100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2808

 

Introduced , by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Provides that the Act may be referred to as the Evidence-Based Funding for Student Success Act. Amends the Economic Development Area Tax Increment Allocation Act, State Finance Act, Property Tax Code, Innovation Development and Economy Act, County Economic Development Project Area Property Tax Allocation Act, County Economic Development Project Area Tax Increment Allocation Act of 1991, Illinois Municipal Code, Economic Development Project Area Tax Increment Allocation Act of 1995, School Code, and Educational Opportunity for Military Children Act. Provides that the State aid formula provisions of the School Code apply through the 2016-2017 school year. Provides for an evidence-based funding formula beginning with the 2017-2018 school year. Sets forth provisions concerning an adequacy target calculation, a local capacity calculation, a base funding minimum calculation, a percent of adequacy and final resources calculation, an evidence-based funding formula distribution system, State Superintendent of Education administration of funding and school district submission requirements, and a Professional Judgment Panel. Makes other changes. Effective immediately.


LRB100 11017 NHT 21256 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2808LRB100 11017 NHT 21256 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. This Act may be referred to as the
5Evidence-Based Funding for Student Success Act.
 
6    Section 5. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and
16certified the economic development project area, each year
17after the date of the certification by the county clerk of the
18"total initial equalized assessed value" until economic
19development project costs and all municipal obligations
20financing economic development project costs have been paid,
21the ad valorem taxes, if any, arising from the levies upon the
22taxable real property in the economic development project area

 

 

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1by taxing districts and tax rates determined in the manner
2provided in subsection (b) of Section 6 of this Act shall be
3divided as follows:
4    (1) That portion of the taxes levied upon each taxable lot,
5block, tract or parcel of real property which is attributable
6to the lower of the current equalized assessed value or the
7initial equalized assessed value of each such taxable lot,
8block, tract, or parcel of real property existing at the time
9tax increment allocation financing was adopted, shall be
10allocated to and when collected shall be paid by the county
11collector to the respective affected taxing districts in the
12manner required by law in the absence of the adoption of tax
13increment allocation financing.
14    (2) That portion, if any, of those taxes which is
15attributable to the increase in the current equalized assessed
16valuation of each taxable lot, block, tract, or parcel of real
17property in the economic development project area, over and
18above the initial equalized assessed value of each property
19existing at the time tax increment allocation financing was
20adopted, shall be allocated to and when collected shall be paid
21to the municipal treasurer, who shall deposit those taxes into
22a special fund called the special tax allocation fund of the
23municipality for the purpose of paying economic development
24project costs and obligations incurred in the payment thereof.
25    The municipality, by an ordinance adopting tax increment
26allocation financing, may pledge the funds in and to be

 

 

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1deposited in the special tax allocation fund for the payment of
2obligations issued under this Act and for the payment of
3economic development project costs. No part of the current
4equalized assessed valuation of each property in the economic
5development project area attributable to any increase above the
6total initial equalized assessed value, of such properties
7shall be used in calculating the general State school aid
8formula, provided for in Section 18-8 of the School Code, or
9the evidence-based funding formula, provided for in Section
1018-8.15 of the School Code, until such time as all economic
11development projects costs have been paid as provided for in
12this Section.
13    When the economic development project costs, including
14without limitation all municipal obligations financing
15economic development project costs incurred under this Act,
16have been paid, all surplus funds then remaining in the special
17tax allocation fund shall be distributed by being paid by the
18municipal treasurer to the county collector, who shall
19immediately thereafter pay those funds to the taxing districts
20having taxable property in the economic development project
21area in the same manner and proportion as the most recent
22distribution by the county collector to those taxing districts
23of real property taxes from real property in the economic
24development project area.
25    Upon the payment of all economic development project costs,
26retirement of obligations and the distribution of any excess

 

 

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1monies pursuant to this Section the municipality shall adopt an
2ordinance dissolving the special tax allocation fund for the
3economic development project area, terminating the economic
4development project area, and terminating the use of tax
5increment allocation financing for the economic development
6project area. Thereafter the rates of the taxing districts
7shall be extended and taxes levied, collected and distributed
8in the manner applicable in the absence of the adoption of tax
9increment allocation financing.
10    Nothing in this Section shall be construed as relieving
11property in economic development project areas from being
12assessed as provided in the Property Tax Code, or as relieving
13owners of that property from paying a uniform rate of taxes, as
14required by Section 4 of Article IX of the Illinois
15Constitution.
16(Source: P.A. 98-463, eff. 8-16-13.)
 
17    Section 10. The State Finance Act is amended by changing
18Section 13.2 as follows:
 
19    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
20    Sec. 13.2. Transfers among line item appropriations.
21    (a) Transfers among line item appropriations from the same
22treasury fund for the objects specified in this Section may be
23made in the manner provided in this Section when the balance
24remaining in one or more such line item appropriations is

 

 

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1insufficient for the purpose for which the appropriation was
2made.
3    (a-1) No transfers may be made from one agency to another
4agency, nor may transfers be made from one institution of
5higher education to another institution of higher education
6except as provided by subsection (a-4).
7    (a-2) Except as otherwise provided in this Section,
8transfers may be made only among the objects of expenditure
9enumerated in this Section, except that no funds may be
10transferred from any appropriation for personal services, from
11any appropriation for State contributions to the State
12Employees' Retirement System, from any separate appropriation
13for employee retirement contributions paid by the employer, nor
14from any appropriation for State contribution for employee
15group insurance. During State fiscal year 2005, an agency may
16transfer amounts among its appropriations within the same
17treasury fund for personal services, employee retirement
18contributions paid by employer, and State Contributions to
19retirement systems; notwithstanding and in addition to the
20transfers authorized in subsection (c) of this Section, the
21fiscal year 2005 transfers authorized in this sentence may be
22made in an amount not to exceed 2% of the aggregate amount
23appropriated to an agency within the same treasury fund. During
24State fiscal year 2007, the Departments of Children and Family
25Services, Corrections, Human Services, and Juvenile Justice
26may transfer amounts among their respective appropriations

 

 

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1within the same treasury fund for personal services, employee
2retirement contributions paid by employer, and State
3contributions to retirement systems. During State fiscal year
42010, the Department of Transportation may transfer amounts
5among their respective appropriations within the same treasury
6fund for personal services, employee retirement contributions
7paid by employer, and State contributions to retirement
8systems. During State fiscal years 2010 and 2014 only, an
9agency may transfer amounts among its respective
10appropriations within the same treasury fund for personal
11services, employee retirement contributions paid by employer,
12and State contributions to retirement systems.
13Notwithstanding, and in addition to, the transfers authorized
14in subsection (c) of this Section, these transfers may be made
15in an amount not to exceed 2% of the aggregate amount
16appropriated to an agency within the same treasury fund.
17    (a-2.5) During State fiscal year 2015 only, the State's
18Attorneys Appellate Prosecutor may transfer amounts among its
19respective appropriations contained in operational line items
20within the same treasury fund. Notwithstanding, and in addition
21to, the transfers authorized in subsection (c) of this Section,
22these transfers may be made in an amount not to exceed 4% of
23the aggregate amount appropriated to the State's Attorneys
24Appellate Prosecutor within the same treasury fund.
25    (a-3) Further, if an agency receives a separate
26appropriation for employee retirement contributions paid by

 

 

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1the employer, any transfer by that agency into an appropriation
2for personal services must be accompanied by a corresponding
3transfer into the appropriation for employee retirement
4contributions paid by the employer, in an amount sufficient to
5meet the employer share of the employee contributions required
6to be remitted to the retirement system.
7    (a-4) Long-Term Care Rebalancing. The Governor may
8designate amounts set aside for institutional services
9appropriated from the General Revenue Fund or any other State
10fund that receives monies for long-term care services to be
11transferred to all State agencies responsible for the
12administration of community-based long-term care programs,
13including, but not limited to, community-based long-term care
14programs administered by the Department of Healthcare and
15Family Services, the Department of Human Services, and the
16Department on Aging, provided that the Director of Healthcare
17and Family Services first certifies that the amounts being
18transferred are necessary for the purpose of assisting persons
19in or at risk of being in institutional care to transition to
20community-based settings, including the financial data needed
21to prove the need for the transfer of funds. The total amounts
22transferred shall not exceed 4% in total of the amounts
23appropriated from the General Revenue Fund or any other State
24fund that receives monies for long-term care services for each
25fiscal year. A notice of the fund transfer must be made to the
26General Assembly and posted at a minimum on the Department of

 

 

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1Healthcare and Family Services website, the Governor's Office
2of Management and Budget website, and any other website the
3Governor sees fit. These postings shall serve as notice to the
4General Assembly of the amounts to be transferred. Notice shall
5be given at least 30 days prior to transfer.
6    (b) In addition to the general transfer authority provided
7under subsection (c), the following agencies have the specific
8transfer authority granted in this subsection:
9    The Department of Healthcare and Family Services is
10authorized to make transfers representing savings attributable
11to not increasing grants due to the births of additional
12children from line items for payments of cash grants to line
13items for payments for employment and social services for the
14purposes outlined in subsection (f) of Section 4-2 of the
15Illinois Public Aid Code.
16    The Department of Children and Family Services is
17authorized to make transfers not exceeding 2% of the aggregate
18amount appropriated to it within the same treasury fund for the
19following line items among these same line items: Foster Home
20and Specialized Foster Care and Prevention, Institutions and
21Group Homes and Prevention, and Purchase of Adoption and
22Guardianship Services.
23    The Department on Aging is authorized to make transfers not
24exceeding 2% of the aggregate amount appropriated to it within
25the same treasury fund for the following Community Care Program
26line items among these same line items: purchase of services

 

 

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1covered by the Community Care Program and Comprehensive Case
2Coordination.
3    The State Treasurer is authorized to make transfers among
4line item appropriations from the Capital Litigation Trust
5Fund, with respect to costs incurred in fiscal years 2002 and
62003 only, when the balance remaining in one or more such line
7item appropriations is insufficient for the purpose for which
8the appropriation was made, provided that no such transfer may
9be made unless the amount transferred is no longer required for
10the purpose for which that appropriation was made.
11    The State Board of Education is authorized to make
12transfers from line item appropriations within the same
13treasury fund for General State Aid, and General State Aid -
14Hold Harmless, Evidence-Based Funding, provided that no such
15transfer may be made unless the amount transferred is no longer
16required for the purpose for which that appropriation was made,
17to the line item appropriation for Transitional Assistance when
18the balance remaining in such line item appropriation is
19insufficient for the purpose for which the appropriation was
20made.
21    The State Board of Education is authorized to make
22transfers between the following line item appropriations
23within the same treasury fund: Disabled Student
24Services/Materials (Section 14-13.01 of the School Code),
25Disabled Student Transportation Reimbursement (Section
2614-13.01 of the School Code), Disabled Student Tuition -

 

 

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1Private Tuition (Section 14-7.02 of the School Code),
2Extraordinary Special Education (Section 14-7.02b of the
3School Code), Reimbursement for Free Lunch/Breakfast Program,
4Summer School Payments (Section 18-4.3 of the School Code), and
5Transportation - Regular/Vocational Reimbursement (Section
629-5 of the School Code). Such transfers shall be made only
7when the balance remaining in one or more such line item
8appropriations is insufficient for the purpose for which the
9appropriation was made and provided that no such transfer may
10be made unless the amount transferred is no longer required for
11the purpose for which that appropriation was made.
12    The Department of Healthcare and Family Services is
13authorized to make transfers not exceeding 4% of the aggregate
14amount appropriated to it, within the same treasury fund, among
15the various line items appropriated for Medical Assistance.
16    (c) The sum of such transfers for an agency in a fiscal
17year shall not exceed 2% of the aggregate amount appropriated
18to it within the same treasury fund for the following objects:
19Personal Services; Extra Help; Student and Inmate
20Compensation; State Contributions to Retirement Systems; State
21Contributions to Social Security; State Contribution for
22Employee Group Insurance; Contractual Services; Travel;
23Commodities; Printing; Equipment; Electronic Data Processing;
24Operation of Automotive Equipment; Telecommunications
25Services; Travel and Allowance for Committed, Paroled and
26Discharged Prisoners; Library Books; Federal Matching Grants

 

 

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1for Student Loans; Refunds; Workers' Compensation,
2Occupational Disease, and Tort Claims; and, in appropriations
3to institutions of higher education, Awards and Grants.
4Notwithstanding the above, any amounts appropriated for
5payment of workers' compensation claims to an agency to which
6the authority to evaluate, administer and pay such claims has
7been delegated by the Department of Central Management Services
8may be transferred to any other expenditure object where such
9amounts exceed the amount necessary for the payment of such
10claims.
11    (c-1) Special provisions for State fiscal year 2003.
12Notwithstanding any other provision of this Section to the
13contrary, for State fiscal year 2003 only, transfers among line
14item appropriations to an agency from the same treasury fund
15may be made provided that the sum of such transfers for an
16agency in State fiscal year 2003 shall not exceed 3% of the
17aggregate amount appropriated to that State agency for State
18fiscal year 2003 for the following objects: personal services,
19except that no transfer may be approved which reduces the
20aggregate appropriations for personal services within an
21agency; extra help; student and inmate compensation; State
22contributions to retirement systems; State contributions to
23social security; State contributions for employee group
24insurance; contractual services; travel; commodities;
25printing; equipment; electronic data processing; operation of
26automotive equipment; telecommunications services; travel and

 

 

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1allowance for committed, paroled, and discharged prisoners;
2library books; federal matching grants for student loans;
3refunds; workers' compensation, occupational disease, and tort
4claims; and, in appropriations to institutions of higher
5education, awards and grants.
6    (c-2) Special provisions for State fiscal year 2005.
7Notwithstanding subsections (a), (a-2), and (c), for State
8fiscal year 2005 only, transfers may be made among any line
9item appropriations from the same or any other treasury fund
10for any objects or purposes, without limitation, when the
11balance remaining in one or more such line item appropriations
12is insufficient for the purpose for which the appropriation was
13made, provided that the sum of those transfers by a State
14agency shall not exceed 4% of the aggregate amount appropriated
15to that State agency for fiscal year 2005.
16    (c-3) Special provisions for State fiscal year 2015.
17Notwithstanding any other provision of this Section, for State
18fiscal year 2015, transfers among line item appropriations to a
19State agency from the same State treasury fund may be made for
20operational or lump sum expenses only, provided that the sum of
21such transfers for a State agency in State fiscal year 2015
22shall not exceed 4% of the aggregate amount appropriated to
23that State agency for operational or lump sum expenses for
24State fiscal year 2015. For the purpose of this subsection,
25"operational or lump sum expenses" includes the following
26objects: personal services; extra help; student and inmate

 

 

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1compensation; State contributions to retirement systems; State
2contributions to social security; State contributions for
3employee group insurance; contractual services; travel;
4commodities; printing; equipment; electronic data processing;
5operation of automotive equipment; telecommunications
6services; travel and allowance for committed, paroled, and
7discharged prisoners; library books; federal matching grants
8for student loans; refunds; workers' compensation,
9occupational disease, and tort claims; lump sum and other
10purposes; and lump sum operations. For the purpose of this
11subsection (c-3), "State agency" does not include the Attorney
12General, the Secretary of State, the Comptroller, the
13Treasurer, or the legislative or judicial branches.
14    (d) Transfers among appropriations made to agencies of the
15Legislative and Judicial departments and to the
16constitutionally elected officers in the Executive branch
17require the approval of the officer authorized in Section 10 of
18this Act to approve and certify vouchers. Transfers among
19appropriations made to the University of Illinois, Southern
20Illinois University, Chicago State University, Eastern
21Illinois University, Governors State University, Illinois
22State University, Northeastern Illinois University, Northern
23Illinois University, Western Illinois University, the Illinois
24Mathematics and Science Academy and the Board of Higher
25Education require the approval of the Board of Higher Education
26and the Governor. Transfers among appropriations to all other

 

 

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1agencies require the approval of the Governor.
2    The officer responsible for approval shall certify that the
3transfer is necessary to carry out the programs and purposes
4for which the appropriations were made by the General Assembly
5and shall transmit to the State Comptroller a certified copy of
6the approval which shall set forth the specific amounts
7transferred so that the Comptroller may change his records
8accordingly. The Comptroller shall furnish the Governor with
9information copies of all transfers approved for agencies of
10the Legislative and Judicial departments and transfers
11approved by the constitutionally elected officials of the
12Executive branch other than the Governor, showing the amounts
13transferred and indicating the dates such changes were entered
14on the Comptroller's records.
15    (e) The State Board of Education, in consultation with the
16State Comptroller, may transfer line item appropriations for
17General State Aid or Evidence-Based Funding between the Common
18School Fund and the Education Assistance Fund. With the advice
19and consent of the Governor's Office of Management and Budget,
20the State Board of Education, in consultation with the State
21Comptroller, may transfer line item appropriations between the
22General Revenue Fund and the Education Assistance Fund for the
23following programs:
24        (1) Disabled Student Personnel Reimbursement (Section
25    14-13.01 of the School Code);
26        (2) Disabled Student Transportation Reimbursement

 

 

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1    (subsection (b) of Section 14-13.01 of the School Code);
2        (3) Disabled Student Tuition - Private Tuition
3    (Section 14-7.02 of the School Code);
4        (4) Extraordinary Special Education (Section 14-7.02b
5    of the School Code);
6        (5) Reimbursement for Free Lunch/Breakfast Programs;
7        (6) Summer School Payments (Section 18-4.3 of the
8    School Code);
9        (7) Transportation - Regular/Vocational Reimbursement
10    (Section 29-5 of the School Code);
11        (8) Regular Education Reimbursement (Section 18-3 of
12    the School Code); and
13        (9) Special Education Reimbursement (Section 14-7.03
14    of the School Code).
15(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
16eff. 3-26-15.)
 
17    Section 15. The Property Tax Code is amended by changing
18Sections 18-200 and 18-249 as follows:
 
19    (35 ILCS 200/18-200)
20    Sec. 18-200. School Code. A school district's State aid
21shall not be reduced under the computation under subsections
225(a) through 5(h) of Part A of Section 18-8 of the School Code
23or under Section 18-8.15 of the School Code due to the
24operating tax rate falling from above the minimum requirement

 

 

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1of that Section of the School Code to below the minimum
2requirement of that Section of the School Code due to the
3operation of this Law.
4(Source: P.A. 87-17; 88-455.)
 
5    (35 ILCS 200/18-249)
6    Sec. 18-249. Miscellaneous provisions.
7    (a) Certification of new property. For the 1994 levy year,
8the chief county assessment officer shall certify to the county
9clerk, after all changes by the board of review or board of
10appeals, as the case may be, the assessed value of new property
11by taxing district for the 1994 levy year under rules
12promulgated by the Department.
13    (b) School Code. A school district's State aid shall not be
14reduced under the computation under subsections 5(a) through
155(h) of Part A of Section 18-8 of the School Code or under
16Section 18-8.15 of the School Code due to the operating tax
17rate falling from above the minimum requirement of that Section
18of the School Code to below the minimum requirement of that
19Section of the School Code due to the operation of this Law.
20    (c) Rules. The Department shall make and promulgate
21reasonable rules relating to the administration of the purposes
22and provisions of Sections 18-246 through 18-249 as may be
23necessary or appropriate.
24(Source: P.A. 89-1, eff. 2-12-95.)
 

 

 

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1    Section 20. The Innovation Development and Economy Act is
2amended by changing Section 33 as follows:
 
3    (50 ILCS 470/33)
4    Sec. 33. STAR Bonds School Improvement and Operations Trust
5Fund.
6    (a) The STAR Bonds School Improvement and Operations Trust
7Fund is created as a trust fund in the State treasury. Deposits
8into the Trust Fund shall be made as provided under this
9Section. Moneys in the Trust Fund shall be used by the
10Department of Revenue only for the purpose of making payments
11to school districts in educational service regions that include
12or are adjacent to the STAR bond district. Moneys in the Trust
13Fund are not subject to appropriation and shall be used solely
14as provided in this Section. All deposits into the Trust Fund
15shall be held in the Trust Fund by the State Treasurer as ex
16officio custodian separate and apart from all public moneys or
17funds of this State and shall be administered by the Department
18exclusively for the purposes set forth in this Section. All
19moneys in the Trust Fund shall be invested and reinvested by
20the State Treasurer. All interest accruing from these
21investments shall be deposited in the Trust Fund.
22    (b) Upon approval of a STAR bond district, the political
23subdivision shall immediately transmit to the county clerk of
24the county in which the district is located a certified copy of
25the ordinance creating the district, a legal description of the

 

 

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1district, a map of the district, identification of the year
2that the county clerk shall use for determining the total
3initial equalized assessed value of the district consistent
4with subsection (c), and a list of the parcel or tax
5identification number of each parcel of property included in
6the district.
7    (c) Upon approval of a STAR bond district, the county clerk
8immediately thereafter shall determine (i) the most recently
9ascertained equalized assessed value of each lot, block, tract,
10or parcel of real property within the STAR bond district, from
11which shall be deducted the homestead exemptions under Article
1215 of the Property Tax Code, which value shall be the initial
13equalized assessed value of each such piece of property, and
14(ii) the total equalized assessed value of all taxable real
15property within the district by adding together the most
16recently ascertained equalized assessed value of each taxable
17lot, block, tract, or parcel of real property within the
18district, from which shall be deducted the homestead exemptions
19under Article 15 of the Property Tax Code, and shall certify
20that amount as the total initial equalized assessed value of
21the taxable real property within the STAR bond district.
22    (d) In reference to any STAR bond district created within
23any political subdivision, and in respect to which the county
24clerk has certified the total initial equalized assessed value
25of the property in the area, the political subdivision may
26thereafter request the clerk in writing to adjust the initial

 

 

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1equalized value of all taxable real property within the STAR
2bond district by deducting therefrom the exemptions under
3Article 15 of the Property Tax Code applicable to each lot,
4block, tract, or parcel of real property within the STAR bond
5district. The county clerk shall immediately, after the written
6request to adjust the total initial equalized value is
7received, determine the total homestead exemptions in the STAR
8bond district as provided under Article 15 of the Property Tax
9Code by adding together the homestead exemptions provided by
10said Article on each lot, block, tract, or parcel of real
11property within the STAR bond district and then shall deduct
12the total of said exemptions from the total initial equalized
13assessed value. The county clerk shall then promptly certify
14that amount as the total initial equalized assessed value as
15adjusted of the taxable real property within the STAR bond
16district.
17    (e) The county clerk or other person authorized by law
18shall compute the tax rates for each taxing district with all
19or a portion of its equalized assessed value located in the
20STAR bond district. The rate per cent of tax determined shall
21be extended to the current equalized assessed value of all
22property in the district in the same manner as the rate per
23cent of tax is extended to all other taxable property in the
24taxing district.
25    (f) Beginning with the assessment year in which the first
26destination user in the first STAR bond project in a STAR bond

 

 

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1district makes its first retail sales and for each assessment
2year thereafter until final maturity of the last STAR bonds
3issued in the district, the county clerk or other person
4authorized by law shall determine the increase in equalized
5assessed value of all real property within the STAR bond
6district by subtracting the initial equalized assessed value of
7all property in the district certified under subsection (c)
8from the current equalized assessed value of all property in
9the district. Each year, the property taxes arising from the
10increase in equalized assessed value in the STAR bond district
11shall be determined for each taxing district and shall be
12certified to the county collector.
13    (g) Beginning with the year in which taxes are collected
14based on the assessment year in which the first destination
15user in the first STAR bond project in a STAR bond district
16makes its first retail sales and for each year thereafter until
17final maturity of the last STAR bonds issued in the district,
18the county collector shall, within 30 days after receipt of
19property taxes, transmit to the Department to be deposited into
20the STAR Bonds School Improvement and Operations Trust Fund 15%
21of property taxes attributable to the increase in equalized
22assessed value within the STAR bond district from each taxing
23district as certified in subsection (f).
24    (h) The Department shall pay to the regional superintendent
25of schools whose educational service region includes Franklin
26and Williamson Counties, for each year for which money is

 

 

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1remitted to the Department and paid into the STAR Bonds School
2Improvement and Operations Trust Fund, the money in the Fund as
3provided in this Section. The amount paid to each school
4district shall be allocated proportionately, based on each
5qualifying school district's fall enrollment for the
6then-current school year, such that the school district with
7the largest fall enrollment receives the largest proportionate
8share of money paid out of the Fund or by any other method or
9formula that the regional superintendent of schools deems fit,
10equitable, and in the public interest. The regional
11superintendent may allocate moneys to school districts that are
12outside of his or her educational service region or to other
13regional superintendents.
14    The Department shall determine the distributions under
15this Section using its best judgment and information. The
16Department shall be held harmless for the distributions made
17under this Section and all distributions shall be final.
18    (i) In any year that an assessment appeal is filed, the
19extension of taxes on any assessment so appealed shall not be
20delayed. In the case of an assessment that is altered, any
21taxes extended upon the unauthorized assessment or part thereof
22shall be abated, or, if already paid, shall be refunded with
23interest as provided in Section 23-20 of the Property Tax Code.
24In the case of an assessment appeal, the county collector shall
25notify the Department that an assessment appeal has been filed
26and the amount of the tax that would have been deposited in the

 

 

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1STAR Bonds School Improvement and Operations Trust Fund. The
2county collector shall hold that amount in a separate fund
3until the appeal process is final. After the appeal process is
4finalized, the county collector shall transmit to the
5Department the amount of tax that remains, if any, after all
6required refunds are made. The Department shall pay any amount
7deposited into the Trust Fund under this Section in the same
8proportion as determined for payments for that taxable year
9under subsection (h).
10    (j) In any year that ad valorem taxes are allocated to the
11STAR Bonds School Improvement and Operations Trust Fund, that
12allocation shall not reduce or otherwise impact the school aid
13provided to any school district under the general State school
14aid formula provided for in Section 18-8.05 of the School Code
15or the evidence-based funding formula provided for in Section
1618-8.15 of the School Code.
17(Source: P.A. 96-939, eff. 6-24-10.)
 
18    Section 25. The County Economic Development Project Area
19Property Tax Allocation Act is amended by changing Section 7 as
20follows:
 
21    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
22    Sec. 7. Creation of special tax allocation fund. If a
23county has adopted property tax allocation financing by
24ordinance for an economic development project area, the

 

 

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1Department has approved and certified the economic development
2project area, and the county clerk has thereafter certified the
3"total initial equalized value" of the taxable real property
4within such economic development project area in the manner
5provided in subsection (b) of Section 6 of this Act, each year
6after the date of the certification by the county clerk of the
7"initial equalized assessed value" until economic development
8project costs and all county obligations financing economic
9development project costs have been paid, the ad valorem taxes,
10if any, arising from the levies upon the taxable real property
11in the economic development project area by taxing districts
12and tax rates determined in the manner provided in subsection
13(b) of Section 6 of this Act shall be divided as follows:
14        (1) That portion of the taxes levied upon each taxable
15    lot, block, tract or parcel of real property which is
16    attributable to the lower of the current equalized assessed
17    value or the initial equalized assessed value of each such
18    taxable lot, block, tract, or parcel of real property
19    existing at the time property tax allocation financing was
20    adopted shall be allocated and when collected shall be paid
21    by the county collector to the respective affected taxing
22    districts in the manner required by the law in the absence
23    of the adoption of property tax allocation financing.
24        (2) That portion, if any, of those taxes which is
25    attributable to the increase in the current equalized
26    assessed valuation of each taxable lot, block, tract, or

 

 

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1    parcel of real property in the economic development project
2    are, over and above the initial equalized assessed value of
3    each property existing at the time property tax allocation
4    financing was adopted shall be allocated to and when
5    collected shall be paid to the county treasurer, who shall
6    deposit those taxes into a special fund called the special
7    tax allocation fund of the county for the purpose of paying
8    economic development project costs and obligations
9    incurred in the payment thereof.
10    The county, by an ordinance adopting property tax
11allocation financing, may pledge the funds in and to be
12deposited in the special tax allocation fund for the payment of
13obligations issued under this Act and for the payment of
14economic development project costs. No part of the current
15equalized assessed valuation of each property in the economic
16development project area attributable to any increase above the
17total initial equalized assessed value of such properties shall
18be used in calculating the general State school aid formula,
19provided for in Section 18-8 of the School Code, or the
20evidence-based funding formula, provided for in Section
2118-8.15 of the School Code, until such time as all economic
22development projects costs have been paid as provided for in
23this Section.
24    Whenever a county issues bonds for the purpose of financing
25economic development project costs, the county may provide by
26ordinance for the appointment of a trustee, which may be any

 

 

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1trust company within the State, and for the establishment of
2the funds or accounts to be maintained by such trustee as the
3county shall deem necessary to provide for the security and
4payment of the bonds. If the county provides for the
5appointment of a trustee, the trustee shall be considered the
6assignee of any payments assigned by the county pursuant to the
7ordinance and this Section. Any amounts paid to the trustee as
8assignee shall be deposited in the funds or accounts
9established pursuant to the trust agreement, and shall be held
10by the trustee in trust for the benefit of the holders of the
11bonds, and the holders shall have a lien on and a security
12interest in those bonds or accounts so long as the bonds remain
13outstanding and unpaid. Upon retirement of the bonds, the
14trustee shall pay over any excess amounts held to the county
15for deposit in the special tax allocation fund.
16    When the economic development project costs, including
17without limitation all county obligations financing economic
18development project costs incurred under this Act, have been
19paid, all surplus funds then remaining in the special tax
20allocation funds shall be distributed by being paid by the
21county treasurer to the county collector, who shall immediately
22thereafter pay those funds to the taxing districts having
23taxable property in the economic development project area in
24the same manner and proportion as the most recent distribution
25by the county collector to those taxing districts of real
26property taxes from real property in the economic development

 

 

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1project area.
2    Upon the payment of all economic development project costs,
3retirement of obligations and the distribution of any excess
4monies pursuant to this Section and not later than 23 years
5from the date of adoption of the ordinance adopting property
6tax allocation financing, the county shall adopt an ordinance
7dissolving the special tax allocation fund for the economic
8development project area and terminating the designation of the
9economic development project area as an economic development
10project area; however, in relation to one or more contiguous
11parcels not exceeding a total area of 120 acres within which an
12electric generating facility is intended to be constructed, and
13with respect to which the owner of that proposed electric
14generating facility has entered into a redevelopment agreement
15with Grundy County on or before July 25, 2017, the ordinance of
16the county required in this paragraph shall not dissolve the
17special tax allocation fund for the existing economic
18development project area and shall only terminate the
19designation of the economic development project area as to
20those portions of the economic development project area
21excluding the area covered by the redevelopment agreement
22between the owner of the proposed electric generating facility
23and Grundy County; the county shall adopt an ordinance
24dissolving the special tax allocation fund for the economic
25development project area and terminating the designation of the
26economic development project area as an economic development

 

 

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1project area with regard to the electric generating facility
2property not later than 35 years from the date of adoption of
3the ordinance adopting property tax allocation financing.
4Thereafter the rates of the taxing districts shall be extended
5and taxes levied, collected and distributed in the manner
6applicable in the absence of the adoption of property tax
7allocation financing.
8    Nothing in this Section shall be construed as relieving
9property in economic development project areas from being
10assessed as provided in the Property Tax Code or as relieving
11owners of that property from paying a uniform rate of taxes, as
12required by Section 4 of Article IX of the Illinois
13Constitution of 1970.
14(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
15    Section 30. The County Economic Development Project Area
16Tax Increment Allocation Act of 1991 is amended by changing
17Section 50 as follows:
 
18    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
19    Sec. 50. Special tax allocation fund.
20    (a) If a county clerk has certified the "total initial
21equalized assessed value" of the taxable real property within
22an economic development project area in the manner provided in
23Section 45, each year after the date of the certification by
24the county clerk of the "total initial equalized assessed

 

 

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1value", until economic development project costs and all county
2obligations financing economic development project costs have
3been paid, the ad valorem taxes, if any, arising from the
4levies upon the taxable real property in the economic
5development project area by taxing districts and tax rates
6determined in the manner provided in subsection (b) of Section
745 shall be divided as follows:
8        (1) That portion of the taxes levied upon each taxable
9    lot, block, tract, or parcel of real property that is
10    attributable to the lower of the current equalized assessed
11    value or the initial equalized assessed value of each
12    taxable lot, block, tract, or parcel of real property
13    existing at the time tax increment financing was adopted
14    shall be allocated to (and when collected shall be paid by
15    the county collector to) the respective affected taxing
16    districts in the manner required by law in the absence of
17    the adoption of tax increment allocation financing.
18        (2) That portion, if any, of the taxes that is
19    attributable to the increase in the current equalized
20    assessed valuation of each taxable lot, block, tract, or
21    parcel of real property in the economic development project
22    area, over and above the initial equalized assessed value
23    of each property existing at the time tax increment
24    financing was adopted, shall be allocated to (and when
25    collected shall be paid to) the county treasurer, who shall
26    deposit the taxes into a special fund (called the special

 

 

HB2808- 29 -LRB100 11017 NHT 21256 b

1    tax allocation fund of the county) for the purpose of
2    paying economic development project costs and obligations
3    incurred in the payment of those costs.
4    (b) The county, by an ordinance adopting tax increment
5allocation financing, may pledge the monies in and to be
6deposited into the special tax allocation fund for the payment
7of obligations issued under this Act and for the payment of
8economic development project costs. No part of the current
9equalized assessed valuation of each property in the economic
10development project area attributable to any increase above the
11total initial equalized assessed value of those properties
12shall be used in calculating the general State school aid
13formula under Section 18-8 of the School Code or the
14evidence-based funding formula under Section 18-8.15 of the
15School Code until all economic development projects costs have
16been paid as provided for in this Section.
17    (c) When the economic development projects costs,
18including without limitation all county obligations financing
19economic development project costs incurred under this Act,
20have been paid, all surplus monies then remaining in the
21special tax allocation fund shall be distributed by being paid
22by the county treasurer to the county collector, who shall
23immediately pay the monies to the taxing districts having
24taxable property in the economic development project area in
25the same manner and proportion as the most recent distribution
26by the county collector to those taxing districts of real

 

 

HB2808- 30 -LRB100 11017 NHT 21256 b

1property taxes from real property in the economic development
2project area.
3    (d) Upon the payment of all economic development project
4costs, retirement of obligations, and distribution of any
5excess monies under this Section, the county shall adopt an
6ordinance dissolving the special tax allocation fund for the
7economic development project area and terminating the
8designation of the economic development project area as an
9economic development project area. Thereafter, the rates of the
10taxing districts shall be extended and taxes shall be levied,
11collected, and distributed in the manner applicable in the
12absence of the adoption of tax increment allocation financing.
13    (e) Nothing in this Section shall be construed as relieving
14property in the economic development project areas from being
15assessed as provided in the Property Tax Code or as relieving
16owners of that property from paying a uniform rate of taxes as
17required by Section 4 of Article IX of the Illinois
18Constitution.
19(Source: P.A. 98-463, eff. 8-16-13.)
 
