SB0001 EnrolledLRB100 06371 NHT 16410 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

SB0001 Enrolled- 112 -LRB100 06371 NHT 16410 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

 

 

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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

 

 

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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

 

 

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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

 

 

SB0001 Enrolled- 118 -LRB100 06371 NHT 16410 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, 1C-2, 1D-1, 1E-20, 1F-20,

 

 

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11F-62, 1H-20, 1H-70, 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, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50,
413B-50.10, 13B-50.15, 14-7.02b, 14-13.01, 14C-1, 14C-12, 17-1,
517-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10,
618-9, 18-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5, 34-2.3, 34-18,
734-18.30, and 34-43.1 and by adding Sections 2-3.170, 17-3.6,
8and 18-8.15 as follows:
 
9    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
10    Sec. 1A-8. Powers of the Board in Assisting Districts
11Deemed in Financial Difficulties. To promote the financial
12integrity of school districts, the State Board of Education
13shall be provided the necessary powers to promote sound
14financial management and continue operation of the public
15schools.
16    (a) The State Superintendent of Education may require a
17school district, including any district subject to Article 34A
18of this Code, to share financial information relevant to a
19proper investigation of the district's financial condition and
20the delivery of appropriate State financial, technical, and
21consulting services to the district if the district (i) has
22been designated, through the State Board of Education's School
23District Financial Profile System, as on financial warning or
24financial watch status, (ii) has failed to file an annual
25financial report, annual budget, deficit reduction plan, or

 

 

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

 

 

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

 

 

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1the State Board of Education certifies that a district in a
2city with 500,000 inhabitants or more is in financial
3difficulty, the State Board shall so notify the Governor and
4the Mayor of the city in which the district is located. The
5State Board of Education may require school districts certified
6in financial difficulty, except those districts subject to
7Article 34A, to develop, adopt and submit a financial plan
8within 45 days after certification of financial difficulty. The
9financial plan shall be developed according to guidelines
10presented to the district by the State Board of Education
11within 14 days of certification. Such guidelines shall address
12the specific nature of each district's financial difficulties.
13Any proposed budget of the district shall be consistent with
14the financial plan submitted to and approved by the State Board
15of Education.
16    A district certified to be in financial difficulty, other
17than a district subject to Article 34A, shall report to the
18State Board of Education at such times and in such manner as
19the State Board may direct, concerning the district's
20compliance with each financial plan. The State Board may review
21the district's operations, obtain budgetary data and financial
22statements, require the district to produce reports, and have
23access to any other information in the possession of the
24district that it deems relevant. The State Board may issue
25recommendations or directives within its powers to the district
26to assist in compliance with the financial plan. The district

 

 

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

 

 

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1provided in this School Code.
2(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
397-429, eff. 8-16-11.)
 
4    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
5    Sec. 1B-5. When a petition for emergency financial
6assistance for a school district is allowed by the State Board
7under Section 1B-4, the State Superintendent shall within 10
8days thereafter appoint 3 members to serve at the State
9Superintendent's pleasure on a Financial Oversight Panel for
10the district. The State Superintendent shall designate one of
11the members of the Panel to serve as its Chairman. In the event
12of vacancy or resignation the State Superintendent shall
13appoint a successor within 10 days of receiving notice thereof.
14    Members of the Panel shall be selected primarily on the
15basis of their experience and education in financial
16management, with consideration given to persons knowledgeable
17in education finance. A member of the Panel may not be a board
18member or employee of the district for which the Panel is
19constituted, nor may a member have a direct financial interest
20in that district.
21    Panel members shall serve without compensation, but may be
22reimbursed for travel and other necessary expenses incurred in
23the performance of their official duties by the State Board.
24The amount reimbursed Panel members for their expenses shall be
25charged to the school district as part of any emergency

 

 

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

 

 

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

 

 

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

 

 

SB0001 Enrolled- 135 -LRB100 06371 NHT 16410 b

1anticipation warrants or other evidences of indebtedness shall
2be issued or sold by the school district or be legally binding
3upon or enforceable against the local board of education unless
4and until the approval of the Panel has been received;
5    (f) to approve all property tax levies of the school
6district and require adjustments thereto as the Panel deems
7necessary or advisable;
8    (g) to require and approve a school district financial
9plan;
10    (h) to approve and require revisions of the school district
11budget;
12    (i) to approve all contracts and other obligations as the
13Panel deems necessary and appropriate;
14    (j) to authorize emergency State financial assistance,
15including requirements regarding the terms and conditions of
16repayment of such assistance, and to require the board of
17education to levy a separate local property tax, subject to the
18limitations of Section 1B-8, sufficient to repay such
19assistance consistent with the terms and conditions of
20repayment and the district's approved financial plan and
21budget;
22    (k) to request the regional superintendent to make
23appointments to fill all vacancies on the local school board as
24provided in Section 10-10;
25    (l) to recommend dissolution or reorganization of the
26school district to the General Assembly if in the Panel's

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1herein they shall not be made available to the local board for
2further use as emergency financial assistance under this
3Article at any time thereafter. All repayments required to be
4made by a school district shall be received by the State Board
5and deposited in the School District Emergency Financial
6Assistance Fund.
7    In establishing the terms and conditions for the repayment
8obligation of the school district the Panel shall annually
9determine whether a separate local property tax levy is
10required. The board of any school district with a tax rate for
11educational purposes for the prior year of less than 120% of
12the maximum rate for educational purposes authorized by Section
1317-2 shall provide for a separate tax levy for emergency
14financial assistance repayment purposes. Such tax levy shall
15not be subject to referendum approval. The amount of the levy
16shall be equal to the amount necessary to meet the annual
17repayment obligations of the district as established by the
18Panel, or 20% of the amount levied for educational purposes for
19the prior year, whichever is less. However, no district shall
20be required to levy the tax if the district's operating tax
21rate as determined under Section 18-8, or 18-8.05, or 18-8.15
22exceeds 200% of the district's tax rate for educational
23purposes for the prior year.
24(Source: P.A. 97-429, eff. 8-16-11.)
 
