Sen. James T. Meeks

Filed: 3/5/2009

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 750

2     AMENDMENT NO. ______. Amend Senate Bill 750 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The State Finance Act is amended by adding
5 Sections 5.719, 5.720, 5.721, 6z-76, and 6z-77 as follows:
 
6     (30 ILCS 105/5.719 new)
7     Sec. 5.719. The Education Financial Award System Fund.
 
8     (30 ILCS 105/5.720 new)
9     Sec. 5.720. The Digital Learning Technology Grant Fund.
 
10     (30 ILCS 105/5.721 new)
11     Sec. 5.721. The STEM Education Center Grant Fund.
 
12     (30 ILCS 105/6z-76 new)
13     Sec. 6z-76. The Invest in Illinois Fund.

 

 

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1     (a) The Invest in Illinois Fund is intended to benefit the
2 people of the State of Illinois by creating a specific revenue
3 source to fund capital programs for infrastructure that will
4 support economic growth, education, transportation, tourism,
5 and other capital needs generated by demographic changes (such
6 as but not limited to the aging of the population) across the
7 State.
8     (b) The Invest in Illinois Fund is created as a special
9 fund in the State treasury. All interest earned on moneys in
10 the Fund shall be deposited into the Fund. The Invest in
11 Illinois Fund shall not be subject to sweeps, administrative
12 charges, or chargebacks, such as but not limited to those
13 authorized under Section 8h, or any other fiscal or budgetary
14 maneuver that would in any way result in the transfer of any
15 amounts from the Invest in Illinois Fund to any other fund of
16 the State, or having any of those amounts used for any purpose
17 other than funding the cost of issuance, interest, fees,
18 principal payments, and other debt service on Invest in
19 Illinois Bonds, as that term is defined in subsection (d) of
20 this Section.
21     (c) Beginning in fiscal year 2010, the State Treasurer and
22 the State Comptroller shall transfer $500,000,000 from the
23 General Revenue Fund to the Invest in Illinois Fund. For Fiscal
24 Year 2011 the State Treasurer and the State Comptroller shall
25 transfer $1,000,000,000 from the General Revenue Fund to the
26 Invest in Illinois Fund. For Fiscal Year 2012 the State

 

 

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1 Treasurer and the State Comptroller shall transfer
2 $1,100,000,000 from the General Revenue Fund to the Invest in
3 Illinois Fund, and for Fiscal Year 2013 and each Fiscal Year
4 thereafter the State Comptroller and the State Treasurer shall
5 transfer $1,200,000,000 from the General Revenue Fund to the
6 Invest in Illinois Fund.
7     (d) "Invest in Illinois Bonds" means those bonds issued for
8 the purposes enumerated in this Section, after receiving the
9 recommendation of the Capital Strategy Board, as defined in
10 this Section. The Capital Strategy Board (the "board") shall
11 consist of 5 members, one appointed by the Governor, one
12 appointed by the Speaker of the House, one appointed by the
13 Minority Leader of the House, one appointed by the Senate
14 President, and one appointed by the Minority Leader of the
15 Senate. Each board member shall serve for a 4-year period, and
16 shall have at least 5 years of relevant experience in public or
17 private finance. The board shall recommend the issuance of
18 Invest in Illinois Bonds to the General Assembly by a simple
19 majority vote. No member of the board, nor any business in
20 which a board member has an interest, nor any immediate
21 familial relative, spouse, or in-law (father, mother, sister,
22 brother, son, or daughter) of a board member, may have any
23 financial interest in nor receive any remuneration (such as but
24 not limited to a consulting, referral, legal, or banking fees)
25 for any bond issued due to a recommendation of the board. The
26 board shall gather information and hold public hearings

 

 

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1 regarding the need for capital facilities and infrastructure
2 investments needed in Illinois for the acquisition,
3 development, construction, reconstruction, maintenance,
4 improvement, financing, architectural planning, and
5 installation of capital facilities within the State, whether
6 consisting of buildings, structures, vehicles for public
7 transit, police or fire fighters, durable equipment, land, or
8 interests in land, to be used for any of the following
9 purposes: (i) transportation and transit, including but not
10 limited to railroad, road, bridge, or airport construction and
11 maintenance, public fleet acquisition, and associated building
12 construction or maintenance; (ii) educational purposes for (A)
13 State universities and colleges, (B) the Illinois Community
14 College Board created by the Public Community College Act for
15 grants to public community Colleges authorized under Sections
16 5-11 and 5-12 of the Public Community College Act, (C) local
17 K-12 school districts for school building maintenance,
18 renovation, and construction for all grades, including but not
19 limited to pre-school; (iii) childcare, mental health, and
20 public health facilities and facilities for the care of
21 veterans and their spouses; (iv) correctional purposes at State
22 prison and correctional centers; (v) open spaces, recreational
23 and conservation purposes, environmental protection purposes,
24 and protection of the land, air, or water; (vi) for use by the
25 State, its departments, authorities, public corporations,
26 commissions, and agencies; (vii) for grants by the Secretary of

 

 

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1 State as State Librarian for central library facilities
2 authorized by Section 8 of the Illinois Library System Act, and
3 for grants by the Capital Development Board to units of local
4 government for public library facilities; and (viii) for
5 capital facilities consisting of buildings, structures, roads,
6 bridges, healthcare facilities, police and fire stations and
7 equipment, other durable equipment, and land grants to counties
8 and municipalities. The board shall recommend a capital
9 investment plan for the issuance of Invest in Illinois Bonds
10 covering the needs of the entire State, taking into account the
11 status of existing infrastructure, demographic changes,
12 regional needs, sprawl, economic development for distressed
13 communities, educational priorities, public safety,
14 environmental protection, minority participation, and such
15 other matters as are relevant to devising a strategic and
16 equitable approach to capital planning. Within 12 months after
17 being appointed, the board shall make its initial
18 recommendations to the General Assembly for bonds financed
19 under this Act to be issued in a strategic fashion across
20 Illinois. No such bonds may be issued, however, without
21 approval by the requisite vote of the General Assembly, and
22 concomitant authority for the issuance of the applicable
23 general obligation bond amounts, under the relevant provisions
24 of the General Obligation Bond Act.
 
25     (30 ILCS 105/6z-77 new)

 

 

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1     Sec. 6z-77. The Higher Education Operating Assistance
2 Fund.
3     (a) The Higher Education Operating Assistance Fund is
4 created as a special fund in the State treasury. Moneys in the
5 Fund may be used only for the purposes set forth in this
6 Section. All interest earned on moneys in the Fund must be
7 deposited into the Fund. The Higher Education Operating
8 Assistance Fund shall not be subject to sweeps, administrative
9 charges, or charge backs, such as but not limited to those
10 authorized under Section 8h, or any other fiscal or budgetary
11 maneuver that would in any way transfer any funds from the
12 Higher Education Operating Assistance Fund into any other fund
13 of the State.
14     (b) The General Assembly must transfer from the General
15 Revenue Fund to the Higher Education Operating Assistance Fund,
16 the following amounts: (i) in fiscal year 2010,
17 $300,000,000.00; (ii) in each fiscal year after fiscal year
18 2010, the sum of the total amount appropriated to the Higher
19 Education Operating Assistance Fund in the immediately
20 preceding fiscal year, plus the amount equal to (1) the
21 percentage increase in the Economic Cost Index for all Urban
22 Consumers published by the federal Bureau of Labor Statistics
23 for the then most recent, complete calendar year, multiplied by
24 (2) the total amount appropriated to the Higher Education
25 Operating Assistance Fund in the immediately preceding fiscal
26 year.

 

 

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1     (c) Subject to the conditions set forth in subsection (d),
2 distributions from the Higher Education Operating Assistance
3 Fund shall be as follows: (1) the General Assembly must
4 appropriate 75% of all moneys in the Higher Education Operating
5 Assistance Fund, including any balance from the prior year, to
6 the Board of Higher Education for grants to State universities
7 for their ordinary and contingent expenses; the grants under
8 this item (1) must be distributed to each State university
9 based upon each university's full time equivalent head count;
10 and (2) the General Assembly must appropriate 25% of all moneys
11 in the Higher Education Operating Assistance Fund, including
12 any balance from the prior year, to the Illinois Community
13 College Board for grants to community colleges for their
14 ordinary and contingent expenses; the grants under this item
15 (2) must be distributed to each community college based upon
16 each community college's full time equivalent head count. For
17 purposes of item (2), "full time equivalent head count" means
18 the total number of undergraduate students enrolled in 12 or
19 more semester hours or quarter hours of credit courses in any
20 given semester or quarter.
21     (d) Distributions from the Higher Education Operating
22 Assistance Fund shall not be used for any of the following: (1)
23 executive management; executive level activities concerned
24 with the overall management of, and long-range planning for,
25 the entire university, including but not limited to activities
26 such as policy formation and executive direction, the

 

 

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1 activities of any governing board, the chief executive officer,
2 the senior executive officer, or legal activities conduced on
3 behalf of the university; (2) financial management and
4 operations, including but not limited to activities related to
5 the day-to-day financial management and fiscal operations of
6 the university and long-range financial planning and policy
7 formulations; (3) general administrative and logistical
8 services, including but not limited to general administrative
9 operations and services of the university (with exception of
10 financial operations and student records activities), such as
11 administration of personnel programs, purchasing and
12 maintenance of supplies and materials, management of
13 facilities, and administrative computing support; (4) faculty
14 and staff auxiliary services, including but not limited to
15 non-academic related support services established primarily
16 for faculty and staff, such as faculty lounges and cafeterias;
17 (5) public relations and development, including but not limited
18 to activities established to maintain relations with the local
19 community, the university's alumni, governmental entities, and
20 the public in general, as well as activities carried out to
21 support institution-side fund raising and development efforts;
22 (6) superintendence, including but not limited to activities
23 necessary to carry out the duties of management and
24 administration for all areas under the jurisdiction of the
25 physical plant division of the university; (7) custodial,
26 including but not limited to activities related to custodial

 

 

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1 services in building interiors; (8) grounds maintenance,
2 including but not limited to operation and maintenance of
3 campus landscape and grounds, which includes maintenance of
4 roads and walkways, snow removal, maintenance of fences,
5 retaining walls, and drainage ditches, and care of shrubs,
6 trees, and grass; and (9) transportation, including but not
7 limited to all charges related to the purchase, maintenance,
8 and operation of motor vehicles, specifically for the use of
9 the physical plant department.
10     (e) This amendatory Act of the 96th General Assembly
11 constitutes an irrevocable and continuing appropriation (i)
12 from the General Fund to the Higher Education Operating
13 Assistance Fund and (ii) from the Higher Education Operating
14 Assistance Fund to the Board of Higher Education and to the
15 Illinois Community College Board in accordance with the
16 provisions of this Section.
 
17     Section 10. The Illinois Income Tax Act is amended by
18 changing Sections 201 and 208 and by adding Sections 202.5,
19 218, and 219 as follows:
 
20     (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
21     Sec. 201. Tax Imposed.
22     (a) In general. A tax measured by net income is hereby
23 imposed on every individual, corporation, trust and estate for
24 each taxable year ending after July 31, 1969 on the privilege

 

 

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1 of earning or receiving income in or as a resident of this
2 State. Such tax shall be in addition to all other occupation or
3 privilege taxes imposed by this State or by any municipal
4 corporation or political subdivision thereof.
5     (b) Rates. The tax imposed by subsection (a) of this
6 Section shall be determined as follows, except as adjusted by
7 subsection (d-1):
8         (1) In the case of an individual, trust or estate, for
9     taxable years ending prior to July 1, 1989, an amount equal
10     to 2 1/2% of the taxpayer's net income for the taxable
11     year.
12         (2) In the case of an individual, trust or estate, for
13     taxable years beginning prior to July 1, 1989 and ending
14     after June 30, 1989, an amount equal to the sum of (i) 2
15     1/2% of the taxpayer's net income for the period prior to
16     July 1, 1989, as calculated under Section 202.3, and (ii)
17     3% of the taxpayer's net income for the period after June
18     30, 1989, as calculated under Section 202.3.
19         (3) In the case of an individual, trust or estate, for
20     taxable years beginning after June 30, 1989 and ending
21     before January 1, 2010, an amount equal to 3% of the
22     taxpayer's net income for the taxable year.
23         (4) In the case of an individual, trust, or estate, for
24     taxable years beginning prior to January 1, 2010 and ending
25     after December 31, 2009, an amount equal to the sum of (i)
26     3% of the taxpayer's net income for the period prior to

 

 

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1     January 1, 2010, as calculated under Section 202.5, and
2     (ii) 5% of the taxpayer's net income for the period after
3     December 31, 2009, as calculated under Section
4     202.5. (Blank).
5         (5) In the case of an individual, trust ,or estate, for
6     taxable years beginning on or after January 1, 2010, an
7     amount equal to 5% of the taxpayer's net income for the
8     taxable year. (Blank).
9         (6) In the case of a corporation, for taxable years
10     ending prior to July 1, 1989, an amount equal to 4% of the
11     taxpayer's net income for the taxable year.
12         (7) In the case of a corporation, for taxable years
13     beginning prior to July 1, 1989 and ending after June 30,
14     1989, an amount equal to the sum of (i) 4% of the
15     taxpayer's net income for the period prior to July 1, 1989,
16     as calculated under Section 202.3, and (ii) 4.8% of the
17     taxpayer's net income for the period after June 30, 1989,
18     as calculated under Section 202.3.
19         (8) In the case of a corporation, for taxable years
20     beginning after June 30, 1989 and ending before January 1,
21     2010, an amount equal to 4.8% of the taxpayer's net income
22     for the taxable year.
23         (9) In the case of a corporation, for taxable years
24     beginning prior to January 1, 2010 and ending after
25     December 31, 2009, an amount equal to the sum of (i) 4.8%
26     of the taxpayer's net income for the period prior to

 

 

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1     January 1, 2010, as calculated under Section 202.5, and
2     (ii) 8% of the taxpayer's net income for the period after
3     December 31, 2009, as calculated under Section 202.5.
4         (10) In the case of a corporation, for taxable years
5     beginning on or after January 1, 2010, an amount equal to
6     8% of the taxpayer's net income for the taxable year.
7     (c) Personal Property Tax Replacement Income Tax.
8 Beginning on July 1, 1979 and thereafter, in addition to such
9 income tax, there is also hereby imposed the Personal Property
10 Tax Replacement Income Tax measured by net income on every
11 corporation (including Subchapter S corporations), partnership
12 and trust, for each taxable year ending after June 30, 1979.
13 Such taxes are imposed on the privilege of earning or receiving
14 income in or as a resident of this State. The Personal Property
15 Tax Replacement Income Tax shall be in addition to the income
16 tax imposed by subsections (a) and (b) of this Section and in
17 addition to all other occupation or privilege taxes imposed by
18 this State or by any municipal corporation or political
19 subdivision thereof.
20     (d) Additional Personal Property Tax Replacement Income
21 Tax Rates. The personal property tax replacement income tax
22 imposed by this subsection and subsection (c) of this Section
23 in the case of a corporation, other than a Subchapter S
24 corporation and except as adjusted by subsection (d-1), shall
25 be an additional amount equal to 2.85% of such taxpayer's net
26 income for the taxable year, except that beginning on January

 

 

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1 1, 1981, and thereafter, the rate of 2.85% specified in this
2 subsection shall be reduced to 2.5%, and in the case of a
3 partnership, trust or a Subchapter S corporation shall be an
4 additional amount equal to 1.5% of such taxpayer's net income
5 for the taxable year.
6     (d-1) Rate reduction for certain foreign insurers. In the
7 case of a foreign insurer, as defined by Section 35A-5 of the
8 Illinois Insurance Code, whose state or country of domicile
9 imposes on insurers domiciled in Illinois a retaliatory tax
10 (excluding any insurer whose premiums from reinsurance assumed
11 are 50% or more of its total insurance premiums as determined
12 under paragraph (2) of subsection (b) of Section 304, except
13 that for purposes of this determination premiums from
14 reinsurance do not include premiums from inter-affiliate
15 reinsurance arrangements), beginning with taxable years ending
16 on or after December 31, 1999, the sum of the rates of tax
17 imposed by subsections (b) and (d) shall be reduced (but not
18 increased) to the rate at which the total amount of tax imposed
19 under this Act, net of all credits allowed under this Act,
20 shall equal (i) the total amount of tax that would be imposed
21 on the foreign insurer's net income allocable to Illinois for
22 the taxable year by such foreign insurer's state or country of
23 domicile if that net income were subject to all income taxes
24 and taxes measured by net income imposed by such foreign
25 insurer's state or country of domicile, net of all credits
26 allowed or (ii) a rate of zero if no such tax is imposed on such

 

 

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1 income by the foreign insurer's state of domicile. For the
2 purposes of this subsection (d-1), an inter-affiliate includes
3 a mutual insurer under common management.
4         (1) For the purposes of subsection (d-1), in no event
5     shall the sum of the rates of tax imposed by subsections
6     (b) and (d) be reduced below the rate at which the sum of:
7             (A) the total amount of tax imposed on such foreign
8         insurer under this Act for a taxable year, net of all
9         credits allowed under this Act, plus
10             (B) the privilege tax imposed by Section 409 of the
11         Illinois Insurance Code, the fire insurance company
12         tax imposed by Section 12 of the Fire Investigation
13         Act, and the fire department taxes imposed under
14         Section 11-10-1 of the Illinois Municipal Code,
15     equals 1.25% for taxable years ending prior to December 31,
16     2003, or 1.75% for taxable years ending on or after
17     December 31, 2003, of the net taxable premiums written for
18     the taxable year, as described by subsection (1) of Section
19     409 of the Illinois Insurance Code. This paragraph will in
20     no event increase the rates imposed under subsections (b)
21     and (d).
22         (2) Any reduction in the rates of tax imposed by this
23     subsection shall be applied first against the rates imposed
24     by subsection (b) and only after the tax imposed by
25     subsection (a) net of all credits allowed under this
26     Section other than the credit allowed under subsection (i)

 

 

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1     has been reduced to zero, against the rates imposed by
2     subsection (d).
3     This subsection (d-1) is exempt from the provisions of
4 Section 250.
5     (e) Investment credit. A taxpayer shall be allowed a credit
6 against the Personal Property Tax Replacement Income Tax for
7 investment in qualified property.
8         (1) A taxpayer shall be allowed a credit equal to .5%
9     of the basis of qualified property placed in service during
10     the taxable year, provided such property is placed in
11     service on or after July 1, 1984. There shall be allowed an
12     additional credit equal to .5% of the basis of qualified
13     property placed in service during the taxable year,
14     provided such property is placed in service on or after
15     July 1, 1986, and the taxpayer's base employment within
16     Illinois has increased by 1% or more over the preceding
17     year as determined by the taxpayer's employment records
18     filed with the Illinois Department of Employment Security.
19     Taxpayers who are new to Illinois shall be deemed to have
20     met the 1% growth in base employment for the first year in
21     which they file employment records with the Illinois
22     Department of Employment Security. The provisions added to
23     this Section by Public Act 85-1200 (and restored by Public
24     Act 87-895) shall be construed as declaratory of existing
25     law and not as a new enactment. If, in any year, the
26     increase in base employment within Illinois over the

 

 

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1     preceding year is less than 1%, the additional credit shall
2     be limited to that percentage times a fraction, the
3     numerator of which is .5% and the denominator of which is
4     1%, but shall not exceed .5%. The investment credit shall
5     not be allowed to the extent that it would reduce a
6     taxpayer's liability in any tax year below zero, nor may
7     any credit for qualified property be allowed for any year
8     other than the year in which the property was placed in
9     service in Illinois. For tax years ending on or after
10     December 31, 1987, and on or before December 31, 1988, the
11     credit shall be allowed for the tax year in which the
12     property is placed in service, or, if the amount of the
13     credit exceeds the tax liability for that year, whether it
14     exceeds the original liability or the liability as later
15     amended, such excess may be carried forward and applied to
16     the tax liability of the 5 taxable years following the
17     excess credit years if the taxpayer (i) makes investments
18     which cause the creation of a minimum of 2,000 full-time
19     equivalent jobs in Illinois, (ii) is located in an
20     enterprise zone established pursuant to the Illinois
21     Enterprise Zone Act and (iii) is certified by the
22     Department of Commerce and Community Affairs (now
23     Department of Commerce and Economic Opportunity) as
24     complying with the requirements specified in clause (i) and
25     (ii) by July 1, 1986. The Department of Commerce and
26     Community Affairs (now Department of Commerce and Economic

 

 

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1     Opportunity) shall notify the Department of Revenue of all
2     such certifications immediately. For tax years ending
3     after December 31, 1988, the credit shall be allowed for
4     the tax year in which the property is placed in service,
5     or, if the amount of the credit exceeds the tax liability
6     for that year, whether it exceeds the original liability or
7     the liability as later amended, such excess may be carried
8     forward and applied to the tax liability of the 5 taxable
9     years following the excess credit years. The credit shall
10     be applied to the earliest year for which there is a
11     liability. If there is credit from more than one tax year
12     that is available to offset a liability, earlier credit
13     shall be applied first.
14         (2) The term "qualified property" means property
15     which:
16             (A) is tangible, whether new or used, including
17         buildings and structural components of buildings and
18         signs that are real property, but not including land or
19         improvements to real property that are not a structural
20         component of a building such as landscaping, sewer
21         lines, local access roads, fencing, parking lots, and
22         other appurtenances;
23             (B) is depreciable pursuant to Section 167 of the
24         Internal Revenue Code, except that "3-year property"
25         as defined in Section 168(c)(2)(A) of that Code is not
26         eligible for the credit provided by this subsection

 

 

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1         (e);
2             (C) is acquired by purchase as defined in Section
3         179(d) of the Internal Revenue Code;
4             (D) is used in Illinois by a taxpayer who is
5         primarily engaged in manufacturing, or in mining coal
6         or fluorite, or in retailing, or was placed in service
7         on or after July 1, 2006 in a River Edge Redevelopment
8         Zone established pursuant to the River Edge
9         Redevelopment Zone Act; and
10             (E) has not previously been used in Illinois in
11         such a manner and by such a person as would qualify for
12         the credit provided by this subsection (e) or
13         subsection (f).
14         (3) For purposes of this subsection (e),
15     "manufacturing" means the material staging and production
16     of tangible personal property by procedures commonly
17     regarded as manufacturing, processing, fabrication, or
18     assembling which changes some existing material into new
19     shapes, new qualities, or new combinations. For purposes of
20     this subsection (e) the term "mining" shall have the same
21     meaning as the term "mining" in Section 613(c) of the
22     Internal Revenue Code. For purposes of this subsection (e),
23     the term "retailing" means the sale of tangible personal
24     property or services rendered in conjunction with the sale
25     of tangible consumer goods or commodities.
26         (4) The basis of qualified property shall be the basis

 

 

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1     used to compute the depreciation deduction for federal
2     income tax purposes.
3         (5) If the basis of the property for federal income tax
4     depreciation purposes is increased after it has been placed
5     in service in Illinois by the taxpayer, the amount of such
6     increase shall be deemed property placed in service on the
7     date of such increase in basis.
8         (6) The term "placed in service" shall have the same
9     meaning as under Section 46 of the Internal Revenue Code.
10         (7) If during any taxable year, any property ceases to
11     be qualified property in the hands of the taxpayer within
12     48 months after being placed in service, or the situs of
13     any qualified property is moved outside Illinois within 48
14     months after being placed in service, the Personal Property
15     Tax Replacement Income Tax for such taxable year shall be
16     increased. Such increase shall be determined by (i)
17     recomputing the investment credit which would have been
18     allowed for the year in which credit for such property was
19     originally allowed by eliminating such property from such
20     computation and, (ii) subtracting such recomputed credit
21     from the amount of credit previously allowed. For the
22     purposes of this paragraph (7), a reduction of the basis of
23     qualified property resulting from a redetermination of the
24     purchase price shall be deemed a disposition of qualified
25     property to the extent of such reduction.
26         (8) Unless the investment credit is extended by law,

 

 

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1     the basis of qualified property shall not include costs
2     incurred after December 31, 2008, except for costs incurred
3     pursuant to a binding contract entered into on or before
4     December 31, 2008.
5         (9) Each taxable year ending before December 31, 2000,
6     a partnership may elect to pass through to its partners the
7     credits to which the partnership is entitled under this
8     subsection (e) for the taxable year. A partner may use the
9     credit allocated to him or her under this paragraph only
10     against the tax imposed in subsections (c) and (d) of this
11     Section. If the partnership makes that election, those
12     credits shall be allocated among the partners in the
13     partnership in accordance with the rules set forth in
14     Section 704(b) of the Internal Revenue Code, and the rules
15     promulgated under that Section, and the allocated amount of
16     the credits shall be allowed to the partners for that
17     taxable year. The partnership shall make this election on
18     its Personal Property Tax Replacement Income Tax return for
19     that taxable year. The election to pass through the credits
20     shall be irrevocable.
21         For taxable years ending on or after December 31, 2000,
22     a partner that qualifies its partnership for a subtraction
23     under subparagraph (I) of paragraph (2) of subsection (d)
24     of Section 203 or a shareholder that qualifies a Subchapter
25     S corporation for a subtraction under subparagraph (S) of
26     paragraph (2) of subsection (b) of Section 203 shall be

 

 

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1     allowed a credit under this subsection (e) equal to its
2     share of the credit earned under this subsection (e) during
3     the taxable year by the partnership or Subchapter S
4     corporation, determined in accordance with the
5     determination of income and distributive share of income
6     under Sections 702 and 704 and Subchapter S of the Internal
7     Revenue Code. This paragraph is exempt from the provisions
8     of Section 250.
9     (f) Investment credit; Enterprise Zone; River Edge
10 Redevelopment Zone.
11         (1) A taxpayer shall be allowed a credit against the
12     tax imposed by subsections (a) and (b) of this Section for
13     investment in qualified property which is placed in service
14     in an Enterprise Zone created pursuant to the Illinois
15     Enterprise Zone Act or, for property placed in service on
16     or after July 1, 2006, a River Edge Redevelopment Zone
17     established pursuant to the River Edge Redevelopment Zone
18     Act. For partners, shareholders of Subchapter S
19     corporations, and owners of limited liability companies,
20     if the liability company is treated as a partnership for
21     purposes of federal and State income taxation, there shall
22     be allowed a credit under this subsection (f) to be
23     determined in accordance with the determination of income
24     and distributive share of income under Sections 702 and 704
25     and Subchapter S of the Internal Revenue Code. The credit
26     shall be .5% of the basis for such property. The credit

 

 

09600SB0750sam001 - 22 - LRB096 09436 NHT 22252 a

1     shall be available only in the taxable year in which the
2     property is placed in service in the Enterprise Zone or
3     River Edge Redevelopment Zone and shall not be allowed to
4     the extent that it would reduce a taxpayer's liability for
5     the tax imposed by subsections (a) and (b) of this Section
6     to below zero. For tax years ending on or after December
7     31, 1985, the credit shall be allowed for the tax year in
8     which the property is placed in service, or, if the amount
9     of the credit exceeds the tax liability for that year,
10     whether it exceeds the original liability or the liability
11     as later amended, such excess may be carried forward and
12     applied to the tax liability of the 5 taxable years
13     following the excess credit year. The credit shall be
14     applied to the earliest year for which there is a
15     liability. If there is credit from more than one tax year
16     that is available to offset a liability, the credit
17     accruing first in time shall be applied first.
18         (2) The term qualified property means property which:
19             (A) is tangible, whether new or used, including
20         buildings and structural components of buildings;
21             (B) is depreciable pursuant to Section 167 of the
22         Internal Revenue Code, except that "3-year property"
23         as defined in Section 168(c)(2)(A) of that Code is not
24         eligible for the credit provided by this subsection
25         (f);
26             (C) is acquired by purchase as defined in Section

 

 

09600SB0750sam001 - 23 - LRB096 09436 NHT 22252 a

1         179(d) of the Internal Revenue Code;
2             (D) is used in the Enterprise Zone or River Edge
3         Redevelopment Zone by the taxpayer; and
4             (E) has not been previously used in Illinois in
5         such a manner and by such a person as would qualify for
6         the credit provided by this subsection (f) or
7         subsection (e).
8         (3) The basis of qualified property shall be the basis
9     used to compute the depreciation deduction for federal
10     income tax purposes.
11         (4) If the basis of the property for federal income tax
12     depreciation purposes is increased after it has been placed
13     in service in the Enterprise Zone or River Edge
14     Redevelopment Zone by the taxpayer, the amount of such
15     increase shall be deemed property placed in service on the
16     date of such increase in basis.
17         (5) The term "placed in service" shall have the same
18     meaning as under Section 46 of the Internal Revenue Code.
19         (6) If during any taxable year, any property ceases to
20     be qualified property in the hands of the taxpayer within
21     48 months after being placed in service, or the situs of
22     any qualified property is moved outside the Enterprise Zone
23     or River Edge Redevelopment Zone within 48 months after
24     being placed in service, the tax imposed under subsections
25     (a) and (b) of this Section for such taxable year shall be
26     increased. Such increase shall be determined by (i)

 

 

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1     recomputing the investment credit which would have been
2     allowed for the year in which credit for such property was
3     originally allowed by eliminating such property from such
4     computation, and (ii) subtracting such recomputed credit
5     from the amount of credit previously allowed. For the
6     purposes of this paragraph (6), a reduction of the basis of
7     qualified property resulting from a redetermination of the
8     purchase price shall be deemed a disposition of qualified
9     property to the extent of such reduction.
10         (7) There shall be allowed an additional credit equal
11     to 0.5% of the basis of qualified property placed in
12     service during the taxable year in a River Edge
13     Redevelopment Zone, provided such property is placed in
14     service on or after July 1, 2006, and the taxpayer's base
15     employment within Illinois has increased by 1% or more over
16     the preceding year as determined by the taxpayer's
17     employment records filed with the Illinois Department of
18     Employment Security. Taxpayers who are new to Illinois
19     shall be deemed to have met the 1% growth in base
20     employment for the first year in which they file employment
21     records with the Illinois Department of Employment
22     Security. If, in any year, the increase in base employment
23     within Illinois over the preceding year is less than 1%,
24     the additional credit shall be limited to that percentage
25     times a fraction, the numerator of which is 0.5% and the
26     denominator of which is 1%, but shall not exceed 0.5%.

 

 

09600SB0750sam001 - 25 - LRB096 09436 NHT 22252 a

1     (g) Jobs Tax Credit; Enterprise Zone, River Edge
2 Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
3         (1) A taxpayer conducting a trade or business in an
4     enterprise zone or a High Impact Business designated by the
5     Department of Commerce and Economic Opportunity or for
6     taxable years ending on or after December 31, 2006, in a
7     River Edge Redevelopment Zone conducting a trade or
8     business in a federally designated Foreign Trade Zone or
9     Sub-Zone shall be allowed a credit against the tax imposed
10     by subsections (a) and (b) of this Section in the amount of
11     $500 per eligible employee hired to work in the zone during
12     the taxable year.
13         (2) To qualify for the credit:
14             (A) the taxpayer must hire 5 or more eligible
15         employees to work in an enterprise zone, River Edge
16         Redevelopment Zone, or federally designated Foreign
17         Trade Zone or Sub-Zone during the taxable year;
18             (B) the taxpayer's total employment within the
19         enterprise zone, River Edge Redevelopment Zone, or
20         federally designated Foreign Trade Zone or Sub-Zone
21         must increase by 5 or more full-time employees beyond
22         the total employed in that zone at the end of the
23         previous tax year for which a jobs tax credit under
24         this Section was taken, or beyond the total employed by
25         the taxpayer as of December 31, 1985, whichever is
26         later; and

 

 

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1             (C) the eligible employees must be employed 180
2         consecutive days in order to be deemed hired for
3         purposes of this subsection.
4         (3) An "eligible employee" means an employee who is:
5             (A) Certified by the Department of Commerce and
6         Economic Opportunity as "eligible for services"
7         pursuant to regulations promulgated in accordance with
8         Title II of the Job Training Partnership Act, Training
9         Services for the Disadvantaged or Title III of the Job
10         Training Partnership Act, Employment and Training
11         Assistance for Dislocated Workers Program.
12             (B) Hired after the enterprise zone, River Edge
13         Redevelopment Zone, or federally designated Foreign
14         Trade Zone or Sub-Zone was designated or the trade or
15         business was located in that zone, whichever is later.
16             (C) Employed in the enterprise zone, River Edge
17         Redevelopment Zone, or Foreign Trade Zone or Sub-Zone.
18         An employee is employed in an enterprise zone or
19         federally designated Foreign Trade Zone or Sub-Zone if
20         his services are rendered there or it is the base of
21         operations for the services performed.
22             (D) A full-time employee working 30 or more hours
23         per week.
24         (4) For tax years ending on or after December 31, 1985
25     and prior to December 31, 1988, the credit shall be allowed
26     for the tax year in which the eligible employees are hired.

