Sen. Andy Manar

Filed: 3/31/2017

 

 


 

 


 
10000SB0001sam002LRB100 06371 NHT 24463 a

1
AMENDMENT TO SENATE BILL 1

2    AMENDMENT NO. ______. Amend Senate Bill 1 by replacing
3everything after the enacting clause with the following:
 
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

 

 

10000SB0001sam002- 2 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 3 -LRB100 06371 NHT 24463 a

1adopted, shall be allocated to and when collected shall be paid
2to the municipal treasurer, who shall deposit those taxes into
3a special fund called the special tax allocation fund of the
4municipality for the purpose of paying economic development
5project costs and obligations incurred in the payment thereof.
6    The municipality, by an ordinance adopting tax increment
7allocation financing, may pledge the funds in and to be
8deposited in the special tax allocation fund for the payment of
9obligations issued under this Act and for the payment of
10economic development project costs. No part of the current
11equalized assessed valuation of each property in the economic
12development project area attributable to any increase above the
13total initial equalized assessed value, of such properties
14shall be used in calculating the general State school aid
15formula, provided for in Section 18-8 of the School Code, or
16the evidence-based funding formula, provided for in Section
1718-8.15 of the School Code, until such time as all economic
18development projects costs have been paid as provided for in
19this Section.
20    When the economic development project costs, including
21without limitation all municipal obligations financing
22economic development project costs incurred under this Act,
23have been paid, all surplus funds then remaining in the special
24tax allocation fund shall be distributed by being paid by the
25municipal treasurer to the county collector, who shall
26immediately thereafter pay those funds to the taxing districts

 

 

10000SB0001sam002- 4 -LRB100 06371 NHT 24463 a

1having taxable property in the economic development project
2area in the same manner and proportion as the most recent
3distribution by the county collector to those taxing districts
4of real property taxes from real property in the economic
5development project area.
6    Upon the payment of all economic development project costs,
7retirement of obligations and the distribution of any excess
8monies pursuant to this Section the municipality shall adopt an
9ordinance dissolving the special tax allocation fund for the
10economic development project area, terminating the economic
11development project area, and terminating the use of tax
12increment allocation financing for the economic development
13project area. Thereafter the rates of the taxing districts
14shall be extended and taxes levied, collected and distributed
15in the manner applicable in the absence of the adoption of tax
16increment allocation financing.
17    Nothing in this Section shall be construed as relieving
18property in economic development project areas from being
19assessed as provided in the Property Tax Code, or as relieving
20owners of that property from paying a uniform rate of taxes, as
21required by Section 4 of Article IX of the Illinois
22Constitution.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    Section 10. The State Finance Act is amended by changing
25Section 13.2 as follows:
 

 

 

10000SB0001sam002- 5 -LRB100 06371 NHT 24463 a

1    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
2    Sec. 13.2. Transfers among line item appropriations.
3    (a) Transfers among line item appropriations from the same
4treasury fund for the objects specified in this Section may be
5made in the manner provided in this Section when the balance
6remaining in one or more such line item appropriations is
7insufficient for the purpose for which the appropriation was
8made.
9    (a-1) No transfers may be made from one agency to another
10agency, nor may transfers be made from one institution of
11higher education to another institution of higher education
12except as provided by subsection (a-4).
13    (a-2) Except as otherwise provided in this Section,
14transfers may be made only among the objects of expenditure
15enumerated in this Section, except that no funds may be
16transferred from any appropriation for personal services, from
17any appropriation for State contributions to the State
18Employees' Retirement System, from any separate appropriation
19for employee retirement contributions paid by the employer, nor
20from any appropriation for State contribution for employee
21group insurance. During State fiscal year 2005, an agency may
22transfer amounts among its appropriations within the same
23treasury fund for personal services, employee retirement
24contributions paid by employer, and State Contributions to
25retirement systems; notwithstanding and in addition to the

 

 

10000SB0001sam002- 6 -LRB100 06371 NHT 24463 a

1transfers authorized in subsection (c) of this Section, the
2fiscal year 2005 transfers authorized in this sentence may be
3made in an amount not to exceed 2% of the aggregate amount
4appropriated to an agency within the same treasury fund. During
5State fiscal year 2007, the Departments of Children and Family
6Services, Corrections, Human Services, and Juvenile Justice
7may transfer amounts among their respective appropriations
8within the same treasury fund for personal services, employee
9retirement contributions paid by employer, and State
10contributions to retirement systems. During State fiscal year
112010, the Department of Transportation may transfer amounts
12among their respective appropriations within the same treasury
13fund for personal services, employee retirement contributions
14paid by employer, and State contributions to retirement
15systems. During State fiscal years 2010 and 2014 only, an
16agency may transfer amounts among its respective
17appropriations within the same treasury fund for personal
18services, employee retirement contributions paid by employer,
19and State contributions to retirement systems.
20Notwithstanding, and in addition to, the transfers authorized
21in subsection (c) of this Section, these transfers may be made
22in an amount not to exceed 2% of the aggregate amount
23appropriated to an agency within the same treasury fund.
24    (a-2.5) During State fiscal year 2015 only, the State's
25Attorneys Appellate Prosecutor may transfer amounts among its
26respective appropriations contained in operational line items

 

 

10000SB0001sam002- 7 -LRB100 06371 NHT 24463 a

1within the same treasury fund. Notwithstanding, and in addition
2to, the transfers authorized in subsection (c) of this Section,
3these transfers may be made in an amount not to exceed 4% of
4the aggregate amount appropriated to the State's Attorneys
5Appellate Prosecutor within the same treasury fund.
6    (a-3) Further, if an agency receives a separate
7appropriation for employee retirement contributions paid by
8the employer, any transfer by that agency into an appropriation
9for personal services must be accompanied by a corresponding
10transfer into the appropriation for employee retirement
11contributions paid by the employer, in an amount sufficient to
12meet the employer share of the employee contributions required
13to be remitted to the retirement system.
14    (a-4) Long-Term Care Rebalancing. The Governor may
15designate amounts set aside for institutional services
16appropriated from the General Revenue Fund or any other State
17fund that receives monies for long-term care services to be
18transferred to all State agencies responsible for the
19administration of community-based long-term care programs,
20including, but not limited to, community-based long-term care
21programs administered by the Department of Healthcare and
22Family Services, the Department of Human Services, and the
23Department on Aging, provided that the Director of Healthcare
24and Family Services first certifies that the amounts being
25transferred are necessary for the purpose of assisting persons
26in or at risk of being in institutional care to transition to

 

 

10000SB0001sam002- 8 -LRB100 06371 NHT 24463 a

1community-based settings, including the financial data needed
2to prove the need for the transfer of funds. The total amounts
3transferred shall not exceed 4% in total of the amounts
4appropriated from the General Revenue Fund or any other State
5fund that receives monies for long-term care services for each
6fiscal year. A notice of the fund transfer must be made to the
7General Assembly and posted at a minimum on the Department of
8Healthcare and Family Services website, the Governor's Office
9of Management and Budget website, and any other website the
10Governor sees fit. These postings shall serve as notice to the
11General Assembly of the amounts to be transferred. Notice shall
12be given at least 30 days prior to transfer.
13    (b) In addition to the general transfer authority provided
14under subsection (c), the following agencies have the specific
15transfer authority granted in this subsection:
16    The Department of Healthcare and Family Services is
17authorized to make transfers representing savings attributable
18to not increasing grants due to the births of additional
19children from line items for payments of cash grants to line
20items for payments for employment and social services for the
21purposes outlined in subsection (f) of Section 4-2 of the
22Illinois Public Aid Code.
23    The Department of Children and Family Services is
24authorized to make transfers not exceeding 2% of the aggregate
25amount appropriated to it within the same treasury fund for the
26following line items among these same line items: Foster Home

 

 

10000SB0001sam002- 9 -LRB100 06371 NHT 24463 a

1and Specialized Foster Care and Prevention, Institutions and
2Group Homes and Prevention, and Purchase of Adoption and
3Guardianship Services.
4    The Department on Aging is authorized to make transfers not
5exceeding 2% of the aggregate amount appropriated to it within
6the same treasury fund for the following Community Care Program
7line items among these same line items: purchase of services
8covered by the Community Care Program and Comprehensive Case
9Coordination.
10    The State Treasurer is authorized to make transfers among
11line item appropriations from the Capital Litigation Trust
12Fund, with respect to costs incurred in fiscal years 2002 and
132003 only, when the balance remaining in one or more such line
14item appropriations is insufficient for the purpose for which
15the appropriation was made, provided that no such transfer may
16be made unless the amount transferred is no longer required for
17the purpose for which that appropriation was made.
18    The State Board of Education is authorized to make
19transfers from line item appropriations within the same
20treasury fund for General State Aid, and General State Aid -
21Hold Harmless, Evidence-Based Funding, provided that no such
22transfer may be made unless the amount transferred is no longer
23required for the purpose for which that appropriation was made,
24to the line item appropriation for Transitional Assistance when
25the balance remaining in such line item appropriation is
26insufficient for the purpose for which the appropriation was

 

 

10000SB0001sam002- 10 -LRB100 06371 NHT 24463 a

1made.
2    The State Board of Education is authorized to make
3transfers between the following line item appropriations
4within the same treasury fund: Disabled Student
5Services/Materials (Section 14-13.01 of the School Code),
6Disabled Student Transportation Reimbursement (Section
714-13.01 of the School Code), Disabled Student Tuition -
8Private Tuition (Section 14-7.02 of the School Code),
9Extraordinary Special Education (Section 14-7.02b of the
10School Code), Reimbursement for Free Lunch/Breakfast Program,
11Summer School Payments (Section 18-4.3 of the School Code), and
12Transportation - Regular/Vocational Reimbursement (Section
1329-5 of the School Code). Such transfers shall be made only
14when the balance remaining in one or more such line item
15appropriations is insufficient for the purpose for which the
16appropriation was made and provided that no such transfer may
17be made unless the amount transferred is no longer required for
18the purpose for which that appropriation was made.
19    The Department of Healthcare and Family Services is
20authorized to make transfers not exceeding 4% of the aggregate
21amount appropriated to it, within the same treasury fund, among
22the various line items appropriated for Medical Assistance.
23    (c) The sum of such transfers for an agency in a fiscal
24year shall not exceed 2% of the aggregate amount appropriated
25to it within the same treasury fund for the following objects:
26Personal Services; Extra Help; Student and Inmate

 

 

10000SB0001sam002- 11 -LRB100 06371 NHT 24463 a

1Compensation; State Contributions to Retirement Systems; State
2Contributions to Social Security; State Contribution 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; and, in appropriations
10to institutions of higher education, Awards and Grants.
11Notwithstanding the above, any amounts appropriated for
12payment of workers' compensation claims to an agency to which
13the authority to evaluate, administer and pay such claims has
14been delegated by the Department of Central Management Services
15may be transferred to any other expenditure object where such
16amounts exceed the amount necessary for the payment of such
17claims.
18    (c-1) Special provisions for State fiscal year 2003.
19Notwithstanding any other provision of this Section to the
20contrary, for State fiscal year 2003 only, transfers among line
21item appropriations to an agency from the same treasury fund
22may be made provided that the sum of such transfers for an
23agency in State fiscal year 2003 shall not exceed 3% of the
24aggregate amount appropriated to that State agency for State
25fiscal year 2003 for the following objects: personal services,
26except that no transfer may be approved which reduces the

 

 

10000SB0001sam002- 12 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 13 -LRB100 06371 NHT 24463 a

1operational or lump sum expenses only, provided that the sum of
2such transfers for a State agency in State fiscal year 2015
3shall not exceed 4% of the aggregate amount appropriated to
4that State agency for operational or lump sum expenses for
5State fiscal year 2015. For the purpose of this subsection,
6"operational or lump sum expenses" includes the following
7objects: personal services; extra help; student and inmate
8compensation; State contributions to retirement systems; State
9contributions to social security; State contributions for
10employee group insurance; contractual services; travel;
11commodities; printing; equipment; electronic data processing;
12operation of automotive equipment; telecommunications
13services; travel and allowance for committed, paroled, and
14discharged prisoners; library books; federal matching grants
15for student loans; refunds; workers' compensation,
16occupational disease, and tort claims; lump sum and other
17purposes; and lump sum operations. For the purpose of this
18subsection (c-3), "State agency" does not include the Attorney
19General, the Secretary of State, the Comptroller, the
20Treasurer, or the legislative or judicial branches.
21    (d) Transfers among appropriations made to agencies of the
22Legislative and Judicial departments and to the
23constitutionally elected officers in the Executive branch
24require the approval of the officer authorized in Section 10 of
25this Act to approve and certify vouchers. Transfers among
26appropriations made to the University of Illinois, Southern

 

 

10000SB0001sam002- 14 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 15 -LRB100 06371 NHT 24463 a

1the State Board of Education, in consultation with the State
2Comptroller, may transfer line item appropriations between the
3General Revenue Fund and the Education Assistance Fund for the
4following programs:
5        (1) Disabled Student Personnel Reimbursement (Section
6    14-13.01 of the School Code);
7        (2) Disabled Student Transportation Reimbursement
8    (subsection (b) of Section 14-13.01 of the School Code);
9        (3) Disabled Student Tuition - Private Tuition
10    (Section 14-7.02 of the School Code);
11        (4) Extraordinary Special Education (Section 14-7.02b
12    of the School Code);
13        (5) Reimbursement for Free Lunch/Breakfast Programs;
14        (6) Summer School Payments (Section 18-4.3 of the
15    School Code);
16        (7) Transportation - Regular/Vocational Reimbursement
17    (Section 29-5 of the School Code);
18        (8) Regular Education Reimbursement (Section 18-3 of
19    the School Code); and
20        (9) Special Education Reimbursement (Section 14-7.03
21    of the School Code).
22(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
23eff. 3-26-15.)
 
24    Section 15. The Property Tax Code is amended by changing
25Sections 18-200 and 18-249 as follows:
 

 

 

10000SB0001sam002- 16 -LRB100 06371 NHT 24463 a

1    (35 ILCS 200/18-200)
2    Sec. 18-200. School Code. A school district's State aid
3shall not be reduced under the computation under subsections
45(a) through 5(h) of Part A of Section 18-8 of the School Code
5or under Section 18-8.15 of the School Code due to the
6operating tax rate falling from above the minimum requirement
7of that Section of the School Code to below the minimum
8requirement of that Section of the School Code due to the
9operation of this Law.
10(Source: P.A. 87-17; 88-455.)
 
11    (35 ILCS 200/18-249)
12    Sec. 18-249. Miscellaneous provisions.
13    (a) Certification of new property. For the 1994 levy year,
14the chief county assessment officer shall certify to the county
15clerk, after all changes by the board of review or board of
16appeals, as the case may be, the assessed value of new property
17by taxing district for the 1994 levy year under rules
18promulgated by the Department.
19    (b) School Code. A school district's State aid shall not be
20reduced under the computation under subsections 5(a) through
215(h) of Part A of Section 18-8 of the School Code or under
22Section 18-8.15 of the School Code due to the operating tax
23rate falling from above the minimum requirement of that Section
24of the School Code to below the minimum requirement of that

 

 

10000SB0001sam002- 17 -LRB100 06371 NHT 24463 a

1Section of the School Code due to the operation of this Law.
2    (c) Rules. The Department shall make and promulgate
3reasonable rules relating to the administration of the purposes
4and provisions of Sections 18-246 through 18-249 as may be
5necessary or appropriate.
6(Source: P.A. 89-1, eff. 2-12-95.)
 
7    Section 17. The Illinois Pension Code is amended by
8changing Section 16-158 as follows:
 
9    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
10    (Text of Section WITHOUT the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 16-158. Contributions by State and other employing
13units.
14    (a) The State shall make contributions to the System by
15means of appropriations from the Common School Fund and other
16State funds of amounts which, together with other employer
17contributions, employee contributions, investment income, and
18other income, will be sufficient to meet the cost of
19maintaining and administering the System on a 90% funded basis
20in accordance with actuarial recommendations.
21    The Board shall determine the amount of State contributions
22required for each fiscal year on the basis of the actuarial
23tables and other assumptions adopted by the Board and the
24recommendations of the actuary, using the formula in subsection

 

 

10000SB0001sam002- 18 -LRB100 06371 NHT 24463 a

1(b-3).
2    (a-1) Annually, on or before November 15 until November 15,
32011, the Board shall certify to the Governor the amount of the
4required State contribution for the coming fiscal year. The
5certification under this subsection (a-1) shall include a copy
6of the actuarial recommendations upon which it is based and
7shall specifically identify the System's projected State
8normal cost for that fiscal year.
9    On or before May 1, 2004, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2005, taking
12into account the amounts appropriated to and received by the
13System under subsection (d) of Section 7.2 of the General
14Obligation Bond Act.
15    On or before July 1, 2005, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2006, taking
18into account the changes in required State contributions made
19by this amendatory Act of the 94th General Assembly.
20    On or before April 1, 2011, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2011, applying
23the changes made by Public Act 96-889 to the System's assets
24and liabilities as of June 30, 2009 as though Public Act 96-889
25was approved on that date.
26    (a-5) On or before November 1 of each year, beginning

 

 

10000SB0001sam002- 19 -LRB100 06371 NHT 24463 a

1November 1, 2012, the Board shall submit to the State Actuary,
2the Governor, and the General Assembly a proposed certification
3of the amount of the required State contribution to the System
4for the next fiscal year, along with all of the actuarial
5assumptions, calculations, and data upon which that proposed
6certification is based. On or before January 1 of each year,
7beginning January 1, 2013, the State Actuary shall issue a
8preliminary report concerning the proposed certification and
9identifying, if necessary, recommended changes in actuarial
10assumptions that the Board must consider before finalizing its
11certification of the required State contributions. On or before
12January 15, 2013 and each January 15 thereafter, the Board
13shall certify to the Governor and the General Assembly the
14amount of the required State contribution for the next fiscal
15year. The Board's certification must note any deviations from
16the State Actuary's recommended changes, the reason or reasons
17for not following the State Actuary's recommended changes, and
18the fiscal impact of not following the State Actuary's
19recommended changes on the required State contribution.
20    (b) Through State fiscal year 1995, the State contributions
21shall be paid to the System in accordance with Section 18-7 of
22the School Code.
23    (b-1) Beginning in State fiscal year 1996, on the 15th day
24of each month, or as soon thereafter as may be practicable, the
25Board shall submit vouchers for payment of State contributions
26to the System, in a total monthly amount of one-twelfth of the

 

 

10000SB0001sam002- 20 -LRB100 06371 NHT 24463 a

1required annual State contribution certified under subsection
2(a-1). From the effective date of this amendatory Act of the
393rd General Assembly through June 30, 2004, the Board shall
4not submit vouchers for the remainder of fiscal year 2004 in
5excess of the fiscal year 2004 certified contribution amount
6determined under this Section after taking into consideration
7the transfer to the System under subsection (a) of Section
86z-61 of the State Finance Act. These vouchers shall be paid by
9the State Comptroller and Treasurer by warrants drawn on the
10funds appropriated to the System for that fiscal year.
11    If in any month the amount remaining unexpended from all
12other appropriations to the System for the applicable fiscal
13year (including the appropriations to the System under Section
148.12 of the State Finance Act and Section 1 of the State
15Pension Funds Continuing Appropriation Act) is less than the
16amount lawfully vouchered under this subsection, the
17difference shall be paid from the Common School Fund under the
18continuing appropriation authority provided in Section 1.1 of
19the State Pension Funds Continuing Appropriation Act.
20    (b-2) Allocations from the Common School Fund apportioned
21to school districts not coming under this System shall not be
22diminished or affected by the provisions of this Article.
23    (b-3) For State fiscal years 2012 through 2045, the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be
26sufficient to bring the total assets of the System up to 90% of

 

 

10000SB0001sam002- 21 -LRB100 06371 NHT 24463 a

1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of payroll over the years remaining to and
5including fiscal year 2045 and shall be determined under the
6projected unit credit actuarial cost method.
7    For State fiscal years 1996 through 2005, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10so that by State fiscal year 2011, the State is contributing at
11the rate required under this Section; except that in the
12following specified State fiscal years, the State contribution
13to the System shall not be less than the following indicated
14percentages of the applicable employee payroll, even if the
15indicated percentage will produce a State contribution in
16excess of the amount otherwise required under this subsection
17and subsection (a), and notwithstanding any contrary
18certification made under subsection (a-1) before the effective
19date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
20in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
212003; and 13.56% in FY 2004.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2006 is
24$534,627,700.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2007 is

 

 

10000SB0001sam002- 22 -LRB100 06371 NHT 24463 a

1$738,014,500.
2    For each of State fiscal years 2008 through 2009, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5from the required State contribution for State fiscal year
62007, so that by State fiscal year 2011, the State is
7contributing at the rate otherwise required under this Section.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2010 is
10$2,089,268,000 and shall be made from the proceeds of bonds
11sold in fiscal year 2010 pursuant to Section 7.2 of the General
12Obligation Bond Act, less (i) the pro rata share of bond sale
13expenses determined by the System's share of total bond
14proceeds, (ii) any amounts received from the Common School Fund
15in fiscal year 2010, and (iii) any reduction in bond proceeds
16due to the issuance of discounted bonds, if applicable.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2011 is
19the amount recertified by the System on or before April 1, 2011
20pursuant to subsection (a-1) of this Section and shall be made
21from the proceeds of bonds sold in fiscal year 2011 pursuant to
22Section 7.2 of the General Obligation Bond Act, less (i) the
23pro rata share of bond sale expenses determined by the System's
24share of total bond proceeds, (ii) any amounts received from
25the Common School Fund in fiscal year 2011, and (iii) any
26reduction in bond proceeds due to the issuance of discounted

 

 

10000SB0001sam002- 23 -LRB100 06371 NHT 24463 a

1bonds, if applicable. This amount shall include, in addition to
2the amount certified by the System, an amount necessary to meet
3employer contributions required by the State as an employer
4under paragraph (e) of this Section, which may also be used by
5the System for contributions required by paragraph (a) of
6Section 16-127.
7    Beginning in State fiscal year 2046, the minimum State
8contribution for each fiscal year shall be the amount needed to
9maintain the total assets of the System at 90% of the total
10actuarial liabilities of the System.
11    Amounts received by the System pursuant to Section 25 of
12the Budget Stabilization Act or Section 8.12 of the State
13Finance Act in any fiscal year do not reduce and do not
14constitute payment of any portion of the minimum State
15contribution required under this Article in that fiscal year.
16Such amounts shall not reduce, and shall not be included in the
17calculation of, the required State contributions under this
18Article in any future year until the System has reached a
19funding ratio of at least 90%. A reference in this Article to
20the "required State contribution" or any substantially similar
21term does not include or apply to any amounts payable to the
22System under Section 25 of the Budget Stabilization Act.
23    Notwithstanding any other provision of this Section, the
24required State contribution for State fiscal year 2005 and for
25fiscal year 2008 and each fiscal year thereafter, as calculated
26under this Section and certified under subsection (a-1), shall

 

 

10000SB0001sam002- 24 -LRB100 06371 NHT 24463 a

1not exceed an amount equal to (i) the amount of the required
2State contribution that would have been calculated under this
3Section for that fiscal year if the System had not received any
4payments under subsection (d) of Section 7.2 of the General
5Obligation Bond Act, minus (ii) the portion of the State's
6total debt service payments for that fiscal year on the bonds
7issued in fiscal year 2003 for the purposes of that Section
87.2, as determined and certified by the Comptroller, that is
9the same as the System's portion of the total moneys
10distributed under subsection (d) of Section 7.2 of the General
11Obligation Bond Act. In determining this maximum for State
12fiscal years 2008 through 2010, however, the amount referred to
13in item (i) shall be increased, as a percentage of the
14applicable employee payroll, in equal increments calculated
15from the sum of the required State contribution for State
16fiscal year 2007 plus the applicable portion of the State's
17total debt service payments for fiscal year 2007 on the bonds
18issued in fiscal year 2003 for the purposes of Section 7.2 of
19the General Obligation Bond Act, so that, by State fiscal year
202011, the State is contributing at the rate otherwise required
21under this Section.
22    (c) Payment of the required State contributions and of all
23pensions, retirement annuities, death benefits, refunds, and
24other benefits granted under or assumed by this System, and all
25expenses in connection with the administration and operation
26thereof, are obligations of the State.

 

 

10000SB0001sam002- 25 -LRB100 06371 NHT 24463 a

1    If members are paid from special trust or federal funds
2which are administered by the employing unit, whether school
3district or other unit, the employing unit shall pay to the
4System from such funds the full accruing retirement costs based
5upon that service, which, beginning July 1, 2018 2014, shall be
6at a rate, expressed as a percentage of salary, equal to the
7total employer's minimum contribution to the System to be made
8by the State for that fiscal year, including both normal cost
9and unfunded liability components, expressed as a percentage of
10payroll, as determined by the System under subsection (b-3) of
11this Section. Employer contributions, based on salary paid to
12members from federal funds, may be forwarded by the
13distributing agency of the State of Illinois to the System
14prior to allocation, in an amount determined in accordance with
15guidelines established by such agency and the System. Any
16contribution for fiscal year 2015 collected as a result of the
17change made by this amendatory Act of the 98th General Assembly
18shall be considered a State contribution under subsection (b-3)
19of this Section.
20    (d) Effective July 1, 1986, any employer of a teacher as
21defined in paragraph (8) of Section 16-106 shall pay the
22employer's normal cost of benefits based upon the teacher's
23service, in addition to employee contributions, as determined
24by the System. Such employer contributions shall be forwarded
25monthly in accordance with guidelines established by the
26System.

 

 

10000SB0001sam002- 26 -LRB100 06371 NHT 24463 a

1    However, with respect to benefits granted under Section
216-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
3of Section 16-106, the employer's contribution shall be 12%
4(rather than 20%) of the member's highest annual salary rate
5for each year of creditable service granted, and the employer
6shall also pay the required employee contribution on behalf of
7the teacher. For the purposes of Sections 16-133.4 and
816-133.5, a teacher as defined in paragraph (8) of Section
916-106 who is serving in that capacity while on leave of
10absence from another employer under this Article shall not be
11considered an employee of the employer from which the teacher
12is on leave.
13    (e) Beginning July 1, 1998, every employer of a teacher
14shall pay to the System an employer contribution computed as
15follows:
16        (1) Beginning July 1, 1998 through June 30, 1999, the
17    employer contribution shall be equal to 0.3% of each
18    teacher's salary.
19        (2) Beginning July 1, 1999 and thereafter, the employer
20    contribution shall be equal to 0.58% of each teacher's
21    salary.
22The school district or other employing unit may pay these
23employer contributions out of any source of funding available
24for that purpose and shall forward the contributions to the
25System on the schedule established for the payment of member
26contributions.

