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Public Act 101-0416


 

Public Act 0416 101ST GENERAL ASSEMBLY

  
  
  

 


 
Public Act 101-0416
 
SB1746 EnrolledLRB101 10338 AXK 55444 b

    AN ACT concerning education.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The School Code is amended by changing Sections
20-2, 20-4, and 20-5 as follows:
 
    (105 ILCS 5/20-2)   (from Ch. 122, par. 20-2)
    Sec. 20-2. Indebtedness and bonds. For the purpose of
creating, re-creating, or increasing a working cash fund, the
school board of any such district may incur an indebtedness and
issue bonds as evidence thereof in an amount or amounts not
exceeding in the aggregate 85% of the taxes permitted to be
levied for educational purposes for the then current year to be
determined by multiplying the maximum educational tax rate or
rates applicable to such school district by the last assessed
valuation or assessed valuations as determined at the time of
the issue of said bonds, plus 85% of the last known entitlement
of such district to taxes as by law now or hereafter enacted or
amended, imposed by the General Assembly of the State of
Illinois to replace revenue lost by units of local government
and school districts as a result of the abolition of ad valorem
personal property taxes, pursuant to Article IX, Section 5,
paragraph (c) of the Constitution of the State of Illinois,
plus 85% of the most recent amount of funding received by the
school district under Section 18-8.15. The bonds shall bear
interest at not more than the maximum rate authorized by law
and shall mature within 20 years from the date thereof. Subject
to the foregoing limitations as to amount, the bonds may be
issued in an amount including existing indebtedness which will
not exceed the constitutional limitation as to debt,
notwithstanding any statutory debt limitation to the contrary.
The school board shall before or at the time of issuing the
bonds provide for the collection of a direct annual tax upon
all the taxable property within the district sufficient to pay
the principal thereof at maturity and to pay the interest
thereon as it falls due, which tax shall be in addition to the
maximum amount of all other taxes, either educational;
transportation; operations and maintenance; or fire prevention
and safety fund taxes, now or hereafter authorized and in
addition to any limitations upon the levy of taxes as provided
by Sections 17-2 through 17-9.
    With respect to instruments for the payment of money issued
under this Section either before, on, or after the effective
date of this amendatory Act of 1989, it is and always has been
the intention of the General Assembly (i) that the Omnibus Bond
Acts are and always have been supplementary grants of power to
issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be
or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and
(iii) that instruments issued under this Section within the
supplementary authority granted by the Omnibus Bond Acts are
not invalid because of any provision of this Act that may
appear to be or to have been more restrictive than those Acts.
(Source: P.A. 96-1277, eff. 7-26-10.)
 
    (105 ILCS 5/20-4)  (from Ch. 122, par. 20-4)
    Sec. 20-4. Use and reimbursement of fund. This Section
shall not apply in any school district which does not operate a
working cash fund.
    Moneys derived from the issuance of bonds as authorized by
Section 20-2, or from any tax levied pursuant to Section 20-3,
shall be used only for the purposes and in the manner provided
in this Article. Moneys in the fund shall not be regarded as
current assets available for school purposes. The school board
may appropriate moneys to the working cash fund up to the
maximum amount allowable in the fund, and the working cash fund
may receive such appropriations and any other contributions.
Moneys in the fund may be used by the school board for any and
all school purposes and may be transferred in whole or in part
to the general funds or both of the school district and
disbursed therefrom in anticipation of the collection of taxes
lawfully levied for any or all purposes, or in anticipation of
such taxes as by law now or hereafter enacted or amended are
imposed by the General Assembly of the State of Illinois to
replace revenue lost by units of local government and school
districts as a result of the abolition of ad valorem personal
property taxes, pursuant to Article IX, Section 5(c) of the
Constitution of the State of Illinois, or in anticipation of
funding received by the school district under Section 18-8.15.
Moneys so transferred to any other fund shall be deemed to be
transferred in anticipation of the collection of that part of
the taxes so levied or to be received which is in excess of the
amount thereof required to pay any warrants or notes and the
interest thereon theretofore and thereafter issued in
anticipation of the collection thereof and such taxes when
collected shall be applied to the payment of any such warrants
and the interest thereon, the amount estimated to be required
to satisfy debt service and pension or retirement obligations,
as set forth in Section 12 of the State Revenue Sharing Act and
then to the reimbursement of such working cash fund as
hereinafter provided.
    Upon receipt by the school district of any taxes or State
funding in anticipation of the collection whereof moneys of the
working cash fund have been so transferred for disbursement,
the fund shall immediately be reimbursed therefrom until the
full amount so transferred has been retransferred to the fund.
Unless the taxes so received and applied to the reimbursement
of the working cash fund prior to the first day of the eighth
month following the month in which due and unpaid real property
taxes begin to bear interest are sufficient to effect a
complete reimbursement of such fund for any moneys transferred
therefrom in anticipation of the collection of such taxes, the
working cash fund shall be reimbursed for the amount of the
deficiency therein from any other revenues accruing to the
educational fund, and the school board shall make provisions
for the immediate reimbursement of the amount of any such
deficiency in its next annual tax levy.
(Source: P.A. 96-1277, eff. 7-26-10.)
 
