Sen. Andy Manar

Filed: 5/13/2014

 

 


 

 


 
09800SB0016sam003LRB098 04277 NHT 59435 a

1
AMENDMENT TO SENATE BILL 16

2    AMENDMENT NO. ______. Amend Senate Bill 16 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the School
5Funding Reform Act of 2014.
 
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
15in Section 6 of this Act, and the Department has approved and

 

 

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

 

 

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

 

 

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1area in the same manner and proportion as the most recent
2distribution by the county collector to those taxing districts
3of real property taxes from real property in the economic
4development project area.
5    Upon the payment of all economic development project costs,
6retirement of obligations and the distribution of any excess
7monies pursuant to this Section the municipality shall adopt an
8ordinance dissolving the special tax allocation fund for the
9economic development project area, terminating the economic
10development project area, and terminating the use of tax
11increment allocation financing for the economic development
12project area. Thereafter the rates of the taxing districts
13shall be extended and taxes levied, collected and distributed
14in the manner applicable in the absence of the adoption of tax
15increment allocation financing.
16    Nothing in this Section shall be construed as relieving
17property in economic development project areas from being
18assessed as provided in the Property Tax Code, or as relieving
19owners of that property from paying a uniform rate of taxes, as
20required by Section 4 of Article IX of the Illinois
21Constitution.
22(Source: P.A. 98-463, eff. 8-16-13.)
 
23    Section 910. The State Finance Act is amended by changing
24Section 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
26transfers authorized in subsection (c) of this Section, the

 

 

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1fiscal year 2005 transfers authorized in this sentence may be
2made in an amount not to exceed 2% of the aggregate amount
3appropriated to an agency within the same treasury fund. During
4State fiscal year 2007, the Departments of Children and Family
5Services, Corrections, Human Services, and Juvenile Justice
6may transfer amounts among their respective appropriations
7within the same treasury fund for personal services, employee
8retirement contributions paid by employer, and State
9contributions to retirement systems. During State fiscal year
102010, the Department of Transportation may transfer amounts
11among their respective appropriations within the same treasury
12fund for personal services, employee retirement contributions
13paid by employer, and State contributions to retirement
14systems. During State fiscal years 2010 and 2014 only, an
15agency may transfer amounts among its respective
16appropriations within the same treasury fund for personal
17services, employee retirement contributions paid by employer,
18and State contributions to retirement systems.
19Notwithstanding, and in addition to, the transfers authorized
20in subsection (c) of this Section, these transfers may be made
21in an amount not to exceed 2% of the aggregate amount
22appropriated to an agency within the same treasury fund.
23    (a-3) Further, if an agency receives a separate
24appropriation for employee retirement contributions paid by
25the employer, any transfer by that agency into an appropriation
26for personal services must be accompanied by a corresponding

 

 

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

 

 

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

 

 

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1    The State Treasurer is authorized to make transfers among
2line item appropriations from the Capital Litigation Trust
3Fund, with respect to costs incurred in fiscal years 2002 and
42003 only, when the balance remaining in one or more such line
5item appropriations is insufficient for the purpose for which
6the appropriation was made, provided that no such transfer may
7be made unless the amount transferred is no longer required for
8the purpose for which that appropriation was made.
9    The State Board of Education is authorized to make
10transfers from line item appropriations within the same
11treasury fund for General State Aid, and General State Aid -
12Hold Harmless, Primary State Aid, and Hold Harmless State
13Funding, provided that no such transfer may be made unless the
14amount transferred is no longer required for the purpose for
15which that appropriation was made, to the line item
16appropriation for Transitional Assistance when the balance
17remaining in such line item appropriation is insufficient for
18the purpose for which the appropriation was made.
19    The State Board of Education is authorized to make
20transfers between the following line item appropriations
21within the same treasury fund: Disabled Student
22Services/Materials (Section 14-13.01 of the School Code),
23Disabled Student Transportation Reimbursement (Section
2414-13.01 of the School Code), Disabled Student Tuition -
25Private Tuition (Section 14-7.02 of the School Code),
26Extraordinary Special Education (Section 14-7.02b of the

 

 

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1School Code), Reimbursement for Free Lunch/Breakfast Program,
2Summer School Payments (Section 18-4.3 of the School Code), and
3Transportation - Regular/Vocational Reimbursement (Section
429-5 of the School Code). Such transfers shall be made only
5when the balance remaining in one or more such line item
6appropriations is insufficient for the purpose for which the
7appropriation was made and 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 Department of Healthcare and Family Services is
11authorized to make transfers not exceeding 4% of the aggregate
12amount appropriated to it, within the same treasury fund, among
13the various line items appropriated for Medical Assistance.
14    (c) The sum of such transfers for an agency in a fiscal
15year shall not exceed 2% of the aggregate amount appropriated
16to it within the same treasury fund for the following objects:
17Personal Services; Extra Help; Student and Inmate
18Compensation; State Contributions to Retirement Systems; State
19Contributions to Social Security; State Contribution for
20Employee Group Insurance; Contractual Services; Travel;
21Commodities; Printing; Equipment; Electronic Data Processing;
22Operation of Automotive Equipment; Telecommunications
23Services; Travel and Allowance for Committed, Paroled and
24Discharged Prisoners; Library Books; Federal Matching Grants
25for Student Loans; Refunds; Workers' Compensation,
26Occupational Disease, and Tort Claims; and, in appropriations

 

 

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

 

 

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

 

 

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

 

 

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1    (subsection (b) of Section 14-13.01 of the School Code);
2        (3) Disabled Student Tuition - Private Tuition
3    (Section 14-7.02 of the School Code);
4        (4) Extraordinary Special Education (Section 14-7.02b
5    of the School Code);
6        (5) Reimbursement for Free Lunch/Breakfast Programs;
7        (6) Summer School Payments (Section 18-4.3 of the
8    School Code);
9        (7) Transportation - Regular/Vocational Reimbursement
10    (Section 29-5 of the School Code);
11        (8) Regular Education Reimbursement (Section 18-3 of
12    the School Code); and
13        (9) Special Education Reimbursement (Section 14-7.03
14    of the School Code).
15(Source: P.A. 97-689, eff. 7-1-12; 98-24, eff. 6-19-13.)
 
16    Section 915. The Property Tax Code is amended by changing
17Sections 18-200 and 18-249 as follows:
 
18    (35 ILCS 200/18-200)
19    Sec. 18-200. School Code. A school district's State aid
20shall not be reduced under the computation under subsections
215(a) through 5(h) of Part A of Section 18-8 of the School Code
22or under subsection (e) of Section 18-8.15 of the School Code
23due to the operating tax rate falling from above the minimum
24requirement of that Section of the School Code to below the

 

 

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1minimum requirement of that Section of the School Code due to
2the operation of this Law.
3(Source: P.A. 87-17; 88-455.)
 
4    (35 ILCS 200/18-249)
5    Sec. 18-249. Miscellaneous provisions.
6    (a) Certification of new property. For the 1994 levy year,
7the chief county assessment officer shall certify to the county
8clerk, after all changes by the board of review or board of
9appeals, as the case may be, the assessed value of new property
10by taxing district for the 1994 levy year under rules
11promulgated by the Department.
12    (b) School Code. A school district's State aid shall not be
13reduced under the computation under subsections 5(a) through
145(h) of Part A of Section 18-8 of the School Code or under
15subsection (e) of Section 18-8.15 of the School Code due to the
16operating tax rate falling from above the minimum requirement
17of that Section of the School Code to below the minimum
18requirement of that Section of the School Code due to the
19operation of this Law.
20    (c) Rules. The Department shall make and promulgate
21reasonable rules relating to the administration of the purposes
22and provisions of Sections 18-246 through 18-249 as may be
23necessary or appropriate.
24(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
25the ordinance creating the district, a legal description of the

 

 

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1district, a map of the district, identification of the year
2that the county clerk shall use for determining the total
3initial equalized assessed value of the district consistent
4with subsection (c), and a list of the parcel or tax
5identification number of each parcel of property included in
6the district.
7    (c) Upon approval of a STAR bond district, the county clerk
8immediately thereafter shall determine (i) the most recently
9ascertained equalized assessed value of each lot, block, tract,
10or parcel of real property within the STAR bond district, from
11which shall be deducted the homestead exemptions under Article
1215 of the Property Tax Code, which value shall be the initial
13equalized assessed value of each such piece of property, and
14(ii) the total equalized assessed value of all taxable real
15property within the district by adding together the most
16recently ascertained equalized assessed value of each taxable
17lot, block, tract, or parcel of real property within the
18district, from which shall be deducted the homestead exemptions
19under Article 15 of the Property Tax Code, and shall certify
20that amount as the total initial equalized assessed value of
21the taxable real property within the STAR bond district.
22    (d) In reference to any STAR bond district created within
23any political subdivision, and in respect to which the county
24clerk has certified the total initial equalized assessed value
25of the property in the area, the political subdivision may
26thereafter request the clerk in writing to adjust the initial

 

 

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

 

 

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

 

 

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

 

 

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1STAR Bonds School Improvement and Operations Trust Fund. The
2county collector shall hold that amount in a separate fund
3until the appeal process is final. After the appeal process is
4finalized, the county collector shall transmit to the
5Department the amount of tax that remains, if any, after all
6required refunds are made. The Department shall pay any amount
7deposited into the Trust Fund under this Section in the same
8proportion as determined for payments for that taxable year
9under subsection (h).
10    (j) In any year that ad valorem taxes are allocated to the
11STAR Bonds School Improvement and Operations Trust Fund, that
12allocation shall not reduce or otherwise impact the school aid
13provided to any school district under the general State school
14aid formula provided for in Section 18-8.05 of the School Code
15or the primary State aid formula provided for in Section
1618-8.15 of the School Code.
17(Source: P.A. 96-939, eff. 6-24-10.)
 
