Sen. Andy Manar

Filed: 4/1/2014

 

 


 

 


 
09800SB0016sam001LRB098 04277 NHT 57820 a

1
AMENDMENT TO SENATE BILL 16

2    AMENDMENT NO. ______. Amend Senate Bill 16 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Primary State Aid Continuing Appropriation Act.
 
6    Section 5. Annual budget; recommendation. The Governor
7shall include a Common School Fund recommendation to the State
8Board of Education in the annual budgets for fiscal years 2016
9through 2018 sufficient to fund the primary State aid formula
10set forth in subsection (e) of Section 18-8.15 of the School
11Code and supplemental grants set forth in subsection (h) of
12Section 18-8.15 of the School Code.
 
13    Section 10. Primary State aid formula; funding. The General
14Assembly shall annually make Common School Fund appropriations
15to the State Board of Education in fiscal years 2016 through

 

 

09800SB0016sam001- 2 -LRB098 04277 NHT 57820 a

12018 sufficient to fund the primary State aid formula set forth
2in subsection (e) of Section 18-8.15 of the School Code and
3supplemental grants set forth in subsection (h) of Section
418-8.15 of the School Code.
 
5    Section 15. Continuing appropriation. If the General
6Assembly fails to make Common School Fund appropriations to the
7State Board of Education in fiscal years 2016 through 2018
8sufficient to fund the primary State aid formula set forth in
9subsection (e) of Section 18-8.15 of the School Code and
10supplemental grants set forth in subsection (h) of Section
1118-8.15 of the School Code, this Act shall constitute an
12irrevocable and continuing appropriation from the Common
13School Fund of all amounts necessary for that purpose.
 
14    Section 90. Repeal. This Act is repealed on June 30, 2018.
 
15    Section 905. The Economic Development Area Tax Increment
16Allocation Act is amended by changing Section 7 as follows:
 
17    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
18    Sec. 7. Creation of special tax allocation fund. If a
19municipality has adopted tax increment allocation financing
20for an economic development project area by ordinance, the
21county clerk has thereafter certified the "total initial
22equalized assessed value" of the taxable real property within

 

 

09800SB0016sam001- 3 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 4 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 5 -LRB098 04277 NHT 57820 a

1immediately thereafter pay those funds to the taxing districts
2having taxable property in the economic development project
3area in the same manner and proportion as the most recent
4distribution by the county collector to those taxing districts
5of real property taxes from real property in the economic
6development project area.
7    Upon the payment of all economic development project costs,
8retirement of obligations and the distribution of any excess
9monies pursuant to this Section the municipality shall adopt an
10ordinance dissolving the special tax allocation fund for the
11economic development project area, terminating the economic
12development project area, and terminating the use of tax
13increment allocation financing for the economic development
14project area. Thereafter the rates of the taxing districts
15shall be extended and taxes levied, collected and distributed
16in the manner applicable in the absence of the adoption of tax
17increment allocation financing.
18    Nothing in this Section shall be construed as relieving
19property in economic development project areas from being
20assessed as provided in the Property Tax Code, or as relieving
21owners of that property from paying a uniform rate of taxes, as
22required by Section 4 of Article IX of the Illinois
23Constitution.
24(Source: P.A. 98-463, eff. 8-16-13.)
 
25    Section 910. The State Finance Act is amended by changing

 

 

09800SB0016sam001- 6 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 7 -LRB098 04277 NHT 57820 a

1retirement systems; notwithstanding and in addition to the
2transfers authorized in subsection (c) of this Section, the
3fiscal year 2005 transfers authorized in this sentence may be
4made in an amount not to exceed 2% of the aggregate amount
5appropriated to an agency within the same treasury fund. During
6State fiscal year 2007, the Departments of Children and Family
7Services, Corrections, Human Services, and Juvenile Justice
8may transfer amounts among their respective appropriations
9within the same treasury fund for personal services, employee
10retirement contributions paid by employer, and State
11contributions to retirement systems. During State fiscal year
122010, the Department of Transportation may transfer amounts
13among their respective appropriations within the same treasury
14fund for personal services, employee retirement contributions
15paid by employer, and State contributions to retirement
16systems. During State fiscal years 2010 and 2014 only, an
17agency may transfer amounts among its respective
18appropriations within the same treasury fund for personal
19services, employee retirement contributions paid by employer,
20and State contributions to retirement systems.
21Notwithstanding, and in addition to, the transfers authorized
22in subsection (c) of this Section, these transfers may be made
23in an amount not to exceed 2% of the aggregate amount
24appropriated to an agency within the same treasury fund.
25    (a-3) Further, if an agency receives a separate
26appropriation for employee retirement contributions paid by

 

 

09800SB0016sam001- 8 -LRB098 04277 NHT 57820 a

1the employer, any transfer by that agency into an appropriation
2for personal services must be accompanied by a corresponding
3transfer into the appropriation for employee retirement
4contributions paid by the employer, in an amount sufficient to
5meet the employer share of the employee contributions required
6to be remitted to the retirement system.
7    (a-4) Long-Term Care Rebalancing. The Governor may
8designate amounts set aside for institutional services
9appropriated from the General Revenue Fund or any other State
10fund that receives monies for long-term care services to be
11transferred to all State agencies responsible for the
12administration of community-based long-term care programs,
13including, but not limited to, community-based long-term care
14programs administered by the Department of Healthcare and
15Family Services, the Department of Human Services, and the
16Department on Aging, provided that the Director of Healthcare
17and Family Services first certifies that the amounts being
18transferred are necessary for the purpose of assisting persons
19in or at risk of being in institutional care to transition to
20community-based settings, including the financial data needed
21to prove the need for the transfer of funds. The total amounts
22transferred shall not exceed 4% in total of the amounts
23appropriated from the General Revenue Fund or any other State
24fund that receives monies for long-term care services for each
25fiscal year. A notice of the fund transfer must be made to the
26General Assembly and posted at a minimum on the Department of

 

 

09800SB0016sam001- 9 -LRB098 04277 NHT 57820 a

1Healthcare and Family Services website, the Governor's Office
2of Management and Budget website, and any other website the
3Governor sees fit. These postings shall serve as notice to the
4General Assembly of the amounts to be transferred. Notice shall
5be given at least 30 days prior to transfer.
6    (b) In addition to the general transfer authority provided
7under subsection (c), the following agencies have the specific
8transfer authority granted in this subsection:
9    The Department of Healthcare and Family Services is
10authorized to make transfers representing savings attributable
11to not increasing grants due to the births of additional
12children from line items for payments of cash grants to line
13items for payments for employment and social services for the
14purposes outlined in subsection (f) of Section 4-2 of the
15Illinois Public Aid Code.
16    The Department of Children and Family Services is
17authorized to make transfers not exceeding 2% of the aggregate
18amount appropriated to it within the same treasury fund for the
19following line items among these same line items: Foster Home
20and Specialized Foster Care and Prevention, Institutions and
21Group Homes and Prevention, and Purchase of Adoption and
22Guardianship Services.
23    The Department on Aging is authorized to make transfers not
24exceeding 2% of the aggregate amount appropriated to it within
25the same treasury fund for the following Community Care Program
26line items among these same line items: purchase of services

 

 

09800SB0016sam001- 10 -LRB098 04277 NHT 57820 a

1covered by the Community Care Program and Comprehensive Case
2Coordination.
3    The State Treasurer is authorized to make transfers among
4line item appropriations from the Capital Litigation Trust
5Fund, with respect to costs incurred in fiscal years 2002 and
62003 only, when the balance remaining in one or more such line
7item appropriations is insufficient for the purpose for which
8the appropriation was made, provided that no such transfer may
9be made unless the amount transferred is no longer required for
10the purpose for which that appropriation was made.
11    The State Board of Education is authorized to make
12transfers from line item appropriations within the same
13treasury fund for General State Aid, and General State Aid -
14Hold Harmless, Primary State Aid, and Hold Harmless State
15Funding, provided that no such transfer may be made unless the
16amount transferred is no longer required for the purpose for
17which that appropriation was made, to the line item
18appropriation for Transitional Assistance when the balance
19remaining in such line item appropriation is insufficient for
20the purpose for which the appropriation was made.
21    The State Board of Education is authorized to make
22transfers between the following line item appropriations
23within the same treasury fund: Disabled Student
24Services/Materials (Section 14-13.01 of the School Code),
25Disabled Student Transportation Reimbursement (Section
2614-13.01 of the School Code), Disabled Student Tuition -

 

 

09800SB0016sam001- 11 -LRB098 04277 NHT 57820 a

1Private Tuition (Section 14-7.02 of the School Code),
2Extraordinary Special Education (Section 14-7.02b of the
3School Code), Reimbursement for Free Lunch/Breakfast Program,
4Summer School Payments (Section 18-4.3 of the School Code), and
5Transportation - Regular/Vocational Reimbursement (Section
629-5 of the School Code). Such transfers shall be made only
7when the balance remaining in one or more such line item
8appropriations is insufficient for the purpose for which the
9appropriation was made and provided that no such transfer may
10be made unless the amount transferred is no longer required for
11the purpose for which that appropriation was made.
12    The Department of Healthcare and Family Services is
13authorized to make transfers not exceeding 4% of the aggregate
14amount appropriated to it, within the same treasury fund, among
15the various line items appropriated for Medical Assistance.
16    (c) The sum of such transfers for an agency in a fiscal
17year shall not exceed 2% of the aggregate amount appropriated
18to it within the same treasury fund for the following objects:
19Personal Services; Extra Help; Student and Inmate
20Compensation; State Contributions to Retirement Systems; State
21Contributions to Social Security; State Contribution for
22Employee Group Insurance; Contractual Services; Travel;
23Commodities; Printing; Equipment; Electronic Data Processing;
24Operation of Automotive Equipment; Telecommunications
25Services; Travel and Allowance for Committed, Paroled and
26Discharged Prisoners; Library Books; Federal Matching Grants

 

 

09800SB0016sam001- 12 -LRB098 04277 NHT 57820 a

1for Student Loans; Refunds; Workers' Compensation,
2Occupational Disease, and Tort Claims; and, in appropriations
3to institutions of higher education, Awards and Grants.
4Notwithstanding the above, any amounts appropriated for
5payment of workers' compensation claims to an agency to which
6the authority to evaluate, administer and pay such claims has
7been delegated by the Department of Central Management Services
8may be transferred to any other expenditure object where such
9amounts exceed the amount necessary for the payment of such
10claims.
11    (c-1) Special provisions for State fiscal year 2003.
12Notwithstanding any other provision of this Section to the
13contrary, for State fiscal year 2003 only, transfers among line
14item appropriations to an agency from the same treasury fund
15may be made provided that the sum of such transfers for an
16agency in State fiscal year 2003 shall not exceed 3% of the
17aggregate amount appropriated to that State agency for State
18fiscal year 2003 for the following objects: personal services,
19except that no transfer may be approved which reduces the
20aggregate appropriations for personal services within an
21agency; extra help; student and inmate compensation; State
22contributions to retirement systems; State contributions to
23social security; State contributions for employee group
24insurance; contractual services; travel; commodities;
25printing; equipment; electronic data processing; operation of
26automotive equipment; telecommunications services; travel and

 

 

09800SB0016sam001- 13 -LRB098 04277 NHT 57820 a

1allowance for committed, paroled, and discharged prisoners;
2library books; federal matching grants for student loans;
3refunds; workers' compensation, occupational disease, and tort
4claims; and, in appropriations to institutions of higher
5education, awards and grants.
6    (c-2) Special provisions for State fiscal year 2005.
7Notwithstanding subsections (a), (a-2), and (c), for State
8fiscal year 2005 only, transfers may be made among any line
9item appropriations from the same or any other treasury fund
10for any objects or purposes, without limitation, when the
11balance remaining in one or more such line item appropriations
12is insufficient for the purpose for which the appropriation was
13made, provided that the sum of those transfers by a State
14agency shall not exceed 4% of the aggregate amount appropriated
15to that State agency for fiscal year 2005.
16    (d) Transfers among appropriations made to agencies of the
17Legislative and Judicial departments and to the
18constitutionally elected officers in the Executive branch
19require the approval of the officer authorized in Section 10 of
20this Act to approve and certify vouchers. Transfers among
21appropriations made to the University of Illinois, Southern
22Illinois University, Chicago State University, Eastern
23Illinois University, Governors State University, Illinois
24State University, Northeastern Illinois University, Northern
25Illinois University, Western Illinois University, the Illinois
26Mathematics and Science Academy and the Board of Higher

 

 

09800SB0016sam001- 14 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 15 -LRB098 04277 NHT 57820 a

1    14-13.01 of the School Code);
2        (2) Disabled Student Transportation Reimbursement
3    (subsection (b) of Section 14-13.01 of the School Code);
4        (3) Disabled Student Tuition - Private Tuition
5    (Section 14-7.02 of the School Code);
6        (4) Extraordinary Special Education (Section 14-7.02b
7    of the School Code);
8        (5) Reimbursement for Free Lunch/Breakfast Programs;
9        (6) Summer School Payments (Section 18-4.3 of the
10    School Code);
11        (7) Transportation - Regular/Vocational Reimbursement
12    (Section 29-5 of the School Code);
13        (8) Regular Education Reimbursement (Section 18-3 of
14    the School Code); and
15        (9) Special Education Reimbursement (Section 14-7.03
16    of the School Code).
17(Source: P.A. 97-689, eff. 7-1-12; 98-24, eff. 6-19-13.)
 
18    Section 915. The Property Tax Code is amended by changing
19Sections 18-200 and 18-249 as follows:
 
20    (35 ILCS 200/18-200)
21    Sec. 18-200. School Code. A school district's State aid
22shall not be reduced under the computation under subsections
235(a) through 5(h) of Part A of Section 18-8 of the School Code
24or under subsection (e) of Section 18-8.15 of the School Code

 

 

09800SB0016sam001- 16 -LRB098 04277 NHT 57820 a

1due to the operating tax rate falling from above the minimum
2requirement of that Section of the School Code to below the
3minimum requirement of that Section of the School Code due to
4the operation of this Law.
5(Source: P.A. 87-17; 88-455.)
 
6    (35 ILCS 200/18-249)
7    Sec. 18-249. Miscellaneous provisions.
8    (a) Certification of new property. For the 1994 levy year,
9the chief county assessment officer shall certify to the county
10clerk, after all changes by the board of review or board of
11appeals, as the case may be, the assessed value of new property
12by taxing district for the 1994 levy year under rules
13promulgated by the Department.
14    (b) School Code. A school district's State aid shall not be
15reduced under the computation under subsections 5(a) through
165(h) of Part A of Section 18-8 of the School Code or under
17subsection (e) of Section 18-8.15 of the School Code due to the
18operating tax rate falling from above the minimum requirement
19of that Section of the School Code to below the minimum
20requirement of that Section of the School Code due to the
21operation of this Law.
22    (c) Rules. The Department shall make and promulgate
23reasonable rules relating to the administration of the purposes
24and provisions of Sections 18-246 through 18-249 as may be
25necessary or appropriate.

 

 

09800SB0016sam001- 17 -LRB098 04277 NHT 57820 a

1(Source: P.A. 89-1, eff. 2-12-95.)
 
2    Section 920. The Innovation Development and Economy Act is
3amended by changing Section 33 as follows:
 
4    (50 ILCS 470/33)
5    Sec. 33. STAR Bonds School Improvement and Operations Trust
6Fund.
7    (a) The STAR Bonds School Improvement and Operations Trust
8Fund is created as a trust fund in the State treasury. Deposits
9into the Trust Fund shall be made as provided under this
10Section. Moneys in the Trust Fund shall be used by the
11Department of Revenue only for the purpose of making payments
12to school districts in educational service regions that include
13or are adjacent to the STAR bond district. Moneys in the Trust
14Fund are not subject to appropriation and shall be used solely
15as provided in this Section. All deposits into the Trust Fund
16shall be held in the Trust Fund by the State Treasurer as ex
17officio custodian separate and apart from all public moneys or
18funds of this State and shall be administered by the Department
19exclusively for the purposes set forth in this Section. All
20moneys in the Trust Fund shall be invested and reinvested by
21the State Treasurer. All interest accruing from these
22investments shall be deposited in the Trust Fund.
23    (b) Upon approval of a STAR bond district, the political
24subdivision shall immediately transmit to the county clerk of

 

 

09800SB0016sam001- 18 -LRB098 04277 NHT 57820 a

1the county in which the district is located a certified copy of
2the ordinance creating the district, a legal description of the
3district, a map of the district, identification of the year
4that the county clerk shall use for determining the total
5initial equalized assessed value of the district consistent
6with subsection (c), and a list of the parcel or tax
7identification number of each parcel of property included in
8the district.
9    (c) Upon approval of a STAR bond district, the county clerk
10immediately thereafter shall determine (i) the most recently
11ascertained equalized assessed value of each lot, block, tract,
12or parcel of real property within the STAR bond district, from
13which shall be deducted the homestead exemptions under Article
1415 of the Property Tax Code, which value shall be the initial
15equalized assessed value of each such piece of property, and
16(ii) the total equalized assessed value of all taxable real
17property within the district by adding together the most
18recently ascertained equalized assessed value of each taxable
19lot, block, tract, or parcel of real property within the
20district, from which shall be deducted the homestead exemptions
21under Article 15 of the Property Tax Code, and shall certify
22that amount as the total initial equalized assessed value of
23the taxable real property within the STAR bond district.
24    (d) In reference to any STAR bond district created within
25any political subdivision, and in respect to which the county
26clerk has certified the total initial equalized assessed value

 

 

09800SB0016sam001- 19 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 20 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 21 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 22 -LRB098 04277 NHT 57820 a

1notify the Department that an assessment appeal has been filed
2and the amount of the tax that would have been deposited in the
3STAR Bonds School Improvement and Operations Trust Fund. The
4county collector shall hold that amount in a separate fund
5until the appeal process is final. After the appeal process is
6finalized, the county collector shall transmit to the
7Department the amount of tax that remains, if any, after all
8required refunds are made. The Department shall pay any amount
9deposited into the Trust Fund under this Section in the same
10proportion as determined for payments for that taxable year
11under subsection (h).
12    (j) In any year that ad valorem taxes are allocated to the
13STAR Bonds School Improvement and Operations Trust Fund, that
14allocation shall not reduce or otherwise impact the school aid
15provided to any school district under the general State school
16aid formula provided for in Section 18-8.05 of the School Code
17or the primary State aid formula provided for in Section
1818-8.15 of the School Code.
19(Source: P.A. 96-939, eff. 6-24-10.)
 
