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|[ Introduced ]||[ Engrossed ]||[ House Amendment 001 ]|
|[ House Amendment 003 ]|
92_HB5734enr HB5734 Enrolled LRB9214200LDtm 1 AN ACT in relation to education. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 3. The Freedom of Information Act is amended by 5 changing Section 2 as follows: 6 (5 ILCS 140/2) (from Ch. 116, par. 202) 7 Sec. 2. Definitions. As used in this Act: 8 (a) "Public body" means any legislative, executive, 9 administrative, or advisory bodies of the State, state 10 universities and colleges, counties, townships, cities, 11 villages, incorporated towns, school districts and all other 12 municipal corporations, boards, bureaus, committees, or 13 commissions of this State,
andany subsidiary bodies of any 14 of the foregoing including but not limited to committees and 15 subcommittees which are supported in whole or in part by tax 16 revenue, or which expend tax revenue, and a School Finance 17 Authority created under Article 1E of the School Code. 18 "Public body" does not include a child death review team or 19 the Illinois Child Death Review Teams Executive Council 20 established under the Child Death Review Team Act. 21 (b) "Person" means any individual, corporation, 22 partnership, firm, organization or association, acting 23 individually or as a group. 24 (c) "Public records" means all records, reports, forms, 25 writings, letters, memoranda, books, papers, maps, 26 photographs, microfilms, cards, tapes, recordings, electronic 27 data processing records, recorded information and all other 28 documentary materials, regardless of physical form or 29 characteristics, having been prepared, or having been or 30 being used, received, possessed or under the control of any 31 public body. "Public records" includes, but is expressly not HB5734 Enrolled -2- LRB9214200LDtm 1 limited to: (i) administrative manuals, procedural rules, 2 and instructions to staff, unless exempted by Section 7(p) of 3 this Act; (ii) final opinions and orders made in the 4 adjudication of cases, except an educational institution's 5 adjudication of student or employee grievance or disciplinary 6 cases; (iii) substantive rules; (iv) statements and 7 interpretations of policy which have been adopted by a public 8 body; (v) final planning policies, recommendations, and 9 decisions; (vi) factual reports, inspection reports, and 10 studies whether prepared by or for the public body; (vii) all 11 information in any account, voucher, or contract dealing with 12 the receipt or expenditure of public or other funds of public 13 bodies; (viii) the names, salaries, titles, and dates of 14 employment of all employees and officers of public bodies; 15 (ix) materials containing opinions concerning the rights of 16 the state, the public, a subdivision of state or a local 17 government, or of any private persons; (x) the name of every 18 official and the final records of voting in all proceedings 19 of public bodies; (xi) applications for any contract, permit, 20 grant, or agreement except as exempted from disclosure by 21 subsection (g) of Section 7 of this Act; (xii) each report, 22 document, study, or publication prepared by independent 23 consultants or other independent contractors for the public 24 body; (xiii) all other information required by law to be made 25 available for public inspection or copying; (xiv) information 26 relating to any grant or contract made by or between a public 27 body and another public body or private organization; (xv) 28 waiver documents filed with the State Superintendent of 29 Education or the president of the University of Illinois 30 under Section 30-12.5 of the School Code, concerning nominees 31 for General Assembly scholarships under Sections 30-9, 30-10, 32 and 30-11 of the School Code; (xvi) complaints, results of 33 complaints, and Department of Children and Family Services 34 staff findings of licensing violations at day care HB5734 Enrolled -3- LRB9214200LDtm 1 facilities, provided that personal and identifying 2 information is not released; and (xvii) records, reports, 3 forms, writings, letters, memoranda, books, papers, and other 4 documentary information, regardless of physical form or 5 characteristics, having been prepared, or having been or 6 being used, received, possessed, or under the control of the 7 Illinois Sports Facilities Authority dealing with the receipt 8 or expenditure of public funds or other funds of the 9 Authority in connection with the reconstruction, renovation, 10 remodeling, extension, or improvement of all or substantially 11 all of an existing "facility" as that term is defined in the 12 Illinois Sports Facilities Authority Act. 13 (d) "Copying" means the reproduction of any public 14 record by means of any photographic, electronic, mechanical 15 or other process, device or means. 16 (e) "Head of the public body" means the president, 17 mayor, chairman, presiding officer, director, superintendent, 18 manager, supervisor or individual otherwise holding primary 19 executive and administrative authority for the public body, 20 or such person's duly authorized designee. 21 (f) "News media" means a newspaper or other periodical 22 issued at regular intervals whether in print or electronic 23 format, a news service whether in print or electronic format, 24 a radio station, a television station, a television network, 25 a community antenna television service, or a person or 26 corporation engaged in making news reels or other motion 27 picture news for public showing. 28 (Source: P.A. 91-935, eff. 6-1-01; 92-335, eff. 8-10-01; 29 92-468, eff. 8-22-01; revised 10-10-01.) 30 Section 5. The Property Tax Code is amended by changing 31 Section 18-185 and adding Sections 18-190.5 and 18-241 as 32 follows: HB5734 Enrolled -4- LRB9214200LDtm 1 (35 ILCS 200/18-185) 2 Sec. 18-185. Short title; definitions. This Division 5 3 may be cited as the Property Tax Extension Limitation Law. 4 As used in this Division 5: 5 "Consumer Price Index" means the Consumer Price Index for 6 All Urban Consumers for all items published by the United 7 States Department of Labor. 8 "Extension limitation" means (a) the lesser of 5% or the 9 percentage increase in the Consumer Price Index during the 10 12-month calendar year preceding the levy year or (b) the 11 rate of increase approved by voters under Section 18-205. 12 "Affected county" means a county of 3,000,000 or more 13 inhabitants or a county contiguous to a county of 3,000,000 14 or more inhabitants. 15 "Taxing district" has the same meaning provided in 16 Section 1-150, except as otherwise provided in this Section. 17 For the 1991 through 1994 levy years only, "taxing district" 18 includes only each non-home rule taxing district having the 19 majority of its 1990 equalized assessed value within any 20 county or counties contiguous to a county with 3,000,000 or 21 more inhabitants. Beginning with the 1995 levy year, "taxing 22 district" includes only each non-home rule taxing district 23 subject to this Law before the 1995 levy year and each 24 non-home rule taxing district not subject to this Law before 25 the 1995 levy year having the majority of its 1994 equalized 26 assessed value in an affected county or counties. Beginning 27 with the levy year in which this Law becomes applicable to a 28 taxing district as provided in Section 18-213, "taxing 29 district" also includes those taxing districts made subject 30 to this Law as provided in Section 18-213. 31 "Aggregate extension" for taxing districts to which this 32 Law applied before the 1995 levy year means the annual 33 corporate extension for the taxing district and those special 34 purpose extensions that are made annually for the taxing HB5734 Enrolled -5- LRB9214200LDtm 1 district, excluding special purpose extensions: (a) made for 2 the taxing district to pay interest or principal on general 3 obligation bonds that were approved by referendum; (b) made 4 for any taxing district to pay interest or principal on 5 general obligation bonds issued before October 1, 1991; (c) 6 made for any taxing district to pay interest or principal on 7 bonds issued to refund or continue to refund those bonds 8 issued before October 1, 1991; (d) made for any taxing 9 district to pay interest or principal on bonds issued to 10 refund or continue to refund bonds issued after October 1, 11 1991 that were approved by referendum; (e) made for any 12 taxing district to pay interest or principal on revenue bonds 13 issued before October 1, 1991 for payment of which a property 14 tax levy or the full faith and credit of the unit of local 15 government is pledged; however, a tax for the payment of 16 interest or principal on those bonds shall be made only after 17 the governing body of the unit of local government finds that 18 all other sources for payment are insufficient to make those 19 payments; (f) made for payments under a building commission 20 lease when the lease payments are for the retirement of bonds 21 issued by the commission before October 1, 1991, to pay for 22 the building project; (g) made for payments due under 23 installment contracts entered into before October 1, 1991; 24 (h) made for payments of principal and interest on bonds 25 issued under the Metropolitan Water Reclamation District Act 26 to finance construction projects initiated before October 1, 27 1991; (i) made for payments of principal and interest on 28 limited bonds, as defined in Section 3 of the Local 29 Government Debt Reform Act, in an amount not to exceed the 30 debt service extension base less the amount in items (b), 31 (c), (e), and (h) of this definition for non-referendum 32 obligations, except obligations initially issued pursuant to 33 referendum; (j) made for payments of principal and interest 34 on bonds issued under Section 15 of the Local Government Debt HB5734 Enrolled -6- LRB9214200LDtm 1 Reform Act; and (k) made by a school district that 2 participates in the Special Education District of Lake 3 County, created by special education joint agreement under 4 Section 10-22.31 of the School Code, for payment of the 5 school district's share of the amounts required to be 6 contributed by the Special Education District of Lake County 7 to the Illinois Municipal Retirement Fund under Article 7 of 8 the Illinois Pension Code; the amount of any extension under 9 this item (k) shall be certified by the school district to 10 the county clerk. 