State of Illinois
90th General Assembly
Legislation

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90_HB1269enr

      SEE INDEX
          Creates the First 1997 General  Revisory  Act.   Combines
      multiple versions of Sections amended by more than one Public
      Act.    Renumbers  Sections  of  various  Acts  to  eliminate
      duplication.   Corrects  obsolete  citations  and   technical
      errors.  Makes stylistic changes.  Effective July 1, 1997.
                                                     LRB9001000EGfg
HB1269 Enrolled                                LRB9001000EGfg
 1        AN ACT to revise the law by combining multiple enactments
 2    and making technical corrections.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5                              ARTICLE 1
 6                         GENERAL PROVISIONS
 7        Section 1-1. This Act may be  cited  as  the  First  1997
 8    General Revisory Act.
 9        Section  1-2.  This  Act  is  not  intended  to  make any
10    substantive change in the law.  It reconciles conflicts  that
11    have arisen from multiple amendments and enactments and makes
12    technical corrections and revisions in the law.
13        In  this  Act,  the  reference at the end of each amended
14    Section indicates the sources in the Session Laws of Illinois
15    that were used  in  the  preparation  of  the  text  of  that
16    Section.   The  text  of  the Section included in this Act is
17    intended to include the different  versions  of  the  Section
18    found in the Public Acts included in the list of sources, but
19    may  not include other versions of the Section to be found in
20    Public Acts not included in the list of sources.  The list of
21    sources is not a part of the text of the Section.
22        Section 1-3. This  Act  is  divided  into  the  following
23    Articles:
24        ARTICLE 1. General Provisions.
25        ARTICLE 2. Combining Revisories.
26        ARTICLE 3. Technical Corrections.
27        ARTICLE 4. Effective Date and Nonacceleration.
28                              ARTICLE 2
HB1269 Enrolled            -2-                 LRB9001000EGfg
 1                        COMBINING REVISORIES
 2        Section 2-1. This Article revises and, where appropriate,
 3    renumbers certain Sections that have been added or amended by
 4    more than one Public Act.  This Article also corrects errors,
 5    revises  cross-references, and deletes obsolete text in those
 6    Sections.  Public Acts 89-443 through 89-707 were  considered
 7    in the preparation of this Article.
 8        (5 ILCS 80/4.8a rep.)
 9        Section 2-5.  The Regulatory Agency Sunset Act is amended
10    by repealing Section 4.8a.
11        Section  2-10.   The  Regulatory  Agency  Sunset  Act  is
12    amended by changing Section 4.9 as follows:
13        (5 ILCS 80/4.9) (from Ch. 127, par. 1904.9)
14        Sec.  4.9.  The  following Acts are repealed December 31,
15    1997:
16        The Podiatric Medical Practice Act of 1987.
17        The   Nursing   Home   Administrators    Licensing    and
18    Disciplinary Act.
19        The Physician Assistant Practice Act of 1987.
20        The Illinois Nursing Act of 1987.
21        The Clinical Social Work and Social Work Practice Act.
22        The  Illinois  Speech-Language  Pathology  and  Audiology
23    Practice Act.
24        The Marriage and Family Therapy Licensing Act.
25    (Source: P.A.  89-702,  eff.  7-1-97;  89-706,  eff. 1-31-97;
26    revised 2-7-97.)
27        Section 2-15.  The Illinois Public Labor Relations Act is
28    amended by changing Section 3 as follows:
HB1269 Enrolled            -3-                 LRB9001000EGfg
 1        (5 ILCS 315/3) (from Ch. 48, par. 1603)
 2        Sec. 3.  Definitions.  As used in this  Act,  unless  the
 3    context otherwise requires:
 4        (a)  "Board"   or  "Governing  Board"  means  either  the
 5    Illinois State Labor Relations Board or  the  Illinois  Local
 6    Labor Relations Board.
 7        (b)  "Collective  bargaining" means bargaining over terms
 8    and conditions of employment,  including  hours,  wages,  and
 9    other  conditions of employment, as detailed in Section 7 and
10    which are not excluded by Section 4.
11        (c)  "Confidential employee" means an  employee  who,  in
12    the  regular course of his or her duties, assists and acts in
13    a confidential capacity to persons who formulate,  determine,
14    and  effectuate  management  policies  with  regard  to labor
15    relations or who, in the regular course of his or her duties,
16    has  authorized  access  to  information  relating   to   the
17    effectuation   or   review   of   the  employer's  collective
18    bargaining policies.
19        (d)  "Craft employees" means skilled  journeymen,  crafts
20    persons, and their apprentices and helpers.
21        (e)  "Essential  services  employees"  means those public
22    employees  performing  functions  so   essential   that   the
23    interruption or termination of the function will constitute a
24    clear  and  present  danger  to  the health and safety of the
25    persons in the affected community.
26        (f)  "Exclusive representative", except with  respect  to
27    non-State  fire  fighters  and  paramedics  employed  by fire
28    departments and fire protection  districts,  non-State  peace
29    officers,  and  peace  officers  in  the  Department of State
30    Police, means  the  labor  organization  that  has  been  (i)
31    designated  by  the Board as the representative of a majority
32    of public employees in  an  appropriate  bargaining  unit  in
33    accordance  with  the  procedures contained in this Act, (ii)
34    historically recognized by  the  State  of  Illinois  or  any
HB1269 Enrolled            -4-                 LRB9001000EGfg
 1    political  subdivision  of the State before July 1, 1984 (the
 2    effective date of this Act) as the  exclusive  representative
 3    of  the employees in an appropriate bargaining unit, or (iii)
 4    after  July  1,  1984  (the  effective  date  of  this   Act)
 5    recognized  by  an  employer upon evidence, acceptable to the
 6    Board, that the labor organization has been designated as the
 7    exclusive representative by a majority of the employees in an
 8    appropriate bargaining unit.
 9        With respect to non-State fire  fighters  and  paramedics
10    employed  by  fire departments and fire protection districts,
11    non-State  peace  officers,  and  peace   officers   in   the
12    Department  of State Police, "exclusive representative" means
13    the labor organization that has been (i)  designated  by  the
14    Board  as  the representative of a majority of peace officers
15    or  fire  fighters  in  an  appropriate  bargaining  unit  in
16    accordance with the procedures contained in  this  Act,  (ii)
17    historically  recognized  by  the  State  of  Illinois or any
18    political subdivision of the State  before  January  1,  1986
19    (the  effective  date  of this amendatory Act of 1985) as the
20    exclusive representative by a majority of the peace  officers
21    or  fire fighters in an appropriate bargaining unit, or (iii)
22    after January 1, 1986 (the effective date of this  amendatory
23    Act  of  1985)  recognized  by  an  employer  upon  evidence,
24    acceptable to the Board, that the labor organization has been
25    designated  as  the exclusive representative by a majority of
26    the  peace  officers  or  fire  fighters  in  an  appropriate
27    bargaining unit.
28        (g)  "Fair share agreement" means  an  agreement  between
29    the  employer and an employee organization under which all or
30    any of the employees in  a  collective  bargaining  unit  are
31    required to pay their proportionate share of the costs of the
32    collective  bargaining  process, contract administration, and
33    pursuing matters affecting wages, hours, and other conditions
34    of employment, but not to exceed the amount of dues uniformly
HB1269 Enrolled            -5-                 LRB9001000EGfg
 1    required of members. The amount certified  by  the  exclusive
 2    representative  shall  not include any fees for contributions
 3    related to the election  or  support  of  any  candidate  for
 4    political  office.  Nothing  in  this  subsection  (g)  shall
 5    preclude   an   employee   from  making  voluntary  political
 6    contributions in conjunction  with  his  or  her  fair  share
 7    payment.
 8        (g-1)  "Fire fighter" means, for the purposes of this Act
 9    only,  any person who has been or is hereafter appointed to a
10    fire department or fire protection district or employed by  a
11    state  university  and  sworn or commissioned to perform fire
12    fighter duties or paramedic duties, except that the following
13    persons are not included: part-time fire fighters, auxiliary,
14    reserve or voluntary fire fighters,  including  paid  on-call
15    fire  fighters,  clerks  and  dispatchers  or  other civilian
16    employees of a fire department or  fire  protection  district
17    who  are  not  routinely  expected  to  perform  fire fighter
18    duties, or elected officials.
19        (g-2)  "General Assembly of the State of Illinois"  means
20    the  legislative  branch  of  the  government of the State of
21    Illinois,  as  provided  for  under   Article   IV   of   the
22    Constitution  of  the  State of Illinois, and includes but is
23    not limited to the House of Representatives, the Senate,  the
24    Speaker  of the House of Representatives, the Minority Leader
25    of the House of Representatives, the President of the Senate,
26    the Minority Leader of the Senate,  the  Joint  Committee  on
27    Legislative  Support  Services  and  any  legislative support
28    services  agency  listed  in   the   Legislative   Commission
29    Reorganization Act of 1984.
30        (h)  "Governing  body"  means,  in the case of the State,
31    the  State  Labor  Relations  Board,  the  Director  of   the
32    Department  of  Central Management Services, and the Director
33    of the Department of Labor; the county board in the case of a
34    county;  the  corporate  authorities  in  the   case   of   a
HB1269 Enrolled            -6-                 LRB9001000EGfg
 1    municipality;  and the appropriate body authorized to provide
 2    for expenditures of its funds in the case of any  other  unit
 3    of government.
 4        (i)  "Labor organization" means any organization in which
 5    public employees participate and that exists for the purpose,
 6    in  whole  or  in  part,  of  dealing  with a public employer
 7    concerning wages, hours, and other terms  and  conditions  of
 8    employment, including the settlement of grievances.
 9        (j)  "Managerial  employee"  means  an  individual who is
10    engaged predominantly in executive and  management  functions
11    and  is  charged  with  the  responsibility  of directing the
12    effectuation of management policies and practices.
13        (k)  "Peace officer" means, for the purposes of this  Act
14    only, any persons who have been or are hereafter appointed to
15    a   police   force,   department,  or  agency  and  sworn  or
16    commissioned  to  perform  police  duties,  except  that  the
17    following  persons  are  not   included:   part-time   police
18    officers,   special  police  officers,  auxiliary  police  as
19    defined by Section 3.1-30-20 of the Illinois Municipal  Code,
20    night watchmen, "merchant police", court security officers as
21    defined  by  Section 3-6012.1 of the Counties Code, temporary
22    employees, traffic guards or wardens, civilian parking  meter
23    and   parking   facilities  personnel  or  other  individuals
24    specially appointed to aid  or  direct  traffic  at  or  near
25    schools  or  public  functions  or to aid in civil defense or
26    disaster,  parking  enforcement   employees   who   are   not
27    commissioned  as peace officers and who are not armed and who
28    are not routinely expected to  effect  arrests,  parking  lot
29    attendants,   clerks   and   dispatchers  or  other  civilian
30    employees of  a  police  department  who  are  not  routinely
31    expected to effect arrests, or elected officials.
32        (l)  "Person"  includes  one  or  more individuals, labor
33    organizations, public employees, associations,  corporations,
34    legal  representatives,  trustees,  trustees  in  bankruptcy,
HB1269 Enrolled            -7-                 LRB9001000EGfg
 1    receivers,   or  the  State  of  Illinois  or  any  political
 2    subdivision of the State or  governing  body,  but  does  not
 3    include  the General Assembly of the State of Illinois or any
 4    individual employed by the General Assembly of the  State  of
 5    Illinois.
 6        (m)  "Professional  employee"  means any employee engaged
 7    in work predominantly intellectual and  varied  in  character
 8    rather  than  routine  mental, manual, mechanical or physical
 9    work; involving the consistent  exercise  of  discretion  and
10    adjustment  in  its performance; of such a character that the
11    output  produced  or  the  result  accomplished   cannot   be
12    standardized  in  relation  to  a  given  period of time; and
13    requiring  advanced  knowledge  in  a  field  of  science  or
14    learning  customarily  acquired  by  a  prolonged  course  of
15    specialized  intellectual  instruction  and   study   in   an
16    institution   of   higher   learning   or   a   hospital,  as
17    distinguished from  a  general  academic  education  or  from
18    apprenticeship or from training in the performance of routine
19    mental,  manual,  or  physical processes; or any employee who
20    has  completed  the  courses  of   specialized   intellectual
21    instruction  and  study prescribed in this subsection (m) and
22    is  performing  related  work  under  the  supervision  of  a
23    professional person  to  qualify  to  become  a  professional
24    employee as defined in this subsection (m).
25        (n)  "Public employee" or "employee", for the purposes of
26    this Act, means any individual employed by a public employer,
27    including  interns  and  residents  at  public hospitals, but
28    excluding all of the  following:  employees  of  the  General
29    Assembly   of  the  State  of  Illinois;  elected  officials;
30    executive  heads  of  a  department;  members  of  boards  or
31    commissions; employees of any  agency,  board  or  commission
32    created  by  this Act; employees appointed to State positions
33    of a temporary or emergency nature; all employees  of  school
34    districts    and   higher   education   institutions   except
HB1269 Enrolled            -8-                 LRB9001000EGfg
 1    firefighters  and  peace  officers  employed   by   a   state
 2    university;   managerial   employees;  short-term  employees;
 3    confidential   employees;   independent   contractors;    and
 4    supervisors except as provided in this Act.
 5        Notwithstanding  Section  9, subsection (c), or any other
 6    provisions of this Act, all peace officers above the rank  of
 7    captain   in   municipalities   with   more   than  1,000,000
 8    inhabitants shall be excluded from this Act.
 9        (o)  "Public employer" or "employer" means the  State  of
10    Illinois;  any  political  subdivision  of the State, unit of
11    local government or school  district;  authorities  including
12    departments,  divisions,  bureaus,  boards,  commissions,  or
13    other  agencies  of  the  foregoing  entities; and any person
14    acting within the scope of his or her authority,  express  or
15    implied,  on  behalf  of  those  entities in dealing with its
16    employees. "Public employer" or "employer" as  used  in  this
17    Act, however, does not mean and shall not include the General
18    Assembly  of  the State of Illinois and educational employers
19    or employers as defined in  the  Illinois  Educational  Labor
20    Relations  Act,  except with respect to a state university in
21    its employment of firefighters  and  peace  officers.  County
22    boards  and  county  sheriffs shall be designated as joint or
23    co-employers of county peace  officers  appointed  under  the
24    authority  of  a  county sheriff.  Nothing in this subsection
25    (o) shall be construed to prevent  the  State  Board  or  the
26    Local  Board  from  determining  that  employers are joint or
27    co-employers.
28        (p)  "Security  employee"  means  an  employee   who   is
29    responsible  for  the  supervision  and control of inmates at
30    correctional  facilities.   The  term  also  includes   other
31    non-security   employees   in  bargaining  units  having  the
32    majority of employees being responsible for  the  supervision
33    and control of inmates at correctional facilities.
34        (q)  "Short-term  employee"  means  an  employee  who  is
HB1269 Enrolled            -9-                 LRB9001000EGfg
 1    employed for less that 2 consecutive calendar quarters during
 2    a  calendar year and who does not have a reasonable assurance
 3    that he or she will be rehired by the same employer  for  the
 4    same service in a subsequent calendar year.
 5        (r)  "Supervisor"  is an employee whose principal work is
 6    substantially different from that of his or her  subordinates
 7    and  who  has  authority, in the interest of the employer, to
 8    hire, transfer, suspend, lay off, recall, promote, discharge,
 9    direct, reward, or  discipline  employees,  to  adjust  their
10    grievances, or to effectively recommend any of those actions,
11    if  the exercise of that authority is not of a merely routine
12    or clerical  nature,  but  requires  the  consistent  use  of
13    independent   judgment.   Except   with   respect  to  police
14    employment,  the  term  "supervisor"  includes   only   those
15    individuals  who  devote  a preponderance of their employment
16    time  to  exercising  that   authority,   State   supervisors
17    notwithstanding.   In  addition,  in  determining supervisory
18    status in police employment, rank shall not be determinative.
19    The Board shall consider,  as  evidence  of  bargaining  unit
20    inclusion  or  exclusion, the common law enforcement policies
21    and  relationships   between   police   officer   ranks   and
22    certification under applicable civil service law, ordinances,
23    personnel  codes,  or  Division  2.1  of  Article  10  of the
24    Illinois Municipal Code, but these factors shall not  be  the
25    sole  or  predominant  factors  considered  by  the  Board in
26    determining police supervisory status.
27        Notwithstanding   the   provisions   of   the   preceding
28    paragraph, in determining supervisory status in fire  fighter
29    employment, no fire fighter shall be excluded as a supervisor
30    who  has established representation rights under Section 9 of
31    this Act.  Further, in  new  fire  fighter  units,  employees
32    shall consist of fire fighters of the rank of company officer
33    and  below.  If  a  company  officer otherwise qualifies as a
34    supervisor under the preceding paragraph, however, he or  she
HB1269 Enrolled            -10-                LRB9001000EGfg
 1    shall  not be included in the fire fighter unit.  If there is
 2    no rank  between  that  of  chief  and  the  highest  company
 3    officer,  the employer may designate a position on each shift
 4    as  a  Shift  Commander,  and  the  persons  occupying  those
 5    positions shall be supervisors.  All other ranks  above  that
 6    of company officer shall be supervisors.
 7        (s) (1)  "Unit"  means  a class of jobs or positions that
 8    are held by employees whose collective interests may suitably
 9    be  represented  by  a  labor  organization  for   collective
10    bargaining.   Except  with respect to non-State fire fighters
11    and  paramedics  employed  by  fire  departments   and   fire
12    protection  districts,  non-State  peace  officers, and peace
13    officers in the Department of State Police, a bargaining unit
14    determined by the Board shall not include both employees  and
15    supervisors,  or  supervisors  only,  except  as  provided in
16    paragraph  (2)  of  this  subsection  (s)  and   except   for
17    bargaining  units in existence on July 1, 1984 (the effective
18    date of this Act).  With respect to non-State  fire  fighters
19    and   paramedics   employed  by  fire  departments  and  fire
20    protection districts, non-State  peace  officers,  and  peace
21    officers in the Department of State Police, a bargaining unit
22    determined  by  the  Board shall not include both supervisors
23    and nonsupervisors, or supervisors only, except  as  provided
24    in  paragraph  (2)  of  this  subsection  (s)  and except for
25    bargaining  units  in  existence  on  January  1,  1986  (the
26    effective date of this amendatory Act of 1985).  A bargaining
27    unit determined by the Board to contain peace officers  shall
28    contain   no  employees  other  than  peace  officers  unless
29    otherwise  agreed  to  by  the   employer   and   the   labor
30    organization     or     labor     organizations     involved.
31    Notwithstanding any other provision of this Act, a bargaining
32    unit,  including  a  historical  bargaining  unit, containing
33    sworn peace officers of the Department of  Natural  Resources
34    (formerly  designated  the  Department of Conservation) shall
HB1269 Enrolled            -11-                LRB9001000EGfg
 1    contain no employees other than  such  sworn  peace  officers
 2    upon  the  effective  date  of this amendatory Act of 1990 or
 3    upon  the  expiration  date  of  any  collective   bargaining
 4    agreement   in   effect  upon  the  effective  date  of  this
 5    amendatory  Act  of  1990  covering  both  such  sworn  peace
 6    officers and other employees.
 7        (2)  Notwithstanding the exclusion  of  supervisors  from
 8    bargaining  units  as  provided  in  paragraph  (1)  of  this
 9    subsection  (s),  a  public  employer may agree to permit its
10    supervisory  employees  to  form  bargaining  units  and  may
11    bargain with those units.  This Act shall apply if the public
12    employer chooses to bargain under this subsection.
13    (Source: P.A. 89-108, eff.  7-7-95;  89-409,  eff.  11-15-95;
14    89-445,  eff.  2-7-96;  89-626,  eff.  8-9-96;  89-685,  eff.
15    6-1-97; revised 1-14-97.)
16        Section 2-20.  The State Employees Group Insurance Act of
17    1971  is  amended by changing Section 3 and by setting forth,
18    amending, and renumbering multiple versions of Section 6.7 as
19    follows:
20        (5 ILCS 375/3) (from Ch. 127, par. 523)
21        Sec.  3.  Definitions.   Unless  the  context   otherwise
22    requires, the following words and phrases as used in this Act
23    shall have the following meanings.  The Department may define
24    these  and other words and phrases separately for the purpose
25    of implementing specific programs  providing  benefits  under
26    this Act.
27        (a)  "Administrative   service  organization"  means  any
28    person, firm or corporation experienced in  the  handling  of
29    claims  which  is  fully  qualified,  financially  sound  and
30    capable  of meeting the service requirements of a contract of
31    administration executed with the Department.
32        (b)  "Annuitant" means (1) an employee  who  retires,  or
HB1269 Enrolled            -12-                LRB9001000EGfg
 1    has  retired,  on  or  after  January 1, 1966 on an immediate
 2    annuity under the provisions of Articles 2, 14, 15 (including
 3    an employee who has retired and  is  receiving  a  retirement
 4    annuity  under  an optional program established under Section
 5    15-158.2 and who would also  be  eligible  for  a  retirement
 6    annuity  had  that  person  been  a  participant in the State
 7    University Retirement  System),  paragraphs  (b)  or  (c)  of
 8    Section  16-106,  or Article 18 of the Illinois Pension Code;
 9    (2) any person who was  receiving  group  insurance  coverage
10    under  this  Act as of March 31, 1978 by reason of his status
11    as an annuitant, even though the annuity in relation to which
12    such coverage was provided is a proportional annuity based on
13    less than the  minimum  period  of  service  required  for  a
14    retirement annuity in the system involved; (3) any person not
15    otherwise   covered   by  this  Act  who  has  retired  as  a
16    participating member under Article 2 of the Illinois  Pension
17    Code  but  is  ineligible  for  the  retirement annuity under
18    Section 2-119 of the Illinois Pension Code; (4) the spouse of
19    any person  who  is  receiving  a  retirement  annuity  under
20    Article  18  of  the Illinois Pension Code and who is covered
21    under  a  group  health  insurance  program  sponsored  by  a
22    governmental employer other than the State  of  Illinois  and
23    who  has  irrevocably  elected  to  waive his or her coverage
24    under this Act and to have his or her  spouse  considered  as
25    the  "annuitant"  under this Act and not as a "dependent"; or
26    (5) an employee who retires, or has retired, from a qualified
27    position, as determined according to rules promulgated by the
28    Director, under a qualified local government or  a  qualified
29    rehabilitation  facility  or  a  qualified  domestic violence
30    shelter or service. (For definition  of  "retired  employee",
31    see (p) post).
32        (c)  "Carrier"   means   (1)   an  insurance  company,  a
33    corporation  organized  under  the  Limited  Health   Service
34    Organization Act or the Voluntary Health Services Plan Act, a
HB1269 Enrolled            -13-                LRB9001000EGfg
 1    partnership,  or other nongovernmental organization, which is
 2    authorized  to  do  group  life  or  group  health  insurance
 3    business in Illinois, or (2)  the  State  of  Illinois  as  a
 4    self-insurer.
 5        (d)  "Compensation"  means  salary  or wages payable on a
 6    regular payroll by the State Treasurer on a  warrant  of  the
 7    State Comptroller out of any State, trust or federal fund, or
 8    by  the Governor of the State through a disbursing officer of
 9    the State out of a trust or out of federal funds, or  by  any
10    Department  out  of State, trust, federal or other funds held
11    by the State Treasurer or the Department, to any  person  for
12    personal   services  currently  performed,  and  ordinary  or
13    accidental disability  benefits  under  Articles  2,  14,  15
14    (including  ordinary  or accidental disability benefits under
15    an optional  program  established  under  Section  15-158.2),
16    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
17    Illinois  Pension Code, for disability incurred after January
18    1, 1966, or benefits payable under the Workers'  Compensation
19    or Occupational Diseases Act or benefits payable under a sick
20    pay  plan  established  in  accordance with Section 36 of the
21    State Finance Act. "Compensation" also means salary or  wages
22    paid  to  an  employee  of  any qualified local government or
23    qualified rehabilitation facility  or  a  qualified  domestic
24    violence shelter or service.
25        (e)  "Commission"   means   the   State  Employees  Group
26    Insurance  Advisory  Commission  authorized  by   this   Act.
27    Commencing  July  1,  1984,  "Commission" as used in this Act
28    means  the  Illinois  Economic  and  Fiscal   Commission   as
29    established  by the Legislative Commission Reorganization Act
30    of 1984.
31        (f)  "Contributory", when  referred  to  as  contributory
32    coverage,  shall  mean optional coverages or benefits elected
33    by the member toward the cost  of  which  such  member  makes
34    contribution, or which are funded in whole or in part through
HB1269 Enrolled            -14-                LRB9001000EGfg
 1    the acceptance of a reduction in earnings or the foregoing of
 2    an increase in earnings by an employee, as distinguished from
 3    noncontributory  coverage or benefits which are paid entirely
 4    by the State of Illinois without reduction  of  the  member's
 5    salary.
 6        (g)  "Department"   means  any  department,  institution,
 7    board, commission, officer, court or any agency of the  State
 8    government  receiving  appropriations  and  having  power  to
 9    certify  payrolls  to the Comptroller authorizing payments of
10    salary and wages against such appropriations as are  made  by
11    the  General  Assembly  from any State fund, or against trust
12    funds held by the State  Treasurer  and  includes  boards  of
13    trustees of the retirement systems created by Articles 2, 14,
14    15,  16  and  18  of the Illinois Pension Code.  "Department"
15    also includes the  Illinois  Comprehensive  Health  Insurance
16    Board and the Illinois Rural Bond Bank.
17        (h)  "Dependent", when the term is used in the context of
18    the  health  and  life  plan, means a member's spouse and any
19    unmarried child (1) from birth to age 19 including an adopted
20    child, a child who lives with the member from the time of the
21    filing of a petition for adoption until entry of an order  of
22    adoption,  a stepchild or recognized child who lives with the
23    member in a parent-child relationship, or a child  who  lives
24    with  the member if such member is a court appointed guardian
25    of the child, or (2) age 19 to 23  enrolled  as  a  full-time
26    student  in any accredited school, financially dependent upon
27    the member, and eligible as a dependent  for  Illinois  State
28    income tax purposes, or (3) age 19 or over who is mentally or
29    physically  handicapped  as defined in the Illinois Insurance
30    Code. For the health plan only,  the  term  "dependent"  also
31    includes  any  person enrolled prior to the effective date of
32    this Section who is dependent upon the member to  the  extent
33    that  the  member  may  claim  such person as a dependent for
34    Illinois State income tax deduction purposes; no  other  such
HB1269 Enrolled            -15-                LRB9001000EGfg
 1    person may be enrolled.
 2        (i)  "Director"   means  the  Director  of  the  Illinois
 3    Department of Central Management Services.
 4        (j)  "Eligibility period" means  the  period  of  time  a
 5    member  has  to  elect  enrollment  in  programs or to select
 6    benefits without regard to age, sex or health.
 7        (k)  "Employee"  means  and  includes  each  officer   or
 8    employee  in the service of a department who (1) receives his
 9    compensation for service rendered  to  the  department  on  a
10    warrant   issued   pursuant  to  a  payroll  certified  by  a
11    department or on a warrant or check issued  and  drawn  by  a
12    department  upon  a  trust,  federal  or  other  fund or on a
13    warrant issued pursuant to a payroll certified by an  elected
14    or  duly  appointed  officer  of  the  State  or who receives
15    payment of the performance of personal services on a  warrant
16    issued  pursuant  to  a payroll certified by a Department and
17    drawn by the Comptroller upon  the  State  Treasurer  against
18    appropriations  made by the General Assembly from any fund or
19    against trust funds held by the State Treasurer, and  (2)  is
20    employed  full-time  or  part-time  in  a  position  normally
21    requiring actual performance of duty during not less than 1/2
22    of  a  normal  work period, as established by the Director in
23    cooperation with each department, except that persons elected
24    by popular vote  will  be  considered  employees  during  the
25    entire  term  for  which they are elected regardless of hours
26    devoted to the service of the  State,  and  (3)  except  that
27    "employee" does not include any person who is not eligible by
28    reason  of  such person's employment to participate in one of
29    the State retirement systems under Articles 2, 14, 15 (either
30    the  regular  Article  15  system  or  an  optional   program
31    established under Section 15-158.2) or 18, or under paragraph
32    (b)  or  (c) of Section 16-106, of the Illinois Pension Code,
33    but such term does include persons who  are  employed  during
34    the  6  month  qualifying  period  under  Article  14  of the
HB1269 Enrolled            -16-                LRB9001000EGfg
 1    Illinois Pension Code.  Such term also  includes  any  person
 2    who  (1)  after  January  1,  1966,  is receiving ordinary or
 3    accidental disability  benefits  under  Articles  2,  14,  15
 4    (including  ordinary  or accidental disability benefits under
 5    an optional  program  established  under  Section  15-158.2),
 6    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
 7    Illinois  Pension Code, for disability incurred after January
 8    1, 1966, (2) receives  total  permanent  or  total  temporary
 9    disability   under   the   Workers'   Compensation   Act   or
10    Occupational Disease Act as a result of injuries sustained or
11    illness contracted in the course of employment with the State
12    of  Illinois,  or (3) is not otherwise covered under this Act
13    and has retired as a participating member under Article 2  of
14    the   Illinois   Pension  Code  but  is  ineligible  for  the
15    retirement  annuity  under  Section  2-119  of  the  Illinois
16    Pension Code.  However, a person who satisfies  the  criteria
17    of  the  foregoing  definition of "employee" except that such
18    person  is  made  ineligible  to  participate  in  the  State
19    Universities Retirement System by clause  (4)  of  the  first
20    paragraph  of  Section 15-107 of the Illinois Pension Code is
21    also an "employee" for the purposes of this Act.   "Employee"
22    also  includes  any person receiving or eligible for benefits
23    under a sick pay plan established in accordance with  Section
24    36  of  the  State Finance Act. "Employee" also includes each
25    officer or employee in  the  service  of  a  qualified  local
26    government,   including  persons  appointed  as  trustees  of
27    sanitary districts regardless of hours devoted to the service
28    of the sanitary district, and each employee in the service of
29    a  qualified  rehabilitation  facility  and  each   full-time
30    employee  in  the  service  of  a qualified domestic violence
31    shelter  or  service,  as  determined  according   to   rules
32    promulgated by the Director.
33        (l)  "Member"   means  an  employee,  annuitant,  retired
34    employee or survivor.
HB1269 Enrolled            -17-                LRB9001000EGfg
 1        (m)  "Optional  coverages  or   benefits"   means   those
 2    coverages  or  benefits available to the member on his or her
 3    voluntary election, and at his or her own expense.
 4        (n)  "Program" means the  group  life  insurance,  health
 5    benefits  and other employee benefits designed and contracted
 6    for by the Director under this Act.
 7        (o)  "Health plan" means a self-insured health  insurance
 8    program  offered by the State of Illinois for the purposes of
 9    benefiting employees by means  of  providing,  among  others,
10    wellness  programs,  utilization reviews, second opinions and
11    medical fee reviews, as well as for paying for  hospital  and
12    medical care up to the maximum coverage provided by the plan,
13    to its members and their dependents.
14        (p)  "Retired  employee" means any person who would be an
15    annuitant as that term is defined herein  but  for  the  fact
16    that such person retired prior to January 1, 1966.  Such term
17    also  includes any person formerly employed by the University
18    of Illinois in the Cooperative Extension Service who would be
19    an annuitant but for the  fact  that  such  person  was  made
20    ineligible   to   participate   in   the  State  Universities
21    Retirement System by clause (4) of  the  first  paragraph  of
22    Section 15-107 of the Illinois Pension Code.
23        (q)  "Survivor"  means a person receiving an annuity as a
24    survivor of an employee or of an annuitant.  "Survivor"  also
25    includes:  (1)  the  surviving  dependent  of  a  person  who
26    satisfies  the  definition  of  "employee"  except  that such
27    person  is  made  ineligible  to  participate  in  the  State
28    Universities Retirement System by clause  (4)  of  the  first
29    paragraph of Section 15-107 of the Illinois Pension Code; and
30    (2)  the  surviving dependent of any person formerly employed
31    by the University of Illinois in  the  Cooperative  Extension
32    Service  who  would  be an annuitant except for the fact that
33    such person was made ineligible to participate in  the  State
34    Universities  Retirement  System  by  clause (4) of the first
HB1269 Enrolled            -18-                LRB9001000EGfg
 1    paragraph of Section 15-107 of the Illinois Pension Code.
 2        (r)  "Medical  services"  means  the  services   provided
 3    within  the  scope  of their licenses by practitioners in all
 4    categories licensed under the Medical Practice Act of 1987.
 5        (s)  "Unit  of  local  government"  means   any   county,
 6    municipality,  township, school district, special district or
 7    other unit, designated as a unit of local government by  law,
 8    which  exercises  limited  governmental  powers  or powers in
 9    respect to limited governmental subjects, any  not-for-profit
10    association   with   a  membership  that  primarily  includes
11    townships  and  township  officials,  that  has  duties  that
12    include  provision  of  research  service,  dissemination  of
13    information, and other acts  for  the  purpose  of  improving
14    township  government,  and that is funded wholly or partly in
15    accordance with Section  85-15  of  the  Township  Code;  any
16    not-for-profit  corporation or association, with a membership
17    consisting primarily of municipalities, that operates its own
18    utility   system,   and    provides    research,    training,
19    dissemination  of  information,  or  other  acts  to  promote
20    cooperation  between  and  among  municipalities that provide
21    utility services and for the advancement  of  the  goals  and
22    purposes  of  its membership; and the Illinois Association of
23    Park Districts.  "Qualified local government" means a unit of
24    local government approved by the Director  and  participating
25    in  a  program  created under subsection (i) of Section 10 of
26    this Act.
27        (t)  "Qualified  rehabilitation   facility"   means   any
28    not-for-profit   organization   that  is  accredited  by  the
29    Commission on Accreditation of Rehabilitation  Facilities  or
30    certified  by  the Department of Human Services (as successor
31    to  the  Department  of  Mental  Health   and   Developmental
32    Disabilities)   to   provide   services   to   persons   with
33    disabilities  and  which  receives  funds  from  the State of
34    Illinois  for  providing  those  services,  approved  by  the
HB1269 Enrolled            -19-                LRB9001000EGfg
 1    Director  and  participating  in  a  program  created   under
 2    subsection (j) of Section 10 of this Act.
 3        (u)  "Qualified  domestic  violence  shelter  or service"
 4    means any Illinois domestic violence shelter or  service  and
 5    its  administrative offices funded by the Department of Human
 6    Services (as successor to the Illinois Department  of  Public
 7    Aid), approved by the Director and participating in a program
 8    created under subsection (k) of Section 10.
 9        (v)  "TRS benefit recipient" means a person who:
10             (1)  is  not  a "member" as defined in this Section;
11        and
12             (2)  is receiving a monthly  benefit  or  retirement
13        annuity  under  Article  16 of the Illinois Pension Code;
14        and
15             (3)  either (i) has at least 8 years  of  creditable
16        service under Article 16 of the Illinois Pension Code, or
17        (ii) was enrolled in the health insurance program offered
18        under  that  Article  on January 1, 1996, or (iii) is the
19        survivor of a benefit recipient who had at least 8  years
20        of  creditable  service  under Article 16 of the Illinois
21        Pension Code or was  enrolled  in  the  health  insurance
22        program  offered under that Article on the effective date
23        of this amendatory Act of 1995, or (iv) is a recipient or
24        survivor of a recipient of  a  disability  benefit  under
25        Article 16 of the Illinois Pension Code.
26        (w)  "TRS dependent beneficiary" means a person who:
27             (1)  is  not a "member" or "dependent" as defined in
28        this Section; and
29             (2)  is a TRS benefit recipient's: (A)  spouse,  (B)
30        dependent parent who is receiving at least half of his or
31        her  support  from  the  TRS  benefit  recipient,  or (C)
32        unmarried natural or adopted child who is (i)  under  age
33        19,  or  (ii)  enrolled  as  a  full-time  student  in an
34        accredited school, financially  dependent  upon  the  TRS
HB1269 Enrolled            -20-                LRB9001000EGfg
 1        benefit  recipient,  eligible as a dependent for Illinois
 2        State income tax purposes, and either is under age 24  or
 3        was,  on  January  1,  1996, participating as a dependent
 4        beneficiary in the health insurance program offered under
 5        Article 16 of the Illinois Pension Code, or (iii) age  19
 6        or  over  who  is  mentally  or physically handicapped as
 7        defined in the Illinois Insurance Code.
 8        (x)  "Military leave with pay  and  benefits"  refers  to
 9    individuals  in basic training for reserves, special/advanced
10    training, annual training, emergency call up,  or  activation
11    by  the  President of the United States with approved pay and
12    benefits.
13        (y)  "Military leave without pay and benefits" refers  to
14    individuals who enlist for active duty in a regular component
15    of  the  U.S.  Armed  Forces  or  other duty not specified or
16    authorized under military leave with pay and benefits.
17    (Source: P.A. 88-670,  eff.  12-2-94;  89-21,  eff.  6-21-95;
18    89-25,   eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,  eff.
19    8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96;  89-507,
20    eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
21        (5 ILCS 375/6.7)
22        Sec.  6.7.  Woman's health care provider.  The program of
23    health benefits is subject to the provisions of Section  356r
24    of the Illinois Insurance Code.
25    (Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)
26        (5 ILCS 375/6.8)
27        Sec.  6.8.  6.7.   Post-parturition care.  The program of
28    health  benefits  shall  provide  the  post-parturition  care
29    benefits required to be covered by a policy of  accident  and
30    health  insurance  under  Section  356s  356r of the Illinois
31    Insurance Code.
32    (Source: P.A. 89-513, eff. 7-17-96; revised 7-24-96.)
HB1269 Enrolled            -21-                LRB9001000EGfg
 1        Section 2-25.  The Alcoholism and Other  Drug  Abuse  and
 2    Dependency  Act  is  amended  by  changing  Section  1-10  as
 3    follows:
 4        (20 ILCS 301/1-10)
 5        Sec. 1-10.  Definitions.  As used in this Act, unless the
 6    context  clearly indicates otherwise, the following words and
 7    terms have the following meanings:
 8        "Act" means the  Alcoholism  and  Other  Drug  Abuse  and
 9    Dependency Act.
10        "Addict" means a person who exhibits the disease known as
11    "addiction".
12        "Addiction"  means a disease process characterized by the
13    continued use of a specific psycho-active  substance  despite
14    physical,  psychological  or  social  harm.   The  term  also
15    describes the advanced stages of chemical dependency.
16        "Administrator"    means   a   person   responsible   for
17    administration of a program.
18        "Alcoholic" means a person who exhibits the disease known
19    as "alcoholism".
20        "Alcoholism" means a chronic and progressive  disease  or
21    illness  characterized  by  preoccupation  with  and  loss of
22    control over the consumption  of  alcohol,  and  the  use  of
23    alcohol    despite    adverse    consequences.     Typically,
24    combinations  of  the  following tendencies are also present:
25    periodic  or  chronic  intoxication;   physical   disability;
26    impaired   emotional,   occupational  or  social  adjustment;
27    tendency  toward  relapse;  a  detrimental  effect   on   the
28    individual, his family and society; psychological dependence;
29    and  physical  dependence.    Alcoholism  is  also  known  as
30    addiction  to  alcohol.   Alcoholism is described and further
31    categorized in clinical detail in the DSM and the ICD.
32        "Array of  services"  means  assistance  to  individuals,
33    families and communities in response to alcohol or other drug
HB1269 Enrolled            -22-                LRB9001000EGfg
 1    abuse  or dependency.  The array of services includes, but is
 2    not limited to: prevention  assistance  for  communities  and
 3    schools;  case  finding,  assessment and intervention to help
 4    individuals  stop  abusing  alcohol  or  other  drugs;   case
 5    management;  detoxification  to aid individuals in physically
 6    withdrawing from  alcohol  or  other  drugs;  short-term  and
 7    long-term  treatment and support services to help individuals
 8    and  family  members   begin   the   process   of   recovery;
 9    prescription  and  dispensing  of the drug methadone or other
10    medications as an adjunct to  treatment;  relapse  prevention
11    services;  education  and  counseling  for  children or other
12    co-dependents of alcoholics or other drug abusers or addicts.
13        "Case management" means those services which will  assist
14    individuals  in gaining access to needed social, educational,
15    medical, treatment and other services.
16        "Children of alcoholics or drug  addicts  or  abusers  of
17    alcohol and other drugs" means the minor or adult children of
18    individuals who have abused or been dependent upon alcohol or
19    other  drugs.  These children may or may not become dependent
20    upon alcohol or other drugs  themselves;  however,  they  are
21    physically, psychologically, and behaviorally at high risk of
22    developing  the  illness.    Children of alcoholics and other
23    drug abusers experience emotional  and  other  problems,  and
24    benefit  from  prevention  and treatment services provided by
25    funded and non-funded agencies licensed by the Department.
26        "Co-dependents" means individuals who are involved in the
27    lives of and are affected by people who  are  dependent  upon
28    alcohol  and  other drugs.  Co-dependents compulsively engage
29    in behaviors that cause  them  to  suffer  adverse  physical,
30    emotional,  familial,  social,  behavioral,  vocational,  and
31    legal  consequences  as they attempt to cope with the alcohol
32    or drug dependent person.  People  who  become  co-dependents
33    include spouses, parents, siblings, and friends of alcohol or
34    drug dependent people.  Co-dependents benefit from prevention
HB1269 Enrolled            -23-                LRB9001000EGfg
 1    and  treatment  services provided by agencies licensed by the
 2    Department.
 3        "Controlled substance" means any substance  or  immediate
 4    precursor  which is enumerated in the schedules of Article II
 5    of the Illinois Controlled Substances  Act  or  the  Cannabis
 6    Control Act.
 7        "Crime  of  violence"  means any of the following crimes:
 8    murder,  voluntary  manslaughter,  criminal  sexual  assault,
 9    aggravated criminal sexual assault, predatory criminal sexual
10    assault  of  a  child,  armed  robbery,  arson,   kidnapping,
11    aggravated  battery,  aggravated  arson,  or any other felony
12    which involves  the  use  or  threat  of  physical  force  or
13    violence against another individual.
14        "Department"  means  the  Illinois  Department  of  Human
15    Services  as successor to the former Department of Alcoholism
16    and Substance Abuse.
17        "Designated program" means a program  designated  by  the
18    Department to provide services described in subsection (c) or
19    (d)  of  Section  15-10  of this Act.  A designated program's
20    primary  function  is  screening,  assessing,  referring  and
21    tracking clients identified by the criminal  justice  system,
22    and  the  program  agrees  to  apply statewide the standards,
23    uniform criteria and procedures established by the Department
24    pursuant to such designation.
25        "Detoxification"  means  the  process  of   allowing   an
26    individual  to  safely  withdraw  from a drug in a controlled
27    environment.
28        "DSM" means the most current edition  of  the  Diagnostic
29    and Statistical Manual of Mental Disorders.
30        "D.U.I."  means driving under the influence of alcohol or
31    other  substances  which  may  cause  impairment  of  driving
32    ability.
33        "Facility" means the building or premises which are  used
34    for  the  provision of licensable program services, including
HB1269 Enrolled            -24-                LRB9001000EGfg
 1    support services, as set forth by rule.
 2        "ICD" means the most current edition of the International
 3    Classification of Diseases.
 4        "Incapacitated" means that a  person  is  unconscious  or
 5    otherwise  exhibits, by overt behavior or by extreme physical
 6    debilitation, an inability to care for his own  needs  or  to
 7    recognize  the  obvious  danger  of  his situation or to make
 8    rational decisions with respect to his need for treatment.
 9        "Intermediary  person"  means  a  person  with  expertise
10    relative to addiction, alcoholism, and the abuse  of  alcohol
11    or  other  drugs who may be called on to assist the police in
12    carrying out enforcement or other activities with respect  to
13    persons who abuse or are dependent on alcohol or other drugs.
14        "Intervention"  means readily accessible activities which
15    assist individuals and their partners or  family  members  in
16    coping  with the immediate problems of alcohol and other drug
17    abuse or dependency, and in reducing their alcohol and  other
18    drug  use.  Intervention  can facilitate emotional and social
19    stability,  and  involves  referring   people   for   further
20    treatment as needed.
21        "Intoxicated  person"  means  a  person  whose  mental or
22    physical functioning is substantially impaired as a result of
23    the current effects of alcohol  or  other  drugs  within  the
24    body.
25        "Local  advisory  council" means an alcohol and substance
26    abuse body established in a  county,  township  or  community
27    area,  which represents public and private entities having an
28    interest in the prevention and  treatment  of  alcoholism  or
29    other drug abuse.
30        "Off-site  services" means licensable program services or
31    activities which are conducted at a  location  separate  from
32    the  primary  service  location  of  the  provider, and which
33    services are operated by a program or entity  licensed  under
34    this Act.
HB1269 Enrolled            -25-                LRB9001000EGfg
 1        "Person"  means any individual, firm, group, association,
 2    partnership, corporation, trust, government  or  governmental
 3    subdivision or agency.
 4        "Prevention" means an interactive process of individuals,
 5    families,  schools,  religious organizations, communities and
 6    regional,  state  and  national   organizations   to   reduce
 7    alcoholism, prevent the use of illegal drugs and the abuse of
 8    legal  drugs  by  persons  of  all  ages,  prevent the use of
 9    alcohol by minors, build the capacities  of  individuals  and
10    systems,  and  promote  healthy  environments, lifestyles and
11    behaviors.
12        "Program" means a  licensable  or  fundable  activity  or
13    service,  or  a  coordinated  range  of  such  activities  or
14    services, as the Department may establish by rule.
15        "Recovery"  means the long-term, often life-long, process
16    in which an addicted person changes the way in which he makes
17    decisions and establishes personal and life priorities.   The
18    evolution   of   this  decision-making  and  priority-setting
19    process is generally manifested by an obvious improvement  in
20    the individual's life and lifestyle and by his overcoming the
21    abuse  of  or dependence on alcohol or other drugs.  Recovery
22    is  also  generally  manifested  by  prolonged   periods   of
23    abstinence  from  addictive chemicals which are not medically
24    supervised.  Recovery is the goal of treatment.
25        "Rehabilitation" means a process whereby  those  clinical
26    services   necessary   and   appropriate   for  improving  an
27    individual's life and lifestyle and for overcoming his or her
28    abuse of or dependency upon alcohol or other drugs, or  both,
29    are delivered in an appropriate setting and manner as defined
30    in rules established by the Department.
31        "Relapse"  means  a  process  which  is  manifested  by a
32    progressive pattern of behavior that reactivates the symptoms
33    of  a  disease  or  creates  debilitating  conditions  in  an
34    individual who has experienced remission  from  addiction  or
HB1269 Enrolled            -26-                LRB9001000EGfg
 1    alcoholism.
 2        "Secretary"  means the Secretary of Human Services or his
 3    or her designee.
 4        "Substance abuse" or "abuse" means a pattern  of  use  of
 5    alcohol  or  other  drugs  with  the  potential of leading to
 6    immediate functional problems or to alcoholism or other  drug
 7    dependency,  or  to  the  use  of  alcohol and/or other drugs
 8    solely for purposes of intoxication.  The term also means the
 9    use of illegal drugs by persons of any age, and  the  use  of
10    alcohol by persons under the age of 21.
11        "Treatment"   means   the   broad   range  of  emergency,
12    outpatient, intermediate and residential  services  and  care
13    (including   assessment,   diagnosis,  medical,  psychiatric,
14    psychological and social services, care and  counseling,  and
15    aftercare)  which may be extended to individuals who abuse or
16    are dependent on alcohol or other drugs or families of  those
17    persons.
18    (Source:  P.A.  88-80;  89-202,  eff.  7-21-95;  89-428, eff.
19    12-13-95; 89-462, eff. 5-29-96; 89-507, eff. 7-1-97;  revised
20    9-10-96.)
21        Section  2-30.   The  Children and Family Services Act is
22    amended by changing Section 18a-13 as follows:
23        (20 ILCS 505/18a-13) (from Ch. 23, par. 5018a-13)
24        (Section scheduled to be repealed on December 31, 1997)
25        Sec.  18a-13.   Interagency  Authority   on   Residential
26    Facilities for Children.
27        (a)  There is hereby created the Interagency Authority on
28    Residential Facilities for Children.
29        (b)  The  Authority shall be composed of the Secretary of
30    Human Services (or his or  her  designee)  and  2  additional
31    representatives   of   the   Department   of  Human  Services
32    designated by the Secretary; plus  the  Directors,  or  their
HB1269 Enrolled            -27-                LRB9001000EGfg
 1    designees, of the following State agencies:
 2             (1)  Department of Children and Family Services,
 3             (2)  Department of Corrections,
 4             (3)  Illinois State Board of Education,
 5             (4)  Department of Public Aid, and
 6             (5)  Residential Services Authority;
 7    plus  5  people  appointed  by  the  Governor  from State and
 8    community public and private providers and funders.  These  5
 9    people  shall  be  experienced  and  knowledgeable concerning
10    out-of-home placement options for children.  No more  than  2
11    of  the appointees can be from the public sector.  Members of
12    the Authority shall serve without  compensation.   No  monies
13    shall  be appropriated for the purpose of providing operating
14    expenses for the Authority.  The Department of Human Services
15    and the other departments listed in this subsection (b) shall
16    provide staffing and support costs.
17        (c)  The  Chairperson  of  the  Authority  shall  be  the
18    Director of Children and Family  Services  or  his  designee.
19    The first meeting of the Authority shall be within 30 days of
20    the  effective  date  of this amendatory Act of 1991.  At the
21    first meeting the Authority shall  elect  a  vice-chairperson
22    from its membership.
23        (d)  The  Authority  shall  have  the  responsibility for
24    developing  a   long-term   plan   for   providing   adequate
25    residential facilities for the care of children who cannot be
26    served  in  their  own homes and whose needs cannot be met by
27    foster family home services or other similar substitute  care
28    arrangements.   The  Authority  shall  examine,  among  other
29    items,  the  feasibility of increasing the capacity or number
30    of residential care facilities in the State  consistent  with
31    the  principles  that  services in the home and community and
32    the least restrictive alternatives guide  the  State  service
33    system  for  children.  If it is determined that there should
34    be an increase  in  the  number  of  residential  facilities,
HB1269 Enrolled            -28-                LRB9001000EGfg
 1    campus type settings shall be considered.
 2        (e)  The  Authority  also  has the responsibility for the
 3    following:
 4             (1)  The annual collection of information from State
 5        agencies in regard to the number of  children  placed  in
 6        out-of-State settings, including placements made by local
 7        school  districts  that  are  reimbursed  pursuant to the
 8        School Code.
 9             (2)  Reporting on an annual basis the  cost  of  all
10        out-of-State   placements   of  children  made  by  State
11        agencies or local school districts.
12             (3)  Reviewing  the  current  rate  structures   for
13        payment   of   services  for  in-State  and  out-of-State
14        residential  placements  of  children  and   recommending
15        appropriate   incentives   that   would   encourage   the
16        development of necessary in-State services.
17             (4)  Promoting    the    establishment    of   State
18        inter-agency pilot programs which provide for a continuum
19        of placements,  including  short-term  local  residential
20        placements   and   other   alternatives  to  out-of-State
21        placements.
22        (f)  The  Authority  shall  present  a  proposal  to  the
23    Governor, the President of the Senate, the Minority Leader of
24    the Senate, the Speaker of the House and the Minority  Leader
25    of the House within one year of its first meeting.
26        (g)  This  Section  is  repealed  effective  December 31,
27    1997. The changes made to this Section by this amendatory Act
28    of 1996 are not intended to revive this Section in the  event
29    of its repeal.
30    (Source  P.A.  88-487;  88-597,  eff.  8-28-94;  89-21,  eff.
31    7-1-95;  89-507,  eff.  7-1-97;  89-648, eff. 8-9-96; revised
32    9-12-96)
33        Section 2-35.  The Department of Natural Resources Act is
HB1269 Enrolled            -29-                LRB9001000EGfg
 1    amended by setting forth and renumbering multiple versions of
 2    Section 5-10 as follows:
 3        (20 ILCS 801/5-10)
 4        Sec. 5-10. Additional powers.  With respect to the  water
 5    resources  of  the State, the Office of Water Resources shall
 6    have the following powers:
 7        (a)  To study and investigate ways and means by which the
 8    various water uses may be coordinated to  the  end  that  the
 9    water  resources  of  the  State  be  put  to  their  maximum
10    beneficial  use  and, in connection therewith, to request any
11    department or agency of the State to make  surveys,  studies,
12    investigations,  prepare plans, reports and furnish such data
13    and information as may be necessary.
14        (b)  To coordinate, determine and provide ways and  means
15    for  the  equitable  reconciliation  and  adjustment  of  the
16    various  conflicting  claims  and rights to water by users or
17    uses.
18        (c)  To  recommend  legislation  for  the  most  feasible
19    method or methods of conserving water resources  and  putting
20    them  to  the  maximum  possible use, taking into account the
21    problems of navigation, flood control, river flow control and
22    stabilization,  reclamation,  drainage  and  recapture,   and
23    further  utilization  of  water  after  use  for any purpose,
24    domestic and industrial use, irrigation  of  land,  municipal
25    use,   development   of   electric   energy,  public  health,
26    recreational, fish and game life, and other beneficial use.
27        (d)  To undertake regulatory flood hazard mapping  within
28    this State.
29        (e)  To   inspect  and  prescribe  standards  of  repair,
30    maintenance and improvement of the facilities and  properties
31    of the Metro-East Sanitary District.
32    (Source: P.A. 89-445, eff. 2-7-96.)
HB1269 Enrolled            -30-                LRB9001000EGfg
 1        (20 ILCS 801/15-10)
 2        Sec.   15-10.   5-10.  Board  of  Natural  Resources  and
 3    Conservation.
 4        (a)  Within the Department there  shall  be  a  Board  of
 5    Natural  Resources  and  Conservation, composed of 8 persons.
 6    The Board shall  be  composed  of  the  Director  of  Natural
 7    Resources   (or   the  Director's  designee),  who  shall  be
 8    chairman; the president of the University of Illinois, or his
 9    or her representative; the  president  of  Southern  Illinois
10    University,  or  his or her representative; and one appointed
11    expert  each  in  animal   biology,   geology,   engineering,
12    chemistry,  and plant biology, qualified by at least 10 years
13    of  experience  in  practicing  or  teaching  their   several
14    professions.    Appointed  members  of  the  Board  shall  be
15    appointed by the Governor, with the advice and consent of the
16    Senate.
17        The transfer of the Board to the  Department  under  this
18    Act  does  not  terminate  or  otherwise  affect  the term of
19    membership of any member of the Board, except for the  change
20    in chairman.
