SB2149 EngrossedLRB097 10095 NHT 50275 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Sections 18-15, 18-50.1, 18-92, and 18-241 as follows:
 
6    (35 ILCS 200/18-15)
7    Sec. 18-15. Filing of levies of taxing districts.
8    (a) Notwithstanding any other law to the contrary, all
9taxing districts, other than a school district subject to the
10authority of a Financial Oversight Panel pursuant to Article 1H
11of the School Code, shall annually certify to the county clerk,
12on or before the last Tuesday in December, the several amounts
13that they have levied.
14    (b) A school district subject to the authority of a
15Financial Oversight Panel pursuant to Article 1H of the School
16Code shall file a certificate of tax levy, necessary to effect
17the implementation of the approved financial plan and the
18approval of the Panel, as otherwise provided by this Section,
19except that the certificate must be certified to the county
20clerk on or before the first Tuesday in November.
21    (c) If a school district as specified in subsection (b) of
22this Section fails to certify and return the certificate of tax
23levy, necessary to effect the implementation of the approved

 

 

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1financial plan and the approval of the Financial Oversight
2Panel, to the county clerk on or before the first Tuesday in
3November, then the Financial Oversight Panel for the school
4district shall proceed to adopt, certify, and return a
5certificate of tax levy for the school district to the county
6clerk on or before the last Tuesday in December.
7(Source: P.A. 87-17; 87-738; 87-895; 88-455.)
 
8    (35 ILCS 200/18-50.1)
9    Sec. 18-50.1. School Finance Authority and Financial
10Oversight Panel levies.
11    (a) Notwithstanding any other law to the contrary, any levy
12adopted by a School Finance Authority created under Article 1F
13of the School Code is valid and shall be extended by the county
14clerk if it is certified to the county clerk by the Authority
15in sufficient time to allow the county clerk to include the
16levy in the extension for the taxable year.
17    (b) Notwithstanding any other law to the contrary, any levy
18adopted by a Financial Oversight Panel created under Article 1H
19of the School Code and levied pursuant to Section 1H-75 of the
20School Code is valid and shall be extended by the county clerk
21if it is certified to the county clerk by the Panel in
22sufficient time to allow the county clerk to include the levy
23in the extension for the taxable year.
24(Source: P.A. 92-855, eff. 12-6-02.)
 

 

 

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1    (35 ILCS 200/18-92)
2    Sec. 18-92. Downstate School Finance Authority for
3Elementary Districts Law and Financial Oversight Panel Law.
4    (a) The provisions of the Truth in Taxation Law are subject
5to the Downstate School Finance Authority for Elementary
6Districts Law.
7    (b) A Financial Oversight Panel created under Article 1H of
8the School Code is subject to the provisions of the Truth in
9Taxation Law with respect to tax levies filed by it on behalf
10of a school district, as well as with respect to any tax levies
11it may file on its own behalf.
12(Source: P.A. 95-331, eff. 8-21-07.)
 
13    (35 ILCS 200/18-241)
14    Sec. 18-241. School Finance Authority and Financial
15Oversight Panel.
16    (a) A School Finance Authority established under Article 1E
17or 1F of the School Code shall not be a taxing district for
18purposes of this Law. A Financial Oversight Panel established
19under Article 1H of the School Code shall not be a taxing
20district for purposes of this Law.
21    (b) This Law shall not apply to the extension of taxes for
22a school district for the levy year in which a School Finance
23Authority for the district is created pursuant to Article 1E or
241F of the School Code. This Law shall not apply to the
25extension of taxes for the purpose of repaying an emergency

 

 

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1financial assistance loan levied pursuant to Section 1H-65 of
2the School Code.
3(Source: P.A. 92-547, eff. 6-13-02; 93-501, eff. 8-11-03.)
 
4    Section 10. The Illinois Pension Code is amended by
5changing Sections 7-105, 7-109, and 7-132 as follows:
 
6    (40 ILCS 5/7-105)  (from Ch. 108 1/2, par. 7-105)
7    Sec. 7-105. "Municipality": A city, village, incorporated
8town, county, township; a Financial Oversight Panel
9established pursuant to Article 1H of the School Code; and any
10school, park, sanitary, road forest preserve, water, fire
11protection, public health, river conservancy, mosquito
12abatement, tuberculosis sanitarium, public community college
13district, or other local district with general continuous power
14to levy taxes on the property within such district; now
15existing or hereafter created within the State; and, for the
16purposes of providing annuities and benefits to its employees,
17the fund itself.
18(Source: P.A. 84-1308.)
 
19    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
20    Sec. 7-109. Employee.
21    (1) "Employee" means any person who:
22        (a) 1. Receives earnings as payment for the performance
23        of personal services or official duties out of the

 

 

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1        general fund of a municipality, or out of any special
2        fund or funds controlled by a municipality, or by an
3        instrumentality thereof, or a participating
4        instrumentality, including, in counties, the fees or
5        earnings of any county fee office; and
6            2. Under the usual common law rules applicable in
7        determining the employer-employee relationship, has
8        the status of an employee with a municipality, or any
9        instrumentality thereof, or a participating
10        instrumentality, including aldermen, county
11        supervisors and other persons (excepting those
12        employed as independent contractors) who are paid
13        compensation, fees, allowances or other emolument for
14        official duties, and, in counties, the several county
15        fee offices.
16        (b) Serves as a township treasurer appointed under the
17    School Code, as heretofore or hereafter amended, and who
18    receives for such services regular compensation as
19    distinguished from per diem compensation, and any regular
20    employee in the office of any township treasurer whether or
21    not his earnings are paid from the income of the permanent
22    township fund or from funds subject to distribution to the
23    several school districts and parts of school districts as
24    provided in the School Code, or from both such sources; or
25    is the chief executive officer, chief educational officer,
26    chief fiscal officer, or other employee of a Financial

 

 

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1    Oversight Panel established pursuant to Article 1H of the
2    School Code, other than a superintendent or certified
3    school business official, except that such person shall not
4    be treated as an employee under this Section if that person
5    has negotiated with the Financial Oversight Panel, in
6    conjunction with the school district, a contractual
7    agreement for exclusion from this Section.
8        (c) Holds an elective office in a municipality,
9    instrumentality thereof or participating instrumentality.
10    (2) "Employee" does not include persons who:
11        (a) Are eligible for inclusion under any of the
12    following laws:
13            1. "An Act in relation to an Illinois State
14        Teachers' Pension and Retirement Fund", approved May
15        27, 1915, as amended;
16            2. Articles 15 and 16 of this Code.
17        However, such persons shall be included as employees to
18    the extent of earnings that are not eligible for inclusion
19    under the foregoing laws for services not of an
20    instructional nature of any kind.
21        However, any member of the armed forces who is employed
22    as a teacher of subjects in the Reserve Officers Training
23    Corps of any school and who is not certified under the law
24    governing the certification of teachers shall be included
25    as an employee.
26        (b) Are designated by the governing body of a

 

 

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1    municipality in which a pension fund is required by law to
2    be established for policemen or firemen, respectively, as
3    performing police or fire protection duties, except that
4    when such persons are the heads of the police or fire
5    department and are not eligible to be included within any
6    such pension fund, they shall be included within this
7    Article; provided, that such persons shall not be excluded
8    to the extent of concurrent service and earnings not
9    designated as being for police or fire protection duties.
10    However, (i) any head of a police department who was a
11    participant under this Article immediately before October
12    1, 1977 and did not elect, under Section 3-109 of this Act,
13    to participate in a police pension fund shall be an
14    "employee", and (ii) any chief of police who elects to
15    participate in this Fund under Section 3-109.1 of this
16    Code, regardless of whether such person continues to be
17    employed as chief of police or is employed in some other
18    rank or capacity within the police department, shall be an
19    employee under this Article for so long as such person is
20    employed to perform police duties by a participating
21    municipality and has not lawfully rescinded that election.
22    (3) All persons, including, without limitation, public
23defenders and probation officers, who receive earnings from
24general or special funds of a county for performance of
25personal services or official duties within the territorial
26limits of the county, are employees of the county (unless

 

 

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1excluded by subsection (2) of this Section) notwithstanding
2that they may be appointed by and are subject to the direction
3of a person or persons other than a county board or a county
4officer. It is hereby established that an employer-employee
5relationship under the usual common law rules exists between
6such employees and the county paying their salaries by reason
7of the fact that the county boards fix their rates of
8compensation, appropriate funds for payment of their earnings
9and otherwise exercise control over them. This finding and this
10amendatory Act shall apply to all such employees from the date
11of appointment whether such date is prior to or after the
12effective date of this amendatory Act and is intended to
13clarify existing law pertaining to their status as
14participating employees in the Fund.
15(Source: P.A. 90-460, eff. 8-17-97.)
 
16    (40 ILCS 5/7-132)   (from Ch. 108 1/2, par. 7-132)
17    Sec. 7-132. Municipalities, instrumentalities and
18participating instrumentalities included and effective dates.
 
19(A) Municipalities and their instrumentalities.
20    (a) The following described municipalities, but not
21including any with more than 1,000,000 inhabitants, and the
22instrumentalities thereof, shall be included within and be
23subject to this Article beginning upon the effective dates
24specified by the Board:

 

 

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1        (1) Except as to the municipalities and
2    instrumentalities thereof specifically excluded under this
3    Article, every county shall be subject to this Article, and
4    all cities, villages and incorporated towns having a
5    population in excess of 5,000 inhabitants as determined by
6    the last preceding decennial or subsequent federal census,
7    shall be subject to this Article following publication of
8    the census by the Bureau of the Census. Within 90 days
9    after publication of the census, the Board shall notify any
10    municipality that has become subject to this Article as a
11    result of that census, and shall provide information to the
12    corporate authorities of the municipality explaining the
13    duties and consequences of participation. The notification
14    shall also include a proposed date upon which participation
15    by the municipality will commence.
16        However, for any city, village or incorporated town
17    that attains a population over 5,000 inhabitants after
18    having provided social security coverage for its employees
19    under the Social Security Enabling Act, participation
20    under this Article shall not be mandatory but may be
21    elected in accordance with subparagraph (3) or (4) of this
22    paragraph (a), whichever is applicable.
23        (2) School districts, other than those specifically
24    excluded under this Article, shall be subject to this
25    Article, without election, with respect to all employees
26    thereof.

