Rep. William Davis

Adopted in House on Aug 28, 2017

 

 


 

 


 
10000SB1947ham005LRB100 09675 JWD 28950 a

1
AMENDMENT TO SENATE BILL 1947

2    AMENDMENT NO. ______. Amend Senate Bill 1947 by inserting
3immediately above the enacting clause the following:
 
4    "WHEREAS, This Act may be referred to as the Evidence-Based
5Funding for Student Success Act; therefore"; and
 
6by replacing everything after the enacting clause with the
7following:
 
8    "Section 1. Short title. This Act may be cited as the
9Invest in Kids Act.
 
10    Section 5. Definitions. As used in this Act:
11    "Authorized contribution" means the contribution amount
12that is listed on the contribution authorization certificate
13issued to the taxpayer.
14    "Board" means the State Board of Education.

 

 

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1    "Contribution" means a donation made by the taxpayer during
2the taxable year for providing scholarships as provided in this
3Act.
4    "Custodian" means, with respect to eligible students, an
5Illinois resident who is a parent or legal guardian of the
6eligible student or students.
7    "Department" means the Department of Revenue.
8    "Eligible student" means a child who:
9        (1) is a member of a household whose federal adjusted
10    gross income the year before he or she initially receives a
11    scholarship under this program, as determined by the
12    Department, does not exceed 300% of the federal poverty
13    level and, once the child receives a scholarship, does not
14    exceed 400% of the federal poverty level;
15        (2) is eligible to attend a public elementary school or
16    high school in Illinois in the semester immediately
17    preceding the semester for which he or she first receives a
18    scholarship or is starting school in Illinois for the first
19    time when he or she first receives a scholarship; and
20        (3) resides in Illinois while receiving a scholarship.
21    "Family member" means a parent, child, or sibling, whether
22by whole blood, half blood, or adoption; spouse; or stepchild.
23    "Focus district" means a school district which has a school
24that is either (i) a school that has one or more subgroups in
25which the average student performance is at or below the State
26average for the lowest 10% of student performance in that

 

 

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1subgroup or (ii) a school with an average graduation rate of
2less than 60% and not identified for priority.
3    "Necessary costs and fees" includes the customary charge
4for instruction and use of facilities in general and the
5additional fixed fees charged for specified purposes that are
6required generally of non-scholarship recipients for each
7academic period for which the scholarship applicant actually
8enrolls, including costs associated with student assessments,
9but does not include fees payable only once and other
10contingent deposits that are refundable in whole or in part.
11The Board may prescribe, by rules consistent with this Act,
12detailed provisions concerning the computation of necessary
13costs and fees.
14    "Scholarship granting organization" means an entity that:
15        (1) is exempt from taxation under Section 501(c)(3) of
16    the Internal Revenue Code;
17        (2) uses at least 95% of the qualified contributions
18    received during a taxable year for scholarships;
19        (3) provides scholarships to students according to the
20    guidelines of this Act;
21        (4) deposits and holds qualified contributions and any
22    income derived from qualified contributions in an account
23    that is separate from the organization's operating fund or
24    other funds until such qualified contributions or income
25    are withdrawn for use; and
26        (5) is approved to issue certificates of receipt.

 

 

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1    "Qualified contribution" means the authorized contribution
2made by a taxpayer to a scholarship granting organization for
3which the taxpayer has received a certificate of receipt from
4such organization.
5    "Qualified school" means a non-public school located in
6Illinois and recognized by the Board pursuant to Section
72-3.25o of the School Code.
8    "Scholarship" means an educational scholarship awarded to
9an eligible student to attend a qualified school of their
10custodians' choice in an amount not exceeding the necessary
11costs and fees to attend that school.
12    "Taxpayer" means any individual, corporation, partnership,
13trust, or other entity subject to the Illinois income tax. For
14the purposes of this Act, 2 individuals filing a joint return
15shall be considered one taxpayer.
 
16    Section 10. Credit awards.
17    (a) The Department shall award credits against the tax
18imposed under subsections (a) and (b) of Section 201 of the
19Illinois Income Tax Act to taxpayers who make qualified
20contributions. For contributions made under this Act, the
21credit shall be equal to 75% of the total amount of qualified
22contributions made by the taxpayer during a taxable year, not
23to exceed a credit of $1,000,000 per taxpayer.
24    (b) The aggregate amount of all credits the Department may
25award under this Act in any calendar year may not exceed

 

 

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1$75,000,000.
2    (c) Contributions made by corporations (including
3Subchapter S corporations), partnerships, and trusts under
4this Act may not be directed to a particular subset of schools,
5a particular school, a particular group of students, or a
6particular student. Contributions made by individuals under
7this Act may be directed to a particular subset of schools or a
8particular school but may not be directed to a particular group
9of students or a particular student.
10    (d) No credit shall be taken under this Act for any
11qualified contribution for which the taxpayer claims a federal
12income tax deduction.
13    (e) Credits shall be awarded in a manner, as determined by
14the Department, that is geographically proportionate to
15enrollment in recognized non-public schools in Illinois. If the
16cap on the aggregate credits that may be awarded by the
17Department is not reached by June 1 of a given year, the
18Department shall award remaining credits on a first-come,
19first-served basis, without regard to the limitation of this
20subsection.
 
21    Section 15. Approval to issue certificates of receipt.
22    (a) A scholarship granting organization shall submit an
23application for approval to issue certificates of receipt in
24the form and manner prescribed by the Department, provided that
25each application shall include:

 

 

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1        (1) documentary evidence that the scholarship granting
2    organization has been granted an exemption from taxation
3    under Section 501(c)(3) of the Internal Revenue Code;
4        (2) certification that all qualified contributions and
5    any income derived from qualified contributions are
6    deposited and held in an account that is separate from the
7    scholarship granting organization's operating or other
8    funds until such qualified contributions or income are
9    withdrawn for use;
10        (3) certification that the scholarship granting
11    organization will use at least 95% of its annual revenue
12    from qualified contributions for scholarships;
13        (4) certification that the scholarship granting
14    organization will provide scholarships to eligible
15    students;
16        (5) a list of the names and addresses of all members of
17    the governing board of the scholarship granting
18    organization; and
19        (6) a copy of the most recent financial audit of the
20    scholarship granting organization's accounts and records
21    conducted by an independent certified public accountant in
22    accordance with auditing standards generally accepted in
23    the United States, government auditing standards, and
24    rules adopted by the Department.
25    (b) A scholarship granting organization whose owner or
26operator in the last 7 years has filed for personal bankruptcy

 

 

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1or corporate bankruptcy in a corporation of which he or she
2owned more than 20% shall not be eligible to provide
3scholarships.
4    (c) A scholarship granting organization must not have an
5owner or operator who owns or operates a qualified school or
6has a family member who is a paid staff or board member of a
7participating qualified school.
8    (d) A scholarship granting organization shall comply with
9the anti-discrimination provisions of 42 U.S.C. 2000d.
10    (e) The Department shall review and either approve or deny
11each application to issue certificates of receipt pursuant to
12this Act. Approval or denial of an application shall be made on
13a periodic basis. Applicants shall be notified of the
14Department's determination within 30 business days after the
15application is received.
16    (f) No scholarship granting organization shall issue any
17certificates of receipt without first being approved to issue
18certificates of receipt.
 
19    Section 20. Annual review.
20    (a) Each scholarship granting organization that receives
21approval to issue certificates of receipt shall file an
22application for recertification on an annual basis. Such
23application for recertification shall be in the form and manner
24prescribed by the Department and shall include:
25        (1) certification from the Director or Chief Executive

 

 

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1    Officer of the organization that the organization has
2    complied with and continues to comply with the requirements
3    of this Act, including evidence of that compliance; and
4        (2) a copy of the organization's current financial
5    statements.
6    (b) The Department may revoke the approval of a scholarship
7granting organization to issue certificates of receipt upon a
8finding that the organization has violated this Act or any
9rules adopted under this Act. These violations shall include,
10but need not be limited to, any of the following:
11        (1) failure to meet the requirements of this Act;
12        (2) failure to maintain full and adequate records with
13    respect to the receipt of qualified contributions;
14        (3) failure to supply such records to the Department;
15    or
16        (4) failure to provide notice to the Department of the
17    issuance of certificates of receipt pursuant to Section 35
18    of this Act.
19    (c) Within 5 days after the determination to revoke
20approval, the Department shall provide notice of the
21determination to the scholarship granting organization and
22information regarding the process to request a hearing to
23appeal the determination.
 
24    Section 25. Contribution authorization certificates.
25    (a) A taxpayer shall not be allowed a credit pursuant to

 

 

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1this Act for any contribution to a scholarship granting
2organization that was made prior to the Department's issuance
3of a contribution authorization certificate for such
4contribution to the taxpayer.
5    (b) Prior to making a contribution to a scholarship
6granting organization, the taxpayer shall apply to the
7Department for a contribution authorization certificate.
8    (c) A taxpayer who makes more than one contribution to a
9scholarship granting organization must make a separate
10application for each such contribution authorization
11certificate. The application shall be in the form and manner
12prescribed by the Department, provided that the application
13includes:
14        (1) the taxpayer's name and address;
15        (2) the amount the taxpayer will contribute; and
16        (3) any other information the Department deems
17    necessary.
18    (d) The Department may allow taxpayers to make multiple
19applications on the same form, provided that each application
20shall be treated as a separate application.
21    (e) The Department shall issue credit authorization
22certificates on a first-come, first-served basis based upon the
23date that the Department received the taxpayer's application
24for the certificate subject to the provisions of subsection (e)
25of Section 10 of this Act.
26    (f) A taxpayer's aggregate authorized contribution amount

 

 

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1as listed on one or more authorized contribution certificates
2issued to the taxpayer shall not exceed the aggregate of the
3amounts listed on the taxpayer's applications submitted in
4accordance with this Section.
5    (g) Each contribution authorization certificate shall
6state:
7        (1) the date such certificate was issued;
8        (2) the date by which the authorized contributions
9    listed in the certificate must be made, which shall be 60
10    days from the date of the issuance of a credit
11    authorization certificate;
12        (3) the total amount of authorized contributions; and
13        (4) any other information the Department deems
14    necessary.
15    (h) Credit authorization certificates shall be mailed to
16the appropriate taxpayers within 3 business days after their
17issuance.
18    (i) A taxpayer may rescind all or part of an authorized
19contribution approved under this Act by providing written
20notice to the Department. Amounts rescinded shall no longer be
21deducted from the cap prescribed in Section 10 of this Act.
22    (j) The Department shall maintain on its website a running
23total of the amount of credits for which taxpayers may make
24applications for contribution authorization certification. The
25running total shall be updated every business day.
 

 

 

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1    Section 30. Certificates of receipt.
2    (a) No scholarship granting organization shall issue a
3certificate of receipt for any qualified contribution made by a
4taxpayer under this Act unless that scholarship granting
5organization has been approved to issue certificates of receipt
6pursuant to Section 15 of this Act.
7    (b) No scholarship granting organization shall issue a
8certificate of receipt for a contribution made by a taxpayer
9unless the taxpayer has been issued a credit authorization
10certificate by the Department.
11    (c) If a taxpayer makes a contribution to a scholarship
12granting organization prior to the date by which the authorized
13contribution shall be made, the scholarship granting
14organization shall, within 30 days of receipt of the authorized
15contribution, issue to the taxpayer a written certificate of
16receipt.
17    (d) If a taxpayer fails to make all or a portion of a
18contribution prior to the date by which such authorized
19contribution is required to be made, the taxpayer shall not be
20entitled to a certificate of receipt for that portion of the
21authorized contribution not made.
22    (e) Each certificate of receipt shall state:
23        (1) the name and address of the issuing scholarship
24    granting organization;
25        (2) the taxpayer's name and address;
26        (3) the date for each qualified contribution;

 

 

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1        (4) the amount of each qualified contribution;
2        (5) the total qualified contribution amount; and
3        (6) any other information that the Department may deem
4    necessary.
5    (f) Upon the issuance of a certificate of receipt, the
6issuing scholarship granting organization shall, within 10
7days after issuing the certificate of receipt, provide the
8Department with notification of the issuance of such
9certificate in the form and manner prescribed by the
10Department, provided that such notification shall include:
11        (1) the taxpayer's name and address;
12        (2) the date of the issuance of a certificate of
13    receipt;
14        (3) the qualified contribution date or dates and the
15    amounts contributed on such dates;
16        (4) the total qualified contribution listed on such
17    certificates;
18        (5) the issuing scholarship granting organization's
19    name and address; and
20        (6) any other information the Department may deem
21    necessary.
22    (g) Any portion of a contribution that a taxpayer fails to
23make by the date indicated on the authorized contribution
24certificate shall no longer be deducted from the cap prescribed
25in Section 10 of this Act.
 

 

 

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1    Section 35. Reports.
2    (a) Within 180 days after the end of its fiscal year, each
3scholarship granting organization must provide to the
4Department a copy of a financial audit of its accounts and
5records conducted by an independent certified public
6accountant in accordance with auditing standards generally
7accepted in the United States, government auditing standards,
8and rules adopted by the Department. The audit must include a
9report on financial statements presented in accordance with
10generally accepted accounting principles. The audit must
11include evidence that no less than 95% of qualified
12contributions received were used to provide scholarships to
13eligible students. The Department shall review all audits
14submitted pursuant to this subsection. The Department shall
15request any significant items that were omitted in violation of
16a rule adopted by the Department. The items must be provided
17within 45 days after the date of request. If a scholarship
18granting organization does not comply with the Department's
19request, the Department may revoke the scholarship granting
20organization's ability to issue certificates of receipt.
21    (b) A scholarship granting organization that is approved to
22receive qualified contributions shall report to the
23Department, on a form prescribed by the Department, by January
2431 of each calendar year. The report shall include:
25        (1) the total number of certificates of receipt issued
26    during the immediately preceding calendar year;

 

 

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1        (2) the total dollar amount of qualified contributions
2    received, as set forth in the certificates of receipt
3    issued during the immediately preceding calendar year;
4        (3) the total number of eligible students utilizing
5    scholarships for the immediately preceding calendar year
6    and the school year in progress and the total dollar value
7    of the scholarships;
8        (4) the name and address of each qualified school for
9    which scholarships using qualified contributions were
10    issued during the immediately preceding calendar year,
11    detailing the number, grade, race, gender, income level,
12    and residency by Zip Code of eligible students and the
13    total dollar value of scholarships being utilized at each
14    qualified school by priority group, as identified in
15    subsection (d) of Section 40 of this Act; and
16        (5) any additional information requested by the
17    Department.
18    (c) On or before the last day of March for each calendar
19year, for the immediately preceding calendar year, the
20Department shall submit a written report to the Governor, the
21President of the Senate, the Speaker of the House of
22Representatives, the Minority Leader of the Senate, and the
23Minority Leader of the House of Representatives regarding this
24Act. The report shall include, but not be limited to, the
25following information:
26        (1) the names and addresses of all scholarship granting

 

 

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1    organizations approved to issue certificates of receipt;
2        (2) the number and aggregate total of certificates of
3    receipt issued by each scholarship granting organization;
4    and
5        (3) the information reported to the Department
6    required by subsection (b) of this Section.
7    (d) The sharing and reporting of student data under this
8Section must be in accordance with the requirements of the
9Family Educational Rights and Privacy Act and the Illinois
10School Student Records Act. All parties must preserve the
11confidentiality of such information as required by law. Data
12reported by the Department under subsection (c) of this Section
13must not disaggregate data to a level that will disclose
14demographic data of individual students.
 
15    Section 40. Scholarship granting organization
16responsibilities.
17    (a) Before granting a scholarship for an academic year, all
18scholarship granting organizations shall assess and document
19each student's eligibility for the academic year.
20    (b) A scholarship granting organization shall grant
21scholarships only to eligible students.
22    (c) A scholarship granting organization shall allow an
23eligible student to attend any qualified school of the
24student's choosing, subject to the availability of funds.
25    (d) In granting scholarships, a scholarship granting

 

 

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1organization shall give priority to the following priority
2groups:
3        (1) eligible students who received a scholarship from a
4    scholarship granting organization during the previous
5    school year;
6        (2) eligible students who are members of a household
7    whose previous year's total annual income does not exceed
8    185% of the federal poverty level;
9        (3) eligible students who reside within a focus
10    district; and
11        (4) eligible students who are siblings of students
12    currently receiving a scholarship.
13    (d-5) A scholarship granting organization shall begin
14granting scholarships no later than February 1 preceding the
15school year for which the scholarship is sought. The priority
16groups identified in subsection (d) of this Section shall be
17eligible to receive scholarships on a first-come, first-served
18basis until the April 1 immediately preceding the school year
19for which the scholarship is sought. Applications for
20scholarships for eligible students meeting the qualifications
21of one or more priority groups that are received before April 1
22must be either approved or denied within 10 business days after
23receipt. Beginning April 1, all eligible students shall be
24eligible to receive scholarships without regard to the priority
25groups identified in subsection (d) of this Section.
26    (e) Except as provided in subsection (e-5) of this Section,

 

 

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1scholarships shall not exceed the lesser of (i) the statewide
2average operational expense per student among public schools or
3(ii) the necessary costs and fees for attendance at the
4qualified school. Scholarships shall be prorated as follows:
5        (1) for eligible students whose household income is
6    less than 185% of the federal poverty level, the
7    scholarship shall be 100% of the amount determined pursuant
8    to this subsection (e) and subsection (e-5) of this
9    Section;
10        (2) for eligible students whose household income is
11    185% or more of the federal poverty level but less than
12    250% of the federal poverty level, the average of
13    scholarships shall be 75% of the amount determined pursuant
14    to this subsection (e) and subsection (e-5) of this
15    Section; and
16        (3) for eligible students whose household income is
17    250% or more of the federal poverty level, the average of
18    scholarships shall be 50% of the amount determined pursuant
19    to this subsection (e) and subsection (e-5) of this
20    Section.
21    (e-5) The statewide average operational expense per
22student among public schools shall be multiplied by the
23following factors:
24        (1) for students determined eligible to receive
25    services under the federal Individuals with Disabilities
26    Education Act, 2;

 

 

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1        (2) for students who are English learners, as defined
2    in subsection (d) of Section 14C-2 of the School Code, 1.2;
3    and
4        (3) for students who are gifted and talented children,
5    as defined in Section 14A-20 of the School Code, 1.1.
6    (f) A scholarship granting organization shall distribute
7scholarship payments to the participating school where the
8student is enrolled.
9    (g) For the 2018-2019 school year through the 2021-2022
10school year, each scholarship granting organization shall
11expend no less than 75% of the qualified contributions received
12during the calendar year in which the qualified contributions
13were received. No more than 25% of the qualified contributions
14may be carried forward to the following calendar year.
15    (h) For the 2022-2023 school year, each scholarship
16granting organization shall expend all qualified contributions
17received during the calendar year in which the qualified
18contributions were received. No qualified contributions may be
19carried forward to the following calendar year.
20    (i) A scholarship granting organization shall allow an
21eligible student to transfer a scholarship during a school year
22to any other participating school of the custodian's choice.
23Such scholarships shall be prorated.
24    (j) With the prior approval of the Department, a
25scholarship granting organization may transfer funds to
26another scholarship granting organization if additional funds

 

 

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1are required to meet scholarship demands at the receiving
2scholarship granting organization. All transferred funds must
3be deposited by the receiving scholarship granting
4organization into its scholarship accounts. All transferred
5amounts received by any scholarship granting organization must
6be separately disclosed to the Department.
7    (k) If the approval of a scholarship granting organization
8is revoked as provided in Section 20 of this Act or the
9scholarship granting organization is dissolved, all remaining
10qualified contributions of the scholarship granting
11organization shall be transferred to another scholarship
12granting organization. All transferred funds must be deposited
13by the receiving scholarship granting organization into its
14scholarship accounts.
15    (l) Scholarship granting organizations shall make
16reasonable efforts to advertise the availability of
17scholarships to eligible students.
 
18    Section 45. State Board responsibilities.
19    (a) Beginning in the 2019-2020 school year, students who
20have been granted a scholarship under this Act shall be
21annually assessed at the qualified school where the student
22attends school in the same manner in which students that attend
23public schools are annually assessed pursuant to Section
242-3.64a-5 of the School Code. Such qualified school shall pay
25costs associated with this requirement.

 

 

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1    (b) The Board shall select an independent research
2organization, which may be a public or private entity or
3university, to which participating qualified schools must
4report the scores of students who are receiving scholarships
5and are assessed pursuant to subsection (a) of this Section.
6Costs associated with the independent research organization
7shall be paid by the scholarship granting organizations on a
8per-pupil basis or by gifts, grants, or donations received by
9the Board under subsection (d) of this Section, as determined
10by the Board. The independent research organization must
11annually report to the Board on the year-to-year learning gains
12of students receiving scholarships on a statewide basis. The
13report shall also include, to the extent possible, a comparison
14of these learning gains to the statewide learning gains of
15public school students with socioeconomic backgrounds similar
16to those of students receiving scholarships. The annual report
17shall be delivered to the Board and published on its website.
18    (c) Beginning within 120 days after the Board first
19receives the annual report by the independent research
20organization as provided in subsection (b) of this Section and
21on an annual basis thereafter, the Board shall submit a written
22report to the Governor, the President of the Senate, the
23Speaker of the House of Representatives, the Minority Leader of
24the Senate, and the Minority Leader of the House of
25Representatives regarding this Act. Such report shall include
26an evaluation of the academic performance of students receiving

 

 

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1scholarships and recommendations for improving student
2performance.
3    (d) Subject to the State Officials and Employees Ethics
4Act, the Board may receive and expend gifts, grants, and
5donations of any kind from any public or private entity to
6carry out the purposes of this Section, subject to the terms
7and conditions under which the gifts are given, provided that
8all such terms and conditions are permissible under law.
9    (e) The sharing and reporting of student learning gain data
10under this Section must be in accordance with requirements of
11the Family Educational Rights and Privacy Act and the Illinois
12School Student Records Act. All parties must preserve the
13confidentiality of such information as required by law. The
14annual report must not disaggregate data to a level that will
15disclose the academic level of individual students.
 
16    Section 50. Qualified school responsibilities. A qualified
17school that accepts scholarship students must do all of the
18following:
19        (1) provide to a scholarship granting organization,
20    upon request, all documentation required for the student's
21    participation, including the non-public school's cost and
22    student's fee schedules;
23        (2) be academically accountable to the custodian for
24    meeting the educational needs of the student by:
25            (A) at a minimum, annually providing to the

 

 

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1        custodian a written explanation of the student's
2        progress; and
3            (B) annually administering assessments required by
4        subsection (a) of Section 45 of this Act in the same
5        manner in which they are administered at public schools
6        pursuant to Section 2-3.64a-5 of the School Code; the
7        Board shall bill participating qualified schools for
8        all costs associated with administering assessments
9        required by this paragraph; the participating
10        qualified schools shall ensure that all test security
11        and assessment administration procedures are followed;
12        participating qualified schools must report individual
13        student scores to the custodians of the students; the
14        independent research organization described in
15        subsection (b) of Section 45 of this Act shall be
16        provided all student score data in a secure manner by
17        the participating qualified school.
18    The inability of a qualified school to meet the
19requirements of this Section shall constitute a basis for the
20ineligibility of the qualified school to participate in the
21scholarship program as determined by the Board.
 
22    Section 55. Custodian and student responsibilities.
23    (a) The custodian must select a qualified school and apply
24for the admission of his or her child.
25    (b) The custodian shall ensure that the student

 

 

10000SB1947ham005- 23 -LRB100 09675 JWD 28950 a

1participating in the scholarship program takes the assessment
2required by subsection (a) of Section 45 of this Act.
3    (c) Each custodian and each student has an obligation to
4comply with the qualified school's published policies.
5    (d) The custodian shall authorize the scholarship granting
6organization to access information needed for income
7eligibility determinations.
 
8    Section 60. Recordkeeping; rulemaking; violations.
9    (a) Each taxpayer shall, for each taxable year for which
10the tax credit provided for under this Act is claimed, maintain
11records of the following information: (i) contribution
12authorization certificates obtained under Section 25 of this
13Act and (ii) certificates of receipt obtained under Section 30
14of this Act.
15    (b) The Board and the Department may adopt rules consistent
16with and necessary for the implementation of this Act.
17    (c) Violations of State laws or rules and complaints
18relating to program participation shall be referred to the
19Attorney General.
 
20    Section 65. Credit period; repeal.
21    (a) A taxpayer may take a credit under this Act for tax
22years beginning on or after January 1, 2018 and ending before
23January 1, 2023. A taxpayer may not take a credit pursuant to
24this Act for tax years beginning on or after January 1, 2023.

 

 

10000SB1947ham005- 24 -LRB100 09675 JWD 28950 a

1    (b) This Act is repealed on January 1, 2024.
 
2    Section 900. The Open Meetings Act is amended by changing
3Section 2 as follows:
 
4    (5 ILCS 120/2)  (from Ch. 102, par. 42)
5    Sec. 2. Open meetings.
6    (a) Openness required. All meetings of public bodies shall
7be open to the public unless excepted in subsection (c) and
8closed in accordance with Section 2a.
9    (b) Construction of exceptions. The exceptions contained
10in subsection (c) are in derogation of the requirement that
11public bodies meet in the open, and therefore, the exceptions
12are to be strictly construed, extending only to subjects
13clearly within their scope. The exceptions authorize but do not
14require the holding of a closed meeting to discuss a subject
15included within an enumerated exception.
16    (c) Exceptions. A public body may hold closed meetings to
17consider the following subjects:
18        (1) The appointment, employment, compensation,
19    discipline, performance, or dismissal of specific
20    employees of the public body or legal counsel for the
21    public body, including hearing testimony on a complaint
22    lodged against an employee of the public body or against
23    legal counsel for the public body to determine its
24    validity. However, a meeting to consider an increase in

 

 

10000SB1947ham005- 25 -LRB100 09675 JWD 28950 a

1    compensation to a specific employee of a public body that
2    is subject to the Local Government Wage Increase
3    Transparency Act may not be closed and shall be open to the
4    public and posted and held in accordance with this Act.
5        (2) Collective negotiating matters between the public
6    body and its employees or their representatives, or
7    deliberations concerning salary schedules for one or more
8    classes of employees.
9        (3) The selection of a person to fill a public office,
10    as defined in this Act, including a vacancy in a public
11    office, when the public body is given power to appoint
12    under law or ordinance, or the discipline, performance or
13    removal of the occupant of a public office, when the public
14    body is given power to remove the occupant under law or
15    ordinance.
16        (4) Evidence or testimony presented in open hearing, or
17    in closed hearing where specifically authorized by law, to
18    a quasi-adjudicative body, as defined in this Act, provided
19    that the body prepares and makes available for public
20    inspection a written decision setting forth its
21    determinative reasoning.
22        (5) The purchase or lease of real property for the use
23    of the public body, including meetings held for the purpose
24    of discussing whether a particular parcel should be
25    acquired.
26        (6) The setting of a price for sale or lease of

 

 

10000SB1947ham005- 26 -LRB100 09675 JWD 28950 a

1    property owned by the public body.
2        (7) The sale or purchase of securities, investments, or
3    investment contracts. This exception shall not apply to the
4    investment of assets or income of funds deposited into the
5    Illinois Prepaid Tuition Trust Fund.
6        (8) Security procedures, school building safety and
7    security, and the use of personnel and equipment to respond
8    to an actual, a threatened, or a reasonably potential
9    danger to the safety of employees, students, staff, the
10    public, or public property.
11        (9) Student disciplinary cases.
12        (10) The placement of individual students in special
13    education programs and other matters relating to
14    individual students.
15        (11) Litigation, when an action against, affecting or
16    on behalf of the particular public body has been filed and
17    is pending before a court or administrative tribunal, or
18    when the public body finds that an action is probable or
19    imminent, in which case the basis for the finding shall be
20    recorded and entered into the minutes of the closed
21    meeting.
22        (12) The establishment of reserves or settlement of
23    claims as provided in the Local Governmental and
24    Governmental Employees Tort Immunity Act, if otherwise the
25    disposition of a claim or potential claim might be
26    prejudiced, or the review or discussion of claims, loss or

 

 

10000SB1947ham005- 27 -LRB100 09675 JWD 28950 a

1    risk management information, records, data, advice or
2    communications from or with respect to any insurer of the
3    public body or any intergovernmental risk management
4    association or self insurance pool of which the public body
5    is a member.
6        (13) Conciliation of complaints of discrimination in
7    the sale or rental of housing, when closed meetings are
8    authorized by the law or ordinance prescribing fair housing
9    practices and creating a commission or administrative
10    agency for their enforcement.
11        (14) Informant sources, the hiring or assignment of
12    undercover personnel or equipment, or ongoing, prior or
13    future criminal investigations, when discussed by a public
14    body with criminal investigatory responsibilities.
15        (15) Professional ethics or performance when
16    considered by an advisory body appointed to advise a
17    licensing or regulatory agency on matters germane to the
18    advisory body's field of competence.
19        (16) Self evaluation, practices and procedures or
20    professional ethics, when meeting with a representative of
21    a statewide association of which the public body is a
22    member.
23        (17) The recruitment, credentialing, discipline or
24    formal peer review of physicians or other health care
25    professionals, or for the discussion of matters protected
26    under the federal Patient Safety and Quality Improvement

 

 

10000SB1947ham005- 28 -LRB100 09675 JWD 28950 a

1    Act of 2005, and the regulations promulgated thereunder,
2    including 42 C.F.R. Part 3 (73 FR 70732), or the federal
3    Health Insurance Portability and Accountability Act of
4    1996, and the regulations promulgated thereunder,
5    including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
6    or other institution providing medical care, that is
7    operated by the public body.
8        (18) Deliberations for decisions of the Prisoner
9    Review Board.
10        (19) Review or discussion of applications received
11    under the Experimental Organ Transplantation Procedures
12    Act.
13        (20) The classification and discussion of matters
14    classified as confidential or continued confidential by
15    the State Government Suggestion Award Board.
16        (21) Discussion of minutes of meetings lawfully closed
17    under this Act, whether for purposes of approval by the
18    body of the minutes or semi-annual review of the minutes as
19    mandated by Section 2.06.
20        (22) Deliberations for decisions of the State
21    Emergency Medical Services Disciplinary Review Board.
22        (23) The operation by a municipality of a municipal
23    utility or the operation of a municipal power agency or
24    municipal natural gas agency when the discussion involves
25    (i) contracts relating to the purchase, sale, or delivery
26    of electricity or natural gas or (ii) the results or

 

 

10000SB1947ham005- 29 -LRB100 09675 JWD 28950 a

1    conclusions of load forecast studies.
2        (24) Meetings of a residential health care facility
3    resident sexual assault and death review team or the
4    Executive Council under the Abuse Prevention Review Team
5    Act.
6        (25) Meetings of an independent team of experts under
7    Brian's Law.
8        (26) Meetings of a mortality review team appointed
9    under the Department of Juvenile Justice Mortality Review
10    Team Act.
11        (27) (Blank).
12        (28) Correspondence and records (i) that may not be
13    disclosed under Section 11-9 of the Illinois Public Aid
14    Code or (ii) that pertain to appeals under Section 11-8 of
15    the Illinois Public Aid Code.
16        (29) Meetings between internal or external auditors
17    and governmental audit committees, finance committees, and
18    their equivalents, when the discussion involves internal
19    control weaknesses, identification of potential fraud risk
20    areas, known or suspected frauds, and fraud interviews
21    conducted in accordance with generally accepted auditing
22    standards of the United States of America.
23        (30) Those meetings or portions of meetings of a
24    fatality review team or the Illinois Fatality Review Team
25    Advisory Council during which a review of the death of an
26    eligible adult in which abuse or neglect is suspected,

 

 

10000SB1947ham005- 30 -LRB100 09675 JWD 28950 a

1    alleged, or substantiated is conducted pursuant to Section
2    15 of the Adult Protective Services Act.
3        (31) Meetings and deliberations for decisions of the
4    Concealed Carry Licensing Review Board under the Firearm
5    Concealed Carry Act.
6        (32) Meetings between the Regional Transportation
7    Authority Board and its Service Boards when the discussion
8    involves review by the Regional Transportation Authority
9    Board of employment contracts under Section 28d of the
10    Metropolitan Transit Authority Act and Sections 3A.18 and
11    3B.26 of the Regional Transportation Authority Act.
12        (33) Those meetings or portions of meetings of the
13    advisory committee and peer review subcommittee created
14    under Section 320 of the Illinois Controlled Substances Act
15    during which specific controlled substance prescriber,
16    dispenser, or patient information is discussed.
17        (34) Meetings of the Tax Increment Financing Reform
18    Task Force under Section 2505-800 of the Department of
19    Revenue Law of the Civil Administrative Code of Illinois.
20    (d) Definitions. For purposes of this Section:
21    "Employee" means a person employed by a public body whose
22relationship with the public body constitutes an
23employer-employee relationship under the usual common law
24rules, and who is not an independent contractor.
25    "Public office" means a position created by or under the
26Constitution or laws of this State, the occupant of which is

 

 

10000SB1947ham005- 31 -LRB100 09675 JWD 28950 a

1charged with the exercise of some portion of the sovereign
2power of this State. The term "public office" shall include
3members of the public body, but it shall not include
4organizational positions filled by members thereof, whether
5established by law or by a public body itself, that exist to
6assist the body in the conduct of its business.
7    "Quasi-adjudicative body" means an administrative body
8charged by law or ordinance with the responsibility to conduct
9hearings, receive evidence or testimony and make
10determinations based thereon, but does not include local
11electoral boards when such bodies are considering petition
12challenges.
13    (e) Final action. No final action may be taken at a closed
14meeting. Final action shall be preceded by a public recital of
15the nature of the matter being considered and other information
16that will inform the public of the business being conducted.
17(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
18eff. 7-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14;
1999-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480, eff. 9-9-15;
2099-642, eff. 7-28-16; 99-646, eff. 7-28-16; 99-687, eff.
211-1-17; revised 9-21-16.)
 