 

 

10000SB0001sam002- 27 -LRB100 06371 NHT 24463 a

1    These employer contributions are intended to offset a
2portion of the cost to the System of the increases in
3retirement benefits resulting from this amendatory Act of 1998.
4    Each employer of teachers is entitled to a credit against
5the contributions required under this subsection (e) with
6respect to salaries paid to teachers for the period January 1,
72002 through June 30, 2003, equal to the amount paid by that
8employer under subsection (a-5) of Section 6.6 of the State
9Employees Group Insurance Act of 1971 with respect to salaries
10paid to teachers for that period.
11    The additional 1% employee contribution required under
12Section 16-152 by this amendatory Act of 1998 is the
13responsibility of the teacher and not the teacher's employer,
14unless the employer agrees, through collective bargaining or
15otherwise, to make the contribution on behalf of the teacher.
16    If an employer is required by a contract in effect on May
171, 1998 between the employer and an employee organization to
18pay, on behalf of all its full-time employees covered by this
19Article, all mandatory employee contributions required under
20this Article, then the employer shall be excused from paying
21the employer contribution required under this subsection (e)
22for the balance of the term of that contract. The employer and
23the employee organization shall jointly certify to the System
24the existence of the contractual requirement, in such form as
25the System may prescribe. This exclusion shall cease upon the
26termination, extension, or renewal of the contract at any time

 

 

10000SB0001sam002- 28 -LRB100 06371 NHT 24463 a

1after May 1, 1998.
2    (f) If the amount of a teacher's salary for any school year
3used to determine final average salary exceeds the member's
4annual full-time salary rate with the same employer for the
5previous school year by more than 6%, the teacher's employer
6shall pay to the System, in addition to all other payments
7required under this Section and in accordance with guidelines
8established by the System, the present value of the increase in
9benefits resulting from the portion of the increase in salary
10that is in excess of 6%. This present value shall be computed
11by the System on the basis of the actuarial assumptions and
12tables used in the most recent actuarial valuation of the
13System that is available at the time of the computation. If a
14teacher's salary for the 2005-2006 school year is used to
15determine final average salary under this subsection (f), then
16the changes made to this subsection (f) by Public Act 94-1057
17shall apply in calculating whether the increase in his or her
18salary is in excess of 6%. For the purposes of this Section,
19change in employment under Section 10-21.12 of the School Code
20on or after June 1, 2005 shall constitute a change in employer.
21The System may require the employer to provide any pertinent
22information or documentation. The changes made to this
23subsection (f) by this amendatory Act of the 94th General
24Assembly apply without regard to whether the teacher was in
25service on or after its effective date.
26    Whenever it determines that a payment is or may be required

 

 

10000SB0001sam002- 29 -LRB100 06371 NHT 24463 a

1under this subsection, the System shall calculate the amount of
2the payment and bill the employer for that amount. The bill
3shall specify the calculations used to determine the amount
4due. If the employer disputes the amount of the bill, it may,
5within 30 days after receipt of the bill, apply to the System
6in writing for a recalculation. The application must specify in
7detail the grounds of the dispute and, if the employer asserts
8that the calculation is subject to subsection (g) or (h) of
9this Section, must include an affidavit setting forth and
10attesting to all facts within the employer's knowledge that are
11pertinent to the applicability of that subsection. Upon
12receiving a timely application for recalculation, the System
13shall review the application and, if appropriate, recalculate
14the amount due.
15    The employer contributions required under this subsection
16(f) may be paid in the form of a lump sum within 90 days after
17receipt of the bill. If the employer contributions are not paid
18within 90 days after receipt of the bill, then interest will be
19charged at a rate equal to the System's annual actuarially
20assumed rate of return on investment compounded annually from
21the 91st day after receipt of the bill. Payments must be
22concluded within 3 years after the employer's receipt of the
23bill.
24    (g) This subsection (g) applies only to payments made or
25salary increases given on or after June 1, 2005 but before July
261, 2011. The changes made by Public Act 94-1057 shall not

 

 

10000SB0001sam002- 30 -LRB100 06371 NHT 24463 a

1require the System to refund any payments received before July
231, 2006 (the effective date of Public Act 94-1057).
3    When assessing payment for any amount due under subsection
4(f), the System shall exclude salary increases paid to teachers
5under contracts or collective bargaining agreements entered
6into, amended, or renewed before June 1, 2005.
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude salary increases paid to a
9teacher at a time when the teacher is 10 or more years from
10retirement eligibility under Section 16-132 or 16-133.2.
11    When assessing payment for any amount due under subsection
12(f), the System shall exclude salary increases resulting from
13overload work, including summer school, when the school
14district has certified to the System, and the System has
15approved the certification, that (i) the overload work is for
16the sole purpose of classroom instruction in excess of the
17standard number of classes for a full-time teacher in a school
18district during a school year and (ii) the salary increases are
19equal to or less than the rate of pay for classroom instruction
20computed on the teacher's current salary and work schedule.
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude a salary increase resulting from
23a promotion (i) for which the employee is required to hold a
24certificate or supervisory endorsement issued by the State
25Teacher Certification Board that is a different certification
26or supervisory endorsement than is required for the teacher's

 

 

10000SB0001sam002- 31 -LRB100 06371 NHT 24463 a

1previous position and (ii) to a position that has existed and
2been filled by a member for no less than one complete academic
3year and the salary increase from the promotion is an increase
4that results in an amount no greater than the lesser of the
5average salary paid for other similar positions in the district
6requiring the same certification or the amount stipulated in
7the collective bargaining agreement for a similar position
8requiring the same certification.
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude any payment to the teacher from
11the State of Illinois or the State Board of Education over
12which the employer does not have discretion, notwithstanding
13that the payment is included in the computation of final
14average salary.
15    (h) When assessing payment for any amount due under
16subsection (f), the System shall exclude any salary increase
17described in subsection (g) of this Section given on or after
18July 1, 2011 but before July 1, 2014 under a contract or
19collective bargaining agreement entered into, amended, or
20renewed on or after June 1, 2005 but before July 1, 2011.
21Notwithstanding any other provision of this Section, any
22payments made or salary increases given after June 30, 2014
23shall be used in assessing payment for any amount due under
24subsection (f) of this Section.
25    (i) The System shall prepare a report and file copies of
26the report with the Governor and the General Assembly by

 

 

10000SB0001sam002- 32 -LRB100 06371 NHT 24463 a

1January 1, 2007 that contains all of the following information:
2        (1) The number of recalculations required by the
3    changes made to this Section by Public Act 94-1057 for each
4    employer.
5        (2) The dollar amount by which each employer's
6    contribution to the System was changed due to
7    recalculations required by Public Act 94-1057.
8        (3) The total amount the System received from each
9    employer as a result of the changes made to this Section by
10    Public Act 94-4.
11        (4) The increase in the required State contribution
12    resulting from the changes made to this Section by Public
13    Act 94-1057.
14    (j) For purposes of determining the required State
15contribution to the System, the value of the System's assets
16shall be equal to the actuarial value of the System's assets,
17which shall be calculated as follows:
18    As of June 30, 2008, the actuarial value of the System's
19assets shall be equal to the market value of the assets as of
20that date. In determining the actuarial value of the System's
21assets for fiscal years after June 30, 2008, any actuarial
22gains or losses from investment return incurred in a fiscal
23year shall be recognized in equal annual amounts over the
245-year period following that fiscal year.
25    (k) For purposes of determining the required State
26contribution to the system for a particular year, the actuarial

 

 

10000SB0001sam002- 33 -LRB100 06371 NHT 24463 a

1value of assets shall be assumed to earn a rate of return equal
2to the system's actuarially assumed rate of return.
3(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
496-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
56-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
6    Section 20. The Innovation Development and Economy Act is
7amended by changing Section 33 as follows:
 
8    (50 ILCS 470/33)
9    Sec. 33. STAR Bonds School Improvement and Operations Trust
10Fund.
11    (a) The STAR Bonds School Improvement and Operations Trust
12Fund is created as a trust fund in the State treasury. Deposits
13into the Trust Fund shall be made as provided under this
14Section. Moneys in the Trust Fund shall be used by the
15Department of Revenue only for the purpose of making payments
16to school districts in educational service regions that include
17or are adjacent to the STAR bond district. Moneys in the Trust
18Fund are not subject to appropriation and shall be used solely
19as provided in this Section. All deposits into the Trust Fund
20shall be held in the Trust Fund by the State Treasurer as ex
21officio custodian separate and apart from all public moneys or
22funds of this State and shall be administered by the Department
23exclusively for the purposes set forth in this Section. All
24moneys in the Trust Fund shall be invested and reinvested by

 

 

10000SB0001sam002- 34 -LRB100 06371 NHT 24463 a

1the State Treasurer. All interest accruing from these
2investments shall be deposited in the Trust Fund.
3    (b) Upon approval of a STAR bond district, the political
4subdivision shall immediately transmit to the county clerk of
5the county in which the district is located a certified copy of
6the ordinance creating the district, a legal description of the
7district, a map of the district, identification of the year
8that the county clerk shall use for determining the total
9initial equalized assessed value of the district consistent
10with subsection (c), and a list of the parcel or tax
11identification number of each parcel of property included in
12the district.
13    (c) Upon approval of a STAR bond district, the county clerk
14immediately thereafter shall determine (i) the most recently
15ascertained equalized assessed value of each lot, block, tract,
16or parcel of real property within the STAR bond district, from
17which shall be deducted the homestead exemptions under Article
1815 of the Property Tax Code, which value shall be the initial
19equalized assessed value of each such piece of property, and
20(ii) the total equalized assessed value of all taxable real
21property within the district by adding together the most
22recently ascertained equalized assessed value of each taxable
23lot, block, tract, or parcel of real property within the
24district, from which shall be deducted the homestead exemptions
25under Article 15 of the Property Tax Code, and shall certify
26that amount as the total initial equalized assessed value of

 

 

10000SB0001sam002- 35 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 36 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 37 -LRB100 06371 NHT 24463 a

1of property taxes attributable to the increase in equalized
2assessed value within the STAR bond district from each taxing
3district as certified in subsection (f).
4    (h) The Department shall pay to the regional superintendent
5of schools whose educational service region includes Franklin
6and Williamson Counties, for each year for which money is
7remitted to the Department and paid into the STAR Bonds School
8Improvement and Operations Trust Fund, the money in the Fund as
9provided in this Section. The amount paid to each school
10district shall be allocated proportionately, based on each
11qualifying school district's fall enrollment for the
12then-current school year, such that the school district with
13the largest fall enrollment receives the largest proportionate
14share of money paid out of the Fund or by any other method or
15formula that the regional superintendent of schools deems fit,
16equitable, and in the public interest. The regional
17superintendent may allocate moneys to school districts that are
18outside of his or her educational service region or to other
19regional superintendents.
20    The Department shall determine the distributions under
21this Section using its best judgment and information. The
22Department shall be held harmless for the distributions made
23under this Section and all distributions shall be final.
24    (i) In any year that an assessment appeal is filed, the
25extension of taxes on any assessment so appealed shall not be
26delayed. In the case of an assessment that is altered, any

 

 

10000SB0001sam002- 38 -LRB100 06371 NHT 24463 a

1taxes extended upon the unauthorized assessment or part thereof
2shall be abated, or, if already paid, shall be refunded with
3interest as provided in Section 23-20 of the Property Tax Code.
4In the case of an assessment appeal, the county collector shall
5notify the Department that an assessment appeal has been filed
6and the amount of the tax that would have been deposited in the
7STAR Bonds School Improvement and Operations Trust Fund. The
8county collector shall hold that amount in a separate fund
9until the appeal process is final. After the appeal process is
10finalized, the county collector shall transmit to the
11Department the amount of tax that remains, if any, after all
12required refunds are made. The Department shall pay any amount
13deposited into the Trust Fund under this Section in the same
14proportion as determined for payments for that taxable year
15under subsection (h).
16    (j) In any year that ad valorem taxes are allocated to the
17STAR Bonds School Improvement and Operations Trust Fund, that
18allocation shall not reduce or otherwise impact the school aid
19provided to any school district under the general State school
20aid formula provided for in Section 18-8.05 of the School Code
21or the evidence-based funding formula provided for in Section
2218-8.15 of the School Code.
23(Source: P.A. 96-939, eff. 6-24-10.)
 
24    Section 25. The County Economic Development Project Area
25Property Tax Allocation Act is amended by changing Section 7 as

 

 

10000SB0001sam002- 39 -LRB100 06371 NHT 24463 a

1follows:
 
2    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
3    Sec. 7. Creation of special tax allocation fund. If a
4county has adopted property tax allocation financing by
5ordinance for an economic development project area, the
6Department has approved and certified the economic development
7project area, and the county clerk has thereafter certified the
8"total initial equalized value" of the taxable real property
9within such economic development project area in the manner
10provided in subsection (b) of Section 6 of this Act, each year
11after the date of the certification by the county clerk of the
12"initial equalized assessed value" until economic development
13project costs and all county obligations financing economic
14development project costs have been paid, the ad valorem taxes,
15if any, arising from the levies upon the taxable real property
16in the economic development project area by taxing districts
17and tax rates determined in the manner provided in subsection
18(b) of Section 6 of this Act shall be divided as follows:
19        (1) That portion of the taxes levied upon each taxable
20    lot, block, tract or parcel of real property which is
21    attributable to the lower of the current equalized assessed
22    value or the initial equalized assessed value of each such
23    taxable lot, block, tract, or parcel of real property
24    existing at the time property tax allocation financing was
25    adopted shall be allocated and when collected shall be paid

 

 

10000SB0001sam002- 40 -LRB100 06371 NHT 24463 a

1    by the county collector to the respective affected taxing
2    districts in the manner required by the law in the absence
3    of the adoption of property tax allocation financing.
4        (2) That portion, if any, of those taxes which is
5    attributable to the increase in the current equalized
6    assessed valuation of each taxable lot, block, tract, or
7    parcel of real property in the economic development project
8    are, over and above the initial equalized assessed value of
9    each property existing at the time property tax allocation
10    financing was adopted shall be allocated to and when
11    collected shall be paid to the county treasurer, who shall
12    deposit those taxes into a special fund called the special
13    tax allocation fund of the county for the purpose of paying
14    economic development project costs and obligations
15    incurred in the payment thereof.
16    The county, by an ordinance adopting property tax
17allocation financing, may pledge the funds in and to be
18deposited in the special tax allocation fund for the payment of
19obligations issued under this Act and for the payment of
20economic development project costs. No part of the current
21equalized assessed valuation of each property in the economic
22development project area attributable to any increase above the
23total initial equalized assessed value of such properties shall
24be used in calculating the general State school aid formula,
25provided for in Section 18-8 of the School Code, or the
26evidence-based funding formula, provided for in Section

 

 

10000SB0001sam002- 41 -LRB100 06371 NHT 24463 a

118-8.15 of the School Code, until such time as all economic
2development projects costs have been paid as provided for in
3this Section.
4    Whenever a county issues bonds for the purpose of financing
5economic development project costs, the county may provide by
6ordinance for the appointment of a trustee, which may be any
7trust company within the State, and for the establishment of
8the funds or accounts to be maintained by such trustee as the
9county shall deem necessary to provide for the security and
10payment of the bonds. If the county provides for the
11appointment of a trustee, the trustee shall be considered the
12assignee of any payments assigned by the county pursuant to the
13ordinance and this Section. Any amounts paid to the trustee as
14assignee shall be deposited in the funds or accounts
15established pursuant to the trust agreement, and shall be held
16by the trustee in trust for the benefit of the holders of the
17bonds, and the holders shall have a lien on and a security
18interest in those bonds or accounts so long as the bonds remain
19outstanding and unpaid. Upon retirement of the bonds, the
20trustee shall pay over any excess amounts held to the county
21for deposit in the special tax allocation fund.
22    When the economic development project costs, including
23without limitation all county obligations financing economic
24development project costs incurred under this Act, have been
25paid, all surplus funds then remaining in the special tax
26allocation funds shall be distributed by being paid by the

 

 

10000SB0001sam002- 42 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 43 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 44 -LRB100 06371 NHT 24463 a

1    Sec. 50. Special tax allocation fund.
2    (a) If a county clerk has certified the "total initial
3equalized assessed value" of the taxable real property within
4an economic development project area in the manner provided in
5Section 45, each year after the date of the certification by
6the county clerk of the "total initial equalized assessed
7value", until economic development project costs and all county
8obligations financing economic development project costs have
9been paid, the ad valorem taxes, if any, arising from the
10levies upon the taxable real property in the economic
11development project area by taxing districts and tax rates
12determined in the manner provided in subsection (b) of Section
1345 shall be divided as follows:
14        (1) That portion of the taxes levied upon each taxable
15    lot, block, tract, or parcel of real property that is
16    attributable to the lower of the current equalized assessed
17    value or the initial equalized assessed value of each
18    taxable lot, block, tract, or parcel of real property
19    existing at the time tax increment financing was adopted
20    shall be allocated to (and when collected shall be paid by
21    the county collector to) the respective affected taxing
22    districts in the manner required by law in the absence of
23    the adoption of tax increment allocation financing.
24        (2) That portion, if any, of the taxes that is
25    attributable to the increase in the current equalized
26    assessed valuation of each taxable lot, block, tract, or

 

 

10000SB0001sam002- 45 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 46 -LRB100 06371 NHT 24463 a

1special tax allocation fund shall be distributed by being paid
2by the county treasurer to the county collector, who shall
3immediately pay the monies to the taxing districts having
4taxable property in the economic development project area in
5the same manner and proportion as the most recent distribution
6by the county collector to those taxing districts of real
7property taxes from real property in the economic development
8project area.
9    (d) Upon the payment of all economic development project
10costs, retirement of obligations, and distribution of any
11excess monies under this Section, the county shall adopt an
12ordinance dissolving the special tax allocation fund for the
13economic development project area and terminating the
14designation of the economic development project area as an
15economic development project area. Thereafter, the rates of the
16taxing districts shall be extended and taxes shall be levied,
17collected, and distributed in the manner applicable in the
18absence of the adoption of tax increment allocation financing.
19    (e) Nothing in this Section shall be construed as relieving
20property in the economic development project areas from being
21assessed as provided in the Property Tax Code or as relieving
22owners of that property from paying a uniform rate of taxes as
23required by Section 4 of Article IX of the Illinois
24Constitution.
25(Source: P.A. 98-463, eff. 8-16-13.)
 

 

 

10000SB0001sam002- 47 -LRB100 06371 NHT 24463 a

1    Section 35. The Illinois Municipal Code is amended by
2changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
3follows:
 
4    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
5    Sec. 11-74.4-3. Definitions. The following terms, wherever
6used or referred to in this Division 74.4 shall have the
7following respective meanings, unless in any case a different
8meaning clearly appears from the context.
9    (a) For any redevelopment project area that has been
10designated pursuant to this Section by an ordinance adopted
11prior to November 1, 1999 (the effective date of Public Act
1291-478), "blighted area" shall have the meaning set forth in
13this Section prior to that date.
14    On and after November 1, 1999, "blighted area" means any
15improved or vacant area within the boundaries of a
16redevelopment project area located within the territorial
17limits of the municipality where:
18        (1) If improved, industrial, commercial, and
19    residential buildings or improvements are detrimental to
20    the public safety, health, or welfare because of a
21    combination of 5 or more of the following factors, each of
22    which is (i) present, with that presence documented, to a
23    meaningful extent so that a municipality may reasonably
24    find that the factor is clearly present within the intent
25    of the Act and (ii) reasonably distributed throughout the

 

 

10000SB0001sam002- 48 -LRB100 06371 NHT 24463 a

1    improved part of the redevelopment project area:
2            (A) Dilapidation. An advanced state of disrepair
3        or neglect of necessary repairs to the primary
4        structural components of buildings or improvements in
5        such a combination that a documented building
6        condition analysis determines that major repair is
7        required or the defects are so serious and so extensive
8        that the buildings must be removed.
9            (B) Obsolescence. The condition or process of
10        falling into disuse. Structures have become ill-suited
11        for the original use.
12            (C) Deterioration. With respect to buildings,
13        defects including, but not limited to, major defects in
14        the secondary building components such as doors,
15        windows, porches, gutters and downspouts, and fascia.
16        With respect to surface improvements, that the
17        condition of roadways, alleys, curbs, gutters,
18        sidewalks, off-street parking, and surface storage
19        areas evidence deterioration, including, but not
20        limited to, surface cracking, crumbling, potholes,
21        depressions, loose paving material, and weeds
22        protruding through paved surfaces.
23            (D) Presence of structures below minimum code
24        standards. All structures that do not meet the
25        standards of zoning, subdivision, building, fire, and
26        other governmental codes applicable to property, but

 

 

10000SB0001sam002- 49 -LRB100 06371 NHT 24463 a

1        not including housing and property maintenance codes.
2            (E) Illegal use of individual structures. The use
3        of structures in violation of applicable federal,
4        State, or local laws, exclusive of those applicable to
5        the presence of structures below minimum code
6        standards.
7            (F) Excessive vacancies. The presence of buildings
8        that are unoccupied or under-utilized and that
9        represent an adverse influence on the area because of
10        the frequency, extent, or duration of the vacancies.
11            (G) Lack of ventilation, light, or sanitary
12        facilities. The absence of adequate ventilation for
13        light or air circulation in spaces or rooms without
14        windows, or that require the removal of dust, odor,
15        gas, smoke, or other noxious airborne materials.
16        Inadequate natural light and ventilation means the
17        absence of skylights or windows for interior spaces or
18        rooms and improper window sizes and amounts by room
19        area to window area ratios. Inadequate sanitary
20        facilities refers to the absence or inadequacy of
21        garbage storage and enclosure, bathroom facilities,
22        hot water and kitchens, and structural inadequacies
23        preventing ingress and egress to and from all rooms and
24        units within a building.
25            (H) Inadequate utilities. Underground and overhead
26        utilities such as storm sewers and storm drainage,

 

 

10000SB0001sam002- 50 -LRB100 06371 NHT 24463 a

1        sanitary sewers, water lines, and gas, telephone, and
2        electrical services that are shown to be inadequate.
3        Inadequate utilities are those that are: (i) of
4        insufficient capacity to serve the uses in the
5        redevelopment project area, (ii) deteriorated,
6        antiquated, obsolete, or in disrepair, or (iii)
7        lacking within the redevelopment project area.
8            (I) Excessive land coverage and overcrowding of
9        structures and community facilities. The
10        over-intensive use of property and the crowding of
11        buildings and accessory facilities onto a site.
12        Examples of problem conditions warranting the
13        designation of an area as one exhibiting excessive land
14        coverage are: (i) the presence of buildings either
15        improperly situated on parcels or located on parcels of
16        inadequate size and shape in relation to present-day
17        standards of development for health and safety and (ii)
18        the presence of multiple buildings on a single parcel.
19        For there to be a finding of excessive land coverage,
20        these parcels must exhibit one or more of the following
21        conditions: insufficient provision for light and air
22        within or around buildings, increased threat of spread
23        of fire due to the close proximity of buildings, lack
24        of adequate or proper access to a public right-of-way,
25        lack of reasonably required off-street parking, or
26        inadequate provision for loading and service.

 

 

10000SB0001sam002- 51 -LRB100 06371 NHT 24463 a

1            (J) Deleterious land use or layout. The existence
2        of incompatible land-use relationships, buildings
3        occupied by inappropriate mixed-uses, or uses
4        considered to be noxious, offensive, or unsuitable for
5        the surrounding area.
6            (K) Environmental clean-up. The proposed
7        redevelopment project area has incurred Illinois
8        Environmental Protection Agency or United States
9        Environmental Protection Agency remediation costs for,
10        or a study conducted by an independent consultant
11        recognized as having expertise in environmental
12        remediation has determined a need for, the clean-up of
13        hazardous waste, hazardous substances, or underground
14        storage tanks required by State or federal law,
15        provided that the remediation costs constitute a
16        material impediment to the development or
17        redevelopment of the redevelopment project area.
18            (L) Lack of community planning. The proposed
19        redevelopment project area was developed prior to or
20        without the benefit or guidance of a community plan.
21        This means that the development occurred prior to the
22        adoption by the municipality of a comprehensive or
23        other community plan or that the plan was not followed
24        at the time of the area's development. This factor must
25        be documented by evidence of adverse or incompatible
26        land-use relationships, inadequate street layout,

 

 

10000SB0001sam002- 52 -LRB100 06371 NHT 24463 a

1        improper subdivision, parcels of inadequate shape and
2        size to meet contemporary development standards, or
3        other evidence demonstrating an absence of effective
4        community planning.
5            (M) The total equalized assessed value of the
6        proposed redevelopment project area has declined for 3
7        of the last 5 calendar years prior to the year in which
8        the redevelopment project area is designated or is
9        increasing at an annual rate that is less than the
10        balance of the municipality for 3 of the last 5
11        calendar years for which information is available or is
12        increasing at an annual rate that is less than the
13        Consumer Price Index for All Urban Consumers published
14        by the United States Department of Labor or successor
15        agency for 3 of the last 5 calendar years prior to the
16        year in which the redevelopment project area is
17        designated.
18        (2) If vacant, the sound growth of the redevelopment
19    project area is impaired by a combination of 2 or more of
20    the following factors, each of which is (i) present, with
21    that presence documented, to a meaningful extent so that a
22    municipality may reasonably find that the factor is clearly
23    present within the intent of the Act and (ii) reasonably
24    distributed throughout the vacant part of the
25    redevelopment project area to which it pertains:
26            (A) Obsolete platting of vacant land that results

 

 

10000SB0001sam002- 53 -LRB100 06371 NHT 24463 a

1        in parcels of limited or narrow size or configurations
2        of parcels of irregular size or shape that would be
3        difficult to develop on a planned basis and in a manner
4        compatible with contemporary standards and
5        requirements, or platting that failed to create
6        rights-of-ways for streets or alleys or that created
7        inadequate right-of-way widths for streets, alleys, or
8        other public rights-of-way or that omitted easements
9        for public utilities.
10            (B) Diversity of ownership of parcels of vacant
11        land sufficient in number to retard or impede the
12        ability to assemble the land for development.
13            (C) Tax and special assessment delinquencies exist
14        or the property has been the subject of tax sales under
15        the Property Tax Code within the last 5 years.
16            (D) Deterioration of structures or site
17        improvements in neighboring areas adjacent to the
18        vacant land.
19            (E) The area has incurred Illinois Environmental
20        Protection Agency or United States Environmental
21        Protection Agency remediation costs for, or a study
22        conducted by an independent consultant recognized as
23        having expertise in environmental remediation has
24        determined a need for, the clean-up of hazardous waste,
25        hazardous substances, or underground storage tanks
26        required by State or federal law, provided that the

 

 

10000SB0001sam002- 54 -LRB100 06371 NHT 24463 a

1        remediation costs constitute a material impediment to
2        the development or redevelopment of the redevelopment
3        project area.
4            (F) The total equalized assessed value of the
5        proposed redevelopment project area has declined for 3
6        of the last 5 calendar years prior to the year in which
7        the redevelopment project area is designated or is
8        increasing at an annual rate that is less than the
9        balance of the municipality for 3 of the last 5
10        calendar years for which information is available or is
11        increasing at an annual rate that is less than the
12        Consumer Price Index for All Urban Consumers published
13        by the United States Department of Labor or successor
14        agency for 3 of the last 5 calendar years prior to the
15        year in which the redevelopment project area is
16        designated.
17        (3) If vacant, the sound growth of the redevelopment
18    project area is impaired by one of the following factors
19    that (i) is present, with that presence documented, to a
20    meaningful extent so that a municipality may reasonably
21    find that the factor is clearly present within the intent
22    of the Act and (ii) is reasonably distributed throughout
23    the vacant part of the redevelopment project area to which
24    it pertains:
25            (A) The area consists of one or more unused
26        quarries, mines, or strip mine ponds.

