093_HB0208

 
                                     LRB093 04198 SJM 04242 b

 1        AN ACT concerning schools.

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

 4                              ARTICLE 5

 5        Section  5-5.   The  School  Code  is amended by changing
 6    Section 18-8.05 as follows:

 7        (105 ILCS 5/18-8.05)
 8        Sec. 18-8.05.  Basis for apportionment of  general  State
 9    financial  aid  and  supplemental  general  State  aid to the
10    common schools for the 1998-1999 and subsequent school years.

11    (A)  General Provisions.
12        (1)  The  provisions  of  this  Section  apply   to   the
13    1998-1999 and subsequent school years.  The system of general
14    State  financial aid provided for in this Section is designed
15    to assure that, through a combination of State financial  aid
16    and  required local resources, the financial support provided
17    each pupil in Average Daily Attendance equals  or  exceeds  a
18    prescribed per pupil Foundation Level.  This formula approach
19    imputes  a  level  of per pupil Available Local Resources and
20    provides for the basis to calculate  a  per  pupil  level  of
21    general  State  financial  aid  that, when added to Available
22    Local Resources, equals or exceeds the Foundation Level.  The
23    amount of per pupil general State financial  aid  for  school
24    districts,   in   general,  varies  in  inverse  relation  to
25    Available Local Resources.  Per pupil amounts are based  upon
26    each  school district's Average Daily Attendance as that term
27    is defined in this Section.
28        (2)  In addition to general State financial  aid,  school
29    districts  with  specified levels or concentrations of pupils
30    from  low  income  households   are   eligible   to   receive
 
                            -2-      LRB093 04198 SJM 04242 b
 1    supplemental  general  State financial aid grants as provided
 2    pursuant to subsection (H). The supplemental State aid grants
 3    provided for school districts under subsection (H)  shall  be
 4    appropriated  for distribution to school districts as part of
 5    the same line item in which the general State  financial  aid
 6    of school districts is appropriated under this Section.
 7        (3)  To  receive financial assistance under this Section,
 8    school districts are required to file claims with  the  State
 9    Board of Education, subject to the following requirements:
10             (a)  Any  school  district which fails for any given
11        school year to maintain school as required by law, or  to
12        maintain  a recognized school is not eligible to file for
13        such school year any claim upon the Common  School  Fund.
14        In  case  of  nonrecognition  of  one  or more attendance
15        centers  in  a  school   district   otherwise   operating
16        recognized  schools,  the  claim of the district shall be
17        reduced  in  the  proportion  which  the  Average   Daily
18        Attendance  in  the  attendance center or centers bear to
19        the Average Daily Attendance in the school  district.   A
20        "recognized  school"  means any public school which meets
21        the standards as established for recognition by the State
22        Board of Education.   A  school  district  or  attendance
23        center  not  having  recognition  status  at the end of a
24        school term is entitled to receive State aid payments due
25        upon  a  legal  claim  which  was  filed  while  it   was
26        recognized.
27             (b)  School district claims filed under this Section
28        are subject to Sections 18-9, 18-10, and 18-12, except as
29        otherwise provided in this Section.
30             (c)  If  a  school  district  operates  a  full year
31        school under Section 10-19.1, the general  State  aid  to
32        the  school  district  shall  be  determined by the State
33        Board of Education in accordance  with  this  Section  as
34        near as may be applicable.
 
                            -3-      LRB093 04198 SJM 04242 b
 1             (d)  (Blank).
 2        (4)  Except  as  provided in subsections (H) and (L), the
 3    board of any district receiving any of  the  grants  provided
 4    for  in  this  Section  may  apply those funds to any fund so
 5    received  for  which  that  board  is  authorized   to   make
 6    expenditures by law.
 7        School  districts  are  not  required  to exert a minimum
 8    Operating Tax Rate in order to qualify for  assistance  under
 9    this Section.
10        (5)  As  used  in  this Section the following terms, when
11    capitalized, shall have the meaning ascribed herein:
12             (a)  "Average Daily Attendance":  A count  of  pupil
13        attendance   in  school,  averaged  as  provided  for  in
14        subsection  (C)  and  utilized  in  deriving  per   pupil
15        financial support levels.
16             (b)  "Available  Local Resources":  A computation of
17        local financial  support,  calculated  on  the  basis  of
18        Average Daily Attendance and derived as provided pursuant
19        to subsection (D).
20             (c)  "Corporate    Personal   Property   Replacement
21        Taxes":  Funds paid to local school districts pursuant to
22        "An Act in  relation  to  the  abolition  of  ad  valorem
23        personal  property  tax  and  the replacement of revenues
24        lost thereby, and amending and repealing certain Acts and
25        parts of Acts in connection therewith", certified  August
26        14, 1979, as amended (Public Act 81-1st S.S.-1).
27             (d)  "Foundation  Level":  A prescribed level of per
28        pupil financial support as  provided  for  in  subsection
29        (B).
30             (e)  "Operating  Tax  Rate":   All  school  district
31        property taxes extended for all purposes, except Bond and
32        Interest,  Summer  School, Rent, Capital Improvement, and
33        Vocational Education Building purposes.

34    (B)  Foundation Level.
 
                            -4-      LRB093 04198 SJM 04242 b
 1        (1)  The Foundation Level is a figure established by  the
 2    State  representing  the minimum level of per pupil financial
 3    support that should be available to  provide  for  the  basic
 4    education  of each pupil in Average Daily Attendance.  As set
 5    forth in this Section, each school  district  is  assumed  to
 6    exert   a  sufficient  local  taxing  effort  such  that,  in
 7    combination with the aggregate of general State financial aid
 8    provided the  district,  an  aggregate  of  State  and  local
 9    resources  are available to meet the basic education needs of
10    pupils in the district.
11        (2)  For the 1998-1999 school year, the Foundation  Level
12    of  support  is  $4,225.   For the 1999-2000 school year, the
13    Foundation Level of support is  $4,325.   For  the  2000-2001
14    school  year, the Foundation Level of support is $4,425.  For
15    the 2001-2002 and  2002-2003  school  years,  the  Foundation
16    Level of support is $4,560.
17        (3)  For  the  2003-2004  2001-2002  school year and each
18    school year thereafter, the Foundation Level  of  support  is
19    $5,665 $4,560 or such greater amount as may be established by
20    law by the General Assembly.

21    (C)  Average Daily Attendance.
22        (1)  For   purposes  of  calculating  general  State  aid
23    pursuant to  subsection  (E),  an  Average  Daily  Attendance
24    figure  shall  be  utilized.   The  Average  Daily Attendance
25    figure for formula calculation purposes shall be the  monthly
26    average  of the actual number of pupils in attendance of each
27    school district, as further averaged for the best 3 months of
28    pupil attendance for each school district.  In compiling  the
29    figures  for  the  number  of  pupils  in  attendance, school
30    districts  and  the  State  Board  of  Education  shall,  for
31    purposes of general State  aid  funding,  conform  attendance
32    figures to the requirements of subsection (F).
33        (2)  The  Average  Daily  Attendance  figures utilized in
34    subsection (E) shall be the requisite attendance data for the
 
                            -5-      LRB093 04198 SJM 04242 b
 1    school year immediately preceding the school year  for  which
 2    general  State  aid is being calculated or the average of the
 3    attendance data for the 3 preceding school  years,  whichever
 4    is greater.  The Average Daily Attendance figures utilized in
 5    subsection (H) shall be the requisite attendance data for the
 6    school  year  immediately preceding the school year for which
 7    general State aid is being calculated.

 8    (D)  Available Local Resources.
 9        (1)  For  purposes  of  calculating  general  State   aid
10    pursuant  to  subsection  (E),  a representation of Available
11    Local Resources per  pupil,  as  that  term  is  defined  and
12    determined  in this subsection, shall be utilized.  Available
13    Local Resources per pupil shall include a  calculated  dollar
14    amount representing local school district revenues from local
15    property   taxes   and   from   Corporate  Personal  Property
16    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
17    Average Daily Attendance.
18        (2)  In  determining  a  school  district's  revenue from
19    local property taxes, the  State  Board  of  Education  shall
20    utilize  the  equalized  assessed  valuation  of  all taxable
21    property of each school district as of September  30  of  the
22    previous  year.   The  equalized  assessed valuation utilized
23    shall be obtained and determined as  provided  in  subsection
24    (G).
25        (3)  For school districts maintaining grades kindergarten
26    through  12,  local  property tax revenues per pupil shall be
27    calculated  as  the  product  of  the  applicable   equalized
28    assessed  valuation for the district multiplied by 3.00%, and
29    divided by the district's Average  Daily  Attendance  figure.
30    For  school districts maintaining grades kindergarten through
31    8, local property tax revenues per pupil shall be  calculated
32    as the product of the applicable equalized assessed valuation
33    for  the  district  multiplied  by  2.30%, and divided by the
34    district's  Average  Daily  Attendance  figure.   For  school
 
                            -6-      LRB093 04198 SJM 04242 b
 1    districts maintaining grades 9 through 12, local property tax
 2    revenues per pupil shall be the applicable equalized assessed
 3    valuation of the district multiplied by 1.05%, and divided by
 4    the district's Average Daily Attendance figure.
 5        (4)  The Corporate Personal  Property  Replacement  Taxes
 6    paid to each school district during the calendar year 2 years
 7    before  the  calendar  year  in  which  a school year begins,
 8    divided by the  Average  Daily  Attendance  figure  for  that
 9    district,  shall  be added to the local property tax revenues
10    per pupil as derived by the application  of  the  immediately
11    preceding  paragraph (3).  The sum of these per pupil figures
12    for each school district  shall  constitute  Available  Local
13    Resources  as  that term is utilized in subsection (E) in the
14    calculation of general State aid.

15    (E)  Computation of General State Aid.
16        (1)  For each school year, the amount  of  general  State
17    aid  allotted  to  a school district shall be computed by the
18    State Board of Education as provided in this subsection.
19        (2)  For any school district for  which  Available  Local
20    Resources  per  pupil  is less than the product of 0.93 times
21    the Foundation Level, general State  aid  for  that  district
22    shall  be  calculated  as  an  amount equal to the Foundation
23    Level minus Available  Local  Resources,  multiplied  by  the
24    Average Daily Attendance of the school district.
25        (3)  For  any  school  district for which Available Local
26    Resources per pupil is equal to or greater than  the  product
27    of  0.93 times the Foundation Level and less than the product
28    of 1.75 times the Foundation Level, the general State aid per
29    pupil shall be a decimal proportion of the  Foundation  Level
30    derived   using   a  linear  algorithm.   Under  this  linear
31    algorithm, the calculated general State aid per  pupil  shall
32    decline   in  direct  linear  fashion  from  0.07  times  the
33    Foundation Level for a school district with  Available  Local
34    Resources  equal  to the product of 0.93 times the Foundation
 
                            -7-      LRB093 04198 SJM 04242 b
 1    Level, to 0.05  times  the  Foundation  Level  for  a  school
 2    district  with Available Local Resources equal to the product
 3    of 1.75  times  the  Foundation  Level.   The  allocation  of
 4    general  State  aid  for  school  districts  subject  to this
 5    paragraph 3 shall be the calculated  general  State  aid  per
 6    pupil  figure  multiplied  by the Average Daily Attendance of
 7    the school district.
 8        (4)  For any school district for  which  Available  Local
 9    Resources  per  pupil  equals  or exceeds the product of 1.75
10    times the Foundation Level, the general  State  aid  for  the
11    school  district  shall  be calculated as the product of $218
12    multiplied by the Average  Daily  Attendance  of  the  school
13    district.
14        (5)  The  amount  of  general  State  aid  allocated to a
15    school district for the 1999-2000  school  year  meeting  the
16    requirements  set  forth  in  paragraph (4) of subsection (G)
17    shall be increased by an amount equal to  the  general  State
18    aid  that  would  have  been received by the district for the
19    1998-1999 school year by utilizing the  Extension  Limitation
20    Equalized  Assessed  Valuation as calculated in paragraph (4)
21    of subsection (G) less the general State aid allotted for the
22    1998-1999 school year.  This amount shall  be  deemed  a  one
23    time  increase, and shall not affect any future general State
24    aid allocations.

25    (F)  Compilation of Average Daily Attendance.
26        (1)  Each school district shall, by July 1 of each  year,
27    submit  to  the State Board of Education, on forms prescribed
28    by the State Board of Education, attendance figures  for  the
29    school  year  that began in the preceding calendar year.  The
30    attendance information  so  transmitted  shall  identify  the
31    average daily attendance figures for each month of the school
32    year.   Beginning  with  the general State aid claim form for
33    the 2002-2003 school year, districts shall calculate  Average
34    Daily  Attendance  as  provided in subdivisions (a), (b), and
 
                            -8-      LRB093 04198 SJM 04242 b
 1    (c) of this paragraph (1).
 2             (a)  In  districts  that  do  not  hold   year-round
 3        classes,  days  of attendance in August shall be added to
 4        the month of September and any days of attendance in June
 5        shall be added to the month of May.
 6             (b)  In  districts  in  which  all  buildings   hold
 7        year-round classes, days of attendance in July and August
 8        shall  be added to the month of September and any days of
 9        attendance in June shall be added to the month of May.
10             (c)  In districts in which some buildings,  but  not
11        all,  hold  year-round  classes,  for  the non-year-round
12        buildings, days of attendance in August shall be added to
13        the month of September and any days of attendance in June
14        shall be added to the month of  May.  The  average  daily
15        attendance for the year-round buildings shall be computed
16        as  provided in subdivision (b) of this paragraph (1). To
17        calculate the Average Daily Attendance for the  district,
18        the average daily attendance for the year-round buildings
19        shall  be  multiplied  by  the  days  in  session for the
20        non-year-round buildings for each month and added to  the
21        monthly attendance of the non-year-round buildings.
22        Except  as  otherwise  provided  in this Section, days of
23    attendance by pupils shall be counted only  for  sessions  of
24    not  less  than  5  clock  hours of school work per day under
25    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
26    personnel   or   volunteer   personnel   when   engaging   in
27    non-teaching   duties  and  supervising  in  those  instances
28    specified in subsection (a) of Section 10-22.34 and paragraph
29    10 of Section 34-18, with pupils of legal school age  and  in
30    kindergarten and grades 1 through 12.
31        Days  of attendance by tuition pupils shall be accredited
32    only to the districts that pay the tuition  to  a  recognized
33    school.
34        (2)  Days  of  attendance  by pupils of less than 5 clock
 
                            -9-      LRB093 04198 SJM 04242 b
 1    hours of school shall be subject to the following  provisions
 2    in the compilation of Average Daily Attendance.
 3             (a)  Pupils  regularly  enrolled  in a public school
 4        for only a part of the school day may be counted  on  the
 5        basis  of  1/6 day for every class hour of instruction of
 6        40 minutes or more attended pursuant to such  enrollment,
 7        unless  a pupil is enrolled in a block-schedule format of
 8        80 minutes or more of  instruction,  in  which  case  the
 9        pupil  may  be  counted on the basis of the proportion of
10        minutes of school work completed each day to the  minimum
11        number of minutes that school work is required to be held
12        that day.
13             (b)  Days  of  attendance  may  be less than 5 clock
14        hours on the opening and closing of the school term,  and
15        upon  the first day of pupil attendance, if preceded by a
16        day  or  days  utilized  as  an  institute  or  teachers'
17        workshop.
18             (c)  A session of 4  or  more  clock  hours  may  be
19        counted  as a day of attendance upon certification by the
20        regional  superintendent,  and  approved  by  the   State
21        Superintendent  of  Education  to  the  extent  that  the
22        district has been forced to use daily multiple sessions.
23             (d)  A  session  of  3  or  more  clock hours may be
24        counted as a day of attendance (1) when the remainder  of
25        the school day or at least 2 hours in the evening of that
26        day  is  utilized  for an in-service training program for
27        teachers, up to a maximum of 5 days per  school  year  of
28        which  a maximum of 4 days of such 5 days may be used for
29        parent-teacher conferences, provided a district  conducts
30        an  in-service  training  program  for teachers which has
31        been approved by the State Superintendent  of  Education;
32        or,  in  lieu of 4 such days, 2 full days may be used, in
33        which event each such day may be  counted  as  a  day  of
34        attendance;  and  (2)  when  days  in  addition  to those
 
                            -10-     LRB093 04198 SJM 04242 b
 1        provided in item (1) are scheduled by a  school  pursuant
 2        to  its  school improvement plan adopted under Article 34
 3        or its revised or amended school improvement plan adopted
 4        under Article 2, provided that (i) such sessions of 3  or
 5        more  clock  hours  are  scheduled  to  occur  at regular
 6        intervals, (ii) the remainder of the school days in which
 7        such sessions occur are utilized for in-service  training
 8        programs   or  other  staff  development  activities  for
 9        teachers, and (iii) a sufficient  number  of  minutes  of
10        school  work under the direct supervision of teachers are
11        added to the school days between such regularly scheduled
12        sessions to  accumulate  not  less  than  the  number  of
13        minutes  by  which such sessions of 3 or more clock hours
14        fall short of 5 clock hours. Any full days used  for  the
15        purposes  of  this  paragraph shall not be considered for
16        computing average daily attendance.  Days  scheduled  for
17        in-service    training    programs,   staff   development
18        activities,  or   parent-teacher   conferences   may   be
19        scheduled  separately  for  different  grade  levels  and
20        different attendance centers of the district.
21             (e)  A  session  of  not less than one clock hour of
22        teaching hospitalized or homebound pupils on-site  or  by
23        telephone  to  the classroom may be counted as 1/2 day of
24        attendance, however these pupils must receive 4  or  more
25        clock  hours  of instruction to be counted for a full day
26        of attendance.
27             (f)  A session of at least  4  clock  hours  may  be
28        counted  as  a  day of attendance for first grade pupils,
29        and pupils in full day kindergartens, and a session of  2
30        or  more hours may be counted as 1/2 day of attendance by
31        pupils in kindergartens which provide  only  1/2  day  of
32        attendance.
33             (g)  For  children  with  disabilities who are below
34        the age of 6 years and who cannot attend 2 or more  clock
 
                            -11-     LRB093 04198 SJM 04242 b
 1        hours  because  of  their  disability  or  immaturity,  a
 2        session of not less than one clock hour may be counted as
 3        1/2  day  of  attendance; however for such children whose
 4        educational needs so require a session of 4 or more clock
 5        hours may be counted as a full day of attendance.
 6             (h)  A recognized kindergarten  which  provides  for
 7        only  1/2  day of attendance by each pupil shall not have
 8        more than 1/2 day of attendance counted in any  one  day.
 9        However, kindergartens may count 2 1/2 days of attendance
10        in  any  5 consecutive school days.  When a pupil attends
11        such a kindergarten for 2 half days  on  any  one  school
12        day,  the  pupil  shall  have  the following day as a day
13        absent from school, unless the  school  district  obtains
14        permission  in  writing  from the State Superintendent of
15        Education. Attendance at kindergartens which provide  for
16        a  full  day of attendance by each pupil shall be counted
17        the same as attendance by first grade  pupils.  Only  the
18        first  year  of  attendance  in one kindergarten shall be
19        counted, except in  case  of  children  who  entered  the
20        kindergarten   in  their  fifth  year  whose  educational
21        development requires a second  year  of  kindergarten  as
22        determined  under  the rules and regulations of the State
23        Board of Education.

24    (G)  Equalized Assessed Valuation Data.
25        (1)  For purposes of the calculation of  Available  Local
26    Resources  required  pursuant  to  subsection  (D), the State
27    Board of  Education  shall  secure  from  the  Department  of
28    Revenue  the value as equalized or assessed by the Department
29    of Revenue of all taxable property of every school  district,
30    together  with  (i) the applicable tax rate used in extending
31    taxes for the funds of the district as of September 30 of the
32    previous year and (ii)  the  limiting  rate  for  all  school
33    districts  subject  to  property tax extension limitations as
34    imposed under the Property Tax Extension Limitation Law.
 
                            -12-     LRB093 04198 SJM 04242 b
 1        This equalized assessed valuation, as adjusted further by
 2    the requirements of this subsection, shall be utilized in the
 3    calculation of Available Local Resources.
 4        (2)  The equalized assessed valuation  in  paragraph  (1)
 5    shall be adjusted, as applicable, in the following manner:
 6             (a)  For the purposes of calculating State aid under
 7        this  Section,  with  respect  to  any  part  of a school
 8        district within a redevelopment project area  in  respect
 9        to   which  a  municipality  has  adopted  tax  increment
10        allocation  financing  pursuant  to  the  Tax   Increment
11        Allocation  Redevelopment Act, Sections 11-74.4-1 through
12        11-74.4-11  of  the  Illinois  Municipal  Code   or   the
13        Industrial  Jobs Recovery Law, Sections 11-74.6-1 through
14        11-74.6-50 of the Illinois Municipal Code, no part of the
15        current equalized assessed  valuation  of  real  property
16        located in any such project area which is attributable to
17        an  increase  above  the total initial equalized assessed
18        valuation of such property shall be used as part  of  the
19        equalized  assessed valuation of the district, until such
20        time as all redevelopment project costs have  been  paid,
21        as  provided  in  Section  11-74.4-8 of the Tax Increment
22        Allocation Redevelopment Act or in Section 11-74.6-35  of
23        the Industrial Jobs Recovery Law.  For the purpose of the
24        equalized  assessed  valuation of the district, the total
25        initial  equalized  assessed  valuation  or  the  current
26        equalized assessed valuation, whichever is  lower,  shall
27        be  used  until  such  time  as all redevelopment project
28        costs have been paid.
29             (b)  The real property equalized assessed  valuation
30        for  a  school  district shall be adjusted by subtracting
31        from the real property value as equalized or assessed  by
32        the  Department  of  Revenue  for  the district an amount
33        computed by dividing the amount of any abatement of taxes
34        under Section 18-170 of the Property Tax  Code  by  3.00%
 
                            -13-     LRB093 04198 SJM 04242 b
 1        for  a  district  maintaining grades kindergarten through
 2        12,  by  2.30%  for   a   district   maintaining   grades
 3        kindergarten  through  8,  or  by  1.05%  for  a district
 4        maintaining grades 9 through 12 and adjusted by an amount
 5        computed by dividing the amount of any abatement of taxes
 6        under subsection (a) of Section 18-165  of  the  Property
 7        Tax  Code  by the same percentage rates for district type
 8        as specified in this subparagraph (b).
 9        (3)  For the 1999-2000 school year and each  school  year
10    thereafter, if a school district meets all of the criteria of
11    this subsection (G)(3), the school district's Available Local
12    Resources  shall be calculated under subsection (D) using the
13    district's Extension Limitation Equalized Assessed  Valuation
14    as calculated under this subsection (G)(3).
15        For  purposes  of  this  subsection  (G)(3) the following
16    terms shall have the following meanings:
17             "Budget Year":  The school year  for  which  general
18        State aid is calculated and awarded under subsection (E).
19             "Base  Tax Year": The property tax levy year used to
20        calculate the Budget Year  allocation  of  general  State
21        aid.
22             "Preceding  Tax  Year":  The  property tax levy year
23        immediately preceding the Base Tax Year.
24             "Base Tax Year's Tax Extension": The product of  the
25        equalized assessed valuation utilized by the County Clerk
26        in  the  Base Tax Year multiplied by the limiting rate as
27        calculated  by  the  County  Clerk  and  defined  in  the
28        Property Tax Extension Limitation Law.
29             "Preceding Tax Year's Tax Extension": The product of
30        the equalized assessed valuation utilized by  the  County
31        Clerk  in  the  Preceding  Tax  Year  multiplied  by  the
32        Operating Tax Rate as defined in subsection (A).
33             "Extension  Limitation  Ratio":  A  numerical ratio,
34        certified by the County Clerk, in which the numerator  is
 
                            -14-     LRB093 04198 SJM 04242 b
 1        the  Base Tax Year's Tax Extension and the denominator is
 2        the Preceding Tax Year's Tax Extension.
 3             "Operating Tax Rate":  The  operating  tax  rate  as
 4        defined in subsection (A).
 5        If a school district is subject to property tax extension
 6    limitations  as  imposed  under  the  Property  Tax Extension
 7    Limitation Law, the State Board of Education shall  calculate
 8    the Extension Limitation Equalized Assessed Valuation of that
 9    district.   For  the  1999-2000  school  year,  the Extension
10    Limitation Equalized Assessed Valuation of a school  district
11    as  calculated by the State Board of Education shall be equal
12    to the product of  the  district's  1996  Equalized  Assessed
13    Valuation and the district's Extension Limitation Ratio.  For
14    the  2000-2001  school  year and each school year thereafter,
15    the Extension Limitation Equalized Assessed  Valuation  of  a
16    school district as calculated by the State Board of Education
17    shall  be  equal  to  the  product  of the Equalized Assessed
18    Valuation last used in the calculation of general  State  aid
19    and   the  district's  Extension  Limitation  Ratio.  If  the
20    Extension Limitation Equalized Assessed Valuation of a school
21    district as calculated under this subsection (G)(3)  is  less
22    than   the   district's   equalized   assessed  valuation  as
23    calculated pursuant to subsections (G)(1)  and  (G)(2),  then
24    for  purposes of calculating the district's general State aid
25    for  the  Budget  Year  pursuant  to  subsection  (E),   that
26    Extension  Limitation  Equalized  Assessed Valuation shall be
27    utilized  to  calculate  the   district's   Available   Local
28    Resources under subsection (D).
29        (4)  For  the  purposes  of calculating general State aid
30    for the 1999-2000 school year  only,  if  a  school  district
31    experienced   a   triennial  reassessment  on  the  equalized
32    assessed valuation used  in  calculating  its  general  State
33    financial  aid  apportionment  for the 1998-1999 school year,
34    the State Board of Education shall  calculate  the  Extension
 
                            -15-     LRB093 04198 SJM 04242 b
 1    Limitation  Equalized Assessed Valuation that would have been
 2    used to calculate the district's 1998-1999 general State aid.
 3    This amount shall equal the product of the equalized assessed
 4    valuation  used  to  calculate  general  State  aid  for  the
 5    1997-1998 school year and the district's Extension Limitation
 6    Ratio.   If  the  Extension  Limitation  Equalized   Assessed
 7    Valuation  of  the  school  district as calculated under this
 8    paragraph (4) is less than the district's equalized  assessed
 9    valuation  utilized  in  calculating the district's 1998-1999
10    general  State  aid  allocation,   then   for   purposes   of
11    calculating  the  district's  general  State  aid pursuant to
12    paragraph (5) of subsection (E),  that  Extension  Limitation
13    Equalized  Assessed  Valuation shall be utilized to calculate
14    the district's Available Local Resources.
15        (5)  For school districts  having  a  majority  of  their
16    equalized  assessed  valuation  in  any  county  except Cook,
17    DuPage, Kane, Lake,  McHenry,  or  Will,  if  the  amount  of
18    general  State  aid  allocated to the school district for the
19    1999-2000 school year under the provisions of subsection (E),
20    (H), and (J) of this Section  is  less  than  the  amount  of
21    general State aid allocated to the district for the 1998-1999
22    school  year  under these subsections, then the general State
23    aid of the district for the 1999-2000 school year only  shall
24    be  increased  by  the difference between these amounts.  The
25    total payments made under this paragraph (5) shall not exceed
26    $14,000,000.   Claims  shall  be  prorated  if  they   exceed
27    $14,000,000.

28    (H)  Supplemental General State Aid.
29        (1)  In  addition  to  the  general  State  aid  a school
30    district is allotted pursuant to subsection  (E),  qualifying
31    school  districts  shall receive a grant, paid in conjunction
32    with  a  district's  payments  of  general  State  aid,   for
33    supplemental  general  State aid based upon the concentration
34    level of  children  from  low-income  households  within  the
 
                            -16-     LRB093 04198 SJM 04242 b
 1    school  district.  Supplemental State aid grants provided for
 2    school districts under this subsection shall be  appropriated
 3    for distribution to school districts as part of the same line
 4    item  in  which  the  general  State  financial aid of school
 5    districts is appropriated under this Section.
 6        (1.5)  This paragraph (1.5) applies only to those  school
 7    years  preceding  the  2003-2004 school year. For purposes of
 8    this  subsection  (H),  the  term  "Low-Income  Concentration
 9    Level" shall be the low-income eligible pupil count from  the
10    most recently available federal census divided by the Average
11    Daily Attendance of the school district. If, however, (i) the
12    percentage  decrease  from the 2 most recent federal censuses
13    in the low-income eligible  pupil  count  of  a  high  school
14    district  with fewer than 400 students exceeds by 75% or more
15    the percentage change in the total low-income eligible  pupil
16    count   of  contiguous  elementary  school  districts,  whose
17    boundaries are coterminous with the high school district,  or
18    (ii)  a  high school district within 2 counties and serving 5
19    elementary school districts, whose boundaries are coterminous
20    with the high school district, has a percentage decrease from
21    the 2 most recent federal censuses in the low-income eligible
22    pupil count and there is a percentage increase in  the  total
23    low-income   eligible  pupil  count  of  a  majority  of  the
24    elementary school districts in excess of 50% from the 2  most
25    recent  federal  censuses,  then  the  high school district's
26    low-income eligible pupil  count  from  the  earlier  federal
27    census  shall  be  the number used as the low-income eligible
28    pupil count for the high school  district,  for  purposes  of
29    this  subsection (H).  The changes made to this paragraph (1)
30    by Public Act 92-28 shall apply to supplemental general State
31    aid grants for school years preceding  the  2003-2004  school
32    year  that are paid in fiscal year 1999 or and in each fiscal
33    year thereafter  and to any State aid payments made in fiscal
34    year 1994 through fiscal year  1998  pursuant  to  subsection
 
                            -17-     LRB093 04198 SJM 04242 b
 1    1(n) of Section 18-8 of this Code (which was repealed on July
 2    1,  1998),  and  any high school district that is affected by
 3    Public Act 92-28  is  entitled  to  a  recomputation  of  its
 4    supplemental general State aid grant or State aid paid in any
 5    of  those  fiscal  years.   This  recomputation  shall not be
 6    affected by any other funding.
 7        (1.10)  This paragraph (1.10) applies  to  the  2003-2004
 8    school  year and each school year thereafter. For purposes of
 9    this  subsection  (4),  the  term  "Low-Income  Concentration
10    Level" shall be  the  low-income  eligible  pupil  count  (as
11    determined  by  the Department of Human Services based on the
12    number of pupils who are eligible for at  least  one  of  the
13    following  low  income programs: Medicaid, KidCare, TANF, and
14    Food Stamps) divided by the Average Daily Attendance  of  the
15    school district.
16        (2)  Supplemental  general  State  aid  pursuant  to this
17    subsection  (H)  shall  be  provided  as  follows   for   the
18    1998-1999, 1999-2000, and 2000-2001 school years only:
19             (a)  For  any  school  district  with  a  Low Income
20        Concentration Level of at least 20% and  less  than  35%,
21        the grant for any school year shall be $800 multiplied by
22        the low income eligible pupil count.
23             (b)  For  any  school  district  with  a  Low Income
24        Concentration Level of at least 35% and  less  than  50%,
25        the  grant  for the 1998-1999 school year shall be $1,100
26        multiplied by the low income eligible pupil count.
27             (c)  For any  school  district  with  a  Low  Income
28        Concentration  Level  of  at least 50% and less than 60%,
29        the grant for the 1998-99 school  year  shall  be  $1,500
30        multiplied by the low income eligible pupil count.
31             (d)  For  any  school  district  with  a  Low Income
32        Concentration Level of 60% or more,  the  grant  for  the
33        1998-99 school year shall be $1,900 multiplied by the low
34        income eligible pupil count.
 
                            -18-     LRB093 04198 SJM 04242 b
 1             (e)  For  the  1999-2000  school year, the per pupil
 2        amount specified  in  subparagraphs  (b),  (c),  and  (d)
 3        immediately  above  shall be increased to $1,243, $1,600,
 4        and $2,000, respectively.
 5             (f)  For the 2000-2001 school year,  the  per  pupil
 6        amounts  specified  in  subparagraphs  (b),  (c), and (d)
 7        immediately above shall be $1,273,  $1,640,  and  $2,050,
 8        respectively.
 9        (2.5)  Supplemental  general  State  aid pursuant to this
10    subsection (H) shall be provided as follows for the 2002-2003
11    school year and each school year thereafter:
12             (a)  For any  school  district  with  a  Low  Income
13        Concentration  Level of less than 10%, the grant for each
14        school year shall be $355 multiplied by  the  low  income
15        eligible pupil count.
16             (b)  For  any  school  district  with  a  Low Income
17        Concentration Level of at least 10% and  less  than  20%,
18        the  grant  for each school year shall be $675 multiplied
19        by the low income eligible pupil count.
20             (c)  For any  school  district  with  a  Low  Income
21        Concentration  Level  of  at least 20% and less than 35%,
22        the grant for each school year shall be $1,330 multiplied
23        by the low income eligible pupil count.
24             (d)  For any  school  district  with  a  Low  Income
25        Concentration  Level  of  at least 35% and less than 50%,
26        the grant for each school year shall be $1,362 multiplied
27        by the low income eligible pupil count.
28             (e)  For any  school  district  with  a  Low  Income
29        Concentration  Level  of  at least 50% and less than 60%,
30        the grant for each school year shall be $1,680 multiplied
31        by the low income eligible pupil count.
32             (f)  For any  school  district  with  a  Low  Income
33        Concentration  Level  of  60% or more, the grant for each
34        school year shall be $2,080 multiplied by the low  income
 
                            -19-     LRB093 04198 SJM 04242 b
 1        eligible pupil count.
 2        (2.10)  Supplemental  general  State aid pursuant to this
 3    subsection (H) shall be provided as follows for the 2003-2004
 4    school year and each school year thereafter:
 5             (a)  For any  school  district  with  a  Low  Income
 6        Concentration  Level  of  15% or less, the grant for each
 7        school year shall be $355 multiplied by  the  low  income
 8        eligible pupil count.
 9             (b)  For  any  school  district  with  a  Low Income
10        Concentration Level greater than 15%, the grant for  each
11        school   year  shall  be  $294.25  added  to  $2,700  and
12        multiplied by the square of the Low Income  Concentration
13        Level,  all  multiplied  by the low income eligible pupil
14        count.
15        (3)  School districts with an Average Daily Attendance of
16    more than  1,000  and  less  than  50,000  that  qualify  for
17    supplemental  general  State  aid pursuant to this subsection
18    shall submit a plan to the State Board of Education prior  to
19    October  30  of  each year for the use of the funds resulting
20    from this grant of supplemental general  State  aid  for  the
21    improvement  of  instruction  in  which  priority is given to
22    meeting the education needs of disadvantaged children.   Such
23    plan   shall  be  submitted  in  accordance  with  rules  and
24    regulations promulgated by the State Board of Education.
25        (4)  School districts with an Average Daily Attendance of
26    50,000 or more that qualify for  supplemental  general  State
27    aid   pursuant  to  this  subsection  shall  be  required  to
28    distribute from funds available pursuant to this Section,  no
29    less  than  $261,000,000  in  accordance  with  the following
30    requirements:
31             (a)  The required amounts shall  be  distributed  to
32        the  attendance centers within the district in proportion
33        to the number  of  pupils  enrolled  at  each  attendance
34        center  who are eligible to receive free or reduced-price
 
                            -20-     LRB093 04198 SJM 04242 b
 1        lunches or breakfasts under the federal  Child  Nutrition
 2        Act  of  1966  and  under  the  National School Lunch Act
 3        during the immediately preceding school year.
 4             (b)  The   distribution   of   these   portions   of
 5        supplemental  and  general  State  aid  among  attendance
 6        centers according to  these  requirements  shall  not  be
 7        compensated  for  or  contravened  by  adjustments of the
 8        total of  other  funds  appropriated  to  any  attendance
 9        centers, and the Board of Education shall utilize funding
10        from  one  or several sources in order to fully implement
11        this provision annually prior to the opening of school.
12             (c)  Each attendance center shall be provided by the
13        school district a distribution  of  noncategorical  funds
14        and other categorical funds to which an attendance center
15        is entitled under law in order that the general State aid
16        and   supplemental   general   State   aid   provided  by
17        application of this subsection  supplements  rather  than
18        supplants  the noncategorical funds and other categorical
19        funds provided by the school district to  the  attendance
20        centers.
21             (d)  Any  funds made available under this subsection
22        that by reason of the provisions of this  subsection  are
23        not  required  to be allocated and provided to attendance
24        centers may be used and appropriated by the board of  the
25        district for any lawful school purpose.
26             (e)  Funds received by an attendance center pursuant
27        to this subsection shall be used by the attendance center
28        at  the  discretion  of  the  principal  and local school
29        council for programs to improve educational opportunities
30        at qualifying schools through the following programs  and
31        services:  early  childhood education, reduced class size
32        or improved adult to student classroom ratio,  enrichment
33        programs,  remedial  assistance,  attendance improvement,
34        and other  educationally  beneficial  expenditures  which
 
                            -21-     LRB093 04198 SJM 04242 b
 1        supplement  the  regular and basic programs as determined
 2        by the State Board of Education. Funds provided shall not
 3        be expended for any political  or  lobbying  purposes  as
 4        defined by board rule.
 5             (f)  Each district subject to the provisions of this
 6        subdivision  (H)(4)  shall  submit  an acceptable plan to
 7        meet the educational needs of disadvantaged children,  in
 8        compliance  with  the  requirements of this paragraph, to
 9        the State Board of Education prior to  July  15  of  each
10        year. This plan shall be consistent with the decisions of
11        local  school  councils concerning the school expenditure
12        plans developed in accordance  with  part  4  of  Section
13        34-2.3.  The State Board shall approve or reject the plan
14        within  60  days  after  its  submission.  If the plan is
15        rejected, the  district  shall  give  written  notice  of
16        intent   to  modify  the  plan  within  15  days  of  the
17        notification of rejection and then submit a modified plan
18        within 30 days after the date of the  written  notice  of
19        intent  to  modify.  Districts  may  amend approved plans
20        pursuant to rules  promulgated  by  the  State  Board  of
21        Education.
22             Upon  notification  by  the State Board of Education
23        that the district has not submitted a plan prior to  July
24        15  or  a  modified plan within the time period specified
25        herein, the State aid funds  affected  by  that  plan  or
26        modified  plan  shall  be  withheld by the State Board of
27        Education until a plan or modified plan is submitted.
28             If the district fails to  distribute  State  aid  to
29        attendance  centers  in accordance with an approved plan,
30        the plan for the following year shall allocate funds,  in
31        addition   to   the  funds  otherwise  required  by  this
32        subsection,  to  those  attendance  centers  which   were
33        underfunded  during the previous year in amounts equal to
34        such underfunding.
 
                            -22-     LRB093 04198 SJM 04242 b
 1             For purposes of  determining  compliance  with  this
 2        subsection  in relation to the requirements of attendance
 3        center funding, each district subject to  the  provisions
 4        of this subsection shall submit as a separate document by
 5        December  1 of each year a report of expenditure data for
 6        the prior year in addition to  any  modification  of  its
 7        current  plan.  If it is determined that there has been a
 8        failure to comply with the expenditure provisions of this
 9        subsection regarding contravention  or  supplanting,  the
10        State  Superintendent  of Education shall, within 60 days
11        of receipt of the report, notify  the  district  and  any
12        affected local school council.  The district shall within
13        45  days of receipt of that notification inform the State
14        Superintendent of Education of the remedial or corrective
15        action to be taken, whether  by amendment of the  current
16        plan,  if  feasible, or by adjustment in the plan for the
17        following  year.   Failure  to  provide  the  expenditure
18        report or the  notification  of  remedial  or  corrective
19        action  in  a timely manner shall result in a withholding
20        of the affected funds.
21             The State Board of Education shall promulgate  rules
22        and  regulations  to  implement  the  provisions  of this
23        subsection.   No  funds  shall  be  released  under  this
24        subdivision (H)(4) to any district that has not submitted
25        a plan that has been  approved  by  the  State  Board  of
26        Education.

27    (I)  General State Aid for Newly Configured School Districts.
28        (1)  For  a  new  school  district  formed  by  combining
29    property   included  totally  within  2  or  more  previously
30    existing school districts, for its first  year  of  existence
31    the  general  State  aid  and  supplemental general State aid
32    calculated under this Section shall be computed for  the  new
33    district  and for the previously existing districts for which
34    property is totally included within the new district.  If the
 
                            -23-     LRB093 04198 SJM 04242 b
 1    computation on the basis of the previously existing districts
 2    is greater, a supplementary payment equal to  the  difference
 3    shall  be  made for the first 4 years of existence of the new
 4    district.
 5        (2)  For a school  district  which  annexes  all  of  the
 6    territory  of  one or more entire other school districts, for
 7    the  first  year  during  which  the  change  of   boundaries
 8    attributable  to  such  annexation  becomes effective for all
 9    purposes as determined under Section 7-9 or 7A-8, the general
10    State aid and supplemental general State aid calculated under
11    this Section shall be computed for the annexing  district  as
12    constituted  after  the  annexation  and for the annexing and
13    each annexed district as constituted prior to the annexation;
14    and if the computation on  the  basis  of  the  annexing  and
15    annexed  districts  as constituted prior to the annexation is
16    greater, a supplementary  payment  equal  to  the  difference
17    shall  be  made  for  the  first  4 years of existence of the
18    annexing school district as constituted upon such annexation.
19        (3)  For 2 or more school districts which  annex  all  of
20    the  territory  of one or more entire other school districts,
21    and for 2 or more community unit districts which result  upon
22    the  division  (pursuant  to petition under Section 11A-2) of
23    one or more other unit school districts into 2 or more  parts
24    and  which  together include all of the parts into which such
25    other unit school district or districts are so  divided,  for
26    the   first  year  during  which  the  change  of  boundaries
27    attributable to such annexation or division becomes effective
28    for all purposes as determined under Section 7-9  or  11A-10,
29    as  the  case  may be, the general State aid and supplemental
30    general State aid calculated  under  this  Section  shall  be
31    computed   for   each   annexing  or  resulting  district  as
32    constituted after the annexation or  division  and  for  each
33    annexing  and  annexed  district,  or  for each resulting and
34    divided district, as constituted prior to the  annexation  or
 
                            -24-     LRB093 04198 SJM 04242 b
 1    division;  and  if the aggregate of the general State aid and
 2    supplemental  general  State  aid  as  so  computed  for  the
 3    annexing or resulting  districts  as  constituted  after  the
 4    annexation  or  division  is  less  than the aggregate of the
 5    general State aid and supplemental general State  aid  as  so
 6    computed  for  the annexing and annexed districts, or for the
 7    resulting and divided districts, as constituted prior to  the
 8    annexation or division, then a supplementary payment equal to
 9    the  difference  shall be made and allocated between or among
10    the annexing or resulting districts, as constituted upon such
11    annexation or division,  for  the  first  4  years  of  their
12    existence.   The  total difference payment shall be allocated
13    between or among the annexing or resulting districts  in  the
14    same  ratio  as the pupil enrollment from that portion of the
15    annexed or divided district or districts which is annexed  to
16    or included in each such annexing or resulting district bears
17    to  the  total  pupil  enrollment  from the entire annexed or
18    divided district or districts, as such  pupil  enrollment  is
19    determined  for the school year last ending prior to the date
20    when the change of boundaries attributable to the  annexation
21    or  division  becomes effective for all purposes.  The amount
22    of the total difference payment and the amount thereof to  be
23    allocated  to  the  annexing  or resulting districts shall be
24    computed by the State Board of  Education  on  the  basis  of
25    pupil  enrollment  and other data which shall be certified to
26    the State Board of Education, on forms which it shall provide
27    for that purpose, by the regional superintendent  of  schools
28    for each educational service region in which the annexing and
29    annexed  districts,  or  resulting  and divided districts are
30    located.
31        (3.5)  Claims  for  financial   assistance   under   this
32    subsection  (I)  shall  not be recomputed except as expressly
33    provided under this Section.
34        (4)  Any supplementary payment made under this subsection
 
                            -25-     LRB093 04198 SJM 04242 b
 1    (I) shall be treated as separate from all other payments made
 2    pursuant to this Section.

 3    (J)  Supplementary Grants in Aid.
 4        (0.05)  This subsection (J) applies only to school  years
 5    preceding the 2003-2004 school year.
 6        (1)  Notwithstanding   any   other   provisions  of  this
 7    Section, the amount of the aggregate  general  State  aid  in
 8    combination  with  supplemental  general State aid under this
 9    Section for which each school district is eligible  shall  be
10    no  less  than  the amount of the aggregate general State aid
11    entitlement that was received by the district  under  Section
12    18-8  (exclusive  of  amounts received under subsections 5(p)
13    and 5(p-5) of that Section)  for  the  1997-98  school  year,
14    pursuant  to the provisions of that Section as it was then in
15    effect.  If  a  school  district  qualifies  to   receive   a
16    supplementary  payment  made  under  this subsection (J), the
17    amount of the aggregate general State aid in combination with
18    supplemental general State aid under this Section which  that
19    district is eligible to receive for each school year shall be
20    no  less  than  the amount of the aggregate general State aid
21    entitlement that was received by the district  under  Section
22    18-8  (exclusive  of  amounts received under subsections 5(p)
23    and 5(p-5) of that Section) for the  1997-1998  school  year,
24    pursuant  to the provisions of that Section as it was then in
25    effect.
26        (2)  If, as provided in paragraph (1) of this  subsection
27    (J),  a school district is to receive aggregate general State
28    aid in combination with supplemental general State aid  under
29    this  Section  for the 1998-99 school year and any subsequent
30    school year that in any such school year  is  less  than  the
31    amount  of  the  aggregate general State aid entitlement that
32    the district received for the 1997-98 school year, the school
33    district shall also receive, from  a  separate  appropriation
34    made  for  purposes  of  this subsection (J), a supplementary
 
                            -26-     LRB093 04198 SJM 04242 b
 1    payment that is equal to the amount of the difference in  the
 2    aggregate State aid figures as described in paragraph (1).
 3        (3)  (Blank).

 4    (K)  Grants to Laboratory and Alternative Schools.
 5        In  calculating  the  amount  to be paid to the governing
 6    board of a  public  university  that  operates  a  laboratory
 7    school  under  this Section or to any alternative school that
 8    is operated by a  regional  superintendent  of  schools,  the
 9    State Board of Education shall require by rule such reporting
10    requirements as it deems necessary.
11        As  used  in  this  Section,  "laboratory school" means a
12    public school which is  created  and  operated  by  a  public
13    university and approved by the State Board of Education.  The
14    governing  board  of a public university which receives funds
15    from the State  Board  under  this  subsection  (K)  may  not
16    increase  the  number  of students enrolled in its laboratory
17    school from a single district, if that  district  is  already
18    sending  50 or more students, except under a mutual agreement
19    between the school board of a student's district of residence
20    and the university which operates the laboratory  school.   A
21    laboratory  school  may  not  have  more than 1,000 students,
22    excluding students with disabilities in a  special  education
23    program.
24        As  used  in  this  Section, "alternative school" means a
25    public school which is created and  operated  by  a  Regional
26    Superintendent  of Schools and approved by the State Board of
27    Education.  Such alternative schools  may  offer  courses  of
28    instruction  for  which  credit  is  given  in regular school
29    programs, courses to prepare students  for  the  high  school
30    equivalency  testing  program  or vocational and occupational
31    training.   A regional superintendent of schools may contract
32    with a school district or a public community college district
33    to operate an  alternative  school.   An  alternative  school
34    serving  more  than  one  educational  service  region may be
 
                            -27-     LRB093 04198 SJM 04242 b
 1    established by the regional superintendents of schools of the
 2    affected educational service regions.  An alternative  school
 3    serving  more  than  one  educational  service  region may be
 4    operated under such terms as the regional superintendents  of
 5    schools of those educational service regions may agree.
 6        Each  laboratory  and  alternative  school shall file, on
 7    forms provided by the State Superintendent of  Education,  an
 8    annual  State  aid  claim  which  states  the  Average  Daily
 9    Attendance  of  the  school's  students by month.  The best 3
10    months' Average Daily Attendance shall be computed  for  each
11    school.  The  general State aid entitlement shall be computed
12    by multiplying the applicable Average Daily Attendance by the
13    Foundation Level as determined under this Section.

14    (L)  Payments,   Additional   Grants   in   Aid   and   Other
15    Requirements.
16        (1)  For a school district operating under the  financial
17    supervision  of  an  Authority created under Article 34A, the
18    general State aid otherwise payable to  that  district  under
19    this  Section,  but  not  the supplemental general State aid,
20    shall be reduced by an amount equal to  the  budget  for  the
21    operations  of the Authority as certified by the Authority to
22    the State Board of Education, and an  amount  equal  to  such
23    reduction  shall  be  paid  to the Authority created for such
24    district for its operating expenses in the manner provided in
25    Section 18-11.  The remainder of general State school aid for
26    any such district shall be paid in  accordance  with  Article
27    34A  when  that Article provides for a disposition other than
28    that provided by this Article.
29        (2)  (Blank).
30        (3)  Summer school.  Summer school payments shall be made
31    as provided in Section 18-4.3.

32    (M)  Education Funding Advisory Board.
33        The Education Funding Advisory Board, hereinafter in this
 
                            -28-     LRB093 04198 SJM 04242 b
 1    subsection (M) referred to as the "Board", is hereby created.
 2    The Board shall consist of 5 members who are appointed by the
 3    Governor, by and with the advice and consent of  the  Senate.
 4    The   members  appointed  shall  include  representatives  of
 5    education, business, and  the  general  public.  One  of  the
 6    members  so  appointed shall be designated by the Governor at
 7    the time the appointment is made as the  chairperson  of  the
 8    Board.  The initial members of the Board may be appointed any
 9    time after the effective date of this amendatory Act of 1997.
10    The regular term of each member of the Board shall be  for  4
11    years  from  the third Monday of January of the year in which
12    the term of the member's appointment is to  commence,  except
13    that  of  the  5  initial  members  appointed to serve on the
14    Board, the member who is appointed as the  chairperson  shall
15    serve  for  a  term  that commences on the date of his or her
16    appointment and expires on the third Monday of January, 2002,
17    and the remaining 4 members,  by  lots  drawn  at  the  first
18    meeting  of  the  Board  that is held after all 5 members are
19    appointed, shall determine 2 of their  number  to  serve  for
20    terms   that   commence  on  the  date  of  their  respective
21    appointments and expire on the third Monday of January, 2001,
22    and 2 of their number to serve for terms that commence on the
23    date of their respective appointments and expire on the third
24    Monday of January, 2000.  All members appointed to  serve  on
25    the  Board  shall serve until their respective successors are
26    appointed and confirmed.  Vacancies shall be  filled  in  the
27    same  manner  as  original  appointments.   If  a  vacancy in
28    membership occurs at  a  time  when  the  Senate  is  not  in
29    session,  the  Governor  shall  make  a temporary appointment
30    until the next meeting of the Senate, when he  or  she  shall
31    appoint,  by and with the advice and consent of the Senate, a
32    person to fill that membership for the  unexpired  term.   If
33    the  Senate  is  not in session when the initial appointments
34    are made, those appointments shall be made as in the case  of
 
                            -29-     LRB093 04198 SJM 04242 b
 1    vacancies.
 2        The  Education  Funding  Advisory  Board  shall be deemed
 3    established,  and  the  initial  members  appointed  by   the
 4    Governor  to serve as members of the Board shall take office,
 5    on the date that the Governor makes his or her appointment of
 6    the fifth initial member of the Board, whether those  initial
 7    members   are   then  serving  pursuant  to  appointment  and
 8    confirmation or pursuant to temporary appointments  that  are
 9    made by the Governor as in the case of vacancies.
10        The  State  Board  of  Education shall provide such staff
11    assistance to the Education  Funding  Advisory  Board  as  is
12    reasonably  required  for the proper performance by the Board
13    of its responsibilities.
14        For school years after the  2000-2001  school  year,  the
15    Education  Funding  Advisory  Board, in consultation with the
16    State Board  of  Education,  shall  make  recommendations  as
17    provided  in  this subsection (M) to the General Assembly for
18    the foundation level under subdivision (B)(3) of this Section
19    and for the supplemental general State aid grant level  under
20    subsection  (H)  of  this  Section  for  districts  with high
21    concentrations of children  from  poverty.   The  recommended
22    foundation  level  shall be determined based on a methodology
23    which  incorporates  the  basic  education  expenditures   of
24    low-spending  schools  exhibiting  high academic performance.
25    The  Education  Funding  Advisory  Board  shall   make   such
26    recommendations  to  the General Assembly on January 1 of odd
27    numbered years, beginning January 1, 2001.

28    (N)  (Blank).

29    (O)  References.
30        (1)  References in other laws to the various subdivisions
31    of Section 18-8 as that Section existed before its repeal and
32    replacement by this Section 18-8.05 shall be deemed to  refer
33    to  the  corresponding provisions of this Section 18-8.05, to
 
                            -30-     LRB093 04198 SJM 04242 b
 1    the extent that those references remain applicable.
 2        (2)  References in other laws to State  Chapter  1  funds
 3    shall  be  deemed  to refer to the supplemental general State
 4    aid provided under subsection (H) of this Section.
 5    (Source: P.A. 91-24, eff. 7-1-99; 91-93, eff. 7-9-99;  91-96,
 6    eff.  7-9-99;  91-111,  eff.  7-14-99;  91-357, eff. 7-29-99;
 7    91-533,  eff.  8-13-99;  92-7,  eff.  6-29-01;  92-16,   eff.
 8    6-28-01; 92-28, eff. 7-1-01; 92-29, eff. 7-1-01; 92-269, eff.
 9    8-7-01;  92-604,  eff.  7-1-02; 92-651, eff. 7-11-02; 92-636,
10    eff. 7-11-02; revised 7-26-02.)

11        Section 5-10.  The State Aid Continuing Appropriation Law
12    is amended by changing Sections 15-10, 15-15, and  15-25  and
13    adding Section 15-21 as follows:

14        (105 ILCS 235/15-10)
15        (Section scheduled to be repealed on June 30, 2003)
16        Sec. 15-10.  Annual budget; recommendation.  The Governor
17    shall  include  a  Common  School  Fund recommendation to the
18    State Board of Education in the fiscal year 1999 through 2003
19    annual  Budget Budgets sufficient to  fund  (i)  the  General
20    State Aid Formula set forth in subsection (E) (Computation of
21    General  State  Aid) and subsection (H) (Supplemental General
22    State Aid) of Section 18-8.05 of the School Code and (ii) the
23    supplementary payments for  school  districts  set  forth  in
24    subsection  (J)  (Supplementary  Grants  in  Aid)  of Section
25    18-8.05 of the School Code.
26    (Source: P.A. 92-7, eff. 6-29-01; 92-597, eff. 6-28-02.)

27        (105 ILCS 235/15-15)
28        (Section scheduled to be repealed on June 30, 2003)
29        Sec. 15-15.  State Aid  Formula;  Funding.   The  General
30    Assembly     shall   annually   make   Common   School   Fund
31    appropriations to the State  Board  of  Education  in  fiscal
 
                            -31-     LRB093 04198 SJM 04242 b
 1    years  1999  through  2003 sufficient to fund (i) the General
 2    State Aid Formula set forth in subsection (E) (Computation of
 3    General State Aid) and subsection (H)  (Supplemental  General
 4    State Aid) of Section 18-8.05 of the School Code and (ii) the
 5    supplementary  payments  for  school  districts  set forth in
 6    subsection (J)  (Supplementary  Grants  in  Aid)  of  Section
 7    18-8.05 of the School Code.
 8    (Source: P.A. 92-7, eff. 6-29-01; 92-597, eff. 6-28-02.)

 9        (105 ILCS 235/15-21 new)
10        Sec.  15-21.  Continuing  appropriation.  If  the General
11    Assembly fails to make Common School Fund  appropriations  to
12    the  State  Board  of Education in fiscal year 2004 or in any
13    fiscal year thereafter sufficient to fund the  General  State
14    Aid  Formula  set  forth  in  subsection  (E) (Computation of
15    General State Aid) and subsection (H)  (Supplemental  General
16    State  Aid)  of  Section 18-8.05 of the School Code, this Law
17    shall constitute an irrevocable and continuing  appropriation
18    from  the  Common  School  Fund  of all amounts necessary for
19    those purposes.

20        (105 ILCS 235/15-25)
21        (Section scheduled to be repealed on June 30, 2003)
22        Sec. 15-25.  Repeal.  This Article is repealed  June  30,
23    2003.  Section  15-20  of  this  Article is repealed June 30,
24    2002.
25    (Source: P.A. 92-7, eff. 6-29-01; 92-597, eff. 6-28-02.)

