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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the Better
5Funding for Better Schools Act.
 
6    Section 905. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and
16certified the economic development project area, each year
17after the date of the certification by the county clerk of the
18"total initial equalized assessed value" until economic
19development project costs and all municipal obligations
20financing economic development project costs have been paid,
21the ad valorem taxes, if any, arising from the levies upon the
22taxable real property in the economic development project area

 

 

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1by taxing districts and tax rates determined in the manner
2provided in subsection (b) of Section 6 of this Act shall be
3divided as follows:
4    (1) That portion of the taxes levied upon each taxable lot,
5block, tract or parcel of real property which is attributable
6to the lower of the current equalized assessed value or the
7initial equalized assessed value of each such taxable lot,
8block, tract, or parcel of real property existing at the time
9tax increment allocation financing was adopted, shall be
10allocated to and when collected shall be paid by the county
11collector to the respective affected taxing districts in the
12manner required by law in the absence of the adoption of tax
13increment allocation financing.
14    (2) That portion, if any, of those taxes which is
15attributable to the increase in the current equalized assessed
16valuation of each taxable lot, block, tract, or parcel of real
17property in the economic development project area, over and
18above the initial equalized assessed value of each property
19existing at the time tax increment allocation financing was
20adopted, shall be allocated to and when collected shall be paid
21to the municipal treasurer, who shall deposit those taxes into
22a special fund called the special tax allocation fund of the
23municipality for the purpose of paying economic development
24project costs and obligations incurred in the payment thereof.
25    The municipality, by an ordinance adopting tax increment
26allocation financing, may pledge the funds in and to be

 

 

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

 

 

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1ordinance dissolving the special tax allocation fund for the
2economic development project area, terminating the economic
3development project area, and terminating the use of tax
4increment allocation financing for the economic development
5project area. Thereafter the rates of the taxing districts
6shall be extended and taxes levied, collected and distributed
7in the manner applicable in the absence of the adoption of tax
8increment allocation financing.
9    Nothing in this Section shall be construed as relieving
10property in economic development project areas from being
11assessed as provided in the Property Tax Code, or as relieving
12owners of that property from paying a uniform rate of taxes, as
13required by Section 4 of Article IX of the Illinois
14Constitution.
15(Source: P.A. 98-463, eff. 8-16-13.)
 
16    Section 910. The State Finance Act is amended by changing
17Section 13.2 as follows:
 
18    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
19    Sec. 13.2. Transfers among line item appropriations.
20    (a) Transfers among line item appropriations from the same
21treasury fund for the objects specified in this Section may be
22made in the manner provided in this Section when the balance
23remaining in one or more such line item appropriations is
24insufficient for the purpose for which the appropriation was

 

 

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1made.
2    (a-1) No transfers may be made from one agency to another
3agency, nor may transfers be made from one institution of
4higher education to another institution of higher education
5except as provided by subsection (a-4).
6    (a-2) Except as otherwise provided in this Section,
7transfers may be made only among the objects of expenditure
8enumerated in this Section, except that no funds may be
9transferred from any appropriation for personal services, from
10any appropriation for State contributions to the State
11Employees' Retirement System, from any separate appropriation
12for employee retirement contributions paid by the employer, nor
13from any appropriation for State contribution for employee
14group insurance. During State fiscal year 2005, an agency may
15transfer amounts among its appropriations within the same
16treasury fund for personal services, employee retirement
17contributions paid by employer, and State Contributions to
18retirement systems; notwithstanding and in addition to the
19transfers authorized in subsection (c) of this Section, the
20fiscal year 2005 transfers authorized in this sentence may be
21made in an amount not to exceed 2% of the aggregate amount
22appropriated to an agency within the same treasury fund. During
23State fiscal year 2007, the Departments of Children and Family
24Services, Corrections, Human Services, and Juvenile Justice
25may transfer amounts among their respective appropriations
26within the same treasury fund for personal services, employee

 

 

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1retirement contributions paid by employer, and State
2contributions to retirement systems. During State fiscal year
32010, the Department of Transportation may transfer amounts
4among their respective appropriations within the same treasury
5fund for personal services, employee retirement contributions
6paid by employer, and State contributions to retirement
7systems. During State fiscal years 2010 and 2014 only, an
8agency may transfer amounts among its respective
9appropriations within the same treasury fund for personal
10services, employee retirement contributions paid by employer,
11and State contributions to retirement systems.
12Notwithstanding, and in addition to, the transfers authorized
13in subsection (c) of this Section, these transfers may be made
14in an amount not to exceed 2% of the aggregate amount
15appropriated to an agency within the same treasury fund.
16    (a-2.5) During State fiscal year 2015 only, the State's
17Attorneys Appellate Prosecutor may transfer amounts among its
18respective appropriations contained in operational line items
19within the same treasury fund. Notwithstanding, and in addition
20to, the transfers authorized in subsection (c) of this Section,
21these transfers may be made in an amount not to exceed 4% of
22the aggregate amount appropriated to the State's Attorneys
23Appellate Prosecutor within the same treasury fund.
24    (a-3) Further, if an agency receives a separate
25appropriation for employee retirement contributions paid by
26the employer, any transfer by that agency into an appropriation

 

 

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

 

 

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

 

 

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1Coordination.
2    The State Treasurer is authorized to make transfers among
3line item appropriations from the Capital Litigation Trust
4Fund, with respect to costs incurred in fiscal years 2002 and
52003 only, when the balance remaining in one or more such line
6item appropriations is insufficient for the purpose for which
7the appropriation was made, provided that no such transfer may
8be made unless the amount transferred is no longer required for
9the purpose for which that appropriation was made.
10    The State Board of Education is authorized to make
11transfers from line item appropriations within the same
12treasury fund for General State Aid, and General State Aid -
13Hold Harmless, Primary State Aid, and Hold Harmless State
14Funding, provided that no such transfer may be made unless the
15amount transferred is no longer required for the purpose for
16which that appropriation was made, to the line item
17appropriation for Transitional Assistance when the balance
18remaining in such line item appropriation is insufficient for
19the purpose for which the appropriation was made.
20    The State Board of Education is authorized to make
21transfers between the following line item appropriations
22within the same treasury fund: Disabled Student
23Services/Materials (Section 14-13.01 of the School Code),
24Disabled Student Transportation Reimbursement (Section
2514-13.01 of the School Code), Disabled Student Tuition -
26Private Tuition (Section 14-7.02 of the School Code),

 

 

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1Extraordinary Special Education (Section 14-7.02b of the
2School Code), Reimbursement for Free Lunch/Breakfast Program,
3Summer School Payments (Section 18-4.3 of the School Code), and
4Transportation - Regular/Vocational Reimbursement (Section
529-5 of the School Code). Such transfers shall be made only
6when the balance remaining in one or more such line item
7appropriations is insufficient for the purpose for which the
8appropriation was made and provided that no such transfer may
9be made unless the amount transferred is no longer required for
10the purpose for which that appropriation was made.
11    The Department of Healthcare and Family Services is
12authorized to make transfers not exceeding 4% of the aggregate
13amount appropriated to it, within the same treasury fund, among
14the various line items appropriated for Medical Assistance.
15    (c) The sum of such transfers for an agency in a fiscal
16year shall not exceed 2% of the aggregate amount appropriated
17to it within the same treasury fund for the following objects:
18Personal Services; Extra Help; Student and Inmate
19Compensation; State Contributions to Retirement Systems; State
20Contributions to Social Security; State Contribution for
21Employee Group Insurance; Contractual Services; Travel;
22Commodities; Printing; Equipment; Electronic Data Processing;
23Operation of Automotive Equipment; Telecommunications
24Services; Travel and Allowance for Committed, Paroled and
25Discharged Prisoners; Library Books; Federal Matching Grants
26for Student Loans; Refunds; Workers' Compensation,

 

 

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1Occupational Disease, and Tort Claims; and, in appropriations
2to institutions of higher education, Awards and Grants.
3Notwithstanding the above, any amounts appropriated for
4payment of workers' compensation claims to an agency to which
5the authority to evaluate, administer and pay such claims has
6been delegated by the Department of Central Management Services
7may be transferred to any other expenditure object where such
8amounts exceed the amount necessary for the payment of such
9claims.
10    (c-1) Special provisions for State fiscal year 2003.
11Notwithstanding any other provision of this Section to the
12contrary, for State fiscal year 2003 only, transfers among line
13item appropriations to an agency from the same treasury fund
14may be made provided that the sum of such transfers for an
15agency in State fiscal year 2003 shall not exceed 3% of the
16aggregate amount appropriated to that State agency for State
17fiscal year 2003 for the following objects: personal services,
18except that no transfer may be approved which reduces the
19aggregate appropriations for personal services within an
20agency; extra help; student and inmate compensation; State
21contributions to retirement systems; State contributions to
22social security; State contributions for employee group
23insurance; contractual services; travel; commodities;
24printing; equipment; electronic data processing; operation of
25automotive equipment; telecommunications services; travel and
26allowance for committed, paroled, and discharged prisoners;

 

 

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1library books; federal matching grants for student loans;
2refunds; workers' compensation, occupational disease, and tort
3claims; and, in appropriations to institutions of higher
4education, awards and grants.
5    (c-2) Special provisions for State fiscal year 2005.
6Notwithstanding subsections (a), (a-2), and (c), for State
7fiscal year 2005 only, transfers may be made among any line
8item appropriations from the same or any other treasury fund
9for any objects or purposes, without limitation, when the
10balance remaining in one or more such line item appropriations
11is insufficient for the purpose for which the appropriation was
12made, provided that the sum of those transfers by a State
13agency shall not exceed 4% of the aggregate amount appropriated
14to that State agency for fiscal year 2005.
15    (c-3) Special provisions for State fiscal year 2015.
16Notwithstanding any other provision of this Section, for State
17fiscal year 2015, transfers among line item appropriations to a
18State agency from the same State treasury fund may be made for
19operational or lump sum expenses only, provided that the sum of
20such transfers for a State agency in State fiscal year 2015
21shall not exceed 4% of the aggregate amount appropriated to
22that State agency for operational or lump sum expenses for
23State fiscal year 2015. For the purpose of this subsection,
24"operational or lump sum expenses" includes the following
25objects: personal services; extra help; student and inmate
26compensation; State contributions to retirement systems; State

 

 

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

 

 

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1    The officer responsible for approval shall certify that the
2transfer is necessary to carry out the programs and purposes
3for which the appropriations were made by the General Assembly
4and shall transmit to the State Comptroller a certified copy of
5the approval which shall set forth the specific amounts
6transferred so that the Comptroller may change his records
7accordingly. The Comptroller shall furnish the Governor with
8information copies of all transfers approved for agencies of
9the Legislative and Judicial departments and transfers
10approved by the constitutionally elected officials of the
11Executive branch other than the Governor, showing the amounts
12transferred and indicating the dates such changes were entered
13on the Comptroller's records.
14    (e) The State Board of Education, in consultation with the
15State Comptroller, may transfer line item appropriations for
16General State Aid or Primary State Aid between the Common
17School Fund and the Education Assistance Fund. With the advice
18and consent of the Governor's Office of Management and Budget,
19the State Board of Education, in consultation with the State
20Comptroller, may transfer line item appropriations between the
21General Revenue Fund and the Education Assistance Fund for the
22following programs:
23        (1) Disabled Student Personnel Reimbursement (Section
24    14-13.01 of the School Code);
25        (2) Disabled Student Transportation Reimbursement
26    (subsection (b) of Section 14-13.01 of the School Code);

 

 

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1        (3) Disabled Student Tuition - Private Tuition
2    (Section 14-7.02 of the School Code);
3        (4) Extraordinary Special Education (Section 14-7.02b
4    of the School Code);
5        (5) Reimbursement for Free Lunch/Breakfast Programs;
6        (6) Summer School Payments (Section 18-4.3 of the
7    School Code);
8        (7) Transportation - Regular/Vocational Reimbursement
9    (Section 29-5 of the School Code);
10        (8) Regular Education Reimbursement (Section 18-3 of
11    the School Code); and
12        (9) Special Education Reimbursement (Section 14-7.03
13    of the School Code).
14(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
15eff. 3-26-15.)
 
16    Section 915. The Property Tax Code is amended by changing
17Sections 18-200 and 18-249 as follows:
 
18    (35 ILCS 200/18-200)
19    Sec. 18-200. School Code. A school district's State aid
20shall not be reduced under the computation under subsections
215(a) through 5(h) of Part A of Section 18-8 of the School Code
22or under subsection (e) of Section 18-8.15 of the School Code
23due to the operating tax rate falling from above the minimum
24requirement of that Section of the School Code to below the

 

 

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1minimum requirement of that Section of the School Code due to
2the operation of this Law.
3(Source: P.A. 87-17; 88-455.)
 
4    (35 ILCS 200/18-249)
5    Sec. 18-249. Miscellaneous provisions.
6    (a) Certification of new property. For the 1994 levy year,
7the chief county assessment officer shall certify to the county
8clerk, after all changes by the board of review or board of
9appeals, as the case may be, the assessed value of new property
10by taxing district for the 1994 levy year under rules
11promulgated by the Department.
12    (b) School Code. A school district's State aid shall not be
13reduced under the computation under subsections 5(a) through
145(h) of Part A of Section 18-8 of the School Code or under
15subsection (e) of Section 18-8.15 of the School Code due to the
16operating tax rate falling from above the minimum requirement
17of that Section of the School Code to below the minimum
18requirement of that Section of the School Code due to the
19operation of this Law.
20    (c) Rules. The Department shall make and promulgate
21reasonable rules relating to the administration of the purposes
22and provisions of Sections 18-246 through 18-249 as may be
23necessary or appropriate.
24(Source: P.A. 89-1, eff. 2-12-95.)
 

 

 

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1    Section 917. The Illinois Pension Code is amended by
2changing Sections 16-158 and 17-127 as follows:
 
3    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
4    (Text of Section WITH the changes made by P.A. 98-599,
5which has been held unconstitutional)
6    Sec. 16-158. Contributions by State and other employing
7units.
8    (a) The State shall make contributions to the System by
9means of appropriations from the Common School Fund and other
10State funds of amounts which, together with other employer
11contributions, employee contributions, investment income, and
12other income, will be sufficient to meet the cost of
13maintaining and administering the System on a 100% funded basis
14in accordance with actuarial recommendations by the end of
15State fiscal year 2044.
16    The Board shall determine the amount of State contributions
17required for each fiscal year on the basis of the actuarial
18tables and other assumptions adopted by the Board and the
19recommendations of the actuary, using the formula in subsection
20(b-3).
21    (a-1) Annually, on or before November 15 through November
2215, 2011, the Board shall certify to the Governor the amount of
23the required State contribution for the coming fiscal year. The
24certification under this subsection (a-1) shall include a copy
25of the actuarial recommendations upon which it is based.

 

 

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1    On or before May 1, 2004, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2005, taking
4into account the amounts appropriated to and received by the
5System under subsection (d) of Section 7.2 of the General
6Obligation Bond Act.
7    On or before July 1, 2005, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2006, taking
10into account the changes in required State contributions made
11by this amendatory Act of the 94th General Assembly.
12    On or before April 1, 2011, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2011, applying
15the changes made by Public Act 96-889 to the System's assets
16and liabilities as of June 30, 2009 as though Public Act 96-889
17was approved on that date.
18    (a-5) On or before November 1 of each year, beginning
19November 1, 2012, the Board shall submit to the State Actuary,
20the Governor, and the General Assembly a proposed certification
21of the amount of the required State contribution to the System
22for the next fiscal year, along with all of the actuarial
23assumptions, calculations, and data upon which that proposed
24certification is based. On or before January 1 of each year,
25beginning January 1, 2013, the State Actuary shall issue a
26preliminary report concerning the proposed certification and

 

 

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1identifying, if necessary, recommended changes in actuarial
2assumptions that the Board must consider before finalizing its
3certification of the required State contributions.
4    On or before January 15, 2013 and each January 15
5thereafter, the Board shall certify to the Governor and the
6General Assembly the amount of the required State contribution
7for the next fiscal year. The certification shall include a
8copy of the actuarial recommendations upon which it is based
9and shall specifically identify the System's projected State
10normal cost for that fiscal year. The Board's certification
11must note any deviations from the State Actuary's recommended
12changes, the reason or reasons for not following the State
13Actuary's recommended changes, and the fiscal impact of not
14following the State Actuary's recommended changes on the
15required State contribution.
16    (a-10) For purposes of Section (c-5) of Section 20 of the
17Budget Stabilization Act, on or before November 1 of each year
18beginning November 1, 2014, the Board shall determine the
19amount of the State contribution to the System that would have
20been required for the next fiscal year if this amendatory Act
21of the 98th General Assembly had not taken effect, using the
22best and most recent available data but based on the law in
23effect on May 31, 2014. The Board shall submit to the State
24Actuary, the Governor, and the General Assembly a proposed
25certification, along with the relevant law, actuarial
26assumptions, calculations, and data upon which that

 

 

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1certification is based. On or before January 1, 2015 and every
2January 1 thereafter, the State Actuary shall issue a
3preliminary report concerning the proposed certification and
4identifying, if necessary, recommended changes in actuarial
5assumptions that the Board must consider before finalizing its
6certification. On or before January 15, 2015 and every January
71 thereafter, the Board shall certify to the Governor and the
8General Assembly the amount of the State contribution to the
9System that would have been required for the next fiscal year
10if this amendatory Act of the 98th General Assembly had not
11taken effect, using the best and most recent available data but
12based on the law in effect on May 31, 2014. The Board's
13certification must note any deviations from the State Actuary's
14recommended changes, the reason or reasons for not following
15the State Actuary's recommended changes, and the impact of not
16following the State Actuary's recommended changes.
17    (b) Through State fiscal year 1995, the State contributions
18shall be paid to the System in accordance with Section 18-7 of
19the School Code.
20    (b-1) Beginning in State fiscal year 1996, on the 15th day
21of each month, or as soon thereafter as may be practicable, the
22Board shall submit vouchers for payment of State contributions
23to the System, in a total monthly amount of one-twelfth of the
24required annual State contribution certified under subsection
25(a-1). From the effective date of this amendatory Act of the
2693rd General Assembly through June 30, 2004, the Board shall

 

 

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1not submit vouchers for the remainder of fiscal year 2004 in
2excess of the fiscal year 2004 certified contribution amount
3determined under this Section after taking into consideration
4the transfer to the System under subsection (a) of Section
56z-61 of the State Finance Act. These vouchers shall be paid by
6the State Comptroller and Treasurer by warrants drawn on the
7funds appropriated to the System for that fiscal year.
8    If in any month the amount remaining unexpended from all
9other appropriations to the System for the applicable fiscal
10year (including the appropriations to the System under Section
118.12 of the State Finance Act and Section 1 of the State
12Pension Funds Continuing Appropriation Act) is less than the
13amount lawfully vouchered under this subsection, the
14difference shall be paid from the Common School Fund under the
15continuing appropriation authority provided in Section 1.1 of
16the State Pension Funds Continuing Appropriation Act.
17    (b-2) Allocations from the Common School Fund apportioned
18to school districts not coming under this System shall not be
19diminished or affected by the provisions of this Article.
20    (b-3) For State fiscal years 2015 through 2044, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23equal to the sum of (1) the State's portion of the projected
24normal cost for that fiscal year, plus (2) an amount sufficient
25to bring the total assets of the System up to 100% of the total
26actuarial liabilities of the System by the end of State fiscal

 

 

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1year 2044. In making these determinations, the required State
2contribution shall be calculated each year as a level
3percentage of payroll over the years remaining to and including
4fiscal year 2044 and shall be determined under the projected
5unit cost method for fiscal year 2015 and under the entry age
6normal actuarial cost method for fiscal years 2016 through
72044.
8    For State fiscal years 2012 through 2014, the minimum
9contribution to the System to be made by the State for each
10fiscal year shall be an amount determined by the System to be
11sufficient to bring the total assets of the System up to 90% of
12the total actuarial liabilities of the System by the end of
13State fiscal year 2045. In making these determinations, the
14required State contribution shall be calculated each year as a
15level percentage of payroll over the years remaining to and
16including fiscal year 2045 and shall be determined under the
17projected unit credit actuarial cost method.
18    For State fiscal years 1996 through 2005, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21so that by State fiscal year 2011, the State is contributing at
22the rate required under this Section; except that in the
23following specified State fiscal years, the State contribution
24to the System shall not be less than the following indicated
25percentages of the applicable employee payroll, even if the
26indicated percentage will produce a State contribution in

 

 

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1excess of the amount otherwise required under this subsection
2and subsection (a), and notwithstanding any contrary
3certification made under subsection (a-1) before the effective
4date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
5in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
62003; and 13.56% in FY 2004.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2006 is
9$534,627,700.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2007 is
12$738,014,500.
13    For each of State fiscal years 2008 through 2009, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16from the required State contribution for State fiscal year
172007, so that by State fiscal year 2011, the State is
18contributing at the rate otherwise required under this Section.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2010 is
21$2,089,268,000 and shall be made from the proceeds of bonds
22sold in fiscal year 2010 pursuant to Section 7.2 of the General
23Obligation Bond Act, less (i) the pro rata share of bond sale
24expenses determined by the System's share of total bond
25proceeds, (ii) any amounts received from the Common School Fund
26in fiscal year 2010, and (iii) any reduction in bond proceeds

 

 

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1due to the issuance of discounted bonds, if applicable.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2011 is
4the amount recertified by the System on or before April 1, 2011
5pursuant to subsection (a-1) of this Section and shall be made
6from the proceeds of bonds sold in fiscal year 2011 pursuant to
7Section 7.2 of the General Obligation Bond Act, less (i) the
8pro rata share of bond sale expenses determined by the System's
9share of total bond proceeds, (ii) any amounts received from
10the Common School Fund in fiscal year 2011, and (iii) any
11reduction in bond proceeds due to the issuance of discounted
12bonds, if applicable. This amount shall include, in addition to
13the amount certified by the System, an amount necessary to meet
14employer contributions required by the State as an employer
15under paragraph (e) of this Section, which may also be used by
16the System for contributions required by paragraph (a) of
17Section 16-127.
18    Beginning in State fiscal year 2045, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 100% of the total
21actuarial liabilities of the System.
22    Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

 

 

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1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 100%. A reference in this Article to
5the "required State contribution" or any substantially similar
6term does not include or apply to any amounts payable to the
7System under Section 25 of the Budget Stabilization Act.
8    Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter through State
11fiscal year 2014, as calculated under this Section and
12certified under subsection (a-1), shall not exceed an amount
13equal to (i) the amount of the required State contribution that
14would have been calculated under this Section for that fiscal
15year if the System had not received any payments under
16subsection (d) of Section 7.2 of the General Obligation Bond
17Act, minus (ii) the portion of the State's total debt service
18payments for that fiscal year on the bonds issued in fiscal
19year 2003 for the purposes of that Section 7.2, as determined
20and certified by the Comptroller, that is the same as the
21System's portion of the total moneys distributed under
22subsection (d) of Section 7.2 of the General Obligation Bond
23Act. In determining this maximum for State fiscal years 2008
24through 2010, however, the amount referred to in item (i) shall
25be increased, as a percentage of the applicable employee
26payroll, in equal increments calculated from the sum of the

 

 

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1required State contribution for State fiscal year 2007 plus the
2applicable portion of the State's total debt service payments
3for fiscal year 2007 on the bonds issued in fiscal year 2003
4for the purposes of Section 7.2 of the General Obligation Bond
5Act, so that, by State fiscal year 2011, the State is
6contributing at the rate otherwise required under this Section.
7    (c) Payment of the required State contributions and of all
8pensions, retirement annuities, death benefits, refunds, and
9other benefits granted under or assumed by this System, and all
10expenses in connection with the administration and operation
11thereof, are obligations of the State.
12    If members are paid from special trust or federal funds
13which are administered by the employing unit, whether school
14district or other unit, the employing unit shall pay to the
15System from such funds the full accruing retirement costs based
16upon that service, which, beginning July 1, 2016 2014, shall be
17at a rate, expressed as a percentage of salary, equal to the
18total employer's minimum contribution to the System to be made
19by the State for that fiscal year, including both normal cost
20and unfunded liability components, expressed as a percentage of
21payroll, as determined by the System under subsection (b-3) of
22this Section. Employer contributions, based on salary paid to
23members from federal funds, may be forwarded by the
24distributing agency of the State of Illinois to the System
25prior to allocation, in an amount determined in accordance with
26guidelines established by such agency and the System. Any

 

 

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1contribution for fiscal year 2015 collected as a result of the
2change made by this amendatory Act of the 98th General Assembly
3shall be considered a State contribution under subsection (b-3)
4of this Section.
5    (d) Effective July 1, 1986, any employer of a teacher as
6defined in paragraph (8) of Section 16-106 shall pay the
7employer's normal cost of benefits based upon the teacher's
8service, in addition to employee contributions, as determined
9by the System. Such employer contributions shall be forwarded
10monthly in accordance with guidelines established by the
11System.
12    However, with respect to benefits granted under Section
1316-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
14of Section 16-106, the employer's contribution shall be 12%
15(rather than 20%) of the member's highest annual salary rate
16for each year of creditable service granted, and the employer
17shall also pay the required employee contribution on behalf of
18the teacher. For the purposes of Sections 16-133.4 and
1916-133.5, a teacher as defined in paragraph (8) of Section
2016-106 who is serving in that capacity while on leave of
21absence from another employer under this Article shall not be
22considered an employee of the employer from which the teacher
23is on leave.
24    (e) Beginning July 1, 1998, every employer of a teacher
25shall pay to the System an employer contribution computed as
26follows:

 

 

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1        (1) Beginning July 1, 1998 through June 30, 1999, the
2    employer contribution shall be equal to 0.3% of each
3    teacher's salary.
4        (2) Beginning July 1, 1999 and thereafter, the employer
5    contribution shall be equal to 0.58% of each teacher's
6    salary.
7The school district or other employing unit may pay these
8employer contributions out of any source of funding available
9for that purpose and shall forward the contributions to the
10System on the schedule established for the payment of member
11contributions.
12    These employer contributions are intended to offset a
13portion of the cost to the System of the increases in
14retirement benefits resulting from this amendatory Act of 1998.
15    Each employer of teachers is entitled to a credit against
16the contributions required under this subsection (e) with
17respect to salaries paid to teachers for the period January 1,
182002 through June 30, 2003, equal to the amount paid by that
19employer under subsection (a-5) of Section 6.6 of the State
20Employees Group Insurance Act of 1971 with respect to salaries
21paid to teachers for that period.
22    The additional 1% employee contribution required under
23Section 16-152 by this amendatory Act of 1998 is the
24responsibility of the teacher and not the teacher's employer,
25unless the employer agrees, through collective bargaining or
26otherwise, to make the contribution on behalf of the teacher.

