100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4069

 

Introduced , by Rep. Robert W. Pritchard

 

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, Illinois Pension 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 Review Panel. Makes other changes in the School Code, including changes to contracts with commercial driver training schools; changes to provisions concerning unfunded mandates, including referenda procedures and repealing an existing provision; removing a daily physical education requirement and instead requiring physical education 3 times a week, with exceptions; and changes to charter school funding. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4069LRB100 13151 MLM 27546 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 17. The Illinois Pension Code is amended by
2changing Section 16-158 as follows:
 
3    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
4    (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6    Sec. 16-158. Contributions by State and other employing
7units.
8    (a) The State shall make contributions to the System by
9means of appropriations from the Common School Fund and other
10State funds of amounts which, together with other employer
11contributions, employee contributions, investment income, and
12other income, will be sufficient to meet the cost of
13maintaining and administering the System on a 90% funded basis
14in accordance with actuarial recommendations.
15    The Board shall determine the amount of State contributions
16required for each fiscal year on the basis of the actuarial
17tables and other assumptions adopted by the Board and the
18recommendations of the actuary, using the formula in subsection
19(b-3).
20    (a-1) Annually, on or before November 15 until November 15,
212011, the Board shall certify to the Governor the amount of the
22required State contribution for the coming fiscal year. The
23certification under this subsection (a-1) shall include a copy
24of the actuarial recommendations upon which it is based and
25shall specifically identify the System's projected State

 

 

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1normal cost for that fiscal year.
2    On or before May 1, 2004, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2005, taking
5into account the amounts appropriated to and received by the
6System under subsection (d) of Section 7.2 of the General
7Obligation Bond Act.
8    On or before July 1, 2005, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2006, taking
11into account the changes in required State contributions made
12by this amendatory Act of the 94th General Assembly.
13    On or before April 1, 2011, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2011, applying
16the changes made by Public Act 96-889 to the System's assets
17and liabilities as of June 30, 2009 as though Public Act 96-889
18was approved on that date.
19    (a-5) On or before November 1 of each year, beginning
20November 1, 2012, the Board shall submit to the State Actuary,
21the Governor, and the General Assembly a proposed certification
22of the amount of the required State contribution to the System
23for the next fiscal year, along with all of the actuarial
24assumptions, calculations, and data upon which that proposed
25certification is based. On or before January 1 of each year,
26beginning January 1, 2013, the State Actuary shall issue a

 

 

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1preliminary report concerning the proposed certification and
2identifying, if necessary, recommended changes in actuarial
3assumptions that the Board must consider before finalizing its
4certification of the required State contributions. On or before
5January 15, 2013 and each January 15 thereafter, the Board
6shall certify to the Governor and the General Assembly the
7amount of the required State contribution for the next fiscal
8year. The Board's certification must note any deviations from
9the State Actuary's recommended changes, the reason or reasons
10for not following the State Actuary's recommended changes, and
11the fiscal impact of not following the State Actuary's
12recommended changes on the required State contribution.
13    (b) Through State fiscal year 1995, the State contributions
14shall be paid to the System in accordance with Section 18-7 of
15the School Code.
16    (b-1) Beginning in State fiscal year 1996, on the 15th day
17of each month, or as soon thereafter as may be practicable, the
18Board shall submit vouchers for payment of State contributions
19to the System, in a total monthly amount of one-twelfth of the
20required annual State contribution certified under subsection
21(a-1). From the effective date of this amendatory Act of the
2293rd General Assembly through June 30, 2004, the Board shall
23not submit vouchers for the remainder of fiscal year 2004 in
24excess of the fiscal year 2004 certified contribution amount
25determined under this Section after taking into consideration
26the transfer to the System under subsection (a) of Section

 

 

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16z-61 of the State Finance Act. These vouchers shall be paid by
2the State Comptroller and Treasurer by warrants drawn on the
3funds appropriated to the System for that fiscal year.
4    If in any month the amount remaining unexpended from all
5other appropriations to the System for the applicable fiscal
6year (including the appropriations to the System under Section
78.12 of the State Finance Act and Section 1 of the State
8Pension Funds Continuing Appropriation Act) is less than the
9amount lawfully vouchered under this subsection, the
10difference shall be paid from the Common School Fund under the
11continuing appropriation authority provided in Section 1.1 of
12the State Pension Funds Continuing Appropriation Act.
13    (b-2) Allocations from the Common School Fund apportioned
14to school districts not coming under this System shall not be
15diminished or affected by the provisions of this Article.
16    (b-3) For State fiscal years 2012 through 2045, the minimum
17contribution to the System to be made by the State for each
18fiscal year shall be an amount determined by the System to be
19sufficient to bring the total assets of the System up to 90% of
20the total actuarial liabilities of the System by the end of
21State fiscal year 2045. In making these determinations, the
22required State contribution shall be calculated each year as a
23level percentage of payroll over the years remaining to and
24including fiscal year 2045 and shall be determined under the
25projected unit credit actuarial cost method.
26    For State fiscal years 1996 through 2005, the State

 

 

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1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3so that by State fiscal year 2011, the State is contributing at
4the rate required under this Section; except that in the
5following specified State fiscal years, the State contribution
6to the System shall not be less than the following indicated
7percentages of the applicable employee payroll, even if the
8indicated percentage will produce a State contribution in
9excess of the amount otherwise required under this subsection
10and subsection (a), and notwithstanding any contrary
11certification made under subsection (a-1) before the effective
12date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
13in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
142003; and 13.56% in FY 2004.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2006 is
17$534,627,700.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2007 is
20$738,014,500.
21    For each of State fiscal years 2008 through 2009, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24from the required State contribution for State fiscal year
252007, so that by State fiscal year 2011, the State is
26contributing at the rate otherwise required under this Section.

 

 

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1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2010 is
3$2,089,268,000 and shall be made from the proceeds of bonds
4sold in fiscal year 2010 pursuant to Section 7.2 of the General
5Obligation Bond Act, less (i) the pro rata share of bond sale
6expenses determined by the System's share of total bond
7proceeds, (ii) any amounts received from the Common School Fund
8in fiscal year 2010, and (iii) any reduction in bond proceeds
9due to the issuance of discounted bonds, if applicable.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2011 is
12the amount recertified by the System on or before April 1, 2011
13pursuant to subsection (a-1) of this Section and shall be made
14from the proceeds of bonds sold in fiscal year 2011 pursuant to
15Section 7.2 of the General Obligation Bond Act, less (i) the
16pro rata share of bond sale expenses determined by the System's
17share of total bond proceeds, (ii) any amounts received from
18the Common School Fund in fiscal year 2011, and (iii) any
19reduction in bond proceeds due to the issuance of discounted
20bonds, if applicable. This amount shall include, in addition to
21the amount certified by the System, an amount necessary to meet
22employer contributions required by the State as an employer
23under paragraph (e) of this Section, which may also be used by
24the System for contributions required by paragraph (a) of
25Section 16-127.
26    Beginning in State fiscal year 2046, the minimum State

 

 

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1contribution for each fiscal year shall be the amount needed to
2maintain the total assets of the System at 90% of the total
3actuarial liabilities of the System.
4    Amounts received by the System pursuant to Section 25 of
5the Budget Stabilization Act or Section 8.12 of the State
6Finance Act in any fiscal year do not reduce and do not
7constitute payment of any portion of the minimum State
8contribution required under this Article in that fiscal year.
9Such amounts shall not reduce, and shall not be included in the
10calculation of, the required State contributions under this
11Article in any future year until the System has reached a
12funding ratio of at least 90%. A reference in this Article to
13the "required State contribution" or any substantially similar
14term does not include or apply to any amounts payable to the
15System under Section 25 of the Budget Stabilization Act.
16    Notwithstanding any other provision of this Section, the
17required State contribution for State fiscal year 2005 and for
18fiscal year 2008 and each fiscal year thereafter, as calculated
19under this Section and certified under subsection (a-1), shall
20not exceed an amount equal to (i) the amount of the required
21State contribution that would have been calculated under this
22Section for that fiscal year if the System had not received any
23payments under subsection (d) of Section 7.2 of the General
24Obligation Bond Act, minus (ii) the portion of the State's
25total debt service payments for that fiscal year on the bonds
26issued in fiscal year 2003 for the purposes of that Section

 

 

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17.2, as determined and certified by the Comptroller, that is
2the same as the System's portion of the total moneys
3distributed under subsection (d) of Section 7.2 of the General
4Obligation Bond Act. In determining this maximum for State
5fiscal years 2008 through 2010, however, the amount referred to
6in item (i) shall be increased, as a percentage of the
7applicable employee payroll, in equal increments calculated
8from the sum of the required State contribution for State
9fiscal year 2007 plus the applicable portion of the State's
10total debt service payments for fiscal year 2007 on the bonds
11issued in fiscal year 2003 for the purposes of Section 7.2 of
12the General Obligation Bond Act, so that, by State fiscal year
132011, the State is contributing at the rate otherwise required
14under this Section.
15    (c) Payment of the required State contributions and of all
16pensions, retirement annuities, death benefits, refunds, and
17other benefits granted under or assumed by this System, and all
18expenses in connection with the administration and operation
19thereof, are obligations of the State.
20    If members are paid from special trust or federal funds
21which are administered by the employing unit, whether school
22district or other unit, the employing unit shall pay to the
23System from such funds the full accruing retirement costs based
24upon that service, which, beginning July 1, 2018 2014, shall be
25at a rate, expressed as a percentage of salary, equal to the
26total employer's minimum contribution to the System to be made

 

 

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1by the State for that fiscal year, including both normal cost
2and unfunded liability components, expressed as a percentage of
3payroll, as determined by the System under subsection (b-3) of
4this Section. Employer contributions, based on salary paid to
5members from federal funds, may be forwarded by the
6distributing agency of the State of Illinois to the System
7prior to allocation, in an amount determined in accordance with
8guidelines established by such agency and the System. Any
9contribution for fiscal year 2015 collected as a result of the
10change made by this amendatory Act of the 98th General Assembly
11shall be considered a State contribution under subsection (b-3)
12of this Section.
13    (d) Effective July 1, 1986, any employer of a teacher as
14defined in paragraph (8) of Section 16-106 shall pay the
15employer's normal cost of benefits based upon the teacher's
16service, in addition to employee contributions, as determined
17by the System. Such employer contributions shall be forwarded
18monthly in accordance with guidelines established by the
19System.
20    However, with respect to benefits granted under Section
2116-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
22of Section 16-106, the employer's contribution shall be 12%
23(rather than 20%) of the member's highest annual salary rate
24for each year of creditable service granted, and the employer
25shall also pay the required employee contribution on behalf of
26the teacher. For the purposes of Sections 16-133.4 and

 

 

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116-133.5, a teacher as defined in paragraph (8) of Section
216-106 who is serving in that capacity while on leave of
3absence from another employer under this Article shall not be
4considered an employee of the employer from which the teacher
5is on leave.
6    (e) Beginning July 1, 1998, every employer of a teacher
7shall pay to the System an employer contribution computed as
8follows:
9        (1) Beginning July 1, 1998 through June 30, 1999, the
10    employer contribution shall be equal to 0.3% of each
11    teacher's salary.
12        (2) Beginning July 1, 1999 and thereafter, the employer
13    contribution shall be equal to 0.58% of each teacher's
14    salary.
15The school district or other employing unit may pay these
16employer contributions out of any source of funding available
17for that purpose and shall forward the contributions to the
18System on the schedule established for the payment of member
19contributions.
20    These employer contributions are intended to offset a
21portion of the cost to the System of the increases in
22retirement benefits resulting from this amendatory Act of 1998.
23    Each employer of teachers is entitled to a credit against
24the contributions required under this subsection (e) with
25respect to salaries paid to teachers for the period January 1,
262002 through June 30, 2003, equal to the amount paid by that

 

 

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1employer under subsection (a-5) of Section 6.6 of the State
2Employees Group Insurance Act of 1971 with respect to salaries
3paid to teachers for that period.
4    The additional 1% employee contribution required under
5Section 16-152 by this amendatory Act of 1998 is the
6responsibility of the teacher and not the teacher's employer,
7unless the employer agrees, through collective bargaining or
8otherwise, to make the contribution on behalf of the teacher.
9    If an employer is required by a contract in effect on May
101, 1998 between the employer and an employee organization to
11pay, on behalf of all its full-time employees covered by this
12Article, all mandatory employee contributions required under
13this Article, then the employer shall be excused from paying
14the employer contribution required under this subsection (e)
15for the balance of the term of that contract. The employer and
16the employee organization shall jointly certify to the System
17the existence of the contractual requirement, in such form as
18the System may prescribe. This exclusion shall cease upon the
19termination, extension, or renewal of the contract at any time
20after May 1, 1998.
21    (f) If the amount of a teacher's salary for any school year
22used to determine final average salary exceeds the member's
23annual full-time salary rate with the same employer for the
24previous school year by more than 6%, the teacher's employer
25shall pay to the System, in addition to all other payments
26required under this Section and in accordance with guidelines

 

 

HB4069- 28 -LRB100 13151 MLM 27546 b

1established by the System, the present value of the increase in
2benefits resulting from the portion of the increase in salary
3that is in excess of 6%. This present value shall be computed
4by the System on the basis of the actuarial assumptions and
5tables used in the most recent actuarial valuation of the
6System that is available at the time of the computation. If a
7teacher's salary for the 2005-2006 school year is used to
8determine final average salary under this subsection (f), then
9the changes made to this subsection (f) by Public Act 94-1057
10shall apply in calculating whether the increase in his or her
11salary is in excess of 6%. For the purposes of this Section,
12change in employment under Section 10-21.12 of the School Code
13on or after June 1, 2005 shall constitute a change in employer.
14The System may require the employer to provide any pertinent
15information or documentation. The changes made to this
16subsection (f) by this amendatory Act of the 94th General
17Assembly apply without regard to whether the teacher was in
18service on or after its effective date.
19    Whenever it determines that a payment is or may be required
20under this subsection, the System shall calculate the amount of
21the payment and bill the employer for that amount. The bill
22shall specify the calculations used to determine the amount
23due. If the employer disputes the amount of the bill, it may,
24within 30 days after receipt of the bill, apply to the System
25in writing for a recalculation. The application must specify in
26detail the grounds of the dispute and, if the employer asserts

 

 

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1that the calculation is subject to subsection (g) or (h) of
2this Section, must include an affidavit setting forth and
3attesting to all facts within the employer's knowledge that are
4pertinent to the applicability of that subsection. Upon
5receiving a timely application for recalculation, the System
6shall review the application and, if appropriate, recalculate
7the amount due.
8    The employer contributions required under this subsection
9(f) may be paid in the form of a lump sum within 90 days after
10receipt of the bill. If the employer contributions are not paid
11within 90 days after receipt of the bill, then interest will be
12charged at a rate equal to the System's annual actuarially
13assumed rate of return on investment compounded annually from
14the 91st day after receipt of the bill. Payments must be
15concluded within 3 years after the employer's receipt of the
16bill.
17    (g) This subsection (g) applies only to payments made or
18salary increases given on or after June 1, 2005 but before July
191, 2011. The changes made by Public Act 94-1057 shall not
20require the System to refund any payments received before July
2131, 2006 (the effective date of Public Act 94-1057).
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases paid to teachers
24under contracts or collective bargaining agreements entered
25into, amended, or renewed before June 1, 2005.
26    When assessing payment for any amount due under subsection

