Sen. Andy Manar

Filed: 5/5/2014

 

 


 

 


 
09800SB0016sam002LRB098 04277 NHT 59066 a

1
AMENDMENT TO SENATE BILL 16

2    AMENDMENT NO. ______. Amend Senate Bill 16 as follows:
 
3on page 1, line 1, after "education", by inserting ", which may
4be referred to as the School Funding Reform Act of 2014"; and
 
5on page 1, by replacing lines 4 through 15 with the following:
 
6    "Section 905. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided

 

 

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

 

 

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

 

 

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1having taxable property in the economic development project
2area in the same manner and proportion as the most recent
3distribution by the county collector to those taxing districts
4of real property taxes from real property in the economic
5development project area.
6    Upon the payment of all economic development project costs,
7retirement of obligations and the distribution of any excess
8monies pursuant to this Section the municipality shall adopt an
9ordinance dissolving the special tax allocation fund for the
10economic development project area, terminating the economic
11development project area, and terminating the use of tax
12increment allocation financing for the economic development
13project area. Thereafter the rates of the taxing districts
14shall be extended and taxes levied, collected and distributed
15in the manner applicable in the absence of the adoption of tax
16increment allocation financing.
17    Nothing in this Section shall be construed as relieving
18property in economic development project areas from being
19assessed as provided in the Property Tax Code, or as relieving
20owners of that property from paying a uniform rate of taxes, as
21required by Section 4 of Article IX of the Illinois
22Constitution.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    Section 910. The State Finance Act is amended by changing
25Section 13.2 as follows:
 

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Coordination.
2    The State Treasurer is authorized to make transfers among
3line item appropriations from the Capital Litigation Trust
4Fund, with respect to costs incurred in fiscal years 2002 and
52003 only, when the balance remaining in one or more such line
6item appropriations is insufficient for the purpose for which
7the appropriation was made, provided that no such transfer may
8be made unless the amount transferred is no longer required for
9the purpose for which that appropriation was made.
10    The State Board of Education is authorized to make
11transfers from line item appropriations within the same
12treasury fund for General State Aid, and General State Aid -
13Hold Harmless, Primary State Aid, and Hold Harmless State
14Funding, provided that no such transfer may be made unless the
15amount transferred is no longer required for the purpose for
16which that appropriation was made, to the line item
17appropriation for Transitional Assistance when the balance
18remaining in such line item appropriation is insufficient for
19the purpose for which the appropriation was made.
20    The State Board of Education is authorized to make
21transfers between the following line item appropriations
22within the same treasury fund: Disabled Student
23Services/Materials (Section 14-13.01 of the School Code),
24Disabled Student Transportation Reimbursement (Section
2514-13.01 of the School Code), Disabled Student Tuition -
26Private Tuition (Section 14-7.02 of the School Code),

 

 

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1Extraordinary Special Education (Section 14-7.02b of the
2School Code), Reimbursement for Free Lunch/Breakfast Program,
3Summer School Payments (Section 18-4.3 of the School Code), and
4Transportation - Regular/Vocational Reimbursement (Section
529-5 of the School Code). Such transfers shall be made only
6when the balance remaining in one or more such line item
7appropriations is insufficient for the purpose for which the
8appropriation was made and 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 Department of Healthcare and Family Services is
12authorized to make transfers not exceeding 4% of the aggregate
13amount appropriated to it, within the same treasury fund, among
14the various line items appropriated for Medical Assistance.
15    (c) The sum of such transfers for an agency in a fiscal
16year shall not exceed 2% of the aggregate amount appropriated
17to it within the same treasury fund for the following objects:
18Personal Services; Extra Help; Student and Inmate
19Compensation; State Contributions to Retirement Systems; State
20Contributions to Social Security; State Contribution for
21Employee Group Insurance; Contractual Services; Travel;
22Commodities; Printing; Equipment; Electronic Data Processing;
23Operation of Automotive Equipment; Telecommunications
24Services; Travel and Allowance for Committed, Paroled and
25Discharged Prisoners; Library Books; Federal Matching Grants
26for Student Loans; Refunds; Workers' Compensation,

 

 

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

 

 

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

 

 

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1and the Governor. Transfers among appropriations to all other
2agencies require the approval of the Governor.
3    The officer responsible for approval shall certify that the
4transfer is necessary to carry out the programs and purposes
5for which the appropriations were made by the General Assembly
6and shall transmit to the State Comptroller a certified copy of
7the approval which shall set forth the specific amounts
8transferred so that the Comptroller may change his records
9accordingly. The Comptroller shall furnish the Governor with
10information copies of all transfers approved for agencies of
11the Legislative and Judicial departments and transfers
12approved by the constitutionally elected officials of the
13Executive branch other than the Governor, showing the amounts
14transferred and indicating the dates such changes were entered
15on the Comptroller's records.
16    (e) The State Board of Education, in consultation with the
17State Comptroller, may transfer line item appropriations for
18General State Aid or Primary State Aid between the Common
19School Fund and the Education Assistance Fund. With the advice
20and consent of the Governor's Office of Management and Budget,
21the State Board of Education, in consultation with the State
22Comptroller, may transfer line item appropriations between the
23General Revenue Fund and the Education Assistance Fund for the
24following programs:
25        (1) Disabled Student Personnel Reimbursement (Section
26    14-13.01 of the School Code);

 

 

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1        (2) Disabled Student Transportation Reimbursement
2    (subsection (b) of Section 14-13.01 of the School Code);
3        (3) Disabled Student Tuition - Private Tuition
4    (Section 14-7.02 of the School Code);
5        (4) Extraordinary Special Education (Section 14-7.02b
6    of the School Code);
7        (5) Reimbursement for Free Lunch/Breakfast Programs;
8        (6) Summer School Payments (Section 18-4.3 of the
9    School Code);
10        (7) Transportation - Regular/Vocational Reimbursement
11    (Section 29-5 of the School Code);
12        (8) Regular Education Reimbursement (Section 18-3 of
13    the School Code); and
14        (9) Special Education Reimbursement (Section 14-7.03
15    of the School Code).
16(Source: P.A. 97-689, eff. 7-1-12; 98-24, eff. 6-19-13.)
 
17    Section 915. The Property Tax Code is amended by changing
18Sections 18-200 and 18-249 as follows:
 
19    (35 ILCS 200/18-200)
20    Sec. 18-200. School Code. A school district's State aid
21shall not be reduced under the computation under subsections
225(a) through 5(h) of Part A of Section 18-8 of the School Code
23or under subsection (e) of Section 18-8.15 of the School Code
24due to the operating tax rate falling from above the minimum

 

 

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1requirement of that Section of the School Code to below the
2minimum requirement of that Section of the School Code due to
3the operation of this Law.
4(Source: P.A. 87-17; 88-455.)
 
5    (35 ILCS 200/18-249)
6    Sec. 18-249. Miscellaneous provisions.
7    (a) Certification of new property. For the 1994 levy year,
8the chief county assessment officer shall certify to the county
9clerk, after all changes by the board of review or board of
10appeals, as the case may be, the assessed value of new property
11by taxing district for the 1994 levy year under rules
12promulgated by the Department.
13    (b) School Code. A school district's State aid shall not be
14reduced under the computation under subsections 5(a) through
155(h) of Part A of Section 18-8 of the School Code or under
16subsection (e) of Section 18-8.15 of the School Code due to the
17operating tax rate falling from above the minimum requirement
18of that Section of the School Code to below the minimum
19requirement of that Section of the School Code due to the
20operation of this Law.
21    (c) Rules. The Department shall make and promulgate
22reasonable rules relating to the administration of the purposes
23and provisions of Sections 18-246 through 18-249 as may be
24necessary or appropriate.
25(Source: P.A. 89-1, eff. 2-12-95.)
 

 

 

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

 

 

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1the ordinance creating the district, a legal description of the
2district, a map of the district, identification of the year
3that the county clerk shall use for determining the total
4initial equalized assessed value of the district consistent
5with subsection (c), and a list of the parcel or tax
6identification number of each parcel of property included in
7the district.
8    (c) Upon approval of a STAR bond district, the county clerk
9immediately thereafter shall determine (i) the most recently
10ascertained equalized assessed value of each lot, block, tract,
11or parcel of real property within the STAR bond district, from
12which shall be deducted the homestead exemptions under Article
1315 of the Property Tax Code, which value shall be the initial
14equalized assessed value of each such piece of property, and
15(ii) the total equalized assessed value of all taxable real
16property within the district by adding together the most
17recently ascertained equalized assessed value of each taxable
18lot, block, tract, or parcel of real property within the
19district, from which shall be deducted the homestead exemptions
20under Article 15 of the Property Tax Code, and shall certify
21that amount as the total initial equalized assessed value of
22the taxable real property within the STAR bond district.
23    (d) In reference to any STAR bond district created within
24any political subdivision, and in respect to which the county
25clerk has certified the total initial equalized assessed value
26of the property in the area, the political subdivision may

 

 

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

 

 

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

 

 

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

 

 

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1and the amount of the tax that would have been deposited in the
2STAR Bonds School Improvement and Operations Trust Fund. The
3county collector shall hold that amount in a separate fund
4until the appeal process is final. After the appeal process is
5finalized, the county collector shall transmit to the
6Department the amount of tax that remains, if any, after all
7required refunds are made. The Department shall pay any amount
8deposited into the Trust Fund under this Section in the same
9proportion as determined for payments for that taxable year
10under subsection (h).
11    (j) In any year that ad valorem taxes are allocated to the
12STAR Bonds School Improvement and Operations Trust Fund, that
13allocation shall not reduce or otherwise impact the school aid
14provided to any school district under the general State school
15aid formula provided for in Section 18-8.05 of the School Code
16or the primary State aid formula provided for in Section
1718-8.15 of the School Code.
18(Source: P.A. 96-939, eff. 6-24-10.)
 
19    Section 925. The County Economic Development Project Area
20Property Tax Allocation Act is amended by changing Section 7 as
21follows:
 
22    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
23    Sec. 7. Creation of special tax allocation fund. If a
24county has adopted property tax allocation financing by

 

 

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

 

 

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1    assessed valuation of each taxable lot, block, tract, or
2    parcel of real property in the economic development project
3    are, over and above the initial equalized assessed value of
4    each property existing at the time property tax allocation
5    financing was adopted shall be allocated to and when
6    collected shall be paid to the county treasurer, who shall
7    deposit those taxes into a special fund called the special
8    tax allocation fund of the county for the purpose of paying
9    economic development project costs and obligations
10    incurred in the payment thereof.
11    The county, by an ordinance adopting property tax
12allocation financing, may pledge the funds in and to be
13deposited in the special tax allocation fund for the payment of
14obligations 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 such properties shall
19be used in calculating the general State school aid formula,
20provided for in Section 18-8 of the School Code, or the primary
21State aid formula, provided for in Section 18-8.15 of the
22School Code, until such time as all economic development
23projects costs have been paid as provided for in this Section.
24    Whenever a county issues bonds for the purpose of financing
25economic development project costs, the county may provide by
26ordinance for the appointment of a trustee, which may be any

 

 

09800SB0016sam002- 24 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 25 -LRB098 04277 NHT 59066 a

1project area.
2    Upon the payment of all economic development project costs,
3retirement of obligations and the distribution of any excess
4monies pursuant to this Section and not later than 23 years
5from the date of adoption of the ordinance adopting property
6tax allocation financing, the county shall adopt an ordinance
7dissolving the special tax allocation fund for the economic
8development project area and terminating the designation of the
9economic development project area as an economic development
10project area. Thereafter the rates of the taxing districts
11shall be extended and taxes levied, collected and distributed
12in the manner applicable in the absence of the adoption of
13property tax allocation financing.
14    Nothing in this Section shall be construed as relieving
15property in economic development project areas from being
16assessed as provided in the Property Tax Code or as relieving
17owners of that property from paying a uniform rate of taxes, as
18required by Section 4 of Article IX of the Illinois
19Constitution of 1970.
20(Source: P.A. 98-463, eff. 8-16-13.)
 