 

 

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1        (3) Towns and all other bodies politic and corporate
2    which are formed by vote of, or are subject to control by,
3    the electors in towns and are located in towns which are
4    not participating municipalities on the effective date of
5    this Act, may become subject to this Article by election
6    pursuant to Section 7-132.1.
7        (4) Any other municipality (together with its
8    instrumentalities), other than those specifically excluded
9    from participation and those described in paragraph (3)
10    above, may elect to be included either by referendum under
11    Section 7-134 or by the adoption of a resolution or
12    ordinance by its governing body. A copy of such resolution
13    or ordinance duly authenticated and certified by the clerk
14    of the municipality or other appropriate official of its
15    governing body shall constitute the required notice to the
16    board of such action.
17    (b) A municipality that is about to begin participation
18shall submit to the Board an application to participate, in a
19form acceptable to the Board, not later than 90 days prior to
20the proposed effective date of participation. The Board shall
21act upon the application within 90 days, and if it finds that
22the application is in conformity with its requirements and the
23requirements of this Article, participation by the applicant
24shall commence on a date acceptable to the municipality and
25specified by the Board, but in no event more than one year from
26the date of application.

 

 

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1    (c) A participating municipality which succeeds to the
2functions of a participating municipality which is dissolved or
3terminates its existence shall assume and be transferred the
4net accumulation balance in the municipality reserve and the
5municipality account receivable balance of the terminated
6municipality.
7    (d) In the case of a Veterans Assistance Commission whose
8employees were being treated by the Fund on January 1, 1990 as
9employees of the county served by the Commission, the Fund may
10continue to treat the employees of the Veterans Assistance
11Commission as county employees for the purposes of this
12Article, unless the Commission becomes a participating
13instrumentality in accordance with subsection (B) of this
14Section.
 
15(B) Participating instrumentalities.
16    (a) The participating instrumentalities designated in
17paragraph (b) of this subsection shall be included within and
18be subject to this Article if:
19        (1) an application to participate, in a form acceptable
20    to the Board and adopted by a two-thirds vote of the
21    governing body, is presented to the Board not later than 90
22    days prior to the proposed effective date; and
23        (2) the Board finds that the application is in
24    conformity with its requirements, that the applicant has
25    reasonable expectation to continue as a political entity

 

 

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1    for a period of at least 10 years and has the prospective
2    financial capacity to meet its current and future
3    obligations to the Fund, and that the actuarial soundness
4    of the Fund may be reasonably expected to be unimpaired by
5    approval of participation by the applicant.
6    The Board shall notify the applicant of its findings within
790 days after receiving the application, and if the Board
8approves the application, participation by the applicant shall
9commence on the effective date specified by the Board.
10    (b) The following participating instrumentalities, so long
11as they meet the requirements of Section 7-108 and the area
12served by them or within their jurisdiction is not located
13entirely within a municipality having more than one million
14inhabitants, may be included hereunder:
15        i. Township School District Trustees.
16        ii. Multiple County and Consolidated Health
17    Departments created under Division 5-25 of the Counties
18    Code or its predecessor law.
19        iii. Public Building Commissions created under the
20    Public Building Commission Act, and located in counties of
21    less than 1,000,000 inhabitants.
22        iv. A multitype, consolidated or cooperative library
23    system created under the Illinois Library System Act. Any
24    library system created under the Illinois Library System
25    Act that has one or more predecessors that participated in
26    the Fund may participate in the Fund upon application. The

 

 

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1    Board shall establish procedures for implementing the
2    transfer of rights and obligations from the predecessor
3    system to the successor system.
4        v. Regional Planning Commissions created under
5    Division 5-14 of the Counties Code or its predecessor law.
6        vi. Local Public Housing Authorities created under the
7    Housing Authorities Act, located in counties of less than
8    1,000,000 inhabitants.
9        vii. Illinois Municipal League.
10        viii. Northeastern Illinois Metropolitan Area Planning
11    Commission.
12        ix. Southwestern Illinois Metropolitan Area Planning
13    Commission.
14        x. Illinois Association of Park Districts.
15        xi. Illinois Supervisors, County Commissioners and
16    Superintendents of Highways Association.
17        xii. Tri-City Regional Port District.
18        xiii. An association, or not-for-profit corporation,
19    membership in which is authorized under Section 85-15 of
20    the Township Code.
21        xiv. Drainage Districts operating under the Illinois
22    Drainage Code.
23        xv. Local mass transit districts created under the
24    Local Mass Transit District Act.
25        xvi. Soil and water conservation districts created
26    under the Soil and Water Conservation Districts Law.

 

 

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1        xvii. Commissions created to provide water supply or
2    sewer services or both under Division 135 or Division 136
3    of Article 11 of the Illinois Municipal Code.
4        xviii. Public water districts created under the Public
5    Water District Act.
6        xix. Veterans Assistance Commissions established under
7    Section 9 of the Military Veterans Assistance Act that
8    serve counties with a population of less than 1,000,000.
9        xx. The governing body of an entity, other than a
10    vocational education cooperative, created under an
11    intergovernmental cooperative agreement established
12    between participating municipalities under the
13    Intergovernmental Cooperation Act, which by the terms of
14    the agreement is the employer of the persons performing
15    services under the agreement under the usual common law
16    rules determining the employer-employee relationship. The
17    governing body of such an intergovernmental cooperative
18    entity established prior to July 1, 1988 may make
19    participation retroactive to the effective date of the
20    agreement and, if so, the effective date of participation
21    shall be the date the required application is filed with
22    the fund. If any such entity is unable to pay the required
23    employer contributions to the fund, then the participating
24    municipalities shall make payment of the required
25    contributions and the payments shall be allocated as
26    provided in the agreement or, if not so provided, equally

 

 

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1    among them.
2        xxi. The Illinois Municipal Electric Agency.
3        xxii. The Waukegan Port District.
4        xxiii. The Fox Waterway Agency created under the Fox
5    Waterway Agency Act.
6        xxiv. The Illinois Municipal Gas Agency.
7        xxv. The Kaskaskia Regional Port District.
8        xxvi. The Southwestern Illinois Development Authority.
9        xxvii. The Cairo Public Utility Company.
10        xxviii. Except with respect to employees who elect to
11    participate in the State Employees' Retirement System of
12    Illinois under Section 14-104.13 of this Code, the Chicago
13    Metropolitan Agency for Planning created under the
14    Regional Planning Act, provided that, with respect to the
15    benefits payable pursuant to Sections 7-146, 7-150, and
16    7-164 and the requirement that eligibility for such
17    benefits is conditional upon satisfying a minimum period of
18    service or a minimum contribution, any employee of the
19    Chicago Metropolitan Agency for Planning that was
20    immediately prior to such employment an employee of the
21    Chicago Area Transportation Study or the Northeastern
22    Illinois Planning Commission, such employee's service at
23    the Chicago Area Transportation Study or the Northeastern
24    Illinois Planning Commission and contributions to the
25    State Employees' Retirement System of Illinois established
26    under Article 14 and the Illinois Municipal Retirement Fund

 

 

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1    shall count towards the satisfaction of such requirements.
2        xxix. United Counties Council (formerly the Urban
3    Counties Council), but only if the Council has a ruling
4    from the United States Internal Revenue Service that it is
5    a governmental entity.
6        xxx. The Will County Governmental League, but only if
7    the League has a ruling from the United States Internal
8    Revenue Service that it is a governmental entity.
9    (c) The governing boards of special education joint
10agreements created under Section 10-22.31 of the School Code
11without designation of an administrative district shall be
12included within and be subject to this Article as participating
13instrumentalities when the joint agreement becomes effective.
14However, the governing board of any such special education
15joint agreement in effect before September 5, 1975 shall not be
16subject to this Article unless the joint agreement is modified
17by the school districts to provide that the governing board is
18subject to this Article, except as otherwise provided by this
19Section.
20    The governing board of the Special Education District of
21Lake County shall become subject to this Article as a
22participating instrumentality on July 1, 1997. Notwithstanding
23subdivision (a)1 of Section 7-139, on the effective date of
24participation, employees of the governing board of the Special
25Education District of Lake County shall receive creditable
26service for their prior service with that employer, up to a

 

 

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1maximum of 5 years, without any employee contribution.
2Employees may establish creditable service for the remainder of
3their prior service with that employer, if any, by applying in
4writing and paying an employee contribution in an amount
5determined by the Fund, based on the employee contribution
6rates in effect at the time of application for the creditable
7service and the employee's salary rate on the effective date of
8participation for that employer, plus interest at the effective
9rate from the date of the prior service to the date of payment.
10Application for this creditable service must be made before
11July 1, 1998; the payment may be made at any time while the
12employee is still in service. The employer may elect to make
13the required contribution on behalf of the employee.
14    The governing board of a special education joint agreement
15created under Section 10-22.31 of the School Code for which an
16administrative district has been designated, if there are
17employees of the cooperative educational entity who are not
18employees of the administrative district, may elect to
19participate in the Fund and be included within this Article as
20a participating instrumentality, subject to such application
21procedures and rules as the Board may prescribe.
22    The Boards of Control of cooperative or joint educational
23programs or projects created and administered under Section
243-15.14 of the School Code, whether or not the Boards act as
25their own administrative district, shall be included within and
26be subject to this Article as participating instrumentalities

 

 

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1when the agreement establishing the cooperative or joint
2educational program or project becomes effective.
3    The governing board of a special education joint agreement
4entered into after June 30, 1984 and prior to September 17,
51985 which provides for representation on the governing board
6by less than all the participating districts shall be included
7within and subject to this Article as a participating
8instrumentality. Such participation shall be effective as of
9the date the joint agreement becomes effective.
10    The governing boards of educational service centers
11established under Section 2-3.62 of the School Code shall be
12included within and subject to this Article as participating
13instrumentalities. The governing boards of vocational
14education cooperative agreements created under the
15Intergovernmental Cooperation Act and approved by the State
16Board of Education shall be included within and be subject to
17this Article as participating instrumentalities. If any such
18governing boards or boards of control are unable to pay the
19required employer contributions to the fund, then the school
20districts served by such boards shall make payment of required
21contributions as provided in Section 7-172. The payments shall
22be allocated among the several school districts in proportion
23to the number of students in average daily attendance for the
24last full school year for each district in relation to the
25total number of students in average attendance for such period
26for all districts served. If such educational service centers,

 

 