22    Section 902. The Freedom of Information Act is amended by
23changing Section 7.5 as follows:
 
24    (5 ILCS 140/7.5)

 

 

10000SB1947ham005- 32 -LRB100 09675 JWD 28950 a

1    Sec. 7.5. Statutory exemptions. To the extent provided for
2by the statutes referenced below, the following shall be exempt
3from inspection and copying:
4        (a) All information determined to be confidential
5    under Section 4002 of the Technology Advancement and
6    Development Act.
7        (b) Library circulation and order records identifying
8    library users with specific materials under the Library
9    Records Confidentiality Act.
10        (c) Applications, related documents, and medical
11    records received by the Experimental Organ Transplantation
12    Procedures Board and any and all documents or other records
13    prepared by the Experimental Organ Transplantation
14    Procedures Board or its staff relating to applications it
15    has received.
16        (d) Information and records held by the Department of
17    Public Health and its authorized representatives relating
18    to known or suspected cases of sexually transmissible
19    disease or any information the disclosure of which is
20    restricted under the Illinois Sexually Transmissible
21    Disease Control Act.
22        (e) Information the disclosure of which is exempted
23    under Section 30 of the Radon Industry Licensing Act.
24        (f) Firm performance evaluations under Section 55 of
25    the Architectural, Engineering, and Land Surveying
26    Qualifications Based Selection Act.

 

 

10000SB1947ham005- 33 -LRB100 09675 JWD 28950 a

1        (g) Information the disclosure of which is restricted
2    and exempted under Section 50 of the Illinois Prepaid
3    Tuition Act.
4        (h) Information the disclosure of which is exempted
5    under the State Officials and Employees Ethics Act, and
6    records of any lawfully created State or local inspector
7    general's office that would be exempt if created or
8    obtained by an Executive Inspector General's office under
9    that Act.
10        (i) Information contained in a local emergency energy
11    plan submitted to a municipality in accordance with a local
12    emergency energy plan ordinance that is adopted under
13    Section 11-21.5-5 of the Illinois Municipal Code.
14        (j) Information and data concerning the distribution
15    of surcharge moneys collected and remitted by wireless
16    carriers under the Wireless Emergency Telephone Safety
17    Act.
18        (k) Law enforcement officer identification information
19    or driver identification information compiled by a law
20    enforcement agency or the Department of Transportation
21    under Section 11-212 of the Illinois Vehicle Code.
22        (l) Records and information provided to a residential
23    health care facility resident sexual assault and death
24    review team or the Executive Council under the Abuse
25    Prevention Review Team Act.
26        (m) Information provided to the predatory lending

 

 

10000SB1947ham005- 34 -LRB100 09675 JWD 28950 a

1    database created pursuant to Article 3 of the Residential
2    Real Property Disclosure Act, except to the extent
3    authorized under that Article.
4        (n) Defense budgets and petitions for certification of
5    compensation and expenses for court appointed trial
6    counsel as provided under Sections 10 and 15 of the Capital
7    Crimes Litigation Act. This subsection (n) shall apply
8    until the conclusion of the trial of the case, even if the
9    prosecution chooses not to pursue the death penalty prior
10    to trial or sentencing.
11        (o) Information that is prohibited from being
12    disclosed under Section 4 of the Illinois Health and
13    Hazardous Substances Registry Act.
14        (p) Security portions of system safety program plans,
15    investigation reports, surveys, schedules, lists, data, or
16    information compiled, collected, or prepared by or for the
17    Regional Transportation Authority under Section 2.11 of
18    the Regional Transportation Authority Act or the St. Clair
19    County Transit District under the Bi-State Transit Safety
20    Act.
21        (q) Information prohibited from being disclosed by the
22    Personnel Records Review Act.
23        (r) Information prohibited from being disclosed by the
24    Illinois School Student Records Act.
25        (s) Information the disclosure of which is restricted
26    under Section 5-108 of the Public Utilities Act.

 

 

10000SB1947ham005- 35 -LRB100 09675 JWD 28950 a

1        (t) All identified or deidentified health information
2    in the form of health data or medical records contained in,
3    stored in, submitted to, transferred by, or released from
4    the Illinois Health Information Exchange, and identified
5    or deidentified health information in the form of health
6    data and medical records of the Illinois Health Information
7    Exchange in the possession of the Illinois Health
8    Information Exchange Authority due to its administration
9    of the Illinois Health Information Exchange. The terms
10    "identified" and "deidentified" shall be given the same
11    meaning as in the Health Insurance Portability and
12    Accountability Act of 1996, Public Law 104-191, or any
13    subsequent amendments thereto, and any regulations
14    promulgated thereunder.
15        (u) Records and information provided to an independent
16    team of experts under Brian's Law.
17        (v) Names and information of people who have applied
18    for or received Firearm Owner's Identification Cards under
19    the Firearm Owners Identification Card Act or applied for
20    or received a concealed carry license under the Firearm
21    Concealed Carry Act, unless otherwise authorized by the
22    Firearm Concealed Carry Act; and databases under the
23    Firearm Concealed Carry Act, records of the Concealed Carry
24    Licensing Review Board under the Firearm Concealed Carry
25    Act, and law enforcement agency objections under the
26    Firearm Concealed Carry Act.

 

 

10000SB1947ham005- 36 -LRB100 09675 JWD 28950 a

1        (w) Personally identifiable information which is
2    exempted from disclosure under subsection (g) of Section
3    19.1 of the Toll Highway Act.
4        (x) Information which is exempted from disclosure
5    under Section 5-1014.3 of the Counties Code or Section
6    8-11-21 of the Illinois Municipal Code.
7        (y) Confidential information under the Adult
8    Protective Services Act and its predecessor enabling
9    statute, the Elder Abuse and Neglect Act, including
10    information about the identity and administrative finding
11    against any caregiver of a verified and substantiated
12    decision of abuse, neglect, or financial exploitation of an
13    eligible adult maintained in the Registry established
14    under Section 7.5 of the Adult Protective Services Act.
15        (z) Records and information provided to a fatality
16    review team or the Illinois Fatality Review Team Advisory
17    Council under Section 15 of the Adult Protective Services
18    Act.
19        (aa) Information which is exempted from disclosure
20    under Section 2.37 of the Wildlife Code.
21        (bb) Information which is or was prohibited from
22    disclosure by the Juvenile Court Act of 1987.
23        (cc) Recordings made under the Law Enforcement
24    Officer-Worn Body Camera Act, except to the extent
25    authorized under that Act.
26        (dd) Information that is prohibited from being

 

 

10000SB1947ham005- 37 -LRB100 09675 JWD 28950 a

1    disclosed under Section 45 of the Condominium and Common
2    Interest Community Ombudsperson Act.
3        (ee) (dd) Information that is exempted from disclosure
4    under Section 30.1 of the Pharmacy Practice Act.
5        (ff) Information which is exempted from disclosure
6    under Section 2505-800 of the Department of Revenue Law of
7    the Civil Administrative Code of Illinois.
8(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
9eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14;
1099-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16;
1199-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff.
128-19-16; revised 9-1-16.)
 
13    Section 904. The Election Code is amended by changing
14Section 28-2 as follows:
 
15    (10 ILCS 5/28-2)  (from Ch. 46, par. 28-2)
16    Sec. 28-2. (a) Except as otherwise provided in this
17Section, petitions for the submission of public questions to
18referendum must be filed with the appropriate officer or board
19not less than 92 days prior to a regular election to be
20eligible for submission on the ballot at such election; and
21petitions for the submission of a question under Section 18-120
22or Section 18-206 of the Property Tax Code must be filed with
23the appropriate officer or board not more than 10 months nor
24less than 6 months prior to the election at which such question

 

 

10000SB1947ham005- 38 -LRB100 09675 JWD 28950 a

1is to be submitted to the voters.
2    (b) However, petitions for the submission of a public
3question to referendum which proposes the creation or formation
4of a political subdivision must be filed with the appropriate
5officer or board not less than 122 days prior to a regular
6election to be eligible for submission on the ballot at such
7election.
8    (c) Resolutions or ordinances of governing boards of
9political subdivisions which initiate the submission of public
10questions pursuant to law must be adopted not less than 79 days
11before a regularly scheduled election to be eligible for
12submission on the ballot at such election.
13    (d) A petition, resolution or ordinance initiating the
14submission of a public question may specify a regular election
15at which the question is to be submitted, and must so specify
16if the statute authorizing the public question requires
17submission at a particular election. However, no petition,
18resolution or ordinance initiating the submission of a public
19question, other than a legislative resolution initiating an
20amendment to the Constitution, may specify such submission at
21an election more than one year, or 15 months in the case of a
22back door referendum as defined in subsection (f), after the
23date on which it is filed or adopted, as the case may be. A
24petition, resolution or ordinance initiating a public question
25which specifies a particular election at which the question is
26to be submitted shall be so limited, and shall not be valid as

 

 

10000SB1947ham005- 39 -LRB100 09675 JWD 28950 a

1to any other election, other than an emergency referendum
2ordered pursuant to Section 2A-1.4.
3    (e) If a petition initiating a public question does not
4specify a regularly scheduled election, the public question
5shall be submitted to referendum at the next regular election
6occurring not less than 92 days after the filing of the
7petition, or not less than 122 days after the filing of a
8petition for referendum to create a political subdivision. If a
9resolution or ordinance initiating a public question does not
10specify a regularly scheduled election, the public question
11shall be submitted to referendum at the next regular election
12occurring not less than 79 days after the adoption of the
13resolution or ordinance.
14    (f) In the case of back door referenda, any limitations in
15another statute authorizing such a referendum which restrict
16the time in which the initiating petition may be validly filed
17shall apply to such petition, in addition to the filing
18deadlines specified in this Section for submission at a
19particular election. In the case of any back door referendum,
20the publication of the ordinance or resolution of the political
21subdivision shall include a notice of (1) the specific number
22of voters required to sign a petition requesting that a public
23question be submitted to the voters of the subdivision; (2) the
24time within which the petition must be filed; and (3) the date
25of the prospective referendum. The secretary or clerk of the
26political subdivision shall provide a petition form to any

 

 

10000SB1947ham005- 40 -LRB100 09675 JWD 28950 a

1individual requesting one. The legal sufficiency of that form,
2if provided by the secretary or clerk of the political
3subdivision, cannot be the basis of a challenge to placing the
4back door referendum on the ballot. As used herein, a "back
5door referendum" is the submission of a public question to the
6voters of a political subdivision, initiated by a petition of
7voters or residents of such political subdivision, to determine
8whether an action by the governing body of such subdivision
9shall be adopted or rejected.
10    (g) A petition for the incorporation or formation of a new
11political subdivision whose officers are to be elected rather
12than appointed must have attached to it an affidavit attesting
13that at least 122 days and no more than 152 days prior to such
14election notice of intention to file such petition was
15published in a newspaper published within the proposed
16political subdivision, or if none, in a newspaper of general
17circulation within the territory of the proposed political
18subdivision in substantially the following form:
19
NOTICE OF PETITION TO FORM A NEW........
20    Residents of the territory described below are notified
21that a petition will or has been filed in the Office
22of............requesting a referendum to establish a
23new........, to be called the............
24    *The officers of the new...........will be elected on the
25same day as the referendum. Candidates for the governing board
26of the new......may file nominating petitions with the officer

 

 

10000SB1947ham005- 41 -LRB100 09675 JWD 28950 a

1named above until...........
2    The territory proposed to comprise the new........is
3described as follows:
4        (description of territory included in petition)
5        (signature)....................................
6        Name and address of person or persons proposing
7        the new political subdivision.
8    * Where applicable.
9    Failure to file such affidavit, or failure to publish the
10required notice with the correct information contained therein
11shall render the petition, and any referendum held pursuant to
12such petition, null and void.
13    Notwithstanding the foregoing provisions of this
14subsection (g) or any other provisions of this Code, the
15publication of notice and affidavit requirements of this
16subsection (g) shall not apply to any petition filed under
17Article 7 or 11E of the School Code nor to any referendum held
18pursuant to any such petition, and neither any petition filed
19under any of those Articles nor any referendum held pursuant to
20any such petition shall be rendered null and void because of
21the failure to file an affidavit or publish a notice with
22respect to the petition or referendum as required under this
23subsection (g) for petitions that are not filed under any of
24those Articles of the School Code.
25(Source: P.A. 96-1008, eff. 7-6-10.)
 

 

 

10000SB1947ham005- 42 -LRB100 09675 JWD 28950 a

1    Section 905. The Economic Development Area Tax Increment
2Allocation Act is amended by changing Section 7 as follows:
 
3    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
4    Sec. 7. Creation of special tax allocation fund. If a
5municipality has adopted tax increment allocation financing
6for an economic development project area by ordinance, the
7county clerk has thereafter certified the "total initial
8equalized assessed value" of the taxable real property within
9such economic development project area in the manner provided
10in Section 6 of this Act, and the Department has approved and
11certified the economic development project area, each year
12after the date of the certification by the county clerk of the
13"total initial equalized assessed value" until economic
14development project costs and all municipal obligations
15financing economic development project costs have been paid,
16the ad valorem taxes, if any, arising from the levies upon the
17taxable real property in the economic development project area
18by taxing districts and tax rates determined in the manner
19provided in subsection (b) of Section 6 of this Act shall be
20divided as follows:
21    (1) That portion of the taxes levied upon each taxable lot,
22block, tract or parcel of real property which is attributable
23to the lower of the current equalized assessed value or the
24initial equalized assessed value of each such taxable lot,
25block, tract, or parcel of real property existing at the time

 

 

10000SB1947ham005- 43 -LRB100 09675 JWD 28950 a

1tax increment allocation financing was adopted, shall be
2allocated to and when collected shall be paid by the county
3collector to the respective affected taxing districts in the
4manner required by law in the absence of the adoption of tax
5increment allocation financing.
6    (2) That portion, if any, of those taxes which is
7attributable to the increase in the current equalized assessed
8valuation of each taxable lot, block, tract, or parcel of real
9property in the economic development project area, over and
10above the initial equalized assessed value of each property
11existing at the time tax increment allocation financing was
12adopted, shall be allocated to and when collected shall be paid
13to the municipal treasurer, who shall deposit those taxes into
14a special fund called the special tax allocation fund of the
15municipality for the purpose of paying economic development
16project costs and obligations incurred in the payment thereof.
17    The municipality, by an ordinance adopting tax increment
18allocation financing, may pledge the funds in and to be
19deposited in the special tax allocation fund for the payment of
20obligations issued under this Act and for the payment of
21economic development project costs. No part of the current
22equalized assessed valuation of each property in the economic
23development project area attributable to any increase above the
24total initial equalized assessed value, of such properties
25shall be used in calculating the general State school aid
26formula, provided for in Section 18-8 of the School Code, or

 

 

10000SB1947ham005- 44 -LRB100 09675 JWD 28950 a

1the evidence-based funding formula, provided for in Section
218-8.15 of the School Code, until such time as all economic
3development projects costs have been paid as provided for in
4this Section.
5    When the economic development project costs, including
6without limitation all municipal obligations financing
7economic development project costs incurred under this Act,
8have been paid, all surplus funds then remaining in the special
9tax allocation fund shall be distributed by being paid by the
10municipal treasurer to the county collector, who shall
11immediately thereafter pay those funds to the taxing districts
12having taxable property in the economic development project
13area in the same manner and proportion as the most recent
14distribution by the county collector to those taxing districts
15of real property taxes from real property in the economic
16development project area.
17    Upon the payment of all economic development project costs,
18retirement of obligations and the distribution of any excess
19monies pursuant to this Section the municipality shall adopt an
20ordinance dissolving the special tax allocation fund for the
21economic development project area, terminating the economic
22development project area, and terminating the use of tax
23increment allocation financing for the economic development
24project area. Thereafter the rates of the taxing districts
25shall be extended and taxes levied, collected and distributed
26in the manner applicable in the absence of the adoption of tax

 

 

10000SB1947ham005- 45 -LRB100 09675 JWD 28950 a

1increment allocation financing.
2    Nothing in this Section shall be construed as relieving
3property in economic development project areas from being
4assessed as provided in the Property Tax Code, or as relieving
5owners of that property from paying a uniform rate of taxes, as
6required by Section 4 of Article IX of the Illinois
7Constitution.
8(Source: P.A. 98-463, eff. 8-16-13.)
 
9    Section 910. The Civil Administrative Code of Illinois
10(Department of Revenue Law) is amended by adding Section
112505-800 as follows:
 
12    (20 ILCS 2505/2505-800 new)
13    Sec. 2505-800. Tax Increment Financing Reform Task Force.
14    (a) There is hereby created the Tax Increment Financing
15Reform Task Force which shall consist of the following members:
16        (1) 3 members of the General Assembly, appointed by the
17    President of the Senate;
18        (2) 3 members of the General Assembly, appointed by the
19    Minority Leader of the Senate;
20        (3) 3 members of the General Assembly, appointed by the
21    Speaker of the House of Representatives; and
22        (4) 3 members of the General Assembly, appointed by the
23    Minority Leader of the House of Representatives.
24    (b) The members of the Task Force shall elect one co-chair

 

 

10000SB1947ham005- 46 -LRB100 09675 JWD 28950 a

1from each legislative caucus, who shall call meetings of the
2Task Force to order. The Task Force shall hold an initial
3meeting within 60 days after the effective date of this
4amendatory Act of the 100th General Assembly.
5    (c) The Task Force shall conduct a study examining current
6Tax Increment Financing (TIF) laws in this State and issues
7that include, but are not limited to:
8        (1) the benefits and costs of TIF districts;
9        (2) the interaction between TIF law and school funding;
10        (3) the expenditure of TIF funds; and
11        (4) the expenditure of TIF surplus funds.
12    (d) The Task Force shall report the findings of the study
13and any recommendations to the General Assembly on or before
14April 1, 2018, at which time the Task Force shall be dissolved.
15    (e) The Department of Revenue shall provide staff and
16administrative support to the Task Force, and shall post on its
17website the report under subsection (d) of this Section.
18    (f) The Task Force is exempt from any requirements under
19the Freedom of Information Act and Open Meetings Act.
20    (g) This Section is repealed on April 30, 2018.
 
21    Section 915. The State Finance Act is amended by changing
22Section 13.2 as follows:
 
23    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
24    Sec. 13.2. Transfers among line item appropriations.

 

 

10000SB1947ham005- 47 -LRB100 09675 JWD 28950 a

1    (a) Transfers among line item appropriations from the same
2treasury fund for the objects specified in this Section may be
3made in the manner provided in this Section when the balance
4remaining in one or more such line item appropriations is
5insufficient for the purpose for which the appropriation was
6made.
7    (a-1) No transfers may be made from one agency to another
8agency, nor may transfers be made from one institution of
9higher education to another institution of higher education
10except as provided by subsection (a-4).
11    (a-2) Except as otherwise provided in this Section,
12transfers may be made only among the objects of expenditure
13enumerated in this Section, except that no funds may be
14transferred from any appropriation for personal services, from
15any appropriation for State contributions to the State
16Employees' Retirement System, from any separate appropriation
17for employee retirement contributions paid by the employer, nor
18from any appropriation for State contribution for employee
19group insurance. During State fiscal year 2005, an agency may
20transfer amounts among its appropriations within the same
21treasury fund for personal services, employee retirement
22contributions paid by employer, and State Contributions to
23retirement systems; notwithstanding and in addition to the
24transfers authorized in subsection (c) of this Section, the
25fiscal year 2005 transfers authorized in this sentence may be
26made in an amount not to exceed 2% of the aggregate amount

 

 

10000SB1947ham005- 48 -LRB100 09675 JWD 28950 a

1appropriated to an agency within the same treasury fund. During
2State fiscal year 2007, the Departments of Children and Family
3Services, Corrections, Human Services, and Juvenile Justice
4may transfer amounts among their respective appropriations
5within the same treasury fund for personal services, employee
6retirement contributions paid by employer, and State
7contributions to retirement systems. During State fiscal year
82010, the Department of Transportation may transfer amounts
9among their respective appropriations within the same treasury
10fund for personal services, employee retirement contributions
11paid by employer, and State contributions to retirement
12systems. During State fiscal years 2010 and 2014 only, an
13agency may transfer amounts among its respective
14appropriations within the same treasury fund for personal
15services, employee retirement contributions paid by employer,
16and State contributions to retirement systems.
17Notwithstanding, and in addition to, the transfers authorized
18in subsection (c) of this Section, these transfers may be made
19in an amount not to exceed 2% of the aggregate amount
20appropriated to an agency within the same treasury fund.
21    (a-2.5) During State fiscal year 2015 only, the State's
22Attorneys Appellate Prosecutor may transfer amounts among its
23respective appropriations contained in operational line items
24within the same treasury fund. Notwithstanding, and in addition
25to, the transfers authorized in subsection (c) of this Section,
26these transfers may be made in an amount not to exceed 4% of

 

 

10000SB1947ham005- 49 -LRB100 09675 JWD 28950 a

1the aggregate amount appropriated to the State's Attorneys
2Appellate Prosecutor within the same treasury fund.
3    (a-3) Further, if an agency receives a separate
4appropriation for employee retirement contributions paid by
5the employer, any transfer by that agency into an appropriation
6for personal services must be accompanied by a corresponding
7transfer into the appropriation for employee retirement
8contributions paid by the employer, in an amount sufficient to
9meet the employer share of the employee contributions required
10to be remitted to the retirement system.
11    (a-4) Long-Term Care Rebalancing. The Governor may
12designate amounts set aside for institutional services
13appropriated from the General Revenue Fund or any other State
14fund that receives monies for long-term care services to be
15transferred to all State agencies responsible for the
16administration of community-based long-term care programs,
17including, but not limited to, community-based long-term care
18programs administered by the Department of Healthcare and
19Family Services, the Department of Human Services, and the
20Department on Aging, provided that the Director of Healthcare
21and Family Services first certifies that the amounts being
22transferred are necessary for the purpose of assisting persons
23in or at risk of being in institutional care to transition to
24community-based settings, including the financial data needed
25to prove the need for the transfer of funds. The total amounts
26transferred shall not exceed 4% in total of the amounts

 

 

10000SB1947ham005- 50 -LRB100 09675 JWD 28950 a

1appropriated from the General Revenue Fund or any other State
2fund that receives monies for long-term care services for each
3fiscal year. A notice of the fund transfer must be made to the
4General Assembly and posted at a minimum on the Department of
5Healthcare and Family Services website, the Governor's Office
6of Management and Budget website, and any other website the
7Governor sees fit. These postings shall serve as notice to the
8General Assembly of the amounts to be transferred. Notice shall
9be given at least 30 days prior to transfer.
10    (b) In addition to the general transfer authority provided
11under subsection (c), the following agencies have the specific
12transfer authority granted in this subsection:
13    The Department of Healthcare and Family Services is
14authorized to make transfers representing savings attributable
15to not increasing grants due to the births of additional
16children from line items for payments of cash grants to line
17items for payments for employment and social services for the
18purposes outlined in subsection (f) of Section 4-2 of the
19Illinois Public Aid Code.
20    The Department of Children and Family Services is
21authorized to make transfers not exceeding 2% of the aggregate
22amount appropriated to it within the same treasury fund for the
23following line items among these same line items: Foster Home
24and Specialized Foster Care and Prevention, Institutions and
25Group Homes and Prevention, and Purchase of Adoption and
26Guardianship Services.

 

 

10000SB1947ham005- 51 -LRB100 09675 JWD 28950 a

1    The Department on Aging is authorized to make transfers not
2exceeding 2% of the aggregate amount appropriated to it within
3the same treasury fund for the following Community Care Program
4line items among these same line items: purchase of services
5covered by the Community Care Program and Comprehensive Case
6Coordination.
7    The State Treasurer is authorized to make transfers among
8line item appropriations from the Capital Litigation Trust
9Fund, with respect to costs incurred in fiscal years 2002 and
102003 only, when the balance remaining in one or more such line
11item appropriations is insufficient for the purpose for which
12the appropriation was made, provided that no such transfer may
13be made unless the amount transferred is no longer required for
14the purpose for which that appropriation was made.
15    The State Board of Education is authorized to make
16transfers from line item appropriations within the same
17treasury fund for General State Aid, and General State Aid -
18Hold Harmless, and Evidence-Based Funding, provided that no
19such transfer may be made unless the amount transferred is no
20longer required for the purpose for which that appropriation
21was made, to the line item appropriation for Transitional
22Assistance when the balance remaining in such line item
23appropriation is insufficient for the purpose for which the
24appropriation was made.
25    The State Board of Education is authorized to make
26transfers between the following line item appropriations

 

 

10000SB1947ham005- 52 -LRB100 09675 JWD 28950 a

1within the same treasury fund: Disabled Student
2Services/Materials (Section 14-13.01 of the School Code),
3Disabled Student Transportation Reimbursement (Section
414-13.01 of the School Code), Disabled Student Tuition -
5Private Tuition (Section 14-7.02 of the School Code),
6Extraordinary Special Education (Section 14-7.02b of the
7School Code), Reimbursement for Free Lunch/Breakfast Program,
8Summer School Payments (Section 18-4.3 of the School Code), and
9Transportation - Regular/Vocational Reimbursement (Section
1029-5 of the School Code). Such transfers shall be made only
11when the balance remaining in one or more such line item
12appropriations is insufficient for the purpose for which the
13appropriation was made and provided that no such transfer may
14be made unless the amount transferred is no longer required for
15the purpose for which that appropriation was made.
16    The Department of Healthcare and Family Services is
17authorized to make transfers not exceeding 4% of the aggregate
18amount appropriated to it, within the same treasury fund, among
19the various line items appropriated for Medical Assistance.
20    (c) The sum of such transfers for an agency in a fiscal
21year shall not exceed 2% of the aggregate amount appropriated
22to it within the same treasury fund for the following objects:
23Personal Services; Extra Help; Student and Inmate
24Compensation; State Contributions to Retirement Systems; State
25Contributions to Social Security; State Contribution for
26Employee Group Insurance; Contractual Services; Travel;

 

 

10000SB1947ham005- 53 -LRB100 09675 JWD 28950 a

1Commodities; Printing; Equipment; Electronic Data Processing;
2Operation of Automotive Equipment; Telecommunications
3Services; Travel and Allowance for Committed, Paroled and
4Discharged Prisoners; Library Books; Federal Matching Grants
5for Student Loans; Refunds; Workers' Compensation,
6Occupational Disease, and Tort Claims; and, in appropriations
7to institutions of higher education, Awards and Grants.
8Notwithstanding the above, any amounts appropriated for
9payment of workers' compensation claims to an agency to which
10the authority to evaluate, administer and pay such claims has
11been delegated by the Department of Central Management Services
12may be transferred to any other expenditure object where such
13amounts exceed the amount necessary for the payment of such
14claims.
15    (c-1) Special provisions for State fiscal year 2003.
16Notwithstanding any other provision of this Section to the
17contrary, for State fiscal year 2003 only, transfers among line
18item appropriations to an agency from the same treasury fund
19may be made provided that the sum of such transfers for an
20agency in State fiscal year 2003 shall not exceed 3% of the
21aggregate amount appropriated to that State agency for State
22fiscal year 2003 for the following objects: personal services,
23except that no transfer may be approved which reduces the
24aggregate appropriations for personal services within an
25agency; extra help; student and inmate compensation; State
26contributions to retirement systems; State contributions to

 

 

10000SB1947ham005- 54 -LRB100 09675 JWD 28950 a

1social security; State contributions for employee group
2insurance; contractual services; travel; commodities;
3printing; equipment; electronic data processing; operation of
4automotive equipment; telecommunications services; travel and
5allowance for committed, paroled, and discharged prisoners;
6library books; federal matching grants for student loans;
7refunds; workers' compensation, occupational disease, and tort
8claims; and, in appropriations to institutions of higher
9education, awards and grants.
10    (c-2) Special provisions for State fiscal year 2005.
11Notwithstanding subsections (a), (a-2), and (c), for State
12fiscal year 2005 only, transfers may be made among any line
13item appropriations from the same or any other treasury fund
14for any objects or purposes, without limitation, when the
15balance remaining in one or more such line item appropriations
16is insufficient for the purpose for which the appropriation was
17made, provided that the sum of those transfers by a State
18agency shall not exceed 4% of the aggregate amount appropriated
19to that State agency for fiscal year 2005.
20    (c-3) Special provisions for State fiscal year 2015.
21Notwithstanding any other provision of this Section, for State
22fiscal year 2015, transfers among line item appropriations to a
23State agency from the same State treasury fund may be made for
24operational or lump sum expenses only, provided that the sum of
25such transfers for a State agency in State fiscal year 2015
26shall not exceed 4% of the aggregate amount appropriated to

 

 

10000SB1947ham005- 55 -LRB100 09675 JWD 28950 a

1that State agency for operational or lump sum expenses for
2State fiscal year 2015. For the purpose of this subsection,
3"operational or lump sum expenses" includes the following
4objects: personal services; extra help; student and inmate
5compensation; State contributions to retirement systems; State
6contributions to social security; State contributions for
7employee group insurance; contractual services; travel;
8commodities; printing; equipment; electronic data processing;
9operation of automotive equipment; telecommunications
10services; travel and allowance for committed, paroled, and
11discharged prisoners; library books; federal matching grants
12for student loans; refunds; workers' compensation,
13occupational disease, and tort claims; lump sum and other
14purposes; and lump sum operations. For the purpose of this
15subsection (c-3), "State agency" does not include the Attorney
16General, the Secretary of State, the Comptroller, the
17Treasurer, or the legislative or judicial branches.
18    (d) Transfers among appropriations made to agencies of the
19Legislative and Judicial departments and to the
20constitutionally elected officers in the Executive branch
21require the approval of the officer authorized in Section 10 of
22this Act to approve and certify vouchers. Transfers among
23appropriations made to the University of Illinois, Southern
24Illinois University, Chicago State University, Eastern
25Illinois University, Governors State University, Illinois
26State University, Northeastern Illinois University, Northern

 

 

10000SB1947ham005- 56 -LRB100 09675 JWD 28950 a

1Illinois University, Western Illinois University, the Illinois
2Mathematics and Science Academy and the Board of Higher
3Education require the approval of the Board of Higher Education
4and the Governor. Transfers among appropriations to all other
5agencies require the approval of the Governor.
6    The officer responsible for approval shall certify that the
7transfer is necessary to carry out the programs and purposes
8for which the appropriations were made by the General Assembly
9and shall transmit to the State Comptroller a certified copy of
10the approval which shall set forth the specific amounts
11transferred so that the Comptroller may change his records
12accordingly. The Comptroller shall furnish the Governor with
13information copies of all transfers approved for agencies of
14the Legislative and Judicial departments and transfers
15approved by the constitutionally elected officials of the
16Executive branch other than the Governor, showing the amounts
17transferred and indicating the dates such changes were entered
18on the Comptroller's records.
19    (e) The State Board of Education, in consultation with the
20State Comptroller, may transfer line item appropriations for
21General State Aid or Evidence-Based Funding between the Common
22School Fund and the Education Assistance Fund. With the advice
23and consent of the Governor's Office of Management and Budget,
24the State Board of Education, in consultation with the State
25Comptroller, may transfer line item appropriations between the
26General Revenue Fund and the Education Assistance Fund for the

 

 

10000SB1947ham005- 57 -LRB100 09675 JWD 28950 a

1following programs:
2        (1) Disabled Student Personnel Reimbursement (Section
3    14-13.01 of the School Code);
4        (2) Disabled Student Transportation Reimbursement
5    (subsection (b) of Section 14-13.01 of the School Code);
6        (3) Disabled Student Tuition - Private Tuition
7    (Section 14-7.02 of the School Code);
8        (4) Extraordinary Special Education (Section 14-7.02b
9    of the School Code);
10        (5) Reimbursement for Free Lunch/Breakfast Programs;
11        (6) Summer School Payments (Section 18-4.3 of the
12    School Code);
13        (7) Transportation - Regular/Vocational Reimbursement
14    (Section 29-5 of the School Code);
15        (8) Regular Education Reimbursement (Section 18-3 of
16    the School Code); and
17        (9) Special Education Reimbursement (Section 14-7.03
18    of the School Code).
19(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
20eff. 3-26-15.)
 
