Public Act 098-1112
 
SB3113 EnrolledLRB098 19695 NHT 54903 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 Section 
11E-105 as follows:
 
    (105 ILCS 5/11E-105)
    Sec. 11E-105. Assets, liabilities and bonded indebtedness; 
tax rate.
    (a) Subject to the terms and provisions of subsections (b) 
and (c) of this Section, whenever a new district is created 
under any of the provisions of this Article, the outstanding 
bonded indebtedness shall be treated as provided in this 
subsection (a) and in Section 19-29 of this Code.  The tax rate 
for bonded indebtedness shall be determined in the manner 
provided in Section 19-7 of this Code, and, notwithstanding the 
creation of any such district, the county clerk or clerks shall 
annually extend taxes,  for each outstanding bond issue against 
all of the taxable property that was situated within the 
boundaries of the district, as those  boundaries existed at the 
time of the issuance of the  bond issue, regardless of whether 
the  property is still contained in that same district at the 
time of the extension of the  taxes by the county clerk or 
clerks; provided that, notwithstanding the provisions of 
Section 19-18 of this Code, upon resolution of the school 
board, the county clerk must extend taxes to pay the principal 
of and interest on any general obligation bonds issued by the 
new district exclusively to refund any bonded indebtedness of a 
district organized into the new district against all of the 
taxable property that was situated within the boundaries of the 
previously existing district as the boundaries existed at the 
time of the issuance of the bonded indebtedness being refunded; 
however, (i) the net interest rate on the refunding bonds may 
not exceed the net interest rate on the refunded bonds, (ii) 
the final maturity date of the refunding bonds may not extend 
beyond the final maturity date of the refunded bonds, and (iii) 
the tax levy to pay the refunding bonds in any levy year may 
not exceed the tax levy that would have been required to pay 
the refunded bonds for that levy year. The terms of the proviso 
are applicable to districts that were created pursuant to a 
referendum held in November of 2008.  The terms of the proviso, 
other than this sentence, are inoperative after June 30, 2016. 
    (b) For a unit district formation, whenever a part of a 
district is included within the boundaries of a newly created 
unit district, the regional superintendent of schools shall 
cause an accounting to be had between the districts affected by 
the change in boundaries as provided for in Article 11C of this 
Code.   Whenever the entire territory of 2 or more school 
districts is organized into a unit district pursuant to a 
petition filed under this Article, the petition may provide 
that the entire territory of the new unit district shall assume 
the bonded indebtedness of the previously existing school 
districts.  In that case, the tax rate for bonded indebtedness 
shall be determined in the manner provided in Section 19-7 of 
this Code, except that  the county clerk shall annually extend 
taxes for each outstanding bond issue against all the taxable 
property situated in the new unit district as it exists after 
the organization.
    (c)(1) For a high school-unit conversion, unit to dual 
conversion, or multi-unit conversion, upon the effective date 
of the change as provided in Section 11E-70 of this Code and 
subject to the provisions of paragraph (2) of this  subsection 
(c), each newly created elementary district shall receive all 
of  the assets and assume all of  the liabilities and obligations 
of the dissolved unit district forming the boundary of the 
newly created elementary district.
    (2) Notwithstanding the provisions of paragraph (1) of this  
subsection (c), upon the stipulation of the school board of the 
school district serving a newly created elementary district for 
high school purposes

and either (i) the school board of the 
unit district prior to the effective date of its dissolution  or 
(ii)  thereafter   the school board of the newly created 
elementary district  and with the approval in either case of the 
regional superintendent of schools of the educational service 
region in which the territory described in the petition filed 
under this Article or the greater percentage of equalized 
assessed valuation of the territory is situated, the assets, 
liabilities, and obligations of the dissolved unit district may 
be divided and assumed between and by the newly created 
elementary district and the school district serving the newly 
created elementary district for high school purposes,

in 
accordance with the terms and provisions of the stipulation and 
approval. In this  event, the provisions of Section 19-29 shall 
be applied to determine the debt incurring power of the newly 
created elementary district and of the  school district serving 
the newly created elementary district for high school purposes.
    (3) Without regard to whether the receipt of assets and the 
assumption of liabilities and obligations of the dissolved unit 
district is determined pursuant to paragraph  (1) or (2) of this 
subsection (c), the tax rate for bonded indebtedness shall be 
determined in the manner provided in Section 19-7, and, 
notwithstanding the creation of this new elementary district, 
the county clerk or clerks shall annually extend taxes for each 
outstanding bond issue against all of the taxable property that 
was situated within the boundaries of the dissolved unit 
district as those boundaries existed at the time of the 
issuance of the  bond issue, regardless of whether the property 
was still contained in that unit district at the time of its 
dissolution and regardless of whether the property is contained 
in the newly created elementary district at the time of the 
extension of the taxes by the county clerk or clerks.


(Source: P.A. 94-1019, eff. 7-10-06.)