25    (105 ILCS 5/1C-1)

 

 

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1    Sec. 1C-1. Purpose. The purpose of this Article is to
2permit greater flexibility and efficiency in the distribution
3and use of certain State funds available to local education
4agencies for the improvement of the quality of educational
5services pursuant to locally established priorities.
6    Through fiscal year 2017, this This Article does not apply
7to school districts having a population in excess of 500,000
8inhabitants.
9(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1089-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
11    (105 ILCS 5/1C-2)
12    Sec. 1C-2. Block grants.
13    (a) For fiscal year 1999, and each fiscal year thereafter,
14the State Board of Education shall award to school districts
15block grants as described in subsection (c). The State Board of
16Education may adopt rules and regulations necessary to
17implement this Section. In accordance with Section 2-3.32, all
18state block grants are subject to an audit. Therefore, block
19grant receipts and block grant expenditures shall be recorded
20to the appropriate fund code.
21    (b) (Blank).
22    (c) An Early Childhood Education Block Grant shall be
23created by combining the following programs: Preschool
24Education, Parental Training and Prevention Initiative. These
25funds shall be distributed to school districts and other

 

 

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

 

 

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1    (105 ILCS 5/1D-1)
2    Sec. 1D-1. Block grant funding.
3    (a) For fiscal year 1996 through fiscal year 2017 and each
4fiscal year thereafter, the State Board of Education shall
5award to a school district having a population exceeding
6500,000 inhabitants a general education block grant and an
7educational services block grant, determined as provided in
8this Section, in lieu of distributing to the district separate
9State funding for the programs described in subsections (b) and
10(c). The provisions of this Section, however, do not apply to
11any federal funds that the district is entitled to receive. In
12accordance with Section 2-3.32, all block grants are subject to
13an audit. Therefore, block grant receipts and block grant
14expenditures shall be recorded to the appropriate fund code for
15the designated block grant.
16    (b) The general education block grant shall include the
17following programs: REI Initiative, Summer Bridges, Preschool
18At Risk, K-6 Comprehensive Arts, School Improvement Support,
19Urban Education, Scientific Literacy, Substance Abuse
20Prevention, Second Language Planning, Staff Development,
21Outcomes and Assessment, K-6 Reading Improvement, 7-12
22Continued Reading Improvement, Truants' Optional Education,
23Hispanic Programs, Agriculture Education, Parental Education,
24Prevention Initiative, Report Cards, and Criminal Background
25Investigations. Notwithstanding any other provision of law,
26all amounts paid under the general education block grant from

 

 

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1State appropriations to a school district in a city having a
2population exceeding 500,000 inhabitants shall be appropriated
3and expended by the board of that district for any of the
4programs included in the block grant or any of the board's
5lawful purposes.
6    (c) The educational services block grant shall include the
7following programs: Regular and Vocational Transportation,
8State Lunch and Free Breakfast Program, Special Education
9(Personnel, Transportation, Orphanage, Private Tuition),
10funding for children requiring special education services,
11Summer School, Educational Service Centers, and
12Administrator's Academy. This subsection (c) does not relieve
13the district of its obligation to provide the services required
14under a program that is included within the educational
15services block grant. It is the intention of the General
16Assembly in enacting the provisions of this subsection (c) to
17relieve the district of the administrative burdens that impede
18efficiency and accompany single-program funding. The General
19Assembly encourages the board to pursue mandate waivers
20pursuant to Section 2-3.25g.
21    The funding program included in the educational services
22block grant for funding for children requiring special
23education services in each fiscal year shall be treated in that
24fiscal year as a payment to the school district in respect of
25services provided or costs incurred in the prior fiscal year,
26calculated in each case as provided in this Section. Nothing in

 

 

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1this Section shall change the nature of payments for any
2program that, apart from this Section, would be or, prior to
3adoption or amendment of this Section, was on the basis of a
4payment in a fiscal year in respect of services provided or
5costs incurred in the prior fiscal year, calculated in each
6case as provided in this Section.
7    (d) For fiscal year 1996 through fiscal year 2017 and each
8fiscal year thereafter, the amount of the district's block
9grants shall be determined as follows: (i) with respect to each
10program that is included within each block grant, the district
11shall receive an amount equal to the same percentage of the
12current fiscal year appropriation made for that program as the
13percentage of the appropriation received by the district from
14the 1995 fiscal year appropriation made for that program, and
15(ii) the total amount that is due the district under the block
16grant shall be the aggregate of the amounts that the district
17is entitled to receive for the fiscal year with respect to each
18program that is included within the block grant that the State
19Board of Education shall award the district under this Section
20for that fiscal year. In the case of the Summer Bridges
21program, the amount of the district's block grant shall be
22equal to 44% of the amount of the current fiscal year
23appropriation made for that program.
24    (e) The district is not required to file any application or
25other claim in order to receive the block grants to which it is
26entitled under this Section. The State Board of Education shall

 

 

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

 

 

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

 

 

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1therewith. This resolution is controlling as to the
2classification of funds referenced therein. A certified copy of
3the resolution must be sent to the State Superintendent of
4Education. The resolution shall still take effect even though a
5copy of the resolution has not been sent to the State
6Superintendent of Education in a timely manner. No
7classification under this subsection (h) by a district shall
8affect the total amount or timing of money the district is
9entitled to receive under this Code. No classification under
10this subsection (h) by a district shall in any way relieve the
11district from or affect any requirements that otherwise would
12apply with respect to the block grant as provided in this
13Section, including any accounting of funds by source, reporting
14expenditures by original source and purpose, reporting
15requirements, or requirements of provision of services.
16(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1797-813, eff. 7-13-12.)
 
18    (105 ILCS 5/1E-20)
19    (This Section scheduled to be repealed in accordance with
20105 ILCS 5/1E-165)
21    Sec. 1E-20. Members of Authority; meetings.
22    (a) When a petition for a School Finance Authority is
23allowed by the State Board under Section 1E-15 of this Code,
24the State Superintendent shall within 10 days thereafter
25appoint 5 members to serve on a School Finance Authority for

 

 

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1the district. Of the initial members, 2 shall be appointed to
2serve a term of 2 years and 3 shall be appointed to serve a term
3of 3 years. Thereafter, each member shall serve for a term of 3
4years and until his or her successor has been appointed. The
5State Superintendent shall designate one of the members of the
6Authority to serve as its Chairperson. In the event of vacancy
7or resignation, the State Superintendent shall, within 10 days
8after receiving notice, appoint a successor to serve out that
9member's term. The State Superintendent may remove a member for
10incompetence, malfeasance, neglect of duty, or other just
11cause.
12    Members of the Authority shall be selected primarily on the
13basis of their experience and education in financial
14management, with consideration given to persons knowledgeable
15in education finance. Two members of the Authority shall be
16residents of the school district that the Authority serves. A
17member of the Authority may not be a member of the district's
18school board or an employee of the district nor may a member
19have a direct financial interest in the district.
20    Authority members shall serve without compensation, but
21may be reimbursed by the State Board for travel and other
22necessary expenses incurred in the performance of their
23official duties. Unless paid from bonds issued under Section
241E-65 of this Code, the amount reimbursed members for their
25expenses shall be charged to the school district as part of any
26emergency financial assistance and incorporated as a part of

 

 

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

 

 

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1shall be appointed to serve a term of 3 years. Thereafter, each
2member shall serve for a term of 3 years and until his or her
3successor has been appointed. The State Superintendent shall
4designate one of the members of the Authority to serve as its
5Chairperson. In the event of vacancy or resignation, the State
6Superintendent shall, within 10 days after receiving notice,
7appoint a successor to serve out that member's term. The State
8Superintendent may remove a member for incompetence,
9malfeasance, neglect of duty, or other just cause.
10    Members of the Authority 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 Authority shall be
14residents of the school district that the Authority serves. A
15member of the Authority 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    Authority members shall be paid a stipend approved by the
19State Superintendent of not more than $100 per meeting and may
20be reimbursed by the State Board for travel and other necessary
21expenses incurred in the performance of their official duties.
22Unless paid from bonds issued under Section 1F-65 of this Code,
23the amount reimbursed members for their expenses shall be
24charged to the school district as part of any emergency
25financial assistance and incorporated as a part of the terms
26and conditions for repayment of the assistance or shall be

