Public Act 90-0548 of the 90th General Assembly

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Public Act 90-0548

HB0452 Enrolled                                LRB9002549THcd

    AN ACT relating to education, amending named Acts.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

                          ARTICLE 5

    Section  5-1.  Short title.  This Article may be cited as
the School Construction Law.

    Section 5-5. Definitions.  As used in this Article:
    "Approved school construction bonds" mean bonds that were
approved by referendum after January 1,  1996  but  prior  to
January  1, 1998 as provided in Sections 19-2 through 19-7 of
the  School  Code  to  provide  funds  for  the  acquisition,
development,  construction,  reconstruction,  rehabilitation,
improvement,  architectural  planning,  and  installation  of
capital  facilities  consisting  of  buildings,   structures,
durable-equipment, and land for educational purposes.
    "Grant  index"  means  a  figure for each school district
equal to one minus the  ratio  of  the  district's  equalized
assessed  valuation  per pupil in average daily attendance to
the equalized assessed valuation per pupil in  average  daily
attendance of the district located at the 90th percentile for
all  districts of the same type.  The grant index shall be no
less than 0.35 and no greater than 0.75  for  each  district;
provided  that  the grant index for districts whose equalized
assessed valuation per pupil in average daily  attendance  is
at  the  99th  percentile  and above for all districts of the
same type shall be 0.00.
    "School  construction  project"  means  the  acquisition,
development,  construction,  reconstruction,  rehabilitation,
improvement,  architectural  planning,  and  installation  of
capital  facilities  consisting  of  buildings,   structures,
durable equipment, and land for educational purposes.

    Section  5-10.   Grant  awards.   The Capital Development
Board is authorized to make grants to  school  districts  for
school  construction  projects with funds appropriated by the
General    Assembly  from  the  School  Infrastructure   Fund
pursuant  to  the provisions of this Article. The State Board
of Education is authorized to make grants to school districts
for debt service  with  funds  appropriated  by  the  General
Assembly  from the School Infrastructure Fund pursuant to the
provisions of this Article.

    Section 5-15. Grant entitlements.   The  State  Board  of
Education  is  authorized  to  issue  grant  entitlements for
school construction  projects  and  debt  service  and  shall
determine  the priority order for school construction project
grants to be made by the Capital Development Board.

    Section 5-20.   Grant  application;  district  facilities
plan.   School  districts  shall  apply to the State Board of
Education for school construction  project  grants  and  debt
service  grants.   Districts  filing grant applications shall
submit to the State Board a  district  facilities  plan  that
shall  include,    but  not  be  limited to, an assessment of
present and future district facility  needs  as  required  by
present   and   anticipated   educational   programming,  the
availability of local financial resources  including  current
revenues,  fund  balances,  and  unused  bonding  capacity, a
fiscal plan for meeting present and anticipated debt  service
obligations, and a maintenance plan and schedule that contain
necessary   assurances  that  new,  renovated,  and  existing
facilities are being or will be  properly  maintained.    The
State  Board  of  Education shall review and approve district
facilities plans prior to issuing grant  entitlements.   Each
district  that  receives  a  grant entitlement shall annually
update its district facilities plan and  submit  the  revised
plan to the State Board for approval.

    Section 5-25.  Eligibility and project standards.
    (a)  The   State   Board  of  Education  shall  establish
eligibility standards for school construction project  grants
and  debt  service  grants.   These  standards  shall include
minimum enrollment requirements for  eligibility  for  school
construction  project  grants  of 200 students for elementary
districts, 200 students for high school  districts,  and  400
students  for  unit  districts.  The State Board of Education
shall  approve  a  district's  eligibility   for   a   school
construction  project  grant or a debt service grant pursuant
to the established standards.
    (b)  The  Capital  Development  Board   shall   establish
project  standards for all school construction project grants
provided pursuant to this  Article.   These  standards  shall
include   space   and  capacity  standards  as  well  as  the
determination of  recognized  project  costs  that  shall  be
eligible  for State financial assistance and enrichment costs
that shall not be eligible for State financial assistance.

    Section 5-30. Priority of school  construction  projects.
The  State Board of Education shall develop standards for the
determination   of   priority   needs    concerning    school
construction projects based upon approved district facilities
plans.  Such standards shall call for prioritization based on
the degree of need and project type in the following order:
    (1)  Replacement  or  reconstruction  of school buildings
destroyed or damaged by flood, tornado, fire, earthquake,  or
other disasters, either man-made or produced by nature;
    (2)  Projects   designed   to  alleviate  a  shortage  of
classrooms due to  population  growth  or  to  replace  aging
school buildings;
    (3)  Projects resulting from interdistrict reorganization
of school districts contingent on local referenda;
    (4)  Replacement  or reconstruction of school  facilities
determined to be severe and continuing health or life  safety
hazards;
    (5)  Alterations  necessary  to provide accessibility for
qualified individuals with disabilities; and
    (6)  Other unique solutions to facility needs.

    Section   5-35.   School   construction   project   grant
amounts-Prohibited use.
    (a)  The product of the district's grant  index  and  the
recognized   project  cost,  as  determined  by  the  Capital
Development  Board,  for  an  approved  school   construction
project  shall  equal  the  amount  of  the grant the Capital
Development Board shall provide  to  the  eligible  district.
The  grant index shall not be used in cases where the General
Assembly and the Governor approve  appropriations  designated
for  specifically  identified  school  district  construction
projects.
    (b)  In  each  fiscal  year  in which school construction
project grants are awarded, 20% of the total  amount  awarded
statewide  shall  be  awarded  to  a  school  district with a
population exceeding 500,000, provided such district complies
with the provisions of this Article.
    (c)  No portion of a school  construction  project  grant
awarded  by  the Capital Development Board shall be used by a
school district for any on-going operational costs.

    Section  5-40.   Supervision   of   school   construction
projects.   The  Capital  Development  Board  shall  exercise
general   supervision   over   school  construction  projects
financed pursuant to this Article.
    Section 5-45.  Debt  service  grants.   School  districts
that  have issued approved school construction bonds shall be
eligible to  apply  for  debt  service  grants.   The  amount
awarded  to  eligible districts for debt service grants shall
be equal to 10% of the principal amount  of  approved  school
construction  bonds  issued  by  the district times the grant
index for the district.  Debt service grants  shall  only  be
used  by  school  districts  to: retire principal of approved
school construction bonds, restructure the  debt  service  on
such  bonds,  or  abate  the  property  taxes  levied for the
district's bond and interest fund by an amount  identical  to
the amount of the debt service grant.  No debt service grants
shall  be  awarded by the State Board of Education after June
30, 1999.

    Section 5-50. Referendum requirements.  After  the  State
Board  of  Education has approved all or part of a district's
application and issued  a  grant  entitlement  for  a  school
construction  project  grant,  the  district shall submit the
project or the financing of the project to a referendum  when
such referendum is required by law.

    Section 5-55. Rules.
    (a)  The  Capital Development Board shall promulgate such
rules  as  it  deems   necessary   for   carrying   out   its
responsibilities under the provisions of this Article.
    (b)  The  State  Board of Education shall promulgate such
rules  as  it  deems   necessary   for   carrying   out   its
responsibilities under the provisions of this Article.

    (20 ILCS 3105/Art. 1A rep.)
    Section  5-900.   The  Capital  Development  Board Act is
amended by repealing Article 1A.
    Section 5-905.  The  State  Finance  Act  is  amended  by
adding Sections 5.500, 5.505, and 6z-45 as follows:

    (30 ILCS 105/5.500 new)
    Sec. 5.500. The School Infrastructure Fund.

    (30 ILCS 105/5.505 new)
    Sec. 5.505. The School Technology Revolving Loan Fund.

    (30 ILCS 105/6z-45 new)
    Sec.  6z-45.  The School Infrastructure Fund.  The School
Infrastructure Fund is created as a special fund in the State
Treasury.  Subject to  appropriation,  money  in  the  School
Infrastructure  Fund shall, if and when the State of Illinois
incurs any bonded indebtedness for the construction of school
improvements under the School Construction Act, be set  aside
and  used  for the purpose of paying and discharging annually
the principal and interest on that bonded  indebtedness  then
due  and  payable, and for no other purpose.  The surplus, if
any, in the School Infrastructure Fund after the  payment  of
principal  and  interest  on  that  bonded  indebtedness then
annually due shall, subject  to  appropriation,  be  used  as
follows:
    First--to  make  3  payments  to  the  School  Technology
Revolving Loan Fund as follows:
    Transfer of $30,000,000 in fiscal year 1999;
    Transfer of $20,000,000 in fiscal year 2000; and
    Transfer of $10,000,000 in fiscal year 2001.
    Second--to  pay  the  expenses  of  the  State  Board  of
Education  and the Capital Development Board in administering
programs  under  the  School  Construction  Act,  the   total
expenses not to exceed $1,000,000 in any fiscal year.
    Third--to  pay  any  amounts  due  for  grants for school
construction projects  and  debt  service  under  the  School
Construction Act.

    Section  5-910.   The Illinois Pension Code is amended by
changing Sections 17-108, 17-127, and 17-129 as follows:

    (40 ILCS 5/17-108) (from Ch. 108 1/2, par. 17-108)
    Sec. 17-108. Fiscal year and school year.
    "Fiscal year" and "school year": Beginning July 1,  1999,
the  period beginning on the 1st day of July September of one
calendar year and ending on the 30th 31st day of June  August
of  the  next calendar year. Each fiscal year and each school
year shall be designated for convenience with the same number
as the calendar year in which that fiscal year or school year
ends. The fiscal year which begins September  1,  1998  shall
end June 30, 1999.
(Source: P.A. 83-792.)

    (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
    Sec. 17-127. Financing; revenues for the Fund.
    (a)  The  revenues  for  the  Fund  shall consist of: (1)
amounts paid into the Fund by contributors thereto  and  from
employer  contributions  taxes  and  State  appropriations in
accordance with this Article; (2) amounts contributed to  the
Fund  pursuant  to  any  law  now in force or hereafter to be
enacted; (3) contributions from any other source; and (4) the
earnings on investments.
    (b)  The General Assembly finds that for many  years  the
State  has  contributed  to the Fund an annual amount that is
between 20% and  30%  of  the  amount  of  the  annual  State
contribution  to  the  Article  16 retirement system, and the
General Assembly declares that it is its goal  and  intention
to  continue  this  level  of contribution to the Fund in the
future.
(Source: P.A. 88-593, eff. 8-22-94.)
    (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
    Sec. 17-129. Employer contributions; deficiency in Fund.
    (a)  If in any fiscal year  of  the  board  of  education
ending  prior to 1997 the total amounts paid to the Fund from
the board of education (other than under this subsection, and
other  than  amounts  used  for  making   or   "picking   up"
contributions  on  behalf  of teachers) and from the State do
not equal the total contributions made by or on behalf of the
teachers for such year, or if the total income of the Fund in
any such fiscal year of  the  board  of  education  from  all
sources  is less than the total such expenditures by the Fund
for such year, the Board of  Education  shall,  in  the  next
succeeding year, in addition to any other payment to the Fund
set  apart  and appropriate from moneys from its tax levy for
educational  purposes,  a  sum  sufficient  to  remove   such
deficiency  or  deficiencies,  and promptly pay such sum into
the Fund in order to restore any of the reserves of the  Fund
that  may  have  been  so  temporarily  applied.  Any amounts
received by  the  Fund  after  the  effective  date  of  this
amendatory  Act  of 1997 from State appropriations, including
under Section 17-127, shall be a  credit  against  and  shall
fully  satisfy  any  obligation  that  may have arisen, or be
claimed to have arisen, under this subsection (a) as a result
of any deficiency or deficiencies in the fiscal year  of  the
board of education ending in calendar year 1997.
    (b)  (i)  For fiscal years 2011 through 2045, the minimum
contribution to the Fund to be made by the board of education
in each fiscal year shall be an amount determined by the Fund
to  be sufficient to bring the total assets of the Fund up to
90% of the total actuarial liabilities of the Fund by the end
of fiscal year 2045.  In  making  these  determinations,  the
required  board of education contribution shall be calculated
each year as a level percentage of  payroll  over  the  years
remaining  to  and  including  fiscal  year 2045 and shall be
determined under the projected  unit  credit  actuarial  cost
method.
    (ii)  For  fiscal  years  1999 through 2010, the board of
education's contribution to the Fund, as a percentage of  the
applicable  employee  payroll,  shall  be  increased in equal
annual increments so that by fiscal year 2011, the  board  of
education  is  contributing  at  the rate required under this
subsection.
    (iii)  Beginning in fiscal year 2046, the  minimum  board
of  education  contribution for each fiscal year shall be the
amount needed to maintain the total assets of the Fund at 90%
of the total actuarial liabilities of the Fund.
    (iv)  Notwithstanding the provisions of  paragraphs  (i),
(ii),  and  (iii) of this subsection (b), for any fiscal year
the contribution to the Fund  from  the  board  of  education
shall  not  be  required  to  be  in  excess  of  the  amount
calculated  as  needed  to  maintain the assets (or cause the
assets to be) at the 90% level by the end of the fiscal year.
    (v)  Any contribution by the State to or for the  benefit
of  the  Fund,  including, without limitation, as referred to
under  Section  17-127,  shall  be  a  credit   against   any
contribution  required  to  be made by the board of education
under this subsection (b).
    (c)  The Board of Trustees shall determine the amount  of
board  of  education  contributions  required for each fiscal
year  on  the  basis  of  the  actuarial  tables  and   other
assumptions  adopted  by the Board and the recommendations of
the actuary,  in  order  to  meet  the  minimum  contribution
requirements  of  subsections  (a)  and (b).  Annually, on or
before November 15, the Board shall certify to the  board  of
education  the  amount  of  the  required  board of education
contribution for the coming fiscal year.   The  certification
shall  include  a  copy of the actuarial recommendations upon
which it is based.
(Source: P.A. 89-15, eff. 5-30-95.)

    Section 5-915.  The School Code is  amended  by  changing
Sections  1A-2,  1A-4,  1B-8,  1C-2,  2-3.51, 2-3.51.5, 7-11,
10-20.9a,  10-22.6,  10-22.20,  10-22.23,  10-23.5,  10-23.8,
10-23.8a, 18-4.3, 18-7, 18-8, 18-8.2,  21-1a,  21-2,  21-2.1,
21-2a,  21-3,  21-4,  21-5,  21-5a,  21-10, 21-11.1, 21-11.3,
21-11.4, 21-14, 24-11, 24A-5,  27A-2,  27A-7,  27A-8,  27A-9,
27A-11,   34-8.4,   34-18,  and  34-84  and  adding  Sections
2-3.117a,  2-3.124,  10-20.30,  10-22.34c,  17-1.5,  18-8.05,
21-0.01, 21-5c, 21-5d, and 34-18.17 as follows:

    (105 ILCS 5/1A-2) (from Ch. 122, par. 1A-2)
    Sec. 1A-2.  Qualifications.  The  members  of  the  State
Board of Education shall be citizens of the United States and
residents  of  the State of Illinois and shall be selected as
far as may be practicable on the basis of their knowledge of,
or interest and experience in, problems of public  education.
No  member of the State Board of Education shall be gainfully
employed  or  administratively  connected  with  any   school
system,  nor  have  any  interest  in  or  benefit from funds
provided by the State Board of Education to an or institution
of higher learning, public or private, within  Illinois,  nor
shall  they  be  members of a school board or board of school
trustees of a public or nonpublic school, college, university
or technical institution within Illinois.   No  member  shall
be appointed to more than 2 six year terms.  Members shall be
reimbursed  for  all ordinary and necessary expenses incurred
in performing their duties as members of the Board.  Expenses
shall be approved by the Board and  be  consistent  with  the
laws,  policies,  and  requirements  of the State of Illinois
regarding such expenditures, plus any member may  include  in
his claim for expenses $50 per day for meeting days.
(Source: P.A. 80-1513.)
    (105 ILCS 5/1A-4) (from Ch. 122, par. 1A-4)
    Sec. 1A-4.  Powers and duties of the Board.
    A.  Upon the appointment of new Board members as provided
in   subsection  (b)  of  Section  1A-1  and  every  2  years
thereafter, the chairperson of the Board shall be selected by
the Governor, with the advice and consent of the Senate, from
the membership of the Board to serve  as  chairperson  for  2
years.
    B.  The  Board  shall determine the qualifications of and
appoint a chief education officer to be known  as  the  State
Superintendent  of  Education who shall serve at the pleasure
of the Board and pursuant  to  a  performance-based  contract
linked   to   statewide   student  performance  and  academic
improvement  within  Illinois   schools.   except   that   No
performance-based  contract  issued for the employment of the
State Superintendent of Education shall be for a term  longer
than  3  years  and  no contract shall be extended or renewed
prior to its scheduled expiration unless the performance  and
improvement  goals  contained  in the contract have been met.
The State Superintendent of Education shall not  serve  as  a
member  of the State Board of Education.  The Board shall set
the compensation of the State Superintendent of Education who
shall serve as the Board's chief executive officer. The Board
shall also establish the duties, powers and  responsibilities
of  the  State Superintendent, which shall be included in the
State Superintendent's performance-based contract along  with
the  goals and indicators of student performance and academic
improvement used to measure the performance and effectiveness
of the State Superintendent such officer. The State Board  of
Education   may  delegate  to  the  State  Superintendent  of
Education  the  authority  to  act  on  the  Board's  behalf,
provided such delegation is made pursuant  to  adopted  board
policy  or  the  powers  delegated are ministerial in nature.
The State Board may not delegate authority under this Section
to  the  State  Superintendent  to  (1)  nonrecognize  school
districts, (2) withhold State payments as a penalty,  or  (3)
make  final  decisions under the contested case provisions of
the Illinois Administrative Procedure  Act  unless  otherwise
provided by law.
    C.  The powers and duties of the State Board of Education
shall  encompass  all  duties  delegated  to  the  Office  of
Superintendent  of  Public  Instruction  on January 12, 1975,
except as the law providing for such  powers  and  duties  is
thereafter  amended,  and such other powers and duties as the
General  Assembly  shall  designate.   The  Board  shall   be
responsible  for  the educational policies and guidelines for
public schools, pre-school through grade  12  and  Vocational
Education  in the State of Illinois.  The Board shall analyze
the present and  future  aims,  needs,  and  requirements  of
education  in  the  State  of  Illinois  and recommend to the
General Assembly the powers which should be exercised by  the
Board.   The  Board  shall  recommend  the  passage  and  the
legislation    necessary   to   determine   the   appropriate
relationship between the Board and local boards of  education
and  the various State agencies and shall recommend desirable
modifications in the laws which affect schools.
    D.  Two members of the Board shall be  appointed  by  the
chairperson to serve on a standing joint Education Committee,
2  others  shall  be  appointed  from  the  Board  of  Higher
Education,  2 others shall be appointed by the chairperson of
the Illinois Community College Board, and 2 others  shall  be
appointed  by the chairperson of the Human Resource Resources
Investment Council.  The Committee shall be  responsible  for
making  recommendations  concerning  the  submission  of  any
workforce  development  plan  or  workforce  training program
required by federal law or under any block  grant  authority.
The  Committee  will  be responsible for developing policy on
matters of mutual concern to elementary, secondary and higher
education such as Occupational and Career Education,  Teacher
Preparation    and    Certification,   Educational   Finance,
Articulation  between  Elementary,   Secondary   and   Higher
Education  and  Research  and  Planning.  The joint Education
Committee shall  meet at least quarterly and submit an annual
report of its findings, conclusions, and  recommendations  to
the  State Board of Education, the Board of Higher Education,
the Illinois Community  College  Board,  the  Human  Resource
Resources  Investment  Council, the Governor, and the General
Assembly. All meetings of this Committee  shall  be  official
meetings for reimbursement under this Act.
    E.  Five  members of the Board shall constitute a quorum.
A majority vote  of  the  members  appointed,  confirmed  and
serving on the Board is required to approve any action.
    The  Board  shall  prepare  and  submit  to  the  General
Assembly  and  the Governor on or before January 14, 1976 and
annually thereafter a report or reports of its  findings  and
recommendations.  Such annual report shall contain a separate
section which provides a critique and analysis of the  status
of  education  in  Illinois and which identifies its specific
problems and recommends express  solutions  therefor.    Such
annual  report  also  shall contain the following information
for the preceding  year  ending  on  June  30:  each  act  or
omission  of  a  school  district of which the State Board of
Education  has  knowledge  as  a  consequence  of  scheduled,
approved visits  and  which  constituted  a  failure  by  the
district  to  comply with applicable State or federal laws or
regulations relating to public education, the  name  of  such
district,  the  date  or  dates  on  which the State Board of
Education  notified  the  school  district  of  such  act  or
omission, and what action, if any, the school  district  took
with  respect  thereto  after  being  notified thereof by the
State Board of Education. The report shall also  include  the
statewide  high  school  dropout rate by grade level, sex and
race and the annual student dropout rate of and the number of
students who graduate from, transfer from or otherwise  leave
bilingual  programs.   The  Auditor  General  shall  annually
perform  a compliance audit of the State Board of Education's
performance of the reporting duty imposed by this  amendatory
Act  of  1986.  A  regular system of communication with other
directly related State agencies shall be implemented.
    The requirement for reporting  to  the  General  Assembly
shall  be  satisfied  by filing copies of the report with the
Speaker, the Minority Leader and the Clerk of  the  House  of
Representatives  and  the  President, the Minority Leader and
the Secretary of the Senate and the Legislative  Council,  as
required  by  Section  3.1  of  "An  Act to revise the law in
relation to the General Assembly Organization Act",  approved
February  25,  1874,  as  amended, and filing such additional
copies with the State Government Report  Distribution  Center
for  the  General Assembly as is required under paragraph (t)
of Section 7 of the State Library Act.
(Source: P.A. 89-430, eff.  12-15-95;  89-610,  eff.  8-6-96;
89-698, eff. 1-14-97; revised 3-31-97.)

    (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
    Sec.  1B-8.   There  is  created  in the State Treasury a
special fund to be known as  the  School  District  Emergency
Financial  Assistance Fund (the "Fund").  The School District
Emergency  Financial  Assistance  Fund   shall   consist   of
appropriations,   grants  from  the  federal  government  and
donations from any public or private source.  Moneys  in  the
Fund  may  be  appropriated  only  to the State Board for the
purposes of this Article.  The appropriation may be allocated
and expended by the State Board as loans to school  districts
which  are  the subject of an approved petition for emergency
financial assistance under Section  1B-4.   From  the  amount
allocated  to each such school district the State Board shall
identify a sum sufficient to cover all approved costs of  the
Financial  Oversight  Panel  established  for  the respective
school district.  If the State Board and State Superintendent
of Education have not approved emergency financial assistance
in conjunction with the appointment of a Financial  Oversight
Panel,   the  Panel's  approved  costs  shall  be  paid  from
deductions from the district's general State aid.
    The Financial Oversight Panel may prepare and  file  with
the  State  Superintendent a proposal for emergency financial
assistance for the school district  and  for  the  operations
budget  of the Panel.  No expenditures shall be authorized by
the State Superintendent until he has approved  the  proposal
of  the  Panel,  either as submitted or in such lesser amount
determined by the State Superintendent.
    The maximum  amount  of  emergency  financial  assistance
which  may  be  allocated  to  any school district under this
Article, including moneys necessary for the operations of the
Panel, shall not exceed $1000  times  the  number  of  pupils
enrolled in the school district during the school year ending
June  30  prior to the date of approval by the State Board of
the petition for emergency financial assistance, as certified
to the local board and the Panel by the State Superintendent.
    The payment of emergency State financial assistance shall
be  subject  to  appropriation  by  the   General   Assembly.
Emergency  State financial assistance allocated and paid to a
school district under this Article may be applied to any fund
or funds from which the local  board  of  education  of  that
district is authorized to make expenditures by law.
    Any   emergency  financial  assistance  proposed  by  the
Financial  Oversight  Panel  and  approved   by   the   State
Superintendent may be paid in its entirety during the initial
year of the Panel's existence or spread in equal or declining
amounts  over  a  period of years not to exceed the period of
the Panel's existence.  All payments  made  from  the  School
District  Emergency  Financial  Assistance  Fund for a school
district shall be required to be repaid, with simple interest
at the rate of 4%, not later  than  the  date  the  Financial
Oversight  Panel  ceases  to exist. The Panel shall establish
and the State Superintendent  shall  approve  the  terms  and
conditions,  including  the  schedule,  of  repayments.   The
schedule  shall  provide  for repayments commencing July 1 of
each year. Repayment shall be incorporated  into  the  annual
budget  of  the school district and may be made from any fund
or funds of the district in which there are moneys available.
When moneys are repaid as provided herein they shall  not  be
made  available  to  the  local  board  for  further  use  as
emergency financial assistance under this Article at any time
thereafter.   All  repayments required to be made by a school
district shall be received by the State Board  and  deposited
in the School District Emergency Financial Assistance Fund.
    In   establishing   the  terms  and  conditions  for  the
repayment obligation of the school district the  Panel  shall
annually determine whether a separate local property tax levy
is  required.   The  board  of any school district with a tax
rate for educational purposes for the prior year of less than
120% of the maximum rate for educational purposes  authorized
by  Section  17-2  shall  provide for a separate tax levy for
emergency financial assistance repayment purposes.  Such  tax
levy shall not be subject to referendum approval.  The amount
of  the  levy  shall be equal to the amount necessary to meet
the  annual  repayment  obligations  of   the   district   as
established  by  the  Panel,  or 20% of the amount levied for
educational purposes for the prior year, whichever  is  less.
However, no district shall be required to levy the tax if the
district's   operating   tax   rate   as   determined   under
subparagraph  (A)(5)(b)  of  Section  18-8 or 18-8.05 exceeds
200% of the district's tax rate for educational purposes  for
the prior year.
(Source: P.A. 88-618, eff. 9-9-94.)

    (105 ILCS 5/1C-2)
    Sec. 1C-2.  Block grants.
    (a)  For   fiscal   year   1999,  and  each  fiscal  year
thereafter, the State  Board  of  Education  shall  award  to
school districts block grants as described in subsections (b)
and  (c).  The  State  Board of Education may adopt rules and
regulations necessary to implement this Section.
    (b)  A Professional  Development  Block  Grant  shall  be
created  by  combining  the existing School Improvement Block
Grant  and  the  REI  Initiative.  These   funds   shall   be
distributed  to  school  districts  based  on  the  number of
full-time  certified  instructional  staff  employed  in  the
district.
    (c)  An Early Childhood Education Block  Grant  shall  be
created   by  combining  the  following  programs:  Preschool
Education,  Parental  Training  and  Prevention   Initiative.
These  funds  shall  be  distributed  to school districts and
other entities on a competitive basis.  Eight percent of this
grant shall be used to fund programs for children  ages  0-3.
From  appropriations made for block grant purposes, the State
Board of Education is authorized to award funds  to  eligible
recipients upon application.  Semiannual installment payments
shall  be  made  and  semiannual expenditure reports shall be
required.
(Source: P.A. 88-555, eff. 7-27-94; 89-397, eff. 8-20-95.)

    (105 ILCS 5/2-3.51) (from Ch. 122, par. 2-3.51)
    Sec. 2-3.51.  Reading Improvement  Block  Grant  Program.
To  improve  the  reading  and  study skills of children from
kindergarten through sixth grade in  school  districts.   The
State  Board  of  Education,  hereinafter referred to as "the
Board", is authorized to administer a fund a School  District
Reading  Improvement  Block  Grant  Program.  As used in this
Section,  "school  district"  shall  include  those   schools
designated as "laboratory schools".
    (a)  The   program  shall  provide  reading  specialists,
teacher aides and other  personnel  to  improve  reading  and
study  skills  of children in public schools.  As part of the
program, the Board shall also make available funds for  books
and  other  printed  materials  which improve the reading and
study  skills  of  the  children.   Funds  for  the   Reading
Improvement  Block  Grant  Program  shall  be  distributed to
school districts on the following basis:  70% of monies shall
be awarded on the prior year's best 3  months  average  daily
attendance  and  30%  shall  be  distributed on the number of
economically disadvantaged (E.C.I.A. Chapter I) pupils in the
district, provided that the State  Board  may  distribute  an
amount  not  to  exceed 2% of the monies appropriated for the
Reading Improvement Block Grant Program for  the  purpose  of
providing teacher training and re-training in the teaching of
reading.   Program  funds  shall  be  distributed  to  school
districts in 2 semi-annual installments, one  payment  on  or
before October 30, and one payment prior to April 30, of each
year.  The State Board shall promulgate rules and regulations
necessary for the implementation of this program.
    (a-5)  Reading  Improvement  Block  Grant  Program  funds
shall be used by school districts in the following manner:
         (1)  to reduce class  size  in  grades  kindergarten
    through  3  for the purpose of providing more intensified
    reading instruction;
         (2)  to extend  the  time  devoted  in  kindergarten
    through  third  grade to intensified reading instruction,
    including phonic instruction, either by  lengthening  the
    school day or lengthening the school year;
         (3)  to  create  transitional  grades  for  students
    needing  intensified  reading  instruction either between
    the first and second grades or  between  the  second  and
    third  grades  in  accordance  with the authority granted
    school districts in Section 10-21.2 of this Code;
         (4)  to  continue  direct  reading  instruction  for
    grades 4 through 6;
         (5)  to establish reading academies in schools  that
    focus  on  the  mechanics  of reading, the application of
    reading skills, and the reading of  rich  literature  and
    that  reflect a commitment of time and resources to these
    functions;
         (6)  to conduct intense  vocabulary,  spelling,  and
    related  writing  enrichment programs that promote better
    understanding of language and words;
         (7)  to  increase  the   availability   of   reading
    specialists and teacher aides for reading; and
         (8)  to  train  and retrain teachers of kindergarten
    through third grade to be proficient in the  teaching  of
    reading, including phonic instruction.
    (a-10)  Reading  Improvement  Block  Grant  Program funds
shall be made available  to  each  eligible  school  district
submitting  a  one-page  application  developed  by the State
Board beginning with the 1998-99 school  year.   Applications
shall  include existing Illinois Goals and Assessment Program
(IGAP) reading scores and the planned use for the funds.   At
the  end of each school year the school district shall report
new  IGAP  results  on  the  same  form.   Each  application,
beginning with the 1998-99 school year, shall be for a 2-year
grant based on initial  year  qualification.   Districts  not
demonstrating performance progress using  IGAP reading scores
as  the  basis  of  measure  based  on  metrics  of  progress
established  by  the  State  Board  shall not be eligible for
funding in the third or  subsequent  years  thereafter  until
such  progress is established.
    (a-15)  The   State   Superintendent   of  Education,  in
cooperation with the school districts  participating  in  the
program,  shall  annually  report  to  the  leadership of the
General Assembly on the results of  the  Reading  Improvement
Block  Grant Program and the progress being made on improving
the reading skills of students in  kindergarten  through  the
sixth grade.
    (b)  (Blank).  Distribution of monies to school districts
shall be made in 2 semi-annual installments, one on or before
October 30, and one payment prior to April 30, of each year.
    From funds distributed for purposes of this Section,  the
Board  is  authorized to approve applications from qualifying
school districts to help meet a district's costs of employing
teacher aides. No school district shall  be  eligible  to  be
paid  under  this  Section for more than one teacher aide for
each 3 certificated teachers employed  by  the  district  for
classroom  teaching  of pupils in kindergarten and grades one
through 6.
    From funds distributed for purposes of this Section,  the
Board  is  authorized to approve applications from qualifying
school districts to help meet a district's cost of  employing
reading  specialists. No school district shall be eligible to
receive payment under this Section for more than one  reading
specialist  for  each  15  certificated  teachers,  or  major
portion  thereof,  employed  by  the  district  for classroom
teaching of pupils in kindergarten and grades one through 6.
    (c)  (Blank). Each person  employed  as  a  teacher  aide
pursuant to this Section must work under the supervision of a
certificated  teacher  and,  as a condition precedent to that
employment, either shall have earned  at  least  30  semester
hours  of college credit or shall have successfully completed
a Teacher Aide Program approved by the Board.
    (d)  Grants under the Reading Improvement  Program  shall
be  awarded  provided  there  is  an  appropriation  for  the
program,  and  funding  levels  for  each  district  shall be
prorated according to the amount of the appropriation.
    (e)  (Blank). District applications for participation  in
this program shall be approved by the Board.
    (f)  (Blank).  Notwithstanding  the  provisions regarding
distribution of monies contained in subsections (a)  and  (b)
of  this  Section,  the Board may distribute an amount not to
exceed  2%  of  the  monies  appropriated  for  the   Reading
Improvement  Program  to qualified recipients for the purpose
of training  teachers  and  other  educational  personnel  to
better  teach reading to the State's elementary and secondary
school students.
(Source: P.A. 86-237; 86-750; 86-1028; 87-280.)

    (105 ILCS 5/2-3.51.5)
    Sec. 2-3.51.5.  School Safety and Educational Improvement
Block Grant Program.  To improve the level of  education  and
safety  of  students  from  kindergarten  through grade 12 in
school districts.  The State Board of Education is authorized
to fund a School Safety  and  Educational  Improvement  Block
Grant Program.
    (1)  The program shall provide funding for school safety,
textbooks  and  software,  teacher  training  and  curriculum
development,  school  improvements,  and remediation programs
under subsection (a) of Section 2-3.64.  A school district or
laboratory school as defined in subsection B of Section  18-8
or  18-8.05   is not required to file an application in order
to receive the categorical funding to which  it  is  entitled
under   this  Section.   Funds  for  the  School  Safety  and
Educational  Improvement  Block  Grant   Program   shall   be
distributed  to school districts and laboratory schools based
on the prior year's best 3 months average  daily  attendance.
The  State  Board  of  Education  shall  promulgate rules and
regulations necessary for the implementation of this program.
    (2)  Distribution of moneys to school districts shall  be
made  in 2 semi-annual installments, one payment on or before
October 30, and one payment prior to April 30, of each fiscal
year.
    (3)  Grants  under  the  School  Safety  and  Educational
Improvement Block Grant Program  shall  be  awarded  provided
there is an appropriation for the program, and funding levels
for  each  district shall be prorated according to the amount
of the appropriation.
(Source: P.A. 89-610, eff. 8-6-96.)

    (105 ILCS 5/2-3.117a new)
    Sec. 2-3.117a. School Technology Revolving Loan Program.
    (a)  The  State  Board  of  Education  is  authorized  to
administer a School Technology Revolving  Loan  Program  from
funds appropriated  from the School Technology Revolving Loan
Fund  for  the  purpose  of  making  the  financing of school
technology   hardware   improvements    affordable.    School
technology  loans shall be made available to school districts
to purchase technology hardware for eligible grade levels  on
a  3-year  rotating  basis:  grades  K-4 in year one and each
third year thereafter, grades 5-8 in year 2  and  each  third
year  thereafter,  grades  9-12 in year 3 and each third year
thereafter.
    The State Board of Education shall determine the interest
rate the loans shall bear which shall not be greater than 50%
of the rate for the most recent date shown  in  the  20  G.O.
Bonds  Index of average municipal bond yields as published in
the most recent edition of The Bond  Buyer, published in  New
York,  New  York.  The repayment period for School Technology
Revolving Loans  shall  not  exceed  3  years.  Participating
school  districts  shall use the loan proceeds for technology
hardware  investments  for  students  and  staff,   including
computer  hardware,  technology networks, related wiring, and
other items defined in rules adopted by the  State  Board  of
Education.   No  school  district  whose  equalized  assessed
valuation per pupil in average daily  attendance  is  at  the
99th  percentile and above for all districts of the same type
shall be eligible to receive a  School  Technology  Revolving
Loan under the provisions of this Section for that year.
    The  State Board of Education shall have the authority to
adopt  all  rules  necessary  for  the   implementation   and
administration   of  the  School  Technology  Revolving  Loan
Program,  including,  but  not  limited  to,  rules  defining
application procedures,  prescribing  a  maximum  amount  per
pupil  that may be requested annually by districts, requiring
appropriate local  commitments  for  technology  investments,
prescribing  a  mechanism  for  disbursing  loan funds in the
event  requests  exceed  available  funds,  and   prescribing
actions  necessary  to  protect  the State's  interest in the
event of default,  foreclosure,  or  noncompliance  with  the
terms and conditions of the loans.
    (b)  There  is  created  in the State treasury the School
Technology Revolving Loan Fund.  The State Board  shall  have
the  authority to make expenditures from the Fund pursuant to
appropriations made for the purposes of this  Section.  There
shall  be deposited into the Fund such amounts, including but
not limited to:
         (1)  Transfers from the School Infrastructure Fund;
         (2)  All receipts, including principal and  interest
    payments, from any loan made from the Fund;
         (3)  All  proceeds  of  assets  of  whatever  nature
    received  by  the  State  Board as a result of default or
    delinquency with respect to loans made from the Fund;
         (4)  Any appropriations, grants, or  gifts  made  to
    the Fund; and
         (5)  Any    income   received   from   interest   on
    investments of money in the Fund.
    (105 ILCS 5/2-3.124 new)
    Sec. 2-3.124.  Liability coverage for certificated school
employees.  Beginning with the 1998-99 school year, the State
Board of Education shall provide or arrange to have  provided
for  each  certificated person who receives a salary or wages
in exchange for performing educational employment  activities
on  behalf  of  a  school  board,  board  of  trustees, joint
agreement  program  board,  cooperative  program  board,   or
similar  governing  body  of a public elementary or secondary
educational unit in Illinois educators liability coverage  in
amounts   no  less  than:   (1)  $1,000,000  per  person  per
occurrence, not to include any civil rights issue or  claims;
(2)  $250,000  per person per occurrence for any civil rights
issue or claims and not to include any other claims; and  (3)
$3,000,000 per occurrence aggregate for all claims.
    The  coverage  provided  by  the  State  Board shall also
include: (1) reimbursement of attorney fees for defense of  a
criminal  proceeding  in  an amount not less than $35,000 per
proceeding; (2) bail bond coverage of not  less  than  $1,000
per  bond;  and  (3) assault-related personal property damage
coverage of not less than $250 per incident.
    The liability coverage required by this Section shall  be
provided  at  no  cost  to the covered persons accepting such
coverage.
    The State Board shall adopt such rules and regulations as
are necessary to implement the provisions of this Section.