 

 

10000SB0001sam002- 55 -LRB100 06371 NHT 24463 a

1            (B) The area consists of unused rail yards, rail
2        tracks, or railroad rights-of-way.
3            (C) The area, prior to its designation, is subject
4        to (i) chronic flooding that adversely impacts on real
5        property in the area as certified by a registered
6        professional engineer or appropriate regulatory agency
7        or (ii) surface water that discharges from all or a
8        part of the area and contributes to flooding within the
9        same watershed, but only if the redevelopment project
10        provides for facilities or improvements to contribute
11        to the alleviation of all or part of the flooding.
12            (D) The area consists of an unused or illegal
13        disposal site containing earth, stone, building
14        debris, or similar materials that were removed from
15        construction, demolition, excavation, or dredge sites.
16            (E) Prior to November 1, 1999, the area is not less
17        than 50 nor more than 100 acres and 75% of which is
18        vacant (notwithstanding that the area has been used for
19        commercial agricultural purposes within 5 years prior
20        to the designation of the redevelopment project area),
21        and the area meets at least one of the factors itemized
22        in paragraph (1) of this subsection, the area has been
23        designated as a town or village center by ordinance or
24        comprehensive plan adopted prior to January 1, 1982,
25        and the area has not been developed for that designated
26        purpose.

 

 

10000SB0001sam002- 56 -LRB100 06371 NHT 24463 a

1            (F) The area qualified as a blighted improved area
2        immediately prior to becoming vacant, unless there has
3        been substantial private investment in the immediately
4        surrounding area.
5    (b) For any redevelopment project area that has been
6designated pursuant to this Section by an ordinance adopted
7prior to November 1, 1999 (the effective date of Public Act
891-478), "conservation area" shall have the meaning set forth
9in this Section prior to that date.
10    On and after November 1, 1999, "conservation area" means
11any improved area within the boundaries of a redevelopment
12project area located within the territorial limits of the
13municipality in which 50% or more of the structures in the area
14have an age of 35 years or more. Such an area is not yet a
15blighted area but because of a combination of 3 or more of the
16following factors is detrimental to the public safety, health,
17morals or welfare and such an area may become a blighted area:
18        (1) Dilapidation. An advanced state of disrepair or
19    neglect of necessary repairs to the primary structural
20    components of buildings or improvements in such a
21    combination that a documented building condition analysis
22    determines that major repair is required or the defects are
23    so serious and so extensive that the buildings must be
24    removed.
25        (2) Obsolescence. The condition or process of falling
26    into disuse. Structures have become ill-suited for the

 

 

10000SB0001sam002- 57 -LRB100 06371 NHT 24463 a

1    original use.
2        (3) Deterioration. With respect to buildings, defects
3    including, but not limited to, major defects in the
4    secondary building components such as doors, windows,
5    porches, gutters and downspouts, and fascia. With respect
6    to surface improvements, that the condition of roadways,
7    alleys, curbs, gutters, sidewalks, off-street parking, and
8    surface storage areas evidence deterioration, including,
9    but not limited to, surface cracking, crumbling, potholes,
10    depressions, loose paving material, and weeds protruding
11    through paved surfaces.
12        (4) Presence of structures below minimum code
13    standards. All structures that do not meet the standards of
14    zoning, subdivision, building, fire, and other
15    governmental codes applicable to property, but not
16    including housing and property maintenance codes.
17        (5) Illegal use of individual structures. The use of
18    structures in violation of applicable federal, State, or
19    local laws, exclusive of those applicable to the presence
20    of structures below minimum code standards.
21        (6) Excessive vacancies. The presence of buildings
22    that are unoccupied or under-utilized and that represent an
23    adverse influence on the area because of the frequency,
24    extent, or duration of the vacancies.
25        (7) Lack of ventilation, light, or sanitary
26    facilities. The absence of adequate ventilation for light

 

 

10000SB0001sam002- 58 -LRB100 06371 NHT 24463 a

1    or air circulation in spaces or rooms without windows, or
2    that require the removal of dust, odor, gas, smoke, or
3    other noxious airborne materials. Inadequate natural light
4    and ventilation means the absence or inadequacy of
5    skylights or windows for interior spaces or rooms and
6    improper window sizes and amounts by room area to window
7    area ratios. Inadequate sanitary facilities refers to the
8    absence or inadequacy of garbage storage and enclosure,
9    bathroom facilities, hot water and kitchens, and
10    structural inadequacies preventing ingress and egress to
11    and from all rooms and units within a building.
12        (8) Inadequate utilities. Underground and overhead
13    utilities such as storm sewers and storm drainage, sanitary
14    sewers, water lines, and gas, telephone, and electrical
15    services that are shown to be inadequate. Inadequate
16    utilities are those that are: (i) of insufficient capacity
17    to serve the uses in the redevelopment project area, (ii)
18    deteriorated, antiquated, obsolete, or in disrepair, or
19    (iii) lacking within the redevelopment project area.
20        (9) Excessive land coverage and overcrowding of
21    structures and community facilities. The over-intensive
22    use of property and the crowding of buildings and accessory
23    facilities onto a site. Examples of problem conditions
24    warranting the designation of an area as one exhibiting
25    excessive land coverage are: the presence of buildings
26    either improperly situated on parcels or located on parcels

 

 

10000SB0001sam002- 59 -LRB100 06371 NHT 24463 a

1    of inadequate size and shape in relation to present-day
2    standards of development for health and safety and the
3    presence of multiple buildings on a single parcel. For
4    there to be a finding of excessive land coverage, these
5    parcels must exhibit one or more of the following
6    conditions: insufficient provision for light and air
7    within or around buildings, increased threat of spread of
8    fire due to the close proximity of buildings, lack of
9    adequate or proper access to a public right-of-way, lack of
10    reasonably required off-street parking, or inadequate
11    provision for loading and service.
12        (10) Deleterious land use or layout. The existence of
13    incompatible land-use relationships, buildings occupied by
14    inappropriate mixed-uses, or uses considered to be
15    noxious, offensive, or unsuitable for the surrounding
16    area.
17        (11) Lack of community planning. The proposed
18    redevelopment project area was developed prior to or
19    without the benefit or guidance of a community plan. This
20    means that the development occurred prior to the adoption
21    by the municipality of a comprehensive or other community
22    plan or that the plan was not followed at the time of the
23    area's development. This factor must be documented by
24    evidence of adverse or incompatible land-use
25    relationships, inadequate street layout, improper
26    subdivision, parcels of inadequate shape and size to meet

 

 

10000SB0001sam002- 60 -LRB100 06371 NHT 24463 a

1    contemporary development standards, or other evidence
2    demonstrating an absence of effective community planning.
3        (12) The area has incurred Illinois Environmental
4    Protection Agency or United States Environmental
5    Protection Agency remediation costs for, or a study
6    conducted by an independent consultant recognized as
7    having expertise in environmental remediation has
8    determined a need for, the clean-up of hazardous waste,
9    hazardous substances, or underground storage tanks
10    required by State or federal law, provided that the
11    remediation costs constitute a material impediment to the
12    development or redevelopment of the redevelopment project
13    area.
14        (13) The total equalized assessed value of the proposed
15    redevelopment project area has declined for 3 of the last 5
16    calendar years for which information is available or is
17    increasing at an annual rate that is less than the balance
18    of the municipality for 3 of the last 5 calendar years for
19    which information is available or is increasing at an
20    annual rate that is less than the Consumer Price Index for
21    All Urban Consumers published by the United States
22    Department of Labor or successor agency for 3 of the last 5
23    calendar years for which information is available.
24    (c) "Industrial park" means an area in a blighted or
25conservation area suitable for use by any manufacturing,
26industrial, research or transportation enterprise, of

 

 

10000SB0001sam002- 61 -LRB100 06371 NHT 24463 a

1facilities to include but not be limited to factories, mills,
2processing plants, assembly plants, packing plants,
3fabricating plants, industrial distribution centers,
4warehouses, repair overhaul or service facilities, freight
5terminals, research facilities, test facilities or railroad
6facilities.
7    (d) "Industrial park conservation area" means an area
8within the boundaries of a redevelopment project area located
9within the territorial limits of a municipality that is a labor
10surplus municipality or within 1 1/2 miles of the territorial
11limits of a municipality that is a labor surplus municipality
12if the area is annexed to the municipality; which area is zoned
13as industrial no later than at the time the municipality by
14ordinance designates the redevelopment project area, and which
15area includes both vacant land suitable for use as an
16industrial park and a blighted area or conservation area
17contiguous to such vacant land.
18    (e) "Labor surplus municipality" means a municipality in
19which, at any time during the 6 months before the municipality
20by ordinance designates an industrial park conservation area,
21the unemployment rate was over 6% and was also 100% or more of
22the national average unemployment rate for that same time as
23published in the United States Department of Labor Bureau of
24Labor Statistics publication entitled "The Employment
25Situation" or its successor publication. For the purpose of
26this subsection, if unemployment rate statistics for the

 

 

10000SB0001sam002- 62 -LRB100 06371 NHT 24463 a

1municipality are not available, the unemployment rate in the
2municipality shall be deemed to be the same as the unemployment
3rate in the principal county in which the municipality is
4located.
5    (f) "Municipality" shall mean a city, village,
6incorporated town, or a township that is located in the
7unincorporated portion of a county with 3 million or more
8inhabitants, if the county adopted an ordinance that approved
9the township's redevelopment plan.
10    (g) "Initial Sales Tax Amounts" means the amount of taxes
11paid under the Retailers' Occupation Tax Act, Use Tax Act,
12Service 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 in a State Sales Tax Boundary
16during the calendar year 1985.
17    (g-1) "Revised Initial Sales Tax Amounts" means the amount
18of taxes paid under the Retailers' Occupation Tax Act, Use Tax
19Act, Service Use Tax Act, the Service Occupation Tax Act, the
20Municipal Retailers' Occupation Tax Act, and the Municipal
21Service Occupation Tax Act by retailers and servicemen on
22transactions at places located within the State Sales Tax
23Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
24    (h) "Municipal Sales Tax Increment" means an amount equal
25to the increase in the aggregate amount of taxes paid to a
26municipality from the Local Government Tax Fund arising from

 

 

10000SB0001sam002- 63 -LRB100 06371 NHT 24463 a

1sales by retailers and servicemen within the redevelopment
2project area or State Sales Tax Boundary, as the case may be,
3for as long as the redevelopment project area or State Sales
4Tax Boundary, as the case may be, exist over and above the
5aggregate amount of taxes as certified by the Illinois
6Department of Revenue and paid under the Municipal Retailers'
7Occupation Tax Act and the Municipal Service Occupation Tax Act
8by retailers and servicemen, on transactions at places of
9business located in the redevelopment project area or State
10Sales Tax Boundary, as the case may be, during the base year
11which shall be the calendar year immediately prior to the year
12in which the municipality adopted tax increment allocation
13financing. For purposes of computing the aggregate amount of
14such taxes for base years occurring prior to 1985, the
15Department of Revenue shall determine the Initial Sales Tax
16Amounts for such taxes and deduct therefrom an amount equal to
174% of the aggregate amount of taxes per year for each year the
18base year is prior to 1985, but not to exceed a total deduction
19of 12%. The amount so determined shall be known as the
20"Adjusted Initial Sales Tax Amounts". For purposes of
21determining the Municipal Sales Tax Increment, the Department
22of Revenue shall for each period subtract from the amount paid
23to the municipality from the Local Government Tax Fund arising
24from sales by retailers and servicemen on transactions located
25in the redevelopment project area or the State Sales Tax
26Boundary, as the case may be, the certified Initial Sales Tax

 

 

10000SB0001sam002- 64 -LRB100 06371 NHT 24463 a

1Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
2Initial Sales Tax Amounts for the Municipal Retailers'
3Occupation Tax Act and the Municipal Service Occupation Tax
4Act. For the State Fiscal Year 1989, this calculation shall be
5made by utilizing the calendar year 1987 to determine the tax
6amounts received. For the State Fiscal Year 1990, this
7calculation shall be made by utilizing the period from January
81, 1988, until September 30, 1988, to determine the tax amounts
9received from retailers and servicemen pursuant to the
10Municipal Retailers' Occupation Tax and the Municipal Service
11Occupation Tax Act, which shall have deducted therefrom
12nine-twelfths of the certified Initial Sales Tax Amounts, the
13Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
14Tax Amounts as appropriate. For the State Fiscal Year 1991,
15this calculation shall be made by utilizing the period from
16October 1, 1988, to June 30, 1989, to determine the tax amounts
17received from retailers and servicemen pursuant to the
18Municipal Retailers' Occupation Tax and the Municipal Service
19Occupation Tax Act which shall have deducted therefrom
20nine-twelfths of the certified Initial Sales Tax Amounts,
21Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
22Tax Amounts as appropriate. For every State Fiscal Year
23thereafter, the applicable period shall be the 12 months
24beginning July 1 and ending June 30 to determine the tax
25amounts received which shall have deducted therefrom the
26certified Initial Sales Tax Amounts, the Adjusted Initial Sales

 

 

10000SB0001sam002- 65 -LRB100 06371 NHT 24463 a

1Tax Amounts or the Revised Initial Sales Tax Amounts, as the
2case may be.
3    (i) "Net State Sales Tax Increment" means the sum of the
4following: (a) 80% of the first $100,000 of State Sales Tax
5Increment annually generated within a State Sales Tax Boundary;
6(b) 60% of the amount in excess of $100,000 but not exceeding
7$500,000 of State Sales Tax Increment annually generated within
8a State Sales Tax Boundary; and (c) 40% of all amounts in
9excess of $500,000 of State Sales Tax Increment annually
10generated within a State Sales Tax Boundary. If, however, a
11municipality established a tax increment financing district in
12a county with a population in excess of 3,000,000 before
13January 1, 1986, and the municipality entered into a contract
14or issued bonds after January 1, 1986, but before December 31,
151986, to finance redevelopment project costs within a State
16Sales Tax Boundary, then the Net State Sales Tax Increment
17means, for the fiscal years beginning July 1, 1990, and July 1,
181991, 100% of the State Sales Tax Increment annually generated
19within a State Sales Tax Boundary; and notwithstanding any
20other provision of this Act, for those fiscal years the
21Department of Revenue shall distribute to those municipalities
22100% of their Net State Sales Tax Increment before any
23distribution to any other municipality and regardless of
24whether or not those other municipalities will receive 100% of
25their Net State Sales Tax Increment. For Fiscal Year 1999, and
26every year thereafter until the year 2007, for any municipality

 

 

10000SB0001sam002- 66 -LRB100 06371 NHT 24463 a

1that has not entered into a contract or has not issued bonds
2prior to June 1, 1988 to finance redevelopment project costs
3within a State Sales Tax Boundary, the Net State Sales Tax
4Increment shall be calculated as follows: By multiplying the
5Net State Sales Tax Increment by 90% in the State Fiscal Year
61999; 80% in the State Fiscal Year 2000; 70% in the State
7Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
8State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
9in the State Fiscal Year 2005; 20% in the State Fiscal Year
102006; and 10% in the State Fiscal Year 2007. No payment shall
11be made for State Fiscal Year 2008 and thereafter.
12    Municipalities that issued bonds in connection with a
13redevelopment project in a redevelopment project area within
14the State Sales Tax Boundary prior to July 29, 1991, or that
15entered into contracts in connection with a redevelopment
16project in a redevelopment project area before June 1, 1988,
17shall continue to receive their proportional share of the
18Illinois Tax Increment Fund distribution until the date on
19which the redevelopment project is completed or terminated. If,
20however, a municipality that issued bonds in connection with a
21redevelopment project in a redevelopment project area within
22the State Sales Tax Boundary prior to July 29, 1991 retires the
23bonds prior to June 30, 2007 or a municipality that entered
24into contracts in connection with a redevelopment project in a
25redevelopment project area before June 1, 1988 completes the
26contracts prior to June 30, 2007, then so long as the

 

 

10000SB0001sam002- 67 -LRB100 06371 NHT 24463 a

1redevelopment project is not completed or is not terminated,
2the Net State Sales Tax Increment shall be calculated,
3beginning on the date on which the bonds are retired or the
4contracts are completed, as follows: By multiplying the Net
5State Sales Tax Increment by 60% in the State Fiscal Year 2002;
650% in the State Fiscal Year 2003; 40% in the State Fiscal Year
72004; 30% in the State Fiscal Year 2005; 20% in the State
8Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
9payment shall be made for State Fiscal Year 2008 and
10thereafter. Refunding of any bonds issued prior to July 29,
111991, shall not alter the Net State Sales Tax Increment.
12    (j) "State Utility Tax Increment Amount" means an amount
13equal to the aggregate increase in State electric and gas tax
14charges imposed on owners and tenants, other than residential
15customers, of properties located within the redevelopment
16project area under Section 9-222 of the Public Utilities Act,
17over and above the aggregate of such charges as certified by
18the Department of Revenue and paid by owners and tenants, other
19than residential customers, of properties within the
20redevelopment project area during the base year, which shall be
21the calendar year immediately prior to the year of the adoption
22of the ordinance authorizing tax increment allocation
23financing.
24    (k) "Net State Utility Tax Increment" means the sum of the
25following: (a) 80% of the first $100,000 of State Utility Tax
26Increment annually generated by a redevelopment project area;

 

 

10000SB0001sam002- 68 -LRB100 06371 NHT 24463 a

1(b) 60% of the amount in excess of $100,000 but not exceeding
2$500,000 of the State Utility Tax Increment annually generated
3by a redevelopment project area; and (c) 40% of all amounts in
4excess of $500,000 of State Utility Tax Increment annually
5generated by a redevelopment project area. For the State Fiscal
6Year 1999, and every year thereafter until the year 2007, for
7any municipality that has not entered into a contract or has
8not issued bonds prior to June 1, 1988 to finance redevelopment
9project costs within a redevelopment project area, the Net
10State Utility Tax Increment shall be calculated as follows: By
11multiplying the Net State Utility Tax Increment by 90% in the
12State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
13in the State Fiscal Year 2001; 60% in the State Fiscal Year
142002; 50% in the State Fiscal Year 2003; 40% in the State
15Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
16State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
17No payment shall be made for the State Fiscal Year 2008 and
18thereafter.
19    Municipalities that issue bonds in connection with the
20redevelopment project during the period from June 1, 1988 until
213 years after the effective date of this Amendatory Act of 1988
22shall receive the Net State Utility Tax Increment, subject to
23appropriation, for 15 State Fiscal Years after the issuance of
24such bonds. For the 16th through the 20th State Fiscal Years
25after issuance of the bonds, the Net State Utility Tax
26Increment shall be calculated as follows: By multiplying the

 

 

10000SB0001sam002- 69 -LRB100 06371 NHT 24463 a

1Net State Utility Tax Increment by 90% in year 16; 80% in year
217; 70% in year 18; 60% in year 19; and 50% in year 20.
3Refunding of any bonds issued prior to June 1, 1988, shall not
4alter the revised Net State Utility Tax Increment payments set
5forth above.
6    (l) "Obligations" mean bonds, loans, debentures, notes,
7special certificates or other evidence of indebtedness issued
8by the municipality to carry out a redevelopment project or to
9refund outstanding obligations.
10    (m) "Payment in lieu of taxes" means those estimated tax
11revenues from real property in a redevelopment project area
12derived from real property that has been acquired by a
13municipality which according to the redevelopment project or
14plan is to be used for a private use which taxing districts
15would have received had a municipality not acquired the real
16property and adopted tax increment allocation financing and
17which would result from levies made after the time of the
18adoption of tax increment allocation financing to the time the
19current equalized value of real property in the redevelopment
20project area exceeds the total initial equalized value of real
21property in said area.
22    (n) "Redevelopment plan" means the comprehensive program
23of the municipality for development or redevelopment intended
24by the payment of redevelopment project costs to reduce or
25eliminate those conditions the existence of which qualified the
26redevelopment project area as a "blighted area" or

 

 

10000SB0001sam002- 70 -LRB100 06371 NHT 24463 a

1"conservation area" or combination thereof or "industrial park
2conservation area," and thereby to enhance the tax bases of the
3taxing districts which extend into the redevelopment project
4area, provided that, with respect to redevelopment project
5areas described in subsections (p-1) and (p-2), "redevelopment
6plan" means the comprehensive program of the affected
7municipality for the development of qualifying transit
8facilities. On and after November 1, 1999 (the effective date
9of Public Act 91-478), no redevelopment plan may be approved or
10amended that includes the development of vacant land (i) with a
11golf course and related clubhouse and other facilities or (ii)
12designated by federal, State, county, or municipal government
13as public land for outdoor recreational activities or for
14nature preserves and used for that purpose within 5 years prior
15to the adoption of the redevelopment plan. For the purpose of
16this subsection, "recreational activities" is limited to mean
17camping and hunting. Each redevelopment plan shall set forth in
18writing the program to be undertaken to accomplish the
19objectives and shall include but not be limited to:
20        (A) an itemized list of estimated redevelopment
21    project costs;
22        (B) evidence indicating that the redevelopment project
23    area on the whole has not been subject to growth and
24    development through investment by private enterprise,
25    provided that such evidence shall not be required for any
26    redevelopment project area located within a transit

 

 

10000SB0001sam002- 71 -LRB100 06371 NHT 24463 a

1    facility improvement area established pursuant to Section
2    11-74.4-3.3;
3        (C) an assessment of any financial impact of the
4    redevelopment project area on or any increased demand for
5    services from any taxing district affected by the plan and
6    any program to address such financial impact or increased
7    demand;
8        (D) the sources of funds to pay costs;
9        (E) the nature and term of the obligations to be
10    issued;
11        (F) the most recent equalized assessed valuation of the
12    redevelopment project area;
13        (G) an estimate as to the equalized assessed valuation
14    after redevelopment and the general land uses to apply in
15    the redevelopment project area;
16        (H) a commitment to fair employment practices and an
17    affirmative action plan;
18        (I) if it concerns an industrial park conservation
19    area, the plan shall also include a general description of
20    any proposed developer, user and tenant of any property, a
21    description of the type, structure and general character of
22    the facilities to be developed, a description of the type,
23    class and number of new employees to be employed in the
24    operation of the facilities to be developed; and
25        (J) if property is to be annexed to the municipality,
26    the plan shall include the terms of the annexation

 

 

10000SB0001sam002- 72 -LRB100 06371 NHT 24463 a

1    agreement.
2    The provisions of items (B) and (C) of this subsection (n)
3shall not apply to a municipality that before March 14, 1994
4(the effective date of Public Act 88-537) had fixed, either by
5its corporate authorities or by a commission designated under
6subsection (k) of Section 11-74.4-4, a time and place for a
7public hearing as required by subsection (a) of Section
811-74.4-5. No redevelopment plan shall be adopted unless a
9municipality complies with all of the following requirements:
10        (1) The municipality finds that the redevelopment
11    project area on the whole has not been subject to growth
12    and development through investment by private enterprise
13    and would not reasonably be anticipated to be developed
14    without the adoption of the redevelopment plan, provided,
15    however, that such a finding shall not be required with
16    respect to any redevelopment project area located within a
17    transit facility improvement area established pursuant to
18    Section 11-74.4-3.3.
19        (2) The municipality finds that the redevelopment plan
20    and project conform to the comprehensive plan for the
21    development of the municipality as a whole, or, for
22    municipalities with a population of 100,000 or more,
23    regardless of when the redevelopment plan and project was
24    adopted, the redevelopment plan and project either: (i)
25    conforms to the strategic economic development or
26    redevelopment plan issued by the designated planning

 

 

10000SB0001sam002- 73 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 74 -LRB100 06371 NHT 24463 a

1    January 1, 1986, the municipality finds: (a) that the
2    redevelopment project area would not reasonably be
3    developed without the use of such incremental revenues, and
4    (b) that such incremental revenues will be exclusively
5    utilized for the development of the redevelopment project
6    area.
7        (5) If: (a) the redevelopment plan will not result in
8    displacement of residents from 10 or more inhabited
9    residential units, and the municipality certifies in the
10    plan that such displacement will not result from the plan;
11    or (b) the redevelopment plan is for a redevelopment
12    project area located within a transit facility improvement
13    area established pursuant to Section 11-74.4-3.3, and the
14    applicable project is subject to the process for evaluation
15    of environmental effects under the National Environmental
16    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
17    housing impact study need not be performed. If, however,
18    the redevelopment plan would result in the displacement of
19    residents from 10 or more inhabited residential units, or
20    if the redevelopment project area contains 75 or more
21    inhabited residential units and no certification is made,
22    then the municipality shall prepare, as part of the
23    separate feasibility report required by subsection (a) of
24    Section 11-74.4-5, a housing impact study.
25        Part I of the housing impact study shall include (i)
26    data as to whether the residential units are single family