 

 

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

 

 

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1Authority for emergency financial assistance loans to a School
2Finance Authority that petitions for emergency financial
3assistance. An emergency financial assistance loan to a School
4Finance Authority or borrowing from sources other than the
5State shall not be considered as part of the calculation of a
6district's debt for purposes of the limitation specified in
7Section 19-1 of this Code. From the amount allocated to each
8School Finance Authority, the State Board shall identify a sum
9sufficient to cover all approved costs of the School Finance
10Authority. If the State Board and State Superintendent have not
11approved emergency financial assistance in conjunction with
12the appointment of a School Finance Authority, the Authority's
13approved costs shall be paid from deductions from the
14district's general State aid or evidence-based funding.
15    The School Finance Authority may prepare and file with the
16State Superintendent a proposal for emergency financial
17assistance for the school district and for its operations
18budget. No expenditures shall be authorized by the State
19Superintendent until he or she has approved the proposal of the
20School Finance Authority, either as submitted or in such lesser
21amount determined by the State Superintendent.
22    (b) The amount of an emergency financial assistance loan
23that may be allocated to a School Finance Authority under this
24Article, including moneys necessary for the operations of the
25School Finance Authority, and borrowing from sources other than
26the State shall not exceed, in the aggregate, $4,000 times the

 

 

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

 

 

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

 

 

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1Authority shall annually determine whether a separate local
2property tax levy is required to meet that obligation. The
3School Finance Authority shall provide for a separate tax levy
4for emergency financial assistance repayment purposes. This
5tax levy shall not be subject to referendum approval. The
6amount of the levy shall not exceed the amount necessary to
7meet the annual emergency financial repayment obligations of
8the district, including principal and interest, as established
9by the School Finance Authority.
10(Source: P.A. 94-234, eff. 7-1-06.)
 
11    (105 ILCS 5/1H-20)
12    Sec. 1H-20. Members of Panel; meetings.
13    (a) Upon establishment of a Financial Oversight Panel under
14Section 1H-15 of this Code, the State Superintendent shall
15within 15 working days thereafter appoint 5 members to serve on
16a Financial Oversight Panel for the district. Members appointed
17to the Panel shall serve at the pleasure of the State
18Superintendent. The State Superintendent shall designate one
19of the members of the Panel to serve as its Chairperson. In the
20event of vacancy or resignation, the State Superintendent
21shall, within 10 days after receiving notice, appoint a
22successor to serve out that member's term.
23    (b) Members of the Panel 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 Panel shall be
2residents of the school district that the Panel serves. A
3member of the Panel 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    (c) Panel members may be reimbursed by the State Board for
7travel and other necessary expenses incurred in the performance
8of their official duties. The amount reimbursed members for
9their expenses shall be charged to the school district as part
10of any emergency financial assistance and incorporated as a
11part of the terms and conditions for repayment of the
12assistance or shall be deducted from the district's general
13State aid or evidence-based funding as provided in Section
141H-65 of this Code.
15    (d) With the exception of the chairperson, who shall be
16designated as provided in subsection (a) of this Section, the
17Panel may elect such officers as it deems appropriate.
18    (e) The first meeting of the Panel shall be held at the
19call of the Chairperson. The Panel shall prescribe the times
20and places for its meetings and the manner in which regular and
21special meetings may be called and shall comply with the Open
22Meetings Act. The Panel shall also comply with the Freedom of
23Information Act.
24    (f) Three members of the Panel shall constitute a quorum. A
25majority of members present is required to pass a measure.
26(Source: P.A. 97-429, eff. 8-16-11.)
 

 

 

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

 

 

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

 

 

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1evidence-based funding for those districts where an adjustment
2is required.
3    Except in the case of an adverse court or administrative
4agency decision, no recomputation of a State aid claim shall be
5made pursuant to this Section as a result of a reduction in the
6assessed valuation of a school district from the assessed
7valuation of the district reported to the State Board of
8Education by the Department of Revenue under Section 18-8.05 or
918-8.15 of this Code unless the requirements of Section 16-15
10of the Property Tax Code and Section 2-3.84 of this Code are
11complied with in all respects.
12    This paragraph applies to all requests for recomputation of
13a general State aid or evidence-based funding claim received
14after June 30, 2003. In recomputing a general State aid or
15evidence-based funding claim that was originally calculated
16using an extension limitation equalized assessed valuation
17under paragraph (3) of subsection (G) of Section 18-8.05 of
18this Code or Section 18-8.15 of this Code, a qualifying
19reduction in equalized assessed valuation shall be deducted
20from the extension limitation equalized assessed valuation
21that was used in calculating the original claim.
22    From the total amount of general State aid or
23evidence-based funding to be provided to districts,
24adjustments as a result of recomputation under this Section
25together with adjustments under Section 2-3.84 must not exceed
26$25 million, in the aggregate for all districts under both

 

 

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

 

 

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1funds are expended for purely secular purposes. A school
2district or laboratory school as defined in Section 18-8, or
318-8.05, or 18-8.15 is not required to file an application in
4order to receive the categorical funding to which it is
5entitled under this Section. Funds for the School Safety and
6Educational Improvement Block Grant Program shall be
7distributed to school districts and laboratory schools based on
8the prior year's best 3 months average daily attendance. Funds
9for the School Safety and Educational Improvement Block Grant
10Program shall be distributed to State-recognized, non-public
11schools based on the average daily attendance figure for the
12previous school year provided to the State Board of Education.
13The State Board of Education shall develop an application that
14requires State-recognized, non-public schools to submit
15average daily attendance figures. A State-recognized,
16non-public school must submit the application and average daily
17attendance figure prior to receiving funds under this Section.
18The State Board of Education shall promulgate rules and
19regulations necessary for the implementation of this program.
20    (2) Distribution of moneys to school districts and
21State-recognized, non-public schools shall be made in 2
22semi-annual installments, one payment on or before October 30,
23and one payment prior to April 30, of each fiscal year.
24    (3) Grants under the School Safety and Educational
25Improvement Block Grant Program shall be awarded provided there
26is an appropriation for the program, and funding levels for

 

 

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

 

 

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1Truants' Alternative and Optional Education programs funded
2pursuant to this Section shall be planned by a student, the
3student's parents or legal guardians, unless the student is 18
4years or older, and school officials and shall culminate in an
5individualized optional education plan. Such plan shall focus
6on academic or vocational skills, or both, and may include, but
7not be limited to, evening school, summer school, community
8college courses, adult education, preparation courses for high
9school equivalency testing, vocational training, work
10experience, programs to enhance self concept and parenting
11courses. School districts which are awarded grants pursuant to
12this Section shall be authorized to provide day care services
13to children of students who are eligible and desire to enroll
14in programs established and funded under this Section, but only
15if and to the extent that such day care is necessary to enable
16those eligible students to attend and participate in the
17programs and courses which are conducted pursuant to this
18Section. School districts and regional offices of education may
19claim general State aid under Section 18-8.05 or evidence-based
20funding under Section 18-8.15 for students enrolled in truants'
21alternative and optional education programs, provided that
22such students are receiving services that are supplemental to a
23program leading to a high school diploma and are otherwise
24eligible to be claimed for general State aid under Section
2518-8.05 or evidence-based funding under Section 18-8.15, as
26applicable.