 

 

09600SB0750sam001 - 27 - LRB096 09436 NHT 22252 a

1     For tax years ending on or after December 31, 1988, the
2     credit shall be allowed for the tax year immediately
3     following the tax year in which the eligible employees are
4     hired. If the amount of the credit exceeds the tax
5     liability for that year, whether it exceeds the original
6     liability or the liability as later amended, such excess
7     may be carried forward and applied to the tax liability of
8     the 5 taxable years following the excess credit year. The
9     credit shall be applied to the earliest year for which
10     there is a liability. If there is credit from more than one
11     tax year that is available to offset a liability, earlier
12     credit shall be applied first.
13         (5) The Department of Revenue shall promulgate such
14     rules and regulations as may be deemed necessary to carry
15     out the purposes of this subsection (g).
16         (6) The credit shall be available for eligible
17     employees hired on or after January 1, 1986.
18     (h) Investment credit; High Impact Business.
19         (1) Subject to subsections (b) and (b-5) of Section 5.5
20     of the Illinois Enterprise Zone Act, a taxpayer shall be
21     allowed a credit against the tax imposed by subsections (a)
22     and (b) of this Section for investment in qualified
23     property which is placed in service by a Department of
24     Commerce and Economic Opportunity designated High Impact
25     Business. The credit shall be .5% of the basis for such
26     property. The credit shall not be available (i) until the

 

 

09600SB0750sam001 - 28 - LRB096 09436 NHT 22252 a

1     minimum investments in qualified property set forth in
2     subdivision (a)(3)(A) of Section 5.5 of the Illinois
3     Enterprise Zone Act have been satisfied or (ii) until the
4     time authorized in subsection (b-5) of the Illinois
5     Enterprise Zone Act for entities designated as High Impact
6     Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
7     (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
8     Act, and shall not be allowed to the extent that it would
9     reduce a taxpayer's liability for the tax imposed by
10     subsections (a) and (b) of this Section to below zero. The
11     credit applicable to such investments shall be taken in the
12     taxable year in which such investments have been completed.
13     The credit for additional investments beyond the minimum
14     investment by a designated high impact business authorized
15     under subdivision (a)(3)(A) of Section 5.5 of the Illinois
16     Enterprise Zone Act shall be available only in the taxable
17     year in which the property is placed in service and shall
18     not be allowed to the extent that it would reduce a
19     taxpayer's liability for the tax imposed by subsections (a)
20     and (b) of this Section to below zero. For tax years ending
21     on or after December 31, 1987, the credit shall be allowed
22     for the tax year in which the property is placed in
23     service, or, if the amount of the credit exceeds the tax
24     liability for that year, whether it exceeds the original
25     liability or the liability as later amended, such excess
26     may be carried forward and applied to the tax liability of

 

 

09600SB0750sam001 - 29 - LRB096 09436 NHT 22252 a

1     the 5 taxable years following the excess credit year. The
2     credit shall be applied to the earliest year for which
3     there is a liability. If there is credit from more than one
4     tax year that is available to offset a liability, the
5     credit accruing first in time shall be applied first.
6         Changes made in this subdivision (h)(1) by Public Act
7     88-670 restore changes made by Public Act 85-1182 and
8     reflect existing law.
9         (2) The term qualified property means property which:
10             (A) is tangible, whether new or used, including
11         buildings and structural components of buildings;
12             (B) is depreciable pursuant to Section 167 of the
13         Internal Revenue Code, except that "3-year property"
14         as defined in Section 168(c)(2)(A) of that Code is not
15         eligible for the credit provided by this subsection
16         (h);
17             (C) is acquired by purchase as defined in Section
18         179(d) of the Internal Revenue Code; and
19             (D) is not eligible for the Enterprise Zone
20         Investment Credit provided by subsection (f) of this
21         Section.
22         (3) The basis of qualified property shall be the basis
23     used to compute the depreciation deduction for federal
24     income tax purposes.
25         (4) If the basis of the property for federal income tax
26     depreciation purposes is increased after it has been placed

 

 

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1     in service in a federally designated Foreign Trade Zone or
2     Sub-Zone located in Illinois by the taxpayer, the amount of
3     such increase shall be deemed property placed in service on
4     the date of such increase in basis.
5         (5) The term "placed in service" shall have the same
6     meaning as under Section 46 of the Internal Revenue Code.
7         (6) If during any taxable year ending on or before
8     December 31, 1996, any property ceases to be qualified
9     property in the hands of the taxpayer within 48 months
10     after being placed in service, or the situs of any
11     qualified property is moved outside Illinois within 48
12     months after being placed in service, the tax imposed under
13     subsections (a) and (b) of this Section for such taxable
14     year shall be increased. Such increase shall be determined
15     by (i) recomputing the investment credit which would have
16     been allowed for the year in which credit for such property
17     was originally allowed by eliminating such property from
18     such computation, and (ii) subtracting such recomputed
19     credit from the amount of credit previously allowed. For
20     the purposes of this paragraph (6), a reduction of the
21     basis of qualified property resulting from a
22     redetermination of the purchase price shall be deemed a
23     disposition of qualified property to the extent of such
24     reduction.
25         (7) Beginning with tax years ending after December 31,
26     1996, if a taxpayer qualifies for the credit under this

 

 

09600SB0750sam001 - 31 - LRB096 09436 NHT 22252 a

1     subsection (h) and thereby is granted a tax abatement and
2     the taxpayer relocates its entire facility in violation of
3     the explicit terms and length of the contract under Section
4     18-183 of the Property Tax Code, the tax imposed under
5     subsections (a) and (b) of this Section shall be increased
6     for the taxable year in which the taxpayer relocated its
7     facility by an amount equal to the amount of credit
8     received by the taxpayer under this subsection (h).
9     (i) Credit for Personal Property Tax Replacement Income
10 Tax. For tax years ending prior to December 31, 2003, a credit
11 shall be allowed against the tax imposed by subsections (a) and
12 (b) of this Section for the tax imposed by subsections (c) and
13 (d) of this Section. This credit shall be computed by
14 multiplying the tax imposed by subsections (c) and (d) of this
15 Section by a fraction, the numerator of which is base income
16 allocable to Illinois and the denominator of which is Illinois
17 base income, and further multiplying the product by the tax
18 rate imposed by subsections (a) and (b) of this Section.
19     Any credit earned on or after December 31, 1986 under this
20 subsection which is unused in the year the credit is computed
21 because it exceeds the tax liability imposed by subsections (a)
22 and (b) for that year (whether it exceeds the original
23 liability or the liability as later amended) may be carried
24 forward and applied to the tax liability imposed by subsections
25 (a) and (b) of the 5 taxable years following the excess credit
26 year, provided that no credit may be carried forward to any

 

 

09600SB0750sam001 - 32 - LRB096 09436 NHT 22252 a

1 year ending on or after December 31, 2003. This credit shall be
2 applied first to the earliest year for which there is a
3 liability. If there is a credit under this subsection from more
4 than one tax year that is available to offset a liability the
5 earliest credit arising under this subsection shall be applied
6 first.
7     If, during any taxable year ending on or after December 31,
8 1986, the tax imposed by subsections (c) and (d) of this
9 Section for which a taxpayer has claimed a credit under this
10 subsection (i) is reduced, the amount of credit for such tax
11 shall also be reduced. Such reduction shall be determined by
12 recomputing the credit to take into account the reduced tax
13 imposed by subsections (c) and (d). If any portion of the
14 reduced amount of credit has been carried to a different
15 taxable year, an amended return shall be filed for such taxable
16 year to reduce the amount of credit claimed.
17     (j) Training expense credit. Beginning with tax years
18 ending on or after December 31, 1986 and prior to December 31,
19 2003, a taxpayer shall be allowed a credit against the tax
20 imposed by subsections (a) and (b) under this Section for all
21 amounts paid or accrued, on behalf of all persons employed by
22 the taxpayer in Illinois or Illinois residents employed outside
23 of Illinois by a taxpayer, for educational or vocational
24 training in semi-technical or technical fields or semi-skilled
25 or skilled fields, which were deducted from gross income in the
26 computation of taxable income. The credit against the tax

 

 

09600SB0750sam001 - 33 - LRB096 09436 NHT 22252 a

1 imposed by subsections (a) and (b) shall be 1.6% of such
2 training expenses. For partners, shareholders of subchapter S
3 corporations, and owners of limited liability companies, if the
4 liability company is treated as a partnership for purposes of
5 federal and State income taxation, there shall be allowed a
6 credit under this subsection (j) to be determined in accordance
7 with the determination of income and distributive share of
8 income under Sections 702 and 704 and subchapter S of the
9 Internal Revenue Code.
10     Any credit allowed under this subsection which is unused in
11 the year the credit is earned may be carried forward to each of
12 the 5 taxable years following the year for which the credit is
13 first computed until it is used. This credit shall be applied
14 first to the earliest year for which there is a liability. If
15 there is a credit under this subsection from more than one tax
16 year that is available to offset a liability the earliest
17 credit arising under this subsection shall be applied first. No
18 carryforward credit may be claimed in any tax year ending on or
19 after December 31, 2003.
20     (k) Research and development credit.
21     For tax years ending after July 1, 1990 and prior to
22 December 31, 2003, and beginning again for tax years ending on
23 or after December 31, 2004, a taxpayer shall be allowed a
24 credit against the tax imposed by subsections (a) and (b) of
25 this Section for increasing research activities in this State.
26 The credit allowed against the tax imposed by subsections (a)

 

 

09600SB0750sam001 - 34 - LRB096 09436 NHT 22252 a

1 and (b) shall be equal to 6 1/2% of the qualifying expenditures
2 for increasing research activities in this State. For partners,
3 shareholders of subchapter S corporations, and owners of
4 limited liability companies, if the liability company is
5 treated as a partnership for purposes of federal and State
6 income taxation, there shall be allowed a credit under this
7 subsection to be determined in accordance with the
8 determination of income and distributive share of income under
9 Sections 702 and 704 and subchapter S of the Internal Revenue
10 Code.
11     For purposes of this subsection, "qualifying expenditures"
12 means the qualifying expenditures as defined for the federal
13 credit for increasing research activities which would be
14 allowable under Section 41 of the Internal Revenue Code and
15 which are conducted in this State, "qualifying expenditures for
16 increasing research activities in this State" means the excess
17 of qualifying expenditures for the taxable year in which
18 incurred over qualifying expenditures for the base period,
19 "qualifying expenditures for the base period" means the average
20 of the qualifying expenditures for each year in the base
21 period, and "base period" means the 3 taxable years immediately
22 preceding the taxable year for which the determination is being
23 made.
24     Any credit in excess of the tax liability for the taxable
25 year may be carried forward. A taxpayer may elect to have the
26 unused credit shown on its final completed return carried over

 

 

09600SB0750sam001 - 35 - LRB096 09436 NHT 22252 a

1 as a credit against the tax liability for the following 5
2 taxable years or until it has been fully used, whichever occurs
3 first; provided that no credit earned in a tax year ending
4 prior to December 31, 2003 may be carried forward to any year
5 ending on or after December 31, 2003.
6     If an unused credit is carried forward to a given year from
7 2 or more earlier years, that credit arising in the earliest
8 year will be applied first against the tax liability for the
9 given year. If a tax liability for the given year still
10 remains, the credit from the next earliest year will then be
11 applied, and so on, until all credits have been used or no tax
12 liability for the given year remains. Any remaining unused
13 credit or credits then will be carried forward to the next
14 following year in which a tax liability is incurred, except
15 that no credit can be carried forward to a year which is more
16 than 5 years after the year in which the expense for which the
17 credit is given was incurred.
18     No inference shall be drawn from this amendatory Act of the
19 91st General Assembly in construing this Section for taxable
20 years beginning before January 1, 1999.
21     (l) Environmental Remediation Tax Credit.
22         (i) For tax years ending after December 31, 1997 and on
23     or before December 31, 2001, a taxpayer shall be allowed a
24     credit against the tax imposed by subsections (a) and (b)
25     of this Section for certain amounts paid for unreimbursed
26     eligible remediation costs, as specified in this

 

 

09600SB0750sam001 - 36 - LRB096 09436 NHT 22252 a

1     subsection. For purposes of this Section, "unreimbursed
2     eligible remediation costs" means costs approved by the
3     Illinois Environmental Protection Agency ("Agency") under
4     Section 58.14 of the Environmental Protection Act that were
5     paid in performing environmental remediation at a site for
6     which a No Further Remediation Letter was issued by the
7     Agency and recorded under Section 58.10 of the
8     Environmental Protection Act. The credit must be claimed
9     for the taxable year in which Agency approval of the
10     eligible remediation costs is granted. The credit is not
11     available to any taxpayer if the taxpayer or any related
12     party caused or contributed to, in any material respect, a
13     release of regulated substances on, in, or under the site
14     that was identified and addressed by the remedial action
15     pursuant to the Site Remediation Program of the
16     Environmental Protection Act. After the Pollution Control
17     Board rules are adopted pursuant to the Illinois
18     Administrative Procedure Act for the administration and
19     enforcement of Section 58.9 of the Environmental
20     Protection Act, determinations as to credit availability
21     for purposes of this Section shall be made consistent with
22     those rules. For purposes of this Section, "taxpayer"
23     includes a person whose tax attributes the taxpayer has
24     succeeded to under Section 381 of the Internal Revenue Code
25     and "related party" includes the persons disallowed a
26     deduction for losses by paragraphs (b), (c), and (f)(1) of

 

 

09600SB0750sam001 - 37 - LRB096 09436 NHT 22252 a

1     Section 267 of the Internal Revenue Code by virtue of being
2     a related taxpayer, as well as any of its partners. The
3     credit allowed against the tax imposed by subsections (a)
4     and (b) shall be equal to 25% of the unreimbursed eligible
5     remediation costs in excess of $100,000 per site, except
6     that the $100,000 threshold shall not apply to any site
7     contained in an enterprise zone as determined by the
8     Department of Commerce and Community Affairs (now
9     Department of Commerce and Economic Opportunity). The
10     total credit allowed shall not exceed $40,000 per year with
11     a maximum total of $150,000 per site. For partners and
12     shareholders of subchapter S corporations, there shall be
13     allowed a credit under this subsection to be determined in
14     accordance with the determination of income and
15     distributive share of income under Sections 702 and 704 and
16     subchapter S of the Internal Revenue Code.
17         (ii) A credit allowed under this subsection that is
18     unused in the year the credit is earned may be carried
19     forward to each of the 5 taxable years following the year
20     for which the credit is first earned until it is used. The
21     term "unused credit" does not include any amounts of
22     unreimbursed eligible remediation costs in excess of the
23     maximum credit per site authorized under paragraph (i).
24     This credit shall be applied first to the earliest year for
25     which there is a liability. If there is a credit under this
26     subsection from more than one tax year that is available to

 

 

09600SB0750sam001 - 38 - LRB096 09436 NHT 22252 a

1     offset a liability, the earliest credit arising under this
2     subsection shall be applied first. A credit allowed under
3     this subsection may be sold to a buyer as part of a sale of
4     all or part of the remediation site for which the credit
5     was granted. The purchaser of a remediation site and the
6     tax credit shall succeed to the unused credit and remaining
7     carry-forward period of the seller. To perfect the
8     transfer, the assignor shall record the transfer in the
9     chain of title for the site and provide written notice to
10     the Director of the Illinois Department of Revenue of the
11     assignor's intent to sell the remediation site and the
12     amount of the tax credit to be transferred as a portion of
13     the sale. In no event may a credit be transferred to any
14     taxpayer if the taxpayer or a related party would not be
15     eligible under the provisions of subsection (i).
16         (iii) For purposes of this Section, the term "site"
17     shall have the same meaning as under Section 58.2 of the
18     Environmental Protection Act.
19     (m) Education expense credit. Beginning with tax years
20 ending after December 31, 1999, a taxpayer who is the custodian
21 of one or more qualifying pupils shall be allowed a credit
22 against the tax imposed by subsections (a) and (b) of this
23 Section for qualified education expenses incurred on behalf of
24 the qualifying pupils. The credit shall be equal to 25% of
25 qualified education expenses, but in no event may the total
26 credit under this subsection claimed by a family that is the

 

 

09600SB0750sam001 - 39 - LRB096 09436 NHT 22252 a

1 custodian of qualifying pupils exceed $500. In no event shall a
2 credit under this subsection reduce the taxpayer's liability
3 under this Act to less than zero. This subsection is exempt
4 from the provisions of Section 250 of this Act.
5     For purposes of this subsection:
6     "Qualifying pupils" means individuals who (i) are
7 residents of the State of Illinois, (ii) are under the age of
8 21 at the close of the school year for which a credit is
9 sought, and (iii) during the school year for which a credit is
10 sought were full-time pupils enrolled in a kindergarten through
11 twelfth grade education program at any school, as defined in
12 this subsection.
13     "Qualified education expense" means the amount incurred on
14 behalf of a qualifying pupil in excess of $250 for tuition,
15 book fees, and lab fees at the school in which the pupil is
16 enrolled during the regular school year.
17     "School" means any public or nonpublic elementary or
18 secondary school in Illinois that is in compliance with Title
19 VI of the Civil Rights Act of 1964 and attendance at which
20 satisfies the requirements of Section 26-1 of the School Code,
21 except that nothing shall be construed to require a child to
22 attend any particular public or nonpublic school to qualify for
23 the credit under this Section.
24     "Custodian" means, with respect to qualifying pupils, an
25 Illinois resident who is a parent, the parents, a legal
26 guardian, or the legal guardians of the qualifying pupils.

 

 

09600SB0750sam001 - 40 - LRB096 09436 NHT 22252 a

1     (n) River Edge Redevelopment Zone site remediation tax
2 credit.
3         (i) For tax years ending on or after December 31, 2006,
4     a taxpayer shall be allowed a credit against the tax
5     imposed by subsections (a) and (b) of this Section for
6     certain amounts paid for unreimbursed eligible remediation
7     costs, as specified in this subsection. For purposes of
8     this Section, "unreimbursed eligible remediation costs"
9     means costs approved by the Illinois Environmental
10     Protection Agency ("Agency") under Section 58.14a of the
11     Environmental Protection Act that were paid in performing
12     environmental remediation at a site within a River Edge
13     Redevelopment Zone for which a No Further Remediation
14     Letter was issued by the Agency and recorded under Section
15     58.10 of the Environmental Protection Act. The credit must
16     be claimed for the taxable year in which Agency approval of
17     the eligible remediation costs is granted. The credit is
18     not available to any taxpayer if the taxpayer or any
19     related party caused or contributed to, in any material
20     respect, a release of regulated substances on, in, or under
21     the site that was identified and addressed by the remedial
22     action pursuant to the Site Remediation Program of the
23     Environmental Protection Act. Determinations as to credit
24     availability for purposes of this Section shall be made
25     consistent with rules adopted by the Pollution Control
26     Board pursuant to the Illinois Administrative Procedure

 

 

09600SB0750sam001 - 41 - LRB096 09436 NHT 22252 a

1     Act for the administration and enforcement of Section 58.9
2     of the Environmental Protection Act. For purposes of this
3     Section, "taxpayer" includes a person whose tax attributes
4     the taxpayer has succeeded to under Section 381 of the
5     Internal Revenue Code and "related party" includes the
6     persons disallowed a deduction for losses by paragraphs
7     (b), (c), and (f)(1) of Section 267 of the Internal Revenue
8     Code by virtue of being a related taxpayer, as well as any
9     of its partners. The credit allowed against the tax imposed
10     by subsections (a) and (b) shall be equal to 25% of the
11     unreimbursed eligible remediation costs in excess of
12     $100,000 per site.
13         (ii) A credit allowed under this subsection that is
14     unused in the year the credit is earned may be carried
15     forward to each of the 5 taxable years following the year
16     for which the credit is first earned until it is used. This
17     credit shall be applied first to the earliest year for
18     which there is a liability. If there is a credit under this
19     subsection from more than one tax year that is available to
20     offset a liability, the earliest credit arising under this
21     subsection shall be applied first. A credit allowed under
22     this subsection may be sold to a buyer as part of a sale of
23     all or part of the remediation site for which the credit
24     was granted. The purchaser of a remediation site and the
25     tax credit shall succeed to the unused credit and remaining
26     carry-forward period of the seller. To perfect the

 

 

09600SB0750sam001 - 42 - LRB096 09436 NHT 22252 a

1     transfer, the assignor shall record the transfer in the
2     chain of title for the site and provide written notice to
3     the Director of the Illinois Department of Revenue of the
4     assignor's intent to sell the remediation site and the
5     amount of the tax credit to be transferred as a portion of
6     the sale. In no event may a credit be transferred to any
7     taxpayer if the taxpayer or a related party would not be
8     eligible under the provisions of subsection (i).
9         (iii) For purposes of this Section, the term "site"
10     shall have the same meaning as under Section 58.2 of the
11     Environmental Protection Act.
12         (iv) This subsection is exempt from the provisions of
13     Section 250.
14 (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
 
15     (35 ILCS 5/202.5 new)
16     Sec. 202.5. Net income attributable to the period prior to
17 January 1, 2010 and net income attributable to the period after
18 December 31, 2009.
19     (a) In general. With respect to the taxable year of a
20 taxpayer beginning prior to January 1, 2010 and ending after
21 December 31, 2009, net income for the period after December 31,
22 2009 is that amount that bears the same ratio to the taxpayer's
23 net income for the entire taxable year as the number of days in
24 that year after December 31, 2009 bears to the total number of
25 days in that year, and the net income for the period prior to

 

 

09600SB0750sam001 - 43 - LRB096 09436 NHT 22252 a

1 January 1, 2010 is that amount that bears the same ratio to the
2 taxpayer's net income for the entire taxable year as the number
3 of days in that year prior to January 1, 2010 bears to the
4 total number of days in that year.
5     (b) Election to attribute income and deduction items
6 specifically to the respective portions of a taxable year prior
7 to January 1, 2010 and after December 31, 2009. In the case of
8 a taxpayer with a taxable year beginning prior to January 1,
9 2010 and ending after December 31, 2009, the taxpayer may
10 elect, instead of the procedure established in subsection (a)
11 of this Section, to determine net income on a specific
12 accounting basis for the 2 portions of his or her taxable year:
13         (i) from the beginning of the taxable year through
14     December 31, 2009; and
15         (ii) from January 1, 2010 through the end of the
16     taxable year.
17     If the taxpayer elects specific accounting under this
18 subsection, there shall be taken into account in computing base
19 income for each of the 2 portions of the taxable year only
20 those items earned, received, paid, incurred or accrued in each
21 such period. The standard exemption provided by Section 204
22 must be divided between the respective periods in amounts that
23 bear the same ratio to the total exemption allowable under
24 Section 204 (determined without regard to this Section) as the
25 total number of days in each such period bears to the total
26 number of days in the taxable year. The election provided by

 

 

09600SB0750sam001 - 44 - LRB096 09436 NHT 22252 a

1 this subsection must be made in form and manner that the
2 Department requires by rule, but must be made no later than the
3 due date (including any extensions thereof) for the filing of
4 the return for the taxable year, and is irrevocable.
 
5     (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
6     Sec. 208. Tax credit for residential real property taxes.
7 Beginning with tax years ending on or after December 31, 1991
8 and before January 1, 2010, every individual taxpayer shall be
9 entitled to a tax credit equal to 5% of real property taxes
10 paid by such taxpayer during the taxable year on the principal
11 residence of the taxpayer. In the case of multi-unit or
12 multi-use structures and farm dwellings, the taxes on the
13 taxpayer's principal residence shall be that portion of the
14 total taxes which is attributable to such principal residence.
15     For tax years beginning on January 1, 2010 and thereafter,
16 every individual, trust, estate, and corporate taxpayer shall
17 be entitled to a tax credit equal to 10% of real property taxes
18 paid by the taxpayer during the taxable year on real property
19 situated within the State. In the case of multi-unit or
20 multi-use structures, the taxes on the taxpayer's principal
21 residence shall be that portion of the total taxes that is
22 attributable to the principal residence. The credit under this
23 Section may not be carried forward or back. If the amount of
24 the credit exceeds the income tax liability for the applicable
25 tax year, then the excess credit must be refunded to the

 

 

09600SB0750sam001 - 45 - LRB096 09436 NHT 22252 a

1 taxpayer. However, a refund under this Section may not exceed
2 $1,000. This Section is exempt from the provisions of Section
3 250 of this Act.
4 (Source: P.A. 87-17.)
 
5     (35 ILCS 5/218 new)
6     Sec. 218. Family Tax Credit.
7     (a) For taxable years beginning on or after January 1,
8 2010, each individual taxpayer filing single or as a married
9 person filing separately that reports total annual income of
10 less than $27,652 (the "eligibility cap for single and married
11 filing separately") or is a married couple filing jointly or an
12 individual filing as head of household that reports total
13 annual income of less than $55,304 (the "eligibility cap for
14 married filing jointly and head of household"), is entitled to
15 a credit against the tax imposed under subsections (a) and (b)
16 of Section 201 of this Act for each dependent and personal
17 exemption he or she is entitled to claim on his or her federal
18 return under Section 151 of the Internal Revenue Code of 1986.
19 The credit is known as the "Family Tax Credit" and shall be in
20 those amounts per personal exemption and dependent that are
21 identified in subsection (b) of this Section. The Family Tax
22 Credit may be claimed only upon proper filing of an Illinois
23 income tax return by an eligible taxpayer. The eligibility caps
24 shall increase for each tax year beginning after December 31,
25 2010, by an amount equal to the percentage increase, if any, in

 

 

09600SB0750sam001 - 46 - LRB096 09436 NHT 22252 a

1 the Consumer Price Index published by the U.S. Bureau of Labor
2 Statistics for the immediately preceding complete calendar
3 year, multiplied by the eligibility caps for that immediately
4 preceding tax year.
5     (b) The amount of the credit is determined as follows:
6         (1) for a single taxpayer with a total annual income
7     of:
8             (A) less than $17,136, the credit is $50;
9             (B) $17,136 or more but less than $19,419, the
10         credit is $65;
11             (C) $19,420 or more but less than $19,420, the
12         credit is $125;
13             (D) $19,420 or more but less than $21,705, the
14         credit is $185; or
15             (E) $21,705 or more but less than $27,652, the
16         credit is $248;
17         (2) for married taxpayers filing separately with a
18     total annual income of:
19             (A) less than $11,424, the credit is $50;
20             (B) $11,424 or more but less than $14,280, the
21         credit is $65;
22             (C) $14,280 or more but less than $17,136, the
23         credit is $125;
24             (D) $17,136 or more but less than $20,563, the
25         credit is $185; and
26             (E) $20,563 or more but less than $27,652, the

 

 

09600SB0750sam001 - 47 - LRB096 09436 NHT 22252 a

1         credit is $248;
2         (3) for married taxpayers filing jointly with a total
3     annual income of:
4             (A) less than $22,848, the credit is $50;
5             (B) $22,848 or more but less than $28,560, the
6         credit is $65;
7             (C) $28,560 or more but less than $34,272, the
8         credit is $125;
9             (D) $34,272 or more but less than $41,126, the
10         credit is $185; and
11             (E) $41,126 or more but less than $55,304, the
12         credit is $248; and
13         (4) for a taxpayer who is a head of household with a
14     total annual income of:
15             (A) less than $22,848, the credit is $50;
16             (B) $22,848 or more but less than $28,560, the
17         credit is $65;
18             (C) $28,560 or more but less than $34,272, the
19         credit is $125;
20             (D) $34,272 or more but less than $41,126, the
21         credit is $185; and
22             (E) $41,126 or more but less than $55,304, the
23         credit is $248.
24     The dollar range of total annual income identified in the
25 respective filing statuses and the credit per
26 dependent/personal exemption amounts associated therewith,

 

 

09600SB0750sam001 - 48 - LRB096 09436 NHT 22252 a

1 shall each increase in each tax year beginning after December
2 31, 2010, by an amount equal to the applicable percentage
3 increase, if any, in the Consumer Price Index for the
4 immediately preceding complete calendar year, multiplied by
5 the applicable total annual income range amounts and the credit
6 per dependent/personal exemption amounts associated therewith.
7 The Department of Revenue shall update the total annual income
8 range amounts and associated credit amounts for the Family Tax
9 Credit annually and distribute the updated table with the
10 Illinois personal income tax returns
11     (c) If the amount of the Family Tax Credit exceeds the
12 income tax liability of an eligible taxpayer, the State shall
13 refund to the taxpayer the difference between the Family Tax
14 Credit and that eligible taxpayer's income tax liability.
15     (d) This Section is exempt from the provisions of Section
16 250 of this Act.
 
17     (35 ILCS 5/219 new)
18     Sec. 219. Residential rent credit. Each individual
19 taxpayer paying rent on a principal residence located within
20 the State is entitled to a credit, not to exceed $500, against
21 the personal income tax imposed under this Act, in the amount
22 of 5% of the annual rent paid by that taxpayer during the
23 taxable year for the residence of the taxpayer. If the amount
24 of the renter's credit exceeds the income tax liability of an
25 eligible taxpayer, the State shall refund to that taxpayer the

 

 

09600SB0750sam001 - 49 - LRB096 09436 NHT 22252 a

1 difference between the credit and income tax liability. This
2 Section is exempt from the provisions of Section 250 of this
3 Act.
 