21    Section 920. The Illinois Income Tax Act is amended by
22adding Section 224 as follows:
 
23    (35 ILCS 5/224 new)
24    Sec. 224. Invest in Kids credit.

 

 

10000SB1947ham005- 58 -LRB100 09675 JWD 28950 a

1    (a) For taxable years beginning on or after January 1, 2018
2and ending before January 1, 2023, each taxpayer for whom a tax
3credit has been awarded by the Department under the Invest in
4Kids Act is entitled to a credit against the tax imposed under
5subsections (a) and (b) of Section 201 of this Act in an amount
6equal to the amount awarded under the Invest in Kids Act.
7    (b) For partners, shareholders of subchapter S
8corporations, and owners of limited liability companies, if the
9liability company is treated as a partnership for purposes of
10federal and State income taxation, the credit under this
11Section shall be determined in accordance with the
12determination of income and distributive share of income under
13Sections 702 and 704 and subchapter S of the Internal Revenue
14Code.
15    (c) The credit may not be carried back and may not reduce
16the taxpayer's liability to less than zero. If the amount of
17the credit exceeds the tax liability for the year, the excess
18may be carried forward and applied to the tax liability of the
195 taxable years following the excess credit year. The tax
20credit shall be applied to the earliest year for which there is
21a tax liability. If there are credits for more than one year
22that are available to offset the liability, the earlier credit
23shall be applied first.
24    (d) A tax credit awarded by the Department under the Invest
25in Kids Act may not be claimed for any qualified contribution
26for which the taxpayer claims a federal income tax deduction.
 

 

 

10000SB1947ham005- 59 -LRB100 09675 JWD 28950 a

1    Section 925. The Property Tax Code is amended by changing
2Sections 18-185, 18-200, and 18-249 and by adding Section
318-206 as follows:
 
4    (35 ILCS 200/18-185)
5    Sec. 18-185. Short title; definitions. This Division 5 may
6be cited as the Property Tax Extension Limitation Law. As used
7in this Division 5:
8    "Consumer Price Index" means the Consumer Price Index for
9All Urban Consumers for all items published by the United
10States Department of Labor.
11    "Extension limitation" means (a) the lesser of 5% or the
12percentage increase in the Consumer Price Index during the
1312-month calendar year preceding the levy year or (b) the rate
14of increase approved by voters under Section 18-205.
15    "Affected county" means a county of 3,000,000 or more
16inhabitants or a county contiguous to a county of 3,000,000 or
17more inhabitants.
18    "Taxing district" has the same meaning provided in Section
191-150, except as otherwise provided in this Section. For the
201991 through 1994 levy years only, "taxing district" includes
21only each non-home rule taxing district having the majority of
22its 1990 equalized assessed value within any county or counties
23contiguous to a county with 3,000,000 or more inhabitants.
24Beginning with the 1995 levy year, "taxing district" includes

 

 

10000SB1947ham005- 60 -LRB100 09675 JWD 28950 a

1only each non-home rule taxing district subject to this Law
2before the 1995 levy year and each non-home rule taxing
3district not subject to this Law before the 1995 levy year
4having the majority of its 1994 equalized assessed value in an
5affected county or counties. Beginning with the levy year in
6which this Law becomes applicable to a taxing district as
7provided in Section 18-213, "taxing district" also includes
8those taxing districts made subject to this Law as provided in
9Section 18-213.
10    "Aggregate extension" for taxing districts to which this
11Law applied before the 1995 levy year means the annual
12corporate extension for the taxing district and those special
13purpose extensions that are made annually for the taxing
14district, excluding special purpose extensions: (a) made for
15the taxing district to pay interest or principal on general
16obligation bonds that were approved by referendum; (b) made for
17any taxing district to pay interest or principal on general
18obligation bonds issued before October 1, 1991; (c) made for
19any taxing district to pay interest or principal on bonds
20issued to refund or continue to refund those bonds issued
21before October 1, 1991; (d) made for any taxing district to pay
22interest or principal on bonds issued to refund or continue to
23refund bonds issued after October 1, 1991 that were approved by
24referendum; (e) made for any taxing district to pay interest or
25principal on revenue bonds issued before October 1, 1991 for
26payment of which a property tax levy or the full faith and

 

 

10000SB1947ham005- 61 -LRB100 09675 JWD 28950 a

1credit of the unit of local government is pledged; however, a
2tax for the payment of interest or principal on those bonds
3shall be made only after the governing body of the unit of
4local government finds that all other sources for payment are
5insufficient to make those payments; (f) made for payments
6under a building commission lease when the lease payments are
7for the retirement of bonds issued by the commission before
8October 1, 1991, to pay for the building project; (g) made for
9payments due under installment contracts entered into before
10October 1, 1991; (h) made for payments of principal and
11interest on bonds issued under the Metropolitan Water
12Reclamation District Act to finance construction projects
13initiated before October 1, 1991; (i) made for payments of
14principal and interest on limited bonds, as defined in Section
153 of the Local Government Debt Reform Act, in an amount not to
16exceed the debt service extension base less the amount in items
17(b), (c), (e), and (h) of this definition for non-referendum
18obligations, except obligations initially issued pursuant to
19referendum; (j) made for payments of principal and interest on
20bonds issued under Section 15 of the Local Government Debt
21Reform Act; (k) made by a school district that participates in
22the Special Education District of Lake County, created by
23special education joint agreement under Section 10-22.31 of the
24School Code, for payment of the school district's share of the
25amounts required to be contributed by the Special Education
26District of Lake County to the Illinois Municipal Retirement

 

 

10000SB1947ham005- 62 -LRB100 09675 JWD 28950 a

1Fund under Article 7 of the Illinois Pension Code; the amount
2of any extension under this item (k) shall be certified by the
3school district to the county clerk; (l) made to fund expenses
4of providing joint recreational programs for persons with
5disabilities under Section 5-8 of the Park District Code or
6Section 11-95-14 of the Illinois Municipal Code; (m) made for
7temporary relocation loan repayment purposes pursuant to
8Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
9payment of principal and interest on any bonds issued under the
10authority of Section 17-2.2d of the School Code; (o) made for
11contributions to a firefighter's pension fund created under
12Article 4 of the Illinois Pension Code, to the extent of the
13amount certified under item (5) of Section 4-134 of the
14Illinois Pension Code; and (p) made for road purposes in the
15first year after a township assumes the rights, powers, duties,
16assets, property, liabilities, obligations, and
17responsibilities of a road district abolished under the
18provisions of Section 6-133 of the Illinois Highway Code.
19    "Aggregate extension" for the taxing districts to which
20this Law did not apply before the 1995 levy year (except taxing
21districts subject to this Law in accordance with Section
2218-213) means the annual corporate extension for the taxing
23district and those special purpose extensions that are made
24annually for the taxing district, excluding special purpose
25extensions: (a) made for the taxing district to pay interest or
26principal on general obligation bonds that were approved by

 

 

10000SB1947ham005- 63 -LRB100 09675 JWD 28950 a

1referendum; (b) made for any taxing district to pay interest or
2principal on general obligation bonds issued before March 1,
31995; (c) made for any taxing district to pay interest or
4principal on bonds issued to refund or continue to refund those
5bonds issued before March 1, 1995; (d) made for any taxing
6district to pay interest or principal on bonds issued to refund
7or continue to refund bonds issued after March 1, 1995 that
8were approved by referendum; (e) made for any taxing district
9to pay interest or principal on revenue bonds issued before
10March 1, 1995 for payment of which a property tax levy or the
11full faith and credit of the unit of local government is
12pledged; however, a tax for the payment of interest or
13principal on those bonds shall be made only after the governing
14body of the unit of local government finds that all other
15sources for payment are insufficient to make those payments;
16(f) made for payments under a building commission lease when
17the lease payments are for the retirement of bonds issued by
18the commission before March 1, 1995 to pay for the building
19project; (g) made for payments due under installment contracts
20entered into before March 1, 1995; (h) made for payments of
21principal and interest on bonds issued under the Metropolitan
22Water Reclamation District Act to finance construction
23projects initiated before October 1, 1991; (h-4) made for
24stormwater management purposes by the Metropolitan Water
25Reclamation District of Greater Chicago under Section 12 of the
26Metropolitan Water Reclamation District Act; (i) made for

 

 

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1payments of principal and interest on limited bonds, as defined
2in Section 3 of the Local Government Debt Reform Act, in an
3amount not to exceed the debt service extension base less the
4amount in items (b), (c), and (e) of this definition for
5non-referendum obligations, except obligations initially
6issued pursuant to referendum and bonds described in subsection
7(h) of this definition; (j) made for payments of principal and
8interest on bonds issued under Section 15 of the Local
9Government Debt Reform Act; (k) made for payments of principal
10and interest on bonds authorized by Public Act 88-503 and
11issued under Section 20a of the Chicago Park District Act for
12aquarium or museum projects; (l) made for payments of principal
13and interest on bonds authorized by Public Act 87-1191 or
1493-601 and (i) issued pursuant to Section 21.2 of the Cook
15County Forest Preserve District Act, (ii) issued under Section
1642 of the Cook County Forest Preserve District Act for
17zoological park projects, or (iii) issued under Section 44.1 of
18the Cook County Forest Preserve District Act for botanical
19gardens projects; (m) made pursuant to Section 34-53.5 of the
20School Code, whether levied annually or not; (n) made to fund
21expenses of providing joint recreational programs for persons
22with disabilities under Section 5-8 of the Park District Code
23or Section 11-95-14 of the Illinois Municipal Code; (o) made by
24the Chicago Park District for recreational programs for persons
25with disabilities under subsection (c) of Section 7.06 of the
26Chicago Park District Act; (p) made for contributions to a

 

 

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1firefighter's pension fund created under Article 4 of the
2Illinois Pension Code, to the extent of the amount certified
3under item (5) of Section 4-134 of the Illinois Pension Code;
4(q) made by Ford Heights School District 169 under Section
517-9.02 of the School Code; and (r) made for the purpose of
6making employer contributions to the Public School Teachers'
7Pension and Retirement Fund of Chicago under Section 34-53 of
8the School Code.
9    "Aggregate extension" for all taxing districts to which
10this Law applies in accordance with Section 18-213, except for
11those taxing districts subject to paragraph (2) of subsection
12(e) of Section 18-213, means the annual corporate extension for
13the taxing district and those special purpose extensions that
14are made annually for the taxing district, excluding special
15purpose extensions: (a) made for the taxing district to pay
16interest or principal on general obligation bonds that were
17approved by referendum; (b) made for any taxing district to pay
18interest or principal on general obligation bonds issued before
19the date on which the referendum making this Law applicable to
20the taxing district is held; (c) made for any taxing district
21to pay interest or principal on bonds issued to refund or
22continue to refund those bonds issued before the date on which
23the referendum making this Law applicable to the taxing
24district is held; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after the date on which the referendum

 

 

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1making this Law applicable to the taxing district is held if
2the bonds were approved by referendum after the date on which
3the referendum making this Law applicable to the taxing
4district is held; (e) made for any taxing district to pay
5interest or principal on revenue bonds issued before the date
6on which the referendum making this Law applicable to the
7taxing district is held for payment of which a property tax
8levy or the full faith and credit of the unit of local
9government is pledged; however, a tax for the payment of
10interest or principal on those bonds shall be made only after
11the governing body of the unit of local government finds that
12all other sources for payment are insufficient to make those
13payments; (f) made for payments under a building commission
14lease when the lease payments are for the retirement of bonds
15issued by the commission before the date on which the
16referendum making this Law applicable to the taxing district is
17held to pay for the building project; (g) made for payments due
18under installment contracts entered into before the date on
19which the referendum making this Law applicable to the taxing
20district is held; (h) made for payments of principal and
21interest on limited bonds, as defined in Section 3 of the Local
22Government Debt Reform Act, in an amount not to exceed the debt
23service extension base less the amount in items (b), (c), and
24(e) of this definition for non-referendum obligations, except
25obligations initially issued pursuant to referendum; (i) made
26for payments of principal and interest on bonds issued under

 

 

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1Section 15 of the Local Government Debt Reform Act; (j) made
2for a qualified airport authority to pay interest or principal
3on general obligation bonds issued for the purpose of paying
4obligations due under, or financing airport facilities
5required to be acquired, constructed, installed or equipped
6pursuant to, contracts entered into before March 1, 1996 (but
7not including any amendments to such a contract taking effect
8on or after that date); (k) made to fund expenses of providing
9joint recreational programs for persons with disabilities
10under Section 5-8 of the Park District Code or Section 11-95-14
11of the Illinois Municipal Code; (l) made for contributions to a
12firefighter's pension fund created under Article 4 of the
13Illinois Pension Code, to the extent of the amount certified
14under item (5) of Section 4-134 of the Illinois Pension Code;
15and (m) made for the taxing district to pay interest or
16principal on general obligation bonds issued pursuant to
17Section 19-3.10 of the School Code.
18    "Aggregate extension" for all taxing districts to which
19this Law applies in accordance with paragraph (2) of subsection
20(e) of Section 18-213 means the annual corporate extension for
21the taxing district and those special purpose extensions that
22are made annually for the taxing district, excluding special
23purpose extensions: (a) made for the taxing district to pay
24interest or principal on general obligation bonds that were
25approved by referendum; (b) made for any taxing district to pay
26interest or principal on general obligation bonds issued before

 

 

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1the effective date of this amendatory Act of 1997; (c) made for
2any taxing district to pay interest or principal on bonds
3issued to refund or continue to refund those bonds issued
4before the effective date of this amendatory Act of 1997; (d)
5made for any taxing district to pay interest or principal on
6bonds issued to refund or continue to refund bonds issued after
7the effective date of this amendatory Act of 1997 if the bonds
8were approved by referendum after the effective date of this
9amendatory Act of 1997; (e) made for any taxing district to pay
10interest or principal on revenue bonds issued before the
11effective date of this amendatory Act of 1997 for payment of
12which a property tax levy or the full faith and credit of the
13unit of local government is pledged; however, a tax for the
14payment of interest or principal on those bonds shall be made
15only after the governing body of the unit of local government
16finds that all other sources for payment are insufficient to
17make those payments; (f) made for payments under a building
18commission lease when the lease payments are for the retirement
19of bonds issued by the commission before the effective date of
20this amendatory Act of 1997 to pay for the building project;
21(g) made for payments due under installment contracts entered
22into before the effective date of this amendatory Act of 1997;
23(h) made for payments of principal and interest on limited
24bonds, as defined in Section 3 of the Local Government Debt
25Reform Act, in an amount not to exceed the debt service
26extension base less the amount in items (b), (c), and (e) of

 

 

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1this definition for non-referendum obligations, except
2obligations initially issued pursuant to referendum; (i) made
3for payments of principal and interest on bonds issued under
4Section 15 of the Local Government Debt Reform Act; (j) made
5for a qualified airport authority to pay interest or principal
6on general obligation bonds issued for the purpose of paying
7obligations due under, or financing airport facilities
8required to be acquired, constructed, installed or equipped
9pursuant to, contracts entered into before March 1, 1996 (but
10not including any amendments to such a contract taking effect
11on or after that date); (k) made to fund expenses of providing
12joint recreational programs for persons with disabilities
13under Section 5-8 of the Park District Code or Section 11-95-14
14of the Illinois Municipal Code; and (l) made for contributions
15to a firefighter's pension fund created under Article 4 of the
16Illinois Pension Code, to the extent of the amount certified
17under item (5) of Section 4-134 of the Illinois Pension Code.
18    "Debt service extension base" means an amount equal to that
19portion of the extension for a taxing district for the 1994
20levy year, or for those taxing districts subject to this Law in
21accordance with Section 18-213, except for those subject to
22paragraph (2) of subsection (e) of Section 18-213, for the levy
23year in which the referendum making this Law applicable to the
24taxing district is held, or for those taxing districts subject
25to this Law in accordance with paragraph (2) of subsection (e)
26of Section 18-213 for the 1996 levy year, constituting an

 

 

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1extension for payment of principal and interest on bonds issued
2by the taxing district without referendum, but not including
3excluded non-referendum bonds. For park districts (i) that were
4first subject to this Law in 1991 or 1995 and (ii) whose
5extension for the 1994 levy year for the payment of principal
6and interest on bonds issued by the park district without
7referendum (but not including excluded non-referendum bonds)
8was less than 51% of the amount for the 1991 levy year
9constituting an extension for payment of principal and interest
10on bonds issued by the park district without referendum (but
11not including excluded non-referendum bonds), "debt service
12extension base" means an amount equal to that portion of the
13extension for the 1991 levy year constituting an extension for
14payment of principal and interest on bonds issued by the park
15district without referendum (but not including excluded
16non-referendum bonds). A debt service extension base
17established or increased at any time pursuant to any provision
18of this Law, except Section 18-212, shall be increased each
19year commencing with the later of (i) the 2009 levy year or
20(ii) the first levy year in which this Law becomes applicable
21to the taxing district, by the lesser of 5% or the percentage
22increase in the Consumer Price Index during the 12-month
23calendar year preceding the levy year. The debt service
24extension base may be established or increased as provided
25under Section 18-212. "Excluded non-referendum bonds" means
26(i) bonds authorized by Public Act 88-503 and issued under

 

 

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1Section 20a of the Chicago Park District Act for aquarium and
2museum projects; (ii) bonds issued under Section 15 of the
3Local Government Debt Reform Act; or (iii) refunding
4obligations issued to refund or to continue to refund
5obligations initially issued pursuant to referendum.
6    "Special purpose extensions" include, but are not limited
7to, extensions for levies made on an annual basis for
8unemployment and workers' compensation, self-insurance,
9contributions to pension plans, and extensions made pursuant to
10Section 6-601 of the Illinois Highway Code for a road
11district's permanent road fund whether levied annually or not.
12The extension for a special service area is not included in the
13aggregate extension.
14    "Aggregate extension base" means the taxing district's
15last preceding aggregate extension as adjusted under Sections
1618-135, 18-215, and 18-230, and 18-206. An adjustment under
17Section 18-135 shall be made for the 2007 levy year and all
18subsequent levy years whenever one or more counties within
19which a taxing district is located (i) used estimated
20valuations or rates when extending taxes in the taxing district
21for the last preceding levy year that resulted in the over or
22under extension of taxes, or (ii) increased or decreased the
23tax extension for the last preceding levy year as required by
24Section 18-135(c). Whenever an adjustment is required under
25Section 18-135, the aggregate extension base of the taxing
26district shall be equal to the amount that the aggregate

 

 

10000SB1947ham005- 72 -LRB100 09675 JWD 28950 a

1extension of the taxing district would have been for the last
2preceding levy year if either or both (i) actual, rather than
3estimated, valuations or rates had been used to calculate the
4extension of taxes for the last levy year, or (ii) the tax
5extension for the last preceding levy year had not been
6adjusted as required by subsection (c) of Section 18-135.
7    Notwithstanding any other provision of law, for levy year
82012, the aggregate extension base for West Northfield School
9District No. 31 in Cook County shall be $12,654,592.
10    "Levy year" has the same meaning as "year" under Section
111-155.
12    "New property" means (i) the assessed value, after final
13board of review or board of appeals action, of new improvements
14or additions to existing improvements on any parcel of real
15property that increase the assessed value of that real property
16during the levy year multiplied by the equalization factor
17issued by the Department under Section 17-30, (ii) the assessed
18value, after final board of review or board of appeals action,
19of real property not exempt from real estate taxation, which
20real property was exempt from real estate taxation for any
21portion of the immediately preceding levy year, multiplied by
22the equalization factor issued by the Department under Section
2317-30, including the assessed value, upon final stabilization
24of occupancy after new construction is complete, of any real
25property located within the boundaries of an otherwise or
26previously exempt military reservation that is intended for

 

 

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1residential use and owned by or leased to a private corporation
2or other entity, (iii) in counties that classify in accordance
3with Section 4 of Article IX of the Illinois Constitution, an
4incentive property's additional assessed value resulting from
5a scheduled increase in the level of assessment as applied to
6the first year final board of review market value, and (iv) any
7increase in assessed value due to oil or gas production from an
8oil or gas well required to be permitted under the Hydraulic
9Fracturing Regulatory Act that was not produced in or accounted
10for during the previous levy year. In addition, the county
11clerk in a county containing a population of 3,000,000 or more
12shall include in the 1997 recovered tax increment value for any
13school district, any recovered tax increment value that was
14applicable to the 1995 tax year calculations.
15    "Qualified airport authority" means an airport authority
16organized under the Airport Authorities Act and located in a
17county bordering on the State of Wisconsin and having a
18population in excess of 200,000 and not greater than 500,000.
19    "Recovered tax increment value" means, except as otherwise
20provided in this paragraph, the amount of the current year's
21equalized assessed value, in the first year after a
22municipality terminates the designation of an area as a
23redevelopment project area previously established under the
24Tax Increment Allocation Development Act in the Illinois
25Municipal Code, previously established under the Industrial
26Jobs Recovery Law in the Illinois Municipal Code, previously

 

 

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1established under the Economic Development Project Area Tax
2Increment Act of 1995, or previously established under the
3Economic Development Area Tax Increment Allocation Act, of each
4taxable lot, block, tract, or parcel of real property in the
5redevelopment project area over and above the initial equalized
6assessed value of each property in the redevelopment project
7area. For the taxes which are extended for the 1997 levy year,
8the recovered tax increment value for a non-home rule taxing
9district that first became subject to this Law for the 1995
10levy year because a majority of its 1994 equalized assessed
11value was in an affected county or counties shall be increased
12if a municipality terminated the designation of an area in 1993
13as a redevelopment project area previously established under
14the Tax Increment Allocation Development Act in the Illinois
15Municipal Code, previously established under the Industrial
16Jobs Recovery Law in the Illinois Municipal Code, or previously
17established under the Economic Development Area Tax Increment
18Allocation Act, by an amount equal to the 1994 equalized
19assessed value of each taxable lot, block, tract, or parcel of
20real property in the redevelopment project area over and above
21the initial equalized assessed value of each property in the
22redevelopment project area. In the first year after a
23municipality removes a taxable lot, block, tract, or parcel of
24real property from a redevelopment project area established
25under the Tax Increment Allocation Development Act in the
26Illinois Municipal Code, the Industrial Jobs Recovery Law in

 

 

10000SB1947ham005- 75 -LRB100 09675 JWD 28950 a

1the Illinois Municipal Code, or the Economic Development Area
2Tax Increment Allocation Act, "recovered tax increment value"
3means the amount of the current year's equalized assessed value
4of each taxable lot, block, tract, or parcel of real property
5removed from the redevelopment project area over and above the
6initial equalized assessed value of that real property before
7removal from the redevelopment project area.
8    Except as otherwise provided in this Section, "limiting
9rate" means a fraction the numerator of which is the last
10preceding aggregate extension base times an amount equal to one
11plus the extension limitation defined in this Section and the
12denominator of which is the current year's equalized assessed
13value of all real property in the territory under the
14jurisdiction of the taxing district during the prior levy year.
15For those taxing districts that reduced their aggregate
16extension for the last preceding levy year, except for school
17districts that reduced their extension for educational
18purposes pursuant to Section 18-206, the highest aggregate
19extension in any of the last 3 preceding levy years shall be
20used for the purpose of computing the limiting rate. The
21denominator shall not include new property or the recovered tax
22increment value. If a new rate, a rate decrease, or a limiting
23rate increase has been approved at an election held after March
2421, 2006, then (i) the otherwise applicable limiting rate shall
25be increased by the amount of the new rate or shall be reduced
26by the amount of the rate decrease, as the case may be, or (ii)

 

 

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1in the case of a limiting rate increase, the limiting rate
2shall be equal to the rate set forth in the proposition
3approved by the voters for each of the years specified in the
4proposition, after which the limiting rate of the taxing
5district shall be calculated as otherwise provided. In the case
6of a taxing district that obtained referendum approval for an
7increased limiting rate on March 20, 2012, the limiting rate
8for tax year 2012 shall be the rate that generates the
9approximate total amount of taxes extendable for that tax year,
10as set forth in the proposition approved by the voters; this
11rate shall be the final rate applied by the county clerk for
12the aggregate of all capped funds of the district for tax year
132012.
14(Source: P.A. 98-6, eff. 3-29-13; 98-23, eff. 6-17-13; 99-143,
15eff. 7-27-15; 99-521, eff. 6-1-17.)
 
16    (35 ILCS 200/18-200)
17    Sec. 18-200. School Code. A school district's State aid
18shall not be reduced under the computation under subsections
195(a) through 5(h) of Part A of Section 18-8 of the School Code
20or under Section 18-8.15 of the School Code due to the
21operating tax rate falling from above the minimum requirement
22of that Section of the School Code to below the minimum
23requirement of that Section of the School Code due to the
24operation of this Law.
25(Source: P.A. 87-17; 88-455.)
 

 

 

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1    (35 ILCS 200/18-206 new)
2    Sec. 18-206. Decrease in extension for educational
3purposes.
4    (a) Notwithstanding any other provision of law, for those
5school districts whose adequacy targets, as defined in Section
618-8.15 of this Code, exceed 110% for the school year that
7begins during the calendar year immediately preceding the levy
8year for which the reduction under this Section is sought, the
9question of whether the school district shall reduce its
10extension for educational purposes for the levy year in which
11the election is held to an amount that is less than the
12extension for educational purposes for the immediately
13preceding levy year shall be submitted to the voters of the
14school district at the next consolidated election but only upon
15submission of a petition signed by not fewer than 10% of the
16registered voters in the school district. In no event shall the
17reduced extension be more than 10% lower than the amount
18extended for educational purposes in the previous levy year,
19and in no event shall the reduction cause the school district's
20adequacy target to fall below 110% for the levy year for which
21the reduction is sought.
22    (b) The petition shall be filed with the applicable
23election authority, as defined in Section 1-3 of the Election
24Code, or, in the case of multiple election authorities, with
25the State Board of Elections, not more than 10 months nor less

 

 

10000SB1947ham005- 78 -LRB100 09675 JWD 28950 a

1than 6 months prior to the election at which the question is to
2be submitted to the voters, and its validity shall be
3determined as provided by Article 28 of the Election Code and
4general election law. The election authority or Board, as
5applicable, shall certify the question and the proper election
6authority or authorities shall submit the question to the
7voters. Except as otherwise provided in this Section, this
8referendum shall be subject to all other general election law
9requirements.
10    (c) The proposition seeking to reduce the extension for
11educational purposes shall be in substantially the following
12form:
13        Shall the amount extended for educational purposes by
14    (school district) be reduced from (previous levy year's
15    extension) to (proposed extension) for (levy year), but in
16    no event lower than the amount required to maintain an
17    adequacy target of 110%?
18    Votes shall be recorded as "Yes" or "No".
19    If a majority of all votes cast on the proposition are in
20favor of the proposition, then, for the levy year in which the
21election is held, the amount extended by the school district
22for educational purposes shall be reduced as provided in the
23referendum; however, in no event shall the reduction exceed the
24amount that would cause the school district to have an adequacy
25target of 110% for the applicable school year.
26    Once the question is submitted to the voters, then the

 

 

10000SB1947ham005- 79 -LRB100 09675 JWD 28950 a

1question may not be submitted again for the same school
2district at any of the next 2 consolidated elections.
3    (d) For school districts that approve a reduction under
4this Section, the county clerk shall extend a rate for
5educational purposes that is no greater than the limiting rate
6for educational purposes. If the school district is otherwise
7subject to this Law for the applicable levy year, then, for the
8levy year in which the reduction occurs, the county clerk shall
9calculate separate limiting rates for educational purposes and
10for the aggregate of the school district's other funds.
11    As used in this Section:
12    "School district" means each school district in the State,
13regardless of whether or not that school district is otherwise
14subject to this Law.
15    "Limiting rate for educational purposes" means a fraction
16the numerator of which is the greater of (i) the amount
17approved by the voters in the referendum under subsection (c)
18of this Section or (ii) the amount that would cause the school
19district to have an adequacy target of 110% for the applicable
20school year, but in no event more than the school district's
21extension for educational purposes in the immediately
22preceding levy year, and the denominator of which is the
23current year's equalized assessed value of all real property
24under the jurisdiction of the school district during the prior
25levy year.
 

 

 

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1    (35 ILCS 200/18-249)
2    Sec. 18-249. Miscellaneous provisions.
3    (a) Certification of new property. For the 1994 levy year,
4the chief county assessment officer shall certify to the county
5clerk, after all changes by the board of review or board of
6appeals, as the case may be, the assessed value of new property
7by taxing district for the 1994 levy year under rules
8promulgated by the Department.
9    (b) School Code. A school district's State aid shall not be
10reduced under the computation under subsections 5(a) through
115(h) of Part A of Section 18-8 of the School Code or under
12Section 18-8.15 of the School Code due to the operating tax
13rate falling from above the minimum requirement of that Section
14of the School Code to below the minimum requirement of that
15Section of the School Code due to the operation of this Law.
16    (c) Rules. The Department shall make and promulgate
17reasonable rules relating to the administration of the purposes
18and provisions of Sections 18-246 through 18-249 as may be
19necessary or appropriate.
20(Source: P.A. 89-1, eff. 2-12-95.)
 
21    Section 930. The Illinois Pension Code is amended by
22changing Section 17-127 as follows:
 
23    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
24    Sec. 17-127. Financing; revenues for the Fund.