21    Section 930. The County Economic Development Project Area
22Tax Increment Allocation Act of 1991 is amended by changing
23Section 50 as follows:
 
24    (55 ILCS 90/50)  (from Ch. 34, par. 8050)

 

 

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

 

 

09800SB0016sam002- 27 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 28 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 29 -LRB098 04277 NHT 59066 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
25    of the Act and (ii) reasonably distributed throughout the

 

 

09800SB0016sam002- 30 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 31 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 32 -LRB098 04277 NHT 59066 a

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

 

 

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

 

 

09800SB0016sam002- 34 -LRB098 04277 NHT 59066 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800SB0016sam002- 39 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 40 -LRB098 04277 NHT 59066 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (E) the nature and term of the obligations to be
2    issued;
3        (F) the most recent equalized assessed valuation of the
4    redevelopment project area;
5        (G) an estimate as to the equalized assessed valuation
6    after redevelopment and the general land uses to apply in
7    the redevelopment project area;
8        (H) a commitment to fair employment practices and an
9    affirmative action plan;
10        (I) if it concerns an industrial park conservation
11    area, the plan shall also include a general description of
12    any proposed developer, user and tenant of any property, a
13    description of the type, structure and general character of
14    the facilities to be developed, a description of the type,
15    class and number of new employees to be employed in the
16    operation of the facilities to be developed; and
17        (J) if property is to be annexed to the municipality,
18    the plan shall include the terms of the annexation
19    agreement.
20    The provisions of items (B) and (C) of this subsection (n)
21shall not apply to a municipality that before March 14, 1994
22(the effective date of Public Act 88-537) had fixed, either by
23its corporate authorities or by a commission designated under
24subsection (k) of Section 11-74.4-4, a time and place for a
25public hearing as required by subsection (a) of Section
2611-74.4-5. No redevelopment plan shall be adopted unless a

 

 

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1municipality complies with all of the following requirements:
2        (1) The municipality finds that the redevelopment
3    project area on the whole has not been subject to growth
4    and development through investment by private enterprise
5    and would not reasonably be anticipated to be developed
6    without the adoption of the redevelopment plan.
7        (2) The municipality finds that the redevelopment plan
8    and project conform to the comprehensive plan for the
9    development of the municipality as a whole, or, for
10    municipalities with a population of 100,000 or more,
11    regardless of when the redevelopment plan and project was
12    adopted, the redevelopment plan and project either: (i)
13    conforms to the strategic economic development or
14    redevelopment plan issued by the designated planning
15    authority of the municipality, or (ii) includes land uses
16    that have been approved by the planning commission of the
17    municipality.
18        (3) The redevelopment plan establishes the estimated
19    dates of completion of the redevelopment project and
20    retirement of obligations issued to finance redevelopment
21    project costs. Those dates may not be later than the dates
22    set forth under Section 11-74.4-3.5.
23        A municipality may by municipal ordinance amend an
24    existing redevelopment plan to conform to this paragraph
25    (3) as amended by Public Act 91-478, which municipal
26    ordinance may be adopted without further hearing or notice

 

 

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

 

 

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

 

 

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

 

 

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

 

 

09800SB0016sam002- 59 -LRB098 04277 NHT 59066 a

1development project in furtherance of the objectives of a
2redevelopment plan. On and after November 1, 1999 (the
3effective date of Public Act 91-478), no redevelopment plan may
4be approved or amended that includes the development of vacant
5land (i) with a golf course and related clubhouse and other
6facilities or (ii) designated by federal, State, county, or
7municipal government as public land for outdoor recreational
8activities or for nature preserves and used for that purpose
9within 5 years prior to the adoption of the redevelopment plan.
10For the purpose of this subsection, "recreational activities"
11is limited to mean camping and hunting.
12    (p) "Redevelopment project area" means an area designated
13by the municipality, which is not less in the aggregate than 1
141/2 acres and in respect to which the municipality has made a
15finding that there exist conditions which cause the area to be
16classified as an industrial park conservation area or a
17blighted area or a conservation area, or a combination of both
18blighted areas and conservation areas.
19    (p-1) Notwithstanding any provision of this Act to the
20contrary, on and after August 25, 2009 (the effective date of
21Public Act 96-680), a redevelopment project area may include
22areas within a one-half mile radius of an existing or proposed
23Regional Transportation Authority Suburban Transit Access
24Route (STAR Line) station without a finding that the area is
25classified as an industrial park conservation area, a blighted
26area, a conservation area, or a combination thereof, but only

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            the value of any physical improvements made to the
2            schools by the municipality or developer; and
3                (iii) the amount reimbursed may not affect
4            amounts otherwise obligated by the terms of any
5            bonds, notes, or other funding instruments, or the
6            terms of any redevelopment agreement.
7        Any school district seeking payment under this
8        paragraph (7.5) shall, after July 1 and before
9        September 30 of each year, provide the municipality
10        with reasonable evidence to support its claim for
11        reimbursement before the municipality shall be
12        required to approve or make the payment to the school
13        district. If the school district fails to provide the
14        information during this period in any year, it shall
15        forfeit any claim to reimbursement for that year.
16        School districts may adopt a resolution waiving the
17        right to all or a portion of the reimbursement
18        otherwise required by this paragraph (7.5). By
19        acceptance of this reimbursement the school district
20        waives the right to directly or indirectly set aside,
21        modify, or contest in any manner the establishment of
22        the redevelopment project area or projects;
23        (7.7) For redevelopment project areas designated (or
24    redevelopment project areas amended to add or increase the
25    number of tax-increment-financing assisted housing units)
26    on or after January 1, 2005 (the effective date of Public

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1sanitary, mosquito abatement, forest preserve, public health,
2fire protection, river conservancy, tuberculosis sanitarium
3and any other municipal corporations or districts with the
4power to levy taxes.
5    (u) "Taxing districts' capital costs" means those costs of
6taxing districts for capital improvements that are found by the
7municipal corporate authorities to be necessary and directly
8result from the redevelopment project.
9    (v) As used in subsection (a) of Section 11-74.4-3 of this
10Act, "vacant land" means any parcel or combination of parcels
11of real property without industrial, commercial, and
12residential buildings which has not been used for commercial
13agricultural purposes within 5 years prior to the designation
14of the redevelopment project area, unless the parcel is
15included in an industrial park conservation area or the parcel
16has been subdivided; provided that if the parcel was part of a
17larger tract that has been divided into 3 or more smaller
18tracts that were accepted for recording during the period from
191950 to 1990, then the parcel shall be deemed to have been
20subdivided, and all proceedings and actions of the municipality
21taken in that connection with respect to any previously
22approved or designated redevelopment project area or amended
23redevelopment project area are hereby validated and hereby
24declared to be legally sufficient for all purposes of this Act.
25For purposes of this Section and only for land subject to the
26subdivision requirements of the Plat Act, land is subdivided

 

 

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1when the original plat of the proposed Redevelopment Project
2Area or relevant portion thereof has been properly certified,
3acknowledged, approved, and recorded or filed in accordance
4with the Plat Act and a preliminary plat, if any, for any
5subsequent phases of the proposed Redevelopment Project Area or
6relevant portion thereof has been properly approved and filed
7in accordance with the applicable ordinance of the
8municipality.
9    (w) "Annual Total Increment" means the sum of each
10municipality's annual Net Sales Tax Increment and each
11municipality's annual Net Utility Tax Increment. The ratio of
12the Annual Total Increment of each municipality to the Annual
13Total Increment for all municipalities, as most recently
14calculated by the Department, shall determine the proportional
15shares of the Illinois Tax Increment Fund to be distributed to
16each municipality.
17    (x) "LEED certified" means any certification level of
18construction elements by a qualified Leadership in Energy and
19Environmental Design Accredited Professional as determined by
20the U.S. Green Building Council.
21    (y) "Green Globes certified" means any certification level
22of construction elements by a qualified Green Globes
23Professional as determined by the Green Building Initiative.
24(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
2596-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
261-1-12.)
 

 

 

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

 

 

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1block, tract or parcel of real property in the redevelopment
2project area shall be allocated to and when collected shall be
3paid by the county collector to the respective affected taxing
4districts in the manner required by law in the absence of the
5adoption of tax increment allocation financing.
6    (b) Except from a tax levied by a township to retire bonds
7issued to satisfy court-ordered damages, that portion, if any,
8of such taxes which is attributable to the increase in the
9current equalized assessed valuation of each taxable lot,
10block, tract or parcel of real property in the redevelopment
11project area over and above the initial equalized assessed
12value of each property in the project area shall be allocated
13to and when collected shall be paid to the municipal treasurer
14who shall deposit said taxes into a special fund called the
15special tax allocation fund of the municipality for the purpose
16of paying redevelopment project costs and obligations incurred
17in the payment thereof. In any county with a population of
183,000,000 or more that has adopted a procedure for collecting
19taxes that provides for one or more of the installments of the
20taxes to be billed and collected on an estimated basis, the
21municipal treasurer shall be paid for deposit in the special
22tax allocation fund of the municipality, from the taxes
23collected from estimated bills issued for property in the
24redevelopment project area, the difference between the amount
25actually collected from each taxable lot, block, tract, or
26parcel of real property within the redevelopment project area

 

 

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1and an amount determined by multiplying the rate at which taxes
2were last extended against the taxable lot, block, track, or
3parcel of real property in the manner provided in subsection
4(c) of Section 11-74.4-9 by the initial equalized assessed
5value of the property divided by the number of installments in
6which real estate taxes are billed and collected within the
7county; provided that the payments on or before December 31,
81999 to a municipal treasurer shall be made only if each of the
9following conditions are met:
10        (1) The total equalized assessed value of the
11    redevelopment project area as last determined was not less
12    than 175% of the total initial equalized assessed value.
13        (2) Not more than 50% of the total equalized assessed
14    value of the redevelopment project area as last determined
15    is attributable to a piece of property assigned a single
16    real estate index number.
17        (3) The municipal clerk has certified to the county
18    clerk that the municipality has issued its obligations to
19    which there has been pledged the incremental property taxes
20    of the redevelopment project area or taxes levied and
21    collected on any or all property in the municipality or the
22    full faith and credit of the municipality to pay or secure
23    payment for all or a portion of the redevelopment project
24    costs. The certification shall be filed annually no later
25    than September 1 for the estimated taxes to be distributed
26    in the following year; however, for the year 1992 the

 

 

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

 

 

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

 

 

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

 

 

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1    the municipal Treasurer, who shall deposit said taxes into
2    a special fund called the special tax allocation fund of
3    the municipality for the purpose of paying redevelopment
4    project costs and obligations incurred in the payment
5    thereof.
6    The municipality may pledge in the ordinance the funds in
7and to be deposited in the special tax allocation fund for the
8payment of such costs and obligations. No part of the current
9equalized assessed valuation of each property in the
10redevelopment project area attributable to any increase above
11the total initial equalized assessed value, or the total
12initial equalized assessed value as adjusted, of such
13properties shall be used in calculating the general State
14school aid formula, provided for in Section 18-8 of the School
15Code, or the primary State aid formula, provided for in Section
1618-8.15 of the School Code, until such time as all
17redevelopment project costs have been paid as provided for in
18this Section.
19    Whenever a municipality issues bonds for the purpose of
20financing redevelopment project costs, such municipality may
21provide by ordinance for the appointment of a trustee, which
22may be any trust company within the State, and for the
23establishment of such funds or accounts to be maintained by
24such trustee as the municipality shall deem necessary to
25provide for the security and payment of the bonds. If such
26municipality provides for the appointment of a trustee, such

 

 

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

 

 