 

 

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1    If an employer is required by a contract in effect on May
21, 1998 between the employer and an employee organization to
3pay, on behalf of all its full-time employees covered by this
4Article, all mandatory employee contributions required under
5this Article, then the employer shall be excused from paying
6the employer contribution required under this subsection (e)
7for the balance of the term of that contract. The employer and
8the employee organization shall jointly certify to the System
9the existence of the contractual requirement, in such form as
10the System may prescribe. This exclusion shall cease upon the
11termination, extension, or renewal of the contract at any time
12after May 1, 1998.
13    (f) If the amount of a teacher's salary for any school year
14used to determine final average salary exceeds the member's
15annual full-time salary rate with the same employer for the
16previous school year by more than 6%, the teacher's employer
17shall pay to the System, in addition to all other payments
18required under this Section and in accordance with guidelines
19established by the System, the present value of the increase in
20benefits resulting from the portion of the increase in salary
21that is in excess of 6%. This present value shall be computed
22by the System on the basis of the actuarial assumptions and
23tables used in the most recent actuarial valuation of the
24System that is available at the time of the computation. If a
25teacher's salary for the 2005-2006 school year is used to
26determine final average salary under this subsection (f), then

 

 

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1the changes made to this subsection (f) by Public Act 94-1057
2shall apply in calculating whether the increase in his or her
3salary is in excess of 6%. For the purposes of this Section,
4change in employment under Section 10-21.12 of the School Code
5on or after June 1, 2005 shall constitute a change in employer.
6The System may require the employer to provide any pertinent
7information or documentation. The changes made to this
8subsection (f) by this amendatory Act of the 94th General
9Assembly apply without regard to whether the teacher was in
10service on or after its effective date.
11    Whenever it determines that a payment is or may be required
12under this subsection, the System shall calculate the amount of
13the payment and bill the employer for that amount. The bill
14shall specify the calculations used to determine the amount
15due. If the employer disputes the amount of the bill, it may,
16within 30 days after receipt of the bill, apply to the System
17in writing for a recalculation. The application must specify in
18detail the grounds of the dispute and, if the employer asserts
19that the calculation is subject to subsection (g) or (h) of
20this Section, must include an affidavit setting forth and
21attesting to all facts within the employer's knowledge that are
22pertinent to the applicability of that subsection. Upon
23receiving a timely application for recalculation, the System
24shall review the application and, if appropriate, recalculate
25the amount due.
26    The employer contributions required under this subsection

 

 

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1(f) may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not paid
3within 90 days after receipt of the bill, then interest will be
4charged at a rate equal to the System's annual actuarially
5assumed rate of return on investment compounded annually from
6the 91st day after receipt of the bill. Payments must be
7concluded within 3 years after the employer's receipt of the
8bill.
9    (g) This subsection (g) applies only to payments made or
10salary increases given on or after June 1, 2005 but before July
111, 2011. The changes made by Public Act 94-1057 shall not
12require the System to refund any payments received before July
1331, 2006 (the effective date of Public Act 94-1057).
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases paid to teachers
16under contracts or collective bargaining agreements entered
17into, amended, or renewed before June 1, 2005.
18    When assessing payment for any amount due under subsection
19(f), the System shall exclude salary increases paid to a
20teacher at a time when the teacher is 10 or more years from
21retirement eligibility under Section 16-132 or 16-133.2.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases resulting from
24overload work, including summer school, when the school
25district has certified to the System, and the System has
26approved the certification, that (i) the overload work is for

 

 

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1the sole purpose of classroom instruction in excess of the
2standard number of classes for a full-time teacher in a school
3district during a school year and (ii) the salary increases are
4equal to or less than the rate of pay for classroom instruction
5computed on the teacher's current salary and work schedule.
6    When assessing payment for any amount due under subsection
7(f), the System shall exclude a salary increase resulting from
8a promotion (i) for which the employee is required to hold a
9certificate or supervisory endorsement issued by the State
10Teacher Certification Board that is a different certification
11or supervisory endorsement than is required for the teacher's
12previous position and (ii) to a position that has existed and
13been filled by a member for no less than one complete academic
14year and the salary increase from the promotion is an increase
15that results in an amount no greater than the lesser of the
16average salary paid for other similar positions in the district
17requiring the same certification or the amount stipulated in
18the collective bargaining agreement for a similar position
19requiring the same certification.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude any payment to the teacher from
22the State of Illinois or the State Board of Education over
23which the employer does not have discretion, notwithstanding
24that the payment is included in the computation of final
25average salary.
26    (h) When assessing payment for any amount due under

 

 

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1subsection (f), the System shall exclude any salary increase
2described in subsection (g) of this Section given on or after
3July 1, 2011 but before July 1, 2014 under a contract or
4collective bargaining agreement entered into, amended, or
5renewed on or after June 1, 2005 but before July 1, 2011.
6Notwithstanding any other provision of this Section, any
7payments made or salary increases given after June 30, 2014
8shall be used in assessing payment for any amount due under
9subsection (f) of this Section.
10    (i) The System shall prepare a report and file copies of
11the report with the Governor and the General Assembly by
12January 1, 2007 that contains all of the following information:
13        (1) The number of recalculations required by the
14    changes made to this Section by Public Act 94-1057 for each
15    employer.
16        (2) The dollar amount by which each employer's
17    contribution to the System was changed due to
18    recalculations required by Public Act 94-1057.
19        (3) The total amount the System received from each
20    employer as a result of the changes made to this Section by
21    Public Act 94-4.
22        (4) The increase in the required State contribution
23    resulting from the changes made to this Section by Public
24    Act 94-1057.
25    (j) For purposes of determining the required State
26contribution to the System, the value of the System's assets

 

 

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1shall be equal to the actuarial value of the System's assets,
2which shall be calculated as follows:
3    As of June 30, 2008, the actuarial value of the System's
4assets shall be equal to the market value of the assets as of
5that date. In determining the actuarial value of the System's
6assets for fiscal years after June 30, 2008, any actuarial
7gains or losses from investment return incurred in a fiscal
8year shall be recognized in equal annual amounts over the
95-year period following that fiscal year.
10    (k) For purposes of determining the required State
11contribution to the system for a particular year, the actuarial
12value of assets shall be assumed to earn a rate of return equal
13to the system's actuarially assumed rate of return.
14(Source: P.A. 97-694, eff. 6-18-12; 97-813, eff. 7-13-12;
1598-599, eff. 6-1-14; 98-674, eff. 6-30-14.)
 
16    (Text of Section WITHOUT the changes made by P.A. 98-599,
17which has been held unconstitutional)
18    Sec. 16-158. Contributions by State and other employing
19units.
20    (a) The State shall make contributions to the System by
21means of appropriations from the Common School Fund and other
22State funds of amounts which, together with other employer
23contributions, employee contributions, investment income, and
24other income, will be sufficient to meet the cost of
25maintaining and administering the System on a 90% funded basis

 

 

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1in accordance with actuarial recommendations.
2    The Board shall determine the amount of State contributions
3required for each fiscal year on the basis of the actuarial
4tables and other assumptions adopted by the Board and the
5recommendations of the actuary, using the formula in subsection
6(b-3).
7    (a-1) Annually, on or before November 15 until November 15,
82011, the Board shall certify to the Governor the amount of the
9required State contribution for the coming fiscal year. The
10certification under this subsection (a-1) shall include a copy
11of the actuarial recommendations upon which it is based and
12shall specifically identify the System's projected State
13normal cost for that fiscal year.
14    On or before May 1, 2004, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2005, taking
17into account the amounts appropriated to and received by the
18System under subsection (d) of Section 7.2 of the General
19Obligation Bond Act.
20    On or before July 1, 2005, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2006, taking
23into account the changes in required State contributions made
24by this amendatory Act of the 94th General Assembly.
25    On or before April 1, 2011, the Board shall recalculate and
26recertify to the Governor the amount of the required State

 

 

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1contribution to the System for State fiscal year 2011, applying
2the changes made by Public Act 96-889 to the System's assets
3and liabilities as of June 30, 2009 as though Public Act 96-889
4was approved on that date.
5    (a-5) On or before November 1 of each year, beginning
6November 1, 2012, the Board shall submit to the State Actuary,
7the Governor, and the General Assembly a proposed certification
8of the amount of the required State contribution to the System
9for the next fiscal year, along with all of the actuarial
10assumptions, calculations, and data upon which that proposed
11certification is based. On or before January 1 of each year,
12beginning January 1, 2013, the State Actuary shall issue a
13preliminary report concerning the proposed certification and
14identifying, if necessary, recommended changes in actuarial
15assumptions that the Board must consider before finalizing its
16certification of the required State contributions. On or before
17January 15, 2013 and each January 15 thereafter, the Board
18shall certify to the Governor and the General Assembly the
19amount of the required State contribution for the next fiscal
20year. The Board's certification must note any deviations from
21the State Actuary's recommended changes, the reason or reasons
22for not following the State Actuary's recommended changes, and
23the fiscal impact of not following the State Actuary's
24recommended changes on the required State contribution.
25    (b) Through State fiscal year 1995, the State contributions
26shall be paid to the System in accordance with Section 18-7 of

 

 

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1the School Code.
2    (b-1) Beginning in State fiscal year 1996, on the 15th day
3of each month, or as soon thereafter as may be practicable, the
4Board shall submit vouchers for payment of State contributions
5to the System, in a total monthly amount of one-twelfth of the
6required annual State contribution certified under subsection
7(a-1). From the effective date of this amendatory Act of the
893rd General Assembly through June 30, 2004, the Board shall
9not submit vouchers for the remainder of fiscal year 2004 in
10excess of the fiscal year 2004 certified contribution amount
11determined under this Section after taking into consideration
12the transfer to the System under subsection (a) of Section
136z-61 of the State Finance Act. These vouchers shall be paid by
14the State Comptroller and Treasurer by warrants drawn on the
15funds appropriated to the System for that fiscal year.
16    If in any month the amount remaining unexpended from all
17other appropriations to the System for the applicable fiscal
18year (including the appropriations to the System under Section
198.12 of the State Finance Act and Section 1 of the State
20Pension Funds Continuing Appropriation Act) is less than the
21amount lawfully vouchered under this subsection, the
22difference shall be paid from the Common School Fund under the
23continuing appropriation authority provided in Section 1.1 of
24the State Pension Funds Continuing Appropriation Act.
25    (b-2) Allocations from the Common School Fund apportioned
26to school districts not coming under this System shall not be

 

 

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1diminished or affected by the provisions of this Article.
2    (b-3) For State fiscal years 2012 through 2045, the minimum
3contribution to the System to be made by the State for each
4fiscal year shall be an amount determined by the System to be
5sufficient to bring the total assets of the System up to 90% of
6the total actuarial liabilities of the System by the end of
7State fiscal year 2045. In making these determinations, the
8required State contribution shall be calculated each year as a
9level percentage of payroll over the years remaining to and
10including fiscal year 2045 and shall be determined under the
11projected unit credit actuarial cost method.
12    For State fiscal years 1996 through 2005, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15so that by State fiscal year 2011, the State is contributing at
16the rate required under this Section; except that in the
17following specified State fiscal years, the State contribution
18to the System shall not be less than the following indicated
19percentages of the applicable employee payroll, even if the
20indicated percentage will produce a State contribution in
21excess of the amount otherwise required under this subsection
22and subsection (a), and notwithstanding any contrary
23certification made under subsection (a-1) before the effective
24date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
25in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
262003; and 13.56% in FY 2004.

 

 

SB0231 Engrossed- 39 -LRB099 03162 NHT 23170 b

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2006 is
3$534,627,700.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2007 is
6$738,014,500.
7    For each of State fiscal years 2008 through 2009, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10from the required State contribution for State fiscal year
112007, so that by State fiscal year 2011, the State is
12contributing at the rate otherwise required under this Section.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2010 is
15$2,089,268,000 and shall be made from the proceeds of bonds
16sold in fiscal year 2010 pursuant to Section 7.2 of the General
17Obligation Bond Act, less (i) the pro rata share of bond sale
18expenses determined by the System's share of total bond
19proceeds, (ii) any amounts received from the Common School Fund
20in fiscal year 2010, and (iii) any reduction in bond proceeds
21due to the issuance of discounted bonds, if applicable.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2011 is
24the amount recertified by the System on or before April 1, 2011
25pursuant to subsection (a-1) of this Section and shall be made
26from the proceeds of bonds sold in fiscal year 2011 pursuant to

 

 

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1Section 7.2 of the General Obligation Bond Act, less (i) the
2pro rata share of bond sale expenses determined by the System's
3share of total bond proceeds, (ii) any amounts received from
4the Common School Fund in fiscal year 2011, and (iii) any
5reduction in bond proceeds due to the issuance of discounted
6bonds, if applicable. This amount shall include, in addition to
7the amount certified by the System, an amount necessary to meet
8employer contributions required by the State as an employer
9under paragraph (e) of this Section, which may also be used by
10the System for contributions required by paragraph (a) of
11Section 16-127.
12    Beginning in State fiscal year 2046, the minimum State
13contribution for each fiscal year shall be the amount needed to
14maintain the total assets of the System at 90% of the total
15actuarial liabilities of the System.
16    Amounts received by the System pursuant to Section 25 of
17the Budget Stabilization Act or Section 8.12 of the State
18Finance Act in any fiscal year do not reduce and do not
19constitute payment of any portion of the minimum State
20contribution required under this Article in that fiscal year.
21Such amounts shall not reduce, and shall not be included in the
22calculation of, the required State contributions under this
23Article in any future year until the System has reached a
24funding ratio of at least 90%. A reference in this Article to
25the "required State contribution" or any substantially similar
26term does not include or apply to any amounts payable to the

 

 

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1System under Section 25 of the Budget Stabilization Act.
2    Notwithstanding any other provision of this Section, the
3required State contribution for State fiscal year 2005 and for
4fiscal year 2008 and each fiscal year thereafter, as calculated
5under this Section and certified under subsection (a-1), shall
6not exceed an amount equal to (i) the amount of the required
7State contribution that would have been calculated under this
8Section for that fiscal year if the System had not received any
9payments under subsection (d) of Section 7.2 of the General
10Obligation Bond Act, minus (ii) the portion of the State's
11total debt service payments for that fiscal year on the bonds
12issued in fiscal year 2003 for the purposes of that Section
137.2, as determined and certified by the Comptroller, that is
14the same as the System's portion of the total moneys
15distributed under subsection (d) of Section 7.2 of the General
16Obligation Bond Act. In determining this maximum for State
17fiscal years 2008 through 2010, however, the amount referred to
18in item (i) shall be increased, as a percentage of the
19applicable employee payroll, in equal increments calculated
20from the sum of the required State contribution for State
21fiscal year 2007 plus the applicable portion of the State's
22total debt service payments for fiscal year 2007 on the bonds
23issued in fiscal year 2003 for the purposes of Section 7.2 of
24the General Obligation Bond Act, so that, by State fiscal year
252011, the State is contributing at the rate otherwise required
26under this Section.

 

 

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1    (c) Payment of the required State contributions and of all
2pensions, retirement annuities, death benefits, refunds, and
3other benefits granted under or assumed by this System, and all
4expenses in connection with the administration and operation
5thereof, are obligations of the State.
6    If members are paid from special trust or federal funds
7which are administered by the employing unit, whether school
8district or other unit, the employing unit shall pay to the
9System from such funds the full accruing retirement costs based
10upon that service, which, beginning July 1, 2016 2014, shall be
11at a rate, expressed as a percentage of salary, equal to the
12total employer's minimum contribution to the System to be made
13by the State for that fiscal year, including both normal cost
14and unfunded liability components, expressed as a percentage of
15payroll, as determined by the System under subsection (b-3) of
16this Section. Employer contributions, based on salary paid to
17members from federal funds, may be forwarded by the
18distributing agency of the State of Illinois to the System
19prior to allocation, in an amount determined in accordance with
20guidelines established by such agency and the System. Any
21contribution for fiscal year 2015 collected as a result of the
22change made by this amendatory Act of the 98th General Assembly
23shall be considered a State contribution under subsection (b-3)
24of this Section.
25    (d) Effective July 1, 1986, any employer of a teacher as
26defined in paragraph (8) of Section 16-106 shall pay the

 

 

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1employer's normal cost of benefits based upon the teacher's
2service, in addition to employee contributions, as determined
3by the System. Such employer contributions shall be forwarded
4monthly in accordance with guidelines established by the
5System.
6    However, with respect to benefits granted under Section
716-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
8of Section 16-106, the employer's contribution shall be 12%
9(rather than 20%) of the member's highest annual salary rate
10for each year of creditable service granted, and the employer
11shall also pay the required employee contribution on behalf of
12the teacher. For the purposes of Sections 16-133.4 and
1316-133.5, a teacher as defined in paragraph (8) of Section
1416-106 who is serving in that capacity while on leave of
15absence from another employer under this Article shall not be
16considered an employee of the employer from which the teacher
17is on leave.
18    (e) Beginning July 1, 1998, every employer of a teacher
19shall pay to the System an employer contribution computed as
20follows:
21        (1) Beginning July 1, 1998 through June 30, 1999, the
22    employer contribution shall be equal to 0.3% of each
23    teacher's salary.
24        (2) Beginning July 1, 1999 and thereafter, the employer
25    contribution shall be equal to 0.58% of each teacher's
26    salary.

 

 

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1The school district or other employing unit may pay these
2employer contributions out of any source of funding available
3for that purpose and shall forward the contributions to the
4System on the schedule established for the payment of member
5contributions.
6    These employer contributions are intended to offset a
7portion of the cost to the System of the increases in
8retirement benefits resulting from this amendatory Act of 1998.
9    Each employer of teachers is entitled to a credit against
10the contributions required under this subsection (e) with
11respect to salaries paid to teachers for the period January 1,
122002 through June 30, 2003, equal to the amount paid by that
13employer under subsection (a-5) of Section 6.6 of the State
14Employees Group Insurance Act of 1971 with respect to salaries
15paid to teachers for that period.
16    The additional 1% employee contribution required under
17Section 16-152 by this amendatory Act of 1998 is the
18responsibility of the teacher and not the teacher's employer,
19unless the employer agrees, through collective bargaining or
20otherwise, to make the contribution on behalf of the teacher.
21    If an employer is required by a contract in effect on May
221, 1998 between the employer and an employee organization to
23pay, on behalf of all its full-time employees covered by this
24Article, all mandatory employee contributions required under
25this Article, then the employer shall be excused from paying
26the employer contribution required under this subsection (e)

 

 

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1for the balance of the term of that contract. The employer and
2the employee organization shall jointly certify to the System
3the existence of the contractual requirement, in such form as
4the System may prescribe. This exclusion shall cease upon the
5termination, extension, or renewal of the contract at any time
6after May 1, 1998.
7    (f) If the amount of a teacher's salary for any school year
8used to determine final average salary exceeds the member's
9annual full-time salary rate with the same employer for the
10previous school year by more than 6%, the teacher's employer
11shall pay to the System, in addition to all other payments
12required under this Section and in accordance with guidelines
13established by the System, the present value of the increase in
14benefits resulting from the portion of the increase in salary
15that is in excess of 6%. This present value shall be computed
16by the System on the basis of the actuarial assumptions and
17tables used in the most recent actuarial valuation of the
18System that is available at the time of the computation. If a
19teacher's salary for the 2005-2006 school year is used to
20determine final average salary under this subsection (f), then
21the changes made to this subsection (f) by Public Act 94-1057
22shall apply in calculating whether the increase in his or her
23salary is in excess of 6%. For the purposes of this Section,
24change in employment under Section 10-21.12 of the School Code
25on or after June 1, 2005 shall constitute a change in employer.
26The System may require the employer to provide any pertinent

 

 

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1information or documentation. The changes made to this
2subsection (f) by this amendatory Act of the 94th General
3Assembly apply without regard to whether the teacher was in
4service on or after its effective date.
5    Whenever it determines that a payment is or may be required
6under this subsection, the System shall calculate the amount of
7the payment and bill the employer for that amount. The bill
8shall specify the calculations used to determine the amount
9due. If the employer disputes the amount of the bill, it may,
10within 30 days after receipt of the bill, apply to the System
11in writing for a recalculation. The application must specify in
12detail the grounds of the dispute and, if the employer asserts
13that the calculation is subject to subsection (g) or (h) of
14this Section, must include an affidavit setting forth and
15attesting to all facts within the employer's knowledge that are
16pertinent to the applicability of that subsection. Upon
17receiving a timely application for recalculation, the System
18shall review the application and, if appropriate, recalculate
19the amount due.
20    The employer contributions required under this subsection
21(f) may be paid in the form of a lump sum within 90 days after
22receipt of the bill. If the employer contributions are not paid
23within 90 days after receipt of the bill, then interest will be
24charged at a rate equal to the System's annual actuarially
25assumed rate of return on investment compounded annually from
26the 91st day after receipt of the bill. Payments must be

 

 

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1concluded within 3 years after the employer's receipt of the
2bill.
3    (g) This subsection (g) applies only to payments made or
4salary increases given on or after June 1, 2005 but before July
51, 2011. The changes made by Public Act 94-1057 shall not
6require the System to refund any payments received before July
731, 2006 (the effective date of Public Act 94-1057).
8    When assessing payment for any amount due under subsection
9(f), the System shall exclude salary increases paid to teachers
10under contracts or collective bargaining agreements entered
11into, amended, or renewed before June 1, 2005.
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude salary increases paid to a
14teacher at a time when the teacher is 10 or more years from
15retirement eligibility under Section 16-132 or 16-133.2.
16    When assessing payment for any amount due under subsection
17(f), the System shall exclude salary increases resulting from
18overload work, including summer school, when the school
19district has certified to the System, and the System has
20approved the certification, that (i) the overload work is for
21the sole purpose of classroom instruction in excess of the
22standard number of classes for a full-time teacher in a school
23district during a school year and (ii) the salary increases are
24equal to or less than the rate of pay for classroom instruction
25computed on the teacher's current salary and work schedule.
26    When assessing payment for any amount due under subsection

 

 

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1(f), the System shall exclude a salary increase resulting from
2a promotion (i) for which the employee is required to hold a
3certificate or supervisory endorsement issued by the State
4Teacher Certification Board that is a different certification
5or supervisory endorsement than is required for the teacher's
6previous position and (ii) to a position that has existed and
7been filled by a member for no less than one complete academic
8year and the salary increase from the promotion is an increase
9that results in an amount no greater than the lesser of the
10average salary paid for other similar positions in the district
11requiring the same certification or the amount stipulated in
12the collective bargaining agreement for a similar position
13requiring the same certification.
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude any payment to the teacher from
16the State of Illinois or the State Board of Education over
17which the employer does not have discretion, notwithstanding
18that the payment is included in the computation of final
19average salary.
20    (h) When assessing payment for any amount due under
21subsection (f), the System shall exclude any salary increase
22described in subsection (g) of this Section given on or after
23July 1, 2011 but before July 1, 2014 under a contract or
24collective bargaining agreement entered into, amended, or
25renewed on or after June 1, 2005 but before July 1, 2011.
26Notwithstanding any other provision of this Section, any

 

 

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1payments made or salary increases given after June 30, 2014
2shall be used in assessing payment for any amount due under
3subsection (f) of this Section.
4    (i) The System shall prepare a report and file copies of
5the report with the Governor and the General Assembly by
6January 1, 2007 that contains all of the following information:
7        (1) The number of recalculations required by the
8    changes made to this Section by Public Act 94-1057 for each
9    employer.
10        (2) The dollar amount by which each employer's
11    contribution to the System was changed due to
12    recalculations required by Public Act 94-1057.
13        (3) The total amount the System received from each
14    employer as a result of the changes made to this Section by
15    Public Act 94-4.
16        (4) The increase in the required State contribution
17    resulting from the changes made to this Section by Public
18    Act 94-1057.
19    (j) For purposes of determining the required State
20contribution to the System, the value of the System's assets
21shall be equal to the actuarial value of the System's assets,
22which shall be calculated as follows:
23    As of June 30, 2008, the actuarial value of the System's
24assets shall be equal to the market value of the assets as of
25that date. In determining the actuarial value of the System's
26assets for fiscal years after June 30, 2008, any actuarial

 

 

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1gains or losses from investment return incurred in a fiscal
2year shall be recognized in equal annual amounts over the
35-year period following that fiscal year.
4    (k) For purposes of determining the required State
5contribution to the system for a particular year, the actuarial
6value of assets shall be assumed to earn a rate of return equal
7to the system's actuarially assumed rate of return.
8(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
996-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
106-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
11    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
12    Sec. 17-127. Financing; revenues for the Fund.
13    (a) The revenues for the Fund shall consist of: (1) amounts
14paid into the Fund by contributors thereto and from employer
15contributions and State appropriations in accordance with this
16Article; (2) amounts contributed to the Fund by an Employer;
17(3) amounts contributed to the Fund pursuant to any law now in
18force or hereafter to be enacted; (4) contributions from any
19other source; and (5) the earnings on investments.
20    (b) The General Assembly finds that for many years the
21State has contributed to the Fund an annual amount that is
22between 20% and 30% of the amount of the annual State
23contribution to the Article 16 retirement system, and the
24General Assembly declares that it is its goal and intention to
25continue this level of contribution to the Fund in the future.