    (105 ILCS 5/7-11) (from Ch. 122, par. 7-11)
    Sec.  7-11.   Annexation   of   dissolved   non-operating
districts.  If  any  school  district has become dissolved as
provided in Section 5-32, or if a petition for dissolution is
filed under subsection (b)  of  Section  7-2a,  the  regional
board  of  school trustees shall attach the territory of such
dissolved district to one  or  more  districts  and,  if  the
territory  is  added to 2 or more districts, shall divide the
property of the dissolved district  among  the  districts  to
which  its territory is added, in the manner provided for the
division of property in case of the  organization  of  a  new
district  from a part of another district. The regional board
of school trustees  of  the  region  in  which  the  regional
superintendent  has supervision over the school district that
is dissolved shall have all  power  necessary  to  annex  the
territory  of  the  dissolved  district  as  provided in this
Section, including the power to attach  the  territory  to  a
school   district  under  the  supervision  of  the  regional
superintendent of another educational  service  region.   The
annexation  of  the  territory of a dissolved school district
under  this  Section  shall  entitle  the  school   districts
involved  in  the annexation to payments from the State Board
of Education under subsection (A)(5)(m) of  Section  18-8  or
subsection  (I)  of Section 18-8.05 and under Sections 18-8.2
and 18-8.3  in  the  same  manner  and  to  the  same  extent
authorized  in  the  case  of  other  annexations  under this
Article.  Other provisions of this Article 7  of  The  School
Code  shall  apply to and govern dissolutions and annexations
under this Section and Section 7-2a, except that  it  is  the
intent  of  the General Assembly that in the case of conflict
the provisions of this Section and Section 7-2a shall control
over the other provisions of this Article.
    The regional board of school trustees shall  give  notice
of  a hearing, to be held not less than 50 days nor more than
70 days after a school district is  dissolved  under  Section
5-32  or  a petition is filed under subsection (b) of Section
7-2a, on the disposition of  the  territory  of  such  school
district  by  publishing  a notice thereof at least once each
week for 2 successive weeks in at least one newspaper  having
a  general  circulation  within  the  area  of  the territory
involved. At such  hearing,  the  regional  board  of  school
trustees  shall  hear  evidence  as  to  the school needs and
conditions of the  territory  and  of  the  area  within  and
adjacent  thereto,  and  shall  take  into  consideration the
educational welfare of the pupils of the  territory  and  the
normal high school attendance pattern of the children. In the
case of an elementary school district if all the eighth grade
graduates  of such district customarily attend high school in
the same high school district, the regional board  of  school
trustees  shall,  unless  it  be  impossible  because  of the
restrictions  of  a  special  charter  district,  annex   the
territory  of  the district to a contiguous elementary school
district whose eighth grade graduates customarily attend that
high school, and  that  has  an  elementary  school  building
nearest  to the center of the territory to be annexed, but if
such eighth grade graduates customarily attend more than  one
high  school  the  regional  board  of  school trustees shall
determine the attendance pattern of such graduates and divide
the territory of the district among the contiguous elementary
districts whose graduates attend  the  same  respective  high
schools.
    The  decision of the regional board of school trustees in
such  matter  shall  be  issued  within  10  days  after  the
conclusion of  the  hearing  and  deemed  an  "administrative
decision"  as  defined  in Section 3-101 of the Code of Civil
Procedure and any resident who appears at the hearing or  any
petitioner  may  within  10 days after a copy of the decision
sought to be reviewed was served by registered mail upon  the
party  affected  thereby  file  a  complaint for the judicial
review   of   such   decision   in   accordance   with    the
"Administrative   Review   Law",   and   all  amendments  and
modifications thereof and the rules adopted pursuant thereto.
The commencement of any action for review shall operate as  a
stay  of enforcement, and no further proceedings shall be had
until final disposition of such review. The final decision of
the regional board of school trustees or of  any  court  upon
judicial  review  shall become effective under Section 7-9 in
the case of a petition for dissolution filed under subsection
(b) of Section  7-2a,  and  a  final  decision  shall  become
effective immediately following the date no further appeal is
allowable  in  the case of a district dissolved under Section
5-32.
    Notwithstanding the foregoing provisions of this  Section
or  any  other  provision  of law to the contrary, the school
board of the Mt. Morris  School  District  is  authorized  to
donate  to  the  City  of  Mount  Morris, Illinois the school
building and other real property used as a school site by the
Mt. Morris School District at the time of its dissolution, by
appropriate resolution adopted by the  school  board  of  the
district  prior  to the dissolution of the district; and upon
the adoption of a resolution by the school board donating the
school building and school site to the City of Mount  Morris,
Illinois as authorized by this Section, the regional board of
school trustees or other school officials holding legal title
to  the  school  building  and  school  site so donated shall
immediately convey the  same  to  the  City  of  Mt.  Morris,
Illinois.
(Source: P.A. 88-386.)

    (105 ILCS 5/10-20.9a) (from Ch. 122, par. 10-20.9a)
    Sec. 10-20.9a.  Final Grade; Promotion.
    (a)  Teachers   shall  administer  the  approved  marking
system or other approved means of evaluating pupil  progress.
The  teacher  shall  maintain the responsibility and right to
determine grades and other evaluations of students within the
grading policies of  the  district  based  upon  his  or  her
professional  judgment of available criteria pertinent to any
given subject area  or  activity  for  which  he  or  she  is
responsible.  District policy shall provide the procedure and
reasons  by  and  for  which a grade may be changed; provided
that  no  grade  or  evaluation  shall  be  changed   without
notification to the teacher concerning the nature and reasons
for  such change. If such a change is made, the person making
the change shall assume such responsibility  for  determining
the grade or evaluation, and shall initial such change.
    (b)  School  districts  shall not promote are discouraged
from promoting students to the next higher grade level  based
upon  age  or  any  other  social  reasons not related to the
academic performance of the students.  On or before September
1, 1998, school boards shall may adopt and enforce  a  policy
such  policies  on promotion as they deem necessary to ensure
that students meet local goals and objectives and can perform
at the expected grade level prior to promotion. Decisions  to
promote  or  retain students in any classes shall be based on
successful  completion   of   the   curriculum,   attendance,
performance  based  on  Illinois Goals and Assessment Program
tests, the Iowa Test of Basic Skills, or other testing or any
other criteria established by  the  school  board.   Students
determined by the local district to not qualify for promotion
to   the   next  higher  grade  shall  be  provided  remedial
assistance, which may include, but shall not be limited to, a
summer bridge program of no  less  than  90  hours,  tutorial
sessions,   increased  or  concentrated  instructional  time,
modifications to instructional materials,  and  retention  in
grade.
(Source: P.A. 89-610, eff. 8-6-96.)

    (105 ILCS 5/10-20.30 new)
    Sec.  10-20.30.  No  pass-no play policy.  Beginning with
the 1998-99 school year, the  school  board  of  each  school
district  that  maintains  any  of  grades 9 through 12 shall
establish, implement, and enforce a  uniform  and  consistent
policy under which a student in any of those grades who fails
to  maintain  a  specified  minimum  grade point average or a
specified minimum grade in each course in which  the  student
is  enrolled  or both is suspended from further participation
in  any  school-sponsored  or  school-supported  athletic  or
extracurricular activities for a specified period or until  a
specified  minimum  grade  point  average or minimum grade or
both are earned by the  student.   Each  school  board  shall
adopt a policy as required by this Section not later than one
year  after the effective date of this amendatory Act of 1997
and shall concurrently file a copy of that  policy  with  the
State  Board  of  Education.   After  the  policy has been in
effect for one year, the school board  shall  file  a  report
with  the  State  Board of Education setting forth the number
and length of suspensions imposed under the policy during the
period covered by the report. If the school board already has
a policy that is consistent with  the  requirements  of  this
Section  in  effect  on the effective date of this amendatory
Act of 1997, it shall file a copy of  that  policy  with  the
State  Board of Education within 90  days after the effective
date of this amendatory Act and shall file the annual  report
required under this Section 12 months thereafter.

    (105 ILCS 5/10-22.6) (from Ch. 122, par. 10-22.6)
    Sec.  10-22.6.  Suspension or expulsion of pupils; school
searches.
    (a)  To expel pupils  guilty  of  gross  disobedience  or
misconduct,  and  no  action  shall lie against them for such
expulsion. Expulsion shall take place only after the  parents
have  been  requested to appear at a meeting of the board, or
with a hearing officer appointed  by  it,  to  discuss  their
child's behavior. Such request shall be made by registered or
certified mail and shall state the time, place and purpose of
the meeting. The board, or a hearing officer appointed by it,
at such meeting shall state the reasons for dismissal and the
date  on  which  the  expulsion  is to become effective. If a
hearing officer is appointed by the board he shall report  to
the  board  a  written  summary  of the evidence heard at the
meeting and the board may take  such  action  thereon  as  it
finds appropriate.
    (b)  To   suspend  or  by  regulation  to  authorize  the
superintendent of the district or  the  principal,  assistant
principal,  or  dean  of  students  of  any school to suspend
pupils guilty of gross  disobedience  or  misconduct,  or  to
suspend  pupils guilty of gross disobedience or misconduct on
the school bus from riding the  school  bus,  and  no  action
shall  lie against them for such suspension. The board may by
regulation authorize the superintendent of  the  district  or
the  principal,  assistant  principal, or dean of students of
any school to suspend pupils guilty of such acts for a period
not to exceed 10 school days. If a pupil is suspended due  to
gross  disobedience  or misconduct on a school bus, the board
may suspend the pupil in excess of 10 school days for  safety
reasons.  Any suspension shall be reported immediately to the
parents or guardian of such pupil along with a full statement
of  the  reasons  for  such  suspension and a notice of their
right to a review, a copy of which  shall  be  given  to  the
school  board.  Upon  request  of the parents or guardian the
school board or a  hearing  officer  appointed  by  it  shall
review  such  action  of  the  superintendent  or  principal,
assistant principal, or dean of students.  At such review the
parents  or  guardian of the pupil may appear and discuss the
suspension with the  board  or  its  hearing  officer.  If  a
hearing  officer is appointed by the board he shall report to
the board a written summary of  the  evidence  heard  at  the
meeting.  After  its  hearing  or upon receipt of the written
report of its hearing officer, the board may take such action
as it finds appropriate.
    (c)  The Department of Human Services shall be invited to
send a representative to  consult  with  the  board  at  such
meeting whenever there is evidence that mental illness may be
the cause for expulsion or suspension.
    (d)  The  board may expel a student for a definite period
of time not to exceed 2 calendar years, as  determined  on  a
case  by  case  basis.    A student who is determined to have
brought a weapon to school, any school-sponsored activity  or
event,  or  any  activity  or  event which bears a reasonable
relationship to school shall be expelled for a period of  not
less  than  one year, except that the expulsion period may be
modified by the board on a case by case basis.  For  purposes
of  this  Section,  the  term "weapon" means possession, use,
control or transfer of any object which may be used to  cause
bodily harm, including but not limited to a weapon as defined
by  Section  921  of Title 18, United States Code, firearm as
defined in Section 1.1 of the Firearm  Owners  Identification
Act, use of weapon as defined in Section 24-1 of the Criminal
Code,   knives,   guns,  firearms,  rifles,  shotguns,  brass
knuckles, billy clubs, or "look-alikes" thereof.  Such  items
as baseball bats, pipes, bottles, locks, sticks, pencils, and
pens  may  be  considered  weapons if used or attempted to be
used to cause bodily harm.  Expulsion or suspension shall  be
construed in a manner consistent with the Federal Individuals
with  Disabilities Education Act. A student who is subject to
suspension or expulsion as provided in this  Section  may  be
eligible  for  a transfer to an alternative school program in
accordance  with  Article  13A  of  the  School  Code.    The
provisions  of  this  subsection  (d)  apply  in  all  school
districts,  including special charter districts and districts
organized under Article 34.
    (e)  To maintain  order  and  security  in  the  schools,
school  authorities  may  inspect and search places and areas
such as  lockers,  desks,  parking  lots,  and  other  school
property  and equipment owned or controlled by the school, as
well as personal effects left in those places  and  areas  by
students,  without  notice  to or the consent of the student,
and without a search warrant.  As a matter of public  policy,
the  General  Assembly finds that students have no reasonable
expectation of privacy in these places and areas or in  their
personal  effects  left  in  these  places and areas.  School
authorities may request the  assistance  of  law  enforcement
officials  for  the  purpose  of  conducting  inspections and
searches of lockers, desks, parking lots,  and  other  school
property  and equipment owned or controlled by the school for
illegal  drugs,  weapons,  or  other  illegal  or   dangerous
substances or materials, including searches conducted through
the  use of specially trained dogs.  If a search conducted in
accordance with  this  Section  produces  evidence  that  the
student  has  violated  or is violating either the law, local
ordinance, or the school's policies or rules,  such  evidence
may  be seized by school authorities, and disciplinary action
may be taken.  School authorities may  also  turn  over  such
evidence  to  law enforcement authorities.  The provisions of
this subsection (e) apply in all school districts,  including
special  charter  districts  and  districts  organized  under
Article 34.
    (f)  Suspension  or  expulsion  may include suspension or
expulsion  from  school  and  all  school  activities  and  a
prohibition from being present on school grounds.
(Source: P.A.  89-371,  eff.  1-1-96;  89-507,  eff.  7-1-97;
89-610, eff. 8-6-96; P.A. 90-14, eff. 7-1-97.)

    (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
    Sec.  10-22.20.  Classes  for  adults  and  youths  whose
schooling   has   been   interrupted;  Conditions  for  State
reimbursement; Use of child care facilities.
    (a)  To establish special classes for the instruction (1)
of persons of age 21 years or over, and (2) of  persons  less
than age 21 and not otherwise in attendance in public school,
for  the  purpose  of  providing adults in the community, and
youths  whose  schooling  has  been  interrupted,  with  such
additional basic education, vocational  skill  training,  and
other  instruction  as  may  be  necessary  to increase their
qualifications for employment or other means of  self-support
and  their ability to meet their responsibilities as citizens
including  courses  of  instruction  regularly  accepted  for
graduation  from  elementary  or   high   schools   and   for
Americanization  and  General  Educational Development Review
classes.
    The board  shall  pay  the  necessary  expenses  of  such
classes  out of school funds of the district, including costs
of student transportation and such  facilities  or  provision
for  child-care  as  may  be necessary in the judgment of the
board  to  permit  maximum  utilization  of  the  courses  by
students with  children,  and  other  special  needs  of  the
students  directly related to such instruction.  The expenses
thus incurred shall be subject  to  State  reimbursement,  as
provided  in  this  Section.   The  board  may make a tuition
charge for persons taking instruction who are not subject  to
State  reimbursement,  such  tuition charge not to exceed the
per capita cost of such classes.
    The cost of such instruction,  including  the  additional
expenses   herein  authorized,  incurred  for  recipients  of
financial aid under the Illinois  Public  Aid  Code,  or  for
persons   for  whom  education  and  training  aid  has  been
authorized under Section 9-8 of that Code, shall  be  assumed
in  its  entirety from funds appropriated by the State to the
State Board of Education.
    (b)  The  State  Board  of  Education  and  the  Illinois
Community  College  Board  shall  annually  enter   into   an
interagency   agreement   to  implement  this  Section.   The
interagency agreement shall establish the standards  for  the
courses  of  instruction  reimbursed under this Section.  The
State Board of Education shall supervise  the  administration
of   the  programs.   The  State  Board  of  Education  shall
determine  the  cost  of  instruction  in   accordance   with
standards jointly established by the State Board of Education
and  the Illinois Community College Board as set forth in the
interagency agreement,  including  therein  other  incidental
costs as herein authorized, which shall serve as the basis of
State  reimbursement  in  accordance  with  the provisions of
this  Section.  In  the  approval   of   programs   and   the
determination  of the cost of instruction, the State Board of
Education  shall  provide  for  the  maximum  utilization  of
federal funds for such programs.  The  interagency  agreement
shall also include:
         (1)  the development of an index of need for program
    planning  and  for area funding allocations as defined by
    the State Board of Education;
         (2)  the   method   for   calculating    hours    of
    instruction,  as defined by the State Board of Education,
    claimable for reimbursement and a method to phase in  the
    calculation  and  for adjusting the calculations in cases
    where the services of a program are  interrupted  due  to
    circumstances beyond the control of the program provider;
         (3)  a   plan  for  the  reallocation  of  funds  to
    increase the  amount  allocated  for  grants  based  upon
    program performance as set forth in subsection (d) below;
    and
         (4)  the  development  of  standards for determining
    grants based upon performance as set forth in  subsection
    (d)  below and a plan for the phased-in implementation of
    those standards.
    For  instruction  provided  by   school   districts   and
community  college  districts  beginning  July  1,  1996  and
thereafter,  reimbursement  provided  by  the  State Board of
Education for classes authorized by  this  Section  shall  be
provided  pursuant  to the terms of the interagency agreement
from funds appropriated for the  reimbursement  criteria  set
forth in subsection (c) below.
    (c)  Upon   the   annual   approval  of  the  interagency
agreement,  reimbursement  shall  be   first   provided   for
transportation,  child care services, and other special needs
of the students directly related to instruction and then from
the funds remaining an amount equal to  the  product  of  the
total  credit  hours  or units of instruction approved by the
State Board of Education, multiplied by the following:
         (1)  For  adult   basic   education,   the   maximum
    reimbursement  per credit hour or per unit of instruction
    shall be  equal  to  the  general  state  aid  per  pupil
    foundation  level established in subsections 5(a) through
    5(d)  of  Section  18-8  or  subsection  (B)  of  Section
    18-8.05, divided by 60;
         (2)  The maximum reimbursement per  credit  hour  or
    per  unit  of instruction in subparagraph (1) above shall
    be weighted for students enrolled in classes  defined  as
    vocational  skills  and  approved  by  the State Board of
    Education by 1.25;
         (3)  The maximum reimbursement per  credit  hour  or
    per  unit  of instruction in subparagraph (1) above shall
    be multiplied by .90 for  students  enrolled  in  classes
    defined   as   adult  secondary  education  programs  and
    approved by the State Board of Education;
         (4)  For community  college  districts  the  maximum
    reimbursement  per credit hour in subparagraphs (1), (2),
    and (3)  above  shall  be  reduced  by  the  Adult  Basic
    Education/Adult  Secondary  Education/English As A Second
    Language credit hour grant  rate  prescribed  in  Section
    2-16.02 of the Public Community College Act, as pro-rated
    to the appropriation level; and
         (5)  Programs receiving funds under the formula that
    was  in  effect  during  the 1994-1995 program year which
    continue to be approved and which generate at  least  80%
    of  the  hours  claimable  in  1994-95, or in the case of
    programs not approved in 1994-95  at  least  80%  of  the
    hours  claimable  in  1995-96,  shall  have  funding  for
    subsequent  years  based upon 100% of the 1995-96 formula
    funding level for 1996-97, 90%  of  the  1995-96  formula
    funding  level  for  1997-98,  80% of the 1995-96 formula
    funding level for 1998-99, and 70% of the 1995-96 formula
    funding level for 1999-2000.  For  any  approved  program
    which  generates  less than 80% of the claimable hours in
    its base year, the level  of  funding  pursuant  to  this
    paragraph  shall be reduced proportionately.  Funding for
    program years after 1999-2000 shall be  pursuant  to  the
    interagency agreement.
    (d)  Upon   the   annual   approval  of  the  interagency
agreement, the State Board of Education shall provide  grants
to  eligible  programs for supplemental activities to improve
or expand services under the Adult Education Act.    Eligible
programs  shall be determined based upon performance outcomes
of students in the programs as set forth in  the  interagency
agreement.
    (e)  Reimbursement  under  this  Section shall not exceed
the actual costs of the approved program.
    If  the  amount  appropriated  to  the  State  Board   of
Education  for  reimbursement under this Section is less than
the amount required under this Act, the  apportionment  shall
be proportionately reduced.
    School  districts  and  community  college  districts may
assess students up to $3.00  per  credit  hour,  for  classes
other than Adult Basic Education level programs, if needed to
meet program costs.
    (f)  An  education  plan  shall  be  established for each
adult or youth whose schooling has been interrupted  and  who
is participating in the instructional programs provided under
this Section.
    Each  school  board  and  community college shall keep an
accurate and detailed account of the students assigned to and
receiving instruction under this Section who are  subject  to
State  reimbursement  and  shall  submit  reports of services
provided commencing with fiscal year 1997 as required in  the
interagency agreement.
    For  classes authorized under this Section, a credit hour
or unit of  instruction  is  equal  to  15  hours  of  direct
instruction for students enrolled in approved adult education
programs  at  midterm  and  making  satisfactory progress, in
accordance with standards jointly established  by  the  State
Board  of  Education and the Illinois Community College Board
as set forth in the interagency agreement.
    (g)  Upon proof submitted to the Illinois  Department  of
Human  Services  of the payment of all claims submitted under
this Section, that Department shall apply for  federal  funds
made  available  therefor  and  any federal funds so received
shall be paid into the General  Revenue  Fund  in  the  State
Treasury.
    School  districts or community colleges providing classes
under this Section shall submit  applications  to  the  State
Board  of  Education  for  preapproval in accordance with the
standards jointly established by the State Board of Education
and the Illinois Community College Board as set forth in  the
interagency  agreement.   Payments shall be made by the State
Board of Education based  upon  approved  programs.   Interim
expenditure  reports  may  be  required by the State Board of
Education as set forth in the interagency agreement.    Final
claims for the school year shall be submitted to the regional
superintendents   for  transmittal  to  the  State  Board  of
Education as set forth in the interagency  agreement.   Final
adjusted payments shall be made by September 30.
    If  a school district or community college district fails
to provide, or is providing  unsatisfactory  or  insufficient
classes  under this Section, the State Board of Education may
enter into agreements with public or private  educational  or
other   agencies  other  than  the  public  schools  for  the
establishment of such classes.
    (h)  If a school district or community  college  district
establishes   child-care   facilities  for  the  children  of
participants in classes established under  this  Section,  it
may  extend  the use of these facilities to students who have
obtained employment and to other  persons  in  the  community
whose  children require care and supervision while the parent
or other person in charge of  the  children  is  employed  or
otherwise absent from the home during all or part of the day.
It may make the facilities available before and after as well
as  during  regular  school hours to school age and preschool
age children who may benefit thereby, including children  who
require  care  and  supervision  pending  the return of their
parent  or  other  person  in  charge  of  their  care   from
employment or other activity requiring absence from the home.
    The  State  Board of Education shall pay to the board the
cost of care in  the  facilities  for  any  child  who  is  a
recipient  of  financial  aid  under  The Illinois Public Aid
Code.
    The board may charge for care of  children  for  whom  it
cannot  make claim under the provisions of this Section.  The
charge shall not exceed per capita cost, and  to  the  extent
feasible,  shall  be  fixed  at  a  level  which  will permit
utilization by employed parents of low  or  moderate  income.
It  may  also  permit  any  other State or local governmental
agency or private  agency  providing  care  for  children  to
purchase care.
    After  July  1,  1970  when  the  provisions  of  Section
10-20.20  become  operative  in  the  district, children in a
child-care facility shall be transferred to the  kindergarten
established under that Section for such portion of the day as
may  be  required  for the kindergarten program, and only the
prorated costs of care and training provided  in  the  Center
for  the  remaining  period  shall be charged to the Illinois
Department of Human Services or  other  persons  or  agencies
paying for such care.
    (i)  The  provisions  of this Section shall also apply to
school districts having a population exceeding 500,000.
(Source: P.A. 89-507,  eff.  7-1-97;  89-524,  eff.  7-19-96;
revised 8-15-96; 90-14, eff. 7-1-97.)

    (105 ILCS 5/10-22.23) (from Ch. 122, par. 10-22.23)
    Sec.  10-22.23.   School  Nurse.   To employ a registered
professional nurse and define the duties of the school  nurse
within the guidelines of rules and regulations promulgated by
the  State  Board  of  Education.   Any  school  nurse  first
employed  on  or  after  July  1,  1976, whose duties require
teaching  or  the  exercise  of  instructional  judgment   or
educational  evaluation of pupils, must be certificated under
Section 21-25  of  this  Act.  School  districts  may  employ
non-certificated  registered  professional  nurses to perform
professional nursing services.
(Source: P.A. 81-1508.)

    (105 ILCS 5/10-22.34c new)
    Sec. 10-22.34c. Third party  non-instructional  services.
Notwithstanding  any other law of this State, nothing in this
Code prevents a board  of  education  from  entering  into  a
contract  with  a  third party for non-instructional services
currently performed by any employee or bargaining unit member
or  from  laying  off  those  educational  support  personnel
employees  upon  30  days  written  notice  to  the  affected
employees.

    (105 ILCS 5/10-23.5) (from Ch. 122, par. 10-23.5)
    Sec. 10-23.5.  Educational support  personnel  employees.
To  employ such educational support personnel employees as it
deems  advisable  and  to  define  their  employment  duties;
provided that residency within any school district shall  not
be   considered   in   determining   the  employment  or  the
compensation of any such  employee,  or  whether  to  retain,
promote, assign or transfer such employee.  If an educational
support  personnel  employee  is  removed  or  dismissed as a
result of a decision of the  school  board  to  decrease  the
number of educational support personnel employees employed by
the   board   or  to  discontinue  some  particular  type  of
educational support service, written notice shall  be  mailed
to  the  employee  and  also  given  the  employee  either by
certified mail, return receipt requested or personal delivery
with receipt at least 30  60  days  before  the  employee  is
removed  or dismissed end of the school term, together with a
statement of honorable dismissal  and  the  reason  therefor.
The  employee  with  the shorter length of continuing service
with  the  district,  within  the  respective   category   of
position,  shall  be  dismissed  first  unless an alternative
method  of  determining  the   sequence   of   dismissal   is
established  in a collective bargaining agreement or contract
between the board and  any  exclusive  bargaining  agent  and
except  that this provision shall not impair the operation of
any affirmative action program in the district, regardless of
whether it exists by operation of law or is  conducted  on  a
voluntary basis by the board.  If the board has any vacancies
for  the  following  school  term or within one calendar year
from  the  beginning  of  the  following  school  term,   the
positions   thereby  becoming  available  within  a  specific
category of position shall be tendered to  the  employees  so
removed  or  dismissed from that category of position, so far
as they are qualified to hold  such  positions.   Each  board
shall,   in   consultation   with   any   exclusive  employee
representative or bargaining agent,  each  year  establish  a
list,   categorized  by  positions,  showing  the  length  of
continuing service of  each  full  time  educational  support
personnel   employee  who  is  qualified  to  hold  any  such
positions, unless an  alternative  method  of  determining  a
sequence  of dismissal is established as provided for in this
Section, in which case a list shall  be  made  in  accordance
with  the  alternative  method.   Copies of the list shall be
distributed  to  the  exclusive  employee  representative  or
bargaining agent on or before February 1 of each year.  Where
an educational support personnel employee is dismissed by the
board as a result of a decrease in the number of employees or
the discontinuance of the employee's job, the employee  shall
be  paid  all  earned  compensation  on  or  before the third
business day following his or her last day of employment.
    The provisions of this amendatory Act of 1986 relating to
residency within any  school  district  shall  not  apply  to
cities having a population exceeding 500,000 inhabitants.
(Source: P.A. 89-618, eff. 8-9-96.)

    (105 ILCS 5/10-23.8) (from Ch. 122, par. 10-23.8)
    Sec.  10-23.8.  Superintendent contracts under multi-year
contract. After the effective date of this amendatory Act  of
1997  and  the  expiration  of  contracts  in  effect  on the
effective date of this amendatory Act, school  districts  may
only To employ a superintendent under either a contract for a
period    not    exceeding   one   year   or   a   multi-year
performance-based contract  for  a  period  not  exceeding  5
years.  No  such contract can be offered or accepted for less
than or more than three years, except for a person serving as
superintendent for the first time in Illinois.  In such case,
the initial contract shall be for a  two  year  period.  Such
contract  may be discontinued at any time by mutual agreement
of the  contracting  parties,  or  may  be  extended  for  an
additional 3 years at the end of any year.
    Performance-based  contracts  shall  be linked to student
performance and academic improvement within  the  schools  of
the   districts.   No  performance-based  contract  shall  be
extended or rolled-over prior  to  its  scheduled  expiration
unless all the performance and improvement goals contained in
the  contract have been met.  Each performance-based contract
shall include the goals and indicators of student performance
and academic improvement determined and  used  by  the  local
school  board to measure the performance and effectiveness of
the superintendent and such other information  as  the  local
school board may determine.
    The  contract  year  is July 1 through the following June
30, unless  the  contract  specifically  provides  otherwise.
Notice  of  intent not to renew the contract must be given by
the board or by the superintendent by April 1 of the year  in
which  the contract expires, unless the contract specifically
provides otherwise.  Failure  to  do  so  will  automatically
extend  the contract for 1 additional year. The provisions of
this  paragraph  shall  not  apply  to  a  district  under  a
Financial  Oversight  Panel  pursuant  to  Section  1A-8  for
violating a financial plan.
    Notice of intent not to renew a contract when given by  a
board  must  be  in  writing,  stating  the  specific  reason
therefor.   Within  10  days  after receipt of such notice of
intent not  to  renew  a  contract,  the  superintendent  may
request  a  closed  session hearing on the dismissal.  At the
hearing the superintendent has the  privilege  of  presenting
evidence,   witnesses   and   defenses  on  the  grounds  for
dismissal. The provisions of this paragraph shall  not  apply
to  a  district under a Financial Oversight Panel pursuant to
Section 1A-8 for violating a financial plan.
    By accepting the terms  of  a  multi-year  contract,  the
superintendent  waives  all  rights  granted him or her under
Sections 24-11 through 24-16 of this Act for the duration  of
his or her employment as superintendent in the district.
(Source: P.A. 89-572, eff. 7-30-96.)

    (105 ILCS 5/10-23.8a) (from Ch. 122, par. 10-23.8a)
    Sec.   10-23.8a.  Principal   and   other   administrator
contracts under multi-year contract. After the effective date
of  this  amendatory  Act  of  1997  and  the  expiration  of
contracts  in effect on the effective date of this amendatory
Act, school districts may only To employ principals and other
school administrators under either a contract  for  a  period
not  to  exceed  one  year  or a principal under a multi-year
performance-based contract for  a  period  not  to  exceed  5
years.  No  such contract can be offered or accepted for less
than or more than 3 years, except for  a  person  serving  as
principal  for  the first time in Illinois. In such case, the
initial contract shall be for a 2 year period. Such  contract
may  be  discontinued  at any time by mutual agreement of the
contracting parties, or may be extended for an  additional  3
years at the end of any year.
    Performance-based  contracts  shall  be linked to student
performance and  academic  improvement  attributable  to  the
responsibilities    and    duties   of   the   principal   or
administrator.   No  performance-based  contract   shall   be
extended  or  rolled-over  prior  to its scheduled expiration
unless all the performance and improvement goals contained in
the contract have been met.  Each performance-based  contract
shall include the goals and indicators of student performance
and  academic  improvement  determined  and used by the local
school board to measure the performance and effectiveness  of
the   principal   or   other  administrator  and  such  other
information  as  the  local  school  board   may   determine.
           The  contract year is July 1 through the following
June 30, unless the contract specifically provides otherwise.
Notice of intent not to renew the contract must be  given  by
the  board  or  by  the principal at least 90 days before the
contract expires. Failure to do so will automatically  extend
the  contract  for  1 additional year. If offered by a school
board, each individual principal shall  have  the  option  to
accept  or  refuse  a  multi-year contract. The provisions of
this  paragraph  shall  not  apply  to  a  district  under  a
Financial  Oversight  Panel  pursuant  to  Section  1A-8  for
violating a financial plan.
    By accepting the terms  of  a  multi-year  contract,  the
principal  or  administrator waives all rights granted him or
her under Sections 24-11 through 24-16 of this  Act  for  the
duration  of  his  or  her  employment  as  a principal or an
administrator in the district.
(Source: P.A. 89-572, eff. 7-30-96.)

    (105 ILCS 5/17-1.5 new)
    Sec. 17-1.5.  Limitation of administrative costs.
    (a)  It is the  purpose  of  this  Section  to  establish
limitations  on  the growth of administrative expenditures in
order to maximize the proportion of school district resources
available   for   the   instructional    program,    building
maintenance,  and  safety  services  for the students of each
district.
    (b)  Definitions.  For the purposes of this Section:
    "Administrative    expenditures"    mean    the    annual
expenditures of school  districts  properly  attributable  to
expenditure functions defined by the rules of the State Board
of  Education  as:  2310  (Board of Education Services); 2320
(Executive Administration  Services);    2330  (Special  Area
Administration  Services);  2490  (Other  Support  Services -
School Administration); 2510 (Direction of  Business  Support
Services);  2520 (Fiscal Services); 2570 (Internal Services);
2600  (Total  Support   Services   -   Central);    and   all
expenditures  properly  attributable  for  the  Service  Area
Direction  of  functions  2540 (Operations and Maintenance of
Plant Services), 2550 (Pupil  Transportation  Services),  and
2560 (Food Services).
    "Instructional expenditures" mean the annual expenditures
of  school  districts  properly  attributable  to expenditure
functions  defined  by  the  rules  of  the  State  Board  of
Education  as:  1100  (Regular   Programs);   1200   (Special
Education   Programs);  1250  (Educational  Deprived/Remedial
Programs); 1300 (Adult/Continuing Education  Programs);  1400
(Vocational  Programs); 1500 (Interscholastic Programs); 1600
(Summer School  Programs);  1650  (Gifted    Programs);  1800
(Bilingual  Programs);  and  1900  (Truants'  Alternative and
Optional Programs).
    "School district" means all  school  districts  having  a
population of less than 500,000.
    (c)  For  the  1998-99  school  year and each school year
thereafter, each school district  shall  undertake  budgetary
and  expenditure  control  actions  so  that  the increase in
administrative expenditures for that  school  year  over  the
prior  school  year  do  not  exceed  the lesser of 5% or the
percentage increase in instructional  expenditures  for  that
school  year  over  the  prior school year.  School districts
with  administrative  expenditures  per  pupil  in  the  25th
percentile and below for all districts of the same  type,  as
defined  by  the  State  Board  of  Education,  may waive the
limitation imposed under this Section for any year  with  the
affirmative vote of at least two-thirds of the members of the
school board of the district.
    (d)  School  districts shall file with the State Board of
Education by October 15, 1998  and    by  each  October  15th
thereafter  a  one-page  report  that  lists  (i)  the actual
administrative  expenditures  and  the  actual  instructional
expenditures for the prior year from the  district's  audited
Annual    Financial    Report,   and   (ii)   the   projected
administrative expenditures and the  projected  instructional
expenditures  for the current year from the budget adopted by
the school board pursuant to Section 17-1 of this  Code.   If
the report and information required under this subsection (d)
is not provided by the school district in a timely manner, or
is   initially   or  subsequently  determined  by  the  State
Superintendent of Education to be incomplete  or  inaccurate,
the State Superintendent shall notify the district in writing
of reporting deficiencies.  The school district shall, within
60  days  of  the  notice, address the reporting deficiencies
identified.  If the State Superintendent does not  receive  a
satisfactory  response to these reporting deficiencies within
these 60 days, the next payment of general State aid due  the
district  under Section 18-8 of this Code, and all subsequent
payments, may be withheld until the  deficiencies  have  been
addressed.
    (e)  If the State Superintendent determines that a school
district   has  failed  to  comply  with  the  administrative
expenditure limitation imposed  in  subsection  (c)  of  this
Section  by  adopting a budget in violation of the limitation
or by having actual administrative expenditures for the prior
year in excess of the limitation,  the  State  Superintendent
shall  notify  the  district  of the violation and direct the
district  to  undertake  corrective  action  to   bring   the
district's  budget  into  compliance  with the administrative
expenditure limitation.  The district shall, within  60  days
of  the  notice,  provide  adequate  assurance  to  the State
Superintendent that appropriate corrective actions have  been
or  will be taken.  If the district fails to provide adequate
assurance or fails  to  undertake  the  necessary  corrective
actions, the State Superintendent may withhold all subsequent
payments  of general State aid due the district under Section
18-8 of this Code until the  assurance  is  provided  or  the
corrective actions taken.
    (f)  The  State  Superintendent shall publish a list each
year of the school  districts  that  violate  the  limitation
imposed  by  subsection (c) of this Section.  The State Board
of Education may recommend to the General  Assembly  and  the
Governor  any  additional  sanctions or remedial actions that
they determine necessary to  deter  non-compliance  with  the
limitation.

    (105 ILCS 5/18-4.3) (from Ch. 122, par. 18-4.3)
    Sec.  18-4.3.   Summer  school  grants.   Grants shall be
determined for pupil attendance in summer  schools  conducted
under Sections 10-22.33A and 34-18 and approved under Section
2-3.25 in the following manner.
    The  amount  of  grant  for each accredited summer school
attendance pupil shall be  obtained  by  dividing  the  total
amount of apportionments determined under subsections (1) and
(2)  of  Section 18-8 or Section 18-8.05 by the actual number
of  pupils  in  average  daily  attendance  used   for   such
apportionments.    The   number  of  credited  summer  school
attendance pupils shall be determined (a) by  counting  clock
hours  of  class  instruction  by pupils enrolled in grades 1
through 12 in approved courses conducted at  least  60  clock
hours in summer sessions; (b) by dividing such total of clock
hours  of  class instruction by 4 to produce days of credited
pupil attendance; (c) by dividing such days of credited pupil
attendance by the actual number of days in the  regular  term
as  used  in  computation  in  the  general  apportionment in
Section 18-8; and (d) by multiplying by 1.25.
    The amount of the  grant  for  a  summer  school  program
approved   by  the  State  Superintendent  of  Education  for
children with disabilities, as defined  in  Sections  14-1.02
through  14-1.07, shall be determined in the manner contained
above except that average daily membership shall be  utilized
in lieu of average daily attendance.
    In  the  case  of an apportionment based on summer school
attendance or membership pupils, the claim therefor shall  be
presented  as a separate claim for the particular school year
in  which such summer school  session  ends.   On  or  before
October  15  of each year the superintendent of each eligible
school district shall certify to the regional  superintendent
the  claim of the district for the summer session just ended.
Failure on the part of the school board to so  certify  shall
constitute  a  forfeiture  of its right to such payment.  The
regional  superintendent   shall   certify   to   the   State
Superintendent  of  Education  no  later  than November 1 the
regional report of  claims  for  summer  school.   The  State
Superintendent of Education shall transmit to the Comptroller
no later than December 15th of each year vouchers for payment
of amounts due school districts for summer school.  The State
Superintendent  of  Education shall direct the Comptroller to
draw his warrants for payments thereof by  the  30th  day  of
December.   If the money appropriated by the General Assembly
for  such  purpose  for any year is insufficient, it shall be
apportioned on the basis of claims approved.
    However, notwithstanding the  foregoing  provisions,  for
each  fiscal  year  the  money  appropriated  by  the General
Assembly for the purposes of this Section shall only be  used
for  grants  for  approved  summer  school programs for those
children  with  disabilities  served  pursuant  to   Sections
14-7.02 and 14-7.02a of the School Code.
(Source:   P.A.  88-9;  88-641,  eff.  9-9-94;  89-397,  eff.
8-20-95.)