 

 

HB4069- 30 -LRB100 13151 MLM 27546 b

1(f), the System shall exclude salary increases paid to a
2teacher at a time when the teacher is 10 or more years from
3retirement eligibility under Section 16-132 or 16-133.2.
4    When assessing payment for any amount due under subsection
5(f), the System shall exclude salary increases resulting from
6overload work, including summer school, when the school
7district has certified to the System, and the System has
8approved the certification, that (i) the overload work is for
9the sole purpose of classroom instruction in excess of the
10standard number of classes for a full-time teacher in a school
11district during a school year and (ii) the salary increases are
12equal to or less than the rate of pay for classroom instruction
13computed on the teacher's current salary and work schedule.
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude a salary increase resulting from
16a promotion (i) for which the employee is required to hold a
17certificate or supervisory endorsement issued by the State
18Teacher Certification Board that is a different certification
19or supervisory endorsement than is required for the teacher's
20previous position and (ii) to a position that has existed and
21been filled by a member for no less than one complete academic
22year and the salary increase from the promotion is an increase
23that results in an amount no greater than the lesser of the
24average salary paid for other similar positions in the district
25requiring the same certification or the amount stipulated in
26the collective bargaining agreement for a similar position

 

 

HB4069- 31 -LRB100 13151 MLM 27546 b

1requiring the same certification.
2    When assessing payment for any amount due under subsection
3(f), the System shall exclude any payment to the teacher from
4the State of Illinois or the State Board of Education over
5which the employer does not have discretion, notwithstanding
6that the payment is included in the computation of final
7average salary.
8    (h) When assessing payment for any amount due under
9subsection (f), the System shall exclude any salary increase
10described in subsection (g) of this Section given on or after
11July 1, 2011 but before July 1, 2014 under a contract or
12collective bargaining agreement entered into, amended, or
13renewed on or after June 1, 2005 but before July 1, 2011.
14Notwithstanding any other provision of this Section, any
15payments made or salary increases given after June 30, 2014
16shall be used in assessing payment for any amount due under
17subsection (f) of this Section.
18    (i) The System shall prepare a report and file copies of
19the report with the Governor and the General Assembly by
20January 1, 2007 that contains all of the following information:
21        (1) The number of recalculations required by the
22    changes made to this Section by Public Act 94-1057 for each
23    employer.
24        (2) The dollar amount by which each employer's
25    contribution to the System was changed due to
26    recalculations required by Public Act 94-1057.

 

 

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1        (3) The total amount the System received from each
2    employer as a result of the changes made to this Section by
3    Public Act 94-4.
4        (4) The increase in the required State contribution
5    resulting from the changes made to this Section by Public
6    Act 94-1057.
7    (j) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (k) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
246-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
25    Section 20. The Innovation Development and Economy Act is

 

 

HB4069- 33 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 34 -LRB100 13151 MLM 27546 b

1that the county clerk shall use for determining the total
2initial equalized assessed value of the district consistent
3with subsection (c), and a list of the parcel or tax
4identification number of each parcel of property included in
5the district.
6    (c) Upon approval of a STAR bond district, the county clerk
7immediately thereafter shall determine (i) the most recently
8ascertained equalized assessed value of each lot, block, tract,
9or parcel of real property within the STAR bond district, from
10which shall be deducted the homestead exemptions under Article
1115 of the Property Tax Code, which value shall be the initial
12equalized assessed value of each such piece of property, and
13(ii) the total equalized assessed value of all taxable real
14property within the district by adding together the most
15recently ascertained equalized assessed value of each taxable
16lot, block, tract, or parcel of real property within the
17district, from which shall be deducted the homestead exemptions
18under Article 15 of the Property Tax Code, and shall certify
19that amount as the total initial equalized assessed value of
20the taxable real property within the STAR bond district.
21    (d) In reference to any STAR bond district created within
22any political subdivision, and in respect to which the county
23clerk has certified the total initial equalized assessed value
24of the property in the area, the political subdivision may
25thereafter request the clerk in writing to adjust the initial
26equalized value of all taxable real property within the STAR

 

 

HB4069- 35 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 36 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 37 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 38 -LRB100 13151 MLM 27546 b

1county collector shall hold that amount in a separate fund
2until the appeal process is final. After the appeal process is
3finalized, the county collector shall transmit to the
4Department the amount of tax that remains, if any, after all
5required refunds are made. The Department shall pay any amount
6deposited into the Trust Fund under this Section in the same
7proportion as determined for payments for that taxable year
8under subsection (h).
9    (j) In any year that ad valorem taxes are allocated to the
10STAR Bonds School Improvement and Operations Trust Fund, that
11allocation shall not reduce or otherwise impact the school aid
12provided to any school district under the general State school
13aid formula provided for in Section 18-8.05 of the School Code
14or the evidence-based funding formula provided for in Section
1518-8.15 of the School Code.
16(Source: P.A. 96-939, eff. 6-24-10.)
 
17    Section 25. The County Economic Development Project Area
18Property Tax Allocation Act is amended by changing Section 7 as
19follows:
 
20    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
21    Sec. 7. Creation of special tax allocation fund. If a
22county has adopted property tax allocation financing by
23ordinance for an economic development project area, the
24Department has approved and certified the economic development

 

 

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

 

 

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1    are, over and above the initial equalized assessed value of
2    each property existing at the time property tax allocation
3    financing was adopted shall be allocated to and when
4    collected shall be paid to the county treasurer, who shall
5    deposit those taxes into a special fund called the special
6    tax allocation fund of the county for the purpose of paying
7    economic development project costs and obligations
8    incurred in the payment thereof.
9    The county, by an ordinance adopting property tax
10allocation financing, may pledge the funds in and to be
11deposited in the special tax allocation fund for the payment of
12obligations issued under this Act and for the payment of
13economic development project costs. No part of the current
14equalized assessed valuation of each property in the economic
15development project area attributable to any increase above the
16total initial equalized assessed value of such properties shall
17be used in calculating the general State school aid formula,
18provided for in Section 18-8 of the School Code, or the
19evidence-based funding formula, provided for in Section
2018-8.15 of the School Code, until such time as all economic
21development projects costs have been paid as provided for in
22this Section.
23    Whenever a county issues bonds for the purpose of financing
24economic development project costs, the county may provide by
25ordinance for the appointment of a trustee, which may be any
26trust company within the State, and for the establishment of

 

 

HB4069- 41 -LRB100 13151 MLM 27546 b

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

 

 

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

 

 

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

 

 

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

 

 

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1    paying economic development project costs and obligations
2    incurred in the payment of those costs.
3    (b) The county, by an ordinance adopting tax increment
4allocation financing, may pledge the monies in and to be
5deposited into the special tax allocation fund for the payment
6of obligations issued under this Act and for the payment of
7economic development project costs. No part of the current
8equalized assessed valuation of each property in the economic
9development project area attributable to any increase above the
10total initial equalized assessed value of those properties
11shall be used in calculating the general State school aid
12formula under Section 18-8 of the School Code or the
13evidence-based funding formula under Section 18-8.15 of the
14School Code until all economic development projects costs have
15been paid as provided for in this Section.
16    (c) When the economic development projects costs,
17including without limitation all county obligations financing
18economic development project costs incurred under this Act,
19have been paid, all surplus monies then remaining in the
20special tax allocation fund shall be distributed by being paid
21by the county treasurer to the county collector, who shall
22immediately pay the monies 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    (d) Upon the payment of all economic development project
3costs, retirement of obligations, and distribution of any
4excess monies under this Section, the county shall adopt an
5ordinance dissolving the special tax allocation fund for the
6economic development project area and terminating the
7designation of the economic development project area as an
8economic development project area. Thereafter, the rates of the
9taxing districts shall be extended and taxes shall be levied,
10collected, and distributed in the manner applicable in the
11absence of the adoption of tax increment allocation financing.
12    (e) Nothing in this Section shall be construed as relieving
13property in the economic development project areas from being
14assessed as provided in the Property Tax Code or as relieving
15owners of that 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.)
 
19    Section 35. The Illinois Municipal Code is amended by
20changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
21follows:
 
22    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
23    Sec. 11-74.4-3. Definitions. The following terms, wherever
24used or referred to in this Division 74.4 shall have the

 

 

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1following respective meanings, unless in any case a different
2meaning clearly appears from the context.
3    (a) For any redevelopment project area that has been
4designated pursuant to this Section by an ordinance adopted
5prior to November 1, 1999 (the effective date of Public Act
691-478), "blighted area" shall have the meaning set forth in
7this Section prior to that date.
8    On and after November 1, 1999, "blighted area" means any
9improved or vacant area within the boundaries of a
10redevelopment project area located within the territorial
11limits of the municipality where:
12        (1) If improved, industrial, commercial, and
13    residential buildings or improvements are detrimental to
14    the public safety, health, or welfare because of a
15    combination of 5 or more of the following factors, each of
16    which is (i) present, with that presence documented, to a
17    meaningful extent so that a municipality may reasonably
18    find that the factor is clearly present within the intent
19    of the Act and (ii) reasonably distributed throughout the
20    improved part of the redevelopment project area:
21            (A) Dilapidation. An advanced state of disrepair
22        or neglect of necessary repairs to the primary
23        structural components of buildings or improvements in
24        such a combination that a documented building
25        condition analysis determines that major repair is
26        required or the defects are so serious and so extensive

 

 

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

 

 

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

 

 

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

 

 

HB4069- 51 -LRB100 13151 MLM 27546 b

1        Environmental Protection Agency or United States
2        Environmental Protection Agency remediation costs for,
3        or a study conducted by an independent consultant
4        recognized as having expertise in environmental
5        remediation has determined a need for, the clean-up of
6        hazardous waste, hazardous substances, or underground
7        storage tanks required by State or federal law,
8        provided that the remediation costs constitute a
9        material impediment to the development or
10        redevelopment of the redevelopment project area.
11            (L) 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.
14        This means that the development occurred prior to the
15        adoption by the municipality of a comprehensive or
16        other community plan or that the plan was not followed
17        at the time of the area's development. This factor must
18        be documented by evidence of adverse or incompatible
19        land-use relationships, inadequate street layout,
20        improper subdivision, parcels of inadequate shape and
21        size to meet contemporary development standards, or
22        other evidence demonstrating an absence of effective
23        community planning.
24            (M) 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

 

 

HB4069- 52 -LRB100 13151 MLM 27546 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        (2) If vacant, the sound growth of the redevelopment
12    project area is impaired by a combination of 2 or more of
13    the following factors, each of which is (i) present, with
14    that presence documented, to a meaningful extent so that a
15    municipality may reasonably find that the factor is clearly
16    present within the intent of the Act and (ii) reasonably
17    distributed throughout the vacant part of the
18    redevelopment project area to which it pertains:
19            (A) Obsolete platting of vacant land that results
20        in parcels of limited or narrow size or configurations
21        of parcels of irregular size or shape that would be
22        difficult to develop on a planned basis and in a manner
23        compatible with contemporary standards and
24        requirements, or platting that failed to create
25        rights-of-ways for streets or alleys or that created
26        inadequate right-of-way widths for streets, alleys, or

 

 

HB4069- 53 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 54 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 55 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 56 -LRB100 13151 MLM 27546 b

191-478), "conservation area" shall have the meaning set forth
2in this Section prior to that date.
3    On and after November 1, 1999, "conservation area" means
4any improved area within the boundaries of a redevelopment
5project area located within the territorial limits of the
6municipality in which 50% or more of the structures in the area
7have an age of 35 years or more. Such an area is not yet a
8blighted area but because of a combination of 3 or more of the
9following factors is detrimental to the public safety, health,
10morals or welfare and such an area may become a blighted area:
11        (1) Dilapidation. An advanced state of disrepair or
12    neglect of necessary repairs to the primary structural
13    components of buildings or improvements in such a
14    combination that a documented building condition analysis
15    determines that major repair is required or the defects are
16    so serious and so extensive that the buildings must be
17    removed.
18        (2) Obsolescence. The condition or process of falling
19    into disuse. Structures have become ill-suited for the
20    original use.
21        (3) Deterioration. With respect to buildings, defects
22    including, but not limited to, major defects in the
23    secondary building components such as doors, windows,
24    porches, gutters and downspouts, and fascia. With respect
25    to surface improvements, that the condition of roadways,
26    alleys, curbs, gutters, sidewalks, off-street parking, and

 

 

HB4069- 57 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 58 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 59 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 60 -LRB100 13151 MLM 27546 b

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

 

 

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

 

 

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

 

 

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1by retailers and servicemen, on transactions at places of
2business located in the redevelopment project area or State
3Sales Tax Boundary, as the case may be, during the base year
4which shall be the calendar year immediately prior to the year
5in which the municipality adopted tax increment allocation
6financing. For purposes of computing the aggregate amount of
7such taxes for base years occurring prior to 1985, the
8Department of Revenue shall determine the Initial Sales Tax
9Amounts for such taxes and deduct therefrom an amount equal to
104% of the aggregate amount of taxes per year for each year the
11base year is prior to 1985, but not to exceed a total deduction
12of 12%. The amount so determined shall be known as the
13"Adjusted Initial Sales Tax Amounts". For purposes of
14determining the Municipal Sales Tax Increment, the Department
15of Revenue shall for each period subtract from the amount paid
16to the municipality from the Local Government Tax Fund arising
17from sales by retailers and servicemen on transactions located
18in the redevelopment project area or the State Sales Tax
19Boundary, as the case may be, the certified Initial Sales Tax
20Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
21Initial Sales Tax Amounts for the Municipal Retailers'
22Occupation Tax Act and the Municipal Service Occupation Tax
23Act. For the State Fiscal Year 1989, this calculation shall be
24made by utilizing the calendar year 1987 to determine the tax
25amounts received. For the State Fiscal Year 1990, this
26calculation shall be made by utilizing the period from January

 

 

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11, 1988, until September 30, 1988, to determine the tax amounts
2received from retailers and servicemen pursuant to the
3Municipal Retailers' Occupation Tax and the Municipal Service
4Occupation Tax Act, which shall have deducted therefrom
5nine-twelfths of the certified Initial Sales Tax Amounts, the
6Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
7Tax Amounts as appropriate. For the State Fiscal Year 1991,
8this calculation shall be made by utilizing the period from
9October 1, 1988, to June 30, 1989, to determine the tax amounts
10received from retailers and servicemen pursuant to the
11Municipal Retailers' Occupation Tax and the Municipal Service
12Occupation Tax Act which shall have deducted therefrom
13nine-twelfths of the certified Initial Sales Tax Amounts,
14Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
15Tax Amounts as appropriate. For every State Fiscal Year
16thereafter, the applicable period shall be the 12 months
17beginning July 1 and ending June 30 to determine the tax
18amounts received which shall have deducted therefrom the
19certified Initial Sales Tax Amounts, the Adjusted Initial Sales
20Tax Amounts or the Revised Initial Sales Tax Amounts, as the
21case may be.
22    (i) "Net State Sales Tax Increment" means the sum of the
23following: (a) 80% of the first $100,000 of State Sales Tax
24Increment annually generated within a State Sales Tax Boundary;
25(b) 60% of the amount in excess of $100,000 but not exceeding
26$500,000 of State Sales Tax Increment annually generated within

 

 