18    Section 925. The County Economic Development Project Area
19Property Tax Allocation Act is amended by changing Section 7 as
20follows:
 
21    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
22    Sec. 7. Creation of special tax allocation fund. If a
23county has adopted property tax allocation financing by
24ordinance for an economic development project area, the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (a) If a county clerk has certified the "total initial
2equalized assessed value" of the taxable real property within
3an economic development project area in the manner provided in
4Section 45, each year after the date of the certification by
5the county clerk of the "total initial equalized assessed
6value", until economic development project costs and all county
7obligations financing economic development project costs have
8been paid, the ad valorem taxes, if any, arising from the
9levies upon the taxable real property in the economic
10development project area by taxing districts and tax rates
11determined in the manner provided in subsection (b) of Section
1245 shall be divided as follows:
13        (1) That portion of the taxes levied upon each taxable
14    lot, block, tract, or parcel of real property that is
15    attributable to the lower of the current equalized assessed
16    value or the initial equalized assessed value of each
17    taxable lot, block, tract, or parcel of real property
18    existing at the time tax increment financing was adopted
19    shall be allocated to (and when collected shall be paid by
20    the county collector to) the respective affected taxing
21    districts in the manner required by law in the absence of
22    the adoption of tax increment allocation financing.
23        (2) That portion, if any, of the taxes that is
24    attributable to the increase in the current equalized
25    assessed valuation of each taxable lot, block, tract, or
26    parcel of real property in the economic development project

 

 

09800SB0016sam003- 27 -LRB098 04277 NHT 59435 a

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

 

 

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1by the county treasurer to the county collector, who shall
2immediately pay the monies to the taxing districts having
3taxable property in the economic development project area in
4the same manner and proportion as the most recent distribution
5by the county collector to those taxing districts of real
6property taxes from real property in the economic development
7project area.
8    (d) Upon the payment of all economic development project
9costs, retirement of obligations, and distribution of any
10excess monies under this Section, the county shall adopt an
11ordinance dissolving the special tax allocation fund for the
12economic development project area and terminating the
13designation of the economic development project area as an
14economic development project area. Thereafter, the rates of the
15taxing districts shall be extended and taxes shall be levied,
16collected, and distributed in the manner applicable in the
17absence of the adoption of tax increment allocation financing.
18    (e) Nothing in this Section shall be construed as relieving
19property in the economic development project areas from being
20assessed as provided in the Property Tax Code or as relieving
21owners of that property from paying a uniform rate of taxes as
22required by Section 4 of Article IX of the Illinois
23Constitution.
24(Source: P.A. 98-463, eff. 8-16-13.)
 
25    Section 935. The Illinois Municipal Code is amended by

 

 

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1changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
2follows:
 
3    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
4    Sec. 11-74.4-3. Definitions. The following terms, wherever
5used or referred to in this Division 74.4 shall have the
6following respective meanings, unless in any case a different
7meaning clearly appears from the context.
8    (a) For any redevelopment project area that has been
9designated pursuant to this Section by an ordinance adopted
10prior to November 1, 1999 (the effective date of Public Act
1191-478), "blighted area" shall have the meaning set forth in
12this Section prior to that date.
13    On and after November 1, 1999, "blighted area" means any
14improved or vacant area within the boundaries of a
15redevelopment project area located within the territorial
16limits of the municipality where:
17        (1) If improved, industrial, commercial, and
18    residential buildings or improvements are detrimental to
19    the public safety, health, or welfare because of a
20    combination of 5 or more of the following factors, each of
21    which is (i) present, with that presence documented, to a
22    meaningful extent so that a municipality may reasonably
23    find that the factor is clearly present within the intent
24    of the Act and (ii) reasonably distributed throughout the
25    improved part of the redevelopment project area:

 

 

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

 

 

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

 

 

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

 

 

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1        of incompatible land-use relationships, buildings
2        occupied by inappropriate mixed-uses, or uses
3        considered to be noxious, offensive, or unsuitable for
4        the surrounding area.
5            (K) Environmental clean-up. The proposed
6        redevelopment project area has incurred Illinois
7        Environmental Protection Agency or United States
8        Environmental Protection Agency remediation costs for,
9        or a study conducted by an independent consultant
10        recognized as having expertise in environmental
11        remediation has determined a need for, the clean-up of
12        hazardous waste, hazardous substances, or underground
13        storage tanks required by State or federal law,
14        provided that the remediation costs constitute a
15        material impediment to the development or
16        redevelopment of the redevelopment project area.
17            (L) 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.
20        This means that the development occurred prior to the
21        adoption by the municipality of a comprehensive or
22        other community plan or that the plan was not followed
23        at the time of the area's development. This factor must
24        be documented by evidence of adverse or incompatible
25        land-use relationships, inadequate street layout,
26        improper subdivision, parcels of inadequate shape and

 

 

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1        size to meet contemporary development standards, or
2        other evidence demonstrating an absence of effective
3        community planning.
4            (M) 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        (2) If vacant, the sound growth of the redevelopment
18    project area is impaired by a combination of 2 or more of
19    the following factors, each of which is (i) present, with
20    that presence documented, to a meaningful extent so that a
21    municipality may reasonably find that the factor is clearly
22    present within the intent of the Act and (ii) reasonably
23    distributed throughout the vacant part of the
24    redevelopment project area to which it pertains:
25            (A) Obsolete platting of vacant land that results
26        in parcels of limited or narrow size or configurations

 

 

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

 

 

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

 

 

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

 

 

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1        immediately prior to becoming vacant, unless there has
2        been substantial private investment in the immediately
3        surrounding area.
4    (b) For any redevelopment project area that has been
5designated pursuant to this Section by an ordinance adopted
6prior to November 1, 1999 (the effective date of Public Act
791-478), "conservation area" shall have the meaning set forth
8in this Section prior to that date.
9    On and after November 1, 1999, "conservation area" means
10any improved area within the boundaries of a redevelopment
11project area located within the territorial limits of the
12municipality in which 50% or more of the structures in the area
13have an age of 35 years or more. Such an area is not yet a
14blighted area but because of a combination of 3 or more of the
15following factors is detrimental to the public safety, health,
16morals or welfare and such an area may become a blighted area:
17        (1) Dilapidation. An advanced state of disrepair or
18    neglect of necessary repairs to the primary structural
19    components of buildings or improvements in such a
20    combination that a documented building condition analysis
21    determines that major repair is required or the defects are
22    so serious and so extensive that the buildings must be
23    removed.
24        (2) Obsolescence. The condition or process of falling
25    into disuse. Structures have become ill-suited for the
26    original use.

 

 

09800SB0016sam003- 39 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

09800SB0016sam003- 41 -LRB098 04277 NHT 59435 a

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

 

 

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1    demonstrating an absence of effective community planning.
2        (12) The area has incurred Illinois Environmental
3    Protection Agency or United States Environmental
4    Protection Agency remediation costs for, or a study
5    conducted by an independent consultant recognized as
6    having expertise in environmental remediation has
7    determined a need for, the clean-up of hazardous waste,
8    hazardous substances, or underground storage tanks
9    required by State or federal law, provided that the
10    remediation costs constitute a material impediment to the
11    development or redevelopment of the redevelopment project
12    area.
13        (13) The total equalized assessed value of the proposed
14    redevelopment project area has declined for 3 of the last 5
15    calendar years for which information is available or is
16    increasing at an annual rate that is less than the balance
17    of the municipality for 3 of the last 5 calendar years for
18    which information is available or is increasing at an
19    annual rate that is less than the Consumer Price Index for
20    All Urban Consumers published by the United States
21    Department of Labor or successor agency for 3 of the last 5
22    calendar years for which information is available.
23    (c) "Industrial park" means an area in a blighted or
24conservation area suitable for use by any manufacturing,
25industrial, research or transportation enterprise, of
26facilities to include but not be limited to factories, mills,

 

 

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

 

 

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1municipality shall be deemed to be the same as the unemployment
2rate in the principal county in which the municipality is
3located.
4    (f) "Municipality" shall mean a city, village,
5incorporated town, or a township that is located in the
6unincorporated portion of a county with 3 million or more
7inhabitants, if the county adopted an ordinance that approved
8the township's redevelopment plan.
9    (g) "Initial Sales Tax Amounts" means the amount of taxes
10paid under the Retailers' Occupation Tax Act, Use Tax Act,
11Service Use Tax Act, the Service Occupation Tax Act, the
12Municipal Retailers' Occupation Tax Act, and the Municipal
13Service Occupation Tax Act by retailers and servicemen on
14transactions at places located in a State Sales Tax Boundary
15during the calendar year 1985.
16    (g-1) "Revised Initial Sales Tax Amounts" means the amount
17of taxes paid under the Retailers' Occupation Tax Act, Use Tax
18Act, Service Use Tax Act, the Service Occupation Tax Act, the
19Municipal Retailers' Occupation Tax Act, and the Municipal
20Service Occupation Tax Act by retailers and servicemen on
21transactions at places located within the State Sales Tax
22Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
23    (h) "Municipal Sales Tax Increment" means an amount equal
24to the increase in the aggregate amount of taxes paid to a
25municipality from the Local Government Tax Fund arising from
26sales by retailers and servicemen within the redevelopment

 

 

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1project area or State Sales Tax Boundary, as the case may be,
2for as long as the redevelopment project area or State Sales
3Tax Boundary, as the case may be, exist over and above the
4aggregate amount of taxes as certified by the Illinois
5Department of Revenue and paid under the Municipal Retailers'
6Occupation Tax Act and the Municipal Service Occupation Tax Act
7by retailers and servicemen, on transactions at places of
8business located in the redevelopment project area or State
9Sales Tax Boundary, as the case may be, during the base year
10which shall be the calendar year immediately prior to the year
11in which the municipality adopted tax increment allocation
12financing. For purposes of computing the aggregate amount of
13such taxes for base years occurring prior to 1985, the
14Department of Revenue shall determine the Initial Sales Tax
15Amounts for such taxes and deduct therefrom an amount equal to
164% of the aggregate amount of taxes per year for each year the
17base year is prior to 1985, but not to exceed a total deduction
18of 12%. The amount so determined shall be known as the
19"Adjusted Initial Sales Tax Amounts". For purposes of
20determining the Municipal Sales Tax Increment, the Department
21of Revenue shall for each period subtract from the amount paid
22to the municipality from the Local Government Tax Fund arising
23from sales by retailers and servicemen on transactions located
24in the redevelopment project area or the State Sales Tax
25Boundary, as the case may be, the certified Initial Sales Tax
26Amounts, the Adjusted Initial Sales Tax Amounts or the Revised

 

 

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1Initial Sales Tax Amounts for the Municipal Retailers'
2Occupation Tax Act and the Municipal Service Occupation Tax
3Act. For the State Fiscal Year 1989, this calculation shall be
4made by utilizing the calendar year 1987 to determine the tax
5amounts received. For the State Fiscal Year 1990, this
6calculation shall be made by utilizing the period from January
71, 1988, until September 30, 1988, to determine the tax amounts
8received from retailers and servicemen pursuant to the
9Municipal Retailers' Occupation Tax and the Municipal Service
10Occupation Tax Act, which shall have deducted therefrom
11nine-twelfths of the certified Initial Sales Tax Amounts, the
12Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
13Tax Amounts as appropriate. For the State Fiscal Year 1991,
14this calculation shall be made by utilizing the period from
15October 1, 1988, to June 30, 1989, to determine the tax amounts
16received from retailers and servicemen pursuant to the
17Municipal Retailers' Occupation Tax and the Municipal Service
18Occupation Tax Act which shall have deducted therefrom
19nine-twelfths of the certified Initial Sales Tax Amounts,
20Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
21Tax Amounts as appropriate. For every State Fiscal Year
22thereafter, the applicable period shall be the 12 months
23beginning July 1 and ending June 30 to determine the tax
24amounts received which shall have deducted therefrom the
25certified Initial Sales Tax Amounts, the Adjusted Initial Sales
26Tax Amounts or the Revised Initial Sales Tax Amounts, as the