4     Section 15. The Retailers' Occupation Tax Act is amended by
5 changing Sections 1 and 2 as follows:
 
6     (35 ILCS 120/1)  (from Ch. 120, par. 440)
7     Sec. 1. Definitions. "Sale at retail" means any transfer of
8 the ownership of or title to tangible personal property to a
9 purchaser, for the purpose of use or consumption, and not for
10 the purpose of resale in any form as tangible personal property
11 to the extent not first subjected to a use for which it was
12 purchased, for a valuable consideration: Provided that the
13 property purchased is deemed to be purchased for the purpose of
14 resale, despite first being used, to the extent to which it is
15 resold as an ingredient of an intentionally produced product or
16 byproduct of manufacturing. For this purpose, slag produced as
17 an incident to manufacturing pig iron or steel and sold is
18 considered to be an intentionally produced byproduct of
19 manufacturing. Transactions whereby the possession of the
20 property is transferred but the seller retains the title as
21 security for payment of the selling price shall be deemed to be
22 sales.
23     "Sale at retail" shall be construed to include any transfer
24 of the ownership of or title to tangible personal property to a

 

 

09600SB0750sam001 - 50 - LRB096 09436 NHT 22252 a

1 purchaser, for use or consumption by any other person to whom
2 such purchaser may transfer the tangible personal property
3 without a valuable consideration, and to include any transfer,
4 whether made for or without a valuable consideration, for
5 resale in any form as tangible personal property unless made in
6 compliance with Section 2c of this Act.
7     Sales of tangible personal property, which property, to the
8 extent not first subjected to a use for which it was purchased,
9 as an ingredient or constituent, goes into and forms a part of
10 tangible personal property subsequently the subject of a "Sale
11 at retail", are not sales at retail as defined in this Act:
12 Provided that the property purchased is deemed to be purchased
13 for the purpose of resale, despite first being used, to the
14 extent to which it is resold as an ingredient of an
15 intentionally produced product or byproduct of manufacturing.
16     "Sale at retail" includes all of the following services, as
17 enumerated in the North American Industry Classification
18 System Manual (NAICS), 1997, prepared by the United States
19 Office of Management and Budget:
20         (1) Specialized good warehousing and storage
21     (4931902).
22         (2) Household goods warehousing and storage (4931901).
23         (3) Marinas (7131901).
24         (4) Travel arrangement reservation services (5615).
25         (5) Consumer electronics repair and maintenance
26     (811211).

 

 

09600SB0750sam001 - 51 - LRB096 09436 NHT 22252 a

1         (6) Personal and household goods.
2         (7) Carpet and upholstery cleaning services (56174).
3         (8) Dating services (8129902).
4         (9) Hair, nail, and skin care (81211).
5         (10) Other personal services other than hair, nail,
6     facial, or nonpermanent makeup services (81219).
7         (11) Dry cleaning and laundry, except coin-operated
8     (81232).
9         (12) Consumer goods rental (5322).
10         (13) General goods rental (5323).
11         (14) Diet and weight reducing services (812191).
12         (15) Investigation services (561611).
13         (16) Bail bonding (8129901).
14         (17) Telephone answering services (561421).
15         (18) Photographic studios, portrait (541921).
16         (19) Linen supply (812331).
17         (20) Industrial launderers (812332).
18         (21) Interior design services (54141).
19         (22) Computer systems design and related services
20     (5415).
21         (23) Credit bureaus (56145).
22         (24) Collection agencies (56144).
23         (25) Other business services, including copy shops
24     (561439).
25         (26) Automotive repair and maintenance (8111).
26         (27) Parking lots and garages (81293).

 

 

09600SB0750sam001 - 52 - LRB096 09436 NHT 22252 a

1         (28) Motor vehicle towing (48841).
2         (29) Racetracks (711212).
3         (30) Amusement parks and arcades (7131).
4         (31) Bowling Centers (71395).
5         (32) Cable and other program distribution (51322).
6         (33) Circuses (7111901).
7         (34) Coin operated amusement devices, except slots
8     (7139905).
9         (35) Golf courses and country clubs (71391).
10         (36) Fitness and recreational sports centers (711211).
11         (37) Sports teams and clubs (711211).
12         (38) Performing arts companies (7111).
13         (39) Miniature golf courses (7139904).
14         (40) Scenic and sightseeing transportation (487).
15         (41) Limousine services (48532).
16         (42) Unscheduled chartered passenger air
17     transportation (481211).
18         (43) Motion picture theaters, except drive-in theaters
19     (512131).
20         (44) Drive-in motion picture theaters (512132).
21         (45) Horse boarding and training (not race horses)
22     (11521).
23         (46) Pet grooming (81291).
24         (47) Landscaping services (including lawn care)
25     (56173).
26         (48) Carpentry, painting, plumbing and similar trades

 

 

09600SB0750sam001 - 53 - LRB096 09436 NHT 22252 a

1     (238).
2         (49) Construction service (grading, excavating, etc.)
3     (23593).
4         (50) Water well drilling (23581).
5         (51) Income from intrastate transportation of persons
6     (485).
7         (52) Automotive storage.
8         (53) Sewer and refuse, industrial (33132/562).
9         (54) Mini -storage (53113).
10         (55) Household goods storage (49311).
11         (56) Cold storage (49312).
12         (57) Marina Service (docking, storage, cleaning,
13     repair) (71393).
14         (58) Marine towing service (incl. tugboats) (48833).
15         (59) Packing and crating (488991).
16         (60) Water (22131).
17         (61) Service charges of banking institutions (522).
18         (62) Investment counseling (52392/3).
19         (63) Income from funeral services (81221).
20         (64) Garment services (altering & repairing) (81149).
21         (65) Gift and package wrapping service (5619).
22         (66) Gift and package wrapping service(81231).
23         (67) Shoe repair (81143).
24         (68) Massage services (81299).
25         (69) Swimming pool cleaning & maintenance (56179).
26         (70) Tax return preparation (541213).

 

 

09600SB0750sam001 - 54 - LRB096 09436 NHT 22252 a

1         (71) Tuxedo rental (53222).
2         (72) Water softening and conditioning (56199).
3         (73) Armored car services (561613).
4         (74) Advertising agency fees (not ad placement)
5     (54181).
6         (75) Commercial art and graphic design (54143).
7         (76) Temporary help agencies (56132).
8         (77) Employment agencies (56131).
9         (78) Test laboratories (excluding medical) (54138).
10         (79) Maintenance and janitorial services (56172).
11         (80) Exterminating (includes termite services)
12     (56171).
13         (81) Packing and crating.
14         (82) Tire recapping and repairing (326212/811198).
15         (83) Private investigation (detective) services
16     (561612).
17         (84) Printing (32311).
18         (85) Internet Service Providers-Dialup (518111).
19         (86) Sign construction and installation (54189).
20         (87) Internet Service Providers-DSL or other broadband
21     (518111).
22         (88) Automotive washing and waxing (811192).
23         (89) Automotive road service and towing services
24     (48848112).
25         (90) Auto service. except repairs, incl. painting &
26     lube (81119).

 

 

09600SB0750sam001 - 55 - LRB096 09436 NHT 22252 a

1         (91) Parking lots & garages (81293).
2         (92) Automotive rustproofing & undercoating (811198).
3         (93) Amusement park admission & rides (71311).
4         (94) Circuses and fairs -- admission and games (7113).
5         (95) Cable TV services (51751).
6         (96) Admission to school and college sports events
7     (7112).
8         (97) Membership fees in private clubs (71391).
9         (98) Admission to cultural events (7111).
10         (99) Pinball and other mechanical amusements (71312).
11         (100) Rental of video tapes for home viewing (53223).
12         (101) Personal property, short term and long term
13     (generally) (5322).
14         (102) Taxidermy.
15         (103) Custom fabrication labor.
16         (104) Repair labor, generally.
17         (105) Rental of hand tools to licensed contractors
18     (532412).
19         (106) Trailer parks - overnight (7212).
20         (107) Welding labor (fabrication and repair).
21         (108) Custom meat slaughtering, cutting and wrapping.
22         (109) Installation charges - other than seller of
23     goods.
24         (110) Custom processing (on customer's property).
25         (111)Installation charges by persons selling property.
26         (112) Labor charges on repair of aircraft.

 

 

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1         (113) Labor charges - repairs to intrastate vessels.
2         (114) Labor - repairs to commercial fishing vessels
3     (336611).
4         (115) Labor charges on repairs to railroad rolling
5     stock.
6         (116) Labor - repairs or remodeling of real property.
7         (117) Labor charges - repairs other tangible property
8     (811).
9         (118) Labor on radio/TV repairs; other electronic
10     equip (8112).
11         (119) Labor charges on repairs to motor vehicles
12     (811111).
13     "Sale at retail" shall be construed to include any Illinois
14 florist's sales transaction in which the purchase order is
15 received in Illinois by a florist and the sale is for use or
16 consumption, but the Illinois florist has a florist in another
17 state deliver the property to the purchaser or the purchaser's
18 donee in such other state.
19     Nonreusable tangible personal property that is used by
20 persons engaged in the business of operating a restaurant,
21 cafeteria, or drive-in is a sale for resale when it is
22 transferred to customers in the ordinary course of business as
23 part of the sale of food or beverages and is used to deliver,
24 package, or consume food or beverages, regardless of where
25 consumption of the food or beverages occurs. Examples of those
26 items include, but are not limited to nonreusable, paper and

 

 

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1 plastic cups, plates, baskets, boxes, sleeves, buckets or other
2 containers, utensils, straws, placemats, napkins, doggie bags,
3 and wrapping or packaging materials that are transferred to
4 customers as part of the sale of food or beverages in the
5 ordinary course of business.
6     The purchase, employment and transfer of such tangible
7 personal property as newsprint and ink for the primary purpose
8 of conveying news (with or without other information) is not a
9 purchase, use or sale of tangible personal property.
10     A person whose activities are organized and conducted
11 primarily as a not-for-profit service enterprise, and who
12 engages in selling tangible personal property at retail
13 (whether to the public or merely to members and their guests)
14 is engaged in the business of selling tangible personal
15 property at retail with respect to such transactions, excepting
16 only a person organized and operated exclusively for
17 charitable, religious or educational purposes either (1), to
18 the extent of sales by such person to its members, students,
19 patients or inmates of tangible personal property to be used
20 primarily for the purposes of such person, or (2), to the
21 extent of sales by such person of tangible personal property
22 which is not sold or offered for sale by persons organized for
23 profit. The selling of school books and school supplies by
24 schools at retail to students is not "primarily for the
25 purposes of" the school which does such selling. The provisions
26 of this paragraph shall not apply to nor subject to taxation

 

 

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1 occasional dinners, socials or similar activities of a person
2 organized and operated exclusively for charitable, religious
3 or educational purposes, whether or not such activities are
4 open to the public.
5     A person who is the recipient of a grant or contract under
6 Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
7 serves meals to participants in the federal Nutrition Program
8 for the Elderly in return for contributions established in
9 amount by the individual participant pursuant to a schedule of
10 suggested fees as provided for in the federal Act is not
11 engaged in the business of selling tangible personal property
12 at retail with respect to such transactions.
13     "Purchaser" means anyone who, through a sale at retail,
14 acquires the ownership of or title to tangible personal
15 property for a valuable consideration.
16     "Reseller of motor fuel" means any person engaged in the
17 business of selling or delivering or transferring title of
18 motor fuel to another person other than for use or consumption.
19 No person shall act as a reseller of motor fuel within this
20 State without first being registered as a reseller pursuant to
21 Section 2c or a retailer pursuant to Section 2a.
22     "Selling price" or the "amount of sale" means the
23 consideration for a sale valued in money whether received in
24 money or otherwise, including cash, credits, property, other
25 than as hereinafter provided, and services, but not including
26 the value of or credit given for traded-in tangible personal

 

 

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1 property where the item that is traded-in is of like kind and
2 character as that which is being sold, and shall be determined
3 without any deduction on account of the cost of the property
4 sold, the cost of materials used, labor or service cost or any
5 other expense whatsoever, but does not include charges that are
6 added to prices by sellers on account of the seller's tax
7 liability under this Act, or on account of the seller's duty to
8 collect, from the purchaser, the tax that is imposed by the Use
9 Tax Act, or, except as otherwise provided with respect to any
10 cigarette tax imposed by a home rule unit, on account of the
11 seller's tax liability under any local occupation tax
12 administered by the Department, or, except as otherwise
13 provided with respect to any cigarette tax imposed by a home
14 rule unit on account of the seller's duty to collect, from the
15 purchasers, the tax that is imposed under any local use tax
16 administered by the Department. Effective December 1, 1985,
17 "selling price" shall include charges that are added to prices
18 by sellers on account of the seller's tax liability under the
19 Cigarette Tax Act, on account of the sellers' duty to collect,
20 from the purchaser, the tax imposed under the Cigarette Use Tax
21 Act, and on account of the seller's duty to collect, from the
22 purchaser, any cigarette tax imposed by a home rule unit.
23     The phrase "like kind and character" shall be liberally
24 construed (including but not limited to any form of motor
25 vehicle for any form of motor vehicle, or any kind of farm or
26 agricultural implement for any other kind of farm or

 

 

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1 agricultural implement), while not including a kind of item
2 which, if sold at retail by that retailer, would be exempt from
3 retailers' occupation tax and use tax as an isolated or
4 occasional sale.
5     "Gross receipts" from the sales of tangible personal
6 property at retail means the total selling price or the amount
7 of such sales, as hereinbefore defined. In the case of charge
8 and time sales, the amount thereof shall be included only as
9 and when payments are received by the seller. Receipts or other
10 consideration derived by a seller from the sale, transfer or
11 assignment of accounts receivable to a wholly owned subsidiary
12 will not be deemed payments prior to the time the purchaser
13 makes payment on such accounts.
14     "Department" means the Department of Revenue.
15     "Person" means any natural individual, firm, partnership,
16 association, joint stock company, joint adventure, public or
17 private corporation, limited liability company, or a receiver,
18 executor, trustee, guardian or other representative appointed
19 by order of any court.
20     The isolated or occasional sale of tangible personal
21 property at retail by a person who does not hold himself out as
22 being engaged (or who does not habitually engage) in selling
23 such tangible personal property at retail, or a sale through a
24 bulk vending machine, does not constitute engaging in a
25 business of selling such tangible personal property at retail
26 within the meaning of this Act; provided that any person who is

 

 

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1 engaged in a business which is not subject to the tax imposed
2 by this Act because of involving the sale of or a contract to
3 sell real estate or a construction contract to improve real
4 estate or a construction contract to engineer, install, and
5 maintain an integrated system of products, but who, in the
6 course of conducting such business, transfers tangible
7 personal property to users or consumers in the finished form in
8 which it was purchased, and which does not become real estate
9 or was not engineered and installed, under any provision of a
10 construction contract or real estate sale or real estate sales
11 agreement entered into with some other person arising out of or
12 because of such nontaxable business, is engaged in the business
13 of selling tangible personal property at retail to the extent
14 of the value of the tangible personal property so transferred.
15 If, in such a transaction, a separate charge is made for the
16 tangible personal property so transferred, the value of such
17 property, for the purpose of this Act, shall be the amount so
18 separately charged, but not less than the cost of such property
19 to the transferor; if no separate charge is made, the value of
20 such property, for the purposes of this Act, is the cost to the
21 transferor of such tangible personal property. Construction
22 contracts for the improvement of real estate consisting of
23 engineering, installation, and maintenance of voice, data,
24 video, security, and all telecommunication systems do not
25 constitute engaging in a business of selling tangible personal
26 property at retail within the meaning of this Act if they are

 

 

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1 sold at one specified contract price.
2     A person who holds himself or herself out as being engaged
3 (or who habitually engages) in selling tangible personal
4 property at retail is a person engaged in the business of
5 selling tangible personal property at retail hereunder with
6 respect to such sales (and not primarily in a service
7 occupation) notwithstanding the fact that such person designs
8 and produces such tangible personal property on special order
9 for the purchaser and in such a way as to render the property
10 of value only to such purchaser, if such tangible personal
11 property so produced on special order serves substantially the
12 same function as stock or standard items of tangible personal
13 property that are sold at retail.
14     Persons who engage in the business of transferring tangible
15 personal property upon the redemption of trading stamps are
16 engaged in the business of selling such property at retail and
17 shall be liable for and shall pay the tax imposed by this Act
18 on the basis of the retail value of the property transferred
19 upon redemption of such stamps.
20     "Bulk vending machine" means a vending machine, containing
21 unsorted confections, nuts, toys, or other items designed
22 primarily to be used or played with by children which, when a
23 coin or coins of a denomination not larger than $0.50 are
24 inserted, are dispensed in equal portions, at random and
25 without selection by the customer.
26 (Source: P.A. 95-723, eff. 6-23-08.)
 

 

 

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1     (35 ILCS 120/2)  (from Ch. 120, par. 441)
2     Sec. 2. Tax imposed. A tax is imposed upon persons engaged
3 in the business of selling at retail tangible personal
4 property, including computer software, and including
5 photographs, negatives, and positives that are the product of
6 photoprocessing, but not including products of photoprocessing
7 produced for use in motion pictures for public commercial
8 exhibition, or engaged in the business of providing services as
9 set forth in in Section 1 of this Act. Beginning January 1,
10 2001, prepaid telephone calling arrangements shall be
11 considered tangible personal property subject to the tax
12 imposed under this Act regardless of the form in which those
13 arrangements may be embodied, transmitted, or fixed by any
14 method now known or hereafter developed.
15 (Source: P.A. 91-51, eff. 6-30-99; 91-870, eff. 6-22-00.)
 
16     Section 20. The Illinois Pension Code is amended by
17 changing Section 16-158 as follows:
 
18     (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
19     Sec. 16-158. Contributions by State and other employing
20 units.
21     (a) The State shall make contributions to the System by
22 means of appropriations from the Common School Fund and other
23 State funds of amounts which, together with other employer

 

 

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1 contributions, employee contributions, investment income, and
2 other income, will be sufficient to meet the cost of
3 maintaining and administering the System on a 90% funded basis
4 in accordance with actuarial recommendations.
5     The Board shall determine the amount of State contributions
6 required for each fiscal year on the basis of the actuarial
7 tables and other assumptions adopted by the Board and the
8 recommendations of the actuary, using the formula in subsection
9 (b-3).
10     (a-1) Annually, on or before November 15, the Board shall
11 certify to the Governor the amount of the required State
12 contribution for the coming fiscal year. The certification
13 shall include a copy of the actuarial recommendations upon
14 which it is based.
15     On or before May 1, 2004, the Board shall recalculate and
16 recertify to the Governor the amount of the required State
17 contribution to the System for State fiscal year 2005, taking
18 into account the amounts appropriated to and received by the
19 System under subsection (d) of Section 7.2 of the General
20 Obligation Bond Act.
21     On or before July 1, 2005, the Board shall recalculate and
22 recertify to the Governor the amount of the required State
23 contribution to the System for State fiscal year 2006, taking
24 into account the changes in required State contributions made
25 by this amendatory Act of the 94th General Assembly.
26     (b) Through State fiscal year 1995, the State contributions

 

 

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1 shall be paid to the System in accordance with Section 18-7 of
2 the School Code.
3     (b-1) Beginning in State fiscal year 1996, on the 15th day
4 of each month, or as soon thereafter as may be practicable, the
5 Board shall submit vouchers for payment of State contributions
6 to the System, in a total monthly amount of one-twelfth of the
7 required annual State contribution certified under subsection
8 (a-1). From the effective date of this amendatory Act of the
9 93rd General Assembly through June 30, 2004, the Board shall
10 not submit vouchers for the remainder of fiscal year 2004 in
11 excess of the fiscal year 2004 certified contribution amount
12 determined under this Section after taking into consideration
13 the transfer to the System under subsection (a) of Section
14 6z-61 of the State Finance Act. These vouchers shall be paid by
15 the State Comptroller and Treasurer by warrants drawn on the
16 funds appropriated to the System for that fiscal year.
17     If in any month the amount remaining unexpended from all
18 other appropriations to the System for the applicable fiscal
19 year (including the appropriations to the System under Section
20 8.12 of the State Finance Act and Section 1 of the State
21 Pension Funds Continuing Appropriation Act) is less than the
22 amount lawfully vouchered under this subsection, the
23 difference shall be paid from the Common School Fund under the
24 continuing appropriation authority provided in Section 1.1 of
25 the State Pension Funds Continuing Appropriation Act.
26     (b-2) Allocations from the Common School Fund apportioned

 

 

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1 to school districts not coming under this System shall not be
2 diminished or affected by the provisions of this Article.
3     (b-3) For State fiscal years 2011 through 2045, the minimum
4 contribution to the System to be made by the State for each
5 fiscal year shall be an amount determined by the System to be
6 sufficient to bring the total assets of the System up to 90% of
7 the total actuarial liabilities of the System by the end of
8 State fiscal year 2045. In making these determinations, the
9 required State contribution shall be calculated each year as a
10 level percentage of payroll over the years remaining to and
11 including fiscal year 2045 and shall be determined under the
12 projected unit credit actuarial cost method.
13     For State fiscal years 1996 through 2005, the State
14 contribution to the System, as a percentage of the applicable
15 employee payroll, shall be increased in equal annual increments
16 so that by State fiscal year 2011, the State is contributing at
17 the rate required under this Section; except that in the
18 following specified State fiscal years, the State contribution
19 to the System shall not be less than the following indicated
20 percentages of the applicable employee payroll, even if the
21 indicated percentage will produce a State contribution in
22 excess of the amount otherwise required under this subsection
23 and subsection (a), and notwithstanding any contrary
24 certification made under subsection (a-1) before the effective
25 date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
26 in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY

 

 

09600SB0750sam001 - 67 - LRB096 09436 NHT 22252 a

1 2003; and 13.56% in FY 2004.
2     Notwithstanding any other provision of this Article, the
3 total required State contribution for State fiscal year 2006 is
4 $534,627,700.
5     Notwithstanding any other provision of this Article, the
6 total required State contribution for State fiscal year 2007 is
7 $738,014,500.
8     For each of State fiscal years 2008 through 2010, the State
9 contribution to the System, as a percentage of the applicable
10 employee payroll, shall be increased in equal annual increments
11 from the required State contribution for State fiscal year
12 2007, so that by State fiscal year 2011, the State is
13 contributing at the rate otherwise required under this Section.
14     Beginning in State fiscal year 2046, the minimum State
15 contribution for each fiscal year shall be the amount needed to
16 maintain the total assets of the System at 90% of the total
17 actuarial liabilities of the System.
18     Amounts received by the System pursuant to Section 25 of
19 the Budget Stabilization Act or Section 8.12 of the State
20 Finance Act in any fiscal year do not reduce and do not
21 constitute payment of any portion of the minimum State
22 contribution required under this Article in that fiscal year.
23 Such amounts shall not reduce, and shall not be included in the
24 calculation of, the required State contributions under this
25 Article in any future year until the System has reached a
26 funding ratio of at least 90%. A reference in this Article to

 

 

09600SB0750sam001 - 68 - LRB096 09436 NHT 22252 a

1 the "required State contribution" or any substantially similar
2 term does not include or apply to any amounts payable to the
3 System under Section 25 of the Budget Stabilization Act.
4     Notwithstanding any other provision of this Section, the
5 required State contribution for State fiscal year 2005 and for
6 fiscal year 2008 and each fiscal year thereafter, as calculated
7 under this Section and certified under subsection (a-1), shall
8 not exceed an amount equal to (i) the amount of the required
9 State contribution that would have been calculated under this
10 Section for that fiscal year if the System had not received any
11 payments under subsection (d) of Section 7.2 of the General
12 Obligation Bond Act, minus (ii) the portion of the State's
13 total debt service payments for that fiscal year on the bonds
14 issued for the purposes of that Section 7.2, as determined and
15 certified by the Comptroller, that is the same as the System's
16 portion of the total moneys distributed under subsection (d) of
17 Section 7.2 of the General Obligation Bond Act. In determining
18 this maximum for State fiscal years 2008 through 2010, however,
19 the amount referred to in item (i) shall be increased, as a
20 percentage of the applicable employee payroll, in equal
21 increments calculated from the sum of the required State
22 contribution for State fiscal year 2007 plus the applicable
23 portion of the State's total debt service payments for fiscal
24 year 2007 on the bonds issued for the purposes of Section 7.2
25 of the General Obligation Bond Act, so that, by State fiscal
26 year 2011, the State is contributing at the rate otherwise

 

 

09600SB0750sam001 - 69 - LRB096 09436 NHT 22252 a

1 required under this Section.
2     (c) Payment of the required State contributions and of all
3 pensions, retirement annuities, death benefits, refunds, and
4 other benefits granted under or assumed by this System, and all
5 expenses in connection with the administration and operation
6 thereof, are obligations of the State.
7     If members are paid from special trust or federal funds
8 which are administered by the employing unit, whether school
9 district or other unit, the employing unit shall pay to the
10 System from such funds the full accruing retirement costs based
11 upon that service, as determined by the System. Employer
12 contributions, based on salary paid to members from federal
13 funds, may be forwarded by the distributing agency of the State
14 of Illinois to the System prior to allocation, in an amount
15 determined in accordance with guidelines established by such
16 agency and the System.
17     (d) Effective July 1, 1986, any employer of a teacher as
18 defined in paragraph (8) of Section 16-106 shall pay the
19 employer's normal cost of benefits based upon the teacher's
20 service, in addition to employee contributions, as determined
21 by the System. Such employer contributions shall be forwarded
22 monthly in accordance with guidelines established by the
23 System.
24     However, with respect to benefits granted under Section
25 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
26 of Section 16-106, the employer's contribution shall be 12%

 

 

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

 

 

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1     Each employer of teachers is entitled to a credit against
2 the contributions required under this subsection (e) with
3 respect to salaries paid to teachers for the period January 1,
4 2002 through June 30, 2003, equal to the amount paid by that
5 employer under subsection (a-5) of Section 6.6 of the State
6 Employees Group Insurance Act of 1971 with respect to salaries
7 paid to teachers for that period.
8     The additional 1% employee contribution required under
9 Section 16-152 by this amendatory Act of 1998 is the
10 responsibility of the teacher and not the teacher's employer,
11 unless the employer agrees, through collective bargaining or
12 otherwise, to make the contribution on behalf of the teacher.
13     If an employer is required by a contract in effect on May
14 1, 1998 between the employer and an employee organization to
15 pay, on behalf of all its full-time employees covered by this
16 Article, all mandatory employee contributions required under
17 this Article, then the employer shall be excused from paying
18 the employer contribution required under this subsection (e)
19 for the balance of the term of that contract. The employer and
20 the employee organization shall jointly certify to the System
21 the existence of the contractual requirement, in such form as
22 the System may prescribe. This exclusion shall cease upon the
23 termination, extension, or renewal of the contract at any time
24 after May 1, 1998.
25     (f) If the amount of a teacher's salary for any school year
26 used to determine final average salary exceeds the member's

 

 

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

 

 

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1 due. If the employer disputes the amount of the bill, it may,
2 within 30 days after receipt of the bill, apply to the System
3 in writing for a recalculation. The application must specify in
4 detail the grounds of the dispute and, if the employer asserts
5 that the calculation is subject to subsection (g) or (h) of
6 this Section, must include an affidavit setting forth and
7 attesting to all facts within the employer's knowledge that are
8 pertinent to the applicability of that subsection. Upon
9 receiving a timely application for recalculation, the System
10 shall review the application and, if appropriate, recalculate
11 the amount due.
12     The employer contributions required under this subsection
13 (f) may be paid in the form of a lump sum within 90 days after
14 receipt of the bill. If the employer contributions are not paid
15 within 90 days after receipt of the bill, then interest will be
16 charged at a rate equal to the System's annual actuarially
17 assumed rate of return on investment compounded annually from
18 the 91st day after receipt of the bill. Payments must be
19 concluded within 3 years after the employer's receipt of the
20 bill.
21     (g) This subsection (g) applies only to payments made or
22 salary increases given on or after June 1, 2005 but before July
23 1, 2011. The changes made by Public Act 94-1057 shall not
24 require the System to refund any payments received before July
25 31, 2006 (the effective date of Public Act 94-1057).
26     When assessing payment for any amount due under subsection

 

 

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1 (f), the System shall exclude salary increases paid to teachers
2 under contracts or collective bargaining agreements entered
3 into, amended, or renewed before June 1, 2005.
4     When assessing payment for any amount due under subsection
5 (f), the System shall exclude salary increases paid to a
6 teacher at a time when the teacher is 10 or more years from
7 retirement eligibility under Section 16-132 or 16-133.2.
8     When assessing payment for any amount due under subsection
9 (f), the System shall exclude salary increases resulting from
10 overload work, including summer school, when the school
11 district has certified to the System, and the System has
12 approved the certification, that (i) the overload work is for
13 the sole purpose of classroom instruction in excess of the
14 standard number of classes for a full-time teacher in a school
15 district during a school year and (ii) the salary increases are
16 equal to or less than the rate of pay for classroom instruction
17 computed on the teacher's current salary and work schedule.
18     When assessing payment for any amount due under subsection
19 (f), the System shall exclude a salary increase resulting from
20 a promotion (i) for which the employee is required to hold a
21 certificate or supervisory endorsement issued by the State
22 Teacher Certification Board that is a different certification
23 or supervisory endorsement than is required for the teacher's
24 previous position and (ii) to a position that has existed and
25 been filled by a member for no less than one complete academic
26 year and the salary increase from the promotion is an increase

 

 

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1 that results in an amount no greater than the lesser of the
2 average salary paid for other similar positions in the district
3 requiring the same certification or the amount stipulated in
4 the collective bargaining agreement for a similar position
5 requiring the same certification.
6     When assessing payment for any amount due under subsection
7 (f), the System shall exclude any payment to the teacher from
8 the State of Illinois or the State Board of Education over
9 which the employer does not have discretion or which is paid to
10 a mentor teacher or principal from funds provided to the
11 employer by the State Board of Education for the purpose of
12 mentoring a new teacher or principal, notwithstanding that the
13 payment is included in the computation of final average salary.
14     (h) When assessing payment for any amount due under
15 subsection (f), the System shall exclude any salary increase
16 described in subsection (g) of this Section given on or after
17 July 1, 2011 but before July 1, 2014 under a contract or
18 collective bargaining agreement entered into, amended, or
19 renewed on or after June 1, 2005 but before July 1, 2011.
20 Notwithstanding any other provision of this Section, any
21 payments made or salary increases given after June 30, 2014
22 shall be used in assessing payment for any amount due under
23 subsection (f) of this Section.
24     (i) The System shall prepare a report and file copies of
25 the report with the Governor and the General Assembly by
26 January 1, 2007 that contains all of the following information:

 

 

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1         (1) The number of recalculations required by the
2     changes made to this Section by Public Act 94-1057 for each
3     employer.
4         (2) The dollar amount by which each employer's
5     contribution to the System was changed due to
6     recalculations required by Public Act 94-1057.
7         (3) The total amount the System received from each
8     employer as a result of the changes made to this Section by
9     Public Act 94-4.
10         (4) The increase in the required State contribution
11     resulting from the changes made to this Section by Public
12     Act 94-1057.
13 (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057,
14 eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07;
15 95-950, eff. 8-29-08.)
 