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1a State Sales Tax Boundary; and (c) 40% of all amounts in
2excess of $500,000 of State Sales Tax Increment annually
3generated within a State Sales Tax Boundary. If, however, a
4municipality established a tax increment financing district in
5a county with a population in excess of 3,000,000 before
6January 1, 1986, and the municipality entered into a contract
7or issued bonds after January 1, 1986, but before December 31,
81986, to finance redevelopment project costs within a State
9Sales Tax Boundary, then the Net State Sales Tax Increment
10means, for the fiscal years beginning July 1, 1990, and July 1,
111991, 100% of the State Sales Tax Increment annually generated
12within a State Sales Tax Boundary; and notwithstanding any
13other provision of this Act, for those fiscal years the
14Department of Revenue shall distribute to those municipalities
15100% of their Net State Sales Tax Increment before any
16distribution to any other municipality and regardless of
17whether or not those other municipalities will receive 100% of
18their Net State Sales Tax Increment. For Fiscal Year 1999, and
19every year thereafter until the year 2007, for any municipality
20that has not entered into a contract or has not issued bonds
21prior to June 1, 1988 to finance redevelopment project costs
22within a State Sales Tax Boundary, the Net State Sales Tax
23Increment shall be calculated as follows: By multiplying the
24Net State Sales Tax Increment by 90% in the State Fiscal Year
251999; 80% in the State Fiscal Year 2000; 70% in the State
26Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the

 

 

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1State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
2in the State Fiscal Year 2005; 20% in the State Fiscal Year
32006; and 10% in the State Fiscal Year 2007. No payment shall
4be made for State Fiscal Year 2008 and thereafter.
5    Municipalities that issued bonds in connection with a
6redevelopment project in a redevelopment project area within
7the State Sales Tax Boundary prior to July 29, 1991, or that
8entered into contracts in connection with a redevelopment
9project in a redevelopment project area before June 1, 1988,
10shall continue to receive their proportional share of the
11Illinois Tax Increment Fund distribution until the date on
12which the redevelopment project is completed or terminated. If,
13however, a municipality that issued bonds in connection with a
14redevelopment project in a redevelopment project area within
15the State Sales Tax Boundary prior to July 29, 1991 retires the
16bonds prior to June 30, 2007 or a municipality that entered
17into contracts in connection with a redevelopment project in a
18redevelopment project area before June 1, 1988 completes the
19contracts prior to June 30, 2007, then so long as the
20redevelopment project is not completed or is not terminated,
21the Net State Sales Tax Increment shall be calculated,
22beginning on the date on which the bonds are retired or the
23contracts are completed, as follows: By multiplying the Net
24State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2550% in the State Fiscal Year 2003; 40% in the State Fiscal Year
262004; 30% in the State Fiscal Year 2005; 20% in the State

 

 

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1Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
2payment shall be made for State Fiscal Year 2008 and
3thereafter. Refunding of any bonds issued prior to July 29,
41991, shall not alter the Net State Sales Tax Increment.
5    (j) "State Utility Tax Increment Amount" means an amount
6equal to the aggregate increase in State electric and gas tax
7charges imposed on owners and tenants, other than residential
8customers, of properties located within the redevelopment
9project area under Section 9-222 of the Public Utilities Act,
10over and above the aggregate of such charges as certified by
11the Department of Revenue and paid by owners and tenants, other
12than residential customers, of properties within the
13redevelopment project area during the base year, which shall be
14the calendar year immediately prior to the year of the adoption
15of the ordinance authorizing tax increment allocation
16financing.
17    (k) "Net State Utility Tax Increment" means the sum of the
18following: (a) 80% of the first $100,000 of State Utility Tax
19Increment annually generated by a redevelopment project area;
20(b) 60% of the amount in excess of $100,000 but not exceeding
21$500,000 of the State Utility Tax Increment annually generated
22by a redevelopment project area; and (c) 40% of all amounts in
23excess of $500,000 of State Utility Tax Increment annually
24generated by a redevelopment project area. For the State Fiscal
25Year 1999, and every year thereafter until the year 2007, for
26any municipality that has not entered into a contract or has

 

 

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1not issued bonds prior to June 1, 1988 to finance redevelopment
2project costs within a redevelopment project area, the Net
3State Utility Tax Increment shall be calculated as follows: By
4multiplying the Net State Utility Tax Increment by 90% in the
5State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
6in the State Fiscal Year 2001; 60% in the State Fiscal Year
72002; 50% in the State Fiscal Year 2003; 40% in the State
8Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
9State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
10No payment shall be made for the State Fiscal Year 2008 and
11thereafter.
12    Municipalities that issue bonds in connection with the
13redevelopment project during the period from June 1, 1988 until
143 years after the effective date of this Amendatory Act of 1988
15shall receive the Net State Utility Tax Increment, subject to
16appropriation, for 15 State Fiscal Years after the issuance of
17such bonds. For the 16th through the 20th State Fiscal Years
18after issuance of the bonds, the Net State Utility Tax
19Increment shall be calculated as follows: By multiplying the
20Net State Utility Tax Increment by 90% in year 16; 80% in year
2117; 70% in year 18; 60% in year 19; and 50% in year 20.
22Refunding of any bonds issued prior to June 1, 1988, shall not
23alter the revised Net State Utility Tax Increment payments set
24forth above.
25    (l) "Obligations" mean bonds, loans, debentures, notes,
26special certificates or other evidence of indebtedness issued

 

 

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

 

 

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

 

 

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

 

 

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111-74.4-5. No redevelopment plan shall be adopted unless a
2municipality complies with all of the following requirements:
3        (1) The municipality finds that the redevelopment
4    project area on the whole has not been subject to growth
5    and development through investment by private enterprise
6    and would not reasonably be anticipated to be developed
7    without the adoption of the redevelopment plan, provided,
8    however, that such a finding shall not be required with
9    respect to any redevelopment project area located within a
10    transit facility improvement area established pursuant to
11    Section 11-74.4-3.3.
12        (2) The municipality finds that the redevelopment plan
13    and project conform to the comprehensive plan for the
14    development of the municipality as a whole, or, for
15    municipalities with a population of 100,000 or more,
16    regardless of when the redevelopment plan and project was
17    adopted, the redevelopment plan and project either: (i)
18    conforms to the strategic economic development or
19    redevelopment plan issued by the designated planning
20    authority of the municipality, or (ii) includes land uses
21    that have been approved by the planning commission of the
22    municipality.
23        (3) The redevelopment plan establishes the estimated
24    dates of completion of the redevelopment project and
25    retirement of obligations issued to finance redevelopment
26    project costs. Those dates may not be later than the dates

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    such changes by mail to each affected taxing district and
2    registrant on the interested party registry, to authorize
3    the municipality to expend tax increment revenues for
4    redevelopment project costs defined by paragraphs (5) and
5    (7.5), subparagraphs (E) and (F) of paragraph (11), and
6    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
7    long as the changes do not increase the total estimated
8    redevelopment project costs set out in the redevelopment
9    plan by more than 5% after adjustment for inflation from
10    the date the plan was adopted.
11    (o) "Redevelopment project" means any public and private
12development project in furtherance of the objectives of a
13redevelopment plan. On and after November 1, 1999 (the
14effective date of Public Act 91-478), no redevelopment plan may
15be approved or amended that includes the development of vacant
16land (i) with a golf course and related clubhouse and other
17facilities or (ii) designated by federal, State, county, or
18municipal government as public land for outdoor recreational
19activities or for nature preserves and used for that purpose
20within 5 years prior to the adoption of the redevelopment plan.
21For the purpose of this subsection, "recreational activities"
22is limited to mean camping and hunting.
23    (p) "Redevelopment project area" means an area designated
24by the municipality, which is not less in the aggregate than 1
251/2 acres and in respect to which the municipality has made a
26finding that there exist conditions which cause the area to be

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    building is required to meet an increase in the need for
2    public safety purposes anticipated to result from the
3    implementation of the redevelopment plan, or (iii) the new
4    municipal public building is for the storage, maintenance,
5    or repair of transit vehicles and is located in a transit
6    facility improvement area that has been established
7    pursuant to Section 11-74.4-3.3;
8        (5) Costs of job training and retraining projects,
9    including the cost of "welfare to work" programs
10    implemented by businesses located within the redevelopment
11    project area;
12        (6) Financing costs, including but not limited to all
13    necessary and incidental expenses related to the issuance
14    of obligations and which may include payment of interest on
15    any obligations issued hereunder including interest
16    accruing during the estimated period of construction of any
17    redevelopment project for which such obligations are
18    issued and for not exceeding 36 months thereafter and
19    including reasonable reserves related thereto;
20        (7) To the extent the municipality by written agreement
21    accepts and approves the same, all or a portion of a taxing
22    district's capital costs resulting from the redevelopment
23    project necessarily incurred or to be incurred within a
24    taxing district in furtherance of the objectives of the
25    redevelopment plan and project; .
26        (7.5) For redevelopment project areas designated (or

 

 

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

 

 

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

 

 

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

 

 

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1            received tax increment finance assistance under
2            this Act;
3                (ii) for elementary school districts, no more
4            than 27% of the total amount of property tax
5            increment revenue produced by those housing units
6            that have received tax increment finance
7            assistance under this Act; and
8                (iii) for secondary school districts, no more
9            than 13% of the total amount of property tax
10            increment revenue produced by those housing units
11            that have received tax increment finance
12            assistance under this Act.
13            (C) For any school district in a municipality with
14        a population in excess of 1,000,000, the following
15        restrictions shall apply to the reimbursement of
16        increased costs under this paragraph (7.5):
17                (i) no increased costs shall be reimbursed
18            unless the school district certifies that each of
19            the schools affected by the assisted housing
20            project is at or over its student capacity;
21                (ii) the amount reimbursable shall be reduced
22            by the value of any land donated to the school
23            district by the municipality or developer, and by
24            the value of any physical improvements made to the
25            schools by the municipality or developer; and
26                (iii) the amount reimbursed may not affect

 

 

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1            amounts otherwise obligated by the terms of any
2            bonds, notes, or other funding instruments, or the
3            terms of any redevelopment agreement.
4        Any school district seeking payment under this
5        paragraph (7.5) shall, after July 1 and before
6        September 30 of each year, provide the municipality
7        with reasonable evidence to support its claim for
8        reimbursement before the municipality shall be
9        required to approve or make the payment to the school
10        district. If the school district fails to provide the
11        information during this period in any year, it shall
12        forfeit any claim to reimbursement for that year.
13        School districts may adopt a resolution waiving the
14        right to all or a portion of the reimbursement
15        otherwise required by this paragraph (7.5). By
16        acceptance of this reimbursement the school district
17        waives the right to directly or indirectly set aside,
18        modify, or contest in any manner the establishment of
19        the redevelopment project area or projects;
20        (7.7) For redevelopment project areas designated (or
21    redevelopment project areas amended to add or increase the
22    number of tax-increment-financing assisted housing units)
23    on or after January 1, 2005 (the effective date of Public
24    Act 93-961), a public library district's increased costs
25    attributable to assisted housing units located within the
26    redevelopment project area for which the developer or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1and incorporated towns and villages, school, road, park,
2sanitary, mosquito abatement, forest preserve, public health,
3fire protection, river conservancy, tuberculosis sanitarium
4and any other municipal corporations or districts with the
5power to levy taxes.
6    (u) "Taxing districts' capital costs" means those costs of
7taxing districts for capital improvements that are found by the
8municipal corporate authorities to be necessary and directly
9result from the redevelopment project.
10    (v) As used in subsection (a) of Section 11-74.4-3 of this
11Act, "vacant land" means any parcel or combination of parcels
12of real property without industrial, commercial, and
13residential buildings which has not been used for commercial
14agricultural purposes within 5 years prior to the designation
15of the redevelopment project area, unless the parcel is
16included in an industrial park conservation area or the parcel
17has been subdivided; provided that if the parcel was part of a
18larger tract that has been divided into 3 or more smaller
19tracts that were accepted for recording during the period from
201950 to 1990, then the parcel shall be deemed to have been
21subdivided, and all proceedings and actions of the municipality
22taken in that connection with respect to any previously
23approved or designated redevelopment project area or amended
24redevelopment project area are hereby validated and hereby
25declared to be legally sufficient for all purposes of this Act.
26For purposes of this Section and only for land subject to the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    liability for the overpayment on or before the mailing date
2    of the next real estate tax bill within the county. The
3    refund shall be limited to the amount of the overpayment.
4        It is the intent of this Division that after the
5    effective date of this amendatory Act of 1988 a
6    municipality's own ad valorem tax arising from levies on
7    taxable real property be included in the determination of
8    incremental revenue in the manner provided in paragraph (c)
9    of Section 11-74.4-9. If the municipality does not extend
10    such a tax, it shall annually deposit in the municipality's
11    Special Tax Increment Fund an amount equal to 10% of the
12    total contributions to the fund from all other taxing
13    districts in that year. The annual 10% deposit required by
14    this paragraph shall be limited to the actual amount of
15    municipally produced incremental tax revenues available to
16    the municipality from taxpayers located in the
17    redevelopment project area in that year if: (a) the plan
18    for the area restricts the use of the property primarily to
19    industrial purposes, (b) the municipality establishing the
20    redevelopment project area is a home-rule community with a
21    1990 population of between 25,000 and 50,000, (c) the
22    municipality is wholly located within a county with a 1990
23    population of over 750,000 and (d) the redevelopment
24    project area was established by the municipality prior to
25    June 1, 1990. This payment shall be in lieu of a
26    contribution of ad valorem taxes on real property. If no

 

 

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1    such payment is made, any redevelopment project area of the
2    municipality shall be dissolved.
3        If a municipality has adopted tax increment allocation
4    financing by ordinance and the County Clerk thereafter
5    certifies the "total initial equalized assessed value as
6    adjusted" of the taxable real property within such
7    redevelopment project area in the manner provided in
8    paragraph (b) of Section 11-74.4-9, each year after the
9    date of the certification of the total initial equalized
10    assessed value as adjusted until redevelopment project
11    costs and all municipal obligations financing
12    redevelopment project costs have been paid the ad valorem
13    taxes, if any, arising from the levies upon the taxable
14    real property in such redevelopment project area by taxing
15    districts and tax rates determined in the manner provided
16    in paragraph (c) of Section 11-74.4-9 shall be divided as
17    follows, provided, however, that with respect to any
18    redevelopment project area located within a transit
19    facility improvement area established pursuant to Section
20    11-74.4-3.3 in a municipality with a population of
21    1,000,000 or more, ad valorem taxes, if any, arising from
22    the levies upon the taxable real property in such
23    redevelopment project area shall be allocated as
24    specifically provided in this Section:
25        (1) That portion of the taxes levied upon each taxable
26        lot, block, tract or parcel of real property which is

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB4069- 112 -LRB100 13151 MLM 27546 b

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

 

 

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

 

 

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

 

 

HB4069- 115 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 116 -LRB100 13151 MLM 27546 b

1    taxes into a special fund called the special tax allocation
2    fund of the municipality for the purpose of paying
3    redevelopment project costs and obligations incurred in
4    the payment of those costs and obligations. In any county
5    with a population of 3,000,000 or more that has adopted a
6    procedure for collecting taxes that provides for one or
7    more of the installments of the taxes to be billed and
8    collected on an estimated basis, the municipal treasurer
9    shall be paid for deposit in the special tax allocation
10    fund of the municipality, from the taxes collected from
11    estimated bills issued for property in the redevelopment
12    project area, the difference between the amount actually
13    collected from each taxable lot, block, tract, or parcel of
14    real property within the redevelopment project area and an
15    amount determined by multiplying the rate at which taxes
16    were last extended against the taxable lot, block, track,
17    or parcel of real property in the manner provided in
18    subsection (b) of Section 11-74.6-40 by the initial
19    equalized assessed value or the updated initial equalized
20    assessed value of the property divided by the number of
21    installments in which real estate taxes are billed and
22    collected within the county, provided that the payments on
23    or before December 31, 1999 to a municipal treasurer shall
24    be made only if each of the following conditions are met:
25            (A) The total equalized assessed value of the
26        redevelopment project area as last determined was not

 

 

HB4069- 117 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 118 -LRB100 13151 MLM 27546 b

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

 

 

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

 

 

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

 

 

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

 

 

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1moneys under this Section, the municipality shall adopt an
2ordinance dissolving the special tax allocation fund for the
3redevelopment project area and terminating the designation of
4the redevelopment project area as a redevelopment project area.
5Thereafter the tax levies of taxing districts shall be
6extended, collected and distributed in the same manner
7applicable before the adoption of tax increment allocation
8financing. Municipality shall notify affected taxing districts
9prior to November if the redevelopment project area is to be
10terminated by December 31 of that same year.
11    Nothing in this Section shall be construed as relieving
12property in a redevelopment project area from being assessed as
13provided in the Property Tax Code or as relieving owners of
14that property from paying a uniform rate of taxes, as required
15by Section 4 of Article IX of the Illinois Constitution.
16(Source: P.A. 91-474, eff. 11-1-99.)
 