20    Section 925. The County Economic Development Project Area
21Property Tax Allocation Act is amended by changing Section 7 as
22follows:
 
23    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
24    Sec. 7. Creation of special tax allocation fund. If a

 

 

09800SB0016sam001- 23 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 24 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 25 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 26 -LRB098 04277 NHT 57820 a

1property taxes from real property in the economic development
2project area.
3    Upon the payment of all economic development project costs,
4retirement of obligations and the distribution of any excess
5monies pursuant to this Section and not later than 23 years
6from the date of adoption of the ordinance adopting property
7tax allocation financing, the county shall adopt an ordinance
8dissolving the special tax allocation fund for the economic
9development project area and terminating the designation of the
10economic development project area as an economic development
11project area. Thereafter the rates of the taxing districts
12shall be extended and taxes levied, collected and distributed
13in the manner applicable in the absence of the adoption of
14property tax allocation financing.
15    Nothing in this Section shall be construed as relieving
16property in economic development project areas from being
17assessed as provided in the Property Tax Code or as relieving
18owners of that property from paying a uniform rate of taxes, as
19required by Section 4 of Article IX of the Illinois
20Constitution of 1970.
21(Source: P.A. 98-463, eff. 8-16-13.)
 
22    Section 930. The County Economic Development Project Area
23Tax Increment Allocation Act of 1991 is amended by changing
24Section 50 as follows:
 

 

 

09800SB0016sam001- 27 -LRB098 04277 NHT 57820 a

1    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
2    Sec. 50. Special tax allocation fund.
3    (a) If a county clerk has certified the "total initial
4equalized assessed value" of the taxable real property within
5an economic development project area in the manner provided in
6Section 45, each year after the date of the certification by
7the county clerk of the "total initial equalized assessed
8value", until economic development project costs and all county
9obligations financing economic development project costs have
10been paid, the ad valorem taxes, if any, arising from the
11levies upon the taxable real property in the economic
12development project area by taxing districts and tax rates
13determined in the manner provided in subsection (b) of Section
1445 shall be divided as follows:
15        (1) That portion of the taxes levied upon each taxable
16    lot, block, tract, or parcel of real property that is
17    attributable to the lower of the current equalized assessed
18    value or the initial equalized assessed value of each
19    taxable lot, block, tract, or parcel of real property
20    existing at the time tax increment financing was adopted
21    shall be allocated to (and when collected shall be paid by
22    the county collector to) the respective affected taxing
23    districts in the manner required by law in the absence of
24    the adoption of tax increment allocation financing.
25        (2) That portion, if any, of the taxes that is
26    attributable to the increase in the current equalized

 

 

09800SB0016sam001- 28 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 29 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 30 -LRB098 04277 NHT 57820 a

1    Section 935. The Illinois Municipal Code is amended by
2changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
3follows:
 
4    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
5    Sec. 11-74.4-3. Definitions. The following terms, wherever
6used or referred to in this Division 74.4 shall have the
7following respective meanings, unless in any case a different
8meaning clearly appears from the context.
9    (a) For any redevelopment project area that has been
10designated pursuant to this Section by an ordinance adopted
11prior to November 1, 1999 (the effective date of Public Act
1291-478), "blighted area" shall have the meaning set forth in
13this Section prior to that date.
14    On and after November 1, 1999, "blighted area" means any
15improved or vacant area within the boundaries of a
16redevelopment project area located within the territorial
17limits of the municipality where:
18        (1) If improved, industrial, commercial, and
19    residential buildings or improvements are detrimental to
20    the public safety, health, or welfare because of a
21    combination of 5 or more of the following factors, each of
22    which is (i) present, with that presence documented, to a
23    meaningful extent so that a municipality may reasonably
24    find that the factor is clearly present within the intent

 

 

09800SB0016sam001- 31 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 32 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 33 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 34 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 35 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 36 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 37 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 38 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 39 -LRB098 04277 NHT 57820 a

1        purpose.
2            (F) The area qualified as a blighted improved area
3        immediately prior to becoming vacant, unless there has
4        been substantial private investment in the immediately
5        surrounding area.
6    (b) For any redevelopment project area that has been
7designated pursuant to this Section by an ordinance adopted
8prior to November 1, 1999 (the effective date of Public Act
991-478), "conservation area" shall have the meaning set forth
10in this Section prior to that date.
11    On and after November 1, 1999, "conservation area" means
12any improved area within the boundaries of a redevelopment
13project area located within the territorial limits of the
14municipality in which 50% or more of the structures in the area
15have an age of 35 years or more. Such an area is not yet a
16blighted area but because of a combination of 3 or more of the
17following factors is detrimental to the public safety, health,
18morals or welfare and such an area may become a blighted area:
19        (1) Dilapidation. An advanced state of disrepair or
20    neglect of necessary repairs to the primary structural
21    components of buildings or improvements in such a
22    combination that a documented building condition analysis
23    determines that major repair is required or the defects are
24    so serious and so extensive that the buildings must be
25    removed.
26        (2) Obsolescence. The condition or process of falling

 

 

09800SB0016sam001- 40 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 41 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 42 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 43 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 44 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 45 -LRB098 04277 NHT 57820 a

1this subsection, if unemployment rate statistics for the
2municipality are not available, the unemployment rate in the
3municipality shall be deemed to be the same as the unemployment
4rate in the principal county in which the municipality is
5located.
6    (f) "Municipality" shall mean a city, village,
7incorporated town, or a township that is located in the
8unincorporated portion of a county with 3 million or more
9inhabitants, if the county adopted an ordinance that approved
10the township's redevelopment plan.
11    (g) "Initial Sales Tax Amounts" means the amount of taxes
12paid under the Retailers' Occupation Tax Act, Use Tax Act,
13Service Use Tax Act, the Service Occupation Tax Act, the
14Municipal Retailers' Occupation Tax Act, and the Municipal
15Service Occupation Tax Act by retailers and servicemen on
16transactions at places located in a State Sales Tax Boundary
17during the calendar year 1985.
18    (g-1) "Revised Initial Sales Tax Amounts" means the amount
19of taxes paid under the Retailers' Occupation Tax Act, Use Tax
20Act, Service Use Tax Act, the Service Occupation Tax Act, the
21Municipal Retailers' Occupation Tax Act, and the Municipal
22Service Occupation Tax Act by retailers and servicemen on
23transactions at places located within the State Sales Tax
24Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
25    (h) "Municipal Sales Tax Increment" means an amount equal
26to the increase in the aggregate amount of taxes paid to a

 

 

09800SB0016sam001- 46 -LRB098 04277 NHT 57820 a

1municipality from the Local Government Tax Fund arising from
2sales by retailers and servicemen within the redevelopment
3project area or State Sales Tax Boundary, as the case may be,
4for as long as the redevelopment project area or State Sales
5Tax Boundary, as the case may be, exist over and above the
6aggregate amount of taxes as certified by the Illinois
7Department of Revenue and paid under the Municipal Retailers'
8Occupation Tax Act and the Municipal Service Occupation Tax Act
9by retailers and servicemen, on transactions at places of
10business located in the redevelopment project area or State
11Sales Tax Boundary, as the case may be, during the base year
12which shall be the calendar year immediately prior to the year
13in which the municipality adopted tax increment allocation
14financing. For purposes of computing the aggregate amount of
15such taxes for base years occurring prior to 1985, the
16Department of Revenue shall determine the Initial Sales Tax
17Amounts for such taxes and deduct therefrom an amount equal to
184% of the aggregate amount of taxes per year for each year the
19base year is prior to 1985, but not to exceed a total deduction
20of 12%. The amount so determined shall be known as the
21"Adjusted Initial Sales Tax Amounts". For purposes of
22determining the Municipal Sales Tax Increment, the Department
23of Revenue shall for each period subtract from the amount paid
24to the municipality from the Local Government Tax Fund arising
25from sales by retailers and servicemen on transactions located
26in the redevelopment project area or the State Sales Tax

 

 

09800SB0016sam001- 47 -LRB098 04277 NHT 57820 a

1Boundary, as the case may be, the certified Initial Sales Tax
2Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
3Initial Sales Tax Amounts for the Municipal Retailers'
4Occupation Tax Act and the Municipal Service Occupation Tax
5Act. For the State Fiscal Year 1989, this calculation shall be
6made by utilizing the calendar year 1987 to determine the tax
7amounts received. For the State Fiscal Year 1990, this
8calculation shall be made by utilizing the period from January
91, 1988, until September 30, 1988, to determine the tax amounts
10received from retailers and servicemen pursuant to the
11Municipal Retailers' Occupation Tax and the Municipal Service
12Occupation Tax Act, which shall have deducted therefrom
13nine-twelfths of the certified Initial Sales Tax Amounts, the
14Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
15Tax Amounts as appropriate. For the State Fiscal Year 1991,
16this calculation shall be made by utilizing the period from
17October 1, 1988, to June 30, 1989, to determine the tax amounts
18received from retailers and servicemen pursuant to the
19Municipal Retailers' Occupation Tax and the Municipal Service
20Occupation Tax Act which shall have deducted therefrom
21nine-twelfths of the certified Initial Sales Tax Amounts,
22Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
23Tax Amounts as appropriate. For every State Fiscal Year
24thereafter, the applicable period shall be the 12 months
25beginning July 1 and ending June 30 to determine the tax
26amounts received which shall have deducted therefrom the

 

 

09800SB0016sam001- 48 -LRB098 04277 NHT 57820 a

1certified Initial Sales Tax Amounts, the Adjusted Initial Sales
2Tax Amounts or the Revised Initial Sales Tax Amounts, as the
3case may be.
4    (i) "Net State Sales Tax Increment" means the sum of the
5following: (a) 80% of the first $100,000 of State Sales Tax
6Increment annually generated within a State Sales Tax Boundary;
7(b) 60% of the amount in excess of $100,000 but not exceeding
8$500,000 of State Sales Tax Increment annually generated within
9a State Sales Tax Boundary; and (c) 40% of all amounts in
10excess of $500,000 of State Sales Tax Increment annually
11generated within a State Sales Tax Boundary. If, however, a
12municipality established a tax increment financing district in
13a county with a population in excess of 3,000,000 before
14January 1, 1986, and the municipality entered into a contract
15or issued bonds after January 1, 1986, but before December 31,
161986, to finance redevelopment project costs within a State
17Sales Tax Boundary, then the Net State Sales Tax Increment
18means, for the fiscal years beginning July 1, 1990, and July 1,
191991, 100% of the State Sales Tax Increment annually generated
20within a State Sales Tax Boundary; and notwithstanding any
21other provision of this Act, for those fiscal years the
22Department of Revenue shall distribute to those municipalities
23100% of their Net State Sales Tax Increment before any
24distribution to any other municipality and regardless of
25whether or not those other municipalities will receive 100% of
26their Net State Sales Tax Increment. For Fiscal Year 1999, and

 

 

09800SB0016sam001- 49 -LRB098 04277 NHT 57820 a

1every year thereafter until the year 2007, for any municipality
2that has not entered into a contract or has not issued bonds
3prior to June 1, 1988 to finance redevelopment project costs
4within a State Sales Tax Boundary, the Net State Sales Tax
5Increment shall be calculated as follows: By multiplying the
6Net State Sales Tax Increment by 90% in the State Fiscal Year
71999; 80% in the State Fiscal Year 2000; 70% in the State
8Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
9State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
10in the State Fiscal Year 2005; 20% in the State Fiscal Year
112006; and 10% in the State Fiscal Year 2007. No payment shall
12be made for State Fiscal Year 2008 and thereafter.
13    Municipalities that issued bonds in connection with a
14redevelopment project in a redevelopment project area within
15the State Sales Tax Boundary prior to July 29, 1991, or that
16entered into contracts in connection with a redevelopment
17project in a redevelopment project area before June 1, 1988,
18shall continue to receive their proportional share of the
19Illinois Tax Increment Fund distribution until the date on
20which the redevelopment project is completed or terminated. If,
21however, a municipality that issued bonds in connection with a
22redevelopment project in a redevelopment project area within
23the State Sales Tax Boundary prior to July 29, 1991 retires the
24bonds prior to June 30, 2007 or a municipality that entered
25into contracts in connection with a redevelopment project in a
26redevelopment project area before June 1, 1988 completes the

 

 

09800SB0016sam001- 50 -LRB098 04277 NHT 57820 a

1contracts prior to June 30, 2007, then so long as the
2redevelopment project is not completed or is not terminated,
3the Net State Sales Tax Increment shall be calculated,
4beginning on the date on which the bonds are retired or the
5contracts are completed, as follows: By multiplying the Net
6State Sales Tax Increment by 60% in the State Fiscal Year 2002;
750% in the State Fiscal Year 2003; 40% in the State Fiscal Year
82004; 30% in the State Fiscal Year 2005; 20% in the State
9Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
10payment shall be made for State Fiscal Year 2008 and
11thereafter. Refunding of any bonds issued prior to July 29,
121991, shall not alter the Net State Sales Tax Increment.
13    (j) "State Utility Tax Increment Amount" means an amount
14equal to the aggregate increase in State electric and gas tax
15charges imposed on owners and tenants, other than residential
16customers, of properties located within the redevelopment
17project area under Section 9-222 of the Public Utilities Act,
18over and above the aggregate of such charges as certified by
19the Department of Revenue and paid by owners and tenants, other
20than residential customers, of properties within the
21redevelopment project area during the base year, which shall be
22the calendar year immediately prior to the year of the adoption
23of the ordinance authorizing tax increment allocation
24financing.
25    (k) "Net State Utility Tax Increment" means the sum of the
26following: (a) 80% of the first $100,000 of State Utility Tax

 

 

09800SB0016sam001- 51 -LRB098 04277 NHT 57820 a

1Increment annually generated by a redevelopment project area;
2(b) 60% of the amount in excess of $100,000 but not exceeding
3$500,000 of the State Utility Tax Increment annually generated
4by a redevelopment project area; and (c) 40% of all amounts in
5excess of $500,000 of State Utility Tax Increment annually
6generated by a redevelopment project area. For the State Fiscal
7Year 1999, and every year thereafter until the year 2007, for
8any municipality that has not entered into a contract or has
9not issued bonds prior to June 1, 1988 to finance redevelopment
10project costs within a redevelopment project area, the Net
11State Utility Tax Increment shall be calculated as follows: By
12multiplying the Net State Utility Tax Increment by 90% in the
13State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
14in the State Fiscal Year 2001; 60% in the State Fiscal Year
152002; 50% in the State Fiscal Year 2003; 40% in the State
16Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
17State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
18No payment shall be made for the State Fiscal Year 2008 and
19thereafter.
20    Municipalities that issue bonds in connection with the
21redevelopment project during the period from June 1, 1988 until
223 years after the effective date of this Amendatory Act of 1988
23shall receive the Net State Utility Tax Increment, subject to
24appropriation, for 15 State Fiscal Years after the issuance of
25such bonds. For the 16th through the 20th State Fiscal Years
26after issuance of the bonds, the Net State Utility Tax

 

 