 

 

10000SB1947ham005- 81 -LRB100 09675 JWD 28950 a

1    (a) The revenues for the Fund shall consist of: (1) amounts
2paid into the Fund by contributors thereto and from employer
3contributions and State appropriations in accordance with this
4Article; (2) amounts contributed to the Fund by an Employer;
5(3) amounts contributed to the Fund pursuant to any law now in
6force or hereafter to be enacted; (4) contributions from any
7other source; and (5) the earnings on investments.
8    (b) The General Assembly finds that for many years the
9State has contributed to the Fund an annual amount that is
10between 20% and 30% of the amount of the annual State
11contribution to the Article 16 retirement system, and the
12General Assembly declares that it is its goal and intention to
13continue this level of contribution to the Fund in the future.
14    (c) Beginning in State fiscal year 1999, the State shall
15include in its annual contribution to the Fund an additional
16amount equal to 0.544% of the Fund's total teacher payroll;
17except that this additional contribution need not be made in a
18fiscal year if the Board has certified in the previous fiscal
19year that the Fund is at least 90% funded, based on actuarial
20determinations. These additional State contributions are
21intended to offset a portion of the cost to the Fund of the
22increases in retirement benefits resulting from this
23amendatory Act of 1998.
24    (d) In addition to any other contribution required under
25this Article, including the contribution required under
26subsection (c), the State shall contribute to the Fund the

 

 

10000SB1947ham005- 82 -LRB100 09675 JWD 28950 a

1following amounts:
2        (1) For State fiscal year 2018, the State shall
3    contribute $221,300,000 for the employer normal cost for
4    fiscal year 2018 and the amount allowed under paragraph (3)
5    of Section 17-142.1 of this Code to defray health insurance
6    costs. Funds for this paragraph (1) shall come from funds
7    appropriated for Evidence-Based Funding pursuant to
8    Section 18-8.15 of the School Code.
9        (2) Beginning in State fiscal year 2019, the State
10    shall contribute for each fiscal year an amount to be
11    determined by the Fund, equal to the employer normal cost
12    for that fiscal year, plus the amount allowed pursuant to
13    paragraph (3) of Section 17-142.1 to defray health
14    insurance costs.
15    (e) The Board shall determine the amount of State
16contributions required for each fiscal year on the basis of the
17actuarial tables and other assumptions adopted by the Board and
18the recommendations of the actuary. On or before November 1 of
19each year, beginning November 1, 2017, the Board shall submit
20to the State Actuary, the Governor, and the General Assembly a
21proposed certification of the amount of the required State
22contribution to the Fund for the next fiscal year, along with
23all of the actuarial assumptions, calculations, and data upon
24which that proposed certification is based.
25    On or before January 1 of each year, beginning January 1,
262018, the State Actuary shall issue a preliminary report

 

 

10000SB1947ham005- 83 -LRB100 09675 JWD 28950 a

1concerning the proposed certification and identifying, if
2necessary, recommended changes in actuarial assumptions that
3the Board must consider before finalizing its certification of
4the required State contributions.
5    (f) On or before January 15, 2018 and each January 15
6thereafter, the Board shall certify to the Governor and the
7General Assembly the amount of the required State contribution
8for the next fiscal year. The certification shall include a
9copy of the actuarial recommendations upon which it is based
10and shall specifically identify the Fund's projected employer
11normal cost for that fiscal year. The Board's certification
12must note any deviations from the State Actuary's recommended
13changes, the reason or reasons for not following the State
14Actuary's recommended changes, and the fiscal impact of not
15following the State Actuary's recommended changes on the
16required State contribution.
17    For the purposes of this Article, including issuing
18vouchers, and for the purposes of subsection (h) of Section 1.1
19of the State Pension Funds Continuing Appropriation Act, the
20State contribution specified for State fiscal year 2018 shall
21be deemed to have been certified, by operation of law and
22without official action by the Board or the State Actuary, in
23the amount provided in subsection (c) and subsection (d) of
24this Section.
25    (g) For State fiscal year 2018, the State Board of
26Education shall submit vouchers, as directed by the Board, for

 

 

10000SB1947ham005- 84 -LRB100 09675 JWD 28950 a

1payment of State contributions to the Fund for the required
2annual State contribution under subsection (d) of this Section.
3These vouchers shall be paid by the State Comptroller and
4Treasurer by warrants drawn on the amount appropriated to the
5State Board of Education from the Common School Fund in Section
65 of Article 97 of Public Act 100-21. If State appropriations
7for State fiscal year 2018 are less than the amount lawfully
8vouchered under this subsection, the difference shall be paid
9from the Common School Fund under the continuing appropriation
10authority provided in Section 1.1 of the State Pension Funds
11Continuing Appropriation Act.
12    (h) For State fiscal year 2018, the Board shall submit
13vouchers for the payment of State contributions to the Fund for
14the required annual State contribution under subsection (c) of
15this Section. Beginning in State fiscal year 2019, the Board
16shall submit vouchers for payment of State contributions to the
17Fund for the required annual State contribution under
18subsections (c) and (d) of this Section. These vouchers shall
19be paid by the State Comptroller and Treasurer by warrants
20drawn on the funds appropriated to the Fund for that fiscal
21year. If State appropriations to the Fund for the applicable
22fiscal year are less than the amount lawfully vouchered under
23this subsection, the difference shall be paid from the Common
24School Fund under the continuing appropriation authority
25provided in Section 1.1 of the State Pension Funds Continuing
26Appropriation Act.

 

 

10000SB1947ham005- 85 -LRB100 09675 JWD 28950 a

1(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
290-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
3    Section 935. The State Pension Funds Continuing
4Appropriation Act is amended by changing Section 1.1 as
5follows:
 
6    (40 ILCS 15/1.1)
7    Sec. 1.1. Appropriations to certain retirement systems.
8    (a) There is hereby appropriated from the General Revenue
9Fund to the General Assembly Retirement System, on a continuing
10monthly basis, the amount, if any, by which the total available
11amount of all other appropriations to that retirement system
12for the payment of State contributions is less than the total
13amount of the vouchers for required State contributions
14lawfully submitted by the retirement system for that month
15under Section 2-134 of the Illinois Pension Code.
16    (b) There is hereby appropriated from the General Revenue
17Fund to the State Universities Retirement System, on a
18continuing monthly basis, the amount, if any, by which the
19total available amount of all other appropriations to that
20retirement system for the payment of State contributions,
21including any deficiency in the required contributions of the
22optional retirement program established under Section 15-158.2
23of the Illinois Pension Code, is less than the total amount of
24the vouchers for required State contributions lawfully

 

 

10000SB1947ham005- 86 -LRB100 09675 JWD 28950 a

1submitted by the retirement system for that month under Section
215-165 of the Illinois Pension Code.
3    (c) There is hereby appropriated from the Common School
4Fund to the Teachers' Retirement System of the State of
5Illinois, on a continuing monthly basis, the amount, if any, by
6which the total available amount of all other appropriations to
7that retirement system for the payment of State contributions
8is less than the total amount of the vouchers for required
9State contributions lawfully submitted by the retirement
10system for that month under Section 16-158 of the Illinois
11Pension Code.
12    (d) There is hereby appropriated from the General Revenue
13Fund to the Judges Retirement System of Illinois, on a
14continuing monthly basis, the amount, if any, by which the
15total available amount of all other appropriations to that
16retirement system for the payment of State contributions is
17less than the total amount of the vouchers for required State
18contributions lawfully submitted by the retirement system for
19that month under Section 18-140 of the Illinois Pension Code.
20    (e) The continuing appropriations provided by subsections
21(a), (b), (c), and (d) of this Section shall first be available
22in State fiscal year 1996. The continuing appropriations
23provided by subsection (h) of this Section shall first be
24available as provided in that subsection (h).
25    (f) For State fiscal year 2010 only, the continuing
26appropriations provided by this Section are equal to the amount

 

 

10000SB1947ham005- 87 -LRB100 09675 JWD 28950 a

1certified by each System on or before December 31, 2008, less
2(i) the gross proceeds of the bonds sold in fiscal year 2010
3under the authorization contained in subsection (a) of Section
47.2 of the General Obligation Bond Act and (ii) any amounts
5received from the State Pensions Fund.
6    (g) For State fiscal year 2011 only, the continuing
7appropriations provided by this Section are equal to the amount
8certified by each System on or before April 1, 2011, less (i)
9the gross proceeds of the bonds sold in fiscal year 2011 under
10the authorization contained in subsection (a) of Section 7.2 of
11the General Obligation Bond Act and (ii) any amounts received
12from the State Pensions Fund.
13    (h) There is hereby appropriated from the Common School
14Fund to the Public School Teachers' Pension and Retirement Fund
15of Chicago, on a continuing basis, the amount, if any, by which
16the total available amount of all other State appropriations to
17that Retirement Fund for the payment of State contributions
18under Section 17-127 of the Illinois Pension Code is less than
19the total amount of the vouchers for required State
20contributions lawfully submitted by the Retirement Fund or the
21State Board of Education, under that Section 17-127.
22(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11.)
 
24    Section 940. The Innovation Development and Economy Act is
25amended by changing Section 33 as follows:
 

 

 

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1    (50 ILCS 470/33)
2    Sec. 33. STAR Bonds School Improvement and Operations Trust
3Fund.
4    (a) The STAR Bonds School Improvement and Operations Trust
5Fund is created as a trust fund in the State treasury. Deposits
6into the Trust Fund shall be made as provided under this
7Section. Moneys in the Trust Fund shall be used by the
8Department of Revenue only for the purpose of making payments
9to school districts in educational service regions that include
10or are adjacent to the STAR bond district. Moneys in the Trust
11Fund are not subject to appropriation and shall be used solely
12as provided in this Section. All deposits into the Trust Fund
13shall be held in the Trust Fund by the State Treasurer as ex
14officio custodian separate and apart from all public moneys or
15funds of this State and shall be administered by the Department
16exclusively for the purposes set forth in this Section. All
17moneys in the Trust Fund shall be invested and reinvested by
18the State Treasurer. All interest accruing from these
19investments shall be deposited in the Trust Fund.
20    (b) Upon approval of a STAR bond district, the political
21subdivision shall immediately transmit to the county clerk of
22the county in which the district is located a certified copy of
23the ordinance creating the district, a legal description of the
24district, a map of the district, identification of the year
25that the county clerk shall use for determining the total

 

 

10000SB1947ham005- 89 -LRB100 09675 JWD 28950 a

1initial equalized assessed value of the district consistent
2with subsection (c), and a list of the parcel or tax
3identification number of each parcel of property included in
4the district.
5    (c) Upon approval of a STAR bond district, the county clerk
6immediately thereafter shall determine (i) the most recently
7ascertained equalized assessed value of each lot, block, tract,
8or parcel of real property within the STAR bond district, from
9which shall be deducted the homestead exemptions under Article
1015 of the Property Tax Code, which value shall be the initial
11equalized assessed value of each such piece of property, and
12(ii) the total equalized assessed value of all taxable real
13property within the district by adding together the most
14recently ascertained equalized assessed value of each taxable
15lot, block, tract, or parcel of real property within the
16district, from which shall be deducted the homestead exemptions
17under Article 15 of the Property Tax Code, and shall certify
18that amount as the total initial equalized assessed value of
19the taxable real property within the STAR bond district.
20    (d) In reference to any STAR bond district created within
21any political subdivision, and in respect to which the county
22clerk has certified the total initial equalized assessed value
23of the property in the area, the political subdivision may
24thereafter request the clerk in writing to adjust the initial
25equalized value of all taxable real property within the STAR
26bond district by deducting therefrom the exemptions under

 

 

10000SB1947ham005- 90 -LRB100 09675 JWD 28950 a

1Article 15 of the Property Tax Code applicable to each lot,
2block, tract, or parcel of real property within the STAR bond
3district. The county clerk shall immediately, after the written
4request to adjust the total initial equalized value is
5received, determine the total homestead exemptions in the STAR
6bond district as provided under Article 15 of the Property Tax
7Code by adding together the homestead exemptions provided by
8said Article on each lot, block, tract, or parcel of real
9property within the STAR bond district and then shall deduct
10the total of said exemptions from the total initial equalized
11assessed value. The county clerk shall then promptly certify
12that amount as the total initial equalized assessed value as
13adjusted of the taxable real property within the STAR bond
14district.
15    (e) The county clerk or other person authorized by law
16shall compute the tax rates for each taxing district with all
17or a portion of its equalized assessed value located in the
18STAR bond district. The rate per cent of tax determined shall
19be extended to the current equalized assessed value of all
20property in the district in the same manner as the rate per
21cent of tax is extended to all other taxable property in the
22taxing district.
23    (f) Beginning with the assessment year in which the first
24destination user in the first STAR bond project in a STAR bond
25district makes its first retail sales and for each assessment
26year thereafter until final maturity of the last STAR bonds

 

 

10000SB1947ham005- 91 -LRB100 09675 JWD 28950 a

1issued in the district, the county clerk or other person
2authorized by law shall determine the increase in equalized
3assessed value of all real property within the STAR bond
4district by subtracting the initial equalized assessed value of
5all property in the district certified under subsection (c)
6from the current equalized assessed value of all property in
7the district. Each year, the property taxes arising from the
8increase in equalized assessed value in the STAR bond district
9shall be determined for each taxing district and shall be
10certified to the county collector.
11    (g) Beginning with the year in which taxes are collected
12based on the assessment year in which the first destination
13user in the first STAR bond project in a STAR bond district
14makes its first retail sales and for each year thereafter until
15final maturity of the last STAR bonds issued in the district,
16the county collector shall, within 30 days after receipt of
17property taxes, transmit to the Department to be deposited into
18the STAR Bonds School Improvement and Operations Trust Fund 15%
19of property taxes attributable to the increase in equalized
20assessed value within the STAR bond district from each taxing
21district as certified in subsection (f).
22    (h) The Department shall pay to the regional superintendent
23of schools whose educational service region includes Franklin
24and Williamson Counties, for each year for which money is
25remitted to the Department and paid into the STAR Bonds School
26Improvement and Operations Trust Fund, the money in the Fund as

 

 

10000SB1947ham005- 92 -LRB100 09675 JWD 28950 a

1provided in this Section. The amount paid to each school
2district shall be allocated proportionately, based on each
3qualifying school district's fall enrollment for the
4then-current school year, such that the school district with
5the largest fall enrollment receives the largest proportionate
6share of money paid out of the Fund or by any other method or
7formula that the regional superintendent of schools deems fit,
8equitable, and in the public interest. The regional
9superintendent may allocate moneys to school districts that are
10outside of his or her educational service region or to other
11regional superintendents.
12    The Department shall determine the distributions under
13this Section using its best judgment and information. The
14Department shall be held harmless for the distributions made
15under this Section and all distributions shall be final.
16    (i) In any year that an assessment appeal is filed, the
17extension of taxes on any assessment so appealed shall not be
18delayed. In the case of an assessment that is altered, any
19taxes extended upon the unauthorized assessment or part thereof
20shall be abated, or, if already paid, shall be refunded with
21interest as provided in Section 23-20 of the Property Tax Code.
22In the case of an assessment appeal, the county collector shall
23notify the Department that an assessment appeal has been filed
24and the amount of the tax that would have been deposited in the
25STAR Bonds School Improvement and Operations Trust Fund. The
26county collector shall hold that amount in a separate fund

 

 

10000SB1947ham005- 93 -LRB100 09675 JWD 28950 a

1until the appeal process is final. After the appeal process is
2finalized, the county collector shall transmit to the
3Department the amount of tax that remains, if any, after all
4required refunds are made. The Department shall pay any amount
5deposited into the Trust Fund under this Section in the same
6proportion as determined for payments for that taxable year
7under subsection (h).
8    (j) In any year that ad valorem taxes are allocated to the
9STAR Bonds School Improvement and Operations Trust Fund, that
10allocation shall not reduce or otherwise impact the school aid
11provided to any school district under the general State school
12aid formula provided for in Section 18-8.05 of the School Code
13or the evidence-based funding formula provided for in Section
1418-8.15 of the School Code.
15(Source: P.A. 96-939, eff. 6-24-10.)
 
16    Section 945. The County Economic Development Project Area
17Property Tax Allocation Act is amended by changing Section 7 as
18follows:
 
19    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
20    Sec. 7. Creation of special tax allocation fund. If a
21county has adopted property tax allocation financing by
22ordinance for an economic development project area, the
23Department has approved and certified the economic development
24project area, and the county clerk has thereafter certified the

 

 

10000SB1947ham005- 94 -LRB100 09675 JWD 28950 a

1"total initial equalized value" of the taxable real property
2within such economic development project area in the manner
3provided in subsection (b) of Section 6 of this Act, each year
4after the date of the certification by the county clerk of the
5"initial equalized assessed value" until economic development
6project costs and all county obligations financing economic
7development project costs have been paid, the ad valorem taxes,
8if any, arising from the levies upon the taxable real property
9in the economic development project area by taxing districts
10and tax rates determined in the manner provided in subsection
11(b) of Section 6 of this Act shall be divided as follows:
12        (1) That portion of the taxes levied upon each taxable
13    lot, block, tract or parcel of real property which is
14    attributable to the lower of the current equalized assessed
15    value or the initial equalized assessed value of each such
16    taxable lot, block, tract, or parcel of real property
17    existing at the time property tax allocation financing was
18    adopted shall be allocated and when collected shall be paid
19    by the county collector to the respective affected taxing
20    districts in the manner required by the law in the absence
21    of the adoption of property tax allocation financing.
22        (2) That portion, if any, of those taxes which is
23    attributable to the increase in the current equalized
24    assessed valuation of each taxable lot, block, tract, or
25    parcel of real property in the economic development project
26    are, over and above the initial equalized assessed value of

 

 

10000SB1947ham005- 95 -LRB100 09675 JWD 28950 a

1    each property existing at the time property tax allocation
2    financing was adopted shall be allocated to and when
3    collected shall be paid to the county treasurer, who shall
4    deposit those taxes into a special fund called the special
5    tax allocation fund of the county for the purpose of paying
6    economic development project costs and obligations
7    incurred in the payment thereof.
8    The county, by an ordinance adopting property tax
9allocation financing, may pledge the funds in and to be
10deposited in the special tax allocation fund for the payment of
11obligations issued under this Act and for the payment of
12economic development project costs. No part of the current
13equalized assessed valuation of each property in the economic
14development project area attributable to any increase above the
15total initial equalized assessed value of such properties shall
16be used in calculating the general State school aid formula,
17provided for in Section 18-8 of the School Code, or the
18evidence-based funding formula, provided for in Section
1918-8.15 of the School Code, until such time as all economic
20development projects costs have been paid as provided for in
21this Section.
22    Whenever a county issues bonds for the purpose of financing
23economic development project costs, the county may provide by
24ordinance for the appointment of a trustee, which may be any
25trust company within the State, and for the establishment of
26the funds or accounts to be maintained by such trustee as the

 

 

10000SB1947ham005- 96 -LRB100 09675 JWD 28950 a

1county shall deem necessary to provide for the security and
2payment of the bonds. If the county provides for the
3appointment of a trustee, the trustee shall be considered the
4assignee of any payments assigned by the county pursuant to the
5ordinance and this Section. Any amounts paid to the trustee as
6assignee shall be deposited in the funds or accounts
7established pursuant to the trust agreement, and shall be held
8by the trustee in trust for the benefit of the holders of the
9bonds, and the holders shall have a lien on and a security
10interest in those bonds or accounts so long as the bonds remain
11outstanding and unpaid. Upon retirement of the bonds, the
12trustee shall pay over any excess amounts held to the county
13for deposit in the special tax allocation fund.
14    When the economic development project costs, including
15without limitation all county obligations financing economic
16development project costs incurred under this Act, have been
17paid, all surplus funds then remaining in the special tax
18allocation funds shall be distributed by being paid by the
19county treasurer to the county collector, who shall immediately
20thereafter pay those funds to the taxing districts having
21taxable property in the economic development project area in
22the same manner and proportion as the most recent distribution
23by the county collector to those taxing districts of real
24property taxes from real property in the economic development
25project area.
26    Upon the payment of all economic development project costs,

 

 

10000SB1947ham005- 97 -LRB100 09675 JWD 28950 a

1retirement of obligations and the distribution of any excess
2monies pursuant to this Section and not later than 23 years
3from the date of adoption of the ordinance adopting property
4tax allocation financing, the county shall adopt an ordinance
5dissolving the special tax allocation fund for the economic
6development project area and terminating the designation of the
7economic development project area as an economic development
8project area; however, in relation to one or more contiguous
9parcels not exceeding a total area of 120 acres within which an
10electric generating facility is intended to be constructed, and
11with respect to which the owner of that proposed electric
12generating facility has entered into a redevelopment agreement
13with Grundy County on or before July 25, 2017, the ordinance of
14the county required in this paragraph shall not dissolve the
15special tax allocation fund for the existing economic
16development project area and shall only terminate the
17designation of the economic development project area as to
18those portions of the economic development project area
19excluding the area covered by the redevelopment agreement
20between the owner of the proposed electric generating facility
21and Grundy County; the county shall adopt an ordinance
22dissolving the special tax allocation fund for the economic
23development project area and terminating the designation of the
24economic development project area as an economic development
25project area with regard to the electric generating facility
26property not later than 35 years from the date of adoption of

 

 

10000SB1947ham005- 98 -LRB100 09675 JWD 28950 a

1the ordinance adopting property tax allocation financing.
2Thereafter the rates of the taxing districts shall be extended
3and taxes levied, collected and distributed in the manner
4applicable in the absence of the adoption of property tax
5allocation financing.
6    Nothing in this Section shall be construed as relieving
7property in economic development project areas from being
8assessed as provided in the Property Tax Code or as relieving
9owners of that property from paying a uniform rate of taxes, as
10required by Section 4 of Article IX of the Illinois
11Constitution of 1970.
12(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
13    Section 950. The County Economic Development Project Area
14Tax Increment Allocation Act of 1991 is amended by changing
15Section 50 as follows:
 
16    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
17    Sec. 50. Special tax allocation fund.
18    (a) If a county clerk has certified the "total initial
19equalized assessed value" of the taxable real property within
20an economic development project area in the manner provided in
21Section 45, each year after the date of the certification by
22the county clerk of the "total initial equalized assessed
23value", until economic development project costs and all county
24obligations financing economic development project costs have

 

 

10000SB1947ham005- 99 -LRB100 09675 JWD 28950 a

1been paid, the ad valorem taxes, if any, arising from the
2levies upon the taxable real property in the economic
3development project area by taxing districts and tax rates
4determined in the manner provided in subsection (b) of Section
545 shall be divided as follows:
6        (1) That portion of the taxes levied upon each taxable
7    lot, block, tract, or parcel of real property that is
8    attributable to the lower of the current equalized assessed
9    value or the initial equalized assessed value of each
10    taxable lot, block, tract, or parcel of real property
11    existing at the time tax increment financing was adopted
12    shall be allocated to (and when collected shall be paid by
13    the county collector to) the respective affected taxing
14    districts in the manner required by law in the absence of
15    the adoption of tax increment allocation financing.
16        (2) That portion, if any, of the taxes that is
17    attributable to the increase in the current equalized
18    assessed valuation of each taxable lot, block, tract, or
19    parcel of real property in the economic development project
20    area, over and above the initial equalized assessed value
21    of each property existing at the time tax increment
22    financing was adopted, shall be allocated to (and when
23    collected shall be paid to) the county treasurer, who shall
24    deposit the taxes into a special fund (called the special
25    tax allocation fund of the county) for the purpose of
26    paying economic development project costs and obligations

 

 

10000SB1947ham005- 100 -LRB100 09675 JWD 28950 a

1    incurred in the payment of those costs.
2    (b) The county, by an ordinance adopting tax increment
3allocation financing, may pledge the monies in and to be
4deposited into the special tax allocation fund for the payment
5of obligations issued under this Act and for the payment of
6economic development project costs. No part of the current
7equalized assessed valuation of each property in the economic
8development project area attributable to any increase above the
9total initial equalized assessed value of those properties
10shall be used in calculating the general State school aid
11formula under Section 18-8 of the School Code or the
12evidence-based funding formula under Section 18-8.15 of the
13School Code until all economic development projects costs have
14been paid as provided for in this Section.
15    (c) When the economic development projects costs,
16including without limitation all county obligations financing
17economic development project costs incurred under this Act,
18have been paid, all surplus monies then remaining in the
19special tax allocation fund shall be distributed by being paid
20by the county treasurer to the county collector, who shall
21immediately pay the monies to the taxing districts having
22taxable property in the economic development project area in
23the same manner and proportion as the most recent distribution
24by the county collector to those taxing districts of real
25property taxes from real property in the economic development
26project area.

 

 

10000SB1947ham005- 101 -LRB100 09675 JWD 28950 a

1    (d) Upon the payment of all economic development project
2costs, retirement of obligations, and distribution of any
3excess monies under this Section, the county shall adopt an
4ordinance dissolving the special tax allocation fund for the
5economic development project area and terminating the
6designation of the economic development project area as an
7economic development project area. Thereafter, the rates of the
8taxing districts shall be extended and taxes shall be levied,
9collected, and distributed in the manner applicable in the
10absence of the adoption of tax increment allocation financing.
11    (e) Nothing in this Section shall be construed as relieving
12property in the economic development project areas from being
13assessed as provided in the Property Tax Code or as relieving
14owners of that property from paying a uniform rate of taxes as
15required by Section 4 of Article IX of the Illinois
16Constitution.
17(Source: P.A. 98-463, eff. 8-16-13.)
 
18    Section 955. The Illinois Municipal Code is amended by
19changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
20follows:
 
21    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
22    Sec. 11-74.4-3. Definitions. The following terms, wherever
23used or referred to in this Division 74.4 shall have the
24following respective meanings, unless in any case a different

 

 

10000SB1947ham005- 102 -LRB100 09675 JWD 28950 a

1meaning clearly appears from the context.
2    (a) For any redevelopment project area that has been
3designated pursuant to this Section by an ordinance adopted
4prior to November 1, 1999 (the effective date of Public Act
591-478), "blighted area" shall have the meaning set forth in
6this Section prior to that date.
7    On and after November 1, 1999, "blighted area" means any
8improved or vacant area within the boundaries of a
9redevelopment project area located within the territorial
10limits of the municipality where:
11        (1) If improved, industrial, commercial, and
12    residential buildings or improvements are detrimental to
13    the public safety, health, or welfare because of a
14    combination of 5 or more of the following factors, each of
15    which is (i) present, with that presence documented, to a
16    meaningful extent so that a municipality may reasonably
17    find that the factor is clearly present within the intent
18    of the Act and (ii) reasonably distributed throughout the
19    improved part of the redevelopment project area:
20            (A) Dilapidation. An advanced state of disrepair
21        or neglect of necessary repairs to the primary
22        structural components of buildings or improvements in
23        such a combination that a documented building
24        condition analysis determines that major repair is
25        required or the defects are so serious and so extensive
26        that the buildings must be removed.

 

 

10000SB1947ham005- 103 -LRB100 09675 JWD 28950 a

1            (B) Obsolescence. The condition or process of
2        falling into disuse. Structures have become ill-suited
3        for the original use.
4            (C) Deterioration. With respect to buildings,
5        defects including, but not limited to, major defects in
6        the secondary building components such as doors,
7        windows, porches, gutters and downspouts, and fascia.
8        With respect to surface improvements, that the
9        condition of roadways, alleys, curbs, gutters,
10        sidewalks, off-street parking, and surface storage
11        areas evidence deterioration, including, but not
12        limited to, surface cracking, crumbling, potholes,
13        depressions, loose paving material, and weeds
14        protruding through paved surfaces.
15            (D) Presence of structures below minimum code
16        standards. All structures that do not meet the
17        standards of zoning, subdivision, building, fire, and
18        other governmental codes applicable to property, but
19        not including housing and property maintenance codes.
20            (E) Illegal use of individual structures. The use
21        of structures in violation of applicable federal,
22        State, or local laws, exclusive of those applicable to
23        the presence of structures below minimum code
24        standards.
25            (F) Excessive vacancies. The presence of buildings
26        that are unoccupied or under-utilized and that

 

 

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1        represent an adverse influence on the area because of
2        the frequency, extent, or duration of the vacancies.
3            (G) Lack of ventilation, light, or sanitary
4        facilities. The absence of adequate ventilation for
5        light or air circulation in spaces or rooms without
6        windows, or that require the removal of dust, odor,
7        gas, smoke, or other noxious airborne materials.
8        Inadequate natural light and ventilation means the
9        absence of skylights or windows for interior spaces or
10        rooms and improper window sizes and amounts by room
11        area to window area ratios. Inadequate sanitary
12        facilities refers to the absence or inadequacy of
13        garbage storage and enclosure, bathroom facilities,
14        hot water and kitchens, and structural inadequacies
15        preventing ingress and egress to and from all rooms and
16        units within a building.
17            (H) Inadequate utilities. Underground and overhead
18        utilities such as storm sewers and storm drainage,
19        sanitary sewers, water lines, and gas, telephone, and
20        electrical services that are shown to be inadequate.
21        Inadequate utilities are those that are: (i) of
22        insufficient capacity to serve the uses in the
23        redevelopment project area, (ii) deteriorated,
24        antiquated, obsolete, or in disrepair, or (iii)
25        lacking within the redevelopment project area.
26            (I) Excessive land coverage and overcrowding of

 

 

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1        structures and community facilities. The
2        over-intensive use of property and the crowding of
3        buildings and accessory facilities onto a site.
4        Examples of problem conditions warranting the
5        designation of an area as one exhibiting excessive land
6        coverage are: (i) the presence of buildings either
7        improperly situated on parcels or located on parcels of
8        inadequate size and shape in relation to present-day
9        standards of development for health and safety and (ii)
10        the presence of multiple buildings on a single parcel.
11        For there to be a finding of excessive land coverage,
12        these parcels must exhibit one or more of the following
13        conditions: insufficient provision for light and air
14        within or around buildings, increased threat of spread
15        of fire due to the close proximity of buildings, lack
16        of adequate or proper access to a public right-of-way,
17        lack of reasonably required off-street parking, or
18        inadequate provision for loading and service.
19            (J) Deleterious land use or layout. The existence
20        of incompatible land-use relationships, buildings
21        occupied by inappropriate mixed-uses, or uses
22        considered to be noxious, offensive, or unsuitable for
23        the surrounding area.
24            (K) Environmental clean-up. The proposed
25        redevelopment project area has incurred Illinois
26        Environmental Protection Agency or United States

 

 

10000SB1947ham005- 106 -LRB100 09675 JWD 28950 a

1        Environmental Protection Agency remediation costs for,
2        or a study conducted by an independent consultant
3        recognized as having expertise in environmental
4        remediation has determined a need for, the clean-up of
5        hazardous waste, hazardous substances, or underground
6        storage tanks required by State or federal law,
7        provided that the remediation costs constitute a
8        material impediment to the development or
9        redevelopment of the redevelopment project area.
10            (L) Lack of community planning. The proposed
11        redevelopment project area was developed prior to or
12        without the benefit or guidance of a community plan.
13        This means that the development occurred prior to the
14        adoption by the municipality of a comprehensive or
15        other community plan or that the plan was not followed
16        at the time of the area's development. This factor must
17        be documented by evidence of adverse or incompatible
18        land-use relationships, inadequate street layout,
19        improper subdivision, parcels of inadequate shape and
20        size to meet contemporary development standards, or
21        other evidence demonstrating an absence of effective
22        community planning.
23            (M) The total equalized assessed value of the
24        proposed redevelopment project area has declined for 3
25        of the last 5 calendar years prior to the year in which
26        the redevelopment project area is designated or is

 

 

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1        increasing at an annual rate that is less than the
2        balance of the municipality for 3 of the last 5
3        calendar years for which information is available or is
4        increasing at an annual rate that is less than the
5        Consumer Price Index for All Urban Consumers published
6        by the United States Department of Labor or successor
7        agency for 3 of the last 5 calendar years prior to the
8        year in which the redevelopment project area is
9        designated.
10        (2) If vacant, the sound growth of the redevelopment
11    project area is impaired by a combination of 2 or more of
12    the following factors, each of which is (i) present, with
13    that presence documented, to a meaningful extent so that a
14    municipality may reasonably find that the factor is clearly
15    present within the intent of the Act and (ii) reasonably
16    distributed throughout the vacant part of the
17    redevelopment project area to which it pertains:
18            (A) Obsolete platting of vacant land that results
19        in parcels of limited or narrow size or configurations
20        of parcels of irregular size or shape that would be
21        difficult to develop on a planned basis and in a manner
22        compatible with contemporary standards and
23        requirements, or platting that failed to create
24        rights-of-ways for streets or alleys or that created
25        inadequate right-of-way widths for streets, alleys, or
26        other public rights-of-way or that omitted easements