21        (b)  The  Board,  acting through 5 or more subcommittees,
22    each of which shall be composed of the  Director  of  Natural
23    Resources, the president of the University of Illinois or his
24    representative, the president of Southern Illinois University
25    or  his  representative,  and  the  expert  advisor specially
26    qualified in the field of investigation, shall:
27             (1)  consider  and  decide  matters  pertaining   to
28        natural   history,   geology,   water   and   atmospheric
29        resources,  forestry, and allied research, investigation,
30        and scientific work;
31             (2)  select and appoint, without  reference  to  the
32        State civil service law, members of the scientific staff,
33        prosecuting  such research, investigation, and scientific
34        work;
HB1269 Enrolled            -31-                LRB9001000EGfg
 1             (3)  cooperate with the University  of  Illinois  in
 2        the use of scientific staff and equipment; and
 3             (4)  cooperate with the various departments of State
 4        government  in  research,  investigation,  and scientific
 5        work useful  in  the  prosecution  of  the  work  of  any
 6        department.
 7    (Source: P.A. 89-445, eff. 2-7-96; revised 3-7-96.)
 8        Section  2-40.  The Civil Administrative Code of Illinois
 9    is amended by changing Section 71 as follows:
10        (20 ILCS 2005/71) (from Ch. 127, par. 63b17)
11        Sec. 71.  A.  The  Department  of  Nuclear  Safety  shall
12    exercise,  administer  and  enforce  all  rights,  powers and
13    duties vested in the  Department  of  Public  Health  by  the
14    following named Acts or Sections thereof:
15             1.  The Radiation Installation Act.
16             2.  The Radiation Protection Act of 1990.
17             3.  The Radioactive Waste Storage Act.
18             4.  The Personnel Radiation Monitoring Act.
19             5.  The Laser System Act.
20             6.  The Illinois Nuclear Safety Preparedness Act.
21        B.  All  the  rights,  powers  and  duties  vested in the
22    Director of Public Health by "An Act to create  the  Illinois
23    Commission  on  Atomic Energy, defining the powers and duties
24    of the Commission, and  making  an  appropriation  therefor",
25    effective  September 10, 1971, as amended, are transferred to
26    the Director of Nuclear  Safety.   The  Director  of  Nuclear
27    Safety, after the effective date this amendatory Act of 1980,
28    shall   serve  as  an  ex  officio  member  of  the  Illinois
29    Commission on Atomic Energy in the place  and  stead  of  the
30    Director of Public Health.
31        C.  The  Department  of  Nuclear  Safety  shall exercise,
32    administer and enforce all rights, powers and duties:
HB1269 Enrolled            -32-                LRB9001000EGfg
 1             1.  Vested in the Office of the State  Fire  Marshal
 2        by  the  Boiler  and  Pressure  Vessel Safety Act, to the
 3        extent the rights, powers, and duties relate  to  nuclear
 4        steam-generating facilities.
 5             2.  As    relating   to   nuclear   steam-generating
 6        facilities, vested in the Board of  Boiler  and  Pressure
 7        Vessel  Rules  by  the  Boiler and Pressure Vessel Safety
 8        Act,  which  includes  but  are  not   limited   to   the
 9        formulation of definitions, rules and regulations for the
10        safe  and proper construction, installation, repair, use,
11        and operation of nuclear steam-generating facilities, the
12        adoption  of  rules   for   already   installed   nuclear
13        steam-generating  facilities,  the  adoption of rules for
14        accidents in  nuclear  steam-generating  facilities,  the
15        examination  for or suspension of inspectors' licenses of
16        the facilities and the hearing of appeals from  decisions
17        relating to the facilities.
18             3.  As    relating   to   nuclear   steam-generating
19        facilities, vested in the State Fire Marshal or the Chief
20        Inspector by the Boiler and Pressure Vessel  Safety  Act,
21        which  include  but  are not limited to the employment of
22        inspectors  of   nuclear   steam-generating   facilities,
23        issuance  or suspension of their commissions, prosecution
24        of the Act or rules promulgated thereunder for violations
25        by nuclear steam-generating  facilities,  maintenance  of
26        inspection  records of all the facilities, publication of
27        rules relating to the facilities,  having free access  to
28        the  facilities,  issuance  of inspection certificates of
29        the facilities and the furnishing  of  bonds  conditioned
30        upon  the  faithful  performance  of  their  duties.  The
31        Director  of  Nuclear  Safety  may  designate   a   Chief
32        Inspector,  or other inspectors, as he deems necessary to
33        perform the functions transferred by this subsection C.
34        The transfer of rights, powers, and duties  specified  in
HB1269 Enrolled            -33-                LRB9001000EGfg
 1    the  immediately  preceding paragraphs 1, 2, and 3 is limited
 2    to the program transferred by this amendatory Act of 1980 and
 3    shall not be deemed to abolish or diminish  the  exercise  of
 4    those  same  rights,  powers, and duties by the Office of the
 5    State Fire Marshal, the Board of Boiler and  Pressure  Vessel
 6    Rules,  the  State  Fire Marshal, or the Chief Inspector with
 7    respect to programs retained by the Office of the State  Fire
 8    Marshal.
 9        D.  The  Department  of  Nuclear  Safety  shall exercise,
10    administer, and enforce all rights, powers and duties  vested
11    in the Environmental Protection Agency by paragraphs a, b, c,
12    d,  e, f, g, h, i, j, k, l, m, n, o, p, q, and r of Section 4
13    and Sections 30-45 inclusive of the Environmental  Protection
14    Act,  to  the extent that these powers relate to standards of
15    the Pollution Control Board adopted  under  subsection  K  of
16    this  Section.   The  transfer  of rights, powers, and duties
17    specified  in  this  paragraph  is  limited  to  the  program
18    transferred by this amendatory Act of 1980 and shall  not  be
19    deemed  to  abolish  or  diminish  the exercise of those same
20    rights, powers, and duties by  the  Environmental  Protection
21    Agency with respect to programs retained by the Environmental
22    Protection Agency.
23        E.  The  Department  of  Nuclear  Safety,  in lieu of the
24    Department  of  Public  Health,  shall   register,   license,
25    inspect,  and  control  radiation sources and shall purchase,
26    lease, accept, or acquire lands, buildings and grounds  where
27    radioactive  wastes  can  be  disposed,  and to supervise and
28    regulate the operation of the disposal sites.
29        F.  The Department of Nuclear Safety shall  have  primary
30    responsibility   to   formulate   a  comprehensive  emergency
31    preparedness and response plan for any nuclear accident,  and
32    shall  develop  such  a plan in cooperation with the Illinois
33    Emergency Management Agency. The Department of Nuclear Safety
34    shall also train and maintain an emergency response team.
HB1269 Enrolled            -34-                LRB9001000EGfg
 1        G.  The Department of Nuclear Safety  shall  formulate  a
 2    comprehensive  plan  regarding  the transportation of nuclear
 3    and radioactive materials in Illinois.  The Department  shall
 4    have   primary  responsibility  for  all  State  governmental
 5    regulation of the transportation of nuclear  and  radioactive
 6    materials,  insofar  as the regulation pertains to the public
 7    health and safety.  This responsibility shall include but not
 8    be  limited  to  the  authority  to  oversee  and  coordinate
 9    regulatory  functions  performed   by   the   Department   of
10    Transportation,  the  Department  of  State  Police,  and the
11    Illinois Commerce Commission.
12        H.  The Department of Nuclear Safety  shall  formulate  a
13    comprehensive   plan   regarding   disposal  of  nuclear  and
14    radioactive materials in this State.   The  Department  shall
15    establish   minimum   standards  for  disposal  sites,  shall
16    evaluate and publicize potential effects on the public health
17    and safety, and shall report  to  the  Governor  and  General
18    Assembly   all  violations  of  the  adopted  standards.   In
19    carrying out this function, the Department of Nuclear  Safety
20    shall  work  in  cooperation  with the Illinois Commission on
21    Atomic Energy and the Radiation Protection Advisory Council.
22        I.  The Department of Nuclear Safety, in cooperation with
23    the Department of Natural  Resources,  shall  study  (a)  the
24    impact  and  cost  of  nuclear power and compare these to the
25    impact and cost of alternative sources  of  energy,  (b)  the
26    potential  effects  on  the  public  health and safety of all
27    radioactive emissions from nuclear power plants, and (c)  all
28    other  factors  that  bear  on the use of nuclear power or on
29    nuclear safety.  The Department  shall  formulate  a  general
30    nuclear  policy  for  the  State based on the findings of the
31    study.  The policy shall include but not be  limited  to  the
32    feasibility of continued use of nuclear power, effects of the
33    use of nuclear power on the public health and safety, minimum
34    acceptable  standards  for the location of any future nuclear
HB1269 Enrolled            -35-                LRB9001000EGfg
 1    power plants, and rules and regulations for the reporting  by
 2    public  utilities of radioactive emissions from power plants.
 3    The  Department  shall  establish  a  reliable   system   for
 4    communication  between  the public and the Department and for
 5    dissemination  of  information  by   the   Department.    The
 6    Department  shall  publicize  the findings of all studies and
 7    make the publications reasonably available to the public.
 8        J.  The Department of Nuclear Safety shall  have  primary
 9    responsibility  for  the  coordination  and  oversight of all
10    State governmental functions  concerning  the  regulation  of
11    nuclear   power,   including   low  level  waste  management,
12    environmental  monitoring,  and  transportation  of   nuclear
13    waste.   Functions  performed  on  the effective date of this
14    amendatory Act of 1980 by the  Department  of  State  Police,
15    Department  of  Transportation,  and  the  Illinois Emergency
16    Management Agency in the area of nuclear safety may  continue
17    to  be performed by these agencies but under the direction of
18    the Department of  Nuclear  Safety.  All  other  governmental
19    functions  regulating  nuclear safety shall be coordinated by
20    Department of Nuclear Safety.
21        K.  The Department of Nuclear Safety  shall  enforce  the
22    regulations  promulgated by the Pollution Control Board under
23    Section 25b of the Environmental Protection Act.  Under these
24    regulations the  Department  shall  require  that  a  person,
25    corporation,  or  public  authority intending to  construct a
26    nuclear  steam-generating  facility   or   a   nuclear   fuel
27    reprocessing  plant file with the Department an environmental
28    feasibility report that incorporates the data provided in the
29    preliminary safety analysis required to  be  filed  with  the
30    United States Nuclear Regulatory Commission.
31        L.  Personnel   previously   assigned   to  the  programs
32    transferred from the Department  of  Public  Health  and  the
33    Office  of  the  State Fire Marshal are hereby transferred to
34    the  Department  of  Nuclear  Safety.   The  rights  of   the
HB1269 Enrolled            -36-                LRB9001000EGfg
 1    employees,  the  State,  and  executive  agencies  under  the
 2    Personnel  Code  or  any  collective bargaining agreement, or
 3    under any pension, retirement, or annuity plan shall  not  be
 4    affected by this amendatory Act of 1980.
 5        M.  All books, records, papers, documents, property (real
 6    or  personal), unexpended appropriations and pending business
 7    in any way pertaining  to  the  rights,  powers,  and  duties
 8    transferred by this amendatory Act of 1980 shall be delivered
 9    and transferred to the Department of Nuclear Safety.
10        N.  All files, records, and data gathered by or under the
11    direction  or  authority of the Director under this Act shall
12    be made available to the Department of  Public  Health  under
13    the Illinois Health and Hazardous Substances Registry Act.
14        O.  The  Department  shall  not  issue  or  renew  to any
15    individual any accreditation, certification, or  registration
16    (but  excluding registration under the Radiation Installation
17    Act) otherwise issued by the Department if the individual has
18    defaulted on an educational loan guaranteed by  the  Illinois
19    Student  Assistance  Commission;  however, the Department may
20    issue  or   renew   an   accreditation,   certification,   or
21    registration if the individual has established a satisfactory
22    repayment  record  as  determined  by  the  Illinois  Student
23    Assistance   Commission.   Additionally,  any  accreditation,
24    certification, or registration issued by the Department  (but
25    excluding  registration under the Radiation Installation Act)
26    may be suspended or revoked  if  the  Department,  after  the
27    opportunity    for    a   hearing   under   the   appropriate
28    accreditation, certification, or registration Act, finds that
29    the holder has failed to make satisfactory repayment  to  the
30    Illinois  Student  Assistance  Commission for a delinquent or
31    defaulted loan.  For purposes of this Section,  "satisfactory
32    repayment record" shall be defined by rule.
33    (Source:  P.A.  89-411,  eff.  6-1-96;  89-445,  eff. 2-7-96;
34    revised 3-11-96.)
HB1269 Enrolled            -37-                LRB9001000EGfg
 1        Section 2-45.  The Civil Administrative Code of  Illinois
 2    is amended by setting forth and renumbering multiple versions
 3    of Section 60.2 as follows:
 4        (20 ILCS 2105/60.2) (from Ch. 127, par. 60.2)
 5        Sec.    60.2.  Annual    report.    The   Department   of
 6    Professional Regulation  shall  prepare  and  file  with  the
 7    General  Assembly  during  the second week of January in each
 8    calendar year a written report setting forth with respect  to
 9    each  professional,  trade,  or  occupational  school that is
10    regulated by the Department and  that  may  not  lawfully  be
11    operated  without a certificate of registration issued by the
12    Department:
13        (1)  The number of written  or  verified  complaints,  by
14    license  category,  made  or filed with the Department during
15    the  immediately  preceding  calendar   year   alleging   the
16    violation   of   any   licensing   Act  administered  by  the
17    Department.
18        (2)  The name  and  address  of  each  such  school  with
19    respect to which or with respect to a representative of which
20    the  Department,  during  the  immediately preceding calendar
21    year, refused to issue or renew a certificate of registration
22    required for lawful operation of the school and  the  reasons
23    for that refusal.
24        (3)  The  name  and  address  of  each  such  school with
25    respect to which or with respect to a representative of which
26    the    certificate  of  registration  required   for   lawful
27    operation  of  the  school  was suspended, revoked, placed on
28    probation, reprimanded, or otherwise disciplined  during  the
29    immediately  preceding calendar year and the reasons for that
30    discipline.
31        (4)  The name and location of each such school  at  which
32    the Department made any on site inspection at any time during
33    the immediately preceding calendar year and the date or dates
HB1269 Enrolled            -38-                LRB9001000EGfg
 1    on which each such on site visit was made at that school.
 2    (Source: P.A. 87-1008.)
 3        (20 ILCS 2105/60.3)
 4        Sec.  60.3.  60.2.  Publication  of disciplinary actions.
 5    The  Department  shall  publish,  at  least  monthly,   final
 6    disciplinary  actions  taken  by  the  Department  against  a
 7    licensee or applicant pursuant to the Medical Practice Act of
 8    1987.   The  specific disciplinary action and the name of the
 9    applicant or licensee  shall  be  listed.   This  publication
10    shall  be  made  available  to  the  public  upon request and
11    payment of the fees set by the Department.  This  publication
12    may  be  made available to the public on the Internet through
13    the State of Illinois World Wide Web site.
14    (Source: P.A. 89-702, eff. 7-1-97; revised 1-29-97.)
15        Section 2-50.  The Illinois Development Finance Authority
16    Act is amended by renumbering Sections 7-84, 7-85,  and  7-86
17    as follows:
18        (20 ILCS 3505/7.84) (from Ch. 48, par. 850.07z24)
19        Sec.  7.84. 7-84. Additional security.  In the event that
20    the Authority determines that funds pledged,  intercepted  or
21    otherwise  received  or to be received by the Authority under
22    Section 7.83 of this Act  will  not  be  sufficient  for  the
23    payment  of  the  principal,  premium,  if  any, and interest
24    during the next State fiscal year on any bonds issued by  the
25    Authority  under Sections 7.80 through 7.87, the Chairman, as
26    soon as is practicable, shall certify  to  the  Governor  the
27    amount  required  by  the  Authority  to enable it to pay the
28    principal, premium, if any, and interest falling due on  such
29    bonds.   The Governor shall submit the amount so certified to
30    the General Assembly as soon as  practicable,  but  no  later
31    than  the  end  of  the  current  State  fiscal  year.   This
HB1269 Enrolled            -39-                LRB9001000EGfg
 1    paragraph  shall  not  apply  to  any  bonds  as to which the
 2    Authority  shall   have   determined,   in   the   resolution
 3    authorizing  their  issuance,  that  this paragraph shall not
 4    apply. Whenever the Authority  makes  such  a  determination,
 5    that  fact  shall be plainly stated on the face of such bonds
 6    and that fact shall also be reported to the Governor.
 7        In the event of  a  withdrawal  of  moneys  from  a  debt
 8    service reserve fund established with respect to any issue or
 9    issues  of  bonds  of  the  Authority  to  pay  principal and
10    interest  on  those  bonds,  the  Chairman,  as  soon  as  is
11    practicable,  shall  certify  to  the  Governor  the   amount
12    required  to  restore such reserve fund to the level required
13    in the resolution  or  indenture  securing  the  bonds.   The
14    Governor  shall submit the amount so certified to the General
15    Assembly as soon as practicable, but not later than  the  end
16    of the current State fiscal year.
17    (Source: P.A. 86-1211; 87-778; revised 2-7-97.)
18        (20 ILCS 3505/7.85) (from Ch. 48, par. 850.07z25)
19        Sec.  7.85.  7-85. Eligible Investments.  Bonds issued by
20    the Authority pursuant to Sections 7.80 through 7.87 shall be
21    permissible investments within the provisions of Section 12.
22    (Source: P.A. 86-1211; revised 2-7-97.)
23        (20 ILCS 3505/7.86) (from Ch. 48, par. 850.07z26)
24        Sec. 7.86. 7-86. Tax  exemption.   The  exercise  of  the
25    powers  granted  in  Sections  7.80  through  7.87 are in all
26    respects for the benefit of the people of  Illinois,  and  in
27    consideration  thereof  the  bonds  issued  pursuant  to  the
28    aforementioned  Sections  and  the  income therefrom shall be
29    free  from  all  taxation  by  the  State  or  its  political
30    subdivisions, except for  estate,  transfer  and  inheritance
31    taxes.   For  purposes  of Section 250 of the Illinois Income
32    Tax Act, the exemption of the income from bonds issued  under
HB1269 Enrolled            -40-                LRB9001000EGfg
 1    the  aforementioned Sections shall terminate after all of the
 2    bonds have been paid.  The amount of such income  that  shall
 3    be  added  and  then  subtracted  on  the Illinois income tax
 4    return of a taxpayer, pursuant to Section 203 of the Illinois
 5    Income Tax Act, from federal adjusted gross income or federal
 6    taxable income in computing Illinois base income shall be the
 7    interest net of any bond premium amortization.
 8    (Source: P.A. 89-460, eff. 5-24-96; revised 11-1-96.)
 9        Section 2-55.  The Illinois  Health  Facilities  Planning
10    Act is amended by changing Sections 3 and 4 and setting forth
11    and renumbering multiple versions of Section 12.1 as follows:
12        (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
13        Sec. 3.  As used in this Act:
14        "Health care facilities" means and includes the following
15    facilities and organizations:
16             1.  An ambulatory surgical treatment center required
17        to  be  licensed  pursuant  to  the  Ambulatory  Surgical
18        Treatment Center Act;
19             2.  An   institution,  place,  building,  or  agency
20        required  to  be  licensed  pursuant  to   the   Hospital
21        Licensing Act;
22             3.  Any institution required to be licensed pursuant
23        to the Nursing Home Care Act;
24             4.  Hospitals,  nursing  homes,  ambulatory surgical
25        treatment centers, or kidney  disease  treatment  centers
26        maintained  by  the  State  or  any  department or agency
27        thereof; and
28             5.  Kidney disease treatment  centers,  including  a
29        free-standing hemodialysis unit.
30        No  federally  owned  facility  shall  be  subject to the
31    provisions of  this  Act,  nor  facilities  used  solely  for
32    healing by prayer or spiritual means.
HB1269 Enrolled            -41-                LRB9001000EGfg
 1        No  facility  licensed  under  the  Supportive Residences
 2    Licensing Act shall be subject to the provisions of this Act.
 3        A facility designated as  a  supportive  living  facility
 4    that  is  in  good  standing  with  the demonstration project
 5    established under Section 5-5.01a of the Illinois Public  Aid
 6    Code shall not be subject to the provisions of this Act.
 7        This  Act  does  not  apply to facilities granted waivers
 8    under Section 3-102.2 of the Nursing Home Care Act.  However,
 9    if a demonstration project  under  that  Act  applies  for  a
10    certificate  of  need  to  convert  to a nursing facility, it
11    shall meet the licensure and certificate of need requirements
12    in effect as of the date of application.
13        With  the  exception  of  those  health  care  facilities
14    specifically included in this Section, nothing  in  this  Act
15    shall be intended to include facilities operated as a part of
16    the  practice  of  a  physician or other licensed health care
17    professional, whether practicing in his  individual  capacity
18    or  within the legal structure of any partnership, medical or
19    professional  corporation,  or  unincorporated   medical   or
20    professional  group.  Further,  this  Act  shall not apply to
21    physicians  or  other  licensed  health  care  professional's
22    practices where such practices are carried out in  a  portion
23    of  a  health  care  facility under contract with such health
24    care facility by a physician or by other licensed health care
25    professionals, whether practicing in his individual  capacity
26    or  within the legal structure of any partnership, medical or
27    professional  corporation,  or  unincorporated   medical   or
28    professional groups.  This Act shall apply to construction or
29    modification   and  to  establishment  by  such  health  care
30    facility of such  contracted  portion  which  is  subject  to
31    facility  licensing  requirements,  irrespective of the party
32    responsible  for   such   action   or   attendant   financial
33    obligation.
34        "Person"  means  any  one  or more natural persons, legal
HB1269 Enrolled            -42-                LRB9001000EGfg
 1    entities, governmental bodies  other  than  federal,  or  any
 2    combination thereof.
 3        "Consumer" means any person other than a person (a) whose
 4    major   occupation   currently  involves  or  whose  official
 5    capacity  within  the  last  12  months  has   involved   the
 6    providing,  administering  or financing of any type of health
 7    care facility, (b) who is engaged in health research  or  the
 8    teaching of health, (c) who has a material financial interest
 9    in  any  activity which involves the providing, administering
10    or financing of any type of health care facility, or (d)  who
11    is  or  ever has been a member of the immediate family of the
12    person defined by (a), (b), or (c).
13        "State Board" means the Health Facilities Planning Board.
14        "Construction or modification" means  the  establishment,
15    erection,      building,      alteration,     reconstruction,
16    modernization,   improvement,   extension,   discontinuation,
17    change of ownership, of or by a health care facility, or  the
18    purchase  or acquisition by or through a health care facility
19    of  equipment  or  service  for  diagnostic  or   therapeutic
20    purposes  or for facility administration or operation, or any
21    capital expenditure made by or on behalf  of  a  health  care
22    facility which exceeds the capital expenditure minimum.
23        "Establish"  means  the  construction  of  a  health care
24    facility or  the  replacement  of  an  existing  facility  on
25    another site.
26        "Major  medical  equipment" means medical equipment which
27    is used  for  the  provision  of  medical  and  other  health
28    services and which costs in excess of the capital expenditure
29    minimum,  except  that  such  term  does  not include medical
30    equipment acquired by or on behalf of a  clinical  laboratory
31    to  provide  clinical  laboratory  services  if  the clinical
32    laboratory is independent  of  a  physician's  office  and  a
33    hospital  and it has been determined under Title XVIII of the
34    Social Security Act to meet the  requirements  of  paragraphs
HB1269 Enrolled            -43-                LRB9001000EGfg
 1    (10) and (11) of Section 1861(s) of such Act.  In determining
 2    whether  medical  equipment  has  a  value  in  excess of the
 3    capital expenditure minimum, the value of  studies,  surveys,
 4    designs,  plans,  working drawings, specifications, and other
 5    activities essential to the  acquisition  of  such  equipment
 6    shall be included.
 7        "Capital  Expenditure" means an expenditure:  (A) made by
 8    or on behalf of a health care facility (as such a facility is
 9    defined in this Act); and (B) which under generally  accepted
10    accounting  principles  is  not  properly  chargeable  as  an
11    expense of operation and maintenance, or is made to obtain by
12    lease  or comparable arrangement any facility or part thereof
13    or any equipment for a facility or part;  and  which  exceeds
14    the capital expenditure minimum.
15        For  the  purpose  of  this  paragraph,  the  cost of any
16    studies,   surveys,   designs,   plans,   working   drawings,
17    specifications,  and  other  activities  essential   to   the
18    acquisition,  improvement,  expansion,  or replacement of any
19    plant or equipment with respect to which  an  expenditure  is
20    made  shall  be  included  in determining if such expenditure
21    exceeds  the  capital  expenditures  minimum.  Donations   of
22    equipment  or  facilities  to a health care facility which if
23    acquired directly by such facility would be subject to review
24    under this Act shall be considered capital expenditures,  and
25    a  transfer  of  equipment  or  facilities for less than fair
26    market value shall be considered a  capital  expenditure  for
27    purposes  of  this  Act  if  a  transfer  of the equipment or
28    facilities at fair market value would be subject to review.
29        "Capital expenditure minimum" means $1,000,000 for  major
30    medical  equipment  and  $2,000,000  for  all  other  capital
31    expenditures,  both  of  which  shall be annually adjusted to
32    reflect the increase in construction costs due to inflation.
33        "Areawide" means a major area of the State delineated  on
34    a  geographic,  demographic,  and functional basis for health
HB1269 Enrolled            -44-                LRB9001000EGfg
 1    planning and for health service and having within it  one  or
 2    more local areas for health planning and health service.  The
 3    term  "region",  as contrasted with the term "subregion", and
 4    the word "area"  may  be  used  synonymously  with  the  term
 5    "areawide".
 6        "Local"  means  a subarea of a delineated major area that
 7    on a geographic, demographic, and  functional  basis  may  be
 8    considered   to  be  part  of  such  major  area.   The  term
 9    "subregion" may be used synonymously with the term "local".
10        "Areawide health planning organization" or "Comprehensive
11    health planning organization" means the health systems agency
12    designated by the Secretary, Department of Health  and  Human
13    Services or any successor agency.
14        "Local  health  planning  organization" means those local
15    health planning organizations that are designated as such  by
16    the  areawide health planning organization of the appropriate
17    area.
18        "Physician"  means  a  person  licensed  to  practice  in
19    accordance with the Medical Practice Act of 1987, as amended.
20        "Licensed  health  care  professional"  means  a   person
21    licensed  to  practice  a  health  profession under pertinent
22    licensing statutes of the State of Illinois.
23        "Director" means the  Director of the Illinois Department
24    of Public Health.
25        "Agency" means the Illinois Department of Public Health.
26        "Comprehensive health  planning"  means  health  planning
27    concerned  with  the  total  population  and  all  health and
28    associated problems that affect the well-being of people  and
29    that encompasses health services, health manpower, and health
30    facilities;  and  the coordination among these and with those
31    social,  economic,  and  environmental  factors  that  affect
32    health.
33        "Alternative health  care  model"  means  a  facility  or
34    program authorized under the Alternative Health Care Delivery
HB1269 Enrolled            -45-                LRB9001000EGfg
 1    Act.
 2    (Source: P.A.  88-18;  89-499,  eff.  6-28-96;  89-530,  eff.
 3    7-19-96; revised 8-15-96.)
 4        (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
 5        Sec.  4.  There is created the Health Facilities Planning
 6    Board, which shall  perform  such  functions  as  hereinafter
 7    described in this Act.
 8        The  State  Board  shall  consist  of  15 voting members,
 9    including: 8 consumer members; one  member  representing  the
10    commercial  health insurance industry in Illinois; one member
11    representing proprietary hospitals in  Illinois;  one  member
12    who  is actively engaged in the field of hospital management;
13    one  member  who  is  a  professional  nurse  registered   in
14    Illinois;  one  member  who  is a physician in active private
15    practice licensed in Illinois to practice medicine in all  of
16    its branches; one member who is actively engaged in the field
17    of  skilled nursing or intermediate care facility management;
18    and one member who is actively engaged in the  administration
19    of an ambulatory surgical treatment center licensed under the
20    Ambulatory Surgical Treatment Center Act.
21        The  State Board shall be appointed by the Governor, with
22    the  advice  and  consent  of  the  Senate.  In  making   the
23    appointments,   the  Governor  shall  give  consideration  to
24    recommendations made by (1)  the  professional  organizations
25    concerned   with   hospital   management   for  the  hospital
26    management  appointment,   (2)   professional   organizations
27    concerned  with  long  term  care facility management for the
28    long  term  care   facility   management   appointment,   (3)
29    professional   medical   organizations   for   the  physician
30    appointment, (4) professional nursing organizations  for  the
31    nurse   appointment,   and   (5)  professional  organizations
32    concerned with ambulatory surgical treatment centers for  the
33    ambulatory  surgical  treatment center appointment, and shall
HB1269 Enrolled            -46-                LRB9001000EGfg
 1    appoint  as  consumer  members  individuals   familiar   with
 2    community  health  needs but whose interest in the operation,
 3    construction or utilization of  health  care  facilities  are
 4    derived   from  factors  other  than  those  related  to  his
 5    profession, business, or economic gain, and who represent, so
 6    far as possible, different geographic areas of the State. Not
 7    more than  8  of  the  appointments  shall  be  of  the  same
 8    political party.
 9        The  Secretary  of Human Services, the Director of Public
10    Aid, and the Director of Public Health, or  their  designated
11    representatives,   shall   serve  as  ex-officio,  non-voting
12    members of the State Board.
13        Of those appointed by the  Governor  as  voting  members,
14    each  member  shall  hold  office  for  a  term  of  3 years:
15    provided,  that  any  member  appointed  to  fill  a  vacancy
16    occurring prior to the expiration of the term for  which  his
17    predecessor   was   appointed  shall  be  appointed  for  the
18    remainder of such  term  and  the  term  of  office  of  each
19    successor  shall  commence on July 1 of the year in which his
20    predecessor's term expires. In making  original  appointments
21    to  the State Board, the Governor shall appoint 5 members for
22    a term of one year, 5 for a term of 2 years, and 3 for a term
23    of 3 years, and each of these terms of office shall  commence
24    on  July  1, 1974. The initial term of office for the members
25    appointed under this amendatory Act of 1996  shall  begin  on
26    July  1, 1996 and shall last for 2 years, and each subsequent
27    appointment shall be for a term  of  3  years.   Each  member
28    shall  hold  office  until  his  successor  is  appointed and
29    qualified.
30        State Board members, while serving  on  business  of  the
31    State  Board,  shall  receive actual and necessary travel and
32    subsistence expenses while so serving away from their  places
33    of  residence.  In addition, while serving on business of the
34    State Board, each member shall receive compensation  of  $150
HB1269 Enrolled            -47-                LRB9001000EGfg
 1    per  day,  except  that  such  compensation  shall not exceed
 2    $7,500 in any one year for any member.
 3        The State Board shall provide for  its  own  organization
 4    and  procedures,  including  the  selection of a Chairman and
 5    such other officers as deemed necessary. The  Director,  with
 6    concurrence  of  the  State  Board,  shall  name as full-time
 7    Executive Secretary of the State Board, a person qualified in
 8    health care facility planning  and  in  administration.   The
 9    Agency shall provide administrative and staff support for the
10    State  Board.   The  State Board shall advise the Director of
11    its budgetary and staff needs and consult with  the  Director
12    on annual budget preparation.
13        The State Board shall meet at least once each quarter, or
14    as  often as the Chairman of the State Board deems necessary,
15    or upon the request of a majority of the members.
16        Eight members of  the  State  Board  shall  constitute  a
17    quorum.    The  affirmative  vote  of 8 of the members of the
18    State Board shall be necessary for  any  action  requiring  a
19    vote  to  be  taken  by  the  State  Board.  A vacancy in the
20    membership of the State Board shall not impair the right of a
21    quorum to exercise all the rights and perform all the  duties
22    of the State Board as provided by this Act.
23    (Source:  P.A.  88-490;  89-507,  eff.  7-1-97;  89-674, eff.
24    8-14-96; revised 9-12-96.)
25        (20 ILCS 3960/12.1) (from Ch. 111 1/2, par. 1162.1)
26        Sec. 12.1.  The State Board shall, by rule, define  terms
27    and  set  those  conditions necessary to implement the Health
28    Care  Worker  Self-Referral  Act.    The   rules   shall   be
29    promulgated  and  adopted exclusively and solely by the State
30    Board.
31    (Source: P.A. 87-1207.)
32        (20 ILCS 3960/12.2)
HB1269 Enrolled            -48-                LRB9001000EGfg
 1        Sec. 12.2. 12.1.  Powers of the Agency.  For purposes  of
 2    this  Act, the Agency shall exercise the following powers and
 3    duties:
 4        (1)  Review applications for permits  and  exemptions  in
 5    accordance  with  the  standards, criteria, and plans of need
 6    established by the State Board under this Act and certify its
 7    finding to the State Board.
 8        (2)  Charge and collect an amount determined by the State
 9    Board  to  be  reasonable  fees   for   the   processing   of
10    applications   by  the  State  Board,  the  Agency,  and  the
11    appropriate recognized areawide health planning organization.
12    The State Board shall set the amounts by rule.  All fees  and
13    fines  collected  under  the  provisions of this Act shall be
14    deposited into the Illinois Health Facilities  Planning  Fund
15    to be used for the expenses of administering this Act.
16        (3)  Coordinate   with   other   State   agencies  having
17    responsibilities affecting health care facilities,  including
18    those of licensure and cost reporting.
19    (Source: P.A. 89-276, eff. 8-10-95; revised 1-7-97.)
20        Section  2-65.   The  State  Finance  Act  is  amended by
21    setting forth and renumbering multiple versions  of  Sections
22    5.402, 5.432, and 5.433 and changing Section 25 as follows:
23        (30 ILCS 105/5.402)
24        Sec. 5.402.  The Eastern Illinois University Income Fund.
25    (Source: P.A. 89-4, eff. 1-1-96; 89-626, eff. 8-9-96.)
26        (30 ILCS 105/5.432)
27        Sec. 5.432.  The State D.A.R.E. Fund.
28    (Source: P.A. 89-621, eff. 1-1-97.)
29        (30 ILCS 105/5.433)
30        Sec. 5.433.  The County D.A.R.E. Fund.
HB1269 Enrolled            -49-                LRB9001000EGfg
 1    (Source: P.A. 89-621, eff. 1-1-97.)
 2        (30 ILCS 105/5.435)
 3        Sec.  5.435. 5.402.  The Illinois Fire Fighters' Memorial
 4    Fund.
 5    (Source: P.A. 89-612, eff. 8-9-96; revised 10-24-96.)
 6        (30 ILCS 105/5.436)
 7        Sec. 5.436. 5.432.  The Livestock  Management  Facilities
 8    Fund.
 9    (Source: P.A. 89-456, eff. 5-21-96; revised 10-24-96.)
10        (30 ILCS 105/5.437)
11        Sec.  5.437.  5.432.   The  Alternative Compliance Market
12    Account Fund.
13    (Source: P.A. 89-465, eff. 6-13-96; revised 10-24-96.)
14        (30 ILCS 105/5.438)
15        Sec. 5.438. 5.432.  The  Gang  Crime  Witness  Protection
16    Fund.
17    (Source: P.A. 89-498, eff. 6-27-96; revised 10-24-96.)
18        (30 ILCS 105/5.439)
19        Sec.  5.439. 5.432.  The Health Care Facility and Program
20    Survey Fund.
21    (Source: P.A. 89-499, eff. 8-26-96; revised 10-24-96.)
22        (30 ILCS 105/5.440)
23        Sec.  5.440.  5.432.  The  Secretary  of  State   Special
24    Services Fund.
25    (Source: P.A. 89-503, eff. 7-1-96; revised 10-24-96.)
26        (30 ILCS 105/5.441)
27        Sec.  5.441. 5.432.  The Medical Research and Development
HB1269 Enrolled            -50-                LRB9001000EGfg
 1    Fund.
 2    (Source: P.A. 89-506, eff. 7-3-96; revised 10-24-96.)
 3        (30 ILCS 105/5.442)
 4        Sec. 5.442. 5.433.  The Post-Tertiary  Clinical  Services
 5    Fund.
 6    (Source: P.A. 89-506, eff. 7-3-96; revised 10-24-96.)
 7        (30 ILCS 105/5.443)
 8        Sec.   5.443.  5.432.  The  Comptroller's  Administrative
 9    Fund.
10    (Source: P.A.  89-511,  eff.  1-1-97;  89-615,  eff.  8-9-96;
11    revised 10-24-96.)
12        (30 ILCS 105/5.444)
13        Sec.  5.444.  5.432.  The  Illinois  Student   Assistance
14    Commission Higher EdNet Fund.
15    (Source: P.A. 89-512, eff. 7-11-96; revised 10-24-96.)
16        (30 ILCS 105/5.445)
17        Sec. 5.445. 5.432.  The Wildlife Prairie Park Fund.
18    (Source: P.A. 89-611, eff. 1-1-97; revised 10-24-96.)
19        (30 ILCS 105/5.446)
20        Sec. 5.446. 5.432.  The Master Mason Fund.
21    (Source: P.A. 89-620, eff. 1-1-97; revised 10-24-96.)
22        (30 ILCS 105/5.447)
23        Sec. 5.447. 5.433.  The Knights of Columbus Fund.
24    (Source: P.A. 89-620, eff. 1-1-97; revised 10-24-96.)
25        (30 ILCS 105/5.448)
26        Sec.  5.448.  5.432.  The  Court of Claims Administration
27    and Grant Fund.
HB1269 Enrolled            -51-                LRB9001000EGfg
 1    (Source: P.A. 89-670, eff. 8-14-96; revised 10-24-96.)
 2        (30 ILCS 105/25) (from Ch. 127, par. 161)
 3        Sec. 25.  Fiscal year limitations.
 4        (a)  All   appropriations   shall   be   available    for
 5    expenditure for the fiscal year or for a lesser period if the
 6    Act  making that appropriation so specifies.  A deficiency or
 7    emergency appropriation shall be  available  for  expenditure
 8    only  through  June  30  of the year when the Act making that
 9    appropriation is enacted unless that Act otherwise provides.
10        (b)  Outstanding liabilities as of June 30, payable  from
11    appropriations  which have otherwise expired, may be paid out
12    of the expiring  appropriations  during  the  2-month  period
13    ending  at  the  close of business on August 31.  Any service
14    involving professional or artistic  skills  or  any  personal
15    services  by  an  employee  whose  compensation is subject to
16    income tax withholding must be performed as of June 30 of the
17    fiscal  year  in  order  to  be  considered  an  "outstanding
18    liability as of June 30" that is thereby eligible for payment
19    out of the expiring appropriation.
20        However, payment of tuition  reimbursement  claims  under
21    Section 14-7.03 or 18-3 of the School Code may be made by the
22    State  Board  of  Education from its appropriations for those
23    respective purposes for any  fiscal  year,  even  though  the
24    claims  reimbursed  by the payment may be claims attributable
25    to a prior fiscal year, and  payments  may  be  made  at  the
26    direction  of  the State Superintendent of Education from the
27    fund from which the appropriation is made without  regard  to
28    any fiscal year limitations.
29        Medical  payments may be made by the Department of Public
30    Aid and child care payments may be made by the Department  of
31    Human Services (as successor to the Department of Public Aid)
32    from  appropriations  for those purposes for any fiscal year,
33    without regard to the fact that the  medical  or  child  care
HB1269 Enrolled            -52-                LRB9001000EGfg
 1    services  being compensated for by such payment may have been
 2    rendered in a prior fiscal year; and payments may be made  at
 3    the   direction  of  the  Department  of  Central  Management
 4    Services from the Health Insurance Reserve Fund and the Local
 5    Government Health Insurance Reserve Fund  without  regard  to
 6    any fiscal year limitations.
 7        Additionally,  payments  may be made by the Department of
 8    Human Services from its appropriations, or  any  other  State
 9    agency  from  its  appropriations  with  the  approval of the
10    Department of Human Services, from the Immigration Reform and
11    Control  Fund  for  purposes  authorized  pursuant   to   the
12    Immigration Reform and Control Act of 1986, without regard to
13    any fiscal year limitations.
14        (c)  Further,  payments  may be made by the Department of
15    Public Health and the Department of Human Services (acting as
16    successor to  the  Department  of  Public  Health  under  the
17    Department  of  Human  Services  Act)  from  their respective
18    appropriations for grants for medical care to or on behalf of
19    persons  suffering  from  chronic  renal   disease,   persons
20    suffering  from  hemophilia,  rape victims, and premature and
21    high-mortality risk infants and their mothers and for  grants
22    for  supplemental  food  supplies  provided  under the United
23    States Department of Agriculture Women, Infants and  Children
24    Nutrition  Program, for any fiscal year without regard to the
25    fact that the services being compensated for by such  payment
26    may have been rendered in a prior fiscal year.
27        (d)  The  Department  of Public Health and the Department
28    of Human Services (acting as successor to the  Department  of
29    Public  Health  under  the  Department of Human Services Act)
30    shall each annually submit to the State  Comptroller,  Senate
31    President,  Senate  Minority  Leader,  Speaker  of the House,
32    House  Minority  Leader,  and  the  respective  Chairmen  and
33    Minority Spokesmen of the Appropriations  Committees  of  the
34    Senate  and  the House, on or before December 31, a report of
HB1269 Enrolled            -53-                LRB9001000EGfg
 1    fiscal year funds used to pay for services  provided  in  any
 2    prior  fiscal year.  This report shall document by program or
 3    service category those expenditures from  the  most  recently
 4    completed  fiscal  year  used to pay for services provided in
 5    prior fiscal years.
 6        (e)  The Department of Public Aid and the  Department  of
 7    Human  Services  (acting  as  successor  to the Department of
 8    Public  Aid)  shall  each  annually  submit  to   the   State
 9    Comptroller,   Senate   President,  Senate  Minority  Leader,
10    Speaker of the House, House Minority Leader,  the  respective
11    Chairmen   and   Minority  Spokesmen  of  the  Appropriations
12    Committees of the Senate and the House, on or before November
13    30, a report  that  shall  document  by  program  or  service
14    category  those expenditures from the most recently completed
15    fiscal year used to pay for (i) services  provided  in  prior
16    fiscal years and (ii) services for which claims were received
17    in prior fiscal years.
18        (f)  The  Department  of  Human Services (as successor to
19    the Department of Public Aid) shall annually  submit  to  the
20    State  Comptroller, Senate President, Senate Minority Leader,
21    Speaker  of  the  House,  House  Minority  Leader,  and   the
22    respective   Chairmen   and   Minority   Spokesmen   of   the
23    Appropriations  Committees of the Senate and the House, on or
24    before December 31, a report of fiscal year funds used to pay
25    for services (other than medical care) provided in any  prior
26    fiscal  year.   This  report  shall  document  by  program or
27    service category those expenditures from  the  most  recently
28    completed  fiscal  year  used to pay for services provided in
29    prior fiscal years.
30        (g)  In addition,  each  annual  report  required  to  be
31    submitted  by  the  Department of Public Aid under subsection
32    (e) shall include the following information with  respect  to
33    the State's Medicaid program:
34             (1)  Explanations   of   the  exact  causes  of  the
HB1269 Enrolled            -54-                LRB9001000EGfg
 1        variance between the previous year's estimated and actual
 2        liabilities.
 3             (2)  Factors  affecting  the  Department  of  Public
 4        Aid's liabilities, including but not limited  to  numbers
 5        of  aid recipients, levels of medical service utilization
 6        by aid recipients, and inflation in the cost  of  medical
 7        services.
 8             (3)  The  results  of  the  Department's  efforts to
 9        combat fraud and abuse.
10        (h)  As provided in Section 4  of  the  General  Assembly
11    Compensation  Act, any utility bill for service provided to a
12    General  Assembly  member's  district  office  for  a  period
13    including portions of 2 consecutive fiscal years may be  paid
14    from funds appropriated for such expenditure in either fiscal
15    year.
16        (i)  An agency which administers a fund classified by the
17    Comptroller as an internal service fund may issue rules for:
18             (1)  billing  user  agencies  in  advance  based  on
19        estimated charges for goods or services;
20             (2)  issuing  credits  during  the subsequent fiscal
21        year for all user agency  payments  received  during  the
22        prior  fiscal  year  which  were  in  excess of the final
23        amounts owed by the user agency for that period; and
24             (3)  issuing  catch-up  billings  to  user  agencies
25        during the subsequent fiscal year for  amounts  remaining
26        due  when  payments  received from the user agency during
27        the prior fiscal year were less  than  the  total  amount
28        owed for that period.
29    User  agencies  are  authorized to reimburse internal service
30    funds for catch-up billings by vouchers drawn  against  their
31    respective  appropriations  for  the fiscal year in which the
32    catch-up billing was issued.
33    (Source: P.A. 88-554, eff.  7-26-94;  88-575,  eff.  8-12-94;
34    89-235,  eff.  8-4-95;  89-507,  eff.  7-1-97;  89-511,  eff.
HB1269 Enrolled            -55-                LRB9001000EGfg
 1    1-1-97; revised 9-10-96.)
 2        Section  2-70.   The  State  Mandates  Act  is amended by
 3    changing, combining, and  renumbering  multiple  versions  of
 4    Sections 8.20 and 8.21 as follows:
 5        (30 ILCS 805/8.20)
 6        Sec.    8.20.    8.21.     Exempt    mandates    mandate.
 7    Notwithstanding   Sections   6   and   8   of  this  Act,  no
 8    reimbursement by the State is required for the implementation
 9    of any mandate created by Public Act 89-510, 89-513,  89-514,
10    89-606,  89-617,  89-643,  89-671,  89-683, 89-690, or 89-705
11    this amendatory Act of 1996 1997.
12    (Source: P.A. 89-510, eff.  7-11-96;  89-513,  eff.  9-15-96;
13    89-514,  eff.  7-17-96;  89-606,  eff.  1-1-97;  89-617, eff.
14    9-1-96; 89-643, eff. 8-9-96; 89-671,  eff.  8-14-96;  89-683,
15    eff.  6-1-97;  89-690,  eff.  6-1-97;  89-705,  eff. 1-31-97;
16    revised 2-12-97.)
17        Section 2-75.  The Use Tax Act  is  amended  by  changing
18    Section 3-5 as follows:
19        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
20        Sec.  3-5.   Exemptions.   Use  of the following tangible
21    personal property is exempt from the tax imposed by this Act:
22        (1)  Personal  property  purchased  from  a  corporation,
23    society,    association,    foundation,    institution,    or
24    organization, other than a limited liability company, that is
25    organized and operated as a not-for-profit service enterprise
26    for the benefit of persons 65 years of age or  older  if  the
27    personal property was not purchased by the enterprise for the
28    purpose of resale by the enterprise.
29        (2)  Personal  property  purchased  by  a  not-for-profit
30    Illinois  county  fair  association  for  use  in conducting,
HB1269 Enrolled            -56-                LRB9001000EGfg
 1    operating, or promoting the county fair.
 2        (3)  Personal  property  purchased  by  a  not-for-profit
 3    music or dramatic  arts  organization  that  establishes,  by
 4    proof  required  by  the  Department  by  rule,  that  it has
 5    received an exemption under Section 501(c)(3) of the Internal
 6    Revenue Code and that  is  organized  and  operated  for  the
 7    presentation  of  live  public  performances  of  musical  or
 8    theatrical works on a regular basis.
 9        (4)  Personal  property purchased by a governmental body,
10    by  a  corporation,  society,  association,  foundation,   or
11    institution    organized   and   operated   exclusively   for
12    charitable, religious,  or  educational  purposes,  or  by  a
13    not-for-profit corporation, society, association, foundation,
14    institution, or organization that has no compensated officers
15    or employees and that is organized and operated primarily for
16    the recreation of persons 55 years of age or older. A limited
17    liability  company  may  qualify for the exemption under this
18    paragraph only if the limited liability company is  organized
19    and  operated  exclusively  for  educational purposes. On and
20    after July 1, 1987, however, no entity otherwise eligible for
21    this exemption shall make tax-free purchases unless it has an
22    active  exemption  identification  number   issued   by   the
23    Department.
24        (5)  A passenger car that is a replacement vehicle to the
25    extent  that  the purchase price of the car is subject to the
26    Replacement Vehicle Tax.
27        (6)  Graphic  arts  machinery  and  equipment,  including
28    repair  and  replacement  parts,  both  new  and  used,   and
29    including  that  manufactured  on special order, certified by
30    the  purchaser  to  be  used  primarily  for   graphic   arts
31    production,  and  including machinery and equipment purchased
32    for lease.
33        (7)  Farm chemicals.
34        (8)  Legal  tender,  currency,  medallions,  or  gold  or
HB1269 Enrolled            -57-                LRB9001000EGfg
 1    silver  coinage  issued  by  the  State  of   Illinois,   the
 2    government of the United States of America, or the government
 3    of any foreign country, and bullion.
 4        (9)  Personal property purchased from a teacher-sponsored
 5    student   organization   affiliated  with  an  elementary  or
 6    secondary school located in Illinois.
 7        (10)  A motor vehicle of  the  first  division,  a  motor
 8    vehicle of the second division that is a self-contained motor
 9    vehicle  designed  or permanently converted to provide living
10    quarters for  recreational,  camping,  or  travel  use,  with
11    direct  walk through to the living quarters from the driver's
12    seat, or a motor vehicle of the second division  that  is  of
13    the  van configuration designed for the transportation of not
14    less than 7 nor  more  than  16  passengers,  as  defined  in
15    Section  1-146 of the Illinois Vehicle Code, that is used for
16    automobile renting, as  defined  in  the  Automobile  Renting
17    Occupation and Use Tax Act.
18        (11)  Farm  machinery  and  equipment, both new and used,
19    including that manufactured on special  order,  certified  by
20    the purchaser to be used primarily for production agriculture
21    or   State   or   federal  agricultural  programs,  including
22    individual replacement parts for the machinery and equipment,
23    and including machinery and equipment  purchased  for  lease,
24    but  excluding motor vehicles required to be registered under
25    the Illinois Vehicle Code.
26        (12)  Fuel and petroleum products sold to or used  by  an
27    air  common  carrier, certified by the carrier to be used for
28    consumption, shipment, or  storage  in  the  conduct  of  its
29    business  as an air common carrier, for a flight destined for
30    or returning from a location or locations outside the  United
31    States  without  regard  to  previous  or subsequent domestic
32    stopovers.
33        (13)  Proceeds of mandatory  service  charges  separately
34    stated  on  customers' bills for the purchase and consumption
HB1269 Enrolled            -58-                LRB9001000EGfg
 1    of food and beverages purchased at retail from a retailer, to
 2    the extent that the proceeds of the  service  charge  are  in
 3    fact  turned  over as tips or as a substitute for tips to the
 4    employees who participate  directly  in  preparing,  serving,
 5    hosting  or  cleaning  up  the food or beverage function with
 6    respect to which the service charge is imposed.
 7        (14)  Oil field  exploration,  drilling,  and  production
 8    equipment, including (i) rigs and parts of rigs, rotary rigs,
 9    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
10    goods, including casing and drill strings,  (iii)  pumps  and
11    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
12    individual  replacement  part  for  oil  field   exploration,
13    drilling,  and  production  equipment, and (vi) machinery and
14    equipment purchased for lease; but excluding  motor  vehicles
15    required to be registered under the Illinois Vehicle Code.
16        (15)  Photoprocessing  machinery and equipment, including
17    repair and replacement parts, both new  and  used,  including
18    that   manufactured   on  special  order,  certified  by  the
19    purchaser to  be  used  primarily  for  photoprocessing,  and
20    including  photoprocessing  machinery and equipment purchased
21    for lease.
22        (16)  Coal  exploration,  mining,   offhighway   hauling,
23    processing, maintenance, and reclamation equipment, including
24    replacement  parts  and  equipment,  and  including equipment
25    purchased for lease, but excluding motor vehicles required to
26    be registered under the Illinois Vehicle Code.
27        (17)  Distillation machinery and  equipment,  sold  as  a
28    unit   or  kit,  assembled  or  installed  by  the  retailer,
29    certified by the user to be used only for the  production  of
30    ethyl alcohol that will be used for consumption as motor fuel
31    or  as  a component of motor fuel for the personal use of the
32    user, and not subject to sale or resale.
33        (18)  Manufacturing   and   assembling   machinery    and
34    equipment  used  primarily in the process of manufacturing or
HB1269 Enrolled            -59-                LRB9001000EGfg
 1    assembling tangible personal property for wholesale or retail
 2    sale or lease, whether that sale or lease is made directly by
 3    the  manufacturer  or  by  some  other  person,  whether  the
 4    materials used in the process are owned by  the  manufacturer
 5    or  some  other person, or whether that sale or lease is made
 6    apart from or as an incident to the seller's engaging in  the
 7    service  occupation of producing machines, tools, dies, jigs,
 8    patterns, gauges, or other similar  items  of  no  commercial
 9    value on special order for a particular purchaser.
10        (19)  Personal  property  delivered  to  a  purchaser  or
11    purchaser's donee inside Illinois when the purchase order for
12    that  personal  property  was  received  by a florist located
13    outside Illinois who has a florist  located  inside  Illinois
14    deliver the personal property.
15        (20)  Semen used for artificial insemination of livestock
16    for direct agricultural production.
17        (21)  Horses, or interests in horses, registered with and
18    meeting  the  requirements  of  any of the Arabian Horse Club
19    Registry of America, Appaloosa Horse Club,  American  Quarter
20    Horse  Association,  United  States  Trotting Association, or
21    Jockey Club, as appropriate, used for purposes of breeding or
22    racing for prizes.