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1vocational education cooperatives or cooperative or joint
2educational programs or projects created and administered
3under Section 3-15.14 of the School Code are dissolved, the
4assets and obligations shall be distributed among the districts
5in the same proportions unless otherwise provided.
6    The governing board of Paris Cooperative High School shall
7be included within and be subject to this Article as a
8participating instrumentality on the effective date of this
9amendatory Act of the 96th General Assembly. If the governing
10board of Paris Cooperative High School is unable to pay the
11required employer contributions to the fund, then the school
12districts served shall make payment of required contributions
13as provided in Section 7-172. The payments shall be allocated
14among the several school districts in proportion to the number
15of students in average daily attendance for the last full
16school year for each district in relation to the total number
17of students in average attendance for such period for all
18districts served. If Paris Cooperative High School is
19dissolved, then the assets and obligations shall be distributed
20among the districts in the same proportions unless otherwise
21provided.
22    Financial Oversight Panels established under Article 1H of
23the School Code shall be included within and be subject to this
24Article as a participating instrumentality on the effective
25date of this amendatory Act of the 97th General Assembly. If
26the Financial Oversight Panel is unable to pay the required

 

 

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1employer contributions to the fund, then the school districts
2served shall make payment of required contributions as provided
3in Section 7-172. If the Financial Oversight Panel is
4dissolved, then the assets and obligations shall be distributed
5to the district served.
6    (d) The governing boards of special recreation joint
7agreements created under Section 8-10b of the Park District
8Code, operating without designation of an administrative
9district or an administrative municipality appointed to
10administer the program operating under the authority of such
11joint agreement shall be included within and be subject to this
12Article as participating instrumentalities when the joint
13agreement becomes effective. However, the governing board of
14any such special recreation joint agreement in effect before
15January 1, 1980 shall not be subject to this Article unless the
16joint agreement is modified, by the districts and
17municipalities which are parties to the agreement, to provide
18that the governing board is subject to this Article.
19    If the Board returns any employer and employee
20contributions to any employer which erroneously submitted such
21contributions on behalf of a special recreation joint
22agreement, the Board shall include interest computed from the
23end of each year to the date of payment, not compounded, at the
24rate of 7% per annum.
25    (e) Each multi-township assessment district, the board of
26trustees of which has adopted this Article by ordinance prior

 

 

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1to April 1, 1982, shall be a participating instrumentality
2included within and subject to this Article effective December
31, 1981. The contributions required under Section 7-172 shall
4be included in the budget prepared under and allocated in
5accordance with Section 2-30 of the Property Tax Code.
6    (f) The Illinois Medical District Commission created under
7the Illinois Medical District Act may be included within and
8subject to this Article as a participating instrumentality,
9notwithstanding that the location of the District is entirely
10within the City of Chicago. To become a participating
11instrumentality, the Commission must apply to the Board in the
12manner set forth in paragraph (a) of this subsection (B). If
13the Board approves the application, under the criteria and
14procedures set forth in paragraph (a) and any other applicable
15rules, criteria, and procedures of the Board, participation by
16the Commission shall commence on the effective date specified
17by the Board.
 
18(C) Prospective participants.
19     Beginning January 1, 1992, each prospective participating
20municipality or participating instrumentality shall pay to the
21Fund the cost, as determined by the Board, of a study prepared
22by the Fund or its actuary, detailing the prospective costs of
23participation in the Fund to be expected by the municipality or
24instrumentality.
25(Source: P.A. 95-677, eff. 10-11-07; 96-211, eff. 8-10-09;

 

 

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196-551, eff. 8-17-09; 96-1000, eff. 7-2-10; 96-1046, eff.
27-14-10.)
 
3    Section 15. The School Code is amended by changing Sections
41A-8, 1B-8, 8-6, 10-16.9, 10-16.11, 17-1, 17-11, 19-8, and 19-9
5and by adding Sections 1B-25, 1E-165, and 1F-165 and Article 1H
6as follows:
 
7    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
8    Sec. 1A-8. Powers of the Board in Assisting Districts
9Deemed in Financial Difficulties. To promote the financial
10integrity of school districts, the State Board of Education
11shall be provided the necessary powers to promote sound
12financial management and continue operation of the public
13schools.
14    (a) The State Superintendent of Education may require a
15school district, including any district subject to Article 34A
16of this Code, to share financial information relevant to a
17proper investigation of the district's financial condition and
18the delivery of appropriate State financial, technical, and
19consulting services to the district if the district (i) has
20been designated, through the State Board of Education's School
21District Financial Profile System, as on financial warning or
22financial watch status, (ii) has failed to file an annual
23financial report, annual budget, deficit reduction plan, or
24other financial information as required by law, (iii) has been

 

 

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1identified, through the district's annual audit or other
2financial and management information, as in serious financial
3difficulty in the current or next school year, or (iv) is
4determined to be likely to fail to fully meet any regularly
5scheduled, payroll-period obligations when due or any debt
6service payments when due or both. In addition to financial,
7technical, and consulting services provided by the State Board
8of Education, at the request of a school district, the State
9Superintendent may provide for an independent financial
10consultant to assist the district review its financial
11condition and options.
12    (b) The State Board of Education, after proper
13investigation of a district's financial condition, may certify
14that a district, including any district subject to Article 34A,
15is in financial difficulty when any of the following conditions
16occur:
17        (1) The district has issued school or teacher orders
18    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
19    of this Code.
20        (2) The district has issued tax anticipation warrants
21    or tax anticipation notes in anticipation of a second
22    year's taxes when warrants or notes in anticipation of
23    current year taxes are still outstanding, as authorized by
24    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
25    issued short-term debt against 2 future revenue sources,
26    such as, but not limited to, tax anticipation warrants and

 

 

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1    general State Aid certificates or tax anticipation
2    warrants and revenue anticipation notes.
3        (3) The district has for 2 consecutive years shown an
4    excess of expenditures and other financing uses over
5    revenues and other financing sources and beginning fund
6    balances on its annual financial report for the aggregate
7    totals of the Educational, Operations and Maintenance,
8    Transportation, and Working Cash Funds.
9        (4) The district refuses to provide financial
10    information or cooperate with the State Superintendent in
11    an investigation of the district's financial condition.
12        (5) The district is likely to fail to fully meet any
13    regularly scheduled, payroll-period obligations when due
14    or any debt service payments when due or both.
15    No school district shall be certified by the State Board of
16Education to be in financial difficulty solely by reason of any
17of the above circumstances arising as a result of (i) the
18failure of the county to make any distribution of property tax
19money due the district at the time such distribution is due or
20(ii) the failure of this State to make timely payments of
21general State aid or any of the mandated categoricals; or if
22the district clearly demonstrates to the satisfaction of the
23State Board of Education at the time of its determination that
24such condition no longer exists. If the State Board of
25Education certifies that a district in a city with 500,000
26inhabitants or more is in financial difficulty, the State Board

 

 

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

 

 

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1failed to comply with its financial plan, the State Board of
2Education may rescind approval of the plan and appoint a
3Financial Oversight Panel for the district as provided in
4Section 1B-4. This action shall be taken only after the
5district has been given notice and an opportunity to appear
6before the State Board of Education to discuss its failure to
7comply with its financial plan.
8    No bonds, notes, teachers orders, tax anticipation
9warrants or other evidences of indebtedness shall be issued or
10sold by a school district or be legally binding upon or
11enforceable against a local board of education of a district
12certified to be in financial difficulty unless and until the
13financial plan required under this Section has been approved by
14the State Board of Education.
15    Any financial profile compiled and distributed by the State
16Board of Education in Fiscal Year 2009 or any fiscal year
17thereafter shall incorporate such adjustments as may be needed
18in the profile scores to reflect the financial effects of the
19inability or refusal of the State of Illinois to make timely
20disbursements of any general State aid or mandated categorical
21aid payments due school districts or to fully reimburse school
22districts for mandated categorical programs pursuant to
23reimbursement formulas provided in this School Code.
24(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10.)
 
25    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)

 

 

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1    Sec. 1B-8. There is created in the State Treasury a special
2fund to be known as the School District Emergency Financial
3Assistance Fund (the "Fund"). The School District Emergency
4Financial Assistance Fund shall consist of appropriations,
5loan repayments, grants from the federal government, and
6donations from any public or private source. Moneys in the Fund
7may be appropriated only to the Illinois Finance Authority and
8the State Board for those purposes authorized under this
9Article and Articles Article 1F and 1H of this Code. The
10appropriation may be allocated and expended by the State Board
11for contractual services as grants to provide technical
12assistance or consultation and consulting services to school
13districts to assess their financial condition and to Financial
14Oversight Panels that petition for emergency financial
15assistance grants. The and by the Illinois Finance Authority
16may provide as loans to school districts which are the subject
17of an approved petition for emergency financial assistance
18under Section 1B-4, or 1F-62, or 1H-65 of this Code. Neither
19the State Board of Education nor the Illinois Finance Authority
20may collect any fees for providing these services.
21    From the amount allocated to each such school district
22under this Article the State Board shall identify a sum
23sufficient to cover all approved costs of the Financial
24Oversight Panel established for the respective school
25district. If the State Board and State Superintendent of
26Education have not approved emergency financial assistance in

 

 

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1conjunction with the appointment of a Financial Oversight
2Panel, the Panel's approved costs shall be paid from deductions
3from the district's general State aid.
4    The Financial Oversight Panel may prepare and file with the
5State Superintendent a proposal for emergency financial
6assistance for the school district and for its operations
7budget. No expenditures from the Fund shall be authorized by
8the State Superintendent until he or she has approved the
9request proposal of the Panel, either as submitted or in such
10lesser amount determined by the State Superintendent.
11    The maximum amount of an emergency financial assistance
12loan which may be allocated to any school district under this
13Article, including moneys necessary for the operations of the
14Panel, shall not exceed $4,000 times the number of pupils
15enrolled in the school district during the school year ending
16June 30 prior to the date of approval by the State Board of the
17petition for emergency financial assistance, as certified to
18the local board and the Panel by the State Superintendent. An
19emergency financial assistance grant shall not exceed $1,000
20times the number of such pupils. A district may receive both a
21loan and a grant.
22    The payment of an emergency State financial assistance
23grant or loan shall be subject to appropriation by the General
24Assembly. Payment of the emergency State financial assistance
25loan is subject to the applicable provisions of the Illinois
26Finance Authority Act. Emergency State financial assistance

 

 

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1allocated and paid to a school district under this Article may
2be applied to any fund or funds from which the local board of
3education of that district is authorized to make expenditures
4by law.
5    Any emergency financial assistance grant proposed by the
6Financial Oversight Panel and approved by the State
7Superintendent may be paid in its entirety during the initial
8year of the Panel's existence or spread in equal or declining
9amounts over a period of years not to exceed the period of the
10Panel's existence. An emergency financial assistance loan
11proposed by the Financial Oversight Panel and approved by the
12Illinois Finance Authority may be paid in its entirety during
13the initial year of the Panel's existence or spread in equal or
14declining amounts over a period of years not to exceed the
15period of the Panel's existence. All loans loan payments made
16by the Illinois Finance Authority from the School District
17Emergency Financial Assistance Fund for a school district shall
18be required to be repaid, with simple interest over the term of
19the loan at a rate equal to 50% of the one-year Constant
20Maturity Treasury (CMT) yield as last published by the Board of
21Governors of the Federal Reserve System before the date on
22which the district's loan is approved by the Illinois Finance
23Authority State Board of Education, not later than the date the
24Financial Oversight Panel ceases to exist. The Panel shall
25establish and the Illinois Finance Authority shall approve the
26terms and conditions, including the schedule, of repayments.