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1the most recent distribution by the county collector to the
2affected districts of real property taxes from real property in
3the redevelopment project area.
4    Upon the payment of all redevelopment project costs, the
5retirement of obligations, the distribution of any excess
6monies pursuant to this Section, and final closing of the books
7and records of the redevelopment project area, the municipality
8shall adopt an ordinance dissolving the special tax allocation
9fund for the redevelopment project area and terminating the
10designation of the redevelopment project area as a
11redevelopment project area. Title to real or personal property
12and public improvements acquired by or for the municipality as
13a result of the redevelopment project and plan shall vest in
14the municipality when acquired and shall continue to be held by
15the municipality after the redevelopment project area has been
16terminated. Municipalities shall notify affected taxing
17districts prior to November 1 if the redevelopment project area
18is to be terminated by December 31 of that same year. If a
19municipality extends estimated dates of completion of a
20redevelopment project and retirement of obligations to finance
21a redevelopment project, as allowed by this amendatory Act of
221993, that extension shall not extend the property tax
23increment allocation financing authorized by this Section.
24Thereafter the rates of the taxing districts shall be extended
25and taxes levied, collected and distributed in the manner
26applicable in the absence of the adoption of tax increment

 

 

09800SB0016sam002- 92 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 93 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 94 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 95 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 96 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 97 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 98 -LRB098 04277 NHT 59066 a

1be used in calculating the general General State aid formula
2School Aid Formula, provided for in Section 18-8 of the School
3Code, or the primary State aid formula, provided for in Section
418-8.15 of the School Code, until all redevelopment project
5costs have been paid as provided for in this Section.
6    Whenever a municipality issues bonds for the purpose of
7financing redevelopment project costs, that municipality may
8provide by ordinance for the appointment of a trustee, which
9may be any trust company within the State, and for the
10establishment of any funds or accounts to be maintained by that
11trustee, as the municipality deems necessary to provide for the
12security and payment of the bonds. If the municipality provides
13for the appointment of a trustee, the trustee shall be
14considered the assignee of any payments assigned by the
15municipality under that ordinance and this Section. Any amounts
16paid to the trustee as assignee shall be deposited into the
17funds or accounts established under the trust agreement, and
18shall be held by the trustee in trust for the benefit of the
19holders of the bonds. The holders of those bonds shall have a
20lien on and a security interest in those funds or accounts
21while the bonds remain outstanding and unpaid. Upon retirement
22of the bonds, the trustee shall pay over any excess amounts
23held to the municipality for deposit in the special tax
24allocation fund.
25    When the redevelopment projects costs, including without
26limitation all municipal obligations financing redevelopment

 

 

09800SB0016sam002- 99 -LRB098 04277 NHT 59066 a

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

 

 

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1terminated by December 31 of that same year.
2    Nothing in this Section shall be construed as relieving
3property in a redevelopment project area from being assessed as
4provided in the Property Tax Code or as relieving owners of
5that property from paying a uniform rate of taxes, as required
6by Section 4 of Article IX of the Illinois Constitution.
7(Source: P.A. 91-474, eff. 11-1-99.)
 
8    Section 940. The Economic Development Project Area Tax
9Increment Allocation Act of 1995 is amended by changing Section
1050 as follows:
 
11    (65 ILCS 110/50)
12    Sec. 50. Special tax allocation fund.
13    (a) If a county clerk has certified the "total initial
14equalized assessed value" of the taxable real property within
15an economic development project area in the manner provided in
16Section 45, each year after the date of the certification by
17the county clerk of the "total initial equalized assessed
18value", until economic development project costs and all
19municipal obligations financing economic development project
20costs have been paid, the ad valorem taxes, if any, arising
21from the levies upon the taxable real property in the economic
22development project area by taxing districts and tax rates
23determined in the manner provided in subsection (b) of Section
2445 shall be divided as follows:

 

 

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

 

 

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

 

 

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1adopt an ordinance dissolving the special tax allocation fund
2for the economic development project area and terminating the
3designation of the economic development project area as an
4economic development project area. Thereafter, the rates of the
5taxing districts shall be extended and taxes shall be levied,
6collected, and distributed in the manner applicable in the
7absence of the adoption of tax increment allocation financing.
8    (e) Nothing in this Section shall be construed as relieving
9property in the economic development project areas from being
10assessed as provided in the Property Tax Code or as relieving
11owners or lessees of that property from paying a uniform rate
12of taxes as required by Section 4 of Article IX of the Illinois
13Constitution.
14(Source: P.A. 98-463, eff. 8-16-13.)
 
15    Section 945. The School Code is amended by changing
16Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
171F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
182-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-19, 10-22.5a,
1910-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50,
2013B-50.10, 13B-50.15, 14-7.02, 14-7.02b, 14-7.03, 14-13.01,
2114C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
2218-8.10, 18-9, 18-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5,
2334-2.3, 34-8.4, 34-18, 34-18.30, and 34-43.1 and by adding
24Sections 14-7.02c and 18-8.15 as follows:
 

 

 

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

 

 

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

 

 

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

 

 

09800SB0016sam002- 107 -LRB098 04277 NHT 59066 a

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

 

 

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1warrants or other evidences of indebtedness shall be issued or
2sold by a school district or be legally binding upon or
3enforceable against a local board of education of a district
4certified to be in financial difficulty unless and until the
5financial plan required under this Section has been approved by
6the State Board of Education.
7    Any financial profile compiled and distributed by the State
8Board of Education in Fiscal Year 2009 or any fiscal year
9thereafter shall incorporate such adjustments as may be needed
10in the profile scores to reflect the financial effects of the
11inability or refusal of the State of Illinois to make timely
12disbursements of any general State aid, primary State aid, or
13mandated categorical aid payments due school districts or to
14fully reimburse school districts for mandated categorical
15programs pursuant to reimbursement formulas provided in this
16School Code.
17(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1897-429, eff. 8-16-11.)
 
19    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
20    Sec. 1B-5. When a petition for emergency financial
21assistance for a school district is allowed by the State Board
22under Section 1B-4, the State Superintendent shall within 10
23days thereafter appoint 3 members to serve at the State
24Superintendent's pleasure on a Financial Oversight Panel for
25the district. The State Superintendent shall designate one of

 

 

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

 

 

09800SB0016sam002- 110 -LRB098 04277 NHT 59066 a

1affirmative vote of 2 members shall be necessary for any
2decision or action to be taken by the Panel.
3    The Panel and the State Superintendent shall cooperate with
4each other in the exercise of their respective powers. The
5Panel shall report not later than September 1 annually to the
6State Board and the State Superintendent with respect to its
7activities and the condition of the school district for the
8previous fiscal year.
9    Any Financial Oversight Panel established under this
10Article shall remain in existence for not less than 3 years nor
11more than 10 years from the date the State Board grants the
12petition under Section 1B-4. If after 3 years the school
13district has repaid all of its obligations resulting from
14emergency State financial assistance provided under this
15Article and has improved its financial situation, the board of
16education may, not more frequently than once in any 12 month
17period, petition the State Board to dissolve the Financial
18Oversight Panel, terminate the oversight responsibility, and
19remove the district's certification under Section 1A-8 as a
20district in financial difficulty. In acting on such a petition
21the State Board shall give additional weight to the
22recommendations of the State Superintendent and the Financial
23Oversight Panel.
24(Source: P.A. 88-618, eff. 9-9-94.)
 
25    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)

 

 

09800SB0016sam002- 111 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 112 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 113 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 114 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 115 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 116 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 117 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 118 -LRB098 04277 NHT 59066 a

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

 

 

09800SB0016sam002- 119 -LRB098 04277 NHT 59066 a

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

 

 

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117-2 shall provide for a separate tax levy for emergency
2financial assistance repayment purposes. Such tax levy shall
3not be subject to referendum approval. The amount of the levy
4shall be equal to the amount necessary to meet the annual
5repayment obligations of the district as established by the
6Panel, or 20% of the amount levied for educational purposes for
7the prior year, whichever is less. However, no district shall
8be required to levy the tax if the district's operating tax
9rate as determined under Section 18-8, or 18-8.05, or 18-8.15
10exceeds 200% of the district's tax rate for educational
11purposes for the prior year.
12(Source: P.A. 97-429, eff. 8-16-11.)
 
13    (105 ILCS 5/1C-1)
14    Sec. 1C-1. Purpose. The purpose of this Article is to
15permit greater flexibility and efficiency in the distribution
16and use of certain State funds available to local education
17agencies for the improvement of the quality of educational
18services pursuant to locally established priorities.
19    Through fiscal year 2014, this This Article does not apply
20to school districts having a population in excess of 500,000
21inhabitants.
22(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
2389-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
24    (105 ILCS 5/1C-2)

 

 

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1    Sec. 1C-2. Block grants.
2    (a) For fiscal year 1999, and each fiscal year thereafter,
3the State Board of Education shall award to school districts
4block grants as described in subsection (c). The State Board of
5Education may adopt rules and regulations necessary to
6implement this Section. In accordance with Section 2-3.32, all
7state block grants are subject to an audit. Therefore, block
8grant receipts and block grant expenditures shall be recorded
9to the appropriate fund code.
10    (b) (Blank).
11    (c) An Early Childhood Education Block Grant shall be
12created by combining the following programs: Preschool
13Education, Parental Training and Prevention Initiative. These
14funds shall be distributed to school districts and other
15entities on a competitive basis, except that the State Board of
16Education shall award to a school district having a population
17exceeding 500,000 inhabitants 37% of the funds in each fiscal
18year. Not less than 11% of this grant shall be used to fund
19programs for children ages 0-3, which percentage shall increase
20to at least 20% by Fiscal Year 2015. However, if, in a given
21fiscal year, the amount appropriated for the Early Childhood
22Education Block Grant is insufficient to increase the
23percentage of the grant to fund programs for children ages 0-3
24without reducing the amount of the grant for existing providers
25of preschool education programs, then the percentage of the
26grant to fund programs for children ages 0-3 may be held steady

 

 

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1instead of increased.
2(Source: P.A. 95-793, eff. 1-1-09; 96-423, eff. 8-13-09.)
 