09800SB0016sam001- 52 -LRB098 04277 NHT 57820 a

1Increment shall be calculated as follows: By multiplying the
2Net State Utility Tax Increment by 90% in year 16; 80% in year
317; 70% in year 18; 60% in year 19; and 50% in year 20.
4Refunding of any bonds issued prior to June 1, 1988, shall not
5alter the revised Net State Utility Tax Increment payments set
6forth above.
7    (l) "Obligations" mean bonds, loans, debentures, notes,
8special certificates or other evidence of indebtedness issued
9by the municipality to carry out a redevelopment project or to
10refund outstanding obligations.
11    (m) "Payment in lieu of taxes" means those estimated tax
12revenues from real property in a redevelopment project area
13derived from real property that has been acquired by a
14municipality which according to the redevelopment project or
15plan is to be used for a private use which taxing districts
16would have received had a municipality not acquired the real
17property and adopted tax increment allocation financing and
18which would result from levies made after the time of the
19adoption of tax increment allocation financing to the time the
20current equalized value of real property in the redevelopment
21project area exceeds the total initial equalized value of real
22property in said area.
23    (n) "Redevelopment plan" means the comprehensive program
24of the municipality for development or redevelopment intended
25by the payment of redevelopment project costs to reduce or
26eliminate those conditions the existence of which qualified the

 

 

09800SB0016sam001- 53 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 54 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 55 -LRB098 04277 NHT 57820 a

111-74.4-5. No redevelopment plan shall be adopted unless a
2municipality complies with all of the following requirements:
3        (1) The municipality finds that the redevelopment
4    project area on the whole has not been subject to growth
5    and development through investment by private enterprise
6    and would not reasonably be anticipated to be developed
7    without the adoption of the redevelopment plan.
8        (2) The municipality finds that the redevelopment plan
9    and project conform to the comprehensive plan for the
10    development of the municipality as a whole, or, for
11    municipalities with a population of 100,000 or more,
12    regardless of when the redevelopment plan and project was
13    adopted, the redevelopment plan and project either: (i)
14    conforms to the strategic economic development or
15    redevelopment plan issued by the designated planning
16    authority of the municipality, or (ii) includes land uses
17    that have been approved by the planning commission of the
18    municipality.
19        (3) The redevelopment plan establishes the estimated
20    dates of completion of the redevelopment project and
21    retirement of obligations issued to finance redevelopment
22    project costs. Those dates may not be later than the dates
23    set forth under Section 11-74.4-3.5.
24        A municipality may by municipal ordinance amend an
25    existing redevelopment plan to conform to this paragraph
26    (3) as amended by Public Act 91-478, which municipal

 

 

09800SB0016sam001- 56 -LRB098 04277 NHT 57820 a

1    ordinance may be adopted without further hearing or notice
2    and without complying with the procedures provided in this
3    Act pertaining to an amendment to or the initial approval
4    of a redevelopment plan and project and designation of a
5    redevelopment project area.
6        (3.5) The municipality finds, in the case of an
7    industrial park conservation area, also that the
8    municipality is a labor surplus municipality and that the
9    implementation of the redevelopment plan will reduce
10    unemployment, create new jobs and by the provision of new
11    facilities enhance the tax base of the taxing districts
12    that extend into the redevelopment project area.
13        (4) If any incremental revenues are being utilized
14    under Section 8(a)(1) or 8(a)(2) of this Act in
15    redevelopment project areas approved by ordinance after
16    January 1, 1986, the municipality finds: (a) that the
17    redevelopment project area would not reasonably be
18    developed without the use of such incremental revenues, and
19    (b) that such incremental revenues will be exclusively
20    utilized for the development of the redevelopment project
21    area.
22        (5) If the redevelopment plan will not result in
23    displacement of residents from 10 or more inhabited
24    residential units, and the municipality certifies in the
25    plan that such displacement will not result from the plan,
26    a housing impact study need not be performed. If, however,

 

 

09800SB0016sam001- 57 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 58 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 59 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 60 -LRB098 04277 NHT 57820 a

1    (o) "Redevelopment project" means any public and private
2development project in furtherance of the objectives of a
3redevelopment plan. On and after November 1, 1999 (the
4effective date of Public Act 91-478), no redevelopment plan may
5be approved or amended that includes the development of vacant
6land (i) with a golf course and related clubhouse and other
7facilities or (ii) designated by federal, State, county, or
8municipal government as public land for outdoor recreational
9activities or for nature preserves and used for that purpose
10within 5 years prior to the adoption of the redevelopment plan.
11For the purpose of this subsection, "recreational activities"
12is limited to mean camping and hunting.
13    (p) "Redevelopment project area" means an area designated
14by the municipality, which is not less in the aggregate than 1
151/2 acres and in respect to which the municipality has made a
16finding that there exist conditions which cause the area to be
17classified as an industrial park conservation area or a
18blighted area or a conservation area, or a combination of both
19blighted areas and conservation areas.
20    (p-1) Notwithstanding any provision of this Act to the
21contrary, on and after August 25, 2009 (the effective date of
22Public Act 96-680), a redevelopment project area may include
23areas within a one-half mile radius of an existing or proposed
24Regional Transportation Authority Suburban Transit Access
25Route (STAR Line) station without a finding that the area is
26classified as an industrial park conservation area, a blighted

 

 

09800SB0016sam001- 61 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 62 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 63 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 64 -LRB098 04277 NHT 57820 a

1    building as provided under paragraph (3) of subsection (q)
2    of Section 11-74.4-3 unless either (i) the construction of
3    the new municipal building implements a redevelopment
4    project that was included in a redevelopment plan that was
5    adopted by the municipality prior to November 1, 1999 or
6    (ii) the municipality makes a reasonable determination in
7    the redevelopment plan, supported by information that
8    provides the basis for that determination, that the new
9    municipal building is required to meet an increase in the
10    need for public safety purposes anticipated to result from
11    the implementation of the redevelopment plan;
12        (5) Costs of job training and retraining projects,
13    including the cost of "welfare to work" programs
14    implemented by businesses located within the redevelopment
15    project area;
16        (6) Financing costs, including but not limited to all
17    necessary and incidental expenses related to the issuance
18    of obligations and which may include payment of interest on
19    any obligations issued hereunder including interest
20    accruing during the estimated period of construction of any
21    redevelopment project for which such obligations are
22    issued and for not exceeding 36 months thereafter and
23    including reasonable reserves related thereto;
24        (7) To the extent the municipality by written agreement
25    accepts and approves the same, all or a portion of a taxing
26    district's capital costs resulting from the redevelopment

 

 

09800SB0016sam001- 65 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 66 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 67 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 68 -LRB098 04277 NHT 57820 a

1        following annual limitations:
2                (i) for unit school districts, no more than 40%
3            of the total amount of property tax increment
4            revenue produced by those housing units that have
5            received tax increment finance assistance under
6            this Act;
7                (ii) for elementary school districts, no more
8            than 27% of the total amount of property tax
9            increment revenue produced by those housing units
10            that have received tax increment finance
11            assistance under this Act; and
12                (iii) for secondary school districts, no more
13            than 13% of the total amount of property tax
14            increment revenue produced by those housing units
15            that have received tax increment finance
16            assistance under this Act.
17            (C) For any school district in a municipality with
18        a population in excess of 1,000,000, the following
19        restrictions shall apply to the reimbursement of
20        increased costs under this paragraph (7.5):
21                (i) no increased costs shall be reimbursed
22            unless the school district certifies that each of
23            the schools affected by the assisted housing
24            project is at or over its student capacity;
25                (ii) the amount reimbursable shall be reduced
26            by the value of any land donated to the school

 

 

09800SB0016sam001- 69 -LRB098 04277 NHT 57820 a

1            district by the municipality or developer, and by
2            the value of any physical improvements made to the
3            schools by the municipality or developer; and
4                (iii) the amount reimbursed may not affect
5            amounts otherwise obligated by the terms of any
6            bonds, notes, or other funding instruments, or the
7            terms of any redevelopment agreement.
8        Any school district seeking payment under this
9        paragraph (7.5) shall, after July 1 and before
10        September 30 of each year, provide the municipality
11        with reasonable evidence to support its claim for
12        reimbursement before the municipality shall be
13        required to approve or make the payment to the school
14        district. If the school district fails to provide the
15        information during this period in any year, it shall
16        forfeit any claim to reimbursement for that year.
17        School districts may adopt a resolution waiving the
18        right to all or a portion of the reimbursement
19        otherwise required by this paragraph (7.5). By
20        acceptance of this reimbursement the school district
21        waives the right to directly or indirectly set aside,
22        modify, or contest in any manner the establishment of
23        the redevelopment project area or projects;
24        (7.7) For redevelopment project areas designated (or
25    redevelopment project areas amended to add or increase the
26    number of tax-increment-financing assisted housing units)

 

 

09800SB0016sam001- 70 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 71 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 72 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 73 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 74 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 75 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 76 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 77 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 78 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 79 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 80 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 81 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 82 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 83 -LRB098 04277 NHT 57820 a

1subdivision requirements of the Plat Act, land is subdivided
2when the original plat of the proposed Redevelopment Project
3Area or relevant portion thereof has been properly certified,
4acknowledged, approved, and recorded or filed in accordance
5with the Plat Act and a preliminary plat, if any, for any
6subsequent phases of the proposed Redevelopment Project Area or
7relevant portion thereof has been properly approved and filed
8in accordance with the applicable ordinance of the
9municipality.
10    (w) "Annual Total Increment" means the sum of each
11municipality's annual Net Sales Tax Increment and each
12municipality's annual Net Utility Tax Increment. The ratio of
13the Annual Total Increment of each municipality to the Annual
14Total Increment for all municipalities, as most recently
15calculated by the Department, shall determine the proportional
16shares of the Illinois Tax Increment Fund to be distributed to
17each municipality.
18    (x) "LEED certified" means any certification level of
19construction elements by a qualified Leadership in Energy and
20Environmental Design Accredited Professional as determined by
21the U.S. Green Building Council.
22    (y) "Green Globes certified" means any certification level
23of construction elements by a qualified Green Globes
24Professional as determined by the Green Building Initiative.
25(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
2696-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.

 

 

09800SB0016sam001- 84 -LRB098 04277 NHT 57820 a

11-1-12.)
 
2    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
3    Sec. 11-74.4-8. Tax increment allocation financing. A
4municipality may not adopt tax increment financing in a
5redevelopment project area after the effective date of this
6amendatory Act of 1997 that will encompass an area that is
7currently included in an enterprise zone created under the
8Illinois Enterprise Zone Act unless that municipality,
9pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
10amends the enterprise zone designating ordinance to limit the
11eligibility for tax abatements as provided in Section 5.4.1 of
12the Illinois Enterprise Zone Act. A municipality, at the time a
13redevelopment project area is designated, may adopt tax
14increment allocation financing by passing an ordinance
15providing that the ad valorem taxes, if any, arising from the
16levies upon taxable real property in such redevelopment project
17area by taxing districts and tax rates determined in the manner
18provided in paragraph (c) of Section 11-74.4-9 each year after
19the effective date of the ordinance until redevelopment project
20costs and all municipal obligations financing redevelopment
21project costs incurred under this Division have been paid shall
22be divided as follows:
23    (a) That portion of taxes levied upon each taxable lot,
24block, tract or parcel of real property which is attributable
25to the lower of the current equalized assessed value or the

 

 

09800SB0016sam001- 85 -LRB098 04277 NHT 57820 a

1initial equalized assessed value of each such taxable lot,
2block, tract or parcel of real property in the redevelopment
3project area shall be allocated to and when collected shall be
4paid by the county collector to the respective affected taxing
5districts in the manner required by law in the absence of the
6adoption of tax increment allocation financing.
7    (b) Except from a tax levied by a township to retire bonds
8issued to satisfy court-ordered damages, that portion, if any,
9of such taxes which is attributable to the increase in the
10current equalized assessed valuation of each taxable lot,
11block, tract or parcel of real property in the redevelopment
12project area over and above the initial equalized assessed
13value of each property in the project area shall be allocated
14to and when collected shall be paid to the municipal treasurer
15who shall deposit said taxes into a special fund called the
16special tax allocation fund of the municipality for the purpose
17of paying redevelopment project costs and obligations incurred
18in the payment thereof. In any county with a population of
193,000,000 or more that has adopted a procedure for collecting
20taxes that provides for one or more of the installments of the
21taxes to be billed and collected on an estimated basis, the
22municipal treasurer shall be paid for deposit in the special
23tax allocation fund of the municipality, from the taxes
24collected from estimated bills issued for property in the
25redevelopment project area, the difference between the amount
26actually collected from each taxable lot, block, tract, or

 

 

09800SB0016sam001- 86 -LRB098 04277 NHT 57820 a

1parcel of real property within the redevelopment project area
2and an amount determined by multiplying the rate at which taxes
3were last extended against the taxable lot, block, track, or
4parcel of real property in the manner provided in subsection
5(c) of Section 11-74.4-9 by the initial equalized assessed
6value of the property divided by the number of installments in
7which real estate taxes are billed and collected within the
8county; provided that the payments on or before December 31,
91999 to a municipal treasurer shall be made only if each of the
10following conditions are met:
11        (1) The total equalized assessed value of the
12    redevelopment project area as last determined was not less
13    than 175% of the total initial equalized assessed value.
14        (2) Not more than 50% of the total equalized assessed
15    value of the redevelopment project area as last determined
16    is attributable to a piece of property assigned a single
17    real estate index number.
18        (3) The municipal clerk has certified to the county
19    clerk that the municipality has issued its obligations to
20    which there has been pledged the incremental property taxes
21    of the redevelopment project area or taxes levied and
22    collected on any or all property in the municipality or the
23    full faith and credit of the municipality to pay or secure
24    payment for all or a portion of the redevelopment project
25    costs. The certification shall be filed annually no later
26    than September 1 for the estimated taxes to be distributed

 

 

09800SB0016sam001- 87 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 88 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 89 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 90 -LRB098 04277 NHT 57820 a

1    shall be allocated to and when collected shall be paid to
2    the municipal Treasurer, who shall deposit said taxes into
3    a special fund called the special tax allocation fund of
4    the municipality for the purpose of paying redevelopment
5    project costs and obligations incurred in the payment
6    thereof.
7    The municipality may pledge in the ordinance the funds in
8and to be deposited in the special tax allocation fund for the
9payment of such costs and obligations. No part of the current
10equalized assessed valuation of each property in the
11redevelopment project area attributable to any increase above
12the total initial equalized assessed value, or the total
13initial equalized assessed value as adjusted, of such
14properties shall be used in calculating the general State
15school aid formula, provided for in Section 18-8 of the School
16Code, or the primary State aid formula, provided for in Section
1718-8.15 of the School Code, until such time as all
18redevelopment project costs have been paid as provided for in
19this Section.
20    Whenever a municipality issues bonds for the purpose of
21financing redevelopment project costs, such municipality may
22provide by ordinance for the appointment of a trustee, which
23may be any trust company within the State, and for the
24establishment of such funds or accounts to be maintained by
25such trustee as the municipality shall deem necessary to
26provide for the security and payment of the bonds. If such

 

 

09800SB0016sam001- 91 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 92 -LRB098 04277 NHT 57820 a

1redevelopment project area in the same manner and proportion as
2the most recent distribution by the county collector to the
3affected districts of real property taxes from real property in
4the redevelopment project area.
5    Upon the payment of all redevelopment project costs, the
6retirement of obligations, the distribution of any excess
7monies pursuant to this Section, and final closing of the books
8and records of the redevelopment project area, the municipality
9shall adopt an ordinance dissolving the special tax allocation
10fund for the redevelopment project area and terminating the
11designation of the redevelopment project area as a
12redevelopment project area. Title to real or personal property
13and public improvements acquired by or for the municipality as
14a result of the redevelopment project and plan shall vest in
15the municipality when acquired and shall continue to be held by
16the municipality after the redevelopment project area has been
17terminated. Municipalities shall notify affected taxing
18districts prior to November 1 if the redevelopment project area
19is to be terminated by December 31 of that same year. If a
20municipality extends estimated dates of completion of a
21redevelopment project and retirement of obligations to finance
22a redevelopment project, as allowed by this amendatory Act of
231993, that extension shall not extend the property tax
24increment allocation financing authorized by this Section.
25Thereafter the rates of the taxing districts shall be extended
26and taxes levied, collected and distributed in the manner

 

 

09800SB0016sam001- 93 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 94 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 95 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 96 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 97 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 98 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 99 -LRB098 04277 NHT 57820 a

1initial updated equalized assessed value of the property, shall
2be used in calculating the general General State aid formula
3School Aid Formula, provided for in Section 18-8 of the School
4Code, or the primary State aid formula, provided for in Section
518-8.15 of the School Code, until all redevelopment project
6costs have been paid as provided for in this Section.
7    Whenever a municipality issues bonds for the purpose of
8financing redevelopment project costs, that municipality may
9provide by ordinance for the appointment of a trustee, which
10may be any trust company within the State, and for the
11establishment of any funds or accounts to be maintained by that
12trustee, as the municipality deems necessary to provide for the
13security and payment of the bonds. If the municipality provides
14for the appointment of a trustee, the trustee shall be
15considered the assignee of any payments assigned by the
16municipality under that ordinance and this Section. Any amounts
17paid to the trustee as assignee shall be deposited into the
18funds or accounts established under the trust agreement, and
19shall be held by the trustee in trust for the benefit of the
20holders of the bonds. The holders of those bonds shall have a
21lien on and a security interest in those funds or accounts
22while the bonds remain outstanding and unpaid. Upon retirement
23of the bonds, the trustee shall pay over any excess amounts
24held to the municipality for deposit in the special tax
25allocation fund.
26    When the redevelopment projects costs, including without

 

 

09800SB0016sam001- 100 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 101 -LRB098 04277 NHT 57820 a

1prior to November if the redevelopment project area is to be
2terminated by December 31 of that same year.
3    Nothing in this Section shall be construed as relieving
4property in a redevelopment project area from being assessed as
5provided in the Property Tax Code or as relieving owners of
6that property from paying a uniform rate of taxes, as required
7by Section 4 of Article IX of the Illinois Constitution.
8(Source: P.A. 91-474, eff. 11-1-99.)
 