17    Section 40. The Economic Development Project Area Tax
18Increment Allocation Act of 1995 is amended by changing Section
1950 as follows:
 
20    (65 ILCS 110/50)
21    Sec. 50. Special tax allocation fund.
22    (a) If a county clerk has certified the "total initial
23equalized assessed value" of the taxable real property within
24an economic development project area in the manner provided in

 

 

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

 

 

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

 

 

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1the same manner and proportion as the most recent distribution
2by the county collector to those taxing districts of real
3property taxes from real property in the economic development
4project area.
5    (d) Upon the payment of all economic development project
6costs, retirement of obligations, and distribution of any
7excess monies under this Section and not later than 23 years
8from the date of the adoption of the ordinance establishing the
9economic development project area, the municipality shall
10adopt an ordinance dissolving the special tax allocation fund
11for the economic development project area and terminating the
12designation of the economic development project area as an
13economic development project area. Thereafter, the rates of the
14taxing districts shall be extended and taxes shall be levied,
15collected, and distributed in the manner applicable in the
16absence of the adoption of tax increment allocation financing.
17    (e) Nothing in this Section shall be construed as relieving
18property in the economic development project areas from being
19assessed as provided in the Property Tax Code or as relieving
20owners or lessees of that property from paying a uniform rate
21of taxes as required by Section 4 of Article IX of the Illinois
22Constitution.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    Section 45. The School Code is amended by changing Sections
251A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1D-1, 1E-20, 1F-20, 1F-62,

 

 

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11H-20, 1H-70, 2-3.25g, 2-3.33, 2-3.51.5, 2-3.66, 2-3.66b,
22-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19, 10-22.5a,
310-22.20, 10-22.34c, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,
413B-50, 13B-50.10, 13B-50.15, 14-7.02b, 14-13.01, 14C-1,
514C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
618-8.10, 18-9, 18-12, 26-16, 27-6, 27-7, 27-8.1, 27-24.2,
727A-9, 27A-11, 29-5, 34-2.3, 34-18, 34-18.30, and 34-43.1 and
8by adding Sections 17-3.6, 17-6.5, 18-8.15, 22-62, and 34-54.5
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

 

 

HB4069- 128 -LRB100 13151 MLM 27546 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

 

 

HB4069- 129 -LRB100 13151 MLM 27546 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

 

 

HB4069- 131 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 132 -LRB100 13151 MLM 27546 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

 

 

HB4069- 134 -LRB100 13151 MLM 27546 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

 

 

HB4069- 135 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 136 -LRB100 13151 MLM 27546 b

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

 

 

HB4069- 138 -LRB100 13151 MLM 27546 b

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 5/1D-1)
13    Sec. 1D-1. Block grant funding.
14    (a) For fiscal year 1996 through fiscal year 2017 and each
15fiscal year thereafter, the State Board of Education shall
16award to a school district having a population exceeding
17500,000 inhabitants a general education block grant and an
18educational services block grant, determined as provided in
19this Section, in lieu of distributing to the district separate
20State funding for the programs described in subsections (b) and
21(c). The provisions of this Section, however, do not apply to
22any federal funds that the district is entitled to receive. In
23accordance with Section 2-3.32, all block grants are subject to
24an audit. Therefore, block grant receipts and block grant
25expenditures shall be recorded to the appropriate fund code for

 

 

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1the designated block grant.
2    (b) The general education block grant shall include the
3following programs: REI Initiative, Summer Bridges, Preschool
4At Risk, K-6 Comprehensive Arts, School Improvement Support,
5Urban Education, Scientific Literacy, Substance Abuse
6Prevention, Second Language Planning, Staff Development,
7Outcomes and Assessment, K-6 Reading Improvement, 7-12
8Continued Reading Improvement, Truants' Optional Education,
9Hispanic Programs, Agriculture Education, Parental Education,
10Prevention Initiative, Report Cards, and Criminal Background
11Investigations. Notwithstanding any other provision of law,
12all amounts paid under the general education block grant from
13State appropriations to a school district in a city having a
14population exceeding 500,000 inhabitants shall be appropriated
15and expended by the board of that district for any of the
16programs included in the block grant or any of the board's
17lawful purposes.
18    (c) The educational services block grant shall include the
19following programs: Regular and Vocational Transportation,
20State Lunch and Free Breakfast Program, Special Education
21(Personnel, Transportation, Orphanage, Private Tuition),
22funding for children requiring special education services,
23Summer School, Educational Service Centers, and
24Administrator's Academy. This subsection (c) does not relieve
25the district of its obligation to provide the services required
26under a program that is included within the educational

 

 

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1services block grant. It is the intention of the General
2Assembly in enacting the provisions of this subsection (c) to
3relieve the district of the administrative burdens that impede
4efficiency and accompany single-program funding. The General
5Assembly encourages the board to pursue mandate waivers
6pursuant to Section 2-3.25g.
7    The funding program included in the educational services
8block grant for funding for children requiring special
9education services in each fiscal year shall be treated in that
10fiscal year as a payment to the school district in respect of
11services provided or costs incurred in the prior fiscal year,
12calculated in each case as provided in this Section. Nothing in
13this Section shall change the nature of payments for any
14program that, apart from this Section, would be or, prior to
15adoption or amendment of this Section, was on the basis of a
16payment in a fiscal year in respect of services provided or
17costs incurred in the prior fiscal year, calculated in each
18case as provided in this Section.
19    (d) For fiscal year 1996 through fiscal year 2017 and each
20fiscal year thereafter, the amount of the district's block
21grants shall be determined as follows: (i) with respect to each
22program that is included within each block grant, the district
23shall receive an amount equal to the same percentage of the
24current fiscal year appropriation made for that program as the
25percentage of the appropriation received by the district from
26the 1995 fiscal year appropriation made for that program, and

 

 

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1(ii) the total amount that is due the district under the block
2grant shall be the aggregate of the amounts that the district
3is entitled to receive for the fiscal year with respect to each
4program that is included within the block grant that the State
5Board of Education shall award the district under this Section
6for that fiscal year. In the case of the Summer Bridges
7program, the amount of the district's block grant shall be
8equal to 44% of the amount of the current fiscal year
9appropriation made for that program.
10    (e) The district is not required to file any application or
11other claim in order to receive the block grants to which it is
12entitled under this Section. The State Board of Education shall
13make payments to the district of amounts due under the
14district's block grants on a schedule determined by the State
15Board of Education.
16    (f) A school district to which this Section applies shall
17report to the State Board of Education on its use of the block
18grants in such form and detail as the State Board of Education
19may specify. In addition, the report must include the following
20description for the district, which must also be reported to
21the General Assembly: block grant allocation and expenditures
22by program; population and service levels by program; and
23administrative expenditures by program. The State Board of
24Education shall ensure that the reporting requirements for the
25district are the same as for all other school districts in this
26State.

 

 

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1    (g) Through fiscal year 2017, this This paragraph provides
2for the treatment of block grants under Article 1C for purposes
3of calculating the amount of block grants for a district under
4this Section. Those block grants under Article 1C are, for this
5purpose, treated as included in the amount of appropriation for
6the various programs set forth in paragraph (b) above. The
7appropriation in each current fiscal year for each block grant
8under Article 1C shall be treated for these purposes as
9appropriations for the individual program included in that
10block grant. The proportion of each block grant so allocated to
11each such program included in it shall be the proportion which
12the appropriation for that program was of all appropriations
13for such purposes now in that block grant, in fiscal 1995.
14    Payments to the school district under this Section with
15respect to each program for which payments to school districts
16generally, as of the date of this amendatory Act of the 92nd
17General Assembly, are on a reimbursement basis shall continue
18to be made to the district on a reimbursement basis, pursuant
19to the provisions of this Code governing those programs.
20    (h) Notwithstanding any other provision of law, any school
21district receiving a block grant under this Section may
22classify all or a portion of the funds that it receives in a
23particular fiscal year from any block grant authorized under
24this Code or from general State aid pursuant to Section 18-8.05
25of this Code (other than supplemental general State aid) as
26funds received in connection with any funding program for which

 

 

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1it is entitled to receive funds from the State in that fiscal
2year (including, without limitation, any funding program
3referred to in subsection (c) of this Section), regardless of
4the source or timing of the receipt. The district may not
5classify more funds as funds received in connection with the
6funding program than the district is entitled to receive in
7that fiscal year for that program. Any classification by a
8district must be made by a resolution of its board of
9education. The resolution must identify the amount of any block
10grant or general State aid to be classified under this
11subsection (h) and must specify the funding program to which
12the funds are to be treated as received in connection
13therewith. This resolution is controlling as to the
14classification of funds referenced therein. A certified copy of
15the resolution must be sent to the State Superintendent of
16Education. The resolution shall still take effect even though a
17copy of the resolution has not been sent to the State
18Superintendent of Education in a timely manner. No
19classification under this subsection (h) by a district shall
20affect the total amount or timing of money the district is
21entitled to receive under this Code. No classification under
22this subsection (h) by a district shall in any way relieve the
23district from or affect any requirements that otherwise would
24apply with respect to the block grant as provided in this
25Section, including any accounting of funds by source, reporting
26expenditures by original source and purpose, reporting

 

 

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1requirements, or requirements of provision of services.
2(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
397-813, eff. 7-13-12.)
 
4    (105 ILCS 5/1E-20)
5    (This Section scheduled to be repealed in accordance with
6105 ILCS 5/1E-165)
7    Sec. 1E-20. Members of Authority; meetings.
8    (a) When a petition for a School Finance Authority is
9allowed by the State Board under Section 1E-15 of this Code,
10the State Superintendent shall within 10 days thereafter
11appoint 5 members to serve on a School Finance Authority for
12the district. Of the initial members, 2 shall be appointed to
13serve a term of 2 years and 3 shall be appointed to serve a term
14of 3 years. Thereafter, each member shall serve for a term of 3
15years and until his or her successor has been appointed. The
16State Superintendent shall designate one of the members of the
17Authority to serve as its Chairperson. In the event of vacancy
18or resignation, the State Superintendent shall, within 10 days
19after receiving notice, appoint a successor to serve out that
20member's term. The State Superintendent may remove a member for
21incompetence, malfeasance, neglect of duty, or other just
22cause.
23    Members of the Authority shall be selected primarily on the
24basis of their experience and education in financial
25management, with consideration given to persons knowledgeable

 

 

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1in education finance. Two members of the Authority shall be
2residents of the school district that the Authority serves. A
3member of the Authority may not be a member of the district's
4school board or an employee of the district nor may a member
5have a direct financial interest in the district.
6    Authority members shall serve without compensation, but
7may be reimbursed by the State Board for travel and other
8necessary expenses incurred in the performance of their
9official duties. Unless paid from bonds issued under Section
101E-65 of this Code, the amount reimbursed members for their
11expenses shall be charged to the school district as part of any
12emergency financial assistance and incorporated as a part of
13the terms and conditions for repayment of the assistance or
14shall be deducted from the district's general State aid or
15evidence-based funding as provided in Section 1B-8 of this
16Code.
17    The Authority may elect such officers as it deems
18appropriate.
19    (b) The first meeting of the Authority shall be held at the
20call of the Chairperson. The Authority shall prescribe the
21times and places for its meetings and the manner in which
22regular and special meetings may be called and shall comply
23with the Open Meetings Act.
24    Three members of the Authority shall constitute a quorum.
25When a vote is taken upon any measure before the Authority, a
26quorum being present, a majority of the votes of the members

 

 

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1voting on the measure shall determine the outcome.
2(Source: P.A. 92-547, eff. 6-13-02.)
 
3    (105 ILCS 5/1F-20)
4(This Section scheduled to be repealed in accordance with 105
5ILCS 5/1F-165)
6    Sec. 1F-20. Members of Authority; meetings.
7    (a) Upon establishment of a School Finance Authority under
8Section 1F-15 of this Code, the State Superintendent shall
9within 15 days thereafter appoint 5 members to serve on a
10School Finance Authority for the district. Of the initial
11members, 2 shall be appointed to serve a term of 2 years and 3
12shall be appointed to serve a term of 3 years. Thereafter, each
13member shall serve for a term of 3 years and until his or her
14successor has been appointed. The State Superintendent shall
15designate one of the members of the Authority to serve as its
16Chairperson. In the event of vacancy or resignation, the State
17Superintendent shall, within 10 days after receiving notice,
18appoint a successor to serve out that member's term. The State
19Superintendent may remove a member for incompetence,
20malfeasance, neglect of duty, or other just cause.
21    Members of the Authority shall be selected primarily on the
22basis of their experience and education in financial
23management, with consideration given to persons knowledgeable
24in education finance. Two members of the Authority shall be
25residents of the school district that the Authority serves. A

 

 

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1member of the Authority may not be a member of the district's
2school board or an employee of the district nor may a member
3have a direct financial interest in the district.
4    Authority members shall be paid a stipend approved by the
5State Superintendent of not more than $100 per meeting and may
6be reimbursed by the State Board for travel and other necessary
7expenses incurred in the performance of their official duties.
8Unless paid from bonds issued under Section 1F-65 of this Code,
9the amount reimbursed members for their expenses shall be
10charged to the school district as part of any emergency
11financial assistance and incorporated as a part of the terms
12and conditions for repayment of the assistance or shall be
13deducted from the district's general State aid or
14evidence-based funding as provided in Section 1B-8 of this
15Code.
16    The Authority may elect such officers as it deems
17appropriate.
18    (b) The first meeting of the Authority shall be held at the
19call of the Chairperson. The Authority shall prescribe the
20times and places for its meetings and the manner in which
21regular and special meetings may be called and shall comply
22with the Open Meetings Act.
23    Three members of the Authority shall constitute a quorum.
24When a vote is taken upon any measure before the Authority, a
25quorum being present, a majority of the votes of the members
26voting on the measure shall determine the outcome.