16     Section 25. The School Code is amended by changing Sections
17 1A-8, 1C-2, 2-3.25c, 2-3.25d, 2-3.53a, 3-7, 10-17a, 10-20.20,
18 10-22.45, 14-13.01, 18-8.05, 19-3, 21-29, 21A-5, 21A-10,
19 21A-15, 21A-20, 21A-25, 21A-30, 23-3, 23-6, 24-12, 24A-3,
20 24A-4, 24A-5, 24A-6, and 24A-8, by adding Sections 2-3.25d-5,
21 2-3.53b, 2-3.64b, 2-3.148, 2-3.149, 2-3.150, 2-3.151, 2-3.152,
22 3-6.5, 10-16.10, 10-17b, 10-17c, 10-17d, 10-20.46, 17-2.11c,
23 21A-3, 23-5.5, 34-18.37, 34-18.38, 34-18.39, 34-18.40, and
24 34-18.41, and by renumbering and changing Section 10-20.41 as
25 added by Public Act 95-707 as follows:
 

 

 

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

 

 

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

 

 

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1     No school district shall be certified by the State Board of
2 Education to be in financial difficulty by reason of any of the
3 above circumstances (i) if arising solely as a result of the
4 failure of the county to make any distribution of property tax
5 money due the district at the time such distribution is due;
6 (ii) if arising solely as a result of the failure of the
7 Comptroller to disburse reimbursements in accordance with
8 Sections 14-7.02, 14-7.02b, 14-7.03, 14-13.01, 18-3, 18-11,
9 18-4.3, and 29-5 for receipt by the school district no later
10 than June 30th of each year; or (iii) if the district clearly
11 demonstrates to the satisfaction of the State Board of
12 Education at the time of its determination that such condition
13 no longer exists. If the State Board of Education certifies
14 that a district in a city with 500,000 inhabitants or more is
15 in financial difficulty, the State Board shall so notify the
16 Governor and the Mayor of the city in which the district is
17 located. The State Board of Education may require school
18 districts certified in financial difficulty, except those
19 districts subject to Article 34A, to develop, adopt and submit
20 a financial plan within 45 days after certification of
21 financial difficulty. The financial plan shall be developed
22 according to guidelines presented to the district by the State
23 Board of Education within 14 days of certification. Such
24 guidelines shall address the specific nature of each district's
25 financial difficulties. Any proposed budget of the district
26 shall be consistent with the financial plan submitted to and

 

 

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1 approved by the State Board of Education.
2     A district certified to be in financial difficulty, other
3 than a district subject to Article 34A, shall report to the
4 State Board of Education at such times and in such manner as
5 the State Board may direct, concerning the district's
6 compliance with each financial plan. The State Board may review
7 the district's operations, obtain budgetary data and financial
8 statements, require the district to produce reports, and have
9 access to any other information in the possession of the
10 district that it deems relevant. The State Board may issue
11 recommendations or directives within its powers to the district
12 to assist in compliance with the financial plan. The district
13 shall produce such budgetary data, financial statements,
14 reports and other information and comply with such directives.
15 If the State Board of Education determines that a district has
16 failed to comply with its financial plan, the State Board of
17 Education may rescind approval of the plan and appoint a
18 Financial Oversight Panel for the district as provided in
19 Section 1B-4. This action shall be taken only after the
20 district has been given notice and an opportunity to appear
21 before the State Board of Education to discuss its failure to
22 comply with its financial plan.
23     No bonds, notes, teachers orders, tax anticipation
24 warrants or other evidences of indebtedness shall be issued or
25 sold by a school district or be legally binding upon or
26 enforceable against a local board of education of a district

 

 

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1 certified to be in financial difficulty unless and until the
2 financial plan required under this Section has been approved by
3 the State Board of Education.
4     Any financial watch list distributed by the State Board of
5 Education pursuant to this Section shall designate those school
6 districts on the watch list that would not otherwise be on the
7 watch list were it not for the inability or refusal of the
8 State of Illinois to make timely disbursements of any payments
9 due school districts or to fully reimburse school districts for
10 mandated categorical programs pursuant to reimbursement
11 formulas provided in this School Code.
12 (Source: P.A. 94-234, eff. 7-1-06.)
 
13     (105 ILCS 5/1C-2)
14     Sec. 1C-2. Block grants.
15     (a) For fiscal year 1999, and each fiscal year thereafter,
16 the State Board of Education shall award to school districts
17 block grants as described in subsection (c). The State Board of
18 Education may adopt rules and regulations necessary to
19 implement this Section. In accordance with Section 2-3.32, all
20 state block grants are subject to an audit. Therefore, block
21 grant receipts and block grant expenditures shall be recorded
22 to the appropriate fund code.
23     (b) (Blank).
24     (c) An Early Childhood Education Block Grant shall be
25 created by combining the following programs: Preschool

 

 

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1 Education, Parental Training and Prevention Initiative. These
2 funds shall be distributed to school districts and other
3 entities on a competitive basis. Eleven percent of this grant
4 shall be used to fund programs for children ages 0-3.
5     (d) The General Assembly shall appropriate or transfer
6 amounts to the Early Childhood Education Block Grant for the
7 programs specified in subsection (c) of this Section as
8 follows: the Fiscal Year 2009 appropriation plus (1) at least
9 the Fiscal Year 2009 appropriation plus an additional
10 $45,000,000 for Fiscal Year 2010; (2) at least the previous
11 fiscal year appropriation plus at least an additional
12 $90,000,000 for Fiscal Year 2011; (3) at least the previous
13 fiscal year appropriation plus at least an additional
14 $135,000,000 for Fiscal Year 2012; and (4) at least the
15 previous fiscal year appropriation plus at least an additional
16 $180,000,000 for Fiscal Year 2013. Thereafter, the amount
17 appropriated or transferred to the Early Childhood Education
18 Block Grant each fiscal year shall be the amount from the
19 previous fiscal year, increased by at least the percentage
20 increase, if any, in the Employment Cost Index for Elementary
21 and Secondary Schools, published by the U.S. Bureau of Labor
22 Statistics, for the then most recent, completed calendar year.
23 The Early Childhood Education Block Grant shall not be subject
24 to sweeps, administrative charges, or charge-backs, including,
25 but not limited to, those authorized under Section 8h of the
26 State Finance Act or any other fiscal or budgetary maneuver

 

 

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1 that would in any way transfer any funds from the Early
2 Childhood Education Block Grant into any other fund of this
3 State.
4 (Source: P.A. 95-793, eff. 1-1-09.)
 
5     (105 ILCS 5/2-3.25c)  (from Ch. 122, par. 2-3.25c)
6     Sec. 2-3.25c. Financial and other awards Rewards and
7 acknowledgements.
8     (a) The State Board of Education shall implement a system
9 of rewards for school districts, and the schools themselves,
10 whose students and schools consistently meet adequate yearly
11 progress criteria for 2 or more consecutive years and a system
12 to acknowledge schools and districts that meet adequate yearly
13 progress criteria in a given year as specified in Section
14 2-3.25d of this Code.
15     (b) Financial awards shall be provided to the schools that
16 the State Superintendent of Education determines have
17 demonstrated the greatest improvement in achieving the
18 education goals of improved student achievement and improved
19 school completion, subject to appropriation by the General
20 Assembly and any limitation set by the State Superintendent on
21 the total amount that may be awarded to a school or school
22 district; provided that such financial awards must not be used
23 to enhance the compensation of staff in school districts having
24 a population not exceeding 500,000.
25     (c) The State Superintendent of Education may present

 

 

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1 proclamations or certificates to schools and school systems
2 determined to have met or exceeded the State's education goals
3 under Section 2-3.64 of this Code.
4     (d) The Education Financial Award System Fund is created as
5 a special fund in the State treasury. All money in the Fund
6 shall be used, subject to appropriation, by the State Board of
7 Education for the purpose of funding financial awards under
8 this Section. The Fund shall consist of all moneys appropriated
9 to the fund by the General Assembly and any gifts, grants,
10 donations, and other moneys received by the State Board of
11 Education for implementation of the awards system.
12     Any unexpended or unencumbered moneys remaining in the
13 Education Financial Award System Fund at the end of a fiscal
14 year shall remain in the Fund and shall not revert or be
15 credited or transferred to the General Revenue Fund nor be
16 transferred to any other fund. Any interest derived from the
17 deposit and investment of moneys in the Education Financial
18 Award System Fund shall remain in the Fund and shall not be
19 credited to the General Revenue Fund. The Education Financial
20 Award System Fund must be appropriated and expended only for
21 the awards system. The awards are subject to audit requirements
22 established by the State Board of Education.
23     (e) If a school or school district meets adequate yearly
24 progress criteria for 2 consecutive school years, that school
25 or district shall be exempt from review and approval of its
26 improvement plan for the next 2 succeeding school years.

 

 

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1 (Source: P.A. 93-470, eff. 8-8-03.)
 
2     (105 ILCS 5/2-3.25d)  (from Ch. 122, par. 2-3.25d)
3     Sec. 2-3.25d. Academic early warning and watch status.
4     (a) Beginning with the 2005-2006 school year, unless the
5 federal government formally disapproves of such policy through
6 the submission and review process for the Illinois
7 Accountability Workbook, those schools that do not meet
8 adequate yearly progress criteria for 2 consecutive annual
9 calculations in the same subgroup and in the same subject or in
10 their participation rate, attendance rate, or graduation rate
11 shall be placed on academic early warning status for the next
12 school year. Schools on academic early warning status that do
13 not meet adequate yearly progress criteria for a third annual
14 calculation in the same subgroup and in the same subject or in
15 their participation rate, attendance rate, or graduation rate
16 shall remain on academic early warning status. Schools on
17 academic early warning status that do not meet adequate yearly
18 progress criteria for a fourth annual calculation in the same
19 subgroup and in the same subject or in their participation
20 rate, attendance rate, or graduation rate shall be placed on
21 initial academic watch status. Schools on academic watch status
22 that do not meet adequate yearly progress criteria for a fifth
23 or subsequent annual calculation in the same subgroup and in
24 the same subject or in their participation rate, attendance
25 rate, or graduation rate shall remain on academic watch status.

 

 

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1 Schools on academic early warning or academic watch status that
2 meet adequate yearly progress criteria for one annual
3 calculation shall be considered as having met expectations and
4 shall be removed from any status designation.
5     The school district of a school placed on either academic
6 early warning status or academic watch status may appeal the
7 status to the State Board of Education in accordance with
8 Section 2-3.25m of this Code.
9     A school district that has one or more schools on academic
10 early warning or academic watch status shall prepare a revised
11 School Improvement Plan or amendments thereto setting forth the
12 district's expectations for removing each school from academic
13 early warning or academic watch status and for improving
14 student performance in the affected school or schools.
15 Districts operating under Article 34 of this Code may prepare
16 the School Improvement Plan required under Section 34-2.4 of
17 this Code.
18     The revised School Improvement Plan for a school that is
19 initially placed on academic early warning status or that
20 remains on academic early warning status after a third annual
21 calculation must be approved by the school board (and by the
22 school's local school council in a district operating under
23 Article 34 of this Code, unless the school is on probation
24 pursuant to subsection (c) of Section 34-8.3 of this Code).
25     The revised School Improvement Plan for a school that is
26 initially placed on academic watch status after a fourth annual

 

 

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1 calculation must be approved by the school board (and by the
2 school's local school council in a district operating under
3 Article 34 of this Code, unless the school is on probation
4 pursuant to subsection (c) of Section 34-8.3 of this Code).
5     The revised School Improvement Plan for a school that
6 remains on academic watch status after a fifth annual
7 calculation must be approved by the school board (and by the
8 school's local school council in a district operating under
9 Article 34 of this Code, unless the school is on probation
10 pursuant to subsection (c) of Section 34-8.3 of this Code). In
11 addition, the district must develop a school restructuring plan
12 for the school that must be approved by the school board (and
13 by the school's local school council in a district operating
14 under Article 34 of this Code).
15     A school on academic watch status that does not meet
16 adequate yearly progress criteria for a sixth annual
17 calculation shall implement its approved school restructuring
18 plan beginning with the next school year, subject to the State
19 interventions specified in Section 2-3.25f of this Code.
20     (b) Beginning with the 2005-2006 school year, unless the
21 federal government formally disapproves of such policy through
22 the submission and review process for the Illinois
23 Accountability Workbook, those school districts that do not
24 meet adequate yearly progress criteria for 2 consecutive annual
25 calculations in the same subgroup and in the same subject or in
26 their participation rate, attendance rate, or graduation rate

 

 

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1 shall be placed on academic early warning status for the next
2 school year. Districts on academic early warning status that do
3 not meet adequate yearly progress criteria for a third annual
4 calculation in the same subgroup and in the same subject or in
5 their participation rate, attendance rate, or graduation rate
6 shall remain on academic early warning status. Districts on
7 academic early warning status that do not meet adequate yearly
8 progress criteria for a fourth annual calculation in the same
9 subgroup and in the same subject or in their participation
10 rate, attendance rate, or graduation rate shall be placed on
11 initial academic watch status. Districts on academic watch
12 status that do not meet adequate yearly progress criteria for a
13 fifth or subsequent annual calculation in the same subgroup and
14 in the same subject or in their participation rate, attendance
15 rate, or graduation rate shall remain on academic watch status.
16 Districts on academic early warning or academic watch status
17 that meet adequate yearly progress criteria for one annual
18 calculation shall be considered as having met expectations and
19 shall be removed from any status designation.
20     A district placed on either academic early warning status
21 or academic watch status may appeal the status to the State
22 Board of Education in accordance with Section 2-3.25m of this
23 Code.
24     Districts on academic early warning or academic watch
25 status shall prepare a District Improvement Plan or amendments
26 thereto setting forth the district's expectations for removing

 

 

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1 the district from academic early warning or academic watch
2 status and for improving student performance in the district.
3     All District Improvement Plans must be approved by the
4 school board.
5     (c) All new and revised School and District Improvement
6 Plans shall be developed in collaboration with parents, staff
7 in the affected school or school district and their exclusive
8 bargaining representatives, if any, and outside experts. All
9 revised School and District Improvement Plans shall be
10 developed, submitted, and monitored pursuant to rules adopted
11 by the State Board of Education. The revised Improvement Plan
12 shall address measurable outcomes for improving student
13 performance so that such performance meets adequate yearly
14 progress criteria as specified by the State Board of Education
15 and shall include a staff professional development plan
16 developed at least in cooperation with staff or, if applicable,
17 the exclusive bargaining representatives of the staff. All
18 school districts required to revise a School Improvement Plan
19 in accordance with this Section shall establish a peer review
20 process for the evaluation of School Improvement Plans.
21     (d) All federal requirements apply to schools and school
22 districts utilizing federal funds under Title I, Part A of the
23 federal Elementary and Secondary Education Act of 1965.
24     (e) The State Board of Education, from any moneys it may
25 have available for this purpose, must implement and administer
26 a grant program that provides 2-year grants to school districts

 

 

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1 on the academic watch list and other school districts that have
2 the lowest achieving students, as determined by the State Board
3 of Education, to be used to improve student achievement. In
4 order to receive a grant under this program, a school district
5 must establish an accountability program. The accountability
6 program must involve the use of statewide testing standards and
7 local evaluation measures. A grant shall be automatically
8 renewed when achievement goals are met. The Board may adopt any
9 rules necessary to implement and administer this grant program.
10     (f) In addition to any moneys available under subsection
11 (e) of this Section, a school district required to maintain
12 School and District Improvement Plans under this Section,
13 including a school district organized under Article 34 of this
14 Code, shall annually receive from the State an amount equal to
15 $150 times the number of full-time certified teachers and
16 administrators it employs for developing and implementing its
17 mandatory School and District Improvement Plans, including its
18 staff professional development plan.
19 (Source: P.A. 93-470, eff. 8-8-03; 93-890, eff. 8-9-04; 94-666,
20 eff. 8-23-05; 94-875, eff. 7-1-06.)
 
21     (105 ILCS 5/2-3.25d-5 new)
22     Sec. 2-3.25d-5. Educational improvement plan.
23     (a) Except for school districts required to develop School
24 and District Improvement Plans under Section 2-3.25d of this
25 Code, each school district shall develop, in compliance with

 

 

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1 rules promulgated by the State Board of Education, an
2 educational improvement plan that must include (i) measures for
3 improving school district, school building, and individual
4 student performance and (ii) a staff professional development
5 plan developed at least in cooperation with staff or, if
6 applicable, the exclusive bargaining representatives of the
7 staff. The district shall develop the educational improvement
8 plan in collaboration with parents, staff, and the staff's
9 exclusive bargaining representatives, if any.
 
10     (105 ILCS 5/2-3.53a)
11     Sec. 2-3.53a. New principal mentoring program.
12     (a) In this Section, "new principal" means a principal of a
13 public school who has less than 2 full school years of
14 experience as a principal in a public school in this State.
15 Beginning on July 1, 2007, and subject to an annual
16 appropriation by the General Assembly, to establish a new
17 principal mentoring program for new principals. Any individual
18 who is hired as a principal in the State of Illinois on or
19 after July 1, 2007 shall participate in a new principal
20 mentoring program for the duration of his or her first year as
21 a principal and must complete the program in accordance with
22 the requirements established by the State Board of Education by
23 rule or, for a school district created by Article 34 of this
24 Code, in accordance with the provisions of Section 34-18.27 of
25 this Code. School districts created by Article 34 are not

 

 

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1 subject to the requirements of subsection (b), (c), (d), (e),
2 (f), or (g) of this Section. The new principal mentoring
3 program shall match an experienced principal who meets the
4 requirements of subsection (b) of this Section with each new
5 principal in his or her first year in that position in order to
6 assist the new principal in the development of his or her
7 professional growth and to provide guidance during the new
8 principal's first year of service.
9     (b) Any individual who has been a principal in Illinois for
10 3 or more years and who has demonstrated success as an
11 instructional leader, as determined by the State Board by rule,
12 is eligible to apply to be a mentor under a new principal
13 mentoring program. Mentors shall complete mentoring training
14 by entities approved by the State Board and meet any other
15 requirements set forth by the State Board and by the school
16 district employing the mentor.
17     (c) The State Board shall certify an entity or entities
18 approved to provide training of mentors.
19     (d) A mentor shall be assigned to a new principal based on
20 (i) similarity of grade level or type of school, (ii) learning
21 needs of the new principal, and (iii) geographical proximity of
22 the mentor to the new principal. The principal, in
23 collaboration with the mentor, shall identify areas for
24 improvement of the new principal's professional growth,
25 including, but not limited to, each of the following:
26         (1) Analyzing data and applying it to practice.

 

 

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1         (2) Aligning professional development and
2     instructional programs.
3         (3) Building a professional learning community.
4         (4) Observing classroom practices and providing
5     feedback.
6         (5) Facilitating effective meetings.
7         (6) Developing distributive leadership practices.
8         (7) Facilitating organizational change.
9 The mentor shall not be required to provide an evaluation of
10 the new principal on the basis of the mentoring relationship.
11     (e) On or after January 1, 2008 and on or after January 1
12 of each year thereafter, each mentor and each new principal
13 shall complete a survey of progress on a form developed by
14 their respective school districts. On or before July 1, 2008
15 and on or after July 1 of each year thereafter, the State Board
16 shall facilitate a review and evaluate the mentoring training
17 program in collaboration with the approved providers. Each new
18 principal and his or her mentor must complete a verification
19 form developed by the State Board in order to certify their
20 completion of a new principal mentoring program.
21     (f) The requirements of this Section do not apply to any
22 individual who has previously served as an assistant principal
23 in Illinois acting under an administrative certificate for 5 or
24 more years and who is hired, on or after July 1, 2007, as a
25 principal by the school district in which the individual last
26 served as an assistant principal, although such an individual

 

 

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1 may choose to participate in this program or shall be required
2 to participate by the school district.
3     (f-5) A separate appropriation shall annually be made for
4 the purposes of this Section for each new principal, as defined
5 by this Section, for each of 2 school years for the purpose of
6 providing one or more of the following:
7         (1) Mentor principal compensation.
8         (2) Mentor principal training.
9         (3) Program administration, not to exceed 20% of the
10     total program cost.
11     The General Assembly shall annually appropriate $3,800,000
12 for the principal mentoring, leadership, and professional
13 development program.
14     (g) The State Board may adopt any rules necessary for the
15 implementation of this Section.
16 (Source: P.A. 94-1039, eff. 7-20-06.)
 
17     (105 ILCS 5/2-3.53b new)
18     Sec. 2-3.53b. New superintendent mentoring program.
19     (a) Beginning on July 1, 2009 and subject to an annual
20 appropriation by the General Assembly, to establish a new
21 superintendent mentoring program for new superintendents. Any
22 individual who begins serving as a superintendent in this State
23 on or after July 1, 2009 and has not previously served as a
24 school district superintendent in this State shall participate
25 in the new superintendent mentoring program for the duration of

 

 

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1 his or her first 2 school years as a superintendent and must
2 complete the program in accordance with the requirements
3 established by the State Board of Education by rule. The new
4 superintendent mentoring program shall match an experienced
5 superintendent who meets the requirements of subsection (b) of
6 this Section with each new superintendent in his or her first 2
7 school years in that position in order to assist the new
8 superintendent in the development of his or her professional
9 growth and to provide guidance during the new superintendent's
10 first 2 school years of service.
11     (b) Any individual who has actively served as a school
12 district superintendent in this State for 3 or more years and
13 who has demonstrated success as an instructional leader, as
14 determined by the State Board of Education by rule, is eligible
15 to apply to be a mentor under the new superintendent mentoring
16 program. Mentors shall complete mentoring training through a
17 provider selected by the State Board of Education and shall
18 meet any other requirements set forth by the State Board and by
19 the school district employing the mentor.
20     (c) Under the new superintendent mentoring program, a
21 provider selected by the State Board of Education shall assign
22 a mentor to a new superintendent based on (i) similarity of
23 grade level or type of school district, (ii) learning needs of
24 the new superintendent, and (iii) geographical proximity of the
25 mentor to the new superintendent. The new superintendent, in
26 collaboration with the mentor, shall identify areas for

 

 

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1 improvement of the new superintendent's professional growth,
2 including, but not limited to, each of the following:
3         (1) Analyzing data and applying it to practice.
4         (2) Aligning professional development and
5     instructional programs.
6         (3) Building a professional learning community.
7         (4) Effective school board relations.
8         (5) Facilitating effective meetings.
9         (6) Developing distributive leadership practices.
10         (7) Facilitating organizational change.
11     The mentor must not be required to provide an evaluation of
12 the new superintendent on the basis of the mentoring
13 relationship.
14     (d) From January 1, 2010 until May 15, 2010 and from
15 January 1 until May 15 each year thereafter, each mentor and
16 each new superintendent shall complete a survey of progress of
17 the new superintendent on a form developed by the school
18 district. On or before September 1, 2010 and on or before
19 September 1 of each year thereafter, the provider selected by
20 the State Board of Education shall submit a detailed annual
21 report to the State Board of how the appropriation for the new
22 superintendent mentoring program was spent, details on each
23 mentor-mentee relationship, and a qualitative evaluation of
24 the outcomes. The provider shall develop a verification form
25 that each new superintendent and his or her mentor must
26 complete and submit to the provider to certify completion of

 

 

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1 each year of the new superintendent mentoring program by July
2 15 immediately following the school year just completed.
3     (e) The requirements of this Section do not apply to any
4 individual who has previously served as an assistant
5 superintendent in a school district in this State acting under
6 an administrative certificate for 5 or more years and who, on
7 or after July 1, 2009, begins serving as a superintendent in
8 the school district where he or she had served as an assistant
9 superintendent immediately prior to being named
10 superintendent, although such an individual may choose to
11 participate in the new superintendent mentoring program or may
12 be required to participate by the school district. The
13 requirements of this Section do not apply to any superintendent
14 or chief executive officer of a school district organized under
15 Article 34 of this Code.
16     (f) The State Board may adopt any rules that are necessary
17 for the implementation of this Section.
 
18     (105 ILCS 5/2-3.64b new)
19     Sec. 2-3.64b. Performance measures.
20     (a) In this Section:
21     "Growth model assessment" means a statistical system for
22 educational outcome assessment that uses measures of student
23 learning to enable the estimation of teacher, school, and
24 school district statistical distributions and that conforms to
25 or is consistent with applicable State and federal laws and

 

 

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1 regulations to the extent practicable. The statistical system
2 shall use available and appropriate data as input to account
3 for differences in prior student attainment, such that the
4 impact that the teacher, school, and school district have on
5 the educational progress of students may be estimated on a
6 student attainment constant basis. The impact that a teacher,
7 school, or school district has on the progress or lack of
8 progress in educational advancement or learning of a student is
9 referred to in this Section as the "effect" of the teacher,
10 school, or school district on the educational progress of
11 students.
12     "School" includes a charter school.
13     "Teacher" includes a teacher in a charter school.
14     (b) No later than July 1, 2013, the State Board of
15 Education shall establish a statewide growth model assessment
16 system to measure the annual increase or growth in each
17 student's performance relative to a standard year of academic
18 growth on the assessments provided for in Section 2-3.64 of
19 this Code and other performance indicators that the State Board
20 may identify. In developing such a system, the State Board
21 shall coordinate with school districts, including a school
22 district organized under Article 34 of this Code, that have or
23 that are in the process of developing local growth model
24 assessment systems.
25     (c) The growth model assessment system shall reliably
26 estimate school district, school, and teacher effects on

 

 

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1 students' academic achievement over time, control for student
2 characteristics, and use an independently verifiable
3 statistical methodology to produce such estimates.
4     (d) A specific teacher's effect on the educational progress
5 of students may not be used as a part of a formal personnel
6 evaluation until data from 3 complete academic years are
7 obtained and unless the district and the exclusive bargaining
8 representative of the district's teachers, if any, have agreed
9 to its use as part of an alternative evaluation plan under
10 Section 24A-5 or 24A-8 of this Code. Teacher effect data must
11 not be retained for use in evaluations for more than the most
12 recent 5 years. A student must have been present for 150 days
13 of classroom instruction per year or 75 days of classroom
14 instruction per semester before that student's record is
15 attributable to a specific teacher. Records from any student
16 who is eligible for special education services under federal
17 law must not be used as part of the growth model assessment.
18     (e) The State Board of Education shall provide growth model
19 assessment data to each school district as soon as practicable
20 after receipt of such data, but in no case later than December
21 1. The aggregate growth model assessment estimates for each
22 school district and school shall also be included in each
23 school district's report card under Section 10-17a of this
24 Code.
25     (f) All identifiable individual student performance data,
26 information, and reports shall be deemed confidential, shall

 

 

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1 not be a public record, and shall not be disclosed; provided
2 that such information shall be made available only to a
3 student's classroom teacher and other appropriate educational
4 personnel and to the student's parent or guardian.
5     (g) All identifiable teacher effects data, information,
6 and reports shall be deemed confidential, shall not be a public
7 record, and shall not be disclosed without the teacher's
8 express written consent, except to appropriate personnel in the
9 district in which the teacher is employed.
10     (h) The data, information, and reports referred to in
11 subsection (f) of this Section shall not constitute a school
12 student record under Section 2 of the Illinois School Student
13 Records Act and shall otherwise be exempt from disclosure under
14 Section 6 of the Illinois School Student Records Act. The data,
15 information, and reports referred to in subsections (f) and (g)
16 of this Section shall not constitute a public record under
17 Section 2 of the Freedom of Information Act and shall otherwise
18 be exempt from disclosure under subdivisions (a) and (b) of
19 subsection (1) of Section 7 of the Freedom of Information Act.
20 Nothing in this Section prevents the State Board of Education
21 from releasing or otherwise disclosing such data, information,
22 and reports to any person associated with a recognized
23 institution of higher education for the purpose of research,
24 analysis, or statistical reporting or planning, provided that
25 no student or teacher can be identified from the data,
26 information, or report released and the person to whom the

 

 

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1 data, information, or report is released signs an affidavit
2 agreeing to comply with all applicable statutes pertaining to
3 confidential student and personnel records.
4     (i) As provided in Sections 2-3.25d, 2-3.25f, and 2-3.25h
5 of this Code, the State Board of Education shall establish a
6 coherent and sustained system of assistance and support for
7 schools not meeting identified levels of achievement or not
8 showing specified levels of progress, as determined by the
9 State Board based upon the schools' growth model assessment
10 results. As provided in Section 2-3.25f of this Code, the State
11 Board of Education shall specify appropriate levels of
12 assistance and intervention for schools that receive an
13 unacceptable rating on student performance for the absolute
14 student achievement standard or on progress on improved student
15 achievement.
16     (j) The State Board of Education, from any moneys it may
17 have available for the purposes set forth in this Section, must
18 implement and administer a grant program that provides 2-year
19 grants to school districts, including a school district
20 organized under Article 34 of this Code, as determined by the
21 State Board of Education, to be used to develop local growth
22 model assessment systems. The Board may adopt any rules
23 necessary to implement and administer this grant program.
 
24     (105 ILCS 5/2-3.148 new)
25     Sec. 2-3.148. The Digital Learning Technology Grant

 

 

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1 Program.
2     (a) As used in this Section, unless the context otherwise
3 requires, "information technology education" means education
4 in the development, design, use, maintenance, repair, and
5 application of information technology systems or equipment,
6 including, but not limited to, computers, the Internet,
7 telecommunications devices and networks, and multi-media
8 techniques.
9     (b) There is created the Digital Learning Technology Grant
10 Program to provide money to school districts and charter
11 schools to use in integrating information technology and
12 scientific equipment as tools to measurably improve teaching
13 and learning in grades 9 through 12 in this State's public
14 schools. The State Board of Education shall administer the
15 grant program through the acceptance, review, and
16 recommendation of applications submitted pursuant to this
17 Section.
18     (c) Grants awarded through the grant program created under
19 this Section shall continue for 4 fiscal years and may be
20 renewed as provided by rule of the State Board of Education.
21 Grants awarded through the program shall be paid out of any
22 money appropriated or credited to the Digital Learning
23 Technology Grant Fund. A school district or charter school
24 shall use any moneys obtained through the grant program to
25 integrate information technology education into the 9th grade
26 through 12th grade curriculum. In the case of a school

 

 

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1 district, such integration shall be accomplished in one or more
2 public schools in the district. The school district or charter
3 school may contract with one or more private entities for
4 assistance in integrating information technology education
5 into the curriculum. In addition, school districts and charter
6 schools are encouraged to partner with businesses for
7 assistance in integrating information technology education
8 into the curriculum.
9     (d) The State Board of Education shall adopt rules for the
10 administration and implementation of the grant program created
11 under this Section. The first grants shall be awarded through
12 the program for the 2009-2010 school year. Grants shall be
13 awarded annually thereafter.
14     (e) Any school district or charter school that seeks to
15 participate in the grant program created under this Section
16 shall submit an application to the State Board of Education in
17 the form and according to the deadlines established by rule of
18 the State Board of Education. The application shall include the
19 following information:
20         (1) if the applicant is a school district, the names of
21     the schools that will receive the benefits of the grant;
22         (2) the current level of information technology
23     education integration at the recipient schools;
24         (3) the school district's or charter school's plan for
25     integrating information technology education into the 9th
26     grade through 12th grade curriculum, including any

 

 

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1     specific method or program to be used, and any entities
2     with whom the school district or charter school plans to
3     contract or cooperate in achieving the integration;
4         (4) the specific, measurable goals to be achieved and
5     the actual deliverables to be produced through the
6     integration of information technology education into the
7     curriculum, a deadline for achieving those goals, and a
8     proposed method of measuring whether the goals were
9     achieved;
10         (5) any businesses with which the school district or
11     charter school has partnered to improve the availability
12     and integration of information technology education within
13     the curriculum; and
14         (6) any other information that may be specified by rule
15     of the State Board of Education.
16     (f) In recommending and awarding grants through the
17 program, the State Board of Education shall consider the
18 following criteria:
19         (1) the degree to which information technology
20     education is already integrated into the curriculum of the
21     applying school district or charter school to ensure that
22     those school districts and charter schools with the least
23     degree of integration receive the grants first;
24         (2) the degree to which the applicant's proposed plan
25     for using the grant moneys will result in integration of
26     information technology tools and scientific equipment in a

 

 

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1     manner that measurably improves teaching and learning;
2         (3) the validity, clarity, and measurability of the
3     goals established by the applicant and the validity of the
4     proposed methods for measuring achievement of the goals;
5         (4) the accountability system of specific measures and
6     deliverables to determine a baseline and annually assess
7     improvements in teaching and learning;
8         (5) any other financial resources available to the
9     applicant for integrating information technology education
10     into the curriculum;
11         (6) the degree to which the applicant is cooperating or
12     partnering with businesses to improve the availability and
13     integration of information technology education in the
14     curriculum; the State Board of Education shall apply this
15     criteria with the goal of encouraging such partnerships;
16         (7) the strength and capacity of the applicant to
17     collaborate with the science, technology, engineering and
18     mathematics education center network under Section 4.5 of
19     the Illinois Mathematics and Science Academy Law and to
20     provide open source networking with other public schools in
21     this State; and
22         (8) any other criteria established by rule of the State
23     Board of Education to ensure that grants are awarded to
24     school districts and charter schools that demonstrate the
25     greatest need and the most valid, effective plan for
26     integrating information technology education into the

 

 

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1     curriculum.
2     (g) In awarding grants through the grant program, the State
3 Board of Education shall ensure, to the extent possible, that
4 the grants are awarded to school districts and charter schools
5 in all areas of this State.
6     (h) Nothing in this Section shall be construed to limit or
7 otherwise affect any school district's ability to enter into an
8 agreement with or receive funds from any private entity.
9     (i) Each school district and charter school that receives a
10 grant through the grant program created under this Section
11 shall, by August 1 of the school year for which the grant was
12 awarded, submit to the State Board of Education a report
13 specifying the following information:
14         (1) the manner in which the grant moneys were used;
15         (2) the progress made toward achieving the goals
16     specified in the grant recipient's application;
17         (3) any additional entities and businesses with whom
18     the grant recipient has contracted or partnered with the
19     goal of achieving greater integration of information
20     technology education in the 9th grade through 12th grade
21     curriculum;
22         (4) the recipient school district's and charter
23     school's plan for continuing the integration of
24     information technology education into the curriculum,
25     regardless of whether the grant is renewed; and
26         (5) any other information specified by rule of the

 

 

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1     State Board of Education.
2     (j) Notwithstanding subsection (i) of this Section, a
3 recipient school need not submit a report for any academic year
4 in which no grants are made through the grant program.
5     (k) The Digital Learning Technology Grant Fund is created
6 as a special fund in the State treasury. All money in the Fund
7 shall be used, subject to appropriation, by the State Board of
8 Education for the purpose of funding grants under this Section.
9     (l) The State Board of Education may solicit and accept
10 money in the form of gifts, contributions, and grants to be
11 deposited into the Digital Learning Technology Grant Fund. The
12 acceptance of federal grants for purposes of this Section does
13 not commit State funds nor place an obligation upon the General
14 Assembly to continue the purposes for which the federal funds
15 are made available.
 