 

 

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1(Source: P.A. 98-718, eff. 1-1-15.)
 
2    (105 ILCS 5/2-3.66b)
3    Sec. 2-3.66b. IHOPE Program.
4    (a) There is established the Illinois Hope and Opportunity
5Pathways through Education (IHOPE) Program. The State Board of
6Education shall implement and administer the IHOPE Program. The
7goal of the IHOPE Program is to develop a comprehensive system
8in this State to re-enroll significant numbers of high school
9dropouts in programs that will enable them to earn their high
10school diploma.
11    (b) The IHOPE Program shall award grants, subject to
12appropriation for this purpose, to educational service regions
13and a school district organized under Article 34 of this Code
14from appropriated funds to assist in establishing
15instructional programs and other services designed to
16re-enroll high school dropouts. From any funds appropriated for
17the IHOPE Program, the State Board of Education may use up to
185% for administrative costs, including the performance of a
19program evaluation and the hiring of staff to implement and
20administer the program.
21    The IHOPE Program shall provide incentive grant funds for
22regional offices of education and a school district organized
23under Article 34 of this Code to develop partnerships with
24school districts, public community colleges, and community
25groups to build comprehensive plans to re-enroll high school

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    work experience, and education, including during the
2    school year and after school, and summer school programs
3    that link internships, work, and learning.
4        (6) Comprehensive programs providing extensive support
5    services.
6        (7) Small teams of students supported by full-time paid
7    mentors who work to retain and help those students
8    graduate.
9        (8) A comprehensive technology learning center with
10    Internet access and broad-based curriculum focusing on
11    academic and career subject areas.
12        (9) Learning opportunities that incorporate action
13    into study.
14    (h) Programs funded through the IHOPE Program must report
15data to the State Board of Education as requested. This
16information shall include, but is not limited to, student
17enrollment figures, attendance information, course completion
18data, graduation information, and post-graduation information,
19as available.
20    (i) Rules must be developed by the State Board of Education
21to set forth the fund distribution process to regional offices
22of education and a school district organized under Article 34
23of this Code, the planning and the conditions upon which an
24IHOPE Plan would be approved by State Board, and other rules to
25develop the IHOPE Program.
26(Source: P.A. 96-106, eff. 7-30-09.)
 

 

 

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1    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
2    Sec. 2-3.84. In calculating the amount of State aid to be
3apportioned to the various school districts in this State, the
4State Board of Education shall incorporate and deduct the total
5aggregate adjustments to assessments made by the State Property
6Tax Appeal Board or Cook County Board of Appeals, as reported
7pursuant to Section 16-15 of the Property Tax Code or Section
8129.1 of the Revenue Act of 1939 by the Department of Revenue,
9from the equalized assessed valuation that is otherwise to be
10utilized in the initial calculation.
11    From the total amount of general State aid or
12evidence-based funding to be provided to districts,
13adjustments under this Section together with adjustments as a
14result of recomputation under Section 2-3.33 must not exceed
15$25 million, in the aggregate for all districts under both
16Sections combined, of the general State aid or evidence-based
17funding appropriation in any fiscal year; if necessary, amounts
18shall be prorated among districts. If it is necessary to
19prorate claims under this paragraph, then that portion of each
20prorated claim that is approved but not paid in the current
21fiscal year may be resubmitted as a valid claim in the
22following fiscal year.
23(Source: P.A. 93-845, eff. 7-30-04.)
 
24    (105 ILCS 5/2-3.109a)

 

 

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1    Sec. 2-3.109a. Laboratory schools grant eligibility. A
2laboratory school as defined in Section 18-8 or 18-8.15 may
3apply for and be eligible to receive, subject to the same
4restrictions applicable to school districts, any grant
5administered by the State Board of Education that is available
6for school districts.
7(Source: P.A. 90-566, eff. 1-2-98.)
 
8    (105 ILCS 5/2-3.170 new)
9    Sec. 2-3.170. Property tax relief pool grants.
10    (a) As used in this Section,
11    "Property tax multiplier" equals one minus the square of
12the school district's Local Capacity Percentage, as defined in
13Section 18-8.15 of this Code.
14    "State Board" means the State Board of Education.
15    "Unit equivalent tax rate" means the Adjusted Operating Tax
16Rate, as defined in Section 18-8.15 of this Code, multiplied by
17a factor of 1 for unit school district, 13/9 for elementary
18school districts, and 13/4 for high school districts.
19    (b) Subject to appropriation, the State Board shall provide
20grants to eligible school districts that provide tax relief to
21the school district's residents, up to a limit of 1% of the
22school district's equalized assessed value, as provided in this
23Section.
24    (c) By August 1 of each year, the State Board shall publish
25an estimated unit equivalent tax rate above which school

 

 

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1districts are eligible for relief under this Section. This
2estimated tax rate shall be based on the most recent available
3data provided by school districts pursuant to Section 18-8.15
4of this Code. The State Board shall estimate this property tax
5rate based on the amount appropriated to the grant program and
6the assumption that a set of school districts, based on
7criteria established by the State Board, will apply for grants
8under this Section. The criteria shall be based on reasonable
9assumptions about when school districts will apply for the
10grant.
11    (d) School districts seeking grants under this Section
12shall apply to the State Board by October 1 of each year. All
13applications to the State Board for grants shall include the
14amount of the grant requested.
15    (e) By December 1 of each year, based on the most recent
16available data provided by school districts pursuant to Section
1718-8.15 of this Code, the State Board shall calculate the unit
18equivalent tax rate, based on the applications received by the
19State Board, above which the appropriations are sufficient to
20provide relief and publish a list of the school districts
21eligible for relief.
22    (f) The State Board shall publish a final list of grant
23recipients and provide payment of the grants by January 15 of
24each year.
25    (g) If payment from the State Board is received by the
26school district on time, the school district shall reduce its

 

 

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1property tax levy in an amount equal to the grant received
2under this Section.
3    (h) The total grant to a school district under this Section
4shall be calculated based on the total amount of reduction in
5the school district's aggregate extension, up to a limit of 1%
6of a district's equalized assessed value for a unit school
7district, 0.69% for an elementary school district, and 0.31%
8for a high school district, multiplied by the property tax
9multiplier or the amount that the unit equivalent tax rate is
10greater than the rate determined by the State Board, whichever
11is less.
12    (i) If the State Board does not expend all appropriations
13allocated pursuant to this Section, then any remaining funds
14shall be allocated pursuant to Section 18-8.15 of this Code.
15    (j) The State Board shall prioritize payments under Section
1618-8.15 of this Code over payments under this Section, if
17necessary.
18    (k) Any grants received by a school district shall be
19included in future calculations of that school district's Base
20Funding Minimum under Section 18-8.15 of this Code.
21    (l) In the tax year following receipt of a Property Tax
22Pool Relief Grant, the aggregate levy of any school district
23receiving a grant under this Section, for purposes of the
24Property Tax Extension Limitation Law, shall include the tax
25relief the school district provided in the previous taxable
26year under this Section.
 