 

 

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1The schedule shall provide for repayments commencing July 1 of
2each year or upon each fiscal year's receipt of moneys from a
3tax levy for emergency financial assistance. Repayment shall be
4incorporated into the annual budget of the school district and
5may be made from any fund or funds of the district in which
6there are moneys available. An emergency financial assistance
7loan to the Panel or district shall not be considered part of
8the calculation of a district's debt for purposes of the
9limitation specified in Section 19-1 of this Code. Default on
10repayment is subject to the Illinois Grant Funds Recovery Act.
11When moneys are repaid as provided herein they shall not be
12made available to the local board for further use as emergency
13financial assistance under this Article at any time thereafter.
14All repayments required to be made by a school district shall
15be received by the State Board and deposited in the School
16District Emergency Financial Assistance Fund.
17    In establishing the terms and conditions for the repayment
18obligation of the school district the Panel shall annually
19determine whether a separate local property tax levy is
20required. The board of any school district with a tax rate for
21educational purposes for the prior year of less than 120% of
22the maximum rate for educational purposes authorized by Section
2317-2 shall provide for a separate tax levy for emergency
24financial assistance repayment purposes. Such tax levy shall
25not be subject to referendum approval. The amount of the levy
26shall be equal to the amount necessary to meet the annual

 

 

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1repayment obligations of the district as established by the
2Panel, or 20% of the amount levied for educational purposes for
3the prior year, whichever is less. However, no district shall
4be required to levy the tax if the district's operating tax
5rate as determined under Section 18-8 or 18-8.05 exceeds 200%
6of the district's tax rate for educational purposes for the
7prior year.
8(Source: P.A. 94-234, eff. 7-1-06.)
 
9    (105 ILCS 5/1B-25 new)
10    Sec. 1B-25. Establishment prohibited. No school district
11may have a Financial Oversight Panel established pursuant to
12this Article after Article 1H of this Code is established.
 
13    (105 ILCS 5/1E-165 new)
14    Sec. 1E-165. Repeal. When the Authority established
15pursuant to this Article is abolished pursuant to Section
161E-155, this Article shall be repealed.
 
17    (105 ILCS 5/1F-165 new)
18    Sec. 1F-165. Repeal. When the Authority established
19pursuant to this Article is abolished pursuant to Section
201F-155, this Article shall be repealed.
 
21    (105 ILCS 5/Art. 1H heading new)
22
ARTICLE 1H. FINANCIAL OVERSIGHT PANELS

 

 

 

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1    (105 ILCS 5/1H-1 new)
2    Sec. 1H-1. Short title. This Article may be cited as the
3Financial Oversight Panel Law.
 
4    (105 ILCS 5/1H-5 new)
5    Sec. 1H-5. Findings; purpose; intent.
6    (a) The General Assembly finds all of the following:
7        (1) A fundamental goal of the people of this State, as
8    expressed in Section 1 of Article X of the Illinois
9    Constitution, is the educational development of all
10    persons to the limits of their capacities. When a board of
11    education faces financial difficulties, continued
12    operation of the public school system is threatened.
13        (2) A sound financial structure is essential to the
14    continued operation of any school system. It is vital to
15    commercial, educational, and cultural interests that
16    public schools remain in operation. To achieve that goal,
17    public school systems must have effective access to the
18    private market to borrow short and long term funds.
19        (3) To promote the financial integrity of districts, as
20    defined in this Article, it is necessary to provide for the
21    creation of financial oversight panels with the powers
22    necessary to promote sound financial management and to
23    ensure the continued operation of the public schools.
24    (b) It is the purpose of this Article to provide a secure

 

 

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1financial basis for the continued operation of public schools.
2The intention of the General Assembly, in creating this
3Article, is to establish procedures, provide powers, and impose
4restrictions to ensure the financial and educational integrity
5of public school districts, while leaving principal
6responsibility for the educational policies of public schools
7to their boards of education, consistent with the requirements
8for satisfying the public policy and purpose set forth in this
9Article.
 
10    (105 ILCS 5/1H-10 new)
11    Sec. 1H-10. Definitions. As used in this Article:
12    "Budget" means the annual budget of the district required
13under Section 17-1 of this Code, as in effect from time to
14time.
15    "Chairperson" means the Chairperson of the Panel.
16    "District" means any school district having a population of
17not more than 500,000 that has had a Financial Oversight Panel
18established under this Article.
19    "Financial plan" means the financial plan of the district
20to be developed pursuant to this Article, as in effect from
21time to time.
22    "Fiscal year" means the fiscal year of the district.
23    "Obligations" means notes or other short-term debts or
24liabilities of the Panel.
25    "Panel" means a Financial Oversight Panel created under

 

 

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1this Article.
2    "State Board" means the State Board of Education.
3    "State Superintendent" means the State Superintendent of
4Education.
 
5    (105 ILCS 5/1H-15 new)
6    Sec. 1H-15. Establishment of Financial Oversight Panels;
7duties of district.
8    (a) A school district may petition the State Board for the
9establishment of a Financial Oversight Panel for the district
10or the State Board may establish a Panel without a petition
11from the district. The petition shall cite the reasons why the
12creation of a Financial Oversight Panel for the district is
13necessary. In determining whether or not to place a district
14under a Panel, the State Board shall consider all of the
15following:
16        (1) If a Panel is in the best educational and financial
17    interests of the district.
18        (2) If a Panel is in the best interest of other schools
19    in the area and the educational welfare of all the pupils
20    therein.
21        (3) Whether the board of education has complied with
22    the requirements of Section 1A-8 of this Code.
23    (b) Upon establishment of a Financial Oversight Panel, all
24of the following shall occur:
25        (1) There is established a body both corporate and

 

 

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1    politic to be known as the "(Name of School District)
2    Financial Oversight Panel", which in this name shall
3    exercise all authority vested in a Panel by this Article.
4        (2) The powers and duties of a Financial Oversight
5    Panel established pursuant to this Article shall include
6    the duties and obligations of financial oversight panels
7    established under Article 1B of this Code, in addition to
8    any duties and obligations established under this Article.
9    However, if there is any conflict between the provisions of
10    this Article and the provisions of Article 1B of this Code,
11    the provisions of this Article control.
12        (3) The Financial Oversight Panel, the school board,
13    and the district superintendent or chief executive officer
14    shall develop goals and objectives to assist the district
15    in obtaining financial stability. The goals and objectives
16    must be developed as part of the financial plan that the
17    school board is required to develop, adopt, and submit to
18    the Panel in accordance with Section 1B-12 of this Code.
19    The goals and objectives must be formally reviewed at
20    agreed to intervals, but at least one time per year. Review
21    shall include progress made and recommendations and
22    modifications needed to achieve abolition of financial
23    oversight provided for under Section 1H-115 of this Code.
24    (c) Any school district having a Financial Oversight Panel
25established under Article 1B of this Code or any Financial
26Oversight Panel established under Article 1B may petition the

 

 

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1State Board for the establishment of a Financial Oversight
2Panel under this Article and concurrent dissolution of the
3Article 1B Panel. All records, papers, books, funds, or other
4assets or liabilities belonging to the dissolving Financial
5Oversight Panel shall be transferred to the newly established
6Financial Oversight Panel.
 
7    (105 ILCS 5/1H-20 new)
8    Sec. 1H-20. Members of Panel; meetings.
9    (a) Upon establishment of a Financial Oversight Panel under
10Section 1H-15 of this Code, the State Superintendent shall
11within 15 working days thereafter appoint 5 members to serve on
12a Financial Oversight Panel for the district. Members appointed
13to the Panel shall serve at the pleasure of the State
14Superintendent. The State Superintendent shall designate one
15of the members of the Panel to serve as its Chairperson. In the
16event of vacancy or resignation, the State Superintendent
17shall, within 10 days after receiving notice, appoint a
18successor to serve out that member's term.
19    (b) Members of the Panel shall be selected primarily on the
20basis of their experience and education in financial
21management, with consideration given to persons knowledgeable
22in education finance. Two members of the Panel shall be
23residents of the school district that the Panel serves. A
24member of the Panel may not be a member of the district's
25school board or an employee of the district nor may a member

 

 

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1have a direct financial interest in the district.
2    (c) Panel members may be reimbursed by the State Board for
3travel and other necessary expenses incurred in the performance
4of their official duties. The amount reimbursed members for
5their expenses shall be charged to the school district as part
6of any emergency financial assistance and incorporated as a
7part of the terms and conditions for repayment of the
8assistance or shall be deducted from the district's general
9State aid as provided in Section 1H-65 of this Code.
10    (d) With the exception of the chairperson, who shall be
11designated as provided in subsection (a) of this Section, the
12Panel may elect such officers as it deems appropriate.
13    (e) The first meeting of the Panel shall be held at the
14call of the Chairperson. The Panel shall prescribe the times
15and places for its meetings and the manner in which regular and
16special meetings may be called and shall comply with the Open
17Meetings Act. The Panel shall also comply with the Freedom of
18Information Act.
19    (f) Three members of the Panel shall constitute a quorum. A
20majority of members present is required to pass a measure.
 