3    (105 ILCS 5/1D-1)
4    Sec. 1D-1. Block grant funding.
5    (a) For fiscal year 1996 through fiscal year 2014 and each
6fiscal year thereafter, the State Board of Education shall
7award to a school district having a population exceeding
8500,000 inhabitants a general education block grant and an
9educational services block grant, determined as provided in
10this Section, in lieu of distributing to the district separate
11State funding for the programs described in subsections (b) and
12(c). The provisions of this Section, however, do not apply to
13any federal funds that the district is entitled to receive. In
14accordance with Section 2-3.32, all block grants are subject to
15an audit. Therefore, block grant receipts and block grant
16expenditures shall be recorded to the appropriate fund code for
17the designated block grant.
18    (b) The general education block grant shall include the
19following programs: REI Initiative, Summer Bridges, Preschool
20At Risk, K-6 Comprehensive Arts, School Improvement Support,
21Urban Education, Scientific Literacy, Substance Abuse
22Prevention, Second Language Planning, Staff Development,
23Outcomes and Assessment, K-6 Reading Improvement, 7-12
24Continued Reading Improvement, Truants' Optional Education,
25Hispanic Programs, Agriculture Education, Parental Education,

 

 

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1Prevention Initiative, Report Cards, and Criminal Background
2Investigations. Notwithstanding any other provision of law,
3all amounts paid under the general education block grant from
4State appropriations to a school district in a city having a
5population exceeding 500,000 inhabitants shall be appropriated
6and expended by the board of that district for any of the
7programs included in the block grant or any of the board's
8lawful purposes.
9    (c) The educational services block grant shall include the
10following programs: Regular and Vocational Transportation,
11State Lunch and Free Breakfast Program, Special Education
12(Personnel, Transportation, Orphanage, Private Tuition),
13funding for children requiring special education services,
14Summer School, Educational Service Centers, and
15Administrator's Academy. This subsection (c) does not relieve
16the district of its obligation to provide the services required
17under a program that is included within the educational
18services block grant. It is the intention of the General
19Assembly in enacting the provisions of this subsection (c) to
20relieve the district of the administrative burdens that impede
21efficiency and accompany single-program funding. The General
22Assembly encourages the board to pursue mandate waivers
23pursuant to Section 2-3.25g.
24    The funding program included in the educational services
25block grant for funding for children requiring special
26education services in each fiscal year shall be treated in that

 

 

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1fiscal year as a payment to the school district in respect of
2services provided or costs incurred in the prior fiscal year,
3calculated in each case as provided in this Section. Nothing in
4this Section shall change the nature of payments for any
5program that, apart from this Section, would be or, prior to
6adoption or amendment of this Section, was on the basis of a
7payment in a fiscal year in respect of services provided or
8costs incurred in the prior fiscal year, calculated in each
9case as provided in this Section.
10    (d) For fiscal year 1996 through fiscal year 2014 and each
11fiscal year thereafter, the amount of the district's block
12grants shall be determined as follows: (i) with respect to each
13program that is included within each block grant, the district
14shall receive an amount equal to the same percentage of the
15current fiscal year appropriation made for that program as the
16percentage of the appropriation received by the district from
17the 1995 fiscal year appropriation made for that program, and
18(ii) the total amount that is due the district under the block
19grant shall be the aggregate of the amounts that the district
20is entitled to receive for the fiscal year with respect to each
21program that is included within the block grant that the State
22Board of Education shall award the district under this Section
23for that fiscal year. In the case of the Summer Bridges
24program, the amount of the district's block grant shall be
25equal to 44% of the amount of the current fiscal year
26appropriation made for that program.

 

 

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1    (e) The district is not required to file any application or
2other claim in order to receive the block grants to which it is
3entitled under this Section. The State Board of Education shall
4make payments to the district of amounts due under the
5district's block grants on a schedule determined by the State
6Board of Education.
7    (f) A school district to which this Section applies shall
8report to the State Board of Education on its use of the block
9grants in such form and detail as the State Board of Education
10may specify. In addition, the report must include the following
11description for the district, which must also be reported to
12the General Assembly: block grant allocation and expenditures
13by program; population and service levels by program; and
14administrative expenditures by program. The State Board of
15Education shall ensure that the reporting requirements for the
16district are the same as for all other school districts in this
17State.
18    (g) Through fiscal year 2014, this This paragraph provides
19for the treatment of block grants under Article 1C for purposes
20of calculating the amount of block grants for a district under
21this Section. Those block grants under Article 1C are, for this
22purpose, treated as included in the amount of appropriation for
23the various programs set forth in paragraph (b) above. The
24appropriation in each current fiscal year for each block grant
25under Article 1C shall be treated for these purposes as
26appropriations for the individual program included in that

 

 

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

 

 

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1grant or general State aid to be classified under this
2subsection (h) and must specify the funding program to which
3the funds are to be treated as received in connection
4therewith. This resolution is controlling as to the
5classification of funds referenced therein. A certified copy of
6the resolution must be sent to the State Superintendent of
7Education. The resolution shall still take effect even though a
8copy of the resolution has not been sent to the State
9Superintendent of Education in a timely manner. No
10classification under this subsection (h) by a district shall
11affect the total amount or timing of money the district is
12entitled to receive under this Code. No classification under
13this subsection (h) by a district shall in any way relieve the
14district from or affect any requirements that otherwise would
15apply with respect to the block grant as provided in this
16Section, including any accounting of funds by source, reporting
17expenditures by original source and purpose, reporting
18requirements, or requirements of provision of services.
19(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
2097-813, eff. 7-13-12.)
 
21    (105 ILCS 5/1E-20)
22    (This Section scheduled to be repealed in accordance with
23105 ILCS 5/1E-165)
24    Sec. 1E-20. Members of Authority; meetings.
25    (a) When a petition for a School Finance Authority is

 

 

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1allowed by the State Board under Section 1E-15 of this Code,
2the State Superintendent shall within 10 days thereafter
3appoint 5 members to serve on a School Finance Authority for
4the district. Of the initial members, 2 shall be appointed to
5serve a term of 2 years and 3 shall be appointed to serve a term
6of 3 years. Thereafter, each member shall serve for a term of 3
7years and until his or her successor has been appointed. The
8State Superintendent shall designate one of the members of the
9Authority to serve as its Chairperson. In the event of vacancy
10or resignation, the State Superintendent shall, within 10 days
11after receiving notice, appoint a successor to serve out that
12member's term. The State Superintendent may remove a member for
13incompetence, malfeasance, neglect of duty, or other just
14cause.
15    Members of the Authority shall be selected primarily on the
16basis of their experience and education in financial
17management, with consideration given to persons knowledgeable
18in education finance. Two members of the Authority shall be
19residents of the school district that the Authority serves. A
20member of the Authority may not be a member of the district's
21school board or an employee of the district nor may a member
22have a direct financial interest in the district.
23    Authority members shall serve without compensation, but
24may be reimbursed by the State Board for travel and other
25necessary expenses incurred in the performance of their
26official duties. Unless paid from bonds issued under Section

 

 

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11E-65 of this Code, the amount reimbursed members for their
2expenses shall be charged to the school district as part of any
3emergency financial assistance and incorporated as a part of
4the terms and conditions for repayment of the assistance or
5shall be deducted from the district's general State aid or
6primary State aid as provided in Section 1B-8 of this Code.
7    The Authority may elect such officers as it deems
8appropriate.
9    (b) The first meeting of the Authority shall be held at the
10call of the Chairperson. The Authority shall prescribe the
11times and places for its meetings and the manner in which
12regular and special meetings may be called and shall comply
13with the Open Meetings Act.
14    Three members of the Authority shall constitute a quorum.
15When a vote is taken upon any measure before the Authority, a
16quorum being present, a majority of the votes of the members
17voting on the measure shall determine the outcome.
18(Source: P.A. 92-547, eff. 6-13-02.)
 
19    (105 ILCS 5/1F-20)
20(This Section scheduled to be repealed in accordance with 105
21ILCS 5/1F-165)
22    Sec. 1F-20. Members of Authority; meetings.
23    (a) Upon establishment of a School Finance Authority under
24Section 1F-15 of this Code, the State Superintendent shall
25within 15 days thereafter appoint 5 members to serve on a

 

 

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1School Finance Authority for the district. Of the initial
2members, 2 shall be appointed to serve a term of 2 years and 3
3shall be appointed to serve a term of 3 years. Thereafter, each
4member shall serve for a term of 3 years and until his or her
5successor has been appointed. The State Superintendent shall
6designate one of the members of the Authority to serve as its
7Chairperson. In the event of vacancy or resignation, the State
8Superintendent shall, within 10 days after receiving notice,
9appoint a successor to serve out that member's term. The State
10Superintendent may remove a member for incompetence,
11malfeasance, neglect of duty, or other just cause.
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 be paid a stipend approved by the
21State Superintendent of not more than $100 per meeting and may
22be reimbursed by the State Board for travel and other necessary
23expenses incurred in the performance of their official duties.
24Unless paid from bonds issued under Section 1F-65 of this Code,
25the amount reimbursed members for their expenses shall be
26charged to the school district as part of any emergency

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1management, with consideration given to persons knowledgeable
2in education finance. Two members of the Panel shall be
3residents of the school district that the Panel serves. A
4member of the Panel may not be a member of the district's
5school board or an employee of the district nor may a member
6have a direct financial interest in the district.
7    (c) Panel members may be reimbursed by the State Board for
8travel and other necessary expenses incurred in the performance
9of their official duties. The amount reimbursed members for
10their expenses shall be charged to the school district as part
11of any emergency financial assistance and incorporated as a
12part of the terms and conditions for repayment of the
13assistance or shall be deducted from the district's general
14State aid or primary State aid as provided in Section 1H-65 of
15this Code.
16    (d) With the exception of the chairperson, who shall be
17designated as provided in subsection (a) of this Section, the
18Panel may elect such officers as it deems appropriate.
19    (e) The first meeting of the Panel shall be held at the
20call of the Chairperson. The Panel shall prescribe the times
21and places for its meetings and the manner in which regular and
22special meetings may be called and shall comply with the Open
23Meetings Act. The Panel shall also comply with the Freedom of
24Information Act.
25    (f) Three members of the Panel shall constitute a quorum. A
26majority of members present is required to pass a measure.

 

 

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1(Source: P.A. 97-429, eff. 8-16-11.)
 
2    (105 ILCS 5/1H-70)
3    Sec. 1H-70. Tax anticipation warrants, tax anticipation
4notes, revenue anticipation certificates or notes, general
5State aid or primary State aid anticipation certificates, and
6lines of credit. With the approval of the State Superintendent
7and provided that the district is unable to secure short-term
8financing after 3 attempts, a Panel shall have the same power
9as a district to do the following:
10        (1) issue tax anticipation warrants under the
11    provisions of Section 17-16 of this Code against taxes
12    levied by either the school board or the Panel pursuant to
13    Section 1H-25 of this Code;
14        (2) issue tax anticipation notes under the provisions
15    of the Tax Anticipation Note Act against taxes levied by
16    either the school board or the Panel pursuant to Section
17    1H-25 of this Code;
18        (3) issue revenue anticipation certificates or notes
19    under the provisions of the Revenue Anticipation Act;
20        (4) issue general State aid or primary State aid
21    anticipation certificates under the provisions of Section
22    18-18 of this Code; and
23        (5) establish and utilize lines of credit under the
24    provisions of Section 17-17 of this Code.
25    Tax anticipation warrants, tax anticipation notes, revenue

 

 

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

 

 

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1    non-instructional pupil services, facilities, and business
2    services; and
3        (4) such other requirements as the State Board of
4    Education deems necessary to provide for a uniform and
5    transparent system of accounting at the school level.
6(Source: P.A. 81-1508.)
 
7    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
8    Sec. 2-3.33. Recomputation of claims. To recompute within
93 years from the final date for filing of a claim any claim for
10reimbursement to any school district if the claim has been
11found to be incorrect and to adjust subsequent claims
12accordingly, and to recompute and adjust any such claims within
136 years from the final date for filing when there has been an
14adverse court or administrative agency decision on the merits
15affecting the tax revenues of the school district. However, no
16such adjustment shall be made regarding equalized assessed
17valuation unless the district's equalized assessed valuation
18is changed by greater than $250,000 or 2%. Any adjustments for
19claims recomputed for the 2013-2014 school year and prior
20school years shall be applied to the apportionment of primary
21State financial aid in Section 18-8.15 of this Code beginning
22in the 2014-2015 school year and thereafter.
23    Except in the case of an adverse court or administrative
24agency decision, no recomputation of a State aid claim shall be
25made pursuant to this Section as a result of a reduction in the

 

 

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1assessed valuation of a school district from the assessed
2valuation of the district reported to the State Board of
3Education by the Department of Revenue under Section 18-8.05 or
418-8.15 of this Code unless the requirements of Section 16-15
5of the Property Tax Code and Section 2-3.84 of this Code are
6complied with in all respects.
7    This paragraph applies to all requests for recomputation of
8a general State aid or primary State aid claim received after
9June 30, 2003. In recomputing a general State aid or primary
10State aid claim that was originally calculated using an
11extension limitation equalized assessed valuation under
12paragraph (3) of subsection (G) of Section 18-8.05 of this Code
13or paragraph (3) of subsection (h) of Section 18-8.15 of this
14Code, a qualifying reduction in equalized assessed valuation
15shall be deducted from the extension limitation equalized
16assessed valuation that was used in calculating the original
17claim.
18    From the total amount of general State aid or primary State
19aid to be provided to districts, adjustments as a result of
20recomputation under this Section together with adjustments
21under Section 2-3.84 must not exceed $25 million, in the
22aggregate for all districts under both Sections combined, of
23the general State aid or primary State aid appropriation in any
24fiscal year; if necessary, amounts shall be prorated among
25districts. If it is necessary to prorate claims under this
26paragraph, then that portion of each prorated claim that is

 

 

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1approved but not paid in the current fiscal year may be
2resubmitted as a valid claim in the following fiscal year.
3(Source: P.A. 93-845, eff. 7-30-04.)
 