 

 

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1    (c) Beginning in State fiscal year 1999, the State shall
2include in its annual contribution to the Fund an additional
3amount equal to 0.544% of the Fund's total teacher payroll;
4except that this additional contribution need not be made in a
5fiscal year if the Board has certified in the previous fiscal
6year that the Fund is at least 90% funded, based on actuarial
7determinations. These additional State contributions are
8intended to offset a portion of the cost to the Fund of the
9increases in retirement benefits resulting from this
10amendatory Act of 1998.
11    (d) In addition to any other contribution required under
12this Article, including the contribution required under
13subsection (c), the State shall contribute to the Fund the
14following amounts:
15        (1) For State fiscal year 2017, the State shall
16    contribute $205,404,986.
17        (2) Beginning in State fiscal year 2018, the State
18    shall contribute for each fiscal year an amount to be
19    determined by the Fund, equal to the employer normal cost
20    for that fiscal year, plus the amount allowed pursuant to
21    paragraph (3) of Section 17-142.1, to defray health
22    insurance costs.
23    (e) The Board shall determine the amount of State
24contributions required for each fiscal year on the basis of the
25actuarial tables and other assumptions adopted by the Board and
26the recommendations of the actuary. On or before November 1 of

 

 

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1each year, beginning November 1, 2016, the Board shall submit
2to the State Actuary, the Governor, and the General Assembly a
3proposed certification of the amount of the required State
4contribution to the Fund for the next fiscal year, along with
5all of the actuarial assumptions, calculations, and data upon
6which that proposed certification is based.
7    On or before January 1 of each year, beginning January 1,
82017, the State Actuary shall issue a preliminary report
9concerning the proposed certification and identifying, if
10necessary, recommended changes in actuarial assumptions that
11the Board must consider before finalizing its certification of
12the required State contributions.
13    (f) On or before January 15, 2017 and each January 15
14thereafter, the Board shall certify to the Governor and the
15General Assembly the amount of the required State contribution
16for the next fiscal year. The certification shall include a
17copy of the actuarial recommendations upon which it is based
18and shall specifically identify the Fund's projected employer
19normal cost for that fiscal year. The Board's certification
20must note any deviations from the State Actuary's recommended
21changes, the reason or reasons for not following the State
22Actuary's recommended changes, and the fiscal impact of not
23following the State Actuary's recommended changes on the
24required State contribution.
25    For the purposes of this Article, including issuing
26vouchers, and for the purposes of subsection (h) of Section 1.1

 

 

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1of the State Pension Funds Continuing Appropriation Act, the
2State contribution specified for State fiscal year 2017 shall
3be deemed to have been certified, by operation of law and
4without official action by the Board or the State Actuary, in
5the amount provided in subsection (d) of this Section.
6    (g) Beginning in State fiscal year 2017, on the 15th day of
7each month, or as soon thereafter as may be practicable, the
8Board shall submit vouchers for payment of State contributions
9to the Fund, in a total monthly amount of one-twelfth of the
10required annual State contribution under subsection (d). These
11vouchers shall be paid by the State Comptroller and Treasurer
12by warrants drawn on the funds appropriated to the Fund for
13that fiscal year. If in any month the amount remaining
14unexpended from all other State appropriations to the Fund for
15the applicable fiscal year is less than the amount lawfully
16vouchered under this subsection, the difference shall be paid
17from the Common School Fund under the continuing appropriation
18authority provided in Section 1.1 of the State Pension Funds
19Continuing Appropriation Act.
20(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
2190-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
22    Section 918. The State Pension Funds Continuing
23Appropriation Act is amended by changing Section 1.1 as
24follows:
 

 

 

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1    (40 ILCS 15/1.1)
2    Sec. 1.1. Appropriations to certain retirement systems.
3    (a) There is hereby appropriated from the General Revenue
4Fund to the General Assembly Retirement System, on a continuing
5monthly basis, the amount, if any, by which the total available
6amount of all other appropriations to that retirement system
7for the payment of State contributions is less than the total
8amount of the vouchers for required State contributions
9lawfully submitted by the retirement system for that month
10under Section 2-134 of the Illinois Pension Code.
11    (b) There is hereby appropriated from the General Revenue
12Fund to the State Universities Retirement System, on a
13continuing monthly basis, the amount, if any, by which the
14total available amount of all other appropriations to that
15retirement system for the payment of State contributions,
16including any deficiency in the required contributions of the
17optional retirement program established under Section 15-158.2
18of the Illinois Pension Code, is less than the total amount of
19the vouchers for required State contributions lawfully
20submitted by the retirement system for that month under Section
2115-165 of the Illinois Pension Code.
22    (c) There is hereby appropriated from the Common School
23Fund to the Teachers' Retirement System of the State of
24Illinois, on a continuing monthly basis, the amount, if any, by
25which the total available amount of all other appropriations to
26that retirement system for the payment of State contributions

 

 

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1is less than the total amount of the vouchers for required
2State contributions lawfully submitted by the retirement
3system for that month under Section 16-158 of the Illinois
4Pension Code.
5    (d) There is hereby appropriated from the General Revenue
6Fund to the Judges Retirement System of Illinois, on a
7continuing monthly basis, the amount, if any, by which the
8total available amount of all other appropriations to that
9retirement system for the payment of State contributions is
10less than the total amount of the vouchers for required State
11contributions lawfully submitted by the retirement system for
12that month under Section 18-140 of the Illinois Pension Code.
13    (e) The continuing appropriations provided by subsections
14(a), (b), (c), and (d) of this Section shall first be available
15in State fiscal year 1996. The continuing appropriations
16provided by subsection (h) of this Section shall first be
17available as provided in that subsection (h).
18    (f) For State fiscal year 2010 only, the continuing
19appropriations provided by this Section are equal to the amount
20certified by each System on or before December 31, 2008, less
21(i) the gross proceeds of the bonds sold in fiscal year 2010
22under the authorization contained in subsection (a) of Section
237.2 of the General Obligation Bond Act and (ii) any amounts
24received from the State Pensions Fund.
25    (g) For State fiscal year 2011 only, the continuing
26appropriations provided by this Section are equal to the amount

 

 

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1certified by each System on or before April 1, 2011, less (i)
2the gross proceeds of the bonds sold in fiscal year 2011 under
3the authorization contained in subsection (a) of Section 7.2 of
4the General Obligation Bond Act and (ii) any amounts received
5from the State Pensions Fund.
6    (h) There is hereby appropriated from the Common School
7Fund to the Public School Teachers' Pension and Retirement Fund
8of Chicago, on a continuing monthly basis, the amount, if any,
9by which the total available amount of all other State
10appropriations to that Retirement Fund for the payment of State
11contributions under subsection (d) of Section 17-127 of the
12Illinois Pension Code is less than the total amount of the
13vouchers for required State contributions lawfully submitted
14by the Retirement Fund for that month under that Section
1517-127.
16(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1796-1511, eff. 1-27-11.)
 
18    Section 920. The Innovation Development and Economy Act is
19amended by changing Section 33 as follows:
 
20    (50 ILCS 470/33)
21    Sec. 33. STAR Bonds School Improvement and Operations Trust
22Fund.
23    (a) The STAR Bonds School Improvement and Operations Trust
24Fund is created as a trust fund in the State treasury. Deposits

 

 

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1into the Trust Fund shall be made as provided under this
2Section. Moneys in the Trust Fund shall be used by the
3Department of Revenue only for the purpose of making payments
4to school districts in educational service regions that include
5or are adjacent to the STAR bond district. Moneys in the Trust
6Fund are not subject to appropriation and shall be used solely
7as provided in this Section. All deposits into the Trust Fund
8shall be held in the Trust Fund by the State Treasurer as ex
9officio custodian separate and apart from all public moneys or
10funds of this State and shall be administered by the Department
11exclusively for the purposes set forth in this Section. All
12moneys in the Trust Fund shall be invested and reinvested by
13the State Treasurer. All interest accruing from these
14investments shall be deposited in the Trust Fund.
15    (b) Upon approval of a STAR bond district, the political
16subdivision shall immediately transmit to the county clerk of
17the county in which the district is located a certified copy of
18the ordinance creating the district, a legal description of the
19district, a map of the district, identification of the year
20that the county clerk shall use for determining the total
21initial equalized assessed value of the district consistent
22with subsection (c), and a list of the parcel or tax
23identification number of each parcel of property included in
24the district.
25    (c) Upon approval of a STAR bond district, the county clerk
26immediately thereafter shall determine (i) the most recently

 

 

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1ascertained equalized assessed value of each lot, block, tract,
2or parcel of real property within the STAR bond district, from
3which shall be deducted the homestead exemptions under Article
415 of the Property Tax Code, which value shall be the initial
5equalized assessed value of each such piece of property, and
6(ii) the total equalized assessed value of all taxable real
7property within the district by adding together the most
8recently ascertained equalized assessed value of each taxable
9lot, block, tract, or parcel of real property within the
10district, from which shall be deducted the homestead exemptions
11under Article 15 of the Property Tax Code, and shall certify
12that amount as the total initial equalized assessed value of
13the taxable real property within the STAR bond district.
14    (d) In reference to any STAR bond district created within
15any political subdivision, and in respect to which the county
16clerk has certified the total initial equalized assessed value
17of the property in the area, the political subdivision may
18thereafter request the clerk in writing to adjust the initial
19equalized value of all taxable real property within the STAR
20bond district by deducting therefrom the exemptions under
21Article 15 of the Property Tax Code applicable to each lot,
22block, tract, or parcel of real property within the STAR bond
23district. The county clerk shall immediately, after the written
24request to adjust the total initial equalized value is
25received, determine the total homestead exemptions in the STAR
26bond district as provided under Article 15 of the Property Tax

 

 

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

 

 

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1the district. Each year, the property taxes arising from the
2increase in equalized assessed value in the STAR bond district
3shall be determined for each taxing district and shall be
4certified to the county collector.
5    (g) Beginning with the year in which taxes are collected
6based on the assessment year in which the first destination
7user in the first STAR bond project in a STAR bond district
8makes its first retail sales and for each year thereafter until
9final maturity of the last STAR bonds issued in the district,
10the county collector shall, within 30 days after receipt of
11property taxes, transmit to the Department to be deposited into
12the STAR Bonds School Improvement and Operations Trust Fund 15%
13of property taxes attributable to the increase in equalized
14assessed value within the STAR bond district from each taxing
15district as certified in subsection (f).
16    (h) The Department shall pay to the regional superintendent
17of schools whose educational service region includes Franklin
18and Williamson Counties, for each year for which money is
19remitted to the Department and paid into the STAR Bonds School
20Improvement and Operations Trust Fund, the money in the Fund as
21provided in this Section. The amount paid to each school
22district shall be allocated proportionately, based on each
23qualifying school district's fall enrollment for the
24then-current school year, such that the school district with
25the largest fall enrollment receives the largest proportionate
26share of money paid out of the Fund or by any other method or

 

 

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1formula that the regional superintendent of schools deems fit,
2equitable, and in the public interest. The regional
3superintendent may allocate moneys to school districts that are
4outside of his or her educational service region or to other
5regional superintendents.
6    The Department shall determine the distributions under
7this Section using its best judgment and information. The
8Department shall be held harmless for the distributions made
9under this Section and all distributions shall be final.
10    (i) In any year that an assessment appeal is filed, the
11extension of taxes on any assessment so appealed shall not be
12delayed. In the case of an assessment that is altered, any
13taxes extended upon the unauthorized assessment or part thereof
14shall be abated, or, if already paid, shall be refunded with
15interest as provided in Section 23-20 of the Property Tax Code.
16In the case of an assessment appeal, the county collector shall
17notify the Department that an assessment appeal has been filed
18and the amount of the tax that would have been deposited in the
19STAR Bonds School Improvement and Operations Trust Fund. The
20county collector shall hold that amount in a separate fund
21until the appeal process is final. After the appeal process is
22finalized, the county collector shall transmit to the
23Department the amount of tax that remains, if any, after all
24required refunds are made. The Department shall pay any amount
25deposited into the Trust Fund under this Section in the same
26proportion as determined for payments for that taxable year

 

 

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1under subsection (h).
2    (j) In any year that ad valorem taxes are allocated to the
3STAR Bonds School Improvement and Operations Trust Fund, that
4allocation shall not reduce or otherwise impact the school aid
5provided to any school district under the general State school
6aid formula provided for in Section 18-8.05 of the School Code
7or the primary State aid formula provided for in Section
818-8.15 of the School Code.
9(Source: P.A. 96-939, eff. 6-24-10.)
 
10    Section 925. The County Economic Development Project Area
11Property Tax Allocation Act is amended by changing Section 7 as
12follows:
 
13    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
14    Sec. 7. Creation of special tax allocation fund. If a
15county has adopted property tax allocation financing by
16ordinance for an economic development project area, the
17Department has approved and certified the economic development
18project area, and the county clerk has thereafter certified the
19"total initial equalized value" of the taxable real property
20within such economic development project area in the manner
21provided in subsection (b) of Section 6 of this Act, each year
22after the date of the certification by the county clerk of the
23"initial equalized assessed value" until economic development
24project costs and all county obligations financing economic

 

 

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

 

 

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

 

 

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1by the trustee in trust for the benefit of the holders of the
2bonds, and the holders shall have a lien on and a security
3interest in those bonds or accounts so long as the bonds remain
4outstanding and unpaid. Upon retirement of the bonds, the
5trustee shall pay over any excess amounts held to the county
6for deposit in the special tax allocation fund.
7    When the economic development project costs, including
8without limitation all county obligations financing economic
9development project costs incurred under this Act, have been
10paid, all surplus funds then remaining in the special tax
11allocation funds shall be distributed by being paid by the
12county treasurer to the county collector, who shall immediately
13thereafter pay those funds to the taxing districts having
14taxable property in the economic development project area in
15the same manner and proportion as the most recent distribution
16by the county collector to those taxing districts of real
17property taxes from real property in the economic development
18project area.
19    Upon the payment of all economic development project costs,
20retirement of obligations and the distribution of any excess
21monies pursuant to this Section and not later than 23 years
22from the date of adoption of the ordinance adopting property
23tax allocation financing, the county shall adopt an ordinance
24dissolving the special tax allocation fund for the economic
25development project area and terminating the designation of the
26economic development project area as an economic development

 

 

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1project area. Thereafter the rates of the taxing districts
2shall be extended and taxes levied, collected and distributed
3in the manner applicable in the absence of the adoption of
4property tax allocation financing.
5    Nothing in this Section shall be construed as relieving
6property in economic development project areas from being
7assessed as provided in the Property Tax Code or as relieving
8owners of that property from paying a uniform rate of taxes, as
9required by Section 4 of Article IX of the Illinois
10Constitution of 1970.
11(Source: P.A. 98-463, eff. 8-16-13.)
 
12    Section 930. The County Economic Development Project Area
13Tax Increment Allocation Act of 1991 is amended by changing
14Section 50 as follows:
 
15    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
16    Sec. 50. Special tax allocation fund.
17    (a) If a county clerk has certified the "total initial
18equalized assessed value" of the taxable real property within
19an economic development project area in the manner provided in
20Section 45, each year after the date of the certification by
21the county clerk of the "total initial equalized assessed
22value", until economic development project costs and all county
23obligations financing economic development project costs have
24been paid, the ad valorem taxes, if any, arising from the

 

 

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

 

 

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

 

 

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1costs, retirement of obligations, and distribution of any
2excess monies under this Section, the county shall adopt an
3ordinance dissolving the special tax allocation fund for the
4economic development project area and terminating the
5designation of the economic development project area as an
6economic development project area. Thereafter, the rates of the
7taxing districts shall be extended and taxes shall be levied,
8collected, and distributed in the manner applicable in the
9absence of the adoption of tax increment allocation financing.
10    (e) Nothing in this Section shall be construed as relieving
11property in the economic development project areas from being
12assessed as provided in the Property Tax Code or as relieving
13owners of that property from paying a uniform rate of taxes as
14required by Section 4 of Article IX of the Illinois
15Constitution.
16(Source: P.A. 98-463, eff. 8-16-13.)
 
17    Section 935. The Illinois Municipal Code is amended by
18changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
19follows:
 
20    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
21    Sec. 11-74.4-3. Definitions. The following terms, wherever
22used or referred to in this Division 74.4 shall have the
23following respective meanings, unless in any case a different
24meaning clearly appears from the context.

 

 

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1    (a) For any redevelopment project area that has been
2designated pursuant to this Section by an ordinance adopted
3prior to November 1, 1999 (the effective date of Public Act
491-478), "blighted area" shall have the meaning set forth in
5this Section prior to that date.
6    On and after November 1, 1999, "blighted area" means any
7improved or vacant area within the boundaries of a
8redevelopment project area located within the territorial
9limits of the municipality where:
10        (1) If improved, industrial, commercial, and
11    residential buildings or improvements are detrimental to
12    the public safety, health, or welfare because of a
13    combination of 5 or more of the following factors, each of
14    which is (i) present, with that presence documented, to a
15    meaningful extent so that a municipality may reasonably
16    find that the factor is clearly present within the intent
17    of the Act and (ii) reasonably distributed throughout the
18    improved part of the redevelopment project area:
19            (A) Dilapidation. An advanced state of disrepair
20        or neglect of necessary repairs to the primary
21        structural components of buildings or improvements in
22        such a combination that a documented building
23        condition analysis determines that major repair is
24        required or the defects are so serious and so extensive
25        that the buildings must be removed.
26            (B) Obsolescence. The condition or process of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        provides for facilities or improvements to contribute
2        to the alleviation of all or part of the flooding.
3            (D) The area consists of an unused or illegal
4        disposal site containing earth, stone, building
5        debris, or similar materials that were removed from
6        construction, demolition, excavation, or dredge sites.
7            (E) Prior to November 1, 1999, the area is not less
8        than 50 nor more than 100 acres and 75% of which is
9        vacant (notwithstanding that the area has been used for
10        commercial agricultural purposes within 5 years prior
11        to the designation of the redevelopment project area),
12        and the area meets at least one of the factors itemized
13        in paragraph (1) of this subsection, the area has been
14        designated as a town or village center by ordinance or
15        comprehensive plan adopted prior to January 1, 1982,
16        and the area has not been developed for that designated
17        purpose.
18            (F) The area qualified as a blighted improved area
19        immediately prior to becoming vacant, unless there has
20        been substantial private investment in the immediately
21        surrounding area.
22    (b) For any redevelopment project area that has been
23designated pursuant to this Section by an ordinance adopted
24prior to November 1, 1999 (the effective date of Public Act
2591-478), "conservation area" shall have the meaning set forth
26in this Section prior to that date.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Sales Tax Boundary, as the case may be, during the base year
2which shall be the calendar year immediately prior to the year
3in which the municipality adopted tax increment allocation
4financing. For purposes of computing the aggregate amount of
5such taxes for base years occurring prior to 1985, the
6Department of Revenue shall determine the Initial Sales Tax
7Amounts for such taxes and deduct therefrom an amount equal to
84% of the aggregate amount of taxes per year for each year the
9base year is prior to 1985, but not to exceed a total deduction
10of 12%. The amount so determined shall be known as the
11"Adjusted Initial Sales Tax Amounts". For purposes of
12determining the Municipal Sales Tax Increment, the Department
13of Revenue shall for each period subtract from the amount paid
14to the municipality from the Local Government Tax Fund arising
15from sales by retailers and servicemen on transactions located
16in the redevelopment project area or the State Sales Tax
17Boundary, as the case may be, the certified Initial Sales Tax
18Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
19Initial Sales Tax Amounts for the Municipal Retailers'
20Occupation Tax Act and the Municipal Service Occupation Tax
21Act. For the State Fiscal Year 1989, this calculation shall be
22made by utilizing the calendar year 1987 to determine the tax
23amounts received. For the State Fiscal Year 1990, this
24calculation shall be made by utilizing the period from January
251, 1988, until September 30, 1988, to determine the tax amounts
26received from retailers and servicemen pursuant to the

 

 

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

 

 

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1generated within a State Sales Tax Boundary. If, however, a
2municipality established a tax increment financing district in
3a county with a population in excess of 3,000,000 before
4January 1, 1986, and the municipality entered into a contract
5or issued bonds after January 1, 1986, but before December 31,
61986, to finance redevelopment project costs within a State
7Sales Tax Boundary, then the Net State Sales Tax Increment
8means, for the fiscal years beginning July 1, 1990, and July 1,
91991, 100% of the State Sales Tax Increment annually generated
10within a State Sales Tax Boundary; and notwithstanding any
11other provision of this Act, for those fiscal years the
12Department of Revenue shall distribute to those municipalities
13100% of their Net State Sales Tax Increment before any
14distribution to any other municipality and regardless of
15whether or not those other municipalities will receive 100% of
16their Net State Sales Tax Increment. For Fiscal Year 1999, and
17every year thereafter until the year 2007, for any municipality
18that has not entered into a contract or has not issued bonds
19prior to June 1, 1988 to finance redevelopment project costs
20within a State Sales Tax Boundary, the Net State Sales Tax
21Increment shall be calculated as follows: By multiplying the
22Net State Sales Tax Increment by 90% in the State Fiscal Year
231999; 80% in the State Fiscal Year 2000; 70% in the State
24Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
25State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
26in the State Fiscal Year 2005; 20% in the State Fiscal Year

 

 

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12006; and 10% in the State Fiscal Year 2007. No payment shall
2be made for State Fiscal Year 2008 and thereafter.
3    Municipalities that issued bonds in connection with a
4redevelopment project in a redevelopment project area within
5the State Sales Tax Boundary prior to July 29, 1991, or that
6entered into contracts in connection with a redevelopment
7project in a redevelopment project area before June 1, 1988,
8shall continue to receive their proportional share of the
9Illinois Tax Increment Fund distribution until the date on
10which the redevelopment project is completed or terminated. If,
11however, a municipality that issued bonds in connection with a
12redevelopment project in a redevelopment project area within
13the State Sales Tax Boundary prior to July 29, 1991 retires the
14bonds prior to June 30, 2007 or a municipality that entered
15into contracts in connection with a redevelopment project in a
16redevelopment project area before June 1, 1988 completes the
17contracts prior to June 30, 2007, then so long as the
18redevelopment project is not completed or is not terminated,
19the Net State Sales Tax Increment shall be calculated,
20beginning on the date on which the bonds are retired or the
21contracts are completed, as follows: By multiplying the Net
22State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2350% in the State Fiscal Year 2003; 40% in the State Fiscal Year
242004; 30% in the State Fiscal Year 2005; 20% in the State
25Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
26payment shall be made for State Fiscal Year 2008 and

 

 

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1thereafter. Refunding of any bonds issued prior to July 29,
21991, shall not alter the Net State Sales Tax Increment.
3    (j) "State Utility Tax Increment Amount" means an amount
4equal to the aggregate increase in State electric and gas tax
5charges imposed on owners and tenants, other than residential
6customers, of properties located within the redevelopment
7project area under Section 9-222 of the Public Utilities Act,
8over and above the aggregate of such charges as certified by
9the Department of Revenue and paid by owners and tenants, other
10than residential customers, of properties within the
11redevelopment project area during the base year, which shall be
12the calendar year immediately prior to the year of the adoption
13of the ordinance authorizing tax increment allocation
14financing.
15    (k) "Net State Utility Tax Increment" means the sum of the
16following: (a) 80% of the first $100,000 of State Utility Tax
17Increment annually generated by a redevelopment project area;
18(b) 60% of the amount in excess of $100,000 but not exceeding
19$500,000 of the State Utility Tax Increment annually generated
20by a redevelopment project area; and (c) 40% of all amounts in
21excess of $500,000 of State Utility Tax Increment annually
22generated by a redevelopment project area. For the State Fiscal
23Year 1999, and every year thereafter until the year 2007, for
24any municipality that has not entered into a contract or has
25not issued bonds prior to June 1, 1988 to finance redevelopment
26project costs within a redevelopment project area, the Net

 

 

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1State Utility Tax Increment shall be calculated as follows: By
2multiplying the Net State Utility Tax Increment by 90% in the
3State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
4in the State Fiscal Year 2001; 60% in the State Fiscal Year
52002; 50% in the State Fiscal Year 2003; 40% in the State
6Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
7State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
8No payment shall be made for the State Fiscal Year 2008 and
9thereafter.
10    Municipalities that issue bonds in connection with the
11redevelopment project during the period from June 1, 1988 until
123 years after the effective date of this Amendatory Act of 1988
13shall receive the Net State Utility Tax Increment, subject to
14appropriation, for 15 State Fiscal Years after the issuance of
15such bonds. For the 16th through the 20th State Fiscal Years
16after issuance of the bonds, the Net State Utility Tax
17Increment shall be calculated as follows: By multiplying the
18Net State Utility Tax Increment by 90% in year 16; 80% in year
1917; 70% in year 18; 60% in year 19; and 50% in year 20.
20Refunding of any bonds issued prior to June 1, 1988, shall not
21alter the revised Net State Utility Tax Increment payments set
22forth above.
23    (l) "Obligations" mean bonds, loans, debentures, notes,
24special certificates or other evidence of indebtedness issued
25by the municipality to carry out a redevelopment project or to
26refund outstanding obligations.