23        (22)   Computers and  communications  equipment  utilized
24    for any hospital purpose and equipment used in the diagnosis,
25    analysis,  or  treatment  of hospital patients purchased by a
26    lessor who leases the equipment, under a lease of one year or
27    longer executed or in effect at the  time  the  lessor  would
28    otherwise  be  subject  to  the tax imposed by this Act, to a
29    hospital  that  has  been  issued  an  active  tax  exemption
30    identification  number  by the Department under Section 1g of
31    the Retailers' Occupation  Tax  Act.   If  the  equipment  is
32    leased  in  a manner that does not qualify for this exemption
33    or is used in any other non-exempt manner, the  lessor  shall
34    be  liable  for the tax imposed under this Act or the Service
HB1269 Enrolled            -60-                LRB9001000EGfg
 1    Use Tax Act, as the case may be, based  on  the  fair  market
 2    value  of  the  property  at  the time the non-qualifying use
 3    occurs.  No lessor shall collect or  attempt  to  collect  an
 4    amount  (however  designated) that purports to reimburse that
 5    lessor for the tax imposed by this Act or the Service Use Tax
 6    Act, as the case may be, if the tax has not been paid by  the
 7    lessor.  If a lessor improperly collects any such amount from
 8    the  lessee,  the  lessee shall have a legal right to claim a
 9    refund of that amount from the  lessor.   If,  however,  that
10    amount  is  not  refunded  to  the lessee for any reason, the
11    lessor is liable to pay that amount to the Department.
12        (23)   Personal property purchased by a lessor who leases
13    the property, under a lease of  one year or  longer  executed
14    or  in  effect  at  the  time  the  lessor would otherwise be
15    subject to the tax imposed by this  Act,  to  a  governmental
16    body  that  has  been  issued  an  active sales tax exemption
17    identification number by the Department under Section  1g  of
18    the  Retailers' Occupation Tax Act. If the property is leased
19    in a manner that does not qualify for this exemption or  used
20    in  any  other  non-exempt manner, the lessor shall be liable
21    for the tax imposed under this Act or  the  Service  Use  Tax
22    Act,  as  the  case may be, based on the fair market value of
23    the property at the time the non-qualifying use  occurs.   No
24    lessor shall collect or attempt to collect an amount (however
25    designated)  that  purports  to reimburse that lessor for the
26    tax imposed by this Act or the Service Use Tax  Act,  as  the
27    case  may be, if the tax has not been paid by the lessor.  If
28    a lessor improperly collects any such amount from the lessee,
29    the lessee shall have a legal right to claim a refund of that
30    amount from the lessor.  If,  however,  that  amount  is  not
31    refunded  to  the lessee for any reason, the lessor is liable
32    to pay that amount to the Department.
33        (24)   Beginning with taxable years ending  on  or  after
34    December  31, 1995 and ending with taxable years ending on or
HB1269 Enrolled            -61-                LRB9001000EGfg
 1    before December 31, 2004, personal property that  is  donated
 2    for  disaster  relief  to  be  used  in  a State or federally
 3    declared disaster area in Illinois or bordering Illinois by a
 4    manufacturer or retailer that is registered in this State  to
 5    a   corporation,   society,   association,   foundation,   or
 6    institution  that  has  been  issued  a  sales  tax exemption
 7    identification number by the Department that assists  victims
 8    of the disaster who reside within the declared disaster area.
 9        (25)   Beginning  with  taxable  years ending on or after
10    December 31, 1995 and ending with taxable years ending on  or
11    before  December  31, 2004, personal property that is used in
12    the performance of  infrastructure  repairs  in  this  State,
13    including  but  not  limited  to municipal roads and streets,
14    access roads, bridges,  sidewalks,  waste  disposal  systems,
15    water  and  sewer  line  extensions,  water  distribution and
16    purification facilities, storm water drainage  and  retention
17    facilities, and sewage treatment facilities, resulting from a
18    State or federally declared disaster in Illinois or bordering
19    Illinois  when  such  repairs  are  initiated  on  facilities
20    located  in  the declared disaster area within 6 months after
21    the disaster.
22    (Source: P.A. 88-337; 88-480; 88-547; 88-670,  eff.  12-2-94;
23    89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
24    8-17-95;  89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
25    eff. 8-9-96; revised 8-21-96.)
26        Section 2-80.  The Service Use  Tax  Act  is  amended  by
27    changing Section 3-5 as follows:
28        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
29        Sec.  3-5.   Exemptions.   Use  of the following tangible
30    personal property is exempt from the tax imposed by this Act:
31        (1)  Personal  property  purchased  from  a  corporation,
32    society,    association,    foundation,    institution,    or
HB1269 Enrolled            -62-                LRB9001000EGfg
 1    organization, other than a limited liability company, that is
 2    organized and operated as a not-for-profit service enterprise
 3    for the benefit of persons 65 years of age or  older  if  the
 4    personal property was not purchased by the enterprise for the
 5    purpose of resale by the enterprise.
 6        (2)  Personal property purchased by a non-profit Illinois
 7    county  fair association for use in conducting, operating, or
 8    promoting the county fair.
 9        (3)  Personal  property  purchased  by  a  not-for-profit
10    music or dramatic  arts  organization  that  establishes,  by
11    proof  required  by  the  Department  by  rule,  that  it has
12    received an exemption under Section 501(c)(3) of the Internal
13    Revenue Code and that  is  organized  and  operated  for  the
14    presentation  of  live  public  performances  of  musical  or
15    theatrical works on a regular basis.
16        (4)  Legal  tender,  currency,  medallions,  or  gold  or
17    silver   coinage   issued  by  the  State  of  Illinois,  the
18    government of the United States of America, or the government
19    of any foreign country, and bullion.
20        (5)  Graphic  arts  machinery  and  equipment,  including
21    repair  and  replacement  parts,  both  new  and  used,   and
22    including that manufactured on special order or purchased for
23    lease,  certified  by  the purchaser to be used primarily for
24    graphic arts production.
25        (6)  Personal property purchased from a teacher-sponsored
26    student  organization  affiliated  with  an   elementary   or
27    secondary school located in Illinois.
28        (7)  Farm  machinery  and  equipment,  both new and used,
29    including that manufactured on special  order,  certified  by
30    the purchaser to be used primarily for production agriculture
31    or   State   or   federal  agricultural  programs,  including
32    individual replacement parts for the machinery and equipment,
33    and including machinery and equipment  purchased  for  lease,
34    but  excluding motor vehicles required to be registered under
HB1269 Enrolled            -63-                LRB9001000EGfg
 1    the Illinois Vehicle Code.
 2        (8)  Fuel and petroleum products sold to or  used  by  an
 3    air  common  carrier, certified by the carrier to be used for
 4    consumption, shipment, or  storage  in  the  conduct  of  its
 5    business  as an air common carrier, for a flight destined for
 6    or returning from a location or locations outside the  United
 7    States  without  regard  to  previous  or subsequent domestic
 8    stopovers.
 9        (9)  Proceeds of  mandatory  service  charges  separately
10    stated  on  customers' bills for the purchase and consumption
11    of food and beverages acquired as an incident to the purchase
12    of a service from  a  serviceman,  to  the  extent  that  the
13    proceeds  of  the  service  charge are in fact turned over as
14    tips or as  a  substitute  for  tips  to  the  employees  who
15    participate   directly  in  preparing,  serving,  hosting  or
16    cleaning up the food or beverage  function  with  respect  to
17    which the service charge is imposed.
18        (10)  Oil  field  exploration,  drilling,  and production
19    equipment, including (i) rigs and parts of rigs, rotary rigs,
20    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
21    goods,  including  casing  and drill strings, (iii) pumps and
22    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
23    individual   replacement  part  for  oil  field  exploration,
24    drilling, and production equipment, and  (vi)  machinery  and
25    equipment  purchased  for lease; but excluding motor vehicles
26    required to be registered under the Illinois Vehicle Code.
27        (11)  Proceeds from the sale of photoprocessing machinery
28    and equipment, including repair and replacement  parts,  both
29    new  and  used, including that manufactured on special order,
30    certified  by  the  purchaser  to  be  used   primarily   for
31    photoprocessing,  and including photoprocessing machinery and
32    equipment purchased for lease.
33        (12)  Coal  exploration,  mining,   offhighway   hauling,
34    processing, maintenance, and reclamation equipment, including
HB1269 Enrolled            -64-                LRB9001000EGfg
 1    replacement  parts  and  equipment,  and  including equipment
 2    purchased for lease, but excluding motor vehicles required to
 3    be registered under the Illinois Vehicle Code.
 4        (13)  Semen used for artificial insemination of livestock
 5    for direct agricultural production.
 6        (14)  Horses, or interests in horses, registered with and
 7    meeting the requirements of any of  the  Arabian  Horse  Club
 8    Registry  of  America, Appaloosa Horse Club, American Quarter
 9    Horse Association, United  States  Trotting  Association,  or
10    Jockey Club, as appropriate, used for purposes of breeding or
11    racing for prizes.
12        (15)  Computers and communications equipment utilized for
13    any  hospital  purpose  and  equipment used in the diagnosis,
14    analysis, or treatment of hospital patients  purchased  by  a
15    lessor who leases the equipment, under a lease of one year or
16    longer  executed  or  in  effect at the time the lessor would
17    otherwise be subject to the tax imposed by  this  Act,  to  a
18    hospital  that  has  been  issued  an  active  tax  exemption
19    identification  number  by the Department under Section 1g of
20    the Retailers' Occupation Tax Act. If the equipment is leased
21    in a manner that does not qualify for this  exemption  or  is
22    used  in  any  other  non-exempt  manner, the lessor shall be
23    liable for the tax imposed under this Act or the Use Tax Act,
24    as the case may be, based on the fair  market  value  of  the
25    property  at  the  time  the  non-qualifying  use occurs.  No
26    lessor shall collect or attempt to collect an amount (however
27    designated) that purports to reimburse that  lessor  for  the
28    tax  imposed  by this Act or the Use Tax Act, as the case may
29    be, if the tax has not been paid by the lessor.  If a  lessor
30    improperly  collects  any  such  amount  from the lessee, the
31    lessee shall have a legal right to claim  a  refund  of  that
32    amount  from  the  lessor.   If,  however, that amount is not
33    refunded to the lessee for any reason, the lessor  is  liable
34    to pay that amount to the Department.
HB1269 Enrolled            -65-                LRB9001000EGfg
 1        (16)  Personal  property purchased by a lessor who leases
 2    the property, under a lease of one year or longer executed or
 3    in effect at the time the lessor would otherwise  be  subject
 4    to  the  tax imposed by this Act, to a governmental body that
 5    has been issued an active tax exemption identification number
 6    by  the  Department  under  Section  1g  of  the   Retailers'
 7    Occupation  Tax  Act.   If the property is leased in a manner
 8    that does not qualify for this exemption or is  used  in  any
 9    other  non-exempt  manner, the lessor shall be liable for the
10    tax imposed under this Act or the Use Tax Act,  as  the  case
11    may be, based on the fair market value of the property at the
12    time  the non-qualifying use occurs.  No lessor shall collect
13    or attempt to collect an  amount  (however  designated)  that
14    purports to reimburse that lessor for the tax imposed by this
15    Act  or  the  Use Tax Act, as the case may be, if the tax has
16    not been paid by the lessor.  If a lessor improperly collects
17    any such amount from the lessee,  the  lessee  shall  have  a
18    legal right to claim a refund of that amount from the lessor.
19    If,  however,  that  amount is not refunded to the lessee for
20    any reason, the lessor is liable to pay that  amount  to  the
21    Department.
22        (17)  Beginning  with  taxable  years  ending on or after
23    December 31, 1995 and ending with taxable years ending on  or
24    before  December  31, 2004, personal property that is donated
25    for disaster relief to  be  used  in  a  State  or  federally
26    declared disaster area in Illinois or bordering Illinois by a
27    manufacturer  or retailer that is registered in this State to
28    a   corporation,   society,   association,   foundation,   or
29    institution that  has  been  issued  a  sales  tax  exemption
30    identification  number by the Department that assists victims
31    of the disaster who reside within the declared disaster area.
32        (18)   Beginning with taxable years ending  on  or  after
33    December  31, 1995 and ending with taxable years ending on or
34    before December 31, 2004, personal property that is  used  in
HB1269 Enrolled            -66-                LRB9001000EGfg
 1    the  performance  of  infrastructure  repairs  in this State,
 2    including but not limited to  municipal  roads  and  streets,
 3    access  roads,  bridges,  sidewalks,  waste disposal systems,
 4    water and  sewer  line  extensions,  water  distribution  and
 5    purification  facilities,  storm water drainage and retention
 6    facilities, and sewage treatment facilities, resulting from a
 7    State or federally declared disaster in Illinois or bordering
 8    Illinois  when  such  repairs  are  initiated  on  facilities
 9    located in the declared disaster area within 6  months  after
10    the disaster.
11    (Source:  P.A.  88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
12    89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
13    8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96;  89-626,
14    eff. 8-9-96; revised 8-21-96.)
15        Section  2-85.  The Service Occupation Tax Act is amended
16    by changing Section 3-5 as follows:
17        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
18        Sec. 3-5.  Exemptions.  The following  tangible  personal
19    property is exempt from the tax imposed by this Act:
20        (1)  Personal  property  sold  by a corporation, society,
21    association, foundation, institution, or organization,  other
22    than  a  limited  liability  company,  that  is organized and
23    operated as  a  not-for-profit  service  enterprise  for  the
24    benefit  of  persons 65 years of age or older if the personal
25    property was not purchased by the enterprise for the  purpose
26    of resale by the enterprise.
27        (2)  Personal  property  purchased  by  a  not-for-profit
28    Illinois  county  fair  association  for  use  in conducting,
29    operating, or promoting the county fair.
30        (3)  Personal property purchased  by  any  not-for-profit
31    music  or  dramatic  arts  organization  that establishes, by
32    proof required  by  the  Department  by  rule,  that  it  has
HB1269 Enrolled            -67-                LRB9001000EGfg
 1    received   an  exemption   under  Section  501(c)(3)  of  the
 2    Internal Revenue Code and that is organized and operated  for
 3    the  presentation  of  live public performances of musical or
 4    theatrical works on a regular basis.
 5        (4)  Legal  tender,  currency,  medallions,  or  gold  or
 6    silver  coinage  issued  by  the  State  of   Illinois,   the
 7    government of the United States of America, or the government
 8    of any foreign country, and bullion.
 9        (5)  Graphic  arts  machinery  and  equipment,  including
10    repair   and  replacement  parts,  both  new  and  used,  and
11    including that manufactured on special order or purchased for
12    lease, certified by the purchaser to be  used  primarily  for
13    graphic arts production.
14        (6)  Personal   property   sold  by  a  teacher-sponsored
15    student  organization  affiliated  with  an   elementary   or
16    secondary school located in Illinois.
17        (7)  Farm  machinery  and  equipment,  both new and used,
18    including that manufactured on special  order,  certified  by
19    the purchaser to be used primarily for production agriculture
20    or   State   or   federal  agricultural  programs,  including
21    individual replacement parts for the machinery and equipment,
22    and including machinery and equipment  purchased  for  lease,
23    but  excluding motor vehicles required to be registered under
24    the Illinois Vehicle Code.
25        (8)  Fuel and petroleum products sold to or  used  by  an
26    air  common  carrier, certified by the carrier to be used for
27    consumption, shipment, or  storage  in  the  conduct  of  its
28    business  as an air common carrier, for a flight destined for
29    or returning from a location or locations outside the  United
30    States  without  regard  to  previous  or subsequent domestic
31    stopovers.
32        (9)  Proceeds of  mandatory  service  charges  separately
33    stated  on  customers' bills for the purchase and consumption
34    of food and beverages, to the extent that the proceeds of the
HB1269 Enrolled            -68-                LRB9001000EGfg
 1    service charge are in fact  turned  over  as  tips  or  as  a
 2    substitute for tips to the employees who participate directly
 3    in  preparing,  serving,  hosting  or cleaning up the food or
 4    beverage function with respect to which the service charge is
 5    imposed.
 6        (10)  Oil field  exploration,  drilling,  and  production
 7    equipment, including (i) rigs and parts of rigs, rotary rigs,
 8    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 9    goods, including casing and drill strings,  (iii)  pumps  and
10    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
11    individual  replacement  part  for  oil  field   exploration,
12    drilling,  and  production  equipment, and (vi) machinery and
13    equipment purchased for lease; but excluding  motor  vehicles
14    required to be registered under the Illinois Vehicle Code.
15        (11)  Photoprocessing  machinery and equipment, including
16    repair and replacement parts, both new  and  used,  including
17    that   manufactured   on  special  order,  certified  by  the
18    purchaser to  be  used  primarily  for  photoprocessing,  and
19    including  photoprocessing  machinery and equipment purchased
20    for lease.
21        (12)  Coal  exploration,  mining,   offhighway   hauling,
22    processing, maintenance, and reclamation equipment, including
23    replacement  parts  and  equipment,  and  including equipment
24    purchased for lease, but excluding motor vehicles required to
25    be registered under the Illinois Vehicle Code.
26        (13)  Food for human consumption that is to  be  consumed
27    off  the  premises  where  it  is  sold (other than alcoholic
28    beverages, soft drinks and food that has  been  prepared  for
29    immediate  consumption)  and prescription and nonprescription
30    medicines, drugs,  medical  appliances,  and  insulin,  urine
31    testing  materials,  syringes, and needles used by diabetics,
32    for human use, when purchased for use by a  person  receiving
33    medical assistance under Article 5 of the Illinois Public Aid
34    Code  who  resides  in a licensed long-term care facility, as
HB1269 Enrolled            -69-                LRB9001000EGfg
 1    defined in the Nursing Home Care Act.
 2        (14)  Semen used for artificial insemination of livestock
 3    for direct agricultural production.
 4        (15)  Horses, or interests in horses, registered with and
 5    meeting the requirements of any of  the  Arabian  Horse  Club
 6    Registry  of  America, Appaloosa Horse Club, American Quarter
 7    Horse Association, United  States  Trotting  Association,  or
 8    Jockey Club, as appropriate, used for purposes of breeding or
 9    racing for prizes.
10        (16)   Computers  and  communications  equipment utilized
11    for any hospital purpose and equipment used in the diagnosis,
12    analysis, or treatment of hospital patients sold to a  lessor
13    who leases the equipment, under a lease of one year or longer
14    executed  or  in  effect  at  the  time of the purchase, to a
15    hospital  that  has  been  issued  an  active  tax  exemption
16    identification number by the Department under Section  1g  of
17    the Retailers' Occupation Tax Act.
18        (17)   Personal  property sold to a lessor who leases the
19    property, under a lease of one year or longer executed or  in
20    effect  at  the  time of the purchase, to a governmental body
21    that has been issued an active tax  exemption  identification
22    number  by  the Department under Section 1g of the Retailers'
23    Occupation Tax Act.
24        (18)   Beginning with taxable years ending  on  or  after
25    December  31, 1995 and ending with taxable years ending on or
26    before December 31, 2004, personal property that  is  donated
27    for  disaster  relief  to  be  used  in  a State or federally
28    declared disaster area in Illinois or bordering Illinois by a
29    manufacturer or retailer that is registered in this State  to
30    a   corporation,   society,   association,   foundation,   or
31    institution  that  has  been  issued  a  sales  tax exemption
32    identification number by the Department that assists  victims
33    of the disaster who reside within the declared disaster area.
34        (19)   Beginning  with  taxable  years ending on or after
HB1269 Enrolled            -70-                LRB9001000EGfg
 1    December 31, 1995 and ending with taxable years ending on  or
 2    before  December  31, 2004, personal property that is used in
 3    the performance of  infrastructure  repairs  in  this  State,
 4    including  but  not  limited  to municipal roads and streets,
 5    access roads, bridges,  sidewalks,  waste  disposal  systems,
 6    water  and  sewer  line  extensions,  water  distribution and
 7    purification facilities, storm water drainage  and  retention
 8    facilities, and sewage treatment facilities, resulting from a
 9    State or federally declared disaster in Illinois or bordering
10    Illinois  when  such  repairs  are  initiated  on  facilities
11    located  in  the declared disaster area within 6 months after
12    the disaster.
13    (Source: P.A. 88-337; 88-480; 88-547; 88-670,  eff.  12-2-94;
14    89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
15    8-17-95;  89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
16    eff. 8-9-96; revised 8-21-96.)
17        Section 2-90.   The  Retailers'  Occupation  Tax  Act  is
18    amended by changing Section 2-5 as follows:
19        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
20        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
21    the  sale  of  the  following  tangible personal property are
22    exempt from the tax imposed by this Act:
23        (1)  Farm chemicals.
24        (2)  Farm machinery and equipment,  both  new  and  used,
25    including  that  manufactured  on special order, certified by
26    the purchaser to be used primarily for production agriculture
27    or  State  or  federal   agricultural   programs,   including
28    individual replacement parts for the machinery and equipment,
29    and  including  machinery  and equipment purchased for lease,
30    but excluding motor vehicles required to be registered  under
31    the Illinois Vehicle Code.
32        (3)  Distillation machinery and equipment, sold as a unit
HB1269 Enrolled            -71-                LRB9001000EGfg
 1    or  kit, assembled or installed by the retailer, certified by
 2    the user to be used only for the production of ethyl  alcohol
 3    that  will  be  used  for  consumption  as motor fuel or as a
 4    component of motor fuel for the personal use of the user, and
 5    not subject to sale or resale.
 6        (4)  Graphic  arts  machinery  and  equipment,  including
 7    repair  and  replacement  parts,  both  new  and  used,   and
 8    including that manufactured on special order or purchased for
 9    lease,  certified  by  the purchaser to be used primarily for
10    graphic arts production.
11        (5)  A motor vehicle  of  the  first  division,  a  motor
12    vehicle of the second division that is a self-contained motor
13    vehicle  designed  or permanently converted to provide living
14    quarters for  recreational,  camping,  or  travel  use,  with
15    direct  walk  through  access to the living quarters from the
16    driver's seat, or a motor vehicle of the second division that
17    is of the van configuration designed for  the  transportation
18    of not less than 7 nor more than 16 passengers, as defined in
19    Section  1-146 of the Illinois Vehicle Code, that is used for
20    automobile renting, as  defined  in  the  Automobile  Renting
21    Occupation and Use Tax Act.
22        (6)  Personal   property   sold  by  a  teacher-sponsored
23    student  organization  affiliated  with  an   elementary   or
24    secondary school located in Illinois.
25        (7)  Proceeds  of  that portion of the selling price of a
26    passenger car the sale of which is subject to the Replacement
27    Vehicle Tax.
28        (8)  Personal property sold to an  Illinois  county  fair
29    association  for  use  in conducting, operating, or promoting
30    the county fair.
31        (9)  Personal property sold to a not-for-profit music  or
32    dramatic   arts   organization  that  establishes,  by  proof
33    required by the Department by rule, that it has  received  an
34    exemption  under  Section  501(c) (3) of the Internal Revenue
HB1269 Enrolled            -72-                LRB9001000EGfg
 1    Code and that is organized and operated for the  presentation
 2    of live public performances of musical or theatrical works on
 3    a regular basis.
 4        (10)  Personal  property  sold by a corporation, society,
 5    association, foundation, institution, or organization,  other
 6    than  a  limited  liability  company,  that  is organized and
 7    operated as  a  not-for-profit  service  enterprise  for  the
 8    benefit  of  persons 65 years of age or older if the personal
 9    property was not purchased by the enterprise for the  purpose
10    of resale by the enterprise.
11        (11)  Personal property sold to a governmental body, to a
12    corporation, society, association, foundation, or institution
13    organized and operated exclusively for charitable, religious,
14    or  educational purposes, or to a not-for-profit corporation,
15    society,    association,    foundation,    institution,    or
16    organization that has no compensated  officers  or  employees
17    and   that  is  organized  and  operated  primarily  for  the
18    recreation of persons 55 years of age  or  older.  A  limited
19    liability  company  may  qualify for the exemption under this
20    paragraph only if the limited liability company is  organized
21    and  operated  exclusively  for  educational purposes. On and
22    after July 1, 1987, however, no entity otherwise eligible for
23    this exemption shall make tax-free purchases unless it has an
24    active identification number issued by the Department.
25        (12)  Personal property sold to interstate  carriers  for
26    hire  for  use as rolling stock moving in interstate commerce
27    or to lessors under leases of one year or longer executed  or
28    in  effect at the time of purchase by interstate carriers for
29    hire for use as rolling stock moving in  interstate  commerce
30    and  equipment  operated  by  a  telecommunications provider,
31    licensed as a common carrier by  the  Federal  Communications
32    Commission,  which  is permanently installed in or affixed to
33    aircraft moving in interstate commerce.
34        (13)  Proceeds from sales to owners, lessors, or shippers
HB1269 Enrolled            -73-                LRB9001000EGfg
 1    of tangible personal property that is utilized by  interstate
 2    carriers  for  hire  for  use  as  rolling  stock  moving  in
 3    interstate    commerce    and   equipment   operated   by   a
 4    telecommunications provider, licensed as a common carrier  by
 5    the  Federal  Communications Commission, which is permanently
 6    installed in or affixed  to  aircraft  moving  in  interstate
 7    commerce.
 8        (14)  Machinery  and  equipment  that will be used by the
 9    purchaser, or a lessee of the  purchaser,  primarily  in  the
10    process  of  manufacturing  or  assembling  tangible personal
11    property for wholesale or retail sale or lease,  whether  the
12    sale or lease is made directly by the manufacturer or by some
13    other  person,  whether the materials used in the process are
14    owned by the manufacturer or some other  person,  or  whether
15    the sale or lease is made apart from or as an incident to the
16    seller's  engaging  in  the  service  occupation of producing
17    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
18    similar  items  of no commercial value on special order for a
19    particular purchaser.
20        (15)  Proceeds of mandatory  service  charges  separately
21    stated  on  customers'  bills for purchase and consumption of
22    food and beverages, to the extent that the  proceeds  of  the
23    service  charge  are  in  fact  turned  over  as tips or as a
24    substitute for tips to the employees who participate directly
25    in preparing, serving, hosting or cleaning  up  the  food  or
26    beverage function with respect to which the service charge is
27    imposed.
28        (16)  Petroleum  products  sold  to  a  purchaser  if the
29    seller is prohibited by federal law from charging tax to  the
30    purchaser.
31        (17)  Tangible personal property sold to a common carrier
32    by rail that receives the physical possession of the property
33    in  Illinois and that transports the property, or shares with
34    another common carrier in the transportation of the property,
HB1269 Enrolled            -74-                LRB9001000EGfg
 1    out of Illinois on a standard uniform bill of lading  showing
 2    the seller of the property as the shipper or consignor of the
 3    property  to  a destination outside Illinois, for use outside
 4    Illinois.
 5        (18)  Legal tender,  currency,  medallions,  or  gold  or
 6    silver   coinage   issued  by  the  State  of  Illinois,  the
 7    government of the United States of America, or the government
 8    of any foreign country, and bullion.
 9        (19)  Oil field  exploration,  drilling,  and  production
10    equipment, including (i) rigs and parts of rigs, rotary rigs,
11    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
12    goods, including casing and drill strings,  (iii)  pumps  and
13    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
14    individual  replacement  part  for  oil  field   exploration,
15    drilling,  and  production  equipment, and (vi) machinery and
16    equipment purchased for lease; but excluding  motor  vehicles
17    required to be registered under the Illinois Vehicle Code.
18        (20)  Photoprocessing  machinery and equipment, including
19    repair and replacement parts, both new  and  used,  including
20    that   manufactured   on  special  order,  certified  by  the
21    purchaser to  be  used  primarily  for  photoprocessing,  and
22    including  photoprocessing  machinery and equipment purchased
23    for lease.
24        (21)  Coal  exploration,  mining,   offhighway   hauling,
25    processing, maintenance, and reclamation equipment, including
26    replacement  parts  and  equipment,  and  including equipment
27    purchased for lease, but excluding motor vehicles required to
28    be registered under the Illinois Vehicle Code.
29        (22)  Fuel and petroleum products sold to or used  by  an
30    air  carrier,  certified  by  the  carrier  to  be  used  for
31    consumption,  shipment,  or  storage  in  the  conduct of its
32    business as an air common carrier, for a flight destined  for
33    or  returning from a location or locations outside the United
34    States without regard  to  previous  or  subsequent  domestic
HB1269 Enrolled            -75-                LRB9001000EGfg
 1    stopovers.
 2        (23)  A  transaction  in  which  the  purchase  order  is
 3    received  by  a  florist who is located outside Illinois, but
 4    who has a florist located in Illinois deliver the property to
 5    the purchaser or the purchaser's donee in Illinois.
 6        (24)  Fuel consumed or used in the  operation  of  ships,
 7    barges,  or  vessels  that  are  used primarily in or for the
 8    transportation of property or the conveyance of  persons  for
 9    hire  on  rivers  bordering  on  this  State  if  the fuel is
10    delivered by the seller to the purchaser's  barge,  ship,  or
11    vessel while it is afloat upon that bordering river.
12        (25)  A motor vehicle sold in this State to a nonresident
13    even though the motor vehicle is delivered to the nonresident
14    in  this  State,  if the motor vehicle is not to be titled in
15    this State, and if a driveaway decal permit is issued to  the
16    motor  vehicle  as  provided in Section 3-603 of the Illinois
17    Vehicle Code or if  the  nonresident  purchaser  has  vehicle
18    registration  plates  to  transfer  to the motor vehicle upon
19    returning to his or her home  state.   The  issuance  of  the
20    driveaway   decal   permit   or   having   the   out-of-state
21    registration plates to be transferred is prima facie evidence
22    that the motor vehicle will not be titled in this State.
23        (26)  Semen used for artificial insemination of livestock
24    for direct agricultural production.
25        (27)  Horses, or interests in horses, registered with and
26    meeting  the  requirements  of  any of the Arabian Horse Club
27    Registry of America, Appaloosa Horse Club,  American  Quarter
28    Horse  Association,  United  States  Trotting Association, or
29    Jockey Club, as appropriate, used for purposes of breeding or
30    racing for prizes.
31        (28)   Computers and  communications  equipment  utilized
32    for any hospital purpose and equipment used in the diagnosis,
33    analysis,  or treatment of hospital patients sold to a lessor
34    who leases the equipment, under a lease of one year or longer
HB1269 Enrolled            -76-                LRB9001000EGfg
 1    executed or in effect at the  time  of  the  purchase,  to  a
 2    hospital  that  has  been  issued  an  active  tax  exemption
 3    identification  number  by the Department under Section 1g of
 4    this Act.
 5        (29)   Personal property sold to a lessor who leases  the
 6    property,  under a lease of one year or longer executed or in
 7    effect at the time of the purchase, to  a  governmental  body
 8    that  has  been issued an active tax exemption identification
 9    number by the Department under Section 1g of this Act.
10        (30)   Beginning with taxable years ending  on  or  after
11    December  31, 1995 and ending with taxable years ending on or
12    before December 31, 2004, personal property that  is  donated
13    for  disaster  relief  to  be  used  in  a State or federally
14    declared disaster area in Illinois or bordering Illinois by a
15    manufacturer or retailer that is registered in this State  to
16    a   corporation,   society,   association,   foundation,   or
17    institution  that  has  been  issued  a  sales  tax exemption
18    identification number by the Department that assists  victims
19    of the disaster who reside within the declared disaster area.
20        (31)   Beginning  with  taxable  years ending on or after
21    December 31, 1995 and ending with taxable years ending on  or
22    before  December  31, 2004, personal property that is used in
23    the performance of  infrastructure  repairs  in  this  State,
24    including  but  not  limited  to municipal roads and streets,
25    access roads, bridges,  sidewalks,  waste  disposal  systems,
26    water  and  sewer  line  extensions,  water  distribution and
27    purification facilities, storm water drainage  and  retention
28    facilities, and sewage treatment facilities, resulting from a
29    State or federally declared disaster in Illinois or bordering
30    Illinois  when  such  repairs  are  initiated  on  facilities
31    located  in  the declared disaster area within 6 months after
32    the disaster.
33    (Source: P.A. 88-337; 88-480; 88-547; 88-670,  eff.  12-2-94;
34    89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
HB1269 Enrolled            -77-                LRB9001000EGfg
 1    8-17-95;  89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
 2    eff. 8-9-96; revised 8-21-96.)
 3        Section 2-95.   The  Property  Tax  Code  is  amended  by
 4    changing  Sections  15-172  and  15-180 and setting forth and
 5    renumbering multiple versions of Section 18-183 as follows:
 6        (35 ILCS 200/15-172)
 7        Sec. 15-172. Senior Citizens Assessment Freeze  Homestead
 8    Exemption.
 9        (a)  This  Section  may  be  cited as the Senior Citizens
10    Assessment Freeze Homestead Exemption.
11        (b)  As used in this Section:
12        "Applicant"  means  an  individual  who  has   filed   an
13    application under this Section.
14        "Base  amount"  means  the  base  year equalized assessed
15    value of  the  residence  plus  the  first  year's  equalized
16    assessed  value of any added improvements which increased the
17    assessed value of the residence after the base year.
18        "Base year" means the taxable year prior to  the  taxable
19    year  for which the applicant first qualifies and applies for
20    the exemption provided that in the  prior  taxable  year  the
21    property  was  improved  with  a permanent structure that was
22    occupied as a residence by the applicant who was  liable  for
23    paying real property taxes on the property and who was either
24    (i)  an  owner  of  record  of  the  property or had legal or
25    equitable interest in the property as evidenced by a  written
26    instrument  or  (ii)  had  a legal or equitable interest as a
27    lessee in the parcel  of  property  that  was  single  family
28    residence.
29        "Chief   County  Assessment  Officer"  means  the  County
30    Assessor or Supervisor of Assessments of the county in  which
31    the property is located.
32        "Equalized  assessed  value"  means the assessed value as
HB1269 Enrolled            -78-                LRB9001000EGfg
 1    equalized by the Illinois Department of Revenue.
 2        "Household"  means  the  applicant,  the  spouse  of  the
 3    applicant,  and  all  persons  using  the  residence  of  the
 4    applicant as their principal place of residence.
 5        "Household income"  means  the  combined  income  of  the
 6    members  of  a  household for the calendar year preceding the
 7    taxable year.
 8        "Income" has the same meaning as provided in Section 3.07
 9    of the Senior Citizens  and  Disabled  Persons  Property  Tax
10    Relief and Pharmaceutical Assistance Act.
11        "Internal  Revenue  Code of 1986" means the United States
12    Internal Revenue Code of 1986 or any successor  law  or  laws
13    relating  to  federal  income  taxes  in  effect for the year
14    preceding the taxable year.
15        "Life care facility  that  qualifies  as  a  cooperative"
16    means  a  facility  as  defined in Section 2 of the Life Care
17    Facilities Act.
18        "Residence"  means  the  principal  dwelling  place   and
19    appurtenant  structures used for residential purposes in this
20    State occupied  on  January  1  of  the  taxable  year  by  a
21    household  and  so much of the surrounding land, constituting
22    the parcel upon which the dwelling place is situated,  as  is
23    used for residential purposes. If the Chief County Assessment
24    Officer  has  established  a specific legal description for a
25    portion of property constituting  the  residence,  then  that
26    portion  of  property  shall  be deemed the residence for the
27    purposes of this Section.
28        "Taxable year" means the calendar year  during  which  ad
29    valorem  property  taxes  payable in the next succeeding year
30    are levied.
31        (c)  Beginning in taxable year 1994,  a  senior  citizens
32    assessment  freeze  homestead  exemption  is granted for real
33    property that is improved with a permanent structure that  is
34    occupied  as  a residence by an applicant who (i) is 65 years
HB1269 Enrolled            -79-                LRB9001000EGfg
 1    of age or older during the taxable year, (ii) has a household
 2    income of $35,000 or less, (iii) is liable  for  paying  real
 3    property  taxes  on  the  property,  and  (iv) is an owner of
 4    record of the property or has a legal or  equitable  interest
 5    in  the  property  as evidenced by a written instrument. This
 6    homestead exemption shall also apply to a leasehold  interest
 7    in  a  parcel of property improved with a permanent structure
 8    that is a single family  residence  that  is  occupied  as  a
 9    residence  by  a  person  who (i) is 65 years of age or older
10    during the taxable year,  (ii)  has  a  household  income  of
11    $35,000  or  less,  (iii)  has a legal or equitable ownership
12    interest in the property as lessee, and (iv)  is  liable  for
13    the payment of real property taxes on that property.
14        The  amount  of  this  exemption  shall  be the equalized
15    assessed value of the residence in the taxable year for which
16    application is made minus the base amount.
17        When the applicant is a surviving spouse of an  applicant
18    for  a  prior  year  for  the  same  residence  for  which an
19    exemption under this Section has been granted, the base  year
20    and  base  amount  for that residence are the same as for the
21    applicant for the prior year.
22        Each year at the time the assessment books are  certified
23    to  the County Clerk, the Board of Review or Board of Appeals
24    shall give to the County Clerk a list of the assessed  values
25    of  improvements on each parcel qualifying for this exemption
26    that were added after the base year for this parcel and  that
27    increased the assessed value of the property.
28        In  the  case of land improved with an apartment building
29    owned and operated as a cooperative or a building that  is  a
30    life  care  facility  that  qualifies  as  a cooperative, the
31    maximum reduction from the equalized assessed  value  of  the
32    property  is  limited to the sum of the reductions calculated
33    for each unit occupied as a residence by a person or  persons
34    65  years  of age or older with a household income of $35,000
HB1269 Enrolled            -80-                LRB9001000EGfg
 1    or less who is liable, by contract with the owner  or  owners
 2    of record, for paying real property taxes on the property and
 3    who is an owner of record of a legal or equitable interest in
 4    the  cooperative  apartment  building, other than a leasehold
 5    interest. In the instance of a cooperative where a  homestead
 6    exemption   has   been   granted   under  this  Section,  the
 7    cooperative association or its management firm  shall  credit
 8    the  savings  resulting  from  that  exemption  only  to  the
 9    apportioned  tax liability of the owner who qualified for the
10    exemption.  Any person who willfully refuses to  credit  that
11    savings to an owner who qualifies for the exemption is guilty
12    of a Class B misdemeanor.
13        When  a  homestead  exemption has been granted under this
14    Section and  an  applicant  then  becomes  a  resident  of  a
15    facility  licensed  under  the  Nursing  Home  Care  Act, the
16    exemption shall be granted in subsequent years so long as the
17    residence (i) continues  to  be  occupied  by  the  qualified
18    applicant's  spouse or (ii) if remaining unoccupied, is still
19    owned by the qualified applicant for the homestead exemption.
20        Beginning January 1, 1997, when an  individual  dies  who
21    would have qualified for an exemption under this Section, and
22    the  surviving spouse does not independently qualify for this
23    exemption because of age, the exemption  under  this  Section
24    shall be granted to the surviving spouse for the taxable year
25    preceding  and  the taxable year of the death, provided that,
26    except  for  age,  the  surviving  spouse  meets  all   other
27    qualifications  for  the granting of this exemption for those
28    years.
29        When married persons maintain  separate  residences,  the
30    exemption provided for in this Section may be claimed by only
31    one of such persons and for only one residence.
32        For  taxable year 1994 only, in counties having less than
33    3,000,000 inhabitants, to receive  the  exemption,  a  person
34    shall submit an application by February 15, 1995 to the Chief
HB1269 Enrolled            -81-                LRB9001000EGfg
 1    County Assessment Officer of the county in which the property
 2    is   located.    In   counties   having   3,000,000  or  more
 3    inhabitants, for taxable year 1994 and all subsequent taxable
 4    years, to receive the  exemption,  a  person  may  submit  an
 5    application  to  the  Chief  County Assessment Officer of the
 6    county in which the property is located during such period as
 7    may be specified by the Chief County Assessment Officer.  The
 8    Chief County Assessment Officer in counties of  3,000,000  or
 9    more   inhabitants   shall   annually   give  notice  of  the
10    application period by mail or by  publication.   In  counties
11    having   less  than  3,000,000  inhabitants,  beginning  with
12    taxable year 1995 and thereafter, to receive the exemption, a
13    person shall submit an application by July 1 of each  taxable
14    year  to the Chief County Assessment Officer of the county in
15    which the property is located.  A county may,  by  ordinance,
16    establish  a  date  for  submission  of  applications that is
17    earlier than July 1, but in no event shall a county establish
18    a date for submission of applications that is later than July
19    1.  The  applicant  shall  submit  with  the  application  an
20    affidavit  of  the  applicant's  total household income, age,
21    marital status (and if married the name and  address  of  the
22    applicant's  spouse,  if known), and principal dwelling place
23    of members of the household on January 1 of the taxable year.
24    The  Department  shall  establish,  by  rule,  a  method  for
25    verifying the accuracy  of  affidavits  filed  by  applicants
26    under  this Section. The applications shall be clearly marked
27    as applications for the  Senior  Citizens  Assessment  Freeze
28    Homestead Exemption.
29        In counties having less than 3,000,000 inhabitants, if an
30    applicant  was  denied  an exemption in taxable year 1994 and
31    the denial occurred due  to  an  error  on  the  part  of  an
32    assessment  official,  or  his or her agent or employee, then
33    beginning in taxable year 1997 the applicant's base year, for
34    purposes of determining the amount of the exemption, shall be
HB1269 Enrolled            -82-                LRB9001000EGfg
 1    1993 rather than 1994. In addition, in taxable year 1997, the
 2    applicant's exemption shall also include an amount  equal  to
 3    (i)  the  amount  of any exemption denied to the applicant in
 4    taxable year 1995 as a result  of  using  1994,  rather  than
 5    1993,  as  the  base  year,  (ii) the amount of any exemption
 6    denied to the applicant in taxable year 1996 as a  result  of
 7    using 1994, rather than 1993, as the base year, and (iii) the
 8    amount  of  the exemption erroneously denied for taxable year
 9    1994.
10        For purposes of this Section, a person  who  will  be  65
11    years  of  age  during  the  current  taxable  year  shall be
12    eligible to apply for the  homestead  exemption  during  that
13    taxable   year.    Application   shall  be  made  during  the
14    application period in effect for the county  of  his  or  her
15    residence.
16        The  Chief  County  Assessment  Officer may determine the
17    eligibility of a life  care  facility  that  qualifies  as  a
18    cooperative  to receive the benefits provided by this Section
19    by use  of  an  affidavit,  application,  visual  inspection,
20    questionnaire,  or other reasonable method in order to insure
21    that  the  tax  savings  resulting  from  the  exemption  are
22    credited by  the  management  firm  to  the  apportioned  tax
23    liability  of  each  qualifying  resident.   The Chief County
24    Assessment Officer may  request  reasonable  proof  that  the
25    management firm has so credited that exemption.
26        Except  as  provided  in  this  Section,  all information
27    received by  the  chief  county  assessment  officer  or  the
28    Department  from  applications  filed  under this Section, or
29    from any investigation conducted under the provisions of this
30    Section, shall be confidential, except for official  purposes
31    or  pursuant  to  official  procedures  for collection of any
32    State or local tax or enforcement of any  civil  or  criminal
33    penalty  or sanction imposed by this Act or by any statute or
34    ordinance imposing a State  or  local  tax.  Any  person  who
HB1269 Enrolled            -83-                LRB9001000EGfg
 1    divulges  any  such  information  in  any  manner,  except in
 2    accordance with a proper judicial order, is guilty of a Class
 3    A misdemeanor.
 4        Nothing contained  in  this  Section  shall  prevent  the
 5    Director  or  chief county assessment officer from publishing
 6    or making  available  reasonable  statistics  concerning  the
 7    operation of the exemption contained in this Section in which
 8    the  contents of claims are grouped into aggregates in such a
 9    way that information contained in any individual claim  shall
10    not be disclosed.
11    (Source:  P.A.  88-669,  eff. 11-29-94; 88-682, eff. 1-13-95;
12    89-62, eff. 1-1-96; 89-426, eff. 6-1-96; 89-557, eff. 1-1-97;
13    89-581, eff. 1-1-97; 89-626, eff. 8-9-96; revised 9-3-96.)
14        (35 ILCS 200/15-180)
15        Sec.   15-180.    Homestead   improvements.     Homestead
16    properties that have been improved and residential structures
17    on  homestead  property  that  have  been rebuilt following a
18    catastrophic event are entitled to  a  homestead  improvement
19    exemption,  limited  to  $30,000 per year in fair cash value,
20    when that property  is  owned  and  used  exclusively  for  a
21    residential  purpose  and  upon demonstration that a proposed
22    increase in assessed value is attributable solely  to  a  new
23    improvement  of  an existing structure or the rebuilding of a
24    residential structure following a catastrophic event.  To  be
25    eligible   for  an  exemption  under  this  Section  after  a
26    catastrophic event, the residential structure must be rebuilt
27    within 2 years after the catastrophic  event.  The  exemption
28    for  rebuilt  structures  under  this  Section applies to the
29    increase in value of the rebuilt structure over the value  of
30    the  structure  before the catastrophic event.  The amount of
31    the exemption shall be limited to the fair cash  value  added
32    by the new improvement or rebuilding and shall continue for 4
33    years   from  the  date  the  improvement  or  rebuilding  is
HB1269 Enrolled            -84-                LRB9001000EGfg
 1    completed and occupied, or until the next  following  general
 2    assessment of that property, whichever is later.
 3        A proclamation of disaster by the President of the United
 4    States  or  Governor  of  the  State  of  Illinois  is  not a
 5    prerequisite to the classification  of  an  occurrence  as  a
 6    catastrophic  event  under  this  Section.   A  "catastrophic
 7    event"  may  include  an  occurrence  of widespread or severe
 8    damage or loss of property resulting  from  any  catastrophic
 9    cause  including  but  not  limited  to fire, including arson
10    (provided the fire was not caused by the willful action of an
11    owner or resident of the property), flood, earthquake,  wind,
12    storm,  explosion,  or  extended  periods of severe inclement
13    weather.  In the case of a residential structure affected  by
14    flooding,  the  structure  shall  not  be  eligible  for this
15    homestead improvement exemption unless it is located within a
16    local jurisdiction which is  participating  in  the  National
17    Flood Insurance Program.
18        In  counties  of  less  than  3,000,000  inhabitants,  in
19    addition  to  the  notice  requirement under Section 12-30, a
20    supervisor of assessments, county assessor,  or  township  or
21    multi-township  assessor responsible for adding an assessable
22    improvement to  a  residential  property's  assessment  shall
23    either  notify  a  taxpayer whose assessment has been changed
24    since the last preceding assessment that he  or  she  may  be
25    eligible  for  the  exemption  provided under this Section or
26    shall grant the exemption automatically.
27    (Source: P.A.  88-455;  89-595,  eff.  1-1-97;  89-690,  eff.
28    6-1-97; revised 1-15-97)
29        (35 ILCS 200/18-183)
30        Sec. 18-183.  Cancellation and repayment of tax benefits.
31    Beginning  with  tax year 1996, if any taxing district enters
32    into an agreement that explicitly sets forth  the  terms  and
33    length  of  a  contract and thereby grants a tax abatement or
HB1269 Enrolled            -85-                LRB9001000EGfg
 1    other tax benefit under Sections  18-165  through  18-180  of
 2    this  Code, under the Economic Development Area Tax Increment
 3    Allocation Act, the County Economic Development Project  Area
 4    Tax  Increment  Allocation  Act  of  1991,  the Tax Increment
 5    Allocation Redevelopment Act, the  Industrial  Jobs  Recovery
 6    Law,  the  Economic  Development  Project  Area Tax Increment
 7    Allocation Act of 1995,  or  under  any  other  statutory  or
 8    constitutional  authority  implemented under the Property Tax
 9    Code to a private individual or entity  for  the  purpose  of
10    originating,   locating,   maintaining,   rehabilitating,  or
11    expanding a business facility within the taxing district  and
12    the  individual  or entity relocates the entire facility from
13    the taxing district in violation of the terms and  length  of
14    the  contract  explicitly  set  forth  in  the agreement, the
15    abatement or other tax benefit for the remainder of the  term
16    is  cancelled  and  the amount of the abatements or other tax
17    benefits granted before cancellation shall be repaid  to  the
18    taxing  district  within 30 days.  This Section may be waived
19    by the mutual agreement of the individual or entity  and  the
20    taxing district.
21    (Source: P.A. 89-591, eff. 8-1-96; revised 8-15-96.)
22        (35 ILCS 200/18-184)
23        Sec.  18-184.  18-183.   Abatement; annexation agreement.
24    Upon  a  majority  vote  of  its  governing  authority,   any
25    municipality  may,  after  the  determination of the assessed
26    valuation of its property, order the county  clerk  to  abate
27    any  portion of its taxes on any property that is the subject
28    of an annexation agreement between the municipality  and  the
29    property owner.
30    (Source: P.A. 89-537, eff. 1-1-97; revised 8-15-96.)
31        Section  2-100.   The Illinois Pension Code is amended by
32    changing Section 16-106 as follows:
HB1269 Enrolled            -86-                LRB9001000EGfg
 1        (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
 2        Sec.   16-106.  Teacher.    "Teacher":   The    following
 3    individuals,  provided  that, for employment prior to July 1,
 4    1990, they are employed on  a  full-time  basis,  or  if  not
 5    full-time,  on a permanent and continuous basis in a position
 6    in which services are expected to be rendered  for  at  least
 7    one school term:
 8             (1)  Any  educational,  administrative, professional
 9        or other staff employed  in  the  public  common  schools
10        included  within  this  system  in  a  position requiring
11        certification under the law governing  the  certification
12        of teachers;
13             (2)  Any  educational,  administrative, professional
14        or other staff employed in any facility of the Department
15        of Children and Family  Services  or  the  Department  of
16        Human  Services,  in  a  position requiring certification
17        under the law governing the  certification  of  teachers,
18        and  any  person who (i) works in such a position for the
19        Department of Corrections, (ii)  was  a  member  of  this
20        System on May 31, 1987, and (iii) did not elect to become
21        a  member  of  the  State  Employees'  Retirement  System
22        pursuant to Section 14-108.2 of this Code;
23             (3)  Any   regional   superintendent   of   schools,
24        assistant   regional  superintendent  of  schools,  State
25        Superintendent of Education; any person employed  by  the
26        State  Board  of Education as an executive; any executive
27        of the boards engaged in the  service  of  public  common
28        school  education  in school districts covered under this
29        system of which the State Superintendent of Education  is
30        an ex-officio member;
31             (4)  Any  employee  of  a  school  board association
32        operating in compliance with Article  23  of  the  School
33        Code  who  is  certificated  under  the law governing the
34        certification of teachers;
HB1269 Enrolled            -87-                LRB9001000EGfg
 1             (5)  Any person employed by the retirement system as
 2        an executive, and any person employed by  the  retirement
 3        system  who  is  certificated under the law governing the
 4        certification of teachers;
 5             (6)  Any educational,  administrative,  professional
 6        or  other staff employed by and under the supervision and
 7        control of a regional superintendent of schools, provided
 8        such  employment  position  requires  the  person  to  be
 9        certificated under the law governing the certification of
10        teachers and is in an educational program  serving  2  or
11        more  districts  in  accordance  with  a  joint agreement
12        authorized by the School Code or by federal legislation;
13             (7)  Any educational,  administrative,  professional
14        or  other  staff  employed  in   an  educational  program
15        serving  2  or more school districts in accordance with a
16        joint agreement authorized  by  the  School  Code  or  by
17        federal   legislation   and   in   a  position  requiring
18        certification under the laws governing the  certification
19        of teachers;
20             (8)  Any  officer or employee of a statewide teacher
21        organization who is certified  under  the  law  governing
22        certification  of  teachers, provided: (i) the individual
23        had previously established creditable service under  this
24        Article, (ii) the individual files with the system, on or
25        before January 1, 1990, an irrevocable election to become
26        a  member,  and  (iii)  the  individual  does not receive
27        credit for such service under any other Article  of  this
28        Code;
29             (9)  Any  educational, administrative, professional,
30        or other staff employed in a charter school operating  in
31        compliance   with   the   Charter   Schools  Law  who  is
32        certificated under the law governing the certification of
33        teachers.
34        An annuitant receiving a retirement  annuity  under  this
HB1269 Enrolled            -88-                LRB9001000EGfg
 1    Article  or  under Article 17 of this Code who is temporarily
 2    employed by a  board  of  education  or  other  employer  not
 3    exceeding  that  permitted  under  Section  16-118  is  not a
 4    "teacher" for purposes of this Article.   A  person  who  has
 5    received   a  single-sum  retirement  benefit  under  Section
 6    16-136.4 of this Article is not a "teacher" for  purposes  of
 7    this Article.
 8    (Source: P.A.  89-450,  eff.  4-10-96;  89-507,  eff. 7-1-97;
 9    revised 10-3-96.)
10        Section 2-105.  The Counties Code is amended  by  setting
11    forth,   changing,   and  renumbering  multiple  versions  of
12    Sections 5-1069.5 and 5-1121 as follows:
13        (55 ILCS 5/5-1069.2)
14        Sec. 5-1069.2. 5-1069.5.   Post-parturition  care.  If  a
15    county,  including  a home rule county, is a self-insurer for
16    purposes of  providing  health  insurance  coverage  for  its
17    employees,  the  coverage  shall  include  coverage  for  the
18    post-parturition  care  benefits  required to be covered by a
19    policy of accident and health insurance  under  Section  356s
20    356r  of  the  Illinois Insurance Code.  The requirement that
21    post-parturition care be covered as provided in this  Section
22    is  an  exclusive  power  and  function of the State and is a
23    denial  and  limitation  under  Article   VII,   Section   6,
24    subsection  (h)  of  the  Illinois Constitution.  A home rule
25    county to which this Section applies must comply  with  every
26    provision of this Section.
27    (Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)
28        (55 ILCS 5/5-1069.5)
29        Sec.   5-1069.5.  Woman's   health  care  provider.   All
30    counties, including home rule counties, are  subject  to  the
31    provisions  of  Section  356r of the Illinois Insurance Code.
HB1269 Enrolled            -89-                LRB9001000EGfg
 1    The requirement under this Section that health care  benefits
 2    provided by counties comply with Section 356r of the Illinois
 3    Insurance  Code  is  an  exclusive  power and function of the
 4    State and is a denial and  limitation  of  home  rule  county
 5    powers  under  Article  VII, Section 6, subsection (h) of the
 6    Illinois Constitution.
 7    (Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)
 8        (55 ILCS 5/5-1121)
 9        Sec. 5-1121.  Demolition, repair, or enclosure.
10        (a)  The  county  board  of  each  county  may  demolish,
11    repair, or  enclose  or  cause  the  demolition,  repair,  or
12    enclosure  of  dangerous  and unsafe buildings or uncompleted
13    and abandoned buildings within the territory of  the  county,
14    but  not  within  the  territory of any municipality, and may
15    remove or cause the removal of  garbage,  debris,  and  other
16    hazardous, noxious, or unhealthy substances or materials from
17    those buildings.