 

 

10000SB0001sam002- 75 -LRB100 06371 NHT 24463 a

1    or multi-family units, (ii) the number and type of rooms
2    within the units, if that information is available, (iii)
3    whether the units are inhabited or uninhabited, as
4    determined not less than 45 days before the date that the
5    ordinance or resolution required by subsection (a) of
6    Section 11-74.4-5 is passed, and (iv) data as to the racial
7    and ethnic composition of the residents in the inhabited
8    residential units. The data requirement as to the racial
9    and ethnic composition of the residents in the inhabited
10    residential units shall be deemed to be fully satisfied by
11    data from the most recent federal census.
12        Part II of the housing impact study shall identify the
13    inhabited residential units in the proposed redevelopment
14    project area that are to be or may be removed. If inhabited
15    residential units are to be removed, then the housing
16    impact study shall identify (i) the number and location of
17    those units that will or may be removed, (ii) the
18    municipality's plans for relocation assistance for those
19    residents in the proposed redevelopment project area whose
20    residences are to be removed, (iii) the availability of
21    replacement housing for those residents whose residences
22    are to be removed, and shall identify the type, location,
23    and cost of the housing, and (iv) the type and extent of
24    relocation assistance to be provided.
25        (6) On and after November 1, 1999, the housing impact
26    study required by paragraph (5) shall be incorporated in

 

 

10000SB0001sam002- 76 -LRB100 06371 NHT 24463 a

1    the redevelopment plan for the redevelopment project area.
2        (7) On and after November 1, 1999, no redevelopment
3    plan shall be adopted, nor an existing plan amended, nor
4    shall residential housing that is occupied by households of
5    low-income and very low-income persons in currently
6    existing redevelopment project areas be removed after
7    November 1, 1999 unless the redevelopment plan provides,
8    with respect to inhabited housing units that are to be
9    removed for households of low-income and very low-income
10    persons, affordable housing and relocation assistance not
11    less than that which would be provided under the federal
12    Uniform Relocation Assistance and Real Property
13    Acquisition Policies Act of 1970 and the regulations under
14    that Act, including the eligibility criteria. Affordable
15    housing may be either existing or newly constructed
16    housing. For purposes of this paragraph (7), "low-income
17    households", "very low-income households", and "affordable
18    housing" have the meanings set forth in the Illinois
19    Affordable Housing Act. The municipality shall make a good
20    faith effort to ensure that this affordable housing is
21    located in or near the redevelopment project area within
22    the municipality.
23        (8) On and after November 1, 1999, if, after the
24    adoption of the redevelopment plan for the redevelopment
25    project area, any municipality desires to amend its
26    redevelopment plan to remove more inhabited residential

 

 

10000SB0001sam002- 77 -LRB100 06371 NHT 24463 a

1    units than specified in its original redevelopment plan,
2    that change shall be made in accordance with the procedures
3    in subsection (c) of Section 11-74.4-5.
4        (9) For redevelopment project areas designated prior
5    to November 1, 1999, the redevelopment plan may be amended
6    without further joint review board meeting or hearing,
7    provided that the municipality shall give notice of any
8    such changes by mail to each affected taxing district and
9    registrant on the interested party registry, to authorize
10    the municipality to expend tax increment revenues for
11    redevelopment project costs defined by paragraphs (5) and
12    (7.5), subparagraphs (E) and (F) of paragraph (11), and
13    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
14    long as the changes do not increase the total estimated
15    redevelopment project costs set out in the redevelopment
16    plan by more than 5% after adjustment for inflation from
17    the date the plan was adopted.
18    (o) "Redevelopment project" means any public and private
19development project in furtherance of the objectives of a
20redevelopment plan. On and after November 1, 1999 (the
21effective date of Public Act 91-478), no redevelopment plan may
22be approved or amended that includes the development of vacant
23land (i) with a golf course and related clubhouse and other
24facilities or (ii) designated by federal, State, county, or
25municipal government as public land for outdoor recreational
26activities or for nature preserves and used for that purpose

 

 

10000SB0001sam002- 78 -LRB100 06371 NHT 24463 a

1within 5 years prior to the adoption of the redevelopment plan.
2For the purpose of this subsection, "recreational activities"
3is limited to mean camping and hunting.
4    (p) "Redevelopment project area" means an area designated
5by the municipality, which is not less in the aggregate than 1
61/2 acres and in respect to which the municipality has made a
7finding that there exist conditions which cause the area to be
8classified as an industrial park conservation area or a
9blighted area or a conservation area, or a combination of both
10blighted areas and conservation areas.
11    (p-1) Notwithstanding any provision of this Act to the
12contrary, on and after August 25, 2009 (the effective date of
13Public Act 96-680), a redevelopment project area may include
14areas within a one-half mile radius of an existing or proposed
15Regional Transportation Authority Suburban Transit Access
16Route (STAR Line) station without a finding that the area is
17classified as an industrial park conservation area, a blighted
18area, a conservation area, or a combination thereof, but only
19if the municipality receives unanimous consent from the joint
20review board created to review the proposed redevelopment
21project area.
22    (p-2) Notwithstanding any provision of this Act to the
23contrary, on and after the effective date of this amendatory
24Act of the 99th General Assembly, a redevelopment project area
25may include areas within a transit facility improvement area
26that has been established pursuant to Section 11-74.4-3.3

 

 

10000SB0001sam002- 79 -LRB100 06371 NHT 24463 a

1without a finding that the area is classified as an industrial
2park conservation area, a blighted area, a conservation area,
3or any combination thereof.
4    (q) "Redevelopment project costs", except for
5redevelopment project areas created pursuant to subsection
6subsections (p-1) or (p-2), means and includes the sum total of
7all reasonable or necessary costs incurred or estimated to be
8incurred, and any such costs incidental to a redevelopment plan
9and a redevelopment project. Such costs include, without
10limitation, the following:
11        (1) Costs of studies, surveys, development of plans,
12    and specifications, implementation and administration of
13    the redevelopment plan including but not limited to staff
14    and professional service costs for architectural,
15    engineering, legal, financial, planning or other services,
16    provided however that no charges for professional services
17    may be based on a percentage of the tax increment
18    collected; except that on and after November 1, 1999 (the
19    effective date of Public Act 91-478), no contracts for
20    professional services, excluding architectural and
21    engineering services, may be entered into if the terms of
22    the contract extend beyond a period of 3 years. In
23    addition, "redevelopment project costs" shall not include
24    lobbying expenses. After consultation with the
25    municipality, each tax increment consultant or advisor to a
26    municipality that plans to designate or has designated a

 

 

10000SB0001sam002- 80 -LRB100 06371 NHT 24463 a

1    redevelopment project area shall inform the municipality
2    in writing of any contracts that the consultant or advisor
3    has entered into with entities or individuals that have
4    received, or are receiving, payments financed by tax
5    increment revenues produced by the redevelopment project
6    area with respect to which the consultant or advisor has
7    performed, or will be performing, service for the
8    municipality. This requirement shall be satisfied by the
9    consultant or advisor before the commencement of services
10    for the municipality and thereafter whenever any other
11    contracts with those individuals or entities are executed
12    by the consultant or advisor;
13        (1.5) After July 1, 1999, annual administrative costs
14    shall not include general overhead or administrative costs
15    of the municipality that would still have been incurred by
16    the municipality if the municipality had not designated a
17    redevelopment project area or approved a redevelopment
18    plan;
19        (1.6) The cost of marketing sites within the
20    redevelopment project area to prospective businesses,
21    developers, and investors;
22        (2) Property assembly costs, including but not limited
23    to acquisition of land and other property, real or
24    personal, or rights or interests therein, demolition of
25    buildings, site preparation, site improvements that serve
26    as an engineered barrier addressing ground level or below

 

 

10000SB0001sam002- 81 -LRB100 06371 NHT 24463 a

1    ground environmental contamination, including, but not
2    limited to parking lots and other concrete or asphalt
3    barriers, and the clearing and grading of land;
4        (3) Costs of rehabilitation, reconstruction or repair
5    or remodeling of existing public or private buildings,
6    fixtures, and leasehold improvements; and the cost of
7    replacing an existing public building if pursuant to the
8    implementation of a redevelopment project the existing
9    public building is to be demolished to use the site for
10    private investment or devoted to a different use requiring
11    private investment; including any direct or indirect costs
12    relating to Green Globes or LEED certified construction
13    elements or construction elements with an equivalent
14    certification;
15        (4) Costs of the construction of public works or
16    improvements, including any direct or indirect costs
17    relating to Green Globes or LEED certified construction
18    elements or construction elements with an equivalent
19    certification, except that on and after November 1, 1999,
20    redevelopment project costs shall not include the cost of
21    constructing a new municipal public building principally
22    used to provide offices, storage space, or conference
23    facilities or vehicle storage, maintenance, or repair for
24    administrative, public safety, or public works personnel
25    and that is not intended to replace an existing public
26    building as provided under paragraph (3) of subsection (q)

 

 

10000SB0001sam002- 82 -LRB100 06371 NHT 24463 a

1    of Section 11-74.4-3 unless either (i) the construction of
2    the new municipal building implements a redevelopment
3    project that was included in a redevelopment plan that was
4    adopted by the municipality prior to November 1, 1999, (ii)
5    the municipality makes a reasonable determination in the
6    redevelopment plan, supported by information that provides
7    the basis for that determination, that the new municipal
8    building is required to meet an increase in the need for
9    public safety purposes anticipated to result from the
10    implementation of the redevelopment plan, or (iii) the new
11    municipal public building is for the storage, maintenance,
12    or repair of transit vehicles and is located in a transit
13    facility improvement area that has been established
14    pursuant to Section 11-74.4-3.3;
15        (5) Costs of job training and retraining projects,
16    including the cost of "welfare to work" programs
17    implemented by businesses located within the redevelopment
18    project area;
19        (6) Financing costs, including but not limited to all
20    necessary and incidental expenses related to the issuance
21    of obligations and which may include payment of interest on
22    any obligations issued hereunder including interest
23    accruing during the estimated period of construction of any
24    redevelopment project for which such obligations are
25    issued and for not exceeding 36 months thereafter and
26    including reasonable reserves related thereto;

 

 

10000SB0001sam002- 83 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 84 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 85 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 86 -LRB100 06371 NHT 24463 a

1        Section 18-8.05 of the School Code or evidence-based
2        funding as defined in Section 18-8.15 of the School
3        Code attributable to these added new students subject
4        to the following annual limitations:
5                (i) for unit school districts, no more than 40%
6            of the total amount of property tax increment
7            revenue produced by those housing units that have
8            received tax increment finance assistance under
9            this Act;
10                (ii) for elementary school districts, no more
11            than 27% of the total amount of property tax
12            increment revenue produced by those housing units
13            that have received tax increment finance
14            assistance under this Act; and
15                (iii) for secondary school districts, no more
16            than 13% of the total amount of property tax
17            increment revenue produced by those housing units
18            that have received tax increment finance
19            assistance under this Act.
20            (C) For any school district in a municipality with
21        a population in excess of 1,000,000, the following
22        restrictions shall apply to the reimbursement of
23        increased costs under this paragraph (7.5):
24                (i) no increased costs shall be reimbursed
25            unless the school district certifies that each of
26            the schools affected by the assisted housing

 

 

10000SB0001sam002- 87 -LRB100 06371 NHT 24463 a

1            project is at or over its student capacity;
2                (ii) the amount reimbursable shall be reduced
3            by the value of any land donated to the school
4            district by the municipality or developer, and by
5            the value of any physical improvements made to the
6            schools by the municipality or developer; and
7                (iii) the amount reimbursed may not affect
8            amounts otherwise obligated by the terms of any
9            bonds, notes, or other funding instruments, or the
10            terms of any redevelopment agreement.
11        Any school district seeking payment under this
12        paragraph (7.5) shall, after July 1 and before
13        September 30 of each year, provide the municipality
14        with reasonable evidence to support its claim for
15        reimbursement before the municipality shall be
16        required to approve or make the payment to the school
17        district. If the school district fails to provide the
18        information during this period in any year, it shall
19        forfeit any claim to reimbursement for that year.
20        School districts may adopt a resolution waiving the
21        right to all or a portion of the reimbursement
22        otherwise required by this paragraph (7.5). By
23        acceptance of this reimbursement the school district
24        waives the right to directly or indirectly set aside,
25        modify, or contest in any manner the establishment of
26        the redevelopment project area or projects;

 

 

10000SB0001sam002- 88 -LRB100 06371 NHT 24463 a

1        (7.7) For redevelopment project areas designated (or
2    redevelopment project areas amended to add or increase the
3    number of tax-increment-financing assisted housing units)
4    on or after January 1, 2005 (the effective date of Public
5    Act 93-961), a public library district's increased costs
6    attributable to assisted housing units located within the
7    redevelopment project area for which the developer or
8    redeveloper receives financial assistance through an
9    agreement with the municipality or because the
10    municipality incurs the cost of necessary infrastructure
11    improvements within the boundaries of the assisted housing
12    sites necessary for the completion of that housing as
13    authorized by this Act shall be paid to the library
14    district by the municipality from the Special Tax
15    Allocation Fund when the tax increment revenue is received
16    as a result of the assisted housing units. This paragraph
17    (7.7) applies only if (i) the library district is located
18    in a county that is subject to the Property Tax Extension
19    Limitation Law or (ii) the library district is not located
20    in a county that is subject to the Property Tax Extension
21    Limitation Law but the district is prohibited by any other
22    law from increasing its tax levy rate without a prior voter
23    referendum.
24        The amount paid to a library district under this
25    paragraph (7.7) shall be calculated by multiplying (i) the
26    net increase in the number of persons eligible to obtain a

 

 

10000SB0001sam002- 89 -LRB100 06371 NHT 24463 a

1    library card in that district who reside in housing units
2    within the redevelopment project area that have received
3    financial assistance through an agreement with the
4    municipality or because the municipality incurs the cost of
5    necessary infrastructure improvements within the
6    boundaries of the housing sites necessary for the
7    completion of that housing as authorized by this Act since
8    the designation of the redevelopment project area by (ii)
9    the per-patron cost of providing library services so long
10    as it does not exceed $120. The per-patron cost shall be
11    the Total Operating Expenditures Per Capita for the library
12    in the previous fiscal year. The municipality may deduct
13    from the amount that it must pay to a library district
14    under this paragraph any amount that it has voluntarily
15    paid to the library district from the tax increment
16    revenue. The amount paid to a library district under this
17    paragraph (7.7) shall be no more than 2% of the amount
18    produced by the assisted housing units and deposited into
19    the Special Tax Allocation Fund.
20        A library district is not eligible for any payment
21    under this paragraph (7.7) unless the library district has
22    experienced an increase in the number of patrons from the
23    municipality that created the tax-increment-financing
24    district since the designation of the redevelopment
25    project area.
26        Any library district seeking payment under this

 

 

10000SB0001sam002- 90 -LRB100 06371 NHT 24463 a

1    paragraph (7.7) shall, after July 1 and before September 30
2    of each year, provide the municipality with convincing
3    evidence to support its claim for reimbursement before the
4    municipality shall be required to approve or make the
5    payment to the library district. If the library district
6    fails to provide the information during this period in any
7    year, it shall forfeit any claim to reimbursement for that
8    year. Library districts may adopt a resolution waiving the
9    right to all or a portion of the reimbursement otherwise
10    required by this paragraph (7.7). By acceptance of such
11    reimbursement, the library district shall forfeit any
12    right to directly or indirectly set aside, modify, or
13    contest in any manner whatsoever the establishment of the
14    redevelopment project area or projects;
15        (8) Relocation costs to the extent that a municipality
16    determines that relocation costs shall be paid or is
17    required to make payment of relocation costs by federal or
18    State law or in order to satisfy subparagraph (7) of
19    subsection (n);
20        (9) Payment in lieu of taxes;
21        (10) Costs of job training, retraining, advanced
22    vocational education or career education, including but
23    not limited to courses in occupational, semi-technical or
24    technical fields leading directly to employment, incurred
25    by one or more taxing districts, provided that such costs
26    (i) are related to the establishment and maintenance of

 

 

10000SB0001sam002- 91 -LRB100 06371 NHT 24463 a

1    additional job training, advanced vocational education or
2    career education programs for persons employed or to be
3    employed by employers located in a redevelopment project
4    area; and (ii) when incurred by a taxing district or taxing
5    districts other than the municipality, are set forth in a
6    written agreement by or among the municipality and the
7    taxing district or taxing districts, which agreement
8    describes the program to be undertaken, including but not
9    limited to the number of employees to be trained, a
10    description of the training and services to be provided,
11    the number and type of positions available or to be
12    available, itemized costs of the program and sources of
13    funds to pay for the same, and the term of the agreement.
14    Such costs include, specifically, the payment by community
15    college districts of costs pursuant to Sections 3-37, 3-38,
16    3-40 and 3-40.1 of the Public Community College Act and by
17    school districts of costs pursuant to Sections 10-22.20a
18    and 10-23.3a of the The School Code;
19        (11) Interest cost incurred by a redeveloper related to
20    the construction, renovation or rehabilitation of a
21    redevelopment project provided that:
22            (A) such costs are to be paid directly from the
23        special tax allocation fund established pursuant to
24        this Act;
25            (B) such payments in any one year may not exceed
26        30% of the annual interest costs incurred by the

 

 

10000SB0001sam002- 92 -LRB100 06371 NHT 24463 a

1        redeveloper with regard to the redevelopment project
2        during that year;
3            (C) if there are not sufficient funds available in
4        the special tax allocation fund to make the payment
5        pursuant to this paragraph (11) then the amounts so due
6        shall accrue and be payable when sufficient funds are
7        available in the special tax allocation fund;
8            (D) the total of such interest payments paid
9        pursuant to this Act may not exceed 30% of the total
10        (i) cost paid or incurred by the redeveloper for the
11        redevelopment project plus (ii) redevelopment project
12        costs excluding any property assembly costs and any
13        relocation costs incurred by a municipality pursuant
14        to this Act; and
15            (E) the cost limits set forth in subparagraphs (B)
16        and (D) of paragraph (11) shall be modified for the
17        financing of rehabilitated or new housing units for
18        low-income households and very low-income households,
19        as defined in Section 3 of the Illinois Affordable
20        Housing Act. The percentage of 75% shall be substituted
21        for 30% in subparagraphs (B) and (D) of paragraph (11);
22        and .
23            (F) instead Instead of the eligible costs provided
24        by subparagraphs (B) and (D) of paragraph (11), as
25        modified by this subparagraph, and notwithstanding any
26        other provisions of this Act to the contrary, the

 

 

10000SB0001sam002- 93 -LRB100 06371 NHT 24463 a

1        municipality may pay from tax increment revenues up to
2        50% of the cost of construction of new housing units to
3        be occupied by low-income households and very
4        low-income households as defined in Section 3 of the
5        Illinois Affordable Housing Act. The cost of
6        construction of those units may be derived from the
7        proceeds of bonds issued by the municipality under this
8        Act or other constitutional or statutory authority or
9        from other sources of municipal revenue that may be
10        reimbursed from tax increment revenues or the proceeds
11        of bonds issued to finance the construction of that
12        housing.
13            The eligible costs provided under this
14        subparagraph (F) of paragraph (11) shall be an eligible
15        cost for the construction, renovation, and
16        rehabilitation of all low and very low-income housing
17        units, as defined in Section 3 of the Illinois
18        Affordable Housing Act, within the redevelopment
19        project area. If the low and very low-income units are
20        part of a residential redevelopment project that
21        includes units not affordable to low and very
22        low-income households, only the low and very
23        low-income units shall be eligible for benefits under
24        this subparagraph (F) of paragraph (11). The standards
25        for maintaining the occupancy by low-income households
26        and very low-income households, as defined in Section 3

 

 

10000SB0001sam002- 94 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 95 -LRB100 06371 NHT 24463 a

1    100,000, the cost of day care services for children of
2    employees from low-income families working for businesses
3    located within the redevelopment project area and all or a
4    portion of the cost of operation of day care centers
5    established by redevelopment project area businesses to
6    serve employees from low-income families working in
7    businesses located in the redevelopment project area. For
8    the purposes of this paragraph, "low-income families"
9    means families whose annual income does not exceed 80% of
10    the municipal, county, or regional median income, adjusted
11    for family size, as the annual income and municipal,
12    county, or regional median income are determined from time
13    to time by the United States Department of Housing and
14    Urban Development.
15    (12) Unless explicitly stated herein the cost of
16construction of new privately-owned buildings shall not be an
17eligible redevelopment project cost.
18    (13) After November 1, 1999 (the effective date of Public
19Act 91-478), none of the redevelopment project costs enumerated
20in this subsection shall be eligible redevelopment project
21costs if those costs would provide direct financial support to
22a retail entity initiating operations in the redevelopment
23project area while terminating operations at another Illinois
24location within 10 miles of the redevelopment project area but
25outside the boundaries of the redevelopment project area
26municipality. For purposes of this paragraph, termination

 

 

10000SB0001sam002- 96 -LRB100 06371 NHT 24463 a

1means a closing of a retail operation that is directly related
2to the opening of the same operation or like retail entity
3owned or operated by more than 50% of the original ownership in
4a redevelopment project area, but it does not mean closing an
5operation for reasons beyond the control of the retail entity,
6as documented by the retail entity, subject to a reasonable
7finding by the municipality that the current location contained
8inadequate space, had become economically obsolete, or was no
9longer a viable location for the retailer or serviceman.
10    (14) No cost shall be a redevelopment project cost in a
11redevelopment project area if used to demolish, remove, or
12substantially modify a historic resource, after August 26, 2008
13(the effective date of Public Act 95-934), unless no prudent
14and feasible alternative exists. "Historic resource" for the
15purpose of this paragraph item (14) means (i) a place or
16structure that is included or eligible for inclusion on the
17National Register of Historic Places or (ii) a contributing
18structure in a district on the National Register of Historic
19Places. This paragraph item (14) does not apply to a place or
20structure for which demolition, removal, or modification is
21subject to review by the preservation agency of a Certified
22Local Government designated as such by the National Park
23Service of the United States Department of the Interior.
24    If a special service area has been established pursuant to
25the Special Service Area Tax Act or Special Service Area Tax
26Law, then any tax increment revenues derived from the tax

 

 

10000SB0001sam002- 97 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 98 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 99 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 100 -LRB100 06371 NHT 24463 a

1shall have deducted therefrom the certified Initial Sales Tax
2Amounts, Adjusted Initial Sales Tax Amounts or the Revised
3Initial Sales Tax Amounts. Municipalities intending to receive
4a distribution of State Sales Tax Increment must report a list
5of retailers to the Department of Revenue by October 31, 1988
6and by July 31, of each year thereafter.
7    (t) "Taxing districts" means counties, townships, cities
8and incorporated towns and villages, school, road, park,
9sanitary, mosquito abatement, forest preserve, public health,
10fire protection, river conservancy, tuberculosis sanitarium
11and any other municipal corporations or districts with the
12power to levy taxes.
13    (u) "Taxing districts' capital costs" means those costs of
14taxing districts for capital improvements that are found by the
15municipal corporate authorities to be necessary and directly
16result from the redevelopment project.
17    (v) As used in subsection (a) of Section 11-74.4-3 of this
18Act, "vacant land" means any parcel or combination of parcels
19of real property without industrial, commercial, and
20residential buildings which has not been used for commercial
21agricultural purposes within 5 years prior to the designation
22of the redevelopment project area, unless the parcel is
23included in an industrial park conservation area or the parcel
24has been subdivided; provided that if the parcel was part of a
25larger tract that has been divided into 3 or more smaller
26tracts that were accepted for recording during the period from

 

 

10000SB0001sam002- 101 -LRB100 06371 NHT 24463 a

11950 to 1990, then the parcel shall be deemed to have been
2subdivided, and all proceedings and actions of the municipality
3taken in that connection with respect to any previously
4approved or designated redevelopment project area or amended
5redevelopment project area are hereby validated and hereby
6declared to be legally sufficient for all purposes of this Act.
7For purposes of this Section and only for land subject to the
8subdivision requirements of the Plat Act, land is subdivided
9when the original plat of the proposed Redevelopment Project
10Area or relevant portion thereof has been properly certified,
11acknowledged, approved, and recorded or filed in accordance
12with the Plat Act and a preliminary plat, if any, for any
13subsequent phases of the proposed Redevelopment Project Area or
14relevant portion thereof has been properly approved and filed
15in accordance with the applicable ordinance of the
16municipality.
17    (w) "Annual Total Increment" means the sum of each
18municipality's annual Net Sales Tax Increment and each
19municipality's annual Net Utility Tax Increment. The ratio of
20the Annual Total Increment of each municipality to the Annual
21Total Increment for all municipalities, as most recently
22calculated by the Department, shall determine the proportional
23shares of the Illinois Tax Increment Fund to be distributed to
24each municipality.
25    (x) "LEED certified" means any certification level of
26construction elements by a qualified Leadership in Energy and

 

 

10000SB0001sam002- 102 -LRB100 06371 NHT 24463 a

1Environmental Design Accredited Professional as determined by
2the U.S. Green Building Council.
3    (y) "Green Globes certified" means any certification level
4of construction elements by a qualified Green Globes
5Professional as determined by the Green Building Initiative.
6(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
7    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
8    Sec. 11-74.4-8. Tax increment allocation financing. A
9municipality may not adopt tax increment financing in a
10redevelopment project area after the effective date of this
11amendatory Act of 1997 that will encompass an area that is
12currently included in an enterprise zone created under the
13Illinois Enterprise Zone Act unless that municipality,
14pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
15amends the enterprise zone designating ordinance to limit the
16eligibility for tax abatements as provided in Section 5.4.1 of
17the Illinois Enterprise Zone Act. A municipality, at the time a
18redevelopment project area is designated, may adopt tax
19increment allocation financing by passing an ordinance
20providing that the ad valorem taxes, if any, arising from the
21levies upon taxable real property in such redevelopment project
22area by taxing districts and tax rates determined in the manner
23provided in paragraph (c) of Section 11-74.4-9 each year after
24the effective date of the ordinance until redevelopment project
25costs and all municipal obligations financing redevelopment

 