11 "Aggregate extension" for the taxing districts to which 12 this Law did not apply before the 1995 levy year (except 13 taxing districts subject to this Law in accordance with 14 Section 18-213) means the annual corporate extension for the 15 taxing district and those special purpose extensions that are 16 made annually for the taxing district, excluding special 17 purpose extensions: (a) made for the taxing district to pay 18 interest or principal on general obligation bonds that were 19 approved by referendum; (b) made for any taxing district to 20 pay interest or principal on general obligation bonds issued 21 before March 1, 1995; (c) made for any taxing district to pay 22 interest or principal on bonds issued to refund or continue 23 to refund those bonds issued before March 1, 1995; (d) made 24 for any taxing district to pay interest or principal on bonds 25 issued to refund or continue to refund bonds issued after 26 March 1, 1995 that were approved by referendum; (e) made for 27 any taxing district to pay interest or principal on revenue 28 bonds issued before March 1, 1995 for payment of which a 29 property tax levy or the full faith and credit of the unit of 30 local government is pledged; however, a tax for the payment 31 of interest or principal on those bonds shall be made only 32 after the governing body of the unit of local government 33 finds that all other sources for payment are insufficient to 34 make those payments; (f) made for payments under a building HB5734 Enrolled -7- LRB9214200LDtm 1 commission lease when the lease payments are for the 2 retirement of bonds issued by the commission before March 1, 3 1995 to pay for the building project; (g) made for payments 4 due under installment contracts entered into before March 1, 5 1995; (h) made for payments of principal and interest on 6 bonds issued under the Metropolitan Water Reclamation 7 District Act to finance construction projects initiated 8 before October 1, 1991; (i) made for payments of principal 9 and interest on limited bonds, as defined in Section 3 of the 10 Local Government Debt Reform Act, in an amount not to exceed 11 the debt service extension base less the amount in items (b), 12 (c), and (e) of this definition for non-referendum 13 obligations, except obligations initially issued pursuant to 14 referendum and bonds described in subsection (h) of this 15 definition; (j) made for payments of principal and interest 16 on bonds issued under Section 15 of the Local Government Debt 17 Reform Act; (k) made for payments of principal and interest 18 on bonds authorized by Public Act 88-503 and issued under 19 Section 20a of the Chicago Park District Act for aquarium or 20 museum projects; and(l) made for payments of principal and 21 interest on bonds authorized by Public Act 87-1191 and issued 22 under Section 42 of the Cook County Forest Preserve District 23 Act for zoological park projects; and (m) made pursuant to 24 Section 34-53.5 of the School Code, whether levied annually 25 or not. 26 "Aggregate extension" for all taxing districts to which 27 this Law applies in accordance with Section 18-213, except 28 for those taxing districts subject to paragraph (2) of 29 subsection (e) of Section 18-213, means the annual corporate 30 extension for the taxing district and those special purpose 31 extensions that are made annually for the taxing district, 32 excluding special purpose extensions: (a) made for the taxing 33 district to pay interest or principal on general obligation 34 bonds that were approved by referendum; (b) made for any HB5734 Enrolled -8- LRB9214200LDtm 1 taxing district to pay interest or principal on general 2 obligation bonds issued before the date on which the 3 referendum making this Law applicable to the taxing district 4 is held; (c) made for any taxing district to pay interest or 5 principal on bonds issued to refund or continue to refund 6 those bonds issued before the date on which the referendum 7 making this Law applicable to the taxing district is held; 8 (d) made for any taxing district to pay interest or principal 9 on bonds issued to refund or continue to refund bonds issued 10 after the date on which the referendum making this Law 11 applicable to the taxing district is held if the bonds were 12 approved by referendum after the date on which the referendum 13 making this Law applicable to the taxing district is held; 14 (e) made for any taxing district to pay interest or principal 15 on revenue bonds issued before the date on which the 16 referendum making this Law applicable to the taxing district 17 is held for payment of which a property tax levy or the full 18 faith and credit of the unit of local government is pledged; 19 however, a tax for the payment of interest or principal on 20 those bonds shall be made only after the governing body of 21 the unit of local government finds that all other sources for 22 payment are insufficient to make those payments; (f) made for 23 payments under a building commission lease when the lease 24 payments are for the retirement of bonds issued by the 25 commission before the date on which the referendum making 26 this Law applicable to the taxing district is held to pay for 27 the building project; (g) made for payments due under 28 installment contracts entered into before the date on which 29 the referendum making this Law applicable to the taxing 30 district is held; (h) made for payments of principal and 31 interest on limited bonds, as defined in Section 3 of the 32 Local Government Debt Reform Act, in an amount not to exceed 33 the debt service extension base less the amount in items (b), 34 (c), and (e) of this definition for non-referendum HB5734 Enrolled -9- LRB9214200LDtm 1 obligations, except obligations initially issued pursuant to 2 referendum; (i) made for payments of principal and interest 3 on bonds issued under Section 15 of the Local Government Debt 4 Reform Act; and (j) made for a qualified airport authority to 5 pay interest or principal on general obligation bonds issued 6 for the purpose of paying obligations due under, or financing 7 airport facilities required to be acquired, constructed, 8 installed or equipped pursuant to, contracts entered into 9 before March 1, 1996 (but not including any amendments to 10 such a contract taking effect on or after that date). 11 "Aggregate extension" for all taxing districts to which 12 this Law applies in accordance with paragraph (2) of 13 subsection (e) of Section 18-213 means the annual corporate 14 extension for the taxing district and those special purpose 15 extensions that are made annually for the taxing district, 16 excluding special purpose extensions: (a) made for the taxing 17 district to pay interest or principal on general obligation 18 bonds that were approved by referendum; (b) made for any 19 taxing district to pay interest or principal on general 20 obligation bonds issued before the effective date of this 21 amendatory Act of 1997; (c) made for any taxing district to 22 pay interest or principal on bonds issued to refund or 23 continue to refund those bonds issued before the effective 24 date of this amendatory Act of 1997; (d) made for any taxing 25 district to pay interest or principal on bonds issued to 26 refund or continue to refund bonds issued after the effective 27 date of this amendatory Act of 1997 if the bonds were 28 approved by referendum after the effective date of this 29 amendatory Act of 1997; (e) made for any taxing district to 30 pay interest or principal on revenue bonds issued before the 31 effective date of this amendatory Act of 1997 for payment of 32 which a property tax levy or the full faith and credit of the 33 unit of local government is pledged; however, a tax for the 34 payment of interest or principal on those bonds shall be made HB5734 Enrolled -10- LRB9214200LDtm 1 only after the governing body of the unit of local government 2 finds that all other sources for payment are insufficient to 3 make those payments; (f) made for payments under a building 4 commission lease when the lease payments are for the 5 retirement of bonds issued by the commission before the 6 effective date of this amendatory Act of 1997 to pay for the 7 building project; (g) made for payments due under installment 8 contracts entered into before the effective date of this 9 amendatory Act of 1997; (h) made for payments of principal 10 and interest on limited bonds, as defined in Section 3 of the 11 Local Government Debt Reform Act, in an amount not to exceed 12 the debt service extension base less the amount in items (b), 13 (c), and (e) of this definition for non-referendum 14 obligations, except obligations initially issued pursuant to 15 referendum; (i) made for payments of principal and interest 16 on bonds issued under Section 15 of the Local Government Debt 17 Reform Act; and (j) made for a qualified airport authority to 18 pay interest or principal on general obligation bonds issued 19 for the purpose of paying obligations due under, or financing 20 airport facilities required to be acquired, constructed, 21 installed or equipped pursuant to, contracts entered into 22 before March 1, 1996 (but not including any amendments to 23 such a contract taking effect on or after that date). 24 "Debt service extension base" means an amount equal to 25 that portion of the extension for a taxing district for the 26 1994 levy year, or for those taxing districts subject to this 27 Law in accordance with Section 18-213, except for those 28 subject to paragraph (2) of subsection (e) of Section 18-213, 29 for the levy year in which the referendum making this Law 30 applicable to the taxing district is held, or for those 31 taxing districts subject to this Law in accordance with 32 paragraph (2) of subsection (e) of Section 18-213 for the 33 1996 levy year, constituting an extension for payment of 34 principal and interest on bonds issued by the taxing district HB5734 Enrolled -11- LRB9214200LDtm 1 without referendum, but not including (i) bonds authorized by 2 Public Act 88-503 and issued under Section 20a of the Chicago 3 Park District Act for aquarium and museum projects; (ii) 4 bonds issued under Section 15 of the Local Government Debt 5 Reform Act; or (iii) refunding obligations issued to refund 6 or to continue to refund obligations initially issued 7 pursuant to referendum. The debt service extension base may 8 be established or increased as provided under Section 18-212. 