 

 

09800SB0016sam003- 47 -LRB098 04277 NHT 59435 a

1case may be.
2    (i) "Net State Sales Tax Increment" means the sum of the
3following: (a) 80% of the first $100,000 of State Sales Tax
4Increment annually generated within a State Sales Tax Boundary;
5(b) 60% of the amount in excess of $100,000 but not exceeding
6$500,000 of State Sales Tax Increment annually generated within
7a State Sales Tax Boundary; and (c) 40% of all amounts in
8excess of $500,000 of State Sales Tax Increment annually
9generated within a State Sales Tax Boundary. If, however, a
10municipality established a tax increment financing district in
11a county with a population in excess of 3,000,000 before
12January 1, 1986, and the municipality entered into a contract
13or issued bonds after January 1, 1986, but before December 31,
141986, to finance redevelopment project costs within a State
15Sales Tax Boundary, then the Net State Sales Tax Increment
16means, for the fiscal years beginning July 1, 1990, and July 1,
171991, 100% of the State Sales Tax Increment annually generated
18within a State Sales Tax Boundary; and notwithstanding any
19other provision of this Act, for those fiscal years the
20Department of Revenue shall distribute to those municipalities
21100% of their Net State Sales Tax Increment before any
22distribution to any other municipality and regardless of
23whether or not those other municipalities will receive 100% of
24their Net State Sales Tax Increment. For Fiscal Year 1999, and
25every year thereafter until the year 2007, for any municipality
26that has not entered into a contract or has not issued bonds

 

 

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1prior to June 1, 1988 to finance redevelopment project costs
2within a State Sales Tax Boundary, the Net State Sales Tax
3Increment shall be calculated as follows: By multiplying the
4Net State Sales Tax Increment by 90% in the State Fiscal Year
51999; 80% in the State Fiscal Year 2000; 70% in the State
6Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
7State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
8in the State Fiscal Year 2005; 20% in the State Fiscal Year
92006; and 10% in the State Fiscal Year 2007. No payment shall
10be made for State Fiscal Year 2008 and thereafter.
11    Municipalities that issued bonds in connection with a
12redevelopment project in a redevelopment project area within
13the State Sales Tax Boundary prior to July 29, 1991, or that
14entered into contracts in connection with a redevelopment
15project in a redevelopment project area before June 1, 1988,
16shall continue to receive their proportional share of the
17Illinois Tax Increment Fund distribution until the date on
18which the redevelopment project is completed or terminated. If,
19however, a municipality that issued bonds in connection with a
20redevelopment project in a redevelopment project area within
21the State Sales Tax Boundary prior to July 29, 1991 retires the
22bonds prior to June 30, 2007 or a municipality that entered
23into contracts in connection with a redevelopment project in a
24redevelopment project area before June 1, 1988 completes the
25contracts prior to June 30, 2007, then so long as the
26redevelopment project is not completed or is not terminated,

 

 

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1the Net State Sales Tax Increment shall be calculated,
2beginning on the date on which the bonds are retired or the
3contracts are completed, as follows: By multiplying the Net
4State Sales Tax Increment by 60% in the State Fiscal Year 2002;
550% in the State Fiscal Year 2003; 40% in the State Fiscal Year
62004; 30% in the State Fiscal Year 2005; 20% in the State
7Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
8payment shall be made for State Fiscal Year 2008 and
9thereafter. Refunding of any bonds issued prior to July 29,
101991, shall not alter the Net State Sales Tax Increment.
11    (j) "State Utility Tax Increment Amount" means an amount
12equal to the aggregate increase in State electric and gas tax
13charges imposed on owners and tenants, other than residential
14customers, of properties located within the redevelopment
15project area under Section 9-222 of the Public Utilities Act,
16over and above the aggregate of such charges as certified by
17the Department of Revenue and paid by owners and tenants, other
18than residential customers, of properties within the
19redevelopment project area during the base year, which shall be
20the calendar year immediately prior to the year of the adoption
21of the ordinance authorizing tax increment allocation
22financing.
23    (k) "Net State Utility Tax Increment" means the sum of the
24following: (a) 80% of the first $100,000 of State Utility Tax
25Increment annually generated by a redevelopment project area;
26(b) 60% of the amount in excess of $100,000 but not exceeding

 

 

09800SB0016sam003- 50 -LRB098 04277 NHT 59435 a

1$500,000 of the State Utility Tax Increment annually generated
2by a redevelopment project area; and (c) 40% of all amounts in
3excess of $500,000 of State Utility Tax Increment annually
4generated by a redevelopment project area. For the State Fiscal
5Year 1999, and every year thereafter until the year 2007, for
6any municipality that has not entered into a contract or has
7not issued bonds prior to June 1, 1988 to finance redevelopment
8project costs within a redevelopment project area, the Net
9State Utility Tax Increment shall be calculated as follows: By
10multiplying the Net State Utility Tax Increment by 90% in the
11State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
12in the State Fiscal Year 2001; 60% in the State Fiscal Year
132002; 50% in the State Fiscal Year 2003; 40% in the State
14Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
15State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
16No payment shall be made for the State Fiscal Year 2008 and
17thereafter.
18    Municipalities that issue bonds in connection with the
19redevelopment project during the period from June 1, 1988 until
203 years after the effective date of this Amendatory Act of 1988
21shall receive the Net State Utility Tax Increment, subject to
22appropriation, for 15 State Fiscal Years after the issuance of
23such bonds. For the 16th through the 20th State Fiscal Years
24after issuance of the bonds, the Net State Utility Tax
25Increment shall be calculated as follows: By multiplying the
26Net State Utility Tax Increment by 90% in year 16; 80% in year

 

 

09800SB0016sam003- 51 -LRB098 04277 NHT 59435 a

117; 70% in year 18; 60% in year 19; and 50% in year 20.
2Refunding of any bonds issued prior to June 1, 1988, shall not
3alter the revised Net State Utility Tax Increment payments set
4forth above.
5    (l) "Obligations" mean bonds, loans, debentures, notes,
6special certificates or other evidence of indebtedness issued
7by the municipality to carry out a redevelopment project or to
8refund outstanding obligations.
9    (m) "Payment in lieu of taxes" means those estimated tax
10revenues from real property in a redevelopment project area
11derived from real property that has been acquired by a
12municipality which according to the redevelopment project or
13plan is to be used for a private use which taxing districts
14would have received had a municipality not acquired the real
15property and adopted tax increment allocation financing and
16which would result from levies made after the time of the
17adoption of tax increment allocation financing to the time the
18current equalized value of real property in the redevelopment
19project area exceeds the total initial equalized value of real
20property in said area.
21    (n) "Redevelopment plan" means the comprehensive program
22of the municipality for development or redevelopment intended
23by the payment of redevelopment project costs to reduce or
24eliminate those conditions the existence of which qualified the
25redevelopment project area as a "blighted area" or
26"conservation area" or combination thereof or "industrial park

 

 

09800SB0016sam003- 52 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 53 -LRB098 04277 NHT 59435 a

1    issued;
2        (F) the most recent equalized assessed valuation of the
3    redevelopment project area;
4        (G) an estimate as to the equalized assessed valuation
5    after redevelopment and the general land uses to apply in
6    the redevelopment project area;
7        (H) a commitment to fair employment practices and an
8    affirmative action plan;
9        (I) if it concerns an industrial park conservation
10    area, the plan shall also include a general description of
11    any proposed developer, user and tenant of any property, a
12    description of the type, structure and general character of
13    the facilities to be developed, a description of the type,
14    class and number of new employees to be employed in the
15    operation of the facilities to be developed; and
16        (J) if property is to be annexed to the municipality,
17    the plan shall include the terms of the annexation
18    agreement.
19    The provisions of items (B) and (C) of this subsection (n)
20shall not apply to a municipality that before March 14, 1994
21(the effective date of Public Act 88-537) had fixed, either by
22its corporate authorities or by a commission designated under
23subsection (k) of Section 11-74.4-4, a time and place for a
24public hearing as required by subsection (a) of Section
2511-74.4-5. No redevelopment plan shall be adopted unless a
26municipality complies with all of the following requirements:

 

 

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

 

 

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

 

 

09800SB0016sam003- 56 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 57 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

09800SB0016sam003- 59 -LRB098 04277 NHT 59435 a

1redevelopment plan. On and after November 1, 1999 (the
2effective date of Public Act 91-478), no redevelopment plan may
3be approved or amended that includes the development of vacant
4land (i) with a golf course and related clubhouse and other
5facilities or (ii) designated by federal, State, county, or
6municipal government as public land for outdoor recreational
7activities or for nature preserves and used for that purpose
8within 5 years prior to the adoption of the redevelopment plan.
9For the purpose of this subsection, "recreational activities"
10is limited to mean camping and hunting.
11    (p) "Redevelopment project area" means an area designated
12by the municipality, which is not less in the aggregate than 1
131/2 acres and in respect to which the municipality has made a
14finding that there exist conditions which cause the area to be
15classified as an industrial park conservation area or a
16blighted area or a conservation area, or a combination of both
17blighted areas and conservation areas.
18    (p-1) Notwithstanding any provision of this Act to the
19contrary, on and after August 25, 2009 (the effective date of
20Public Act 96-680), a redevelopment project area may include
21areas within a one-half mile radius of an existing or proposed
22Regional Transportation Authority Suburban Transit Access
23Route (STAR Line) station without a finding that the area is
24classified as an industrial park conservation area, a blighted
25area, a conservation area, or a combination thereof, but only
26if the municipality receives unanimous consent from the joint

 

 

09800SB0016sam003- 60 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

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1    limited to parking lots and other concrete or asphalt
2    barriers, and the clearing and grading of land;
3        (3) Costs of rehabilitation, reconstruction or repair
4    or remodeling of existing public or private buildings,
5    fixtures, and leasehold improvements; and the cost of
6    replacing an existing public building if pursuant to the
7    implementation of a redevelopment project the existing
8    public building is to be demolished to use the site for
9    private investment or devoted to a different use requiring
10    private investment; including any direct or indirect costs
11    relating to Green Globes or LEED certified construction
12    elements or construction elements with an equivalent
13    certification;
14        (4) Costs of the construction of public works or
15    improvements, including any direct or indirect costs
16    relating to Green Globes or LEED certified construction
17    elements or construction elements with an equivalent
18    certification, except that on and after November 1, 1999,
19    redevelopment project costs shall not include the cost of
20    constructing a new municipal public building principally
21    used to provide offices, storage space, or conference
22    facilities or vehicle storage, maintenance, or repair for
23    administrative, public safety, or public works personnel
24    and that is not intended to replace an existing public
25    building as provided under paragraph (3) of subsection (q)
26    of Section 11-74.4-3 unless either (i) the construction of