18        The  county board shall apply to the circuit court of the
19    county in which the building is  located  (i)  for  an  order
20    authorizing  action to be taken with respect to a building if
21    the owner or owners  of  the  building,  including  the  lien
22    holders  of record, after at least 15 days' written notice by
23    mail to do so, have failed to put  the  building  in  a  safe
24    condition  or  to  demolish it or (ii) for an order requiring
25    the owner or owners of record to demolish, repair, or enclose
26    the  building  or  to  remove  garbage,  debris,  and   other
27    hazardous, noxious, or unhealthy substances or materials from
28    the  building.   It  is  not a defense to the cause of action
29    that the  building  is  boarded  up  or  otherwise  enclosed,
30    although  the  court  may  order  the  defendant  to have the
31    building  boarded  up  or  otherwise  enclosed.  Where,  upon
32    diligent search, the identity or whereabouts of the owner  or
33    owners of the building, including the lien holders of record,
HB1269 Enrolled            -90-                LRB9001000EGfg
 1    is  not ascertainable, notice mailed to the person or persons
 2    in whose name the real estate was last assessed is sufficient
 3    notice under this Section.
 4        The hearing upon the application  to  the  circuit  court
 5    shall be expedited by the court and shall be given precedence
 6    over all other suits.
 7        The cost of the demolition, repair, enclosure, or removal
 8    incurred by the county, by an intervenor, or by a lien holder
 9    of  record, including court costs, attorney's fees, and other
10    costs  related  to  the  enforcement  of  this  Section,   is
11    recoverable  from  the  owner or owners of the real estate or
12    the previous owner or both if the  property  was  transferred
13    during  the  15  day  notice period and is a lien on the real
14    estate; the lien is superior to all prior existing liens  and
15    encumbrances,  except  taxes,  if,  within 180 days after the
16    repair, demolition, enclosure, or removal,  the  county,  the
17    lien  holder  of  record,  or the intervenor who incurred the
18    cost and expense shall file a notice of lien for the cost and
19    expense incurred in the office of the recorder in the  county
20    in  which  the real estate is located or in the office of the
21    registrar of titles of the county if the real estate affected
22    is registered under the Registered Titles (Torrens) Act.
23        The notice must consist of a sworn statement setting  out
24    (1)  a  description  of  the  real  estate sufficient for its
25    identification, (2) the amount of money representing the cost
26    and expense incurred, and (3) the date or dates when the cost
27    and expense was incurred by the county, the  lien  holder  of
28    record,  or  the  intervenor.  Upon  payment  of the cost and
29    expense by the owner of or persons interested in the property
30    after the notice of lien has been filed, the  lien  shall  be
31    released by the county, the person in whose name the lien has
32    been  filed, or the assignee of the lien, and the release may
33    be filed of record as in the case of filing notice  of  lien.
34    Unless  the  lien  is enforced under subsection (b), the lien
HB1269 Enrolled            -91-                LRB9001000EGfg
 1    may be enforced by foreclosure proceedings as in the case  of
 2    mortgage  foreclosures  under Article XV of the Code of Civil
 3    Procedure or  mechanics'  lien  foreclosures.  An  action  to
 4    foreclose  this  lien  may be commenced at any time after the
 5    date  of  filing  of  the  notice  of  lien.   The  costs  of
 6    foreclosure incurred by the county,  including  court  costs,
 7    reasonable   attorney's   fees,   advances  to  preserve  the
 8    property, and other costs related to the enforcement of  this
 9    subsection,  plus  statutory interest, are a lien on the real
10    estate and are recoverable by the county from  the  owner  or
11    owners of the real estate.
12        All  liens  arising  under  this  subsection (a) shall be
13    assignable. The assignee of the  lien  shall  have  the  same
14    power to enforce the lien as the assigning party, except that
15    the lien may not be enforced under subsection (b).
16        If the appropriate official of any county determines that
17    any   dangerous   and  unsafe  building  or  uncompleted  and
18    abandoned  building  within  its   territory   fulfills   the
19    requirements  for an action by the county under the Abandoned
20    Housing Rehabilitation Act, the  county  may  petition  under
21    that Act in a proceeding brought under this subsection.
22        (b)  In any case where a county has obtained a lien under
23    subsection  (a),  the  county may enforce the lien under this
24    subsection (b) in the same proceeding in which  the  lien  is
25    authorized.
26        A county desiring to enforce a lien under this subsection
27    (b)  shall  petition  the  court  to  retain jurisdiction for
28    foreclosure proceedings under this subsection.  Notice of the
29    petition shall be served, by certified or registered mail, on
30    all persons who were served notice under subsection (a).  The
31    court shall conduct a hearing on the petition not  less  than
32    15  days after the notice is served.  If the court determines
33    that the  requirements  of  this  subsection  (b)  have  been
34    satisfied,   it   shall   grant   the   petition  and  retain
HB1269 Enrolled            -92-                LRB9001000EGfg
 1    jurisdiction over the matter until the foreclosure proceeding
 2    is completed.  The  costs  of  foreclosure  incurred  by  the
 3    county,  including  court  costs, reasonable attorneys' fees,
 4    advances to preserve the property, and other costs related to
 5    the enforcement of this subsection, plus statutory  interest,
 6    are  a  lien  on  the  real estate and are recoverable by the
 7    county from the owner or owners of the real estate.   If  the
 8    court denies the petition, the county may enforce the lien in
 9    a separate action as provided in subsection (a).
10        All  persons designated in Section 15-1501 of the Code of
11    Civil  Procedure  as  necessary   parties   in   a   mortgage
12    foreclosure action shall be joined as parties before issuance
13    of  an  order  of foreclosure.  Persons designated in Section
14    15-1501 of the Code of Civil Procedure as permissible parties
15    may also be joined as parties in the action.
16        The provisions  of  Article  XV  of  the  Code  of  Civil
17    Procedure  applicable to mortgage foreclosures shall apply to
18    the foreclosure of a lien under this subsection  (b),  except
19    to  the  extent  that  those provisions are inconsistent with
20    this subsection.   For  purposes  of  foreclosures  of  liens
21    under   this   subsection,  however,  the  redemption  period
22    described in subsection (b) of Section 15-1603 of the Code of
23    Civil Procedure shall end 60 days after the date of entry  of
24    the order of foreclosure.
25        (c)  In addition to any other remedy provided by law, the
26    county  board of any county may petition the circuit court to
27    have property declared abandoned under  this  subsection  (c)
28    if:
29             (1)  the  property  has been tax delinquent for 2 or
30        more years or bills for water service  for  the  property
31        have been outstanding for 2 or more years;
32             (2)  the  property  is unoccupied by persons legally
33        in possession; and
34             (3)  the property contains  a  dangerous  or  unsafe
HB1269 Enrolled            -93-                LRB9001000EGfg
 1        building.
 2        All persons having an interest of record in the property,
 3    including   tax  purchasers  and  beneficial  owners  of  any
 4    Illinois land trust having title to the  property,  shall  be
 5    named  as defendants in the petition and shall be served with
 6    process.  In addition, service shall  be  had  under  Section
 7    2-206  of  the  Code  of  Civil  Procedure  as in other cases
 8    affecting property.
 9        The county, however, may proceed under this subsection in
10    a proceeding brought under subsection  (a).   Notice  of  the
11    petition  shall  be served by certified or registered mail on
12    all persons who were served notice under subsection (a).
13        If the county proves that  the  conditions  described  in
14    this subsection exist and the owner of record of the property
15    does  not  enter an appearance in the action, or, if title to
16    the property is held by an Illinois land  trust,  if  neither
17    the  owner of record nor the owner of the beneficial interest
18    of the trust enters an appearance, the  court  shall  declare
19    the property abandoned.
20        If  that  determination  is made, notice shall be sent by
21    certified  or  registered  mail  to  all  persons  having  an
22    interest of record in the property, including tax  purchasers
23    and beneficial owners of any Illinois land trust having title
24    to  the  property, stating that title to the property will be
25    transferred to the county  unless,  within  30  days  of  the
26    notice,  the  owner  of  record  enters  an appearance in the
27    action, or unless any other person having an interest in  the
28    property  files  with  the  court  a  request to demolish the
29    dangerous or unsafe building or to put the building  in  safe
30    condition.
31        If the owner of record enters an appearance in the action
32    within  the  30  day period, the court shall vacate its order
33    declaring the property abandoned.  In that case,  the  county
34    may  amend  its  complaint  in  order to initiate proceedings
HB1269 Enrolled            -94-                LRB9001000EGfg
 1    under subsection (a).
 2        If a request to demolish or repair the building is  filed
 3    within the 30 day period, the court shall grant permission to
 4    the  requesting party to demolish the building within 30 days
 5    or to restore the building to safe condition within  60  days
 6    after  the  request  is granted.  An extension of that period
 7    for up to 60 additional days may be given for good cause.  If
 8    more than one person with an interest in the property files a
 9    timely request, preference shall be given to the person  with
10    the lien or other interest of the highest priority.
11        If  the  requesting  party  proves  to the court that the
12    building has been demolished  or  put  in  a  safe  condition
13    within  the  period  of  time granted by the court, the court
14    shall issue a quitclaim judicial deed for the property to the
15    requesting party, conveying only the interest of the owner of
16    record, upon proof of payment to  the  county  of  all  costs
17    incurred  by  the  county  in  connection  with  the  action,
18    including  but  not  limited to court costs, attorney's fees,
19    administrative costs, the  costs,  if  any,  associated  with
20    building  enclosure  or removal, and receiver's certificates.
21    The interest in the property so conveyed shall be subject  to
22    all  liens and encumbrances on the property.  In addition, if
23    the interest is conveyed to a person holding a certificate of
24    purchase for the property under the Property  Tax  Code,  the
25    conveyance  shall  be  subject to the rights of redemption of
26    all persons entitled to redeem under that Act, including  the
27    original owner of record.
28        If  no  person  with  an interest in the property files a
29    timely request or if the requesting party fails  to  demolish
30    the building or put the building in safe condition within the
31    time  specified  by  the  court,  the county may petition the
32    court to issue a  judicial  deed  for  the  property  to  the
33    county.   A  conveyance  by  judicial  deed  shall operate to
34    extinguish all existing ownership interests in, liens on, and
HB1269 Enrolled            -95-                LRB9001000EGfg
 1    other interest in the property, including tax liens.
 2        (d)  Each  county  may  use  the   provisions   of   this
 3    subsection  to expedite the removal of certain buildings that
 4    are a continuing hazard to the community in  which  they  are
 5    located.
 6        If  a residential building is 2 stories or less in height
 7    as defined by the county's building code,  and  the  official
 8    designated to be in charge of enforcing the county's building
 9    code  determines  that the building is open and vacant and an
10    immediate and continuing hazard to the community in which the
11    building is located, then the official shall be authorized to
12    post a notice not less than 2 feet by 2 feet in size  on  the
13    front  of  the building.  The notice shall be dated as of the
14    date of the posting and shall state that unless the  building
15    is demolished, repaired, or enclosed, and unless any garbage,
16    debris, and other hazardous, noxious, or unhealthy substances
17    or  materials are removed so that an immediate and continuing
18    hazard to the community no longer exists, then  the  building
19    may  be  demolished,  repaired,  or enclosed, or any garbage,
20    debris, and other hazardous, noxious, or unhealthy substances
21    or materials may be removed, by the county.
22        Not later than 30  days  following  the  posting  of  the
23    notice, the county shall do both of the following:
24             (1)  Cause  to  be  sent,  by certified mail, return
25        receipt requested, a notice to all owners  of  record  of
26        the  property, the beneficial owners of any Illinois land
27        trust having title to the property, and  all  lienholders
28        of  record  in  the  property,  stating the intent of the
29        county to demolish, repair, or enclose  the  building  or
30        remove  any garbage, debris, or other hazardous, noxious,
31        or unhealthy substances or materials if  that  action  is
32        not taken by the owner or owners.
33             (2)  Cause to be published, in a newspaper published
34        or  circulated  in  the  county  where  the  building  is
HB1269 Enrolled            -96-                LRB9001000EGfg
 1        located,  a  notice  setting  forth (i) the permanent tax
 2        index number and the address  of  the  building,  (ii)  a
 3        statement  that  the  property  is  open  and  vacant and
 4        constitutes an immediate and  continuing  hazard  to  the
 5        community,  and (iii) a statement that the county intends
 6        to demolish, repair, or enclose the  building  or  remove
 7        any  garbage,  debris,  or  other  hazardous, noxious, or
 8        unhealthy substances or materials if the owner or  owners
 9        or  lienholders  of  record  fail  to do so.  This notice
10        shall be published for 3 consecutive days.
11        A person objecting to the proposed actions of the  county
12    board may file his or her objection in an appropriate form in
13    a court of competent jurisdiction.
14        If the building is not demolished, repaired, or enclosed,
15    or  the  garbage,  debris,  or  other  hazardous, noxious, or
16    unhealthy substances or materials are not removed, within  30
17    days  of  mailing  the  notice  to  the owners of record, the
18    beneficial owners of any Illinois land trust having title  to
19    the  property, and all lienholders of record in the property,
20    or within 30 days of the  last  day  of  publication  of  the
21    notice,  whichever  is later, the county board shall have the
22    power to demolish, repair, or  enclose  the  building  or  to
23    remove  any  garbage, debris, or other hazardous, noxious, or
24    unhealthy substances or materials.
25        The county may proceed to demolish, repair, or enclose  a
26    building  or  remove any garbage, debris, or other hazardous,
27    noxious, or unhealthy  substances  or  materials  under  this
28    subsection  within a 120-day period following the date of the
29    mailing of the notice if the appropriate official  determines
30    that  the  demolition,  repair,  enclosure, or removal of any
31    garbage, debris, or other hazardous,  noxious,  or  unhealthy
32    substances  or materials is necessary to remedy the immediate
33    and  continuing  hazard.   If,  however,  before  the  county
34    proceeds  with  any  of  the  actions  authorized   by   this
HB1269 Enrolled            -97-                LRB9001000EGfg
 1    subsection,  any  person  has  sought  a  hearing  under this
 2    subsection before a court  and  has  served  a  copy  of  the
 3    complaint  on the chief executive officer of the county, then
 4    the county shall not proceed  with  the  demolition,  repair,
 5    enclosure, or removal of garbage, debris, or other substances
 6    until  the  court determines that that action is necessary to
 7    remedy the hazard and issues an order authorizing the  county
 8    to do so.
 9        Following  the  demolition,  repair,  or  enclosure  of a
10    building,  or  the  removal  of  garbage,  debris,  or  other
11    hazardous, noxious,  or  unhealthy  substances  or  materials
12    under  this  subsection, the county may file a notice of lien
13    against the real estate  for  the  cost  of  the  demolition,
14    repair,  enclosure,  or  removal  within  180  days after the
15    repair, demolition, enclosure, or removal occurred,  for  the
16    cost  and  expense incurred, in the office of the recorder in
17    the county in which the real estate  is  located  or  in  the
18    office  of  the registrar of titles of the county if the real
19    estate affected is registered  under  the  Registered  Titles
20    (Torrens)  Act.   The notice of lien shall consist of a sworn
21    statement setting forth (i) a description of the real estate,
22    such as the address or other  description  of  the  property,
23    sufficient for its identification; (ii) the expenses incurred
24    by  the county in undertaking the remedial actions authorized
25    under this subsection; (iii) the date or dates  the  expenses
26    were incurred by the county; (iv) a statement by the official
27    responsible for enforcing the building code that the building
28    was   open  and  vacant  and  constituted  an  immediate  and
29    continuing hazard to the community; (v) a  statement  by  the
30    official  that  the required sign was posted on the building,
31    that notice was sent by  certified  mail  to  the  owners  of
32    record, and that notice was published in accordance with this
33    subsection;  and  (vi)  a  statement as to when and where the
34    notice was published.  The lien authorized by this subsection
HB1269 Enrolled            -98-                LRB9001000EGfg
 1    may thereafter be released  or  enforced  by  the  county  as
 2    provided in subsection (a).
 3    (Source: P.A. 89-585, eff. 1-1-97; revised 8-15-96.)
 4        (55 ILCS 5/5-1123)
 5        Sec. 5-1123. 5-1121.  Builder or developer cash bond.
 6        (a)  A  county may not require a cash bond from a builder
 7    or developer to guarantee completion of a project improvement
 8    when  the  builder  or  developer  has   filed   a   current,
 9    irrevocable   letter  of  credit  with  good  and  sufficient
10    sureties with the county clerk  in  an  amount  equal  to  or
11    greater  than  110%  of the amount of the bid on each project
12    improvement.  A builder or developer may elect to utilize  an
13    irrevocable  letter  of  credit  to  satisfy  any  cash  bond
14    requirement established by a county.
15        (b)  If  a  county receives a cash bond from a builder or
16    developer to guarantee completion of a  project  improvement,
17    the  county  shall (i) register the bond under the address of
18    the project and the construction permit number and (ii)  give
19    the  builder or developer a receipt for the bond.  The county
20    shall establish and maintain a separate account for all  cash
21    bonds  received  from  builders  and  developers to guarantee
22    completion of a project improvement.
23        (c)  The county shall refund a cash bond to a builder  or
24    developer  within  60  days  after  the  builder or developer
25    notifies the county in  writing  of  the  completion  of  the
26    project  improvement  for  which  the  bond was required. For
27    these  purposes,  "completion"  means  that  the  county  has
28    determined that the project improvement for  which  the  bond
29    was  required  is complete or a licensed engineer or licensed
30    architect has certified to the builder or developer  and  the
31    county that the project improvement has been completed to the
32    applicable   codes  and  ordinances.  The  county  shall  pay
33    interest to the builder or developer, beginning 60 days after
HB1269 Enrolled            -99-                LRB9001000EGfg
 1    the builder or developer notifies the county  in  writing  of
 2    the  completion  of  the project improvement, on any bond not
 3    refunded to a builder or developer, at the  rate  of  1%  per
 4    month.
 5        (d)  A  home rule county may not require or maintain cash
 6    bonds from builders or developers in  a  manner  inconsistent
 7    with  this  Section.  This Section is a denial and limitation
 8    under subsection (i) of Section  6  of  Article  VII  of  the
 9    Illinois  Constitution  on  the concurrent exercise by a home
10    rule county of powers and functions exercised by the State.
11    (Source: P.A. 89-518, eff. 1-1-97; revised 8-15-96.)
12        Section  2-110.   The  County  Care  for   Persons   with
13    Developmental Disabilities Act is amended by changing Section
14    13 as follows:
15        (55 ILCS 105/13) (from Ch. 91 1/2, par. 213)
16        Sec.  13.  The  Department  of Human Services shall adopt
17    general rules for the guidance of  any  board  of  directors,
18    prescribing   reasonable  standards  in  regard  to  program,
19    facilities and services for residents  with  a  developmental
20    disability.
21        The  provisions  of the Illinois Administrative Procedure
22    Act are hereby expressly  adopted  and  shall  apply  to  all
23    administrative  rules  and procedures of the Department under
24    this Act,  except  that  in  case  of  conflict  between  the
25    Illinois  Administrative  Procedure  Act  and  this  Act  the
26    provisions of this Act shall control, and except that Section
27    5-35 of the Illinois Administrative Procedure Act relating to
28    procedures  for rule-making does not apply to the adoption of
29    any rule required by federal law in connection with which the
30    Department  is  precluded  by   law   from   exercising   any
31    discretion.
32        The   Department  of  Human  Services  may  conduct  such
HB1269 Enrolled            -100-               LRB9001000EGfg
 1    investigation as may be  necessary  to  ascertain  compliance
 2    with rules adopted pursuant to this Act.
 3        If  any such board of directors fails to comply with such
 4    rules,  the  Department  of  Human  Services  shall  withhold
 5    distribution of any State grant in aid  until  such  time  as
 6    such board complies with such rules.
 7    (Source:  P.A.  88-45;  88-380;  88-388; 89-507, eff. 7-1-97;
 8    89-585, eff. 1-1-97; revised 9-9-96.)
 9        Section 2-115.  The Illinois Municipal Code is amended by
10    changing Sections 7-1-1  and  11-15.1-2  and  setting  forth,
11    changing,   and  renumbering  multiple  versions  of  Section
12    10-4-2.5 as follows:
13        (65 ILCS 5/7-1-1) (from Ch. 24, par. 7-1-1)
14        Sec.  7-1-1.  Annexation  of  contiguous  territory.  Any
15    territory that is not within  the  corporate  limits  of  any
16    municipality  but  is  contiguous  to  a  municipality may be
17    annexed to the municipality as provided in this Article.  For
18    the purposes of this Article any territory to be annexed to a
19    municipality shall be considered  to  be  contiguous  to  the
20    municipality  notwithstanding that the territory is separated
21    from  the  municipality  by  a  railroad  or  public  utility
22    right-of-way, but upon annexation the  area  included  within
23    that  right-of-way  shall  not be considered to be annexed to
24    the municipality.
25        Except in counties with a population of more than 500,000
26    but less than 3,000,000, territory which is not contiguous to
27    a municipality but is separated therefrom only  by  a  forest
28    preserve district may be annexed to the municipality pursuant
29    to Sections 7-1-7 or 7-1-8, but the territory included within
30    such  forest  preserve  district  shall not be annexed to the
31    municipality nor shall the territory of the  forest  preserve
32    district  be  subject to rights-of-way for access or services
HB1269 Enrolled            -101-               LRB9001000EGfg
 1    between the parts of the municipality separated by the forest
 2    preserve district without the consent of the  governing  body
 3    of the forest preserve district.
 4        In  counties that are contiguous to the Mississippi River
 5    with populations of more than 200,000 but less than  255,000,
 6    a municipality that is partially located in territory that is
 7    wholly  surrounded  by  the  Mississippi  River  and a canal,
 8    connected at both ends to the Mississippi River  and  located
 9    on  property owned by the United States of America, may annex
10    noncontiguous territory in  the  surrounded  territory  under
11    Sections   7-1-7,  7-1-8,  or  7-1-9  if  that  territory  is
12    separated from the municipality  by  property  owned  by  the
13    United States of America, but that federal property shall not
14    be annexed without the consent of the federal government.
15        When  any land proposed to be annexed is part of any Fire
16    Protection District or of any Public Library District and the
17    annexing municipality provides fire protection  or  a  public
18    library,  as  the  case may be, the Trustees of each District
19    shall be notified in writing by certified or registered  mail
20    before  any  court  hearing  or  other  action  is  taken for
21    annexation.  The notice shall be served 10 days  in  advance.
22    An  affidavit that service of notice has been had as provided
23    by this Section must be filed with the clerk of the court  in
24    which  the  annexation  proceedings  are  pending  or will be
25    instituted or, when no court proceedings are  involved,  with
26    the  recorder  for the county where the land is situated.  No
27    annexation of that land is effective unless  service  is  had
28    and the affidavit filed as provided in this Section.
29        The  new  boundary  shall  extend  to the far side of any
30    adjacent highway and  shall  include  all  of  every  highway
31    within  the area annexed.  These highways shall be considered
32    to  be  annexed  even  though  not  included  in  the   legal
33    description  set  forth in the petition for annexation.  When
34    any land proposed to be annexed includes  any  highway  under
HB1269 Enrolled            -102-               LRB9001000EGfg
 1    the  jurisdiction  of any township, the Township Commissioner
 2    of Highways and the Board of Town Trustees shall be  notified
 3    in  writing  by certified or registered mail before any court
 4    hearing or other action is taken for annexation. In the event
 5    that a municipality fails to notify the Township Commissioner
 6    of Highways and the Board of Town Trustees of the  annexation
 7    of  an  area  within  the  township,  the  municipality shall
 8    reimburse that township for any loss or liability  caused  by
 9    the  failure  to give notice. If any municipality has annexed
10    any area before October 1, 1975, and the legal description in
11    the petition  for  annexation  did  not  include  the  entire
12    adjacent  highway, any such annexation shall be valid and any
13    highway adjacent to the area annexed shall be  considered  to
14    be  annexed  notwithstanding  the  failure of the petition to
15    annex to include  the  description  of  the  entire  adjacent
16    highway.
17        Any   annexation,   disconnection   and   annexation,  or
18    disconnection under this Article of  any  territory  must  be
19    reported  by  certified  or  registered mail by the corporate
20    authority initiating the action to the  election  authorities
21    having  jurisdiction  in  the  territory  and the post office
22    branches  serving  the  territory  within  30  days  of   the
23    annexation, disconnection and annexation, or disconnection.
24        Failure   to   give   notice  to  the  required  election
25    authorities or post office branches will not  invalidate  the
26    annexation  or  disconnection.   For purposes of this Section
27    "election authorities" means the county clerk where the clerk
28    acts as the clerk of elections or the clerk of  the  election
29    commission having jurisdiction.
30        No   annexation,   disconnection   and   annexation,   or
31    disconnection under this Article of territory having electors
32    residing  therein  made (1) before any primary election to be
33    held within the municipality affected thereby and  after  the
34    time  for  filing  petitions as a candidate for nomination to
HB1269 Enrolled            -103-               LRB9001000EGfg
 1    any office to be chosen at the primary election or (2) within
 2    60 days before any general election to  be  held  within  the
 3    municipality  shall be effective until the day after the date
 4    of the primary or general election, as the case may be.
 5        For the purpose  of  this  Section,  a  toll  highway  or
 6    connection between parcels via an overpass bridge over a toll
 7    highway shall not be considered a deterrent to the definition
 8    of contiguous territory.
 9        When  territory  is proposed to be annexed by court order
10    under this Article, the corporate authorities or  petitioners
11    initiating  the action shall notify each person who pays real
12    estate taxes on property within  that  territory  unless  the
13    person  is  a  petitioner.   The  notice  shall  be served by
14    certified or registered mail, return  receipt  requested,  at
15    least  20  days before a court hearing or other court action.
16    If the person who pays real estate taxes on the  property  is
17    not  the  owner  of  record,  then the payor shall notify the
18    owner of record of the proposed annexation.
19    (Source: P.A. 89-388,  eff.  1-1-96;  89-502,  eff.  6-28-96;
20    89-666, eff. 8-14-96; revised 8-19-96.)
21        (65 ILCS 5/10-4-2.2)
22        Sec.  10-4-2.2.  10-4-2.5.   Post-parturition  care. If a
23    municipality,  including  a  home  rule  municipality,  is  a
24    self-insurer  for  purposes  of  providing  health  insurance
25    coverage  for  its  employees,  the  coverage  shall  include
26    coverage for the post-parturition care benefits  required  to
27    be covered by a policy of accident and health insurance under
28    Section  356s  356r  of  the  Illinois  Insurance  Code.  The
29    requirement that post-parturition care be covered as provided
30    in this Section is an exclusive power  and  function  of  the
31    State  and  is  a  denial  and  limitation under Article VII,
32    Section 6, subsection (h) of the  Illinois  Constitution.   A
33    home  rule  municipality  to  which this Section applies must
HB1269 Enrolled            -104-               LRB9001000EGfg
 1    comply with every provision of this Section.
 2    (Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)
 3        (65 ILCS 5/10-4-2.5)
 4        Sec.  10-4-2.5.  Woman's  health   care   provider.   The
 5    corporate  authorities  of  all municipalities are subject to
 6    the provisions of Section  356r  of  the  Illinois  Insurance
 7    Code.   The  requirement  under this Section that health care
 8    benefits provided by municipalities comply with Section  356r
 9    of  the  Illinois  Insurance  Code  is an exclusive power and
10    function of the State and is a denial and limitation of  home
11    rule  municipality  powers  under  Article  VII,  Section  6,
12    subsection (h) of the Illinois Constitution.
13    (Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)
14        (65 ILCS 5/11-15.1-2) (from Ch. 24, par. 11-15.1-2)
15        Sec.  11-15.1-2.  Any  such agreement may provide for the
16    following as it relates to the land which is the  subject  of
17    the agreement:
18        (a)  The    annexation   of   such   territory   to   the
19    municipality, subject to the provisions of Article 7.
20        (b)  The  continuation  in  effect,  or   amendment,   or
21    continuation  in effect as amended, of any ordinance relating
22    to subdivision controls, zoning, official plan, and building,
23    housing and related restrictions; provided, however, that any
24    public hearing required by law to be held before the adoption
25    of any ordinance amendment provided in such  agreement  shall
26    be  held  prior  to  the  execution of the agreement, and all
27    ordinance amendments provided  in  such  agreement  shall  be
28    enacted according to law.
29        (c)  A  limitation upon increases in permit fees required
30    by the municipality.
31        (d)  Contributions of either land or monies, or both,  to
32    any  municipality  and  to  other  units  of local government
HB1269 Enrolled            -105-               LRB9001000EGfg
 1    having jurisdiction over all or part of  land   that  is  the
 2    subject matter of any annexation agreement entered into under
 3    the  provisions  of  this  Section shall be deemed valid when
 4    made and shall  survive  the  expiration  date  of  any  such
 5    annexation  agreement  with respect to all or any part of the
 6    land that was the subject matter of the annexation agreement.
 7        (e)  The granting of utility franchises for such land.
 8        (e-5)  The abatement of property taxes.
 9        (f)  Any  other  matter   not   inconsistent   with   the
10    provisions of this Code, nor forbidden by law.
11        Any  action taken by the corporate authorities during the
12    period such agreement is in effect, which, if it  applied  to
13    the  land  which  is the subject of the agreement, would be a
14    breach of such  agreement,  shall  not  apply  to  such  land
15    without an amendment of such agreement.
16        After  the effective term of any annexation agreement and
17    unless otherwise provided for within the annexation agreement
18    or an amendment to the annexation agreement,  the  provisions
19    of  any  ordinance relating to the zoning of the land that is
20    provided for within the agreement  or  an  amendment  to  the
21    agreement,   shall   remain  in  effect  unless  modified  in
22    accordance  with  law.   This  amendatory  Act  of  1995   is
23    declarative of existing law and shall apply to all annexation
24    agreements.
25    (Source:  P.A.  89-432,  eff.  6-1-96;  89-537,  eff. 1-1-97;
26    revised 8-15-96.)
27        Section 2-120.   The  Fire  Protection  District  Act  is
28    amended by changing Section 4 as follows:
29        (70 ILCS 705/4) (from Ch. 127 1/2, par. 24)
30        Sec. 4.  Trustees; conflict of interest; violations.
31        (a)  A  board of trustees consisting of 3 members for the
32    government and control of the affairs and business of a  fire
HB1269 Enrolled            -106-               LRB9001000EGfg
 1    protection  district  incorporated  under  this  Act shall be
 2    created in the following manner:
 3             (1)  If the district lies  wholly  within  a  single
 4        township   but   does   not  also  lie  wholly  within  a
 5        municipality, the board  of  trustees  of  that  township
 6        shall  appoint  the  trustees  for  the  district  but no
 7        township  official  who  is  eligible  to  vote  on   the
 8        appointment shall be eligible for such appointment.
 9             (2)  If  the  district  is wholly contained within a
10        municipality, the  governing  body  of  the  municipality
11        shall appoint the trustees for the district.
12             (3)  If  the  district  is wholly contained within a
13        single county but does not lie  wholly  within  a  single
14        township  or  a single municipality, the trustees for the
15        district shall be appointed by the presiding  officer  of
16        the  county  board  with  the  advice  and consent of the
17        county board; except that in counties with  a  population
18        in excess of 3,000,000, 2 trustees for the district shall
19        be  appointed  by  the  board of trustees of the township
20        that has the greatest population within the  district  as
21        determined  by  the  last  preceding federal census. That
22        board  of  trustees  shall  also  appoint  the  remaining
23        trustee if no other township comprises at  least  10%  of
24        the  population  of  the  district.   If  only  one other
25        township comprises at least 10% of the population of  the
26        district,  then  the  board  of trustees of that district
27        shall appoint the remaining trustee.  If 2 or more  other
28        townships each comprise at least 10% of the population of
29        the  district,  then  the  boards  of  trustees  of those
30        townships shall jointly appoint  the  remaining  trustee.
31        No  township  official  who  is  eligible  to vote on the
32        appointment shall be eligible for the appointment.
33             (4)  If the district is located  in  more  than  one
34        county,  the   number  of trustees who are residents of a
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 1        county shall be in proportion, as nearly as  practicable,
 2        to  the number of residents of the district who reside in
 3        that county in relation to the total  population  of  the
 4        district.
 5                  (A)  In counties with a population of 3,000,000
 6             or more, the trustees shall be appointed as provided
 7             in paragraphs (1), (2), and (3) of subsection (a) of
 8             this  Section.  For purposes of this item (A) and in
 9             item (B), "district" means that portion of the total
10             fire protection district lying within a county  with
11             a population in excess of 3,000,000.
12                  (B)  In counties with a population of less than
13             3,000,000,  the  trustees  for the district shall be
14             appointed by the presiding  officer  of  the  county
15             board  with  the  advice  and  consent of the county
16             board.
17        Upon the expiration of the term of a trustee  who  is  in
18    office  on October 1, 1975, the successor shall be a resident
19    of whichever county is  entitled to  such  representation  in
20    order to bring about the proportional representation required
21    herein, and he shall be appointed by the county board of that
22    county,  or  in  the case of a home rule county as defined by
23    Article VII, Section 6 of the Constitution of 1970, the chief
24    executive officer of that county, with the advice and consent
25    of the county board.
26        Thereafter, each trustee shall be succeeded by a resident
27    of the same  county  who  shall  be  appointed  by  the  same
28    appointing   authority;   however,   the  provisions  of  the
29    preceding paragraph shall apply to  the  appointment  of  the
30    successor to each trustee who is in office at the time of the
31    publication of each decennial Federal census of population.
32        Within 60 days after the adoption of this Act as provided
33    in  Section  1,  or  within  60 days after the adoption of an
34    ordinance pursuant to subsection (c)  of  Section  4.01,  the
HB1269 Enrolled            -108-               LRB9001000EGfg
 1    appropriate appointing authority shall appoint 3 trustees who
 2    are electors in the district, not more than one of whom shall
 3    be  from  any  one  city or village or incorporated town in a
 4    district unless such city or village or incorporated town has
 5    more than 50% of the population in the district according  to
 6    last  preceding  Federal  census.    Such trustees shall hold
 7    their offices thenceforward and for one, 2 and 3  years  from
 8    the  first  Monday  of  May  next after their appointment and
 9    until their successors have been selected and  qualified  and
10    thereafter,  unless  the  district  has  determined  to elect
11    trustees as provided in Section 4a, on or before  the  second
12    Monday  in  April of each year the appointing authority shall
13    appoint  one  trustee  whose  term  shall  be  for  3   years
14    commencing  on  the  first  Monday in May next after they are
15    respectively appointed.  The length  of  term  of  the  first
16    trustees shall be determined by lot at their first meeting.
17        Each  trustee shall, before entering on the duties of his
18    office, enter into bond with security to be approved  by  the
19    appointing  authority  in  such  sum  as  the  authority  may
20    determine.
21        A  majority  of  the board of trustees shall constitute a
22    quorum, but a smaller number may adjourn from day to day.  No
23    trustee or employee of such district  shall  be  directly  or
24    indirectly  interested  financially  in  any contract work or
25    business or the sale of any article, the  expense,  price  or
26    consideration  of  which  is paid by the district; nor in the
27    purchase of any real estate or other property,  belonging  to
28    the district, or which shall be sold for taxes or assessments
29    or  by  virtue  of legal process at the suit of the district.
30    Nothing  in  this  Section  prohibits  the   appointment   or
31    selection  of  any  person  or trustee or employee whose only
32    interest in the district is as an owner  of  real  estate  in
33    such  fire  protection  district  or  of  contributing to the
34    payment of taxes levied by the district.  The trustees  shall
HB1269 Enrolled            -109-               LRB9001000EGfg
 1    have  the power to provide and adopt a corporate seal for the
 2    district.
 3        (b)  However,  any   trustee   may   provide   materials,
 4    merchandise, property, services or labor, if:
 5             A.  the   contract   is   with   a   person,   firm,
 6        partnership,   association,  corporation  or  cooperative
 7        association in which such  interested  trustee  has  less
 8        than a 7 1/2% share in the ownership; and
 9             B.  such  interested  trustee publicly discloses the
10        nature and extent of his  interest  prior  to  or  during
11        deliberations   concerning  the  proposed  award  of  the
12        contract; and
13             C.  such interested trustee abstains from voting  on
14        the  award of the contract, though he shall be considered
15        present for the purposes of establishing a quorum; and
16             D.  such contract is approved by a majority vote  of
17        those trustees presently holding office; and
18             E.  the contract is awarded after sealed bids to the
19        lowest  responsible  bidder if the amount of the contract
20        exceeds $1500, but the contract may  be  awarded  without
21        bidding if the amount is less than $1500; and
22             F.  the  award  of  the contract would not cause the
23        aggregate amount of all such contracts so awarded to  the
24        same person, firm, association, partnership, corporation,
25        or  cooperative  association  in  the same fiscal year to
26        exceed $25,000.
27        (c)  In addition to the above exemption, any  trustee  or
28    employee   may   provide  materials,  merchandise,  property,
29    services or labor if:
30             A.  the award of  the  contract  is  approved  by  a
31        majority  vote  of  the  board  of  trustees  of the fire
32        protection district provided  that  any  such  interested
33        member shall abstain from voting; and
34             B.  the  amount  of  the  contract  does  not exceed
HB1269 Enrolled            -110-               LRB9001000EGfg
 1        $1000; and
 2             C.  the award of the contract would  not  cause  the
 3        aggregate  amount of all such contracts so awarded to the
 4        same person, firm, association, partnership, corporation,
 5        or cooperative association in the  same  fiscal  year  to
 6        exceed $2000; and
 7             D.  such  interested  member  publicly discloses the
 8        nature and extent of his  interest  prior  to  or  during
 9        deliberations   concerning  the  proposed  award  of  the
10        contract; and
11             E.  such interested member abstains from  voting  on
12        the  award of the contract, though he shall be considered
13        present for the purposes of establishing a quorum.
14        (d)  A contract for the  procurement  of  public  utility
15    services  by  a district with a public utility company is not
16    barred by this Section by one or more members of the board of
17    trustees being an officer or employee of the  public  utility
18    company  or  holding  an ownership interest if no more than 7
19    1/2% in the public utility company, or holding  an  ownership
20    interest  of  any  size if the fire protection district has a
21    population of less than 7,500 and the public utility's  rates
22    are approved by the Illinois Commerce Commission.  An elected
23    or  appointed  member of the board of trustees having such an
24    interest shall be deemed not to have  a  prohibited  interest
25    under this Section.
26        (e)  Any officer or employee who violates this Section is
27    guilty of a Class 4 felony and in addition thereto any office
28    held  by  such  person  so  convicted shall become vacant and
29    shall be so declared as part of the judgment of the court.
30        (f)  Nothing contained in  this  Section,  including  the
31    restrictions set forth in subsections (b), (c) and (d), shall
32    preclude  a  contract  of  deposit  of monies, loans or other
33    financial services by a fire protection district with a local
34    bank or local savings and  loan  association,  regardless  of
HB1269 Enrolled            -111-               LRB9001000EGfg
 1    whether  a  member or members of the board of trustees of the
 2    fire protection district  are  interested  in  such  bank  or
 3    savings  and loan association as an officer or employee or as
 4    a holder of less than 7 1/2% of the total ownership interest.
 5    A member or members  holding  such  an  interest  in  such  a
 6    contract  shall  not  be  deemed  to  be holding a prohibited
 7    interest for purposes of this Act.  Such interested member or
 8    members of the board of  trustees  must  publicly  state  the
 9    nature  and  extent  of  their  interest during deliberations
10    concerning the proposed award of such a contract,  but  shall
11    not  participate  in any further deliberations concerning the
12    proposed award.  Such interested member or members shall  not
13    vote  on  such  a  proposed  award.   Any  member  or members
14    abstaining from participation  in  deliberations  and  voting
15    under  this Section may be considered present for purposes of
16    establishing a quorum. Award of such a contract shall require
17    approval by  a  majority  vote  of  those  members  presently
18    holding  office. Consideration and award of any such contract
19    in which a member or members are interested may only be  made
20    at  a  regularly  scheduled  public  meeting  of the board of
21    trustees of the fire protection district.
22        (g)  Beginning on the effective date of  this  amendatory
23    Act  of  1990  and ending 3 years after the effective date of
24    this amendatory Act of 1990, in the case of a fire protection
25    district board of trustees in a county with a  population  of
26    more  than  400,000  but  less than 450,000, according to the
27    1980 general census, created under subsection (a),  paragraph
28    (3)  of this Section a petition for the redress of a trustee,
29    charging the  trustee  with  palpable  omission  of  duty  or
30    nonfeasance  in  office,  signed  by  not less than 5% of the
31    electors of the district may be  presented  to  the  township
32    supervisor  or  the presiding officer of the county board, as
33    appropriate. Upon  receipt  of  the  petition,  the  township
34    supervisor  or  presiding  officer  of  the  county board, as
HB1269 Enrolled            -112-               LRB9001000EGfg
 1    appropriate, shall preside over a hearing on  the  matter  of
 2    the  requested  redress.   The hearing shall be held not less
 3    than 14 nor more than 30 days after receipt of the  petition.
 4    In  the  case of a fire protection district trustee appointed
 5    by the presiding officer of the county board,  the  presiding
 6    officer  shall appoint at least 4 but not more than 8 members
 7    of the county board, a majority of whom  shall  reside  in  a
 8    county  board  district in which the fire protection district
 9    is wholly or partially  located,  to  serve  as  the  hearing
10    panel.   In  the  case  of a fire protection district trustee
11    appointed  by  the  board  of  town  trustees,  the  township
12    supervisor  and  2  other  town  trustees  appointed  by  the
13    supervisor shall serve as the hearing panel.  Within 30  days
14    after  the hearing, the panel  shall issue a statement of its
15    findings concerning the charges against  the  trustee,  based
16    upon  the  evidence presented at the hearing, and may make to
17    the  fire  protection  district  any  recommendations  deemed
18    appropriate.
19    (Source: P.A.  89-482,  eff.  1-1-97;  89-588,  eff.  1-1-97;
20    revised 8-14-96.)
21        Section  2-125.   The  Park  District  Code is amended by
22    changing Section 10-7 as follows:
23        (70 ILCS 1205/10-7) (from Ch. 105, par. 10-7)
24        Sec. 10-7.  Sale, lease, or exchange of realty.
25        (a)  Any park district owning and holding any real estate
26    is authorized to sell or lease such property to another  unit
27    of  Illinois  State or local government, or to lease upon the
28    terms and at the price that the board determines for a period
29    not to exceed 99 years to  any  not  for  profit  corporation
30    organized  under  the  laws of this State, in either case for
31    public use, and provided that the grantee or lessee covenants
32    to hold  and  maintain  such  property  for  public  park  or
HB1269 Enrolled            -113-               LRB9001000EGfg
 1    recreational  purposes  or  such  park district obtains other
 2    real property of substantially the same size or larger and of
 3    substantially  the  same  or  greater  suitability  for  park
 4    purposes without additional cost to such district.
 5        (b)  Any park district owning or holding any real  estate
 6    is  authorized  to  convey such property to a nongovernmental
 7    entity in exchange for other real property  of  substantially
 8    equal  or  greater value as determined by 2 appraisals of the
 9    property and of substantially the same or greater suitability
10    for park purposes without additional cost to such district.
11        Prior to such exchange with a nongovernmental entity  the
12    park  board  shall hold a public meeting in order to consider
13    the proposed conveyance.  Notice of  such  meeting  shall  be
14    published  not  less  than  three  times  (the first and last
15    publication being not less than 10 days apart) in a newspaper
16    of general circulation within the park district.  If there is
17    no such newspaper,  then such notice shall be posted  in  not
18    less  than  3  public  places  in said park district and such
19    notice shall not become effective until 10  days  after  said
20    publication or posting.
21        (c)  Notwithstanding  any  other  provision  of this Act,
22    this subsection (c) shall apply only to  any  park  districts
23    that   serve   district   which  serves  territory  within  a
24    municipality having  of  more  than  40,000  inhabitants  and
25    within  a  county having of more than 260,000 inhabitants and
26    bordering that  borders  the  Mississippi  River.   Any  park
27    district  owning or holding real estate is authorized to sell
28    that property to  any  not-for-profit  corporation  organized
29    under  the  laws  of  this  State upon the condition that the
30    corporation uses the property for public park or recreational
31    programs for youth.  The park district shall have  the  right
32    of  re-entry  for  breach  of  condition  subsequent.  If the
33    corporation stops using the property for these purposes,  the
34    property shall revert back to ownership of the park district.
HB1269 Enrolled            -114-               LRB9001000EGfg
 1    Any temporary suspension of use caused by the construction of
 2    improvements  on the property for public park or recreational
 3    programs for youth is not a breach of condition subsequent.
 4        Prior to the sale of the  property  to  a  not-for-profit
 5    corporation,  the  park  board shall hold a public meeting to
 6    consider the proposed sale.  Notice of the meeting  shall  be
 7    published   not  less  than  3  times  (the  first  and  last
 8    publication being not less than 10 days apart) in a newspaper
 9    of general circulation within the park district.  If there is
10    no such newspaper, then the notice shall  be  posted  in  not
11    less  than  3 public places in the park district.  The notice
12    shall be published or posted at  least  10  days  before  the
13    meeting.  A resolution to approve the sale of the property to
14    a  not-for-profit corporation requires adoption by a majority
15    of the park board.
16        (d)  Real estate, not subject to such covenant  or  which
17    has  not  been  conveyed  and  replaced  as  provided in this
18    Section, may be conveyed in the manner provided  by  Sections
19    10-7a to 10-7d hereof, inclusive.
20        (e)  In  addition  to  any  other  power provided in this
21    Section, any park district owning or holding real estate that
22    the board deems is not  required  for  park  or  recreational
23    purposes  may  lease  such  real  estate to any individual or
24    entity and may collect rents therefrom.  Such lease shall not
25    exceed 2 and one-half times the term of years provided for in
26    Section 8-15 governing installment purchase contracts.
27    (Source: P.A. 89-458,  eff.  5-24-96;  89-509,  eff.  7-5-96;
28    revised 8-23-96.)
29        Section  2-130.   The  Sanitary  District  Act of 1917 is
30    amended by changing Section 4 as follows:
31        (70 ILCS 2405/4) (from Ch. 42, par. 303)
32        Sec.  4.   The  trustees  shall  constitute  a  board  of
HB1269 Enrolled            -115-               LRB9001000EGfg
 1    trustees for the district.  The  board  of  trustees  is  the
 2    corporate  authority  of  such  sanitary  district, and shall
 3    exercise all the  powers  and  manage  and  control  all  the
 4    affairs  and  property of the district. The board of trustees
 5    immediately  after  their  appointment  and  at  their  first
 6    meeting in May of each year thereafter, shall  elect  one  of
 7    their   number   as   president,   one  of  their  number  as
 8    vice-president, and from or outside  of  their  membership  a
 9    clerk   and  an  assistant  clerk.  In  case  of  the  death,
10    resignation, absence from the State, or other  disability  of
11    the  president,  the  powers,  duties  and  emoluments of the
12    office   of   the   president   shall   devolve   upon    the
13    vice-president,  until  such disability is removed or until a
14    successor to the president is appointed  and  chosen  in  the
15    manner   provided  in  this  Act.  The  board  may  select  a
16    treasurer, engineer and attorney  for  the  district,  and  a
17    board  of  local  improvements consisting of 5 members in any
18    sanitary district which includes one or  more  municipalities
19    with  a  population  of  over  90,000  but  less than 500,000
20    according to the most recent Federal census and consisting of
21    3 members in any other district, all of whom may be  trustees
22    or  other  citizens  of  the sanitary district. The board may
23    appoint such other officers and hire such employees to manage
24    and control the  operations  of  the  district  as  it  deems
25    necessary; provided, however, that the board shall not employ
26    an  individual  as a wastewater operator whose Certificate of
27    Technical Competency is  suspended  or  revoked  under  rules
28    adopted  by  the  Pollution  Control  Board under item (4) of
29    subsection (a) of Section 13 of the Environmental  Protection
30    Act.    The  board may appoint a chief administrative officer
31    for a term not to exceed 4 years subject to  removal  by  the
32    board  for  cause.   Appointment  of the chief administrative
33    officer may be renewed as often as the board deems necessary.
34    All other persons selected by  the  board  shall  hold  their
HB1269 Enrolled            -116-               LRB9001000EGfg
 1    respective  offices during the pleasure of the board, and all
 2    persons selected by the board shall give such bond as may  be
 3    required by the board. The board may prescribe the duties and
 4    fix the compensation of all the officers and employees of the
 5    sanitary  district.  However,  no  member  of  the  board  of
 6    trustees shall receive more than $6,000 per year.
 7        The  board  of  trustees  has  full  power  to  pass  all
 8    necessary  ordinances,  rules  and regulations for the proper
 9    management and conduct of the business of the board  and  the
10    corporation,  and  for  carrying  into effect the objects for
11    which the sanitary district was formed.  Such ordinances  may
12    provide  for a fine for each offense of not less than $100 or
13    more than $1,000.  Each day's continuance of  such  violation
14    shall  be a separate offense.  Fines pursuant to this Section
15    are recoverable by the sanitary district in a  civil  action.
16    The  sanitary  district is authorized to apply to the circuit
17    court for injunctive relief or mandamus when, in the  opinion
18    of the chief administrative officer, such relief is necessary
19    to protect the sewerage system of the sanitary district.
20    (Source:  P.A.  89-143,  eff.  7-14-95; 89-502, eff. 6-28-96;
21    revised 8-19-96.)
22        Section 2-135.  The School Code is  amended  by  changing
23    Sections 10-21.4a, 10-22.5a, 10-22.6, 10-22.20, 13A-8, 13A-9,
24    18-8,  24-2,  and  34-2.3 and by setting forth, changing, and
25    renumbering multiple versions of Section 10-22.3d as follows:
26        (105 ILCS 5/10-21.4a) (from Ch. 122, par. 10-21.4a)
27        Sec.  10-21.4a.   Principals   -   Duties.    To   employ
28    principals  who  hold  valid  supervisory  or  administrative
29    certificates  who shall supervise the operation of attendance
30    centers  as  the  board  shall  determine  necessary.  In  an
31    attendance center  having  fewer  than  4  teachers,  a  head
32    teacher  who  does not qualify as a principal may be assigned
HB1269 Enrolled            -117-               LRB9001000EGfg
 1    in the place of a principal.
 2        The     principal     shall     assume     administrative
 3    responsibilities  and  instructional  leadership,  under  the
 4    supervision of the superintendent,  and  in  accordance  with
 5    reasonable  rules  and  regulations  of  the  board,  for the
 6    planning, operation and evaluation of the educational program
 7    of the attendance area  to  which  he  or  she  is  assigned.
 8    However,  in  districts  under  a  Financial  Oversight Panel
 9    pursuant to Section 1A-8 for violating a financial plan,  the
10    duties  and responsibilities of principals in relation to the
11    financial and business operations of the  district  shall  be
12    approved  by  the  Panel.  In  the event the Board refuses or
13    fails to follow a directive or  comply  with  an  information
14    request  of  the Panel, the performance of those duties shall
15    be subject to the direction of the Panel.
16        School  boards  shall  specify  in   their   formal   job
17    description   for   principals   that   his  or  her  primary
18    responsibility is  in  the  improvement  of  instruction.   A
19    majority  of  the time spent by a principal shall be spent on
20    curriculum and staff  development  through  both  formal  and
21    informal    activities,    establishing    clear   lines   of
22    communication  regarding   school   goals,   accomplishments,
23    practices and policies with parents and teachers.
24        Unless  residency  within  a  school  district is made an
25    express condition  of  a  person's  employment  or  continued
26    employment as a principal of that school district at the time
27    of  the  person's  initial  employment as a principal of that
28    district, residency within that school district  may  not  at
29    any  time  thereafter  be  made  a condition of that person's
30    employment or continued employment  as  a  principal  of  the
31    district,  without  regard  to  whether  the person's initial
32    employment as a principal of the  district  began  before  or
33    begins  on or after the effective date of this amendatory Act
34    of 1996 and without regard to whether that person's residency
HB1269 Enrolled            -118-               LRB9001000EGfg
 1    within or outside of the district began or was changed before
 2    or begins or changes on or after that effective date.  In  no
 3    event  shall residency within a school district be considered
 4    in  determining  the  compensation  of  a  principal  or  the
 5    assignment or transfer of a principal to an attendance center
 6    of the district.
 7        School boards shall  ensure  that  their  principals  are
 8    evaluated on their instructional leadership ability and their
 9    ability   to  maintain  a  positive  education  and  learning
10    climate.
11        It shall also be the responsibility of the  principal  to
12    utilize resources of proper law enforcement agencies when the
13    safety and welfare of students and teachers are threatened by
14    illegal use of drugs and alcohol.
15        The   principal   shall  submit  recommendations  to  the
16    superintendent   concerning   the   appointment,   retention,
17    promotion and assignment of all  personnel  assigned  to  the
18    attendance center.
19        If a principal is absent due to extended illness or leave
20    of  absence, an assistant principal may be assigned as acting
21    principal for a period not to exceed 60 school days.
22    (Source: P.A. 89-572,  eff.  7-30-96;  89-622,  eff.  8-9-96;
23    revised 9-10-96.)
24        (105 ILCS 5/10-22.3d)
25        Sec.  10-22.3d.  Woman's  health care provider. Insurance
26    protection and benefits for  employees  are  subject  to  the
27    provisions of Section 356r of the Illinois Insurance Code.
28    (Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)
29        (105 ILCS 5/10-22.3e)
30        Sec.    10-22.3e.   10-22.3d.    Post-parturition   care.
31    Insurance protection and benefits for employees shall provide
32    the post-parturition care benefits required to be covered  by
HB1269 Enrolled            -119-               LRB9001000EGfg
 1    a  policy of accident and health insurance under Section 356s
 2    356r of the Illinois Insurance Code.
 3    (Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)
 4        (105 ILCS 5/10-22.5a) (from Ch. 122, par. 10-22.5a)
 5        Sec. 10-22.5a.  Attendance by foreign  exchange  students
 6    and certain nonresident pupils.