9 "Special purpose extensions" include, but are not limited 10 to, extensions for levies made on an annual basis for 11 unemployment and workers' compensation, self-insurance, 12 contributions to pension plans, and extensions made pursuant 13 to Section 6-601 of the Illinois Highway Code for a road 14 district's permanent road fund whether levied annually or 15 not. The extension for a special service area is not 16 included in the aggregate extension. 17 "Aggregate extension base" means the taxing district's 18 last preceding aggregate extension as adjusted under Sections 19 18-215 through 18-230. 20 "Levy year" has the same meaning as "year" under Section 21 1-155. 22 "New property" means (i) the assessed value, after final 23 board of review or board of appeals action, of new 24 improvements or additions to existing improvements on any 25 parcel of real property that increase the assessed value of 26 that real property during the levy year multiplied by the 27 equalization factor issued by the Department under Section 28 17-30 and (ii) the assessed value, after final board of 29 review or board of appeals action, of real property not 30 exempt from real estate taxation, which real property was 31 exempt from real estate taxation for any portion of the 32 immediately preceding levy year, multiplied by the 33 equalization factor issued by the Department under Section 34 17-30. In addition, the county clerk in a county containing HB5734 Enrolled -12- LRB9214200LDtm 1 a population of 3,000,000 or more shall include in the 1997 2 recovered tax increment value for any school district, any 3 recovered tax increment value that was applicable to the 1995 4 tax year calculations. 5 "Qualified airport authority" means an airport authority 6 organized under the Airport Authorities Act and located in a 7 county bordering on the State of Wisconsin and having a 8 population in excess of 200,000 and not greater than 500,000. 9 "Recovered tax increment value" means, except as 10 otherwise provided in this paragraph, the amount of the 11 current year's equalized assessed value, in the first year 12 after a municipality terminates the designation of an area as 13 a redevelopment project area previously established under the 14 Tax Increment Allocation Development Act in the Illinois 15 Municipal Code, previously established under the Industrial 16 Jobs Recovery Law in the Illinois Municipal Code, or 17 previously established under the Economic Development Area 18 Tax Increment Allocation Act, of each taxable lot, block, 19 tract, or parcel of real property in the redevelopment 20 project area over and above the initial equalized assessed 21 value of each property in the redevelopment project area. 22 For the taxes which are extended for the 1997 levy year, the 23 recovered tax increment value for a non-home rule taxing 24 district that first became subject to this Law for the 1995 25 levy year because a majority of its 1994 equalized assessed 26 value was in an affected county or counties shall be 27 increased if a municipality terminated the designation of an 28 area in 1993 as a redevelopment project area previously 29 established under the Tax Increment Allocation Development 30 Act in the Illinois Municipal Code, previously established 31 under the Industrial Jobs Recovery Law in the Illinois 32 Municipal Code, or previously established under the Economic 33 Development Area Tax Increment Allocation Act, by an amount 34 equal to the 1994 equalized assessed value of each taxable HB5734 Enrolled -13- LRB9214200LDtm 1 lot, block, tract, or parcel of real property in the 2 redevelopment project area over and above the initial 3 equalized assessed value of each property in the 4 redevelopment project area. In the first year after a 5 municipality removes a taxable lot, block, tract, or parcel 6 of real property from a redevelopment project area 7 established under the Tax Increment Allocation Development 8 Act in the Illinois Municipal Code, the Industrial Jobs 9 Recovery Law in the Illinois Municipal Code, or the Economic 10 Development Area Tax Increment Allocation Act, "recovered tax 11 increment value" means the amount of the current year's 12 equalized assessed value of each taxable lot, block, tract, 13 or parcel of real property removed from the redevelopment 14 project area over and above the initial equalized assessed 15 value of that real property before removal from the 16 redevelopment project area. 17 Except as otherwise provided in this Section, "limiting 18 rate" means a fraction the numerator of which is the last 19 preceding aggregate extension base times an amount equal to 20 one plus the extension limitation defined in this Section and 21 the denominator of which is the current year's equalized 22 assessed value of all real property in the territory under 23 the jurisdiction of the taxing district during the prior levy 24 year. For those taxing districts that reduced their 25 aggregate extension for the last preceding levy year, the 26 highest aggregate extension in any of the last 3 preceding 27 levy years shall be used for the purpose of computing the 28 limiting rate. The denominator shall not include new 29 property. The denominator shall not include the recovered 30 tax increment value. 31 (Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97; 32 90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff. 33 7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.) HB5734 Enrolled -14- LRB9214200LDtm 1 (35 ILCS 200/18-190.5 new) 2 Sec. 18-190.5. School districts. The requirements of 3 Section 18-190 of this Code for a direct referendum on the 4 imposition of a new or increased tax rate do not apply to tax 5 levies that are not included in the aggregate extension for 6 those taxing districts to which this Law did not apply before 7 the 1995 levy year (except taxing districts subject to this 8 Law in accordance with Section 18-213 of this Code) pursuant 9 to clause (m) of Section 18-185 of this Code. 10 (35 ILCS 200/18-241 new) 11 Sec. 18-241. School Finance Authority. 12 (a) A School Finance Authority established under Article 13 1E of the School Code shall not be a taxing district for 14 purposes of this Law. 15 (b) This Law shall not apply to the extension of taxes 16 for a school district for the levy year in which a School 17 Finance Authority for the district is created pursuant to 18 Article 1E of the School Code. 19 Section 7. The Local Government Debt Limitation Act is 20 amended by adding Section 1.23 as follows: 21 (50 ILCS 405/1.23 new) 22 Sec. 1.23. Indebtedness of Downstate School Finance 23 Authority. The limitation prescribed in Section 1 of this Act 24 does not apply to any indebtedness of a School Finance 25 Authority created pursuant to Article 1E of the School Code. 26 Section 10. The School Code is amended by adding Article 27 1E and Section 34-53.5 as follows: 28 (105 ILCS 5/Art. 1E heading new) 29 ARTICLE 1E. DOWNSTATE SCHOOL FINANCE AUTHORITY HB5734 Enrolled -15- LRB9214200LDtm 1 (105 ILCS 5/1E-1 new) 2 Sec. 1E-1. Short title. This Article may be cited as the 3 Downstate School Finance Authority Law. 4 (105 ILCS 5/1E-5 new) 5 Sec. 1E-5. Findings; purpose; intent. 6 (a) The General Assembly finds all of the following: 7 (1) A fundamental goal of the people of this State, 8 as expressed in Section 1 of Article X of the Illinois 9 Constitution, is the educational development of all 10 persons to the limits of their capacities. When a board 11 of education faces financial difficulties, continued 12 operation of the public school system is threatened. 13 (2) A sound financial structure is essential to the 14 continued operation of any school system. It is vital to 15 commercial, educational, and cultural interests that 16 public schools remain in operation. To achieve that goal, 17 public school systems must have effective access to the 18 private market to borrow short and long term funds. 19 (3) To promote the financial integrity of 20 districts, as defined in this Article, it is necessary to 21 provide for the creation of school finance authorities 22 with the powers necessary to promote sound financial 23 management and to ensure the continued operation of the 24 public schools. 25 (b) It is the purpose of this Article to provide a 26 secure financial basis for the continued operation of public 27 schools. The intention of the General Assembly, in creating 28 this Article, is to establish procedures, provide powers, and 29 impose restrictions to ensure the financial and educational 30 integrity of the public schools, while leaving principal 31 responsibility for the educational policies of public schools 32 to the boards of education within the State, consistent with 33 the requirements for satisfying the public policy and purpose HB5734 Enrolled -16- LRB9214200LDtm 1 set forth in this Article. 2 (105 ILCS 5/1E-10 new) 3 Sec. 1E-10. Definitions. As used in this Article: 4 "Authority" means a School Finance Authority created 5 under this Article. 6 "Bonds" means bonds authorized to be issued by the 7 Authority under Section 1E-65 of this Code. 8 "Budget" means the annual budget of the district required 9 under Section 17-1 of this Code, as in effect from time to 10 time. 11 "Chairperson" means the Chairperson of the Authority. 12 "District" means any school district having a population 13 of not more than 500,000 that prior to the effective date of 14 this amendatory Act of the 92nd General Assembly has had a 15 Financial Oversight Panel established for the district under 16 Section 1B-4 of this Code following the district's 17 petitioning of the State Board of Education for the creation 18 of the Financial Oversight Panel and for which the Financial 19 Oversight Panel has been in existence for at least one year. 20 "Financial plan" means the financial plan of the district 21 to be developed pursuant to this Article, as in effect from 22 time to time. 23 "Fiscal year" means the fiscal year of the district. 24 "State Board" means the State Board of Education. 25 "State Superintendent" means the State Superintendent of 26 Education. 27 "Obligations" means bonds and notes of the Authority. 28 (105 ILCS 5/1E-15 new) 29 Sec. 1E-15. Establishment of Authority; duties of 30 district. 