 

 

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

 

 

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

 

 

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

 

 

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1            amount of property tax increment revenue produced
2            by those housing units that have received tax
3            increment finance assistance under this Act.
4            (B) For alternate method districts, flat grant
5        districts, and foundation districts with a district
6        average 1995-96 Per Capita Tuition Charge equal to or
7        more than $5,900, excluding any school district with a
8        population in excess of 1,000,000, by multiplying the
9        district's increase in attendance resulting from the
10        net increase in new students enrolled in that school
11        district who reside in housing units within the
12        redevelopment project area that have received
13        financial assistance through an agreement with the
14        municipality or because the municipality incurs the
15        cost of necessary infrastructure improvements within
16        the boundaries of the housing sites necessary for the
17        completion of that housing as authorized by this Act
18        since the designation of the redevelopment project
19        area by the most recently available per capita tuition
20        cost as defined in Section 10-20.12a of the School Code
21        less any increase in general state aid as defined in
22        Section 18-8.05 of the School Code or primary State aid
23        as defined in Section 18-8.15 of the School Code
24        attributable to these added new students subject to the
25        following annual limitations:
26                (i) for unit school districts, no more than 40%

 

 

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

 

 

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1            schools by the municipality or developer; and
2                (iii) the amount reimbursed may not affect
3            amounts otherwise obligated by the terms of any
4            bonds, notes, or other funding instruments, or the
5            terms of any redevelopment agreement.
6        Any school district seeking payment under this
7        paragraph (7.5) shall, after July 1 and before
8        September 30 of each year, provide the municipality
9        with reasonable evidence to support its claim for
10        reimbursement before the municipality shall be
11        required to approve or make the payment to the school
12        district. If the school district fails to provide the
13        information during this period in any year, it shall
14        forfeit any claim to reimbursement for that year.
15        School districts may adopt a resolution waiving the
16        right to all or a portion of the reimbursement
17        otherwise required by this paragraph (7.5). By
18        acceptance of this reimbursement the school district
19        waives the right to directly or indirectly set aside,
20        modify, or contest in any manner the establishment of
21        the redevelopment project area or projects;
22        (7.7) For redevelopment project areas designated (or
23    redevelopment project areas amended to add or increase the
24    number of tax-increment-financing assisted housing units)
25    on or after January 1, 2005 (the effective date of Public
26    Act 93-961), a public library district's increased costs

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1taxes as certified by the Department of Revenue and paid under
2those Acts by retailers and servicemen on transactions at
3places of business located within the State Sales Tax Boundary
4during the base year which shall be the calendar year
5immediately prior to the year in which the municipality adopted
6tax increment allocation financing, less 3.0% of such amounts
7generated under the Retailers' Occupation Tax Act, Use Tax Act
8and Service Use Tax Act and the Service Occupation Tax Act,
9which sum shall be appropriated to the Department of Revenue to
10cover its costs of administering and enforcing this Section.
11For purposes of computing the aggregate amount of such taxes
12for base years occurring prior to 1985, the Department of
13Revenue shall compute the Initial Sales Tax Amount for such
14taxes and deduct therefrom an amount equal to 4% of the
15aggregate amount of taxes per year for each year the base year
16is prior to 1985, but not to exceed a total deduction of 12%.
17The amount so determined shall be known as the "Adjusted
18Initial Sales Tax Amount". For purposes of determining the
19State Sales Tax Increment the Department of Revenue shall for
20each period subtract from the tax amounts received from
21retailers and servicemen on transactions located in the State
22Sales Tax Boundary, the certified Initial Sales Tax Amounts,
23Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
24Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
25the Service Use Tax Act and the Service Occupation Tax Act. For
26the State Fiscal Year 1989 this calculation shall be made by

 

 

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

 

 

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1fire protection, river conservancy, tuberculosis sanitarium
2and any other municipal corporations or districts with the
3power to levy taxes.
4    (u) "Taxing districts' capital costs" means those costs of
5taxing districts for capital improvements that are found by the
6municipal corporate authorities to be necessary and directly
7result from the redevelopment project.
8    (v) As used in subsection (a) of Section 11-74.4-3 of this
9Act, "vacant land" means any parcel or combination of parcels
10of real property without industrial, commercial, and
11residential buildings which has not been used for commercial
12agricultural purposes within 5 years prior to the designation
13of the redevelopment project area, unless the parcel is
14included in an industrial park conservation area or the parcel
15has been subdivided; provided that if the parcel was part of a
16larger tract that has been divided into 3 or more smaller
17tracts that were accepted for recording during the period from
181950 to 1990, then the parcel shall be deemed to have been
19subdivided, and all proceedings and actions of the municipality
20taken in that connection with respect to any previously
21approved or designated redevelopment project area or amended
22redevelopment project area are hereby validated and hereby
23declared to be legally sufficient for all purposes of this Act.
24For purposes of this Section and only for land subject to the
25subdivision requirements of the Plat Act, land is subdivided
26when the original plat of the proposed Redevelopment Project

 

 

09800SB0016sam003- 82 -LRB098 04277 NHT 59435 a

1Area or relevant portion thereof has been properly certified,
2acknowledged, approved, and recorded or filed in accordance
3with the Plat Act and a preliminary plat, if any, for any
4subsequent phases of the proposed Redevelopment Project Area or
5relevant portion thereof has been properly approved and filed
6in accordance with the applicable ordinance of the
7municipality.
8    (w) "Annual Total Increment" means the sum of each
9municipality's annual Net Sales Tax Increment and each
10municipality's annual Net Utility Tax Increment. The ratio of
11the Annual Total Increment of each municipality to the Annual
12Total Increment for all municipalities, as most recently
13calculated by the Department, shall determine the proportional
14shares of the Illinois Tax Increment Fund to be distributed to
15each municipality.
16    (x) "LEED certified" means any certification level of
17construction elements by a qualified Leadership in Energy and
18Environmental Design Accredited Professional as determined by
19the U.S. Green Building Council.
20    (y) "Green Globes certified" means any certification level
21of construction elements by a qualified Green Globes
22Professional as determined by the Green Building Initiative.
23(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
2496-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
251-1-12.)
 

 

 

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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,
26block, tract or parcel of real property in the redevelopment

 

 

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1project area shall be allocated to and when collected shall be
2paid by the county collector to the respective affected taxing
3districts in the manner required by law in the absence of the
4adoption of tax increment allocation financing.
5    (b) Except from a tax levied by a township to retire bonds
6issued to satisfy court-ordered damages, that portion, if any,
7of such taxes which is attributable to the increase in the
8current equalized assessed valuation of each taxable lot,
9block, tract or parcel of real property in the redevelopment
10project area over and above the initial equalized assessed
11value of each property in the project area shall be allocated
12to and when collected shall be paid to the municipal treasurer
13who shall deposit said taxes into a special fund called the
14special tax allocation fund of the municipality for the purpose
15of paying redevelopment project costs and obligations incurred
16in the payment thereof. In any county with a population of
173,000,000 or more that has adopted a procedure for collecting
18taxes that provides for one or more of the installments of the
19taxes to be billed and collected on an estimated basis, the
20municipal treasurer shall be paid for deposit in the special
21tax allocation fund of the municipality, from the taxes
22collected from estimated bills issued for property in the
23redevelopment project area, the difference between the amount
24actually collected from each taxable lot, block, tract, or
25parcel of real property within the redevelopment project area
26and an amount determined by multiplying the rate at which taxes

 

 

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1were last extended against the taxable lot, block, track, or
2parcel of real property in the manner provided in subsection
3(c) of Section 11-74.4-9 by the initial equalized assessed
4value of the property divided by the number of installments in
5which real estate taxes are billed and collected within the
6county; provided that the payments on or before December 31,
71999 to a municipal treasurer shall be made only if each of the
8following conditions are met:
9        (1) The total equalized assessed value of the
10    redevelopment project area as last determined was not less
11    than 175% of the total initial equalized assessed value.
12        (2) Not more than 50% of the total equalized assessed
13    value of the redevelopment project area as last determined
14    is attributable to a piece of property assigned a single
15    real estate index number.
16        (3) The municipal clerk has certified to the county
17    clerk that the municipality has issued its obligations to
18    which there has been pledged the incremental property taxes
19    of the redevelopment project area or taxes levied and
20    collected on any or all property in the municipality or the
21    full faith and credit of the municipality to pay or secure
22    payment for all or a portion of the redevelopment project
23    costs. The certification shall be filed annually no later
24    than September 1 for the estimated taxes to be distributed
25    in the following year; however, for the year 1992 the
26    certification shall be made at any time on or before March

 

 

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

 

 

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

 

 

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

 

 

09800SB0016sam003- 89 -LRB098 04277 NHT 59435 a

1    a special fund called the special tax allocation fund of
2    the municipality for the purpose of paying redevelopment
3    project costs and obligations incurred in the payment
4    thereof.
5    The municipality may pledge in the ordinance the funds in
6and to be deposited in the special tax allocation fund for the
7payment of such costs and obligations. No part of the current
8equalized assessed valuation of each property in the
9redevelopment project area attributable to any increase above
10the total initial equalized assessed value, or the total
11initial equalized assessed value as adjusted, of such
12properties shall be used in calculating the general State
13school aid formula, provided for in Section 18-8 of the School
14Code, or the primary State aid formula, provided for in Section
1518-8.15 of the School Code, until such time as all
16redevelopment project costs have been paid as provided for in
17this Section.
18    Whenever a municipality issues bonds for the purpose of
19financing redevelopment project costs, such municipality may
20provide by ordinance for the appointment of a trustee, which
21may be any trust company within the State, and for the
22establishment of such funds or accounts to be maintained by
23such trustee as the municipality shall deem necessary to
24provide for the security and payment of the bonds. If such
25municipality provides for the appointment of a trustee, such
26trustee shall be considered the assignee of any payments

 

 

09800SB0016sam003- 90 -LRB098 04277 NHT 59435 a

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

 

 

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1affected districts of real property taxes from real property in
2the redevelopment project area.
3    Upon the payment of all redevelopment project costs, the
4retirement of obligations, the distribution of any excess
5monies pursuant to this Section, and final closing of the books
6and records of the redevelopment project area, the municipality
7shall adopt an ordinance dissolving the special tax allocation
8fund for the redevelopment project area and terminating the
9designation of the redevelopment project area as a
10redevelopment project area. Title to real or personal property
11and public improvements acquired by or for the municipality as
12a result of the redevelopment project and plan shall vest in
13the municipality when acquired and shall continue to be held by
14the municipality after the redevelopment project area has been
15terminated. Municipalities shall notify affected taxing
16districts prior to November 1 if the redevelopment project area
17is to be terminated by December 31 of that same year. If a
18municipality extends estimated dates of completion of a
19redevelopment project and retirement of obligations to finance
20a redevelopment project, as allowed by this amendatory Act of
211993, that extension shall not extend the property tax
22increment allocation financing authorized by this Section.
23Thereafter the rates of the taxing districts shall be extended
24and taxes levied, collected and distributed in the manner
25applicable in the absence of the adoption of tax increment
26allocation financing.

