101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2739

 

Introduced , by Rep. Thomas Morrison

 

SYNOPSIS AS INTRODUCED:
 
New Act
105 ILCS 5/19-32 new

    Creates the School District Debt Control and Taxpayer Protection Act, and amends the School Code. Provides that a school district may not refinance debt past the repayment period of the debt when issued, may not issue debt to be serviced over a period of greater than 20 years, and may not issue capital appreciation bonds. Provides that school districts may not be indebted in an amount greater than that indicated in the Act and if a school district does exceed the debt limitation, then the school district may not incur any new debt until the school district's debt is lower than the debt limitation. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the School
5District Debt Control and Taxpayer Protection Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Capital appreciation bond" means debt issued without
8annual or semiannual payments of principal, interest, or both.
9    "Entire debt service" means principal, interest, and
10issuance costs of all debt and bonds.
11    "Equalized assessed value" means the assessed value as
12equalized by the Illinois Department of Revenue.
13    "Tax anticipation warrants" means tax anticipation
14warrants drawn and issued under the School Code.
 
15    Section 10. Refinancing debt. Notwithstanding any other
16law to the contrary, a school district may not refinance debt
17past the repayment period of the debt when issued.
 
18    Section 15. Debt serviced more than 20 years.
19Notwithstanding any law to the contrary, a school district may
20not issue debt to be serviced over a period greater than 20
21years.
 

 

 

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1    Section 20. Equalized assessed value. Notwithstanding any
2other law to the contrary, for the purpose of calculating the
3debt limit of a school district in relation to its equalized
4assessed value, debt shall include alternate revenue bonds,
5privately placed debt, and all interest on all debt.
 
6    Section 25. Debt limitation. Notwithstanding any other law
7to the contrary, no school district may become indebted in any
8manner or for any purpose in an amount, including the entire
9debt service, in the aggregate exceeding 13.8% of the value of
10the taxable property therein to be ascertained by the last
11assessment for State and county taxes or, if greater, the sum
12that is produced by multiplying the school district's 2018
13equalized assessed value by the debt limitation percentage in
14effect on January 1, 2019, previous to the incurring of such
15indebtedness.
 
16    Section 30. New debt prohibited.
17    (a) Notwithstanding any other law to the contrary and on
18and after the effective date of this Act, a school district
19that exceeds the debt limitation of Section 25 of this Act may
20not incur any new debt, including, but not limited to, tax
21anticipation warrants, until the school district's aggregate
22debt limitation is below the debt limitation of Section 25.
23    (b) Notwithstanding subsection (a), a school district may

 

 

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1issue new debt on or after effective date of this Act if a
2referendum allowing new debt to be issued was passed before the
3effective date of this Act.
 
4    Section 35. Capital appreciation bonds. Notwithstanding
5any other law to the contrary and on and after the effective
6date of this Act, no school district may issue capital
7appreciation bonds.
 
8    Section 40. Additional debt. Nothing in this Act shall
9authorize any school district to issue additional debt above
10and beyond what is otherwise authorized by law.
 
11    Section 45. The School Code is amended by adding Section
1219-32 as follows:
 
13    (105 ILCS 5/19-32 new)
14    Sec. 19-32. School District Debt Control and Taxpayer
15Protection Act. In any instance in which this Code conflicts
16with the School District Debt Control and Taxpayer Protection
17Act, that Act shall control.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.