Sen. Andy Manar

Filed: 5/17/2017

 

 


 

 


 
10000SB0001sam005LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 2 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 3 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 4 -LRB100 06371 MLM 26512 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:
 

 

 

10000SB0001sam005- 5 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 6 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 7 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 8 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 9 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 10 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 11 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 12 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 13 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 14 -LRB100 06371 MLM 26512 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,

 

 

10000SB0001sam005- 15 -LRB100 06371 MLM 26512 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:
 

 

 

10000SB0001sam005- 16 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 17 -LRB100 06371 MLM 26512 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 Sections 16-158 and 17-127 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

 

 

10000SB0001sam005- 18 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 19 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 20 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 21 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 22 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 23 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 24 -LRB100 06371 MLM 26512 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.

 

 

10000SB0001sam005- 25 -LRB100 06371 MLM 26512 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.

 

 

10000SB0001sam005- 26 -LRB100 06371 MLM 26512 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.

 

 

10000SB0001sam005- 27 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 28 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 29 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 30 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 31 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 32 -LRB100 06371 MLM 26512 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

 

 

10000SB0001sam005- 33 -LRB100 06371 MLM 26512 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    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
7    Sec. 17-127. Financing; revenues for the Fund.
8    (a) The revenues for the Fund shall consist of: (1) amounts
9paid into the Fund by contributors thereto and from employer
10contributions and State appropriations in accordance with this
11Article; (2) amounts contributed to the Fund by an Employer;
12(3) amounts contributed to the Fund pursuant to any law now in
13force or hereafter to be enacted; (4) contributions from any
14other source; and (5) the earnings on investments.
15    (b) The General Assembly finds that for many years the
16State has contributed to the Fund an annual amount that is
17between 20% and 30% of the amount of the annual State
18contribution to the Article 16 retirement system, and the
19General Assembly declares that it is its goal and intention to
20continue this level of contribution to the Fund in the future.
21    (c) Beginning in State fiscal year 1999, the State shall
22include in its annual contribution to the Fund an additional
23amount equal to 0.544% of the Fund's total teacher payroll;
24except that this additional contribution need not be made in a
25fiscal year if the Board has certified in the previous fiscal

 

 

10000SB0001sam005- 34 -LRB100 06371 MLM 26512 a

1year that the Fund is at least 90% funded, based on actuarial
2determinations. These additional State contributions are
3intended to offset a portion of the cost to the Fund of the
4increases in retirement benefits resulting from this
5amendatory Act of 1998.
6    (d) In addition to any other contribution required under
7this Article, including the contribution required under
8subsection (c), the State shall contribute to the Fund the
9following amounts:
10        (1) For State fiscal year 2017, the State shall
11    contribute $215,200,000.
12        (2) For State fiscal year 2018, the State shall
13    contribute $221,300,000.
14        (3) Beginning in State fiscal year 2019, the State
15    shall contribute for each fiscal year an amount to be
16    determined by the Fund, equal to the employer normal cost
17    for that fiscal year, plus the amount allowed pursuant to
18    paragraph (3) of Section 17-142.1, to defray health
19    insurance costs.
20    (e) The Board shall determine the amount of State
21contributions required for each fiscal year on the basis of the
22actuarial tables and other assumptions adopted by the Board and
23the recommendations of the actuary. On or before November 1 of
24each year, beginning November 1, 2017, the Board shall submit
25to the State Actuary, the Governor, and the General Assembly a
26proposed certification of the amount of the required State

 

 

10000SB0001sam005- 35 -LRB100 06371 MLM 26512 a

1contribution to the Fund for the next fiscal year, along with
2all of the actuarial assumptions, calculations, and data upon
3which that proposed certification is based.
4    On or before January 1 of each year, beginning January 1,
52018, the State Actuary shall issue a preliminary report
6concerning the proposed certification and identifying, if
7necessary, recommended changes in actuarial assumptions that
8the Board must consider before finalizing its certification of
9the required State contributions.
10    (f) On or before January 15, 2018 and each January 15
11thereafter, the Board shall certify to the Governor and the
12General Assembly the amount of the required State contribution
13for the next fiscal year. The certification shall include a
14copy of the actuarial recommendations upon which it is based
15and shall specifically identify the Fund's projected employer
16normal cost for that fiscal year. The Board's certification
17must note any deviations from the State Actuary's recommended
18changes, the reason or reasons for not following the State
19Actuary's recommended changes, and the fiscal impact of not
20following the State Actuary's recommended changes on the
21required State contribution.
22    For the purposes of this Article, including issuing
23vouchers, and for the purposes of subsection (h) of Section 1.1
24of the State Pension Funds Continuing Appropriation Act, the
25State contribution specified for State fiscal years 2017 and
262018 shall be deemed to have been certified, by operation of

 

 

10000SB0001sam005- 36 -LRB100 06371 MLM 26512 a

1law and without official action by the Board or the State
2Actuary, in the amount provided in subsection (d) of this
3Section.
4    (g) Beginning in State fiscal year 2017, on the 15th day of
5each month, or as soon thereafter as may be practicable, the
6Board shall submit vouchers for payment of State contributions
7to the Fund, in a total monthly amount of one-twelfth of the
8required annual State contribution under subsection (d). These
9vouchers shall be paid by the State Comptroller and Treasurer
10by warrants drawn on the funds appropriated to the Fund for
11that fiscal year. If in any month the amount remaining
12unexpended from all other State appropriations to the Fund for
13the applicable fiscal year is less than the amount lawfully
14vouchered under this subsection, the difference shall be paid
15from the Common School Fund under the continuing appropriation
16authority provided in Section 1.1 of the State Pension Funds
17Continuing Appropriation Act.
18(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
1990-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
20    Section 18. The State Pension Funds Continuing
21Appropriation Act is amended by changing Section 1.1 as
22follows:
 
23    (40 ILCS 15/1.1)
24    Sec. 1.1. Appropriations to certain retirement systems.

 

 

10000SB0001sam005- 37 -LRB100 06371 MLM 26512 a

1    (a) There is hereby appropriated from the General Revenue
2Fund to the General Assembly Retirement System, on a continuing
3monthly basis, the amount, if any, by which the total available
4amount of all other appropriations to that retirement system
5for the payment of State contributions is less than the total
6amount of the vouchers for required State contributions
7lawfully submitted by the retirement system for that month
8under Section 2-134 of the Illinois Pension Code.
9    (b) There is hereby appropriated from the General Revenue
10Fund to the State Universities Retirement System, on a
11continuing monthly basis, the amount, if any, by which the
12total available amount of all other appropriations to that
13retirement system for the payment of State contributions,
14including any deficiency in the required contributions of the
15optional retirement program established under Section 15-158.2
16of the Illinois Pension Code, is less than the total amount of
17the vouchers for required State contributions lawfully
18submitted by the retirement system for that month under Section
1915-165 of the Illinois Pension Code.
20    (c) There is hereby appropriated from the Common School
21Fund to the Teachers' Retirement System of the State of
22Illinois, on a continuing monthly basis, the amount, if any, by
23which the total available amount of all other appropriations to
24that retirement system for the payment of State contributions
25is less than the total amount of the vouchers for required
26State contributions lawfully submitted by the retirement

 

 

10000SB0001sam005- 38 -LRB100 06371 MLM 26512 a

1system for that month under Section 16-158 of the Illinois
2Pension Code.
3    (d) There is hereby appropriated from the General Revenue
4Fund to the Judges Retirement System of Illinois, on a
5continuing monthly basis, the amount, if any, by which the
6total available amount of all other appropriations to that
7retirement system for the payment of State contributions is
8less than the total amount of the vouchers for required State
9contributions lawfully submitted by the retirement system for
10that month under Section 18-140 of the Illinois Pension Code.
11    (e) The continuing appropriations provided by subsections
12(a), (b), (c), and (d) of this Section shall first be available
13in State fiscal year 1996. The continuing appropriations
14provided by subsection (h) of this Section shall first be
15available as provided in that subsection (h).
16    (f) For State fiscal year 2010 only, the continuing
17appropriations provided by this Section are equal to the amount
18certified by each System on or before December 31, 2008, less
19(i) the gross proceeds of the bonds sold in fiscal year 2010
20under the authorization contained in subsection (a) of Section
217.2 of the General Obligation Bond Act and (ii) any amounts
22received from the State Pensions Fund.
23    (g) For State fiscal year 2011 only, the continuing
24appropriations provided by this Section are equal to the amount
25certified by each System on or before April 1, 2011, less (i)
26the gross proceeds of the bonds sold in fiscal year 2011 under

 

 

10000SB0001sam005- 39 -LRB100 06371 MLM 26512 a

1the authorization contained in subsection (a) of Section 7.2 of
2the General Obligation Bond Act and (ii) any amounts received
3from the State Pensions Fund.
4    (h) There is hereby appropriated from the Common School
5Fund to the Public School Teachers' Pension and Retirement Fund
6of Chicago, on a continuing monthly basis, the amount, if any,
7by which the total available amount of all other State
8appropriations to that Retirement Fund for the payment of State
9contributions under subsection (d) of Section 17-127 of the
10Illinois Pension Code is less than the total amount of the
11vouchers for required State contributions lawfully submitted
12by the Retirement Fund for that month under that Section
1317-127.
14(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1596-1511, eff. 1-27-11.)
 
16    Section 20. The Innovation Development and Economy Act is
17amended by changing Section 33 as follows:
 
18    (50 ILCS 470/33)
19    Sec. 33. STAR Bonds School Improvement and Operations Trust
20Fund.
21    (a) The STAR Bonds School Improvement and Operations Trust
22Fund is created as a trust fund in the State treasury. Deposits
23into the Trust Fund shall be made as provided under this
24Section. Moneys in the Trust Fund shall be used by the

 

 

10000SB0001sam005- 40 -LRB100 06371 MLM 26512 a

1Department of Revenue only for the purpose of making payments
2to school districts in educational service regions that include
3or are adjacent to the STAR bond district. Moneys in the Trust
4Fund are not subject to appropriation and shall be used solely
5as provided in this Section. All deposits into the Trust Fund
6shall be held in the Trust Fund by the State Treasurer as ex
7officio custodian separate and apart from all public moneys or
8funds of this State and shall be administered by the Department
9exclusively for the purposes set forth in this Section. All
10moneys in the Trust Fund shall be invested and reinvested by
11the State Treasurer. All interest accruing from these
12investments shall be deposited in the Trust Fund.
13    (b) Upon approval of a STAR bond district, the political
14subdivision shall immediately transmit to the county clerk of
15the county in which the district is located a certified copy of
16the ordinance creating the district, a legal description of the
17district, a map of the district, identification of the year
18that the county clerk shall use for determining the total
19initial equalized assessed value of the district consistent
20with subsection (c), and a list of the parcel or tax
21identification number of each parcel of property included in
22the district.
23    (c) Upon approval of a STAR bond district, the county clerk
24immediately thereafter shall determine (i) the most recently
25ascertained equalized assessed value of each lot, block, tract,
26or parcel of real property within the STAR bond district, from

 

 

10000SB0001sam005- 41 -LRB100 06371 MLM 26512 a

1which shall be deducted the homestead exemptions under Article
215 of the Property Tax Code, which value shall be the initial
3equalized assessed value of each such piece of property, and
4(ii) the total equalized assessed value of all taxable real
5property within the district by adding together the most
6recently ascertained equalized assessed value of each taxable
7lot, block, tract, or parcel of real property within the
8district, from which shall be deducted the homestead exemptions
9under Article 15 of the Property Tax Code, and shall certify
10that amount as the total initial equalized assessed value of
11the taxable real property within the STAR bond district.
12    (d) In reference to any STAR bond district created within
13any political subdivision, and in respect to which the county
14clerk has certified the total initial equalized assessed value
15of the property in the area, the political subdivision may
16thereafter request the clerk in writing to adjust the initial
17equalized value of all taxable real property within the STAR
18bond district by deducting therefrom the exemptions under
19Article 15 of the Property Tax Code applicable to each lot,
20block, tract, or parcel of real property within the STAR bond
21district. The county clerk shall immediately, after the written
22request to adjust the total initial equalized value is
23received, determine the total homestead exemptions in the STAR
24bond district as provided under Article 15 of the Property Tax
25Code by adding together the homestead exemptions provided by
26said Article on each lot, block, tract, or parcel of real

 

 

10000SB0001sam005- 42 -LRB100 06371 MLM 26512 a

1property within the STAR bond district and then shall deduct
2the total of said exemptions from the total initial equalized
3assessed value. The county clerk shall then promptly certify
4that amount as the total initial equalized assessed value as
5adjusted of the taxable real property within the STAR bond
6district.
7    (e) The county clerk or other person authorized by law
8shall compute the tax rates for each taxing district with all
9or a portion of its equalized assessed value located in the
10STAR bond district. The rate per cent of tax determined shall
11be extended to the current equalized assessed value of all
12property in the district in the same manner as the rate per
13cent of tax is extended to all other taxable property in the
14taxing district.
15    (f) Beginning with the assessment year in which the first
16destination user in the first STAR bond project in a STAR bond
17district makes its first retail sales and for each assessment
18year thereafter until final maturity of the last STAR bonds
19issued in the district, the county clerk or other person
20authorized by law shall determine the increase in equalized
21assessed value of all real property within the STAR bond
22district by subtracting the initial equalized assessed value of
23all property in the district certified under subsection (c)
24from the current equalized assessed value of all property in
25the district. Each year, the property taxes arising from the
26increase in equalized assessed value in the STAR bond district

 

 

10000SB0001sam005- 43 -LRB100 06371 MLM 26512 a

1shall be determined for each taxing district and shall be
2certified to the county collector.
3    (g) Beginning with the year in which taxes are collected
4based on the assessment year in which the first destination
5user in the first STAR bond project in a STAR bond district
6makes its first retail sales and for each year thereafter until
7final maturity of the last STAR bonds issued in the district,
8the county collector shall, within 30 days after receipt of
9property taxes, transmit to the Department to be deposited into
10the STAR Bonds School Improvement and Operations Trust Fund 15%
11of property taxes attributable to the increase in equalized
12assessed value within the STAR bond district from each taxing
13district as certified in subsection (f).
14    (h) The Department shall pay to the regional superintendent
15of schools whose educational service region includes Franklin
16and Williamson Counties, for each year for which money is
17remitted to the Department and paid into the STAR Bonds School
18Improvement and Operations Trust Fund, the money in the Fund as
19provided in this Section. The amount paid to each school
20district shall be allocated proportionately, based on each
21qualifying school district's fall enrollment for the
22then-current school year, such that the school district with
23the largest fall enrollment receives the largest proportionate
24share of money paid out of the Fund or by any other method or
25formula that the regional superintendent of schools deems fit,
26equitable, and in the public interest. The regional

 

 

10000SB0001sam005- 44 -LRB100 06371 MLM 26512 a

1superintendent may allocate moneys to school districts that are
2outside of his or her educational service region or to other
3regional superintendents.
4    The Department shall determine the distributions under
5this Section using its best judgment and information. The
6Department shall be held harmless for the distributions made
7under this Section and all distributions shall be final.
8    (i) In any year that an assessment appeal is filed, the
9extension of taxes on any assessment so appealed shall not be
10delayed. In the case of an assessment that is altered, any
11taxes extended upon the unauthorized assessment or part thereof
12shall be abated, or, if already paid, shall be refunded with
13interest as provided in Section 23-20 of the Property Tax Code.
14In the case of an assessment appeal, the county collector shall
15notify the Department that an assessment appeal has been filed
16and the amount of the tax that would have been deposited in the
17STAR Bonds School Improvement and Operations Trust Fund. The
18county collector shall hold that amount in a separate fund
19until the appeal process is final. After the appeal process is
20finalized, the county collector shall transmit to the
21Department the amount of tax that remains, if any, after all
22required refunds are made. The Department shall pay any amount
23deposited into the Trust Fund under this Section in the same
24proportion as determined for payments for that taxable year
25under subsection (h).
26    (j) In any year that ad valorem taxes are allocated to the

 

 

10000SB0001sam005- 45 -LRB100 06371 MLM 26512 a

1STAR Bonds School Improvement and Operations Trust Fund, that
2allocation shall not reduce or otherwise impact the school aid
3provided to any school district under the general State school
4aid formula provided for in Section 18-8.05 of the School Code
5or the evidence-based funding formula provided for in Section
618-8.15 of the School Code.
7(Source: P.A. 96-939, eff. 6-24-10.)
 
8    Section 25. The County Economic Development Project Area
9Property Tax Allocation Act is amended by changing Section 7 as
10follows:
 
11    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
12    Sec. 7. Creation of special tax allocation fund. If a
13county has adopted property tax allocation financing by
14ordinance for an economic development project area, the
15Department has approved and certified the economic development
16project area, and the county clerk has thereafter certified the
17"total initial equalized value" of the taxable real property
18within such economic development project area in the manner
19provided in subsection (b) of Section 6 of this Act, each year
20after the date of the certification by the county clerk of the
21"initial equalized assessed value" until economic development
22project costs and all county obligations financing economic
23development project costs have been paid, the ad valorem taxes,
24if any, arising from the levies upon the taxable real property

 

 

10000SB0001sam005- 46 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 47 -LRB100 06371 MLM 26512 a

1allocation financing, may pledge the funds in and to be
2deposited in the special tax allocation fund for the payment of
3obligations issued under this Act and for the payment of
4economic development project costs. No part of the current
5equalized assessed valuation of each property in the economic
6development project area attributable to any increase above the
7total initial equalized assessed value of such properties shall
8be used in calculating the general State school aid formula,
9provided for in Section 18-8 of the School Code, or the
10evidence-based funding formula, provided for in Section
1118-8.15 of the School Code, until such time as all economic
12development projects costs have been paid as provided for in
13this Section.
14    Whenever a county issues bonds for the purpose of financing
15economic development project costs, the county may provide by
16ordinance for the appointment of a trustee, which may be any
17trust company within the State, and for the establishment of
18the funds or accounts to be maintained by such trustee as the
19county shall deem necessary to provide for the security and
20payment of the bonds. If the county provides for the
21appointment of a trustee, the trustee shall be considered the
22assignee of any payments assigned by the county pursuant to the
23ordinance and this Section. Any amounts paid to the trustee as
24assignee shall be deposited in the funds or accounts
25established pursuant to the trust agreement, and shall be held
26by the trustee in trust for the benefit of the holders of the

 

 

10000SB0001sam005- 48 -LRB100 06371 MLM 26512 a

1bonds, and the holders shall have a lien on and a security
2interest in those bonds or accounts so long as the bonds remain
3outstanding and unpaid. Upon retirement of the bonds, the
4trustee shall pay over any excess amounts held to the county
5for deposit in the special tax allocation fund.
6    When the economic development project costs, including
7without limitation all county obligations financing economic
8development project costs incurred under this Act, have been
9paid, all surplus funds then remaining in the special tax
10allocation funds shall be distributed by being paid by the
11county treasurer to the county collector, who shall immediately
12thereafter pay those funds to the taxing districts having
13taxable property in the economic development project area in
14the same manner and proportion as the most recent distribution
15by the county collector to those taxing districts of real
16property taxes from real property in the economic development
17project area.
18    Upon the payment of all economic development project costs,
19retirement of obligations and the distribution of any excess
20monies pursuant to this Section and not later than 23 years
21from the date of adoption of the ordinance adopting property
22tax allocation financing, the county shall adopt an ordinance
23dissolving the special tax allocation fund for the economic
24development project area and terminating the designation of the
25economic development project area as an economic development
26project area; however, in relation to one or more contiguous

 

 

10000SB0001sam005- 49 -LRB100 06371 MLM 26512 a

1parcels not exceeding a total area of 120 acres within which an
2electric generating facility is intended to be constructed, and
3with respect to which the owner of that proposed electric
4generating facility has entered into a redevelopment agreement
5with Grundy County on or before July 25, 2017, the ordinance of
6the county required in this paragraph shall not dissolve the
7special tax allocation fund for the existing economic
8development project area and shall only terminate the
9designation of the economic development project area as to
10those portions of the economic development project area
11excluding the area covered by the redevelopment agreement
12between the owner of the proposed electric generating facility
13and Grundy County; the county shall adopt an ordinance
14dissolving the special tax allocation fund for the economic
15development project area and terminating the designation of the
16economic development project area as an economic development
17project area with regard to the electric generating facility
18property not later than 35 years from the date of adoption of
19the ordinance adopting property tax allocation financing.
20Thereafter the rates of the taxing districts shall be extended
21and taxes levied, collected and distributed in the manner
22applicable in the absence of the adoption of property tax
23allocation financing.
24    Nothing in this Section shall be construed as relieving
25property in economic development project areas from being
26assessed as provided in the Property Tax Code or as relieving

 

 

10000SB0001sam005- 50 -LRB100 06371 MLM 26512 a

1owners of that property from paying a uniform rate of taxes, as
2required by Section 4 of Article IX of the Illinois
3Constitution of 1970.
4(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
5    Section 30. The County Economic Development Project Area
6Tax Increment Allocation Act of 1991 is amended by changing
7Section 50 as follows:
 
8    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
9    Sec. 50. Special tax allocation fund.
10    (a) If a county clerk has certified the "total initial
11equalized assessed value" of the taxable real property within
12an economic development project area in the manner provided in
13Section 45, each year after the date of the certification by
14the county clerk of the "total initial equalized assessed
15value", until economic development project costs and all county
16obligations financing economic development project costs have
17been paid, the ad valorem taxes, if any, arising from the
18levies upon the taxable real property in the economic
19development project area by taxing districts and tax rates
20determined in the manner provided in subsection (b) of Section
2145 shall be divided as follows:
22        (1) That portion of the taxes levied upon each taxable
23    lot, block, tract, or parcel of real property that is
24    attributable to the lower of the current equalized assessed

 

 

10000SB0001sam005- 51 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 52 -LRB100 06371 MLM 26512 a

1total initial equalized assessed value of those properties
2shall be used in calculating the general State school aid
3formula under Section 18-8 of the School Code or the
4evidence-based funding formula under Section 18-8.15 of the
5School Code until all economic development projects costs have
6been paid as provided for in this Section.
7    (c) When the economic development projects costs,
8including without limitation all county obligations financing
9economic development project costs incurred under this Act,
10have been paid, all surplus monies then remaining in the
11special tax allocation fund shall be distributed by being paid
12by the county treasurer to the county collector, who shall
13immediately pay the monies to the taxing districts having
14taxable property in the economic development project area in
15the same manner and proportion as the most recent distribution
16by the county collector to those taxing districts of real
17property taxes from real property in the economic development
18project area.
19    (d) Upon the payment of all economic development project
20costs, retirement of obligations, and distribution of any
21excess monies under this Section, the county shall adopt an
22ordinance dissolving the special tax allocation fund for the
23economic development project area and terminating the
24designation of the economic development project area as an
25economic development project area. Thereafter, the rates of the
26taxing districts shall be extended and taxes shall be levied,

 

 

10000SB0001sam005- 53 -LRB100 06371 MLM 26512 a

1collected, and distributed in the manner applicable in the
2absence of the adoption of tax increment allocation financing.
3    (e) Nothing in this Section shall be construed as relieving
4property in the economic development project areas from being
5assessed as provided in the Property Tax Code or as relieving
6owners of that property from paying a uniform rate of taxes as
7required by Section 4 of Article IX of the Illinois
8Constitution.
9(Source: P.A. 98-463, eff. 8-16-13.)
 