 

 

09800SB0016sam003- 92 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

09800SB0016sam003- 94 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 95 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 96 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 97 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 98 -LRB098 04277 NHT 59435 a

1School Aid Formula, provided for in Section 18-8 of the School
2Code, or the primary State aid formula, provided for in Section
318-8.15 of the School Code, until all redevelopment project
4costs have been paid as provided for in this Section.
5    Whenever a municipality issues bonds for the purpose of
6financing redevelopment project costs, that municipality may
7provide by ordinance for the appointment of a trustee, which
8may be any trust company within the State, and for the
9establishment of any funds or accounts to be maintained by that
10trustee, as the municipality deems necessary to provide for the
11security and payment of the bonds. If the municipality provides
12for the appointment of a trustee, the trustee shall be
13considered the assignee of any payments assigned by the
14municipality under that ordinance and this Section. Any amounts
15paid to the trustee as assignee shall be deposited into the
16funds or accounts established under the trust agreement, and
17shall be held by the trustee in trust for the benefit of the
18holders of the bonds. The holders of those bonds shall have a
19lien on and a security interest in those funds or accounts
20while the bonds remain outstanding and unpaid. Upon retirement
21of the bonds, the trustee shall pay over any excess amounts
22held to the municipality for deposit in the special tax
23allocation fund.
24    When the redevelopment projects costs, including without
25limitation all municipal obligations financing redevelopment
26project costs incurred under this Law, have been paid, all

 

 

09800SB0016sam003- 99 -LRB098 04277 NHT 59435 a

1surplus funds then remaining in the special tax allocation fund
2shall be distributed by being paid by the municipal treasurer
3to the municipality and the county collector; first to the
4municipality in direct proportion to the tax incremental
5revenue received from the municipality, but not to exceed the
6total incremental revenue received from the municipality,
7minus any annual surplus distribution of incremental revenue
8previously made. Any remaining funds shall be paid to the
9county collector who shall immediately distribute that payment
10to the taxing districts in the redevelopment project area in
11the same manner and proportion as the most recent distribution
12by the county collector to the affected districts of real
13property taxes from real property situated in the redevelopment
14project area.
15    Upon the payment of all redevelopment project costs,
16retirement of obligations and the distribution of any excess
17moneys under this Section, the municipality shall adopt an
18ordinance dissolving the special tax allocation fund for the
19redevelopment project area and terminating the designation of
20the redevelopment project area as a redevelopment project area.
21Thereafter the tax levies of taxing districts shall be
22extended, collected and distributed in the same manner
23applicable before the adoption of tax increment allocation
24financing. Municipality shall notify affected taxing districts
25prior to November if the redevelopment project area is to be
26terminated by December 31 of that same year.

 

 

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1    Nothing in this Section shall be construed as relieving
2property in a redevelopment project area from being assessed as
3provided in the Property Tax Code or as relieving owners of
4that property from paying a uniform rate of taxes, as required
5by Section 4 of Article IX of the Illinois Constitution.
6(Source: P.A. 91-474, eff. 11-1-99.)
 
7    Section 940. The Economic Development Project Area Tax
8Increment Allocation Act of 1995 is amended by changing Section
950 as follows:
 
10    (65 ILCS 110/50)
11    Sec. 50. Special tax allocation fund.
12    (a) If a county clerk has certified the "total initial
13equalized assessed value" of the taxable real property within
14an economic development project area in the manner provided in
15Section 45, each year after the date of the certification by
16the county clerk of the "total initial equalized assessed
17value", until economic development project costs and all
18municipal obligations financing economic development project
19costs have been paid, the ad valorem taxes, if any, arising
20from the levies upon the taxable real property in the economic
21development project area by taxing districts and tax rates
22determined in the manner provided in subsection (b) of Section
2345 shall be divided as follows:
24        (1) That portion of the taxes levied upon each taxable

 

 

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

 

 

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1current equalized assessed valuation of each property in the
2economic development project area attributable to any increase
3above the total initial equalized assessed value of those
4properties shall be used in calculating the general State
5school aid formula under Section 18-8 of the School Code or the
6primary State aid formula under Section 18-8.15 of the School
7Code, until all economic development projects costs have been
8paid as provided for in this Section.
9    (c) When the economic development projects costs,
10including without limitation all municipal obligations
11financing economic development project costs incurred under
12this Act, have been paid, all surplus monies then remaining in
13the special tax allocation fund shall be distributed by being
14paid by the municipal treasurer to the county collector, who
15shall immediately pay the monies to the taxing districts having
16taxable property in the economic development project area in
17the same manner and proportion as the most recent distribution
18by the county collector to those taxing districts of real
19property taxes from real property in the economic development
20project area.
21    (d) Upon the payment of all economic development project
22costs, retirement of obligations, and distribution of any
23excess monies under this Section and not later than 23 years
24from the date of the adoption of the ordinance establishing the
25economic development project area, the municipality shall
26adopt an ordinance dissolving the special tax allocation fund

 

 

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1for the economic development project area and terminating the
2designation of the economic development project area as an
3economic development project area. Thereafter, the rates of the
4taxing districts shall be extended and taxes shall be levied,
5collected, and distributed in the manner applicable in the
6absence of the adoption of tax increment allocation financing.
7    (e) Nothing in this Section shall be construed as relieving
8property in the economic development project areas from being
9assessed as provided in the Property Tax Code or as relieving
10owners or lessees of that property from paying a uniform rate
11of taxes as required by Section 4 of Article IX of the Illinois
12Constitution.
13(Source: P.A. 98-463, eff. 8-16-13.)
 
14    Section 945. The School Code is amended by changing
15Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
161F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
172-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-19, 10-22.5a,
1810-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50,
1913B-50.10, 13B-50.15, 14-7.02, 14-7.02b, 14-7.03, 14-13.01,
2014C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
2118-8.10, 18-9, 18-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5,
2234-2.3, 34-8.4, 34-18, 34-18.30, and 34-43.1 and by adding
23Sections 14-7.02c and 18-8.15 as follows:
 
24    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1sold by a school district or be legally binding upon or
2enforceable against a local board of education of a district
3certified to be in financial difficulty unless and until the
4financial plan required under this Section has been approved by
5the State Board of Education.
6    Any financial profile compiled and distributed by the State
7Board of Education in Fiscal Year 2009 or any fiscal year
8thereafter shall incorporate such adjustments as may be needed
9in the profile scores to reflect the financial effects of the
10inability or refusal of the State of Illinois to make timely
11disbursements of any general State aid, primary State aid, or
12mandated categorical aid payments due school districts or to
13fully reimburse school districts for mandated categorical
14programs pursuant to reimbursement formulas provided in this
15School Code.
16(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1797-429, eff. 8-16-11.)
 
18    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
19    Sec. 1B-5. When a petition for emergency financial
20assistance for a school district is allowed by the State Board
21under Section 1B-4, the State Superintendent shall within 10
22days thereafter appoint 3 members to serve at the State
23Superintendent's pleasure on a Financial Oversight Panel for
24the district. The State Superintendent shall designate one of
25the members of the Panel to serve as its Chairman. In the event

 

 

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

 

 

09800SB0016sam003- 110 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 111 -LRB098 04277 NHT 59435 a

1Oversight Panel shall be to exercise financial control over the
2board of education, and, when approved by the State Board and
3the State Superintendent of Education, to furnish financial
4assistance so that the board can provide public education
5within the board's jurisdiction while permitting the board to
6meet its obligations to its creditors and the holders of its
7notes and bonds. Except as expressly limited by this Article,
8the Panel shall have all powers necessary to meet its
9responsibilities and to carry out its purposes and the purposes
10of this Article, including, but not limited to, the following
11powers:
12    (a) to sue and be sued;
13    (b) to provide for its organization and internal
14management;
15    (c) to appoint a Financial Administrator to serve as the
16chief executive officer of the Panel. The Financial
17Administrator may be an individual, partnership, corporation,
18including an accounting firm, or other entity determined by the
19Panel to be qualified to serve; and to appoint other officers,
20agents, and employees of the Panel, define their duties and
21qualifications and fix their compensation and employee
22benefits;
23    (d) to approve the local board of education appointments to
24the positions of treasurer in a Class I county school unit and
25in each school district which forms a part of a Class II county
26school unit but which no longer is subject to the jurisdiction

 

 

09800SB0016sam003- 112 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

09800SB0016sam003- 114 -LRB098 04277 NHT 59435 a

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

 

 

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1following:
2    (a) to provide guidance and recommendations to the local
3board and officials of the school district in developing the
4district's financial plan and budget prior to board action;
5    (b) to direct the local board to reorganize its financial
6accounts, budgetary systems, and internal accounting and
7financial controls, in whatever manner the Panel deems
8appropriate to achieve greater financial responsibility and to
9reduce financial inefficiency, and to provide technical
10assistance to aid the district in accomplishing the
11reorganization;
12    (c) to make recommendations to the Financial Oversight
13Panel concerning the school district's financial plan and
14budget, and all other matters within the scope of the Panel's
15authority;
16    (d) to prepare and recommend to the Panel a proposal for
17emergency State financial assistance for the district,
18including recommended terms and conditions of repayment, and an
19operations budget for the Panel to be funded from the emergency
20assistance or from deductions from the district's general State
21aid or primary State aid;
22    (e) to require the local board to prepare and submit
23preliminary staffing and budgetary analyses annually prior to
24February 1 in such manner and form as the Financial
25Administrator shall prescribe; and
26    (f) subject to the direction of the Panel, to do all other

 

 

09800SB0016sam003- 116 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

09800SB0016sam003- 118 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 119 -LRB098 04277 NHT 59435 a

1The Panel shall establish and the Illinois Finance Authority
2shall approve the terms and conditions, including the schedule,
3of repayments. The schedule shall provide for repayments
4commencing July 1 of each year or upon each fiscal year's
5receipt of moneys from a tax levy for emergency financial
6assistance. Repayment shall be incorporated into the annual
7budget of the school district and may be made from any fund or
8funds of the district in which there are moneys available. An
9emergency financial assistance loan to the Panel or district
10shall not be considered part of the calculation of a district's
11debt for purposes of the limitation specified in Section 19-1
12of this Code. Default on repayment is subject to the Illinois
13Grant Funds Recovery Act. When moneys are repaid as provided
14herein they shall not be made available to the local board for
15further use as emergency financial assistance under this
16Article at any time thereafter. All repayments required to be
17made by a school district shall be received by the State Board
18and deposited in the School District Emergency Financial
19Assistance Fund.
20    In establishing the terms and conditions for the repayment
21obligation of the school district the Panel shall annually
22determine whether a separate local property tax levy is
23required. The board of any school district with a tax rate for
24educational purposes for the prior year of less than 120% of
25the maximum rate for educational purposes authorized by Section
2617-2 shall provide for a separate tax levy for emergency

 

 

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1financial assistance repayment purposes. Such tax levy shall
2not be subject to referendum approval. The amount of the levy
3shall be equal to the amount necessary to meet the annual
4repayment obligations of the district as established by the
5Panel, or 20% of the amount levied for educational purposes for
6the prior year, whichever is less. However, no district shall
7be required to levy the tax if the district's operating tax
8rate as determined under Section 18-8, or 18-8.05, or 18-8.15
9exceeds 200% of the district's tax rate for educational
10purposes for the prior year.
11(Source: P.A. 97-429, eff. 8-16-11.)
 