 

 

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1(Source: P.A. 94-234, eff. 7-1-06.)
 
2    (105 ILCS 5/1F-62)
3(This Section scheduled to be repealed in accordance with 105
4ILCS 5/1F-165)
5    Sec. 1F-62. School District Emergency Financial Assistance
6Fund; grants and loans.
7    (a) Moneys in the School District Emergency Financial
8Assistance Fund established under Section 1B-8 of this Code may
9be allocated and expended by the State Board as grants to
10provide technical and consulting services to school districts
11to assess their financial condition and by the Illinois Finance
12Authority for emergency financial assistance loans to a School
13Finance Authority that petitions for emergency financial
14assistance. An emergency financial assistance loan to a School
15Finance Authority or borrowing from sources other than the
16State shall not be considered as part of the calculation of a
17district's debt for purposes of the limitation specified in
18Section 19-1 of this Code. From the amount allocated to each
19School Finance Authority, the State Board shall identify a sum
20sufficient to cover all approved costs of the School Finance
21Authority. If the State Board and State Superintendent have not
22approved emergency financial assistance in conjunction with
23the appointment of a School Finance Authority, the Authority's
24approved costs shall be paid from deductions from the
25district's general State aid or evidence-based funding.

 

 

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1    The School Finance Authority may prepare and file with the
2State Superintendent a proposal for emergency financial
3assistance for the school district and for its operations
4budget. No expenditures shall be authorized by the State
5Superintendent until he or she has approved the proposal of the
6School Finance Authority, either as submitted or in such lesser
7amount determined by the State Superintendent.
8    (b) The amount of an emergency financial assistance loan
9that may be allocated to a School Finance Authority under this
10Article, including moneys necessary for the operations of the
11School Finance Authority, and borrowing from sources other than
12the State shall not exceed, in the aggregate, $4,000 times the
13number of pupils enrolled in the district during the school
14year ending June 30 prior to the date of approval by the State
15Board of the petition for emergency financial assistance, as
16certified to the school board and the School Finance Authority
17by the State Superintendent. However, this limitation does not
18apply to borrowing by the district secured by amounts levied by
19the district prior to establishment of the School Finance
20Authority. An emergency financial assistance grant shall not
21exceed $1,000 times the number of such pupils. A district may
22receive both a loan and a grant.
23    (c) The payment of a State emergency financial assistance
24grant or loan shall be subject to appropriation by the General
25Assembly. State emergency financial assistance allocated and
26paid to a School Finance Authority under this Article may be

 

 

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1applied to any fund or funds from which the School Finance
2Authority is authorized to make expenditures by law.
3    (d) Any State emergency financial assistance proposed by
4the School Finance Authority and approved by the State
5Superintendent may be paid in its entirety during the initial
6year of the School Finance Authority's existence or spread in
7equal or declining amounts over a period of years not to exceed
8the period of the School Finance Authority's existence. The
9State Superintendent shall not approve any loan to the School
10Finance Authority unless the School Finance Authority has been
11unable to borrow sufficient funds to operate the district.
12    All loan payments made from the School District Emergency
13Financial Assistance Fund to a School Finance Authority shall
14be required to be repaid not later than the date the School
15Finance Authority ceases to exist, with simple interest over
16the term of the loan at a rate equal to 50% of the one-year
17Constant Maturity Treasury (CMT) yield as last published by the
18Board of Governors of the Federal Reserve System before the
19date on which the School Finance Authority's loan is approved
20by the State Board.
21    The School Finance Authority shall establish and the
22Illinois Finance Authority shall approve the terms and
23conditions of the loan, including the schedule of repayments.
24The schedule shall provide for repayments commencing July 1 of
25each year or upon each fiscal year's receipt of moneys from a
26tax levy for emergency financial assistance. Repayment shall be

 

 

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1incorporated into the annual budget of the district and may be
2made from any fund or funds of the district in which there are
3moneys available. Default on repayment is subject to the
4Illinois Grant Funds Recovery Act. When moneys are repaid as
5provided in this Section, they shall not be made available to
6the School Finance Authority for further use as emergency
7financial assistance under this Article at any time thereafter.
8All repayments required to be made by a School Finance
9Authority shall be received by the State Board and deposited in
10the School District Emergency Financial Assistance Fund.
11    In establishing the terms and conditions for the repayment
12obligation of the School Finance Authority, the School Finance
13Authority shall annually determine whether a separate local
14property tax levy is required to meet that obligation. The
15School Finance Authority shall provide for a separate tax levy
16for emergency financial assistance repayment purposes. This
17tax levy shall not be subject to referendum approval. The
18amount of the levy shall not exceed the amount necessary to
19meet the annual emergency financial repayment obligations of
20the district, including principal and interest, as established
21by the School Finance Authority.
22(Source: P.A. 94-234, eff. 7-1-06.)
 
23    (105 ILCS 5/1H-20)
24    Sec. 1H-20. Members of Panel; meetings.
25    (a) Upon establishment of a Financial Oversight Panel under

 

 

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1Section 1H-15 of this Code, the State Superintendent shall
2within 15 working days thereafter appoint 5 members to serve on
3a Financial Oversight Panel for the district. Members appointed
4to the Panel shall serve at the pleasure of the State
5Superintendent. The State Superintendent shall designate one
6of the members of the Panel to serve as its Chairperson. In the
7event of vacancy or resignation, the State Superintendent
8shall, within 10 days after receiving notice, appoint a
9successor to serve out that member's term.
10    (b) Members of the Panel shall be selected primarily on the
11basis of their experience and education in financial
12management, with consideration given to persons knowledgeable
13in education finance. Two members of the Panel shall be
14residents of the school district that the Panel serves. A
15member of the Panel may not be a member of the district's
16school board or an employee of the district nor may a member
17have a direct financial interest in the district.
18    (c) Panel members may be reimbursed by the State Board for
19travel and other necessary expenses incurred in the performance
20of their official duties. The amount reimbursed members for
21their expenses shall be charged to the school district as part
22of any emergency financial assistance and incorporated as a
23part of the terms and conditions for repayment of the
24assistance or shall be deducted from the district's general
25State aid or evidence-based funding as provided in Section
261H-65 of this Code.

 

 

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1    (d) With the exception of the chairperson, who shall be
2designated as provided in subsection (a) of this Section, the
3Panel may elect such officers as it deems appropriate.
4    (e) The first meeting of the Panel shall be held at the
5call of the Chairperson. The Panel shall prescribe the times
6and places for its meetings and the manner in which regular and
7special meetings may be called and shall comply with the Open
8Meetings Act. The Panel shall also comply with the Freedom of
9Information Act.
10    (f) Three members of the Panel shall constitute a quorum. A
11majority of members present is required to pass a measure.
12(Source: P.A. 97-429, eff. 8-16-11.)
 
13    (105 ILCS 5/1H-70)
14    Sec. 1H-70. Tax anticipation warrants, tax anticipation
15notes, revenue anticipation certificates or notes, general
16State aid or evidence-based funding anticipation certificates,
17and lines of credit. With the approval of the State
18Superintendent and provided that the district is unable to
19secure short-term financing after 3 attempts, a Panel shall
20have the same power as a district to do the following:
21        (1) issue tax anticipation warrants under the
22    provisions of Section 17-16 of this Code against taxes
23    levied by either the school board or the Panel pursuant to
24    Section 1H-25 of this Code;
25        (2) issue tax anticipation notes under the provisions

 

 

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1    of the Tax Anticipation Note Act against taxes levied by
2    either the school board or the Panel pursuant to Section
3    1H-25 of this Code;
4        (3) issue revenue anticipation certificates or notes
5    under the provisions of the Revenue Anticipation Act;
6        (4) issue general State aid or evidence-based funding
7    anticipation certificates under the provisions of Section
8    18-18 of this Code; and
9        (5) establish and utilize lines of credit under the
10    provisions of Section 17-17 of this Code.
11    Tax anticipation warrants, tax anticipation notes, revenue
12anticipation certificates or notes, general State aid or
13evidence-based funding anticipation certificates, and lines of
14credit are considered borrowing from sources other than the
15State and are subject to Section 1H-65 of this Code.
16(Source: P.A. 97-429, eff. 8-16-11.)
 
17    (105 ILCS 5/2-3.25g)  (from Ch. 122, par. 2-3.25g)
18    Sec. 2-3.25g. Waiver or modification of mandates within the
19School Code and administrative rules and regulations.
20    (a) In this Section:
21        "Board" means a school board or the governing board or
22    administrative district, as the case may be, for a joint
23    agreement.
24        "Eligible applicant" means a school district, joint
25    agreement made up of school districts, or regional

 

 

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1    superintendent of schools on behalf of schools and programs
2    operated by the regional office of education.
3        "Implementation date" has the meaning set forth in
4    Section 24A-2.5 of this Code.
5        "State Board" means the State Board of Education.
6    (b) Notwithstanding any other provisions of this School
7Code or any other law of this State to the contrary, eligible
8applicants may petition the State Board of Education for the
9waiver or modification of the mandates of this School Code or
10of the administrative rules and regulations promulgated by the
11State Board of Education. Waivers or modifications of
12administrative rules and regulations and modifications of
13mandates of this School Code may be requested when an eligible
14applicant demonstrates that it can address the intent of the
15rule or mandate in a more effective, efficient, or economical
16manner or when necessary to stimulate innovation or improve
17student performance. Waivers of mandates of the School Code may
18be requested when the waivers are necessary to stimulate
19innovation or improve student performance. Waivers may not be
20requested from laws, rules, and regulations pertaining to
21special education, teacher educator licensure, teacher tenure
22and seniority, or Section 5-2.1 of this Code or from compliance
23with the No Child Left Behind Act of 2001 (Public Law 107-110).
24Eligible applicants may not seek a waiver or seek a
25modification of a mandate regarding the requirements for (i)
26student performance data to be a significant factor in teacher

 

 

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1or principal evaluations or (ii) teachers and principals to be
2rated using the 4 categories of "excellent", "proficient",
3"needs improvement", or "unsatisfactory". On September 1,
42014, any previously authorized waiver or modification from
5such requirements shall terminate.
6    (c) Eligible applicants, as a matter of inherent managerial
7policy, and any Independent Authority established under
8Section 2-3.25f-5 of this Code may submit an application for a
9waiver or modification authorized under this Section. Each
10application must include a written request by the eligible
11applicant or Independent Authority and must demonstrate that
12the intent of the mandate can be addressed in a more effective,
13efficient, or economical manner or be based upon a specific
14plan for improved student performance and school improvement.
15Any eligible applicant requesting a waiver or modification for
16the reason that intent of the mandate can be addressed in a
17more economical manner shall include in the application a
18fiscal analysis showing current expenditures on the mandate and
19projected savings resulting from the waiver or modification.
20Applications and plans developed by eligible applicants must be
21approved by the board or regional superintendent of schools
22applying on behalf of schools or programs operated by the
23regional office of education following a public hearing on the
24application and plan and the opportunity for the board or
25regional superintendent to hear testimony from staff directly
26involved in its implementation, parents, and students. The time

 

 

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1period for such testimony shall be separate from the time
2period established by the eligible applicant for public comment
3on other matters. If the applicant is a school district or
4joint agreement requesting a waiver or modification of Section
527-6 of this Code, the public hearing shall be held on a day
6other than the day on which a regular meeting of the board is
7held.
8    (c-5) If the applicant is a school district, then the
9district shall post information that sets forth the time, date,
10place, and general subject matter of the public hearing on its
11Internet website at least 14 days prior to the hearing. If the
12district is requesting to increase the fee charged for driver
13education authorized pursuant to Section 27-24.2 of this Code,
14the website information shall include the proposed amount of
15the fee the district will request. All school districts must
16publish a notice of the public hearing at least 7 days prior to
17the hearing in a newspaper of general circulation within the
18school district that sets forth the time, date, place, and
19general subject matter of the hearing. Districts requesting to
20increase the fee charged for driver education shall include in
21the published notice the proposed amount of the fee the
22district will request. If the applicant is a joint agreement or
23regional superintendent, then the joint agreement or regional
24superintendent shall post information that sets forth the time,
25date, place, and general subject matter of the public hearing
26on its Internet website at least 14 days prior to the hearing.

 

 

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1If the joint agreement or regional superintendent is requesting
2to increase the fee charged for driver education authorized
3pursuant to Section 27-24.2 of this Code, the website
4information shall include the proposed amount of the fee the
5applicant will request. All joint agreements and regional
6superintendents must publish a notice of the public hearing at
7least 7 days prior to the hearing in a newspaper of general
8circulation in each school district that is a member of the
9joint agreement or that is served by the educational service
10region that sets forth the time, date, place, and general
11subject matter of the hearing, provided that a notice appearing
12in a newspaper generally circulated in more than one school
13district shall be deemed to fulfill this requirement with
14respect to all of the affected districts. Joint agreements or
15regional superintendents requesting to increase the fee
16charged for driver education shall include in the published
17notice the proposed amount of the fee the applicant will
18request. The eligible applicant must notify in writing the
19affected exclusive collective bargaining agent and those State
20legislators representing the eligible applicant's territory of
21its intent to seek approval of a waiver or modification and of
22the hearing to be held to take testimony from staff. The
23affected exclusive collective bargaining agents shall be
24notified of such public hearing at least 7 days prior to the
25date of the hearing and shall be allowed to attend such public
26hearing. The eligible applicant shall attest to compliance with

 

 

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1all of the notification and procedural requirements set forth
2in this Section.
3    (d) A request for a waiver or modification of
4administrative rules and regulations or for a modification of
5mandates contained in this School Code shall be submitted to
6the State Board of Education within 15 days after approval by
7the board or regional superintendent of schools. The
8application as submitted to the State Board of Education shall
9include a description of the public hearing. Except with
10respect to contracting for adaptive driver education, an
11eligible applicant wishing to request a modification or waiver
12of administrative rules of the State Board of Education
13regarding contracting with a commercial driver training school
14to provide the course of study authorized under Section 27-24.2
15of this Code must provide evidence with its application that
16the commercial driver training school with which it will
17contract holds a license issued by the Secretary of State under
18Article IV of Chapter 6 of the Illinois Vehicle Code and that
19each instructor employed by the commercial driver training
20school to provide instruction to students served by the school
21district holds a valid teaching certificate or teaching
22license, as applicable, issued under the requirements of this
23Code and rules of the State Board of Education. Such evidence
24must include, but need not be limited to, a list of each
25instructor assigned to teach students served by the school
26district, which list shall include the instructor's name,

 

 

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1personal identification number as required by the State Board
2of Education, birth date, and driver's license number. If the
3modification or waiver is granted, then the eligible applicant
4shall notify the State Board of Education of any changes in the
5personnel providing instruction within 15 calendar days after
6an instructor leaves the program or a new instructor is hired.
7Such notification shall include the instructor's name,
8personal identification number as required by the State Board
9of Education, birth date, and driver's license number. If a
10school district maintains an Internet website, then the
11district shall post a copy of the final contract between the
12district and the commercial driver training school on the
13district's Internet website. If no Internet website exists,
14then the district shall make available the contract upon
15request. A record of all materials in relation to the
16application for contracting must be maintained by the school
17district and made available to parents and guardians upon
18request. The instructor's date of birth and driver's license
19number and any other personally identifying information as
20deemed by the federal Driver's Privacy Protection Act of 1994
21must be redacted from any public materials. Following receipt
22of the waiver or modification request, the State Board shall
23have 45 days to review the application and request. If the
24State Board fails to disapprove the application within that 45
25day period, the waiver or modification shall be deemed granted.
26The State Board may disapprove any request if it is not based