 

10000SB0001sam002- 103 -LRB100 06371 NHT 24463 a

1project costs incurred under this Division have been paid shall
2be divided as follows, provided, however, that with respect to
3any redevelopment project area located within a transit
4facility improvement area established pursuant to Section
511-74.4-3.3 in a municipality with a population of 1,000,000 or
6more, ad valorem taxes, if any, arising from the levies upon
7taxable real property in such redevelopment project area shall
8be allocated as specifically provided in this Section:
9        (a) That portion of taxes levied upon each taxable lot,
10    block, tract or parcel of real property which is
11    attributable to the lower of the current equalized assessed
12    value or the initial equalized assessed value of each such
13    taxable lot, block, tract or parcel of real property in the
14    redevelopment project area shall be allocated to and when
15    collected shall be paid by the county collector to the
16    respective affected taxing districts in the manner
17    required by law in the absence of the adoption of tax
18    increment allocation financing.
19        (b) Except from a tax levied by a township to retire
20    bonds issued to satisfy court-ordered damages, that
21    portion, if any, of such taxes which is attributable to the
22    increase in the current equalized assessed valuation of
23    each taxable lot, block, tract or parcel of real property
24    in the redevelopment project area over and above the
25    initial equalized assessed value of each property in the
26    project area shall be allocated to and when collected shall

 

 

10000SB0001sam002- 104 -LRB100 06371 NHT 24463 a

1    be paid to the municipal treasurer who shall deposit said
2    taxes into a special fund called the special tax allocation
3    fund of the municipality for the purpose of paying
4    redevelopment project costs and obligations incurred in
5    the payment thereof. In any county with a population of
6    3,000,000 or more that has adopted a procedure for
7    collecting taxes that provides for one or more of the
8    installments of the taxes to be billed and collected on an
9    estimated basis, the municipal treasurer shall be paid for
10    deposit in the special tax allocation fund of the
11    municipality, from the taxes collected from estimated
12    bills issued for property in the redevelopment project
13    area, the difference between the amount actually collected
14    from each taxable lot, block, tract, or parcel of real
15    property within the redevelopment project area and an
16    amount determined by multiplying the rate at which taxes
17    were last extended against the taxable lot, block, track,
18    or parcel of real property in the manner provided in
19    subsection (c) of Section 11-74.4-9 by the initial
20    equalized assessed value of the property divided by the
21    number of installments in which real estate taxes are
22    billed and collected within the county; provided that the
23    payments on or before December 31, 1999 to a municipal
24    treasurer shall be made only if each of the following
25    conditions are met:
26        (1) The total equalized assessed value of the

 

 

10000SB0001sam002- 105 -LRB100 06371 NHT 24463 a

1        redevelopment project area as last determined was not
2        less than 175% of the total initial equalized assessed
3        value.
4        (2) Not more than 50% of the total equalized assessed
5        value of the redevelopment project area as last
6        determined is attributable to a piece of property
7        assigned a single real estate index number.
8        (3) The municipal clerk has certified to the county
9        clerk that the municipality has issued its obligations
10        to which there has been pledged the incremental
11        property taxes of the redevelopment project area or
12        taxes levied and collected on any or all property in
13        the municipality or the full faith and credit of the
14        municipality to pay or secure payment for all or a
15        portion of the redevelopment project costs. The
16        certification shall be filed annually no later than
17        September 1 for the estimated taxes to be distributed
18        in the following year; however, for the year 1992 the
19        certification shall be made at any time on or before
20        March 31, 1992.
21        (4) The municipality has not requested that the total
22        initial equalized assessed value of real property be
23        adjusted as provided in subsection (b) of Section
24        11-74.4-9.
25        The conditions of paragraphs (1) through (4) do not
26    apply after December 31, 1999 to payments to a municipal

 

 

10000SB0001sam002- 106 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 107 -LRB100 06371 NHT 24463 a

1    redevelopment project area is a home-rule community with a
2    1990 population of between 25,000 and 50,000, (c) the
3    municipality is wholly located within a county with a 1990
4    population of over 750,000 and (d) the redevelopment
5    project area was established by the municipality prior to
6    June 1, 1990. This payment shall be in lieu of a
7    contribution of ad valorem taxes on real property. If no
8    such payment is made, any redevelopment project area of the
9    municipality shall be dissolved.
10        If a municipality has adopted tax increment allocation
11    financing by ordinance and the County Clerk thereafter
12    certifies the "total initial equalized assessed value as
13    adjusted" of the taxable real property within such
14    redevelopment project area in the manner provided in
15    paragraph (b) of Section 11-74.4-9, each year after the
16    date of the certification of the total initial equalized
17    assessed value as adjusted until redevelopment project
18    costs and all municipal obligations financing
19    redevelopment project costs have been paid the ad valorem
20    taxes, if any, arising from the levies upon the taxable
21    real property in such redevelopment project area by taxing
22    districts and tax rates determined in the manner provided
23    in paragraph (c) of Section 11-74.4-9 shall be divided as
24    follows, provided, however, that with respect to any
25    redevelopment project area located within a transit
26    facility improvement area established pursuant to Section

 

 

10000SB0001sam002- 108 -LRB100 06371 NHT 24463 a

1    11-74.4-3.3 in a municipality with a population of
2    1,000,000 or more, ad valorem taxes, if any, arising from
3    the levies upon the taxable real property in such
4    redevelopment project area shall be allocated as
5    specifically provided in this Section:
6        (1) That portion of the taxes levied upon each taxable
7        lot, block, tract or parcel of real property which is
8        attributable to the lower of the current equalized
9        assessed value or "current equalized assessed value as
10        adjusted" or the initial equalized assessed value of
11        each such taxable lot, block, tract, or parcel of real
12        property existing at the time tax increment financing
13        was adopted, minus the total current homestead
14        exemptions under Article 15 of the Property Tax Code in
15        the redevelopment project area shall be allocated to
16        and when collected shall be paid by the county
17        collector to the respective affected taxing districts
18        in the manner required by law in the absence of the
19        adoption of tax increment allocation financing.
20        (2) That portion, if any, of such taxes which is
21        attributable to the increase in the current equalized
22        assessed valuation of each taxable lot, block, tract,
23        or parcel of real property in the redevelopment project
24        area, over and above the initial equalized assessed
25        value of each property existing at the time tax
26        increment financing was adopted, minus the total

 

 

10000SB0001sam002- 109 -LRB100 06371 NHT 24463 a

1        current homestead exemptions pertaining to each piece
2        of property provided by Article 15 of the Property Tax
3        Code in the redevelopment project area, shall be
4        allocated to and when collected shall be paid to the
5        municipal Treasurer, who shall deposit said taxes into
6        a special fund called the special tax allocation fund
7        of the municipality for the purpose of paying
8        redevelopment project costs and obligations incurred
9        in the payment thereof.
10        The municipality may pledge in the ordinance the funds
11    in and to be deposited in the special tax allocation fund
12    for the payment of such costs and obligations. No part of
13    the current equalized assessed valuation of each property
14    in the redevelopment project area attributable to any
15    increase above the total initial equalized assessed value,
16    or the total initial equalized assessed value as adjusted,
17    of such properties shall be used in calculating the general
18    State school aid formula, provided for in Section 18-8 of
19    the School Code, or the evidence-based funding formula,
20    provided for in Section 18-8.15 of the School Code, until
21    such time as all redevelopment project costs have been paid
22    as provided for in this Section.
23        Whenever a municipality issues bonds for the purpose of
24    financing redevelopment project costs, such municipality
25    may provide by ordinance for the appointment of a trustee,
26    which may be any trust company within the State, and for

 

 

10000SB0001sam002- 110 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 111 -LRB100 06371 NHT 24463 a

1    incremental revenue received from the State or the
2    municipality less any annual surplus distribution of
3    incremental revenue previously made; with any remaining
4    funds to be paid to the County Collector who shall
5    immediately thereafter pay said funds to the taxing
6    districts in the redevelopment project area in the same
7    manner and proportion as the most recent distribution by
8    the county collector to the affected districts of real
9    property taxes from real property in the redevelopment
10    project area.
11        Upon the payment of all redevelopment project costs,
12    the retirement of obligations, the distribution of any
13    excess monies pursuant to this Section, and final closing
14    of the books and records of the redevelopment project area,
15    the municipality shall adopt an ordinance dissolving the
16    special tax allocation fund for the redevelopment project
17    area and terminating the designation of the redevelopment
18    project area as a redevelopment project area. Title to real
19    or personal property and public improvements acquired by or
20    for the municipality as a result of the redevelopment
21    project and plan shall vest in the municipality when
22    acquired and shall continue to be held by the municipality
23    after the redevelopment project area has been terminated.
24    Municipalities shall notify affected taxing districts
25    prior to November 1 if the redevelopment project area is to
26    be terminated by December 31 of that same year. If a

 

 

10000SB0001sam002- 112 -LRB100 06371 NHT 24463 a

1    municipality extends estimated dates of completion of a
2    redevelopment project and retirement of obligations to
3    finance a redevelopment project, as allowed by this
4    amendatory Act of 1993, that extension shall not extend the
5    property tax increment allocation financing authorized by
6    this Section. Thereafter the rates of the taxing districts
7    shall be extended and taxes levied, collected and
8    distributed in the manner applicable in the absence of the
9    adoption of tax increment allocation financing.
10        If a municipality with a population of 1,000,000 or
11    more has adopted by ordinance tax increment allocation
12    financing for a redevelopment project area located in a
13    transit facility improvement area established pursuant to
14    Section 11-74.4-3.3, for each year after the effective date
15    of the ordinance until redevelopment project costs and all
16    municipal obligations financing redevelopment project
17    costs have been paid, the ad valorem taxes, if any, arising
18    from the levies upon the taxable real property in that
19    redevelopment project area by taxing districts and tax
20    rates determined in the manner provided in paragraph (c) of
21    Section 11-74.4-9 shall be divided as follows:
22            (1) That portion of the taxes levied upon each
23        taxable lot, block, tract or parcel of real property
24        which is attributable to the lower of (i) the current
25        equalized assessed value or "current equalized
26        assessed value as adjusted" or (ii) the initial

 

 

10000SB0001sam002- 113 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 114 -LRB100 06371 NHT 24463 a

1            financing, shall be paid to such school district in
2            the manner required by law in the absence of the
3            adoption of tax increment allocation financing;
4            then
5                (B) 80% of the remaining portion shall be paid
6            to the municipal Treasurer, who shall deposit said
7            taxes into a special fund called the special tax
8            allocation fund of the municipality for the
9            purpose of paying redevelopment project costs and
10            obligations incurred in the payment thereof; and
11            then
12                (C) 20% of the remaining portion shall be paid
13            to the respective affected taxing districts, other
14            than the school district described in clause (a)
15            above, in the manner required by law in the absence
16            of the adoption of tax increment allocation
17            financing.
18    Nothing in this Section shall be construed as relieving
19property in such redevelopment project areas from being
20assessed as provided in the Property Tax Code or as relieving
21owners of such property from paying a uniform rate of taxes, as
22required by Section 4 of Article IX of the Illinois
23Constitution.
24(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
25    (65 ILCS 5/11-74.6-35)

 

 

10000SB0001sam002- 115 -LRB100 06371 NHT 24463 a

1    Sec. 11-74.6-35. Ordinance for tax increment allocation
2financing.
3    (a) A municipality, at the time a redevelopment project
4area is designated, may adopt tax increment allocation
5financing by passing an ordinance providing that the ad valorem
6taxes, if any, arising from the levies upon taxable real
7property within the redevelopment project area by taxing
8districts and tax rates determined in the manner provided in
9subsection (b) of Section 11-74.6-40 each year after the
10effective date of the ordinance until redevelopment project
11costs and all municipal obligations financing redevelopment
12project costs incurred under this Act have been paid shall be
13divided as follows:
14        (1) That portion of the taxes levied upon each taxable
15    lot, block, tract or parcel of real property that is
16    attributable to the lower of the current equalized assessed
17    value or the initial equalized assessed value or the
18    updated initial equalized assessed value of each taxable
19    lot, block, tract or parcel of real property in the
20    redevelopment project area shall be allocated to and when
21    collected shall be paid by the county collector to the
22    respective affected taxing districts in the manner
23    required by law without regard to the adoption of tax
24    increment allocation financing.
25        (2) That portion, if any, of those taxes that is
26    attributable to the increase in the current equalized

 

 

10000SB0001sam002- 116 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 117 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 118 -LRB100 06371 NHT 24463 a

1made by a county with 3,000,000 or more inhabitants that has
2adopted an estimated billing procedure for collecting taxes. If
3a county that has adopted the estimated billing procedure makes
4an erroneous overpayment of tax revenue to the municipal
5treasurer, then the county may seek a refund of that
6overpayment. The county shall send the municipal treasurer a
7notice of liability for the overpayment on or before the
8mailing date of the next real estate tax bill within the
9county. The refund shall be limited to the amount of the
10overpayment.
11    (b) It is the intent of this Act that a municipality's own
12ad valorem tax arising from levies on taxable real property be
13included in the determination of incremental revenue in the
14manner provided in paragraph (b) of Section 11-74.6-40.
15    (c) If a municipality has adopted tax increment allocation
16financing for a redevelopment project area by ordinance and the
17county clerk thereafter certifies the total initial equalized
18assessed value or the total updated initial equalized assessed
19value of the taxable real property within such redevelopment
20project area in the manner provided in paragraph (a) or (b) of
21Section 11-74.6-40, each year after the date of the
22certification of the total initial equalized assessed value or
23the total updated initial equalized assessed value until
24redevelopment project costs and all municipal obligations
25financing redevelopment project costs have been paid, the ad
26valorem taxes, if any, arising from the levies upon the taxable

 

 

10000SB0001sam002- 119 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 120 -LRB100 06371 NHT 24463 a

1    the updated initial equalized assessed value of each parcel
2    if the updated initial equalized assessed value of that
3    parcel has been certified in accordance with Section
4    11-74.6-40, shall be allocated to and when collected shall
5    be paid to the municipal treasurer, who shall deposit those
6    taxes into a special fund called the special tax allocation
7    fund of the municipality for the purpose of paying
8    redevelopment project costs and obligations incurred in
9    the payment thereof.
10    (d) The municipality may pledge in the ordinance the funds
11in and to be deposited in the special tax allocation fund for
12the payment of redevelopment project costs and obligations. No
13part of the current equalized assessed value of each property
14in the redevelopment project area attributable to any increase
15above the total initial equalized assessed value or the total
16initial updated equalized assessed value of the property, shall
17be used in calculating the general General State aid formula
18School Aid Formula, provided for in Section 18-8 of the School
19Code, or the evidence-based funding formula, provided for in
20Section 18-8.15 of the School Code, until all redevelopment
21project costs have been paid as provided for in this Section.
22    Whenever a municipality issues bonds for the purpose of
23financing redevelopment project costs, that municipality may
24provide by ordinance for the appointment of a trustee, which
25may be any trust company within the State, and for the
26establishment of any funds or accounts to be maintained by that

 

 

10000SB0001sam002- 121 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 122 -LRB100 06371 NHT 24463 a

1to the taxing districts in the redevelopment project area in
2the same manner and proportion as the most recent distribution
3by the county collector to the affected districts of real
4property taxes from real property situated in the redevelopment
5project area.
6    Upon the payment of all redevelopment project costs,
7retirement of obligations and the distribution of any excess
8moneys under this Section, the municipality shall adopt an
9ordinance dissolving the special tax allocation fund for the
10redevelopment project area and terminating the designation of
11the redevelopment project area as a redevelopment project area.
12Thereafter the tax levies of taxing districts shall be
13extended, collected and distributed in the same manner
14applicable before the adoption of tax increment allocation
15financing. Municipality shall notify affected taxing districts
16prior to November if the redevelopment project area is to be
17terminated by December 31 of that same year.
18    Nothing in this Section shall be construed as relieving
19property in a redevelopment project area from being assessed as
20provided in the Property Tax Code or as relieving owners of
21that property from paying a uniform rate of taxes, as required
22by Section 4 of Article IX of the Illinois Constitution.
23(Source: P.A. 91-474, eff. 11-1-99.)
 
24    Section 40. The Economic Development Project Area Tax
25Increment Allocation Act of 1995 is amended by changing Section

 

 

10000SB0001sam002- 123 -LRB100 06371 NHT 24463 a

150 as follows:
 
2    (65 ILCS 110/50)
3    Sec. 50. Special tax allocation fund.
4    (a) If a county clerk has certified the "total initial
5equalized assessed value" of the taxable real property within
6an economic development project area in the manner provided in
7Section 45, each year after the date of the certification by
8the county clerk of the "total initial equalized assessed
9value", until economic development project costs and all
10municipal obligations financing economic development project
11costs have been paid, the ad valorem taxes, if any, arising
12from the levies upon the taxable real property in the economic
13development project area by taxing districts and tax rates
14determined in the manner provided in subsection (b) of Section
1545 shall be divided as follows:
16        (1) That portion of the taxes levied upon each taxable
17    lot, block, tract, or parcel of real property that is
18    attributable to the lower of the current equalized assessed
19    value or the initial equalized assessed value of each
20    taxable lot, block, tract, or parcel of real property
21    existing at the time tax increment financing was adopted
22    shall be allocated to (and when collected shall be paid by
23    the county collector to) the respective affected taxing
24    districts in the manner required by law in the absence of
25    the adoption of tax increment allocation financing.

 

 

10000SB0001sam002- 124 -LRB100 06371 NHT 24463 a

1        (2) That portion, if any, of the taxes that is
2    attributable to the increase in the current equalized
3    assessed valuation of each taxable lot, block, tract, or
4    parcel of real property in the economic development project
5    area, over and above the initial equalized assessed value
6    of each property existing at the time tax increment
7    financing was adopted, shall be allocated to (and when
8    collected shall be paid to) the municipal treasurer, who
9    shall deposit the taxes into a special fund (called the
10    special tax allocation fund of the municipality) for the
11    purpose of paying economic development project costs and
12    obligations incurred in the payment of those costs.
13    (b) The municipality, by an ordinance adopting tax
14increment allocation financing, may pledge the monies in and to
15be deposited into the special tax allocation fund for the
16payment of obligations issued under this Act and for the
17payment of economic development project costs. No part of the
18current equalized assessed valuation of each property in the
19economic development project area attributable to any increase
20above the total initial equalized assessed value of those
21properties shall be used in calculating the general State
22school aid formula under Section 18-8 of the School Code or the
23evidence-based funding formula under Section 18-8.15 of the
24School Code, until all economic development projects costs have
25been paid as provided for in this Section.
26    (c) When the economic development projects costs,

 

 

10000SB0001sam002- 125 -LRB100 06371 NHT 24463 a

1including without limitation all municipal obligations
2financing economic development project costs incurred under
3this Act, have been paid, all surplus monies then remaining in
4the special tax allocation fund shall be distributed by being
5paid by the municipal treasurer to the county collector, who
6shall immediately pay the monies to the taxing districts having
7taxable property in the economic development project area in
8the same manner and proportion as the most recent distribution
9by the county collector to those taxing districts of real
10property taxes from real property in the economic development
11project area.
12    (d) Upon the payment of all economic development project
13costs, retirement of obligations, and distribution of any
14excess monies under this Section and not later than 23 years
15from the date of the adoption of the ordinance establishing the
16economic development project area, the municipality shall
17adopt an ordinance dissolving the special tax allocation fund
18for the economic development project area and terminating the
19designation of the economic development project area as an
20economic development project area. Thereafter, the rates of the
21taxing districts shall be extended and taxes shall be levied,
22collected, and distributed in the manner applicable in the
23absence of the adoption of tax increment allocation financing.
24    (e) Nothing in this Section shall be construed as relieving
25property in the economic development project areas from being
26assessed as provided in the Property Tax Code or as relieving

 

 

10000SB0001sam002- 126 -LRB100 06371 NHT 24463 a

1owners or lessees of that property from paying a uniform rate
2of taxes as required by Section 4 of Article IX of the Illinois
3Constitution.
4(Source: P.A. 98-463, eff. 8-16-13.)
 
5    Section 45. The School Code is amended by changing Sections
61A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1D-1, 1E-20, 1F-20, 1F-62,
71H-20, 1H-70, 2-3.33, 2-3.51.5, 2-3.66, 2-3.66b, 2-3.84,
82-3.109a, 3-14.21, 7-14A, 10-17a, 10-19, 10-22.5a, 10-22.20,
910-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50, 13B-50.10,
1013B-50.15, 14-7.02b, 14-13.01, 14C-1, 14C-12, 17-1, 17-1.2,
1117-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10, 18-9, 18-12,
1226-16, 27-8.1, 27A-9, 27A-11, 27A-11.5, 34-2.3, 34-18,
1334-18.30, and 34-43.1 and by adding Sections 17-3.6 and 18-8.15
14as follows:
 
15    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
16    Sec. 1A-8. Powers of the Board in Assisting Districts
17Deemed in Financial Difficulties. To promote the financial
18integrity of school districts, the State Board of Education
19shall be provided the necessary powers to promote sound
20financial management and continue operation of the public
21schools.
22    (a) The State Superintendent of Education may require a
23school district, including any district subject to Article 34A
24of this Code, to share financial information relevant to a

 

 

10000SB0001sam002- 127 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 128 -LRB100 06371 NHT 24463 a

1    of this Code.
2        (2) The district has issued tax anticipation warrants
3    or tax anticipation notes in anticipation of a second
4    year's taxes when warrants or notes in anticipation of
5    current year taxes are still outstanding, as authorized by
6    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
7    issued short-term debt against 2 future revenue sources,
8    such as, but not limited to, tax anticipation warrants and
9    general State aid or evidence-based funding Aid
10    certificates or tax anticipation warrants and revenue
11    anticipation notes.
12        (3) The district has for 2 consecutive years shown an
13    excess of expenditures and other financing uses over
14    revenues and other financing sources and beginning fund
15    balances on its annual financial report for the aggregate
16    totals of the Educational, Operations and Maintenance,
17    Transportation, and Working Cash Funds.
18        (4) The district refuses to provide financial
19    information or cooperate with the State Superintendent in
20    an investigation of the district's financial condition.
21        (5) The district is likely to fail to fully meet any
22    regularly scheduled, payroll-period obligations when due
23    or any debt service payments when due or both.
24    No school district shall be certified by the State Board of
25Education to be in financial difficulty solely by reason of any
26of the above circumstances arising as a result of (i) the

 

 

10000SB0001sam002- 129 -LRB100 06371 NHT 24463 a

1failure of the county to make any distribution of property tax
2money due the district at the time such distribution is due or
3(ii) the failure of this State to make timely payments of
4general State aid, evidence-based funding, or any of the
5mandated categoricals; or if the district clearly demonstrates
6to the satisfaction of the State Board of Education at the time
7of its determination that such condition no longer exists. If
8the State Board of Education certifies that a district in a
9city with 500,000 inhabitants or more is in financial
10difficulty, the State Board shall so notify the Governor and
11the Mayor of the city in which the district is located. The
12State Board of Education may require school districts certified
13in financial difficulty, except those districts subject to
14Article 34A, to develop, adopt and submit a financial plan
15within 45 days after certification of financial difficulty. The
16financial plan shall be developed according to guidelines
17presented to the district by the State Board of Education
18within 14 days of certification. Such guidelines shall address
19the specific nature of each district's financial difficulties.
20Any proposed budget of the district shall be consistent with
21the financial plan submitted to and approved by the State Board
22of Education.
23    A district certified to be in financial difficulty, other
24than a district subject to Article 34A, shall report to the
25State Board of Education at such times and in such manner as
26the State Board may direct, concerning the district's

 

 

10000SB0001sam002- 130 -LRB100 06371 NHT 24463 a

1compliance with each financial plan. The State Board may review
2the district's operations, obtain budgetary data and financial
3statements, require the district to produce reports, and have
4access to any other information in the possession of the
5district that it deems relevant. The State Board may issue
6recommendations or directives within its powers to the district
7to assist in compliance with the financial plan. The district
8shall produce such budgetary data, financial statements,
9reports and other information and comply with such directives.
10If the State Board of Education determines that a district has
11failed to comply with its financial plan, the State Board of
12Education may rescind approval of the plan and appoint a
13Financial Oversight Panel for the district as provided in
14Section 1B-4. This action shall be taken only after the
15district has been given notice and an opportunity to appear
16before the State Board of Education to discuss its failure to
17comply with its financial plan.
18    No bonds, notes, teachers orders, tax anticipation
19warrants or other evidences of indebtedness shall be issued or
20sold by a school district or be legally binding upon or
21enforceable against a local board of education of a district
22certified to be in financial difficulty unless and until the
23financial plan required under this Section has been approved by
24the State Board of Education.
25    Any financial profile compiled and distributed by the State
26Board of Education in Fiscal Year 2009 or any fiscal year

 

 

10000SB0001sam002- 131 -LRB100 06371 NHT 24463 a

1thereafter shall incorporate such adjustments as may be needed
2in the profile scores to reflect the financial effects of the
3inability or refusal of the State of Illinois to make timely
4disbursements of any general State aid, evidence-based
5funding, or mandated categorical aid payments due school
6districts or to fully reimburse school districts for mandated
7categorical programs pursuant to reimbursement formulas
8provided in this School Code.
9(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1097-429, eff. 8-16-11.)
 
11    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
12    Sec. 1B-5. When a petition for emergency financial
13assistance for a school district is allowed by the State Board
14under Section 1B-4, the State Superintendent shall within 10
15days thereafter appoint 3 members to serve at the State
16Superintendent's pleasure on a Financial Oversight Panel for
17the district. The State Superintendent shall designate one of
18the members of the Panel to serve as its Chairman. In the event
19of vacancy or resignation the State Superintendent shall
20appoint a successor within 10 days of receiving notice thereof.
21    Members of the Panel shall be selected primarily on the
22basis of their experience and education in financial
23management, with consideration given to persons knowledgeable
24in education finance. A member of the Panel may not be a board
25member or employee of the district for which the Panel is

 

 

10000SB0001sam002- 132 -LRB100 06371 NHT 24463 a

1constituted, nor may a member have a direct financial interest
2in that district.
3    Panel members shall serve without compensation, but may be
4reimbursed for travel and other necessary expenses incurred in
5the performance of their official duties by the State Board.
6The amount reimbursed Panel members for their expenses shall be
7charged to the school district as part of any emergency
8financial assistance and incorporated as a part of the terms
9and conditions for repayment of such assistance or shall be
10deducted from the district's general State aid or
11evidence-based funding as provided in Section 1B-8.
12    The first meeting of the Panel shall be held at the call of
13the Chairman. The Panel may elect such other officers as it
14deems appropriate. The Panel shall prescribe the times and
15places for its meetings and the manner in which regular and
16special meetings may be called, and shall comply with the Open
17Meetings Act.
18    Two members of the Panel shall constitute a quorum, and the
19affirmative vote of 2 members shall be necessary for any
20decision or action to be taken by the Panel.
21    The Panel and the State Superintendent shall cooperate with
22each other in the exercise of their respective powers. The
23Panel shall report not later than September 1 annually to the
24State Board and the State Superintendent with respect to its
25activities and the condition of the school district for the
26previous fiscal year.