 

 

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1    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
2    Sec. 3-14.21. Inspection of schools.
3    (a) The regional superintendent shall inspect and survey
4all public schools under his or her supervision and notify the
5board of education, or the trustees of schools in a district
6with trustees, in writing before July 30, whether or not the
7several schools in their district have been kept as required by
8law, using forms provided by the State Board of Education which
9are based on the Health/Life Safety Code for Public Schools
10adopted under Section 2-3.12. The regional superintendent
11shall report his or her findings to the State Board of
12Education on forms provided by the State Board of Education.
13    (b) If the regional superintendent determines that a school
14board has failed in a timely manner to correct urgent items
15identified in a previous life-safety report completed under
16Section 2-3.12 or as otherwise previously ordered by the
17regional superintendent, the regional superintendent shall
18order the school board to adopt and submit to the regional
19superintendent a plan for the immediate correction of the
20building violations. This plan shall be adopted following a
21public hearing that is conducted by the school board on the
22violations and the plan and that is preceded by at least 7
23days' prior notice of the hearing published in a newspaper of
24general circulation within the school district. If the regional
25superintendent determines in the next annual inspection that

 

 

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1the plan has not been completed and that the violations have
2not been corrected, the regional superintendent shall submit a
3report to the State Board of Education with a recommendation
4that the State Board withhold from payments of general State
5aid or evidence-based funding due to the district an amount
6necessary to correct the outstanding violations. The State
7Board, upon notice to the school board and to the regional
8superintendent, shall consider the report at a meeting of the
9State Board, and may order that a sufficient amount of general
10State aid or evidence-based funding be withheld from payments
11due to the district to correct the violations. This amount
12shall be paid to the regional superintendent who shall contract
13on behalf of the school board for the correction of the
14outstanding violations.
15    (c) The Office of the State Fire Marshal or a qualified
16fire official, as defined in Section 2-3.12 of this Code, to
17whom the State Fire Marshal has delegated his or her authority
18shall conduct an annual fire safety inspection of each school
19building in this State. The State Fire Marshal or the fire
20official shall coordinate its inspections with the regional
21superintendent. The inspection shall be based on the fire
22safety code authorized in Section 2-3.12 of this Code. Any
23violations shall be reported in writing to the regional
24superintendent and shall reference the specific code sections
25where a discrepancy has been identified within 15 days after
26the inspection has been conducted. The regional superintendent

 

 

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1shall address those violations that are not corrected in a
2timely manner pursuant to subsection (b) of this Section. The
3inspection must be at no cost to the school district.
4    (d) If a municipality or, in the case of an unincorporated
5area, a county or, if applicable, a fire protection district
6wishes to perform new construction inspections under the
7jurisdiction of a regional superintendent, then the entity must
8register this wish with the regional superintendent. These
9inspections must be based on the building code authorized in
10Section 2-3.12 of this Code. The inspections must be at no cost
11to the school district.
12(Source: P.A. 96-734, eff. 8-25-09.)
 
13    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
14    Sec. 7-14A. Annexation compensation. There shall be no
15accounting made after a mere change in boundaries when no new
16district is created, except that those districts whose
17enrollment increases by 90% or more as a result of annexing
18territory detached from another district pursuant to this
19Article are eligible for supplementary State aid payments in
20accordance with Section 11E-135 of this Code. Eligible annexing
21districts shall apply to the State Board of Education for
22supplementary State aid payments by submitting enrollment
23figures for the year immediately preceding and the year
24immediately following the effective date of the boundary change
25for both the district gaining territory and the district losing

 

 

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1territory. Copies of any intergovernmental agreements between
2the district gaining territory and the district losing
3territory detailing any transfer of fund balances and staff
4must also be submitted. In all instances of changes in
5boundaries, the district losing territory shall not count the
6average daily attendance of pupils living in the territory
7during the year preceding the effective date of the boundary
8change in its claim for reimbursement under Section 18-8.05 or
918-8.15 of this Code for the school year following the
10effective date of the change in boundaries and the district
11receiving the territory shall count the average daily
12attendance of pupils living in the territory during the year
13preceding the effective date of the boundary change in its
14claim for reimbursement under Section 18-8.05 or 18-8.15 of
15this Code for the school year following the effective date of
16the change in boundaries. The changes to this Section made by
17this amendatory Act of the 95th General Assembly are intended
18to be retroactive and applicable to any annexation taking
19effect on or after July 1, 2004.
20(Source: P.A. 99-657, eff. 7-28-16.)
 
21    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
22    Sec. 10-17a. State, school district, and school report
23cards.
24    (1) By October 31, 2013 and October 31 of each subsequent
25school year, the State Board of Education, through the State

 

 

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1Superintendent of Education, shall prepare a State report card,
2school district report cards, and school report cards, and
3shall by the most economic means provide to each school
4district in this State, including special charter districts and
5districts subject to the provisions of Article 34, the report
6cards for the school district and each of its schools.
7    (2) In addition to any information required by federal law,
8the State Superintendent shall determine the indicators and
9presentation of the school report card, which must include, at
10a minimum, the most current data possessed by the State Board
11of Education related to the following:
12        (A) school characteristics and student demographics,
13    including average class size, average teaching experience,
14    student racial/ethnic breakdown, and the percentage of
15    students classified as low-income; the percentage of
16    students classified as English learners; the percentage of
17    students who have individualized education plans or 504
18    plans that provide for special education services; the
19    percentage of students who annually transferred in or out
20    of the school district; the per-pupil operating
21    expenditure of the school district; and the per-pupil State
22    average operating expenditure for the district type
23    (elementary, high school, or unit);
24        (B) curriculum information, including, where
25    applicable, Advanced Placement, International
26    Baccalaureate or equivalent courses, dual enrollment

 

 

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1    courses, foreign language classes, school personnel
2    resources (including Career Technical Education teachers),
3    before and after school programs, extracurricular
4    activities, subjects in which elective classes are
5    offered, health and wellness initiatives (including the
6    average number of days of Physical Education per week per
7    student), approved programs of study, awards received,
8    community partnerships, and special programs such as
9    programming for the gifted and talented, students with
10    disabilities, and work-study students;
11        (C) student outcomes, including, where applicable, the
12    percentage of students deemed proficient on assessments of
13    State standards, the percentage of students in the eighth
14    grade who pass Algebra, the percentage of students enrolled
15    in post-secondary institutions (including colleges,
16    universities, community colleges, trade/vocational
17    schools, and training programs leading to career
18    certification within 2 semesters of high school
19    graduation), the percentage of students graduating from
20    high school who are college and career ready, and the
21    percentage of graduates enrolled in community colleges,
22    colleges, and universities who are in one or more courses
23    that the community college, college, or university
24    identifies as a developmental course;
25        (D) student progress, including, where applicable, the
26    percentage of students in the ninth grade who have earned 5

 

 