9    Section 940. The Economic Development Project Area Tax
10Increment Allocation Act of 1995 is amended by changing Section
1150 as follows:
 
12    (65 ILCS 110/50)
13    Sec. 50. Special tax allocation fund.
14    (a) If a county clerk has certified the "total initial
15equalized assessed value" of the taxable real property within
16an economic development project area in the manner provided in
17Section 45, each year after the date of the certification by
18the county clerk of the "total initial equalized assessed
19value", until economic development project costs and all
20municipal obligations financing economic development project
21costs have been paid, the ad valorem taxes, if any, arising
22from the levies upon the taxable real property in the economic
23development project area by taxing districts and tax rates
24determined in the manner provided in subsection (b) of Section

 

 

09800SB0016sam001- 102 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 103 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 104 -LRB098 04277 NHT 57820 a

1economic development project area, the municipality shall
2adopt an ordinance dissolving the special tax allocation fund
3for the economic development project area and terminating the
4designation of the economic development project area as an
5economic development project area. Thereafter, the rates of the
6taxing districts shall be extended and taxes shall be levied,
7collected, and distributed in the manner applicable in the
8absence of the adoption of tax increment allocation financing.
9    (e) Nothing in this Section shall be construed as relieving
10property in the economic development project areas from being
11assessed as provided in the Property Tax Code or as relieving
12owners or lessees of that property from paying a uniform rate
13of taxes as required by Section 4 of Article IX of the Illinois
14Constitution.
15(Source: P.A. 98-463, eff. 8-16-13.)
 
16    Section 945. The School Code is amended by changing
17Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1D-1, 1E-20,
181F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
192-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-19, 10-22.5a,
2010-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50,
2113B-50.10, 13B-50.15, 14-7.02, 14-7.02b, 14-7.03, 14-13.01,
2214C-12, 17-1, 17-1.2, 17-1.5, 18-4.3, 18-8.05, 18-8.10, 18-9,
2318-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5, 34-2.3, 34-8.4,
2434-18, 34-18.30, and 34-43.1 and by adding Sections 14-7.02c
25and 18-8.15 as follows:
 

 

 

09800SB0016sam001- 105 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 106 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 107 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 108 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 109 -LRB098 04277 NHT 57820 a

1    No bonds, notes, teachers orders, tax anticipation
2warrants or other evidences of indebtedness shall be issued or
3sold by a school district or be legally binding upon or
4enforceable against a local board of education of a district
5certified to be in financial difficulty unless and until the
6financial plan required under this Section has been approved by
7the State Board of Education.
8    Any financial profile compiled and distributed by the State
9Board of Education in Fiscal Year 2009 or any fiscal year
10thereafter shall incorporate such adjustments as may be needed
11in the profile scores to reflect the financial effects of the
12inability or refusal of the State of Illinois to make timely
13disbursements of any general State aid, primary State aid, or
14mandated categorical aid payments due school districts or to
15fully reimburse school districts for mandated categorical
16programs pursuant to reimbursement formulas provided in this
17School Code.
18(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1997-429, eff. 8-16-11.)
 
20    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
21    Sec. 1B-5. When a petition for emergency financial
22assistance for a school district is allowed by the State Board
23under Section 1B-4, the State Superintendent shall within 10
24days thereafter appoint 3 members to serve at the State
25Superintendent's pleasure on a Financial Oversight Panel for

 

 

09800SB0016sam001- 110 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 111 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 112 -LRB098 04277 NHT 57820 a

1    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
2    Sec. 1B-6. General powers. The purpose of the Financial
3Oversight Panel shall be to exercise financial control over the
4board of education, and, when approved by the State Board and
5the State Superintendent of Education, to furnish financial
6assistance so that the board can provide public education
7within the board's jurisdiction while permitting the board to
8meet its obligations to its creditors and the holders of its
9notes and bonds. Except as expressly limited by this Article,
10the Panel shall have all powers necessary to meet its
11responsibilities and to carry out its purposes and the purposes
12of this Article, including, but not limited to, the following
13powers:
14    (a) to sue and be sued;
15    (b) to provide for its organization and internal
16management;
17    (c) to appoint a Financial Administrator to serve as the
18chief executive officer of the Panel. The Financial
19Administrator may be an individual, partnership, corporation,
20including an accounting firm, or other entity determined by the
21Panel to be qualified to serve; and to appoint other officers,
22agents, and employees of the Panel, define their duties and
23qualifications and fix their compensation and employee
24benefits;
25    (d) to approve the local board of education appointments to
26the positions of treasurer in a Class I county school unit and

 

 

09800SB0016sam001- 113 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 114 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 115 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 116 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 117 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 118 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 119 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 120 -LRB098 04277 NHT 57820 a

1loan is approved by the Illinois Finance Authority, not later
2than the date the Financial Oversight Panel ceases to exist.
3The Panel shall establish and the Illinois Finance Authority
4shall approve the terms and conditions, including the schedule,
5of repayments. The schedule shall provide for repayments
6commencing July 1 of each year or upon each fiscal year's
7receipt of moneys from a tax levy for emergency financial
8assistance. Repayment shall be incorporated into the annual
9budget of the school district and may be made from any fund or
10funds of the district in which there are moneys available. An
11emergency financial assistance loan to the Panel or district
12shall not be considered part of the calculation of a district's
13debt for purposes of the limitation specified in Section 19-1
14of this Code. Default on repayment is subject to the Illinois
15Grant Funds Recovery Act. When moneys are repaid as provided
16herein they shall not be made available to the local board for
17further use as emergency financial assistance under this
18Article at any time thereafter. All repayments required to be
19made by a school district shall be received by the State Board
20and deposited in the School District Emergency Financial
21Assistance Fund.
22    In establishing the terms and conditions for the repayment
23obligation of the school district the Panel shall annually
24determine whether a separate local property tax levy is
25required. The board of any school district with a tax rate for
26educational purposes for the prior year of less than 120% of

 

 

09800SB0016sam001- 121 -LRB098 04277 NHT 57820 a

1the maximum rate for educational purposes authorized by Section
217-2 shall provide for a separate tax levy for emergency
3financial assistance repayment purposes. Such tax levy shall
4not be subject to referendum approval. The amount of the levy
5shall be equal to the amount necessary to meet the annual
6repayment obligations of the district as established by the
7Panel, or 20% of the amount levied for educational purposes for
8the prior year, whichever is less. However, no district shall
9be required to levy the tax if the district's operating tax
10rate as determined under Section 18-8, or 18-8.05, or 18-8.15
11exceeds 200% of the district's tax rate for educational
12purposes for the prior year.
13(Source: P.A. 97-429, eff. 8-16-11.)
 
14    (105 ILCS 5/1C-1)
15    Sec. 1C-1. Purpose. The purpose of this Article is to
16permit greater flexibility and efficiency in the distribution
17and use of certain State funds available to local education
18agencies for the improvement of the quality of educational
19services pursuant to locally established priorities.
20    Through fiscal year 2014, this This Article does not apply
21to school districts having a population in excess of 500,000
22inhabitants.
23(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
2489-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 

 

 

09800SB0016sam001- 122 -LRB098 04277 NHT 57820 a

1    (105 ILCS 5/1D-1)
2    Sec. 1D-1. Block grant funding.
3    (a) For fiscal year 1996 through fiscal year 2014 and each
4fiscal year thereafter, the State Board of Education shall
5award to a school district having a population exceeding
6500,000 inhabitants a general education block grant and an
7educational services block grant, determined as provided in
8this Section, in lieu of distributing to the district separate
9State funding for the programs described in subsections (b) and
10(c). The provisions of this Section, however, do not apply to
11any federal funds that the district is entitled to receive. In
12accordance with Section 2-3.32, all block grants are subject to
13an audit. Therefore, block grant receipts and block grant
14expenditures shall be recorded to the appropriate fund code for
15the designated block grant.
16    (b) The general education block grant shall include the
17following programs: REI Initiative, Summer Bridges, Preschool
18At Risk, K-6 Comprehensive Arts, School Improvement Support,
19Urban Education, Scientific Literacy, Substance Abuse
20Prevention, Second Language Planning, Staff Development,
21Outcomes and Assessment, K-6 Reading Improvement, 7-12
22Continued Reading Improvement, Truants' Optional Education,
23Hispanic Programs, Agriculture Education, Parental Education,
24Prevention Initiative, Report Cards, and Criminal Background
25Investigations. Notwithstanding any other provision of law,
26all amounts paid under the general education block grant from

 

 

09800SB0016sam001- 123 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 124 -LRB098 04277 NHT 57820 a

1this Section shall change the nature of payments for any
2program that, apart from this Section, would be or, prior to
3adoption or amendment of this Section, was on the basis of a
4payment in a fiscal year in respect of services provided or
5costs incurred in the prior fiscal year, calculated in each
6case as provided in this Section.
7    (d) For fiscal year 1996 through fiscal year 2014 and each
8fiscal year thereafter, the amount of the district's block
9grants shall be determined as follows: (i) with respect to each
10program that is included within each block grant, the district
11shall receive an amount equal to the same percentage of the
12current fiscal year appropriation made for that program as the
13percentage of the appropriation received by the district from
14the 1995 fiscal year appropriation made for that program, and
15(ii) the total amount that is due the district under the block
16grant shall be the aggregate of the amounts that the district
17is entitled to receive for the fiscal year with respect to each
18program that is included within the block grant that the State
19Board of Education shall award the district under this Section
20for that fiscal year. In the case of the Summer Bridges
21program, the amount of the district's block grant shall be
22equal to 44% of the amount of the current fiscal year
23appropriation made for that program.
24    (e) The district is not required to file any application or
25other claim in order to receive the block grants to which it is
26entitled under this Section. The State Board of Education shall

 

 

09800SB0016sam001- 125 -LRB098 04277 NHT 57820 a

1make payments to the district of amounts due under the
2district's block grants on a schedule determined by the State
3Board of Education.
4    (f) A school district to which this Section applies shall
5report to the State Board of Education on its use of the block
6grants in such form and detail as the State Board of Education
7may specify. In addition, the report must include the following
8description for the district, which must also be reported to
9the General Assembly: block grant allocation and expenditures
10by program; population and service levels by program; and
11administrative expenditures by program. The State Board of
12Education shall ensure that the reporting requirements for the
13district are the same as for all other school districts in this
14State.
15    (g) Through fiscal year 2014, this This paragraph provides
16for the treatment of block grants under Article 1C for purposes
17of calculating the amount of block grants for a district under
18this Section. Those block grants under Article 1C are, for this
19purpose, treated as included in the amount of appropriation for
20the various programs set forth in paragraph (b) above. The
21appropriation in each current fiscal year for each block grant
22under Article 1C shall be treated for these purposes as
23appropriations for the individual program included in that
24block grant. The proportion of each block grant so allocated to
25each such program included in it shall be the proportion which
26the appropriation for that program was of all appropriations

 

 

09800SB0016sam001- 126 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 127 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 128 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 129 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 130 -LRB098 04277 NHT 57820 a

1member shall serve for a term of 3 years and until his or her
2successor has been appointed. The State Superintendent shall
3designate one of the members of the Authority to serve as its
4Chairperson. In the event of vacancy or resignation, the State
5Superintendent shall, within 10 days after receiving notice,
6appoint a successor to serve out that member's term. The State
7Superintendent may remove a member for incompetence,
8malfeasance, neglect of duty, or other just cause.
9    Members of the Authority shall be selected primarily on the
10basis of their experience and education in financial
11management, with consideration given to persons knowledgeable
12in education finance. Two members of the Authority shall be
13residents of the school district that the Authority serves. A
14member of the Authority may not be a member of the district's
15school board or an employee of the district nor may a member
16have a direct financial interest in the district.
17    Authority members shall be paid a stipend approved by the
18State Superintendent of not more than $100 per meeting and may
19be reimbursed by the State Board for travel and other necessary
20expenses incurred in the performance of their official duties.
21Unless paid from bonds issued under Section 1F-65 of this Code,
22the amount reimbursed members for their expenses shall be
23charged to the school district as part of any emergency
24financial assistance and incorporated as a part of the terms
25and conditions for repayment of the assistance or shall be
26deducted from the district's general State aid or primary State

 

 

09800SB0016sam001- 131 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 132 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 133 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 134 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 135 -LRB098 04277 NHT 57820 a

1School Finance Authority shall provide for a separate tax levy
2for emergency financial assistance repayment purposes. This
3tax levy shall not be subject to referendum approval. The
4amount of the levy shall not exceed the amount necessary to
5meet the annual emergency financial repayment obligations of
6the district, including principal and interest, as established
7by the School Finance Authority.
8(Source: P.A. 94-234, eff. 7-1-06.)
 
9    (105 ILCS 5/1H-20)
10    Sec. 1H-20. Members of Panel; meetings.
11    (a) Upon establishment of a Financial Oversight Panel under
12Section 1H-15 of this Code, the State Superintendent shall
13within 15 working days thereafter appoint 5 members to serve on
14a Financial Oversight Panel for the district. Members appointed
15to the Panel shall serve at the pleasure of the State
16Superintendent. The State Superintendent shall designate one
17of the members of the Panel to serve as its Chairperson. In the
18event of vacancy or resignation, the State Superintendent
19shall, within 10 days after receiving notice, appoint a
20successor to serve out that member's term.
21    (b) Members of the Panel shall be selected primarily on the
22basis of their experience and education in financial
23management, with consideration given to persons knowledgeable
24in education finance. Two members of the Panel shall be
25residents of the school district that the Panel serves. A

 

 

09800SB0016sam001- 136 -LRB098 04277 NHT 57820 a

1member of the Panel may not be a member of the district's
2school board or an employee of the district nor may a member
3have a direct financial interest in the district.
4    (c) Panel members may be reimbursed by the State Board for
5travel and other necessary expenses incurred in the performance
6of their official duties. The amount reimbursed members for
7their expenses shall be charged to the school district as part
8of any emergency financial assistance and incorporated as a
9part of the terms and conditions for repayment of the
10assistance or shall be deducted from the district's general
11State aid or primary State aid as provided in Section 1H-65 of
12this Code.
13    (d) With the exception of the chairperson, who shall be
14designated as provided in subsection (a) of this Section, the
15Panel may elect such officers as it deems appropriate.
16    (e) The first meeting of the Panel shall be held at the
17call of the Chairperson. The Panel shall prescribe the times
18and places for its meetings and the manner in which regular and
19special meetings may be called and shall comply with the Open
20Meetings Act. The Panel shall also comply with the Freedom of
21Information Act.
22    (f) Three members of the Panel shall constitute a quorum. A
23majority of members present is required to pass a measure.
24(Source: P.A. 97-429, eff. 8-16-11.)
 
25    (105 ILCS 5/1H-70)

 

 

09800SB0016sam001- 137 -LRB098 04277 NHT 57820 a

1    Sec. 1H-70. Tax anticipation warrants, tax anticipation
2notes, revenue anticipation certificates or notes, general
3State aid or primary State aid anticipation certificates, and
4lines of credit. With the approval of the State Superintendent
5and provided that the district is unable to secure short-term
6financing after 3 attempts, a Panel shall have the same power
7as a district to do the following:
8        (1) issue tax anticipation warrants under the
9    provisions of Section 17-16 of this Code against taxes
10    levied by either the school board or the Panel pursuant to
11    Section 1H-25 of this Code;
12        (2) issue tax anticipation notes under the provisions
13    of the Tax Anticipation Note Act against taxes levied by
14    either the school board or the Panel pursuant to Section
15    1H-25 of this Code;
16        (3) issue revenue anticipation certificates or notes
17    under the provisions of the Revenue Anticipation Act;
18        (4) issue general State aid or primary State aid
19    anticipation certificates under the provisions of Section
20    18-18 of this Code; and
21        (5) establish and utilize lines of credit under the
22    provisions of Section 17-17 of this Code.
23    Tax anticipation warrants, tax anticipation notes, revenue
24anticipation certificates or notes, general State aid or
25primary State aid anticipation certificates, and lines of
26credit are considered borrowing from sources other than the

 

 

09800SB0016sam001- 138 -LRB098 04277 NHT 57820 a

1State and are subject to Section 1H-65 of this Code.
2(Source: P.A. 97-429, eff. 8-16-11.)
 
