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90_HB2470
SEE INDEX
Amends the School Construction Law, the School Code, and
the State Finance Act. Eliminates minimum enrollment
requirements as a criteria for grant eligibility under the
School Construction Law and reduces the EAV per ADA pupil
percentile level at which districts no longer qualify for a
grant to the 95th from the 99th percentile. Provides for the
State Board of Education to award a reorganization incentive
grant, payable from appropriations made out of the School
Infrastructure Fund, to a school district that receives a
school construction project grant from the Capital
Development Board based upon the district's present or
anticipated school construction needs attributable to its
organization or formation as a community unit or combined
school district or its annexation of all of the territory of
another school district. Provides that the organization,
formation, or annexation must be initiated by a petition
filed after the amendatory Act's effective date and must take
effect for all purposes not more than 2 years after the
district receives its school construction project grant.
Requires the State Board of Education to certify to a school
district that has been issued a grant entitlement for a
school construction project the amount of the project cost
that the district will be required to finance with non-grant
funds. Authorizes such a district, if it has no unused
bonding capacity or if its remaining bonding capacity is less
than the amount certified by the State Board of Education, to
by referendum incur additional indebtedness by the issuance
of school construction project bonds in an amount not
exceeding the project cost that the district must finance
with non-grant funds. Makes other related changes.
Effective immediately.
LRB9008448THpk
LRB9008448THpk
1 AN ACT relating to school construction projects, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Finance Act is amended by changing
6 Section 6z-45 as follows:
7 (30 ILCS 105/6z-45)
8 Sec. 6z-45. The School Infrastructure Fund. The School
9 Infrastructure Fund is created as a special fund in the State
10 Treasury. Subject to appropriation, money in the School
11 Infrastructure Fund shall, if and when the State of Illinois
12 incurs any bonded indebtedness for the construction of school
13 improvements under the School Construction Act, be set aside
14 and used for the purpose of paying and discharging annually
15 the principal and interest on that bonded indebtedness then
16 due and payable, and for no other purpose. The surplus, if
17 any, in the School Infrastructure Fund after the payment of
18 principal and interest on that bonded indebtedness then
19 annually due shall, subject to appropriation, be used as
20 follows:
21 First--to make 3 payments to the School Technology
22 Revolving Loan Fund as follows:
23 Transfer of $30,000,000 in fiscal year 1999;
24 Transfer of $20,000,000 in fiscal year 2000; and
25 Transfer of $10,000,000 in fiscal year 2001.
26 Second--to pay the expenses of the State Board of
27 Education and the Capital Development Board in administering
28 programs under the School Construction Act, the total
29 expenses not to exceed $1,000,000 in any fiscal year.
30 Third--to pay any amounts due for grants for school
31 construction projects, reorganization incentives, and debt
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1 service under the School Construction Act.
2 (Source: P.A. 90-548, eff. 1-1-98.)
3 Section 10. The School Code is amended by changing
4 Section 19-1 as follows:
5 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
6 Sec. 19-1. Debt limitations of school districts.
7 (a) School districts shall not be subject to the
8 provisions limiting their indebtedness prescribed in "An Act
9 to limit the indebtedness of counties having a population of
10 less than 500,000 and townships, school districts and other
11 municipal corporations having a population of less than
12 300,000", approved February 15, 1928, as amended.
13 No school districts maintaining grades K through 8 or 9
14 through 12 shall become indebted in any manner or for any
15 purpose to an amount, including existing indebtedness, in the
16 aggregate exceeding 6.9% on the value of the taxable property
17 therein to be ascertained by the last assessment for State
18 and county taxes or, until January 1, 1983, if greater, the
19 sum that is produced by multiplying the school district's
20 1978 equalized assessed valuation by the debt limitation
21 percentage in effect on January 1, 1979, previous to the
22 incurring of such indebtedness.
23 No school districts maintaining grades K through 12 shall
24 become indebted in any manner or for any purpose to an
25 amount, including existing indebtedness, in the aggregate
26 exceeding 13.8% on the value of the taxable property therein
27 to be ascertained by the last assessment for State and county
28 taxes or, until January 1, 1983, if greater, the sum that is
29 produced by multiplying the school district's 1978 equalized
30 assessed valuation by the debt limitation percentage in
31 effect on January 1, 1979, previous to the incurring of such
32 indebtedness.