 

 

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1        for public utilities.
2            (B) Diversity of ownership of parcels of vacant
3        land sufficient in number to retard or impede the
4        ability to assemble the land for development.
5            (C) Tax and special assessment delinquencies exist
6        or the property has been the subject of tax sales under
7        the Property Tax Code within the last 5 years.
8            (D) Deterioration of structures or site
9        improvements in neighboring areas adjacent to the
10        vacant land.
11            (E) The area has incurred Illinois Environmental
12        Protection Agency or United States Environmental
13        Protection Agency remediation costs for, or a study
14        conducted by an independent consultant recognized as
15        having expertise in environmental remediation has
16        determined a need for, the clean-up of hazardous waste,
17        hazardous substances, or underground storage tanks
18        required by State or federal law, provided that the
19        remediation costs constitute a material impediment to
20        the development or redevelopment of the redevelopment
21        project area.
22            (F) The total equalized assessed value of the
23        proposed redevelopment project area has declined for 3
24        of the last 5 calendar years prior to the year in which
25        the redevelopment project area is designated or is
26        increasing at an annual rate that is less than the

 

 

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1        balance of the municipality for 3 of the last 5
2        calendar years for which information is available or is
3        increasing at an annual rate that is less than the
4        Consumer Price Index for All Urban Consumers published
5        by the United States Department of Labor or successor
6        agency for 3 of the last 5 calendar years prior to the
7        year in which the redevelopment project area is
8        designated.
9        (3) If vacant, the sound growth of the redevelopment
10    project area is impaired by one of the following factors
11    that (i) is present, with that presence documented, to a
12    meaningful extent so that a municipality may reasonably
13    find that the factor is clearly present within the intent
14    of the Act and (ii) is reasonably distributed throughout
15    the vacant part of the redevelopment project area to which
16    it pertains:
17            (A) The area consists of one or more unused
18        quarries, mines, or strip mine ponds.
19            (B) The area consists of unused rail yards, rail
20        tracks, or railroad rights-of-way.
21            (C) The area, prior to its designation, is subject
22        to (i) chronic flooding that adversely impacts on real
23        property in the area as certified by a registered
24        professional engineer or appropriate regulatory agency
25        or (ii) surface water that discharges from all or a
26        part of the area and contributes to flooding within the

 

 

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1        same watershed, but only if the redevelopment project
2        provides for facilities or improvements to contribute
3        to the alleviation of all or part of the flooding.
4            (D) The area consists of an unused or illegal
5        disposal site containing earth, stone, building
6        debris, or similar materials that were removed from
7        construction, demolition, excavation, or dredge sites.
8            (E) Prior to November 1, 1999, the area is not less
9        than 50 nor more than 100 acres and 75% of which is
10        vacant (notwithstanding that the area has been used for
11        commercial agricultural purposes within 5 years prior
12        to the designation of the redevelopment project area),
13        and the area meets at least one of the factors itemized
14        in paragraph (1) of this subsection, the area has been
15        designated as a town or village center by ordinance or
16        comprehensive plan adopted prior to January 1, 1982,
17        and the area has not been developed for that designated
18        purpose.
19            (F) The area qualified as a blighted improved area
20        immediately prior to becoming vacant, unless there has
21        been substantial private investment in the immediately
22        surrounding area.
23    (b) For any redevelopment project area that has been
24designated pursuant to this Section by an ordinance adopted
25prior to November 1, 1999 (the effective date of Public Act
2691-478), "conservation area" shall have the meaning set forth

 

 

10000SB1947ham005- 111 -LRB100 09675 JWD 28950 a

1in this Section prior to that date.
2    On and after November 1, 1999, "conservation area" means
3any improved area within the boundaries of a redevelopment
4project area located within the territorial limits of the
5municipality in which 50% or more of the structures in the area
6have an age of 35 years or more. Such an area is not yet a
7blighted area but because of a combination of 3 or more of the
8following factors is detrimental to the public safety, health,
9morals or welfare and such an area may become a blighted area:
10        (1) Dilapidation. An advanced state of disrepair or
11    neglect of necessary repairs to the primary structural
12    components of buildings or improvements in such a
13    combination that a documented building condition analysis
14    determines that major repair is required or the defects are
15    so serious and so extensive that the buildings must be
16    removed.
17        (2) Obsolescence. The condition or process of falling
18    into disuse. Structures have become ill-suited for the
19    original use.
20        (3) Deterioration. With respect to buildings, defects
21    including, but not limited to, major defects in the
22    secondary building components such as doors, windows,
23    porches, gutters and downspouts, and fascia. With respect
24    to surface improvements, that the condition of roadways,
25    alleys, curbs, gutters, sidewalks, off-street parking, and
26    surface storage areas evidence deterioration, including,

 

 

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1    but not limited to, surface cracking, crumbling, potholes,
2    depressions, loose paving material, and weeds protruding
3    through paved surfaces.
4        (4) Presence of structures below minimum code
5    standards. All structures that do not meet the standards of
6    zoning, subdivision, building, fire, and other
7    governmental codes applicable to property, but not
8    including housing and property maintenance codes.
9        (5) Illegal use of individual structures. The use of
10    structures in violation of applicable federal, State, or
11    local laws, exclusive of those applicable to the presence
12    of structures below minimum code standards.
13        (6) Excessive vacancies. The presence of buildings
14    that are unoccupied or under-utilized and that represent an
15    adverse influence on the area because of the frequency,
16    extent, or duration of the vacancies.
17        (7) Lack of ventilation, light, or sanitary
18    facilities. The absence of adequate ventilation for light
19    or air circulation in spaces or rooms without windows, or
20    that require the removal of dust, odor, gas, smoke, or
21    other noxious airborne materials. Inadequate natural light
22    and ventilation means the absence or inadequacy of
23    skylights or windows for interior spaces or rooms and
24    improper window sizes and amounts by room area to window
25    area ratios. Inadequate sanitary facilities refers to the
26    absence or inadequacy of garbage storage and enclosure,

 

 

10000SB1947ham005- 113 -LRB100 09675 JWD 28950 a

1    bathroom facilities, hot water and kitchens, and
2    structural inadequacies preventing ingress and egress to
3    and from all rooms and units within a building.
4        (8) Inadequate utilities. Underground and overhead
5    utilities such as storm sewers and storm drainage, sanitary
6    sewers, water lines, and gas, telephone, and electrical
7    services that are shown to be inadequate. Inadequate
8    utilities are those that are: (i) of insufficient capacity
9    to serve the uses in the redevelopment project area, (ii)
10    deteriorated, antiquated, obsolete, or in disrepair, or
11    (iii) lacking within the redevelopment project area.
12        (9) Excessive land coverage and overcrowding of
13    structures and community facilities. The over-intensive
14    use of property and the crowding of buildings and accessory
15    facilities onto a site. Examples of problem conditions
16    warranting the designation of an area as one exhibiting
17    excessive land coverage are: the presence of buildings
18    either improperly situated on parcels or located on parcels
19    of inadequate size and shape in relation to present-day
20    standards of development for health and safety and the
21    presence of multiple buildings on a single parcel. For
22    there to be a finding of excessive land coverage, these
23    parcels must exhibit one or more of the following
24    conditions: insufficient provision for light and air
25    within or around buildings, increased threat of spread of
26    fire due to the close proximity of buildings, lack of

 

 

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1    adequate or proper access to a public right-of-way, lack of
2    reasonably required off-street parking, or inadequate
3    provision for loading and service.
4        (10) Deleterious land use or layout. The existence of
5    incompatible land-use relationships, buildings occupied by
6    inappropriate mixed-uses, or uses considered to be
7    noxious, offensive, or unsuitable for the surrounding
8    area.
9        (11) Lack of community planning. The proposed
10    redevelopment project area was developed prior to or
11    without the benefit or guidance of a community plan. This
12    means that the development occurred prior to the adoption
13    by the municipality of a comprehensive or other community
14    plan or that the plan was not followed at the time of the
15    area's development. This factor must be documented by
16    evidence of adverse or incompatible land-use
17    relationships, inadequate street layout, improper
18    subdivision, parcels of inadequate shape and size to meet
19    contemporary development standards, or other evidence
20    demonstrating an absence of effective community planning.
21        (12) The area has incurred Illinois Environmental
22    Protection Agency or United States Environmental
23    Protection Agency remediation costs for, or a study
24    conducted by an independent consultant recognized as
25    having expertise in environmental remediation has
26    determined a need for, the clean-up of hazardous waste,

 

 

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1    hazardous substances, or underground storage tanks
2    required by State or federal law, provided that the
3    remediation costs constitute a material impediment to the
4    development or redevelopment of the redevelopment project
5    area.
6        (13) The total equalized assessed value of the proposed
7    redevelopment project area has declined for 3 of the last 5
8    calendar years for which information is available or is
9    increasing at an annual rate that is less than the balance
10    of the municipality for 3 of the last 5 calendar years for
11    which information is available or is increasing at an
12    annual rate that is less than the Consumer Price Index for
13    All Urban Consumers published by the United States
14    Department of Labor or successor agency for 3 of the last 5
15    calendar years for which information is available.
16    (c) "Industrial park" means an area in a blighted or
17conservation area suitable for use by any manufacturing,
18industrial, research or transportation enterprise, of
19facilities to include but not be limited to factories, mills,
20processing plants, assembly plants, packing plants,
21fabricating plants, industrial distribution centers,
22warehouses, repair overhaul or service facilities, freight
23terminals, research facilities, test facilities or railroad
24facilities.
25    (d) "Industrial park conservation area" means an area
26within the boundaries of a redevelopment project area located

 

 

10000SB1947ham005- 116 -LRB100 09675 JWD 28950 a

1within the territorial limits of a municipality that is a labor
2surplus municipality or within 1 1/2 miles of the territorial
3limits of a municipality that is a labor surplus municipality
4if the area is annexed to the municipality; which area is zoned
5as industrial no later than at the time the municipality by
6ordinance designates the redevelopment project area, and which
7area includes both vacant land suitable for use as an
8industrial park and a blighted area or conservation area
9contiguous to such vacant land.
10    (e) "Labor surplus municipality" means a municipality in
11which, at any time during the 6 months before the municipality
12by ordinance designates an industrial park conservation area,
13the unemployment rate was over 6% and was also 100% or more of
14the national average unemployment rate for that same time as
15published in the United States Department of Labor Bureau of
16Labor Statistics publication entitled "The Employment
17Situation" or its successor publication. For the purpose of
18this subsection, if unemployment rate statistics for the
19municipality are not available, the unemployment rate in the
20municipality shall be deemed to be the same as the unemployment
21rate in the principal county in which the municipality is
22located.
23    (f) "Municipality" shall mean a city, village,
24incorporated town, or a township that is located in the
25unincorporated portion of a county with 3 million or more
26inhabitants, if the county adopted an ordinance that approved

 

 

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1the township's redevelopment plan.
2    (g) "Initial Sales Tax Amounts" means the amount of taxes
3paid under the Retailers' Occupation Tax Act, Use Tax Act,
4Service Use Tax Act, the Service Occupation Tax Act, the
5Municipal Retailers' Occupation Tax Act, and the Municipal
6Service Occupation Tax Act by retailers and servicemen on
7transactions at places located in a State Sales Tax Boundary
8during the calendar year 1985.
9    (g-1) "Revised Initial Sales Tax Amounts" means the amount
10of taxes paid under the Retailers' Occupation Tax Act, Use Tax
11Act, Service Use Tax Act, the Service Occupation Tax Act, the
12Municipal Retailers' Occupation Tax Act, and the Municipal
13Service Occupation Tax Act by retailers and servicemen on
14transactions at places located within the State Sales Tax
15Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
16    (h) "Municipal Sales Tax Increment" means an amount equal
17to the increase in the aggregate amount of taxes paid to a
18municipality from the Local Government Tax Fund arising from
19sales by retailers and servicemen within the redevelopment
20project area or State Sales Tax Boundary, as the case may be,
21for as long as the redevelopment project area or State Sales
22Tax Boundary, as the case may be, exist over and above the
23aggregate amount of taxes as certified by the Illinois
24Department of Revenue and paid under the Municipal Retailers'
25Occupation Tax Act and the Municipal Service Occupation Tax Act
26by retailers and servicemen, on transactions at places of

 

 

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1business located in the redevelopment project area or State
2Sales Tax Boundary, as the case may be, during the base year
3which shall be the calendar year immediately prior to the year
4in which the municipality adopted tax increment allocation
5financing. For purposes of computing the aggregate amount of
6such taxes for base years occurring prior to 1985, the
7Department of Revenue shall determine the Initial Sales Tax
8Amounts for such taxes and deduct therefrom an amount equal to
94% of the aggregate amount of taxes per year for each year the
10base year is prior to 1985, but not to exceed a total deduction
11of 12%. The amount so determined shall be known as the
12"Adjusted Initial Sales Tax Amounts". For purposes of
13determining the Municipal Sales Tax Increment, the Department
14of Revenue shall for each period subtract from the amount paid
15to the municipality from the Local Government Tax Fund arising
16from sales by retailers and servicemen on transactions located
17in the redevelopment project area or the State Sales Tax
18Boundary, as the case may be, the certified Initial Sales Tax
19Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
20Initial Sales Tax Amounts for the Municipal Retailers'
21Occupation Tax Act and the Municipal Service Occupation Tax
22Act. For the State Fiscal Year 1989, this calculation shall be
23made by utilizing the calendar year 1987 to determine the tax
24amounts received. For the State Fiscal Year 1990, this
25calculation shall be made by utilizing the period from January
261, 1988, until September 30, 1988, to determine the tax amounts

 

 

10000SB1947ham005- 119 -LRB100 09675 JWD 28950 a

1received from retailers and servicemen pursuant to the
2Municipal Retailers' Occupation Tax and the Municipal Service
3Occupation Tax Act, which shall have deducted therefrom
4nine-twelfths of the certified Initial Sales Tax Amounts, the
5Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
6Tax Amounts as appropriate. For the State Fiscal Year 1991,
7this calculation shall be made by utilizing the period from
8October 1, 1988, to June 30, 1989, to determine the tax amounts
9received from retailers and servicemen pursuant to the
10Municipal Retailers' Occupation Tax and the Municipal Service
11Occupation Tax Act which shall have deducted therefrom
12nine-twelfths of the certified Initial Sales Tax Amounts,
13Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
14Tax Amounts as appropriate. For every State Fiscal Year
15thereafter, the applicable period shall be the 12 months
16beginning July 1 and ending June 30 to determine the tax
17amounts received which shall have deducted therefrom the
18certified Initial Sales Tax Amounts, the Adjusted Initial Sales
19Tax Amounts or the Revised Initial Sales Tax Amounts, as the
20case may be.
21    (i) "Net State Sales Tax Increment" means the sum of the
22following: (a) 80% of the first $100,000 of State Sales Tax
23Increment annually generated within a State Sales Tax Boundary;
24(b) 60% of the amount in excess of $100,000 but not exceeding
25$500,000 of State Sales Tax Increment annually generated within
26a State Sales Tax Boundary; and (c) 40% of all amounts in

 

 

10000SB1947ham005- 120 -LRB100 09675 JWD 28950 a

1excess of $500,000 of State Sales Tax Increment annually
2generated within a State Sales Tax Boundary. If, however, a
3municipality established a tax increment financing district in
4a county with a population in excess of 3,000,000 before
5January 1, 1986, and the municipality entered into a contract
6or issued bonds after January 1, 1986, but before December 31,
71986, to finance redevelopment project costs within a State
8Sales Tax Boundary, then the Net State Sales Tax Increment
9means, for the fiscal years beginning July 1, 1990, and July 1,
101991, 100% of the State Sales Tax Increment annually generated
11within a State Sales Tax Boundary; and notwithstanding any
12other provision of this Act, for those fiscal years the
13Department of Revenue shall distribute to those municipalities
14100% of their Net State Sales Tax Increment before any
15distribution to any other municipality and regardless of
16whether or not those other municipalities will receive 100% of
17their Net State Sales Tax Increment. For Fiscal Year 1999, and
18every year thereafter until the year 2007, for any municipality
19that has not entered into a contract or has not issued bonds
20prior to June 1, 1988 to finance redevelopment project costs
21within a State Sales Tax Boundary, the Net State Sales Tax
22Increment shall be calculated as follows: By multiplying the
23Net State Sales Tax Increment by 90% in the State Fiscal Year
241999; 80% in the State Fiscal Year 2000; 70% in the State
25Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
26State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%

 

 

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1in the State Fiscal Year 2005; 20% in the State Fiscal Year
22006; and 10% in the State Fiscal Year 2007. No payment shall
3be made for State Fiscal Year 2008 and thereafter.
4    Municipalities that issued bonds in connection with a
5redevelopment project in a redevelopment project area within
6the State Sales Tax Boundary prior to July 29, 1991, or that
7entered into contracts in connection with a redevelopment
8project in a redevelopment project area before June 1, 1988,
9shall continue to receive their proportional share of the
10Illinois Tax Increment Fund distribution until the date on
11which the redevelopment project is completed or terminated. If,
12however, a municipality that issued bonds in connection with a
13redevelopment project in a redevelopment project area within
14the State Sales Tax Boundary prior to July 29, 1991 retires the
15bonds prior to June 30, 2007 or a municipality that entered
16into contracts in connection with a redevelopment project in a
17redevelopment project area before June 1, 1988 completes the
18contracts prior to June 30, 2007, then so long as the
19redevelopment project is not completed or is not terminated,
20the Net State Sales Tax Increment shall be calculated,
21beginning on the date on which the bonds are retired or the
22contracts are completed, as follows: By multiplying the Net
23State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2450% in the State Fiscal Year 2003; 40% in the State Fiscal Year
252004; 30% in the State Fiscal Year 2005; 20% in the State
26Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No

 

 

10000SB1947ham005- 122 -LRB100 09675 JWD 28950 a

1payment shall be made for State Fiscal Year 2008 and
2thereafter. Refunding of any bonds issued prior to July 29,
31991, shall not alter the Net State Sales Tax Increment.
4    (j) "State Utility Tax Increment Amount" means an amount
5equal to the aggregate increase in State electric and gas tax
6charges imposed on owners and tenants, other than residential
7customers, of properties located within the redevelopment
8project area under Section 9-222 of the Public Utilities Act,
9over and above the aggregate of such charges as certified by
10the Department of Revenue and paid by owners and tenants, other
11than residential customers, of properties within the
12redevelopment project area during the base year, which shall be
13the calendar year immediately prior to the year of the adoption
14of the ordinance authorizing tax increment allocation
15financing.
16    (k) "Net State Utility Tax Increment" means the sum of the
17following: (a) 80% of the first $100,000 of State Utility Tax
18Increment annually generated by a redevelopment project area;
19(b) 60% of the amount in excess of $100,000 but not exceeding
20$500,000 of the State Utility Tax Increment annually generated
21by a redevelopment project area; and (c) 40% of all amounts in
22excess of $500,000 of State Utility Tax Increment annually
23generated by a redevelopment project area. For the State Fiscal
24Year 1999, and every year thereafter until the year 2007, for
25any municipality that has not entered into a contract or has
26not issued bonds prior to June 1, 1988 to finance redevelopment

 

 

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1project costs within a redevelopment project area, the Net
2State Utility Tax Increment shall be calculated as follows: By
3multiplying the Net State Utility Tax Increment by 90% in the
4State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
5in the State Fiscal Year 2001; 60% in the State Fiscal Year
62002; 50% in the State Fiscal Year 2003; 40% in the State
7Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
8State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
9No payment shall be made for the State Fiscal Year 2008 and
10thereafter.
11    Municipalities that issue bonds in connection with the
12redevelopment project during the period from June 1, 1988 until
133 years after the effective date of this Amendatory Act of 1988
14shall receive the Net State Utility Tax Increment, subject to
15appropriation, for 15 State Fiscal Years after the issuance of
16such bonds. For the 16th through the 20th State Fiscal Years
17after issuance of the bonds, the Net State Utility Tax
18Increment shall be calculated as follows: By multiplying the
19Net State Utility Tax Increment by 90% in year 16; 80% in year
2017; 70% in year 18; 60% in year 19; and 50% in year 20.
21Refunding of any bonds issued prior to June 1, 1988, shall not
22alter the revised Net State Utility Tax Increment payments set
23forth above.
24    (l) "Obligations" mean bonds, loans, debentures, notes,
25special certificates or other evidence of indebtedness issued
26by the municipality to carry out a redevelopment project or to

 

 

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1refund outstanding obligations.
2    (m) "Payment in lieu of taxes" means those estimated tax
3revenues from real property in a redevelopment project area
4derived from real property that has been acquired by a
5municipality which according to the redevelopment project or
6plan is to be used for a private use which taxing districts
7would have received had a municipality not acquired the real
8property and adopted tax increment allocation financing and
9which would result from levies made after the time of the
10adoption of tax increment allocation financing to the time the
11current equalized value of real property in the redevelopment
12project area exceeds the total initial equalized value of real
13property in said area.
14    (n) "Redevelopment plan" means the comprehensive program
15of the municipality for development or redevelopment intended
16by the payment of redevelopment project costs to reduce or
17eliminate those conditions the existence of which qualified the
18redevelopment project area as a "blighted area" or
19"conservation area" or combination thereof or "industrial park
20conservation area," and thereby to enhance the tax bases of the
21taxing districts which extend into the redevelopment project
22area, provided that, with respect to redevelopment project
23areas described in subsections (p-1) and (p-2), "redevelopment
24plan" means the comprehensive program of the affected
25municipality for the development of qualifying transit
26facilities. On and after November 1, 1999 (the effective date

 

 

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1of Public Act 91-478), no redevelopment plan may be approved or
2amended that includes the development of vacant land (i) with a
3golf course and related clubhouse and other facilities or (ii)
4designated by federal, State, county, or municipal government
5as public land for outdoor recreational activities or for
6nature preserves and used for that purpose within 5 years prior
7to the adoption of the redevelopment plan. For the purpose of
8this subsection, "recreational activities" is limited to mean
9camping and hunting. Each redevelopment plan shall set forth in
10writing the program to be undertaken to accomplish the
11objectives and shall include but not be limited to:
12        (A) an itemized list of estimated redevelopment
13    project costs;
14        (B) evidence indicating that the redevelopment project
15    area on the whole has not been subject to growth and
16    development through investment by private enterprise,
17    provided that such evidence shall not be required for any
18    redevelopment project area located within a transit
19    facility improvement area established pursuant to Section
20    11-74.4-3.3;
21        (C) an assessment of any financial impact of the
22    redevelopment project area on or any increased demand for
23    services from any taxing district affected by the plan and
24    any program to address such financial impact or increased
25    demand;
26        (D) the sources of funds to pay costs;

 

 

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1        (E) the nature and term of the obligations to be
2    issued;
3        (F) the most recent equalized assessed valuation of the
4    redevelopment project area;
5        (G) an estimate as to the equalized assessed valuation
6    after redevelopment and the general land uses to apply in
7    the redevelopment project area;
8        (H) a commitment to fair employment practices and an
9    affirmative action plan;
10        (I) if it concerns an industrial park conservation
11    area, the plan shall also include a general description of
12    any proposed developer, user and tenant of any property, a
13    description of the type, structure and general character of
14    the facilities to be developed, a description of the type,
15    class and number of new employees to be employed in the
16    operation of the facilities to be developed; and
17        (J) if property is to be annexed to the municipality,
18    the plan shall include the terms of the annexation
19    agreement.
20    The provisions of items (B) and (C) of this subsection (n)
21shall not apply to a municipality that before March 14, 1994
22(the effective date of Public Act 88-537) had fixed, either by
23its corporate authorities or by a commission designated under
24subsection (k) of Section 11-74.4-4, a time and place for a
25public hearing as required by subsection (a) of Section
2611-74.4-5. No redevelopment plan shall be adopted unless a

 

 

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1municipality complies with all of the following requirements:
2        (1) The municipality finds that the redevelopment
3    project area on the whole has not been subject to growth
4    and development through investment by private enterprise
5    and would not reasonably be anticipated to be developed
6    without the adoption of the redevelopment plan, provided,
7    however, that such a finding shall not be required with
8    respect to any redevelopment project area located within a
9    transit facility improvement area established pursuant to
10    Section 11-74.4-3.3.
11        (2) The municipality finds that the redevelopment plan
12    and project conform to the comprehensive plan for the
13    development of the municipality as a whole, or, for
14    municipalities with a population of 100,000 or more,
15    regardless of when the redevelopment plan and project was
16    adopted, the redevelopment plan and project either: (i)
17    conforms to the strategic economic development or
18    redevelopment plan issued by the designated planning
19    authority of the municipality, or (ii) includes land uses
20    that have been approved by the planning commission of the
21    municipality.
22        (3) The redevelopment plan establishes the estimated
23    dates of completion of the redevelopment project and
24    retirement of obligations issued to finance redevelopment
25    project costs. Those dates may not be later than the dates
26    set forth under Section 11-74.4-3.5.

 

 

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1        A municipality may by municipal ordinance amend an
2    existing redevelopment plan to conform to this paragraph
3    (3) as amended by Public Act 91-478, which municipal
4    ordinance may be adopted without further hearing or notice
5    and without complying with the procedures provided in this
6    Act pertaining to an amendment to or the initial approval
7    of a redevelopment plan and project and designation of a
8    redevelopment project area.
9        (3.5) The municipality finds, in the case of an
10    industrial park conservation area, also that the
11    municipality is a labor surplus municipality and that the
12    implementation of the redevelopment plan will reduce
13    unemployment, create new jobs and by the provision of new
14    facilities enhance the tax base of the taxing districts
15    that extend into the redevelopment project area.
16        (4) If any incremental revenues are being utilized
17    under Section 8(a)(1) or 8(a)(2) of this Act in
18    redevelopment project areas approved by ordinance after
19    January 1, 1986, the municipality finds: (a) that the
20    redevelopment project area would not reasonably be
21    developed without the use of such incremental revenues, and
22    (b) that such incremental revenues will be exclusively
23    utilized for the development of the redevelopment project
24    area.
25        (5) If: (a) the redevelopment plan will not result in
26    displacement of residents from 10 or more inhabited

 

 

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1    residential units, and the municipality certifies in the
2    plan that such displacement will not result from the plan;
3    or (b) the redevelopment plan is for a redevelopment
4    project area located within a transit facility improvement
5    area established pursuant to Section 11-74.4-3.3, and the
6    applicable project is subject to the process for evaluation
7    of environmental effects under the National Environmental
8    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
9    housing impact study need not be performed. If, however,
10    the redevelopment plan would result in the displacement of
11    residents from 10 or more inhabited residential units, or
12    if the redevelopment project area contains 75 or more
13    inhabited residential units and no certification is made,
14    then the municipality shall prepare, as part of the
15    separate feasibility report required by subsection (a) of
16    Section 11-74.4-5, a housing impact study.
17        Part I of the housing impact study shall include (i)
18    data as to whether the residential units are single family
19    or multi-family units, (ii) the number and type of rooms
20    within the units, if that information is available, (iii)
21    whether the units are inhabited or uninhabited, as
22    determined not less than 45 days before the date that the
23    ordinance or resolution required by subsection (a) of
24    Section 11-74.4-5 is passed, and (iv) data as to the racial
25    and ethnic composition of the residents in the inhabited
26    residential units. The data requirement as to the racial

 

 

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1    and ethnic composition of the residents in the inhabited
2    residential units shall be deemed to be fully satisfied by
3    data from the most recent federal census.
4        Part II of the housing impact study shall identify the
5    inhabited residential units in the proposed redevelopment
6    project area that are to be or may be removed. If inhabited
7    residential units are to be removed, then the housing
8    impact study shall identify (i) the number and location of
9    those units that will or may be removed, (ii) the
10    municipality's plans for relocation assistance for those
11    residents in the proposed redevelopment project area whose
12    residences are to be removed, (iii) the availability of
13    replacement housing for those residents whose residences
14    are to be removed, and shall identify the type, location,
15    and cost of the housing, and (iv) the type and extent of
16    relocation assistance to be provided.
17        (6) On and after November 1, 1999, the housing impact
18    study required by paragraph (5) shall be incorporated in
19    the redevelopment plan for the redevelopment project area.
20        (7) On and after November 1, 1999, no redevelopment
21    plan shall be adopted, nor an existing plan amended, nor
22    shall residential housing that is occupied by households of
23    low-income and very low-income persons in currently
24    existing redevelopment project areas be removed after
25    November 1, 1999 unless the redevelopment plan provides,
26    with respect to inhabited housing units that are to be

 

 

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1    removed for households of low-income and very low-income
2    persons, affordable housing and relocation assistance not
3    less than that which would be provided under the federal
4    Uniform Relocation Assistance and Real Property
5    Acquisition Policies Act of 1970 and the regulations under
6    that Act, including the eligibility criteria. Affordable
7    housing may be either existing or newly constructed
8    housing. For purposes of this paragraph (7), "low-income
9    households", "very low-income households", and "affordable
10    housing" have the meanings set forth in the Illinois
11    Affordable Housing Act. The municipality shall make a good
12    faith effort to ensure that this affordable housing is
13    located in or near the redevelopment project area within
14    the municipality.
15        (8) On and after November 1, 1999, if, after the
16    adoption of the redevelopment plan for the redevelopment
17    project area, any municipality desires to amend its
18    redevelopment plan to remove more inhabited residential
19    units than specified in its original redevelopment plan,
20    that change shall be made in accordance with the procedures
21    in subsection (c) of Section 11-74.4-5.
22        (9) For redevelopment project areas designated prior
23    to November 1, 1999, the redevelopment plan may be amended
24    without further joint review board meeting or hearing,
25    provided that the municipality shall give notice of any
26    such changes by mail to each affected taxing district and

 

 

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1    registrant on the interested party registry, to authorize
2    the municipality to expend tax increment revenues for
3    redevelopment project costs defined by paragraphs (5) and
4    (7.5), subparagraphs (E) and (F) of paragraph (11), and
5    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
6    long as the changes do not increase the total estimated
7    redevelopment project costs set out in the redevelopment
8    plan by more than 5% after adjustment for inflation from
9    the date the plan was adopted.
10    (o) "Redevelopment project" means any public and private
11development project in furtherance of the objectives of a
12redevelopment plan. On and after November 1, 1999 (the
13effective date of Public Act 91-478), no redevelopment plan may
14be approved or amended that includes the development of vacant
15land (i) with a golf course and related clubhouse and other
16facilities or (ii) designated by federal, State, county, or
17municipal government as public land for outdoor recreational
18activities or for nature preserves and used for that purpose
19within 5 years prior to the adoption of the redevelopment plan.
20For the purpose of this subsection, "recreational activities"
21is limited to mean camping and hunting.
22    (p) "Redevelopment project area" means an area designated
23by the municipality, which is not less in the aggregate than 1
241/2 acres and in respect to which the municipality has made a
25finding that there exist conditions which cause the area to be
26classified as an industrial park conservation area or a

 

 

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1blighted area or a conservation area, or a combination of both
2blighted areas and conservation areas.
3    (p-1) Notwithstanding any provision of this Act to the
4contrary, on and after August 25, 2009 (the effective date of
5Public Act 96-680), a redevelopment project area may include
6areas within a one-half mile radius of an existing or proposed
7Regional Transportation Authority Suburban Transit Access
8Route (STAR Line) station without a finding that the area is
9classified as an industrial park conservation area, a blighted
10area, a conservation area, or a combination thereof, but only
11if the municipality receives unanimous consent from the joint
12review board created to review the proposed redevelopment
13project area.
14    (p-2) Notwithstanding any provision of this Act to the
15contrary, on and after the effective date of this amendatory
16Act of the 99th General Assembly, a redevelopment project area
17may include areas within a transit facility improvement area
18that has been established pursuant to Section 11-74.4-3.3
19without a finding that the area is classified as an industrial
20park conservation area, a blighted area, a conservation area,
21or any combination thereof.
22    (q) "Redevelopment project costs", except for
23redevelopment project areas created pursuant to subsection
24subsections (p-1) or (p-2), means and includes the sum total of
25all reasonable or necessary costs incurred or estimated to be
26incurred, and any such costs incidental to a redevelopment plan