10    Section 35. The Illinois Municipal Code is amended by
11changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
12follows:
 
13    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
14    Sec. 11-74.4-3. Definitions. The following terms, wherever
15used or referred to in this Division 74.4 shall have the
16following respective meanings, unless in any case a different
17meaning clearly appears from the context.
18    (a) For any redevelopment project area that has been
19designated pursuant to this Section by an ordinance adopted
20prior to November 1, 1999 (the effective date of Public Act
2191-478), "blighted area" shall have the meaning set forth in
22this Section prior to that date.
23    On and after November 1, 1999, "blighted area" means any
24improved or vacant area within the boundaries of a

 

 

10000SB0001sam005- 54 -LRB100 06371 MLM 26512 a

1redevelopment project area located within the territorial
2limits of the municipality where:
3        (1) If improved, industrial, commercial, and
4    residential buildings or improvements are detrimental to
5    the public safety, health, or welfare because of a
6    combination of 5 or more of the following factors, each of
7    which is (i) present, with that presence documented, to a
8    meaningful extent so that a municipality may reasonably
9    find that the factor is clearly present within the intent
10    of the Act and (ii) reasonably distributed throughout the
11    improved part of the redevelopment project area:
12            (A) Dilapidation. An advanced state of disrepair
13        or neglect of necessary repairs to the primary
14        structural components of buildings or improvements in
15        such a combination that a documented building
16        condition analysis determines that major repair is
17        required or the defects are so serious and so extensive
18        that the buildings must be removed.
19            (B) Obsolescence. The condition or process of
20        falling into disuse. Structures have become ill-suited
21        for the original use.
22            (C) Deterioration. With respect to buildings,
23        defects including, but not limited to, major defects in
24        the secondary building components such as doors,
25        windows, porches, gutters and downspouts, and fascia.
26        With respect to surface improvements, that the

 

 

10000SB0001sam005- 55 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 56 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 57 -LRB100 06371 MLM 26512 a

1        standards of development for health and safety and (ii)
2        the presence of multiple buildings on a single parcel.
3        For there to be a finding of excessive land coverage,
4        these parcels must exhibit one or more of the following
5        conditions: insufficient provision for light and air
6        within or around buildings, increased threat of spread
7        of fire due to the close proximity of buildings, lack
8        of adequate or proper access to a public right-of-way,
9        lack of reasonably required off-street parking, or
10        inadequate provision for loading and service.
11            (J) Deleterious land use or layout. The existence
12        of incompatible land-use relationships, buildings
13        occupied by inappropriate mixed-uses, or uses
14        considered to be noxious, offensive, or unsuitable for
15        the surrounding area.
16            (K) Environmental clean-up. The proposed
17        redevelopment project area has incurred Illinois
18        Environmental Protection Agency or United States
19        Environmental Protection Agency remediation costs for,
20        or a study conducted by an independent consultant
21        recognized as having expertise in environmental
22        remediation has determined a need for, the clean-up of
23        hazardous waste, hazardous substances, or underground
24        storage tanks required by State or federal law,
25        provided that the remediation costs constitute a
26        material impediment to the development or

 

 

10000SB0001sam005- 58 -LRB100 06371 MLM 26512 a

1        redevelopment of the redevelopment project area.
2            (L) Lack of community planning. The proposed
3        redevelopment project area was developed prior to or
4        without the benefit or guidance of a community plan.
5        This means that the development occurred prior to the
6        adoption by the municipality of a comprehensive or
7        other community plan or that the plan was not followed
8        at the time of the area's development. This factor must
9        be documented by evidence of adverse or incompatible
10        land-use relationships, inadequate street layout,
11        improper subdivision, parcels of inadequate shape and
12        size to meet contemporary development standards, or
13        other evidence demonstrating an absence of effective
14        community planning.
15            (M) The total equalized assessed value of the
16        proposed redevelopment project area has declined for 3
17        of the last 5 calendar years prior to the year in which
18        the redevelopment project area is designated or is
19        increasing at an annual rate that is less than the
20        balance of the municipality for 3 of the last 5
21        calendar years for which information is available or is
22        increasing at an annual rate that is less than the
23        Consumer Price Index for All Urban Consumers published
24        by the United States Department of Labor or successor
25        agency for 3 of the last 5 calendar years prior to the
26        year in which the redevelopment project area is

 

 

10000SB0001sam005- 59 -LRB100 06371 MLM 26512 a

1        designated.
2        (2) If vacant, the sound growth of the redevelopment
3    project area is impaired by a combination of 2 or more of
4    the following factors, each of which is (i) present, with
5    that presence documented, to a meaningful extent so that a
6    municipality may reasonably find that the factor is clearly
7    present within the intent of the Act and (ii) reasonably
8    distributed throughout the vacant part of the
9    redevelopment project area to which it pertains:
10            (A) Obsolete platting of vacant land that results
11        in parcels of limited or narrow size or configurations
12        of parcels of irregular size or shape that would be
13        difficult to develop on a planned basis and in a manner
14        compatible with contemporary standards and
15        requirements, or platting that failed to create
16        rights-of-ways for streets or alleys or that created
17        inadequate right-of-way widths for streets, alleys, or
18        other public rights-of-way or that omitted easements
19        for public utilities.
20            (B) Diversity of ownership of parcels of vacant
21        land sufficient in number to retard or impede the
22        ability to assemble the land for development.
23            (C) Tax and special assessment delinquencies exist
24        or the property has been the subject of tax sales under
25        the Property Tax Code within the last 5 years.
26            (D) Deterioration of structures or site

 

 

10000SB0001sam005- 60 -LRB100 06371 MLM 26512 a

1        improvements in neighboring areas adjacent to the
2        vacant land.
3            (E) 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
12        the development or redevelopment of the redevelopment
13        project area.
14            (F) The total equalized assessed value of the
15        proposed redevelopment project area has declined for 3
16        of the last 5 calendar years prior to the year in which
17        the redevelopment project area is designated or is
18        increasing at an annual rate that is less than the
19        balance of the municipality for 3 of the last 5
20        calendar years for which information is available or is
21        increasing at an annual rate that is less than the
22        Consumer Price Index for All Urban Consumers published
23        by the United States Department of Labor or successor
24        agency for 3 of the last 5 calendar years prior to the
25        year in which the redevelopment project area is
26        designated.

 

 

10000SB0001sam005- 61 -LRB100 06371 MLM 26512 a

1        (3) If vacant, the sound growth of the redevelopment
2    project area is impaired by one of the following factors
3    that (i) is present, with that presence documented, to a
4    meaningful extent so that a municipality may reasonably
5    find that the factor is clearly present within the intent
6    of the Act and (ii) is reasonably distributed throughout
7    the vacant part of the redevelopment project area to which
8    it pertains:
9            (A) The area consists of one or more unused
10        quarries, mines, or strip mine ponds.
11            (B) The area consists of unused rail yards, rail
12        tracks, or railroad rights-of-way.
13            (C) The area, prior to its designation, is subject
14        to (i) chronic flooding that adversely impacts on real
15        property in the area as certified by a registered
16        professional engineer or appropriate regulatory agency
17        or (ii) surface water that discharges from all or a
18        part of the area and contributes to flooding within the
19        same watershed, but only if the redevelopment project
20        provides for facilities or improvements to contribute
21        to the alleviation of all or part of the flooding.
22            (D) The area consists of an unused or illegal
23        disposal site containing earth, stone, building
24        debris, or similar materials that were removed from
25        construction, demolition, excavation, or dredge sites.
26            (E) Prior to November 1, 1999, the area is not less

 

 

10000SB0001sam005- 62 -LRB100 06371 MLM 26512 a

1        than 50 nor more than 100 acres and 75% of which is
2        vacant (notwithstanding that the area has been used for
3        commercial agricultural purposes within 5 years prior
4        to the designation of the redevelopment project area),
5        and the area meets at least one of the factors itemized
6        in paragraph (1) of this subsection, the area has been
7        designated as a town or village center by ordinance or
8        comprehensive plan adopted prior to January 1, 1982,
9        and the area has not been developed for that designated
10        purpose.
11            (F) The area qualified as a blighted improved area
12        immediately prior to becoming vacant, unless there has
13        been substantial private investment in the immediately
14        surrounding area.
15    (b) For any redevelopment project area that has been
16designated pursuant to this Section by an ordinance adopted
17prior to November 1, 1999 (the effective date of Public Act
1891-478), "conservation area" shall have the meaning set forth
19in this Section prior to that date.
20    On and after November 1, 1999, "conservation area" means
21any improved area within the boundaries of a redevelopment
22project area located within the territorial limits of the
23municipality in which 50% or more of the structures in the area
24have an age of 35 years or more. Such an area is not yet a
25blighted area but because of a combination of 3 or more of the
26following factors is detrimental to the public safety, health,

 

 

10000SB0001sam005- 63 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 64 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 65 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 66 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 67 -LRB100 06371 MLM 26512 a

1    increasing at an annual rate that is less than the balance
2    of the municipality for 3 of the last 5 calendar years for
3    which information is available or is increasing at an
4    annual rate that is less than the Consumer Price Index for
5    All Urban Consumers published by the United States
6    Department of Labor or successor agency for 3 of the last 5
7    calendar years for which information is available.
8    (c) "Industrial park" means an area in a blighted or
9conservation area suitable for use by any manufacturing,
10industrial, research or transportation enterprise, of
11facilities to include but not be limited to factories, mills,
12processing plants, assembly plants, packing plants,
13fabricating plants, industrial distribution centers,
14warehouses, repair overhaul or service facilities, freight
15terminals, research facilities, test facilities or railroad
16facilities.
17    (d) "Industrial park conservation area" means an area
18within the boundaries of a redevelopment project area located
19within the territorial limits of a municipality that is a labor
20surplus municipality or within 1 1/2 miles of the territorial
21limits of a municipality that is a labor surplus municipality
22if the area is annexed to the municipality; which area is zoned
23as industrial no later than at the time the municipality by
24ordinance designates the redevelopment project area, and which
25area includes both vacant land suitable for use as an
26industrial park and a blighted area or conservation area

 

 

10000SB0001sam005- 68 -LRB100 06371 MLM 26512 a

1contiguous to such vacant land.
2    (e) "Labor surplus municipality" means a municipality in
3which, at any time during the 6 months before the municipality
4by ordinance designates an industrial park conservation area,
5the unemployment rate was over 6% and was also 100% or more of
6the national average unemployment rate for that same time as
7published in the United States Department of Labor Bureau of
8Labor Statistics publication entitled "The Employment
9Situation" or its successor publication. For the purpose of
10this subsection, if unemployment rate statistics for the
11municipality are not available, the unemployment rate in the
12municipality shall be deemed to be the same as the unemployment
13rate in the principal county in which the municipality is
14located.
15    (f) "Municipality" shall mean a city, village,
16incorporated town, or a township that is located in the
17unincorporated portion of a county with 3 million or more
18inhabitants, if the county adopted an ordinance that approved
19the township's redevelopment plan.
20    (g) "Initial Sales Tax Amounts" means the amount of taxes
21paid under the Retailers' Occupation Tax Act, Use Tax Act,
22Service Use Tax Act, the Service Occupation Tax Act, the
23Municipal Retailers' Occupation Tax Act, and the Municipal
24Service Occupation Tax Act by retailers and servicemen on
25transactions at places located in a State Sales Tax Boundary
26during the calendar year 1985.

 

 

10000SB0001sam005- 69 -LRB100 06371 MLM 26512 a

1    (g-1) "Revised Initial Sales Tax Amounts" means the amount
2of taxes paid under the Retailers' Occupation Tax Act, Use Tax
3Act, Service Use Tax Act, the Service Occupation Tax Act, the
4Municipal Retailers' Occupation Tax Act, and the Municipal
5Service Occupation Tax Act by retailers and servicemen on
6transactions at places located within the State Sales Tax
7Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
8    (h) "Municipal Sales Tax Increment" means an amount equal
9to the increase in the aggregate amount of taxes paid to a
10municipality from the Local Government Tax Fund arising from
11sales by retailers and servicemen within the redevelopment
12project area or State Sales Tax Boundary, as the case may be,
13for as long as the redevelopment project area or State Sales
14Tax Boundary, as the case may be, exist over and above the
15aggregate amount of taxes as certified by the Illinois
16Department of Revenue and paid under the Municipal Retailers'
17Occupation Tax Act and the Municipal Service Occupation Tax Act
18by retailers and servicemen, on transactions at places of
19business located in the redevelopment project area or State
20Sales Tax Boundary, as the case may be, during the base year
21which shall be the calendar year immediately prior to the year
22in which the municipality adopted tax increment allocation
23financing. For purposes of computing the aggregate amount of
24such taxes for base years occurring prior to 1985, the
25Department of Revenue shall determine the Initial Sales Tax
26Amounts for such taxes and deduct therefrom an amount equal to

 

 

10000SB0001sam005- 70 -LRB100 06371 MLM 26512 a

14% of the aggregate amount of taxes per year for each year the
2base year is prior to 1985, but not to exceed a total deduction
3of 12%. The amount so determined shall be known as the
4"Adjusted Initial Sales Tax Amounts". For purposes of
5determining the Municipal Sales Tax Increment, the Department
6of Revenue shall for each period subtract from the amount paid
7to the municipality from the Local Government Tax Fund arising
8from sales by retailers and servicemen on transactions located
9in the redevelopment project area or the State Sales Tax
10Boundary, as the case may be, the certified Initial Sales Tax
11Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
12Initial Sales Tax Amounts for the Municipal Retailers'
13Occupation Tax Act and the Municipal Service Occupation Tax
14Act. For the State Fiscal Year 1989, this calculation shall be
15made by utilizing the calendar year 1987 to determine the tax
16amounts received. For the State Fiscal Year 1990, this
17calculation shall be made by utilizing the period from January
181, 1988, until September 30, 1988, to determine the tax amounts
19received from retailers and servicemen pursuant to the
20Municipal Retailers' Occupation Tax and the Municipal Service
21Occupation Tax Act, which shall have deducted therefrom
22nine-twelfths of the certified Initial Sales Tax Amounts, the
23Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
24Tax Amounts as appropriate. For the State Fiscal Year 1991,
25this calculation shall be made by utilizing the period from
26October 1, 1988, to June 30, 1989, to determine the tax amounts

 

 

10000SB0001sam005- 71 -LRB100 06371 MLM 26512 a

1received from retailers and servicemen pursuant to the
2Municipal Retailers' Occupation Tax and the Municipal Service
3Occupation Tax Act which shall have deducted therefrom
4nine-twelfths of the certified Initial Sales Tax Amounts,
5Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
6Tax Amounts as appropriate. For every State Fiscal Year
7thereafter, the applicable period shall be the 12 months
8beginning July 1 and ending June 30 to determine the tax
9amounts received which shall have deducted therefrom the
10certified Initial Sales Tax Amounts, the Adjusted Initial Sales
11Tax Amounts or the Revised Initial Sales Tax Amounts, as the
12case may be.
13    (i) "Net State Sales Tax Increment" means the sum of the
14following: (a) 80% of the first $100,000 of State Sales Tax
15Increment annually generated within a State Sales Tax Boundary;
16(b) 60% of the amount in excess of $100,000 but not exceeding
17$500,000 of State Sales Tax Increment annually generated within
18a State Sales Tax Boundary; and (c) 40% of all amounts in
19excess of $500,000 of State Sales Tax Increment annually
20generated within a State Sales Tax Boundary. If, however, a
21municipality established a tax increment financing district in
22a county with a population in excess of 3,000,000 before
23January 1, 1986, and the municipality entered into a contract
24or issued bonds after January 1, 1986, but before December 31,
251986, to finance redevelopment project costs within a State
26Sales Tax Boundary, then the Net State Sales Tax Increment

 

 

10000SB0001sam005- 72 -LRB100 06371 MLM 26512 a

1means, for the fiscal years beginning July 1, 1990, and July 1,
21991, 100% of the State Sales Tax Increment annually generated
3within a State Sales Tax Boundary; and notwithstanding any
4other provision of this Act, for those fiscal years the
5Department of Revenue shall distribute to those municipalities
6100% of their Net State Sales Tax Increment before any
7distribution to any other municipality and regardless of
8whether or not those other municipalities will receive 100% of
9their Net State Sales Tax Increment. For Fiscal Year 1999, and
10every year thereafter until the year 2007, for any municipality
11that has not entered into a contract or has not issued bonds
12prior to June 1, 1988 to finance redevelopment project costs
13within a State Sales Tax Boundary, the Net State Sales Tax
14Increment shall be calculated as follows: By multiplying the
15Net State Sales Tax Increment by 90% in the State Fiscal Year
161999; 80% in the State Fiscal Year 2000; 70% in the State
17Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
18State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
19in the State Fiscal Year 2005; 20% in the State Fiscal Year
202006; and 10% in the State Fiscal Year 2007. No payment shall
21be made for State Fiscal Year 2008 and thereafter.
22    Municipalities that issued bonds in connection with a
23redevelopment project in a redevelopment project area within
24the State Sales Tax Boundary prior to July 29, 1991, or that
25entered into contracts in connection with a redevelopment
26project in a redevelopment project area before June 1, 1988,

 

 

10000SB0001sam005- 73 -LRB100 06371 MLM 26512 a

1shall continue to receive their proportional share of the
2Illinois Tax Increment Fund distribution until the date on
3which the redevelopment project is completed or terminated. If,
4however, a municipality that issued bonds in connection with a
5redevelopment project in a redevelopment project area within
6the State Sales Tax Boundary prior to July 29, 1991 retires the
7bonds prior to June 30, 2007 or a municipality that entered
8into contracts in connection with a redevelopment project in a
9redevelopment project area before June 1, 1988 completes the
10contracts prior to June 30, 2007, then so long as the
11redevelopment project is not completed or is not terminated,
12the Net State Sales Tax Increment shall be calculated,
13beginning on the date on which the bonds are retired or the
14contracts are completed, as follows: By multiplying the Net
15State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1650% in the State Fiscal Year 2003; 40% in the State Fiscal Year
172004; 30% in the State Fiscal Year 2005; 20% in the State
18Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
19payment shall be made for State Fiscal Year 2008 and
20thereafter. Refunding of any bonds issued prior to July 29,
211991, shall not alter the Net State Sales Tax Increment.
22    (j) "State Utility Tax Increment Amount" means an amount
23equal to the aggregate increase in State electric and gas tax
24charges imposed on owners and tenants, other than residential
25customers, of properties located within the redevelopment
26project area under Section 9-222 of the Public Utilities Act,

 

 

10000SB0001sam005- 74 -LRB100 06371 MLM 26512 a

1over and above the aggregate of such charges as certified by
2the Department of Revenue and paid by owners and tenants, other
3than residential customers, of properties within the
4redevelopment project area during the base year, which shall be
5the calendar year immediately prior to the year of the adoption
6of the ordinance authorizing tax increment allocation
7financing.
8    (k) "Net State Utility Tax Increment" means the sum of the
9following: (a) 80% of the first $100,000 of State Utility Tax
10Increment annually generated by a redevelopment project area;
11(b) 60% of the amount in excess of $100,000 but not exceeding
12$500,000 of the State Utility Tax Increment annually generated
13by a redevelopment project area; and (c) 40% of all amounts in
14excess of $500,000 of State Utility Tax Increment annually
15generated by a redevelopment project area. For the State Fiscal
16Year 1999, and every year thereafter until the year 2007, for
17any municipality that has not entered into a contract or has
18not issued bonds prior to June 1, 1988 to finance redevelopment
19project costs within a redevelopment project area, the Net
20State Utility Tax Increment shall be calculated as follows: By
21multiplying the Net State Utility Tax Increment by 90% in the
22State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
23in the State Fiscal Year 2001; 60% in the State Fiscal Year
242002; 50% in the State Fiscal Year 2003; 40% in the State
25Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
26State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.