31 (a) A Financial Oversight Panel created under Article 1B 32 of this Code for a district may petition the State Board for HB5734 Enrolled -17- LRB9214200LDtm 1 the establishment of a School Finance Authority for the 2 district. The petition shall cite the reasons why the 3 creation of a School Finance Authority for the district is 4 necessary. The State Board may grant the petition upon 5 determining that the approval of the petition is in the best 6 educational and financial interests of the district. 7 (b) Upon approval of the petition by the State Board all 8 of the following shall occur: 9 (1) There is established a body both corporate and 10 politic to be known as the "(Name of School District) 11 School Finance Authority", which in this name shall 12 exercise all authority vested in an Authority by this 13 Article. 14 (2) The Financial Oversight Panel is abolished, and 15 all of its rights, property, assets, contracts, and 16 liabilities shall pass to and be vested in the Authority. 17 (3) The duties and obligations of the district 18 under Article 1B of this Code shall be transferred and 19 become duties and obligations owed by the district to the 20 School Finance Authority. 21 (c) In the event of a conflict between the provisions of 22 this Article and the provisions of Article 1B of this Code, 23 the provisions of this Article control. 24 (105 ILCS 5/1E-20 new) 25 Sec. 1E-20. Members of Authority; meetings. 26 (a) When a petition for a School Finance Authority is 27 allowed by the State Board under Section 1E-15 of this Code, 28 the State Superintendent shall within 10 days thereafter 29 appoint 5 members to serve on a School Finance Authority for 30 the district. Of the initial members, 2 shall be appointed to 31 serve a term of 2 years and 3 shall be appointed to serve a 32 term of 3 years. Thereafter, each member shall serve for a 33 term of 3 years and until his or her successor has been HB5734 Enrolled -18- LRB9214200LDtm 1 appointed. The State Superintendent shall designate one of 2 the members of the Authority to serve as its Chairperson. In 3 the event of vacancy or resignation, the State Superintendent 4 shall, within 10 days after receiving notice, appoint a 5 successor to serve out that member's term. The State 6 Superintendent may remove a member for incompetence, 7 malfeasance, neglect of duty, or other just cause. 8 Members of the Authority shall be selected primarily on 9 the basis of their experience and education in financial 10 management, with consideration given to persons knowledgeable 11 in education finance. Two members of the Authority shall be 12 residents of the school district that the Authority serves. A 13 member of the Authority may not be a member of the district's 14 school board or an employee of the district nor may a member 15 have a direct financial interest in the district. 16 Authority members shall serve without compensation, but 17 may be reimbursed by the State Board for travel and other 18 necessary expenses incurred in the performance of their 19 official duties. Unless paid from bonds issued under Section 20 1E-65 of this Code, the amount reimbursed members for their 21 expenses shall be charged to the school district as part of 22 any emergency financial assistance and incorporated as a part 23 of the terms and conditions for repayment of the assistance 24 or shall be deducted from the district's general State aid as 25 provided in Section 1B-8 of this Code. 26 The Authority may elect such officers as it deems 27 appropriate. 28 (b) The first meeting of the Authority shall be held at 29 the call of the Chairperson. The Authority shall prescribe 30 the times and places for its meetings and the manner in which 31 regular and special meetings may be called and shall comply 32 with the Open Meetings Act. 33 Three members of the Authority shall constitute a quorum. 34 When a vote is taken upon any measure before the Authority, a HB5734 Enrolled -19- LRB9214200LDtm 1 quorum being present, a majority of the votes of the members 2 voting on the measure shall determine the outcome. 3 (105 ILCS 5/1E-25 new) 4 Sec. 1E-25. General powers. The purposes of the Authority 5 shall be to exercise financial control over the district and 6 to furnish financial assistance so that the district can 7 provide public education within the district's jurisdiction 8 while permitting the district to meet its obligations to its 9 creditors and the holders of its debt. Except as expressly 10 limited by this Article, the Authority shall have all powers 11 granted to a voluntary or involuntary Financial Oversight 12 Panel and to a Financial Administrator under Article 1B of 13 this Code and all other powers necessary to meet its 14 responsibilities and to carry out its purposes and the 15 purposes of this Article, including without limitation all of 16 the following powers, provided that the Authority shall have 17 no power to violate any statutory provision, to impair any 18 contract or obligation of the district, or to terminate any 19 employee without following the statutory procedures for such 20 terminations set forth in this Code: 21 (1) To sue and to be sued. 22 (2) To make and execute contracts, leases, 23 subleases and all other instruments or agreements 24 necessary or convenient for the exercise of the powers 25 and functions granted by this Article. 26 (3) To purchase real or personal property necessary 27 or convenient for its purposes; to execute and deliver 28 deeds for real property held in its own name; and to 29 sell, lease, or otherwise dispose of such of its property 30 as, in the judgment of the Authority, is no longer 31 necessary for its purposes. 32 (4) To appoint officers, agents, and employees of 33 the Authority, including a chief executive officer, a HB5734 Enrolled -20- LRB9214200LDtm 1 chief fiscal officer, and a chief educational officer; to 2 define their duties and qualifications; and to fix their 3 compensation and employee benefits. 4 (5) To transfer to the district such sums of money 5 as are not required for other purposes. 6 (6) To borrow money and to issue obligations 7 pursuant to this Article; to fund, refund, or advance 8 refund the same; to provide for the rights of the holders 9 of its obligations; and to repay any advances. 10 (7) Subject to the provisions of any contract with 11 or for the benefit of the holders of its obligations, to 12 purchase or redeem its obligations. 13 (8) To procure all necessary goods and services for 14 the Authority in compliance with the purchasing laws and 15 requirements applicable to the district. 16 (9) To do any and all things necessary or 17 convenient to carry out its purposes and exercise the 18 powers given to it by this Article. 19 (105 ILCS 5/1E-30 new) 20 Sec. 1E-30. Chief executive officer. The Authority may 21 appoint a chief executive officer who, under the direction of 22 the Authority, shall supervise the Authority's staff, 23 including the chief educational officer and the chief fiscal 24 officer, and shall have ultimate responsibility for 25 implementing the policies, procedures, directives, and 26 decisions of the Authority. 27 (105 ILCS 5/1E-35 new) 28 Sec. 1E-35. Chief educational officer. Upon expiration of 29 the contract of the school district's superintendent who is 30 serving at the time the Authority is established, the 31 Authority shall, following consultation with the district, 32 employ a chief educational officer for the district. The HB5734 Enrolled -21- LRB9214200LDtm 1 chief educational officer shall report to the Authority or 2 the chief executive officer appointed by the Authority. 3 The chief educational officer shall have all of the 4 powers and duties of a school district superintendent under 5 this Code and such other duties as may be assigned by the 6 Authority, in accordance with this Code. The district shall 7 not thereafter employ a superintendent during the period that 8 a chief educational officer is serving in the district. The 9 chief educational officer shall hold a certificate with a 10 superintendent endorsement issued under Article 21 of this 11 Code. 12 (105 ILCS 5/1E-40 new) 13 Sec. 1E-40. Chief fiscal officer. The Authority may 14 appoint a chief fiscal officer who, under the direction of 15 the Authority, shall have all of the powers and duties of the 16 district's chief school business official and any other 17 duties regarding budgeting, accounting, and other financial 18 matters that are assigned by the Authority, in accordance 19 with this Code. The district may not employ a chief school 20 business official during the period that the chief fiscal 21 officer is serving in the district. The chief fiscal officer 22 may but is not required to hold a certificate with a chief 23 school business official endorsement issued under Article 21 24 of this Code. 25 (105 ILCS 5/1E-45 new) 26 Sec. 1E-45. Collective bargaining agreements. The 27 Authority shall have the power to negotiate collective 28 bargaining agreements with the district's employees in lieu 29 of and on behalf of the district. Upon concluding bargaining, 30 the district shall execute the agreements negotiated by the 31 Authority, and the district shall be bound by and shall 32 administer the agreements in all respects as if the HB5734 Enrolled -22- LRB9214200LDtm 1 agreements had been negotiated by the district itself. 2 (105 ILCS 5/1E-50 new) 3 Sec. 1E-50. Deposits and investments. 4 (a) The Authority shall have the power to establish 5 checking and whatever other banking accounts it may deem 6 appropriate for conducting its affairs. 7 (b) Subject to the provisions of any contract with or 8 for the benefit of the holders of its obligations, the 9 Authority may invest any funds not required for immediate use 10 or disbursement, as provided in the Public Funds Investment 11 Act. 12 (105 ILCS 5/1E-55 new) 13 Sec. 1E-55. Cash accounts and bank accounts. 14 (a) The Authority shall require the district or any 15 officer of the district, including the district's treasurer, 16 to establish and maintain separate cash accounts and separate 17 bank accounts in accordance with such rules, standards, and 18 procedures as the Authority may prescribe. 19 (b) The Authority shall have the power to assume 20 exclusive administration of the cash accounts and bank 21 accounts of the district, to establish and maintain whatever 22 new cash accounts and bank accounts it may deem appropriate, 23 and to withdraw funds from these accounts for the lawful 24 expenditures of the district. 