 

 

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1    (m) "Payment in lieu of taxes" means those estimated tax
2revenues from real property in a redevelopment project area
3derived from real property that has been acquired by a
4municipality which according to the redevelopment project or
5plan is to be used for a private use which taxing districts
6would have received had a municipality not acquired the real
7property and adopted tax increment allocation financing and
8which would result from levies made after the time of the
9adoption of tax increment allocation financing to the time the
10current equalized value of real property in the redevelopment
11project area exceeds the total initial equalized value of real
12property in said area.
13    (n) "Redevelopment plan" means the comprehensive program
14of the municipality for development or redevelopment intended
15by the payment of redevelopment project costs to reduce or
16eliminate those conditions the existence of which qualified the
17redevelopment project area as a "blighted area" or
18"conservation area" or combination thereof or "industrial park
19conservation area," and thereby to enhance the tax bases of the
20taxing districts which extend into the redevelopment project
21area. On and after November 1, 1999 (the effective date of
22Public Act 91-478), no redevelopment plan may be approved or
23amended that includes the development of vacant land (i) with a
24golf course and related clubhouse and other facilities or (ii)
25designated by federal, State, county, or municipal government
26as public land for outdoor recreational activities or for

 

 

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1nature preserves and used for that purpose within 5 years prior
2to the adoption of the redevelopment plan. For the purpose of
3this subsection, "recreational activities" is limited to mean
4camping and hunting. Each redevelopment plan shall set forth in
5writing the program to be undertaken to accomplish the
6objectives and shall include but not be limited to:
7        (A) an itemized list of estimated redevelopment
8    project costs;
9        (B) evidence indicating that the redevelopment project
10    area on the whole has not been subject to growth and
11    development through investment by private enterprise;
12        (C) an assessment of any financial impact of the
13    redevelopment project area on or any increased demand for
14    services from any taxing district affected by the plan and
15    any program to address such financial impact or increased
16    demand;
17        (D) the sources of funds to pay costs;
18        (E) the nature and term of the obligations to be
19    issued;
20        (F) the most recent equalized assessed valuation of the
21    redevelopment project area;
22        (G) an estimate as to the equalized assessed valuation
23    after redevelopment and the general land uses to apply in
24    the redevelopment project area;
25        (H) a commitment to fair employment practices and an
26    affirmative action plan;

 

 

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1        (I) if it concerns an industrial park conservation
2    area, the plan shall also include a general description of
3    any proposed developer, user and tenant of any property, a
4    description of the type, structure and general character of
5    the facilities to be developed, a description of the type,
6    class and number of new employees to be employed in the
7    operation of the facilities to be developed; and
8        (J) if property is to be annexed to the municipality,
9    the plan shall include the terms of the annexation
10    agreement.
11    The provisions of items (B) and (C) of this subsection (n)
12shall not apply to a municipality that before March 14, 1994
13(the effective date of Public Act 88-537) had fixed, either by
14its corporate authorities or by a commission designated under
15subsection (k) of Section 11-74.4-4, a time and place for a
16public hearing as required by subsection (a) of Section
1711-74.4-5. No redevelopment plan shall be adopted unless a
18municipality complies with all of the following requirements:
19        (1) The municipality finds that the redevelopment
20    project area on the whole has not been subject to growth
21    and development through investment by private enterprise
22    and would not reasonably be anticipated to be developed
23    without the adoption of the redevelopment plan.
24        (2) The municipality finds that the redevelopment plan
25    and project conform to the comprehensive plan for the
26    development of the municipality as a whole, or, for

 

 

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1    municipalities with a population of 100,000 or more,
2    regardless of when the redevelopment plan and project was
3    adopted, the redevelopment plan and project either: (i)
4    conforms to the strategic economic development or
5    redevelopment plan issued by the designated planning
6    authority of the municipality, or (ii) includes land uses
7    that have been approved by the planning commission of the
8    municipality.
9        (3) The redevelopment plan establishes the estimated
10    dates of completion of the redevelopment project and
11    retirement of obligations issued to finance redevelopment
12    project costs. Those dates may not be later than the dates
13    set forth under Section 11-74.4-3.5.
14        A municipality may by municipal ordinance amend an
15    existing redevelopment plan to conform to this paragraph
16    (3) as amended by Public Act 91-478, which municipal
17    ordinance may be adopted without further hearing or notice
18    and without complying with the procedures provided in this
19    Act pertaining to an amendment to or the initial approval
20    of a redevelopment plan and project and designation of a
21    redevelopment project area.
22        (3.5) The municipality finds, in the case of an
23    industrial park conservation area, also that the
24    municipality is a labor surplus municipality and that the
25    implementation of the redevelopment plan will reduce
26    unemployment, create new jobs and by the provision of new

 

 

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1    facilities enhance the tax base of the taxing districts
2    that extend into the redevelopment project area.
3        (4) If any incremental revenues are being utilized
4    under Section 8(a)(1) or 8(a)(2) of this Act in
5    redevelopment project areas approved by ordinance after
6    January 1, 1986, the municipality finds: (a) that the
7    redevelopment project area would not reasonably be
8    developed without the use of such incremental revenues, and
9    (b) that such incremental revenues will be exclusively
10    utilized for the development of the redevelopment project
11    area.
12        (5) If the redevelopment plan will not result in
13    displacement of residents from 10 or more inhabited
14    residential units, and the municipality certifies in the
15    plan that such displacement will not result from the plan,
16    a housing impact study need not be performed. If, however,
17    the redevelopment plan would result in the displacement of
18    residents from 10 or more inhabited residential units, or
19    if the redevelopment project area contains 75 or more
20    inhabited residential units and no certification is made,
21    then the municipality shall prepare, as part of the
22    separate feasibility report required by subsection (a) of
23    Section 11-74.4-5, a housing impact study.
24        Part I of the housing impact study shall include (i)
25    data as to whether the residential units are single family
26    or multi-family units, (ii) the number and type of rooms

 

 

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1    within the units, if that information is available, (iii)
2    whether the units are inhabited or uninhabited, as
3    determined not less than 45 days before the date that the
4    ordinance or resolution required by subsection (a) of
5    Section 11-74.4-5 is passed, and (iv) data as to the racial
6    and ethnic composition of the residents in the inhabited
7    residential units. The data requirement as to the racial
8    and ethnic composition of the residents in the inhabited
9    residential units shall be deemed to be fully satisfied by
10    data from the most recent federal census.
11        Part II of the housing impact study shall identify the
12    inhabited residential units in the proposed redevelopment
13    project area that are to be or may be removed. If inhabited
14    residential units are to be removed, then the housing
15    impact study shall identify (i) the number and location of
16    those units that will or may be removed, (ii) the
17    municipality's plans for relocation assistance for those
18    residents in the proposed redevelopment project area whose
19    residences are to be removed, (iii) the availability of
20    replacement housing for those residents whose residences
21    are to be removed, and shall identify the type, location,
22    and cost of the housing, and (iv) the type and extent of
23    relocation assistance to be provided.
24        (6) On and after November 1, 1999, the housing impact
25    study required by paragraph (5) shall be incorporated in
26    the redevelopment plan for the redevelopment project area.

 

 

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1        (7) On and after November 1, 1999, no redevelopment
2    plan shall be adopted, nor an existing plan amended, nor
3    shall residential housing that is occupied by households of
4    low-income and very low-income persons in currently
5    existing redevelopment project areas be removed after
6    November 1, 1999 unless the redevelopment plan provides,
7    with respect to inhabited housing units that are to be
8    removed for households of low-income and very low-income
9    persons, affordable housing and relocation assistance not
10    less than that which would be provided under the federal
11    Uniform Relocation Assistance and Real Property
12    Acquisition Policies Act of 1970 and the regulations under
13    that Act, including the eligibility criteria. Affordable
14    housing may be either existing or newly constructed
15    housing. For purposes of this paragraph (7), "low-income
16    households", "very low-income households", and "affordable
17    housing" have the meanings set forth in the Illinois
18    Affordable Housing Act. The municipality shall make a good
19    faith effort to ensure that this affordable housing is
20    located in or near the redevelopment project area within
21    the municipality.
22        (8) On and after November 1, 1999, if, after the
23    adoption of the redevelopment plan for the redevelopment
24    project area, any municipality desires to amend its
25    redevelopment plan to remove more inhabited residential
26    units than specified in its original redevelopment plan,

 

 

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1    that change shall be made in accordance with the procedures
2    in subsection (c) of Section 11-74.4-5.
3        (9) For redevelopment project areas designated prior
4    to November 1, 1999, the redevelopment plan may be amended
5    without further joint review board meeting or hearing,
6    provided that the municipality shall give notice of any
7    such changes by mail to each affected taxing district and
8    registrant on the interested party registry, to authorize
9    the municipality to expend tax increment revenues for
10    redevelopment project costs defined by paragraphs (5) and
11    (7.5), subparagraphs (E) and (F) of paragraph (11), and
12    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
13    long as the changes do not increase the total estimated
14    redevelopment project costs set out in the redevelopment
15    plan by more than 5% after adjustment for inflation from
16    the date the plan was adopted.
17    (o) "Redevelopment project" means any public and private
18development project in furtherance of the objectives of a
19redevelopment plan. On and after November 1, 1999 (the
20effective date of Public Act 91-478), no redevelopment plan may
21be approved or amended that includes the development of vacant
22land (i) with a golf course and related clubhouse and other
23facilities or (ii) designated by federal, State, county, or
24municipal government as public land for outdoor recreational
25activities or for nature preserves and used for that purpose
26within 5 years prior to the adoption of the redevelopment plan.

 

 

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1For the purpose of this subsection, "recreational activities"
2is limited to mean camping and hunting.
3    (p) "Redevelopment project area" means an area designated
4by the municipality, which is not less in the aggregate than 1
51/2 acres and in respect to which the municipality has made a
6finding that there exist conditions which cause the area to be
7classified as an industrial park conservation area or a
8blighted area or a conservation area, or a combination of both
9blighted areas and conservation areas.
10    (p-1) Notwithstanding any provision of this Act to the
11contrary, on and after August 25, 2009 (the effective date of
12Public Act 96-680), a redevelopment project area may include
13areas within a one-half mile radius of an existing or proposed
14Regional Transportation Authority Suburban Transit Access
15Route (STAR Line) station without a finding that the area is
16classified as an industrial park conservation area, a blighted
17area, a conservation area, or a combination thereof, but only
18if the municipality receives unanimous consent from the joint
19review board created to review the proposed redevelopment
20project area.
21    (q) "Redevelopment project costs", except for
22redevelopment project areas created pursuant to subsection
23(p-1), means and includes the sum total of all reasonable or
24necessary costs incurred or estimated to be incurred, and any
25such costs incidental to a redevelopment plan and a
26redevelopment project. Such costs include, without limitation,

 

 

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1the following:
2        (1) Costs of studies, surveys, development of plans,
3    and specifications, implementation and administration of
4    the redevelopment plan including but not limited to staff
5    and professional service costs for architectural,
6    engineering, legal, financial, planning or other services,
7    provided however that no charges for professional services
8    may be based on a percentage of the tax increment
9    collected; except that on and after November 1, 1999 (the
10    effective date of Public Act 91-478), no contracts for
11    professional services, excluding architectural and
12    engineering services, may be entered into if the terms of
13    the contract extend beyond a period of 3 years. In
14    addition, "redevelopment project costs" shall not include
15    lobbying expenses. After consultation with the
16    municipality, each tax increment consultant or advisor to a
17    municipality that plans to designate or has designated a
18    redevelopment project area shall inform the municipality
19    in writing of any contracts that the consultant or advisor
20    has entered into with entities or individuals that have
21    received, or are receiving, payments financed by tax
22    increment revenues produced by the redevelopment project
23    area with respect to which the consultant or advisor has
24    performed, or will be performing, service for the
25    municipality. This requirement shall be satisfied by the
26    consultant or advisor before the commencement of services

 

 

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

 

 

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

 

 

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1    the implementation of the redevelopment plan;
2        (5) Costs of job training and retraining projects,
3    including the cost of "welfare to work" programs
4    implemented by businesses located within the redevelopment
5    project area;
6        (6) Financing costs, including but not limited to all
7    necessary and incidental expenses related to the issuance
8    of obligations and which may include payment of interest on
9    any obligations issued hereunder including interest
10    accruing during the estimated period of construction of any
11    redevelopment project for which such obligations are
12    issued and for not exceeding 36 months thereafter and
13    including reasonable reserves related thereto;
14        (7) To the extent the municipality by written agreement
15    accepts and approves the same, all or a portion of a taxing
16    district's capital costs resulting from the redevelopment
17    project necessarily incurred or to be incurred within a
18    taxing district in furtherance of the objectives of the
19    redevelopment plan and project.
20        (7.5) For redevelopment project areas designated (or
21    redevelopment project areas amended to add or increase the
22    number of tax-increment-financing assisted housing units)
23    on or after November 1, 1999, an elementary, secondary, or
24    unit school district's increased costs attributable to
25    assisted housing units located within the redevelopment
26    project area for which the developer or redeveloper

 

 

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1    receives financial assistance through an agreement with
2    the municipality or because the municipality incurs the
3    cost of necessary infrastructure improvements within the
4    boundaries of the assisted housing sites necessary for the
5    completion of that housing as authorized by this Act, and
6    which costs shall be paid by the municipality from the
7    Special Tax Allocation Fund when the tax increment revenue
8    is received as a result of the assisted housing units and
9    shall be calculated annually as follows:
10            (A) for foundation districts, excluding any school
11        district in a municipality with a population in excess
12        of 1,000,000, by multiplying the district's increase
13        in attendance resulting from the net increase in new
14        students enrolled in that school district who reside in
15        housing units within the redevelopment project area
16        that have received financial assistance through an
17        agreement with the municipality or because the
18        municipality incurs the cost of necessary
19        infrastructure improvements within the boundaries of
20        the housing sites necessary for the completion of that
21        housing as authorized by this Act since the designation
22        of the redevelopment project area by the most recently
23        available per capita tuition cost as defined in Section
24        10-20.12a of the School Code less any increase in
25        general State aid as defined in Section 18-8.05 of the
26        School Code or primary State aid as defined in Section

 

 

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1        18-8.15 of the School Code attributable to these added
2        new students subject to the following annual
3        limitations:
4                (i) for unit school districts with a district
5            average 1995-96 Per Capita Tuition Charge of less
6            than $5,900, no more than 25% of the total amount
7            of property tax increment revenue produced by
8            those housing units that have received tax
9            increment finance assistance under this Act;
10                (ii) for elementary school districts with a
11            district average 1995-96 Per Capita Tuition Charge
12            of less than $5,900, no more than 17% of the total
13            amount of property tax increment revenue produced
14            by those housing units that have received tax
15            increment finance assistance under this Act; and
16                (iii) for secondary school districts with a
17            district average 1995-96 Per Capita Tuition Charge
18            of less than $5,900, no more than 8% of the total
19            amount of property tax increment revenue produced
20            by those housing units that have received tax
21            increment finance assistance under this Act.
22            (B) For alternate method districts, flat grant
23        districts, and foundation districts with a district
24        average 1995-96 Per Capita Tuition Charge equal to or
25        more than $5,900, excluding any school district with a
26        population in excess of 1,000,000, by multiplying the

 

 

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1        district's increase in attendance resulting from the
2        net increase in new students enrolled in that school
3        district who reside in housing units within the
4        redevelopment project area that have received
5        financial assistance through an agreement with the
6        municipality or because the municipality incurs the
7        cost of necessary infrastructure improvements within
8        the boundaries of the housing sites necessary for the
9        completion of that housing as authorized by this Act
10        since the designation of the redevelopment project
11        area by the most recently available per capita tuition
12        cost as defined in Section 10-20.12a of the School Code
13        less any increase in general state aid as defined in
14        Section 18-8.05 of the School Code or primary State aid
15        as defined in Section 18-8.15 of the School Code
16        attributable to these added new students subject to the
17        following annual limitations:
18                (i) for unit school districts, no more than 40%
19            of the total amount of property tax increment
20            revenue produced by those housing units that have
21            received tax increment finance assistance under
22            this Act;
23                (ii) for elementary school districts, no more
24            than 27% of the total amount of property tax
25            increment revenue produced by those housing units
26            that have received tax increment finance

 

 

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1            assistance under this Act; and
2                (iii) for secondary school districts, no more
3            than 13% of the total amount of property tax
4            increment revenue produced by those housing units
5            that have received tax increment finance
6            assistance under this Act.
7            (C) For any school district in a municipality with
8        a population in excess of 1,000,000, the following
9        restrictions shall apply to the reimbursement of
10        increased costs under this paragraph (7.5):
11                (i) no increased costs shall be reimbursed
12            unless the school district certifies that each of
13            the schools affected by the assisted housing
14            project is at or over its student capacity;
15                (ii) the amount reimbursable shall be reduced
16            by the value of any land donated to the school
17            district by the municipality or developer, and by
18            the value of any physical improvements made to the
19            schools by the municipality or developer; and
20                (iii) the amount reimbursed may not affect
21            amounts otherwise obligated by the terms of any
22            bonds, notes, or other funding instruments, or the
23            terms of any redevelopment agreement.
24        Any school district seeking payment under this
25        paragraph (7.5) shall, after July 1 and before
26        September 30 of each year, provide the municipality

 

 

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

 

 

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1    district by the municipality from the Special Tax
2    Allocation Fund when the tax increment revenue is received
3    as a result of the assisted housing units. This paragraph
4    (7.7) applies only if (i) the library district is located
5    in a county that is subject to the Property Tax Extension
6    Limitation Law or (ii) the library district is not located
7    in a county that is subject to the Property Tax Extension
8    Limitation Law but the district is prohibited by any other
9    law from increasing its tax levy rate without a prior voter
10    referendum.
11        The amount paid to a library district under this
12    paragraph (7.7) shall be calculated by multiplying (i) the
13    net increase in the number of persons eligible to obtain a
14    library card in that district who reside in housing units
15    within the redevelopment project area that have received
16    financial assistance through an agreement with the
17    municipality or because the municipality incurs the cost of
18    necessary infrastructure improvements within the
19    boundaries of the housing sites necessary for the
20    completion of that housing as authorized by this Act since
21    the designation of the redevelopment project area by (ii)
22    the per-patron cost of providing library services so long
23    as it does not exceed $120. The per-patron cost shall be
24    the Total Operating Expenditures Per Capita for the library
25    in the previous fiscal year. The municipality may deduct
26    from the amount that it must pay to a library district

 

 

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1    under this paragraph any amount that it has voluntarily
2    paid to the library district from the tax increment
3    revenue. The amount paid to a library district under this
4    paragraph (7.7) shall be no more than 2% of the amount
5    produced by the assisted housing units and deposited into
6    the Special Tax Allocation Fund.
7        A library district is not eligible for any payment
8    under this paragraph (7.7) unless the library district has
9    experienced an increase in the number of patrons from the
10    municipality that created the tax-increment-financing
11    district since the designation of the redevelopment
12    project area.
13        Any library district seeking payment under this
14    paragraph (7.7) shall, after July 1 and before September 30
15    of each year, provide the municipality with convincing
16    evidence to support its claim for reimbursement before the
17    municipality shall be required to approve or make the
18    payment to the library district. If the library district
19    fails to provide the information during this period in any
20    year, it shall forfeit any claim to reimbursement for that
21    year. Library districts may adopt a resolution waiving the
22    right to all or a portion of the reimbursement otherwise
23    required by this paragraph (7.7). By acceptance of such
24    reimbursement, the library district shall forfeit any
25    right to directly or indirectly set aside, modify, or
26    contest in any manner whatsoever the establishment of the

 

 

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1    redevelopment project area or projects;
2        (8) Relocation costs to the extent that a municipality
3    determines that relocation costs shall be paid or is
4    required to make payment of relocation costs by federal or
5    State law or in order to satisfy subparagraph (7) of
6    subsection (n);
7        (9) Payment in lieu of taxes;
8        (10) Costs of job training, retraining, advanced
9    vocational education or career education, including but
10    not limited to courses in occupational, semi-technical or
11    technical fields leading directly to employment, incurred
12    by one or more taxing districts, provided that such costs
13    (i) are related to the establishment and maintenance of
14    additional job training, advanced vocational education or
15    career education programs for persons employed or to be
16    employed by employers located in a redevelopment project
17    area; and (ii) when incurred by a taxing district or taxing
18    districts other than the municipality, are set forth in a
19    written agreement by or among the municipality and the
20    taxing district or taxing districts, which agreement
21    describes the program to be undertaken, including but not
22    limited to the number of employees to be trained, a
23    description of the training and services to be provided,
24    the number and type of positions available or to be
25    available, itemized costs of the program and sources of
26    funds to pay for the same, and the term of the agreement.

 

 

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

 

 

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1        to this Act; and
2            (E) the cost limits set forth in subparagraphs (B)
3        and (D) of paragraph (11) shall be modified for the
4        financing of rehabilitated or new housing units for
5        low-income households and very low-income households,
6        as defined in Section 3 of the Illinois Affordable
7        Housing Act. The percentage of 75% shall be substituted
8        for 30% in subparagraphs (B) and (D) of paragraph (11).
9            (F) Instead of the eligible costs provided by
10        subparagraphs (B) and (D) of paragraph (11), as
11        modified by this subparagraph, and notwithstanding any
12        other provisions of this Act to the contrary, the
13        municipality may pay from tax increment revenues up to
14        50% of the cost of construction of new housing units to
15        be occupied by low-income households and very
16        low-income households as defined in Section 3 of the
17        Illinois Affordable Housing Act. The cost of
18        construction of those units may be derived from the
19        proceeds of bonds issued by the municipality under this
20        Act or other constitutional or statutory authority or
21        from other sources of municipal revenue that may be
22        reimbursed from tax increment revenues or the proceeds
23        of bonds issued to finance the construction of that
24        housing.
25            The eligible costs provided under this
26        subparagraph (F) of paragraph (11) shall be an eligible

 

 

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1        cost for the construction, renovation, and
2        rehabilitation of all low and very low-income housing
3        units, as defined in Section 3 of the Illinois
4        Affordable Housing Act, within the redevelopment
5        project area. If the low and very low-income units are
6        part of a residential redevelopment project that
7        includes units not affordable to low and very
8        low-income households, only the low and very
9        low-income units shall be eligible for benefits under
10        subparagraph (F) of paragraph (11). The standards for
11        maintaining the occupancy by low-income households and
12        very low-income households, as defined in Section 3 of
13        the Illinois Affordable Housing Act, of those units
14        constructed with eligible costs made available under
15        the provisions of this subparagraph (F) of paragraph
16        (11) shall be established by guidelines adopted by the
17        municipality. The responsibility for annually
18        documenting the initial occupancy of the units by
19        low-income households and very low-income households,
20        as defined in Section 3 of the Illinois Affordable
21        Housing Act, shall be that of the then current owner of
22        the property. For ownership units, the guidelines will
23        provide, at a minimum, for a reasonable recapture of
24        funds, or other appropriate methods designed to
25        preserve the original affordability of the ownership
26        units. For rental units, the guidelines will provide,

 

 

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1        at a minimum, for the affordability of rent to low and
2        very low-income households. As units become available,
3        they shall be rented to income-eligible tenants. The
4        municipality may modify these guidelines from time to
5        time; the guidelines, however, shall be in effect for
6        as long as tax increment revenue is being used to pay
7        for costs associated with the units or for the
8        retirement of bonds issued to finance the units or for
9        the life of the redevelopment project area, whichever
10        is later.
11        (11.5) If the redevelopment project area is located
12    within a municipality with a population of more than
13    100,000, the cost of day care services for children of
14    employees from low-income families working for businesses
15    located within the redevelopment project area and all or a
16    portion of the cost of operation of day care centers
17    established by redevelopment project area businesses to
18    serve employees from low-income families working in
19    businesses located in the redevelopment project area. For
20    the purposes of this paragraph, "low-income families"
21    means families whose annual income does not exceed 80% of
22    the municipal, county, or regional median income, adjusted
23    for family size, as the annual income and municipal,
24    county, or regional median income are determined from time
25    to time by the United States Department of Housing and
26    Urban Development.

