Full Text of SB3681 96th General Assembly
SB3681sam001 96TH GENERAL ASSEMBLY
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Sen. Kimberly A. Lightford
Filed: 3/2/2010
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| AMENDMENT TO SENATE BILL 3681
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| AMENDMENT NO. ______. Amend Senate Bill 3681 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The School Code is amended by changing Section | 5 |
| 1A-8 as follows:
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| (105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
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| Sec. 1A-8. Powers of the Board in Assisting Districts | 8 |
| Deemed in Financial
Difficulties. To promote the financial | 9 |
| integrity of school districts, the
State Board of Education | 10 |
| shall be provided the necessary powers to promote
sound | 11 |
| financial management and continue operation of the public | 12 |
| schools.
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| The State Superintendent of Education may require a school | 14 |
| district, including any district subject to Article 34A of this | 15 |
| Code, to share financial information relevant to a proper | 16 |
| investigation of the district's financial condition and the |
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| delivery of appropriate State financial, technical, and | 2 |
| consulting services to the district if the district (i) has | 3 |
| been designated, through the State Board of Education's School | 4 |
| District Financial Profile System, as on financial warning or | 5 |
| financial watch status, (ii) has failed to file an annual | 6 |
| financial report, annual budget, deficit reduction plan, or | 7 |
| other financial information as required by law, or (iii) has | 8 |
| been identified, through the district's annual audit or other | 9 |
| financial and management information, as in serious financial | 10 |
| difficulty in the current or next school year , or (iv) is | 11 |
| determined to be likely to fail to fully meet any regularly | 12 |
| scheduled, payroll-period obligations when due or any debt | 13 |
| service payments when due or both . In addition to financial, | 14 |
| technical, and consulting services provided by the State Board | 15 |
| of Education, at the request of a school district, the State | 16 |
| Superintendent may provide for an independent financial | 17 |
| consultant to assist the district review its financial | 18 |
| condition and options.
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| The State Board of Education, after proper investigation of | 20 |
| a district's
financial condition, may certify that a district, | 21 |
| including any district
subject to Article 34A, is in financial | 22 |
| difficulty
when any of the following conditions occur:
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| (1) The district has issued school or teacher orders | 24 |
| for wages as permitted in Sections
8-16, 32-7.2 and 34-76 | 25 |
| of this Code . ;
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| (2) The district has issued tax anticipation warrants |
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| or tax
anticipation notes in anticipation of a second | 2 |
| year's taxes when warrants or
notes in anticipation of | 3 |
| current year taxes are still outstanding, as
authorized by | 4 |
| Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has | 5 |
| issued short-term debt against 2 future revenue sources, | 6 |
| such as, but not limited to, tax anticipation warrants and | 7 |
| general State Aid certificates or tax anticipation | 8 |
| warrants and revenue anticipation notes . ;
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| (3) The district has for 2 consecutive years shown an | 10 |
| excess
of expenditures and other financing uses over | 11 |
| revenues and other financing
sources and beginning fund | 12 |
| balances on its annual financial report for the
aggregate | 13 |
| totals of the Educational, Operations and Maintenance,
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| Transportation, and Working Cash Funds . ;
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| (4) The district refuses to provide financial | 16 |
| information or cooperate with the State Superintendent in | 17 |
| an investigation of the district's financial condition. | 18 |
| (5) The district is likely to fail to fully meet any | 19 |
| regularly scheduled, payroll-period obligations when due | 20 |
| or any debt service payments when due or both.
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| No school district shall be certified by the State Board of | 22 |
| Education to be in financial difficulty solely by
reason of any | 23 |
| of the above circumstances arising as a result of (i) the | 24 |
| failure
of the county to make any distribution of property tax | 25 |
| money due the district
at the time such distribution is due or | 26 |
| (ii) the failure of this State to make timely payments of |
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| general State aid or any of the mandated categoricals; or if | 2 |
| the district clearly demonstrates
to the satisfaction of the | 3 |
| State Board of Education at the time of its
determination that | 4 |
| such condition no longer exists. If the State Board of
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| Education certifies that a district in a city with 500,000 | 6 |
| inhabitants or
more is in financial difficulty, the State Board | 7 |
| shall so notify the
Governor and the Mayor of the city in which | 8 |
| the district is located. The
State Board of Education may | 9 |
| require school districts certified in
financial difficulty, | 10 |
| except those districts subject to Article 34A, to
develop, | 11 |
| adopt and submit a financial plan within 45 days after
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| certification of financial difficulty. The financial plan | 13 |
| shall be
developed according to guidelines presented to the | 14 |
| district by the State
Board of Education within 14 days of | 15 |
| certification. Such guidelines shall
address the specific | 16 |
| nature of each district's financial difficulties. Any
proposed | 17 |
| budget of the district shall be consistent with the financial | 18 |
| plan
submitted to and
approved by the State Board of Education.
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| A district certified to be in financial difficulty, other | 20 |
| than a district
subject to Article 34A, shall report to the | 21 |
| State Board of Education at
such times and in such manner as | 22 |
| the State Board may direct, concerning the
district's | 23 |
| compliance with each financial plan. The State Board may review
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| the district's operations, obtain budgetary data and financial | 25 |
| statements,
require the district to produce reports, and have | 26 |
| access to any other
information in the possession of the |
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| district that it deems relevant. The
State Board may issue | 2 |
| recommendations or directives within its powers to
the district | 3 |
| to assist in compliance with the financial plan. The district
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| shall produce such budgetary data, financial statements, | 5 |
| reports and other
information and comply with such directives. | 6 |
| If the State Board of Education
determines that a district has | 7 |
| failed to comply with its financial plan, the
State Board of | 8 |
| Education may rescind approval of the plan and appoint a
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| Financial Oversight Panel for the district as provided in | 10 |
| Section 1B-4. This
action shall be taken only after the | 11 |
| district has been given notice and an
opportunity to appear | 12 |
| before the State Board of Education to discuss its
failure to | 13 |
| comply with its financial plan.
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| No bonds, notes, teachers orders, tax anticipation | 15 |
| warrants or other
evidences of indebtedness shall be issued or | 16 |
| sold by a school district or
be legally binding upon or | 17 |
| enforceable against a local board of education
of a district | 18 |
| certified to be in financial difficulty unless and until the
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| financial plan required under this Section has been approved by | 20 |
| the State
Board of Education.
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| Any financial profile compiled and distributed by the State | 22 |
| Board of Education in Fiscal Year 2009 or any fiscal year | 23 |
| thereafter
shall incorporate such adjustments as may be needed | 24 |
| in the profile scores to reflect the financial effects of the
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| inability or refusal of the State of Illinois to make timely
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| disbursements of any general State aid or mandated categorical |
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| aid payments due school districts or to fully reimburse
school | 2 |
| districts for mandated categorical programs pursuant to
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| reimbursement formulas provided in this School Code.
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| (Source: P.A. 96-668, eff. 8-25-09.)
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| Section 99. Effective date. This Act takes effect upon | 6 |
| becoming law.".
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