 

 

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1upon sound educational practices, endangers the health or
2safety of students or staff, compromises equal opportunities
3for learning, or fails to demonstrate that the intent of the
4rule or mandate can be addressed in a more effective,
5efficient, or economical manner or have improved student
6performance as a primary goal. Any request disapproved by the
7State Board may be appealed to the General Assembly by the
8eligible applicant as outlined in this Section.
9    A request for a waiver from mandates contained in this
10School Code shall be submitted to the State Board within 15
11days after approval by the board or regional superintendent of
12schools. The application as submitted to the State Board of
13Education shall include a description of the public hearing.
14The description shall include, but need not be limited to, the
15means of notice, the number of people in attendance, the number
16of people who spoke as proponents or opponents of the waiver, a
17brief description of their comments, and whether there were any
18written statements submitted. The State Board shall review the
19applications and requests for completeness and shall compile
20the requests in reports to be filed with the General Assembly.
21The State Board shall file reports outlining the waivers
22requested by eligible applicants and appeals by eligible
23applicants of requests disapproved by the State Board with the
24Senate and the House of Representatives before each March 1 and
25October 1. The General Assembly may disapprove the report of
26the State Board in whole or in part within 60 calendar days

 

 

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1after each house of the General Assembly next convenes after
2the report is filed by adoption of a resolution by a record
3vote of the majority of members elected in each house. If the
4General Assembly fails to disapprove any waiver request or
5appealed request within such 60 day period, the waiver or
6modification shall be deemed granted. Any resolution adopted by
7the General Assembly disapproving a report of the State Board
8in whole or in part shall be binding on the State Board.
9    (e) An approved waiver or modification (except a waiver
10from or modification to a physical education mandate) may
11remain in effect for a period not to exceed 5 school years and
12may be renewed upon application by the eligible applicant.
13However, such waiver or modification may be changed within that
145-year period by a board or regional superintendent of schools
15applying on behalf of schools or programs operated by the
16regional office of education following the procedure as set
17forth in this Section for the initial waiver or modification
18request. If neither the State Board of Education nor the
19General Assembly disapproves, the change is deemed granted.
20    An approved waiver from or modification to a physical
21education mandate may remain in effect for a period not to
22exceed 2 school years and may be renewed no more than 2 times
23upon application by the eligible applicant. An approved waiver
24from or modification to a physical education mandate may be
25changed within the 2-year period by the board or regional
26superintendent of schools, whichever is applicable, following

 

 

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1the procedure set forth in this Section for the initial waiver
2or modification request. If neither the State Board of
3Education nor the General Assembly disapproves, the change is
4deemed granted.
5    (f) (Blank).
6(Source: P.A. 98-513, eff. 1-1-14; 98-739, eff. 7-16-14;
798-1155, eff. 1-9-15; 99-78, eff. 7-20-15.)
 
8    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
9    Sec. 2-3.33. Recomputation of claims. To recompute within
103 years from the final date for filing of a claim any claim for
11general State aid reimbursement to any school district and one
12year from the final date for filing of a claim for
13evidence-based funding if the claim has been found to be
14incorrect and to adjust subsequent claims accordingly, and to
15recompute and adjust any such claims within 6 years from the
16final date for filing when there has been an adverse court or
17administrative agency decision on the merits affecting the tax
18revenues of the school district. However, no such adjustment
19shall be made regarding equalized assessed valuation unless the
20district's equalized assessed valuation is changed by greater
21than $250,000 or 2%. Any adjustments for claims recomputed for
22the 2016-2017 school year and prior school years shall be
23applied to the apportionment of evidence-based funding in
24Section 18-8.15 of this Code beginning in the 2017-2018 school
25year and thereafter. However, the recomputation of a claim for

 

 

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1evidence-based funding for a school district shall not require
2the recomputation of claims for all districts, and the State
3Board of Education shall only make recomputations of
4evidence-based funding for those districts where an adjustment
5is required.
6    Except in the case of an adverse court or administrative
7agency decision, no recomputation of a State aid claim shall be
8made pursuant to this Section as a result of a reduction in the
9assessed valuation of a school district from the assessed
10valuation of the district reported to the State Board of
11Education by the Department of Revenue under Section 18-8.05 or
1218-8.15 of this Code unless the requirements of Section 16-15
13of the Property Tax Code and Section 2-3.84 of this Code are
14complied with in all respects.
15    This paragraph applies to all requests for recomputation of
16a general State aid or evidence-based funding claim received
17after June 30, 2003. In recomputing a general State aid or
18evidence-based funding claim that was originally calculated
19using an extension limitation equalized assessed valuation
20under paragraph (3) of subsection (G) of Section 18-8.05 of
21this Code or Section 18-8.15 of this Code, a qualifying
22reduction in equalized assessed valuation shall be deducted
23from the extension limitation equalized assessed valuation
24that was used in calculating the original claim.
25    From the total amount of general State aid or
26evidence-based funding to be provided to districts,

 

 

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1adjustments as a result of recomputation under this Section
2together with adjustments under Section 2-3.84 must not exceed
3$25 million, in the aggregate for all districts under both
4Sections combined, of the general State aid or evidence-based
5funding appropriation in any fiscal year; if necessary, amounts
6shall be prorated among districts. If it is necessary to
7prorate claims under this paragraph, then that portion of each
8prorated claim that is approved but not paid in the current
9fiscal year may be resubmitted as a valid claim in the
10following fiscal year.
11(Source: P.A. 93-845, eff. 7-30-04.)
 
12    (105 ILCS 5/2-3.51.5)
13    Sec. 2-3.51.5. School Safety and Educational Improvement
14Block Grant Program. To improve the level of education and
15safety of students from kindergarten through grade 12 in school
16districts and State-recognized, non-public schools. The State
17Board of Education is authorized to fund a School Safety and
18Educational Improvement Block Grant Program.
19    (1) For school districts, the program shall provide funding
20for school safety, textbooks and software, electronic
21textbooks and the technological equipment necessary to gain
22access to and use electronic textbooks, teacher training and
23curriculum development, school improvements, school report
24cards under Section 10-17a, and criminal history records checks
25under Sections 10-21.9 and 34-18.5. For State-recognized,

 

 

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1non-public schools, the program shall provide funding for
2secular textbooks and software, criminal history records
3checks, and health and safety mandates to the extent that the
4funds are expended for purely secular purposes. A school
5district or laboratory school as defined in Section 18-8, or
618-8.05, or 18-8.15 is not required to file an application in
7order to receive the categorical funding to which it is
8entitled under this Section. Funds for the School Safety and
9Educational Improvement Block Grant Program shall be
10distributed to school districts and laboratory schools based on
11the prior year's best 3 months average daily attendance. Funds
12for the School Safety and Educational Improvement Block Grant
13Program shall be distributed to State-recognized, non-public
14schools based on the average daily attendance figure for the
15previous school year provided to the State Board of Education.
16The State Board of Education shall develop an application that
17requires State-recognized, non-public schools to submit
18average daily attendance figures. A State-recognized,
19non-public school must submit the application and average daily
20attendance figure prior to receiving funds under this Section.
21The State Board of Education shall promulgate rules and
22regulations necessary for the implementation of this program.
23    (2) Distribution of moneys to school districts and
24State-recognized, non-public schools shall be made in 2
25semi-annual installments, one payment on or before October 30,
26and one payment prior to April 30, of each fiscal year.

 

 

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

 

 

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1to regular school attendance, in an optional education program
2which may be established by school board policy and is in
3conformance with rules adopted by the State Board of Education.
4Truants' Alternative and Optional Education programs funded
5pursuant to this Section shall be planned by a student, the
6student's parents or legal guardians, unless the student is 18
7years or older, and school officials and shall culminate in an
8individualized optional education plan. Such plan shall focus
9on academic or vocational skills, or both, and may include, but
10not be limited to, evening school, summer school, community
11college courses, adult education, preparation courses for high
12school equivalency testing, vocational training, work
13experience, programs to enhance self concept and parenting
14courses. School districts which are awarded grants pursuant to
15this Section shall be authorized to provide day care services
16to children of students who are eligible and desire to enroll
17in programs established and funded under this Section, but only
18if and to the extent that such day care is necessary to enable
19those eligible students to attend and participate in the
20programs and courses which are conducted pursuant to this
21Section. School districts and regional offices of education may
22claim general State aid under Section 18-8.05 or evidence-based
23funding under Section 18-8.15 for students enrolled in truants'
24alternative and optional education programs, provided that
25such students are receiving services that are supplemental to a
26program leading to a high school diploma and are otherwise

 

 

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1eligible to be claimed for general State aid under Section
218-8.05 or evidence-based funding under Section 18-8.15, as
3applicable.
4(Source: P.A. 98-718, eff. 1-1-15.)
 
5    (105 ILCS 5/2-3.66b)
6    Sec. 2-3.66b. IHOPE Program.
7    (a) There is established the Illinois Hope and Opportunity
8Pathways through Education (IHOPE) Program. The State Board of
9Education shall implement and administer the IHOPE Program. The
10goal of the IHOPE Program is to develop a comprehensive system
11in this State to re-enroll significant numbers of high school
12dropouts in programs that will enable them to earn their high
13school diploma.
14    (b) The IHOPE Program shall award grants, subject to
15appropriation for this purpose, to educational service regions
16and a school district organized under Article 34 of this Code
17from appropriated funds to assist in establishing
18instructional programs and other services designed to
19re-enroll high school dropouts. From any funds appropriated for
20the IHOPE Program, the State Board of Education may use up to
215% for administrative costs, including the performance of a
22program evaluation and the hiring of staff to implement and
23administer the program.
24    The IHOPE Program shall provide incentive grant funds for
25regional offices of education and a school district organized

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1IHOPE Plan would be approved by State Board, and other rules to
2develop the IHOPE Program.
3(Source: P.A. 96-106, eff. 7-30-09.)
 
4    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
5    Sec. 2-3.84. In calculating the amount of State aid to be
6apportioned to the various school districts in this State, the
7State Board of Education shall incorporate and deduct the total
8aggregate adjustments to assessments made by the State Property
9Tax Appeal Board or Cook County Board of Appeals, as reported
10pursuant to Section 16-15 of the Property Tax Code or Section
11129.1 of the Revenue Act of 1939 by the Department of Revenue,
12from the equalized assessed valuation that is otherwise to be
13utilized in the initial calculation.
14    From the total amount of general State aid or
15evidence-based funding to be provided to districts,
16adjustments under this Section together with adjustments as a
17result of recomputation under Section 2-3.33 must not exceed
18$25 million, in the aggregate for all districts under both
19Sections combined, of the general State aid or evidence-based
20funding appropriation in any fiscal year; if necessary, amounts
21shall be prorated among districts. If it is necessary to
22prorate claims under this paragraph, then that portion of each
23prorated claim that is approved but not paid in the current
24fiscal year may be resubmitted as a valid claim in the
25following fiscal year.

 

 

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1(Source: P.A. 93-845, eff. 7-30-04.)
 
2    (105 ILCS 5/2-3.109a)
3    Sec. 2-3.109a. Laboratory schools grant eligibility. A
4laboratory school as defined in Section 18-8 or 18-8.15 may
5apply for and be eligible to receive, subject to the same
6restrictions applicable to school districts, any grant
7administered by the State Board of Education that is available
8for school districts.
9(Source: P.A. 90-566, eff. 1-2-98.)
 
10    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
11    Sec. 3-14.21. Inspection of schools.
12    (a) The regional superintendent shall inspect and survey
13all public schools under his or her supervision and notify the
14board of education, or the trustees of schools in a district
15with trustees, in writing before July 30, whether or not the
16several schools in their district have been kept as required by
17law, using forms provided by the State Board of Education which
18are based on the Health/Life Safety Code for Public Schools
19adopted under Section 2-3.12. The regional superintendent
20shall report his or her findings to the State Board of
21Education on forms provided by the State Board of Education.
22    (b) If the regional superintendent determines that a school
23board has failed in a timely manner to correct urgent items
24identified in a previous life-safety report completed under

 

 

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

 

 

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

 

 

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1district is created, except that those districts whose
2enrollment increases by 90% or more as a result of annexing
3territory detached from another district pursuant to this
4Article are eligible for supplementary State aid payments in
5accordance with Section 11E-135 of this Code. Eligible annexing
6districts shall apply to the State Board of Education for
7supplementary State aid payments by submitting enrollment
8figures for the year immediately preceding and the year
9immediately following the effective date of the boundary change
10for both the district gaining territory and the district losing
11territory. Copies of any intergovernmental agreements between
12the district gaining territory and the district losing
13territory detailing any transfer of fund balances and staff
14must also be submitted. In all instances of changes in
15boundaries, the district losing territory shall not count the
16average daily attendance of pupils living in the territory
17during the year preceding the effective date of the boundary
18change in its claim for reimbursement under Section 18-8.05 or
1918-8.15 of this Code for the school year following the
20effective date of the change in boundaries and the district
21receiving the territory shall count the average daily
22attendance of pupils living in the territory during the year
23preceding the effective date of the boundary change in its
24claim for reimbursement under Section 18-8.05 or 18-8.15 of
25this Code for the school year following the effective date of
26the change in boundaries. The changes to this Section made by

 

 

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1this amendatory Act of the 95th General Assembly are intended
2to be retroactive and applicable to any annexation taking
3effect on or after July 1, 2004.
4(Source: P.A. 99-657, eff. 7-28-16.)
 
