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.