26                             ARTICLE 10

27        Section 10-5.  The Election Code is amended  by  changing
28    Section 28-2 as follows:

29        (10 ILCS 5/28-2) (from Ch. 46, par. 28-2)
 
                            -32-     LRB093 04198 SJM 04242 b
 1        Sec.  28-2.  (a)  Except  as  otherwise  provided in this
 2    Section, petitions for the submission of public questions  to
 3    referendum  must  be  filed  with  the appropriate officer or
 4    board not less than 78 days prior to a regular election to be
 5    eligible for submission on the ballot at such  election;  and
 6    petitions  for  the  submission  of  a question under Section
 7    18-120 of the Property  Tax  Code  must  be  filed  with  the
 8    appropriate officer or board not more than 10 months nor less
 9    than 6 months prior to the election at which such question is
10    to be submitted to the voters.
11        (b)  However,  petitions  for  the submission of a public
12    question  to  referendum  which  proposes  the  creation   or
13    formation  of  a political subdivision must be filed with the
14    appropriate officer or board not less than 108 days prior  to
15    a  regular  election  to  be  eligible  for submission on the
16    ballot at such election.
17        (c)  Resolutions or ordinances  of  governing  boards  of
18    political  subdivisions  which  initiate  the  submission  of
19    public  questions  pursuant  to  law must be adopted not less
20    than 65 days before a  regularly  scheduled  election  to  be
21    eligible for submission on the ballot at such election.
22        (d)  A  petition,  resolution or ordinance initiating the
23    submission  of  a  public  question  may  specify  a  regular
24    election at which the question is to be submitted,  and  must
25    so  specify  if  the  statute authorizing the public question
26    requires submission at a  particular  election.  However,  no
27    petition,  resolution  or ordinance initiating the submission
28    of a public question, other  than  a  legislative  resolution
29    initiating an amendment to the Constitution, may specify such
30    submission  at  an election more than one year after the date
31    on which it is filed or  adopted,  as  the  case  may  be.  A
32    petition,   resolution   or  ordinance  initiating  a  public
33    question which specifies a particular election at  which  the
34    question  is  to  be submitted shall be so limited, and shall
 
                            -33-     LRB093 04198 SJM 04242 b
 1    not be  valid  as  to  any  other  election,  other  than  an
 2    emergency referendum ordered pursuant to Section 2A-1.4.
 3        (e)  If  a petition initiating a public question does not
 4    specify a regularly scheduled election, the  public  question
 5    shall be submitted to referendum at the next regular election
 6    occurring  not  less  than  78  days  after the filing of the
 7    petition, or not less than 108 days after  the  filing  of  a
 8    petition  for  referendum  to create a political subdivision.
 9    If a resolution or ordinance  initiating  a  public  question
10    does  not  specify a regularly scheduled election, the public
11    question shall be submitted to referendum at the next regular
12    election occurring not less than 65 days after  the  adoption
13    of the resolution or ordinance.
14        (f)  In  the case of back door referenda, any limitations
15    in  another  statute  authorizing  such  a  referendum  which
16    restrict the time in which the  initiating  petition  may  be
17    validly  filed  shall  apply to such petition, in addition to
18    the filing deadlines specified in this Section for submission
19    at a particular election.  In  the  case  of  any  back  door
20    referendum, the publication of the ordinance or resolution of
21    the  political  subdivision shall include a notice of (1) the
22    specific  number  of  voters  required  to  sign  a  petition
23    requesting that a public question be submitted to the  voters
24    of  the  subdivision;  (2) the time within which the petition
25    must  be  filed;  and  (3)  the  date  of   the   prospective
26    referendum.    The   secretary  or  clerk  of  the  political
27    subdivision shall provide a petition form to  any  individual
28    requesting  one.  As used herein, a "back door referendum" is
29    the submission of a  public  question  to  the  voters  of  a
30    political  subdivision,  initiated by a petition of voters or
31    residents of such political subdivision, to determine whether
32    an action by the governing body of such subdivision shall  be
33    adopted or rejected.
34        (g)  A  petition  for the incorporation or formation of a
 
                            -34-     LRB093 04198 SJM 04242 b
 1    new political subdivision whose officers are  to  be  elected
 2    rather  than  appointed must have attached to it an affidavit
 3    attesting that at least 108 days and no more  than  138  days
 4    prior  to  such  election  notice  of  intention to file such
 5    petition was published in a newspaper  published  within  the
 6    proposed political subdivision, or if none, in a newspaper of
 7    general  circulation  within  the  territory  of the proposed
 8    political subdivision in substantially the following form:
 9              NOTICE OF PETITION TO FORM A NEW........
10        Residents of the territory described below  are  notified
11    that  a  petition  will  or  has  been  filed  in  the Office
12    of............requesting  a   referendum   to   establish   a
13    new........, to be called the............
14        *The officers of the new...........will be elected on the
15    same  day  as  the  referendum.  Candidates for the governing
16    board of the new......may file nominating petitions with  the
17    officer named above until...........
18        The  territory  proposed  to  comprise  the new........is
19    described as follows:
20             (description of territory included in petition)
21             (signature)....................................
22             Name and address of person or persons proposing
23             the new political subdivision.
24        * Where applicable.
25        Failure to file such affidavit, or failure to publish the
26    required  notice  with  the  correct  information   contained
27    therein  shall  render  the petition, and any referendum held
28    pursuant to such petition, null and void.
29        Notwithstanding  the   foregoing   provisions   of   this
30    subsection  (g)  or  any  other  provisions of this Code, the
31    publication of notice  and  affidavit  requirements  of  this
32    subsection  (g)  shall  not apply to any petition filed under
33    Article 7, 7A, 11A, 11B, or 11D of the School Code nor to any
34    referendum held pursuant to any such  petition,  and  neither
 
                            -35-     LRB093 04198 SJM 04242 b
 1    any  petition  filed  under  any  of  those  Articles nor any
 2    referendum held  pursuant  to  any  such  petition  shall  be
 3    rendered  null  and  void  because  of the failure to file an
 4    affidavit or publish a notice with respect to the petition or
 5    referendum  as  required  under  this  subsection   (g)   for
 6    petitions  that  are not filed under any of those Articles of
 7    the School Code.
 8    (Source: P.A. 90-459, eff. 8-17-97.)

 9        Section 10-10. The School Code  is  amended  by  changing
10    Sections  2-3.25d,  3-14,  7-1,  7-2,  7-4,  7-6, 7-9, 11A-2,
11    11A-3, 11A-8, 11B-2, 18-8.2, 18-8.3, and  18-8.5  and  adding
12    Sections 3-14.29, 18-8.6a, and 18-8.6b as follows:

13        (105 ILCS 5/2-3.25d) (from Ch. 122, par. 2-3.25d)
14        Sec.  2-3.25d.   Academic watch list.  Those schools that
15    are  not  meeting  the  standards  of  academic   performance
16    measured  by  the  State assessment of student performance as
17    specified by the State Board of Education may be placed on an
18    academic watch list established by the  State  Superintendent
19    of  Education after serving for 2 years on the State Board of
20    Education Early Academic Warning List and shall be subject to
21    an  on-site  visitation  to  determine  whether   extenuating
22    circumstances  exist as to why a school or schools should not
23    be  placed  on  an  academic  watch   list   by   the   State
24    Superintendent of Education.
25        A  school  district  that  has one or more schools on the
26    academic watch list shall submit a revised School Improvement
27    Plan or  amendments  thereto  setting  forth  the  district's
28    expectations  for  removing  each school in the district from
29    the academic watch list and for improving student performance
30    in that school. Districts operating under Article 34  of  The
31    School  Code  may submit the School Improvement Plan required
32    under Section 34-2.4.   If  any  district  submits  a  School
 
                            -36-     LRB093 04198 SJM 04242 b
 1    Improvement  Plan which exceeds 2 years in duration, the Plan
 2    shall contain provisions for evaluation and determination  as
 3    to   the   improvement   of  student  performance  or  school
 4    improvement after no later than 2 years. The  revised  School
 5    Improvement  Plan or amendments thereto shall be developed in
 6    consultation with the staff of the affected school  and  must
 7    be  approved by the local board of education and the school's
 8    local school council for districts operating under Article 34
 9    of the School Code. Revised School Improvement Plans must  be
10    submitted   for  approval  to  the  State  Superintendent  of
11    Education pursuant to rules and  regulations  promulgated  by
12    the State Board of Education.  The revised School Improvement
13    Plan   shall   address   specific,  measurable  outcomes  for
14    improving student performance so that such performance equals
15    or exceeds standards set for the school by the State Board of
16    Education.
17        A school or schools shall remain on  the  academic  watch
18    list  for  at  least  one  full  academic  year.  During each
19    academic year for which a school is  on  the  academic  watch
20    list  it  shall  continue to be evaluated and assessed by the
21    State Board of Education as to whether it is meeting outcomes
22    identified in its revised School Improvement Plan.
23        Any school district organized on or after  July  1,  2002
24    under  Article  7,  7A,  11A, or 11B of this Code is exempted
25    from the provisions of this Section for a period of  5  years
26    commencing on the effective date of the reorganization.
27        The  provisions  of  this  Section  are  subject  to  the
28    provisions of Section 2-3.25k.
29    (Source: P.A. 89-398, eff. 8-20-95; 89-698, eff. 1-14-97.)

30        (105 ILCS 5/3-14) (from Ch. 122, par. 3-14)
31        Sec.  3-14.   Duties  of  regional  superintendent.   The
32    regional  superintendent  of schools shall perform the duties
33    enumerated in the following Sections preceding  Section  3-15
 
                            -37-     LRB093 04198 SJM 04242 b
 1    Sections 3-14.1 through 3-14.25.
 2    (Source: P.A. 83-503.)

 3        (105 ILCS 5/3-14.29 new)
 4        Sec.   3-14.29.  Reorganization   feasibility  study.  To
 5    appoint a steering committee and serve as executive secretary
 6    in order to conduct a consolidation feasibility study for all
 7    school districts within the educational service  region.  The
 8    State Board of Education shall adopt rules to ensure that the
 9    study  is standard in statewide scope. The steering committee
10    shall have all of the following duties:
11             (1)  To prepare a plan  for  the  reorganization  of
12        school  districts in the region into administrative units
13        serving students in grades kindergarten through 12 with a
14        minimum of 250 students in grades 9 through 12.
15             (2)  To  submit  the  feasibility   study   to   the
16        administration,  school  boards, and State legislators of
17        the affected school districts.
18             (3)  To  facilitate  the  completion  of  additional
19        studies if needed.

20        (105 ILCS 5/7-1) (from Ch. 122, par. 7-1)
21        Sec. 7-1.  Districts in one educational service region  -
22    changing boundaries.
23        (a)  School district boundaries lying entirely within any
24    educational  service  region  may  be  changed by detachment,
25    annexation,  division  or  dissolution  or  any   combination
26    thereof  by  the  regional  board  of school trustees of such
27    region, or  by  the  State  Superintendent  of  Education  as
28    provided in subsection (l) of Section 7-6, when petitioned by
29    the  boards of each district affected or by a majority of the
30    registered voters in each district affected or by  two-thirds
31    of  the  registered  voters  in  any territory proposed to be
32    detached from one or more districts or in each of one or more
 
                            -38-     LRB093 04198 SJM 04242 b
 1    districts  proposed  to  be  annexed  to  another   district.
 2    Registered  voters  shall be determined by the official voter
 3    registration lists as of the date the petition is filed.   No
 4    signatures  shall  be  added  after  the date the petition is
 5    filed.   If  there  are  no  registered  voters  within   the
 6    territory proposed to be detached from one or more districts,
 7    then  the  petition  may  be  signed  by all of the owners of
 8    record of the real estate of the territory.   Notwithstanding
 9    any  other  provisions  of  this  Article,  if  pursuant to a
10    petition filed under this subsection all of the territory  of
11    a  school  district  is  to  be  annexed  to  another  school
12    district, any action by the regional board of school trustees
13    or State Superintendent of Education in granting or approving
14    the  petition  and  any  change in school district boundaries
15    pursuant to that action is  subject  to  and  the  change  in
16    school  district  boundaries  shall  not  be made except upon
17    approval at a  regular  scheduled  election,  in  the  manner
18    provided   by   Section  7-7.7,  of  a  proposition  for  the
19    annexation of all of the territory of that school district to
20    the other school district.
21        Each page of the circulated petition  shall  include  the
22    full  prayer  of  the  petition, and each signature contained
23    therein shall match the official signature and address of the
24    registered voters as recorded in the office of  the  election
25    authority   having   jurisdiction   over  the  county.   Each
26    petitioner shall also record the date of his  signing.   Each
27    page  of the petition shall be signed by a circulator who has
28    witnessed the signature of each petitioner on that page.  The
29    length of time for signatures to be valid, before  filing  of
30    the petition, shall not exceed 6 months.
31        Where  there  is  only one school building in an approved
32    operating district, the building and building site may not be
33    included in any detachment proceeding  unless  petitioned  by
34    two-thirds   of  the  registered  voters  within  the  entire
 
                            -39-     LRB093 04198 SJM 04242 b
 1    district wherein the school is located.
 2        (b)  Any elementary or high school district with  100  or
 3    more of its students residing upon territory located entirely
 4    within   a   military   base  or  installation  operated  and
 5    maintained by the government of the  United  States,  or  any
 6    unit   school  district  or  any  combination  of  the  above
 7    mentioned districts with 300 or more of its students residing
 8    upon territory located entirely within  a  military  base  or
 9    installation operated and maintained by the government of the
10    United States, shall, upon the filing with the regional board
11    of school trustees of a petition adopted by resolution of the
12    board  of education or a petition signed by a majority of the
13    registered  voters  residing  upon  such  military  base   or
14    installation, have all of the territory lying entirely within
15    such  military base or installation detached from such school
16    district,  and  a  new  school  district  comprised  of  such
17    territory shall be created.  The petition shall be filed with
18    and decided solely by the regional board of  school  trustees
19    of the region in which the regional superintendent of schools
20    has   supervision  of  the  school  district  affected.   The
21    regional board of school trustees shall have no authority  to
22    deny  the  detachment  and  creation of a new school district
23    requested in a proper petition filed under  this  subsection.
24    This  subsection  shall  apply only to those school districts
25    having a population of not fewer than 1,000 and not more than
26    500,000 residents, as ascertained by any special  or  general
27    census.
28        The new school district shall tuition its students to the
29    same  districts  that  its students were previously attending
30    and the districts from which the new  district  was  detached
31    shall continue to educate the students from the new district,
32    until  the  federal  government  provides other arrangements.
33    The federal government shall pay for the  education  of  such
34    children as required by Section 6 of Public Law 81-874.
 
                            -40-     LRB093 04198 SJM 04242 b
 1        If  a  school  district created under this subsection (b)
 2    has not elected a school board and has not become operational
 3    within 2 years  after  the  date  of  detachment,  then  this
 4    district is automatically dissolved and the territory of this
 5    district  reverts  to  the  school  district  from  which the
 6    territory was detached or  any  successor  district  thereto.
 7    Any  school  district created under this subsection (b) on or
 8    before September 1, 1996 that has not elected a school  board
 9    and  has  not  been  operational  since  September 1, 1996 is
10    automatically  dissolved  on  the  effective  date  of   this
11    amendatory  Act  of  1999,  and on this date the territory of
12    this district reverts to the school district from  which  the
13    territory  was  detached.  For the automatic dissolution of a
14    school  district  created  under  this  subsection  (b),  the
15    regional superintendent of schools who has supervision of the
16    school district from which the territory was  detached  shall
17    certify  to  the  regional  board of school trustees that the
18    school district created under this subsection  (b)  has  been
19    automatically dissolved.
20    (Source: P.A. 90-459, eff. 8-17-97; 91-460, eff. 8-6-99.)

21        (105 ILCS 5/7-2) (from Ch. 122, par. 7-2)
22        Sec.  7-2.  Districts  in two or more counties; Change of
23    boundaries.  Boundaries of existing  school  districts  lying
24    within  two  or  more  counties may be changed by detachment,
25    annexation, division, dissolution or any combination  thereof
26    by  the concurrent action of, taken following a joint hearing
27    before, the regional boards of school trustees of each region
28    affected. For purposes of this Section and  Section  7-6,  an
29    educational  service  region  shall  be deemed to be a region
30    affected if any portion of the territory which  the  petition
31    seeks to have detached from any school district is located in
32    the  region.  The  petition  may  be  by  the  boards of each
33    district affected, or by  a  majority  of  the  legal  voters
 
                            -41-     LRB093 04198 SJM 04242 b
 1    residing  in  each district affected, or by two-thirds of the
 2    legal  voters  residing  in  any  territory  proposed  to  be
 3    detached from one or more districts or in each of one or more
 4    districts proposed to be annexed to  another  district.   The
 5    original  petition  shall be filed with the regional board of
 6    school trustees of the region in which  the  territory  being
 7    detached  is  located  or if territory is being detached from
 8    more than one region then the petition shall  be  filed  with
 9    the  regional board of school trustees of the region in which
10    the regional superintendent has supervision over the greatest
11    portion of such territory.  A  certified  true  copy  of  the
12    petition  shall  be  filed  with the regional board of school
13    trustees of each other region affected.  Notwithstanding  any
14    other  provisions  of this Article, if pursuant to a petition
15    filed under this Section all of the  territory  of  a  school
16    district  is  to  be  annexed to another school district, any
17    action by the regional boards of school trustees in  granting
18    the  petition  and  any changes in school district boundaries
19    pursuant to that action is  subject  to  and  the  change  in
20    school  district  boundaries  shall  not  be made except upon
21    approval at a  regular  scheduled  election,  in  the  manner
22    provided   by   Section  7-7.7,  of  a  proposition  for  the
23    annexation of all of the territory of that school district to
24    the other school district.
25        The regional board of school trustees in whose region the
26    joint hearing on the original  petition  is  conducted  shall
27    send  a  certified true copy of the transcript of the hearing
28    to each other region affected. If there are no  legal  voters
29    residing  within  the  territory proposed to be detached from
30    one or more districts, then the petition may be signed by all
31    of the owners of record of the real estate of the  territory.
32    The  annexing district is that district to which territory is
33    proposed to be added.
34        Where there is only one school building  in  an  approved
 
                            -42-     LRB093 04198 SJM 04242 b
 1    operating district, the building and building site may not be
 2    included  in  any  detachment proceeding unless petitioned by
 3    two-thirds of the eligible voters within the entire  district
 4    wherein the school is located.
 5        After  September  23,  1983,  no  petition shall be filed
 6    under Sections 7-1 and 7-2 to  form  a  new  school  district
 7    under  this  Article except that such a petition may be filed
 8    under Section 7-1 to form a new  school  district  where  the
 9    boundaries  of  such  new school district lie entirely within
10    the boundaries of a military base  or  installation  operated
11    and maintained by the government of the United States.
12    (Source: P.A. 90-459, eff. 8-17-97.)

13        (105 ILCS 5/7-4) (from Ch. 122, par. 7-4)
14        Sec.  7-4.  Requirements  for  granting  petitions.    No
15    petition  shall  be granted under Sections 7-1 or 7-2 of this
16    Act:
17        (a)  If there  will  be  any  non-high  school  territory
18    resulting from the granting of the petition.
19        (b)  Unless  after  granting  the  petition any community
20    unit district, community  consolidated  district,  elementary
21    district  or  high  school  district  created  shall  have  a
22    population  of  at  least  2,000  and  an  equalized assessed
23    valuation of at least $6,000,000 based upon the last value as
24    equalized by the Department of Revenue  as  of  the  date  of
25    filing of the petition.
26        (c)  Unless  the territory within any district so created
27    or any district whose boundaries are affected by the granting
28    of a petition shall after the granting thereof be compact and
29    contiguous except as provided in Section  7-6  of  this  Act.
30    The fact that a district is divided by territory lying within
31    the  corporate limits of the city of Chicago shall not render
32    it non-compact or non-contiguous.
33        (d)  To create any school district with a  population  of
 
                            -43-     LRB093 04198 SJM 04242 b
 1    less  than  2,000 unless the State Board of Education and the
 2    regional superintendent of schools for the  region  in  which
 3    the  proposed district will lie shall certify to the regional
 4    board or boards of school trustees that the creation of  such
 5    new   district   will   not   interfere   with  the  ultimate
 6    reorganization of the territory of such proposed district  as
 7    a  part  of  a district having a population of 2,000 or more.
 8    Notwithstanding any other provisions  of  this  Article,  the
 9    granting  or  approval by a regional board or regional boards
10    of  school  trustees  or  by  the  State  Superintendent   of
11    Education  of  a  petition  that  under  subsection  (b-5) of
12    Section 7-6 is  required  to  request  the  submission  of  a
13    proposition  at  a regular scheduled election for the purpose
14    of voting for or against the  annexation   of  the  territory
15    described in the petition to the school district proposing to
16    annex  that territory is subject to, and any change in school
17    district boundaries pursuant to the granting of the  petition
18    shall not be made except upon, approval of the proposition at
19    the election in the manner provided by Section 7-7.7.
20    (Source: P.A. 89-397, eff. 8-20-95; 90-459, eff. 8-17-97.)

21        (105 ILCS 5/7-6) (from Ch. 122, par. 7-6)
22        Sec. 7-6.  Petition filing; Notice; Hearing; Decision.
23        (a)  Upon  the filing of a petition with the secretary of
24    the regional board of school trustees under the provisions of
25    Section 7-1 or 7-2 of this Act the secretary  shall  cause  a
26    copy  of  such  petition  to  be  given  to each board of any
27    district involved in the proposed boundary change  and  shall
28    cause  a  notice  thereof to be published once in a newspaper
29    having general circulation within the area of  the  territory
30    described   in  the  petition  for  the  proposed  change  of
31    boundaries.
32        (b)  When  a  joint  hearing  is   required   under   the
33    provisions  of  Section 7-2, the secretary also shall cause a
 
                            -44-     LRB093 04198 SJM 04242 b
 1    copy of the notice to be sent to the regional board of school
 2    trustees  of  each  region  affected.   Notwithstanding   the
 3    foregoing provisions of this Section, if the secretary of the
 4    regional  board  of  school  trustees with whom a petition is
 5    filed under Section 7-2  fails,  within  30  days  after  the
 6    filing  of  such  petition,  to  cause  notice  thereof to be
 7    published and sent as required  by  this  Section,  then  the
 8    secretary  of  the  regional  board of school trustees of any
 9    other region affected may cause the  required  notice  to  be
10    published  and sent, and the joint hearing may be held in any
11    region affected as provided in the notice so published.
12        (b-5)  (Blank). If a petition filed under subsection  (a)
13    of Section 7-1 or under Section 7-2 proposes to annex all the
14    territory  of  a  school district to another school district,
15    the petition shall request the submission of a proposition at
16    a regular scheduled election for the purpose of voting for or
17    against the annexation of  the  territory  described  in  the
18    petition  to  the  school  district  proposing  to annex that
19    territory.  No petition filed or  election  held  under  this
20    Article  shall  be  null  and void, invalidated, or deemed in
21    noncompliance with the Election Code because of a failure  to
22    publish  a  notice with respect to the petition or referendum
23    as required under subsection (g) of Section 28-2 of that Code
24    for petitions that  are  not  filed  under  this  Article  or
25    Article 7A, 11A, 11B, or 11D of the School Code.
26        (c)  When a petition contains more than 10 signatures the
27    petition shall designate a committee of 10 of the petitioners
28    as  attorney  in  fact for all petitioners, any 7 of whom may
29    make binding stipulations on behalf of all petitioners as  to
30    any question with respect to the petition or hearing or joint
31    hearing,  and  the  regional  board  of  school  trustees, or
32    regional boards of  school  trustees  in  cases  of  a  joint
33    hearing  may  accept  such stipulation in lieu of evidence or
34    proof of the matter stipulated. The committee of  petitioners
 
                            -45-     LRB093 04198 SJM 04242 b
 1    shall  have  the  same  power  to stipulate to accountings or
 2    waiver  thereof  between  school  districts;   however,   the
 3    regional  board  of  school  trustees,  or regional boards of
 4    school trustees in cases of a joint  hearing  may  refuse  to
 5    accept such stipulation. Those designated as the committee of
 6    10  shall  serve  in  that  capacity  until  such time as the
 7    regional superintendent of schools or  the  committee  of  10
 8    determines  that,  because of death, resignation, transfer of
 9    residency from the territory,  or  failure  to  qualify,  the
10    office  of  a  particular  member  of  the committee of 10 is
11    vacant.   Upon  determination  that  a  vacancy  exists,  the
12    remaining members shall appoint  a  petitioner  to  fill  the
13    designated  vacancy  on the committee of 10.  The appointment
14    of any new members by the committee of 10 shall be made by  a
15    simple majority vote of the remaining designated members.
16        (d)  The  petition  may  be  amended  to  withdraw not to
17    exceed a total of 10% of the territory in the petition at any
18    time prior to the hearing or joint hearing; provided that the
19    petition shall after amendment comply with  the  requirements
20    as  to  the  number  of  signatures  required  on an original
21    petition.
22        (e)  The petitioners shall pay the expenses of publishing
23    the notice and of any transcript  taken  at  the  hearing  or
24    joint  hearing; and in case of an appeal from the decision of
25    the regional board of school trustees, or regional boards  of
26    school  trustees  in  cases  of  a  joint  hearing,  or State
27    Superintendent  of  Education  in  cases   determined   under
28    subsection  (l) of this Section, the appellants shall pay the
29    cost of preparing the record for appeal.
30        (f)  The notice shall state when the petition was  filed,
31    the  description of the territory, the prayer of the petition
32    and the return day on which the hearing or joint hearing upon
33    the petition will be held which shall not be more than 15 nor
34    less than 10 days after the publication of notice.
 
                            -46-     LRB093 04198 SJM 04242 b
 1        (g)  On such return day or on a day to which the regional
 2    board of  school  trustees,  or  regional  boards  of  school
 3    trustees  in  cases  of  a  joint  hearing shall continue the
 4    hearing  or  joint  hearing  the  regional  board  of  school
 5    trustees, or regional boards of school trustees in cases of a
 6    joint hearing shall hear the petition  but  may  adjourn  the
 7    hearing  or  joint  hearing from time to time or may continue
 8    the matter for want of sufficient notice or other good cause.
 9        (h)  Prior to the hearing or joint hearing the  secretary
10    of  the regional board of school trustees shall submit to the
11    regional board of school  trustees,  or  regional  boards  of
12    school  trustees in cases of a joint hearing maps showing the
13    districts  involved,  a  written  report  of  financial   and
14    educational conditions of districts involved and the probable
15    effect   of  the  proposed  changes.  The  reports  and  maps
16    submitted  shall  be  made  a  part  of  the  record  of  the
17    proceedings of the regional  board  of  school  trustees,  or
18    regional  boards  of  school  trustees  in  cases  of a joint
19    hearing. A copy of the report and  maps  submitted  shall  be
20    sent  by  the  secretary  of  the  regional  board  of school
21    trustees to each board of the districts  involved,  not  less
22    than  5 days prior to the day upon which the hearing or joint
23    hearing is to be held.
24        (i)  The regional board of school trustees,  or  regional
25    boards  of  school trustees in cases of a joint hearing shall
26    hear evidence as to the school needs and  conditions  of  the
27    territory  in  the area within and adjacent thereto and as to
28    the ability of the districts affected to meet  the  standards
29    of recognition as prescribed by the State Board of Education,
30    and  shall  take into consideration the division of funds and
31    assets which will result from the change  of  boundaries  and
32    shall  determine  whether  it is to the best interests of the
33    schools of the area and the educational welfare of the pupils
34    that such change  in  boundaries  be  granted,  and  in  case
 
                            -47-     LRB093 04198 SJM 04242 b
 1    non-high  school  territory  is contained in the petition the
 2    normal high school attendance pattern of the  children  shall
 3    be taken into consideration. If the non-high school territory
 4    overlies an elementary district, a part of which is in a high
 5    school  district,  such territory may be annexed to such high
 6    school district even though not contiguous to the high school
 7    district. However, upon resolution by the regional  board  of
 8    school  trustees,  or  regional  boards of school trustees in
 9    cases of a joint hearing the secretary or secretaries thereof
10    shall conduct the hearing or joint hearing upon any  boundary
11    petition  and  present  a  transcript  of such hearing to the
12    trustees who shall base their decision upon  the  transcript,
13    maps and information and any presentation of counsel.
14        (j)  At  the hearing or joint hearing any resident of the
15    territory described in the petition or any  resident  in  any
16    district  affected  by  the proposed change of boundaries may
17    appear in person or by an attorney in support of the petition
18    or to object to the granting of the petition and may  present
19    evidence in support of his position.
20        (k)  At the conclusion of the hearing, other than a joint
21    hearing, the regional superintendent of schools as ex officio
22    member  of the regional board of school trustees shall within
23    30 days  enter  an  order  either  granting  or  denying  the
24    petition  and  shall deliver to the committee of petitioners,
25    if any, and any  person  who  has  filed  his  appearance  in
26    writing  at  the hearing and any attorney who appears for any
27    person and any objector who testifies at the hearing and  the
28    regional  superintendent  of  schools a certified copy of its
29    order.
30        (l)  Notwithstanding the  foregoing  provisions  of  this
31    Section,  if  within  9  months after a petition is submitted
32    under the provisions of  Section  7-1  the  petition  is  not
33    approved  or  denied by the regional board of school trustees
34    and the order approving or denying that petition entered  and
 
                            -48-     LRB093 04198 SJM 04242 b
 1    a copy thereof served as provided in this Section, the school
 2    boards  or  registered  voters of the districts affected that
 3    submitted the  petition  (or  the  committee  of  10,  or  an
 4    attorney acting on its behalf, if designated in the petition)
 5    may  submit  a  copy  of  the  petition directly to the State
 6    Superintendent of Education for approval or denial.  The copy
 7    of the petition as so submitted shall  be  accompanied  by  a
 8    record of all proceedings had with respect to the petition up
 9    to  the  time  the  copy  of the petition is submitted to the
10    State Superintendent of Education (including a  copy  of  any
11    notice  given or published, any certificate or other proof of
12    publication, copies of any maps  or  written  report  of  the
13    financial  and educational conditions of the school districts
14    affected if furnished by the secretary of the regional  board
15    of  school trustees, copies of any amendments to the petition
16    and stipulations made, accepted or refused, a  transcript  of
17    any hearing or part of a hearing held, continued or adjourned
18    on  the  petition, and any orders entered with respect to the
19    petition or any hearing held thereon).   The  school  boards,
20    registered  voters or committee of 10 submitting the petition
21    and record of proceedings  to  the  State  Superintendent  of
22    Education shall give written notice by certified mail, return
23    receipt  requested  to  the regional board of school trustees
24    and to the secretary of that board that the petition has been
25    submitted  to  the  State  Superintendent  of  Education  for
26    approval or denial, and shall furnish a copy of the notice so
27    given to the State Superintendent of Education.  The cost  of
28    assembling  the  record  of proceedings for submission to the
29    State Superintendent of Education shall be the responsibility
30    of the school boards, registered voters or  committee  of  10
31    that  submits  the  petition and record of proceedings to the
32    State  Superintendent  of  Education.   When  a  petition  is
33    submitted  to  the  State  Superintendent  of  Education   in
34    accordance with the provisions of this paragraph:
 
                            -49-     LRB093 04198 SJM 04242 b
 1             (1)  The regional board of school trustees loses all
 2        jurisdiction  over the petition and shall have no further
 3        authority to hear, approve, deny or  otherwise  act  with
 4        respect to the petition.
 5             (2)  All  jurisdiction  over  the  petition  and the
 6        right and duty to hear, approve, deny  or  otherwise  act
 7        with  respect to the petition is transferred to and shall
 8        be assumed and exercised by the State  Superintendent  of
 9        Education.
10             (3)  The State Superintendent of Education shall not
11        be required to repeat any proceedings that were conducted
12        in  accordance  with the provisions of this Section prior
13        to the time jurisdiction over the petition is transferred
14        to him, but the State Superintendent of  Education  shall
15        be  required  to give and publish any notices and hold or
16        complete any  hearings  that  were  not  given,  held  or
17        completed by the regional board of school trustees or its
18        secretary  as  required by this Section prior to the time
19        jurisdiction over the  petition  is  transferred  to  the
20        State Superintendent of Education.
21             (4)  If  so  directed by the State Superintendent of
22        Education, the regional superintendent of  schools  shall
23        submit  to  the  State Superintendent of Education and to
24        such  school  boards  as  the  State  Superintendent   of
25        Education  shall  prescribe  accurate  maps and a written
26        report of the financial and educational conditions of the
27        districts  affected  and  the  probable  effect  of   the
28        proposed boundary changes.
29             (5)  The   State  Superintendent  is  authorized  to
30        conduct further hearings, or appoint a hearing officer to
31        conduct further hearings, on the petition even  though  a
32        hearing  thereon  was  held  as  provided in this Section
33        prior to the  time  jurisdiction  over  the  petition  is
34        transferred to the State Superintendent of Education.
 
                            -50-     LRB093 04198 SJM 04242 b
 1             (6)  The  State  Superintendent  of Education or the
 2        hearing officer shall hear evidence and approve  or  deny
 3        the  petition and shall enter an order to that effect and
 4        deliver and serve the same as required in other cases  to
 5        be  done by the regional board of school trustees and the
 6        regional superintendent  of  schools  as  an  ex  officio
 7        member of that board.
 8        (m)  Within  10  days  after  the  conclusion  of a joint
 9    hearing required under the provisions of  Section  7-2,  each
10    regional  board  of  school  trustees shall meet together and
11    render a decision with regard to the  joint  hearing  on  the
12    petition.   If the regional boards of school trustees fail to
13    enter a joint order either granting or denying the  petition,
14    the  regional  superintendent  of schools for the educational
15    service region in which the joint hearing is held shall enter
16    an order denying the petition, and within 30 days  after  the
17    conclusion  of  the joint hearing shall deliver a copy of the
18    order denying the petition to the regional boards  of  school
19    trustees  of  each  region  affected,  to  the  committee  of
20    petitioners,  if  any,  to  any  person  who  has  filed  his
21    appearance  in writing at the hearing and to any attorney who
22    appears for any person at the joint hearing.  If the regional
23    boards of school trustees enter a joint order either granting
24    or denying  the  petition,  the  regional  superintendent  of
25    schools for the educational service region in which the joint
26    hearing  is  held  shall, within 30 days of the conclusion of
27    the hearing, deliver a copy of the joint order to those  same
28    committees  and  persons as are entitled to receive copies of
29    the  regional  superintendent's  order  in  cases  where  the
30    regional boards of school trustees have  failed  to  enter  a
31    joint order.
32        (n)  Within  10 days after service of a copy of the order
33    granting or denying the petition, any person  so  served  may
34    petition  for  a  rehearing  and, upon sufficient cause being
 
                            -51-     LRB093 04198 SJM 04242 b
 1    shown, a rehearing may be granted. The filing of  a  petition
 2    for  rehearing  shall  operate as a stay of enforcement until
 3    the regional board of school trustees, or regional boards  of
 4    school  trustees  in  cases  of  a  joint  hearing,  or State
 5    Superintendent  of  Education  in  cases   determined   under
 6    subsection  (l) of this Section enter the final order on such
 7    petition for rehearing.
 8        (o)  (Blank). If a petition filed under subsection (a) of
 9    Section 7-1 or  under  Section  7-2  is  required  under  the
10    provisions of subsection (b-5) of this Section 7-6 to request
11    submission  of  a proposition at a regular scheduled election
12    for the purpose of voting for or against  the  annexation  of
13    the  territory  described  in  the  petition  to  the  school
14    district  proposing  to  annex  that  territory,  and  if the
15    petition is granted or approved  by  the  regional  board  or
16    regional   boards   of   school  trustees  or  by  the  State
17    Superintendent of Education, the proposition shall be  placed
18    on the ballot at the next regular scheduled election.
19    (Source: P.A. 90-459, eff. 8-17-97.)

20        (105 ILCS 5/7-9) (from Ch. 122, par. 7-9)
21        Sec. 7-9. Effective date of change. In case a petition is
22    filed  for  the creation of or the change of boundaries of or
23    for an election to vote upon a  proposition  of  creating  or
24    annexing  territory  to  a school district after August 1, as
25    provided in this Article, and the change is  granted  or  the
26    election  carries,  and  no appeal is taken such change shall
27    become effective after the time for appeal has  run  for  the
28    purpose  of  all  elections;  however,  the  change shall not
29    affect  the  administration  of  the  schools  until  July  1
30    following the date the petition is granted or upon which  the
31    election  is  held  and the school boards of the districts as
32    they existed prior to the  change  shall  exercise  the  same
33    power  and  authority  over  such  territory until such date;
 
                            -52-     LRB093 04198 SJM 04242 b
 1    however, new districts shall be  permitted  to  organize  and
 2    elect  officers  within  the  time  prescribed by the general
 3    election law.
 4        In the event that the granting of a petition  has  become
 5    final,  either  through failure to seek Administrative Review
 6    or by the final decision of a court on review, the change  in
 7    boundaries  shall become effective forthwith. However, if the
 8    granting of the petition becomes final  between  September  1
 9    and June 30 of any year, the administration of and attendance
10    at the schools shall not be affected until the following July
11    1,  when  the change in boundaries shall become effective for
12    all purposes. After the granting of  a  petition  has  become
13    final,  the  date  when the change shall become effective for
14    purposes of administration and attendance may be  accelerated
15    or  postponed  by stipulation of each of the school boards of
16    each district affected and approved by the regional board  of
17    school trustees or by the board of a special charter district
18    with which the original petition is required to be filed.
19    (Source: P.A. 90-459, eff. 8-17-97.)

20        (105 ILCS 5/11A-2) (from Ch. 122, par. 11A-2)
21        Sec.  11A-2.   Organization  of community unit districts;
22    territorial requirement.   (1)  Any  contiguous  and  compact
23    territory   of   at   least  $12,000,000  equalized  assessed
24    valuation and having a population of not less than 4,000  and
25    not  more  than  500,000, no part of which is included within
26    any unit district, may be organized  into  a  community  unit
27    school   district  as  provided  in  this  Article;  (2)  the
28    territory of 2 or more entire unit school districts that  are
29    contiguous  to each other and the territory of which taken as
30    a whole is compact may be organized  into  a  community  unit
31    school  district  as  provided  in  this  Article; or (3) the
32    territory of one or more entire unit  school  districts  that
33    are  contiguous to each other plus any contiguous and compact
 
                            -53-     LRB093 04198 SJM 04242 b
 1    territory, no part of  which  is  included  within  any  unit
 2    district,  and  the  territory  of  which taken as a whole is
 3    compact  may  be  organized  into  a  community  unit  school
 4    district as provided in this Article; however, a petition  or
 5    petitions  may  be filed hereunder proposing to divide a unit
 6    school district into 2 or more parts and proposing to include
 7    all of such parts in 2 or more community unit districts.   As
 8    used in this Section, a unit school district includes, but is
 9    not limited to, a special charter unit school district.
10        The  territory of any high school district and fewer than
11    all of the elementary school districts  included  within  the
12    high  school  district may be organized into a community unit
13    school district. Any  such  elementary  school  district  not
14    participating   in   the   reorganization   shall  remain  an
15    elementary  school  district,  and  the  territory  of   that
16    elementary  school  district  shall  be designated a non-high
17    school district pursuant to Article 12 of this Code.
18        The regional superintendent shall not accept  for  filing
19    hereunder  any  petition which includes therein any territory
20    already included  as  part  of  the  territory  described  in
21    another  petition  filed  hereunder.   Hearings on a petition
22    filed hereunder shall not be commenced so long as any part of
23    the  territory  described  therein  shall  include  territory
24    described, whether by  amendment  or  otherwise,  in  another
25    petition  filed hereunder.  A petition may be filed hereunder
26    which contains  less  than  the  required  minimum  equalized
27    assessed  valuation  or population requirements provided that
28    such a  petition  shall  not  be  approved  by  the  regional
29    superintendent   and   State   Superintendent  unless  it  is
30    determined:  (1)  that  there  is  a  compelling  reason  for
31    granting the petition; (2) that the territory involved cannot
32    currently  be organized as part of a petition which meets the
33    minimum requirements; (3) that the granting of  the  petition
34    will  not  interfere  with the ultimate reorganization of the
 
                            -54-     LRB093 04198 SJM 04242 b
 1    territory into a school  district  which  meets  the  minimum
 2    requirements; (4) that the granting of the petition is in the
 3    best  educational  interests  of the pupils affected; and (5)
 4    that the granting of the petition is  financially  beneficial
 5    to the affected school districts.
 6    (Source: P.A. 88-555, eff. 7-27-94.)

 7        (105 ILCS 5/11A-3) (from Ch. 122, par. 11A-3)
 8        Sec.  11A-3.  Petition filing; notice; hearing; decision.
 9    A petition shall be filed with the Regional Superintendent of
10    the region in which the territory described in  the  petition
11    or  that  part  of the territory with the greater per cent of
12    equalized assessed valuation is situated, agreed to signed by
13    the school boards of all of the affected school districts (by
14    resolution of each school board) or signed by at least 30% of
15    the registered voters in each  affected  school  district  at
16    least  200  voters  residing  in  at  least 3/4 of the school
17    districts or parts of districts and residing in the territory
18    included in the petition, or the petition may be filed by the
19    board of education of each of the school districts wholly  or
20    partially   included   in  the  territory  described  in  the
21    petition. A petition that  is  not  filed  by  the  board  of
22    education of each of the school districts wholly or partially
23    included  in  the  territory  described  in the petition must
24    contain signatures from 50 legal resident voters from each of
25    the school districts wholly  or  partially  included  in  the
26    territory  described in the petition or from 10% of the legal
27    resident voters from each of the school districts  wholly  or
28    partially   included   in  the  territory  described  in  the
29    petition, whichever is lesser.  Provided,  however,  that  no
30    petition  filed, or election held under this Article shall be
31    null or void or invalidated or deemed in  noncompliance  with
32    the  Election  Code  for the failure of any person or persons
33    seeking the creation of a new school  district  hereunder  to
 
                            -55-     LRB093 04198 SJM 04242 b
 1    publish  a  notice  of  intention to file such petition or to
 2    attach an affidavit attesting to  the  publication  of   such
 3    notice  to  such petition as required under subsection (g) of
 4    Section 28-2 of the Election Code for petitions that are  not
 5    filed  under Article 7A, 11A, 11B, or 11D of the School Code.
 6    The  petition  shall  (1)  request  the  submission  of   the
 7    proposition  at  a regular scheduled election for the purpose
 8    of voting for or against the  establishment  of  a  community
 9    unit  school  district  in  the  territory;  (2) describe the
10    territory comprising the proposed district; (3) set forth the
11    maximum tax rates for educational, operations and maintenance
12    and the purchase and improvements of  school  grounds,  pupil
13    transportation,  and  fire prevention and safety purposes the
14    proposed district  shall  be  authorized  to  levy;  and  (4)
15    designate a committee of 10 of the petitioners, any 7 of whom
16    may  at any time, prior to the final decision of the Regional
17    Superintendent, amend the petition in  all  respects  (except
18    that  there  may  not be an increase or decrease of more than
19    25%  of  the  territory  to  be  included  in  the   proposed
20    district), and may make binding stipulations on behalf of all
21    petitioners  as  to any question with respect to the petition
22    or hearing and the Regional Superintendent  may  accept  such
23    stipulation  instead  of  evidence  or  proof  of  the matter
24    stipulated, which committee of petitioners may  stipulate  to
25    accountings  or  waiver  thereof  between  school  districts;
26    however,  the  Regional  Superintendent  may refuse to accept
27    such stipulation; those designated as the  Committee  of  Ten
28    shall  serve in such capacity until such time as the Regional
29    Superintendent  should  determine  that,  because  of  death,
30    resignation,  transfer  of  residency  from  the   territory,
31    failure  to  qualify or for any other reason, the office of a
32    particular member of the Committee is vacant.  Failure  of  a
33    person designated as a member of the Committee of Ten to sign
34    the  petition, whether filed prior or subsequent to September
 
                            -56-     LRB093 04198 SJM 04242 b
 1    23, 1983 (the effective  date  of  P.A.  83-686),  shall  not
 2    disqualify  such  person  as a member thereof and such person
 3    may sign the petition at any time prior to final  disposition
 4    of the petition and the conclusion of the proceedings to form
 5    a  unit  district, including all litigation pertaining to the
 6    petition or proceedings.  Upon determination by the  Regional
 7    Superintendent that such vacancies exist, he shall so declare
 8    such  vacancies  and  shall  notify  the remaining members to
 9    appoint a petitioner or petitioners, as the case may  be,  to
10    fill  the  vacancies  in  the Committee of Ten so designated.
11    Such appointment by the Committee of  Ten  of  any  such  new
12    membership  shall  be  made  by a simple majority vote of the
13    designated remaining members.  The  Committee  of  Ten  shall
14    act,  unless  otherwise herein specified, by majority vote of
15    the membership.  The Committee of Ten may voluntarily dismiss
16    their petition at any time before the final decision  of  the
17    Regional Superintendent.
18        The petition may request that the referendum at which the
19    proposition  is  submitted  for  the purpose of voting for or
20    against the establishment of a community unit school district
21    include as part of the  proposition  the  election  of  board
22    members  by  school  board district rather than at large. Any
23    petition requesting the election of board members by district
24    shall divide the proposed school district into 7 school board
25    districts, each of which must be compact and  contiguous  and
26    substantially  equal in population to each other school board
27    district. Any election  of  board  members  by  school  board
28    district  shall proceed under the supervision of the Regional
29    Superintendent as provided in Section 11A-8. The Committee of
30    Ten  may  amend  any  petition  approved  by   the   Regional
31    Superintendent and State Superintendent of Education prior to
32    July  29,  1988  to  include  as  part of the proposition the
33    election of board members by district as provided above.  The
34    Regional Superintendent  shall,  following  approval  by  the
 
                            -57-     LRB093 04198 SJM 04242 b
 1    State  Superintendent of Education, submit the proposition as
 2    provided in the amended petition to the appropriate  election
 3    authorities.
 4        The  petition  may  request  that  if  the proposition to
 5    create a community unit school district is submitted  to  the
 6    voters  at the consolidated election which occurs in April of
 7    odd-numbered years, at the  general  primary  election  which
 8    occurs  in  March  of even-numbered years, at the nonpartisan
 9    election which occurs in November of odd-numbered  years,  or
10    at   the   general  election  which  occurs  in  November  of
11    even-numbered years, that at that same election  a  board  of
12    education  be  elected  on  a separate ballot to serve as the
13    board  of  education  of  the  proposed  new  district.   Any
14    election of board members at the same election at  which  the
15    proposition to create the district to be served by that board
16    is   submitted   to   the  voters  shall  proceed  under  the
17    supervision of the Regional  Superintendent  as  provided  in
18    Section 11A-8.
19        The  petition  may  also  request  that the referendum at
20    which the proposition shall be submitted for the  purpose  of
21    voting  for  or against the establishment of a community unit
22    school district in the territory include a proposition  on  a
23    separate  ballot  authorizing  the  issuance  of bonds by the
24    district when organized, in accordance with  this  Act.   The
25    principal  amount  of  the bonds and the purposes of issuance
26    shall be stated in such  petition  and  in  all  notices  and
27    propositions submitted thereunder.
28        A  petition  to form a new community unit school district
29    from the entire territory of 2 or more school  districts  may
30    also  request  that  the bonded indebtedness of each existing
31    school district be assumed by the entire territory of the new
32    community unit school district  in  the  manner  provided  by
33    subsection (b) of Section 11A-12.
34        Upon   the   filing  of  a  petition  with  the  Regional
 
                            -58-     LRB093 04198 SJM 04242 b
 1    Superintendent of the Region in which the greater portion  of
 2    the  equalized  assessed valuation of the territory described
 3    in the petition lies, the Regional Superintendent shall cause
 4    a copy of such petition to be given  to  each  board  of  any
 5    district  involved  in  the  proposed  formation  of  the new
 6    district and shall cause a notice thereof to be published  at
 7    least  once  each week for 3 successive weeks in at least one
 8    newspaper having general circulation within the area  of  the
 9    territory  of  the proposed district.  The notice shall state
10    when and to whom the petition was presented, the  description
11    of  the  territory  of the proposed district, if requested in
12    the petition a statement of the proposition  to  issue  bonds
13    and indicating the amount and purpose thereof, and the day on
14    which  the  hearing upon the petition will be held.  Not more
15    than 30 days after the publication  of  notice  the  Regional
16    Superintendent shall hold a hearing on the petition.
17        Upon  the  Regional  Superintendent  determining that the
18    petition, as filed or amended, is proper and is in compliance
19    with any applicable petition requirements set  forth  in  the
20    Election  Code, he shall hear evidence as to the school needs
21    and conditions of the territory and in the  area  within  and
22    adjacent thereto and take into  consideration the division of
23    funds  and  assets which will result from the organization of
24    the district, and shall determine whether it is for the  best
25    interests  of  the  schools  of  the area and the educational
26    welfare  of  the  pupils  therein  that  such   district   be
27    organized.
28        At  the hearing, any resident in the proposed district or
29    any district affected thereby may appear in  support  of  the
30    petition  or  to object thereto.  The Regional Superintendent
31    may adjourn the hearing from time to time.   Within  14  days
32    after   the   conclusion   of   the   hearing   the  Regional
33    Superintendent shall make  a  decision  either  approving  or
34    denying   the  petition.  Upon  the  Regional  Superintendent
 
                            -59-     LRB093 04198 SJM 04242 b
 1    approving  or  denying  the  petition  he  shall  submit  the
 2    petition  and   all   evidence   submitted   to   the   State
 3    Superintendent  of  Education who shall, within 30 days after
 4    the decision of the Regional Superintendent, approve or  deny
 5    the petition according to the following criteria:
 6        He  shall review the entire record of the proceedings had
 7    before the Regional Superintendent, including the  transcript
 8    of  said  proceedings,  and  based  upon a review of the same
 9    shall take into consideration:
10             (1)  whether  the  proposed   district   will   have
11        sufficient   size   (pupil   enrollment)   and  financial
12        resources (assessed valuation) to provide and maintain  a
13        recognized  educational  program  for grades kindergarten
14        through 12;
15             (2)  whether the proposed school district is for the
16        best interests  of  the  schools  of  the  area  and  the
17        educational welfare of the pupils therein; and
18             (3)  whether  the  territory for the proposed school
19        district is compact and contiguous for school purposes.
20        If the  State  Superintendent  of  Education  denies  the
21    petition the reasons for such denial shall be communicated to
22    appropriate    groups,    agencies    or    instrumentalities
23    representing the petitioners.
24        If a majority of the voters in at least 2  community unit
25    school  districts  have  voted  in  favor of a proposition to
26    create  a  new  community  unit  school  district,  but   the
27    proposition was not approved under the standards set forth in
28    Section  11A-8  of  the  School Code, then the members of the
29    Committee  of  Ten  shall  submit  an  amended  petition  for
30    consolidation to the boards of education of  those  districts
31    as  long as the territory involved is compact and contiguous.
32    The petition submitted to the boards of  education  shall  be
33    identical  in  form  and substance to the petition previously
34    approved by the Regional Superintendent of Schools  with  the
 
                            -60-     LRB093 04198 SJM 04242 b
 1    sole  exception  that  the  territory comprising the proposed
 2    district  shall  be  amended  to  include  the  compact   and
 3    contiguous territory of those community unit school districts
 4    in  which  a  majority  of  the  voters voted in favor of the
 5    proposal.
 6        Each  board  of  education  to  which  the  petition   is
 7    submitted  shall  meet and vote to approve or not approve the
 8    amended petition no more than 30 days after it has been filed
 9    with the  board.   The  Regional  Superintendent  shall  make
10    available  to  each  board of education with which a petition
11    has been filed all transcripts and records  of  the  previous
12    petition  hearing.   The  boards  of  education shall, by the
13    appropriate resolution, approve  or  disapprove  the  amended
14    petition.   No  board  of  education  may  approve an amended
15    petition unless it first finds that the  territory  described
16    in the petition is compact and contiguous.
17        If  a  majority of the members of each board of education
18    to whom a petition is submitted votes in favor of the amended
19    petition, the approved petition shall be transmitted  by  the
20    secretary   of   each   board   of  education  to  the  State
21    Superintendent of Education who  shall,  within  30  days  of
22    receipt,  approve  or  deny the amended petition based on the
23    criteria stated in this  Section  which  governed  the  State
24    Superintendent  of  Education  in  his  initial review of the
25    petition.   If  approved  by  the  State  Superintendent   of
26    Education,  the petition shall be placed on the ballot at the
27    next regularly scheduled election.
28    (Source: P.A. 87-10; 87-185; 87-839;  87-1270;  88-555,  eff.
29    7-27-94.)

30        (105 ILCS 5/11A-8) (from Ch. 122, par. 11A-8)
31        Sec. 11A-8.  Passage requirements.
32        (a)  Except  as  otherwise provided by Section 11A-7, the
33    proposition to create a community unit school district  shall
 
                            -61-     LRB093 04198 SJM 04242 b
 1    be  submitted  only  to  the  voters  of  the territory which
 2    comprises the proposed community unit school district, and if
 3    a majority of the voters  in  each  of  the  affected  school
 4    districts  voting  at  such  election  vote  in  favor of the
 5    establishment of such community  unit  school  district,  the
 6    proposition  shall be deemed to have passed. If a majority of
 7    the electors voting at the election  vote  in  favor  of  the
 8    establishment  of  a  community  unit  school  district,  the
 9    proposition  shall be deemed to have passed. Unless the board
10    of education of a  new  community  unit  school  district  is
11    elected  at  the  same  election  at  which  the  proposition
12    establishing  that  district  is  deemed  to have passed, the
13    regional superintendent of schools shall order an election to
14    be held on the next regularly scheduled election date for the
15    purpose of electing a board of education for  that  district.
16    In  either  event,  the  board of education elected for a new
17    community unit school district  created  under  this  Article
18    shall  consist  of 7 members who shall have the terms and the
19    powers and duties of school boards as defined in  Article  10
20    of  this Act.  Nomination papers filed under this Section are
21    not valid unless the candidate named therein files  with  the
22    regional  superintendent  a  receipt  from  the  county clerk
23    showing that the candidate has filed a statement of  economic
24    interests  as  required  by  the Illinois Governmental Ethics
25    Act.  Such statement shall  be  so  filed  either  previously
26    during  the calendar year in which his nomination papers were
27    filed or within the  period  for  the  filing  of  nomination
28    papers  in  accordance  with  the  general election law.  The
29    regional superintendent shall  perform  the  election  duties
30    assigned  by  law to the secretary of a school board for such
31    election, and  shall  certify  the  officers  and  candidates
32    therefor pursuant to the general election law.
33        (b)  Except  as otherwise provided in subsection (c), for
34    school districts  formed  before  January  1,  1975,  if  the
 
                            -62-     LRB093 04198 SJM 04242 b
 1    territory  of  such  district is greater than 2 congressional
 2    townships or 72 square miles, then  not  more  than  3  board
 3    members  may be selected from any one congressional township,
 4    but congressional townships  of  less  than  100  inhabitants
 5    shall  not  be  considered  for the purpose of such mandatory
 6    board representation, and in any such community unit district
 7    where at least 75% but not more than 90% of the population is
 8    in one  congressional  township  4  board  members  shall  be
 9    selected therefrom and 3 board members shall be selected from
10    the  rest  of  the  district,  but in any such community unit
11    district where more than 90% of  the  population  is  in  one
12    congressional township all board members may be selected from
13    one   or  more  congressional  townships;  and  whenever  the
14    territory of any community unit district shall consist of not
15    more than 2 congressional townships or 72 square  miles,  but
16    shall  consist of more than one congressional township, or 36
17    square miles, outside of the corporate limits  of  any  city,
18    village  or incorporated town within the school district, not
19    more than 5 board members shall be selected  from  any  city,
20    village or incorporated town in such school district.
21        (c)  The provisions of subsection (b) for mandatory board
22    representation  shall  no  longer  apply  to a community unit
23    school district formed prior to  January  1,  1975,  and  the
24    members  of  the board of education shall be elected at large
25    from within that school district and without  restriction  by
26    area  of  residence  within  the  district  if  both  of  the
27    following conditions are met with respect to that district:
28             (1)  A proposition for the election of board members
29        at  large  and  without  restriction by area of residence
30        within the district rather than in  accordance  with  the
31        provisions   of   subsection   (b)  for  mandatory  board
32        representation is  submitted  to  the  school  district's
33        voters  at  a  regular  school election or at the general
34        election as provided in this subsection (c).
 
                            -63-     LRB093 04198 SJM 04242 b
 1             (2)  A majority of those voting at the  election  in
 2        each  congressional  township comprising the territory of
 3        the school district, including any congressional township
 4        of less than  100  inhabitants,  vote  in  favor  of  the
 5        proposition.
 6        The  board  of  education  of  the school district may by
 7    resolution order submitted  or,  upon  the  petition  of  the
 8    lesser  of  2,500  or  5% of the school district's registered
 9    voters, shall order submitted to the school district's voters
10    at a regular school election or at the general  election  the
11    proposition  for  the  election of board members at large and
12    without restriction by area of residence within the  district
13    rather  than  in accordance with the provisions of subsection
14    (b) for mandatory board representation; and  the  proposition
15    shall  thereupon  be  certified  by the board's secretary for
16    submission.  If a majority of those voting at the election in
17    each congressional township comprising the territory  of  the
18    school district, including any congressional township of less
19    than  100 inhabitants, vote in favor of the proposition:  (i)
20    the proposition to elect board members at large  and  without
21    restriction by area of residence within the district shall be
22    deemed to have passed, (ii) new members of the board shall be
23    elected at large and without restriction by area of residence
24    within  the district at the next regular school election, and
25    (iii) the terms of office of the board members  incumbent  at
26    the time the proposition is adopted shall expire when the new
27    board   members   that  are  elected  at  large  and  without
28    restriction by area of residence  within  the  district  have
29    organized  in  accordance with Section 10-16.  In a community
30    unit school district that formerly elected its members  under
31    subsection (b) to successive terms not exceeding 4 years, the
32    members  elected  at large and without restriction by area of
33    residence within the district shall be elected for a term  of
34    4  years,  and  in  a  community  unit  school  district that
 
                            -64-     LRB093 04198 SJM 04242 b
 1    formerly  elected  its  members  under  subsection   (b)   to
 2    successive  terms  not exceeding 6 years, the members elected
 3    at large and without restriction by area of residence  within
 4    the  district  shall  be  elected  for  a  term  of  6 years;
 5    provided, that in each case the terms of  the  board  members
 6    initially elected at large and without restriction by area of
 7    residence  within the district as provided in this subsection
 8    shall be staggered and  determined  in  accordance  with  the
 9    provisions of Sections 10-10 and 10-16.
10    (Source: P.A. 89-129, eff. 7-14-95.)

11        (105 ILCS 5/11B-2) (from Ch. 122, par. 11B-2)
12        Sec.  11B-2.   Combining entire districts. Any contiguous
13    territory having an equalized assessed valuation of at  least
14    $5,000,000 and having a population of not less than 1,500 and
15    not  more  than  500,000 may be formed into a combined school
16    district when the State Superintendent of Education  approves
17    a  petition  which  is  filed  by the boards of each district
18    affected or by 30% 10% of the legal voters residing  in  each
19    district  affected,  and when such petition is approved at an
20    election called for the purpose of approving or denying  said
21    petition.   The  petition  shall  be  filed with the Regional
22    Superintendent of the region in which the greater portion  of
23    the  equalized  assessed valuation of the territory described
24    in the petition is situated.
25    (Source: P.A. 83-1311.)