 7        (a)  To  enter  into  written  agreements  with  cultural
 8    exchange   organizations,   or   with  nationally  recognized
 9    eleemosynary institutions  that  promote  excellence  in  the
10    arts,  mathematics,  or  science.  The written agreements may
11    provide for tuition free attendance  at  the  local  district
12    school by foreign exchange students, or by nonresident pupils
13    of  eleemosynary  institutions. The local board of education,
14    as part of the  agreement,  may  require  that  the  cultural
15    exchange  program  or  the  eleemosynary institutions provide
16    services to the  district  in  exchange  for  the  waiver  of
17    nonresident tuition.
18        To  enter  into  written  agreements with adjacent school
19    districts to provide for tuition free attendance by a student
20    of the adjacent district when  requested  for  the  student's
21    health and safety by the student or parent and both districts
22    determine  that the student's health or safety will be served
23    by such attendance. Districts shall not be required to  enter
24    into  such  agreements  nor  be  required  to  alter existing
25    transportation  services  due  to  the  attendance  of   such
26    non-resident pupils.
27        (b)  Nonresident  pupils  and  foreign  exchange students
28    attending  school  on  a  tuition  free  basis   under   such
29    agreements may be counted for the purposes of determining the
30    apportionment  of  State  aid  provided under Section 18-8 of
31    this Act. Provided that any cultural exchange organization or
32    eleemosynary institutions    wishing  to  participate  in  an
33    agreement  authorized  under this Section must be approved in
HB1269 Enrolled            -120-               LRB9001000EGfg
 1    writing by the State Board of Education. The State  Board  of
 2    Education  may  establish  reasonable  rules to determine the
 3    eligibility   of   cultural   exchange    organizations    or
 4    eleemosynary   institutions   wishing   to   participate   in
 5    agreements  authorized under this Section. No organization or
 6    institution participating in agreements authorized under this
 7    Section may exclude any individual for participation  in  its
 8    program on account of the person's race, color, sex, religion
 9    or nationality.
10    (Source:  P.A.  89-480,  eff.  1-1-97;  89-622,  eff. 8-9-96;
11    revised 8-19-96.)
12        (105 ILCS 5/10-22.6) (from Ch. 122, par. 10-22.6)
13        Sec. 10-22.6. Suspension or expulsion of  pupils;  school
14    searches.
15        (a)  To  expel  pupils  guilty  of  gross disobedience or
16    misconduct, and no action shall lie  against  them  for  such
17    expulsion.  Expulsion shall take place only after the parents
18    have been requested to appear at a meeting of the  board,  or
19    with  a  hearing  officer  appointed  by it, to discuss their
20    child's behavior. Such request shall be made by registered or
21    certified mail and shall state the time, place and purpose of
22    the meeting. The board, or a hearing officer appointed by it,
23    at such meeting shall state the reasons for dismissal and the
24    date on which the expulsion is  to  become  effective.  If  a
25    hearing  officer is appointed by the board he shall report to
26    the board a written summary of  the  evidence  heard  at  the
27    meeting  and  the  board  may  take such action thereon as it
28    finds appropriate.
29        (b)  To  suspend  or  by  regulation  to  authorize   the
30    superintendent  of  the  district or the principal, assistant
31    principal, or dean of  students  of  any  school  to  suspend
32    pupils  guilty  of  gross  disobedience  or misconduct, or to
33    suspend pupils guilty of gross disobedience or misconduct  on
HB1269 Enrolled            -121-               LRB9001000EGfg
 1    the  school  bus  from  riding  the school bus, and no action
 2    shall lie against them for such suspension. The board may  by
 3    regulation  authorize  the  superintendent of the district or
 4    the principal, assistant principal, or dean  of  students  of
 5    any school to suspend pupils guilty of such acts for a period
 6    not  to exceed 10 school days. If a pupil is suspended due to
 7    gross disobedience or misconduct on a school bus,  the  board
 8    may  suspend the pupil in excess of 10 school days for safety
 9    reasons.  Any suspension shall be reported immediately to the
10    parents or guardian of such pupil along with a full statement
11    of the reasons for such suspension  and  a  notice  of  their
12    right  to  a  review,  a  copy of which shall be given to the
13    school board. Upon request of the  parents  or  guardian  the
14    school  board  or  a  hearing  officer  appointed by it shall
15    review  such  action  of  the  superintendent  or  principal,
16    assistant principal, or dean of students.  At such review the
17    parents or guardian of the pupil may appear and  discuss  the
18    suspension  with  the  board  or  its  hearing  officer. If a
19    hearing officer is appointed by the board he shall report  to
20    the  board  a  written  summary  of the evidence heard at the
21    meeting. After its hearing or upon  receipt  of  the  written
22    report of its hearing officer, the board may take such action
23    as it finds appropriate.
24        (c)  The Department of Human Services shall be invited to
25    send  a  representative  to  consult  with  the board at such
26    meeting whenever there is evidence that mental illness may be
27    the cause for expulsion or suspension.
28        (d)  The board may expel a student for a definite  period
29    of  time  not  to exceed 2 calendar years, as determined on a
30    case by case basis.  A student  who  is  determined  to  have
31    brought  a weapon to school, any school-sponsored activity or
32    event, or any activity or  event  which  bears  a  reasonable
33    relationship  to school shall be expelled for a period of not
34    less than one year, except that the expulsion period  may  be
HB1269 Enrolled            -122-               LRB9001000EGfg
 1    modified  by the board on a case by case basis.  For purposes
 2    of this Section, the term  "weapon"  means  possession,  use,
 3    control  or transfer of any object which may be used to cause
 4    bodily harm, including but not limited to a weapon as defined
 5    by Section 921 of Title 18, United States  Code,  firearm  as
 6    defined  in  Section 1.1 of the Firearm Owners Identification
 7    Act, use of weapon as defined in Section 24-1 of the Criminal
 8    Code,  knives,  guns,  firearms,  rifles,   shotguns,   brass
 9    knuckles,  billy clubs, or "look-alikes" thereof.  Such items
10    as baseball bats, pipes, bottles, locks, sticks, pencils, and
11    pens may be considered weapons if used  or  attempted  to  be
12    used  to cause bodily harm.  Expulsion or suspension shall be
13    construed in a manner consistent with the Federal Individuals
14    with Disabilities Education Act. A student who is subject  to
15    suspension  or  expulsion  as provided in this Section may be
16    eligible for a transfer to an alternative school  program  in
17    accordance   with  Article  13A  of  the  School  Code.   The
18    provisions  of  this  subsection  (d)  apply  in  all  school
19    districts, including special charter districts and  districts
20    organized under Article 34.
21        (e)  To  maintain  order  and  security  in  the schools,
22    school authorities may inspect and search  places  and  areas
23    such  as  lockers,  desks,  parking  lots,  and  other school
24    property and equipment owned or controlled by the school,  as
25    well  as  personal  effects left in those places and areas by
26    students, without notice to or the consent  of  the  student,
27    and  without a search warrant.  As a matter of public policy,
28    the General Assembly finds that students have  no  reasonable
29    expectation  of privacy in these places and areas or in their
30    personal effects left in  these  places  and  areas.   School
31    authorities  may  request  the  assistance of law enforcement
32    officials for  the  purpose  of  conducting  inspections  and
33    searches  of  lockers,  desks, parking lots, and other school
34    property and equipment owned or controlled by the school  for
HB1269 Enrolled            -123-               LRB9001000EGfg
 1    illegal   drugs,  weapons,  or  other  illegal  or  dangerous
 2    substances or materials, including searches conducted through
 3    the use of specially trained dogs.  If a search conducted  in
 4    accordance  with  this  Section  produces  evidence  that the
 5    student has violated or is violating either  the  law,  local
 6    ordinance,  or  the school's policies or rules, such evidence
 7    may be seized by school authorities, and disciplinary  action
 8    may  be  taken.   School  authorities may also turn over such
 9    evidence to law enforcement authorities.  The  provisions  of
10    this  subsection (e) apply in all school districts, including
11    special  charter  districts  and  districts  organized  under
12    Article 34.
13    (Source: P.A.  89-371,  eff.  1-1-96;  89-507,  eff.  7-1-97;
14    89-610, eff. 8-6-96; revised 9-9-96.)
15        (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
16        Sec.  10-22.20.  Classes  for  adults  and  youths  whose
17    schooling   has   been   interrupted;  Conditions  for  State
18    reimbursement; Use of child care facilities.
19        (a)  To establish special classes for the instruction (1)
20    of persons of age 21 years or over, and (2) of  persons  less
21    than age 21 and not otherwise in attendance in public school,
22    for  the  purpose  of  providing adults in the community, and
23    youths  whose  schooling  has  been  interrupted,  with  such
24    additional basic education, vocational  skill  training,  and
25    other  instruction  as  may  be  necessary  to increase their
26    qualifications for employment or other means of  self-support
27    and  their ability to meet their responsibilities as citizens
28    including  courses  of  instruction  regularly  accepted  for
29    graduation  from  elementary  or   high   schools   and   for
30    Americanization  and  General  Educational Development Review
31    classes.
32        The board  shall  pay  the  necessary  expenses  of  such
33    classes  out of school funds of the district, including costs
HB1269 Enrolled            -124-               LRB9001000EGfg
 1    of student transportation and such  facilities  or  provision
 2    for  child-care  as  may  be necessary in the judgment of the
 3    board  to  permit  maximum  utilization  of  the  courses  by
 4    students with  children,  and  other  special  needs  of  the
 5    students  directly related to such instruction.  The expenses
 6    thus incurred shall be subject  to  State  reimbursement,  as
 7    provided  in  this  Section.   The  board  may make a tuition
 8    charge for persons taking instruction who are not subject  to
 9    State  reimbursement,  such  tuition charge not to exceed the
10    per capita cost of such classes.
11        The cost of such instruction,  including  the  additional
12    expenses   herein  authorized,  incurred  for  recipients  of
13    financial aid under the Illinois  Public  Aid  Code,  or  for
14    persons   for  whom  education  and  training  aid  has  been
15    authorized under Section 9-8 of that Code, shall  be  assumed
16    in  its  entirety from funds appropriated by the State to the
17    State Board of Education.
18        (b)  The  State  Board  of  Education  and  the  Illinois
19    Community  College  Board  shall  annually  enter   into   an
20    interagency   agreement   to  implement  this  Section.   The
21    interagency agreement shall establish the standards  for  the
22    courses  of  instruction  reimbursed under this Section.  The
23    State Board of Education shall supervise  the  administration
24    of   the  programs.   The  State  Board  of  Education  shall
25    determine  the  cost  of  instruction  in   accordance   with
26    standards jointly established by the State Board of Education
27    and  the Illinois Community College Board as set forth in the
28    interagency agreement,  including  therein  other  incidental
29    costs as herein authorized, which shall serve as the basis of
30    State  reimbursement  in  accordance  with  the provisions of
31    this  Section.  In  the  approval   of   programs   and   the
32    determination  of the cost of instruction, the State Board of
33    Education  shall  provide  for  the  maximum  utilization  of
34    federal funds for such programs.  The  interagency  agreement
HB1269 Enrolled            -125-               LRB9001000EGfg
 1    shall also include:
 2             (1)  the development of an index of need for program
 3        planning  and  for area funding allocations as defined by
 4        the State Board of Education;
 5             (2)  the   method   for   calculating    hours    of
 6        instruction,  as defined by the State Board of Education,
 7        claimable for reimbursement and a method to phase in  the
 8        calculation  and  for adjusting the calculations in cases
 9        where the services of a program are  interrupted  due  to
10        circumstances beyond the control of the program provider;
11             (3)  a   plan  for  the  reallocation  of  funds  to
12        increase the  amount  allocated  for  grants  based  upon
13        program performance as set forth in subsection (d) below;
14        and
15             (4)  the  development  of  standards for determining
16        grants based upon performance as set forth in  subsection
17        (d)  below and a plan for the phased-in implementation of
18        those standards.
19        For  instruction  provided  by   school   districts   and
20    community  college  districts  beginning  July  1,  1996  and
21    thereafter,  reimbursement  provided  by  the  State Board of
22    Education for classes authorized by  this  Section  shall  be
23    provided  pursuant  to the terms of the interagency agreement
24    from funds appropriated for the  reimbursement  criteria  set
25    forth in subsection (c) below.
26        (c)  Upon   the   annual   approval  of  the  interagency
27    agreement,  reimbursement  shall  be   first   provided   for
28    transportation,  child care services, and other special needs
29    of the students directly related to instruction and then from
30    the funds remaining an amount equal to  the  product  of  the
31    total  credit  hours  or units of instruction approved by the
32    State Board of Education, multiplied by the following:
33             (1)  For  adult   basic   education,   the   maximum
34        reimbursement  per credit hour or per unit of instruction
HB1269 Enrolled            -126-               LRB9001000EGfg
 1        shall be  equal  to  the  general  state  aid  per  pupil
 2        foundation  level established in subsections 5(a) through
 3        5(d) of Section 18-8, divided by 60;
 4             (2)  The maximum reimbursement per  credit  hour  or
 5        per  unit  of instruction in subparagraph (1) above shall
 6        be weighted for students enrolled in classes  defined  as
 7        vocational  skills  and  approved  by  the State Board of
 8        Education by 1.25;
 9             (3)  The maximum reimbursement per  credit  hour  or
10        per  unit  of instruction in subparagraph (1) above shall
11        be multiplied by .90 for  students  enrolled  in  classes
12        defined   as   adult  secondary  education  programs  and
13        approved by the State Board of Education;
14             (4)  For community  college  districts  the  maximum
15        reimbursement  per credit hour in subparagraphs (1), (2),
16        and (3)  above  shall  be  reduced  by  the  Adult  Basic
17        Education/Adult  Secondary  Education/English As A Second
18        Language credit hour grant  rate  prescribed  in  Section
19        2-16.02 of the Public Community College Act, as pro-rated
20        to the appropriation level; and
21             (5)  Programs receiving funds under the formula that
22        was  in  effect  during  the 1994-1995 program year which
23        continue to be approved and which generate at  least  80%
24        of  the  hours  claimable  in  1994-95, or in the case of
25        programs not approved in 1994-95  at  least  80%  of  the
26        hours  claimable  in  1995-96,  shall  have  funding  for
27        subsequent  years  based upon 100% of the 1995-96 formula
28        funding level for 1996-97, 90%  of  the  1995-96  formula
29        funding  level  for  1997-98,  80% of the 1995-96 formula
30        funding level for 1998-99, and 70% of the 1995-96 formula
31        funding level for 1999-2000.  For  any  approved  program
32        which  generates  less than 80% of the claimable hours in
33        its base year, the level  of  funding  pursuant  to  this
34        paragraph  shall be reduced proportionately.  Funding for
HB1269 Enrolled            -127-               LRB9001000EGfg
 1        program years after 1999-2000 shall be  pursuant  to  the
 2        interagency agreement.
 3        (d)  Upon   the   annual   approval  of  the  interagency
 4    agreement, the State Board of Education shall provide  grants
 5    to  eligible  programs for supplemental activities to improve
 6    or expand services under the Adult Education Act.    Eligible
 7    programs  shall be determined based upon performance outcomes
 8    of students in the programs as set forth in  the  interagency
 9    agreement.
10        (e)  Reimbursement  under  this  Section shall not exceed
11    the actual costs of the approved program.
12        If  the  amount  appropriated  to  the  State  Board   of
13    Education  for  reimbursement under this Section is less than
14    the amount required under this Act, the  apportionment  shall
15    be proportionately reduced.
16        School  districts  and  community  college  districts may
17    assess students up to $3.00  per  credit  hour,  for  classes
18    other than Adult Basic Education level programs, if needed to
19    meet program costs.
20        (f)  An  education  plan  shall  be  established for each
21    adult or youth whose schooling has been interrupted  and  who
22    is participating in the instructional programs provided under
23    this Section.
24        Each  school  board  and  community college shall keep an
25    accurate and detailed account of the students assigned to and
26    receiving instruction under this Section who are  subject  to
27    State  reimbursement  and  shall  submit  reports of services
28    provided commencing with fiscal year 1997 as required in  the
29    interagency agreement.
30        For  classes authorized under this Section, a credit hour
31    or unit of  instruction  is  equal  to  15  hours  of  direct
32    instruction for students enrolled in approved adult education
33    programs  at  midterm  and  making  satisfactory progress, in
34    accordance with standards jointly established  by  the  State
HB1269 Enrolled            -128-               LRB9001000EGfg
 1    Board  of  Education and the Illinois Community College Board
 2    as set forth in the interagency agreement.
 3        (g)  Upon proof submitted to the Illinois  Department  of
 4    Human  Services  of the payment of all claims submitted under
 5    this Section, that Department shall apply for  federal  funds
 6    made  available  therefor  and  any federal funds so received
 7    shall be paid into the General  Revenue  Fund  in  the  State
 8    Treasury.
 9        School  districts or community colleges providing classes
10    under this Section shall submit  applications  to  the  State
11    Board  of  Education  for  preapproval in accordance with the
12    standards jointly established by the State Board of Education
13    and the Illinois Community College Board as set forth in  the
14    interagency  agreement.   Payments shall be made by the State
15    Board of Education based  upon  approved  programs.   Interim
16    expenditure  reports  may  be  required by the State Board of
17    Education as set forth in the interagency agreement.    Final
18    claims for the school year shall be submitted to the regional
19    superintendents   for  transmittal  to  the  State  Board  of
20    Education as set forth in the interagency  agreement.   Final
21    adjusted payments shall be made by September 30.
22        If  a school district or community college district fails
23    to provide, or is providing  unsatisfactory  or  insufficient
24    classes  under this Section, the State Board of Education may
25    enter into agreements with public or private  educational  or
26    other   agencies  other  than  the  public  schools  for  the
27    establishment of such classes.
28        (h)  If a school district or community  college  district
29    establishes   child-care   facilities  for  the  children  of
30    participants in classes established under  this  Section,  it
31    may  extend  the use of these facilities to students who have
32    obtained employment and to other  persons  in  the  community
33    whose  children require care and supervision while the parent
34    or other person in charge of  the  children  is  employed  or
HB1269 Enrolled            -129-               LRB9001000EGfg
 1    otherwise absent from the home during all or part of the day.
 2    It may make the facilities available before and after as well
 3    as  during  regular  school hours to school age and preschool
 4    age children who may benefit thereby, including children  who
 5    require  care  and  supervision  pending  the return of their
 6    parent  or  other  person  in  charge  of  their  care   from
 7    employment or other activity requiring absence from the home.
 8        The  State  Board of Education shall pay to the board the
 9    cost of care in  the  facilities  for  any  child  who  is  a
10    recipient  of  financial  aid  under  The Illinois Public Aid
11    Code.
12        The board may charge for care of  children  for  whom  it
13    cannot  make claim under the provisions of this Section.  The
14    charge shall not exceed per capita cost, and  to  the  extent
15    feasible,  shall  be  fixed  at  a  level  which  will permit
16    utilization by employed parents of low  or  moderate  income.
17    It  may  also  permit  any  other State or local governmental
18    agency or private  agency  providing  care  for  children  to
19    purchase care.
20        After  July  1,  1970  when  the  provisions  of  Section
21    10-20.20  become  operative  in  the  district, children in a
22    child-care facility shall be transferred to the  kindergarten
23    established under that Section for such portion of the day as
24    may  be  required  for the kindergarten program, and only the
25    prorated costs of care and training provided  in  the  Center
26    for  the  remaining  period  shall be charged to the Illinois
27    Department of Human Services or  other  persons  or  agencies
28    paying for such care.
29        (i)  The  provisions  of this Section shall also apply to
30    school districts having a population exceeding 500,000.
31    (Source: P.A. 89-507,  eff.  7-1-97;  89-524,  eff.  7-19-96;
32    revised 8-15-96.)
33        (105 ILCS 5/13A-8)
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 1        Sec. 13A-8.  Funding.
 2        (a)  The   State   of  Illinois  shall  provide  new  and
 3    additional funding for the alternative school programs within
 4    each educational service region and within the Chicago public
 5    school system by line item appropriation made  to  the  State
 6    Board  of  Education  for  that  purpose.   This  money, when
 7    appropriated,   shall   be   provided   to    the    regional
 8    superintendent  and  to  the  Chicago Board of Education, who
 9    shall  establish  a  budget,  including  salaries,  for   all
10    alternative schools in that region.
11        (b)  The  school district in which the program is located
12    and from which  a  student  is  administratively  transferred
13    shall,  as  a  result of an administrative transfer, have its
14    average daily attendance funding with respect to that student
15    transferred to the alternative school program.
16    (Source: P.A. 89-383,  eff.  8-18-95;  89-629,  eff.  8-9-96;
17    89-636, eff. 8-9-96; revised 9-12-96.)
18        (105 ILCS 5/13A-9)
19        Sec. 13A-9.  Transportation.  Subject to the requirements
20    of  Article 29 and except as otherwise agreed by the parents,
21    school and regional superintendent, the school from  which  a
22    student  is administratively transferred shall provide for or
23    any  transportation  that  the  transfer   necessitates,   if
24    transportation  is  required  pursuant  to Section 29-3.  The
25    regional superintendent shall coordinate  all  transportation
26    arrangements   with   transferring  school  districts.    The
27    regional superintendent  may  also  arrange  for  cooperation
28    between  school  districts  in  the regional superintendent's
29    educational service region regarding the transportation needs
30    of transferred students in order to reduce the costs of  that
31    transportation  and  to  provide  greater convenience for the
32    students involved.
33    (Source: P.A. 89-383,  eff.  8-18-95;  89-629,  eff.  8-9-96;
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 1    89-636, eff. 8-9-96.)
 2        (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
 3        Sec.   18-8.  Basis   for   apportionment  to  districts,
 4    laboratory schools and alternative schools.
 5        A.  The amounts to be apportioned shall be determined for
 6    each educational  service  region  by  school  districts,  as
 7    follows:
 8        1.  General Provisions.
 9        (a)  In the computation of the amounts to be apportioned,
10    the  average  daily  attendance  of  all  pupils  in grades 9
11    through 12 shall be multiplied by 1.25.   The  average  daily
12    attendance  of  all  pupils  in  grades  7  and  8  shall  be
13    multiplied by 1.05.
14        (b)  The   actual  number  of  pupils  in  average  daily
15    attendance shall be computed in a one-teacher school district
16    by dividing the total aggregate days of pupil  attendance  by
17    the  actual  number of days school is in session but not more
18    than 30 such pupils shall be  accredited  for  such  type  of
19    district;  and  in  districts  of  2  or more teachers, or in
20    districts where records of attendance  are  kept  by  session
21    teachers, by taking the sum of the respective averages of the
22    units composing the group.
23        (c)  Pupils in average daily attendance shall be computed
24    upon the average of the best 3 months of pupils attendance of
25    the  current  school  year  except  as district claims may be
26    later  amended  as  provided  hereinafter  in  this  Section.
27    However,  for  any   school   district   maintaining   grades
28    kindergarten through 12, the "average daily attendance" shall
29    be  computed  on  the  average of the best 3 months of pupils
30    attendance of the current year in grades kindergarten through
31    8, added together with the average of the best  3  months  of
32    pupils attendance of the current year in grades 9 through 12,
33    except as district claims may be later amended as provided in
HB1269 Enrolled            -132-               LRB9001000EGfg
 1    this  Section.   Days  of attendance shall be kept by regular
 2    calendar months, except any  days  of  attendance  in  August
 3    shall  be  added  to  the  month of September and any days of
 4    attendance in June shall  be  added  to  the  month  of  May.
 5    Except  as  otherwise  provided  in  this  Section,  days  of
 6    attendance  by  pupils  shall be counted only for sessions of
 7    not less than 5 clock hours of  school  work  per  day  under
 8    direct  supervision  of:  (i)  teachers, or (ii) non-teaching
 9    personnel   or   volunteer   personnel   when   engaging   in
10    non-teaching  duties  and  supervising  in  those   instances
11    specified in subsection (a) of Section 10-22.34 and paragraph
12    10  of  Section 34-18, with pupils of legal school age and in
13    kindergarten and grades 1 through 12.
14        (d)  Pupils regularly enrolled in  a  public  school  for
15    only  a part of the school day may be counted on the basis of
16    1/6 day for every class hour of instruction of 40 minutes  or
17    more attended pursuant to such enrollment.
18        (e)  Days of attendance may be less than 5 clock hours on
19    the  opening  and  closing  of  the school term, and upon the
20    first day of pupil attendance, if preceded by a day  or  days
21    utilized as an institute or teachers' workshop.
22        (f)  A session of 4 or more clock hours may be counted as
23    a  day  of  attendance  upon  certification  by  the regional
24    superintendent, and approved by the State  Superintendent  of
25    Education  to the extent that the district has been forced to
26    use daily multiple sessions.
27        (g)  A session of 3 or more clock hours may be counted as
28    a day of attendance (1) when the remainder of the school  day
29    or  at  least  2 hours in the evening of that day is utilized
30    for an in-service training program  for  teachers,  up  to  a
31    maximum  of  5  days  per school year of which a maximum of 4
32    days  of  such  5  days  may  be  used   for   parent-teacher
33    conferences,  provided  a  district  conducts  an  in-service
34    training  program for teachers which has been approved by the
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 1    State Superintendent of Education; or,  in  lieu  of  4  such
 2    days,  2  full days may be used, in which event each such day
 3    may be counted as a day of attendance; and (2) when  days  in
 4    addition  to  those  provided  in item (1) are scheduled by a
 5    school pursuant to its school improvement plan adopted  under
 6    Article  34 or its revised or amended school improvement plan
 7    adopted under Article 2, provided that (i) such sessions of 3
 8    or more  clock  hours  are  scheduled  to  occur  at  regular
 9    intervals,  (ii)  the  remainder  of the school days in which
10    such sessions occur  are  utilized  for  in-service  training
11    programs  or other staff development activities for teachers,
12    and (iii) a sufficient number of minutes of school work under
13    the direct supervision of teachers are added  to  the  school
14    days  between such regularly scheduled sessions to accumulate
15    not less than the number of minutes by which such sessions of
16    3 or more clock hours fall short of 5 clock hours.  Any  full
17    days  used  for  the  purposes of this paragraph shall not be
18    considered for  computing  average  daily  attendance.   Days
19    scheduled for in-service training programs, staff development
20    activities,  or  parent-teacher  conferences may be scheduled
21    separately  for  different   grade   levels   and   different
22    attendance centers of the district.
23        (h)  A  session  of not less than one clock hour teaching
24    of hospitalized or homebound pupils on-site or  by  telephone
25    to  the  classroom  may  be counted as 1/2 day of attendance,
26    however these pupils must receive 4 or more  clock  hours  of
27    instruction to be counted for a full day of attendance.
28        (i)  A  session  of at least 4 clock hours may be counted
29    as a day of attendance for first grade pupils, and pupils  in
30    full  day kindergartens, and a session of 2 or more hours may
31    be  counted  as  1/2  day  of   attendance   by   pupils   in
32    kindergartens which provide only 1/2 day of attendance.
33        (j)  For children with disabilities who are below the age
34    of  6  years  and  who  cannot attend two or more clock hours
HB1269 Enrolled            -134-               LRB9001000EGfg
 1    because of their disability or immaturity, a session  of  not
 2    less  than  one  clock  hour  may  be  counted  as 1/2 day of
 3    attendance; however for such children whose educational needs
 4    so require a session of 4 or more clock hours may be  counted
 5    as a full day of attendance.
 6        (k)  A  recognized  kindergarten  which provides for only
 7    1/2 day of attendance by each pupil shall not have more  than
 8    1/2  day  of  attendance  counted  in  any  1  day.  However,
 9    kindergartens may count 2 1/2 days of  attendance  in  any  5
10    consecutive  school  days.   Where  a  pupil  attends  such a
11    kindergarten for 2 half days on  any  one  school  day,  such
12    pupil  shall  have  the  following  day  as a day absent from
13    school, unless the  school  district  obtains  permission  in
14    writing   from   the   State   Superintendent  of  Education.
15    Attendance at kindergartens which provide for a full  day  of
16    attendance  by  each  pupil  shall  be  counted  the  same as
17    attendance by first grade pupils.  Only  the  first  year  of
18    attendance  in  one  kindergarten  shall be counted except in
19    case of children who entered the kindergarten in their  fifth
20    year  whose educational development requires a second year of
21    kindergarten as determined under the rules and regulations of
22    the State Board of Education.
23        (l)  Days  of  attendance  by  tuition  pupils  shall  be
24    accredited only to the districts that pay the  tuition  to  a
25    recognized school.
26        (m)  The  greater  of  the  immediately  preceding year's
27    weighted average daily  attendance  or  the  average  of  the
28    weighted   average   daily   attendance  of  the  immediately
29    preceding year and the previous 2 years shall be used.
30        For any school year beginning July 1, 1986 or thereafter,
31    if the weighted average daily  attendance  in  either  grades
32    kindergarten  through  8 or grades 9 through 12 of a district
33    as computed for the  first  calendar  month  of  the  current
34    school  year  exceeds  by  more than 5%, but not less than 25
HB1269 Enrolled            -135-               LRB9001000EGfg
 1    pupils, the district's weighted average daily attendance  for
 2    the  first  calendar  month of the immediately preceding year
 3    in, respectively, grades kindergarten through 8 or  grades  9
 4    through  12,  a  supplementary  payment  shall be made to the
 5    district equal to the difference in the  amount  of  aid  the
 6    district  would be paid under this Section using the weighted
 7    average daily attendance in the district as computed for  the
 8    first  calendar  month  of  the  current  school year and the
 9    amount of aid the district would be paid using  the  weighted
10    average  daily  attendance  in  the  district  for  the first
11    calendar month  of  the  immediately  preceding  year.   Such
12    supplementary State aid payment shall be paid to the district
13    as  provided  in  Section  18-8.4  and  shall  be  treated as
14    separate from  all  other  payments  made  pursuant  to  this
15    Section 18-8.
16        (n)  The  number  of  low  income  eligible  pupils  in a
17    district shall result in an increase in the weighted  average
18    daily  attendance  calculated  as  follows: The number of low
19    income pupils shall increase the weighted ADA by .53 for each
20    student adjusted  by  dividing  the  percent  of  low  income
21    eligible  pupils in the district by the ratio of eligible low
22    income pupils in the State to the  best  3  months'  weighted
23    average  daily  attendance  in the State.  In no case may the
24    adjustment under this paragraph result in a greater weighting
25    than .625 for each eligible low income student.   The  number
26    of  low  income  eligible  pupils  in a district shall be the
27    low-income eligible count from the  most  recently  available
28    federal  census  and  the  weighted  average daily attendance
29    shall be calculated in accordance with the  other  provisions
30    of this paragraph.
31        (o)  Any school district which fails for any given school
32    year  to maintain school as required by law, or to maintain a
33    recognized school is not eligible to  file  for  such  school
34    year  any  claim  upon  the  common  school fund.  In case of
HB1269 Enrolled            -136-               LRB9001000EGfg
 1    nonrecognition of one or more attendance centers in a  school
 2    district otherwise operating recognized schools, the claim of
 3    the  district  shall  be  reduced in the proportion which the
 4    average daily attendance in the attendance center or  centers
 5    bear  to the average daily attendance in the school district.
 6    A "recognized school" means any public school which meets the
 7    standards as established for recognition by the  State  Board
 8    of  Education.   A  school  district or attendance center not
 9    having recognition status at the end  of  a  school  term  is
10    entitled to receive State aid payments due upon a legal claim
11    which was filed while it was recognized.
12        (p)  School  district claims filed under this Section are
13    subject to Sections 18-9, 18-10 and 18-12, except  as  herein
14    otherwise provided.
15        (q)  The  State  Board of Education shall secure from the
16    Department of Revenue the value as equalized or  assessed  by
17    the  Department  of  Revenue of all taxable property of every
18    school district together with the applicable tax rate used in
19    extending taxes for the funds of the district as of September
20    30 of the previous year.  The Department of Revenue shall add
21    to the equalized assessed value of all  taxable  property  of
22    each  school district situated entirely or partially within a
23    county with 2,000,000 or more inhabitants an amount equal  to
24    the  total  amount  by which the homestead exemptions allowed
25    under Sections 15-170 and 15-175 of the Property Tax Code for
26    real property situated in that school  district  exceeds  the
27    total  amount  that  would  have  been allowed in that school
28    district as homestead exemptions under those Sections if  the
29    maximum  reduction  under  Section 15-170 of the Property Tax
30    Code was $2,000  and  the  maximum  reduction  under  Section
31    15-175 of the Property Tax Code was $3,500.  The county clerk
32    of  any  county  with  2,000,000  or  more  inhabitants shall
33    annually calculate and certify to  the  Department  for  each
34    school  district  all homestead exemption amounts required by
HB1269 Enrolled            -137-               LRB9001000EGfg
 1    this amendatory Act of 1992.  In a new district which has not
 2    had any tax rates yet determined for extension  of  taxes,  a
 3    leveled uniform rate shall be computed from the latest amount
 4    of  the  fund taxes extended on the several areas within such
 5    new district.
 6        (r)  If a school district operates  a  full  year  school
 7    under  Section  10-19.1,  the general state aid to the school
 8    district shall be determined by the State Board of  Education
 9    in accordance with this Section as near as may be applicable.
10        2.  New  or  recomputed  claim.  The  general  State  aid
11    entitlement for a newly created school district or a district
12    which has annexed an entire school district shall be computed
13    using   attendance,   compensatory  pupil  counts,  equalized
14    assessed valuation, and tax rate data which would  have  been
15    used  had the district been in existence for 3 years. General
16    State aid entitlements shall  not  be  recomputed  except  as
17    permitted herein.
18        3.  Impaction.   Impaction  payments  shall  be  made  as
19    provided for in Section 18-4.2.
20        4.  Summer  school.  Summer school payments shall be made
21    as provided in Section 18-4.3.
22        5.  Computation of State aid.  The State grant  shall  be
23    determined as follows:
24        (a)  The State shall guarantee the amount of money that a
25    district's operating tax rate as limited in other Sections of
26    this  Act  would produce if every district maintaining grades
27    kindergarten through 12 had an equalized  assessed  valuation
28    equal  to  $74,791  per  weighted  ADA  pupil; every district
29    maintaining grades kindergarten through 8  had  an  equalized
30    assessed  valuation  of  $108,644 per weighted ADA pupil; and
31    every  district  maintaining  grades  9  through  12  had  an
32    equalized assessed valuation of  $187,657  per  weighted  ADA
33    pupil.   The  State  Board  of  Education  shall  adjust  the
34    equalized  assessed  valuation   amounts   stated   in   this
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 1    paragraph,  if  necessary,  to  conform  to the amount of the
 2    appropriation approved for any fiscal year.
 3        (b)  The operating tax rate to be used shall  consist  of
 4    all district taxes extended for all purposes except community
 5    college educational purposes for the payment of tuition under
 6    Section  6-1  of  the  Public Community College Act, Bond and
 7    Interest,  Summer  School,  Rent,  Capital  Improvement   and
 8    Vocational  Education  Building.   Any  district may elect to
 9    exclude Transportation from the calculation of its  operating
10    tax  rate.  Districts  may  include  taxes  extended  for the
11    payment of principal and interest on bonds issued  under  the
12    provisions  of  Sections  17-2.11a and 20-2 at a rate of .05%
13    per year for  each  purpose  or  the  actual  rate  extended,
14    whichever is less.
15        (c)  For  calculation  of  aid  under this Act a district
16    shall use the combined authorized tax rates of all funds  not
17    exempt  in (b) above, not to exceed 2.76% of the value of all
18    its  taxable  property  as  equalized  or  assessed  by   the
19    Department   of  Revenue  for  districts  maintaining  grades
20    kindergarten through 12;  1.90%  of  the  value  of  all  its
21    taxable  property  as equalized or assessed by the Department
22    of Revenue  for  districts  maintaining  grades  kindergarten
23    through  8  only;  1.10%  of  the  value  of  all its taxable
24    property as  equalized  or  assessed  by  the  Department  of
25    Revenue  for  districts maintaining grades 9 through 12 only.
26    A district may, however, as provided in Article 17,  increase
27    its  operating  tax  rate  above the maximum rate provided in
28    this subsection without affecting the amount of State aid  to
29    which it is entitled under this Act.
30        (d) (1)  For  districts  maintaining  grades kindergarten
31    through 12  with  an  operating  tax  rate  as  described  in
32    subsections  5(b)  and  (c) of less than 2.18%, and districts
33    maintaining grades kindergarten through 8 with  an  operating
34    tax  rate  of less than 1.28%, State aid shall be computed by
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 1    multiplying the difference between the  guaranteed  equalized
 2    assessed  valuation per weighted ADA pupil in subsection 5(a)
 3    and the equalized assessed valuation per weighted  ADA  pupil
 4    in  the district by the operating tax rate, multiplied by the
 5    weighted average daily attendance of the district;  provided,
 6    however,  that  for  the 1989-1990 school year only, a school
 7    district maintaining  grades  kindergarten  through  8  whose
 8    operating  tax rate with reference to which its general State
 9    aid for the 1989-1990 school year is determined is less  than
10    1.28%  and  more  than 1.090%, and which had an operating tax
11    rate of 1.28% or more for the previous year, shall  have  its
12    general  State  aid  computed  according to the provisions of
13    subsection 5(d)(2).
14        (2)  For  districts   maintaining   grades   kindergarten
15    through  12  with  an  operating  tax  rate  as  described in
16    subsection 5(b) and (c) of 2.18% and  above,  the  State  aid
17    shall  be  computed  as provided in subsection (d) (1) but as
18    though the district had an operating tax rate  of  2.76%;  in
19    K-8  districts with an operating tax rate of 1.28% and above,
20    the State aid shall be computed as provided in subsection (d)
21    (1) but as though the district had an operating tax  rate  of
22    1.90%; and in 9-12 districts, the State aid shall be computed
23    by   multiplying   the   difference  between  the  guaranteed
24    equalized  assessed  valuation  per  weighted  average  daily
25    attendance  pupil  in  subsection  5(a)  and  the   equalized
26    assessed  valuation  per  weighted  average  daily attendance
27    pupil in the district by  the  operating  tax  rate,  not  to
28    exceed  1.10%,  multiplied  by  the  weighted  average  daily
29    attendance  of  the  district.   State aid computed under the
30    provisions of this subsection (d) (2)  shall  be  treated  as
31    separate  from  all  other  payments  made  pursuant  to this
32    Section.  The State Comptroller  and  State  Treasurer  shall
33    transfer  from  the General Revenue Fund to the Common School
34    Fund the amounts necessary to permit these claims to be  paid
HB1269 Enrolled            -140-               LRB9001000EGfg
 1    in  equal  installments  along  with other State aid payments
 2    remaining to be made for the 1983-1984 school year under this
 3    Section.
 4        (3)  For  any  school  district  whose   1995   equalized
 5    assessed  valuation  is  at  least  6%  less  than  its  1994
 6    equalized  assessed valuation as the result of a reduction in
 7    the equalized assessed  valuation  of  the  taxable  property
 8    within  such  district  of  any  one  taxpayer  whose taxable
 9    property within the district has a  1994  equalized  assessed
10    valuation  constituting  at  least  20% of the 1994 equalized
11    assessed  valuation  of  all  taxable  property  within   the
12    district,  the  1996-97  State  aid of such district shall be
13    computed using its 1995 equalized assessed valuation.
14        (4)  For  any  school  district  whose   1988   equalized
15    assessed  valuation  is  55%  or  less  of its 1981 equalized
16    assessed valuation, the 1990-91 State aid  of  such  district
17    shall  be computed by multiplying the 1988 equalized assessed
18    valuation by a factor of .8.  Any such school district  which
19    is  reorganized  effective  for the 1991-92 school year shall
20    use the formula provided in this subparagraph for purposes of
21    the calculation made  pursuant  to  subsection  (m)  of  this
22    Section.
23        (e)  The  amount of State aid shall be computed under the
24    provisions of subsections  5(a)  through  5(d)  provided  the
25    equalized  assessed  valuation per weighted ADA pupil is less
26    than .87 of the amounts in subsection 5(a). If the  equalized
27    assessed  valuation  per  weighted  ADA  pupil is equal to or
28    greater than .87 of the amounts in subsection 5(a), the State
29    aid shall be computed  under  the  provisions  of  subsection
30    5(f).
31        (f)  If the equalized assessed valuation per weighted ADA
32    pupil  is  equal  to  or  greater  than .87 of the amounts in
33    subsection 5(a), the State aid per weighted ADA  pupil  shall
34    be  computed  by  multiplying  the  product  of .13 times the
HB1269 Enrolled            -141-               LRB9001000EGfg
 1    maximum per pupil amount computed  under  the  provisions  of
 2    subsections  5(a)  through  5(d)  by  an  amount equal to the
 3    quotient of .87 times the equalized  assessed  valuation  per
 4    weighted  ADA  pupil  in  subsection  5(a)  for  that type of
 5    district divided by  the  district  equalized  valuation  per
 6    weighted  ADA  pupil  except  in  no  case shall the district
 7    receive State aid per weighted ADA pupil  of  less  than  .07
 8    times  the  maximum  per  pupil  amount  computed  under  the
 9    provisions of subsections 5(a) through 5(d).
10        (g)  In  addition  to  the  above  grants,  summer school
11    grants shall be made based upon the calculation  as  provided
12    in subsection 4 of this Section.
13        (h)  The  board  of  any  district  receiving  any of the
14    grants provided for in this Section may apply those funds  to
15    any  fund  so  received for which that board is authorized to
16    make expenditures by law.
17        (i) (1) (a)  In school districts with  an  average  daily
18    attendance  of  50,000  or more, the amount which is provided
19    under subsection 1(n) of this Section by the application of a
20    base Chapter 1 weighting factor of .375 shall be  distributed
21    to  the  attendance centers within the district in proportion
22    to the number of pupils enrolled at  each  attendance  center
23    who  are eligible to receive free or reduced-price lunches or
24    breakfasts under the federal Child Nutrition Act of 1966  and
25    under  the  National  School Lunch Act during the immediately
26    preceding school year.  The  amount  of  State  aid  provided
27    under  subsection  1(n) of this Section by the application of
28    the Chapter 1 weighting factor in excess  of  .375  shall  be
29    distributed  to the attendance centers within the district in
30    proportion to the total enrollment at each attendance center.
31    Beginning with school year  1989-90,  and  each  school  year
32    thereafter, all funds provided under subsection 1 (n) of this
33    Section  by the application of the Chapter 1 weighting factor
34    which are in excess of the level of  non-targeted  Chapter  1
HB1269 Enrolled            -142-               LRB9001000EGfg
 1    funds   in  school  year  1988-89  shall  be  distributed  to
 2    attendance centers, and only to  attendance  centers,  within
 3    the  district  in proportion to the number of pupils enrolled
 4    at each attendance center who are eligible to receive free or
 5    reduced price lunches or breakfasts under the  Federal  Child
 6    Nutrition  Act and under the National School Lunch Act during
 7    the immediately preceding school year.  Beginning  in  school
 8    year  1989-90,  25%  of the previously non-targeted Chapter 1
 9    funds as established for school year 1988-89  shall  also  be
10    distributed to the attendance centers, and only to attendance
11    centers,  in  the  district  in  proportion  to the number of
12    pupils enrolled at each attendance center who are eligible to
13    receive free or reduced price lunches or breakfasts under the
14    Federal Child Nutrition Act and  under  the  National  School
15    Lunch  Act  during  the immediately preceding school year; in
16    school year  1990-91,  50%  of  the  previously  non-targeted
17    Chapter  1 funds as established for school year 1988-89 shall
18    be distributed to attendance centers, and only to  attendance
19    centers,  in  the  district  in  proportion  to the number of
20    pupils enrolled at each attendance center who are eligible to
21    receive such free or  reduced  price  lunches  or  breakfasts
22    during  the immediately preceding school year; in school year
23    1991-92, 75% of the previously non-targeted Chapter  1  funds
24    as  established  for school year 1988-89 shall be distributed
25    to attendance centers, and only to attendance centers, in the
26    district in proportion to the number of  pupils  enrolled  at
27    each  attendance center who are eligible to receive such free
28    or reduced price lunches or breakfasts during the immediately
29    preceding school year; in school year 1992-93 and thereafter,
30    all funds provided under subsection 1 (n) of this Section  by
31    the  application  of  the Chapter 1 weighting factor shall be
32    distributed to attendance centers,  and  only  to  attendance
33    centers,  in  the  district  in  proportion  to the number of
34    pupils enrolled at each attendance center who are eligible to
HB1269 Enrolled            -143-               LRB9001000EGfg
 1    receive free or reduced price lunches or breakfasts under the
 2    Federal Child Nutrition Act and  under  the  National  School
 3    Lunch  Act  during  the  immediately  preceding  school year;
 4    provided, however, that the distribution  formula  in  effect
 5    beginning with school year 1989-90 shall not be applicable to
 6    such  portion of State aid provided under subsection 1 (n) of
 7    this Section by the application of the  Chapter  1  weighting
 8    formula  as  is  set  aside  and  appropriated  by the school
 9    district for the purpose of providing desegregation  programs
10    and  related  transportation to students (which portion shall
11    not exceed 5% of the total  amount  of  State  aid  which  is
12    provided   under   subsection   1  (n)  of  this  Section  by
13    application of the Chapter  1  weighting  formula),  and  the
14    relevant  percentages  shall  be  applied  to  the  remaining
15    portion  of  such  State  aid.   The  distribution  of  these
16    portions  of  general  State  aid  among  attendance  centers
17    according  to these requirements shall not be compensated for
18    or contravened by adjustments of the  total  of  other  funds
19    appropriated  to  any  attendance centers.   (b) The Board of
20    Education shall utilize funding from one or  several  sources
21    in  order to fully implement this provision annually prior to
22    the opening of school.  The Board of  Education  shall  apply
23    savings  from  reduced  administrative  costs  required under
24    Section 34-43.1 and growth in non-Chapter 1 State  and  local
25    funds  to  assure that all attendance centers receive funding
26    to replace losses due to redistribution of Chapter 1 funding.
27    The distribution formula and funding to replace losses due to
28    the distribution formula shall occur, in full, using any  and
29    all  sources available, including, if necessary, revenue from
30    administrative reductions beyond those  required  in  Section
31    34-43.1,  in  order to provide the necessary funds.  (c) Each
32    attendance center shall be provided by the school district  a
33    distribution  of  noncategorical  funds and other categorical
34    funds to which an attendance center is entitled under law  in
HB1269 Enrolled            -144-               LRB9001000EGfg
 1    order  that  the  State  aid  provided  by application of the
 2    Chapter 1 weighting factor and  required  to  be  distributed
 3    among  attendance  centers  according  to the requirements of
 4    this  paragraph  supplements  rather   than   supplants   the
 5    noncategorical  funds and other categorical funds provided by
 6    the   school   district   to    the    attendance    centers.
 7    Notwithstanding  the  foregoing provisions of this subsection
 8    5(i)(1) or any other law to the contrary, beginning with  the
 9    1995-1996  school  year  and for each school year thereafter,
10    the board of a school district to  which  the  provisions  of
11    this  subsection  apply  shall  be  required  to  allocate or
12    provide to attendance centers of the  district  in  any  such
13    school  year,  from  the  State aid provided for the district
14    under this Section by application of the Chapter 1  weighting
15    factor,  an aggregate amount of not less than $261,000,000 of
16    State Chapter 1 funds. Any State  Chapter  1  funds  that  by
17    reason  of  the provisions of this paragraph are not required
18    to be allocated and provided to  attendance  centers  may  be
19    used  and  appropriated  by the board of the district for any
20    lawful school purpose.    Chapter  1  funds  received  by  an
21    attendance   center   (except   those  funds  set  aside  for
22    desegregation  programs   and   related   transportation   to
23    students) shall be used on the schedule cited in this Section
24    at  the  attendance center at the discretion of the principal
25    and local school council for programs to improve  educational
26    opportunities  at  qualifying  schools  through the following
27    programs and services:  early  childhood  education,  reduced
28    class  size  or  improved  adult  to student classroom ratio,
29    enrichment   programs,   remedial   assistance,    attendance
30    improvement  and  other educationally beneficial expenditures
31    which supplement the regular and basic programs as determined
32    by the State Board of Education.  Chapter 1 funds  shall  not
33    be expended for any political or lobbying purposes as defined
34    by board rule. (d) Each district subject to the provisions of
HB1269 Enrolled            -145-               LRB9001000EGfg
 1    this  paragraph  shall  submit an acceptable plan to meet the
 2    educational needs of disadvantaged  children,  in  compliance
 3    with  the  requirements of this paragraph, to the State Board
 4    of Education prior to July 15 of each year. This  plan  shall
 5    be  consistent  with  the  decisions of local school councils
 6    concerning  the  school  expenditure   plans   developed   in
 7    accordance  with  part  4 of Section 34-2.3.  The State Board
 8    shall approve or reject the plan within  60  days  after  its
 9    submission.   If the plan is rejected the district shall give
10    written notice of intent to modify the plan within 15 days of
11    the notification of rejection and then submit a modified plan
12    within 30 days after the date of the written notice of intent
13    to modify.  Districts may amend approved  plans  pursuant  to
14    rules promulgated by the State Board of Education.
15        Upon  notification  by  the State Board of Education that
16    the district has not submitted a plan prior to July 15  or  a
17    modified  plan  within  the time period specified herein, the
18    State aid funds affected by said plan or modified plan  shall
19    be  withheld  by the State Board of Education until a plan or
20    modified plan is submitted.
21        If  the  district  fails  to  distribute  State  aid   to
22    attendance  centers  in accordance with an approved plan, the
23    plan for the following year shall allocate funds, in addition
24    to the funds otherwise  required  by  this  subparagraph,  to
25    those  attendance  centers  which were underfunded during the
26    previous year in amounts equal to such underfunding.
27        For  purposes  of  determining   compliance   with   this
28    subsection  in  relation  to  Chapter  1  expenditures,  each
29    district  subject  to the provisions of this subsection shall
30    submit as a separate document by December 1 of  each  year  a
31    report  of  Chapter  1 expenditure data for the prior year in
32    addition to any modification of its current plan.  If  it  is
33    determined  that  there has been a failure to comply with the
34    expenditure   provisions   of   this   subsection   regarding
HB1269 Enrolled            -146-               LRB9001000EGfg
 1    contravention or supplanting,  the  State  Superintendent  of
 2    Education  shall,  within  60  days of receipt of the report,
 3    notify the district and any affected  local  school  council.
 4    The  district  shall  within  45  days  of  receipt  of  that
 5    notification  inform the State Superintendent of Education of
 6    the remedial or corrective action to be  taken,  whether   by
 7    amendment  of the current plan, if feasible, or by adjustment
 8    in the plan for the following year.  Failure to  provide  the
 9    expenditure   report  or  the  notification  of  remedial  or
10    corrective action in  a  timely  manner  shall  result  in  a
11    withholding of the affected funds.
12        The  State  Board of Education shall promulgate rules and
13    regulations to implement the provisions  of  this  subsection
14    5(i)(1).  No funds shall be released under subsection 1(n) of
15    this Section or under this subsection 5(i)(1) to any district
16    which has not submitted a plan which has been approved by the
17    State Board of Education.
18        (2)  School districts with an average daily attendance of
19    more  than 1,000 and less than 50,000 and having a low income
20    pupil weighting factor in excess of .53 shall submit  a  plan
21    to  the  State Board of Education prior to October 30 of each
22    year for the use of the funds resulting from the  application
23    of  subsection  1(n)  of  this Section for the improvement of
24    instruction  in  which  priority  is  given  to  meeting  the
25    education needs of disadvantaged children.  Such  plan  shall
26    be   submitted  in  accordance  with  rules  and  regulations
27    promulgated by the State Board of Education.
28        (j)  For the purposes of calculating State aid under this
29    Section, with respect to any part of a school district within
30    a  redevelopment  project  area  in  respect   to   which   a
31    municipality  has  adopted tax increment allocation financing
32    pursuant to the Tax Increment Allocation  Redevelopment  Act,
33    Sections   11-74.4-1   through  11-74.4-11  of  the  Illinois
34    Municipal Code or the Industrial Jobs Recovery Law,  Sections
HB1269 Enrolled            -147-               LRB9001000EGfg
 1    11-74.6-1  through 11-74.6-50 of the Illinois Municipal Code,
 2    no part of the current equalized assessed valuation  of  real
 3    property   located   in   any  such  project  area  which  is
 4    attributable to an increase above the total initial equalized
 5    assessed  valuation  of  such  property  shall  be  used   in
 6    computing  the  equalized assessed valuation per weighted ADA
 7    pupil in the district, until such time as  all  redevelopment
 8    project   costs  have  been  paid,  as  provided  in  Section
 9    11-74.4-8 of the Tax Increment Allocation  Redevelopment  Act
10    or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
11    For the purpose of computing the equalized assessed valuation
12    per  weighted  ADA  pupil  in  the district the total initial
13    equalized  assessed  valuation  or  the   current   equalized
14    assessed  valuation,  whichever is lower, shall be used until
15    such time as all redevelopment project costs have been paid.
16        (k)  For a school district operating under the  financial
17    supervision  of  an  Authority created under Article 34A, the
18    State aid otherwise  payable  to  that  district  under  this
19    Section,  other  than  State  aid  attributable  to Chapter 1
20    students, shall be reduced by an amount equal to  the  budget
21    for  the  operations  of  the  Authority  as certified by the
22    Authority to the State Board  of  Education,  and  an  amount
23    equal  to  such  reduction  shall  be  paid  to the Authority
24    created for such district for its operating expenses  in  the
25    manner  provided  in  Section  18-11.  The remainder of State
26    school aid for any such district shall be paid in  accordance
27    with Article 34A when that Article provides for a disposition
28    other than that provided by this Article.
29        (l)  For  purposes  of  calculating  State aid under this
30    Section,  the  equalized  assessed  valuation  for  a  school
31    district used to compute State aid  shall  be  determined  by
32    adding  to the real property equalized assessed valuation for
33    the district an amount computed by  dividing  the  amount  of
34    money  received  by  the district under the provisions of "An
HB1269 Enrolled            -148-               LRB9001000EGfg
 1    Act in relation to  the  abolition  of  ad  valorem  personal
 2    property  tax  and the replacement of revenues lost thereby",
 3    certified August 14, 1979, by the  total  tax  rate  for  the
 4    district.  For  purposes  of  this  subsection 1976 tax rates
 5    shall be used for school districts in the county of Cook  and
 6    1977  tax  rates  shall  be  used for school districts in all
 7    other counties.