4    (105 ILCS 5/2-3.51.5)
5    Sec. 2-3.51.5. School Safety and Educational Improvement
6Block Grant Program. To improve the level of education and
7safety of students from kindergarten through grade 12 in school
8districts and State-recognized, non-public schools. The State
9Board of Education is authorized to fund a School Safety and
10Educational Improvement Block Grant Program.
11    (1) For school districts, the program shall provide funding
12for school safety, textbooks and software, electronic
13textbooks and the technological equipment necessary to gain
14access to and use electronic textbooks, teacher training and
15curriculum development, school improvements, remediation
16programs under subsection (a) of Section 2-3.64, school report
17cards under Section 10-17a, and criminal history records checks
18under Sections 10-21.9 and 34-18.5. For State-recognized,
19non-public schools, the program shall provide funding for
20secular textbooks and software, criminal history records
21checks, and health and safety mandates to the extent that the
22funds are expended for purely secular purposes. A school
23district or laboratory school as defined in Section 18-8, or
2418-8.05, or 18-8.15 is not required to file an application in
25order to receive the categorical funding to which it is

 

 

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1entitled under this Section. Funds for the School Safety and
2Educational Improvement Block Grant Program shall be
3distributed to school districts and laboratory schools based on
4the prior year's best 3 months average daily attendance. Funds
5for the School Safety and Educational Improvement Block Grant
6Program shall be distributed to State-recognized, non-public
7schools based on the average daily attendance figure for the
8previous school year provided to the State Board of Education.
9The State Board of Education shall develop an application that
10requires State-recognized, non-public schools to submit
11average daily attendance figures. A State-recognized,
12non-public school must submit the application and average daily
13attendance figure prior to receiving funds under this Section.
14The State Board of Education shall promulgate rules and
15regulations necessary for the implementation of this program.
16    (2) Distribution of moneys to school districts and
17State-recognized, non-public schools shall be made in 2
18semi-annual installments, one payment on or before October 30,
19and one payment prior to April 30, of each fiscal year.
20    (3) Grants under the School Safety and Educational
21Improvement Block Grant Program shall be awarded provided there
22is an appropriation for the program, and funding levels for
23each district shall be prorated according to the amount of the
24appropriation.
25    (4) The provisions of this Section are in the public
26interest, are for the public benefit, and serve secular public

 

 

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1purposes.
2(Source: P.A. 95-707, eff. 1-11-08; 96-1403, eff. 7-29-10.)
 
3    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
4    Sec. 2-3.66. Truants' alternative and optional education
5programs. To establish projects to offer modified
6instructional programs or other services designed to prevent
7students from dropping out of school, including programs
8pursuant to Section 2-3.41, and to serve as a part time or full
9time option in lieu of regular school attendance and to award
10grants to local school districts, educational service regions
11or community college districts from appropriated funds to
12assist districts in establishing such projects. The education
13agency may operate its own program or enter into a contract
14with another not-for-profit entity to implement the program.
15The projects shall allow dropouts, up to and including age 21,
16potential dropouts, including truants, uninvolved, unmotivated
17and disaffected students, as defined by State Board of
18Education rules and regulations, to enroll, as an alternative
19to regular school attendance, in an optional education program
20which may be established by school board policy and is in
21conformance with rules adopted by the State Board of Education.
22Truants' Alternative and Optional Education programs funded
23pursuant to this Section shall be planned by a student, the
24student's parents or legal guardians, unless the student is 18
25years or older, and school officials and shall culminate in an

 

 

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1individualized optional education plan. Such plan shall focus
2on academic or vocational skills, or both, and may include, but
3not be limited to, evening school, summer school, community
4college courses, adult education, preparation courses for the
5high school level test of General Educational Development,
6vocational training, work experience, programs to enhance self
7concept and parenting courses. School districts which are
8awarded grants pursuant to this Section shall be authorized to
9provide day care services to children of students who are
10eligible and desire to enroll in programs established and
11funded under this Section, but only if and to the extent that
12such day care is necessary to enable those eligible students to
13attend and participate in the programs and courses which are
14conducted pursuant to this Section. School districts and
15regional offices of education may claim general State aid under
16Section 18-8.05 or primary State aid under Section 18-8.15 for
17students enrolled in truants' alternative and optional
18education programs, provided that such students are receiving
19services that are supplemental to a program leading to a high
20school diploma and are otherwise eligible to be claimed for
21general State aid under Section 18-8.05 or primary State aid
22under Section 18-8.15, as applicable.
23(Source: P.A. 96-734, eff. 8-25-09.)
 
24    (105 ILCS 5/2-3.66b)
25    Sec. 2-3.66b. IHOPE Program.

 

 

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1    (a) There is established the Illinois Hope and Opportunity
2Pathways through Education (IHOPE) Program. The State Board of
3Education shall implement and administer the IHOPE Program. The
4goal of the IHOPE Program is to develop a comprehensive system
5in this State to re-enroll significant numbers of high school
6dropouts in programs that will enable them to earn their high
7school diploma.
8    (b) The IHOPE Program shall award grants, subject to
9appropriation for this purpose, to educational service regions
10and a school district organized under Article 34 of this Code
11from appropriated funds to assist in establishing
12instructional programs and other services designed to
13re-enroll high school dropouts. From any funds appropriated for
14the IHOPE Program, the State Board of Education may use up to
155% for administrative costs, including the performance of a
16program evaluation and the hiring of staff to implement and
17administer the program.
18    The IHOPE Program shall provide incentive grant funds for
19regional offices of education and a school district organized
20under Article 34 of this Code to develop partnerships with
21school districts, public community colleges, and community
22groups to build comprehensive plans to re-enroll high school
23dropouts in their regions or districts.
24    Programs funded through the IHOPE Program shall allow high
25school dropouts, up to and including age 21 notwithstanding
26Section 26-2 of this Code, to re-enroll in an educational

 

 

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1program in conformance with rules adopted by the State Board of
2Education. Programs may include without limitation
3comprehensive year-round programming, evening school, summer
4school, community college courses, adult education, vocational
5training, work experience, programs to enhance self-concept,
6and parenting courses. Any student in the IHOPE Program who
7wishes to earn a high school diploma must meet the
8prerequisites to receiving a high school diploma specified in
9Section 27-22 of this Code and any other graduation
10requirements of the student's district of residence. Any
11student who successfully completes the requirements for his or
12her graduation shall receive a diploma identifying the student
13as graduating from his or her district of residence.
14    (c) In order to be eligible for funding under the IHOPE
15Program, an interested regional office of education or a school
16district organized under Article 34 of this Code shall develop
17an IHOPE Plan to be approved by the State Board of Education.
18The State Board of Education shall develop rules for the IHOPE
19Program that shall set forth the requirements for the
20development of the IHOPE Plan. Each Plan shall involve school
21districts, public community colleges, and key community
22programs that work with high school dropouts located in an
23educational service region or the City of Chicago before the
24Plan is sent to the State Board for approval. No funds may be
25distributed to a regional office of education or a school
26district organized under Article 34 of this Code until the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1State Board of Education shall incorporate and deduct the total
2aggregate adjustments to assessments made by the State Property
3Tax Appeal Board or Cook County Board of Appeals, as reported
4pursuant to Section 16-15 of the Property Tax Code or Section
5129.1 of the Revenue Act of 1939 by the Department of Revenue,
6from the equalized assessed valuation that is otherwise to be
7utilized in the initial calculation.
8    From the total amount of general State aid or primary State
9aid to be provided to districts, adjustments under this Section
10together with adjustments as a result of recomputation under
11Section 2-3.33 must not exceed $25 million, in the aggregate
12for all districts under both Sections combined, of the general
13State aid or primary State aid appropriation in any fiscal
14year; if necessary, amounts shall be prorated among districts.
15If it is necessary to prorate claims under this paragraph, then
16that portion of each prorated claim that is approved but not
17paid in the current fiscal year may be resubmitted as a valid
18claim in the following fiscal year.
19(Source: P.A. 93-845, eff. 7-30-04.)
 
20    (105 ILCS 5/2-3.109a)
21    Sec. 2-3.109a. Laboratory schools grant eligibility. A
22laboratory school as defined in Section 18-8 or 18-8.15 may
23apply for and be eligible to receive, subject to the same
24restrictions applicable to school districts, any grant
25administered by the State Board of Education that is available

 

 

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1for school districts.
2(Source: P.A. 90-566, eff. 1-2-98.)
 
3    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
4    Sec. 3-14.21. Inspection of schools.
5    (a) The regional superintendent shall inspect and survey
6all public schools under his or her supervision and notify the
7board of education, or the trustees of schools in a district
8with trustees, in writing before July 30, whether or not the
9several schools in their district have been kept as required by
10law, using forms provided by the State Board of Education which
11are based on the Health/Life Safety Code for Public Schools
12adopted under Section 2-3.12. The regional superintendent
13shall report his or her findings to the State Board of
14Education on forms provided by the State Board of Education.
15    (b) If the regional superintendent determines that a school
16board has failed in a timely manner to correct urgent items
17identified in a previous life-safety report completed under
18Section 2-3.12 or as otherwise previously ordered by the
19regional superintendent, the regional superintendent shall
20order the school board to adopt and submit to the regional
21superintendent a plan for the immediate correction of the
22building violations. This plan shall be adopted following a
23public hearing that is conducted by the school board on the
24violations and the plan and that is preceded by at least 7
25days' prior notice of the hearing published in a newspaper of

 

 

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

 

 

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

 

 

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1immediately following the effective date of the boundary change
2for both the district gaining territory and the district losing
3territory. Copies of any intergovernmental agreements between
4the district gaining territory and the district losing
5territory detailing any transfer of fund balances and staff
6must also be submitted. In all instances of changes in
7boundaries, the district losing territory shall not count the
8average daily attendance of pupils living in the territory
9during the year preceding the effective date of the boundary
10change in its claim for reimbursement under Section 18-8 or
1118-8.15 for the school year following the effective date of the
12change in boundaries and the district receiving the territory
13shall count the average daily attendance of pupils living in
14the territory during the year preceding the effective date of
15the boundary change in its claim for reimbursement under
16Section 18-8 or 18-8.15 for the school year following the
17effective date of the change in boundaries. The changes to this
18Section made by this amendatory Act of the 95th General
19Assembly are intended to be retroactive and applicable to any
20annexation taking effect on or after July 1, 2004.
21(Source: P.A. 95-707, eff. 1-11-08.)
 