26        (105 ILCS 5/18-8.2) (from Ch. 122, par. 18-8.2)
27        Sec. 18-8.2.  Supplementary State aid  for  new  and  for
28    certain annexing districts.
29        (a)  After the formation of a new district, a computation
30    shall  be  made  to  determine  the  difference  between  the
31    salaries  and district-paid fringe benefits effective in each
32    of the previously existing districts on June 30, prior to the
 
                            -65-     LRB093 04198 SJM 04242 b
 1    creation of the new district.  For the first  4  years  after
 2    the  formation of the new district or if the new district was
 3    formed after October 31, 1982 and prior to the effective date
 4    of this amendatory Act of 1985, for the 3  years  immediately
 5    following  such  effective  date,  a  supplementary State aid
 6    reimbursement shall be paid to the new district equal to  the
 7    difference  between the sum of the salaries and district-paid
 8    fringe benefits earned by each of  the  certificated  members
 9    and  full-time,  educational-support  personnel  of  the  new
10    district  while  employed  in  one of the previously existing
11    districts during the year immediately preceding the formation
12    of  the  new  district  and  the  sum  of  the  salaries  and
13    district-paid fringe benefits those certificated members  and
14    full-time, educational-support personnel would have been paid
15    during the year immediately prior to the formation of the new
16    district  if  placed on the salary schedule of the previously
17    existing district with the highest salary schedule.  For  the
18    5th,  6th,  7th, and 8th years after the formation of the new
19    district, the supplementary State aid reimbursement shall  be
20    80%, 60%, 40%, and 20%, respectively, of the payment received
21    during the first 4 years.
22        (b)  After  the territory of one or more school districts
23    is annexed by one or more other school  districts,  or  after
24    the  division (pursuant to petition under Section 11A-2) of a
25    unit school district or districts into 2 or more parts  which
26    all  are included in 2 or more other community unit districts
27    resulting upon that division, a computation shall be made  to
28    determine   the   difference   between   the   salaries   and
29    district-paid  fringe benefits effective in each such annexed
30    or divided district and in the annexing or resulting district
31    or districts  as  they  each  were  constituted  on  June  30
32    preceding the date when the change of boundaries attributable
33    to  such  annexation  or  division  became  effective for all
34    purposes as determined under Section  7-9,  7A-8  or  11A-10.
 
                            -66-     LRB093 04198 SJM 04242 b
 1    For  the first 4 years after any such annexation or division,
 2    a supplementary State aid reimbursement shall be paid to each
 3    annexing or  resulting  district  as  constituted  after  the
 4    annexation  or  division  equal to the difference between the
 5    sum of the salaries and district-paid fringe benefits  earned
 6    by   each   of   the   certificated  members  and  full-time,
 7    educational-support personnel of such annexing  or  resulting
 8    district  as  constituted  after  the  annexation or division
 9    while employed in an annexed or annexing district,  or  in  a
10    divided  or  resulting  district, during the year immediately
11    preceding the annexation or division,  and  the  sum  of  the
12    salaries and district-paid fringe benefits those certificated
13    members  and  full-time,  educational-support personnel would
14    have been paid during  such  immediately  preceding  year  if
15    placed  on  the salary schedule of whichever of such annexing
16    or annexed districts, or resulting or divided districts,  had
17    the highest salary schedule during such immediately preceding
18    year.  For  the  5th,  6th,  7th,  and  8th  years  after the
19    formation of the new district, the  supplementary  State  aid
20    reimbursement  shall be 80%, 60%, 40%, and 20%, respectively,
21    of the payment received during the first 4 years.
22        (c)  Such supplementary State aid reimbursement shall  be
23    treated  as separate from all other payments made pursuant to
24    Section 18-8 or 18-8.05. In the case of the  formation  of  a
25    new district, reimbursement shall begin during the first year
26    of  operation  of  the  new  district;  and in the case of an
27    annexation of the territory of one or more  school  districts
28    by  one  or  more  other  school  districts,  or the division
29    (pursuant to petition under Section 11A-2) of a  unit  school
30    district  or  districts  into  2  or more parts which all are
31    included  in  2  or  more  other  community  unit   districts
32    resulting  upon  that  division,  reimbursement  shall  begin
33    during   the   first  year  when  the  change  in  boundaries
34    attributable to such annexation or division becomes effective
 
                            -67-     LRB093 04198 SJM 04242 b
 1    for all purposes as determined pursuant to Section 7-9,  7A-8
 2    or  11A-10.   Each  year  any such new, annexing or resulting
 3    district,  as  the  case  may  be,  is  entitled  to  receive
 4    reimbursement, the number of eligible certified  members  who
 5    are  employed  on  October  1  in  any such district shall be
 6    certified to the State Board of Education on prescribed forms
 7    by October 15 and payment shall be made on or before November
 8    15 of that year.
 9        (d)  If a unit school district annexes all the  territory
10    of  another  unit  school district effective for all purposes
11    pursuant to Section 7-9 on July 1, 1988, and if part  of  the
12    annexed  territory  is  detached within 90 days after July 1,
13    1988, then the detachment shall be disregarded  in  computing
14    the supplementary State aid reimbursements under this Section
15    for  the entire 3 year period and the supplementary State aid
16    reimbursements  shall  not  be  diminished  because  of   the
17    detachment.
18        (e)  The  changes made by this amendatory Act of 1989 are
19    intended to be retroactive and applicable to  any  annexation
20    taking  effect after August 1, 1987. The changes made to this
21    Section by this amendatory Act of the 93rd  General  Assembly
22    are   intended  to  be  retroactive  and  applicable  to  any
23    annexation taking effect on or after July 1, 2002.
24    (Source: P.A. 90-548, eff. 1-1-98.)

25        (105 ILCS 5/18-8.3) (from Ch. 122, par. 18-8.3)
26        Sec. 18-8.3.  Supplementary State aid  for  new  and  for
27    certain annexing districts.
28        (a)  For  the  first  year  after  the formation of a new
29    school district formed by combining property included totally
30    within 2 or more previously existing school districts, or  if
31    the  new district was formed after October 31, 1982 and prior
32    to the effective date of this amendatory Act of  1985  or  if
33    the  new district was formed after June 30, 1983 and prior to
 
                            -68-     LRB093 04198 SJM 04242 b
 1    the effective date of this amendatory Act of  1987,  for  the
 2    first  year immediately following either such effective date,
 3    a computation shall be made totaling each previously existing
 4    district's final audited fund  balances  in  the  educational
 5    fund, working cash fund, operations and maintenance fund, and
 6    transportation  fund for the year ending June 30 prior to the
 7    referendum for the creation of  the  new  district.  The  new
 8    district  shall  be paid supplementary State aid equal to the
 9    sum of the differences between the deficit of the  previously
10    existing  district  with  the  smallest  such deficit and the
11    deficits of each of the other previously existing districts.
12        (b)  For the first year after the annexation  of  all  of
13    the  territory  of  one  or  more  entire school districts by
14    another school district (including the annexation by  a  high
15    school  district pursuant to Article 7A of all territory of a
16    unit school district dissolved pursuant to that Article),  or
17    if the annexation took effect after January 1, 1986 and prior
18    to the effective date of this amendatory Act of 1987, for the
19    first  year  immediately following the effective date of this
20    amendatory Act, computations shall  be  made,  for  the  year
21    ending  June  30  prior  to  the  date  that  the  change  of
22    boundaries  attributable to such annexation is allowed by the
23    affirmative decision issued by the regional board  of  school
24    trustees  under  Section  7-6,  notwithstanding any effort to
25    seek administrative review of  such  decision,  totaling  the
26    annexing  district's  and  totaling  each  annexed district's
27    audited  fund  balances  in  their  respective   educational,
28    working  cash, operations and maintenance, and transportation
29    funds.   The  annexing  district  as  constituted  after  the
30    annexation shall be paid supplementary State aid equal to the
31    sum of the differences between the deficit  of  whichever  of
32    the annexing or annexed districts as constituted prior to the
33    annexation  had the smallest deficit and the deficits of each
34    of  such  other  districts  as  constituted  prior  to   such
 
                            -69-     LRB093 04198 SJM 04242 b
 1    annexation.
 2        (c)  For  the  first  year after the annexation of all of
 3    the territory of one or more entire school districts by 2  or
 4    more other school districts, and for the first year after the
 5    division (pursuant to petition under Section 11A-2) of a unit
 6    school  district  or districts into 2 or more parts which all
 7    are included in 2 or  more  other  community  unit  districts
 8    resulting upon that division, computations shall be made (for
 9    the  year ending June 30 prior to the date that the change of
10    boundaries attributable to such  annexation  or  division  is
11    allowed  by the affirmative decision of the regional board of
12    school  trustees  under  Section  7-6   or   by   the   State
13    Superintendent    of    Education    under   Section   11A-3,
14    notwithstanding any action for administrative review of  such
15    decision)  totaling  each annexing and annexed district's, or
16    each resulting and divided district's audited  fund  balances
17    in their respective educational, working cash, operations and
18    maintenance,  and  transportation  funds.   The  annexing  or
19    resulting  districts  as  constituted after the annexation or
20    division shall be paid supplementary State aid, allocated  as
21    hereinafter provided, in an aggregate amount equal to the sum
22    of  the  differences  between the deficit of whichever of the
23    annexing  or  annexed  districts,  or  resulting  or  divided
24    districts,  as  constituted  prior  to  the   annexation   or
25    division,  had  the smallest deficit and the deficits of each
26    of  such  other  districts  as  constituted  prior  to   such
27    annexation   or   division.   The  aggregate  amount  of  the
28    supplementary State aid payable under this  subsection  shall
29    be  allocated  between  or  among  the  annexing or resulting
30    districts as follows:  (i)  the  regional  superintendent  of
31    schools  for  each  educational  service  region  in which an
32    annexed or divided school district is located  prior  to  the
33    annexation  or  division  shall certify to the State Board of
34    Education, on forms which it shall provide for that  purpose,
 
                            -70-     LRB093 04198 SJM 04242 b
 1    the  value  of  all  taxable property in each such annexed or
 2    divided school district as last equalized or assessed by  the
 3    Department  of  Revenue  prior to the annexation or division,
 4    and the equalized assessed value of each part of the  annexed
 5    or divided district that was annexed to or included as a part
 6    of  an  annexing  or resulting district; (ii) using equalized
 7    assessed values as certified by the  regional  superintendent
 8    of  schools under clause (i) of this subsection, the combined
 9    audited fund balance  deficit  of  each  annexed  or  divided
10    district   as   determined   under   this  Section  shall  be
11    apportioned  between  or  among  the  annexing  or  resulting
12    districts in the same ratio as the equalized  assessed  value
13    of  that  part  of such annexed or divided district which was
14    annexed to or included as a part of an annexing or  resulting
15    district  bears to the total equalized assessed value of such
16    annexed  or  divided  district;   and  (iii)  the   aggregate
17    supplementary  State  aid payment under this subsection shall
18    be allocated between or among, and  shall  be  paid  to,  the
19    annexing and resulting districts in the same ratio as the sum
20    of  the  combined  audited  fund balance deficit of each such
21    annexing or resulting district as constituted  prior  to  the
22    annexation or division plus all combined audited fund balance
23    deficit  amounts  apportioned  to  that annexing or resulting
24    district under clause (ii) of this subsection  bears  to  the
25    aggregate  of  the  combined audited fund balance deficits of
26    all of the annexing and annexed districts, or  resulting  and
27    divided  districts, as constituted prior to the annexation or
28    division.
29        (d)  For  purposes  of  any  calculation  required  under
30    subsection (a), (b) or (c), a district with a  combined  fund
31    balance that is positive will be considered to have a deficit
32    of  zero. For purposes of determining each district's audited
33    fund balances in its educational  fund,  working  cash  fund,
34    operations  and  maintenance fund and transportation fund for
 
                            -71-     LRB093 04198 SJM 04242 b
 1    the specified year ending June 30 as provided in  subsections
 2    (a),  (b)  and  (c),  the  balance of each such fund shall be
 3    deemed decreased by an amount equal  to  the  amount  of  the
 4    annual  property  tax  theretofore levied in such fund by the
 5    district for collection and payment to  the  district  during
 6    the calendar year in which such June 30 fell, but only to the
 7    extent  that  the  tax  so  levied  in such fund actually was
 8    received by the district on or before, or comprised a part of
 9    such fund on such June 30.  For purposes of determining  each
10    district's audited fund balances, a calculation shall be made
11    for  each fund to determine the average for the 3 years prior
12    to  the  specified  year  ending  June  30  as  provided   in
13    subsections  (a), (b), and (c) of the district's expenditures
14    in  the  categories  "purchased  services",   "supplies   and
15    materials",  and  "capital  outlay",  as those categories are
16    defined in rules of the State Board of  Education.   If  this
17    three-year  average  is less than the district's expenditures
18    in these categories for the specified year ending June 30  as
19    provided   in   subsections  (a),  (b),  and  (c),  then  the
20    three-year average shall be used in calculating  the  amounts
21    payable  under  this Section in place of the amounts shown in
22    these categories for the specified year  ending  June  30  as
23    provided  in  subsections (a), (b), and (c).  For purposes of
24    subsection (a), the changes made to this  subsection  (d)  by
25    this amendatory Act of 1987 shall apply to the formation of a
26    new  district by combining property included totally within 2
27    or  more  previously  existing  districts  whenever  the  new
28    district was so formed after June 30, 1983 and prior to  this
29    amendatory  Act  of  1987 and whenever the new district is so
30    formed after such effective date. For purposes of  subsection
31    (b),  the  changes  made  to  this  subsection  (d)  by  this
32    amendatory  Act  of 1987 shall apply to the annexation of all
33    of the territory of one or more entire  school  districts  by
34    another  school  district whenever the annexation took effect
 
                            -72-     LRB093 04198 SJM 04242 b
 1    after January 1, 1986 and prior to the effective date of this
 2    amendatory  Act  of  1987  and  whenever  the  annexation   -
 3    including an annexation by a high school district pursuant to
 4    Article  7A  of  all  territory  of  a  unit  school district
 5    dissolved pursuant to that Article - takes effect after  such
 6    effective  date.  Any  deficit  because  of State aid not yet
 7    received shall not be considered in determining such June  30
 8    deficits.   The same basis of accounting shall be used by all
 9    previously existing districts and by all annexing or  annexed
10    districts,  or resulting or divided districts, as constituted
11    prior to the annexation or division in making any computation
12    required under subsection (a), (b) or (c).
13        (e)  Such  supplementary  State  aid  payments  shall  be
14    treated as separate from all other payments made pursuant  to
15    Section 18-8.
16        (f)  The  amendments  to  this Section made by Public Act
17    83-1417 shall not apply if the petition for a referendum  for
18    the  creation  of  the new school district was filed with the
19    regional superintendent of schools or the regional  board  of
20    school  trustees after January 5, 1984, and prior to June 30,
21    1984.
22        (g)  If a unit school district annexes all the  territory
23    of  another  unit  school district effective for all purposes
24    pursuant to Section 7-9 on July 1, 1988, and if part  of  the
25    annexed  territory  is  detached within 90 days after July 1,
26    1988, then the detachment shall be disregarded  in  computing
27    the  supplementary  State aid payments under this Section and
28    the supplementary State aid payments shall not be  diminished
29    because of the detachment.
30        (h)  The  changes made to this Section by this amendatory
31    Act  of  the  93rd  General  Assembly  are  intended  to   be
32    retroactive  and  applicable  to  any  reorganization  taking
33    effect on or after July 1, 2002.
34    (Source: P.A. 88-555, eff. 7-27-94.)
 
                            -73-     LRB093 04198 SJM 04242 b
 1        (105 ILCS 5/18-8.5) (from Ch. 122, par. 18-8.5)
 2        Sec. 18-8.5. Supplementary State aid for new, annexing or
 3    resulting districts.
 4        (a)  Following  the  formation  of  a new school district
 5    pursuant to Article 11A or 11B, or of a new elementary school
 6    district pursuant to Article 7A,  or the annexation of all of
 7    the territory of one or more entire school districts  by  one
 8    or  more  other school districts, or the division pursuant to
 9    petition under Section 11A-2 of a  unit  school  district  or
10    districts into 2 or more parts which all are included in 2 or
11    more  other  community  unit  districts  resulting  upon that
12    division, a supplementary State aid  reimbursement  shall  be
13    paid  for 4 years the number of school years determined under
14    the following  table  to  each  new,  annexing  or  resulting
15    district  equal  to  the  sum  of  $4,000  for each certified
16    employee and $2,000  for  each  classified  employee  who  is
17    employed  by  such  district  on  a  full-time  basis for the
18    regular term of any such school year. Each year these amounts
19    shall be increased by the annual percentage increase  if  any
20    in  the  Consumer Price Index for All Urban Consumers for all
21    items published by the United States Department of Labor.:
22     Reorganized District's Rank   Reorganized District's Rank
23      by type of district (unit,   in Average Daily Attendance
24       high school, elementary)    By Quintile
25     in Equalized Assessed Value
26        Per Pupil by Quintile
27                                                         3rd, 4th
28                                   1st        2nd          or 5th
29                                   Quintile   Quintile   Quintile
30               1st Quintile        1 year     1 year       1 year
31               2nd Quintile        1 year     2 years     2 years
32               3rd Quintile        2 years    3 years     3 years
33               4th Quintile        2 years    3 years     3 years
34               5th Quintile        2 years    3 years     3 years
 
                            -74-     LRB093 04198 SJM 04242 b
 1    The  State  Board  of  Education  shall   make   a   one-time
 2    calculation  of a reorganized district's quintile ranks.  The
 3    average daily attendance used in this  calculation  shall  be
 4    the   best   3  months'  average  daily  attendance  for  the
 5    district's first year.   The  equalized  assessed  value  per
 6    pupil   shall  be  the  district's  real  property  equalized
 7    assessed value used in calculating the district's  first-year
 8    general State aid claim divided by the best 3 months' average
 9    daily attendance.
10        No   annexing  or  resulting  school  district  shall  be
11    entitled to supplementary State aid under this Section unless
12    such district acquires at least  30%  of  the  average  daily
13    attendance  of the district from which the territory is being
14    detached or divided.
15        If a district results from multiple reorganizations  that
16    would  otherwise  qualify  the district for multiple payments
17    under this Section in any year, the district shall receive  a
18    single  payment  only  for that year based solely on the most
19    recent  reorganization.  A  district  may   not   receive   a
20    supplementary  State  aid  grant  under  this  Section  while
21    receiving a similar grant from a prior reorganization.
22        (b)  The  supplementary  State  aid reimbursement payable
23    under this Section shall be separate from and in addition  to
24    all other payments made to the district pursuant to any other
25    Section of this Article.
26        (c)  During   May   of  each  school  year  for  which  a
27    supplementary State aid reimbursement is to be paid to a new,
28    annexing  or  resulting  school  district  pursuant  to  this
29    Section, the school board shall certify to the State Board of
30    Education, on forms furnished to  the  school  board  by  the
31    State  Board  of  Education for purposes of this Section, the
32    number of certified  employees  for  which  the  district  is
33    entitled  to  reimbursement under this Section, together with
34    the names, certificate numbers and  positions  held  by  such
 
                            -75-     LRB093 04198 SJM 04242 b
 1    certified employees.
 2        (d)  Upon  certification  by the State Board of Education
 3    to the State Comptroller of the amount of  the  supplementary
 4    State  aid  reimbursement  to  which  a  school  district  is
 5    entitled  by  this  Section, the State Comptroller shall draw
 6    his warrant upon the State Treasurer for the payment  thereof
 7    to  the  school  district  and  shall  promptly  transmit the
 8    payment to the school district through the appropriate school
 9    treasurer.
10        (e)  The changes to this  Section  made  by  P.A.  88-555
11    shall  apply  to  all reorganizations for which the petitions
12    are filed with the regional board of school trustees  or  the
13    regional  superintendent,  as  the  case  may be, on or after
14    January 1, 1995.
15        (f)  The changes made to this Section by this  amendatory
16    Act   of  the  93rd  General  Assembly  are  intended  to  be
17    retroactive  and  applicable  to  any  reorganization  taking
18    effect on or after July 1, 2002.
19    (Source: P.A. 87-10; 87-435; 87-1210; 88-555,  eff.  7-27-94;
20    88-686, eff. 1-24-95.)

21        (105 ILCS 5/18-8.6a new)
22        Sec. 18-8.6a.  Educational facilities for newly organized
23    school districts; funds for construction.
24        (a)  After   the  formation  of  a  new  school  district
25    maintaining  grades  kindergarten  through  12,   formed   by
26    combining  property  included  completely  within  2  or more
27    previously existing school districts,  if  the  newly  formed
28    district  can  show need for a new facility or addition to an
29    existing facility, construction funding shall be provided  by
30    the  State  at  no  cost  to  the  district, under guidelines
31    established by the Capital Development Board, if all  of  the
32    following requirements are met:
33             (1)  The  regional  superintendent  of  schools  has
 
                            -76-     LRB093 04198 SJM 04242 b
 1        verified  the  need  for  the construction and has made a
 2        favorable recommendation to the State  Superintendent  of
 3        Education.
 4             (2)  The  regional  superintendent's  recommendation
 5        has  been  evaluated  and  approved by the State Board of
 6        Education and Capital Development Board.
 7        (b)  Funds for construction under this Section  shall  be
 8    provided through a separate appropriation.
 9        (c)  This  Section applies to a school district organized
10    on or after July 1, 2002.

11        (105 ILCS 5/18-8.6b new)
12        Sec. 18-8.6b.  Implementation grants for newly  organized
13    school districts.
14        (a)  After  the formation of a new school district formed
15    by combining property included completely within  2  or  more
16    previously  existing school districts, a one-time grant shall
17    be  made  to  the  newly  formed  district  to  assist   with
18    implementation of the newly formed district and shall be used
19    for  purposes  that may include without limitation curriculum
20    articulation,    handbook     revisions,     extra-curricular
21    activities,   staff   development,   school  board  training,
22    alignment of State standards,  mentoring,  school  structure,
23    and assessments.
24        (b)  The  grant  amount  shall be determined by the State
25    Board of Education and shall be the lesser of (i) $50,000  or
26    (ii)  an  amount  determined  by  multiplying  the  number of
27    students in the newly formed school district by $10, added to
28    an amount determined by multiplying the number of teachers in
29    the  newly  formed  district  by  $25,  added  to  an  amount
30    determined by multiplying the number of square miles  in  the
31    newly formed district by $50.
32        (c)  Funds   for  grants  under  this  Section  shall  be
33    provided through a separate appropriation.
 
                            -77-     LRB093 04198 SJM 04242 b
 1        (d)  This Section applies to a school district  organized
 2    on or after July 1, 2002.

 3        (105 ILCS 5/7-7.5 rep.)
 4        (105 ILCS 5/7-7.6 rep.)
 5        (105 ILCS 5/7-7.7 rep.)
 6        Section  10-15.  The  School Code is amended by repealing
 7    Sections 7-7.5, 7-7.6, and 7-7.7.

 8        Section 10-20.  The School Construction Law is amended by
 9    changing Section 5-30 as follows:

10        (105 ILCS 230/5-30)
11        Sec. 5-30. Priority of school construction projects.  The
12    State Board of Education  shall  develop  standards  for  the
13    determination    of    priority   needs   concerning   school
14    construction projects based upon approved district facilities
15    plans.  Such standards shall call for prioritization based on
16    the degree of need and project type in the following order:
17        (1)  Replacement or reconstruction  of  school  buildings
18    destroyed  or damaged by flood, tornado, fire, earthquake, or
19    other disasters, either man-made or produced by nature;
20        (2)  Projects  designed  to  alleviate  a   shortage   of
21    classrooms  due  to  population  growth  or  to replace aging
22    school buildings;
23        (3)  Projects resulting from interdistrict reorganization
24    of school districts contingent on local referenda;
25        (3)  (4)  Replacement   or   reconstruction   of   school
26    facilities  determined  to be severe and continuing health or
27    life safety hazards;
28        (4) (5)  Alterations necessary to  provide  accessibility
29    for qualified individuals with disabilities; and
30        (5) (6)  Other unique solutions to facility needs.
31    (Source: P.A. 90-548, eff. 1-1-98.)
 
                            -78-     LRB093 04198 SJM 04242 b
 1                             ARTICLE 15

 2        Section 15-5.  The State Finance Act is amended by adding
 3    Sections 5.595 and 6z-59 as follows:

 4        (30 ILCS 105/5.595 new)
 5        Sec. 5.595. The School District Property Tax Relief Fund.

 6        (30 ILCS 105/6z-59 new)
 7        Sec.  6z-59.  School  District  Property Tax Relief Fund.
 8    The School District Property Tax Relief Fund is created as  a
 9    special  fund  in the State treasury.  All interest earned on
10    moneys in the Fund shall be deposited into the Fund.
11        (a)  As used in this Section:
12        "Department" means the Illinois Department of Revenue.
13        "School district property tax  relief  grant"  means  the
14    money  designated to be distributed to a school district from
15    the moneys appropriated by  the  General  Assembly  from  the
16    School District Property Tax Relief Fund.
17        (b)  Between November 15 and 17 of each year beginning in
18    2003,  the  Department  must  certify  the  amount  of  money
19    available for school district property tax relief grants. The
20    amount  available  is equal to the amount appropriated by the
21    General Assembly or the unencumbered amount in  the  Fund  at
22    the time of certification, whichever is less.
23        (c)  Between November 15 and 17 of each year beginning in
24    2003,  the  Department  must calculate each school district's
25    grant amount.
26        The amount of the grant for each school  district  for  a
27    tax  year  is calculated as follows: (i) each school district
28    must certify to the Department the rate of the  tax  extended
29    for  educational  purposes  for the 2001 tax year (payable in
30    2002) for the  school  district;  (ii)  the  Department  must
31    determine  the  equalized assessed value (EAV) of all taxable
 
                            -79-     LRB093 04198 SJM 04242 b
 1    property in the school district for the  tax  year  preceding
 2    the  then current tax year; (iii) the rate determined in item
 3    (i) is multiplied by the EAV determined in  item  (ii);  (iv)
 4    the amounts determined in item (iii) for all school districts
 5    are added together to reach an aggregate total for all school
 6    districts;  and (v) the amount certified by the Department as
 7    available for distribution for that tax year is multiplied by
 8    the amount determined in item (iii) and then the  product  is
 9    divided  by  the  amount  determined in item (iv). The result
10    determined in item (v) is the grant amount for the tax  year.
11    For example:
12             (1)  Total  grant amount certified by the Department
13        for the tax year  is  $5,000,000  to  be  distributed  to
14        school districts A and B.
15             (2)  School district A:
16                  (A)  Tax  rate for educational purposes for the
17             2001 tax year was 1.50%.
18                  (B)  Equalized assessed value  of  all  taxable
19             property  in school district A for the preceding tax
20             year was $50,000,000.
21             (3)  School district B:
22                  (A)  Tax rate for educational purposes for  the
23             2001 tax year was 1.35%.
24                  (B)  Equalized  assessed  value  of all taxable
25             property in school district B for the preceding  tax
26             year was $75,000,000.
27    For  school  district  A,  the  tax  rate  multiplied  by the
28    preceding tax year's equalized assessed value of all  taxable
29    property  is  $750,000 (1.50% multiplied by $50,000,000). For
30    school district B, the tax rate multiplied by  the  preceding
31    tax  year's  equalized assessed value of all taxable property
32    is $1,012,500 (1.35% multiplied by $75,000,000). The  sum  of
33    these  2 amounts is $1,762,500. The grant for school district
34    A is $5,000,000 (the total amount of grant moneys  available)
 
                            -80-     LRB093 04198 SJM 04242 b
 1    multiplied  by  $750,000  and  then the product is divided by
 2    $1,762,500. School district  A's  grant  is  $2,127,660.  The
 3    grant  for  school district B is $5,000,000 (the total amount
 4    of grant moneys available) multiplied by $1,012,500 and  then
 5    the  product  is  divided  by $1,762,500. School district B's
 6    grant is $2,872,340.
 7        The  Department  must  adopt  rules  to   determine   the
 8    computation  of  the  grant amount for a school district that
 9    has undergone school district reorganization under Article 7,
10    7A, 11A, 11B,  or  11D  of  the  School  Code  (for  example:
11    consolidation,  conversion into a different type of district,
12    or creation of a new district).
13        (d)  Between November 15 and 17 of each year beginning in
14    2003, the Department must certify to the county clerk of each
15    county the amount of the grant for each school district lying
16    wholly or partly in the county  to  be  paid  to  the  county
17    collector for distribution to the school district. The amount
18    of  the  grant  for a school district that lies partly in the
19    county shall be that amount which bears the same ratio to the
20    grant for the whole school district as the equalized assessed
21    value of the taxable property in the school district for  the
22    preceding  tax  year  that  lies  in  the county bears to the
23    equalized assessed value  of  all  taxable  property  in  the
24    school district for the preceding tax year.
25        (e)  Upon  receipt  of  a  notice  from  the county clerk
26    required under Section 18-178 of the Property Tax  Code  that
27    the  extension  for  educational purposes has been determined
28    and abated for each school  district  or  part  of  a  school
29    district  in  the  county, the Department must certify to the
30    Comptroller the amount of the school  district  property  tax
31    relief  grant  to  be  paid  to  the  county  collector.  The
32    Comptroller  must  promptly  pay  the  grants  to  the county
33    collector. Upon receipt of the school district  property  tax
34    relief  grants,  the  county collector must pay the grants to
 
                            -81-     LRB093 04198 SJM 04242 b
 1    the respective school districts within 5 business days.

 2        Section 15-10.  The Illinois Income Tax Act is amended by
 3    changing Sections 201,  203,  804,  and  901  and  by  adding
 4    Section 202.5 as follows:

 5        (35 ILCS 5/201) (from Ch. 120, par. 2-201)
 6        Sec. 201.  Tax Imposed.
 7        (a)  In  general.  A tax measured by net income is hereby
 8    imposed on every individual, corporation,  trust  and  estate
 9    for  each  taxable  year  ending  after  July 31, 1969 on the
10    privilege of earning or receiving income in or as a  resident
11    of  this  State.  Such  tax shall be in addition to all other
12    occupation or privilege taxes imposed by this State or by any
13    municipal corporation or political subdivision thereof.
14        (b)  Rates.  The tax imposed by subsection  (a)  of  this
15    Section shall be determined as follows, except as adjusted by
16    subsection (d-1):
17             (1)  In  the case of an individual, trust or estate,
18        for taxable years ending prior to July 1, 1989, an amount
19        equal to 2 1/2% of the  taxpayer's  net  income  for  the
20        taxable year.
21             (2)  In  the case of an individual, trust or estate,
22        for taxable years beginning prior to  July  1,  1989  and
23        ending after June 30, 1989, an amount equal to the sum of
24        (i)  2  1/2%  of the taxpayer's net income for the period
25        prior to July 1, 1989, as calculated under Section 202.3,
26        and (ii) 3% of the taxpayer's net income for  the  period
27        after June 30, 1989, as calculated under Section 202.3.
28             (3)  In  the case of an individual, trust or estate,
29        for taxable years  beginning  after  June  30,  1989  and
30        ending  prior  to  July 1, 2003, an amount equal to 3% of
31        the taxpayer's net income for the taxable year.
32             (4)  In the case of an individual, trust, or estate,
 
                            -82-     LRB093 04198 SJM 04242 b
 1        for taxable years beginning prior to  July  1,  2003  and
 2        ending after June 30, 2003, an amount equal to the sum of
 3        (i)  3% of the taxpayer's net income for the period prior
 4        to July 1, 2003, as calculated under Section  202.5,  and
 5        (ii) 4% of the taxpayer's net income for the period after
 6        June 30, 2003, as calculated under Section 202.5 (Blank).
 7             (5)  In the case of an individual, trust, or estate,
 8        for  taxable  years  beginning  after  June  30, 2003, an
 9        amount equal to 4% of the taxpayer's net income  for  the
10        taxable year (Blank).
11             (6)  In the case of a corporation, for taxable years
12        ending  prior  to  July 1, 1989, an amount equal to 4% of
13        the taxpayer's net income for the taxable year.
14             (7)  In the case of a corporation, for taxable years
15        beginning prior to July 1, 1989 and ending after June 30,
16        1989, an amount equal  to  the  sum  of  (i)  4%  of  the
17        taxpayer's  net  income  for  the period prior to July 1,
18        1989, as calculated under Section 202.3, and (ii) 4.8% of
19        the taxpayer's net income for the period after  June  30,
20        1989, as calculated under Section 202.3.
21             (8)  In the case of a corporation, for taxable years
22        beginning after June 30, 1989 and ending prior to July 1,
23        2003,  an  amount  equal  to  4.8%  of the taxpayer's net
24        income for the taxable year.
25             (9)  In the case a corporation,  for  taxable  years
26        beginning prior to July 1, 2003 and ending after June 30,
27        2003,  an  amount  equal  to  the  sum of (i) 4.8% of the
28        taxpayer's net income for the period  prior  to  July  1,
29        2003, as calculated under Section 202.5, and (ii) 6.4% of
30        the  taxpayer's  net income for the period after June 30,
31        2003, as calculated under Section 202.5.
32             (10)  In the case  of  a  corporation,  for  taxable
33        years  beginning  after June 30, 2003, an amount equal to
34        6.4% of the taxpayer's net income for the taxable year.
 
                            -83-     LRB093 04198 SJM 04242 b
 1        (c)  Personal  Property  Tax  Replacement   Income   Tax.
 2    Beginning on July 1, 1979 and thereafter, in addition to such
 3    income  tax,  there  is  also  hereby  imposed  the  Personal
 4    Property Tax Replacement Income Tax measured by net income on
 5    every  corporation  (including  Subchapter  S  corporations),
 6    partnership  and  trust,  for  each taxable year ending after
 7    June 30, 1979.  Such taxes are imposed on  the  privilege  of
 8    earning  or  receiving  income  in  or  as a resident of this
 9    State.  The Personal  Property  Tax  Replacement  Income  Tax
10    shall be in addition to the income tax imposed by subsections
11    (a)  and  (b)  of  this  Section and in addition to all other
12    occupation or privilege taxes imposed by this State or by any
13    municipal corporation or political subdivision thereof.
14        (d)  Additional Personal Property Tax Replacement  Income
15    Tax  Rates.  The personal property tax replacement income tax
16    imposed by this subsection and subsection (c) of this Section
17    in the case of a  corporation,  other  than  a  Subchapter  S
18    corporation and except as adjusted by subsection (d-1), shall
19    be an additional amount equal to 2.85% of such taxpayer's net
20    income for the taxable year, except that beginning on January
21    1,  1981, and thereafter, the rate of 2.85% specified in this
22    subsection shall be reduced to 2.5%, and in  the  case  of  a
23    partnership,  trust or a Subchapter S corporation shall be an
24    additional amount equal to 1.5% of such taxpayer's net income
25    for the taxable year.
26        (d-1)  Rate reduction for certain foreign  insurers.   In
27    the case of a foreign insurer, as defined by Section 35A-5 of
28    the  Illinois  Insurance  Code,  whose  state  or  country of
29    domicile  imposes  on  insurers  domiciled  in   Illinois   a
30    retaliatory  tax  (excluding  any insurer whose premiums from
31    reinsurance assumed are 50% or more of  its  total  insurance
32    premiums  as determined under paragraph (2) of subsection (b)
33    of  Section  304,  except   that   for   purposes   of   this
34    determination   premiums  from  reinsurance  do  not  include
 
                            -84-     LRB093 04198 SJM 04242 b
 1    premiums  from  inter-affiliate  reinsurance   arrangements),
 2    beginning  with taxable years ending on or after December 31,
 3    1999, the sum of the rates of tax imposed by subsections  (b)
 4    and  (d)  shall be reduced (but not increased) to the rate at
 5    which the total amount of tax imposed under this Act, net  of
 6    all credits allowed under this Act, shall equal (i) the total
 7    amount  of tax that would be imposed on the foreign insurer's
 8    net income allocable to Illinois for the taxable year by such
 9    foreign insurer's state or country of domicile  if  that  net
10    income were subject to all income taxes and taxes measured by
11    net income imposed by such foreign insurer's state or country
12    of  domicile,  net  of  all credits allowed or (ii) a rate of
13    zero if no such tax is imposed on such income by the  foreign
14    insurer's  state  of  domicile.  For  the  purposes  of  this
15    subsection   (d-1),  an  inter-affiliate  includes  a  mutual
16    insurer under common management.
17             (1)  For the purposes of  subsection  (d-1),  in  no
18        event  shall  the  sum  of  the  rates  of tax imposed by
19        subsections (b) and (d) be  reduced  below  the  rate  at
20        which the sum of:
21                  (A)  the  total  amount  of tax imposed on such
22             foreign insurer under this Act for a  taxable  year,
23             net of all credits allowed under this Act, plus
24                  (B)  the  privilege  tax imposed by Section 409
25             of the Illinois Insurance Code, the  fire  insurance
26             company  tax  imposed  by  Section  12  of  the Fire
27             Investigation Act, and  the  fire  department  taxes
28             imposed   under  Section  11-10-1  of  the  Illinois
29             Municipal Code,
30        equals 1.25% of the net taxable premiums written for  the
31        taxable  year,  as described by subsection (1) of Section
32        409 of the Illinois Insurance Code. This  paragraph  will
33        in  no event increase the rates imposed under subsections
34        (b) and (d).
 
                            -85-     LRB093 04198 SJM 04242 b
 1             (2)  Any reduction in the rates of  tax  imposed  by
 2        this  subsection shall be applied first against the rates
 3        imposed by subsection (b) and only after the tax  imposed
 4        by  subsection  (a) net of all credits allowed under this
 5        Section other than the credit  allowed  under  subsection
 6        (i)  has  been reduced to zero, against the rates imposed
 7        by subsection (d).
 8        This subsection (d-1) is exempt from  the  provisions  of
 9    Section 250.
10        (e)  Investment  credit.   A  taxpayer shall be allowed a
11    credit against the Personal Property Tax  Replacement  Income
12    Tax for investment in qualified property.
13             (1)  A  taxpayer  shall be allowed a credit equal to
14        .5% of the basis of qualified property placed in  service
15        during the taxable year, provided such property is placed
16        in  service  on  or  after  July 1, 1984.  There shall be
17        allowed an additional credit equal to .5% of the basis of
18        qualified property placed in service during  the  taxable
19        year,  provided  such property is placed in service on or
20        after July 1, 1986, and the  taxpayer's  base  employment
21        within  Illinois  has  increased  by  1% or more over the
22        preceding year as determined by the taxpayer's employment
23        records filed with the Illinois Department of  Employment
24        Security.   Taxpayers  who  are  new to Illinois shall be
25        deemed to have met the 1% growth in base  employment  for
26        the first year in which they file employment records with
27        the  Illinois  Department  of  Employment  Security.  The
28        provisions added to this Section by  Public  Act  85-1200
29        (and restored by Public Act 87-895) shall be construed as
30        declaratory  of  existing law and not as a new enactment.
31        If, in any year, the increase in base  employment  within
32        Illinois  over  the  preceding  year is less than 1%, the
33        additional credit shall be  limited  to  that  percentage
34        times  a  fraction, the numerator of which is .5% and the
 
                            -86-     LRB093 04198 SJM 04242 b
 1        denominator of which is 1%, but  shall  not  exceed  .5%.
 2        The  investment credit shall not be allowed to the extent
 3        that it would reduce a taxpayer's liability  in  any  tax
 4        year  below  zero,  nor  may  any  credit  for  qualified
 5        property  be  allowed for any year other than the year in
 6        which the property was placed in service in Illinois. For
 7        tax years ending on or after December 31, 1987, and on or
 8        before December 31, 1988, the credit shall be allowed for
 9        the tax year in which the property is placed in  service,
10        or, if the amount of the credit exceeds the tax liability
11        for  that year, whether it exceeds the original liability
12        or the liability as later amended,  such  excess  may  be
13        carried forward and applied to the tax liability of the 5
14        taxable  years  following  the excess credit years if the
15        taxpayer (i) makes investments which cause  the  creation
16        of  a  minimum  of  2,000  full-time  equivalent  jobs in
17        Illinois,  (ii)  is  located  in   an   enterprise   zone
18        established  pursuant to the Illinois Enterprise Zone Act
19        and (iii) is certified by the Department of Commerce  and
20        Community  Affairs  as  complying  with  the requirements
21        specified in clause (i) and (ii) by July  1,  1986.   The
22        Department of Commerce and Community Affairs shall notify
23        the  Department  of  Revenue  of  all such certifications
24        immediately. For tax  years  ending  after  December  31,
25        1988,  the  credit  shall  be allowed for the tax year in
26        which the property is  placed  in  service,  or,  if  the
27        amount  of  the credit exceeds the tax liability for that
28        year, whether it exceeds the original  liability  or  the
29        liability  as  later  amended, such excess may be carried
30        forward and applied to the tax liability of the 5 taxable
31        years following the excess credit years. The credit shall
32        be applied to the earliest year  for  which  there  is  a
33        liability. If there is credit from more than one tax year
34        that  is  available to offset a liability, earlier credit
 
                            -87-     LRB093 04198 SJM 04242 b
 1        shall be applied first.
 2             (2)  The term "qualified  property"  means  property
 3        which:
 4                  (A)  is   tangible,   whether   new   or  used,
 5             including buildings  and  structural  components  of
 6             buildings  and signs that are real property, but not
 7             including land or improvements to real property that
 8             are not a structural component of a building such as
 9             landscaping,  sewer  lines,  local   access   roads,
10             fencing, parking lots, and other appurtenances;
11                  (B)  is  depreciable pursuant to Section 167 of
12             the  Internal  Revenue  Code,  except  that  "3-year
13             property" as defined in Section 168(c)(2)(A) of that
14             Code is not eligible for the credit provided by this
15             subsection (e);
16                  (C)  is acquired  by  purchase  as  defined  in
17             Section 179(d) of the Internal Revenue Code;
18                  (D)  is  used  in Illinois by a taxpayer who is
19             primarily engaged in  manufacturing,  or  in  mining
20             coal or fluorite, or in retailing; and
21                  (E)  has  not  previously been used in Illinois
22             in such a manner and  by  such  a  person  as  would
23             qualify  for  the credit provided by this subsection
24             (e) or subsection (f).
25             (3)  For   purposes   of   this   subsection    (e),
26        "manufacturing" means the material staging and production
27        of  tangible  personal  property  by  procedures commonly
28        regarded as manufacturing,  processing,  fabrication,  or
29        assembling  which changes some existing material into new
30        shapes, new qualities, or new combinations.  For purposes
31        of this subsection (e) the term "mining" shall  have  the
32        same  meaning  as  the term "mining" in Section 613(c) of
33        the  Internal  Revenue  Code.   For  purposes   of   this
34        subsection  (e),  the  term "retailing" means the sale of
 
                            -88-     LRB093 04198 SJM 04242 b
 1        tangible  personal  property  or  services  rendered   in
 2        conjunction  with  the sale of tangible consumer goods or
 3        commodities.
 4             (4)  The basis of qualified property  shall  be  the
 5        basis  used  to  compute  the  depreciation deduction for
 6        federal income tax purposes.
 7             (5)  If the basis of the property for federal income
 8        tax depreciation purposes is increased after it has  been
 9        placed in service in Illinois by the taxpayer, the amount
10        of  such  increase  shall  be  deemed  property placed in
11        service on the date of such increase in basis.
12             (6)  The term "placed in  service"  shall  have  the
13        same  meaning as under Section 46 of the Internal Revenue
14        Code.
15             (7)  If during any taxable year, any property ceases
16        to be qualified property in the  hands  of  the  taxpayer
17        within  48  months  after being placed in service, or the
18        situs of any qualified property is moved outside Illinois
19        within 48 months  after  being  placed  in  service,  the
20        Personal  Property  Tax  Replacement  Income Tax for such
21        taxable year shall be increased.  Such increase shall  be
22        determined by (i) recomputing the investment credit which
23        would  have been allowed for the year in which credit for
24        such property was originally allowed by eliminating  such
25        property from such computation and, (ii) subtracting such
26        recomputed  credit  from  the amount of credit previously
27        allowed. For  the  purposes  of  this  paragraph  (7),  a
28        reduction  of  the  basis of qualified property resulting
29        from a redetermination of the  purchase  price  shall  be
30        deemed  a disposition of qualified property to the extent
31        of such reduction.
32             (8)  Unless the investment  credit  is  extended  by
33        law,  the  basis  of qualified property shall not include
34        costs incurred after December 31, 2003, except for  costs
 
                            -89-     LRB093 04198 SJM 04242 b
 1        incurred  pursuant  to a binding contract entered into on
 2        or before December 31, 2003.
 3             (9)  Each taxable year ending  before  December  31,
 4        2000,  a  partnership  may  elect  to pass through to its
 5        partners the credits to which the partnership is entitled
 6        under this  subsection  (e)  for  the  taxable  year.   A
 7        partner  may use the credit allocated to him or her under
 8        this  paragraph  only  against   the   tax   imposed   in
 9        subsections   (c)  and  (d)  of  this  Section.   If  the
10        partnership makes that election, those credits  shall  be
11        allocated  among  the  partners  in  the  partnership  in
12        accordance  with the rules set forth in Section 704(b) of
13        the Internal Revenue  Code,  and  the  rules  promulgated
14        under  that  Section,  and  the  allocated  amount of the
15        credits shall be allowed to the partners for that taxable
16        year.  The partnership shall make this  election  on  its
17        Personal  Property  Tax Replacement Income Tax return for
18        that taxable year.  The  election  to  pass  through  the
19        credits shall be irrevocable.
20             For  taxable  years  ending on or after December 31,
21        2000, a partner that  qualifies  its  partnership  for  a
22        subtraction  under  subparagraph  (I) of paragraph (2) of
23        subsection (d) of  Section  203  or  a  shareholder  that
24        qualifies  a  Subchapter  S corporation for a subtraction
25        under subparagraph (S) of paragraph (2) of subsection (b)
26        of Section 203 shall  be  allowed  a  credit  under  this
27        subsection  (e)  equal  to its share of the credit earned
28        under this subsection (e) during the taxable year by  the
29        partnership  or  Subchapter  S corporation, determined in
30        accordance  with  the   determination   of   income   and
31        distributive  share  of income under Sections 702 and 704
32        and Subchapter S of  the  Internal  Revenue  Code.   This
33        paragraph is exempt from the provisions of Section 250.
34          (f)  Investment credit; Enterprise Zone.
 
                            -90-     LRB093 04198 SJM 04242 b
 1             (1)  A  taxpayer  shall  be allowed a credit against
 2        the tax imposed  by  subsections  (a)  and  (b)  of  this
 3        Section  for  investment  in  qualified property which is
 4        placed in service in an Enterprise Zone created  pursuant
 5        to  the  Illinois  Enterprise  Zone  Act.   For partners,
 6        shareholders of Subchapter S corporations, and owners  of
 7        limited  liability companies, if the liability company is
 8        treated as a partnership  for  purposes  of  federal  and
 9        State  income  taxation,  there shall be allowed a credit
10        under this subsection (f) to be determined in  accordance
11        with  the  determination of income and distributive share
12        of income under Sections 702 and 704 and Subchapter S  of
13        the  Internal  Revenue  Code.  The credit shall be .5% of
14        the  basis  for  such  property.   The  credit  shall  be
15        available only in the taxable year in which the  property
16        is placed in service in the Enterprise Zone and shall not
17        be   allowed  to  the  extent  that  it  would  reduce  a
18        taxpayer's liability for the tax imposed  by  subsections
19        (a) and (b) of this Section to below zero.  For tax years
20        ending on or after December 31, 1985, the credit shall be
21        allowed  for the tax year in which the property is placed
22        in service, or, if the amount of the credit  exceeds  the
23        tax  liability  for  that  year,  whether  it exceeds the
24        original liability or the  liability  as  later  amended,
25        such excess may be carried forward and applied to the tax
26        liability  of  the  5  taxable years following the excess
27        credit year.  The credit shall be applied to the earliest
28        year for which there is a liability.  If there is  credit
29        from more than one tax year that is available to offset a
30        liability,  the  credit  accruing  first in time shall be
31        applied first.
32             (2)  The  term  qualified  property  means  property
33        which:
34                  (A)  is  tangible,   whether   new   or   used,
 
                            -91-     LRB093 04198 SJM 04242 b
 1             including  buildings  and  structural  components of
 2             buildings;
 3                  (B)  is depreciable pursuant to Section 167  of
 4             the  Internal  Revenue  Code,  except  that  "3-year
 5             property" as defined in Section 168(c)(2)(A) of that
 6             Code is not eligible for the credit provided by this
 7             subsection (f);
 8                  (C)  is  acquired  by  purchase  as  defined in
 9             Section 179(d) of the Internal Revenue Code;
10                  (D)  is used in  the  Enterprise  Zone  by  the
11             taxpayer; and
12                  (E)  has  not  been previously used in Illinois
13             in such a manner and  by  such  a  person  as  would
14             qualify  for  the credit provided by this subsection
15             (f) or subsection (e).
16             (3)  The basis of qualified property  shall  be  the
17        basis  used  to  compute  the  depreciation deduction for
18        federal income tax purposes.
19             (4)  If the basis of the property for federal income
20        tax depreciation purposes is increased after it has  been
21        placed in service in the Enterprise Zone by the taxpayer,
22        the  amount  of  such  increase  shall be deemed property
23        placed in service on the date of such increase in basis.
24             (5)  The term "placed in  service"  shall  have  the
25        same  meaning as under Section 46 of the Internal Revenue
26        Code.
27             (6)  If during any taxable year, any property ceases
28        to be qualified property in the  hands  of  the  taxpayer
29        within  48  months  after being placed in service, or the
30        situs of any qualified  property  is  moved  outside  the
31        Enterprise  Zone  within  48 months after being placed in
32        service, the tax imposed under subsections (a) and (b) of
33        this Section for such taxable year  shall  be  increased.
34        Such  increase shall be determined by (i) recomputing the
 
                            -92-     LRB093 04198 SJM 04242 b
 1        investment credit which would have been allowed  for  the
 2        year  in  which  credit  for such property was originally
 3        allowed  by   eliminating   such   property   from   such
 4        computation,  and (ii) subtracting such recomputed credit
 5        from the amount of credit previously  allowed.   For  the
 6        purposes  of this paragraph (6), a reduction of the basis
 7        of qualified property resulting from a redetermination of
 8        the purchase price  shall  be  deemed  a  disposition  of
 9        qualified property to the extent of such reduction.
10          (g)  Jobs Tax Credit; Enterprise Zone and Foreign Trade
11    Zone or Sub-Zone.
12             (1)  A taxpayer conducting a trade or business in an
13        enterprise  zone  or a High Impact Business designated by
14        the  Department  of  Commerce   and   Community   Affairs
15        conducting  a trade or business in a federally designated
16        Foreign Trade Zone or Sub-Zone shall be allowed a  credit
17        against  the  tax  imposed  by subsections (a) and (b) of
18        this Section in the amount of $500 per eligible  employee
19        hired to work in the zone during the taxable year.
20             (2)  To qualify for the credit:
21                  (A)  the  taxpayer must hire 5 or more eligible
22             employees to work in an enterprise zone or federally
23             designated Foreign Trade Zone or Sub-Zone during the
24             taxable year;
25                  (B)  the taxpayer's total employment within the
26             enterprise  zone  or  federally  designated  Foreign
27             Trade Zone or Sub-Zone must increase by  5  or  more
28             full-time  employees  beyond  the  total employed in
29             that zone at the end of the previous  tax  year  for
30             which  a  jobs  tax  credit  under  this Section was
31             taken, or beyond the total employed by the  taxpayer
32             as of December 31, 1985, whichever is later; and
33                  (C)  the  eligible  employees  must be employed
34             180 consecutive days in order to be deemed hired for
 
                            -93-     LRB093 04198 SJM 04242 b
 1             purposes of this subsection.
 2             (3)  An "eligible employee" means  an  employee  who
 3        is:
 4                  (A)  Certified  by  the  Department of Commerce
 5             and Community Affairs  as  "eligible  for  services"
 6             pursuant  to  regulations  promulgated in accordance
 7             with Title II of the Job Training  Partnership  Act,
 8             Training Services for the Disadvantaged or Title III
 9             of  the Job Training Partnership Act, Employment and
10             Training Assistance for Dislocated Workers Program.
11                  (B)  Hired  after  the   enterprise   zone   or
12             federally  designated Foreign Trade Zone or Sub-Zone
13             was designated or the trade or business was  located
14             in that zone, whichever is later.
15                  (C)  Employed in the enterprise zone or Foreign
16             Trade  Zone  or Sub-Zone. An employee is employed in
17             an enterprise zone or federally  designated  Foreign
18             Trade  Zone or Sub-Zone if his services are rendered
19             there or it  is  the  base  of  operations  for  the
20             services performed.
21                  (D)  A  full-time  employee  working 30 or more
22             hours per week.
23             (4)  For tax years ending on or after  December  31,
24        1985  and prior to December 31, 1988, the credit shall be
25        allowed for the tax year in which the eligible  employees
26        are hired.  For tax years ending on or after December 31,
27        1988,  the  credit  shall  be  allowed  for  the tax year
28        immediately following the tax year in which the  eligible
29        employees are hired.  If the amount of the credit exceeds
30        the  tax  liability for that year, whether it exceeds the
31        original liability or the  liability  as  later  amended,
32        such excess may be carried forward and applied to the tax
33        liability  of  the  5  taxable years following the excess
34        credit year.  The credit shall be applied to the earliest
 
                            -94-     LRB093 04198 SJM 04242 b
 1        year for which there is a liability. If there  is  credit
 2        from more than one tax year that is available to offset a
 3        liability, earlier credit shall be applied first.
 4             (5)  The Department of Revenue shall promulgate such
 5        rules and regulations as may be deemed necessary to carry
 6        out the purposes of this subsection (g).
 7             (6)  The  credit  shall  be  available  for eligible
 8        employees hired on or after January 1, 1986.
 9        (h)  Investment credit; High Impact Business.
10             (1)  Subject to subsections (b) and (b-5) of Section
11        5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
12        be  allowed  a  credit  against  the   tax   imposed   by
13        subsections (a) and (b) of this Section for investment in
14        qualified  property  which  is  placed  in  service  by a
15        Department of Commerce and Community  Affairs  designated
16        High  Impact  Business.   The  credit shall be .5% of the
17        basis  for  such  property.   The  credit  shall  not  be
18        available (i) until the minimum investments in  qualified
19        property  set  forth  in subdivision (a)(3)(A) of Section
20        5.5  of  the  Illinois  Enterprise  Zone  Act  have  been
21        satisfied or (ii) until the time authorized in subsection
22        (b-5) of the Illinois Enterprise Zone  Act  for  entities
23        designated  as  High Impact Businesses under subdivisions
24        (a)(3)(B), (a)(3)(C), and (a)(3)(D) of Section 5.5 of the
25        Illinois Enterprise Zone Act, and shall not be allowed to
26        the extent that it would reduce  a  taxpayer's  liability
27        for  the  tax  imposed by subsections (a) and (b) of this
28        Section to below zero.  The  credit  applicable  to  such
29        investments  shall  be taken in the taxable year in which
30        such investments have been  completed.   The  credit  for
31        additional investments beyond the minimum investment by a
32        designated   high   impact   business   authorized  under
33        subdivision (a)(3)(A) of  Section  5.5  of  the  Illinois
34        Enterprise  Zone  Act  shall  be  available  only  in the
 
                            -95-     LRB093 04198 SJM 04242 b
 1        taxable year in which the property is placed  in  service
 2        and  shall  not  be  allowed  to the extent that it would
 3        reduce a taxpayer's liability  for  the  tax  imposed  by
 4        subsections  (a)  and  (b) of this Section to below zero.
 5        For tax years ending on or after December 31,  1987,  the
 6        credit  shall  be  allowed  for the tax year in which the
 7        property is placed in service, or, if the amount  of  the
 8        credit  exceeds  the tax liability for that year, whether
 9        it exceeds the original liability  or  the  liability  as
10        later  amended,  such  excess  may be carried forward and
11        applied to the tax  liability  of  the  5  taxable  years
12        following  the  excess  credit year.  The credit shall be
13        applied to  the  earliest  year  for  which  there  is  a
14        liability.   If  there  is  credit from more than one tax
15        year that is available to offset a liability, the  credit
16        accruing first in time shall be applied first.
17             Changes  made  in  this subdivision (h)(1) by Public
18        Act 88-670 restore changes made by Public Act 85-1182 and
19        reflect existing law.
20             (2)  The  term  qualified  property  means  property
21        which:
22                  (A)  is  tangible,   whether   new   or   used,
23             including  buildings  and  structural  components of
24             buildings;
25                  (B)  is depreciable pursuant to Section 167  of
26             the  Internal  Revenue  Code,  except  that  "3-year
27             property" as defined in Section 168(c)(2)(A) of that
28             Code is not eligible for the credit provided by this
29             subsection (h);
30                  (C)  is  acquired  by  purchase  as  defined in
31             Section 179(d) of the Internal Revenue Code; and
32                  (D)  is not eligible for  the  Enterprise  Zone
33             Investment Credit provided by subsection (f) of this
34             Section.
 