 

 

10000SB0001sam005- 75 -LRB100 06371 MLM 26512 a

1No payment shall be made for the State Fiscal Year 2008 and
2thereafter.
3    Municipalities that issue bonds in connection with the
4redevelopment project during the period from June 1, 1988 until
53 years after the effective date of this Amendatory Act of 1988
6shall receive the Net State Utility Tax Increment, subject to
7appropriation, for 15 State Fiscal Years after the issuance of
8such bonds. For the 16th through the 20th State Fiscal Years
9after issuance of the bonds, the Net State Utility Tax
10Increment shall be calculated as follows: By multiplying the
11Net State Utility Tax Increment by 90% in year 16; 80% in year
1217; 70% in year 18; 60% in year 19; and 50% in year 20.
13Refunding of any bonds issued prior to June 1, 1988, shall not
14alter the revised Net State Utility Tax Increment payments set
15forth above.
16    (l) "Obligations" mean bonds, loans, debentures, notes,
17special certificates or other evidence of indebtedness issued
18by the municipality to carry out a redevelopment project or to
19refund outstanding obligations.
20    (m) "Payment in lieu of taxes" means those estimated tax
21revenues from real property in a redevelopment project area
22derived from real property that has been acquired by a
23municipality which according to the redevelopment project or
24plan is to be used for a private use which taxing districts
25would have received had a municipality not acquired the real
26property and adopted tax increment allocation financing and

 

 

10000SB0001sam005- 76 -LRB100 06371 MLM 26512 a

1which would result from levies made after the time of the
2adoption of tax increment allocation financing to the time the
3current equalized value of real property in the redevelopment
4project area exceeds the total initial equalized value of real
5property in said area.
6    (n) "Redevelopment plan" means the comprehensive program
7of the municipality for development or redevelopment intended
8by the payment of redevelopment project costs to reduce or
9eliminate those conditions the existence of which qualified the
10redevelopment project area as a "blighted area" or
11"conservation area" or combination thereof or "industrial park
12conservation area," and thereby to enhance the tax bases of the
13taxing districts which extend into the redevelopment project
14area, provided that, with respect to redevelopment project
15areas described in subsections (p-1) and (p-2), "redevelopment
16plan" means the comprehensive program of the affected
17municipality for the development of qualifying transit
18facilities. On and after November 1, 1999 (the effective date
19of Public Act 91-478), no redevelopment plan may be approved or
20amended that includes the development of vacant land (i) with a
21golf course and related clubhouse and other facilities or (ii)
22designated by federal, State, county, or municipal government
23as public land for outdoor recreational activities or for
24nature preserves and used for that purpose within 5 years prior
25to the adoption of the redevelopment plan. For the purpose of
26this subsection, "recreational activities" is limited to mean

 

 

10000SB0001sam005- 77 -LRB100 06371 MLM 26512 a

1camping and hunting. Each redevelopment plan shall set forth in
2writing the program to be undertaken to accomplish the
3objectives and shall include but not be limited to:
4        (A) an itemized list of estimated redevelopment
5    project costs;
6        (B) evidence indicating that the redevelopment project
7    area on the whole has not been subject to growth and
8    development through investment by private enterprise,
9    provided that such evidence shall not be required for any
10    redevelopment project area located within a transit
11    facility improvement area established pursuant to Section
12    11-74.4-3.3;
13        (C) an assessment of any financial impact of the
14    redevelopment project area on or any increased demand for
15    services from any taxing district affected by the plan and
16    any program to address such financial impact or increased
17    demand;
18        (D) the sources of funds to pay costs;
19        (E) the nature and term of the obligations to be
20    issued;
21        (F) the most recent equalized assessed valuation of the
22    redevelopment project area;
23        (G) an estimate as to the equalized assessed valuation
24    after redevelopment and the general land uses to apply in
25    the redevelopment project area;
26        (H) a commitment to fair employment practices and an

 

 

10000SB0001sam005- 78 -LRB100 06371 MLM 26512 a

1    affirmative action plan;
2        (I) if it concerns an industrial park conservation
3    area, the plan shall also include a general description of
4    any proposed developer, user and tenant of any property, a
5    description of the type, structure and general character of
6    the facilities to be developed, a description of the type,
7    class and number of new employees to be employed in the
8    operation of the facilities to be developed; and
9        (J) if property is to be annexed to the municipality,
10    the plan shall include the terms of the annexation
11    agreement.
12    The provisions of items (B) and (C) of this subsection (n)
13shall not apply to a municipality that before March 14, 1994
14(the effective date of Public Act 88-537) had fixed, either by
15its corporate authorities or by a commission designated under
16subsection (k) of Section 11-74.4-4, a time and place for a
17public hearing as required by subsection (a) of Section
1811-74.4-5. No redevelopment plan shall be adopted unless a
19municipality complies with all of the following requirements:
20        (1) The municipality finds that the redevelopment
21    project area on the whole has not been subject to growth
22    and development through investment by private enterprise
23    and would not reasonably be anticipated to be developed
24    without the adoption of the redevelopment plan, provided,
25    however, that such a finding shall not be required with
26    respect to any redevelopment project area located within a

 

 

10000SB0001sam005- 79 -LRB100 06371 MLM 26512 a

1    transit facility improvement area established pursuant to
2    Section 11-74.4-3.3.
3        (2) The municipality finds that the redevelopment plan
4    and project conform to the comprehensive plan for the
5    development of the municipality as a whole, or, for
6    municipalities with a population of 100,000 or more,
7    regardless of when the redevelopment plan and project was
8    adopted, the redevelopment plan and project either: (i)
9    conforms to the strategic economic development or
10    redevelopment plan issued by the designated planning
11    authority of the municipality, or (ii) includes land uses
12    that have been approved by the planning commission of the
13    municipality.
14        (3) The redevelopment plan establishes the estimated
15    dates of completion of the redevelopment project and
16    retirement of obligations issued to finance redevelopment
17    project costs. Those dates may not be later than the dates
18    set forth under Section 11-74.4-3.5.
19        A municipality may by municipal ordinance amend an
20    existing redevelopment plan to conform to this paragraph
21    (3) as amended by Public Act 91-478, which municipal
22    ordinance may be adopted without further hearing or notice
23    and without complying with the procedures provided in this
24    Act pertaining to an amendment to or the initial approval
25    of a redevelopment plan and project and designation of a
26    redevelopment project area.

 

 

10000SB0001sam005- 80 -LRB100 06371 MLM 26512 a

1        (3.5) The municipality finds, in the case of an
2    industrial park conservation area, also that the
3    municipality is a labor surplus municipality and that the
4    implementation of the redevelopment plan will reduce
5    unemployment, create new jobs and by the provision of new
6    facilities enhance the tax base of the taxing districts
7    that extend into the redevelopment project area.
8        (4) If any incremental revenues are being utilized
9    under Section 8(a)(1) or 8(a)(2) of this Act in
10    redevelopment project areas approved by ordinance after
11    January 1, 1986, the municipality finds: (a) that the
12    redevelopment project area would not reasonably be
13    developed without the use of such incremental revenues, and
14    (b) that such incremental revenues will be exclusively
15    utilized for the development of the redevelopment project
16    area.
17        (5) If: (a) the redevelopment plan will not result in
18    displacement of residents from 10 or more inhabited
19    residential units, and the municipality certifies in the
20    plan that such displacement will not result from the plan;
21    or (b) the redevelopment plan is for a redevelopment
22    project area located within a transit facility improvement
23    area established pursuant to Section 11-74.4-3.3, and the
24    applicable project is subject to the process for evaluation
25    of environmental effects under the National Environmental
26    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a

 

 

10000SB0001sam005- 81 -LRB100 06371 MLM 26512 a

1    housing impact study need not be performed. If, however,
2    the redevelopment plan would result in the displacement of
3    residents from 10 or more inhabited residential units, or
4    if the redevelopment project area contains 75 or more
5    inhabited residential units and no certification is made,
6    then the municipality shall prepare, as part of the
7    separate feasibility report required by subsection (a) of
8    Section 11-74.4-5, a housing impact study.
9        Part I of the housing impact study shall include (i)
10    data as to whether the residential units are single family
11    or multi-family units, (ii) the number and type of rooms
12    within the units, if that information is available, (iii)
13    whether the units are inhabited or uninhabited, as
14    determined not less than 45 days before the date that the
15    ordinance or resolution required by subsection (a) of
16    Section 11-74.4-5 is passed, and (iv) data as to the racial
17    and ethnic composition of the residents in the inhabited
18    residential units. The data requirement as to the racial
19    and ethnic composition of the residents in the inhabited
20    residential units shall be deemed to be fully satisfied by
21    data from the most recent federal census.
22        Part II of the housing impact study shall identify the
23    inhabited residential units in the proposed redevelopment
24    project area that are to be or may be removed. If inhabited
25    residential units are to be removed, then the housing
26    impact study shall identify (i) the number and location of

 

 

10000SB0001sam005- 82 -LRB100 06371 MLM 26512 a

1    those units that will or may be removed, (ii) the
2    municipality's plans for relocation assistance for those
3    residents in the proposed redevelopment project area whose
4    residences are to be removed, (iii) the availability of
5    replacement housing for those residents whose residences
6    are to be removed, and shall identify the type, location,
7    and cost of the housing, and (iv) the type and extent of
8    relocation assistance to be provided.
9        (6) On and after November 1, 1999, the housing impact
10    study required by paragraph (5) shall be incorporated in
11    the redevelopment plan for the redevelopment project area.
12        (7) On and after November 1, 1999, no redevelopment
13    plan shall be adopted, nor an existing plan amended, nor
14    shall residential housing that is occupied by households of
15    low-income and very low-income persons in currently
16    existing redevelopment project areas be removed after
17    November 1, 1999 unless the redevelopment plan provides,
18    with respect to inhabited housing units that are to be
19    removed for households of low-income and very low-income
20    persons, affordable housing and relocation assistance not
21    less than that which would be provided under the federal
22    Uniform Relocation Assistance and Real Property
23    Acquisition Policies Act of 1970 and the regulations under
24    that Act, including the eligibility criteria. Affordable
25    housing may be either existing or newly constructed
26    housing. For purposes of this paragraph (7), "low-income

 

 

10000SB0001sam005- 83 -LRB100 06371 MLM 26512 a

1    households", "very low-income households", and "affordable
2    housing" have the meanings set forth in the Illinois
3    Affordable Housing Act. The municipality shall make a good
4    faith effort to ensure that this affordable housing is
5    located in or near the redevelopment project area within
6    the municipality.
7        (8) On and after November 1, 1999, if, after the
8    adoption of the redevelopment plan for the redevelopment
9    project area, any municipality desires to amend its
10    redevelopment plan to remove more inhabited residential
11    units than specified in its original redevelopment plan,
12    that change shall be made in accordance with the procedures
13    in subsection (c) of Section 11-74.4-5.
14        (9) For redevelopment project areas designated prior
15    to November 1, 1999, the redevelopment plan may be amended
16    without further joint review board meeting or hearing,
17    provided that the municipality shall give notice of any
18    such changes by mail to each affected taxing district and
19    registrant on the interested party registry, to authorize
20    the municipality to expend tax increment revenues for
21    redevelopment project costs defined by paragraphs (5) and
22    (7.5), subparagraphs (E) and (F) of paragraph (11), and
23    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
24    long as the changes do not increase the total estimated
25    redevelopment project costs set out in the redevelopment
26    plan by more than 5% after adjustment for inflation from

 

 

10000SB0001sam005- 84 -LRB100 06371 MLM 26512 a

1    the date the plan was adopted.
2    (o) "Redevelopment project" means any public and private
3development project in furtherance of the objectives of a
4redevelopment plan. On and after November 1, 1999 (the
5effective date of Public Act 91-478), no redevelopment plan may
6be approved or amended that includes the development of vacant
7land (i) with a golf course and related clubhouse and other
8facilities or (ii) designated by federal, State, county, or
9municipal government as public land for outdoor recreational
10activities or for nature preserves and used for that purpose
11within 5 years prior to the adoption of the redevelopment plan.
12For the purpose of this subsection, "recreational activities"
13is limited to mean camping and hunting.
14    (p) "Redevelopment project area" means an area designated
15by the municipality, which is not less in the aggregate than 1
161/2 acres and in respect to which the municipality has made a
17finding that there exist conditions which cause the area to be
18classified as an industrial park conservation area or a
19blighted area or a conservation area, or a combination of both
20blighted areas and conservation areas.
21    (p-1) Notwithstanding any provision of this Act to the
22contrary, on and after August 25, 2009 (the effective date of
23Public Act 96-680), a redevelopment project area may include
24areas within a one-half mile radius of an existing or proposed
25Regional Transportation Authority Suburban Transit Access
26Route (STAR Line) station without a finding that the area is

 

 

10000SB0001sam005- 85 -LRB100 06371 MLM 26512 a

1classified as an industrial park conservation area, a blighted
2area, a conservation area, or a combination thereof, but only
3if the municipality receives unanimous consent from the joint
4review board created to review the proposed redevelopment
5project area.
6    (p-2) Notwithstanding any provision of this Act to the
7contrary, on and after the effective date of this amendatory
8Act of the 99th General Assembly, a redevelopment project area
9may include areas within a transit facility improvement area
10that has been established pursuant to Section 11-74.4-3.3
11without a finding that the area is classified as an industrial
12park conservation area, a blighted area, a conservation area,
13or any combination thereof.
14    (q) "Redevelopment project costs", except for
15redevelopment project areas created pursuant to subsection
16subsections (p-1) or (p-2), means and includes the sum total of
17all reasonable or necessary costs incurred or estimated to be
18incurred, and any such costs incidental to a redevelopment plan
19and a redevelopment project. Such costs include, without
20limitation, the following:
21        (1) Costs of studies, surveys, development of plans,
22    and specifications, implementation and administration of
23    the redevelopment plan including but not limited to staff
24    and professional service costs for architectural,
25    engineering, legal, financial, planning or other services,
26    provided however that no charges for professional services

 

 

10000SB0001sam005- 86 -LRB100 06371 MLM 26512 a

1    may be based on a percentage of the tax increment
2    collected; except that on and after November 1, 1999 (the
3    effective date of Public Act 91-478), no contracts for
4    professional services, excluding architectural and
5    engineering services, may be entered into if the terms of
6    the contract extend beyond a period of 3 years. In
7    addition, "redevelopment project costs" shall not include
8    lobbying expenses. After consultation with the
9    municipality, each tax increment consultant or advisor to a
10    municipality that plans to designate or has designated a
11    redevelopment project area shall inform the municipality
12    in writing of any contracts that the consultant or advisor
13    has entered into with entities or individuals that have
14    received, or are receiving, payments financed by tax
15    increment revenues produced by the redevelopment project
16    area with respect to which the consultant or advisor has
17    performed, or will be performing, service for the
18    municipality. This requirement shall be satisfied by the
19    consultant or advisor before the commencement of services
20    for the municipality and thereafter whenever any other
21    contracts with those individuals or entities are executed
22    by the consultant or advisor;
23        (1.5) After July 1, 1999, annual administrative costs
24    shall not include general overhead or administrative costs
25    of the municipality that would still have been incurred by
26    the municipality if the municipality had not designated a

 

 

10000SB0001sam005- 87 -LRB100 06371 MLM 26512 a

1    redevelopment project area or approved a redevelopment
2    plan;
3        (1.6) The cost of marketing sites within the
4    redevelopment project area to prospective businesses,
5    developers, and investors;
6        (2) Property assembly costs, including but not limited
7    to acquisition of land and other property, real or
8    personal, or rights or interests therein, demolition of
9    buildings, site preparation, site improvements that serve
10    as an engineered barrier addressing ground level or below
11    ground environmental contamination, including, but not
12    limited to parking lots and other concrete or asphalt
13    barriers, and the clearing and grading of land;
14        (3) Costs of rehabilitation, reconstruction or repair
15    or remodeling of existing public or private buildings,
16    fixtures, and leasehold improvements; and the cost of
17    replacing an existing public building if pursuant to the
18    implementation of a redevelopment project the existing
19    public building is to be demolished to use the site for
20    private investment or devoted to a different use requiring
21    private investment; including any direct or indirect costs
22    relating to Green Globes or LEED certified construction
23    elements or construction elements with an equivalent
24    certification;
25        (4) Costs of the construction of public works or
26    improvements, including any direct or indirect costs

 

 

10000SB0001sam005- 88 -LRB100 06371 MLM 26512 a

1    relating to Green Globes or LEED certified construction
2    elements or construction elements with an equivalent
3    certification, except that on and after November 1, 1999,
4    redevelopment project costs shall not include the cost of
5    constructing a new municipal public building principally
6    used to provide offices, storage space, or conference
7    facilities or vehicle storage, maintenance, or repair for
8    administrative, public safety, or public works personnel
9    and that is not intended to replace an existing public
10    building as provided under paragraph (3) of subsection (q)
11    of Section 11-74.4-3 unless either (i) the construction of
12    the new municipal building implements a redevelopment
13    project that was included in a redevelopment plan that was
14    adopted by the municipality prior to November 1, 1999, (ii)
15    the municipality makes a reasonable determination in the
16    redevelopment plan, supported by information that provides
17    the basis for that determination, that the new municipal
18    building is required to meet an increase in the need for
19    public safety purposes anticipated to result from the
20    implementation of the redevelopment plan, or (iii) the new
21    municipal public building is for the storage, maintenance,
22    or repair of transit vehicles and is located in a transit
23    facility improvement area that has been established
24    pursuant to Section 11-74.4-3.3;
25        (5) Costs of job training and retraining projects,
26    including the cost of "welfare to work" programs

 

 

10000SB0001sam005- 89 -LRB100 06371 MLM 26512 a

1    implemented by businesses located within the redevelopment
2    project area;
3        (6) Financing costs, including but not limited to all
4    necessary and incidental expenses related to the issuance
5    of obligations and which may include payment of interest on
6    any obligations issued hereunder including interest
7    accruing during the estimated period of construction of any
8    redevelopment project for which such obligations are
9    issued and for not exceeding 36 months thereafter and
10    including reasonable reserves related thereto;
11        (7) To the extent the municipality by written agreement
12    accepts and approves the same, all or a portion of a taxing
13    district's capital costs resulting from the redevelopment
14    project necessarily incurred or to be incurred within a
15    taxing district in furtherance of the objectives of the
16    redevelopment plan and project; .
17        (7.5) For redevelopment project areas designated (or
18    redevelopment project areas amended to add or increase the
19    number of tax-increment-financing assisted housing units)
20    on or after November 1, 1999, an elementary, secondary, or
21    unit school district's increased costs attributable to
22    assisted housing units located within the redevelopment
23    project area for which the developer or redeveloper
24    receives financial assistance through an agreement with
25    the municipality or because the municipality incurs the
26    cost of necessary infrastructure improvements within the

 

 

10000SB0001sam005- 90 -LRB100 06371 MLM 26512 a

1    boundaries of the assisted housing sites necessary for the
2    completion of that housing as authorized by this Act, and
3    which costs shall be paid by the municipality from the
4    Special Tax Allocation Fund when the tax increment revenue
5    is received as a result of the assisted housing units and
6    shall be calculated annually as follows:
7            (A) for foundation districts, excluding any school
8        district in a municipality with a population in excess
9        of 1,000,000, by multiplying the district's increase
10        in attendance resulting from the net increase in new
11        students enrolled in that school district who reside in
12        housing units within the redevelopment project area
13        that have received financial assistance through an
14        agreement with the municipality or because the
15        municipality incurs the cost of necessary
16        infrastructure improvements within the boundaries of
17        the housing sites necessary for the completion of that
18        housing as authorized by this Act since the designation
19        of the redevelopment project area by the most recently
20        available per capita tuition cost as defined in Section
21        10-20.12a of the School Code less any increase in
22        general State aid as defined in Section 18-8.05 of the
23        School Code or evidence-based funding as defined in
24        Section 18-8.15 of the School Code attributable to
25        these added new students subject to the following
26        annual limitations:

 

 

10000SB0001sam005- 91 -LRB100 06371 MLM 26512 a

1                (i) for unit school districts with a district
2            average 1995-96 Per Capita Tuition Charge of less
3            than $5,900, no more than 25% of the total amount
4            of property tax increment revenue produced by
5            those housing units that have received tax
6            increment finance assistance under this Act;
7                (ii) for elementary school districts with a
8            district average 1995-96 Per Capita Tuition Charge
9            of less than $5,900, no more than 17% of the total
10            amount of property tax increment revenue produced
11            by those housing units that have received tax
12            increment finance assistance under this Act; and
13                (iii) for secondary school districts with a
14            district average 1995-96 Per Capita Tuition Charge
15            of less than $5,900, no more than 8% of the total
16            amount of property tax increment revenue produced
17            by those housing units that have received tax
18            increment finance assistance under this Act.
19            (B) For alternate method districts, flat grant
20        districts, and foundation districts with a district
21        average 1995-96 Per Capita Tuition Charge equal to or
22        more than $5,900, excluding any school district with a
23        population in excess of 1,000,000, by multiplying the
24        district's increase in attendance resulting from the
25        net increase in new students enrolled in that school
26        district who reside in housing units within the

 

 

10000SB0001sam005- 92 -LRB100 06371 MLM 26512 a

1        redevelopment project area that have received
2        financial assistance through an agreement with the
3        municipality or because the municipality incurs the
4        cost of necessary infrastructure improvements within
5        the boundaries of the housing sites necessary for the
6        completion of that housing as authorized by this Act
7        since the designation of the redevelopment project
8        area by the most recently available per capita tuition
9        cost as defined in Section 10-20.12a of the School Code
10        less any increase in general state aid as defined in
11        Section 18-8.05 of the School Code or evidence-based
12        funding as defined in Section 18-8.15 of the School
13        Code attributable to these added new students subject
14        to the following annual limitations:
15                (i) for unit school districts, no more than 40%
16            of the total amount of property tax increment
17            revenue produced by those housing units that have
18            received tax increment finance assistance under
19            this Act;
20                (ii) for elementary school districts, no more
21            than 27% of the total amount of property tax
22            increment revenue produced by those housing units
23            that have received tax increment finance
24            assistance under this Act; and
25                (iii) for secondary school districts, no more
26            than 13% of the total amount of property tax

 

 

10000SB0001sam005- 93 -LRB100 06371 MLM 26512 a

1            increment revenue produced by those housing units
2            that have received tax increment finance
3            assistance under this Act.
4            (C) For any school district in a municipality with
5        a population in excess of 1,000,000, the following
6        restrictions shall apply to the reimbursement of
7        increased costs under this paragraph (7.5):
8                (i) no increased costs shall be reimbursed
9            unless the school district certifies that each of
10            the schools affected by the assisted housing
11            project is at or over its student capacity;
12                (ii) the amount reimbursable shall be reduced
13            by the value of any land donated to the school
14            district by the municipality or developer, and by
15            the value of any physical improvements made to the
16            schools by the municipality or developer; and
17                (iii) the amount reimbursed may not affect
18            amounts otherwise obligated by the terms of any
19            bonds, notes, or other funding instruments, or the
20            terms of any redevelopment agreement.
21        Any school district seeking payment under this
22        paragraph (7.5) shall, after July 1 and before
23        September 30 of each year, provide the municipality
24        with reasonable evidence to support its claim for
25        reimbursement before the municipality shall be
26        required to approve or make the payment to the school

 

 