12    (105 ILCS 5/1C-1)
13    Sec. 1C-1. Purpose. The purpose of this Article is to
14permit greater flexibility and efficiency in the distribution
15and use of certain State funds available to local education
16agencies for the improvement of the quality of educational
17services pursuant to locally established priorities.
18    Through fiscal year 2014, this This Article does not apply
19to school districts having a population in excess of 500,000
20inhabitants.
21(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
2289-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
23    (105 ILCS 5/1C-2)
24    Sec. 1C-2. Block grants.

 

 

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

 

 

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1(Source: P.A. 95-793, eff. 1-1-09; 96-423, eff. 8-13-09.)
 
2    (105 ILCS 5/1D-1)
3    Sec. 1D-1. Block grant funding.
4    (a) For fiscal year 1996 through fiscal year 2014 and each
5fiscal year thereafter, the State Board of Education shall
6award to a school district having a population exceeding
7500,000 inhabitants a general education block grant and an
8educational services block grant, determined as provided in
9this Section, in lieu of distributing to the district separate
10State funding for the programs described in subsections (b) and
11(c). The provisions of this Section, however, do not apply to
12any federal funds that the district is entitled to receive. In
13accordance with Section 2-3.32, all block grants are subject to
14an audit. Therefore, block grant receipts and block grant
15expenditures shall be recorded to the appropriate fund code for
16the designated block grant.
17    (b) The general education block grant shall include the
18following programs: REI Initiative, Summer Bridges, Preschool
19At Risk, K-6 Comprehensive Arts, School Improvement Support,
20Urban Education, Scientific Literacy, Substance Abuse
21Prevention, Second Language Planning, Staff Development,
22Outcomes and Assessment, K-6 Reading Improvement, 7-12
23Continued Reading Improvement, Truants' Optional Education,
24Hispanic Programs, Agriculture Education, Parental Education,
25Prevention Initiative, Report Cards, and Criminal Background

 

 

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

 

 

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1services provided or costs incurred in the prior fiscal year,
2calculated in each case as provided in this Section. Nothing in
3this Section shall change the nature of payments for any
4program that, apart from this Section, would be or, prior to
5adoption or amendment of this Section, was on the basis of a
6payment in a fiscal year in respect of services provided or
7costs incurred in the prior fiscal year, calculated in each
8case as provided in this Section.
9    (d) For fiscal year 1996 through fiscal year 2014 and each
10fiscal year thereafter, the amount of the district's block
11grants shall be determined as follows: (i) with respect to each
12program that is included within each block grant, the district
13shall receive an amount equal to the same percentage of the
14current fiscal year appropriation made for that program as the
15percentage of the appropriation received by the district from
16the 1995 fiscal year appropriation made for that program, and
17(ii) the total amount that is due the district under the block
18grant shall be the aggregate of the amounts that the district
19is entitled to receive for the fiscal year with respect to each
20program that is included within the block grant that the State
21Board of Education shall award the district under this Section
22for that fiscal year. In the case of the Summer Bridges
23program, the amount of the district's block grant shall be
24equal to 44% of the amount of the current fiscal year
25appropriation made for that program.
26    (e) The district is not required to file any application or

 

 

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

 

 

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

 

 

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1subsection (h) and must specify the funding program to which
2the funds are to be treated as received in connection
3therewith. This resolution is controlling as to the
4classification of funds referenced therein. A certified copy of
5the resolution must be sent to the State Superintendent of
6Education. The resolution shall still take effect even though a
7copy of the resolution has not been sent to the State
8Superintendent of Education in a timely manner. No
9classification under this subsection (h) by a district shall
10affect the total amount or timing of money the district is
11entitled to receive under this Code. No classification under
12this subsection (h) by a district shall in any way relieve the
13district from or affect any requirements that otherwise would
14apply with respect to the block grant as provided in this
15Section, including any accounting of funds by source, reporting
16expenditures by original source and purpose, reporting
17requirements, or requirements of provision of services.
18(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1997-813, eff. 7-13-12.)
 
20    (105 ILCS 5/1E-20)
21    (This Section scheduled to be repealed in accordance with
22105 ILCS 5/1E-165)
23    Sec. 1E-20. Members of Authority; meetings.
24    (a) When a petition for a School Finance Authority is
25allowed by the State Board under Section 1E-15 of this Code,

 

 

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1the State Superintendent shall within 10 days thereafter
2appoint 5 members to serve on a School Finance Authority for
3the district. Of the initial members, 2 shall be appointed to
4serve a term of 2 years and 3 shall be appointed to serve a term
5of 3 years. Thereafter, each member shall serve for a term of 3
6years and until his or her successor has been appointed. The
7State Superintendent shall designate one of the members of the
8Authority to serve as its Chairperson. In the event of vacancy
9or resignation, the State Superintendent shall, within 10 days
10after receiving notice, appoint a successor to serve out that
11member's term. The State Superintendent may remove a member for
12incompetence, malfeasance, neglect of duty, or other just
13cause.
14    Members of the Authority shall be selected primarily on the
15basis of their experience and education in financial
16management, with consideration given to persons knowledgeable
17in education finance. Two members of the Authority shall be
18residents of the school district that the Authority serves. A
19member of the Authority may not be a member of the district's
20school board or an employee of the district nor may a member
21have a direct financial interest in the district.
22    Authority members shall serve without compensation, but
23may be reimbursed by the State Board for travel and other
24necessary expenses incurred in the performance of their
25official duties. Unless paid from bonds issued under Section
261E-65 of this Code, the amount reimbursed members for their

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    services; and
2        (4) such other requirements as the State Board of
3    Education deems necessary to provide for a uniform and
4    transparent system of accounting at the school level.
5(Source: P.A. 81-1508.)
 
6    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
7    Sec. 2-3.33. Recomputation of claims. To recompute within
83 years from the final date for filing of a claim any claim for
9reimbursement to any school district if the claim has been
10found to be incorrect and to adjust subsequent claims
11accordingly, and to recompute and adjust any such claims within
126 years from the final date for filing when there has been an
13adverse court or administrative agency decision on the merits
14affecting the tax revenues of the school district. However, no
15such adjustment shall be made regarding equalized assessed
16valuation unless the district's equalized assessed valuation
17is changed by greater than $250,000 or 2%. Any adjustments for
18claims recomputed for the 2013-2014 school year and prior
19school years shall be applied to the apportionment of primary
20State financial aid in Section 18-8.15 of this Code beginning
21in the 2014-2015 school year and thereafter.
22    Except in the case of an adverse court or administrative
23agency decision, no recomputation of a State aid claim shall be
24made pursuant to this Section as a result of a reduction in the
25assessed valuation of a school district from the assessed

 

 

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1valuation of the district reported to the State Board of
2Education by the Department of Revenue under Section 18-8.05 or
318-8.15 of this Code unless the requirements of Section 16-15
4of the Property Tax Code and Section 2-3.84 of this Code are
5complied with in all respects.
6    This paragraph applies to all requests for recomputation of
7a general State aid or primary State aid claim received after
8June 30, 2003. In recomputing a general State aid or primary
9State aid claim that was originally calculated using an
10extension limitation equalized assessed valuation under
11paragraph (3) of subsection (G) of Section 18-8.05 of this Code
12or paragraph (3) of subsection (h) of Section 18-8.15 of this
13Code, a qualifying reduction in equalized assessed valuation
14shall be deducted from the extension limitation equalized
15assessed valuation that was used in calculating the original
16claim.
17    From the total amount of general State aid or primary State
18aid to be provided to districts, adjustments as a result of
19recomputation under this Section together with adjustments
20under Section 2-3.84 must not exceed $25 million, in the
21aggregate for all districts under both Sections combined, of
22the general State aid or primary State aid appropriation in any
23fiscal year; if necessary, amounts shall be prorated among
24districts. If it is necessary to prorate claims under this
25paragraph, then that portion of each prorated claim that is
26approved but not paid in the current fiscal year may be

 

 

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1resubmitted as a valid claim in the following fiscal year.
2(Source: P.A. 93-845, eff. 7-30-04.)
 
3    (105 ILCS 5/2-3.51.5)
4    Sec. 2-3.51.5. School Safety and Educational Improvement
5Block Grant Program. To improve the level of education and
6safety of students from kindergarten through grade 12 in school
7districts and State-recognized, non-public schools. The State
8Board of Education is authorized to fund a School Safety and
9Educational Improvement Block Grant Program.
10    (1) For school districts, the program shall provide funding
11for school safety, textbooks and software, electronic
12textbooks and the technological equipment necessary to gain
13access to and use electronic textbooks, teacher training and
14curriculum development, school improvements, remediation
15programs under subsection (a) of Section 2-3.64, school report
16cards under Section 10-17a, and criminal history records checks
17under Sections 10-21.9 and 34-18.5. For State-recognized,
18non-public schools, the program shall provide funding for
19secular textbooks and software, criminal history records
20checks, and health and safety mandates to the extent that the
21funds are expended for purely secular purposes. A school
22district or laboratory school as defined in Section 18-8, or
2318-8.05, or 18-8.15 is not required to file an application in
24order to receive the categorical funding to which it is
25entitled under this Section. Funds for the School Safety and

 

 

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

 

 

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

 

 

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

 

 

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1Pathways through Education (IHOPE) Program. The State Board of
2Education shall implement and administer the IHOPE Program. The
3goal of the IHOPE Program is to develop a comprehensive system
4in this State to re-enroll significant numbers of high school
5dropouts in programs that will enable them to earn their high
6school diploma.
7    (b) The IHOPE Program shall award grants, subject to
8appropriation for this purpose, to educational service regions
9and a school district organized under Article 34 of this Code
10from appropriated funds to assist in establishing
11instructional programs and other services designed to
12re-enroll high school dropouts. From any funds appropriated for
13the IHOPE Program, the State Board of Education may use up to
145% for administrative costs, including the performance of a
15program evaluation and the hiring of staff to implement and
16administer the program.
17    The IHOPE Program shall provide incentive grant funds for
18regional offices of education and a school district organized
19under Article 34 of this Code to develop partnerships with
20school districts, public community colleges, and community
21groups to build comprehensive plans to re-enroll high school
22dropouts in their regions or districts.
23    Programs funded through the IHOPE Program shall allow high
24school dropouts, up to and including age 21 notwithstanding
25Section 26-2 of this Code, to re-enroll in an educational
26program in conformance with rules adopted by the State Board of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1aggregate adjustments to assessments made by the State Property
2Tax Appeal Board or Cook County Board of Appeals, as reported
3pursuant to Section 16-15 of the Property Tax Code or Section
4129.1 of the Revenue Act of 1939 by the Department of Revenue,
5from the equalized assessed valuation that is otherwise to be
6utilized in the initial calculation.
7    From the total amount of general State aid or primary State
8aid to be provided to districts, adjustments under this Section
9together with adjustments as a result of recomputation under
10Section 2-3.33 must not exceed $25 million, in the aggregate
11for all districts under both Sections combined, of the general
12State aid or primary State aid appropriation in any fiscal
13year; if necessary, amounts shall be prorated among districts.
14If it is necessary to prorate claims under this paragraph, then
15that portion of each prorated claim that is approved but not
16paid in the current fiscal year may be resubmitted as a valid
17claim in the following fiscal year.
18(Source: P.A. 93-845, eff. 7-30-04.)
 