    (105 ILCS 5/18-7) (from Ch. 122, par. 18-7)
    Sec. 18-7. Payments for  benefit  of  teacher  retirement
systems.
    (a)  In  each  fiscal  year through fiscal year 1998, the
State Board of  Education  shall  distribute  to  the  Public
School  Teachers'  Pension and Retirement Fund of Chicago the
sum, if any, appropriated  for  that  fiscal  year  from  the
Common School Fund for the benefit of the Retirement Fund, in
the  manner  provided  in  this Section, the Illinois Pension
Code, the State Finance Act, and other applicable  provisions
of  law.   In  making  this  distribution, the State Board of
Education shall present vouchers to the State Comptroller  on
the  10th  and  20th  days of each month beginning in August.
Each  payment  shall  equal  1/24  of   the   annual   amount
appropriated  in the months of August through May and 1/12 of
the annual amount appropriated in June.
    Beginning in fiscal year 1999, the State contributions to
the Public School Teachers' Pension and  Retirement  Fund  of
Chicago  shall  be appropriated directly to the Fund and paid
in vouchers submitted by the board of trustees of  the  Fund.
Vouchers submitted under this subsection shall be paid by the
State  Comptroller  and  Treasurer by warrants drawn on funds
appropriated to  the  Public  School  Teachers'  Pension  and
Retirement  Fund of Chicago State Board of Education for that
purpose.
    (b)  The State Board of Education shall, in State  fiscal
year  1995,  pay  to  the  Teachers' Retirement System of the
State of Illinois the amount appropriated  for  the  required
State  contribution  to the System for that fiscal year.  The
State Board of Education shall present vouchers to the  State
Comptroller  for  this  purpose  on the 10th and 20th days of
each month of the fiscal year, other than the month of  July.
Each  payment in the months of August through May shall equal
1/24 of the amount appropriated for that  fiscal  year;  each
payment  in  the month of June shall equal 1/12 of the amount
appropriated for that fiscal year.
    Vouchers submitted under this subsection shall be paid by
the State Comptroller and  Treasurer  by  warrants  drawn  on
funds  appropriated  to the State Board of Education for that
purpose.
    (c)  Beginning in State fiscal year  1996,  the  required
State contributions to the Teachers' Retirement System of the
State  of  Illinois  shall  be  appropriated  directly to the
System and  paid  on  vouchers  submitted  by  the  board  of
trustees  of  the  retirement  system, as provided in Section
16-158 of the Illinois Pension Code.  These vouchers shall be
paid by the State Comptroller and Treasurer by warrants drawn
on funds appropriated  to  the  retirement  system  for  that
purpose.
(Source: P.A. 88-593, eff. 8-22-94.)

    (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
    Sec.   18-8.  Basis   for   apportionment  to  districts,
laboratory schools and alternative schools.
    A.  The amounts to be apportioned for school years  prior
to  the  1998-1999  school  year shall be determined for each
educational service region by school districts, as follows:
    1.  General Provisions.
    (a)  In the computation of the amounts to be apportioned,
the average daily  attendance  of  all  pupils  in  grades  9
through  12  shall  be multiplied by 1.25.  The average daily
attendance  of  all  pupils  in  grades  7  and  8  shall  be
multiplied by 1.05.
    (b)  The  actual  number  of  pupils  in  average   daily
attendance shall be computed in a one-teacher school district
by  dividing  the total aggregate days of pupil attendance by
the actual number of days school is in session but  not  more
than  30  such  pupils  shall  be accredited for such type of
district; and in districts of  2  or  more  teachers,  or  in
districts  where  records  of  attendance are kept by session
teachers, by taking the sum of the respective averages of the
units composing the group.
    (c)  Pupils in average daily attendance shall be computed
upon the average of the best 3 months of pupils attendance of
the current school year except  as  district  claims  may  be
later  amended  as  provided  hereinafter  in  this  Section.
However,   for   any   school   district  maintaining  grades
kindergarten through 12, the "average daily attendance" shall
be computed on the average of the best  3  months  of  pupils
attendance of the current year in grades kindergarten through
8,  added  together  with the average of the best 3 months of
pupils attendance of the current year in grades 9 through 12,
except as district claims may be later amended as provided in
this Section.  Days of attendance shall be  kept  by  regular
calendar  months,  except  any  days  of attendance in August
shall be added to the month of  September  and  any  days  of
attendance  in  June  shall  be  added  to  the month of May.
Except  as  otherwise  provided  in  this  Section,  days  of
attendance by pupils shall be counted only  for  sessions  of
not  less  than  5  clock  hours of school work per day under
direct supervision of: (i)  teachers,  or  (ii)  non-teaching
personnel   or   volunteer   personnel   when   engaging   in
non-teaching   duties  and  supervising  in  those  instances
specified in subsection (a) of Section 10-22.34 and paragraph
10 of Section 34-18, with pupils of legal school age  and  in
kindergarten and grades 1 through 12.
    (d)  Pupils  regularly  enrolled  in  a public school for
only a part of the school day may be counted on the basis  of
1/6  day for every class hour of instruction of 40 minutes or
more attended pursuant to such enrollment.
    (e)  Days of attendance may be less than 5 clock hours on
the opening and closing of the  school  term,  and  upon  the
first  day  of pupil attendance, if preceded by a day or days
utilized as an institute or teachers' workshop.
    (f)  A session of 4 or more clock hours may be counted as
a day  of  attendance  upon  certification  by  the  regional
superintendent,  and  approved by the State Superintendent of
Education to the extent that the district has been forced  to
use daily multiple sessions.
    (g)  A session of 3 or more clock hours may be counted as
a  day of attendance (1) when the remainder of the school day
or at least 2 hours in the evening of that  day  is  utilized
for  an  in-service  training  program  for teachers, up to a
maximum of 5 days per school year of which  a  maximum  of  4
days   of   such  5  days  may  be  used  for  parent-teacher
conferences,  provided  a  district  conducts  an  in-service
training program for teachers which has been approved by  the
State  Superintendent  of  Education;  or,  in lieu of 4 such
days, 2 full days may be used, in which event each  such  day
may  be  counted as a day of attendance; and (2) when days in
addition to those provided in item (1)  are  scheduled  by  a
school  pursuant to its school improvement plan adopted under
Article 34 or its revised or amended school improvement  plan
adopted under Article 2, provided that (i) such sessions of 3
or  more  clock  hours  are  scheduled  to  occur  at regular
intervals, (ii) the remainder of the  school  days  in  which
such  sessions  occur  are  utilized  for in-service training
programs or other staff development activities for  teachers,
and (iii) a sufficient number of minutes of school work under
the  direct  supervision  of teachers are added to the school
days between such regularly scheduled sessions to  accumulate
not less than the number of minutes by which such sessions of
3  or  more clock hours fall short of 5 clock hours. Any full
days used for the purposes of this  paragraph  shall  not  be
considered  for  computing  average  daily  attendance.  Days
scheduled for in-service training programs, staff development
activities, or parent-teacher conferences  may  be  scheduled
separately   for   different   grade   levels  and  different
attendance centers of the district.
    (h)  A session of not less than one clock  hour  teaching
of  hospitalized  or homebound pupils on-site or by telephone
to the classroom may be counted as  1/2  day  of  attendance,
however  these  pupils  must receive 4 or more clock hours of
instruction to be counted for a full day of attendance.
    (i)  A session of at least 4 clock hours may  be  counted
as  a day of attendance for first grade pupils, and pupils in
full day kindergartens, and a session of 2 or more hours  may
be   counted   as   1/2   day  of  attendance  by  pupils  in
kindergartens which provide only 1/2 day of attendance.
    (j)  For children with disabilities who are below the age
of 6 years and who cannot attend  two  or  more  clock  hours
because  of  their disability or immaturity, a session of not
less than one clock  hour  may  be  counted  as  1/2  day  of
attendance; however for such children whose educational needs
so  require a session of 4 or more clock hours may be counted
as a full day of attendance.
    (k)  A recognized kindergarten which  provides  for  only
1/2  day of attendance by each pupil shall not have more than
1/2 day  of  attendance  counted  in  any  1  day.   However,
kindergartens  may  count  2  1/2 days of attendance in any 5
consecutive school  days.   Where  a  pupil  attends  such  a
kindergarten  for  2  half  days  on any one school day, such
pupil shall have the following  day  as  a  day  absent  from
school,  unless  the  school  district  obtains permission in
writing  from  the   State   Superintendent   of   Education.
Attendance  at  kindergartens which provide for a full day of
attendance by  each  pupil  shall  be  counted  the  same  as
attendance  by  first  grade  pupils.  Only the first year of
attendance in one kindergarten shall  be  counted  except  in
case  of children who entered the kindergarten in their fifth
year whose educational development requires a second year  of
kindergarten as determined under the rules and regulations of
the State Board of Education.
    (l)  Days  of  attendance  by  tuition  pupils  shall  be
accredited  only  to  the districts that pay the tuition to a
recognized school.
    (m)  The greater  of  the  immediately  preceding  year's
weighted  average  daily  attendance  or  the  average of the
weighted  average  daily  attendance   of   the   immediately
preceding year and the previous 2 years shall be used.
    For any school year beginning July 1, 1986 or thereafter,
if  the  weighted  average  daily attendance in either grades
kindergarten through 8 or grades 9 through 12 of  a  district
as  computed  for  the  first  calendar  month of the current
school year exceeds by more than 5%, but  not  less  than  25
pupils,  the district's weighted average daily attendance for
the first calendar month of the  immediately  preceding  year
in,  respectively,  grades kindergarten through 8 or grades 9
through 12, a supplementary payment  shall  be  made  to  the
district  equal  to  the  difference in the amount of aid the
district would be paid under this Section using the  weighted
average  daily attendance in the district as computed for the
first calendar month of  the  current  school  year  and  the
amount  of  aid the district would be paid using the weighted
average daily  attendance  in  the  district  for  the  first
calendar  month  of  the  immediately  preceding  year.  Such
supplementary State aid payment shall be paid to the district
as provided  in  Section  18-8.4  and  shall  be  treated  as
separate  from  all  other  payments  made  pursuant  to this
Section 18-8.
    (n)  The number  of  low  income  eligible  pupils  in  a
district  shall result in an increase in the weighted average
daily attendance calculated as follows:  The  number  of  low
income pupils shall increase the weighted ADA by .53 for each
student  adjusted  by  dividing  the  percent  of  low income
eligible pupils in the district by the ratio of eligible  low
income  pupils  in  the  State to the best 3 months' weighted
average daily attendance in the State.  In no  case  may  the
adjustment under this paragraph result in a greater weighting
than  .625  for each eligible low income student.  The number
of low income eligible pupils in  a  district  shall  be  the
low-income  eligible  count  from the most recently available
federal census and  the  weighted  average  daily  attendance
shall  be  calculated in accordance with the other provisions
of this paragraph.
    (o)  Any school district which fails for any given school
year to maintain school as required by law, or to maintain  a
recognized  school  is  not  eligible to file for such school
year any claim upon the  common  school  fund.   In  case  of
nonrecognition  of one or more attendance centers in a school
district otherwise operating recognized schools, the claim of
the district shall be reduced in  the  proportion  which  the
average  daily attendance in the attendance center or centers
bear to the average daily attendance in the school  district.
A "recognized school" means any public school which meets the
standards  as  established for recognition by the State Board
of Education.  A school district  or  attendance  center  not
having  recognition  status  at  the  end of a school term is
entitled to receive State aid payments due upon a legal claim
which was filed while it was recognized.
    (p)  School district claims filed under this Section  are
subject  to  Sections 18-9, 18-10 and 18-12, except as herein
otherwise provided.
    (q)  The State Board of Education shall secure  from  the
Department  of  Revenue the value as equalized or assessed by
the Department of Revenue of all taxable  property  of  every
school district together with the applicable tax rate used in
extending taxes for the funds of the district as of September
30 of the previous year.  The Department of Revenue shall add
to  the  equalized  assessed value of all taxable property of
each school district situated entirely or partially within  a
county  with 2,000,000 or more inhabitants an amount equal to
the total amount by which the  homestead  exemptions  allowed
under Sections 15-170 and 15-175 of the Property Tax Code for
real  property  situated  in that school district exceeds the
total amount that would have  been  allowed  in  that  school
district  as homestead exemptions under those Sections if the
maximum reduction under Section 15-170 of  the  Property  Tax
Code  was  $2,000  and  the  maximum  reduction under Section
15-175 of the Property Tax Code was $3,500.  The county clerk
of any  county  with  2,000,000  or  more  inhabitants  shall
annually  calculate  and  certify  to the Department for each
school district all homestead exemption amounts  required  by
this amendatory Act of 1992.  In a new district which has not
had  any  tax  rates yet determined for extension of taxes, a
leveled uniform rate shall be computed from the latest amount
of the fund taxes extended on the several areas  within  such
new district.
    (r)  If  a  school  district  operates a full year school
under Section 10-19.1, the general state aid  to  the  school
district  shall be determined by the State Board of Education
in accordance with this Section as near as may be applicable.
    2.  New  or  recomputed  claim.  The  general  State  aid
entitlement for a newly created school district or a district
which has annexed an entire school district shall be computed
using  attendance,  compensatory  pupil   counts,   equalized
assessed  valuation,  and tax rate data which would have been
used had the district been in existence for 3 years.  General
State  aid  entitlements  shall  not  be recomputed except as
permitted herein.
    3.  Impaction.   Impaction  payments  shall  be  made  as
provided for in Section 18-4.2.
    4.  Summer school.  Summer school payments shall be  made
as provided in Section 18-4.3.
    5.  Computation  of  State aid.  The State grant shall be
determined as follows:
    (a)  The State shall guarantee the amount of money that a
district's operating tax rate as limited in other Sections of
this Act would produce if every district  maintaining  grades
kindergarten  through  12 had an equalized assessed valuation
equal to $74,791  per  weighted  ADA  pupil;  every  district
maintaining  grades  kindergarten  through 8 had an equalized
assessed valuation of $108,644 per weighted  ADA  pupil;  and
every  district  maintaining  grades  9  through  12  had  an
equalized  assessed  valuation  of  $187,657 per weighted ADA
pupil.  The  State  Board  of  Education  shall  adjust   the
equalized   assessed   valuation   amounts   stated  in  this
paragraph, if necessary, to conform  to  the  amount  of  the
appropriation approved for any fiscal year.
    (b)  The  operating  tax rate to be used shall consist of
all district taxes extended for all purposes except community
college educational purposes for the payment of tuition under
Section 6-1 of the Public Community  College  Act,  Bond  and
Interest,   Summer  School,  Rent,  Capital  Improvement  and
Vocational Education Building.  Any  district  may  elect  to
exclude  Transportation from the calculation of its operating
tax rate.  Districts  may  include  taxes  extended  for  the
payment  of  principal and interest on bonds issued under the
provisions of Sections 17-2.11a and 20-2 at a  rate  of  .05%
per  year  for  each  purpose  or  the  actual rate extended,
whichever is less.
    (c)  For calculation of aid under  this  Act  a  district
shall  use the combined authorized tax rates of all funds not
exempt in (b) above, not to exceed 2.76% of the value of  all
its   taxable  property  as  equalized  or  assessed  by  the
Department  of  Revenue  for  districts  maintaining   grades
kindergarten  through  12;  1.90%  of  the  value  of all its
taxable property as equalized or assessed by  the  Department
of  Revenue  for  districts  maintaining  grades kindergarten
through 8 only;  1.10%  of  the  value  of  all  its  taxable
property  as  equalized  or  assessed  by  the  Department of
Revenue for districts maintaining grades 9 through  12  only.
A  district may, however, as provided in Article 17, increase
its operating tax rate above the  maximum  rate  provided  in
this  subsection without affecting the amount of State aid to
which it is entitled under this Act.
    (d) (1)  For districts  maintaining  grades  kindergarten
through  12  with  an  operating  tax  rate  as  described in
subsections 5(b) and (c) of less than  2.18%,  and  districts
maintaining  grades  kindergarten through 8 with an operating
tax rate of less than 1.28%, State aid shall be  computed  by
multiplying  the  difference between the guaranteed equalized
assessed valuation per weighted ADA pupil in subsection  5(a)
and  the  equalized assessed valuation per weighted ADA pupil
in the district by the operating tax rate, multiplied by  the
weighted  average daily attendance of the district; provided,
however, that for the 1989-1990 school year  only,  a  school
district  maintaining  grades  kindergarten  through  8 whose
operating tax rate with reference to which its general  State
aid  for the 1989-1990 school year is determined is less than
1.28% and more than 1.090%, and which had  an  operating  tax
rate  of  1.28% or more for the previous year, shall have its
general State aid computed according  to  the  provisions  of
subsection 5(d)(2).
    (2)  For   districts   maintaining   grades  kindergarten
through 12  with  an  operating  tax  rate  as  described  in
subsection  5(b)  and  (c)  of 2.18% and above, the State aid
shall be computed as provided in subsection (d)  (1)  but  as
though  the  district  had an operating tax rate of 2.76%; in
K-8 districts with an operating tax rate of 1.28% and  above,
the State aid shall be computed as provided in subsection (d)
(1)  but  as though the district had an operating tax rate of
1.90%; and in 9-12 districts, the State aid shall be computed
by  multiplying  the  difference   between   the   guaranteed
equalized  assessed  valuation  per  weighted  average  daily
attendance   pupil  in  subsection  5(a)  and  the  equalized
assessed valuation  per  weighted  average  daily  attendance
pupil  in  the  district  by  the  operating tax rate, not to
exceed  1.10%,  multiplied  by  the  weighted  average  daily
attendance of the district.  State  aid  computed  under  the
provisions  of  this  subsection  (d) (2) shall be treated as
separate from  all  other  payments  made  pursuant  to  this
Section.   The  State  Comptroller  and State Treasurer shall
transfer from the General Revenue Fund to the  Common  School
Fund  the amounts necessary to permit these claims to be paid
in equal installments along with  other  State  aid  payments
remaining to be made for the 1983-1984 school year under this
Section.
    (3)  For   any   school  district  whose  1995  equalized
assessed  valuation  is  at  least  6%  less  than  its  1994
equalized assessed valuation as the result of a reduction  in
the  equalized  assessed  valuation  of  the taxable property
within such  district  of  any  one  taxpayer  whose  taxable
property  within  the  district has a 1994 equalized assessed
valuation constituting at least 20%  of  the  1994  equalized
assessed   valuation  of  all  taxable  property  within  the
district, the 1996-97 State aid of  such  district  shall  be
computed using its 1995 equalized assessed valuation.
    (4)  For   any   school  district  whose  1988  equalized
assessed valuation is 55%  or  less  of  its  1981  equalized
assessed  valuation,  the  1990-91 State aid of such district
shall be computed by multiplying the 1988 equalized  assessed
valuation  by a factor of .8.  Any such school district which
is reorganized effective for the 1991-92  school  year  shall
use the formula provided in this subparagraph for purposes of
the  calculation  made  pursuant  to  subsection  (m) of this
Section.
    (e)  The amount of State aid shall be computed under  the
provisions  of  subsections  5(a)  through  5(d) provided the
equalized assessed valuation per weighted ADA pupil  is  less
than  .87 of the amounts in subsection 5(a). If the equalized
assessed valuation per weighted ADA  pupil  is  equal  to  or
greater than .87 of the amounts in subsection 5(a), the State
aid  shall  be  computed  under  the provisions of subsection
5(f).
    (f)  If the equalized assessed valuation per weighted ADA
pupil is equal to or greater  than  .87  of  the  amounts  in
subsection  5(a),  the State aid per weighted ADA pupil shall
be computed by multiplying  the  product  of  .13  times  the
maximum  per  pupil  amount  computed under the provisions of
subsections 5(a) through 5(d)  by  an  amount  equal  to  the
quotient  of  .87  times the equalized assessed valuation per
weighted ADA pupil  in  subsection  5(a)  for  that  type  of
district  divided  by  the  district  equalized valuation per
weighted ADA pupil except  in  no  case  shall  the  district
receive  State  aid  per  weighted ADA pupil of less than .07
times  the  maximum  per  pupil  amount  computed  under  the
provisions of subsections 5(a) through 5(d).
    (g)  In addition  to  the  above  grants,  summer  school
grants  shall  be made based upon the calculation as provided
in subsection 4 of this Section.
    (h)  The board of  any  district  receiving  any  of  the
grants  provided for in this Section may apply those funds to
any fund so received for which that board  is  authorized  to
make expenditures by law.
    (i) (1) (a)  In  school  districts  with an average daily
attendance of 50,000 or more, the amount  which  is  provided
under subsection 1(n) of this Section by the application of a
base  Chapter 1 weighting factor of .375 shall be distributed
to the attendance centers within the district  in  proportion
to  the  number  of pupils enrolled at each attendance center
who are eligible to receive free or reduced-price lunches  or
breakfasts  under the federal Child Nutrition Act of 1966 and
under the National School Lunch Act  during  the  immediately
preceding  school  year.   The  amount  of State aid provided
under subsection 1(n) of this Section by the  application  of
the  Chapter  1  weighting  factor in excess of .375 shall be
distributed to the attendance centers within the district  in
proportion to the total enrollment at each attendance center.
Beginning  with  school  year  1989-90,  and each school year
thereafter, all funds provided under subsection 1 (n) of this
Section by the application of the Chapter 1 weighting  factor
which  are  in  excess of the level of non-targeted Chapter 1
funds  in  school  year  1988-89  shall  be  distributed   to
attendance  centers,  and  only to attendance centers, within
the district in proportion to the number of  pupils  enrolled
at each attendance center who are eligible to receive free or
reduced  price  lunches or breakfasts under the Federal Child
Nutrition Act and under the National School Lunch Act  during
the  immediately  preceding school year.  Beginning in school
year 1989-90, 25% of the previously  non-targeted  Chapter  1
funds  as  established  for school year 1988-89 shall also be
distributed to the attendance centers, and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive free or reduced price lunches or breakfasts under the
Federal  Child  Nutrition  Act  and under the National School
Lunch Act during the immediately preceding  school  year;  in
school  year  1990-91,  50%  of  the  previously non-targeted
Chapter 1 funds as established for school year 1988-89  shall
be  distributed to attendance centers, and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive  such  free  or  reduced  price lunches or breakfasts
during the immediately preceding school year; in school  year
1991-92,  75%  of the previously non-targeted Chapter 1 funds
as established for school year 1988-89 shall  be  distributed
to attendance centers, and only to attendance centers, in the
district  in  proportion  to the number of pupils enrolled at
each attendance center who are eligible to receive such  free
or reduced price lunches or breakfasts during the immediately
preceding school year; in school year 1992-93 and thereafter,
all  funds provided under subsection 1 (n) of this Section by
the application of the Chapter 1 weighting  factor  shall  be
distributed  to  attendance  centers,  and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive free or reduced price lunches or breakfasts under the
Federal  Child  Nutrition  Act  and under the National School
Lunch Act  during  the  immediately  preceding  school  year;
provided,  however,  that  the distribution formula in effect
beginning with school year 1989-90 shall not be applicable to
such portion of State aid provided under subsection 1 (n)  of
this  Section  by  the application of the Chapter 1 weighting
formula as is  set  aside  and  appropriated  by  the  school
district  for the purpose of providing desegregation programs
and related transportation to students (which  portion  shall
not  exceed  5%  of  the  total  amount of State aid which is
provided  under  subsection  1  (n)  of   this   Section   by
application  of  the  Chapter  1  weighting formula), and the
relevant  percentages  shall  be  applied  to  the  remaining
portion  of  such  State  aid.   The  distribution  of  these
portions  of  general  State  aid  among  attendance  centers
according to these requirements shall not be compensated  for
or  contravened  by  adjustments  of the total of other funds
appropriated to any attendance centers.   (b)  The  Board  of
Education  shall  utilize funding from one or several sources
in order to fully implement this provision annually prior  to
the  opening  of  school.  The Board of Education shall apply
savings from  reduced  administrative  costs  required  under
Section  34-43.1  and growth in non-Chapter 1 State and local
funds to assure that all attendance centers  receive  funding
to replace losses due to redistribution of Chapter 1 funding.
The distribution formula and funding to replace losses due to
the  distribution formula shall occur, in full, using any and
all sources available, including, if necessary, revenue  from
administrative  reductions  beyond  those required in Section
34-43.1, in order to provide the necessary funds.   (c)  Each
attendance  center shall be provided by the school district a
distribution of noncategorical funds  and  other  categorical
funds  to which an attendance center is entitled under law in
order that the State  aid  provided  by  application  of  the
Chapter  1  weighting  factor  and required to be distributed
among attendance centers according  to  the  requirements  of
this   paragraph   supplements   rather  than  supplants  the
noncategorical funds and other categorical funds provided  by
the    school    district    to   the   attendance   centers.
Notwithstanding the foregoing provisions of  this  subsection
5(i)(1)  or any other law to the contrary, beginning with the
1995-1996 school year and for each  school  year  thereafter,
the  board  of  a  school district to which the provisions of
this subsection  apply  shall  be  required  to  allocate  or
provide  to  attendance  centers  of the district in any such
school year, from the State aid  provided  for  the  district
under  this Section by application of the Chapter 1 weighting
factor, an aggregate amount of not less than $261,000,000  of
State  Chapter  1  funds.  Any  State Chapter 1 funds that by
reason of the provisions of this paragraph are  not  required
to  be  allocated  and  provided to attendance centers may be
used and appropriated by the board of the  district  for  any
lawful  school  purpose.    Chapter  1  funds  received by an
attendance  center  (except  those  funds   set   aside   for
desegregation   programs   and   related   transportation  to
students) shall be used on the schedule cited in this Section
at the attendance center at the discretion of  the  principal
and  local school council for programs to improve educational
opportunities at qualifying  schools  through  the  following
programs  and  services:  early  childhood education, reduced
class size or improved  adult  to  student  classroom  ratio,
enrichment    programs,   remedial   assistance,   attendance
improvement and other educationally  beneficial  expenditures
which supplement the regular and basic programs as determined
by  the  State Board of Education.  Chapter 1 funds shall not
be expended for any political or lobbying purposes as defined
by board rule. (d) Each district subject to the provisions of
this paragraph shall submit an acceptable plan  to  meet  the
educational  needs  of  disadvantaged children, in compliance
with the requirements of this paragraph, to the  State  Board
of  Education  prior to July 15 of each year. This plan shall
be consistent with the decisions  of  local  school  councils
concerning   the   school   expenditure  plans  developed  in
accordance with part 4 of Section 34-2.3.   The  State  Board
shall  approve  or  reject  the plan within 60 days after its
submission.  If the plan is rejected the district shall  give
written notice of intent to modify the plan within 15 days of
the notification of rejection and then submit a modified plan
within 30 days after the date of the written notice of intent
to  modify.    Districts may amend approved plans pursuant to
rules promulgated by the State Board of Education.
    Upon notification by the State Board  of  Education  that
the  district  has not submitted a plan prior to July 15 or a
modified plan within the time period  specified  herein,  the
State  aid funds affected by said plan or modified plan shall
be withheld by the State Board of Education until a  plan  or
modified plan is submitted.
    If   the  district  fails  to  distribute  State  aid  to
attendance centers in accordance with an approved  plan,  the
plan for the following year shall allocate funds, in addition
to  the  funds  otherwise  required  by this subparagraph, to
those attendance centers which were  underfunded  during  the
previous year in amounts equal to such underfunding.
    For   purposes   of   determining  compliance  with  this
subsection  in  relation  to  Chapter  1  expenditures,  each
district subject to the provisions of this  subsection  shall
submit  as  a  separate document by December 1 of each year a
report of Chapter 1 expenditure data for the  prior  year  in
addition  to  any modification of its current plan.  If it is
determined that there has been a failure to comply  with  the
expenditure   provisions   of   this   subsection   regarding
contravention  or  supplanting,  the  State Superintendent of
Education shall, within 60 days of  receipt  of  the  report,
notify  the  district  and any affected local school council.
The  district  shall  within  45  days  of  receipt  of  that
notification inform the State Superintendent of Education  of
the  remedial  or  corrective action to be taken, whether  by
amendment of the current plan, if feasible, or by  adjustment
in  the  plan for the following year.  Failure to provide the
expenditure  report  or  the  notification  of  remedial   or
corrective  action  in  a  timely  manner  shall  result in a
withholding of the affected funds.
    The State Board of Education shall promulgate  rules  and
regulations  to  implement  the provisions of this subsection
5(i)(1).  No funds shall be released under subsection 1(n) of
this Section or under this subsection 5(i)(1) to any district
which has not submitted a plan which has been approved by the
State Board of Education.
    (2)  School districts with an average daily attendance of
more than 1,000 and less than 50,000 and having a low  income
pupil  weighting  factor in excess of .53 shall submit a plan
to the State Board of Education prior to October 30  of  each
year  for the use of the funds resulting from the application
of subsection 1(n) of this Section  for  the  improvement  of
instruction  in  which  priority  is  given  to  meeting  the
education  needs  of disadvantaged children.  Such plan shall
be  submitted  in  accordance  with  rules  and   regulations
promulgated by the State Board of Education.
    (j)  For the purposes of calculating State aid under this
Section, with respect to any part of a school district within
a   redevelopment   project   area  in  respect  to  which  a
municipality has adopted tax increment  allocation  financing
pursuant  to  the Tax Increment Allocation Redevelopment Act,
Sections  11-74.4-1  through  11-74.4-11  of   the   Illinois
Municipal  Code or the Industrial Jobs Recovery Law, Sections
11-74.6-1 through 11-74.6-50 of the Illinois Municipal  Code,
no  part  of the current equalized assessed valuation of real
property  located  in  any  such  project   area   which   is
attributable to an increase above the total initial equalized
assessed   valuation  of  such  property  shall  be  used  in
computing the equalized assessed valuation per  weighted  ADA
pupil  in  the district, until such time as all redevelopment
project  costs  have  been  paid,  as  provided  in   Section
11-74.4-8  of  the Tax Increment Allocation Redevelopment Act
or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
For the purpose of computing the equalized assessed valuation
per weighted ADA pupil in  the  district  the  total  initial
equalized   assessed   valuation  or  the  current  equalized
assessed valuation, whichever is lower, shall be  used  until
such time as all redevelopment project costs have been paid.
    (k)  For  a school district operating under the financial
supervision of an Authority created under  Article  34A,  the
State  aid  otherwise  payable  to  that  district under this
Section, other than  State  aid  attributable  to  Chapter  1
students,  shall  be reduced by an amount equal to the budget
for the operations of  the  Authority  as  certified  by  the
Authority  to  the  State  Board  of Education, and an amount
equal to such  reduction  shall  be  paid  to  the  Authority
created  for  such district for its operating expenses in the
manner provided in Section 18-11.   The  remainder  of  State
school  aid for any such district shall be paid in accordance
with Article 34A when that Article provides for a disposition
other than that provided by this Article.
    (l)  For purposes of calculating  State  aid  under  this
Section,  the  equalized  assessed  valuation  for  a  school
district  used  to  compute  State aid shall be determined by
adding to the real property equalized assessed valuation  for
the  district  an  amount  computed by dividing the amount of
money received by the district under the  provisions  of  "An
Act  in  relation  to  the  abolition  of ad valorem personal
property tax and the replacement of revenues  lost  thereby",
certified  August  14,  1979,  by  the total tax rate for the
district. For purposes of  this  subsection  1976  tax  rates
shall  be used for school districts in the county of Cook and
1977 tax rates shall be used  for  school  districts  in  all
other counties.
    (m) (1)  For  a  new  school district formed by combining
property  included  totally  within  2  or  more   previously
existing school districts, for its first year of existence or
if  the  new  district  was formed after October 31, 1982 and
prior  to  September  23,  1985,  for  the  year  immediately
following September 23, 1985, the State aid calculated  under
this  Section  shall be computed for the new district and for
the previously  existing  districts  for  which  property  is
totally included within the new district.  If the computation
on the basis of the previously existing districts is greater,
a supplementary payment equal to the difference shall be made
for  the first 3 years of existence of the new district or if
the new district was formed after October 31, 1982 and  prior
to  September 23, 1985, for the 3 years immediately following
September 23, 1985.
    (2)  For a school  district  which  annexes  all  of  the
territory  of  one or more entire other school districts, for
the  first  year  during  which  the  change  of   boundaries
attributable  to  such  annexation  becomes effective for all
purposes as determined under Section 7-9 or 7A-8,  the  State
aid  calculated  under this Section shall be computed for the
annexing district as constituted after the annexation and for
the annexing and each annexed district as  constituted  prior
to the annexation; and if the computation on the basis of the
annexing  and  annexed  districts as constituted prior to the
annexation is greater, a supplementary payment equal  to  the
difference  shall  be made for the first 3 years of existence
of the annexing school  district  as  constituted  upon  such
annexation.
    (3)  For  2  or  more school districts which annex all of
the territory of one or more entire other  school  districts,
and  for 2 or more community unit districts which result upon
the division (pursuant to petition under  Section  11A-2)  of
one  or more other unit school districts into 2 or more parts
and which together include all of the parts into  which  such
other  unit  school district or districts are so divided, for
the  first  year  during  which  the  change  of   boundaries
attributable to such annexation or division becomes effective
for  all  purposes as determined under Section 7-9 or 11A-10,
as the case may be,  the  State  aid  calculated  under  this
Section  shall  be  computed  for  each annexing or resulting
district as constituted after the annexation or division  and
for each annexing and annexed district, or for each resulting
and  divided district, as constituted prior to the annexation
or division; and if the aggregate of  the  State  aid  as  so
computed   for   the   annexing  or  resulting  districts  as
constituted after the annexation or division is less than the
aggregate of the State aid as so computed  for  the  annexing
and  annexed  districts,  or  for  the  resulting and divided
districts,  as  constituted  prior  to  the   annexation   or
division,   then   a   supplementary  payment  equal  to  the
difference shall be made and allocated between or  among  the
annexing  or  resulting  districts,  as constituted upon such
annexation or division,  for  the  first  3  years  of  their
existence.   The  total difference payment shall be allocated
between or among the annexing or resulting districts  in  the
same  ratio  as the pupil enrollment from that portion of the
annexed or divided district or districts which is annexed  to
or included in each such annexing or resulting district bears
to  the  total  pupil  enrollment  from the entire annexed or
divided district or districts, as such  pupil  enrollment  is
determined  for the school year last ending prior to the date
when the change of boundaries attributable to the  annexation
or  division  becomes effective for all purposes.  The amount
of the total difference payment and the amount thereof to  be
allocated  to  the  annexing  or resulting districts shall be
computed by the State Board of  Education  on  the  basis  of
pupil  enrollment  and other data which shall be certified to
the State Board of Education, on forms which it shall provide
for that purpose, by the regional superintendent  of  schools
for each educational service region in which the annexing and
annexed  districts,  or  resulting  and divided districts are
located.
    (4)  If a unit school district annexes all the  territory
of  another  unit  school district effective for all purposes
pursuant to Section 7-9 on July 1, 1988, and if part  of  the
annexed  territory  is  detached within 90 days after July 1,
1988, then the detachment shall be disregarded  in  computing
the supplementary State aid payments under this paragraph (m)
for  the entire 3 year period and the supplementary State aid
payments shall not be diminished because of the detachment.
    (5)  Any supplementary State aid payment made under  this
paragraph  (m)  shall  be  treated as separate from all other
payments made pursuant to this Section.
    (n)  For the purposes of calculating State aid under this
Section, the real property equalized assessed valuation for a
school district used to compute State aid shall be determined
by subtracting from the real property value as  equalized  or
assessed  by  the  Department  of Revenue for the district an
amount computed by dividing the amount of  any  abatement  of
taxes  under  Section  18-170 of the Property Tax Code by the
maximum operating tax rates specified in subsection  5(c)  of
this Section and an amount computed by dividing the amount of
any abatement of taxes under subsection (a) of Section 18-165
of  the  Property Tax Code by the maximum operating tax rates
specified in subsection 5(c) of this Section.
    (o)  Notwithstanding  any  other   provisions   of   this
Section,  for  the  1996-1997  school  year the amount of the
aggregate general State  aid  entitlement  that  is  received
under  this  Section  by each school district for that school
year shall be not less  than  the  amount  of  the  aggregate
general  State  aid  entitlement  that  was  received  by the
district under this Section for the  1995-1996  school  year.
If a school district is to receive an aggregate general State
aid  entitlement  under this Section for the 1996-1997 school
year that is less than the amount of  the  aggregate  general
State  aid  entitlement that the district received under this
Section for the 1995-1996 school year,  the  school  district
shall  also  receive,  from a separate appropriation made for
purposes of this paragraph (o), a supplementary payment  that
is  equal  to  the  amount  by  which  the  general State aid
entitlement received by the district under this  Section  for
the  1995-1996  school  year  exceeds  the  general State aid
entitlement that  the  district  is  to  receive  under  this
Section for the 1996-1997 school year.
    Notwithstanding any other provisions of this Section, for
the 1997-1998 school year the amount of the aggregate general
State  aid entitlement that is received under this Section by
each school district for that school year shall be  not  less
than   the   amount   of  the  aggregate  general  State  aid
entitlement that was received  by  the  district  under  this
Section  for the 1996-1997 school year.  If a school district
is to receive an  aggregate  general  State  aid  entitlement
under this Section for the 1997-1998 school year that is less
than   the   amount   of  the  aggregate  general  State  aid
entitlement that the district received under this Section for
the 1996-1997 school year, the  school  district  shall  also
receive,  from  a separate appropriation made for purposes of
this paragraph (o), a supplementary payment that is equal  to
the  amount  by  which  the  general  State  aid  entitlement
received by the district under this Section for the 1996-1997
school  year  exceeds  the general State aid entitlement that
the district  is  to  receive  under  this  Section  for  the
1997-1998 school year.
    If  the amount appropriated for supplementary payments to
school districts under this paragraph (o) is insufficient for
that purpose, the supplementary payments that  districts  are
to  receive  under this paragraph shall be prorated according
to  the  aggregate  amount  of  the  appropriation  made  for
purposes of this paragraph.
    (p)  For the 1997-1998 school year only,  a  supplemental
general   State  aid  grant  shall  be  provided  for  school
districts in an amount equal to the greater of the result  of
part  (i) of this subsection or part (ii) of this subsection,
calculated as follows:
         (i)  The general State  aid  received  by  a  school
    district under this Section for the 1997-1998 school year
    shall  be  added to the sum of (A) the result obtained by
    multiplying the 1995 equalized valuation of  all  taxable
    property  in  the  district  by the fixed calculation tax
    rates of 3.0% for unit  districts,  2.0%  for  elementary
    districts and 1.0% for high school districts plus (B) the
    aggregate   corporate   personal   property   replacement
    revenues  received  by  the district during the 1996-1997
    school year.  That; (ii) The aggregate amount  determined
    under this part item (i) of this subsection 5(p) shall be
    divided  by  the  average  of  the best 3 months of pupil
    attendance in  the  district  for  the  1996-1997  school
    year.;  and  (iii) If the result obtained by dividing the
    aggregate amount determined under this part item  (i)  of
    this  subsection 5(p) by the average of the best 3 months
    of pupil attendance in the district as provided  in  item
    (ii)  of  this  subsection  5(p) is less than $3,600, the
    supplemental  general  State  aid  grant  for  that   the
    district shall receive under this subsection 5(p) for the
    1997-1998  school  year  shall  be  equal  to  the amount
    determined by subtracting from $3,600 the result obtained
    by dividing the aggregate amount  determined  under  this
    part  item  (i)  of this subsection by the average of the
    best 3 months of pupil  attendance  in  the  district  as
    provided   in  item  (ii)  of  this  subsection,  and  by
    multiplying that difference by the average of the best  3
    months  of  pupil  attendance  in  the  district  for the
    1996-1997 school year.
         (ii)  The general State aid  received  by  a  school
    district under this Section for the 1997-1998 school year
    shall  be  added to the sum of (A) the result obtained by
    multiplying the 1995 equalized assessed valuation of  all
    taxable  property  in  the  district  by  the  district's
    applicable  1995  operating  tax  rate as defined in this
    part (ii)  plus  (B)  the  aggregate  corporate  personal
    property  replacement  revenues  received by the district
    during the 1996-1997 school year.  That aggregate  amount
    shall  be  divided by the average of the best 3 months of
    pupil attendance in the district for the 1996-1997 school
    year.  If the result obtained by dividing  the  aggregate
    amount determined in this part (ii) by the average of the
    best 3 months of pupil attendance in the district is less
    than $4,100, the supplemental general State aid grant for
    that  district shall be equal to the amount determined by
    subtracting  from  the  $4,100  the  result  obtained  by
    dividing the aggregate amount  determined  in  this  part
    (ii)  by  the  average  of  the  best  3  months of pupil
    attendance  in  the  district  and  by  multiplying  that
    difference by the average of the best 3 months  of  pupil
    attendance in the district for the 1996-1997 school year.
    For  the purposes of this part (ii), the "applicable 1995
    operating tax rate" shall mean  the  following:  (A)  for
    unit districts with operating tax rates of 3.00% or less,
    elementary districts with operating tax rates of 2.00% or
    less,  and high school districts with operating tax rates
    of 1.00% or less, the applicable 1995 operating tax  rate
    shall  be  3.00% for unit districts, 2.00% for elementary
    districts, and 1.00% for high school districts;  (B)  for
    unit districts with operating tax rates of 4.50% or more,
    elementary districts with operating tax rates of 3.00% or
    more,  and high school districts with operating tax rates
    of 1.85% or more, the applicable 1995 operating tax  rate
    shall  be  4.50% for unit districts, 3.00% for elementary
    districts, and 1.85% for high school districts;  and  (C)
    for  unit districts with operating tax rates of more than
    3.00% and less than 4.50%, for elementary districts  with
    operating  tax  rates  of  more  than 2.00% and less than
    3.00%, and for high school districts with  operating  tax
    rates  of  more  than  1.00%  and  less  than  1.85%, the
    applicable  1995  operating  tax  rate   shall   be   the
    district's actual 1995 operating tax rate.
    If the moneys appropriated in a separate line item by the
General   Assembly  to  the  State  Board  of  Education  for
supplementary payments required to be made and distributed to
school districts for the 1997-1998 any school year under this
subsection  5(p)  are  insufficient,  the   amount   of   the
supplementary payments required to be made and distributed to
those  school  districts  under this subsection 5(p) for that
school year shall abate proportionately.
    (p-5)  For the 1997-98 school year only,  a  supplemental
general   State  aid  grant  shall  be  provided  for  school
districts based on the number of low-income  eligible  pupils
within  the  school  district.   For  the  purposes  of  this
subsection  5(p-5), "low-income eligible pupils" shall be the
low-income  eligible  pupil  count  from  the  most  recently
available federal census.  The supplemental general State aid
grant for each district shall  be  equal  to  the  number  of
low-income eligible pupils within that district multiplied by
$30.50.    If the moneys appropriated in a separate line item
by the General Assembly to the State Board of  Education  for
supplementary payments required to be made and distributed to
school  districts  for  the  1997-98  school  year under this
subsection  5(p-5)  are  insufficient,  the  amount  of   the
supplementary payments required to be made and distributed to
those   districts   under   this   subsection   shall   abate
proportionately.
    B.  In calculating the amount to be paid to the governing
board  of  a  public  university  that  operates a laboratory
school under this Section or to any alternative  school  that
is  operated by a regional superintendent, the State Board of
Education shall require by rule such  reporting  requirements
as it deems necessary.
    As  used  in  this  Section,  "laboratory school" means a
public school which is  created  and  operated  by  a  public
university and approved by the State Board of Education.  The
governing  board  of a public university which receives funds
from the State Board under this subsection B may not increase
the number of students enrolled in its laboratory school from
a single district, if that district is already sending 50  or
more  students,  except  under a mutual agreement between the
school board of a student's district  of  residence  and  the
university   which   operates   the   laboratory  school.   A
laboratory school may not  have  more  than  1,000  students,
excluding  students  with disabilities in a special education
program.
    As used in this Section,  "alternative  school"  means  a
public  school  which  is  created and operated by a Regional
Superintendent of Schools and approved by the State Board  of
Education.  Such  alternative  schools  may  offer courses of
instruction for which  credit  is  given  in  regular  school
programs,  courses  to  prepare  students for the high school
equivalency testing program or  vocational  and  occupational
training.
    Each  laboratory  and  alternative  school shall file, on
forms provided by the State Superintendent of  Education,  an
annual  State  aid  claim  which  states  the  average  daily
attendance  of  the  school's  students by month.  The best 3
months' average daily attendance shall be computed  for  each
school.   The  weighted  average  daily  attendance  shall be
computed and the weighted average daily  attendance  for  the
school's  most recent 3 year average shall be compared to the
most  recent  weighted  average  daily  attendance,  and  the
greater of the 2 shall be used for the calculation under this
subsection B.  The general State  aid  entitlement  shall  be
computed  by  multiplying  the  school's student count by the
foundation level as determined under this Section.
    C.  This Section is repealed July 1, 1998.
(Source: P.A.  89-15,  eff.  5-30-95;  89-235,  eff.  8-4-95;
89-397, eff.  8-20-95;  89-610,  eff.  8-6-96;  89-618,  eff.
8-9-96; 89-626, eff. 8-9-96; 89-679, eff. 8-16-96; 90-9, eff.
7-1-97; 90-14, eff. 7-1-97.)