25 (105 ILCS 5/1E-60 new) 26 Sec. 1E-60. Financial, management, and budgetary 27 structure. Upon direction of the Authority, the district 28 shall reorganize the financial accounts, management, and 29 budgetary systems of the district in whatever manner the 30 Authority deems appropriate to achieve greater financial 31 responsibility and to reduce financial inefficiency. HB5734 Enrolled -23- LRB9214200LDtm 1 (105 ILCS 5/1E-65 new) 2 Sec. 1E-65. Power to issue bonds. 3 (a) The Authority may incur indebtedness by the issuance 4 of negotiable full faith and credit general obligation bonds 5 of the Authority in an outstanding amount not to exceed at 6 any time, including existing indebtedness, 13.8% of the 7 district's most recent equalized assessed valuation, 8 excluding Bonds of the Authority that have been refunded, for 9 (i) the purpose of providing the district with moneys for 10 ordinary and necessary expenditures and other operational 11 needs of the district; (ii) payment or refunding of 12 outstanding debt obligations or tax anticipation warrants of 13 the district, the proceeds of which were used to provide 14 financing for the district; (iii) payment of fees for 15 arrangements as provided in subsection (b) of Section 1E-70 16 of this Code; (iv) payment of interest on Bonds; (v) 17 establishment of reserves to secure Bonds; (vi) the payment 18 of costs of issuance of Bonds; (vii) payment of principal of 19 or interest or redemption premium on any Bonds or notes of 20 the Authority; and (viii) all other expenditures of the 21 Authority incidental to and necessary or convenient for 22 carrying out its corporate purposes and powers. 23 (b) The Authority may from time to time (i) issue Bonds 24 to refund any outstanding Bonds or notes of the Authority, 25 whether the Bonds or notes to be refunded have or have not 26 matured or become redeemable, and (ii) issue Bonds partly to 27 refund Bonds or notes then outstanding and partly for any 28 other purpose set forth in this Section. 29 (c) Bonds issued in accordance with subsection (a) of 30 this Section are not subject to any other statutory 31 limitation as to debt, including without limitation that 32 established by the Local Government Debt Limitation Act, and 33 may be issued without referendum. HB5734 Enrolled -24- LRB9214200LDtm 1 (105 ILCS 5/1E-70 new) 2 Sec. 1E-70. Terms of bonds. 3 (a) Whenever the Authority desires or is required to 4 issue Bonds as provided in this Article, it shall adopt a 5 resolution designating the amount of the Bonds to be issued, 6 the purposes for which the proceeds of the Bonds are to be 7 used, and the manner in which the proceeds shall be held 8 pending the application thereof. The Bonds shall be issued in 9 the corporate name of the Authority and shall bear such date 10 or dates and shall mature at such time or times, not 11 exceeding 20 years from their date, as the resolution may 12 provide. The Bonds may be issued as serial bonds payable in 13 installments, as term bonds with sinking fund installments, 14 or as a combination of these as the Authority may determine 15 in the resolution. The Bonds shall be in such denominations 16 as the Authority may determine. The Bonds shall be in such 17 form, carry such registration privileges, be executed in such 18 manner, be payable at such place or places, and be subject to 19 such terms of redemption at such redemption prices, including 20 premium, as the resolution may provide. The Bonds shall be 21 sold by the Authority at public or private sale, as 22 determined by the Authority. 23 (b) In connection with the issuance of its Bonds, the 24 Authority may enter into arrangements to provide additional 25 security and liquidity for the Bonds. These may include 26 without limitation municipal bond insurance, letters of 27 credit, lines of credit by which the Authority may borrow 28 funds to pay or redeem its Bonds, and purchase or remarketing 29 arrangements for ensuring the ability of owners of the 30 Authority's Bonds to sell their Bonds or to have their Bonds 31 redeemed. The Authority may enter into contracts and may 32 agree to pay fees to persons providing the arrangements, 33 including from Bond proceeds, but only under circumstances in 34 which the total interest paid or to be paid on the Bonds, HB5734 Enrolled -25- LRB9214200LDtm 1 together with the fees for the arrangements (being treated as 2 if interest), would not, taken together, cause the Bonds to 3 bear interest, calculated to their absolute maturity, at a 4 rate in excess of the maximum rate allowed by law. 5 The resolution of the Authority authorizing the issuance 6 of its Bonds may provide that interest rates may vary from 7 time to time depending upon criteria established by the 8 Authority, which may include without limitation a variation 9 in interest rates as may be necessary to cause the Bonds to 10 be remarketable from time to time at a price equal to their 11 principal amount, and may provide for appointment of a 12 national banking association, bank, trust company, investment 13 banker, or other financial institution to serve as a 14 remarketing agent in that connection. The resolution of the 15 Authority authorizing the issuance of its Bonds may provide 16 that alternative interest rates or provisions shall apply 17 during such times as the Bonds are held by a person providing 18 a letter of credit or other credit enhancement arrangement 19 for those Bonds. 20 (105 ILCS 5/1E-75 new) 21 Sec. 1E-75. Tax levy. 22 (a) Before or at the time of issuing any Bonds, the 23 Authority shall provide by resolution for the levy and 24 collection of a direct annual tax upon all the taxable 25 property located within the district without limit as to rate 26 or amount sufficient to pay and discharge the principal 27 thereof at maturity or on sinking fund installment dates and 28 to pay the interest thereon as it falls due. The taxes as 29 levied shall also include additional amounts to the extent 30 that the collections in the prior years were insufficient to 31 pay and discharge the principal thereof at maturity, sinking 32 fund installments, if any, and interest thereon as it fell 33 due, and the amount so collected shall be placed in the debt HB5734 Enrolled -26- LRB9214200LDtm 1 service reserve fund. The tax shall be in addition to and 2 exclusive of the maximum of all taxes that the Authority or 3 the district is authorized by law to levy for any and all 4 school purposes. The resolution shall be in force upon its 5 adoption. 6 (b) The levy shall be for the sole benefit of the 7 holders of the Bonds, and the holders of the Bonds shall have 8 a security interest in and lien upon all rights, claims, and 9 interests of the Authority arising pursuant to the levy and 10 all present and future proceeds of the levy until the 11 principal of and sinking fund installments and interest on 12 the Bonds are paid in full. All proceeds from the levy shall 13 be deposited by each county collector directly in the debt 14 service fund established pursuant to Section 1E-80 of this 15 Code, shall be applied solely for the payment of principal of 16 and sinking fund installments and interest on the Bonds, and 17 shall not be used for any other purpose. 18 (c) Upon the filing in the office of the county clerk of 19 each county where the school district is located of a duly 20 certified copy of the resolution, it shall be the duty of 21 each county clerk to extend the tax provided for in the 22 resolution, including an amount determined by the Authority 23 to cover loss and cost of collection and also deferred 24 collections and abatements in the amount of the taxes as 25 extended on the collectors' books. The tax shall be separate 26 and apart from all other taxes of the Authority or the 27 district and shall be separately identified by the 28 collectors. 29 (105 ILCS 5/1E-80 new) 30 Sec. 1E-80. Debt service fund. The Authority shall 31 establish a debt service fund for the Bonds to be maintained 32 by a paying agent, escrow agent, depository, or corporate 33 trustee, which may be any trust company or bank having the HB5734 Enrolled -27- LRB9214200LDtm 1 power of a trust company within this State, separate and 2 segregated from all other funds and accounts of the Authority 3 and the district. All moneys on deposit in the debt service 4 fund shall be held in trust in the debt service fund for the 5 benefit of the holders of the Bonds, shall be applied solely 6 for the payment of the principal of and sinking fund 7 installment, redemption premium, if any, and interest on the 8 Bonds, and shall not be used for any other purpose. The 9 holders of the Bonds shall have a security interest in and 10 lien upon all such moneys. 11 (105 ILCS 5/1E-85 new) 12 Sec. 1E-85. Debt service reserve fund. 13 (a) The Authority may create and establish a debt 14 service reserve fund to be maintained by a paying agent, 15 escrow agent, depository, or corporate trustee, which may be 16 any trust company or bank having the power of a trust company 17 within the State, separate and segregated from all other 18 funds and accounts of the Authority. The Authority may pay 19 the following into the debt service reserve fund: 20 (1) any proceeds from the sale of Bonds to the 21 extent provided in the resolution authorizing the 22 issuance of the Bonds; and 23 (2) any other moneys that may be available to the 24 Authority for the purpose of the fund. 25 (b) The amount to be accumulated in the debt service 26 reserve fund shall be determined by the Authority but shall 27 not exceed the maximum amount of interest, principal, and 28 sinking fund installments due in any succeeding calendar 29 year. 30 (c) All moneys on deposit in the debt service reserve 31 fund shall be held in trust for the benefit of the holders of 32 the Bonds, shall be applied solely for the payment of 33 principal of and sinking fund installments and interest on HB5734 Enrolled -28- LRB9214200LDtm 1 the Bonds to the extent not paid from the debt service fund, 2 and shall not be used for any other purpose. 3 (d) Any moneys in the debt service reserve fund in 4 excess of the amount determined by the Authority pursuant to 5 a resolution authorizing the issuance of Bonds may be 6 withdrawn by the Authority and used for any of its lawful 7 purposes. 8 (e) In computing the amount of the debt service reserve 9 fund, investments shall be valued as the Authority provides 10 in the resolution authorizing the issuance of the Bonds. 11 (105 ILCS 5/1E-90 new) 12 Sec. 1E-90. Bond anticipation notes. 