                            -96-     LRB093 04198 SJM 04242 b
 1             (3)  The  basis  of  qualified property shall be the
 2        basis used to  compute  the  depreciation  deduction  for
 3        federal income tax purposes.
 4             (4)  If the basis of the property for federal income
 5        tax  depreciation purposes is increased after it has been
 6        placed in service in a federally designated Foreign Trade
 7        Zone or Sub-Zone located in Illinois by the taxpayer, the
 8        amount of such increase shall be deemed  property  placed
 9        in service on the date of such increase in basis.
10             (5)  The  term  "placed  in  service" shall have the
11        same meaning as under Section 46 of the Internal  Revenue
12        Code.
13             (6)  If  during any taxable year ending on or before
14        December 31, 1996, any property ceases  to  be  qualified
15        property  in  the  hands of the taxpayer within 48 months
16        after being placed  in  service,  or  the  situs  of  any
17        qualified  property  is  moved outside Illinois within 48
18        months after being placed in  service,  the  tax  imposed
19        under  subsections  (a)  and (b) of this Section for such
20        taxable year shall be increased.  Such increase shall  be
21        determined by (i) recomputing the investment credit which
22        would  have been allowed for the year in which credit for
23        such property was originally allowed by eliminating  such
24        property from such computation, and (ii) subtracting such
25        recomputed  credit  from  the amount of credit previously
26        allowed.  For the  purposes  of  this  paragraph  (6),  a
27        reduction  of  the  basis of qualified property resulting
28        from a redetermination of the  purchase  price  shall  be
29        deemed  a disposition of qualified property to the extent
30        of such reduction.
31             (7)  Beginning with tax years ending after  December
32        31,  1996,  if  a taxpayer qualifies for the credit under
33        this  subsection  (h)  and  thereby  is  granted  a   tax
34        abatement  and the taxpayer relocates its entire facility
 
                            -97-     LRB093 04198 SJM 04242 b
 1        in violation of the explicit  terms  and  length  of  the
 2        contract  under  Section 18-183 of the Property Tax Code,
 3        the tax imposed under subsections (a)  and  (b)  of  this
 4        Section  shall be increased for the taxable year in which
 5        the taxpayer relocated its facility by an amount equal to
 6        the amount of credit received by the taxpayer under  this
 7        subsection (h).
 8        (i)  Credit  for Personal Property Tax Replacement Income
 9    Tax.  A credit shall be allowed against the  tax  imposed  by
10    subsections  (a)  and (b) of this Section for the tax imposed
11    by subsections (c) and (d)  of  this  Section.   This  credit
12    shall   be   computed  by  multiplying  the  tax  imposed  by
13    subsections (c) and (d) of this Section by  a  fraction,  the
14    numerator  of  which is base income allocable to Illinois and
15    the denominator of which is Illinois base income, and further
16    multiplying  the  product  by  the  tax   rate   imposed   by
17    subsections (a) and (b) of this Section.
18        Any  credit  earned  on  or after December 31, 1986 under
19    this subsection which is unused in the  year  the  credit  is
20    computed  because  it  exceeds  the  tax liability imposed by
21    subsections (a) and (b) for that year (whether it exceeds the
22    original liability or the liability as later amended) may  be
23    carried  forward  and applied to the tax liability imposed by
24    subsections (a) and (b) of the 5 taxable years following  the
25    excess  credit  year.   This credit shall be applied first to
26    the earliest year for which there is a liability.   If  there
27    is a credit under this subsection from more than one tax year
28    that  is  available to offset a liability the earliest credit
29    arising under this subsection shall be applied first.
30        If, during any taxable year ending on or  after  December
31    31,  1986, the tax imposed by subsections (c) and (d) of this
32    Section for which a taxpayer has claimed a credit under  this
33    subsection  (i) is reduced, the amount of credit for such tax
34    shall also be reduced.  Such reduction shall be determined by
 
                            -98-     LRB093 04198 SJM 04242 b
 1    recomputing the credit to take into account the  reduced  tax
 2    imposed  by  subsections  (c) and (d).  If any portion of the
 3    reduced amount of credit has  been  carried  to  a  different
 4    taxable  year,  an  amended  return  shall  be filed for such
 5    taxable year to reduce the amount of credit claimed.
 6        (j)  Training expense credit.  Beginning with  tax  years
 7    ending  on  or  after  December 31, 1986, a taxpayer shall be
 8    allowed a credit against the tax imposed by  subsections  (a)
 9    and  (b)  under this Section for all amounts paid or accrued,
10    on behalf of all persons employed by the taxpayer in Illinois
11    or Illinois residents  employed  outside  of  Illinois  by  a
12    taxpayer,   for   educational   or   vocational  training  in
13    semi-technical or technical fields or semi-skilled or skilled
14    fields,  which  were  deducted  from  gross  income  in   the
15    computation  of  taxable  income.  The credit against the tax
16    imposed by subsections (a) and (b)  shall  be  1.6%  of  such
17    training  expenses.  For partners, shareholders of subchapter
18    S corporations, and owners of limited liability companies, if
19    the  liability  company  is  treated  as  a  partnership  for
20    purposes of federal and State income taxation, there shall be
21    allowed a credit under this subsection (j) to  be  determined
22    in   accordance   with   the   determination  of  income  and
23    distributive share of income under Sections 702 and  704  and
24    subchapter S of the Internal Revenue Code.
25        Any  credit allowed under this subsection which is unused
26    in the year the credit is earned may be  carried  forward  to
27    each  of the 5 taxable years following the year for which the
28    credit is first computed until it is used.  This credit shall
29    be applied first to the earliest year for which  there  is  a
30    liability.   If  there is a credit under this subsection from
31    more than  one  tax  year  that  is  available  to  offset  a
32    liability  the  earliest credit arising under this subsection
33    shall be applied first.
34        (k)  Research and development credit.
 
                            -99-     LRB093 04198 SJM 04242 b
 1        Beginning with tax years ending after  July  1,  1990,  a
 2    taxpayer shall be allowed a credit against the tax imposed by
 3    subsections  (a)  and  (b)  of  this  Section  for increasing
 4    research  activities  in  this  State.   The  credit  allowed
 5    against the tax imposed by subsections (a) and (b)  shall  be
 6    equal to 6 1/2% of the qualifying expenditures for increasing
 7    research   activities   in   this   State.    For   partners,
 8    shareholders  of  subchapter  S  corporations,  and owners of
 9    limited liability companies,  if  the  liability  company  is
10    treated  as  a  partnership for purposes of federal and State
11    income taxation, there shall be allowed a credit  under  this
12    subsection   to   be   determined   in  accordance  with  the
13    determination of income  and  distributive  share  of  income
14    under  Sections  702 and 704 and subchapter S of the Internal
15    Revenue Code.
16        For   purposes   of    this    subsection,    "qualifying
17    expenditures"  means  the  qualifying expenditures as defined
18    for the federal credit  for  increasing  research  activities
19    which  would  be  allowable  under Section 41 of the Internal
20    Revenue  Code  and  which  are  conducted  in   this   State,
21    "qualifying  expenditures  for increasing research activities
22    in this State" means the excess  of  qualifying  expenditures
23    for  the  taxable  year  in  which  incurred  over qualifying
24    expenditures for the base  period,  "qualifying  expenditures
25    for  the  base  period"  means  the average of the qualifying
26    expenditures for each year in  the  base  period,  and  "base
27    period"  means  the 3 taxable years immediately preceding the
28    taxable year for which the determination is being made.
29        Any credit in excess of the tax liability for the taxable
30    year may be carried forward. A taxpayer may elect to have the
31    unused credit shown on its  final  completed  return  carried
32    over  as a credit against the tax liability for the following
33    5 taxable years or until it has been  fully  used,  whichever
34    occurs first.
 
                            -100-    LRB093 04198 SJM 04242 b
 1        If  an  unused  credit is carried forward to a given year
 2    from 2 or more earlier years,  that  credit  arising  in  the
 3    earliest year will be applied first against the tax liability
 4    for  the  given  year.  If a tax liability for the given year
 5    still remains, the credit from the next  earliest  year  will
 6    then  be applied, and so on, until all credits have been used
 7    or  no  tax  liability  for  the  given  year  remains.   Any
 8    remaining unused credit  or  credits  then  will  be  carried
 9    forward  to  the next following year in which a tax liability
10    is incurred, except that no credit can be carried forward  to
11    a year which is more than 5 years after the year in which the
12    expense for which the credit is given was incurred.
13        Unless  extended  by  law,  the  credit shall not include
14    costs incurred after December  31,  2004,  except  for  costs
15    incurred  pursuant  to  a binding contract entered into on or
16    before December 31, 2004.
17        No inference shall be drawn from this amendatory  Act  of
18    the  91st  General  Assembly  in  construing this Section for
19    taxable years beginning before January 1, 1999.
20        (l)  Environmental Remediation Tax Credit.
21             (i)  For tax  years ending after December  31,  1997
22        and  on  or before December 31, 2001, a taxpayer shall be
23        allowed a credit against the tax imposed  by  subsections
24        (a)  and (b) of this Section for certain amounts paid for
25        unreimbursed eligible remediation costs, as specified  in
26        this   subsection.   For   purposes   of   this  Section,
27        "unreimbursed eligible  remediation  costs"  means  costs
28        approved  by the Illinois Environmental Protection Agency
29        ("Agency")  under  Section  58.14  of  the  Environmental
30        Protection Act that were paid in performing environmental
31        remediation at a site for which a No Further  Remediation
32        Letter  was  issued  by  the  Agency  and  recorded under
33        Section 58.10 of the Environmental Protection  Act.   The
34        credit  must  be  claimed  for  the taxable year in which
 
                            -101-    LRB093 04198 SJM 04242 b
 1        Agency approval of  the  eligible  remediation  costs  is
 2        granted.   The credit is not available to any taxpayer if
 3        the taxpayer or any related party caused  or  contributed
 4        to,  in  any  material  respect,  a  release of regulated
 5        substances on, in, or under the site that was  identified
 6        and addressed by the remedial action pursuant to the Site
 7        Remediation  Program of the Environmental Protection Act.
 8        After the  Pollution  Control  Board  rules  are  adopted
 9        pursuant to the Illinois Administrative Procedure Act for
10        the administration and enforcement of Section 58.9 of the
11        Environmental Protection Act, determinations as to credit
12        availability  for  purposes of this Section shall be made
13        consistent  with  those  rules.   For  purposes  of  this
14        Section,  "taxpayer"  includes   a   person   whose   tax
15        attributes  the  taxpayer  has succeeded to under Section
16        381 of the Internal  Revenue  Code  and  "related  party"
17        includes the persons disallowed a deduction for losses by
18        paragraphs  (b),  (c),  and  (f)(1) of Section 267 of the
19        Internal Revenue  Code  by  virtue  of  being  a  related
20        taxpayer,  as  well  as  any of its partners.  The credit
21        allowed against the tax imposed by  subsections  (a)  and
22        (b)  shall  be  equal to 25% of the unreimbursed eligible
23        remediation costs in excess of $100,000 per site,  except
24        that  the  $100,000 threshold shall not apply to any site
25        contained in an enterprise  zone  as  determined  by  the
26        Department  of Commerce and Community Affairs.  The total
27        credit allowed shall not exceed $40,000 per year  with  a
28        maximum  total  of  $150,000  per site.  For partners and
29        shareholders of subchapter S corporations, there shall be
30        allowed a credit under this subsection to  be  determined
31        in  accordance  with  the  determination  of  income  and
32        distributive  share  of income under Sections 702 and 704
33        and subchapter S of the Internal Revenue Code.
34             (ii)  A credit allowed under this subsection that is
 
                            -102-    LRB093 04198 SJM 04242 b
 1        unused in the year the credit is earned  may  be  carried
 2        forward to each of the 5 taxable years following the year
 3        for  which  the  credit is first earned until it is used.
 4        The term "unused credit" does not include any amounts  of
 5        unreimbursed  eligible remediation costs in excess of the
 6        maximum credit per site authorized under  paragraph  (i).
 7        This  credit  shall be applied first to the earliest year
 8        for which there is a liability.  If  there  is  a  credit
 9        under this subsection from more than one tax year that is
10        available  to  offset  a  liability,  the earliest credit
11        arising under this subsection shall be applied first.   A
12        credit  allowed  under  this  subsection may be sold to a
13        buyer as part of a sale of all or part of the remediation
14        site for which the credit was granted.  The purchaser  of
15        a  remediation  site  and the tax credit shall succeed to
16        the unused credit and remaining carry-forward  period  of
17        the  seller.  To perfect the transfer, the assignor shall
18        record the transfer in the chain of title  for  the  site
19        and  provide  written  notice  to  the  Director  of  the
20        Illinois  Department  of Revenue of the assignor's intent
21        to sell the remediation site and the amount  of  the  tax
22        credit to be transferred as a portion of the sale.  In no
23        event  may a credit be transferred to any taxpayer if the
24        taxpayer or a related party would not be  eligible  under
25        the provisions of subsection (i).
26             (iii)  For purposes of this Section, the term "site"
27        shall  have the same meaning as under Section 58.2 of the
28        Environmental Protection Act.
29        (m)  Education expense credit.  Beginning with tax  years
30    ending  after  December  31,  1999,  a  taxpayer  who  is the
31    custodian of one or more qualifying pupils shall be allowed a
32    credit against the tax imposed by subsections (a) and (b)  of
33    this  Section  for  qualified  education expenses incurred on
34    behalf of the qualifying pupils.  The credit shall  be  equal
 
                            -103-    LRB093 04198 SJM 04242 b
 1    to  25%  of qualified education expenses, but in no event may
 2    the total credit under this subsection claimed  by  a  family
 3    that  is  the custodian of qualifying pupils exceed $500.  In
 4    no event shall a credit  under  this  subsection  reduce  the
 5    taxpayer's  liability under this Act to less than zero.  This
 6    subsection is exempt from the provisions of  Section  250  of
 7    this Act.
 8        For purposes of this subsection:
 9        "Qualifying   pupils"   means  individuals  who  (i)  are
10    residents of the State of Illinois, (ii) are under the age of
11    21 at the close of the school year  for  which  a  credit  is
12    sought,  and  (iii) during the school year for which a credit
13    is sought were full-time pupils enrolled  in  a  kindergarten
14    through  twelfth  grade  education  program at any school, as
15    defined in this subsection.
16        "Qualified education expense" means the  amount  incurred
17    on  behalf  of  a  qualifying  pupil  in  excess  of $250 for
18    tuition, book fees, and lab fees at the school in  which  the
19    pupil is enrolled during the regular school year.
20        "School"  means  any  public  or  nonpublic elementary or
21    secondary school in Illinois that is in compliance with Title
22    VI of the Civil Rights Act of 1964 and  attendance  at  which
23    satisfies  the  requirements  of  Section  26-1 of the School
24    Code, except that nothing shall be  construed  to  require  a
25    child  to attend any particular public or nonpublic school to
26    qualify for the credit under this Section.
27        "Custodian" means, with respect to qualifying pupils,  an
28    Illinois  resident  who  is  a  parent,  the parents, a legal
29    guardian, or the legal guardians of the qualifying pupils.
30    (Source:  P.A.  91-9,  eff.  1-1-00;  91-357,  eff.  7-29-99;
31    91-643, eff. 8-20-99;  91-644,  eff.  8-20-99;  91-860,  eff.
32    6-22-00; 91-913, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
33    6-28-01; 92-651, eff. 7-11-02; 92-846, eff. 8-23-02.)
 
                            -104-    LRB093 04198 SJM 04242 b
 1        (35 ILCS 5/202.5 new)
 2        Sec.  202.5.  Net income attributable to the period prior
 3    to July 1, 2003 and net income  attributable  to  the  period
 4    after June 30, 2003.
 5        (a)  In  general.  With  respect to the taxable year of a
 6    taxpayer beginning prior to July 1,  2003  and  ending  after
 7    June  30, 2003, net income for the period after June 30, 2003
 8    shall be that amount  which  bears  the  same  ratio  to  the
 9    taxpayer's  net  income  for  the  entire taxable year as the
10    number of days in such year after June 30, 2003 bears to  the
11    total number of days in such year, and the net income for the
12    period prior to July 1, 2003 shall be that amount which bears
13    the  same  ratio  to the taxpayer's net income for the entire
14    taxable year as the number of days in such year prior to July
15    1, 2003 bears to the total number of days in such year.
16        (b)  Election to attribute  income  and  deduction  items
17    specifically  to  the  respective  portions of a taxable year
18    prior to July 1, 2003 and after June 30, 2003. In the case of
19    a taxpayer with a taxable year beginning  prior  to  July  1,
20    2003  and ending after June 30, 2003, the taxpayer may elect,
21    in lieu of the procedure established  in  subsection  (a)  of
22    this   Section,   to  determine  net  income  on  a  specific
23    accounting basis for the 2 portions of  his  or  her  taxable
24    year:
25             (i)  from  the beginning of the taxable year through
26        June 30, 2003; and
27             (ii)  from July 1,  2003  through  the  end  of  the
28        taxable year.
29        If  the  taxpayer  elects  specific accounting under this
30    subsection, there shall be taken into  account  in  computing
31    base  income  for  each of the 2 portions of the taxable year
32    only those items earned, received, paid, incurred, or accrued
33    in each such  period.  The  standard  exemption  provided  by
34    Section  204  shall be divided between the respective periods
 
                            -105-    LRB093 04198 SJM 04242 b
 1    in amounts that bear the same ratio to  the  total  exemption
 2    allowable  under  Section  204  (determined without regard to
 3    this Section) as the total number of days in each such period
 4    bears to the total number of days in the  taxable  year.  The
 5    election  provided  by  this subsection shall be made in such
 6    manner and at such time as the Department  may  by  forms  or
 7    regulations  prescribe,  but shall be made not later than the
 8    due date (including any extensions thereof) for the filing of
 9    the return for the taxable year, and shall be irrevocable.

10        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
11        Sec. 203.  Base income defined.
12        (a)  Individuals.
13             (1)  In general.  In the case of an individual, base
14        income means an amount equal to the  taxpayer's  adjusted
15        gross   income  for  the  taxable  year  as  modified  by
16        paragraph (2).
17             (2)  Modifications.   The  adjusted   gross   income
18        referred  to in paragraph (1) shall be modified by adding
19        thereto the sum of the following amounts:
20                  (A)  An amount equal to  all  amounts  paid  or
21             accrued  to  the  taxpayer  as interest or dividends
22             during the taxable year to the extent excluded  from
23             gross  income  in  the computation of adjusted gross
24             income, except stock dividends of  qualified  public
25             utilities   described   in  Section  305(e)  of  the
26             Internal Revenue Code;
27                  (B)  An amount  equal  to  the  amount  of  tax
28             imposed  by  this  Act  to  the extent deducted from
29             gross income in the computation  of  adjusted  gross
30             income for the taxable year;
31                  (C)  An  amount  equal  to  the amount received
32             during the taxable year as a recovery or  refund  of
33             real   property  taxes  paid  with  respect  to  the
 
                            -106-    LRB093 04198 SJM 04242 b
 1             taxpayer's principal residence under the Revenue Act
 2             of 1939 and for which  a  deduction  was  previously
 3             taken  under  subparagraph (L) of this paragraph (2)
 4             prior to July 1, 1991, the retrospective application
 5             date of Article 4 of Public Act 87-17.  In the  case
 6             of  multi-unit  or  multi-use  structures  and  farm
 7             dwellings,  the  taxes  on  the taxpayer's principal
 8             residence shall be that portion of the  total  taxes
 9             for  the  entire  property  which is attributable to
10             such principal residence;
11                  (D)  An amount  equal  to  the  amount  of  the
12             capital  gain deduction allowable under the Internal
13             Revenue Code, to  the  extent  deducted  from  gross
14             income in the computation of adjusted gross income;
15                  (D-5)  An amount, to the extent not included in
16             adjusted  gross income, equal to the amount of money
17             withdrawn by the taxpayer in the taxable year from a
18             medical care savings account and the interest earned
19             on the account in the taxable year of  a  withdrawal
20             pursuant  to  subsection  (b)  of  Section 20 of the
21             Medical Care Savings Account Act or  subsection  (b)
22             of  Section  20  of the Medical Care Savings Account
23             Act of 2000;
24                  (D-10)  For taxable years ending after December
25             31,  1997,  an  amount   equal   to   any   eligible
26             remediation  costs  that  the individual deducted in
27             computing adjusted gross income and  for  which  the
28             individual  claims  a credit under subsection (l) of
29             Section 201;
30                  (D-15)  For taxable years 2001 and  thereafter,
31             an  amount equal to the bonus depreciation deduction
32             (30%  of  the  adjusted  basis  of   the   qualified
33             property) taken on the taxpayer's federal income tax
34             return  for the taxable year under subsection (k) of
 
                            -107-    LRB093 04198 SJM 04242 b
 1             Section 168 of the Internal Revenue Code; and
 2                  (D-16)  If the taxpayer reports a capital  gain
 3             or  loss on the taxpayer's federal income tax return
 4             for the taxable year based on a sale or transfer  of
 5             property  for which the taxpayer was required in any
 6             taxable year to make an addition modification  under
 7             subparagraph  (D-15),  then  an  amount equal to the
 8             aggregate amount of  the  deductions  taken  in  all
 9             taxable years under subparagraph (Z) with respect to
10             that property.;
11                  The  taxpayer  is required to make the addition
12             modification under this subparagraph only once  with
13             respect to any one piece of property;. and
14                  (D-20)  (D-15)  For  taxable years beginning on
15             or  after  January  1,  2002,  in  the  case  of   a
16             distribution  from a qualified tuition program under
17             Section 529 of the Internal Revenue Code, other than
18             (i) a  distribution  from  a  College  Savings  Pool
19             created  under  Section  16.5 of the State Treasurer
20             Act or (ii) a distribution from the Illinois Prepaid
21             Tuition Trust Fund, an amount equal  to  the  amount
22             excluded    from    gross   income   under   Section
23             529(c)(3)(B);
24        and by deducting from the total so obtained  the  sum  of
25        the following amounts:
26                  (E)  For  taxable  years ending before December
27             31, 2001, any  amount  included  in  such  total  in
28             respect  of  any  compensation  (including  but  not
29             limited  to  any  compensation  paid or accrued to a
30             serviceman while a prisoner of  war  or  missing  in
31             action)  paid  to  a  resident by reason of being on
32             active duty in the Armed Forces of the United States
33             and in respect of any compensation paid  or  accrued
34             to  a  resident who as a governmental employee was a
 
                            -108-    LRB093 04198 SJM 04242 b
 1             prisoner of war or missing in action, and in respect
 2             of any compensation paid to a resident  in  1971  or
 3             thereafter for annual training performed pursuant to
 4             Sections  502  and 503, Title 32, United States Code
 5             as a member of  the  Illinois  National  Guard.  For
 6             taxable  years ending on or after December 31, 2001,
 7             any amount included in such total in respect of  any
 8             compensation  (including  but  not  limited  to  any
 9             compensation paid or accrued to a serviceman while a
10             prisoner  of  war  or  missing  in action) paid to a
11             resident  by  reason  of  being  a  member  of   any
12             component  of  the Armed Forces of the United States
13             and in respect of any compensation paid  or  accrued
14             to  a  resident who as a governmental employee was a
15             prisoner of war or missing in action, and in respect
16             of any compensation paid to a resident  in  2001  or
17             thereafter  by  reason  of  being  a  member  of the
18             Illinois National  Guard.  The  provisions  of  this
19             amendatory  Act  of  the  92nd  General Assembly are
20             exempt from the provisions of Section 250;
21                  (F)  An amount equal to all amounts included in
22             such total pursuant to the  provisions  of  Sections
23             402(a),  402(c), 403(a), 403(b), 406(a), 407(a), and
24             408 of the Internal Revenue  Code,  or  included  in
25             such  total as distributions under the provisions of
26             any retirement or disability plan for  employees  of
27             any  governmental  agency  or  unit,  or  retirement
28             payments  to  retired  partners,  which payments are
29             excluded  in  computing  net  earnings   from   self
30             employment  by  Section 1402 of the Internal Revenue
31             Code and regulations adopted pursuant thereto;
32                  (G)  The valuation limitation amount;
33                  (H)  An amount equal to the amount of  any  tax
34             imposed  by  this  Act  which  was  refunded  to the
 
                            -109-    LRB093 04198 SJM 04242 b
 1             taxpayer and included in such total for the  taxable
 2             year;
 3                  (I)  An amount equal to all amounts included in
 4             such total pursuant to the provisions of Section 111
 5             of  the Internal Revenue Code as a recovery of items
 6             previously deducted from adjusted  gross  income  in
 7             the computation of taxable income;
 8                  (J)  An   amount   equal   to  those  dividends
 9             included  in  such  total  which  were  paid  by   a
10             corporation which conducts business operations in an
11             Enterprise  Zone or zones created under the Illinois
12             Enterprise Zone Act, and conducts substantially  all
13             of its operations in an Enterprise Zone or zones;
14                  (K)  An   amount   equal   to  those  dividends
15             included  in  such  total  that  were  paid   by   a
16             corporation  that  conducts business operations in a
17             federally designated Foreign Trade Zone or  Sub-Zone
18             and  that  is  designated  a  High  Impact  Business
19             located   in   Illinois;   provided  that  dividends
20             eligible for the deduction provided in  subparagraph
21             (J) of paragraph (2) of this subsection shall not be
22             eligible  for  the  deduction  provided  under  this
23             subparagraph (K);
24                  (L)  For  taxable  years  ending after December
25             31, 1983, an amount equal  to  all  social  security
26             benefits  and  railroad retirement benefits included
27             in such total pursuant to Sections 72(r) and  86  of
28             the Internal Revenue Code;
29                  (M)  With   the   exception   of   any  amounts
30             subtracted under subparagraph (N), an  amount  equal
31             to  the  sum of all amounts disallowed as deductions
32             by (i)  Sections  171(a)  (2),  and  265(2)  of  the
33             Internal  Revenue  Code of 1954, as now or hereafter
34             amended, and all amounts of  expenses  allocable  to
 
                            -110-    LRB093 04198 SJM 04242 b
 1             interest  and   disallowed  as deductions by Section
 2             265(1) of the Internal Revenue Code of 1954, as  now
 3             or  hereafter  amended;  and  (ii) for taxable years
 4             ending  on  or  after  August  13,  1999,   Sections
 5             171(a)(2),  265,  280C,  and  832(b)(5)(B)(i) of the
 6             Internal  Revenue  Code;  the  provisions  of   this
 7             subparagraph  are  exempt  from  the  provisions  of
 8             Section 250;
 9                  (N)  An amount equal to all amounts included in
10             such  total  which  are exempt from taxation by this
11             State  either  by  reason   of   its   statutes   or
12             Constitution  or  by  reason  of  the  Constitution,
13             treaties  or statutes of the United States; provided
14             that, in the case of any statute of this State  that
15             exempts   income   derived   from   bonds  or  other
16             obligations from the tax imposed under this Act, the
17             amount exempted shall be the interest  net  of  bond
18             premium amortization;
19                  (O)  An  amount  equal to any contribution made
20             to a job training project  established  pursuant  to
21             the Tax Increment Allocation Redevelopment Act;
22                  (P)  An  amount  equal  to  the  amount  of the
23             deduction used to compute  the  federal  income  tax
24             credit  for  restoration of substantial amounts held
25             under claim of right for the taxable  year  pursuant
26             to  Section  1341  of  the  Internal Revenue Code of
27             1986;
28                  (Q)  An amount equal to any amounts included in
29             such  total,  received  by  the   taxpayer   as   an
30             acceleration  in  the  payment of life, endowment or
31             annuity benefits in advance of the time  they  would
32             otherwise  be payable as an indemnity for a terminal
33             illness;
34                  (R)  An amount  equal  to  the  amount  of  any
 
                            -111-    LRB093 04198 SJM 04242 b
 1             federal  or  State  bonus  paid  to  veterans of the
 2             Persian Gulf War;
 3                  (S)  An  amount,  to  the  extent  included  in
 4             adjusted gross income, equal  to  the  amount  of  a
 5             contribution  made  in the taxable year on behalf of
 6             the taxpayer  to  a  medical  care  savings  account
 7             established  under  the Medical Care Savings Account
 8             Act or the Medical Care Savings Account Act of  2000
 9             to  the  extent  the contribution is accepted by the
10             account administrator as provided in that Act;
11                  (T)  An  amount,  to  the  extent  included  in
12             adjusted  gross  income,  equal  to  the  amount  of
13             interest earned in the taxable  year  on  a  medical
14             care  savings  account established under the Medical
15             Care Savings Account Act or the Medical Care Savings
16             Account Act of 2000 on behalf of the taxpayer, other
17             than interest added pursuant to item (D-5)  of  this
18             paragraph (2);
19                  (U)  For one taxable year beginning on or after
20             January 1, 1994, an amount equal to the total amount
21             of  tax  imposed  and paid under subsections (a) and
22             (b) of Section 201 of  this  Act  on  grant  amounts
23             received  by  the  taxpayer  under  the Nursing Home
24             Grant Assistance Act during the  taxpayer's  taxable
25             years 1992 and 1993;
26                  (V)  Beginning  with  tax  years  ending  on or
27             after December 31, 1995 and ending  with  tax  years
28             ending  on  or  before  December 31, 2004, an amount
29             equal to the amount paid by  a  taxpayer  who  is  a
30             self-employed  taxpayer, a partner of a partnership,
31             or a shareholder in a Subchapter S  corporation  for
32             health  insurance  or  long-term  care insurance for
33             that  taxpayer  or   that   taxpayer's   spouse   or
34             dependents,  to  the extent that the amount paid for
 
                            -112-    LRB093 04198 SJM 04242 b
 1             that health insurance or  long-term  care  insurance
 2             may  be  deducted  under Section 213 of the Internal
 3             Revenue Code of 1986, has not been deducted  on  the
 4             federal  income tax return of the taxpayer, and does
 5             not exceed the taxable income attributable  to  that
 6             taxpayer's   income,   self-employment   income,  or
 7             Subchapter S  corporation  income;  except  that  no
 8             deduction  shall  be  allowed under this item (V) if
 9             the taxpayer  is  eligible  to  participate  in  any
10             health insurance or long-term care insurance plan of
11             an  employer  of  the  taxpayer  or  the  taxpayer's
12             spouse.   The  amount  of  the  health insurance and
13             long-term care insurance subtracted under this  item
14             (V)  shall be determined by multiplying total health
15             insurance and long-term care insurance premiums paid
16             by the taxpayer times a number that  represents  the
17             fractional  percentage  of eligible medical expenses
18             under Section 213 of the Internal  Revenue  Code  of
19             1986 not actually deducted on the taxpayer's federal
20             income tax return;
21                  (W)  For  taxable  years  beginning on or after
22             January  1,  1998,  all  amounts  included  in   the
23             taxpayer's  federal gross income in the taxable year
24             from amounts converted from a regular IRA to a  Roth
25             IRA. This paragraph is exempt from the provisions of
26             Section 250;
27                  (X)  For  taxable  year 1999 and thereafter, an
28             amount equal to the amount of any (i) distributions,
29             to the extent includible in gross income for federal
30             income tax purposes, made to the taxpayer because of
31             his or her status as a  victim  of  persecution  for
32             racial  or  religious reasons by Nazi Germany or any
33             other Axis regime or as an heir of  the  victim  and
34             (ii)  items  of  income, to the extent includible in
 
                            -113-    LRB093 04198 SJM 04242 b
 1             gross  income  for  federal  income  tax   purposes,
 2             attributable  to, derived from or in any way related
 3             to assets stolen from,  hidden  from,  or  otherwise
 4             lost  to  a  victim  of  persecution  for  racial or
 5             religious reasons by Nazi Germany or any other  Axis
 6             regime immediately prior to, during, and immediately
 7             after  World  War II, including, but not limited to,
 8             interest on the  proceeds  receivable  as  insurance
 9             under policies issued to a victim of persecution for
10             racial  or  religious reasons by Nazi Germany or any
11             other Axis regime by  European  insurance  companies
12             immediately  prior  to  and  during  World  War  II;
13             provided,  however,  this  subtraction  from federal
14             adjusted gross  income  does  not  apply  to  assets
15             acquired  with such assets or with the proceeds from
16             the sale of such  assets;  provided,  further,  this
17             paragraph shall only apply to a taxpayer who was the
18             first  recipient of such assets after their recovery
19             and who is a victim of  persecution  for  racial  or
20             religious  reasons by Nazi Germany or any other Axis
21             regime or as an heir of the victim.  The  amount  of
22             and  the  eligibility  for  any  public  assistance,
23             benefit,  or  similar entitlement is not affected by
24             the  inclusion  of  items  (i)  and  (ii)  of   this
25             paragraph  in  gross  income  for federal income tax
26             purposes.  This  paragraph  is   exempt   from   the
27             provisions of Section 250;
28                  (Y)  For  taxable  years  beginning on or after
29             January 1, 2002, moneys contributed in  the  taxable
30             year to a College Savings Pool account under Section
31             16.5 of the State Treasurer Act, except that amounts
32             excluded    from    gross   income   under   Section
33             529(c)(3)(C)(i) of the Internal Revenue  Code  shall
34             not  be  considered  moneys  contributed  under this
 
                            -114-    LRB093 04198 SJM 04242 b
 1             subparagraph (Y).  This subparagraph (Y)  is  exempt
 2             from the provisions of Section 250;
 3                  (Z)  For taxable years 2001 and thereafter, for
 4             the  taxable  year  in  which the bonus depreciation
 5             deduction  (30%  of  the  adjusted  basis   of   the
 6             qualified  property)  is  taken  on  the  taxpayer's
 7             federal  income  tax  return under subsection (k) of
 8             Section 168 of the Internal  Revenue  Code  and  for
 9             each  applicable  taxable year thereafter, an amount
10             equal to "x", where:
11                       (1)  "y"  equals   the   amount   of   the
12                  depreciation  deduction  taken  for the taxable
13                  year  on  the  taxpayer's  federal  income  tax
14                  return  on  property  for   which   the   bonus
15                  depreciation  deduction  (30%  of  the adjusted
16                  basis of the qualified property) was  taken  in
17                  any year under subsection (k) of Section 168 of
18                  the  Internal  Revenue  Code, but not including
19                  the bonus depreciation deduction; and
20                       (2)  "x" equals "y" multiplied by  30  and
21                  then  divided  by  70  (or  "y"  multiplied  by
22                  0.429).
23                  The   aggregate   amount  deducted  under  this
24             subparagraph in all taxable years for any one  piece
25             of  property  may not exceed the amount of the bonus
26             depreciation deduction (30% of the adjusted basis of
27             the qualified property) taken on  that  property  on
28             the  taxpayer's  federal  income  tax  return  under
29             subsection  (k)  of  Section  168  of  the  Internal
30             Revenue Code; and
31                  (AA)  If the taxpayer reports a capital gain or
32             loss on the taxpayer's federal income tax return for
33             the  taxable  year  based  on  a sale or transfer of
34             property for which the taxpayer was required in  any
 
                            -115-    LRB093 04198 SJM 04242 b
 1             taxable  year to make an addition modification under
 2             subparagraph (D-15), then an amount  equal  to  that
 3             addition modification.
 4                  The  taxpayer  is allowed to take the deduction
 5             under this subparagraph only once  with  respect  to
 6             any one piece of property; and
 7                  (BB) (Z)  Any amount included in adjusted gross
 8             income, other than salary, received by a driver in a
 9             ridesharing arrangement using a motor vehicle; and
10                  (CC)  Beginning  with  tax  years  ending on or
11             after December 31, 2003 and ending  with  tax  years
12             ending  on  or  before December 30, 2008, an amount,
13             not to exceed $1,200, equal  to  15%  of  the  total
14             amount  of rent paid by the taxpayer during the year
15             for  the  principal  place  of  residence   of   the
16             taxpayer.

17        (b)  Corporations.
18             (1)  In general.  In the case of a corporation, base
19        income  means  an  amount equal to the taxpayer's taxable
20        income for the taxable year as modified by paragraph (2).
21             (2)  Modifications.  The taxable income referred  to
22        in  paragraph (1) shall be modified by adding thereto the
23        sum of the following amounts:
24                  (A)  An amount equal to  all  amounts  paid  or
25             accrued   to   the  taxpayer  as  interest  and  all
26             distributions  received  from  regulated  investment
27             companies during the  taxable  year  to  the  extent
28             excluded  from  gross  income  in the computation of
29             taxable income;
30                  (B)  An amount  equal  to  the  amount  of  tax
31             imposed  by  this  Act  to  the extent deducted from
32             gross income in the computation  of  taxable  income
33             for the taxable year;
34                  (C)  In  the  case  of  a  regulated investment
 
                            -116-    LRB093 04198 SJM 04242 b
 1             company, an amount equal to the excess  of  (i)  the
 2             net  long-term  capital  gain  for the taxable year,
 3             over (ii) the amount of the capital  gain  dividends
 4             designated   as  such  in  accordance  with  Section
 5             852(b)(3)(C) of the Internal Revenue  Code  and  any
 6             amount  designated under Section 852(b)(3)(D) of the
 7             Internal Revenue Code, attributable to  the  taxable
 8             year (this amendatory Act of 1995 (Public Act 89-89)
 9             is  declarative  of  existing  law  and is not a new
10             enactment);
11                  (D)  The  amount  of  any  net  operating  loss
12             deduction taken in arriving at taxable income, other
13             than a net operating loss  carried  forward  from  a
14             taxable year ending prior to December 31, 1986;
15                  (E)  For taxable years in which a net operating
16             loss  carryback  or carryforward from a taxable year
17             ending prior to December 31, 1986 is an  element  of
18             taxable income under paragraph (1) of subsection (e)
19             or  subparagraph  (E) of paragraph (2) of subsection
20             (e), the  amount  by  which  addition  modifications
21             other  than  those provided by this subparagraph (E)
22             exceeded subtraction modifications in  such  earlier
23             taxable year, with the following limitations applied
24             in the order that they are listed:
25                       (i)  the addition modification relating to
26                  the  net operating loss carried back or forward
27                  to the  taxable  year  from  any  taxable  year
28                  ending  prior  to  December  31,  1986 shall be
29                  reduced by the amount of addition  modification
30                  under  this  subparagraph  (E) which related to
31                  that net operating loss  and  which  was  taken
32                  into  account in calculating the base income of
33                  an earlier taxable year, and
34                       (ii)  the addition  modification  relating
 
                            -117-    LRB093 04198 SJM 04242 b
 1                  to  the  net  operating  loss  carried  back or
 2                  forward to the taxable year  from  any  taxable
 3                  year  ending  prior  to December 31, 1986 shall
 4                  not exceed the  amount  of  such  carryback  or
 5                  carryforward;
 6                  For  taxable  years  in  which  there  is a net
 7             operating loss carryback or carryforward  from  more
 8             than one other taxable year ending prior to December
 9             31, 1986, the addition modification provided in this
10             subparagraph  (E)  shall  be  the sum of the amounts
11             computed   independently   under    the    preceding
12             provisions  of  this  subparagraph (E) for each such
13             taxable year;
14                  (E-5)  For taxable years ending after  December
15             31,   1997,   an   amount   equal  to  any  eligible
16             remediation costs that the corporation  deducted  in
17             computing  adjusted  gross  income and for which the
18             corporation claims a credit under subsection (l)  of
19             Section 201;
20                  (E-10)  For  taxable years 2001 and thereafter,
21             an amount equal to the bonus depreciation  deduction
22             (30%   of   the  adjusted  basis  of  the  qualified
23             property) taken on the taxpayer's federal income tax
24             return for the taxable year under subsection (k)  of
25             Section 168 of the Internal Revenue Code; and
26                  (E-11)  If  the taxpayer reports a capital gain
27             or loss on the taxpayer's federal income tax  return
28             for  the taxable year based on a sale or transfer of
29             property for which the taxpayer was required in  any
30             taxable  year to make an addition modification under
31             subparagraph (E-10), then an  amount  equal  to  the
32             aggregate  amount  of  the  deductions  taken in all
33             taxable years under subparagraph (T) with respect to
34             that property.;
 
                            -118-    LRB093 04198 SJM 04242 b
 1                  The taxpayer is required to make  the  addition
 2             modification  under this subparagraph only once with
 3             respect to any one piece of property;
 4        and by deducting from the total so obtained  the  sum  of
 5        the following amounts:
 6                  (F)  An  amount  equal to the amount of any tax
 7             imposed by  this  Act  which  was  refunded  to  the
 8             taxpayer  and included in such total for the taxable
 9             year;
10                  (G)  An amount equal to any amount included  in
11             such  total under Section 78 of the Internal Revenue
12             Code;
13                  (H)  In the  case  of  a  regulated  investment
14             company,  an  amount  equal  to the amount of exempt
15             interest dividends as defined in subsection (b)  (5)
16             of Section 852 of the Internal Revenue Code, paid to
17             shareholders for the taxable year;
18                  (I)  With   the   exception   of   any  amounts
19             subtracted under subparagraph (J), an  amount  equal
20             to  the  sum of all amounts disallowed as deductions
21             by  (i)  Sections  171(a)  (2),  and  265(a)(2)  and
22             amounts disallowed as interest  expense  by  Section
23             291(a)(3)  of  the  Internal Revenue Code, as now or
24             hereafter  amended,  and  all  amounts  of  expenses
25             allocable to interest and disallowed  as  deductions
26             by  Section  265(a)(1) of the Internal Revenue Code,
27             as now or hereafter amended; and  (ii)  for  taxable
28             years  ending  on or after August 13, 1999, Sections
29             171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
30             of the Internal Revenue Code; the provisions of this
31             subparagraph  are  exempt  from  the  provisions  of
32             Section 250;
33                  (J)  An amount equal to all amounts included in
34             such total which are exempt from  taxation  by  this
 
                            -119-    LRB093 04198 SJM 04242 b
 1             State   either   by   reason   of  its  statutes  or
 2             Constitution  or  by  reason  of  the  Constitution,
 3             treaties or statutes of the United States;  provided
 4             that,  in the case of any statute of this State that
 5             exempts  income  derived   from   bonds   or   other
 6             obligations from the tax imposed under this Act, the
 7             amount  exempted  shall  be the interest net of bond
 8             premium amortization;
 9                  (K)  An  amount  equal   to   those   dividends
10             included   in  such  total  which  were  paid  by  a
11             corporation which conducts business operations in an
12             Enterprise Zone or zones created under the  Illinois
13             Enterprise  Zone  Act and conducts substantially all
14             of its operations in an Enterprise Zone or zones;
15                  (L)  An  amount  equal   to   those   dividends
16             included   in   such  total  that  were  paid  by  a
17             corporation that conducts business operations  in  a
18             federally  designated Foreign Trade Zone or Sub-Zone
19             and  that  is  designated  a  High  Impact  Business
20             located  in  Illinois;   provided   that   dividends
21             eligible  for the deduction provided in subparagraph
22             (K) of paragraph 2 of this subsection shall  not  be
23             eligible  for  the  deduction  provided  under  this
24             subparagraph (L);
25                  (M)  For  any  taxpayer  that  is  a  financial
26             organization within the meaning of Section 304(c) of
27             this  Act,  an  amount  included  in  such  total as
28             interest income from a loan or loans  made  by  such
29             taxpayer  to  a  borrower, to the extent that such a
30             loan is secured by property which  is  eligible  for
31             the Enterprise Zone Investment Credit.  To determine
32             the  portion  of  a loan or loans that is secured by
33             property eligible for a  Section  201(f)  investment
34             credit  to the borrower, the entire principal amount
 
                            -120-    LRB093 04198 SJM 04242 b
 1             of the loan or loans between the  taxpayer  and  the
 2             borrower  should  be  divided  into the basis of the
 3             Section  201(f)  investment  credit  property  which
 4             secures the loan or loans, using  for  this  purpose
 5             the original basis of such property on the date that
 6             it  was  placed  in  service in the Enterprise Zone.
 7             The subtraction modification available  to  taxpayer
 8             in  any  year  under  this  subsection shall be that
 9             portion of the total interest paid by  the  borrower
10             with  respect  to  such  loan  attributable  to  the
11             eligible  property  as calculated under the previous
12             sentence;
13                  (M-1)  For any taxpayer  that  is  a  financial
14             organization within the meaning of Section 304(c) of
15             this  Act,  an  amount  included  in  such  total as
16             interest income from a loan or loans  made  by  such
17             taxpayer  to  a  borrower, to the extent that such a
18             loan is secured by property which  is  eligible  for
19             the  High  Impact  Business  Investment  Credit.  To
20             determine the portion of a loan  or  loans  that  is
21             secured  by  property  eligible for a Section 201(h)
22             investment  credit  to  the  borrower,  the   entire
23             principal  amount  of  the loan or loans between the
24             taxpayer and the borrower should be divided into the
25             basis  of  the  Section  201(h)  investment   credit
26             property  which secures the loan or loans, using for
27             this purpose the original basis of such property  on
28             the  date  that  it  was  placed  in  service  in  a
29             federally  designated Foreign Trade Zone or Sub-Zone
30             located in Illinois.  No taxpayer that  is  eligible
31             for  the  deduction  provided in subparagraph (M) of
32             paragraph (2) of this subsection shall  be  eligible
33             for  the  deduction provided under this subparagraph
34             (M-1).  The subtraction  modification  available  to
 
                            -121-    LRB093 04198 SJM 04242 b
 1             taxpayers in any year under this subsection shall be
 2             that  portion  of  the  total  interest  paid by the
 3             borrower with respect to such loan  attributable  to
 4             the   eligible  property  as  calculated  under  the
 5             previous sentence;
 6                  (N)  Two times any contribution made during the
 7             taxable year to a designated  zone  organization  to
 8             the  extent that the contribution (i) qualifies as a
 9             charitable  contribution  under  subsection  (c)  of
10             Section 170 of the Internal Revenue  Code  and  (ii)
11             must,  by  its terms, be used for a project approved
12             by the Department of Commerce and Community  Affairs
13             under  Section  11  of  the Illinois Enterprise Zone
14             Act;
15                  (O)  An amount equal to: (i)  85%  for  taxable
16             years  ending  on or before December 31, 1992, or, a
17             percentage equal to the percentage  allowable  under
18             Section  243(a)(1)  of  the Internal Revenue Code of
19             1986 for taxable years  ending  after  December  31,
20             1992,  of  the amount by which dividends included in
21             taxable income and received from a corporation  that
22             is  not  created  or organized under the laws of the
23             United States or any state or political  subdivision
24             thereof,  including,  for taxable years ending on or
25             after  December  31,  1988,  dividends  received  or
26             deemed  received  or  paid  or  deemed  paid   under
27             Sections  951  through  964  of the Internal Revenue
28             Code, exceed the amount of the modification provided
29             under subparagraph (G)  of  paragraph  (2)  of  this
30             subsection  (b)  which is related to such dividends;
31             plus (ii) 100% of the  amount  by  which  dividends,
32             included  in taxable income and received, including,
33             for taxable years ending on or  after  December  31,
34             1988,  dividends received or deemed received or paid
 
                            -122-    LRB093 04198 SJM 04242 b
 1             or deemed paid under Sections 951 through 964 of the
 2             Internal Revenue Code,  from  any  such  corporation
 3             specified  in  clause  (i)  that  would  but for the
 4             provisions of Section 1504 (b) (3) of  the  Internal
 5             Revenue   Code   be  treated  as  a  member  of  the
 6             affiliated  group  which   includes   the   dividend
 7             recipient,  exceed  the  amount  of the modification
 8             provided under subparagraph (G) of paragraph (2)  of
 9             this   subsection  (b)  which  is  related  to  such
10             dividends;
11                  (P)  An amount equal to any  contribution  made
12             to  a  job  training project established pursuant to
13             the Tax Increment Allocation Redevelopment Act;
14                  (Q)  An amount  equal  to  the  amount  of  the
15             deduction  used  to  compute  the federal income tax
16             credit for restoration of substantial  amounts  held
17             under  claim  of right for the taxable year pursuant
18             to Section 1341 of  the  Internal  Revenue  Code  of
19             1986;
20                  (R)  In  the  case  of an attorney-in-fact with
21             respect to whom  an  interinsurer  or  a  reciprocal
22             insurer  has  made the election under Section 835 of
23             the Internal Revenue Code, 26 U.S.C. 835, an  amount
24             equal  to the excess, if any, of the amounts paid or
25             incurred by that interinsurer or reciprocal  insurer
26             in the taxable year to the attorney-in-fact over the
27             deduction allowed to that interinsurer or reciprocal
28             insurer  with  respect to the attorney-in-fact under
29             Section 835(b) of the Internal Revenue Code for  the
30             taxable year;
31                  (S)  For  taxable  years  ending  on  or  after
32             December  31,  1997,  in  the case of a Subchapter S
33             corporation, an  amount  equal  to  all  amounts  of
34             income  allocable  to  a  shareholder subject to the
 
                            -123-    LRB093 04198 SJM 04242 b
 1             Personal Property Tax Replacement Income Tax imposed
 2             by subsections (c) and (d) of Section  201  of  this
 3             Act,  including  amounts  allocable to organizations
 4             exempt from federal income tax by reason of  Section
 5             501(a)   of   the   Internal   Revenue  Code.   This
 6             subparagraph (S) is exempt from  the  provisions  of
 7             Section 250;
 8                  (T)  For taxable years 2001 and thereafter, for
 9             the  taxable  year  in  which the bonus depreciation
10             deduction  (30%  of  the  adjusted  basis   of   the
11             qualified  property)  is  taken  on  the  taxpayer's
12             federal  income  tax  return under subsection (k) of
13             Section 168 of the Internal  Revenue  Code  and  for
14             each  applicable  taxable year thereafter, an amount
15             equal to "x", where:
16                       (1)  "y"  equals   the   amount   of   the
17                  depreciation  deduction  taken  for the taxable
18                  year  on  the  taxpayer's  federal  income  tax
19                  return  on  property  for   which   the   bonus
20                  depreciation  deduction  (30%  of  the adjusted
21                  basis of the qualified property) was  taken  in
22                  any year under subsection (k) of Section 168 of
23                  the  Internal  Revenue  Code, but not including
24                  the bonus depreciation deduction; and
25                       (2)  "x" equals "y" multiplied by  30  and
26                  then  divided  by  70  (or  "y"  multiplied  by
27                  0.429).
28                  The   aggregate   amount  deducted  under  this
29             subparagraph in all taxable years for any one  piece
30             of  property  may not exceed the amount of the bonus
31             depreciation deduction (30% of the adjusted basis of
32             the qualified property) taken on  that  property  on
33             the  taxpayer's  federal  income  tax  return  under
34             subsection  (k)  of  Section  168  of  the  Internal
 
                            -124-    LRB093 04198 SJM 04242 b
 1             Revenue Code; and
 2                  (U)  If  the taxpayer reports a capital gain or
 3             loss on the taxpayer's federal income tax return for
 4             the taxable year based on  a  sale  or  transfer  of
 5             property  for which the taxpayer was required in any
 6             taxable year to make an addition modification  under
 7             subparagraph  (E-10),  then  an amount equal to that
 8             addition modification.
 9                  The taxpayer is allowed to take  the  deduction
10             under  this  subparagraph  only once with respect to
11             any one piece of property.
12             (3)  Special rule.  For purposes  of  paragraph  (2)
13        (A),  "gross  income"  in  the  case  of a life insurance
14        company, for tax years ending on and after  December  31,
15        1994,  shall  mean  the  gross  investment income for the
16        taxable year.

17        (c)  Trusts and estates.
18             (1)  In general.  In the case of a trust or  estate,
19        base  income  means  an  amount  equal  to the taxpayer's
20        taxable income  for  the  taxable  year  as  modified  by
21        paragraph (2).
22             (2)  Modifications.   Subject  to  the provisions of
23        paragraph  (3),  the  taxable  income  referred   to   in
24        paragraph (1) shall be modified by adding thereto the sum
25        of the following amounts:
26                  (A)  An  amount  equal  to  all amounts paid or
27             accrued to the taxpayer  as  interest  or  dividends
28             during  the taxable year to the extent excluded from
29             gross income in the computation of taxable income;
30                  (B)  In the case of (i) an estate, $600; (ii) a
31             trust which,  under  its  governing  instrument,  is
32             required  to distribute all of its income currently,
33             $300; and (iii) any other trust, $100, but  in  each
34             such  case,  only  to  the  extent  such  amount was
 
                            -125-    LRB093 04198 SJM 04242 b
 1             deducted in the computation of taxable income;
 2                  (C)  An amount  equal  to  the  amount  of  tax
 3             imposed  by  this  Act  to  the extent deducted from
 4             gross income in the computation  of  taxable  income
 5             for the taxable year;
 6                  (D)  The  amount  of  any  net  operating  loss
 7             deduction taken in arriving at taxable income, other
 8             than  a  net  operating  loss carried forward from a
 9             taxable year ending prior to December 31, 1986;
10                  (E)  For taxable years in which a net operating
11             loss carryback or carryforward from a  taxable  year
12             ending  prior  to December 31, 1986 is an element of
13             taxable income under paragraph (1) of subsection (e)
14             or subparagraph (E) of paragraph (2)  of  subsection
15             (e),  the  amount  by  which  addition modifications
16             other than those provided by this  subparagraph  (E)
17             exceeded  subtraction  modifications in such taxable
18             year, with the following limitations applied in  the
19             order that they are listed:
20                       (i)  the addition modification relating to
21                  the  net operating loss carried back or forward
22                  to the  taxable  year  from  any  taxable  year
23                  ending  prior  to  December  31,  1986 shall be
24                  reduced by the amount of addition  modification
25                  under  this  subparagraph  (E) which related to
26                  that net operating loss  and  which  was  taken
27                  into  account in calculating the base income of
28                  an earlier taxable year, and
29                       (ii)  the addition  modification  relating
30                  to  the  net  operating  loss  carried  back or
31                  forward to the taxable year  from  any  taxable
32                  year  ending  prior  to December 31, 1986 shall
33                  not exceed the  amount  of  such  carryback  or
34                  carryforward;
 
                            -126-    LRB093 04198 SJM 04242 b
 1                  For  taxable  years  in  which  there  is a net
 2             operating loss carryback or carryforward  from  more
 3             than one other taxable year ending prior to December
 4             31, 1986, the addition modification provided in this
 5             subparagraph  (E)  shall  be  the sum of the amounts
 6             computed   independently   under    the    preceding
 7             provisions  of  this  subparagraph (E) for each such
 8             taxable year;
 9                  (F)  For  taxable  years  ending  on  or  after
10             January 1, 1989, an amount equal to the tax deducted
11             pursuant to Section 164 of the Internal Revenue Code
12             if the trust or estate is claiming the same tax  for
13             purposes  of  the  Illinois foreign tax credit under
14             Section 601 of this Act;
15                  (G)  An amount  equal  to  the  amount  of  the
16             capital  gain deduction allowable under the Internal
17             Revenue Code, to  the  extent  deducted  from  gross
18             income in the computation of taxable income;
19                  (G-5)  For  taxable years ending after December
20             31,  1997,  an  amount   equal   to   any   eligible
21             remediation  costs that the trust or estate deducted
22             in computing adjusted gross income and for which the
23             trust or estate claims a credit under subsection (l)
24             of Section 201;
25                  (G-10)  For taxable years 2001 and  thereafter,
26             an  amount equal to the bonus depreciation deduction
27             (30%  of  the  adjusted  basis  of   the   qualified
28             property) taken on the taxpayer's federal income tax
29             return  for the taxable year under subsection (k) of
30             Section 168 of the Internal Revenue Code; and
31                  (G-11)  If the taxpayer reports a capital  gain
32             or  loss on the taxpayer's federal income tax return
33             for the taxable year based on a sale or transfer  of
34             property  for which the taxpayer was required in any
 
                            -127-    LRB093 04198 SJM 04242 b
 1             taxable year to make an addition modification  under
 2             subparagraph  (G-10),  then  an  amount equal to the
 3             aggregate amount of  the  deductions  taken  in  all
 4             taxable years under subparagraph (R) with respect to
 5             that property.;
 6                  The  taxpayer  is required to make the addition
 7             modification under this subparagraph only once  with
 8             respect to any one piece of property;
 9        and  by  deducting  from the total so obtained the sum of
10        the following amounts:
11                  (H)  An amount equal to all amounts included in
12             such total pursuant to the  provisions  of  Sections
13             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
14             408 of the Internal Revenue Code or included in such
15             total as distributions under the provisions  of  any
16             retirement  or  disability plan for employees of any
17             governmental agency or unit, or retirement  payments
18             to  retired partners, which payments are excluded in
19             computing  net  earnings  from  self  employment  by
20             Section  1402  of  the  Internal  Revenue  Code  and
21             regulations adopted pursuant thereto;
22                  (I)  The valuation limitation amount;
23                  (J)  An amount equal to the amount of  any  tax
24             imposed  by  this  Act  which  was  refunded  to the
25             taxpayer and included in such total for the  taxable
26             year;
27                  (K)  An amount equal to all amounts included in
28             taxable  income  as  modified  by subparagraphs (A),
29             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
30             from  taxation by this State either by reason of its
31             statutes  or  Constitution  or  by  reason  of   the
32             Constitution,  treaties  or  statutes  of the United
33             States; provided that, in the case of any statute of
34             this State that exempts income derived from bonds or
 
                            -128-    LRB093 04198 SJM 04242 b
 1             other obligations from the tax  imposed  under  this
 2             Act,  the  amount exempted shall be the interest net
 3             of bond premium amortization;
 4                  (L)  With  the   exception   of   any   amounts
 5             subtracted  under  subparagraph (K), an amount equal
 6             to the sum of all amounts disallowed  as  deductions
 7             by  (i)  Sections  171(a)  (2)  and 265(a)(2) of the
 8             Internal Revenue Code, as now or hereafter  amended,
 9             and  all  amounts  of expenses allocable to interest
10             and disallowed as deductions by  Section  265(1)  of
11             the  Internal  Revenue  Code  of  1954,  as  now  or
12             hereafter amended; and (ii) for taxable years ending
13             on  or  after  August  13, 1999, Sections 171(a)(2),
14             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
15             Revenue Code; the provisions  of  this  subparagraph
16             are exempt from the provisions of Section 250;
17                  (M)  An   amount   equal   to  those  dividends
18             included  in  such  total  which  were  paid  by   a
19             corporation which conducts business operations in an
20             Enterprise  Zone or zones created under the Illinois
21             Enterprise Zone Act and conducts  substantially  all
22             of its operations in an Enterprise Zone or Zones;
23                  (N)  An  amount  equal to any contribution made
24             to a job training project  established  pursuant  to
25             the Tax Increment Allocation Redevelopment Act;
26                  (O)  An   amount   equal   to  those  dividends
27             included  in  such  total  that  were  paid   by   a
28             corporation  that  conducts business operations in a
29             federally designated Foreign Trade Zone or  Sub-Zone
30             and  that  is  designated  a  High  Impact  Business
31             located   in   Illinois;   provided  that  dividends
32             eligible for the deduction provided in  subparagraph
33             (M) of paragraph (2) of this subsection shall not be
34             eligible  for  the  deduction  provided  under  this
 
                            -129-    LRB093 04198 SJM 04242 b
 1             subparagraph (O);
 2                  (P)  An  amount  equal  to  the  amount  of the
 3             deduction used to compute  the  federal  income  tax
 4             credit  for  restoration of substantial amounts held
 5             under claim of right for the taxable  year  pursuant
 6             to  Section  1341  of  the  Internal Revenue Code of
 7             1986;
 8                  (Q)  For taxable year 1999 and  thereafter,  an
 9             amount equal to the amount of any (i) distributions,
10             to the extent includible in gross income for federal
11             income tax purposes, made to the taxpayer because of
12             his  or  her  status  as a victim of persecution for
13             racial or religious reasons by Nazi Germany  or  any
14             other  Axis  regime  or as an heir of the victim and
15             (ii) items of income, to the  extent  includible  in
16             gross   income  for  federal  income  tax  purposes,
17             attributable to, derived from or in any way  related
18             to  assets  stolen  from,  hidden from, or otherwise
19             lost to  a  victim  of  persecution  for  racial  or
20             religious  reasons by Nazi Germany or any other Axis
21             regime immediately prior to, during, and immediately
22             after World War II, including, but not  limited  to,
23             interest  on  the  proceeds  receivable as insurance
24             under policies issued to a victim of persecution for
25             racial or religious reasons by Nazi Germany  or  any
26             other  Axis  regime  by European insurance companies
27             immediately  prior  to  and  during  World  War  II;
28             provided, however,  this  subtraction  from  federal
29             adjusted  gross  income  does  not  apply  to assets
30             acquired with such assets or with the proceeds  from
31             the  sale  of  such  assets; provided, further, this
32             paragraph shall only apply to a taxpayer who was the
33             first recipient of such assets after their  recovery
34             and  who  is  a victim of  persecution for racial or
 
                            -130-    LRB093 04198 SJM 04242 b
 1             religious reasons by Nazi Germany or any other  Axis
 2             regime  or  as an heir of the victim.  The amount of
 3             and  the  eligibility  for  any  public  assistance,
 4             benefit, or similar entitlement is not  affected  by
 5             the   inclusion  of  items  (i)  and  (ii)  of  this
 6             paragraph in gross income  for  federal  income  tax
 7             purposes.   This   paragraph   is  exempt  from  the
 8             provisions of Section 250;
 9                  (R)  For taxable years 2001 and thereafter, for
10             the taxable year in  which  the  bonus  depreciation
11             deduction   (30%   of  the  adjusted  basis  of  the
12             qualified  property)  is  taken  on  the  taxpayer's
13             federal income tax return under  subsection  (k)  of
14             Section  168  of  the  Internal Revenue Code and for
15             each applicable taxable year thereafter,  an  amount
16             equal to "x", where:
17                       (1)  "y"   equals   the   amount   of  the
18                  depreciation deduction taken  for  the  taxable
19                  year  on  the  taxpayer's  federal  income  tax
20                  return   on   property   for  which  the  bonus
21                  depreciation deduction  (30%  of  the  adjusted
22                  basis  of  the qualified property) was taken in
23                  any year under subsection (k) of Section 168 of
24                  the Internal Revenue Code,  but  not  including
25                  the bonus depreciation deduction; and
26                       (2)  "x"  equals  "y" multiplied by 30 and
27                  then  divided  by  70  (or  "y"  multiplied  by
28                  0.429).
29                  The  aggregate  amount  deducted   under   this
30             subparagraph  in all taxable years for any one piece
31             of property may not exceed the amount of  the  bonus
32             depreciation deduction (30% of the adjusted basis of
33             the  qualified  property)  taken on that property on
34             the  taxpayer's  federal  income  tax  return  under
 
                            -131-    LRB093 04198 SJM 04242 b
 1             subsection  (k)  of  Section  168  of  the  Internal
 2             Revenue Code; and
 3                  (S)  If the taxpayer reports a capital gain  or
 4             loss on the taxpayer's federal income tax return for
 5             the  taxable  year  based  on  a sale or transfer of
 6             property for which the taxpayer was required in  any
 7             taxable  year to make an addition modification under
 8             subparagraph (G-10), then an amount  equal  to  that
 9             addition modification.
10                  The  taxpayer  is allowed to take the deduction
11             under this subparagraph only once  with  respect  to
12             any one piece of property.
13             (3)  Limitation.   The  amount  of  any modification
14        otherwise required under  this  subsection  shall,  under
15        regulations  prescribed by the Department, be adjusted by
16        any amounts included therein which  were  properly  paid,
17        credited,  or  required to be distributed, or permanently
18        set aside for charitable purposes pursuant   to  Internal
19        Revenue Code Section 642(c) during the taxable year.