22    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
23    Sec. 10-19. Length of school term - experimental programs.
24Each school board shall annually prepare a calendar for the
25school term, specifying the opening and closing dates and

 

 

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1providing a minimum term of at least 185 days to insure 176
2days of actual pupil attendance, computable under Section
318-8.05 or 18-8.15, except that for the 1980-1981 school year
4only 175 days of actual pupil attendance shall be required
5because of the closing of schools pursuant to Section 24-2 on
6January 29, 1981 upon the appointment by the President of that
7day as a day of thanksgiving for the freedom of the Americans
8who had been held hostage in Iran. Any days allowed by law for
9teachers' institutes institute but not used as such or used as
10parental institutes as provided in Section 10-22.18d shall
11increase the minimum term by the school days not so used.
12Except as provided in Section 10-19.1, the board may not extend
13the school term beyond such closing date unless that extension
14of term is necessary to provide the minimum number of
15computable days. In case of such necessary extension school
16employees shall be paid for such additional time on the basis
17of their regular contracts. A school board may specify a
18closing date earlier than that set on the annual calendar when
19the schools of the district have provided the minimum number of
20computable days under this Section. Nothing in this Section
21prevents the board from employing superintendents of schools,
22principals and other nonteaching personnel for a period of 12
23months, or in the case of superintendents for a period in
24accordance with Section 10-23.8, or prevents the board from
25employing other personnel before or after the regular school
26term with payment of salary proportionate to that received for

 

 

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1comparable work during the school term.
2    A school board may make such changes in its calendar for
3the school term as may be required by any changes in the legal
4school holidays prescribed in Section 24-2. A school board may
5make changes in its calendar for the school term as may be
6necessary to reflect the utilization of teachers' institute
7days as parental institute days as provided in Section
810-22.18d.
9    The calendar for the school term and any changes must be
10submitted to and approved by the regional superintendent of
11schools before the calendar or changes may take effect.
12    With the prior approval of the State Board of Education and
13subject to review by the State Board of Education every 3
14years, any school board may, by resolution of its board and in
15agreement with affected exclusive collective bargaining
16agents, establish experimental educational programs, including
17but not limited to programs for self-directed learning or
18outside of formal class periods, which programs when so
19approved shall be considered to comply with the requirements of
20this Section as respects numbers of days of actual pupil
21attendance and with the other requirements of this Act as
22respects courses of instruction.
23(Source: P.A. 93-1036, eff. 9-14-04; revised 11-12-13.)
 
24    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
25    Sec. 10-22.5a. Attendance by dependents of United States

 

 

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

 

 

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1the requirements of this subsection (a-5), and must not be
2charged tuition. Any United States military personnel
3attempting to enroll a dependent under this subsection (a-5)
4shall provide proof that the dependent will be living within
5the district within 60 days after the time of initial
6enrollment. Proof of residency may include, but is not limited
7to, postmarked mail addressed to the military personnel and
8sent to an address located within the district, a lease
9agreement for occupancy of a residence located within the
10district, or proof of ownership of a residence located within
11the district.
12    (b) Nonresident pupils and foreign exchange students
13attending school on a tuition free basis under such agreements
14and nonresident dependents of United States military personnel
15attending school on a tuition free basis may be counted for the
16purposes of determining the apportionment of State aid provided
17under Section 18-8.05 or 18-8.15 of this Code, provided that
18any cultural exchange organization or eleemosynary
19institutions wishing to participate in an agreement authorized
20under this Section must be approved in writing by the State
21Board of Education. The State Board of Education may establish
22reasonable rules to determine the eligibility of cultural
23exchange organizations or eleemosynary institutions wishing to
24participate in agreements authorized under this Section. No
25organization or institution participating in agreements
26authorized under this Section may exclude any individual for

 

 

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1participation in its program on account of the person's race,
2color, sex, religion or nationality.
3(Source: P.A. 93-740, eff. 7-15-04.)
 
4    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
5    Sec. 10-22.20. Classes for adults and youths whose
6schooling has been interrupted; conditions for State
7reimbursement; use of child care facilities.
8    (a) To establish special classes for the instruction (1) of
9persons of age 21 years or over, and (2) of persons less than
10age 21 and not otherwise in attendance in public school, for
11the purpose of providing adults in the community, and youths
12whose schooling has been interrupted, with such additional
13basic education, vocational skill training, and other
14instruction as may be necessary to increase their
15qualifications for employment or other means of self-support
16and their ability to meet their responsibilities as citizens
17including courses of instruction regularly accepted for
18graduation from elementary or high schools and for
19Americanization and General Educational Development Review
20classes.
21    The board shall pay the necessary expenses of such classes
22out of school funds of the district, including costs of student
23transportation and such facilities or provision for child-care
24as may be necessary in the judgment of the board to permit
25maximum utilization of the courses by students with children,

 

 

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

 

 

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

 

 

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1the students directly related to instruction and then from the
2funds remaining an amount equal to the product of the total
3credit hours or units of instruction approved by the Illinois
4Community College Board, multiplied by the following:
5        (1) For adult basic education, the maximum
6    reimbursement per credit hour or per unit of instruction
7    shall be equal to (i) through fiscal year 2014, the general
8    state aid per pupil foundation level established in
9    subsection (B) of Section 18-8.05, divided by 60, or (ii)
10    in fiscal year 2015 and thereafter, the foundation level
11    established pursuant to subsection (b) of Section 18-8.15
12    of this Code, divided by 60;
13        (2) The maximum reimbursement per credit hour or per
14    unit of instruction in subparagraph (1) above shall be
15    weighted for students enrolled in classes defined as
16    vocational skills and approved by the Illinois Community
17    College Board by 1.25;
18        (3) The maximum reimbursement per credit hour or per
19    unit of instruction in subparagraph (1) above shall be
20    multiplied by .90 for students enrolled in classes defined
21    as adult secondary education programs and approved by the
22    Illinois Community College Board;
23        (4) (Blank); and
24        (5) Funding for program years after 1999-2000 shall be
25    determined by the Illinois Community College Board.
26    (d) Upon its annual approval, the Illinois Community

 

 

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

 

 

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

 

 

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

 

 

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1facility shall be transferred to the kindergarten established
2under that Section for such portion of the day as may be
3required for the kindergarten program, and only the prorated
4costs of care and training provided in the Center for the
5remaining period shall be charged to the Illinois Department of
6Human Services or other persons or agencies paying for such
7care.
8    (i) The provisions of this Section shall also apply to
9school districts having a population exceeding 500,000.
10    (j) In addition to claiming reimbursement under this
11Section, a school district may claim general State aid under
12Section 18-8.05 or primary State aid under Section 18-8.15 for
13any student under age 21 who is enrolled in courses accepted
14for graduation from elementary or high school and who otherwise
15meets the requirements of Section 18-8.05 or 18-8.15, as
16applicable.
17(Source: P.A. 95-331, eff. 8-21-07.)
 
18    (105 ILCS 5/10-29)
19    Sec. 10-29. Remote educational programs.
20    (a) For purposes of this Section, "remote educational
21program" means an educational program delivered to students in
22the home or other location outside of a school building that
23meets all of the following criteria:
24        (1) A student may participate in the program only after
25    the school district, pursuant to adopted school board

 

 

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

 

 

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

 

 

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1        content delivery through class activities, assessing
2        learning, reporting outcomes to administrators and
3        parents and guardians, and evaluating the effects of
4        instruction.
5        (4) During the period of time from and including the
6    opening date to the closing date of the regular school term
7    of the school district established pursuant to Section
8    10-19 of this Code, participation in a remote educational
9    program may be claimed for general State aid purposes under
10    Section 18-8.05 of this Code or primary State aid purposes
11    under Section 18-8.15 of this Code on any calendar day,
12    notwithstanding whether the day is a day of pupil
13    attendance or institute day on the school district's
14    calendar or any other provision of law restricting
15    instruction on that day. If the district holds year-round
16    classes in some buildings, the district shall classify each
17    student's participation in a remote educational program as
18    either on a year-round or a non-year-round schedule for
19    purposes of claiming general State aid or primary State
20    aid. Outside of the regular school term of the district,
21    the remote educational program may be offered as part of
22    any summer school program authorized by this Code.
23        (5) Each student participating in a remote educational
24    program must have a written remote educational plan that
25    has been approved by the school district and a person
26    authorized to enroll the student under Section 10-20.12b of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1collective bargaining agreements.
2    (e) The use of a home or other location outside of a school
3building for a remote educational program shall not cause the
4home or other location to be deemed a public school facility.
5    (f) A remote educational program may be used, but is not
6required, for instruction delivered to a student in the home or
7other location outside of a school building that is not claimed
8for general State aid purposes under Section 18-8.05 of this
9Code or primary State aid purposes under Section 18-8.15 of
10this Code.
11    (g) School districts that, pursuant to this Section, adopt
12a policy for a remote educational program must submit to the
13State Board of Education a copy of the policy and any
14amendments thereto, as well as data on student participation in
15a format specified by the State Board of Education. The State
16Board of Education may perform or contract with an outside
17entity to perform an evaluation of remote educational programs
18in this State.
19    (h) The State Board of Education may adopt any rules
20necessary to ensure compliance by remote educational programs
21with the requirements of this Section and other applicable
22legal requirements.
23(Source: P.A. 96-684, eff. 8-25-09; 97-339, eff. 8-12-11.)
 
24    (105 ILCS 5/11E-135)
25    Sec. 11E-135. Incentives. For districts reorganizing under

 

 

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

 

 

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1for the annexing district as constituted after the annexation
2and for the annexing and each annexed district as constituted
3prior to the annexation; and if the computation on the basis of
4the annexing and annexed districts as constituted prior to the
5annexation is greater, then a supplementary payment equal to
6the difference shall be made for the first 4 years of existence
7of the annexing school district as constituted upon the
8annexation.
9    (3) For 2 or more school districts that annex all of the
10territory of one or more entire other school districts, as
11defined in Article 7 of this Code, for the first year during
12which the change of boundaries attributable to the annexation
13becomes effective for all purposes, as determined under Section
147-9 of this Code, the general State aid and supplemental
15general State aid calculated under Section 18-8.05 of this Code
16or the primary State aid and supplemental grants calculated
17under Section 18-8.15 of this Code, as applicable, shall be
18computed for each annexing district as constituted after the
19annexation and for each annexing and annexed district as
20constituted prior to the annexation; and if the aggregate of
21the general State aid and supplemental general State aid or
22primary State aid and supplemental grants, as applicable, as so
23computed for the annexing districts as constituted after the
24annexation is less than the aggregate of the general State aid
25and supplemental general State aid or primary State aid and
26supplemental grants, as applicable, as so computed for the

 

 

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1annexing and annexed districts, as constituted prior to the
2annexation, then a supplementary payment equal to the
3difference shall be made and allocated between or among the
4annexing districts, as constituted upon the annexation, for the
5first 4 years of their existence. The total difference payment
6shall be allocated between or among the annexing districts in
7the same ratio as the pupil enrollment from that portion of the
8annexed district or districts that is annexed to each annexing
9district bears to the total pupil enrollment from the entire
10annexed district or districts, as such pupil enrollment is
11determined for the school year last ending prior to the date
12when the change of boundaries attributable to the annexation
13becomes effective for all purposes. The amount of the total
14difference payment and the amount thereof to be allocated to
15the annexing districts shall be computed by the State Board of
16Education on the basis of pupil enrollment and other data that
17shall be certified to the State Board of Education, on forms
18that it shall provide for that purpose, by the regional
19superintendent of schools for each educational service region
20in which the annexing and annexed districts are located.
21    (4) For a school district conversion, as defined in Section
2211E-15 of this Code, or a multi-unit conversion, as defined in
23subsection (b) of Section 11E-30 of this Code, if in their
24first year of existence the newly created elementary districts
25and the newly created high school district, from a school
26district conversion, or the newly created elementary district

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1in subsequent fiscal years until the payment obligation under
2this paragraph (6.5) is complete.
3    (7) Claims for financial assistance under this subsection
4(a) may not be recomputed except as expressly provided under
5Section 18-8.05 or 18-8.15 of this Code.
6    (8) Any supplementary payment made under this subsection
7(a) must be treated as separate from all other payments made
8pursuant to Section 18-8.05 or 18-8.15 of this Code.
9    (b)(1) After the formation of a combined school district,
10as defined in Section 11E-20 of this Code, or a unit district,
11as defined in Section 11E-25 of this Code, a computation shall
12be made to determine the difference between the salaries
13effective in each of the previously existing districts on June
1430, prior to the creation of the new district. For the first 4
15years after the formation of the new district, a supplementary
16State aid reimbursement shall be paid to the new district equal
17to the difference between the sum of the salaries earned by
18each of the certificated members of the new district, while
19employed in one of the previously existing districts during the
20year immediately preceding the formation of the new district,
21and the sum of the salaries those certificated members would
22have been paid during the year immediately prior to the
23formation of the new district if placed on the salary schedule
24of the previously existing district with the highest salary
25schedule.
26    (2) After the territory of one or more school districts is