 

 

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1and a redevelopment project. Such costs include, without
2limitation, the following:
3        (1) Costs of studies, surveys, development of plans,
4    and specifications, implementation and administration of
5    the redevelopment plan including but not limited to staff
6    and professional service costs for architectural,
7    engineering, legal, financial, planning or other services,
8    provided however that no charges for professional services
9    may be based on a percentage of the tax increment
10    collected; except that on and after November 1, 1999 (the
11    effective date of Public Act 91-478), no contracts for
12    professional services, excluding architectural and
13    engineering services, may be entered into if the terms of
14    the contract extend beyond a period of 3 years. In
15    addition, "redevelopment project costs" shall not include
16    lobbying expenses. After consultation with the
17    municipality, each tax increment consultant or advisor to a
18    municipality that plans to designate or has designated a
19    redevelopment project area shall inform the municipality
20    in writing of any contracts that the consultant or advisor
21    has entered into with entities or individuals that have
22    received, or are receiving, payments financed by tax
23    increment revenues produced by the redevelopment project
24    area with respect to which the consultant or advisor has
25    performed, or will be performing, service for the
26    municipality. This requirement shall be satisfied by the

 

 

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1    consultant or advisor before the commencement of services
2    for the municipality and thereafter whenever any other
3    contracts with those individuals or entities are executed
4    by the consultant or advisor;
5        (1.5) After July 1, 1999, annual administrative costs
6    shall not include general overhead or administrative costs
7    of the municipality that would still have been incurred by
8    the municipality if the municipality had not designated a
9    redevelopment project area or approved a redevelopment
10    plan;
11        (1.6) The cost of marketing sites within the
12    redevelopment project area to prospective businesses,
13    developers, and investors;
14        (2) Property assembly costs, including but not limited
15    to acquisition of land and other property, real or
16    personal, or rights or interests therein, demolition of
17    buildings, site preparation, site improvements that serve
18    as an engineered barrier addressing ground level or below
19    ground environmental contamination, including, but not
20    limited to parking lots and other concrete or asphalt
21    barriers, and the clearing and grading of land;
22        (3) Costs of rehabilitation, reconstruction or repair
23    or remodeling of existing public or private buildings,
24    fixtures, and leasehold improvements; and the cost of
25    replacing an existing public building if pursuant to the
26    implementation of a redevelopment project the existing

 

 

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1    public building is to be demolished to use the site for
2    private investment or devoted to a different use requiring
3    private investment; including any direct or indirect costs
4    relating to Green Globes or LEED certified construction
5    elements or construction elements with an equivalent
6    certification;
7        (4) Costs of the construction of public works or
8    improvements, including any direct or indirect costs
9    relating to Green Globes or LEED certified construction
10    elements or construction elements with an equivalent
11    certification, except that on and after November 1, 1999,
12    redevelopment project costs shall not include the cost of
13    constructing a new municipal public building principally
14    used to provide offices, storage space, or conference
15    facilities or vehicle storage, maintenance, or repair for
16    administrative, public safety, or public works personnel
17    and that is not intended to replace an existing public
18    building as provided under paragraph (3) of subsection (q)
19    of Section 11-74.4-3 unless either (i) the construction of
20    the new municipal building implements a redevelopment
21    project that was included in a redevelopment plan that was
22    adopted by the municipality prior to November 1, 1999, (ii)
23    the municipality makes a reasonable determination in the
24    redevelopment plan, supported by information that provides
25    the basis for that determination, that the new municipal
26    building is required to meet an increase in the need for

 

 

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1    public safety purposes anticipated to result from the
2    implementation of the redevelopment plan, or (iii) the new
3    municipal public building is for the storage, maintenance,
4    or repair of transit vehicles and is located in a transit
5    facility improvement area that has been established
6    pursuant to Section 11-74.4-3.3;
7        (5) Costs of job training and retraining projects,
8    including the cost of "welfare to work" programs
9    implemented by businesses located within the redevelopment
10    project area;
11        (6) Financing costs, including but not limited to all
12    necessary and incidental expenses related to the issuance
13    of obligations and which may include payment of interest on
14    any obligations issued hereunder including interest
15    accruing during the estimated period of construction of any
16    redevelopment project for which such obligations are
17    issued and for not exceeding 36 months thereafter and
18    including reasonable reserves related thereto;
19        (7) To the extent the municipality by written agreement
20    accepts and approves the same, all or a portion of a taxing
21    district's capital costs resulting from the redevelopment
22    project necessarily incurred or to be incurred within a
23    taxing district in furtherance of the objectives of the
24    redevelopment plan and project; .
25        (7.5) For redevelopment project areas designated (or
26    redevelopment project areas amended to add or increase the

 

 

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1    number of tax-increment-financing assisted housing units)
2    on or after November 1, 1999, an elementary, secondary, or
3    unit school district's increased costs attributable to
4    assisted housing units located within the redevelopment
5    project area for which the developer or redeveloper
6    receives financial assistance through an agreement with
7    the municipality or because the municipality incurs the
8    cost of necessary infrastructure improvements within the
9    boundaries of the assisted housing sites necessary for the
10    completion of that housing as authorized by this Act, and
11    which costs shall be paid by the municipality from the
12    Special Tax Allocation Fund when the tax increment revenue
13    is received as a result of the assisted housing units and
14    shall be calculated annually as follows:
15            (A) for foundation districts, excluding any school
16        district in a municipality with a population in excess
17        of 1,000,000, by multiplying the district's increase
18        in attendance resulting from the net increase in new
19        students enrolled in that school district who reside in
20        housing units within the redevelopment project area
21        that have received financial assistance through an
22        agreement with the municipality or because the
23        municipality incurs the cost of necessary
24        infrastructure improvements within the boundaries of
25        the housing sites necessary for the completion of that
26        housing as authorized by this Act since the designation

 

 

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1        of the redevelopment project area by the most recently
2        available per capita tuition cost as defined in Section
3        10-20.12a of the School Code less any increase in
4        general State aid as defined in Section 18-8.05 of the
5        School Code or evidence-based funding as defined in
6        Section 18-8.15 of the School Code attributable to
7        these added new students subject to the following
8        annual limitations:
9                (i) for unit school districts with a district
10            average 1995-96 Per Capita Tuition Charge of less
11            than $5,900, no more than 25% of the total amount
12            of property tax increment revenue produced by
13            those housing units that have received tax
14            increment finance assistance under this Act;
15                (ii) for elementary school districts with a
16            district average 1995-96 Per Capita Tuition Charge
17            of less than $5,900, no more than 17% of the total
18            amount of property tax increment revenue produced
19            by those housing units that have received tax
20            increment finance assistance under this Act; and
21                (iii) for secondary school districts with a
22            district average 1995-96 Per Capita Tuition Charge
23            of less than $5,900, no more than 8% of the total
24            amount of property tax increment revenue produced
25            by those housing units that have received tax
26            increment finance assistance under this Act.

 

 

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1            (B) For alternate method districts, flat grant
2        districts, and foundation districts with a district
3        average 1995-96 Per Capita Tuition Charge equal to or
4        more than $5,900, excluding any school district with a
5        population in excess of 1,000,000, by multiplying the
6        district's increase in attendance resulting from the
7        net increase in new students enrolled in that school
8        district who reside in housing units within the
9        redevelopment project area that have received
10        financial assistance through an agreement with the
11        municipality or because the municipality incurs the
12        cost of necessary infrastructure improvements within
13        the boundaries of the housing sites necessary for the
14        completion of that housing as authorized by this Act
15        since the designation of the redevelopment project
16        area by the most recently available per capita tuition
17        cost as defined in Section 10-20.12a of the School Code
18        less any increase in general state aid as defined in
19        Section 18-8.05 of the School Code or evidence-based
20        funding as defined in Section 18-8.15 of the School
21        Code attributable to these added new students subject
22        to the following annual limitations:
23                (i) for unit school districts, no more than 40%
24            of the total amount of property tax increment
25            revenue produced by those housing units that have
26            received tax increment finance assistance under

 

 

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1            this Act;
2                (ii) for elementary school districts, no more
3            than 27% of the total amount of property tax
4            increment revenue produced by those housing units
5            that have received tax increment finance
6            assistance under this Act; and
7                (iii) for secondary school districts, no more
8            than 13% of the total amount of property tax
9            increment revenue produced by those housing units
10            that have received tax increment finance
11            assistance under this Act.
12            (C) For any school district in a municipality with
13        a population in excess of 1,000,000, the following
14        restrictions shall apply to the reimbursement of
15        increased costs under this paragraph (7.5):
16                (i) no increased costs shall be reimbursed
17            unless the school district certifies that each of
18            the schools affected by the assisted housing
19            project is at or over its student capacity;
20                (ii) the amount reimbursable shall be reduced
21            by the value of any land donated to the school
22            district by the municipality or developer, and by
23            the value of any physical improvements made to the
24            schools by the municipality or developer; and
25                (iii) the amount reimbursed may not affect
26            amounts otherwise obligated by the terms of any

 

 

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1            bonds, notes, or other funding instruments, or the
2            terms of any redevelopment agreement.
3        Any school district seeking payment under this
4        paragraph (7.5) shall, after July 1 and before
5        September 30 of each year, provide the municipality
6        with reasonable evidence to support its claim for
7        reimbursement before the municipality shall be
8        required to approve or make the payment to the school
9        district. If the school district fails to provide the
10        information during this period in any year, it shall
11        forfeit any claim to reimbursement for that year.
12        School districts may adopt a resolution waiving the
13        right to all or a portion of the reimbursement
14        otherwise required by this paragraph (7.5). By
15        acceptance of this reimbursement the school district
16        waives the right to directly or indirectly set aside,
17        modify, or contest in any manner the establishment of
18        the redevelopment project area or projects;
19        (7.7) For redevelopment project areas designated (or
20    redevelopment project areas amended to add or increase the
21    number of tax-increment-financing assisted housing units)
22    on or after January 1, 2005 (the effective date of Public
23    Act 93-961), a public library district's increased costs
24    attributable to assisted housing units located within the
25    redevelopment project area for which the developer or
26    redeveloper receives financial assistance through an

 

 

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1    agreement with the municipality or because the
2    municipality incurs the cost of necessary infrastructure
3    improvements within the boundaries of the assisted housing
4    sites necessary for the completion of that housing as
5    authorized by this Act shall be paid to the library
6    district by the municipality from the Special Tax
7    Allocation Fund when the tax increment revenue is received
8    as a result of the assisted housing units. This paragraph
9    (7.7) applies only if (i) the library district is located
10    in a county that is subject to the Property Tax Extension
11    Limitation Law or (ii) the library district is not located
12    in a county that is subject to the Property Tax Extension
13    Limitation Law but the district is prohibited by any other
14    law from increasing its tax levy rate without a prior voter
15    referendum.
16        The amount paid to a library district under this
17    paragraph (7.7) shall be calculated by multiplying (i) the
18    net increase in the number of persons eligible to obtain a
19    library card in that district who reside in housing units
20    within the redevelopment project area that have received
21    financial assistance through an agreement with the
22    municipality or because the municipality incurs the cost of
23    necessary infrastructure improvements within the
24    boundaries of the housing sites necessary for the
25    completion of that housing as authorized by this Act since
26    the designation of the redevelopment project area by (ii)

 

 

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1    the per-patron cost of providing library services so long
2    as it does not exceed $120. The per-patron cost shall be
3    the Total Operating Expenditures Per Capita for the library
4    in the previous fiscal year. The municipality may deduct
5    from the amount that it must pay to a library district
6    under this paragraph any amount that it has voluntarily
7    paid to the library district from the tax increment
8    revenue. The amount paid to a library district under this
9    paragraph (7.7) shall be no more than 2% of the amount
10    produced by the assisted housing units and deposited into
11    the Special Tax Allocation Fund.
12        A library district is not eligible for any payment
13    under this paragraph (7.7) unless the library district has
14    experienced an increase in the number of patrons from the
15    municipality that created the tax-increment-financing
16    district since the designation of the redevelopment
17    project area.
18        Any library district seeking payment under this
19    paragraph (7.7) shall, after July 1 and before September 30
20    of each year, provide the municipality with convincing
21    evidence to support its claim for reimbursement before the
22    municipality shall be required to approve or make the
23    payment to the library district. If the library district
24    fails to provide the information during this period in any
25    year, it shall forfeit any claim to reimbursement for that
26    year. Library districts may adopt a resolution waiving the

 

 

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1    right to all or a portion of the reimbursement otherwise
2    required by this paragraph (7.7). By acceptance of such
3    reimbursement, the library district shall forfeit any
4    right to directly or indirectly set aside, modify, or
5    contest in any manner whatsoever the establishment of the
6    redevelopment project area or projects;
7        (8) Relocation costs to the extent that a municipality
8    determines that relocation costs shall be paid or is
9    required to make payment of relocation costs by federal or
10    State law or in order to satisfy subparagraph (7) of
11    subsection (n);
12        (9) Payment in lieu of taxes;
13        (10) Costs of job training, retraining, advanced
14    vocational education or career education, including but
15    not limited to courses in occupational, semi-technical or
16    technical fields leading directly to employment, incurred
17    by one or more taxing districts, provided that such costs
18    (i) are related to the establishment and maintenance of
19    additional job training, advanced vocational education or
20    career education programs for persons employed or to be
21    employed by employers located in a redevelopment project
22    area; and (ii) when incurred by a taxing district or taxing
23    districts other than the municipality, are set forth in a
24    written agreement by or among the municipality and the
25    taxing district or taxing districts, which agreement
26    describes the program to be undertaken, including but not

 

 

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1    limited to the number of employees to be trained, a
2    description of the training and services to be provided,
3    the number and type of positions available or to be
4    available, itemized costs of the program and sources of
5    funds to pay for the same, and the term of the agreement.
6    Such costs include, specifically, the payment by community
7    college districts of costs pursuant to Sections 3-37, 3-38,
8    3-40 and 3-40.1 of the Public Community College Act and by
9    school districts of costs pursuant to Sections 10-22.20a
10    and 10-23.3a of the The School Code;
11        (11) Interest cost incurred by a redeveloper related to
12    the construction, renovation or rehabilitation of a
13    redevelopment project provided that:
14            (A) such costs are to be paid directly from the
15        special tax allocation fund established pursuant to
16        this Act;
17            (B) such payments in any one year may not exceed
18        30% of the annual interest costs incurred by the
19        redeveloper with regard to the redevelopment project
20        during that year;
21            (C) if there are not sufficient funds available in
22        the special tax allocation fund to make the payment
23        pursuant to this paragraph (11) then the amounts so due
24        shall accrue and be payable when sufficient funds are
25        available in the special tax allocation fund;
26            (D) the total of such interest payments paid

 

 

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1        pursuant to this Act may not exceed 30% of the total
2        (i) cost paid or incurred by the redeveloper for the
3        redevelopment project plus (ii) redevelopment project
4        costs excluding any property assembly costs and any
5        relocation costs incurred by a municipality pursuant
6        to this Act; and
7            (E) the cost limits set forth in subparagraphs (B)
8        and (D) of paragraph (11) shall be modified for the
9        financing of rehabilitated or new housing units for
10        low-income households and very low-income households,
11        as defined in Section 3 of the Illinois Affordable
12        Housing Act. The percentage of 75% shall be substituted
13        for 30% in subparagraphs (B) and (D) of paragraph (11);
14        and .
15            (F) instead Instead of the eligible costs provided
16        by subparagraphs (B) and (D) of paragraph (11), as
17        modified by this subparagraph, and notwithstanding any
18        other provisions of this Act to the contrary, the
19        municipality may pay from tax increment revenues up to
20        50% of the cost of construction of new housing units to
21        be occupied by low-income households and very
22        low-income households as defined in Section 3 of the
23        Illinois Affordable Housing Act. The cost of
24        construction of those units may be derived from the
25        proceeds of bonds issued by the municipality under this
26        Act or other constitutional or statutory authority or

 

 

10000SB1947ham005- 148 -LRB100 09675 JWD 28950 a

1        from other sources of municipal revenue that may be
2        reimbursed from tax increment revenues or the proceeds
3        of bonds issued to finance the construction of that
4        housing.
5            The eligible costs provided under this
6        subparagraph (F) of paragraph (11) shall be an eligible
7        cost for the construction, renovation, and
8        rehabilitation of all low and very low-income housing
9        units, as defined in Section 3 of the Illinois
10        Affordable Housing Act, within the redevelopment
11        project area. If the low and very low-income units are
12        part of a residential redevelopment project that
13        includes units not affordable to low and very
14        low-income households, only the low and very
15        low-income units shall be eligible for benefits under
16        this subparagraph (F) of paragraph (11). The standards
17        for maintaining the occupancy by low-income households
18        and very low-income households, as defined in Section 3
19        of the Illinois Affordable Housing Act, of those units
20        constructed with eligible costs made available under
21        the provisions of this subparagraph (F) of paragraph
22        (11) shall be established by guidelines adopted by the
23        municipality. The responsibility for annually
24        documenting the initial occupancy of the units by
25        low-income households and very low-income households,
26        as defined in Section 3 of the Illinois Affordable

 

 

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1        Housing Act, shall be that of the then current owner of
2        the property. For ownership units, the guidelines will
3        provide, at a minimum, for a reasonable recapture of
4        funds, or other appropriate methods designed to
5        preserve the original affordability of the ownership
6        units. For rental units, the guidelines will provide,
7        at a minimum, for the affordability of rent to low and
8        very low-income households. As units become available,
9        they shall be rented to income-eligible tenants. The
10        municipality may modify these guidelines from time to
11        time; the guidelines, however, shall be in effect for
12        as long as tax increment revenue is being used to pay
13        for costs associated with the units or for the
14        retirement of bonds issued to finance the units or for
15        the life of the redevelopment project area, whichever
16        is later; .
17        (11.5) If the redevelopment project area is located
18    within a municipality with a population of more than
19    100,000, the cost of day care services for children of
20    employees from low-income families working for businesses
21    located within the redevelopment project area and all or a
22    portion of the cost of operation of day care centers
23    established by redevelopment project area businesses to
24    serve employees from low-income families working in
25    businesses located in the redevelopment project area. For
26    the purposes of this paragraph, "low-income families"

 

 

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1    means families whose annual income does not exceed 80% of
2    the municipal, county, or regional median income, adjusted
3    for family size, as the annual income and municipal,
4    county, or regional median income are determined from time
5    to time by the United States Department of Housing and
6    Urban Development.
7    (12) Unless explicitly stated herein the cost of
8construction of new privately-owned buildings shall not be an
9eligible redevelopment project cost.
10    (13) After November 1, 1999 (the effective date of Public
11Act 91-478), none of the redevelopment project costs enumerated
12in this subsection shall be eligible redevelopment project
13costs if those costs would provide direct financial support to
14a retail entity initiating operations in the redevelopment
15project area while terminating operations at another Illinois
16location within 10 miles of the redevelopment project area but
17outside the boundaries of the redevelopment project area
18municipality. For purposes of this paragraph, termination
19means a closing of a retail operation that is directly related
20to the opening of the same operation or like retail entity
21owned or operated by more than 50% of the original ownership in
22a redevelopment project area, but it does not mean closing an
23operation for reasons beyond the control of the retail entity,
24as documented by the retail entity, subject to a reasonable
25finding by the municipality that the current location contained
26inadequate space, had become economically obsolete, or was no

 

 

10000SB1947ham005- 151 -LRB100 09675 JWD 28950 a

1longer a viable location for the retailer or serviceman.
2    (14) No cost shall be a redevelopment project cost in a
3redevelopment project area if used to demolish, remove, or
4substantially modify a historic resource, after August 26, 2008
5(the effective date of Public Act 95-934), unless no prudent
6and feasible alternative exists. "Historic resource" for the
7purpose of this paragraph item (14) means (i) a place or
8structure that is included or eligible for inclusion on the
9National Register of Historic Places or (ii) a contributing
10structure in a district on the National Register of Historic
11Places. This paragraph item (14) does not apply to a place or
12structure for which demolition, removal, or modification is
13subject to review by the preservation agency of a Certified
14Local Government designated as such by the National Park
15Service of the United States Department of the Interior.
16    If a special service area has been established pursuant to
17the Special Service Area Tax Act or Special Service Area Tax
18Law, then any tax increment revenues derived from the tax
19imposed pursuant to the Special Service Area Tax Act or Special
20Service Area Tax Law may be used within the redevelopment
21project area for the purposes permitted by that Act or Law as
22well as the purposes permitted by this Act.
23    (q-1) For redevelopment project areas created pursuant to
24subsection (p-1), redevelopment project costs are limited to
25those costs in paragraph (q) that are related to the existing
26or proposed Regional Transportation Authority Suburban Transit

 

 

10000SB1947ham005- 152 -LRB100 09675 JWD 28950 a

1Access Route (STAR Line) station.
2    (q-2) For a redevelopment project area located within a
3transit facility improvement area established pursuant to
4Section 11-74.4-3.3, redevelopment project costs means those
5costs described in subsection (q) that are related to the
6construction, reconstruction, rehabilitation, remodeling, or
7repair of any existing or proposed transit facility.
8    (r) "State Sales Tax Boundary" means the redevelopment
9project area or the amended redevelopment project area
10boundaries which are determined pursuant to subsection (9) of
11Section 11-74.4-8a of this Act. The Department of Revenue shall
12certify pursuant to subsection (9) of Section 11-74.4-8a the
13appropriate boundaries eligible for the determination of State
14Sales Tax Increment.
15    (s) "State Sales Tax Increment" means an amount equal to
16the increase in the aggregate amount of taxes paid by retailers
17and servicemen, other than retailers and servicemen subject to
18the Public Utilities Act, on transactions at places of business
19located within a State Sales Tax Boundary pursuant to the
20Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
21Tax Act, and the Service Occupation Tax Act, except such
22portion of such increase that is paid into the State and Local
23Sales Tax Reform Fund, the Local Government Distributive Fund,
24the Local Government Tax Fund and the County and Mass Transit
25District Fund, for as long as State participation exists, over
26and above the Initial Sales Tax Amounts, Adjusted Initial Sales

 

 

10000SB1947ham005- 153 -LRB100 09675 JWD 28950 a

1Tax Amounts or the Revised Initial Sales Tax Amounts for such
2taxes as certified by the Department of Revenue and paid under
3those Acts by retailers and servicemen on transactions at
4places of business located within the State Sales Tax Boundary
5during the base year which shall be the calendar year
6immediately prior to the year in which the municipality adopted
7tax increment allocation financing, less 3.0% of such amounts
8generated under the Retailers' Occupation Tax Act, Use Tax Act
9and Service Use Tax Act and the Service Occupation Tax Act,
10which sum shall be appropriated to the Department of Revenue to
11cover its costs of administering and enforcing this Section.
12For purposes of computing the aggregate amount of such taxes
13for base years occurring prior to 1985, the Department of
14Revenue shall compute the Initial Sales Tax Amount for such
15taxes and deduct therefrom an amount equal to 4% of the
16aggregate amount of taxes per year for each year the base year
17is prior to 1985, but not to exceed a total deduction of 12%.
18The amount so determined shall be known as the "Adjusted
19Initial Sales Tax Amount". For purposes of determining the
20State Sales Tax Increment the Department of Revenue shall for
21each period subtract from the tax amounts received from
22retailers and servicemen on transactions located in the State
23Sales Tax Boundary, the certified Initial Sales Tax Amounts,
24Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
25Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
26the Service Use Tax Act and the Service Occupation Tax Act. For

 

 

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1the State Fiscal Year 1989 this calculation shall be made by
2utilizing the calendar year 1987 to determine the tax amounts
3received. For the State Fiscal Year 1990, this calculation
4shall be made by utilizing the period from January 1, 1988,
5until September 30, 1988, to determine the tax amounts received
6from retailers and servicemen, which shall have deducted
7therefrom nine-twelfths of the certified Initial Sales Tax
8Amounts, Adjusted Initial Sales Tax Amounts or the Revised
9Initial Sales Tax Amounts as appropriate. For the State Fiscal
10Year 1991, this calculation shall be made by utilizing the
11period from October 1, 1988, until June 30, 1989, to determine
12the tax amounts received from retailers and servicemen, which
13shall have deducted therefrom nine-twelfths of the certified
14Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
15Amounts or the Revised Initial Sales Tax Amounts as
16appropriate. For every State Fiscal Year thereafter, the
17applicable period shall be the 12 months beginning July 1 and
18ending on June 30, to determine the tax amounts received which
19shall have deducted therefrom the certified Initial Sales Tax
20Amounts, Adjusted Initial Sales Tax Amounts or the Revised
21Initial Sales Tax Amounts. Municipalities intending to receive
22a distribution of State Sales Tax Increment must report a list
23of retailers to the Department of Revenue by October 31, 1988
24and by July 31, of each year thereafter.
25    (t) "Taxing districts" means counties, townships, cities
26and incorporated towns and villages, school, road, park,

 

 

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1sanitary, mosquito abatement, forest preserve, public health,
2fire protection, river conservancy, tuberculosis sanitarium
3and any other municipal corporations or districts with the
4power to levy taxes.
5    (u) "Taxing districts' capital costs" means those costs of
6taxing districts for capital improvements that are found by the
7municipal corporate authorities to be necessary and directly
8result from the redevelopment project.
9    (v) As used in subsection (a) of Section 11-74.4-3 of this
10Act, "vacant land" means any parcel or combination of parcels
11of real property without industrial, commercial, and
12residential buildings which has not been used for commercial
13agricultural purposes within 5 years prior to the designation
14of the redevelopment project area, unless the parcel is
15included in an industrial park conservation area or the parcel
16has been subdivided; provided that if the parcel was part of a
17larger tract that has been divided into 3 or more smaller
18tracts that were accepted for recording during the period from
191950 to 1990, then the parcel shall be deemed to have been
20subdivided, and all proceedings and actions of the municipality
21taken in that connection with respect to any previously
22approved or designated redevelopment project area or amended
23redevelopment project area are hereby validated and hereby
24declared to be legally sufficient for all purposes of this Act.
25For purposes of this Section and only for land subject to the
26subdivision requirements of the Plat Act, land is subdivided

 

 

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1when the original plat of the proposed Redevelopment Project
2Area or relevant portion thereof has been properly certified,
3acknowledged, approved, and recorded or filed in accordance
4with the Plat Act and a preliminary plat, if any, for any
5subsequent phases of the proposed Redevelopment Project Area or
6relevant portion thereof has been properly approved and filed
7in accordance with the applicable ordinance of the
8municipality.
9    (w) "Annual Total Increment" means the sum of each
10municipality's annual Net Sales Tax Increment and each
11municipality's annual Net Utility Tax Increment. The ratio of
12the Annual Total Increment of each municipality to the Annual
13Total Increment for all municipalities, as most recently
14calculated by the Department, shall determine the proportional
15shares of the Illinois Tax Increment Fund to be distributed to
16each municipality.
17    (x) "LEED certified" means any certification level of
18construction elements by a qualified Leadership in Energy and
19Environmental Design Accredited Professional as determined by
20the U.S. Green Building Council.
21    (y) "Green Globes certified" means any certification level
22of construction elements by a qualified Green Globes
23Professional as determined by the Green Building Initiative.
24(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
25    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)

 

 

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1    Sec. 11-74.4-8. Tax increment allocation financing. A
2municipality may not adopt tax increment financing in a
3redevelopment project area after the effective date of this
4amendatory Act of 1997 that will encompass an area that is
5currently included in an enterprise zone created under the
6Illinois Enterprise Zone Act unless that municipality,
7pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
8amends the enterprise zone designating ordinance to limit the
9eligibility for tax abatements as provided in Section 5.4.1 of
10the Illinois Enterprise Zone Act. A municipality, at the time a
11redevelopment project area is designated, may adopt tax
12increment allocation financing by passing an ordinance
13providing that the ad valorem taxes, if any, arising from the
14levies upon taxable real property in such redevelopment project
15area by taxing districts and tax rates determined in the manner
16provided in paragraph (c) of Section 11-74.4-9 each year after
17the effective date of the ordinance until redevelopment project
18costs and all municipal obligations financing redevelopment
19project costs incurred under this Division have been paid shall
20be divided as follows, provided, however, that with respect to
21any redevelopment project area located within a transit
22facility improvement area established pursuant to Section
2311-74.4-3.3 in a municipality with a population of 1,000,000 or
24more, ad valorem taxes, if any, arising from the levies upon
25taxable real property in such redevelopment project area shall
26be allocated as specifically provided in this Section:

 

 

10000SB1947ham005- 158 -LRB100 09675 JWD 28950 a

1        (a) That portion of taxes levied upon each taxable lot,
2    block, tract or parcel of real property which is
3    attributable to the lower of the current equalized assessed
4    value or the initial equalized assessed value of each such
5    taxable lot, block, tract or parcel of real property in the
6    redevelopment project area shall be allocated to and when
7    collected shall be paid by the county collector to the
8    respective affected taxing districts in the manner
9    required by law in the absence of the adoption of tax
10    increment allocation financing.
11        (b) Except from a tax levied by a township to retire
12    bonds issued to satisfy court-ordered damages, that
13    portion, if any, of such taxes which is attributable to the
14    increase in the current equalized assessed valuation of
15    each taxable lot, block, tract or parcel of real property
16    in the redevelopment project area over and above the
17    initial equalized assessed value of each property in the
18    project area shall be allocated to and when collected shall
19    be paid to the municipal treasurer who shall deposit said
20    taxes into a special fund called the special tax allocation
21    fund of the municipality for the purpose of paying
22    redevelopment project costs and obligations incurred in
23    the payment thereof. In any county with a population of
24    3,000,000 or more that has adopted a procedure for
25    collecting taxes that provides for one or more of the
26    installments of the taxes to be billed and collected on an

 

 

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1    estimated basis, the municipal treasurer shall be paid for
2    deposit in the special tax allocation fund of the
3    municipality, from the taxes collected from estimated
4    bills issued for property in the redevelopment project
5    area, the difference between the amount actually collected
6    from each taxable lot, block, tract, or parcel of real
7    property within the redevelopment project area and an
8    amount determined by multiplying the rate at which taxes
9    were last extended against the taxable lot, block, track,
10    or parcel of real property in the manner provided in
11    subsection (c) of Section 11-74.4-9 by the initial
12    equalized assessed value of the property divided by the
13    number of installments in which real estate taxes are
14    billed and collected within the county; provided that the
15    payments on or before December 31, 1999 to a municipal
16    treasurer shall be made only if each of the following
17    conditions are met:
18        (1) The total equalized assessed value of the
19        redevelopment project area as last determined was not
20        less than 175% of the total initial equalized assessed
21        value.
22        (2) Not more than 50% of the total equalized assessed
23        value of the redevelopment project area as last
24        determined is attributable to a piece of property
25        assigned a single real estate index number.
26        (3) The municipal clerk has certified to the county

 

 

10000SB1947ham005- 160 -LRB100 09675 JWD 28950 a

1        clerk that the municipality has issued its obligations
2        to which there has been pledged the incremental
3        property taxes of the redevelopment project area or
4        taxes levied and collected on any or all property in
5        the municipality or the full faith and credit of the
6        municipality to pay or secure payment for all or a
7        portion of the redevelopment project costs. The
8        certification shall be filed annually no later than
9        September 1 for the estimated taxes to be distributed
10        in the following year; however, for the year 1992 the
11        certification shall be made at any time on or before
12        March 31, 1992.
13        (4) The municipality has not requested that the total
14        initial equalized assessed value of real property be
15        adjusted as provided in subsection (b) of Section
16        11-74.4-9.
17        The conditions of paragraphs (1) through (4) do not
18    apply after December 31, 1999 to payments to a municipal
19    treasurer made by a county with 3,000,000 or more
20    inhabitants that has adopted an estimated billing
21    procedure for collecting taxes. If a county that has
22    adopted the estimated billing procedure makes an erroneous
23    overpayment of tax revenue to the municipal treasurer, then
24    the county may seek a refund of that overpayment. The
25    county shall send the municipal treasurer a notice of
26    liability for the overpayment on or before the mailing date