16     (105 ILCS 5/2-3.149 new)
17     Sec. 2-3.149. Best practices clearinghouse.
18     (a) Beginning July 1, 2010 and subject to appropriation,
19 the State Board of Education shall establish an online
20 clearinghouse of information relating to best practices of
21 campuses and school districts regarding instruction, public
22 school finance, resource allocation, and business practices.
23 To the extent practicable, the State Board of Education shall
24 ensure that information provided through the online
25 clearinghouse is specific, actionable information relating to

 

 

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1 the best practices of high-performing and highly efficient
2 school districts rather than general guidelines relating to
3 school district operation. The information must be accessible
4 by school districts and interested members of the public.
5     (b) The State Board of Education shall solicit and collect
6 from exemplary or recognized school districts, charter
7 schools, and other institutions determined by the State Board
8 of Education examples of best practices relating to
9 instruction, public school finance, resource allocation, and
10 business practices, including best practices relating to
11 curriculum, scope and sequence, compensation and incentive
12 systems, bilingual education and special language programs,
13 compensatory education programs, and the effective use of
14 instructional technology, including online courses.
15     (c) The State Board of Education may contract for the
16 services of one or more third-party contractors to develop,
17 implement, and maintain a system of collecting and evaluating
18 the best practices of campuses and school districts as provided
19 by this Section. In addition to any other considerations
20 required by law, the State Board of Education must consider an
21 applicant's demonstrated competence and qualifications in
22 analyzing school district practices in awarding a contract
23 under this subsection (c).
24     (d) The State Board of Education may purchase from
25 available funds curriculum and other instructional tools
26 identified under this Section to provide for use by school

 

 

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1 districts.
 
2     (105 ILCS 5/2-3.150 new)
3     Sec. 2-3.150. The Science, Technology, Engineering, and
4 Mathematics Education Center Grant Program.
5     (a) As used in this Section, unless the context otherwise
6 requires:
7     "Grant program" means the science, technology,
8 engineering, and mathematics education center grant program
9 created in this Section.
10     "Science, technology, engineering, and mathematics
11 education" or "STEM" means learning experiences that integrate
12 innovative curricular, instructional, and assessment
13 strategies and materials, laboratory and mentorship
14 experiences, and authentic inquiry-based and problem centered
15 instruction to stimulate learning in the areas of science,
16 technology, engineering, and mathematics.
17     "Science, technology, engineering, and mathematics
18 education innovation center" means a center operated by a
19 school district, a charter school, the Illinois Mathematics and
20 Science Academy, or a joint collaborative partnership that
21 provides STEM teaching and learning experiences, materials,
22 laboratory and mentorship experiences, and educational
23 seminars, institutes or workshops for students and teachers.
24     (b) The Illinois Mathematics and Science Academy, in
25 consultation and partnership with the State Board of Education,

 

 

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1 the Board of Higher Education, the business community, the
2 entrepreneurial technology community, and professionals,
3 including teachers, in the field of science, technology,
4 engineering, and mathematics shall create a strategic plan for
5 developing a whole systems approach to redesigning
6 prekindergarten through grade 12 STEM education in this State,
7 including, but not limited to, designing and creating
8 integrative teaching and learning networks among science,
9 technology, engineering, and mathematics innovation education
10 centers, university and corporate research facilities, and
11 established STEM laboratories, businesses, and the Illinois
12 Mathematics and Science Academy.
13     (c) At a minimum, the plan shall provide direction for
14 program design and development, including the following:
15         (1) continuous generation and sharing of curricular,
16     instructional, assessment, and program development
17     materials and information about STEM teaching and learning
18     throughout the network;
19         (2) identification of curricular, instructional, and
20     assessment goals that reflect the research in cognition and
21     the development of creativity in STEM fields and the
22     systemic changes in STEM education, so as to be consistent
23     with inquiry-based and problem-centered instruction in
24     science, technology, engineering, and mathematics. Such
25     goals shall also reflect current frameworks, standards,
26     and guidelines, such as those defined by the National

 

 

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1     Research Council (National Academy of Science), the
2     American Association for the Advancement of Science, the
3     National Council of Teachers of Mathematics, the National
4     Science Teachers Association, and professional
5     associations in STEM fields;
6         (3) identification of essential teacher competencies
7     and a comprehensive plan for recruiting, mentoring, and
8     retaining STEM teachers, especially those in
9     under-resourced schools and school districts; creation of
10     a community of practice among STEM center educators and
11     other teachers of science, technology, engineering, and
12     mathematics as part of a network of promising practices in
13     teaching; and the establishment of recruitment, mentoring,
14     and retention plans for Golden Apple teachers in STEM
15     fields and Illinois STEM teachers who have received
16     national board certification and are also part of the STEM
17     innovation network;
18         (4) a statement of desired competencies for STEM
19     learning by students;
20         (5) a description of recommended courses of action to
21     improve educational experiences, programs, practices, and
22     service;
23         (6) the improvement of access and availability of STEM
24     courses, especially for rural school districts and
25     particularly to those groups which are traditionally
26     underrepresented through the Illinois Virtual High School;

 

 

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1     the plan shall include goals for using telecommunications
2     facilities as recommended by a telecommunications advisory
3     commission;
4         (7) expectations and guidelines for designing and
5     developing a dynamic, creative, and engaged teaching
6     network;
7         (8) a description of the laboratory and incubator model
8     for the STEM centers;
9         (9) support for innovation and entrepreneurship in
10     curriculum, instruction, assessment, and professional
11     development; and
12         (10) cost estimates.
13     (d) The plan shall provide a framework that enables the
14 teachers, school districts, and institutions of higher
15 education to operate as an integrated system. The plan shall
16 provide innovative mechanisms and incentives to the following:
17         (1) educational providers, as well as professional
18     associations, business and university partners, and
19     educational receivers (students and teachers) at the
20     prekindergarten through grade 12 and postsecondary levels
21     to design and implement innovative curricula, including
22     experiences, mentorships, institutes, and seminars and to
23     develop new materials and activities for these;
24         (2) course providers and receivers for leveraging
25     distance learning technologies through the Illinois
26     Virtual High School and applying distance learning

 

 

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1     instructional design techniques, taking into consideration
2     the work of a telecommunications advisory commission;
3         (3) prekindergarten through grade 12 teachers to
4     encourage them to take graduate STEM courses and degree
5     programs; such incentives may include a tuition matching
6     program;
7         (4) appropriate State agencies, federal agencies,
8     professional organizations, public television stations,
9     and businesses and industries to involve them in the
10     development of the strategic plan; and
11         (5) businesses, industries, and individuals for
12     volunteering their time and community resources.
13     (e) The plan shall provide a mechanism for incorporating
14 the cost for accomplishing these goals into the ongoing
15 operating budget beginning in 2010.
16     (f) There is created the Science and Technology Education
17 Center Grant Program to provide development and operating
18 moneys in the form of matching funds for existing or proposed
19 nonprofit STEM education centers. At a minimum, each STEM
20 center that receives a grant shall not only provide STEM
21 education activities to students enrolled in the school
22 district or charter school and materials and educational
23 workshops to teachers employed by the school district or
24 charter school, but also, as part of generative and innovative
25 teaching and learning network, shall share information with all
26 STEM centers, the Illinois Mathematics and Science Academy, and

 

 

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1 partner associations or businesses.
2     (g) School districts, charter schools, the Illinois
3 Mathematics and Science Academy, and joint collaborative
4 partnerships may establish science and technology education
5 centers or may contract with regional offices of education,
6 intermediate service centers, public community colleges,
7 4-year institutions of higher education, non-profit or
8 for-profit education providers, youth service agencies,
9 community-based organizations, or other appropriate entities
10 to establish science and technology education centers within
11 the public school system. Districts and charter schools may
12 individually operate alternative learning opportunities
13 programs or may collaborate with 2 or more districts or charter
14 schools or do both to create and operate science and technology
15 education centers.
16     (h) Beginning with the 2009-2010 school year, the State
17 Board of Education shall, subject to available appropriations,
18 annually award one or more science, technology, engineering,
19 and mathematics education center grants for the development and
20 operation of STEM centers.
21     A school district, a charter school, the Illinois
22 Mathematics and Science Academy, or a joint collaborative
23 partnership may apply for a STEM center grant pursuant to
24 procedures and time lines specified by rule of the State Board
25 of Education.
26     (i) The State Board of Education, in selecting one or more

 

 

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1 school districts, charter schools, or joint collaborative
2 partnerships or the Illinois Mathematics and Science Academy
3 for receipt of a grant, shall give priority to applicants that
4 are geographically located farthest from other STEM centers or
5 applicants that have less opportunity for science, technology,
6 engineering, and mathematics resource support. The State Board
7 shall also consider the following factors:
8         (1) the facility, equipment, and technology that are or
9     will be provided and the activities and range of programs
10     that are or will be offered by the STEM education center;
11         (2) the strength and capacity of the school district or
12     charter school to work as a network cooperatively with the
13     Illinois Mathematics and Science Academy, other STEM
14     centers, universities and STEM laboratories, businesses,
15     and industries; and
16         (3) recommendations of the Illinois P-20 Council and
17     the Illinois Mathematics and Science Academy.
18     (j) A STEM center grant shall be payable from moneys
19 appropriated to the STEM Education Center Grant Fund.
20     The State Board of Education shall specify the amount to be
21 awarded to each school district, charter school, or joint
22 collaborative partnership that is selected to receive a grant
23 and to the Illinois Mathematics and Science Academy, if
24 selected to receive a grant. The amount awarded to a new STEM
25 center for start-up costs shall not exceed $1,000,000 for the
26 first fiscal year and may not be renewed. The amount awarded to

 

 

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1 an operating STEM center for operating costs shall not exceed
2 $500,000 for one fiscal year and shall be renewed annually for
3 5 consecutive years if the STEM center is meeting its
4 accountability goals and its role as an active partner in a
5 generative teaching and learning network.
6     (k) Each school district, charter school, or joint
7 collaborative partnership that receives a grant pursuant to the
8 grant program and the Illinois Mathematics and Science Academy,
9 if selected to receive a grant, shall demonstrate, prior to
10 receiving any actual moneys, that the center has received or
11 has a written commitment for matching funds from other public
12 or private sources in the amount of a dollar-for-dollar match
13 with the amount of the grant. This requirement may be waived
14 upon application to and approval by the State Board of
15 Education based on a showing of continued need or financial
16 hardship.
17     (l) The State Board of Education shall promulgate such
18 rules as are required in this Section and such additional rules
19 as may be required for implementation of the grant program.
20     (m) Each school district or charter school that receives a
21 grant through the grant program shall, by the close of each
22 school year for which the grant was awarded, submit to the
23 Illinois Mathematics and Science Academy and the State Board of
24 Education a report specifying the following information:
25         (1) the manner in which the grant money was used;
26         (2) the progress made toward achieving the goals and

 

 

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1     producing the deliverables specified in the grant
2     recipient's application;
3         (3) any additional entities and businesses with whom
4     the grant recipient has contracted or partnered with the
5     goal of achieving greater integration of information
6     technology education in prekindergarten through grade 12
7     curriculum;
8         (4) the recipient school district's or charter
9     school's plan for continuing the integration of
10     information technology education into the curriculum,
11     regardless of whether the grant is renewed;
12         (5) the documentation demonstrating effective digital
13     collaboration and networking, technological cooperation
14     and sharing, and personal networking via innovative,
15     entrepreneurial networks;
16         (6) a description of innovative instructional methods;
17         (7) evidence of staff training and outreach to teachers
18     beyond those working in the STEM education center; and
19         (8) any other information specified by rule of the
20     State Board of Education.
21     (n) Notwithstanding the other provisions of this Section, a
22 recipient school need not submit a report for any academic year
23 in which no grants are made through the grant program.
24     (o) The STEM Education Center Grant Fund is created as a
25 special fund in the State treasury. All money in the Fund shall
26 be used, subject to appropriation, by the State Board of

 

 

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1 Education for the purpose of funding science, technology,
2 engineering, and mathematics education center grants awarded
3 under this Section.
4     (p) The State Board of Education may solicit and accept
5 money in the form of gifts, contributions, and grants to be
6 deposited in the STEM Education Center Grant Fund. The
7 acceptance of federal grants for purposes of this Section does
8 not commit State funds nor place an obligation upon the General
9 Assembly to continue the purposes for which the federal funds
10 are made available.
 
11     (105 ILCS 5/2-3.151 new)
12     Sec. 2-3.151. School Improvement Partnership Pool Fund.
13     (a) The School Improvement Partnership Pool Fund is created
14 as a special fund in the State treasury. All interest earned on
15 moneys in the Fund shall be deposited into the Fund. The School
16 Improvement Partnership Pool Fund shall not be subject to
17 sweeps, administrative charges, or charge-backs, such as, but
18 not limited to, those authorized under Section 8h of the State
19 Finance Act, nor any other fiscal or budgetary maneuver that
20 would in any way transfer any funds from the School Improvement
21 Partnership Pool Fund into any other fund of the State.
22     (b) Beginning in Fiscal Year 2011, moneys in the School
23 Improvement Partnership Pool Fund shall be used, subject to
24 appropriation, by the State Board of Education for a
25 competitive grant program to provide school districts with

 

 

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1 demonstrated academic and financial need quality, integrated
2 support systems, such as training for staff, tutoring programs
3 for students, small school initiatives, literacy coaching,
4 proven programs such as reduced class size, extended learning
5 time, and after school and summer school programs, programs to
6 engage parents, and other systems as determined by the State
7 Board of Education.
8     (c) School districts eligible to apply to the State Board
9 of Education for a grant under subsection (b) of this Section
10 shall be limited to those (i) with any school that has not met
11 adequate yearly progress under the federal No Child Left Behind
12 Act of 2001 for at least 2 consecutive years or (ii) that have
13 been designated through the State Board of Education's School
14 District Financial Profile System as on financial warning or
15 financial watch status. The State Board may, by rule, establish
16 any additional procedures with respect to this grant program.
 
17     (105 ILCS 5/2-3.152 new)
18     Sec. 2-3.152. Resource management service.
19     (a) The State Board of Education shall establish and
20 maintain an Internet web-based resource management service for
21 all school districts on or before July 1, 2013.
22     (b) The resource management service shall identify
23 resource configurations that contribute to improving internal
24 resources for instructional programs, provide action-oriented
25 analysis and solutions, and give school districts the ability

 

 

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1 to explore different scenarios of resource allocation.
2     (c) Annually, by the first day of October, an Internet
3 web-based preliminary resource allocation report must be
4 generated for each school district and delivered via the
5 Internet to each district superintendent for use by the
6 management team and the exclusive bargaining agents of the
7 school district's employees. This report shall identify
8 potential cost savings or resource reallocation opportunities
9 for the district in 5 core areas of school district spending.
10 These core areas are instruction, operation and maintenance,
11 transportation, food service, and central services. This
12 analysis shall show district spending in detailed
13 subcategories compared to demographically or operationally
14 similar peer school districts. The web-based resource
15 allocation reports generated under this Section constitute
16 preliminary drafts, notes, recommendations, memoranda, and
17 other records in which opinions are expressed or policies or
18 actions are formulated and therefore exempt from disclosure
19 under subdivision (f) of subsection (1) of Section 7 of the
20 Freedom of Information Act.
21     (d) Each school district shall have the ability through the
22 on-line resource allocation report to test various resource
23 allocation scenarios relative to pre-defined peers as well as
24 geographic peers and the most efficient peers statewide. Each
25 district shall have the ability to choose specific combinations
26 of districts for comparison.

 

 

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1     (e) The resource management service shall contain, based on
2 the spending and demographic profile of the school district,
3 action-oriented information, such as effective best practices
4 in schools districts, diagnostic questions, and other
5 management or community considerations that may be implemented
6 to capture savings identified in the resource allocation
7 report.
8     (f) The resource management service must be initiated and
9 maintained through a contract between the State Board of
10 Education and an independent third party specializing in school
11 market research within this State and the United States. Costs
12 to establish and maintain this service and train school
13 district personnel in the use of this service shall be supplied
14 by the General Assembly to the State Board of Education through
15 an annual appropriation of no less than $2 per student based on
16 the prior year total of enrolled students in public schools in
17 this State. Up to 25% of the annual appropriation may be
18 allocated by the State Board of Education to hire personnel and
19 facilitate data collection. No less than 25% of the annual
20 appropriation shall be utilized by the State Board of Education
21 to deliver training to school district personnel in the use of
22 the management service. Such training shall be delivered by
23 certificated school business officials or State Board of
24 Education trained personnel and may be provided through
25 administrator academies and mentoring programs. The State
26 Board of Education may establish contracts with other

 

 

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1 organizations to provide such training and mentoring.
2     In the event that a district does not employ a certificated
3 school business official, a least one employee must be trained
4 and certified in the use of the resource management service. In
5 addition, a representative of the exclusive bargaining agents
6 of the school district's employees shall be invited to be
7 trained and certified.
8     (g) The State Board of Education shall identify the data
9 required to implement the resource management service and
10 develop annual data reporting instruments designed to collect
11 the information from each school district.
12     The State Board of Education may provide grants to school
13 districts to permit those school districts to develop and
14 implement a plan for a shared services agreement in the
15 following areas: operation and maintenance and central
16 services.
17     (h) Annually, the certificated school business official or
18 resource management service trained employee in each school
19 district shall review and certify that the resource allocation
20 report has been received and reviewed by the management team
21 and the exclusive bargaining agent of the district.
22 Subsequently, a report must be filed with the State Board of
23 Education identifying the considerations that will be studied
24 as a result of such analysis. In addition, any implementation
25 of strategies or reallocation of resources associated with the
26 resource management service must be annually reported to the

 

 

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1 Board of Education, the exclusive bargaining agents of the
2 school district's employees, and, subsequently, the State
3 Board of Education. The State Board shall annually prepare a
4 cumulative report to be posted electronically containing those
5 initiatives studied and implemented on a statewide basis.
 
6     (105 ILCS 5/3-6.5 new)
7     Sec. 3-6.5. Regional office evaluation and accountability.
8     (a) The State Board of Education shall contract with a
9 third party to maintain information regarding the performance
10 of regional education service centers. Such information shall
11 include the following:
12         (1) district effectiveness and efficiency in districts
13     served resulting from technical assistance and program
14     support;
15         (2) direct services provided or regionally shared
16     services arranged by the service center that produce more
17     economical and efficient school operations;
18         (3) direct services provided or regionally shared
19     services arranged by the service center that provide for
20     assistance in core services; and
21         (4) grants received for implementation of State
22     initiatives and the results achieved by the service center
23     under the terms of the grant contract.
24     Regional offices of education and educational service
25 centers must promptly comply with any requests for information

 

 

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1 under this Section from the State Board of Education or its
2 third party contractor.
3     (b) The regional superintendent of schools shall report, in
4 writing, to the governing county board or boards, no later than
5 January 1, 2011 and each January 1 thereafter, stating (i) the
6 balance on hand at the time of the last report and all receipts
7 since that date, with the sources from which they were derived;
8 (ii) the amount distributed to each of the school treasurers in
9 the governing county or counties; and (iii) any balance on
10 hand. At the same time the regional superintendent shall
11 present for inspection his or her books and vouchers for all
12 expenditures, and submit in writing a statement of the
13 condition of the institute fund and of any other funds in his
14 or her care, custody, or control.
15     (c) Each regional superintendent of schools, whether for a
16 multi-county or for a single county educational service region,
17 shall present for inspection or otherwise make available to the
18 Auditor General, or to the agents designated by the Auditor
19 General, all financial statements, books, vouchers, and other
20 records required to be so presented or made available pursuant
21 to Section 2-3.17a of this Code and the rules of the Auditor
22 General pursuant to that Section.
23     (d) Beginning December 1, 2011, and annually thereafter,
24 the State Board of Education shall, through the contractor
25 referenced in subsection (a) of this Section, publish, online,
26 a cumulative report with information about each regional office

 

 

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1 of education and educational service center. Each report must
2 include, with respect to the prior fiscal year, the following:
3         (1) an audit of the office's finances, which shall be
4     provided by the Auditor General to the State Board of
5     Education or its third party contractor for this purpose;
6         (2) the information required to be maintained under
7     subsection (a) of this Section; and
8         (3) the results of the service evaluation report
9     annually made by the Office of the Lieutenant Governor
10     pursuant to Section 2-3.112 of this Code.
 
11     (105 ILCS 5/3-7)  (from Ch. 122, par. 3-7)
12     Sec. 3-7. Failure to prepare and forward information. If
13 the trustees of schools of any township in Class II county
14 school units, or any school district which forms a part of a
15 Class II county school unit but which is not subject to the
16 jurisdiction of the trustees of schools of any township in
17 which such district is located, or any school district in any
18 Class I county school units fail to prepare and forward or
19 cause to be prepared and forwarded to the regional
20 superintendent of schools, reports required by this Act, the
21 regional superintendent of schools shall furnish such
22 information or he shall employ a person or persons to furnish
23 such information, as far as practicable. Such person shall have
24 access to the books, records and papers of the school district
25 to enable him or them to prepare such reports, and the school

 

 

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1 district shall permit such person or persons to examine such
2 books, records and papers at such time and such place as such
3 person or persons may desire for the purpose aforesaid. For
4 such services the regional superintendent of schools shall bill
5 the district an amount to cover the cost of preparation of such
6 reports if he employs a person to prepare such reports.
7     Each school district shall, as of June 30 of each year,
8 cause an audit of its accounts to be made by a person lawfully
9 qualified to practice public accounting as regulated by the
10 Illinois Public Accounting Act. Such audit shall include (i)
11 development of a risk assessment of district internal controls,
12 (ii) an annual review and update of the risk assessment, and
13 (iii) an annual management letter that analyzes significant
14 risk assessment findings, recommends changes for strengthening
15 controls and reducing identified risks, and specifies
16 timeframes for implementation of these recommendations, as
17 well as financial statements of the district applicable to the
18 type of records required by other sections of this Act and in
19 addition shall set forth the scope of audit and shall include
20 the professional opinion signed by the auditor, or if such an
21 opinion is denied by the auditor, shall set forth the reasons
22 for such denial. Each school district shall on or before
23 October 15 of each year, submit an original and one copy of the
24 such audit to the regional superintendent of schools in the
25 educational service region having jurisdiction in which case
26 the regional superintendent of schools shall be relieved of

 

 

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1 responsibility in regard to the accounts of the school
2 district. If any school district fails to supply the regional
3 superintendent of schools with a copy of such audit report on
4 or before October 15, or within such time extended by the
5 regional superintendent of schools from that date, not to
6 exceed 60 days, then it shall be the responsibility of the
7 regional superintendent of schools having jurisdiction to
8 cause such audit to be made by employing an accountant licensed
9 to practice in the State of Illinois to conduct such audit and
10 shall bill the district for such services, or shall with the
11 personnel of his office make such audit to his satisfaction and
12 bill the district for such service. In the latter case, if the
13 audit is made by personnel employed in the office of the
14 regional superintendent of schools having jurisdiction, then
15 the regional superintendent of schools shall not be relieved of
16 the responsibility as to the accountability of the school
17 district. The copy of the audit shall be forwarded by the
18 regional superintendent to the State Board of Education on or
19 before November 15 of each year and shall be filed by the State
20 Board of Education. Beginning on July 1, 2010, all school
21 districts shall utilize a competitive request for proposals
22 process at least once every 5 years when contracting for such
23 an annual audit, provided that school districts with existing
24 contracts of less than 5 years in length that are in effect on
25 July 1, 2010 shall utilize a competitive request for proposals
26 process when contracting for an annual audit after the

 

 

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1 expiration date of the existing contract.
2     Each school district that is the administrative district
3 for several school districts operating under a joint agreement
4 as authorized by this Act shall, as of June 30 each year, cause
5 an audit of the accounts of the joint agreement to be made by a
6 person lawfully qualified to practice public accounting as
7 regulated by the Illinois Public Accounting Act. Such audit
8 shall include (i) development of a risk assessment of district
9 internal controls, (ii) an annual review and update of the risk
10 assessment, and (iii) an annual management letter that analyzes
11 significant risk assessment findings, recommends changes for
12 strengthening controls and reducing identified risks, and
13 specifies timeframes for implementation of these
14 recommendations, as well as financial statements of the
15 operation of the joint agreement applicable to the type of
16 records required by this Act and, in addition, shall set forth
17 the scope of the audit and shall include the professional
18 opinion signed by the auditor, or if such an opinion is denied,
19 the auditor shall set forth the reason for such denial. Each
20 administrative district of a joint agreement shall on or before
21 October 15 each year, submit an original and one copy of such
22 audit to the regional superintendent of schools in the
23 educational service region having jurisdiction in which case
24 the regional superintendent of schools shall be relieved of
25 responsibility in regard to the accounts of the joint
26 agreement. The copy of the audit shall be forwarded by the

 

 

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1 regional superintendent to the State Board of Education on or
2 before November 15 of each year and shall be filed by the State
3 Board of Education. The cost of such an audit shall be
4 apportioned among and paid by the several districts who are
5 parties to the joint agreement, in the same manner as other
6 costs and expenses accruing to the districts jointly. Beginning
7 on July 1, 2010, all school districts operating under a joint
8 agreement shall utilize a competitive request for proposals
9 process at least once every 5 years when contracting for such
10 an annual audit, provided that all school districts operating
11 under a joint agreement with existing contracts of less than 5
12 years in length that are in effect on July 1, 2010 shall
13 utilize a competitive request for proposals process when
14 contracting for an annual audit after the expiration date of
15 the existing contract.
16     The State Board of Education shall determine the adequacy
17 of the audits. All audits shall be kept on file in the office
18 of the State Board of Education.
19 (Source: P.A. 86-1441; 87-473.)
 
20     (105 ILCS 5/10-16.10 new)
21     Sec. 10-16.10. Board member leadership training.
22     (a) This Section shall apply to all school board members
23 serving pursuant to Section 10-10 of this Code who have been
24 elected on or after the effective date of this amendatory Act
25 of the 96th General Assembly or appointed to fill a vacancy of

 

 

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1 at least one year's duration on or after the effective date of
2 this amendatory Act of the 96th General Assembly.
3     (b) It is the policy of this State to encourage every
4 voting member of a board of education of a school district
5 elected or appointed for a term beginning on or after the
6 effective date of this amendatory Act of the 96th General
7 Assembly, within a year after the effective date of this
8 amendatory Act of the 96th General Assembly or the first year
9 of his or her term, to complete a minimum of 4 hours of
10 professional development leadership training covering topics
11 in education and labor law, financial oversight and
12 accountability, and fiduciary responsibilities of a school
13 board member.
14     (c) The training on financial oversight, accountability,
15 and fiduciary responsibilities may be provided by an
16 association established under this Code for the purpose of
17 training school board members or by other qualified providers
18 approved by the State Board of Education, in conjunction with
19 an association so established.
 
20     (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
21     Sec. 10-17a. Better schools accountability.
22     (1) Policy and Purpose. It shall be the policy of the State
23 of Illinois that each school district in this State, including
24 special charter districts and districts subject to the
25 provisions of Article 34, shall submit to parents, taxpayers of

 

 

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1 such district, the Governor, the General Assembly, and the
2 State Board of Education a school report card assessing the
3 performance of its schools and students. The report card shall
4 be an index of school performance measured against statewide
5 and local standards and will provide information to make prior
6 year comparisons and to set future year targets through the
7 school improvement plan.
8     (2) Reporting Requirements. Each school district shall
9 prepare a report card in accordance with the guidelines set
10 forth in this Section which describes the performance of its
11 students by school attendance centers and by district and the
12 district's financial resources and use of financial resources.
13 Such report card shall be presented at a regular school board
14 meeting subject to applicable notice requirements, posted on
15 the school district's Internet web site, if the district
16 maintains an Internet web site, made available to a newspaper
17 of general circulation serving the district, and, upon request,
18 sent home to a parent (unless the district does not maintain an
19 Internet web site, in which case the report card shall be sent
20 home to parents without request). If the district posts the
21 report card on its Internet web site, the district shall send a
22 written notice home to parents stating (i) that the report card
23 is available on the web site, (ii) the address of the web site,
24 (iii) that a printed copy of the report card will be sent to
25 parents upon request, and (iv) the telephone number that
26 parents may call to request a printed copy of the report card.