5    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
6    Sec. 10-17a. State, school district, and school report
7cards.
8    (1) By October 31, 2013 and October 31 of each subsequent
9school year, the State Board of Education, through the State
10Superintendent of Education, shall prepare a State report card,
11school district report cards, and school report cards, and
12shall by the most economic means provide to each school
13district in this State, including special charter districts and
14districts subject to the provisions of Article 34, the report
15cards for the school district and each of its schools.
16    (2) In addition to any information required by federal law,
17the State Superintendent shall determine the indicators and
18presentation of the school report card, which must include, at
19a minimum, the most current data possessed by the State Board
20of Education related to the following:
21        (A) school characteristics and student demographics,
22    including average class size, average teaching experience,
23    student racial/ethnic breakdown, and the percentage of
24    students classified as low-income; the percentage of
25    students classified as English learners; the percentage of

 

 

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1    students who have individualized education plans or 504
2    plans that provide for special education services; the
3    percentage of students who annually transferred in or out
4    of the school district; the per-pupil operating
5    expenditure of the school district; and the per-pupil State
6    average operating expenditure for the district type
7    (elementary, high school, or unit);
8        (B) curriculum information, including, where
9    applicable, Advanced Placement, International
10    Baccalaureate or equivalent courses, dual enrollment
11    courses, foreign language classes, school personnel
12    resources (including Career Technical Education teachers),
13    before and after school programs, extracurricular
14    activities, subjects in which elective classes are
15    offered, health and wellness initiatives (including the
16    average number of days of Physical Education per week per
17    student), approved programs of study, awards received,
18    community partnerships, and special programs such as
19    programming for the gifted and talented, students with
20    disabilities, and work-study students;
21        (C) student outcomes, including, where applicable, the
22    percentage of students deemed proficient on assessments of
23    State standards, the percentage of students in the eighth
24    grade who pass Algebra, the percentage of students enrolled
25    in post-secondary institutions (including colleges,
26    universities, community colleges, trade/vocational

 

 

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1    schools, and training programs leading to career
2    certification within 2 semesters of high school
3    graduation), the percentage of students graduating from
4    high school who are college and career ready, and the
5    percentage of graduates enrolled in community colleges,
6    colleges, and universities who are in one or more courses
7    that the community college, college, or university
8    identifies as a developmental course;
9        (D) student progress, including, where applicable, the
10    percentage of students in the ninth grade who have earned 5
11    credits or more without failing more than one core class, a
12    measure of students entering kindergarten ready to learn, a
13    measure of growth, and the percentage of students who enter
14    high school on track for college and career readiness;
15        (E) the school environment, including, where
16    applicable, the percentage of students with less than 10
17    absences in a school year, the percentage of teachers with
18    less than 10 absences in a school year for reasons other
19    than professional development, leaves taken pursuant to
20    the federal Family Medical Leave Act of 1993, long-term
21    disability, or parental leaves, the 3-year average of the
22    percentage of teachers returning to the school from the
23    previous year, the number of different principals at the
24    school in the last 6 years, 2 or more indicators from any
25    school climate survey selected or approved by the State and
26    administered pursuant to Section 2-3.153 of this Code, with

 

 

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1    the same or similar indicators included on school report
2    cards for all surveys selected or approved by the State
3    pursuant to Section 2-3.153 of this Code, and the combined
4    percentage of teachers rated as proficient or excellent in
5    their most recent evaluation; and
6        (F) a school district's and its individual schools'
7    balanced accountability measure, in accordance with
8    Section 2-3.25a of this Code; .
9        (G) a school district's Final Percent of Adequacy, as
10    defined in paragraph (4) of subsection (f) of Section
11    18-8.15 of this Code;
12        (H) a school district's Local Capacity Target, as
13    defined in paragraph (2) of subsection (c) of Section
14    18-8.15 of this Code, displayed as a percentage amount; and
15        (I) a school district's Real Receipts, as defined in
16    paragraph (1) of subsection (d) of Section 18-8.15 of this
17    Code, divided by a school district's Adequacy Target, as
18    defined in paragraph (1) of subsection (b) of Section
19    18-8.15 of this Code, displayed as a percentage amount.
20    The school report card shall also provide information that
21allows for comparing the current outcome, progress, and
22environment data to the State average, to the school data from
23the past 5 years, and to the outcomes, progress, and
24environment of similar schools based on the type of school and
25enrollment of low-income students, special education students,
26and English learners.

 

 

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1    (3) At the discretion of the State Superintendent, the
2school district report card shall include a subset of the
3information identified in paragraphs (A) through (E) of
4subsection (2) of this Section, as well as information relating
5to the operating expense per pupil and other finances of the
6school district, and the State report card shall include a
7subset of the information identified in paragraphs (A) through
8(E) of subsection (2) of this Section.
9    (4) Notwithstanding anything to the contrary in this
10Section, in consultation with key education stakeholders, the
11State Superintendent shall at any time have the discretion to
12amend or update any and all metrics on the school, district, or
13State report card.
14    (5) Annually, no more than 30 calendar days after receipt
15of the school district and school report cards from the State
16Superintendent of Education, each school district, including
17special charter districts and districts subject to the
18provisions of Article 34, shall present such report cards at a
19regular school board meeting subject to applicable notice
20requirements, post the report cards on the school district's
21Internet web site, if the district maintains an Internet web
22site, make the report cards available to a newspaper of general
23circulation serving the district, and, upon request, send the
24report cards home to a parent (unless the district does not
25maintain an Internet web site, in which case the report card
26shall be sent home to parents without request). If the district

 

 

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1posts the report card on its Internet web site, the district
2shall send a written notice home to parents stating (i) that
3the report card is available on the web site, (ii) the address
4of the web site, (iii) that a printed copy of the report card
5will be sent to parents upon request, and (iv) the telephone
6number that parents may call to request a printed copy of the
7report card.
8    (6) Nothing contained in this amendatory Act of the 98th
9General Assembly repeals, supersedes, invalidates, or
10nullifies final decisions in lawsuits pending on the effective
11date of this amendatory Act of the 98th General Assembly in
12Illinois courts involving the interpretation of Public Act
1397-8.
14(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
15eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
16    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
17    Sec. 10-19. Length of school term - experimental programs.
18Each school board shall annually prepare a calendar for the
19school term, specifying the opening and closing dates and
20providing a minimum term of at least 185 days to insure 176
21days of actual pupil attendance, computable under Section
2218-8.05 or 18-8.15, except that for the 1980-1981 school year
23only 175 days of actual pupil attendance shall be required
24because of the closing of schools pursuant to Section 24-2 on
25January 29, 1981 upon the appointment by the President of that

 

 

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1day as a day of thanksgiving for the freedom of the Americans
2who had been held hostage in Iran. Any days allowed by law for
3teachers' institutes but not used as such or used as parental
4institutes as provided in Section 10-22.18d shall increase the
5minimum term by the school days not so used. Except as provided
6in Section 10-19.1, the board may not extend the school term
7beyond such closing date unless that extension of term is
8necessary to provide the minimum number of computable days. In
9case of such necessary extension school employees shall be paid
10for such additional time on the basis of their regular
11contracts. A school board may specify a closing date earlier
12than that set on the annual calendar when the schools of the
13district have provided the minimum number of computable days
14under this Section. Nothing in this Section prevents the board
15from employing superintendents of schools, principals and
16other nonteaching personnel for a period of 12 months, or in
17the case of superintendents for a period in accordance with
18Section 10-23.8, or prevents the board from employing other
19personnel before or after the regular school term with payment
20of salary proportionate to that received for comparable work
21during the school term.
22    A school board may make such changes in its calendar for
23the school term as may be required by any changes in the legal
24school holidays prescribed in Section 24-2. A school board may
25make changes in its calendar for the school term as may be
26necessary to reflect the utilization of teachers' institute

 

 

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1days as parental institute days as provided in Section
210-22.18d.
3    The calendar for the school term and any changes must be
4submitted to and approved by the regional superintendent of
5schools before the calendar or changes may take effect.
6    With the prior approval of the State Board of Education and
7subject to review by the State Board of Education every 3
8years, any school board may, by resolution of its board and in
9agreement with affected exclusive collective bargaining
10agents, establish experimental educational programs, including
11but not limited to programs for e-learning days as authorized
12under Section 10-20.56 of this Code, self-directed learning, or
13outside of formal class periods, which programs when so
14approved shall be considered to comply with the requirements of
15this Section as respects numbers of days of actual pupil
16attendance and with the other requirements of this Act as
17respects courses of instruction.
18(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
19    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
20    Sec. 10-22.5a. Attendance by dependents of United States
21military personnel, foreign exchange students, and certain
22nonresident pupils.
23    (a) To enter into written agreements with cultural exchange
24organizations, or with nationally recognized eleemosynary
25institutions that promote excellence in the arts, mathematics,

 

 

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1or science. The written agreements may provide for tuition free
2attendance at the local district school by foreign exchange
3students, or by nonresident pupils of eleemosynary
4institutions. The local board of education, as part of the
5agreement, may require that the cultural exchange program or
6the eleemosynary institutions provide services to the district
7in exchange for the waiver of nonresident tuition.
8    To enter into written agreements with adjacent school
9districts to provide for tuition free attendance by a student
10of the adjacent district when requested for the student's
11health and safety by the student or parent and both districts
12determine that the student's health or safety will be served by
13such attendance. Districts shall not be required to enter into
14such agreements nor be required to alter existing
15transportation services due to the attendance of such
16non-resident pupils.
17    (a-5) If, at the time of enrollment, a dependent of United
18States military personnel is housed in temporary housing
19located outside of a school district, but will be living within
20the district within 60 days after the time of initial
21enrollment, the dependent must be allowed to enroll, subject to
22the requirements of this subsection (a-5), and must not be
23charged tuition. Any United States military personnel
24attempting to enroll a dependent under this subsection (a-5)
25shall provide proof that the dependent will be living within
26the district within 60 days after the time of initial

 

 

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1enrollment. Proof of residency may include, but is not limited
2to, postmarked mail addressed to the military personnel and
3sent to an address located within the district, a lease
4agreement for occupancy of a residence located within the
5district, or proof of ownership of a residence located within
6the district.
7    (b) Nonresident pupils and foreign exchange students
8attending school on a tuition free basis under such agreements
9and nonresident dependents of United States military personnel
10attending school on a tuition free basis may be counted for the
11purposes of determining the apportionment of State aid provided
12under Section 18-8.05 or 18-8.15 of this Code. No organization
13or institution participating in agreements authorized under
14this Section may exclude any individual for participation in
15its program on account of the person's race, color, sex,
16religion or nationality.
17(Source: P.A. 98-739, eff. 7-16-14.)
 
18    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
19    Sec. 10-22.20. Classes for adults and youths whose
20schooling has been interrupted; conditions for State
21reimbursement; use of child care facilities.
22    (a) To establish special classes for the instruction (1) of
23persons of age 21 years or over and (2) of persons less than
24age 21 and not otherwise in attendance in public school, for
25the purpose of providing adults in the community and youths

 

 

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1whose schooling has been interrupted with such additional basic
2education, vocational skill training, and other instruction as
3may be necessary to increase their qualifications for
4employment or other means of self-support and their ability to
5meet their responsibilities as citizens, including courses of
6instruction regularly accepted for graduation from elementary
7or high schools and for Americanization and high school
8equivalency testing review classes.
9    The board shall pay the necessary expenses of such classes
10out of school funds of the district, including costs of student
11transportation and such facilities or provision for child-care
12as may be necessary in the judgment of the board to permit
13maximum utilization of the courses by students with children,
14and other special needs of the students directly related to
15such instruction. The expenses thus incurred shall be subject
16to State reimbursement, as provided in this Section. The board
17may make a tuition charge for persons taking instruction who
18are not subject to State reimbursement, such tuition charge not
19to exceed the per capita cost of such classes.
20    The cost of such instruction, including the additional
21expenses herein authorized, incurred for recipients of
22financial aid under the Illinois Public Aid Code, or for
23persons for whom education and training aid has been authorized
24under Section 9-8 of that Code, shall be assumed in its
25entirety from funds appropriated by the State to the Illinois
26Community College Board.

 

 

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1    (b) The Illinois Community College Board shall establish
2the standards for the courses of instruction reimbursed under
3this Section. The Illinois Community College Board shall
4supervise the administration of the programs. The Illinois
5Community College Board shall determine the cost of instruction
6in accordance with standards established by the Illinois
7Community College Board, including therein other incidental
8costs as herein authorized, which shall serve as the basis of
9State reimbursement in accordance with the provisions of this
10Section. In the approval of programs and the determination of
11the cost of instruction, the Illinois Community College Board
12shall provide for the maximum utilization of federal funds for
13such programs. The Illinois Community College Board shall also
14provide for:
15        (1) the development of an index of need for program
16    planning and for area funding allocations, as defined by
17    the Illinois Community College Board;
18        (2) the method for calculating hours of instruction, as
19    defined by the Illinois Community College Board, claimable
20    for reimbursement and a method to phase in the calculation
21    and for adjusting the calculations in cases where the
22    services of a program are interrupted due to circumstances
23    beyond the control of the program provider;
24        (3) a plan for the reallocation of funds to increase
25    the amount allocated for grants based upon program
26    performance as set forth in subsection (d) below; and

 

 

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1        (4) the development of standards for determining
2    grants based upon performance as set forth in subsection
3    (d) below and a plan for the phased-in implementation of
4    those standards.
5    For instruction provided by school districts and community
6college districts beginning July 1, 1996 and thereafter,
7reimbursement provided by the Illinois Community College Board
8for classes authorized by this Section shall be provided from
9funds appropriated for the reimbursement criteria set forth in
10subsection (c) below.
11    (c) Upon the annual approval of the Illinois Community
12College Board, reimbursement shall be first provided for
13transportation, child care services, and other special needs of
14the students directly related to instruction and then from the
15funds remaining an amount equal to the product of the total
16credit hours or units of instruction approved by the Illinois
17Community College Board, multiplied by the following:
18        (1) For adult basic education, the maximum
19    reimbursement per credit hour or per unit of instruction
20    shall be equal to (i) through fiscal year 2017, the general
21    state aid per pupil foundation level established in
22    subsection (B) of Section 18-8.05, divided by 60, or (ii)
23    in fiscal year 2018 and thereafter, the prior fiscal year
24    reimbursement level multiplied by the Consumer Price Index
25    for All Urban Consumers for all items published by the
26    United States Department of Labor;

 

 

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1        (2) The maximum reimbursement per credit hour or per
2    unit of instruction in subparagraph (1) above shall be
3    weighted for students enrolled in classes defined as
4    vocational skills and approved by the Illinois Community
5    College Board by 1.25;
6        (3) The maximum reimbursement per credit hour or per
7    unit of instruction in subparagraph (1) above shall be
8    multiplied by .90 for students enrolled in classes defined
9    as adult secondary education programs and approved by the
10    Illinois Community College Board;
11        (4) (Blank); and
12        (5) Funding for program years after 1999-2000 shall be
13    determined by the Illinois Community College Board.
14    (d) Upon its annual approval, the Illinois Community
15College Board shall provide grants to eligible programs for
16supplemental activities to improve or expand services under the
17Adult Education Act. Eligible programs shall be determined
18based upon performance outcomes of students in the programs as
19set by the Illinois Community College Board.
20    (e) Reimbursement under this Section shall not exceed the
21actual costs of the approved program.
22    If the amount appropriated to the Illinois Community
23College Board for reimbursement under this Section is less than
24the amount required under this Act, the apportionment shall be
25proportionately reduced.
26    School districts and community college districts may

 

 

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1assess students up to $3.00 per credit hour, for classes other
2than Adult Basic Education level programs, if needed to meet
3program costs.
4    (f) An education plan shall be established for each adult
5or youth whose schooling has been interrupted and who is
6participating in the instructional programs provided under
7this Section.
8    Each school board and community college shall keep an
9accurate and detailed account of the students assigned to and
10receiving instruction under this Section who are subject to
11State reimbursement and shall submit reports of services
12provided commencing with fiscal year 1997 as required by the
13Illinois Community College Board.
14    For classes authorized under this Section, a credit hour or
15unit of instruction is equal to 15 hours of direct instruction
16for students enrolled in approved adult education programs at
17midterm and making satisfactory progress, in accordance with
18standards established by the Illinois Community College Board.
19    (g) Upon proof submitted to the Illinois Department of
20Human Services of the payment of all claims submitted under
21this Section, that Department shall apply for federal funds
22made available therefor and any federal funds so received shall
23be paid into the General Revenue Fund in the State Treasury.
24    School districts or community colleges providing classes
25under this Section shall submit applications to the Illinois
26Community College Board for preapproval in accordance with the

 

 

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1standards established by the Illinois Community College Board.
2Payments shall be made by the Illinois Community College Board
3based upon approved programs. Interim expenditure reports may
4be required by the Illinois Community College Board. Final
5claims for the school year shall be submitted to the regional
6superintendents for transmittal to the Illinois Community
7College Board. Final adjusted payments shall be made by
8September 30.
9    If a school district or community college district fails to
10provide, or is providing unsatisfactory or insufficient
11classes under this Section, the Illinois Community College
12Board may enter into agreements with public or private
13educational or other agencies other than the public schools for
14the establishment of such classes.
15    (h) If a school district or community college district
16establishes child-care facilities for the children of
17participants in classes established under this Section, it may
18extend the use of these facilities to students who have
19obtained employment and to other persons in the community whose
20children require care and supervision while the parent or other
21person in charge of the children is employed or otherwise
22absent from the home during all or part of the day. It may make
23the facilities available before and after as well as during
24regular school hours to school age and preschool age children
25who may benefit thereby, including children who require care
26and supervision pending the return of their parent or other

 

 

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1person in charge of their care from employment or other
2activity requiring absence from the home.
3    The Illinois Community College Board shall pay to the board
4the cost of care in the facilities for any child who is a
5recipient of financial aid under the Illinois Public Aid Code.
6    The board may charge for care of children for whom it
7cannot make claim under the provisions of this Section. The
8charge shall not exceed per capita cost, and to the extent
9feasible, shall be fixed at a level which will permit
10utilization by employed parents of low or moderate income. It
11may also permit any other State or local governmental agency or
12private agency providing care for children to purchase care.
13    After July 1, 1970 when the provisions of Section 10-20.20
14become operative in the district, children in a child-care
15facility shall be transferred to the kindergarten established
16under that Section for such portion of the day as may be
17required for the kindergarten program, and only the prorated
18costs of care and training provided in the Center for the
19remaining period shall be charged to the Illinois Department of
20Human Services or other persons or agencies paying for such
21care.
22    (i) The provisions of this Section shall also apply to
23school districts having a population exceeding 500,000.
24    (j) In addition to claiming reimbursement under this
25Section, a school district may claim general State aid under
26Section 18-8.05 or evidence-based funding under Section

 

 

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118-8.15 for any student under age 21 who is enrolled in courses
2accepted for graduation from elementary or high school and who
3otherwise meets the requirements of Section 18-8.05 or 18-8.15,
4as applicable.
5(Source: P.A. 98-718, eff. 1-1-15.)
 