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1    credits or more without failing more than one core class, a
2    measure of students entering kindergarten ready to learn, a
3    measure of growth, and the percentage of students who enter
4    high school on track for college and career readiness;
5        (E) the school environment, including, where
6    applicable, the percentage of students with less than 10
7    absences in a school year, the percentage of teachers with
8    less than 10 absences in a school year for reasons other
9    than professional development, leaves taken pursuant to
10    the federal Family Medical Leave Act of 1993, long-term
11    disability, or parental leaves, the 3-year average of the
12    percentage of teachers returning to the school from the
13    previous year, the number of different principals at the
14    school in the last 6 years, 2 or more indicators from any
15    school climate survey selected or approved by the State and
16    administered pursuant to Section 2-3.153 of this Code, with
17    the same or similar indicators included on school report
18    cards for all surveys selected or approved by the State
19    pursuant to Section 2-3.153 of this Code, and the combined
20    percentage of teachers rated as proficient or excellent in
21    their most recent evaluation; and
22        (F) a school district's and its individual schools'
23    balanced accountability measure, in accordance with
24    Section 2-3.25a of this Code; .
25        (G) a school district's Final Percent of Adequacy, as
26    defined in paragraph (4) of subsection (f) of Section

 

 

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1    18-8.15 of this Code;
2        (H) a school district's Local Capacity Target, as
3    defined in paragraph (2) of subsection (c) of Section
4    18-8.15 of this Code, displayed as a percentage amount; and
5        (I) a school district's Real Receipts, as defined in
6    paragraph (1) of subsection (d) of Section 18-8.15 of this
7    Code, divided by a school district's Adequacy Target, as
8    defined in paragraph (1) of subsection (b) of Section
9    18-8.15 of this Code, displayed as a percentage amount.
10    The school report card shall also provide information that
11allows for comparing the current outcome, progress, and
12environment data to the State average, to the school data from
13the past 5 years, and to the outcomes, progress, and
14environment of similar schools based on the type of school and
15enrollment of low-income students, special education students,
16and English learners.
17    (3) At the discretion of the State Superintendent, the
18school district report card shall include a subset of the
19information identified in paragraphs (A) through (E) of
20subsection (2) of this Section, as well as information relating
21to the operating expense per pupil and other finances of the
22school district, and the State report card shall include a
23subset of the information identified in paragraphs (A) through
24(E) of subsection (2) of this Section.
25    (4) Notwithstanding anything to the contrary in this
26Section, in consultation with key education stakeholders, the

 

 

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1State Superintendent shall at any time have the discretion to
2amend or update any and all metrics on the school, district, or
3State report card.
4    (5) Annually, no more than 30 calendar days after receipt
5of the school district and school report cards from the State
6Superintendent of Education, each school district, including
7special charter districts and districts subject to the
8provisions of Article 34, shall present such report cards at a
9regular school board meeting subject to applicable notice
10requirements, post the report cards on the school district's
11Internet web site, if the district maintains an Internet web
12site, make the report cards available to a newspaper of general
13circulation serving the district, and, upon request, send the
14report cards home to a parent (unless the district does not
15maintain an Internet web site, in which case the report card
16shall be sent home to parents without request). If the district
17posts the report card on its Internet web site, the district
18shall send a written notice home to parents stating (i) that
19the report card is available on the web site, (ii) the address
20of the web site, (iii) that a printed copy of the report card
21will be sent to parents upon request, and (iv) the telephone
22number that parents may call to request a printed copy of the
23report card.
24    (6) Nothing contained in this amendatory Act of the 98th
25General Assembly repeals, supersedes, invalidates, or
26nullifies final decisions in lawsuits pending on the effective

 

 

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1date of this amendatory Act of the 98th General Assembly in
2Illinois courts involving the interpretation of Public Act
397-8.
4(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
5eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
6    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
7    Sec. 10-19. Length of school term - experimental programs.
8Each school board shall annually prepare a calendar for the
9school term, specifying the opening and closing dates and
10providing a minimum term of at least 185 days to insure 176
11days of actual pupil attendance, computable under Section
1218-8.05 or 18-8.15, except that for the 1980-1981 school year
13only 175 days of actual pupil attendance shall be required
14because of the closing of schools pursuant to Section 24-2 on
15January 29, 1981 upon the appointment by the President of that
16day as a day of thanksgiving for the freedom of the Americans
17who had been held hostage in Iran. Any days allowed by law for
18teachers' institutes but not used as such or used as parental
19institutes as provided in Section 10-22.18d shall increase the
20minimum term by the school days not so used. Except as provided
21in Section 10-19.1, the board may not extend the school term
22beyond such closing date unless that extension of term is
23necessary to provide the minimum number of computable days. In
24case of such necessary extension school employees shall be paid
25for such additional time on the basis of their regular

 

 

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1contracts. A school board may specify a closing date earlier
2than that set on the annual calendar when the schools of the
3district have provided the minimum number of computable days
4under this Section. Nothing in this Section prevents the board
5from employing superintendents of schools, principals and
6other nonteaching personnel for a period of 12 months, or in
7the case of superintendents for a period in accordance with
8Section 10-23.8, or prevents the board from employing other
9personnel before or after the regular school term with payment
10of salary proportionate to that received for comparable work
11during the school term.
12    A school board may make such changes in its calendar for
13the school term as may be required by any changes in the legal
14school holidays prescribed in Section 24-2. A school board may
15make changes in its calendar for the school term as may be
16necessary to reflect the utilization of teachers' institute
17days as parental institute days as provided in Section
1810-22.18d.
19    The calendar for the school term and any changes must be
20submitted to and approved by the regional superintendent of
21schools before the calendar or changes may take effect.
22    With the prior approval of the State Board of Education and
23subject to review by the State Board of Education every 3
24years, any school board may, by resolution of its board and in
25agreement with affected exclusive collective bargaining
26agents, establish experimental educational programs, including

 

 

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1but not limited to programs for e-learning days as authorized
2under Section 10-20.56 of this Code, self-directed learning, or
3outside of formal class periods, which programs when so
4approved shall be considered to comply with the requirements of
5this Section as respects numbers of days of actual pupil
6attendance and with the other requirements of this Act as
7respects courses of instruction.
8(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
9    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
10    Sec. 10-22.5a. Attendance by dependents of United States
11military personnel, foreign exchange students, and certain
12nonresident pupils.
13    (a) To enter into written agreements with cultural exchange
14organizations, or with nationally recognized eleemosynary
15institutions that promote excellence in the arts, mathematics,
16or science. The written agreements may provide for tuition free
17attendance at the local district school by foreign exchange
18students, or by nonresident pupils of eleemosynary
19institutions. The local board of education, as part of the
20agreement, may require that the cultural exchange program or
21the eleemosynary institutions provide services to the district
22in exchange for the waiver of nonresident tuition.
23    To enter into written agreements with adjacent school
24districts to provide for tuition free attendance by a student
25of the adjacent district when requested for the student's

 

 