 

 

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1    of the next real estate tax bill within the county. The
2    refund shall be limited to the amount of the overpayment.
3        It is the intent of this Division that after the
4    effective date of this amendatory Act of 1988 a
5    municipality's own ad valorem tax arising from levies on
6    taxable real property be included in the determination of
7    incremental revenue in the manner provided in paragraph (c)
8    of Section 11-74.4-9. If the municipality does not extend
9    such a tax, it shall annually deposit in the municipality's
10    Special Tax Increment Fund an amount equal to 10% of the
11    total contributions to the fund from all other taxing
12    districts in that year. The annual 10% deposit required by
13    this paragraph shall be limited to the actual amount of
14    municipally produced incremental tax revenues available to
15    the municipality from taxpayers located in the
16    redevelopment project area in that year if: (a) the plan
17    for the area restricts the use of the property primarily to
18    industrial purposes, (b) the municipality establishing the
19    redevelopment project area is a home-rule community with a
20    1990 population of between 25,000 and 50,000, (c) the
21    municipality is wholly located within a county with a 1990
22    population of over 750,000 and (d) the redevelopment
23    project area was established by the municipality prior to
24    June 1, 1990. This payment shall be in lieu of a
25    contribution of ad valorem taxes on real property. If no
26    such payment is made, any redevelopment project area of the

 

 

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1    municipality shall be dissolved.
2        If a municipality has adopted tax increment allocation
3    financing by ordinance and the County Clerk thereafter
4    certifies the "total initial equalized assessed value as
5    adjusted" of the taxable real property within such
6    redevelopment project area in the manner provided in
7    paragraph (b) of Section 11-74.4-9, each year after the
8    date of the certification of the total initial equalized
9    assessed value as adjusted until redevelopment project
10    costs and all municipal obligations financing
11    redevelopment project costs have been paid the ad valorem
12    taxes, if any, arising from the levies upon the taxable
13    real property in such redevelopment project area by taxing
14    districts and tax rates determined in the manner provided
15    in paragraph (c) of Section 11-74.4-9 shall be divided as
16    follows, provided, however, that with respect to any
17    redevelopment project area located within a transit
18    facility improvement area established pursuant to Section
19    11-74.4-3.3 in a municipality with a population of
20    1,000,000 or more, ad valorem taxes, if any, arising from
21    the levies upon the taxable real property in such
22    redevelopment project area shall be allocated as
23    specifically provided in this Section:
24        (1) That portion of the taxes levied upon each taxable
25        lot, block, tract or parcel of real property which is
26        attributable to the lower of the current equalized

 

 

10000SB1947ham005- 163 -LRB100 09675 JWD 28950 a

1        assessed value or "current equalized assessed value as
2        adjusted" or the initial equalized assessed value of
3        each such taxable lot, block, tract, or parcel of real
4        property existing at the time tax increment financing
5        was adopted, minus the total current homestead
6        exemptions under Article 15 of the Property Tax Code in
7        the redevelopment project area shall be allocated to
8        and when collected shall be paid by the county
9        collector to the respective affected taxing districts
10        in the manner required by law in the absence of the
11        adoption of tax increment allocation financing.
12        (2) That portion, if any, of such taxes which is
13        attributable to the increase in the current equalized
14        assessed valuation of each taxable lot, block, tract,
15        or parcel of real property in the redevelopment project
16        area, over and above the initial equalized assessed
17        value of each property existing at the time tax
18        increment financing was adopted, minus the total
19        current homestead exemptions pertaining to each piece
20        of property provided by Article 15 of the Property Tax
21        Code in the redevelopment project area, shall be
22        allocated to and when collected shall be paid to the
23        municipal Treasurer, who shall deposit said taxes into
24        a special fund called the special tax allocation fund
25        of the municipality for the purpose of paying
26        redevelopment project costs and obligations incurred

 

 

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1        in the payment thereof.
2        The municipality may pledge in the ordinance the funds
3    in and to be deposited in the special tax allocation fund
4    for the payment of such costs and obligations. No part of
5    the current equalized assessed valuation of each property
6    in the redevelopment project area attributable to any
7    increase above the total initial equalized assessed value,
8    or the total initial equalized assessed value as adjusted,
9    of such properties shall be used in calculating the general
10    State school aid formula, provided for in Section 18-8 of
11    the School Code, or the evidence-based funding formula,
12    provided for in Section 18-8.15 of the School Code, until
13    such time as all redevelopment project costs have been paid
14    as provided for in this Section.
15        Whenever a municipality issues bonds for the purpose of
16    financing redevelopment project costs, such municipality
17    may provide by ordinance for the appointment of a trustee,
18    which may be any trust company within the State, and for
19    the establishment of such funds or accounts to be
20    maintained by such trustee as the municipality shall deem
21    necessary to provide for the security and payment of the
22    bonds. If such municipality provides for the appointment of
23    a trustee, such trustee shall be considered the assignee of
24    any payments assigned by the municipality pursuant to such
25    ordinance and this Section. Any amounts paid to such
26    trustee as assignee shall be deposited in the funds or

 

 

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1    accounts established pursuant to such trust agreement, and
2    shall be held by such trustee in trust for the benefit of
3    the holders of the bonds, and such holders shall have a
4    lien on and a security interest in such funds or accounts
5    so long as the bonds remain outstanding and unpaid. Upon
6    retirement of the bonds, the trustee shall pay over any
7    excess amounts held to the municipality for deposit in the
8    special tax allocation fund.
9        When such redevelopment projects costs, including
10    without limitation all municipal obligations financing
11    redevelopment project costs incurred under this Division,
12    have been paid, all surplus funds then remaining in the
13    special tax allocation fund shall be distributed by being
14    paid by the municipal treasurer to the Department of
15    Revenue, the municipality and the county collector; first
16    to the Department of Revenue and the municipality in direct
17    proportion to the tax incremental revenue received from the
18    State and the municipality, but not to exceed the total
19    incremental revenue received from the State or the
20    municipality less any annual surplus distribution of
21    incremental revenue previously made; with any remaining
22    funds to be paid to the County Collector who shall
23    immediately thereafter pay said funds to the taxing
24    districts in the redevelopment project area in the same
25    manner and proportion as the most recent distribution by
26    the county collector to the affected districts of real

 

 

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1    property taxes from real property in the redevelopment
2    project area.
3        Upon the payment of all redevelopment project costs,
4    the retirement of obligations, the distribution of any
5    excess monies pursuant to this Section, and final closing
6    of the books and records of the redevelopment project area,
7    the municipality shall adopt an ordinance dissolving the
8    special tax allocation fund for the redevelopment project
9    area and terminating the designation of the redevelopment
10    project area as a redevelopment project area. Title to real
11    or personal property and public improvements acquired by or
12    for the municipality as a result of the redevelopment
13    project and plan shall vest in the municipality when
14    acquired and shall continue to be held by the municipality
15    after the redevelopment project area has been terminated.
16    Municipalities shall notify affected taxing districts
17    prior to November 1 if the redevelopment project area is to
18    be terminated by December 31 of that same year. If a
19    municipality extends estimated dates of completion of a
20    redevelopment project and retirement of obligations to
21    finance a redevelopment project, as allowed by this
22    amendatory Act of 1993, that extension shall not extend the
23    property tax increment allocation financing authorized by
24    this Section. Thereafter the rates of the taxing districts
25    shall be extended and taxes levied, collected and
26    distributed in the manner applicable in the absence of the

 

 

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1    adoption of tax increment allocation financing.
2        If a municipality with a population of 1,000,000 or
3    more has adopted by ordinance tax increment allocation
4    financing for a redevelopment project area located in a
5    transit facility improvement area established pursuant to
6    Section 11-74.4-3.3, for each year after the effective date
7    of the ordinance until redevelopment project costs and all
8    municipal obligations financing redevelopment project
9    costs have been paid, the ad valorem taxes, if any, arising
10    from the levies upon the taxable real property in that
11    redevelopment project area by taxing districts and tax
12    rates determined in the manner provided in paragraph (c) of
13    Section 11-74.4-9 shall be divided as follows:
14            (1) That portion of the taxes levied upon each
15        taxable lot, block, tract or parcel of real property
16        which is attributable to the lower of (i) the current
17        equalized assessed value or "current equalized
18        assessed value as adjusted" or (ii) the initial
19        equalized assessed value of each such taxable lot,
20        block, tract, or parcel of real property existing at
21        the time tax increment financing was adopted, minus the
22        total current homestead exemptions under Article 15 of
23        the Property Tax Code in the redevelopment project area
24        shall be allocated to and when collected shall be paid
25        by the county collector to the respective affected
26        taxing districts in the manner required by law in the

 

 

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1        absence of the adoption of tax increment allocation
2        financing.
3            (2) That portion, if any, of such taxes which is
4        attributable to the increase in the current equalized
5        assessed valuation of each taxable lot, block, tract,
6        or parcel of real property in the redevelopment project
7        area, over and above the initial equalized assessed
8        value of each property existing at the time tax
9        increment financing was adopted, minus the total
10        current homestead exemptions pertaining to each piece
11        of property provided by Article 15 of the Property Tax
12        Code in the redevelopment project area, shall be
13        allocated to and when collected shall be paid by the
14        county collector as follows:
15                (A) First, that portion which would be payable
16            to a school district whose boundaries are
17            coterminous with such municipality in the absence
18            of the adoption of tax increment allocation
19            financing, shall be paid to such school district in
20            the manner required by law in the absence of the
21            adoption of tax increment allocation financing;
22            then
23                (B) 80% of the remaining portion shall be paid
24            to the municipal Treasurer, who shall deposit said
25            taxes into a special fund called the special tax
26            allocation fund of the municipality for the

 

 

10000SB1947ham005- 169 -LRB100 09675 JWD 28950 a

1            purpose of paying redevelopment project costs and
2            obligations incurred in the payment thereof; and
3            then
4                (C) 20% of the remaining portion shall be paid
5            to the respective affected taxing districts, other
6            than the school district described in clause (a)
7            above, in the manner required by law in the absence
8            of the adoption of tax increment allocation
9            financing.
10    Nothing in this Section shall be construed as relieving
11property in such redevelopment project areas from being
12assessed as provided in the Property Tax Code or as relieving
13owners of such property from paying a uniform rate of taxes, as
14required by Section 4 of Article IX of the Illinois
15Constitution.
16(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
17    (65 ILCS 5/11-74.6-35)
18    Sec. 11-74.6-35. Ordinance for tax increment allocation
19financing.
20    (a) A municipality, at the time a redevelopment project
21area is designated, may adopt tax increment allocation
22financing by passing an ordinance providing that the ad valorem
23taxes, if any, arising from the levies upon taxable real
24property within the redevelopment project area by taxing
25districts and tax rates determined in the manner provided in

 

 

10000SB1947ham005- 170 -LRB100 09675 JWD 28950 a

1subsection (b) of Section 11-74.6-40 each year after the
2effective date of the ordinance until redevelopment project
3costs and all municipal obligations financing redevelopment
4project costs incurred under this Act have been paid shall be
5divided as follows:
6        (1) That portion of the taxes levied upon each taxable
7    lot, block, tract or parcel of real property that is
8    attributable to the lower of the current equalized assessed
9    value or the initial equalized assessed value or the
10    updated initial equalized assessed value of each taxable
11    lot, block, tract or parcel of real property in the
12    redevelopment project area shall be allocated to and when
13    collected shall be paid by the county collector to the
14    respective affected taxing districts in the manner
15    required by law without regard to the adoption of tax
16    increment allocation financing.
17        (2) That portion, if any, of those taxes that is
18    attributable to the increase in the current equalized
19    assessed value of each taxable lot, block, tract or parcel
20    of real property in the redevelopment project area, over
21    and above the initial equalized assessed value or the
22    updated initial equalized assessed value of each property
23    in the project area, shall be allocated to and when
24    collected shall be paid by the county collector to the
25    municipal treasurer who shall deposit that portion of those
26    taxes into a special fund called the special tax allocation

 

 

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1    fund of the municipality for the purpose of paying
2    redevelopment project costs and obligations incurred in
3    the payment of those costs and obligations. In any county
4    with a population of 3,000,000 or more that has adopted a
5    procedure for collecting taxes that provides for one or
6    more of the installments of the taxes to be billed and
7    collected on an estimated basis, the municipal treasurer
8    shall be paid for deposit in the special tax allocation
9    fund of the municipality, from the taxes collected from
10    estimated bills issued for property in the redevelopment
11    project area, the difference between the amount actually
12    collected from each taxable lot, block, tract, or parcel of
13    real property within the redevelopment project area and an
14    amount determined by multiplying the rate at which taxes
15    were last extended against the taxable lot, block, track,
16    or parcel of real property in the manner provided in
17    subsection (b) of Section 11-74.6-40 by the initial
18    equalized assessed value or the updated initial equalized
19    assessed value of the property divided by the number of
20    installments in which real estate taxes are billed and
21    collected within the county, provided that the payments on
22    or before December 31, 1999 to a municipal treasurer shall
23    be made only if each of the following conditions are met:
24            (A) The total equalized assessed value of the
25        redevelopment project area as last determined was not
26        less than 175% of the total initial equalized assessed

 

 

10000SB1947ham005- 172 -LRB100 09675 JWD 28950 a

1        value.
2            (B) Not more than 50% of the total equalized
3        assessed value of the redevelopment project area as
4        last determined is attributable to a piece of property
5        assigned a single real estate index number.
6            (C) The municipal clerk has certified to the county
7        clerk that the municipality has issued its obligations
8        to which there has been pledged the incremental
9        property taxes of the redevelopment project area or
10        taxes levied and collected on any or all property in
11        the municipality or the full faith and credit of the
12        municipality to pay or secure payment for all or a
13        portion of the redevelopment project costs. The
14        certification shall be filed annually no later than
15        September 1 for the estimated taxes to be distributed
16        in the following year.
17    The conditions of paragraphs (A) through (C) do not apply
18after December 31, 1999 to payments to a municipal treasurer
19made by a county with 3,000,000 or more inhabitants that has
20adopted an estimated billing procedure for collecting taxes. If
21a county that has adopted the estimated billing procedure makes
22an erroneous overpayment of tax revenue to the municipal
23treasurer, then the county may seek a refund of that
24overpayment. The county shall send the municipal treasurer a
25notice of liability for the overpayment on or before the
26mailing date of the next real estate tax bill within the

 

 

10000SB1947ham005- 173 -LRB100 09675 JWD 28950 a

1county. The refund shall be limited to the amount of the
2overpayment.
3    (b) It is the intent of this Act that a municipality's own
4ad valorem tax arising from levies on taxable real property be
5included in the determination of incremental revenue in the
6manner provided in paragraph (b) of Section 11-74.6-40.
7    (c) If a municipality has adopted tax increment allocation
8financing for a redevelopment project area by ordinance and the
9county clerk thereafter certifies the total initial equalized
10assessed value or the total updated initial equalized assessed
11value of the taxable real property within such redevelopment
12project area in the manner provided in paragraph (a) or (b) of
13Section 11-74.6-40, each year after the date of the
14certification of the total initial equalized assessed value or
15the total updated initial equalized assessed value until
16redevelopment project costs and all municipal obligations
17financing redevelopment project costs have been paid, the ad
18valorem taxes, if any, arising from the levies upon the taxable
19real property in the redevelopment project area by taxing
20districts and tax rates determined in the manner provided in
21paragraph (b) of Section 11-74.6-40 shall be divided as
22follows:
23        (1) That portion of the taxes levied upon each taxable
24    lot, block, tract or parcel of real property that is
25    attributable to the lower of the current equalized assessed
26    value or the initial equalized assessed value, or the

 

 

10000SB1947ham005- 174 -LRB100 09675 JWD 28950 a

1    updated initial equalized assessed value of each parcel if
2    the updated initial equalized assessed value of that parcel
3    has been certified in accordance with Section 11-74.6-40,
4    whichever has been most recently certified, of each taxable
5    lot, block, tract, or parcel of real property existing at
6    the time tax increment allocation financing was adopted in
7    the redevelopment project area, shall be allocated to and
8    when collected shall be paid by the county collector to the
9    respective affected taxing districts in the manner
10    required by law without regard to the adoption of tax
11    increment allocation financing.
12        (2) That portion, if any, of those taxes that is
13    attributable to the increase in the current equalized
14    assessed value of each taxable lot, block, tract, or parcel
15    of real property in the redevelopment project area, over
16    and above the initial equalized assessed value of each
17    property existing at the time tax increment allocation
18    financing was adopted in the redevelopment project area, or
19    the updated initial equalized assessed value of each parcel
20    if the updated initial equalized assessed value of that
21    parcel has been certified in accordance with Section
22    11-74.6-40, shall be allocated to and when collected shall
23    be paid to the municipal treasurer, who shall deposit those
24    taxes into a special fund called the special tax allocation
25    fund of the municipality for the purpose of paying
26    redevelopment project costs and obligations incurred in

 

 

10000SB1947ham005- 175 -LRB100 09675 JWD 28950 a

1    the payment thereof.
2    (d) The municipality may pledge in the ordinance the funds
3in and to be deposited in the special tax allocation fund for
4the payment of redevelopment project costs and obligations. No
5part of the current equalized assessed value of each property
6in the redevelopment project area attributable to any increase
7above the total initial equalized assessed value or the total
8initial updated equalized assessed value of the property, shall
9be used in calculating the general General State aid formula
10School Aid Formula, provided for in Section 18-8 of the School
11Code, or the evidence-based funding formula, provided for in
12Section 18-8.15 of the School Code, until all redevelopment
13project costs have been paid as provided for in this Section.
14    Whenever a municipality issues bonds for the purpose of
15financing redevelopment project costs, that municipality may
16provide by ordinance for the appointment of a trustee, which
17may be any trust company within the State, and for the
18establishment of any funds or accounts to be maintained by that
19trustee, as the municipality deems necessary to provide for the
20security and payment of the bonds. If the municipality provides
21for the appointment of a trustee, the trustee shall be
22considered the assignee of any payments assigned by the
23municipality under that ordinance and this Section. Any amounts
24paid to the trustee as assignee shall be deposited into the
25funds or accounts established under the trust agreement, and
26shall be held by the trustee in trust for the benefit of the

 

 

10000SB1947ham005- 176 -LRB100 09675 JWD 28950 a

1holders of the bonds. The holders of those bonds shall have a
2lien on and a security interest in those funds or accounts
3while the bonds remain outstanding and unpaid. Upon retirement
4of the bonds, the trustee shall pay over any excess amounts
5held to the municipality for deposit in the special tax
6allocation fund.
7    When the redevelopment projects costs, including without
8limitation all municipal obligations financing redevelopment
9project costs incurred under this Law, have been paid, all
10surplus funds then remaining in the special tax allocation fund
11shall be distributed by being paid by the municipal treasurer
12to the municipality and the county collector; first to the
13municipality in direct proportion to the tax incremental
14revenue received from the municipality, but not to exceed the
15total incremental revenue received from the municipality,
16minus any annual surplus distribution of incremental revenue
17previously made. Any remaining funds shall be paid to the
18county collector who shall immediately distribute that payment
19to the taxing districts in the redevelopment project area in
20the same manner and proportion as the most recent distribution
21by the county collector to the affected districts of real
22property taxes from real property situated in the redevelopment
23project area.
24    Upon the payment of all redevelopment project costs,
25retirement of obligations and the distribution of any excess
26moneys under this Section, the municipality shall adopt an

 

 

10000SB1947ham005- 177 -LRB100 09675 JWD 28950 a

1ordinance dissolving the special tax allocation fund for the
2redevelopment project area and terminating the designation of
3the redevelopment project area as a redevelopment project area.
4Thereafter the tax levies of taxing districts shall be
5extended, collected and distributed in the same manner
6applicable before the adoption of tax increment allocation
7financing. Municipality shall notify affected taxing districts
8prior to November if the redevelopment project area is to be
9terminated by December 31 of that same year.
10    Nothing in this Section shall be construed as relieving
11property in a redevelopment project area from being assessed as
12provided in the Property Tax Code or as relieving owners of
13that property from paying a uniform rate of taxes, as required
14by Section 4 of Article IX of the Illinois Constitution.
15(Source: P.A. 91-474, eff. 11-1-99.)
 
16    Section 960. The Economic Development Project Area Tax
17Increment Allocation Act of 1995 is amended by changing Section
1850 as follows:
 
19    (65 ILCS 110/50)
20    Sec. 50. Special tax allocation fund.
21    (a) If a county clerk has certified the "total initial
22equalized assessed value" of the taxable real property within
23an economic development project area in the manner provided in
24Section 45, each year after the date of the certification by

 

 

10000SB1947ham005- 178 -LRB100 09675 JWD 28950 a

1the county clerk of the "total initial equalized assessed
2value", until economic development project costs and all
3municipal obligations financing economic development project
4costs have been paid, the ad valorem taxes, if any, arising
5from the levies upon the taxable real property in the economic
6development project area by taxing districts and tax rates
7determined in the manner provided in subsection (b) of Section
845 shall be divided as follows:
9        (1) That portion of the taxes levied upon each taxable
10    lot, block, tract, or parcel of real property that is
11    attributable to the lower of the current equalized assessed
12    value or the initial equalized assessed value of each
13    taxable lot, block, tract, or parcel of real property
14    existing at the time tax increment financing was adopted
15    shall be allocated to (and when collected shall be paid by
16    the county collector to) the respective affected taxing
17    districts in the manner required by law in the absence of
18    the adoption of tax increment allocation financing.
19        (2) That portion, if any, of the taxes that is
20    attributable to the increase in the current equalized
21    assessed valuation of each taxable lot, block, tract, or
22    parcel of real property in the economic development project
23    area, over and above the initial equalized assessed value
24    of each property existing at the time tax increment
25    financing was adopted, shall be allocated to (and when
26    collected shall be paid to) the municipal treasurer, who

 

 

10000SB1947ham005- 179 -LRB100 09675 JWD 28950 a

1    shall deposit the taxes into a special fund (called the
2    special tax allocation fund of the municipality) for the
3    purpose of paying economic development project costs and
4    obligations incurred in the payment of those costs.
5    (b) The municipality, by an ordinance adopting tax
6increment allocation financing, may pledge the monies in and to
7be deposited into the special tax allocation fund for the
8payment of obligations issued under this Act and for the
9payment of economic development project costs. No part of the
10current equalized assessed valuation of each property in the
11economic development project area attributable to any increase
12above the total initial equalized assessed value of those
13properties shall be used in calculating the general State
14school aid formula under Section 18-8 of the School Code or the
15evidence-based funding formula under Section 18-8.15 of the
16School Code, until all economic development projects costs have
17been paid as provided for in this Section.
18    (c) When the economic development projects costs,
19including without limitation all municipal obligations
20financing economic development project costs incurred under
21this Act, have been paid, all surplus monies then remaining in
22the special tax allocation fund shall be distributed by being
23paid by the municipal treasurer to the county collector, who
24shall immediately pay the monies to the taxing districts having
25taxable property in the economic development project area in
26the same manner and proportion as the most recent distribution

 

 

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1by the county collector to those taxing districts of real
2property taxes from real property in the economic development
3project area.
4    (d) Upon the payment of all economic development project
5costs, retirement of obligations, and distribution of any
6excess monies under this Section and not later than 23 years
7from the date of the adoption of the ordinance establishing the
8economic development project area, the municipality shall
9adopt an ordinance dissolving the special tax allocation fund
10for the economic development project area and terminating the
11designation of the economic development project area as an
12economic development project area. Thereafter, the rates of the
13taxing districts shall be extended and taxes shall be levied,
14collected, and distributed in the manner applicable in the
15absence of the adoption of tax increment allocation financing.
16    (e) Nothing in this Section shall be construed as relieving
17property in the economic development project areas from being
18assessed as provided in the Property Tax Code or as relieving
19owners or lessees of that property from paying a uniform rate
20of taxes as required by Section 4 of Article IX of the Illinois
21Constitution.
22(Source: P.A. 98-463, eff. 8-16-13.)
 
23    Section 965. The School Code is amended by changing
24Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
251F-20, 1F-62, 1H-20, 1H-70, 2-3.25g, 2-3.33, 2-3.51.5, 2-3.66,

 

 

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12-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19,
210-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,
313B-50, 13B-50.10, 13B-50.15, 14-7.02b, 14-13.01, 14C-1,
414C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
518-8.10, 18-9, 18-12, 26-16, 27-6, 27-7, 27-8.1, 27-24.2,
627A-9, 27A-11, 29-5, 34-2.3, 34-18, 34-18.30, 34-43.1, and
734-53 and by adding Sections 2-3.170, 17-3.6, and 18-8.15 as
8follows:
 
9    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
10    Sec. 1A-8. Powers of the Board in Assisting Districts
11Deemed in Financial Difficulties. To promote the financial
12integrity of school districts, the State Board of Education
13shall be provided the necessary powers to promote sound
14financial management and continue operation of the public
15schools.
16    (a) The State Superintendent of Education may require a
17school district, including any district subject to Article 34A
18of this Code, to share financial information relevant to a
19proper investigation of the district's financial condition and
20the delivery of appropriate State financial, technical, and
21consulting services to the district if the district (i) has
22been designated, through the State Board of Education's School
23District Financial Profile System, as on financial warning or
24financial watch status, (ii) has failed to file an annual
25financial report, annual budget, deficit reduction plan, or

 

 

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1other financial information as required by law, (iii) has been
2identified, through the district's annual audit or other
3financial and management information, as in serious financial
4difficulty in the current or next school year, or (iv) is
5determined to be likely to fail to fully meet any regularly
6scheduled, payroll-period obligations when due or any debt
7service payments when due or both. In addition to financial,
8technical, and consulting services provided by the State Board
9of Education, at the request of a school district, the State
10Superintendent may provide for an independent financial
11consultant to assist the district review its financial
12condition and options.
13    (b) The State Board of Education, after proper
14investigation of a district's financial condition, may certify
15that a district, including any district subject to Article 34A,
16is in financial difficulty when any of the following conditions
17occur:
18        (1) The district has issued school or teacher orders
19    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
20    of this Code.
21        (2) The district has issued tax anticipation warrants
22    or tax anticipation notes in anticipation of a second
23    year's taxes when warrants or notes in anticipation of
24    current year taxes are still outstanding, as authorized by
25    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
26    issued short-term debt against 2 future revenue sources,

 

 

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1    such as, but not limited to, tax anticipation warrants and
2    general State aid or evidence-based funding Aid
3    certificates or tax anticipation warrants and revenue
4    anticipation notes.
5        (3) The district has for 2 consecutive years shown an
6    excess of expenditures and other financing uses over
7    revenues and other financing sources and beginning fund
8    balances on its annual financial report for the aggregate
9    totals of the Educational, Operations and Maintenance,
10    Transportation, and Working Cash Funds.
11        (4) The district refuses to provide financial
12    information or cooperate with the State Superintendent in
13    an investigation of the district's financial condition.
14        (5) The district is likely to fail to fully meet any
15    regularly scheduled, payroll-period obligations when due
16    or any debt service payments when due or both.
17    No school district shall be certified by the State Board of
18Education to be in financial difficulty solely by reason of any
19of the above circumstances arising as a result of (i) the
20failure of the county to make any distribution of property tax
21money due the district at the time such distribution is due or
22(ii) the failure of this State to make timely payments of
23general State aid, evidence-based funding, or any of the
24mandated categoricals; or if the district clearly demonstrates
25to the satisfaction of the State Board of Education at the time
26of its determination that such condition no longer exists. If

 

 

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1the State Board of Education certifies that a district in a
2city with 500,000 inhabitants or more is in financial
3difficulty, the State Board shall so notify the Governor and
4the Mayor of the city in which the district is located. The
5State Board of Education may require school districts certified
6in financial difficulty, except those districts subject to
7Article 34A, to develop, adopt and submit a financial plan
8within 45 days after certification of financial difficulty. The
9financial plan shall be developed according to guidelines
10presented to the district by the State Board of Education
11within 14 days of certification. Such guidelines shall address
12the specific nature of each district's financial difficulties.
13Any proposed budget of the district shall be consistent with
14the financial plan submitted to and approved by the State Board
15of Education.
16    A district certified to be in financial difficulty, other
17than a district subject to Article 34A, shall report to the
18State Board of Education at such times and in such manner as
19the State Board may direct, concerning the district's
20compliance with each financial plan. The State Board may review
21the district's operations, obtain budgetary data and financial
22statements, require the district to produce reports, and have
23access to any other information in the possession of the
24district that it deems relevant. The State Board may issue
25recommendations or directives within its powers to the district
26to assist in compliance with the financial plan. The district

 

 

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1shall produce such budgetary data, financial statements,
2reports and other information and comply with such directives.
3If the State Board of Education determines that a district has
4failed to comply with its financial plan, the State Board of
5Education may rescind approval of the plan and appoint a
6Financial Oversight Panel for the district as provided in
7Section 1B-4. This action shall be taken only after the
8district has been given notice and an opportunity to appear
9before the State Board of Education to discuss its failure to
10comply with its financial plan.
11    No bonds, notes, teachers orders, tax anticipation
12warrants or other evidences of indebtedness shall be issued or
13sold by a school district or be legally binding upon or
14enforceable against a local board of education of a district
15certified to be in financial difficulty unless and until the
16financial plan required under this Section has been approved by
17the State Board of Education.
18    Any financial profile compiled and distributed by the State
19Board of Education in Fiscal Year 2009 or any fiscal year
20thereafter shall incorporate such adjustments as may be needed
21in the profile scores to reflect the financial effects of the
22inability or refusal of the State of Illinois to make timely
23disbursements of any general State aid, evidence-based
24funding, or mandated categorical aid payments due school
25districts or to fully reimburse school districts for mandated
26categorical programs pursuant to reimbursement formulas

 

 

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1provided in this School Code.
2(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
397-429, eff. 8-16-11.)
 
4    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
5    Sec. 1B-5. When a petition for emergency financial
6assistance for a school district is allowed by the State Board
7under Section 1B-4, the State Superintendent shall within 10
8days thereafter appoint 3 members to serve at the State
9Superintendent's pleasure on a Financial Oversight Panel for
10the district. The State Superintendent shall designate one of
11the members of the Panel to serve as its Chairman. In the event
12of vacancy or resignation the State Superintendent shall
13appoint a successor within 10 days of receiving notice thereof.
14    Members of the Panel shall be selected primarily on the
15basis of their experience and education in financial
16management, with consideration given to persons knowledgeable
17in education finance. A member of the Panel may not be a board
18member or employee of the district for which the Panel is
19constituted, nor may a member have a direct financial interest
20in that district.
21    Panel members shall serve without compensation, but may be
22reimbursed for travel and other necessary expenses incurred in
23the performance of their official duties by the State Board.
24The amount reimbursed Panel members for their expenses shall be
25charged to the school district as part of any emergency

 

 

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1financial assistance and incorporated as a part of the terms
2and conditions for repayment of such assistance or shall be
3deducted from the district's general State aid or
4evidence-based funding as provided in Section 1B-8.
5    The first meeting of the Panel shall be held at the call of
6the Chairman. The Panel may elect such other officers as it
7deems appropriate. The Panel shall prescribe the times and
8places for its meetings and the manner in which regular and
9special meetings may be called, and shall comply with the Open
10Meetings Act.
11    Two members of the Panel shall constitute a quorum, and the
12affirmative vote of 2 members shall be necessary for any
13decision or action to be taken by the Panel.
14    The Panel and the State Superintendent shall cooperate with
15each other in the exercise of their respective powers. The
16Panel shall report not later than September 1 annually to the
17State Board and the State Superintendent with respect to its
18activities and the condition of the school district for the
19previous fiscal year.
20    Any Financial Oversight Panel established under this
21Article shall remain in existence for not less than 3 years nor
22more than 10 years from the date the State Board grants the
23petition under Section 1B-4. If after 3 years the school
24district has repaid all of its obligations resulting from
25emergency State financial assistance provided under this
26Article and has improved its financial situation, the board of

 

 

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1education may, not more frequently than once in any 12 month
2period, petition the State Board to dissolve the Financial
3Oversight Panel, terminate the oversight responsibility, and
4remove the district's certification under Section 1A-8 as a
5district in financial difficulty. In acting on such a petition
6the State Board shall give additional weight to the
7recommendations of the State Superintendent and the Financial
8Oversight Panel.
9(Source: P.A. 88-618, eff. 9-9-94.)
 