21    (105 ILCS 5/1H-25 new)
22    Sec. 1H-25. General powers.
23    (a) The purposes of the Panel shall be to exercise
24financial control over the district and to furnish financial
25assistance so that the district can provide public education

 

 

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1within the district's jurisdiction while permitting the
2district to meet its obligations to its creditors and the
3holders of its debt. Except as expressly limited by this
4Article, the Panel shall have all powers granted to a voluntary
5or involuntary Financial Oversight Panel and to a Financial
6Administrator under Article 1B of this Code and all other
7powers necessary to meet its responsibilities and to carry out
8its purposes and the purposes of this Article, including
9without limitation all of the following powers, provided that
10the Panel shall have no power to terminate an employee without
11following the statutory procedures for such terminations set
12forth in this Code:
13        (1) To sue and to be sued.
14        (2) To determine at a regular or special meeting that
15    the district has insufficient or inadequate funds or other
16    financial resources with respect to any contract (other
17    than collective bargaining agreements), leases, subleases,
18    and other instruments or agreements applicable to or
19    binding upon the school board, and to make, cancel, modify,
20    or execute contracts (other than collective bargaining
21    agreements), leases, subleases, and all other instruments
22    or agreements necessary, convenient, or otherwise
23    beneficial to the district and consistent with the powers
24    and functions granted by this Article or other applicable
25    law.
26        (3) To lease or purchase real or personal property

 

 

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1    necessary or convenient for its purposes; to execute and
2    deliver deeds for real property held in its own name; and
3    to sell, lease, or otherwise dispose of such of its
4    property as, in the judgment of the Panel, is no longer
5    necessary for its purposes.
6        (4) To employ officers, agents, and employees of the
7    Panel, to define their duties and qualifications, and to
8    fix their compensation and benefits.
9        (5) To transfer to the district such sums of money as
10    are not required for other purposes.
11        (6) To borrow money, including without limitation
12    accepting State loans, and to issue obligations pursuant to
13    this Article; to fund, refund, or advance refund the same;
14    to provide for the rights of the holders of its
15    obligations; and to repay any advances.
16        (7) To levy all property tax levies that otherwise
17    could be levied by the district if the district fails to
18    certify and return the certificate of tax levy to the
19    county clerk on or before the first Tuesday in November,
20    and to make levies pursuant to Section 1H-65 of this Code.
21        (8) Subject to the provisions of any contract with or
22    for the benefit of the holders of its obligations, to
23    purchase or redeem its obligations.
24        (9) To procure all necessary goods and services for the
25    Panel in compliance with the purchasing laws and
26    requirements applicable to the district.

 

 

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1        (10) To do any and all things necessary or convenient
2    to carry out its purposes and exercise the powers given to
3    it by this Article.
4        (11) To recommend any type of reorganization of the
5    district, in whole or in part, pursuant to Article 7 or 11E
6    of this Code or Section 10-22.22b or 10-22.22c of this Code
7    to the General Assembly if in the Panel's judgment the
8    circumstances so require.
9    (b) Notwithstanding the provisions of subsection (a) of
10this Section, the Panel shall have no power to do any of the
11following:
12        (1) Unilaterally cancel or modify any collective
13    bargaining agreement in force upon the date of creation of
14    the Panel.
15        (2) Lease, sublease, buy, build, or otherwise acquire
16    any additional school buildings or grounds for or on behalf
17    of the district without prior approval by referendum held
18    pursuant to Section 19-2 or 19-3 of this Code.
19        (3) Authorize payments for or incur any debt for any
20    additional school buildings or grounds as specified in
21    subdivision (2) of this subsection (b) without prior
22    approval via referendum pursuant to the provisions of
23    Sections 19-2 through 19-7 of this Code, the provisions of
24    Section 10-22.36 of this Code to the contrary
25    notwithstanding.
 

 

 

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1    (105 ILCS 5/1H-30 new)
2    Sec. 1H-30. Employees. The Panel may employ individuals
3under this Section if it is so warranted. These individuals may
4include any of the following:
5        (1) A chief executive officer who shall supervise the
6    Panel's staff, including the chief educational officer and
7    the chief fiscal officer, and shall have ultimate
8    responsibility for implementing the policies, procedures,
9    directives, and decisions of the Panel. The chief executive
10    officer shall have the authority to determine the agenda
11    and order of business at school board meetings, as needed
12    in order to carry forward and implement the objectives and
13    priorities of the school board and Financial Oversight
14    Panel in the administration and management of the district.
15    This individual is not required to hold any certificate
16    issued under Article 21 of this Code. The chief executive
17    officer shall have the powers and duties as assigned by the
18    Panel in accordance with this Code.
19        (2) A chief educational officer, who may be employed by
20    the Panel if there is no superintendent in the district or
21    if the Panel, at a regular or special meeting, finds that
22    cause exists to cancel the contract of the district's
23    superintendent who is serving at the time the Panel is
24    established. Cancellation of an existing superintendent
25    contract may be done only pursuant to the same requirements
26    and in the same manner as the school board may cancel the

 

 

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1    contract. A chief educational officer employed under this
2    subdivision (2) shall have the powers and duties of a
3    school district superintendent under this Code and such
4    other duties as may be assigned by the Panel in accordance
5    with this Code.
6        (3) A chief fiscal officer, who may be employed by the
7    Panel. This individual shall be under the direction of the
8    Panel or the chief executive officer employed by the Panel
9    and shall have all of the powers and duties of the
10    district's chief school business official and any other
11    duties regarding budgeting, accounting, and other
12    financial matters that are assigned by the Panel, in
13    accordance with this Code.
14        (4) A superintendent, who shall be under the direction
15    of the Panel or the chief executive officer employed by the
16    Panel and shall have all of the powers and duties of a
17    school district superintendent under this Code assigned by
18    the Panel and such other duties as may be assigned by the
19    Panel in accordance with this Code.
20        (5) A chief school business official, who shall have
21    all of the powers and duties of a chief school business
22    official under this Code assigned by the Panel and such
23    other duties as may be assigned by the Panel in accordance
24    with this Code.
25    An individual employed by the Panel as a superintendent or
26a chief school business official under this Section must hold

 

 

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1the appropriate certification for these positions. Individuals
2employed by the Panel as a chief executive officer, chief
3educational officer, or chief fiscal officer under this Section
4are not required to hold certification. A chief educational
5officer under this Section must not be employed by the Panel
6during a period a superintendent is employed by the district
7and a chief fiscal officer under this Section must not be
8employed by the Panel during a period a chief school business
9official is employed by the district.
10    Individuals employed under subdivision (2), (3), (4), or
11(5) of this Section shall report to the Panel or to the chief
12executive officer under this Section if there is one.
 
13    (105 ILCS 5/1H-35 new)
14    Sec. 1H-35. School treasurer.
15    (a) In Class I county school units and in each district
16that forms part of a Class II county school unit but that has
17withdrawn from the jurisdiction and authority of the trustees
18of schools of the township in which the district is located and
19from the jurisdiction and authority of the township treasurer
20in the Class II county school unit, the Panel may, in its
21discretion, remove the treasurer appointed or elected by the
22school board of the district and appoint a new treasurer to
23succeed the removed treasurer as provided in Section 8-19 of
24this Code.
25    (b) In the case of a district located in a Class II county

 

 

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1school unit where such district is subject to the jurisdiction
2and authority of township trustees and the jurisdiction and
3authority of the township treasurer, the Panel may require
4production of bank reconciliations and other reports or
5statements as required under Sections 8-6 and 8-13 through 8-15
6of this Code.
7    (c) All school treasurers appointed or elected pursuant to
8this Section shall be subject to the provisions of Sections 8-2
9through 8-20 and other applicable provisions of the School
10Code.
 
11    (105 ILCS 5/1H-45 new)
12    Sec. 1H-45. Collective bargaining agreements. In
13conjunction with the district, the Panel shall have the power
14to negotiate collective bargaining agreements with the
15district's employees. Upon union ratification, the district
16and the Panel shall execute the agreements negotiated by the
17Panel, and the district shall be bound by and shall administer
18the agreements in all respects as if the agreements had been
19negotiated by the district itself.
 
20    (105 ILCS 5/1H-50 new)
21    Sec. 1H-50. Deposits and investments.
22    (a) The Panel shall have the power to establish checking
23and whatever other banking accounts it may deem appropriate for
24conducting its affairs.

 

 

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1    (b) Subject to the provisions of any contract with or for
2the benefit of the holders of its obligations, the Panel may
3invest any funds not required for immediate use or
4disbursement, as provided in the Public Funds Investment Act.
 
5    (105 ILCS 5/1H-55 new)
6    Sec. 1H-55. Cash accounts and bank accounts.
7    (a) The Panel shall require the district or any officer of
8the district, including the district's treasurer, to establish
9and maintain separate cash accounts and separate bank accounts
10in accordance with such rules, standards, and procedures as the
11Panel may prescribe.
12    (b) The Panel shall have the power to assume exclusive
13administration of the cash accounts and bank accounts of the
14district, to establish and maintain whatever new cash accounts
15and bank accounts it may deem appropriate, and to withdraw
16funds from these accounts for the lawful expenditures of the
17district.
 
18    (105 ILCS 5/1H-60 new)
19    Sec. 1H-60. Financial, management, and budgetary
20structure. Upon direction of the Panel, the district shall
21reorganize the financial accounts, management, and budgetary
22systems of the district in a manner consistent with rules
23adopted by the State Board regarding accounting, budgeting,
24financial reporting, and auditing as the Panel deems

 

 

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1appropriate to remedy the conditions that led the Panel to be
2created and to achieve greater financial responsibility and to
3reduce financial inefficiency.
 
4    (105 ILCS 5/1H-65 new)
5    Sec. 1H-65. School district emergency financial
6assistance; grants and loans. The Panel may prepare and file
7with the State Superintendent a proposal for emergency
8financial assistance for the school district and for the
9operations budget of the Panel, in accordance with Section 1B-8
10of this Code. A school district may receive both a loan and a
11grant.
 
12    (105 ILCS 5/1H-70 new)
13    Sec. 1H-70. Tax anticipation warrants, tax anticipation
14notes, revenue anticipation certificates or notes, general
15State aid anticipation certificates, and lines of credit. With
16the approval of the State Superintendent and provided that the
17district is unable to secure short-term financing after 3
18attempts, a Panel shall have the same power as a district to do
19the following:
20        (1) issue tax anticipation warrants under the
21    provisions of Section 17-16 of this Code against taxes
22    levied by either the school board or the Panel pursuant to
23    Section 1H-25 of this Code;
24        (2) issue tax anticipation notes under the provisions

 

 

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1    of the Tax Anticipation Note Act against taxes levied by
2    either the school board or the Panel pursuant to Section
3    1H-25 of this Code;
4        (3) issue revenue anticipation certificates or notes
5    under the provisions of the Revenue Anticipation Act;
6        (4) issue general State aid anticipation certificates
7    under the provisions of Section 18-18 of this Code; and
8        (5) establish and utilize lines of credit under the
9    provisions of Section 17-17 of this Code.
10    Tax anticipation warrants, tax anticipation notes, revenue
11anticipation certificates or notes, general State aid
12anticipation certificates, and lines of credit are considered
13borrowing from sources other than the State and are subject to
14Section 1H-65 of this Code.
 