 

 

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1 In addition, each school district shall submit the completed
2 report card to the office of the district's Regional
3 Superintendent which shall make copies available to any
4 individuals requesting them.
5     The report card shall be completed and disseminated prior
6 to October 31 in each school year. The report card shall
7 contain, but not be limited to, actual local school attendance
8 center, school district and statewide data indicating the
9 present performance of the school, the State norms and the
10 areas for planned improvement for the school and school
11 district.
12     (3) (a) The report card shall include the following
13 applicable indicators of attendance center, district, and
14 statewide student performance: percent of students who exceed,
15 meet, or do not meet standards established by the State Board
16 of Education pursuant to Section 2-3.25a; growth model
17 assessment estimates for each district, subject to a statewide
18 growth model assessment system being established and data being
19 available pursuant to Section 2-3.64b of this Code; composite
20 and subtest means on nationally normed achievement tests for
21 college bound students; student attendance rates; chronic
22 truancy rate; dropout rate; graduation rate; and student
23 mobility, turnover shown as a percent of transfers out and a
24 percent of transfers in.
25     (b) The report card shall include the following
26 descriptions for the school, district, and State: average class

 

 

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1 size; amount of time per day devoted to mathematics, science,
2 English and social science at primary, middle and junior high
3 school grade levels; number of students taking the Prairie
4 State Achievement Examination under subsection (c) of Section
5 2-3.64, the number of those students who received a score of
6 excellent, and the average score by school of students taking
7 the examination; pupil-teacher ratio; pupil-administrator
8 ratio; operating expenditure per pupil; district expenditure
9 by fund; average administrator salary; and average teacher
10 salary. The report card shall also specify the amount of money
11 that the district receives from all sources, including without
12 limitation subcategories specifying the amount from local
13 property taxes, the amount from general State aid, the amount
14 from other State funding, and the amount from other income. The
15 report card shall also include the 5 components of the
16 financial rating and the total financial rating scores from the
17 State Financial Profile.
18     (c) The report card shall include applicable indicators of
19 parental involvement in each attendance center. The parental
20 involvement component of the report card shall include the
21 percentage of students whose parents or guardians have had one
22 or more personal contacts with the students' teachers during
23 the school year concerning the students' education, and such
24 other information, commentary, and suggestions as the school
25 district desires. For the purposes of this paragraph, "personal
26 contact" includes, but is not limited to, parent-teacher

 

 

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1 conferences, parental visits to school, school visits to home,
2 telephone conversations, and written correspondence. The
3 parental involvement component shall not single out or identify
4 individual students, parents, or guardians by name.
5     (d) The report card form shall be prepared by the State
6 Board of Education and provided to school districts by the most
7 efficient, economic, and appropriate means.
8     (e) The report card shall include an indicator describing
9 whether the school district has improved, declined, or remained
10 stable in the aggregate percentage of students making at least
11 one-year's academic growth each year, subject to a statewide
12 growth model assessment system being established and data being
13 available pursuant to Section 2-3.64b of this Code.
14     (f) Except for schools in a school district organized under
15 Article 34 of this Code, the report card shall include a
16 comparison of the following indicators to a benchmark group of
17 at least 5 schools that have similar demographics as defined by
18 the State Board of Education:
19         (1) percentage of students in the aggregate making one
20     year's progress in one year's time in reading, writing, and
21     mathematics, subject to a statewide growth model
22     assessment system being established and data being
23     available pursuant to Section 2-3.64b of this Code;
24         (2) State Financial Profile rating; and
25         (3) instruction per pupil expenditures.
26 (Source: P.A. 95-331, eff. 8-21-07.)
 

 

 

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1     (105 ILCS 5/10-17b new)
2     Sec. 10-17b. Financial policies. Beginning with the second
3 fiscal year after the effective date of this amendatory Act of
4 the 96th General Assembly, each school board shall adopt a
5 formal, written financial policy. The policy may include
6 information in the following areas:
7         (1) Debt capacity, issuance, and management.
8         (2) Capital asset management.
9         (3) Reserve or stabilization fund goals.
10         (4) Periodic budget to actual comparison reports.
11         (5) Fees and charges.
12         (6) The use of one-time revenue.
13         (7) Risk management related to internal controls.
14         (8) Purchasing.
15         (9) Vehicle acquisition and maintenance.
16 The school board shall make the policy publicly available.
 
17     (105 ILCS 5/10-17c new)
18     Sec. 10-17c. Long-term financial plan. Beginning with the
19 second fiscal year after the effective date of this amendatory
20 Act of the 96th General Assembly, each school board shall
21 develop a long-term financial plan that extends over at least a
22 3-year period and that is updated and approved annually. The
23 plan must include multi-year forecasts of revenues,
24 expenditures, and debt. The school board may make the plan

 

 

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1 available to the public by publishing it as a separate document
2 and submitting it with the annual budget or by posting the plan
3 as a document on the school district's Internet website, if
4 any. The forecasts that are the foundation of the plan must be
5 available to participants in the budget process before
6 budgetary decisions are made. The public must be provided
7 opportunities for providing dialog with respect to the
8 long-term financial planning process. Public access and review
9 shall take place as part of the official budget hearing process
10 in accordance with Section 17-1 of this Code, which requires
11 the posting of notice and making documents available to the
12 general public at least 30 days in advance of the budget
13 hearing.
 
14     (105 ILCS 5/10-17d new)
15     Sec. 10-17d. Capital improvement plan. Beginning with the
16 second fiscal year after the effective date of this amendatory
17 Act of the 96th General Assembly, each school board shall
18 develop a 5-year capital improvement plan that is updated and
19 approved annually. The plan must include a summary list of the
20 description of the capital projects to be completed over the
21 next 5 years, along with projected expenditures, and revenue
22 sources. The school board shall make the plan available to the
23 public. The school board shall hold a public hearing on the
24 capital improvement plan, which hearing may be held at a
25 regularly scheduled meeting of the board. This hearing shall be

 

 

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1 held in the same manner and subject to the same notice and
2 other requirements as the public hearing required prior to
3 adoption of the budget in conformity with Section 17-1 of this
4 Code, which requires the posting of notice and making documents
5 available to the general public at least 30 days in advance of
6 the budget hearing.
 
7     (105 ILCS 5/10-20.20)  (from Ch. 122, par. 10-20.20)
8     Sec. 10-20.20. Protection from suit.) To indemnify and
9 protect school districts, members of school boards, employees,
10 volunteer personnel authorized in Sections 10-22.34, 10-22.34a
11 and 10-22.34b of this Code, mentors of certified staff as
12 authorized in Article 21A and Sections 2-3.53a, 2-3.53b, and
13 34-18.33 of this Code, and student teachers against civil
14 rights damage claims and suits, constitutional rights damage
15 claims and suits and death and bodily injury and property
16 damage claims and suits, including defense thereof, when
17 damages are sought for negligent or wrongful acts alleged to
18 have been committed in the scope of employment or under the
19 direction of the board or related to any mentoring services
20 provided to certified staff of the school district. Such
21 indemnification and protection shall extend to persons who were
22 members of school boards, employees of school boards,
23 authorized volunteer personnel, mentors of certified staff, or
24 student teachers at the time of the incident from which a claim
25 arises. No agent may be afforded indemnification or protection

 

 

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1 unless he was a member of a school board, an employee of a
2 board, an authorized volunteer, a mentor of certified staff, or
3 a student teacher at the time of the incident from which the
4 claim arises.
5 (Source: P.A. 79-210.)
 
6     (105 ILCS 5/10-20.45)
7     Sec. 10-20.45 10-20.41. Pay for performance.
8     (a) In this Section:
9     "Growth model assessment" means the statewide growth model
10 assessment system established by the State Board of Education
11 to measure the annual increase or growth in each student's
12 performance relative to a standard year of academic growth on
13 the assessments provided for in Section 2-3.64b of this Code
14 and other performance indicators that the State Board
15 identifies and that reliably estimates school district,
16 school, and teacher effects on students' academic achievement
17 over time, controls for student characteristics, and uses an
18 independently verifiable statistical methodology to produce
19 such estimates.
20     "Value-added" means the improvement gains in student
21 achievement that are made each year based on pre-test and
22 post-test outcomes.
23     A Beginning with all newly-negotiated collective
24 bargaining agreements entered into after the effective date of
25 this amendatory Act of the 95th General Assembly, a school

 

 

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1 board and the exclusive bargaining representative, if any, may
2 include a performance-based teacher compensation plan in the
3 subject of its collective bargaining agreement. Nothing in this
4 Section shall preclude the school board and the exclusive
5 bargaining representative from agreeing to and implementing a
6 new performance-based teacher compensation plan prior to the
7 termination of a the current collective bargaining agreement in
8 existence on the effective date of this amendatory Act of the
9 96th General Assembly.
10     (b) The new teacher compensation plan bargained and agreed
11 to by the school board and the exclusive bargaining
12 representative under subsection (a) of this Section shall
13 provide certificated personnel with base salaries and shall
14 also provide that any increases in the compensation of
15 individual teachers or groups of teachers beyond base salaries
16 shall be pursuant, but not limited to, any of the following
17 elements:
18         (1) Excellent Superior teacher evaluations based on
19     multiple evaluations of their classroom teaching.
20         (2) A Evaluation of a teacher's student
21     classroom-level achievement growth as measured using a
22     growth model assessment or a value-added model.
23     "Value-added" means the improvement gains in student
24     achievement that are made each year based on pre-test and
25     post-test outcomes.
26         (3) School-level Evaluation of school-level

 

 

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1     achievement growth as measured using a growth model
2     assessment or a value-added model. "Value-added" means the
3     improvement gains in student achievement that are made each
4     year based on pre-test and post-test outcomes.
5         (4) Demonstration of superior, outstanding performance
6     by an individual teacher or groups of teachers through the
7     meeting of unique and specific teaching practice
8     objectives defined and agreed to in advance in any given
9     school year.
10         (5) Preparation for meeting and contribution to the
11     broader needs of the school organization (e.g., curriculum
12     development, family liaison and community outreach,
13     implementation of a professional development program for
14     faculty, and participation in school management).
15     (c) (Blank). A school board and exclusive bargaining
16 representative that initiate their own performance-based
17 teacher compensation program shall submit the new plan to the
18 State Board of Education for review not later than 150 days
19 before the plan is to become effective. If the plan does not
20 conform to this Section, the State Board of Education shall
21 return the plan to the school board and the exclusive
22 bargaining representative for modification. The school board
23 and the exclusive bargaining representative shall then have 30
24 days after the plan is returned to them to submit a modified
25 plan.
26     (d) Nothing in this Section precludes a school board and an

 

 

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1 exclusive bargaining representative from agreeing to and
2 implementing a performance-based teacher compensation plan
3 that does not meet the requirements of subsection (b) of this
4 Section and does not use standardized test scores as a basis
5 for determining compensation under the plan in order to provide
6 new incentives to improve student learning and to recruit and
7 retain highly qualified teachers, encourage highly qualified
8 teachers to undertake challenging assignments, and support
9 teachers' roles in improving students' educational
10 achievement.
11 (Source: P.A. 95-707, eff. 1-11-08; revised 1-23-08.)
 
12     (105 ILCS 5/10-20.46 new)
13     Sec. 10-20.46. School district financial accountability.
14     (a) A school board shall annually include a user-friendly
15 executive summary as part of the district's budget. The
16 executive summary shall include all of the following:
17         (1) The district's major goals and objectives.
18         (2) A discussion of the major financial factors and
19     trends affecting the budget, such as changes in revenues,
20     enrollment, and debt.
21         (3) A description of the budget process.
22         (4) An overview of revenues and expenditures for all
23     funds, including at least 3 to 5 years of prior and future
24     trends, based on data from the annual financial report.
25         (5) An explanation of significant financial and

 

 

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1     demographic trends.
2         (6) An explanation of the reasons for a budget deficit
3     and an explanation of how the deficit is being addressed in
4     accordance with Section 17-1 of this Code.
5         (7) A budget forecast for at least 3 to 5 years in the
6     future.
7         (8) Student enrollment trends, including a future
8     forecast.
9         (9) The number of personnel by type.
10         (10) Changes in both the long term and short term debt
11     burden.
12     (b) Beginning with the second fiscal year after the
13 effective date of this amendatory Act of the 96th General
14 Assembly, a school board shall annually include in the full
15 budget document the following items; any or all of the
16 following items may be published as separate documents provided
17 that they are explicitly referenced in the annual budget and
18 attached thereto and provided that they are made publicly
19 available at the same time as the tentative budget document:
20         (1) An organizational chart.
21         (2) Formal financial policies pursuant to Section
22     10-17b of this Code.
23         (3) The district's long-term financial plan pursuant
24     to Section 10-17c of this Code or a summary of the
25     long-term financial plan.
26         (4) The district's capital improvement plan pursuant

 

 

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1     to Section 10-17d of this Code or a summary of the capital
2     improvement plan.
 
3     (105 ILCS 5/10-22.45)  (from Ch. 122, par. 10-22.45)
4     Sec. 10-22.45. A school board shall To establish an audit
5 committee, which may include and to appoint members of the
6 board, or other appropriate officers, or persons who do not
7 serve on the board to the committee, to review audit reports
8 and any other financial reports and documents, including
9 management letters prepared by or on behalf of the board.
10 Nothing in this Section prohibits a school district from
11 maintaining its own internal audit function.
12 (Source: P.A. 82-644.)
 
13     (105 ILCS 5/14-13.01)  (from Ch. 122, par. 14-13.01)
14     Sec. 14-13.01. Reimbursement payable by State; Amounts.
15 Reimbursement for furnishing special educational facilities in
16 a recognized school to the type of children defined in Section
17 14-1.02 shall be paid to the school districts in accordance
18 with Section 14-12.01 for each school year ending June 30 by
19 the State Comptroller out of any money in the treasury
20 appropriated for such purposes on the presentation of vouchers
21 by the State Board of Education.
22     The reimbursement shall be limited to funds expended for
23 construction and maintenance of special education facilities
24 designed and utilized to house instructional programs,

 

 

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1 diagnostic services, other special education services for
2 children with disabilities and reimbursement as provided in
3 Section 14-13.01. There shall be no reimbursement for
4 construction and maintenance of any administrative facility
5 separated from special education facilities designed and
6 utilized to house instructional programs, diagnostic services
7 and other special education services for children with
8 disabilities.
9     (a) For children who have not been identified as eligible
10 for special education and for eligible children with physical
11 disabilities, including all eligible children whose placement
12 has been determined under Section 14-8.02 in hospital or home
13 instruction, 1/2 of the teacher's salary but not more than
14 $1,000 annually per child or $8,000 per teacher for the
15 1985-1986 school year through the 2005-2006 school year and
16 $1,000 per child or $9,000 per teacher for the 2006-2007 school
17 year through the 2008-2009 school year, $11,839 per teacher for
18 the 2009-2010 school year, $12,786 per teacher for the
19 2010-2011 school year, $14,679 per teacher for the 2011-2012
20 school year, and $20,358 per teacher for the 2012-2013 school
21 year and for each school year thereafter, whichever is less.
22 Thereafter, the reimbursement per teacher shall be increased
23 annually by a percentage increase equal to the percentage
24 increase, if any, in the U.S. Bureau of Labor Statistics'
25 Employment Cost Index for Elementary and Secondary Schools for
26 the then most recently completed calendar year. Children to be

 

 

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1 included in any reimbursement under this paragraph must
2 regularly receive a minimum of one hour of instruction each
3 school day, or in lieu thereof of a minimum of 5 hours of
4 instruction in each school week in order to qualify for full
5 reimbursement under this Section. If the attending physician
6 for such a child has certified that the child should not
7 receive as many as 5 hours of instruction in a school week,
8 however, reimbursement under this paragraph on account of that
9 child shall be computed proportionate to the actual hours of
10 instruction per week for that child divided by 5.
11     (b) For children described in Section 14-1.02, 4/5 of the
12 cost of transportation for each such child, whom the State
13 Superintendent of Education determined in advance requires
14 special transportation service in order to take advantage of
15 special educational facilities. Transportation costs shall be
16 determined in the same fashion as provided in Section 29-5. For
17 purposes of this subsection (b), the dates for processing
18 claims specified in Section 29-5 shall apply.
19     (c) For each professional worker excluding those included
20 in subparagraphs (a), (d), (e), and (f) of this Section, the
21 annual sum of $8,000 for the 1985-1986 school year through the
22 2005-2006 school year, and $9,000 for the 2006-2007 school year
23 through the 2008-2009 school year, $11,839 for the 2009-2010
24 school year, $12,786 for the 2010-2011 school year, $14,679 for
25 the 2011-2012 school year, and $20,358 for the 2012-2013 school
26 year. Thereafter, the reimbursement per professional worker

 

 

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1 shall be increased annually by a percentage increase equal to
2 the percentage increase, if any, in the U.S. Bureau of Labor
3 Statistics' Employment Cost Index for Elementary and Secondary
4 Schools for the then most recently completed calendar year and
5 for each school year thereafter.
6     (d) For one full time qualified director of the special
7 education program of each school district which maintains a
8 fully approved program of special education the annual sum of
9 $8,000 for the 1985-1986 school year through the 2005-2006
10 school year, and $9,000 for the 2006-2007 through the 2008-2009
11 school year, $11,839 for the 2009-2010 school year, $12,786 for
12 the 2010-2011 school year, $14,679 for the 2011-2012 school
13 year, and $20,358 for the 2012-2013 school year. Thereafter,
14 the reimbursement for the director shall be increased annually
15 by a percentage increase equal to the percentage increase, if
16 any, in the U.S. Bureau of Labor Statistics' Employment Cost
17 Index for Elementary and Secondary Schools for the then most
18 recently completed calendar year. school year and for each
19 school year thereafter. Districts participating in a joint
20 agreement special education program shall not receive such
21 reimbursement if reimbursement is made for a director of the
22 joint agreement program.
23     (e) For each school psychologist as defined in Section
24 14-1.09 the annual sum of $8,000 for the 1985-1986 school year
25 through the 2005-2006 school year, and $9,000 for the 2006-2007
26 school year through the 2008-2009 school year, $11,839 for the

 

 

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1 2009-2010 school year, $12,786 for the 2010-2011 school year,
2 $14,679 for the 2011-2012 school year, and $20,358 for the
3 2012-2013 school year. Thereafter, the reimbursement per
4 school psychologist shall be increased annually by a percentage
5 increase equal to the percentage increase, if any, in the U.S.
6 Bureau of Labor Statistics' Employment Cost Index for
7 Elementary and Secondary Schools for the then most recently
8 completed calendar year and for each school year thereafter.
9     (f) For each qualified teacher working in a fully approved
10 program for children of preschool age who are deaf or
11 hard-of-hearing the annual sum of $8,000 for the 1985-1986
12 school year through the 2005-2006 school year, and $9,000 for
13 the 2006-2007 school year through the 2008-2009 school year,
14 $11,839 for the 2009-2010 school year, $12,786 for the
15 2010-2011 school year, $14,679 for the 2011-2012 school year,
16 and $20,358 for the 2012-2013 school year. Thereafter, the
17 reimbursement per teacher shall be increased annually by a
18 percentage increase equal to the percentage increase, if any,
19 in the U.S. Bureau of Labor Statistics' Employment Cost Index
20 for Elementary and Secondary Schools for the then most recently
21 completed calendar year and for each school year thereafter.
22     (g) For readers, working with blind or partially seeing
23 children 1/2 of their salary but not more than $400 annually
24 per child. Readers may be employed to assist such children and
25 shall not be required to be certified but prior to employment
26 shall meet standards set up by the State Board of Education.

 

 

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1     (h) For necessary non-certified employees working in any
2 class or program for children defined in this Article, 1/2 of
3 the salary paid or $2,800 annually per employee through the
4 2005-2006 school year, and $3,500 per employee for the
5 2006-2007 school year through the 2008-2009 school year, $4,406
6 per employee for the 2019-2010 school year, $4,708 per employee
7 for the 2010-2011 school year, $5,313 per employee for the
8 2011-2012 school year, and $7,126 per employee for the
9 2012-2013 school year and for each school year thereafter,
10 whichever is less. Thereafter, the reimbursement per employee
11 shall be increased annually by a percentage increase equal to
12 the percentage increase, if any, in the U.S. Bureau of Labor
13 Statistics' Employment Cost Index for Elementary and Secondary
14 Schools for the then most recently completed calendar year.
15     The State Board of Education shall set standards and
16 prescribe rules for determining the allocation of
17 reimbursement under this section on less than a full time basis
18 and for less than a school year.
19     When any school district eligible for reimbursement under
20 this Section operates a school or program approved by the State
21 Superintendent of Education for a number of days in excess of
22 the adopted school calendar but not to exceed 235 school days,
23 such reimbursement shall be increased by 1/180 of the amount or
24 rate paid hereunder for each day such school is operated in
25 excess of 180 days per calendar year.
26     Notwithstanding any other provision of law, any school

 

 

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1 district receiving a payment under this Section or under
2 Section 14-7.02, 14-7.02b, or 29-5 of this Code may classify
3 all or a portion of the funds that it receives in a particular
4 fiscal year or from general State aid pursuant to Section
5 18-8.05 of this Code as funds received in connection with any
6 funding program for which it is entitled to receive funds from
7 the State in that fiscal year (including, without limitation,
8 any funding program referenced in this Section), regardless of
9 the source or timing of the receipt. The district may not
10 classify more funds as funds received in connection with the
11 funding program than the district is entitled to receive in
12 that fiscal year for that program. Any classification by a
13 district must be made by a resolution of its board of
14 education. The resolution must identify the amount of any
15 payments or general State aid to be classified under this
16 paragraph and must specify the funding program to which the
17 funds are to be treated as received in connection therewith.
18 This resolution is controlling as to the classification of
19 funds referenced therein. A certified copy of the resolution
20 must be sent to the State Superintendent of Education. The
21 resolution shall still take effect even though a copy of the
22 resolution has not been sent to the State Superintendent of
23 Education in a timely manner. No classification under this
24 paragraph by a district shall affect the total amount or timing
25 of money the district is entitled to receive under this Code.
26 No classification under this paragraph by a district shall in

 

 

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1 any way relieve the district from or affect any requirements
2 that otherwise would apply with respect to that funding
3 program, including any accounting of funds by source, reporting
4 expenditures by original source and purpose, reporting
5 requirements, or requirements of providing services.
6 (Source: P.A. 95-415, eff. 8-24-07; 95-707, eff. 1-11-08.)
 
7     (105 ILCS 5/17-2.11c new)
8     Sec. 17-2.11c. Non-referendum bonds. Upon the
9 certification of an architect and subsequent approval by the
10 regional superintendent of schools and the State Board of
11 Education, a board of education governing a school district
12 having not more than 500,000 inhabitants may issue
13 non-referendum bonds for the purposes described in Section 19-3
14 of this Code. Such bonds may be issued in excess of any
15 statutory limitation as to debt prescribed in Article 19 of
16 this Code.
 
17     (105 ILCS 5/18-8.05)
18     Sec. 18-8.05. Basis for apportionment of general State
19 financial aid and supplemental general State aid to the common
20 schools for the 1998-1999 and subsequent school years.
 
21 (A) General Provisions.
22     (1) The provisions of this Section apply to the 1998-1999
23 and subsequent school years. The system of general State

 

 

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1 financial aid provided for in this Section is designed to
2 assure that, through a combination of State financial aid and
3 required local resources, the financial support provided each
4 pupil in Average Daily Attendance equals or exceeds a
5 prescribed per pupil Foundation Level. This formula approach
6 imputes a level of per pupil Available Local Resources and
7 provides for the basis to calculate a per pupil level of
8 general State financial aid that, when added to Available Local
9 Resources, equals or exceeds the Foundation Level. The amount
10 of per pupil general State financial aid for school districts,
11 in general, varies in inverse relation to Available Local
12 Resources. Per pupil amounts are based upon each school
13 district's Average Daily Attendance as that term is defined in
14 this Section.
15     (2) In addition to general State financial aid, school
16 districts with specified levels or concentrations of pupils
17 from low income households are eligible to receive supplemental
18 general State financial aid grants as provided pursuant to
19 subsection (H). The supplemental State aid grants provided for
20 school districts under subsection (H) shall be appropriated for
21 distribution to school districts as part of the same line item
22 in which the general State financial aid of school districts is
23 appropriated under this Section.
24     (3) To receive financial assistance under this Section,
25 school districts are required to file claims with the State
26 Board of Education, subject to the following requirements:

 

 

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1         (a) Any school district which fails for any given
2     school year to maintain school as required by law, or to
3     maintain a recognized school is not eligible to file for
4     such school year any claim upon the Common School Fund. In
5     case of nonrecognition of one or more attendance centers in
6     a school district otherwise operating recognized schools,
7     the claim of the district shall be reduced in the
8     proportion which the Average Daily Attendance in the
9     attendance center or centers bear to the Average Daily
10     Attendance in the school district. A "recognized school"
11     means any public school which meets the standards as
12     established for recognition by the State Board of
13     Education. A school district or attendance center not
14     having recognition status at the end of a school term is
15     entitled to receive State aid payments due upon a legal
16     claim which was filed while it was recognized.
17         (b) School district claims filed under this Section are
18     subject to Sections 18-9 and 18-12, except as otherwise
19     provided in this Section.
20         (c) If a school district operates a full year school
21     under Section 10-19.1, the general State aid to the school
22     district shall be determined by the State Board of
23     Education in accordance with this Section as near as may be
24     applicable.
25         (d) (Blank).
26     (4) Except as provided in subsections (H) and (L), the

 

 

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1 board of any district receiving any of the grants provided for
2 in this Section may apply those funds to any fund so received
3 for which that board is authorized to make expenditures by law.
4     School districts are not required to exert a minimum
5 Operating Tax Rate in order to qualify for assistance under
6 this Section.
7     (5) As used in this Section the following terms, when
8 capitalized, shall have the meaning ascribed herein:
9         (a) "Average Daily Attendance": A count of pupil
10     attendance in school, averaged as provided for in
11     subsection (C) and utilized in deriving per pupil financial
12     support levels.
13         (b) "Available Local Resources": A computation of
14     local financial support, calculated on the basis of Average
15     Daily Attendance and derived as provided pursuant to
16     subsection (D).
17         (c) "Corporate Personal Property Replacement Taxes":
18     Funds paid to local school districts pursuant to "An Act in
19     relation to the abolition of ad valorem personal property
20     tax and the replacement of revenues lost thereby, and
21     amending and repealing certain Acts and parts of Acts in
22     connection therewith", certified August 14, 1979, as
23     amended (Public Act 81-1st S.S.-1).
24         (c-5) "ECI" means the Employment Cost Index as
25     published by the U.S. Bureau of Labor Statistics.
26         (d) "Foundation Level": A prescribed level of per pupil

 

 

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1     financial support as provided for in subsection (B).
2         (e) "Operating Tax Rate": All school district property
3     taxes extended for all purposes, except Bond and Interest,
4     Summer School, Rent, Capital Improvement, and Vocational
5     Education Building purposes.
 
6 (B) Foundation Level.
7     (1) The Foundation Level is a figure established by the
8 State representing the minimum level of per pupil financial
9 support that should be available to provide for the basic
10 education of each pupil in Average Daily Attendance. As set
11 forth in this Section, each school district is assumed to exert
12 a sufficient local taxing effort such that, in combination with
13 the aggregate of general State financial aid provided the
14 district, an aggregate of State and local resources are
15 available to meet the basic education needs of pupils in the
16 district.
17     (2) For the 1998-1999 school year, the Foundation Level of
18 support is $4,225. For the 1999-2000 school year, the
19 Foundation Level of support is $4,325. For the 2000-2001 school
20 year, the Foundation Level of support is $4,425. For the
21 2001-2002 school year and 2002-2003 school year, the Foundation
22 Level of support is $4,560. For the 2003-2004 school year, the
23 Foundation Level of support is $4,810. For the 2004-2005 school
24 year, the Foundation Level of support is $4,964. For the
25 2005-2006 school year, the Foundation Level of support is

 

 

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1 $5,164. For the 2006-2007 school year, the Foundation Level of
2 support is $5,334. For the 2007-2008 school year, the
3 Foundation Level of support is $5,734.
4     (3) For the 2008-2009 school year and each school year
5 through the 2009-2010 school year thereafter, the Foundation
6 Level of support is $5,959 or such greater amount as may be
7 established by law by the General Assembly.
8     (4) It is the intention of the 96th General Assembly that
9 the Foundation Level of support be increased to the Education
10 Funding Advisory Board's recommendation for the 2006-2007
11 school year and be inflation adjusted to the 2013-2014 school
12 year, which would create a Foundation Level of $8,410, and that
13 this Foundation Level of support be reached over a 4-year,
14 phase-in period to allow for thoughtful planning by school
15 districts on the utilization of this funding to best enhance
16 education.
17     For (i) school year 2010-2011, the Foundation Level of
18 support is $6,540; (ii) school year 2011-2012, the Foundation
19 Level of support is $7,141; (iii) school year 2012-2013, the
20 Foundation Level of support is $7,764; and (iv) school year
21 2013-2014, the Foundation Level of support is $8,410. For each
22 school year thereafter, the Foundation Level of support shall
23 be equal to the Foundation Level of support for the immediately
24 preceding completed school year, increased by the percentage
25 increase, if any, in the ECI published for the then most
26 recently completed calendar year or such greater amount as may

 

 

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1 be established by law by the General Assembly.
 
2 (C) Average Daily Attendance.
3     (1) For purposes of calculating general State aid pursuant
4 to subsection (E), an Average Daily Attendance figure shall be
5 utilized. The Average Daily Attendance figure for formula
6 calculation purposes shall be the monthly average of the actual
7 number of pupils in attendance of each school district, as
8 further averaged for the best 3 months of pupil attendance for
9 each school district. In compiling the figures for the number
10 of pupils in attendance, school districts and the State Board
11 of Education shall, for purposes of general State aid funding,
12 conform attendance figures to the requirements of subsection
13 (F).
14     (2) The Average Daily Attendance figures utilized in
15 subsection (E) shall be the requisite attendance data for the
16 school year immediately preceding the school year for which
17 general State aid is being calculated or the average of the
18 attendance data for the 3 preceding school years, whichever is
19 greater. The Average Daily Attendance figures utilized in
20 subsection (H) shall be the requisite attendance data for the
21 school year immediately preceding the school year for which
22 general State aid is being calculated.
 
23 (D) Available Local Resources.
24     (1) For purposes of calculating general State aid pursuant

 

 

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1 to subsection (E), a representation of Available Local
2 Resources per pupil, as that term is defined and determined in
3 this subsection, shall be utilized. Available Local Resources
4 per pupil shall include a calculated dollar amount representing
5 local school district revenues from local property taxes and
6 from Corporate Personal Property Replacement Taxes, expressed
7 on the basis of pupils in Average Daily Attendance. Calculation
8 of Available Local Resources shall exclude any tax amnesty
9 funds received as a result of Public Act 93-26.
10     (2) In determining a school district's revenue from local
11 property taxes, the State Board of Education shall utilize the
12 equalized assessed valuation of all taxable property of each
13 school district as of September 30 of the previous year. The
14 equalized assessed valuation utilized shall be obtained and
15 determined as provided in subsection (G).
16     (3) For school districts maintaining grades kindergarten
17 through 12, local property tax revenues per pupil shall be
18 calculated as the product of the applicable equalized assessed
19 valuation for the district multiplied by 3.00%, and divided by
20 the district's Average Daily Attendance figure. For school
21 districts maintaining grades kindergarten through 8, local
22 property tax revenues per pupil shall be calculated as the
23 product of the applicable equalized assessed valuation for the
24 district multiplied by 2.30%, and divided by the district's
25 Average Daily Attendance figure. For school districts
26 maintaining grades 9 through 12, local property tax revenues

 

 

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1 per pupil shall be the applicable equalized assessed valuation
2 of the district multiplied by 1.05%, and divided by the
3 district's Average Daily Attendance figure.
4     For partial elementary unit districts created pursuant to
5 Article 11E of this Code, local property tax revenues per pupil
6 shall be calculated as the product of the equalized assessed
7 valuation for property within the partial elementary unit
8 district for elementary purposes, as defined in Article 11E of
9 this Code, multiplied by 2.06% and divided by the district's
10 Average Daily Attendance figure, plus the product of the
11 equalized assessed valuation for property within the partial
12 elementary unit district for high school purposes, as defined
13 in Article 11E of this Code, multiplied by 0.94% and divided by
14 the district's Average Daily Attendance figure.
15     (4) The Corporate Personal Property Replacement Taxes paid
16 to each school district during the calendar year 2 years before
17 the calendar year in which a school year begins, divided by the
18 Average Daily Attendance figure for that district, shall be
19 added to the local property tax revenues per pupil as derived
20 by the application of the immediately preceding paragraph (3).
21 The sum of these per pupil figures for each school district
22 shall constitute Available Local Resources as that term is
23 utilized in subsection (E) in the calculation of general State
24 aid.
 
25 (E) Computation of General State Aid.