10    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
11    Sec. 1B-6. General powers. The purpose of the Financial
12Oversight Panel shall be to exercise financial control over the
13board of education, and, when approved by the State Board and
14the State Superintendent of Education, to furnish financial
15assistance so that the board can provide public education
16within the board's jurisdiction while permitting the board to
17meet its obligations to its creditors and the holders of its
18notes and bonds. Except as expressly limited by this Article,
19the Panel shall have all powers necessary to meet its
20responsibilities and to carry out its purposes and the purposes
21of this Article, including, but not limited to, the following
22powers:
23    (a) to sue and be sued;
24    (b) to provide for its organization and internal
25management;

 

 

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1    (c) to appoint a Financial Administrator to serve as the
2chief executive officer of the Panel. The Financial
3Administrator may be an individual, partnership, corporation,
4including an accounting firm, or other entity determined by the
5Panel to be qualified to serve; and to appoint other officers,
6agents, and employees of the Panel, define their duties and
7qualifications and fix their compensation and employee
8benefits;
9    (d) to approve the local board of education appointments to
10the positions of treasurer in a Class I county school unit and
11in each school district which forms a part of a Class II county
12school unit but which no longer is subject to the jurisdiction
13and authority of a township treasurer or trustees of schools of
14a township because the district has withdrawn from the
15jurisdiction and authority of the township treasurer and the
16trustees of schools of the township or because those offices
17have been abolished as provided in subsection (b) or (c) of
18Section 5-1, and chief school business official, if such
19official is not the superintendent of the district. Either the
20board or the Panel may remove such treasurer or chief school
21business official;
22    (e) to approve any and all bonds, notes, teachers orders,
23tax anticipation warrants, and other evidences of indebtedness
24prior to issuance or sale by the school district; and
25notwithstanding any other provision of The School Code, as now
26or hereafter amended, no bonds, notes, teachers orders, tax

 

 

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1anticipation warrants or other evidences of indebtedness shall
2be issued or sold by the school district or be legally binding
3upon or enforceable against the local board of education unless
4and until the approval of the Panel has been received;
5    (f) to approve all property tax levies of the school
6district and require adjustments thereto as the Panel deems
7necessary or advisable;
8    (g) to require and approve a school district financial
9plan;
10    (h) to approve and require revisions of the school district
11budget;
12    (i) to approve all contracts and other obligations as the
13Panel deems necessary and appropriate;
14    (j) to authorize emergency State financial assistance,
15including requirements regarding the terms and conditions of
16repayment of such assistance, and to require the board of
17education to levy a separate local property tax, subject to the
18limitations of Section 1B-8, sufficient to repay such
19assistance consistent with the terms and conditions of
20repayment and the district's approved financial plan and
21budget;
22    (k) to request the regional superintendent to make
23appointments to fill all vacancies on the local school board as
24provided in Section 10-10;
25    (l) to recommend dissolution or reorganization of the
26school district to the General Assembly if in the Panel's

 

 

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1judgment the circumstances so require;
2    (m) to direct a phased reduction in the oversight
3responsibilities of the Financial Administrator and of the
4Panel as the circumstances permit;
5    (n) to determine the amount of emergency State financial
6assistance to be made available to the school district, and to
7establish an operating budget for the Panel to be supported by
8funds available from such assistance, with the assistance and
9the budget required to be approved by the State Superintendent;
10    (o) to procure insurance against any loss in such amounts
11and from such insurers as it deems necessary;
12    (p) to engage the services of consultants for rendering
13professional and technical assistance and advice on matters
14within the Panel's power;
15    (q) to contract for and to accept any gifts, grants or
16loans of funds or property or financial or other aid in any
17form from the federal government, State government, unit of
18local government, school district or any agency or
19instrumentality thereof, or from any other private or public
20source, and to comply with the terms and conditions thereof;
21    (r) to pay the expenses of its operations based on the
22Panel's budget as approved by the State Superintendent from
23emergency financial assistance funds available to the district
24or from deductions from the district's general State aid or
25evidence-based funding;
26    (s) to do any and all things necessary or convenient to

 

 

10000SB1947ham005- 192 -LRB100 09675 JWD 28950 a

1carry out its purposes and exercise the powers given to the
2Panel by this Article; and
3    (t) to recommend the creation of a school finance authority
4pursuant to Article 1F of this Code.
5(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
6    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
7    Sec. 1B-7. Financial Administrator; Powers and Duties. The
8Financial Administrator appointed by the Financial Oversight
9Panel shall serve as the Panel's chief executive officer. The
10Financial Administrator shall exercise the powers and duties
11required by the Panel, including but not limited to the
12following:
13    (a) to provide guidance and recommendations to the local
14board and officials of the school district in developing the
15district's financial plan and budget prior to board action;
16    (b) to direct the local board to reorganize its financial
17accounts, budgetary systems, and internal accounting and
18financial controls, in whatever manner the Panel deems
19appropriate to achieve greater financial responsibility and to
20reduce financial inefficiency, and to provide technical
21assistance to aid the district in accomplishing the
22reorganization;
23    (c) to make recommendations to the Financial Oversight
24Panel concerning the school district's financial plan and
25budget, and all other matters within the scope of the Panel's

 

 

10000SB1947ham005- 193 -LRB100 09675 JWD 28950 a

1authority;
2    (d) to prepare and recommend to the Panel a proposal for
3emergency State financial assistance for the district,
4including recommended terms and conditions of repayment, and an
5operations budget for the Panel to be funded from the emergency
6assistance or from deductions from the district's general State
7aid or evidence-based funding;
8    (e) to require the local board to prepare and submit
9preliminary staffing and budgetary analyses annually prior to
10February 1 in such manner and form as the Financial
11Administrator shall prescribe; and
12    (f) subject to the direction of the Panel, to do all other
13things necessary or convenient to carry out its purposes and
14exercise the powers given to the Panel under this Article.
15(Source: P.A. 88-618, eff. 9-9-94.)
 
16    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
17    Sec. 1B-8. There is created in the State Treasury a special
18fund to be known as the School District Emergency Financial
19Assistance Fund (the "Fund"). The School District Emergency
20Financial Assistance Fund shall consist of appropriations,
21loan repayments, grants from the federal government, and
22donations from any public or private source. Moneys in the Fund
23may be appropriated only to the Illinois Finance Authority and
24the State Board for those purposes authorized under this
25Article and Articles 1F and 1H of this Code. The appropriation

 

 

10000SB1947ham005- 194 -LRB100 09675 JWD 28950 a

1may be allocated and expended by the State Board for
2contractual services to provide technical assistance or
3consultation to school districts to assess their financial
4condition and to Financial Oversight Panels that petition for
5emergency financial assistance grants. The Illinois Finance
6Authority may provide loans to school districts which are the
7subject of an approved petition for emergency financial
8assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
9Neither the State Board of Education nor the Illinois Finance
10Authority may collect any fees for providing these services.
11    From the amount allocated to each such school district
12under this Article the State Board shall identify a sum
13sufficient to cover all approved costs of the Financial
14Oversight Panel established for the respective school
15district. If the State Board and State Superintendent of
16Education have not approved emergency financial assistance in
17conjunction with the appointment of a Financial Oversight
18Panel, the Panel's approved costs shall be paid from deductions
19from the district's general State aid or evidence-based
20funding.
21    The Financial Oversight Panel may prepare and file with the
22State Superintendent a proposal for emergency financial
23assistance for the school district and for its operations
24budget. No expenditures from the Fund shall be authorized by
25the State Superintendent until he or she has approved the
26request of the Panel, either as submitted or in such lesser

 

 

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1amount determined by the State Superintendent.
2    The maximum amount of an emergency financial assistance
3loan which may be allocated to any school district under this
4Article, including moneys necessary for the operations of the
5Panel, shall not exceed $4,000 times the number of pupils
6enrolled in the school district during the school year ending
7June 30 prior to the date of approval by the State Board of the
8petition for emergency financial assistance, as certified to
9the local board and the Panel by the State Superintendent. An
10emergency financial assistance grant shall not exceed $1,000
11times the number of such pupils. A district may receive both a
12loan and a grant.
13    The payment of an emergency State financial assistance
14grant or loan shall be subject to appropriation by the General
15Assembly. Payment of the emergency State financial assistance
16loan is subject to the applicable provisions of the Illinois
17Finance Authority Act. Emergency State financial assistance
18allocated and paid to a school district under this Article may
19be applied to any fund or funds from which the local board of
20education of that district is authorized to make expenditures
21by law.
22    Any emergency financial assistance grant proposed by the
23Financial Oversight Panel and approved by the State
24Superintendent may be paid in its entirety during the initial
25year of the Panel's existence or spread in equal or declining
26amounts over a period of years not to exceed the period of the

 

 

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1Panel's existence. An emergency financial assistance loan
2proposed by the Financial Oversight Panel and approved by the
3Illinois Finance Authority may be paid in its entirety during
4the initial year of the Panel's existence or spread in equal or
5declining amounts over a period of years not to exceed the
6period of the Panel's existence. All loans made by the Illinois
7Finance Authority for a school district shall be required to be
8repaid, with simple interest over the term of the loan at a
9rate equal to 50% of the one-year Constant Maturity Treasury
10(CMT) yield as last published by the Board of Governors of the
11Federal Reserve System before the date on which the district's
12loan is approved by the Illinois Finance Authority, not later
13than the date the Financial Oversight Panel ceases to exist.
14The Panel shall establish and the Illinois Finance Authority
15shall approve the terms and conditions, including the schedule,
16of repayments. The schedule shall provide for repayments
17commencing July 1 of each year or upon each fiscal year's
18receipt of moneys from a tax levy for emergency financial
19assistance. Repayment shall be incorporated into the annual
20budget of the school district and may be made from any fund or
21funds of the district in which there are moneys available. An
22emergency financial assistance loan to the Panel or district
23shall not be considered part of the calculation of a district's
24debt for purposes of the limitation specified in Section 19-1
25of this Code. Default on repayment is subject to the Illinois
26Grant Funds Recovery Act. When moneys are repaid as provided

 

 

10000SB1947ham005- 197 -LRB100 09675 JWD 28950 a

1herein they shall not be made available to the local board for
2further use as emergency financial assistance under this
3Article at any time thereafter. All repayments required to be
4made by a school district shall be received by the State Board
5and deposited in the School District Emergency Financial
6Assistance Fund.
7    In establishing the terms and conditions for the repayment
8obligation of the school district the Panel shall annually
9determine whether a separate local property tax levy is
10required. The board of any school district with a tax rate for
11educational purposes for the prior year of less than 120% of
12the maximum rate for educational purposes authorized by Section
1317-2 shall provide for a separate tax levy for emergency
14financial assistance repayment purposes. Such tax levy shall
15not be subject to referendum approval. The amount of the levy
16shall be equal to the amount necessary to meet the annual
17repayment obligations of the district as established by the
18Panel, or 20% of the amount levied for educational purposes for
19the prior year, whichever is less. However, no district shall
20be required to levy the tax if the district's operating tax
21rate as determined under Section 18-8, or 18-8.05, or 18-8.15
22exceeds 200% of the district's tax rate for educational
23purposes for the prior year.
24(Source: P.A. 97-429, eff. 8-16-11.)
 
25    (105 ILCS 5/1C-1)

 

 

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1    Sec. 1C-1. Purpose. The purpose of this Article is to
2permit greater flexibility and efficiency in the distribution
3and use of certain State funds available to local education
4agencies for the improvement of the quality of educational
5services pursuant to locally established priorities.
6    Through fiscal year 2017, this This Article does not apply
7to school districts having a population in excess of 500,000
8inhabitants.
9(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1089-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
11    (105 ILCS 5/1C-2)
12    Sec. 1C-2. Block grants.
13    (a) For fiscal year 1999, and each fiscal year thereafter,
14the State Board of Education shall award to school districts
15block grants as described in subsection (c). The State Board of
16Education may adopt rules and regulations necessary to
17implement this Section. In accordance with Section 2-3.32, all
18state block grants are subject to an audit. Therefore, block
19grant receipts and block grant expenditures shall be recorded
20to the appropriate fund code.
21    (b) (Blank).
22    (c) An Early Childhood Education Block Grant shall be
23created by combining the following programs: Preschool
24Education, Parental Training and Prevention Initiative. These
25funds shall be distributed to school districts and other

 

 

10000SB1947ham005- 199 -LRB100 09675 JWD 28950 a

1entities on a competitive basis, except that the State Board of
2Education shall award to a school district having a population
3exceeding 500,000 inhabitants 37% of the funds in each fiscal
4year. Not less than 14% of the Early Childhood Education Block
5Grant allocation of funds shall be used to fund programs for
6children ages 0-3. Beginning in Fiscal Year 2016, at least 25%
7of any additional Early Childhood Education Block Grant funding
8over and above the previous fiscal year's allocation shall be
9used to fund programs for children ages 0-3. Once the
10percentage of Early Childhood Education Block Grant funding
11allocated to programs for children ages 0-3 reaches 20% of the
12overall Early Childhood Education Block Grant allocation for a
13full fiscal year, thereafter in subsequent fiscal years the
14percentage of Early Childhood Education Block Grant funding
15allocated to programs for children ages 0-3 each fiscal year
16shall remain at least 20% of the overall Early Childhood
17Education Block Grant allocation. However, if, in a given
18fiscal year, the amount appropriated for the Early Childhood
19Education Block Grant is insufficient to increase the
20percentage of the grant to fund programs for children ages 0-3
21without reducing the amount of the grant for existing providers
22of preschool education programs, then the percentage of the
23grant to fund programs for children ages 0-3 may be held steady
24instead of increased.
25(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)
 

 

 

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1    (105 ILCS 5/1D-1)
2    Sec. 1D-1. Block grant funding.
3    (a) For fiscal year 1996 through fiscal year 2017 and each
4fiscal year thereafter, the State Board of Education shall
5award to a school district having a population exceeding
6500,000 inhabitants a general education block grant and an
7educational services block grant, determined as provided in
8this Section, in lieu of distributing to the district separate
9State funding for the programs described in subsections (b) and
10(c). The provisions of this Section, however, do not apply to
11any federal funds that the district is entitled to receive. In
12accordance with Section 2-3.32, all block grants are subject to
13an audit. Therefore, block grant receipts and block grant
14expenditures shall be recorded to the appropriate fund code for
15the designated block grant.
16    (b) The general education block grant shall include the
17following programs: REI Initiative, Summer Bridges, Preschool
18At Risk, K-6 Comprehensive Arts, School Improvement Support,
19Urban Education, Scientific Literacy, Substance Abuse
20Prevention, Second Language Planning, Staff Development,
21Outcomes and Assessment, K-6 Reading Improvement, 7-12
22Continued Reading Improvement, Truants' Optional Education,
23Hispanic Programs, Agriculture Education, Parental Education,
24Prevention Initiative, Report Cards, and Criminal Background
25Investigations. Notwithstanding any other provision of law,
26all amounts paid under the general education block grant from

 

 

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1State appropriations to a school district in a city having a
2population exceeding 500,000 inhabitants shall be appropriated
3and expended by the board of that district for any of the
4programs included in the block grant or any of the board's
5lawful purposes.
6    (c) The educational services block grant shall include the
7following programs: Regular and Vocational Transportation,
8State Lunch and Free Breakfast Program, Special Education
9(Personnel, Transportation, Orphanage, Private Tuition),
10funding for children requiring special education services,
11Summer School, Educational Service Centers, and
12Administrator's Academy. This subsection (c) does not relieve
13the district of its obligation to provide the services required
14under a program that is included within the educational
15services block grant. It is the intention of the General
16Assembly in enacting the provisions of this subsection (c) to
17relieve the district of the administrative burdens that impede
18efficiency and accompany single-program funding. The General
19Assembly encourages the board to pursue mandate waivers
20pursuant to Section 2-3.25g.
21    The funding program included in the educational services
22block grant for funding for children requiring special
23education services in each fiscal year shall be treated in that
24fiscal year as a payment to the school district in respect of
25services provided or costs incurred in the prior fiscal year,
26calculated in each case as provided in this Section. Nothing in

 

 

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1this Section shall change the nature of payments for any
2program that, apart from this Section, would be or, prior to
3adoption or amendment of this Section, was on the basis of a
4payment in a fiscal year in respect of services provided or
5costs incurred in the prior fiscal year, calculated in each
6case as provided in this Section.
7    (d) For fiscal year 1996 through fiscal year 2017 and each
8fiscal year thereafter, the amount of the district's block
9grants shall be determined as follows: (i) with respect to each
10program that is included within each block grant, the district
11shall receive an amount equal to the same percentage of the
12current fiscal year appropriation made for that program as the
13percentage of the appropriation received by the district from
14the 1995 fiscal year appropriation made for that program, and
15(ii) the total amount that is due the district under the block
16grant shall be the aggregate of the amounts that the district
17is entitled to receive for the fiscal year with respect to each
18program that is included within the block grant that the State
19Board of Education shall award the district under this Section
20for that fiscal year. In the case of the Summer Bridges
21program, the amount of the district's block grant shall be
22equal to 44% of the amount of the current fiscal year
23appropriation made for that program.
24    (e) The district is not required to file any application or
25other claim in order to receive the block grants to which it is
26entitled under this Section. The State Board of Education shall

 

 

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1make payments to the district of amounts due under the
2district's block grants on a schedule determined by the State
3Board of Education.
4    (f) A school district to which this Section applies shall
5report to the State Board of Education on its use of the block
6grants in such form and detail as the State Board of Education
7may specify. In addition, the report must include the following
8description for the district, which must also be reported to
9the General Assembly: block grant allocation and expenditures
10by program; population and service levels by program; and
11administrative expenditures by program. The State Board of
12Education shall ensure that the reporting requirements for the
13district are the same as for all other school districts in this
14State.
15    (g) Through fiscal year 2017, this This paragraph provides
16for the treatment of block grants under Article 1C for purposes
17of calculating the amount of block grants for a district under
18this Section. Those block grants under Article 1C are, for this
19purpose, treated as included in the amount of appropriation for
20the various programs set forth in paragraph (b) above. The
21appropriation in each current fiscal year for each block grant
22under Article 1C shall be treated for these purposes as
23appropriations for the individual program included in that
24block grant. The proportion of each block grant so allocated to
25each such program included in it shall be the proportion which
26the appropriation for that program was of all appropriations

 

 

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1for such purposes now in that block grant, in fiscal 1995.
2    Payments to the school district under this Section with
3respect to each program for which payments to school districts
4generally, as of the date of this amendatory Act of the 92nd
5General Assembly, are on a reimbursement basis shall continue
6to be made to the district on a reimbursement basis, pursuant
7to the provisions of this Code governing those programs.
8    (h) Notwithstanding any other provision of law, any school
9district receiving a block grant under this Section may
10classify all or a portion of the funds that it receives in a
11particular fiscal year from any block grant authorized under
12this Code or from general State aid pursuant to Section 18-8.05
13of this Code (other than supplemental general State aid) as
14funds received in connection with any funding program for which
15it is entitled to receive funds from the State in that fiscal
16year (including, without limitation, any funding program
17referred to in subsection (c) of this Section), regardless of
18the source or timing of the receipt. The district may not
19classify more funds as funds received in connection with the
20funding program than the district is entitled to receive in
21that fiscal year for that program. Any classification by a
22district must be made by a resolution of its board of
23education. The resolution must identify the amount of any block
24grant or general State aid to be classified under this
25subsection (h) and must specify the funding program to which
26the funds are to be treated as received in connection

 

 

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1therewith. This resolution is controlling as to the
2classification of funds referenced therein. A certified copy of
3the resolution must be sent to the State Superintendent of
4Education. The resolution shall still take effect even though a
5copy of the resolution has not been sent to the State
6Superintendent of Education in a timely manner. No
7classification under this subsection (h) by a district shall
8affect the total amount or timing of money the district is
9entitled to receive under this Code. No classification under
10this subsection (h) by a district shall in any way relieve the
11district from or affect any requirements that otherwise would
12apply with respect to the block grant as provided in this
13Section, including any accounting of funds by source, reporting
14expenditures by original source and purpose, reporting
15requirements, or requirements of provision of services.
16(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1797-813, eff. 7-13-12.)
 
18    (105 ILCS 5/1E-20)
19    (This Section scheduled to be repealed in accordance with
20105 ILCS 5/1E-165)
21    Sec. 1E-20. Members of Authority; meetings.
22    (a) When a petition for a School Finance Authority is
23allowed by the State Board under Section 1E-15 of this Code,
24the State Superintendent shall within 10 days thereafter
25appoint 5 members to serve on a School Finance Authority for

 

 

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1the district. Of the initial members, 2 shall be appointed to
2serve a term of 2 years and 3 shall be appointed to serve a term
3of 3 years. Thereafter, each member shall serve for a term of 3
4years and until his or her successor has been appointed. The
5State Superintendent shall designate one of the members of the
6Authority to serve as its Chairperson. In the event of vacancy
7or resignation, the State Superintendent shall, within 10 days
8after receiving notice, appoint a successor to serve out that
9member's term. The State Superintendent may remove a member for
10incompetence, malfeasance, neglect of duty, or other just
11cause.
12    Members of the Authority shall be selected primarily on the
13basis of their experience and education in financial
14management, with consideration given to persons knowledgeable
15in education finance. Two members of the Authority shall be
16residents of the school district that the Authority serves. A
17member of the Authority may not be a member of the district's
18school board or an employee of the district nor may a member
19have a direct financial interest in the district.
20    Authority members shall serve without compensation, but
21may be reimbursed by the State Board for travel and other
22necessary expenses incurred in the performance of their
23official duties. Unless paid from bonds issued under Section
241E-65 of this Code, the amount reimbursed members for their
25expenses shall be charged to the school district as part of any
26emergency financial assistance and incorporated as a part of

 

 

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1the terms and conditions for repayment of the assistance or
2shall be deducted from the district's general State aid or
3evidence-based funding as provided in Section 1B-8 of this
4Code.
5    The Authority may elect such officers as it deems
6appropriate.
7    (b) The first meeting of the Authority shall be held at the
8call of the Chairperson. The Authority shall prescribe the
9times and places for its meetings and the manner in which
10regular and special meetings may be called and shall comply
11with the Open Meetings Act.
12    Three members of the Authority shall constitute a quorum.
13When a vote is taken upon any measure before the Authority, a
14quorum being present, a majority of the votes of the members
15voting on the measure shall determine the outcome.
16(Source: P.A. 92-547, eff. 6-13-02.)
 
17    (105 ILCS 5/1F-20)
18(This Section scheduled to be repealed in accordance with 105
19ILCS 5/1F-165)
20    Sec. 1F-20. Members of Authority; meetings.
21    (a) Upon establishment of a School Finance Authority under
22Section 1F-15 of this Code, the State Superintendent shall
23within 15 days thereafter appoint 5 members to serve on a
24School Finance Authority for the district. Of the initial
25members, 2 shall be appointed to serve a term of 2 years and 3

 

 

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1shall be appointed to serve a term of 3 years. Thereafter, each
2member shall serve for a term of 3 years and until his or her
3successor has been appointed. The State Superintendent shall
4designate one of the members of the Authority to serve as its
5Chairperson. In the event of vacancy or resignation, the State
6Superintendent shall, within 10 days after receiving notice,
7appoint a successor to serve out that member's term. The State
8Superintendent may remove a member for incompetence,
9malfeasance, neglect of duty, or other just cause.
10    Members of the Authority shall be selected primarily on the
11basis of their experience and education in financial
12management, with consideration given to persons knowledgeable
13in education finance. Two members of the Authority shall be
14residents of the school district that the Authority serves. A
15member of the Authority may not be a member of the district's
16school board or an employee of the district nor may a member
17have a direct financial interest in the district.
18    Authority members shall be paid a stipend approved by the
19State Superintendent of not more than $100 per meeting and may
20be reimbursed by the State Board for travel and other necessary
21expenses incurred in the performance of their official duties.
22Unless paid from bonds issued under Section 1F-65 of this Code,
23the amount reimbursed members for their expenses shall be
24charged to the school district as part of any emergency
25financial assistance and incorporated as a part of the terms
26and conditions for repayment of the assistance or shall be

 

 

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1deducted from the district's general State aid or
2evidence-based funding as provided in Section 1B-8 of this
3Code.
4    The Authority may elect such officers as it deems
5appropriate.
6    (b) The first meeting of the Authority shall be held at the
7call of the Chairperson. The Authority shall prescribe the
8times and places for its meetings and the manner in which
9regular and special meetings may be called and shall comply
10with the Open Meetings Act.
11    Three members of the Authority shall constitute a quorum.
12When a vote is taken upon any measure before the Authority, a
13quorum being present, a majority of the votes of the members
14voting on the measure shall determine the outcome.
15(Source: P.A. 94-234, eff. 7-1-06.)
 
16    (105 ILCS 5/1F-62)
17(This Section scheduled to be repealed in accordance with 105
18ILCS 5/1F-165)
19    Sec. 1F-62. School District Emergency Financial Assistance
20Fund; grants and loans.
21    (a) Moneys in the School District Emergency Financial
22Assistance Fund established under Section 1B-8 of this Code may
23be allocated and expended by the State Board as grants to
24provide technical and consulting services to school districts
25to assess their financial condition and by the Illinois Finance

 

 

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1Authority for emergency financial assistance loans to a School
2Finance Authority that petitions for emergency financial
3assistance. An emergency financial assistance loan to a School
4Finance Authority or borrowing from sources other than the
5State shall not be considered as part of the calculation of a
6district's debt for purposes of the limitation specified in
7Section 19-1 of this Code. From the amount allocated to each
8School Finance Authority, the State Board shall identify a sum
9sufficient to cover all approved costs of the School Finance
10Authority. If the State Board and State Superintendent have not
11approved emergency financial assistance in conjunction with
12the appointment of a School Finance Authority, the Authority's
13approved costs shall be paid from deductions from the
14district's general State aid or evidence-based funding.
15    The School Finance Authority may prepare and file with the
16State Superintendent a proposal for emergency financial
17assistance for the school district and for its operations
18budget. No expenditures shall be authorized by the State
19Superintendent until he or she has approved the proposal of the
20School Finance Authority, either as submitted or in such lesser
21amount determined by the State Superintendent.
22    (b) The amount of an emergency financial assistance loan
23that may be allocated to a School Finance Authority under this
24Article, including moneys necessary for the operations of the
25School Finance Authority, and borrowing from sources other than
26the State shall not exceed, in the aggregate, $4,000 times the

 

 

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1number of pupils enrolled in the district during the school
2year ending June 30 prior to the date of approval by the State
3Board of the petition for emergency financial assistance, as
4certified to the school board and the School Finance Authority
5by the State Superintendent. However, this limitation does not
6apply to borrowing by the district secured by amounts levied by
7the district prior to establishment of the School Finance
8Authority. An emergency financial assistance grant shall not
9exceed $1,000 times the number of such pupils. A district may
10receive both a loan and a grant.
11    (c) The payment of a State emergency financial assistance
12grant or loan shall be subject to appropriation by the General
13Assembly. State emergency financial assistance allocated and
14paid to a School Finance Authority under this Article may be
15applied to any fund or funds from which the School Finance
16Authority is authorized to make expenditures by law.
17    (d) Any State emergency financial assistance proposed by
18the School Finance Authority and approved by the State
19Superintendent may be paid in its entirety during the initial
20year of the School Finance Authority's existence or spread in
21equal or declining amounts over a period of years not to exceed
22the period of the School Finance Authority's existence. The
23State Superintendent shall not approve any loan to the School
24Finance Authority unless the School Finance Authority has been
25unable to borrow sufficient funds to operate the district.
26    All loan payments made from the School District Emergency

 

 

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1Financial Assistance Fund to a School Finance Authority shall
2be required to be repaid not later than the date the School
3Finance Authority ceases to exist, with simple interest over
4the term of the loan at a rate equal to 50% of the one-year
5Constant Maturity Treasury (CMT) yield as last published by the
6Board of Governors of the Federal Reserve System before the
7date on which the School Finance Authority's loan is approved
8by the State Board.
9    The School Finance Authority shall establish and the
10Illinois Finance Authority shall approve the terms and
11conditions of the loan, including the schedule of repayments.
12The schedule shall provide for repayments commencing July 1 of
13each year or upon each fiscal year's receipt of moneys from a
14tax levy for emergency financial assistance. Repayment shall be
15incorporated into the annual budget of the district and may be
16made from any fund or funds of the district in which there are
17moneys available. Default on repayment is subject to the
18Illinois Grant Funds Recovery Act. When moneys are repaid as
19provided in this Section, they shall not be made available to
20the School Finance Authority for further use as emergency
21financial assistance under this Article at any time thereafter.
22All repayments required to be made by a School Finance
23Authority shall be received by the State Board and deposited in
24the School District Emergency Financial Assistance Fund.
25    In establishing the terms and conditions for the repayment
26obligation of the School Finance Authority, the School Finance

 

 

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1Authority shall annually determine whether a separate local
2property tax levy is required to meet that obligation. The
3School Finance Authority shall provide for a separate tax levy
4for emergency financial assistance repayment purposes. This
5tax levy shall not be subject to referendum approval. The
6amount of the levy shall not exceed the amount necessary to
7meet the annual emergency financial repayment obligations of
8the district, including principal and interest, as established
9by the School Finance Authority.
10(Source: P.A. 94-234, eff. 7-1-06.)
 
11    (105 ILCS 5/1H-20)
12    Sec. 1H-20. Members of Panel; meetings.
13    (a) Upon establishment of a Financial Oversight Panel under
14Section 1H-15 of this Code, the State Superintendent shall
15within 15 working days thereafter appoint 5 members to serve on
16a Financial Oversight Panel for the district. Members appointed
17to the Panel shall serve at the pleasure of the State
18Superintendent. The State Superintendent shall designate one
19of the members of the Panel to serve as its Chairperson. In the
20event of vacancy or resignation, the State Superintendent
21shall, within 10 days after receiving notice, appoint a
22successor to serve out that member's term.
23    (b) Members of the Panel shall be selected primarily on the
24basis of their experience and education in financial
25management, with consideration given to persons knowledgeable

 

 

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1in education finance. Two members of the Panel shall be
2residents of the school district that the Panel serves. A
3member of the Panel may not be a member of the district's
4school board or an employee of the district nor may a member
5have a direct financial interest in the district.
6    (c) Panel members may be reimbursed by the State Board for
7travel and other necessary expenses incurred in the performance
8of their official duties. The amount reimbursed members for
9their expenses shall be charged to the school district as part
10of any emergency financial assistance and incorporated as a
11part of the terms and conditions for repayment of the
12assistance or shall be deducted from the district's general
13State aid or evidence-based funding as provided in Section
141H-65 of this Code.
15    (d) With the exception of the chairperson, who shall be
16designated as provided in subsection (a) of this Section, the
17Panel may elect such officers as it deems appropriate.
18    (e) The first meeting of the Panel shall be held at the
19call of the Chairperson. The Panel shall prescribe the times
20and places for its meetings and the manner in which regular and
21special meetings may be called and shall comply with the Open
22Meetings Act. The Panel shall also comply with the Freedom of
23Information Act.
24    (f) Three members of the Panel shall constitute a quorum. A
25majority of members present is required to pass a measure.
26(Source: P.A. 97-429, eff. 8-16-11.)
 

 

 

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1    (105 ILCS 5/1H-70)