 

 

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1        (12) Unless explicitly stated herein the cost of
2    construction of new privately-owned buildings shall not be
3    an eligible redevelopment project cost.
4        (13) After November 1, 1999 (the effective date of
5    Public Act 91-478), none of the redevelopment project costs
6    enumerated in this subsection shall be eligible
7    redevelopment project costs if those costs would provide
8    direct financial support to a retail entity initiating
9    operations in the redevelopment project area while
10    terminating operations at another Illinois location within
11    10 miles of the redevelopment project area but outside the
12    boundaries of the redevelopment project area municipality.
13    For purposes of this paragraph, termination means a closing
14    of a retail operation that is directly related to the
15    opening of the same operation or like retail entity owned
16    or operated by more than 50% of the original ownership in a
17    redevelopment project area, but it does not mean closing an
18    operation for reasons beyond the control of the retail
19    entity, as documented by the retail entity, subject to a
20    reasonable finding by the municipality that the current
21    location contained inadequate space, had become
22    economically obsolete, or was no longer a viable location
23    for the retailer or serviceman.
24        (14) No cost shall be a redevelopment project cost in a
25    redevelopment project area if used to demolish, remove, or
26    substantially modify a historic resource, after August 26,

 

 

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

 

 

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1boundaries which are determined pursuant to subsection (9) of
2Section 11-74.4-8a of this Act. The Department of Revenue shall
3certify pursuant to subsection (9) of Section 11-74.4-8a the
4appropriate boundaries eligible for the determination of State
5Sales Tax Increment.
6    (s) "State Sales Tax Increment" means an amount equal to
7the increase in the aggregate amount of taxes paid by retailers
8and servicemen, other than retailers and servicemen subject to
9the Public Utilities Act, on transactions at places of business
10located within a State Sales Tax Boundary pursuant to the
11Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
12Tax Act, and the Service Occupation Tax Act, except such
13portion of such increase that is paid into the State and Local
14Sales Tax Reform Fund, the Local Government Distributive Fund,
15the Local Government Tax Fund and the County and Mass Transit
16District Fund, for as long as State participation exists, over
17and above the Initial Sales Tax Amounts, Adjusted Initial Sales
18Tax Amounts or the Revised Initial Sales Tax Amounts for such
19taxes as certified by the Department of Revenue and paid under
20those Acts by retailers and servicemen on transactions at
21places of business located within the State Sales Tax Boundary
22during the base year which shall be the calendar year
23immediately prior to the year in which the municipality adopted
24tax increment allocation financing, less 3.0% of such amounts
25generated under the Retailers' Occupation Tax Act, Use Tax Act
26and Service Use Tax Act and the Service Occupation Tax Act,

 

 

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1which sum shall be appropriated to the Department of Revenue to
2cover its costs of administering and enforcing this Section.
3For purposes of computing the aggregate amount of such taxes
4for base years occurring prior to 1985, the Department of
5Revenue shall compute the Initial Sales Tax Amount for such
6taxes and deduct therefrom an amount equal to 4% of the
7aggregate amount of taxes per year for each year the base year
8is prior to 1985, but not to exceed a total deduction of 12%.
9The amount so determined shall be known as the "Adjusted
10Initial Sales Tax Amount". For purposes of determining the
11State Sales Tax Increment the Department of Revenue shall for
12each period subtract from the tax amounts received from
13retailers and servicemen on transactions located in the State
14Sales Tax Boundary, the certified Initial Sales Tax Amounts,
15Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
16Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
17the Service Use Tax Act and the Service Occupation Tax Act. For
18the State Fiscal Year 1989 this calculation shall be made by
19utilizing the calendar year 1987 to determine the tax amounts
20received. For the State Fiscal Year 1990, this calculation
21shall be made by utilizing the period from January 1, 1988,
22until September 30, 1988, to determine the tax amounts received
23from retailers and servicemen, which shall have deducted
24therefrom nine-twelfths of the certified Initial Sales Tax
25Amounts, Adjusted Initial Sales Tax Amounts or the Revised
26Initial Sales Tax Amounts as appropriate. For the State Fiscal

 

 

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1Year 1991, this calculation shall be made by utilizing the
2period from October 1, 1988, until June 30, 1989, to determine
3the tax amounts received from retailers and servicemen, which
4shall have deducted therefrom nine-twelfths of the certified
5Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
6Amounts or the Revised Initial Sales Tax Amounts as
7appropriate. For every State Fiscal Year thereafter, the
8applicable period shall be the 12 months beginning July 1 and
9ending on June 30, to determine the tax amounts received which
10shall have deducted therefrom the certified Initial Sales Tax
11Amounts, Adjusted Initial Sales Tax Amounts or the Revised
12Initial Sales Tax Amounts. Municipalities intending to receive
13a distribution of State Sales Tax Increment must report a list
14of retailers to the Department of Revenue by October 31, 1988
15and by July 31, of each year thereafter.
16    (t) "Taxing districts" means counties, townships, cities
17and incorporated towns and villages, school, road, park,
18sanitary, mosquito abatement, forest preserve, public health,
19fire protection, river conservancy, tuberculosis sanitarium
20and any other municipal corporations or districts with the
21power to levy taxes.
22    (u) "Taxing districts' capital costs" means those costs of
23taxing districts for capital improvements that are found by the
24municipal corporate authorities to be necessary and directly
25result from the redevelopment project.
26    (v) As used in subsection (a) of Section 11-74.4-3 of this

 

 

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1Act, "vacant land" means any parcel or combination of parcels
2of real property without industrial, commercial, and
3residential buildings which has not been used for commercial
4agricultural purposes within 5 years prior to the designation
5of the redevelopment project area, unless the parcel is
6included in an industrial park conservation area or the parcel
7has been subdivided; provided that if the parcel was part of a
8larger tract that has been divided into 3 or more smaller
9tracts that were accepted for recording during the period from
101950 to 1990, then the parcel shall be deemed to have been
11subdivided, and all proceedings and actions of the municipality
12taken in that connection with respect to any previously
13approved or designated redevelopment project area or amended
14redevelopment project area are hereby validated and hereby
15declared to be legally sufficient for all purposes of this Act.
16For purposes of this Section and only for land subject to the
17subdivision requirements of the Plat Act, land is subdivided
18when the original plat of the proposed Redevelopment Project
19Area or relevant portion thereof has been properly certified,
20acknowledged, approved, and recorded or filed in accordance
21with the Plat Act and a preliminary plat, if any, for any
22subsequent phases of the proposed Redevelopment Project Area or
23relevant portion thereof has been properly approved and filed
24in accordance with the applicable ordinance of the
25municipality.
26    (w) "Annual Total Increment" means the sum of each

 

 

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1municipality's annual Net Sales Tax Increment and each
2municipality's annual Net Utility Tax Increment. The ratio of
3the Annual Total Increment of each municipality to the Annual
4Total Increment for all municipalities, as most recently
5calculated by the Department, shall determine the proportional
6shares of the Illinois Tax Increment Fund to be distributed to
7each municipality.
8    (x) "LEED certified" means any certification level of
9construction elements by a qualified Leadership in Energy and
10Environmental Design Accredited Professional as determined by
11the U.S. Green Building Council.
12    (y) "Green Globes certified" means any certification level
13of construction elements by a qualified Green Globes
14Professional as determined by the Green Building Initiative.
15(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
1696-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
171-1-12.)
 
18    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
19    Sec. 11-74.4-8. Tax increment allocation financing. A
20municipality may not adopt tax increment financing in a
21redevelopment project area after the effective date of this
22amendatory Act of 1997 that will encompass an area that is
23currently included in an enterprise zone created under the
24Illinois Enterprise Zone Act unless that municipality,
25pursuant to Section 5.4 of the Illinois Enterprise Zone Act,

 

 

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1amends the enterprise zone designating ordinance to limit the
2eligibility for tax abatements as provided in Section 5.4.1 of
3the Illinois Enterprise Zone Act. A municipality, at the time a
4redevelopment project area is designated, may adopt tax
5increment allocation financing by passing an ordinance
6providing that the ad valorem taxes, if any, arising from the
7levies upon taxable real property in such redevelopment project
8area by taxing districts and tax rates determined in the manner
9provided in paragraph (c) of Section 11-74.4-9 each year after
10the effective date of the ordinance until redevelopment project
11costs and all municipal obligations financing redevelopment
12project costs incurred under this Division have been paid shall
13be divided as follows:
14    (a) That portion of taxes levied upon each taxable lot,
15block, tract or parcel of real property which is attributable
16to the lower of the current equalized assessed value or the
17initial equalized assessed value of each such taxable lot,
18block, tract or parcel of real property in the redevelopment
19project area shall be allocated to and when collected shall be
20paid by the county collector to the respective affected taxing
21districts in the manner required by law in the absence of the
22adoption of tax increment allocation financing.
23    (b) Except from a tax levied by a township to retire bonds
24issued to satisfy court-ordered damages, that portion, if any,
25of such taxes which is attributable to the increase in the
26current equalized assessed valuation of each taxable lot,

 

 

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1block, tract or parcel of real property in the redevelopment
2project area over and above the initial equalized assessed
3value of each property in the project area shall be allocated
4to and when collected shall be paid to the municipal treasurer
5who shall deposit said taxes into a special fund called the
6special tax allocation fund of the municipality for the purpose
7of paying redevelopment project costs and obligations incurred
8in the payment thereof. In any county with a population of
93,000,000 or more that has adopted a procedure for collecting
10taxes that provides for one or more of the installments of the
11taxes to be billed and collected on an estimated basis, the
12municipal treasurer shall be paid for deposit in the special
13tax allocation fund of the municipality, from the taxes
14collected from estimated bills issued for property in the
15redevelopment project area, the difference between the amount
16actually collected from each taxable lot, block, tract, or
17parcel of real property within the redevelopment project area
18and an amount determined by multiplying the rate at which taxes
19were last extended against the taxable lot, block, track, or
20parcel of real property in the manner provided in subsection
21(c) of Section 11-74.4-9 by the initial equalized assessed
22value of the property divided by the number of installments in
23which real estate taxes are billed and collected within the
24county; provided that the payments on or before December 31,
251999 to a municipal treasurer shall be made only if each of the
26following conditions are met:

 

 

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1        (1) The total equalized assessed value of the
2    redevelopment project area as last determined was not less
3    than 175% of the total initial equalized assessed value.
4        (2) Not more than 50% of the total equalized assessed
5    value of the redevelopment project area as last determined
6    is attributable to a piece of property assigned a single
7    real estate index number.
8        (3) The municipal clerk has certified to the county
9    clerk that the municipality has issued its obligations to
10    which there has been pledged the incremental property taxes
11    of the redevelopment project area or taxes levied and
12    collected on any or all property in the municipality or the
13    full faith and credit of the municipality to pay or secure
14    payment for all or a portion of the redevelopment project
15    costs. The certification shall be filed annually no later
16    than September 1 for the estimated taxes to be distributed
17    in the following year; however, for the year 1992 the
18    certification shall be made at any time on or before March
19    31, 1992.
20        (4) The municipality has not requested that the total
21    initial equalized assessed value of real property be
22    adjusted as provided in subsection (b) of Section
23    11-74.4-9.
24    The conditions of paragraphs (1) through (4) do not apply
25after December 31, 1999 to payments to a municipal treasurer
26made by a county with 3,000,000 or more inhabitants that has

 

 

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1adopted an estimated billing procedure for collecting taxes. If
2a county that has adopted the estimated billing procedure makes
3an erroneous overpayment of tax revenue to the municipal
4treasurer, then the county may seek a refund of that
5overpayment. The county shall send the municipal treasurer a
6notice of liability for the overpayment on or before the
7mailing date of the next real estate tax bill within the
8county. The refund shall be limited to the amount of the
9overpayment.
10    It is the intent of this Division that after the effective
11date of this amendatory Act of 1988 a municipality's own ad
12valorem tax arising from levies on taxable real property be
13included in the determination of incremental revenue in the
14manner provided in paragraph (c) of Section 11-74.4-9. If the
15municipality does not extend such a tax, it shall annually
16deposit in the municipality's Special Tax Increment Fund an
17amount equal to 10% of the total contributions to the fund from
18all other taxing districts in that year. The annual 10% deposit
19required by this paragraph shall be limited to the actual
20amount of municipally produced incremental tax revenues
21available to the municipality from taxpayers located in the
22redevelopment project area in that year if: (a) the plan for
23the area restricts the use of the property primarily to
24industrial purposes, (b) the municipality establishing the
25redevelopment project area is a home-rule community with a 1990
26population of between 25,000 and 50,000, (c) the municipality

 

 

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1is wholly located within a county with a 1990 population of
2over 750,000 and (d) the redevelopment project area was
3established by the municipality prior to June 1, 1990. This
4payment shall be in lieu of a contribution of ad valorem taxes
5on real property. If no such payment is made, any redevelopment
6project area of the municipality shall be dissolved.
7    If a municipality has adopted tax increment allocation
8financing by ordinance and the County Clerk thereafter
9certifies the "total initial equalized assessed value as
10adjusted" of the taxable real property within such
11redevelopment project area in the manner provided in paragraph
12(b) of Section 11-74.4-9, each year after the date of the
13certification of the total initial equalized assessed value as
14adjusted until redevelopment project costs and all municipal
15obligations financing redevelopment project costs have been
16paid the ad valorem taxes, if any, arising from the levies upon
17the taxable real property in such redevelopment project area by
18taxing districts and tax rates determined in the manner
19provided in paragraph (c) of Section 11-74.4-9 shall be divided
20as follows:
21        (1) That portion of the taxes levied upon each taxable
22    lot, block, tract or parcel of real property which is
23    attributable to the lower of the current equalized assessed
24    value or "current equalized assessed value as adjusted" or
25    the initial equalized assessed value of each such taxable
26    lot, block, tract, or parcel of real property existing at

 

 

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1    the time tax increment financing was adopted, minus the
2    total current homestead exemptions under Article 15 of the
3    Property Tax Code in the redevelopment project area shall
4    be allocated to and when collected shall be paid by the
5    county collector to the respective affected taxing
6    districts in the manner required by law in the absence of
7    the adoption of tax increment allocation financing.
8        (2) That portion, if any, of such taxes which is
9    attributable to the increase in the current equalized
10    assessed valuation of each taxable lot, block, tract, or
11    parcel of real property in the redevelopment project area,
12    over and above the initial equalized assessed value of each
13    property existing at the time tax increment financing was
14    adopted, minus the total current homestead exemptions
15    pertaining to each piece of property provided by Article 15
16    of the Property Tax Code in the redevelopment project area,
17    shall be allocated to and when collected shall be paid to
18    the municipal Treasurer, who shall deposit said taxes into
19    a special fund called the special tax allocation fund of
20    the municipality for the purpose of paying redevelopment
21    project costs and obligations incurred in the payment
22    thereof.
23    The municipality may pledge in the ordinance the funds in
24and to be deposited in the special tax allocation fund for the
25payment of such costs and obligations. No part of the current
26equalized assessed valuation of each property in the

 

 

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1redevelopment project area attributable to any increase above
2the total initial equalized assessed value, or the total
3initial equalized assessed value as adjusted, of such
4properties shall be used in calculating the general State
5school aid formula, provided for in Section 18-8 of the School
6Code, or the primary State aid formula, provided for in Section
718-8.15 of the School Code, until such time as all
8redevelopment project costs have been paid as provided for in
9this Section.
10    Whenever a municipality issues bonds for the purpose of
11financing redevelopment project costs, such municipality may
12provide by ordinance for the appointment of a trustee, which
13may be any trust company within the State, and for the
14establishment of such funds or accounts to be maintained by
15such trustee as the municipality shall deem necessary to
16provide for the security and payment of the bonds. If such
17municipality provides for the appointment of a trustee, such
18trustee shall be considered the assignee of any payments
19assigned by the municipality pursuant to such ordinance and
20this Section. Any amounts paid to such trustee as assignee
21shall be deposited in the funds or accounts established
22pursuant to such trust agreement, and shall be held by such
23trustee in trust for the benefit of the holders of the bonds,
24and such holders shall have a lien on and a security interest
25in such funds or accounts so long as the bonds remain
26outstanding and unpaid. Upon retirement of the bonds, the

 

 

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1trustee shall pay over any excess amounts held to the
2municipality for deposit in the special tax allocation fund.
3    When such redevelopment projects costs, including without
4limitation all municipal obligations financing redevelopment
5project costs incurred under this Division, have been paid, all
6surplus funds then remaining in the special tax allocation fund
7shall be distributed by being paid by the municipal treasurer
8to the Department of Revenue, the municipality and the county
9collector; first to the Department of Revenue and the
10municipality in direct proportion to the tax incremental
11revenue received from the State and the municipality, but not
12to exceed the total incremental revenue received from the State
13or the municipality less any annual surplus distribution of
14incremental revenue previously made; with any remaining funds
15to be paid to the County Collector who shall immediately
16thereafter pay said funds to the taxing districts in the
17redevelopment project area in the same manner and proportion as
18the most recent distribution by the county collector to the
19affected districts of real property taxes from real property in
20the redevelopment project area.
21    Upon the payment of all redevelopment project costs, the
22retirement of obligations, the distribution of any excess
23monies pursuant to this Section, and final closing of the books
24and records of the redevelopment project area, the municipality
25shall adopt an ordinance dissolving the special tax allocation
26fund for the redevelopment project area and terminating the

 

 

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1designation of the redevelopment project area as a
2redevelopment project area. Title to real or personal property
3and public improvements acquired by or for the municipality as
4a result of the redevelopment project and plan shall vest in
5the municipality when acquired and shall continue to be held by
6the municipality after the redevelopment project area has been
7terminated. Municipalities shall notify affected taxing
8districts prior to November 1 if the redevelopment project area
9is to be terminated by December 31 of that same year. If a
10municipality extends estimated dates of completion of a
11redevelopment project and retirement of obligations to finance
12a redevelopment project, as allowed by this amendatory Act of
131993, that extension shall not extend the property tax
14increment allocation financing authorized by this Section.
15Thereafter the rates of the taxing districts shall be extended
16and taxes levied, collected and distributed in the manner
17applicable in the absence of the adoption of tax increment
18allocation financing.
19    Nothing in this Section shall be construed as relieving
20property in such redevelopment project areas from being
21assessed as provided in the Property Tax Code or as relieving
22owners of such property from paying a uniform rate of taxes, as
23required by Section 4 of Article IX of the Illinois
24Constitution.
25(Source: P.A. 98-463, eff. 8-16-13.)
 

 

 

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1    (65 ILCS 5/11-74.6-35)
2    Sec. 11-74.6-35. Ordinance for tax increment allocation
3financing.
4    (a) A municipality, at the time a redevelopment project
5area is designated, may adopt tax increment allocation
6financing by passing an ordinance providing that the ad valorem
7taxes, if any, arising from the levies upon taxable real
8property within the redevelopment project area by taxing
9districts and tax rates determined in the manner provided in
10subsection (b) of Section 11-74.6-40 each year after the
11effective date of the ordinance until redevelopment project
12costs and all municipal obligations financing redevelopment
13project costs incurred under this Act have been paid shall be
14divided as follows:
15        (1) That portion of the taxes levied upon each taxable
16    lot, block, tract or parcel of real property that is
17    attributable to the lower of the current equalized assessed
18    value or the initial equalized assessed value or the
19    updated initial equalized assessed value of each taxable
20    lot, block, tract or parcel of real property in the
21    redevelopment project area shall be allocated to and when
22    collected shall be paid by the county collector to the
23    respective affected taxing districts in the manner
24    required by law without regard to the adoption of tax
25    increment allocation financing.
26        (2) That portion, if any, of those taxes that is

 

 

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1    attributable to the increase in the current equalized
2    assessed value of each taxable lot, block, tract or parcel
3    of real property in the redevelopment project area, over
4    and above the initial equalized assessed value or the
5    updated initial equalized assessed value of each property
6    in the project area, shall be allocated to and when
7    collected shall be paid by the county collector to the
8    municipal treasurer who shall deposit that portion of those
9    taxes into a special fund called the special tax allocation
10    fund of the municipality for the purpose of paying
11    redevelopment project costs and obligations incurred in
12    the payment of those costs and obligations. In any county
13    with a population of 3,000,000 or more that has adopted a
14    procedure for collecting taxes that provides for one or
15    more of the installments of the taxes to be billed and
16    collected on an estimated basis, the municipal treasurer
17    shall be paid for deposit in the special tax allocation
18    fund of the municipality, from the taxes collected from
19    estimated bills issued for property in the redevelopment
20    project area, the difference between the amount actually
21    collected from each taxable lot, block, tract, or parcel of
22    real property within the redevelopment project area and an
23    amount determined by multiplying the rate at which taxes
24    were last extended against the taxable lot, block, track,
25    or parcel of real property in the manner provided in
26    subsection (b) of Section 11-74.6-40 by the initial

 

 

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1    equalized assessed value or the updated initial equalized
2    assessed value of the property divided by the number of
3    installments in which real estate taxes are billed and
4    collected within the county, provided that the payments on
5    or before December 31, 1999 to a municipal treasurer shall
6    be made only if each of the following conditions are met:
7            (A) The total equalized assessed value of the
8        redevelopment project area as last determined was not
9        less than 175% of the total initial equalized assessed
10        value.
11            (B) Not more than 50% of the total equalized
12        assessed value of the redevelopment project area as
13        last determined is attributable to a piece of property
14        assigned a single real estate index number.
15            (C) The municipal clerk has certified to the county
16        clerk that the municipality has issued its obligations
17        to which there has been pledged the incremental
18        property taxes of the redevelopment project area or
19        taxes levied and collected on any or all property in
20        the municipality or the full faith and credit of the
21        municipality to pay or secure payment for all or a
22        portion of the redevelopment project costs. The
23        certification shall be filed annually no later than
24        September 1 for the estimated taxes to be distributed
25        in the following year.
26    The conditions of paragraphs (A) through (C) do not apply

 

 

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1after December 31, 1999 to payments to a municipal treasurer
2made by a county with 3,000,000 or more inhabitants that has
3adopted an estimated billing procedure for collecting taxes. If
4a county that has adopted the estimated billing procedure makes
5an erroneous overpayment of tax revenue to the municipal
6treasurer, then the county may seek a refund of that
7overpayment. The county shall send the municipal treasurer a
8notice of liability for the overpayment on or before the
9mailing date of the next real estate tax bill within the
10county. The refund shall be limited to the amount of the
11overpayment.
12    (b) It is the intent of this Act that a municipality's own
13ad valorem tax arising from levies on taxable real property be
14included in the determination of incremental revenue in the
15manner provided in paragraph (b) of Section 11-74.6-40.
16    (c) If a municipality has adopted tax increment allocation
17financing for a redevelopment project area by ordinance and the
18county clerk thereafter certifies the total initial equalized
19assessed value or the total updated initial equalized assessed
20value of the taxable real property within such redevelopment
21project area in the manner provided in paragraph (a) or (b) of
22Section 11-74.6-40, each year after the date of the
23certification of the total initial equalized assessed value or
24the total updated initial equalized assessed value until
25redevelopment project costs and all municipal obligations
26financing redevelopment project costs have been paid, the ad

 

 

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1valorem taxes, if any, arising from the levies upon the taxable
2real property in the redevelopment project area by taxing
3districts and tax rates determined in the manner provided in
4paragraph (b) of Section 11-74.6-40 shall be divided as
5follows:
6        (1) That portion of the taxes levied upon each taxable
7    lot, block, tract or parcel of real property that is
8    attributable to the lower of the current equalized assessed
9    value or the initial equalized assessed value, or the
10    updated initial equalized assessed value of each parcel if
11    the updated initial equalized assessed value of that parcel
12    has been certified in accordance with Section 11-74.6-40,
13    whichever has been most recently certified, of each taxable
14    lot, block, tract, or parcel of real property existing at
15    the time tax increment allocation financing was adopted in
16    the redevelopment project area, shall be allocated to and
17    when collected shall be paid by the county collector to the
18    respective affected taxing districts in the manner
19    required by law without regard to the adoption of tax
20    increment allocation financing.
21        (2) That portion, if any, of those taxes that is
22    attributable to the increase in the current equalized
23    assessed value of each taxable lot, block, tract, or parcel
24    of real property in the redevelopment project area, over
25    and above the initial equalized assessed value of each
26    property existing at the time tax increment allocation

 

 

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1    financing was adopted in the redevelopment project area, or
2    the updated initial equalized assessed value of each parcel
3    if the updated initial equalized assessed value of that
4    parcel has been certified in accordance with Section
5    11-74.6-40, shall be allocated to and when collected shall
6    be paid to the municipal treasurer, who shall deposit those
7    taxes into a special fund called the special tax allocation
8    fund of the municipality for the purpose of paying
9    redevelopment project costs and obligations incurred in
10    the payment thereof.
11    (d) The municipality may pledge in the ordinance the funds
12in and to be deposited in the special tax allocation fund for
13the payment of redevelopment project costs and obligations. No
14part of the current equalized assessed value of each property
15in the redevelopment project area attributable to any increase
16above the total initial equalized assessed value or the total
17initial updated equalized assessed value of the property, shall
18be used in calculating the general General State aid formula
19School Aid Formula, provided for in Section 18-8 of the School
20Code, or the primary State aid formula, provided for in Section
2118-8.15 of the School Code, until all redevelopment project
22costs have been paid as provided for in this Section.
23    Whenever a municipality issues bonds for the purpose of
24financing redevelopment project costs, that municipality may
25provide by ordinance for the appointment of a trustee, which
26may be any trust company within the State, and for the

 

 

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1establishment of any funds or accounts to be maintained by that
2trustee, as the municipality deems necessary to provide for the
3security and payment of the bonds. If the municipality provides
4for the appointment of a trustee, the trustee shall be
5considered the assignee of any payments assigned by the
6municipality under that ordinance and this Section. Any amounts
7paid to the trustee as assignee shall be deposited into the
8funds or accounts established under the trust agreement, and
9shall be held by the trustee in trust for the benefit of the
10holders of the bonds. The holders of those bonds shall have a
11lien on and a security interest in those funds or accounts
12while the bonds remain outstanding and unpaid. Upon retirement
13of the bonds, the trustee shall pay over any excess amounts
14held to the municipality for deposit in the special tax
15allocation fund.
16    When the redevelopment projects costs, including without
17limitation all municipal obligations financing redevelopment
18project costs incurred under this Law, have been paid, all
19surplus funds then remaining in the special tax allocation fund
20shall be distributed by being paid by the municipal treasurer
21to the municipality and the county collector; first to the
22municipality in direct proportion to the tax incremental
23revenue received from the municipality, but not to exceed the
24total incremental revenue received from the municipality,
25minus any annual surplus distribution of incremental revenue
26previously made. Any remaining funds shall be paid to the

 

 

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1county collector who shall immediately distribute that payment
2to the taxing districts in the redevelopment project area in
3the same manner and proportion as the most recent distribution
4by the county collector to the affected districts of real
5property taxes from real property situated in the redevelopment
6project area.
7    Upon the payment of all redevelopment project costs,
8retirement of obligations and the distribution of any excess
9moneys under this Section, the municipality shall adopt an
10ordinance dissolving the special tax allocation fund for the
11redevelopment project area and terminating the designation of
12the redevelopment project area as a redevelopment project area.
13Thereafter the tax levies of taxing districts shall be
14extended, collected and distributed in the same manner
15applicable before the adoption of tax increment allocation
16financing. Municipality shall notify affected taxing districts
17prior to November if the redevelopment project area is to be
18terminated by December 31 of that same year.
19    Nothing in this Section shall be construed as relieving
20property in a redevelopment project area from being assessed as
21provided in the Property Tax Code or as relieving owners of
22that property from paying a uniform rate of taxes, as required
23by Section 4 of Article IX of the Illinois Constitution.
24(Source: P.A. 91-474, eff. 11-1-99.)
 
25    Section 940. The Economic Development Project Area Tax

 

 

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1Increment Allocation Act of 1995 is amended by changing Section
250 as follows:
 
3    (65 ILCS 110/50)
4    Sec. 50. Special tax allocation fund.
5    (a) If a county clerk has certified the "total initial
6equalized assessed value" of the taxable real property within
7an economic development project area in the manner provided in
8Section 45, each year after the date of the certification by
9the county clerk of the "total initial equalized assessed
10value", until economic development project costs and all
11municipal obligations financing economic development project
12costs have been paid, the ad valorem taxes, if any, arising
13from the levies upon the taxable real property in the economic
14development project area by taxing districts and tax rates
15determined in the manner provided in subsection (b) of Section
1645 shall be divided as follows:
17        (1) That portion of the taxes levied upon each taxable
18    lot, block, tract, or parcel of real property that is
19    attributable to the lower of the current equalized assessed
20    value or the initial equalized assessed value of each
21    taxable lot, block, tract, or parcel of real property
22    existing at the time tax increment financing was adopted
23    shall be allocated to (and when collected shall be paid by
24    the county collector to) the respective affected taxing
25    districts in the manner required by law in the absence of

 

 

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1    the adoption of tax increment allocation financing.
2        (2) That portion, if any, of the taxes that is
3    attributable to the increase in the current equalized
4    assessed valuation of each taxable lot, block, tract, or
5    parcel of real property in the economic development project
6    area, over and above the initial equalized assessed value
7    of each property existing at the time tax increment
8    financing was adopted, shall be allocated to (and when
9    collected shall be paid to) the municipal treasurer, who
10    shall deposit the taxes into a special fund (called the
11    special tax allocation fund of the municipality) for the
12    purpose of paying economic development project costs and
13    obligations incurred in the payment of those costs.
14    (b) The municipality, by an ordinance adopting tax
15increment allocation financing, may pledge the monies in and to
16be deposited into the special tax allocation fund for the
17payment of obligations issued under this Act and for the
18payment of economic development project costs. No part of the
19current equalized assessed valuation of each property in the
20economic development project area attributable to any increase
21above the total initial equalized assessed value of those
22properties shall be used in calculating the general State
23school aid formula under Section 18-8 of the School Code or the
24primary State aid formula under Section 18-8.15 of the School
25Code, until all economic development projects costs have been
26paid as provided for in this Section.