10000SB0001sam005- 94 -LRB100 06371 MLM 26512 a

1        district. If the school district fails to provide the
2        information during this period in any year, it shall
3        forfeit any claim to reimbursement for that year.
4        School districts may adopt a resolution waiving the
5        right to all or a portion of the reimbursement
6        otherwise required by this paragraph (7.5). By
7        acceptance of this reimbursement the school district
8        waives the right to directly or indirectly set aside,
9        modify, or contest in any manner the establishment of
10        the redevelopment project area or projects;
11        (7.7) For redevelopment project areas designated (or
12    redevelopment project areas amended to add or increase the
13    number of tax-increment-financing assisted housing units)
14    on or after January 1, 2005 (the effective date of Public
15    Act 93-961), a public library district's increased costs
16    attributable to assisted housing units located within the
17    redevelopment project area for which the developer or
18    redeveloper receives financial assistance through an
19    agreement with the municipality or because the
20    municipality incurs the cost of necessary infrastructure
21    improvements within the boundaries of the assisted housing
22    sites necessary for the completion of that housing as
23    authorized by this Act shall be paid to the library
24    district by the municipality from the Special Tax
25    Allocation Fund when the tax increment revenue is received
26    as a result of the assisted housing units. This paragraph

 

 

10000SB0001sam005- 95 -LRB100 06371 MLM 26512 a

1    (7.7) applies only if (i) the library district is located
2    in a county that is subject to the Property Tax Extension
3    Limitation Law or (ii) the library district is not located
4    in a county that is subject to the Property Tax Extension
5    Limitation Law but the district is prohibited by any other
6    law from increasing its tax levy rate without a prior voter
7    referendum.
8        The amount paid to a library district under this
9    paragraph (7.7) shall be calculated by multiplying (i) the
10    net increase in the number of persons eligible to obtain a
11    library card in that district who reside in housing units
12    within the redevelopment project area that have received
13    financial assistance through an agreement with the
14    municipality or because the municipality incurs the cost of
15    necessary infrastructure improvements within the
16    boundaries of the housing sites necessary for the
17    completion of that housing as authorized by this Act since
18    the designation of the redevelopment project area by (ii)
19    the per-patron cost of providing library services so long
20    as it does not exceed $120. The per-patron cost shall be
21    the Total Operating Expenditures Per Capita for the library
22    in the previous fiscal year. The municipality may deduct
23    from the amount that it must pay to a library district
24    under this paragraph any amount that it has voluntarily
25    paid to the library district from the tax increment
26    revenue. The amount paid to a library district under this

 

 

10000SB0001sam005- 96 -LRB100 06371 MLM 26512 a

1    paragraph (7.7) shall be no more than 2% of the amount
2    produced by the assisted housing units and deposited into
3    the Special Tax Allocation Fund.
4        A library district is not eligible for any payment
5    under this paragraph (7.7) unless the library district has
6    experienced an increase in the number of patrons from the
7    municipality that created the tax-increment-financing
8    district since the designation of the redevelopment
9    project area.
10        Any library district seeking payment under this
11    paragraph (7.7) shall, after July 1 and before September 30
12    of each year, provide the municipality with convincing
13    evidence to support its claim for reimbursement before the
14    municipality shall be required to approve or make the
15    payment to the library district. If the library district
16    fails to provide the information during this period in any
17    year, it shall forfeit any claim to reimbursement for that
18    year. Library districts may adopt a resolution waiving the
19    right to all or a portion of the reimbursement otherwise
20    required by this paragraph (7.7). By acceptance of such
21    reimbursement, the library district shall forfeit any
22    right to directly or indirectly set aside, modify, or
23    contest in any manner whatsoever the establishment of the
24    redevelopment project area or projects;
25        (8) Relocation costs to the extent that a municipality
26    determines that relocation costs shall be paid or is

 

 

10000SB0001sam005- 97 -LRB100 06371 MLM 26512 a

1    required to make payment of relocation costs by federal or
2    State law or in order to satisfy subparagraph (7) of
3    subsection (n);
4        (9) Payment in lieu of taxes;
5        (10) Costs of job training, retraining, advanced
6    vocational education or career education, including but
7    not limited to courses in occupational, semi-technical or
8    technical fields leading directly to employment, incurred
9    by one or more taxing districts, provided that such costs
10    (i) are related to the establishment and maintenance of
11    additional job training, advanced vocational education or
12    career education programs for persons employed or to be
13    employed by employers located in a redevelopment project
14    area; and (ii) when incurred by a taxing district or taxing
15    districts other than the municipality, are set forth in a
16    written agreement by or among the municipality and the
17    taxing district or taxing districts, which agreement
18    describes the program to be undertaken, including but not
19    limited to the number of employees to be trained, a
20    description of the training and services to be provided,
21    the number and type of positions available or to be
22    available, itemized costs of the program and sources of
23    funds to pay for the same, and the term of the agreement.
24    Such costs include, specifically, the payment by community
25    college districts of costs pursuant to Sections 3-37, 3-38,
26    3-40 and 3-40.1 of the Public Community College Act and by

 

 

10000SB0001sam005- 98 -LRB100 06371 MLM 26512 a

1    school districts of costs pursuant to Sections 10-22.20a
2    and 10-23.3a of the The School Code;
3        (11) Interest cost incurred by a redeveloper related to
4    the construction, renovation or rehabilitation of a
5    redevelopment project provided that:
6            (A) such costs are to be paid directly from the
7        special tax allocation fund established pursuant to
8        this Act;
9            (B) such payments in any one year may not exceed
10        30% of the annual interest costs incurred by the
11        redeveloper with regard to the redevelopment project
12        during that year;
13            (C) if there are not sufficient funds available in
14        the special tax allocation fund to make the payment
15        pursuant to this paragraph (11) then the amounts so due
16        shall accrue and be payable when sufficient funds are
17        available in the special tax allocation fund;
18            (D) the total of such interest payments paid
19        pursuant to this Act may not exceed 30% of the total
20        (i) cost paid or incurred by the redeveloper for the
21        redevelopment project plus (ii) redevelopment project
22        costs excluding any property assembly costs and any
23        relocation costs incurred by a municipality pursuant
24        to this Act; and
25            (E) the cost limits set forth in subparagraphs (B)
26        and (D) of paragraph (11) shall be modified for the

 

 

10000SB0001sam005- 99 -LRB100 06371 MLM 26512 a

1        financing of rehabilitated or new housing units for
2        low-income households and very low-income households,
3        as defined in Section 3 of the Illinois Affordable
4        Housing Act. The percentage of 75% shall be substituted
5        for 30% in subparagraphs (B) and (D) of paragraph (11);
6        and .
7            (F) instead Instead of the eligible costs provided
8        by subparagraphs (B) and (D) of paragraph (11), as
9        modified by this subparagraph, and notwithstanding any
10        other provisions of this Act to the contrary, the
11        municipality may pay from tax increment revenues up to
12        50% of the cost of construction of new housing units to
13        be occupied by low-income households and very
14        low-income households as defined in Section 3 of the
15        Illinois Affordable Housing Act. The cost of
16        construction of those units may be derived from the
17        proceeds of bonds issued by the municipality under this
18        Act or other constitutional or statutory authority or
19        from other sources of municipal revenue that may be
20        reimbursed from tax increment revenues or the proceeds
21        of bonds issued to finance the construction of that
22        housing.
23            The eligible costs provided under this
24        subparagraph (F) of paragraph (11) shall be an eligible
25        cost for the construction, renovation, and
26        rehabilitation of all low and very low-income housing

 

 

10000SB0001sam005- 100 -LRB100 06371 MLM 26512 a

1        units, as defined in Section 3 of the Illinois
2        Affordable Housing Act, within the redevelopment
3        project area. If the low and very low-income units are
4        part of a residential redevelopment project that
5        includes units not affordable to low and very
6        low-income households, only the low and very
7        low-income units shall be eligible for benefits under
8        this subparagraph (F) of paragraph (11). The standards
9        for maintaining the occupancy by low-income households
10        and very low-income households, as defined in Section 3
11        of the Illinois Affordable Housing Act, of those units
12        constructed with eligible costs made available under
13        the provisions of this subparagraph (F) of paragraph
14        (11) shall be established by guidelines adopted by the
15        municipality. The responsibility for annually
16        documenting the initial occupancy of the units by
17        low-income households and very low-income households,
18        as defined in Section 3 of the Illinois Affordable
19        Housing Act, shall be that of the then current owner of
20        the property. For ownership units, the guidelines will
21        provide, at a minimum, for a reasonable recapture of
22        funds, or other appropriate methods designed to
23        preserve the original affordability of the ownership
24        units. For rental units, the guidelines will provide,
25        at a minimum, for the affordability of rent to low and
26        very low-income households. As units become available,

 

 

10000SB0001sam005- 101 -LRB100 06371 MLM 26512 a

1        they shall be rented to income-eligible tenants. The
2        municipality may modify these guidelines from time to
3        time; the guidelines, however, shall be in effect for
4        as long as tax increment revenue is being used to pay
5        for costs associated with the units or for the
6        retirement of bonds issued to finance the units or for
7        the life of the redevelopment project area, whichever
8        is later; .
9        (11.5) If the redevelopment project area is located
10    within a municipality with a population of more than
11    100,000, the cost of day care services for children of
12    employees from low-income families working for businesses
13    located within the redevelopment project area and all or a
14    portion of the cost of operation of day care centers
15    established by redevelopment project area businesses to
16    serve employees from low-income families working in
17    businesses located in the redevelopment project area. For
18    the purposes of this paragraph, "low-income families"
19    means families whose annual income does not exceed 80% of
20    the municipal, county, or regional median income, adjusted
21    for family size, as the annual income and municipal,
22    county, or regional median income are determined from time
23    to time by the United States Department of Housing and
24    Urban Development.
25    (12) Unless explicitly stated herein the cost of
26construction of new privately-owned buildings shall not be an

 

 

10000SB0001sam005- 102 -LRB100 06371 MLM 26512 a

1eligible redevelopment project cost.
2    (13) After November 1, 1999 (the effective date of Public
3Act 91-478), none of the redevelopment project costs enumerated
4in this subsection shall be eligible redevelopment project
5costs if those costs would provide direct financial support to
6a retail entity initiating operations in the redevelopment
7project area while terminating operations at another Illinois
8location within 10 miles of the redevelopment project area but
9outside the boundaries of the redevelopment project area
10municipality. For purposes of this paragraph, termination
11means a closing of a retail operation that is directly related
12to the opening of the same operation or like retail entity
13owned or operated by more than 50% of the original ownership in
14a redevelopment project area, but it does not mean closing an
15operation for reasons beyond the control of the retail entity,
16as documented by the retail entity, subject to a reasonable
17finding by the municipality that the current location contained
18inadequate space, had become economically obsolete, or was no
19longer a viable location for the retailer or serviceman.
20    (14) No cost shall be a redevelopment project cost in a
21redevelopment project area if used to demolish, remove, or
22substantially modify a historic resource, after August 26, 2008
23(the effective date of Public Act 95-934), unless no prudent
24and feasible alternative exists. "Historic resource" for the
25purpose of this paragraph item (14) means (i) a place or
26structure that is included or eligible for inclusion on the

 

 

10000SB0001sam005- 103 -LRB100 06371 MLM 26512 a

1National Register of Historic Places or (ii) a contributing
2structure in a district on the National Register of Historic
3Places. This paragraph item (14) does not apply to a place or
4structure for which demolition, removal, or modification is
5subject to review by the preservation agency of a Certified
6Local Government designated as such by the National Park
7Service of the United States Department of the Interior.
8    If a special service area has been established pursuant to
9the Special Service Area Tax Act or Special Service Area Tax
10Law, then any tax increment revenues derived from the tax
11imposed pursuant to the Special Service Area Tax Act or Special
12Service Area Tax Law may be used within the redevelopment
13project area for the purposes permitted by that Act or Law as
14well as the purposes permitted by this Act.
15    (q-1) For redevelopment project areas created pursuant to
16subsection (p-1), redevelopment project costs are limited to
17those costs in paragraph (q) that are related to the existing
18or proposed Regional Transportation Authority Suburban Transit
19Access Route (STAR Line) station.
20    (q-2) For a redevelopment project area located within a
21transit facility improvement area established pursuant to
22Section 11-74.4-3.3, redevelopment project costs means those
23costs described in subsection (q) that are related to the
24construction, reconstruction, rehabilitation, remodeling, or
25repair of any existing or proposed transit facility.
26    (r) "State Sales Tax Boundary" means the redevelopment

 

 

10000SB0001sam005- 104 -LRB100 06371 MLM 26512 a

1project area or the amended redevelopment project area
2boundaries which are determined pursuant to subsection (9) of
3Section 11-74.4-8a of this Act. The Department of Revenue shall
4certify pursuant to subsection (9) of Section 11-74.4-8a the
5appropriate boundaries eligible for the determination of State
6Sales Tax Increment.
7    (s) "State Sales Tax Increment" means an amount equal to
8the increase in the aggregate amount of taxes paid by retailers
9and servicemen, other than retailers and servicemen subject to
10the Public Utilities Act, on transactions at places of business
11located within a State Sales Tax Boundary pursuant to the
12Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
13Tax Act, and the Service Occupation Tax Act, except such
14portion of such increase that is paid into the State and Local
15Sales Tax Reform Fund, the Local Government Distributive Fund,
16the Local Government Tax Fund and the County and Mass Transit
17District Fund, for as long as State participation exists, over
18and above the Initial Sales Tax Amounts, Adjusted Initial Sales
19Tax Amounts or the Revised Initial Sales Tax Amounts for such
20taxes as certified by the Department of Revenue and paid under
21those Acts by retailers and servicemen on transactions at
22places of business located within the State Sales Tax Boundary
23during the base year which shall be the calendar year
24immediately prior to the year in which the municipality adopted
25tax increment allocation financing, less 3.0% of such amounts
26generated under the Retailers' Occupation Tax Act, Use Tax Act

 

 

10000SB0001sam005- 105 -LRB100 06371 MLM 26512 a

1and Service Use Tax Act and the Service Occupation Tax Act,
2which sum shall be appropriated to the Department of Revenue to
3cover its costs of administering and enforcing this Section.
4For purposes of computing the aggregate amount of such taxes
5for base years occurring prior to 1985, the Department of
6Revenue shall compute the Initial Sales Tax Amount for such
7taxes and deduct therefrom an amount equal to 4% of the
8aggregate amount of taxes per year for each year the base year
9is prior to 1985, but not to exceed a total deduction of 12%.
10The amount so determined shall be known as the "Adjusted
11Initial Sales Tax Amount". For purposes of determining the
12State Sales Tax Increment the Department of Revenue shall for
13each period subtract from the tax amounts received from
14retailers and servicemen on transactions located in the State
15Sales Tax Boundary, the certified Initial Sales Tax Amounts,
16Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
17Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
18the Service Use Tax Act and the Service Occupation Tax Act. For
19the State Fiscal Year 1989 this calculation shall be made by
20utilizing the calendar year 1987 to determine the tax amounts
21received. For the State Fiscal Year 1990, this calculation
22shall be made by utilizing the period from January 1, 1988,
23until September 30, 1988, to determine the tax amounts received
24from retailers and servicemen, which shall have deducted
25therefrom nine-twelfths of the certified Initial Sales Tax
26Amounts, Adjusted Initial Sales Tax Amounts or the Revised

 

 

10000SB0001sam005- 106 -LRB100 06371 MLM 26512 a

1Initial Sales Tax Amounts as appropriate. For the State Fiscal
2Year 1991, this calculation shall be made by utilizing the
3period from October 1, 1988, until June 30, 1989, to determine
4the tax amounts received from retailers and servicemen, which
5shall have deducted therefrom nine-twelfths of the certified
6Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
7Amounts or the Revised Initial Sales Tax Amounts as
8appropriate. For every State Fiscal Year thereafter, the
9applicable period shall be the 12 months beginning July 1 and
10ending on June 30, to determine the tax amounts received which
11shall have deducted therefrom the certified Initial Sales Tax
12Amounts, Adjusted Initial Sales Tax Amounts or the Revised
13Initial Sales Tax Amounts. Municipalities intending to receive
14a distribution of State Sales Tax Increment must report a list
15of retailers to the Department of Revenue by October 31, 1988
16and by July 31, of each year thereafter.
17    (t) "Taxing districts" means counties, townships, cities
18and incorporated towns and villages, school, road, park,
19sanitary, mosquito abatement, forest preserve, public health,
20fire protection, river conservancy, tuberculosis sanitarium
21and any other municipal corporations or districts with the
22power to levy taxes.
23    (u) "Taxing districts' capital costs" means those costs of
24taxing districts for capital improvements that are found by the
25municipal corporate authorities to be necessary and directly
26result from the redevelopment project.

 

 

10000SB0001sam005- 107 -LRB100 06371 MLM 26512 a

1    (v) As used in subsection (a) of Section 11-74.4-3 of this
2Act, "vacant land" means any parcel or combination of parcels
3of real property without industrial, commercial, and
4residential buildings which has not been used for commercial
5agricultural purposes within 5 years prior to the designation
6of the redevelopment project area, unless the parcel is
7included in an industrial park conservation area or the parcel
8has been subdivided; provided that if the parcel was part of a
9larger tract that has been divided into 3 or more smaller
10tracts that were accepted for recording during the period from
111950 to 1990, then the parcel shall be deemed to have been
12subdivided, and all proceedings and actions of the municipality
13taken in that connection with respect to any previously
14approved or designated redevelopment project area or amended
15redevelopment project area are hereby validated and hereby
16declared to be legally sufficient for all purposes of this Act.
17For purposes of this Section and only for land subject to the
18subdivision requirements of the Plat Act, land is subdivided
19when the original plat of the proposed Redevelopment Project
20Area or relevant portion thereof has been properly certified,
21acknowledged, approved, and recorded or filed in accordance
22with the Plat Act and a preliminary plat, if any, for any
23subsequent phases of the proposed Redevelopment Project Area or
24relevant portion thereof has been properly approved and filed
25in accordance with the applicable ordinance of the
26municipality.

 

 

10000SB0001sam005- 108 -LRB100 06371 MLM 26512 a

1    (w) "Annual Total Increment" means the sum of each
2municipality's annual Net Sales Tax Increment and each
3municipality's annual Net Utility Tax Increment. The ratio of
4the Annual Total Increment of each municipality to the Annual
5Total Increment for all municipalities, as most recently
6calculated by the Department, shall determine the proportional
7shares of the Illinois Tax Increment Fund to be distributed to
8each municipality.
9    (x) "LEED certified" means any certification level of
10construction elements by a qualified Leadership in Energy and
11Environmental Design Accredited Professional as determined by
12the U.S. Green Building Council.
13    (y) "Green Globes certified" means any certification level
14of construction elements by a qualified Green Globes
15Professional as determined by the Green Building Initiative.
16(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
17    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
18    Sec. 11-74.4-8. Tax increment allocation financing. A
19municipality may not adopt tax increment financing in a
20redevelopment project area after the effective date of this
21amendatory Act of 1997 that will encompass an area that is
22currently included in an enterprise zone created under the
23Illinois Enterprise Zone Act unless that municipality,
24pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
25amends the enterprise zone designating ordinance to limit the

 

 

10000SB0001sam005- 109 -LRB100 06371 MLM 26512 a

1eligibility for tax abatements as provided in Section 5.4.1 of
2the Illinois Enterprise Zone Act. A municipality, at the time a
3redevelopment project area is designated, may adopt tax
4increment allocation financing by passing an ordinance
5providing that the ad valorem taxes, if any, arising from the
6levies upon taxable real property in such redevelopment project
7area by taxing districts and tax rates determined in the manner
8provided in paragraph (c) of Section 11-74.4-9 each year after
9the effective date of the ordinance until redevelopment project
10costs and all municipal obligations financing redevelopment
11project costs incurred under this Division have been paid shall
12be divided as follows, provided, however, that with respect to
13any redevelopment project area located within a transit
14facility improvement area established pursuant to Section
1511-74.4-3.3 in a municipality with a population of 1,000,000 or
16more, ad valorem taxes, if any, arising from the levies upon
17taxable real property in such redevelopment project area shall
18be allocated as specifically provided in this Section:
19        (a) That portion of taxes levied upon each taxable lot,
20    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 in the
24    redevelopment project area shall be allocated to and when
25    collected shall be paid by the county collector to the
26    respective affected taxing districts in the manner

 

 

10000SB0001sam005- 110 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 111 -LRB100 06371 MLM 26512 a

1    were last extended against the taxable lot, block, track,
2    or parcel of real property in the manner provided in
3    subsection (c) of Section 11-74.4-9 by the initial
4    equalized assessed value of the property divided by the
5    number of installments in which real estate taxes are
6    billed and collected within the county; provided that the
7    payments on or before December 31, 1999 to a municipal
8    treasurer shall be made only if each of the following
9    conditions are met:
10        (1) The total equalized assessed value of the
11        redevelopment project area as last determined was not
12        less than 175% of the total initial equalized assessed
13        value.
14        (2) Not more than 50% of the total equalized assessed
15        value of the redevelopment project area as last
16        determined is attributable to a piece of property
17        assigned a single real estate index number.
18        (3) The municipal clerk has certified to the county
19        clerk that the municipality has issued its obligations
20        to which there has been pledged the incremental
21        property taxes of the redevelopment project area or
22        taxes levied and collected on any or all property in
23        the municipality or the full faith and credit of the
24        municipality to pay or secure payment for all or a
25        portion of the redevelopment project costs. The
26        certification shall be filed annually no later than

 

 

10000SB0001sam005- 112 -LRB100 06371 MLM 26512 a

1        September 1 for the estimated taxes to be distributed
2        in the following year; however, for the year 1992 the
3        certification shall be made at any time on or before
4        March 31, 1992.
5        (4) The municipality has not requested that the total
6        initial equalized assessed value of real property be
7        adjusted as provided in subsection (b) of Section
8        11-74.4-9.
9        The conditions of paragraphs (1) through (4) do not
10    apply after December 31, 1999 to payments to a municipal
11    treasurer made by a county with 3,000,000 or more
12    inhabitants that has adopted an estimated billing
13    procedure for collecting taxes. If a county that has
14    adopted the estimated billing procedure makes an erroneous
15    overpayment of tax revenue to the municipal treasurer, then
16    the county may seek a refund of that overpayment. The
17    county shall send the municipal treasurer a notice of
18    liability for the overpayment on or before the mailing date
19    of the next real estate tax bill within the county. The
20    refund shall be limited to the amount of the overpayment.
21        It is the intent of this Division that after the
22    effective date of this amendatory Act of 1988 a
23    municipality's own ad valorem tax arising from levies on
24    taxable real property be included in the determination of
25    incremental revenue in the manner provided in paragraph (c)
26    of Section 11-74.4-9. If the municipality does not extend