15    (105 ILCS 5/1H-75 new)
16    Sec. 1H-75. Tax for emergency Financial Oversight Panel
17financial aid. If the Panel is unable to secure short-term
18borrowing pursuant to Section 1H-70 of this Code, the Panel:
19        (1) based upon an original or amended budget filed by a
20    Financial Oversight Panel and approved by the State Board
21    of Education, may levy a one-time-only tax, in an amount
22    not to exceed 75% of the amount expended by the school
23    district subject to the oversight of the Panel in the
24    immediately preceding year for educational, operations and
25    maintenance, transportation, and municipal retirement

 

 

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1    purposes; as reflected in the most recently filed annual
2    financial report, and as adjusted by the CPI most recently
3    under the Property Tax Extension Limitation Law;
4        (2) following approval by the State Board of Education,
5    shall file a certificate of tax levy with the county clerk
6    or clerks with whom the school district must file tax
7    levies, such taxes to be extended against all the property
8    of the school district upon the value of the taxable
9    property within its territory, as equalized or assessed by
10    the Department of Revenue; and
11        (3) may issue warrants, or may provide a fund to meet
12    the expenses by issuing and disposing of warrants, drawn
13    against and in anticipation of the tax levied pursuant to
14    this Section, for the payment of the necessary expenses of
15    the district, either for transportation, educational, or
16    all operations and maintenance purposes or for payments to
17    the Illinois Municipal Retirement Fund, as the case may be,
18    to the extent of 75% of the total amount of the tax so
19    levied. The warrants shall show upon their face that they
20    are payable in the numerical order of their issuance solely
21    from such taxes when collected, and shall be received by
22    any collector of taxes in payment of the taxes against
23    which they are issued, and such taxes shall be set apart
24    and held for their payment; every warrant shall bear
25    interest, payable only out of the taxes against which it is
26    drawn, at a rate not exceeding the maximum rate authorized

 

 

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1    by the Bond Authorization Act, as amended at the time of
2    the making of the contract, if issued before July 1, 1971
3    and if issued thereafter at the rate of not to exceed the
4    maximum rate authorized by the Bond Authorization Act, as
5    amended at the time of the making of the contract, from the
6    date of its issuance until paid or until notice shall be
7    given by publication in a newspaper or otherwise that the
8    money for its payment is available and that it will be paid
9    on presentation, unless a lower rate of interest is
10    specified therein, in which case the interest shall be
11    computed and paid at the lower rate.
 
12    (105 ILCS 5/1H-85 new)
13    Sec. 1H-85. Obligations as legal investments. The
14obligations issued under the provisions of this Article are
15hereby made securities in which all public officers and bodies
16of this State, all political subdivisions of this State, all
17persons carrying on an insurance business, all banks, bankers,
18trust companies, savings banks, and savings associations
19(including savings and loan associations, building and loan
20associations, investment companies, and other persons carrying
21on a banking business), and all credit unions, pension funds,
22administrators, and guardians who are or may be authorized to
23invest in bonds or in other obligations of the State may
24properly and legally invest funds, including capital, in their
25control or belonging to them. The obligations are also hereby

 

 

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1made securities that may be deposited with and may be received
2by all public officers and bodies of the State, all political
3subdivisions of the State, and public corporations for any
4purpose for which the deposit of bonds or other obligations of
5the State is authorized.
 
6    (105 ILCS 5/1H-90 new)
7    Sec. 1H-90. Reports. The Panel, upon taking office and
8annually thereafter, shall prepare and submit to the State
9Superintendent a report that includes the audited financial
10statement for the preceding fiscal year prepared and audited in
11compliance with the provisions of Sections 3-7 and 3-15.1 of
12this Code, an approved financial plan, and a statement of the
13major steps necessary to accomplish the objectives of the
14financial plan. This report must be submitted annually by March
151 of each year and must detail information from the previous
16school year. The school board must be allowed to comment on the
17annual report of the Panel, and the comments of the school
18board shall be included as an appendix to such annual report of
19the Panel.
 
20    (105 ILCS 5/1H-95 new)
21    Sec. 1H-95. Audit of Panel. The State Superintendent may
22require a separate audit of the Panel, otherwise the activities
23of the Panel must be included in the scope of the audit of the
24school district. A copy of the audit report covering the Panel

 

 

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1must be submitted to the State Superintendent.
 
2    (105 ILCS 5/1H-100 new)
3    Sec. 1H-100. Assistance by State agencies, units of local
4government, and school districts. The district shall render
5such services to and permit the use of its facilities and
6resources by the Panel at no charge as may be requested by the
7Panel. Any State agency, unit of local government, or school
8district may, within its lawful powers and duties, render such
9services to the Panel as may be requested by the Panel. Upon
10request of the Panel, any State agency, unit of local
11government, or school district is authorized and empowered to
12loan to the Panel such officers and employees as the Panel may
13deem necessary in carrying out its functions and duties.
14Officers and employees so transferred shall not lose or forfeit
15their employment status or rights.
 
16    (105 ILCS 5/1H-105 new)
17    Sec. 1H-105. Property of Panel exempt from taxation. The
18property of the Panel is exempt from taxation.
 
19    (105 ILCS 5/1H-110 new)
20    Sec. 1H-110. Sanctions.
21    (a) No member, officer, employee, or agent of the district
22may commit the district to any contract or other obligation or
23incur any liability on behalf of the district for any purpose

 

 

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1if the amount of the contract, obligation, or liability is in
2excess of the amount authorized for that purpose then available
3under the financial plan and budget then in effect.
4    (b) No member, officer, employee, or agent of the district
5may commit the district to any contract or other obligation on
6behalf of the district for the payment of money for any purpose
7required to be approved by the Panel unless the contract or
8other obligation has been approved by the Panel.
9    (c) No member, officer, employee, or agent of the district
10may take any action in violation of any valid order of the
11Panel, may fail or refuse to take any action required by any
12such order, may prepare, present, certify, or report any
13information, including any projections or estimates, for the
14Panel or any of its agents that is false or misleading, or,
15upon learning that any such information is false or misleading,
16may fail promptly to advise the Panel or its agents.
17    (d) In addition to any penalty or liability under any other
18law, any member, officer, employee, or agent of the district
19who violates subsection (a), (b), or (c) of this Section is
20subject to appropriate administrative discipline as may be
21imposed by the Panel, including, if warranted, suspension from
22duty without pay, removal from office, or termination of
23employment.
 
24    (105 ILCS 5/1H-115 new)
25    Sec. 1H-115. Abolition of Panel.

 

 

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1    (a) Except as provided in subsections (b), (c), and (d) of
2this Section, the Panel shall be abolished 10 years after its
3creation.
4    (b) The State Board, upon recommendation of the Panel or
5petition of the school board, may abolish the Panel at any time
6after the Panel has been in existence for 3 years if no
7obligations of the Panel are outstanding or remain undefeased
8and upon investigation and finding that:
9        (1) none of the factors specified in Section 1A-8 of
10    this Code remain applicable to the district; and
11        (2) substantial achievement of the goals and
12    objectives established pursuant to the financial plan and
13    required under Section 1H-15 of this Code.
14    (c) The Panel of a district that otherwise meets all of the
15requirements for abolition of a Panel under subsection (b) of
16this Section except for the fact that there are outstanding
17financial obligations of the Panel may petition the State Board
18for reinstatement of all of the school boards powers and duties
19assumed by the Panel; and if approved by the State Board, then:
20        (1) the Panel shall continue in operation, but its
21    powers and duties shall be limited to those necessary to
22    manage and administer its outstanding obligations;
23        (2) the school board shall once again begin exercising
24    all of the powers and duties otherwise allowed by statute;
25    and
26        (3) the Panel shall be abolished as provided in

 

 

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1    subsection (a) of this Section.
2    (d) If the Panel of a district that otherwise meets all of
3the requirements for abolition of a Panel under subsection (b)
4of this Section, except for outstanding obligations of the
5Panel, then the district may petition the State Board for
6abolition of the Panel if the district:
7        (1) establishes an irrevocable trust fund, the purpose
8    of which is to provide moneys to defease the outstanding
9    obligations of the Panel; and
10        (2) issues funding bonds pursuant to the provisions of
11    Section 19-8 and 19-9 of this Code.
12    A district with a Panel that falls under these provisions
13shall be abolished as provided in subsection (a) of this
14Section.
 
15    (105 ILCS 5/1H-120 new)
16    Sec. 1H-120. Indemnification; legal representation;
17limitations of actions after abolition.
18    (a) The Panel may indemnify any member, officer, employee,
19or agent who was or is a party or is threatened to be made a
20party to any threatened, pending, or completed action, suit, or
21proceeding, whether civil, criminal, administrative, or
22investigative, by reason of the fact that he or she was a
23member, officer, employee, or agent of the Panel, against
24expenses (including attorney's fees, judgments, fines, and
25amounts paid in settlement actually and reasonably incurred by

 

 

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1him or her in connection with the action, suit, or proceeding)
2if he or she acted in good faith and in a manner that he or she
3reasonably believed to be in or not opposed to the best
4interests of the Panel and, with respect to any criminal action
5or proceeding, had no reasonable cause to believe his or her
6conduct was unlawful. The termination of any action, suit, or
7proceeding by judgment, order, settlement, or conviction or
8upon a plea of nolo contendere or its equivalent, shall not, of
9itself, create a presumption that the person did not act in
10good faith in a manner that he or she reasonably believed to be
11in or not opposed to the best interests of the Panel and, with
12respect to any criminal action or proceeding, had reasonable
13cause to believe that his or her conduct was unlawful.
14    To the extent that a member, officer, employee, or agent of
15the Panel has been successful, on the merits or otherwise, in
16the defense of any such action, suit, or proceeding referred to
17in this subsection (b) or in defense of any claim, issue, or
18matter therein, he or she shall be indemnified against
19expenses, including attorney's fees, actually and reasonably
20incurred by him or her in connection therewith. Any such
21indemnification shall be made by the Panel only as authorized
22in the specific case, upon a determination that indemnification
23of the member, officer, employee, or agent is proper in the
24circumstances because he or she has met the applicable standard
25of conduct. The determination shall be made (i) by the Panel by
26a majority vote of a quorum consisting of members who are not