13 (a) After the issuance of Bonds has been authorized, the 14 Authority shall have power to issue from time to time, 15 pursuant to a resolution or resolutions of the Authority, 16 negotiable bond anticipation notes of the Authority in 17 anticipation of the issuance of Bonds. 18 (b) Bond anticipation notes shall mature not later than 19 2 years after the date of issuance, may be made redeemable 20 prior to their maturity, and may be sold in such manner, in 21 such denominations, and at such price or prices and shall 22 bear interest at such rate or rates not to exceed the maximum 23 annual rate authorized by law, as a resolution authorizing 24 the issuance of the bond anticipation notes may provide. 25 (c) The bond anticipation notes may be made payable as 26 to both principal and interest from the proceeds of the 27 Bonds. The Authority may provide for payment of interest on 28 the bond anticipation notes from direct annual taxes upon all 29 the taxable property located within the district that are 30 authorized to be levied annually for that purpose without 31 limit as to rate or amount sufficient to pay the interest as 32 it falls due, in the manner, subject to the security interest 33 and lien, and with the effect provided in Section 1E-75 of HB5734 Enrolled -29- LRB9214200LDtm 1 this Code. 2 (d) The Authority is authorized to issue renewal notes 3 in the event it is unable to issue Bonds to pay outstanding 4 bond anticipation notes, on terms the Authority deems 5 reasonable. 6 (e) A debt service fund shall be established in the 7 manner provided in Section 1E-80 of this Code by the 8 Authority for the bond anticipation notes, and the proceeds 9 of any tax levy made pursuant to this Section shall be 10 deposited in the fund upon receipt. 11 (105 ILCS 5/1E-95 new) 12 Sec. 1E-95. Vesting powers in trustee or other authorized 13 agent. The resolution authorizing issuance of the Bonds shall 14 vest in a trustee, paying agent, escrow agent, or depository 15 such rights, powers, and duties in trust as the Authority may 16 determine and may contain such provisions for protecting and 17 enforcing the rights and remedies of the holders of the Bonds 18 and limiting such rights and remedies as may be reasonable 19 and proper and not in violation of law, including covenants 20 setting forth the duties of the Authority in relation to the 21 exercise of its corporate powers and the custody, 22 safeguarding, and application of all moneys. The resolution 23 shall provide for the manner in which moneys in the various 24 funds and accounts of the Authority may be invested and the 25 disposition of the earnings on the investments. 26 (105 ILCS 5/1E-100 new) 27 Sec. 1E-100. Discharge of bonds. 28 (a) If the Authority pays or causes to be paid to the 29 holders of all Bonds then outstanding the principal, 30 redemption price, if any, and interest to become due on the 31 Bonds, at the times and in the manner stipulated therein and 32 in the resolution authorizing the issuance of the Bonds, then HB5734 Enrolled -30- LRB9214200LDtm 1 the covenants, agreements, and other obligations of the 2 Authority to the Bondholders shall be discharged and 3 satisfied. 4 (b) Bonds or interest installments for the payment or 5 redemption of which moneys have been set aside and held in 6 trust by the trustee or other authorized agent provided for 7 in Section 1E-95 of this Code, through deposit by the 8 Authority of funds for the payment, redemption, or otherwise, 9 at the maturity or redemption date, are deemed to have been 10 paid within the meaning and with the effect expressed in 11 subsection (a) of this Section. All outstanding Bonds of any 12 series, prior to the maturity or redemption date, are deemed 13 to have been paid within the meaning and with the effect 14 expressed in subsection (a) of this Section if (1) there has 15 been deposited with the trustee or other authorized agent 16 either (A) moneys in an amount that is sufficient or (B) 17 direct obligations of the United States of America the 18 principal of and the interest on which, when due, will 19 provide moneys that, together with the moneys, if any, 20 deposited with the trustee or other authorized agent at the 21 same time, are sufficient to pay, when due, the principal, 22 sinking fund installment, or redemption price, if applicable, 23 of and interest due and to become due on the Bonds on and 24 prior to the redemption date, sinking fund installment date, 25 or maturity date, as the case may be, and (2) the Authority 26 has given the trustee or other authorized agent, in form 27 satisfactory to it, irrevocable instructions to give notice 28 to the effect and in accordance with the procedures provided 29 in the resolution authorizing the issuance of the Bonds. 30 Neither direct obligations of the United States of America, 31 moneys deposited with the trustee or other authorized agent, 32 or principal or interest payments on the securities shall be 33 withdrawn or used for any purpose other than, and shall be 34 held in trust for, the payment of the principal or redemption HB5734 Enrolled -31- LRB9214200LDtm 1 price, if applicable, and interest on the Bonds. 2 (105 ILCS 5/1E-105 new) 3 Sec. 1E-105. Pledge of the State. The State of Illinois 4 pledges to and agrees with the holders of Bonds that the 5 State will not limit or alter the rights and powers vested in 6 the Authority by this Article with respect to the issuance of 7 obligations so as to impair the terms of any contract made by 8 the Authority with these holders or in any way impair the 9 rights and remedies of these holders until the Bonds, 10 together with interest on the Bonds, interest on any unpaid 11 installments of interest, and all costs and expenses in 12 connection with any action or proceedings by or on behalf of 13 these holders, are fully met and discharged or provisions 14 made for their payment. The Authority is authorized to 15 include this pledge and agreement of the State in any 16 resolution or contract with the holders of Bonds. 17 (105 ILCS 5/1E-110 new) 18 Sec. 1E-110. Statutory lien. Any pledge, assignment, 19 lien, or security interest for the benefit of the holders of 20 Bonds or bond anticipation notes, if any, created pursuant to 21 this Article are valid and binding from the time the Bonds 22 are issued, without any physical delivery or further act, and 23 are valid and binding as against and prior to any claims of 24 all other parties having claims of any kind in tort, 25 contract, or otherwise against the State, the Authority, the 26 district, or any other person, irrespective of whether the 27 other parties have notice. 28 (105 ILCS 5/1E-115 new) 29 Sec. 1E-115. State or district not liable on obligations. 30 Obligations shall not be deemed to constitute (i) a debt or 31 liability of the State, the district, or any political HB5734 Enrolled -32- LRB9214200LDtm 1 subdivision of the State or district other than the Authority 2 or (ii) a pledge of the full faith and credit of the State, 3 the district, or any political subdivision of the State or 4 district other than the Authority but shall be payable solely 5 from the funds and revenues provided for in this Article. The 6 issuance of obligations shall not directly, indirectly, or 7 contingently obligate the State, the district, or any 8 political subdivision of the State or district other than the 9 Authority to levy any form of taxation therefor or to make 10 any appropriation for their payment. Nothing in this Section 11 shall prevent or be construed to prevent the Authority from 12 pledging its full faith and credit to the payment of 13 obligations. Nothing in this Article shall be construed to 14 authorize the Authority to create a debt of the State or the 15 district within the meaning of the Constitution or laws of 16 Illinois, and all obligations issued by the Authority 17 pursuant to the provisions of this Article are payable and 18 shall state that they are payable solely from the funds and 19 revenues pledged for their payment in accordance with the 20 resolution authorizing their issuance or any trust indenture 21 executed as security therefor. The State or the district 22 shall not in any event be liable for the payment of the 23 principal of or interest on any obligations of the Authority 24 or for the performance of any pledge, obligation, or 25 agreement of any kind whatsoever that may be undertaken by 26 the Authority. No breach of any such pledge, obligation, or 27 agreement may impose any liability upon the State or the 28 district or any charge upon their general credit or against 29 their taxing power. 30 (105 ILCS 5/1E-120 new) 31 Sec. 1E-120. Obligations as legal investments. The 32 obligations issued under the provisions of this Article are 33 hereby made securities in which all public officers and HB5734 Enrolled -33- LRB9214200LDtm 1 bodies of this State, all political subdivisions of this 2 State, all persons carrying on an insurance business, all 3 banks, bankers, trust companies, saving banks, and savings 4 associations (including savings and loan associations, 5 building and loan associations, investment companies, and 6 other persons carrying on a banking business), and all credit 7 unions, pension funds, administrators, and guardians who are 8 or may be authorized to invest in bonds or in other 9 obligations of the State may properly and legally invest 10 funds, including capital, in their control or belonging to 11 them. The obligations are also hereby made securities that 12 may be deposited with and may be received by all public 13 officers and bodies of the State, all political subdivisions 14 of the State, and public corporations for any purpose for 15 which the deposit of bonds or other obligations of the State 16 is authorized. 17 (105 ILCS 5/1E-125 new) 18 Sec. 1E-125. Complete authority. This Article, without 19 reference to any other law, shall be deemed full and complete 20 authority for the issuance of Bonds and bond anticipation 21 notes as provided in this Article. 22 (105 ILCS 5/1E-130 new) 23 Sec. 1E-130. Reports. 