3    (105 ILCS 5/2-3.28)  (from Ch. 122, par. 2-3.28)
4    Sec. 2-3.28. Rules and regulations of budget and accounting
5systems. To prescribe rules and regulations defining what shall
6constitute a budget and accounting system required under this
7Act. The rules and regulations shall prescribe the minimum
8extent of verification, the type of audit, the extent of the
9audit report and shall require compliance with statutory
10requirements and standards and such requirements as the State
11Board of Education deems necessary for an adequate budget and
12accounting system. For the 2015-2016 school year and
13thereafter, the rules and regulations shall prescribe a system
14for accounting for revenues and expenditures at the individual
15school level that includes without limitation the following:
16        (1) accounting for expenditures for school
17    administration, regular instruction, special education
18    instruction, instructional support services, and pupil
19    support services;
20        (2) salary expenditures reflecting actual staff
21    salaries at each school;
22        (3) accounting for operations, including
23    non-instructional pupil services, facilities, and business
24    services; and
25        (4) such other requirements as the State Board of

 

 

09800SB0016sam001- 139 -LRB098 04277 NHT 57820 a

1    Education deems necessary to provide for a uniform and
2    transparent system of accounting at the school level.
3(Source: P.A. 81-1508.)
 
4    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
5    Sec. 2-3.33. Recomputation of claims. To recompute within
63 years from the final date for filing of a claim any claim for
7reimbursement to any school district if the claim has been
8found to be incorrect and to adjust subsequent claims
9accordingly, and to recompute and adjust any such claims within
106 years from the final date for filing when there has been an
11adverse court or administrative agency decision on the merits
12affecting the tax revenues of the school district. However, no
13such adjustment shall be made regarding equalized assessed
14valuation unless the district's equalized assessed valuation
15is changed by greater than $250,000 or 2%.
16    Except in the case of an adverse court or administrative
17agency decision, no recomputation of a State aid claim shall be
18made pursuant to this Section as a result of a reduction in the
19assessed valuation of a school district from the assessed
20valuation of the district reported to the State Board of
21Education by the Department of Revenue under Section 18-8.05 or
2218-8.15 of this Code unless the requirements of Section 16-15
23of the Property Tax Code and Section 2-3.84 of this Code are
24complied with in all respects.
25    This paragraph applies to all requests for recomputation of

 

 

09800SB0016sam001- 140 -LRB098 04277 NHT 57820 a

1a general State aid or primary State aid claim received after
2June 30, 2003. In recomputing a general State aid or primary
3State aid claim that was originally calculated using an
4extension limitation equalized assessed valuation under
5paragraph (3) of subsection (G) of Section 18-8.05 of this Code
6or paragraph (3) of subsection (h) of Section 18-8.15 of this
7Code, a qualifying reduction in equalized assessed valuation
8shall be deducted from the extension limitation equalized
9assessed valuation that was used in calculating the original
10claim.
11    From the total amount of general State aid or primary State
12aid to be provided to districts, adjustments as a result of
13recomputation under this Section together with adjustments
14under Section 2-3.84 must not exceed $25 million, in the
15aggregate for all districts under both Sections combined, of
16the general State aid or primary State aid appropriation in any
17fiscal year; if necessary, amounts shall be prorated among
18districts. If it is necessary to prorate claims under this
19paragraph, then that portion of each prorated claim that is
20approved but not paid in the current fiscal year may be
21resubmitted as a valid claim in the following fiscal year.
22(Source: P.A. 93-845, eff. 7-30-04.)
 
23    (105 ILCS 5/2-3.51.5)
24    Sec. 2-3.51.5. School Safety and Educational Improvement
25Block Grant Program. To improve the level of education and

 

 

09800SB0016sam001- 141 -LRB098 04277 NHT 57820 a

1safety of students from kindergarten through grade 12 in school
2districts and State-recognized, non-public schools. The State
3Board of Education is authorized to fund a School Safety and
4Educational Improvement Block Grant Program.
5    (1) For school districts, the program shall provide funding
6for school safety, textbooks and software, electronic
7textbooks and the technological equipment necessary to gain
8access to and use electronic textbooks, teacher training and
9curriculum development, school improvements, remediation
10programs under subsection (a) of Section 2-3.64, school report
11cards under Section 10-17a, and criminal history records checks
12under Sections 10-21.9 and 34-18.5. For State-recognized,
13non-public schools, the program shall provide funding for
14secular textbooks and software, criminal history records
15checks, and health and safety mandates to the extent that the
16funds are expended for purely secular purposes. A school
17district or laboratory school as defined in Section 18-8, or
1818-8.05, or 18-8.15 is not required to file an application in
19order to receive the categorical funding to which it is
20entitled under this Section. Funds for the School Safety and
21Educational Improvement Block Grant Program shall be
22distributed to school districts and laboratory schools based on
23the prior year's best 3 months average daily attendance. Funds
24for the School Safety and Educational Improvement Block Grant
25Program shall be distributed to State-recognized, non-public
26schools based on the average daily attendance figure for the

 

 

09800SB0016sam001- 142 -LRB098 04277 NHT 57820 a

1previous school year provided to the State Board of Education.
2The State Board of Education shall develop an application that
3requires State-recognized, non-public schools to submit
4average daily attendance figures. A State-recognized,
5non-public school must submit the application and average daily
6attendance figure prior to receiving funds under this Section.
7The State Board of Education shall promulgate rules and
8regulations necessary for the implementation of this program.
9    (2) Distribution of moneys to school districts and
10State-recognized, non-public schools shall be made in 2
11semi-annual installments, one payment on or before October 30,
12and one payment prior to April 30, of each fiscal year.
13    (3) Grants under the School Safety and Educational
14Improvement Block Grant Program shall be awarded provided there
15is an appropriation for the program, and funding levels for
16each district shall be prorated according to the amount of the
17appropriation.
18    (4) The provisions of this Section are in the public
19interest, are for the public benefit, and serve secular public
20purposes.
21(Source: P.A. 95-707, eff. 1-11-08; 96-1403, eff. 7-29-10.)
 
22    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
23    Sec. 2-3.66. Truants' alternative and optional education
24programs. To establish projects to offer modified
25instructional programs or other services designed to prevent

 

 

09800SB0016sam001- 143 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 144 -LRB098 04277 NHT 57820 a

1awarded grants pursuant to this Section shall be authorized to
2provide day care services to children of students who are
3eligible and desire to enroll in programs established and
4funded under this Section, but only if and to the extent that
5such day care is necessary to enable those eligible students to
6attend and participate in the programs and courses which are
7conducted pursuant to this Section. School districts and
8regional offices of education may claim general State aid under
9Section 18-8.05 or primary State aid under Section 18-8.15 for
10students enrolled in truants' alternative and optional
11education programs, provided that such students are receiving
12services that are supplemental to a program leading to a high
13school diploma and are otherwise eligible to be claimed for
14general State aid under Section 18-8.05 or primary State aid
15under Section 18-8.15, as applicable.
16(Source: P.A. 96-734, eff. 8-25-09.)
 
17    (105 ILCS 5/2-3.66b)
18    Sec. 2-3.66b. IHOPE Program.
19    (a) There is established the Illinois Hope and Opportunity
20Pathways through Education (IHOPE) Program. The State Board of
21Education shall implement and administer the IHOPE Program. The
22goal of the IHOPE Program is to develop a comprehensive system
23in this State to re-enroll significant numbers of high school
24dropouts in programs that will enable them to earn their high
25school diploma.

 

 

09800SB0016sam001- 145 -LRB098 04277 NHT 57820 a

1    (b) The IHOPE Program shall award grants, subject to
2appropriation for this purpose, to educational service regions
3and a school district organized under Article 34 of this Code
4from appropriated funds to assist in establishing
5instructional programs and other services designed to
6re-enroll high school dropouts. From any funds appropriated for
7the IHOPE Program, the State Board of Education may use up to
85% for administrative costs, including the performance of a
9program evaluation and the hiring of staff to implement and
10administer the program.
11    The IHOPE Program shall provide incentive grant funds for
12regional offices of education and a school district organized
13under Article 34 of this Code to develop partnerships with
14school districts, public community colleges, and community
15groups to build comprehensive plans to re-enroll high school
16dropouts in their regions or districts.
17    Programs funded through the IHOPE Program shall allow high
18school dropouts, up to and including age 21 notwithstanding
19Section 26-2 of this Code, to re-enroll in an educational
20program in conformance with rules adopted by the State Board of
21Education. Programs may include without limitation
22comprehensive year-round programming, evening school, summer
23school, community college courses, adult education, vocational
24training, work experience, programs to enhance self-concept,
25and parenting courses. Any student in the IHOPE Program who
26wishes to earn a high school diploma must meet the

 

 

09800SB0016sam001- 146 -LRB098 04277 NHT 57820 a

1prerequisites to receiving a high school diploma specified in
2Section 27-22 of this Code and any other graduation
3requirements of the student's district of residence. Any
4student who successfully completes the requirements for his or
5her graduation shall receive a diploma identifying the student
6as graduating from his or her district of residence.
7    (c) In order to be eligible for funding under the IHOPE
8Program, an interested regional office of education or a school
9district organized under Article 34 of this Code shall develop
10an IHOPE Plan to be approved by the State Board of Education.
11The State Board of Education shall develop rules for the IHOPE
12Program that shall set forth the requirements for the
13development of the IHOPE Plan. Each Plan shall involve school
14districts, public community colleges, and key community
15programs that work with high school dropouts located in an
16educational service region or the City of Chicago before the
17Plan is sent to the State Board for approval. No funds may be
18distributed to a regional office of education or a school
19district organized under Article 34 of this Code until the
20State Board has approved the Plan.
21    (d) A regional office of education or a school district
22organized under Article 34 of this Code may operate its own
23program funded by the IHOPE Program or enter into a contract
24with other not-for-profit entities, including school
25districts, public community colleges, and not-for-profit
26community-based organizations, to operate a program.

 

 

09800SB0016sam001- 147 -LRB098 04277 NHT 57820 a

1    A regional office of education or a school district
2organized under Article 34 of this Code that receives an IHOPE
3grant from the State Board of Education may provide funds under
4a sub-grant, as specified in the IHOPE Plan, to other
5not-for-profit entities to provide services according to the
6IHOPE Plan that was developed. These other entities may include
7school districts, public community colleges, or not-for-profit
8community-based organizations or a cooperative partnership
9among these entities.
10    (e) In order to distribute funding based upon the need to
11ensure delivery of programs that will have the greatest impact,
12IHOPE Program funding must be distributed based upon the
13proportion of dropouts in the educational service region or
14school district, in the case of a school district organized
15under Article 34 of this Code, to the total number of dropouts
16in this State. This formula shall employ the dropout data
17provided by school districts to the State Board of Education.
18    A regional office of education or a school district
19organized under Article 34 of this Code may claim State aid
20under Section 18-8.05 or 18-8.15 of this Code for students
21enrolled in a program funded by the IHOPE Program, provided
22that the State Board of Education has approved the IHOPE Plan
23and that these students are receiving services that are meeting
24the requirements of Section 27-22 of this Code for receipt of a
25high school diploma and are otherwise eligible to be claimed
26for general State aid under Section 18-8.05 of this Code or

 

 

09800SB0016sam001- 148 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 149 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 150 -LRB098 04277 NHT 57820 a

1        (9) Learning opportunities that incorporate action
2    into study.
3    (h) Programs funded through the IHOPE Program must report
4data to the State Board of Education as requested. This
5information shall include, but is not limited to, student
6enrollment figures, attendance information, course completion
7data, graduation information, and post-graduation information,
8as available.
9    (i) Rules must be developed by the State Board of Education
10to set forth the fund distribution process to regional offices
11of education and a school district organized under Article 34
12of this Code, the planning and the conditions upon which an
13IHOPE Plan would be approved by State Board, and other rules to
14develop the IHOPE Program.
15(Source: P.A. 96-106, eff. 7-30-09.)
 
16    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
17    Sec. 2-3.84. In calculating the amount of State aid to be
18apportioned to the various school districts in this State, the
19State Board of Education shall incorporate and deduct the total
20aggregate adjustments to assessments made by the State Property
21Tax Appeal Board or Cook County Board of Appeals, as reported
22pursuant to Section 16-15 of the Property Tax Code or Section
23129.1 of the Revenue Act of 1939 by the Department of Revenue,
24from the equalized assessed valuation that is otherwise to be
25utilized in the initial calculation.

 

 

09800SB0016sam001- 151 -LRB098 04277 NHT 57820 a

1    From the total amount of general State aid or primary State
2aid to be provided to districts, adjustments under this Section
3together with adjustments as a result of recomputation under
4Section 2-3.33 must not exceed $25 million, in the aggregate
5for all districts under both Sections combined, of the general
6State aid or primary State aid appropriation in any fiscal
7year; if necessary, amounts shall be prorated among districts.
8If it is necessary to prorate claims under this paragraph, then
9that portion of each prorated claim that is approved but not
10paid in the current fiscal year may be resubmitted as a valid
11claim in the following fiscal year.
12(Source: P.A. 93-845, eff. 7-30-04.)
 
13    (105 ILCS 5/2-3.109a)
14    Sec. 2-3.109a. Laboratory schools grant eligibility. A
15laboratory school as defined in Section 18-8 or 18-8.15 may
16apply for and be eligible to receive, subject to the same
17restrictions applicable to school districts, any grant
18administered by the State Board of Education that is available
19for school districts.
20(Source: P.A. 90-566, eff. 1-2-98.)
 
21    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
22    Sec. 3-14.21. Inspection of schools.
23    (a) The regional superintendent shall inspect and survey
24all public schools under his or her supervision and notify the

 

 

09800SB0016sam001- 152 -LRB098 04277 NHT 57820 a

1board of education, or the trustees of schools in a district
2with trustees, in writing before July 30, whether or not the
3several schools in their district have been kept as required by
4law, using forms provided by the State Board of Education which
5are based on the Health/Life Safety Code for Public Schools
6adopted under Section 2-3.12. The regional superintendent
7shall report his or her findings to the State Board of
8Education on forms provided by the State Board of Education.
9    (b) If the regional superintendent determines that a school
10board has failed in a timely manner to correct urgent items
11identified in a previous life-safety report completed under
12Section 2-3.12 or as otherwise previously ordered by the
13regional superintendent, the regional superintendent shall
14order the school board to adopt and submit to the regional
15superintendent a plan for the immediate correction of the
16building violations. This plan shall be adopted following a
17public hearing that is conducted by the school board on the
18violations and the plan and that is preceded by at least 7
19days' prior notice of the hearing published in a newspaper of
20general circulation within the school district. If the regional
21superintendent determines in the next annual inspection that
22the plan has not been completed and that the violations have
23not been corrected, the regional superintendent shall submit a
24report to the State Board of Education with a recommendation
25that the State Board withhold from payments of general State
26aid or primary State aid due to the district an amount

 

 

09800SB0016sam001- 153 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 154 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 155 -LRB098 04277 NHT 57820 a

1average daily attendance of pupils living in the territory
2during the year preceding the effective date of the boundary
3change in its claim for reimbursement under Section 18-8 or
418-8.15 for the school year following the effective date of the
5change in boundaries and the district receiving the territory
6shall count the average daily attendance of pupils living in
7the territory during the year preceding the effective date of
8the boundary change in its claim for reimbursement under
9Section 18-8 or 18-8.15 for the school year following the
10effective date of the change in boundaries. The changes to this
11Section made by this amendatory Act of the 95th General
12Assembly are intended to be retroactive and applicable to any
13annexation taking effect on or after July 1, 2004.
14(Source: P.A. 95-707, eff. 1-11-08.)
 
15    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
16    Sec. 10-19. Length of school term - experimental programs.
17Each school board shall annually prepare a calendar for the
18school term, specifying the opening and closing dates and
19providing a minimum term of at least 185 days to insure 176
20days of actual pupil attendance, computable under Section
2118-8.05 or 18-8.15, except that for the 1980-1981 school year
22only 175 days of actual pupil attendance shall be required
23because of the closing of schools pursuant to Section 24-2 on
24January 29, 1981 upon the appointment by the President of that
25day as a day of thanksgiving for the freedom of the Americans

 

 

09800SB0016sam001- 156 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 157 -LRB098 04277 NHT 57820 a

110-22.18d.
2    The calendar for the school term and any changes must be
3submitted to and approved by the regional superintendent of
4schools before the calendar or changes may take effect.
5    With the prior approval of the State Board of Education and
6subject to review by the State Board of Education every 3
7years, any school board may, by resolution of its board and in
8agreement with affected exclusive collective bargaining
9agents, establish experimental educational programs, including
10but not limited to programs for self-directed learning or
11outside of formal class periods, which programs when so
12approved shall be considered to comply with the requirements of
13this Section as respects numbers of days of actual pupil
14attendance and with the other requirements of this Act as
15respects courses of instruction.
16(Source: P.A. 93-1036, eff. 9-14-04; revised 11-12-13.)
 