 

 

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1     (1) For each school year, the amount of general State aid
2 allotted to a school district shall be computed by the State
3 Board of Education as provided in this subsection.
4     (2) For any school district for which Available Local
5 Resources per pupil is less than the product of 0.93 times the
6 Foundation Level, general State aid for that district shall be
7 calculated as an amount equal to the Foundation Level minus
8 Available Local Resources, multiplied by the Average Daily
9 Attendance of the school district.
10     (3) For any school district for which Available Local
11 Resources per pupil is equal to or greater than the product of
12 0.93 times the Foundation Level and less than the product of
13 1.75 times the Foundation Level, the general State aid per
14 pupil shall be a decimal proportion of the Foundation Level
15 derived using a linear algorithm. Under this linear algorithm,
16 the calculated general State aid per pupil shall decline in
17 direct linear fashion from 0.07 times the Foundation Level for
18 a school district with Available Local Resources equal to the
19 product of 0.93 times the Foundation Level, to 0.05 times the
20 Foundation Level for a school district with Available Local
21 Resources equal to the product of 1.75 times the Foundation
22 Level. The allocation of general State aid for school districts
23 subject to this paragraph 3 shall be the calculated general
24 State aid per pupil figure multiplied by the Average Daily
25 Attendance of the school district.
26     (4) For any school district for which Available Local

 

 

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1 Resources per pupil equals or exceeds the product of 1.75 times
2 the Foundation Level, the general State aid for the school
3 district shall be calculated as the product of $218 multiplied
4 by the Average Daily Attendance of the school district.
5     (5) The amount of general State aid allocated to a school
6 district for the 1999-2000 school year meeting the requirements
7 set forth in paragraph (4) of subsection (G) shall be increased
8 by an amount equal to the general State aid that would have
9 been received by the district for the 1998-1999 school year by
10 utilizing the Extension Limitation Equalized Assessed
11 Valuation as calculated in paragraph (4) of subsection (G) less
12 the general State aid allotted for the 1998-1999 school year.
13 This amount shall be deemed a one time increase, and shall not
14 affect any future general State aid allocations.
 
15 (F) Compilation of Average Daily Attendance.
16     (1) Each school district shall, by July 1 of each year,
17 submit to the State Board of Education, on forms prescribed by
18 the State Board of Education, attendance figures for the school
19 year that began in the preceding calendar year. The attendance
20 information so transmitted shall identify the average daily
21 attendance figures for each month of the school year. Beginning
22 with the general State aid claim form for the 2002-2003 school
23 year, districts shall calculate Average Daily Attendance as
24 provided in subdivisions (a), (b), and (c) of this paragraph
25 (1).

 

 

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1         (a) In districts that do not hold year-round classes,
2     days of attendance in August shall be added to the month of
3     September and any days of attendance in June shall be added
4     to the month of May.
5         (b) In districts in which all buildings hold year-round
6     classes, days of attendance in July and August shall be
7     added to the month of September and any days of attendance
8     in June shall be added to the month of May.
9         (c) In districts in which some buildings, but not all,
10     hold year-round classes, for the non-year-round buildings,
11     days of attendance in August shall be added to the month of
12     September and any days of attendance in June shall be added
13     to the month of May. The average daily attendance for the
14     year-round buildings shall be computed as provided in
15     subdivision (b) of this paragraph (1). To calculate the
16     Average Daily Attendance for the district, the average
17     daily attendance for the year-round buildings shall be
18     multiplied by the days in session for the non-year-round
19     buildings for each month and added to the monthly
20     attendance of the non-year-round buildings.
21     Except as otherwise provided in this Section, days of
22 attendance by pupils shall be counted only for sessions of not
23 less than 5 clock hours of school work per day under direct
24 supervision of: (i) teachers, or (ii) non-teaching personnel or
25 volunteer personnel when engaging in non-teaching duties and
26 supervising in those instances specified in subsection (a) of

 

 

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1 Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
2 of legal school age and in kindergarten and grades 1 through
3 12.
4     Days of attendance by tuition pupils shall be accredited
5 only to the districts that pay the tuition to a recognized
6 school.
7     (2) Days of attendance by pupils of less than 5 clock hours
8 of school shall be subject to the following provisions in the
9 compilation of Average Daily Attendance.
10         (a) Pupils regularly enrolled in a public school for
11     only a part of the school day may be counted on the basis
12     of 1/6 day for every class hour of instruction of 40
13     minutes or more attended pursuant to such enrollment,
14     unless a pupil is enrolled in a block-schedule format of 80
15     minutes or more of instruction, in which case the pupil may
16     be counted on the basis of the proportion of minutes of
17     school work completed each day to the minimum number of
18     minutes that school work is required to be held that day.
19         (b) Days of attendance may be less than 5 clock hours
20     on the opening and closing of the school term, and upon the
21     first day of pupil attendance, if preceded by a day or days
22     utilized as an institute or teachers' workshop.
23         (c) A session of 4 or more clock hours may be counted
24     as a day of attendance upon certification by the regional
25     superintendent, and approved by the State Superintendent
26     of Education to the extent that the district has been

 

 

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1     forced to use daily multiple sessions.
2         (d) A session of 3 or more clock hours may be counted
3     as a day of attendance (1) when the remainder of the school
4     day or at least 2 hours in the evening of that day is
5     utilized for an in-service training program for teachers,
6     up to a maximum of 5 days per school year of which a
7     maximum of 4 days of such 5 days may be used for
8     parent-teacher conferences, provided a district conducts
9     an in-service training program for teachers which has been
10     approved by the State Superintendent of Education; or, in
11     lieu of 4 such days, 2 full days may be used, in which
12     event each such day may be counted as a day of attendance;
13     and (2) when days in addition to those provided in item (1)
14     are scheduled by a school pursuant to its school
15     improvement plan adopted under Article 34 or its revised or
16     amended school improvement plan adopted under Article 2,
17     provided that (i) such sessions of 3 or more clock hours
18     are scheduled to occur at regular intervals, (ii) the
19     remainder of the school days in which such sessions occur
20     are utilized for in-service training programs or other
21     staff development activities for teachers, and (iii) a
22     sufficient number of minutes of school work under the
23     direct supervision of teachers are added to the school days
24     between such regularly scheduled sessions to accumulate
25     not less than the number of minutes by which such sessions
26     of 3 or more clock hours fall short of 5 clock hours. Any

 

 

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1     full days used for the purposes of this paragraph shall not
2     be considered for computing average daily attendance. Days
3     scheduled for in-service training programs, staff
4     development activities, or parent-teacher conferences may
5     be scheduled separately for different grade levels and
6     different attendance centers of the district.
7         (e) A session of not less than one clock hour of
8     teaching hospitalized or homebound pupils on-site or by
9     telephone to the classroom may be counted as 1/2 day of
10     attendance, however these pupils must receive 4 or more
11     clock hours of instruction to be counted for a full day of
12     attendance.
13         (f) A session of at least 4 clock hours may be counted
14     as a day of attendance for first grade pupils, and pupils
15     in full day kindergartens, and a session of 2 or more hours
16     may be counted as 1/2 day of attendance by pupils in
17     kindergartens which provide only 1/2 day of attendance.
18         (g) For children with disabilities who are below the
19     age of 6 years and who cannot attend 2 or more clock hours
20     because of their disability or immaturity, a session of not
21     less than one clock hour may be counted as 1/2 day of
22     attendance; however for such children whose educational
23     needs so require a session of 4 or more clock hours may be
24     counted as a full day of attendance.
25         (h) A recognized kindergarten which provides for only
26     1/2 day of attendance by each pupil shall not have more

 

 

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1     than 1/2 day of attendance counted in any one day. However,
2     kindergartens may count 2 1/2 days of attendance in any 5
3     consecutive school days. When a pupil attends such a
4     kindergarten for 2 half days on any one school day, the
5     pupil shall have the following day as a day absent from
6     school, unless the school district obtains permission in
7     writing from the State Superintendent of Education.
8     Attendance at kindergartens which provide for a full day of
9     attendance by each pupil shall be counted the same as
10     attendance by first grade pupils. Only the first year of
11     attendance in one kindergarten shall be counted, except in
12     case of children who entered the kindergarten in their
13     fifth year whose educational development requires a second
14     year of kindergarten as determined under the rules and
15     regulations of the State Board of Education.
16         (i) On the days when the Prairie State Achievement
17     Examination is administered under subsection (c) of
18     Section 2-3.64 of this Code, the day of attendance for a
19     pupil whose school day must be shortened to accommodate
20     required testing procedures may be less than 5 clock hours
21     and shall be counted towards the 176 days of actual pupil
22     attendance required under Section 10-19 of this Code,
23     provided that a sufficient number of minutes of school work
24     in excess of 5 clock hours are first completed on other
25     school days to compensate for the loss of school work on
26     the examination days.
 

 

 

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1 (G) Equalized Assessed Valuation Data.
2     (1) For purposes of the calculation of Available Local
3 Resources required pursuant to subsection (D), the State Board
4 of Education shall secure from the Department of Revenue the
5 value as equalized or assessed by the Department of Revenue of
6 all taxable property of every school district, together with
7 (i) the applicable tax rate used in extending taxes for the
8 funds of the district as of September 30 of the previous year
9 and (ii) the limiting rate for all school districts subject to
10 property tax extension limitations as imposed under the
11 Property Tax Extension Limitation Law.
12     The Department of Revenue shall add to the equalized
13 assessed value of all taxable property of each school district
14 situated entirely or partially within a county that is or was
15 subject to the provisions of Section 15-176 or 15-177 of the
16 Property Tax Code (a) an amount equal to the total amount by
17 which the homestead exemption allowed under Section 15-176 or
18 15-177 of the Property Tax Code for real property situated in
19 that school district exceeds the total amount that would have
20 been allowed in that school district if the maximum reduction
21 under Section 15-176 was (i) $4,500 in Cook County or $3,500 in
22 all other counties in tax year 2003 or (ii) $5,000 in all
23 counties in tax year 2004 and thereafter and (b) an amount
24 equal to the aggregate amount for the taxable year of all
25 additional exemptions under Section 15-175 of the Property Tax

 

 

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1 Code for owners with a household income of $30,000 or less. The
2 county clerk of any county that is or was subject to the
3 provisions of Section 15-176 or 15-177 of the Property Tax Code
4 shall annually calculate and certify to the Department of
5 Revenue for each school district all homestead exemption
6 amounts under Section 15-176 or 15-177 of the Property Tax Code
7 and all amounts of additional exemptions under Section 15-175
8 of the Property Tax Code for owners with a household income of
9 $30,000 or less. It is the intent of this paragraph that if the
10 general homestead exemption for a parcel of property is
11 determined under Section 15-176 or 15-177 of the Property Tax
12 Code rather than Section 15-175, then the calculation of
13 Available Local Resources shall not be affected by the
14 difference, if any, between the amount of the general homestead
15 exemption allowed for that parcel of property under Section
16 15-176 or 15-177 of the Property Tax Code and the amount that
17 would have been allowed had the general homestead exemption for
18 that parcel of property been determined under Section 15-175 of
19 the Property Tax Code. It is further the intent of this
20 paragraph that if additional exemptions are allowed under
21 Section 15-175 of the Property Tax Code for owners with a
22 household income of less than $30,000, then the calculation of
23 Available Local Resources shall not be affected by the
24 difference, if any, because of those additional exemptions.
25     This equalized assessed valuation, as adjusted further by
26 the requirements of this subsection, shall be utilized in the

 

 

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1 calculation of Available Local Resources.
2     (2) The equalized assessed valuation in paragraph (1) shall
3 be adjusted, as applicable, in the following manner:
4         (a) For the purposes of calculating State aid under
5     this Section, with respect to any part of a school district
6     within a redevelopment project area in respect to which a
7     municipality has adopted tax increment allocation
8     financing pursuant to the Tax Increment Allocation
9     Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
10     of the Illinois Municipal Code or the Industrial Jobs
11     Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
12     Illinois Municipal Code, no part of the current equalized
13     assessed valuation of real property located in any such
14     project area which is attributable to an increase above the
15     total initial equalized assessed valuation of such
16     property shall be used as part of the equalized assessed
17     valuation of the district, until such time as all
18     redevelopment project costs have been paid, as provided in
19     Section 11-74.4-8 of the Tax Increment Allocation
20     Redevelopment Act or in Section 11-74.6-35 of the
21     Industrial Jobs Recovery Law. For the purpose of the
22     equalized assessed valuation of the district, the total
23     initial equalized assessed valuation or the current
24     equalized assessed valuation, whichever is lower, shall be
25     used until such time as all redevelopment project costs
26     have been paid.

 

 

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1         (b) The real property equalized assessed valuation for
2     a school district shall be adjusted by subtracting from the
3     real property value as equalized or assessed by the
4     Department of Revenue for the district an amount computed
5     by dividing the amount of any abatement of taxes under
6     Section 18-170 of the Property Tax Code by 3.00% for a
7     district maintaining grades kindergarten through 12, by
8     2.30% for a district maintaining grades kindergarten
9     through 8, or by 1.05% for a district maintaining grades 9
10     through 12 and adjusted by an amount computed by dividing
11     the amount of any abatement of taxes under subsection (a)
12     of Section 18-165 of the Property Tax Code by the same
13     percentage rates for district type as specified in this
14     subparagraph (b).
15     (3) For the 1999-2000 school year and each school year
16 thereafter, if a school district meets all of the criteria of
17 this subsection (G)(3), the school district's Available Local
18 Resources shall be calculated under subsection (D) using the
19 district's Extension Limitation Equalized Assessed Valuation
20 as calculated under this subsection (G)(3).
21     For purposes of this subsection (G)(3) the following terms
22 shall have the following meanings:
23         "Budget Year": The school year for which general State
24     aid is calculated and awarded under subsection (E).
25         "Base Tax Year": The property tax levy year used to
26     calculate the Budget Year allocation of general State aid.

 

 

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1         "Preceding Tax Year": The property tax levy year
2     immediately preceding the Base Tax Year.
3         "Base Tax Year's Tax Extension": The product of the
4     equalized assessed valuation utilized by the County Clerk
5     in the Base Tax Year multiplied by the limiting rate as
6     calculated by the County Clerk and defined in the Property
7     Tax Extension Limitation Law.
8         "Preceding Tax Year's Tax Extension": The product of
9     the equalized assessed valuation utilized by the County
10     Clerk in the Preceding Tax Year multiplied by the Operating
11     Tax Rate as defined in subsection (A).
12         "Extension Limitation Ratio": A numerical ratio,
13     certified by the County Clerk, in which the numerator is
14     the Base Tax Year's Tax Extension and the denominator is
15     the Preceding Tax Year's Tax Extension.
16         "Operating Tax Rate": The operating tax rate as defined
17     in subsection (A).
18     If a school district is subject to property tax extension
19 limitations as imposed under the Property Tax Extension
20 Limitation Law, the State Board of Education shall calculate
21 the Extension Limitation Equalized Assessed Valuation of that
22 district. For the 1999-2000 school year, the Extension
23 Limitation Equalized Assessed Valuation of a school district as
24 calculated by the State Board of Education shall be equal to
25 the product of the district's 1996 Equalized Assessed Valuation
26 and the district's Extension Limitation Ratio. For the

 

 

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1 2000-2001 school year and each school year thereafter, the
2 Extension Limitation Equalized Assessed Valuation of a school
3 district as calculated by the State Board of Education shall be
4 equal to the product of the Equalized Assessed Valuation last
5 used in the calculation of general State aid and the district's
6 Extension Limitation Ratio. If the Extension Limitation
7 Equalized Assessed Valuation of a school district as calculated
8 under this subsection (G)(3) is less than the district's
9 equalized assessed valuation as calculated pursuant to
10 subsections (G)(1) and (G)(2), then for purposes of calculating
11 the district's general State aid for the Budget Year pursuant
12 to subsection (E), that Extension Limitation Equalized
13 Assessed Valuation shall be utilized to calculate the
14 district's Available Local Resources under subsection (D).
15     Partial elementary unit districts created in accordance
16 with Article 11E of this Code shall not be eligible for the
17 adjustment in this subsection (G)(3) until the fifth year
18 following the effective date of the reorganization.
19     (4) For the purposes of calculating general State aid for
20 the 1999-2000 school year only, if a school district
21 experienced a triennial reassessment on the equalized assessed
22 valuation used in calculating its general State financial aid
23 apportionment for the 1998-1999 school year, the State Board of
24 Education shall calculate the Extension Limitation Equalized
25 Assessed Valuation that would have been used to calculate the
26 district's 1998-1999 general State aid. This amount shall equal

 

 

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1 the product of the equalized assessed valuation used to
2 calculate general State aid for the 1997-1998 school year and
3 the district's Extension Limitation Ratio. If the Extension
4 Limitation Equalized Assessed Valuation of the school district
5 as calculated under this paragraph (4) is less than the
6 district's equalized assessed valuation utilized in
7 calculating the district's 1998-1999 general State aid
8 allocation, then for purposes of calculating the district's
9 general State aid pursuant to paragraph (5) of subsection (E),
10 that Extension Limitation Equalized Assessed Valuation shall
11 be utilized to calculate the district's Available Local
12 Resources.
13     (5) For school districts having a majority of their
14 equalized assessed valuation in any county except Cook, DuPage,
15 Kane, Lake, McHenry, or Will, if the amount of general State
16 aid allocated to the school district for the 1999-2000 school
17 year under the provisions of subsection (E), (H), and (J) of
18 this Section is less than the amount of general State aid
19 allocated to the district for the 1998-1999 school year under
20 these subsections, then the general State aid of the district
21 for the 1999-2000 school year only shall be increased by the
22 difference between these amounts. The total payments made under
23 this paragraph (5) shall not exceed $14,000,000. Claims shall
24 be prorated if they exceed $14,000,000.
 
25 (H) Supplemental General State Aid.

 

 

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1     (1) In addition to the general State aid a school district
2 is allotted pursuant to subsection (E), qualifying school
3 districts shall receive a grant, paid in conjunction with a
4 district's payments of general State aid, for supplemental
5 general State aid based upon the concentration level of
6 children from low-income households within the school
7 district. Supplemental State aid grants provided for school
8 districts under this subsection shall be appropriated for
9 distribution to school districts as part of the same line item
10 in which the general State financial aid of school districts is
11 appropriated under this Section. If the appropriation in any
12 fiscal year for general State aid and supplemental general
13 State aid is insufficient to pay the amounts required under the
14 general State aid and supplemental general State aid
15 calculations, then the State Board of Education shall ensure
16 that each school district receives the full amount due for
17 general State aid and the remainder of the appropriation shall
18 be used for supplemental general State aid, which the State
19 Board of Education shall calculate and pay to eligible
20 districts on a prorated basis.
21     (1.5) This paragraph (1.5) applies only to those school
22 years preceding the 2003-2004 school year. For purposes of this
23 subsection (H), the term "Low-Income Concentration Level"
24 shall be the low-income eligible pupil count from the most
25 recently available federal census divided by the Average Daily
26 Attendance of the school district. If, however, (i) the

 

 

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1 percentage decrease from the 2 most recent federal censuses in
2 the low-income eligible pupil count of a high school district
3 with fewer than 400 students exceeds by 75% or more the
4 percentage change in the total low-income eligible pupil count
5 of contiguous elementary school districts, whose boundaries
6 are coterminous with the high school district, or (ii) a high
7 school district within 2 counties and serving 5 elementary
8 school districts, whose boundaries are coterminous with the
9 high school district, has a percentage decrease from the 2 most
10 recent federal censuses in the low-income eligible pupil count
11 and there is a percentage increase in the total low-income
12 eligible pupil count of a majority of the elementary school
13 districts in excess of 50% from the 2 most recent federal
14 censuses, then the high school district's low-income eligible
15 pupil count from the earlier federal census shall be the number
16 used as the low-income eligible pupil count for the high school
17 district, for purposes of this subsection (H). The changes made
18 to this paragraph (1) by Public Act 92-28 shall apply to
19 supplemental general State aid grants for school years
20 preceding the 2003-2004 school year that are paid in fiscal
21 year 1999 or thereafter and to any State aid payments made in
22 fiscal year 1994 through fiscal year 1998 pursuant to
23 subsection 1(n) of Section 18-8 of this Code (which was
24 repealed on July 1, 1998), and any high school district that is
25 affected by Public Act 92-28 is entitled to a recomputation of
26 its supplemental general State aid grant or State aid paid in

 

 

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1 any of those fiscal years. This recomputation shall not be
2 affected by any other funding.
3     (1.10) This paragraph (1.10) applies to the 2003-2004
4 school year and each school year thereafter. For purposes of
5 this subsection (H), the term "Low-Income Concentration Level"
6 shall, for each fiscal year, be the low-income eligible pupil
7 count as of July 1 of the immediately preceding fiscal year (as
8 determined by the Department of Human Services based on the
9 number of pupils who are eligible for at least one of the
10 following low income programs: Medicaid, KidCare, TANF, or Food
11 Stamps, excluding pupils who are eligible for services provided
12 by the Department of Children and Family Services, averaged
13 over the 2 immediately preceding fiscal years for fiscal year
14 2004 and over the 3 immediately preceding fiscal years for each
15 fiscal year thereafter) divided by the Average Daily Attendance
16 of the school district.
17     (2) Supplemental general State aid pursuant to this
18 subsection (H) shall be provided as follows for the 1998-1999,
19 1999-2000, and 2000-2001 school years only:
20         (a) For any school district with a Low Income
21     Concentration Level of at least 20% and less than 35%, the
22     grant for any school year shall be $800 multiplied by the
23     low income eligible pupil count.
24         (b) For any school district with a Low Income
25     Concentration Level of at least 35% and less than 50%, the
26     grant for the 1998-1999 school year shall be $1,100

 

 

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1     multiplied by the low income eligible pupil count.
2         (c) For any school district with a Low Income
3     Concentration Level of at least 50% and less than 60%, the
4     grant for the 1998-99 school year shall be $1,500
5     multiplied by the low income eligible pupil count.
6         (d) For any school district with a Low Income
7     Concentration Level of 60% or more, the grant for the
8     1998-99 school year shall be $1,900 multiplied by the low
9     income eligible pupil count.
10         (e) For the 1999-2000 school year, the per pupil amount
11     specified in subparagraphs (b), (c), and (d) immediately
12     above shall be increased to $1,243, $1,600, and $2,000,
13     respectively.
14         (f) For the 2000-2001 school year, the per pupil
15     amounts specified in subparagraphs (b), (c), and (d)
16     immediately above shall be $1,273, $1,640, and $2,050,
17     respectively.
18     (2.5) Supplemental general State aid pursuant to this
19 subsection (H) shall be provided as follows for the 2002-2003
20 school year:
21         (a) For any school district with a Low Income
22     Concentration Level of less than 10%, the grant for each
23     school year shall be $355 multiplied by the low income
24     eligible pupil count.
25         (b) For any school district with a Low Income
26     Concentration Level of at least 10% and less than 20%, the

 

 

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1     grant for each school year shall be $675 multiplied by the
2     low income eligible pupil count.
3         (c) For any school district with a Low Income
4     Concentration Level of at least 20% and less than 35%, the
5     grant for each school year shall be $1,330 multiplied by
6     the low income eligible pupil count.
7         (d) For any school district with a Low Income
8     Concentration Level of at least 35% and less than 50%, the
9     grant for each school year shall be $1,362 multiplied by
10     the low income eligible pupil count.
11         (e) For any school district with a Low Income
12     Concentration Level of at least 50% and less than 60%, the
13     grant for each school year shall be $1,680 multiplied by
14     the low income eligible pupil count.
15         (f) For any school district with a Low Income
16     Concentration Level of 60% or more, the grant for each
17     school year shall be $2,080 multiplied by the low income
18     eligible pupil count.
19     (2.10) Except as otherwise provided, supplemental general
20 State aid pursuant to this subsection (H) shall be provided as
21 follows for the 2003-2004 school year and each school year
22 thereafter:
23         (a) For any school district with a Low Income
24     Concentration Level of 15% or less, the grant for each
25     school year shall be $355 multiplied by the low income
26     eligible pupil count.

 

 

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1         (b) For any school district with a Low Income
2     Concentration Level greater than 15%, the grant for each
3     school year shall be $294.25 added to the product of $2,700
4     and the square of the Low Income Concentration Level, all
5     multiplied by the low income eligible pupil count.
6     For the 2003-2004 school year and each school year
7 thereafter through the 2008-2009 school year only, the grant
8 shall be no less than the grant for the 2002-2003 school year.
9 For the 2009-2010 school year only, the grant shall be no less
10 than the grant for the 2002-2003 school year multiplied by
11 0.66. For the 2010-2011 school year only, the grant shall be no
12 less than the grant for the 2002-2003 school year multiplied by
13 0.33. Notwithstanding the provisions of this paragraph to the
14 contrary, if for any school year supplemental general State aid
15 grants are prorated as provided in paragraph (1) of this
16 subsection (H), then the grants under this paragraph shall be
17 prorated.
18     For the 2003-2004 school year only, the grant shall be no
19 greater than the grant received during the 2002-2003 school
20 year added to the product of 0.25 multiplied by the difference
21 between the grant amount calculated under subsection (a) or (b)
22 of this paragraph (2.10), whichever is applicable, and the
23 grant received during the 2002-2003 school year. For the
24 2004-2005 school year only, the grant shall be no greater than
25 the grant received during the 2002-2003 school year added to
26 the product of 0.50 multiplied by the difference between the

 

 

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1 grant amount calculated under subsection (a) or (b) of this
2 paragraph (2.10), whichever is applicable, and the grant
3 received during the 2002-2003 school year. For the 2005-2006
4 school year only, the grant shall be no greater than the grant
5 received during the 2002-2003 school year added to the product
6 of 0.75 multiplied by the difference between the grant amount
7 calculated under subsection (a) or (b) of this paragraph
8 (2.10), whichever is applicable, and the grant received during
9 the 2002-2003 school year.
10     (3) School districts with an Average Daily Attendance of
11 more than 1,000 and less than 50,000 that qualify for
12 supplemental general State aid pursuant to this subsection
13 shall submit a plan to the State Board of Education prior to
14 October 30 of each year for the use of the funds resulting from
15 this grant of supplemental general State aid for the
16 improvement of instruction in which priority is given to
17 meeting the education needs of disadvantaged children. Such
18 plan shall be submitted in accordance with rules and
19 regulations promulgated by the State Board of Education.
20     (4) School districts with an Average Daily Attendance of
21 50,000 or more that qualify for supplemental general State aid
22 pursuant to this subsection shall be required to distribute
23 from funds available pursuant to this Section, no less than
24 $261,000,000 in accordance with the following requirements:
25         (a) The required amounts shall be distributed to the
26     attendance centers within the district in proportion to the

 

 

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1     number of pupils enrolled at each attendance center who are
2     eligible to receive free or reduced-price lunches or
3     breakfasts under the federal Child Nutrition Act of 1966
4     and under the National School Lunch Act during the
5     immediately preceding school year.
6         (b) The distribution of these portions of supplemental
7     and general State aid among attendance centers according to
8     these requirements shall not be compensated for or
9     contravened by adjustments of the total of other funds
10     appropriated to any attendance centers, and the Board of
11     Education shall utilize funding from one or several sources
12     in order to fully implement this provision annually prior
13     to the opening of school.
14         (c) Each attendance center shall be provided by the
15     school district a distribution of noncategorical funds and
16     other categorical funds to which an attendance center is
17     entitled under law in order that the general State aid and
18     supplemental general State aid provided by application of
19     this subsection supplements rather than supplants the
20     noncategorical funds and other categorical funds provided
21     by the school district to the attendance centers.
22         (d) Any funds made available under this subsection that
23     by reason of the provisions of this subsection are not
24     required to be allocated and provided to attendance centers
25     may be used and appropriated by the board of the district
26     for any lawful school purpose.

 

 

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1         (e) Funds received by an attendance center pursuant to
2     this subsection shall be used by the attendance center at
3     the discretion of the principal and local school council
4     for programs to improve educational opportunities at
5     qualifying schools through the following programs and
6     services: early childhood education, reduced class size or
7     improved adult to student classroom ratio, enrichment
8     programs, remedial assistance, attendance improvement, and
9     other educationally beneficial expenditures which
10     supplement the regular and basic programs as determined by
11     the State Board of Education. Funds provided shall not be
12     expended for any political or lobbying purposes as defined
13     by board rule.
14         (f) Each district subject to the provisions of this
15     subdivision (H)(4) shall submit an acceptable plan to meet
16     the educational needs of disadvantaged children, in
17     compliance with the requirements of this paragraph, to the
18     State Board of Education prior to July 15 of each year.
19     This plan shall be consistent with the decisions of local
20     school councils concerning the school expenditure plans
21     developed in accordance with part 4 of Section 34-2.3. The
22     State Board shall approve or reject the plan within 60 days
23     after its submission. If the plan is rejected, the district
24     shall give written notice of intent to modify the plan
25     within 15 days of the notification of rejection and then
26     submit a modified plan within 30 days after the date of the

 

 

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1     written notice of intent to modify. Districts may amend
2     approved plans pursuant to rules promulgated by the State
3     Board of Education.
4         Upon notification by the State Board of Education that
5     the district has not submitted a plan prior to July 15 or a
6     modified plan within the time period specified herein, the
7     State aid funds affected by that plan or modified plan
8     shall be withheld by the State Board of Education until a
9     plan or modified plan is submitted.
10         If the district fails to distribute State aid to
11     attendance centers in accordance with an approved plan, the
12     plan for the following year shall allocate funds, in
13     addition to the funds otherwise required by this
14     subsection, to those attendance centers which were
15     underfunded during the previous year in amounts equal to
16     such underfunding.
17         For purposes of determining compliance with this
18     subsection in relation to the requirements of attendance
19     center funding, each district subject to the provisions of
20     this subsection shall submit as a separate document by
21     December 1 of each year a report of expenditure data for
22     the prior year in addition to any modification of its
23     current plan. If it is determined that there has been a
24     failure to comply with the expenditure provisions of this
25     subsection regarding contravention or supplanting, the
26     State Superintendent of Education shall, within 60 days of

 

 

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1     receipt of the report, notify the district and any affected
2     local school council. The district shall within 45 days of
3     receipt of that notification inform the State
4     Superintendent of Education of the remedial or corrective
5     action to be taken, whether by amendment of the current
6     plan, if feasible, or by adjustment in the plan for the
7     following year. Failure to provide the expenditure report
8     or the notification of remedial or corrective action in a
9     timely manner shall result in a withholding of the affected
10     funds.
11         The State Board of Education shall promulgate rules and
12     regulations to implement the provisions of this
13     subsection. No funds shall be released under this
14     subdivision (H)(4) to any district that has not submitted a
15     plan that has been approved by the State Board of
16     Education.
 
17 (I) (Blank).
 
18 (J) Supplementary Grants in Aid.
19     (1) Notwithstanding any other provisions of this Section,
20 the amount of the aggregate general State aid in combination
21 with supplemental general State aid under this Section for
22 which each school district is eligible shall be no less than
23 the amount of the aggregate general State aid entitlement that
24 was received by the district under Section 18-8 (exclusive of

 

 

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1 amounts received under subsections 5(p) and 5(p-5) of that
2 Section) for the 1997-98 school year, pursuant to the
3 provisions of that Section as it was then in effect. If a
4 school district qualifies to receive a supplementary payment
5 made under this subsection (J), the amount of the aggregate
6 general State aid in combination with supplemental general
7 State aid under this Section which that district is eligible to
8 receive for each school year shall be no less than the amount
9 of the aggregate general State aid entitlement that was
10 received by the district under Section 18-8 (exclusive of
11 amounts received under subsections 5(p) and 5(p-5) of that
12 Section) for the 1997-1998 school year, pursuant to the
13 provisions of that Section as it was then in effect.
14     (2) If, as provided in paragraph (1) of this subsection
15 (J), a school district is to receive aggregate general State
16 aid in combination with supplemental general State aid under
17 this Section for the 1998-99 school year and any subsequent
18 school year that in any such school year is less than the
19 amount of the aggregate general State aid entitlement that the
20 district received for the 1997-98 school year, the school
21 district shall also receive, from a separate appropriation made
22 for purposes of this subsection (J), a supplementary payment
23 that is equal to the amount of the difference in the aggregate
24 State aid figures as described in paragraph (1).
25     (3) (Blank).
 