20    Section 35. The Illinois Municipal Code is amended by
21changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
22follows:
 
23    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
24    Sec. 11-74.4-3. Definitions. The following terms, wherever

 

 

HB2808- 31 -LRB100 11017 NHT 21256 b

1used or referred to in this Division 74.4 shall have the
2following respective meanings, unless in any case a different
3meaning clearly appears from the context.
4    (a) For any redevelopment project area that has been
5designated pursuant to this Section by an ordinance adopted
6prior to November 1, 1999 (the effective date of Public Act
791-478), "blighted area" shall have the meaning set forth in
8this Section prior to that date.
9    On and after November 1, 1999, "blighted area" means any
10improved or vacant area within the boundaries of a
11redevelopment project area located within the territorial
12limits of the municipality where:
13        (1) If improved, industrial, commercial, and
14    residential buildings or improvements are detrimental to
15    the public safety, health, or welfare because of a
16    combination of 5 or more of the following factors, each of
17    which is (i) present, with that presence documented, to a
18    meaningful extent so that a municipality may reasonably
19    find that the factor is clearly present within the intent
20    of the Act and (ii) reasonably distributed throughout the
21    improved part of the redevelopment project area:
22            (A) Dilapidation. An advanced state of disrepair
23        or neglect of necessary repairs to the primary
24        structural components of buildings or improvements in
25        such a combination that a documented building
26        condition analysis determines that major repair is

 

 

HB2808- 32 -LRB100 11017 NHT 21256 b

1        required or the defects are so serious and so extensive
2        that the buildings must be removed.
3            (B) Obsolescence. The condition or process of
4        falling into disuse. Structures have become ill-suited
5        for the original use.
6            (C) Deterioration. With respect to buildings,
7        defects including, but not limited to, major defects in
8        the secondary building components such as doors,
9        windows, porches, gutters and downspouts, and fascia.
10        With respect to surface improvements, that the
11        condition of roadways, alleys, curbs, gutters,
12        sidewalks, off-street parking, and surface storage
13        areas evidence deterioration, including, but not
14        limited to, surface cracking, crumbling, potholes,
15        depressions, loose paving material, and weeds
16        protruding through paved surfaces.
17            (D) Presence of structures below minimum code
18        standards. All structures that do not meet the
19        standards of zoning, subdivision, building, fire, and
20        other governmental codes applicable to property, but
21        not including housing and property maintenance codes.
22            (E) Illegal use of individual structures. The use
23        of structures in violation of applicable federal,
24        State, or local laws, exclusive of those applicable to
25        the presence of structures below minimum code
26        standards.

 

 

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1            (F) Excessive vacancies. The presence of buildings
2        that are unoccupied or under-utilized and that
3        represent an adverse influence on the area because of
4        the frequency, extent, or duration of the vacancies.
5            (G) Lack of ventilation, light, or sanitary
6        facilities. The absence of adequate ventilation for
7        light or air circulation in spaces or rooms without
8        windows, or that require the removal of dust, odor,
9        gas, smoke, or other noxious airborne materials.
10        Inadequate natural light and ventilation means the
11        absence of skylights or windows for interior spaces or
12        rooms and improper window sizes and amounts by room
13        area to window area ratios. Inadequate sanitary
14        facilities refers to the absence or inadequacy of
15        garbage storage and enclosure, bathroom facilities,
16        hot water and kitchens, and structural inadequacies
17        preventing ingress and egress to and from all rooms and
18        units within a building.
19            (H) Inadequate utilities. Underground and overhead
20        utilities such as storm sewers and storm drainage,
21        sanitary sewers, water lines, and gas, telephone, and
22        electrical services that are shown to be inadequate.
23        Inadequate utilities are those that are: (i) of
24        insufficient capacity to serve the uses in the
25        redevelopment project area, (ii) deteriorated,
26        antiquated, obsolete, or in disrepair, or (iii)

 

 

HB2808- 34 -LRB100 11017 NHT 21256 b

1        lacking within the redevelopment project area.
2            (I) Excessive land coverage and overcrowding of
3        structures and community facilities. The
4        over-intensive use of property and the crowding of
5        buildings and accessory facilities onto a site.
6        Examples of problem conditions warranting the
7        designation of an area as one exhibiting excessive land
8        coverage are: (i) the presence of buildings either
9        improperly situated on parcels or located on parcels of
10        inadequate size and shape in relation to present-day
11        standards of development for health and safety and (ii)
12        the presence of multiple buildings on a single parcel.
13        For there to be a finding of excessive land coverage,
14        these parcels must exhibit one or more of the following
15        conditions: insufficient provision for light and air
16        within or around buildings, increased threat of spread
17        of fire due to the close proximity of buildings, lack
18        of adequate or proper access to a public right-of-way,
19        lack of reasonably required off-street parking, or
20        inadequate provision for loading and service.
21            (J) Deleterious land use or layout. The existence
22        of incompatible land-use relationships, buildings
23        occupied by inappropriate mixed-uses, or uses
24        considered to be noxious, offensive, or unsuitable for
25        the surrounding area.
26            (K) Environmental clean-up. The proposed

 

 

HB2808- 35 -LRB100 11017 NHT 21256 b

1        redevelopment project area has incurred Illinois
2        Environmental Protection Agency or United States
3        Environmental Protection Agency remediation costs for,
4        or a study conducted by an independent consultant
5        recognized as having expertise in environmental
6        remediation has determined a need for, the clean-up of
7        hazardous waste, hazardous substances, or underground
8        storage tanks required by State or federal law,
9        provided that the remediation costs constitute a
10        material impediment to the development or
11        redevelopment of the redevelopment project area.
12            (L) Lack of community planning. The proposed
13        redevelopment project area was developed prior to or
14        without the benefit or guidance of a community plan.
15        This means that the development occurred prior to the
16        adoption by the municipality of a comprehensive or
17        other community plan or that the plan was not followed
18        at the time of the area's development. This factor must
19        be documented by evidence of adverse or incompatible
20        land-use relationships, inadequate street layout,
21        improper subdivision, parcels of inadequate shape and
22        size to meet contemporary development standards, or
23        other evidence demonstrating an absence of effective
24        community planning.
25            (M) The total equalized assessed value of the
26        proposed redevelopment project area has declined for 3

 

 

HB2808- 36 -LRB100 11017 NHT 21256 b

1        of the last 5 calendar years prior to the year in which
2        the redevelopment project area is designated or is
3        increasing at an annual rate that is less than the
4        balance of the municipality for 3 of the last 5
5        calendar years for which information is available or is
6        increasing at an annual rate that is less than the
7        Consumer Price Index for All Urban Consumers published
8        by the United States Department of Labor or successor
9        agency for 3 of the last 5 calendar years prior to the
10        year in which the redevelopment project area is
11        designated.
12        (2) If vacant, the sound growth of the redevelopment
13    project area is impaired by a combination of 2 or more of
14    the following factors, each of which is (i) present, with
15    that presence documented, to a meaningful extent so that a
16    municipality may reasonably find that the factor is clearly
17    present within the intent of the Act and (ii) reasonably
18    distributed throughout the vacant part of the
19    redevelopment project area to which it pertains:
20            (A) Obsolete platting of vacant land that results
21        in parcels of limited or narrow size or configurations
22        of parcels of irregular size or shape that would be
23        difficult to develop on a planned basis and in a manner
24        compatible with contemporary standards and
25        requirements, or platting that failed to create
26        rights-of-ways for streets or alleys or that created

 

 

HB2808- 37 -LRB100 11017 NHT 21256 b

1        inadequate right-of-way widths for streets, alleys, or
2        other public rights-of-way or that omitted easements
3        for public utilities.
4            (B) Diversity of ownership of parcels of vacant
5        land sufficient in number to retard or impede the
6        ability to assemble the land for development.
7            (C) Tax and special assessment delinquencies exist
8        or the property has been the subject of tax sales under
9        the Property Tax Code within the last 5 years.
10            (D) Deterioration of structures or site
11        improvements in neighboring areas adjacent to the
12        vacant land.
13            (E) The area has incurred Illinois Environmental
14        Protection Agency or United States Environmental
15        Protection Agency remediation costs for, or a study
16        conducted by an independent consultant recognized as
17        having expertise in environmental remediation has
18        determined a need for, the clean-up of hazardous waste,
19        hazardous substances, or underground storage tanks
20        required by State or federal law, provided that the
21        remediation costs constitute a material impediment to
22        the development or redevelopment of the redevelopment
23        project area.
24            (F) The total equalized assessed value of the
25        proposed redevelopment project area has declined for 3
26        of the last 5 calendar years prior to the year in which

 

 

HB2808- 38 -LRB100 11017 NHT 21256 b

1        the redevelopment project area is designated or is
2        increasing at an annual rate that is less than the
3        balance of the municipality for 3 of the last 5
4        calendar years for which information is available or is
5        increasing at an annual rate that is less than the
6        Consumer Price Index for All Urban Consumers published
7        by the United States Department of Labor or successor
8        agency for 3 of the last 5 calendar years prior to the
9        year in which the redevelopment project area is
10        designated.
11        (3) If vacant, the sound growth of the redevelopment
12    project area is impaired by one of the following factors
13    that (i) is present, with that presence documented, to a
14    meaningful extent so that a municipality may reasonably
15    find that the factor is clearly present within the intent
16    of the Act and (ii) is reasonably distributed throughout
17    the vacant part of the redevelopment project area to which
18    it pertains:
19            (A) The area consists of one or more unused
20        quarries, mines, or strip mine ponds.
21            (B) The area consists of unused rail yards, rail
22        tracks, or railroad rights-of-way.
23            (C) The area, prior to its designation, is subject
24        to (i) chronic flooding that adversely impacts on real
25        property in the area as certified by a registered
26        professional engineer or appropriate regulatory agency

 

 

HB2808- 39 -LRB100 11017 NHT 21256 b

1        or (ii) surface water that discharges from all or a
2        part of the area and contributes to flooding within the
3        same watershed, but only if the redevelopment project
4        provides for facilities or improvements to contribute
5        to the alleviation of all or part of the flooding.
6            (D) The area consists of an unused or illegal
7        disposal site containing earth, stone, building
8        debris, or similar materials that were removed from
9        construction, demolition, excavation, or dredge sites.
10            (E) Prior to November 1, 1999, the area is not less
11        than 50 nor more than 100 acres and 75% of which is
12        vacant (notwithstanding that the area has been used for
13        commercial agricultural purposes within 5 years prior
14        to the designation of the redevelopment project area),
15        and the area meets at least one of the factors itemized
16        in paragraph (1) of this subsection, the area has been
17        designated as a town or village center by ordinance or
18        comprehensive plan adopted prior to January 1, 1982,
19        and the area has not been developed for that designated
20        purpose.
21            (F) The area qualified as a blighted improved area
22        immediately prior to becoming vacant, unless there has
23        been substantial private investment in the immediately
24        surrounding area.
25    (b) For any redevelopment project area that has been
26designated pursuant to this Section by an ordinance adopted

 

 

HB2808- 40 -LRB100 11017 NHT 21256 b

1prior to November 1, 1999 (the effective date of Public Act
291-478), "conservation area" shall have the meaning set forth
3in this Section prior to that date.
4    On and after November 1, 1999, "conservation area" means
5any improved area within the boundaries of a redevelopment
6project area located within the territorial limits of the
7municipality in which 50% or more of the structures in the area
8have an age of 35 years or more. Such an area is not yet a
9blighted area but because of a combination of 3 or more of the
10following factors is detrimental to the public safety, health,
11morals or welfare and such an area may become a blighted area:
12        (1) Dilapidation. An advanced state of disrepair or
13    neglect of necessary repairs to the primary structural
14    components of buildings or improvements in such a
15    combination that a documented building condition analysis
16    determines that major repair is required or the defects are
17    so serious and so extensive that the buildings must be
18    removed.
19        (2) Obsolescence. The condition or process of falling
20    into disuse. Structures have become ill-suited for the
21    original use.
22        (3) Deterioration. With respect to buildings, defects
23    including, but not limited to, major defects in the
24    secondary building components such as doors, windows,
25    porches, gutters and downspouts, and fascia. With respect
26    to surface improvements, that the condition of roadways,

 

 

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1    alleys, curbs, gutters, sidewalks, off-street parking, and
2    surface storage areas evidence deterioration, including,
3    but not limited to, surface cracking, crumbling, potholes,
4    depressions, loose paving material, and weeds protruding
5    through paved surfaces.
6        (4) Presence of structures below minimum code
7    standards. All structures that do not meet the standards of
8    zoning, subdivision, building, fire, and other
9    governmental codes applicable to property, but not
10    including housing and property maintenance codes.
11        (5) Illegal use of individual structures. The use of
12    structures in violation of applicable federal, State, or
13    local laws, exclusive of those applicable to the presence
14    of structures below minimum code standards.
15        (6) Excessive vacancies. The presence of buildings
16    that are unoccupied or under-utilized and that represent an
17    adverse influence on the area because of the frequency,
18    extent, or duration of the vacancies.
19        (7) Lack of ventilation, light, or sanitary
20    facilities. The absence of adequate ventilation for light
21    or air circulation in spaces or rooms without windows, or
22    that require the removal of dust, odor, gas, smoke, or
23    other noxious airborne materials. Inadequate natural light
24    and ventilation means the absence or inadequacy of
25    skylights or windows for interior spaces or rooms and
26    improper window sizes and amounts by room area to window

 

 

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1    area ratios. Inadequate sanitary facilities refers to the
2    absence or inadequacy of garbage storage and enclosure,
3    bathroom facilities, hot water and kitchens, and
4    structural inadequacies preventing ingress and egress to
5    and from all rooms and units within a building.
6        (8) Inadequate utilities. Underground and overhead
7    utilities such as storm sewers and storm drainage, sanitary
8    sewers, water lines, and gas, telephone, and electrical
9    services that are shown to be inadequate. Inadequate
10    utilities are those that are: (i) of insufficient capacity
11    to serve the uses in the redevelopment project area, (ii)
12    deteriorated, antiquated, obsolete, or in disrepair, or
13    (iii) lacking within the redevelopment project area.
14        (9) Excessive land coverage and overcrowding of
15    structures and community facilities. The over-intensive
16    use of property and the crowding of buildings and accessory
17    facilities onto a site. Examples of problem conditions
18    warranting the designation of an area as one exhibiting
19    excessive land coverage are: the presence of buildings
20    either improperly situated on parcels or located on parcels
21    of inadequate size and shape in relation to present-day
22    standards of development for health and safety and the
23    presence of multiple buildings on a single parcel. For
24    there to be a finding of excessive land coverage, these
25    parcels must exhibit one or more of the following
26    conditions: insufficient provision for light and air

 

 

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1    within or around buildings, increased threat of spread of
2    fire due to the close proximity of buildings, lack of
3    adequate or proper access to a public right-of-way, lack of
4    reasonably required off-street parking, or inadequate
5    provision for loading and service.
6        (10) Deleterious land use or layout. The existence of
7    incompatible land-use relationships, buildings occupied by
8    inappropriate mixed-uses, or uses considered to be
9    noxious, offensive, or unsuitable for the surrounding
10    area.
11        (11) Lack of community planning. The proposed
12    redevelopment project area was developed prior to or
13    without the benefit or guidance of a community plan. This
14    means that the development occurred prior to the adoption
15    by the municipality of a comprehensive or other community
16    plan or that the plan was not followed at the time of the
17    area's development. This factor must be documented by
18    evidence of adverse or incompatible land-use
19    relationships, inadequate street layout, improper
20    subdivision, parcels of inadequate shape and size to meet
21    contemporary development standards, or other evidence
22    demonstrating an absence of effective community planning.
23        (12) The area has incurred Illinois Environmental
24    Protection Agency or United States Environmental
25    Protection Agency remediation costs for, or a study
26    conducted by an independent consultant recognized as

 

 

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1    having expertise in environmental remediation has
2    determined a need for, the clean-up of hazardous waste,
3    hazardous substances, or underground storage tanks
4    required by State or federal law, provided that the
5    remediation costs constitute a material impediment to the
6    development or redevelopment of the redevelopment project
7    area.
8        (13) The total equalized assessed value of the proposed
9    redevelopment project area has declined for 3 of the last 5
10    calendar years for which information is available or is
11    increasing at an annual rate that is less than the balance
12    of the municipality for 3 of the last 5 calendar years for
13    which information is available or is increasing at an
14    annual rate that is less than the Consumer Price Index for
15    All Urban Consumers published by the United States
16    Department of Labor or successor agency for 3 of the last 5
17    calendar years for which information is available.
18    (c) "Industrial park" means an area in a blighted or
19conservation area suitable for use by any manufacturing,
20industrial, research or transportation enterprise, of
21facilities to include but not be limited to factories, mills,
22processing plants, assembly plants, packing plants,
23fabricating plants, industrial distribution centers,
24warehouses, repair overhaul or service facilities, freight
25terminals, research facilities, test facilities or railroad
26facilities.

 

 

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1    (d) "Industrial park conservation area" means an area
2within the boundaries of a redevelopment project area located
3within the territorial limits of a municipality that is a labor
4surplus municipality or within 1 1/2 miles of the territorial
5limits of a municipality that is a labor surplus municipality
6if the area is annexed to the municipality; which area is zoned
7as industrial no later than at the time the municipality by
8ordinance designates the redevelopment project area, and which
9area includes both vacant land suitable for use as an
10industrial park and a blighted area or conservation area
11contiguous to such vacant land.
12    (e) "Labor surplus municipality" means a municipality in
13which, at any time during the 6 months before the municipality
14by ordinance designates an industrial park conservation area,
15the unemployment rate was over 6% and was also 100% or more of
16the national average unemployment rate for that same time as
17published in the United States Department of Labor Bureau of
18Labor Statistics publication entitled "The Employment
19Situation" or its successor publication. For the purpose of
20this subsection, if unemployment rate statistics for the
21municipality are not available, the unemployment rate in the
22municipality shall be deemed to be the same as the unemployment
23rate in the principal county in which the municipality is
24located.
25    (f) "Municipality" shall mean a city, village,
26incorporated town, or a township that is located in the

 

 

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1unincorporated portion of a county with 3 million or more
2inhabitants, if the county adopted an ordinance that approved
3the township's redevelopment plan.
4    (g) "Initial Sales Tax Amounts" means the amount of taxes
5paid under the Retailers' Occupation Tax Act, Use Tax Act,
6Service Use Tax Act, the Service Occupation Tax Act, the
7Municipal Retailers' Occupation Tax Act, and the Municipal
8Service Occupation Tax Act by retailers and servicemen on
9transactions at places located in a State Sales Tax Boundary
10during the calendar year 1985.
11    (g-1) "Revised Initial Sales Tax Amounts" means the amount
12of taxes paid under the Retailers' Occupation Tax Act, Use Tax
13Act, Service Use Tax Act, the Service Occupation Tax Act, the
14Municipal Retailers' Occupation Tax Act, and the Municipal
15Service Occupation Tax Act by retailers and servicemen on
16transactions at places located within the State Sales Tax
17Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
18    (h) "Municipal Sales Tax Increment" means an amount equal
19to the increase in the aggregate amount of taxes paid to a
20municipality from the Local Government Tax Fund arising from
21sales by retailers and servicemen within the redevelopment
22project area or State Sales Tax Boundary, as the case may be,
23for as long as the redevelopment project area or State Sales
24Tax Boundary, as the case may be, exist over and above the
25aggregate amount of taxes as certified by the Illinois
26Department of Revenue and paid under the Municipal Retailers'

 

 

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1Occupation Tax Act and the Municipal Service Occupation Tax Act
2by retailers and servicemen, on transactions at places of
3business located in the redevelopment project area or State
4Sales Tax Boundary, as the case may be, during the base year
5which shall be the calendar year immediately prior to the year
6in which the municipality adopted tax increment allocation
7financing. For purposes of computing the aggregate amount of
8such taxes for base years occurring prior to 1985, the
9Department of Revenue shall determine the Initial Sales Tax
10Amounts for such taxes and deduct therefrom an amount equal to
114% of the aggregate amount of taxes per year for each year the
12base year is prior to 1985, but not to exceed a total deduction
13of 12%. The amount so determined shall be known as the
14"Adjusted Initial Sales Tax Amounts". For purposes of
15determining the Municipal Sales Tax Increment, the Department
16of Revenue shall for each period subtract from the amount paid
17to the municipality from the Local Government Tax Fund arising
18from sales by retailers and servicemen on transactions located
19in the redevelopment project area or the State Sales Tax
20Boundary, as the case may be, the certified Initial Sales Tax
21Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
22Initial Sales Tax Amounts for the Municipal Retailers'
23Occupation Tax Act and the Municipal Service Occupation Tax
24Act. For the State Fiscal Year 1989, this calculation shall be
25made by utilizing the calendar year 1987 to determine the tax
26amounts received. For the State Fiscal Year 1990, this

 

 

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1calculation shall be made by utilizing the period from January
21, 1988, until September 30, 1988, to determine the tax amounts
3received from retailers and servicemen pursuant to the
4Municipal Retailers' Occupation Tax and the Municipal Service
5Occupation Tax Act, which shall have deducted therefrom
6nine-twelfths of the certified Initial Sales Tax Amounts, the
7Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
8Tax Amounts as appropriate. For the State Fiscal Year 1991,
9this calculation shall be made by utilizing the period from
10October 1, 1988, to June 30, 1989, to determine the tax amounts
11received from retailers and servicemen pursuant to the
12Municipal Retailers' Occupation Tax and the Municipal Service
13Occupation Tax Act which shall have deducted therefrom
14nine-twelfths of the certified Initial Sales Tax Amounts,
15Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
16Tax Amounts as appropriate. For every State Fiscal Year
17thereafter, the applicable period shall be the 12 months
18beginning July 1 and ending June 30 to determine the tax
19amounts received which shall have deducted therefrom the
20certified Initial Sales Tax Amounts, the Adjusted Initial Sales
21Tax Amounts or the Revised Initial Sales Tax Amounts, as the
22case may be.
23    (i) "Net State Sales Tax Increment" means the sum of the
24following: (a) 80% of the first $100,000 of State Sales Tax
25Increment annually generated within a State Sales Tax Boundary;
26(b) 60% of the amount in excess of $100,000 but not exceeding

 

 

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1$500,000 of State Sales Tax Increment annually generated within
2a State Sales Tax Boundary; and (c) 40% of all amounts in
3excess of $500,000 of State Sales Tax Increment annually
4generated within a State Sales Tax Boundary. If, however, a
5municipality established a tax increment financing district in
6a county with a population in excess of 3,000,000 before
7January 1, 1986, and the municipality entered into a contract
8or issued bonds after January 1, 1986, but before December 31,
91986, to finance redevelopment project costs within a State
10Sales Tax Boundary, then the Net State Sales Tax Increment
11means, for the fiscal years beginning July 1, 1990, and July 1,
121991, 100% of the State Sales Tax Increment annually generated
13within a State Sales Tax Boundary; and notwithstanding any
14other provision of this Act, for those fiscal years the
15Department of Revenue shall distribute to those municipalities
16100% of their Net State Sales Tax Increment before any
17distribution to any other municipality and regardless of
18whether or not those other municipalities will receive 100% of
19their Net State Sales Tax Increment. For Fiscal Year 1999, and
20every year thereafter until the year 2007, for any municipality
21that has not entered into a contract or has not issued bonds
22prior to June 1, 1988 to finance redevelopment project costs
23within a State Sales Tax Boundary, the Net State Sales Tax
24Increment shall be calculated as follows: By multiplying the
25Net State Sales Tax Increment by 90% in the State Fiscal Year
261999; 80% in the State Fiscal Year 2000; 70% in the State

 

 

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1Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
2State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
3in the State Fiscal Year 2005; 20% in the State Fiscal Year
42006; and 10% in the State Fiscal Year 2007. No payment shall
5be made for State Fiscal Year 2008 and thereafter.
6    Municipalities that issued bonds in connection with a
7redevelopment project in a redevelopment project area within
8the State Sales Tax Boundary prior to July 29, 1991, or that
9entered into contracts in connection with a redevelopment
10project in a redevelopment project area before June 1, 1988,
11shall continue to receive their proportional share of the
12Illinois Tax Increment Fund distribution until the date on
13which the redevelopment project is completed or terminated. If,
14however, a municipality that issued bonds in connection with a
15redevelopment project in a redevelopment project area within
16the State Sales Tax Boundary prior to July 29, 1991 retires the
17bonds prior to June 30, 2007 or a municipality that entered
18into contracts in connection with a redevelopment project in a
19redevelopment project area before June 1, 1988 completes the
20contracts prior to June 30, 2007, then so long as the
21redevelopment project is not completed or is not terminated,
22the Net State Sales Tax Increment shall be calculated,
23beginning on the date on which the bonds are retired or the
24contracts are completed, as follows: By multiplying the Net
25State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2650% in the State Fiscal Year 2003; 40% in the State Fiscal Year

 

 

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12004; 30% in the State Fiscal Year 2005; 20% in the State
2Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
3payment shall be made for State Fiscal Year 2008 and
4thereafter. Refunding of any bonds issued prior to July 29,
51991, shall not alter the Net State Sales Tax Increment.
6    (j) "State Utility Tax Increment Amount" means an amount
7equal to the aggregate increase in State electric and gas tax
8charges imposed on owners and tenants, other than residential
9customers, of properties located within the redevelopment
10project area under Section 9-222 of the Public Utilities Act,
11over and above the aggregate of such charges as certified by
12the Department of Revenue and paid by owners and tenants, other
13than residential customers, of properties within the
14redevelopment project area during the base year, which shall be
15the calendar year immediately prior to the year of the adoption
16of the ordinance authorizing tax increment allocation
17financing.
18    (k) "Net State Utility Tax Increment" means the sum of the
19following: (a) 80% of the first $100,000 of State Utility Tax
20Increment annually generated by a redevelopment project area;
21(b) 60% of the amount in excess of $100,000 but not exceeding
22$500,000 of the State Utility Tax Increment annually generated
23by a redevelopment project area; and (c) 40% of all amounts in
24excess of $500,000 of State Utility Tax Increment annually
25generated by a redevelopment project area. For the State Fiscal
26Year 1999, and every year thereafter until the year 2007, for

 

 

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1any municipality that has not entered into a contract or has
2not issued bonds prior to June 1, 1988 to finance redevelopment
3project costs within a redevelopment project area, the Net
4State Utility Tax Increment shall be calculated as follows: By
5multiplying the Net State Utility Tax Increment by 90% in the
6State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
7in the State Fiscal Year 2001; 60% in the State Fiscal Year
82002; 50% in the State Fiscal Year 2003; 40% in the State
9Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
10State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
11No payment shall be made for the State Fiscal Year 2008 and
12thereafter.
13    Municipalities that issue bonds in connection with the
14redevelopment project during the period from June 1, 1988 until
153 years after the effective date of this Amendatory Act of 1988
16shall receive the Net State Utility Tax Increment, subject to
17appropriation, for 15 State Fiscal Years after the issuance of
18such bonds. For the 16th through the 20th State Fiscal Years
19after issuance of the bonds, the Net State Utility Tax
20Increment shall be calculated as follows: By multiplying the
21Net State Utility Tax Increment by 90% in year 16; 80% in year
2217; 70% in year 18; 60% in year 19; and 50% in year 20.
23Refunding of any bonds issued prior to June 1, 1988, shall not
24alter the revised Net State Utility Tax Increment payments set
25forth above.
26    (l) "Obligations" mean bonds, loans, debentures, notes,