20        (d)  Partnerships.
21             (1)  In  general. In the case of a partnership, base
22        income means an amount equal to  the  taxpayer's  taxable
23        income for the taxable year as modified by paragraph (2).
24             (2)  Modifications.  The  taxable income referred to
25        in paragraph (1) shall be modified by adding thereto  the
26        sum of the following amounts:
27                  (A)  An  amount  equal  to  all amounts paid or
28             accrued to the taxpayer  as  interest  or  dividends
29             during  the taxable year to the extent excluded from
30             gross income in the computation of taxable income;
31                  (B)  An amount  equal  to  the  amount  of  tax
32             imposed  by  this  Act  to  the extent deducted from
33             gross income for the taxable year;
34                  (C)  The amount of deductions  allowed  to  the
 
                            -132-    LRB093 04198 SJM 04242 b
 1             partnership  pursuant  to  Section  707  (c)  of the
 2             Internal Revenue Code  in  calculating  its  taxable
 3             income;
 4                  (D)  An  amount  equal  to  the  amount  of the
 5             capital gain deduction allowable under the  Internal
 6             Revenue  Code,  to  the  extent  deducted from gross
 7             income in the computation of taxable income;
 8                  (D-5)  For taxable years 2001  and  thereafter,
 9             an  amount equal to the bonus depreciation deduction
10             (30%  of  the  adjusted  basis  of   the   qualified
11             property) taken on the taxpayer's federal income tax
12             return  for the taxable year under subsection (k) of
13             Section 168 of the Internal Revenue Code; and
14                  (D-6)  If the taxpayer reports a  capital  gain
15             or  loss on the taxpayer's federal income tax return
16             for the taxable year based on a sale or transfer  of
17             property  for which the taxpayer was required in any
18             taxable year to make an addition modification  under
19             subparagraph  (D-5),  then  an  amount  equal to the
20             aggregate amount of  the  deductions  taken  in  all
21             taxable years under subparagraph (O) with respect to
22             that property.;
23                  The  taxpayer  is required to make the addition
24             modification under this subparagraph only once  with
25             respect to any one piece of property;
26        and by deducting from the total so obtained the following
27        amounts:
28                  (E)  The valuation limitation amount;
29                  (F)  An  amount  equal to the amount of any tax
30             imposed by  this  Act  which  was  refunded  to  the
31             taxpayer  and included in such total for the taxable
32             year;
33                  (G)  An amount equal to all amounts included in
34             taxable income as  modified  by  subparagraphs  (A),
 
                            -133-    LRB093 04198 SJM 04242 b
 1             (B),  (C)  and (D) which are exempt from taxation by
 2             this State either  by  reason  of  its  statutes  or
 3             Constitution  or  by  reason  of  the  Constitution,
 4             treaties  or statutes of the United States; provided
 5             that, in the case of any statute of this State  that
 6             exempts   income   derived   from   bonds  or  other
 7             obligations from the tax imposed under this Act, the
 8             amount exempted shall be the interest  net  of  bond
 9             premium amortization;
10                  (H)  Any   income   of  the  partnership  which
11             constitutes personal service income  as  defined  in
12             Section  1348  (b)  (1) of the Internal Revenue Code
13             (as in effect December 31,  1981)  or  a  reasonable
14             allowance  for  compensation  paid  or  accrued  for
15             services  rendered  by  partners to the partnership,
16             whichever is greater;
17                  (I)  An amount equal to all amounts  of  income
18             distributable  to  an entity subject to the Personal
19             Property  Tax  Replacement  Income  Tax  imposed  by
20             subsections (c) and (d) of Section 201 of  this  Act
21             including  amounts  distributable  to  organizations
22             exempt  from federal income tax by reason of Section
23             501(a) of the Internal Revenue Code;
24                  (J)  With  the   exception   of   any   amounts
25             subtracted  under  subparagraph (G), an amount equal
26             to the sum of all amounts disallowed  as  deductions
27             by  (i)  Sections  171(a)  (2),  and  265(2)  of the
28             Internal Revenue Code of 1954, as now  or  hereafter
29             amended,  and  all  amounts of expenses allocable to
30             interest and disallowed  as  deductions  by  Section
31             265(1)  of  the  Internal  Revenue  Code,  as now or
32             hereafter amended; and (ii) for taxable years ending
33             on or after August  13,  1999,  Sections  171(a)(2),
34             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
 
                            -134-    LRB093 04198 SJM 04242 b
 1             Revenue  Code;  the  provisions of this subparagraph
 2             are exempt from the provisions of Section 250;
 3                  (K)  An  amount  equal   to   those   dividends
 4             included   in  such  total  which  were  paid  by  a
 5             corporation which conducts business operations in an
 6             Enterprise Zone or zones created under the  Illinois
 7             Enterprise  Zone  Act,  enacted  by the 82nd General
 8             Assembly, and  conducts  substantially  all  of  its
 9             operations in an Enterprise Zone or Zones;
10                  (L)  An  amount  equal to any contribution made
11             to a job training project  established  pursuant  to
12             the   Real   Property   Tax   Increment   Allocation
13             Redevelopment Act;
14                  (M)  An   amount   equal   to  those  dividends
15             included  in  such  total  that  were  paid   by   a
16             corporation  that  conducts business operations in a
17             federally designated Foreign Trade Zone or  Sub-Zone
18             and  that  is  designated  a  High  Impact  Business
19             located   in   Illinois;   provided  that  dividends
20             eligible for the deduction provided in  subparagraph
21             (K) of paragraph (2) of this subsection shall not be
22             eligible  for  the  deduction  provided  under  this
23             subparagraph (M);
24                  (N)  An  amount  equal  to  the  amount  of the
25             deduction used to compute  the  federal  income  tax
26             credit  for  restoration of substantial amounts held
27             under claim of right for the taxable  year  pursuant
28             to  Section  1341  of  the  Internal Revenue Code of
29             1986;
30                  (O)  For taxable years 2001 and thereafter, for
31             the taxable year in  which  the  bonus  depreciation
32             deduction   (30%   of  the  adjusted  basis  of  the
33             qualified  property)  is  taken  on  the  taxpayer's
34             federal income tax return under  subsection  (k)  of
 
                            -135-    LRB093 04198 SJM 04242 b
 1             Section  168  of  the  Internal Revenue Code and for
 2             each applicable taxable year thereafter,  an  amount
 3             equal to "x", where:
 4                       (1)  "y"   equals   the   amount   of  the
 5                  depreciation deduction taken  for  the  taxable
 6                  year  on  the  taxpayer's  federal  income  tax
 7                  return   on   property   for  which  the  bonus
 8                  depreciation deduction  (30%  of  the  adjusted
 9                  basis  of  the qualified property) was taken in
10                  any year under subsection (k) of Section 168 of
11                  the Internal Revenue Code,  but  not  including
12                  the bonus depreciation deduction; and
13                       (2)  "x"  equals  "y" multiplied by 30 and
14                  then  divided  by  70  (or  "y"  multiplied  by
15                  0.429).
16                  The  aggregate  amount  deducted   under   this
17             subparagraph  in all taxable years for any one piece
18             of property may not exceed the amount of  the  bonus
19             depreciation deduction (30% of the adjusted basis of
20             the  qualified  property)  taken on that property on
21             the  taxpayer's  federal  income  tax  return  under
22             subsection  (k)  of  Section  168  of  the  Internal
23             Revenue Code; and
24                  (P)  If the taxpayer reports a capital gain  or
25             loss on the taxpayer's federal income tax return for
26             the  taxable  year  based  on  a sale or transfer of
27             property for which the taxpayer was required in  any
28             taxable  year to make an addition modification under
29             subparagraph (D-5), then an  amount  equal  to  that
30             addition modification.
31                  The  taxpayer  is allowed to take the deduction
32             under this subparagraph only once  with  respect  to
33             any one piece of property.

34        (e)  Gross income; adjusted gross income; taxable income.
 
                            -136-    LRB093 04198 SJM 04242 b
 1             (1)  In  general.   Subject  to  the  provisions  of
 2        paragraph  (2)  and  subsection  (b) (3), for purposes of
 3        this Section  and  Section  803(e),  a  taxpayer's  gross
 4        income,  adjusted gross income, or taxable income for the
 5        taxable year shall  mean  the  amount  of  gross  income,
 6        adjusted   gross   income   or  taxable  income  properly
 7        reportable  for  federal  income  tax  purposes  for  the
 8        taxable year under the provisions of the Internal Revenue
 9        Code. Taxable income may be less than zero. However,  for
10        taxable  years  ending on or after December 31, 1986, net
11        operating loss carryforwards from  taxable  years  ending
12        prior  to  December  31,  1986, may not exceed the sum of
13        federal taxable income for the taxable  year  before  net
14        operating  loss  deduction,  plus  the excess of addition
15        modifications  over  subtraction  modifications  for  the
16        taxable year.  For taxable years ending prior to December
17        31, 1986, taxable income may never be an amount in excess
18        of the net operating loss for the taxable year as defined
19        in subsections (c) and (d) of Section 172 of the Internal
20        Revenue Code, provided that  when  taxable  income  of  a
21        corporation  (other  than  a  Subchapter  S corporation),
22        trust,  or  estate  is  less  than  zero   and   addition
23        modifications,  other than those provided by subparagraph
24        (E) of paragraph (2) of subsection (b)  for  corporations
25        or  subparagraph  (E)  of paragraph (2) of subsection (c)
26        for trusts and estates, exceed subtraction modifications,
27        an  addition  modification  must  be  made  under   those
28        subparagraphs  for  any  other  taxable year to which the
29        taxable income less than zero  (net  operating  loss)  is
30        applied under Section 172 of the Internal Revenue Code or
31        under   subparagraph   (E)   of  paragraph  (2)  of  this
32        subsection (e) applied in conjunction with Section 172 of
33        the Internal Revenue Code.
34             (2)  Special rule.  For purposes of paragraph (1) of
 
                            -137-    LRB093 04198 SJM 04242 b
 1        this subsection, the taxable income  properly  reportable
 2        for federal income tax purposes shall mean:
 3                  (A)  Certain  life insurance companies.  In the
 4             case of a life insurance company subject to the  tax
 5             imposed by Section 801 of the Internal Revenue Code,
 6             life  insurance  company  taxable  income,  plus the
 7             amount of distribution  from  pre-1984  policyholder
 8             surplus accounts as calculated under Section 815a of
 9             the Internal Revenue Code;
10                  (B)  Certain other insurance companies.  In the
11             case  of  mutual  insurance companies subject to the
12             tax imposed by Section 831 of the  Internal  Revenue
13             Code, insurance company taxable income;
14                  (C)  Regulated  investment  companies.   In the
15             case of a regulated investment  company  subject  to
16             the  tax  imposed  by  Section  852  of the Internal
17             Revenue Code, investment company taxable income;
18                  (D)  Real estate  investment  trusts.   In  the
19             case  of  a  real estate investment trust subject to
20             the tax imposed  by  Section  857  of  the  Internal
21             Revenue  Code,  real estate investment trust taxable
22             income;
23                  (E)  Consolidated corporations.  In the case of
24             a corporation which is a  member  of  an  affiliated
25             group  of  corporations filing a consolidated income
26             tax return for the taxable year for  federal  income
27             tax  purposes,  taxable income determined as if such
28             corporation had filed a separate return for  federal
29             income  tax  purposes  for the taxable year and each
30             preceding taxable year for which it was a member  of
31             an   affiliated   group.   For   purposes   of  this
32             subparagraph, the taxpayer's separate taxable income
33             shall be determined as if the election  provided  by
34             Section  243(b) (2) of the Internal Revenue Code had
 
                            -138-    LRB093 04198 SJM 04242 b
 1             been in effect for all such years;
 2                  (F)  Cooperatives.    In   the   case   of    a
 3             cooperative  corporation or association, the taxable
 4             income of such organization determined in accordance
 5             with the provisions of Section 1381 through 1388  of
 6             the Internal Revenue Code;
 7                  (G)  Subchapter  S  corporations.   In the case
 8             of: (i) a Subchapter S corporation for  which  there
 9             is  in effect an election for the taxable year under
10             Section 1362  of  the  Internal  Revenue  Code,  the
11             taxable  income  of  such  corporation determined in
12             accordance with  Section  1363(b)  of  the  Internal
13             Revenue  Code, except that taxable income shall take
14             into account  those  items  which  are  required  by
15             Section  1363(b)(1)  of the Internal Revenue Code to
16             be  separately  stated;  and  (ii)  a  Subchapter  S
17             corporation for which there is in effect  a  federal
18             election  to  opt  out  of  the  provisions  of  the
19             Subchapter  S  Revision Act of 1982 and have applied
20             instead the prior federal Subchapter S rules  as  in
21             effect  on  July 1, 1982, the taxable income of such
22             corporation  determined  in  accordance   with   the
23             federal  Subchapter  S rules as in effect on July 1,
24             1982; and
25                  (H)  Partnerships.    In   the   case   of    a
26             partnership, taxable income determined in accordance
27             with  Section  703  of  the  Internal  Revenue Code,
28             except that taxable income shall take  into  account
29             those  items which are required by Section 703(a)(1)
30             to be separately stated but  which  would  be  taken
31             into  account  by  an  individual in calculating his
32             taxable income.

33        (f)  Valuation limitation amount.
34             (1)  In general.  The  valuation  limitation  amount
 
                            -139-    LRB093 04198 SJM 04242 b
 1        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
 2        (d)(2) (E) is an amount equal to:
 3                  (A)  The  sum  of  the   pre-August   1,   1969
 4             appreciation  amounts  (to  the extent consisting of
 5             gain reportable under the provisions of Section 1245
 6             or 1250  of  the  Internal  Revenue  Code)  for  all
 7             property  in respect of which such gain was reported
 8             for the taxable year; plus
 9                  (B)  The  lesser  of  (i)  the   sum   of   the
10             pre-August  1,  1969  appreciation  amounts  (to the
11             extent consisting of capital gain) for all  property
12             in  respect  of  which  such  gain  was reported for
13             federal income tax purposes for the taxable year, or
14             (ii) the net capital  gain  for  the  taxable  year,
15             reduced  in  either  case by any amount of such gain
16             included in the amount determined  under  subsection
17             (a) (2) (F) or (c) (2) (H).
18             (2)  Pre-August 1, 1969 appreciation amount.
19                  (A)  If  the  fair  market  value  of  property
20             referred   to   in   paragraph   (1)   was   readily
21             ascertainable  on  August 1, 1969, the pre-August 1,
22             1969 appreciation amount for such  property  is  the
23             lesser  of  (i) the excess of such fair market value
24             over the taxpayer's basis (for determining gain) for
25             such property on that  date  (determined  under  the
26             Internal Revenue Code as in effect on that date), or
27             (ii)  the  total  gain  realized  and reportable for
28             federal income tax purposes in respect of the  sale,
29             exchange or other disposition of such property.
30                  (B)  If  the  fair  market  value  of  property
31             referred   to  in  paragraph  (1)  was  not  readily
32             ascertainable on August 1, 1969, the  pre-August  1,
33             1969  appreciation  amount for such property is that
34             amount which bears the same ratio to the total  gain
 
                            -140-    LRB093 04198 SJM 04242 b
 1             reported  in  respect  of  the  property for federal
 2             income tax purposes for the  taxable  year,  as  the
 3             number  of  full calendar months in that part of the
 4             taxpayer's holding period for  the  property  ending
 5             July  31,  1969 bears to the number of full calendar
 6             months in the taxpayer's entire holding  period  for
 7             the property.
 8                  (C)  The   Department   shall   prescribe  such
 9             regulations as may be necessary  to  carry  out  the
10             purposes of this paragraph.

11        (g)  Double  deductions.   Unless  specifically  provided
12    otherwise, nothing in this Section shall permit the same item
13    to be deducted more than once.

14        (h)  Legislative intention.  Except as expressly provided
15    by   this   Section   there  shall  be  no  modifications  or
16    limitations on the amounts of income, gain, loss or deduction
17    taken into account  in  determining  gross  income,  adjusted
18    gross  income  or  taxable  income  for  federal  income  tax
19    purposes for the taxable year, or in the amount of such items
20    entering  into  the computation of base income and net income
21    under this Act for such taxable year, whether in  respect  of
22    property values as of August 1, 1969 or otherwise.
23    (Source:  P.A.  91-192,  eff.  7-20-99; 91-205, eff. 7-20-99;
24    91-357, eff. 7-29-99;  91-541,  eff.  8-13-99;  91-676,  eff.
25    12-23-99;  91-845,  eff. 6-22-00; 91-913, eff. 1-1-01; 92-16,
26    eff. 6-28-01; 92-244,  eff.  8-3-01;  92-439,  eff.  8-17-01;
27    92-603,  eff.  6-28-02;  92-626,  eff.  7-11-02; 92-651, eff.
28    7-11-02; 92-846, eff. 8-23-02; revised 11-15-02.)

29        (35 ILCS 5/804) (from Ch. 120, par. 8-804)
30        Sec. 804.  Failure to Pay Estimated Tax.
31        (a)  In general. In case of any underpayment of estimated
32    tax by a taxpayer, except as provided in  subsection  (d)  or
 
                            -141-    LRB093 04198 SJM 04242 b
 1    (e),  the  taxpayer shall be liable to a penalty in an amount
 2    determined at the rate  prescribed  by  Section  3-3  of  the
 3    Uniform  Penalty  and  Interest  Act  upon  the amount of the
 4    underpayment  (determined  under  subsection  (b))  for  each
 5    required installment.
 6        (b)  Amount of underpayment. For purposes  of  subsection
 7    (a), the amount of the underpayment shall be the excess of:
 8             (1)  the  amount  of  the installment which would be
 9        required to be paid under subsection (c), over
10             (2)  the amount, if any, of the installment paid  on
11        or before the last date prescribed for payment.
12        (c)  Amount of Required Installments.
13             (1)  Amount.
14                  (A)  In   General.    Except   as  provided  in
15             paragraph  (2),   the   amount   of   any   required
16             installment  shall  be  25%  of  the required annual
17             payment.
18                  (B)  Required Annual Payment.  For purposes  of
19             subparagraph (A), the term "required annual payment"
20             means the lesser of
21                       (i)  90%  of  the  tax shown on the return
22                  for the taxable year, or if no return is filed,
23                  90% of the tax for such year, or
24                       (ii)  100% of the tax shown on the  return
25                  of  the taxpayer for the preceding taxable year
26                  if a return showing a  liability  for  tax  was
27                  filed by the taxpayer for the preceding taxable
28                  year and such preceding year was a taxable year
29                  of 12 months.
30             (2)  Lower  Required  Installment  where  Annualized
31        Income  Installment  is Less Than Amount Determined Under
32        Paragraph (1).
33                  (A)  In General.  In the case of  any  required
34             installment  if  a  taxpayer  establishes  that  the
 
                            -142-    LRB093 04198 SJM 04242 b
 1             annualized  income  installment  is  less  than  the
 2             amount determined under paragraph (1),
 3                       (i)  the    amount    of   such   required
 4                  installment  shall  be  the  annualized  income
 5                  installment, and
 6                       (ii)  any   reduction   in   a    required
 7                  installment  resulting  from the application of
 8                  this  subparagraph  shall  be   recaptured   by
 9                  increasing  the  amount  of  the  next required
10                  installment determined under paragraph  (1)  by
11                  the amount of such reduction, and by increasing
12                  subsequent  required installments to the extent
13                  that the  reduction  has  not  previously  been
14                  recaptured under this clause.
15                  (B)  Determination    of    Annualized   Income
16             Installment.   In   the   case   of   any   required
17             installment,  the  annualized  income installment is
18             the excess, if any, of
19                       (i)  an amount  equal  to  the  applicable
20                  percentage  of  the  tax  for  the taxable year
21                  computed by placing on an annualized basis  the
22                  net  income  for  months  in  the  taxable year
23                  ending before the due date for the installment,
24                  over
25                       (ii)  the aggregate amount  of  any  prior
26                  required installments for the taxable year.
27                  (C)  Applicable Percentage.
28             In the case of the following          The applicable
29             required installments:                percentage is:
30             1st ...............................            22.5%
31             2nd ...............................              45%
32             3rd ...............................            67.5%
33             4th ...............................              90%
34                  (D)  Annualized  Net  Income; Individuals.  For
 
                            -143-    LRB093 04198 SJM 04242 b
 1             individuals,  net  income  shall  be  placed  on  an
 2             annualized basis by:
 3                       (i)  multiplying by 12, or in the case  of
 4                  a  taxable  year of less than 12 months, by the
 5                  number of months in the taxable year,  the  net
 6                  income  computed without regard to the standard
 7                  exemption for the months in  the  taxable  year
 8                  ending   before   the   month   in   which  the
 9                  installment is required to be paid;
10                       (ii)  dividing the resulting amount by the
11                  number of months in  the  taxable  year  ending
12                  before the month in which such installment date
13                  falls; and
14                       (iii)  deducting   from  such  amount  the
15                  standard exemption allowable  for  the  taxable
16                  year,  such standard exemption being determined
17                  as of the last date prescribed for  payment  of
18                  the installment.
19                  (E)  Annualized  Net Income; Corporations.  For
20             corporations, net  income  shall  be  placed  on  an
21             annualized  basis  by  multiplying by 12 the taxable
22             income
23                       (i)  for the first 3 months of the taxable
24                  year, in the case of the  installment  required
25                  to be paid in the 4th month,
26                       (ii)  for  the  first  3 months or for the
27                  first 5 months of the taxable year, in the case
28                  of the installment required to be paid  in  the
29                  6th month,
30                       (iii)  for  the  first 6 months or for the
31                  first 8 months of the taxable year, in the case
32                  of the installment required to be paid  in  the
33                  9th month, and
34                       (iv)  for  the  first  9 months or for the
 
                            -144-    LRB093 04198 SJM 04242 b
 1                  first 11 months of the  taxable  year,  in  the
 2                  case  of the installment required to be paid in
 3                  the 12th month of the taxable year,
 4             then dividing the resulting amount by the number  of
 5             months  in the taxable year (3, 5, 6, 8, 9, or 11 as
 6             the case may be).
 7        (d)  Exceptions. Notwithstanding the  provisions  of  the
 8    preceding  subsections, the penalty imposed by subsection (a)
 9    shall not be imposed if the taxpayer was not required to file
10    an Illinois income tax return for the preceding taxable year,
11    or if the taxpayer has underpaid taxes solely because of  the
12    increased  rate in effect during the period from July 1, 2003
13    through December  31,  2003,  or,  for  individuals,  if  the
14    taxpayer  had no tax liability for the preceding taxable year
15    and such year was a taxable year of 12  months.  The  penalty
16    imposed  by  subsection  (a) shall also not be imposed on any
17    underpayments of estimated tax due before the effective  date
18    of this amendatory Act of 1998 which underpayments are solely
19    attributable  to  the change in apportionment from subsection
20    (a) to subsection (h) of Section 304.  The provisions of this
21    amendatory Act of 1998 apply to tax years ending on or  after
22    December 31, 1998.
23        (e)  The  penalty  imposed  for underpayment of estimated
24    tax by subsection (a) of this Section shall not be imposed to
25    the extent that the Department or his  designate  determines,
26    pursuant  to  Section 3-8 of the Uniform Penalty and Interest
27    Act that the penalty should not be imposed.
28        (f)  Definition of tax. For purposes of  subsections  (b)
29    and  (c),  the term "tax" means the excess of the tax imposed
30    under Article 2  of  this  Act,  over  the  amounts  credited
31    against such tax under Sections 601(b) (3) and (4).
32        (g)  Application  of  Section  in case of tax withheld on
33    compensation.  For purposes of applying this Section  in  the
34    case  of  an individual, tax withheld under Article 7 for the
 
                            -145-    LRB093 04198 SJM 04242 b
 1    taxable year shall be deemed a payment of estimated tax,  and
 2    an  equal  part  of  such amount shall be deemed paid on each
 3    installment date for such taxable year, unless  the  taxpayer
 4    establishes  the  dates  on  which  all amounts were actually
 5    withheld, in which case the  amounts  so  withheld  shall  be
 6    deemed  payments  of estimated tax on the dates on which such
 7    amounts were actually withheld.
 8        (g-5)  Amounts  withheld  under  the  State  Salary   and
 9    Annuity  Withholding  Act.   An  individual  who  has amounts
10    withheld under paragraph (10)  of  Section  4  of  the  State
11    Salary  and  Annuity  Withholding Act may elect to have those
12    amounts treated as payments of  estimated  tax  made  on  the
13    dates on which those amounts are actually withheld.
14        (i)  Short taxable year.  The application of this Section
15    to  taxable  years  of  less  than  12  months  shall  be  in
16    accordance with regulations prescribed by the Department.
17        The  changes  in  this  Section made by Public Act 84-127
18    shall apply to taxable years ending on or  after  January  1,
19    1986.
20    (Source: P.A. 90-448, eff. 8-16-97; 90-613, eff. 7-9-98.)

21        (35 ILCS 5/901) (from Ch. 120, par. 9-901)
22        Sec. 901.  Collection Authority.
23        (a)  In general.
24        The  Department  shall  collect the taxes imposed by this
25    Act.  The Department shall collect certified past  due  child
26    support  amounts  under Section 2505-650 of the Department of
27    Revenue Law (20 ILCS 2505/2505-650).  Except as  provided  in
28    subsections  (c)  and  (e)  of  this Section, money collected
29    pursuant to subsections (a) and (b) of Section  201  of  this
30    Act  shall be paid into the General Revenue Fund in the State
31    treasury; money collected pursuant to subsections (c) and (d)
32    of Section 201 of this Act shall be paid  into  the  Personal
33    Property  Tax  Replacement  Fund, a special fund in the State
 
                            -146-    LRB093 04198 SJM 04242 b
 1    Treasury; and money collected under Section 2505-650  of  the
 2    Department  of  Revenue  Law (20 ILCS 2505/2505-650) shall be
 3    paid into the Child Support Enforcement Trust Fund, a special
 4    fund outside the State Treasury, or to the State Disbursement
 5    Unit established under Section 10-26 of the  Illinois  Public
 6    Aid Code, as directed by the Department of Public Aid.
 7        (b)  Local Governmental Distributive Fund.
 8        Beginning August 1, 1969, and continuing through June 30,
 9    1994,  the  Treasurer  shall  transfer  each  month  from the
10    General Revenue Fund to a special fund in the State treasury,
11    to be known as the "Local Government Distributive  Fund",  an
12    amount equal to 1/12 of the net revenue realized from the tax
13    imposed by subsections (a) and (b) of Section 201 of this Act
14    during  the  preceding  month.  Beginning  July  1, 1994, and
15    continuing  through  June  30,  1995,  the  Treasurer   shall
16    transfer  each  month  from  the  General Revenue Fund to the
17    Local Government Distributive Fund an amount equal to 1/11 of
18    the net revenue realized from the tax imposed by  subsections
19    (a)  and  (b) of Section 201 of this Act during the preceding
20    month.  Beginning July 1, 1995, the Treasurer shall  transfer
21    each  month  from  the  General  Revenue  Fund  to  the Local
22    Government Distributive Fund an amount equal to 1/10  of  the
23    net  revenue realized from the tax imposed by subsections (a)
24    and (b) of Section 201 of the Illinois Income Tax Act  during
25    the  preceding  month. Net revenue realized for a month shall
26    be defined as the revenue from the tax imposed by subsections
27    (a) and (b) of Section 201 of this Act which is deposited  in
28    the General Revenue Fund, the Educational Assistance Fund and
29    the  Income  Tax Surcharge Local Government Distributive Fund
30    during the month (but not including revenue  attributable  to
31    the  increase  in tax rates imposed under this amendatory Act
32    of the 93rd General Assembly) minus the amount  paid  out  of
33    the  General  Revenue Fund in State warrants during that same
34    month as refunds to taxpayers for  overpayment  of  liability
 
                            -147-    LRB093 04198 SJM 04242 b
 1    under  the  tax imposed by subsections (a) and (b) of Section
 2    201 of this Act.
 3        (c)  Deposits Into Income Tax Refund Fund.
 4             (1)  Beginning on January 1,  1989  and  thereafter,
 5        the  Department shall deposit a percentage of the amounts
 6        collected pursuant to subsections (a)  and  (b)(1),  (2),
 7        and  (3),  (4), and (5) of Section 201 of this Act into a
 8        fund in the State treasury known as the Income Tax Refund
 9        Fund.  The Department shall deposit 6%  of  such  amounts
10        during the period beginning January 1, 1989 and ending on
11        June 30, 1989.  Beginning with State fiscal year 1990 and
12        for each fiscal year thereafter, the percentage deposited
13        into  the  Income  Tax  Refund  Fund during a fiscal year
14        shall be the Annual Percentage.  For  fiscal  years  1999
15        through  2001,  the  Annual Percentage shall be 7.1%. For
16        fiscal year 2003, the Annual Percentage shall be 8%.  For
17        all  other  fiscal  years, the Annual Percentage shall be
18        calculated as a fraction, the numerator of which shall be
19        the  amount  of  refunds  approved  for  payment  by  the
20        Department during the preceding fiscal year as  a  result
21        of overpayment of tax liability under subsections (a) and
22        (b)(1), (2), and (3), (4), and (5) of Section 201 of this
23        Act  plus  the  amount of such refunds remaining approved
24        but unpaid at the end of the preceding fiscal year, minus
25        the amounts transferred into the Income Tax  Refund  Fund
26        from  the  Tobacco  Settlement  Recovery  Fund,  and  the
27        denominator  of  which shall be the amounts which will be
28        collected pursuant to subsections (a)  and  (b)(1),  (2),
29        and  (3),  (4), and (5) of Section 201 of this Act during
30        the preceding fiscal year; except that  in  State  fiscal
31        year 2002, the Annual Percentage shall in no event exceed
32        7.6%.   The  Director of Revenue shall certify the Annual
33        Percentage to the Comptroller on the last business day of
34        the fiscal year immediately preceding the fiscal year for
 
                            -148-    LRB093 04198 SJM 04242 b
 1        which it is to be effective.
 2             (2)  Beginning on January 1,  1989  and  thereafter,
 3        the  Department shall deposit a percentage of the amounts
 4        collected pursuant to subsections (a)  and  (b)(6),  (7),
 5        and  (8),  (9),  and  (10), (c) and (d) of Section 201 of
 6        this Act into a fund in the State treasury known  as  the
 7        Income Tax Refund Fund.  The Department shall deposit 18%
 8        of  such  amounts  during the period beginning January 1,
 9        1989 and ending on June 30, 1989.  Beginning  with  State
10        fiscal year 1990 and for each fiscal year thereafter, the
11        percentage  deposited  into  the  Income  Tax Refund Fund
12        during a fiscal year shall be the Annual Percentage.  For
13        fiscal years 1999, 2000, and 2001, the Annual  Percentage
14        shall be 19%. For fiscal year 2003, the Annual Percentage
15        shall  be  27%.  For  all  other fiscal years, the Annual
16        Percentage  shall  be  calculated  as  a  fraction,   the
17        numerator  of  which  shall  be  the  amount  of  refunds
18        approved   for  payment  by  the  Department  during  the
19        preceding fiscal year as a result of overpayment  of  tax
20        liability under subsections (a) and (b)(6), (7), and (8),
21        (9),  and  (10),  (c)  and (d) of Section 201 of this Act
22        plus the amount of such refunds  remaining  approved  but
23        unpaid  at  the end of the preceding fiscal year, and the
24        denominator of which shall be the amounts which  will  be
25        collected  pursuant  to  subsections (a) and (b)(6), (7),
26        and (8), (9), and (10), (c) and (d)  of  Section  201  of
27        this Act during the preceding fiscal year; except that in
28        State fiscal year 2002, the Annual Percentage shall in no
29        event  exceed 23%.  The Director of Revenue shall certify
30        the Annual Percentage to  the  Comptroller  on  the  last
31        business day of the fiscal year immediately preceding the
32        fiscal year for which it is to be effective.
33             (3)  The Comptroller shall order transferred and the
34        Treasurer  shall  transfer  from  the  Tobacco Settlement
 
                            -149-    LRB093 04198 SJM 04242 b
 1        Recovery  Fund  to  the  Income  Tax  Refund   Fund   (i)
 2        $35,000,000   in   January,  2001,  (ii)  $35,000,000  in
 3        January, 2002, and (iii) $35,000,000 in January, 2003.
 4        (d)  Expenditures from Income Tax Refund Fund.
 5             (1)  Beginning January 1, 1989, money in the  Income
 6        Tax  Refund  Fund  shall  be expended exclusively for the
 7        purpose of paying refunds resulting from  overpayment  of
 8        tax  liability  under Section 201 of this Act, for paying
 9        rebates under Section 208.1 in the event that the amounts
10        in the Homeowners' Tax Relief Fund are  insufficient  for
11        that  purpose,  and for making transfers pursuant to this
12        subsection (d).
13             (2)  The Director shall  order  payment  of  refunds
14        resulting from overpayment of tax liability under Section
15        201  of  this Act from the Income Tax Refund Fund only to
16        the extent that amounts collected pursuant to Section 201
17        of this Act and transfers pursuant to this subsection (d)
18        and item (3) of subsection (c) have  been  deposited  and
19        retained in the Fund.
20             (3)  As  soon  as  possible  after  the  end of each
21        fiscal year, the Director shall order transferred and the
22        State Treasurer and State Comptroller shall transfer from
23        the Income Tax Refund Fund to the Personal  Property  Tax
24        Replacement  Fund an amount, certified by the Director to
25        the Comptroller,  equal  to  the  excess  of  the  amount
26        collected  pursuant to subsections (c) and (d) of Section
27        201 of this Act deposited into the Income Tax Refund Fund
28        during  the  fiscal  year  over  the  amount  of  refunds
29        resulting  from  overpayment  of  tax   liability   under
30        subsections  (c)  and (d) of Section 201 of this Act paid
31        from the Income Tax Refund Fund during the fiscal year.
32             (4)  As soon as  possible  after  the  end  of  each
33        fiscal year, the Director shall order transferred and the
34        State Treasurer and State Comptroller shall transfer from
 
                            -150-    LRB093 04198 SJM 04242 b
 1        the  Personal Property Tax Replacement Fund to the Income
 2        Tax Refund Fund an amount, certified by the  Director  to
 3        the  Comptroller,  equal  to  the excess of the amount of
 4        refunds resulting from overpayment of tax liability under
 5        subsections (c) and (d) of Section 201 of this  Act  paid
 6        from  the  Income  Tax Refund Fund during the fiscal year
 7        over the amount collected pursuant to subsections (c) and
 8        (d) of Section 201 of this Act deposited into the  Income
 9        Tax Refund Fund during the fiscal year.
10             (4.5)  As  soon  as possible after the end of fiscal
11        year  1999  and  of  each  fiscal  year  thereafter,  the
12        Director shall order transferred and the State  Treasurer
13        and  State Comptroller shall transfer from the Income Tax
14        Refund Fund to  the  General  Revenue  Fund  any  surplus
15        remaining  in the Income Tax Refund Fund as of the end of
16        such fiscal year; excluding for fiscal years 2000,  2001,
17        and 2002 amounts attributable to transfers under item (3)
18        of  subsection (c) less refunds resulting from the earned
19        income tax credit.
20             (5)  This Act shall constitute  an  irrevocable  and
21        continuing  appropriation from the Income Tax Refund Fund
22        for the purpose of paying refunds upon the order  of  the
23        Director  in  accordance  with  the  provisions  of  this
24        Section.
25        (e)  Deposits  into the Education Assistance Fund and the
26    Income Tax Surcharge Local Government Distributive Fund.
27        On July 1, 1991, and thereafter, of the amounts collected
28    pursuant to subsections (a) and (b) of Section  201  of  this
29    Act,  minus  deposits  into  the  Income Tax Refund Fund, the
30    Department shall deposit 7.3% into the  Education  Assistance
31    Fund  in  the  State  Treasury.   Beginning July 1, 1991, and
32    continuing through January 31, 1993, of the amounts collected
33    pursuant to subsections (a) and (b) of  Section  201  of  the
34    Illinois  Income  Tax Act, minus deposits into the Income Tax
 
                            -151-    LRB093 04198 SJM 04242 b
 1    Refund Fund, the  Department  shall  deposit  3.0%  into  the
 2    Income  Tax  Surcharge  Local Government Distributive Fund in
 3    the  State  Treasury.   Beginning  February   1,   1993   and
 4    continuing  through  June  30, 1993, of the amounts collected
 5    pursuant to subsections (a) and (b) of  Section  201  of  the
 6    Illinois  Income  Tax Act, minus deposits into the Income Tax
 7    Refund Fund, the  Department  shall  deposit  4.4%  into  the
 8    Income  Tax  Surcharge  Local Government Distributive Fund in
 9    the State Treasury.  Beginning July 1, 1993,  and  continuing
10    through  June  30,  1994,  of  the  amounts  collected  under
11    subsections  (a)  and  (b)  of Section 201 of this Act, minus
12    deposits into the Income  Tax  Refund  Fund,  the  Department
13    shall  deposit  1.475%  into  the  Income Tax Surcharge Local
14    Government Distributive Fund in the State Treasury.
15        (f)  Deposits  into  the  School  District  Property  Tax
16    Relief Fund and Common School Fund.  Of the amounts collected
17    pursuant to subsections (a), (b)(4)(ii), (b)(5),  (b)(9)(ii),
18    and  (b)(10)  of Section 201 of this Act, minus deposits into
19    the Income Tax Refund  Fund,  the  Department  shall  deposit
20    two-thirds  of  the  increase  in revenue attributable to the
21    increase in tax rates imposed under this  amendatory  Act  of
22    the  93rd  General Assembly into the School District Property
23    Tax Relief Fund and one-third  of  the  increase  in  revenue
24    attributable  to the increase in tax rates imposed under this
25    amendatory Act of the 93rd General Assembly into  the  Common
26    School Fund.
27    (Source:  P.A.  91-212,  eff.  7-20-99;  91-239, eff. 1-1-00;
28    91-700, eff.  5-11-00;  91-704,  eff.  7-1-00;  91-712,  eff.
29    7-1-00;  92-11,  eff.  6-11-01;  92-16, eff. 6-28-01; 92-600,
30    eff. 6-28-02.)

31        Section 15-15.  The  Property  Tax  Code  is  amended  by
32    changing  Sections  18-255,  20-15,  and  21-30 and by adding
33    Section 18-178 as follows:
 
                            -152-    LRB093 04198 SJM 04242 b
 1        (35 ILCS 200/18-178 new)
 2        Sec.   18-178.  Educational   purposes   tax   abatement.
 3    Beginning with taxes levied for 2003 (payable in  2004),  the
 4    county   clerk   must   determine  the  final  extension  for
 5    educational purposes for all taxable  property  in  a  school
 6    district located in the county or for the taxable property of
 7    that  part of a school district located in the county, taking
 8    into account the maximum rate, levy, and extension authorized
 9    under the Property Tax Extension Limitation Law, the Truth in
10    Taxation Law, and any other statute. The  county  clerk  must
11    then  abate  the  extension for educational purposes for each
12    school district or part of a school district in the county in
13    the amount of the school district property tax  relief  grant
14    certified  to  the  county  clerk for that school district or
15    part of a school district by the Department of Revenue  under
16    Section  6z-59  of  the  State  Finance  Act.  When the final
17    extension for educational purposes has  been  determined  and
18    abated,  the  county  clerk  must  notify  the  Department of
19    Revenue.
20        The county clerk must determine the reduced amount of the
21    tax for educational purposes  to  be  billed  by  the  county
22    collector  and  paid  by  each  taxpayer  in  a  given school
23    district by  re-calculating  the  tax  rate  for  educational
24    purposes  for  that  school  district  based  on  the reduced
25    extension amount  after  abatement.  This  reduced  extension
26    amount  shall  be used only for determining the amount of the
27    tax bill. The extension amount for  educational  purposes  as
28    originally  calculated before abatement is the official final
29    extension for educational purposes and must be used  for  all
30    other purposes, including determining the maximum rate, levy,
31    and  extension  authorized  under  the Property Tax Extension
32    Limitation Law, the Truth in  Taxation  Law,  and  any  other
33    statute  and  the maximum amount of tax anticipation warrants
34    under Section 17-16 of the School Code.
 
                            -153-    LRB093 04198 SJM 04242 b
 1        (35 ILCS 200/18-255)
 2        Sec. 18-255.  Abstract  of  assessments  and  extensions.
 3    When  the  collector's  books are completed, the county clerk
 4    shall  make  a  complete  statement  of  the  assessment  and
 5    extensions,  in  conformity  to  the  instructions   of   the
 6    Department.  The  clerk  shall  certify  the statement to the
 7    Department. Beginning with the 2003 levy year, the Department
 8    shall require the statement to include a separate listing  of
 9    the extensions subject to abatement under Section 18-178.
10    (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)

11        (35 ILCS 200/20-15)
12        Sec.  20-15.   Information on bill or separate statement.
13    The amount of tax  due  and  rates  shown  on  the  tax  bill
14    pursuant  to this Section shall be net of any abatement under
15    Section 18-178.  There shall be printed on each bill, or on a
16    separate slip which shall be mailed with the bill:
17             (a)  a statement itemizing the rate at  which  taxes
18        have  been  extended  for each of the taxing districts in
19        the county in whose district the property is located, and
20        in those counties utilizing  electronic  data  processing
21        equipment  the  dollar  amount of tax due from the person
22        assessed allocable to each  of  those  taxing  districts,
23        including  a  separate  statement of the dollar amount of
24        tax due which is allocable to  a  tax  levied  under  the
25        Illinois  Local Library Act or to any other tax levied by
26        a municipality or township for public library purposes,
27             (b)  a separate statement for  each  of  the  taxing
28        districts  of  the  dollar  amount  of  tax  due which is
29        allocable to a tax levied under the Illinois Pension Code
30        or to any other tax levied by a municipality or  township
31        for public pension or retirement purposes,
32             (c)  the total tax rate,
33             (d)  the total amount of tax due, and
 
                            -154-    LRB093 04198 SJM 04242 b
 1             (e)  the  amount  by which the total tax and the tax
 2        allocable  to  each  taxing  district  differs  from  the
 3        taxpayer's last prior tax bill, and
 4             (f)  the amount of tax abated under  Section  18-178
 5        labeled "Your School Tax Refund".
 6        The  county treasurer shall ensure that only those taxing
 7    districts in which a parcel of property is located  shall  be
 8    listed on the bill for that property.
 9        In all counties the statement shall also provide:
10             (1)  the  property  index  number  or other suitable
11        description,
12             (2)  the assessment of the property,
13             (3)  the equalization factors imposed by the  county
14        and by the Department, and
15             (4)  the  equalized  assessment  resulting  from the
16        application of the  equalization  factors  to  the  basic
17        assessment.
18        In  all  counties  which  do  not  classify  property for
19    purposes of taxation, for property on which a  single  family
20    residence  is  situated  the  statement  shall also include a
21    statement to reflect the fair cash value determined  for  the
22    property.   In  all  counties  which  classify  property  for
23    purposes of taxation in accordance with Section 4 of  Article
24    IX  of  the Illinois Constitution, for parcels of residential
25    property  in  the  lowest   assessment   classification   the
26    statement  shall also include a statement to reflect the fair
27    cash value determined for the property.
28        In all counties, the statement shall include  information
29    that  certain  taxpayers  may  be  eligible  for  the  Senior
30    Citizens   and  Disabled  Persons  Property  Tax  Relief  and
31    Pharmaceutical  Assistance  Act  and  that  applications  are
32    available from the Illinois Department of Revenue.
33        In  counties  which  use  the  estimated  or  accelerated
34    billing methods, these statements shall only be provided with
 
                            -155-    LRB093 04198 SJM 04242 b
 1    the final installment of taxes due, except that the statement
 2    under item (f) shall be included with  both  installments  in
 3    those   counties   under  estimated  or  accelerated  billing
 4    methods, the first billing showing the amount  deducted  from
 5    the  first  installment,  and  the  final billing showing the
 6    total tax abated for the levy year under Section 18-178.  The
 7    provisions of this Section create a mandatory statutory duty.
 8    They  are  not merely directory or discretionary. The failure
 9    or neglect of the collector to mail the bill, or the  failure
10    of  the  taxpayer  to  receive the bill, shall not affect the
11    validity of any tax, or the liability for the payment of  any
12    tax.
13    (Source: P.A. 91-699, eff. 1-1-01.)

14        (35 ILCS 200/21-30)
15        Sec.  21-30.  Accelerated  billing. Except as provided in
16    this Section and Section 21-40, in counties with 3,000,000 or
17    more inhabitants, by January 31 annually, estimated tax bills
18    setting out the first installment of property taxes  for  the
19    preceding  year,  payable in that year, shall be prepared and
20    mailed. The first installment of taxes on the  estimated  tax
21    bills  shall be computed at 50% of the total of each tax bill
22    before the abatement of taxes under Section  18-178  for  the
23    preceding  year,  less  an estimate of one half of the school
24    district property tax  relief  grant  for  the  current  year
25    determined based on information provided by the Department of
26    Revenue  and  any  other information available.  If, prior to
27    the preparation of the estimated tax bills, a certificate  of
28    error  has  been  either  approved  by  a  court on or before
29    November 30 of the preceding year or  certified  pursuant  to
30    Section 14-15 on or before November 30 of the preceding year,
31    then  the  first  installment  of  taxes on the estimated tax
32    bills shall be computed at 50% of the total taxes before  the
33    abatement  of  taxes  under  Section 18-178 for the preceding
 
                            -156-    LRB093 04198 SJM 04242 b
 1    year as corrected  by  the  certificate  of  error,  less  an
 2    estimate  of  one  half  of  the school district property tax
 3    relief  grant  for  the  current  year  determined  based  on
 4    information provided by the Department  of  Revenue  and  any
 5    other  information available. By June 30 annually, actual tax
 6    bills shall be prepared and mailed. These bills shall set out
 7    total taxes due and the amount of estimated taxes  billed  in
 8    the  first  installment, and shall state the balance of taxes
 9    due for that year as represented  by  the  sum  derived  from
10    subtracting  the  amount  of  the  first installment from the
11    total taxes due for that year.
12        The county board may provide by  ordinance,  in  counties
13    with 3,000,000 or more inhabitants, for taxes to be paid in 4
14    installments.   For  the levy year for which the ordinance is
15    first effective and each subsequent year, estimated tax bills
16    setting out the first, second, and third installment of taxes
17    for the preceding  year,  payable  in  that  year,  shall  be
18    prepared  and  mailed  not  later  than the date specified by
19    ordinance.  Each installment on estimated tax bills shall  be
20    computed  at  25%  of  the  total  of  each  tax bill for the
21    preceding year. By  the  date  specified  in  the  ordinance,
22    actual  tax  bills shall be prepared and mailed.  These bills
23    shall set out total taxes due and  the  amount  of  estimated
24    taxes billed in the first, second, and third installments and
25    shall  state  the  balance  of  taxes  due  for  that year as
26    represented by the sum derived from subtracting the amount of
27    the estimated installments from the total taxes due for  that
28    year.
29        The  county  board of any county with less than 3,000,000
30    inhabitants  may,  by  ordinance  or  resolution,  adopt   an
31    accelerated  method  of  tax  billing.  The  county board may
32    subsequently rescind the ordinance or resolution  and  revert
33    to the method otherwise provided for in this Code.
34        Taxes  levied  on homestead property in which a member of
 
                            -157-    LRB093 04198 SJM 04242 b
 1    the National Guard or reserves of the  armed  forces  of  the
 2    United  States  who  was  called  to  active duty on or after
 3    August 1, 1990, and who has an ownership interest  shall  not
 4    be  deemed  delinquent  and  no  interest  shall accrue or be
 5    charged as a penalty on such taxes due and payable in 1991 or
 6    1992 until one year after that  member  returns  to  civilian
 7    status.
 8    (Source: P.A. 92-475, eff. 8-23-01.)

 9                             ARTICLE 20

10        Section  20-5.  The  School  Code  is amended by changing
11    Sections 1D-1, 2-3.64, 14-7.01, 14-7.02, 14-13.01,  and  29-5
12    and   adding   Sections   2-3.51.10,   2-3.51.15,  2-3.51.20,
13    2-3.51.25, 2-3.51.30, and 29-5a as follows:

14        (105 ILCS 5/1D-1)
15        Sec. 1D-1.  Block grant funding.
16        (a)  For  fiscal  year  1996   and   each   fiscal   year
17    thereafter,  the  State  Board  of Education shall award to a
18    school  district  having  a  population   exceeding   500,000
19    inhabitants   a   general   education   block  grant  and  an
20    educational services block grant, determined as  provided  in
21    this  Section,  in  lieu  of  distributing  to  the  district
22    separate   State   funding  for  the  programs  described  in
23    subsections (b) and (c).  The  provisions  of  this  Section,
24    however,  do not apply to any federal funds that the district
25    is entitled to receive.  In accordance with  Section  2-3.32,
26    all  block  grants are subject to an audit.  Therefore, block
27    grant receipts and block grant expenditures shall be recorded
28    to the appropriate fund code for the designated block grant.
29        (b)  The general education block grant shall include  the
30    following programs: REI Initiative, Summer Bridges, Preschool
31    At  Risk, K-6 Comprehensive Arts, School Improvement Support,
 
                            -158-    LRB093 04198 SJM 04242 b
 1    Urban  Education,  Scientific   Literacy,   Substance   Abuse
 2    Prevention,  Second  Language  Planning,  Staff  Development,
 3    Outcomes  and  Assessment,  K-6 Reading Improvement, Truants'
 4    Optional Education, Hispanic Programs, Agriculture Education,
 5    Gifted Education, Parental Education, Prevention  Initiative,
 6    Report Cards, and Criminal Background Investigations, General
 7    Purpose  Block  Grant  Program,  Early  Childhood Block Grant
 8    Program,   Reading   Improvement   Block    Grant    Program,
 9    Professional   Development   Block  Grant  Program,  Academic
10    Difficulty  Block  Grant  Program,   Career   and   Technical
11    Education  Block  Grant  Program,  and  Alternative Education
12    Block Grant Program.  Notwithstanding any other provision  of
13    law, all amounts paid under the general education block grant
14    from  State  appropriations  to  a  school district in a city
15    having a population exceeding 500,000  inhabitants  shall  be
16    appropriated  and  expended by the board of that district for
17    any of the programs included in the block grant or any of the
18    board's lawful purposes.
19        (c)  The educational services block grant  shall  include
20    the  following  programs:  Bilingual,  Regular and Vocational
21    Transportation as provided in Section 29-5a, State Lunch  and
22    Free   Breakfast   Program,   Special  Education  (Personnel,
23    Extraordinary, Transportation, Orphanage,  Private  Tuition),
24    Summer    School,    Educational    Service    Centers,   and
25    Administrator's  Academy.   This  subsection  (c)  does   not
26    relieve  the  district  of  its  obligation  to  provide  the
27    services required under a program that is included within the
28    educational services block grant.  It is the intention of the
29    General   Assembly   in   enacting  the  provisions  of  this
30    subsection (c) to relieve the district of the  administrative
31    burdens  that  impede efficiency and accompany single-program
32    funding.  The General Assembly encourages the board to pursue
33    mandate waivers pursuant to Section 2-3.25g.
34        (d)  For  fiscal  year  1996   and   each   fiscal   year
 
                            -159-    LRB093 04198 SJM 04242 b
 1    thereafter,  the  amount of the district's block grants shall
 2    be determined as follows: (i) with respect  to  each  program
 3    that  is included within each block grant, the district shall
 4    receive an amount equal to the same percentage of the current
 5    fiscal year  appropriation  made  for  that  program  as  the
 6    percentage of the appropriation received by the district from
 7    the 1995 fiscal year appropriation made for that program, and
 8    (ii)  the  total  amount  that  is due the district under the
 9    block grant shall be the aggregate of the  amounts  that  the
10    district  is  entitled  to  receive  for the fiscal year with
11    respect to each program that is  included  within  the  block
12    grant  that  the  State  Board  of  Education shall award the
13    district under this Section for that  fiscal  year.   In  the
14    case  of  the  Summer  Bridges  program,  the  amount  of the
15    district's block grant shall be equal to 44% of the amount of
16    the current fiscal year appropriation made for that program.
17        (e)  The district is not required to file any application
18    or other claim in order to receive the block grants to  which
19    it  is  entitled  under  this  Section.  The  State  Board of
20    Education shall make payments to the district of amounts  due
21    under the district's block grants on a schedule determined by
22    the State Board of Education.
23        (f)  A  school  district  to  which  this Section applies
24    shall report to the State Board of Education on  its  use  of
25    the  block  grants in such form and detail as the State Board
26    of Education may specify.
27        (g)  This paragraph provides for the treatment  of  block
28    grants  under  Article  1C  for  purposes  of calculating the
29    amount of block grants for a  district  under  this  Section.
30    Those  block  grants  under Article 1C are, for this purpose,
31    treated as included in the amount of  appropriation  for  the
32    various  programs  set  forth  in  paragraph  (b) above.  The
33    appropriation in each current  fiscal  year  for  each  block
34    grant under Article 1C shall be treated for these purposes as
 
                            -160-    LRB093 04198 SJM 04242 b
 1    appropriations  for  the  individual program included in that
 2    block grant.  The proportion of each block grant so allocated
 3    to each such program included in it shall be  the  proportion
 4    which   the   appropriation  for  that  program  was  of  all
 5    appropriations for such purposes now in that block grant,  in
 6    fiscal 1995.
 7        Payments  to  the school district under this Section with
 8    respect  to  each  program  for  which  payments  to   school
 9    districts generally, as of the date of this amendatory Act of
10    the 92nd General Assembly, are on a reimbursement basis shall
11    continue to be made to the district on a reimbursement basis,
12    pursuant  to  the  provisions  of  this  Code governing those
13    programs.
14        (h)  Notwithstanding any  other  provision  of  law,  any
15    school  district  receiving  a block grant under this Section
16    may classify all or a portion of the funds that  it  receives
17    in  a  particular fiscal year from any block grant authorized
18    under this Code or from general State aid pursuant to Section
19    18-8.05 of this Code (other than supplemental  general  State
20    aid) as funds received in connection with any funding program
21    for  which  it is entitled to receive funds from the State in
22    that fiscal year (including, without limitation, any  funding
23    program  referred  to  in  subsection  (c)  of this Section),
24    regardless of the source  or  timing  of  the  receipt.   The
25    district  may  not  classify  more funds as funds received in
26    connection with the funding  program  than  the  district  is
27    entitled  to  receive  in  that fiscal year for that program.
28    Any classification by a district must be made by a resolution
29    of its board of education.  The resolution must identify  the
30    amount  of  any  block  grant  or  general  State  aid  to be
31    classified under this subsection (h)  and  must  specify  the
32    funding  program  to  which  the  funds  are to be treated as
33    received  in  connection  therewith.   This   resolution   is
34    controlling  as  to  the  classification  of funds referenced
 
                            -161-    LRB093 04198 SJM 04242 b
 1    therein.  A certified copy of the resolution must be sent  to
 2    the  State  Superintendent of Education. The resolution shall
 3    still take effect even though a copy of  the  resolution  has
 4    not  been  sent to the State Superintendent of Education in a
 5    timely manner.  No classification under this  subsection  (h)
 6    by  a  district  shall  affect  the total amount or timing of
 7    money the district is entitled to receive  under  this  Code.
 8    No  classification  under  this  subsection (h) by a district
 9    shall in any way relieve the  district  from  or  affect  any
10    requirements  that  otherwise would apply with respect to the
11    block grant  as  provided  in  this  Section,  including  any
12    accounting  of  funds  by  source,  reporting expenditures by
13    original  source  and  purpose,  reporting  requirements,  or
14    requirements of provision of services.
15    (Source: P.A. 91-711,  eff.  7-1-00;  92-568,  eff.  6-26-02;
16    92-651, eff. 7-11-02.)