 

 

10000SB0001sam002- 133 -LRB100 06371 NHT 24463 a

1    Any Financial Oversight Panel established under this
2Article shall remain in existence for not less than 3 years nor
3more than 10 years from the date the State Board grants the
4petition under Section 1B-4. If after 3 years the school
5district has repaid all of its obligations resulting from
6emergency State financial assistance provided under this
7Article and has improved its financial situation, the board of
8education may, not more frequently than once in any 12 month
9period, petition the State Board to dissolve the Financial
10Oversight Panel, terminate the oversight responsibility, and
11remove the district's certification under Section 1A-8 as a
12district in financial difficulty. In acting on such a petition
13the State Board shall give additional weight to the
14recommendations of the State Superintendent and the Financial
15Oversight Panel.
16(Source: P.A. 88-618, eff. 9-9-94.)
 
17    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
18    Sec. 1B-6. General powers. The purpose of the Financial
19Oversight Panel shall be to exercise financial control over the
20board of education, and, when approved by the State Board and
21the State Superintendent of Education, to furnish financial
22assistance so that the board can provide public education
23within the board's jurisdiction while permitting the board to
24meet its obligations to its creditors and the holders of its
25notes and bonds. Except as expressly limited by this Article,

 

 

10000SB0001sam002- 134 -LRB100 06371 NHT 24463 a

1the Panel shall have all powers necessary to meet its
2responsibilities and to carry out its purposes and the purposes
3of this Article, including, but not limited to, the following
4powers:
5    (a) to sue and be sued;
6    (b) to provide for its organization and internal
7management;
8    (c) to appoint a Financial Administrator to serve as the
9chief executive officer of the Panel. The Financial
10Administrator may be an individual, partnership, corporation,
11including an accounting firm, or other entity determined by the
12Panel to be qualified to serve; and to appoint other officers,
13agents, and employees of the Panel, define their duties and
14qualifications and fix their compensation and employee
15benefits;
16    (d) to approve the local board of education appointments to
17the positions of treasurer in a Class I county school unit and
18in each school district which forms a part of a Class II county
19school unit but which no longer is subject to the jurisdiction
20and authority of a township treasurer or trustees of schools of
21a township because the district has withdrawn from the
22jurisdiction and authority of the township treasurer and the
23trustees of schools of the township or because those offices
24have been abolished as provided in subsection (b) or (c) of
25Section 5-1, and chief school business official, if such
26official is not the superintendent of the district. Either the

 

 

10000SB0001sam002- 135 -LRB100 06371 NHT 24463 a

1board or the Panel may remove such treasurer or chief school
2business official;
3    (e) to approve any and all bonds, notes, teachers orders,
4tax anticipation warrants, and other evidences of indebtedness
5prior to issuance or sale by the school district; and
6notwithstanding any other provision of The School Code, as now
7or hereafter amended, no bonds, notes, teachers orders, tax
8anticipation warrants or other evidences of indebtedness shall
9be issued or sold by the school district or be legally binding
10upon or enforceable against the local board of education unless
11and until the approval of the Panel has been received;
12    (f) to approve all property tax levies of the school
13district and require adjustments thereto as the Panel deems
14necessary or advisable;
15    (g) to require and approve a school district financial
16plan;
17    (h) to approve and require revisions of the school district
18budget;
19    (i) to approve all contracts and other obligations as the
20Panel deems necessary and appropriate;
21    (j) to authorize emergency State financial assistance,
22including requirements regarding the terms and conditions of
23repayment of such assistance, and to require the board of
24education to levy a separate local property tax, subject to the
25limitations of Section 1B-8, sufficient to repay such
26assistance consistent with the terms and conditions of

 

 

10000SB0001sam002- 136 -LRB100 06371 NHT 24463 a

1repayment and the district's approved financial plan and
2budget;
3    (k) to request the regional superintendent to make
4appointments to fill all vacancies on the local school board as
5provided in Section 10-10;
6    (l) to recommend dissolution or reorganization of the
7school district to the General Assembly if in the Panel's
8judgment the circumstances so require;
9    (m) to direct a phased reduction in the oversight
10responsibilities of the Financial Administrator and of the
11Panel as the circumstances permit;
12    (n) to determine the amount of emergency State financial
13assistance to be made available to the school district, and to
14establish an operating budget for the Panel to be supported by
15funds available from such assistance, with the assistance and
16the budget required to be approved by the State Superintendent;
17    (o) to procure insurance against any loss in such amounts
18and from such insurers as it deems necessary;
19    (p) to engage the services of consultants for rendering
20professional and technical assistance and advice on matters
21within the Panel's power;
22    (q) to contract for and to accept any gifts, grants or
23loans of funds or property or financial or other aid in any
24form from the federal government, State government, unit of
25local government, school district or any agency or
26instrumentality thereof, or from any other private or public

 

 

10000SB0001sam002- 137 -LRB100 06371 NHT 24463 a

1source, and to comply with the terms and conditions thereof;
2    (r) to pay the expenses of its operations based on the
3Panel's budget as approved by the State Superintendent from
4emergency financial assistance funds available to the district
5or from deductions from the district's general State aid or
6evidence-based funding;
7    (s) to do any and all things necessary or convenient to
8carry out its purposes and exercise the powers given to the
9Panel by this Article; and
10    (t) to recommend the creation of a school finance authority
11pursuant to Article 1F of this Code.
12(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
13    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
14    Sec. 1B-7. Financial Administrator; Powers and Duties. The
15Financial Administrator appointed by the Financial Oversight
16Panel shall serve as the Panel's chief executive officer. The
17Financial Administrator shall exercise the powers and duties
18required by the Panel, including but not limited to the
19following:
20    (a) to provide guidance and recommendations to the local
21board and officials of the school district in developing the
22district's financial plan and budget prior to board action;
23    (b) to direct the local board to reorganize its financial
24accounts, budgetary systems, and internal accounting and
25financial controls, in whatever manner the Panel deems

 

 

10000SB0001sam002- 138 -LRB100 06371 NHT 24463 a

1appropriate to achieve greater financial responsibility and to
2reduce financial inefficiency, and to provide technical
3assistance to aid the district in accomplishing the
4reorganization;
5    (c) to make recommendations to the Financial Oversight
6Panel concerning the school district's financial plan and
7budget, and all other matters within the scope of the Panel's
8authority;
9    (d) to prepare and recommend to the Panel a proposal for
10emergency State financial assistance for the district,
11including recommended terms and conditions of repayment, and an
12operations budget for the Panel to be funded from the emergency
13assistance or from deductions from the district's general State
14aid or evidence-based funding;
15    (e) to require the local board to prepare and submit
16preliminary staffing and budgetary analyses annually prior to
17February 1 in such manner and form as the Financial
18Administrator shall prescribe; and
19    (f) subject to the direction of the Panel, to do all other
20things necessary or convenient to carry out its purposes and
21exercise the powers given to the Panel under this Article.
22(Source: P.A. 88-618, eff. 9-9-94.)
 
23    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
24    Sec. 1B-8. There is created in the State Treasury a special
25fund to be known as the School District Emergency Financial

 

 

10000SB0001sam002- 139 -LRB100 06371 NHT 24463 a

1Assistance Fund (the "Fund"). The School District Emergency
2Financial Assistance Fund shall consist of appropriations,
3loan repayments, grants from the federal government, and
4donations from any public or private source. Moneys in the Fund
5may be appropriated only to the Illinois Finance Authority and
6the State Board for those purposes authorized under this
7Article and Articles 1F and 1H of this Code. The appropriation
8may be allocated and expended by the State Board for
9contractual services to provide technical assistance or
10consultation to school districts to assess their financial
11condition and to Financial Oversight Panels that petition for
12emergency financial assistance grants. The Illinois Finance
13Authority may provide loans to school districts which are the
14subject of an approved petition for emergency financial
15assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
16Neither the State Board of Education nor the Illinois Finance
17Authority may collect any fees for providing these services.
18    From the amount allocated to each such school district
19under this Article the State Board shall identify a sum
20sufficient to cover all approved costs of the Financial
21Oversight Panel established for the respective school
22district. If the State Board and State Superintendent of
23Education have not approved emergency financial assistance in
24conjunction with the appointment of a Financial Oversight
25Panel, the Panel's approved costs shall be paid from deductions
26from the district's general State aid or evidence-based

 

 

10000SB0001sam002- 140 -LRB100 06371 NHT 24463 a

1funding.
2    The Financial Oversight Panel may prepare and file with the
3State Superintendent a proposal for emergency financial
4assistance for the school district and for its operations
5budget. No expenditures from the Fund shall be authorized by
6the State Superintendent until he or she has approved the
7request of the Panel, either as submitted or in such lesser
8amount determined by the State Superintendent.
9    The maximum amount of an emergency financial assistance
10loan which may be allocated to any school district under this
11Article, including moneys necessary for the operations of the
12Panel, shall not exceed $4,000 times the number of pupils
13enrolled in the school district during the school year ending
14June 30 prior to the date of approval by the State Board of the
15petition for emergency financial assistance, as certified to
16the local board and the Panel by the State Superintendent. An
17emergency financial assistance grant shall not exceed $1,000
18times the number of such pupils. A district may receive both a
19loan and a grant.
20    The payment of an emergency State financial assistance
21grant or loan shall be subject to appropriation by the General
22Assembly. Payment of the emergency State financial assistance
23loan is subject to the applicable provisions of the Illinois
24Finance Authority Act. Emergency State financial assistance
25allocated and paid to a school district under this Article may
26be applied to any fund or funds from which the local board of

 

 

10000SB0001sam002- 141 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 142 -LRB100 06371 NHT 24463 a

1budget of the school district and may be made from any fund or
2funds of the district in which there are moneys available. An
3emergency financial assistance loan to the Panel or district
4shall not be considered part of the calculation of a district's
5debt for purposes of the limitation specified in Section 19-1
6of this Code. Default on repayment is subject to the Illinois
7Grant Funds Recovery Act. When moneys are repaid as provided
8herein they shall not be made available to the local board for
9further use as emergency financial assistance under this
10Article at any time thereafter. All repayments required to be
11made by a school district shall be received by the State Board
12and deposited in the School District Emergency Financial
13Assistance Fund.
14    In establishing the terms and conditions for the repayment
15obligation of the school district the Panel shall annually
16determine whether a separate local property tax levy is
17required. The board of any school district with a tax rate for
18educational purposes for the prior year of less than 120% of
19the maximum rate for educational purposes authorized by Section
2017-2 shall provide for a separate tax levy for emergency
21financial assistance repayment purposes. Such tax levy shall
22not be subject to referendum approval. The amount of the levy
23shall be equal to the amount necessary to meet the annual
24repayment obligations of the district as established by the
25Panel, or 20% of the amount levied for educational purposes for
26the prior year, whichever is less. However, no district shall

 

 

10000SB0001sam002- 143 -LRB100 06371 NHT 24463 a

1be required to levy the tax if the district's operating tax
2rate as determined under Section 18-8, or 18-8.05, or 18-8.15
3exceeds 200% of the district's tax rate for educational
4purposes for the prior year.
5(Source: P.A. 97-429, eff. 8-16-11.)
 
6    (105 ILCS 5/1C-1)
7    Sec. 1C-1. Purpose. The purpose of this Article is to
8permit greater flexibility and efficiency in the distribution
9and use of certain State funds available to local education
10agencies for the improvement of the quality of educational
11services pursuant to locally established priorities.
12    Through fiscal year 2017, this This Article does not apply
13to school districts having a population in excess of 500,000
14inhabitants.
15(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1689-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
17    (105 ILCS 5/1D-1)
18    Sec. 1D-1. Block grant funding.
19    (a) For fiscal year 1996 through fiscal year 2017 and each
20fiscal year thereafter, the State Board of Education shall
21award to a school district having a population exceeding
22500,000 inhabitants a general education block grant and an
23educational services block grant, determined as provided in
24this Section, in lieu of distributing to the district separate

 

 

10000SB0001sam002- 144 -LRB100 06371 NHT 24463 a

1State funding for the programs described in subsections (b) and
2(c). The provisions of this Section, however, do not apply to
3any federal funds that the district is entitled to receive. In
4accordance with Section 2-3.32, all block grants are subject to
5an audit. Therefore, block grant receipts and block grant
6expenditures shall be recorded to the appropriate fund code for
7the designated block grant.
8    (b) The general education block grant shall include the
9following programs: REI Initiative, Summer Bridges, Preschool
10At Risk, K-6 Comprehensive Arts, School Improvement Support,
11Urban Education, Scientific Literacy, Substance Abuse
12Prevention, Second Language Planning, Staff Development,
13Outcomes and Assessment, K-6 Reading Improvement, 7-12
14Continued Reading Improvement, Truants' Optional Education,
15Hispanic Programs, Agriculture Education, Parental Education,
16Prevention Initiative, Report Cards, and Criminal Background
17Investigations. Notwithstanding any other provision of law,
18all amounts paid under the general education block grant from
19State appropriations to a school district in a city having a
20population exceeding 500,000 inhabitants shall be appropriated
21and expended by the board of that district for any of the
22programs included in the block grant or any of the board's
23lawful purposes.
24    (c) The educational services block grant shall include the
25following programs: Regular and Vocational Transportation,
26State Lunch and Free Breakfast Program, Special Education

 

 

10000SB0001sam002- 145 -LRB100 06371 NHT 24463 a

1(Personnel, Transportation, Orphanage, Private Tuition),
2funding for children requiring special education services,
3Summer School, Educational Service Centers, and
4Administrator's Academy. This subsection (c) does not relieve
5the district of its obligation to provide the services required
6under a program that is included within the educational
7services block grant. It is the intention of the General
8Assembly in enacting the provisions of this subsection (c) to
9relieve the district of the administrative burdens that impede
10efficiency and accompany single-program funding. The General
11Assembly encourages the board to pursue mandate waivers
12pursuant to Section 2-3.25g.
13    The funding program included in the educational services
14block grant for funding for children requiring special
15education services in each fiscal year shall be treated in that
16fiscal year as a payment to the school district in respect of
17services provided or costs incurred in the prior fiscal year,
18calculated in each case as provided in this Section. Nothing in
19this Section shall change the nature of payments for any
20program that, apart from this Section, would be or, prior to
21adoption or amendment of this Section, was on the basis of a
22payment in a fiscal year in respect of services provided or
23costs incurred in the prior fiscal year, calculated in each
24case as provided in this Section.
25    (d) For fiscal year 1996 through fiscal year 2017 and each
26fiscal year thereafter, the amount of the district's block

 

 

10000SB0001sam002- 146 -LRB100 06371 NHT 24463 a

1grants shall be determined as follows: (i) with respect to each
2program that is included within each block grant, the district
3shall receive an amount equal to the same percentage of the
4current fiscal year appropriation made for that program as the
5percentage of the appropriation received by the district from
6the 1995 fiscal year appropriation made for that program, and
7(ii) the total amount that is due the district under the block
8grant shall be the aggregate of the amounts that the district
9is entitled to receive for the fiscal year with respect to each
10program that is included within the block grant that the State
11Board of Education shall award the district under this Section
12for that fiscal year. In the case of the Summer Bridges
13program, the amount of the district's block grant shall be
14equal to 44% of the amount of the current fiscal year
15appropriation made for that program.
16    (e) The district is not required to file any application or
17other claim in order to receive the block grants to which it is
18entitled under this Section. The State Board of Education shall
19make payments to the district of amounts due under the
20district's block grants on a schedule determined by the State
21Board of Education.
22    (f) A school district to which this Section applies shall
23report to the State Board of Education on its use of the block
24grants in such form and detail as the State Board of Education
25may specify. In addition, the report must include the following
26description for the district, which must also be reported to

 

 

10000SB0001sam002- 147 -LRB100 06371 NHT 24463 a

1the General Assembly: block grant allocation and expenditures
2by program; population and service levels by program; and
3administrative expenditures by program. The State Board of
4Education shall ensure that the reporting requirements for the
5district are the same as for all other school districts in this
6State.
7    (g) Through fiscal year 2017, this This paragraph provides
8for the treatment of block grants under Article 1C for purposes
9of calculating the amount of block grants for a district under
10this Section. Those block grants under Article 1C are, for this
11purpose, treated as included in the amount of appropriation for
12the various programs set forth in paragraph (b) above. The
13appropriation in each current fiscal year for each block grant
14under Article 1C shall be treated for these purposes as
15appropriations for the individual program included in that
16block grant. The proportion of each block grant so allocated to
17each such program included in it shall be the proportion which
18the appropriation for that program was of all appropriations
19for such purposes now in that block grant, in fiscal 1995.
20    Payments to the school district under this Section with
21respect to each program for which payments to school districts
22generally, as of the date of this amendatory Act of the 92nd
23General Assembly, are on a reimbursement basis shall continue
24to be made to the district on a reimbursement basis, pursuant
25to the provisions of this Code governing those programs.
26    (h) Notwithstanding any other provision of law, any school

 

 

10000SB0001sam002- 148 -LRB100 06371 NHT 24463 a

1district receiving a block grant under this Section may
2classify all or a portion of the funds that it receives in a
3particular fiscal year from any block grant authorized under
4this Code or from general State aid pursuant to Section 18-8.05
5of this Code (other than supplemental general State aid) as
6funds received in connection with any funding program for which
7it is entitled to receive funds from the State in that fiscal
8year (including, without limitation, any funding program
9referred to in subsection (c) of this Section), regardless of
10the source or timing of the receipt. The district may not
11classify more funds as funds received in connection with the
12funding program than the district is entitled to receive in
13that fiscal year for that program. Any classification by a
14district must be made by a resolution of its board of
15education. The resolution must identify the amount of any block
16grant or general State aid to be classified under this
17subsection (h) and must specify the funding program to which
18the funds are to be treated as received in connection
19therewith. This resolution is controlling as to the
20classification of funds referenced therein. A certified copy of
21the resolution must be sent to the State Superintendent of
22Education. The resolution shall still take effect even though a
23copy of the resolution has not been sent to the State
24Superintendent of Education in a timely manner. No
25classification under this subsection (h) by a district shall
26affect the total amount or timing of money the district is

 

 

10000SB0001sam002- 149 -LRB100 06371 NHT 24463 a

1entitled to receive under this Code. No classification under
2this subsection (h) by a district shall in any way relieve the
3district from or affect any requirements that otherwise would
4apply with respect to the block grant as provided in this
5Section, including any accounting of funds by source, reporting
6expenditures by original source and purpose, reporting
7requirements, or requirements of provision of services.
8(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
997-813, eff. 7-13-12.)
 
10    (105 ILCS 5/1E-20)
11    (This Section scheduled to be repealed in accordance with
12105 ILCS 5/1E-165)
13    Sec. 1E-20. Members of Authority; meetings.
14    (a) When a petition for a School Finance Authority is
15allowed by the State Board under Section 1E-15 of this Code,
16the State Superintendent shall within 10 days thereafter
17appoint 5 members to serve on a School Finance Authority for
18the district. Of the initial members, 2 shall be appointed to
19serve a term of 2 years and 3 shall be appointed to serve a term
20of 3 years. Thereafter, each member shall serve for a term of 3
21years and until his or her successor has been appointed. The
22State Superintendent shall designate one of the members of the
23Authority to serve as its Chairperson. In the event of vacancy
24or resignation, the State Superintendent shall, within 10 days
25after receiving notice, appoint a successor to serve out that

 

 

10000SB0001sam002- 150 -LRB100 06371 NHT 24463 a

1member's term. The State Superintendent may remove a member for
2incompetence, malfeasance, neglect of duty, or other just
3cause.
4    Members of the Authority shall be selected primarily on the
5basis of their experience and education in financial
6management, with consideration given to persons knowledgeable
7in education finance. Two members of the Authority shall be
8residents of the school district that the Authority serves. A
9member of the Authority may not be a member of the district's
10school board or an employee of the district nor may a member
11have a direct financial interest in the district.
12    Authority members shall serve without compensation, but
13may be reimbursed by the State Board for travel and other
14necessary expenses incurred in the performance of their
15official duties. Unless paid from bonds issued under Section
161E-65 of this Code, the amount reimbursed members for their
17expenses shall be charged to the school district as part of any
18emergency financial assistance and incorporated as a part of
19the terms and conditions for repayment of the assistance or
20shall be deducted from the district's general State aid or
21evidence-based funding as provided in Section 1B-8 of this
22Code.
23    The Authority may elect such officers as it deems
24appropriate.
25    (b) The first meeting of the Authority shall be held at the
26call of the Chairperson. The Authority shall prescribe the

 

 

10000SB0001sam002- 151 -LRB100 06371 NHT 24463 a

1times and places for its meetings and the manner in which
2regular and special meetings may be called and shall comply
3with the Open Meetings Act.
4    Three members of the Authority shall constitute a quorum.
5When a vote is taken upon any measure before the Authority, a
6quorum being present, a majority of the votes of the members
7voting on the measure shall determine the outcome.
8(Source: P.A. 92-547, eff. 6-13-02.)
 
9    (105 ILCS 5/1F-20)
10(This Section scheduled to be repealed in accordance with 105
11ILCS 5/1F-165)
12    Sec. 1F-20. Members of Authority; meetings.
13    (a) Upon establishment of a School Finance Authority under
14Section 1F-15 of this Code, the State Superintendent shall
15within 15 days thereafter appoint 5 members to serve on a
16School Finance Authority for the district. Of the initial
17members, 2 shall be appointed to serve a term of 2 years and 3
18shall be appointed to serve a term of 3 years. Thereafter, each
19member shall serve for a term of 3 years and until his or her
20successor has been appointed. The State Superintendent shall
21designate one of the members of the Authority to serve as its
22Chairperson. In the event of vacancy or resignation, the State
23Superintendent shall, within 10 days after receiving notice,
24appoint a successor to serve out that member's term. The State
25Superintendent may remove a member for incompetence,

 

 

10000SB0001sam002- 152 -LRB100 06371 NHT 24463 a

1malfeasance, neglect of duty, or other just cause.
2    Members of the Authority shall be selected primarily on the
3basis of their experience and education in financial
4management, with consideration given to persons knowledgeable
5in education finance. Two members of the Authority shall be
6residents of the school district that the Authority serves. A
7member of the Authority may not be a member of the district's
8school board or an employee of the district nor may a member
9have a direct financial interest in the district.
10    Authority members shall be paid a stipend approved by the
11State Superintendent of not more than $100 per meeting and may
12be reimbursed by the State Board for travel and other necessary
13expenses incurred in the performance of their official duties.
14Unless paid from bonds issued under Section 1F-65 of this Code,
15the amount reimbursed members for their expenses shall be
16charged to the school district as part of any emergency
17financial assistance and incorporated as a part of the terms
18and conditions for repayment of the assistance or shall be
19deducted from the district's general State aid or
20evidence-based funding as provided in Section 1B-8 of this
21Code.
22    The Authority may elect such officers as it deems
23appropriate.
24    (b) The first meeting of the Authority shall be held at the
25call of the Chairperson. The Authority shall prescribe the
26times and places for its meetings and the manner in which

 

 

10000SB0001sam002- 153 -LRB100 06371 NHT 24463 a

1regular and special meetings may be called and shall comply
2with the Open Meetings Act.
3    Three members of the Authority shall constitute a quorum.
4When a vote is taken upon any measure before the Authority, a
5quorum being present, a majority of the votes of the members
6voting on the measure shall determine the outcome.
7(Source: P.A. 94-234, eff. 7-1-06.)
 
8    (105 ILCS 5/1F-62)
9(This Section scheduled to be repealed in accordance with 105
10ILCS 5/1F-165)
11    Sec. 1F-62. School District Emergency Financial Assistance
12Fund; grants and loans.
13    (a) Moneys in the School District Emergency Financial
14Assistance Fund established under Section 1B-8 of this Code may
15be allocated and expended by the State Board as grants to
16provide technical and consulting services to school districts
17to assess their financial condition and by the Illinois Finance
18Authority for emergency financial assistance loans to a School
19Finance Authority that petitions for emergency financial
20assistance. An emergency financial assistance loan to a School
21Finance Authority or borrowing from sources other than the
22State shall not be considered as part of the calculation of a
23district's debt for purposes of the limitation specified in
24Section 19-1 of this Code. From the amount allocated to each
25School Finance Authority, the State Board shall identify a sum

 

 

10000SB0001sam002- 154 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 155 -LRB100 06371 NHT 24463 a

1exceed $1,000 times the number of such pupils. A district may
2receive both a loan and a grant.
3    (c) The payment of a State emergency financial assistance
4grant or loan shall be subject to appropriation by the General
5Assembly. State emergency financial assistance allocated and
6paid to a School Finance Authority under this Article may be
7applied to any fund or funds from which the School Finance
8Authority is authorized to make expenditures by law.
9    (d) Any State emergency financial assistance proposed by
10the School Finance Authority and approved by the State
11Superintendent may be paid in its entirety during the initial
12year of the School Finance Authority's existence or spread in
13equal or declining amounts over a period of years not to exceed
14the period of the School Finance Authority's existence. The
15State Superintendent shall not approve any loan to the School
16Finance Authority unless the School Finance Authority has been
17unable to borrow sufficient funds to operate the district.
18    All loan payments made from the School District Emergency
19Financial Assistance Fund to a School Finance Authority shall
20be required to be repaid not later than the date the School
21Finance Authority ceases to exist, with simple interest over
22the term of the loan at a rate equal to 50% of the one-year
23Constant Maturity Treasury (CMT) yield as last published by the
24Board of Governors of the Federal Reserve System before the
25date on which the School Finance Authority's loan is approved
26by the State Board.