 

 

10000SB0001sam005- 113 -LRB100 06371 MLM 26512 a

1    such a tax, it shall annually deposit in the municipality's
2    Special Tax Increment Fund an amount equal to 10% of the
3    total contributions to the fund from all other taxing
4    districts in that year. The annual 10% deposit required by
5    this paragraph shall be limited to the actual amount of
6    municipally produced incremental tax revenues available to
7    the municipality from taxpayers located in the
8    redevelopment project area in that year if: (a) the plan
9    for the area restricts the use of the property primarily to
10    industrial purposes, (b) the municipality establishing the
11    redevelopment project area is a home-rule community with a
12    1990 population of between 25,000 and 50,000, (c) the
13    municipality is wholly located within a county with a 1990
14    population of over 750,000 and (d) the redevelopment
15    project area was established by the municipality prior to
16    June 1, 1990. This payment shall be in lieu of a
17    contribution of ad valorem taxes on real property. If no
18    such payment is made, any redevelopment project area of the
19    municipality shall be dissolved.
20        If a municipality has adopted tax increment allocation
21    financing by ordinance and the County Clerk thereafter
22    certifies the "total initial equalized assessed value as
23    adjusted" of the taxable real property within such
24    redevelopment project area in the manner provided in
25    paragraph (b) of Section 11-74.4-9, each year after the
26    date of the certification of the total initial equalized

 

 

10000SB0001sam005- 114 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 115 -LRB100 06371 MLM 26512 a

1        collector to the respective affected taxing districts
2        in the manner required by law in the absence of the
3        adoption of tax increment allocation financing.
4        (2) That portion, if any, of such taxes which is
5        attributable to the increase in the current equalized
6        assessed valuation of each taxable lot, block, tract,
7        or parcel of real property in the redevelopment project
8        area, over and above the initial equalized assessed
9        value of each property existing at the time tax
10        increment financing was adopted, minus the total
11        current homestead exemptions pertaining to each piece
12        of property provided by Article 15 of the Property Tax
13        Code in the redevelopment project area, shall be
14        allocated to and when collected shall be paid to the
15        municipal Treasurer, who shall deposit said taxes into
16        a special fund called the special tax allocation fund
17        of the municipality for the purpose of paying
18        redevelopment project costs and obligations incurred
19        in the payment thereof.
20        The municipality may pledge in the ordinance the funds
21    in and to be deposited in the special tax allocation fund
22    for the payment of such costs and obligations. No part of
23    the current equalized assessed valuation of each property
24    in the redevelopment project area attributable to any
25    increase above the total initial equalized assessed value,
26    or the total initial equalized assessed value as adjusted,

 

 

10000SB0001sam005- 116 -LRB100 06371 MLM 26512 a

1    of such properties shall be used in calculating the general
2    State school aid formula, provided for in Section 18-8 of
3    the School Code, or the evidence-based funding formula,
4    provided for in Section 18-8.15 of the School Code, until
5    such time as all redevelopment project costs have been paid
6    as provided for in this Section.
7        Whenever a municipality issues bonds for the purpose of
8    financing redevelopment project costs, such municipality
9    may provide by ordinance for the appointment of a trustee,
10    which may be any trust company within the State, and for
11    the establishment of such funds or accounts to be
12    maintained by such trustee as the municipality shall deem
13    necessary to provide for the security and payment of the
14    bonds. If such municipality provides for the appointment of
15    a trustee, such trustee shall be considered the assignee of
16    any payments assigned by the municipality pursuant to such
17    ordinance and this Section. Any amounts paid to such
18    trustee as assignee shall be deposited in the funds or
19    accounts established pursuant to such trust agreement, and
20    shall be held by such trustee in trust for the benefit of
21    the holders of the bonds, and such holders shall have a
22    lien on and a security interest in such funds or accounts
23    so long as the bonds remain outstanding and unpaid. Upon
24    retirement of the bonds, the trustee shall pay over any
25    excess amounts held to the municipality for deposit in the
26    special tax allocation fund.

 

 

10000SB0001sam005- 117 -LRB100 06371 MLM 26512 a

1        When such redevelopment projects costs, including
2    without limitation all municipal obligations financing
3    redevelopment project costs incurred under this Division,
4    have been paid, all surplus funds then remaining in the
5    special tax allocation fund shall be distributed by being
6    paid by the municipal treasurer to the Department of
7    Revenue, the municipality and the county collector; first
8    to the Department of Revenue and the municipality in direct
9    proportion to the tax incremental revenue received from the
10    State and the municipality, but not to exceed the total
11    incremental revenue received from the State or the
12    municipality less any annual surplus distribution of
13    incremental revenue previously made; with any remaining
14    funds to be paid to the County Collector who shall
15    immediately thereafter pay said funds to the taxing
16    districts in the redevelopment project area in the same
17    manner and proportion as the most recent distribution by
18    the county collector to the affected districts of real
19    property taxes from real property in the redevelopment
20    project area.
21        Upon the payment of all redevelopment project costs,
22    the retirement of obligations, the distribution of any
23    excess monies pursuant to this Section, and final closing
24    of the books and records of the redevelopment project area,
25    the municipality shall adopt an ordinance dissolving the
26    special tax allocation fund for the redevelopment project

 

 

10000SB0001sam005- 118 -LRB100 06371 MLM 26512 a

1    area and terminating the designation of the redevelopment
2    project area as a redevelopment project area. Title to real
3    or personal property and public improvements acquired by or
4    for the municipality as a result of the redevelopment
5    project and plan shall vest in the municipality when
6    acquired and shall continue to be held by the municipality
7    after the redevelopment project area has been terminated.
8    Municipalities shall notify affected taxing districts
9    prior to November 1 if the redevelopment project area is to
10    be terminated by December 31 of that same year. If a
11    municipality extends estimated dates of completion of a
12    redevelopment project and retirement of obligations to
13    finance a redevelopment project, as allowed by this
14    amendatory Act of 1993, that extension shall not extend the
15    property tax increment allocation financing authorized by
16    this Section. Thereafter the rates of the taxing districts
17    shall be extended and taxes levied, collected and
18    distributed in the manner applicable in the absence of the
19    adoption of tax increment allocation financing.
20        If a municipality with a population of 1,000,000 or
21    more has adopted by ordinance tax increment allocation
22    financing for a redevelopment project area located in a
23    transit facility improvement area established pursuant to
24    Section 11-74.4-3.3, for each year after the effective date
25    of the ordinance until redevelopment project costs and all
26    municipal obligations financing redevelopment project

 

 

10000SB0001sam005- 119 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 120 -LRB100 06371 MLM 26512 a

1        increment financing was adopted, minus the total
2        current homestead exemptions pertaining to each piece
3        of property provided by Article 15 of the Property Tax
4        Code in the redevelopment project area, shall be
5        allocated to and when collected shall be paid by the
6        county collector as follows:
7                (A) First, that portion which would be payable
8            to a school district whose boundaries are
9            coterminous with such municipality in the absence
10            of the adoption of tax increment allocation
11            financing, shall be paid to such school district in
12            the manner required by law in the absence of the
13            adoption of tax increment allocation financing;
14            then
15                (B) 80% of the remaining portion shall be paid
16            to the municipal Treasurer, who shall deposit said
17            taxes into a special fund called the special tax
18            allocation fund of the municipality for the
19            purpose of paying redevelopment project costs and
20            obligations incurred in the payment thereof; and
21            then
22                (C) 20% of the remaining portion shall be paid
23            to the respective affected taxing districts, other
24            than the school district described in clause (a)
25            above, in the manner required by law in the absence
26            of the adoption of tax increment allocation

 

 

10000SB0001sam005- 121 -LRB100 06371 MLM 26512 a

1            financing.
2    Nothing in this Section shall be construed as relieving
3property in such redevelopment project areas from being
4assessed as provided in the Property Tax Code or as relieving
5owners of such property from paying a uniform rate of taxes, as
6required by Section 4 of Article IX of the Illinois
7Constitution.
8(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
9    (65 ILCS 5/11-74.6-35)
10    Sec. 11-74.6-35. Ordinance for tax increment allocation
11financing.
12    (a) A municipality, at the time a redevelopment project
13area is designated, may adopt tax increment allocation
14financing by passing an ordinance providing that the ad valorem
15taxes, if any, arising from the levies upon taxable real
16property within the redevelopment project area by taxing
17districts and tax rates determined in the manner provided in
18subsection (b) of Section 11-74.6-40 each year after the
19effective date of the ordinance until redevelopment project
20costs and all municipal obligations financing redevelopment
21project costs incurred under this Act have been paid shall be
22divided as follows:
23        (1) That portion of the taxes levied upon each taxable
24    lot, block, tract or parcel of real property that is
25    attributable to the lower of the current equalized assessed

 

 

10000SB0001sam005- 122 -LRB100 06371 MLM 26512 a

1    value or the initial equalized assessed value or the
2    updated initial equalized assessed value of each taxable
3    lot, block, tract or parcel of real property in the
4    redevelopment project area shall be allocated to and when
5    collected shall be paid by the county collector to the
6    respective affected taxing districts in the manner
7    required by law without regard to the adoption of tax
8    increment allocation financing.
9        (2) That portion, if any, of those taxes that is
10    attributable to the increase in the current equalized
11    assessed value of each taxable lot, block, tract or parcel
12    of real property in the redevelopment project area, over
13    and above the initial equalized assessed value or the
14    updated initial equalized assessed value of each property
15    in the project area, shall be allocated to and when
16    collected shall be paid by the county collector to the
17    municipal treasurer who shall deposit that portion of those
18    taxes into a special fund called the special tax allocation
19    fund of the municipality for the purpose of paying
20    redevelopment project costs and obligations incurred in
21    the payment of those costs and obligations. In any county
22    with a population of 3,000,000 or more that has adopted a
23    procedure for collecting taxes that provides for one or
24    more of the installments of the taxes to be billed and
25    collected on an estimated basis, the municipal treasurer
26    shall be paid for deposit in the special tax allocation

 

 

10000SB0001sam005- 123 -LRB100 06371 MLM 26512 a

1    fund of the municipality, from the taxes collected from
2    estimated bills issued for property in the redevelopment
3    project area, the difference between the amount actually
4    collected from each taxable lot, block, tract, or parcel of
5    real property within the redevelopment project area and an
6    amount determined by multiplying the rate at which taxes
7    were last extended against the taxable lot, block, track,
8    or parcel of real property in the manner provided in
9    subsection (b) of Section 11-74.6-40 by the initial
10    equalized assessed value or the updated initial equalized
11    assessed value of the property divided by the number of
12    installments in which real estate taxes are billed and
13    collected within the county, provided that the payments on
14    or before December 31, 1999 to a municipal treasurer shall
15    be made only if each of the following conditions are met:
16            (A) The total equalized assessed value of the
17        redevelopment project area as last determined was not
18        less than 175% of the total initial equalized assessed
19        value.
20            (B) Not more than 50% of the total equalized
21        assessed value of the redevelopment project area as
22        last determined is attributable to a piece of property
23        assigned a single real estate index number.
24            (C) The municipal clerk has certified to the county
25        clerk that the municipality has issued its obligations
26        to which there has been pledged the incremental

 

 

10000SB0001sam005- 124 -LRB100 06371 MLM 26512 a

1        property taxes of the redevelopment project area or
2        taxes levied and collected on any or all property in
3        the municipality or the full faith and credit of the
4        municipality to pay or secure payment for all or a
5        portion of the redevelopment project costs. The
6        certification shall be filed annually no later than
7        September 1 for the estimated taxes to be distributed
8        in the following year.
9    The conditions of paragraphs (A) through (C) do not apply
10after December 31, 1999 to payments to a municipal treasurer
11made by a county with 3,000,000 or more inhabitants that has
12adopted an estimated billing procedure for collecting taxes. If
13a county that has adopted the estimated billing procedure makes
14an erroneous overpayment of tax revenue to the municipal
15treasurer, then the county may seek a refund of that
16overpayment. The county shall send the municipal treasurer a
17notice of liability for the overpayment on or before the
18mailing date of the next real estate tax bill within the
19county. The refund shall be limited to the amount of the
20overpayment.
21    (b) It is the intent of this Act that a municipality's own
22ad valorem tax arising from levies on taxable real property be
23included in the determination of incremental revenue in the
24manner provided in paragraph (b) of Section 11-74.6-40.
25    (c) If a municipality has adopted tax increment allocation
26financing for a redevelopment project area by ordinance and the

 

 

10000SB0001sam005- 125 -LRB100 06371 MLM 26512 a

1county clerk thereafter certifies the total initial equalized
2assessed value or the total updated initial equalized assessed
3value of the taxable real property within such redevelopment
4project area in the manner provided in paragraph (a) or (b) of
5Section 11-74.6-40, each year after the date of the
6certification of the total initial equalized assessed value or
7the total updated initial equalized assessed value until
8redevelopment project costs and all municipal obligations
9financing redevelopment project costs have been paid, the ad
10valorem taxes, if any, arising from the levies upon the taxable
11real property in the redevelopment project area by taxing
12districts and tax rates determined in the manner provided in
13paragraph (b) of Section 11-74.6-40 shall be divided as
14follows:
15        (1) That portion of the taxes levied upon each taxable
16    lot, block, tract or parcel of real property that is
17    attributable to the lower of the current equalized assessed
18    value or the initial equalized assessed value, or the
19    updated initial equalized assessed value of each parcel if
20    the updated initial equalized assessed value of that parcel
21    has been certified in accordance with Section 11-74.6-40,
22    whichever has been most recently certified, of each taxable
23    lot, block, tract, or parcel of real property existing at
24    the time tax increment allocation financing was adopted in
25    the redevelopment project area, shall be allocated to and
26    when collected shall be paid by the county collector to the

 

 

10000SB0001sam005- 126 -LRB100 06371 MLM 26512 a

1    respective affected taxing districts in the manner
2    required by law without regard to the adoption of tax
3    increment allocation financing.
4        (2) That portion, if any, of those taxes that is
5    attributable to the increase in the current equalized
6    assessed value of each taxable lot, block, tract, or parcel
7    of real property in the redevelopment project area, over
8    and above the initial equalized assessed value of each
9    property existing at the time tax increment allocation
10    financing was adopted in the redevelopment project area, or
11    the updated initial equalized assessed value of each parcel
12    if the updated initial equalized assessed value of that
13    parcel has been certified in accordance with Section
14    11-74.6-40, shall be allocated to and when collected shall
15    be paid to the municipal treasurer, who shall deposit those
16    taxes into a special fund called the special tax allocation
17    fund of the municipality for the purpose of paying
18    redevelopment project costs and obligations incurred in
19    the payment thereof.
20    (d) The municipality may pledge in the ordinance the funds
21in and to be deposited in the special tax allocation fund for
22the payment of redevelopment project costs and obligations. No
23part of the current equalized assessed value of each property
24in the redevelopment project area attributable to any increase
25above the total initial equalized assessed value or the total
26initial updated equalized assessed value of the property, shall

 

 

10000SB0001sam005- 127 -LRB100 06371 MLM 26512 a

1be used in calculating the general General State aid formula
2School Aid Formula, provided for in Section 18-8 of the School
3Code, or the evidence-based funding formula, provided for in
4Section 18-8.15 of the School Code, until all redevelopment
5project costs have been paid as provided for in this Section.
6    Whenever a municipality issues bonds for the purpose of
7financing redevelopment project costs, that municipality may
8provide by ordinance for the appointment of a trustee, which
9may be any trust company within the State, and for the
10establishment of any funds or accounts to be maintained by that
11trustee, as the municipality deems necessary to provide for the
12security and payment of the bonds. If the municipality provides
13for the appointment of a trustee, the trustee shall be
14considered the assignee of any payments assigned by the
15municipality under that ordinance and this Section. Any amounts
16paid to the trustee as assignee shall be deposited into the
17funds or accounts established under the trust agreement, and
18shall be held by the trustee in trust for the benefit of the
19holders of the bonds. The holders of those bonds shall have a
20lien on and a security interest in those funds or accounts
21while the bonds remain outstanding and unpaid. Upon retirement
22of the bonds, the trustee shall pay over any excess amounts
23held to the municipality for deposit in the special tax
24allocation fund.
25    When the redevelopment projects costs, including without
26limitation all municipal obligations financing redevelopment

 

 

10000SB0001sam005- 128 -LRB100 06371 MLM 26512 a

1project costs incurred under this Law, have been paid, all
2surplus funds then remaining in the special tax allocation fund
3shall be distributed by being paid by the municipal treasurer
4to the municipality and the county collector; first to the
5municipality in direct proportion to the tax incremental
6revenue received from the municipality, but not to exceed the
7total incremental revenue received from the municipality,
8minus any annual surplus distribution of incremental revenue
9previously made. Any remaining funds shall be paid to the
10county collector who shall immediately distribute that payment
11to the taxing districts in the redevelopment project area in
12the same manner and proportion as the most recent distribution
13by the county collector to the affected districts of real
14property taxes from real property situated in the redevelopment
15project area.
16    Upon the payment of all redevelopment project costs,
17retirement of obligations and the distribution of any excess
18moneys under this Section, the municipality shall adopt an
19ordinance dissolving the special tax allocation fund for the
20redevelopment project area and terminating the designation of
21the redevelopment project area as a redevelopment project area.
22Thereafter the tax levies of taxing districts shall be
23extended, collected and distributed in the same manner
24applicable before the adoption of tax increment allocation
25financing. Municipality shall notify affected taxing districts
26prior to November if the redevelopment project area is to be

 

 

10000SB0001sam005- 129 -LRB100 06371 MLM 26512 a

1terminated by December 31 of that same year.
2    Nothing in this Section shall be construed as relieving
3property in a redevelopment project area from being assessed as
4provided in the Property Tax Code or as relieving owners of
5that property from paying a uniform rate of taxes, as required
6by Section 4 of Article IX of the Illinois Constitution.
7(Source: P.A. 91-474, eff. 11-1-99.)
 
8    Section 40. The Economic Development Project Area Tax
9Increment Allocation Act of 1995 is amended by changing Section
1050 as follows:
 
11    (65 ILCS 110/50)
12    Sec. 50. Special tax allocation fund.
13    (a) If a county clerk has certified the "total initial
14equalized assessed value" of the taxable real property within
15an economic development project area in the manner provided in
16Section 45, each year after the date of the certification by
17the county clerk of the "total initial equalized assessed
18value", until economic development project costs and all
19municipal obligations financing economic development project
20costs have been paid, the ad valorem taxes, if any, arising
21from the levies upon the taxable real property in the economic
22development project area by taxing districts and tax rates
23determined in the manner provided in subsection (b) of Section
2445 shall be divided as follows:

 

 

10000SB0001sam005- 130 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 131 -LRB100 06371 MLM 26512 a

1payment of economic development project costs. No part of the
2current equalized assessed valuation of each property in the
3economic development project area attributable to any increase
4above the total initial equalized assessed value of those
5properties shall be used in calculating the general State
6school aid formula under Section 18-8 of the School Code or the
7evidence-based funding formula under Section 18-8.15 of the
8School Code, until all economic development projects costs have
9been paid as provided for in this Section.
10    (c) When the economic development projects costs,
11including without limitation all municipal obligations
12financing economic development project costs incurred under
13this Act, have been paid, all surplus monies then remaining in
14the special tax allocation fund shall be distributed by being
15paid by the municipal treasurer to the county collector, who
16shall immediately pay the monies to the taxing districts having
17taxable property in the economic development project area in
18the same manner and proportion as the most recent distribution
19by the county collector to those taxing districts of real
20property taxes from real property in the economic development
21project area.
22    (d) Upon the payment of all economic development project
23costs, retirement of obligations, and distribution of any
24excess monies under this Section and not later than 23 years
25from the date of the adoption of the ordinance establishing the
26economic development project area, the municipality shall

 

 

10000SB0001sam005- 132 -LRB100 06371 MLM 26512 a

1adopt an ordinance dissolving the special tax allocation fund
2for the economic development project area and terminating the
3designation of the economic development project area as an
4economic development project area. Thereafter, the rates of the
5taxing districts shall be extended and taxes shall be levied,
6collected, and distributed in the manner applicable in the
7absence of the adoption of tax increment allocation financing.
8    (e) Nothing in this Section shall be construed as relieving
9property in the economic development project areas from being
10assessed as provided in the Property Tax Code or as relieving
11owners or lessees of that property from paying a uniform rate
12of taxes as required by Section 4 of Article IX of the Illinois
13Constitution.
14(Source: P.A. 98-463, eff. 8-16-13.)
 