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1health and safety by the student or parent and both districts
2determine that the student's health or safety will be served by
3such attendance. Districts shall not be required to enter into
4such agreements nor be required to alter existing
5transportation services due to the attendance of such
6non-resident pupils.
7    (a-5) If, at the time of enrollment, a dependent of United
8States military personnel is housed in temporary housing
9located outside of a school district, but will be living within
10the district within 60 days after the time of initial
11enrollment, the dependent must be allowed to enroll, subject to
12the requirements of this subsection (a-5), and must not be
13charged tuition. Any United States military personnel
14attempting to enroll a dependent under this subsection (a-5)
15shall provide proof that the dependent will be living within
16the district within 60 days after the time of initial
17enrollment. Proof of residency may include, but is not limited
18to, postmarked mail addressed to the military personnel and
19sent to an address located within the district, a lease
20agreement for occupancy of a residence located within the
21district, or proof of ownership of a residence located within
22the district.
23    (b) Nonresident pupils and foreign exchange students
24attending school on a tuition free basis under such agreements
25and nonresident dependents of United States military personnel
26attending school on a tuition free basis may be counted for the

 

 

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1purposes of determining the apportionment of State aid provided
2under Section 18-8.05 or 18-8.15 of this Code. No organization
3or institution participating in agreements authorized under
4this Section may exclude any individual for participation in
5its program on account of the person's race, color, sex,
6religion or nationality.
7(Source: P.A. 98-739, eff. 7-16-14.)
 
8    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
9    Sec. 10-22.20. Classes for adults and youths whose
10schooling has been interrupted; conditions for State
11reimbursement; use of child care facilities.
12    (a) To establish special classes for the instruction (1) of
13persons of age 21 years or over and (2) of persons less than
14age 21 and not otherwise in attendance in public school, for
15the purpose of providing adults in the community and youths
16whose schooling has been interrupted with such additional basic
17education, vocational skill training, and other instruction as
18may be necessary to increase their qualifications for
19employment or other means of self-support and their ability to
20meet their responsibilities as citizens, including courses of
21instruction regularly accepted for graduation from elementary
22or high schools and for Americanization and high school
23equivalency testing review classes.
24    The board shall pay the necessary expenses of such classes
25out of school funds of the district, including costs of student

 

 

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

 

 

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

 

 

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

 

 

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1        (4) (Blank); and
2        (5) Funding for program years after 1999-2000 shall be
3    determined by the Illinois Community College Board.
4    (d) Upon its annual approval, the Illinois Community
5College Board shall provide grants to eligible programs for
6supplemental activities to improve or expand services under the
7Adult Education Act. Eligible programs shall be determined
8based upon performance outcomes of students in the programs as
9set by the Illinois Community College Board.
10    (e) Reimbursement under this Section shall not exceed the
11actual costs of the approved program.
12    If the amount appropriated to the Illinois Community
13College Board for reimbursement under this Section is less than
14the amount required under this Act, the apportionment shall be
15proportionately reduced.
16    School districts and community college districts may
17assess students up to $3.00 per credit hour, for classes other
18than Adult Basic Education level programs, if needed to meet
19program costs.
20    (f) An education plan shall be established for each adult
21or youth whose schooling has been interrupted and who is
22participating in the instructional programs provided under
23this Section.
24    Each school board and community college shall keep an
25accurate and detailed account of the students assigned to and
26receiving instruction under this Section who are subject to

 

 

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1State reimbursement and shall submit reports of services
2provided commencing with fiscal year 1997 as required by the
3Illinois Community College Board.
4    For classes authorized under this Section, a credit hour or
5unit of instruction is equal to 15 hours of direct instruction
6for students enrolled in approved adult education programs at
7midterm and making satisfactory progress, in accordance with
8standards established by the Illinois Community College Board.
9    (g) Upon proof submitted to the Illinois Department of
10Human Services of the payment of all claims submitted under
11this Section, that Department shall apply for federal funds
12made available therefor and any federal funds so received shall
13be paid into the General Revenue Fund in the State Treasury.
14    School districts or community colleges providing classes
15under this Section shall submit applications to the Illinois
16Community College Board for preapproval in accordance with the
17standards established by the Illinois Community College Board.
18Payments shall be made by the Illinois Community College Board
19based upon approved programs. Interim expenditure reports may
20be required by the Illinois Community College Board. Final
21claims for the school year shall be submitted to the regional
22superintendents for transmittal to the Illinois Community
23College Board. Final adjusted payments shall be made by
24September 30.
25    If a school district or community college district fails to
26provide, or is providing unsatisfactory or insufficient

 

 

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

 

 

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1may also permit any other State or local governmental agency or
2private agency providing care for children to purchase care.
3    After July 1, 1970 when the provisions of Section 10-20.20
4become operative in the district, children in a child-care
5facility shall be transferred to the kindergarten established
6under that Section for such portion of the day as may be
7required for the kindergarten program, and only the prorated
8costs of care and training provided in the Center for the
9remaining period shall be charged to the Illinois Department of
10Human Services or other persons or agencies paying for such
11care.
12    (i) The provisions of this Section shall also apply to
13school districts having a population exceeding 500,000.
14    (j) In addition to claiming reimbursement under this
15Section, a school district may claim general State aid under
16Section 18-8.05 or evidence-based funding under Section
1718-8.15 for any student under age 21 who is enrolled in courses
18accepted for graduation from elementary or high school and who
19otherwise meets the requirements of Section 18-8.05 or 18-8.15,
20as applicable.
21(Source: P.A. 98-718, eff. 1-1-15.)
 
22    (105 ILCS 5/10-29)
23    Sec. 10-29. Remote educational programs.
24    (a) For purposes of this Section, "remote educational
25program" means an educational program delivered to students in

 

 

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

 

 

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1        team.
2            (D) A description of the process the school
3        district will use to develop and approve a written
4        remote educational plan that meets the requirements of
5        subdivision (5) of this subsection (a).
6            (E) A description of the system the school district
7        will establish to calculate the number of clock hours a
8        student is participating in instruction in accordance
9        with the remote educational program.
10            (F) A description of the process for renewing a
11        remote educational program at the expiration of its
12        term.
13            (G) Such other terms and provisions as the school
14        district deems necessary to provide for the
15        establishment and delivery of a remote educational
16        program.
17        (2) The school district has determined that the remote
18    educational program's curriculum is aligned to State
19    learning standards and that the program offers instruction
20    and educational experiences consistent with those given to
21    students at the same grade level in the district.
22        (3) The remote educational program is delivered by
23    instructors that meet the following qualifications:
24            (A) they are certificated under Article 21 of this
25        Code;
26            (B) they meet applicable highly qualified criteria

 

 

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1        under the federal No Child Left Behind Act of 2001; and
2            (C) they have responsibility for all of the
3        following elements of the program: planning
4        instruction, diagnosing learning needs, prescribing
5        content delivery through class activities, assessing
6        learning, reporting outcomes to administrators and
7        parents and guardians, and evaluating the effects of
8        instruction.
9        (4) During the period of time from and including the
10    opening date to the closing date of the regular school term
11    of the school district established pursuant to Section
12    10-19 of this Code, participation in a remote educational
13    program may be claimed for general State aid purposes under
14    Section 18-8.05 of this Code or evidence-based funding
15    purposes under Section 18-8.15 of this Code on any calendar
16    day, notwithstanding whether the day is a day of pupil
17    attendance or institute day on the school district's
18    calendar or any other provision of law restricting
19    instruction on that day. If the district holds year-round
20    classes in some buildings, the district shall classify each
21    student's participation in a remote educational program as
22    either on a year-round or a non-year-round schedule for
23    purposes of claiming general State aid or evidence-based
24    funding. Outside of the regular school term of the
25    district, the remote educational program may be offered as
26    part of any summer school program authorized by this Code.