 

 

10000SB0001sam002- 156 -LRB100 06371 NHT 24463 a

1    The School Finance Authority shall establish and the
2Illinois Finance Authority shall approve the terms and
3conditions of the loan, including the schedule of repayments.
4The schedule shall provide for repayments commencing July 1 of
5each year or upon each fiscal year's receipt of moneys from a
6tax levy for emergency financial assistance. Repayment shall be
7incorporated into the annual budget of the district and may be
8made from any fund or funds of the district in which there are
9moneys available. Default on repayment is subject to the
10Illinois Grant Funds Recovery Act. When moneys are repaid as
11provided in this Section, they shall not be made available to
12the School Finance Authority for further use as emergency
13financial assistance under this Article at any time thereafter.
14All repayments required to be made by a School Finance
15Authority shall be received by the State Board and deposited in
16the School District Emergency Financial Assistance Fund.
17    In establishing the terms and conditions for the repayment
18obligation of the School Finance Authority, the School Finance
19Authority shall annually determine whether a separate local
20property tax levy is required to meet that obligation. The
21School Finance Authority shall provide for a separate tax levy
22for emergency financial assistance repayment purposes. This
23tax levy shall not be subject to referendum approval. The
24amount of the levy shall not exceed the amount necessary to
25meet the annual emergency financial repayment obligations of
26the district, including principal and interest, as established

 

 

10000SB0001sam002- 157 -LRB100 06371 NHT 24463 a

1by the School Finance Authority.
2(Source: P.A. 94-234, eff. 7-1-06.)
 
3    (105 ILCS 5/1H-20)
4    Sec. 1H-20. Members of Panel; meetings.
5    (a) Upon establishment of a Financial Oversight Panel under
6Section 1H-15 of this Code, the State Superintendent shall
7within 15 working days thereafter appoint 5 members to serve on
8a Financial Oversight Panel for the district. Members appointed
9to the Panel shall serve at the pleasure of the State
10Superintendent. The State Superintendent shall designate one
11of the members of the Panel to serve as its Chairperson. In the
12event of vacancy or resignation, the State Superintendent
13shall, within 10 days after receiving notice, appoint a
14successor to serve out that member's term.
15    (b) Members of the Panel shall be selected primarily on the
16basis of their experience and education in financial
17management, with consideration given to persons knowledgeable
18in education finance. Two members of the Panel shall be
19residents of the school district that the Panel serves. A
20member of the Panel may not be a member of the district's
21school board or an employee of the district nor may a member
22have a direct financial interest in the district.
23    (c) Panel members may be reimbursed by the State Board for
24travel and other necessary expenses incurred in the performance
25of their official duties. The amount reimbursed members for

 

 

10000SB0001sam002- 158 -LRB100 06371 NHT 24463 a

1their expenses shall be charged to the school district as part
2of any emergency financial assistance and incorporated as a
3part of the terms and conditions for repayment of the
4assistance or shall be deducted from the district's general
5State aid or evidence-based funding as provided in Section
61H-65 of this Code.
7    (d) With the exception of the chairperson, who shall be
8designated as provided in subsection (a) of this Section, the
9Panel may elect such officers as it deems appropriate.
10    (e) The first meeting of the Panel shall be held at the
11call of the Chairperson. The Panel shall prescribe the times
12and places for its meetings and the manner in which regular and
13special meetings may be called and shall comply with the Open
14Meetings Act. The Panel shall also comply with the Freedom of
15Information Act.
16    (f) Three members of the Panel shall constitute a quorum. A
17majority of members present is required to pass a measure.
18(Source: P.A. 97-429, eff. 8-16-11.)
 
19    (105 ILCS 5/1H-70)
20    Sec. 1H-70. Tax anticipation warrants, tax anticipation
21notes, revenue anticipation certificates or notes, general
22State aid or evidence-based funding anticipation certificates,
23and lines of credit. With the approval of the State
24Superintendent and provided that the district is unable to
25secure short-term financing after 3 attempts, a Panel shall

 

 

10000SB0001sam002- 159 -LRB100 06371 NHT 24463 a

1have the same power as a district to do the following:
2        (1) issue tax anticipation warrants under the
3    provisions of Section 17-16 of this Code against taxes
4    levied by either the school board or the Panel pursuant to
5    Section 1H-25 of this Code;
6        (2) issue tax anticipation notes under the provisions
7    of the Tax Anticipation Note Act against taxes levied by
8    either the school board or the Panel pursuant to Section
9    1H-25 of this Code;
10        (3) issue revenue anticipation certificates or notes
11    under the provisions of the Revenue Anticipation Act;
12        (4) issue general State aid or evidence-based funding
13    anticipation certificates under the provisions of Section
14    18-18 of this Code; and
15        (5) establish and utilize lines of credit under the
16    provisions of Section 17-17 of this Code.
17    Tax anticipation warrants, tax anticipation notes, revenue
18anticipation certificates or notes, general State aid or
19evidence-based funding anticipation certificates, and lines of
20credit are considered borrowing from sources other than the
21State and are subject to Section 1H-65 of this Code.
22(Source: P.A. 97-429, eff. 8-16-11.)
 
23    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
24    Sec. 2-3.33. Recomputation of claims. To recompute within
253 years from the final date for filing of a claim any claim for

 

 

10000SB0001sam002- 160 -LRB100 06371 NHT 24463 a

1general State aid reimbursement to any school district and one
2year from the final date for filing of a claim for
3evidence-based funding if the claim has been found to be
4incorrect and to adjust subsequent claims accordingly, and to
5recompute and adjust any such claims within 6 years from the
6final date for filing when there has been an adverse court or
7administrative agency decision on the merits affecting the tax
8revenues of the school district. However, no such adjustment
9shall be made regarding equalized assessed valuation unless the
10district's equalized assessed valuation is changed by greater
11than $250,000 or 2%. Any adjustments for claims recomputed for
12the 2016-2017 school year and prior school years shall be
13applied to the apportionment of evidence-based funding in
14Section 18-8.15 of this Code beginning in the 2017-2018 school
15year and thereafter. However, the recomputation of a claim for
16evidence-based funding for a school district shall not require
17the recomputation of claims for all districts, and the State
18Board of Education shall only make recomputations of
19evidence-based funding for those districts where an adjustment
20is required.
21    Except in the case of an adverse court or administrative
22agency decision, no recomputation of a State aid claim shall be
23made pursuant to this Section as a result of a reduction in the
24assessed valuation of a school district from the assessed
25valuation of the district reported to the State Board of
26Education by the Department of Revenue under Section 18-8.05 or

 

 

10000SB0001sam002- 161 -LRB100 06371 NHT 24463 a

118-8.15 of this Code unless the requirements of Section 16-15
2of the Property Tax Code and Section 2-3.84 of this Code are
3complied with in all respects.
4    This paragraph applies to all requests for recomputation of
5a general State aid or evidence-based funding claim received
6after June 30, 2003. In recomputing a general State aid or
7evidence-based funding claim that was originally calculated
8using an extension limitation equalized assessed valuation
9under paragraph (3) of subsection (G) of Section 18-8.05 of
10this Code or Section 18-8.15 of this Code, a qualifying
11reduction in equalized assessed valuation shall be deducted
12from the extension limitation equalized assessed valuation
13that was used in calculating the original claim.
14    From the total amount of general State aid or
15evidence-based funding to be provided to districts,
16adjustments as a result of recomputation under this Section
17together with adjustments under Section 2-3.84 must not exceed
18$25 million, in the aggregate for all districts under both
19Sections combined, of the general State aid or evidence-based
20funding appropriation in any fiscal year; if necessary, amounts
21shall be prorated among districts. If it is necessary to
22prorate claims under this paragraph, then that portion of each
23prorated claim that is approved but not paid in the current
24fiscal year may be resubmitted as a valid claim in the
25following fiscal year.
26(Source: P.A. 93-845, eff. 7-30-04.)
 

 

 

10000SB0001sam002- 162 -LRB100 06371 NHT 24463 a

1    (105 ILCS 5/2-3.51.5)
2    Sec. 2-3.51.5. School Safety and Educational Improvement
3Block Grant Program. To improve the level of education and
4safety of students from kindergarten through grade 12 in school
5districts and State-recognized, non-public schools. The State
6Board of Education is authorized to fund a School Safety and
7Educational Improvement Block Grant Program.
8    (1) For school districts, the program shall provide funding
9for school safety, textbooks and software, electronic
10textbooks and the technological equipment necessary to gain
11access to and use electronic textbooks, teacher training and
12curriculum development, school improvements, school report
13cards under Section 10-17a, and criminal history records checks
14under Sections 10-21.9 and 34-18.5. For State-recognized,
15non-public schools, the program shall provide funding for
16secular textbooks and software, criminal history records
17checks, and health and safety mandates to the extent that the
18funds are expended for purely secular purposes. A school
19district or laboratory school as defined in Section 18-8, or
2018-8.05, or 18-8.15 is not required to file an application in
21order to receive the categorical funding to which it is
22entitled under this Section. Funds for the School Safety and
23Educational Improvement Block Grant Program shall be
24distributed to school districts and laboratory schools based on
25the prior year's best 3 months average daily attendance. Funds

 

 

10000SB0001sam002- 163 -LRB100 06371 NHT 24463 a

1for the School Safety and Educational Improvement Block Grant
2Program shall be distributed to State-recognized, non-public
3schools based on the average daily attendance figure for the
4previous school year provided to the State Board of Education.
5The State Board of Education shall develop an application that
6requires State-recognized, non-public schools to submit
7average daily attendance figures. A State-recognized,
8non-public school must submit the application and average daily
9attendance figure prior to receiving funds under this Section.
10The State Board of Education shall promulgate rules and
11regulations necessary for the implementation of this program.
12    (2) Distribution of moneys to school districts and
13State-recognized, non-public schools shall be made in 2
14semi-annual installments, one payment on or before October 30,
15and one payment prior to April 30, of each fiscal year.
16    (3) Grants under the School Safety and Educational
17Improvement Block Grant Program shall be awarded provided there
18is an appropriation for the program, and funding levels for
19each district shall be prorated according to the amount of the
20appropriation.
21    (4) The provisions of this Section are in the public
22interest, are for the public benefit, and serve secular public
23purposes.
24(Source: P.A. 98-972, eff. 8-15-14.)
 
25    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)

 

 

10000SB0001sam002- 164 -LRB100 06371 NHT 24463 a

1    Sec. 2-3.66. Truants' alternative and optional education
2programs. To establish projects to offer modified
3instructional programs or other services designed to prevent
4students from dropping out of school, including programs
5pursuant to Section 2-3.41, and to serve as a part time or full
6time option in lieu of regular school attendance and to award
7grants to local school districts, educational service regions
8or community college districts from appropriated funds to
9assist districts in establishing such projects. The education
10agency may operate its own program or enter into a contract
11with another not-for-profit entity to implement the program.
12The projects shall allow dropouts, up to and including age 21,
13potential dropouts, including truants, uninvolved, unmotivated
14and disaffected students, as defined by State Board of
15Education rules and regulations, to enroll, as an alternative
16to regular school attendance, in an optional education program
17which may be established by school board policy and is in
18conformance with rules adopted by the State Board of Education.
19Truants' Alternative and Optional Education programs funded
20pursuant to this Section shall be planned by a student, the
21student's parents or legal guardians, unless the student is 18
22years or older, and school officials and shall culminate in an
23individualized optional education plan. Such plan shall focus
24on academic or vocational skills, or both, and may include, but
25not be limited to, evening school, summer school, community
26college courses, adult education, preparation courses for high

 

 

10000SB0001sam002- 165 -LRB100 06371 NHT 24463 a

1school equivalency testing, vocational training, work
2experience, programs to enhance self concept and parenting
3courses. School districts which are awarded grants pursuant to
4this Section shall be authorized to provide day care services
5to children of students who are eligible and desire to enroll
6in programs established and funded under this Section, but only
7if and to the extent that such day care is necessary to enable
8those eligible students to attend and participate in the
9programs and courses which are conducted pursuant to this
10Section. School districts and regional offices of education may
11claim general State aid under Section 18-8.05 or evidence-based
12funding under Section 18-8.15 for students enrolled in truants'
13alternative and optional education programs, provided that
14such students are receiving services that are supplemental to a
15program leading to a high school diploma and are otherwise
16eligible to be claimed for general State aid under Section
1718-8.05 or evidence-based funding under Section 18-8.15, as
18applicable.
19(Source: P.A. 98-718, eff. 1-1-15.)
 
20    (105 ILCS 5/2-3.66b)
21    Sec. 2-3.66b. IHOPE Program.
22    (a) There is established the Illinois Hope and Opportunity
23Pathways through Education (IHOPE) Program. The State Board of
24Education shall implement and administer the IHOPE Program. The
25goal of the IHOPE Program is to develop a comprehensive system

 

 

10000SB0001sam002- 166 -LRB100 06371 NHT 24463 a

1in this State to re-enroll significant numbers of high school
2dropouts in programs that will enable them to earn their high
3school diploma.
4    (b) The IHOPE Program shall award grants, subject to
5appropriation for this purpose, to educational service regions
6and a school district organized under Article 34 of this Code
7from appropriated funds to assist in establishing
8instructional programs and other services designed to
9re-enroll high school dropouts. From any funds appropriated for
10the IHOPE Program, the State Board of Education may use up to
115% for administrative costs, including the performance of a
12program evaluation and the hiring of staff to implement and
13administer the program.
14    The IHOPE Program shall provide incentive grant funds for
15regional offices of education and a school district organized
16under Article 34 of this Code to develop partnerships with
17school districts, public community colleges, and community
18groups to build comprehensive plans to re-enroll high school
19dropouts in their regions or districts.
20    Programs funded through the IHOPE Program shall allow high
21school dropouts, up to and including age 21 notwithstanding
22Section 26-2 of this Code, to re-enroll in an educational
23program in conformance with rules adopted by the State Board of
24Education. Programs may include without limitation
25comprehensive year-round programming, evening school, summer
26school, community college courses, adult education, vocational

 

 

10000SB0001sam002- 167 -LRB100 06371 NHT 24463 a

1training, work experience, programs to enhance self-concept,
2and parenting courses. Any student in the IHOPE Program who
3wishes to earn a high school diploma must meet the
4prerequisites to receiving a high school diploma specified in
5Section 27-22 of this Code and any other graduation
6requirements of the student's district of residence. Any
7student who successfully completes the requirements for his or
8her graduation shall receive a diploma identifying the student
9as graduating from his or her district of residence.
10    (c) In order to be eligible for funding under the IHOPE
11Program, an interested regional office of education or a school
12district organized under Article 34 of this Code shall develop
13an IHOPE Plan to be approved by the State Board of Education.
14The State Board of Education shall develop rules for the IHOPE
15Program that shall set forth the requirements for the
16development of the IHOPE Plan. Each Plan shall involve school
17districts, public community colleges, and key community
18programs that work with high school dropouts located in an
19educational service region or the City of Chicago before the
20Plan is sent to the State Board for approval. No funds may be
21distributed to a regional office of education or a school
22district organized under Article 34 of this Code until the
23State Board has approved the Plan.
24    (d) A regional office of education or a school district
25organized under Article 34 of this Code may operate its own
26program funded by the IHOPE Program or enter into a contract

 

 

10000SB0001sam002- 168 -LRB100 06371 NHT 24463 a

1with other not-for-profit entities, including school
2districts, public community colleges, and not-for-profit
3community-based organizations, to operate a program.
4    A regional office of education or a school district
5organized under Article 34 of this Code that receives an IHOPE
6grant from the State Board of Education may provide funds under
7a sub-grant, as specified in the IHOPE Plan, to other
8not-for-profit entities to provide services according to the
9IHOPE Plan that was developed. These other entities may include
10school districts, public community colleges, or not-for-profit
11community-based organizations or a cooperative partnership
12among these entities.
13    (e) In order to distribute funding based upon the need to
14ensure delivery of programs that will have the greatest impact,
15IHOPE Program funding must be distributed based upon the
16proportion of dropouts in the educational service region or
17school district, in the case of a school district organized
18under Article 34 of this Code, to the total number of dropouts
19in this State. This formula shall employ the dropout data
20provided by school districts to the State Board of Education.
21    A regional office of education or a school district
22organized under Article 34 of this Code may claim State aid
23under Section 18-8.05 or 18-8.15 of this Code for students
24enrolled in a program funded by the IHOPE Program, provided
25that the State Board of Education has approved the IHOPE Plan
26and that these students are receiving services that are meeting

 

 

10000SB0001sam002- 169 -LRB100 06371 NHT 24463 a

1the requirements of Section 27-22 of this Code for receipt of a
2high school diploma and are otherwise eligible to be claimed
3for general State aid under Section 18-8.05 of this Code or
4evidence-based funding under Section 18-8.15 of this Code,
5including provisions related to the minimum number of days of
6pupil attendance pursuant to Section 10-19 of this Code and the
7minimum number of daily hours of school work and any exceptions
8thereto as defined by the State Board of Education in rules.
9    (f) IHOPE categories of programming may include the
10following:
11        (1) Full-time programs that are comprehensive,
12    year-round programs.
13        (2) Part-time programs combining work and study
14    scheduled at various times that are flexible to the needs
15    of students.
16        (3) Online programs and courses in which students take
17    courses and complete on-site, supervised tests that
18    measure the student's mastery of a specific course needed
19    for graduation. Students may take courses online and earn
20    credit or students may prepare to take supervised tests for
21    specific courses for credit leading to receipt of a high
22    school diploma.
23        (4) Dual enrollment in which students attend high
24    school classes in combination with community college
25    classes or students attend community college classes while
26    simultaneously earning high school credit and eventually a

 

 

10000SB0001sam002- 170 -LRB100 06371 NHT 24463 a

1    high school diploma.
2    (g) In order to have successful comprehensive programs
3re-enrolling and graduating low-skilled high school dropouts,
4programs funded through the IHOPE Program shall include all of
5the following components:
6        (1) Small programs (70 to 100 students) at a separate
7    school site with a distinct identity. Programs may be
8    larger with specific need and justification, keeping in
9    mind that it is crucial to keep programs small to be
10    effective.
11        (2) Specific performance-based goals and outcomes and
12    measures of enrollment, attendance, skills, credits,
13    graduation, and the transition to college, training, and
14    employment.
15        (3) Strong, experienced leadership and teaching staff
16    who are provided with ongoing professional development.
17        (4) Voluntary enrollment.
18        (5) High standards for student learning, integrating
19    work experience, and education, including during the
20    school year and after school, and summer school programs
21    that link internships, work, and learning.
22        (6) Comprehensive programs providing extensive support
23    services.
24        (7) Small teams of students supported by full-time paid
25    mentors who work to retain and help those students
26    graduate.

 

 

10000SB0001sam002- 171 -LRB100 06371 NHT 24463 a

1        (8) A comprehensive technology learning center with
2    Internet access and broad-based curriculum focusing on
3    academic and career subject areas.
4        (9) Learning opportunities that incorporate action
5    into study.
6    (h) Programs funded through the IHOPE Program must report
7data to the State Board of Education as requested. This
8information shall include, but is not limited to, student
9enrollment figures, attendance information, course completion
10data, graduation information, and post-graduation information,
11as available.
12    (i) Rules must be developed by the State Board of Education
13to set forth the fund distribution process to regional offices
14of education and a school district organized under Article 34
15of this Code, the planning and the conditions upon which an
16IHOPE Plan would be approved by State Board, and other rules to
17develop the IHOPE Program.
18(Source: P.A. 96-106, eff. 7-30-09.)
 
19    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
20    Sec. 2-3.84. In calculating the amount of State aid to be
21apportioned to the various school districts in this State, the
22State Board of Education shall incorporate and deduct the total
23aggregate adjustments to assessments made by the State Property
24Tax Appeal Board or Cook County Board of Appeals, as reported
25pursuant to Section 16-15 of the Property Tax Code or Section

 

 

10000SB0001sam002- 172 -LRB100 06371 NHT 24463 a

1129.1 of the Revenue Act of 1939 by the Department of Revenue,
2from the equalized assessed valuation that is otherwise to be
3utilized in the initial calculation.
4    From the total amount of general State aid or
5evidence-based funding to be provided to districts,
6adjustments under this Section together with adjustments as a
7result of recomputation under Section 2-3.33 must not exceed
8$25 million, in the aggregate for all districts under both
9Sections combined, of the general State aid or evidence-based
10funding appropriation in any fiscal year; if necessary, amounts
11shall be prorated among districts. If it is necessary to
12prorate claims under this paragraph, then that portion of each
13prorated claim that is approved but not paid in the current
14fiscal year may be resubmitted as a valid claim in the
15following fiscal year.
16(Source: P.A. 93-845, eff. 7-30-04.)
 
17    (105 ILCS 5/2-3.109a)
18    Sec. 2-3.109a. Laboratory schools grant eligibility. A
19laboratory school as defined in Section 18-8 or 18-8.15 may
20apply for and be eligible to receive, subject to the same
21restrictions applicable to school districts, any grant
22administered by the State Board of Education that is available
23for school districts.
24(Source: P.A. 90-566, eff. 1-2-98.)
 

 

 

10000SB0001sam002- 173 -LRB100 06371 NHT 24463 a

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
26the plan has not been completed and that the violations have

 

 

10000SB0001sam002- 174 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 175 -LRB100 06371 NHT 24463 a

1timely manner pursuant to subsection (b) of this Section. The
2inspection must be at no cost to the school district.
3    (d) If a municipality or, in the case of an unincorporated
4area, a county or, if applicable, a fire protection district
5wishes to perform new construction inspections under the
6jurisdiction of a regional superintendent, then the entity must
7register this wish with the regional superintendent. These
8inspections must be based on the building code authorized in
9Section 2-3.12 of this Code. The inspections must be at no cost
10to the school district.
11(Source: P.A. 96-734, eff. 8-25-09.)
 
12    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
13    Sec. 7-14A. Annexation compensation. There shall be no
14accounting made after a mere change in boundaries when no new
15district is created, except that those districts whose
16enrollment increases by 90% or more as a result of annexing
17territory detached from another district pursuant to this
18Article are eligible for supplementary State aid payments in
19accordance with Section 11E-135 of this Code. Eligible annexing
20districts shall apply to the State Board of Education for
21supplementary State aid payments by submitting enrollment
22figures for the year immediately preceding and the year
23immediately following the effective date of the boundary change
24for both the district gaining territory and the district losing
25territory. Copies of any intergovernmental agreements between

 

 

10000SB0001sam002- 176 -LRB100 06371 NHT 24463 a

1the district gaining territory and the district losing
2territory detailing any transfer of fund balances and staff
3must also be submitted. In all instances of changes in
4boundaries, the district losing territory shall not count the
5average daily attendance of pupils living in the territory
6during the year preceding the effective date of the boundary
7change in its claim for reimbursement under Section 18-8.05 or
818-8.15 of this Code for the school year following the
9effective date of the change in boundaries and the district
10receiving the territory shall count the average daily
11attendance of pupils living in the territory during the year
12preceding the effective date of the boundary change in its
13claim for reimbursement under Section 18-8.05 or 18-8.15 of
14this Code for the school year following the effective date of
15the change in boundaries. The changes to this Section made by
16this amendatory Act of the 95th General Assembly are intended
17to be retroactive and applicable to any annexation taking
18effect on or after July 1, 2004.
19(Source: P.A. 99-657, eff. 7-28-16.)
 