17        (105 ILCS 5/2-3.51.10 new)
18        Sec. 2-3.51.10.  General Purpose Block Grant Program.
19        (a)  The State Board of Education is authorized to fund a
20    General Purpose Block Grant Program, a multi-purpose grant to
21    be  used  to  improve  the  level  of education and safety of
22    students  from  kindergarten  through  grade  12  in   school
23    districts by eliminating barriers to student learning.
24        (b)  The   General  Purpose  Block  Grant  Program  shall
25    provide funding for general purposes  and  school  safety.  A
26    school  district  or laboratory school (as defined in Section
27    18-8.05 of this Code) is not required to file an  application
28    in order to receive the funding to which it is entitled under
29    this  Section.  Funds for the program shall be distributed to
30    school districts and laboratory schools based  on  the  prior
31    year's best 3-month average daily attendance. Distribution of
32    moneys  to  school  districts and laboratory schools shall be
33    made in 2 installments each fiscal year, one  payment  on  or
 
                            -162-    LRB093 04198 SJM 04242 b
 1    before October 30 and one payment on or before April 30.
 2        (c)  Grants under the General Purpose Block Grant Program
 3    shall  be  awarded provided there is an appropriation for the
 4    program, and funding levels  for  each  school  district  and
 5    laboratory  school  shall be prorated according to the amount
 6    of the appropriation in a manner as determined by  the  State
 7    Board of Education.
 8        (d)  The  State  Board of Education shall adopt any rules
 9    necessary for implementation of  the  General  Purpose  Block
10    Grant Program.

11        (105 ILCS 5/2-3.51.15 new)
12        Sec.  2-3.51.15.  Professional  Development  Block  Grant
13    Program.
14        (a)  To  improve  the  level  of  education  and  teacher
15    quality, the State Board of Education is authorized to fund a
16    Professional Development Block Grant Program.
17        (b)  The  Professional  Development  Block  Grant Program
18    shall provide funding  for  the  development  and  continuing
19    education of teachers, administrators, and other certificated
20    educational   personnel.  Funds  for  the  program  shall  be
21    distributed to school districts and  laboratory  schools  (as
22    defined  in  Section 18-8.05 of this Code) based on the prior
23    year's number of  full-time  equivalent  classroom  teachers.
24    Distribution  of  moneys  to  school districts and laboratory
25    schools shall be made in 2 installments each fiscal year, one
26    payment on or before October 30 and one payment on or  before
27    April 30.
28        (c)  Grants  under  the  Professional  Development  Block
29    Grant   Program   shall  be  awarded  provided  there  is  an
30    appropriation for the program, and funding  levels  for  each
31    school  district  and  laboratory  school  shall  be prorated
32    according to the amount of the appropriation in a  manner  as
33    determined  by  the  State Board of Education. Two percent of
 
                            -163-    LRB093 04198 SJM 04242 b
 1    the appropriated amount shall be used  to  support  statewide
 2    leadership activities.
 3        (d)  The  State  Board of Education shall adopt any rules
 4    necessary  for  the  implementation   of   the   Professional
 5    Development Block Grant Program.

 6        (105 ILCS 5/2-3.51.20 new)
 7        Sec. 2-3.51.20.  Academic Difficulty Block Grant Program.
 8        (a)  To improve the educational level of students at-risk
 9    of   academic  failure,  the  State  Board  of  Education  is
10    authorized  to  fund  an  Academic  Difficulty  Block   Grant
11    Program.
12        (b)  The  Academic  Difficulty  Block Grant Program shall
13    provide funding to school districts on the  Academic  Warning
14    List  or  Academic Watch List. Funds for the program shall be
15    distributed to school districts or consortia of districts via
16    grants for efforts that adhere to specific  requirements  and
17    expectations established by the State Board of Education.
18        (c)  Grants  under  the  Academic  Difficulty Block Grant
19    Program shall be awarded provided there is  an  appropriation
20    for  the program, and funding levels for each school district
21    shall  be  prorated  according   to   the   amount   of   the
22    appropriation in a manner as determined by the State Board of
23    Education.  Two  percent  of the appropriated amount shall be
24    used to support statewide leadership activities.
25        (d)  The State Board of Education shall adopt  any  rules
26    necessary  for  the implementation of the Academic Difficulty
27    Block Grant Program.

28        (105 ILCS 5/2-3.51.25 new)
29        Sec. 2-3.51.25.  Career  and  Technical  Education  Block
30    Grant Program.
31        (a)  To  improve students career and technical skills and
32    provide linkages between the classroom and the workplace, the
 
                            -164-    LRB093 04198 SJM 04242 b
 1    State Board of Education is authorized to fund a  Career  and
 2    Technical Education Block Grant Program.
 3        (b)  The  Career  and  Technical  Education  Block  Grant
 4    Program  shall provide funding to school districts, community
 5    college districts, secondary regional vocational systems, and
 6    employment regions engaged in career awareness and  technical
 7    preparation  activities.  Funds  for  the  program  shall  be
 8    distributed via competitive and formula-driven grants.
 9        (c)  Grants  under  the  Career  and  Technical Education
10    Block Grant Program shall be awarded  provided  there  is  an
11    appropriation  for  the  program, and funding levels for each
12    eligible entity shall be prorated according to the amount  of
13    the  appropriation  in  a  manner  as determined by the State
14    Board of Education. Two percent of  the  appropriated  amount
15    shall be used to support statewide leadership activities.
16        (d)  The  State  Board of Education shall adopt any rules
17    necessary for the implementation of the Career and  Technical
18    Education Block Grant Program.

19        (105 ILCS 5/2-3.51.30 new)
20        Sec.   2-3.51.30.  Alternative   Education   Block  Grant
21    Program. To  provide  services  to  students  in  alternative
22    education   settings,   the   State  Board  of  Education  is
23    authorized to  fund  an  Alternative  Education  Block  Grant
24    Program.
25        (a)  The  Alternative Education Block Grant Program shall
26    provide funding for regional offices of education  conducting
27    alternative  or  safe  school programs or both. Funds for the
28    program shall be distributed  via  a  formula  based  on  the
29    number  of students in attendance and the low-income count of
30    school districts in the region.
31        (b)  Grants under the Alternative Education  Block  Grant
32    Program  shall  be awarded provided there is an appropriation
33    for the program, and funding levels for each  district  shall
 
                            -165-    LRB093 04198 SJM 04242 b
 1    be prorated according to the amount of the appropriation in a
 2    manner  as  determined  by  the State Board of Education. Two
 3    percent of the appropriated amount shall be used  to  support
 4    statewide leadership activities.
 5        (c)  The  State  Board of Education shall adopt any rules
 6    necessary for the implementation of the Alternative Education
 7    Block Grant Program.

 8        (105 ILCS 5/2-3.64) (from Ch. 122, par. 2-3.64)
 9        Sec. 2-3.64.  State goals and assessment.
10        (a)  Beginning in the 1998-1999 school  year,  the  State
11    Board    of   Education   shall   establish   standards   and
12    periodically, in collaboration with local  school  districts,
13    conduct  studies of student performance in the learning areas
14    of fine arts and physical development/health.  Beginning with
15    the 1998-1999 school year, the State Board of Education shall
16    annually test: (i) all pupils enrolled in the 3rd,  5th,  and
17    8th  grades  in  English language arts (reading, writing, and
18    English  grammar)  and  mathematics;  and  (ii)  all   pupils
19    enrolled  in  the  4th  and  7th grades in the biological and
20    physical  sciences  and   the   social   sciences   (history,
21    geography,  civics,  economics,  and  government).  The State
22    Board of Education shall  establish  the  academic  standards
23    that  are to be applicable to pupils who are subject to State
24    tests under this Section beginning with the 1998-1999  school
25    year.   However,  the  State  Board  of  Education  shall not
26    establish any such standards  in  final  form  without  first
27    providing  opportunities  for  public participation and local
28    input in the development of  the  final  academic  standards.
29    Those opportunities shall include a well-publicized period of
30    public  comment,  public  hearings  throughout the State, and
31    opportunities to file written comments.  Beginning  with  the
32    1998-99  school  year  and  thereafter,  the State tests will
33    identify pupils in the 3rd grade or 5th grade who do not meet
 
                            -166-    LRB093 04198 SJM 04242 b
 1    the State standards.  If, by performance on the  State  tests
 2    or  local  assessments  or  by  teacher judgment, a student's
 3    performance is determined  to  be  2  or  more  grades  below
 4    current   placement,   the   student   shall  be  provided  a
 5    remediation program developed by the district in consultation
 6    with a parent or  guardian.  Such  remediation  programs  may
 7    include,   but   shall   not  be  limited  to,  increased  or
 8    concentrated instructional time,  a  remedial  summer  school
 9    program  of  not  less  than 90 hours, improved instructional
10    approaches,  tutorial  sessions,  retention  in  grade,   and
11    modifications  to  instructional  materials.   Each pupil for
12    whom a remediation program is developed under this subsection
13    shall be required to enroll in and  attend  whatever  program
14    the   district  determines  is  appropriate  for  the  pupil.
15    Districts may combine students in remediation programs  where
16    appropriate  and  may  cooperate  with other districts in the
17    design  and  delivery  of  those  programs.   The  parent  or
18    guardian of  a  student  required  to  attend  a  remediation
19    program  under  this Section shall be given written notice of
20    that requirement by the school  district  a  reasonable  time
21    prior  to  commencement  of  the remediation program that the
22    student is to attend.  The State  shall  be  responsible  for
23    providing  school  districts  with  the  new  and  additional
24    funding,  under Section 2-3.51.10 of this Code 2-3.51.5 or by
25    other or additional means, that is  required  to  enable  the
26    districts  to operate remediation programs for the pupils who
27    are required to enroll in and  attend  those  programs  under
28    this  Section.   Every  individualized educational program as
29    described in Article 14 shall identify if the State  test  or
30    components  thereof  are  appropriate  for that student.  For
31    those pupils for whom the State tests or  components  thereof
32    are  not  appropriate,  the  State  Board  of Education shall
33    develop rules and regulations governing the administration of
34    alternative   tests   prescribed   within   each    student's
 
                            -167-    LRB093 04198 SJM 04242 b
 1    individualized  educational  program which are appropriate to
 2    the disability of each student.  All  pupils  who  are  in  a
 3    State  approved  transitional  bilingual education program or
 4    transitional program of instruction shall participate in  the
 5    State  tests.   Any  student who has been enrolled in a State
 6    approved bilingual education program  less  than  3  academic
 7    years  shall  be exempted if the student's lack of English as
 8    determined by an English language proficiency test would keep
 9    the student from understanding the test, and  that  student's
10    district  shall have an alternative test program in place for
11    that student.  The State Board of Education shall  appoint  a
12    task   force   of   concerned   parents,   teachers,   school
13    administrators   and   other   professionals   to  assist  in
14    identifying    such    alternative     tests.      Reasonable
15    accommodations  as prescribed by the State Board of Education
16    shall be provided for  individual  students  in  the  testing
17    procedure.  All test procedures prescribed by the State Board
18    of Education shall require: (i) that each test used for State
19    and local student testing under this Section identify by name
20    the  pupil  taking  the test; (ii) that the name of the pupil
21    taking the test be placed on the test at the time the test is
22    taken; (iii) that the results or scores of  each  test  taken
23    under  this  Section  by  a  pupil  of the school district be
24    reported to that district and identify by name the pupil  who
25    received  the  reported  results or scores; and (iv) that the
26    results or scores of each test taken under  this  Section  be
27    made  available  to  the  parents of the pupil.  In addition,
28    beginning with the 2000-2001 school year and in  each  school
29    year  thereafter,  the  highest scores and performance levels
30    attained by  a  student  on  the  Prairie  State  Achievement
31    Examination administered under subsection (c) of this Section
32    shall become part of the student's permanent record and shall
33    be   entered   on   the   student's  transcript  pursuant  to
34    regulations  that  the  State  Board   of   Education   shall
 
                            -168-    LRB093 04198 SJM 04242 b
 1    promulgate  for that purpose in accordance with Section 3 and
 2    subsection (e) of Section 2 of the  Illinois  School  Student
 3    Records Act.  Beginning with the 1998-1999 school year and in
 4    every  school year thereafter, scores received by students on
 5    the State assessment tests administered in grades 3 through 8
 6    shall be placed into students' temporary records.  The  State
 7    Board  of  Education  shall  establish a common month in each
 8    school year for which State testing shall occur to  meet  the
 9    objectives  of  this  Section.   However, if the schools of a
10    district are closed and classes are not scheduled during  any
11    week  that  is established by the State Board of Education as
12    the week of the month when State testing under  this  Section
13    shall  occur, the school district may administer the required
14    State testing at any time up to 2 weeks  following  the  week
15    established  by the State Board of Education for the testing,
16    so long as the school  district  gives  the  State  Board  of
17    Education written notice of its intention to deviate from the
18    established  schedule  by  December  1  of the school year in
19    which falls the  week  established  by  the  State  Board  of
20    Education  for the testing.  The maximum time allowed for all
21    actual testing required  under  this  subsection  during  the
22    school  year shall not exceed 25 hours as allocated among the
23    required tests by the State Board of Education.
24        (a-5)  All tests administered pursuant  to  this  Section
25    shall  be  academically  based.   For  the  purposes  of this
26    Section  "academically  based   tests"   shall   mean   tests
27    consisting  of  questions and answers that are measurable and
28    quantifiable to measure the knowledge, skill, and ability  of
29    students  in  the  subject  matters  covered  by  tests.  The
30    scoring of academically based tests shall be reliable, valid,
31    unbiased and shall meet the guidelines for  test  development
32    and use prescribed by the American Psychological Association,
33    the  National  Council of Measurement and Evaluation, and the
34    American Educational Research Association. Academically based
 
                            -169-    LRB093 04198 SJM 04242 b
 1    tests  shall  not  include  assessments  or  evaluations   of
 2    attitudes,  values,  or  beliefs,  or testing of personality,
 3    self-esteem, or self-concept. Nothing in this amendatory  Act
 4    is   intended,   nor  shall  it  be  construed,  to  nullify,
 5    supersede, or contradict the legislative intent  on  academic
 6    testing expressed during the passage of HB 1005/P.A. 90-296.
 7        Beginning  in  the 1998-1999 school year, the State Board
 8    of Education may, on a pilot  basis,  include  in  the  State
 9    assessments in reading and math at each grade level tested no
10    more  than  2  short answer questions, where students have to
11    respond  in  brief  to   questions   or   prompts   or   show
12    computations,  rather  than select from alternatives that are
13    presented.  In the first year that such questions  are  used,
14    scores on the short answer questions shall not be reported on
15    an  individual student basis but shall be aggregated for each
16    school building in which the tests are  given.   State-level,
17    school,  and  district scores shall be reported both with and
18    without the results of the short answer questions so that the
19    effect of short  answer  questions  is  clearly  discernible.
20    Beginning in the second year of this pilot program, scores on
21    the  short  answer  questions  shall  be  reported both on an
22    individual student basis and on a school  building  basis  in
23    order   to  monitor  the  effects  of  teacher  training  and
24    curriculum improvements on score results.
25        The State Board of Education shall not continue  the  use
26    of   short   answer   questions   in  the  math  and  reading
27    assessments, or extend the use of  such  questions  to  other
28    State  assessments,  unless  this  pilot project demonstrates
29    that  the  use  of  short  answer  questions  results  in   a
30    statistically  significant improvement in student achievement
31    as measured on the State assessments for math and reading and
32    is justifiable in terms of cost and student performance.
33        (b)  It shall be the policy of  the  State  to  encourage
34    school  districts  to  continuously test pupil proficiency in
 
                            -170-    LRB093 04198 SJM 04242 b
 1    the fundamental learning areas  in  order  to:   (i)  provide
 2    timely   information   on  individual  students'  performance
 3    relative  to  State  standards  that  is  adequate  to  guide
 4    instructional strategies; (ii)  improve  future  instruction;
 5    and  (iii)  complement  the information provided by the State
 6    testing system described in this  Section.   Each  district's
 7    school  improvement plan must address specific activities the
 8    district intends to implement to assist pupils who by teacher
 9    judgment and test results as prescribed in subsection (a)  of
10    this  Section  demonstrate  that  they  are not meeting State
11    standards or local objectives. Such activities  may  include,
12    but  shall  not be limited to, summer school, extended school
13    day,   special   homework,   tutorial   sessions,    modified
14    instructional   materials,   other   modifications   in   the
15    instructional  program,  reduced  class  size or retention in
16    grade.   To  assist  school  districts   in   testing   pupil
17    proficiency in reading in the primary grades, the State Board
18    shall   make  optional  reading  inventories  for  diagnostic
19    purposes available to each school district that requests such
20    assistance.    Districts   that   administer   the    reading
21    inventories may develop remediation programs for students who
22    perform  in the bottom half of the student population.  Those
23    remediation programs may be funded by moneys  provided  under
24    the General Purpose School Safety and Educational Improvement
25    Block  Grant  Program  established under Section 2-3.51.10 of
26    this Code 2-3.51.5.  Nothing in this  Section  shall  prevent
27    school  districts  from  implementing testing and remediation
28    policies for grades not required under this Section.
29        (c)  Beginning  with  the  2000-2001  school  year,  each
30    school district that  operates  a  high  school  program  for
31    students in grades 9 through 12 shall annually administer the
32    Prairie  State Achievement Examination established under this
33    subsection to its students as set forth below.   The  Prairie
34    State Achievement Examination shall be developed by the State
 
                            -171-    LRB093 04198 SJM 04242 b
 1    Board  of  Education  to  measure  student performance in the
 2    academic areas of reading, writing, mathematics, science, and
 3    social  sciences.   The  State  Board  of   Education   shall
 4    establish  the  academic  standards  that  are  to  apply  in
 5    measuring   student   performance   on   the   Prairie  State
 6    Achievement Examination  including  the  minimum  examination
 7    score  in  each area that will qualify a student to receive a
 8    Prairie State Achievement Award from the State in recognition
 9    of the student's excellent performance.  Each school district
10    that is subject to the requirements of  this  subsection  (c)
11    shall afford all students 2 opportunities to take the Prairie
12    State  Achievement Examination beginning as late as practical
13    during the second semester of  grade  11,  but  in  no  event
14    before  March 1.  The State Board of Education shall annually
15    notify  districts  of  the  weeks  during  which  these  test
16    administrations  shall   be   required   to   occur.    Every
17    individualized educational program as described in Article 14
18    shall  identify  if the Prairie State Achievement Examination
19    or components thereof are appropriate for that student.  Each
20    student,   exclusive   of   a  student  whose  individualized
21    educational program developed under Article 14 identifies the
22    Prairie State Achievement Examination  as  inappropriate  for
23    the  student,  shall  be  required to take the examination in
24    grade  11.   For  each  academic  area  the  State  Board  of
25    Education shall establish the score that  qualifies  for  the
26    Prairie  State  Achievement  Award  on  that  portion  of the
27    examination.  Any student who  fails  to  earn  a  qualifying
28    score  for  a  Prairie  State Achievement Award in any one or
29    more of the academic areas on the initial test administration
30    or who wishes to improve his or her score on any  portion  of
31    the  examination shall be permitted to retake such portion or
32    portions of the examination during grade 12.  Districts shall
33    inform  their  students  of  the  timelines  and   procedures
34    applicable   to   their   participation   in   every   yearly
 
                            -172-    LRB093 04198 SJM 04242 b
 1    administration  of the Prairie State Achievement Examination.
 2    Students   receiving   special   education   services   whose
 3    individualized  educational  programs  identify  the  Prairie
 4    State  Achievement  Examination  as  inappropriate  for  them
 5    nevertheless shall have the option of taking the examination,
 6    which shall be administered to those students  in  accordance
 7    with  standards  adopted   by the State Board of Education to
 8    accommodate the respective disabilities of those students.  A
 9    student who successfully completes all other applicable  high
10    school  graduation  requirements but fails to receive a score
11    on the Prairie State Achievement Examination  that  qualifies
12    the  student for receipt of a Prairie State Achievement Award
13    shall nevertheless qualify for the receipt of a regular  high
14    school diploma.
15        (d)  Beginning   with  the  2002-2003  school  year,  all
16    schools in this State that are part of the  sample  drawn  by
17    the    National   Center   for   Education   Statistics,   in
18    collaboration with their school districts and the State Board
19    of Education, shall administer the  biennial  State  academic
20    assessments  of  4th  and  8th  grade reading and mathematics
21    under the National Assessment of Educational Progress carried
22    out  under  Section  411(b)(2)  of  the  National   Education
23    Statistics  Act  of 1994 (20 U.S.C. 9010) if the Secretary of
24    Education pays the costs of administering the assessments.
25    (Source:  P.A. 91-283, eff. 7-29-99; 92-604, eff. 7-1-02.)

26        (105 ILCS 5/14-7.01) (from Ch. 122, par. 14-7.01)
27        Sec. 14-7.01.   Children  attending  classes  in  another
28    district.)   If  a  child,  resident  of one school district,
29    because of his disability, attends a class or school for  any
30    of  such  types  of  children in another school district, the
31    school district in which he resides shall  grant  the  proper
32    permit,  provide any necessary transportation, and pay to the
33    school   district   maintaining   the   special   educational
 
                            -173-    LRB093 04198 SJM 04242 b
 1    facilities the per capita cost of educating such children.
 2        Such per capita cost shall be computed in  the  following
 3    manner.   The  cost of conducting and maintaining any special
 4    educational facility shall  be  first  determined  and  shall
 5    include  the  following  expenses  applicable  only  to  such
 6    educational  facility under rules and regulations established
 7    by the State Board of Education as follows:
 8        (a)  Salaries   of   teachers,   professional    workers,
 9    necessary    non-certified   workers,   clerks,   librarians,
10    custodial  employees,  readers,  and   any   district   taxes
11    specifically for their pension and retirement benefits.
12        (b)  Educational   supplies   and   equipment   including
13    textbooks.
14        (c)  Administrative costs and communication.
15        (d)  Operation  of  physical plant including heat, light,
16    water, repairs, and maintenance.
17        (e)  Auxiliary  service,   including   up   to   20%   of
18    transportation cost.
19        (f)  Depreciation  of  physical  facilities  at a rate of
20    $200 per pupil, or the actual rental paid  for  the  physical
21    facilities  calculated  on a per pupil basis. From such total
22    cost thus  determined  there  shall  be  deducted  the  State
23    reimbursement  due on account of such educational program for
24    the same year, not  including  any  State  reimbursement  for
25    special   education  transportation  and  offsetting  federal
26    revenue for the program, except federally funded health  care
27    reimbursement  need  not be deducted.  Such net cost shall be
28    divided by the average number  of  pupils  in  average  daily
29    enrollment  in such special education facility for the school
30    year in order to arrive at the net per capita tuition cost.
31        If the child, resident of any school district, because of
32    his disability, attends a class or school  for  any  of  such
33    types  of  children  maintained  in a teacher training center
34    supported by public funds  or  State  institution  of  higher
 
                            -174-    LRB093 04198 SJM 04242 b
 1    learning,  the  resident district shall provide any necessary
 2    transportation and shall be eligible  to  the  transportation
 3    reimbursement provided in Section 14-13.01.
 4        A   resident   district   may,   upon   request,  provide
 5    transportation for residents of the  district  who  meet  the
 6    requirements,  other than the specified age, of children with
 7    disabilities  as  defined  in  Section  14-1.02,  who  attend
 8    classes in another district, and shall make a charge for  any
 9    such  transportation  in an amount equal to the cost thereof,
10    including a reasonable  allowance  for  depreciation  of  the
11    vehicles used.
12    (Source: P.A. 89-397, eff. 8-20-95.)

13        (105 ILCS 5/14-7.02) (from Ch. 122, par. 14-7.02)
14        Sec. 14-7.02.  Children attending private schools, public
15    out-of-state schools, public school residential facilities or
16    private  special  education facilities.  The General Assembly
17    recognizes  that  non-public  schools  or  special  education
18    facilities provide an important service  in  the  educational
19    system in Illinois.
20        If because of his or her disability the special education
21    program  of a district is unable to meet the needs of a child
22    and  the  child  attends  a  non-public  school  or   special
23    education facility, a public out-of-state school or a special
24    education  facility owned and operated by a county government
25    unit that provides special educational services  required  by
26    the child and is in compliance with the appropriate rules and
27    regulations  of  the  State  Superintendent of Education, the
28    school district in which the child is a  resident  shall  pay
29    the  actual cost of tuition for special education and related
30    services provided during the regular school term  and  during
31    the  summer  school  term if the child's educational needs so
32    require,  excluding  room,  board  and  transportation  costs
33    charged the  child  by  that  non-public  school  or  special
 
                            -175-    LRB093 04198 SJM 04242 b
 1    education  facility,  public  out-of-state  school  or county
 2    special education facility, or $4,500 per year, whichever  is
 3    less,  and  shall  provide  him any necessary transportation.
 4    "Nonpublic  special  education  facility"  shall  include   a
 5    residential   facility,   within  or  without  the  State  of
 6    Illinois,  which  provides  special  education  and   related
 7    services  to meet the needs of the child by utilizing private
 8    schools or public schools, whether located on the site or off
 9    the site of the residential facility.
10        The State Board of Education shall promulgate  rules  and
11    regulations  for  determining  when  placement  in  a private
12    special education facility is appropriate.   Such  rules  and
13    regulations  shall  take  into  account  the various types of
14    services needed by a  child  and  the  availability  of  such
15    services  to  the  particular  child in the public school. In
16    developing these rules and regulations  the  State  Board  of
17    Education   shall   consult  with  the  Advisory  Council  on
18    Education of  Children  with  Disabilities  and  hold  public
19    hearings  to  secure  recommendations  from  parents,  school
20    personnel, and others concerned about this matter.
21        The  State Board of Education shall also promulgate rules
22    and regulations for transportation to and from a  residential
23    school.  Transportation  to  and  from  home to a residential
24    school more than once each school term shall  be  subject  to
25    prior approval by the State Superintendent in accordance with
26    the rules and regulations of the State Board.
27        A  school  district  making  tuition payments pursuant to
28    this Section is eligible for reimbursement from the State for
29    the amount of such payments actually made in  excess  of  the
30    district per capita tuition charge for students not receiving
31    special  education  services  and  for  the cost of providing
32    transportation.  Such  reimbursement  shall  be  approved  in
33    accordance with Section 14-12.01 and each district shall file
34    its claims, computed in accordance with rules  prescribed  by
 
                            -176-    LRB093 04198 SJM 04242 b
 1    the  State  Board  of  Education,  on forms prescribed by the
 2    State Superintendent of Education.  Data used as a  basis  of
 3    reimbursement  claims  shall  be  for  the  preceding regular
 4    school term and summer school  term.   Each  school  district
 5    shall  transmit its claims to the State Board of Education on
 6    or before August 15.  The State Board  of  Education,  before
 7    approving any such claims, shall determine their accuracy and
 8    whether  they are based upon services and facilities provided
 9    under approved programs.  Upon approval the State Board shall
10    cause vouchers to be prepared  showing  the  amount  due  for
11    payment  of  reimbursement  claims  to  school districts, for
12    transmittal to the State  Comptroller  on  the  30th  day  of
13    September,  December,  and March, respectively, and the final
14    voucher, no later than June 20. If the money appropriated  by
15    the  General  Assembly  for  such  purpose  for  any  year is
16    insufficient, it shall be apportioned on  the  basis  of  the
17    claims approved.
18        No  child  shall be placed in a special education program
19    pursuant to this Section if  the  tuition  cost  for  special
20    education and related services increases more than 10 percent
21    over the tuition cost for the previous school year or exceeds
22    $4,500  per  year unless such costs have been approved by the
23    Illinois  Purchased  Care   Review   Board.    The   Illinois
24    Purchased  Care  Review  Board shall consist of the following
25    persons, or their designees:  the Directors of  Children  and
26    Family Services, Public Health, Public Aid, and the Bureau of
27    the  Budget;  the  Secretary  of  Human  Services;  the State
28    Superintendent of Education; and such other  persons  as  the
29    Governor  may   designate.   The Review Board shall establish
30    rules and regulations  for  its  determination  of  allowable
31    costs and payments made by local school districts for special
32    education,   room  and  board,  and  other  related  services
33    provided  by  non-public   schools   or   special   education
34    facilities and shall establish uniform standards and criteria
 
                            -177-    LRB093 04198 SJM 04242 b
 1    which it shall follow.
 2        The  Review Board shall establish uniform definitions and
 3    criteria for accounting separately by special education, room
 4    and board and other related services costs.  The Board  shall
 5    also  establish  guidelines  for the coordination of services
 6    and financial assistance provided by all  State  agencies  to
 7    assure  that  no otherwise qualified disabled child receiving
 8    services  under   Article   14   shall   be   excluded   from
 9    participation  in,  be denied the benefits of or be subjected
10    to discrimination under any program or activity  provided  by
11    any State agency.
12        The  Review  Board  shall  review  the  costs for special
13    education and related services provided by non-public schools
14    or  special  education  facilities  and  shall   approve   or
15    disapprove  such  facilities in accordance with the rules and
16    regulations established  by  it  with  respect  to  allowable
17    costs.
18        The State Board of Education shall provide administrative
19    and  staff  support for the Review Board as deemed reasonable
20    by the State Superintendent of Education.  This support shall
21    not include travel expenses or  other  compensation  for  any
22    Review  Board  member  other than the State Superintendent of
23    Education.
24        The Review Board shall seek the advice  of  the  Advisory
25    Council  on  Education  of  Children with Disabilities on the
26    rules and regulations to be promulgated  by  it  relative  to
27    providing special education services.
28        If  a  child  has  been  placed in a program in which the
29    actual per pupil costs of tuition for special  education  and
30    related services based on program enrollment, excluding room,
31    board  and transportation costs, exceed $4,500 and such costs
32    have been approved by the Review Board,  the  district  shall
33    pay  such total costs which exceed $4,500.  A district making
34    such tuition payments in excess of $4,500  pursuant  to  this
 
                            -178-    LRB093 04198 SJM 04242 b
 1    Section  shall  be  responsible  for  an  amount in excess of
 2    $4,500 equal to the district per capita  tuition  charge  and
 3    shall  be  eligible  for reimbursement from the State for the
 4    amount of such  payments  actually  made  in  excess  of  the
 5    district's  districts  per capita tuition charge for students
 6    not receiving special education  services  and  the  cost  of
 7    providing transportation.
 8        If  a  child  has  been  placed in an approved individual
 9    program and the tuition costs including room and board  costs
10    have  been  approved  by the Review Board, then such room and
11    board costs shall be paid by  the  appropriate  State  agency
12    subject  to  the  provisions  of Section 14-8.01 of this Act.
13    Room and board costs not provided by  a  State  agency  other
14    than  the  State  Board of Education shall be provided by the
15    State Board of Education on a current basis.   In  no  event,
16    however,  shall  the  State's  liability for funding of these
17    tuition costs begin until  after  the  legal  obligations  of
18    third  party payors have been subtracted from such costs.  If
19    the money appropriated  by  the  General  Assembly  for  such
20    purpose for any year is insufficient, it shall be apportioned
21    on  the  basis  of  the claims approved.  Each district shall
22    submit  estimated  claims  to  the  State  Superintendent  of
23    Education.   Upon  approval  of  such   claims,   the   State
24    Superintendent   of   Education   shall   direct   the  State
25    Comptroller  to  make  payments  on  a  monthly  basis.   The
26    frequency  for  submitting estimated claims and the method of
27    determining  payment  shall  be  prescribed  in   rules   and
28    regulations  adopted  by the State Board of Education.   Such
29    current state reimbursement shall be  reduced  by  an  amount
30    equal  to the proceeds which the child or child's parents are
31    eligible to receive under any public or private insurance  or
32    assistance   program.   Nothing  in  this  Section  shall  be
33    construed as relieving an insurer or similar third party from
34    an otherwise valid  obligation  to  provide  or  to  pay  for
 
                            -179-    LRB093 04198 SJM 04242 b
 1    services provided to a disabled child.
 2        If  it otherwise qualifies, a school district is eligible
 3    for the transportation reimbursement under  Section  14-13.01
 4    and  for  the  reimbursement  of  tuition payments under this
 5    Section whether the non-public school  or  special  education
 6    facility,   public  out-of-state  school  or  county  special
 7    education facility, attended by a child who resides  in  that
 8    district and requires special educational services, is within
 9    or  outside of the State of Illinois.  However, a district is
10    not eligible to claim transportation reimbursement under this
11    Section  unless  the  district   certifies   to   the   State
12    Superintendent  of  Education  that the district is unable to
13    provide special educational services required  by  the  child
14    for the current school year.
15        Nothing in this Section authorizes the reimbursement of a
16    school  district  for  the amount paid for tuition of a child
17    attending a non-public school or special education  facility,
18    public   out-of-state  school  or  county  special  education
19    facility unless the school district certifies  to  the  State
20    Superintendent   of  Education  that  the  special  education
21    program of that district is unable to meet the needs of  that
22    child  because of his disability and the State Superintendent
23    of Education finds that the school district is in substantial
24    compliance with Section 14-4.01.
25        Any educational or related services provided, pursuant to
26    this Section in a  non-public  school  or  special  education
27    facility  or  a special education facility owned and operated
28    by a county government unit shall be at no cost to the parent
29    or guardian of the child. However, current law and  practices
30    relative  to  contributions by parents or guardians for costs
31    other than educational or related services are  not  affected
32    by this amendatory Act of 1978.
33        Reimbursement   for   children  attending  public  school
34    residential facilities shall be made in accordance  with  the
 
                            -180-    LRB093 04198 SJM 04242 b
 1    provisions of this Section.
 2        Notwithstanding  any  other  provision of law, any school
 3    district receiving a payment  under  this  Section  or  under
 4    Section 14-7.02a, 14-13.01, or 29-5 of this Code may classify
 5    all  or  a  portion  of  the  funds  that  it  receives  in a
 6    particular fiscal year or from general State aid pursuant  to
 7    Section  18-8.05 of this Code as funds received in connection
 8    with any funding program for which it is entitled to  receive
 9    funds  from the State in that fiscal year (including, without
10    limitation, any funding program referenced in this  Section),
11    regardless  of  the  source  or  timing  of the receipt.  The
12    district may not classify more funds  as  funds  received  in
13    connection  with  the  funding  program  than the district is
14    entitled to receive in that fiscal  year  for  that  program.
15    Any classification by a district must be made by a resolution
16    of  its board of education.  The resolution must identify the
17    amount of any payments or general State aid to be  classified
18    under  this paragraph and must specify the funding program to
19    which the funds are to be treated as received  in  connection
20    therewith.    This   resolution  is  controlling  as  to  the
21    classification of funds referenced therein.  A certified copy
22    of the resolution must be sent to the State Superintendent of
23    Education. The resolution shall still take effect even though
24    a copy of the resolution has  not  been  sent  to  the  State
25    Superintendent   of   Education  in  a  timely  manner.    No
26    classification under  this  paragraph  by  a  district  shall
27    affect  the  total  amount or timing of money the district is
28    entitled to receive under this Code. No classification  under
29    this  paragraph  by  a  district shall in any way relieve the
30    district from or affect any requirements that otherwise would
31    apply with respect to that  funding  program,  including  any
32    accounting  of  funds  by  source,  reporting expenditures by
33    original  source  and  purpose,  reporting  requirements,  or
34    requirements of providing services.
 
                            -181-    LRB093 04198 SJM 04242 b
 1    (Source: P.A. 91-764, eff. 6-9-00; 92-568, eff. 6-26-02.)

 2        (105 ILCS 5/14-13.01) (from Ch. 122, par. 14-13.01)
 3        Sec. 14-13.01.  Reimbursement payable by State;  Amounts.
 4    Reimbursement  for  furnishing special educational facilities
 5    in a recognized school to the type  of  children  defined  in
 6    Section  14-1.02  shall  be  paid  to the school districts in
 7    accordance with Section 14-12.01 for each school year  ending
 8    June  30  by  the  State  Comptroller out of any money in the
 9    treasury appropriated for such purposes on  the  presentation
10    of vouchers by the State Board of Education.
11        The  reimbursement shall be limited to funds expended for
12    construction and maintenance of special education  facilities
13    designed   and  utilized  to  house  instructional  programs,
14    diagnostic services, other  special  education  services  for
15    children  with  disabilities and reimbursement as provided in
16    Section  14-13.01.   There  shall  be  no  reimbursement  for
17    construction and maintenance of any  administrative  facility
18    separated  from  special  education  facilities  designed and
19    utilized to house instructional programs, diagnostic services
20    and  other  special  education  services  for  children  with
21    disabilities.
22        (a)  For  children  who  have  not  been  identified   as
23    eligible for special education and for eligible children with
24    physical  disabilities, including all eligible children whose
25    placement  has  been  determined  under  Section  14-8.02  in
26    hospital or home instruction, 1/2 of the teacher's salary but
27    not more than $1,000 annually per child or $8,000 per teacher
28    for the 1985-1986 school year and  thereafter,  whichever  is
29    less.   Children  to  be  included in any reimbursement under
30    this paragraph must regularly receive a minimum of  one  hour
31    of  instruction  each  school  day,  or  in lieu thereof of a
32    minimum of 5 hours of instruction  in  each  school  week  in
33    order  to  qualify for full reimbursement under this Section.
 
                            -182-    LRB093 04198 SJM 04242 b
 1    If the attending physician for such  a  child  has  certified
 2    that  the  child  should  not  receive  as many as 5 hours of
 3    instruction in a school week,  however,  reimbursement  under
 4    this  paragraph  on  account  of that child shall be computed
 5    proportionate to the actual hours of instruction per week for
 6    that child divided by 5.
 7        (b)  (Blank). For children described in Section  14-1.02,
 8    4/5  of  the cost of transportation for each such child, whom
 9    the State Superintendent of Education determined  in  advance
10    requires  special  transportation  service  in  order to take
11    advantage of special educational  facilities.  Transportation
12    costs  shall be determined in the same fashion as provided in
13    Section 29-5.  For purposes of this subsection (b), the dates
14    for processing claims specified in Section 29-5 shall apply.
15        (c)  For  each  professional   worker   excluding   those
16    included  in  subparagraphs  (a),  (d),  (e), and (f) of this
17    Section, the annual sum of $8,000 for  the  1985-1986  school
18    year and thereafter.
19        (d)  For  one full time qualified director of the special
20    education program of each school district which  maintains  a
21    fully approved program of special education the annual sum of
22    $8,000   for   the  1985-1986  school  year  and  thereafter.
23    Districts  participating  in  a   joint   agreement   special
24    education  program  shall  not  receive such reimbursement if
25    reimbursement is made for a director of the  joint  agreement
26    program.
27        (e)  For  each  school psychologist as defined in Section
28    14-1.09 the annual sum of $8,000  for  the  1985-1986  school
29    year and thereafter.
30        (f)  For  each  qualified  teacher  working  in  a  fully
31    approved  program  for children of preschool age who are deaf
32    or hard-of-hearing the annual sum of $8,000 for the 1985-1986
33    school year and thereafter.
34        (g)  For readers, working with blind or partially  seeing
 
                            -183-    LRB093 04198 SJM 04242 b
 1    children  1/2 of their salary but not more than $400 annually
 2    per child.  Readers may be employed to assist  such  children
 3    and  shall  not  be  required  to  be  certified but prior to
 4    employment shall meet standards set up by the State Board  of
 5    Education.
 6        (h)  For necessary non-certified employees working in any
 7    class or program for children defined in this Article, 1/2 of
 8    the salary paid or $2,800 annually per employee, whichever is
 9    less.
10        The  State  Board  of  Education  shall set standards and
11    prescribe   rules   for   determining   the   allocation   of
12    reimbursement under this section on less  than  a  full  time
13    basis and for less than a school year.
14        When any school district eligible for reimbursement under
15    this  Section  operates  a  school or program approved by the
16    State Superintendent of Education for a  number  of  days  in
17    excess  of  the adopted school calendar but not to exceed 235
18    school days, such reimbursement shall be increased  by  1/185
19    of the amount or rate paid hereunder for each day such school
20    is operated in excess of 185 days per calendar year.
21        Notwithstanding  any  other  provision of law, any school
22    district receiving a payment  under  this  Section  or  under
23    Section  14-7.02, 14-7.02a, or 29-5 of this Code may classify
24    all or  a  portion  of  the  funds  that  it  receives  in  a
25    particular  fiscal year or from general State aid pursuant to
26    Section 18-8.05 of this Code as funds received in  connection
27    with  any funding program for which it is entitled to receive
28    funds from the State in that fiscal year (including,  without
29    limitation,  any funding program referenced in this Section),
30    regardless of the source  or  timing  of  the  receipt.   The
31    district  may  not  classify  more funds as funds received in
32    connection with the funding  program  than  the  district  is
33    entitled  to  receive  in  that fiscal year for that program.
34    Any classification by a district must be made by a resolution
 
                            -184-    LRB093 04198 SJM 04242 b
 1    of its board of education.  The resolution must identify  the
 2    amount  of any payments or general State aid to be classified
 3    under this paragraph and must specify the funding program  to
 4    which  the  funds are to be treated as received in connection
 5    therewith.   This  resolution  is  controlling  as   to   the
 6    classification of funds referenced therein.  A certified copy
 7    of the resolution must be sent to the State Superintendent of
 8    Education. The resolution shall still take effect even though
 9    a  copy  of  the  resolution  has  not been sent to the State
10    Superintendent  of  Education  in  a  timely  manner.      No
11    classification  under  this  paragraph  by  a  district shall
12    affect the total amount or timing of money  the  district  is
13    entitled to receive under this Code.  No classification under
14    this  paragraph  by  a  district shall in any way relieve the
15    district from or affect any requirements that otherwise would
16    apply with respect to that  funding  program,  including  any
17    accounting  of  funds  by  source,  reporting expenditures by
18    original  source  and  purpose,  reporting  requirements,  or
19    requirements of providing services.
20    (Source: P.A. 92-568, eff. 6-26-02.)

21        (105 ILCS 5/29-5) (from Ch. 122, par. 29-5)
22        Sec. 29-5.  Reimbursement by State for transportation.
23        (a)  Any school district, other than  a  school  district
24    organized  under  Article 34, maintaining a school, providing
25    transportation for students  enrolled  in  special  education
26    programs,   transporting  non-public  school  students  under
27    Section 29-4, transporting resident pupils to another  school
28    district's   vocational  program,  offered  through  a  joint
29    agreement approved  by  the  State  Board  of  Education,  as
30    provided  in  Section  10-22.22, or transporting its resident
31    pupils to a school which meets the standards for  recognition
32    as established by the State Board of Education which provides
33    transportation  meeting  the  standards  of  safety, comfort,
 
                            -185-    LRB093 04198 SJM 04242 b
 1    convenience, efficiency,  and  operation  prescribed  by  the
 2    State   Board   of   Education   for   resident   pupils   in
 3    pre-kindergarten  through  grade  12  or  in  adult education
 4    programs operated by or on  behalf  of  the  school  district
 5    kindergarten  or  any  of  grades  1  through 12 who (i): (a)
 6    reside at least 1 1/2 miles, as  measured  by  the  customary
 7    route  of  travel, from the school attended; or (b) reside in
 8    areas where conditions are such that  walking  constitutes  a
 9    hazard  to  the  safety  of  the  child when determined under
10    Section 29-3; and (ii) (c)  are  transported  to  the  school
11    attended  from  pick-up points at the beginning of the school
12    day and back again at the close of the  school  day,  are  or
13    transported  to  and  from  their assigned attendance centers
14    during the school day, or  are  transported  based  upon  the
15    contents   of   individualized   education   plans  shall  be
16    reimbursed by the  State  as  hereinafter  provided  in  this
17    Section. An entity other than a school district may not apply
18    for a transportation reimbursement.
19        The  State  will  pay  the  cost of transporting eligible
20    pupils less the assessed valuation in a dual school  district
21    maintaining  secondary  grades  9  to  12  inclusive  times a
22    qualifying rate  of  .05%;  in  elementary  school  districts
23    maintaining grades K to 8 times a qualifying rate of .06%; in
24    unit  districts maintaining grades K to 12 times a qualifying
25    rate of .07%. To be  eligible  to  receive  reimbursement  in
26    excess  of  4/5  of  the cost to transport eligible pupils, a
27    school district shall have a Transportation Fund tax rate  of
28    at  least  .12%.   If  a school district does not have a .12%
29    Transportation Fund tax rate, the  amount  of  its  claim  in
30    excess  of  4/5  of  the cost of transporting pupils shall be
31    reduced  by  the  sum   arrived   at   by   subtracting   the
32    Transportation  Fund  tax rate from .12% and multiplying that
33    amount by the  districts  equalized  or  assessed  valuation,
34    provided,  that  in  no  case  shall said reduction result in
 
                            -186-    LRB093 04198 SJM 04242 b
 1    reimbursement of less than  4/5  of  the  cost  to  transport
 2    eligible pupils.
 3        The  minimum  amount  to be received by a district is $16
 4    times the number of eligible pupils transported.
 5        Any such district transporting resident pupils during the
 6    school day to an area vocational  school  or  another  school
 7    district's  vocational program more than 1 1/2 miles from the
 8    school  attended,  as  provided  in  Sections  10-22.20a  and
 9    10-22.22, shall be reimbursed by the State  for  4/5  of  the
10    cost of transporting eligible pupils.
11        School  day  means that period of time which the pupil is
12    required to be in attendance for instructional purposes.
13        If a pupil is at a location within  the  school  district
14    other  than his residence for child care purposes at the time
15    for transportation to school, that location may be considered
16    for purposes of determining the 1 1/2 miles from  the  school
17    attended.
18        Claims for reimbursement that include children who attend
19    any  school  other than a public school shall show the number
20    of such children transported.
21        Claims for reimbursement under this Section shall not  be
22    paid for the transportation of pupils for whom transportation
23    costs  are  claimed  for payment under other Sections of this
24    Act.
25        The allowable direct  cost  of  transporting  pupils  for
26    regular,    vocational,    and    special   education   pupil
27    transportation shall be limited to the sum  of  the  cost  of
28    physical examinations required for employment as a school bus
29    driver;  the salaries of full or part-time drivers and school
30    bus  maintenance  personnel;  employee   benefits   excluding
31    Illinois   municipal  retirement  payments,  social  security
32    payments,  unemployment  insurance  payments   and   workers'
33    compensation  insurance premiums; expenditures to independent
34    carriers who operate school buses; payments to  other  school
 
                            -187-    LRB093 04198 SJM 04242 b
 1    districts  for  pupil  transportation  services; pre-approved
 2    contractual expenditures for computerized bus scheduling; the
 3    cost of gasoline, oil, tires, and  other  supplies  necessary
 4    for  the  operation  of  school buses; the cost of converting
 5    buses' gasoline engines to more fuel efficient engines or  to
 6    engines  which  use  alternative  energy sources; the cost of
 7    travel to meetings and workshops conducted  by  the  regional
 8    superintendent  or  the  State  Superintendent  of  Education
 9    pursuant  to  the  standards  established by the Secretary of
10    State under Section 6-106 of the  Illinois  Vehicle  Code  to
11    improve the driving skills of school bus drivers; the cost of
12    maintenance  of  school  buses  including parts and materials
13    used;  expenditures  for  leasing  transportation   vehicles,
14    except  interest  and  service charges; the cost of insurance
15    and licenses for transportation  vehicles;  expenditures  for
16    the  rental  of transportation equipment; plus a depreciation
17    allowance of 20% for 5 years for school  buses  and  vehicles
18    approved  for  transporting  pupils  to and from school and a
19    depreciation  allowance  of  10%  for  10  years  for   other
20    transportation  equipment  so  used. In addition to the above
21    allowable  costs  school  districts  shall  also  claim   all
22    transportation  supervisory  salary costs, including Illinois
23    municipal retirement payments, and all transportation related
24    building and building maintenance costs without limitation.
25        Special education  allowable  costs  shall  also  include
26    expenditures for the salaries of attendants or aides for that
27    portion  of  the  time  they  assist special education pupils
28    while in transit and  expenditures  for  parents  and  public
29    carriers  for  transporting  special  education  pupils  when
30    pre-approved by the State Superintendent of Education.
31        Indirect  costs  shall  be  included in the reimbursement
32    claim for districts which own and operate  their  own  school
33    buses.   Such  indirect  costs  shall  include administrative
34    costs, or any costs attributable to transporting pupils  from
 
                            -188-    LRB093 04198 SJM 04242 b
 1    their  attendance  centers  to  another  school  building for
 2    instructional purposes.  No school district  which  owns  and
 3    operates  its  own  school  buses may claim reimbursement for
 4    indirect costs which exceed 5% of the total allowable  direct
 5    costs for pupil transportation.
 6        (b)  The State Board of Education shall prescribe uniform
 7    regulations   for   determining   the   costs   of  providing
 8    transportation using school  district-based  cost  accounting
 9    principles, including all costs associated with the provision
10    of  transportation services and transportation costs incurred
11    by a district to accomplish transportation of  staff  between
12    attendance  centers  to provide required educational services
13    or to enhance curriculum  offerings  when  done  in  lieu  of
14    transporting students.
15        (c)  All  students  transported by the school district as
16    authorized in this Article may be claimed for  transportation
17    reimbursement  by  the  school district. Claims shall include
18    allowable costs provided in the State  Board  of  Education's
19    regulations   and  the  number  of  students  transported  as
20    follows:
21             (1)  special  education  students   transported   on
22        special  routes  in conformance with their individualized
23        education plans; and
24             (2)  all  students  transported   on   all   routes,
25        excluding  those  students  listed  in subdivision (1) of
26        this subsection (c).
27        (d)  The following formula shall  be  used  to  determine
28    State transportation reimbursement:
29             (1)  The  number  of  weighted pupils transported by
30        each school district shall be determined  by  multiplying
31        the  number  of special education students transported by
32        the district by the ratio of the statewide  average  cost
33        per  pupil  of providing special education transportation
34        to the statewide average cost per pupil of providing  all
 
                            -189-    LRB093 04198 SJM 04242 b
 1        transportation  and  by  adding this product to the total
 2        number of all other students transported by the district.
 3        The ratio of the statewide  average  cost  per  pupil  of
 4        providing   special   education   transportation  to  the
 5        statewide  average  cost  per  pupil  of  providing   all
 6        transportation shall be initially calculated using fiscal
 7        year  2003  data and formulas. The ratio shall be updated
 8        every 5 years  beginning  with  fiscal  year  2008  using
 9        current data and formulas from a stratified random sample
10        of districts.
11             (2)  The   district's   threshold  contribution  per
12        weighted  pupil  transported  shall  be   determined   by
13        multiplying a tax rate of 0.06% for districts maintaining
14        grades  1  through  8,  0.06%  for  districts maintaining
15        grades 9 through 12, and 0.10% for districts  maintaining
16        grades  K  through 12 by the equalized assessed valuation
17        of the real property of the district as determined  under
18        subsection  (G)  of  Section  18-8.05 of this Code and by
19        dividing this product by the number  of  weighted  pupils
20        transported by the district.
21             (3)  The  district's average cost per weighted pupil
22        transported shall be determined  by  dividing  the  total
23        cost  for  providing all transportation services reported
24        by  the  district  by  the  number  of  weighted   pupils
25        transported by the district.
26             (4)  The   State   shall   reimburse   100%  of  the
27        district's transportation costs  between  the  district's
28        threshold  contribution  per  weighted  pupil transported
29        established by subdivision (2) of this subsection (d) and
30        the lesser of (i) the statewide average  cost  per  pupil
31        transported  or  (ii)  the  district's  average  cost per
32        weighted pupil transported.
33             (5)  The State shall reimburse 50% of the district's
34        transportation costs between the district's average  cost
 
                            -190-    LRB093 04198 SJM 04242 b
 1        per  weighted pupil transported and 150% of the statewide
 2        average cost per pupil  transported  less  any  threshold
 3        revenue that exceeds the statewide average cost per pupil
 4        transported.
 5             (6)  The State shall reimburse 25% of the district's
 6        average costs per weighted pupil transported in excess of
 7        150%  of the statewide average cost per pupil transported
 8        less any threshold  revenue  that  exceeds  150%  of  the
 9        statewide average cost per pupil transported.
10             (7)  The district's total reimbursement shall be the
11        sum  of  the  amounts specified in subdivisions (4), (5),
12        and (6) of this subsection (d) multiplied by  the  number
13        of weighted pupils transported by the district.
14        If the appropriation for a fiscal year is insufficient to
15    reimburse  districts  at  100%  of  the  eligible  claims  as
16    calculated  in this Section, proration shall occur in reverse
17    order of subdivisions (4), (5), and (6)  of  this  subsection
18    (d)  in  a  manner  as  determined  by  the  State  Board  of
19    Education.
20        If a district's reimbursement for fiscal year 2004, 2005,
21    or 2006 is less than its reimbursement entitlement for fiscal
22    year  2003  under  the  provisions  of  this  Section as they
23    existed before the effective date of this amendatory  Act  of
24    the  93rd  General  Assembly,  the  district shall receive an
25    additional payment from funds appropriated for  this  purpose
26    so  that  its  reimbursement is not less than the amount paid
27    for fiscal year 2003. The amount of  the  additional  payment
28    shall  be the difference between the district's reimbursement
29    calculated under the  provisions  of  this  Section  and  the
30    amount that the district was paid for fiscal year 2003. above
31    standards  and  shall  prescribe forms of cost accounting and
32    standards  of  determining  reasonable   depreciation.   Such
33    depreciation shall include the cost of equipping school buses
34    with  the  safety  features  required by law or by the rules,
 
                            -191-    LRB093 04198 SJM 04242 b
 1    regulations and standards promulgated by the State  Board  of
 2    Education,  and  the  Department  of  Transportation  for the
 3    safety and construction of school  buses  provided,  however,
 4    any   equipment   cost   reimbursed   by  the  Department  of
 5    Transportation for equipping school buses  with  such  safety
 6    equipment  shall  be  deducted from the allowable cost in the
 7    computation of reimbursement under this Section in  the  same
 8    percentage as the cost of the equipment is depreciated.
 9        (e)  On  or  before July 10, annually, the board clerk or
10    the secretary of The district shall certify to  the  regional
11    superintendent  of schools upon forms prescribed by the State
12    Superintendent  of  Education  the   district's   claim   for
13    reimbursement  for  the  school  year  ended  on June 30 next
14    preceding.  The  regional  superintendent  of  schools  shall
15    check  all transportation claims to ascertain compliance with
16    the prescribed standards and upon his approval shall  certify
17    not  later  than  July  25  to  the  State  Superintendent of
18    Education the district's claim regional report of claims  for
19    reimbursement  reimbursements.   The  State Superintendent of
20    Education shall check and approve the claims and prepare  the
21    vouchers  showing  the amounts due for district reimbursement
22    claims.  Beginning with  the  1977  fiscal  year,  The  State
23    Superintendent  of  Education  shall prepare and transmit the
24    first 3 vouchers to the  Comptroller  on  the  30th  day   of
25    September,  December  and  March, respectively, and the final
26    voucher, no later than June 15.
27        If   the   amount   appropriated    for    transportation
28    reimbursement  is  insufficient  to fund total claims for any
29    fiscal year, the State Board of Education shall  reduce  each
30    school  district's  allowable  costs  and  flat  grant amount
31    proportionately to make total adjusted claims equal the total
32    amount appropriated.
33        For purposes  of  calculating  claims  for  reimbursement
34    under  this  Section  for  any  school year beginning July 1,
 
                            -192-    LRB093 04198 SJM 04242 b
 1    1998, or thereafter, the equalized assessed valuation  for  a
 2    school  district  used  to  compute  reimbursement  shall  be
 3    computed in the same manner as it is computed under paragraph
 4    (2) of subsection (G) of Section 18-8.05.
 5        All  reimbursements  received  from  the  State  shall be
 6    deposited into the district's transportation fund or into the
 7    fund from which the allowable expenditures were made.
 8        Notwithstanding any other provision of  law,  any  school
 9    district  receiving  a  payment  under  this Section or under
10    Section 14-7.02, 14-7.02a,  or  14-13.01  of  this  Code  may
11    classify  all or a portion of the funds that it receives in a
12    particular fiscal year or from general State aid pursuant  to
13    Section  18-8.05 of this Code as funds received in connection
14    with any funding program for which it is entitled to  receive
15    funds  from the State in that fiscal year (including, without
16    limitation, any funding program referenced in this  Section),
17    regardless  of  the  source  or  timing  of the receipt.  The
18    district may not classify more funds  as  funds  received  in
19    connection  with  the  funding  program  than the district is
20    entitled to receive in that fiscal  year  for  that  program.
21    Any classification by a district must be made by a resolution
22    of  its board of education.  The resolution must identify the
23    amount of any payments or general State aid to be  classified
24    under  this paragraph and must specify the funding program to
25    which the funds are to be treated as received  in  connection
26    therewith.    This   resolution  is  controlling  as  to  the
27    classification of funds referenced therein.  A certified copy
28    of the resolution must be sent to the State Superintendent of
29    Education. The resolution shall still take effect even though
30    a copy of the resolution has  not  been  sent  to  the  State
31    Superintendent   of   Education  in  a  timely  manner.    No
32    classification under  this  paragraph  by  a  district  shall
33    affect  the  total  amount or timing of money the district is
34    entitled to receive under  this  Code.     No  classification
 
                            -193-    LRB093 04198 SJM 04242 b
 1    under  this  paragraph by a district shall in any way relieve
 2    the district from or affect any requirements  that  otherwise
 3    would  apply  with respect to that funding program, including
 4    any accounting of funds by source, reporting expenditures  by
 5    original  source  and  purpose,  reporting  requirements,  or
 6    requirements of providing services.
 7        Any  school  district  with a population of not more than
 8    500,000 must deposit all funds received  under  this  Article
 9    into  the  transportation  fund  and  use those funds for the
10    provision of transportation services.
11    (Source: P.A. 91-96, eff. 7-9-99; 92-568, eff. 6-26-02.)