24 (a) The Authority, upon taking office and annually 25 thereafter, shall prepare and submit to the Governor, General 26 Assembly, and State Superintendent a report that includes the 27 audited financial statement for the preceding fiscal year, an 28 approved financial plan, and a statement of the major steps 29 necessary to accomplish the objectives of the financial plan. 30 (b) Annual reports shall be submitted on or before March 31 1 of each year. 32 (c) The requirement for reporting to the General HB5734 Enrolled -34- LRB9214200LDtm 1 Assembly shall be satisfied by filing copies of the report as 2 provided in Section 3.1 of the General Assembly Organization 3 Act and by filing additional copies with the State Government 4 Report Distribution Center for the General Assembly as 5 required under subdivision (t) of Section 7 of the State 6 Library Act. 7 (105 ILCS 5/1E-135 new) 8 Sec. 1E-135. Audit of Authority. The Authority shall be 9 subject to audit in the manner provided for the audit of 10 State funds and accounts. A copy of the audit report shall be 11 submitted to the State Superintendent, the Governor, the 12 Speaker and Minority Leader of the House of Representatives, 13 and the President and Minority Leader of the Senate. 14 (105 ILCS 5/1E-140 new) 15 Sec. 1E-140. Assistance by State agencies, units of local 16 government, and school districts. The district shall render 17 such services to and permit the use of its facilities and 18 resources by the Authority at no charge as may be requested 19 by the Authority. Any State agency, unit of local government, 20 or school district may, within its lawful powers and duties, 21 render such services to the Authority as may be requested by 22 the Authority. Upon request of the Authority, any State 23 agency, unit of local government, or school district is 24 authorized and empowered to loan to the Authority such 25 officers and employees as the Authority may deem necessary in 26 carrying out its functions and duties. Officers and employees 27 so transferred shall not lose or forfeit their employment 28 status or rights. 29 (105 ILCS 5/1E-145 new) 30 Sec. 1E-145. Property of Authority exempt from taxation. 31 The property of the Authority is exempt from taxation. HB5734 Enrolled -35- LRB9214200LDtm 1 (105 ILCS 5/1E-150 new) 2 Sec. 1E-150. Sanctions. 3 (a) No member, officer, employee, or agent of the 4 district may commit the district to any contract or other 5 obligation or incur any liability on behalf of the district 6 for any purpose if the amount of the contract, obligation, or 7 liability is in excess of the amount authorized for that 8 purpose then available under the financial plan and budget 9 then in effect. 10 (b) No member, officer, employee, or agent of the 11 district may commit the district to any contract or other 12 obligation on behalf of the district for the payment of money 13 for any purpose required to be approved by the Authority 14 unless the contract or other obligation has been approved by 15 the Authority. 16 (c) No member, officer, employee, or agent of the 17 district may take any action in violation of any valid order 18 of the Authority, may fail or refuse to take any action 19 required by any such order, may prepare, present, certify, or 20 report any information, including any projections or 21 estimates, for the Authority or any of its agents that is 22 false or misleading, or, upon learning that any such 23 information is false or misleading, may fail promptly to 24 advise the Authority or its agents. 25 (d) In addition to any penalty or liability under any 26 other law, any member, officer, employee, or agent of the 27 district who violates subsection (a), (b), or (c) of this 28 Section is subject to appropriate administrative discipline 29 as may be imposed by the Authority, including, if warranted, 30 suspension from duty without pay, removal from office, or 31 termination of employment. 32 (105 ILCS 5/1E-155 new) 33 Sec. 1E-155. Abolition of Authority. The Authority shall HB5734 Enrolled -36- LRB9214200LDtm 1 be abolished 10 years after its creation or one year after 2 all its obligations issued under the provisions of this 3 Article have been fully paid and discharged, whichever comes 4 later. However, the State Board, upon recommendation of the 5 Authority and if no obligations are outstanding, may abolish 6 the Authority at any time after the Authority has been in 7 existence for 3 years. Upon the abolition of the Authority, 8 all of its records shall be transferred to the State Board 9 and any property of the Authority shall pass to and be vested 10 in the State Board. 11 (105 ILCS 5/1E-160 new) 12 Sec. 1E-160. Limitations of actions after abolition; 13 indemnification; legal representation. 14 (a) Abolition of the Authority pursuant to Section 15 1E-155 of this Code shall bar any remedy available against 16 the Authority, its members, employees, or agents for any 17 right or claim existing or any liability incurred prior to 18 the abolition unless the action or other proceeding is 19 commenced prior to the expiration of 2 years after the date 20 of the abolition. 21 (b) The Authority may indemnify any member, officer, 22 employee, or agent who was or is a party or is threatened to 23 be made a party to any threatened, pending, or completed 24 action, suit, or proceeding, whether civil, criminal, 25 administrative, or investigative, by reason of the fact that 26 he or she was a member, officer, employee, or agent of the 27 Authority, against expenses (including attorney's fees, 28 judgments, fines, and amounts paid in settlement actually and 29 reasonably incurred by him or her in connection with the 30 action, suit, or proceeding) if he or she acted in good faith 31 and in a manner that he or she reasonably believed to be in 32 or not opposed to the best interests of the Authority and, 33 with respect to any criminal action or proceeding, had no HB5734 Enrolled -37- LRB9214200LDtm 1 reasonable cause to believe his or her conduct was unlawful. 2 The termination of any action, suit, or proceeding by 3 judgment, order, settlement, or conviction or upon a plea of 4 nolo contendere or its equivalent, shall not, of itself, 5 create a presumption that the person did not act in good 6 faith in a manner that he or she reasonably believed to be in 7 or not opposed to the best interest of the Authority and, 8 with respect to any criminal action or proceeding, had 9 reasonable cause to believe that his or her conduct was 10 unlawful. 11 To the extent that a member, officer, employee, or agent 12 of the Authority has been successful, on the merits or 13 otherwise, in the defense of any such action, suit, or 14 proceeding referred to in this subsection (b) or in defense 15 of any claim, issue, or matter therein, he or she shall be 16 indemnified against expenses, including attorney's fees, 17 actually and reasonably incurred by him or her in connection 18 therewith. Any such indemnification shall be made by the 19 Authority only as authorized in the specific case, upon a 20 determination that indemnification of the member, officer, 21 employee, or agent is proper in the circumstances because he 22 or she has met the applicable standard of conduct. The 23 determination shall be made (i) by the Authority by a 24 majority vote of a quorum consisting of members who are not 25 parties to the action, suit, or proceeding or (ii) if such a 26 quorum is not obtainable or, even if obtainable, a quorum of 27 disinterested members so directs, by independent legal 28 counsel in a written opinion. 29 Reasonable expenses incurred in defending an action, 30 suit, or proceeding shall be paid by the Authority in advance 31 of the final disposition of the action, suit, or proceeding, 32 as authorized by the Authority in the specific case, upon 33 receipt of an undertaking by or on behalf of the member, 34 officer, employee, or agent to repay the amount, unless it is HB5734 Enrolled -38- LRB9214200LDtm 1 ultimately determined that he or she is entitled to be 2 indemnified by the Authority as authorized in this Section. 3 Any member, officer, employee, or agent against whom any 4 action, suit, or proceeding is brought may employ his or her 5 own attorney to appear on his or her behalf. 6 The right to indemnification accorded by this Section 7 shall not limit any other right to indemnification to which 8 the member, officer, employee, or agent may be entitled. Any 9 rights under this Section shall inure to the benefit of the 10 heirs, executors, and administrators of any member, officer, 11 employee, or agent of the Authority. 12 The Authority may purchase and maintain insurance on 13 behalf of any person who is or was a member, officer, 14 employee, or agent of the Authority against any liability 15 asserted against him or her and incurred by him or her in any 16 such capacity or arising out of his or her status as such, 17 whether or not the Authority would have the power to 18 indemnify him or her against the liability under the 19 provisions of this Section. 20 The Authority shall be considered a State agency for 21 purposes of receiving representation by the Attorney General. 22 Members, officers, employees, and agents of the Authority 23 shall be entitled to representation and indemnification under 24 the State Employee Indemnification Act. 25 (105 ILCS 5/34-53.5 new) 26 Sec. 34-53.5. Capital improvement tax levy; purpose; 27 maximum amount. 28 (a) For the purpose of providing a reliable source of 29 revenue for capital improvement purposes, including without 30 limitation (i) the construction and equipping of a new school 31 building or buildings or an addition or additions to an 32 existing school building or buildings, (ii) the purchase of 33 school grounds on which any new school building or an HB5734 Enrolled -39- LRB9214200LDtm 1 addition to an existing school building is to be constructed 2 or located, (iii) both items (i) and (ii) of this subsection 3 (a), or (iv) the rehabilitation, renovation, and equipping of 4 an existing school building or buildings, the board may levy, 5 upon all taxable property of the school district, in calendar 6 year 2003, a capital improvement tax to produce, when 7 extended, an amount not to exceed the product attained by 8 multiplying (1) the percentage increase, if any, in the 9 Consumer Price Index for All Urban Consumers for all items 10 published by the United States Department of Labor for the 12 11 months ending 2 months prior to the month in which the levy 12 is adopted by (2) $142,500,000. For example, if the 13 percentage increase in the Consumer Price Index is 2.5%, then 14 the computation would be $142,500,000 x 0.025 = $3,562,500. 