Public Act 096-0787
 		





SB1995 Enrolled
LRB096 11419 RCE 21887 b






    AN ACT concerning finance.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:




 
    Section 5. The Local Government Debt Reform Act is amended  
by changing Section 10 as follows:
 



    (30 ILCS 350/10)  (from Ch. 17, par. 6910)



    Sec. 10. General provisions. Bonds authorized by 
applicable law may
be issued in one or more series, bear such 
date or dates, become due at
such time or times within 40 
years, except as expressly limited by
applicable law, provided 
that notwithstanding any such express limitation bonds issued 
by Lockport High School or Elgin Community College District No. 
509  for the purpose of purchasing, constructing, or improving 
real property may become due within 25 years, bear interest 
payable at such intervals and at such rate or
rates as 
authorized under applicable law, which rates may be fixed or

variable, be in such denominations, be in such form, either 
coupon,
registered or book-entry, carry such conversion, 
registration, and exchange
privileges, be subject to 
defeasance upon such terms, have such rank or
priority, be 
executed in such manner, be payable in such medium of payment

at such place or places within or without the State of 
Illinois, make
provision for a corporate trustee within or 
without the State with respect
to such bonds, prescribe the 
rights, powers and duties thereof to be
exercised for the 
benefit of the governmental unit and the protection of
the 
bondholders, provide for the holding in trust, investment and 
use of
moneys, funds and accounts held under an ordinance, 
provide for assignment
of and direct payment of the moneys to 
pay such bonds or to be deposited
into such funds or accounts 
directly to such trustee, be subject to such
terms of 
redemption with or without premium, and be sold in such manner 
at
private or public sale and at such price, all as the 
governing body shall
determine.  Whenever such bonds are sold at 
price less than par, they
shall be sold at such price and bear 
interest at such rate or rates such
that either the true 
interest cost (yield) or the net interest rate, as may
be 
selected by the governing body, received upon the sale of such 
bonds
does not exceed the maximum rate otherwise authorized by 
applicable law.
Except for an ordinance required to be 
published by applicable law in
connection with a backdoor 
referendum, any bond ordinance adopted by a
governing body 
under applicable law shall, in all instances, become effective

immediately without publication or posting or any further act 
or requirement.

(Source: P.A. 90-306, eff. 8-1-97.)


 
    Section 10. The School Code is amended  by changing Section 
19-3 as follows:
 



    (105 ILCS 5/19-3)  (from Ch. 122, par. 19-3)



    Sec. 19-3. Boards of education. Any school district 
governed by a board of
education and having a population of not 
more than 500,000 inhabitants, and
not governed by a special 
Act may borrow money for the purpose of building,
equipping, 
altering or repairing school buildings or purchasing or 
improving
school sites, or acquiring and equipping 
playgrounds, recreation grounds,
athletic fields, and other 
buildings or land used or useful for school purposes
or for the 
purpose of purchasing a site, with or without a building or

buildings thereon, or for the building of a house or houses on 
such site,
or for the building of a house or houses on the 
school site of the school
district, for residential purposes of 
the superintendent, principal, or
teachers of the school 
district, and issue its negotiable coupon bonds therefor
signed 
by the president and secretary of the board, in denominations 
of not
less than $100 nor more than $5,000, payable at such 
place and at such time or
times, not exceeding 20 years, with 
the exception of Lockport High School not exceeding 25 years, 
from date of issuance, as the board of education
may  prescribe, 
and bearing interest at a rate not to exceed the maximum rate

authorized by the Bond Authorization Act, as amended at the 
time of the making
of the contract, payable annually, 
semiannually or quarterly, but no such bonds
shall be issued 
unless the proposition to issue them is submitted to the voters

of the district at a referendum held at a regularly scheduled 
election after
the board has certified the proposition to the 
proper election authorities in
accordance with the general 
election law, a majority of all the votes cast on
the 
proposition is in favor of the proposition, and notice of such 
bond
referendum has been
given either (i) in accordance with 
the second paragraph of Section 12-1 of the
Election Code 
irrespective of whether such notice included any reference to 
the
public question as it appeared on the ballot, or (ii) for 
an election held on
or after November 1, 1998, in accordance 
with Section 12-5 of the Election
Code, or (iii) by publication 
of a true and legible copy of the specimen ballot
label 
containing the proposition in the form in which it appeared or 
will
appear on the official ballot label on the day of the 
election  at least 5 days
before the day of the election in at 
least one newspaper published in and
having a general 
circulation in the district,
irrespective of any other 
requirements of Article 12 or Section 24A-18 of
the Election 
Code, nor shall any residential site be acquired unless such