 

 

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

 

 

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

 

 

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

 

 

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1    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    (5.5) After the formation of a cooperative high school by 2
8or more school districts under Section 10-22.22c of this Code,
9a computation shall be made to determine the difference between
10the salaries effective in each of the previously existing high
11schools on June 30 prior to the formation of the cooperative
12high school. For the first 4 years after the formation of the
13cooperative high school, a supplementary State aid
14reimbursement shall be paid to the cooperative high school
15equal to the difference between the sum of the salaries earned
16by each of the certificated members of the cooperative high
17school while employed in one of the previously existing high
18schools during the year immediately preceding the formation of
19the cooperative high school and the sum of the salaries those
20certificated members would have been paid during the year
21immediately prior to the formation of the cooperative high
22school if placed on the salary schedule of the previously
23existing high school with the highest salary schedule.
24    (5.10) After the annexation of territory detached from
25another school district whereby the enrollment of the annexing
26district increases by 90% or more as a result of the

 

 

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1annexation, a computation shall be made to determine the
2difference between the salaries effective in the district
3gaining territory and the district losing territory as they
4each were constituted on June 30 preceding the date when the
5change of boundaries attributable to the annexation became
6effective for all purposes as determined under Section 7-9 of
7this Code. For the first 4 years after the annexation, a
8supplementary State aid reimbursement shall be paid to the
9annexing district equal to the difference between the sum of
10the salaries earned by each of the certificated members of the
11annexing district as constituted after the annexation while
12employed in the district gaining territory or the district
13losing territory during the year immediately preceding the
14annexation and the sum of the salaries those certificated
15members would have been paid during such immediately preceding
16year if placed on the salary schedule of whichever of the
17district gaining territory or district losing territory had the
18highest salary schedule during the immediately preceding year.
19To be eligible for supplementary State aid reimbursement under
20this Section, the intergovernmental agreement to be submitted
21pursuant to Section 7-14A of this Code must show that staff
22members were transferred from the control of the district
23losing territory to the control of the district gaining
24territory in the annexation. The changes to this Section made
25by Public Act 95-707 are intended to be retroactive and
26applicable to any annexation taking effect on or after July 1,

 

 

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12004. For annexations that are eligible for payments under this
2paragraph (5.10) and that are effective on or after July 1,
32004, but before January 11, 2008 (the effective date of Public
4Act 95-707), the first required yearly payment under this
5paragraph (5.10) shall be paid in the fiscal year of January
611, 2008 (the effective date of Public Act 95-707). Subsequent
7required yearly payments shall be paid in subsequent fiscal
8years until the payment obligation under this paragraph (5.10)
9is complete.
10    (5.15) After the deactivation of a school facility in
11accordance with Section 10-22.22b of this Code, a computation
12shall be made to determine the difference between the salaries
13effective in the sending school district and each receiving
14school district on June 30 prior to the deactivation of the
15school facility. For the lesser of the first 4 years after the
16deactivation of the school facility or the length of the
17deactivation agreement, including any renewals of the original
18deactivation agreement, a supplementary State aid
19reimbursement shall be paid to each receiving district equal to
20the difference between the sum of the salaries earned by each
21of the certificated members transferred to that receiving
22district as a result of the deactivation while employed in the
23sending district during the year immediately preceding the
24deactivation and the sum of the salaries those certificated
25members would have been paid during the year immediately
26preceding the deactivation if placed on the salary schedule of

 

 

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1the sending or receiving district with the highest salary
2schedule.
3    (6) The supplementary State aid reimbursement under this
4subsection (b) shall be treated as separate from all other
5payments made pursuant to Section 18-8.05 of this Code. In the
6case of the formation of a new district or cooperative high
7school or a deactivation, reimbursement shall begin during the
8first year of operation of the new district or cooperative high
9school or the first year of the deactivation, and in the case
10of an annexation of the territory of one or more school
11districts by one or more other school districts or the
12annexation of territory detached from a school district whereby
13the enrollment of the annexing district increases by 90% or
14more as a result of the annexation, reimbursement shall begin
15during the first year when the change in boundaries
16attributable to the annexation becomes effective for all
17purposes as determined pursuant to Section 7-9 of this Code,
18except that for an annexation of territory detached from a
19school district that is effective on or after July 1, 2004, but
20before January 11, 2008 (the effective date of Public Act
2195-707), whereby the enrollment of the annexing district
22increases by 90% or more as a result of the annexation,
23reimbursement shall begin during the fiscal year of January 11,
242008 (the effective date of Public Act 95-707). Each year that
25the new, annexing, or receiving district or cooperative high
26school, as the case may be, is entitled to receive

 

 

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

 

 

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

 

 

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

 

 

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1    same ratio as the sum of the combined audited fund balance
2    deficit of each annexing district as constituted prior to
3    the annexation, plus all combined audited fund balance
4    deficit amounts apportioned to that annexing district
5    under clause (B) of this subsection, bears to the aggregate
6    of the combined audited fund balance deficits of all of the
7    annexing and annexed districts as constituted prior to the
8    annexation.
9    (4) For the new elementary districts and new high school
10district formed through a school district conversion, as
11defined in Section 11E-15 of this Code or the new elementary
12district or districts and new combined high school - unit
13district formed through a multi-unit conversion, as defined in
14subsection (b) of Section 11E-30 of this Code, a computation
15shall be made totaling each previously existing district's
16audited fund balances in the educational fund, working cash
17fund, operations and maintenance fund, and transportation fund
18for the year ending June 30 prior to the referendum
19establishing the new districts. In the first year of the new
20districts, the State shall make a one-time supplementary
21payment equal to the sum of the differences between the deficit
22of the previously existing district with the smallest deficit
23and the deficits of each of the other previously existing
24districts. A district with a combined balance among the 4 funds
25that is positive shall be considered to have a deficit of zero.
26The supplementary payment shall be allocated among the newly

 

 

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

 

 

09800SB0016sam002- 198 -LRB098 04277 NHT 59066 a

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

 

 

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1    opt-in.
2        (D) If the effective date for the elementary opt-in is
3    4 years after the effective date for the optional
4    elementary unit district, 25% of the calculated excess
5    shall be paid to the optional elementary unit district in
6    the first year after the effective date of the elementary
7    opt-in.
8        (E) If the effective date for the elementary opt-in is
9    5 years after the effective date for the optional
10    elementary unit district, the optional elementary unit
11    district is not eligible for any additional incentives due
12    to the elementary opt-in.
13    (6.5) For the first year after the annexation of territory
14detached from another school district whereby the enrollment of
15the annexing district increases by 90% or more as a result of
16the annexation, a computation shall be made totaling the
17audited fund balances of the district gaining territory and the
18audited fund balances of the district losing territory in the
19educational fund, working cash fund, operations and
20maintenance fund, and transportation fund for the year ending
21June 30 prior to the date that the change of boundaries
22attributable to the annexation is allowed by the affirmative
23decision of the regional board of school trustees under Section
247-6 of this Code, notwithstanding any action for administrative
25review of the decision. The annexing district as constituted
26after the annexation shall be paid supplementary State aid

 

 

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

 

 

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1January 11, 2008 (the effective date of Public Act 95-707).
2    (7) For purposes of any calculation required under
3paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
4subsection (c), a district with a combined fund balance that is
5positive shall be considered to have a deficit of zero. For
6purposes of determining each district's audited fund balances
7in its educational fund, working cash fund, operations and
8maintenance fund, and transportation fund for the specified
9year ending June 30, as provided in paragraphs (1), (2), (3),
10(4), (5), (6), and (6.5) of this subsection (c), the balance of
11each fund shall be deemed decreased by an amount equal to the
12amount of the annual property tax theretofore levied in the
13fund by the district for collection and payment to the district
14during the calendar year in which the June 30 fell, but only to
15the extent that the tax so levied in the fund actually was
16received by the district on or before or comprised a part of
17the fund on such June 30. For purposes of determining each
18district's audited fund balances, a calculation shall be made
19for each fund to determine the average for the 3 years prior to
20the specified year ending June 30, as provided in paragraphs
21(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
22of the district's expenditures in the categories "purchased
23services", "supplies and materials", and "capital outlay", as
24those categories are defined in rules of the State Board of
25Education. If this 3-year average is less than the district's
26expenditures in these categories for the specified year ending

 

 

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1June 30, as provided in paragraphs (1), (2), (3), (4), (5),
2(6), and (6.5) of this subsection (c), then the 3-year average
3shall be used in calculating the amounts payable under this
4Section in place of the amounts shown in these categories for
5the specified year ending June 30, as provided in paragraphs
6(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
7Any deficit because of State aid not yet received may not be
8considered in determining the June 30 deficits. The same basis
9of accounting shall be used by all previously existing
10districts and by all annexing or annexed districts, as
11constituted prior to the annexation, in making any computation
12required under paragraphs (1), (2), (3), (4), (5), (6), and
13(6.5) of this subsection (c).
14    (8) The supplementary State aid payments under this
15subsection (c) shall be treated as separate from all other
16payments made pursuant to Section 18-8.05 of this Code.
17    (d)(1) Following the formation of a combined school
18district, as defined in Section 11E-20 of this Code, a new unit
19district, as defined in Section 11E-25 of this Code, a new
20elementary district or districts and a new high school district
21formed through a school district conversion, as defined in
22Section 11E-15 of this Code, a new partial elementary unit
23district, as defined in Section 11E-30 of this Code, or a new
24elementary district or districts formed through a multi-unit
25conversion, as defined in subsection (b) of Section 11E-30 of
26this Code, or the annexation of all of the territory of one or

 

 

 

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1more entire school districts by one or more other school
2districts, as defined in Article 7 of this Code, a
3supplementary State aid reimbursement shall be paid for the
4number of school years determined under the following table to
5each new or annexing district equal to the sum of $4,000 for
6each certified employee who is employed by the district on a
7full-time basis for the regular term of the school year:
 
8Reorganized District's RankReorganized District's Rank
9by type of district (unit,in Average Daily Attendance
10high school, elementary)By Quintile
11in Equalized Assessed Value
12Per Pupil by Quintile
133rd, 4th,
141st2ndor 5th
15QuintileQuintileQuintile
16    1st Quintile1 year1 year1 year
17    2nd Quintile1 year2 years2 years
18    3rd Quintile2 years3 years3 years
19    4th Quintile2 years3 years3 years
20    5th Quintile2 years3 years3 years
21The State Board of Education shall make a one-time calculation
22of a reorganized district's quintile ranks. The average daily
23attendance used in this calculation shall be the best 3 months'
24average daily attendance for the district's first year. The

 

 

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1equalized assessed value per pupil shall be the district's real
2property equalized assessed value used in calculating the
3district's first-year general State aid claim, under Section
418-8.05 of this Code, or first-year primary State aid claim,
5under Section 18-8.15 of this Code, as applicable, divided by
6the best 3 months' average daily attendance.
7    No annexing or resulting school district shall be entitled
8to supplementary State aid under this subsection (d) unless the
9district acquires at least 30% of the average daily attendance
10of the district from which the territory is being detached or
11divided.
12    If a district results from multiple reorganizations that
13would otherwise qualify the district for multiple payments
14under this subsection (d) in any year, then the district shall
15receive a single payment only for that year based solely on the
16most recent reorganization.
17    (2) For an elementary opt-in, as defined in subsection (d)
18of Section 11E-30 of this Code, the full-time certified staff
19incentive shall be computed in accordance with paragraph (1) of
20this subsection (d), equal to the sum of $4,000 for each
21certified employee of the elementary district that opts-in who
22is employed by the optional elementary unit district on a
23full-time basis for the regular term of the school year. The
24calculation from this paragraph (2) must be paid as follows:
25        (A) If the effective date for the elementary opt-in is
26    one year after the effective date for the optional