 

 

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1special certificates or other evidence of indebtedness issued
2by the municipality to carry out a redevelopment project or to
3refund outstanding obligations.
4    (m) "Payment in lieu of taxes" means those estimated tax
5revenues from real property in a redevelopment project area
6derived from real property that has been acquired by a
7municipality which according to the redevelopment project or
8plan is to be used for a private use which taxing districts
9would have received had a municipality not acquired the real
10property and adopted tax increment allocation financing and
11which would result from levies made after the time of the
12adoption of tax increment allocation financing to the time the
13current equalized value of real property in the redevelopment
14project area exceeds the total initial equalized value of real
15property in said area.
16    (n) "Redevelopment plan" means the comprehensive program
17of the municipality for development or redevelopment intended
18by the payment of redevelopment project costs to reduce or
19eliminate those conditions the existence of which qualified the
20redevelopment project area as a "blighted area" or
21"conservation area" or combination thereof or "industrial park
22conservation area," and thereby to enhance the tax bases of the
23taxing districts which extend into the redevelopment project
24area, provided that, with respect to redevelopment project
25areas described in subsections (p-1) and (p-2), "redevelopment
26plan" means the comprehensive program of the affected

 

 

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1municipality for the development of qualifying transit
2facilities. On and after November 1, 1999 (the effective date
3of Public Act 91-478), no redevelopment plan may be approved or
4amended that includes the development of vacant land (i) with a
5golf course and related clubhouse and other facilities or (ii)
6designated by federal, State, county, or municipal government
7as public land for outdoor recreational activities or for
8nature preserves and used for that purpose within 5 years prior
9to the adoption of the redevelopment plan. For the purpose of
10this subsection, "recreational activities" is limited to mean
11camping and hunting. Each redevelopment plan shall set forth in
12writing the program to be undertaken to accomplish the
13objectives and shall include but not be limited to:
14        (A) an itemized list of estimated redevelopment
15    project costs;
16        (B) evidence indicating that the redevelopment project
17    area on the whole has not been subject to growth and
18    development through investment by private enterprise,
19    provided that such evidence shall not be required for any
20    redevelopment project area located within a transit
21    facility improvement area established pursuant to Section
22    11-74.4-3.3;
23        (C) an assessment of any financial impact of the
24    redevelopment project area on or any increased demand for
25    services from any taxing district affected by the plan and
26    any program to address such financial impact or increased

 

 

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1    demand;
2        (D) the sources of funds to pay costs;
3        (E) the nature and term of the obligations to be
4    issued;
5        (F) the most recent equalized assessed valuation of the
6    redevelopment project area;
7        (G) an estimate as to the equalized assessed valuation
8    after redevelopment and the general land uses to apply in
9    the redevelopment project area;
10        (H) a commitment to fair employment practices and an
11    affirmative action plan;
12        (I) if it concerns an industrial park conservation
13    area, the plan shall also include a general description of
14    any proposed developer, user and tenant of any property, a
15    description of the type, structure and general character of
16    the facilities to be developed, a description of the type,
17    class and number of new employees to be employed in the
18    operation of the facilities to be developed; and
19        (J) if property is to be annexed to the municipality,
20    the plan shall include the terms of the annexation
21    agreement.
22    The provisions of items (B) and (C) of this subsection (n)
23shall not apply to a municipality that before March 14, 1994
24(the effective date of Public Act 88-537) had fixed, either by
25its corporate authorities or by a commission designated under
26subsection (k) of Section 11-74.4-4, a time and place for a

 

 

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1public hearing as required by subsection (a) of Section
211-74.4-5. No redevelopment plan shall be adopted unless a
3municipality complies with all of the following requirements:
4        (1) The municipality finds that the redevelopment
5    project area on the whole has not been subject to growth
6    and development through investment by private enterprise
7    and would not reasonably be anticipated to be developed
8    without the adoption of the redevelopment plan, provided,
9    however, that such a finding shall not be required with
10    respect to any redevelopment project area located within a
11    transit facility improvement area established pursuant to
12    Section 11-74.4-3.3.
13        (2) The municipality finds that the redevelopment plan
14    and project conform to the comprehensive plan for the
15    development of the municipality as a whole, or, for
16    municipalities with a population of 100,000 or more,
17    regardless of when the redevelopment plan and project was
18    adopted, the redevelopment plan and project either: (i)
19    conforms to the strategic economic development or
20    redevelopment plan issued by the designated planning
21    authority of the municipality, or (ii) includes land uses
22    that have been approved by the planning commission of the
23    municipality.
24        (3) The redevelopment plan establishes the estimated
25    dates of completion of the redevelopment project and
26    retirement of obligations issued to finance redevelopment

 

 

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1    project costs. Those dates may not be later than the dates
2    set forth under Section 11-74.4-3.5.
3        A municipality may by municipal ordinance amend an
4    existing redevelopment plan to conform to this paragraph
5    (3) as amended by Public Act 91-478, which municipal
6    ordinance may be adopted without further hearing or notice
7    and without complying with the procedures provided in this
8    Act pertaining to an amendment to or the initial approval
9    of a redevelopment plan and project and designation of a
10    redevelopment project area.
11        (3.5) The municipality finds, in the case of an
12    industrial park conservation area, also that the
13    municipality is a labor surplus municipality and that the
14    implementation of the redevelopment plan will reduce
15    unemployment, create new jobs and by the provision of new
16    facilities enhance the tax base of the taxing districts
17    that extend into the redevelopment project area.
18        (4) If any incremental revenues are being utilized
19    under Section 8(a)(1) or 8(a)(2) of this Act in
20    redevelopment project areas approved by ordinance after
21    January 1, 1986, the municipality finds: (a) that the
22    redevelopment project area would not reasonably be
23    developed without the use of such incremental revenues, and
24    (b) that such incremental revenues will be exclusively
25    utilized for the development of the redevelopment project
26    area.

 

 

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1        (5) If: (a) the redevelopment plan will not result in
2    displacement of residents from 10 or more inhabited
3    residential units, and the municipality certifies in the
4    plan that such displacement will not result from the plan;
5    or (b) the redevelopment plan is for a redevelopment
6    project area located within a transit facility improvement
7    area established pursuant to Section 11-74.4-3.3, and the
8    applicable project is subject to the process for evaluation
9    of environmental effects under the National Environmental
10    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
11    housing impact study need not be performed. If, however,
12    the redevelopment plan would result in the displacement of
13    residents from 10 or more inhabited residential units, or
14    if the redevelopment project area contains 75 or more
15    inhabited residential units and no certification is made,
16    then the municipality shall prepare, as part of the
17    separate feasibility report required by subsection (a) of
18    Section 11-74.4-5, a housing impact study.
19        Part I of the housing impact study shall include (i)
20    data as to whether the residential units are single family
21    or multi-family units, (ii) the number and type of rooms
22    within the units, if that information is available, (iii)
23    whether the units are inhabited or uninhabited, as
24    determined not less than 45 days before the date that the
25    ordinance or resolution required by subsection (a) of
26    Section 11-74.4-5 is passed, and (iv) data as to the racial

 

 

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1    and ethnic composition of the residents in the inhabited
2    residential units. The data requirement as to the racial
3    and ethnic composition of the residents in the inhabited
4    residential units shall be deemed to be fully satisfied by
5    data from the most recent federal census.
6        Part II of the housing impact study shall identify the
7    inhabited residential units in the proposed redevelopment
8    project area that are to be or may be removed. If inhabited
9    residential units are to be removed, then the housing
10    impact study shall identify (i) the number and location of
11    those units that will or may be removed, (ii) the
12    municipality's plans for relocation assistance for those
13    residents in the proposed redevelopment project area whose
14    residences are to be removed, (iii) the availability of
15    replacement housing for those residents whose residences
16    are to be removed, and shall identify the type, location,
17    and cost of the housing, and (iv) the type and extent of
18    relocation assistance to be provided.
19        (6) On and after November 1, 1999, the housing impact
20    study required by paragraph (5) shall be incorporated in
21    the redevelopment plan for the redevelopment project area.
22        (7) On and after November 1, 1999, no redevelopment
23    plan shall be adopted, nor an existing plan amended, nor
24    shall residential housing that is occupied by households of
25    low-income and very low-income persons in currently
26    existing redevelopment project areas be removed after

 

 

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1    November 1, 1999 unless the redevelopment plan provides,
2    with respect to inhabited housing units that are to be
3    removed for households of low-income and very low-income
4    persons, affordable housing and relocation assistance not
5    less than that which would be provided under the federal
6    Uniform Relocation Assistance and Real Property
7    Acquisition Policies Act of 1970 and the regulations under
8    that Act, including the eligibility criteria. Affordable
9    housing may be either existing or newly constructed
10    housing. For purposes of this paragraph (7), "low-income
11    households", "very low-income households", and "affordable
12    housing" have the meanings set forth in the Illinois
13    Affordable Housing Act. The municipality shall make a good
14    faith effort to ensure that this affordable housing is
15    located in or near the redevelopment project area within
16    the municipality.
17        (8) On and after November 1, 1999, if, after the
18    adoption of the redevelopment plan for the redevelopment
19    project area, any municipality desires to amend its
20    redevelopment plan to remove more inhabited residential
21    units than specified in its original redevelopment plan,
22    that change shall be made in accordance with the procedures
23    in subsection (c) of Section 11-74.4-5.
24        (9) For redevelopment project areas designated prior
25    to November 1, 1999, the redevelopment plan may be amended
26    without further joint review board meeting or hearing,

 

 

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1    provided that the municipality shall give notice of any
2    such changes by mail to each affected taxing district and
3    registrant on the interested party registry, to authorize
4    the municipality to expend tax increment revenues for
5    redevelopment project costs defined by paragraphs (5) and
6    (7.5), subparagraphs (E) and (F) of paragraph (11), and
7    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
8    long as the changes do not increase the total estimated
9    redevelopment project costs set out in the redevelopment
10    plan by more than 5% after adjustment for inflation from
11    the date the plan was adopted.
12    (o) "Redevelopment project" means any public and private
13development project in furtherance of the objectives of a
14redevelopment plan. On and after November 1, 1999 (the
15effective date of Public Act 91-478), no redevelopment plan may
16be approved or amended that includes the development of vacant
17land (i) with a golf course and related clubhouse and other
18facilities or (ii) designated by federal, State, county, or
19municipal government as public land for outdoor recreational
20activities or for nature preserves and used for that purpose
21within 5 years prior to the adoption of the redevelopment plan.
22For the purpose of this subsection, "recreational activities"
23is limited to mean camping and hunting.
24    (p) "Redevelopment project area" means an area designated
25by the municipality, which is not less in the aggregate than 1
261/2 acres and in respect to which the municipality has made a

 

 

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1finding that there exist conditions which cause the area to be
2classified as an industrial park conservation area or a
3blighted area or a conservation area, or a combination of both
4blighted areas and conservation areas.
5    (p-1) Notwithstanding any provision of this Act to the
6contrary, on and after August 25, 2009 (the effective date of
7Public Act 96-680), a redevelopment project area may include
8areas within a one-half mile radius of an existing or proposed
9Regional Transportation Authority Suburban Transit Access
10Route (STAR Line) station without a finding that the area is
11classified as an industrial park conservation area, a blighted
12area, a conservation area, or a combination thereof, but only
13if the municipality receives unanimous consent from the joint
14review board created to review the proposed redevelopment
15project area.
16    (p-2) Notwithstanding any provision of this Act to the
17contrary, on and after the effective date of this amendatory
18Act of the 99th General Assembly, a redevelopment project area
19may include areas within a transit facility improvement area
20that has been established pursuant to Section 11-74.4-3.3
21without a finding that the area is classified as an industrial
22park conservation area, a blighted area, a conservation area,
23or any combination thereof.
24    (q) "Redevelopment project costs", except for
25redevelopment project areas created pursuant to subsection
26subsections (p-1) or (p-2), means and includes the sum total of

 

 

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1all reasonable or necessary costs incurred or estimated to be
2incurred, and any such costs incidental to a redevelopment plan
3and a redevelopment project. Such costs include, without
4limitation, the following:
5        (1) Costs of studies, surveys, development of plans,
6    and specifications, implementation and administration of
7    the redevelopment plan including but not limited to staff
8    and professional service costs for architectural,
9    engineering, legal, financial, planning or other services,
10    provided however that no charges for professional services
11    may be based on a percentage of the tax increment
12    collected; except that on and after November 1, 1999 (the
13    effective date of Public Act 91-478), no contracts for
14    professional services, excluding architectural and
15    engineering services, may be entered into if the terms of
16    the contract extend beyond a period of 3 years. In
17    addition, "redevelopment project costs" shall not include
18    lobbying expenses. After consultation with the
19    municipality, each tax increment consultant or advisor to a
20    municipality that plans to designate or has designated a
21    redevelopment project area shall inform the municipality
22    in writing of any contracts that the consultant or advisor
23    has entered into with entities or individuals that have
24    received, or are receiving, payments financed by tax
25    increment revenues produced by the redevelopment project
26    area with respect to which the consultant or advisor has

 

 

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1    performed, or will be performing, service for the
2    municipality. This requirement shall be satisfied by the
3    consultant or advisor before the commencement of services
4    for the municipality and thereafter whenever any other
5    contracts with those individuals or entities are executed
6    by the consultant or advisor;
7        (1.5) After July 1, 1999, annual administrative costs
8    shall not include general overhead or administrative costs
9    of the municipality that would still have been incurred by
10    the municipality if the municipality had not designated a
11    redevelopment project area or approved a redevelopment
12    plan;
13        (1.6) The cost of marketing sites within the
14    redevelopment project area to prospective businesses,
15    developers, and investors;
16        (2) Property assembly costs, including but not limited
17    to acquisition of land and other property, real or
18    personal, or rights or interests therein, demolition of
19    buildings, site preparation, site improvements that serve
20    as an engineered barrier addressing ground level or below
21    ground environmental contamination, including, but not
22    limited to parking lots and other concrete or asphalt
23    barriers, and the clearing and grading of land;
24        (3) Costs of rehabilitation, reconstruction or repair
25    or remodeling of existing public or private buildings,
26    fixtures, and leasehold improvements; and the cost of

 

 

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1    replacing an existing public building if pursuant to the
2    implementation of a redevelopment project the existing
3    public building is to be demolished to use the site for
4    private investment or devoted to a different use requiring
5    private investment; including any direct or indirect costs
6    relating to Green Globes or LEED certified construction
7    elements or construction elements with an equivalent
8    certification;
9        (4) Costs of the construction of public works or
10    improvements, including any direct or indirect costs
11    relating to Green Globes or LEED certified construction
12    elements or construction elements with an equivalent
13    certification, except that on and after November 1, 1999,
14    redevelopment project costs shall not include the cost of
15    constructing a new municipal public building principally
16    used to provide offices, storage space, or conference
17    facilities or vehicle storage, maintenance, or repair for
18    administrative, public safety, or public works personnel
19    and that is not intended to replace an existing public
20    building as provided under paragraph (3) of subsection (q)
21    of Section 11-74.4-3 unless either (i) the construction of
22    the new municipal building implements a redevelopment
23    project that was included in a redevelopment plan that was
24    adopted by the municipality prior to November 1, 1999, (ii)
25    the municipality makes a reasonable determination in the
26    redevelopment plan, supported by information that provides

 

 

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1    the basis for that determination, that the new municipal
2    building is required to meet an increase in the need for
3    public safety purposes anticipated to result from the
4    implementation of the redevelopment plan, or (iii) the new
5    municipal public building is for the storage, maintenance,
6    or repair of transit vehicles and is located in a transit
7    facility improvement area that has been established
8    pursuant to Section 11-74.4-3.3;
9        (5) Costs of job training and retraining projects,
10    including the cost of "welfare to work" programs
11    implemented by businesses located within the redevelopment
12    project area;
13        (6) Financing costs, including but not limited to all
14    necessary and incidental expenses related to the issuance
15    of obligations and which may include payment of interest on
16    any obligations issued hereunder including interest
17    accruing during the estimated period of construction of any
18    redevelopment project for which such obligations are
19    issued and for not exceeding 36 months thereafter and
20    including reasonable reserves related thereto;
21        (7) To the extent the municipality by written agreement
22    accepts and approves the same, all or a portion of a taxing
23    district's capital costs resulting from the redevelopment
24    project necessarily incurred or to be incurred within a
25    taxing district in furtherance of the objectives of the
26    redevelopment plan and project; .

 

 

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1        (7.5) For redevelopment project areas designated (or
2    redevelopment project areas amended to add or increase the
3    number of tax-increment-financing assisted housing units)
4    on or after November 1, 1999, an elementary, secondary, or
5    unit school district's increased costs attributable to
6    assisted housing units located within the redevelopment
7    project area for which the developer or redeveloper
8    receives financial assistance through an agreement with
9    the municipality or because the municipality incurs the
10    cost of necessary infrastructure improvements within the
11    boundaries of the assisted housing sites necessary for the
12    completion of that housing as authorized by this Act, and
13    which costs shall be paid by the municipality from the
14    Special Tax Allocation Fund when the tax increment revenue
15    is received as a result of the assisted housing units and
16    shall be calculated annually as follows:
17            (A) for foundation districts, excluding any school
18        district in a municipality with a population in excess
19        of 1,000,000, by multiplying the district's increase
20        in attendance resulting from the net increase in new
21        students enrolled in that school district who reside in
22        housing units within the redevelopment project area
23        that have received financial assistance through an
24        agreement with the municipality or because the
25        municipality incurs the cost of necessary
26        infrastructure improvements within the boundaries of

 

 

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1        the housing sites necessary for the completion of that
2        housing as authorized by this Act since the designation
3        of the redevelopment project area by the most recently
4        available per capita tuition cost as defined in Section
5        10-20.12a of the School Code less any increase in
6        general State aid as defined in Section 18-8.05 of the
7        School Code or evidence-based funding as defined in
8        Section 18-8.15 of the School Code attributable to
9        these added new students subject to the following
10        annual limitations:
11                (i) for unit school districts with a district
12            average 1995-96 Per Capita Tuition Charge of less
13            than $5,900, no more than 25% of the total amount
14            of property tax increment revenue produced by
15            those housing units that have received tax
16            increment finance assistance under this Act;
17                (ii) for elementary school districts with a
18            district average 1995-96 Per Capita Tuition Charge
19            of less than $5,900, no more than 17% of the total
20            amount of property tax increment revenue produced
21            by those housing units that have received tax
22            increment finance assistance under this Act; and
23                (iii) for secondary school districts with a
24            district average 1995-96 Per Capita Tuition Charge
25            of less than $5,900, no more than 8% of the total
26            amount of property tax increment revenue produced

 

 

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1            by those housing units that have received tax
2            increment finance assistance under this Act.
3            (B) For alternate method districts, flat grant
4        districts, and foundation districts with a district
5        average 1995-96 Per Capita Tuition Charge equal to or
6        more than $5,900, excluding any school district with a
7        population in excess of 1,000,000, by multiplying the
8        district's increase in attendance resulting from the
9        net increase in new students enrolled in that school
10        district who reside in housing units within the
11        redevelopment project area that have received
12        financial assistance through an agreement with the
13        municipality or because the municipality incurs the
14        cost of necessary infrastructure improvements within
15        the boundaries of the housing sites necessary for the
16        completion of that housing as authorized by this Act
17        since the designation of the redevelopment project
18        area by the most recently available per capita tuition
19        cost as defined in Section 10-20.12a of the School Code
20        less any increase in general state aid as defined in
21        Section 18-8.05 of the School Code or evidence-based
22        funding as defined in Section 18-8.15 of the School
23        Code attributable to these added new students subject
24        to the following annual limitations:
25                (i) for unit school districts, no more than 40%
26            of the total amount of property tax increment

 

 

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1            revenue produced by those housing units that have
2            received tax increment finance assistance under
3            this Act;
4                (ii) for elementary school districts, no more
5            than 27% of the total amount of property tax
6            increment revenue produced by those housing units
7            that have received tax increment finance
8            assistance under this Act; and
9                (iii) for secondary school districts, no more
10            than 13% of the total amount of property tax
11            increment revenue produced by those housing units
12            that have received tax increment finance
13            assistance under this Act.
14            (C) For any school district in a municipality with
15        a population in excess of 1,000,000, the following
16        restrictions shall apply to the reimbursement of
17        increased costs under this paragraph (7.5):
18                (i) no increased costs shall be reimbursed
19            unless the school district certifies that each of
20            the schools affected by the assisted housing
21            project is at or over its student capacity;
22                (ii) the amount reimbursable shall be reduced
23            by the value of any land donated to the school
24            district by the municipality or developer, and by
25            the value of any physical improvements made to the
26            schools by the municipality or developer; and

 

 

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1                (iii) the amount reimbursed may not affect
2            amounts otherwise obligated by the terms of any
3            bonds, notes, or other funding instruments, or the
4            terms of any redevelopment agreement.
5        Any school district seeking payment under this
6        paragraph (7.5) shall, after July 1 and before
7        September 30 of each year, provide the municipality
8        with reasonable evidence to support its claim for
9        reimbursement before the municipality shall be
10        required to approve or make the payment to the school
11        district. If the school district fails to provide the
12        information during this period in any year, it shall
13        forfeit any claim to reimbursement for that year.
14        School districts may adopt a resolution waiving the
15        right to all or a portion of the reimbursement
16        otherwise required by this paragraph (7.5). By
17        acceptance of this reimbursement the school district
18        waives the right to directly or indirectly set aside,
19        modify, or contest in any manner the establishment of
20        the redevelopment project area or projects;
21        (7.7) For redevelopment project areas designated (or
22    redevelopment project areas amended to add or increase the
23    number of tax-increment-financing assisted housing units)
24    on or after January 1, 2005 (the effective date of Public
25    Act 93-961), a public library district's increased costs
26    attributable to assisted housing units located within the

 

 

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1    redevelopment project area for which the developer or
2    redeveloper receives financial assistance through an
3    agreement with the municipality or because the
4    municipality incurs the cost of necessary infrastructure
5    improvements within the boundaries of the assisted housing
6    sites necessary for the completion of that housing as
7    authorized by this Act shall be paid to the library
8    district by the municipality from the Special Tax
9    Allocation Fund when the tax increment revenue is received
10    as a result of the assisted housing units. This paragraph
11    (7.7) applies only if (i) the library district is located
12    in a county that is subject to the Property Tax Extension
13    Limitation Law or (ii) the library district is not located
14    in a county that is subject to the Property Tax Extension
15    Limitation Law but the district is prohibited by any other
16    law from increasing its tax levy rate without a prior voter
17    referendum.
18        The amount paid to a library district under this
19    paragraph (7.7) shall be calculated by multiplying (i) the
20    net increase in the number of persons eligible to obtain a
21    library card in that district who reside in housing units
22    within the redevelopment project area that have received
23    financial assistance through an agreement with the
24    municipality or because the municipality incurs the cost of
25    necessary infrastructure improvements within the
26    boundaries of the housing sites necessary for the

 

 

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1    completion of that housing as authorized by this Act since
2    the designation of the redevelopment project area by (ii)
3    the per-patron cost of providing library services so long
4    as it does not exceed $120. The per-patron cost shall be
5    the Total Operating Expenditures Per Capita for the library
6    in the previous fiscal year. The municipality may deduct
7    from the amount that it must pay to a library district
8    under this paragraph any amount that it has voluntarily
9    paid to the library district from the tax increment
10    revenue. The amount paid to a library district under this
11    paragraph (7.7) shall be no more than 2% of the amount
12    produced by the assisted housing units and deposited into
13    the Special Tax Allocation Fund.
14        A library district is not eligible for any payment
15    under this paragraph (7.7) unless the library district has
16    experienced an increase in the number of patrons from the
17    municipality that created the tax-increment-financing
18    district since the designation of the redevelopment
19    project area.
20        Any library district seeking payment under this
21    paragraph (7.7) shall, after July 1 and before September 30
22    of each year, provide the municipality with convincing
23    evidence to support its claim for reimbursement before the
24    municipality shall be required to approve or make the
25    payment to the library district. If the library district
26    fails to provide the information during this period in any

 

 

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1    year, it shall forfeit any claim to reimbursement for that
2    year. Library districts may adopt a resolution waiving the
3    right to all or a portion of the reimbursement otherwise
4    required by this paragraph (7.7). By acceptance of such
5    reimbursement, the library district shall forfeit any
6    right to directly or indirectly set aside, modify, or
7    contest in any manner whatsoever the establishment of the
8    redevelopment project area or projects;
9        (8) Relocation costs to the extent that a municipality
10    determines that relocation costs shall be paid or is
11    required to make payment of relocation costs by federal or
12    State law or in order to satisfy subparagraph (7) of
13    subsection (n);
14        (9) Payment in lieu of taxes;
15        (10) Costs of job training, retraining, advanced
16    vocational education or career education, including but
17    not limited to courses in occupational, semi-technical or
18    technical fields leading directly to employment, incurred
19    by one or more taxing districts, provided that such costs
20    (i) are related to the establishment and maintenance of
21    additional job training, advanced vocational education or
22    career education programs for persons employed or to be
23    employed by employers located in a redevelopment project
24    area; and (ii) when incurred by a taxing district or taxing
25    districts other than the municipality, are set forth in a
26    written agreement by or among the municipality and the

 

 

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1    taxing district or taxing districts, which agreement
2    describes the program to be undertaken, including but not
3    limited to the number of employees to be trained, a
4    description of the training and services to be provided,
5    the number and type of positions available or to be
6    available, itemized costs of the program and sources of
7    funds to pay for the same, and the term of the agreement.
8    Such costs include, specifically, the payment by community
9    college districts of costs pursuant to Sections 3-37, 3-38,
10    3-40 and 3-40.1 of the Public Community College Act and by
11    school districts of costs pursuant to Sections 10-22.20a
12    and 10-23.3a of the The School Code;
13        (11) Interest cost incurred by a redeveloper related to
14    the construction, renovation or rehabilitation of a
15    redevelopment project provided that:
16            (A) such costs are to be paid directly from the
17        special tax allocation fund established pursuant to
18        this Act;
19            (B) such payments in any one year may not exceed
20        30% of the annual interest costs incurred by the
21        redeveloper with regard to the redevelopment project
22        during that year;
23            (C) if there are not sufficient funds available in
24        the special tax allocation fund to make the payment
25        pursuant to this paragraph (11) then the amounts so due
26        shall accrue and be payable when sufficient funds are

 

 

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1        available in the special tax allocation fund;
2            (D) the total of such interest payments paid
3        pursuant to this Act may not exceed 30% of the total
4        (i) cost paid or incurred by the redeveloper for the
5        redevelopment project plus (ii) redevelopment project
6        costs excluding any property assembly costs and any
7        relocation costs incurred by a municipality pursuant
8        to this Act; and
9            (E) the cost limits set forth in subparagraphs (B)
10        and (D) of paragraph (11) shall be modified for the
11        financing of rehabilitated or new housing units for
12        low-income households and very low-income households,
13        as defined in Section 3 of the Illinois Affordable
14        Housing Act. The percentage of 75% shall be substituted
15        for 30% in subparagraphs (B) and (D) of paragraph (11);
16        and .
17            (F) instead Instead of the eligible costs provided
18        by subparagraphs (B) and (D) of paragraph (11), as
19        modified by this subparagraph, and notwithstanding any
20        other provisions of this Act to the contrary, the
21        municipality may pay from tax increment revenues up to
22        50% of the cost of construction of new housing units to
23        be occupied by low-income households and very
24        low-income households as defined in Section 3 of the
25        Illinois Affordable Housing Act. The cost of
26        construction of those units may be derived from the

 

 

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1        proceeds of bonds issued by the municipality under this
2        Act or other constitutional or statutory authority or
3        from other sources of municipal revenue that may be
4        reimbursed from tax increment revenues or the proceeds
5        of bonds issued to finance the construction of that
6        housing.
7            The eligible costs provided under this
8        subparagraph (F) of paragraph (11) shall be an eligible
9        cost for the construction, renovation, and
10        rehabilitation of all low and very low-income housing
11        units, as defined in Section 3 of the Illinois
12        Affordable Housing Act, within the redevelopment
13        project area. If the low and very low-income units are
14        part of a residential redevelopment project that
15        includes units not affordable to low and very
16        low-income households, only the low and very
17        low-income units shall be eligible for benefits under
18        this subparagraph (F) of paragraph (11). The standards
19        for maintaining the occupancy by low-income households
20        and very low-income households, as defined in Section 3
21        of the Illinois Affordable Housing Act, of those units
22        constructed with eligible costs made available under
23        the provisions of this subparagraph (F) of paragraph
24        (11) shall be established by guidelines adopted by the
25        municipality. The responsibility for annually
26        documenting the initial occupancy of the units by

 

 

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1        low-income households and very low-income households,
2        as defined in Section 3 of the Illinois Affordable
3        Housing Act, shall be that of the then current owner of
4        the property. For ownership units, the guidelines will
5        provide, at a minimum, for a reasonable recapture of
6        funds, or other appropriate methods designed to
7        preserve the original affordability of the ownership
8        units. For rental units, the guidelines will provide,
9        at a minimum, for the affordability of rent to low and
10        very low-income households. As units become available,
11        they shall be rented to income-eligible tenants. The
12        municipality may modify these guidelines from time to
13        time; the guidelines, however, shall be in effect for
14        as long as tax increment revenue is being used to pay
15        for costs associated with the units or for the
16        retirement of bonds issued to finance the units or for
17        the life of the redevelopment project area, whichever
18        is later; .
19        (11.5) If the redevelopment project area is located
20    within a municipality with a population of more than
21    100,000, the cost of day care services for children of
22    employees from low-income families working for businesses
23    located within the redevelopment project area and all or a
24    portion of the cost of operation of day care centers
25    established by redevelopment project area businesses to
26    serve employees from low-income families working in

 

 

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1    businesses located in the redevelopment project area. For
2    the purposes of this paragraph, "low-income families"
3    means families whose annual income does not exceed 80% of
4    the municipal, county, or regional median income, adjusted
5    for family size, as the annual income and municipal,
6    county, or regional median income are determined from time
7    to time by the United States Department of Housing and
8    Urban Development.
9    (12) Unless explicitly stated herein the cost of
10construction of new privately-owned buildings shall not be an
11eligible redevelopment project cost.
12    (13) After November 1, 1999 (the effective date of Public
13Act 91-478), none of the redevelopment project costs enumerated
14in this subsection shall be eligible redevelopment project
15costs if those costs would provide direct financial support to
16a retail entity initiating operations in the redevelopment
17project area while terminating operations at another Illinois
18location within 10 miles of the redevelopment project area but
19outside the boundaries of the redevelopment project area
20municipality. For purposes of this paragraph, termination
21means a closing of a retail operation that is directly related
22to the opening of the same operation or like retail entity
23owned or operated by more than 50% of the original ownership in
24a redevelopment project area, but it does not mean closing an
25operation for reasons beyond the control of the retail entity,
26as documented by the retail entity, subject to a reasonable

 

 