 8        (m) (1)  For a new school district  formed  by  combining
 9    property   included  totally  within  2  or  more  previously
10    existing school districts, for its first year of existence or
11    if the new district was formed after  October  31,  1982  and
12    prior  to  September  23,  1985,  for  the  year  immediately
13    following  September 23, 1985, the State aid calculated under
14    this Section shall be computed for the new district  and  for
15    the  previously  existing  districts  for  which  property is
16    totally included within the new district.  If the computation
17    on the basis of the previously existing districts is greater,
18    a supplementary payment equal to the difference shall be made
19    for the first 3 years of existence of the new district or  if
20    the  new district was formed after October 31, 1982 and prior
21    to September 23, 1985, for the 3 years immediately  following
22    September 23, 1985.
23        (2)  For  a  school  district  which  annexes  all of the
24    territory of one or more entire other school  districts,  for
25    the   first  year  during  which  the  change  of  boundaries
26    attributable to such annexation  becomes  effective  for  all
27    purposes  as  determined under Section 7-9 or 7A-8, the State
28    aid calculated under this Section shall be computed  for  the
29    annexing district as constituted after the annexation and for
30    the  annexing  and each annexed district as constituted prior
31    to the annexation; and if the computation on the basis of the
32    annexing and annexed districts as constituted  prior  to  the
33    annexation  is  greater, a supplementary payment equal to the
34    difference shall be made for the first 3 years  of  existence
HB1269 Enrolled            -149-               LRB9001000EGfg
 1    of  the  annexing  school  district  as constituted upon such
 2    annexation.
 3        (3)  For 2 or more school districts which  annex  all  of
 4    the  territory  of one or more entire other school districts,
 5    and for 2 or more community unit districts which result  upon
 6    the  division  (pursuant  to petition under Section 11A-2) of
 7    one or more other unit school districts into 2 or more  parts
 8    and  which  together include all of the parts into which such
 9    other unit school district or districts are so  divided,  for
10    the   first  year  during  which  the  change  of  boundaries
11    attributable to such annexation or division becomes effective
12    for all purposes as determined under Section 7-9  or  11A-10,
13    as  the  case  may  be,  the  State aid calculated under this
14    Section shall be computed  for  each  annexing  or  resulting
15    district  as constituted after the annexation or division and
16    for each annexing and annexed district, or for each resulting
17    and divided district, as constituted prior to the  annexation
18    or  division;  and  if  the  aggregate of the State aid as so
19    computed  for  the  annexing  or   resulting   districts   as
20    constituted after the annexation or division is less than the
21    aggregate  of  the  State aid as so computed for the annexing
22    and annexed districts,  or  for  the  resulting  and  divided
23    districts,   as   constituted  prior  to  the  annexation  or
24    division,  then  a  supplementary  payment   equal   to   the
25    difference  shall  be made and allocated between or among the
26    annexing or resulting districts,  as  constituted  upon  such
27    annexation  or  division,  for  the  first  3  years of their
28    existence.  The total difference payment shall  be  allocated
29    between  or  among the annexing or resulting districts in the
30    same ratio as the pupil enrollment from that portion  of  the
31    annexed  or divided district or districts which is annexed to
32    or included in each such annexing or resulting district bears
33    to the total pupil enrollment  from  the  entire  annexed  or
34    divided  district  or  districts, as such pupil enrollment is
HB1269 Enrolled            -150-               LRB9001000EGfg
 1    determined for the school year last ending prior to the  date
 2    when  the change of boundaries attributable to the annexation
 3    or division becomes effective for all purposes.   The  amount
 4    of  the total difference payment and the amount thereof to be
 5    allocated to the annexing or  resulting  districts  shall  be
 6    computed  by  the  State  Board  of Education on the basis of
 7    pupil enrollment and other data which shall be  certified  to
 8    the State Board of Education, on forms which it shall provide
 9    for  that  purpose, by the regional superintendent of schools
10    for each educational service region in which the annexing and
11    annexed districts, or resulting  and  divided  districts  are
12    located.
13        (4)  If  a unit school district annexes all the territory
14    of another unit school district effective  for  all  purposes
15    pursuant  to  Section 7-9 on July 1, 1988, and if part of the
16    annexed territory is detached within 90 days  after  July  1,
17    1988,  then  the detachment shall be disregarded in computing
18    the supplementary State aid payments under this paragraph (m)
19    for the entire 3 year period and the supplementary State  aid
20    payments shall not be diminished because of the detachment.
21        (5)  Any  supplementary State aid payment made under this
22    paragraph (m) shall be treated as  separate  from  all  other
23    payments made pursuant to this Section.
24        (n)  For the purposes of calculating State aid under this
25    Section, the real property equalized assessed valuation for a
26    school district used to compute State aid shall be determined
27    by  subtracting  from the real property value as equalized or
28    assessed by the Department of Revenue  for  the  district  an
29    amount  computed  by  dividing the amount of any abatement of
30    taxes under Section 18-170 of the Property Tax  Code  by  the
31    maximum  operating  tax rates specified in subsection 5(c) of
32    this Section and an amount computed by dividing the amount of
33    any abatement of taxes under subsection (a) of Section 18-165
34    of the Property Tax Code by the maximum operating  tax  rates
HB1269 Enrolled            -151-               LRB9001000EGfg
 1    specified in subsection 5(c) of this Section.
 2        (o)  Notwithstanding   any   other   provisions  of  this
 3    Section, for the 1996-1997 school  year  the  amount  of  the
 4    aggregate  general  State  aid  entitlement  that is received
 5    under this Section by each school district  for  that  school
 6    year  shall  be  not  less  than  the amount of the aggregate
 7    general State  aid  entitlement  that  was  received  by  the
 8    district under this Section for the 1995-1996 school year. If
 9    a  school  district  is to receive an aggregate general State
10    aid entitlement under this Section for the  1996-1997  school
11    year  that  is  less than the amount of the aggregate general
12    State aid entitlement that the district received  under  this
13    Section  for  the  1995-1996 school year, the school district
14    shall also receive, from a separate  appropriation  made  for
15    purposes  of this paragraph (o), a supplementary payment that
16    is equal to  the  amount  by  which  the  general  State  aid
17    entitlement  received  by the district under this Section for
18    the 1995-1996 school  year  exceeds  the  general  State  aid
19    entitlement  that  the  district  is  to  receive  under this
20    Section  for  the  1996-1997  school  year.   If  the  amount
21    appropriated for supplementary payments to  school  districts
22    under  this  paragraph  (o) is insufficient for that purpose,
23    the supplementary payments  that  districts  are  to  receive
24    under  this  paragraph  shall  be  prorated  according to the
25    aggregate amount of the appropriation made  for  purposes  of
26    this paragraph.
27        B.  In calculating the amount to be paid to the governing
28    board  of  a  public  university  that  operates a laboratory
29    school under this Section or to any alternative  school  that
30    is  operated by a regional superintendent, the State Board of
31    Education shall require by rule such  reporting  requirements
32    as it deems necessary.
33        As  used  in  this  Section,  "laboratory school" means a
34    public school which is  created  and  operated  by  a  public
HB1269 Enrolled            -152-               LRB9001000EGfg
 1    university and approved by the State Board of Education.  The
 2    governing  board  of a public university which receives funds
 3    from the State Board under this subsection B may not increase
 4    the number of students enrolled in its laboratory school from
 5    a single district, if that district is already sending 50  or
 6    more  students,  except  under a mutual agreement between the
 7    school board of a student's district  of  residence  and  the
 8    university   which   operates   the   laboratory  school.   A
 9    laboratory school may not  have  more  than  1,000  students,
10    excluding  students  with disabilities in a special education
11    program.
12        As used in this Section,  "alternative  school"  means  a
13    public  school  which  is  created and operated by a Regional
14    Superintendent of Schools and approved by the State Board  of
15    Education.  Such  alternative  schools  may  offer courses of
16    instruction for which  credit  is  given  in  regular  school
17    programs,  courses  to  prepare  students for the high school
18    equivalency testing program or  vocational  and  occupational
19    training.
20        Each  laboratory  and  alternative  school shall file, on
21    forms provided by the State Superintendent of  Education,  an
22    annual  State  aid  claim  which  states  the  average  daily
23    attendance  of  the  school's  students by month.  The best 3
24    months' average daily attendance shall be computed  for  each
25    school.   The  weighted  average  daily  attendance  shall be
26    computed and the weighted average daily  attendance  for  the
27    school's  most recent 3 year average shall be compared to the
28    most  recent  weighted  average  daily  attendance,  and  the
29    greater of the 2 shall be used for the calculation under this
30    subsection B.  The general State  aid  entitlement  shall  be
31    computed  by  multiplying  the  school's student count by the
32    foundation level as determined under this Section.
33    (Source: P.A. 88-9; 88-45;  88-89;  88-386;  88-511;  88-537;
34    88-555;  88-641;  88-670,  eff. 12-2-94; 89-15, eff. 5-30-95;
HB1269 Enrolled            -153-               LRB9001000EGfg
 1    89-235, eff.  8-4-95;  89-397,  eff.  8-20-95;  89-610,  eff.
 2    8-6-96;  89-618,  eff.  8-9-96;  89-626, eff. 8-9-96; 89-679,
 3    eff. 8-16-96; revised 9-10-96.)
 4        (105 ILCS 5/24-2) (from Ch. 122, par. 24-2)
 5        Sec. 24-2.  Holidays.  Teachers shall not be required  to
 6    teach  on  Saturdays;  nor  shall  teachers  or  other school
 7    employees, other than noncertificated school employees  whose
 8    presence  is  necessary  because  of  an emergency or for the
 9    continued operation and maintenance of school  facilities  or
10    property, be required to work on legal school holidays, which
11    are  January  1, New Year's Day; the third Monday in January,
12    the Birthday of Dr. Martin Luther King, Jr.; February 12, the
13    Birthday of President Abraham Lincoln; the  first  Monday  in
14    March  (to  be  known  as  Casimir  Pulaski's birthday); Good
15    Friday; the day designated as Memorial Day  by  federal  law;
16    July  4,  Independence  Day;  the  first Monday in September,
17    Labor Day;  the  second  Monday  in  October,  Columbus  Day;
18    November 11, Veteran's Day; the Thursday in November commonly
19    called  Thanksgiving  Day;  and  December  25, Christmas Day.
20    School boards may grant special holidays  whenever  in  their
21    judgment  such  action  is  advisable,  except that no school
22    board or board of education in a  school  district  having  a
23    population  exceeding  500,000 the board of education may not
24    designate or observe as a legal or special holiday  on  which
25    teachers  or  other school employees are not required to work
26    the days on  which  general  elections  for  members  of  the
27    Illinois  House  of  Representatives  are  held. No deduction
28    shall be made from the  time  or  compensation  of  a  school
29    employee on account of any legal or special holiday.
30        Commemorative   holidays,   which   recognize   specified
31    patriotic, civic, cultural or historical persons, activities,
32    or  events,  are  regular school days. Commemorative holidays
33    are: January 28 (to be known as  Christa  McAuliffe  Day  and
HB1269 Enrolled            -154-               LRB9001000EGfg
 1    observed  as  a commemoration of space exploration), February
 2    15 (the birthday of Susan B. Anthony), March 29 (Viet Nam War
 3    Veterans Day), the school day immediately preceding Veteran's
 4    Day (Korean War Veterans Day),  October  1  (Recycling  Day),
 5    December  7  (Pearl  Harbor  Veterans  Day)  and  any  day so
 6    appointed by the President or Governor.   School  boards  may
 7    establish  commemorative  holidays whenever in their judgment
 8    such  action  is  advisable.  School  boards  shall   include
 9    instruction  relative to commemorated persons, activities, or
10    events on the commemorative holiday  or  at  any  other  time
11    during  the  school  year  and at any point in the curriculum
12    when such instruction may be deemed  appropriate.  The  State
13    Board of Education shall prepare and make available to school
14    boards   instructional  materials  relative  to  commemorated
15    persons, activities, or events which may be  used  by  school
16    boards  in conjunction with any instruction provided pursuant
17    to this paragraph.
18        City of Chicago School District 299 shall observe March 4
19    of each year as a commemorative holiday.  This holiday  shall
20    be  known  as Mayors' Day which shall be a day to commemorate
21    and be reminded of the past Chief Executive Officers  of  the
22    City  of Chicago, and in particular the late Mayor Richard J.
23    Daley and the late Mayor Harold Washington.  If March 4 falls
24    on a Saturday or Sunday, Mayors' Day shall be observed on the
25    following Monday.
26    (Source: P.A.  89-610,  eff.  8-6-96;  89-622,  eff.  8-9-96;
27    revised 9-9-96.)
28        (105 ILCS 5/34-2.3) (from Ch. 122, par. 34-2.3)
29        Sec.  34-2.3.  Local school councils - Powers and duties.
30    Each local school council shall have and exercise, consistent
31    with the provisions of this Article and the powers and duties
32    of the board of education, the following powers and duties:
33        1.  To evaluate the performance of the principal  of  the
HB1269 Enrolled            -155-               LRB9001000EGfg
 1    attendance   center  taking  into  consideration  the  annual
 2    evaluation  of  the  principal  conducted  by   the   general
 3    superintendent  pursuant to subsection (h) of Section 34-8.3,
 4    to determine in the manner  provided  by  subsection  (c)  of
 5    Section  34-2.2  whether  the  performance  contract  of  the
 6    principal  shall  be  renewed,  and to directly select in the
 7    manner provided by subsection (c) of  Section  34-2.2  a  new
 8    principal  (including  a  new principal to fill a vacancy) --
 9    without submitting any list of candidates for  that  position
10    to  the  general superintendent as provided in paragraph 2 of
11    this Section -- to serve under a 4 year performance contract;
12    provided  that  (i)  the   determination   of   whether   the
13    principal's  performance  contract is to be renewed and -- in
14    cases where such performance contract is  not  renewed  --  a
15    direct  selection  of  a  new principal -- to serve under a 4
16    year performance contract shall be made by the  local  school
17    council by April 15 of the calendar year in which the current
18    performance  contract  of  the  principal expires, and (ii) a
19    direct selection  by  the  local  school  council  of  a  new
20    principal  to  fill  a  vacancy  under  a  4 year performance
21    contract shall be made within 90 days  after  the  date  such
22    vacancy occurs.  A Council shall be required, if requested by
23    the  principal,  to  provide  in  writing the reasons for the
24    council's not renewing the principal's contract.
25        2.  In the event (i) the local school  council  does  not
26    renew  the  performance  contract  of  the  principal, or the
27    principal fails to receive a satisfactory rating as  provided
28    in  subsection  (h)  of  Section  34-8.3, or the principal is
29    removed for cause during the term of his or  her  performance
30    contract  in  the  manner  provided  by  Section  34-85, or a
31    vacancy in the position of principal otherwise  occurs  prior
32    to  the  expiration  of the term of a principal's performance
33    contract, and (ii) the local school council fails to directly
34    select a new principal (including a new principal to  fill  a
HB1269 Enrolled            -156-               LRB9001000EGfg
 1    vacancy)  to  serve  under a 4 year performance contract, the
 2    local school council  in  such  event  shall  submit  to  the
 3    general  superintendent  a  list of 3 candidates -- listed in
 4    the local school council's order of  preference  --  for  the
 5    position  of principal, one of which shall be selected by the
 6    general  superintendent  to  serve  as   principal   of   the
 7    attendance  center.   If  the general superintendent fails or
 8    refuses to select one of the candidates on the list to  serve
 9    as  principal  within  30 days after being furnished with the
10    candidate list, the local school council within 15 days after
11    such failure or  refusal  shall  itself  select  one  of  the
12    candidates  from  the  list  as  principal  of the attendance
13    center.  There shall be no discrimination  on  the  basis  of
14    race, sex, creed, color or disability unrelated to ability to
15    perform  in connection with the submission of candidates for,
16    and the selection of a candidate to serve as principal of  an
17    attendance  center.   No  person  shall be directly selected,
18    listed as a candidate for, or selected to serve as  principal
19    of  an  attendance center (i) if such person has been removed
20    for cause from employment by the Board or (ii) if such person
21    does not hold a valid administrative  certificate  issued  or
22    exchanged  under  Article 21 and endorsed as required by that
23    Article for the position of  principal.   A  principal  whose
24    performance   contract  is  not  renewed  as  provided  under
25    subsection  (c)  of  Section  34-2.2  may  nevertheless,   if
26    otherwise  qualified  and certified as herein provided and if
27    he or she has received a satisfactory rating as  provided  in
28    subsection  (h)  of  Section  34-8.3,  be included by a local
29    school council as one of the 3 candidates listed in order  of
30    preference  on any candidate list from which one person is to
31    be selected to serve as principal of  the  attendance  center
32    under a new performance contract.  The initial candidate list
33    required  to  be  submitted  by a local school council to the
34    general  superintendent  in  cases  where  the  local  school
HB1269 Enrolled            -157-               LRB9001000EGfg
 1    council does  not  renew  the  performance  contract  of  its
 2    principal  and  does  not  directly select a new principal to
 3    serve under a 4 year performance contract shall be  submitted
 4    not  later  than  May  1  of  the calendar year in which such
 5    performance contract expires.  In cases where a principal  is
 6    removed  for  cause  or  a  vacancy  otherwise  occurs in the
 7    position of principal and the vacancy is not filled by direct
 8    selection by the local school  council,  the  candidate  list
 9    shall be submitted by the local school council to the general
10    superintendent  not  later  than  90 days after the date such
11    removal or vacancy occurs.
12        2.5.  Whenever a vacancy in the  office  of  a  principal
13    occurs  for  any  reason,  the vacancy shall be filled in the
14    manner provided by this Section by the  selection  of  a  new
15    principal to serve under a 4 year performance contract.
16        3.  To  establish  additional  criteria to be included as
17    part of the performance contract of its  principal,  provided
18    that  such  additional criteria shall not discriminate on the
19    basis of race, sex, creed, color or disability  unrelated  to
20    ability  to  perform,  and shall not be inconsistent with the
21    uniform 4 year performance contract for principals  developed
22    by the board as provided in Section 34-8.1 of the School Code
23    or  with  other  provisions  of  this  Article  governing the
24    authority and responsibility of principals.
25        4.  To approve  the  expenditure  plan  prepared  by  the
26    principal with respect to all funds allocated and distributed
27    to  the attendance center by the Board.  The expenditure plan
28    shall be administered by the principal.  Notwithstanding  any
29    other provision of this Act or any other law, any expenditure
30    plan  approved  and  administered  under  this Section 34-2.3
31    shall be consistent with and subject  to  the  terms  of  any
32    contract  for services with a third party entered into by the
33    Chicago School Reform Board of Trustees or  the  board  under
34    this Act.
HB1269 Enrolled            -158-               LRB9001000EGfg
 1        Via a supermajority vote of 7 members of the local school
 2    council  or  8 members of a high school local school council,
 3    the Council may  transfer  allocations  pursuant  to  Section
 4    34-2.3  within  funds;  provided  that  such  a  transfer  is
 5    consistent  with  applicable  law  and  collective bargaining
 6    agreements.
 7        Beginning in fiscal year 1991 and  in  each  fiscal  year
 8    thereafter,  the  Board  may  reserve  up  to 1% of its total
 9    fiscal year budget for distribution on a prioritized basis to
10    schools throughout the  school  system  in  order  to  assure
11    adequate  programs  to  meet  the  needs  of  special student
12    populations as determined by the  Board.   This  distribution
13    shall   take   into  account  the  needs  catalogued  in  the
14    Systemwide Plan and  the  various  local  school  improvement
15    plans  of the local school councils.  Information about these
16    centrally funded programs shall be distributed to  the  local
17    school   councils  so  that  their  subsequent  planning  and
18    programming will account for these provisions.
19        Beginning in fiscal year 1991 and  in  each  fiscal  year
20    thereafter,  from  other  amounts available in the applicable
21    fiscal year budget, the  board  shall  allocate  a  lump  sum
22    amount  to  each  local school based upon such formula as the
23    board shall determine taking into account the  special  needs
24    of  the  student  body.   The  local  school  principal shall
25    develop an expenditure plan in consultation  with  the  local
26    school council, the professional personnel advisory committee
27    and  with  all  other  school  personnel,  which reflects the
28    priorities and activities as described in the school's  local
29    school improvement plan and is consistent with applicable law
30    and  collective bargaining agreements and with board policies
31    and standards; however, the local school council  shall  have
32    the  right  to request waivers of board policy from the board
33    of education and waivers of  employee  collective  bargaining
34    agreements pursuant to Section 34-8.1a.
HB1269 Enrolled            -159-               LRB9001000EGfg
 1        The  expenditure  plan  developed  by  the principal with
 2    respect to amounts available from the  fund  for  prioritized
 3    special needs programs and the allocated lump sum amount must
 4    be approved by the local school council.
 5        The  lump  sum  allocation  shall  take  into account the
 6    following principles:
 7             a.  Teachers: Each school shall be  allocated  funds
 8        equal  to  the amount appropriated in the previous school
 9        year  for  compensation  for  teachers  (regular   grades
10        kindergarten  through 12th grade) plus whatever increases
11        in compensation have  been  negotiated  contractually  or
12        through   longevity   as   provided   in  the  negotiated
13        agreement.  Adjustments shall be made due  to  layoff  or
14        reduction  in  force,  lack  of  funds or work, change in
15        subject requirements, enrollment  changes,  or  contracts
16        with  third parties for the performance of services or to
17        rectify any inconsistencies with  system-wide  allocation
18        formulas or for other legitimate reasons.
19             b.  Other   personnel:   Funds   for  other  teacher
20        certificated and uncertificated  personnel  paid  through
21        non-categorical  funds  shall  be  provided  according to
22        system-wide formulas based on student enrollment and  the
23        special needs of the school as determined by the Board.
24             c.  Non-compensation  items:  Appropriations for all
25        non-compensation items  shall  be  based  on  system-wide
26        formulas  based  on student enrollment and on the special
27        needs of the school or factors related  to  the  physical
28        plant,  including but not limited to textbooks, supplies,
29        electricity, equipment, and routine maintenance.
30             d.  Funds for categorical  programs:  Schools  shall
31        receive  personnel and funds based on, and shall use such
32        personnel and funds in accordance with State and  Federal
33        requirements   applicable  to  each  categorical  program
34        provided to meet the special needs of  the  student  body
HB1269 Enrolled            -160-               LRB9001000EGfg
 1        (including   but  not  limited  to,  Federal  Chapter  I,
 2        Bilingual, and Special Education).
 3             d.1.  Funds for State Title I:   Each  school  shall
 4        receive  funds  based  on  State  and  Board requirements
 5        applicable to each State Title I pupil provided  to  meet
 6        the special needs of the student body.  Each school shall
 7        receive  the  proportion  of funds as provided in Section
 8        18-8 to which they are entitled.  These  funds  shall  be
 9        spent  only  with  the  budgetary  approval  of the Local
10        School Council as provided in Section 34-2.3.
11             e.  The Local School Council shall have the right to
12        request the principal to close  positions  and  open  new
13        ones  consistent  with the provisions of the local school
14        improvement  plan  provided  that  these  decisions   are
15        consistent  with applicable law and collective bargaining
16        agreements.  If a position is closed,  pursuant  to  this
17        paragraph,  the  local  school shall have for its use the
18        system-wide average compensation for the closed position.
19             f.  Operating within existing  laws  and  collective
20        bargaining  agreements,  the  local  school council shall
21        have  the  right  to  direct  the  principal   to   shift
22        expenditures within funds.
23             g.  (Blank).
24        Any  funds unexpended at the end of the fiscal year shall
25    be available to the board of education for use as part of its
26    budget for the following fiscal year.
27        5.  To make recommendations to the  principal  concerning
28    textbook   selection   and  concerning  curriculum  developed
29    pursuant to the school improvement plan which  is  consistent
30    with  systemwide  curriculum  objectives  in  accordance with
31    Sections 34-8 and 34-18 of the School Code and in  conformity
32    with the collective bargaining agreement.
33        6.  To advise the principal concerning the attendance and
34    disciplinary  policies  for the attendance center, subject to
HB1269 Enrolled            -161-               LRB9001000EGfg
 1    the provisions of this Article and Article 26, and consistent
 2    with the uniform system  of  discipline  established  by  the
 3    board pursuant to Section 34-19.
 4        7.  To  approve  a  school  improvement plan developed as
 5    provided in Section 34-2.4. The process and schedule for plan
 6    development  shall  be  publicized  to  the   entire   school
 7    community,   and   the   community   shall  be  afforded  the
 8    opportunity to make recommendations concerning the plan.   At
 9    least  twice  a  year  the principal and local school council
10    shall report publicly on progress and problems  with  respect
11    to plan implementation.
12        8.  To  evaluate the allocation of teaching resources and
13    other certificated and uncertificated staff to the attendance
14    center to determine whether  such  allocation  is  consistent
15    with  and  in  furtherance  of  instructional  objectives and
16    school programs reflective of  the  school  improvement  plan
17    adopted    for   the   attendance   center;   and   to   make
18    recommendations to the board, the general superintendent  and
19    the   principal   concerning  any  reallocation  of  teaching
20    resources or other staff whenever the council determines that
21    any   such   reallocation   is   appropriate   because    the
22    qualifications of any existing staff at the attendance center
23    do  not  adequately match or support instructional objectives
24    or school programs which reflect the school improvement plan.
25        9.  To make recommendations  to  the  principal  and  the
26    general    superintendent    concerning    their   respective
27    appointments, after  August  31,  1989,  and  in  the  manner
28    provided  by  Section  34-8 and Section 34-8.1, of persons to
29    fill any vacant, additional or newly  created  positions  for
30    teachers  at  the  attendance center or at attendance centers
31    which include the  attendance  center  served  by  the  local
32    school council.
33        10.  To request of the Board the manner in which training
34    and assistance shall be provided to the local school council.
HB1269 Enrolled            -162-               LRB9001000EGfg
 1    Pursuant  to  Board  guidelines  a  local  school  council is
 2    authorized to direct the Board of Education to contract  with
 3    personnel or not-for-profit organizations not associated with
 4    the  school  district to train or assist council members.  If
 5    training or assistance is provided by contract with personnel
 6    or organizations not associated with the school district, the
 7    period of training or assistance shall not  exceed  30  hours
 8    during a given school year; person shall not be employed on a
 9    continuous  basis  longer than said period and shall not have
10    been employed by the Chicago Board of  Education  within  the
11    preceding six months.  Council members shall receive training
12    in at least the following areas:
13             1.  school budgets;
14             2.  educational  theory  pertinent to the attendance
15        center's particular needs, including the  development  of
16        the   school   improvement   plan   and  the  principal's
17        performance contract; and
18             3.  personnel selection.
19    Council members  shall,  to  the  greatest  extent  possible,
20    complete such training within 90 days of election.
21        11.  In  accordance  with systemwide guidelines contained
22    in the System-Wide Educational Reform  Goals  and  Objectives
23    Plan,   criteria  for  evaluation  of  performance  shall  be
24    established  for  local  school  councils  and  local  school
25    council members.  If  a  local  school  council  persists  in
26    noncompliance  with  systemwide  requirements,  the Board may
27    impose  sanctions  and  take  necessary  corrective   action,
28    consistent with Section 34-8.3.
29        12.  Each local school council shall comply with the Open
30    Meetings  Act and the Freedom of Information Act.  Each local
31    school  council  shall  issue  and  transmit  to  its  school
32    community  a  detailed  annual  report  accounting  for   its
33    activities  programmatically  and  financially.   Each  local
34    school  council  shall  convene  at  least  2 well-publicized
HB1269 Enrolled            -163-               LRB9001000EGfg
 1    meetings annually with its entire  school  community.   These
 2    meetings  shall  include  presentation  of the proposed local
 3    school improvement plan, of the proposed  school  expenditure
 4    plan, and the annual report, and shall provide an opportunity
 5    for public comment.
 6        13.  Each  local  school council is encouraged to involve
 7    additional non-voting members  of  the  school  community  in
 8    facilitating the council's exercise of its responsibilities.
 9        14.  The  local school council may adopt a school uniform
10    or dress code policy that governs the attendance  center  and
11    that is necessary to maintain the orderly process of a school
12    function or prevent endangerment of student health or safety,
13    consistent  with  the  policies  and  rules  of  the Board of
14    Education. A school uniform or dress code policy adopted by a
15    local school council: (i) shall not be applied in such manner
16    as to discipline or deny attendance to a transfer student  or
17    any  other  student for noncompliance with that policy during
18    such period of time as is reasonably necessary to enable  the
19    student  to acquire a school uniform or otherwise comply with
20    the dress code policy that is in  effect  at  the  attendance
21    center  into  which  the student's enrollment is transferred;
22    and (ii) shall include criteria and procedures under    which
23    the  local  school  council  will accommodate the needs of or
24    otherwise provide appropriate resources to assist  a  student
25    from  an  indigent  family  in  complying  with an applicable
26    school uniform or dress code policy. A student whose  parents
27    or  legal  guardians  object  on  religious  grounds  to  the
28    student's  compliance  with  an  applicable school uniform or
29    dress code policy shall not be required to comply  with  that
30    policy if the student's parents or legal guardians present to
31    the  local  school  council  a  signed statement of objection
32    detailing the grounds for the objection.
33        15.  All decisions made and actions taken  by  the  local
34    school council in the exercise of its powers and duties shall
HB1269 Enrolled            -164-               LRB9001000EGfg
 1    comply with State and federal laws, all applicable collective
 2    bargaining   agreements,  court  orders  and  rules  properly
 3    promulgated by the Board.
 4        15a.  To  grant,  in  accordance  with  board  rules  and
 5    policies, the use of assembly halls and classrooms  when  not
 6    otherwise  needed,  including lighting, heat, and attendants,
 7    for public lectures,  concerts,  and  other  educational  and
 8    social activities.
 9        15b.  To  approve,  in  accordance  with  board rules and
10    policies, receipts and expenditures for all internal accounts
11    of the attendance center, and  to  approve  all  fund-raising
12    activities  by  nonschool  organizations  that use the school
13    building.
14        16.  (Blank).
15        17.   Names and addresses of local school council members
16    shall be a matter of public record.
17    (Source: P.A. 88-85; 88-511;  88-686,  eff.  1-24-95;  89-15,
18    eff.  5-30-95;  89-610,  eff.  8-6-96;  89-636,  eff. 8-9-96;
19    revised 9-9-96.)
20        Section 2-140.  The Illinois Banking Act  is  amended  by
21    changing Sections 2, 13, 47, and 48 as follows:
22        (205 ILCS 5/2) (from Ch. 17, par. 302)
23        Sec.  2.  General  definitions.   In this Act, unless the
24    context otherwise requires, the following words  and  phrases
25    shall have the following meanings:
26        "Accommodation  party" shall have the meaning ascribed to
27    that term in Section 3-415 of the Uniform Commercial Code.
28        "Action" in the sense of a judicial  proceeding  includes
29    recoupments, counterclaims, set-off, and any other proceeding
30    in which rights are determined.
31        "Affiliate  facility"  of  a  bank  means  a main banking
32    premises or branch of another commonly owned bank.  The  main
HB1269 Enrolled            -165-               LRB9001000EGfg
 1    banking premises or any branch of a bank may be an "affiliate
 2    facility"  with  respect  to one or more other commonly owned
 3    banks.
 4        "Appropriate federal banking agency"  means  the  Federal
 5    Deposit  Insurance  Corporation,  the Federal Reserve Bank of
 6    Chicago, or  the  Federal  Reserve  Bank  of  St.  Louis,  as
 7    determined by federal law.
 8        "Bank"  means any person doing a banking business whether
 9    subject to the laws of this or any other jurisdiction.
10        A "banking house", "branch",  "branch  bank"  or  "branch
11    office"  shall  mean any place of business of a bank at which
12    deposits are received, checks paid, or loans made, but  shall
13    not include any place at which only records thereof are made,
14    posted,  or  kept.  A place of business at which deposits are
15    received, checks paid, or loans made shall not be  deemed  to
16    be  a  branch,  branch bank, or branch office if the place of
17    business is adjacent to and connected with the  main  banking
18    premises,  or  if  it  is  separated  from  the  main banking
19    premises by not more than an alley; provided always that  (i)
20    if  the  place  of business is separated by an alley from the
21    main banking premises there is a connection between  the  two
22    by  public  or  private  way  or  by subterranean or overhead
23    passage, and (ii) if the place of business is in  a  building
24    not  wholly occupied by the bank, the place of business shall
25    not be within any office or room in which any other  business
26    or  service  of any kind or nature other than the business of
27    the bank is conducted or carried on. A place of  business  at
28    which deposits are received, checks paid, or loans made shall
29    not  be  deemed to be a branch, branch bank, or branch office
30    (i) of any bank if the place is an automatic  teller  machine
31    established  and maintained in accordance with paragraph (16)
32    of Section 5 of this Act, or (ii) of any bank if the place is
33    a point  of  sale  terminal  established  and  maintained  in
34    accordance  with  paragraph (17) of Section 5 of this Act, or
HB1269 Enrolled            -166-               LRB9001000EGfg
 1    (iii) of a commonly owned  bank  by  virtue  of  transactions
 2    conducted at that place on behalf of the other commonly owned
 3    bank  under  paragraph  (23)  of Section 5 of this Act if the
 4    place is an affiliate facility  with  respect  to  the  other
 5    bank.
 6        "Branch   of   an   out-of-state  bank"  means  a  branch
 7    established or maintained in Illinois by an out-of-state bank
 8    as a result of a merger between  an  Illinois  bank  and  the
 9    out-of-state  bank  that  occurs on or after May 31, 1997, or
10    any branch established by the out-of-state bank following the
11    merger.
12        "Call report fee"  means  the  fee  to  be  paid  to  the
13    Commissioner  by each State bank pursuant to paragraph (a) of
14    subsection (3) of Section 48 of this Act.
15        "Capital" includes the aggregate of  outstanding  capital
16    stock and preferred stock.
17        "Cash  flow reserve account" means the account within the
18    books and records of  the  Commissioner  of  Banks  and  Real
19    Estate   used  to  record  funds  designated  to  maintain  a
20    reasonable Bank and Trust Company Fund operating  balance  to
21    meet agency obligations on a timely basis.
22        "Charter"   includes   the   original   charter  and  all
23    amendments thereto and articles of merger or consolidation.
24        "Commissioner" means the Commissioner of Banks  and  Real
25    Estate or a person authorized by the Commissioner, the Office
26    of  Banks  and  Real  Estate  Act,  or this Act to act in the
27    Commissioner's stead.
28        "Commonly owned banks" means 2 or more  banks  that  each
29    qualify as a bank subsidiary of the same bank holding company
30    pursuant  to Section 18 of the Federal Deposit Insurance Act;
31    "commonly owned bank" refers to one of a  group  of  commonly
32    owned banks but only with respect to one or more of the other
33    banks in the same group.
34        "Community"  means  a city, village, or incorporated town
HB1269 Enrolled            -167-               LRB9001000EGfg
 1    in this State.
 2        "Company"  means  a  corporation,  partnership,  business
 3    trust,  association,  or  similar  organization  and,  unless
 4    specifically excluded, includes a "State bank" and a "bank".
 5        "Consolidating bank" means a party to a consolidation.
 6        "Consolidation" takes place when 2 or more  banks,  or  a
 7    trust  company  and  a bank, are extinguished and by the same
 8    process a new bank is created, taking  over  the  assets  and
 9    assuming  the  liabilities  of  the  banks  or  trust company
10    passing out of existence.
11        "Continuing bank" means a merging bank,  the  charter  of
12    which becomes the charter of the resulting bank.
13        "Converting bank" means a State bank converting to become
14    a  national  bank,  or a national bank converting to become a
15    State bank.
16        "Converting  trust  company"  means   a   trust   company
17    converting to become a State bank.
18        "Court" means a court of competent jurisdiction.
19        "Eligible   depository   institution"  means  an  insured
20    savings association that is in default,  an  insured  savings
21    association that is in danger of default, a State or national
22    bank  that  is in default or a State or national bank that is
23    in danger of default, as those  terms  are  defined  in  this
24    Section,  or a new bank as that term defined in Section 11(m)
25    of the Federal Deposit Insurance Act or a bridge bank as that
26    term is defined in  Section  11(n)  of  the  Federal  Deposit
27    Insurance Act or a new federal savings association authorized
28    under  Section  11(d)(2)(f)  of the Federal Deposit Insurance
29    Act.
30        "Fiduciary"    means    trustee,     agent,     executor,
31    administrator,  committee,  guardian  for  a  minor  or for a
32    person  under  legal   disability,   receiver,   trustee   in
33    bankruptcy,  assignee for creditors, or any holder of similar
34    position of trust.
HB1269 Enrolled            -168-               LRB9001000EGfg
 1        "Financial institution" means a bank,  savings  and  loan
 2    association, credit union, or any licensee under the Consumer
 3    Installment Loan Act or the Sales Finance Agency Act and, for
 4    purposes  of  Section  48.3,  any  proprietary network, funds
 5    transfer corporation, or other  entity  providing  electronic
 6    funds  transfer  services,  or  any  corporate fiduciary, its
 7    subsidiaries,  affiliates,  parent  company,  or  contractual
 8    service provider that is examined by the Commissioner.
 9        "Foundation" means the Illinois Bank Examiners' Education
10    Foundation.
11        "General  obligation"  means  a  bond,  note,  debenture,
12    security, or other instrument evidencing an obligation of the
13    issuer that is supported by the full available  resources  of
14    the issuer, the principal and interest of which is payable in
15    whole or in part by taxation.
16        "Guarantee" means an undertaking or promise to answer for
17    payment  of  another's debt or performance of another's duty,
18    liability, or  obligation  whether  "payment  guaranteed"  or
19    "collection guaranteed".
20        "In  danger of default" means a State or national bank, a
21    federally  chartered  insured  savings  association   or   an
22    Illinois  state  chartered  insured  savings association with
23    respect to which the Commissioner or the appropriate  federal
24    banking  agency  has  advised  the  Federal Deposit Insurance
25    Corporation that:
26             (1)  in the  opinion  of  the  Commissioner  or  the
27        appropriate federal banking agency,
28                  (A)  the  State  or  national  bank  or insured
29             savings association is not likely to be able to meet
30             the demands of  the  State  or  national  bank's  or
31             savings  association's  obligations  in  the  normal
32             course of business; and
33                  (B)  there  is  no reasonable prospect that the
34             State  or   national   bank   or   insured   savings
HB1269 Enrolled            -169-               LRB9001000EGfg
 1             association  will  be  able to meet those demands or
 2             pay those obligations without federal assistance; or
 3             (2)  in the  opinion  of  the  Commissioner  or  the
 4        appropriate federal banking agency,
 5                  (A)  the  State  or  national  bank  or insured
 6             savings association has incurred  or  is  likely  to
 7             incur  losses that will deplete all or substantially
 8             all of its capital; and
 9                  (B)  there is no reasonable prospect  that  the
10             capital  of  the  State  or national bank or insured
11             savings  association  will  be  replenished  without
12             federal assistance.
13        "In default" means, with respect to a State  or  national
14    bank  or  an insured savings association, any adjudication or
15    other  official  determination  by  any  court  of  competent
16    jurisdiction,  the  Commissioner,  the  appropriate   federal
17    banking agency, or other public authority pursuant to which a
18    conservator,  receiver, or other legal custodian is appointed
19    for  a  State  or  national  bank  or  an   insured   savings
20    association.
21        "Insured  savings  association" means any federal savings
22    association chartered under Section 5  of  the  federal  Home
23    Owners'  Loan Act and any State savings association chartered
24    under the  Illinois  Savings  and  Loan  Act  of  1985  or  a
25    predecessor  Illinois  statute,  the  deposits  of  which are
26    insured by the Federal Deposit  Insurance  Corporation.   The
27    term  also  includes  a  savings  bank organized or operating
28    under the Savings Bank Act.
29        "Insured  savings  association  in  recovery"  means   an
30    insured   savings   association   that  is  not  an  eligible
31    depository institution and that does  not  meet  the  minimum
32    capital  requirements  applicable with respect to the insured
33    savings association.
34        "Issuer" means for purposes of Section  33  every  person
HB1269 Enrolled            -170-               LRB9001000EGfg
 1    who  shall  have  issued  or  proposed to issue any security;
 2    except that (1) with  respect  to  certificates  of  deposit,
 3    voting trust certificates, collateral-trust certificates, and
 4    certificates  of  interest  or  shares  in  an unincorporated
 5    investment trust not having a board of directors (or  persons
 6    performing  similar  functions), "issuer" means the person or
 7    persons performing  the  acts  and  assuming  the  duties  of
 8    depositor or manager pursuant to the provisions of the trust,
 9    agreement,  or  instrument  under  which  the  securities are
10    issued; (2) with respect to trusts other than those specified
11    in clause (1) above,  where  the  trustee  is  a  corporation
12    authorized  to  accept and execute trusts, "issuer" means the
13    entrusters, depositors, or creators  of  the  trust  and  any
14    manager  or  committee  charged with the general direction of
15    the affairs of the trust pursuant to the  provisions  of  the
16    agreement  or  instrument  creating  the  trust; and (3) with
17    respect to equipment trust certificates or  like  securities,
18    "issuer"  means  the person to whom the equipment or property
19    is or is to be leased or conditionally sold.
20        "Letter of credit" and "customer" shall have the meanings
21    ascribed to those terms  in  Section  5-102  of  the  Uniform
22    Commercial Code.
23        "Main  banking  premises"  means  the  location  that  is
24    designated in a bank's charter as its main office.
25        "Maker  or  obligor" means for purposes of Section 33 the
26    issuer of a security, the promisor in a  debenture  or  other
27    debt security, or the mortgagor or grantor of a trust deed or
28    similar conveyance of a security interest in real or personal
29    property.
30        "Merged  bank"  means  a  merging  bank  that  is not the
31    continuing, resulting, or surviving bank in  a  consolidation
32    or merger.
33        "Merger" includes consolidation.
34        "Merging bank" means a party to a bank merger.
HB1269 Enrolled            -171-               LRB9001000EGfg
 1        "Merging  trust company" means a trust company party to a
 2    merger with a State bank.
 3        "Mid-tier bank holding company" means a corporation  that
 4    (a)  owns  100%  of the issued and outstanding shares of each
 5    class  of  stock  of  a  State  bank,  (b)   has   no   other
 6    subsidiaries,  and  (c)  100%  of  the issued and outstanding
 7    shares of the corporation are owned by a parent bank  holding
 8    company.
 9        "Municipality"    means   any   municipality,   political
10    subdivision, school district, taxing district, or agency.
11        "National bank"  means  a  national  banking  association
12    located  in  this  State  and  after  May  31,  1997, means a
13    national banking association without regard to its location.
14        "Out-of-state bank" means a bank chartered under the laws
15    of a state other than Illinois, a  territory  of  the  United
16    States, or the District of Columbia.
17        "Parent bank holding company" means a corporation that is
18    a  bank  holding  company  as  that  term  is  defined in the
19    Illinois Bank Holding Company Act of 1957 and  owns  100%  of
20    the  issued and outstanding shares of a mid-tier bank holding
21    company.
22        "Person" means an individual,  corporation,  partnership,
23    joint venture, trust, estate, or unincorporated association.
24        "Public  agency" means the State of Illinois, the various
25    counties,  townships,   cities,   towns,   villages,   school
26    districts,   educational   service   regions,   special  road
27    districts, public water  supply  districts,  fire  protection
28    districts,   drainage   districts,   levee  districts,  sewer
29    districts, housing authorities, the Illinois Bank  Examiners'
30    Education  Foundation,  the  Chicago  Park  District, and all
31    other political corporations or subdivisions of the State  of
32    Illinois,  whether  now  or hereafter created, whether herein
33    specifically mentioned or not, and  shall  also  include  any
34    other  state  or  any political corporation or subdivision of
HB1269 Enrolled            -172-               LRB9001000EGfg
 1    another state.
 2        "Public funds" or "public money" means current  operating
 3    funds,  special  funds, interest and sinking funds, and funds
 4    of any kind or character belonging to, in the custody of,  or
 5    subject  to the control or regulation of the United States or
 6    a public agency.  "Public  funds"  or  "public  money"  shall
 7    include  funds  held  by  any  of  the  officers,  agents, or
 8    employees of the United States or of a public agency  in  the
 9    course  of  their official duties and, with respect to public
10    money of the United  States,  shall  include  Postal  Savings
11    funds.
12        "Published" means, unless the context requires otherwise,
13    the  publishing  of  the  notice or instrument referred to in
14    some newspaper of general circulation  in  the  community  in
15    which  the  bank  is  located  at  least once each week for 3
16    successive weeks.  Publishing shall be accomplished  by,  and
17    at  the  expense  of,  the  bank  required to publish.  Where
18    publishing  is  required,  the  bank  shall  submit  to   the
19    Commissioner   that   evidence  of  the  publication  as  the
20    Commissioner shall deem appropriate.
21        "Recorded" means the filing or recording of the notice or
22    instrument referred to in the office of the Recorder  of  the
23    county wherein the bank is located.
24        "Resulting  bank"  means the bank resulting from a merger
25    or conversion.
26        "Securities" means stocks, bonds, debentures,  notes,  or
27    other similar obligations.
28        "Stand-by  letter  of  credit"  means  a letter of credit
29    under  which  drafts  are  payable  upon  the  condition  the
30    customer has defaulted in performance of a  duty,  liability,
31    or obligation.
32        "State  bank"  means  any  banking corporation that has a
33    banking charter issued by the Commissioner under this Act.
34        "State Banking Board" means the State  Banking  Board  of
HB1269 Enrolled            -173-               LRB9001000EGfg
 1    Illinois.
 2        "Subsidiary"  with respect to a specified company means a
 3    company that is controlled by  the  specified  company.   For
 4    purposes of paragraphs (8) and (12) of Section 5 of this Act,
 5    "control"  means  the  exercise  of operational or managerial
 6    control of  a  corporation  by  the  bank,  either  alone  or
 7    together with other affiliates of the bank.
 8        "Surplus"  means  the  aggregate  of  (i) amounts paid in
 9    excess of the par value of capital stock and preferred stock;
10    (ii) amounts contributed other than  for  capital  stock  and
11    preferred  stock  and  allocated  to the surplus account; and
12    (iii) amounts transferred from undivided profits.
13        "Tier 1 Capital" and "Tier 2 Capital" have  the  meanings
14    assigned  to  those  terms in regulations promulgated for the
15    appropriate federal banking agency of a state bank, as  those
16    regulations are now or hereafter amended.
17        "Trust  company" means a corporation incorporated in this
18    State for the purpose of accepting and executing trusts.
19        "Undivided profits"  means  undistributed  earnings  less
20    discretionary transfers to surplus.
21        "Unimpaired  capital  and  unimpaired  surplus",  for the
22    purposes of paragraph (21) of Section 5 and Sections 32,  33,
23    34, 35.1, 35.2, and 47 of this Act means the sum of the state
24    bank's  Tier  1  Capital  and  Tier 2 Capital plus such other
25    shareholder equity as may be included by  regulation  of  the
26    Commissioner.   Unimpaired  capital  and  unimpaired  surplus
27    shall  be  calculated  on  the  basis of the date of the last
28    quarterly call report filed with the  Commissioner  preceding
29    the  date  of  the  transaction  for which the calculation is
30    made, provided that: (i) when a material event  occurs  after
31    the  date  of  the  last quarterly call report filed with the
32    Commissioner that reduces or increases the bank's  unimpaired
33    capital  and  unimpaired  surplus  by  10%  or more, then the
34    unimpaired capital and unimpaired surplus shall be calculated
HB1269 Enrolled            -174-               LRB9001000EGfg
 1    from the  date  of  the  material  event  for  a  transaction
 2    conducted  after  the date of the material event; and (ii) if
 3    the Commissioner determines for safety and soundness  reasons
 4    that  a  state  bank  should calculate unimpaired capital and
 5    unimpaired surplus more  frequently  than  provided  by  this
 6    paragraph,  the Commissioner may by written notice direct the
 7    bank to calculate unimpaired capital and  unimpaired  surplus
 8    at  a  more  frequent  interval.  In the case of a state bank
 9    newly chartered under Section 13 or a  state  bank  resulting
10    from a merger, consolidation, or conversion under Sections 21
11    through  26  for which no preceding quarterly call report has
12    been filed with  the  Commissioner,  unimpaired  capital  and
13    unimpaired surplus shall be calculated for the first calendar
14    quarter  on  the  basis of the effective date of the charter,
15    merger, consolidation, or conversion.
16    (Source: P.A. 88-45; 88-271; 88-546;  89-208,  eff.  9-29-95;
17    89-364,  eff.  8-18-95; revised 9-18-95; 89-508, eff. 7-3-96;
18    89-534, eff.  1-1-97;  89-567,  eff.  7-26-96;  89-626,  eff.
19    8-9-96; revised 8-27-96.)
20        (205 ILCS 5/13) (from Ch. 17, par. 320)
21        Sec. 13.  Issuance of charter.
22        (a)  When  the  directors  have  organized as provided in
23    Section 12 of  this  Act,  and  the  capital  stock  and  the
24    preferred  stock, if any, together with a surplus of not less
25    than 50% of the capital, and a reserve for operating expenses
26    of at least 25% of the capital, has been all  fully  paid  in
27    and  a  record  of  the same filed with the Commissioner, the
28    Commissioner or some competent person of  the  Commissioner's
29    appointment  shall  make  a  thorough  examination  into  the
30    affairs  of  the proposed bank, and if satisfied that all the
31    requirements of this Act have been complied with, and that no
32    intervening  circumstance  has   occurred   to   change   the
33    Commissioner's  findings  made pursuant to Section 10 of this
HB1269 Enrolled            -175-               LRB9001000EGfg
 1    Act, upon payment  into  the  Commissioner's  office  of  the
 2    reasonable  expenses of the examination, as determined by the
 3    Commissioner,  the  Commissioner  shall   issue   a   charter
 4    authorizing  the  bank  to commence business as authorized in
 5    this Act.  All charters issued by  the  Commissioner  or  any
 6    predecessor agency which chartered State banks, including any
 7    charter  outstanding  as  of  September  1,  1989,  shall  be
 8    perpetual.  For the 2 years after the Commissioner has issued
 9    a  charter  to a bank, the bank shall request and obtain from
10    the Commissioner prior written approval before it may  change
11    senior management personnel or directors.
12        The charter, duly certified by the Commissioner, shall be
13    recorded,  and  the  original  or  a  certified copy shall be
14    evidence in all  courts  and  places  of  the  existence  and
15    authority  of the bank to do business.  Upon the recording of
16    the charter the bank shall be deemed fully organized and  may
17    proceed  to  do  business.   The  Commissioner  may,  in  the
18    Commissioner's   discretion,  withhold  the  issuing  of  the
19    charter when the Commissioner has reason to believe that  the
20    bank   is   organized   for   any  purpose  other  than  that
21    contemplated by this Act or that a commission or fee has been
22    paid in connection with the sale of the stock  of  the  bank.
23    The   Commissioner   shall   revoke  the  charter  and  order
24    liquidation in the event that the bank does  not  commence  a
25    general banking business within one year from the date of the
26    issuance of the charter, unless a request has been submitted,
27    in  writing,  to  the  Commissioner  for an extension and the
28    request  has  been  approved.   After  commencing  a  general
29    banking  business,  a  bank,  upon  written  notice  to   the
30    Commissioner, may change its name.
31        (b) (1)  The  Commissioner  may also issue a charter to a
32    bank  that  is  owned   exclusively   by   other   depository
33    institutions  or depository institution holding companies and
34    is organized to engage exclusively in providing  services  to
HB1269 Enrolled            -176-               LRB9001000EGfg
 1    or   for   other   depository   institutions,  their  holding
 2    companies, and the officers, directors, and employees of such
 3    institutions and companies, and  in  providing  correspondent
 4    banking   services   at   the  request  of  other  depository
 5    institutions or their holding companies (also referred to  as
 6    a "bankers' bank").
 7        (2)  A  bank  chartered  pursuant to paragraph (1) shall,
 8    except  as   otherwise   specifically   determined   by   the
 9    Commissioner,  be  vested with the same rights and privileges
10    and subject to the same duties, restrictions, penalties,  and
11    liabilities now or hereafter imposed under this Act.
12        (c)  A  bank  chartered  under this Act after November 1,
13    1985, and an out-of-state bank that merges with a State  bank
14    and establishes or maintains a branch in this State after May
15    31,  1997,  shall  obtain  from  and,  at  all times while it
16    accepts  or  retains  deposits,  maintain  with  the  Federal
17    Deposit Insurance Corporation, or such other  instrumentality
18    of  or  corporation  chartered  by the United States, deposit
19    insurance as authorized under federal law.
20        (d) (i)  A bank that has a banking charter issued by  the
21    Commissioner  under  this  Act  may,  pursuant  to  a written
22    purchase and assumption agreement, transfer substantially all
23    of its assets to another  State  bank  or  national  bank  in
24    consideration, in whole or in part, for the transferee banks'
25    assumption  of  any  part  or all of its liabilities.  Such a
26    transfer shall in no way be deemed to impair the  charter  of
27    the  transferor  bank or cause the transferor bank to forfeit
28    any  of  its  rights,  powers,  interests,   franchises,   or
29    privileges as a State bank, nor shall any voluntary reduction
30    in  the  transferor  bank's  activities  resulting  from  the
31    transfer  have  any  such  effect;  provided, however, that a
32    State bank that transfers substantially  all  of  its  assets
33    pursuant  to  this  subsection (d) and following the transfer
34    does not accept deposits and make loans, shall not  have  any
HB1269 Enrolled            -177-               LRB9001000EGfg
 1    rights,  powers,  interests,  franchises, or privileges under
 2    subsection (15) of Section 5 of this Act until the  bank  has
 3    resumed accepting deposits and making loans.
 4        (ii)  The   fact  that  a  State  bank  does  not  resume
 5    accepting deposits and making loans for a period of 24 months
 6    commencing on September 11, 1989 or on a date of the transfer
 7    of substantially all of a State bank's assets,  whichever  is
 8    later, or such longer period as the Commissioner may allow in
 9    writing,  may  be the basis for a finding by the Commissioner
10    under Section 51 of this Act  that  the  bank  is  unable  to
11    continue operations.