 

 

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1parties to the action, suit, or proceeding or (ii) if such a
2quorum is not obtainable or, even if obtainable, a quorum of
3disinterested members so directs, by independent legal counsel
4in a written opinion.
5    Reasonable expenses incurred in defending an action, suit,
6or proceeding shall be paid by the Panel in advance of the
7final disposition of the action, suit, or proceeding, as
8authorized by the Panel in the specific case, upon receipt of
9an undertaking by or on behalf of the member, officer,
10employee, or agent to repay the amount, unless it is ultimately
11determined that he or she is entitled to be indemnified by the
12Panel as authorized in this Section.
13    Any member, officer, employee, or agent against whom any
14action, suit, or proceeding is brought may employ his or her
15own attorney to appear on his or her behalf.
16    The right to indemnification accorded by this Section shall
17not limit any other right to indemnification to which the
18member, officer, employee, or agent may be entitled. Any rights
19under this Section shall inure to the benefit of the heirs,
20executors, and administrators of any member, officer,
21employee, or agent of the Panel.
22    The Panel may purchase and maintain insurance on behalf of
23any person who is or was a member, officer, employee, or agent
24of the Panel against any liability asserted against him or her
25and incurred by him or her in any such capacity or arising out
26of his or her status as such, whether or not the Panel could

 

 

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1have the power to indemnify him or her against liability under
2the provisions of this Section.
3    (b) The Panel shall be considered a State agency for
4purposes of receiving representation by the Attorney General.
5Members, officers, employees, and agents of the Panel shall be
6entitled to representation and indemnification under the State
7Employee Indemnification Act.
8    (c) Abolition of the Panel pursuant to Section 1H-115 of
9this Code shall bar any remedy available against the Panel, its
10members, employees, or agents for any right or claim existing
11or any liability incurred prior to the abolition, unless the
12action or other proceeding is commenced prior to the expiration
13of 2 years after the date of the abolition.
 
14    (105 ILCS 5/8-6)  (from Ch. 122, par. 8-6)
15    Sec. 8-6. Custody of school funds.
16    The school treasurer shall have custody of the school funds
17and shall keep in a cash book separate cash balances. In the
18cash book he shall enter in separate accounts the balance,
19total of all moneys received in each fund, and the total of the
20orders countersigned or checks signed with respect to each fund
21and extend the balances and the aggregate cash balance for all
22funds balance at least monthly. The treasurer and shall
23reconcile such balances balance with the accounting or
24bookkeeping department of the district in conformity with a
25template provided by the State Board of Education monthly.

 

 

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1School districts on the financial watch or warning list that
2are required to submit deficit reduction plans in accordance
3with Section 17-1 of this Code or that are certified in
4financial difficulty in accordance with Section 1-A8 of this
5Code must transmit the cash balances as required pursuant to
6this Section 8-6 of this Code to the State Board of Education
7quarterly from the treasurer.
8(Source: Laws 1961, p. 31.)
 
9    (105 ILCS 5/10-16.9 new)
10    Sec. 10-16.9. Bank reconciliation reports. School
11districts on the financial watch or warning list that are
12required to submit deficit reduction plans pursuant to Section
1317-1 of this Code or that are certified in financial difficulty
14must transmit the bank reconciliation reports from the school
15treasurer as required pursuant to Section 8-6 of this Code to
16the State Board of Education quarterly. The State Board of
17Education shall establish the dates by which the reconciliation
18reports must be submitted and provide a template for those
19districts to utilize.
 
20    (105 ILCS 5/10-16.11 new)
21    Sec. 10-16.11. Payment of outstanding obligations of a
22Financial Oversight Panel. The school board of a district
23subject to a Financial Oversight Panel pursuant to Article 1H
24of this Code that, except for the existence of outstanding

 

 

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1financial obligations of the Financial Oversight Panel, would
2be able to seek abolition of the Panel pursuant to Section
31H-115 of this Code may: (1) spend surplus district funds in an
4amount sufficient to liquidate the outstanding obligations of
5the Financial Oversight Panel or (2) issue funding bonds for
6such purpose as authorized by Sections 19-8 and 19-9 of this
7Code.
 
8    (105 ILCS 5/17-1)  (from Ch. 122, par. 17-1)
9    Sec. 17-1. Annual Budget. The board of education of each
10school district under 500,000 inhabitants shall, within or
11before the first quarter of each fiscal year, adopt and file
12with the State Board of Education an annual balanced budget
13which it deems necessary to defray all necessary expenses and
14liabilities of the district, and in such annual budget shall
15specify the objects and purposes of each item and amount needed
16for each object or purpose.
17    The budget shall be entered upon a School District Budget
18form prepared and provided by the State Board of Education and
19therein shall contain a statement of the cash on hand at the
20beginning of the fiscal year, an estimate of the cash expected
21to be received during such fiscal year from all sources, an
22estimate of the expenditures contemplated for such fiscal year,
23and a statement of the estimated cash expected to be on hand at
24the end of such year. The estimate of taxes to be received may
25be based upon the amount of actual cash receipts that may

 

 

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1reasonably be expected by the district during such fiscal year,
2estimated from the experience of the district in prior years
3and with due regard for other circumstances that may
4substantially affect such receipts. Nothing in this Section
5shall be construed as requiring any district to change or
6preventing any district from changing from a cash basis of
7financing to a surplus or deficit basis of financing; or as
8requiring any district to change or preventing any district
9from changing its system of accounting.
10    To the extent that a school district's budget is not
11balanced, the district shall also adopt and file with the State
12Board of Education a deficit reduction plan to balance the
13district's budget within 3 years. The deficit reduction plan
14must be filed at the same time as the budget, but the State
15Superintendent of Education may extend this deadline if the
16situation warrants.
17    If, as the result of an audit performed in compliance with
18Section 3-7 of this Code, the resulting Annual Financial Report
19required to be submitted pursuant to Section 3-15.1 of this
20Code reflects a deficit as defined for purposes of the
21preceding paragraph, then the district shall, within 30 days
22after acceptance of such audit report, submit a deficit
23reduction plan.
24    The board of education of each district shall fix a fiscal
25year therefor. If the beginning of the fiscal year of a
26district is subsequent to the time that the tax levy due to be

 

 

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1made in such fiscal year shall be made, then such annual budget
2shall be adopted prior to the time such tax levy shall be made.
3The failure by a board of education of any district to adopt an
4annual budget, or to comply in any respect with the provisions
5of this Section, shall not affect the validity of any tax levy
6of the district otherwise in conformity with the law. With
7respect to taxes levied either before, on, or after the
8effective date of this amendatory Act of the 91st General
9Assembly, (i) a tax levy is made for the fiscal year in which
10the levy is due to be made regardless of which fiscal year the
11proceeds of the levy are expended or are intended to be
12expended, and (ii) except as otherwise provided by law, a board
13of education's adoption of an annual budget in conformity with
14this Section is not a prerequisite to the adoption of a valid
15tax levy and is not a limit on the amount of the levy.
16    Such budget shall be prepared in tentative form by some
17person or persons designated by the board, and in such
18tentative form shall be made conveniently available to public
19inspection for at least 30 days prior to final action thereon.
20At least 1 public hearing shall be held as to such budget prior
21to final action thereon. Notice of availability for public
22inspection and of such public hearing shall be given by
23publication in a newspaper published in such district, at least
2430 days prior to the time of such hearing. If there is no
25newspaper published in such district, notice of such public
26hearing shall be given by posting notices thereof in 5 of the

 

 

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1most public places in such district. It shall be the duty of
2the secretary of such board to make such tentative budget
3available to public inspection, and to arrange for such public
4hearing. The board may from time to time make transfers between
5the various items in any fund not exceeding in the aggregate
610% of the total of such fund as set forth in the budget. The
7board may from time to time amend such budget by the same
8procedure as is herein provided for its original adoption.
9    Beginning July 1, 1976, the board of education, or regional
10superintendent, or governing board responsible for the
11administration of a joint agreement shall, by September 1 of
12each fiscal year thereafter, adopt an annual budget for the
13joint agreement in the same manner and subject to the same
14requirements as are provided in this Section.
15    The State Board of Education shall exercise powers and
16duties relating to budgets as provided in Section 2-3.27 of
17this Code and shall require school districts to submit their
18annual budgets, deficit reduction plans, and other financial
19information, including revenue and expenditure reports and
20borrowing and interfund transfer plans, in such form and within
21the timelines designated by the State Board of Education.
22    By fiscal year 1982 all school districts shall use the
23Program Budget Accounting System.
24    In the case of a school district receiving emergency State
25financial assistance under Article 1B, the school board shall
26also be subject to the requirements established under Article

 

 

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11B with respect to the annual budget.
2(Source: P.A. 94-234, eff. 7-1-06.)
 
3    (105 ILCS 5/17-11)  (from Ch. 122, par. 17-11)
4    Sec. 17-11. Certificate of tax levy.
5    (a) The school board of each district, other than a school
6district subject to the authority of a Financial Oversight
7Panel pursuant to Article 1H of this Code, shall ascertain, as
8near as practicable, annually, how much money must be raised by
9special tax for transportation purposes if any and for
10educational and for operations and maintenance purposes for the
11next ensuing year. In school districts with a population of
12less than 500,000, these amounts shall be certified and
13returned to each county clerk on or before the last Tuesday in
14December, annually. The certificate shall be signed by the
15president and clerk or secretary, and may be in the following
16form:
17
CERTIFICATE OF TAX LEVY
18    We hereby certify that we require the sum of ......
19dollars, to be levied as a special tax for transportation
20purposes and the sum of ...... dollars to be levied as a
21special tax for educational purposes, and the sum ......
22dollars to be levied as a special tax for operations and
23maintenance purposes, and the sum of ...... to be levied as a
24special tax for a working cash fund, on the equalized assessed
25value of the taxable property of our district, for the year

 

 

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1(insert year).
2    Signed on (insert date).
3    A ........... B ............., President
4    C ........... D............., Clerk (Secretary)
5    Dist. No. .........., ............ County
 
6    (b) A failure by the school board to file the certificate
7with the county clerk in the time required shall not vitiate
8the assessment.
9    (c) A school district subject to the authority of a
10Financial Oversight Panel pursuant to Article 1H of this Code
11shall file a certificate of tax levy as otherwise provided by
12this Section, except that such certificate shall be certified
13and returned to each county clerk on or before the first
14Tuesday in November annually. If, for whatever reason, the
15district fails to certify and return the certificate of tax
16levy to each county clerk on or before the first Tuesday in
17November annually, then the Financial Oversight Panel for such
18school district shall proceed to adopt, certify, and return a
19certificate of tax levy for such school district to each county
20clerk on or before the last Tuesday in December annually.
21(Source: P.A. 91-357, eff. 7-29-99.)
 