15 (b) In each calendar year from 2004 through 2030, the 16 board may levy a capital improvement tax to produce, when 17 extended, an amount not to exceed the sum of (1) the maximum 18 amount that could have been levied by the board in the 19 preceding calendar year pursuant to this Section and (2) the 20 product obtained by multiplying (A) the sum of (i) the 21 maximum amount that could have been levied by the board in 22 the preceding calendar year pursuant to this Section and (ii) 23 $142,500,000 by (B) the percentage increase, if any, in the 24 Consumer Price Index for All Urban Consumers for all items 25 published by the United States Department of Labor for the 12 26 months ending 2 months prior to the month in which the levy 27 is adopted. 28 (c) In calendar year 2031, the board may levy a capital 29 improvement tax to produce, when extended, an amount not to 30 exceed the sum of (1) the maximum amount that could have been 31 levied by the board in calendar year 2030 pursuant to this 32 Section, (2) $142,500,000, and (3) the product obtained by 33 multiplying (A) the sum of (i) the maximum amount that could 34 have been levied by the board in calendar year 2030 pursuant HB5734 Enrolled -40- LRB9214200LDtm 1 to this Section and (ii) $142,500,000 by (B) the percentage 2 increase, if any, in the Consumer Price Index for All Urban 3 Consumers for all items published by the United States 4 Department of Labor for the 12 months ending 2 months prior 5 to the month in which the levy is adopted. 6 (d) In calendar year 2032 and each calendar year 7 thereafter, the board may levy a capital improvement tax to 8 produce, when extended, an amount not to exceed the sum of 9 (1) the maximum amount that could have been levied by the 10 board in the preceding calendar year pursuant to this Section 11 and (2) the product obtained by multiplying (A) the maximum 12 amount that could have been levied by the board in the 13 preceding calendar year pursuant to this Section by (B) the 14 percentage increase, if any, in the Consumer Price Index for 15 All Urban Consumers for all items published by the United 16 States Department of Labor for the 12 months ending 2 months 17 prior to the month in which the levy is adopted. 18 (e) An initial tax levy made by the board under this 19 Section must have the approval of the Chicago City Council, 20 by resolution, before the levy may be extended. The board 21 shall communicate its adoption of the initial tax levy by 22 delivering a certified copy of the levy resolution to the 23 Clerk of the City of Chicago. The Chicago City Council shall 24 have 60 days after receipt, by the Clerk of the City of 25 Chicago, of the certified resolution to approve or disapprove 26 the levy. The failure of the Chicago City Council to take 27 action to approve or disapprove the initial tax levy within 28 the 60-day period shall be deemed disapproval of the initial 29 tax levy. Upon the adoption of each subsequent levy by the 30 board under this Section, the board must notify the Chicago 31 City Council that the board has adopted the levy. 32 (f) The board may issue bonds, in accordance with the 33 Local Government Debt Reform Act, including Section 15 of 34 that Act, against any revenues to be collected from the HB5734 Enrolled -41- LRB9214200LDtm 1 capital improvement tax in any year or years and may pledge, 2 pursuant to Section 13 of the Local Government Debt Reform 3 Act, those revenues as security for the payment of any such 4 bonds. 5 Section 15. The Illinois Educational Labor Relations Act 6 is amended by changing Section 2 as follows: 7 (115 ILCS 5/2) (from Ch. 48, par. 1702) 8 Sec. 2. Definitions. As used in this Act: 9 (a) "Educational employer" or "employer" means the 10 governing body of a public school district, combination of 11 public school districts, including the governing body of 12 joint agreements of any type formed by 2 or more school 13 districts, public community college district or State college 14 or university, and any State agency whose major function is 15 providing educational services. "Educational employer" or 16 "employer" does not include a Financial Oversight Panel 17 created pursuant to Section 1A-8 of the School Code due to a 18 district violating a financial plan but does include a School 19 Finance Authority created under Article 1E of the School 20 Code. 21 (b) "Educational employee" or "employee" means any 22 individual, excluding supervisors, managerial, confidential, 23 short term employees, student, and part-time academic 24 employees of community colleges employed full or part time by 25 an educational employer, but shall not include elected 26 officials and appointees of the Governor with the advice and 27 consent of the Senate, firefighters as defined by subsection 28 (g-1) of Section 3 of the Illinois Public Labor Relations 29 Act, and peace officers employed by a State university. For 30 the purposes of this Act, part-time academic employees of 31 community colleges shall be defined as those employees who 32 provide less than 6 credit hours of instruction per academic HB5734 Enrolled -42- LRB9214200LDtm 1 semester. 2 (c) "Employee organization" or "labor organization" 3 means an organization of any kind in which membership 4 includes educational employees, and which exists for the 5 purpose, in whole or in part, of dealing with employers 6 concerning grievances, employee-employer disputes, wages, 7 rates of pay, hours of employment, or conditions of work, but 8 shall not include any organization which practices 9 discrimination in membership because of race, color, creed, 10 age, gender, national origin or political affiliation. 11 (d) "Exclusive representative" means the labor 12 organization which has been designated by the Illinois 13 Educational Labor Relations Board as the representative of 14 the majority of educational employees in an appropriate unit, 15 or recognized by an educational employer prior to January 1, 16 1984 as the exclusive representative of the employees in an 17 appropriate unit or, after January 1, 1984, recognized by an 18 employer upon evidence that the employee organization has 19 been designated as the exclusive representative by a majority 20 of the employees in an appropriate unit. 21 (e) "Board" means the Illinois Educational Labor 22 Relations Board. 23 (f) "Regional Superintendent" means the regional 24 superintendent of schools provided for in Articles 3 and 3A 25 of The School Code. 26 (g) "Supervisor" means any individual having authority 27 in the interests of the employer to hire, transfer, suspend, 28 lay off, recall, promote, discharge, reward or discipline 29 other employees within the appropriate bargaining unit and 30 adjust their grievances, or to effectively recommend such 31 action if the exercise of such authority is not of a merely 32 routine or clerical nature but requires the use of 33 independent judgment. The term "supervisor" includes only 34 those individuals who devote a preponderance of their HB5734 Enrolled -43- LRB9214200LDtm 1 employment time to such exercising authority. 2 (h) "Unfair labor practice" or "unfair practice" means 3 any practice prohibited by Section 14 of this Act. 4 (i) "Person" includes an individual, educational 5 employee, educational employer, legal representative, or 6 employee organization. 7 (j) "Wages" means salaries or other forms of 8 compensation for services rendered. 9 (k) "Professional employee" means, in the case of a 10 public community college, State college or university, State 11 agency whose major function is providing educational 12 services, the Illinois School for the Deaf, and the Illinois 13 School for the Visually Impaired, (1) any employee engaged in 14 work (i) predominantly intellectual and varied in character 15 as opposed to routine mental, manual, mechanical, or physical 16 work; (ii) involving the consistent exercise of discretion 17 and judgment in its performance; (iii) of such character that 18 the output produced or the result accomplished cannot be 19 standardized in relation to a given period of time; and (iv) 20 requiring knowledge of an advanced type in a field of science 21 or learning customarily acquired by a prolonged course of 22 specialized intellectual instruction and study in an 23 institution of higher learning or a hospital, as 24 distinguished from a general academic education or from an 25 apprenticeship or from training in the performance of routine 26 mental, manual, or physical processes; or (2) any employee, 27 who (i) has completed the courses of specialized intellectual 28 instruction and study described in clause (iv) of paragraph 29 (1) of this subsection, and (ii) is performing related work 30 under the supervision of a professional person to qualify 31 himself or herself to become a professional as defined in 32 paragraph (l). 33 (l) "Professional employee" means, in the case of any 34 public school district, or combination of school districts HB5734 Enrolled -44- LRB9214200LDtm 1 pursuant to joint agreement, any employee who has a 2 certificate issued under Article 21 or Section 34-83 of the 3 School Code, as now or hereafter amended. 4 (m) "Unit" or "bargaining unit" means any group of 5 employees for which an exclusive representative is selected. 6 (n) "Confidential employee" means an employee, who (i) 7 in the regular course of his or her duties, assists and acts 8 in a confidential capacity to persons who formulate, 9 determine and effectuate management policies with regard to 10 labor relations or who (ii) in the regular course of his or 11 her duties has access to information relating to the 12 effectuation or review of the employer's collective 13 bargaining policies. 14 (o) "Managerial employee" means an individual who is 15 engaged predominantly in executive and management functions 16 and is charged with the responsibility of directing the 17 effectuation of such management policies and practices. 18 (p) "Craft employee" means a skilled journeyman, craft 19 person, and his or her apprentice or helper. 20 (q) "Short-term employee" is an employee who is employed 21 for less than 2 consecutive calendar quarters during a 22 calendar year and who does not have a reasonable assurance 23 that he or she will be rehired by the same employer for the 24 same service in a subsequent calendar year. Nothing in this 25 subsection shall affect the employee status of individuals 26 who were covered by a collective bargaining agreement on the 27 effective date of this amendatory Act of 1991. 28 (Source: P.A. 89-409, eff. 11-15-95; 89-572, eff. 7-30-96.) 29 Section 99. Effective date. This Act takes effect upon 30 becoming law.
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