    (105 ILCS 5/20-5)   (from Ch. 122, par. 20-5)
    Sec. 20-5. Transfer to other fund. This Section shall not
apply in any school district which does not operate a working
cash fund.
    Moneys in the working cash fund shall be transferred from
the working cash fund to another fund of the district only upon
the authority of the school board which shall from time to time
by separate resolution direct the school treasurer to make
transfers of such sums as may be required for the purposes
herein authorized.
    The resolution shall set forth (a) the taxes and State
funding in anticipation of which such transfer is to be made
and from which the working cash fund is to be reimbursed; (b)
the entire amount of taxes extended, or which the school board
estimates will be extended or received, for any year in
anticipation of the collection of all or part of which such
transfer is to be made; (c) the aggregate amount of warrants or
notes theretofore issued in anticipation of the collection of
such taxes together with the amount of interest accrued and
which the school board estimates will accrue thereon; (d) the
aggregate amount of receipts from taxes imposed to replace
revenue lost by units of local government and school districts
as a result of the abolition of ad valorem personal property
taxes, pursuant to Article IX, Section 5(c) of the Constitution
of the State of Illinois, which the corporate authorities
estimate will be set aside for the payment of the proportionate
amount of debt service and pension or retirement obligations,
as required by Section 12 of the State Revenue Sharing Act; and
(e) the aggregate amount of money theretofore transferred from
the working cash fund to the other fund in anticipation of the
collection of such taxes and State funding; and (f) the
aggregate amount of funding received by the school district
under Section 18-8.15. The amount which any such resolution
shall direct the treasurer so to transfer, in anticipation of
the collection of taxes levied or to be received for any year,
together with the aggregate amount of such anticipation tax
warrants or notes theretofore drawn against such taxes and the
amount of interest accrued and estimated to accrue thereon and
the aggregate amount of such transfers to be made in
anticipation of the collection of such taxes and the amount
estimated to be required to satisfy debt service and pension or
retirement obligations, as set forth in Section 12 of the State
Revenue Sharing Act, shall not exceed 85% of the actual or
estimated amount of such taxes extended or to be extended or to
be received as set forth in such resolution. At any time moneys
are available in the working cash fund they shall be
transferred to such other funds of the district and used for
any and all school purposes so as to avoid, whenever possible,
the issuance of anticipation tax warrants or notes.
    Moneys earned as interest from the investment of the
working cash fund, or any portion thereof, may be transferred
from the working cash fund to another fund of the district that
is most in need of the interest without any requirement of
repayment to the working cash fund, upon the authority of the
school board by separate resolution directing the school
treasurer to make such transfer and stating the purpose in
accordance with subsection (c) of Section 9 of the Local
Government Debt Reform Act.
(Source: P.A. 96-1277, eff. 7-26-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/16/2019