12        (105 ILCS 5/29-5a new)
13        Sec. 29-5a.  Transportation appropriation for a  district
14    organized under Article 34. Annually the State Superintendent
15    of    Education    shall   request   an   appropriation   for
16    transportation  expenses  incurred  by  a   school   district
17    organized  under  Article  34  of  this  Code.  Each year the
18    appropriation  request  shall  be  increased  in   the   same
19    proportion  as  appropriation  requests  are  increased under
20    Section 29-5 of this Code. The appropriation  shall  be  paid
21    directly  to  the  district  as  part  of a block grant under
22    Section 1D-1 of this Code.

23        (105 ILCS 5/2-3.51.5 rep.)
24        Section 20-10. The School Code is  amended  by  repealing
25    Section 2-3.51.5.

26                             ARTICLE 25

27        Section  25-5.  The  Illinois  Pension Code is amended by
28    changing Sections 7-171, 21-110, and 21-110.1 as follows:

29        (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
 
                            -194-    LRB093 04198 SJM 04242 b
 1        Sec. 7-171. Finance; taxes.
 2        (a)  Each municipality other than a school district shall
 3    appropriate an amount sufficient to provide for  the  current
 4    municipality  contributions required by Section 7-172 of this
 5    Article, for the fiscal year for which the  appropriation  is
 6    made  and  all  amounts  due  for municipal contributions for
 7    previous years. Those municipalities which have been assessed
 8    an annual amount to  amortize  its  unfunded  obligation,  as
 9    provided  in subparagraph 5 of paragraph (a) of Section 7-172
10    of this Article, shall include in the appropriation an amount
11    sufficient to pay the  amount  assessed.   The  appropriation
12    shall  be  based  upon  an  estimate  of assets available for
13    municipality contributions and liabilities therefor  for  the
14    fiscal   year  for  which  appropriations  are  to  be  made,
15    including funds available from levies  for  this  purpose  in
16    prior years.
17        (b)  For the purpose of providing monies for municipality
18    contributions, beginning for the year in which a municipality
19    is included in this fund:
20             (1)  A municipality other than a school district may
21        levy a tax which shall not exceed the amount appropriated
22        for municipality contributions.
23             (2)  A  school  district  may  levy  a tax (i) in an
24        amount reasonably calculated at the time of the  levy  to
25        provide for the municipality contributions required under
26        Section  7-172  of  this Article for the fiscal years for
27        which revenues from the levy will  be  received  and  all
28        amounts  due  for  municipal  contributions  for previous
29        years, (ii) in an amount necessary to meet  the  cost  of
30        participation  in  the  Federal Social Security Insurance
31        Program, and (iii) in an amount  necessary  to  meet  the
32        cost  of  participation  in the Federal Medicare Program,
33        including any share of the cost of  participation  of  an
34        instrumentality or entity described in subdivision (b) or
 
                            -195-    LRB093 04198 SJM 04242 b
 1        (c)  of Section 21-102.8 for which the school district is
 2        responsible, without regard to whether that participation
 3        is mandatory or optional and without  regard  to  whether
 4        the   school   district  has  otherwise  come  under  the
 5        provisions of Article 21 for purposes of participation in
 6        the Federal Social Security Insurance Program.  Any  levy
 7        adopted  before the effective date of this amendatory Act
 8        of 1995 by a school district shall  be  considered  valid
 9        and   authorized  to  the  extent  that  the  amount  was
10        reasonably calculated at the time of the levy to  provide
11        for the municipality contributions required under Section
12        7-172  for  the  fiscal years for which revenues from the
13        levy will be received and all amounts due  for  municipal
14        contributions  for  previous  years.  In no event shall a
15        budget adopted by a school district limit a levy of  that
16        school district adopted under this Section.
17        (c)  Any  county  which is served by a regional office of
18    education that serves 2 or more counties may include  in  its
19    appropriation   an   amount   sufficient   to   provide   its
20    proportionate  share  of  the  municipality contributions for
21    that regional office of education.  The tax  levy  authorized
22    by  this  Section  may include an amount necessary to provide
23    monies for this contribution.
24        (d)  Any county that  is  a  part  of  a  multiple-county
25    health  department or consolidated health department which is
26    formed under "An Act in relation  to  the  establishment  and
27    maintenance  of  county  and  multiple-county  public  health
28    departments", approved July 9, 1943, as amended, and which is
29    a  participating  instrumentality may include in the county's
30    appropriation   an   amount   sufficient   to   provide   its
31    proportionate share  of  municipality  contributions  of  the
32    department.   The  tax  levy  authorized  by this Section may
33    include the amount  necessary  to  provide  monies  for  this
34    contribution.
 
                            -196-    LRB093 04198 SJM 04242 b
 1        (d-5)  A  school  district  participating  in  a  special
 2    education  joint  agreement created under Section 10-22.31 of
 3    the School Code that is a participating  instrumentality  may
 4    include  in the school district's tax levy under this Section
 5    an amount sufficient to provide its  proportionate  share  of
 6    the  municipality contributions for current and prior service
 7    by employees of  the  participating  instrumentality  created
 8    under the joint agreement.
 9        (e)  Such  tax  shall  be  levied  and  collected in like
10    manner, with the general taxes of the municipality and  shall
11    be  in  addition to all other taxes which the municipality is
12    now or may hereafter be authorized to levy upon  all  taxable
13    property  therein,  and shall be exclusive of and in addition
14    to the amount  of  tax  levied  for  general  purposes  under
15    Section  8-3-1 of the "Illinois Municipal Code", approved May
16    29, 1961, as amended, or under any other law  or  laws  which
17    may  limit  the amount of tax which the municipality may levy
18    for general purposes.  The tax may be levied by the governing
19    body of the municipality without being  authorized  as  being
20    additional  to all other taxes by a vote of the people of the
21    municipality.
22        (f)  The county clerk of the county  in  which  any  such
23    municipality  is  located,  in  reducing tax levies shall not
24    consider any such tax as a part of the general tax  levy  for
25    municipality  purposes, and shall not include the same in the
26    limitation of any other tax rate which may be extended.
27        (g)  The amount of the tax  to  be  levied  in  any  year
28    shall,  within the limits herein prescribed, be determined by
29    the governing body of the respective municipality.
30        (h)  The revenue derived from any such tax levy shall  be
31    used  only for the purposes specified in this Article and, as
32    collected, shall be paid to the treasurer of the municipality
33    levying the tax.  Monies received by a county  treasurer  for
34    use in making contributions to a regional office of education
 
                            -197-    LRB093 04198 SJM 04242 b
 1    for  its  municipality contributions shall be held by him for
 2    that purpose and paid to the regional office of education  in
 3    the  same manner as other monies appropriated for the expense
 4    of the regional office.
 5        (i)  The payment of Medicare taxes to  the  State  agency
 6    shall  be  made  in  the  same  manner  and  under  the  same
 7    conditions  as are set forth in Section 21-109 for payment of
 8    Social Security contributions, except that the  State  agency
 9    may designate a retirement system to assume responsibility to
10    the  State  agency  for  the  compiling  of  wage  data,  the
11    collection  of  Medicare  taxes, and the timely reporting and
12    payment of these items for specified persons under  mandatory
13    or  optional  Medicare  coverage,  regardless  of whether the
14    retirement system has entered into a coverage  agreement  for
15    Social Security coverage pursuant to Section 21-105.
16        (j)  The penalty and audit provisions of Sections 21-112,
17    21-113,  and  21-114 shall apply to the failure or refusal to
18    make timely and correct payments of Medicare taxes or reports
19    of wages in accordance with State agency rules.
20    (Source: P.A. 89-329, eff.  8-17-95;  90-448,  eff.  8-16-97;
21    90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)

22        (40 ILCS 5/21-110) (from Ch. 108 1/2, par. 21-110)
23        Sec.  21-110.   Tax  levy.   The  governing  body  of any
24    political subdivision with the power to levy taxes (except  a
25    school district having a population of fewer than 500,000) is
26    hereby  authorized  and  empowered to increase its annual tax
27    levy  above  the  limitation  now  or   hereafter   otherwise
28    authorized  by  law, by the amount necessary to meet the cost
29    of participation in the  Federal  Social  Security  Insurance
30    Program,  including any share of the cost of participation of
31    an instrumentality or entity described in subsection  (b)  or
32    (c)  of  Section 21-102.8 for which the political subdivision
33    is responsible, without regard to whether such  participation
 
                            -198-    LRB093 04198 SJM 04242 b
 1    is  mandatory  or optional, and without regard to whether the
 2    political subdivision has otherwise come under the provisions
 3    of this Article for purposes of participation in the  Federal
 4    Social Security Insurance Program.
 5    (Source: P.A. 87-11.)

 6        (40 ILCS 5/21-110.1) (from Ch. 108 1/2, par. 21-110.1)
 7        Sec. 21-110.1.  Medicare taxes.
 8        (a)  The  governing  body  of every political subdivision
 9    with the power to levy taxes (except a school district having
10    a population of fewer than 500,000) is hereby authorized  and
11    empowered   to   increase  its  annual  tax  levy  above  the
12    limitation now or hereafter otherwise authorized by  law,  by
13    the amount necessary to meet the cost of its participation in
14    the Federal Medicare Program, including any share of the cost
15    of participation of an instrumentality or entity described in
16    subsection  (b)  or  (c)  of  Section  21-102.8 for which the
17    political  subdivision  is  responsible,  without  regard  to
18    whether such participation  is  mandatory  or  optional,  and
19    without  regard to whether the political subdivision has come
20    under  the  provisions  of  this  Article  for  purposes   of
21    participation   in  the  Federal  Social  Security  Insurance
22    Program.
23        (b)  The payment of medicare taxes to  the  State  Agency
24    shall  be  made  in  the  same  manner  and  under  the  same
25    conditions  as are set forth in Section 21-109 for payment of
26    Social Security contributions, except that the  State  Agency
27    may designate a retirement system to assume responsibility to
28    the  State  Agency  for  the  compiling  of  wage  data,  the
29    collection  of  medicare  taxes, and the timely reporting and
30    payment of such items for specified persons  under  mandatory
31    or  optional  medicare  coverage,  regardless of whether such
32    retirement system has entered into a coverage  agreement  for
33    Social Security coverage pursuant to Section 21-105.
 
                            -199-    LRB093 04198 SJM 04242 b
 1        (c)  The penalty and audit provisions of Sections 21-112,
 2    21-113  and  21-114  shall apply to the failure or refusal to
 3    make timely and correct payments of medicare taxes or reports
 4    of wages in accordance with State Agency regulations.
 5    (Source: P.A. 84-1472.)

 6        Section 25-10. The School Code  is  amended  by  changing
 7    Sections  2-3.77,  10-22.31, 10-22.44, 11A-15, 17-2, 17-2.2c,
 8    17-2.11, 17-2C,  17-3,  17-3.2,  17-3.4,  17-7,  17-8,  17-9,
 9    17-11,  17-12,  17-16,  19-30, 19-31, 20-1, 20-2, 20-3, 20-4,
10    20-5, 20-6, 20-7, 35-5, 35-7,  and  35-25,  by  changing  the
11    heading  of  Article  20,  and  by  adding  Sections 17-1.10,
12    17-1.15, and 20-10 as follows:

13        (105 ILCS 5/2-3.77) (from Ch. 122, par. 2-3.77)
14        Sec. 2-3.77.  Temporary relocation expenses.
15        (a)  The State Board of Education may distribute loan  or
16    grant  moneys  appropriated for temporary relocation expenses
17    incurred  by  school  districts  as  a   result   of   fires,
18    earthquakes, tornados, or other natural or man-made disasters
19    which  destroy  school  buildings,  or  as  a  result  of the
20    condemnation of a school building under Section 3-14.22.  The
21    State Board  of  Education  shall  by  rule  prescribe  those
22    expenses  which  qualify as temporary relocation expenses and
23    the manner of determining and reporting  the  same,  provided
24    that  such  expenses  shall  be  deemed  to  include  amounts
25    reasonably required to be expended for the lease, rental, and
26    renovation  of  educational  facilities  and  for  additional
27    transportation  and  other  expenses directly associated with
28    the  temporary  relocation  and   housing   of   the   normal
29    operations, activities, and affairs of a school district.
30        (b)  Except  as  provided  in  subsection  (c), no moneys
31    appropriated to the State Board of Education for purposes  of
32    distribution  in  accordance  with  the  provisions  of  this
 
                            -200-    LRB093 04198 SJM 04242 b
 1    Section  shall  be  distributed to any school district unless
 2    the school board of such district, as an express condition of
 3    any such distribution, agrees to levy the tax provided for by
 4    Section 17-2.2c at the maximum rate permitted thereunder  and
 5    to  pay to the State of Illinois for deposit in the Temporary
 6    Relocation Expenses Revolving Grant Fund (i) all proceeds  of
 7    such  tax attributable to the first year and succeeding years
 8    for which the tax is levied  after  moneys  appropriated  for
 9    purposes  of this Section have been distributed to the school
10    district,  and  (ii)  all  insurance  proceeds  which  become
11    payable  to  the  district  under  those  provisions  of  any
12    contract or policy of insurance which  provide  reimbursement
13    for  or  other  coverage  against  loss  with  respect to any
14    temporary  relocation  expenses  of  the   school   district;
15    provided,  that  the  aggregate  of  any  tax  and  insurance
16    proceeds paid by the school district to the State pursuant to
17    this   Section   shall   not  exceed  in  amount  the  moneys
18    distributed to the school district pursuant to this Section.
19        (c)  The   State   Board   of   Education    may,    from
20    appropriations  made  for  this  purpose  from  the Temporary
21    Relocation Expenses Revolving Grant Fund, make grants that do
22    not require repayment to school districts  that  qualify  for
23    temporary  relocation  assistance  under  this Section to the
24    extent that  the  amount  of  temporary  relocation  expenses
25    incurred  by  a district exceeds the amount that the district
26    is able to repay to the State through insurance proceeds  and
27    the tax levy authorized in Section 17-2.2c.
28        (d)  The  Temporary  Relocation  Expenses Revolving Grant
29    Fund is hereby established as a special fund within the State
30    treasury.  Appropriations and amounts that  school  districts
31    repay to the State under subsection (b) of this Section shall
32    be  deposited  into  that  Fund.  If the balance in that Fund
33    exceeds $3,000,000, the excess shall be transferred into  the
34    General Revenue Fund.
 
                            -201-    LRB093 04198 SJM 04242 b
 1        (e)  The  State  Board of Education shall promulgate such
 2    rules and regulations, not inconsistent with  the  provisions
 3    of  this  Section,  as  are  necessary  to  provide  for  the
 4    distribution  of  loan and grant moneys and for the repayment
 5    of loan moneys distributed pursuant to this Section.
 6    (Source: P.A. 90-464, eff. 8-17-97.)

 7        (105 ILCS 5/10-22.31) (from Ch. 122, par. 10-22.31)
 8        Sec. 10-22.31.  Special education.
 9        (a)  To enter into joint  agreements  with  other  school
10    boards  to  provide the needed special educational facilities
11    and to employ a director and other  professional  workers  as
12    defined  in  Section  14-1.10  and to establish facilities as
13    defined  in  Section  14-1.08  for  the  types  of   children
14    described  in Sections 14-1.02 through 14-1.07.  The director
15    (who may be employed under a multi-year contract as  provided
16    in  subsection  (c)  of  this Section) and other professional
17    workers may be employed  by  one  district,  which  shall  be
18    reimbursed on a mutually agreed basis by other districts that
19    are  parties  to  the  joint  agreement.  Such agreements may
20    provide that one district may supply professional workers for
21    a  joint  program  conducted  in  another   district.    Such
22    agreement   shall   provide   that   any   full-time   school
23    psychologist who is employed by a joint agreement program and
24    spends  over  50%  of  his or her time in one school district
25    shall not be required to work a different  teaching  schedule
26    than  the  other school psychologists in that district.  Such
27    agreement shall include, but not be  limited  to,  provisions
28    for  administration,  staff,  programs,  financing,  housing,
29    transportation,  an  advisory  body,  and  the  withdrawal of
30    districts from the  joint  agreement.   Except  as  otherwise
31    provided  in  Section 10-22.31.1, the withdrawal of districts
32    from the joint agreement shall be by petition to the regional
33    board of school trustees.  Such agreement may be  amended  at
 
                            -202-    LRB093 04198 SJM 04242 b
 1    any  time as provided in the joint agreement or, if the joint
 2    agreement does not so provide, then  such  agreement  may  be
 3    amended   at   any  time  upon  the  adoption  of  concurring
 4    resolutions by the school boards of all member districts.   A
 5    fully  executed  copy  of  any  such  agreement  or amendment
 6    entered into on or after January 1, 1989 shall be filed  with
 7    the  State Board of Education.  Such petitions for withdrawal
 8    shall be made to the regional board of school trustees of all
 9    counties  having  jurisdiction  over  one  or  more  of   the
10    districts in the joint agreement.  Upon receipt of a petition
11    for withdrawal, the regional boards of school trustees having
12    jurisdiction  over  the  cooperating  districts shall publish
13    notice of and  conduct  a  joint  hearing  on  the  issue  as
14    provided in Section 7-6.  No such petition may be considered,
15    however,  unless in compliance with Section 7-8.  If approved
16    by a 2/3 vote of all trustees of those regional boards, at  a
17    joint  meeting,  the  withdrawal  takes effect as provided in
18    Section 7-9 of this Act.
19        (b)  To either (1) designate an  administrative  district
20    to  act  as fiscal and legal agent for the districts that are
21    parties to the joint agreement, or (2) designate a  governing
22    board  composed  of  one  member  of the school board of each
23    cooperating district and designated by such boards to act  in
24    accordance with the joint agreement.  No such governing board
25    may  levy  taxes  and  no  such governing board may incur any
26    indebtedness except within an annual  budget  for  the  joint
27    agreement  approved  by the governing board and by the boards
28    of at least a majority of the cooperating school districts or
29    a number of districts greater than a majority if required  by
30    the  joint  agreement.    The  governing board may appoint an
31    executive board of at least 7 members to administer the joint
32    agreement in accordance with its terms. However, if 7 or more
33    school districts are parties to a joint agreement  that  does
34    not have an administrative district:  (i) at least a majority
 
                            -203-    LRB093 04198 SJM 04242 b
 1    of  the  members  appointed  by  the  governing  board to the
 2    executive board shall be members of the school boards of  the
 3    cooperating  districts; or (ii) if the governing board wishes
 4    to appoint members who are not  school  board  members,  they
 5    shall be superintendents from the cooperating districts.
 6        (c)  To  employ  a  director of a joint agreement program
 7    under a multi-year contract.  No such contract can be offered
 8    or accepted for less than or more than 3 years, except for  a
 9    person  serving  as  a  director of a special education joint
10    agreement for the first time in Illinois.  In  such  a  case,
11    the  initial  contract  shall  be  for a 2 year period.  Such
12    contract may be discontinued at any time by mutual  agreement
13    of  the  contracting  parties,  or  may  be  extended  for an
14    additional 3 years at the end of any year.
15        The contract year is July 1 through  the  following  June
16    30th,  unless  the  contract specifically provides otherwise.
17    Notice of intent not to renew a  contract  when  given  by  a
18    controlling  board  or  administrative  district  must  be in
19    writing stating the  specific  reason  therefor.   Notice  of
20    intent  not  to  renew  the  contract  must  be  given by the
21    controlling  board or the administrative district at least 90
22    days before the contract expires.   Failure  to  do  so  will
23    automatically extend the contract for one additional year.
24        By  accepting  the  terms of the multi-year contract, the
25    director of a special education joint  agreement  waives  all
26    rights  granted  under  Sections  24-11 through 24-16 for the
27    duration of his or her employment as a director of a  special
28    education joint agreement.
29        (d)  To designate a district that is a party to the joint
30    agreement  as  the  issuer of bonds or notes for the purposes
31    and in the manner  provided  in  this  Section.   It  is  not
32    necessary  for  such  district  to also be the administrative
33    district for the joint agreement, nor is it necessary for the
34    same district to be designated as the issuer of all series of
 
                            -204-    LRB093 04198 SJM 04242 b
 1    bonds or notes issued hereunder.  Any district so  designated
 2    may,  from time to time, borrow money and, in evidence of its
 3    obligation to repay the borrowing, issue its negotiable bonds
 4    or  notes  for  the  purpose  of   acquiring,   constructing,
 5    altering,  repairing, enlarging and equipping any building or
 6    portion thereof, together with any land or interest  therein,
 7    necessary  to  provide  special  educational  facilities  and
 8    services  as defined in Section 14-1.08.  Title in and to any
 9    such facilities shall be held in accordance  with  the  joint
10    agreement.
11        Any  such  bonds  or  notes  shall  be  authorized  by  a
12    resolution of the board of education of the issuing district.
13    The  resolution  may  contain such covenants as may be deemed
14    necessary or advisable by the district to assure the  payment
15    of  the  bonds  or  notes.  The resolution shall be effective
16    immediately upon its adoption.
17        Prior to the issuance of such bonds or notes, each school
18    district that is a party to the joint agreement shall  agree,
19    whether  by amendment to the joint agreement or by resolution
20    of the board of education, to be jointly and severally liable
21    for the payment of the bonds and notes.  The bonds  or  notes
22    shall  be  payable  solely  and  only  from the payments made
23    pursuant to such agreement.
24        Neither the bonds or notes nor the obligation to pay  the
25    bonds  or notes under any joint agreement shall constitute an
26    indebtedness of any district, including the issuing district,
27    within  the  meaning  of  any  constitutional  or   statutory
28    limitation.
29        As long as any bonds or notes are outstanding and unpaid,
30    the  agreement by a district to pay the bonds and notes shall
31    be irrevocable notwithstanding the district's withdrawal from
32    membership in the joint special education program.
33        (e)  If a district whose employees  are  on  strike  was,
34    prior  to  the  strike, sending students with disabilities to
 
                            -205-    LRB093 04198 SJM 04242 b
 1    special  educational  facilities  and  services  in   another
 2    district  or cooperative, the district affected by the strike
 3    shall continue to send such students during  the  strike  and
 4    shall be eligible to receive appropriate State reimbursement.
 5        (f)  With  respect  to those joint agreements that have a
 6    governing board composed of one member of the school board of
 7    each cooperating district and designated by those  boards  to
 8    act  in  accordance  with  the joint agreement, the governing
 9    board shall have, in addition to its other powers under  this
10    Section,  the  authority  to  issue  bonds  or  notes for the
11    purposes and in the manner provided in this subsection.   The
12    governing  board of the joint agreement may from time to time
13    borrow money and, in evidence of its obligation to repay  the
14    borrowing,  issue  its  negotiable  bonds  or  notes  for the
15    purpose  of  acquiring,  constructing,  altering,  repairing,
16    enlarging and equipping  any  building  or  portion  thereof,
17    together  with  any  land  or  interest therein, necessary to
18    provide  special  educational  facilities  and  services   as
19    defined  in Section 14-1.08 and including also facilities for
20    activities  of   administration   and   educational   support
21    personnel  employees.   Title  in  and to any such facilities
22    shall be held in accordance with the joint agreement.
23        Any  such  bonds  or  notes  shall  be  authorized  by  a
24    resolution  of  the  governing  board.   The  resolution  may
25    contain  such  covenants  as  may  be  deemed  necessary   or
26    advisable by the governing board to assure the payment of the
27    bonds or notes and interest accruing thereon.  The resolution
28    shall be effective immediately upon its adoption.
29        Each  school  district  that  is  a  party  to  the joint
30    agreement shall be automatically liable,  by  virtue  of  its
31    membership  in  the  joint  agreement,  for its proportionate
32    share of the principal amount of the  bonds  and  notes  plus
33    interest  accruing  thereon,  as  provided in the resolution.
34    Subject  to  the  joint  and  several  liability  hereinafter
 
                            -206-    LRB093 04198 SJM 04242 b
 1    provided  for,  the  resolution  may  provide  for  different
 2    payment schedules for different  districts  except  that  the
 3    aggregate  amount  of  scheduled  payments  for each district
 4    shall be equal to its proportionate share of the debt service
 5    in the bonds or  notes  based  upon  the  fraction  that  its
 6    equalized  assessed  valuation  bears  to the total equalized
 7    assessed valuation of all the district members of  the  joint
 8    agreement as adjusted in the manner hereinafter provided.  In
 9    computing  that  fraction the most recent available equalized
10    assessed valuation at the time of the issuance of  the  bonds
11    and notes shall be used, and the equalized assessed valuation
12    of  any  district maintaining grades K to 12 shall be doubled
13    in both the numerator and denominator of  the  fraction  used
14    for  all  of  the  districts  that  are  members of the joint
15    agreement.  In case of default in payment by any member, each
16    school district that is a party to the joint agreement  shall
17    automatically  be jointly and severally liable for the amount
18    of any deficiency.  The bonds or notes and  interest  thereon
19    shall  be  payable  solely  and  only  from  the  funds  made
20    available  pursuant  to  the  procedures  set  forth  in this
21    subsection.  No project authorized under this subsection  may
22    require  an  annual  contribution  for bond payments from any
23    member district in excess of 0.15% of the  value  of  taxable
24    property  as  equalized  or  assessed  by  the  Department of
25    Revenue in the case of districts maintaining  grades  K-8  or
26    9-12  and 0.30% of the value of taxable property as equalized
27    or assessed by the Department  of  Revenue  in  the  case  of
28    districts maintaining grades K-12.  This limitation on taxing
29    authority   is   expressly  applicable  to  taxing  authority
30    provided under Section 17-9 and other applicable Sections  of
31    this  Act.   Nothing  contained  in  this subsection shall be
32    construed as an exception to  the  property  tax  limitations
33    contained  in  Section  17-2,  17-2.2a,  17-5,  or  any other
34    applicable Section of this Code Act.
 
                            -207-    LRB093 04198 SJM 04242 b
 1        Neither the bonds or notes nor the obligation to pay  the
 2    bonds  or notes under any joint agreement shall constitute an
 3    indebtedness of  any  district  within  the  meaning  of  any
 4    constitutional or statutory limitation.
 5        As long as any bonds or notes are outstanding and unpaid,
 6    the  obligation  of a district to pay its proportionate share
 7    of the principal of and interest on the bonds  and  notes  as
 8    required in this Section shall be a general obligation of the
 9    district   payable  from  any  and  all  sources  of  revenue
10    designated for that purpose by the board of education of  the
11    district   and   shall  be  irrevocable  notwithstanding  the
12    district's withdrawal from membership in  the  joint  special
13    education program.
14    (Source:  P.A.  89-397,  eff.  8-20-95;  89-613, eff. 8-9-96;
15    89-626, eff.  8-9-96;  90-103,  eff.  7-11-97;  90-515,  eff.
16    8-22-97; 90-637, eff. 7-24-98; 90-655, eff. 7-30-98.)

17        (105 ILCS 5/10-22.44) (from Ch. 122, par. 10-22.44)
18        Sec.  10-22.44.  To transfer the interest earned from any
19    moneys of the district in the respective fund of the district
20    that is most in need of such interest income,  as  determined
21    by  the  board.   This Section does not apply to any interest
22    earned which has been earmarked or restricted  by  the  board
23    for a designated purpose.  This Section does not apply to any
24    interest  earned  on  any  funds  for  purposes  of  Illinois
25    Municipal  Retirement  under  the Pension Code, Tort Immunity
26    under the Local Governmental and Governmental Employees  Tort
27    Immunity   Act,   and   Fire   Prevention,   Safety,   Energy
28    Conservation  and  School  Security  Purposes  under  Section
29    17-2.11,  and  Capital  Improvements  under  Section  17-2.3.
30    Interest  earned  on  these exempted funds shall be used only
31    for the purposes authorized for the respective exempted funds
32    from which the interest earnings were derived.
33    (Source: P.A. 87-984.)
 
                            -208-    LRB093 04198 SJM 04242 b
 1        (105 ILCS 5/11A-15) (from Ch. 122, par. 11A-15)
 2        Sec.  11A-15.   Joint  agreement   vocational   education
 3    program.   Whenever  a  community  unit  school  district  is
 4    established  under  the  provisions of this Act and more than
 5    50% of the territory of such community unit  school  district
 6    is territory which immediately prior to its inclusion in such
 7    community  unit school district was included in a high school
 8    district or districts which were signatories under  the  same
 9    joint  agreement  vocational educational project, pursuant to
10    the provisions of this Act,  then  any  such  community  unit
11    school  district shall upon its establishment be deemed to be
12    a member and signatory to any such joint agreement and  shall
13    also  have  the  right  to  continue  to  extend any previous
14    authority to levy a  tax  under  Section  17-2.4.   In  those
15    instances,  however,  where more than 50% of the territory of
16    any community unit school district was not immediately  prior
17    to  its  establishment  included  within the territory of any
18    such high school district which was a signatory to  the  same
19    joint agreement vocational educational program, then any such
20    community  unit  school district shall not be deemed upon its
21    establishment to be a signatory to any such  joint  agreement
22    nor  shall  such  community unit school district be deemed to
23    have the special tax levy rights under Section 17-2.4 of this
24    Act.  Nothing herein shall be deemed to forbid such community
25    unit school district from subsequently joining any such joint
26    agreement vocational education program and to thereafter levy
27    a tax under Section 17-2.4  of  this  Act  by  following  the
28    provisions  of such Section.  In the event any such community
29    unit school district should subsequently join any such  joint
30    agreement  vocational education program, it shall be entitled
31    to  a  fair  credit,  as  computed  by  the  State  Board  of
32    Education, for any capital contributions previously  made  to
33    such  joint agreement vocational education program from taxes
34    levied against the assessed valuation of property situated in
 
                            -209-    LRB093 04198 SJM 04242 b
 1    any part of the territory included within any such  community
 2    unit school district.
 3    (Source: P.A. 83-686.)

 4        (105 ILCS 5/17-1.10 new)
 5        Section  17-1.10.  References to educational purpose tax,
 6    operations and maintenance purposes  tax,  or  transportation
 7    purposes tax. For tax years 2002 and thereafter, if involving
 8    a  school  district  having a population of less than 500,000
 9    inhabitants, references to a  school  district's  educational
10    purposes  tax,  operations  and  maintenance purposes tax, or
11    transportation purposes tax under this Code or any other  law
12    of  this  State  shall  be deemed to refer to that district's
13    general educational purposes tax.

14        (105 ILCS 5/17-1.15 new)
15        Sec.  17-1.15.  References  to  educational   fund.    If
16    involving  a school district having a population of less than
17    500,000  inhabitants,  references  to  a  school   district's
18    educational  fund  under  this  Code or any other law of this
19    State shall be deemed to refer  to  that  district's  general
20    educational fund.

21        (105 ILCS 5/17-2) (from Ch. 122, par. 17-2)
22        Sec.   17-2.  Tax  levies;  purposes;  rates.  Except  as
23    otherwise provided in Articles 12 and 13  of  this  Act,  the
24    following maximum rates shall apply to all taxes levied after
25    the effective date of this amendatory Act of the 93rd General
26    Assembly August 10, 1965, in districts having a population of
27    less  than  500,000  inhabitants,  including  those districts
28    organized under Article 11 of the  School  Code.  The  school
29    board  of  any  district  having  a  population  of less than
30    500,000 inhabitants may levy a tax annually, at not to exceed
31    the maximum rates and for the specified  purposes,  upon  all
 
                            -210-    LRB093 04198 SJM 04242 b
 1    the  taxable  property  of  the  district  at  the  value, as
 2    equalized  or  assessed  by  the  Department  of  Revenue  as
 3    follows:
 4             (1)  Districts maintaining only grades 1 through  8,
 5        1.36% for general educational purposes.
 6             (2)  Districts maintaining only grades 9 through 12,
 7        1.36% for general educational purposes.
 8             (3)  Districts   maintaining   grades   kindergarten
 9        through 12, 2.63% for general educational purposes.
10             (1)  districts  maintaining only grades 1 through 8,
11        .92% for educational purposes and .25% for operations and
12        maintenance purposes;
13             (2)  districts maintaining only grades 9 through 12,
14        .92% for educational purposes and .25% for operations and
15        maintenance purposes;
16             (3)  districts  maintaining  grades  1  through  12,
17        1.63% for the 1985-86 school year, 1.68% for the  1986-87
18        school  year, 1.75% for the 1987-88 school year and 1.84%
19        for  the  1988-89  school   year   and   thereafter   for
20        educational  purposes  and  .405%  for the 1989-90 school
21        year, .435% for the 1990-91 school year,  .465%  for  the
22        1991-92 school year, and .50% for the 1992-93 school year
23        and thereafter for operations and maintenance purposes;
24             (4)  all  districts,  0.75%  for capital improvement
25        purposes (which is in addition to the levy for operations
26        and maintenance purposes), which tax  is  to  be  levied,
27        accumulated  for  not  more  than  6 years, and spent for
28        capital improvement purposes (including but  not  limited
29        to the construction of a new school building or buildings
30        or the purchase of school grounds on which any new school
31        building  is  to be constructed or located, or both) only
32        in accordance with Section 17-2.3 of this Act;
33             (5)  districts maintaining only grades 1 through  8,
34        .12% for transportation purposes, provided that districts
 
                            -211-    LRB093 04198 SJM 04242 b
 1        maintaining only grades kindergarten through 8 which have
 2        an enrollment of at least 2600 students may levy, subject
 3        to  Section  17-2.2,  at  not to exceed a maximum rate of
 4        .20% for transportation purposes for any school  year  in
 5        which  the number of students requiring transportation in
 6        the district  exceeds  by  at  least  2%  the  number  of
 7        students  requiring transportation in the district during
 8        the preceding school year, as verified in the  district's
 9        claim  for  pupil transportation and reimbursement and as
10        certified by the State Board of Education to  the  county
11        clerk of the county in which such district is located not
12        later  than  November 15 following the submission of such
13        claim; districts maintaining only grades  9  through  12,
14        .12%   for   transportation   purposes;   and   districts
15        maintaining  grades  1  through  12, .14% for the 1985-86
16        school year, .16% for the 1986-87 school year,  .18%  for
17        the  1987-88  school year and .20% for the 1988-89 school
18        year and thereafter, for transportation purposes;
19             (6)  districts providing summer  classes,  .15%  for
20        educational  purposes,  subject to Section 17-2.1 of this
21        Act.
22        Whenever any special charter  school  district  operating
23    grades  1  through  12, has organized or shall organize under
24    the  general  school  law,  the  district  so  organized  may
25    continue to levy taxes at not to exceed  the  rate  at  which
26    taxes  were  last  actually  extended  by the special charter
27    district, except that if such rate at which taxes  were  last
28    actually  extended  by such special charter district was less
29    than the maximum rate  for  districts  maintaining  grades  1
30    through  12  authorized  under  this  Section,  such  special
31    charter district nevertheless may levy taxes at a rate not to
32    exceed  the  maximum  rate for districts maintaining grades 1
33    through 12 authorized under this Section, and except that  if
34    any  such  district  maintains  only  grades 1 through 8, the
 
                            -212-    LRB093 04198 SJM 04242 b
 1    board may levy, for general educational purposes, at  a  rate
 2    not  to  exceed  the  maximum  rate  for elementary districts
 3    authorized under this Section.
 4        Whenever 2 or more school districts  reorganize  pursuant
 5    to   Article  11A  or  11B  of  this  Code  into  a  district
 6    maintaining grades kindergarten through 12, the newly  formed
 7    district  may  levy  a  tax annually, for general educational
 8    purposes, at a rate not to exceed 2.67% upon all the  taxable
 9    property  of  the  district  at  the  value  as  equalized or
10    assessed by the Department of Revenue.
11        Maximum rates before or after established  in  excess  of
12    those  prescribed shall not be affected by the amendatory Act
13    of 1965.
14    (Source: P.A. 87-984; 87-1023; 88-45.)

15        (105 ILCS 5/17-2.2c) (from Ch. 122, par. 17-2.2c)
16        Sec. 17-2.2c.  Tax for leasing educational facilities  or
17    computer  technology  or  both,  and for temporary relocation
18    expense purposes.  The  school  board  of  any  district,  by
19    proper resolution, may levy an annual tax, in addition to any
20    other  taxes  and  not  subject  to the limitations specified
21    elsewhere in this Article, not to exceed .05% upon the  value
22    of  the  taxable  property  as  equalized  or assessed by the
23    Department of Revenue, for the purpose of leasing educational
24    facilities or computer technology or both, and, in  order  to
25    repay  the  State  all moneys distributed to it for temporary
26    relocation expenses of the district, may levy an  annual  tax
27    not  to exceed .05% upon the value of the taxable property as
28    equalized or assessed by the  Department  of  Revenue  for  a
29    period not to exceed 7 years for the purpose of providing for
30    the  repayment of moneys distributed for temporary relocation
31    expenses of the school district pursuant to Section 2-3.77.
32        Whenever 2 or more school districts  reorganize  pursuant
33    to   Article  11A  or  11B  of  this  Code  into  a  district
 
                            -213-    LRB093 04198 SJM 04242 b
 1    maintaining grades kindergarten through 12, the newly  formed
 2    district  may levy a tax annually, for leasing purposes, at a
 3    rate not to exceed 0.10% upon all the taxable property of the
 4    district at  the  value  as  equalized  or  assessed  by  the
 5    Department of Revenue.
 6        The tax rate limit specified by this Section with respect
 7    to   an   annual  tax  levied  for  the  purpose  of  leasing
 8    educational facilities or computer technology or both may  be
 9    increased  to  .10%  upon  the  approval  of a proposition to
10    effect such increase by a majority of the electors voting  on
11    that  proposition  at  a  regular  scheduled  election.  Such
12    proposition may be initiated  by  resolution  of  the  school
13    board  and  shall be certified by the secretary to the proper
14    election authorities for submission in  accordance  with  the
15    general election law.
16        The  district  is  authorized  to  pledge  any tax levied
17    pursuant  to  this  Section  for  the  purpose   of   leasing
18    educational  facilities  or  computer  technology  or both to
19    secure the payment of any lease, lease-purchase agreement, or
20    installment purchase agreement entered into by  the  district
21    for such purpose.
22        For the purposes of this Section, "leasing of educational
23    facilities  or  computer  technology  or  both"  includes any
24    payment with respect to a lease, lease-purchase agreement, or
25    installment purchase agreement to acquire or  use  buildings,
26    rooms,  grounds, and appurtenances to be used by the district
27    for the use of schools or for school administration  purposes
28    and all equipment, fixtures, renovations, and improvements to
29    existing  facilities of the district necessary to accommodate
30    computers, as well as computer hardware and software.
31        Any school district may abolish or  abate  its  fund  for
32    leasing educational facilities or computer technology or both
33    and  for  temporary  relocation  expense  purposes  upon  the
34    adoption   of   a   resolution   so   providing  and  upon  a
 
                            -214-    LRB093 04198 SJM 04242 b
 1    determination by the school board that the moneys in the fund
 2    are no longer needed for leasing  educational  facilities  or
 3    computer  technology  or  both  or  for  temporary relocation
 4    expense purposes.  The resolution shall direct  the  transfer
 5    of any balance in the fund to another school district fund or
 6    funds   immediately   upon   the  resolution  taking  effect.
 7    Thereafter, any outstanding  taxes  of  the  school  district
 8    levied  pursuant  to this Section shall be collected and paid
 9    into the fund or funds  as  directed  by  the  school  board.
10    Nothing  in this Section shall prevent a school district that
11    has abolished or abated the fund from again creating  a  fund
12    for   leasing   educational   facilities  and  for  temporary
13    relocation expense purposes in the manner  provided  in  this
14    Section.
15    (Source: P.A.  89-106,  eff.  7-7-95;  90-97,  eff.  7-11-97;
16    90-464, eff. 8-17-97; 90-655, eff. 7-30-98.)

17        (105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11)
18        Sec.  17-2.11.  School  board  power  to levy a tax or to
19    borrow money and issue bonds  for  fire  prevention,  safety,
20    energy conservation, disabled accessibility, school security,
21    and  specified  repair purposes. Whenever, as a result of any
22    lawful order of any agency, other than a school board, having
23    authority to enforce any school building code  applicable  to
24    any  facility  that houses students, or any law or regulation
25    for the protection and safety of the environment, pursuant to
26    the Environmental Protection Act, any school district  having
27    a  population of less than 500,000 inhabitants is required to
28    alter or reconstruct any school building or permanent,  fixed
29    equipment;  or  whenever any such district determines that it
30    is necessary for energy conservation purposes that any school
31    building or permanent, fixed equipment should be  altered  or
32    reconstructed  and  that  such  alterations or reconstruction
33    will be made with funds not necessary for the  completion  of
 
                            -215-    LRB093 04198 SJM 04242 b
 1    approved  and  recommended  projects  contained in any safety
 2    survey report or amendments  thereto  authorized  by  Section
 3    2-3.12  of this Act; or whenever any such district determines
 4    that it is necessary for disabled accessibility purposes  and
 5    to  comply  with  the  school  building  code that any school
 6    building or equipment should be altered or reconstructed  and
 7    that  such  alterations  or  reconstruction will be made with
 8    funds not  necessary  for  the  completion  of  approved  and
 9    recommended projects contained in any safety survey report or
10    amendments  thereto  authorized  under Section 2-3.12 of this
11    Act; or whenever any such  district  determines  that  it  is
12    necessary  for  school  security  purposes  and  the  related
13    protection and safety of pupils and school personnel that any
14    school   building   or   property   should   be   altered  or
15    reconstructed  or  that  security   systems   and   equipment
16    (including  but  not limited to intercom, early detection and
17    warning, access control and  television  monitoring  systems)
18    should be purchased and installed, and that such alterations,
19    reconstruction or purchase and installation of equipment will
20    be  made  with  funds  not  necessary  for  the completion of
21    approved and recommended projects  contained  in  any  safety
22    survey  report  or  amendment  thereto  authorized by Section
23    2-3.12 of this Act and will deter  and  prevent  unauthorized
24    entry  or  activities  upon  school  property  by  unknown or
25    dangerous persons, assure early detection and advance warning
26    of  any  such  actual  or  attempted  unauthorized  entry  or
27    activities and help assure the continued safety of pupils and
28    school staff if any such unauthorized entry  or  activity  is
29    attempted  or  occurs;  or if a school district does not need
30    funds  for  other  fire  prevention  and   safety   projects,
31    including the completion of approved and recommended projects
32    contained  in  any safety survey report or amendments thereto
33    authorized  by  Section  2-3.12  of  this  Act,  and  it   is
34    determined  after  a  public hearing (which is preceded by at
 
                            -216-    LRB093 04198 SJM 04242 b
 1    least one published notice (i)  occurring  at  least  7  days
 2    prior  to  the  hearing in a newspaper of general circulation
 3    within the school district and (ii) setting forth  the  time,
 4    date,  place, and general subject matter of the hearing) that
 5    there is a substantial, immediate, and otherwise  unavoidable
 6    threat  to  the  health,  safety, or welfare of pupils due to
 7    disrepair of school sidewalks, playgrounds, parking lots,  or
 8    school bus turnarounds and repairs must be made:  then in any
 9    such  event,  such district may, by proper resolution, levy a
10    tax  for  the  purpose   of   making   such   alteration   or
11    reconstruction,  based  on a survey report by an architect or
12    engineer licensed in the State  of  Illinois,  upon  all  the
13    taxable  property of the district at the value as assessed by
14    the Department of Revenue at a rate not to exceed   .05%  per
15    year  for  a  period  sufficient to finance such alterations,
16    repairs, or reconstruction, upon the following conditions:
17             (a)  When there are not sufficient  funds  available
18        in  either  the  operations  and  maintenance fund of the
19        district or the fire prevention and safety  fund  of  the
20        district  as  determined  by the district on the basis of
21        regulations adopted by the State Board  of  Education  to
22        make  such alterations, repairs, or reconstruction, or to
23        purchase and install such permanent  fixed  equipment  so
24        ordered  or  determined  as necessary. Appropriate school
25        district records shall be made  available  to  the  State
26        Superintendent  of Education upon request to confirm such
27        insufficiency.
28             (b)  When a certified estimate of  an  architect  or
29        engineer  licensed  in  the State of Illinois stating the
30        estimated amount necessary to  make  the  alterations  or
31        repairs,  or  to  purchase  and install such equipment so
32        ordered  has  been  secured  by  the  district,  and  the
33        estimate has been approved by the regional superintendent
34        of schools, having jurisdiction of the district, and  the
 
                            -217-    LRB093 04198 SJM 04242 b
 1        State Superintendent of Education.  Approval shall not be
 2        granted for any work that has already started without the
 3        prior  express  authorization of the State Superintendent
 4        of Education.  If such estimate is not approved or denied
 5        approval by the regional superintendent of schools within
 6        3 months after the date on which it is submitted  to  him
 7        or  her, the school board of the district may submit such
 8        estimate  directly  to  the   State   Superintendent   of
 9        Education for approval or denial.
10        Whenever  2  or more school districts reorganize pursuant
11    to  Article  11A  or  11B  of  this  Code  into  a   district
12    maintaining  grades kindergarten through 12, the newly formed
13    district may  levy  a  tax  annually,  for  fire  prevention,
14    safety,  energy  conservation, disabled accessibility, school
15    security, and specified repair purposes, at  a  rate  not  to
16    exceed 0.10% upon all the taxable property of the district at
17    the  value  as  equalized  or  assessed  by the Department of
18    Revenue.
19        For purposes  of  this  Section  a  school  district  may
20    replace  a  school  building  or  build  additions to replace
21    portions of  a  building  when  it  is  determined  that  the
22    effectuation of the recommendations for the existing building
23    will   cost   more   than   the   replacement   costs.   Such
24    determination shall be based on  a  comparison  of  estimated
25    costs  made by an architect or engineer licensed in the State
26    of  Illinois.   The  new  building  or  addition   shall   be
27    equivalent  in  area  (square feet) and comparable in purpose
28    and grades served and may be on  the  same  site  or  another
29    site.   Such  replacement  may only be done upon order of the
30    regional superintendent of schools and the  approval  of  the
31    State Superintendent of Education.
32        The  filing of a certified copy of the resolution levying
33    the tax when accompanied by the certificates of the  regional
34    superintendent   of   schools  and  State  Superintendent  of
 
                            -218-    LRB093 04198 SJM 04242 b
 1    Education shall be the  authority  of  the  county  clerk  to
 2    extend such tax.
 3        The  county  clerk  of  the  county  in  which any school
 4    district levying a tax under the authority of this Section is
 5    located, in reducing raised levies, shall  not  consider  any
 6    such  tax  as  a part of the general levy for school purposes
 7    and shall not include the same in the limitation of any other
 8    tax rate which may be extended.
 9        Such tax shall be levied and collected in like manner  as
10    all   other   taxes  of  school  districts,  subject  to  the
11    provisions contained in this Section.
12        The tax rate limit  specified  in  this  Section  may  be
13    increased  to  .10%  upon  the  approval  of a proposition to
14    effect such increase by a majority of the electors voting  on
15    that  proposition  at  a  regular  scheduled  election.  Such
16    proposition  may  be  initiated  by  resolution of the school
17    board and shall be certified by the secretary to  the  proper
18    election  authorities  for  submission in accordance with the
19    general election law.
20        When taxes are levied by any  school  district  for  fire
21    prevention,  safety, energy conservation, and school security
22    purposes as specified in this Section, and the  purposes  for
23    which the taxes have been levied are accomplished and paid in
24    full,  and  there remain funds on hand in the Fire Prevention
25    and Safety Fund  from  the  proceeds  of  the  taxes  levied,
26    including  interest  earnings  thereon,  the  school board by
27    resolution shall use such excess and other  board  restricted
28    funds excluding bond proceeds and earnings from such proceeds
29    (1)  for  other  authorized  fire  prevention, safety, energy
30    conservation,  and  school  security  purposes  or  (2)   for
31    transfer  to  the  Operations  and  Maintenance  Fund for the
32    purpose  of  abating  an  equal  amount  of  operations   and
33    maintenance  purposes  taxes.  If any transfer is made to the
34    Operation and Maintenance Fund, the secretary of  the  school
 
                            -219-    LRB093 04198 SJM 04242 b
 1    board  shall  within  30  days notify the county clerk of the
 2    amount of that transfer and direct the  clerk  to  abate  the
 3    taxes  to  be  extended  for  the  purposes of operations and
 4    maintenance authorized under Section 17-2 of this Act  by  an
 5    amount equal to such transfer.
 6        If  the  proceeds  from  the  tax levy authorized by this
 7    Section are insufficient to complete the work approved  under
 8    this  Section,  the  school board is authorized to sell bonds
 9    without referendum under the provisions of this Section in an
10    amount that, when added to  the  proceeds  of  the  tax  levy
11    authorized  by  this  Section,  will  allow completion of the
12    approved work.
13        Such bonds shall bear interest at a rate  not  to  exceed
14    the  maximum rate authorized by law at the time of the making
15    of the contract, shall mature within 20 years from date,  and
16    shall  be signed by the president of the school board and the
17    treasurer of the school district.
18        In order to authorize and issue such  bonds,  the  school
19    board  shall  adopt  a resolution fixing the amount of bonds,
20    the date thereof, the maturities thereof, rates  of  interest
21    thereof, place of payment and denomination, which shall be in
22    denominations of not less than $100 and not more than $5,000,
23    and  provide  for  the levy and collection of a direct annual
24    tax upon all the taxable  property  in  the  school  district
25    sufficient to pay the principal and interest on such bonds to
26    maturity.   Upon the filing in the office of the county clerk
27    of the county in which the school district is  located  of  a
28    certified  copy  of  the  resolution,  it  is the duty of the
29    county clerk to extend the tax therefor in addition to and in
30    excess of all other taxes heretofore or hereafter  authorized
31    to be levied by such school district.
32        After  the  time such bonds are issued as provided for by
33    this Section, if additional  alterations  or  reconstructions
34    are  required  to  be made because of surveys conducted by an
 
                            -220-    LRB093 04198 SJM 04242 b
 1    architect or engineer licensed in the State of Illinois,  the
 2    district may levy a tax at a rate not to exceed .05% per year
 3    upon  all  the  taxable  property  of  the  district or issue
 4    additional  bonds,  whichever  action  shall  be   the   most
 5    feasible.
 6        This  Section  is  cumulative  and  constitutes  complete
 7    authority  for  the  issuance  of  bonds  as provided in this
 8    Section notwithstanding any  other  statute  or  law  to  the
 9    contrary.
10        With  respect  to  instruments  for  the payment of money
11    issued under this Section either before,  on,  or  after  the
12    effective  date  of  Public Act 86-004 (June 6, 1989), it is,
13    and always has been, the intention of  the  General  Assembly
14    (i)  that  the  Omnibus  Bond Acts are, and always have been,
15    supplementary  grants  of  power  to  issue  instruments   in
16    accordance  with  the  Omnibus  Bond  Acts, regardless of any
17    provision of this Act that may appear to be or to  have  been
18    more restrictive than those Acts, (ii) that the provisions of
19    this  Section  are  not  a  limitation  on  the supplementary
20    authority granted by the Omnibus Bond Acts,  and  (iii)  that
21    instruments    issued   under   this   Section   within   the
22    supplementary authority granted by the Omnibus Bond Acts  are
23    not  invalid  because  of  any provision of this Act that may
24    appear to be or to have  been  more  restrictive  than  those
25    Acts.
26        When  the  purposes  for  which the bonds are issued have
27    been accomplished and paid for in full and there remain funds
28    on hand from the proceeds  of  the  bond  sale  and  interest
29    earnings  therefrom, the board shall, by resolution, use such
30    excess funds in accordance with  the  provisions  of  Section
31    10-22.14 of this Act.
32        Whenever  any  tax  is  levied  or  bonds issued for fire
33    prevention, safety, energy conservation, and school  security
34    purposes,  such proceeds shall be deposited and accounted for
 
                            -221-    LRB093 04198 SJM 04242 b
 1    separately within the Fire Prevention and Safety Fund.
 2    (Source: P.A. 88-251; 88-508; 88-628,  eff.  9-9-94;  88-670,
 3    eff. 12-2-94; 89-235, eff. 8-4-95; 89-397, eff. 8-20-95.)

 4        (105 ILCS 5/17-2C)
 5        Sec.  17-2C.  Transfer from Restricted Uses Tort Immunity
 6    Fund by financially distressed school districts.  The  school
 7    board  of any school district that is certified under Section
 8    19-1.5 as a financially distressed  school  district  may  by
 9    resolution  transfer  from  the Restricted Uses Tort Immunity
10    Fund to any other school district fund an amount of money not
11    to exceed the lesser of $2,500,000 or 0.6% of  the  value  of
12    the taxable property within the district, provided the amount
13    transferred  is  not  then  required  for  the payment of any
14    liabilities created by a  settlement  or  a  tort  judgement,
15    defense  costs,  or  for the payment of any liabilities under
16    the Unemployment Insurance Act,  Workers'  Compensation  Act,
17    Workers'  Occupational  Diseases Act, or risk care management
18    programs.
19    (Source: P.A. 91-357, eff. 7-29-99.)

20        (105 ILCS 5/17-3) (from Ch. 122, par. 17-3)
21        Sec. 17-3. Additional levies-Submission  to  voters.  The
22    school board in any district having a population of less than
23    500,000  inhabitants  may,  by  proper  resolution,  cause  a
24    proposition  to  increase,  for  a limited period of not less
25    than 3 nor more than 10 years or for an unlimited period, the
26    annual tax  rate  for  general  educational  purposes  to  be
27    submitted  to  the  voters  of  such  district  at  a regular
28    scheduled election as follows:
29             (1)  in districts maintaining grades 1 through 8, or
30        grades 9 through 12, the  maximum  rate  for  educational
31        purposes  shall  not  exceed  5.10%  3.5% of the value as
32        equalized or assessed by the Department of Revenue;
 
                            -222-    LRB093 04198 SJM 04242 b
 1             (2)  in districts maintaining grades kindergarten  1
 2        through  12  the  maximum  rate  for  general educational
 3        purposes shall not exceed 6.45%. 4.00%, except that if  a
 4        single  elementary  district  and  a  secondary  district
 5        having  boundaries  that are coterminous on the effective
 6        date  of  this  amendatory  Act  form  a  community  unit
 7        district under Section 11-6, then the  maximum  rate  for
 8        education  purposes  for  such  district shall not exceed
 9        6.00% of the  value  as  equalized  or  assessed  by  the
10        Department of Revenue.
11        If  the  resolution of the school board seeks to increase
12    the annual tax rate for educational purposes  for  a  limited
13    period  of  not  less  than  3  nor  more  than 10 years, the
14    proposition shall so state and shall identify the  years  for
15    which the tax increase is sought.
16        If  a majority of the votes cast on the proposition is in
17    favor  thereof  at  an  election  for  which   the   election
18    authorities  have  given notice either (i) in accordance with
19    Section 12-5 of the Election Code or (ii) by publication of a
20    true and legible copy of the specimen ballot label containing
21    the proposition in the form in  which  it  appeared  or  will
22    appear  on  the  official  ballot  label  on  the  day of the
23    election at least 5 days before the day of the election in at
24    least  one  newspaper  published  in  and  having  a  general
25    circulation in the district, the school board may thereafter,
26    until such authority is revoked in like manner, levy annually
27    the tax so authorized; provided that if  the  proposition  as
28    approved  limits  the  increase in the annual tax rate of the
29    district for educational purposes to a  period  of  not  less
30    than  3 nor more than 10 years, the district may, unless such
31    authority is sooner revoked in like manner, levy annually the
32    tax so authorized for the limited number of years approved by
33    a majority of  the  votes  cast  on  the  proposition.   Upon
34    expiration  of  that  limited  period,  the rate at which the
 
                            -223-    LRB093 04198 SJM 04242 b
 1    district may annually levy its tax for  educational  purposes
 2    shall be the rate provided under Section 17-2, or the rate at
 3    which  the  district  last  levied  its  tax  for educational
 4    purposes prior to approval of the proposition authorizing the
 5    levy of that tax at an increased rate, whichever is greater.
 6        The school board shall certify  the  proposition  to  the
 7    proper  election  authorities  in accordance with the general
 8    election law.
 9        The provisions of this Section concerning notice  of  the
10    tax  rate  increase  referendum  apply  only  to consolidated
11    primary elections held prior to January 1, 2002 at which  not
12    less  than  55% of the voters voting on the tax rate increase
13    proposition  voted  in  favor  of  the  tax   rate   increase
14    proposition.
15    (Source: P.A. 92-6, eff. 6-7-01.)

16        (105 ILCS 5/17-3.2) (from Ch. 122, par. 17-3.2)
17        Sec.  17-3.2. Additional or supplemental budget. Whenever
18    the voters of a school district have voted  in  favor  of  an
19    increase  in  the  annual tax rate for general educational or
20    operations and maintenance purposes or both  at  an  election
21    held  after  the adoption of the annual school budget for any
22    fiscal year, the board may adopt or pass during  that  fiscal
23    year  an  additional  or  supplemental  budget under the sole
24    authority of this Section by a vote of a majority of the full
25    membership of the board, any other provision of this  Article
26    to  the  contrary  notwithstanding,  in  and  by  which  such
27    additional or supplemental budget the board shall appropriate
28    such  additional  sums  of  money as it may find necessary to
29    defray expenses  and  liabilities  of  that  district  to  be
30    incurred   for   general   educational   or   operations  and
31    maintenance purposes or both  of  the  district  during  that
32    fiscal  year,  but  not  in  excess  of  the additional funds
33    estimated to be available by virtue of such voted increase in
 
                            -224-    LRB093 04198 SJM 04242 b
 1    the annual tax rate for general educational or operations and
 2    maintenance purposes or both. Such additional or supplemental
 3    budget shall be regarded as an amendment of the annual school
 4    budget for the fiscal year in which it is  adopted,  and  the
 5    board  may levy the additional tax for general educational or
 6    operations and maintenance purposes  or  both  to  equal  the
 7    amount  of  the additional sums of money appropriated in that
 8    additional or supplemental budget, immediately.
 9    (Source: P.A. 86-1334.)