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1finding by the municipality that the current location contained
2inadequate space, had become economically obsolete, or was no
3longer a viable location for the retailer or serviceman.
4    (14) No cost shall be a redevelopment project cost in a
5redevelopment project area if used to demolish, remove, or
6substantially modify a historic resource, after August 26, 2008
7(the effective date of Public Act 95-934), unless no prudent
8and feasible alternative exists. "Historic resource" for the
9purpose of this paragraph item (14) means (i) a place or
10structure that is included or eligible for inclusion on the
11National Register of Historic Places or (ii) a contributing
12structure in a district on the National Register of Historic
13Places. This paragraph item (14) does not apply to a place or
14structure for which demolition, removal, or modification is
15subject to review by the preservation agency of a Certified
16Local Government designated as such by the National Park
17Service of the United States Department of the Interior.
18    If a special service area has been established pursuant to
19the Special Service Area Tax Act or Special Service Area Tax
20Law, then any tax increment revenues derived from the tax
21imposed pursuant to the Special Service Area Tax Act or Special
22Service Area Tax Law may be used within the redevelopment
23project area for the purposes permitted by that Act or Law as
24well as the purposes permitted by this Act.
25    (q-1) For redevelopment project areas created pursuant to
26subsection (p-1), redevelopment project costs are limited to

 

 

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1those costs in paragraph (q) that are related to the existing
2or proposed Regional Transportation Authority Suburban Transit
3Access Route (STAR Line) station.
4    (q-2) For a redevelopment project area located within a
5transit facility improvement area established pursuant to
6Section 11-74.4-3.3, redevelopment project costs means those
7costs described in subsection (q) that are related to the
8construction, reconstruction, rehabilitation, remodeling, or
9repair of any existing or proposed transit facility.
10    (r) "State Sales Tax Boundary" means the redevelopment
11project area or the amended redevelopment project area
12boundaries which are determined pursuant to subsection (9) of
13Section 11-74.4-8a of this Act. The Department of Revenue shall
14certify pursuant to subsection (9) of Section 11-74.4-8a the
15appropriate boundaries eligible for the determination of State
16Sales Tax Increment.
17    (s) "State Sales Tax Increment" means an amount equal to
18the increase in the aggregate amount of taxes paid by retailers
19and servicemen, other than retailers and servicemen subject to
20the Public Utilities Act, on transactions at places of business
21located within a State Sales Tax Boundary pursuant to the
22Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
23Tax Act, and the Service Occupation Tax Act, except such
24portion of such increase that is paid into the State and Local
25Sales Tax Reform Fund, the Local Government Distributive Fund,
26the Local Government Tax Fund and the County and Mass Transit

 

 

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1District Fund, for as long as State participation exists, over
2and above the Initial Sales Tax Amounts, Adjusted Initial Sales
3Tax Amounts or the Revised Initial Sales Tax Amounts for such
4taxes as certified by the Department of Revenue and paid under
5those Acts by retailers and servicemen on transactions at
6places of business located within the State Sales Tax Boundary
7during the base year which shall be the calendar year
8immediately prior to the year in which the municipality adopted
9tax increment allocation financing, less 3.0% of such amounts
10generated under the Retailers' Occupation Tax Act, Use Tax Act
11and Service Use Tax Act and the Service Occupation Tax Act,
12which sum shall be appropriated to the Department of Revenue to
13cover its costs of administering and enforcing this Section.
14For purposes of computing the aggregate amount of such taxes
15for base years occurring prior to 1985, the Department of
16Revenue shall compute the Initial Sales Tax Amount for such
17taxes and deduct therefrom an amount equal to 4% of the
18aggregate amount of taxes per year for each year the base year
19is prior to 1985, but not to exceed a total deduction of 12%.
20The amount so determined shall be known as the "Adjusted
21Initial Sales Tax Amount". For purposes of determining the
22State Sales Tax Increment the Department of Revenue shall for
23each period subtract from the tax amounts received from
24retailers and servicemen on transactions located in the State
25Sales Tax Boundary, the certified Initial Sales Tax Amounts,
26Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax

 

 

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1Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
2the Service Use Tax Act and the Service Occupation Tax Act. For
3the State Fiscal Year 1989 this calculation shall be made by
4utilizing the calendar year 1987 to determine the tax amounts
5received. For the State Fiscal Year 1990, this calculation
6shall be made by utilizing the period from January 1, 1988,
7until September 30, 1988, to determine the tax amounts received
8from retailers and servicemen, which shall have deducted
9therefrom nine-twelfths of the certified Initial Sales Tax
10Amounts, Adjusted Initial Sales Tax Amounts or the Revised
11Initial Sales Tax Amounts as appropriate. For the State Fiscal
12Year 1991, this calculation shall be made by utilizing the
13period from October 1, 1988, until June 30, 1989, to determine
14the tax amounts received from retailers and servicemen, which
15shall have deducted therefrom nine-twelfths of the certified
16Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
17Amounts or the Revised Initial Sales Tax Amounts as
18appropriate. For every State Fiscal Year thereafter, the
19applicable period shall be the 12 months beginning July 1 and
20ending on June 30, to determine the tax amounts received which
21shall have deducted therefrom the certified Initial Sales Tax
22Amounts, Adjusted Initial Sales Tax Amounts or the Revised
23Initial Sales Tax Amounts. Municipalities intending to receive
24a distribution of State Sales Tax Increment must report a list
25of retailers to the Department of Revenue by October 31, 1988
26and by July 31, of each year thereafter.

 

 

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1    (t) "Taxing districts" means counties, townships, cities
2and incorporated towns and villages, school, road, park,
3sanitary, mosquito abatement, forest preserve, public health,
4fire protection, river conservancy, tuberculosis sanitarium
5and any other municipal corporations or districts with the
6power to levy taxes.
7    (u) "Taxing districts' capital costs" means those costs of
8taxing districts for capital improvements that are found by the
9municipal corporate authorities to be necessary and directly
10result from the redevelopment project.
11    (v) As used in subsection (a) of Section 11-74.4-3 of this
12Act, "vacant land" means any parcel or combination of parcels
13of real property without industrial, commercial, and
14residential buildings which has not been used for commercial
15agricultural purposes within 5 years prior to the designation
16of the redevelopment project area, unless the parcel is
17included in an industrial park conservation area or the parcel
18has been subdivided; provided that if the parcel was part of a
19larger tract that has been divided into 3 or more smaller
20tracts that were accepted for recording during the period from
211950 to 1990, then the parcel shall be deemed to have been
22subdivided, and all proceedings and actions of the municipality
23taken in that connection with respect to any previously
24approved or designated redevelopment project area or amended
25redevelopment project area are hereby validated and hereby
26declared to be legally sufficient for all purposes of this Act.

 

 

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1For purposes of this Section and only for land subject to the
2subdivision requirements of the Plat Act, land is subdivided
3when the original plat of the proposed Redevelopment Project
4Area or relevant portion thereof has been properly certified,
5acknowledged, approved, and recorded or filed in accordance
6with the Plat Act and a preliminary plat, if any, for any
7subsequent phases of the proposed Redevelopment Project Area or
8relevant portion thereof has been properly approved and filed
9in accordance with the applicable ordinance of the
10municipality.
11    (w) "Annual Total Increment" means the sum of each
12municipality's annual Net Sales Tax Increment and each
13municipality's annual Net Utility Tax Increment. The ratio of
14the Annual Total Increment of each municipality to the Annual
15Total Increment for all municipalities, as most recently
16calculated by the Department, shall determine the proportional
17shares of the Illinois Tax Increment Fund to be distributed to
18each municipality.
19    (x) "LEED certified" means any certification level of
20construction elements by a qualified Leadership in Energy and
21Environmental Design Accredited Professional as determined by
22the U.S. Green Building Council.
23    (y) "Green Globes certified" means any certification level
24of construction elements by a qualified Green Globes
25Professional as determined by the Green Building Initiative.
26(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 

 

 

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1    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
2    Sec. 11-74.4-8. Tax increment allocation financing. A
3municipality may not adopt tax increment financing in a
4redevelopment project area after the effective date of this
5amendatory Act of 1997 that will encompass an area that is
6currently included in an enterprise zone created under the
7Illinois Enterprise Zone Act unless that municipality,
8pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
9amends the enterprise zone designating ordinance to limit the
10eligibility for tax abatements as provided in Section 5.4.1 of
11the Illinois Enterprise Zone Act. A municipality, at the time a
12redevelopment project area is designated, may adopt tax
13increment allocation financing by passing an ordinance
14providing that the ad valorem taxes, if any, arising from the
15levies upon taxable real property in such redevelopment project
16area by taxing districts and tax rates determined in the manner
17provided in paragraph (c) of Section 11-74.4-9 each year after
18the effective date of the ordinance until redevelopment project
19costs and all municipal obligations financing redevelopment
20project costs incurred under this Division have been paid shall
21be divided as follows, provided, however, that with respect to
22any redevelopment project area located within a transit
23facility improvement area established pursuant to Section
2411-74.4-3.3 in a municipality with a population of 1,000,000 or
25more, ad valorem taxes, if any, arising from the levies upon

 

 

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1taxable real property in such redevelopment project area shall
2be allocated as specifically provided in this Section:
3        (a) That portion of taxes levied upon each taxable lot,
4    block, tract or parcel of real property which is
5    attributable to the lower of the current equalized assessed
6    value or the initial equalized assessed value of each such
7    taxable lot, block, tract or parcel of real property in the
8    redevelopment project area shall be allocated to and when
9    collected shall be paid by the county collector to the
10    respective affected taxing districts in the manner
11    required by law in the absence of the adoption of tax
12    increment allocation financing.
13        (b) Except from a tax levied by a township to retire
14    bonds issued to satisfy court-ordered damages, that
15    portion, if any, of such taxes which is attributable to the
16    increase in the current equalized assessed valuation of
17    each taxable lot, block, tract or parcel of real property
18    in the redevelopment project area over and above the
19    initial equalized assessed value of each property in the
20    project area shall be allocated to and when collected shall
21    be paid to the municipal treasurer who shall deposit said
22    taxes into a special fund called the special tax allocation
23    fund of the municipality for the purpose of paying
24    redevelopment project costs and obligations incurred in
25    the payment thereof. In any county with a population of
26    3,000,000 or more that has adopted a procedure for

 

 

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1    collecting taxes that provides for one or more of the
2    installments of the taxes to be billed and collected on an
3    estimated basis, the municipal treasurer shall be paid for
4    deposit in the special tax allocation fund of the
5    municipality, from the taxes collected from estimated
6    bills issued for property in the redevelopment project
7    area, the difference between the amount actually collected
8    from each taxable lot, block, tract, or parcel of real
9    property within the redevelopment project area and an
10    amount determined by multiplying the rate at which taxes
11    were last extended against the taxable lot, block, track,
12    or parcel of real property in the manner provided in
13    subsection (c) of Section 11-74.4-9 by the initial
14    equalized assessed value of the property divided by the
15    number of installments in which real estate taxes are
16    billed and collected within the county; provided that the
17    payments on or before December 31, 1999 to a municipal
18    treasurer shall be made only if each of the following
19    conditions are met:
20        (1) The total equalized assessed value of the
21        redevelopment project area as last determined was not
22        less than 175% of the total initial equalized assessed
23        value.
24        (2) Not more than 50% of the total equalized assessed
25        value of the redevelopment project area as last
26        determined is attributable to a piece of property

 

 

HB2808- 89 -LRB100 11017 NHT 21256 b

1        assigned a single real estate index number.
2        (3) The municipal clerk has certified to the county
3        clerk that the municipality has issued its obligations
4        to which there has been pledged the incremental
5        property taxes of the redevelopment project area or
6        taxes levied and collected on any or all property in
7        the municipality or the full faith and credit of the
8        municipality to pay or secure payment for all or a
9        portion of the redevelopment project costs. The
10        certification shall be filed annually no later than
11        September 1 for the estimated taxes to be distributed
12        in the following year; however, for the year 1992 the
13        certification shall be made at any time on or before
14        March 31, 1992.
15        (4) The municipality has not requested that the total
16        initial equalized assessed value of real property be
17        adjusted as provided in subsection (b) of Section
18        11-74.4-9.
19        The conditions of paragraphs (1) through (4) do not
20    apply after December 31, 1999 to payments to a municipal
21    treasurer made by a county with 3,000,000 or more
22    inhabitants that has adopted an estimated billing
23    procedure for collecting taxes. If a county that has
24    adopted the estimated billing procedure makes an erroneous
25    overpayment of tax revenue to the municipal treasurer, then
26    the county may seek a refund of that overpayment. The

 

 

HB2808- 90 -LRB100 11017 NHT 21256 b

1    county shall send the municipal treasurer a notice of
2    liability for the overpayment on or before the mailing date
3    of the next real estate tax bill within the county. The
4    refund shall be limited to the amount of the overpayment.
5        It is the intent of this Division that after the
6    effective date of this amendatory Act of 1988 a
7    municipality's own ad valorem tax arising from levies on
8    taxable real property be included in the determination of
9    incremental revenue in the manner provided in paragraph (c)
10    of Section 11-74.4-9. If the municipality does not extend
11    such a tax, it shall annually deposit in the municipality's
12    Special Tax Increment Fund an amount equal to 10% of the
13    total contributions to the fund from all other taxing
14    districts in that year. The annual 10% deposit required by
15    this paragraph shall be limited to the actual amount of
16    municipally produced incremental tax revenues available to
17    the municipality from taxpayers located in the
18    redevelopment project area in that year if: (a) the plan
19    for the area restricts the use of the property primarily to
20    industrial purposes, (b) the municipality establishing the
21    redevelopment project area is a home-rule community with a
22    1990 population of between 25,000 and 50,000, (c) the
23    municipality is wholly located within a county with a 1990
24    population of over 750,000 and (d) the redevelopment
25    project area was established by the municipality prior to
26    June 1, 1990. This payment shall be in lieu of a

 

 

HB2808- 91 -LRB100 11017 NHT 21256 b

1    contribution of ad valorem taxes on real property. If no
2    such payment is made, any redevelopment project area of the
3    municipality shall be dissolved.
4        If a municipality has adopted tax increment allocation
5    financing by ordinance and the County Clerk thereafter
6    certifies the "total initial equalized assessed value as
7    adjusted" of the taxable real property within such
8    redevelopment project area in the manner provided in
9    paragraph (b) of Section 11-74.4-9, each year after the
10    date of the certification of the total initial equalized
11    assessed value as adjusted until redevelopment project
12    costs and all municipal obligations financing
13    redevelopment project costs have been paid the ad valorem
14    taxes, if any, arising from the levies upon the taxable
15    real property in such redevelopment project area by taxing
16    districts and tax rates determined in the manner provided
17    in paragraph (c) of Section 11-74.4-9 shall be divided as
18    follows, provided, however, that with respect to any
19    redevelopment project area located within a transit
20    facility improvement area established pursuant to Section
21    11-74.4-3.3 in a municipality with a population of
22    1,000,000 or more, ad valorem taxes, if any, arising from
23    the levies upon the taxable real property in such
24    redevelopment project area shall be allocated as
25    specifically provided in this Section:
26        (1) That portion of the taxes levied upon each taxable

 

 

HB2808- 92 -LRB100 11017 NHT 21256 b

1        lot, block, tract or parcel of real property which is
2        attributable to the lower of the current equalized
3        assessed value or "current equalized assessed value as
4        adjusted" or the initial equalized assessed value of
5        each such taxable lot, block, tract, or parcel of real
6        property existing at the time tax increment financing
7        was adopted, minus the total current homestead
8        exemptions under Article 15 of the Property Tax Code in
9        the redevelopment project area shall be allocated to
10        and when collected shall be paid by the county
11        collector to the respective affected taxing districts
12        in the manner required by law in the absence of the
13        adoption of tax increment allocation financing.
14        (2) That portion, if any, of such taxes which is
15        attributable to the increase in the current equalized
16        assessed valuation of each taxable lot, block, tract,
17        or parcel of real property in the redevelopment project
18        area, over and above the initial equalized assessed
19        value of each property existing at the time tax
20        increment financing was adopted, minus the total
21        current homestead exemptions pertaining to each piece
22        of property provided by Article 15 of the Property Tax
23        Code in the redevelopment project area, shall be
24        allocated to and when collected shall be paid to the
25        municipal Treasurer, who shall deposit said taxes into
26        a special fund called the special tax allocation fund

 

 

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1        of the municipality for the purpose of paying
2        redevelopment project costs and obligations incurred
3        in the payment thereof.
4        The municipality may pledge in the ordinance the funds
5    in and to be deposited in the special tax allocation fund
6    for the payment of such costs and obligations. No part of
7    the current equalized assessed valuation of each property
8    in the redevelopment project area attributable to any
9    increase above the total initial equalized assessed value,
10    or the total initial equalized assessed value as adjusted,
11    of such properties shall be used in calculating the general
12    State school aid formula, provided for in Section 18-8 of
13    the School Code, or the evidence-based funding formula,
14    provided for in Section 18-8.15 of the School Code, until
15    such time as all redevelopment project costs have been paid
16    as provided for in this Section.
17        Whenever a municipality issues bonds for the purpose of
18    financing redevelopment project costs, such municipality
19    may provide by ordinance for the appointment of a trustee,
20    which may be any trust company within the State, and for
21    the establishment of such funds or accounts to be
22    maintained by such trustee as the municipality shall deem
23    necessary to provide for the security and payment of the
24    bonds. If such municipality provides for the appointment of
25    a trustee, such trustee shall be considered the assignee of
26    any payments assigned by the municipality pursuant to such

 

 

HB2808- 94 -LRB100 11017 NHT 21256 b

1    ordinance and this Section. Any amounts paid to such
2    trustee as assignee shall be deposited in the funds or
3    accounts established pursuant to such trust agreement, and
4    shall be held by such trustee in trust for the benefit of
5    the holders of the bonds, and such holders shall have a
6    lien on and a security interest in such funds or accounts
7    so long as the bonds remain outstanding and unpaid. Upon
8    retirement of the bonds, the trustee shall pay over any
9    excess amounts held to the municipality for deposit in the
10    special tax allocation fund.
11        When such redevelopment projects costs, including
12    without limitation all municipal obligations financing
13    redevelopment project costs incurred under this Division,
14    have been paid, all surplus funds then remaining in the
15    special tax allocation fund shall be distributed by being
16    paid by the municipal treasurer to the Department of
17    Revenue, the municipality and the county collector; first
18    to the Department of Revenue and the municipality in direct
19    proportion to the tax incremental revenue received from the
20    State and the municipality, but not to exceed the total
21    incremental revenue received from the State or the
22    municipality less any annual surplus distribution of
23    incremental revenue previously made; with any remaining
24    funds to be paid to the County Collector who shall
25    immediately thereafter pay said funds to the taxing
26    districts in the redevelopment project area in the same

 

 

HB2808- 95 -LRB100 11017 NHT 21256 b

1    manner and proportion as the most recent distribution by
2    the county collector to the affected districts of real
3    property taxes from real property in the redevelopment
4    project area.
5        Upon the payment of all redevelopment project costs,
6    the retirement of obligations, the distribution of any
7    excess monies pursuant to this Section, and final closing
8    of the books and records of the redevelopment project area,
9    the municipality shall adopt an ordinance dissolving the
10    special tax allocation fund for the redevelopment project
11    area and terminating the designation of the redevelopment
12    project area as a redevelopment project area. Title to real
13    or personal property and public improvements acquired by or
14    for the municipality as a result of the redevelopment
15    project and plan shall vest in the municipality when
16    acquired and shall continue to be held by the municipality
17    after the redevelopment project area has been terminated.
18    Municipalities shall notify affected taxing districts
19    prior to November 1 if the redevelopment project area is to
20    be terminated by December 31 of that same year. If a
21    municipality extends estimated dates of completion of a
22    redevelopment project and retirement of obligations to
23    finance a redevelopment project, as allowed by this
24    amendatory Act of 1993, that extension shall not extend the
25    property tax increment allocation financing authorized by
26    this Section. Thereafter the rates of the taxing districts

 

 

HB2808- 96 -LRB100 11017 NHT 21256 b

1    shall be extended and taxes levied, collected and
2    distributed in the manner applicable in the absence of the
3    adoption of tax increment allocation financing.
4        If a municipality with a population of 1,000,000 or
5    more has adopted by ordinance tax increment allocation
6    financing for a redevelopment project area located in a
7    transit facility improvement area established pursuant to
8    Section 11-74.4-3.3, for each year after the effective date
9    of the ordinance until redevelopment project costs and all
10    municipal obligations financing redevelopment project
11    costs have been paid, the ad valorem taxes, if any, arising
12    from the levies upon the taxable real property in that
13    redevelopment project area by taxing districts and tax
14    rates determined in the manner provided in paragraph (c) of
15    Section 11-74.4-9 shall be divided as follows:
16            (1) That portion of the taxes levied upon each
17        taxable lot, block, tract or parcel of real property
18        which is attributable to the lower of (i) the current
19        equalized assessed value or "current equalized
20        assessed value as adjusted" or (ii) the initial
21        equalized assessed value of each such taxable lot,
22        block, tract, or parcel of real property existing at
23        the time tax increment financing was adopted, minus the
24        total current homestead exemptions under Article 15 of
25        the Property Tax Code in the redevelopment project area
26        shall be allocated to and when collected shall be paid

 

 

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1        by the county collector to the respective affected
2        taxing districts in the manner required by law in the
3        absence of the adoption of tax increment allocation
4        financing.
5            (2) That portion, if any, of such taxes which is
6        attributable to the increase in the current equalized
7        assessed valuation of each taxable lot, block, tract,
8        or parcel of real property in the redevelopment project
9        area, over and above the initial equalized assessed
10        value of each property existing at the time tax
11        increment financing was adopted, minus the total
12        current homestead exemptions pertaining to each piece
13        of property provided by Article 15 of the Property Tax
14        Code in the redevelopment project area, shall be
15        allocated to and when collected shall be paid by the
16        county collector as follows:
17                (A) First, that portion which would be payable
18            to a school district whose boundaries are
19            coterminous with such municipality in the absence
20            of the adoption of tax increment allocation
21            financing, shall be paid to such school district in
22            the manner required by law in the absence of the
23            adoption of tax increment allocation financing;
24            then
25                (B) 80% of the remaining portion shall be paid
26            to the municipal Treasurer, who shall deposit said

 

 

HB2808- 98 -LRB100 11017 NHT 21256 b

1            taxes into a special fund called the special tax
2            allocation fund of the municipality for the
3            purpose of paying redevelopment project costs and
4            obligations incurred in the payment thereof; and
5            then
6                (C) 20% of the remaining portion shall be paid
7            to the respective affected taxing districts, other
8            than the school district described in clause (a)
9            above, in the manner required by law in the absence
10            of the adoption of tax increment allocation
11            financing.
12    Nothing in this Section shall be construed as relieving
13property in such redevelopment project areas from being
14assessed as provided in the Property Tax Code or as relieving
15owners of such property from paying a uniform rate of taxes, as
16required by Section 4 of Article IX of the Illinois
17Constitution.
18(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
19    (65 ILCS 5/11-74.6-35)
20    Sec. 11-74.6-35. Ordinance for tax increment allocation
21financing.
22    (a) A municipality, at the time a redevelopment project
23area is designated, may adopt tax increment allocation
24financing by passing an ordinance providing that the ad valorem
25taxes, if any, arising from the levies upon taxable real

 

 

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1property within the redevelopment project area by taxing
2districts and tax rates determined in the manner provided in
3subsection (b) of Section 11-74.6-40 each year after the
4effective date of the ordinance until redevelopment project
5costs and all municipal obligations financing redevelopment
6project costs incurred under this Act have been paid shall be
7divided as follows:
8        (1) That portion of the taxes levied upon each taxable
9    lot, block, tract or parcel of real property that is
10    attributable to the lower of the current equalized assessed
11    value or the initial equalized assessed value or the
12    updated initial equalized assessed value of each taxable
13    lot, block, tract or parcel of real property in the
14    redevelopment project area shall be allocated to and when
15    collected shall be paid by the county collector to the
16    respective affected taxing districts in the manner
17    required by law without regard to the adoption of tax
18    increment allocation financing.
19        (2) That portion, if any, of those taxes that is
20    attributable to the increase in the current equalized
21    assessed value of each taxable lot, block, tract or parcel
22    of real property in the redevelopment project area, over
23    and above the initial equalized assessed value or the
24    updated initial equalized assessed value of each property
25    in the project area, shall be allocated to and when
26    collected shall be paid by the county collector to the

 

 

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1    municipal treasurer who shall deposit that portion of those
2    taxes into a special fund called the special tax allocation
3    fund of the municipality for the purpose of paying
4    redevelopment project costs and obligations incurred in
5    the payment of those costs and obligations. In any county
6    with a population of 3,000,000 or more that has adopted a
7    procedure for collecting taxes that provides for one or
8    more of the installments of the taxes to be billed and
9    collected on an estimated basis, the municipal treasurer
10    shall be paid for deposit in the special tax allocation
11    fund of the municipality, from the taxes collected from
12    estimated bills issued for property in the redevelopment
13    project area, the difference between the amount actually
14    collected from each taxable lot, block, tract, or parcel of
15    real property within the redevelopment project area and an
16    amount determined by multiplying the rate at which taxes
17    were last extended against the taxable lot, block, track,
18    or parcel of real property in the manner provided in
19    subsection (b) of Section 11-74.6-40 by the initial
20    equalized assessed value or the updated initial equalized
21    assessed value of the property divided by the number of
22    installments in which real estate taxes are billed and
23    collected within the county, provided that the payments on
24    or before December 31, 1999 to a municipal treasurer shall
25    be made only if each of the following conditions are met:
26            (A) The total equalized assessed value of the

 

 

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1        redevelopment project area as last determined was not
2        less than 175% of the total initial equalized assessed
3        value.
4            (B) Not more than 50% of the total equalized
5        assessed value of the redevelopment project area as
6        last determined is attributable to a piece of property
7        assigned a single real estate index number.
8            (C) The municipal clerk has certified to the county
9        clerk that the municipality has issued its obligations
10        to which there has been pledged the incremental
11        property taxes of the redevelopment project area or
12        taxes levied and collected on any or all property in
13        the municipality or the full faith and credit of the
14        municipality to pay or secure payment for all or a
15        portion of the redevelopment project costs. The
16        certification shall be filed annually no later than
17        September 1 for the estimated taxes to be distributed
18        in the following year.
19    The conditions of paragraphs (A) through (C) do not apply
20after December 31, 1999 to payments to a municipal treasurer
21made by a county with 3,000,000 or more inhabitants that has
22adopted an estimated billing procedure for collecting taxes. If
23a county that has adopted the estimated billing procedure makes
24an erroneous overpayment of tax revenue to the municipal
25treasurer, then the county may seek a refund of that
26overpayment. The county shall send the municipal treasurer a

 

 

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1notice of liability for the overpayment on or before the
2mailing date of the next real estate tax bill within the
3county. The refund shall be limited to the amount of the
4overpayment.
5    (b) It is the intent of this Act that a municipality's own
6ad valorem tax arising from levies on taxable real property be
7included in the determination of incremental revenue in the
8manner provided in paragraph (b) of Section 11-74.6-40.
9    (c) If a municipality has adopted tax increment allocation
10financing for a redevelopment project area by ordinance and the
11county clerk thereafter certifies the total initial equalized
12assessed value or the total updated initial equalized assessed
13value of the taxable real property within such redevelopment
14project area in the manner provided in paragraph (a) or (b) of
15Section 11-74.6-40, each year after the date of the
16certification of the total initial equalized assessed value or
17the total updated initial equalized assessed value until
18redevelopment project costs and all municipal obligations
19financing redevelopment project costs have been paid, the ad
20valorem taxes, if any, arising from the levies upon the taxable
21real property in the redevelopment project area by taxing
22districts and tax rates determined in the manner provided in
23paragraph (b) of Section 11-74.6-40 shall be divided as
24follows:
25        (1) That portion of the taxes levied upon each taxable
26    lot, block, tract or parcel of real property that is

 

 

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1    attributable to the lower of the current equalized assessed
2    value or the initial equalized assessed value, or the
3    updated initial equalized assessed value of each parcel if
4    the updated initial equalized assessed value of that parcel
5    has been certified in accordance with Section 11-74.6-40,
6    whichever has been most recently certified, of each taxable
7    lot, block, tract, or parcel of real property existing at
8    the time tax increment allocation financing was adopted in
9    the redevelopment project area, shall be allocated to and
10    when collected shall be paid by the county collector to the
11    respective affected taxing districts in the manner
12    required by law without regard to the adoption of tax
13    increment allocation financing.
14        (2) That portion, if any, of those taxes that is
15    attributable to the increase in the current equalized
16    assessed value of each taxable lot, block, tract, or parcel
17    of real property in the redevelopment project area, over
18    and above the initial equalized assessed value of each
19    property existing at the time tax increment allocation
20    financing was adopted in the redevelopment project area, or
21    the updated initial equalized assessed value of each parcel
22    if the updated initial equalized assessed value of that
23    parcel has been certified in accordance with Section
24    11-74.6-40, shall be allocated to and when collected shall
25    be paid to the municipal treasurer, who shall deposit those
26    taxes into a special fund called the special tax allocation

 

 

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1    fund of the municipality for the purpose of paying
2    redevelopment project costs and obligations incurred in
3    the payment thereof.
4    (d) The municipality may pledge in the ordinance the funds
5in and to be deposited in the special tax allocation fund for
6the payment of redevelopment project costs and obligations. No
7part of the current equalized assessed value of each property
8in the redevelopment project area attributable to any increase
9above the total initial equalized assessed value or the total
10initial updated equalized assessed value of the property, shall
11be used in calculating the general General State aid formula
12School Aid Formula, provided for in Section 18-8 of the School
13Code, or the evidence-based funding formula, provided for in
14Section 18-8.15 of the School Code, until all redevelopment
15project costs have been paid as provided for in this Section.
16    Whenever a municipality issues bonds for the purpose of
17financing redevelopment project costs, that municipality may
18provide by ordinance for the appointment of a trustee, which
19may be any trust company within the State, and for the
20establishment of any funds or accounts to be maintained by that
21trustee, as the municipality deems necessary to provide for the
22security and payment of the bonds. If the municipality provides
23for the appointment of a trustee, the trustee shall be
24considered the assignee of any payments assigned by the
25municipality under that ordinance and this Section. Any amounts
26paid to the trustee as assignee shall be deposited into the

 

 

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1funds or accounts established under the trust agreement, and
2shall be held by the trustee in trust for the benefit of the
3holders of the bonds. The holders of those bonds shall have a
4lien on and a security interest in those funds or accounts
5while the bonds remain outstanding and unpaid. Upon retirement
6of the bonds, the trustee shall pay over any excess amounts
7held to the municipality for deposit in the special tax
8allocation fund.
9    When the redevelopment projects costs, including without
10limitation all municipal obligations financing redevelopment
11project costs incurred under this Law, have been paid, all
12surplus funds then remaining in the special tax allocation fund
13shall be distributed by being paid by the municipal treasurer
14to the municipality and the county collector; first to the
15municipality in direct proportion to the tax incremental
16revenue received from the municipality, but not to exceed the
17total incremental revenue received from the municipality,
18minus any annual surplus distribution of incremental revenue
19previously made. Any remaining funds shall be paid to the
20county collector who shall immediately distribute that payment
21to the taxing districts in the redevelopment project area in
22the same manner and proportion as the most recent distribution
23by the county collector to the affected districts of real
24property taxes from real property situated in the redevelopment
25project area.
26    Upon the payment of all redevelopment project costs,

 

 

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1retirement of obligations and the distribution of any excess
2moneys under this Section, the municipality shall adopt an
3ordinance dissolving the special tax allocation fund for the
4redevelopment project area and terminating the designation of
5the redevelopment project area as a redevelopment project area.
6Thereafter the tax levies of taxing districts shall be
7extended, collected and distributed in the same manner
8applicable before the adoption of tax increment allocation
9financing. Municipality shall notify affected taxing districts
10prior to November if the redevelopment project area is to be
11terminated by December 31 of that same year.
12    Nothing in this Section shall be construed as relieving
13property in a redevelopment project area from being assessed as
14provided in the Property Tax Code or as relieving owners of
15that property from paying a uniform rate of taxes, as required
16by Section 4 of Article IX of the Illinois Constitution.
17(Source: P.A. 91-474, eff. 11-1-99.)
 