    (105 ILCS 5/18-8.05 new)
    Sec.  18-8.05.  Basis  for apportionment of general State
financial aid and  supplemental  general  State  aid  to  the
common schools for the 1998-1999 and subsequent school years.

(A)  General Provisions.
    (1)  The   provisions   of  this  Section  apply  to  the
1998-1999 and subsequent school years.  The system of general
State financial aid provided for in this Section is  designed
to  assure that, through a combination of State financial aid
and required local resources, the financial support  provided
each  pupil  in  Average Daily Attendance equals or exceeds a
prescribed per pupil Foundation Level.  This formula approach
imputes a level of per pupil Available  Local  Resources  and
provides  for  the  basis  to  calculate a per pupil level of
general State financial aid that,  when  added  to  Available
Local Resources, equals or exceeds the Foundation Level.  The
amount  of  per  pupil general State financial aid for school
districts,  in  general,  varies  in  inverse   relation   to
Available  Local Resources.  Per pupil amounts are based upon
each school district's Average Daily Attendance as that  term
is defined in this Section.
    (2)  In  addition  to general State financial aid, school
districts with specified levels or concentrations  of  pupils
from   low   income   households   are  eligible  to  receive
supplemental general State financial aid grants  as  provided
pursuant to subsection (H). The supplemental State aid grants
provided  for  school districts under subsection (H) shall be
appropriated for distribution to school districts as part  of
the  same  line item in which the general State financial aid
of school districts is appropriated under this Section.
    (3)  To receive financial assistance under this  Section,
school  districts  are required to file claims with the State
Board of Education, subject to the following requirements:
         (a)  Any school district which fails for  any  given
    school  year to maintain school as required by law, or to
    maintain a recognized school is not eligible to file  for
    such  school  year any claim upon the Common School Fund.
    In case of  nonrecognition  of  one  or  more  attendance
    centers   in   a   school  district  otherwise  operating
    recognized schools, the claim of the  district  shall  be
    reduced   in  the  proportion  which  the  Average  Daily
    Attendance in the attendance center or  centers  bear  to
    the  Average  Daily Attendance in the school district.  A
    "recognized school" means any public school  which  meets
    the standards as established for recognition by the State
    Board  of  Education.   A  school  district or attendance
    center not having recognition status  at  the  end  of  a
    school term is entitled to receive State aid payments due
    upon   a  legal  claim  which  was  filed  while  it  was
    recognized.
         (b)  School district claims filed under this Section
    are subject to Sections 18-9, 18-10, and 18-12, except as
    otherwise provided in this Section.
         (c)  If a  school  district  operates  a  full  year
    school  under  Section  10-19.1, the general State aid to
    the school district shall  be  determined  by  the  State
    Board  of  Education  in  accordance with this Section as
    near as may be applicable.
         (d)  Claims  for  financial  assistance  under  this
    Section shall  not  be  recomputed  except  as  expressly
    provided under this Section.
    (4)  Except  as  provided in subsections (H) and (L), the
board of any district receiving any of  the  grants  provided
for  in  this  Section  may  apply those funds to any fund so
received  for  which  that  board  is  authorized   to   make
expenditures by law.
    School  districts  are  not  required  to exert a minimum
Operating Tax Rate in order to qualify for  assistance  under
this Section.
    (5)  As  used  in  this Section the following terms, when
capitalized, shall have the meaning ascribed herein:
         (a)  "Average Daily Attendance":  A count  of  pupil
    attendance   in  school,  averaged  as  provided  for  in
    subsection  (C)  and  utilized  in  deriving  per   pupil
    financial support levels.
         (b)  "Available  Local Resources":  A computation of
    local financial support, calculated on the basis  Average
    Daily  Attendance  and  derived  as  provided pursuant to
    subsection (D).
         (c)  "Corporate   Personal   Property    Replacement
    Taxes":  Funds paid to local school districts pursuant to
    "An  Act  in  relation  to  the  abolition  of ad valorem
    personal property tax and  the  replacement  of  revenues
    lost thereby, and amending and repealing certain Acts and
    parts  of Acts in connection therewith", certified August
    14, 1979, as amended (Public Act 81-1st S.S.-1).
         (d)  "Foundation Level":  A prescribed level of  per
    pupil  financial  support  as  provided for in subsection
    (B).
         (e)  "Operating  Tax  Rate":   All  school  district
    property  taxes  extended  for   all   purposes,   except
    community college educational purposes for the payment of
    tuition under Section 6-1 of the Public Community College
    Act,  Bond  and  Interest,  Summer  School, Rent, Capital
    Improvement, and Vocational Education Building purposes.

(B)  Foundation Level.
    (1)  The Foundation Level is a figure established by  the
State  representing  the minimum level of per pupil financial
support that should be available to  provide  for  the  basic
education  of each pupil in Average Daily Attendance.  As set
forth in this Section, each school  district  is  assumed  to
exert   a  sufficient  local  taxing  effort  such  that,  in
combination with the aggregate of general State financial aid
provided the  district,  an  aggregate  of  State  and  local
resources  are available to meet the basic education needs of
pupils in the district.
    (2)  For the 1998-1999 school year, the Foundation  Level
of  support  is  $4,225.   For the 1999-2000 school year, the
Foundation Level of support is  $4,325.   For  the  2000-2001
school year, the Foundation Level of support is $4,425.
    (3)  For  the  2001-2002 school year and each school year
thereafter, the Foundation Level of support is $4,425 or such
greater amount as may be established by law  by  the  General
Assembly.

(C)  Average Daily Attendance.
    (1)  For   purposes  of  calculating  general  State  aid
pursuant to  subsection  (E),  an  Average  Daily  Attendance
figure  shall  be  utilized.   The  Average  Daily Attendance
figure for formula calculation purposes shall be the  monthly
average  of the actual number of pupils in attendance of each
school district, as further averaged for the best 3 months of
pupil attendance for each school district.  In compiling  the
figures  for  the  number  of  pupils  in  attendance, school
districts  and  the  State  Board  of  Education  shall,  for
purposes of general State  aid  funding,  conform  attendance
figures to the requirements of subsection (F).
    (2)  The  Average  Daily  Attendance  figures utilized in
subsection (E) shall be the requisite attendance data for the
school year immediately preceding the school year  for  which
general State aid is being calculated.

(D)  Available Local Resources.
    (1)  For   purposes  of  calculating  general  State  aid
pursuant to subsection (E),  a  representation  of  Available
Local  Resources  per  pupil,  as  that  term  is defined and
determined in this subsection, shall be utilized.   Available
Local  Resources  per pupil shall include a calculated dollar
amount representing local school district revenues from local
property  taxes  and   from   Corporate   Personal   Property
Replacement  Taxes,  expressed  on  the  basis  of  pupils in
Average Daily Attendance.
    (2)  In determining  a  school  district's  revenue  from
local  property  taxes,  the  State  Board of Education shall
utilize the  equalized  assessed  valuation  of  all  taxable
property  of  each  school district as of September 30 of the
previous year.  The  equalized  assessed  valuation  utilized
shall  be  obtained  and determined as provided in subsection
(G).
    (3)  For school districts maintaining grades kindergarten
through 12, local property tax revenues per  pupil  shall  be
calculated   as  the  product  of  the  applicable  equalized
assessed valuation for the district multiplied by 3.00%,  and
divided  by  the  district's Average Daily Attendance figure.
For school districts maintaining grades kindergarten  through
8,  local property tax revenues per pupil shall be calculated
as the product of the applicable equalized assessed valuation
for the district multiplied by  2.30%,  and  divided  by  the
district's  Average  Daily  Attendance  figure.   For  school
districts maintaining grades 9 through 12, local property tax
revenues per pupil shall be the applicable equalized assessed
valuation of the district multiplied by 1.20%, and divided by
the district's Average Daily Attendance figure.
    (4)  The  Corporate  Personal  Property Replacement Taxes
paid to each school district during the calendar year 2 years
before the calendar year  in  which  a  school  year  begins,
divided  by  the  Average  Daily  Attendance  figure for that
district, shall be added to the local property  tax  revenues
per  pupil  as  derived by the application of the immediately
preceding paragraph (3).  The sum of these per pupil  figures
for  each  school  district  shall constitute Available Local
Resources as that term is utilized in subsection (E)  in  the
calculation of general State aid.

(E)  Computation of General State Aid.
    (1)  For  each  school  year, the amount of general State
aid allotted to a school district shall be  computed  by  the
State Board of Education as provided in this subsection.
    (2)  For  any  school  district for which Available Local
Resources per pupil is less than the product  of  0.93  times
the  Foundation  Level,  general  State aid for that district
shall be calculated as an  amount  equal  to  the  Foundation
Level  minus  Available  Local  Resources,  multiplied by the
Average Daily Attendance of the school district.
    (3)  For any school district for  which  Available  Local
Resources  per  pupil is equal to or greater than the product
of 0.93 times the Foundation Level and less than the  product
of 1.75 times the Foundation Level, the general State aid per
pupil  shall  be a decimal proportion of the Foundation Level
derived  using  a  linear  algorithm.   Under   this   linear
algorithm,  the  calculated general State aid per pupil shall
decline  in  direct  linear  fashion  from  0.07  times   the
Foundation  Level  for a school district with Available Local
Resources equal to the product of 0.93 times  the  Foundation
Level,  to  0.05  times  the  Foundation  Level  for a school
district with Available Local Resources equal to the  product
of  1.75  times  the  Foundation  Level.   The  allocation of
general State  aid  for  school  districts  subject  to  this
paragraph  3  shall  be  the calculated general State aid per
pupil figure multiplied by the Average  Daily  Attendance  of
the school district.
    (4)  For  any  school  district for which Available Local
Resources per pupil equals or exceeds  the  product  of  1.75
times  the  Foundation  Level,  the general State aid for the
school district shall be calculated as the  product  of  $218
multiplied  by  the  Average  Daily  Attendance of the school
district.

(F)  Compilation of Average Daily Attendance.
    (1)  Each school district shall, by July 1 of each  year,
submit  to  the State Board of Education, on forms prescribed
by the State Board of Education, attendance figures  for  the
school  year  that began in the preceding calendar year.  The
attendance information  so  transmitted  shall  identify  the
average daily attendance figures for each month of the school
year,  except  that any days of attendance in August shall be
added to the month of September and any days of attendance in
June shall be added to the month of May.
    Except as otherwise provided in  this  Section,  days  of
attendance  by  pupils  shall be counted only for sessions of
not less than 5 clock hours of  school  work  per  day  under
direct  supervision  of:  (i)  teachers, or (ii) non-teaching
personnel   or   volunteer   personnel   when   engaging   in
non-teaching  duties  and  supervising  in  those   instances
specified in subsection (a) of Section 10-22.34 and paragraph
10  of  Section 34-18, with pupils of legal school age and in
kindergarten and grades 1 through 12.
    Days of attendance by tuition pupils shall be  accredited
only  to  the  districts that pay the tuition to a recognized
school.
    (2)  Days of attendance by pupils of less  than  5  clock
hours  of school shall be subject to the following provisions
in the compilation of Average Daily Attendance.
         (a)  Pupils regularly enrolled in  a  public  school
    for  only  a part of the school day may be counted on the
    basis of 1/6 day for every class hour of  instruction  of
    40 minutes or more attended pursuant to such enrollment.
         (b)  Days  of  attendance  may  be less than 5 clock
    hours on the opening and closing of the school term,  and
    upon  the first day of pupil attendance, if preceded by a
    day  or  days  utilized  as  an  institute  or  teachers'
    workshop.
         (c)  A session of 4  or  more  clock  hours  may  be
    counted  as a day of attendance upon certification by the
    regional  superintendent,  and  approved  by  the   State
    Superintendent  of  Education  to  the  extent  that  the
    district has been forced to use daily multiple sessions.
         (d)  A  session  of  3  or  more  clock hours may be
    counted as a day of attendance (1) when the remainder  of
    the school day or at least 2 hours in the evening of that
    day  is  utilized  for an in-service training program for
    teachers, up to a maximum of 5 days per  school  year  of
    which  a maximum of 4 days of such 5 days may be used for
    parent-teacher conferences, provided a district  conducts
    an  in-service  training  program  for teachers which has
    been approved by the State Superintendent  of  Education;
    or,  in  lieu of 4 such days, 2 full days may be used, in
    which event each such day may be  counted  as  a  day  of
    attendance;  and  (2)  when  days  in  addition  to those
    provided in item (1) are scheduled by a  school  pursuant
    to  its  school improvement plan adopted under Article 34
    or its revised or amended school improvement plan adopted
    under Article 2, provided that (i) such sessions of 3  or
    more  clock  hours  are  scheduled  to  occur  at regular
    intervals, (ii) the remainder of the school days in which
    such sessions occur are utilized for in-service  training
    programs   or  other  staff  development  activities  for
    teachers, and (iii) a sufficient  number  of  minutes  of
    school  work under the direct supervision of teachers are
    added to the school days between such regularly scheduled
    sessions to  accumulate  not  less  than  the  number  of
    minutes  by  which such sessions of 3 or more clock hours
    fall short of 5 clock hours. Any full days used  for  the
    purposes  of  this  paragraph shall not be considered for
    computing average daily attendance.  Days  scheduled  for
    in-service    training    programs,   staff   development
    activities,  or   parent-teacher   conferences   may   be
    scheduled  separately  for  different  grade  levels  and
    different attendance centers of the district.
         (e)  A  session  of  not  less  than  one clock hour
    teaching of hospitalized or homebound pupils  on-site  or
    by  telephone  to the classroom may be counted as 1/2 day
    of attendance, however these pupils  must  receive  4  or
    more  clock hours of instruction to be counted for a full
    day of attendance.
         (f)  A session of at least  4  clock  hours  may  be
    counted  as  a  day of attendance for first grade pupils,
    and pupils in full day kindergartens, and a session of  2
    or  more hours may be counted as 1/2 day of attendance by
    pupils in kindergartens which provide  only  1/2  day  of
    attendance.
         (g)  For  children  with  disabilities who are below
    the age of 6 years and who cannot attend 2 or more  clock
    hours  because  of  their  disability  or  immaturity,  a
    session of not less than one clock hour may be counted as
    1/2  day  of  attendance; however for such children whose
    educational needs so require a session of 4 or more clock
    hours may be counted as a full day of attendance.
         (h)  A recognized kindergarten  which  provides  for
    only  1/2  day of attendance by each pupil shall not have
    more than 1/2 day of attendance counted  in  any  1  day.
    However, kindergartens may count 2 1/2 days of attendance
    in  any  5 consecutive school days.  When a pupil attends
    such a kindergarten for 2 half days  on  any  one  school
    day,  the  pupil  shall  have  the following day as a day
    absent from school, unless the  school  district  obtains
    permission  in  writing  from the State Superintendent of
    Education.  Attendance at kindergartens which provide for
    a full day of attendance by each pupil shall  be  counted
    the  same  as attendance by first grade pupils.  Only the
    first year of attendance in  one  kindergarten  shall  be
    counted,  except  in  case  of  children  who entered the
    kindergarten  in  their  fifth  year  whose   educational
    development  requires  a  second  year of kindergarten as
    determined under the rules and regulations of  the  State
    Board of Education.

(G)  Equalized Assessed Valuation Data.
    (1)  For  purposes  of the calculation of Available Local
Resources required pursuant  to  subsection  (D),  the  State
Board  of  Education  shall  secure  from  the  Department of
Revenue the value as equalized or assessed by the  Department
of  Revenue  of all taxable property of every school district
together with the applicable tax rate used in extending taxes
for the funds of the district  as  of  September  30  of  the
previous year.
    This equalized assessed valuation, as adjusted further by
the requirements of this subsection, shall be utilized in the
calculation of Available Local Resources.
    (2)  The  equalized  assessed  valuation in paragraph (1)
shall be adjusted, as applicable, in the following manner:
         (a)  For the purposes of calculating State aid under
    this Section, with  respect  to  any  part  of  a  school
    district  within  a redevelopment project area in respect
    to  which  a  municipality  has  adopted  tax   increment
    allocation   financing  pursuant  to  the  Tax  Increment
    Allocation Redevelopment Act, Sections 11-74.4-1  through
    11-74.4-11   of   the  Illinois  Municipal  Code  or  the
    Industrial Jobs Recovery Law, Sections 11-74.6-1  through
    11-74.6-50 of the Illinois Municipal Code, no part of the
    current  equalized  assessed  valuation  of real property
    located in any such project area which is attributable to
    an increase above the total  initial  equalized  assessed
    valuation  of  such property shall be used as part of the
    equalized assessed valuation of the district, until  such
    time  as  all redevelopment project costs have been paid,
    as provided in Section 11-74.4-8  of  the  Tax  Increment
    Allocation  Redevelopment Act or in Section 11-74.6-35 of
    the Industrial Jobs Recovery Law.  For the purpose of the
    equalized assessed valuation of the district,  the  total
    initial  equalized  assessed  valuation  or  the  current
    equalized  assessed  valuation, whichever is lower, shall
    be used until such  time  as  all  redevelopment  project
    costs have been paid.
         (b)  The  real property equalized assessed valuation
    for a school district shall be  adjusted  by  subtracting
    from  the real property value as equalized or assessed by
    the Department of Revenue  for  the  district  an  amount
    computed by dividing the amount of any abatement of taxes
    under  Section  18-170  of the Property Tax Code by 3.00%
    for a district maintaining grades kindergarten through 12
    or  by  2.30%   for   a   district   maintaining   grades
    kindergarten  through  8,  or  by  1.20%  for  a district
    maintaining grades 9 through 12 and adjusted by an amount
    computed by dividing the amount of any abatement of taxes
    under subsection (a) of Section 18-165  of  the  Property
    Tax  Code  by the same percentage rates for district type
    as specified in this subparagraph (c).

(H)  Supplemental General State Aid.
    (1)  In addition  to  the  general  State  aid  a  school
district  is  allotted pursuant to subsection (E), qualifying
school districts shall receive a grant, paid  in  conjunction
with   a  district's  payments  of  general  State  aid,  for
supplemental general State aid based upon  the  concentration
level  of  children  from  low-income  households  within the
school district. Supplemental State aid grants  provided  for
school  districts under this subsection shall be appropriated
for distribution to school districts as part of the same line
item in which the  general  State  financial  aid  of  school
districts is appropriated under this Section. For purposes of
this  subsection,  the  term "Low-Income Concentration Level"
shall be the low-income eligible pupil count  from  the  most
recently  available  federal  census  divided  by the Average
Daily Attendance of the school district.
    (2)  Supplemental general  State  aid  pursuant  to  this
subsection shall be provided as follows:
         (a)  For  any  school  district  with  a  Low Income
    Concentration Level of at least 20% and  less  than  35%,
    the grant for any school year shall be $800 multiplied by
    the low income eligible pupil count.
         (b)  For  any  school  district  with  a  Low Income
    Concentration Level of at least 35% and  less  than  50%,
    the  grant  for the 1998-1999 school year shall be $1,100
    multiplied by the low income eligible pupil count.
         (c)  For any  school  district  with  a  Low  Income
    Concentration  Level  of  at least 50% and less than 60%,
    the grant for the 1998-99 school  year  shall  be  $1,500
    multiplied by the low income eligible pupil count.
         (d)  For  any  school  district  with  a  Low Income
    Concentration Level of 60% or more,  the  grant  for  the
    1998-99 school year shall be $1,900 multiplied by the low
    income eligible pupil count.
         (e)  For  the  1999-2000  school year, the per pupil
    amount specified in  subparagraphs  (b),  (c),  and  (d),
    immediately  above  shall be increased by $100 to $1,200,
    $1,600, and $2,000, respectively.
         (f)  For the 2000-2001 school year,  the  per  pupil
    amounts  specified  in  subparagraphs  (b),  (c)  and (d)
    immediately above shall be increased to  $1,230,  $1,640,
    and $2,050, respectively.
    (3)  School districts with an Average Daily Attendance of
more  than  1,000  and  less  than  50,000  that  qualify for
supplemental general State aid pursuant  to  this  subsection
shall  submit a plan to the State Board of Education prior to
October 30 of each year for the use of  the  funds  resulting
from  this  grant  of  supplemental general State aid for the
improvement of instruction in  which  priority  is  given  to
meeting  the education needs of disadvantaged children.  Such
plan  shall  be  submitted  in  accordance  with  rules   and
regulations promulgated by the State Board of Education.
    (4)  School districts with an Average Daily Attendance of
50,000  or  more  that qualify for supplemental general State
aid  pursuant  to  this  subsection  shall  be  required   to
distribute  from funds available pursuant to this Section, no
less than  $261,000,000  in  accordance  with  the  following
requirements:
         (a)  The  required  amounts  shall be distributed to
    the attendance centers within the district in  proportion
    to  the  number  of  pupils  enrolled  at each attendance
    center who are eligible to receive free or  reduced-price
    lunches  or  breakfasts under the federal Child Nutrition
    Act of 1966 and  under  the  National  School  Lunch  Act
    during the immediately preceding school year.
         (b)  The   distribution   of   these   portions   of
    supplemental  and  general  State  aid  among  attendance
    centers  according  to  these  requirements  shall not be
    compensated for or  contravened  by  adjustments  of  the
    total  of  other  funds  appropriated  to  any attendance
    centers, and the Board of Education shall utilize funding
    from one or several sources in order to  fully  implement
    this provision annually prior to the opening of school.
         (c)  Each attendance center shall be provided by the
    school  district  a  distribution of noncategorical funds
    and other categorical funds to which an attendance center
    is entitled under law in order that the general State aid
    and  supplemental   general   State   aid   provided   by
    application  of  this  subsection supplements rather than
    supplants the noncategorical funds and other  categorical
    funds  provided  by the school district to the attendance
    centers.
         (d)  Any funds made available under this  subsection
    that  by  reason of the provisions of this subsection are
    not required to be allocated and provided  to  attendance
    centers  may be used and appropriated by the board of the
    district for any lawful school purpose.
         (e)  Funds received by an attendance center pursuant
    to this subsection shall be used by the attendance center
    at the discretion  of  the  principal  and  local  school
    council for programs to improve educational opportunities
    at  qualifying schools through the following programs and
    services: early childhood education, reduced  class  size
    or  improved adult to student classroom ratio, enrichment
    programs, remedial assistance, attendance improvement and
    other   educationally   beneficial   expenditures   which
    supplement the regular and basic programs  as  determined
    by  the  State  Board of Education.  Funds provided shall
    not be expended for any political or lobbying purposes as
    defined by board rule.
         (f)  Each district subject to the provisions of this
    subdivision (H)(4) shall submit  an  acceptable  plan  to
    meet  the educational needs of disadvantaged children, in
    compliance with the requirements of  this  paragraph,  to
    the  State  Board  of  Education prior to July 15 of each
    year. This plan shall be consistent with the decisions of
    local school councils concerning the  school  expenditure
    plans  developed  in  accordance  with  part 4 of Section
    34-2.3.  The State Board shall approve or reject the plan
    within 60 days after its  submission.   If  the  plan  is
    rejected,  the  district  shall  give  written  notice of
    intent  to  modify  the  plan  within  15  days  of   the
    notification of rejection and then submit a modified plan
    within  30  days  after the date of the written notice of
    intent to modify.  Districts  may  amend  approved  plans
    pursuant  to  rules  promulgated  by  the  State Board of
    Education.
         Upon notification by the State  Board  of  Education
    that  the district has not submitted a plan prior to July
    15 or a modified plan within the  time  period  specified
    herein,  the  State  aid  funds  affected by that plan or
    modified plan shall be withheld by  the  State  Board  of
    Education until a plan or modified plan is submitted.
         If  the  district  fails  to distribute State aid to
    attendance centers in accordance with an  approved  plan,
    the  plan for the following year shall allocate funds, in
    addition  to  the  funds  otherwise  required   by   this
    subsection,   to  those  attendance  centers  which  were
    underfunded during the previous year in amounts equal  to
    such underfunding.
         For  purposes  of  determining  compliance with this
    subsection in relation to the requirements of  attendance
    center  funding,  each district subject to the provisions
    of this subsection shall submit as a separate document by
    December 1 of each year a report of expenditure data  for
    the  prior  year  in  addition to any modification of its
    current plan.  If it is determined that there has been  a
    failure to comply with the expenditure provisions of this
    subsection  regarding  contravention  or supplanting, the
    State Superintendent of Education shall, within  60  days
    of  receipt  of  the  report, notify the district and any
    affected local school council.  The district shall within
    45 days of receipt of that notification inform the  State
    Superintendent of Education of the remedial or corrective
    action  to be taken, whether  by amendment of the current
    plan, if feasible, or by adjustment in the plan  for  the
    following  year.   Failure  to  provide  the  expenditure
    report  or  the  notification  of  remedial or corrective
    action in a timely manner shall result in  a  withholding
    of the affected funds.
         The  State Board of Education shall promulgate rules
    and regulations  to  implement  the  provisions  of  this
    subsection.   No  funds  shall  be  released  under  this
    subdivision (H)(4) to any district that has not submitted
    a  plan  that  has  been  approved  by the State Board of
    Education.

(I)  General State Aid for Newly Configured School Districts.
    (1)  For  a  new  school  district  formed  by  combining
property  included  totally  within  2  or  more   previously
existing  school  districts,  for its first year of existence
the general State aid  and  supplemental  general  State  aid
calculated  under  this Section shall be computed for the new
district and for the previously existing districts for  which
property is totally included within the new district.  If the
computation on the basis of the previously existing districts
is  greater,  a supplementary payment equal to the difference
shall be made for the first 4 years of existence of  the  new
district.
    (2)  For  a  school  district  which  annexes  all of the
territory of one or more entire other school  districts,  for
the   first  year  during  which  the  change  of  boundaries
attributable to such annexation  becomes  effective  for  all
purposes as determined under Section 7-9 or 7A-8, the general
State aid and supplemental general State aid calculated under
this  Section  shall be computed for the annexing district as
constituted after the annexation and  for  the  annexing  and
each annexed district as constituted prior to the annexation;
and  if  the  computation  on  the  basis of the annexing and
annexed districts as constituted prior to the  annexation  is
greater,  a  supplementary  payment  equal  to the difference
shall be made for the first  4  years  of  existence  of  the
annexing school district as constituted upon such annexation.
    (3)  For  2  or  more school districts which annex all of
the territory of one or more entire other  school  districts,
and  for 2 or more community unit districts which result upon
the division (pursuant to petition under  Section  11A-2)  of
one  or more other unit school districts into 2 or more parts
and which together include all of the parts into  which  such
other  unit  school district or districts are so divided, for
the  first  year  during  which  the  change  of   boundaries
attributable to such annexation or division becomes effective
for  all  purposes as determined under Section 7-9 or 11A-10,
as the case may be, the general State  aid  and  supplemental
general  State  aid  calculated  under  this Section shall be
computed  for  each  annexing  or   resulting   district   as
constituted  after  the  annexation  or division and for each
annexing and annexed district,  or  for  each  resulting  and
divided  district,  as constituted prior to the annexation or
division; and if the aggregate of the general State  aid  and
supplemental  general  State  aid  as  so  computed  for  the
annexing  or  resulting  districts  as  constituted after the
annexation or division is less  than  the  aggregate  of  the
general  State  aid  and supplemental general State aid as so
computed for the annexing and annexed districts, or  for  the
resulting  and divided districts, as constituted prior to the
annexation or division, then a supplementary payment equal to
the difference shall be made and allocated between  or  among
the annexing or resulting districts, as constituted upon such
annexation  or  division,  for  the  first  4  years of their
existence.  The total difference payment shall  be  allocated
between  or  among the annexing or resulting districts in the
same ratio as the pupil enrollment from that portion  of  the
annexed  or divided district or districts which is annexed to
or included in each such annexing or resulting district bears
to the total pupil enrollment  from  the  entire  annexed  or
divided  district  or  districts, as such pupil enrollment is
determined for the school year last ending prior to the  date
when  the change of boundaries attributable to the annexation
or division becomes effective for all purposes.   The  amount
of  the total difference payment and the amount thereof to be
allocated to the annexing or  resulting  districts  shall  be
computed  by  the  State  Board  of Education on the basis of
pupil enrollment and other data which shall be  certified  to
the State Board of Education, on forms which it shall provide
for  that  purpose, by the regional superintendent of schools
for each educational service region in which the annexing and
annexed districts, or resulting  and  divided  districts  are
located.
    (4)  Any supplementary payment made under this subsection
(I) shall be treated as separate from all other payments made
pursuant to this Section.

(J)  Supplementary Grants in Aid.
    (1)  Notwithstanding   any   other   provisions  of  this
Section, the amount of the aggregate  general  State  aid  in
combination  with  supplemental  general State aid under this
Section for which each school district is  eligible  for  the
1998-1999 school year shall be no less than the amount of the
aggregate  general State aid entitlement that was received by
the  district  under  Section  18-8  (exclusive  of   amounts
received  under  subsections 5(p) and 5(p-5) of that Section)
for the 1997-98 school year, pursuant to  the  provisions  of
that  Section  as it was then in effect. If a school district
qualifies to receive a supplementary payment made under  this
subsection  (J)  for the 1998-1999 school year, the amount of
the  aggregate  general  State  aid   in   combination   with
supplemental general State aid under this Section  which that
district   is  eligible  to  receive  for  each  school  year
subsequent to the 1998-1999 school year shall be no less than
the amount of the aggregate  general  State  aid  entitlement
that   was  received  by  the  district  under  Section  18-8
(exclusive of amounts received  under  subsections  5(p)  and
5(p-5)  of  that  Section)  for  the  1997-1998  school year,
pursuant to the provisions of that Section as it was then  in
effect.
    (2)  If,  as provided in paragraph (1) of this subsection
(J), a school district is to receive aggregate general  State
aid  in combination with supplemental general State aid under
this Section for the 1998-99 school year, or for the  1998-99
school  year and any subsequent school year, that in any such
school year is less than the amount of the aggregate  general
State  aid  entitlement  that  the  district received for the
1997-98 school year, the school district shall also  receive,
from  a  separate  appropriation  made  for  purposes of this
subsection (J), a supplementary payment that is equal to  the
amount  of  the difference in the aggregate State aid figures
as described in paragraph (1).
    (3)  If  the  amount   appropriated   for   supplementary
payments  to  school  districts  under this subsection (J) is
insufficient for that  purpose,  the  supplementary  payments
that  districts are to receive under this subsection shall be
prorated  according  to   the   aggregate   amount   of   the
appropriation made for purposes of this subsection.

(K)  Grants to Laboratory and Alternative Schools.
    In  calculating  the  amount  to be paid to the governing
board of a  public  university  that  operates  a  laboratory
school  under  this Section or to any alternative school that
is operated by a regional superintendent, the State Board  of
Education  shall  require by rule such reporting requirements
as it deems necessary.
    As used in this  Section,  "laboratory  school"  means  a
public  school  which  is  created  and  operated by a public
university and approved by the State Board of Education.  The
governing board of a public university which  receives  funds
from  the  State  Board  under  this  subsection  (K) may not
increase the number of students enrolled  in  its  laboratory
school  from  a  single district, if that district is already
sending 50 or more students, except under a mutual  agreement
between the school board of a student's district of residence
and  the  university which operates the laboratory school.  A
laboratory school may not  have  more  than  1,000  students,
excluding  students  with disabilities in a special education
program.
    As used in this Section,  "alternative  school"  means  a
public  school  which  is  created and operated by a Regional
Superintendent of Schools and approved by the State Board  of
Education.  Such  alternative  schools  may  offer courses of
instruction for which  credit  is  given  in  regular  school
programs,  courses  to  prepare  students for the high school
equivalency testing program or  vocational  and  occupational
training.
    Each  laboratory  and  alternative  school shall file, on
forms provided by the State Superintendent of  Education,  an
annual  State  aid  claim  which  states  the  Average  Daily
Attendance  of  the  school's  students by month.  The best 3
months' Average Daily Attendance shall be computed  for  each
school.  The  general State aid entitlement shall be computed
by multiplying the applicable Average Daily Attendance by the
Foundation Level as determined under this Section.