15    Section 45. The School Code is amended by changing Sections
161A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20, 1F-20,
171F-62, 1H-20, 1H-70, 2-3.33, 2-3.51.5, 2-3.62, 2-3.66,
182-3.66b, 2-3.80, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a,
1910-19, 10-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20,
2013B-45, 13B-50, 13B-50.10, 13B-50.15, 14-7.02, 14-7.02b,
2114-7.03, 14-13.01, 14C-1, 14C-12, 17-1, 17-1.2, 17-1.5,
2217-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10, 18-9, 18-12, 26-16,
2327-8.1, 27A-9, 27A-11, 29-5, 34-2.3, 34-18, 34-18.30, and
2434-43.1 and by adding Sections 17-3.6 and 18-8.15 as follows:
 

 

 

10000SB0001sam005- 133 -LRB100 06371 MLM 26512 a

1    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
2    Sec. 1A-8. Powers of the Board in Assisting Districts
3Deemed in Financial Difficulties. To promote the financial
4integrity of school districts, the State Board of Education
5shall be provided the necessary powers to promote sound
6financial management and continue operation of the public
7schools.
8    (a) The State Superintendent of Education may require a
9school district, including any district subject to Article 34A
10of this Code, to share financial information relevant to a
11proper investigation of the district's financial condition and
12the delivery of appropriate State financial, technical, and
13consulting services to the district if the district (i) has
14been designated, through the State Board of Education's School
15District Financial Profile System, as on financial warning or
16financial watch status, (ii) has failed to file an annual
17financial report, annual budget, deficit reduction plan, or
18other financial information as required by law, (iii) has been
19identified, through the district's annual audit or other
20financial and management information, as in serious financial
21difficulty in the current or next school year, or (iv) is
22determined to be likely to fail to fully meet any regularly
23scheduled, payroll-period obligations when due or any debt
24service payments when due or both. In addition to financial,
25technical, and consulting services provided by the State Board
26of Education, at the request of a school district, the State

 

 

10000SB0001sam005- 134 -LRB100 06371 MLM 26512 a

1Superintendent may provide for an independent financial
2consultant to assist the district review its financial
3condition and options.
4    (b) The State Board of Education, after proper
5investigation of a district's financial condition, may certify
6that a district, including any district subject to Article 34A,
7is in financial difficulty when any of the following conditions
8occur:
9        (1) The district has issued school or teacher orders
10    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
11    of this Code.
12        (2) The district has issued tax anticipation warrants
13    or tax anticipation notes in anticipation of a second
14    year's taxes when warrants or notes in anticipation of
15    current year taxes are still outstanding, as authorized by
16    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
17    issued short-term debt against 2 future revenue sources,
18    such as, but not limited to, tax anticipation warrants and
19    general State aid or evidence-based funding Aid
20    certificates or tax anticipation warrants and revenue
21    anticipation notes.
22        (3) The district has for 2 consecutive years shown an
23    excess of expenditures and other financing uses over
24    revenues and other financing sources and beginning fund
25    balances on its annual financial report for the aggregate
26    totals of the Educational, Operations and Maintenance,

 

 

10000SB0001sam005- 135 -LRB100 06371 MLM 26512 a

1    Transportation, and Working Cash Funds.
2        (4) The district refuses to provide financial
3    information or cooperate with the State Superintendent in
4    an investigation of the district's financial condition.
5        (5) The district is likely to fail to fully meet any
6    regularly scheduled, payroll-period obligations when due
7    or any debt service payments when due or both.
8    No school district shall be certified by the State Board of
9Education to be in financial difficulty solely by reason of any
10of the above circumstances arising as a result of (i) the
11failure of the county to make any distribution of property tax
12money due the district at the time such distribution is due or
13(ii) the failure of this State to make timely payments of
14general State aid, evidence-based funding, or any of the
15mandated categoricals; or if the district clearly demonstrates
16to the satisfaction of the State Board of Education at the time
17of its determination that such condition no longer exists. If
18the State Board of Education certifies that a district in a
19city with 500,000 inhabitants or more is in financial
20difficulty, the State Board shall so notify the Governor and
21the Mayor of the city in which the district is located. The
22State Board of Education may require school districts certified
23in financial difficulty, except those districts subject to
24Article 34A, to develop, adopt and submit a financial plan
25within 45 days after certification of financial difficulty. The
26financial plan shall be developed according to guidelines

 

 

10000SB0001sam005- 136 -LRB100 06371 MLM 26512 a

1presented to the district by the State Board of Education
2within 14 days of certification. Such guidelines shall address
3the specific nature of each district's financial difficulties.
4Any proposed budget of the district shall be consistent with
5the financial plan submitted to and approved by the State Board
6of Education.
7    A district certified to be in financial difficulty, other
8than a district subject to Article 34A, shall report to the
9State Board of Education at such times and in such manner as
10the State Board may direct, concerning the district's
11compliance with each financial plan. The State Board may review
12the district's operations, obtain budgetary data and financial
13statements, require the district to produce reports, and have
14access to any other information in the possession of the
15district that it deems relevant. The State Board may issue
16recommendations or directives within its powers to the district
17to assist in compliance with the financial plan. The district
18shall produce such budgetary data, financial statements,
19reports and other information and comply with such directives.
20If the State Board of Education determines that a district has
21failed to comply with its financial plan, the State Board of
22Education may rescind approval of the plan and appoint a
23Financial Oversight Panel for the district as provided in
24Section 1B-4. This action shall be taken only after the
25district has been given notice and an opportunity to appear
26before the State Board of Education to discuss its failure to

 

 

10000SB0001sam005- 137 -LRB100 06371 MLM 26512 a

1comply with its financial plan.
2    No bonds, notes, teachers orders, tax anticipation
3warrants or other evidences of indebtedness shall be issued or
4sold by a school district or be legally binding upon or
5enforceable against a local board of education of a district
6certified to be in financial difficulty unless and until the
7financial plan required under this Section has been approved by
8the State Board of Education.
9    Any financial profile compiled and distributed by the State
10Board of Education in Fiscal Year 2009 or any fiscal year
11thereafter shall incorporate such adjustments as may be needed
12in the profile scores to reflect the financial effects of the
13inability or refusal of the State of Illinois to make timely
14disbursements of any general State aid, evidence-based
15funding, or mandated categorical aid payments due school
16districts or to fully reimburse school districts for mandated
17categorical programs pursuant to reimbursement formulas
18provided in this School Code.
19(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
2097-429, eff. 8-16-11.)
 
21    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
22    Sec. 1B-5. When a petition for emergency financial
23assistance for a school district is allowed by the State Board
24under Section 1B-4, the State Superintendent shall within 10
25days thereafter appoint 3 members to serve at the State

 

 

10000SB0001sam005- 138 -LRB100 06371 MLM 26512 a

1Superintendent's pleasure on a Financial Oversight Panel for
2the district. The State Superintendent shall designate one of
3the members of the Panel to serve as its Chairman. In the event
4of vacancy or resignation the State Superintendent shall
5appoint a successor within 10 days of receiving notice thereof.
6    Members of the Panel shall be selected primarily on the
7basis of their experience and education in financial
8management, with consideration given to persons knowledgeable
9in education finance. A member of the Panel may not be a board
10member or employee of the district for which the Panel is
11constituted, nor may a member have a direct financial interest
12in that district.
13    Panel members shall serve without compensation, but may be
14reimbursed for travel and other necessary expenses incurred in
15the performance of their official duties by the State Board.
16The amount reimbursed Panel members for their expenses shall be
17charged to the school district as part of any emergency
18financial assistance and incorporated as a part of the terms
19and conditions for repayment of such assistance or shall be
20deducted from the district's general State aid or
21evidence-based funding as provided in Section 1B-8.
22    The first meeting of the Panel shall be held at the call of
23the Chairman. The Panel may elect such other officers as it
24deems appropriate. The Panel shall prescribe the times and
25places for its meetings and the manner in which regular and
26special meetings may be called, and shall comply with the Open

 

 

10000SB0001sam005- 139 -LRB100 06371 MLM 26512 a

1Meetings Act.
2    Two members of the Panel shall constitute a quorum, and the
3affirmative vote of 2 members shall be necessary for any
4decision or action to be taken by the Panel.
5    The Panel and the State Superintendent shall cooperate with
6each other in the exercise of their respective powers. The
7Panel shall report not later than September 1 annually to the
8State Board and the State Superintendent with respect to its
9activities and the condition of the school district for the
10previous fiscal year.
11    Any Financial Oversight Panel established under this
12Article shall remain in existence for not less than 3 years nor
13more than 10 years from the date the State Board grants the
14petition under Section 1B-4. If after 3 years the school
15district has repaid all of its obligations resulting from
16emergency State financial assistance provided under this
17Article and has improved its financial situation, the board of
18education may, not more frequently than once in any 12 month
19period, petition the State Board to dissolve the Financial
20Oversight Panel, terminate the oversight responsibility, and
21remove the district's certification under Section 1A-8 as a
22district in financial difficulty. In acting on such a petition
23the State Board shall give additional weight to the
24recommendations of the State Superintendent and the Financial
25Oversight Panel.
26(Source: P.A. 88-618, eff. 9-9-94.)
 

 

 

10000SB0001sam005- 140 -LRB100 06371 MLM 26512 a

1    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
2    Sec. 1B-6. General powers. The purpose of the Financial
3Oversight Panel shall be to exercise financial control over the
4board of education, and, when approved by the State Board and
5the State Superintendent of Education, to furnish financial
6assistance so that the board can provide public education
7within the board's jurisdiction while permitting the board to
8meet its obligations to its creditors and the holders of its
9notes and bonds. Except as expressly limited by this Article,
10the Panel shall have all powers necessary to meet its
11responsibilities and to carry out its purposes and the purposes
12of this Article, including, but not limited to, the following
13powers:
14    (a) to sue and be sued;
15    (b) to provide for its organization and internal
16management;
17    (c) to appoint a Financial Administrator to serve as the
18chief executive officer of the Panel. The Financial
19Administrator may be an individual, partnership, corporation,
20including an accounting firm, or other entity determined by the
21Panel to be qualified to serve; and to appoint other officers,
22agents, and employees of the Panel, define their duties and
23qualifications and fix their compensation and employee
24benefits;
25    (d) to approve the local board of education appointments to

 

 

10000SB0001sam005- 141 -LRB100 06371 MLM 26512 a

1the positions of treasurer in a Class I county school unit and
2in each school district which forms a part of a Class II county
3school unit but which no longer is subject to the jurisdiction
4and authority of a township treasurer or trustees of schools of
5a township because the district has withdrawn from the
6jurisdiction and authority of the township treasurer and the
7trustees of schools of the township or because those offices
8have been abolished as provided in subsection (b) or (c) of
9Section 5-1, and chief school business official, if such
10official is not the superintendent of the district. Either the
11board or the Panel may remove such treasurer or chief school
12business official;
13    (e) to approve any and all bonds, notes, teachers orders,
14tax anticipation warrants, and other evidences of indebtedness
15prior to issuance or sale by the school district; and
16notwithstanding any other provision of The School Code, as now
17or hereafter amended, no bonds, notes, teachers orders, tax
18anticipation warrants or other evidences of indebtedness shall
19be issued or sold by the school district or be legally binding
20upon or enforceable against the local board of education unless
21and until the approval of the Panel has been received;
22    (f) to approve all property tax levies of the school
23district and require adjustments thereto as the Panel deems
24necessary or advisable;
25    (g) to require and approve a school district financial
26plan;

 

 

10000SB0001sam005- 142 -LRB100 06371 MLM 26512 a

1    (h) to approve and require revisions of the school district
2budget;
3    (i) to approve all contracts and other obligations as the
4Panel deems necessary and appropriate;
5    (j) to authorize emergency State financial assistance,
6including requirements regarding the terms and conditions of
7repayment of such assistance, and to require the board of
8education to levy a separate local property tax, subject to the
9limitations of Section 1B-8, sufficient to repay such
10assistance consistent with the terms and conditions of
11repayment and the district's approved financial plan and
12budget;
13    (k) to request the regional superintendent to make
14appointments to fill all vacancies on the local school board as
15provided in Section 10-10;
16    (l) to recommend dissolution or reorganization of the
17school district to the General Assembly if in the Panel's
18judgment the circumstances so require;
19    (m) to direct a phased reduction in the oversight
20responsibilities of the Financial Administrator and of the
21Panel as the circumstances permit;
22    (n) to determine the amount of emergency State financial
23assistance to be made available to the school district, and to
24establish an operating budget for the Panel to be supported by
25funds available from such assistance, with the assistance and
26the budget required to be approved by the State Superintendent;

 

 

10000SB0001sam005- 143 -LRB100 06371 MLM 26512 a

1    (o) to procure insurance against any loss in such amounts
2and from such insurers as it deems necessary;
3    (p) to engage the services of consultants for rendering
4professional and technical assistance and advice on matters
5within the Panel's power;
6    (q) to contract for and to accept any gifts, grants or
7loans of funds or property or financial or other aid in any
8form from the federal government, State government, unit of
9local government, school district or any agency or
10instrumentality thereof, or from any other private or public
11source, and to comply with the terms and conditions thereof;
12    (r) to pay the expenses of its operations based on the
13Panel's budget as approved by the State Superintendent from
14emergency financial assistance funds available to the district
15or from deductions from the district's general State aid or
16evidence-based funding;
17    (s) to do any and all things necessary or convenient to
18carry out its purposes and exercise the powers given to the
19Panel by this Article; and
20    (t) to recommend the creation of a school finance authority
21pursuant to Article 1F of this Code.
22(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
23    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
24    Sec. 1B-7. Financial Administrator; Powers and Duties. The
25Financial Administrator appointed by the Financial Oversight

 

 

10000SB0001sam005- 144 -LRB100 06371 MLM 26512 a

1Panel shall serve as the Panel's chief executive officer. The
2Financial Administrator shall exercise the powers and duties
3required by the Panel, including but not limited to the
4following:
5    (a) to provide guidance and recommendations to the local
6board and officials of the school district in developing the
7district's financial plan and budget prior to board action;
8    (b) to direct the local board to reorganize its financial
9accounts, budgetary systems, and internal accounting and
10financial controls, in whatever manner the Panel deems
11appropriate to achieve greater financial responsibility and to
12reduce financial inefficiency, and to provide technical
13assistance to aid the district in accomplishing the
14reorganization;
15    (c) to make recommendations to the Financial Oversight
16Panel concerning the school district's financial plan and
17budget, and all other matters within the scope of the Panel's
18authority;
19    (d) to prepare and recommend to the Panel a proposal for
20emergency State financial assistance for the district,
21including recommended terms and conditions of repayment, and an
22operations budget for the Panel to be funded from the emergency
23assistance or from deductions from the district's general State
24aid or evidence-based funding;
25    (e) to require the local board to prepare and submit
26preliminary staffing and budgetary analyses annually prior to

 

 

10000SB0001sam005- 145 -LRB100 06371 MLM 26512 a

1February 1 in such manner and form as the Financial
2Administrator shall prescribe; and
3    (f) subject to the direction of the Panel, to do all other
4things necessary or convenient to carry out its purposes and
5exercise the powers given to the Panel under this Article.
6(Source: P.A. 88-618, eff. 9-9-94.)
 
7    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
8    Sec. 1B-8. There is created in the State Treasury a special
9fund to be known as the School District Emergency Financial
10Assistance Fund (the "Fund"). The School District Emergency
11Financial Assistance Fund shall consist of appropriations,
12loan repayments, grants from the federal government, and
13donations from any public or private source. Moneys in the Fund
14may be appropriated only to the Illinois Finance Authority and
15the State Board for those purposes authorized under this
16Article and Articles 1F and 1H of this Code. The appropriation
17may be allocated and expended by the State Board for
18contractual services to provide technical assistance or
19consultation to school districts to assess their financial
20condition and to Financial Oversight Panels that petition for
21emergency financial assistance grants. The Illinois Finance
22Authority may provide loans to school districts which are the
23subject of an approved petition for emergency financial
24assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
25Neither the State Board of Education nor the Illinois Finance

 

 

10000SB0001sam005- 146 -LRB100 06371 MLM 26512 a

1Authority may collect any fees for providing these services.
2    From the amount allocated to each such school district
3under this Article the State Board shall identify a sum
4sufficient to cover all approved costs of the Financial
5Oversight Panel established for the respective school
6district. If the State Board and State Superintendent of
7Education have not approved emergency financial assistance in
8conjunction with the appointment of a Financial Oversight
9Panel, the Panel's approved costs shall be paid from deductions
10from the district's general State aid or evidence-based
11funding.
12    The Financial Oversight Panel may prepare and file with the
13State Superintendent a proposal for emergency financial
14assistance for the school district and for its operations
15budget. No expenditures from the Fund shall be authorized by
16the State Superintendent until he or she has approved the
17request of the Panel, either as submitted or in such lesser
18amount determined by the State Superintendent.
19    The maximum amount of an emergency financial assistance
20loan which may be allocated to any school district under this
21Article, including moneys necessary for the operations of the
22Panel, shall not exceed $4,000 times the number of pupils
23enrolled in the school district during the school year ending
24June 30 prior to the date of approval by the State Board of the
25petition for emergency financial assistance, as certified to
26the local board and the Panel by the State Superintendent. An

 

 

10000SB0001sam005- 147 -LRB100 06371 MLM 26512 a

1emergency financial assistance grant shall not exceed $1,000
2times the number of such pupils. A district may receive both a
3loan and a grant.
4    The payment of an emergency State financial assistance
5grant or loan shall be subject to appropriation by the General
6Assembly. Payment of the emergency State financial assistance
7loan is subject to the applicable provisions of the Illinois
8Finance Authority Act. Emergency State financial assistance
9allocated and paid to a school district under this Article may
10be applied to any fund or funds from which the local board of
11education of that district is authorized to make expenditures
12by law.
13    Any emergency financial assistance grant proposed by the
14Financial Oversight Panel and approved by the State
15Superintendent may be paid in its entirety during the initial
16year of the Panel's existence or spread in equal or declining
17amounts over a period of years not to exceed the period of the
18Panel's existence. An emergency financial assistance loan
19proposed by the Financial Oversight Panel and approved by the
20Illinois Finance Authority may be paid in its entirety during
21the initial year of the Panel's existence or spread in equal or
22declining amounts over a period of years not to exceed the
23period of the Panel's existence. All loans made by the Illinois
24Finance Authority for a school district shall be required to be
25repaid, with simple interest over the term of the loan at a
26rate equal to 50% of the one-year Constant Maturity Treasury

 

 

10000SB0001sam005- 148 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 149 -LRB100 06371 MLM 26512 a

1required. The board of any school district with a tax rate for
2educational purposes for the prior year of less than 120% of
3the maximum rate for educational purposes authorized by Section
417-2 shall provide for a separate tax levy for emergency
5financial assistance repayment purposes. Such tax levy shall
6not be subject to referendum approval. The amount of the levy
7shall be equal to the amount necessary to meet the annual
8repayment obligations of the district as established by the
9Panel, or 20% of the amount levied for educational purposes for
10the prior year, whichever is less. However, no district shall
11be required to levy the tax if the district's operating tax
12rate as determined under Section 18-8, or 18-8.05, or 18-8.15
13exceeds 200% of the district's tax rate for educational
14purposes for the prior year.
15(Source: P.A. 97-429, eff. 8-16-11.)
 
16    (105 ILCS 5/1C-1)
17    Sec. 1C-1. Purpose. The purpose of this Article is to
18permit greater flexibility and efficiency in the distribution
19and use of certain State funds available to local education
20agencies for the improvement of the quality of educational
21services pursuant to locally established priorities.
22    Through fiscal year 2017, this This Article does not apply
23to school districts having a population in excess of 500,000
24inhabitants.
25(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;

 

 

10000SB0001sam005- 150 -LRB100 06371 MLM 26512 a

189-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
2    (105 ILCS 5/1C-2)
3    Sec. 1C-2. Block grants.
4    (a) For fiscal year 1999, and each fiscal year thereafter,
5the State Board of Education shall award to school districts
6block grants as described in subsection (c). The State Board of
7Education may adopt rules and regulations necessary to
8implement this Section. In accordance with Section 2-3.32, all
9state block grants are subject to an audit. Therefore, block
10grant receipts and block grant expenditures shall be recorded
11to the appropriate fund code.
12    (b) (Blank).
13    (c) An Early Childhood Education Block Grant shall be
14created by combining the following programs: Preschool
15Education, Parental Training and Prevention Initiative. These
16funds shall be distributed to school districts and other
17entities on a competitive basis, except that the State Board of
18Education shall award to a school district having a population
19exceeding 500,000 inhabitants 37% of the funds in each fiscal
20year. Not less than 14% of the Early Childhood Education Block
21Grant allocation of funds shall be used to fund programs for
22children ages 0-3. Beginning in Fiscal Year 2016, at least 25%
23of any additional Early Childhood Education Block Grant funding
24over and above the previous fiscal year's allocation shall be
25used to fund programs for children ages 0-3. Once the

 

 

10000SB0001sam005- 151 -LRB100 06371 MLM 26512 a

1percentage of Early Childhood Education Block Grant funding
2allocated to programs for children ages 0-3 reaches 20% of the
3overall Early Childhood Education Block Grant allocation for a
4full fiscal year, thereafter in subsequent fiscal years the
5percentage of Early Childhood Education Block Grant funding
6allocated to programs for children ages 0-3 each fiscal year
7shall remain at least 20% of the overall Early Childhood
8Education Block Grant allocation. However, if, in a given
9fiscal year, the amount appropriated for the Early Childhood
10Education Block Grant is insufficient to increase the
11percentage of the grant to fund programs for children ages 0-3
12without reducing the amount of the grant for existing providers
13of preschool education programs, then the percentage of the
14grant to fund programs for children ages 0-3 may be held steady
15instead of increased.
16(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)
 
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
25State funding for the programs described in subsections (b) and

 

 

10000SB0001sam005- 152 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 153 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 154 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 155 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 156 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 157 -LRB100 06371 MLM 26512 a

1this subsection (h) by a district shall in any way relieve the
2district from or affect any requirements that otherwise would
3apply with respect to the block grant as provided in this
4Section, including any accounting of funds by source, reporting
5expenditures by original source and purpose, reporting
6requirements, or requirements of provision of services.
7(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
897-813, eff. 7-13-12.)
 
9    (105 ILCS 5/1E-20)
10    (This Section scheduled to be repealed in accordance with
11105 ILCS 5/1E-165)
12    Sec. 1E-20. Members of Authority; meetings.
13    (a) When a petition for a School Finance Authority is
14allowed by the State Board under Section 1E-15 of this Code,
15the State Superintendent shall within 10 days thereafter
16appoint 5 members to serve on a School Finance Authority for
17the district. Of the initial members, 2 shall be appointed to
18serve a term of 2 years and 3 shall be appointed to serve a term
19of 3 years. Thereafter, each member shall serve for a term of 3
20years and until his or her successor has been appointed. The
21State Superintendent shall designate one of the members of the
22Authority to serve as its Chairperson. In the event of vacancy
23or resignation, the State Superintendent shall, within 10 days
24after receiving notice, appoint a successor to serve out that
25member's term. The State Superintendent may remove a member for

 

 

10000SB0001sam005- 158 -LRB100 06371 MLM 26512 a

1incompetence, malfeasance, neglect of duty, or other just
2cause.
3    Members of the Authority shall be selected primarily on the
4basis of their experience and education in financial
5management, with consideration given to persons knowledgeable
6in education finance. Two members of the Authority shall be
7residents of the school district that the Authority serves. A
8member of the Authority may not be a member of the district's
9school board or an employee of the district nor may a member
10have a direct financial interest in the district.
11    Authority members shall serve without compensation, but
12may be reimbursed by the State Board for travel and other
13necessary expenses incurred in the performance of their
14official duties. Unless paid from bonds issued under Section
151E-65 of this Code, the amount reimbursed members for their
16expenses shall be charged to the school district as part of any
17emergency financial assistance and incorporated as a part of
18the terms and conditions for repayment of the assistance or
19shall be deducted 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

 

 

10000SB0001sam005- 159 -LRB100 06371 MLM 26512 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. 92-547, eff. 6-13-02.)
 