17    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
18    Sec. 10-22.5a. Attendance by dependents of United States
19military personnel, foreign exchange students, and certain
20nonresident pupils.
21    (a) To enter into written agreements with cultural exchange
22organizations, or with nationally recognized eleemosynary
23institutions that promote excellence in the arts, mathematics,
24or science. The written agreements may provide for tuition free
25attendance at the local district school by foreign exchange

 

 

09800SB0016sam001- 158 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 159 -LRB098 04277 NHT 57820 a

1sent to an address located within the district, a lease
2agreement for occupancy of a residence located within the
3district, or proof of ownership of a residence located within
4the district.
5    (b) Nonresident pupils and foreign exchange students
6attending school on a tuition free basis under such agreements
7and nonresident dependents of United States military personnel
8attending school on a tuition free basis may be counted for the
9purposes of determining the apportionment of State aid provided
10under Section 18-8.05 or 18-8.15 of this Code, provided that
11any cultural exchange organization or eleemosynary
12institutions wishing to participate in an agreement authorized
13under this Section must be approved in writing by the State
14Board of Education. The State Board of Education may establish
15reasonable rules to determine the eligibility of cultural
16exchange organizations or eleemosynary institutions wishing to
17participate in agreements authorized under this Section. No
18organization or institution participating in agreements
19authorized under this Section may exclude any individual for
20participation in its program on account of the person's race,
21color, sex, religion or nationality.
22(Source: P.A. 93-740, eff. 7-15-04.)
 
23    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
24    Sec. 10-22.20. Classes for adults and youths whose
25schooling has been interrupted; conditions for State

 

 

09800SB0016sam001- 160 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 161 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 162 -LRB098 04277 NHT 57820 a

1    and for adjusting the calculations in cases where the
2    services of a program are interrupted due to circumstances
3    beyond the control of the program provider;
4        (3) a plan for the reallocation of funds to increase
5    the amount allocated for grants based upon program
6    performance as set forth in subsection (d) below; and
7        (4) the development of standards for determining
8    grants based upon performance as set forth in subsection
9    (d) below and a plan for the phased-in implementation of
10    those standards.
11    For instruction provided by school districts and community
12college districts beginning July 1, 1996 and thereafter,
13reimbursement provided by the Illinois Community College Board
14for classes authorized by this Section shall be provided from
15funds appropriated for the reimbursement criteria set forth in
16subsection (c) below.
17    (c) Upon the annual approval of the Illinois Community
18College Board, reimbursement shall be first provided for
19transportation, child care services, and other special needs of
20the students directly related to instruction and then from the
21funds remaining an amount equal to the product of the total
22credit hours or units of instruction approved by the Illinois
23Community College Board, multiplied by the following:
24        (1) For adult basic education, the maximum
25    reimbursement per credit hour or per unit of instruction
26    shall be equal to (i) through fiscal year 2014, the general

 

 

09800SB0016sam001- 163 -LRB098 04277 NHT 57820 a

1    state aid per pupil foundation level established in
2    subsection (B) of Section 18-8.05, divided by 60, or (ii)
3    in fiscal year 2015 and thereafter, the foundation level
4    established pursuant to subsection (b) of Section 18-8.15
5    of this Code, divided by 60;
6        (2) The maximum reimbursement per credit hour or per
7    unit of instruction in subparagraph (1) above shall be
8    weighted for students enrolled in classes defined as
9    vocational skills and approved by the Illinois Community
10    College Board by 1.25;
11        (3) The maximum reimbursement per credit hour or per
12    unit of instruction in subparagraph (1) above shall be
13    multiplied by .90 for students enrolled in classes defined
14    as adult secondary education programs and approved by the
15    Illinois Community College Board;
16        (4) (Blank); and
17        (5) Funding for program years after 1999-2000 shall be
18    determined by the Illinois Community College Board.
19    (d) Upon its annual approval, the Illinois Community
20College Board shall provide grants to eligible programs for
21supplemental activities to improve or expand services under the
22Adult Education Act. Eligible programs shall be determined
23based upon performance outcomes of students in the programs as
24set by the Illinois Community College Board.
25    (e) Reimbursement under this Section shall not exceed the
26actual costs of the approved program.

 

 

09800SB0016sam001- 164 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 165 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 166 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 167 -LRB098 04277 NHT 57820 a

1    (i) The provisions of this Section shall also apply to
2school districts having a population exceeding 500,000.
3    (j) In addition to claiming reimbursement under this
4Section, a school district may claim general State aid under
5Section 18-8.05 or primary State aid under Section 18-8.15 for
6any student under age 21 who is enrolled in courses accepted
7for graduation from elementary or high school and who otherwise
8meets the requirements of Section 18-8.05 or 18-8.15, as
9applicable.
10(Source: P.A. 95-331, eff. 8-21-07.)
 
11    (105 ILCS 5/10-29)
12    Sec. 10-29. Remote educational programs.
13    (a) For purposes of this Section, "remote educational
14program" means an educational program delivered to students in
15the home or other location outside of a school building that
16meets all of the following criteria:
17        (1) A student may participate in the program only after
18    the school district, pursuant to adopted school board
19    policy, and a person authorized to enroll the student under
20    Section 10-20.12b of this Code determine that a remote
21    educational program will best serve the student's
22    individual learning needs. The adopted school board policy
23    shall include, but not be limited to, all of the following:
24            (A) Criteria for determining that a remote
25        educational program will best serve a student's

 

 

09800SB0016sam001- 168 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 169 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 170 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 171 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 172 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 173 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 174 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 175 -LRB098 04277 NHT 57820 a

1for general State aid purposes under Section 18-8.05 of this
2Code or primary State aid purposes under Section 18-8.15 of
3this Code.
4    (g) School districts that, pursuant to this Section, adopt
5a policy for a remote educational program must submit to the
6State Board of Education a copy of the policy and any
7amendments thereto, as well as data on student participation in
8a format specified by the State Board of Education. The State
9Board of Education may perform or contract with an outside
10entity to perform an evaluation of remote educational programs
11in this State.
12    (h) The State Board of Education may adopt any rules
13necessary to ensure compliance by remote educational programs
14with the requirements of this Section and other applicable
15legal requirements.
16(Source: P.A. 96-684, eff. 8-25-09; 97-339, eff. 8-12-11.)
 
17    (105 ILCS 5/11E-135)
18    Sec. 11E-135. Incentives. For districts reorganizing under
19this Article and for a district or districts that annex all of
20the territory of one or more entire other school districts in
21accordance with Article 7 of this Code, the following payments
22shall be made from appropriations made for these purposes:
23    (a)(1) For a combined school district, as defined in
24Section 11E-20 of this Code, or for a unit district, as defined
25in Section 11E-25 of this Code, for its first year of

 

 

09800SB0016sam001- 176 -LRB098 04277 NHT 57820 a

1existence, the general State aid and supplemental general State
2aid calculated under Section 18-8.05 of this Code or the
3primary State aid and supplemental grants calculated under
4Section 18-8.15 of this Code, as applicable, shall be computed
5for the new district and for the previously existing districts
6for which property is totally included within the new district.
7If the computation on the basis of the previously existing
8districts is greater, a supplementary payment equal to the
9difference shall be made for the first 4 years of existence of
10the new district.
11    (2) For a school district that annexes all of the territory
12of one or more entire other school districts as defined in
13Article 7 of this Code, for the first year during which the
14change of boundaries attributable to the annexation becomes
15effective for all purposes, as determined under Section 7-9 of
16this Code, the general State aid and supplemental general State
17aid calculated under Section 18-8.05 of this Code or the
18primary State aid and supplemental grants calculated under
19Section 18-8.15 of this Code, as applicable, shall be computed
20for the annexing district as constituted after the annexation
21and for the annexing and each annexed district as constituted
22prior to the annexation; and if the computation on the basis of
23the annexing and annexed districts as constituted prior to the
24annexation is greater, then a supplementary payment equal to
25the difference shall be made for the first 4 years of existence
26of the annexing school district as constituted upon the

 

 

09800SB0016sam001- 177 -LRB098 04277 NHT 57820 a

1annexation.
2    (3) For 2 or more school districts that annex all of the
3territory of one or more entire other school districts, as
4defined in Article 7 of this Code, for the first year during
5which the change of boundaries attributable to the annexation
6becomes effective for all purposes, as determined under Section
77-9 of this Code, the general State aid and supplemental
8general State aid calculated under Section 18-8.05 of this Code
9or the primary State aid and supplemental grants calculated
10under Section 18-8.15 of this Code, as applicable, shall be
11computed for each annexing district as constituted after the
12annexation and for each annexing and annexed district as
13constituted prior to the annexation; and if the aggregate of
14the general State aid and supplemental general State aid or
15primary State aid and supplemental grants, as applicable, as so
16computed for the annexing districts as constituted after the
17annexation is less than the aggregate of the general State aid
18and supplemental general State aid or primary State aid and
19supplemental grants, as applicable, as so computed for the
20annexing and annexed districts, as constituted prior to the
21annexation, then a supplementary payment equal to the
22difference shall be made and allocated between or among the
23annexing districts, as constituted upon the annexation, for the
24first 4 years of their existence. The total difference payment
25shall be allocated between or among the annexing districts in
26the same ratio as the pupil enrollment from that portion of the

 

 

09800SB0016sam001- 178 -LRB098 04277 NHT 57820 a

1annexed district or districts that is annexed to each annexing
2district bears to the total pupil enrollment from the entire
3annexed district or districts, as such pupil enrollment is
4determined for the school year last ending prior to the date
5when the change of boundaries attributable to the annexation
6becomes effective for all purposes. The amount of the total
7difference payment and the amount thereof to be allocated to
8the annexing districts shall be computed by the State Board of
9Education on the basis of pupil enrollment and other data that
10shall be certified to the State Board of Education, on forms
11that it shall provide for that purpose, by the regional
12superintendent of schools for each educational service region
13in which the annexing and annexed districts are located.
14    (4) For a school district conversion, as defined in Section
1511E-15 of this Code, or a multi-unit conversion, as defined in
16subsection (b) of Section 11E-30 of this Code, if in their
17first year of existence the newly created elementary districts
18and the newly created high school district, from a school
19district conversion, or the newly created elementary district
20or districts and newly created combined high school - unit
21district, from a multi-unit conversion, qualify for less
22general State aid under Section 18-8.05 of this Code or primary
23State aid under Section 18-8.15 of this Code than would have
24been payable under Section 18-8.05 or 18-8.15, as applicable,
25for that same year to the previously existing districts, then a
26supplementary payment equal to that difference shall be made

 

 

09800SB0016sam001- 179 -LRB098 04277 NHT 57820 a

1for the first 4 years of existence of the newly created
2districts. The aggregate amount of each supplementary payment
3shall be allocated among the newly created districts in the
4proportion that the deemed pupil enrollment in each district
5during its first year of existence bears to the actual
6aggregate pupil enrollment in all of the districts during their
7first year of existence. For purposes of each allocation:
8        (A) the deemed pupil enrollment of the newly created
9    high school district from a school district conversion
10    shall be an amount equal to its actual pupil enrollment for
11    its first year of existence multiplied by 1.25;
12        (B) the deemed pupil enrollment of each newly created
13    elementary district from a school district conversion
14    shall be an amount equal to its actual pupil enrollment for
15    its first year of existence reduced by an amount equal to
16    the product obtained when the amount by which the newly
17    created high school district's deemed pupil enrollment
18    exceeds its actual pupil enrollment for its first year of
19    existence is multiplied by a fraction, the numerator of
20    which is the actual pupil enrollment of the newly created
21    elementary district for its first year of existence and the
22    denominator of which is the actual aggregate pupil
23    enrollment of all of the newly created elementary districts
24    for their first year of existence;
25        (C) the deemed high school pupil enrollment of the
26    newly created combined high school - unit district from a

 

 

09800SB0016sam001- 180 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 181 -LRB098 04277 NHT 57820 a

1located.
2    (5) For a partial elementary unit district, as defined in
3subsection (a) or (c) of Section 11E-30 of this Code, if, in
4the first year of existence, the newly created partial
5elementary unit district qualifies for less general State aid
6and supplemental general State aid under Section 18-8.05 of
7this Code or less primary State aid and supplemental grants
8under Section 18-8.15 of this Code, as applicable, than would
9have been payable under those Sections that Section for that
10same year to the previously existing districts that formed the
11partial elementary unit district, then a supplementary payment
12equal to that difference shall be made to the partial
13elementary unit district for the first 4 years of existence of
14that newly created district.
15    (6) For an elementary opt-in, as described in subsection
16(d) of Section 11E-30 of this Code, the general State aid or
17primary State aid difference shall be computed in accordance
18with paragraph (5) of this subsection (a) as if the elementary
19opt-in was included in an optional elementary unit district at
20the optional elementary unit district's original effective
21date. If the calculation in this paragraph (6) is less than
22that calculated in paragraph (5) of this subsection (a) at the
23optional elementary unit district's original effective date,
24then no adjustments may be made. If the calculation in this
25paragraph (6) is more than that calculated in paragraph (5) of
26this subsection (a) at the optional elementary unit district's

 

 

09800SB0016sam001- 182 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 183 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 184 -LRB098 04277 NHT 57820 a

1made to the annexing district for the first 4 years of
2existence after the annexation, equal to the difference
3multiplied by the ratio of student enrollment in the territory
4detached to the total student enrollment in the district losing
5territory for the year prior to the effective date of the
6annexation. The amount of the total difference and the
7proportion paid to the annexing district shall be computed by
8the State Board of Education on the basis of pupil enrollment
9and other data that must be submitted to the State Board of
10Education in accordance with Section 7-14A of this Code. The
11changes to this Section made by Public Act 95-707 are intended
12to be retroactive and applicable to any annexation taking
13effect on or after July 1, 2004. For annexations that are
14eligible for payments under this paragraph (6.5) and that are
15effective on or after July 1, 2004, but before January 11, 2008
16(the effective date of Public Act 95-707), the first required
17yearly payment under this paragraph (6.5) shall be paid in the
18fiscal year of January 11, 2008 (the effective date of Public
19Act 95-707). Subsequent required yearly payments shall be paid
20in subsequent fiscal years until the payment obligation under
21this paragraph (6.5) is complete.
22    (7) Claims for financial assistance under this subsection
23(a) may not be recomputed except as expressly provided under
24Section 18-8.05 or 18-8.15 of this Code.
25    (8) Any supplementary payment made under this subsection
26(a) must be treated as separate from all other payments made

 

 

09800SB0016sam001- 185 -LRB098 04277 NHT 57820 a

1pursuant to Section 18-8.05 or 18-8.15 of this Code.
2    (b)(1) After the formation of a combined school district,
3as defined in Section 11E-20 of this Code, or a unit district,
4as defined in Section 11E-25 of this Code, a computation shall
5be made to determine the difference between the salaries
6effective in each of the previously existing districts on June
730, prior to the creation of the new district. For the first 4
8years after the formation of the new district, a supplementary
9State aid reimbursement shall be paid to the new district equal
10to the difference between the sum of the salaries earned by
11each of the certificated members of the new district, while
12employed in one of the previously existing districts during the
13year immediately preceding the formation of the new district,
14and the sum of the salaries those certificated members would
15have been paid during the year immediately prior to the
16formation of the new district if placed on the salary schedule
17of the previously existing district with the highest salary
18schedule.
19    (2) After the territory of one or more school districts is
20annexed by one or more other school districts as defined in
21Article 7 of this Code, a computation shall be made to
22determine the difference between the salaries effective in each
23annexed district and in the annexing district or districts as
24they were each constituted on June 30 preceding the date when
25the change of boundaries attributable to the annexation became
26effective for all purposes, as determined under Section 7-9 of

 

 

09800SB0016sam001- 186 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 187 -LRB098 04277 NHT 57820 a

1previously existing districts that formed the partial
2elementary unit district, and the sum of the salaries those
3certified members would have been paid if placed on the salary
4schedule of the previously existing district with the highest
5salary schedule. The salary schedules used in the calculation
6shall be those in effect in the previously existing districts
7for the school year prior to the creation of the new partial
8elementary unit district.
9    (5) For an elementary district opt-in, as described in
10subsection (d) of Section 11E-30 of this Code, the salary
11difference incentive shall be computed in accordance with
12paragraph (4) of this subsection (b) as if the opted-in
13elementary district was included in the optional elementary
14unit district at the optional elementary unit district's
15original effective date. If the calculation in this paragraph
16(5) is less than that calculated in paragraph (4) of this
17subsection (b) at the optional elementary unit district's
18original effective date, then no adjustments may be made. If
19the calculation in this paragraph (5) is more than that
20calculated in paragraph (4) of this subsection (b) at the
21optional elementary unit district's original effective date,
22then the excess must be paid as follows:
23        (A) If the effective date for the elementary opt-in is
24    one year after the effective date for the optional
25    elementary unit district, 100% of the calculated excess
26    shall be paid to the optional elementary unit district in