(L)  Payments,   Additional   Grants   in   Aid   and   Other
Requirements.
    (1)  For a school district operating under the  financial
supervision  of  an  Authority created under Article 34A, the
general State aid otherwise payable to  that  district  under
this  Section,  but  not  the supplemental general State aid,
shall be reduced by an amount equal to  the  budget  for  the
operations  of the Authority as certified by the Authority to
the State Board of Education, and an  amount  equal  to  such
reduction  shall  be  paid  to the Authority created for such
district for its operating expenses in the manner provided in
Section 18-11.  The remainder of general State school aid for
any such district shall be paid in  accordance  with  Article
34A  when  that Article provides for a disposition other than
that provided by this Article.
    (2)  Impaction.  Impaction  payments  shall  be  made  as
provided for in Section 18-4.2.
    (3)  Summer school.  Summer school payments shall be made
as provided in Section 18-4.3.

(M)  Education Funding Advisory Board.
    The Education Funding Advisory Board, hereinafter in this
subsection (M) referred to as the "Board", is hereby created.
The Board shall consist of 5 members who are appointed by the
Governor,  by  and with the advice and consent of the Senate.
The  members  appointed  shall  include  representatives   of
education,  business,  and  the  general  public.  One of the
members so appointed shall be designated by the  Governor  at
the  time  the  appointment is made as the chairperson of the
Board. The initial members of the Board may be appointed  any
time after the effective date of this amendatory Act of 1997.
The  regular  term of each member of the Board shall be for 4
years from the third Monday of January of the year  in  which
the  term  of the member's appointment is to commence, except
that of the 5 initial  members  appointed  to  serve  on  the
Board,  the  member who is appointed as the chairperson shall
serve for a term that commences on the date  of  his  or  her
appointment and expires on the third Monday of January, 2002,
and  the  remaining  4  members,  by  lots drawn at the first
meeting of the Board that is held after  all  5  members  are
appointed,  shall  determine  2  of their number to serve for
terms  that  commence  on  the  date  of   their   respective
appointments and expire on the third Monday of January, 2001,
and 2 of their number to serve for terms that commence on the
date of their respective appointments and expire on the third
Monday  of  January, 2000.  All members appointed to serve on
the Board shall serve until their respective  successors  are
appointed  and  confirmed.   Vacancies shall be filled in the
same manner  as  original  appointments.   If  a  vacancy  in
membership  occurs  at  a  time  when  the  Senate  is not in
session, the Governor  shall  make  a  temporary  appointment
until  the  next  meeting of the Senate, when he or she shall
appoint, by and with the advice and consent of the Senate,  a
person  to  fill  that membership for the unexpired term.  If
the Senate is not in session when  the  initial  appointments
are  made, those appointments shall be made as in the case of
vacancies.
    The Education Funding  Advisory  Board  shall  be  deemed
established,   and  the  initial  members  appointed  by  the
Governor to serve as members of the Board shall take  office,
on the date that the Governor makes his or her appointment of
the  fifth initial member of the Board, whether those initial
members  are  then  serving  pursuant  to   appointment   and
confirmation  or  pursuant to temporary appointments that are
made by the Governor as in the case of vacancies.
    The State Board of Education  shall  provide  such  staff
assistance  to  the  Education  Funding  Advisory Board as is
reasonably required for the proper performance by  the  Board
of its responsibilities.
    For  school  years  after  the 2000-2001 school year, the
Education Funding Advisory Board, in  consultation  with  the
State  Board  of  Education,  shall  make  recommendations as
provided in this subsection (M) to the General  Assembly  for
the foundation level under subdivision (B)(3) of this Section
and  for the supplemental general State aid grant level under
subsection (H)  of  this  Section  for  districts  with  high
concentrations  of  children  from  poverty.  The recommended
foundation level shall be determined based on  a  methodology
which   incorporates  the  basic  education  expenditures  of
low-spending schools exhibiting  high  academic  performance.
The   Education   Funding  Advisory  Board  shall  make  such
recommendations to the General Assembly on January 1  of  odd
numbered years, beginning January 1, 2001.

(N)  General State Aid Adjustment Grant.
    (1)  Any   school   district   subject  to  property  tax
extension limitations as imposed under the provisions of  the
Property  Tax  Extension  Limitation Law shall be entitled to
receive, subject to the qualifications  and  requirements  of
this  subsection,  a  general  State  aid  adjustment  grant.
Eligibility  for  this grant shall be determined on an annual
basis and claims for grant payments shall be paid subject  to
appropriations   made   specific  to  this  subsection.   For
purposes of this subsection the following  terms  shall  have
the following meanings:
    "Budget  Year":   The school year for which general State
aid is calculated and awarded under subsection (E).
    "Current Year":  The school  year  immediately  preceding
the Budget Year.
    "Base  Tax  Year":   The  property  tax levy year used to
calculate the Budget Year allocation of general State aid.
    "Preceding  Tax  Year":   The  property  tax  levy   year
immediately preceding the Base Tax Year.
    "Extension   Limitation   Ratio":   A   numerical  ratio,
certified by a school district's County Clerk, in  which  the
numerator  is  the  Base  Tax  Year's  tax  extension  amount
resulting  from the Operating Tax Rate and the denominator is
the Preceding Tax Year's tax extension amount resulting  from
the Operating Tax Rate.
    "Operating  Tax  Rate": The operating tax rate as defined
in subsection (A).
    (2)  To qualify for a general State aid adjustment grant,
a school district must meet all of the following  eligibility
criteria for each Budget Year for which a grant is claimed:
         (a)  The  Operating  Tax Rate of the school district
    in the Preceding Tax Year was at least 3.00% in the  case
    of  a  school  district  maintaining  grades kindergarten
    through 12, at least  2.30%  in  the  case  of  a  school
    district maintaining grades kindergarten through 8, or at
    least  1.41% in the case of a school district maintaining
    grades 9 through 12.
         (b)  The Operating Tax Rate of the  school  district
    for  the  Base  Tax  Year was reduced by the Clerk of the
    County as a result of the requirements  of  the  Property
    Tax Extension Limitation Law.
         (c)  The  Available Local Resources per pupil of the
    school district as calculated pursuant to subsection  (D)
    using the Base Tax Year are less than the product of 1.75
    times the Foundation Level for the Budget Year.
         (d)  The  school  district  has  filed  a proper and
    timely claim for a general State aid adjustment grant  as
    required under this subsection.
    (3)  A  claim  for grant assistance under this subsection
shall be filed with the State Board of Education on or before
January 1 of the Current Year for  a  grant  for  the  Budget
Year.   The  claim  shall  be made on forms prescribed by the
State Board of Education and must be accompanied by a written
statement from the Clerk of the County, certifying:
         (a)  That the school district has its extension  for
    the Base Tax Year reduced as a result of the Property Tax
    Extension Limitation Law.
         (b)  That  the  Operating  Tax  Rate  of  the school
    district for the Preceding Tax  Year  met  the  tax  rate
    requirements of subdivision (N)(2) of this Section.
         (c)  The  Extension Limitation Ratio as that term is
    defined in this subsection.
    (4)  On or before August 1 of the Budget Year  the  State
Board  of Education shall calculate, for all school districts
meeting the other requirements of this subsection, the amount
of the general State aid adjustment grant, if any,  that  the
school  districts are eligible to receive in the Budget Year.
The amount of the general State aid adjustment grant shall be
calculated as follows:
         (a)  Determine the school district's  general  State
    aid  grant  for the Budget Year as provided in accordance
    with the provisions of subsection (E).
         (b)  Determine the school district's adjusted  level
    of  general  State aid by utilizing in the calculation of
    Available Local Resources an equalized assessed valuation
    that is the equalized assessed valuation of the Preceding
    Tax Year multiplied by the Extension Limitation Ratio.
         (c)  Subtract the sum derived  in  subparagraph  (a)
    from  the sum derived in subparagraph (b).  If the result
    is a positive number, that amount shall  be  the  general
    State  aid adjustment grant that the district is eligible
    to receive.
    (5)  The State Board of Education shall  in  the  Current
Year,  based upon claims filed in the Current Year, recommend
to the General  Assembly  an  appropriation  amount  for  the
general  State aid adjustment grants to be made in the Budget
Year.
    (6)  Claims for general State aid adjustment grants shall
be paid in a lump sum on or before January 1  of  the  Budget
Year  only  from  appropriations made by the General Assembly
expressly for claims under this subsection.  No  such  claims
may  be  paid from amounts appropriated for any other purpose
provided for under this  Section.   In  the  event  that  the
appropriation   for   claims   under   this   subsection   is
insufficient  to  meet  all  Budget Year claims for a general
State aid adjustment grant, the appropriation available shall
be proportionately prorated by the State Board  of  Education
amongst all districts filing for and entitled to payments.
    (7)  The  State  Board  of Education shall promulgate the
required claim forms and rules  necessary  to  implement  the
provisions of this subsection.

(O)  References.
    (1)  References in other laws to the various subdivisions
of Section 18-8 as that Section existed before its repeal and
replacement  by this Section 18-8.05 shall be deemed to refer
to the corresponding provisions of this Section  18-8.05,  to
the extent that those references remain applicable.
    (2)  References  in  other  laws to State Chapter 1 funds
shall be deemed to refer to the  supplemental  general  State
aid provided under subsection (H) of this Section.

    (105 ILCS 5/18-8.2) (from Ch. 122, par. 18-8.2)
    Sec.  18-8.2.   Supplementary  State  aid for new and for
certain annexing districts.
    (a) After the formation of a new district, a  computation
shall  be  made  to  determine  the  difference  between  the
salaries   effective  in  each  of  the  previously  existing
districts on June 30,  prior  to  the  creation  of  the  new
district.  For the first 4 3 years after the formation of the
new  district or if the new district was formed after October
31, 1982 and prior to the effective date of  this  amendatory
Act  of  1985,  for  the  3  years immediately following such
effective date, a supplementary State aid reimbursement shall
be paid to the new district equal to the  difference  between
the  sum  of  the salaries earned by each of the certificated
members of the new district while  employed  in  one  of  the
previously  existing  districts  during  the year immediately
preceding the formation of the new district and  the  sum  of
the  salaries those certificated members would have been paid
during the year immediately prior to the formation of the new
district if placed on the salary schedule of  the  previously
existing district with the highest salary schedule.
    (b)  After  the territory of one or more school districts
is annexed by one or more other school  districts,  or  after
the  division (pursuant to petition under Section 11A-2) of a
unit school district or districts into 2 or more parts  which
all  are included in 2 or more other community unit districts
resulting upon that division, a computation shall be made  to
determine  the  difference  between the salaries effective in
each such annexed or divided district and in the annexing  or
resulting district or districts as they each were constituted
on  June  30 preceding the date when the change of boundaries
attributable to such annexation or division became  effective
for  all  purposes  as  determined under Section 7-9, 7A-8 or
11A-10.  For the first 4 3 years after any such annexation or
division, a supplementary State aid  reimbursement  shall  be
paid  to  each  annexing or resulting district as constituted
after the annexation or  division  equal  to  the  difference
between  the  sum  of  the  salaries  earned  by  each of the
certificated members of such annexing or  resulting  district
as   constituted  after  the  annexation  or  division  while
employed in an annexed or annexing district, or in a  divided
or  resulting district, during the year immediately preceding
the annexation or division, and the sum of the salaries those
certificated  members  would  have  been  paid  during   such
immediately  preceding  year if placed on the salary schedule
of whichever  of  such  annexing  or  annexed  districts,  or
resulting  or  divided  districts,  had  the  highest  salary
schedule during such immediately preceding year.
    (c)  Such  supplementary State aid reimbursement shall be
treated as separate from all other payments made pursuant  to
Section  18-8  or  18-8.05. In the case of the formation of a
new district, reimbursement shall begin during the first year
of operation of the new district;  and  in  the  case  of  an
annexation  of  the territory of one or more school districts
by one or  more  other  school  districts,  or  the  division
(pursuant  to  petition under Section 11A-2) of a unit school
district or districts into 2 or  more  parts  which  all  are
included   in  2  or  more  other  community  unit  districts
resulting  upon  that  division,  reimbursement  shall  begin
during  the  first  year  when  the  change   in   boundaries
attributable to such annexation or division becomes effective
for  all purposes as determined pursuant to Section 7-9, 7A-8
or 11A-10.  Each year any such  new,  annexing  or  resulting
district,  as  the  case  may  be,  is  entitled  to  receive
reimbursement,  the  number of eligible certified members who
are employed on October 1  in  any  such  district  shall  be
certified to the State Board of Education on prescribed forms
by October 15 and payment shall be made on or before November
15 of that year.
    (d)  If  a unit school district annexes all the territory
of another unit school district effective  for  all  purposes
pursuant  to  Section 7-9 on July 1, 1988, and if part of the
annexed territory is detached within 90 days  after  July  1,
1988,  then  the detachment shall be disregarded in computing
the supplementary State aid reimbursements under this Section
for the entire 3 year period and the supplementary State  aid
reimbursements   shall  not  be  diminished  because  of  the
detachment.
    (e)  The changes made by this amendatory Act of 1989  are
intended  to  be retroactive and applicable to any annexation
taking effect after August 1, 1987.
(Source: P.A. 86-13; 86-1334.)

    (105 ILCS 5/21-0.01 new)
    Sec. 21-0.01.  Powers after January 1, 1998. Beginning on
January 1, 1998 and thereafter, the State Board of Education,
in consultation with the State Teacher  Certification  Board,
shall  have  the  power  and  authority  to  do  all  of  the
following:
         (1)  set  standards  for  teaching,  supervising, or
    holding  other  certificated  employment  in  the  public
    schools, and  administer  the  certification  process  as
    provided  in  this  Article;  provided, however, that the
    State  Teacher  Certification  Board  shall   be   solely
    responsible   for   the   renewal  of  Standard  Teaching
    Certificates as provided in Section 21-2;
         (2)  approve and evaluate teacher and  administrator
    preparation programs;
         (3)  enter   into   agreements   with  other  states
    relative  to   reciprocal   approval   of   teacher   and
    administrator preparation programs;
         (4)  establish  standards  for  the  issuance of new
    types of certificates; and
         (5)  take  such  other  action   relating   to   the
    improvement  of instruction in the public schools through
    teacher education and professional development  and  that
    attracts   qualified  candidates  into  teacher  training
    programs as is appropriate and consistent with applicable
    laws.

    (105 ILCS 5/21-1a) (from Ch. 122, par. 21-1a)
    Sec. 21-1a. Tests required for certification.
    (a)  After  July  1,  1988,  in  addition  to  all  other
requirements,  early  childhood,  elementary,  special,  high
school, school service personnel, or, except as  provided  in
Section  34-6, administrative certificates shall be issued to
persons who have satisfactorily passed a test of basic skills
and subject matter knowledge.  The tests of basic skills  and
subject  matter  knowledge shall be the tests which from time
to time are designated by the State  Board  of  Education  in
consultation  with  the State Teacher Certification Board and
may be tests prepared by an educational testing  organization
or  tests  designed  by  the  State  Board  of  Education  in
consultation with the State Teacher Certification Board.  The
areas to be covered by the test of basic skills shall include
the   basic   skills   of   reading,   writing,  grammar  and
mathematics.  The test  of  subject  matter  knowledge  shall
assess  content  knowledge in the specific subject field. The
tests shall be designed to be racially neutral to assure that
no person  in  taking  the  tests  is  thereby  discriminated
against on the basis of race, color, national origin or other
factors  unrelated  to  the  person's ability to perform as a
certificated employee.  The score required to pass the  tests
of  basic  skills and subject matter knowledge shall be fixed
by the State Board of  Education  in  consultation  with  the
State  Teacher  Certification Board.  The tests shall be held
not fewer than 3 times a year at such time and place  as  may
be designated by the State Board of Education in consultation
with the State Teacher Certification Board.
    (b)  Except  as  provided in Section 34-6, the provisions
of subsection (a) of this Section shall apply equally in  any
school  district  subject  to  Article  34, provided that the
State Board of Education shall determine  which  certificates
issued  under Sections 34-8.1 and 34-83 prior to July 1, 1988
are comparable to any early childhood certificate, elementary
school  certificate,   special   certificate,   high   school
certificate,   school   service   personnel   certificate  or
administrative certificate issued under this  Article  as  of
July 1, 1988.
    (c)  A  person  who holds an early childhood, elementary,
special, high school or school service personnel  certificate
issued  under  this  Article on or at any time before July 1,
1988, including  a  person  who  has  been  issued  any  such
certificate  pursuant to Section 21-11.1 or in exchange for a
comparable  certificate  theretofore  issued  under   Section
34-8.1  or  Section  34-83,  shall not be required to take or
pass the tests in order to thereafter have  such  certificate
renewed.
    (d)  The  State  Board  of Education in consultation with
the State Teacher Certification Board shall conduct  a  pilot
administration  of  the  tests  by  administering the test to
students completing teacher education programs in the 1986-87
school year for the purpose of  determining  the  effect  and
impact of testing candidates for certification.
    (e)  The rules and regulations developed to implement the
required  test  of  basic skills and subject matter knowledge
shall include the requirements of subsections (a),  (b),  and
(c)  and  shall  include  specific regulations to govern test
selection; test validation and  determination  of  a  passing
score;    administration   of   the   tests;   frequency   of
administration;  applicant  fees;  frequency  of  applicants'
taking the tests; the years for which a score is valid;  and,
waiving  certain additional tests for additional certificates
to individuals who have satisfactorily  passed  the  test  of
basic  skills  and  subject  matter  knowledge as required in
subsection (a). The State Board of Education  shall  provide,
by  rule,  specific  policies  that  assure uniformity in the
difficulty level of each form of the basic  skills  test  and
each  subject  matter  knowledge  test  from test-to-test and
year-to-year.  The State Board of Education shall also set  a
passing score for the tests.
    (f)  The  State  Teacher  Certification Board may issue a
nonrenewable temporary certificate between July 1,  1988  and
August  31,  1988  to individuals who have taken the tests of
basic skills and subject matter knowledge prescribed by  this
Section  but have not received such test scores by August 31,
1988.  Such temporary certificates shall expire  on  December
31, 1988.
    (g)  Beginning  January  1,  1999,  the  State  Board  of
Education,   in   consultation   with   the   State   Teacher
Certification  Board,  shall  implement  and administer a new
system  of  certification  for  teachers  in  the  State   of
Illinois.  The State Board of Education, in consultation with
the  State  Teacher  Certification  Board,  shall  design and
implement a system of examinations and various other criteria
which shall be required prior  to  the  issuance  of  Initial
Teaching  Certificates  and  Standard  Teaching Certificates.
These examinations and indicators shall be based on  national
professional  teaching  standards, as determined by the State
Board of Education, in consultation with  the  State  Teacher
Certification  Board.  The State Board of Education may adopt
any and all regulations necessary to implement and administer
this Section.
    (h)  The State Board of Education  shall  report  to  the
Illinois    General    Assembly   and   the   Governor   with
recommendations for further changes and improvements  to  the
teacher  certification  system  no later than January 1, 1999
and on an annual basis until January 1, 2001.
(Source: P.A.  86-361;  86-734;  86-1028;  86-1471;  86-1488;
87-242.)

    (105 ILCS 5/21-2) (from Ch. 122, par. 21-2)
    Sec. 21-2.  Grades of certificates.
    (a)  Until January 1, 1999, all certificates issued under
this  Article  shall  be  State certificates valid, except as
limited in Section 21-1,  in  every  school  district  coming
under the provisions of this Act and shall be limited in time
and    designated    as   follows:   Provisional   vocational
certificate, temporary  provisional  vocational  certificate,
early  childhood  certificate, elementary school certificate,
special certificate, high school certificate, school  service
personnel     certificate,     administrative    certificate,
provisional certificate,  and  substitute  certificate.   The
requirement  of  student  teaching  under close and competent
supervision for  obtaining  a  teaching  certificate  may  be
waived   by   the  State  Teacher  Certification  Board  upon
presentation to the Board by the teacher  of  evidence  of  5
years  successful  teaching experience on a valid certificate
and  graduation  from  a  recognized  institution  of  higher
learning with a bachelor's degree  with  not  less  than  120
semester  hours  and  a  minimum  of  16  semester  hours  in
professional education.
    (b)  Initial  Teaching Certificate.  Beginning January 1,
1999, persons who (1)  have  completed  an  approved  teacher
preparation  program,  (2)  are  recommended  by  an approved
teacher preparation program, (3) have successfully  completed
the  Initial  Teaching Certification examinations required by
the State Board of Education, and  (4)  have  met  all  other
criteria  established  by  the  State  Board  of Education in
consultation with  the  State  Teacher  Certification  Board,
shall  be  issued an Initial Teaching Certificate valid for 4
years.  Initial Teaching Certificates  shall  be  issued  for
categories   corresponding   to  Early  Childhood  Education,
Elementary Education, and Secondary Education,  with  special
certification  designations  for Special Education, Bilingual
Education, fundamental  learning  areas  (including  Language
Arts, Reading, Mathematics, Science, Social Science, Physical
Development and Health, Fine Arts, and Foreign Language), and
other  areas  designated  by the State Board of Education, in
consultation with the State Teacher Certification Board.
    (c)  Standard Certificate.  Beginning  January  1,  1999,
persons  who  (1)  have completed 4 years of teaching with an
Initial Certificate, have successfully completed the Standard
Teaching Certificate examinations, and  have  met  all  other
criteria  established  by  the  State  Board  of Education in
consultation with the State Teacher Certification  Board,  or
(2)  were  issued  teaching  certificates prior to January 1,
1999 and are renewing those  certificates  after  January  1,
1999,  shall  be  issued  a  Standard Certificate valid for 5
years, which may be renewed thereafter every 5 years  by  the
State   Teacher   Certification   Board  based  on  proof  of
continuing education or  professional  development.  Standard
Certificates  shall be issued for categories corresponding to
Early  Childhood   Education,   Elementary   Education,   and
Secondary  Education, with special certification designations
for  Special  Education,  Bilingual  Education,   fundamental
learning    areas    (including   Language   Arts,   Reading,
Mathematics, Science, Social  Science,  Physical  Development
and Health, Fine Arts, and Foreign Language), and other areas
designated  by  the State Board of Education, in consultation
with the State Teacher Certification Board.
    (d)  Master  Certificate.   Beginning  January  1,  1999,
persons  who  have  successfully  achieved   National   Board
certification  through  the  National  Board for Professional
Teaching Standards shall  be  issued  a  Master  Certificate,
valid  for  7  years  and  renewable thereafter every 7 years
through compliance with requirements set forth by  the  State
Board of Education.
(Source: P.A. 88-92.)

    (105 ILCS 5/21-2.1) (from Ch. 122, par. 21-2.1)
    Sec. 21-2.1.  Early childhood certificate.
    (a)  An  early childhood certificate shall be valid for 4
years for teaching children up to 6 years of  age,  exclusive
of  children enrolled in kindergarten, in facilities approved
by the State Superintendent of Education.  Beginning July  1,
1988,  such  certificate  shall  be  valid  for  4  years for
Teaching children through grade 3 in facilities  approved  by
the  State  Superintendent  of  Education.   Subject  to  the
provisions  of  Section  21-1a, it shall be issued to persons
who have graduated from a recognized  institution  of  higher
learning with a bachelor's degree and with not fewer than 120
semester  hours  including  professional  education  or human
development or, until July 1, 1992, to persons who have early
childhood  education  instruction  and  practical  experience
involving supervised work with children under 6 years of  age
or  with  children  through  grade  3.  Such persons shall be
recommended  for  the  early  childhood  certificate   by   a
recognized   institution  as  having  completed  an  approved
program of preparation which includes the requisite hours and
academic and professional courses  and  practical  experience
approved   by   the  State  Superintendent  of  Education  in
consultation with the State Teacher Certification Board.
    (b)  Beginning January  1,  1999,  Initial  and  Standard
Early  Childhood  Education  Certificates  shall be issued to
persons who meet the criteria established by the State  Board
of Education.
(Source: P.A. 85-1389.)

    (105 ILCS 5/21-2a) (from Ch. 122, par. 21-2a)
    Sec.  21-2a.  Required curriculum for all teachers. After
September 1, 1981 and until January 1, 1999, in  addition  to
all  other  requirements, the successful completion of course
work which includes instruction  on  the  psychology  of  the
exceptional  child,  the  identification  of  the exceptional
child, including, but not limited to  the  learning  disabled
and   methods  of  instruction  for  the  exceptional  child,
including, but not limited to the learning disabled shall  be
a  prerequisite  to  a  person receiving any of the following
certificates:; early childhood, elementary, special and  high
school.
(Source: P.A. 81-1082.)
    (105 ILCS 5/21-3) (from Ch. 122, par. 21-3)
    Sec. 21-3.  Elementary certificate.
    (a)  An  elementary school certificate shall be valid for
4 years for teaching in the kindergarten and lower  9  grades
of  the common schools.  Subject to the provisions of Section
21-1a, it shall be issued to persons who have graduated  from
a recognized institution of higher learning with a bachelor's
degree  and with not fewer than 120 semester hours and with a
minimum of  16  semester  hours  in  professional  education,
including   5   semester  hours  in  student  teaching  under
competent  and  close  supervision.  Such  persons  shall  be
recommended for the elementary certificate  by  a  recognized
institution  as  having  completed  an  approved  program  of
preparation  which  includes intensive preservice training in
the  humanities,  natural  sciences,  mathematics   and   the
academic  and  professional  courses  approved  by  the State
Superintendent of Education in consultation  with  the  State
Teacher Certification Board.
    (b)  Beginning  January  1,  1999,  Initial  and Standard
Elementary Certificates shall be issued to persons  who  meet
all  of  the  criteria  established  by  the  State  Board of
Education for elementary education.
(Source: P.A. 84-126.)

    (105 ILCS 5/21-4) (from Ch. 122, par. 21-4)
    Sec. 21-4.  Special certificate.
    (a)  A special certificate shall be valid for 4 years for
teaching the special subjects named therein in all grades  of
the  common  schools.  Subject  to  the provisions of Section
21-1a, it shall be issued to persons who have graduated  from
a recognized institution of higher learning with a bachelor's
degree and with not fewer than 120 semester hours including a
minimum  of 16 semester hours in professional education, 5 of
which shall be in student teaching under competent and  close
supervision. When the holder of such certificate has earned a
master's  degree,  including eight semester hours of graduate
professional  education  from  a  recognized  institution  of
higher learning and with two years' teaching  experience,  it
may be endorsed for supervision.
    Such   persons  shall  be  recommended  for  the  special
certificate by a recognized institution as  having  completed
an  approved  program  of preparation which includes academic
and professional courses approved by the State Superintendent
of  Education  in  consultation  with   the   State   Teacher
Certification Board.
    (b)  Beginning  January  1,  1999,  special certification
designations shall be issued for Special Education, Bilingual
Education,  fundamental  learning   areas   (Language   Arts,
Reading,   Mathematics,  Science,  Social  Science,  Physical
Development and Health, Fine Arts, and Foreign Language), and
other areas designated by the State Board  of  Education,  to
persons who meet all of the criteria established by the State
Board  of  Education,  in consultation with the State Teacher
Certification Board.
(Source: P.A. 84-126.)

    (105 ILCS 5/21-5) (from Ch. 122, par. 21-5)
    Sec. 21-5.  High school certificate.
    (a)  A high school certificate shall be valid for 4 years
for teaching in grades  6  to  12  inclusive  of  the  common
schools. Subject to the provisions of Section 21-1a, it shall
be  issued  to  persons  who have graduated from a recognized
institution of higher learning with a bachelor's  degree  and
with  not fewer than 120 semester hours including 16 semester
hours in professional education,  5  of  which  shall  be  in
student  teaching  under  competent and close supervision and
with one or more  teaching  fields.  Such  persons  shall  be
recommended  for  the high school certificate by a recognized
institution  as  having  completed  an  approved  program  of
preparation which  includes  the  academic  and  professional
courses  approved by the State Superintendent of Education in
consultation with the State Teacher Certification Board.
    (b)  Beginning January  1,  1999,  Initial  and  Standard
Secondary  Certificates  shall  be issued to persons who meet
all of  the  criteria  established  by  the  State  Board  of
Education for secondary education.
(Source: P.A. 84-126.)

    (105 ILCS 5/21-5a) (from Ch. 122, par. 21-5a)
    Sec. 21-5a.  Alternative math-science certification.  The
State  Board  of  Education,  in  consultation with the State
Teacher Certification Board, shall establish and implement an
alternative certification program  under  which  persons  who
qualify  for  admission to, and who successfully complete the
program and meet the additional requirements  established  by
this  Section shall be issued an initial alternative teaching
certificate for teaching mathematics, science or  mathematics
and science in grades 9 through 12 of the common schools.  In
establishing  an alternative certification program under this
Section, the State Board  of  Education  shall  designate  an
appropriate  area within the State where the program shall be
offered and made available to persons qualified for admission
to the program.  In addition, the State Board  of  Education,
in  cooperation  with  one or more recognized institutions of
higher learning, shall  develop  a  comprehensive  course  of
study  that persons admitted to the program must successfully
complete in order to satisfy one criterion for issuance of an
initial  alternative  certificate  under  this  Section.  The
comprehensive course of study so developed shall include  one
semester of practice teaching.
    An  initial alternative teaching certificate, valid for 4
years for teaching mathematics, science  or  mathematics  and
science  in  grades  9  through  12 of the common schools and
renewable as provided in Section 21-14, shall be issued under
this Section 21-5a to persons who qualify  for  admission  to
the  alternative certification program and who at the time of
applying for  an  initial  alternative  teaching  certificate
under this Section:
         (1)  have   graduated  with  a  master's  degree  in
    mathematics or any science discipline from an institution
    of  higher  learning  whose  scholarship  standards   are
    approved  by the State Board of Education for purposes of
    the alternative certification program;
         (2)  have been employed for at least 10 years in  an
    area  requiring  knowledge  and  practical application of
    their academic background in  mathematics  or  a  science
    discipline;
         (3)  have  successfully  completed  the  alternative
    certification  program  and  the  course of comprehensive
    study,  including  one  semester  of  practice  teaching,
    developed as part of the  program  as  provided  in  this
    Section and approved by the State Board of Education; and
         (4)  have  passed  the examinations required by test
    of basic skills and subject matter knowledge required  by
    Section 21-1a.
    The    alternative   certification   program   shall   be
implemented at the commencement  of  the  1992-1993  academic
year.
    The State Board of Education shall establish criteria for
admission  to the alternative certification program and shall
adopt rules and regulations that  are  consistent  with  this
Section and that the State Board of Education deems necessary
to establish and implement the program.
(Source: P.A. 87-446.)

    (105 ILCS 5/21-5c new)
    Sec.  21-5c.  Alternative route to teacher certification.
The State Board of Education, in consultation with the  State
Teacher Certification Board, shall establish and implement an
alternative  route  to  teacher  certification  program under
which persons who meet the requirements of  and  successfully
complete  the  program  established  by this Section shall be
issued  an  initial  teaching  certificate  for  teaching  in
schools in this State. The State  Board  of  Education  shall
approve  a  course  of study that persons in the program must
successfully complete in order to satisfy one  criterion  for
issuance   of   a   certificate   under  this  Section.   The
Alternative Route to Teacher Certification program course  of
study  must  include the current content and skills contained
in a university's current  courses  for  State  certification
which  have been approved by the State Board of Education, in
consultation with the State Teacher Certification  Board,  as
the requirement for State teacher certification.
    The program established under this Section shall be known
as  the  Alternative  Route to Teacher Certification program.
The program may be offered in conjunction with  one  or  more
not-for-profit organizations in the State.  The program shall
be comprised of the following 3 phases: (a) a course of study
offered   on   an   intensive   basis  in  education  theory,
instructional  methods,  and  practice  teaching;   (b)   the
person's  assignment to a full-time teaching position for one
school year, including the designation of a mentor teacher to
advise and assist the person with that  teaching  assignment;
and  (c)  a comprehensive assessment of the person's teaching
performance by school officials and program participants  and
a  recommendation  by  the institution of higher education to
the State Board of Education that the  person  be  issued  an
initial  teaching  certificate.  Successful completion of the
Alternative Route to Teacher Certification program  shall  be
deemed  to satisfy any other practice or student teaching and
subject matter requirements established by law.
    A provisional alternative teaching certificate, valid for
one year of teaching in the common schools and not renewable,
shall be issued under this Section 21-5c to  persons  who  at
the time of applying for the provisional alternative teaching
certificate under this Section:
         (1)  have  graduated  from  an accredited college or
    university with a bachelor's degree;
         (2)  have been employed for a period of at  least  5
    years   in   an   area   requiring   application  of  the
    individual's education;
         (3)  have successfully completed the first phase  of
    the Alternative Teacher Certification program as provided
    in this Section; and
         (4)  have  passed  the  tests  of  basic  skills and
    subject matter knowledge required by Section 21-1a.
    An initial teaching certificate, valid  for  teaching  in
the  common  schools,  shall  be issued under Section 21-3 or
21-5 to persons who first complete the requirements  for  the
provisional  alternative  teaching certificate and who at the
time of applying for an  initial  teaching  certificate  have
successfully  completed  the  second  and third phases of the
Alternative  Route  to  Teacher  Certification   program   as
provided in this Section.
    A person possessing a provisional alternative certificate
or  an initial teaching certificate earned under this Section
shall  be  treated  as  a  regularly  certified  teacher  for
purposes of  compensation,  benefits,  and  other  terms  and
conditions  of employment afforded teachers in the school who
are members of a bargaining unit represented by an  exclusive
bargaining representative, if any.
    The   State  Board  of  Education  may  adopt  rules  and
regulations that are consistent with this  Section  and  that
the  State  Board  deems necessary to establish and implement
the program.

    (105 ILCS 5/21-5d new)
    Sec.  21-5d.    Alternative   route   to   administrative
certification.  The State Board of Education, in consultation
with  the  State  Teacher Certification Board and an advisory
panel consisting of no less than 7  administrators  appointed
by the State Superintendent of Education, shall establish and
implement    an    alternative    route   to   administrative
certification  program  under  which  persons  who  meet  the
requirements  of  and  successfully  complete   the   program
established  by  this  Section  shall  be  issued  a standard
administrative certificate for serving as an administrator in
schools in this State.  For  the  purposes  of  this  Section
only,    "administrator"   means   a   person   holding   any
administrative position for which a  standard  administrative
certificate  with a general administrative endorsement, chief
school  business  official  endorsement,  or   superintendent
endorsement  is  required, except a principal or an assistant
principal.  The State Board  of  Education  shall  approve  a
course of study that persons in the program must successfully
complete  in order to satisfy one criterion for issuance of a
certificate under this Section.   The  Alternative  Route  to
Administrative  Certification  program  course  of study must
include  the  current  content  and  skills  contained  in  a
university's current courses for  State  certification  which
have  been  approved  by  the  State  Board  of Education, in
consultation with the State Teacher Certification  Board,  as
the requirement for administrative certification.
    The program established under this Section shall be known
as  the  Alternative  Route  to  Administrative Certification
program.  The program shall be comprised of the  following  3
phases:  (a)  a course of study offered on an intensive basis
in  education  management,  governance,   organization,   and
planning; (b) the person's assignment to a full-time position
for   one   school  year  as  an  administrator;  and  (c)  a
comprehensive  assessment  of  the  person's  performance  by
school officials and a recommendation to the State  Board  of
Education that the person be issued a standard administrative
certificate.   Successful completion of the Alternative Route
to Administrative Certification program shall  be  deemed  to
satisfy  any other supervisory, administrative, or management
experience requirements established by law.
    A  provisional  alternative  administrative  certificate,
valid for one year of serving  as  an  administrator  in  the
common  schools and not renewable, shall be issued under this
Section 21-5d to persons who at the time of applying for  the
provisional alternative administrative certificate under this
Section:
         (1)  have  graduated  from  an accredited college or
    university with a master's degree in a  management  field
    or  with  a  bachelor's  degree  and  the life experience
    equivalent of a master's degree in a management field  as
    determined by the State Board of Education;
         (2)  have  been  employed for a period of at least 5
    years in a management level position;
         (3)  have successfully completed the first phase  of
    the  Alternative  Route  to  Administrative Certification
    program as provided in this Section; and
         (4)  have passed any  examination  required  by  the
    State Board of Education.
    A  standard  administrative  certificate  with  a general
administrative endorsement, chief  school  business  official
endorsement,  or  superintendent  endorsement,  renewable  as
provided  in  Section  21-14,  shall  be issued under Section
21-7.1 to persons who first complete the requirements for the
provisional alternative administrative certificate and who at
the  time  of  applying   for   a   standard   administrative
certificate  have successfully completed the second and third
phases   of   the   Alternative   Route   to   Administrative
Certification program as provided in this Section.
    The  State  Board  of  Education  may  adopt  rules   and
regulations  that  are  consistent with this Section and that
the State Board deems necessary to  establish  and  implement
the program.