8    (105 ILCS 5/1F-20)
9(This Section scheduled to be repealed in accordance with 105
10ILCS 5/1F-165)
11    Sec. 1F-20. Members of Authority; meetings.
12    (a) Upon establishment of a School Finance Authority under
13Section 1F-15 of this Code, the State Superintendent shall
14within 15 days thereafter appoint 5 members to serve on a
15School Finance Authority for the district. Of the initial
16members, 2 shall be appointed to serve a term of 2 years and 3
17shall be appointed to serve a term of 3 years. Thereafter, each
18member shall serve for a term of 3 years and until his or her
19successor has been appointed. The State Superintendent shall
20designate one of the members of the Authority to serve as its
21Chairperson. In the event of vacancy or resignation, the State
22Superintendent shall, within 10 days after receiving notice,
23appoint a successor to serve out that member's term. The State
24Superintendent may remove a member for incompetence,
25malfeasance, neglect of duty, or other just cause.

 

 

10000SB0001sam005- 160 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 161 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 162 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 163 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 164 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 165 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 166 -LRB100 06371 MLM 26512 a

1of any emergency financial assistance and incorporated as a
2part of the terms and conditions for repayment of the
3assistance or shall be deducted from the district's general
4State aid or evidence-based funding as provided in Section
51H-65 of this Code.
6    (d) With the exception of the chairperson, who shall be
7designated as provided in subsection (a) of this Section, the
8Panel may elect such officers as it deems appropriate.
9    (e) The first meeting of the Panel shall be held at the
10call of the Chairperson. The Panel shall prescribe the times
11and places for its meetings and the manner in which regular and
12special meetings may be called and shall comply with the Open
13Meetings Act. The Panel shall also comply with the Freedom of
14Information Act.
15    (f) Three members of the Panel shall constitute a quorum. A
16majority of members present is required to pass a measure.
17(Source: P.A. 97-429, eff. 8-16-11.)
 
18    (105 ILCS 5/1H-70)
19    Sec. 1H-70. Tax anticipation warrants, tax anticipation
20notes, revenue anticipation certificates or notes, general
21State aid or evidence-based funding anticipation certificates,
22and lines of credit. With the approval of the State
23Superintendent and provided that the district is unable to
24secure short-term financing after 3 attempts, a Panel shall
25have the same power as a district to do the following:

 

 

10000SB0001sam005- 167 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 168 -LRB100 06371 MLM 26512 a

1year from the final date for filing of a claim for
2evidence-based funding if the claim has been found to be
3incorrect and to adjust subsequent claims accordingly, and to
4recompute and adjust any such claims within 6 years from the
5final date for filing when there has been an adverse court or
6administrative agency decision on the merits affecting the tax
7revenues of the school district. However, no such adjustment
8shall be made regarding equalized assessed valuation unless the
9district's equalized assessed valuation is changed by greater
10than $250,000 or 2%. Any adjustments for claims recomputed for
11the 2016-2017 school year and prior school years shall be
12applied to the apportionment of evidence-based funding in
13Section 18-8.15 of this Code beginning in the 2017-2018 school
14year and thereafter. However, the recomputation of a claim for
15evidence-based funding for a school district shall not require
16the recomputation of claims for all districts, and the State
17Board of Education shall only make recomputations of
18evidence-based funding for those districts where an adjustment
19is required.
20    Except in the case of an adverse court or administrative
21agency decision, no recomputation of a State aid claim shall be
22made pursuant to this Section as a result of a reduction in the
23assessed valuation of a school district from the assessed
24valuation of the district reported to the State Board of
25Education by the Department of Revenue under Section 18-8.05 or
2618-8.15 of this Code unless the requirements of Section 16-15

 

 

10000SB0001sam005- 169 -LRB100 06371 MLM 26512 a

1of the Property Tax Code and Section 2-3.84 of this Code are
2complied with in all respects.
3    This paragraph applies to all requests for recomputation of
4a general State aid or evidence-based funding claim received
5after June 30, 2003. In recomputing a general State aid or
6evidence-based funding claim that was originally calculated
7using an extension limitation equalized assessed valuation
8under paragraph (3) of subsection (G) of Section 18-8.05 of
9this Code or Section 18-8.15 of this Code, a qualifying
10reduction in equalized assessed valuation shall be deducted
11from the extension limitation equalized assessed valuation
12that was used in calculating the original claim.
13    From the total amount of general State aid or
14evidence-based funding to be provided to districts,
15adjustments as a result of recomputation under this Section
16together with adjustments under Section 2-3.84 must not exceed
17$25 million, in the aggregate for all districts under both
18Sections combined, of the general State aid or evidence-based
19funding appropriation in any fiscal year; if necessary, amounts
20shall be prorated among districts. If it is necessary to
21prorate claims under this paragraph, then that portion of each
22prorated claim that is approved but not paid in the current
23fiscal year may be resubmitted as a valid claim in the
24following fiscal year.
25(Source: P.A. 93-845, eff. 7-30-04.)
 

 

 

10000SB0001sam005- 170 -LRB100 06371 MLM 26512 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
26for the School Safety and Educational Improvement Block Grant

 

 

10000SB0001sam005- 171 -LRB100 06371 MLM 26512 a

1Program shall be distributed to State-recognized, non-public
2schools based on the average daily attendance figure for the
3previous school year provided to the State Board of Education.
4The State Board of Education shall develop an application that
5requires State-recognized, non-public schools to submit
6average daily attendance figures. A State-recognized,
7non-public school must submit the application and average daily
8attendance figure prior to receiving funds under this Section.
9The State Board of Education shall promulgate rules and
10regulations necessary for the implementation of this program.
11    (2) Distribution of moneys to school districts and
12State-recognized, non-public schools shall be made in 2
13semi-annual installments, one payment on or before October 30,
14and one payment prior to April 30, of each fiscal year.
15    (3) Grants under the School Safety and Educational
16Improvement Block Grant Program shall be awarded provided there
17is an appropriation for the program, and funding levels for
18each district shall be prorated according to the amount of the
19appropriation.
20    (4) The provisions of this Section are in the public
21interest, are for the public benefit, and serve secular public
22purposes.
23(Source: P.A. 98-972, eff. 8-15-14.)
 
24    (105 ILCS 5/2-3.62)  (from Ch. 122, par. 2-3.62)
25    Sec. 2-3.62. Educational service centers.

 

 

10000SB0001sam005- 172 -LRB100 06371 MLM 26512 a

1    (a) A regional network of educational service centers shall
2be established by the State Board of Education to coordinate
3and combine existing services in a manner which is practical
4and efficient and to provide new services to schools as
5provided in this Section. Services to be made available by such
6centers shall include the planning, implementation and
7evaluation of:
8        (1) (blank);
9        (2) computer technology education;
10        (3) mathematics, science and reading resources for
11    teachers including continuing education, inservice
12    training and staff development.
13    The centers may provide training, technical assistance,
14coordination and planning in other program areas such as school
15improvement, school accountability, financial planning,
16consultation, and services, career guidance, early childhood
17education, alcohol/drug education and prevention, family life -
18 sex education, electronic transmission of data from school
19districts to the State, alternative education and regional
20special education, and telecommunications systems that provide
21distance learning. Such telecommunications systems may be
22obtained through the Department of Central Management Services
23pursuant to Section 405-270 of the Department of Central
24Management Services Law (20 ILCS 405/405-270). The programs and
25services of educational service centers may be offered to
26private school teachers and private school students within each

 

 

10000SB0001sam005- 173 -LRB100 06371 MLM 26512 a

1service center area provided public schools have already been
2afforded adequate access to such programs and services.
3    Upon the abolition of the office, removal from office,
4disqualification for office, resignation from office, or
5expiration of the current term of office of the regional
6superintendent of schools, whichever is earlier, the chief
7administrative officer of the centers serving that portion of a
8Class II county school unit outside of a city of 500,000 or
9more inhabitants shall have and exercise, in and with respect
10to each educational service region having a population of
112,000,000 or more inhabitants and in and with respect to each
12school district located in any such educational service region,
13all of the rights, powers, duties, and responsibilities
14theretofore vested by law in and exercised and performed by the
15regional superintendent of schools for that area under the
16provisions of this Code or any other laws of this State.
17    The State Board of Education shall promulgate rules and
18regulations necessary to implement this Section. The rules
19shall include detailed standards which delineate the scope and
20specific content of programs to be provided by each Educational
21Service Center, as well as the specific planning,
22implementation and evaluation services to be provided by each
23Center relative to its programs. The Board shall also provide
24the standards by which it will evaluate the programs provided
25by each Center.
26    (b) Centers serving Class 1 county school units shall be

 

 

10000SB0001sam005- 174 -LRB100 06371 MLM 26512 a

1governed by an 11-member board, 3 members of which shall be
2public school teachers nominated by the local bargaining
3representatives to the appropriate regional superintendent for
4appointment and no more than 3 members of which shall be from
5each of the following categories, including but not limited to
6superintendents, regional superintendents, school board
7members and a representative of an institution of higher
8education. The members of the board shall be appointed by the
9regional superintendents whose school districts are served by
10the educational service center. The composition of the board
11will reflect the revisions of this amendatory Act of 1989 as
12the terms of office of current members expire.
13    (c) The centers shall be of sufficient size and number to
14assure delivery of services to all local school districts in
15the State.
16    (d) From monies appropriated for this program the State
17Board of Education shall provide grants paid from the Personal
18Property Tax Replacement Fund to qualifying Educational
19Service Centers applying for such grants in accordance with
20rules and regulations promulgated by the State Board of
21Education to implement this Section.
22    Notwithstanding anything to the contrary contained in this
23Section, the State Board of Education shall award to a school
24district having a population exceeding 500,000 inhabitants
2514.9% of the funds appropriated by the General Assembly for any
26fiscal year for purposes of payment of claims under this

 

 

10000SB0001sam005- 175 -LRB100 06371 MLM 26512 a

1Section.
2    (e) The governing authority of each of the 18 regional
3educational service centers shall appoint a family life - sex
4education advisory board consisting of 2 parents, 2 teachers, 2
5school administrators, 2 school board members, 2 health care
6professionals, one library system representative, and the
7director of the regional educational service center who shall
8serve as chairperson of the advisory board so appointed.
9Members of the family life - sex education advisory boards
10shall serve without compensation. Each of the advisory boards
11appointed pursuant to this subsection shall develop a plan for
12regional teacher-parent family life - sex education training
13sessions and shall file a written report of such plan with the
14governing board of their regional educational service center.
15The directors of each of the regional educational service
16centers shall thereupon meet, review each of the reports
17submitted by the advisory boards and combine those reports into
18a single written report which they shall file with the Citizens
19Council on School Problems prior to the end of the regular
20school term of the 1987-1988 school year.
21    (f) The 14 educational service centers serving Class I
22county school units shall be disbanded on the first Monday of
23August, 1995, and their statutory responsibilities and
24programs shall be assumed by the regional offices of education,
25subject to rules and regulations developed by the State Board
26of Education. The regional superintendents of schools elected

 

 

10000SB0001sam005- 176 -LRB100 06371 MLM 26512 a

1by the voters residing in all Class I counties shall serve as
2the chief administrators for these programs and services.
3(Source: P.A. 98-24, eff. 6-19-13; 98-647, eff. 6-13-14; 99-30,
4eff. 7-10-15.)
 
5    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
6    Sec. 2-3.66. Truants' alternative and optional education
7programs. To establish projects to offer modified
8instructional programs or other services designed to prevent
9students from dropping out of school, including programs
10pursuant to Section 2-3.41, and to serve as a part time or full
11time option in lieu of regular school attendance and to award
12grants to local school districts, educational service regions
13or community college districts from appropriated funds to
14assist districts in establishing such projects. The education
15agency may operate its own program or enter into a contract
16with another not-for-profit entity to implement the program.
17The projects shall allow dropouts, up to and including age 21,
18potential dropouts, including truants, uninvolved, unmotivated
19and disaffected students, as defined by State Board of
20Education rules and regulations, to enroll, as an alternative
21to regular school attendance, in an optional education program
22which may be established by school board policy and is in
23conformance with rules adopted by the State Board of Education.
24Truants' Alternative and Optional Education programs funded
25pursuant to this Section shall be planned by a student, the

 

 

10000SB0001sam005- 177 -LRB100 06371 MLM 26512 a

1student's parents or legal guardians, unless the student is 18
2years or older, and school officials and shall culminate in an
3individualized optional education plan. Such plan shall focus
4on academic or vocational skills, or both, and may include, but
5not be limited to, evening school, summer school, community
6college courses, adult education, preparation courses for high
7school equivalency testing, vocational training, work
8experience, programs to enhance self concept and parenting
9courses. School districts which are awarded grants pursuant to
10this Section shall be authorized to provide day care services
11to children of students who are eligible and desire to enroll
12in programs established and funded under this Section, but only
13if and to the extent that such day care is necessary to enable
14those eligible students to attend and participate in the
15programs and courses which are conducted pursuant to this
16Section. School districts and regional offices of education may
17claim general State aid under Section 18-8.05 or evidence-based
18funding under Section 18-8.15 for students enrolled in truants'
19alternative and optional education programs, provided that
20such students are receiving services that are supplemental to a
21program leading to a high school diploma and are otherwise
22eligible to be claimed for general State aid under Section
2318-8.05 or evidence-based funding under Section 18-8.15, as
24applicable.
25    Notwithstanding anything to the contrary contained in this
26Section, the State Board of Education shall award to a school

 

 

10000SB0001sam005- 178 -LRB100 06371 MLM 26512 a

1district having a population exceeding 500,000 inhabitants
226.8% of the funds appropriated by the General Assembly for any
3fiscal year for purposes of payment of claims under this
4Section.
5(Source: P.A. 98-718, eff. 1-1-15.)
 
6    (105 ILCS 5/2-3.66b)
7    Sec. 2-3.66b. IHOPE Program.
8    (a) There is established the Illinois Hope and Opportunity
9Pathways through Education (IHOPE) Program. The State Board of
10Education shall implement and administer the IHOPE Program. The
11goal of the IHOPE Program is to develop a comprehensive system
12in this State to re-enroll significant numbers of high school
13dropouts in programs that will enable them to earn their high
14school diploma.
15    (b) The IHOPE Program shall award grants, subject to
16appropriation for this purpose, to educational service regions
17and a school district organized under Article 34 of this Code
18from appropriated funds to assist in establishing
19instructional programs and other services designed to
20re-enroll high school dropouts. From any funds appropriated for
21the IHOPE Program, the State Board of Education may use up to
225% for administrative costs, including the performance of a
23program evaluation and the hiring of staff to implement and
24administer the program.
25    The IHOPE Program shall provide incentive grant funds for

 

 

10000SB0001sam005- 179 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 180 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 181 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 182 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 183 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 184 -LRB100 06371 MLM 26512 a

1of this Code, the planning and the conditions upon which an
2IHOPE Plan would be approved by State Board, and other rules to
3develop the IHOPE Program.
4(Source: P.A. 96-106, eff. 7-30-09.)
 
5    (105 ILCS 5/2-3.80)  (from Ch. 122, par. 2-3.80)
6    Sec. 2-3.80. (a) The General Assembly recognizes that
7agriculture is the most basic and singularly important industry
8in the State, that agriculture is of central importance to the
9welfare and economic stability of the State, and that the
10maintenance of this vital industry requires a continued source
11of trained and qualified individuals for employment in
12agriculture and agribusiness. The General Assembly hereby
13declares that it is in the best interests of the people of the
14State of Illinois that a comprehensive education program in
15agriculture be created and maintained by the State's public
16school system in order to ensure an adequate supply of trained
17and skilled individuals and to ensure appropriate
18representation of racial and ethnic groups in all phases of the
19industry. It is the intent of the General Assembly that a State
20program for agricultural education shall be a part of the
21curriculum of the public school system K through adult, and
22made readily available to all school districts which may, at
23their option, include programs in education in agriculture as a
24part of the curriculum of that district.
25    (b) The State Board of Education shall adopt such rules and

 

 

10000SB0001sam005- 185 -LRB100 06371 MLM 26512 a

1regulations as are necessary to implement the provisions of
2this Section. The rules and regulations shall not create any
3new State mandates on school districts as a condition of
4receiving federal, State, and local funds by those entities. It
5is in the intent of the General Assembly that, although this
6Section does not create any new mandates, school districts are
7strongly advised to follow the guidelines set forth in this
8Section.
9    (c) The State Superintendent of Education shall assume
10responsibility for the administration of the State program
11adopted under this Section throughout the public school system
12as well as the articulation of the State program to the
13requirements and mandates of federally assisted education.
14There is currently within the State Board of Education an
15agricultural education unit to assist school districts in the
16establishment and maintenance of educational programs pursuant
17to the provisions of this Section. The staffing of the unit
18shall at all times be comprised of an appropriate number of
19full-time employees who shall serve as program consultants in
20agricultural education and shall be available to provide
21assistance to school districts. At least one consultant shall
22be responsible for the coordination of the State program, as
23Head Consultant. At least one consultant shall be responsible
24for the coordination of the activities of student and
25agricultural organizations and associations.
26    (d) A committee of 13 agriculturalists representative of

 

 

10000SB0001sam005- 186 -LRB100 06371 MLM 26512 a

1the various and diverse areas of the agricultural industry in
2Illinois shall be established to at least develop a curriculum
3and overview the implementation of the Build Illinois through
4Quality Agricultural Education plans of the Illinois
5Leadership Council for Agricultural Education and to advise the
6State Board of Education on vocational agricultural education.
7The Committee shall be composed of the following: (6)
8agriculturalists representing the Illinois Leadership Council
9for Agricultural Education; (2) Secondary Agriculture
10Teachers; (1) "Ag In The Classroom" Teacher; (1) Community
11College Agriculture Teacher; (1) Adult Agriculture Education
12Teacher; (1) University Agriculture Teacher Educator; and (1)
13FFA Representative. All members of the Committee shall be
14appointed by the Governor by and with the advice and consent of
15the Senate. The terms of all members so appointed shall be for
163 years, except that of the members initially appointed, 5
17shall be appointed to serve for terms of 1 year, 4 shall be
18appointed to serve for terms of 2 years and 4 shall be
19appointed to serve for terms of 3 years. All members of the
20Committee shall serve until their successors are appointed and
21qualified. Vacancies in terms shall be filled by appointment of
22the Governor with the advice and consent of the Senate for the
23extent of the unexpired term. The State Board of Education
24shall implement a Build Illinois through Quality Agricultural
25Education plan following receipt of these recommendations
26which shall be made available on or before March 31, 1987.

 

 

10000SB0001sam005- 187 -LRB100 06371 MLM 26512 a

1Recommendations shall include, but not be limited to, the
2development of a curriculum and a strategy for the purpose of
3establishing a source of trained and qualified individuals in
4agriculture, a strategy for articulating the State program in
5agricultural education throughout the public school system,
6and a consumer education outreach strategy regarding the
7importance of agriculture in Illinois. The committee of
8agriculturalists shall serve without compensation.
9    (e) A school district that offers a secondary agricultural
10education program that is approved for State and federal
11funding must ensure that, at a minimum, all of the following
12are available to its secondary agricultural education
13students:
14        (1) An instructional sequence of courses approved by
15    the State Board of Education.
16        (2) A State and nationally affiliated FFA (Future
17    Farmers of America) chapter that is integral to instruction
18    and is not treated solely as an extracurricular activity.
19        (3) A mechanism for ensuring the involvement of all
20    secondary agricultural education students in formal,
21    supervised, agricultural-experience activities and
22    programs.
23    Notwithstanding anything to the contrary contained in this
24Section, the State Board of Education shall award to a school
25district having a population exceeding 500,000 inhabitants
261.1% of the funds appropriated by the General Assembly for any

 

 

10000SB0001sam005- 188 -LRB100 06371 MLM 26512 a

1fiscal year for purposes of payment of claims under this
2Section.
3    (f) Nothing in this Section may prevent those secondary
4agricultural education programs that are in operation before
5the effective date of this amendatory Act of the 94th General
6Assembly and that do not have an active State and nationally
7affiliated FFA chapter from continuing to operate or from
8continuing to receive funding from the State Board of
9Education.
10(Source: P.A. 94-855, eff. 1-1-07.)
 
11    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
12    Sec. 2-3.84. In calculating the amount of State aid to be
13apportioned to the various school districts in this State, the
14State Board of Education shall incorporate and deduct the total
15aggregate adjustments to assessments made by the State Property
16Tax Appeal Board or Cook County Board of Appeals, as reported
17pursuant to Section 16-15 of the Property Tax Code or Section
18129.1 of the Revenue Act of 1939 by the Department of Revenue,
19from the equalized assessed valuation that is otherwise to be
20utilized in the initial calculation.
21    From the total amount of general State aid or
22evidence-based funding to be provided to districts,
23adjustments under this Section together with adjustments as a
24result of recomputation under Section 2-3.33 must not exceed
25$25 million, in the aggregate for all districts under both

 

 

10000SB0001sam005- 189 -LRB100 06371 MLM 26512 a

1Sections combined, of the general State aid or evidence-based
2funding appropriation in any fiscal year; if necessary, amounts
3shall be prorated among districts. If it is necessary to
4prorate claims under this paragraph, then that portion of each
5prorated claim that is approved but not paid in the current
6fiscal year may be resubmitted as a valid claim in the
7following fiscal year.
8(Source: P.A. 93-845, eff. 7-30-04.)
 