19    (105 ILCS 5/2-3.109a)
20    Sec. 2-3.109a. Laboratory schools grant eligibility. A
21laboratory school as defined in Section 18-8 or 18-8.15 may
22apply for and be eligible to receive, subject to the same
23restrictions applicable to school districts, any grant
24administered by the State Board of Education that is available
25for school districts.

 

 

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

 

 

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

 

 

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

 

 

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1for both the district gaining territory and the district losing
2territory. Copies of any intergovernmental agreements between
3the district gaining territory and the district losing
4territory detailing any transfer of fund balances and staff
5must also be submitted. In all instances of changes in
6boundaries, the district losing territory shall not count the
7average daily attendance of pupils living in the territory
8during the year preceding the effective date of the boundary
9change in its claim for reimbursement under Section 18-8 or
1018-8.15 for the school year following the effective date of the
11change in boundaries and the district receiving the territory
12shall count the average daily attendance of pupils living in
13the territory during the year preceding the effective date of
14the boundary change in its claim for reimbursement under
15Section 18-8 or 18-8.15 for the school year following the
16effective date of the change in boundaries. The changes to this
17Section made by this amendatory Act of the 95th General
18Assembly are intended to be retroactive and applicable to any
19annexation taking effect on or after July 1, 2004.
20(Source: P.A. 95-707, eff. 1-11-08.)
 
21    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
22    Sec. 10-19. Length of school term - experimental programs.
23Each school board shall annually prepare a calendar for the
24school term, specifying the opening and closing dates and
25providing a minimum term of at least 185 days to insure 176

 

 

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1days of actual pupil attendance, computable under Section
218-8.05 or 18-8.15, except that for the 1980-1981 school year
3only 175 days of actual pupil attendance shall be required
4because of the closing of schools pursuant to Section 24-2 on
5January 29, 1981 upon the appointment by the President of that
6day as a day of thanksgiving for the freedom of the Americans
7who had been held hostage in Iran. Any days allowed by law for
8teachers' institutes institute but not used as such or used as
9parental institutes as provided in Section 10-22.18d shall
10increase the minimum term by the school days not so used.
11Except as provided in Section 10-19.1, the board may not extend
12the school term beyond such closing date unless that extension
13of term is necessary to provide the minimum number of
14computable days. In case of such necessary extension school
15employees shall be paid for such additional time on the basis
16of their regular contracts. A school board may specify a
17closing date earlier than that set on the annual calendar when
18the schools of the district have provided the minimum number of
19computable days under this Section. Nothing in this Section
20prevents the board from employing superintendents of schools,
21principals and other nonteaching personnel for a period of 12
22months, or in the case of superintendents for a period in
23accordance with Section 10-23.8, or prevents the board from
24employing other personnel before or after the regular school
25term with payment of salary proportionate to that received for
26comparable work during the school term.

 

 

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1    A school board may make such changes in its calendar for
2the school term as may be required by any changes in the legal
3school holidays prescribed in Section 24-2. A school board may
4make changes in its calendar for the school term as may be
5necessary to reflect the utilization of teachers' institute
6days as parental institute days as provided in Section
710-22.18d.
8    The calendar for the school term and any changes must be
9submitted to and approved by the regional superintendent of
10schools before the calendar or changes may take effect.
11    With the prior approval of the State Board of Education and
12subject to review by the State Board of Education every 3
13years, any school board may, by resolution of its board and in
14agreement with affected exclusive collective bargaining
15agents, establish experimental educational programs, including
16but not limited to programs for self-directed learning or
17outside of formal class periods, which programs when so
18approved shall be considered to comply with the requirements of
19this Section as respects numbers of days of actual pupil
20attendance and with the other requirements of this Act as
21respects courses of instruction.
22(Source: P.A. 93-1036, eff. 9-14-04; revised 11-12-13.)
 
23    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
24    Sec. 10-22.5a. Attendance by dependents of United States
25military personnel, foreign exchange students, and certain

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1annexation, then a supplementary payment equal to the
2difference shall be made and allocated between or among the
3annexing districts, as constituted upon the annexation, for the
4first 4 years of their existence. The total difference payment
5shall be allocated between or among the annexing districts in
6the same ratio as the pupil enrollment from that portion of the
7annexed district or districts that is annexed to each annexing
8district bears to the total pupil enrollment from the entire
9annexed district or districts, as such pupil enrollment is
10determined for the school year last ending prior to the date
11when the change of boundaries attributable to the annexation
12becomes effective for all purposes. The amount of the total
13difference payment and the amount thereof to be allocated to
14the annexing districts shall be computed by the State Board of
15Education on the basis of pupil enrollment and other data that
16shall be certified to the State Board of Education, on forms
17that it shall provide for that purpose, by the regional
18superintendent of schools for each educational service region
19in which the annexing and annexed districts are located.
20    (4) For a school district conversion, as defined in Section
2111E-15 of this Code, or a multi-unit conversion, as defined in
22subsection (b) of Section 11E-30 of this Code, if in their
23first year of existence the newly created elementary districts
24and the newly created high school district, from a school
25district conversion, or the newly created elementary district
26or districts and newly created combined high school - unit

 

 

09800SB0016sam003- 179 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 180 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1this paragraph (6.5) is complete.
2    (7) Claims for financial assistance under this subsection
3(a) may not be recomputed except as expressly provided under
4Section 18-8.05 or 18-8.15 of this Code.
5    (8) Any supplementary payment made under this subsection
6(a) must be treated as separate from all other payments made
7pursuant to Section 18-8.05 or 18-8.15 of this Code.
8    (b)(1) After the formation of a combined school district,
9as defined in Section 11E-20 of this Code, or a unit district,
10as defined in Section 11E-25 of this Code, a computation shall
11be made to determine the difference between the salaries
12effective in each of the previously existing districts on June
1330, prior to the creation of the new district. For the first 4
14years after the formation of the new district, a supplementary
15State aid reimbursement shall be paid to the new district equal
16to the difference between the sum of the salaries earned by
17each of the certificated members of the new district, while
18employed in one of the previously existing districts during the
19year immediately preceding the formation of the new district,
20and the sum of the salaries those certificated members would
21have been paid during the year immediately prior to the
22formation of the new district if placed on the salary schedule
23of the previously existing district with the highest salary
24schedule.
25    (2) After the territory of one or more school districts is
26annexed by one or more other school districts as defined in

 

 

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

 

 

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

 

 

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

 

 

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1        (E) If the effective date for the elementary opt-in is
2    5 years after the effective date for the optional
3    elementary unit district, the optional elementary unit
4    district is not eligible for any additional incentives due
5    to the elementary opt-in.
6    (5.5) After the formation of a cooperative high school by 2
7or more school districts under Section 10-22.22c of this Code,
8a computation shall be made to determine the difference between
9the salaries effective in each of the previously existing high
10schools on June 30 prior to the formation of the cooperative
11high school. For the first 4 years after the formation of the
12cooperative high school, a supplementary State aid
13reimbursement shall be paid to the cooperative high school
14equal to the difference between the sum of the salaries earned
15by each of the certificated members of the cooperative high
16school while employed in one of the previously existing high
17schools during the year immediately preceding the formation of
18the cooperative high school and the sum of the salaries those
19certificated members would have been paid during the year
20immediately prior to the formation of the cooperative high
21school if placed on the salary schedule of the previously
22existing high school with the highest salary schedule.
23    (5.10) After the annexation of territory detached from
24another school district whereby the enrollment of the annexing
25district increases by 90% or more as a result of the
26annexation, a computation shall be made to determine the

 

 

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1difference between the salaries effective in the district
2gaining territory and the district losing territory as they
3each were constituted on June 30 preceding the date when the
4change of boundaries attributable to the annexation became
5effective for all purposes as determined under Section 7-9 of
6this Code. For the first 4 years after the annexation, a
7supplementary State aid reimbursement shall be paid to the
8annexing district equal to the difference between the sum of
9the salaries earned by each of the certificated members of the
10annexing district as constituted after the annexation while
11employed in the district gaining territory or the district
12losing territory during the year immediately preceding the
13annexation and the sum of the salaries those certificated
14members would have been paid during such immediately preceding
15year if placed on the salary schedule of whichever of the
16district gaining territory or district losing territory had the
17highest salary schedule during the immediately preceding year.
18To be eligible for supplementary State aid reimbursement under
19this Section, the intergovernmental agreement to be submitted
20pursuant to Section 7-14A of this Code must show that staff
21members were transferred from the control of the district
22losing territory to the control of the district gaining
23territory in the annexation. The changes to this Section made
24by Public Act 95-707 are intended to be retroactive and
25applicable to any annexation taking effect on or after July 1,
262004. For annexations that are eligible for payments under this

 

 

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1paragraph (5.10) and that are effective on or after July 1,
22004, but before January 11, 2008 (the effective date of Public
3Act 95-707), the first required yearly payment under this
4paragraph (5.10) shall be paid in the fiscal year of January
511, 2008 (the effective date of Public Act 95-707). Subsequent
6required yearly payments shall be paid in subsequent fiscal
7years until the payment obligation under this paragraph (5.10)
8is complete.
9    (5.15) After the deactivation of a school facility in
10accordance with Section 10-22.22b of this Code, a computation
11shall be made to determine the difference between the salaries
12effective in the sending school district and each receiving
13school district on June 30 prior to the deactivation of the
14school facility. For the lesser of the first 4 years after the
15deactivation of the school facility or the length of the
16deactivation agreement, including any renewals of the original
17deactivation agreement, a supplementary State aid
18reimbursement shall be paid to each receiving district equal to
19the difference between the sum of the salaries earned by each
20of the certificated members transferred to that receiving
21district as a result of the deactivation while employed in the
22sending district during the year immediately preceding the
23deactivation and the sum of the salaries those certificated
24members would have been paid during the year immediately
25preceding the deactivation if placed on the salary schedule of
26the sending or receiving district with the highest salary