    (105 ILCS 5/21-10) (from Ch. 122, par. 21-10)
    Sec. 21-10. Provisional certificate.
    (A)  Until  July 1, 1972, the State Teacher Certification
Board may issue a provisional certificate valid for  teaching
in  elementary, high school or special subject fields subject
to the following conditions:
    A provisional certificate may be issued to a  person  who
presents  certified  evidence  of  having earned a bachelor's
degree from a recognized institution of higher learning.  The
academic and professional courses offered as a basis  of  the
provisional  certificate  shall  be  courses  approved by the
State Board of  Education  in  consultation  with  the  State
Teacher Certification Board.
    A  certificate  earned  under this plan may be renewed at
the end of each two-year period upon evidence filed with  the
State  Teacher Certification Board that the holder has earned
8 semester hours of credit within the  period;  provided  the
requirements  for the certificate of the same type issued for
the teaching position for which the teacher is employed shall
be met by the end of the second  renewal  period.   A  second
provisional  certificate shall not be issued.  The credits so
earned must be approved by the State Board  of  Education  in
consultation  with  the State Teacher Certification Board and
must  meet  the  general  pattern  for  a  similar  type   of
certificate  issued  on  the basis of credit.  No more than 4
semester hours shall be chosen from elective subjects.
    (B)  After July 1, 1972, the State Teacher  Certification
Board  may issue a provisional certificate valid for teaching
in  early  childhood,  elementary,  high  school  or  special
subject fields, or for providing service  as  school  service
personnel   or  for  administering  schools  subject  to  the
following conditions: A provisional certificate may be issued
to  a  person  who  meets  the  requirements  for  a  regular
teaching,  school   service   personnel   or   administrative
certificate  in  another  State  and  who  presents certified
evidence  of  having  earned  a  bachelor's  degree  from   a
recognized  institution of higher learning.  The academic and
professional courses offered as a basis  of  the  provisional
certificate  shall  be courses approved by the State Board of
Education   in   consultation   with   the   State    Teacher
Certification Board.  A certificate earned under this plan is
valid  for  a  period  of  2  years and shall not be renewed;
however, the individual to whom this  certificate  is  issued
shall have passed or shall pass the examinations set forth by
the  State  Board  of Education basic skills test and subject
matter knowledge test or tests within 9 months of the date of
issuance of the provisional certificate. Failure to pass  the
tests,  required  in  Section  21-1a,  shall  result  in  the
cancellation of the provisional certificate.
    (C)  The State Teacher Certification Board may also issue
a   provisional   vocational   certificate  and  a  temporary
provisional vocational certificate.
         (1)  The requirements for a  provisional  vocational
    certificate  shall  be  determined  by the State Board of
    Education in consultation with the State  Teacher  Board;
    provided, the following minimum requirements are met: (a)
    after  July 1, 1972, at least 30 semester hours of credit
    from a recognized institution of higher learning; and (b)
    after July 1, 1974, at least 60 semester hours of  credit
    from a recognized institution of higher learning.
         (2)  The  requirements  for  a temporary provisional
    vocational certificate shall be determined by  the  State
    Board of Education in consultation with the State Teacher
    Certification  Board;  provided,  the  following  minimum
    requirements  are  met:  (a) after July 1, 1973, at least
    4,000 hours  of  work  experience  in  the  skill  to  be
    certified  for  teaching;  and (b) after July 1, 1975, at
    least 8,000 hours of work experience in the skill  to  be
    certified for teaching.  Any certificate issued under the
    provisions  of  this  paragraph  shall  expire on June 30
    following the date of issue.  Renewals may be granted  on
    a  yearly  basis,  but shall not be granted to any person
    who does not file with the  State  Teacher  Certification
    Board  a  transcript showing at least 3 semester hours of
    credit earned during the previous year  in  a  recognized
    institution  of  learning.   No such certificate shall be
    issued except upon certification by the employing  board,
    subject to the approval of the regional superintendent of
    schools,  that  no  qualified  teacher  holding a regular
    certificate or a provisional  vocational  certificate  is
    available  and that actual circumstances and need require
    such issuance.
    The courses or work experience offered as a basis for the
issuance of the provisional  vocational  certificate  or  the
temporary   provisional   vocational   certificate  shall  be
approved by the State Board of Education in consultation with
the State Teacher Certification Board.
    (D)  Until July 1, 1972, the State Teacher  Certification
Board   may   also   issue  a  provisional  foreign  language
certificate valid  for  4  years  for  teaching  the  foreign
language  named  therein  in all grades of the common schools
and shall be issued to persons  who  have  graduated  from  a
recognized institution of higher learning with not fewer than
120   semester  hours  of  credit  and  who  have  met  other
requirements as determined by the State Board of Education in
consultation with the State Teacher Certification Board.   If
the  holder  of a provisional foreign language certificate is
not a citizen of the United States within 6 years of the date
of issuance of the  original  certificate,  such  certificate
shall  be suspended by the regional superintendent of schools
of the region in which the holder is  engaged  to  teach  and
shall  not be reinstated until the holder is a citizen of the
United States.
    (E)  Notwithstanding  anything  in  this   Act   to   the
contrary,  the  State Teacher Certification Board shall issue
part-time provisional certificates  to  eligible  individuals
who are professionals and craftsmen.
    The  requirements  for  a  part-time provisional teachers
certificate  shall  be  determined  by  the  State  Board  of
Education   in   consultation   with   the   State    Teacher
Certification   Board,   provided   the   following   minimum
requirements  are  met:   60  semester hours of credit from a
recognized institution of higher learning or  4000  hours  of
work experience in the skill to be certified for teaching.
    A  part-time  provisional  certificate  may be issued for
teaching no more than 2 courses of study for grades 6 through
12.
    A part-time provisional  teachers  certificate  shall  be
valid  for  2  years  and may be renewed at the end of each 2
year period.
(Source: P.A. 88-204.)

    (105 ILCS 5/21-11.1) (from Ch. 122, par. 21-11.1)
    Sec.    21-11.1.      Certificates     for     equivalent
qualifications. An applicant who holds or is eligible to hold
a  teacher's certificate or license under the laws of another
state or territory of the United  States  may  be  granted  a
corresponding   teacher's  certificate  in  Illinois  on  the
written authorization of the State Board of Education and the
State  Teacher  Certification  Board   upon   the   following
conditions:
         (1)  That the applicant is at least 19 years of age,
    is  of  good  character, good health and a citizen of the
    United States; and
         (2)  That the requirements for a  similar  teacher's
    certificate in the particular state or territory were, at
    the  date  of  issuance of the certificate, substantially
    equal to the  requirements  in  force  at  the  time  the
    application is made for the certificate in this State.
    After  January  1,  1988,  in  addition to satisfying the
foregoing conditions and requirements,  an  applicant  for  a
corresponding  teaching certificate in Illinois also shall be
required to pass the examinations test of  basic  skills  and
subject  matter  knowledge  required  under the provisions of
Section 21-1a as directed by the State Board of Education.
    In determining good character  under  this  Section,  any
felony   conviction  of  the  applicant  may  be  taken  into
consideration, but the conviction shall not operate as a  bar
to registration.
    The  State  Board  of  Education in consultation with the
State Teacher Certification Board shall prescribe  rules  and
regulations  establishing  the  similarity of certificates in
other  states  and  the   standards   for   determining   the
equivalence of requirements.
(Source: P.A. 87-242.)

    (105 ILCS 5/21-11.3) (from Ch. 122, par. 21-11.3)
    Sec.  21-11.3.  Resident teacher certificate.  A resident
teacher certificate shall be valid for 2 years for employment
as a resident teacher in a public school.  It shall be issued
only  to  persons  who  have  graduated  from  a   recognized
institution of higher education with a bachelor's degree, who
are  enrolled  in  a  program  of preparation approved by the
State Superintendent of Education in  consultation  with  the
State  Teacher  Certification  Board, and who have passed the
appropriate  tests  as  required  in  test  of  basic  skills
required by Section 21-1a and  as  determined  by  the  State
Board  of  Education.   A resident teacher certificate may be
issued for teaching children through grade 3  or  for  grades
K-9,  6-12,  or K-12 in a special subject area and may not be
renewed. A resident teacher may  teach  only  in  conjunction
with and under the direction of a certified teacher and shall
not teach in place of a certified teacher.
(Source: P.A. 87-222.)

    (105 ILCS 5/21-11.4)
    Sec. 21-11.4.  Illinois Teacher Corps.
    (a)  The  General  Assembly finds and determines that (i)
it  is  important  to  encourage  the  entry   of   qualified
professionals  into  elementary  and  secondary teaching as a
second career; and (ii) there are a number of individuals who
have bachelors' degrees, experience in the work force, and an
interest in serving youth that creates a special talent  pool
with  great  potential  for  enriching  the lives of Illinois
children as teachers.  To provide this talent pool  with  the
opportunity  to serve children as teachers, school districts,
colleges, and universities are encouraged,  as  part  of  the
public  policy  of  this  State,  to enter into collaborative
programs  to  educate  and   induct   these   non-traditional
candidates  into  the teaching profession.  To facilitate the
certification  of  such  candidates,  the  State   Board   of
Education,   in   consultation   with   the   State   Teacher
Certification  Board,  shall  assist  institutions  of higher
education and school districts with the implementation of the
Illinois Teacher Corps.
    (b)  Individuals who wish to become  candidates  for  the
Illinois  Teacher  Corps program must earn a resident teacher
certificate as defined in Section 21-11.3, including:
         (1)  graduation from  a  recognized  institution  of
    higher  education with a bachelor's degree and at least a
    3.00 out of a 4.00 grade point average;
         (2)  a minimum of 5 years of professional experience
    in the area the candidate wishes to teach;
         (3)  passing the examinations required by the  State
    Board  of  Education  test  of  basic  skills and subject
    matter required by Section 21-1a;
         (4)  enrollment in a  Masters  of  Education  Degree
    program approved by the State Superintendent of Education
    in  consultation  with  the  State  Teacher Certification
    Board; and
         (5)  completion of a 6 week summer intensive teacher
    preparation course which is the first  component  of  the
    Masters Degree program.
    (c)  School  districts may hire an Illinois Teacher Corps
candidate  after  the  candidate  has  received  his  or  her
resident teacher certificate.  The school  district  has  the
responsibility  of  ensuring  that the candidates receive the
supports  necessary  to  become  qualified,   competent   and
productive  teachers.   To  be eligible to participate in the
Illinois Teacher Corps program, school districts must provide
a minimum of the following supports to the candidates:
         (1)  a salary and  benefits  package  as  negotiated
    through the teacher contracts;
         (2)  a  mentor  certified  teacher  who will provide
    guidance to  one  or  more  candidates  under  a  program
    developed  collaboratively  by  the  school  district and
    university;
         (3)  at least  quarterly  evaluations  performed  of
    each  candidate  jointly  by  the  mentor teacher and the
    principal of the school or the principal's designee; and
         (4)  a written and signed document from  the  school
    district  outlining  the  support the district intends to
    provide to the candidates,  for  approval  by  the  State
    Teacher Certification Board.
    (d)  Illinois institutions of higher education shall work
collaboratively  with  school districts and the State Teacher
Certification Board to academically  prepare  the  candidates
for  the teaching profession.  To be eligible to participate,
the  College  or  School  of  Education  of  a  participating
Illinois institution  of  higher  education  must  develop  a
curriculum  that  provides, upon completion, a Masters Degree
in Education for the candidates.  The Masters Degree  program
must:
         (1)  receive   approval   from   the  State  Teacher
    Certification Board; and
         (2)  take no longer than 3 summers  and  2  academic
    years  to  complete,  and  balance  the  needs  and  time
    constraints of the candidates.
    (e)  Upon  successful  completion  of  the Masters Degree
program,  the  candidate    receives  an   Initial   Teaching
Certificate becomes a fully certified teacher in the State of
Illinois  and all other general education academic coursework
deficiencies are waived.
    (f)  If an individual wishes to become a candidate in the
Illinois Teacher Corps program, but does not possess 5  years
of  professional  experience,  the individual may qualify for
the  program  by  participating  in  a  one  year  internship
teacher preparation program with a school district.  The  one
year  internship  shall  be  developed collaboratively by the
school  district  and  the  Illinois  institution  of  higher
education,  and  shall  be  approved  by  the  State  Teacher
Certification Board.
    (g)  The State Board of Education is authorized to  award
grants  to  school  districts that seek to prepare candidates
for the teaching profession who have bachelors'  degrees  and
professional work experience in subjects relevant to teaching
fields,  but who do not have formal preparation for teaching.
Grants may be made to school districts for up to  $3,000  per
candidate  when  the  school  district, in cooperation with a
public  or  private  university  and  the  school  district's
teacher  bargaining  unit,  develop  a  program  designed  to
prepare teachers  pursuant  to  the  Illinois  Teacher  Corps
program under this Section.
(Source: P.A. 88-204.)

    (105 ILCS 5/21-14) (from Ch. 122, par. 21-14)
    Sec. 21-14. Registration and renewal of certificates.)
    (a)  A  limited  four-year  certificate  or a certificate
issued  after  July  1,  1955,  shall  be  renewable  at  its
expiration  or  within  60  days  thereafter  by  the  county
superintendent of schools having supervision and control over
the school where  the  teacher  is  teaching  upon  certified
evidence  of meeting the requirements for renewal as required
by this Act and prescribed by the State Board of Education in
consultation with the State Teacher Certification Board.   An
elementary  supervisory  certificate  shall not be renewed at
the  end  of  the  first  four-year  period  covered  by  the
certificate unless the holder  thereof  has  filed  certified
evidence  with  the State Teacher Certification Board that he
has a master's degree or that he has earned 8 semester  hours
of  credit  in  the  field  of educational administration and
supervision in a recognized institution of  higher  learning.
The  holder shall continue to earn 8 semester hours of credit
each four-year period until such time  as  he  has  earned  a
master's degree.
    All  certificates  not  renewed  or  registered as herein
provided shall lapse after a  period  of  4  years  from  the
expiration   of   the   last   year  of  registration.   Such
certificates may be reinstated for a  one  year  period  upon
payment   of   all   accumulated   registration  fees.   Such
reinstated certificates shall only be renewed: (1) by earning
5 semester hours of credit in  a  recognized  institution  of
higher  learning in the field of professional education or in
courses related to the holder's contractual teaching  duties;
or  (2)  by  presenting  evidence  of holding a valid regular
certificate of some  other  type.   Any  certificate  may  be
voluntarily   surrendered   by  the  certificate  holder.   A
voluntarily surrendered certificate shall  be  treated  as  a
revoked certificate.
    (b)  When   those  teaching  certificates  issued  before
January 1, 1999 are renewed for the first time after  January
1,  1999,  all  such teaching certificates shall be exchanged
for Standard Teaching Certificates as provided in  subsection
(c)  of  Section  21-2.   All  Initial  and Standard Teaching
Certificates,  including  those   issued   to   persons   who
previously  held  teaching certificates issued before January
1, 1999, shall be renewable under the conditions set forth in
this subsection (b).
    Initial Teaching Certificates are valid for 4  years  and
are   nonrenewable.     Standard  Teaching  Certificates  are
renewable every 5 years as  provided  in  subsection  (c)  of
Section 21-2.
(Source: P.A. 86-400.)

    (105 ILCS 5/24-11) (from Ch. 122, par. 24-11)
    Sec.  24-11.   Boards  of  Education  -  Boards of School
Inspectors - Contractual continued service.  As used in  this
and the succeeding Sections of this Article:,
    "Teacher"  means  any  or  all  school district employees
regularly required to be certified under laws relating to the
certification of teachers.,
    "Board" means board of directors, board of education,  or
board of school inspectors, as the case may be., and
    "School term" means that portion of the school year, July
1 to the following June 30, when school is in actual session.
    This  Section  and  Sections  24-12 through 24-16 of this
Article apply only  to  school  districts  having  less  than
500,000 inhabitants.
    Any  teacher  who  has been employed in any district as a
full-time teacher for a probationary period of 2  consecutive
school  terms  shall enter upon contractual continued service
unless given written notice of dismissal stating the specific
reason therefor, by certified mail, return receipt  requested
by  the employing board at least 45 60 days before the end of
such period; except that for a teacher who is first  employed
by  a school district on or after January 1, 1998 and who has
not  before  that  date  already  entered  upon   contractual
continued  service  in that district, the probationary period
shall be 4 consecutive school terms before the teacher  shall
enter upon contractual continued service.  For the purpose of
determining   contractual   continued   service,   the  first
probationary year shall be any full-time  employment  from  a
date  before  November  1 through the end of the school year.
If, however, a  teacher  has  not  had  one  school  term  of
full-time  teaching  experience  before the beginning of such
probationary period, the employing board may  at  its  option
extend  such  probationary  period  for one additional school
term by giving the teacher written notice by certified  mail,
return  receipt  requested at least 60 days before the end of
the second school term of the period of 2 consecutive  school
terms  referred to above.  Such notice must state the reasons
for the one year extension and must  outline  the  corrective
actions  which  the  teacher  should  take  to satisfactorily
complete probation.
    Any full-time teacher who  is  not  completing  the  last
first  year  of  the  probationary  period  described  in the
preceding paragraph, or any teacher employed on  a  full-time
basis  not  later  than  January  1 of the school term, shall
receive written notice from the employing board at  least  45
60  days  before the end of any school term whether or not he
will be re-employed for the following  school  term.  If  the
board fails to give such notice, the employee shall be deemed
reemployed,  and not later than the close of the then current
school term the board shall issue a regular contract  to  the
employee  as though the board had reemployed him in the usual
manner.
    Contractual continued service shall  continue  in  effect
the  terms  and  provisions  of the contract with the teacher
during the last  school  term  of  the  probationary  period,
subject  to  this  Act  and  the  lawful  regulations  of the
employing board. This Section and succeeding Sections do  not
modify any existing power of the board except with respect to
the procedure of the discharge of a teacher and reductions in
salary as hereinafter provided. Contractual continued service
status  shall not restrict the power of the board to transfer
a teacher to a position which the  teacher  is  qualified  to
fill   or  to  make  such  salary  adjustments  as  it  deems
desirable, but unless reductions in  salary  are  uniform  or
based  upon some reasonable classification, any teacher whose
salary is reduced shall be entitled to a notice and a hearing
as hereinafter provided in the case of certain dismissals  or
removals.
    The  employment  of any teacher in a program of a special
education joint agreement established under Section  3-15.14,
10-22.31  or  10-22.31a  shall  be  under this and succeeding
Sections of this Article.   For  purposes  of  attaining  and
maintaining   contractual  continued  service  and  computing
length of continuing service as referred to in  this  Section
and  Section 24-12, employment in a special educational joint
program shall  be  deemed  a  continuation  of  all  previous
certificated  employment  of  such  teacher  for  such  joint
agreement  whether  the employer of the teacher was the joint
agreement,  the  regional  superintendent,  or  one  of   the
participating districts in the joint agreement.
    Any  teacher  employed  after July 1, 1987 as a full-time
teacher in a program of a special education joint  agreement,
whether  the  program is operated by the joint agreement or a
member district on behalf  of  the  joint  agreement,  for  a
probationary period of two consecutive years shall enter upon
contractual   continued   service  in  all  of  the  programs
conducted by  such  joint  agreement  which  the  teacher  is
legally  qualified  to hold; except that for a teacher who is
first employed on or after January 1, 1998 in a program of  a
special education joint agreement and who has not before that
date  already  entered  upon contractual continued service in
all of the programs conducted by the joint agreement that the
teacher is legally qualified to hold, the probationary period
shall be 4 consecutive years before the teacher  enters  upon
contractual  continued  service in all of those programs.  In
the event of  a  reduction  in  the  number  of  programs  or
positions  in the joint agreement, the teacher on contractual
continued service shall be eligible  for  employment  in  the
joint  agreement  programs  for  which the teacher is legally
qualified in order of greater length of continuing service in
the  joint  agreement  unless  an   alternative   method   of
determining  the  sequence  of  dismissal is established in a
collective  bargaining  agreement.   In  the  event  of   the
dissolution  of a joint agreement, the teacher on contractual
continued service who is legally qualified shall be  assigned
to  any  comparable  position  in a member district currently
held by a  teacher  who  has  not  entered  upon  contractual
continued  service  or held by a teacher who has entered upon
contractual  continued  service  with   shorter   length   of
contractual continued service.
    The  governing  board  of  the  joint  agreement,  or the
administrative district, if so authorized by the articles  of
agreement  of  the  joint agreement, rather than the board of
education of a school district, may carry out employment  and
termination  actions  including dismissals under this Section
and Section 24-12.
    For purposes of this  and  succeeding  Sections  of  this
Article,  a  program of a special educational joint agreement
shall be defined as instructional, consultative, supervisory,
administrative, diagnostic, and related  services  which  are
managed  by  the special educational joint agreement designed
to service two or more districts which  are  members  of  the
joint agreement.
    Each  joint  agreement  shall  be  required  to  post  by
February 1, a list of all its employees in order of length of
continuing   service   in  the  joint  agreement,  unless  an
alternative method of determining a sequence of dismissal  is
established in an applicable collective bargaining agreement.
    The  employment  of  any  teacher  in a special education
program authorized by Section 14-1.01 through 14-14.01, or  a
joint   educational   program   established   under   Section
10-22.31a, shall be under this and the succeeding Sections of
this   Article,   and  such  employment  shall  be  deemed  a
continuation of the previous employment of  such  teacher  in
any   of  the  participating  districts,  regardless  of  the
participation of other districts in the program. Any  teacher
employed  as  a  full-time  teacher  in  a  special education
program prior to September 23, 1987 in which 2 or more school
districts  participate  for  a  probationary  period   of   2
consecutive  years  shall  enter  upon  contractual continued
service in each of the participating  districts,  subject  to
this  and the succeeding Sections of this Article, and in the
event of the termination of the program shall be eligible for
any vacant position in any of such districts for  which  such
teacher is qualified.
(Source: P.A. 85-1163; 85-1209; 85-1440.)

    (105 ILCS 5/24A-5) (from Ch. 122, par. 24A-5)
    Sec.  24A-5.   Content  of evaluation plans.  Each school
district to which this  Article  applies  shall  establish  a
teacher  evaluation  plan  which ensures that each teacher in
contractual continued service is evaluated at least  once  in
the  course  of  every  2  school  years,  beginning with the
1986-87 school year.
    The evaluation plan shall comply with the requirements of
this Section and of any rules adopted by the State  Board  of
Education pursuant to this Section.
    The  plan  shall  include a description of each teacher's
duties and responsibilities and of  the  standards  to  which
that teacher is expected to conform.
    The  plan  may  provide for evaluation of personnel whose
positions require administrative certification by independent
evaluators not employed by  or  affiliated  with  the  school
district.  The results of the school district administrators'
evaluations  shall be reported to the employing school board,
together with such recommendations  for  remediation  as  the
evaluator or evaluators may deem appropriate.
    Evaluation  of  teachers  whose  positions do not require
administrative  certification  shall  be  conducted   by   an
administrator  qualified under Section 24A-3, or -- in school
districts having a population exceeding 500,000 -- by  either
an   administrator   qualified  under  Section  24A-3  or  an
assistant principal under the supervision of an administrator
qualified under Section 24A-3, and shall include at least the
following components:
         (a)  personal observation  of  the  teacher  in  the
    classroom  (on at least 2 different school days in school
    districts having a population  exceeding  500,000)  by  a
    district  administrator qualified under Section 24A-3, or
    -- in school  districts  having  a  population  exceeding
    500,000  --  by  either  an administrator qualified under
    Section  24A-3  or  an  assistant  principal  under   the
    supervision  of  an administrator qualified under Section
    24A-3, unless the teacher has no classroom duties.
         (b)  consideration  of  the  teacher's   attendance,
    planning,    and    instructional    methods,   classroom
    management, where relevant, and competency in the subject
    matter taught, where relevant.
         (c)  rating  of   the   teacher's   performance   as
    "excellent", "satisfactory" or "unsatisfactory".
         (d)  specification as to the teacher's strengths and
    weaknesses,  with  supporting  reasons  for  the comments
    made.
         (e)  inclusion of a copy of the  evaluation  in  the
    teacher's  personnel  file and provision of a copy to the
    teacher.
         (f)  within  30  days   after   completion   of   an
    evaluation   rating   a   teacher   as  "unsatisfactory",
    development and commencement by the district,  or  by  an
    administrator   qualified   under  Section  24A-3  or  an
    assistant  principal  under   the   supervision   of   an
    administrator  qualified  under  Section  24A-3 in school
    districts having a population  exceeding  500,000,  of  a
    remediation  plan designed to correct deficiencies cited,
    provided the deficiencies are deemed remediable.  In  all
    school  districts  having  a population exceeding 500,000
    the remediation plan for unsatisfactory, tenured teachers
    shall provide for 90 school 45 days of school remediation
    within the classroom.  Additional remediation,  up  to  6
    months  (inclusive  of the 45 days), may be provided only
    in those cases where at the termination  of  the  45  day
    in-class   remediation,   the  principal  and  consulting
    teacher provided  for  herein  determine  (based  on  the
    teacher's  progress)  that the teacher may be remediable,
    but  such  additional   remediation   shall   create   no
    presumption of remediability and may be terminated at any
    time after 45 or 90 days by the principal.  The principal
    and  consulting teacher shall determine if the additional
    remediation time shall be conducted within or outside  of
    the   assigned   classroom.    In  all  school  districts
    evaluations issued pursuant to  this  Section  in  school
    districts  having a population exceeding 500,000 shall be
    issued  within  10  days  after  the  conclusion  of  the
    respective remediation plan.  However, the  school  board
    or  other  governing  authority of the district shall not
    lose jurisdiction to discharge a teacher in the event the
    evaluation  is  not  issued  within  10  days  after  the
    conclusion of the respective remediation plan.
         (g)  participation in the remediation  plan  by  the
    teacher  rated "unsatisfactory", a district administrator
    qualified under Section 24A-3 (or -- in a school district
    having a population exceeding 500,000 -- an administrator
    qualified under Section 24A-3 or an  assistant  principal
    under the supervision of an administrator qualified under
    Section 24A-3), and a consulting teacher, selected by the
    participating administrator or by the principal, or -- in
    school districts having a population exceeding 500,000 --
    by  an  administrator qualified under Section 24A-3 or by
    an  assistant  principal  under  the  supervision  of  an
    administrator  qualified  under  Section  24A-3,  of  the
    teacher who was rated "unsatisfactory", which  consulting
    teacher  is  an  educational  employee  as defined in the
    Educational Labor Relations Act, has at  least  5  years'
    teaching experience and a reasonable familiarity with the
    assignment  of  the  teacher  being  evaluated,  and  who
    received  an "excellent" rating on his or her most recent
    evaluation.  Where no teachers who  meet  these  criteria
    are  available  within  the  district, the district shall
    request and the State Board of Education shall supply, to
    participate in the remediation process, an individual who
    meets these criteria.
         In a district  having  a  population  of  less  than
    500,000   with   an   exclusive   bargaining  agent,  the
    bargaining agent may, if it so chooses, supply  a  roster
    of qualified teachers from whom the consulting teacher is
    to  be selected.  That roster shall, however, contain the
    names of at least 5 teachers,  each  of  whom  meets  the
    criteria  for  consulting  teacher  with  regard  to  the
    teacher  being evaluated, or the names of all teachers so
    qualified if that number is less than 5.  In the event of
    a dispute as to  qualification,  the  State  Board  shall
    determine qualification.
         (h)  quarterly  evaluations and ratings for one year
    immediately  following  receipt  of  an  "unsatisfactory"
    rating of a teacher for whom a remediation plan has  been
    developed;  provided  that  in  school districts having a
    population  exceeding  500,000  there  shall  be  monthly
    evaluations and  ratings  for  the  first  6  months  and
    quarterly  evaluations  and ratings for the next 6 months
    immediately  following  completion  of  the   remediation
    program of a teacher for whom a remediation plan has been
    developed.   These   subsequent   evaluations   shall  be
    conducted by the participating administrator,  or  --  in
    school districts having a population exceeding 500,000 --
    by  either  the  principal  or  by an assistant principal
    under the supervision of an administrator qualified under
    Section 24A-3.   The  consulting  teacher  shall  provide
    advice  to  the  teacher rated "unsatisfactory" on how to
    improve teaching skills and to successfully complete  the
    remediation   plan.    The   consulting   teacher   shall
    participate  in  developing the remediation plan, but the
    final decision as to the evaluation shall be done  solely
    by  the administrator, or -- in school districts having a
    population exceeding 500,000 -- by either  the  principal
    or  by an assistant principal under the supervision of an
    administrator qualified under Section  24A-3,  unless  an
    applicable  collective  bargaining  agreement provides to
    the contrary.  Teachers in the remediation process  in  a
    school district having a population exceeding 500,000 are
    not  subject  to  the  annual  evaluations  described  in
    paragraphs  (a) through (e) of this Section.  Evaluations
    at the conclusion of the  remediation  process  shall  be
    separate   and   distinct   from   the   required  annual
    evaluations of teachers and shall not be subject  to  the
    guidelines   and  procedures  relating  to  those  annual
    evaluations.  The evaluator may but is  not  required  to
    use  the  forms  provided  for  the  annual evaluation of
    teachers in the district's evaluation plan.
         (i)  in school districts having a population of less
    than 500,000, reinstatement to  a  schedule  of  biennial
    evaluation  for  any  teacher  who  completes  the 1-year
    remediation plan with a "satisfactory" or better  rating,
    unless   the  district's  plan  regularly  requires  more
    frequent evaluations; and in school  districts  having  a
    population exceeding 500,000, reinstatement to a schedule
    of  biennial evaluation for any teacher who completes the
    90 45 school day remediation plan or extended plan of  up
    to  6-months  with  a "satisfactory" or better rating and
    the one year intensive review  schedule  as  provided  in
    paragraph  (h)  of  this Section with a "satisfactory" or
    better rating,  unless  such  district's  plan  regularly
    requires more frequent evaluations.
         (j)  dismissal  in  accordance with Section 24-12 or
    34-85 of The School Code  of any  teacher  who  fails  to
    complete   any   applicable   remediation   plan  with  a
    "satisfactory" or better rating.  Districts and  teachers
    subject   to   dismissal   hearings  are  precluded  from
    compelling the testimony of consulting teachers  at  such
    hearings  under  Section 24-12 or 34-85, either as to the
    rating  process  or  for  opinions  of  performances   by
    teachers under remediation.
    In   a   district   districts  subject  to  a  collective
bargaining  agreement  as  of  the  effective  date  of  this
amendatory Act of 1997 August 1, 1985, any  changes  made  by
this  amendatory  Act  to the provisions of this Section that
are contrary to the express  terms  and  provisions  of  that
agreement  shall  go  into  effect in that district only upon
expiration  of  that  agreement.   Thereafter,   collectively
bargained  evaluation  plans  shall  at  a  minimum  meet the
standards  of  this  Article.  If  such  a  district  has  an
evaluation plan, however, whether pursuant to the  collective
bargaining  agreement or otherwise, a copy of that plan shall
be submitted to the State Board of Education for  review  and
comment, in accordance with Section 24A-4.
    Nothing  in this Section shall be construed as preventing
immediate dismissal of a teacher for deficiencies  which  are
deemed  irremediable or for actions which are injurious to or
endanger the health or person of students in the classroom or
school. Failure to strictly comply with the time requirements
contained in Section 24A-5 shall not invalidate  the  results
of the remediation plan.
(Source: P.A. 89-15, eff. 5-30-95.)

    (105 ILCS 5/27A-2)
    Sec. 27A-2. Legislative declaration.
    (a)  The General Assembly finds and declares as follows:
         (1)  Encouraging  educational  excellence  is in the
    best interests of the people of this State.
         (2)  There are  educators,  community  members,  and
    parents in Illinois who can offer flexible and innovative
    educational  techniques  and  programs,  but  who lack an
    avenue through which to provide them  within  the  public
    school system.
         (3)  The   enactment   of   legislation  authorizing
    charter schools to operate in Illinois will  promote  new
    options  within the public school system and will provide
    pupils, educators, community members,  and  parents  with
    the stimulus to strive for educational excellence.
    (b)  The General Assembly further finds and declares that
this Article is enacted for the following purposes:
         (1)  To  improve  pupil learning by creating schools
    with high, rigorous standards for pupil performance.
         (2)  To  increase  learning  opportunities  for  all
    pupils,  with  special  emphasis  on  expanded   learning
    experiences for at-risk pupils, consistent, however, with
    an  equal  commitment  to increase learning opportunities
    for all other groups of pupils in a manner that does  not
    discriminate  on  the  basis  of disability, race, creed,
    color,  gender,  national  origin,  religion,   ancestry,
    marital status, or need for special education services.
         (3)  To  encourage  the  use  of innovative teaching
    methods that may  be  different  in  some  respects  than
    others regularly used in the public school system.
         (4)  To  allow the development of new, different, or
    alternative innovative forms of measuring pupil  learning
    and achievement.
         (5)  To  create  new  professional opportunities for
    teachers, including the opportunity to be responsible for
    the learning program at the school site.
         (6)  To provide parents  and  pupils  with  expanded
    choices within the public school system.
         (7)  To encourage parental and community involvement
    with public schools.
         (8)  To hold charter schools accountable for meeting
    rigorous  school  content  standards and to provide those
    schools with the opportunity to improve accountability.
    (c)  In authorizing charter schools, it is the intent  of
the  General  Assembly  to  create  a  legitimate  avenue for
parents, teachers, and community members to take  responsible
risks  and  create new, innovative, and more flexible ways of
educating children within  the  public  school  system.   The
General  Assembly  seeks  to  create opportunities within the
public  school  system  of  Illinois   for   development   of
innovative   and   accountable  teaching  techniques.     The
provisions of this Article should be interpreted liberally to
support the findings and goals of this Section and to advance
a renewed commitment by the State of Illinois to the mission,
goals, and diversity of public education.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/27A-7)
    Sec. 27A-7.  Charter submission.
    (a)  A proposal to establish a charter  school  shall  be
submitted  to  the  State Board and the local school board in
the form of a proposed  contract  entered  into  between  the
local  school  board  and  the  governing  body of a proposed
charter school.  The charter school proposal as submitted  to
the State Board shall include:
         (1)  The  name of the proposed charter school, which
    must include the words "Charter School".
         (2)  The age or grade range, areas of focus, minimum
    and maximum numbers of  pupils  to  be  enrolled  in  the
    charter  school,  and  any  other admission criteria that
    would be legal if used by a school district.
         (3)  A description of and address for  the  physical
    plant  in  which  the  charter  school  will  be located;
    provided that nothing in the Article shall be  deemed  to
    justify  delaying  or  withholding favorable action on or
    approval  of  a  charter  school  proposal  because   the
    building  or  buildings in which the charter school is to
    be located have not been acquired or rented at the time a
    charter school proposal is submitted  or  approved  or  a
    charter  school contract is entered into or submitted for
    certification or certified, so long as  the  proposal  or
    submission identifies and names at least 2 sites that are
    potentially available as a charter school facility by the
    time the charter school is to open.
         (4)  The  mission  statement  of the charter school,
    which must be  consistent  with  the  General  Assembly's
    declared  purposes; provided that nothing in this Article
    shall be construed to require that, in order  to  receive
    favorable  consideration  and  approval, a charter school
    proposal  demonstrate  unequivocally  that  the   charter
    school  will  be  able  to  meet  each  of those declared
    purposes, it being the intention of the  Charter  Schools
    Law  that  those  purposes  be  recognized  as goals that
    charter schools must aspire to attain.
         (5)  The goals, objectives,  and  pupil  performance
    standards to be achieved by the charter school.
         (6)  In  the  case  of  a  proposal  to  establish a
    charter school by converting an existing public school or
    attendance center to charter school status, evidence that
    the proposed formation of the charter school has received
    the required approval of from  certified  teachers,  from
    parents  and  guardians, and, if applicable, from a local
    school council as provided in subsection (b)  of  Section
    27A-8.
         (7)  A   description   of   the   charter   school's
    educational   program,   pupil   performance   standards,
    curriculum,  school  year,  school  days,  and  hours  of
    operation.
         (8)  A  description of the charter school's plan for
    evaluating pupil performance, the  types  of  assessments
    that  will  be  used  to  measure  pupil progress towards
    achievement of the school's pupil performance  standards,
    the  timeline for achievement of those standards, and the
    procedures for taking corrective action in the event that
    pupil performance at the charter school falls below those
    standards.
         (9)  Evidence that  the  terms  of  the  charter  as
    proposed  are  economically  sound  for  both the charter
    school and the school district, a proposed budget for the
    term of the charter, a description of the manner in which
    an annual  audit  of  the  financial  and  administrative
    operations  of the charter school, including any services
    provided by the school district, are to be conducted, and
    a plan for the  displacement  of  pupils,  teachers,  and
    other employees who will not attend or be employed in the
    charter school.
         (10)  A  description of the governance and operation
    of the charter school, including the nature and extent of
    parental,   professional    educator,    and    community
    involvement  in  the  governance  and  operation  of  the
    charter school.
         (11)  An  explanation  of the relationship that will
    exist between  the  charter  school  and  its  employees,
    including  evidence  that  the  terms  and  conditions of
    employment have been addressed  with  affected  employees
    and  their recognized representative, if any.  However, a
    bargaining unit of  charter  school  employees  shall  be
    separate  and  distinct  from any bargaining units formed
    from employees of a school district in which the  charter
    school is located.
         (12)  An  agreement  between  the  parties regarding
    their respective legal liability and applicable insurance
    coverage.
         (13)  A description of how the charter school  plans
    to  meet  the  transportation needs of its pupils,  and a
    plan  for  addressing   the   transportation   needs   of
    low-income and at-risk pupils.
         (14)  The  proposed  effective  date and term of the
    charter;  provided  that  the  first  day  of  the  first
    academic year and the first day of the fiscal year  shall
    be  no earlier than August 15 and no later than September
    15 of  a  calendar  year  of  the  charter  school  shall
    coincide  with the first day of the academic year and the
    first  day  of  the  fiscal  year  of  the  local  school
    district.
         (15)  Any other information reasonably  required  by
    the State Board of Education.
    (b)  A  proposal  to  establish  a  charter school may be
initiated by individuals  or  organizations  that  will  have
majority  representation  on  the board of directors or other
governing body of the corporation  or  other  discrete  legal
entity  that  is  to  be  established to operate the proposed
charter school,  or  by  the  board  of  directors  or  other
governing body of a discrete legal entity already existing or
established  to  operate  the  proposed  charter school.  The
individuals or organizations referred to in  this  subsection
may  be  school teachers, school administrators, local school
councils, colleges or universities or their faculty  members,
public  community  colleges  or  their  instructors  or other
representatives, corporations, or  other  entities  or  their
representatives.   The  proposal  shall  be  submitted to the
local school board for consideration and, if appropriate, for
development of a proposed contract to  be  submitted  to  the
State Board  for certification under Section 27A-6.
    (c)  The  local  school board may not without the consent
of the governing body of the  charter  school  condition  its
approval  of  a  charter  school proposal on acceptance of an
agreement to operate under State  laws  and  regulations  and
local  school board policies from which the charter school is
otherwise exempted under this Article.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/27A-8)
    Sec. 27A-8.  Evaluation of charter proposals.
    (a)  In evaluating any charter school proposal  submitted
to  it,  the  local  school  board  shall  give preference to
proposals that:
         (1)  demonstrate  a  high  level  of  local   pupil,
    parental,   community,  business,  and  school  personnel
    support;
         (2)  set   rigorous   levels   of   expected   pupil
    achievement and demonstrate feasible plans for  attaining
    those levels of achievement; and
         (3)  are  designed to enroll and serve a substantial
    proportion of at-risk children; provided that nothing  in
    the Charter Schools Law shall be construed as intended to
    limit  the establishment of charter schools to those that
    serve a substantial portion of at-risk children or to  in
    any   manner   restrict,   limit,   or   discourage   the
    establishment  of  charter  schools that enroll and serve
    other   pupil   populations   under    a    nonexclusive,
    nondiscriminatory admissions policy.
    (b)  In  the  case  of  a proposal to establish a charter
school by converting an existing public school or  attendance
center  to  charter school status, evidence that the proposed
formation of the charter school has received majority support
from certified teachers and from parents and guardians in the
school or attendance center affected by the proposed charter,
and, if applicable, from a local  school  council,  shall  be