18    Section 40. The Economic Development Project Area Tax
19Increment Allocation Act of 1995 is amended by changing Section
2050 as follows:
 
21    (65 ILCS 110/50)
22    Sec. 50. Special tax allocation fund.
23    (a) If a county clerk has certified the "total initial
24equalized assessed value" of the taxable real property within

 

 

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1an economic development project area in the manner provided in
2Section 45, each year after the date of the certification by
3the county clerk of the "total initial equalized assessed
4value", until economic development project costs and all
5municipal obligations financing economic development project
6costs have been paid, the ad valorem taxes, if any, arising
7from the levies upon the taxable real property in the economic
8development project area by taxing districts and tax rates
9determined in the manner provided in subsection (b) of Section
1045 shall be divided as follows:
11        (1) That portion of the taxes levied upon each taxable
12    lot, block, tract, or parcel of real property that is
13    attributable to the lower of the current equalized assessed
14    value or the initial equalized assessed value of each
15    taxable lot, block, tract, or parcel of real property
16    existing at the time tax increment financing was adopted
17    shall be allocated to (and when collected shall be paid by
18    the county collector to) the respective affected taxing
19    districts in the manner required by law in the absence of
20    the adoption of tax increment allocation financing.
21        (2) That portion, if any, of the taxes that is
22    attributable to the increase in the current equalized
23    assessed valuation of each taxable lot, block, tract, or
24    parcel of real property in the economic development project
25    area, over and above the initial equalized assessed value
26    of each property existing at the time tax increment

 

 

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1    financing was adopted, shall be allocated to (and when
2    collected shall be paid to) the municipal treasurer, who
3    shall deposit the taxes into a special fund (called the
4    special tax allocation fund of the municipality) for the
5    purpose of paying economic development project costs and
6    obligations incurred in the payment of those costs.
7    (b) The municipality, by an ordinance adopting tax
8increment allocation financing, may pledge the monies in and to
9be deposited into the special tax allocation fund for the
10payment of obligations issued under this Act and for the
11payment of economic development project costs. No part of the
12current equalized assessed valuation of each property in the
13economic development project area attributable to any increase
14above the total initial equalized assessed value of those
15properties shall be used in calculating the general State
16school aid formula under Section 18-8 of the School Code or the
17evidence-based funding formula under Section 18-8.15 of the
18School Code, until all economic development projects costs have
19been paid as provided for in this Section.
20    (c) When the economic development projects costs,
21including without limitation all municipal obligations
22financing economic development project costs incurred under
23this Act, have been paid, all surplus monies then remaining in
24the special tax allocation fund shall be distributed by being
25paid by the municipal treasurer to the county collector, who
26shall immediately pay the monies to the taxing districts having

 

 

HB2808- 109 -LRB100 11017 NHT 21256 b

1taxable property in the economic development project area in
2the same manner and proportion as the most recent distribution
3by the county collector to those taxing districts of real
4property taxes from real property in the economic development
5project area.
6    (d) Upon the payment of all economic development project
7costs, retirement of obligations, and distribution of any
8excess monies under this Section and not later than 23 years
9from the date of the adoption of the ordinance establishing the
10economic development project area, the municipality shall
11adopt an ordinance dissolving the special tax allocation fund
12for the economic development project area and terminating the
13designation of the economic development project area as an
14economic development project area. Thereafter, the rates of the
15taxing districts shall be extended and taxes shall be levied,
16collected, and distributed in the manner applicable in the
17absence of the adoption of tax increment allocation financing.
18    (e) Nothing in this Section shall be construed as relieving
19property in the economic development project areas from being
20assessed as provided in the Property Tax Code or as relieving
21owners or lessees of that property from paying a uniform rate
22of taxes as required by Section 4 of Article IX of the Illinois
23Constitution.
24(Source: P.A. 98-463, eff. 8-16-13.)
 
25    Section 45. The School Code is amended by changing Sections

 

 

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11A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20, 1F-20,
21F-62, 1H-20, 1H-70, 2-3.33, 2-3.51.5, 2-3.66, 2-3.66b,
32-3.84, 2-3.109a, 3-14.21, 7-14A, 10-19, 10-22.5a, 10-22.20,
410-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50, 13B-50.10,
513B-50.15, 14-7.02, 14-7.02b, 14-13.01, 14C-1, 14C-12, 17-1,
617-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10,
718-9, 18-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5, 34-2.3, 34-18,
834-18.30, and 34-43.1 and by adding Sections 17-3.6 and 18-8.15
9as follows:
 
10    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
11    Sec. 1A-8. Powers of the Board in Assisting Districts
12Deemed in Financial Difficulties. To promote the financial
13integrity of school districts, the State Board of Education
14shall be provided the necessary powers to promote sound
15financial management and continue operation of the public
16schools.
17    (a) The State Superintendent of Education may require a
18school district, including any district subject to Article 34A
19of this Code, to share financial information relevant to a
20proper investigation of the district's financial condition and
21the delivery of appropriate State financial, technical, and
22consulting services to the district if the district (i) has
23been designated, through the State Board of Education's School
24District Financial Profile System, as on financial warning or
25financial watch status, (ii) has failed to file an annual

 

 

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1financial report, annual budget, deficit reduction plan, or
2other financial information as required by law, (iii) has been
3identified, through the district's annual audit or other
4financial and management information, as in serious financial
5difficulty in the current or next school year, or (iv) is
6determined to be likely to fail to fully meet any regularly
7scheduled, payroll-period obligations when due or any debt
8service payments when due or both. In addition to financial,
9technical, and consulting services provided by the State Board
10of Education, at the request of a school district, the State
11Superintendent may provide for an independent financial
12consultant to assist the district review its financial
13condition and options.
14    (b) The State Board of Education, after proper
15investigation of a district's financial condition, may certify
16that a district, including any district subject to Article 34A,
17is in financial difficulty when any of the following conditions
18occur:
19        (1) The district has issued school or teacher orders
20    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
21    of this Code.
22        (2) The district has issued tax anticipation warrants
23    or tax anticipation notes in anticipation of a second
24    year's taxes when warrants or notes in anticipation of
25    current year taxes are still outstanding, as authorized by
26    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has

 

 

HB2808- 112 -LRB100 11017 NHT 21256 b

1    issued short-term debt against 2 future revenue sources,
2    such as, but not limited to, tax anticipation warrants and
3    general State aid or evidence-based funding Aid
4    certificates or tax anticipation warrants and revenue
5    anticipation notes.
6        (3) The district has for 2 consecutive years shown an
7    excess of expenditures and other financing uses over
8    revenues and other financing sources and beginning fund
9    balances on its annual financial report for the aggregate
10    totals of the Educational, Operations and Maintenance,
11    Transportation, and Working Cash Funds.
12        (4) The district refuses to provide financial
13    information or cooperate with the State Superintendent in
14    an investigation of the district's financial condition.
15        (5) The district is likely to fail to fully meet any
16    regularly scheduled, payroll-period obligations when due
17    or any debt service payments when due or both.
18    No school district shall be certified by the State Board of
19Education to be in financial difficulty solely by reason of any
20of the above circumstances arising as a result of (i) the
21failure of the county to make any distribution of property tax
22money due the district at the time such distribution is due or
23(ii) the failure of this State to make timely payments of
24general State aid, evidence-based funding, or any of the
25mandated categoricals; or if the district clearly demonstrates
26to the satisfaction of the State Board of Education at the time

 

 

HB2808- 113 -LRB100 11017 NHT 21256 b

1of its determination that such condition no longer exists. If
2the State Board of Education certifies that a district in a
3city with 500,000 inhabitants or more is in financial
4difficulty, the State Board shall so notify the Governor and
5the Mayor of the city in which the district is located. The
6State Board of Education may require school districts certified
7in financial difficulty, except those districts subject to
8Article 34A, to develop, adopt and submit a financial plan
9within 45 days after certification of financial difficulty. The
10financial plan shall be developed according to guidelines
11presented to the district by the State Board of Education
12within 14 days of certification. Such guidelines shall address
13the specific nature of each district's financial difficulties.
14Any proposed budget of the district shall be consistent with
15the financial plan submitted to and approved by the State Board
16of Education.
17    A district certified to be in financial difficulty, other
18than a district subject to Article 34A, shall report to the
19State Board of Education at such times and in such manner as
20the State Board may direct, concerning the district's
21compliance with each financial plan. The State Board may review
22the district's operations, obtain budgetary data and financial
23statements, require the district to produce reports, and have
24access to any other information in the possession of the
25district that it deems relevant. The State Board may issue
26recommendations or directives within its powers to the district

 

 

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1to assist in compliance with the financial plan. The district
2shall produce such budgetary data, financial statements,
3reports and other information and comply with such directives.
4If the State Board of Education determines that a district has
5failed to comply with its financial plan, the State Board of
6Education may rescind approval of the plan and appoint a
7Financial Oversight Panel for the district as provided in
8Section 1B-4. This action shall be taken only after the
9district has been given notice and an opportunity to appear
10before the State Board of Education to discuss its failure to
11comply with its financial plan.
12    No bonds, notes, teachers orders, tax anticipation
13warrants or other evidences of indebtedness shall be issued or
14sold by a school district or be legally binding upon or
15enforceable against a local board of education of a district
16certified to be in financial difficulty unless and until the
17financial plan required under this Section has been approved by
18the State Board of Education.
19    Any financial profile compiled and distributed by the State
20Board of Education in Fiscal Year 2009 or any fiscal year
21thereafter shall incorporate such adjustments as may be needed
22in the profile scores to reflect the financial effects of the
23inability or refusal of the State of Illinois to make timely
24disbursements of any general State aid, evidence-based
25funding, or mandated categorical aid payments due school
26districts or to fully reimburse school districts for mandated

 

 

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1categorical programs pursuant to reimbursement formulas
2provided in this School Code.
3(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
497-429, eff. 8-16-11.)
 
5    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
6    Sec. 1B-5. When a petition for emergency financial
7assistance for a school district is allowed by the State Board
8under Section 1B-4, the State Superintendent shall within 10
9days thereafter appoint 3 members to serve at the State
10Superintendent's pleasure on a Financial Oversight Panel for
11the district. The State Superintendent shall designate one of
12the members of the Panel to serve as its Chairman. In the event
13of vacancy or resignation the State Superintendent shall
14appoint a successor within 10 days of receiving notice thereof.
15    Members of the Panel shall be selected primarily on the
16basis of their experience and education in financial
17management, with consideration given to persons knowledgeable
18in education finance. A member of the Panel may not be a board
19member or employee of the district for which the Panel is
20constituted, nor may a member have a direct financial interest
21in that district.
22    Panel members shall serve without compensation, but may be
23reimbursed for travel and other necessary expenses incurred in
24the performance of their official duties by the State Board.
25The amount reimbursed Panel members for their expenses shall be

 

 

HB2808- 116 -LRB100 11017 NHT 21256 b

1charged to the school district as part of any emergency
2financial assistance and incorporated as a part of the terms
3and conditions for repayment of such assistance or shall be
4deducted from the district's general State aid or
5evidence-based funding as provided in Section 1B-8.
6    The first meeting of the Panel shall be held at the call of
7the Chairman. The Panel may elect such other officers as it
8deems appropriate. The Panel shall prescribe the times and
9places for its meetings and the manner in which regular and
10special meetings may be called, and shall comply with the Open
11Meetings Act.
12    Two members of the Panel shall constitute a quorum, and the
13affirmative vote of 2 members shall be necessary for any
14decision or action to be taken by the Panel.
15    The Panel and the State Superintendent shall cooperate with
16each other in the exercise of their respective powers. The
17Panel shall report not later than September 1 annually to the
18State Board and the State Superintendent with respect to its
19activities and the condition of the school district for the
20previous fiscal year.
21    Any Financial Oversight Panel established under this
22Article shall remain in existence for not less than 3 years nor
23more than 10 years from the date the State Board grants the
24petition under Section 1B-4. If after 3 years the school
25district has repaid all of its obligations resulting from
26emergency State financial assistance provided under this

 

 

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1Article and has improved its financial situation, the board of
2education may, not more frequently than once in any 12 month
3period, petition the State Board to dissolve the Financial
4Oversight Panel, terminate the oversight responsibility, and
5remove the district's certification under Section 1A-8 as a
6district in financial difficulty. In acting on such a petition
7the State Board shall give additional weight to the
8recommendations of the State Superintendent and the Financial
9Oversight Panel.
10(Source: P.A. 88-618, eff. 9-9-94.)
 
11    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
12    Sec. 1B-6. General powers. The purpose of the Financial
13Oversight Panel shall be to exercise financial control over the
14board of education, and, when approved by the State Board and
15the State Superintendent of Education, to furnish financial
16assistance so that the board can provide public education
17within the board's jurisdiction while permitting the board to
18meet its obligations to its creditors and the holders of its
19notes and bonds. Except as expressly limited by this Article,
20the Panel shall have all powers necessary to meet its
21responsibilities and to carry out its purposes and the purposes
22of this Article, including, but not limited to, the following
23powers:
24    (a) to sue and be sued;
25    (b) to provide for its organization and internal

 

 

HB2808- 118 -LRB100 11017 NHT 21256 b

1management;
2    (c) to appoint a Financial Administrator to serve as the
3chief executive officer of the Panel. The Financial
4Administrator may be an individual, partnership, corporation,
5including an accounting firm, or other entity determined by the
6Panel to be qualified to serve; and to appoint other officers,
7agents, and employees of the Panel, define their duties and
8qualifications and fix their compensation and employee
9benefits;
10    (d) to approve the local board of education appointments to
11the positions of treasurer in a Class I county school unit and
12in each school district which forms a part of a Class II county
13school unit but which no longer is subject to the jurisdiction
14and authority of a township treasurer or trustees of schools of
15a township because the district has withdrawn from the
16jurisdiction and authority of the township treasurer and the
17trustees of schools of the township or because those offices
18have been abolished as provided in subsection (b) or (c) of
19Section 5-1, and chief school business official, if such
20official is not the superintendent of the district. Either the
21board or the Panel may remove such treasurer or chief school
22business official;
23    (e) to approve any and all bonds, notes, teachers orders,
24tax anticipation warrants, and other evidences of indebtedness
25prior to issuance or sale by the school district; and
26notwithstanding any other provision of The School Code, as now

 

 

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1or hereafter amended, no bonds, notes, teachers orders, tax
2anticipation warrants or other evidences of indebtedness shall
3be issued or sold by the school district or be legally binding
4upon or enforceable against the local board of education unless
5and until the approval of the Panel has been received;
6    (f) to approve all property tax levies of the school
7district and require adjustments thereto as the Panel deems
8necessary or advisable;
9    (g) to require and approve a school district financial
10plan;
11    (h) to approve and require revisions of the school district
12budget;
13    (i) to approve all contracts and other obligations as the
14Panel deems necessary and appropriate;
15    (j) to authorize emergency State financial assistance,
16including requirements regarding the terms and conditions of
17repayment of such assistance, and to require the board of
18education to levy a separate local property tax, subject to the
19limitations of Section 1B-8, sufficient to repay such
20assistance consistent with the terms and conditions of
21repayment and the district's approved financial plan and
22budget;
23    (k) to request the regional superintendent to make
24appointments to fill all vacancies on the local school board as
25provided in Section 10-10;
26    (l) to recommend dissolution or reorganization of the

 

 

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1school district to the General Assembly if in the Panel's
2judgment the circumstances so require;
3    (m) to direct a phased reduction in the oversight
4responsibilities of the Financial Administrator and of the
5Panel as the circumstances permit;
6    (n) to determine the amount of emergency State financial
7assistance to be made available to the school district, and to
8establish an operating budget for the Panel to be supported by
9funds available from such assistance, with the assistance and
10the budget required to be approved by the State Superintendent;
11    (o) to procure insurance against any loss in such amounts
12and from such insurers as it deems necessary;
13    (p) to engage the services of consultants for rendering
14professional and technical assistance and advice on matters
15within the Panel's power;
16    (q) to contract for and to accept any gifts, grants or
17loans of funds or property or financial or other aid in any
18form from the federal government, State government, unit of
19local government, school district or any agency or
20instrumentality thereof, or from any other private or public
21source, and to comply with the terms and conditions thereof;
22    (r) to pay the expenses of its operations based on the
23Panel's budget as approved by the State Superintendent from
24emergency financial assistance funds available to the district
25or from deductions from the district's general State aid or
26evidence-based funding;

 

 

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1    (s) to do any and all things necessary or convenient to
2carry out its purposes and exercise the powers given to the
3Panel by this Article; and
4    (t) to recommend the creation of a school finance authority
5pursuant to Article 1F of this Code.
6(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
7    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
8    Sec. 1B-7. Financial Administrator; Powers and Duties. The
9Financial Administrator appointed by the Financial Oversight
10Panel shall serve as the Panel's chief executive officer. The
11Financial Administrator shall exercise the powers and duties
12required by the Panel, including but not limited to the
13following:
14    (a) to provide guidance and recommendations to the local
15board and officials of the school district in developing the
16district's financial plan and budget prior to board action;
17    (b) to direct the local board to reorganize its financial
18accounts, budgetary systems, and internal accounting and
19financial controls, in whatever manner the Panel deems
20appropriate to achieve greater financial responsibility and to
21reduce financial inefficiency, and to provide technical
22assistance to aid the district in accomplishing the
23reorganization;
24    (c) to make recommendations to the Financial Oversight
25Panel concerning the school district's financial plan and

 

 

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1budget, and all other matters within the scope of the Panel's
2authority;
3    (d) to prepare and recommend to the Panel a proposal for
4emergency State financial assistance for the district,
5including recommended terms and conditions of repayment, and an
6operations budget for the Panel to be funded from the emergency
7assistance or from deductions from the district's general State
8aid or evidence-based funding;
9    (e) to require the local board to prepare and submit
10preliminary staffing and budgetary analyses annually prior to
11February 1 in such manner and form as the Financial
12Administrator shall prescribe; and
13    (f) subject to the direction of the Panel, to do all other
14things necessary or convenient to carry out its purposes and
15exercise the powers given to the Panel under this Article.
16(Source: P.A. 88-618, eff. 9-9-94.)
 
17    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
18    Sec. 1B-8. There is created in the State Treasury a special
19fund to be known as the School District Emergency Financial
20Assistance Fund (the "Fund"). The School District Emergency
21Financial Assistance Fund shall consist of appropriations,
22loan repayments, grants from the federal government, and
23donations from any public or private source. Moneys in the Fund
24may be appropriated only to the Illinois Finance Authority and
25the State Board for those purposes authorized under this

 

 

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1Article and Articles 1F and 1H of this Code. The appropriation
2may be allocated and expended by the State Board for
3contractual services to provide technical assistance or
4consultation to school districts to assess their financial
5condition and to Financial Oversight Panels that petition for
6emergency financial assistance grants. The Illinois Finance
7Authority may provide loans to school districts which are the
8subject of an approved petition for emergency financial
9assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
10Neither the State Board of Education nor the Illinois Finance
11Authority may collect any fees for providing these services.
12    From the amount allocated to each such school district
13under this Article the State Board shall identify a sum
14sufficient to cover all approved costs of the Financial
15Oversight Panel established for the respective school
16district. If the State Board and State Superintendent of
17Education have not approved emergency financial assistance in
18conjunction with the appointment of a Financial Oversight
19Panel, the Panel's approved costs shall be paid from deductions
20from the district's general State aid or evidence-based
21funding.
22    The Financial Oversight Panel may prepare and file with the
23State Superintendent a proposal for emergency financial
24assistance for the school district and for its operations
25budget. No expenditures from the Fund shall be authorized by
26the State Superintendent until he or she has approved the

 

 

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1request of the Panel, either as submitted or in such lesser
2amount determined by the State Superintendent.
3    The maximum amount of an emergency financial assistance
4loan which may be allocated to any school district under this
5Article, including moneys necessary for the operations of the
6Panel, shall not exceed $4,000 times the number of pupils
7enrolled in the school district during the school year ending
8June 30 prior to the date of approval by the State Board of the
9petition for emergency financial assistance, as certified to
10the local board and the Panel by the State Superintendent. An
11emergency financial assistance grant shall not exceed $1,000
12times the number of such pupils. A district may receive both a
13loan and a grant.
14    The payment of an emergency State financial assistance
15grant or loan shall be subject to appropriation by the General
16Assembly. Payment of the emergency State financial assistance
17loan is subject to the applicable provisions of the Illinois
18Finance Authority Act. Emergency State financial assistance
19allocated and paid to a school district under this Article may
20be applied to any fund or funds from which the local board of
21education of that district is authorized to make expenditures
22by law.
23    Any emergency financial assistance grant proposed by the
24Financial Oversight Panel and approved by the State
25Superintendent may be paid in its entirety during the initial
26year of the Panel's existence or spread in equal or declining

 

 

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1amounts over a period of years not to exceed the period of the
2Panel's existence. An emergency financial assistance loan
3proposed by the Financial Oversight Panel and approved by the
4Illinois Finance Authority may be paid in its entirety during
5the initial year of the Panel's existence or spread in equal or
6declining amounts over a period of years not to exceed the
7period of the Panel's existence. All loans made by the Illinois
8Finance Authority for a school district shall be required to be
9repaid, with simple interest over the term of the loan at a
10rate equal to 50% of the one-year Constant Maturity Treasury
11(CMT) yield as last published by the Board of Governors of the
12Federal Reserve System before the date on which the district's
13loan is approved by the Illinois Finance Authority, not later
14than the date the Financial Oversight Panel ceases to exist.
15The Panel shall establish and the Illinois Finance Authority
16shall approve the terms and conditions, including the schedule,
17of repayments. The schedule shall provide for repayments
18commencing July 1 of each year or upon each fiscal year's
19receipt of moneys from a tax levy for emergency financial
20assistance. Repayment shall be incorporated into the annual
21budget of the school district and may be made from any fund or
22funds of the district in which there are moneys available. An
23emergency financial assistance loan to the Panel or district
24shall not be considered part of the calculation of a district's
25debt for purposes of the limitation specified in Section 19-1
26of this Code. Default on repayment is subject to the Illinois

 

 

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1Grant Funds Recovery Act. When moneys are repaid as provided
2herein they shall not be made available to the local board for
3further use as emergency financial assistance under this
4Article at any time thereafter. All repayments required to be
5made by a school district shall be received by the State Board
6and deposited in the School District Emergency Financial
7Assistance Fund.
8    In establishing the terms and conditions for the repayment
9obligation of the school district the Panel shall annually
10determine whether a separate local property tax levy is
11required. The board of any school district with a tax rate for
12educational purposes for the prior year of less than 120% of
13the maximum rate for educational purposes authorized by Section
1417-2 shall provide for a separate tax levy for emergency
15financial assistance repayment purposes. Such tax levy shall
16not be subject to referendum approval. The amount of the levy
17shall be equal to the amount necessary to meet the annual
18repayment obligations of the district as established by the
19Panel, or 20% of the amount levied for educational purposes for
20the prior year, whichever is less. However, no district shall
21be required to levy the tax if the district's operating tax
22rate as determined under Section 18-8, or 18-8.05, or 18-8.15
23exceeds 200% of the district's tax rate for educational
24purposes for the prior year.
25(Source: P.A. 97-429, eff. 8-16-11.)
 

 

 

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1    (105 ILCS 5/1C-1)
2    Sec. 1C-1. Purpose. The purpose of this Article is to
3permit greater flexibility and efficiency in the distribution
4and use of certain State funds available to local education
5agencies for the improvement of the quality of educational
6services pursuant to locally established priorities.
7    Through fiscal year 2017, this This Article does not apply
8to school districts having a population in excess of 500,000
9inhabitants.
10(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1189-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
12    (105 ILCS 5/1C-2)
13    Sec. 1C-2. Block grants.
14    (a) For fiscal year 1999, and each fiscal year thereafter,
15the State Board of Education shall award to school districts
16block grants as described in subsection (c). The State Board of
17Education may adopt rules and regulations necessary to
18implement this Section. In accordance with Section 2-3.32, all
19state block grants are subject to an audit. Therefore, block
20grant receipts and block grant expenditures shall be recorded
21to the appropriate fund code.
22    (b) (Blank).
23    (c) An Early Childhood Education Block Grant shall be
24created by combining the following programs: Preschool
25Education, Parental Training and Prevention Initiative. These

 

 

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1funds shall be distributed to school districts and other
2entities on a competitive basis, except that the State Board of
3Education shall award to a school district having a population
4exceeding 500,000 inhabitants 37% of the funds in each fiscal
5year. Not less than 14% of the Early Childhood Education Block
6Grant allocation of funds shall be used to fund programs for
7children ages 0-3. Beginning in Fiscal Year 2016, at least 25%
8of any additional Early Childhood Education Block Grant funding
9over and above the previous fiscal year's allocation shall be
10used to fund programs for children ages 0-3. Once the
11percentage of Early Childhood Education Block Grant funding
12allocated to programs for children ages 0-3 reaches 20% of the
13overall Early Childhood Education Block Grant allocation for a
14full fiscal year, thereafter in subsequent fiscal years the
15percentage of Early Childhood Education Block Grant funding
16allocated to programs for children ages 0-3 each fiscal year
17shall remain at least 20% of the overall Early Childhood
18Education Block Grant allocation. However, if, in a given
19fiscal year, the amount appropriated for the Early Childhood
20Education Block Grant is insufficient to increase the
21percentage of the grant to fund programs for children ages 0-3
22without reducing the amount of the grant for existing providers
23of preschool education programs, then the percentage of the
24grant to fund programs for children ages 0-3 may be held steady
25instead of increased.
26(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)
 

 

 

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1    (105 ILCS 5/1D-1)
2    Sec. 1D-1. Block grant funding.
3    (a) For fiscal year 1996 through fiscal year 2017 and each
4fiscal year thereafter, the State Board of Education shall
5award to a school district having a population exceeding
6500,000 inhabitants a general education block grant and an
7educational services block grant, determined as provided in
8this Section, in lieu of distributing to the district separate
9State funding for the programs described in subsections (b) and
10(c). The provisions of this Section, however, do not apply to
11any federal funds that the district is entitled to receive. In
12accordance with Section 2-3.32, all block grants are subject to
13an audit. Therefore, block grant receipts and block grant
14expenditures shall be recorded to the appropriate fund code for
15the designated block grant.
16    (b) The general education block grant shall include the
17following programs: REI Initiative, Summer Bridges, Preschool
18At Risk, K-6 Comprehensive Arts, School Improvement Support,
19Urban Education, Scientific Literacy, Substance Abuse
20Prevention, Second Language Planning, Staff Development,
21Outcomes and Assessment, K-6 Reading Improvement, 7-12
22Continued Reading Improvement, Truants' Optional Education,
23Hispanic Programs, Agriculture Education, Parental Education,
24Prevention Initiative, Report Cards, and Criminal Background
25Investigations. Notwithstanding any other provision of law,

 

 

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1all amounts paid under the general education block grant from
2State appropriations to a school district in a city having a
3population exceeding 500,000 inhabitants shall be appropriated
4and expended by the board of that district for any of the
5programs included in the block grant or any of the board's
6lawful purposes.
7    (c) The educational services block grant shall include the
8following programs: Regular and Vocational Transportation,
9State Lunch and Free Breakfast Program, Special Education
10(Personnel, Transportation, Orphanage, Private Tuition),
11funding for children requiring special education services,
12Summer School, Educational Service Centers, and
13Administrator's Academy. This subsection (c) does not relieve
14the district of its obligation to provide the services required
15under a program that is included within the educational
16services block grant. It is the intention of the General
17Assembly in enacting the provisions of this subsection (c) to
18relieve the district of the administrative burdens that impede
19efficiency and accompany single-program funding. The General
20Assembly encourages the board to pursue mandate waivers
21pursuant to Section 2-3.25g.
22    The funding program included in the educational services
23block grant for funding for children requiring special
24education services in each fiscal year shall be treated in that
25fiscal year as a payment to the school district in respect of
26services provided or costs incurred in the prior fiscal year,

 

 

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1calculated in each case as provided in this Section. Nothing in
2this Section shall change the nature of payments for any
3program that, apart from this Section, would be or, prior to
4adoption or amendment of this Section, was on the basis of a
5payment in a fiscal year in respect of services provided or
6costs incurred in the prior fiscal year, calculated in each
7case as provided in this Section.
8    (d) For fiscal year 1996 through fiscal year 2017 and each
9fiscal year thereafter, the amount of the district's block
10grants shall be determined as follows: (i) with respect to each
11program that is included within each block grant, the district
12shall receive an amount equal to the same percentage of the
13current fiscal year appropriation made for that program as the
14percentage of the appropriation received by the district from
15the 1995 fiscal year appropriation made for that program, and
16(ii) the total amount that is due the district under the block
17grant shall be the aggregate of the amounts that the district
18is entitled to receive for the fiscal year with respect to each
19program that is included within the block grant that the State
20Board of Education shall award the district under this Section
21for that fiscal year. In the case of the Summer Bridges
22program, the amount of the district's block grant shall be
23equal to 44% of the amount of the current fiscal year
24appropriation made for that program.
25    (e) The district is not required to file any application or
26other claim in order to receive the block grants to which it is

 

 

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1entitled under this Section. The State Board of Education shall
2make payments to the district of amounts due under the
3district's block grants on a schedule determined by the State
4Board of Education.
5    (f) A school district to which this Section applies shall
6report to the State Board of Education on its use of the block
7grants in such form and detail as the State Board of Education
8may specify. In addition, the report must include the following
9description for the district, which must also be reported to
10the General Assembly: block grant allocation and expenditures
11by program; population and service levels by program; and
12administrative expenditures by program. The State Board of
13Education shall ensure that the reporting requirements for the
14district are the same as for all other school districts in this
15State.
16    (g) Through fiscal year 2017, this This paragraph provides
17for the treatment of block grants under Article 1C for purposes
18of calculating the amount of block grants for a district under
19this Section. Those block grants under Article 1C are, for this
20purpose, treated as included in the amount of appropriation for
21the various programs set forth in paragraph (b) above. The
22appropriation in each current fiscal year for each block grant
23under Article 1C shall be treated for these purposes as
24appropriations for the individual program included in that
25block grant. The proportion of each block grant so allocated to
26each such program included in it shall be the proportion which

 

 

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1the appropriation for that program was of all appropriations
2for such purposes now in that block grant, in fiscal 1995.
3    Payments to the school district under this Section with
4respect to each program for which payments to school districts
5generally, as of the date of this amendatory Act of the 92nd
6General Assembly, are on a reimbursement basis shall continue
7to be made to the district on a reimbursement basis, pursuant
8to the provisions of this Code governing those programs.
9    (h) Notwithstanding any other provision of law, any school
10district receiving a block grant under this Section may
11classify all or a portion of the funds that it receives in a
12particular fiscal year from any block grant authorized under
13this Code or from general State aid pursuant to Section 18-8.05
14of this Code (other than supplemental general State aid) as
15funds received in connection with any funding program for which
16it is entitled to receive funds from the State in that fiscal
17year (including, without limitation, any funding program
18referred to in subsection (c) of this Section), regardless of
19the source or timing of the receipt. The district may not
20classify more funds as funds received in connection with the
21funding program than the district is entitled to receive in
22that fiscal year for that program. Any classification by a
23district must be made by a resolution of its board of
24education. The resolution must identify the amount of any block
25grant or general State aid to be classified under this
26subsection (h) and must specify the funding program to which

 

 

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1the funds are to be treated as received in connection
2therewith. This resolution is controlling as to the
3classification of funds referenced therein. A certified copy of
4the resolution must be sent to the State Superintendent of
5Education. The resolution shall still take effect even though a
6copy of the resolution has not been sent to the State
7Superintendent of Education in a timely manner. No
8classification under this subsection (h) by a district shall
9affect the total amount or timing of money the district is
10entitled to receive under this Code. No classification under
11this subsection (h) by a district shall in any way relieve the
12district from or affect any requirements that otherwise would
13apply with respect to the block grant as provided in this
14Section, including any accounting of funds by source, reporting
15expenditures by original source and purpose, reporting
16requirements, or requirements of provision of services.
17(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1897-813, eff. 7-13-12.)
 