 

 

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1    (c) When the economic development projects costs,
2including without limitation all municipal obligations
3financing economic development project costs incurred under
4this Act, have been paid, all surplus monies then remaining in
5the special tax allocation fund shall be distributed by being
6paid by the municipal treasurer to the county collector, who
7shall immediately pay the monies to the taxing districts having
8taxable property in the economic development project area in
9the same manner and proportion as the most recent distribution
10by the county collector to those taxing districts of real
11property taxes from real property in the economic development
12project area.
13    (d) Upon the payment of all economic development project
14costs, retirement of obligations, and distribution of any
15excess monies under this Section and not later than 23 years
16from the date of the adoption of the ordinance establishing the
17economic development project area, the municipality shall
18adopt an ordinance dissolving the special tax allocation fund
19for the economic development project area and terminating the
20designation of the economic development project area as an
21economic development project area. Thereafter, the rates of the
22taxing districts shall be extended and taxes shall be levied,
23collected, and distributed in the manner applicable in the
24absence of the adoption of tax increment allocation financing.
25    (e) Nothing in this Section shall be construed as relieving
26property in the economic development project areas from being

 

 

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1assessed as provided in the Property Tax Code or as relieving
2owners or lessees of that property from paying a uniform rate
3of taxes as required by Section 4 of Article IX of the Illinois
4Constitution.
5(Source: P.A. 98-463, eff. 8-16-13.)
 
6    Section 945. The School Code is amended by changing
7Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
81F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
92-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19,
1010-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,
1113B-50, 13B-50.10, 13B-50.15, 14-7.02, 14-7.02b, 14-7.03,
1214-13.01, 14C-1, 14C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A,
1318-4.3, 18-8.05, 18-8.10, 18-9, 18-12, 26-16, 27-8.1, 27A-9,
1427A-11, 29-5, 34-2.3, 34-8.4, 34-18, 34-18.30, 34-43.1, and
1534-53 and by adding Sections 17-3.6 and 18-8.15 as follows:
 
16    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
17    Sec. 1A-8. Powers of the Board in Assisting Districts
18Deemed in Financial Difficulties. To promote the financial
19integrity of school districts, the State Board of Education
20shall be provided the necessary powers to promote sound
21financial management and continue operation of the public
22schools.
23    (a) The State Superintendent of Education may require a
24school district, including any district subject to Article 34A

 

 

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1of this Code, to share financial information relevant to a
2proper investigation of the district's financial condition and
3the delivery of appropriate State financial, technical, and
4consulting services to the district if the district (i) has
5been designated, through the State Board of Education's School
6District Financial Profile System, as on financial warning or
7financial watch status, (ii) has failed to file an annual
8financial report, annual budget, deficit reduction plan, or
9other financial information as required by law, (iii) has been
10identified, through the district's annual audit or other
11financial and management information, as in serious financial
12difficulty in the current or next school year, or (iv) is
13determined to be likely to fail to fully meet any regularly
14scheduled, payroll-period obligations when due or any debt
15service payments when due or both. In addition to financial,
16technical, and consulting services provided by the State Board
17of Education, at the request of a school district, the State
18Superintendent may provide for an independent financial
19consultant to assist the district review its financial
20condition and options.
21    (b) The State Board of Education, after proper
22investigation of a district's financial condition, may certify
23that a district, including any district subject to Article 34A,
24is in financial difficulty when any of the following conditions
25occur:
26        (1) The district has issued school or teacher orders

 

 

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1    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
2    of this Code.
3        (2) The district has issued tax anticipation warrants
4    or tax anticipation notes in anticipation of a second
5    year's taxes when warrants or notes in anticipation of
6    current year taxes are still outstanding, as authorized by
7    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
8    issued short-term debt against 2 future revenue sources,
9    such as, but not limited to, tax anticipation warrants and
10    general State aid or primary State aid Aid certificates or
11    tax anticipation warrants and revenue anticipation notes.
12        (3) The district has for 2 consecutive years shown an
13    excess of expenditures and other financing uses over
14    revenues and other financing sources and beginning fund
15    balances on its annual financial report for the aggregate
16    totals of the Educational, Operations and Maintenance,
17    Transportation, and Working Cash Funds.
18        (4) The district refuses to provide financial
19    information or cooperate with the State Superintendent in
20    an investigation of the district's financial condition.
21        (5) The district is likely to fail to fully meet any
22    regularly scheduled, payroll-period obligations when due
23    or any debt service payments when due or both.
24    No school district shall be certified by the State Board of
25Education to be in financial difficulty solely by reason of any
26of the above circumstances arising as a result of (i) the

 

 

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1failure of the county to make any distribution of property tax
2money due the district at the time such distribution is due or
3(ii) the failure of this State to make timely payments of
4general State aid, primary State aid, or any of the mandated
5categoricals; or if the district clearly demonstrates to the
6satisfaction of the State Board of Education at the time of its
7determination that such condition no longer exists. If the
8State Board of Education certifies that a district in a city
9with 500,000 inhabitants or more is in financial difficulty,
10the State Board shall so notify the Governor and the Mayor of
11the city in which the district is located. The State Board of
12Education may require school districts certified in financial
13difficulty, except those districts subject to Article 34A, to
14develop, adopt and submit a financial plan within 45 days after
15certification of financial difficulty. The financial plan
16shall be developed according to guidelines presented to the
17district by the State Board of Education within 14 days of
18certification. Such guidelines shall address the specific
19nature of each district's financial difficulties. Any proposed
20budget of the district shall be consistent with the financial
21plan submitted to and approved by the State Board of Education.
22    A district certified to be in financial difficulty, other
23than a district subject to Article 34A, shall report to the
24State Board of Education at such times and in such manner as
25the State Board may direct, concerning the district's
26compliance with each financial plan. The State Board may review

 

 

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1the district's operations, obtain budgetary data and financial
2statements, require the district to produce reports, and have
3access to any other information in the possession of the
4district that it deems relevant. The State Board may issue
5recommendations or directives within its powers to the district
6to assist in compliance with the financial plan. The district
7shall produce such budgetary data, financial statements,
8reports and other information and comply with such directives.
9If the State Board of Education determines that a district has
10failed to comply with its financial plan, the State Board of
11Education may rescind approval of the plan and appoint a
12Financial Oversight Panel for the district as provided in
13Section 1B-4. This action shall be taken only after the
14district has been given notice and an opportunity to appear
15before the State Board of Education to discuss its failure to
16comply with its financial plan.
17    No bonds, notes, teachers orders, tax anticipation
18warrants or other evidences of indebtedness shall be issued or
19sold by a school district or be legally binding upon or
20enforceable against a local board of education of a district
21certified to be in financial difficulty unless and until the
22financial plan required under this Section has been approved by
23the State Board of Education.
24    Any financial profile compiled and distributed by the State
25Board of Education in Fiscal Year 2009 or any fiscal year
26thereafter shall incorporate such adjustments as may be needed

 

 

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1in the profile scores to reflect the financial effects of the
2inability or refusal of the State of Illinois to make timely
3disbursements of any general State aid, primary State aid, or
4mandated categorical aid payments due school districts or to
5fully reimburse school districts for mandated categorical
6programs pursuant to reimbursement formulas provided in this
7School Code.
8(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
997-429, eff. 8-16-11.)
 
10    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
11    Sec. 1B-5. When a petition for emergency financial
12assistance for a school district is allowed by the State Board
13under Section 1B-4, the State Superintendent shall within 10
14days thereafter appoint 3 members to serve at the State
15Superintendent's pleasure on a Financial Oversight Panel for
16the district. The State Superintendent shall designate one of
17the members of the Panel to serve as its Chairman. In the event
18of vacancy or resignation the State Superintendent shall
19appoint a successor within 10 days of receiving notice thereof.
20    Members of the Panel shall be selected primarily on the
21basis of their experience and education in financial
22management, with consideration given to persons knowledgeable
23in education finance. A member of the Panel may not be a board
24member or employee of the district for which the Panel is
25constituted, nor may a member have a direct financial interest

 

 

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1in that district.
2    Panel members shall serve without compensation, but may be
3reimbursed for travel and other necessary expenses incurred in
4the performance of their official duties by the State Board.
5The amount reimbursed Panel members for their expenses shall be
6charged to the school district as part of any emergency
7financial assistance and incorporated as a part of the terms
8and conditions for repayment of such assistance or shall be
9deducted from the district's general State aid or primary State
10aid as provided in Section 1B-8.
11    The first meeting of the Panel shall be held at the call of
12the Chairman. The Panel may elect such other officers as it
13deems appropriate. The Panel shall prescribe the times and
14places for its meetings and the manner in which regular and
15special meetings may be called, and shall comply with the Open
16Meetings Act.
17    Two members of the Panel shall constitute a quorum, and the
18affirmative vote of 2 members shall be necessary for any
19decision or action to be taken by the Panel.
20    The Panel and the State Superintendent shall cooperate with
21each other in the exercise of their respective powers. The
22Panel shall report not later than September 1 annually to the
23State Board and the State Superintendent with respect to its
24activities and the condition of the school district for the
25previous fiscal year.
26    Any Financial Oversight Panel established under this

 

 

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1Article shall remain in existence for not less than 3 years nor
2more than 10 years from the date the State Board grants the
3petition under Section 1B-4. If after 3 years the school
4district has repaid all of its obligations resulting from
5emergency State financial assistance provided under this
6Article and has improved its financial situation, the board of
7education may, not more frequently than once in any 12 month
8period, petition the State Board to dissolve the Financial
9Oversight Panel, terminate the oversight responsibility, and
10remove the district's certification under Section 1A-8 as a
11district in financial difficulty. In acting on such a petition
12the State Board shall give additional weight to the
13recommendations of the State Superintendent and the Financial
14Oversight Panel.
15(Source: P.A. 88-618, eff. 9-9-94.)
 
16    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
17    Sec. 1B-6. General powers. The purpose of the Financial
18Oversight Panel shall be to exercise financial control over the
19board of education, and, when approved by the State Board and
20the State Superintendent of Education, to furnish financial
21assistance so that the board can provide public education
22within the board's jurisdiction while permitting the board to
23meet its obligations to its creditors and the holders of its
24notes and bonds. Except as expressly limited by this Article,
25the Panel shall have all powers necessary to meet its

 

 

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1responsibilities and to carry out its purposes and the purposes
2of this Article, including, but not limited to, the following
3powers:
4    (a) to sue and be sued;
5    (b) to provide for its organization and internal
6management;
7    (c) to appoint a Financial Administrator to serve as the
8chief executive officer of the Panel. The Financial
9Administrator may be an individual, partnership, corporation,
10including an accounting firm, or other entity determined by the
11Panel to be qualified to serve; and to appoint other officers,
12agents, and employees of the Panel, define their duties and
13qualifications and fix their compensation and employee
14benefits;
15    (d) to approve the local board of education appointments to
16the positions of treasurer in a Class I county school unit and
17in each school district which forms a part of a Class II county
18school unit but which no longer is subject to the jurisdiction
19and authority of a township treasurer or trustees of schools of
20a township because the district has withdrawn from the
21jurisdiction and authority of the township treasurer and the
22trustees of schools of the township or because those offices
23have been abolished as provided in subsection (b) or (c) of
24Section 5-1, and chief school business official, if such
25official is not the superintendent of the district. Either the
26board or the Panel may remove such treasurer or chief school

 

 

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1business official;
2    (e) to approve any and all bonds, notes, teachers orders,
3tax anticipation warrants, and other evidences of indebtedness
4prior to issuance or sale by the school district; and
5notwithstanding any other provision of The School Code, as now
6or hereafter amended, no bonds, notes, teachers orders, tax
7anticipation warrants or other evidences of indebtedness shall
8be issued or sold by the school district or be legally binding
9upon or enforceable against the local board of education unless
10and until the approval of the Panel has been received;
11    (f) to approve all property tax levies of the school
12district and require adjustments thereto as the Panel deems
13necessary or advisable;
14    (g) to require and approve a school district financial
15plan;
16    (h) to approve and require revisions of the school district
17budget;
18    (i) to approve all contracts and other obligations as the
19Panel deems necessary and appropriate;
20    (j) to authorize emergency State financial assistance,
21including requirements regarding the terms and conditions of
22repayment of such assistance, and to require the board of
23education to levy a separate local property tax, subject to the
24limitations of Section 1B-8, sufficient to repay such
25assistance consistent with the terms and conditions of
26repayment and the district's approved financial plan and

 

 

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

 

 

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

 

 

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1reduce financial inefficiency, and to provide technical
2assistance to aid the district in accomplishing the
3reorganization;
4    (c) to make recommendations to the Financial Oversight
5Panel concerning the school district's financial plan and
6budget, and all other matters within the scope of the Panel's
7authority;
8    (d) to prepare and recommend to the Panel a proposal for
9emergency State financial assistance for the district,
10including recommended terms and conditions of repayment, and an
11operations budget for the Panel to be funded from the emergency
12assistance or from deductions from the district's general State
13aid or primary State aid;
14    (e) to require the local board to prepare and submit
15preliminary staffing and budgetary analyses annually prior to
16February 1 in such manner and form as the Financial
17Administrator shall prescribe; and
18    (f) subject to the direction of the Panel, to do all other
19things necessary or convenient to carry out its purposes and
20exercise the powers given to the Panel under this Article.
21(Source: P.A. 88-618, eff. 9-9-94.)
 
22    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
23    Sec. 1B-8. There is created in the State Treasury a special
24fund to be known as the School District Emergency Financial
25Assistance Fund (the "Fund"). The School District Emergency

 

 

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

 

 

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

 

 

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

 

 

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1emergency financial assistance loan to the Panel or district
2shall not be considered part of the calculation of a district's
3debt for purposes of the limitation specified in Section 19-1
4of this Code. Default on repayment is subject to the Illinois
5Grant Funds Recovery Act. When moneys are repaid as provided
6herein they shall not be made available to the local board for
7further use as emergency financial assistance under this
8Article at any time thereafter. All repayments required to be
9made by a school district shall be received by the State Board
10and deposited in the School District Emergency Financial
11Assistance Fund.
12    In establishing the terms and conditions for the repayment
13obligation of the school district the Panel shall annually
14determine whether a separate local property tax levy is
15required. The board of any school district with a tax rate for
16educational purposes for the prior year of less than 120% of
17the maximum rate for educational purposes authorized by Section
1817-2 shall provide for a separate tax levy for emergency
19financial assistance repayment purposes. Such tax levy shall
20not be subject to referendum approval. The amount of the levy
21shall be equal to the amount necessary to meet the annual
22repayment obligations of the district as established by the
23Panel, or 20% of the amount levied for educational purposes for
24the prior year, whichever is less. However, no district shall
25be required to levy the tax if the district's operating tax
26rate as determined under Section 18-8, or 18-8.05, or 18-8.15

 

 

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1exceeds 200% of the district's tax rate for educational
2purposes for the prior year.
3(Source: P.A. 97-429, eff. 8-16-11.)
 
4    (105 ILCS 5/1C-1)
5    Sec. 1C-1. Purpose. The purpose of this Article is to
6permit greater flexibility and efficiency in the distribution
7and use of certain State funds available to local education
8agencies for the improvement of the quality of educational
9services pursuant to locally established priorities.
10    Through fiscal year 2016, this This Article does not apply
11to school districts having a population in excess of 500,000
12inhabitants.
13(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1489-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
15    (105 ILCS 5/1C-2)
16    Sec. 1C-2. Block grants.
17    (a) For fiscal year 1999, and each fiscal year thereafter,
18the State Board of Education shall award to school districts
19block grants as described in subsection (c). The State Board of
20Education may adopt rules and regulations necessary to
21implement this Section. In accordance with Section 2-3.32, all
22state block grants are subject to an audit. Therefore, block
23grant receipts and block grant expenditures shall be recorded
24to the appropriate fund code.

 

 

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1    (b) (Blank).
2    (c) An Early Childhood Education Block Grant shall be
3created by combining the following programs: Preschool
4Education, Parental Training and Prevention Initiative. These
5funds shall be distributed to school districts and other
6entities on a competitive basis, except that the State Board of
7Education shall award to a school district having a population
8exceeding 500,000 inhabitants 37% of the funds in each fiscal
9year. Not less than 14% of this grant shall be used to fund
10programs for children ages 0-3, which percentage shall increase
11to at least 20% by Fiscal Year 2016. However, if, in a given
12fiscal year, the amount appropriated for the Early Childhood
13Education Block Grant is insufficient to increase the
14percentage of the grant to fund programs for children ages 0-3
15without reducing the amount of the grant for existing providers
16of preschool education programs, then the percentage of the
17grant to fund programs for children ages 0-3 may be held steady
18instead of increased.
19(Source: P.A. 98-645, eff. 7-1-14.)
 
20    (105 ILCS 5/1D-1)
21    Sec. 1D-1. Block grant funding.
22    (a) For fiscal year 1996 through fiscal year 2016 and each
23fiscal year thereafter, the State Board of Education shall
24award to a school district having a population exceeding
25500,000 inhabitants a general education block grant and an

 

 

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1educational services block grant, determined as provided in
2this Section, in lieu of distributing to the district separate
3State funding for the programs described in subsections (b) and
4(c). The provisions of this Section, however, do not apply to
5any federal funds that the district is entitled to receive. In
6accordance with Section 2-3.32, all block grants are subject to
7an audit. Therefore, block grant receipts and block grant
8expenditures shall be recorded to the appropriate fund code for
9the designated block grant.
10    (b) The general education block grant shall include the
11following programs: REI Initiative, Summer Bridges, Preschool
12At Risk, K-6 Comprehensive Arts, School Improvement Support,
13Urban Education, Scientific Literacy, Substance Abuse
14Prevention, Second Language Planning, Staff Development,
15Outcomes and Assessment, K-6 Reading Improvement, 7-12
16Continued Reading Improvement, Truants' Optional Education,
17Hispanic Programs, Agriculture Education, Parental Education,
18Prevention Initiative, Report Cards, and Criminal Background
19Investigations. Notwithstanding any other provision of law,
20all amounts paid under the general education block grant from
21State appropriations to a school district in a city having a
22population exceeding 500,000 inhabitants shall be appropriated
23and expended by the board of that district for any of the
24programs included in the block grant or any of the board's
25lawful purposes.
26    (c) The educational services block grant shall include the

 

 

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

 

 

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1    (d) For fiscal year 1996 through fiscal year 2016 and each
2fiscal year thereafter, the amount of the district's block
3grants shall be determined as follows: (i) with respect to each
4program that is included within each block grant, the district
5shall receive an amount equal to the same percentage of the
6current fiscal year appropriation made for that program as the
7percentage of the appropriation received by the district from
8the 1995 fiscal year appropriation made for that program, and
9(ii) the total amount that is due the district under the block
10grant shall be the aggregate of the amounts that the district
11is entitled to receive for the fiscal year with respect to each
12program that is included within the block grant that the State
13Board of Education shall award the district under this Section
14for that fiscal year. In the case of the Summer Bridges
15program, the amount of the district's block grant shall be
16equal to 44% of the amount of the current fiscal year
17appropriation made for that program.
18    (e) The district is not required to file any application or
19other claim in order to receive the block grants to which it is
20entitled under this Section. The State Board of Education shall
21make payments to the district of amounts due under the
22district's block grants on a schedule determined by the State
23Board of Education.
24    (f) A school district to which this Section applies shall
25report to the State Board of Education on its use of the block
26grants in such form and detail as the State Board of Education

 

 

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1may specify. In addition, the report must include the following
2description for the district, which must also be reported to
3the General Assembly: block grant allocation and expenditures
4by program; population and service levels by program; and
5administrative expenditures by program. The State Board of
6Education shall ensure that the reporting requirements for the
7district are the same as for all other school districts in this
8State.
9    (g) Through fiscal year 2016, this This paragraph provides
10for the treatment of block grants under Article 1C for purposes
11of calculating the amount of block grants for a district under
12this Section. Those block grants under Article 1C are, for this
13purpose, treated as included in the amount of appropriation for
14the various programs set forth in paragraph (b) above. The
15appropriation in each current fiscal year for each block grant
16under Article 1C shall be treated for these purposes as
17appropriations for the individual program included in that
18block grant. The proportion of each block grant so allocated to
19each such program included in it shall be the proportion which
20the appropriation for that program was of all appropriations
21for such purposes now in that block grant, in fiscal 1995.
22    Payments to the school district under this Section with
23respect to each program for which payments to school districts
24generally, as of the date of this amendatory Act of the 92nd
25General Assembly, are on a reimbursement basis shall continue
26to be made to the district on a reimbursement basis, pursuant

 

 

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1to the provisions of this Code governing those programs.
2    (h) Notwithstanding any other provision of law, any school
3district receiving a block grant under this Section may
4classify all or a portion of the funds that it receives in a
5particular fiscal year from any block grant authorized under
6this Code or from general State aid pursuant to Section 18-8.05
7of this Code (other than supplemental general State aid) as
8funds received in connection with any funding program for which
9it is entitled to receive funds from the State in that fiscal
10year (including, without limitation, any funding program
11referred to in subsection (c) of this Section), regardless of
12the source or timing of the receipt. The district may not
13classify more funds as funds received in connection with the
14funding program than the district is entitled to receive in
15that fiscal year for that program. Any classification by a
16district must be made by a resolution of its board of
17education. The resolution must identify the amount of any block
18grant or general State aid to be classified under this
19subsection (h) and must specify the funding program to which
20the funds are to be treated as received in connection
21therewith. This resolution is controlling as to the
22classification of funds referenced therein. A certified copy of
23the resolution must be sent to the State Superintendent of
24Education. The resolution shall still take effect even though a
25copy of the resolution has not been sent to the State
26Superintendent of Education in a timely manner. No

 

 

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1classification under this subsection (h) by a district shall
2affect the total amount or timing of money the district is
3entitled to receive under this Code. No classification under
4this subsection (h) by a district shall in any way relieve the
5district from or affect any requirements that otherwise would
6apply with respect to the block grant as provided in this
7Section, including any accounting of funds by source, reporting
8expenditures by original source and purpose, reporting
9requirements, or requirements of provision of services.
10(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1197-813, eff. 7-13-12.)
 
12    (105 ILCS 5/1E-20)
13    (This Section scheduled to be repealed in accordance with
14105 ILCS 5/1E-165)
15    Sec. 1E-20. Members of Authority; meetings.
16    (a) When a petition for a School Finance Authority is
17allowed by the State Board under Section 1E-15 of this Code,
18the State Superintendent shall within 10 days thereafter
19appoint 5 members to serve on a School Finance Authority for
20the district. Of the initial members, 2 shall be appointed to
21serve a term of 2 years and 3 shall be appointed to serve a term
22of 3 years. Thereafter, each member shall serve for a term of 3
23years and until his or her successor has been appointed. The
24State Superintendent shall designate one of the members of the
25Authority to serve as its Chairperson. In the event of vacancy

 

 

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1or resignation, the State Superintendent shall, within 10 days
2after receiving notice, appoint a successor to serve out that
3member's term. The State Superintendent may remove a member for
4incompetence, malfeasance, neglect of duty, or other just
5cause.
6    Members of the Authority shall be selected primarily on the
7basis of their experience and education in financial
8management, with consideration given to persons knowledgeable
9in education finance. Two members of the Authority shall be
10residents of the school district that the Authority serves. A
11member of the Authority may not be a member of the district's
12school board or an employee of the district nor may a member
13have a direct financial interest in the district.
14    Authority members shall serve without compensation, but
15may be reimbursed by the State Board for travel and other
16necessary expenses incurred in the performance of their
17official duties. Unless paid from bonds issued under Section
181E-65 of this Code, the amount reimbursed members for their
19expenses shall be charged to the school district as part of any
20emergency financial assistance and incorporated as a part of
21the terms and conditions for repayment of the assistance or
22shall be deducted from the district's general State aid or
23primary State aid as provided in Section 1B-8 of this Code.
24    The Authority may elect such officers as it deems
25appropriate.
26    (b) The first meeting of the Authority shall be held at the

 

 

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1call of the Chairperson. The Authority shall prescribe the
2times and places for its meetings and the manner in which
3regular and special meetings may be called and shall comply
4with the Open Meetings Act.
5    Three members of the Authority shall constitute a quorum.
6When a vote is taken upon any measure before the Authority, a
7quorum being present, a majority of the votes of the members
8voting on the measure shall determine the outcome.
9(Source: P.A. 92-547, eff. 6-13-02.)
 