demonstrated  by  a petition in support of the charter school
signed by certified teachers and a petition in support of the
charter school  signed  by  parents  and  guardians  and,  if
applicable,  by  a vote of the local school council held at a
public meeting.  In  the  case  of  all  other  proposals  to
establish a charter school, evidence of sufficient support to
fill  the number of pupil seats set forth in the proposal may
shall be demonstrated by a petition in support of the charter
school signed by parents and guardians of  students  eligible
to  attend the charter school. In all cases, the individuals,
organizations, or  entities  who  initiate  the  proposal  to
establish  a  charter  school may elect, in lieu of including
any petition referred to in this subsection as a part of  the
proposal  submitted to the local school board, to demonstrate
that the charter school has received the support referred  to
in   this   subsection  by  other  evidence  and  information
presented at the public meeting that the local  school  board
is required to convene under this Section.
    (c)  Within  45  days  of  receipt  of  a  charter school
proposal, the local  school  board  shall  convene  a  public
meeting  to  obtain  information  to  assist the board in its
decision to grant or deny the charter school proposal.
    (d)  Notice  of  the  public  meeting  required  by  this
Section shall be published in a community newspaper published
in the school district  in  which  the  proposed  charter  is
located  and,  if  there  is  no  such  newspaper,  then in a
newspaper published in the county and having  circulation  in
the school district.  The notices shall be published not more
than  10  days  nor  less  than 5 days before the meeting and
shall state  that  information  regarding  a  charter  school
proposal  will be heard at the meeting.  Copies of the notice
shall also be posted at appropriate locations in  the  school
or  attendance center proposed to be established as a charter
school, the public schools in the school  district,  and  the
local school board office.
    (e)  Within  30  days  of  the  public meeting, the local
school board shall vote, in a public meeting, to either grant
or deny the charter school proposal.
    (f)  Within 7 days of the public meeting  required  under
subsection  (e),  the  local school board shall file a report
with to the State Board granting or  denying  the  whether  a
proposal  has  been  granted  or  denied.  Within  14 days of
receipt of the local school board's report, the  State  Board
shall  determine  whether  the  approved  charter proposal is
consistent with the provisions of this Article  and,  if  the
approved  proposal complies, certify the proposal pursuant to
Section 27A-6.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/27A-9)
    Sec. 27A-9. Term of charter; renewal.
    (a)  A charter may be granted for a period not less  than
3 and not more than 5 school years.  A charter may be renewed
in incremental periods not to exceed 5 school years.
    (b)  A  charter  school renewal proposal submitted to the
local school board shall contain:
         (1)  A report on the progress of the charter  school
    in  achieving  the  goals,  objectives, pupil performance
    standards, content standards,  and  other  terms  of  the
    initial approved charter proposal; and
         (2)  A  financial statement that discloses the costs
    of  administration,  instruction,  and   other   spending
    categories  for the charter school that is understandable
    to the general public and that will allow  comparison  of
    those   costs   to  other  schools  or  other  comparable
    organizations, in a format required by the State Board.
    (c)  A charter may be revoked or not renewed if the local
school board clearly demonstrates determines that the charter
school did any of  the  following,  or  otherwise  failed  to
comply with the requirements of this law for other good cause
shown:
         (1)  Committed  a  material  violation of any of the
    conditions, standards, or procedures  set  forth  in  the
    charter.
         (2)  Failed  to  meet  or  make  reasonable progress
    toward achievement of  the  content  standards  or  pupil
    performance standards identified in the charter.
         (3)  Failed  to meet generally accepted standards of
    fiscal management.
         (4)  Violated any provision of law  from  which  the
    charter school was not exempted.
    (d)  (Blank).  In  addition, a charter may not be renewed
if the local school board determines that it is  not  in  the
interest of the pupils residing within the school district or
service area to continue the operation of the charter school.
    (e)  Notice  of  a local school board's decision to deny,
revoke or not to renew a charter shall  be  provided  to  the
State  Board.  The  State  Board  may reverse a local board's
decision if the State Board finds that the charter school  or
charter  school  proposal  (i)  is  in  compliance  with this
Article, and (ii) is in the best interests of the students it
is designed to serve. Final  decisions  of  the  State  Board
shall  be subject to judicial review under the Administrative
Review Law.
    (f)  Notwithstanding other provisions of this Article, if
the State Board on appeal reverses a local board's  decision,
the State Board shall act as the authorized chartering entity
for  the  charter  school.  The State Board shall approve and
certify the charter and shall  perform  all  functions  under
this  Article  otherwise performed by the local school board.
The State Board shall report the aggregate number of  charter
school  pupils resident in a school district to that district
and shall notify the district of the amount of funding to  be
paid  by the State Board to the charter school enrolling such
students.   The  State  Board  shall  withhold   from   funds
otherwise  due  the  district  the  funds  authorized by this
Article to be paid to the charter school and shall  pay  such
amounts to the charter school.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/27A-11)
    Sec. 27A-11.  Financing.
    (a)  For  purposes of the School Code, pupils enrolled in
a charter school shall be included in the pupil enrollment of
the school district within which  the  pupil  resides.   Each
charter  school  (i)  shall  determine the school district in
which each pupil  who  is  enrolled  in  the  charter  school
resides, and (ii) shall report the aggregate number of pupils
resident of a school district who are enrolled in the charter
school  to  the school district in which those pupils reside,
and (iii) shall maintain accurate records of daily attendance
that shall be deemed sufficient to file claims under  Section
18-8  notwithstanding  any other requirements of that Section
regarding hours of instruction and teacher certification.
    (b)  As part of a charter school  contract,  the  charter
school  and the local school board shall agree on funding and
any services to be provided by the  school  district  to  the
charter  school.  Agreed  funding that a charter school is to
receive from the local school board for a school  year  shall
be  paid  in equal quarterly installments with the payment of
the installment for the first quarter being  made  not  later
than  July  1,  unless  the  charter  establishes a different
payment schedule.
    All services  centrally  or  otherwise  provided  by  the
school district including, but not limited to, food services,
custodial  services, maintenance, curriculum, media services,
libraries, transportation, and warehousing shall  be  subject
to  negotiation between a charter school and the local school
board and paid for out of the revenues negotiated pursuant to
this subsection (b); provided that  the  local  school  board
shall not attempt, by negotiation or otherwise, to obligate a
charter school to provide pupil transportation for pupils for
whom  a  district  is  not required to provide transportation
under the criteria set forth in subsection (a)(13) of Section
27A-7.
    In no event shall the funding be less  than  75%  95%  or
more  than  125%  105%  of  the  school district's per capita
student tuition multiplied by the number of students residing
in the district who are enrolled in the charter school.
    It is the intent of the General Assembly that funding and
service agreements under this subsection (b) shall be neither
a financial incentive nor a  financial  disincentive  to  the
establishment of a charter school.
    Fees collected from students enrolled at a charter school
shall be retained by the charter school.
    (c)  Notwithstanding  subsection (b) of this Section, the
proportionate share of State and federal resources  generated
by  students with disabilities or staff serving them shall be
directed to charter schools enrolling those students by their
school districts or administrative units.  The  proportionate
share  of  moneys  generated  under  other  federal  or State
categorical aid programs shall be directed to charter schools
serving students eligible for that aid.
    (d)(1)  The  governing  body  of  a  charter  school   is
authorized  to accept gifts, donations, or grants of any kind
made to the charter  school  and  to  expend  or  use  gifts,
donations,  or  grants  in  accordance  with  the  conditions
prescribed  by the donor; however, a gift, donation, or grant
may not be accepted by the governing body if it is subject to
any condition contrary to applicable law or contrary  to  the
terms  of  the  contract  between  the charter school and the
local school board.  Charter schools shall be  encouraged  to
solicit  and  utilize  community volunteer speakers and other
instructional resources when  providing  instruction  on  the
Holocaust and other historical events.
    (2)  From  amounts  appropriated  to  the State Board for
purposes of this subsection (d)(2), the State Board may  make
loans to charter schools established under this Article to be
used  by  those  schools  to  defer  their  start-up costs of
acquiring  textbooks  and  laboratory  and  other   equipment
required for student instruction. Any such loan shall be made
to  a  charter  school  at  the  inception of the term of its
charter, under terms established  by  the  State  Board,  and
shall  be  repaid  by the charter school over the term of its
charter.
    (e)  No later than January 1, 1997, the State Board shall
issue a report to  the  General  Assembly  and  the  Governor
describing  the charter schools certified under this Article,
their geographic locations, their areas  of  focus,  and  the
numbers of school children served by them.
    (f)  The  State  Board shall provide technical assistance
to  persons  and  groups  preparing   or   revising   charter
applications.
    (g)  At  the  non-renewal  or  revocation of its charter,
each charter school  shall  refund  to  the  local  board  of
education all unspent funds.
    (h)  A  charter  school is authorized to incur temporary,
short term debt to pay operating expenses in anticipation  of
receipt of funds from the local school board.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/34-8.4)
    Sec. 34-8.4.  Intervention.  The Chicago Schools Academic
Accountability  Council  may  recommend to the Chicago School
Reform  Board  of  Trustees  that  any   school   placed   on
remediation or probation under Section 34-8.3 or schools that
for  the  3 consecutive school years of 1992-1993, 1993-1994,
and  1994-1995  have  met  the  State  Board  of  Education's
category of "does not meet expectations" be made  subject  to
intervention  under  this Section 34-8.4.  In addition to any
powers created under this Section, the  Trustees  shall  have
all  powers  created  under  Section  34-8.3  with respect to
schools subjected to intervention.
    Prior  to  subjecting  a  school  to  intervention,   the
Trustees  shall conduct a public hearing and make findings of
facts concerning the recommendation of  the  Chicago  Schools
Academic  Accountability  Council and the factors causing the
failure of the school to adequately  perform.   The  Trustees
shall  afford  an  opportunity  at the hearing for interested
persons to comment  about  the  intervention  recommendation.
After the hearing has been held and completion of findings of
fact,  the  Trustees  shall  make  a determination whether to
subject the school to intervention.
    If the Trustees determine that a school shall be  subject
to  intervention  under  this  Section,  the  Trustees  shall
develop an intervention implementation plan and shall cause a
performance  evaluation  to  be  made of each employee at the
school.   Upon  consideration  of   such   evaluations,   and
consistent  with  the  intervention  implementation plan, the
Trustees may reassign, layoff, or dismiss  any  employees  at
the  attendance  center,  notwithstanding  the  provisions of
Sections 24A-5 and 34-85.
    The chief educational officer shall appoint  a  principal
for  the school and shall set the terms and conditions of the
principal's contract, which in no case may be longer  than  2
years.    The   principal   shall  select  all  teachers  and
non-certified personnel for the school as may  be  necessary.
Any  provision  of  Section  34-8.1  that conflicts with this
Section shall not apply to a school subjected to intervention
under this Section.
    If pursuant to this Section, the general  superintendent,
with  the  approval  of  the  board,  orders new local school
council elections, the general superintendent shall carry out
the responsibilities of the local school council for a school
subject to intervention until the new  local  school  council
members are elected and trained.
    Each  school  year,  5% of the supplemental general State
aid Chapter 1  funds  distributed  to  a  school  subject  to
intervention   during   that  school  year  under  subsection
5(i)(1)(a) of part A of Section 18-8  or  subsection  (H)  of
Section  18-8.05  shall  be  used  for  employee  performance
incentives.    The Trustees shall prepare a report evaluating
the results of any interventions undertaken pursuant to  this
Section    and    shall   make   recommendations   concerning
implementation  of  special   programs   for   dealing   with
underperforming  schools  on  an  ongoing basis.  This report
shall be submitted to the State Superintendent  of  Education
and Mayor of the City of Chicago by January 1, 1999.
(Source: P.A. 89-15, eff. 5-30-95; 89-698, eff. 1-14-97.)

    (105 ILCS 5/34-18) (from Ch. 122, par. 34-18)
    Sec.  34-18.   Powers  of  the  board.   The  board shall
exercise general supervision and jurisdiction over the public
education and the public school  system  of  the  city,  and,
except  as  otherwise  provided  by  this Article, shall have
power:
         1.  To make suitable provision for the establishment
    and maintenance throughout the year or for  such  portion
    thereof  as  it  may  direct,  not less than 9 months, of
    schools  of  all  grades  and  kinds,  including   normal
    schools,   high   schools,  night  schools,  schools  for
    defectives and delinquents, parental and truant  schools,
    schools for the blind, the deaf and the crippled, schools
    or   classes   in   manual  training,  constructural  and
    vocational teaching, domestic arts and physical  culture,
    vocation  and  extension schools and lecture courses, and
    all other educational courses and  facilities,  including
    establishing,   equipping,   maintaining   and  operating
    playgrounds and recreational programs, when such programs
    are conducted in, adjacent  to,  or  connected  with  any
    public   school   under   the   general  supervision  and
    jurisdiction of the board;  provided,  however,  that  in
    allocating  funds  from year to year for the operation of
    all attendance centers within  the  district,  the  board
    shall  ensure that supplemental general State aid Chapter
    1 funds are allocated  and  applied  in  accordance  with
    Section 18-8 or 18-8.05. To admit to such schools without
    charge  foreign exchange students who are participants in
    an organized exchange student program which is authorized
    by the board. The board  shall  permit  all  students  to
    enroll   in  apprenticeship  programs  in  trade  schools
    operated  by  the  board,  whether  those  programs   are
    union-sponsored or not.   No  student  shall  be  refused
    admission   into  or  be  excluded  from  any  course  of
    instruction offered in the common schools  by  reason  of
    that  student's  sex.   No  student shall be denied equal
    access to physical education and interscholastic athletic
    programs supported from school district funds  or  denied
    participation   in   comparable  physical  education  and
    athletic programs solely by reason of the student's  sex.
    Equal  access  to programs supported from school district
    funds and comparable programs will be  defined  in  rules
    promulgated   by   the   State   Board  of  Education  in
    consultation with the Illinois High  School  Association.
    Notwithstanding  any  other  provision  of  this Article,
    neither the board  of  education  nor  any  local  school
    council  or  other  school  official shall recommend that
    children  with  disabilities  be  placed   into   regular
    education   classrooms   unless   those   children   with
    disabilities  are provided with supplementary services to
    assist  them  so  that  they  benefit  from  the  regular
    classroom instruction and are included on  the  teacher's
    regular education class register;
         2.  To   furnish   lunches  to  pupils,  to  make  a
    reasonable charge therefor, and to use school  funds  for
    the  payment  of such expenses as the board may determine
    are necessary in conducting the school lunch program;
         3.  To co-operate with the circuit court;
         4.  To  make  arrangements  with   the   public   or
    quasi-public  libraries  and museums for the use of their
    facilities by teachers and pupils of the public schools;
         5.  To employ dentists and  prescribe  their  duties
    for  the  purpose  of treating the pupils in the schools,
    but accepting  such  treatment  shall  be  optional  with
    parents or guardians;
         6.  To   grant   the   use  of  assembly  halls  and
    classrooms when not otherwise  needed,  including  light,
    heat, and attendants, for free public lectures, concerts,
    and  other  educational  and  social  interests,  free of
    charge,  under  such  provisions  and  control   as   the
    principal   of   the   affected   attendance  center  may
    prescribe;
         7.  To apportion the pupils to the several  schools;
    provided   that  no  pupil  shall  be  excluded  from  or
    segregated in any such school on account  of  his  color,
    race,  sex,  or  nationality.  The  board shall take into
    consideration  the  prevention  of  segregation  and  the
    elimination of separation of children in  public  schools
    because  of color, race, sex, or nationality. Except that
    children may be  committed  to  or  attend  parental  and
    social  adjustment  schools  established  and  maintained
    either for boys or girls only.  All records pertaining to
    the  creation, alteration or revision of attendance areas
    shall be open to the public.  Nothing herein shall  limit
    the  board's authority to establish multi-area attendance
    centers  or  other   student   assignment   systems   for
    desegregation purposes or otherwise, and to apportion the
    pupils to the several schools.  Furthermore, beginning in
    school  year 1994-95, pursuant to a board plan adopted by
    October 1, 1993, the board shall offer, commencing  on  a
    phased-in  basis, the opportunity for families within the
    school district to apply for enrollment of their children
    in any attendance center within the school district which
    does not have selective admission  requirements  approved
    by the board.  The appropriate geographical area in which
    such open enrollment may be exercised shall be determined
    by the board of education.  Such children may be admitted
    to  any such attendance center on a space available basis
    after  all  children  residing  within  such   attendance
    center's  area  have been accommodated.  If the number of
    applicants from outside the attendance  area  exceed  the
    space  available,  then  successful  applicants  shall be
    selected by  lottery.   The  board  of  education's  open
    enrollment  plan  must  include provisions that allow low
    income students to have access to  transportation  needed
    to  exercise  school choice.  Open enrollment shall be in
    compliance with the provisions of the Consent Decree  and
    Desegregation Plan cited in Section 34-1.01;
         8.  To  approve  programs and policies for providing
    transportation services to students. Nothing herein shall
    be construed to permit or  empower  the  State  Board  of
    Education  to  order, mandate, or require busing or other
    transportation of pupils for  the  purpose  of  achieving
    racial balance in any school;
         9.  Subject  to  the limitations in this Article, to
    establish and approve system-wide  curriculum  objectives
    and  standards,  including  graduation  standards,  which
    reflect  the multi-cultural diversity in the city and are
    consistent with State law, provided that for all purposes
    of this Article courses or proficiency in  American  Sign
    Language   shall  be  deemed  to  constitute  courses  or
    proficiency  in  a  foreign  language;  and   to   employ
    principals  and  teachers,  appointed as provided in this
    Article, and fix their  compensation.   The  board  shall
    prepare   such  reports  related  to  minimal  competency
    testing as  may  be  requested  by  the  State  Board  of
    Education,  and  in  addition  shall  monitor and approve
    special education and bilingual  education  programs  and
    policies  within  the district to assure that appropriate
    services are provided in accordance with applicable State
    and federal  laws  to  children  requiring  services  and
    education in those areas;
         10.  To  employ  non-teaching  personnel  or utilize
    volunteer personnel  for:  (i)  non-teaching  duties  not
    requiring instructional judgment or evaluation of pupils,
    including  library  duties;  and  (ii)  supervising study
    halls,  long  distance  teaching  reception  areas   used
    incident   to   instructional   programs  transmitted  by
    electronic media such as  computers,  video,  and  audio,
    detention  and  discipline  areas,  and  school-sponsored
    extracurricular activities. The board may further utilize
    volunteer    non-certificated    personnel    or   employ
    non-certificated personnel to assist in  the  instruction
    of  pupils  under  the immediate supervision of a teacher
    holding a valid certificate, directly engaged in teaching
    subject matter or conducting  activities;  provided  that
    the   teacher   shall   be   continuously  aware  of  the
    non-certificated persons' activities and shall be able to
    control or modify them. The general superintendent  shall
    determine  qualifications  of  such  personnel  and shall
    prescribe rules for determining the duties and activities
    to be assigned to such personnel;
         11.  To provide television studio facilities in  not
    to exceed one school building and to provide programs for
    educational  purposes,  provided, however, that the board
    shall not construct,  acquire,  operate,  or  maintain  a
    television  transmitter;  to  grant the use of its studio
    facilities to a licensed television  station  located  in
    the  school  district; and to maintain and operate not to
    exceed one school radio transmitting station and  provide
    programs for educational purposes;
         12.  To   offer,   if  deemed  appropriate,  outdoor
    education courses, including field trips within the State
    of Illinois,  or  adjacent  states,  and  to  use  school
    educational  funds  for  the  expense of the said outdoor
    educational programs, whether within the school  district
    or not;
         13.  During  that  period  of  the calendar year not
    embraced within the regular school term, to  provide  and
    conduct  courses  in subject matters normally embraced in
    the program of the schools during the regular school term
    and  to  give  regular  school  credit  for  satisfactory
    completion by the student  of  such  courses  as  may  be
    approved for credit by the State Board of Education;
         14.  To  insure against any loss or liability of the
    board, the former  School  Board  Nominating  Commission,
    Local  School  Councils,  the  Chicago  Schools  Academic
    Accountability   Council,   or   the  former  Subdistrict
    Councils or of any member,  officer,  agent  or  employee
    thereof,  resulting  from  alleged  violations  of  civil
    rights  arising  from  incidents  occurring  on  or after
    September 5, 1967 or from the wrongful or  negligent  act
    or  omission  of any such person whether occurring within
    or without the school  premises,  provided  the  officer,
    agent  or  employee  was,  at  the  time  of  the alleged
    violation of civil rights or wrongful  act  or  omission,
    acting  within  the  scope  of  his  employment  or under
    direction  of  the  board,  the   former   School   Board
    Nominating   Commission,  the  Chicago  Schools  Academic
    Accountability Council, Local  School  Councils,  or  the
    former  Subdistrict  Councils;  and  to  provide  for  or
    participate  in  insurance  plans  for  its  officers and
    employees,  including  but  not  limited  to   retirement
    annuities, medical, surgical and hospitalization benefits
    in  such  types  and  amounts as may be determined by the
    board; provided, however, that the board  shall  contract
    for   such  insurance  only  with  an  insurance  company
    authorized to do business in this State.  Such  insurance
    may include provision for employees who rely on treatment
    by  prayer  or  spiritual  means  alone  for  healing, in
    accordance with the tenets and practice of  a  recognized
    religious denomination;
         15.  To  contract  with the corporate authorities of
    any municipality or the county board of  any  county,  as
    the case may be, to provide for the regulation of traffic
    in parking areas of property used for school purposes, in
    such  manner  as  is  provided  by  Section 11-209 of The
    Illinois Vehicle Code, approved September  29,  1969,  as
    amended;
         16.  To  provide,  on  an equal basis, access to the
    school campus to the official recruiting  representatives
    of the armed forces of Illinois and the United States for
    the purposes of informing students of the educational and
    career  opportunities  available  in  the military if the
    board has provided such access to persons or groups whose
    purpose is  to  acquaint  students  with  educational  or
    occupational  opportunities available to them.  The board
    is not required to  give  greater  notice  regarding  the
    right  of  access  to  recruiting representatives than is
    given to other persons and groups;
         17. (a)  To sell  or  market  any  computer  program
    developed by an employee of the school district, provided
    that  such  employee  developed the computer program as a
    direct result of  his  or  her  duties  with  the  school
    district   or  through  the  utilization  of  the  school
    district resources  or  facilities.    The  employee  who
    developed the computer program shall be entitled to share
    in the proceeds of such sale or marketing of the computer
    program.   The  distribution of such proceeds between the
    employee and the school district shall be as agreed  upon
    by  the  employee  and  the  school district, except that
    neither the employee nor the school district may  receive
    more  than  90% of such proceeds.  The negotiation for an
    employee who is represented by  an  exclusive  bargaining
    representative   may  be  conducted  by  such  bargaining
    representative at the employee's request.
         (b)  For the purpose of this paragraph 17:
              (1)  "Computer" means an internally programmed,
         general   purpose   digital   device   capable    of
         automatically  accepting  data,  processing data and
         supplying the results of the operation.
              (2)  "Computer program" means a series of coded
         instructions or statements in a form acceptable to a
         computer, which causes the computer to process  data
         in order to achieve a certain result.
              (3)  "Proceeds"   means  profits  derived  from
         marketing or sale of a product after  deducting  the
         expenses of developing and marketing such product;
         18.  To  delegate  to  the general superintendent of
    schools,  by  resolution,  the   authority   to   approve
    contracts and expenditures in amounts of $10,000 or less;
         19.  Upon  the  written  request  of an employee, to
    withhold from the compensation of that employee any dues,
    payments or contributions payable by such employee to any
    labor organization as defined in the Illinois Educational
    Labor Relations Act.  Under such arrangement,  an  amount
    shall  be withheld from each regular payroll period which
    is equal to the pro rata share of the  annual  dues  plus
    any  payments  or  contributions,  and  the  board  shall
    transmit   such   withholdings  to  the  specified  labor
    organization within 10 working days from the time of  the
    withholding;
         19a.  Upon receipt of notice from the comptroller of
    a  municipality with a population of 500,000 or more that
    a debt is due and owing the municipality by  an  employee
    of  the  Chicago  School  Reform  Board  of  Trustees, to
    withhold, from the compensation  of  that  employee,  the
    amount  of  the  debt  that  is due and owing and pay the
    amount withheld to the municipality;  provided,  however,
    that  the  amount  deducted  from  any one salary or wage
    payment shall not exceed 25% of the  net  amount  of  the
    payment.   Before  the  Board deducts any amount from any
    salary or wage of an employee under this  paragraph,  the
    municipality  shall  certify  that  the employee has been
    afforded an opportunity for a hearing to dispute the debt
    that is due and owing the municipality.  For purposes  of
    this  paragraph,  "net  amount"  means  that  part of the
    salary or wage payment remaining after the  deduction  of
    any  amounts required by law to be deducted and "debt due
    and owing" means (i) a specified sum of money owed to the
    municipality for city services, work, or goods, after the
    period  granted  for  payment  has  expired,  or  (ii)  a
    specified sum of money owed to the municipality  pursuant
    to  a  court  order or order of an administrative hearing
    officer after  the  exhaustion  of,  or  the  failure  to
    exhaust, judicial review;
         20.  The  board is encouraged to employ a sufficient
    number of  certified  school  counselors  to  maintain  a
    student/counselor  ratio  of  250  to  1 by July 1, 1990.
    Each counselor shall spend at least 75% of his work  time
    in  direct  contact  with  students  and shall maintain a
    record of such time;
         21.  To make available to  students  vocational  and
    career  counseling  and  to  establish  5  special career
    counseling days for students and parents.  On these  days
    representatives  of local businesses and industries shall
    be invited to the school campus and shall inform students
    of career opportunities available to them in the  various
    businesses  and  industries.  Special consideration shall
    be given to counseling minority  students  as  to  career
    opportunities  available  to them in various fields.  For
    the purposes of this paragraph, minority student means  a
    person who is:
              (a)  Black  (a  person having origins in any of
         the black racial groups in Africa);
              (b)  Hispanic   (a   person   of   Spanish   or
         Portuguese culture with origins in Mexico, South  or
         Central   America,   or   the   Caribbean   islands,
         regardless of race);
              (c)  Asian American (a person having origins in
         any  of  the  original  peoples  of  the  Far  East,
         Southeast  Asia,  the  Indian  Subcontinent  or  the
         Pacific Islands); or
              (d)  American   Indian  or  Alaskan  Native  (a
         person having origins in any of the original peoples
         of North America).
         Counseling days shall not  be  in  lieu  of  regular
    school days;
         22.  To  report  to the State Board of Education the
    annual student dropout rate and number  of  students  who
    graduate from, transfer from or otherwise leave bilingual
    programs;
         23.  Except  as otherwise provided in the Abused and
    Neglected Child Reporting Act or other  applicable  State
    or  federal  law, to permit school officials to withhold,
    from any person, information on the  whereabouts  of  any
    child  removed  from  school  premises when the child has
    been  taken  into  protective  custody  as  a  victim  of
    suspected child abuse.   School  officials  shall  direct
    such  person  to  the  Department  of Children and Family
    Services, or to  the  local  law  enforcement  agency  if
    appropriate;
         24.  To develop a policy, based on the current state
    of  existing  school facilities, projected enrollment and
    efficient utilization of available resources, for capital
    improvement of schools and school  buildings  within  the
    district,  addressing  in  that  policy both the relative
    priority for major repairs, renovations and additions  to
    school  facilities,  and the advisability or necessity of
    building  new  school  facilities  or  closing   existing
    schools to meet current or projected demographic patterns
    within the district;
         25.  To make available to the students in every high
    school  attendance center the ability to take all courses
    necessary to comply with the Board of Higher  Education's
    college entrance criteria effective in 1993;
         26.  To   encourage   mid-career  changes  into  the
    teaching  profession,  whereby  qualified   professionals
    become   certified   teachers,  by  allowing  credit  for
    professional   employment   in   related   fields    when
    determining point of entry on teacher pay scale;
         27.  To  provide  or  contract out training programs
    for administrative personnel and principals with  revised
    or  expanded  duties  pursuant  to  this  Act in order to
    assure they have the  knowledge  and  skills  to  perform
    their duties;
         28.  To establish a fund for the prioritized special
    needs programs, and to allocate such funds and other lump
    sum  amounts  to  each  attendance  center  in  a  manner
    consistent  with  the  provisions  of  part  4 of Section
    34-2.3.  Nothing in this paragraph shall be construed  to
    require  any additional appropriations of State funds for
    this purpose;
         29.  (Blank);
         30.  Notwithstanding any other provision of this Act
    or any other law to the contrary, to contract with  third
    parties  for  services  otherwise performed by employees,
    including those in a bargaining unit, and to layoff those
    employees upon 14 days written  notice  to  the  affected
    employees.   Those  contracts  may be for a period not to
    exceed 5 years and may be awarded on a system-wide basis;
         31.  To  promulgate  rules  establishing  procedures
    governing the layoff or reduction in force  of  employees
    and  the  recall  of  such  employees, including, but not
    limited to, criteria  for  such  layoffs,  reductions  in
    force  or  recall rights of such employees and the weight
    to be given to any particular criterion.   Such  criteria
    shall  take  into  account  factors including, but not be
    limited to, qualifications,  certifications,  experience,
    performance ratings or evaluations, and any other factors
    relating to an employee's job performance; and
         32.  To  develop a policy to prevent nepotism in the
    hiring of personnel or the selection of contractors.
    The specifications of the powers herein granted  are  not
to  be  construed  as  exclusive  but  the  board  shall also
exercise all other powers  that  they  may  be  requisite  or
proper  for  the  maintenance and the development of a public
school system, not inconsistent with the other provisions  of
this  Article  or  provisions of this Code which apply to all
school districts.
    In addition to the powers herein granted  and  authorized
to  be  exercised  by  the board, it shall be the duty of the
board to review or to direct independent reviews  of  special
education  expenditures  and services. The board shall file a
report of such review with the General Assembly on or  before
May 1, 1990.
(Source:  P.A.  89-15,  eff.  5-30-95;  89-397, eff. 8-20-95;
89-626, eff. 8-9-96; 90-22, eff. 6-20-97.)

    (105 ILCS 5/34-18.17 new)
    Sec. 34-18.17.  No pass-no play policy.   Beginning  with
the  1998-99  school  year,  the  board  of  education  shall
establish,  implement,  and  enforce a uniform and consistent
policy under which a student in any of grades  9  through  12
who fails to maintain a specified minimum grade point average
or  a  specified  minimum  grade  in each course in which the
student  is  enrolled  or  both  is  suspended  from  further
participation in  any  school-sponsored  or  school-supported
athletic or extracurricular activities for a specified period
or  until  a specified minimum grade point average or minimum
grade or both are  earned  by  the  student.   The  board  of
education  shall  adopt  a policy as required by this Section
not later than one year after  the  effective  date  of  this
amendatory  Act of 1997 and shall concurrently file a copy of
that policy with the State Board  of  Education.   After  the
policy  has  been  in  effect  for  one  year,  the  board of
education shall  file  a  report  with  the  State  Board  of
Education  setting forth the number and length of suspensions
imposed under the policy during the  period  covered  by  the
report.  If  the board of education already has a policy that
is consistent with the requirements of this Section in effect
on the effective date of this  amendatory  Act  of  1997,  it
shall  file  a  copy  of  that policy with the State Board of
Education within 90 days after the  effective  date  of  this
amendatory  Act  and  shall  file  the annual report required
under this Section 12 months thereafter.

    (105 ILCS 5/34-84) (from Ch. 122, par. 34-84)
    Sec. 34-84.  Appointments  and  promotions  of  teachers.
Appointments  and  promotions  of  teachers shall be made for
merit only, and after satisfactory service for a probationary
period of 3 years  with  respect  to  probationary  employees
employed as full-time teachers in the public school system of
the  district before January 1, 1998 and 4 years with respect
to probationary employees who are first employed as full-time
teachers in the public school system of the  district  on  or
after  January  1,  1998  (during  which period the board may
dismiss or discharge any such probationary employee upon  the
recommendation,  accompanied by the written reasons therefor,
of the general superintendent  of  schools)  appointments  of
teachers shall become permanent, subject to removal for cause
in the manner provided by Section 34-85.
    As  used  in  this Article, "teachers" means and includes
all members of  the  teaching  force  excluding  the  general
superintendent and principals.
    There  shall  be  no  reduction  in teachers because of a
decrease  in  student  membership  or  a  change  in  subject
requirements within the attendance center organization  after
the  20th  day  following  the  first day of the school year,
except  that:   (1)  this  provision  shall  not   apply   to
desegregation  positions, special education positions, or any
other positions funded by State or federal categorical funds,
and (2) at attendance centers maintaining  any  of  grades  9
through  12,  there  may be a second reduction in teachers on
the first day of the second semester of  the  regular  school
term  because of a decrease in student membership or a change
in  subject  requirements  within   the   attendance   center
organization.
    The school principal shall make the decision in selecting
teachers  to  fill  new  and vacant positions consistent with
Section 34-8.1.
(Source: P.A. 88-338; 88-511; 89-15, eff. 5-30-95.)

    Section 5-920.  The Illinois Educational Labor  Relations
Act is amended by changing Sections 5 and 13 as follows:

    (115 ILCS 5/5) (from Ch. 48, par. 1705)
    Sec.  5.   Illinois  Educational  Labor  Relations Board.
(a)  There is hereby created the Illinois  Educational  Labor
Relations  Board  consisting of 5 3 members, no more than 3 2
of whom may be of the same political party, who are residents
of Illinois appointed by the Governor  with  the  advice  and
consent  of  the  Senate.  The  Governor shall appoint to the
Board only persons who have had  a  minimum  of  5  years  of
experience directly related to labor and employment relations
in   representing   educational   employers   or  educational
employees in collective  bargaining  matters.  One  appointed
member  shall  be  designated  at  the  time  of  his  or her
appointment to serve  as  chairman.    Of  the  2  additional
members  appointed  pursuant  to this amendatory Act of 1997,
one shall be designated at the time of his or her appointment
to serve a term of 6 years and the other shall be  designated
at  the  time  of his or her appointment to serve a term of 4
years, with each to serve  until  his  or  her  successor  is
appointed  and  qualified.  In the event the Senate is not in
session at the time the 2 additional  members  are  appointed
pursuant  to  this amendatory Act of 1997, the Governor shall
make those appointments as temporary appointments  until  the
next meeting of the Senate when he shall appoint, by and with
the advice and consent of the Senate, 2 persons to fill those
memberships  for their unexpired terms.  Initial appointments
shall be made within 30 days of the effective  date  of  this
Act.   At  the  organizational meeting of the original Board,
the members shall determine by lot one member to serve for  a
term  of  6 years, one member to serve for a term of 4 years,
and one member to serve for a term of 2 years, with  each  to
serve until his or her successor is appointed and qualified.
    (b)  Each  subsequent  member  shall be appointed in like
manner for a term of 6 years and until his or  her  successor
is  appointed  and  qualified.  Each  member  of the Board is
eligible for reappointment.  Vacancies shall be filled in the
same manner as original appointments for the balance  of  the
unexpired term.
    (c)  The  chairman  shall be paid $50,000 per year, or an
amount set by the Compensation  Review  Board,  whichever  is
greater.   Other  members  of  the  Board  shall each be paid
$45,000 per year, or an amount set by the Compensation Review
Board, whichever is  greater.   They  shall  be  entitled  to
reimbursement  for  necessary  traveling  and  other official
expenditures necessitated by their official duties.
    (d)  Three Two members of the Board constitute  a  quorum
and a vacancy on the board does not impair the right of the 2
remaining members to exercise all of the powers of the Board.
    (e)  Any  member  of  the  Board  may  be  removed by the
Governor, upon notice, for neglect of duty or malfeasance  in
office, but for no other cause.
    (f)  The   Board  may  appoint  or  employ  an  executive
director,  attorneys,  hearing  officers,  and   such   other
employees  as  it  deems  necessary to perform its functions.
The Board shall prescribe the duties  and  qualifications  of
such   persons   appointed   and,   subject   to  the  annual
appropriation,  fix  their  compensation  and   provide   for
reimbursement  of  actual  and necessary expenses incurred in
the performance of their duties.
    (g)  The Board may promulgate rules and regulations which
allow  parties  in  proceedings  before  the  Board   to   be
represented  by  counsel or any other person knowledgeable in
the matters under consideration.
    (h)  To accomplish the objectives and to  carry  out  the
duties  prescribed  by  this  Act,  the  Board  may  subpoena
witnesses,  subpoena the production of books, papers, records
and documents which may be needed as evidence on  any  matter
under inquiry and may administer oaths and affirmations.
    In  cases of neglect or refusal to obey a subpoena issued
to any person, the circuit court in the county in  which  the
investigation  or  the  public  hearing is taking place, upon
application by the Board, may issue an order  requiring  such
person  to  appear before the Board or any member or agent of
the Board to produce evidence or give testimony. A failure to
obey such order may be punished by  the  court  as  in  civil
contempt.
    Any  subpoena,  notice  of  hearing,  or other process or
notice of the Board issued under the provisions of  this  Act
may  be served personally, by registered mail or by leaving a
copy at the principal office of the respondent required to be
served. A return, made and verified by the individual  making
such service and setting forth the manner of such service, is
proof of service. A post office receipt, when registered mail
is  used,  is  proof  of service. All process of any court to
which application may be made under the  provisions  of  this
Act may be served in the county where the persons required to
be served reside or may be found.
    (i)  The Board shall adopt, promulgate, amend, or rescind
rules  and  regulations  in  accordance  with  "The  Illinois
Administrative  Procedure  Act", as now or hereafter amended,
as it deems necessary and feasible to carry out this Act.
    (j)  The Board at the end  of  every  State  fiscal  year
shall  make  a  report  in  writing  to  the Governor and the
General Assembly, stating in detail the work it has  done  in
hearing and deciding cases and otherwise.
(Source: P.A. 85-1393.)

    (115 ILCS 5/13) (from Ch. 48, par. 1713)
    Sec. 13.  Strikes.
    (a)  Notwithstanding the existence of any other provision
in  this  Act or other law, educational employees employed in
school districts organized under Article  34  of  the  School
Code  shall  not engage in a strike at any time during the 18
month period that commences on the  effective  date  of  this
amendatory  Act of 1995.  An educational employee employed in
a school district organized under Article 34  of  the  School
Code  who  participates  in  a  strike  in  violation of this
Section  is  subject  to  discipline  by  the  employer.   In
addition, no educational employer organized under Article  34
of  the  School  Code  may  pay  or  cause  to  be paid to an
educational  employee  who  participates  in  a   strike   in
violation  of this subsection any wages or other compensation
for  any  period  during  which   an   educational   employee
participates  in the strike, except for wages or compensation
earned before participation in the strike.    Notwithstanding
the  existence  of  any  other provision in this Act or other
law, during the 18-month period that strikes  are  prohibited
under  this  subsection  nothing  in this subsection shall be
construed to require an educational employer to submit  to  a
binding dispute resolution process.
    (b)  Notwithstanding the existence of any other provision
in  this  Act  or  any other law, educational employees other
than those employed in  a  school  district  organized  under
Article  34  of  the School Code and, after the expiration of
the 18 month period that commences on the effective  date  of
this  amendatory  Act  of  1995,  educational  employees in a
school district organized under Article 34 of the School Code
shall not engage in  a  strike  except  under  the  following
conditions:
         (1)   they   are   represented   by   an   exclusive
    bargaining representative;
         (2)   mediation has been used without success;
         (3)   at least 10 5 days have elapsed after a notice
    of  intent  to  strike  has  been  given by the exclusive
    bargaining representative to  the  educational  employer,
    the  regional superintendent and the Illinois Educational
    Labor Relations Board;
         (4)   the collective  bargaining  agreement  between
    the  educational  employer  and educational employees, if
    any, has expired; and
         (5)   the  employer  and  the  exclusive  bargaining
    representative have not mutually submitted the unresolved
    issues to arbitration.
    If, however, in the opinion of an employer the strike  is
or  has  become  a  clear and present danger to the health or
safety of the  public,  the  employer  may  initiate  in  the
circuit  court  of  the county in which such danger exists an
action for relief which may include, but is not  limited  to,
injunction.   The court may grant appropriate relief upon the
finding that such clear and present danger exists.  An unfair
practice or other evidence of lack  of  clean  hands  by  the
educational  employer is a defense to such action.  Except as
provided for in this paragraph, the jurisdiction of the court
under this Section is limited by the Labor Dispute Act.
(Source: P.A. 89-15, eff. 5-30-95.)