12        (iii)  The  authority provided by subdivision (i) of this
13    subsection (d)(i) shall terminate on May  31,  1997,  and  no
14    bank  that  has  transferred  substantially all of its assets
15    pursuant to this subsection (d) shall continue  in  existence
16    after May 31, 1997.
17    (Source:  P.A.  89-208,  eff.  9-29-95; 89-567, eff. 7-26-96;
18    89-603, eff. 8-2-96; revised 9-9-96.)
19        (205 ILCS 5/47) (from Ch. 17, par. 358)
20        Sec. 47.  Reports to Commissioner.
21        (a)  All State banks  shall  make  a  full  and  accurate
22    statement  of  their  affairs  at  least  1  time during each
23    calendar quarter which shall be certified to, under  oath  by
24    the  president, a vice-president or the cashier of such bank.
25    If  the  statement  is  submitted  in  electronic  form,  the
26    Commissioner may, in the call for  the  report,  specify  the
27    manner  in  which  the  appropriate officer of the bank shall
28    certify the statement of  affairs.  The  statement  shall  be
29    according  to  the  form  which  may  be  prescribed  by  the
30    Commissioner   and   shall   exhibit  in  detail  information
31    concerning such bank at the close of business of any day  the
32    Commissioner  may  choose  and  designate  in a call for such
33    report.  Each bank shall deliver its quarterly  statement  to
HB1269 Enrolled            -178-               LRB9001000EGfg
 1    the location specified by the Commissioner within 30 calendar
 2    days  of  the  date  of  the  call  for such reports.  If the
 3    quarterly statement is mailed, it must be  postmarked  within
 4    the  period  prescribed  for  delivery,  and if the quarterly
 5    statement is delivered in electronic  form,  the  bank  shall
 6    generate and retain satisfactory proof that it has caused the
 7    report  to  be  delivered  within  the  period prescribed for
 8    delivery. Within 60 calendar days  after  the  Commissioner's
 9    call  for the fourth calendar quarter statement of affairs, a
10    State bank  shall  publish  an  annual  disclosure  statement
11    setting  forth  the  information  required  by  rule  of  the
12    Commissioner.   The  disclosure  statement  shall contain the
13    required information as of the  close  of  the  business  day
14    designated   by  the  Commissioner  for  the  fourth  quarter
15    statement of affairs. Any bank failing to  make  and  deliver
16    such  statement  or  to  comply  with  any provisions of this
17    Section  may  be  subject  to  a  penalty  payable   to   the
18    Commissioner of $100 for each day of noncompliance.
19        (b)  In addition to the foregoing reports, any bank which
20    is the victim of a shortage of funds in excess of $10,000, an
21    apparent  misapplication  of  the bank's funds by an officer,
22    employee or director, or  any  adverse  legal  action  in  an
23    amount  in  excess  of  10%  of  total unimpaired capital and
24    unimpaired surplus of the bank, including but not limited to,
25    the entry of an adverse money judgment against the bank or  a
26    write-off   of   assets   of  the  bank,  shall  report  that
27    information in writing to the Commissioner within 7  days  of
28    the  occurrence.   Neither the bank, its directors, officers,
29    employees or its agents, in the preparation or filing of  the
30    reports  required by subsection (b) of this Section, shall be
31    subject to any liability for libel, slander, or other charges
32    resulting from information supplied in such  reports,  except
33    when  the  supplying of such information is done in a corrupt
34    or malicious manner or otherwise not in good faith.
HB1269 Enrolled            -179-               LRB9001000EGfg
 1    (Source: P.A. 89-505, eff.  6-28-96;  89-567,  eff.  7-26-96;
 2    revised 8-28-96.)
 3        (205 ILCS 5/48) (from Ch. 17, par. 359)
 4        Sec. 48. Commissioner's powers; duties.  The Commissioner
 5    shall  have the powers and authority, and is charged with the
 6    duties and responsibilities designated in  this  Act,  and  a
 7    State bank shall not be subject to any other visitorial power
 8    other  than as authorized by this Act, except those vested in
 9    the courts. In the performance of the Commissioner's duties:
10        (1)  The Commissioner shall call for statements from  all
11    State  banks  as  provided  in  Section  47 at least one time
12    during each calendar quarter.
13        (2) (a)  The Commissioner, as often as  the  Commissioner
14    shall  deem  necessary  or  proper, and at least once in each
15    year, shall appoint a suitable person or persons to  make  an
16    examination  of  the affairs of every State bank, except that
17    for every eligible State bank, as defined by regulation,  the
18    Commissioner  in  lieu  of  an annual examination every other
19    year shall accept the examination made by the eligible  State
20    bank's appropriate federal banking agency pursuant to Section
21    111  of the Federal Deposit Insurance Corporation Improvement
22    Act of 1991, provided the appropriate federal banking  agency
23    has made such an examination. A person so appointed shall not
24    be  a  stockholder  or  officer or employee of any bank which
25    that person may be directed to examine, and shall have powers
26    to make a thorough examination into all the  affairs  of  the
27    bank and in so doing to examine any of the officers or agents
28    or  employees  thereof  on  oath  and  shall  make a full and
29    detailed  report  of  the  condition  of  the  bank  to   the
30    Commissioner.  In  making the examination the examiners shall
31    include an examination of the affairs of all  the  affiliates
32    of  the bank, as defined in subsection (b) of Section 35.2 of
33    this Act,  as  shall  be  necessary  to  disclose  fully  the
HB1269 Enrolled            -180-               LRB9001000EGfg
 1    conditions  of the affiliates, the relations between the bank
 2    and the affiliates and the effect of those relations upon the
 3    affairs of the bank, and in connection therewith  shall  have
 4    power  to  examine any of the officers, directors, agents, or
 5    employees of the affiliates on oath. After May 31, 1997,  the
 6    Commissioner may enter into cooperative agreements with state
 7    regulatory   authorities  of  other  states  to  provide  for
 8    examination of State bank branches in those states,  and  the
 9    Commissioner may accept reports of examinations of State bank
10    branches  from  those  state  regulatory  authorities.  These
11    cooperative  agreements may set forth the manner in which the
12    other state regulatory authorities  may  be  compensated  for
13    examinations prepared for and submitted to the Commissioner.
14        (b)  After  May  31, 1997, the Commissioner is authorized
15    to examine, as often as the Commissioner shall deem necessary
16    or proper, branches of out-of-state banks.  The  Commissioner
17    may  establish  and  may  assess  fees  to  be  paid  to  the
18    Commissioner for examinations under this subsection (b).  The
19    fees shall be borne by the out-of-state bank, unless the fees
20    are  borne  by  the state regulatory authority that chartered
21    the  out-of-state  bank,  as  determined  by  a   cooperative
22    agreement  between  the Commissioner and the state regulatory
23    authority that chartered the out-of-state bank.
24        (2.5)  Whenever  any  State  bank,  any   subsidiary   or
25    affiliate  of a State bank, or after May 31, 1997, any branch
26    of an out-of-state bank causes to be performed,  by  contract
27    or otherwise, any bank services for itself, whether on or off
28    its premises:
29             (a)  that    performance   shall   be   subject   to
30        examination by the Commissioner to the same extent as  if
31        services  were  being performed by the bank or, after May
32        31, 1997, branch of the out-of-state bank itself  on  its
33        own premises; and
34             (b)  the  bank or, after May 31, 1997, branch of the
HB1269 Enrolled            -181-               LRB9001000EGfg
 1        out-of-state bank shall notify the  Commissioner  of  the
 2        existence  of  a  service relationship.  The notification
 3        shall be submitted with the first statement of  condition
 4        (as  required  by  Section  47 of this Act) due after the
 5        making of the service contract or the performance of  the
 6        service,  whichever occurs first.  The Commissioner shall
 7        be notified of  each  subsequent  contract  in  the  same
 8        manner.
 9        For  purposes  of  this  subsection (2.5), the term "bank
10    services" means services  such  as  sorting  and  posting  of
11    checks  and deposits, computation and posting of interest and
12    other credits and charges, preparation and mailing of checks,
13    statements,  notices,  and  similar  items,  or   any   other
14    clerical,  bookkeeping,  accounting,  statistical, or similar
15    functions performed for  a  State  bank,  including  but  not
16    limited  to  electronic data processing related to those bank
17    services.
18        (3)  The expense of administering this Act, including the
19    expense of the examinations of State  banks  as  provided  in
20    this  Act,  shall to the extent of the amounts resulting from
21    the fees provided for in paragraphs (a), (a-2),  and  (b)  of
22    this  subsection  (3)  be  assessed  against and borne by the
23    State banks:
24             (a)  Each bank shall pay to the Commissioner a  Call
25        Report  Fee which shall be paid in quarterly installments
26        equal to one-fourth of the sum of the annual fixed fee of
27        $800, plus a variable fee based on the  assets  shown  on
28        the  quarterly  statement  of  condition delivered to the
29        Commissioner  in  accordance  with  Section  47  for  the
30        preceding quarter according to  the  following  schedule:
31        16¢  per  $1,000 of the first $5,000,000 of total assets,
32        15¢ per $1,000 of the next $20,000,000 of  total  assets,
33        13¢  per $1,000 of the next $75,000,000  of total assets,
34        9¢ per $1,000 of the next $400,000,000 of  total  assets,
HB1269 Enrolled            -182-               LRB9001000EGfg
 1        7¢  per  $1,000 of the next $500,000,000 of total assets,
 2        and  5¢  per  $1,000  of  all   assets   in   excess   of
 3        $1,000,000,000,  of  the  State bank. The Call Report Fee
 4        shall be calculated by the Commissioner and billed to the
 5        banks  for  remittance  at  the  time  of  the  quarterly
 6        statements of condition provided for in Section  47.  The
 7        Commissioner  may require payment of the fees provided in
 8        this Section by an electronic transfer  of  funds  or  an
 9        automatic debit of an account of each of the State banks.
10        In  case  more than one examination of any bank is deemed
11        by the Commissioner to be necessary in  any  fiscal  year
12        and  is  performed at his direction, the Commissioner may
13        assess a reasonable additional fee to recover the cost of
14        the additional examination, but the additional fee  shall
15        not  exceed  the  sum  of  the  remittances from the Call
16        Report Fees applicable to  the  4  consecutive  quarterly
17        statements of condition immediately preceding the date of
18        the  additional  examination.   In lieu of the method and
19        amounts  set  forth  in  this  paragraph  (a)   for   the
20        calculation  of the Call Report Fee, the Commissioner may
21        specify by rule that the Call  Report  Fees  provided  by
22        this  Section  may be assessed semiannually or some other
23        period and may provide in the rule the formula to be used
24        for calculating and assessing the  periodic  Call  Report
25        Fees to be paid by State banks.
26             (a-1)  If  in  the  opinion  of  the Commissioner an
27        emergency exists or appears likely, the Commissioner  may
28        assign an examiner or examiners to monitor the affairs of
29        a   State   bank   with   whatever   frequency  he  deems
30        appropriate, including but not limited to a daily  basis.
31        The reasonable and necessary expenses of the Commissioner
32        during the period of the monitoring shall be borne by the
33        subject  bank.   The Commissioner shall furnish the State
34        bank a statement of time and expenses if requested to  do
HB1269 Enrolled            -183-               LRB9001000EGfg
 1        so  within  30  days  of the conclusion of the monitoring
 2        period.
 3             (a-2)  On and after January 1, 1990, the  reasonable
 4        and   necessary   expenses  of  the  Commissioner  during
 5        examination  of  the  performance  of   electronic   data
 6        processing services under subsection (2.5) shall be borne
 7        by  the  banks  for  which the services are provided.  An
 8        amount, based upon a  fee  structure  prescribed  by  the
 9        Commissioner,  shall  be  paid by the banks or, after May
10        31, 1997, branches of out-of-state  banks  receiving  the
11        electronic  data  processing services along with the Call
12        Report  Fee  assessed  under  paragraph   (a)   of   this
13        subsection (3).
14             (a-3)  After   May  31,  1997,  the  reasonable  and
15        necessary expenses of the Commissioner during examination
16        of the performance of electronic data processing services
17        under subsection (2.5) at or on  behalf  of  branches  of
18        out-of-state  banks  shall  be  borne by the out-of-state
19        banks, unless those  expenses  are  borne  by  the  state
20        regulatory  authorities  that  chartered the out-of-state
21        banks, as determined by  cooperative  agreements  between
22        the  Commissioner  and  the  state regulatory authorities
23        that chartered the out-of-state banks.
24             (b)  "Fiscal year" for purposes of this  Section  48
25        is  defined  as a period beginning July 1 of any year and
26        ending June 30 of the next year. The  Commissioner  shall
27        receive  for each fiscal year, commencing with the fiscal
28        year ending June 30, 1987, a contingent fee equal to  the
29        lesser  of  the  aggregate  of the fees paid by all State
30        banks under paragraph (a)  of  subsection  (3)  for  that
31        year, or the amount, if any, whereby the aggregate of the
32        administration expenses, as defined in paragraph (c), for
33        that  fiscal year exceeds the sum of the aggregate of the
34        fees payable by all  State  banks  for  that  year  under
HB1269 Enrolled            -184-               LRB9001000EGfg
 1        paragraph  (a)  of subsection (3), plus all other amounts
 2        collected by the Commissioner for  that  year  under  any
 3        other  provision  of  this Act, plus the aggregate of all
 4        fees collected for that year by  the  Commissioner  under
 5        the  Corporate  Fiduciary Act, excluding the receivership
 6        fees provided  for  in  Section  5-10  of  the  Corporate
 7        Fiduciary  Act,  and  the Foreign Banking Office Act. The
 8        aggregate amount of the contingent fee  thus  arrived  at
 9        for   any  fiscal  year  shall  be  apportioned  amongst,
10        assessed upon, and paid by the State  banks  and  foreign
11        banking   corporations,   respectively,   in   the   same
12        proportion  that  the  fee of each under paragraph (a) of
13        subsection (3), respectively, for that year bears to  the
14        aggregate  for  that  year  of  the  fees collected under
15        paragraph (a) of subsection (3). The aggregate amount  of
16        the  contingent  fee,  and  the  portion  thereof  to  be
17        assessed   upon  each  State  bank  and  foreign  banking
18        corporation, respectively, shall  be  determined  by  the
19        Commissioner  and  shall  be  paid by each, respectively,
20        within 120 days of the close of the period for which  the
21        contingent  fee  is  computed  and  is  payable,  and the
22        Commissioner shall give 20 days  advance  notice  of  the
23        amount  of  the  contingent fee payable by the State bank
24        and of the date fixed by the Commissioner for payment  of
25        the fee.
26             (c)  The  "administration  expenses"  for any fiscal
27        year shall mean the ordinary and contingent expenses  for
28        that  year  incident  to making the examinations provided
29        for by, and for otherwise administering,  this  Act,  the
30        Corporate Fiduciary Act, excluding the expenses paid from
31        the  Corporate Fiduciary Receivership account in the Bank
32        and Trust Company Fund, the Foreign Banking  Office  Act,
33        the  Electronic  Fund Transfer Act, and the Illinois Bank
34        Examiners'  Education  Foundation  Act,   including   all
HB1269 Enrolled            -185-               LRB9001000EGfg
 1        salaries   and   other  compensation  paid  for  personal
 2        services rendered for the State by officers or  employees
 3        of  the  State, including the Commissioner and the Deputy
 4        Commissioners,  all  expenditures   for   telephone   and
 5        telegraph  charges,  postage  and  postal charges, office
 6        stationery, supplies and services, and  office  furniture
 7        and  equipment,  including  typewriters  and  copying and
 8        duplicating machines and filing  equipment,  surety  bond
 9        premiums,  and  travel  expenses  of  those  officers and
10        employees, employees, expenditures  or  charges  for  the
11        acquisition,  enlargement  or  improvement of, or for the
12        use of, any office  space,  building,  or  structure,  or
13        expenditures   for   the   maintenance   thereof  or  for
14        furnishing heat, light, or power  with  respect  thereto,
15        all  to  the  extent that those expenditures are directly
16        incidental to such examinations or administration.    The
17        Commissioner  shall  not be required by paragraphs (c) or
18        (d-1) of this subsection (3) to maintain  in  any  fiscal
19        year's  budget appropriated reserves for accrued vacation
20        and accrued sick leave that is required  to  be  paid  to
21        employees  of  the Commissioner upon termination of their
22        service with the Commissioner in an amount that  is  more
23        than  is  reasonably  anticipated to be necessary for any
24        anticipated turnover in employees, whether due to  normal
25        attrition   or   due   to   layoffs,   terminations,   or
26        resignations.
27             (d)  The  aggregate  of  all  fees  collected by the
28        Commissioner under this Act, the Corporate Fiduciary Act,
29        or the Foreign Banking Office Act on and  after  July  1,
30        1979,  shall  be paid promptly after receipt of the same,
31        accompanied by a detailed  statement  thereof,  into  the
32        State  treasury  and shall be set apart in a special fund
33        to be known as the "Bank and Trust Company Fund",  except
34        as  provided  in paragraph (c) of subsection (11) of this
HB1269 Enrolled            -186-               LRB9001000EGfg
 1        Section. The amount from time to time deposited into  the
 2        Bank  and  Trust Company Fund shall be used to offset the
 3        ordinary administrative expenses of the  Commissioner  of
 4        Banks and Real Estate as defined in this Section. Nothing
 5        in  this  amendatory Act of 1979 shall prevent continuing
 6        the  practice  of  paying  expenses  involving  salaries,
 7        retirement, social  security,  and  State-paid  insurance
 8        premiums  of  State  officers  by appropriations from the
 9        General Revenue Fund.  However, the General Revenue  Fund
10        shall  be reimbursed for those payments made on and after
11        July 1, 1979, by an annual transfer  of  funds  from  the
12        Bank and Trust Company Fund.
13             (d-1)  Adequate funds shall be available in the Bank
14        and  Trust  Company  Fund to permit the timely payment of
15        administration expenses.  In each fiscal year  the  total
16        administration  expenses shall be deducted from the total
17        fees collected by  the  Commissioner  and  the  remainder
18        transferred  into  the  Cash Flow Reserve Account, unless
19        the balance of the Cash Flow Reserve Account prior to the
20        transfer  equals  or  exceeds  one-fourth  of  the  total
21        initial appropriations from the Bank  and  Trust  Company
22        Fund for the subsequent year, in which case the remainder
23        shall  be  credited  to  State  banks and foreign banking
24        corporations and  applied  against  their  fees  for  the
25        subsequent  year.  The amount credited to each State bank
26        and foreign banking corporation  shall  be  in  the  same
27        proportion  as  the Call Report Fees paid by each for the
28        year bear to the total Call Report Fees collected for the
29        year.  If, after a transfer  to  the  Cash  Flow  Reserve
30        Account  is  made  or  if  no  remainder is available for
31        transfer, the balance of the Cash Flow Reserve Account is
32        less than one-fourth of the total initial  appropriations
33        for  the  subsequent  year  and the amount transferred is
34        less than 5% of the total Call Report Fees for the  year,
HB1269 Enrolled            -187-               LRB9001000EGfg
 1        additional  amounts  needed to make the transfer equal to
 2        5% of the total Call Report Fees for the  year  shall  be
 3        apportioned amongst, assessed upon, and paid by the State
 4        banks  and  foreign  banking  corporations  in  the  same
 5        proportion   that   the   Call   Report   Fees  of  each,
 6        respectively, for the year bear to the total Call  Report
 7        Fees  collected  for  the  year.   The additional amounts
 8        assessed shall be transferred into the Cash Flow  Reserve
 9        Account.   For  purposes  of  this  paragraph  (d-1), the
10        calculation of the fees  collected  by  the  Commissioner
11        shall  exclude  the  receivership  fees  provided  for in
12        Section 5-10 of the Corporate Fiduciary Act.
13             (e)  The Commissioner may upon  request  certify  to
14        any public record in his keeping and shall have authority
15        to levy a reasonable charge for issuing certifications of
16        any public record in his keeping.
17             (f)  In  addition  to  fees  authorized elsewhere in
18        this Act, the Commissioner  may,  in  connection  with  a
19        review,  approval,  or  provision  of  a  service, levy a
20        reasonable charge to recover  the  cost  of  the  review,
21        approval, or service.
22        (4)  Nothing  contained in this Act shall be construed to
23    limit the obligation relative to examinations and reports  of
24    any  State  bank, deposits in which are to any extent insured
25    by the United States or any agency thereof, nor to  limit  in
26    any  way  the  powers  of  the Commissioner with reference to
27    examinations and reports of that bank.
28        (5)  The  nature  and  condition  of  the  assets  in  or
29    investment of any bonus, pension, or profit sharing plan  for
30    officers  or  employees of every State bank or, after May 31,
31    1997, branch of an out-of-state bank shall be  deemed  to  be
32    included  in  the  affairs of that State bank or branch of an
33    out-of-state bank subject to examination by the  Commissioner
34    under  the  provisions of subsection (2) of this Section, and
HB1269 Enrolled            -188-               LRB9001000EGfg
 1    if the Commissioner shall find from an examination  that  the
 2    condition of or operation of the investments or assets of the
 3    plan  is unlawful, fraudulent, or unsafe, or that any trustee
 4    has  abused  his  trust,  the  Commissioner  shall,  if   the
 5    situation so found by the Commissioner shall not be corrected
 6    to his satisfaction within 60 days after the Commissioner has
 7    given  notice  to the board of directors of the State bank or
 8    out-of-state bank of his findings, report the  facts  to  the
 9    Attorney  General  who  shall thereupon institute proceedings
10    against the State bank or out-of-state  bank,  the  board  of
11    directors  thereof,  or  the  trustees under such plan as the
12    nature of the case may require.
13        (6)  The Commissioner shall have the power:
14             (a)  To promulgate reasonable rules for the  purpose
15        of administering the provisions of this Act.
16             (b)  To    issue   orders   for   the   purpose   of
17        administering the provisions of this  Act  and  any  rule
18        promulgated in accordance with this Act.
19             (c)  To  appoint  hearing officers to execute any of
20        the powers granted to the Commissioner under this Section
21        for the purpose of administering this Act  and  any  rule
22        promulgated in accordance with this Act.
23             (d)  To   subpoena   witnesses,   to   compel  their
24        attendance, to administer an oath, to examine any  person
25        under oath, and to require the production of any relevant
26        books,  papers,  accounts, and documents in the course of
27        and pursuant to any investigation being conducted, or any
28        action being taken, by the Commissioner in respect of any
29        matter relating to the duties imposed upon, or the powers
30        vested in, the Commissioner under the provisions of  this
31        Act or any rule promulgated in accordance with this Act.
32             (e)  To conduct hearings.
33        (7)  Whenever,  in  the  opinion of the Commissioner, any
34    director, officer, employee, or agent of  a  State  bank  or,
HB1269 Enrolled            -189-               LRB9001000EGfg
 1    after  May  31,  1997,  of any branch of an out-of-state bank
 2    shall have violated any law, rule, or order relating to  that
 3    bank  or  shall have engaged in an unsafe or unsound practice
 4    in conducting the business of that bank, the Commissioner may
 5    issue an order of removal. The order shall be served upon the
 6    director, officer, employee, or agent. A copy  of  the  order
 7    shall  be  sent  to  each  director  of  the bank affected by
 8    registered mail.  The  person  affected  by  the  action  may
 9    request  a  hearing  before the State Banking Board within 10
10    days after receipt of the  order  of  removal.   The  hearing
11    shall  be  held by the Board within 30 days after the request
12    has been received by  the  Board.  The  Board  shall  make  a
13    determination approving, modifying, or disapproving the order
14    of  the Commissioner as its final administrative decision. If
15    a hearing is held by the Board,  the  Board  shall  make  its
16    determination  within  60  days  from  the  conclusion of the
17    hearing. Any person affected by a decision of the Board under
18    this subsection (7) of Section 48 of this Act  may  have  the
19    decision  reviewed  only  under  and  in  accordance with the
20    Administrative Review Law  and  the  rules  adopted  pursuant
21    thereto.  A  copy  of the order shall also be served upon the
22    bank of which he is a director, officer, employee, or  agent,
23    whereupon he shall cease to be a director, officer, employee,
24    or  agent  of  that bank.  The order and the findings of fact
25    upon which it is based shall not be made public or  disclosed
26    to  anyone  except  the director, officer, employee, or agent
27    involved and the directors of the  bank  involved,  otherwise
28    than  in  connection  with  proceedings for a violation of or
29    failure to comply with this  Section.  The  Commissioner  may
30    institute  a  civil  action against the director, officer, or
31    agent of the State bank or, after May 31, 1997, of the branch
32    of the out-of-state bank against whom any order provided  for
33    by  this  subsection  (7) of this Section 48 has been issued,
34    and  against  the  State  bank  or,  after  May   31,   1997,
HB1269 Enrolled            -190-               LRB9001000EGfg
 1    out-of-state  bank,  to  enforce compliance with or to enjoin
 2    any violation of the terms of the order. Any person  who  has
 3    been  removed  by  an  order  of  the Commissioner under this
 4    subsection or Section 5-6 of the Corporate Fiduciary Act  may
 5    not thereafter serve as director, officer, employee, or agent
 6    of  any State bank or of any branch of any out-of-state bank,
 7    or of any corporate fiduciary, as defined in  Section  1-5.05
 8    of  the  Corporate Fiduciary Act, unless the Commissioner has
 9    granted prior approval in writing.
10        (8)  The Commissioner may impose civil penalties of up to
11    $10,000  against  any  person  for  each  violation  of   any
12    provision  of  this  Act,  any rule promulgated in accordance
13    with this Act,  any order of the Commissioner, or  any  other
14    action which in the Commissioner's discretion is an unsafe or
15    unsound banking practice.
16        (9)  The Commissioner may impose civil penalties of up to
17    $100  against any person for the first failure to comply with
18    reporting requirements set forth in the report of examination
19    of the bank and up to $200  for  the  second  and  subsequent
20    failures to comply with those reporting requirements.
21        (10)  All   final   administrative   decisions   of   the
22    Commissioner  hereunder  shall  be subject to judicial review
23    pursuant to the provisions of the Administrative Review  Law.
24    For  matters  involving administrative review, venue shall be
25    in either Sangamon County or Cook County.
26        (11)  The endowment fund for the Illinois Bank Examiners'
27    Education Foundation shall be administered as follows:
28             (a)  (Blank).
29             (b)  The  Foundation   is   empowered   to   receive
30        voluntary  contributions,  gifts,  grants,  bequests, and
31        donations on  behalf  of  the  Illinois  Bank  Examiners'
32        Education   Foundation  from  national  banks  and  other
33        persons for the purpose of funding the endowment  of  the
34        Illinois Bank Examiners' Education Foundation.
HB1269 Enrolled            -191-               LRB9001000EGfg
 1             (c)  The  aggregate  of all special educational fees
 2        collected by the Commissioner and  property  received  by
 3        the   Commissioner   on   behalf  of  the  Illinois  Bank
 4        Examiners' Education  Foundation  under  this  subsection
 5        (11)  on  or  after  June  30,  1986, shall be either (i)
 6        promptly paid after receipt of the same, accompanied by a
 7        detailed statement thereof, into the State  Treasury  and
 8        shall  be set apart in a special fund to be known as "The
 9        Illinois Bank Examiners' Education Fund" to  be  invested
10        by  either  the Treasurer of the State of Illinois in the
11        Public  Treasurers'  Investment  Pool  or  in  any  other
12        investment he is authorized to make or  by  the  Illinois
13        State Board of Investment as the board of trustees of the
14        Illinois  Bank Examiners' Education Foundation may direct
15        or  (ii)  deposited  into  an  account  maintained  in  a
16        commercial bank or corporate fiduciary in the name of the
17        Illinois Bank Examiners' Education Foundation pursuant to
18        the order and direction of the Board of Trustees  of  the
19        Illinois Bank Examiners' Education Foundation.
20        (12)  (Blank).
21    (Source: P.A.  88-45;  88-289;  88-481;  88-546; 88-670, eff.
22    12-2-94; 89-208, eff. 9-29-95; 89-317, eff. 8-11-95;  89-508,
23    eff.  7-3-96;  89-567,  eff.  7-26-96;  89-626,  eff. 8-9-96;
24    revised 9-9-96.)
25        Section 2-145.  The Illinois Savings and Loan Act of 1985
26    is amended by changing Section 1-6 as follows:
27        (205 ILCS 105/1-6) (from Ch. 17, par. 3301-6)
28        Sec. 1-6.   General  corporate  powers.   An  association
29    operating  under  this  Act  shall  be  a  body corporate and
30    politic and shall have all of the specific  powers  conferred
31    by  this  Act and, in addition thereto, the following general
32    powers:
HB1269 Enrolled            -192-               LRB9001000EGfg
 1        (a)  To sue and be  sued,  complain  and  defend  in  its
 2    corporate name, and to have a common seal, which it may alter
 3    or renew at pleasure;
 4        (b)  To    obtain   and   maintain   insurance   of   the
 5    association's   withdrawable   capital   by   an    insurance
 6    corporation as defined in this Act;
 7        (c)  Notwithstanding  anything  to the contrary contained
 8    in this Act, to become a member  of  the  Federal  Home  Loan
 9    Bank,  and  to have all of the powers granted to a savings or
10    thrift institution organized under the  laws  of  the  United
11    States  and  which is located and doing business in the State
12    of Illinois, subject to regulations of the Commissioner;
13        (d)  To act as a fiscal agent for the United States,  the
14    State of Illinois or any department, branch, arm or agency of
15    the  State or any unit of local government or school district
16    in the State when duly designated for that  purpose,  and  as
17    agent  to perform the reasonable functions as may be required
18    of it;
19        (e)  To become a member of or deal with  any  corporation
20    or  agency  of the United States or the State of Illinois, to
21    the  extent  that  the  agency  assists  in   furthering   or
22    facilitating the association's purposes or powers and to that
23    end  to purchase stock or securities thereof or deposit money
24    therewith,  and  to  comply  with  any  other  conditions  of
25    membership or credit;
26        (f)  To make donations  in  reasonable  amounts  for  the
27    public  welfare  or  for charitable, scientific, religious or
28    educational purposes;
29        (g)  To adopt and operate  reasonable  insurance,  bonus,
30    profit   sharing,  and  retirement  plans  for  officers  and
31    employees;  likewise,  directors  who   are   not   officers,
32    including,  but  not  limited  to,  advisory,  honorary,  and
33    emeritus directors, may participate in those plans;
34        (h)  To  reject any application for membership, to retire
HB1269 Enrolled            -193-               LRB9001000EGfg
 1    withdrawable capital by enforced retirement  as  provided  in
 2    this  Act  and  the  by-laws, and to limit the issuance of or
 3    payments  on  withdrawable  capital,  subject,  however,   to
 4    contractual obligations;
 5        (i)  To  purchase  stock  in  service corporations and to
 6    invest in any form of indebtedness of any service corporation
 7    as defined  in  this  Act,  subject  to  regulations  of  the
 8    Commissioner;
 9        (j)  To  purchase  stock of a corporation whose principal
10    purpose is to  operate  a  safe  deposit  company  or  escrow
11    service company;
12        (k)  To  act  as  Trustee  or Custodian under the Federal
13    Self-Employed Individuals' Tax Retirement Act of 1962 or  any
14    amendments thereto or any other retirement account and invest
15    any  funds  held in such capacity in a savings account of the
16    institution;
17        (l)  (Blank);
18        (m)  To establish,  maintain  and  operate  terminals  as
19    authorized by the Electronic Fund Transfer Act and by Section
20    5   of   the   Illinois   Banking  Act.   The  establishment,
21    maintenance, operation and location of such  terminals  shall
22    be subject to the approval of the Commissioner;
23        (n)  Subject  to  the  approval  and  regulations  of the
24    Commissioner, an association may purchase or  assume  all  or
25    any  part of the assets or liabilities of an eligible insured
26    bank;
27        (o)  To purchase from a bank, as defined in Section 2  of
28    the  Illinois  Banking  Act,  an insubstantial portion of the
29    total deposits of an insured bank.  For the purpose  of  this
30    subparagraph,  "insubstantial  portion of the total deposits"
31    shall have the same meaning as provided in Section 5(d)(2)(D)
32    of the Federal Deposit Insurance Act;
33        (p)  To effect an acquisition of or conversion to another
34    financial  institution  pursuant  to  Section  205   of   the
HB1269 Enrolled            -194-               LRB9001000EGfg
 1    Financial  Institutions  Reform, Recovery and Enforcement Act
 2    of 1989;
 3        (q)  To pledge its assets:
 4             (1)  to enable it to act as an agent for the sale of
 5        obligations of the United States;
 6             (2)  to secure deposits;
 7             (3)  to secure deposits of money  whenever  required
 8        by the National Bankruptcy Act;
 9             (4)  to  qualify  under Section 2-9 of the Corporate
10        Fiduciary Act; and
11             (5)  to  secure  trust  funds  commingled  with  the
12        institution's funds, whether deposited by the institution
13        or an affiliate of the  institution,  as  required  under
14        Section 2-8 of the Corporate Fiduciary Act; and
15        (r)  To  provide  temporary  periodic  service to persons
16    residing in  a  bona  fide  nursing  home,  senior  citizens'
17    retirement home, or long-term care facility; and
18        (s)  To purchase for its own account shares of stock of a
19    bankers'  bank, described in Section 13(b)(1) of the Illinois
20    Banking Act, on the same terms and conditions as a  bank  may
21    purchase  such shares.  In no event shall the total amount of
22    such stock held by  an  association  in  such  bankers'  bank
23    exceed  10%  of  its capital and surplus (including undivided
24    profits) and in no event shall an  association  acquire  more
25    than  5%  of  any class of voting securities of such bankers'
26    bank; and.
27        (t) (s)  To effect a conversion to a State bank  pursuant
28    to the provisions of the Illinois Banking Act.
29    (Source:  P.A.  88-481;  89-74,  eff.  6-30-95;  89-310, eff.
30    1-1-96; 89-317, eff. 8-11-95; 89-355, eff.  8-17-95;  89-567,
31    eff.  7-26-96;  89-603,  eff.  8-2-96;  89-626,  eff. 8-9-96;
32    revised 9-13-96.)
33        Section 2-150.   The  Savings  Bank  Act  is  amended  by
HB1269 Enrolled            -195-               LRB9001000EGfg
 1    changing Section 1008 as follows:
 2        (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
 3        Sec. 1008. General corporate powers.
 4        (a)  A  savings  bank operating under this Act shall be a
 5    body corporate and politic and shall have all of the specific
 6    powers conferred by this Act and  in  addition  thereto,  the
 7    following general powers:
 8             (1)  To sue and be sued, complain, and defend in its
 9        corporate  name  and  to have a common seal, which it may
10        alter or renew at pleasure.
11             (2)  To obtain and maintain insurance by  a  deposit
12        insurance corporation as defined in this Act.
13             (3)  To act as a fiscal agent for the United States,
14        the  State of Illinois or any department, branch, arm, or
15        agency of the State or any unit of  local  government  or
16        school  district  in  the State, when duly designated for
17        that  purpose,  and  as  agent  to   perform   reasonable
18        functions as may be required of it.
19             (4)  To   become  a  member  of  or  deal  with  any
20        corporation or agency of the United States or  the  State
21        of  Illinois,  to  the  extent that the agency assists in
22        furthering or facilitating its purposes or powers and  to
23        that  end  to  purchase  stock  or  securities thereof or
24        deposit money therewith, and to  comply  with  any  other
25        conditions of membership or credit.
26             (5)  To make donations in reasonable amounts for the
27        public  welfare or for charitable, scientific, religious,
28        or educational purposes.
29             (6)  To  adopt  and  operate  reasonable  insurance,
30        bonus, profit sharing, and retirement plans for  officers
31        and  employees  and  for  directors  including,  but  not
32        limited  to,  advisory, honorary, and emeritus directors,
33        who are not officers or employees.
HB1269 Enrolled            -196-               LRB9001000EGfg
 1             (7)  To reject any application  for  membership;  to
 2        retire   deposit   accounts  by  enforced  retirement  as
 3        provided in this Act and the bylaws;  and  to  limit  the
 4        issuance  of,  or payments on, deposit accounts, subject,
 5        however, to contractual obligations.
 6             (8)  To purchase stock in service  corporations  and
 7        to  invest  in  any  form  of indebtedness of any service
 8        corporation  as  defined  in   this   Act,   subject   to
 9        regulations of the Commissioner.
10             (9)  To   purchase  stock  of  a  corporation  whose
11        principal purpose is to operate a safe deposit company or
12        escrow service company.
13             (10)  To  exercise  all  the  powers  necessary   to
14        qualify  as a trustee or custodian under federal or State
15        law, provided that the authority to  accept  and  execute
16        trusts  is  subject  to  the  provisions of the Corporate
17        Fiduciary Act and to the supervision of those  activities
18        by the Commissioner of Banks and Real Estate.
19             (11)  (Blank).
20             (12)  To  establish, maintain, and operate terminals
21        as authorized by the Electronic Fund Transfer  Act.   The
22        establishment,  maintenance,  operation,  and location of
23        those terminals shall be subject to the approval  of  the
24        Commissioner.
25             (13)  Pledge its assets:
26                  (A)  to  enable it to act as agent for the sale
27             of obligations of the United States;
28                  (B)  to secure deposits;
29                  (C)  to  secure  deposits  of  money   whenever
30             required by the National Bankruptcy Act;
31                  (D)  to   qualify  under  Section  2-9  of  the
32             Corporate Fiduciary Act; and
33                  (E)  to secure trust funds commingled with  the
34             savings  bank's  funds,  whether  deposited  by  the
HB1269 Enrolled            -197-               LRB9001000EGfg
 1             savings bank or an affiliate of the savings bank, as
 2             required   under   Section   2-8  of  the  Corporate
 3             Fiduciary Act.
 4             (14)  To accept for payment at a future date not  to
 5        exceed one year from the date of acceptance, drafts drawn
 6        upon  it  by  its  customers;  and  to  issue, advise, or
 7        confirm letters of credit authorizing holders thereof  to
 8        draw drafts upon it or its correspondents.
 9             (15)  Subject    to    the    regulations   of   the
10        Commissioner, to own and lease personal property acquired
11        by the savings bank  at  the  request  of  a  prospective
12        lessee  and,  upon the agreement of that person, to lease
13        the personal property.
14             (16)  To establish temporary service booths  at  any
15        International  Fair in this State that is approved by the
16        United States Department of Commerce for the duration  of
17        the  international  fair  for  the purpose of providing a
18        convenient place for foreign trade customers to  exchange
19        their   home   countries'  currency  into  United  States
20        currency or the converse.  To provide temporary  periodic
21        service  to persons residing in a bona fide nursing home,
22        senior  citizens'  retirement  home,  or  long-term  care
23        facility.   These  powers  shall  not  be  construed   as
24        establishing  a  new  place or change of location for the
25        savings bank providing the service booth.
26             (17)  To   indemnify   its   officers,    directors,
27        employees,  and  agents,  as  authorized for corporations
28        under Section 8.75 of the Business  Corporations  Act  of
29        1983.
30             (18)  To  provide data processing services to others
31        on a for-profit basis.
32             (19)  To  utilize  any  electronic   technology   to
33        provide customers with home banking services.
34             (20)  Subject    to    the    regulations   of   the
HB1269 Enrolled            -198-               LRB9001000EGfg
 1        Commissioner, to enter into an  agreement  to  act  as  a
 2        surety.
 3             (21)  Subject    to    the    regulations   of   the
 4        Commissioner,  to  issue  credit  cards,  extend   credit
 5        therewith,  and  otherwise  engage  in  or participate in
 6        credit card operations.
 7             (22)  To purchase for  its  own  account  shares  of
 8        stock  of  a bankers' bank, described in Section 13(b)(1)
 9        of the Illinois  Banking  Act,  on  the  same  terms  and
10        conditions  as  a  bank  may purchase such shares.  In no
11        event shall the total amount of  such  stock  held  by  a
12        savings  bank an association in such bankers' bank exceed
13        10% of  its  capital  and  surplus  (including  undivided
14        profits)  and  in  no  event  shall  a  savings  bank  an
15        association  acquire  more than 5% of any class of voting
16        securities of such bankers' bank.
17        (b)  If this Act fails to provide  specific  guidance  in
18    matters  of  corporate  governance,  the  provisions  of  the
19    Business Corporation Act of 1983 may be used.
20    (Source:  P.A.  88-112;  88-481; 88-670, eff. 12-2-94; 89-74,
21    eff. 6-30-95; 89-310,  eff.  1-1-96;  89-317,  eff.  8-11-95;
22    89-355,  eff.  8-17-95;  89-508,  eff.  7-3-96;  89-603, eff.
23    8-2-96; 89-626, eff. 8-9-96; revised 9-9-96.)
24        Section 2-155.  The Corporate Fiduciary Act is amended by
25    changing Section 3-3 as follows:
26        (205 ILCS 620/3-3) (from Ch. 17, par. 1553-3)
27        Sec. 3-3.  Successor trustee.
28        (a)  If any corporate fiduciary merges into,  or  becomes
29    consolidated  with,  another corporate fiduciary qualified to
30    administer trusts or is succeeded in its  trust  business  by
31    any  corporate  fiduciary  by  purchase or otherwise; or if a
32    bank  holding  company  causes  a  subsidiary,  qualified  to
HB1269 Enrolled            -199-               LRB9001000EGfg
 1    administer trusts, to succeed to part or  all  of  the  trust
 2    business  of  any  other  subsidiary of the same bank holding
 3    company, the  surviving,  consolidated,  successor  corporate
 4    fiduciary  or  subsidiary shall become successor fiduciary in
 5    place  of  such  predecessor  corporate   fiduciary,   unless
 6    expressly   prohibited   by   the  provisions  of  the  trust
 7    instrument, with all the rights, powers and duties which were
 8    granted  to  or  imposed  on   such   predecessor   corporate
 9    fiduciary.
10        (b)  (Blank).
11        (c)  Notwithstanding   any  other  provision  of  law,  a
12    corporate fiduciary may delegate to  any  of  its  affiliates
13    qualified  to administer trusts, any or all fiduciary duties,
14    actions or decisions, discretionary  or  otherwise,  and  the
15    delegating  corporate  fiduciary  shall  not  be  required to
16    review any  delegated  actions  or  decisions  taken  by  the
17    affiliate.   The  term  "affiliate" means any state bank, any
18    national bank, any trust company, or any  other  corporation,
19    which  that is qualified to act as a fiduciary in this or any
20    other  state,  and  which  that  is  a  member  of  the  same
21    affiliated group (within the meaning of Section 1504  of  the
22    Internal Revenue Code of 1986, as amended).
23    (Source:  P.A.  89-205,  eff.  1-1-96;  89-364, eff. 8-18-95;
24    89-567, eff. 7-26-96; 89-686, eff. 6-1-97; revised 1-15-97.)
25        Section 2-160.  The Promissory Note and Bank Holiday  Act
26    is amended by changing Section 17 as follows:
27        (205 ILCS 630/17) (from Ch. 17, par. 2201)
28        Sec. 17. Holidays.
29        (a)  The  following  days  shall be legal holidays in the
30    State of Illinois upon which day  a  bank  may,  but  is  not
31    required to, remain closed:
32        the first day of January (New Year's Day);
HB1269 Enrolled            -200-               LRB9001000EGfg
 1        the  third Monday in January (observance of Martin Luther
 2    King, Jr.'s birthday);
 3        the twelfth day in February (Abraham Lincoln's birthday);
 4        the third Monday in February (Presidents Day);
 5        the  first  Monday  in  March  (observance   of   Casimir
 6    Pulaski's birthday);
 7        the Friday preceding Easter Sunday (Good Friday);
 8        the last Monday of May (Memorial Day);
 9        the fourth day of July (Independence Day);
10        the first Monday in September (Labor Day);
11        the second Monday in October (Columbus Day);
12        the eleventh day of November (Veterans' Day);
13        the fourth Thursday in November (Thanksgiving Day);
14        the twenty-fifth day in December (Christmas Day);
15        the  days upon which the general elections for members of
16    the House of Representatives are held, and any day proclaimed
17    by the Governor of this State as a legal  holiday.   From  12
18    o'clock noon to 12 o'clock midnight of each Saturday shall be
19    considered  a half holiday.  In addition to such holidays and
20    half-holidays, a bank may select  one  day  of  the  week  to
21    remain closed, as provided in subsection (b) of this Section.
22        (b)  Any bank doing business within this State may select
23    any  one  day of the week to remain closed on a regular basis
24    upon adoption of a resolution by the board  of  directors  of
25    such  bank  designating  the day selected and upon filing and
26    publishing a copy of such resolution as hereinafter required.
27    Any such resolution shall be deemed effective for the purpose
28    of this Section only when a copy  thereof,  certified  by  an
29    officer  having  charge of the records of such bank, is filed
30    with the Recorder of the county in which such bank is located
31    and published once each week for  3  successive  weeks  in  a
32    newspaper  of  general  circulation  in  such  county.   Such
33    publication  shall be accomplished by, and at the expense of,
34    the bank, and the bank shall submit to  the  Commissioner  of
HB1269 Enrolled            -201-               LRB9001000EGfg
 1    Banks and Real Estate such evidence of the publication as the
 2    Commissioner  shall  deem  appropriate.   Any  such selection
 3    shall remain in full force and effect until  a  copy  of  the
 4    later  resolution  of  the  board  of directors of such bank,
 5    certified in like manner, terminating or  altering  any  such
 6    prior  selection  shall  be  filed  and published in the same
 7    manner as such prior resolution.
 8        (c)  If an occasion arises when a state  bank  wishes  to
 9    remain  closed on a particular day, other than a day on which
10    the bank has selected to remain closed on a regular basis  as
11    provided  in  this Section, such state bank may remain closed
12    on such an occasion after first sending to the Commissioner a
13    copy of a  resolution  adopted  by  the  board  of  directors
14    authorizing  the  bank  to remain closed on such occasion and
15    notice of the intent to remain closed on such occasion  shall
16    be  conspicuously  posted  in  the  lobby of the main banking
17    office and any branches of such bank for at least 3 weeks  in
18    advance  of  such  occasion.   Any  day  which any bank doing
19    business within the  State  shall  select  to  remain  closed
20    pursuant to this Section shall, with respect to such bank, be
21    treated and considered as a Sunday.
22        (d)  All  legal  holidays,  the half holidays and any day
23    selected by a bank doing business within the State to  remain
24    closed,  shall,  for  all purposes whatsoever, as regards the
25    presenting  for  payment  or  acceptance,  the  maturity  and
26    protesting and giving of notice of the dishonor of  bills  of
27    exchange,   bank   checks  and  promissory  notes  and  other
28    negotiable or commercial paper or instrument, be treated  and
29    considered  as  a  Sunday.  When  any  such  holidays fall on
30    Sunday,  the  Monday  next  following  shall  be   held   and
31    considered  such holiday. All notes, bills, drafts, checks or
32    other evidence of indebtedness, falling due  or  maturing  on
33    either  of such days, shall be deemed as due or maturing upon
34    the day following, and when 2 or  more  of  these  days  come
HB1269 Enrolled            -202-               LRB9001000EGfg
 1    together,  or  immediately  succeeding  each other, then such
 2    instruments, paper or indebtedness shall be deemed as due  or
 3    having matured on the day following the last of such days.
 4        (e)  Any  act  authorized,  required  or  permitted to be
 5    performed at or by or with respect to any bank doing business
 6    within the State on a day which it  has  selected  to  remain
 7    closed  under  this  Section  may be so performed on the next
 8    succeeding business day and no liability or loss of rights of
 9    any kind shall result from such delay.
10        (f)  Nothing in this Act shall in any manner  affect  the
11    validity  of,  or  render  void  or  voidable,  the  payment,
12    certification,  or  acceptance of a check or other negotiable
13    instrument, or any other transaction by a bank in this State,
14    because done or performed on any Saturday,  Sunday,  holiday,
15    or any day selected by a bank to remain closed, or during any
16    time  other  than  regular banking hours; but no bank in this
17    State, which by law or custom is entitled to remain  open  or
18    to  close for the whole or any part of any day selected by it
19    to remain open or to close, is  compelled  to  close,  or  to
20    remain open for the transaction of business or to perform any
21    of  the  acts  or  transactions  aforesaid  except at its own
22    option.
23    (Source: P.A. 89-508,  eff.  7-3-96;  89-567,  eff.  7-26-96;
24    revised 9-10-96.)
25        Section  2-165.   The Nursing Home Care Act is amended by
26    changing Section 1-113 as follows:
27        (210 ILCS 45/1-113) (from Ch. 111 1/2, par. 4151-113)
28        Sec. 1-113.   "Facility"  or  "long-term  care  facility"
29    means  a  private  home, institution, building, residence, or
30    any other place, whether operated for profit  or  not,  or  a
31    county  home  for  the  infirm  and  chronically ill operated
32    pursuant to Division 5-21 or 5-22 of the  Counties  Code,  or
HB1269 Enrolled            -203-               LRB9001000EGfg
 1    any  similar  institution operated by a political subdivision
 2    of  the  State  of  Illinois,  which  provides,  through  its
 3    ownership or management, personal  care,  sheltered  care  or
 4    nursing  for  3 or more persons, not related to the applicant
 5    or owner by blood or marriage.  It includes  skilled  nursing
 6    facilities  and  intermediate  care facilities as those terms
 7    are defined in Title XVIII  and  Title  XIX  of  the  Federal
 8    Social Security Act.
 9        "Facility" does not include the following:
10        (1)  A  home, institution, or other place operated by the
11    federal government or agency thereof,  or  by  the  State  of
12    Illinois;
13        (2)  A  hospital,  sanitarium, or other institution whose
14    principal activity or business is the  diagnosis,  care,  and
15    treatment  of  human  illness  through  the  maintenance  and
16    operation as organized facilities therefor, which is required
17    to be licensed under the Hospital Licensing Act;
18        (3)  Any  "facility  for  child  care"  as defined in the
19    Child Care Act of 1969;
20        (4)  Any "Community Living Facility" as  defined  in  the
21    Community Living Facilities Licensing Act;
22        (5)  Any  "community  residential alternative" as defined
23    in the Community Residential Alternatives Licensing Act;
24        (6)  Any nursing home or sanatorium  operated  solely  by
25    and  for  persons  who  rely  exclusively  upon  treatment by
26    spiritual means through prayer, in accordance with the  creed
27    or   tenets   of  any  well-recognized  church  or  religious
28    denomination. However, such nursing home or sanatorium  shall
29    comply  with  all local laws and rules relating to sanitation
30    and safety;
31        (7)  Any facility licensed by  the  Department  of  Human
32    Services  as  a  community-integrated  living  arrangement as
33    defined  in  the  Community-Integrated  Living   Arrangements
34    Licensure and Certification Act;
HB1269 Enrolled            -204-               LRB9001000EGfg
 1        (8)  Any   "Supportive   Residence"  licensed  under  the
 2    Supportive Residences Licensing Act; or
 3        (9)  Any "supportive living facility"  in  good  standing
 4    with  the  demonstration  project  established  under Section
 5    5-5.01a of the Illinois Public Aid Code.
 6    (Source: P.A. 89-499,  eff.  6-28-96;  89-507,  eff.  7-1-97;
 7    revised 8-26-96.)
 8        Section 2-170.  The Illinois Insurance Code is amended by
 9    changing and renumbering multiple versions of Section 356r as
10    follows:
11        (215 ILCS 5/356r)
12        Sec. 356r.  Woman's principal health care provider.
13        (a)  An individual or group policy of accident and health
14    insurance  or a managed care plan amended, delivered, issued,
15    or  renewed  in  this  State  after  November  14,  1996  the
16    effective date of this Section that requires  an  insured  or
17    enrollee  to designate an individual to coordinate care or to
18    control access to health care services shall  also  permit  a
19    female  insured  or  enrollee  to  designate  a participating
20    woman's principal health care provider.
21        (b)  If a female insured or  enrollee  has  designated  a
22    woman's  principal  health care provider, then the insured or
23    enrollee must be given direct access to the woman's principal
24    health care provider for services covered by  the  policy  or
25    plan  without  the  need  for  a  referral or prior approval.
26    Nothing shall prohibit the insurer or managed care plan  from
27    requiring  prior  authorization  or  approval  from  either a
28    primary care provider or the woman's  principal  health  care
29    provider for referrals for additional care or services.
30        (c)  For the purposes of this Section the following terms
31    are defined:
32             (1)  "Woman's  principal health care provider" means
HB1269 Enrolled            -205-               LRB9001000EGfg
 1        a physician licensed to practice medicine in all  of  its
 2        branches specializing in obstetrics or gynecology.
 3             (2)  "Managed   care   entity"   means   any  entity
 4        including  a  licensed  insurance  company,  hospital  or
 5        medical service plan,  health  maintenance  organization,
 6        limited  health  service organization, preferred provider
 7        organization, third party administrator, an  employer  or
 8        employee  organization,  or  any  person  or  entity that
 9        establishes,  operates,  or  maintains   a   network   of
10        participating providers.
11             (3)  "Managed  care plan" means a plan operated by a
12        managed care entity that provides for  the  financing  of
13        health  care  services  to  persons  enrolled in the plan
14        through:
15                  (A)  organizational  arrangements  for  ongoing
16             quality assurance, utilization review  programs,  or
17             dispute resolution; or
18                  (B)  financial  incentives for persons enrolled
19             in the plan to use the participating  providers  and
20             procedures covered by the plan.
21             (4)  "Participating  provider" means a physician who
22        has contracted with an insurer or managed  care  plan  to
23        provide  services  to insureds or enrollees as defined by
24        the contract.
25        (d)  The original provisions of this Section  became  law
26    on  July  17,  1996  and  took take effect November 14, 1996,
27    which is 120 days after becoming law.
28    (Source: P.A. 89-514; revised 1-2-97.)