10        (105 ILCS 5/17-3.4) (from Ch. 122, par. 17-3.4)
11        Sec. 17-3.4.  Form  of  ballot  and  notice.   Except  as
12    otherwise  provided  under  subsection (d) of Section 17-6.1,
13    Whenever any proposition to authorize or to  levy  an  annual
14    tax,  or  to  increase  the  annual rate of tax levied by any
15    school district, for any school purpose is submitted  to  the
16    voters of such district at any election, each required notice
17    or  other  publication  of the election or referendum and the
18    form of ballot  shall  contain,  in  addition  to  any  other
19    matters required by law:
20             (a)  the  geographic  or  other  common  name of the
21        school district by which that district is commonly  known
22        and referred to, as well as the number of the district;
23             (b)  the  maximum  rate  at  which  such  tax may be
24        levied if the proposition is approved;
25             (c)  the total dollar amount of  the  most  recently
26        approved  annual  budget of the school district, what the
27        total dollar amount of that annual  budget  would  be  if
28        increased  by  the  amount of additional tax which may be
29        levied if the proposition is approved, and what would  be
30        the  percentage of increase in the total dollar amount of
31        the most recently approved annual budget  of  the  school
32        district  if  such  total dollar amount were increased by
33        the amount of additional tax which may be levied  if  the
 
                            -225-    LRB093 04198 SJM 04242 b
 1        proposition is approved; and
 2        (d)  if the proposition is to increase the annual rate of
 3    an  existing  tax  levied  by  the  school  district, then in
 4    addition to the matters set forth in (a), (b) and (c)  above,
 5    the  annual  rate  at  which  such  existing tax currently is
 6    levied and the percentage of  increase  between  the  maximum
 7    rate  at  which  such tax may be levied if the proposition is
 8    approved and the annual rate at which such tax  currently  is
 9    levied.
10    (Source: P.A. 86-579; 86-1318.)

11        (105 ILCS 5/17-7) (from Ch. 122, par. 17-7)
12        Sec.  17-7. Payments from tax levied. Any sum expended or
13    obligations incurred for the improvement, maintenance, repair
14    or benefit of school buildings and  property,  including  the
15    cost   of   interior   decorating   and   the   installation,
16    improvement,  repair, replacement and maintenance of building
17    fixtures, for the rental of buildings and property for school
18    purposes, or for the payment of all  premiums  for  insurance
19    upon school buildings and school building fixtures or for the
20    purchase  or equipment to be used in the school lunch program
21    shall be paid from the tax  levied  for  general  educational
22    operations  and  maintenance  purposes  and  the  purchase of
23    school grounds. The board may provide by resolution that  the
24    payment  of  all  salaries  of  janitors,  engineers or other
25    custodial employees and  all  costs  of  fuel,  lights,  gas,
26    water,   telephone   service,   and  custodial  supplies  and
27    equipment or  the  cost  of  a  professional  survey  of  the
28    conditions of school buildings as provided in Section 2-3.12,
29    or  any one or more of the preceding items shall be paid from
30    the  tax  levied  for  general  educational  operations   and
31    maintenance  purposes  and  the purchase of school grounds in
32    which event such salaries or specified costs, or both,  shall
33    be  so  paid  until  the next fiscal year after the repeal of
 
                            -226-    LRB093 04198 SJM 04242 b
 1    such resolution. Expenditures for all purposes not  specified
 2    in  Sections  17-7  or  17-8  or other provisions of this Act
 3    shall be made from the general educational fund.
 4    (Source: P.A. 86-1334; 87-984.)

 5        (105 ILCS 5/17-8) (from Ch. 122, par. 17-8)
 6        Sec. 17-8.  Transportation costs paid from transportation
 7    fund.  Any  transportation  operating  costs   incurred   for
 8    transporting  pupils  to and from school and school sponsored
 9    activities and the costs of acquiring equipment shall be paid
10    from a transportation fund to consist of moneys received from
11    any tax levy for general educational purposes  such  purpose,
12    state reimbursement for transportation, except as provided in
13    Section  29-5,  all  funds  received from other districts for
14    transporting  pupils  and  any  charges  for   transportation
15    services  rendered to individuals or auxiliary enterprises of
16    the school.
17        For the purpose of  this  Act  "transportation  operating
18    cost"  shall  include  all  costs  of  transportation  except
19    interest and rental of building facilities.
20    (Source: P.A. 85-581.)

21        (105 ILCS 5/17-9) (from Ch. 122, par. 17-9)
22        Sec.  17-9.  Extension  of taxes by county clerk-Separate
23    tax for payment of bonds.
24        When the county clerk determines the amount of  taxes  to
25    be  extended  upon  all  the  taxable  property in any school
26    district  having  a   population   of   less   than   500,000
27    inhabitants,  he shall determine from the certified copies of
28    bond resolutions filed in his office the amount necessary  to
29    pay  the  maturing  principal of and interest on any bonds of
30    the district and shall extend a separate  tax  sufficient  to
31    pay all principal and interest thereon which matures prior to
32    the  first  delinquent  date of taxes to be realized from the
 
                            -227-    LRB093 04198 SJM 04242 b
 1    next succeeding tax extension or  all  interest  and  sinking
 2    fund  requirements for the payment of principal which must be
 3    extended prior to  said  date.  The  separate  tax  shall  be
 4    extended   without  limitation  as  to  rate  or  amount.  No
 5    deduction shall be made in the rate which may be extended for
 6    general educational or operations, building  and  maintenance
 7    purposes  by  reason  of  any  rate  extended  for payment of
 8    principal or interest of bonds, except as  provided  in  this
 9    section,  nor  by  reason  of any tax required to be extended
10    pursuant to the exercise of the power  conferred  in  Section
11    10-22.12.
12    (Source: P.A. 77-2744.)

13        (105 ILCS 5/17-11) (from Ch. 122, par. 17-11)
14        Sec.  17-11.   Certificate of tax levy.  The school board
15    of each district shall ascertain,  as  near  as  practicable,
16    annually,  how  much  money must be raised by special tax for
17    transportation purposes if any and  for  general  educational
18    and  for  operations  and  maintenance  purposes for the next
19    ensuing year.  In school districts with a population of  less
20    than  500,000,  these amounts shall be certified and returned
21    to each county  clerk  on  or  before  the  last  Tuesday  in
22    December,  annually.   The certificate shall be signed by the
23    president and clerk or secretary, and may be in the following
24    form:
25                       CERTIFICATE OF TAX LEVY
26        We hereby certify that  we  require  the  sum  of  ......
27    dollars,  to  be  levied  as a special tax for transportation
28    purposes and the sum of ...... dollars  to  be  levied  as  a
29    special  tax  for  general  educational purposes, and the sum
30    ...... dollars to be levied as a special tax  for  operations
31    and maintenance purposes, and the sum of ......, to be levied
32    as  a  special  tax  for a working purposes cash fund, on the
33    equalized assessed value  of  the  taxable  property  of  our
 
                            -228-    LRB093 04198 SJM 04242 b
 1    district, for the year (insert year).
 2        Signed on (insert date).
 3        A ........... B ............., President
 4        C ........... D............., Clerk (Secretary)
 5        Dist. No. .........., ............ County

 6        A  failure  by  the  school board to file the certificate
 7    with the county clerk in the time required shall not  vitiate
 8    the assessment.
 9    (Source: P.A. 91-357, eff. 7-29-99.)

10        (105 ILCS 5/17-12) (from Ch. 122, par. 17-12)
11        Sec.  17-12.  Districts  in  two or more counties. When a
12    district lies partly in two or more counties the school board
13    shall ascertain, as near as practicable,  the  amount  to  be
14    raised  by special tax for general educational and operations
15    and maintenance purposes and shall prepare a certificate  for
16    each  county in which the district lies and shall deliver one
17    of such certificates to each of  the  county  clerks  of  the
18    counties  in which a part of the district is situated. On the
19    first Monday following the delivery of the certificate, or as
20    soon thereafter as may  be  practicable,  each  county  clerk
21    shall  ascertain  the  total  equalized  valuation of all the
22    taxable property in that part of the district as lies in  his
23    county, and certify the amount thereof to the county clerk of
24    each  of the other counties in which any part of the district
25    lies. From  the aggregate of  such  equalized  valuation  and
26    from  the certificate of the amount so required to be levied,
27    such clerk shall ascertain the  rate  per  cent  required  to
28    produce  in the district the amount of such levy, and at that
29    rate shall extend the special tax to be  levied  for  general
30    educational  and  operations and maintenance purposes in that
31    part of the district lying in his respective county.
32    (Source: P.A. 86-1334.)
 
                            -229-    LRB093 04198 SJM 04242 b
 1        (105 ILCS 5/17-16) (from Ch. 122, par. 17-16)
 2        Sec. 17-16. Tax anticipation warrants. When there  is  no
 3    money  in  the  treasury  of  any  school  district  having a
 4    population of 500,000 or less inhabitants,  whether  governed
 5    by  either  or  both  the  general school laws or any special
 6    charter, to defray the necessary expenses  of  the  district,
 7    including  amounts  necessary  to  pay maturing principal and
 8    interest of bonds, the school board may  issue  warrants,  or
 9    may  provide  a  fund  to  meet  the  expenses by issuing and
10    disposing of warrants, drawn against and in  anticipation  of
11    any taxes levied for the payment of the necessary expenses of
12    the  district, either for general transportation, educational
13    or for  all  operations  and  maintenance  purposes,  or  for
14    payments  to  the  Illinois Municipal Retirement Fund, or for
15    the payment of maturing principal and interest of  bonds,  or
16    for  fire  prevention, safety, energy conservation and school
17    security purposes, as the case may be, to the extent  of  85%
18    of  the total amount of the tax so levied. The warrants shall
19    show upon their face that they are payable in  the  numerical
20    order   of   their  issuance  solely  from  such  taxes  when
21    collected, and shall be received by any collector of taxes in
22    payment of the taxes against which they are issued, and  such
23    taxes shall be set apart and held for their payment.
24        Every  warrant  shall  bear interest, payable only out of
25    the taxes against which it is drawn, at a rate not  exceeding
26    the maximum rate authorized by the Bond Authorization Act, as
27    amended  at the time of the making of the contract, if issued
28    before July 1, 1971 and if issued thereafter at the  rate  of
29    not  to  exceed  the  maximum  rate  authorized  by  the Bond
30    Authorization Act, as amended at the time of  the  making  of
31    the  contract,  from  the  date of its issuance until paid or
32    until notice shall be given by publication in a newspaper  or
33    otherwise  that  the  money  for its payment is available and
34    that it will be paid on presentation, unless a lower rate  of
 
                            -230-    LRB093 04198 SJM 04242 b
 1    interest  is  specified  therein,  in which case the interest
 2    shall be computed and paid at the lower rate.
 3        With respect to instruments  for  the  payment  of  money
 4    issued  under  this  Section  either before, on, or after the
 5    effective date of this amendatory Act  of  1989,  it  is  and
 6    always  has  been  the  intention of the General Assembly (i)
 7    that  the  Omnibus  Bond  Acts  are  and  always  have   been
 8    supplementary   grants  of  power  to  issue  instruments  in
 9    accordance with the Omnibus  Bond  Acts,  regardless  of  any
10    provision  of  this Act that may appear to be or to have been
11    more restrictive than those Acts, (ii) that the provisions of
12    this Section  are  not  a  limitation  on  the  supplementary
13    authority  granted  by  the Omnibus Bond Acts, and (iii) that
14    instruments   issued   under   this   Section   within    the
15    supplementary  authority granted by the Omnibus Bond Acts are
16    not invalid because of any provision of  this  Act  that  may
17    appear  to  be  or  to  have been more restrictive than those
18    Acts.
19    (Source: P.A. 86-4; 86-1334; 87-984.)

20        (105 ILCS 5/19-30) (from Ch. 122, par. 19-30)
21        Sec.  19-30.  Any  school  district  which,  pursuant  to
22    Section 10-22.31b of this  Act,  has  entered  into  a  joint
23    agreement  with  one  or  more  school  districts to acquire,
24    build, establish and maintain sites and  buildings  for  area
25    vocational purposes may by proper resolution borrow money for
26    the  purpose  of  acquiring sites and buildings and building,
27    equipping, improving and remodeling buildings and  sites  for
28    vocational   education  purposes  and  as  evidence  of  such
29    indebtedness issue bonds without  referendum,  provided  that
30    the  project which is the subject of such joint agreement has
31    been designated by the State Board  of  Vocational  Education
32    and  Rehabilitation  as  an Area Secondary Vocational Center,
33    and  further  provided  (a)  that  such  district  has   been
 
                            -231-    LRB093 04198 SJM 04242 b
 1    authorized  by  referendum  to  impose  the tax under Section
 2    17-2.4 of this Act, or (b) that  such  district,  not  having
 3    been  so  authorized  by  such  referendum, by resolution has
 4    authorized the payment of its proportionate share of the cost
 5    of the area vocational center under such agreement from funds
 6    raised by building tax levies.  The proceeds of the  sale  of
 7    such  bonds may, in the discretion of the school board of the
 8    district issuing such bonds, be transferred  to  the  Capital
 9    Development Board, any other school district which is a party
10    to  such  joint agreement or the State or any of its agencies
11    provided, however, that such board first determines that such
12    transfer is necessary in order to accomplish the purposes for
13    which such bonds are issued.  The amount of the bonds  issued
14    by  any  such  participating school district shall not exceed
15    the district's estimated proportionate share of the  cost  of
16    the  area  vocational center as budgeted under such agreement
17    and as certified by the State Board of  Vocational  Education
18    and   Rehabilitation,   and   provided   that  (a)  any  such
19    participating  district  which   has   been   authorized   by
20    referendum  to  impose  the  tax under Section 17-2.4 of this
21    Act, shall thereafter reduce  the  maximum  statutory  amount
22    which  may be raised by such levy under Section 17-2.4 to the
23    extent of the total amount to be yielded by the imposition of
24    the  tax  authorized  by  this  Section,  and  (b)  any  such
25    participating district, not having been so authorized by such
26    referendum, but having by resolution authorized  the  payment
27    of its proportionate share of the cost of the area vocational
28    center  under  such  joint  agreement  from  funds  raised by
29    building tax levies, shall thereafter,  annually  reduce  the
30    maximum statutory amount which may be raised by such building
31    tax levies to the extent of the amount to be yielded annually
32    by  the  imposition  of  the  tax authorized by this Section.
33    Such bonds shall bear interest at a rate of not to exceed the
34    maximum rate authorized by the  Bond  Authorization  Act,  as
 
                            -232-    LRB093 04198 SJM 04242 b
 1    amended  at the time of the making of the contract, and shall
 2    mature within 20 years from date.
 3        The failure on the part of a school district to abate  or
 4    reduce  such  taxes  as described in this Section (a) and (b)
 5    shall not constitute a forfeiture  by  the  district  of  its
 6    right  to  levy  the  direct  annual  tax  authorized by this
 7    Section.
 8        In order to authorize and issue such  bonds,  the  school
 9    board  shall  adopt  a  resolution  fixing  the amount of the
10    bonds,  the  date  thereof,  maturities  thereof,  rates   of
11    interest  thereof,  place  of payment and denomination, which
12    shall be in denominations of not less than $100 and not  more
13    than  $5,000  and  provide  for  the levy and collection of a
14    direct annual tax upon all the taxable property in the school
15    district sufficient to pay the principal of and  interest  on
16    such bonds to maturity.  Upon the filing in the office of the
17    County Clerk or Clerks of the County or Counties in which the
18    school  district  is  located  of  a  certified  copy of such
19    resolution it shall be the  duty  of  such  County  Clerk  or
20    Clerks  to  extend  the  tax  therefor, in addition to and in
21    excess of all other taxes heretofore or hereafter  authorized
22    to be levied by such school district.
23        This  Section shall be cumulative and it shall constitute
24    complete  authority  for  site  acquisitions   and   building
25    programs  and  for  the  issuance  of  bonds  as provided for
26    hereunder, notwithstanding any other statute or  law  to  the
27    contrary.
28        With  respect  to  instruments  for  the payment of money
29    issued under this Section either before,  on,  or  after  the
30    effective  date  of  this  amendatory  Act of 1989, it is and
31    always has been the intention of  the  General  Assembly  (i)
32    that   the  Omnibus  Bond  Acts  are  and  always  have  been
33    supplementary  grants  of  power  to  issue  instruments   in
34    accordance  with  the  Omnibus  Bond  Acts, regardless of any
 
                            -233-    LRB093 04198 SJM 04242 b
 1    provision of this Act that may appear to be or to  have  been
 2    more restrictive than those Acts, (ii) that the provisions of
 3    this  Section  are  not  a  limitation  on  the supplementary
 4    authority granted by the Omnibus Bond Acts,  and  (iii)  that
 5    instruments    issued   under   this   Section   within   the
 6    supplementary authority granted by the Omnibus Bond Acts  are
 7    not  invalid  because  of  any provision of this Act that may
 8    appear to be or to have  been  more  restrictive  than  those
 9    Acts.
10    (Source: P.A. 86-4.)

11        (105 ILCS 5/19-31) (from Ch. 122, par. 19-31)
12        Sec.  19-31.   Any  school  district  which,  pursuant to
13    Section 10-22.31b of this Act, or under the provisions of the
14    "Intergovernmental Cooperation Act", has entered into a joint
15    agreement or contract with one or more  school  districts  to
16    acquire,  build,  establish  and maintain sites and buildings
17    for the education of one or more of  the  types  of  children
18    with  disabilities  as  defined  in  Sections 14-1.02 through
19    14-1.07 of this Act, may by proper resolution  of  the  board
20    borrow money for the purpose of acquiring sites and buildings
21    and  building,  equipping, improving and remodeling buildings
22    and  sites  for  such  special  education  purposes,  and  as
23    evidence of such indebtedness issue bonds, provided that  the
24    project which is the subject of such joint agreement has been
25    approved  by  the  State Board of Education.  The proceeds of
26    the sale of such bonds may, in the discretion of  the  school
27    board  of  the district issuing such bonds, be transferred to
28    the Capital Development  Board,  any  other  school  district
29    which is a party to such joint agreement, or the State or any
30    of  its  agencies  provided,  however,  that such board first
31    determines that  such  transfer  is  necessary  in  order  to
32    accomplish the purposes for which such bonds are issued.  The
33    amount  of  the bonds issued by any such participating school
 
                            -234-    LRB093 04198 SJM 04242 b
 1    district  shall   not   exceed   the   district's   estimated
 2    proportionate  share  of  the  cost of such special education
 3    purposes as budgeted under such joint agreement or  contract,
 4    and shall be amortized over a period not exceeding the number
 5    of  years  of  levy remaining available to such participating
 6    school district  under  Section  17-2.2a  of  this  Act,  and
 7    provided  further  that any such participating district shall
 8    thereafter reduce the maximum statutory amount which  may  be
 9    raised  by  the  tax levy authorized under Section 17-2.2a of
10    this Act to the extent of the total amount to be  yielded  by
11    the  imposition  of  the tax authorized by this Section.  The
12    failure on the part of a school district to abate  or  reduce
13    such  taxes  shall not however constitute a forfeiture by the
14    district  of  its  right  to  levy  the  direct  annual   tax
15    authorized by this Section.
16        Such bonds shall bear interest at a rate of not to exceed
17    the maximum rate authorized by the Bond Authorization Act, as
18    amended  at the time of the making of the contract, and shall
19    mature within 8 years from the date of issuance.  In order to
20    authorize and issue such bonds, the school board shall  adopt
21    a  resolution  fixing  the  amount  of  the  bonds,  the date
22    thereof, maturities thereof, rates of interest thereof, place
23    of payment and denomination, which shall be in  denominations
24    of  not  less  than $100 and not more than $5,000 and provide
25    for the levy and collection of a direct annual tax  upon  all
26    the taxable property in the school district sufficient to pay
27    the  principal of and interest on such bonds to maturity, but
28    not to exceed the  levy  authorized  under  Section  17-2.2a.
29    Upon  the  filing in the office of the County Clerk or Clerks
30    of the County or Counties in which  the  school  district  is
31    located  of  a  certified copy of such resolution it shall be
32    the duty of such County Clerk or Clerks  to  extend  the  tax
33    therefor,  in  addition  to  and in excess of all other taxes
34    heretofore or hereafter  authorized  to  be  levied  by  such
 
                            -235-    LRB093 04198 SJM 04242 b
 1    school district.
 2        This  Section shall be cumulative and it shall constitute
 3    complete  authority  for  site  acquisitions   and   building
 4    programs  and  for  the  issuance  of  bonds  as provided for
 5    hereunder, notwithstanding any other statute or  law  to  the
 6    contrary.
 7        Notwithstanding the other provisions of this Section, any
 8    school   district   qualifying   for   a   special  education
 9    construction grant pursuant to the Capital Development  Board
10    Act  may  finance the construction project by levying the tax
11    authorized by Section 17-2.2a and issuing bonds in the manner
12    provided for in this Section at a  rate  not  to  exceed  the
13    maximum  rate  authorized  by  the Bond Authorization Act, as
14    amended at the time of the making of  the  contract,  with  a
15    maturity  date  not  more  than  20  years  from  the date of
16    issuance.
17        With respect to instruments  for  the  payment  of  money
18    issued  under  this  Section  either before, on, or after the
19    effective date of this amendatory Act  of  1989,  it  is  and
20    always  has  been  the  intention of the General Assembly (i)
21    that  the  Omnibus  Bond  Acts  are  and  always  have   been
22    supplementary   grants  of  power  to  issue  instruments  in
23    accordance with the Omnibus  Bond  Acts,  regardless  of  any
24    provision  of  this Act that may appear to be or to have been
25    more restrictive than those Acts, (ii) that the provisions of
26    this Section  are  not  a  limitation  on  the  supplementary
27    authority  granted  by  the Omnibus Bond Acts, and (iii) that
28    instruments   issued   under   this   Section   within    the
29    supplementary  authority granted by the Omnibus Bond Acts are
30    not invalid because of any provision of  this  Act  that  may
31    appear  to  be  or  to  have been more restrictive than those
32    Acts.
33    (Source: P.A. 89-397, eff. 8-20-95.)
 
                            -236-    LRB093 04198 SJM 04242 b
 1        (105 ILCS 5/Art. 20 heading)
 2            ARTICLE 20. RESTRICTED USES WORKING CASH FUND

 3        (105 ILCS 5/20-1) (from Ch. 122, par. 20-1)
 4        Sec. 20-1. Authority to create  restricted  uses  working
 5    cash  fund.  In each school district, whether organized under
 6    general law or special charter, having a population  of  less
 7    than 500,000 inhabitants, a fund to be known as a "Restricted
 8    Uses  Working  Cash  Fund"  may  be  created,  maintained and
 9    administered in the manner prescribed in  this  Article,  for
10    the  purpose of enabling the district to have in its treasury
11    at all time sufficient money  to  meet  demands  thereon  for
12    ordinary  and  necessary expenditures for corporate purposes.
13    In  addition,  expenses  for  benefits  paid  to   classified
14    employees  and tort judgment expenses shall be paid from this
15    fund.
16        If involving a school district  having  a  population  of
17    less   than  500,000  inhabitants,  references  to  a  school
18    district's working cash fund under this Code or any other law
19    of this State shall be deemed to  refer  to  that  district's
20    restricted uses fund.
21    (Source: P.A. 80-272.)

22        (105 ILCS 5/20-2) (from Ch. 122, par. 20-2)
23        Sec.  20-2.  Indebtedness  and  bonds. For the purpose of
24    creating a restricted uses  working  cash  fund,  the  school
25    board  of  any  such  district  may incur an indebtedness and
26    issue working cash bonds as evidence thereof in an amount  or
27    amounts  not  exceeding  in  the  aggregate  85% of the taxes
28    permitted to be levied for general educational  purposes  for
29    the  then  current  year  to be determined by multiplying the
30    maximum general  educational  tax  rate  applicable  to  such
31    school  district by the last assessed valuation as determined
32    at the time of the issue of said bonds plus 85% of  the  last
 
                            -237-    LRB093 04198 SJM 04242 b
 1    known  entitlement of such district to taxes as by law now or
 2    hereafter enacted or amended, imposed by the General Assembly
 3    of the State of Illinois to replace revenue lost by units  of
 4    local  government  and  school  districts  as a result of the
 5    abolition of ad valorem personal property taxes, pursuant  to
 6    Article  IX,  Section 5, paragraph (c) of the Constitution of
 7    the State  of  Illinois,  except  that  a  district  that  is
 8    certified  under  Section  19-1.5 as a financially distressed
 9    district  may  incur  an  indebtedness  and  issue  bonds  as
10    evidence thereof in an amount or amounts not exceeding in the
11    aggregate 125% of  the  taxes  permitted  to  be  levied  for
12    general  educational purposes for the then current year to be
13    determined by multiplying the maximum general educational tax
14    rate applicable to that school district by the last  assessed
15    valuation  as  determined  at the time of the issuance of the
16    bonds plus  125%  of  the  last  known  entitlement  of  that
17    district  to  taxes  that  by law now or hereafter enacted or
18    amended are  imposed  by  the  General  Assembly  to  replace
19    revenue   lost  by  units  of  local  government  and  school
20    districts as a result of the abolition of ad valorem personal
21    property taxes, pursuant to Article IX, Section 5,  paragraph
22    (c)  of  the Constitution of the State of Illinois. The bonds
23    shall bear  interest  at  not  more  than  the  maximum  rate
24    authorized  by  the Bond Authorization Act, as amended at the
25    time of the making of the contract, if issued before  January
26    1,  1972 and not more than the maximum rate authorized by the
27    Bond Authorization Act, as amended at the time of the  making
28    of  the  contract,  if issued after January 1, 1972 and shall
29    mature within 20 years from the date thereof. Subject to  the
30    foregoing  limitations  as to amount, the bonds may be issued
31    in an amount including existing indebtedness which  will  not
32    exceed    the   constitutional   limitation   as   to   debt,
33    notwithstanding  any  statutory  debt   limitation   to   the
34    contrary. When bonds have been issued under this Article by a
 
                            -238-    LRB093 04198 SJM 04242 b
 1    school district that is certified as a financially distressed
 2    district  under  Section  19-1.5,  the amount of those bonds,
 3    when and after they are  issued,  whether  issued  before  or
 4    after  such certification, shall not be considered debt under
 5    any statutory debt limitation and shall be excluded from  the
 6    computation  and determination of any statutory or other debt
 7    limitation applicable to the financially distressed district.
 8    The school board shall before or at the time of  issuing  the
 9    bonds  provide for the collection of a direct annual tax upon
10    all the taxable property within the  district  sufficient  to
11    pay the principal thereof at maturity and to pay the interest
12    thereon  as  it  falls due, which tax shall be in addition to
13    the  maximum  amount  of  all  other  taxes,  either  general
14    educational; transportation; operations and  maintenance;  or
15    fire  prevention  and  safety  fund  taxes,  now or hereafter
16    authorized and in addition to any limitations upon  the  levy
17    of taxes as provided by Sections 17-2 through 17-9. The bonds
18    may be issued redeemable at the option of the school board of
19    the  district issuing them on any interest payment date on or
20    after 5 years from date of issue.
21        With respect to instruments  for  the  payment  of  money
22    issued  under  this  Section  either before, on, or after the
23    effective date of this amendatory Act  of  1989,  it  is  and
24    always  has  been  the  intention of the General Assembly (i)
25    that  the  Omnibus  Bond  Acts  are  and  always  have   been
26    supplementary   grants  of  power  to  issue  instruments  in
27    accordance with the Omnibus  Bond  Acts,  regardless  of  any
28    provision  of  this Act that may appear to be or to have been
29    more restrictive than those Acts, (ii) that the provisions of
30    this Section  are  not  a  limitation  on  the  supplementary
31    authority  granted  by  the Omnibus Bond Acts, and (iii) that
32    instruments   issued   under   this   Section   within    the
33    supplementary  authority granted by the Omnibus Bond Acts are
34    not invalid because of any provision of  this  Act  that  may
 
                            -239-    LRB093 04198 SJM 04242 b
 1    appear  to  be  or  to  have been more restrictive than those
 2    Acts.
 3    (Source: P.A. 87-984; 88-641, eff. 9-9-94.)

 4        (105 ILCS 5/20-3) (from Ch. 122, par. 20-3)
 5        Sec. 20-3. Tax levy.  For the purpose of providing moneys
 6    for a restricted uses working cash fund, the school board  of
 7    any  such school district may also levy annually upon all the
 8    taxable property of  their  district  a  tax,  known  as  the
 9    "working  cash  fund  tax,"  not to exceed 0.05% of value, as
10    equalized or assessed by the Department of Revenue. Provided,
11    that: (1) no such tax shall be levied if bonds are issued  in
12    amount  or  amounts  equal in the aggregate to the limitation
13    set forth in Section 20-2 for the creation  of  a  restricted
14    uses  working  cash fund; (2) no such tax shall be levied and
15    extended by a school district that  is  not  certified  as  a
16    financially  distressed  district under Section 19-1.5 if the
17    amount of the  tax  so  to  be  extended  will  increase  the
18    restricted uses working cash fund to a total amount exceeding
19    85%  of  the  taxes  last  extended  for  general educational
20    purposes  of  the  district  plus  85%  of  the  last   known
21    entitlement  of  such  district  to  taxes  as  by law now or
22    hereafter enacted or amended, imposed by the General Assembly
23    of the State of Illinois to replace revenue lost by units  of
24    local  government  and  school  districts  as a result of the
25    abolition of ad valorem personal property taxes, pursuant  to
26    Article  IX, Section 5(c) of the Constitution of the State of
27    Illinois; and (3) no such tax shall be levied or extended  by
28    a   school  district  that  is  certified  as  a  financially
29    distressed district under Section 19-1.5 if the amount of the
30    tax so to be  extended  will  increase  the  restricted  uses
31    working  cash  fund  to  a total amount exceeding 125% of the
32    taxes last extended for general educational purposes  of  the
33    district  plus  125%  of  the  last known entitlement of that
 
                            -240-    LRB093 04198 SJM 04242 b
 1    district to taxes that by law now  or  hereafter  enacted  or
 2    amended  are  imposed  by  the  General  Assembly  to replace
 3    revenue  lost  by  units  of  local  government  and   school
 4    districts as a result of the abolition of ad valorem personal
 5    property  taxes,  pursuant to Article IX, Section 5(c) of the
 6    Constitution of the State of Illinois.  The collection of the
 7    tax shall not be anticipated by the issuance of any  warrants
 8    drawn  against  it.  The  tax  shall be levied and collected,
 9    except as otherwise provided in this Section, in like  manner
10    as  the  general  taxes  of  the  district,  and  shall be in
11    addition to the maximum of all other  taxes,  either  general
12    educational;  transportation;  operations and maintenance; or
13    fire prevention and safety fund taxes, now or hereafter to be
14    levied for school purposes. It  may  be  levied  by  separate
15    resolution  by  the last Tuesday in September in each year or
16    it may be included in the certificate of tax levy filed under
17    Section 17-11.
18        Whenever 2 or more school districts  reorganize  pursuant
19    to   Article  11A  or  11B  of  this  Code  into  a  district
20    maintaining grades kindergarten through 12, the newly  formed
21    district  may levy a tax annually, for working cash purposes,
22    at a rate not to exceed 0.10% upon all the  taxable  property
23    of  the district at the value as equalized or assessed by the
24    Department of Revenue.
25    (Source: P.A. 87-984; 88-641, eff. 9-9-94.)

26        (105 ILCS 5/20-4) (from Ch. 122, par. 20-4)
27        Sec. 20-4.  Use and reimbursement of fund.  This  Section
28    shall not apply in any school district which does not operate
29    a restricted uses working cash fund.
30        Moneys  derived  from the issuance of bonds as authorized
31    by Section 20-2, or from any tax levied pursuant  to  Section
32    20-3,  shall  be used only for the purposes and in the manner
33    hereinafter  provided.  Moneys  in  the  fund  shall  not  be
 
                            -241-    LRB093 04198 SJM 04242 b
 1    regarded as current assets  available  for  school  purposes.
 2    The  school  board  may  appropriate moneys to the restricted
 3    uses working cash fund up to the maximum amount allowable  in
 4    the  fund,  and  the  restricted  uses  working cash fund may
 5    receive such  appropriations  and  any  other  contributions.
 6    Moneys  in  the fund shall not be used by the school board in
 7    any manner other than to provide moneys with  which  to  meet
 8    ordinary  and  necessary disbursements for salaries and other
 9    school purposes and may be transferred in whole or in part to
10    the  general  funds  or  both  of  the  school  district  and
11    disbursed therefrom in  anticipation  of  the  collection  of
12    taxes  lawfully  levied  for  any  or  all  purposes,  or  in
13    anticipation of such taxes as by law now or hereafter enacted
14    or  amended  are imposed by the General Assembly of the State
15    of Illinois  to  replace  revenue  lost  by  units  of  local
16    government  and school districts as a result of the abolition
17    of ad valorem personal property taxes,  pursuant  to  Article
18    IX,  Section  5(c)  of  the  Constitution  of  the  State  of
19    Illinois.   Moneys  so transferred to any other fund shall be
20    deemed to be transferred in anticipation of the collection of
21    that part of the taxes so levied or to be received  which  is
22    in  excess of the amount thereof required to pay any warrants
23    or notes and the interest thereon theretofore and  thereafter
24    issued  in  anticipation  of  the collection thereof and such
25    taxes when collected shall be applied to the payment  of  any
26    such  warrants and the interest thereon, the amount estimated
27    to be  required  to  satisfy  debt  service  and  pension  or
28    retirement  obligations,  as  set  forth in Section 12 of the
29    State Revenue Sharing Act and then to  the  reimbursement  of
30    such   restricted  uses  working  cash  fund  as  hereinafter
31    provided.
32        Upon receipt by the  school  district  of  any  taxes  in
33    anticipation   of   the  collection  whereof  moneys  of  the
34    restricted uses working cash fund have  been  so  transferred
 
                            -242-    LRB093 04198 SJM 04242 b
 1    for  disbursement,  the  fund shall immediately be reimbursed
 2    therefrom until the  full  amount  so  transferred  has  been
 3    retransferred  to  the fund. Unless the taxes so received and
 4    applied to the reimbursement of the  restricted uses  working
 5    cash  fund  prior  to  the  first  day  of  the  eighth month
 6    following the month in which due  and  unpaid  real  property
 7    taxes  begin  to  bear  interest  are  sufficient to effect a
 8    complete  reimbursement  of  such   fund   for   any   moneys
 9    transferred  therefrom  in  anticipation of the collection of
10    such taxes, the restricted uses working cash  fund  shall  be
11    reimbursed  for the amount of the deficiency therein from any
12    other revenues accruing to the general educational fund,  and
13    the  school  board  shall  make  provisions for the immediate
14    reimbursement of the amount of any  such  deficiency  in  its
15    next annual tax levy.
16    (Source: P.A. 87-984; 87-1168; 88-45.)

17        (105 ILCS 5/20-5) (from Ch. 122, par. 20-5)
18        Sec.  20-5.  Transfer  to  other fund. This Section shall
19    not apply in any school district which  does  not  operate  a
20    restricted uses working cash fund.
21        Moneys,  including interest earned from investment of the
22    restricted  uses  working  cash  fund  as  in  this   Section
23    provided,  shall  be  transferred  from  the  restricted uses
24    working cash fund to another fund of the district  only  upon
25    the  authority  of  the school board which shall from time to
26    time by separate resolution direct the  school  treasurer  to
27    make  transfers  of  such  sums  as  may  be required for the
28    purposes herein authorized.
29        The  resolution  shall  set  forth  (a)  the   taxes   in
30    anticipation  of  which  such transfer is to be made and from
31    which  the  restricted  uses  working  cash  fund  is  to  be
32    reimbursed; (b) the entire amount of taxes extended, or which
33    the school board estimates will be extended or received,  for
 
                            -243-    LRB093 04198 SJM 04242 b
 1    any  year in anticipation of the collection of all or part of
 2    which such transfer is to be made; (c) the  aggregate  amount
 3    of  warrants  or  notes theretofore issued in anticipation of
 4    the collection of such taxes  together  with  the  amount  of
 5    interest  accrued  and  which the school board estimates will
 6    accrue thereon; (d) the aggregate  amount  of  receipts  from
 7    taxes  imposed  to  replace  revenue  lost  by units of local
 8    government and school districts as a result of the  abolition
 9    of  ad  valorem  personal property taxes, pursuant to Article
10    IX,  Section  5(c)  of  the  Constitution  of  the  State  of
11    Illinois, which the corporate authorities  estimate  will  be
12    set aside for the payment of the proportionate amount of debt
13    service and pension or retirement obligations, as required by
14    Section  12  of  the  State  Revenue Sharing Act; and (e) the
15    aggregate amount of money theretofore  transferred  from  the
16    restricted  uses  working  cash  fund  to  the  other fund in
17    anticipation of the collection  of  such  taxes.  The  amount
18    which  any  such  resolution shall direct the treasurer so to
19    transfer, in anticipation of the collection of  taxes  levied
20    or  to  be received for any year, together with the aggregate
21    amount of such anticipation tax warrants or notes theretofore
22    drawn against such taxes and the amount of  interest  accrued
23    and  estimated  to accrue thereon and the aggregate amount of
24    such transfers to be made in anticipation of  the  collection
25    of  such  taxes  and  the  amount estimated to be required to
26    satisfy debt service and pension or  retirement  obligations,
27    as  set forth in Section 12 of the State Revenue Sharing Act,
28    shall not exceed 85% of the actual  or  estimated  amount  of
29    such  taxes  extended  or to be extended or to be received as
30    set forth in such resolution in the case of a school district
31    that is not certified as a  financially  distressed  district
32    under  Section  19-1.5  or  125%  of  the actual or estimated
33    amount of the taxes extended or  to  be  extended  or  to  be
34    received  as  set  forth  in  the resolution in the case of a
 
                            -244-    LRB093 04198 SJM 04242 b
 1    district  that  is  certified  as  a  financially  distressed
 2    district  under  Section  19-1.5.  At  any  time  moneys  are
 3    available in the restricted uses working cash fund they shall
 4    be transferred to the general educational fund and  disbursed
 5    for  the  payment of salaries and other school expenses so as
 6    to avoid, whenever possible, the issuance of anticipation tax
 7    warrants or notes.
 8        Moneys earned as interest  from  the  investment  of  the
 9    restricted  uses  working  cash fund, or any portion thereof,
10    may be transferred from the restricted uses working cash fund
11    to another fund of the district without  any  requirement  of
12    repayment  to the restricted uses working cash fund, upon the
13    authority  of  the  school  board  by   separate   resolution
14    directing  the  school  treasurer  to  make such transfer and
15    stating the purpose therefore as one herein authorized.
16    (Source: P.A. 87-970; 87-984; 87-1168; 88-9;  88-45;  88-641,
17    eff. 9-9-94)

18        (105 ILCS 5/20-6) (from Ch. 122, par. 20-6)
19        Sec.  20-6.  Willful  violation of law. Any member of the
20    school board of any school district to which this Article  is
21    applicable, or any other person holding any office, trust, or
22    employment  under  such school district who wilfully violates
23    any of the provisions of this Article shall be  guilty  of  a
24    business  offense  and fined not exceeding $10,000, and shall
25    forfeit his right to his  office,  trust  or  employment  and
26    shall  be  removed therefrom. Any such member or other person
27    shall be liable for any sum that may be  unlawfully  diverted
28    from the restricted uses working cash fund or otherwise used,
29    to be recovered by such school district or by any taxpayer in
30    the  name  and  for the benefit of such school district in an
31    appropriate civil action; provided that  the  taxpayer  shall
32    file  a  bond for all costs and be liable for all costs taxed
33    against the school district in such suit, and judgment  shall
 
                            -245-    LRB093 04198 SJM 04242 b
 1    be  rendered  accordingly. Nothing herein shall bar any other
 2    remedies.
 3    (Source: P.A. 79-1366.)

 4        (105 ILCS 5/20-7) (from Ch. 122, par. 20-7)
 5        Sec. 20-7. Resolution for issuance of bonds -  Submission
 6    to  voters - Ballot. No school district may issue bonds under
 7    this Article unless it  adopts  a  resolution  declaring  its
 8    intention to issue bonds for the purpose therein provided and
 9    directs  that  notice of such intention be published at least
10    once  in  a  newspaper  published  and   having   a   general
11    circulation in the district, if there be one, but if there is
12    no  newspaper  published  in such district then by publishing
13    such notice in a newspaper having a  general  circulation  in
14    the  district.   The notice shall set forth (1) the intention
15    of the district  to  issue  bonds  in  accordance  with  this
16    Article;  (2)  the  time within which a petition may be filed
17    requesting the submission of the  proposition  to  issue  the
18    bonds; (3) the specific number of voters required to sign the
19    petition;  and (4) the date of the prospective referendum. At
20    the time of  publication  of  the  notice  and  for  30  days
21    thereafter,  the  recording  officer  of  the  district shall
22    provide a petition form to any individual requesting one.  If
23    within 30 days after the publication a petition is filed with
24    the  recording  officer of the district, signed by the voters
25    of the district equal to 10% or more of the registered voters
26    of the district requesting  that  the  proposition  to  issue
27    bonds  as  authorized  by  this  Article  be submitted to the
28    voters thereof, then the district shall not be authorized  to
29    issue  such bonds until the proposition has been certified to
30    the proper election authorities and has been submitted to and
31    approved  by  a  majority  of  the  voters  voting   on   the
32    proposition  at  a  regular  scheduled election in accordance
33    with the general election law. If  no  such  petition  is  so
 
                            -246-    LRB093 04198 SJM 04242 b
 1    filed,  or  if  any  and all petitions filed are invalid, the
 2    district may issue the bonds. In addition to the requirements
 3    of the general election law the notice of the election  shall
 4    set  forth the intention of the district to issue bonds under
 5    this Article.  The proposition shall be in substantially  the
 6    following form:
 7                           OFFICIAL BALLOT
 8    -------------------------------------------------------------
 9        Shall the board of....
10    of School district number....           YES
11    County, Illinois, be authorized to
12    issue working cash bonds for a       ------------------------
13    restricted uses working cash
14    fund as provided for by Article 20      NO
15    of the School Code?
16    -------------------------------------------------------------
17    (Source: P.A. 87-767.)

18        (105 ILCS 5/20-10 new)
19        Sec.  20-10.  Nothing  in  this Article prevents a school
20    district from dividing its restricted uses fund into subfunds
21    for  the  separate  purposes  of  working  cash,   classified
22    benefits, and tort immunity.

23        (105 ILCS 5/35-5) (from Ch. 122, par. 35-5)
24        Sec.  35-5.  Powers.  The  Commission  possesses  all the
25    powers necessary and convenient  to  accomplish  the  objects
26    prescribed  by  this  Article  including the following, which
27    however, are not to be construed as  a  limitation  upon  the
28    general powers hereby conferred.
29        (a)  To  enter  into  contracts with regard to any matter
30    connected with any powers of the Commission.
31        (b)  To acquire by gift, purchase or  otherwise,  and  to
32    construct,  equip,  complete,  remodel  and  maintain  school
 
                            -247-    LRB093 04198 SJM 04242 b
 1    buildings  and equipment, and for that purpose to acquire and
 2    improve school  sites  by  gift,  purchase,  condemnation  or
 3    otherwise.
 4        (c)  To  execute  non-assignable leases of facilities and
 5    sites to school districts in Illinois for school purposes for
 6    periods of not to exceed one year renewable at the option  of
 7    the  school  district  from year to year, and in the event of
 8    nonpayment of the  rents  provided  in  such  leases  or  the
 9    termination  of  such  leases  to  execute  leases thereof to
10    others for any suitable purposes. The Commission  may  extend
11    the  time for paying the rent due or any portion thereof when
12    the inability of the district to pay is  due  to  failure  or
13    delays  in  the  collections  of  the  taxes  levied for such
14    purpose.
15        (d)  To convey such property to the appropriate authority
16    for the use and benefit of  the  lessee  school  district  in
17    which such property is located if and when the Commission has
18    been  reimbursed  out  of rentals or otherwise for all direct
19    costs pertaining thereto which  have  been  incurred  by  the
20    Commission,  including  acquisition  and  development  of the
21    site, acquisition of equipment, and design  and  construction
22    of  the building, collectively referred to in this Article as
23    the costs of the project.
24        (e)  To sell such  property  at  public  sale,  with  the
25    approval  of  the  Illinois Building Authority or other state
26    agency authorized to provide funds, if the lease  thereof  is
27    not  renewed  by  the  lessee district with power to sell the
28    moveables separately from the site and building.
29        (f)  To cause deeds and bills of  sale  authorized  under
30    this  Article  to  be  executed  on  behalf  of  the State of
31    Illinois by the Chairman and Secretary of the Commission.
32        (g)  To adopt all needful by-laws, rules and  regulations
33    for  the  acquisition,  management  and use of such sites and
34    buildings acquired for school purposes, consistent  with  the
 
                            -248-    LRB093 04198 SJM 04242 b
 1    objects and purposes of this Article.
 2        (h)  To  employ  or  contract  for  such  services as the
 3    Commission may deem necessary to carry out its duties.
 4        (i)  To  execute  leases  with  the   Illinois   Building
 5    Authority  or  other state agency authorized to provide funds
 6    for school sites, buildings and fixed equipment as needed  by
 7    school  districts qualifying under this Article, which leases
 8    shall be payable solely and only from appropriations made  by
 9    the   General  Assembly  from  time  to  time.  However,  the
10    allocation of the  amounts  declared  to  be  in  the  public
11    interest   by  any  General  Assembly  for  school  districts
12    qualifying under this Article shall be  made  by  the  School
13    Building Commission.
14        (j)  To  develop  a  system  of  documents  and  analyses
15    necessary  to  maintain the statutory cost limitations placed
16    on Commission projects, and for the optional  use  of  school
17    districts   in   general,   to   include  design,  materials,
18    components, construction techniques, contracts, criteria  and
19    prototype drawings and specifications.
20        (k)  To  acquire  by  gift, purchase or otherwise, and to
21    construct,  equip,  complete,  remodel  and  maintain  school
22    buildings and equipment, and for that purpose to acquire  and
23    improve  school  sites  by  gift,  purchase,  condemnation or
24    otherwise, when such facilities have  been  approved  by  the
25    Board of Vocational Education and Rehabilitation, hereinafter
26    referred to; and when the erection of the approved facilities
27    has been declared to be in the public interest by the General
28    Assembly.
29    (Source: P.A. 77-1994.)

30        (105 ILCS 5/35-7) (from Ch. 122, par. 35-7)
31        Sec.  35-7.  Qualifications.  No school district shall be
32    entitled to have a building acquired or  constructed  in  the
33    district by the Commission unless:
 
                            -249-    LRB093 04198 SJM 04242 b
 1        (a)  The  Commission  shall  determine  that the district
 2    will require, in addition to its present classrooms and those
 3    for  which  funds  have  been  provided  by   the   district,
 4    classrooms   for   at  least  110  pupils  in  average  daily
 5    attendance in grades K through 8, 110 pupils in average daily
 6    attendance in grades 9 through 12 and 200 pupils  in  average
 7    daily  attendance  in grades K through 12 at the beginning of
 8    the ensuing school fall term  and  that  the  need  for  such
 9    additional  classrooms  will  continue  through the 5 ensuing
10    school years. In determining the needs of a district  subject
11    to  Section  35-25 of this Act, the Commission shall consider
12    the factors therein involved.
13        (b)  It has either reduced its bonding power to less than
14    $5000 or will have done so in complying with  the  provisions
15    of this Article.
16        (c)  (Blank).  Its  school board has been duly authorized
17    to levy a special tax sufficient in  amount  to  provide  the
18    rent  under  Section  35-15  for  the  facilities  to  be  so
19    provided,  but  the Commission may approve an application for
20    the construction of a classroom in a district contingent upon
21    compliance with this provision  within  60  days  after  such
22    approval.
23    (Source: P.A. 77-2282.)

24        (105 ILCS 5/35-25) (from Ch. 122, par. 35-25)
25        Sec.  35-25.  The  power of the Commission to construct a
26    school building in the territory of a school district,  shall
27    not  be vitiated by reason of the fact that a County Board of
28    School Trustees has entered an order annexing all or part  of
29    the  district,  together  with  coterminous  non-high  school
30    territory,  to  a  school  district  or districts maintaining
31    grades K to 12, if the order by reason of appeal or otherwise
32    has not become final at the time  the  Commission  authorizes
33    the  construction  of  such building. However, in considering
 
                            -250-    LRB093 04198 SJM 04242 b
 1    the needs of such a  district  under  Section  35-6  of  this
 2    Article  and  whether  the district is entitled to a building
 3    under Section 35-7(a) of this Article, the  Commission  shall
 4    consider, in addition to the needs of the applicant district,
 5    the  needs  of the district to which it, or the portion of it
 6    in which the proposed building lies, will be annexed  if  the
 7    order  of  the County Board of School Trustees becomes final,
 8    and as enlarged by such annexation.  If  such  order  becomes
 9    final, the district to which such annexation is made shall be
10    subject  to  the  same  restrictions  as  to  future building
11    construction  or  enlargement  and  as  to  changes  in   its
12    boundaries as is provided in Sections 35-16 and 35-17 of this
13    Article  to  the  same extent as if it had been the applicant
14    for building aid and the building had been constructed in its
15    territory, shall be subject to all the terms  and  provisions
16    of  any  leases  entered into by the annexed district for the
17    rental of buildings constructed by the Commission, and  shall
18    be  authorized  to use and occupy such building and to levy a
19    tax throughout the annexing district in such  amount  as  has
20    been  authorized  by  the  voters  of  the  annexed  district
21    pursuant  to  an  election  held  under Section 35-22 of this
22    Article.
23    (Source: P.A. 77-2282.)

24        (105 ILCS 5/17-2.1 rep.)
25        (105 ILCS 5/17-2.2 rep.)
26        (105 ILCS 5/17-2.2a rep.)
27        (105 ILCS 5/17-2.2b rep.)
28        (105 ILCS 5/17-2.3 rep.)
29        (105 ILCS 5/17-2.4 rep.)
30        (105 ILCS 5/17-2.6 rep.)
31        (105 ILCS 5/17-2A rep.)
32        (105 ILCS 5/17-2B rep.)
33        (105 ILCS 5/17-3.1 rep.)
 
                            -251-    LRB093 04198 SJM 04242 b
 1        (105 ILCS 5/17-3.3 rep.)
 2        (105 ILCS 5/17-4 rep.)
 3        (105 ILCS 5/17-5 rep.)
 4        (105 ILCS 5/17-5.1 rep.)
 5        (105 ILCS 5/17-6.1 rep.)
 6        (105 ILCS 5/17-9.01 rep.)
 7        (105 ILCS 5/20-8 rep.)
 8        (105 ILCS 5/20-9 rep.)
 9        (105 ILCS 5/35-22 rep.)
10        (105 ILCS 5/35-23 rep.)
11        (105 ILCS 5/35-24 rep.)
12        (105 ILCS 5/35-26 rep.)
13        Section 25-15. The School Code is  amended  by  repealing
14    Sections  17-2.1,  17-2.2,  17-2.2a, 17-2.2b, 17-2.3, 17-2.4,
15    17-2.6, 17-2A, 17-2B, 17-3.1,  17-3.3,  17-4,  17-5,  17-5.1,
16    17-6.1, 17-9.01, 20-8, 20-9, 35-22, 35-23, 35-24, and 35-26.

17                             ARTICLE 90

18        Section  90-5.   The  State  Mandates  Act  is amended by
19    adding Section 8.27 as follows:

20        (30 ILCS 805/8.27 new)
21        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
22    and  8 of this Act, no reimbursement by the State is required
23    for  the  implementation  of  any  mandate  created  by  this
24    amendatory Act of the 93rd General Assembly.

25                             ARTICLE 99

26        Section 99-99.  Effective date.  This Act takes effect on
27    July 1, 2003, except that this Section and Section 5-10  take
28    effect upon becoming law.
 
                            -252-    LRB093 04198 SJM 04242 b
 1                                INDEX
 2               Statutes amended in order of appearance
 3    105 ILCS 5/18-8.05
 4    105 ILCS 235/15-10
 5    105 ILCS 235/15-15
 6    105 ILCS 235/15-21 new
 7    105 ILCS 235/15-25
 8    10 ILCS 5/28-2            from Ch. 46, par. 28-2
 9    105 ILCS 5/2-3.25d        from Ch. 122, par. 2-3.25d
10    105 ILCS 5/3-14           from Ch. 122, par. 3-14
11    105 ILCS 5/3-14.29 new
12    105 ILCS 5/7-1            from Ch. 122, par. 7-1
13    105 ILCS 5/7-2            from Ch. 122, par. 7-2
14    105 ILCS 5/7-4            from Ch. 122, par. 7-4
15    105 ILCS 5/7-6            from Ch. 122, par. 7-6
16    105 ILCS 5/7-9            from Ch. 122, par. 7-9
17    105 ILCS 5/11A-2          from Ch. 122, par. 11A-2
18    105 ILCS 5/11A-3          from Ch. 122, par. 11A-3
19    105 ILCS 5/11A-8          from Ch. 122, par. 11A-8
20    105 ILCS 5/11B-2          from Ch. 122, par. 11B-2
21    105 ILCS 5/18-8.2         from Ch. 122, par. 18-8.2
22    105 ILCS 5/18-8.3         from Ch. 122, par. 18-8.3
23    105 ILCS 5/18-8.5         from Ch. 122, par. 18-8.5
24    105 ILCS 5/18-8.6a new
25    105 ILCS 5/18-8.6b new
26    105 ILCS 5/7-7.5 rep.
27    105 ILCS 5/7-7.6 rep.
28    105 ILCS 5/7-7.7 rep.
29    105 ILCS 230/5-30
30    30 ILCS 105/5.595 new
31    30 ILCS 105/6z-59 new
32    35 ILCS 5/201             from Ch. 120, par. 2-201
33    35 ILCS 5/202.5 new
34    35 ILCS 5/203             from Ch. 120, par. 2-203
 
                            -253-    LRB093 04198 SJM 04242 b
 1    35 ILCS 5/804             from Ch. 120, par. 8-804
 2    35 ILCS 5/901             from Ch. 120, par. 9-901
 3    35 ILCS 200/18-178 new
 4    35 ILCS 200/18-255
 5    35 ILCS 200/20-15
 6    35 ILCS 200/21-30
 7    105 ILCS 5/1D-1
 8    105 ILCS 5/2-3.51.10 new
 9    105 ILCS 5/2-3.51.15 new
10    105 ILCS 5/2-3.51.20 new
11    105 ILCS 5/2-3.51.25 new
12    105 ILCS 5/2-3.51.30 new
13    105 ILCS 5/2-3.64         from Ch. 122, par. 2-3.64
14    105 ILCS 5/14-7.01        from Ch. 122, par. 14-7.01
15    105 ILCS 5/14-7.02        from Ch. 122, par. 14-7.02
16    105 ILCS 5/14-13.01       from Ch. 122, par. 14-13.01
17    105 ILCS 5/29-5           from Ch. 122, par. 29-5
18    105 ILCS 5/29-5a new
19    105 ILCS 5/2-3.51.5 rep.
20    40 ILCS 5/7-171           from Ch. 108 1/2, par. 7-171
21    40 ILCS 5/21-110          from Ch. 108 1/2, par. 21-110
22    40 ILCS 5/21-110.1        from Ch. 108 1/2, par. 21-110.1
23    105 ILCS 5/2-3.77         from Ch. 122, par. 2-3.77
24    105 ILCS 5/10-22.31       from Ch. 122, par. 10-22.31
25    105 ILCS 5/10-22.44       from Ch. 122, par. 10-22.44
26    105 ILCS 5/11A-15         from Ch. 122, par. 11A-15
27    105 ILCS 5/17-1.10 new
28    105 ILCS 5/17-1.15 new
29    105 ILCS 5/17-2           from Ch. 122, par. 17-2
30    105 ILCS 5/17-2.2c        from Ch. 122, par. 17-2.2c
31    105 ILCS 5/17-2.11        from Ch. 122, par. 17-2.11
32    105 ILCS 5/17-2C
33    105 ILCS 5/17-3           from Ch. 122, par. 17-3
34    105 ILCS 5/17-3.2         from Ch. 122, par. 17-3.2
 
                            -254-    LRB093 04198 SJM 04242 b
 1    105 ILCS 5/17-3.4         from Ch. 122, par. 17-3.4
 2    105 ILCS 5/17-7           from Ch. 122, par. 17-7
 3    105 ILCS 5/17-8           from Ch. 122, par. 17-8
 4    105 ILCS 5/17-9           from Ch. 122, par. 17-9
 5    105 ILCS 5/17-11          from Ch. 122, par. 17-11
 6    105 ILCS 5/17-12          from Ch. 122, par. 17-12
 7    105 ILCS 5/17-16          from Ch. 122, par. 17-16
 8    105 ILCS 5/19-30          from Ch. 122, par. 19-30
 9    105 ILCS 5/19-31          from Ch. 122, par. 19-31
10    105 ILCS 5/Art. 20 heading
11    105 ILCS 5/20-1           from Ch. 122, par. 20-1
12    105 ILCS 5/20-2           from Ch. 122, par. 20-2
13    105 ILCS 5/20-3           from Ch. 122, par. 20-3
14    105 ILCS 5/20-4           from Ch. 122, par. 20-4
15    105 ILCS 5/20-5           from Ch. 122, par. 20-5
16    105 ILCS 5/20-6           from Ch. 122, par. 20-6
17    105 ILCS 5/20-7           from Ch. 122, par. 20-7
18    105 ILCS 5/20-10 new
19    105 ILCS 5/35-5           from Ch. 122, par. 35-5
20    105 ILCS 5/35-7           from Ch. 122, par. 35-7
21    105 ILCS 5/35-25          from Ch. 122, par. 35-25
22    105 ILCS 5/17-2.1 rep.
23    105 ILCS 5/17-2.2 rep.
24    105 ILCS 5/17-2.2a rep.
25    105 ILCS 5/17-2.2b rep.
26    105 ILCS 5/17-2.3 rep.
27    105 ILCS 5/17-2.4 rep.
28    105 ILCS 5/17-2.6 rep.
29    105 ILCS 5/17-2A rep.
30    105 ILCS 5/17-2B rep.
31    105 ILCS 5/17-3.1 rep.
32    105 ILCS 5/17-3.3 rep.
33    105 ILCS 5/17-4 rep.
34    105 ILCS 5/17-5 rep.
 
                            -255-    LRB093 04198 SJM 04242 b
 1    105 ILCS 5/17-5.1 rep.
 2    105 ILCS 5/17-6.1 rep.
 3    105 ILCS 5/17-9.01 rep.
 4    105 ILCS 5/20-8 rep.
 5    105 ILCS 5/20-9 rep.
 6    105 ILCS 5/35-22 rep.
 7    105 ILCS 5/35-23 rep.
 8    105 ILCS 5/35-24 rep.
 9    105 ILCS 5/35-26 rep.
10    30 ILCS 805/8.27 new