22    (105 ILCS 5/19-8)   (from Ch. 122, par. 19-8)
23    Sec. 19-8. Bonds to pay claims. Any school district or
24non-high district operating under general law or special

 

 

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1charter having a population of 500,000 or less is authorized to
2issue bonds for the purpose of paying orders issued for the
3wages of teachers, or for the payment of claims against any
4such district, or for providing funds to effect liquidation or
5defeasance of the obligations of a Financial Oversight Panel
6pursuant to the provisions of Section 1H-115 of this Code.
7    Such bonds may be issued in an amount, including existing
8indebtedness, in excess of any statutory limitation as to debt.
9(Source: P.A. 94-234, eff. 7-1-06.)
 
10    (105 ILCS 5/19-9)  (from Ch. 122, par. 19-9)
11    Sec. 19-9. Resolution to issue bonds - Submission to
12voters. Before any district as described in Section 19-8 shall
13avail itself of the provisions of that section the governing
14body thereof shall examine and consider the several teachers'
15orders or claims or liabilities of a Financial Oversight Panel
16established pursuant to Article 1H of this Code, or any or all
17of these, or both, proposed to be paid and if it appears that
18they were authorized and allowed for proper school purposes it
19shall adopt a resolution so declaring and set forth and
20describe in detail such teachers' orders and claims and
21liabilities of a Financial Oversight Panel established
22pursuant to Article 1H of this Code and the adoption of the
23resolution shall establish the validity thereof,
24notwithstanding the amount of such orders and claims and
25liabilities of a Financial Oversight Panel established

 

 

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1pursuant to Article 1H of this Code may exceed in whole or in
2part any applicable statutory debt limit in force at the time
3the indebtedness evidenced by such orders and claims and
4liabilities of a Financial Oversight Panel established
5pursuant to Article 1H of this Code was incurred. The
6resolution shall also declare the intention of the district to
7issue bonds for the purpose of paying such teachers' orders or
8claims or liabilities of a Financial Oversight Panel
9established pursuant to Article 1H of this Code, or both, and
10direct that notice of such intention be published at least once
11in a newspaper published within the district and if there be no
12newspaper published within the district then notice shall be
13published in a newspaper having general circulation within the
14district. The notice shall set forth (1) the time within which
15a petition may be filed requesting the submission of the
16proposition to issue the bonds as hereinafter in this Section
17provided; (2) the specific number of voters required to sign
18the petition; and the date of the prospective referendum. The
19recording officer of the district shall provide a petition form
20to any individual requesting one. If within 30 days after such
21publication of such notice a petition is filed with the
22recording officer of the district, signed by the voters of the
23district equal to 10% or more of the registered voters of the
24district requesting that the proposition to issue bonds as
25authorized by Section 19-8 be submitted to the voters thereof,
26then the district shall not be authorized to issue bonds as

 

 

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1provided by Section 19-8 until the proposition has been
2submitted to and approved by a majority of the voters voting on
3the proposition at a regular scheduled election. The board
4shall certify the proposition to the proper election
5authorities for submission in accordance with the general
6election law. If no such petition with the requisite number of
7signatures is filed within said 30 days, or if any and all
8petitions filed are invalid, then the district shall thereafter
9be authorized to issue bonds for the purposes and as provided
10in Section 19-8.
11(Source: P.A. 87-767.)
 
12    Section 20. The Illinois Educational Labor Relations Act is
13amended by changing Section 2 as follows:
 
14    (115 ILCS 5/2)  (from Ch. 48, par. 1702)
15    Sec. 2. Definitions. As used in this Act:
16    (a) "Educational employer" or "employer" means the
17governing body of a public school district, including the
18governing body of a charter school established under Article
1927A of the School Code or of a contract school or contract
20turnaround school established under paragraph 30 of Section
2134-18 of the School Code, combination of public school
22districts, including the governing body of joint agreements of
23any type formed by 2 or more school districts, public community
24college district or State college or university, a

 

 

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1subcontractor of instructional services of a school district
2(other than a school district organized under Article 34 of the
3School Code), combination of school districts, charter school
4established under Article 27A of the School Code, or contract
5school or contract turnaround school established under
6paragraph 30 of Section 34-18 of the School Code, and any State
7agency whose major function is providing educational services.
8"Educational employer" or "employer" does not include (1) a
9Financial Oversight Panel created pursuant to Section 1A-8 of
10the School Code due to a district violating a financial plan or
11(2) an approved nonpublic special education facility that
12contracts with a school district or combination of school
13districts to provide special education services pursuant to
14Section 14-7.02 of the School Code, but does include a School
15Finance Authority created under Article 1E or 1F of the School
16Code and a Financial Oversight Panel created under Article 1B
17or 1H of the School Code. The change made by this amendatory
18Act of the 96th General Assembly to this paragraph (a) to make
19clear that the governing body of a charter school is an
20"educational employer" is declaratory of existing law.
21    (b) "Educational employee" or "employee" means any
22individual, excluding supervisors, managerial, confidential,
23short term employees, student, and part-time academic
24employees of community colleges employed full or part time by
25an educational employer, but shall not include elected
26officials and appointees of the Governor with the advice and

 

 

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1consent of the Senate, firefighters as defined by subsection
2(g-1) of Section 3 of the Illinois Public Labor Relations Act,
3and peace officers employed by a State university. For the
4purposes of this Act, part-time academic employees of community
5colleges shall be defined as those employees who provide less
6than 3 credit hours of instruction per academic semester. In
7this subsection (b), the term "student" includes graduate
8students who are research assistants primarily performing
9duties that involve research or graduate assistants primarily
10performing duties that are pre-professional, but excludes
11graduate students who are teaching assistants primarily
12performing duties that involve the delivery and support of
13instruction and all other graduate assistants.
14    (c) "Employee organization" or "labor organization" means
15an organization of any kind in which membership includes
16educational employees, and which exists for the purpose, in
17whole or in part, of dealing with employers concerning
18grievances, employee-employer disputes, wages, rates of pay,
19hours of employment, or conditions of work, but shall not
20include any organization which practices discrimination in
21membership because of race, color, creed, age, gender, national
22origin or political affiliation.
23    (d) "Exclusive representative" means the labor
24organization which has been designated by the Illinois
25Educational Labor Relations Board as the representative of the
26majority of educational employees in an appropriate unit, or

 

 

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1recognized by an educational employer prior to January 1, 1984
2as the exclusive representative of the employees in an
3appropriate unit or, after January 1, 1984, recognized by an
4employer upon evidence that the employee organization has been
5designated as the exclusive representative by a majority of the
6employees in an appropriate unit.
7    (e) "Board" means the Illinois Educational Labor Relations
8Board.
9    (f) "Regional Superintendent" means the regional
10superintendent of schools provided for in Articles 3 and 3A of
11The School Code.
12    (g) "Supervisor" means any individual having authority in
13the interests of the employer to hire, transfer, suspend, lay
14off, recall, promote, discharge, reward or discipline other
15employees within the appropriate bargaining unit and adjust
16their grievances, or to effectively recommend such action if
17the exercise of such authority is not of a merely routine or
18clerical nature but requires the use of independent judgment.
19The term "supervisor" includes only those individuals who
20devote a preponderance of their employment time to such
21exercising authority.
22    (h) "Unfair labor practice" or "unfair practice" means any
23practice prohibited by Section 14 of this Act.
24    (i) "Person" includes an individual, educational employee,
25educational employer, legal representative, or employee
26organization.

 

 

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1    (j) "Wages" means salaries or other forms of compensation
2for services rendered.
3    (k) "Professional employee" means, in the case of a public
4community college, State college or university, State agency
5whose major function is providing educational services, the
6Illinois School for the Deaf, and the Illinois School for the
7Visually Impaired, (1) any employee engaged in work (i)
8predominantly intellectual and varied in character as opposed
9to routine mental, manual, mechanical, or physical work; (ii)
10involving the consistent exercise of discretion and judgment in
11its performance; (iii) of such character that the output
12produced or the result accomplished cannot be standardized in
13relation to a given period of time; and (iv) requiring
14knowledge of an advanced type in a field of science or learning
15customarily acquired by a prolonged course of specialized
16intellectual instruction and study in an institution of higher
17learning or a hospital, as distinguished from a general
18academic education or from an apprenticeship or from training
19in the performance of routine mental, manual, or physical
20processes; or (2) any employee, who (i) has completed the
21courses of specialized intellectual instruction and study
22described in clause (iv) of paragraph (1) of this subsection,
23and (ii) is performing related work under the supervision of a
24professional person to qualify himself or herself to become a
25professional as defined in paragraph (l).
26    (l) "Professional employee" means, in the case of any

 

 

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1public school district, or combination of school districts
2pursuant to joint agreement, any employee who has a certificate
3issued under Article 21 or Section 34-83 of the School Code, as
4now or hereafter amended.
5    (m) "Unit" or "bargaining unit" means any group of
6employees for which an exclusive representative is selected.
7    (n) "Confidential employee" means an employee, who (i) in
8the regular course of his or her duties, assists and acts in a
9confidential capacity to persons who formulate, determine and
10effectuate management policies with regard to labor relations
11or who (ii) in the regular course of his or her duties has
12access to information relating to the effectuation or review of
13the employer's collective bargaining policies.
14    (o) "Managerial employee" means an individual who is
15engaged predominantly in executive and management functions
16and is charged with the responsibility of directing the
17effectuation of such management policies and practices.
18    (p) "Craft employee" means a skilled journeyman, craft
19person, and his or her apprentice or helper.
20    (q) "Short-term employee" is an employee who is employed
21for less than 2 consecutive calendar quarters during a calendar
22year and who does not have a reasonable expectation that he or
23she will be rehired by the same employer for the same service
24in a subsequent calendar year. Nothing in this subsection shall
25affect the employee status of individuals who were covered by a
26collective bargaining agreement on the effective date of this

 

 

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1amendatory Act of 1991.
2(Source: P.A. 95-331, eff. 8-21-07; 96-104, eff. 1-1-10.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.