19    (105 ILCS 5/1E-20)
20    (This Section scheduled to be repealed in accordance with
21105 ILCS 5/1E-165)
22    Sec. 1E-20. Members of Authority; meetings.
23    (a) When a petition for a School Finance Authority is
24allowed by the State Board under Section 1E-15 of this Code,
25the State Superintendent shall within 10 days thereafter

 

 

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1appoint 5 members to serve on a School Finance Authority for
2the district. Of the initial members, 2 shall be appointed to
3serve a term of 2 years and 3 shall be appointed to serve a term
4of 3 years. Thereafter, each member shall serve for a term of 3
5years and until his or her successor has been appointed. The
6State Superintendent shall designate one of the members of the
7Authority to serve as its Chairperson. In the event of vacancy
8or resignation, the State Superintendent shall, within 10 days
9after receiving notice, appoint a successor to serve out that
10member's term. The State Superintendent may remove a member for
11incompetence, malfeasance, neglect of duty, or other just
12cause.
13    Members of the Authority shall be selected primarily on the
14basis of their experience and education in financial
15management, with consideration given to persons knowledgeable
16in education finance. Two members of the Authority shall be
17residents of the school district that the Authority serves. A
18member of the Authority may not be a member of the district's
19school board or an employee of the district nor may a member
20have a direct financial interest in the district.
21    Authority members shall serve without compensation, but
22may be reimbursed by the State Board for travel and other
23necessary expenses incurred in the performance of their
24official duties. Unless paid from bonds issued under Section
251E-65 of this Code, the amount reimbursed members for their
26expenses shall be charged to the school district as part of any

 

 

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1emergency financial assistance and incorporated as a part of
2the terms and conditions for repayment of the assistance or
3shall be deducted from the district's general State aid or
4evidence-based funding as provided in Section 1B-8 of this
5Code.
6    The Authority may elect such officers as it deems
7appropriate.
8    (b) The first meeting of the Authority shall be held at the
9call of the Chairperson. The Authority shall prescribe the
10times and places for its meetings and the manner in which
11regular and special meetings may be called and shall comply
12with the Open Meetings Act.
13    Three members of the Authority shall constitute a quorum.
14When a vote is taken upon any measure before the Authority, a
15quorum being present, a majority of the votes of the members
16voting on the measure shall determine the outcome.
17(Source: P.A. 92-547, eff. 6-13-02.)
 
18    (105 ILCS 5/1F-20)
19(This Section scheduled to be repealed in accordance with 105
20ILCS 5/1F-165)
21    Sec. 1F-20. Members of Authority; meetings.
22    (a) Upon establishment of a School Finance Authority under
23Section 1F-15 of this Code, the State Superintendent shall
24within 15 days thereafter appoint 5 members to serve on a
25School Finance Authority for the district. Of the initial

 

 

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1members, 2 shall be appointed to serve a term of 2 years and 3
2shall be appointed to serve a term of 3 years. Thereafter, each
3member shall serve for a term of 3 years and until his or her
4successor has been appointed. The State Superintendent shall
5designate one of the members of the Authority to serve as its
6Chairperson. In the event of vacancy or resignation, the State
7Superintendent shall, within 10 days after receiving notice,
8appoint a successor to serve out that member's term. The State
9Superintendent may remove a member for incompetence,
10malfeasance, neglect of duty, or other just cause.
11    Members of the Authority shall be selected primarily on the
12basis of their experience and education in financial
13management, with consideration given to persons knowledgeable
14in education finance. Two members of the Authority shall be
15residents of the school district that the Authority serves. A
16member of the Authority may not be a member of the district's
17school board or an employee of the district nor may a member
18have a direct financial interest in the district.
19    Authority members shall be paid a stipend approved by the
20State Superintendent of not more than $100 per meeting and may
21be reimbursed by the State Board for travel and other necessary
22expenses incurred in the performance of their official duties.
23Unless paid from bonds issued under Section 1F-65 of this Code,
24the amount reimbursed members for their expenses shall be
25charged to the school district as part of any emergency
26financial assistance and incorporated as a part of the terms

 

 

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1and conditions for repayment of the assistance or shall be
2deducted from the district's general State aid or
3evidence-based funding as provided in Section 1B-8 of this
4Code.
5    The Authority may elect such officers as it deems
6appropriate.
7    (b) The first meeting of the Authority shall be held at the
8call of the Chairperson. The Authority shall prescribe the
9times and places for its meetings and the manner in which
10regular and special meetings may be called and shall comply
11with the Open Meetings Act.
12    Three members of the Authority shall constitute a quorum.
13When a vote is taken upon any measure before the Authority, a
14quorum being present, a majority of the votes of the members
15voting on the measure shall determine the outcome.
16(Source: P.A. 94-234, eff. 7-1-06.)
 
17    (105 ILCS 5/1F-62)
18(This Section scheduled to be repealed in accordance with 105
19ILCS 5/1F-165)
20    Sec. 1F-62. School District Emergency Financial Assistance
21Fund; grants and loans.
22    (a) Moneys in the School District Emergency Financial
23Assistance Fund established under Section 1B-8 of this Code may
24be allocated and expended by the State Board as grants to
25provide technical and consulting services to school districts

 

 

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1to assess their financial condition and by the Illinois Finance
2Authority for emergency financial assistance loans to a School
3Finance Authority that petitions for emergency financial
4assistance. An emergency financial assistance loan to a School
5Finance Authority or borrowing from sources other than the
6State shall not be considered as part of the calculation of a
7district's debt for purposes of the limitation specified in
8Section 19-1 of this Code. From the amount allocated to each
9School Finance Authority, the State Board shall identify a sum
10sufficient to cover all approved costs of the School Finance
11Authority. If the State Board and State Superintendent have not
12approved emergency financial assistance in conjunction with
13the appointment of a School Finance Authority, the Authority's
14approved costs shall be paid from deductions from the
15district's general State aid or evidence-based funding.
16    The School Finance Authority may prepare and file with the
17State Superintendent a proposal for emergency financial
18assistance for the school district and for its operations
19budget. No expenditures shall be authorized by the State
20Superintendent until he or she has approved the proposal of the
21School Finance Authority, either as submitted or in such lesser
22amount determined by the State Superintendent.
23    (b) The amount of an emergency financial assistance loan
24that may be allocated to a School Finance Authority under this
25Article, including moneys necessary for the operations of the
26School Finance Authority, and borrowing from sources other than

 

 

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1the State shall not exceed, in the aggregate, $4,000 times the
2number of pupils enrolled in the district during the school
3year ending June 30 prior to the date of approval by the State
4Board of the petition for emergency financial assistance, as
5certified to the school board and the School Finance Authority
6by the State Superintendent. However, this limitation does not
7apply to borrowing by the district secured by amounts levied by
8the district prior to establishment of the School Finance
9Authority. An emergency financial assistance grant shall not
10exceed $1,000 times the number of such pupils. A district may
11receive both a loan and a grant.
12    (c) The payment of a State emergency financial assistance
13grant or loan shall be subject to appropriation by the General
14Assembly. State emergency financial assistance allocated and
15paid to a School Finance Authority under this Article may be
16applied to any fund or funds from which the School Finance
17Authority is authorized to make expenditures by law.
18    (d) Any State emergency financial assistance proposed by
19the School Finance Authority and approved by the State
20Superintendent may be paid in its entirety during the initial
21year of the School Finance Authority's existence or spread in
22equal or declining amounts over a period of years not to exceed
23the period of the School Finance Authority's existence. The
24State Superintendent shall not approve any loan to the School
25Finance Authority unless the School Finance Authority has been
26unable to borrow sufficient funds to operate the district.

 

 

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1    All loan payments made from the School District Emergency
2Financial Assistance Fund to a School Finance Authority shall
3be required to be repaid not later than the date the School
4Finance Authority ceases to exist, with simple interest over
5the term of the loan at a rate equal to 50% of the one-year
6Constant Maturity Treasury (CMT) yield as last published by the
7Board of Governors of the Federal Reserve System before the
8date on which the School Finance Authority's loan is approved
9by the State Board.
10    The School Finance Authority shall establish and the
11Illinois Finance Authority shall approve the terms and
12conditions of the loan, including the schedule of repayments.
13The schedule shall provide for repayments commencing July 1 of
14each year or upon each fiscal year's receipt of moneys from a
15tax levy for emergency financial assistance. Repayment shall be
16incorporated into the annual budget of the district and may be
17made from any fund or funds of the district in which there are
18moneys available. Default on repayment is subject to the
19Illinois Grant Funds Recovery Act. When moneys are repaid as
20provided in this Section, they shall not be made available to
21the School Finance Authority for further use as emergency
22financial assistance under this Article at any time thereafter.
23All repayments required to be made by a School Finance
24Authority shall be received by the State Board and deposited in
25the School District Emergency Financial Assistance Fund.
26    In establishing the terms and conditions for the repayment

 

 

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1obligation of the School Finance Authority, the School Finance
2Authority shall annually determine whether a separate local
3property tax levy is required to meet that obligation. The
4School Finance Authority shall provide for a separate tax levy
5for emergency financial assistance repayment purposes. This
6tax levy shall not be subject to referendum approval. The
7amount of the levy shall not exceed the amount necessary to
8meet the annual emergency financial repayment obligations of
9the district, including principal and interest, as established
10by the School Finance Authority.
11(Source: P.A. 94-234, eff. 7-1-06.)
 
12    (105 ILCS 5/1H-20)
13    Sec. 1H-20. Members of Panel; meetings.
14    (a) Upon establishment of a Financial Oversight Panel under
15Section 1H-15 of this Code, the State Superintendent shall
16within 15 working days thereafter appoint 5 members to serve on
17a Financial Oversight Panel for the district. Members appointed
18to the Panel shall serve at the pleasure of the State
19Superintendent. The State Superintendent shall designate one
20of the members of the Panel to serve as its Chairperson. In the
21event of vacancy or resignation, the State Superintendent
22shall, within 10 days after receiving notice, appoint a
23successor to serve out that member's term.
24    (b) Members of the Panel shall be selected primarily on the
25basis of their experience and education in financial

 

 

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1management, with consideration given to persons knowledgeable
2in education finance. Two members of the Panel shall be
3residents of the school district that the Panel serves. A
4member of the Panel may not be a member of the district's
5school board or an employee of the district nor may a member
6have a direct financial interest in the district.
7    (c) Panel members may be reimbursed by the State Board for
8travel and other necessary expenses incurred in the performance
9of their official duties. The amount reimbursed members for
10their expenses shall be charged to the school district as part
11of any emergency financial assistance and incorporated as a
12part of the terms and conditions for repayment of the
13assistance or shall be deducted from the district's general
14State aid or evidence-based funding as provided in Section
151H-65 of this Code.
16    (d) With the exception of the chairperson, who shall be
17designated as provided in subsection (a) of this Section, the
18Panel may elect such officers as it deems appropriate.
19    (e) The first meeting of the Panel shall be held at the
20call of the Chairperson. The Panel shall prescribe the times
21and places for its meetings and the manner in which regular and
22special meetings may be called and shall comply with the Open
23Meetings Act. The Panel shall also comply with the Freedom of
24Information Act.
25    (f) Three members of the Panel shall constitute a quorum. A
26majority of members present is required to pass a measure.

 

 

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1(Source: P.A. 97-429, eff. 8-16-11.)
 
2    (105 ILCS 5/1H-70)
3    Sec. 1H-70. Tax anticipation warrants, tax anticipation
4notes, revenue anticipation certificates or notes, general
5State aid or evidence-based funding anticipation certificates,
6and lines of credit. With the approval of the State
7Superintendent and provided that the district is unable to
8secure short-term financing after 3 attempts, a Panel shall
9have the same power as a district to do the following:
10        (1) issue tax anticipation warrants under the
11    provisions of Section 17-16 of this Code against taxes
12    levied by either the school board or the Panel pursuant to
13    Section 1H-25 of this Code;
14        (2) issue tax anticipation notes under the provisions
15    of the Tax Anticipation Note Act against taxes levied by
16    either the school board or the Panel pursuant to Section
17    1H-25 of this Code;
18        (3) issue revenue anticipation certificates or notes
19    under the provisions of the Revenue Anticipation Act;
20        (4) issue general State aid or evidence-based funding
21    anticipation certificates under the provisions of Section
22    18-18 of this Code; and
23        (5) establish and utilize lines of credit under the
24    provisions of Section 17-17 of this Code.
25    Tax anticipation warrants, tax anticipation notes, revenue

 

 

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1anticipation certificates or notes, general State aid or
2evidence-based funding anticipation certificates, and lines of
3credit are considered borrowing from sources other than the
4State and are subject to Section 1H-65 of this Code.
5(Source: P.A. 97-429, eff. 8-16-11.)
 
6    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
7    Sec. 2-3.33. Recomputation of claims. To recompute within
83 years from the final date for filing of a claim any claim for
9general State aid reimbursement to any school district and one
10year from the final date for filing of a claim for
11evidence-based funding if the claim has been found to be
12incorrect and to adjust subsequent claims accordingly, and to
13recompute and adjust any such claims within 6 years from the
14final date for filing when there has been an adverse court or
15administrative agency decision on the merits affecting the tax
16revenues of the school district. However, no such adjustment
17shall be made regarding equalized assessed valuation unless the
18district's equalized assessed valuation is changed by greater
19than $250,000 or 2%. Any adjustments for claims recomputed for
20the 2016-2017 school year and prior school years shall be
21applied to the apportionment of evidence-based funding in
22Section 18-8.15 of this Code beginning in the 2017-2018 school
23year and thereafter. However, the recomputation of a claim for
24evidence-based funding for a school district shall not require
25the recomputation of claims for all districts, and the State

 

 

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1Board of Education shall only make recomputations of
2evidence-based funding for those districts where an adjustment
3is required.
4    Except in the case of an adverse court or administrative
5agency decision, no recomputation of a State aid claim shall be
6made pursuant to this Section as a result of a reduction in the
7assessed valuation of a school district from the assessed
8valuation of the district reported to the State Board of
9Education by the Department of Revenue under Section 18-8.05 or
1018-8.15 of this Code unless the requirements of Section 16-15
11of the Property Tax Code and Section 2-3.84 of this Code are
12complied with in all respects.
13    This paragraph applies to all requests for recomputation of
14a general State aid or evidence-based funding claim received
15after June 30, 2003. In recomputing a general State aid or
16evidence-based funding claim that was originally calculated
17using an extension limitation equalized assessed valuation
18under paragraph (3) of subsection (G) of Section 18-8.05 of
19this Code or Section 18-8.15 of this Code, a qualifying
20reduction in equalized assessed valuation shall be deducted
21from the extension limitation equalized assessed valuation
22that was used in calculating the original claim.
23    From the total amount of general State aid or
24evidence-based funding to be provided to districts,
25adjustments as a result of recomputation under this Section
26together with adjustments under Section 2-3.84 must not exceed

 

 

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1$25 million, in the aggregate for all districts under both
2Sections combined, of the general State aid or evidence-based
3funding appropriation in any fiscal year; if necessary, amounts
4shall be prorated among districts. If it is necessary to
5prorate claims under this paragraph, then that portion of each
6prorated claim that is approved but not paid in the current
7fiscal year may be resubmitted as a valid claim in the
8following fiscal year.
9(Source: P.A. 93-845, eff. 7-30-04.)
 
10    (105 ILCS 5/2-3.51.5)
11    Sec. 2-3.51.5. School Safety and Educational Improvement
12Block Grant Program. To improve the level of education and
13safety of students from kindergarten through grade 12 in school
14districts and State-recognized, non-public schools. The State
15Board of Education is authorized to fund a School Safety and
16Educational Improvement Block Grant Program.
17    (1) For school districts, the program shall provide funding
18for school safety, textbooks and software, electronic
19textbooks and the technological equipment necessary to gain
20access to and use electronic textbooks, teacher training and
21curriculum development, school improvements, school report
22cards under Section 10-17a, and criminal history records checks
23under Sections 10-21.9 and 34-18.5. For State-recognized,
24non-public schools, the program shall provide funding for
25secular textbooks and software, criminal history records

 

 

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1checks, and health and safety mandates to the extent that the
2funds are expended for purely secular purposes. A school
3district or laboratory school as defined in Section 18-8, or
418-8.05, or 18-8.15 is not required to file an application in
5order to receive the categorical funding to which it is
6entitled under this Section. Funds for the School Safety and
7Educational Improvement Block Grant Program shall be
8distributed to school districts and laboratory schools based on
9the prior year's best 3 months average daily attendance. Funds
10for the School Safety and Educational Improvement Block Grant
11Program shall be distributed to State-recognized, non-public
12schools based on the average daily attendance figure for the
13previous school year provided to the State Board of Education.
14The State Board of Education shall develop an application that
15requires State-recognized, non-public schools to submit
16average daily attendance figures. A State-recognized,
17non-public school must submit the application and average daily
18attendance figure prior to receiving funds under this Section.
19The State Board of Education shall promulgate rules and
20regulations necessary for the implementation of this program.
21    (2) Distribution of moneys to school districts and
22State-recognized, non-public schools shall be made in 2
23semi-annual installments, one payment on or before October 30,
24and one payment prior to April 30, of each fiscal year.
25    (3) Grants under the School Safety and Educational
26Improvement Block Grant Program shall be awarded provided there

 

 

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1is an appropriation for the program, and funding levels for
2each district shall be prorated according to the amount of the
3appropriation.
4    (4) The provisions of this Section are in the public
5interest, are for the public benefit, and serve secular public
6purposes.
7(Source: P.A. 98-972, eff. 8-15-14.)
 
8    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
9    Sec. 2-3.66. Truants' alternative and optional education
10programs. To establish projects to offer modified
11instructional programs or other services designed to prevent
12students from dropping out of school, including programs
13pursuant to Section 2-3.41, and to serve as a part time or full
14time option in lieu of regular school attendance and to award
15grants to local school districts, educational service regions
16or community college districts from appropriated funds to
17assist districts in establishing such projects. The education
18agency may operate its own program or enter into a contract
19with another not-for-profit entity to implement the program.
20The projects shall allow dropouts, up to and including age 21,
21potential dropouts, including truants, uninvolved, unmotivated
22and disaffected students, as defined by State Board of
23Education rules and regulations, to enroll, as an alternative
24to regular school attendance, in an optional education program
25which may be established by school board policy and is in

 

 

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1conformance with rules adopted by the State Board of Education.
2Truants' Alternative and Optional Education programs funded
3pursuant to this Section shall be planned by a student, the
4student's parents or legal guardians, unless the student is 18
5years or older, and school officials and shall culminate in an
6individualized optional education plan. Such plan shall focus
7on academic or vocational skills, or both, and may include, but
8not be limited to, evening school, summer school, community
9college courses, adult education, preparation courses for high
10school equivalency testing, vocational training, work
11experience, programs to enhance self concept and parenting
12courses. School districts which are awarded grants pursuant to
13this Section shall be authorized to provide day care services
14to children of students who are eligible and desire to enroll
15in programs established and funded under this Section, but only
16if and to the extent that such day care is necessary to enable
17those eligible students to attend and participate in the
18programs and courses which are conducted pursuant to this
19Section. School districts and regional offices of education may
20claim general State aid under Section 18-8.05 or evidence-based
21funding under Section 18-8.15 for students enrolled in truants'
22alternative and optional education programs, provided that
23such students are receiving services that are supplemental to a
24program leading to a high school diploma and are otherwise
25eligible to be claimed for general State aid under Section
2618-8.05 or evidence-based funding under Section 18-8.15, as

 

 

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1applicable.
2(Source: P.A. 98-718, eff. 1-1-15.)
 
3    (105 ILCS 5/2-3.66b)
4    Sec. 2-3.66b. IHOPE Program.
5    (a) There is established the Illinois Hope and Opportunity
6Pathways through Education (IHOPE) Program. The State Board of
7Education shall implement and administer the IHOPE Program. The
8goal of the IHOPE Program is to develop a comprehensive system
9in this State to re-enroll significant numbers of high school
10dropouts in programs that will enable them to earn their high
11school diploma.
12    (b) The IHOPE Program shall award grants, subject to
13appropriation for this purpose, to educational service regions
14and a school district organized under Article 34 of this Code
15from appropriated funds to assist in establishing
16instructional programs and other services designed to
17re-enroll high school dropouts. From any funds appropriated for
18the IHOPE Program, the State Board of Education may use up to
195% for administrative costs, including the performance of a
20program evaluation and the hiring of staff to implement and
21administer the program.
22    The IHOPE Program shall provide incentive grant funds for
23regional offices of education and a school district organized
24under Article 34 of this Code to develop partnerships with
25school districts, public community colleges, and community

 

 

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1groups to build comprehensive plans to re-enroll high school
2dropouts in their regions or districts.
3    Programs funded through the IHOPE Program shall allow high
4school dropouts, up to and including age 21 notwithstanding
5Section 26-2 of this Code, to re-enroll in an educational
6program in conformance with rules adopted by the State Board of
7Education. Programs may include without limitation
8comprehensive year-round programming, evening school, summer
9school, community college courses, adult education, vocational
10training, work experience, programs to enhance self-concept,
11and parenting courses. Any student in the IHOPE Program who
12wishes to earn a high school diploma must meet the
13prerequisites to receiving a high school diploma specified in
14Section 27-22 of this Code and any other graduation
15requirements of the student's district of residence. Any
16student who successfully completes the requirements for his or
17her graduation shall receive a diploma identifying the student
18as graduating from his or her district of residence.
19    (c) In order to be eligible for funding under the IHOPE
20Program, an interested regional office of education or a school
21district organized under Article 34 of this Code shall develop
22an IHOPE Plan to be approved by the State Board of Education.
23The State Board of Education shall develop rules for the IHOPE
24Program that shall set forth the requirements for the
25development of the IHOPE Plan. Each Plan shall involve school
26districts, public community colleges, and key community

 

 

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1programs that work with high school dropouts located in an
2educational service region or the City of Chicago before the
3Plan is sent to the State Board for approval. No funds may be
4distributed to a regional office of education or a school
5district organized under Article 34 of this Code until the
6State Board has approved the Plan.
7    (d) A regional office of education or a school district
8organized under Article 34 of this Code may operate its own
9program funded by the IHOPE Program or enter into a contract
10with other not-for-profit entities, including school
11districts, public community colleges, and not-for-profit
12community-based organizations, to operate a program.
13    A regional office of education or a school district
14organized under Article 34 of this Code that receives an IHOPE
15grant from the State Board of Education may provide funds under
16a sub-grant, as specified in the IHOPE Plan, to other
17not-for-profit entities to provide services according to the
18IHOPE Plan that was developed. These other entities may include
19school districts, public community colleges, or not-for-profit
20community-based organizations or a cooperative partnership
21among these entities.
22    (e) In order to distribute funding based upon the need to
23ensure delivery of programs that will have the greatest impact,
24IHOPE Program funding must be distributed based upon the
25proportion of dropouts in the educational service region or
26school district, in the case of a school district organized

 

 

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1under Article 34 of this Code, to the total number of dropouts
2in this State. This formula shall employ the dropout data
3provided by school districts to the State Board of Education.
4    A regional office of education or a school district
5organized under Article 34 of this Code may claim State aid
6under Section 18-8.05 or 18-8.15 of this Code for students
7enrolled in a program funded by the IHOPE Program, provided
8that the State Board of Education has approved the IHOPE Plan
9and that these students are receiving services that are meeting
10the requirements of Section 27-22 of this Code for receipt of a
11high school diploma and are otherwise eligible to be claimed
12for general State aid under Section 18-8.05 of this Code or
13evidence-based funding under Section 18-8.15 of this Code,
14including provisions related to the minimum number of days of
15pupil attendance pursuant to Section 10-19 of this Code and the
16minimum number of daily hours of school work and any exceptions
17thereto as defined by the State Board of Education in rules.
18    (f) IHOPE categories of programming may include the
19following:
20        (1) Full-time programs that are comprehensive,
21    year-round programs.
22        (2) Part-time programs combining work and study
23    scheduled at various times that are flexible to the needs
24    of students.
25        (3) Online programs and courses in which students take
26    courses and complete on-site, supervised tests that

 

 

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1    measure the student's mastery of a specific course needed
2    for graduation. Students may take courses online and earn
3    credit or students may prepare to take supervised tests for
4    specific courses for credit leading to receipt of a high
5    school diploma.
6        (4) Dual enrollment in which students attend high
7    school classes in combination with community college
8    classes or students attend community college classes while
9    simultaneously earning high school credit and eventually a
10    high school diploma.
11    (g) In order to have successful comprehensive programs
12re-enrolling and graduating low-skilled high school dropouts,
13programs funded through the IHOPE Program shall include all of
14the following components:
15        (1) Small programs (70 to 100 students) at a separate
16    school site with a distinct identity. Programs may be
17    larger with specific need and justification, keeping in
18    mind that it is crucial to keep programs small to be
19    effective.
20        (2) Specific performance-based goals and outcomes and
21    measures of enrollment, attendance, skills, credits,
22    graduation, and the transition to college, training, and
23    employment.
24        (3) Strong, experienced leadership and teaching staff
25    who are provided with ongoing professional development.
26        (4) Voluntary enrollment.

 

 

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1        (5) High standards for student learning, integrating
2    work experience, and education, including during the
3    school year and after school, and summer school programs
4    that link internships, work, and learning.
5        (6) Comprehensive programs providing extensive support
6    services.
7        (7) Small teams of students supported by full-time paid
8    mentors who work to retain and help those students
9    graduate.
10        (8) A comprehensive technology learning center with
11    Internet access and broad-based curriculum focusing on
12    academic and career subject areas.
13        (9) Learning opportunities that incorporate action
14    into study.
15    (h) Programs funded through the IHOPE Program must report
16data to the State Board of Education as requested. This
17information shall include, but is not limited to, student
18enrollment figures, attendance information, course completion
19data, graduation information, and post-graduation information,
20as available.
21    (i) Rules must be developed by the State Board of Education
22to set forth the fund distribution process to regional offices
23of education and a school district organized under Article 34
24of this Code, the planning and the conditions upon which an
25IHOPE Plan would be approved by State Board, and other rules to
26develop the IHOPE Program.

 

 

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1(Source: P.A. 96-106, eff. 7-30-09.)
 
2    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
3    Sec. 2-3.84. In calculating the amount of State aid to be
4apportioned to the various school districts in this State, the
5State Board of Education shall incorporate and deduct the total
6aggregate adjustments to assessments made by the State Property
7Tax Appeal Board or Cook County Board of Appeals, as reported
8pursuant to Section 16-15 of the Property Tax Code or Section
9129.1 of the Revenue Act of 1939 by the Department of Revenue,
10from the equalized assessed valuation that is otherwise to be
11utilized in the initial calculation.
12    From the total amount of general State aid or
13evidence-based funding to be provided to districts,
14adjustments under this Section together with adjustments as a
15result of recomputation under Section 2-3.33 must not exceed
16$25 million, in the aggregate for all districts under both
17Sections combined, of the general State aid or evidence-based
18funding appropriation in any fiscal year; if necessary, amounts
19shall be prorated among districts. If it is necessary to
20prorate claims under this paragraph, then that portion of each
21prorated claim that is approved but not paid in the current
22fiscal year may be resubmitted as a valid claim in the
23following fiscal year.
24(Source: P.A. 93-845, eff. 7-30-04.)
 

 

 

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1    (105 ILCS 5/2-3.109a)
2    Sec. 2-3.109a. Laboratory schools grant eligibility. A
3laboratory school as defined in Section 18-8 or 18-8.15 may
4apply for and be eligible to receive, subject to the same
5restrictions applicable to school districts, any grant
6administered by the State Board of Education that is available
7for school districts.
8(Source: P.A. 90-566, eff. 1-2-98.)
 
9    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
10    Sec. 3-14.21. Inspection of schools.
11    (a) The regional superintendent shall inspect and survey
12all public schools under his or her supervision and notify the
13board of education, or the trustees of schools in a district
14with trustees, in writing before July 30, whether or not the
15several schools in their district have been kept as required by
16law, using forms provided by the State Board of Education which
17are based on the Health/Life Safety Code for Public Schools
18adopted under Section 2-3.12. The regional superintendent
19shall report his or her findings to the State Board of
20Education on forms provided by the State Board of Education.
21    (b) If the regional superintendent determines that a school
22board has failed in a timely manner to correct urgent items
23identified in a previous life-safety report completed under
24Section 2-3.12 or as otherwise previously ordered by the
25regional superintendent, the regional superintendent shall

 

 

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1order the school board to adopt and submit to the regional
2superintendent a plan for the immediate correction of the
3building violations. This plan shall be adopted following a
4public hearing that is conducted by the school board on the
5violations and the plan and that is preceded by at least 7
6days' prior notice of the hearing published in a newspaper of
7general circulation within the school district. If the regional
8superintendent determines in the next annual inspection that
9the plan has not been completed and that the violations have
10not been corrected, the regional superintendent shall submit a
11report to the State Board of Education with a recommendation
12that the State Board withhold from payments of general State
13aid or evidence-based funding due to the district an amount
14necessary to correct the outstanding violations. The State
15Board, upon notice to the school board and to the regional
16superintendent, shall consider the report at a meeting of the
17State Board, and may order that a sufficient amount of general
18State aid or evidence-based funding be withheld from payments
19due to the district to correct the violations. This amount
20shall be paid to the regional superintendent who shall contract
21on behalf of the school board for the correction of the
22outstanding violations.
23    (c) The Office of the State Fire Marshal or a qualified
24fire official, as defined in Section 2-3.12 of this Code, to
25whom the State Fire Marshal has delegated his or her authority
26shall conduct an annual fire safety inspection of each school

 

 

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1building in this State. The State Fire Marshal or the fire
2official shall coordinate its inspections with the regional
3superintendent. The inspection shall be based on the fire
4safety code authorized in Section 2-3.12 of this Code. Any
5violations shall be reported in writing to the regional
6superintendent and shall reference the specific code sections
7where a discrepancy has been identified within 15 days after
8the inspection has been conducted. The regional superintendent
9shall address those violations that are not corrected in a
10timely manner pursuant to subsection (b) of this Section. The
11inspection must be at no cost to the school district.
12    (d) If a municipality or, in the case of an unincorporated
13area, a county or, if applicable, a fire protection district
14wishes to perform new construction inspections under the
15jurisdiction of a regional superintendent, then the entity must
16register this wish with the regional superintendent. These
17inspections must be based on the building code authorized in
18Section 2-3.12 of this Code. The inspections must be at no cost
19to the school district.
20(Source: P.A. 96-734, eff. 8-25-09.)
 