                         ARTICLE 10

    Section  10-5.  The  Cigarette  Tax  Act  is  amended  by
changing Section 2 as follows:

    (35 ILCS 130/2) (from Ch. 120, par. 453.2)
    Sec. 2.  (a) A tax is imposed upon any person engaged  in
business  as  a  retailer  of cigarettes in this State at the
rate of 5 1/2 mills per cigarette sold, or otherwise disposed
of in the course of such business in this State. In  addition
to  any  other tax imposed by this Act, a tax is imposed upon
any person engaged in business as a retailer of cigarettes in
this State at a rate  of  1/2  mill  per  cigarette  sold  or
otherwise  disposed of in the course of such business in this
State on and after January 1, 1947, and shall  be  paid  into
the Metropolitan Fair and Exposition Authority Reconstruction
Fund. On and after December 1, 1985, in addition to any other
tax  imposed  by  this  Act, a tax is imposed upon any person
engaged in business as a retailer of cigarettes in this State
at a rate of 4 mills per cigarette sold or otherwise disposed
of in the course of such  business  in  this  State.  Of  the
additional  tax  imposed  by  this  amendatory  Act  of 1985,
$9,000,000 of  the  moneys  received  by  the  Department  of
Revenue  pursuant  to  this Act shall be paid each month into
the Common School Fund. On and after the  effective  date  of
this  amendatory  Act  of  1989, in addition to any other tax
imposed by this Act, a tax is imposed upon any person engaged
in business as a retailer of cigarettes  at  the  rate  of  5
mills  per  cigarette  sold  or  otherwise disposed of in the
course of such business in  this  State.  On  and  after  the
effective date of this amendatory Act of 1993, in addition to
any  other tax imposed by this Act, a tax is imposed upon any
person engaged in business as a retailer of cigarettes at the
rate of 7 mills per cigarette sold or otherwise  disposed  of
in  the  course  of such business in this State. On and after
December 15, 1997, in addition to any other  tax  imposed  by
this  Act,  a  tax  is  imposed  upon  any  person engaged in
business as a retailer of cigarettes at the rate of  7  mills
per  cigarette sold or otherwise disposed of in the course of
such business of this State. All of the  moneys  received  by
the  Department  of  Revenue  pursuant  to  this  Act and the
Cigarette Use Tax Act from the additional  taxes  imposed  by
this  amendatory  Act  of 1997, shall be paid each month into
the Common School Fund. The payment of such  taxes  shall  be
evidenced  by  a  stamp  affixed  to each original package of
cigarettes,  or  an  authorized  substitute  for  such  stamp
imprinted  on  each  original  package  of  such   cigarettes
underneath  the  sealed  transparent  outside wrapper of such
original package, as hereinafter  provided.    However,  such
taxes  are  not imposed upon any activity in such business in
interstate commerce or  otherwise,  which  activity  may  not
under  the  Constitution and statutes of the United States be
made the subject of taxation by this State.
    Beginning on the effective date of this amendatory Act of
1993, all of the moneys received by the Department of Revenue
pursuant to this Act and the Cigarette  Use  Tax  Act,  other
than  the  moneys that are dedicated to the Metropolitan Fair
and Exposition Authority Reconstruction Fund and  the  Common
School  Fund,  shall  be  distributed  each month as follows:
first, there shall be paid into the General Revenue  Fund  an
amount  which,  when added to the amount paid into the Common
School Fund for that month, equals  $33,300,000  $25,000,000;
then,  from  the moneys remaining, if any amounts required to
be paid into the General  Revenue  Fund  in  previous  months
remain  unpaid,  those amounts shall be paid into the General
Revenue Fund; then, from the moneys remaining, if any amounts
required to be paid into the Long-Term Care Provider Fund  in
previous  months  remain  unpaid, those amounts shall be paid
into the Long-Term Care Provider Fund; then, from the  moneys
remaining,  $9,545,000  shall be paid into the Long-Term Care
Provider Fund (except that not more than  $105,000,000  shall
be paid into the Long-Term Care Provider Fund in State fiscal
year  1994  from  moneys  received pursuant to this Act); and
finally the remaining moneys, if any, shall be paid into  the
Hospital   Provider  Fund.  To  the  extent  that  more  than
$25,000,000 has been paid into the General Revenue  Fund  and
Common  School  Fund per month for the period of July 1, 1993
through the effective date of this  amendatory  Act  of  1994
from  combined  receipts  of  the  Cigarette  Tax Act and the
Cigarette  Use  Tax  Act,  notwithstanding  the  distribution
provided in this Section, the Department of Revenue is hereby
directed to adjust the distribution provided in this  Section
to  increase  the next monthly payments to the Long Term Care
Provider Fund by the amount paid to the General Revenue  Fund
and Common School Fund in excess of $25,000,000 per month and
to  decrease the next monthly payments to the General Revenue
Fund and Common School Fund by that same excess amount.
    When any tax imposed herein terminates or has terminated,
distributors who have bought stamps while  such  tax  was  in
effect  and who therefore paid such tax, but who can show, to
the Department's satisfaction, that they sold the  cigarettes
to  which  they  affixed  such  stamps  after  such  tax  had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for  such absorbed tax against subsequent tax stamp purchases
from the Department by such distributor.
    The impact of the tax levied by this Act is imposed  upon
the  retailer  and  shall  be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of  the
cigarettes  sold  by  such distributor. Collection of the tax
shall be evidenced by a  stamp  or  stamps  affixed  to  each
original package of cigarettes, as hereinafter provided.
    Each  distributor shall collect the tax from the retailer
at or before the time of the sale, shall affix the stamps  as
hereinafter  required, and shall remit the tax collected from
retailers to the Department,  as  hereinafter  provided.  Any
distributor  who  fails  to  properly collect and pay the tax
imposed by  this  Act  shall  be  liable  for  the  tax.  Any
distributor  having  cigarettes  to  which  stamps  have been
affixed in his possession for sale on the effective  date  of
this  amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes.  Any  distributor  having  cigarettes  to
which  stamps  have been affixed in his or her possession for
sale at 12:01 a.m. on the effective date of  this  amendatory
Act of 1993, is required to pay the additional tax imposed by
this amendatory Act of 1993 on such stamped cigarettes.  This
payment,  less the discount provided in subsection (b), shall
be due  when  the  distributor  first  makes  a  purchase  of
cigarette  tax  stamps  after  the  effective  date  of  this
amendatory  Act of 1993, or on the first due date of a return
under this Act after the effective date  of  this  amendatory
Act  of 1993, whichever occurs first.  Any distributor having
cigarettes  to  which  stamps  have  been  affixed   in   his
possession  for  sale  on  December  15,  1997  shall  not be
required to pay the additional tax imposed by this amendatory
Act of 1997 on such stamped cigarettes.
    The amount of the Cigarette Tax imposed by this Act shall
be separately stated, apart from the price of the  goods,  by
both distributors and retailers, in all advertisements, bills
and sales invoices.
    (b)  The  distributor  shall  be  required to collect the
taxes provided under paragraph (a) hereof, and, to cover  the
costs  of such collection, shall be allowed a discount during
any year commencing July 1st and ending  the  following  June
30th  in  accordance  with  the schedule set out hereinbelow,
which discount shall be allowed at the time  of  purchase  of
the  stamps  when purchase is required by this Act, or at the
time when the tax is remitted to the Department  without  the
purchase  of  stamps  from the Department when that method of
paying the tax is required or authorized by this Act.   Prior
to December 1, 1985, a discount equal to 1 2/3% of the amount
of  the  tax  up  to  and  including  the first $700,000 paid
hereunder by such distributor to the  Department  during  any
such  year;  1  1/3%  of the next $700,000 of tax or any part
thereof, paid hereunder by such distributor to the Department
during any such year; 1% of the next $700,000 of tax, or  any
part  thereof,  paid  hereunder  by  such  distributor to the
Department during any such year, and 2/3 of 1% of the  amount
of  any  additional tax paid hereunder by such distributor to
the Department during any such year shall apply. On and after
December 1, 1985, a discount equal to 1.75% of the amount  of
the  tax payable under this Act up to and including the first
$3,000,000  paid  hereunder  by  such  distributor   to   the
Department during any such year and 1.5% of the amount of any
additional  tax  paid  hereunder  by  such distributor to the
Department during any such year shall apply.
    Two or more distributors  that  use  a  common  means  of
affixing  revenue  tax stamps or that are owned or controlled
by  the  same  interests  shall  be  treated  as   a   single
distributor for the purpose of computing the discount.
    (c)  The  taxes  herein  imposed  are  in addition to all
other occupation or privilege taxes imposed by the  State  of
Illinois,  or by any political subdivision thereof, or by any
municipal corporation.
(Source: P.A. 88-88; 88-535.)

    Section 10-10.  The Cigarette Use Tax Act is  amended  by
changing Section 2 as follows:

    (35 ILCS 135/2) (from Ch. 120, par. 453.32)
    Sec.  2.   A  tax  is imposed upon the privilege of using
cigarettes in  this  State,  at  the  rate  of  6  mills  per
cigarette so used. On and after December 1, 1985, in addition
to  any  other tax imposed by this Act, a tax is imposed upon
the privilege of using cigarettes in this State at a rate  of
4  mills  per  cigarette  so used. On and after the effective
date of this amendatory Act of 1989, in addition to any other
tax imposed by this Act, a tax is imposed upon the  privilege
of  using cigarettes in this State at the rate of 5 mills per
cigarette so used.  On and after the effective date  of  this
amendatory  Act of 1993, in addition to any other tax imposed
by this Act, a tax is imposed upon  the  privilege  of  using
cigarettes  in  this State at a rate of 7 mills per cigarette
so used.  On and after December 15, 1997, in addition to  any
other  tax  imposed  by  this  Act, a tax is imposed upon the
privilege of using cigarettes in this State at a  rate  of  7
mills  per cigarette so used.  The taxes herein imposed shall
be in addition to all other  occupation  or  privilege  taxes
imposed  by  the  State  of  Illinois  or  by  any  political
subdivision thereof or by any municipal corporation.
    When any tax imposed herein terminates or has terminated,
distributors  who  have  bought  stamps while such tax was in
effect and who therefore paid such tax, but who can show,  to
the  Department's satisfaction, that they sold the cigarettes
to  which  they  affixed  such  stamps  after  such  tax  had
terminated and did not recover the tax or its equivalent from
purchasers, shall be allowed by the Department to take credit
for such absorbed tax against subsequent tax stamp  purchases
from the Department by such distributors.
    When the word "tax" is used in this Act, it shall include
any  tax  or  tax rate imposed by this Act and shall mean the
singular of "tax" or the plural "taxes" as  the  context  may
require.
    Any  distributor  having  cigarettes to which stamps have
been affixed in his possession for sale on the effective date
of this amendatory Act of 1989 shall not be required  to  pay
the  additional tax imposed by this amendatory Act of 1989 on
such stamped cigarettes. Any distributor having cigarettes to
which stamps have been affixed in his or her  possession  for
sale  at  12:01 a.m. on the effective date of this amendatory
Act of 1993, is required to pay the additional tax imposed by
this amendatory Act of 1993 on such stamped cigarettes.  This
payment shall be due  when  the  distributor  first  makes  a
purchase  of cigarette tax stamps after the effective date of
this amendatory Act of 1993, or on the first due  date  of  a
return  under  this  Act  after  the  effective  date of this
amendatory Act of  1993,  whichever  occurs  first.   Once  a
distributor  tenders  payment  of  the  additional tax to the
Department, the distributor  may  purchase  stamps  from  the
Department.    Any  distributor  having  cigarettes  to which
stamps have been  affixed  in  his  possession  for  sale  on
December 15, 1997 shall not be required to pay the additional
tax  imposed  by  this amendatory Act of 1997 on such stamped
cigarettes.
(Source: P.A. 88-88.)

    Section 10-15.  The Telecommunications Excise Tax Act  is
amended by changing Sections 3, 4, and 6 as follows:

    (35 ILCS 630/3) (from Ch. 120, par. 2003)
    Sec.  3.   Until December 31, 1997, a tax is imposed upon
the act or privilege of originating or  receiving  intrastate
telecommunications  by  a person in this State at the rate of
5% of the gross charge for such telecommunications  purchased
at  retail from a retailer by such person.  Beginning January
1, 1998, a tax is  imposed  upon  the  act  or  privilege  of
originating   in  this  State  or  receiving  in  this  State
intrastate telecommunications by a person in  this  State  at
the   rate   of   7%   of   the   gross   charge   for   such
telecommunications  purchased  at  retail  from a retailer by
such person.  However, such tax is not imposed on the act  or
privilege  to the extent such act or privilege may not, under
the Constitution and statutes of the United States,  be  made
the subject of taxation by the State.
(Source: P.A. 84-1295.)

    (35 ILCS 630/4) (from Ch. 120, par. 2004)
    Sec.  4.   Until December 31, 1997, a tax is imposed upon
the  act  or  privilege  of  originating  in  this  State  or
receiving in this State interstate  telecommunications  by  a
person  in  this  State at the rate of 5% of the gross charge
for  such  telecommunications  purchased  at  retail  from  a
retailer by such person.  Beginning January 1, 1998, a tax is
imposed upon the act or  privilege  of  originating  in  this
State    or    receiving    in    this    State    interstate
telecommunications  by  a person in this State at the rate of
7% of the gross charge for such telecommunications  purchased
at  retail from a retailer by such person.  To prevent actual
multi-state taxation of the act or privilege that is  subject
to  taxation  under  this paragraph, any taxpayer, upon proof
that that taxpayer has paid a tax in another  state  on  such
event,  shall  be allowed a credit against the tax imposed in
this Section 4 to the  extent  of  the  amount  of  such  tax
properly due and paid in such other state.  However, such tax
is not imposed on the act or privilege to the extent such act
or  privilege may not, under the Constitution and statutes of
the United States, be made the subject  of  taxation  by  the
State.
(Source: P.A. 84-1295.)

    (35 ILCS 630/6) (from Ch. 120, par. 2006)
    Sec.  6.  Except as provided hereinafter in this Section,
on or before  the  15th  day  of  each  month  each  retailer



maintaining  a  place  of business in this State shall make a
return to the Department for the  preceding  calendar  month,
stating:
         1.  His name;
         2.  The  address of his principal place of business,
    and the address of the principal place  of  business  (if
    that is a different address) from which he engages in the
    business of transmitting telecommunications;
         3.  Total  amount  of  gross  charges  billed by him
    during  the  preceding  calendar  month   for   providing
    telecommunications during such calendar month;
         4.  Total   amount   received   by  him  during  the
    preceding calendar month on credit extended;
         5.  Deductions allowed by law;
         6.  Gross charges which were billed  by  him  during
    the  preceding calendar month and upon the basis of which
    the tax is imposed;
         7.  Amount of tax (computed upon Item 6);
         8.  Such  other  reasonable   information   as   the
    Department may require.
    Any taxpayer required to make payments under this Section
may  make  the  payments  by  electronic funds transfer.  The
Department  shall  adopt  rules  necessary  to  effectuate  a
program of electronic funds transfer.
    If the retailer's average monthly tax billings due to the
Department do not exceed $100, the Department  may  authorize
his  returns  to be filed on a quarter annual basis, with the
return for January, February and March of a given year  being
due  by April 15 of such year; with the return for April, May
and June of a given year being due by July 15 of  such  year;
with  the  return  for  July, August and September of a given
year being due by October 15  of  such  year;  and  with  the
return  of  October,  November  and  December of a given year
being due by January 15 of the following year.
    Notwithstanding  any  other  provision  of  this  Article
containing the time within which  a  retailer  may  file  his
return, in the case of any retailer who ceases to engage in a
kind  of  business  which  makes  him  responsible for filing
returns under this Article, such retailer shall file a  final
return  under  this Article with the Department not more than
one month after discontinuing such business.
    In making such return, the retailer shall  determine  the
value  of  any consideration other than money received by him
and  he  shall  include  such  value  in  his  return.   Such
determination shall be subject to review and revision by  the
Department   in  the  manner  hereinafter  provided  for  the
correction of returns.
    Each retailer whose  average  monthly  liability  to  the
Department  under this Article was $10,000 or more during the
preceding calendar  year,  excluding  the  month  of  highest
liability  and the month of lowest liability in such calendar
year, and who is not operated by a unit of local  government,
shall  make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the  month  during  which
tax  collection liability to the Department is incurred in an
amount not less  than  the  lower  of  either  22.5%  of  the
retailer's actual tax collections for the month or 25% of the
retailer's actual tax collections for the same calendar month
of  the  preceding  year.  The amount of such quarter monthly
payments shall be credited against the final liability of the
retailer's return for that month.   Any  outstanding  credit,
approved  by  the  Department,  arising  from  the retailer's
overpayment of its final  liability  for  any  month  may  be
applied  to  reduce  the  amount  of  any  subsequent quarter
monthly payment or credited against the  final  liability  of
the  retailer's  return  for  any  subsequent  month.  If any
quarter monthly payment is not paid at the  time  or  in  the
amount required by this Section, the retailer shall be liable
for  penalty  and  interest  on  the  difference  between the
minimum amount due as  a  payment  and  the  amount  of  such
payment  actually  and  timely  paid,  except  insofar as the
retailer has previously made payments for that month  to  the
Department in excess of the minimum payments previously due.
    If  the  Director finds that the information required for
the  making  of  an  accurate  return  cannot  reasonably  be
compiled by a retailer within 15 days after the close of  the
calendar month for which a return is to be made, he may grant
an  extension  of  time  for  the filing of such return for a
period of not to exceed 31 calendar days.   The  granting  of
such  an extension may be conditioned upon the deposit by the
retailer with the  Department  of  an  amount  of  money  not
exceeding the amount estimated by the Director to be due with
the  return  so  extended.   All such deposits, including any
heretofore  made  with  the  Department,  shall  be  credited
against the retailer's liabilities under  this  Article.   If
any  such deposit exceeds the retailer's present and probable
future liabilities under this Article, the  Department  shall
issue  to  the  retailer  a  credit  memorandum, which may be
assigned by the retailer to a  similar  retailer  under  this
Article,  in accordance with reasonable rules and regulations
to be prescribed by the Department.
    The retailer making the return herein provided for shall,
at the time of making such return, pay to the Department  the
amount of tax herein imposed. On and after the effective date
of this Article of 1985, $1,000,000 of the moneys received by
the  Department  of Revenue pursuant to this Article shall be
paid each month into the Common School Fund and the remainder
into the General Revenue Fund. On and after February 1, 1998,
however, of the moneys received by the Department of  Revenue
pursuant  to  the additional taxes imposed by this amendatory
Act of 1997 one-half  shall  be  deposited  into  the  School
Infrastructure  Fund and one-half shall be deposited into the
Common School Fund.
(Source: P.A. 90-16, eff. 6-16-97.)

    Section 10-20.  The Uniform Penalty and Interest  Act  is
amended by changing Section 3-3 as follows:

    (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
    (Text of Section before amendment by P.A. 90-491)
    Sec. 3-3.  Penalty for failure to file or pay.
    (a)  This  subsection (a) is applicable before January 1,
1996.  A penalty of 5% of the tax required to be shown due on
a return shall be imposed for failure to file the tax  return
on  or  before  the due date prescribed for filing determined
with regard for any extension of time for filing (penalty for
late filing or nonfiling).  If any  unprocessable  return  is
corrected  and  filed  within  21  days  after  notice by the
Department, the late filing or nonfiling  penalty  shall  not
apply.   If a penalty for late filing or nonfiling is imposed
in addition to a penalty for late payment, the total  penalty
due  shall  be  the  sum  of  the late filing penalty and the
applicable late payment penalty. Beginning on  the  effective
date  of this amendatory Act of 1995, in the case of any type
of tax return required  to  be  filed  more  frequently  than
annually,  when  the  failure  to  file  the tax return on or
before  the  date  prescribed  for  filing   (including   any
extensions) is shown to be nonfraudulent and has not occurred
in  the  2 years immediately preceding the failure to file on
the prescribed due  date,  the  penalty  imposed  by  section
3-3(a) shall be abated.
    (a-5)  This  subsection  (a-5) is applicable on and after
January 1, 1996. A penalty equal to 2% of the tax required to
be shown due on a return, up to a  maximum  amount  of  $250,
determined without regard to any part of the tax that is paid
on  time  or by any credit that was properly allowable on the
date the return was required to be filed,  shall  be  imposed
for  failure to file the tax return on or before the due date
prescribed  for  filing  determined  with  regard   for   any
extension  of  time for filing. However, if any return is not
filed within 30 days after notice of nonfiling mailed by  the
Department   to  the  last  known  address  of  the  taxpayer
contained in Department records, an additional penalty amount
shall be imposed equal to the greater of $250 or  2%  of  the
tax  shown  on  the  return.  However, the additional penalty
amount may not exceed $5,000 and is determined without regard
to any part of the tax that is paid on time or by any  credit
that  was  properly  allowable  on  the  date  the return was
required to be filed (penalty for late filing or  nonfiling).
If  any unprocessable return is corrected and filed within 30
days after notice by  the  Department,  the  late  filing  or
nonfiling  penalty  shall  not  apply.  If a penalty for late
filing or nonfiling is imposed in addition to a  penalty  for
late  payment,  the total penalty due shall be the sum of the
late filing penalty and the applicable late payment  penalty.
In  the  case  of any type of tax return required to be filed
more frequently than annually, when the failure to  file  the
tax  return  on  or  before  the  date  prescribed for filing
(including any extensions) is shown to be  nonfraudulent  and
has  not  occurred  in  the 2 years immediately preceding the
failure to file on  the  prescribed  due  date,  the  penalty
imposed by section 3-3(a) shall be abated.
    (b)  This  subsection  is  applicable  before  January 1,
1998. A penalty of 15% of the tax shown on the return or  the
tax  required  to be shown due on the return shall be imposed
for failure to pay:
         (1)  the tax shown due on the return  on  or  before
    the  due  date  prescribed  for  payment  of that tax, an
    amount of underpayment of estimated  tax,  or  an  amount
    that  is  reported  in  an  amended  return other than an
    amended return timely filed as required by subsection (b)
    of Section 506 of the Illinois Income  Tax  Act  (penalty
    for late payment or nonpayment of admitted liability); or
         (2)  the full amount of any tax required to be shown
    due  on a return and which is not shown (penalty for late
    payment or nonpayment of additional liability), within 30
    days after a  notice  of  arithmetic  error,  notice  and
    demand,   or   a   final  assessment  is  issued  by  the
    Department. In the case of  a  final  assessment  arising
    following  a protest and hearing, the 30-day period shall
    not begin until all proceedings in court  for  review  of
    the  final  assessment  have terminated or the period for
    obtaining a review has expired without proceedings for  a
    review  having  been instituted.  In the case of a notice
    of tax liability that becomes a final assessment  without
    a  protest  and  hearing,  the  penalty  provided in this
    paragraph (2) shall be imposed at the expiration  of  the
    period provided for the filing of a protest.
    (b-5)  This subsection is applicable on and after January
1,  1998.  A penalty of 20% of the tax shown on the return or
the tax required to be shown  due  on  the  return  shall  be
imposed for failure to pay:
         (1)  the  tax  shown  due on the return on or before
    the due date prescribed  for  payment  of  that  tax,  an
    amount  of  underpayment  of  estimated tax, or an amount
    that is reported in  an  amended  return  other  than  an
    amended return timely filed as required by subsection (b)
    of  Section  506  of the Illinois Income Tax Act (penalty
    for late payment or nonpayment of admitted liability); or
         (2)  the full amount of any tax required to be shown
    due on a return and which is not shown (penalty for  late
    payment or nonpayment of additional liability), within 30
    days  after  a  notice  of  arithmetic  error, notice and
    demand,  or  a  final  assessment  is   issued   by   the
    Department.  In  the  case  of a final assessment arising
    following a protest and hearing, the 30-day period  shall
    not  begin  until  all proceedings in court for review of
    the final assessment have terminated or  the  period  for
    obtaining  a review has expired without proceedings for a
    review having been instituted.  In the case of  a  notice
    of  tax liability that becomes a final assessment without
    a protest and  hearing,  the  penalty  provided  in  this
    paragraph  (2)  shall be imposed at the expiration of the
    period provided for the filing of a protest.
    (c)  For purposes of  the  late  payment  penalties,  the
basis of the penalty shall be the tax shown or required to be
shown  on  a  return, whichever is applicable, reduced by any
part of the tax which is paid on time and by any credit which
was properly allowable on the date the return was required to
be filed.
    (d)  A penalty shall be applied to the tax required to be
shown even if that amount is less than the tax shown  on  the
return.
    (e)  If both a subsection (b)(1) penalty and a subsection
(b)(2)  penalty  are  assessed  against  the same return, the
subsection (b)(2) penalty shall be assessed against only  the
additional tax found to be due.
    (f)  If  the  taxpayer has failed to file the return, the
Department shall determine the correct tax according  to  its
best  judgment  and  information, which amount shall be prima
facie evidence of the correctness of the tax due.
    (g)  The time within which to file a  return  or  pay  an
amount  of  tax  due without imposition of a penalty does not
extend the time within which to file a protest to a notice of
tax liability or a notice of deficiency.
(Source: P.A. 88-480;  89-379,  eff.  8-18-95;  89-436,  eff.
1-1-96.)

    (Text of Section after amendment by P.A. 90-491)
    Sec. 3-3.  Penalty for failure to file or pay.
    (a)  This  subsection (a) is applicable before January 1,
1996.  A penalty of 5% of the tax required to be shown due on
a return shall be imposed for failure to file the tax  return
on  or  before  the due date prescribed for filing determined
with regard for any extension of time for filing (penalty for
late filing or nonfiling).  If any  unprocessable  return  is
corrected  and  filed  within  21  days  after  notice by the
Department, the late filing or nonfiling  penalty  shall  not
apply.   If a penalty for late filing or nonfiling is imposed
in addition to a penalty for late payment, the total  penalty
due  shall  be  the  sum  of  the late filing penalty and the
applicable late payment penalty. Beginning on  the  effective
date  of this amendatory Act of 1995, in the case of any type
of tax return required  to  be  filed  more  frequently  than
annually,  when  the  failure  to  file  the tax return on or
before  the  date  prescribed  for  filing   (including   any
extensions) is shown to be nonfraudulent and has not occurred
in  the  2 years immediately preceding the failure to file on
the prescribed due  date,  the  penalty  imposed  by  section
3-3(a) shall be abated.
    (a-5)  This  subsection  (a-5) is applicable on and after
January 1, 1996. A penalty equal to 2% of the tax required to
be shown due on a return, up to a  maximum  amount  of  $250,
determined without regard to any part of the tax that is paid
on  time  or by any credit that was properly allowable on the
date the return was required to be filed,  shall  be  imposed
for  failure to file the tax return on or before the due date
prescribed  for  filing  determined  with  regard   for   any
extension  of  time for filing. However, if any return is not
filed within 30 days after notice of nonfiling mailed by  the
Department   to  the  last  known  address  of  the  taxpayer
contained in Department records, an additional penalty amount
shall be imposed equal to the greater of $250 or  2%  of  the
tax  shown  on  the  return.  However, the additional penalty
amount may not exceed $5,000 and is determined without regard
to any part of the tax that is paid on time or by any  credit
that  was  properly  allowable  on  the  date  the return was
required to be filed (penalty for late filing or  nonfiling).
If  any unprocessable return is corrected and filed within 30
days after notice by  the  Department,  the  late  filing  or
nonfiling  penalty  shall  not  apply.  If a penalty for late
filing or nonfiling is imposed in addition to a  penalty  for
late  payment,  the total penalty due shall be the sum of the
late filing penalty and the applicable late payment  penalty.
In  the  case  of any type of tax return required to be filed
more frequently than annually, when the failure to  file  the
tax  return  on  or  before  the  date  prescribed for filing
(including any extensions) is shown to be  nonfraudulent  and
has  not  occurred  in  the 2 years immediately preceding the
failure to file on  the  prescribed  due  date,  the  penalty
imposed by section 3-3(a) shall be abated.
    (b)  This  subsection  is  applicable  before  January 1,
1998. A penalty of 15% of the tax shown on the return or  the
tax  required  to be shown due on the return shall be imposed
for failure to pay:
         (1)  the tax shown due on the return  on  or  before
    the  due  date  prescribed  for  payment  of that tax, an
    amount of underpayment of estimated  tax,  or  an  amount
    that  is  reported  in  an  amended  return other than an
    amended return timely filed as required by subsection (b)
    of Section 506 of the Illinois Income  Tax  Act  (penalty
    for late payment or nonpayment of admitted liability); or
         (2)  the full amount of any tax required to be shown
    due  on a return and which is not shown (penalty for late
    payment or nonpayment of additional liability), within 30
    days after a  notice  of  arithmetic  error,  notice  and
    demand,   or   a   final  assessment  is  issued  by  the
    Department. In the case of  a  final  assessment  arising
    following  a protest and hearing, the 30-day period shall
    not begin until all proceedings in court  for  review  of
    the  final  assessment  have terminated or the period for
    obtaining a review has expired without proceedings for  a
    review  having  been instituted.  In the case of a notice
    of tax liability that becomes a final assessment  without
    a  protest  and  hearing,  the  penalty  provided in this
    paragraph (2) shall be imposed at the expiration  of  the
    period provided for the filing of a protest.
    (b-5)  This subsection is applicable on and after January
1,  1998.  A penalty of 20% of the tax shown on the return or
the tax required to be shown  due  on  the  return  shall  be
imposed for failure to pay:
         (1)  the  tax  shown  due on the return on or before
    the due date prescribed  for  payment  of  that  tax,  an
    amount  of  underpayment  of  estimated tax, or an amount
    that is reported in  an  amended  return  other  than  an
    amended return timely filed as required by subsection (b)
    of  Section  506  of the Illinois Income Tax Act (penalty
    for late payment or nonpayment of admitted liability); or
         (2)  the full amount of any tax required to be shown
    due on a return and which is not shown (penalty for  late
    payment or nonpayment of additional liability), within 30
    days  after  a  notice  of  arithmetic  error, notice and
    demand,  or  a  final  assessment  is   issued   by   the
    Department.  In  the  case  of a final assessment arising
    following a protest and hearing, the 30-day period  shall
    not  begin  until  all proceedings in court for review of
    the final assessment have terminated or  the  period  for
    obtaining  a review has expired without proceedings for a
    review having been instituted.  In the case of  a  notice
    of  tax liability that becomes a final assessment without
    a protest and  hearing,  the  penalty  provided  in  this
    paragraph  (2)  shall be imposed at the expiration of the
    period provided for the filing of a protest.
    (c)  For purposes of  the  late  payment  penalties,  the
basis of the penalty shall be the tax shown or required to be
shown  on  a  return, whichever is applicable, reduced by any
part of the tax which is paid on time and by any credit which
was properly allowable on the date the return was required to
be filed.
    (d)  A penalty shall be applied to the tax required to be
shown even if that amount is less than the tax shown  on  the
return.
    (e)  If both a subsection (b)(1) penalty and a subsection
(b)(2)  penalty  are  assessed  against  the same return, the
subsection (b)(2) penalty shall be assessed against only  the
additional tax found to be due.
    (f)  If  the  taxpayer has failed to file the return, the
Department shall determine the correct tax according  to  its
best  judgment  and  information, which amount shall be prima
facie evidence of the correctness of the tax due.
    (g)  The time within which to file a  return  or  pay  an
amount  of  tax  due without imposition of a penalty does not
extend the time within which to file a protest to a notice of
tax liability or a notice of deficiency.
    (h)  No return shall be determined  to  be  unprocessable
because  of  the omission of any information requested on the
return pursuant to Section 39b53 of the Civil  Administrative
Code of Illinois.
(Source: P.A.  89-379,  eff.  8-18-95;  89-436,  eff. 1-1-96;
90-491, eff. 1-1-98.)

    Section 10-25.  The Riverboat Gambling Act is amended  by
changing Section 13 as follows:

    (230 ILCS 10/13) (from Ch. 120, par. 2413)
    Sec. 13.  Wagering tax; rate; distribution.
    (a)  Until  January  1,  1998,  a  tax  is imposed on the
adjusted  gross  receipts  received   from   gambling   games
authorized under this Act at the rate of 20%.
    Beginning  January 1, 1998, a privilege tax is imposed on
persons engaged  in  the  business  of  conducting  riverboat
gambling  operations,  based  on  the adjusted gross receipts
received by a licensed owner from gambling  games  authorized
under this Act at the following rates:
         15%  of  annual  adjusted  gross  receipts up to and
    including $25,000,000;
         20% of annual adjusted gross receipts in  excess  of
    $25,000,000 but not exceeding $50,000,000;
         25%  of  annual adjusted gross receipts in excess of
    $50,000,000 but not exceeding $75,000,000;
         30% of annual adjusted gross receipts in  excess  of
    $75,000,000 but not exceeding $100,000,000;
         35%  of  annual adjusted gross receipts in excess of
    $100,000,000.
    The taxes imposed by this Section shall be  paid  by  the
licensed  owner to the Board not later than 3:00 o'clock p.m.
of the day after the close of the day when  the  wagers  were
made.
    (b)  Until  January 1, 1998, Twenty-five percent (25%) of
the tax revenue deposited in the State Gaming Fund under this
Section shall  be  paid,  subject  to  appropriation  by  the
General  Assembly,  to  the unit of local government which is
designated as the home  dock  of  the  riverboat.   Beginning
January  1, 1998, from the tax revenue deposited in the State
Gaming Fund under this Section, an  amount  equal  to  5%  of
adjusted  gross  receipts  generated  by a riverboat shall be
paid  monthly,  subject  to  appropriation  by  the   General
Assembly,  to the unit of local government that is designated
as the home dock of the riverboat.
    (c)  Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the  Department  of
Revenue   and   the   Department  of  State  Police  for  the
administration and enforcement of this Act.
    (d)  From time to time,  the  Board  shall  transfer  the
remainder  of  the  funds  generated  by  this  Act  into the
Education Assistance Fund, created by Public Act 86-0018,  of
the State of Illinois.
    (e)  Nothing in this Act shall prohibit the unit of local
government  designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of  the
tax revenue.
    (f)  To   the   extent   practicable,   the  Board  shall
administer and collect the wagering  taxes  imposed  by  this
Section  in  a  manner  consistent  with  the  provisions  of
Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c,  8,  9,  and  10 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act.
(Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.)

                         ARTICLE 15

    Section 15-5.  Short title.  This Article may be cited as
the General State Aid Continuing Appropriation Law.

    Section  15-10.   Annual  budget;  recommendation.    The
Governor shall include a Common School Fund recommendation to
the  State Board of Education in the fiscal year 1999 through
2001 annual Budgets sufficient to fund the General State  Aid
Formula  set  forth  in  Subsection E (Computation of General
State Aid) and Subsection H (Supplemental General State  Aid)
of Section 18-8.05 of the School Code.
    Section  15-15.  General State Aid Formula; Funding.  The
General Assembly  shall  annually  make  Common  School  Fund
appropriations  to  the  State  Board  of Education in fiscal
years 1999 through 2001 sufficient to fund the General  State
Aid Formula set forth in Subsection E (Computation of General
State Aid)  and Subsection H (Supplemental General State Aid)
of Section 18-8.05 of the School Code.

    Section 15-20.  Continuing appropriation.  If the General
Assembly  fails  to make Common School Fund appropriations to
the State Board of Education in  fiscal  years  1999  through
2001  sufficient  to  fund  the General State Aid Formula set
forth in Subsection E (Computation of General State Aid)  and
Subsection  H  (Supplemental  General  State  Aid) of Section
18-8.05 of the School Code, this Article shall constitute  an
irrevocable  and  continuing  appropriation  from  the Common
School Fund of all amounts necessary for that purpose.

    Section 15-25.  Repeal.  This Article  is  repealed  June
30, 2001.

                         ARTICLE 925

    Section 925-5.  No acceleration or delay.  Where this Act
makes changes in a statute that is represented in this Act by
text  that  is not yet or no longer in effect (for example, a
Section represented by multiple versions), the  use  of  that
text  does  not  accelerate or delay the taking effect of (i)
the changes made by this Act or (ii) provisions derived  from
any other Public Act.

                         ARTICLE 950

    Section 950-5.  Severability and inseverability.
    (a)  If any provision of this Act, other than Article 10,
or the application of any provision of this Act, other than a
provision  of  Article  10,  to any person or circumstance is
held invalid, the invalidity of that provision or application
does not affect other provisions or applications of this  Act
that  can  be  given  effect without the invalid provision or
application.
    (b)  Each provision of Article 10 is  mutually  dependent
upon  and  inseverable  from  each  other  provision  of that
Article.  If any provision of Article 10 or  its  application
to  any  person  or circumstance is held invalid, then all of
Article 10 is invalid.
    (c)  If Article 10 or any provision of  that  Article  or
the  application of that Article or provision of that Article
to any other person or  circumstance  is  held  invalid,  the
invalidity  of  that Article or provision does not affect any
other Article of this Act or any provision of any such  other
Article   that  can  be  given  effect  without  the  invalid
provision or application.

                         ARTICLE 990

    Section 990-5.  Effective date.  This  Act  takes  effect
upon  becoming law, except that (i) all provisions of Article
5, other than the  changes  made  by  Section  5-910  to  the
Illinois  Pension Code and other than the changes to Sections
18-7 and 18-8 of and the addition of Section 18-8.05  to  the
School  Code,  take  effect January 1, 1998, (ii) the changes
made by Section 5-910 to the Illinois Pension  Code  and  the
changes  to  Sections  18-7  and 18-8 of the School Code take
effect upon becoming a law, and (iii) the addition of Section
18-8.05 to the School Code takes effect July 1, 1998.

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