 

 

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1schedule.
2    (6) The supplementary State aid reimbursement under this
3subsection (b) shall be treated as separate from all other
4payments made pursuant to Section 18-8.05 of this Code. In the
5case of the formation of a new district or cooperative high
6school or a deactivation, reimbursement shall begin during the
7first year of operation of the new district or cooperative high
8school or the first year of the deactivation, and in the case
9of an annexation of the territory of one or more school
10districts by one or more other school districts or the
11annexation of territory detached from a school district whereby
12the enrollment of the annexing district increases by 90% or
13more as a result of the annexation, reimbursement shall begin
14during the first year when the change in boundaries
15attributable to the annexation becomes effective for all
16purposes as determined pursuant to Section 7-9 of this Code,
17except that for an annexation of territory detached from a
18school district that is effective on or after July 1, 2004, but
19before January 11, 2008 (the effective date of Public Act
2095-707), whereby the enrollment of the annexing district
21increases by 90% or more as a result of the annexation,
22reimbursement shall begin during the fiscal year of January 11,
232008 (the effective date of Public Act 95-707). Each year that
24the new, annexing, or receiving district or cooperative high
25school, as the case may be, is entitled to receive
26reimbursement, the number of eligible certified members who are

 

 

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

 

 

09800SB0016sam003- 194 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

09800SB0016sam003- 196 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

09800SB0016sam003- 198 -LRB098 04277 NHT 59435 a

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

 

 

09800SB0016sam003- 199 -LRB098 04277 NHT 59435 a

1        (D) If the effective date for the elementary opt-in is
2    4 years after the effective date for the optional
3    elementary unit district, 25% of the calculated excess
4    shall be paid to the optional elementary unit district in
5    the first year after the effective date of the elementary
6    opt-in.
7        (E) If the effective date for the elementary opt-in is
8    5 years after the effective date for the optional
9    elementary unit district, the optional elementary unit
10    district is not eligible for any additional incentives due
11    to the elementary opt-in.
12    (6.5) For the first year after the annexation of territory
13detached from another school district whereby the enrollment of
14the annexing district increases by 90% or more as a result of
15the annexation, a computation shall be made totaling the
16audited fund balances of the district gaining territory and the
17audited fund balances of the district losing territory in the
18educational fund, working cash fund, operations and
19maintenance fund, and transportation fund for the year ending
20June 30 prior to the date that the change of boundaries
21attributable to the annexation is allowed by the affirmative
22decision of the regional board of school trustees under Section
237-6 of this Code, notwithstanding any action for administrative
24review of the decision. The annexing district as constituted
25after the annexation shall be paid supplementary State aid
26equal to the difference between the deficit of whichever

 

 

09800SB0016sam003- 200 -LRB098 04277 NHT 59435 a

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

 

 

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

 

 

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

 

 

 

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1districts, as defined in Article 7 of this Code, a
2supplementary State aid reimbursement shall be paid for the
3number of school years determined under the following table to
4each new or annexing district equal to the sum of $4,000 for
5each certified employee who is employed by the district on a
6full-time basis for the regular term of the school year:
 
7Reorganized District's RankReorganized District's Rank
8by type of district (unit,in Average Daily Attendance
9high school, elementary)By Quintile
10in Equalized Assessed Value
11Per Pupil by Quintile
123rd, 4th,
131st2ndor 5th
14QuintileQuintileQuintile
15    1st Quintile1 year1 year1 year
16    2nd Quintile1 year2 years2 years
17    3rd Quintile2 years3 years3 years
18    4th Quintile2 years3 years3 years
19    5th Quintile2 years3 years3 years
20The State Board of Education shall make a one-time calculation
21of a reorganized district's quintile ranks. The average daily
22attendance used in this calculation shall be the best 3 months'
23average daily attendance for the district's first year. The
24equalized assessed value per pupil shall be the district's real

 

 

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1property equalized assessed value used in calculating the
2district's first-year general State aid claim, under Section
318-8.05 of this Code, or first-year primary State aid claim,
4under Section 18-8.15 of this Code, as applicable, divided by
5the best 3 months' average daily attendance.
6    No annexing or resulting school district shall be entitled
7to supplementary State aid under this subsection (d) unless the
8district acquires at least 30% of the average daily attendance
9of the district from which the territory is being detached or
10divided.
11    If a district results from multiple reorganizations that
12would otherwise qualify the district for multiple payments
13under this subsection (d) in any year, then the district shall
14receive a single payment only for that year based solely on the
15most recent reorganization.
16    (2) For an elementary opt-in, as defined in subsection (d)
17of Section 11E-30 of this Code, the full-time certified staff
18incentive shall be computed in accordance with paragraph (1) of
19this subsection (d), equal to the sum of $4,000 for each
20certified employee of the elementary district that opts-in who
21is employed by the optional elementary unit district on a
22full-time basis for the regular term of the school year. The
23calculation from this paragraph (2) must be paid as follows:
24        (A) If the effective date for the elementary opt-in is
25    one year after the effective date for the optional
26    elementary unit district, 100% of the amount calculated in

 

 

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

 

 

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1    elementary unit district, 25% 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        (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    (2.5) Following the formation of a cooperative high school
14by 2 or more school districts under Section 10-22.22c of this
15Code, a supplementary State aid reimbursement shall be paid for
163 school years to the cooperative high school equal to the sum
17of $4,000 for each certified employee who is employed by the
18cooperative high school on a full-time basis for the regular
19term of any such school year. If a cooperative high school
20results from multiple agreements that would otherwise qualify
21the cooperative high school for multiple payments under this
22Section in any year, the cooperative high school shall receive
23a single payment for that year based solely on the most recent
24agreement.
25    (2.10) Following the annexation of territory detached from
26another school district whereby the enrollment of the annexing

 

 

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1district increases 90% or more as a result of the annexation, a
2supplementary State aid reimbursement shall be paid to the
3annexing district equal to the sum of $4,000 for each certified
4employee who is employed by the annexing district on a
5full-time basis and shall be calculated in accordance with
6subsection (a) of this Section. To be eligible for
7supplementary State aid reimbursement under this Section, the
8intergovernmental agreement to be submitted pursuant to
9Section 7-14A of this Code must show that certified staff
10members were transferred from the control of the district
11losing territory to the control of the district gaining
12territory in the annexation. The changes to this Section made
13by Public Act 95-707 are intended to be retroactive and
14applicable to any annexation taking effect on or after July 1,
152004. For annexations that are eligible for payments under this
16paragraph (2.10) and that are effective on or after July 1,
172004, but before January 11, 2008 (the effective date of Public
18Act 95-707), the first required yearly payment under this
19paragraph (2.10) shall be paid in the second fiscal year after
20January 11, 2008 (the effective date of Public Act 95-707). Any
21subsequent required yearly payments shall be paid in subsequent
22fiscal years until the payment obligation under this paragraph
23(2.10) is complete.
24    (2.15) Following the deactivation of a school facility in
25accordance with Section 10-22.22b of this Code, a supplementary
26State aid reimbursement shall be paid for the lesser of 3

 

 

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

 

 

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1or cooperative high school is entitled to reimbursement under
2this Section, together with the names, certificate numbers, and
3positions held by the certified employees.
4    (5) Upon certification by the State Board of Education to
5the State Comptroller of the amount of the supplementary State
6aid reimbursement to which a school district or cooperative
7high school is entitled under this subsection (d), the State
8Comptroller shall draw his or her warrant upon the State
9Treasurer for the payment thereof to the school district or
10cooperative high school and shall promptly transmit the payment
11to the school district or cooperative high school through the
12appropriate school treasurer.
13(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
1495-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
 
15    (105 ILCS 5/13A-8)
16    Sec. 13A-8. Funding.
17    (a) The State of Illinois shall provide funding for the
18alternative school programs within each educational service
19region and within the Chicago public school system by line item
20appropriation made to the State Board of Education for that
21purpose. This money, when appropriated, shall be provided to
22the regional superintendent and to the Chicago Board of
23Education, who shall establish a budget, including salaries,
24for their alternative school programs. Each program shall
25receive funding in the amount of $30,000 plus an amount based

 

 

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

 

 

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

 

 

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1including but not limited to federal grants, from any source
2for purposes directly related to the conduct and operation of
3the program.
4(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
589-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;
690-802, eff. 12-15-98.)
 
7    (105 ILCS 5/13B-20.20)
8    Sec. 13B-20.20. Enrollment in other programs. General
9Educational Development preparation programs are not eligible
10for funding under this Article. A student may enroll in a
11program approved under Section 18-8.05 or 18-8.15 of this Code,
12as appropriate, or attend both the alternative learning
13opportunities program and the regular school program to enhance
14student performance and facilitate on-time graduation.
15(Source: P.A. 92-42, eff. 1-1-02.)
 
16    (105 ILCS 5/13B-45)
17    Sec. 13B-45. Days and hours of attendance. An alternative
18learning opportunities program shall provide students with at
19least the minimum number of days of pupil attendance required
20under Section 10-19 of this Code and the minimum number of
21daily hours of school work required under Section 18-8.05 or
2218-8.15 of this Code, provided that the State Board may approve
23exceptions to these requirements if the program meets all of
24the following conditions:

 

 

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

 

 

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1    (105 ILCS 5/13B-50.15)
2    Sec. 13B-50.15. Level of funding. Approved alternative
3learning opportunities programs are entitled to claim general
4State aid or primary State aid, subject to Sections 13B-50,
513B-50.5, and 13B-50.10 of this Code. Approved programs
6operated by regional offices of education are entitled to
7receive general State aid or primary State aid at the
8foundation level of support. A school district or consortium
9must ensure that an approved program receives supplemental
10general State aid, transportation reimbursements, and special
11education resources, if appropriate, for students enrolled in
12the program.
13(Source: P.A. 92-42, eff. 1-1-02.)
 
14    (105 ILCS 5/14-7.02)  (from Ch. 122, par. 14-7.02)
15    Sec. 14-7.02. Children attending private schools, public
16out-of-state schools, public school residential facilities or
17nonpublic private special education facilities. The General
18Assembly recognizes that nonpublic non-public schools or
19special education facilities provide an important service in
20the educational system in Illinois.
21    If because of his or her disability the special education
22program of a district is unable to meet the needs of a child