21    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
22    Sec. 7-14A. Annexation compensation. There shall be no
23accounting made after a mere change in boundaries when no new
24district is created, except that those districts whose
25enrollment increases by 90% or more as a result of annexing

 

 

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1territory detached from another district pursuant to this
2Article are eligible for supplementary State aid payments in
3accordance with Section 11E-135 of this Code. Eligible annexing
4districts shall apply to the State Board of Education for
5supplementary State aid payments by submitting enrollment
6figures for the year immediately preceding and the year
7immediately following the effective date of the boundary change
8for both the district gaining territory and the district losing
9territory. Copies of any intergovernmental agreements between
10the district gaining territory and the district losing
11territory detailing any transfer of fund balances and staff
12must also be submitted. In all instances of changes in
13boundaries, the district losing territory shall not count the
14average daily attendance of pupils living in the territory
15during the year preceding the effective date of the boundary
16change in its claim for reimbursement under Section 18-8.05 or
1718-8.15 of this Code for the school year following the
18effective date of the change in boundaries and the district
19receiving the territory shall count the average daily
20attendance of pupils living in the territory during the year
21preceding the effective date of the boundary change in its
22claim for reimbursement under Section 18-8.05 or 18-8.15 of
23this Code for the school year following the effective date of
24the change in boundaries. The changes to this Section made by
25this amendatory Act of the 95th General Assembly are intended
26to be retroactive and applicable to any annexation taking

 

 

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1effect on or after July 1, 2004.
2(Source: P.A. 99-657, eff. 7-28-16.)
 
3    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
4    Sec. 10-19. Length of school term - experimental programs.
5Each school board shall annually prepare a calendar for the
6school term, specifying the opening and closing dates and
7providing a minimum term of at least 185 days to insure 176
8days of actual pupil attendance, computable under Section
918-8.05 or 18-8.15, except that for the 1980-1981 school year
10only 175 days of actual pupil attendance shall be required
11because of the closing of schools pursuant to Section 24-2 on
12January 29, 1981 upon the appointment by the President of that
13day as a day of thanksgiving for the freedom of the Americans
14who had been held hostage in Iran. Any days allowed by law for
15teachers' institutes but not used as such or used as parental
16institutes as provided in Section 10-22.18d shall increase the
17minimum term by the school days not so used. Except as provided
18in Section 10-19.1, the board may not extend the school term
19beyond such closing date unless that extension of term is
20necessary to provide the minimum number of computable days. In
21case of such necessary extension school employees shall be paid
22for such additional time on the basis of their regular
23contracts. A school board may specify a closing date earlier
24than that set on the annual calendar when the schools of the
25district have provided the minimum number of computable days

 

 

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1under this Section. Nothing in this Section prevents the board
2from employing superintendents of schools, principals and
3other nonteaching personnel for a period of 12 months, or in
4the case of superintendents for a period in accordance with
5Section 10-23.8, or prevents the board from employing other
6personnel before or after the regular school term with payment
7of salary proportionate to that received for comparable work
8during the school term.
9    A school board may make such changes in its calendar for
10the school term as may be required by any changes in the legal
11school holidays prescribed in Section 24-2. A school board may
12make changes in its calendar for the school term as may be
13necessary to reflect the utilization of teachers' institute
14days as parental institute days as provided in Section
1510-22.18d.
16    The calendar for the school term and any changes must be
17submitted to and approved by the regional superintendent of
18schools before the calendar or changes may take effect.
19    With the prior approval of the State Board of Education and
20subject to review by the State Board of Education every 3
21years, any school board may, by resolution of its board and in
22agreement with affected exclusive collective bargaining
23agents, establish experimental educational programs, including
24but not limited to programs for e-learning days as authorized
25under Section 10-20.56 of this Code, self-directed learning, or
26outside of formal class periods, which programs when so

 

 

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1approved shall be considered to comply with the requirements of
2this Section as respects numbers of days of actual pupil
3attendance and with the other requirements of this Act as
4respects courses of instruction.
5(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
6    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
7    Sec. 10-22.5a. Attendance by dependents of United States
8military personnel, foreign exchange students, and certain
9nonresident pupils.
10    (a) To enter into written agreements with cultural exchange
11organizations, or with nationally recognized eleemosynary
12institutions that promote excellence in the arts, mathematics,
13or science. The written agreements may provide for tuition free
14attendance at the local district school by foreign exchange
15students, or by nonresident pupils of eleemosynary
16institutions. The local board of education, as part of the
17agreement, may require that the cultural exchange program or
18the eleemosynary institutions provide services to the district
19in exchange for the waiver of nonresident tuition.
20    To enter into written agreements with adjacent school
21districts to provide for tuition free attendance by a student
22of the adjacent district when requested for the student's
23health and safety by the student or parent and both districts
24determine that the student's health or safety will be served by
25such attendance. Districts shall not be required to enter into

 

 

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1such agreements nor be required to alter existing
2transportation services due to the attendance of such
3non-resident pupils.
4    (a-5) If, at the time of enrollment, a dependent of United
5States military personnel is housed in temporary housing
6located outside of a school district, but will be living within
7the district within 60 days after the time of initial
8enrollment, the dependent must be allowed to enroll, subject to
9the requirements of this subsection (a-5), and must not be
10charged tuition. Any United States military personnel
11attempting to enroll a dependent under this subsection (a-5)
12shall provide proof that the dependent will be living within
13the district within 60 days after the time of initial
14enrollment. Proof of residency may include, but is not limited
15to, postmarked mail addressed to the military personnel and
16sent to an address located within the district, a lease
17agreement for occupancy of a residence located within the
18district, or proof of ownership of a residence located within
19the district.
20    (b) Nonresident pupils and foreign exchange students
21attending school on a tuition free basis under such agreements
22and nonresident dependents of United States military personnel
23attending school on a tuition free basis may be counted for the
24purposes of determining the apportionment of State aid provided
25under Section 18-8.05 or 18-8.15 of this Code. No organization
26or institution participating in agreements authorized under

 

 

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1this Section may exclude any individual for participation in
2its program on account of the person's race, color, sex,
3religion or nationality.
4(Source: P.A. 98-739, eff. 7-16-14.)
 
5    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
6    Sec. 10-22.20. Classes for adults and youths whose
7schooling has been interrupted; conditions for State
8reimbursement; use of child care facilities.
9    (a) To establish special classes for the instruction (1) of
10persons of age 21 years or over and (2) of persons less than
11age 21 and not otherwise in attendance in public school, for
12the purpose of providing adults in the community and youths
13whose schooling has been interrupted with such additional basic
14education, vocational skill training, and other instruction as
15may be necessary to increase their qualifications for
16employment or other means of self-support and their ability to
17meet their responsibilities as citizens, including courses of
18instruction regularly accepted for graduation from elementary
19or high schools and for Americanization and high school
20equivalency testing review classes.
21    The board shall pay the necessary expenses of such classes
22out of school funds of the district, including costs of student
23transportation and such facilities or provision for child-care
24as may be necessary in the judgment of the board to permit
25maximum utilization of the courses by students with children,

 

 

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1and other special needs of the students directly related to
2such instruction. The expenses thus incurred shall be subject
3to State reimbursement, as provided in this Section. The board
4may make a tuition charge for persons taking instruction who
5are not subject to State reimbursement, such tuition charge not
6to exceed the per capita cost of such classes.
7    The cost of such instruction, including the additional
8expenses herein authorized, incurred for recipients of
9financial aid under the Illinois Public Aid Code, or for
10persons for whom education and training aid has been authorized
11under Section 9-8 of that Code, shall be assumed in its
12entirety from funds appropriated by the State to the Illinois
13Community College Board.
14    (b) The Illinois Community College Board shall establish
15the standards for the courses of instruction reimbursed under
16this Section. The Illinois Community College Board shall
17supervise the administration of the programs. The Illinois
18Community College Board shall determine the cost of instruction
19in accordance with standards established by the Illinois
20Community College Board, including therein other incidental
21costs as herein authorized, which shall serve as the basis of
22State reimbursement in accordance with the provisions of this
23Section. In the approval of programs and the determination of
24the cost of instruction, the Illinois Community College Board
25shall provide for the maximum utilization of federal funds for
26such programs. The Illinois Community College Board shall also

 

 

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1provide for:
2        (1) the development of an index of need for program
3    planning and for area funding allocations, as defined by
4    the Illinois Community College Board;
5        (2) the method for calculating hours of instruction, as
6    defined by the Illinois Community College Board, claimable
7    for reimbursement and a method to phase in the calculation
8    and for adjusting the calculations in cases where the
9    services of a program are interrupted due to circumstances
10    beyond the control of the program provider;
11        (3) a plan for the reallocation of funds to increase
12    the amount allocated for grants based upon program
13    performance as set forth in subsection (d) below; and
14        (4) the development of standards for determining
15    grants based upon performance as set forth in subsection
16    (d) below and a plan for the phased-in implementation of
17    those standards.
18    For instruction provided by school districts and community
19college districts beginning July 1, 1996 and thereafter,
20reimbursement provided by the Illinois Community College Board
21for classes authorized by this Section shall be provided from
22funds appropriated for the reimbursement criteria set forth in
23subsection (c) below.
24    (c) Upon the annual approval of the Illinois Community
25College Board, reimbursement shall be first provided for
26transportation, child care services, and other special needs of

 

 

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1the students directly related to instruction and then from the
2funds remaining an amount equal to the product of the total
3credit hours or units of instruction approved by the Illinois
4Community College Board, multiplied by the following:
5        (1) For adult basic education, the maximum
6    reimbursement per credit hour or per unit of instruction
7    shall be equal to (i) through fiscal year 2017, the general
8    state aid per pupil foundation level established in
9    subsection (B) of Section 18-8.05, divided by 60, or (ii)
10    in fiscal year 2018 and thereafter, the prior fiscal year
11    reimbursement level multiplied by the Consumer Price Index
12    for All Urban Consumers for all items published by the
13    United States Department of Labor;
14        (2) The maximum reimbursement per credit hour or per
15    unit of instruction in subparagraph (1) above shall be
16    weighted for students enrolled in classes defined as
17    vocational skills and approved by the Illinois Community
18    College Board by 1.25;
19        (3) The maximum reimbursement per credit hour or per
20    unit of instruction in subparagraph (1) above shall be
21    multiplied by .90 for students enrolled in classes defined
22    as adult secondary education programs and approved by the
23    Illinois Community College Board;
24        (4) (Blank); and
25        (5) Funding for program years after 1999-2000 shall be
26    determined by the Illinois Community College Board.

 

 

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1    (d) Upon its annual approval, the Illinois Community
2College Board shall provide grants to eligible programs for
3supplemental activities to improve or expand services under the
4Adult Education Act. Eligible programs shall be determined
5based upon performance outcomes of students in the programs as
6set by the Illinois Community College Board.
7    (e) Reimbursement under this Section shall not exceed the
8actual costs of the approved program.
9    If the amount appropriated to the Illinois Community
10College Board for reimbursement under this Section is less than
11the amount required under this Act, the apportionment shall be
12proportionately reduced.
13    School districts and community college districts may
14assess students up to $3.00 per credit hour, for classes other
15than Adult Basic Education level programs, if needed to meet
16program costs.
17    (f) An education plan shall be established for each adult
18or youth whose schooling has been interrupted and who is
19participating in the instructional programs provided under
20this Section.
21    Each school board and community college shall keep an
22accurate and detailed account of the students assigned to and
23receiving instruction under this Section who are subject to
24State reimbursement and shall submit reports of services
25provided commencing with fiscal year 1997 as required by the
26Illinois Community College Board.

 

 

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1    For classes authorized under this Section, a credit hour or
2unit of instruction is equal to 15 hours of direct instruction
3for students enrolled in approved adult education programs at
4midterm and making satisfactory progress, in accordance with
5standards established by the Illinois Community College Board.
6    (g) Upon proof submitted to the Illinois Department of
7Human Services of the payment of all claims submitted under
8this Section, that Department shall apply for federal funds
9made available therefor and any federal funds so received shall
10be paid into the General Revenue Fund in the State Treasury.
11    School districts or community colleges providing classes
12under this Section shall submit applications to the Illinois
13Community College Board for preapproval in accordance with the
14standards established by the Illinois Community College Board.
15Payments shall be made by the Illinois Community College Board
16based upon approved programs. Interim expenditure reports may
17be required by the Illinois Community College Board. Final
18claims for the school year shall be submitted to the regional
19superintendents for transmittal to the Illinois Community
20College Board. Final adjusted payments shall be made by
21September 30.
22    If a school district or community college district fails to
23provide, or is providing unsatisfactory or insufficient
24classes under this Section, the Illinois Community College
25Board may enter into agreements with public or private
26educational or other agencies other than the public schools for

 

 

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1the establishment of such classes.
2    (h) If a school district or community college district
3establishes child-care facilities for the children of
4participants in classes established under this Section, it may
5extend the use of these facilities to students who have
6obtained employment and to other persons in the community whose
7children require care and supervision while the parent or other
8person in charge of the children is employed or otherwise
9absent from the home during all or part of the day. It may make
10the facilities available before and after as well as during
11regular school hours to school age and preschool age children
12who may benefit thereby, including children who require care
13and supervision pending the return of their parent or other
14person in charge of their care from employment or other
15activity requiring absence from the home.
16    The Illinois Community College Board shall pay to the board
17the cost of care in the facilities for any child who is a
18recipient of financial aid under the Illinois Public Aid Code.
19    The board may charge for care of children for whom it
20cannot make claim under the provisions of this Section. The
21charge shall not exceed per capita cost, and to the extent
22feasible, shall be fixed at a level which will permit
23utilization by employed parents of low or moderate income. It
24may also permit any other State or local governmental agency or
25private agency providing care for children to purchase care.
26    After July 1, 1970 when the provisions of Section 10-20.20

 

 

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1become operative in the district, children in a child-care
2facility shall be transferred to the kindergarten established
3under that Section for such portion of the day as may be
4required for the kindergarten program, and only the prorated
5costs of care and training provided in the Center for the
6remaining period shall be charged to the Illinois Department of
7Human Services or other persons or agencies paying for such
8care.
9    (i) The provisions of this Section shall also apply to
10school districts having a population exceeding 500,000.
11    (j) In addition to claiming reimbursement under this
12Section, a school district may claim general State aid under
13Section 18-8.05 or evidence-based funding under Section
1418-8.15 for any student under age 21 who is enrolled in courses
15accepted for graduation from elementary or high school and who
16otherwise meets the requirements of Section 18-8.05 or 18-8.15,
17as applicable.
18(Source: P.A. 98-718, eff. 1-1-15.)
 
19    (105 ILCS 5/10-29)
20    Sec. 10-29. Remote educational programs.
21    (a) For purposes of this Section, "remote educational
22program" means an educational program delivered to students in
23the home or other location outside of a school building that
24meets all of the following criteria:
25        (1) A student may participate in the program only after

 

 

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1    the school district, pursuant to adopted school board
2    policy, and a person authorized to enroll the student under
3    Section 10-20.12b of this Code determine that a remote
4    educational program will best serve the student's
5    individual learning needs. The adopted school board policy
6    shall include, but not be limited to, all of the following:
7            (A) Criteria for determining that a remote
8        educational program will best serve a student's
9        individual learning needs. The criteria must include
10        consideration of, at a minimum, a student's prior
11        attendance, disciplinary record, and academic history.
12            (B) Any limitations on the number of students or
13        grade levels that may participate in a remote
14        educational program.
15            (C) A description of the process that the school
16        district will use to approve participation in the
17        remote educational program. The process must include
18        without limitation a requirement that, for any student
19        who qualifies to receive services pursuant to the
20        federal Individuals with Disabilities Education
21        Improvement Act of 2004, the student's participation
22        in a remote educational program receive prior approval
23        from the student's individualized education program
24        team.
25            (D) A description of the process the school
26        district will use to develop and approve a written

 

 

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1        remote educational plan that meets the requirements of
2        subdivision (5) of this subsection (a).
3            (E) A description of the system the school district
4        will establish to calculate the number of clock hours a
5        student is participating in instruction in accordance
6        with the remote educational program.
7            (F) A description of the process for renewing a
8        remote educational program at the expiration of its
9        term.
10            (G) Such other terms and provisions as the school
11        district deems necessary to provide for the
12        establishment and delivery of a remote educational
13        program.
14        (2) The school district has determined that the remote
15    educational program's curriculum is aligned to State
16    learning standards and that the program offers instruction
17    and educational experiences consistent with those given to
18    students at the same grade level in the district.
19        (3) The remote educational program is delivered by
20    instructors that meet the following qualifications:
21            (A) they are certificated under Article 21 of this
22        Code;
23            (B) they meet applicable highly qualified criteria
24        under the federal No Child Left Behind Act of 2001; and
25            (C) they have responsibility for all of the
26        following elements of the program: planning

 

 

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1        instruction, diagnosing learning needs, prescribing
2        content delivery through class activities, assessing
3        learning, reporting outcomes to administrators and
4        parents and guardians, and evaluating the effects of
5        instruction.
6        (4) During the period of time from and including the
7    opening date to the closing date of the regular school term
8    of the school district established pursuant to Section
9    10-19 of this Code, participation in a remote educational
10    program may be claimed for general State aid purposes under
11    Section 18-8.05 of this Code or evidence-based funding
12    purposes under Section 18-8.15 of this Code on any calendar
13    day, notwithstanding whether the day is a day of pupil
14    attendance or institute day on the school district's
15    calendar or any other provision of law restricting
16    instruction on that day. If the district holds year-round
17    classes in some buildings, the district shall classify each
18    student's participation in a remote educational program as
19    either on a year-round or a non-year-round schedule for
20    purposes of claiming general State aid or evidence-based
21    funding. Outside of the regular school term of the
22    district, the remote educational program may be offered as
23    part of any summer school program authorized by this Code.
24        (5) Each student participating in a remote educational
25    program must have a written remote educational plan that
26    has been approved by the school district and a person

 

 

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1    authorized to enroll the student under Section 10-20.12b of
2    this Code. The school district and a person authorized to
3    enroll the student under Section 10-20.12b of this Code
4    must approve any amendment to a remote educational plan.
5    The remote educational plan must include, but is not
6    limited to, all of the following:
7            (A) Specific achievement goals for the student
8        aligned to State learning standards.
9            (B) A description of all assessments that will be
10        used to measure student progress, which description
11        shall indicate the assessments that will be
12        administered at an attendance center within the school
13        district.
14            (C) A description of the progress reports that will
15        be provided to the school district and the person or
16        persons authorized to enroll the student under Section
17        10-20.12b of this Code.
18            (D) Expectations, processes, and schedules for
19        interaction between a teacher and student.
20            (E) A description of the specific responsibilities
21        of the student's family and the school district with
22        respect to equipment, materials, phone and Internet
23        service, and any other requirements applicable to the
24        home or other location outside of a school building
25        necessary for the delivery of the remote educational
26        program.

 

 

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1            (F) If applicable, a description of how the remote
2        educational program will be delivered in a manner
3        consistent with the student's individualized education
4        program required by Section 614(d) of the federal
5        Individuals with Disabilities Education Improvement
6        Act of 2004 or plan to ensure compliance with Section
7        504 of the federal Rehabilitation Act of 1973.
8            (G) A description of the procedures and
9        opportunities for participation in academic and
10        extra-curricular activities and programs within the
11        school district.
12            (H) The identification of a parent, guardian, or
13        other responsible adult who will provide direct
14        supervision of the program. The plan must include an
15        acknowledgment by the parent, guardian, or other
16        responsible adult that he or she may engage only in
17        non-teaching duties not requiring instructional
18        judgment or the evaluation of a student. The plan shall
19        designate the parent, guardian, or other responsible
20        adult as non-teaching personnel or volunteer personnel
21        under subsection (a) of Section 10-22.34 of this Code.
22            (I) The identification of a school district
23        administrator who will oversee the remote educational
24        program on behalf of the school district and who may be
25        contacted by the student's parents with respect to any
26        issues or concerns with the program.

 

 

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1            (J) The term of the student's participation in the
2        remote educational program, which may not extend for
3        longer than 12 months, unless the term is renewed by
4        the district in accordance with subdivision (7) of this
5        subsection (a).
6            (K) A description of the specific location or
7        locations in which the program will be delivered. If
8        the remote educational program is to be delivered to a
9        student in any location other than the student's home,
10        the plan must include a written determination by the
11        school district that the location will provide a
12        learning environment appropriate for the delivery of
13        the program. The location or locations in which the
14        program will be delivered shall be deemed a long
15        distance teaching reception area under subsection (a)
16        of Section 10-22.34 of this Code.
17            (L) Certification by the school district that the
18        plan meets all other requirements of this Section.
19        (6) Students participating in a remote educational
20    program must be enrolled in a school district attendance
21    center pursuant to the school district's enrollment policy
22    or policies. A student participating in a remote
23    educational program must be tested as part of all
24    assessments administered by the school district pursuant
25    to Section 2-3.64a-5 of this Code at the attendance center
26    in which the student is enrolled and in accordance with the

 

 

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1    attendance center's assessment policies and schedule. The
2    student must be included within all accountability
3    determinations for the school district and attendance
4    center under State and federal law.
5        (7) The term of a student's participation in a remote
6    educational program may not extend for longer than 12
7    months, unless the term is renewed by the school district.
8    The district may only renew a student's participation in a
9    remote educational program following an evaluation of the
10    student's progress in the program, a determination that the
11    student's continuation in the program will best serve the
12    student's individual learning needs, and an amendment to
13    the student's written remote educational plan addressing
14    any changes for the upcoming term of the program.
15    For purposes of this Section, a remote educational program
16does not include instruction delivered to students through an
17e-learning program approved under Section 10-20.56 of this
18Code.
19    (b) A school district may, by resolution of its school
20board, establish a remote educational program.
21    (c) Clock hours of instruction by students in a remote
22educational program meeting the requirements of this Section
23may be claimed by the school district and shall be counted as
24school work for general State aid purposes in accordance with
25and subject to the limitations of Section 18-8.05 of this Code
26or evidence-based funding purposes in accordance with and

 

 

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1subject to the limitations of Section 18-8.15 of this Code.
2    (d) The impact of remote educational programs on wages,
3hours, and terms and conditions of employment of educational
4employees within the school district shall be subject to local
5collective bargaining agreements.
6    (e) The use of a home or other location outside of a school
7building for a remote educational program shall not cause the
8home or other location to be deemed a public school facility.
9    (f) A remote educational program may be used, but is not
10required, for instruction delivered to a student in the home or
11other location outside of a school building that is not claimed
12for general State aid purposes under Section 18-8.05 of this
13Code or evidence-based funding purposes under Section 18-8.15
14of this Code.
15    (g) School districts that, pursuant to this Section, adopt
16a policy for a remote educational program must submit to the
17State Board of Education a copy of the policy and any
18amendments thereto, as well as data on student participation in
19a format specified by the State Board of Education. The State
20Board of Education may perform or contract with an outside
21entity to perform an evaluation of remote educational programs
22in this State.
23    (h) The State Board of Education may adopt any rules
24necessary to ensure compliance by remote educational programs
25with the requirements of this Section and other applicable
26legal requirements.

 

 

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1(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
299-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
3    (105 ILCS 5/11E-135)
4    Sec. 11E-135. Incentives. For districts reorganizing under
5this Article and for a district or districts that annex all of
6the territory of one or more entire other school districts in
7accordance with Article 7 of this Code, the following payments
8shall be made from appropriations made for these purposes:
9    (a)(1) For a combined school district, as defined in
10Section 11E-20 of this Code, or for a unit district, as defined
11in Section 11E-25 of this Code, for its first year of
12existence, the general State aid and supplemental general State
13aid calculated under Section 18-8.05 of this Code or the
14evidence-based funding calculated under Section 18-8.15 of
15this Code, as applicable, shall be computed for the new
16district and for the previously existing districts for which
17property is totally included within the new district. If the
18computation on the basis of the previously existing districts
19is greater, a supplementary payment equal to the difference
20shall be made for the first 4 years of existence of the new
21district.
22    (2) For a school district that annexes all of the territory
23of one or more entire other school districts as defined in
24Article 7 of this Code, for the first year during which the
25change of boundaries attributable to the annexation becomes

 

 

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1effective for all purposes, as determined under Section 7-9 of
2this Code, the general State aid and supplemental general State
3aid calculated under Section 18-8.05 of this Code or the
4evidence-based funding calculated under Section 18-8.15 of
5this Code, as applicable, shall be computed for the annexing
6district as constituted after the annexation and for the
7annexing and each annexed district as constituted prior to the
8annexation; and if the computation on the basis of the annexing
9and annexed districts as constituted prior to the annexation is
10greater, then a supplementary payment equal to the difference
11shall be made for the first 4 years of existence of the
12annexing school district as constituted upon the annexation.
13    (3) For 2 or more school districts that annex all of the
14territory of one or more entire other school districts, as
15defined in Article 7 of this Code, for the first year during
16which the change of boundaries attributable to the annexation
17becomes effective for all purposes, as determined under Section
187-9 of this Code, the general State aid and supplemental
19general State aid calculated under Section 18-8.05 of this Code
20or the evidence-based funding calculated under Section 18-8.15
21of this Code, as applicable, shall be computed for each
22annexing district as constituted after the annexation and for
23each annexing and annexed district as constituted prior to the
24annexation; and if the aggregate of the general State aid and
25supplemental general State aid or evidence-based funding, as
26applicable, as so computed for the annexing districts as

 

 

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1constituted after the annexation is less than the aggregate of
2the general State aid and supplemental general State aid or
3evidence-based funding, as applicable, as so computed for the
4annexing and annexed districts, as constituted prior to the
5annexation, then a supplementary payment equal to the
6difference shall be made and allocated between or among the
7annexing districts, as constituted upon the annexation, for the
8first 4 years of their existence. The total difference payment
9shall be allocated between or among the annexing districts in
10the same ratio as the pupil enrollment from that portion of the
11annexed district or districts that is annexed to each annexing
12district bears to the total pupil enrollment from the entire
13annexed district or districts, as such pupil enrollment is
14determined for the school year last ending prior to the date
15when the change of boundaries attributable to the annexation
16becomes effective for all purposes. The amount of the total
17difference payment and the amount thereof to be allocated to
18the annexing districts shall be computed by the State Board of
19Education on the basis of pupil enrollment and other data that
20shall be certified to the State Board of Education, on forms
21that it shall provide for that purpose, by the regional
22superintendent of schools for each educational service region
23in which the annexing and annexed districts are located.
24    (4) For a school district conversion, as defined in Section
2511E-15 of this Code, or a multi-unit conversion, as defined in
26subsection (b) of Section 11E-30 of this Code, if in their

 

 

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1first year of existence the newly created elementary districts
2and the newly created high school district, from a school
3district conversion, or the newly created elementary district
4or districts and newly created combined high school - unit
5district, from a multi-unit conversion, qualify for less
6general State aid under Section 18-8.05 of this Code or
7evidence-based funding under Section 18-8.15 of this Code than
8would have been payable under Section 18-8.05 or 18-8.15, as
9applicable, for that same year to the previously existing
10districts, then a supplementary payment equal to that
11difference shall be made for the first 4 years of existence of
12the newly created districts. The aggregate amount of each
13supplementary payment shall be allocated among the newly
14created districts in the proportion that the deemed pupil
15enrollment in each district during its first year of existence
16bears to the actual aggregate pupil enrollment in all of the
17districts during their first year of existence. For purposes of
18each allocation:
19        (A) the deemed pupil enrollment of the newly created
20    high school district from a school district conversion
21    shall be an amount equal to its actual pupil enrollment for
22    its first year of existence multiplied by 1.25;
23        (B) the deemed pupil enrollment of each newly created
24    elementary district from a school district conversion
25    shall be an amount equal to its actual pupil enrollment for
26    its first year of existence reduced by an amount equal to

 

 

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1    the product obtained when the amount by which the newly
2    created high school district's deemed pupil enrollment
3    exceeds its actual pupil enrollment for its first year of
4    existence is multiplied by a fraction, the numerator of
5    which is the actual pupil enrollment of the newly created
6    elementary district for its first year of existence and the
7    denominator of which is the actual aggregate pupil
8    enrollment of all of the newly created elementary districts
9    for their first year of existence;
10        (C) the deemed high school pupil enrollment of the
11    newly created combined high school - unit district from a
12    multi-unit conversion shall be an amount equal to its
13    actual grades 9 through 12 pupil enrollment for its first
14    year of existence multiplied by 1.25; and
15        (D) the deemed elementary pupil enrollment of each
16    newly created district from a multi-unit conversion shall
17    be an amount equal to each district's actual grade K
18    through 8 pupil enrollment for its first year of existence,
19    reduced by an amount equal to the product obtained when the
20    amount by which the newly created combined high school -
21    unit district's deemed high school pupil enrollment
22    exceeds its actual grade 9 through 12 pupil enrollment for
23    its first year of existence is multiplied by a fraction,
24    the numerator of which is the actual grade K through 8
25    pupil enrollment of each newly created district for its
26    first year of existence and the denominator of which is the

 

 

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1    actual aggregate grade K through 8 pupil enrollment of all
2    such newly created districts for their first year of
3    existence.
4     The aggregate amount of each supplementary payment under
5this subdivision (4) and the amount thereof to be allocated to
6the newly created districts shall be computed by the State
7Board of Education on the basis of pupil enrollment and other
8data, which shall be certified to the State Board of Education,
9on forms that it shall provide for that purpose, by the
10regional superintendent of schools for each educational
11service region in which the newly created districts are
12located.
13    (5) For a partial elementary unit district, as defined in
14subsection (a) or (c) of Section 11E-30 of this Code, if, in
15the first year of existence, the newly created partial
16elementary unit district qualifies for less general State aid
17and supplemental general State aid under Section 18-8.05 of
18this Code or less evidence-based funding under Section 18-8.15
19of this Code, as applicable, than would have been payable under
20those Sections that Section for that same year to the
21previously existing districts that formed the partial
22elementary unit district, then a supplementary payment equal to
23that difference shall be made to the partial elementary unit
24district for the first 4 years of existence of that newly
25created district.
26    (6) For an elementary opt-in, as described in subsection