9    (105 ILCS 5/2-3.109a)
10    Sec. 2-3.109a. Laboratory schools grant eligibility. A
11laboratory school as defined in Section 18-8 or 18-8.15 may
12apply for and be eligible to receive, subject to the same
13restrictions applicable to school districts, any grant
14administered by the State Board of Education that is available
15for school districts.
16(Source: P.A. 90-566, eff. 1-2-98.)
 
17    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
18    Sec. 3-14.21. Inspection of schools.
19    (a) The regional superintendent shall inspect and survey
20all public schools under his or her supervision and notify the
21board of education, or the trustees of schools in a district
22with trustees, in writing before July 30, whether or not the
23several schools in their district have been kept as required by
24law, using forms provided by the State Board of Education which

 

 

10000SB0001sam005- 190 -LRB100 06371 MLM 26512 a

1are based on the Health/Life Safety Code for Public Schools
2adopted under Section 2-3.12. The regional superintendent
3shall report his or her findings to the State Board of
4Education on forms provided by the State Board of Education.
5    (b) If the regional superintendent determines that a school
6board has failed in a timely manner to correct urgent items
7identified in a previous life-safety report completed under
8Section 2-3.12 or as otherwise previously ordered by the
9regional superintendent, the regional superintendent shall
10order the school board to adopt and submit to the regional
11superintendent a plan for the immediate correction of the
12building violations. This plan shall be adopted following a
13public hearing that is conducted by the school board on the
14violations and the plan and that is preceded by at least 7
15days' prior notice of the hearing published in a newspaper of
16general circulation within the school district. If the regional
17superintendent determines in the next annual inspection that
18the plan has not been completed and that the violations have
19not been corrected, the regional superintendent shall submit a
20report to the State Board of Education with a recommendation
21that the State Board withhold from payments of general State
22aid or evidence-based funding due to the district an amount
23necessary to correct the outstanding violations. The State
24Board, upon notice to the school board and to the regional
25superintendent, shall consider the report at a meeting of the
26State Board, and may order that a sufficient amount of general

 

 

10000SB0001sam005- 191 -LRB100 06371 MLM 26512 a

1State aid or evidence-based funding be withheld from payments
2due to the district to correct the violations. This amount
3shall be paid to the regional superintendent who shall contract
4on behalf of the school board for the correction of the
5outstanding violations.
6    (c) The Office of the State Fire Marshal or a qualified
7fire official, as defined in Section 2-3.12 of this Code, to
8whom the State Fire Marshal has delegated his or her authority
9shall conduct an annual fire safety inspection of each school
10building in this State. The State Fire Marshal or the fire
11official shall coordinate its inspections with the regional
12superintendent. The inspection shall be based on the fire
13safety code authorized in Section 2-3.12 of this Code. Any
14violations shall be reported in writing to the regional
15superintendent and shall reference the specific code sections
16where a discrepancy has been identified within 15 days after
17the inspection has been conducted. The regional superintendent
18shall address those violations that are not corrected in a
19timely manner pursuant to subsection (b) of this Section. The
20inspection must be at no cost to the school district.
21    (d) If a municipality or, in the case of an unincorporated
22area, a county or, if applicable, a fire protection district
23wishes to perform new construction inspections under the
24jurisdiction of a regional superintendent, then the entity must
25register this wish with the regional superintendent. These
26inspections must be based on the building code authorized in

 

 

10000SB0001sam005- 192 -LRB100 06371 MLM 26512 a

1Section 2-3.12 of this Code. The inspections must be at no cost
2to the school district.
3(Source: P.A. 96-734, eff. 8-25-09.)
 
4    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
5    Sec. 7-14A. Annexation compensation. There shall be no
6accounting made after a mere change in boundaries when no new
7district is created, except that those districts whose
8enrollment increases by 90% or more as a result of annexing
9territory detached from another district pursuant to this
10Article are eligible for supplementary State aid payments in
11accordance with Section 11E-135 of this Code. Eligible annexing
12districts shall apply to the State Board of Education for
13supplementary State aid payments by submitting enrollment
14figures for the year immediately preceding and the year
15immediately following the effective date of the boundary change
16for both the district gaining territory and the district losing
17territory. Copies of any intergovernmental agreements between
18the district gaining territory and the district losing
19territory detailing any transfer of fund balances and staff
20must also be submitted. In all instances of changes in
21boundaries, the district losing territory shall not count the
22average daily attendance of pupils living in the territory
23during the year preceding the effective date of the boundary
24change in its claim for reimbursement under Section 18-8.05 or
2518-8.15 of this Code for the school year following the

 

 

10000SB0001sam005- 193 -LRB100 06371 MLM 26512 a

1effective date of the change in boundaries and the district
2receiving the territory shall count the average daily
3attendance of pupils living in the territory during the year
4preceding the effective date of the boundary change in its
5claim for reimbursement under Section 18-8.05 or 18-8.15 of
6this Code for the school year following the effective date of
7the change in boundaries. The changes to this Section made by
8this amendatory Act of the 95th General Assembly are intended
9to be retroactive and applicable to any annexation taking
10effect on or after July 1, 2004.
11(Source: P.A. 99-657, eff. 7-28-16.)
 
12    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
13    Sec. 10-17a. State, school district, and school report
14cards.
15    (1) By October 31, 2013 and October 31 of each subsequent
16school year, the State Board of Education, through the State
17Superintendent of Education, shall prepare a State report card,
18school district report cards, and school report cards, and
19shall by the most economic means provide to each school
20district in this State, including special charter districts and
21districts subject to the provisions of Article 34, the report
22cards for the school district and each of its schools.
23    (2) In addition to any information required by federal law,
24the State Superintendent shall determine the indicators and
25presentation of the school report card, which must include, at

 

 

10000SB0001sam005- 194 -LRB100 06371 MLM 26512 a

1a minimum, the most current data possessed by the State Board
2of Education related to the following:
3        (A) school characteristics and student demographics,
4    including average class size, average teaching experience,
5    student racial/ethnic breakdown, and the percentage of
6    students classified as low-income; the percentage of
7    students classified as English learners; the percentage of
8    students who have individualized education plans or 504
9    plans that provide for special education services; the
10    percentage of students who annually transferred in or out
11    of the school district; the per-pupil operating
12    expenditure of the school district; and the per-pupil State
13    average operating expenditure for the district type
14    (elementary, high school, or unit);
15        (B) curriculum information, including, where
16    applicable, Advanced Placement, International
17    Baccalaureate or equivalent courses, dual enrollment
18    courses, foreign language classes, school personnel
19    resources (including Career Technical Education teachers),
20    before and after school programs, extracurricular
21    activities, subjects in which elective classes are
22    offered, health and wellness initiatives (including the
23    average number of days of Physical Education per week per
24    student), approved programs of study, awards received,
25    community partnerships, and special programs such as
26    programming for the gifted and talented, students with

 

 

10000SB0001sam005- 195 -LRB100 06371 MLM 26512 a

1    disabilities, and work-study students;
2        (C) student outcomes, including, where applicable, the
3    percentage of students deemed proficient on assessments of
4    State standards, the percentage of students in the eighth
5    grade who pass Algebra, the percentage of students enrolled
6    in post-secondary institutions (including colleges,
7    universities, community colleges, trade/vocational
8    schools, and training programs leading to career
9    certification within 2 semesters of high school
10    graduation), the percentage of students graduating from
11    high school who are college and career ready, and the
12    percentage of graduates enrolled in community colleges,
13    colleges, and universities who are in one or more courses
14    that the community college, college, or university
15    identifies as a developmental course;
16        (D) student progress, including, where applicable, the
17    percentage of students in the ninth grade who have earned 5
18    credits or more without failing more than one core class, a
19    measure of students entering kindergarten ready to learn, a
20    measure of growth, and the percentage of students who enter
21    high school on track for college and career readiness;
22        (E) the school environment, including, where
23    applicable, the percentage of students with less than 10
24    absences in a school year, the percentage of teachers with
25    less than 10 absences in a school year for reasons other
26    than professional development, leaves taken pursuant to

 

 

10000SB0001sam005- 196 -LRB100 06371 MLM 26512 a

1    the federal Family Medical Leave Act of 1993, long-term
2    disability, or parental leaves, the 3-year average of the
3    percentage of teachers returning to the school from the
4    previous year, the number of different principals at the
5    school in the last 6 years, 2 or more indicators from any
6    school climate survey selected or approved by the State and
7    administered pursuant to Section 2-3.153 of this Code, with
8    the same or similar indicators included on school report
9    cards for all surveys selected or approved by the State
10    pursuant to Section 2-3.153 of this Code, and the combined
11    percentage of teachers rated as proficient or excellent in
12    their most recent evaluation; and
13        (F) a school district's and its individual schools'
14    balanced accountability measure, in accordance with
15    Section 2-3.25a of this Code; .
16        (G) a school district's Final Percent of Adequacy, as
17    defined in paragraph (4) of subsection (f) of Section
18    18-8.15 of this Code;
19        (H) a school district's Local Capacity Target, as
20    defined in paragraph (2) of subsection (c) of Section
21    18-8.15 of this Code, displayed as a percentage amount; and
22        (I) a school district's Real Receipts, as defined in
23    paragraph (1) of subsection (d) of Section 18-8.15 of this
24    Code, divided by a school district's Adequacy Target, as
25    defined in paragraph (1) of subsection (b) of Section
26    18-8.15 of this Code, displayed as a percentage amount.

 

 

10000SB0001sam005- 197 -LRB100 06371 MLM 26512 a

1    The school report card shall also provide information that
2allows for comparing the current outcome, progress, and
3environment data to the State average, to the school data from
4the past 5 years, and to the outcomes, progress, and
5environment of similar schools based on the type of school and
6enrollment of low-income students, special education students,
7and English learners.
8    (3) At the discretion of the State Superintendent, the
9school district report card shall include a subset of the
10information identified in paragraphs (A) through (E) of
11subsection (2) of this Section, as well as information relating
12to the operating expense per pupil and other finances of the
13school district, and the State report card shall include a
14subset of the information identified in paragraphs (A) through
15(E) of subsection (2) of this Section.
16    (4) Notwithstanding anything to the contrary in this
17Section, in consultation with key education stakeholders, the
18State Superintendent shall at any time have the discretion to
19amend or update any and all metrics on the school, district, or
20State report card.
21    (5) Annually, no more than 30 calendar days after receipt
22of the school district and school report cards from the State
23Superintendent of Education, each school district, including
24special charter districts and districts subject to the
25provisions of Article 34, shall present such report cards at a
26regular school board meeting subject to applicable notice

 

 

10000SB0001sam005- 198 -LRB100 06371 MLM 26512 a

1requirements, post the report cards on the school district's
2Internet web site, if the district maintains an Internet web
3site, make the report cards available to a newspaper of general
4circulation serving the district, and, upon request, send the
5report cards home to a parent (unless the district does not
6maintain an Internet web site, in which case the report card
7shall be sent home to parents without request). If the district
8posts the report card on its Internet web site, the district
9shall send a written notice home to parents stating (i) that
10the report card is available on the web site, (ii) the address
11of the web site, (iii) that a printed copy of the report card
12will be sent to parents upon request, and (iv) the telephone
13number that parents may call to request a printed copy of the
14report card.
15    (6) Nothing contained in this amendatory Act of the 98th
16General Assembly repeals, supersedes, invalidates, or
17nullifies final decisions in lawsuits pending on the effective
18date of this amendatory Act of the 98th General Assembly in
19Illinois courts involving the interpretation of Public Act
2097-8.
21(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
22eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
23    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
24    Sec. 10-19. Length of school term - experimental programs.
25Each school board shall annually prepare a calendar for the

 

 

10000SB0001sam005- 199 -LRB100 06371 MLM 26512 a

1school term, specifying the opening and closing dates and
2providing a minimum term of at least 185 days to insure 176
3days of actual pupil attendance, computable under Section
418-8.05 or 18-8.15, except that for the 1980-1981 school year
5only 175 days of actual pupil attendance shall be required
6because of the closing of schools pursuant to Section 24-2 on
7January 29, 1981 upon the appointment by the President of that
8day as a day of thanksgiving for the freedom of the Americans
9who had been held hostage in Iran. Any days allowed by law for
10teachers' institutes but not used as such or used as parental
11institutes as provided in Section 10-22.18d shall increase the
12minimum term by the school days not so used. Except as provided
13in Section 10-19.1, the board may not extend the school term
14beyond such closing date unless that extension of term is
15necessary to provide the minimum number of computable days. In
16case of such necessary extension school employees shall be paid
17for such additional time on the basis of their regular
18contracts. A school board may specify a closing date earlier
19than that set on the annual calendar when the schools of the
20district have provided the minimum number of computable days
21under this Section. Nothing in this Section prevents the board
22from employing superintendents of schools, principals and
23other nonteaching personnel for a period of 12 months, or in
24the case of superintendents for a period in accordance with
25Section 10-23.8, or prevents the board from employing other
26personnel before or after the regular school term with payment

 

 

10000SB0001sam005- 200 -LRB100 06371 MLM 26512 a

1of salary proportionate to that received for comparable work
2during the school term.
3    A school board may make such changes in its calendar for
4the school term as may be required by any changes in the legal
5school holidays prescribed in Section 24-2. A school board may
6make changes in its calendar for the school term as may be
7necessary to reflect the utilization of teachers' institute
8days as parental institute days as provided in Section
910-22.18d.
10    The calendar for the school term and any changes must be
11submitted to and approved by the regional superintendent of
12schools before the calendar or changes may take effect.
13    With the prior approval of the State Board of Education and
14subject to review by the State Board of Education every 3
15years, any school board may, by resolution of its board and in
16agreement with affected exclusive collective bargaining
17agents, establish experimental educational programs, including
18but not limited to programs for e-learning days as authorized
19under Section 10-20.56 of this Code, self-directed learning, or
20outside of formal class periods, which programs when so
21approved shall be considered to comply with the requirements of
22this Section as respects numbers of days of actual pupil
23attendance and with the other requirements of this Act as
24respects courses of instruction.
25(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 

 

 

10000SB0001sam005- 201 -LRB100 06371 MLM 26512 a

1    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
2    Sec. 10-22.5a. Attendance by dependents of United States
3military personnel, foreign exchange students, and certain
4nonresident pupils.
5    (a) To enter into written agreements with cultural exchange
6organizations, or with nationally recognized eleemosynary
7institutions that promote excellence in the arts, mathematics,
8or science. The written agreements may provide for tuition free
9attendance at the local district school by foreign exchange
10students, or by nonresident pupils of eleemosynary
11institutions. The local board of education, as part of the
12agreement, may require that the cultural exchange program or
13the eleemosynary institutions provide services to the district
14in exchange for the waiver of nonresident tuition.
15    To enter into written agreements with adjacent school
16districts to provide for tuition free attendance by a student
17of the adjacent district when requested for the student's
18health and safety by the student or parent and both districts
19determine that the student's health or safety will be served by
20such attendance. Districts shall not be required to enter into
21such agreements nor be required to alter existing
22transportation services due to the attendance of such
23non-resident pupils.
24    (a-5) If, at the time of enrollment, a dependent of United
25States military personnel is housed in temporary housing
26located outside of a school district, but will be living within

 

 

10000SB0001sam005- 202 -LRB100 06371 MLM 26512 a

1the district within 60 days after the time of initial
2enrollment, the dependent must be allowed to enroll, subject to
3the requirements of this subsection (a-5), and must not be
4charged tuition. Any United States military personnel
5attempting to enroll a dependent under this subsection (a-5)
6shall provide proof that the dependent will be living within
7the district within 60 days after the time of initial
8enrollment. Proof of residency may include, but is not limited
9to, postmarked mail addressed to the military personnel and
10sent to an address located within the district, a lease
11agreement for occupancy of a residence located within the
12district, or proof of ownership of a residence located within
13the district.
14    (b) Nonresident pupils and foreign exchange students
15attending school on a tuition free basis under such agreements
16and nonresident dependents of United States military personnel
17attending school on a tuition free basis may be counted for the
18purposes of determining the apportionment of State aid provided
19under Section 18-8.05 or 18-8.15 of this Code. No organization
20or institution participating in agreements authorized under
21this Section may exclude any individual for participation in
22its program on account of the person's race, color, sex,
23religion or nationality.
24(Source: P.A. 98-739, eff. 7-16-14.)
 
25    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)

 

 

10000SB0001sam005- 203 -LRB100 06371 MLM 26512 a

1    Sec. 10-22.20. Classes for adults and youths whose
2schooling has been interrupted; conditions for State
3reimbursement; use of child care facilities.
4    (a) To establish special classes for the instruction (1) of
5persons of age 21 years or over and (2) of persons less than
6age 21 and not otherwise in attendance in public school, for
7the purpose of providing adults in the community and youths
8whose schooling has been interrupted with such additional basic
9education, vocational skill training, and other instruction as
10may be necessary to increase their qualifications for
11employment or other means of self-support and their ability to
12meet their responsibilities as citizens, including courses of
13instruction regularly accepted for graduation from elementary
14or high schools and for Americanization and high school
15equivalency testing review classes.
16    The board shall pay the necessary expenses of such classes
17out of school funds of the district, including costs of student
18transportation and such facilities or provision for child-care
19as may be necessary in the judgment of the board to permit
20maximum utilization of the courses by students with children,
21and other special needs of the students directly related to
22such instruction. The expenses thus incurred shall be subject
23to State reimbursement, as provided in this Section. The board
24may make a tuition charge for persons taking instruction who
25are not subject to State reimbursement, such tuition charge not
26to exceed the per capita cost of such classes.

 

 

10000SB0001sam005- 204 -LRB100 06371 MLM 26512 a

1    The cost of such instruction, including the additional
2expenses herein authorized, incurred for recipients of
3financial aid under the Illinois Public Aid Code, or for
4persons for whom education and training aid has been authorized
5under Section 9-8 of that Code, shall be assumed in its
6entirety from funds appropriated by the State to the Illinois
7Community College Board.
8    (b) The Illinois Community College Board shall establish
9the standards for the courses of instruction reimbursed under
10this Section. The Illinois Community College Board shall
11supervise the administration of the programs. The Illinois
12Community College Board shall determine the cost of instruction
13in accordance with standards established by the Illinois
14Community College Board, including therein other incidental
15costs as herein authorized, which shall serve as the basis of
16State reimbursement in accordance with the provisions of this
17Section. In the approval of programs and the determination of
18the cost of instruction, the Illinois Community College Board
19shall provide for the maximum utilization of federal funds for
20such programs. The Illinois Community College Board shall also
21provide for:
22        (1) the development of an index of need for program
23    planning and for area funding allocations, as defined by
24    the Illinois Community College Board;
25        (2) the method for calculating hours of instruction, as
26    defined by the Illinois Community College Board, claimable

 

 

10000SB0001sam005- 205 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 206 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 207 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 208 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 209 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 210 -LRB100 06371 MLM 26512 a

1Human Services or other persons or agencies paying for such
2care.
3    (i) The provisions of this Section shall also apply to
4school districts having a population exceeding 500,000.
5    (j) In addition to claiming reimbursement under this
6Section, a school district may claim general State aid under
7Section 18-8.05 or evidence-based funding under Section
818-8.15 for any student under age 21 who is enrolled in courses
9accepted for graduation from elementary or high school and who
10otherwise meets the requirements of Section 18-8.05 or 18-8.15,
11as applicable.
12(Source: P.A. 98-718, eff. 1-1-15.)
 
13    (105 ILCS 5/10-29)
14    Sec. 10-29. Remote educational programs.
15    (a) For purposes of this Section, "remote educational
16program" means an educational program delivered to students in
17the home or other location outside of a school building that
18meets all of the following criteria:
19        (1) A student may participate in the program only after
20    the school district, pursuant to adopted school board
21    policy, and a person authorized to enroll the student under
22    Section 10-20.12b of this Code determine that a remote
23    educational program will best serve the student's
24    individual learning needs. The adopted school board policy
25    shall include, but not be limited to, all of the following:

 

 

10000SB0001sam005- 211 -LRB100 06371 MLM 26512 a

1            (A) Criteria for determining that a remote
2        educational program will best serve a student's
3        individual learning needs. The criteria must include
4        consideration of, at a minimum, a student's prior
5        attendance, disciplinary record, and academic history.
6            (B) Any limitations on the number of students or
7        grade levels that may participate in a remote
8        educational program.
9            (C) A description of the process that the school
10        district will use to approve participation in the
11        remote educational program. The process must include
12        without limitation a requirement that, for any student
13        who qualifies to receive services pursuant to the
14        federal Individuals with Disabilities Education
15        Improvement Act of 2004, the student's participation
16        in a remote educational program receive prior approval
17        from the student's individualized education program
18        team.
19            (D) A description of the process the school
20        district will use to develop and approve a written
21        remote educational plan that meets the requirements of
22        subdivision (5) of this subsection (a).
23            (E) A description of the system the school district
24        will establish to calculate the number of clock hours a
25        student is participating in instruction in accordance
26        with the remote educational program.

 

 

10000SB0001sam005- 212 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 213 -LRB100 06371 MLM 26512 a

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

 

 

10000SB0001sam005- 214 -LRB100 06371 MLM 26512 a

1            (A) Specific achievement goals for the student
2        aligned to State learning standards.
3            (B) A description of all assessments that will be
4        used to measure student progress, which description
5        shall indicate the assessments that will be
6        administered at an attendance center within the school
7        district.
8            (C) A description of the progress reports that will
9        be provided to the school district and the person or
10        persons authorized to enroll the student under Section
11        10-20.12b of this Code.
12            (D) Expectations, processes, and schedules for
13        interaction between a teacher and student.
14            (E) A description of the specific responsibilities
15        of the student's family and the school district with
16        respect to equipment, materials, phone and Internet
17        service, and any other requirements applicable to the
18        home or other location outside of a school building
19        necessary for the delivery of the remote educational
20        program.
21            (F) If applicable, a description of how the remote
22        educational program will be delivered in a manner
23        consistent with the student's individualized education
24        program required by Section 614(d) of the federal
25        Individuals with Disabilities Education Improvement
26        Act of 2004 or plan to ensure compliance with Section

 

 

10000SB0001sam005- 215 -LRB100 06371 MLM 26512 a

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