 

 

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1 (K) Grants to Laboratory and Alternative Schools.
2     In calculating the amount to be paid to the governing board
3 of a public university that operates a laboratory school under
4 this Section or to any alternative school that is operated by a
5 regional superintendent of schools, the State Board of
6 Education shall require by rule such reporting requirements as
7 it deems necessary.
8     As used in this Section, "laboratory school" means a public
9 school which is created and operated by a public university and
10 approved by the State Board of Education. The governing board
11 of a public university which receives funds from the State
12 Board under this subsection (K) may not increase the number of
13 students enrolled in its laboratory school from a single
14 district, if that district is already sending 50 or more
15 students, except under a mutual agreement between the school
16 board of a student's district of residence and the university
17 which operates the laboratory school. A laboratory school may
18 not have more than 1,000 students, excluding students with
19 disabilities in a special education program.
20     As used in this Section, "alternative school" means a
21 public school which is created and operated by a Regional
22 Superintendent of Schools and approved by the State Board of
23 Education. Such alternative schools may offer courses of
24 instruction for which credit is given in regular school
25 programs, courses to prepare students for the high school
26 equivalency testing program or vocational and occupational

 

 

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1 training. A regional superintendent of schools may contract
2 with a school district or a public community college district
3 to operate an alternative school. An alternative school serving
4 more than one educational service region may be established by
5 the regional superintendents of schools of the affected
6 educational service regions. An alternative school serving
7 more than one educational service region may be operated under
8 such terms as the regional superintendents of schools of those
9 educational service regions may agree.
10     Each laboratory and alternative school shall file, on forms
11 provided by the State Superintendent of Education, an annual
12 State aid claim which states the Average Daily Attendance of
13 the school's students by month. The best 3 months' Average
14 Daily Attendance shall be computed for each school. The general
15 State aid entitlement shall be computed by multiplying the
16 applicable Average Daily Attendance by the Foundation Level as
17 determined under this Section.
 
18 (L) Payments, Additional Grants in Aid and Other Requirements.
19     (1) For a school district operating under the financial
20 supervision of an Authority created under Article 34A, the
21 general State aid otherwise payable to that district under this
22 Section, but not the supplemental general State aid, shall be
23 reduced by an amount equal to the budget for the operations of
24 the Authority as certified by the Authority to the State Board
25 of Education, and an amount equal to such reduction shall be

 

 

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1 paid to the Authority created for such district for its
2 operating expenses in the manner provided in Section 18-11. The
3 remainder of general State school aid for any such district
4 shall be paid in accordance with Article 34A when that Article
5 provides for a disposition other than that provided by this
6 Article.
7     (2) (Blank).
8     (3) Summer school. Summer school payments shall be made as
9 provided in Section 18-4.3.
 
10 (M) Education Funding Advisory Board.
11     The Education Funding Advisory Board, hereinafter in this
12 subsection (M) referred to as the "Board", is hereby created.
13 The Board shall consist of 5 members who are appointed by the
14 Governor, by and with the advice and consent of the Senate. The
15 members appointed shall include representatives of education,
16 business, and the general public. One of the members so
17 appointed shall be designated by the Governor at the time the
18 appointment is made as the chairperson of the Board. The
19 initial members of the Board may be appointed any time after
20 the effective date of this amendatory Act of 1997. The regular
21 term of each member of the Board shall be for 4 years from the
22 third Monday of January of the year in which the term of the
23 member's appointment is to commence, except that of the 5
24 initial members appointed to serve on the Board, the member who
25 is appointed as the chairperson shall serve for a term that

 

 

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1 commences on the date of his or her appointment and expires on
2 the third Monday of January, 2002, and the remaining 4 members,
3 by lots drawn at the first meeting of the Board that is held
4 after all 5 members are appointed, shall determine 2 of their
5 number to serve for terms that commence on the date of their
6 respective appointments and expire on the third Monday of
7 January, 2001, and 2 of their number to serve for terms that
8 commence on the date of their respective appointments and
9 expire on the third Monday of January, 2000. All members
10 appointed to serve on the Board shall serve until their
11 respective successors are appointed and confirmed. Vacancies
12 shall be filled in the same manner as original appointments. If
13 a vacancy in membership occurs at a time when the Senate is not
14 in session, the Governor shall make a temporary appointment
15 until the next meeting of the Senate, when he or she shall
16 appoint, by and with the advice and consent of the Senate, a
17 person to fill that membership for the unexpired term. If the
18 Senate is not in session when the initial appointments are
19 made, those appointments shall be made as in the case of
20 vacancies.
21     The Education Funding Advisory Board shall be deemed
22 established, and the initial members appointed by the Governor
23 to serve as members of the Board shall take office, on the date
24 that the Governor makes his or her appointment of the fifth
25 initial member of the Board, whether those initial members are
26 then serving pursuant to appointment and confirmation or

 

 

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1 pursuant to temporary appointments that are made by the
2 Governor as in the case of vacancies.
3     The State Board of Education shall provide such staff
4 assistance to the Education Funding Advisory Board as is
5 reasonably required for the proper performance by the Board of
6 its responsibilities.
7     For school years after the 2000-2001 school year, the
8 Education Funding Advisory Board, in consultation with the
9 State Board of Education, shall make recommendations as
10 provided in this subsection (M) to the General Assembly for the
11 foundation level under subsection (B) subdivision (B)(3) of
12 this Section and for the supplemental general State aid grant
13 level under subsection (H) of this Section for districts with
14 high concentrations of children from poverty. The recommended
15 foundation level shall be determined based on a methodology
16 which incorporates the basic education expenditures of
17 low-spending schools exhibiting high academic performance. The
18 Education Funding Advisory Board shall make such
19 recommendations to the General Assembly on January 1 of odd
20 numbered years, beginning January 1, 2001.
 
21 (N) (Blank).
 
22 (O) References.
23     (1) References in other laws to the various subdivisions of
24 Section 18-8 as that Section existed before its repeal and

 

 

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1 replacement by this Section 18-8.05 shall be deemed to refer to
2 the corresponding provisions of this Section 18-8.05, to the
3 extent that those references remain applicable.
4     (2) References in other laws to State Chapter 1 funds shall
5 be deemed to refer to the supplemental general State aid
6 provided under subsection (H) of this Section.
 
7 (P) Public Act 93-838 and Public Act 93-808 make inconsistent
8 changes to this Section. Under Section 6 of the Statute on
9 Statutes there is an irreconcilable conflict between Public Act
10 93-808 and Public Act 93-838. Public Act 93-838, being the last
11 acted upon, is controlling. The text of Public Act 93-838 is
12 the law regardless of the text of Public Act 93-808.
13 (Source: P.A. 94-69, eff. 7-1-05; 94-438, eff. 8-4-05; 94-835,
14 eff. 6-6-06; 94-1019, eff. 7-10-06; 94-1105, eff. 6-1-07;
15 95-331, eff. 8-21-07; 95-644, eff. 10-12-07; 95-707, eff.
16 1-11-08; 95-744, eff. 7-18-08; 95-903, eff. 8-25-08; revised
17 9-5-08.)
 
18     (105 ILCS 5/19-3)  (from Ch. 122, par. 19-3)
19     Sec. 19-3. Boards of education. Any school district
20 governed by a board of education and having a population of not
21 more than 500,000 inhabitants, and not governed by a special
22 Act may borrow money for the purpose of building, equipping,
23 altering or repairing school buildings or purchasing or
24 improving school sites, or acquiring and equipping

 

 

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1 playgrounds, recreation grounds, athletic fields, and other
2 buildings or land used or useful for school purposes or for the
3 purpose of purchasing a site, with or without a building or
4 buildings thereon, or for the building of a house or houses on
5 such site, or for the building of a house or houses on the
6 school site of the school district, for residential purposes of
7 the superintendent, principal, or teachers of the school
8 district, and issue its negotiable coupon bonds therefor signed
9 by the president and secretary of the board, in denominations
10 of not less than $100 nor more than $5,000, payable at such
11 place and at such time or times, not exceeding 20 years from
12 date of issuance, as the board of education may prescribe, and
13 bearing interest at a rate not to exceed the maximum rate
14 authorized by the Bond Authorization Act, as amended at the
15 time of the making of the contract, payable annually,
16 semiannually or quarterly, but, with the exception of those
17 bonds described in Section 17-2.11c of this Code, no such bonds
18 shall be issued unless the proposition to issue them is
19 submitted to the voters of the district at a referendum held at
20 a regularly scheduled election after the board has certified
21 the proposition to the proper election authorities in
22 accordance with the general election law, a majority of all the
23 votes cast on the proposition is in favor of the proposition,
24 and notice of such bond referendum has been given either (i) in
25 accordance with the second paragraph of Section 12-1 of the
26 Election Code irrespective of whether such notice included any

 

 

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1 reference to the public question as it appeared on the ballot,
2 or (ii) for an election held on or after November 1, 1998, in
3 accordance with Section 12-5 of the Election Code, or (iii) by
4 publication of a true and legible copy of the specimen ballot
5 label containing the proposition in the form in which it
6 appeared or will appear on the official ballot label on the day
7 of the election at least 5 days before the day of the election
8 in at least one newspaper published in and having a general
9 circulation in the district, irrespective of any other
10 requirements of Article 12 or Section 24A-18 of the Election
11 Code, nor shall any residential site be acquired unless such
12 proposition to acquire a site is submitted to the voters of the
13 district at a referendum held at a regularly scheduled election
14 after the board has certified the proposition to the proper
15 election authorities in accordance with the general election
16 law and a majority of all the votes cast on the proposition is
17 in favor of the proposition. Nothing in this Act or in any
18 other law shall be construed to require the notice of the bond
19 referendum to be published over the name or title of the
20 election authority or the listing of maturity dates of any
21 bonds either in the notice of bond election or ballot used in
22 the bond election. The provisions of this Section concerning
23 notice of the bond referendum apply only to (i) consolidated
24 primary elections held prior to January 1, 2002 and the
25 consolidated election held on April 17, 2007 at which not less
26 than 60% of the voters voting on the bond proposition voted in

 

 

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1 favor of the bond proposition, and (ii) other elections held
2 before July 1, 1999; otherwise, notices required in connection
3 with the submission of public questions shall be as set forth
4 in Section 12-5 of the Election Code. Such proposition may be
5 initiated by resolution of the school board.
6     With respect to instruments for the payment of money issued
7 under this Section either before, on, or after the effective
8 date of this amendatory Act of 1989, it is and always has been
9 the intention of the General Assembly (i) that the Omnibus Bond
10 Acts are and always have been supplementary grants of power to
11 issue instruments in accordance with the Omnibus Bond Acts,
12 regardless of any provision of this Act that may appear to be
13 or to have been more restrictive than those Acts, (ii) that the
14 provisions of this Section are not a limitation on the
15 supplementary authority granted by the Omnibus Bond Acts, and
16 (iii) that instruments issued under this Section within the
17 supplementary authority granted by the Omnibus Bond Acts are
18 not invalid because of any provision of this Act that may
19 appear to be or to have been more restrictive than those Acts.
20     The proceeds of any bonds issued under authority of this
21 Section shall be deposited and accounted for separately within
22 the Site and Construction/Capital Improvements Fund.
23 (Source: P.A. 95-30, eff. 8-7-07.)
 
24     (105 ILCS 5/21-29)
25     Sec. 21-29. Salary Incentive Program for Hard-to-Staff

 

 

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1 Schools.
2     (a) The Salary Incentive Program for Hard-to-Staff Schools
3 is established to provide categorical funding for monetary
4 incentives and bonuses for teachers and school administrators
5 who are employed by school districts in schools designated as
6 hard-to-staff by the State Board of Education.
7     For the purposes of this Section, "hard-to-staff school"
8 means a public school in this State that ranks in the upper
9 third among public schools of its type (elementary, middle, or
10 secondary) in terms of rate of attrition of its teachers and
11 where 40% of its students are at or below the poverty line an
12 elementary, middle, or high school that is operated by a school
13 district and that ranks in the top 5% of schools in this State
14 in the average rate of teacher attrition over a 5-year period.
15 The State Board of Education shall allocate and distribute to
16 qualifying schools an amount as annually appropriated by the
17 General Assembly for the Salary Incentive Program for
18 Hard-to-Staff Schools. The State Board of Education's annual
19 budget must set out by separate line item the appropriation for
20 the program. Only teachers and principals who work full time
21 and for a full school year are eligible for the incentives and
22 bonuses.
23     (b) Unless otherwise provided by appropriation, each
24 school's annual allocation under the Salary Incentive Program
25 for Hard-to-Staff Schools shall be the sum of the following
26 incentives and bonuses:

 

 

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1         (1) An annual payment of $3,000 to be paid to each
2     certificated teacher employed as a school teacher by the
3     school district. The school shall distribute this payment
4     to each eligible teacher as a single payment or in not more
5     than 3 payments.
6         (2) An annual payment of $5,000 to each certificated
7     principal that is employed as a school principal by the
8     school district. The school shall distribute this payment
9     to each eligible principal as a single payment or in not
10     more than 3 payments.
11     If the appropriation in a given fiscal year is insufficient
12 to meet all needs under this Section, then claims under this
13 Section must be prorated proportionally.
14     (c) Each regional superintendent of schools shall provide
15 information about the Salary Incentive Program for
16 Hard-to-Staff Schools to each individual seeking to register or
17 renew a certificate.
18     (d) The State Board of Education, the Teachers' Retirement
19 System of the State of Illinois, and the Public School
20 Teachers' Pension and Retirement Fund of Chicago shall work
21 together to validate data for the purposes of this Section as
22 necessary.
23 (Source: P.A. 95-707, eff. 1-11-08; 95-938, eff. 8-29-08.)
 
24     (105 ILCS 5/21A-3 new)
25     Sec. 21A-3. Goals. The New Teacher Induction and Mentoring

 

 

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1 Program under this Article shall accomplish the following
2 goals:
3         (1) provide an effective transition into the teaching
4     career for first year and second-year teachers in Illinois;
5         (2) improve the educational performance of pupils
6     through improved training, information, and assistance for
7     new teachers;
8         (3) ensure professional success and retention of new
9     teachers;
10         (4) ensure that mentors provide intensive
11     individualized support and assistance to each
12     participating beginning teacher;
13         (5) ensure that an individual induction plan is in
14     place for each beginning teacher and is based on an ongoing
15     assessment of the development of the beginning teacher; and
16         (6) ensure continuous program improvement through
17     ongoing research, development and evaluation.
 
18     (105 ILCS 5/21A-5)
19     Sec. 21A-5. Definitions. In this Article:
20     "New teacher" or "beginning teacher" means the holder of an
21 Initial Teaching Certificate, as set forth in Section 21-2 of
22 this Code, an Alternative Teaching Certificate, or a
23 Transitional Bilingual Teaching Certificate, who is employed
24 by a public school and who has not previously participated in a
25 new teacher induction and mentoring program required by this

 

 

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1 Article, except as provided in Section 21A-25 of this Code.
2     "Public school" means any school operating pursuant to the
3 authority of this Code, including without limitation a school
4 district, a charter school, a cooperative or joint agreement
5 with a governing body or board of control, and a school
6 operated by a regional office of education or State agency.
7 (Source: P.A. 93-355, eff. 1-1-04.)
 
8     (105 ILCS 5/21A-10)
9     Sec. 21A-10. Development of program required. Prior to the
10 2011-2012 During the 2003-2004 school year, each public school
11 or 2 or more public schools acting jointly shall develop, in
12 conjunction with its exclusive representative or their
13 exclusive representatives, if any, a new teacher induction and
14 mentoring program that meets the requirements set forth in
15 Section 21A-20 of this Code to assist new teachers in
16 developing the skills and strategies necessary for
17 instructional excellence, provided that funding is made
18 available by the State Board of Education from an appropriation
19 made for this purpose. A public school that has an existing
20 induction and mentoring program that does not meet the
21 requirements set forth in Section 21A-20 of this Code may have
22 school years 2003-2004 and 2004-2005 to develop a program that
23 does meet those requirements and may receive funding as
24 described in Section 21A-25 of this Code, provided that the
25 funding is made available by the State Board of Education from

 

 

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1 an appropriation made for this purpose. A public school with
2 such an existing induction and mentoring program may receive
3 funding for the 2005-2006 school year for each new teacher in
4 the second year of a 2-year program that does not meet the
5 requirements set forth in Section 21A-20, as long as the public
6 school has established the required new program by the
7 beginning of that school year as described in Section 21A-15
8 and provided that funding is made available by the State Board
9 of Education from an appropriation made for this purpose as
10 described in Section 21A-25.
11 (Source: P.A. 93-355, eff. 1-1-04.)
 
12     (105 ILCS 5/21A-15)
13     Sec. 21A-15. When program is to be established and
14 implemented. Notwithstanding any other provisions of this
15 Code, by the beginning of the 2011-2012 2004-2005 school year
16 (or by the beginning of the 2005-2006 school year for a public
17 school that has been given an extension of time to develop a
18 program under Section 21A-10 of this Code), each public school
19 or 2 or more public schools acting jointly shall establish and
20 implement, in conjunction with its exclusive representative or
21 their exclusive representatives, if any, the new teacher
22 induction and mentoring program required to be developed under
23 Section 21A-10 of this Code, provided that funding is made
24 available by the State Board of Education, from an
25 appropriation made for this purpose, as described in Section

 

 

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1 21A-25 of this Code. A public school may contract with an
2 institution of higher education or other independent party to
3 assist in implementing the program.
4 (Source: P.A. 93-355, eff. 1-1-04.)
 
5     (105 ILCS 5/21A-20)
6     Sec. 21A-20. Program requirements. Each new teacher
7 induction and mentoring program must be based on a plan that at
8 least does all of the following:
9         (1) Assigns a mentor teacher to each new teacher to
10     provide structured and intensive mentoring, as defined by
11     the State Board of Education, for a period of at least 2
12     school years.
13         (1.5) Ensures mentors are:
14             (A) carefully selected from experienced, exemplary
15         teachers using a clearly articulated, well-defined,
16         explicit criteria and open processes that may involve
17         key school partners;
18             (B) rigorously trained using best practices in the
19         field to ensure they are well prepared to assume their
20         responsibilities and are consistently supported in
21         their efforts to assist beginning teachers;
22             (C) provided with sufficient release time from
23         teaching to allow them to meet their responsibilities
24         as mentors, including regular contacts with their
25         beginning teachers and frequent observations of their

 

 

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1         teaching practice; and
2             (D) equipped and selected to provide
3         classroom-focused and content-focused support whenever
4         possible.
5         (2) Aligns with the Illinois Professional Teaching
6     Standards, content area standards, and applicable local
7     school improvement and professional development plans, if
8     any.
9         (3) (Blank). Addresses all of the following elements
10     and how they will be provided:
11             (A) Mentoring and support of the new teacher.
12             (B) Professional development specifically designed
13         to ensure the growth of the new teacher's knowledge and
14         skills.
15             (C) Formative assessment designed to ensure
16         feedback and reflection, which must not be used in any
17         evaluation of the new teacher.
18         (4) Describes the role of mentor teachers, the criteria
19     and process for their selection, and how they will be
20     trained, provided that each mentor teacher shall
21     demonstrate the best practices in teaching his or her
22     respective field of practice. A mentor teacher may not
23     directly or indirectly participate in the evaluation of a
24     new teacher pursuant to Article 24A of this Code or the
25     evaluation procedure of the public school, unless the
26     school district and exclusive bargaining representative of

 

 

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1     its teachers negotiate and agree to it as part of an
2     alternative evaluation plan under Section 24A-5 or 24A-8 of
3     this Code.
4         (5) Provides ongoing professional development for both
5     beginning teachers and mentors.
6             (A) Beginning teachers shall participate in an
7         ongoing, formal network of novice colleagues for the
8         purpose of professional learning, problem-solving, and
9         mutual support. These regular learning opportunities
10         shall begin with an orientation to the induction and
11         mentoring program prior to the start of the school year
12         and continue throughout the academic year. The group
13         shall address issues of pedagogy, classroom management
14         and content knowledge, beginning teachers' assessed
15         needs, and local instructional needs or priorities.
16             (B) Mentors shall participate in an ongoing
17         professional learning community that supports their
18         practice and their use of mentoring tools, protocols,
19         and formative assessment in order to tailor and deepen
20         mentoring skills and advance induction practices,
21         support program implementation, provide for mentor
22         accountability in a supportive environment, and
23         provide support to each mentor's emerging leadership.
24         (6) Provides for ongoing assessment of beginning
25     teacher practice. Beginning teachers shall be subject to a
26     system of formative assessment in which the novice and

 

 

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1     mentor collaboratively collect and analyze multiple
2     sources of data and reflect upon classroom practice in an
3     ongoing process. This assessment system shall be based on
4     the Illinois Professional Teaching Standards (IPTS), the
5     IPTS Continuum of Teacher Development, or a nationally
6     recognized teaching framework, as well as evidence of
7     teacher practice, including student work. The assessment
8     information shall be used to determine the scope, focus,
9     and content of professional development activities that
10     are the basis of the beginning teacher's individual
11     learning plan. The program shall provide time to ensure
12     that the quality of the process (such as observations, data
13     collection, and reflective conversations) is not
14     compromised.
15         (7) Identifies clear roles and responsibilities for
16     both administrators and site mentor leaders who are to work
17     collectively to ensure induction practices are integrated
18     into existing professional development initiatives and to
19     secure assignments and establish working conditions for
20     beginning teachers that maximize their chances for
21     success. Administrators and site mentor leaders must have
22     sufficient knowledge and experience to understand the
23     needs of beginning teachers and the role of principals in
24     supporting each component of the program. Site
25     administrators must take time to meet and communicate
26     concerns with beginning teachers and their mentors.

 

 

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1         (8) Provides for ongoing evaluation of the New Teacher
2     Induction and Mentoring Program pursuant to Section 21A-30
3     of this Code.
4 (Source: P.A. 93-355, eff. 1-1-04.)
 
5     (105 ILCS 5/21A-25)
6     Sec. 21A-25. Funding. From a separate appropriation made
7 for the purposes of this Article, for each new teacher
8 participating in a new teacher induction and mentoring program
9 that meets the requirements set forth in Section 21A-20 of this
10 Code or in an existing program that is in the process of
11 transition to a program that meets those requirements, the
12 State Board of Education shall pay the public school $6,000
13 $1,200 annually for each of 2 school years for the purpose of
14 providing one or more of the following:
15         (1) Mentor teacher compensation.
16         (2) Mentor teacher training and other resources, or new
17     teacher training and other resources, or both.
18         (3) Release time, including costs associated with
19     replacing a mentor teacher or new teacher in his or her
20     regular classroom.
21         (4) Site-based program administration, not to exceed
22     10% of the total program cost.
23 However, if a new teacher, after participating in the new
24 teacher induction and mentoring program for one school year,
25 becomes employed by another public school, the State Board of

 

 

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1 Education shall pay the teacher's new school $6,000 $1,200 for
2 the second school year and the teacher shall continue to be a
3 new teacher as defined in this Article. Each public school
4 shall determine, in conjunction with its exclusive
5 representative, if any, how the $6,000 $1,200 per school year
6 for each new teacher shall be used, provided that if a mentor
7 teacher receives additional release time to support a new
8 teacher, the total workload of other teachers regularly
9 employed by the public school shall not increase in any
10 substantial manner. If the appropriation is insufficient to
11 cover the $6,000 $1,200 per school year for each new teacher,
12 public schools are not required to develop or implement the
13 program established by this Article. In the event of an
14 insufficient appropriation, a public school or 2 or more
15 schools acting jointly may submit an application for a grant
16 administered by the State Board of Education and awarded on a
17 competitive basis to establish a new teacher induction and
18 mentoring program that meets the criteria set forth in Section
19 21A-20 of this Code. The State Board of Education may retain up
20 to $1,000,000 of the appropriation for new teacher induction
21 and mentoring programs to train mentor teachers,
22 administrators, and other personnel, to provide best practices
23 information, and to conduct an evaluation of these programs'
24 impact and effectiveness.
25 (Source: P.A. 93-355, eff. 1-1-04.)
 

 

 

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1     (105 ILCS 5/21A-30)
2     Sec. 21A-30. Evaluation of programs. The State Board of
3 Education and the State Teacher Certification Board shall
4 jointly contract with an independent party to conduct a
5 comprehensive evaluation of new teacher induction and
6 mentoring programs established pursuant to this Article. The
7 first report of this evaluation shall be presented to the
8 General Assembly on or before January 1, 2013 2009. Subsequent
9 evaluations shall be conducted and reports presented to the
10 General Assembly on or before January 1 of every third year
11 thereafter. Additionally, the State Board of Education shall
12 prepare an annual program report for the General Assembly on or
13 before December 31 each year. It shall summarize local program
14 design, indicate the number of teachers served, and document
15 rates of new teacher attrition and retention.
16 (Source: P.A. 93-355, eff. 1-1-04.)
 
17     (105 ILCS 5/23-3)  (from Ch. 122, par. 23-3)
18     Sec. 23-3. Filing copy of constitution, by-laws and
19 amendments. Within 30 days after the adoption by any such
20 association of its constitution or by-laws or any amendment
21 thereto, it shall file a copy thereof, certified by its
22 president and executive director, with the Governor, the State
23 Superintendent of Education, Public Instruction and the
24 regional county superintendent of schools of each region county
25 in which it has any membership.

 

 

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1 (Source: Laws 1961, p. 31.)
 
2     (105 ILCS 5/23-5.5 new)
3     Sec. 23-5.5. Professional development and training. Any
4 such association shall offer professional development and
5 training to school board members on topics that include, but
6 are not limited to, basics of school finance, financial
7 oversight and accountability, labor law and collective
8 bargaining, ethics, duties and responsibilities of a school
9 board member, and board governance principles. Every school
10 board member is expected to receive at least 4 hours of
11 professional development and training per year.
 
12     (105 ILCS 5/23-6)  (from Ch. 122, par. 23-6)
13     Sec. 23-6. Annual report. Each association shall make an
14 annual report within 60 days after the close of its fiscal year
15 to the Governor, the State Board of Education and the regional
16 superintendent of schools of each region in which it has
17 members, setting forth the activities of the association for
18 the preceding fiscal year, the institutes held, the subjects
19 discussed, and the attendance, and shall furnish the Governor,
20 the State Board of Education and such regional superintendents
21 with copies of all publications sent to its members. The
22 association shall include the board training topics offered and
23 the number of school board members that availed themselves of
24 professional development and training.

 

 

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1 (Source: P.A. 81-1508.)
 
2     (105 ILCS 5/24-12)  (from Ch. 122, par. 24-12)
3     Sec. 24-12. Removal or dismissal of teachers in contractual
4 continued service.
5     (a) If a teacher in contractual continued service is
6 removed or dismissed as a result of a decision of the board to
7 decrease the number of teachers employed by the board or to
8 discontinue some particular type of teaching service, written
9 notice shall be mailed to the teacher and also given the
10 teacher either by certified mail, return receipt requested or
11 personal delivery with receipt at least 60 days before the end
12 of the school term, together with a statement of honorable
13 dismissal and the reason therefor. Any teacher dismissed as a
14 result of such decrease or discontinuance shall be paid all
15 earned compensation on or before the third business day
16 following the last day of pupil attendance in the regular
17 school term.
18     Whenever the number of honorable dismissal notices based
19 upon economic necessity exceeds 5 or 150% of the average number
20 of teachers honorably dismissed in the preceding 3 years,
21 whichever is more, then the board shall also hold a public
22 hearing on the question of the dismissals. Following the
23 hearing and board review, the action to approve any such
24 reduction shall require a majority vote of the board members.
25         (1) Each board shall, in consultation with any

 

 

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1     exclusive employee representatives, each year establish a
2     list, categorized by positions, showing the length of
3     continuing service of each teacher who is qualified to hold
4     any such certified positions, unless an alternative method
5     of determining a sequence of dismissal is established as
6     provided for in this Section, in which case a list shall be
7     made in accordance with the alternative method. Copies of
8     the list shall be distributed to the exclusive employee
9     representative on or before February 1 of each year.
10         In all such cases where a teacher in contractual
11     continued service is removed or dismissed as a result of a
12     decision of the board to decrease the number of teachers
13     employed by the board or to discontinue some particular
14     type of teaching service, and in all such cases the board
15     shall first remove or dismiss all teachers who have not
16     entered upon contractual continued service before removing
17     or dismissing any teacher who has entered upon contractual
18     continued service and who is legally qualified to hold a
19     position currently held by a teacher who has not entered
20     upon contractual continued service.
21         As between teachers who have entered upon contractual
22     continued service, the teacher or teachers with the shorter
23     length of continuing service with the district shall be
24     dismissed first unless an alternative method of
25     determining the sequence of dismissal is established in a
26     collective bargaining agreement or contract between the

 

 

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1     board and a professional faculty members' organization and
2     except that this provision shall not impair the operation
3     of any affirmative action program in the district,
4     regardless of whether it exists by operation of law or is
5     conducted on a voluntary basis by the board. Any teacher
6     dismissed as a result of such decrease or discontinuance
7     shall be paid all earned compensation on or before the
8     third business day following the last day of pupil
9     attendance in the regular school term.
10         (2) If the board has any vacancies for the following
11     school term or within one calendar year from the beginning
12     of the following school term, the positions thereby
13     becoming available shall be tendered to the teachers so
14     removed or dismissed so far as they are legally qualified
15     to hold such positions; provided, however, that if the
16     number of honorable dismissal notices based on economic
17     necessity exceeds 15% of the number of full time equivalent
18     positions filled by certified employees (excluding
19     principals and administrative personnel) during the
20     preceding school year, then if the board has any vacancies
21     for the following school term or within 2 calendar years
22     from the beginning of the following school term, the
23     positions so becoming available shall be tendered to the
24     teachers who were so notified and removed or dismissed
25     whenever they are legally qualified to hold such positions.
26     Each board shall, in consultation with any exclusive

 

 

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1     employee representatives, each year establish a list,
2     categorized by positions, showing the length of continuing
3     service of each teacher who is qualified to hold any such
4     positions, unless an alternative method of determining a
5     sequence of dismissal is established as provided for in
6     this Section, in which case a list shall be made in
7     accordance with the alternative method. Copies of the list
8     shall be distributed to the exclusive employee
9     representative on or before February 1 of each year.
10     Whenever the number of honorable dismissal notices based
11     upon economic necessity exceeds 5, or 150% of the average
12     number of teachers honorably dismissed in the preceding 3
13     years, whichever is more, then the board also shall hold a
14     public hearing on the question of the dismissals. Following
15     the hearing and board review the action to approve any such
16     reduction shall require a majority vote of the board
17     members.
18     (b)(1) If a dismissal or removal is sought for any other
19 reason or cause, including those under Section 10-22.4, the
20 board must first approve a motion containing specific charges
21 by a majority vote of all its members. Written notice of such
22 charges and the teacher's right to request a hearing shall be
23 mailed to the teacher and also given the teacher either by
24 certified mail, return receipt requested, or personal delivery
25 with receipt shall be served upon the teacher within 5 days of
26 the adoption of the motion. Such notice shall contain a bill of

 

 

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1