 

 

09800SB0016sam001- 188 -LRB098 04277 NHT 57820 a

1    each of the first 4 years after the effective date of the
2    elementary opt-in.
3        (B) If the effective date for the elementary opt-in is
4    2 years after the effective date for the optional
5    elementary unit district, 75% of the calculated excess
6    shall be paid to the optional elementary unit district in
7    each of the first 4 years after the effective date of the
8    elementary opt-in.
9        (C) If the effective date for the elementary opt-in is
10    3 years after the effective date for the optional
11    elementary unit district, 50% of the calculated excess
12    shall be paid to the optional elementary unit district in
13    each of the first 4 years after the effective date of the
14    elementary opt-in.
15        (D) If the effective date for the elementary opt-in is
16    4 years after the effective date for the partial elementary
17    unit district, 25% of the calculated excess shall be paid
18    to the optional elementary unit district in each of the
19    first 4 years after the effective date of the elementary
20    opt-in.
21        (E) If the effective date for the elementary opt-in is
22    5 years after the effective date for the optional
23    elementary unit district, the optional elementary unit
24    district is not eligible for any additional incentives due
25    to the elementary opt-in.
26    (5.5) After the formation of a cooperative high school by 2

 

 

09800SB0016sam001- 189 -LRB098 04277 NHT 57820 a

1or more school districts under Section 10-22.22c of this Code,
2a computation shall be made to determine the difference between
3the salaries effective in each of the previously existing high
4schools on June 30 prior to the formation of the cooperative
5high school. For the first 4 years after the formation of the
6cooperative high school, a supplementary State aid
7reimbursement shall be paid to the cooperative high school
8equal to the difference between the sum of the salaries earned
9by each of the certificated members of the cooperative high
10school while employed in one of the previously existing high
11schools during the year immediately preceding the formation of
12the cooperative high school and the sum of the salaries those
13certificated members would have been paid during the year
14immediately prior to the formation of the cooperative high
15school if placed on the salary schedule of the previously
16existing high school with the highest salary schedule.
17    (5.10) After the annexation of territory detached from
18another school district whereby the enrollment of the annexing
19district increases by 90% or more as a result of the
20annexation, a computation shall be made to determine the
21difference between the salaries effective in the district
22gaining territory and the district losing territory as they
23each were constituted on June 30 preceding the date when the
24change of boundaries attributable to the annexation became
25effective for all purposes as determined under Section 7-9 of
26this Code. For the first 4 years after the annexation, a

 

 

09800SB0016sam001- 190 -LRB098 04277 NHT 57820 a

1supplementary State aid reimbursement shall be paid to the
2annexing district equal to the difference between the sum of
3the salaries earned by each of the certificated members of the
4annexing district as constituted after the annexation while
5employed in the district gaining territory or the district
6losing territory during the year immediately preceding the
7annexation and the sum of the salaries those certificated
8members would have been paid during such immediately preceding
9year if placed on the salary schedule of whichever of the
10district gaining territory or district losing territory had the
11highest salary schedule during the immediately preceding year.
12To be eligible for supplementary State aid reimbursement under
13this Section, the intergovernmental agreement to be submitted
14pursuant to Section 7-14A of this Code must show that staff
15members were transferred from the control of the district
16losing territory to the control of the district gaining
17territory in the annexation. The changes to this Section made
18by Public Act 95-707 are intended to be retroactive and
19applicable to any annexation taking effect on or after July 1,
202004. For annexations that are eligible for payments under this
21paragraph (5.10) and that are effective on or after July 1,
222004, but before January 11, 2008 (the effective date of Public
23Act 95-707), the first required yearly payment under this
24paragraph (5.10) shall be paid in the fiscal year of January
2511, 2008 (the effective date of Public Act 95-707). Subsequent
26required yearly payments shall be paid in subsequent fiscal

 

 

09800SB0016sam001- 191 -LRB098 04277 NHT 57820 a

1years until the payment obligation under this paragraph (5.10)
2is complete.
3    (5.15) After the deactivation of a school facility in
4accordance with Section 10-22.22b of this Code, a computation
5shall be made to determine the difference between the salaries
6effective in the sending school district and each receiving
7school district on June 30 prior to the deactivation of the
8school facility. For the lesser of the first 4 years after the
9deactivation of the school facility or the length of the
10deactivation agreement, including any renewals of the original
11deactivation agreement, a supplementary State aid
12reimbursement shall be paid to each receiving district equal to
13the difference between the sum of the salaries earned by each
14of the certificated members transferred to that receiving
15district as a result of the deactivation while employed in the
16sending district during the year immediately preceding the
17deactivation and the sum of the salaries those certificated
18members would have been paid during the year immediately
19preceding the deactivation if placed on the salary schedule of
20the sending or receiving district with the highest salary
21schedule.
22    (6) The supplementary State aid reimbursement under this
23subsection (b) shall be treated as separate from all other
24payments made pursuant to Section 18-8.05 of this Code. In the
25case of the formation of a new district or cooperative high
26school or a deactivation, reimbursement shall begin during the

 

 

09800SB0016sam001- 192 -LRB098 04277 NHT 57820 a

1first year of operation of the new district or cooperative high
2school or the first year of the deactivation, and in the case
3of an annexation of the territory of one or more school
4districts by one or more other school districts or the
5annexation of territory detached from a school district whereby
6the enrollment of the annexing district increases by 90% or
7more as a result of the annexation, reimbursement shall begin
8during the first year when the change in boundaries
9attributable to the annexation becomes effective for all
10purposes as determined pursuant to Section 7-9 of this Code,
11except that for an annexation of territory detached from a
12school district that is effective on or after July 1, 2004, but
13before January 11, 2008 (the effective date of Public Act
1495-707), whereby the enrollment of the annexing district
15increases by 90% or more as a result of the annexation,
16reimbursement shall begin during the fiscal year of January 11,
172008 (the effective date of Public Act 95-707). Each year that
18the new, annexing, or receiving district or cooperative high
19school, as the case may be, is entitled to receive
20reimbursement, the number of eligible certified members who are
21employed on October 1 in the district or cooperative high
22school shall be certified to the State Board of Education on
23prescribed forms by October 15 and payment shall be made on or
24before November 15 of that year.
25    (c)(1) For the first year after the formation of a combined
26school district, as defined in Section 11E-20 of this Code or a

 

 

09800SB0016sam001- 193 -LRB098 04277 NHT 57820 a

1unit district, as defined in Section 11E-25 of this Code, a
2computation shall be made totaling each previously existing
3district's audited fund balances in the educational fund,
4working cash fund, operations and maintenance fund, and
5transportation fund for the year ending June 30 prior to the
6referendum for the creation of the new district. The new
7district shall be paid supplementary State aid equal to the sum
8of the differences between the deficit of the previously
9existing district with the smallest deficit and the deficits of
10each of the other previously existing districts.
11    (2) For the first year after the annexation of all of the
12territory of one or more entire school districts by another
13school district, as defined in Article 7 of this Code,
14computations shall be made, for the year ending June 30 prior
15to the date that the change of boundaries attributable to the
16annexation is allowed by the affirmative decision issued by the
17regional board of school trustees under Section 7-6 of this
18Code, notwithstanding any effort to seek administrative review
19of the decision, totaling the annexing district's and totaling
20each annexed district's audited fund balances in their
21respective educational, working cash, operations and
22maintenance, and transportation funds. The annexing district
23as constituted after the annexation shall be paid supplementary
24State aid equal to the sum of the differences between the
25deficit of whichever of the annexing or annexed districts as
26constituted prior to the annexation had the smallest deficit

 

 

09800SB0016sam001- 194 -LRB098 04277 NHT 57820 a

1and the deficits of each of the other districts as constituted
2prior to the annexation.
3    (3) For the first year after the annexation of all of the
4territory of one or more entire school districts by 2 or more
5other school districts, as defined by Article 7 of this Code,
6computations shall be made, for the year ending June 30 prior
7to the date that the change of boundaries attributable to the
8annexation is allowed by the affirmative decision of the
9regional board of school trustees under Section 7-6 of this
10Code, notwithstanding any action for administrative review of
11the decision, totaling each annexing and annexed district's
12audited fund balances in their respective educational, working
13cash, operations and maintenance, and transportation funds.
14The annexing districts as constituted after the annexation
15shall be paid supplementary State aid, allocated as provided in
16this paragraph (3), in an aggregate amount equal to the sum of
17the differences between the deficit of whichever of the
18annexing or annexed districts as constituted prior to the
19annexation had the smallest deficit and the deficits of each of
20the other districts as constituted prior to the annexation. The
21aggregate amount of the supplementary State aid payable under
22this paragraph (3) shall be allocated between or among the
23annexing districts as follows:
24        (A) the regional superintendent of schools for each
25    educational service region in which an annexed district is
26    located prior to the annexation shall certify to the State

 

 

09800SB0016sam001- 195 -LRB098 04277 NHT 57820 a

1    Board of Education, on forms that it shall provide for that
2    purpose, the value of all taxable property in each annexed
3    district, as last equalized or assessed by the Department
4    of Revenue prior to the annexation, and the equalized
5    assessed value of each part of the annexed district that
6    was annexed to or included as a part of an annexing
7    district;
8        (B) using equalized assessed values as certified by the
9    regional superintendent of schools under clause (A) of this
10    paragraph (3), the combined audited fund balance deficit of
11    each annexed district as determined under this Section
12    shall be apportioned between or among the annexing
13    districts in the same ratio as the equalized assessed value
14    of that part of the annexed district that was annexed to or
15    included as a part of an annexing district bears to the
16    total equalized assessed value of the annexed district; and
17        (C) the aggregate supplementary State aid payment
18    under this paragraph (3) shall be allocated between or
19    among, and shall be paid to, the annexing districts in the
20    same ratio as the sum of the combined audited fund balance
21    deficit of each annexing district as constituted prior to
22    the annexation, plus all combined audited fund balance
23    deficit amounts apportioned to that annexing district
24    under clause (B) of this subsection, bears to the aggregate
25    of the combined audited fund balance deficits of all of the
26    annexing and annexed districts as constituted prior to the

 

 

09800SB0016sam001- 196 -LRB098 04277 NHT 57820 a

1    annexation.
2    (4) For the new elementary districts and new high school
3district formed through a school district conversion, as
4defined in Section 11E-15 of this Code or the new elementary
5district or districts and new combined high school - unit
6district formed through a multi-unit conversion, as defined in
7subsection (b) of Section 11E-30 of this Code, a computation
8shall be made totaling each previously existing district's
9audited fund balances in the educational fund, working cash
10fund, operations and maintenance fund, and transportation fund
11for the year ending June 30 prior to the referendum
12establishing the new districts. In the first year of the new
13districts, the State shall make a one-time supplementary
14payment equal to the sum of the differences between the deficit
15of the previously existing district with the smallest deficit
16and the deficits of each of the other previously existing
17districts. A district with a combined balance among the 4 funds
18that is positive shall be considered to have a deficit of zero.
19The supplementary payment shall be allocated among the newly
20formed high school and elementary districts in the manner
21provided by the petition for the formation of the districts, in
22the form in which the petition is approved by the regional
23superintendent of schools or State Superintendent of Education
24under Section 11E-50 of this Code.
25    (5) For each newly created partial elementary unit
26district, as defined in subsection (a) or (c) of Section 11E-30

 

 

09800SB0016sam001- 197 -LRB098 04277 NHT 57820 a

1of this Code, a computation shall be made totaling the audited
2fund balances of each previously existing district that formed
3the new partial elementary unit district in the educational
4fund, working cash fund, operations and maintenance fund, and
5transportation fund for the year ending June 30 prior to the
6referendum for the formation of the partial elementary unit
7district. In the first year of the new partial elementary unit
8district, the State shall make a one-time supplementary payment
9to the new district equal to the sum of the differences between
10the deficit of the previously existing district with the
11smallest deficit and the deficits of each of the other
12previously existing districts. A district with a combined
13balance among the 4 funds that is positive shall be considered
14to have a deficit of zero.
15    (6) For an elementary opt-in as defined in subsection (d)
16of Section 11E-30 of this Code, the deficit fund balance
17incentive shall be computed in accordance with paragraph (5) of
18this subsection (c) as if the opted-in elementary was included
19in the optional elementary unit district at the optional
20elementary unit district's original effective date. If the
21calculation in this paragraph (6) is less than that calculated
22in paragraph (5) of this subsection (c) at the optional
23elementary unit district's original effective date, then no
24adjustments may be made. If the calculation in this paragraph
25(6) is more than that calculated in paragraph (5) of this
26subsection (c) at the optional elementary unit district's

 

 

09800SB0016sam001- 198 -LRB098 04277 NHT 57820 a

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

 

 

09800SB0016sam001- 199 -LRB098 04277 NHT 57820 a

1        (E) If the effective date for the elementary opt-in is
2    5 years after the effective date for the optional
3    elementary unit district, the optional elementary unit
4    district is not eligible for any additional incentives due
5    to the elementary opt-in.
6    (6.5) For the first year after the annexation of territory
7detached from another school district whereby the enrollment of
8the annexing district increases by 90% or more as a result of
9the annexation, a computation shall be made totaling the
10audited fund balances of the district gaining territory and the
11audited fund balances of the district losing territory in the
12educational fund, working cash fund, operations and
13maintenance fund, and transportation fund for the year ending
14June 30 prior to the date that the change of boundaries
15attributable to the annexation is allowed by the affirmative
16decision of the regional board of school trustees under Section
177-6 of this Code, notwithstanding any action for administrative
18review of the decision. The annexing district as constituted
19after the annexation shall be paid supplementary State aid
20equal to the difference between the deficit of whichever
21district included in this calculation as constituted prior to
22the annexation had the smallest deficit and the deficit of each
23other district included in this calculation as constituted
24prior to the annexation, multiplied by the ratio of equalized
25assessed value of the territory detached to the total equalized
26assessed value of the district losing territory. The regional

 

 

09800SB0016sam001- 200 -LRB098 04277 NHT 57820 a

1superintendent of schools for the educational service region in
2which a district losing territory is located prior to the
3annexation shall certify to the State Board of Education the
4value of all taxable property in the district losing territory
5and the value of all taxable property in the territory being
6detached, as last equalized or assessed by the Department of
7Revenue prior to the annexation. To be eligible for
8supplementary State aid reimbursement under this Section, the
9intergovernmental agreement to be submitted pursuant to
10Section 7-14A of this Code must show that fund balances were
11transferred from the district losing territory to the district
12gaining territory in the annexation. The changes to this
13Section made by Public Act 95-707 are intended to be
14retroactive and applicable to any annexation taking effect on
15or after July 1, 2004. For annexations that are eligible for
16payments under this paragraph (6.5) and that are effective on
17or after July 1, 2004, but before January 11, 2008 (the
18effective date of Public Act 95-707), the required payment
19under this paragraph (6.5) shall be paid in the fiscal year of
20January 11, 2008 (the effective date of Public Act 95-707).
21    (7) For purposes of any calculation required under
22paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
23subsection (c), a district with a combined fund balance that is
24positive shall be considered to have a deficit of zero. For
25purposes of determining each district's audited fund balances
26in its educational fund, working cash fund, operations and

 

 

09800SB0016sam001- 201 -LRB098 04277 NHT 57820 a

1maintenance fund, and transportation fund for the specified
2year ending June 30, as provided in paragraphs (1), (2), (3),
3(4), (5), (6), and (6.5) of this subsection (c), the balance of
4each fund shall be deemed decreased by an amount equal to the
5amount of the annual property tax theretofore levied in the
6fund by the district for collection and payment to the district
7during the calendar year in which the June 30 fell, but only to
8the extent that the tax so levied in the fund actually was
9received by the district on or before or comprised a part of
10the fund on such June 30. For purposes of determining each
11district's audited fund balances, a calculation shall be made
12for each fund to determine the average for the 3 years prior to
13the specified year ending June 30, as provided in paragraphs
14(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
15of the district's expenditures in the categories "purchased
16services", "supplies and materials", and "capital outlay", as
17those categories are defined in rules of the State Board of
18Education. If this 3-year average is less than the district's
19expenditures in these categories for the specified year ending
20June 30, as provided in paragraphs (1), (2), (3), (4), (5),
21(6), and (6.5) of this subsection (c), then the 3-year average
22shall be used in calculating the amounts payable under this
23Section in place of the amounts shown in these categories for
24the specified year ending June 30, as provided in paragraphs
25(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
26Any deficit because of State aid not yet received may not be

 

 