 

 

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

 

 

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

 

 

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

 

 

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1    assessments administered by the school district pursuant
2    to Section 2-3.64a-5 of this Code at the attendance center
3    in which the student is enrolled and in accordance with the
4    attendance center's assessment policies and schedule. The
5    student must be included within all accountability
6    determinations for the school district and attendance
7    center under State and federal law.
8        (7) The term of a student's participation in a remote
9    educational program may not extend for longer than 12
10    months, unless the term is renewed by the school district.
11    The district may only renew a student's participation in a
12    remote educational program following an evaluation of the
13    student's progress in the program, a determination that the
14    student's continuation in the program will best serve the
15    student's individual learning needs, and an amendment to
16    the student's written remote educational plan addressing
17    any changes for the upcoming term of the program.
18    For purposes of this Section, a remote educational program
19does not include instruction delivered to students through an
20e-learning program approved under Section 10-20.56 of this
21Code.
22    (b) A school district may, by resolution of its school
23board, establish a remote educational program.
24    (c) Clock hours of instruction by students in a remote
25educational program meeting the requirements of this Section
26may be claimed by the school district and shall be counted as

 

 

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

 

 

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1necessary to ensure compliance by remote educational programs
2with the requirements of this Section and other applicable
3legal requirements.
4(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
599-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
6    (105 ILCS 5/11E-135)
7    Sec. 11E-135. Incentives. For districts reorganizing under
8this Article and for a district or districts that annex all of
9the territory of one or more entire other school districts in
10accordance with Article 7 of this Code, the following payments
11shall be made from appropriations made for these purposes:
12    (a)(1) For a combined school district, as defined in
13Section 11E-20 of this Code, or for a unit district, as defined
14in Section 11E-25 of this Code, for its first year of
15existence, the general State aid and supplemental general State
16aid calculated under Section 18-8.05 of this Code or the
17evidence-based funding calculated under Section 18-8.15 of
18this Code, as applicable, shall be computed for the new
19district and for the previously existing districts for which
20property is totally included within the new district. If the
21computation on the basis of the previously existing districts
22is greater, a supplementary payment equal to the difference
23shall be made for the first 4 years of existence of the new
24district.
25    (2) For a school district that annexes all of the territory

 

 

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1of one or more entire other school districts as defined in
2Article 7 of this Code, for the first year during which the
3change of boundaries attributable to the annexation becomes
4effective for all purposes, as determined under Section 7-9 of
5this Code, the general State aid and supplemental general State
6aid calculated under Section 18-8.05 of this Code or the
7evidence-based funding calculated under Section 18-8.15 of
8this Code, as applicable, shall be computed for the annexing
9district as constituted after the annexation and for the
10annexing and each annexed district as constituted prior to the
11annexation; and if the computation on the basis of the annexing
12and annexed districts as constituted prior to the annexation is
13greater, then a supplementary payment equal to the difference
14shall be made for the first 4 years of existence of the
15annexing school district as constituted upon the annexation.
16    (3) For 2 or more school districts that annex all of the
17territory of one or more entire other school districts, as
18defined in Article 7 of this Code, for the first year during
19which the change of boundaries attributable to the annexation
20becomes effective for all purposes, as determined under Section
217-9 of this Code, the general State aid and supplemental
22general State aid calculated under Section 18-8.05 of this Code
23or the evidence-based funding calculated under Section 18-8.15
24of this Code, as applicable, shall be computed for each
25annexing district as constituted after the annexation and for
26each annexing and annexed district as constituted prior to the

 

 

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1annexation; and if the aggregate of the general State aid and
2supplemental general State aid or evidence-based funding, as
3applicable, as so computed for the annexing districts as
4constituted after the annexation is less than the aggregate of
5the general State aid and supplemental general State aid or
6evidence-based funding, as applicable, as so computed for the
7annexing and annexed districts, as constituted prior to the
8annexation, then a supplementary payment equal to the
9difference shall be made and allocated between or among the
10annexing districts, as constituted upon the annexation, for the
11first 4 years of their existence. The total difference payment
12shall be allocated between or among the annexing districts in
13the same ratio as the pupil enrollment from that portion of the
14annexed district or districts that is annexed to each annexing
15district bears to the total pupil enrollment from the entire
16annexed district or districts, as such pupil enrollment is
17determined for the school year last ending prior to the date
18when the change of boundaries attributable to the annexation
19becomes effective for all purposes. The amount of the total
20difference payment and the amount thereof to be allocated to
21the annexing districts shall be computed by the State Board of
22Education on the basis of pupil enrollment and other data that
23shall be certified to the State Board of Education, on forms
24that it shall provide for that purpose, by the regional
25superintendent of schools for each educational service region
26in which the annexing and annexed districts are located.

 

 

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1    (4) For a school district conversion, as defined in Section
211E-15 of this Code, or a multi-unit conversion, as defined in
3subsection (b) of Section 11E-30 of this Code, if in their
4first year of existence the newly created elementary districts
5and the newly created high school district, from a school
6district conversion, or the newly created elementary district
7or districts and newly created combined high school - unit
8district, from a multi-unit conversion, qualify for less
9general State aid under Section 18-8.05 of this Code or
10evidence-based funding under Section 18-8.15 of this Code than
11would have been payable under Section 18-8.05 or 18-8.15, as
12applicable, for that same year to the previously existing
13districts, then a supplementary payment equal to that
14difference shall be made for the first 4 years of existence of
15the newly created districts. The aggregate amount of each
16supplementary payment shall be allocated among the newly
17created districts in the proportion that the deemed pupil
18enrollment in each district during its first year of existence
19bears to the actual aggregate pupil enrollment in all of the
20districts during their first year of existence. For purposes of
21each allocation:
22        (A) the deemed pupil enrollment of the newly created
23    high school district from a school district conversion
24    shall be an amount equal to its actual pupil enrollment for
25    its first year of existence multiplied by 1.25;
26        (B) the deemed pupil enrollment of each newly created

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1eligible for payments under this paragraph (6.5) and that are
2effective on or after July 1, 2004, but before January 11, 2008
3(the effective date of Public Act 95-707), the first required
4yearly payment under this paragraph (6.5) shall be paid in the
5fiscal year of January 11, 2008 (the effective date of Public
6Act 95-707). Subsequent required yearly payments shall be paid
7in subsequent fiscal years until the payment obligation under
8this paragraph (6.5) is complete.
9    (7) Claims for financial assistance under this subsection
10(a) may not be recomputed except as expressly provided under
11