 

 

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1    elementary unit district, 100% of the amount calculated in
2    this paragraph (2) shall be paid to the optional elementary
3    unit district for the number of years calculated in
4    paragraph (1) of this subsection (d) at the optional
5    elementary unit district's original effective date,
6    starting in the second year after the effective date of the
7    elementary opt-in.
8        (B) If the effective date for the elementary opt-in is
9    2 years after the effective date for the optional
10    elementary unit district, 75% of the amount calculated in
11    this paragraph (2) shall be paid to the optional elementary
12    unit district for the number of years calculated in
13    paragraph (1) of this subsection (d) at the optional
14    elementary unit district's original effective date,
15    starting in the second year after the effective date of the
16    elementary opt-in.
17        (C) If the effective date for the elementary opt-in is
18    3 years after the effective date for the optional
19    elementary unit district, 50% of the amount calculated in
20    this paragraph (2) shall be paid to the optional elementary
21    unit district for the number of years calculated in
22    paragraph (1) of this subsection (d) at the optional
23    elementary unit district's original effective date,
24    starting in the second year after the effective date of the
25    elementary opt-in.
26        (D) If the effective date for the elementary opt-in is

 

 

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

 

 

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1another school district whereby the enrollment of the annexing
2district increases 90% or more as a result of the annexation, a
3supplementary State aid reimbursement shall be paid to the
4annexing district equal to the sum of $4,000 for each certified
5employee who is employed by the annexing district on a
6full-time basis and shall be calculated in accordance with
7subsection (a) of this Section. 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 certified staff
11members were transferred from the control of the district
12losing territory to the control of the district gaining
13territory in the annexation. The changes to this Section made
14by Public Act 95-707 are intended to be retroactive and
15applicable to any annexation taking effect on or after July 1,
162004. For annexations that are eligible for payments under this
17paragraph (2.10) and that are effective on or after July 1,
182004, but before January 11, 2008 (the effective date of Public
19Act 95-707), the first required yearly payment under this
20paragraph (2.10) shall be paid in the second fiscal year after
21January 11, 2008 (the effective date of Public Act 95-707). Any
22subsequent required yearly payments shall be paid in subsequent
23fiscal years until the payment obligation under this paragraph
24(2.10) is complete.
25    (2.15) Following the deactivation of a school facility in
26accordance with Section 10-22.22b of this Code, a supplementary

 

 

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1State aid reimbursement shall be paid for the lesser of 3
2school years or the length of the deactivation agreement,
3including any renewals of the original deactivation agreement,
4to each receiving school district equal to the sum of $4,000
5for each certified employee who is employed by that receiving
6district on a full-time basis for the regular term of any such
7school year who was originally transferred to the control of
8that receiving district as a result of the deactivation.
9Receiving districts are eligible for payments under this
10paragraph (2.15) based on the certified employees transferred
11to that receiving district as a result of the deactivation and
12are not required to receive at least 30% of the deactivating
13district's average daily attendance as required under
14paragraph (1) of this subsection (d) to be eligible for
15payments.
16    (3) The supplementary State aid reimbursement payable
17under this subsection (d) shall be separate from and in
18addition to all other payments made to the district pursuant to
19any other Section of this Article.
20    (4) During May of each school year for which a
21supplementary State aid reimbursement is to be paid to a new,
22annexing, or receiving school district or cooperative high
23school pursuant to this subsection (d), the school board or
24governing board shall certify to the State Board of Education,
25on forms furnished to the school board or governing board by
26the State Board of Education for purposes of this subsection

 

 

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1(d), the number of certified employees for which the district
2or cooperative high school is entitled to reimbursement under
3this Section, together with the names, certificate numbers, and
4positions held by the certified employees.
5    (5) Upon certification by the State Board of Education to
6the State Comptroller of the amount of the supplementary State
7aid reimbursement to which a school district or cooperative
8high school is entitled under this subsection (d), the State
9Comptroller shall draw his or her warrant upon the State
10Treasurer for the payment thereof to the school district or
11cooperative high school and shall promptly transmit the payment
12to the school district or cooperative high school through the
13appropriate school treasurer.
14(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
1595-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
 
16    (105 ILCS 5/13A-8)
17    Sec. 13A-8. Funding.
18    (a) The State of Illinois shall provide funding for the
19alternative school programs within each educational service
20region and within the Chicago public school system by line item
21appropriation made to the State Board of Education for that
22purpose. This money, when appropriated, shall be provided to
23the regional superintendent and to the Chicago Board of
24Education, who shall establish a budget, including salaries,
25for their alternative school programs. Each program shall

 

 

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1receive funding in the amount of $30,000 plus an amount based
2on the ratio of the region's or Chicago's best 3 months'
3average daily attendance in grades pre-kindergarten through 12
4to the statewide totals of these amounts. For purposes of this
5calculation, the best 3 months' average daily attendance for
6each region or Chicago shall be calculated by adding to the
7best 3 months' average daily attendance the number of
8low-income students identified in the most recently available
9federal census multiplied by one-half times the percentage of
10the region's or Chicago's low-income students to the State's
11total low-income students. The State Board of Education shall
12retain up to 1.1% of the appropriation to be used to provide
13technical assistance, professional development, and
14evaluations for the programs.
15    (a-5) Notwithstanding any other provisions of this
16Section, for the 1998-1999 fiscal year, the total amount
17distributed under subsection (a) for an alternative school
18program shall be not less than the total amount that was
19distributed under that subsection for that alternative school
20program for the 1997-1998 fiscal year. If an alternative school
21program is to receive a total distribution under subsection (a)
22for the 1998-1999 fiscal year that is less than the total
23distribution that the program received under that subsection
24for the 1997-1998 fiscal year, that alternative school program
25shall also receive, from a separate appropriation made for
26purposes of this subsection (a-5), a supplementary payment

 

 

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1equal to the amount by which its total distribution under
2subsection (a) for the 1997-1998 fiscal year exceeds the amount
3of the total distribution that the alternative school program
4receives under that subsection for the 1998-1999 fiscal year.
5If the amount appropriated for supplementary payments to
6alternative school programs under this subsection (a-5) is
7insufficient for that purpose, those supplementary payments
8shall be prorated among the alternative school programs
9entitled to receive those supplementary payments according to
10the aggregate amount of the appropriation made for purposes of
11this subsection (a-5).
12    (b) An alternative school program shall be entitled to
13receive general State aid as calculated in subsection (K) of
14Section 18-8.05 or primary State aid as calculated in
15subsection (i) of Section 18-8.15 upon filing a claim as
16provided therein. Any time that a student who is enrolled in an
17alternative school program spends in work-based learning,
18community service, or a similar alternative educational
19setting shall be included in determining the student's minimum
20number of clock hours of daily school work that constitute a
21day of attendance for purposes of calculating general State aid
22or primary State aid.
23    (c) An alternative school program may receive additional
24funding from its school districts in such amount as may be
25agreed upon by the parties and necessary to support the
26program. In addition, an alternative school program is

 

 

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1authorized to accept and expend gifts, legacies, and grants,
2including but not limited to federal grants, from any source
3for purposes directly related to the conduct and operation of
4the program.
5(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
689-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;
790-802, eff. 12-15-98.)
 
8    (105 ILCS 5/13B-20.20)
9    Sec. 13B-20.20. Enrollment in other programs. General
10Educational Development preparation programs are not eligible
11for funding under this Article. A student may enroll in a
12program approved under Section 18-8.05 or 18-8.15 of this Code,
13as appropriate, or attend both the alternative learning
14opportunities program and the regular school program to enhance
15student performance and facilitate on-time graduation.
16(Source: P.A. 92-42, eff. 1-1-02.)
 
17    (105 ILCS 5/13B-45)
18    Sec. 13B-45. Days and hours of attendance. An alternative
19learning opportunities program shall provide students with at
20least the minimum number of days of pupil attendance required
21under Section 10-19 of this Code and the minimum number of
22daily hours of school work required under Section 18-8.05 or
2318-8.15 of this Code, provided that the State Board may approve
24exceptions to these requirements if the program meets all of

 

 

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1the following conditions:
2        (1) The district plan submitted under Section
3    13B-25.15 of this Code establishes that a program providing
4    the required minimum number of days of attendance or daily
5    hours of school work would not serve the needs of the
6    program's students.
7        (2) Each day of attendance shall provide no fewer than
8    3 clock hours of school work, as defined under paragraph
9    (1) of subsection (F) of Section 18-8.05 or subsection (f)
10    of Section 18-8.15 of this Code.
11        (3) Each day of attendance that provides fewer than 5
12    clock hours of school work shall also provide supplementary
13    services, including without limitation work-based
14    learning, student assistance programs, counseling, case
15    management, health and fitness programs, or life-skills or
16    conflict resolution training, in order to provide a total
17    daily program to the student of 5 clock hours. A program
18    may claim general State aid or primary State aid for up to
19    2 hours of the time each day that a student is receiving
20    supplementary services.
21        (4) Each program shall provide no fewer than 174 days
22    of actual pupil attendance during the school term; however,
23    approved evening programs that meet the requirements of
24    Section 13B-45 of this Code may offer less than 174 days of
25    actual pupil attendance during the school term.
26(Source: P.A. 92-42, eff. 1-1-02.)
 

 

 

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1    (105 ILCS 5/13B-50)
2    Sec. 13B-50. Eligibility to receive general State aid or
3primary State aid. In order to receive general State aid or
4primary State aid, alternative learning opportunities programs
5must meet the requirements for claiming general State aid as
6specified in Section 18-8.05 of this Code or primary State aid
7as specified in Section 18-8.15 of this Code, as applicable,
8with the exception of the length of the instructional day,
9which may be less than 5 hours of school work if the program
10meets the criteria set forth under Sections 13B-50.5 and
1113B-50.10 of this Code and if the program is approved by the
12State Board.
13(Source: P.A. 92-42, eff. 1-1-02.)
 
14    (105 ILCS 5/13B-50.10)
15    Sec. 13B-50.10. Additional criteria for general State aid
16or primary State aid. In order to claim general State aid or
17primary State aid, an alternative learning opportunities
18program must meet the following criteria:
19    (1) Teacher professional development plans should include
20education in the instruction of at-risk students.
21    (2) Facilities must meet the health, life, and safety
22requirements in this Code.
23    (3) The program must comply with all other State and
24federal laws applicable to education providers.

 

 

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1(Source: P.A. 92-42, eff. 1-1-02.)
 
2    (105 ILCS 5/13B-50.15)
3    Sec. 13B-50.15. Level of funding. Approved alternative
4learning opportunities programs are entitled to claim general
5State aid or primary State aid, subject to Sections 13B-50,
613B-50.5, and 13B-50.10 of this Code. Approved programs
7operated by regional offices of education are entitled to
8receive general State aid or primary State aid at the
9foundation level of support. A school district or consortium
10must ensure that an approved program receives supplemental
11general State aid, transportation reimbursements, and special
12education resources, if appropriate, for students enrolled in
13the program.
14(Source: P.A. 92-42, eff. 1-1-02.)
 
15    (105 ILCS 5/14-7.02)  (from Ch. 122, par. 14-7.02)
16    Sec. 14-7.02. Children attending private schools, public
17out-of-state schools, public school residential facilities or
18nonpublic private special education facilities. The General
19Assembly recognizes that nonpublic non-public schools or
20special education facilities provide an important service in
21the educational system in Illinois.
22    If because of his or her disability the special education
23program of a district is unable to meet the