10    (105 ILCS 5/1F-20)
11(This Section scheduled to be repealed in accordance with 105
12ILCS 5/1F-165)
13    Sec. 1F-20. Members of Authority; meetings.
14    (a) Upon establishment of a School Finance Authority under
15Section 1F-15 of this Code, the State Superintendent shall
16within 15 days thereafter appoint 5 members to serve on a
17School Finance Authority for the district. Of the initial
18members, 2 shall be appointed to serve a term of 2 years and 3
19shall be appointed to serve a term of 3 years. Thereafter, each
20member shall serve for a term of 3 years and until his or her
21successor has been appointed. The State Superintendent shall
22designate one of the members of the Authority to serve as its
23Chairperson. In the event of vacancy or resignation, the State
24Superintendent shall, within 10 days after receiving notice,
25appoint a successor to serve out that member's term. The State

 

 

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1Superintendent may remove a member for incompetence,
2malfeasance, neglect of duty, or other just cause.
3    Members of the Authority shall be selected primarily on the
4basis of their experience and education in financial
5management, with consideration given to persons knowledgeable
6in education finance. Two members of the Authority shall be
7residents of the school district that the Authority serves. A
8member of the Authority may not be a member of the district's
9school board or an employee of the district nor may a member
10have a direct financial interest in the district.
11    Authority members shall be paid a stipend approved by the
12State Superintendent of not more than $100 per meeting and may
13be reimbursed by the State Board for travel and other necessary
14expenses incurred in the performance of their official duties.
15Unless paid from bonds issued under Section 1F-65 of this Code,
16the amount reimbursed members for their expenses shall be
17charged to the school district as part of any emergency
18financial assistance and incorporated as a part of the terms
19and conditions for repayment of the assistance or shall be
20deducted from the district's general State aid or primary State
21aid as provided in Section 1B-8 of this Code.
22    The Authority may elect such officers as it deems
23appropriate.
24    (b) The first meeting of the Authority shall be held at the
25call of the Chairperson. The Authority shall prescribe the
26times and places for its meetings and the manner in which

 

 

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1regular and special meetings may be called and shall comply
2with the Open Meetings Act.
3    Three members of the Authority shall constitute a quorum.
4When a vote is taken upon any measure before the Authority, a
5quorum being present, a majority of the votes of the members
6voting on the measure shall determine the outcome.
7(Source: P.A. 94-234, eff. 7-1-06.)
 
8    (105 ILCS 5/1F-62)
9(This Section scheduled to be repealed in accordance with 105
10ILCS 5/1F-165)
11    Sec. 1F-62. School District Emergency Financial Assistance
12Fund; grants and loans.
13    (a) Moneys in the School District Emergency Financial
14Assistance Fund established under Section 1B-8 of this Code may
15be allocated and expended by the State Board as grants to
16provide technical and consulting services to school districts
17to assess their financial condition and by the Illinois Finance
18Authority for emergency financial assistance loans to a School
19Finance Authority that petitions for emergency financial
20assistance. An emergency financial assistance loan to a School
21Finance Authority or borrowing from sources other than the
22State shall not be considered as part of the calculation of a
23district's debt for purposes of the limitation specified in
24Section 19-1 of this Code. From the amount allocated to each
25School Finance Authority, the State Board shall identify a sum

 

 

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1sufficient to cover all approved costs of the School Finance
2Authority. If the State Board and State Superintendent have not
3approved emergency financial assistance in conjunction with
4the appointment of a School Finance Authority, the Authority's
5approved costs shall be paid from deductions from the
6district's general State aid or primary State aid.
7    The School Finance Authority may prepare and file with the
8State Superintendent a proposal for emergency financial
9assistance for the school district and for its operations
10budget. No expenditures shall be authorized by the State
11Superintendent until he or she has approved the proposal of the
12School Finance Authority, either as submitted or in such lesser
13amount determined by the State Superintendent.
14    (b) The amount of an emergency financial assistance loan
15that may be allocated to a School Finance Authority under this
16Article, including moneys necessary for the operations of the
17School Finance Authority, and borrowing from sources other than
18the State shall not exceed, in the aggregate, $4,000 times the
19number of pupils enrolled in the district during the school
20year ending June 30 prior to the date of approval by the State
21Board of the petition for emergency financial assistance, as
22certified to the school board and the School Finance Authority
23by the State Superintendent. However, this limitation does not
24apply to borrowing by the district secured by amounts levied by
25the district prior to establishment of the School Finance
26Authority. An emergency financial assistance grant shall not

 

 

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1exceed $1,000 times the number of such pupils. A district may
2receive both a loan and a grant.
3    (c) The payment of a State emergency financial assistance
4grant or loan shall be subject to appropriation by the General
5Assembly. State emergency financial assistance allocated and
6paid to a School Finance Authority under this Article may be
7applied to any fund or funds from which the School Finance
8Authority is authorized to make expenditures by law.
9    (d) Any State emergency financial assistance proposed by
10the School Finance Authority and approved by the State
11Superintendent may be paid in its entirety during the initial
12year of the School Finance Authority's existence or spread in
13equal or declining amounts over a period of years not to exceed
14the period of the School Finance Authority's existence. The
15State Superintendent shall not approve any loan to the School
16Finance Authority unless the School Finance Authority has been
17unable to borrow sufficient funds to operate the district.
18    All loan payments made from the School District Emergency
19Financial Assistance Fund to a School Finance Authority shall
20be required to be repaid not later than the date the School
21Finance Authority ceases to exist, with simple interest over
22the term of the loan at a rate equal to 50% of the one-year
23Constant Maturity Treasury (CMT) yield as last published by the
24Board of Governors of the Federal Reserve System before the
25date on which the School Finance Authority's loan is approved
26by the State Board.

 

 

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1    The School Finance Authority shall establish and the
2Illinois Finance Authority shall approve the terms and
3conditions of the loan, including the schedule of repayments.
4The schedule shall provide for repayments commencing July 1 of
5each year or upon each fiscal year's receipt of moneys from a
6tax levy for emergency financial assistance. Repayment shall be
7incorporated into the annual budget of the district and may be
8made from any fund or funds of the district in which there are
9moneys available. Default on repayment is subject to the
10Illinois Grant Funds Recovery Act. When moneys are repaid as
11provided in this Section, they shall not be made available to
12the School Finance Authority for further use as emergency
13financial assistance under this Article at any time thereafter.
14All repayments required to be made by a School Finance
15Authority shall be received by the State Board and deposited in
16the School District Emergency Financial Assistance Fund.
17    In establishing the terms and conditions for the repayment
18obligation of the School Finance Authority, the School Finance
19Authority shall annually determine whether a separate local
20property tax levy is required to meet that obligation. The
21School Finance Authority shall provide for a separate tax levy
22for emergency financial assistance repayment purposes. This
23tax levy shall not be subject to referendum approval. The
24amount of the levy shall not exceed the amount necessary to
25meet the annual emergency financial repayment obligations of
26the district, including principal and interest, as established

 

 

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1by the School Finance Authority.
2(Source: P.A. 94-234, eff. 7-1-06.)
 
3    (105 ILCS 5/1H-20)
4    Sec. 1H-20. Members of Panel; meetings.
5    (a) Upon establishment of a Financial Oversight Panel under
6Section 1H-15 of this Code, the State Superintendent shall
7within 15 working days thereafter appoint 5 members to serve on
8a Financial Oversight Panel for the district. Members appointed
9to the Panel shall serve at the pleasure of the State
10Superintendent. The State Superintendent shall designate one
11of the members of the Panel to serve as its Chairperson. In the
12event of vacancy or resignation, the State Superintendent
13shall, within 10 days after receiving notice, appoint a
14successor to serve out that member's term.
15    (b) Members of the Panel shall be selected primarily on the
16basis of their experience and education in financial
17management, with consideration given to persons knowledgeable
18in education finance. Two members of the Panel shall be
19residents of the school district that the Panel serves. A
20member of the Panel may not be a member of the district's
21school board or an employee of the district nor may a member
22have a direct financial interest in the district.
23    (c) Panel members may be reimbursed by the State Board for
24travel and other necessary expenses incurred in the performance
25of their official duties. The amount reimbursed members for

 

 

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1their expenses shall be charged to the school district as part
2of any emergency financial assistance and incorporated as a
3part of the terms and conditions for repayment of the
4assistance or shall be deducted from the district's general
5State aid or primary State aid as provided in Section 1H-65 of
6this Code.
7    (d) With the exception of the chairperson, who shall be
8designated as provided in subsection (a) of this Section, the
9Panel may elect such officers as it deems appropriate.
10    (e) The first meeting of the Panel shall be held at the
11call of the Chairperson. The Panel shall prescribe the times
12and places for its meetings and the manner in which regular and
13special meetings may be called and shall comply with the Open
14Meetings Act. The Panel shall also comply with the Freedom of
15Information Act.
16    (f) Three members of the Panel shall constitute a quorum. A
17majority of members present is required to pass a measure.
18(Source: P.A. 97-429, eff. 8-16-11.)
 
19    (105 ILCS 5/1H-70)
20    Sec. 1H-70. Tax anticipation warrants, tax anticipation
21notes, revenue anticipation certificates or notes, general
22State aid or primary State aid anticipation certificates, and
23lines of credit. With the approval of the State Superintendent
24and provided that the district is unable to secure short-term
25financing after 3 attempts, a Panel shall have the same power

 

 

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1as a district to do the following:
2        (1) issue tax anticipation warrants under the
3    provisions of Section 17-16 of this Code against taxes
4    levied by either the school board or the Panel pursuant to
5    Section 1H-25 of this Code;
6        (2) issue tax anticipation notes under the provisions
7    of the Tax Anticipation Note Act against taxes levied by
8    either the school board or the Panel pursuant to Section
9    1H-25 of this Code;
10        (3) issue revenue anticipation certificates or notes
11    under the provisions of the Revenue Anticipation Act;
12        (4) issue general State aid or primary State aid
13    anticipation certificates under the provisions of Section
14    18-18 of this Code; and
15        (5) establish and utilize lines of credit under the
16    provisions of Section 17-17 of this Code.
17    Tax anticipation warrants, tax anticipation notes, revenue
18anticipation certificates or notes, general State aid or
19primary State aid anticipation certificates, and lines of
20credit are considered borrowing from sources other than the
21State and are subject to Section 1H-65 of this Code.
22(Source: P.A. 97-429, eff. 8-16-11.)
 
23    (105 ILCS 5/2-3.28)  (from Ch. 122, par. 2-3.28)
24    Sec. 2-3.28. Rules and regulations of budget and accounting
25systems. To prescribe rules and regulations defining what shall

 

 

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1constitute a budget and accounting system required under this
2Act. The rules and regulations shall prescribe the minimum
3extent of verification, the type of audit, the extent of the
4audit report and shall require compliance with statutory
5requirements and standards and such requirements as the State
6Board of Education deems necessary for an adequate budget and
7accounting system. For the 2018-2019 school year and
8thereafter, the rules and regulations shall prescribe a system
9for accounting for revenues and expenditures at the individual
10school level that includes without limitation the following:
11        (1) accounting for expenditures for school
12    administration, regular instruction, special education
13    instruction, instructional programs for children of
14    limited English-speaking ability, instructional support
15    services, and pupil support services;
16        (2) salary expenditures reflecting actual staff
17    salaries at each school;
18        (3) accounting for operations, including
19    non-instructional pupil services, facilities, and business
20    services; and
21        (4) such other requirements as the State Board of
22    Education deems necessary to provide for a uniform and
23    transparent system of accounting at the school level.
24(Source: P.A. 81-1508.)
 
25    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)

 

 

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1    Sec. 2-3.33. Recomputation of claims. To recompute within
23 years from the final date for filing of a claim any claim for
3reimbursement to any school district if the claim has been
4found to be incorrect and to adjust subsequent claims
5accordingly, and to recompute and adjust any such claims within
66 years from the final date for filing when there has been an
7adverse court or administrative agency decision on the merits
8affecting the tax revenues of the school district. However, no
9such adjustment shall be made regarding equalized assessed
10valuation unless the district's equalized assessed valuation
11is changed by greater than $250,000 or 2%. Any adjustments for
12claims recomputed for the 2015-2016 school year and prior
13school years shall be applied to the apportionment of primary
14State financial aid in Section 18-8.15 of this Code beginning
15in the 2016-2017 school year and thereafter.
16    Except in the case of an adverse court or administrative
17agency decision, no recomputation of a State aid claim shall be
18made pursuant to this Section as a result of a reduction in the
19assessed valuation of a school district from the assessed
20valuation of the district reported to the State Board of
21Education by the Department of Revenue under Section 18-8.05 or
2218-8.15 of this Code unless the requirements of Section 16-15
23of the Property Tax Code and Section 2-3.84 of this Code are
24complied with in all respects.
25    This paragraph applies to all requests for recomputation of
26a general State aid or primary State aid claim received after

 

 

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1June 30, 2003. In recomputing a general State aid or primary
2State aid claim that was originally calculated using an
3extension limitation equalized assessed valuation under
4paragraph (3) of subsection (G) of Section 18-8.05 of this Code
5or paragraph (2) of subsection (h) of Section 18-8.15 of this
6Code, a qualifying reduction in equalized assessed valuation
7shall be deducted from the extension limitation equalized
8assessed valuation that was used in calculating the original
9claim.
10    From the total amount of general State aid or primary State
11aid to be provided to districts, adjustments as a result of
12recomputation under this Section together with adjustments
13under Section 2-3.84 must not exceed $25 million, in the
14aggregate for all districts under both Sections combined, of
15the general State aid or primary State aid appropriation in any
16fiscal year; if necessary, amounts shall be prorated among
17districts. If it is necessary to prorate claims under this
18paragraph, then that portion of each prorated claim that is
19approved but not paid in the current fiscal year may be
20resubmitted as a valid claim in the following fiscal year.
21(Source: P.A. 93-845, eff. 7-30-04.)
 
22    (105 ILCS 5/2-3.51.5)
23    Sec. 2-3.51.5. School Safety and Educational Improvement
24Block Grant Program. To improve the level of education and
25safety of students from kindergarten through grade 12 in school

 

 

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1districts and State-recognized, non-public schools. The State
2Board of Education is authorized to fund a School Safety and
3Educational Improvement Block Grant Program.
4    (1) For school districts, the program shall provide funding
5for school safety, textbooks and software, electronic
6textbooks and the technological equipment necessary to gain
7access to and use electronic textbooks, teacher training and
8curriculum development, school improvements, school report
9cards under Section 10-17a, and criminal history records checks
10under Sections 10-21.9 and 34-18.5. For State-recognized,
11non-public schools, the program shall provide funding for
12secular textbooks and software, criminal history records
13checks, and health and safety mandates to the extent that the
14funds are expended for purely secular purposes. A school
15district or laboratory school as defined in Section 18-8, or
1618-8.05, or 18-8.15 is not required to file an application in
17order to receive the categorical funding to which it is
18entitled under this Section. Funds for the School Safety and
19Educational Improvement Block Grant Program shall be
20distributed to school districts and laboratory schools based on
21the prior year's best 3 months average daily attendance. Funds
22for the School Safety and Educational Improvement Block Grant
23Program shall be distributed to State-recognized, non-public
24schools based on the average daily attendance figure for the
25previous school year provided to the State Board of Education.
26The State Board of Education shall develop an application that

 

 

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1requires State-recognized, non-public schools to submit
2average daily attendance figures. A State-recognized,
3non-public school must submit the application and average daily
4attendance figure prior to receiving funds under this Section.
5The State Board of Education shall promulgate rules and
6regulations necessary for the implementation of this program.
7    (2) Distribution of moneys to school districts and
8State-recognized, non-public schools shall be made in 2
9semi-annual installments, one payment on or before October 30,
10and one payment prior to April 30, of each fiscal year.
11    (3) Grants under the School Safety and Educational
12Improvement Block Grant Program shall be awarded provided there
13is an appropriation for the program, and funding levels for
14each district shall be prorated according to the amount of the
15appropriation.
16    (4) The provisions of this Section are in the public
17interest, are for the public benefit, and serve secular public
18purposes.
19(Source: P.A. 98-972, eff. 8-15-14.)
 
20    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
21    Sec. 2-3.66. Truants' alternative and optional education
22programs. To establish projects to offer modified
23instructional programs or other services designed to prevent
24students from dropping out of school, including programs
25pursuant to Section 2-3.41, and to serve as a part time or full

 

 

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1time option in lieu of regular school attendance and to award
2grants to local school districts, educational service regions
3or community college districts from appropriated funds to
4assist districts in establishing such projects. The education
5agency may operate its own program or enter into a contract
6with another not-for-profit entity to implement the program.
7The projects shall allow dropouts, up to and including age 21,
8potential dropouts, including truants, uninvolved, unmotivated
9and disaffected students, as defined by State Board of
10Education rules and regulations, to enroll, as an alternative
11to regular school attendance, in an optional education program
12which may be established by school board policy and is in
13conformance with rules adopted by the State Board of Education.
14Truants' Alternative and Optional Education programs funded
15pursuant to this Section shall be planned by a student, the
16student's parents or legal guardians, unless the student is 18
17years or older, and school officials and shall culminate in an
18individualized optional education plan. Such plan shall focus
19on academic or vocational skills, or both, and may include, but
20not be limited to, evening school, summer school, community
21college courses, adult education, preparation courses for high
22school equivalency testing, vocational training, work
23experience, programs to enhance self concept and parenting
24courses. School districts which are awarded grants pursuant to
25this Section shall be authorized to provide day care services
26to children of students who are eligible and desire to enroll

 

 

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1in programs established and funded under this Section, but only
2if and to the extent that such day care is necessary to enable
3those eligible students to attend and participate in the
4programs and courses which are conducted pursuant to this
5Section. School districts and regional offices of education may
6claim general State aid under Section 18-8.05 or primary State
7aid under Section 18-8.15 for students enrolled in truants'
8alternative and optional education programs, provided that
9such students are receiving services that are supplemental to a
10program leading to a high school diploma and are otherwise
11eligible to be claimed for general State aid under Section
1218-8.05 or primary State aid under Section 18-8.15, as
13applicable.
14(Source: P.A. 98-718, eff. 1-1-15.)
 
15    (105 ILCS 5/2-3.66b)
16    Sec. 2-3.66b. IHOPE Program.
17    (a) There is established the Illinois Hope and Opportunity
18Pathways through Education (IHOPE) Program. The State Board of
19Education shall implement and administer the IHOPE Program. The
20goal of the IHOPE Program is to develop a comprehensive system
21in this State to re-enroll significant numbers of high school
22dropouts in programs that will enable them to earn their high
23school diploma.
24    (b) The IHOPE Program shall award grants, subject to
25appropriation for this purpose, to educational service regions

 

 

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1and a school district organized under Article 34 of this Code
2from appropriated funds to assist in establishing
3instructional programs and other services designed to
4re-enroll high school dropouts. From any funds appropriated for
5the IHOPE Program, the State Board of Education may use up to
65% for administrative costs, including the performance of a
7program evaluation and the hiring of staff to implement and
8administer the program.
9    The IHOPE Program shall provide incentive grant funds for
10regional offices of education and a school district organized
11under Article 34 of this Code to develop partnerships with
12school districts, public community colleges, and community
13groups to build comprehensive plans to re-enroll high school
14dropouts in their regions or districts.
15    Programs funded through the IHOPE Program shall allow high
16school dropouts, up to and including age 21 notwithstanding
17Section 26-2 of this Code, to re-enroll in an educational
18program in conformance with rules adopted by the State Board of
19Education. Programs may include without limitation
20comprehensive year-round programming, evening school, summer
21school, community college courses, adult education, vocational
22training, work experience, programs to enhance self-concept,
23and parenting courses. Any student in the IHOPE Program who
24wishes to earn a high school diploma must meet the
25prerequisites to receiving a high school diploma specified in
26Section 27-22 of this Code and any other graduation

 

 

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1requirements of the student's district of residence. Any
2student who successfully completes the requirements for his or
3her graduation shall receive a diploma identifying the student
4as graduating from his or her district of residence.
5    (c) In order to be eligible for funding under the IHOPE
6Program, an interested regional office of education or a school
7district organized under Article 34 of this Code shall develop
8an IHOPE Plan to be approved by the State Board of Education.
9The State Board of Education shall develop rules for the IHOPE
10Program that shall set forth the requirements for the
11development of the IHOPE Plan. Each Plan shall involve school
12districts, public community colleges, and key community
13programs that work with high school dropouts located in an
14educational service region or the City of Chicago before the
15Plan is sent to the State Board for approval. No funds may be
16distributed to a regional office of education or a school
17district organized under Article 34 of this Code until the
18State Board has approved the Plan.
19    (d) A regional office of education or a school district
20organized under Article 34 of this Code may operate its own
21program funded by the IHOPE Program or enter into a contract
22with other not-for-profit entities, including school
23districts, public community colleges, and not-for-profit
24community-based organizations, to operate a program.
25    A regional office of education or a school district
26organized under Article 34 of this Code that receives an IHOPE

 

 

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1grant from the State Board of Education may provide funds under
2a sub-grant, as specified in the IHOPE Plan, to other
3not-for-profit entities to provide services according to the
4IHOPE Plan that was developed. These other entities may include
5school districts, public community colleges, or not-for-profit
6community-based organizations or a cooperative partnership
7among these entities.
8    (e) In order to distribute funding based upon the need to
9ensure delivery of programs that will have the greatest impact,
10IHOPE Program funding must be distributed based upon the
11proportion of dropouts in the educational service region or
12school district, in the case of a school district organized
13under Article 34 of this Code, to the total number of dropouts
14in this State. This formula shall employ the dropout data
15provided by school districts to the State Board of Education.
16    A regional office of education or a school district
17organized under Article 34 of this Code may claim State aid
18under Section 18-8.05 or 18-8.15 of this Code for students
19enrolled in a program funded by the IHOPE Program, provided
20that the State Board of Education has approved the IHOPE Plan
21and that these students are receiving services that are meeting
22the requirements of Section 27-22 of this Code for receipt of a
23high school diploma and are otherwise eligible to be claimed
24for general State aid under Section 18-8.05 of this Code or
25primary State aid under Section 18-8.15 of this Code, including
26provisions related to the minimum number of days of pupil

 

 

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1attendance pursuant to Section 10-19 of this Code and the
2minimum number of daily hours of school work and any exceptions
3thereto as defined by the State Board of Education in rules.
4    (f) IHOPE categories of programming may include the
5following:
6        (1) Full-time programs that are comprehensive,
7    year-round programs.
8        (2) Part-time programs combining work and study
9    scheduled at various times that are flexible to the needs
10    of students.
11        (3) Online programs and courses in which students take
12    courses and complete on-site, supervised tests that
13    measure the student's mastery of a specific course needed
14    for graduation. Students may take courses online and earn
15    credit or students may prepare to take supervised tests for
16    specific courses for credit leading to receipt of a high
17    school diploma.
18        (4) Dual enrollment in which students attend high
19    school classes in combination with community college
20    classes or students attend community college classes while
21    simultaneously earning high school credit and eventually a
22    high school diploma.
23    (g) In order to have successful comprehensive programs
24re-enrolling and graduating low-skilled high school dropouts,
25programs funded through the IHOPE Program shall include all of
26the following components:

 

 

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1        (1) Small programs (70 to 100 students) at a separate
2    school site with a distinct identity. Programs may be
3    larger with specific need and justification, keeping in
4    mind that it is crucial to keep programs small to be
5    effective.
6        (2) Specific performance-based goals and outcomes and
7    measures of enrollment, attendance, skills, credits,
8    graduation, and the transition to college, training, and
9    employment.
10        (3) Strong, experienced leadership and teaching staff
11    who are provided with ongoing professional development.
12        (4) Voluntary enrollment.
13        (5) High standards for student learning, integrating
14    work experience, and education, including during the
15    school year and after school, and summer school programs
16    that link internships, work, and learning.
17        (6) Comprehensive programs providing extensive support
18    services.
19        (7) Small teams of students supported by full-time paid
20    mentors who work to retain and help those students
21    graduate.
22        (8) A comprehensive technology learning center with
23    Internet access and broad-based curriculum focusing on
24    academic and career subject areas.
25        (9) Learning opportunities that incorporate action
26    into study.

 

 

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1    (h) Programs funded through the IHOPE Program must report
2data to the State Board of Education as requested. This
3information shall include, but is not limited to, student
4enrollment figures, attendance information, course completion
5data, graduation information, and post-graduation information,
6as available.
7    (i) Rules must be developed by the State Board of Education
8to set forth the fund distribution process to regional offices
9of education and a school district organized under Article 34
10of this Code, the planning and the conditions upon which an
11IHOPE Plan would be approved by State Board, and other rules to
12develop the IHOPE Program.
13(Source: P.A. 96-106, eff. 7-30-09.)
 
14    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
15    Sec. 2-3.84. In calculating the amount of State aid to be
16apportioned to the various school districts in this State, the
17State Board of Education shall incorporate and deduct the total
18aggregate adjustments to assessments made by the State Property
19Tax Appeal Board or Cook County Board of Appeals, as reported
20pursuant to Section 16-15 of the Property Tax Code or Section
21129.1 of the Revenue Act of 1939 by the Department of Revenue,
22from the equalized assessed valuation that is otherwise to be
23utilized in the initial calculation.
24    From the total amount of general State aid or primary State
25aid to be provided to districts, adjustments under this Section

 

 

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1together with adjustments as a result of recomputation under
2Section 2-3.33 must not exceed $25 million, in the aggregate
3for all districts under both Sections combined, of the general
4State aid or primary State aid appropriation in any fiscal
5year; if necessary, amounts shall be prorated among districts.
6If it is necessary to prorate claims under this paragraph, then
7that portion of each prorated claim that is approved but not
8paid in the current fiscal year may be resubmitted as a valid
9claim in the following fiscal year.
10(Source: P.A. 93-845, eff. 7-30-04.)
 
11    (105 ILCS 5/2-3.109a)
12    Sec. 2-3.109a. Laboratory schools grant eligibility. A
13laboratory school as defined in Section 18-8 or 18-8.15 may
14apply for and be eligible to receive, subject to the same
15restrictions applicable to school districts, any grant
16administered by the State Board of Education that is available
17for school districts.
18(Source: P.A. 90-566, eff. 1-2-98.)
 