proposition to acquire a site is submitted to the voters of the 
district at a
referendum held at a regularly scheduled election 
after the board has certified
the proposition to the proper 
election authorities in accordance with the
general election 
law and a majority of all the votes cast on the proposition is

in favor of the proposition.  Nothing in this Act or in any 
other law shall be
construed to require the notice of the bond 
referendum to be published over the
name or title of the 
election authority or the listing of maturity dates of
any 
bonds either in the notice of bond election or ballot used in 
the bond
election.
The provisions of this Section concerning 
notice of the bond referendum
apply only to (i) consolidated 
primary elections held prior to January 1,
2002 and the 
consolidated election held on April 17, 2007 at which not less 
than 60%
of the voters voting on the bond proposition voted in 
favor of the bond
proposition, and (ii) other elections held 
before July 1, 1999; otherwise, notices required
in connection 
with the submission of public questions shall be as set forth 
in
Section 12-5 of the Election Code.
 Such proposition may be 
initiated by resolution of the school board.

    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.

    The proceeds of any bonds issued under authority of this 
Section shall
be deposited and accounted for separately within 
the Site and
Construction/Capital Improvements Fund.

(Source: P.A. 95-30, eff. 8-7-07.)


 
    Section 15. The Public Community College Act is amended  by 
changing Section 3A-1 as follows:
 



    (110 ILCS 805/3A-1)  (from Ch. 122, par. 103A-1)


    Sec. 3A-1. 
Any community college district may borrow money 
for the
purpose of building, equipping, altering or repairing 
community college
buildings or purchasing or improving 
community college sites, or acquiring
and equipping recreation 
grounds, athletic fields, and other
buildings or land used or 
useful for community college purposes or for
the purpose of 
purchasing a site, with or without a building or
buildings 
thereon, or for the building of a house or houses on such
site, 
or for the building of a house or houses on the site of the

community college district, for residential purposes of the

administrators or faculty of the community college district, 
and issue
its negotiable coupon bonds therefor signed by the 
chairman and
secretary of the board, in denominations of not 
less than $100 nor more
than $5,000, payable at such place and 
at such time or times, not
exceeding 20 years from date of 
issuance, as the board may prescribe,
and bearing interest at a 
rate not to exceed
the maximum rate authorized by the Bond 
Authorization Act, as amended at the
time of the making of the 
contract, payable
annually, semiannually or quarterly, but no 
such bonds shall be issued
unless the proposition to issue them 
is submitted to the voters of the
community college district at 
a regular scheduled election in such district
and the board 
shall certify the proposition to the proper election

authorities for submission in accordance with the general 
election law and
a majority of all the votes cast on the 
proposition is in favor of the
proposition, nor shall any 
residential site be acquired unless such
proposition to acquire 
a site is submitted to the voters of the district at
a regular 
scheduled election and the board shall certify the proposition 
to
the proper election authorities for submission to the 
electors in
accordance with the general election law and a 
majority of all the votes
cast on the proposition is in favor 
of the proposition. Nothing in this
Act shall be construed as 
to require the listing of maturity dates of
any bonds either in 
the notice of bond election or ballot used in the
bond 
election.

    Bonds issued in accordance with this Section for Elgin 
Community College District No. 509 may be payable at such time 
or times, not exceeding 25 years from date of issuance, as the 
board may prescribe, if the following conditions are met:
        (i) The voters of the district approve a proposition 
    for the bond issuance at an election held in 2009.
        (ii) Prior to the issuance of the bonds, the board 
    determines, by resolution, that the projects built, 
    acquired, altered, renovated, repaired, purchased, 
    improved, installed, or equipped with the proceeds of the 
    bonds are required as a result of a projected increase in 
    the enrollment of students in the district, to meet demand 
    in the fields of health care or public safety, to meet 
    accreditation standards, or to maintain campus safety and 
    security.
        (iii) The bonds are issued, in one more more bond 
    issuances, on or before April 7, 2014.
        (iv) The proceeds of the bonds are used to accomplish 
    only those purposes approved by the voters at an election 
    held in 2009. 
    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. 86-4.)



 
    Section 99. Effective date. This Act takes effect upon 
becoming law.