 

 

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1(d) of Section 11E-30 of this Code, the general State aid or
2evidence-based funding difference shall be computed in
3accordance with paragraph (5) of this subsection (a) as if the
4elementary opt-in was included in an optional elementary unit
5district at the optional elementary unit district's original
6effective date. If the calculation in this paragraph (6) is
7less than that calculated in paragraph (5) of this subsection
8(a) at the optional elementary unit district's original
9effective date, then no adjustments may be made. If the
10calculation in this paragraph (6) is more than that calculated
11in paragraph (5) of this subsection (a) at the optional
12elementary unit district's original effective date, then the
13excess must be paid as follows:
14        (A) If the effective date for the elementary opt-in is
15    one year after the effective date for the optional
16    elementary unit district, 100% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    each of the first 4 years after the effective date of the
19    elementary opt-in.
20        (B) If the effective date for the elementary opt-in is
21    2 years after the effective date for the optional
22    elementary unit district, 75% of the calculated excess
23    shall be paid to the optional elementary unit district in
24    each of the first 4 years after the effective date of the
25    elementary opt-in.
26        (C) If the effective date for the elementary opt-in is

 

 

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1    3 years after the effective date for the optional
2    elementary unit district, 50% of the calculated excess
3    shall be paid to the optional elementary unit district in
4    each of the first 4 years after the effective date of the
5    elementary opt-in.
6        (D) If the effective date for the elementary opt-in is
7    4 years after the effective date for the optional
8    elementary unit district, 25% of the calculated excess
9    shall be paid to the optional elementary unit district in
10    each of the first 4 years after the effective date of the
11    elementary opt-in.
12        (E) If the effective date for the elementary opt-in is
13    5 years after the effective date for the optional
14    elementary unit district, the optional elementary unit
15    district is not eligible for any additional incentives due
16    to the elementary opt-in.
17    (6.5) For a school district that annexes territory detached
18from another school district whereby the enrollment of the
19annexing district increases by 90% or more as a result of the
20annexation, for the first year during which the change of
21boundaries attributable to the annexation becomes effective
22for all purposes as determined under Section 7-9 of this Code,
23the general State aid and supplemental general State aid or
24evidence-based funding, as applicable, calculated under this
25Section shall be computed for the district gaining territory
26and the district losing territory as constituted after the

 

 

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1annexation and for the same districts as constituted prior to
2the annexation; and if the aggregate of the general State aid
3and supplemental general State aid or evidence-based funding,
4as applicable, as so computed for the district gaining
5territory and the district losing territory as constituted
6after the annexation is less than the aggregate of the general
7State aid and supplemental general State aid or evidence-based
8funding, as applicable, as so computed for the district gaining
9territory and the district losing territory as constituted
10prior to the annexation, then a supplementary payment shall be
11made to the annexing district for the first 4 years of
12existence after the annexation, equal to the difference
13multiplied by the ratio of student enrollment in the territory
14detached to the total student enrollment in the district losing
15territory for the year prior to the effective date of the
16annexation. The amount of the total difference and the
17proportion paid to the annexing district shall be computed by
18the State Board of Education on the basis of pupil enrollment
19and other data that must be submitted to the State Board of
20Education in accordance with Section 7-14A of this Code. The
21changes to this Section made by Public Act 95-707 are intended
22to be retroactive and applicable to any annexation taking
23effect on or after July 1, 2004. For annexations that are
24eligible for payments under this paragraph (6.5) and that are
25effective on or after July 1, 2004, but before January 11, 2008
26(the effective date of Public Act 95-707), the first required

 

 

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1yearly payment under this paragraph (6.5) shall be paid in the
2fiscal year of January 11, 2008 (the effective date of Public
3Act 95-707). Subsequent required yearly payments shall be paid
4in subsequent fiscal years until the payment obligation under
5this paragraph (6.5) is complete.
6    (7) Claims for financial assistance under this subsection
7(a) may not be recomputed except as expressly provided under
8Section 18-8.05 or 18-8.15 of this Code.
9    (8) Any supplementary payment made under this subsection
10(a) must be treated as separate from all other payments made
11pursuant to Section 18-8.05 or 18-8.15 of this Code.
12    (b)(1) After the formation of a combined school district,
13as defined in Section 11E-20 of this Code, or a unit district,
14as defined in Section 11E-25 of this Code, a computation shall
15be made to determine the difference between the salaries
16effective in each of the previously existing districts on June
1730, prior to the creation of the new district. For the first 4
18years after the formation of the new district, a supplementary
19State aid reimbursement shall be paid to the new district equal
20to the difference between the sum of the salaries earned by
21each of the certificated members of the new district, while
22employed in one of the previously existing districts during the
23year immediately preceding the formation of the new district,
24and the sum of the salaries those certificated members would
25have been paid during the year immediately prior to the
26formation of the new district if placed on the salary schedule

 

 

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1of the previously existing district with the highest salary
2schedule.
3    (2) After the territory of one or more school districts is
4annexed by one or more other school districts as defined in
5Article 7 of this Code, a computation shall be made to
6determine the difference between the salaries effective in each
7annexed district and in the annexing district or districts as
8they were each constituted on June 30 preceding the date when
9the change of boundaries attributable to the annexation became
10effective for all purposes, as determined under Section 7-9 of
11this Code. For the first 4 years after the annexation, a
12supplementary State aid reimbursement shall be paid to each
13annexing district as constituted after the annexation equal to
14the difference between the sum of the salaries earned by each
15of the certificated members of the annexing district as
16constituted after the annexation, while employed in an annexed
17or annexing district during the year immediately preceding the
18annexation, and the sum of the salaries those certificated
19members would have been paid during the immediately preceding
20year if placed on the salary schedule of whichever of the
21annexing or annexed districts had the highest salary schedule
22during the immediately preceding year.
23    (3) For each new high school district formed under a school
24district conversion, as defined in Section 11E-15 of this Code,
25the State shall make a supplementary payment for 4 years equal
26to the difference between the sum of the salaries earned by

 

 

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1each certified member of the new high school district, while
2employed in one of the previously existing districts, and the
3sum of the salaries those certified members would have been
4paid if placed on the salary schedule of the previously
5existing district with the highest salary schedule.
6    (4) For each newly created partial elementary unit
7district, the State shall make a supplementary payment for 4
8years equal to the difference between the sum of the salaries
9earned by each certified member of the newly created partial
10elementary unit district, while employed in one of the
11previously existing districts that formed the partial
12elementary unit district, and the sum of the salaries those
13certified members would have been paid if placed on the salary
14schedule of the previously existing district with the highest
15salary schedule. The salary schedules used in the calculation
16shall be those in effect in the previously existing districts
17for the school year prior to the creation of the new partial
18elementary unit district.
19    (5) For an elementary district opt-in, as described in
20subsection (d) of Section 11E-30 of this Code, the salary
21difference incentive shall be computed in accordance with
22paragraph (4) of this subsection (b) as if the opted-in
23elementary district was included in the optional elementary
24unit district at the optional elementary unit district's
25original effective date. If the calculation in this paragraph
26(5) is less than that calculated in paragraph (4) of this

 

 

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1subsection (b) at the optional elementary unit district's
2original effective date, then no adjustments may be made. If
3the calculation in this paragraph (5) is more than that
4calculated in paragraph (4) of this subsection (b) at the
5optional elementary unit district's original effective date,
6then the excess must be paid as follows:
7        (A) If the effective date for the elementary opt-in is
8    one year after the effective date for the optional
9    elementary unit district, 100% of the calculated excess
10    shall be paid to the optional elementary unit district in
11    each of the first 4 years after the effective date of the
12    elementary opt-in.
13        (B) If the effective date for the elementary opt-in is
14    2 years after the effective date for the optional
15    elementary unit district, 75% of the calculated excess
16    shall be paid to the optional elementary unit district in
17    each of the first 4 years after the effective date of the
18    elementary opt-in.
19        (C) If the effective date for the elementary opt-in is
20    3 years after the effective date for the optional
21    elementary unit district, 50% of the calculated excess
22    shall be paid to the optional elementary unit district in
23    each of the first 4 years after the effective date of the
24    elementary opt-in.
25        (D) If the effective date for the elementary opt-in is
26    4 years after the effective date for the partial elementary

 

 

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1    unit district, 25% of the calculated excess shall be paid
2    to the optional elementary unit district in each of the
3    first 4 years after the effective date of the elementary
4    opt-in.
5        (E) If the effective date for the elementary opt-in is
6    5 years after the effective date for the optional
7    elementary unit district, the optional elementary unit
8    district is not eligible for any additional incentives due
9    to the elementary opt-in.
10    (5.5) After the formation of a cooperative high school by 2
11or more school districts under Section 10-22.22c of this Code,
12a computation shall be made to determine the difference between
13the salaries effective in each of the previously existing high
14schools on June 30 prior to the formation of the cooperative
15high school. For the first 4 years after the formation of the
16cooperative high school, a supplementary State aid
17reimbursement shall be paid to the cooperative high school
18equal to the difference between the sum of the salaries earned
19by each of the certificated members of the cooperative high
20school while employed in one of the previously existing high
21schools during the year immediately preceding the formation of
22the cooperative high school and the sum of the salaries those
23certificated members would have been paid during the year
24immediately prior to the formation of the cooperative high
25school if placed on the salary schedule of the previously
26existing high school with the highest salary schedule.

 

 

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1    (5.10) After the annexation of territory detached from
2another school district whereby the enrollment of the annexing
3district increases by 90% or more as a result of the
4annexation, a computation shall be made to determine the
5difference between the salaries effective in the district
6gaining territory and the district losing territory as they
7each were constituted on June 30 preceding the date when the
8change of boundaries attributable to the annexation became
9effective for all purposes as determined under Section 7-9 of
10this Code. For the first 4 years after the annexation, a
11supplementary State aid reimbursement shall be paid to the
12annexing district equal to the difference between the sum of
13the salaries earned by each of the certificated members of the
14annexing district as constituted after the annexation while
15employed in the district gaining territory or the district
16losing territory during the year immediately preceding the
17annexation and the sum of the salaries those certificated
18members would have been paid during such immediately preceding
19year if placed on the salary schedule of whichever of the
20district gaining territory or district losing territory had the
21highest salary schedule during the immediately preceding year.
22To be eligible for supplementary State aid reimbursement under
23this Section, the intergovernmental agreement to be submitted
24pursuant to Section 7-14A of this Code must show that staff
25members were transferred from the control of the district
26losing territory to the control of the district gaining

 

 

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1territory in the annexation. The changes to this Section made
2by Public Act 95-707 are intended to be retroactive and
3applicable to any annexation taking effect on or after July 1,
42004. For annexations that are eligible for payments under this
5paragraph (5.10) and that are effective on or after July 1,
62004, but before January 11, 2008 (the effective date of Public
7Act 95-707), the first required yearly payment under this
8paragraph (5.10) shall be paid in the fiscal year of January
911, 2008 (the effective date of Public Act 95-707). Subsequent
10required yearly payments shall be paid in subsequent fiscal
11years until the payment obligation under this paragraph (5.10)
12is complete.
13    (5.15) After the deactivation of a school facility in
14accordance with Section 10-22.22b of this Code, a computation
15shall be made to determine the difference between the salaries
16effective in the sending school district and each receiving
17school district on June 30 prior to the deactivation of the
18school facility. For the lesser of the first 4 years after the
19deactivation of the school facility or the length of the
20deactivation agreement, including any renewals of the original
21deactivation agreement, a supplementary State aid
22reimbursement shall be paid to each receiving district equal to
23the difference between the sum of the salaries earned by each
24of the certificated members transferred to that receiving
25district as a result of the deactivation while employed in the
26sending district during the year immediately preceding the

 

 

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1deactivation and the sum of the salaries those certificated
2members would have been paid during the year immediately
3preceding the deactivation if placed on the salary schedule of
4the sending or receiving district with the highest salary
5schedule.
6    (6) The supplementary State aid reimbursement under this
7subsection (b) shall be treated as separate from all other
8payments made pursuant to Section 18-8.05 of this Code. In the
9case of the formation of a new district or cooperative high
10school or a deactivation, reimbursement shall begin during the
11first year of operation of the new district or cooperative high
12school or the first year of the deactivation, and in the case
13of an annexation of the territory of one or more school
14districts by one or more other school districts or the
15annexation of territory detached from a school district whereby
16the enrollment of the annexing district increases by 90% or
17more as a result of the annexation, reimbursement shall begin
18during the first year when the change in boundaries
19attributable to the annexation becomes effective for all
20purposes as determined pursuant to Section 7-9 of this Code,
21except that for an annexation of territory detached from a
22school district that is effective on or after July 1, 2004, but
23before January 11, 2008 (the effective date of Public Act
2495-707), whereby the enrollment of the annexing district
25increases by 90% or more as a result of the annexation,
26reimbursement shall begin during the fiscal year of January 11,

 

 

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12008 (the effective date of Public Act 95-707). Each year that
2the new, annexing, or receiving district or cooperative high
3school, as the case may be, is entitled to receive
4reimbursement, the number of eligible certified members who are
5employed on October 1 in the district or cooperative high
6school shall be certified to the State Board of Education on
7prescribed forms by October 15 and payment shall be made on or
8before November 15 of that year.
9    (c)(1) For the first year after the formation of a combined
10school district, as defined in Section 11E-20 of this Code or a
11unit district, as defined in Section 11E-25 of this Code, a
12computation shall be made totaling each previously existing
13district's audited fund balances in the educational fund,
14working cash fund, operations and maintenance fund, and
15transportation fund for the year ending June 30 prior to the
16referendum for the creation of the new district. The new
17district shall be paid supplementary State aid equal to the sum
18of the differences between the deficit of the previously
19existing district with the smallest deficit and the deficits of
20each of the other previously existing districts.
21    (2) For the first year after the annexation of all of the
22territory of one or more entire school districts by another
23school district, as defined in Article 7 of this Code,
24computations shall be made, for the year ending June 30 prior
25to the date that the change of boundaries attributable to the
26annexation is allowed by the affirmative decision issued by the

 

 

HB2808- 200 -LRB100 11017 NHT 21256 b

1regional board of school trustees under Section 7-6 of this
2Code, notwithstanding any effort to seek administrative review
3of the decision, totaling the annexing district's and totaling
4each annexed district's audited fund balances in their
5respective educational, working cash, operations and
6maintenance, and transportation funds. The annexing district
7as constituted after the annexation shall be paid supplementary
8State aid equal to the sum of the differences between the
9deficit of whichever of the annexing or annexed districts as
10constituted prior to the annexation had the smallest deficit
11and the deficits of each of the other districts as constituted
12prior to the annexation.
13    (3) For the first year after the annexation of all of the
14territory of one or more entire school districts by 2 or more
15other school districts, as defined by Article 7 of this Code,
16computations shall be made, for the year ending June 30 prior
17to the date that the change of boundaries attributable to the
18annexation is allowed by the affirmative decision of the
19regional board of school trustees under Section 7-6 of this
20Code, notwithstanding any action for administrative review of
21the decision, totaling each annexing and annexed district's
22audited fund balances in their respective educational, working
23cash, operations and maintenance, and transportation funds.
24The annexing districts as constituted after the annexation
25shall be paid supplementary State aid, allocated as provided in
26this paragraph (3), in an aggregate amount equal to the sum of

 

 

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1the differences between the deficit of whichever of the
2annexing or annexed districts as constituted prior to the
3annexation had the smallest deficit and the deficits of each of
4the other districts as constituted prior to the annexation. The
5aggregate amount of the supplementary State aid payable under
6this paragraph (3) shall be allocated between or among the
7annexing districts as follows:
8        (A) the regional superintendent of schools for each
9    educational service region in which an annexed district is
10    located prior to the annexation shall certify to the State
11    Board of Education, on forms that it shall provide for that
12    purpose, the value of all taxable property in each annexed
13    district, as last equalized or assessed by the Department
14    of Revenue prior to the annexation, and the equalized
15    assessed value of each part of the annexed district that
16    was annexed to or included as a part of an annexing
17    district;
18        (B) using equalized assessed values as certified by the
19    regional superintendent of schools under clause (A) of this
20    paragraph (3), the combined audited fund balance deficit of
21    each annexed district as determined under this Section
22    shall be apportioned between or among the annexing
23    districts in the same ratio as the equalized assessed value
24    of that part of the annexed district that was annexed to or
25    included as a part of an annexing district bears to the
26    total equalized assessed value of the annexed district; and

 

 

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1        (C) the aggregate supplementary State aid payment
2    under this paragraph (3) shall be allocated between or
3    among, and shall be paid to, the annexing districts in the
4    same ratio as the sum of the combined audited fund balance
5    deficit of each annexing district as constituted prior to
6    the annexation, plus all combined audited fund balance
7    deficit amounts apportioned to that annexing district
8    under clause (B) of this subsection, bears to the aggregate
9    of the combined audited fund balance deficits of all of the
10    annexing and annexed districts as constituted prior to the
11    annexation.
12    (4) For the new elementary districts and new high school
13district formed through a school district conversion, as
14defined in Section 11E-15 of this Code or the new elementary
15district or districts and new combined high school - unit
16district formed through a multi-unit conversion, as defined in
17subsection (b) of Section 11E-30 of this Code, a computation
18shall be made totaling each previously existing district's
19audited fund balances in the educational fund, working cash
20fund, operations and maintenance fund, and transportation fund
21for the year ending June 30 prior to the referendum
22establishing the new districts. In the first year of the new
23districts, the State shall make a one-time supplementary
24payment equal to the sum of the differences between the deficit
25of the previously existing district with the smallest deficit
26and the deficits of each of the other previously existing

 

 

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1districts. A district with a combined balance among the 4 funds
2that is positive shall be considered to have a deficit of zero.
3The supplementary payment shall be allocated among the newly
4formed high school and elementary districts in the manner
5provided by the petition for the formation of the districts, in
6the form in which the petition is approved by the regional
7superintendent of schools or State Superintendent of Education
8under Section 11E-50 of this Code.
9    (5) For each newly created partial elementary unit
10district, as defined in subsection (a) or (c) of Section 11E-30
11of this Code, a computation shall be made totaling the audited
12fund balances of each previously existing district that formed
13the new partial elementary unit district in the educational
14fund, working cash fund, operations and maintenance fund, and
15transportation fund for the year ending June 30 prior to the
16referendum for the formation of the partial elementary unit
17district. In the first year of the new partial elementary unit
18district, the State shall make a one-time supplementary payment
19to the new district equal to the sum of the differences between
20the deficit of the previously existing district with the
21smallest deficit and the deficits of each of the other
22previously existing districts. A district with a combined
23balance among the 4 funds that is positive shall be considered
24to have a deficit of zero.
25    (6) For an elementary opt-in as defined in subsection (d)
26of Section 11E-30 of this Code, the deficit fund balance

 

 

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1incentive shall be computed in accordance with paragraph (5) of
2this subsection (c) as if the opted-in elementary was included
3in the optional elementary unit district at the optional
4elementary unit district's original effective date. If the
5calculation in this paragraph (6) is less than that calculated
6in paragraph (5) of this subsection (c) at the optional
7elementary unit district's original effective date, then no
8adjustments may be made. If the calculation in this paragraph
9(6) is more than that calculated in paragraph (5) of this
10subsection (c) at the optional elementary unit district's
11original effective date, then the excess must be paid as
12follows:
13        (A) If the effective date for the elementary opt-in is
14    one year after the effective date for the optional
15    elementary unit district, 100% of the calculated excess
16    shall be paid to the optional elementary unit district in
17    the first year after the effective date of the elementary
18    opt-in.
19        (B) If the effective date for the elementary opt-in is
20    2 years after the effective date for the optional
21    elementary unit district, 75% of the calculated excess
22    shall be paid to the optional elementary unit district in
23    the first year after the effective date of the elementary
24    opt-in.
25        (C) If the effective date for the elementary opt-in is
26    3 years after the effective date for the optional

 

 

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1    elementary unit district, 50% of the calculated excess
2    shall be paid to the optional elementary unit district in
3    the first year after the effective date of the elementary
4    opt-in.
5        (D) If the effective date for the elementary opt-in is
6    4 years after the effective date for the optional
7    elementary unit district, 25% of the calculated excess
8    shall be paid to the optional elementary unit district in
9    the first year after the effective date of the elementary
10    opt-in.
11        (E) If the effective date for the elementary opt-in is
12    5 years after the effective date for the optional
13    elementary unit district, the optional elementary unit
14    district is not eligible for any additional incentives due
15    to the elementary opt-in.
16    (6.5) For the first year after the annexation of territory
17detached from another school district whereby the enrollment of
18the annexing district increases by 90% or more as a result of
19the annexation, a computation shall be made totaling the
20audited fund balances of the district gaining territory and the
21audited fund balances of the district losing territory in the
22educational fund, working cash fund, operations and
23maintenance fund, and transportation fund for the year ending
24June 30 prior to the date that the change of boundaries
25attributable to the annexation is allowed by the affirmative
26decision of the regional board of school trustees under Section

 

 

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17-6 of this Code, notwithstanding any action for administrative
2review of the decision. The annexing district as constituted
3after the annexation shall be paid supplementary State aid
4equal to the difference between the deficit of whichever
5district included in this calculation as constituted prior to
6the annexation had the smallest deficit and the deficit of each
7other district included in this calculation as constituted
8prior to the annexation, multiplied by the ratio of equalized
9assessed value of the territory detached to the total equalized
10assessed value of the district losing territory. The regional
11superintendent of schools for the educational service region in
12which a district losing territory is located prior to the
13annexation shall certify to the State Board of Education the
14value of all taxable property in the district losing territory
15and the value of all taxable property in the territory being
16detached, as last equalized or assessed by the Department of
17Revenue prior to the annexation. To be eligible for
18supplementary State aid reimbursement under this Section, the
19intergovernmental agreement to be submitted pursuant to
20Section 7-14A of this Code must show that fund balances were
21transferred from the district losing territory to the district
22gaining territory in the annexation. The changes to this
23Section made by Public Act 95-707 are intended to be
24retroactive and applicable to any annexation taking effect on
25or after July 1, 2004. For annexations that are eligible for
26payments under this paragraph (6.5) and that are effective on

 

 

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1or after July 1, 2004, but before January 11, 2008 (the
2effective date of Public Act 95-707), the required payment
3under this paragraph (6.5) shall be paid in the fiscal year of
4January 11, 2008 (the effective date of Public Act 95-707).
5    (7) For purposes of any calculation required under
6paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
7subsection (c), a district with a combined fund balance that is
8positive shall be considered to have a deficit of zero. For
9purposes of determining each district's audited fund balances
10in its educational fund, working cash fund, operations and
11maintenance fund, and transportation fund for the specified
12year ending June 30, as provided in paragraphs (1), (2), (3),
13(4), (5), (6), and (6.5) of this subsection (c), the balance of
14each fund shall be deemed decreased by an amount equal to the
15amount of the annual property tax theretofore levied in the
16fund by the district for collection and payment to the district
17during the calendar year in which the June 30 fell, but only to
18the extent that the tax so levied in the fund actually was
19received by the district on or before or comprised a part of
20the fund on such June 30. For purposes of determining each
21district's audited fund balances, a calculation shall be made
22for each fund to determine the average for the 3 years prior to
23the specified year ending June 30, as provided in paragraphs
24(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
25of the district's expenditures in the categories "purchased
26services", "supplies and materials", and "capital outlay", as

 

 

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1those categories are defined in rules of the State Board of
2Education. If this 3-year average is less than the district's
3expenditures in these categories for the specified year ending
4June 30, as provided in paragraphs (1), (2), (3), (4), (5),
5(6), and (6.5) of this subsection (c), then the 3-year average
6shall be used in calculating the amounts payable under this
7Section in place of the amounts shown in these categories for
8the specified year ending June 30, as provided in paragraphs
9(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
10Any deficit because of State aid not yet received may not be
11considered in determining the June 30 deficits. The same basis
12of accounting shall be used by all previously existing
13districts and by all annexing or annexed districts, as
14constituted prior to the annexation, in making any computation
15required under paragraphs (1), (2), (3), (4), (5), (6), and
16(6.5) of this subsection (c).
17    (8) The supplementary State aid payments under this
18subsection (c) shall be treated as separate from all other
19payments made pursuant to Section 18-8.05 of this Code.
20    (d)(1) Following the formation of a combined school
21district, as defined in Section 11E-20 of this Code, a new unit
22district, as defined in Section 11E-25 of this Code, a new
23elementary district or districts and a new high school district
24formed through a school district conversion, as defined in
25Section 11E-15 of this Code, a new partial elementary unit
26district, as defined in Section 11E-30 of this Code, or a new

 

 

 

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1elementary district or districts formed through a multi-unit
2conversion, as defined in subsection (b) of Section 11E-30 of
3this Code, or the annexation of all of the territory of one or
4more entire school districts by one or more other school
5districts, as defined in Article 7 of this Code, a
6supplementary State aid reimbursement shall be paid for the
7number of school years determined under the following table to
8each new or annexing district equal to the sum of $4,000 for
9each certified employee who is employed by the district on a
10full-time basis for the regular term of the school year:
 
11Reorganized District's RankReorganized District's Rank
12by type of district (unit,in Average Daily Attendance
13high school, elementary)By Quintile
14in Equalized Assessed Value
15Per Pupil by Quintile
163rd, 4th,
171st2ndor 5th
18QuintileQuintileQuintile
19    1st Quintile1 year1 year1 year
20    2nd Quintile1 year2 years2 years
21    3rd Quintile2 years3 years3 years
22    4th Quintile2 years3 years3 years
23    5th Quintile2 years3 years3 years
24The State Board of Education shall make a one-time calculation

 

 

HB2808- 210 -LRB100 11017 NHT 21256 b

1of a reorganized district's quintile ranks. The average daily
2attendance used in this calculation shall be the best 3 months'
3average daily attendance for the district's first year. The
4equalized assessed value per pupil shall be the district's real
5property equalized assessed value used in calculating the
6district's first-year general State aid claim, under Section
718-8.05 of this Code, or first-year evidence-based funding
8claim, under Section 18-8.15 of this Code, as applicable,
9divided by the best 3 months' average daily attendance.
10    No annexing or resulting school district shall be entitled
11to supplementary State aid under this subsection (d) unless the
12district acquires at least 30% of the average daily attendance
13of the district from which the territory is being detached or
14divided.
15    If a district results from multiple reorganizations that
16would otherwise qualify the district for multiple payments
17under this subsection (d) in any year, then the district shall
18receive a single payment only for that year based solely on the
19most recent reorganization.
20    (2) For an elementary opt-in, as defined in subsection (d)
21of Section 11E-30 of this Code, the full-time certified staff
22incentive shall be computed in accordance with paragraph (1) of
23this subsection (d), equal to the sum of $4,000 for each
24certified employee of the elementary district that opts-in who
25is employed by the optional elementary unit district on a
26full-time basis for the regular term of the school year. The

 

 

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1calculation from this paragraph (2) must be paid as follows:
2        (A) If the effective date for the elementary opt-in is
3    one year after the effective date for the optional
4    elementary unit district, 100% of the amount calculated in
5    this paragraph (2) shall be paid to the optional elementary
6    unit district for the number of years calculated in
7    paragraph (1) of this subsection (d) at the optional
8    elementary unit district's original effective date,
9    starting in the second year after the effective date of the
10    elementary opt-in.
11        (B) If the effective date for the elementary opt-in is
12    2 years after the effective date for the optional
13    elementary unit district, 75% of the amount calculated in
14    this paragraph (2) shall be paid to the optional elementary
15    unit district for the number of years calculated in
16    paragraph (1) of this subsection (d) at the optional
17    elementary unit district's original effective date,
18    starting in the second year after the effective date of the
19    elementary opt-in.
20        (C) If the effective date for the elementary opt-in is
21    3 years after the effective date for the optional
22    elementary unit district, 50% of the amount calculated in
23    this paragraph (2) shall be paid to the optional elementary
24    unit district for the number of years calculated in
25    paragraph (1) of this subsection (d) at the optional
26    elementary unit district's original effective date,

 

 

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1    starting in the second year after the effective date of the
2    elementary opt-in.
3        (D) If the effective date for the elementary opt-in is
4    4 years after the effective date for the optional
5    elementary unit district, 25% of the amount calculated in
6    this paragraph (2) shall be paid to the optional elementary
7    unit district for the number of years calculated in
8    paragraph (1) of this subsection (d) at the optional
9    elementary unit district's original effective date,
10    starting in the second year after the effective date of the
11    elementary opt-in.
12        (E) If the effective date for the elementary opt-in is
13    5 years after the effective date for the optional
14    elementary unit district, the optional elementary unit
15    district is not eligible for any additional incentives due
16    to the elementary opt-in.
17    (2.5) Following the formation of a cooperative high school
18by 2 or more school districts under Section 10-22.22c of this
19Code, a supplementary State aid reimbursement shall be paid for
203 school years to the cooperative high school equal to the sum
21of $4,000 for each certified employee who is employed by the
22cooperative high school on a full-time basis for the regular
23term of any such school year. If a cooperative high school
24results from multiple agreements that would otherwise qualify
25the cooperative high school for multiple payments under this
26Section in any year, the cooperative high school shall receive

 

 

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1a single payment for that year based solely on the most recent
2agreement.
3    (2.10) Following the annexation of territory detached from
4another school district whereby the enrollment of the annexing
5district increases 90% or more as a result of the annexation, a
6supplementary State aid reimbursement shall be paid to the
7annexing district equal to the sum of $4,000 for each certified
8employee who is employed by the annexing district on a
9full-time basis and shall be calculated in accordance with
10subsection (a) of this Section. To be eligible for
11supplementary State aid reimbursement under this Section, the
12intergovernmental agreement to be submitted pursuant to
13Section 7-14A of this Code must show that certified staff
14members were transferred from the control of the district
15losing territory to the control of the district gaining
16territory in the annexation. The changes to this Section made
17by Public Act 95-707 are intended to be retroactive and
18applicable to any annexation taking effect on or after July 1,
192004. For annexations that are eligible for payments under this
20paragraph (2.10) and that are effective on or after July 1,
212004, but before January 11, 2008 (the effective date of Public
22Act 95-707), the first required yearly payment under this
23paragraph (2.10) shall be paid in the second fiscal year after
24January 11, 2008 (the effective date of Public Act 95-707). Any
25subsequent required yearly payments shall be paid in subsequent
26fiscal years until the payment obligation under this paragraph

 

 

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1(2.10) is complete.
2    (2.15) Following the deactivation of a school facility in
3accordance with Section 10-22.22b of this Code, a supplementary
4State aid reimbursement shall be paid for the lesser of 3
5school years or the length of the deactivation agreement,
6including any renewals of the original deactivation agreement,
7to each receiving school district equal to the sum of $4,000
8for each certified employee who is employed by that receiving
9district on a full-time basis for the regular term of any such
10school year who was originally transferred to the control of
11that receiving district as a result of the deactivation.
12Receiving districts are eligible for payments under this
13paragraph (2.15) based on the certified employees transferred
14to that receiving district as a result of the deactivation and
15are not required to receive at least 30% of the deactivating
16district's average daily attendance as required under
17