19    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
20    Sec. 3-14.21. Inspection of schools.
21    (a) The regional superintendent shall inspect and survey
22all public schools under his or her supervision and notify the
23board of education, or the trustees of schools in a district
24with trustees, in writing before July 30, whether or not the

 

 

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1several schools in their district have been kept as required by
2law, using forms provided by the State Board of Education which
3are based on the Health/Life Safety Code for Public Schools
4adopted under Section 2-3.12. The regional superintendent
5shall report his or her findings to the State Board of
6Education on forms provided by the State Board of Education.
7    (b) If the regional superintendent determines that a school
8board has failed in a timely manner to correct urgent items
9identified in a previous life-safety report completed under
10Section 2-3.12 or as otherwise previously ordered by the
11regional superintendent, the regional superintendent shall
12order the school board to adopt and submit to the regional
13superintendent a plan for the immediate correction of the
14building violations. This plan shall be adopted following a
15public hearing that is conducted by the school board on the
16violations and the plan and that is preceded by at least 7
17days' prior notice of the hearing published in a newspaper of
18general circulation within the school district. If the regional
19superintendent determines in the next annual inspection that
20the plan has not been completed and that the violations have
21not been corrected, the regional superintendent shall submit a
22report to the State Board of Education with a recommendation
23that the State Board withhold from payments of general State
24aid or primary State aid due to the district an amount
25necessary to correct the outstanding violations. The State
26Board, upon notice to the school board and to the regional

 

 

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1superintendent, shall consider the report at a meeting of the
2State Board, and may order that a sufficient amount of general
3State aid or primary State aid be withheld from payments due to
4the district to correct the violations. This amount shall be
5paid to the regional superintendent who shall contract on
6behalf of the school board for the correction of the
7outstanding violations.
8    (c) The Office of the State Fire Marshal or a qualified
9fire official, as defined in Section 2-3.12 of this Code, to
10whom the State Fire Marshal has delegated his or her authority
11shall conduct an annual fire safety inspection of each school
12building in this State. The State Fire Marshal or the fire
13official shall coordinate its inspections with the regional
14superintendent. The inspection shall be based on the fire
15safety code authorized in Section 2-3.12 of this Code. Any
16violations shall be reported in writing to the regional
17superintendent and shall reference the specific code sections
18where a discrepancy has been identified within 15 days after
19the inspection has been conducted. The regional superintendent
20shall address those violations that are not corrected in a
21timely manner pursuant to subsection (b) of this Section. The
22inspection must be at no cost to the school district.
23    (d) If a municipality or, in the case of an unincorporated
24area, a county or, if applicable, a fire protection district
25wishes to perform new construction inspections under the
26jurisdiction of a regional superintendent, then the entity must

 

 

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1register this wish with the regional superintendent. These
2inspections must be based on the building code authorized in
3Section 2-3.12 of this Code. The inspections must be at no cost
4to the school district.
5(Source: P.A. 96-734, eff. 8-25-09.)
 
6    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
7    Sec. 7-14A. Annexation Compensation. There shall be no
8accounting made after a mere change in boundaries when no new
9district is created, except that those districts whose
10enrollment increases by 90% or more as a result of annexing
11territory detached from another district pursuant to this
12Article are eligible for supplementary State aid payments in
13accordance with Section 11E-135 of this Code. Eligible annexing
14districts shall apply to the State Board of Education for
15supplementary State aid payments by submitting enrollment
16figures for the year immediately preceding and the year
17immediately following the effective date of the boundary change
18for both the district gaining territory and the district losing
19territory. Copies of any intergovernmental agreements between
20the district gaining territory and the district losing
21territory detailing any transfer of fund balances and staff
22must also be submitted. In all instances of changes in
23boundaries, the district losing territory shall not count the
24average daily attendance of pupils living in the territory
25during the year preceding the effective date of the boundary

 

 

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1change in its claim for reimbursement under Section 18-8 or
218-8.15 for the school year following the effective date of the
3change in boundaries and the district receiving the territory
4shall count the average daily attendance of pupils living in
5the territory during the year preceding the effective date of
6the boundary change in its claim for reimbursement under
7Section 18-8 or 18-8.15 for the school year following the
8effective date of the change in boundaries. The changes to this
9Section made by this amendatory Act of the 95th General
10Assembly are intended to be retroactive and applicable to any
11annexation taking effect on or after July 1, 2004.
12(Source: P.A. 95-707, eff. 1-11-08.)
 
13    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
14    Sec. 10-17a. State, school district, and school report
15cards.
16    (1) By October 31, 2013 and October 31 of each subsequent
17school year, the State Board of Education, through the State
18Superintendent of Education, shall prepare a State report card,
19school district report cards, and school report cards, and
20shall by the most economic means provide to each school
21district in this State, including special charter districts and
22districts subject to the provisions of Article 34, the report
23cards for the school district and each of its schools.
24    (2) In addition to any information required by federal law,
25the State Superintendent shall determine the indicators and

 

 

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1presentation of the school report card, which must include, at
2a minimum, the most current data possessed by the State Board
3of Education related to the following:
4        (A) school characteristics and student demographics,
5    including average class size, average teaching experience,
6    student racial/ethnic breakdown, and the percentage of
7    students classified as low-income; the percentage of
8    students classified as English learners; the percentage of
9    students who have individualized education plans or 504
10    plans that provide for special education services; the
11    percentage of students who annually transferred in or out
12    of the school district; the per-pupil operating
13    expenditure of the school district; and the per-pupil State
14    average operating expenditure for the district type
15    (elementary, high school, or unit);
16        (B) curriculum information, including, where
17    applicable, Advanced Placement, International
18    Baccalaureate or equivalent courses, dual enrollment
19    courses, foreign language classes, school personnel
20    resources (including Career Technical Education teachers),
21    before and after school programs, extracurricular
22    activities, subjects in which elective classes are
23    offered, health and wellness initiatives (including the
24    average number of days of Physical Education per week per
25    student), approved programs of study, awards received,
26    community partnerships, and special programs such as

 

 

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1    programming for the gifted and talented, students with
2    disabilities, and work-study students;
3        (C) student outcomes, including, where applicable, the
4    percentage of students deemed proficient on assessments of
5    State standards, the percentage of students in the eighth
6    grade who pass Algebra, the percentage of students enrolled
7    in post-secondary institutions (including colleges,
8    universities, community colleges, trade/vocational
9    schools, and training programs leading to career
10    certification within 2 semesters of high school
11    graduation), the percentage of students graduating from
12    high school who are college and career ready, and the
13    percentage of graduates enrolled in community colleges,
14    colleges, and universities who are in one or more courses
15    that the community college, college, or university
16    identifies as a developmental course;
17        (D) student progress, including, where applicable, the
18    percentage of students in the ninth grade who have earned 5
19    credits or more without failing more than one core class, a
20    measure of students entering kindergarten ready to learn, a
21    measure of growth, and the percentage of students who enter
22    high school on track for college and career readiness;
23        (E) the school environment, including, where
24    applicable, the percentage of students with less than 10
25    absences in a school year, the percentage of teachers with
26    less than 10 absences in a school year for reasons other

 

 

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1    than professional development, leaves taken pursuant to
2    the federal Family Medical Leave Act of 1993, long-term
3    disability, or parental leaves, the 3-year average of the
4    percentage of teachers returning to the school from the
5    previous year, the number of different principals at the
6    school in the last 6 years, 2 or more indicators from any
7    school climate survey selected or approved by the State and
8    administered pursuant to Section 2-3.153 of this Code, with
9    the same or similar indicators included on school report
10    cards for all surveys selected or approved by the State
11    pursuant to Section 2-3.153 of this Code, and the combined
12    percentage of teachers rated as proficient or excellent in
13    their most recent evaluation; and
14        (F) a school district's and its individual schools'
15    balanced accountability measure, in accordance with
16    Section 2-3.25a of this Code.
17    The school report card shall also provide information that
18allows for comparing the current outcome, progress, and
19environment data to the State average, to the school data from
20the past 5 years, and to the outcomes, progress, and
21environment of similar schools based on the type of school and
22enrollment of low-income students, special education students,
23and English learners.
24    (3) At the discretion of the State Superintendent, the
25school district report card shall include a subset of the
26information identified in paragraphs (A) through (E) of

 

 

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1subsection (2) of this Section, as well as information relating
2to the operating expense per pupil and other finances of the
3school district, and the State report card shall include a
4subset of the information identified in paragraphs (A) through
5(E) of subsection (2) of this Section. The school district
6report card shall include the total and per pupil normal cost
7amount the State contributed to the Teachers' Retirement System
8of the State of Illinois in the prior fiscal year for the
9district's employees, which shall be reported to the State
10Board of Education by the Teachers' Retirement System of the
11State of Illinois.
12    (4) Notwithstanding anything to the contrary in this
13Section, in consultation with key education stakeholders, the
14State Superintendent shall at any time have the discretion to
15amend or update any and all metrics on the school, district, or
16State report card.
17    (5) Annually, no more than 30 calendar days after receipt
18of the school district and school report cards from the State
19Superintendent of Education, each school district, including
20special charter districts and districts subject to the
21provisions of Article 34, shall present such report cards at a
22regular school board meeting subject to applicable notice
23requirements, post the report cards on the school district's
24Internet web site, if the district maintains an Internet web
25site, make the report cards available to a newspaper of general
26circulation serving the district, and, upon request, send the

 

 

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1report cards home to a parent (unless the district does not
2maintain an Internet web site, in which case the report card
3shall be sent home to parents without request). If the district
4posts the report card on its Internet web site, the district
5shall send a written notice home to parents stating (i) that
6the report card is available on the web site, (ii) the address
7of the web site, (iii) that a printed copy of the report card
8will be sent to parents upon request, and (iv) the telephone
9number that parents may call to request a printed copy of the
10report card.
11    (6) Nothing contained in this amendatory Act of the 98th
12General Assembly repeals, supersedes, invalidates, or
13nullifies final decisions in lawsuits pending on the effective
14date of this amendatory Act of the 98th General Assembly in
15Illinois courts involving the interpretation of Public Act
1697-8.
17(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
18eff. 7-10-15; 99-193, eff. 7-30-15; revised 10-21-15.)
 
19    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
20    Sec. 10-19. Length of school term - experimental programs.
21Each school board shall annually prepare a calendar for the
22school term, specifying the opening and closing dates and
23providing a minimum term of at least 185 days to insure 176
24days of actual pupil attendance, computable under Section
2518-8.05 or 18-8.15, except that for the 1980-1981 school year

 

 

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1only 175 days of actual pupil attendance shall be required
2because of the closing of schools pursuant to Section 24-2 on
3January 29, 1981 upon the appointment by the President of that
4day as a day of thanksgiving for the freedom of the Americans
5who had been held hostage in Iran. Any days allowed by law for
6teachers' institutes but not used as such or used as parental
7institutes as provided in Section 10-22.18d shall increase the
8minimum term by the school days not so used. Except as provided
9in Section 10-19.1, the board may not extend the school term
10beyond such closing date unless that extension of term is
11necessary to provide the minimum number of computable days. In
12case of such necessary extension school employees shall be paid
13for such additional time on the basis of their regular
14contracts. A school board may specify a closing date earlier
15than that set on the annual calendar when the schools of the
16district have provided the minimum number of computable days
17under this Section. Nothing in this Section prevents the board
18from employing superintendents of schools, principals and
19other nonteaching personnel for a period of 12 months, or in
20the case of superintendents for a period in accordance with
21Section 10-23.8, or prevents the board from employing other
22personnel before or after the regular school term with payment
23of salary proportionate to that received for comparable work
24during the school term.
25    A school board may make such changes in its calendar for
26the school term as may be required by any changes in the legal

 

 

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1school holidays prescribed in Section 24-2. A school board may
2make changes in its calendar for the school term as may be
3necessary to reflect the utilization of teachers' institute
4days as parental institute days as provided in Section
510-22.18d.
6    The calendar for the school term and any changes must be
7submitted to and approved by the regional superintendent of
8schools before the calendar or changes may take effect.
9    With the prior approval of the State Board of Education and
10subject to review by the State Board of Education every 3
11years, any school board may, by resolution of its board and in
12agreement with affected exclusive collective bargaining
13agents, establish experimental educational programs, including
14but not limited to programs for e-learning days as authorized
15under Section 10-20.56 of this Code, self-directed learning, or
16outside of formal class periods, which programs when so
17approved shall be considered to comply with the requirements of
18this Section as respects numbers of days of actual pupil
19attendance and with the other requirements of this Act as
20respects courses of instruction.
21(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
22    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
23    Sec. 10-22.5a. Attendance by dependents of United States
24military personnel, foreign exchange students, and certain
25nonresident pupils.

 

 

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1    (a) To enter into written agreements with cultural exchange
2organizations, or with nationally recognized eleemosynary
3institutions that promote excellence in the arts, mathematics,
4or science. The written agreements may provide for tuition free
5attendance at the local district school by foreign exchange
6students, or by nonresident pupils of eleemosynary
7institutions. The local board of education, as part of the
8agreement, may require that the cultural exchange program or
9the eleemosynary institutions provide services to the district
10in exchange for the waiver of nonresident tuition.
11    To enter into written agreements with adjacent school
12districts to provide for tuition free attendance by a student
13of the adjacent district when requested for the student's
14health and safety by the student or parent and both districts
15determine that the student's health or safety will be served by
16such attendance. Districts shall not be required to enter into
17such agreements nor be required to alter existing
18transportation services due to the attendance of such
19non-resident pupils.
20    (a-5) If, at the time of enrollment, a dependent of United
21States military personnel is housed in temporary housing
22located outside of a school district, but will be living within
23the district within 60 days after the time of initial
24enrollment, the dependent must be allowed to enroll, subject to
25the requirements of this subsection (a-5), and must not be
26charged tuition. Any United States military personnel

 

 

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1attempting to enroll a dependent under this subsection (a-5)
2shall provide proof that the dependent will be living within
3the district within 60 days after the time of initial
4enrollment. Proof of residency may include, but is not limited
5to, postmarked mail addressed to the military personnel and
6sent to an address located within the district, a lease
7agreement for occupancy of a residence located within the
8district, or proof of ownership of a residence located within
9the district.
10    (b) Nonresident pupils and foreign exchange students
11attending school on a tuition free basis under such agreements
12and nonresident dependents of United States military personnel
13attending school on a tuition free basis may be counted for the
14purposes of determining the apportionment of State aid provided
15under Section 18-8.05 or 18-8.15 of this Code. No organization
16or institution participating in agreements authorized under
17this Section may exclude any individual for participation in
18its program on account of the person's race, color, sex,
19religion or nationality.
20(Source: P.A. 98-739, eff. 7-16-14.)
 
21    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
22    Sec. 10-22.20. Classes for adults and youths whose
23schooling has been interrupted; conditions for State
24reimbursement; use of child care facilities.
25    (a) To establish special classes for the instruction (1) of

 

 

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1persons of age 21 years or over and (2) of persons less than
2age 21 and not otherwise in attendance in public school, for
3the purpose of providing adults in the community and youths
4whose schooling has been interrupted with such additional basic
5education, vocational skill training, and other instruction as
6may be necessary to increase their qualifications for
7employment or other means of self-support and their ability to
8meet their responsibilities as citizens, including courses of
9instruction regularly accepted for graduation from elementary
10or high schools and for Americanization and high school
11equivalency testing review classes.
12    The board shall pay the necessary expenses of such classes
13out of school funds of the district, including costs of student
14transportation and such facilities or provision for child-care
15as may be necessary in the judgment of the board to permit
16maximum utilization of the courses by students with children,
17and other special needs of the students directly related to
18such instruction. The expenses thus incurred shall be subject
19to State reimbursement, as provided in this Section. The board
20may make a tuition charge for persons taking instruction who
21are not subject to State reimbursement, such tuition charge not
22to exceed the per capita cost of such classes.
23    The cost of such instruction, including the additional
24expenses herein authorized, incurred for recipients of
25financial aid under the Illinois Public Aid Code, or for
26persons for whom education and training aid has been authorized

 

 

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1under Section 9-8 of that Code, shall be assumed in its
2entirety from funds appropriated by the State to the Illinois
3Community College Board.
4    (b) The Illinois Community College Board shall establish
5the standards for the courses of instruction reimbursed under
6this Section. The Illinois Community College Board shall
7supervise the administration of the programs. The Illinois
8Community College Board shall determine the cost of instruction
9in accordance with standards established by the Illinois
10Community College Board, including therein other incidental
11costs as herein authorized, which shall serve as the basis of
12State reimbursement in accordance with the provisions of this
13Section. In the approval of programs and the determination of
14the cost of instruction, the Illinois Community College Board
15shall provide for the maximum utilization of federal funds for
16such programs. The Illinois Community College Board shall also
17provide for:
18        (1) the development of an index of need for program
19    planning and for area funding allocations, as defined by
20    the Illinois Community College Board;
21        (2) the method for calculating hours of instruction, as
22    defined by the Illinois Community College Board, claimable
23    for reimbursement and a method to phase in the calculation
24    and for adjusting the calculations in cases where the
25    services of a program are interrupted due to circumstances
26    beyond the control of the program provider;

 

 

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1        (3) a plan for the reallocation of funds to increase
2    the amount allocated for grants based upon program
3    performance as set forth in subsection (d) below; and
4        (4) the development of standards for determining
5    grants based upon performance as set forth in subsection
6    (d) below and a plan for the phased-in implementation of
7    those standards.
8    For instruction provided by school districts and community
9college districts beginning July 1, 1996 and thereafter,
10reimbursement provided by the Illinois Community College Board
11for classes authorized by this Section shall be provided from
12funds appropriated for the reimbursement criteria set forth in
13subsection (c) below.
14    (c) Upon the annual approval of the Illinois Community
15College Board, reimbursement shall be first provided for
16transportation, child care services, and other special needs of
17the students directly related to instruction and then from the
18funds remaining an amount equal to the product of the total
19credit hours or units of instruction approved by the Illinois
20Community College Board, multiplied by the following:
21        (1) For adult basic education, the maximum
22    reimbursement per credit hour or per unit of instruction
23    shall be equal to (i) through fiscal year 2016, the general
24    state aid per pupil foundation level established in
25    subsection (B) of Section 18-8.05, divided by 60, or (ii)
26    in fiscal year 2017 and thereafter, the foundation level

 

 

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1    established pursuant to subsection (b) of Section 18-8.15
2    of this Code, divided by 60;
3        (2) The maximum reimbursement per credit hour or per
4    unit of instruction in subparagraph (1) above shall be
5    weighted for students enrolled in classes defined as
6    vocational skills and approved by the Illinois Community
7    College Board by 1.25;
8        (3) The maximum reimbursement per credit hour or per
9    unit of instruction in subparagraph (1) above shall be
10    multiplied by .90 for students enrolled in classes defined
11    as adult secondary education programs and approved by the
12    Illinois Community College Board;
13        (4) (Blank); and
14        (5) Funding for program years after 1999-2000 shall be
15    determined by the Illinois Community College Board.
16    (d) Upon its annual approval, the Illinois Community
17College Board shall provide grants to eligible programs for
18supplemental activities to improve or expand services under the
19Adult Education Act. Eligible programs shall be determined
20based upon performance outcomes of students in the programs as
21set by the Illinois Community College Board.
22    (e) Reimbursement under this Section shall not exceed the
23actual costs of the approved program.
24    If the amount appropriated to the Illinois Community
25College Board for reimbursement under this Section is less than
26the amount required under this Act, the apportionment shall be

 

 

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1proportionately reduced.
2    School districts and community college districts may
3assess students up to $3.00 per credit hour, for classes other
4than Adult Basic Education level programs, if needed to meet
5program costs.
6    (f) An education plan shall be established for each adult
7or youth whose schooling has been interrupted and who is
8participating in the instructional programs provided under
9this Section.
10    Each school board and community college shall keep an
11accurate and detailed account of the students assigned to and
12receiving instruction under this Section who are subject to
13State reimbursement and shall submit reports of services
14provided commencing with fiscal year 1997 as required by the
15Illinois Community College Board.
16    For classes authorized under this Section, a credit hour or
17unit of instruction is equal to 15 hours of direct instruction
18for students enrolled in approved adult education programs at
19midterm and making satisfactory progress, in accordance with
20standards established by the Illinois Community College Board.
21    (g) Upon proof submitted to the Illinois Department of
22Human Services of the payment of all claims submitted under
23this Section, that Department shall apply for federal funds
24made available therefor and any federal funds so received shall
25be paid into the General Revenue Fund in the State Treasury.
26    School districts or community colleges providing classes

 

 

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1under this Section shall submit applications to the Illinois
2Community College Board for preapproval in accordance with the
3standards established by the Illinois Community College Board.
4Payments shall be made by the Illinois Community College Board
5based upon approved programs. Interim expenditure reports may
6be required by the Illinois Community College Board. Final
7claims for the school year shall be submitted to the regional
8superintendents for transmittal to the Illinois Community
9College Board. Final adjusted payments shall be made by
10September 30.
11    If a school district or community college district fails to
12provide, or is providing unsatisfactory or insufficient
13classes under this Section, the Illinois Community College
14Board may enter into agreements with public or private
15educational or other agencies other than the public schools for
16the establishment of such classes.
17    (h) If a school district or community college district
18establishes child-care facilities for the children of
19participants in classes established under this Section, it may
20extend the use of these facilities to students who have
21obtained employment and to other persons in the community whose
22children require care and supervision while the parent or other
23person in charge of the children is employed or otherwise
24absent from the home during all or part of the day. It may make
25the facilities available before and after as well as during
26regular school hours to school age and preschool age children

 

 

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1who may benefit thereby, including children who require care
2and supervision pending the return of their parent or other
3person in charge of their care from employment or other
4activity requiring absence from the home.
5    The Illinois Community College Board shall pay to the board
6the cost of care in the facilities for any child who is a
7recipient of financial aid under the Illinois Public Aid Code.
8    The board may charge for care of children for whom it
9cannot make claim under the provisions of this Section. The
10charge shall not exceed per capita cost, and to the extent
11feasible, shall be fixed at a level which will permit
12utilization by employed parents of low or moderate income. It
13may also permit any other State or local governmental agency or
14private agency providing care for children to purchase care.
15    After July 1, 1970 when the provisions of Section 10-20.20
16become operative in the district, children in a child-care
17facility shall be transferred to the kindergarten established
18under that Section for such portion of the day as may be
19required for the kindergarten program, and only the prorated
20costs of care and training provided in the Center for the
21remaining period shall be charged to the Illinois Department of
22Human Services or other persons or agencies paying for such
23care.
24    (i) The provisions of this Section shall also apply to
25school districts having a population exceeding 500,000.
26    (j) In addition to claiming reimbursement under this

 

 

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1Section, a school district may claim general State aid under
2Section 18-8.05 or primary State aid under Section 18-8.15 for
3any student under age 21 who is enrolled in courses accepted
4for graduation from elementary or high school and who otherwise
5meets the requirements of Section 18-8.05 or 18-8.15, as
6applicable.
7(Source: P.A. 98-718, eff. 1-1-15.)
 
8    (105 ILCS 5/10-29)
9    Sec. 10-29. Remote educational programs.
10    (a) For purposes of this Section, "remote educational
11program" means an educational program delivered to students in
12the home or other location outside of a school building that
13meets all of the following criteria:
14        (1) A student may participate in the program only after
15    the school district, pursuant to adopted school board
16    policy, and a person authorized to enroll the student under
17    Section 10-20.12b of this Code determine that a remote
18    educational program will best serve the student's
19    individual learning needs. The adopted school board policy
20    shall include, but not be limited to, all of the following:
21            (A) Criteria for determining that a remote
22        educational program will best serve a student's
23        individual learning needs. The criteria must include
24        consideration of, at a minimum, a student's prior
25        attendance, disciplinary record, and academic history.

 

 

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1            (B) Any limitations on the number of students or
2        grade levels that may participate in a remote
3        educational program.
4            (C) A description of the process that the school
5        district will use to approve participation in the
6        remote educational program. The process must include
7        without limitation a requirement that, for any student
8        who qualifies to receive services pursuant to the
9        federal Individuals with Disabilities Education
10        Improvement Act of 2004, the student's participation
11        in a remote educational program receive prior approval
12        from the student's individualized education program
13        team.
14            (D) A description of the process the school
15        district will use to develop and approve a written
16        remote educational plan that meets the requirements of
17        subdivision (5) of this subsection (a).
18            (E) A description of the system the school district
19        will establish to calculate the number of clock hours a
20        student is participating in instruction in accordance
21        with the remote educational program.
22            (F) A description of the process for renewing a
23        remote educational program at the expiration of its
24        term.
25            (G) Such other terms and provisions as the school
26        district deems necessary to provide for the

 

 

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1        establishment and delivery of a remote educational
2        program.
3        (2) The school district has determined that the remote
4    educational program's curriculum is aligned to State
5    learning standards and that the program offers instruction
6    and educational experiences consistent with those given to
7    students at the same grade level in the district.
8        (3) The remote educational program is delivered by
9    instructors that meet the following qualifications:
10            (A) they are certificated under Article 21 of this
11        Code;
12            (B) they meet applicable highly qualified criteria
13        under the federal No Child Left Behind Act of 2001; and
14            (C) they have responsibility for all of the
15        following elements of the program: planning
16        instruction, diagnosing learning needs, prescribing
17        content delivery through class activities, assessing
18        learning, reporting outcomes to administrators and
19        parents and guardians, and evaluating the effects of
20        instruction.
21        (4) During the period of time from and including the
22    opening date to the closing date of the regular school term
23    of the school district established pursuant to Section
24    10-19 of this Code, participation in a remote educational
25    program may be claimed for general State aid purposes under
26    Section 18-8.05 of this Code or primary State aid purposes

 

 

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1    under Section 18-8.15 of this Code on any calendar day,
2    notwithstanding whether the day is a day of pupil
3    attendance or institute day on the school district's
4    calendar or any other provision of law restricting
5    instruction on that day. If the district holds year-round
6    classes in some buildings, the district shall classify each
7    student's participation in a remote educational program as
8    either on a year-round or a non-year-round schedule for
9    purposes of claiming general State aid or primary State
10    aid. Outside of the regular school term of the district,
11    the remote educational program may be offered as part of
12    any summer school program authorized by this Code.
13        (5) Each student participating in a remote educational
14    program must have a written remote educational plan that
15    has been approved by the school district and a person
16    authorized to enroll the student under Section 10-20.12b of
17    this Code. The school district and a person authorized to
18    enroll the student under Section 10-20.12b of this Code
19    must approve any amendment to a remote educational plan.
20    The remote educational plan must include, but is not
21    limited to, all of the following:
22            (A) Specific achievement goals for the student
23        aligned to State learning standards.
24            (B) A description of all assessments that will be
25        used to measure student progress, which description
26        shall indicate the assessments that will be

 

 

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1        administered at an attendance center within the school
2        district.
3            (C) A description of the progress reports that will
4        be provided to the school district and the person or
5        persons authorized to enroll the student under Section
6        10-20.12b of this Code.
7            (D) Expectations, processes, and schedules for </