29        (215 ILCS 5/356s)
30        Sec. 356s. 356r. Post-parturition care.  An individual or
31    group policy of accident and health insurance  that  provides
32    maternity  coverage  and  is  amended,  delivered, issued, or
33    renewed after the effective date of this  amendatory  Act  of
HB1269 Enrolled            -206-               LRB9001000EGfg
 1    1996 shall provide coverage for the following:
 2             (1)  a   minimum  of  48  hours  of  inpatient  care
 3        following a vaginal  delivery  for  the  mother  and  the
 4        newborn, except as otherwise provided in this Section; or
 5             (2)  a   minimum  of  96  hours  of  inpatient  care
 6        following a delivery by caesarian section for the  mother
 7        and   newborn,  except  as  otherwise  provided  in  this
 8        Section.
 9        A shorter length of hospital inpatient stay for  services
10    related  to maternity and newborn care may be provided if the
11    attending physician licensed to practice medicine in  all  of
12    its branches determines, in accordance with the protocols and
13    guidelines developed by the American College of Obstetricians
14    and Gynecologists or the American Academy of Pediatrics, that
15    the  mother  and  the newborn meet the appropriate guidelines
16    for that length of stay based upon evaluation of  the  mother
17    and   newborn   and   the  coverage  and  availability  of  a
18    post-discharge physician office visit or in-home nurse  visit
19    to  verify  the condition of the infant in the first 48 hours
20    after discharge.
21    (Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)
22        Section 2-175.  The Child Care Act of 1969 is amended  by
23    changing Section 7 as follows:
24        (225 ILCS 10/7) (from Ch. 23, par. 2217)
25        Sec.  7.   (a)  The Department must prescribe and publish
26    minimum standards for licensing that  apply  to  the  various
27    types  of  facilities  for child care defined in this Act and
28    that are equally applicable to like  institutions  under  the
29    control  of the Department and to foster family homes used by
30    and under the direct  supervision  of  the  Department.   The
31    Department  shall  seek  the advice and assistance of persons
32    representative of the various types of child care  facilities
HB1269 Enrolled            -207-               LRB9001000EGfg
 1    in establishing such standards.  The standards prescribed and
 2    published  under  this  Act  take  effect  as provided in the
 3    Illinois Administrative Procedure Act, and are restricted  to
 4    regulations pertaining to:
 5             (1)  The  operation  and conduct of the facility and
 6        responsibility it assumes for child care;
 7             (2)  The character, suitability  and  qualifications
 8        of  the  applicant and other persons directly responsible
 9        for the care and welfare of children served.   All  child
10        day  care center licensees and employees who are required
11        to report child abuse or neglect  under  the  Abused  and
12        Neglected Child Reporting Act shall be required to attend
13        training  on  recognizing  child  abuse  and  neglect, as
14        prescribed by Department rules;
15             (3)  The general financial ability and competence of
16        the applicant to provide necessary care for children  and
17        to maintain prescribed standards;
18             (4)  The  number of individuals or staff required to
19        insure adequate supervision  and  care  of  the  children
20        received.   The  standards  shall provide that each child
21        care institution,  maternity  center,  day  care  center,
22        group  home, day care home, and group day care home shall
23        have on its premises during its  hours  of  operation  at
24        least  one  staff  member  certified in first aid, in the
25        Heimlich maneuver and in cardiopulmonary resuscitation by
26        the American Red Cross or other organization approved  by
27        rule of the Department.  Child welfare agencies shall not
28        be   subject   to   such  a  staffing  requirement.   The
29        Department may offer, or arrange for the offering,  on  a
30        periodic  basis  in  each  community  in  this  State  in
31        cooperation  with  the  American  Red Cross, the American
32        Heart  Association  or  other  appropriate  organization,
33        voluntary programs to train operators  of  foster  family
34        homes and day care homes in first aid and cardiopulmonary
HB1269 Enrolled            -208-               LRB9001000EGfg
 1        resuscitation;
 2             (5)  The  appropriateness,  safety,  cleanliness and
 3        general adequacy of the premises,  including  maintenance
 4        of   adequate   fire   prevention  and  health  standards
 5        conforming to State laws and municipal codes  to  provide
 6        for the physical comfort, care and well-being of children
 7        received;
 8             (6)  Provisions   for  food,  clothing,  educational
 9        opportunities, program, equipment and individual supplies
10        to assure the  healthy  physical,  mental  and  spiritual
11        development of children served;
12             (7)  Provisions  to  safeguard  the  legal rights of
13        children served;
14             (8)  Maintenance  of  records  pertaining   to   the
15        admission,  progress,  health  and discharge of children,
16        including, for day  care  centers  and  day  care  homes,
17        records  indicating  each  child  has  been  immunized as
18        required by  State  regulations.   The  Department  shall
19        require  proof  that children enrolled in a facility have
20        been immunized against Haemophilus Influenzae B (HIB);
21             (9)  Filing of reports with the Department;
22             (10)  Discipline of children;
23             (11)  Protection and  fostering  of  the  particular
24        religious faith of the children served;
25             (12)  Provisions  prohibiting  firearms  on day care
26        center  premises  except  in  the  possession  of   peace
27        officers;
28             (13)  Provisions  prohibiting  handguns  on day care
29        home premises except in the possession of peace  officers
30        or other adults who must possess a handgun as a condition
31        of  employment  and  who  reside on the premises of a day
32        care home;
33             (14)  Provisions   requiring   that   any    firearm
34        permitted  on  day care home premises, except handguns in
HB1269 Enrolled            -209-               LRB9001000EGfg
 1        the possession of peace officers,  shall  be  kept  in  a
 2        disassembled   state,   without   ammunition,  in  locked
 3        storage, inaccessible to  children  and  that  ammunition
 4        permitted  on  day  care  home  premises shall be kept in
 5        locked  storage  separate  from  that   of   disassembled
 6        firearms, inaccessible to children;
 7             (15)  Provisions  requiring  notification of parents
 8        or guardians enrolling children at a day care home of the
 9        presence in  the  day  care  home  of  any  firearms  and
10        ammunition  and  of  the  arrangements  for the separate,
11        locked storage of such firearms and ammunition.
12        (b)  If, in a facility for general child care, there  are
13    children  diagnosed  as  mentally  ill,  mentally retarded or
14    physically handicapped, who are determined to be in  need  of
15    special  mental  treatment or of nursing care, or both mental
16    treatment and nursing care, the  Department  shall  seek  the
17    advice   and   recommendation  of  the  Department  of  Human
18    Services,  the  Department  of   Public   Health,   or   both
19    Departments  regarding  the residential treatment and nursing
20    care provided by the institution.
21        (c)  The Department shall investigate any person applying
22    to be licensed as a foster parent to determine whether  there
23    is  any  evidence  of  current  drug  or alcohol abuse in the
24    prospective foster family.  The Department shall not  license
25    a person as a foster parent if drug or alcohol abuse has been
26    identified  in the foster family or if a reasonable suspicion
27    of such abuse exists, except that the Department may grant  a
28    foster  parent  license  to  an  applicant identified with an
29    alcohol or drug problem if  the  applicant  has  successfully
30    participated   in  an  alcohol  or  drug  treatment  program,
31    self-help group, or other suitable activities.
32        (d)  The Department, in applying standards prescribed and
33    published,  as  herein  provided,  shall  offer  consultation
34    through employed staff or other qualified persons  to  assist
HB1269 Enrolled            -210-               LRB9001000EGfg
 1    applicants  and  licensees in meeting and maintaining minimum
 2    requirements for a license and  to  help  them  otherwise  to
 3    achieve  programs  of  excellence  related  to  the  care  of
 4    children  served.  Such  consultation shall include providing
 5    information  concerning  education  and  training  in   early
 6    childhood development to providers of day care home services.
 7    The  Department may provide or arrange for such education and
 8    training for those providers who request such assistance.
 9        (e)  The Department shall distribute copies of  licensing
10    standards  to  all  licensees  and  applicants for a license.
11    Each licensee or holder of a permit shall  distribute  copies
12    of   the   appropriate  licensing  standards  and  any  other
13    information  required  by  the  Department  to   child   care
14    facilities under its supervision.  Each licensee or holder of
15    a  permit  shall  maintain  appropriate  documentation of the
16    distribution of the standards.  Such documentation  shall  be
17    part of the records of the facility and subject to inspection
18    by authorized representatives of the Department.
19        (f)  The  Department  shall prepare summaries of day care
20    licensing standards.  Each licensee or holder of a permit for
21    a  day  care  facility  shall  distribute  a  copy   of   the
22    appropriate summary and any other information required by the
23    Department,  to the legal guardian of each child cared for in
24    that facility at the time  when  the  child  is  enrolled  or
25    initially placed in the facility. The licensee or holder of a
26    permit  for  a  day  care  facility  shall secure appropriate
27    documentation  of  the  distribution  of  the   summary   and
28    brochure.  Such  documentation shall be a part of the records
29    of the facility and subject to inspection  by  an  authorized
30    representative of the Department.
31        (g)  The Department shall distribute to each licensee and
32    holder  of  a  permit  copies  of  the  licensing  or  permit
33    standards   applicable   to  such  person's  facility.   Each
34    licensee or holder  of  a  permit  shall  make  available  by
HB1269 Enrolled            -211-               LRB9001000EGfg
 1    posting at all times in a common or otherwise accessible area
 2    a  complete  and  current set of licensing standards in order
 3    that all employees of  the  facility  may  have  unrestricted
 4    access  to  such  standards.    All employees of the facility
 5    shall have reviewed the standards and any subsequent changes.
 6    Each  licensee  or  holder  of  a   permit   shall   maintain
 7    appropriate  documentation of the current review of licensing
 8    standards by all employees.  Such records shall  be  part  of
 9    the  records  of  the  facility  and subject to inspection by
10    authorized representatives of the Department.
11        (h)  Any  standards  involving   physical   examinations,
12    immunization,  or medical treatment shall include appropriate
13    exemptions for children whose parents object thereto  on  the
14    grounds that they conflict with the tenets and practices of a
15    recognized  church  or  religious  organization, of which the
16    parent is an adherent or member, and for children who  should
17    not be subjected to immunization for clinical reasons.
18    (Source:  P.A.  89-274,  eff.  1-1-96;  89-507,  eff. 7-1-97;
19    89-648, eff. 8-9-96; revised 9-12-96.)
20        Section 2-180.  The Health Care Worker  Background  Check
21    Act is amended by changing Sections 15 and 65 as follows:
22        (225 ILCS 46/15)
23        Sec. 15.  Definitions.  For the purposes of this Act, the
24    following definitions apply:
25        "Applicant" means an individual seeking employment with a
26    health care employer who has received a bona fide conditional
27    offer of employment.
28        "Conditional offer of employment" means a bona fide offer
29    of  employment  by  a  health  care employer to an applicant,
30    which is contingent upon the receipt of  a  report  from  the
31    Department of State Police indicating that the applicant does
32    not  have  a  record  of  conviction  of  any of the criminal
HB1269 Enrolled            -212-               LRB9001000EGfg
 1    offenses enumerated in Section 25.
 2        "Direct care" means the  provision  of  nursing  care  or
 3    assistance  with meals, dressing, movement, bathing, or other
 4    personal needs or maintenance,  or  general  supervision  and
 5    oversight  of  the  physical  and  mental  well-being  of  an
 6    individual  who  is  incapable  of managing his or her person
 7    whether or  not  a  guardian  has  been  appointed  for  that
 8    individual.
 9        "Health care employer" means:
10        (1)  the owner or licensee of any of the following:
11             (i)  a  community living facility, as defined in the
12        Community Living Facilities Act;
13             (ii)  a life care facility, as defined in  the  Life
14        Care Facilities Act;
15             (iii)  a  long-term care facility, as defined in the
16        Nursing Home Care Act;
17             (iv)  a home health agency, as defined in  the  Home
18        Health Agency Licensing Act;
19             (v)  a  full  hospice,  as  defined  in  the Hospice
20        Program Licensing Act;
21             (vi)  a  hospital,  as  defined  in   the   Hospital
22        Licensing Act;
23             (vii)  a   community   residential  alternative,  as
24        defined  in  the   Community   Residential   Alternatives
25        Licensing Act;
26             (viii)  a  nurse  agency,  as  defined  in the Nurse
27        Agency Licensing Act;
28             (ix)  a respite care provider,  as  defined  in  the
29        Respite Program Act;
30        (2)  a  day  training program certified by the Department
31    of Human Services;  or
32        (3)  a community integrated living  arrangement  operated
33    by  a  community  mental  health  and  developmental  service
34    agency,   as   defined  in  the  Community-Integrated  Living
HB1269 Enrolled            -213-               LRB9001000EGfg
 1    Arrangements Licensing and Certification Act.
 2        "Initiate" means the obtaining of the authorization for a
 3    record check from a student,  applicant,  or  employee.   The
 4    educational  entity  or  health care employer or its designee
 5    shall transmit all necessary  information  and  fees  to  the
 6    Illinois State Police within 10 working days after receipt of
 7    the authorization.
 8    (Source:  P.A.  89-197,  eff.  7-21-95;  89-507, eff. 7-1-97;
 9    89-674, eff. 8-14-96; revised 9-12-96.)
10        (225 ILCS 46/65)
11        Sec. 65.  Health Care Worker Task Force.  A  Health  Care
12    Worker  Task  Force  shall be appointed no later than July 1,
13    1996, to study and make recommendations on statutory  changes
14    to this Act.
15        (a)  The  Task  Force  shall  monitor  the  status of the
16    implementation   of   this   Act   and   monitor    complaint
17    investigations  relating  to  this  Act  by the Department on
18    Aging,   Department   of   Public   Health,   Department   of
19    Professional Regulation, and the Department of Human Services
20    to determine the criminal background, if any, of health  care
21    workers   who   have   had   findings  of  abuse,  theft,  or
22    exploitation.
23        (b)  The   Task   Force   shall   make    recommendations
24    concerning:
25             (1)  additional  health  care  positions,  including
26        licensed  individuals  and  volunteers,  that  should  be
27        included in the Act;
28             (2)  development      of     a     transition     to
29        fingerprint-based  State  and  federal  criminal  records
30        checks for all direct care applicants or employees;
31             (3)  development of a system that is  affordable  to
32        applicants;
33             (4)  modifications   to   the   list   of   offenses
HB1269 Enrolled            -214-               LRB9001000EGfg
 1        enumerated in Section 25; and
 2             (5)  any other necessary or desirable changes to the
 3        Act.
 4        (c)  The  Task Force shall issue an interim report to the
 5    Governor and General Assembly  no  later  than  December  31,
 6    1996.   The  final  report  shall  be  issued  no  later than
 7    September 30, 1997,  and  shall  include  specific  statutory
 8    changes recommended, if any.
 9        (d)  The  Task  Force shall be comprised of the following
10    members who shall serve without pay:
11             (1)  a  chairman  knowledgeable  about  health  care
12        issues, who shall be appointed by the Governor;
13             (2)  the Director of the Department of Public Health
14        or his or her designee;
15             (3)  the Director of the Department of State  Police
16        or his or her designee;
17             (3.5)  the  Director of the Department of Public Aid
18        or his or her designee;
19             (4)  2 representatives of health care providers  who
20        shall be appointed by the Governor;
21             (5)  2  representatives of health care employees who
22        shall be appointed by the Governor;
23             (6)  a representative of the general public who  has
24        an  interest in health care who shall be appointed by the
25        Governor; and
26             (7)  4  members  of  the   General   Assembly,   one
27        appointed  by  the Speaker of the House, one appointed by
28        the House Minority Leader, one appointed by the President
29        of the Senate, and one appointed by the  Senate  Minority
30        Leader.
31    (Source:  P.A.  89-197,  eff.  7-21-95;  89-507, eff. 7-1-97;
32    89-674, eff. 8-14-96; revised 9-12-96.)
33        Section 2-185.  The Liquor Control Act of 1934 is amended
HB1269 Enrolled            -215-               LRB9001000EGfg
 1    by changing Section 6-15 as follows:
 2        (235 ILCS 5/6-15) (from Ch. 43, par. 130)
 3        Sec.  6-15.  No  alcoholic  liquors  shall  be  sold   or
 4    delivered  in  any building belonging to or under the control
 5    of the State or any political subdivision thereof  except  as
 6    provided in this Act.  The corporate authorities of any city,
 7    village,   incorporated  town  or  township  may  provide  by
 8    ordinance, however, that alcoholic  liquor  may  be  sold  or
 9    delivered  in  any specifically designated building belonging
10    to or under the control of the municipality or  township,  or
11    in  any  building  located  on  land under the control of the
12    municipality; provided that such township complies  with  all
13    applicable  local  ordinances in any incorporated area of the
14    township. Alcoholic liquors may be delivered to and  sold  at
15    any   airport   belonging  to  or  under  the  control  of  a
16    municipality of more  than  25,000  inhabitants,  or  in  any
17    building  owned  by  a park district organized under the Park
18    District Code, subject to the approval of the governing board
19    of the district, or in any building or  on  any  golf  course
20    owned  by  a  forest  preserve  district  organized under the
21    Downstate  Forest  Preserve  District  Act,  subject  to  the
22    approval of the  governing  board  of  the  district,  or  in
23    Bicentennial  Park, or on the premises of the City of Mendota
24    Lake Park located adjacent to Route 51 in Mendota,  Illinois,
25    or  on  the premises of Camden Park in Milan, Illinois, or in
26    the community center owned by the City of Loves Park that  is
27    located at 1000 River Park Drive in Loves Park, Illinois, or,
28    in  connection  with  the  operation  of  an established food
29    serving facility during times  when  food  is  dispensed  for
30    consumption  on  the  premises, and at the following aquarium
31    and  museums  located  in  public  parks:  Art  Institute  of
32    Chicago, Chicago  Academy  of  Sciences,  Chicago  Historical
33    Society,  Field  Museum of Natural History, Museum of Science
HB1269 Enrolled            -216-               LRB9001000EGfg
 1    and Industry, DuSable Museum  of  African  American  History,
 2    John  G. Shedd Aquarium and Adler Planetarium, or at Lakeview
 3    Museum of Arts and Sciences in Peoria, or in connection  with
 4    the  operation  of  the  facilities of the Chicago Zoological
 5    Society or the Chicago Horticultural Society on land owned by
 6    the Forest Preserve  District  of  Cook  County,  or  in  any
 7    building  located  on land owned by the Chicago Park District
 8    if approved by the Park District  Commissioners,  or  on  any
 9    land  used for a golf course or for recreational purposes and
10    owned by the Illinois International Port District if approved
11    by the District's governing board, or at  any  airport,  golf
12    course,  faculty  center, or facility in which conference and
13    convention type activities take place belonging to  or  under
14    control  of  any State university or public community college
15    district, provided  that  with  respect  to  a  facility  for
16    conference  and  convention type activities alcoholic liquors
17    shall be limited to the use of the convention  or  conference
18    participants   or  participants  in  cultural,  political  or
19    educational activities held in such facilities, and  provided
20    further  that the faculty or staff of the State university or
21    a  public  community  college  district,  or  members  of  an
22    organization of students, alumni, faculty  or  staff  of  the
23    State  university  or a public community college district are
24    active participants in the conference or convention, or by  a
25    catering  establishment  which  has  rented facilities from a
26    board of trustees of a public community college district, or,
27    if approved by the District  board,  on  land  owned  by  the
28    Metropolitan  Sanitary District of Greater Chicago and leased
29    to others for a term of at least 20 years.  Nothing  in  this
30    Section precludes the sale or delivery of alcoholic liquor in
31    the  form  of  original packaged goods in premises located at
32    500 S. Racine in  Chicago  belonging  to  the  University  of
33    Illinois   and  used  primarily  as  a  grocery  store  by  a
34    commercial tenant during the term of a  lease  that  predates
HB1269 Enrolled            -217-               LRB9001000EGfg
 1    the   University's  acquisition  of  the  premises;  but  the
 2    University  shall  have  no  power  or  authority  to  renew,
 3    transfer, or extend the lease with terms allowing the sale of
 4    alcoholic liquor; and the sale of alcoholic liquor  shall  be
 5    subject  to  all  local  laws  and  regulations.    After the
 6    acquisition by Winnebago County of the  property  located  at
 7    404  Elm  Street  in  Rockford,  a commercial tenant who sold
 8    alcoholic liquor at retail on a portion of the property under
 9    a valid license at the time of the acquisition  may  continue
10    to  do  so for so long as the tenant and the County may agree
11    under existing or future leases, subject to  all  local  laws
12    and regulations regarding the sale of alcoholic liquor.  Each
13    facility   shall  provide  dram  shop  liability  in  maximum
14    insurance coverage limits so as to save harmless  the  State,
15    municipality, State university, airport, golf course, faculty
16    center,  facility  in  which  conference  and convention type
17    activities  take  place,  park  district,   Forest   Preserve
18    District,   public   community  college  district,  aquarium,
19    museum, or sanitary district from all financial loss,  damage
20    or harm. Alcoholic liquors may be sold at retail in buildings
21    of  golf  courses  owned by municipalities in connection with
22    the operation of an established food serving facility  during
23    times  when  food  is  dispensed  for  consumption  upon  the
24    premises.  Alcoholic  liquors may be delivered to and sold at
25    retail in any building owned by a  fire  protection  district
26    organized  under  the  Fire Protection District Act, provided
27    that such delivery and sale  is  approved  by  the  board  of
28    trustees  of  the  district,  and  provided further that such
29    delivery and sale is limited to fundraising events and  to  a
30    maximum of 6 events per year.
31        Alcoholic  liquor  may be delivered to and sold at retail
32    in the Dorchester Senior Business Center owned by the Village
33    of Dolton if the alcoholic liquor is sold or  dispensed  only
34    in  connection with organized functions for which the planned
HB1269 Enrolled            -218-               LRB9001000EGfg
 1    attendance is 20 or  more  persons,  and  if  the  person  or
 2    facility  selling  or  dispensing  the  alcoholic  liquor has
 3    provided dram shop liability insurance in maximum  limits  so
 4    as  to hold harmless the Village of Dolton and the State from
 5    all financial loss, damage and harm.
 6        Alcoholic liquors may be delivered to and sold at  retail
 7    in any building used as an Illinois State Armory provided:
 8             (i)  the  Adjutant  General's written consent to the
 9        issuance of a license to sell alcoholic  liquor  in  such
10        building is filed with the Commission;
11             (ii)  the alcoholic liquor is sold or dispensed only
12        in  connection  with  organized functions held on special
13        occasions;
14             (iii)  the organized function is one for  which  the
15        planned attendance is 25 or more persons; and
16             (iv)  the   facility   selling   or  dispensing  the
17        alcoholic  liquors  has  provided  dram  shop   liability
18        insurance  in  maximum  limits so as to save harmless the
19        facility and the State from all financial loss, damage or
20        harm.
21        Alcoholic liquors may be delivered to and sold at  retail
22    in the Chicago Civic Center, provided that:
23             (i)  the  written  consent  of  the  Public Building
24        Commission which administers the Chicago Civic Center  is
25        filed with the Commission;
26             (ii)  the alcoholic liquor is sold or dispensed only
27        in  connection  with  organized functions held on special
28        occasions;
29             (iii)  the organized function is one for  which  the
30        planned attendance is 25 or more persons;
31             (iv)  the   facility   selling   or  dispensing  the
32        alcoholic  liquors  has  provided  dram  shop   liability
33        insurance  in  maximum  limits so as to hold harmless the
34        Civic Center, the City of Chicago and the State from  all
HB1269 Enrolled            -219-               LRB9001000EGfg
 1        financial loss, damage or harm; and
 2             (v)  all  applicable  local  ordinances are complied
 3        with.
 4        Alcoholic  liquors  may  be  delivered  or  sold  in  any
 5    building belonging to or  under  the  control  of  any  city,
 6    village  or  incorporated  town  where  more  than 75% of the
 7    physical properties of the building is used for commercial or
 8    recreational purposes, and the building  is  located  upon  a
 9    pier extending into or over the waters of a navigable lake or
10    stream  or  on  the  shore  of  a  navigable  lake or stream.
11    Alcoholic liquor may be sold in buildings under  the  control
12    of  the  Department of Natural Resources when written consent
13    to the issuance of a license to sell alcoholic liquor in such
14    buildings is filed with the Commission by the  Department  of
15    Natural  Resources.  Notwithstanding  any  other provision of
16    this Act, alcoholic liquor sold by a United States Army Corps
17    of   Engineers   or   Department   of    Natural    Resources
18    concessionaire   who  was  operating  on  June  1,  1991  for
19    on-premises consumption only is not subject to the provisions
20    of Articles IV and IX. Beer and  wine  may  be  sold  on  the
21    premises  of  the  Joliet  Park District Stadium owned by the
22    Joliet Park District when written consent to the issuance  of
23    a  license  to  sell  beer and wine in such premises is filed
24    with  the  local  liquor  commissioner  by  the  Joliet  Park
25    District. Beer and wine may  be  sold  in  buildings  on  the
26    grounds  of State veterans' homes when written consent to the
27    issuance of a license to sell beer and wine in such buildings
28    is filed with the Commission by the Department  of  Veterans'
29    Affairs,  and  the facility shall provide dram shop liability
30    in maximum insurance  coverage  limits  so  as  to  save  the
31    facility  harmless  from  all financial loss, damage or harm.
32    Such liquors may be delivered to and  sold  at  any  property
33    owned  or  held  under  lease  by  a  Metropolitan  Pier  and
34    Exposition   Authority   or   Metropolitan   Exposition   and
HB1269 Enrolled            -220-               LRB9001000EGfg
 1    Auditorium Authority.
 2        Beer  and  wine may be sold and dispensed at professional
 3    sporting  events  and  at  professional  concerts  and  other
 4    entertainment events  conducted  on  premises  owned  by  the
 5    Forest  Preserve  District  of  Kane  County,  subject to the
 6    control of the District Commissioners  and  applicable  local
 7    law,  provided that dram shop liability insurance is provided
 8    at maximum  coverage  limits  so  as  to  hold  the  District
 9    harmless from all financial loss, damage and harm.
10        Nothing  in  this  Section  shall  preclude  the  sale or
11    delivery of beer and wine at a State or county  fair  or  the
12    sale  or  delivery  of  beer  or  wine  at a city fair in any
13    otherwise lawful manner.
14        Alcoholic liquors may be sold at retail in  buildings  in
15    State  parks  under  the control of the Department of Natural
16    Resources, provided:
17             a.  the State park has overnight lodging  facilities
18        with  some restaurant facilities or, not having overnight
19        lodging facilities, has restaurant facilities which serve
20        complete luncheon and dinner or supper meals,
21             b.  consent to the issuance of  a  license  to  sell
22        alcoholic  liquors  in  the buildings has been filed with
23        the commission by the Department  of  Natural  Resources,
24        and
25             c.  the alcoholic liquors are sold by the State park
26        lodge  or restaurant concessionaire only during the hours
27        from  11  o'clock  a.m.  until   12   o'clock   midnight.
28        Notwithstanding   any   other   provision  of  this  Act,
29        alcoholic liquor sold by the  State  park  or  restaurant
30        concessionaire  is  not  subject  to  the  provisions  of
31        Articles IV and IX.
32        Alcoholic  liquors  may be sold at retail in buildings on
33    properties under the control  of  the  Historic  Preservation
34    Agency provided:
HB1269 Enrolled            -221-               LRB9001000EGfg
 1             a.  the  property  has  overnight lodging facilities
 2        with some restaurant facilities or, not having  overnight
 3        lodging facilities, has restaurant facilities which serve
 4        complete luncheon and dinner or supper meals,
 5             b.  consent  to  the  issuance  of a license to sell
 6        alcoholic liquors in the buildings has  been  filed  with
 7        the commission by the Historic Preservation Agency, and
 8             c.  the  alcoholic  liquors are sold by the lodge or
 9        restaurant concessionaire only during the hours  from  11
10        o'clock a.m. until 12 o'clock midnight.
11        The  sale  of  alcoholic liquors pursuant to this Section
12    does  not  authorize  the  establishment  and  operation   of
13    facilities  commonly  called taverns, saloons, bars, cocktail
14    lounges,  and  the  like  except  as  a  part  of  lodge  and
15    restaurant facilities in State parks or golf courses owned by
16    Forest Preserve Districts with  a  population  of  less  than
17    3,000,000 or municipalities or park districts.
18        Alcoholic   liquors   may   be  sold  at  retail  in  the
19    Springfield Administration  Building  of  the  Department  of
20    Transportation  and the Illinois State Armory in Springfield;
21    provided,  that  the  controlling  government  authority  may
22    consent to such sales only if
23             a.  the   request   is   from    a    not-for-profit
24        organization;
25             b.  such sales would not impede normal operations of
26        the departments involved;
27             c.  the  not-for-profit  organization  provides dram
28        shop liability in maximum insurance coverage  limits  and
29        agrees  to  defend, save harmless and indemnify the State
30        of Illinois from all financial loss, damage or harm;
31             d.  no such sale shall be made during normal working
32        hours of the State of Illinois; and
33             e.  the consent is in writing.
34        Alcoholic liquors may be sold at retail in  buildings  in
HB1269 Enrolled            -222-               LRB9001000EGfg
 1    recreational  areas  of river conservancy districts under the
 2    control of, or leased from, the river conservancy  districts.
 3    Such  sales  are  subject  to reasonable local regulations as
 4    provided in Article IV;  however,  no  such  regulations  may
 5    prohibit  or  substantially  impair  the  sale  of  alcoholic
 6    liquors on Sundays or Holidays.
 7        Alcoholic  liquors  may  be  provided  in  long term care
 8    facilities owned or operated by a county under Division  5-21
 9    or  5-22  of the Counties Code, when approved by the facility
10    operator and not in conflict  with  the  regulations  of  the
11    Illinois  Department  of  Public  Health, to residents of the
12    facility who have had  their  consumption  of  the  alcoholic
13    liquors  provided approved in writing by a physician licensed
14    to practice medicine in all its branches.
15        Alcoholic liquors may be delivered to  and  dispensed  in
16    State  housing  assigned  to  employees  of the Department of
17    Corrections. No person shall furnish or allow to be furnished
18    any alcoholic liquors to any prisoner confined in  any  jail,
19    reformatory,  prison  or  house  of  correction except upon a
20    physician's prescription for medicinal purposes.
21        Alcoholic liquors may be sold at retail or  dispensed  at
22    the Willard Ice Building in Springfield, at the State Library
23    in  Springfield,  and  at Illinois State Museum facilities by
24    (1) an agency of the State, whether legislative, judicial  or
25    executive,  provided  that  such agency first obtains written
26    permission to sell or dispense  alcoholic  liquors  from  the
27    controlling  government authority, or by (2) a not-for-profit
28    organization, provided that such organization:
29             a.  Obtains written  consent  from  the  controlling
30        government authority;
31             b.  Sells  or  dispenses  the alcoholic liquors in a
32        manner that does not impair normal  operations  of  State
33        offices located in the building;
34             c.  Sells  or  dispenses  alcoholic  liquors only in
HB1269 Enrolled            -223-               LRB9001000EGfg
 1        connection with an official activity in the building;
 2             d.  Provides, or its catering service provides, dram
 3        shop liability insurance in maximum coverage  limits  and
 4        in  which the carrier agrees to defend, save harmless and
 5        indemnify the State of Illinois from all financial  loss,
 6        damage  or  harm arising out of the selling or dispensing
 7        of alcoholic liquors.
 8        Nothing  in  this  Act  shall  prevent  a  not-for-profit
 9    organization or  agency  of  the  State  from  employing  the
10    services  of  a  catering  establishment  for  the selling or
11    dispensing of alcoholic liquors at authorized functions.
12        The controlling government authority for the Willard  Ice
13    Building   in  Springfield  shall  be  the  Director  of  the
14    Department of Revenue.  The controlling government  authority
15    for Illinois State Museum facilities shall be the Director of
16    the   Illinois  State  Museum.   The  controlling  government
17    authority for the State Library in Springfield shall  be  the
18    Secretary of State.
19        Alcoholic  liquors may be delivered to and sold at retail
20    or dispensed at any facility, property or building under  the
21    jurisdiction  of  the  Historic Preservation Agency where the
22    delivery, sale or dispensing is  by  (1)  an  agency  of  the
23    State,  whether  legislative, judicial or executive, provided
24    that such agency first obtains written permission to sell  or
25    dispense  alcoholic  liquors  from  a  controlling government
26    authority, or by (2) a not-for-profit  organization  provided
27    that such organization:
28             a.  Obtains  written  consent  from  the controlling
29        government authority;
30             b.  Sells or dispenses the alcoholic  liquors  in  a
31        manner  that  does  not  impair  normal workings of State
32        offices or operations located at the  facility,  property
33        or building;
34             c.  Sells  or  dispenses  alcoholic  liquors only in
HB1269 Enrolled            -224-               LRB9001000EGfg
 1        connection   with   an   official   activity    of    the
 2        not-for-profit  organization in the facility, property or
 3        building;
 4             d.  Provides, or its catering service provides, dram
 5        shop liability insurance in maximum coverage  limits  and
 6        in  which the carrier agrees to defend, save harmless and
 7        indemnify the State of Illinois from all financial  loss,
 8        damage  or  harm arising out of the selling or dispensing
 9        of alcoholic liquors.
10        The controlling government  authority  for  the  Historic
11    Preservation  Agency  shall  be  the Director of the Historic
12    Preservation Agency.
13        Alcoholic liquors may be sold at retail or  dispensed  at
14    the James R. Thompson Center in Chicago and 222 South College
15    Street in Springfield, Illinois by (1) a commercial tenant or
16    subtenant  conducting  business on the premises under a lease
17    made pursuant to Section 67.24 of  the  Civil  Administrative
18    Code  of Illinois, provided that such tenant or subtenant who
19    sells  or  dispenses  alcoholic  liquors  shall  procure  and
20    maintain dram shop liability insurance  in  maximum  coverage
21    limits  and  in which the carrier agrees to defend, indemnify
22    and save harmless the State of Illinois  from  all  financial
23    loss, damage or harm arising out of the sale or dispensing of
24    alcoholic  liquors, or by (2) an agency of the State, whether
25    legislative, judicial or executive, provided that such agency
26    first  obtains  written  permission  to  sell   or   dispense
27    alcoholic  liquors  from  the  Director of Central Management
28    Services, or by (3) a not-for-profit  organization,  provided
29    that such organization:
30             a.  Obtains  written  consent from the Department of
31        Central Management Services;
32             b.  Sells or dispenses the alcoholic  liquors  in  a
33        manner  that  does  not impair normal operations of State
34        offices located in the building;
HB1269 Enrolled            -225-               LRB9001000EGfg
 1             c.  Sells or dispenses  alcoholic  liquors  only  in
 2        connection with an official activity in the building;
 3             d.  Provides, or its catering service provides, dram
 4        shop  liability  insurance in maximum coverage limits and
 5        in which the carrier agrees to defend, save harmless  and
 6        indemnify  the State of Illinois from all financial loss,
 7        damage or harm arising out of the selling  or  dispensing
 8        of alcoholic liquors.
 9        Nothing  in  this  Act  shall  prevent  a  not-for-profit
10    organization  or  agency  of  the  State  from  employing the
11    services of a  catering  establishment  for  the  selling  or
12    dispensing  of  alcoholic  liquors at functions authorized by
13    the Director of Central Management Services.
14        Alcoholic  liquors  may  be  sold  or  delivered  at  any
15    facility owned by the Illinois  Sports  Facilities  Authority
16    provided  that  dram  shop  liability insurance has been made
17    available in a form, with such coverage and in  such  amounts
18    as the Authority reasonably determines is necessary.
19        Alcoholic  liquors  may be sold at retail or dispensed at
20    the Rockford State Office Building by (1) an  agency  of  the
21    State,  whether  legislative, judicial or executive, provided
22    that such agency first obtains written permission to sell  or
23    dispense  alcoholic  liquors  from  the Department of Central
24    Management Services, or by (2) a not-for-profit organization,
25    provided that such organization:
26             a.  Obtains written consent from the  Department  of
27        Central Management Services;
28             b.  Sells  or  dispenses  the alcoholic liquors in a
29        manner that does not impair normal  operations  of  State
30        offices located in the building;
31             c.  Sells  or  dispenses  alcoholic  liquors only in
32        connection with an official activity in the building;
33             d.  Provides, or its catering service provides, dram
34        shop liability insurance in maximum coverage  limits  and
HB1269 Enrolled            -226-               LRB9001000EGfg
 1        in  which the carrier agrees to defend, save harmless and
 2        indemnify the State of Illinois from all financial  loss,
 3        damage  or  harm arising out of the selling or dispensing
 4        of alcoholic liquors.
 5        Nothing  in  this  Act  shall  prevent  a  not-for-profit
 6    organization or  agency  of  the  State  from  employing  the
 7    services  of  a  catering  establishment  for  the selling or
 8    dispensing of alcoholic liquors at  functions  authorized  by
 9    the Department of Central Management Services.
10        Alcoholic  liquors may be sold or delivered in a building
11    that is owned by McLean County, situated on land owned by the
12    county in the City of Bloomington, and  used  by  the  McLean
13    County Historical Society if the sale or delivery is approved
14    by  an  ordinance  adopted  by  the  county  board,  and  the
15    municipality  in  which  the  building  is  located  may  not
16    prohibit  that  sale  or  delivery, notwithstanding any other
17    provision of this Section.  The regulation of  the  sale  and
18    delivery  of  alcoholic liquor in a building that is owned by
19    McLean County, situated on land owned by the county, and used
20    by the McLean County Historical Society as provided  in  this
21    paragraph is an exclusive power and function of the State and
22    is  a  denial  and  limitation  under Article VII, Section 6,
23    subsection (h) of the Illinois Constitution of the power of a
24    home rule municipality to regulate that sale and delivery.
25        Alcoholic  liquors  may  be  sold  or  delivered  in  any
26    building situated on  land  held  in  trust  for  any  school
27    district  organized  under  Article 34 of the School Code, if
28    the building is not used for school purposes and if the  sale
29    or delivery is approved by the board of education.
30        Alcoholic  liquors  may be sold or delivered in buildings
31    owned by the Community Building Complex  Committee  of  Boone
32    County,  Illinois  if  the  person  or  facility  selling  or
33    dispensing  the  alcoholic  liquor  has  provided  dram  shop
34    liability  insurance  with  coverage  and in amounts that the
HB1269 Enrolled            -227-               LRB9001000EGfg
 1    Committee reasonably determines are necessary.
 2        Alcoholic  liquors  may  be  sold  or  delivered  in  the
 3    building located at 1200 Centerville  Avenue  in  Belleville,
 4    Illinois  and  occupied by either the Belleville Area Special
 5    Education District or the Belleville  Area  Special  Services
 6    Cooperative.
 7    (Source:   P.A.  88-652,  eff.  9-16-94; 89-34, eff. 6-23-95;
 8    89-262, eff. 8-10-95;  89-376,  eff.  8-18-95;  89-445,  eff.
 9    2-7-96;  89-502,  eff. 6-28-96; 89-544, eff. 7-19-96; 89-626,
10    eff. 8-9-96; revised 8-19-96.)
11        Section 2-190.  The Illinois Public Aid Code  is  amended
12    by changing Sections 5-5, 5-16.3, 11-9, and 14-8 as follows:
13        (305 ILCS 5/5-5) (from Ch. 23, par. 5-5)
14        Sec.  5-5.  Medical services. The Illinois Department, by
15    rule, shall determine the quantity and  quality  of  and  the
16    rate  of  reimbursement  for the medical assistance for which
17    payment will be authorized, and the medical  services  to  be
18    provided, which may include all or part of the following: (1)
19    inpatient   hospital   services;   (2)   outpatient  hospital
20    services;  (3)  other  laboratory  and  X-ray  services;  (4)
21    skilled  nursing  home  services;  (5)  physicians'  services
22    whether furnished  in  the  office,  the  patient's  home,  a
23    hospital,  a  skilled nursing home, or elsewhere; (6) medical
24    care, or  any  other  type  of  remedial  care  furnished  by
25    licensed  practitioners;  (7)  home health care services; (8)
26    private duty  nursing  service;  (9)  clinic  services;  (10)
27    dental  services; (11) physical therapy and related services;
28    (12) prescribed drugs, dentures, and prosthetic devices;  and
29    eyeglasses  prescribed by a physician skilled in the diseases
30    of the eye, or by an optometrist, whichever  the  person  may
31    select;  (13)  other  diagnostic,  screening, preventive, and
32    rehabilitative services; (14) transportation and  such  other
HB1269 Enrolled            -228-               LRB9001000EGfg
 1    expenses  as  may  be  necessary;  (15)  medical treatment of
 2    sexual assault survivors, as defined in  Section  1a  of  the
 3    Sexual   Assault   Survivors  Emergency  Treatment  Act,  for
 4    injuries  sustained  as  a  result  of  the  sexual  assault,
 5    including  examinations  and  laboratory  tests  to  discover
 6    evidence which may be used in  criminal  proceedings  arising
 7    from  the sexual assault; (16) the diagnosis and treatment of
 8    sickle cell anemia; and (17) any other medical care, and  any
 9    other type of remedial care recognized under the laws of this
10    State,  but  not including abortions, or induced miscarriages
11    or premature births, unless, in the opinion of  a  physician,
12    such  procedures  are  necessary  for the preservation of the
13    life of the  woman  seeking  such  treatment,  or  except  an
14    induced  premature  birth  intended  to produce a live viable
15    child and such procedure is necessary for the health  of  the
16    mother or her unborn child. The Illinois Department, by rule,
17    shall   prohibit   any   physician   from  providing  medical
18    assistance to anyone eligible therefor under this Code  where
19    such  physician  has  been  found  guilty  of  performing  an
20    abortion procedure in a wilful and wanton manner upon a woman
21    who  was not pregnant at the time such abortion procedure was
22    performed. The term "any other type of remedial  care"  shall
23    include nursing care and nursing home service for persons who
24    rely on treatment by spiritual means alone through prayer for
25    healing.
26        The  Illinois  Department of Public Aid shall provide the
27    following services to persons eligible for  assistance  under
28    this  Article who are participating in education, training or
29    employment programs  operated  by  the  Department  of  Human
30    Services as successor to the Department of Public Aid:
31             (1)  dental services, which shall include but not be
32        limited to prosthodontics; and
33             (2)  eyeglasses prescribed by a physician skilled in
34        the  diseases of the eye, or by an optometrist, whichever
HB1269 Enrolled            -229-               LRB9001000EGfg
 1        the person may select.
 2        The Illinois Department, by  rule,  may  distinguish  and
 3    classify   the  medical  services  to  be  provided  only  in
 4    accordance with the classes of persons designated in  Section
 5    5-2.
 6        The Illinois Department shall authorize the provision of,
 7    and  shall  authorize  payment  for,  screening  by  low-dose
 8    mammography  for  the  presence  of  occult breast cancer for
 9    women 35 years of age or older who are eligible  for  medical
10    assistance  under  this  Article,  as  follows:   a  baseline
11    mammogram  for women 35 to 39 years of age; a mammogram every
12    1 to 2 years, even if no symptoms are present, for  women  40
13    to  49  years  of  age;  and an annual mammogram for women 50
14    years of age  or  older.   All  screenings  shall  include  a
15    physical  breast  exam,  instruction  on self-examination and
16    information regarding the frequency of  self-examination  and
17    its  value  as a preventative tool.  As used in this Section,
18    "low-dose mammography" means the  x-ray  examination  of  the
19    breast    using    equipment   dedicated   specifically   for
20    mammography, including the x-ray  tube,  filter,  compression
21    device,  image  receptor,  and  cassettes,  with  an  average
22    radiation  exposure delivery of less than one rad mid-breast,
23    with 2 views for each breast.
24        Any medical or health  care  provider  shall  immediately
25    recommend,  to  any  pregnant  woman  who  is  being provided
26    prenatal services and  is  suspected  of  drug  abuse  or  is
27    addicted  as  defined  in the Alcoholism and Other Drug Abuse
28    and Dependency Act,  referral  to  a  local  substance  abuse
29    treatment  provider  licensed  by  the  Department  of  Human
30    Services  or  to a licensed hospital which provides substance
31    abuse treatment services.  The Department of Public Aid shall
32    assure coverage for the cost of treatment of the  drug  abuse
33    or  addiction  for pregnant recipients in accordance with the
34    Illinois Medicaid Program in conjunction with the  Department
HB1269 Enrolled            -230-               LRB9001000EGfg
 1    of Human Services.
 2        All  medical  providers  providing  medical assistance to
 3    pregnant women under this Code shall receive information from
 4    the Department on the availability of services under the Drug
 5    Free  Families  with  a  Future  or  any  comparable  program
 6    providing  case  management  services  for  addicted   women,
 7    including  information  on  appropriate  referrals  for other
 8    social services that may  be  needed  by  addicted  women  in
 9    addition to treatment for addiction.
10        The   Illinois   Department,   in  cooperation  with  the
11    Departments of Human Services (as successor to the Department
12    of Alcoholism and Substance Abuse) and Public Health, through
13    a  public  awareness  campaign,   may   provide   information
14    concerning  treatment  for  alcoholism  and  drug  abuse  and
15    addiction, prenatal health care, and other pertinent programs
16    directed at reducing the number of drug-affected infants born
17    to recipients of medical assistance.
18        Neither  the  Illinois  Department  of Public Aid nor the
19    Department of Human Services  shall  sanction  the  recipient
20    solely on the basis of her substance abuse.
21        The  Illinois Department shall establish such regulations
22    governing  the  dispensing  of  health  services  under  this
23    Article as it shall deem appropriate.  In  formulating  these
24    regulations  the  Illinois  Department shall consult with and
25    give substantial weight to the recommendations offered by the
26    Citizens  Assembly/Council  on  Public  Aid.  The  Department
27    should  seek  the  advice  of  formal  professional  advisory
28    committees  appointed  by  the  Director  of   the   Illinois
29    Department  for  the  purpose  of providing regular advice on
30    policy and administrative matters, information  dissemination
31    and  educational  activities  for  medical  and  health  care
32    providers,  and  consistency  in  procedures  to the Illinois
33    Department.
34        The Illinois Department may  develop  and  contract  with
HB1269 Enrolled            -231-               LRB9001000EGfg
 1    Partnerships of medical providers to arrange medical services
 2    for   persons  eligible  under  Section  5-2  of  this  Code.
 3    Implementation  of  this  Section  may  be  by  demonstration
 4    projects in certain geographic areas.  The Partnership  shall
 5    be represented by a sponsor organization.  The Department, by
 6    rule,   shall   develop   qualifications   for   sponsors  of
 7    Partnerships.  Nothing in this Section shall be construed  to
 8    require   that   the   sponsor   organization  be  a  medical
 9    organization.
10        The sponsor must negotiate formal written contracts  with
11    medical  providers  for  physician  services,  inpatient  and
12    outpatient hospital care, home health services, treatment for
13    alcoholism and substance abuse, and other services determined
14    necessary  by the Illinois Department by rule for delivery by
15    Partnerships.  Physician services must include  prenatal  and
16    obstetrical  care.   The  Illinois Department shall reimburse
17    medical  services  delivered  by  Partnership  providers   to
18    clients  in  target  areas  according  to  provisions of this
19    Article and the Illinois Health Finance  Reform  Act,  except
20    that:
21             (1)  Physicians  participating  in a Partnership and
22        providing certain services, which shall be determined  by
23        the  Illinois  Department, to persons in areas covered by
24        the Partnership may receive an additional  surcharge  for
25        such services.
26             (2)  The   Department  may  elect  to  consider  and
27        negotiate   financial   incentives   to   encourage   the
28        development of Partnerships and the efficient delivery of
29        medical care.
30             (3)  Persons  receiving  medical  services   through
31        Partnerships  may  receive  medical  and  case management
32        services above the  level  usually  offered  through  the
33        medical assistance program.
34        Medical  providers  shall  be  required  to  meet certain
HB1269 Enrolled            -232-               LRB9001000EGfg
 1    qualifications to participate in Partnerships to  ensure  the
 2    delivery   of   high   quality   medical   services.    These
 3    qualifications  shall  be  determined by rule of the Illinois
 4    Department  and  may  be  higher  than   qualifications   for
 5    participation in the medical assistance program.  Partnership
 6    sponsors  may  prescribe reasonable additional qualifications
 7    for participation by medical providers, only with  the  prior
 8    written approval of the Illinois Department.
 9        Nothing  in  this  Section shall limit the free choice of
10    practitioners, hospitals,  and  other  providers  of  medical
11    services by clients.
12        The  Department  shall apply for a waiver from the United
13    States Health Care Financing Administration to allow for  the
14    implementation of Partnerships under this Section.
15        The   Illinois   Department  shall  require  health  care
16    providers to maintain records that document the medical  care
17    and  services  provided  to  recipients of Medical Assistance
18    under this Article.  The Illinois  Department  shall  require
19    health  care  providers to make available, when authorized by
20    the patient, in writing, the  medical  records  in  a  timely
21    fashion  to  other  health care providers who are treating or
22    serving persons eligible for Medical  Assistance  under  this
23    Article.    All  dispensers  of  medical  services  shall  be
24    required to maintain and  retain  business  and  professional
25    records  sufficient  to  fully  and  accurately  document the
26    nature,  scope,  details  and  receipt  of  the  health  care
27    provided to persons eligible  for  medical  assistance  under
28    this  Code, in accordance with regulations promulgated by the
29    Illinois Department. The rules and regulations shall  require
30    that  proof  of  the receipt of prescription drugs, dentures,
31    prosthetic devices and eyeglasses by eligible  persons  under
32    this Section accompany each claim for reimbursement submitted
33    by the dispenser of such medical services. No such claims for
34    reimbursement  shall  be approved for payment by the Illinois
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 1    Department without such proof of receipt, unless the Illinois
 2    Department shall have put into effect and shall be  operating
 3    a  system  of post-payment audit and review which shall, on a
 4    sampling basis, be deemed adequate by the Illinois Department
 5    to assure that such drugs, dentures, prosthetic  devices  and
 6    eyeglasses for which payment is being made are actually being
 7    received  by  eligible  recipients.  Within 90 days after the
 8    effective date of this amendatory Act of 1984,  the  Illinois
 9    Department  shall  establish  a  current  list of acquisition
10    costs  for  all  prosthetic  devices  and  any  other   items
11    recognized  as  medical  equipment  and supplies reimbursable
12    under this Article and shall update such list on a  quarterly
13    basis,  except that the acquisition costs of all prescription
14    drugs shall be updated no less frequently than every 30  days
15    as required by Section 5-5.12.
16        The  rules  and  regulations  of  the Illinois Department
17    shall require that a written statement including the required
18    opinion  of  a  physician  shall  accompany  any  claim   for
19    reimbursement  for  abortions,  or  induced  miscarriages  or
20    premature   births.    This  statement  shall  indicate  what
21    procedures were used in providing such medical services.
22        The Illinois Department shall require that all dispensers
23    of medical services, other than an individual practitioner or
24    group  of  practitioners,  desiring  to  participate  in  the
25    Medical Assistance program established under this Article  to
26    disclose all financial, beneficial, ownership, equity, surety
27    or  other  interests  in  any  and  all  firms, corporations,
28    partnerships,  associations,  business   enterprises,   joint
29    ventures,  agencies,  institutions  or  other  legal entities
30    providing any form of health  care  services  in  this  State
31    under this Article.
32        The  Illinois  Department may require that all dispensers
33    of medical services desiring to participate  in  the  medical
34    assistance  program  established under this Article disclose,
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 1    under such terms and conditions as  the  Illinois  Department
 2    may  by  rule  establish,  all  inquiries  from  clients  and
 3    attorneys  regarding  medical  bills  paid  by  the  Illinois
 4    Department,   which   inquiries   could   indicate  potential
 5    existence of claims or liens for the Illinois Department.
 6        The  Illinois  Department   shall   establish   policies,
 7    procedures,   standards   and   criteria   by  rule  for  the
 8    acquisition,  repair  and   replacement   of   orthotic   and
 9    prosthetic devices and durable medical equipment.  Such rules
10    shall provide, but not be limited to, the following services:
11    (1)  immediate  repair  or  replacement  of  such  devices by
12    recipients without medical  authorization;  and  (2)  rental,
13    lease,   purchase   or   lease-purchase  of  durable  medical
14    equipment   in   a   cost-effective   manner,   taking   into
15    consideration the recipient's medical prognosis,  the  extent
16    of  the recipient's needs, and the requirements and costs for
17    maintaining  such  equipment.   Such  rules  shall  enable  a
18    recipient to  temporarily  acquire  and  use  alternative  or
19    substitute   devices   or   equipment   pending   repairs  or
20    replacements of any device or equipment previously authorized
21    for such recipient by the Department. Rules under clause  (2)
22    above  shall  not  provide  for purchase or lease-purchase of
23    durable medical equipment or supplies used for the purpose of
24    oxygen delivery and respiratory care.
25        The Department shall execute,  relative  to  the  nursing
26    home  prescreening  project,  written inter-agency agreements
27    with the Department of Human Services and the  Department  on
28    Aging,  to  effect  the  following: (i) intake procedures and
29    common  eligibility  criteria  for  those  persons  who   are
30    receiving    non-institutional   services;   and   (ii)   the
31    establishment and development of  non-institutional  services
32    in  areas of the State where they are not currently available
33    or are undeveloped.
34        The Illinois Department shall  develop  and  operate,  in
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 1    cooperation  with other State Departments and agencies and in
 2    compliance with  applicable  federal  laws  and  regulations,
 3    appropriate  and  effective systems of health care evaluation
 4    and programs for monitoring of  utilization  of  health  care
 5    services  and  facilities, as it affects persons eligible for
 6    medical assistance under this Code. The  Illinois  Department
 7    shall  report  regularly the results of the operation of such
 8    systems and programs  to  the  Citizens  Assembly/Council  on
 9    Public  Aid  to  enable the Committee to ensure, from time to
10    time, that these programs are effective and meaningful.
11        The Illinois Department  shall  report  annually  to  the
12    General Assembly, no later than the second Friday in April of
13    1979 and each year thereafter, in regard to:
14             (a)  actual  statistics and trends in utilization of
15        medical services by public aid recipients;
16             (b)  actual statistics and trends in  the  provision
17        of the various medical services by medical vendors;
18             (c)  current rate structures and proposed changes in
19        those  rate  structures  for the various medical vendors;
20        and
21             (d)  efforts at utilization review  and  control  by
22        the Illinois Department.
23        The  period  covered  by each report shall be the 3 years
24    ending on the June 30 prior to the report.  The report  shall
25    include   suggested  legislation  for  consideration  by  the
26    General Assembly.  The filing of one copy of the report  with
27    the  Speaker,  one copy with the Minority Leader and one copy
28    with the Clerk of the House of Representatives,