09800SB0016sam001- 202 -LRB098 04277 NHT 57820 a

1considered in determining the June 30 deficits. The same basis
2of accounting shall be used by all previously existing
3districts and by all annexing or annexed districts, as
4constituted prior to the annexation, in making any computation
5required under paragraphs (1), (2), (3), (4), (5), (6), and
6(6.5) of this subsection (c).
7    (8) The supplementary State aid payments under this
8subsection (c) shall be treated as separate from all other
9payments made pursuant to Section 18-8.05 of this Code.
10    (d)(1) Following the formation of a combined school
11district, as defined in Section 11E-20 of this Code, a new unit
12district, as defined in Section 11E-25 of this Code, a new
13elementary district or districts and a new high school district
14formed through a school district conversion, as defined in
15Section 11E-15 of this Code, a new partial elementary unit
16district, as defined in Section 11E-30 of this Code, or a new
17elementary district or districts formed through a multi-unit
18conversion, as defined in subsection (b) of Section 11E-30 of
19this Code, or the annexation of all of the territory of one or
20more entire school districts by one or more other school
21districts, as defined in Article 7 of this Code, a
22supplementary State aid reimbursement shall be paid for the
23number of school years determined under the following table to
24each new or annexing district equal to the sum of $4,000 for
25each certified employee who is employed by the district on a
26full-time basis for the regular term of the school year:
 

 

 

 

09800SB0016sam001- 203 -LRB098 04277 NHT 57820 a

1Reorganized District's RankReorganized District's Rank
2by type of district (unit,in Average Daily Attendance
3high school, elementary)By Quintile
4in Equalized Assessed Value
5Per Pupil by Quintile
63rd, 4th,
71st2ndor 5th
8QuintileQuintileQuintile
9    1st Quintile1 year1 year1 year
10    2nd Quintile1 year2 years2 years
11    3rd Quintile2 years3 years3 years
12    4th Quintile2 years3 years3 years
13    5th Quintile2 years3 years3 years
14The State Board of Education shall make a one-time calculation
15of a reorganized district's quintile ranks. The average daily
16attendance used in this calculation shall be the best 3 months'
17average daily attendance for the district's first year. The
18equalized assessed value per pupil shall be the district's real
19property equalized assessed value used in calculating the
20district's first-year general State aid claim, under Section
2118-8.05 of this Code, or first-year primary State aid claim,
22under Section 18-8.15 of this Code, as applicable, divided by
23the best 3 months' average daily attendance.
24    No annexing or resulting school district shall be entitled

 

 

09800SB0016sam001- 204 -LRB098 04277 NHT 57820 a

1to supplementary State aid under this subsection (d) unless the
2district acquires at least 30% of the average daily attendance
3of the district from which the territory is being detached or
4divided.
5    If a district results from multiple reorganizations that
6would otherwise qualify the district for multiple payments
7under this subsection (d) in any year, then the district shall
8receive a single payment only for that year based solely on the
9most recent reorganization.
10    (2) For an elementary opt-in, as defined in subsection (d)
11of Section 11E-30 of this Code, the full-time certified staff
12incentive shall be computed in accordance with paragraph (1) of
13this subsection (d), equal to the sum of $4,000 for each
14certified employee of the elementary district that opts-in who
15is employed by the optional elementary unit district on a
16full-time basis for the regular term of the school year. The
17calculation from this paragraph (2) must be paid as follows:
18        (A) If the effective date for the elementary opt-in is
19    one year after the effective date for the optional
20    elementary unit district, 100% of the amount calculated in
21    this paragraph (2) shall be paid to the optional elementary
22    unit district for the number of years calculated in
23    paragraph (1) of this subsection (d) at the optional
24    elementary unit district's original effective date,
25    starting in the second year after the effective date of the
26    elementary opt-in.

 

 

09800SB0016sam001- 205 -LRB098 04277 NHT 57820 a

1        (B) If the effective date for the elementary opt-in is
2    2 years after the effective date for the optional
3    elementary unit district, 75% of the amount calculated in
4    this paragraph (2) shall be paid to the optional elementary
5    unit district for the number of years calculated in
6    paragraph (1) of this subsection (d) at the optional
7    elementary unit district's original effective date,
8    starting in the second year after the effective date of the
9    elementary opt-in.
10        (C) If the effective date for the elementary opt-in is
11    3 years after the effective date for the optional
12    elementary unit district, 50% of the amount calculated in
13    this paragraph (2) shall be paid to the optional elementary
14    unit district for the number of years calculated in
15    paragraph (1) of this subsection (d) at the optional
16    elementary unit district's original effective date,
17    starting in the second year after the effective date of the
18    elementary opt-in.
19        (D) If the effective date for the elementary opt-in is
20    4 years after the effective date for the optional
21    elementary unit district, 25% of the amount calculated in
22    this paragraph (2) shall be paid to the optional elementary
23    unit district for the number of years calculated in
24    paragraph (1) of this subsection (d) at the optional
25    elementary unit district's original effective date,
26    starting in the second year after the effective date of the

 

 

09800SB0016sam001- 206 -LRB098 04277 NHT 57820 a

1    elementary opt-in.
2        (E) If the effective date for the elementary opt-in is
3    5 years after the effective date for the optional
4    elementary unit district, the optional elementary unit
5    district is not eligible for any additional incentives due
6    to the elementary opt-in.
7    (2.5) Following the formation of a cooperative high school
8by 2 or more school districts under Section 10-22.22c of this
9Code, a supplementary State aid reimbursement shall be paid for
103 school years to the cooperative high school equal to the sum
11of $4,000 for each certified employee who is employed by the
12cooperative high school on a full-time basis for the regular
13term of any such school year. If a cooperative high school
14results from multiple agreements that would otherwise qualify
15the cooperative high school for multiple payments under this
16Section in any year, the cooperative high school shall receive
17a single payment for that year based solely on the most recent
18agreement.
19    (2.10) Following the annexation of territory detached from
20another school district whereby the enrollment of the annexing
21district increases 90% or more as a result of the annexation, a
22supplementary State aid reimbursement shall be paid to the
23annexing district equal to the sum of $4,000 for each certified
24employee who is employed by the annexing district on a
25full-time basis and shall be calculated in accordance with
26subsection (a) of this Section. To be eligible for

 

 

09800SB0016sam001- 207 -LRB098 04277 NHT 57820 a

1supplementary State aid reimbursement under this Section, the
2intergovernmental agreement to be submitted pursuant to
3Section 7-14A of this Code must show that certified staff
4members were transferred from the control of the district
5losing territory to the control of the district gaining
6territory in the annexation. The changes to this Section made
7by Public Act 95-707 are intended to be retroactive and
8applicable to any annexation taking effect on or after July 1,
92004. For annexations that are eligible for payments under this
10paragraph (2.10) and that are effective on or after July 1,
112004, but before January 11, 2008 (the effective date of Public
12Act 95-707), the first required yearly payment under this
13paragraph (2.10) shall be paid in the second fiscal year after
14January 11, 2008 (the effective date of Public Act 95-707). Any
15subsequent required yearly payments shall be paid in subsequent
16fiscal years until the payment obligation under this paragraph
17(2.10) is complete.
18    (2.15) Following the deactivation of a school facility in
19accordance with Section 10-22.22b of this Code, a supplementary
20State aid reimbursement shall be paid for the lesser of 3
21school years or the length of the deactivation agreement,
22including any renewals of the original deactivation agreement,
23to each receiving school district equal to the sum of $4,000
24for each certified employee who is employed by that receiving
25district on a full-time basis for the regular term of any such
26school year who was originally transferred to the control of

 

 

09800SB0016sam001- 208 -LRB098 04277 NHT 57820 a

1that receiving district as a result of the deactivation.
2Receiving districts are eligible for payments under this
3paragraph (2.15) based on the certified employees transferred
4to that receiving district as a result of the deactivation and
5are not required to receive at least 30% of the deactivating
6district's average daily attendance as required under
7paragraph (1) of this subsection (d) to be eligible for
8payments.
9    (3) The supplementary State aid reimbursement payable
10under this subsection (d) shall be separate from and in
11addition to all other payments made to the district pursuant to
12any other Section of this Article.
13    (4) During May of each school year for which a
14supplementary State aid reimbursement is to be paid to a new,
15annexing, or receiving school district or cooperative high
16school pursuant to this subsection (d), the school board or
17governing board shall certify to the State Board of Education,
18on forms furnished to the school board or governing board by
19the State Board of Education for purposes of this subsection
20(d), the number of certified employees for which the district
21or cooperative high school is entitled to reimbursement under
22this Section, together with the names, certificate numbers, and
23positions held by the certified employees.
24    (5) Upon certification by the State Board of Education to
25the State Comptroller of the amount of the supplementary State
26aid reimbursement to which a school district or cooperative

 

 

09800SB0016sam001- 209 -LRB098 04277 NHT 57820 a

1high school is entitled under this subsection (d), the State
2Comptroller shall draw his or her warrant upon the State
3Treasurer for the payment thereof to the school district or
4cooperative high school and shall promptly transmit the payment
5to the school district or cooperative high school through the
6appropriate school treasurer.
7(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
895-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
 
9    (105 ILCS 5/13A-8)
10    Sec. 13A-8. Funding.
11    (a) The State of Illinois shall provide funding for the
12alternative school programs within each educational service
13region and within the Chicago public school system by line item
14appropriation made to the State Board of Education for that
15purpose. This money, when appropriated, shall be provided to
16the regional superintendent and to the Chicago Board of
17Education, who shall establish a budget, including salaries,
18for their alternative school programs. Each program shall
19receive funding in the amount of $30,000 plus an amount based
20on the ratio of the region's or Chicago's best 3 months'
21average daily attendance in grades pre-kindergarten through 12
22to the statewide totals of these amounts. For purposes of this
23calculation, the best 3 months' average daily attendance for
24each region or Chicago shall be calculated by adding to the
25best 3 months' average daily attendance the number of

 

 

09800SB0016sam001- 210 -LRB098 04277 NHT 57820 a

1low-income students identified in the most recently available
2federal census multiplied by one-half times the percentage of
3the region's or Chicago's low-income students to the State's
4total low-income students. The State Board of Education shall
5retain up to 1.1% of the appropriation to be used to provide
6technical assistance, professional development, and
7evaluations for the programs.
8    (a-5) Notwithstanding any other provisions of this
9Section, for the 1998-1999 fiscal year, the total amount
10distributed under subsection (a) for an alternative school
11program shall be not less than the total amount that was
12distributed under that subsection for that alternative school
13program for the 1997-1998 fiscal year. If an alternative school
14program is to receive a total distribution under subsection (a)
15for the 1998-1999 fiscal year that is less than the total
16distribution that the program received under that subsection
17for the 1997-1998 fiscal year, that alternative school program
18shall also receive, from a separate appropriation made for
19purposes of this subsection (a-5), a supplementary payment
20equal to the amount by which its total distribution under
21subsection (a) for the 1997-1998 fiscal year exceeds the amount
22of the total distribution that the alternative school program
23receives under that subsection for the 1998-1999 fiscal year.
24If the amount appropriated for supplementary payments to
25alternative school programs under this subsection (a-5) is
26insufficient for that purpose, those supplementary payments

 

 

09800SB0016sam001- 211 -LRB098 04277 NHT 57820 a

1shall be prorated among the alternative school programs
2entitled to receive those supplementary payments according to
3the aggregate amount of the appropriation made for purposes of
4this subsection (a-5).
5    (b) An alternative school program shall be entitled to
6receive general State aid as calculated in subsection (K) of
7Section 18-8.05 or primary State aid as calculated in
8subsection (i) of Section 18-8.15 upon filing a claim as
9provided therein. Any time that a student who is enrolled in an
10alternative school program spends in work-based learning,
11community service, or a similar alternative educational
12setting shall be included in determining the student's minimum
13number of clock hours of daily school work that constitute a
14day of attendance for purposes of calculating general State aid
15or primary State aid.
16    (c) An alternative school program may receive additional
17funding from its school districts in such amount as may be
18agreed upon by the parties and necessary to support the
19program. In addition, an alternative school program is
20authorized to accept and expend gifts, legacies, and grants,
21including but not limited to federal grants, from any source
22for purposes directly related to the conduct and operation of
23the program.
24(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
2589-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;
2690-802, eff. 12-15-98.)
 

 

 

09800SB0016sam001- 212 -LRB098 04277 NHT 57820 a

1    (105 ILCS 5/13B-20.20)
2    Sec. 13B-20.20. Enrollment in other programs. General
3Educational Development preparation programs are not eligible
4for funding under this Article. A student may enroll in a
5program approved under Section 18-8.05 or 18-8.15 of this Code,
6as appropriate, or attend both the alternative learning
7opportunities program and the regular school program to enhance
8student performance and facilitate on-time graduation.
9(Source: P.A. 92-42, eff. 1-1-02.)
 
10    (105 ILCS 5/13B-45)
11    Sec. 13B-45. Days and hours of attendance. An alternative
12learning opportunities program shall provide students with at
13least the minimum number of days of pupil attendance required
14under Section 10-19 of this Code and the minimum number of
15daily hours of school work required under Section 18-8.05 or
1618-8.15 of this Code, provided that the State Board may approve
17exceptions to these requirements if the program meets all of
18the following conditions:
19        (1) The district plan submitted under Section
20    13B-25.15 of this Code establishes that a program providing
21    the required minimum number of days of attendance or daily
22    hours of school work would not serve the needs of the
23    program's students.
24        (2) Each day of attendance shall provide no fewer than

 

 

09800SB0016sam001- 213 -LRB098 04277 NHT 57820 a

1    3 clock hours of school work, as defined under paragraph
2    (1) of subsection (F) of Section 18-8.05 or subsection (f)
3    of Section 18-8.15 of this Code.
4        (3) Each day of attendance that provides fewer than 5
5    clock hours of school work shall also provide supplementary
6    services, including without limitation work-based
7    learning, student assistance programs, counseling, case
8    management, health and fitness programs, or life-skills or
9    conflict resolution training, in order to provide a total
10    daily program to the student of 5 clock hours. A program
11    may claim general State aid or primary State aid for up to
12    2 hours of the time each day that a student is receiving
13    supplementary services.
14        (4) Each program shall provide no fewer than 174 days
15    of actual pupil attendance during the school term; however,
16    approved evening programs that meet the requirements of
17    Section 13B-45 of this Code may offer less than 174 days of
18    actual pupil attendance during the school term.
19(Source: P.A. 92-42, eff. 1-1-02.)
 
20    (105 ILCS 5/13B-50)
21    Sec. 13B-50. Eligibility to receive general State aid or
22primary State aid. In order to receive general State aid or
23primary State aid, alternative learning opportunities programs
24must meet the requirements for claiming general State aid as
25specified in Section 18-8.05 of this Code or primary State aid

 

 

09800SB0016sam001- 214 -LRB098 04277 NHT 57820 a

1as specified in Section 18-8.15 of this Code, as applicable,
2with the exception of the length of the instructional day,
3which may be less than 5 hours of school work if the program
4meets the criteria set forth under Sections 13B-50.5 and
513B-50.10 of this Code and if the program is approved by the
6State Board.
7(Source: P.A. 92-42, eff. 1-1-02.)
 
8    (105 ILCS 5/13B-50.10)
9    Sec. 13B-50.10. Additional criteria for general State aid
10or primary State aid. In order to claim general State aid or
11primary State aid, an alternative learning opportunities
12program must meet the following criteria:
13    (1) Teacher professional development plans should include
14education in the instruction of at-risk students.
15    (2) Facilities must meet the health, life, and safety
16requirements in this Code.
17    (3) The program must comply with all other State and
18federal laws applicable to education providers.
19(Source: P.A. 92-42, eff. 1-1-02.)
 
20    (105 ILCS 5/13B-50.15)
21    Sec. 13B-50.15. Level of funding. Approved alternative
22learning opportunities programs are entitled to claim general
23State aid or primary State aid, subject to Sections 13B-50,
2413B-50.5, and 13B-50.10 of this Code. Approved programs

 

 

09800SB0016sam001- 215 -LRB098 04277 NHT 57820 a

1operated by regional offices of education are entitled to
2receive general State aid or primary State aid at the
3foundation level of support. A school district or consortium
4must ensure that an approved program receives supplemental
5general State aid, transportation reimbursements, and special
6education resources, if appropriate, for students enrolled in
7the program.
8(Source: P.A. 92-42, eff. 1-1-02.)
 
9    (105 ILCS 5/14-7.02)  (from Ch. 122, par. 14-7.02)
10    Sec. 14-7.02. Children attending private schools, public
11out-of-state schools, public school residential facilities or
12nonpublic private special education facilities. The General
13Assembly recognizes that nonpublic non-public schools or
14special education facilities provide an important service in
15the educational system in Illinois.
16    If because of his or her disability the special education
17program of a district is unable to meet the needs of a child
18and the child attends a nonpublic non-public school or special
19education facility, a public out-of-state school, or a special
20education facility owned and operated by a county government
21unit that provides special educational services required by the
22child and is in compliance with the appropriate rules and
23regulations of the State Superintendent of Education, the
24school district in which the c