20    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
21    Sec. 10-17a. State, school district, and school report
22cards.
23    (1) By October 31, 2013 and October 31 of each subsequent
24school year, the State Board of Education, through the State
25Superintendent of Education, shall prepare a State report card,

 

 

10000SB0001sam002- 177 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 178 -LRB100 06371 NHT 24463 a

1    resources (including Career Technical Education teachers),
2    before and after school programs, extracurricular
3    activities, subjects in which elective classes are
4    offered, health and wellness initiatives (including the
5    average number of days of Physical Education per week per
6    student), approved programs of study, awards received,
7    community partnerships, and special programs such as
8    programming for the gifted and talented, students with
9    disabilities, and work-study students;
10        (C) student outcomes, including, where applicable, the
11    percentage of students deemed proficient on assessments of
12    State standards, the percentage of students in the eighth
13    grade who pass Algebra, the percentage of students enrolled
14    in post-secondary institutions (including colleges,
15    universities, community colleges, trade/vocational
16    schools, and training programs leading to career
17    certification within 2 semesters of high school
18    graduation), the percentage of students graduating from
19    high school who are college and career ready, and the
20    percentage of graduates enrolled in community colleges,
21    colleges, and universities who are in one or more courses
22    that the community college, college, or university
23    identifies as a developmental course;
24        (D) student progress, including, where applicable, the
25    percentage of students in the ninth grade who have earned 5
26    credits or more without failing more than one core class, a

 

 

10000SB0001sam002- 179 -LRB100 06371 NHT 24463 a

1    measure of students entering kindergarten ready to learn, a
2    measure of growth, and the percentage of students who enter
3    high school on track for college and career readiness;
4        (E) the school environment, including, where
5    applicable, the percentage of students with less than 10
6    absences in a school year, the percentage of teachers with
7    less than 10 absences in a school year for reasons other
8    than professional development, leaves taken pursuant to
9    the federal Family Medical Leave Act of 1993, long-term
10    disability, or parental leaves, the 3-year average of the
11    percentage of teachers returning to the school from the
12    previous year, the number of different principals at the
13    school in the last 6 years, 2 or more indicators from any
14    school climate survey selected or approved by the State and
15    administered pursuant to Section 2-3.153 of this Code, with
16    the same or similar indicators included on school report
17    cards for all surveys selected or approved by the State
18    pursuant to Section 2-3.153 of this Code, and the combined
19    percentage of teachers rated as proficient or excellent in
20    their most recent evaluation; and
21        (F) a school district's and its individual schools'
22    balanced accountability measure, in accordance with
23    Section 2-3.25a of this Code; and .
24        (G) the per-pupil expenditures of federal, State, and
25    local funds, including actual personnel expenditures and
26    actual non-personnel expenditures of federal, State, and

 

 

10000SB0001sam002- 180 -LRB100 06371 NHT 24463 a

1    local funds, disaggregated by source of funds, for the
2    school district and each of its schools for the preceding
3    fiscal year.
4    The school report card shall also provide information that
5allows for comparing the current outcome, progress, and
6environment data to the State average, to the school data from
7the past 5 years, and to the outcomes, progress, and
8environment of similar schools based on the type of school and
9enrollment of low-income students, special education students,
10and English learners.
11    (3) At the discretion of the State Superintendent, the
12school district report card shall include a subset of the
13information identified in paragraphs (A) through (E) of
14subsection (2) of this Section, as well as information relating
15to the operating expense per pupil and other finances of the
16school district, and the State report card shall include a
17subset of the information identified in paragraphs (A) through
18(E) of subsection (2) of this Section.
19    (4) Notwithstanding anything to the contrary in this
20Section, in consultation with key education stakeholders, the
21State Superintendent shall at any time have the discretion to
22amend or update any and all metrics on the school, district, or
23State report card.
24    (5) Annually, no more than 30 calendar days after receipt
25of the school district and school report cards from the State
26Superintendent of Education, each school district, including

 

 

10000SB0001sam002- 181 -LRB100 06371 NHT 24463 a

1special charter districts and districts subject to the
2provisions of Article 34, shall present such report cards at a
3regular school board meeting subject to applicable notice
4requirements, post the report cards on the school district's
5Internet web site, if the district maintains an Internet web
6site, make the report cards available to a newspaper of general
7circulation serving the district, and, upon request, send the
8report cards home to a parent (unless the district does not
9maintain an Internet web site, in which case the report card
10shall be sent home to parents without request). If the district
11posts the report card on its Internet web site, the district
12shall send a written notice home to parents stating (i) that
13the report card is available on the web site, (ii) the address
14of the web site, (iii) that a printed copy of the report card
15will be sent to parents upon request, and (iv) the telephone
16number that parents may call to request a printed copy of the
17report card.
18    (6) Nothing contained in this amendatory Act of the 98th
19General Assembly repeals, supersedes, invalidates, or
20nullifies final decisions in lawsuits pending on the effective
21date of this amendatory Act of the 98th General Assembly in
22Illinois courts involving the interpretation of Public Act
2397-8.
24(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
25eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
 

 

 

10000SB0001sam002- 182 -LRB100 06371 NHT 24463 a

1    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
2    Sec. 10-19. Length of school term - experimental programs.
3Each school board shall annually prepare a calendar for the
4school term, specifying the opening and closing dates and
5providing a minimum term of at least 185 days to insure 176
6days of actual pupil attendance, computable under Section
718-8.05 or 18-8.15, except that for the 1980-1981 school year
8only 175 days of actual pupil attendance shall be required
9because of the closing of schools pursuant to Section 24-2 on
10January 29, 1981 upon the appointment by the President of that
11day as a day of thanksgiving for the freedom of the Americans
12who had been held hostage in Iran. Any days allowed by law for
13teachers' institutes but not used as such or used as parental
14institutes as provided in Section 10-22.18d shall increase the
15minimum term by the school days not so used. Except as provided
16in Section 10-19.1, the board may not extend the school term
17beyond such closing date unless that extension of term is
18necessary to provide the minimum number of computable days. In
19case of such necessary extension school employees shall be paid
20for such additional time on the basis of their regular
21contracts. A school board may specify a closing date earlier
22than that set on the annual calendar when the schools of the
23district have provided the minimum number of computable days
24under this Section. Nothing in this Section prevents the board
25from employing superintendents of schools, principals and
26other nonteaching personnel for a period of 12 months, or in

 

 

10000SB0001sam002- 183 -LRB100 06371 NHT 24463 a

1the case of superintendents for a period in accordance with
2Section 10-23.8, or prevents the board from employing other
3personnel before or after the regular school term with payment
4of salary proportionate to that received for comparable work
5during the school term.
6    A school board may make such changes in its calendar for
7the school term as may be required by any changes in the legal
8school holidays prescribed in Section 24-2. A school board may
9make changes in its calendar for the school term as may be
10necessary to reflect the utilization of teachers' institute
11days as parental institute days as provided in Section
1210-22.18d.
13    The calendar for the school term and any changes must be
14submitted to and approved by the regional superintendent of
15schools before the calendar or changes may take effect.
16    With the prior approval of the State Board of Education and
17subject to review by the State Board of Education every 3
18years, any school board may, by resolution of its board and in
19agreement with affected exclusive collective bargaining
20agents, establish experimental educational programs, including
21but not limited to programs for e-learning days as authorized
22under Section 10-20.56 of this Code, self-directed learning, or
23outside of formal class periods, which programs when so
24approved shall be considered to comply with the requirements of
25this Section as respects numbers of days of actual pupil
26attendance and with the other requirements of this Act as

 

 

10000SB0001sam002- 184 -LRB100 06371 NHT 24463 a

1respects courses of instruction.
2(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
3    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
4    Sec. 10-22.5a. Attendance by dependents of United States
5military personnel, foreign exchange students, and certain
6nonresident pupils.
7    (a) To enter into written agreements with cultural exchange
8organizations, or with nationally recognized eleemosynary
9institutions that promote excellence in the arts, mathematics,
10or science. The written agreements may provide for tuition free
11attendance at the local district school by foreign exchange
12students, or by nonresident pupils of eleemosynary
13institutions. The local board of education, as part of the
14agreement, may require that the cultural exchange program or
15the eleemosynary institutions provide services to the district
16in exchange for the waiver of nonresident tuition.
17    To enter into written agreements with adjacent school
18districts to provide for tuition free attendance by a student
19of the adjacent district when requested for the student's
20health and safety by the student or parent and both districts
21determine that the student's health or safety will be served by
22such attendance. Districts shall not be required to enter into
23such agreements nor be required to alter existing
24transportation services due to the attendance of such
25non-resident pupils.

 

 

10000SB0001sam002- 185 -LRB100 06371 NHT 24463 a

1    (a-5) If, at the time of enrollment, a dependent of United
2States military personnel is housed in temporary housing
3located outside of a school district, but will be living within
4the district within 60 days after the time of initial
5enrollment, the dependent must be allowed to enroll, subject to
6the requirements of this subsection (a-5), and must not be
7charged tuition. Any United States military personnel
8attempting to enroll a dependent under this subsection (a-5)
9shall provide proof that the dependent will be living within
10the district within 60 days after the time of initial
11enrollment. Proof of residency may include, but is not limited
12to, postmarked mail addressed to the military personnel and
13sent to an address located within the district, a lease
14agreement for occupancy of a residence located within the
15district, or proof of ownership of a residence located within
16the district.
17    (b) Nonresident pupils and foreign exchange students
18attending school on a tuition free basis under such agreements
19and nonresident dependents of United States military personnel
20attending school on a tuition free basis may be counted for the
21purposes of determining the apportionment of State aid provided
22under Section 18-8.05 or 18-8.15 of this Code. No organization
23or institution participating in agreements authorized under
24this Section may exclude any individual for participation in
25its program on account of the person's race, color, sex,
26religion or nationality.

 

 

10000SB0001sam002- 186 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 187 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 188 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 189 -LRB100 06371 NHT 24463 a

1Community College Board, multiplied by the following:
2        (1) For adult basic education, the minimum maximum
3    reimbursement per credit hour or per unit of instruction
4    shall be equal to (i) through fiscal year 2017, the general
5    state aid per pupil foundation level established in
6    subsection (B) of Section 18-8.05, divided by 60, or (ii)
7    in fiscal year 2018 and thereafter, the prior fiscal year
8    reimbursement level;
9        (2) The maximum reimbursement per credit hour or per
10    unit of instruction in subparagraph (1) above shall be
11    weighted for students enrolled in classes defined as
12    vocational skills and approved by the Illinois Community
13    College Board by 1.25;
14        (3) The maximum reimbursement per credit hour or per
15    unit of instruction in subparagraph (1) above shall be
16    multiplied by .90 for students enrolled in classes defined
17    as adult secondary education programs and approved by the
18    Illinois Community College Board;
19        (4) (Blank); and
20        (5) Funding for program years after 1999-2000 shall be
21    determined by the Illinois Community College Board.
22    (d) Upon its annual approval, the Illinois Community
23College Board shall provide grants to eligible programs for
24supplemental activities to improve or expand services under the
25Adult Education Act. Eligible programs shall be determined
26based upon performance outcomes of students in the programs as

 

 

10000SB0001sam002- 190 -LRB100 06371 NHT 24463 a

1set by the Illinois Community College Board.
2    (e) Reimbursement under this Section shall not exceed the
3actual costs of the approved program.
4    If the amount appropriated to the Illinois Community
5College Board for reimbursement under this Section is less than
6the amount required under this Act, the apportionment shall be
7proportionately reduced.
8    School districts and community college districts may
9assess students up to $3.00 per credit hour, for classes other
10than Adult Basic Education level programs, if needed to meet
11program costs.
12    (f) An education plan shall be established for each adult
13or youth whose schooling has been interrupted and who is
14participating in the instructional programs provided under
15this Section.
16    Each school board and community college shall keep an
17accurate and detailed account of the students assigned to and
18receiving instruction under this Section who are subject to
19State reimbursement and shall submit reports of services
20provided commencing with fiscal year 1997 as required by the
21Illinois Community College Board.
22    For classes authorized under this Section, a credit hour or
23unit of instruction is equal to 15 hours of direct instruction
24for students enrolled in approved adult education programs at
25midterm and making satisfactory progress, in accordance with
26standards established by the Illinois Community College Board.

 

 

10000SB0001sam002- 191 -LRB100 06371 NHT 24463 a

1    (g) Upon proof submitted to the Illinois Department of
2Human Services of the payment of all claims submitted under
3this Section, that Department shall apply for federal funds
4made available therefor and any federal funds so received shall
5be paid into the General Revenue Fund in the State Treasury.
6    School districts or community colleges providing classes
7under this Section shall submit applications to the Illinois
8Community College Board for preapproval in accordance with the
9standards established by the Illinois Community College Board.
10Payments shall be made by the Illinois Community College Board
11based upon approved programs. Interim expenditure reports may
12be required by the Illinois Community College Board. Final
13claims for the school year shall be submitted to the regional
14superintendents for transmittal to the Illinois Community
15College Board. Final adjusted payments shall be made by
16September 30.
17    If a school district or community college district fails to
18provide, or is providing unsatisfactory or insufficient
19classes under this Section, the Illinois Community College
20Board may enter into agreements with public or private
21educational or other agencies other than the public schools for
22the establishment of such classes.
23    (h) If a school district or community college district
24establishes child-care facilities for the children of
25participants in classes established under this Section, it may
26extend the use of these facilities to students who have

 

 

10000SB0001sam002- 192 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 193 -LRB100 06371 NHT 24463 a

1remaining period shall be charged to the Illinois Department of
2Human Services or other persons or agencies paying for such
3care.
4    (i) The provisions of this Section shall also apply to
5school districts having a population exceeding 500,000.
6    (j) In addition to claiming reimbursement under this
7Section, a school district may claim general State aid under
8Section 18-8.05 or evidence-based funding under Section
918-8.15 for any student under age 21 who is enrolled in courses
10accepted for graduation from elementary or high school and who
11otherwise meets the requirements of Section 18-8.05 or 18-8.15,
12as applicable.
13(Source: P.A. 98-718, eff. 1-1-15.)
 
14    (105 ILCS 5/10-29)
15    Sec. 10-29. Remote educational programs.
16    (a) For purposes of this Section, "remote educational
17program" means an educational program delivered to students in
18the home or other location outside of a school building that
19meets all of the following criteria:
20        (1) A student may participate in the program only after
21    the school district, pursuant to adopted school board
22    policy, and a person authorized to enroll the student under
23    Section 10-20.12b of this Code determine that a remote
24    educational program will best serve the student's
25    individual learning needs. The adopted school board policy

 

 

10000SB0001sam002- 194 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 195 -LRB100 06371 NHT 24463 a

1        with the remote educational program.
2            (F) A description of the process for renewing a
3        remote educational program at the expiration of its
4        term.
5            (G) Such other terms and provisions as the school
6        district deems necessary to provide for the
7        establishment and delivery of a remote educational
8        program.
9        (2) The school district has determined that the remote
10    educational program's curriculum is aligned to State
11    learning standards and that the program offers instruction
12    and educational experiences consistent with those given to
13    students at the same grade level in the district.
14        (3) The remote educational program is delivered by
15    instructors that meet the following qualifications:
16            (A) they are certificated under Article 21 of this
17        Code;
18            (B) they meet applicable highly qualified criteria
19        under the federal No Child Left Behind Act of 2001; and
20            (C) they have responsibility for all of the
21        following elements of the program: planning
22        instruction, diagnosing learning needs, prescribing
23        content delivery through class activities, assessing
24        learning, reporting outcomes to administrators and
25        parents and guardians, and evaluating the effects of
26        instruction.

 

 

10000SB0001sam002- 196 -LRB100 06371 NHT 24463 a

1        (4) During the period of time from and including the
2    opening date to the closing date of the regular school term
3    of the school district established pursuant to Section
4    10-19 of this Code, participation in a remote educational
5    program may be claimed for general State aid purposes under
6    Section 18-8.05 of this Code or evidence-based funding
7    purposes under Section 18-8.15 of this Code on any calendar
8    day, notwithstanding whether the day is a day of pupil
9    attendance or institute day on the school district's
10    calendar or any other provision of law restricting
11    instruction on that day. If the district holds year-round
12    classes in some buildings, the district shall classify each
13    student's participation in a remote educational program as
14    either on a year-round or a non-year-round schedule for
15    purposes of claiming general State aid or evidence-based
16    funding. Outside of the regular school term of the
17    district, the remote educational program may be offered as
18    part of any summer school program authorized by this Code.
19        (5) Each student participating in a remote educational
20    program must have a written remote educational plan that
21    has been approved by the school district and a person
22    authorized to enroll the student under Section 10-20.12b of
23    this Code. The school district and a person authorized to
24    enroll the student under Section 10-20.12b of this Code
25    must approve any amendment to a remote educational plan.
26    The remote educational plan must include, but is not

 

 

10000SB0001sam002- 197 -LRB100 06371 NHT 24463 a

1    limited to, all of the following:
2            (A) Specific achievement goals for the student
3        aligned to State learning standards.
4            (B) A description of all assessments that will be
5        used to measure student progress, which description
6        shall indicate the assessments that will be
7        administered at an attendance center within the school
8        district.
9            (C) A description of the progress reports that will
10        be provided to the school district and the person or
11        persons authorized to enroll the student under Section
12        10-20.12b of this Code.
13            (D) Expectations, processes, and schedules for
14        interaction between a teacher and student.
15            (E) A description of the specific responsibilities
16        of the student's family and the school district with
17        respect to equipment, materials, phone and Internet
18        service, and any other requirements applicable to the
19        home or other location outside of a school building
20        necessary for the delivery of the remote educational
21        program.
22            (F) If applicable, a description of how the remote
23        educational program will be delivered in a manner
24        consistent with the student's individualized education
25        program required by Section 614(d) of the federal
26        Individuals with Disabilities Education Improvement

 

 

10000SB0001sam002- 198 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 199 -LRB100 06371 NHT 24463 a

1            (K) A description of the specific location or
2        locations in which the program will be delivered. If
3        the remote educational program is to be delivered to a
4        student in any location other than the student's home,
5        the plan must include a written determination by the
6        school district that the location will provide a
7        learning environment appropriate for the delivery of
8        the program. The location or locations in which the
9        program will be delivered shall be deemed a long
10        distance teaching reception area under subsection (a)
11        of Section 10-22.34 of this Code.
12            (L) Certification by the school district that the
13        plan meets all other requirements of this Section.
14        (6) Students participating in a remote educational
15    program must be enrolled in a school district attendance
16    center pursuant to the school district's enrollment policy
17    or policies. A student participating in a remote
18    educational program must be tested as part of all
19    assessments administered by the school district pursuant
20    to Section 2-3.64a-5 of this Code at the attendance center
21    in which the student is enrolled and in accordance with the
22    attendance center's assessment policies and schedule. The
23    student must be included within all accountability
24    determinations for the school district and attendance
25    center under State and federal law.
26        (7) The term of a student's participation in a remote

 

 

10000SB0001sam002- 200 -LRB100 06371 NHT 24463 a

1    educational program may not extend for longer than 12
2    months, unless the term is renewed by the school district.
3    The district may only renew a student's participation in a
4    remote educational program following an evaluation of the
5    student's progress in the program, a determination that the
6    student's continuation in the program will best serve the
7    student's individual learning needs, and an amendment to
8    the student's written remote educational plan addressing
9    any changes for the upcoming term of the program.
10    For purposes of this Section, a remote educational program
11does not include instruction delivered to students through an
12e-learning program approved under Section 10-20.56 of this
13Code.
14    (b) A school district may, by resolution of its school
15board, establish a remote educational program.
16    (c) Clock hours of instruction by students in a remote
17educational program meeting the requirements of this Section
18may be claimed by the school district and shall be counted as
19school work for general State aid purposes in accordance with
20and subject to the limitations of Section 18-8.05 of this Code
21or evidence-based funding purposes in accordance with and
22subject to the limitations of Section 18-8.15 of this Code.
23    (d) The impact of remote educational programs on wages,
24hours, and terms and conditions of employment of educational
25employees within the school district shall be subject to local
26collective bargaining agreements.

 

 

10000SB0001sam002- 201 -LRB100 06371 NHT 24463 a

1    (e) The use of a home or other location outside of a school
2building for a remote educational program shall not cause the
3home or other location to be deemed a public school facility.
4    (f) A remote educational program may be used, but is not
5required, for instruction delivered to a student in the home or
6other location outside of a school building that is not claimed
7for general State aid purposes under Section 18-8.05 of this
8Code or evidence-based funding purposes under Section 18-8.15
9of this Code.
10    (g) School districts that, pursuant to this Section, adopt
11a policy for a remote educational program must submit to the
12State Board of Education a copy of the policy and any
13amendments thereto, as well as data on student participation in
14a format specified by the State Board of Education. The State
15Board of Education may perform or contract with an outside
16entity to perform an evaluation of remote educational programs
17in this State.
18    (h) The State Board of Education may adopt any rules
19necessary to ensure compliance by remote educational programs
20with the requirements of this Section and other applicable
21legal requirements.
22(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
2399-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
24    (105 ILCS 5/11E-135)
25    Sec. 11E-135. Incentives. For districts reorganizing under

 

 

10000SB0001sam002- 202 -LRB100 06371 NHT 24463 a

1this Article and for a district or districts that annex all of
2the territory of one or more entire other school districts in
3accordance with Article 7 of this Code, the following payments
4shall be made from appropriations made for these purposes:
5    (a)(1) For a combined school district, as defined in
6Section 11E-20 of this Code, or for a unit district, as defined
7in Section 11E-25 of this Code, for its first year of
8existence, the general State aid and supplemental general State
9aid calculated under Section 18-8.05 of this Code or the
10evidence-based funding calculated under Section 18-8.15 of
11this Code, as applicable, shall be computed for the new
12district and for the previously existing districts for which
13property is totally included within the new district. If the
14computation on the basis of the previously existing districts
15is greater, a supplementary payment equal to the difference
16shall be made for the first 4 years of existence of the new
17district.
18    (2) For a school district that annexes all of the territory
19of one or more entire other school districts as defined in
20Article 7 of this Code, for the first year during which the
21change of boundaries attributable to the annexation becomes
22effective for all purposes, as determined under Section 7-9 of
23this Code, the general State aid and supplemental general State
24aid calculated under Section 18-8.05 of this Code or the
25evidence-based funding calculated under Section 18-8.15 of
26this Code, as applicable, shall be computed for the annexing

 

 

10000SB0001sam002- 203 -LRB100 06371 NHT 24463 a

1district as constituted after the annexation and for the
2annexing and each annexed district as constituted prior to the
3annexation; and if the computation on the basis of the annexing
4and annexed districts as constituted prior to the annexation is
5greater, then a supplementary payment equal to the difference
6shall be made for the first 4 years of existence of the
7annexing school district as constituted upon the annexation.
8    (3) For 2 or more school districts that annex all of the
9territory of one or more entire other school districts, as
10defined in Article 7 of this Code, for the first year during
11which the change of boundaries attributable to the annexation
12becomes effective for all purposes, as determined under Section
137-9 of this Code, the general State aid and supplemental
14general State aid calculated under Section 18-8.05 of this Code
15or the evidence-based funding calculated under Section 18-8.15
16of this Code, as applicable, shall be computed for each
17annexing district as constituted after the annexation and for
18each annexing and annexed district as constituted prior to the
19annexation; and if the aggregate of the general State aid and
20supplemental general State aid or evidence-based funding, as
21applicable, as so computed for the annexing districts as
22constituted after the annexation is less than the aggregate of
23the general State aid and supplemental general State aid or
24evidence-based funding, as applicable, as so computed for the
25annexing and annexed districts, as constituted prior to the
26annexation, then a supplementary payment equal to the

 

 

10000SB0001sam002- 204 -LRB100 06371 NHT 24463 a

1difference shall be made and allocated between or among the
2annexing districts, as constituted upon the annexation, for the
3first 4 years of their existence. The total difference payment
4shall be allocated between or among the annexing districts in
5the same ratio as the pupil enrollment from that portion of the
6annexed district or districts that is annexed to each annexing
7district bears to the total pupil enrollment from the entire
8annexed district or districts, as such pupil enrollment is
9determined for the school year last ending prior to the date
10when the change of boundaries attributable to the annexation
11becomes effective for all purposes. The amount of the total
12difference payment and the amount thereof to be allocated to
13the annexing districts shall be computed by the State Board of
14Education on the basis of pupil enrollment and other data that
15shall be certified to the State Board of Education, on forms
16that it shall provide for that purpose, by the regional
17superintendent of schools for each educational service region
18in which the annexing and annexed districts are located.
19    (4) For a school district conversion, as defined in Section
2011E-15 of this Code, or a multi-unit conversion, as defined in
21subsection (b) of Section 11E-30 of this Code, if in their
22first year of existence the newly created elementary districts
23and the newly created high school district, from a school
24district conversion, or the newly created elementary district
25or districts and newly created combined high school - unit
26district, from a multi-unit conversion, qualify for less

 

 

10000SB0001sam002- 205 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 206 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 207 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 208 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 209 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 210 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 211 -LRB100 06371 NHT 24463 a

1    (7) Claims for financial assistance under this subsection
2(a) may not be recomputed except as expressly provided under
3Section 18-8.05 or 18-8.15 of this Code.
4    (8) Any supplementary payment made under this subsection
5(a) must be treated as separate from all other payments made
6pursuant to Section 18-8.05 or 18-8.15 of this Code.
7    (b)(1) After the formation of a combined school district,
8as defined in Section 11E-20 of this Code, or a unit district,
9as defined in Section 11E-25 of this Code, a computation shall
10be made to determine the difference between the salaries
11effective in each of the previously existing districts on June
1230, prior to the creation of the new district. For the first 4
13years after the formation of the new district, a supplementary
14State aid reimbursement shall be paid to the new district equal
15to the difference between the sum of the salaries earned by
16each of the certificated members of the new district, while
17employed in one of the previously existing districts during the
18year immediately preceding the formation of the new district,
19and the sum of the salaries those certificated members would
20have been paid during the year immediately prior to the
21formation of the new district if placed on the salary schedule
22of the previously existing district with the highest salary
23schedule.
24    (2) After the territory of one or more school districts is
25annexed by one or more other school districts as defined in
26Article 7 of this Code, a computation shall be made to

 

 

10000SB0001sam002- 212 -LRB100 06371 NHT 24463 a

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

 

 

10000SB0001sam002- 213 -LRB100 06371 NHT 24463 a

1    (4) For each newly created partial elementary unit
2district, the State shall make a supplementary payment for 4
3years equal to the difference between the sum of the salaries
4earned by each certified member of the newly created partial
5elementary unit district, while employed in one of the
6previously existing districts that formed the partial
7elementary unit district, and the sum of the salaries those
8certified members would have been paid if placed on the salary
9schedule of the previously existing district with the highest
10salary schedule. The salary schedules used in the calculation
11shall be those in effect in the previously existing districts
12for the school year prior to the creation of the new partial
13elementary unit district.
14    (5) For an elementary district opt-in, as described in
15subsection (d) of Section 11E-30 of this Code, the salary
16difference incentive shall be computed in accordance with
17paragraph (4) of this subsection (b) as if the opted-in
18elementary district was included in the optional elementary
19unit district at the optional elementary unit district's
20original effective date. If the calculation in this paragraph
21(5) is less than that calculated in paragraph (4) of this
22subsection (b) at the optional elementary unit district's
23original effective date, then no adjustments may be made. If
24the calculation in this paragraph (5) is more than that
25calculated in paragraph (4) of this subsection (b) at the
26optional elementary unit district's original effective date,

 

 

10000SB0001sam002- 214 -LRB100 06371 NHT 24463 a

1then the excess must be paid as follows:
2        (A) If the effective date for the elementary opt-in is
3    one year after the effective date for the optional
4    elementary unit district, 100% of the calculated excess
5    shall be paid to the optional elementary unit district in
6    each of the first 4 years after the effective date of the
7    elementary opt-in.
8        (B) If the effective date for the elementary opt-in is
9    2 years after the effective date for the optional
10    elementary unit district, 75% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    each of the first 4 years after the effective date of the
13    elementary opt-in.
14        (C) If the effective date for the elementary opt-in is
15    3 years after the effective date for the optional
16    elementary unit district, 50% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    each of the first 4 years after the effective date of the
19    elementary opt-in.
20        (D) If the effective date for the elementary opt-in is
21    4 years after the effective date for the partial elementary
22    unit district, 25% of the calculated excess shall be paid
23    to the optional elementary unit district in each of the
24    first 4 years after the effective date of the elementary
25    opt-in.
26        (E) If the effective date for the elementary opt-in is

 

 

10000SB0001sam002- 215 -LRB100 06371 NHT 24463 a

1    5 years after the effective date for the optional
2    elementary unit district, the optional elementary unit
3    district is not eligible for any additional incentives due
4    to the elementary opt-in.
5    (5.5) After the formation of a cooperative high school by 2
6or more school districts under Section 10-22.22c of this Code,
7a computation shall be made to determine the difference between
8the salaries effective in each of the previously existing high
9schools on June 30 prior to the formation of the cooperative
10high school. For the first 4 years after the formation of the
11cooperative high school, a supplementary State aid
12reimbursement shall be paid to the cooperative high school
13equal to the difference between the sum of the salaries earned
14by each of the certificated members of the cooperative high