6    (105 ILCS 5/10-22.34c)
7    Sec. 10-22.34c. Third party non-instructional services.
8    (a) A board of education may enter into a contract with a
9third party for non-instructional services currently performed
10by any employee or bargaining unit member or lay off those
11educational support personnel employees upon 90 days written
12notice to the affected employees, provided that:
13        (1) a contract must not be entered into and become
14    effective during the term of a collective bargaining
15    agreement, as that term is set forth in the agreement,
16    covering any employees who perform the non-instructional
17    services;
18        (2) a contract may only take effect upon the expiration
19    of an existing collective bargaining agreement;
20        (3) any third party that submits a bid to perform the
21    non-instructional services shall provide the following:
22            (A) evidence of liability insurance in scope and
23        amount equivalent to the liability insurance provided
24        by the school board pursuant to Section 10-22.3 of this
25        Code;

 

 

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1            (B) (blank); a benefits package for the third
2        party's employees who will perform the
3        non-instructional services comparable to the benefits
4        package provided to school board employees who perform
5        those services;
6            (C) a list of the number of employees who will
7        provide the non-instructional services, the job
8        classifications of those employees, and the wages the
9        third party will pay those employees;
10            (D) a minimum 3-year cost projection, using
11        generally accepted accounting principles and which the
12        third party is prohibited from increasing if the bid is
13        accepted by the school board, for each and every
14        expenditure category and account for performing the
15        non-instructional services; if the bid is accepted,
16        the school board shall file a copy of the cost
17        projection submitted with the bid to the State Board of
18        Education;
19            (E) composite information about the criminal and
20        disciplinary records, including alcohol or other
21        substance abuse, Department of Children and Family
22        Services complaints and investigations, traffic
23        violations, and license revocations or any other
24        licensure problems, of any employees who may perform
25        the non-instructional services, provided that the
26        individual names and other identifying information of

 

 

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1        employees need not be provided with the submission of
2        the bid, but must be made available upon request of the
3        school board; and
4            (F) an affidavit, notarized by the president or
5        chief executive officer of the third party, that each
6        of its employees has completed a criminal background
7        check as required by Section 10-21.9 of this Code
8        within 3 months prior to submission of the bid,
9        provided that the results of such background checks
10        need not be provided with the submission of the bid,
11        but must be made available upon request of the school
12        board;
13        (4) a contract must not be entered into unless the
14    school board provides a cost comparison, using generally
15    accepted accounting principles, of each and every
16    expenditure category and account that the school board
17    projects it would incur over the term of the contract if it
18    continued to perform the non-instructional services using
19    its own employees with each and every expenditure category
20    and account that is projected a third party would incur if
21    a third party performed the non-instructional services;
22        (5) review and consideration of all bids by third
23    parties to perform the non-instructional services shall
24    take place in open session of a regularly scheduled school
25    board meeting, unless the exclusive bargaining
26    representative of the employees who perform the

 

 

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1    non-instructional services, if any such exclusive
2    bargaining representative exists, agrees in writing that
3    such review and consideration can take place in open
4    session at a specially scheduled school board meeting;
5        (6) a minimum of one public hearing, conducted by the
6    school board prior to a regularly scheduled school board
7    meeting, to discuss the school board's proposal to contract
8    with a third party to perform the non-instructional
9    services must be held before the school board may enter
10    into such a contract; the school board must provide notice
11    to the public of the date, time, and location of the first
12    public hearing on or before the initial date that bids to
13    provide the non-instructional services are solicited or a
14    minimum of 30 days prior to entering into such a contract,
15    whichever provides a greater period of notice;
16        (7) a contract shall contain provisions requiring the
17    contractor to offer available employee positions pursuant
18    to the contract to qualified school district employees
19    whose employment is terminated because of the contract; and
20        (8) a contract shall contain provisions requiring the
21    contractor to comply with a policy of nondiscrimination and
22    equal employment opportunity for all persons and to take
23    affirmative steps to provide equal opportunity for all
24    persons.
25    (b) Notwithstanding subsection (a) of this Section, a board
26of education may enter into a contract, of no longer than 3

 

 

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1months in duration, with a third party for non-instructional
2services currently performed by an employee or bargaining unit
3member for the purpose of augmenting the current workforce in
4an emergency situation that threatens the safety or health of
5the school district's students or staff, provided that the
6school board meets all of its obligations under the Illinois
7Educational Labor Relations Act.
8    (c) The changes to this Section made by this amendatory Act
9of the 95th General Assembly are not applicable to
10non-instructional services of a school district that on the
11effective date of this amendatory Act of the 95th General
12Assembly are performed for the school district by a third
13party.
14    (d) Beginning July 1, 2022, the State Board of Education
15shall review and analyze the cost projection information
16provided by boards of education under subparagraph (D) of
17paragraph (3) of subsection (a) of this Section and determine
18the effects that the contracts had on school districts and the
19State, including any cost savings and economic benefits. The
20State Board of Education shall complete the review and report
21its findings to the Governor and the General Assembly by
22December 31, 2022.
23    From July 1, 2022 until January 1, 2023, no board of
24education may enter into any new contract with a third party
25for non-instructional services under this Section. However,
26this prohibition shall not affect any contracts entered into

 

 

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1before July 1, 2022 or renewals of contracts entered into
2before July 1, 2022.
3    Beginning January 1, 2023, boards of education are again
4allowed to enter into contracts with third parties for
5non-instructional services as provided under this Section.
6(Source: P.A. 95-241, eff. 8-17-07; 96-328, eff. 8-11-09.)
 
7    (105 ILCS 5/10-29)
8    Sec. 10-29. Remote educational programs.
9    (a) For purposes of this Section, "remote educational
10program" means an educational program delivered to students in
11the home or other location outside of a school building that
12meets all of the following criteria:
13        (1) A student may participate in the program only after
14    the school district, pursuant to adopted school board
15    policy, and a person authorized to enroll the student under
16    Section 10-20.12b of this Code determine that a remote
17    educational program will best serve the student's
18    individual learning needs. The adopted school board policy
19    shall include, but not be limited to, all of the following:
20            (A) Criteria for determining that a remote
21        educational program will best serve a student's
22        individual learning needs. The criteria must include
23        consideration of, at a minimum, a student's prior
24        attendance, disciplinary record, and academic history.
25            (B) Any limitations on the number of students or

 

 

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1        grade levels that may participate in a remote
2        educational program.
3            (C) A description of the process that the school
4        district will use to approve participation in the
5        remote educational program. The process must include
6        without limitation a requirement that, for any student
7        who qualifies to receive services pursuant to the
8        federal Individuals with Disabilities Education
9        Improvement Act of 2004, the student's participation
10        in a remote educational program receive prior approval
11        from the student's individualized education program
12        team.
13            (D) A description of the process the school
14        district will use to develop and approve a written
15        remote educational plan that meets the requirements of
16        subdivision (5) of this subsection (a).
17            (E) A description of the system the school district
18        will establish to calculate the number of clock hours a
19        student is participating in instruction in accordance
20        with the remote educational program.
21            (F) A description of the process for renewing a
22        remote educational program at the expiration of its
23        term.
24            (G) Such other terms and provisions as the school
25        district deems necessary to provide for the
26        establishment and delivery of a remote educational

 

 

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1        program.
2        (2) The school district has determined that the remote
3    educational program's curriculum is aligned to State
4    learning standards and that the program offers instruction
5    and educational experiences consistent with those given to
6    students at the same grade level in the district.
7        (3) The remote educational program is delivered by
8    instructors that meet the following qualifications:
9            (A) they are certificated under Article 21 of this
10        Code;
11            (B) they meet applicable highly qualified criteria
12        under the federal No Child Left Behind Act of 2001; and
13            (C) they have responsibility for all of the
14        following elements of the program: planning
15        instruction, diagnosing learning needs, prescribing
16        content delivery through class activities, assessing
17        learning, reporting outcomes to administrators and
18        parents and guardians, and evaluating the effects of
19        instruction.
20        (4) During the period of time from and including the
21    opening date to the closing date of the regular school term
22    of the school district established pursuant to Section
23    10-19 of this Code, participation in a remote educational
24    program may be claimed for general State aid purposes under
25    Section 18-8.05 of this Code or evidence-based funding
26    purposes under Section 18-8.15 of this Code on any calendar

 

 

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1    day, notwithstanding whether the day is a day of pupil
2    attendance or institute day on the school district's
3    calendar or any other provision of law restricting
4    instruction on that day. If the district holds year-round
5    classes in some buildings, the district shall classify each
6    student's participation in a remote educational program as
7    either on a year-round or a non-year-round schedule for
8    purposes of claiming general State aid or evidence-based
9    funding. Outside of the regular school term of the
10    district, the remote educational program may be offered as
11    part of any summer school program authorized by this Code.
12        (5) Each student participating in a remote educational
13    program must have a written remote educational plan that
14    has been approved by the school district and a person
15    authorized to enroll the student under Section 10-20.12b of
16    this Code. The school district and a person authorized to
17    enroll the student under Section 10-20.12b of this Code
18    must approve any amendment to a remote educational plan.
19    The remote educational plan must include, but is not
20    limited to, all of the following:
21            (A) Specific achievement goals for the student
22        aligned to State learning standards.
23            (B) A description of all assessments that will be
24        used to measure student progress, which description
25        shall indicate the assessments that will be
26        administered at an attendance center within the school

 

 

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1        district.
2            (C) A description of the progress reports that will
3        be provided to the school district and the person or
4        persons authorized to enroll the student under Section
5        10-20.12b of this Code.
6            (D) Expectations, processes, and schedules for
7        interaction between a teacher and student.
8            (E) A description of the specific responsibilities
9        of the student's family and the school district with
10        respect to equipment, materials, phone and Internet
11        service, and any other requirements applicable to the
12        home or other location outside of a school building
13        necessary for the delivery of the remote educational
14        program.
15            (F) If applicable, a description of how the remote
16        educational program will be delivered in a manner
17        consistent with the student's individualized education
18        program required by Section 614(d) of the federal
19        Individuals with Disabilities Education Improvement
20        Act of 2004 or plan to ensure compliance with Section
21        504 of the federal Rehabilitation Act of 1973.
22            (G) A description of the procedures and
23        opportunities for participation in academic and
24        extra-curricular activities and programs within the
25        school district.
26            (H) The identification of a parent, guardian, or

 

 

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1        other responsible adult who will provide direct
2        supervision of the program. The plan must include an
3        acknowledgment by the parent, guardian, or other
4        responsible adult that he or she may engage only in
5        non-teaching duties not requiring instructional
6        judgment or the evaluation of a student. The plan shall
7        designate the parent, guardian, or other responsible
8        adult as non-teaching personnel or volunteer personnel
9        under subsection (a) of Section 10-22.34 of this Code.
10            (I) The identification of a school district
11        administrator who will oversee the remote educational
12        program on behalf of the school district and who may be
13        contacted by the student's parents with respect to any
14        issues or concerns with the program.
15            (J) The term of the student's participation in the
16        remote educational program, which may not extend for
17        longer than 12 months, unless the term is renewed by
18        the district in accordance with subdivision (7) of this
19        subsection (a).
20            (K) A description of the specific location or
21        locations in which the program will be delivered. If
22        the remote educational program is to be delivered to a
23        student in any location other than the student's home,
24        the plan must include a written determination by the
25        school district that the location will provide a
26        learning environment appropriate for the delivery of

 

 

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1        the program. The location or locations in which the
2        program will be delivered shall be deemed a long
3        distance teaching reception area under subsection (a)
4        of Section 10-22.34 of this Code.
5            (L) Certification by the school district that the
6        plan meets all other requirements of this Section.
7        (6) Students participating in a remote educational
8    program must be enrolled in a school district attendance
9    center pursuant to the school district's enrollment policy
10    or policies. A student participating in a remote
11    educational program must be tested as part of all
12    assessments administered by the school district pursuant
13    to Section 2-3.64a-5 of this Code at the attendance center
14    in which the student is enrolled and in accordance with the
15    attendance center's assessment policies and schedule. The
16    student must be included within all accountability
17    determinations for the school district and attendance
18    center under State and federal law.
19        (7) The term of a student's participation in a remote
20    educational program may not extend for longer than 12
21    months, unless the term is renewed by the school district.
22    The district may only renew a student's participation in a
23    remote educational program following an evaluation of the
24    student's progress in the program, a determination that the
25    student's continuation in the program will best serve the
26    student's individual learning needs, and an amendment to

 

 

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1    the student's written remote educational plan addressing
2    any changes for the upcoming term of the program.
3    For purposes of this Section, a remote educational program
4does not include instruction delivered to students through an
5e-learning program approved under Section 10-20.56 of this
6Code.
7    (b) A school district may, by resolution of its school
8board, establish a remote educational program.
9    (c) Clock hours of instruction by students in a remote
10educational program meeting the requirements of this Section
11may be claimed by the school district and shall be counted as
12school work for general State aid purposes in accordance with
13and subject to the limitations of Section 18-8.05 of this Code
14or evidence-based funding purposes in accordance with and
15subject to the limitations of Section 18-8.15 of this Code.
16    (d) The impact of remote educational programs on wages,