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1 Notwithstanding the provisions of any other law to the
2 contrary, in any case in which the voters of a school
3 district have approved a proposition for the issuance of
4 bonds of such school district at an election held prior to
5 January 1, 1979, and all of the bonds approved at such
6 election have not been issued, the debt limitation applicable
7 to such school district during the calendar year 1979 shall
8 be computed by multiplying the value of taxable property
9 therein, including personal property, as ascertained by the
10 last assessment for State and county taxes, previous to the
11 incurring of such indebtedness, by the percentage limitation
12 applicable to such school district under the provisions of
13 this subsection (a).
14 (b) Notwithstanding the debt limitation prescribed in
15 subsection (a) of this Section, additional indebtedness may
16 be incurred in an amount not to exceed the estimated cost of
17 acquiring or improving school sites or constructing and
18 equipping additional building facilities under the following
19 conditions:
20 (1) Whenever the enrollment of students for the
21 next school year is estimated by the board of education
22 to increase over the actual present enrollment by not
23 less than 35% or by not less than 200 students or the
24 actual present enrollment of students has increased over
25 the previous school year by not less than 35% or by not
26 less than 200 students and the board of education
27 determines that additional school sites or building
28 facilities are required as a result of such increase in
29 enrollment; and
30 (2) When the Regional Superintendent of Schools
31 having jurisdiction over the school district and the
32 State Superintendent of Education concur in such
33 enrollment projection or increase and approve the need
34 for such additional school sites or building facilities
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1 and the estimated cost thereof; and
2 (3) When the voters in the school district approve
3 a proposition for the issuance of bonds for the purpose
4 of acquiring or improving such needed school sites or
5 constructing and equipping such needed additional
6 building facilities at an election called and held for
7 that purpose. Notice of such an election shall state that
8 the amount of indebtedness proposed to be incurred would
9 exceed the debt limitation otherwise applicable to the
10 school district. The ballot for such proposition shall
11 state what percentage of the equalized assessed valuation
12 will be outstanding in bonds if the proposed issuance of
13 bonds is approved by the voters; or
14 (4) Notwithstanding the provisions of paragraphs
15 (1) through (3) of this subsection (b), if the school
16 board determines that additional facilities are needed to
17 provide a quality educational program and not less than
18 2/3 of those voting in an election called by the school
19 board on the question approve the issuance of bonds for
20 the construction of such facilities, the school district
21 may issue bonds for this purpose.
22 In no event shall the indebtedness incurred pursuant to
23 this subsection (b) and the existing indebtedness of the
24 school district exceed 15% of the value of the taxable
25 property therein to be ascertained by the last assessment for
26 State and county taxes, previous to the incurring of such
27 indebtedness or, until January 1, 1983, if greater, the sum
28 that is produced by multiplying the school district's 1978
29 equalized assessed valuation by the debt limitation
30 percentage in effect on January 1, 1979.
31 The indebtedness provided for by this subsection (b)
32 shall be in addition to and in excess of any other debt
33 limitation.
34 (c) Notwithstanding the debt limitation prescribed in
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1 subsection (a) of this Section, in any case in which a public
2 question for the issuance of bonds of a proposed school
3 district maintaining grades kindergarten through 12 received
4 at least 60% of the valid ballots cast on the question at an
5 election held on or prior to November 8, 1994, and in which
6 the bonds approved at such election have not been issued, the
7 school district pursuant to the requirements of Section
8 11A-10 may issue the total amount of bonds approved at such
9 election for the purpose stated in the question.
10 (d) Notwithstanding the debt limitation prescribed in
11 subsection (a) of this Section, a school district that meets
12 all the criteria set forth in paragraphs (1) and (2) of this
13 subsection (d) may incur an additional indebtedness in an
14 amount not to exceed $4,500,000, even though the amount of
15 the additional indebtedness authorized by this subsection
16 (d), when incurred and added to the aggregate amount of
17 indebtedness of the district existing immediately prior to
18 the district incurring the additional indebtedness authorized
19 by this subsection (d), causes the aggregate indebtedness of
20 the district to exceed the debt limitation otherwise
21 applicable to that district under subsection (a):
22 (1) The additional indebtedness authorized by this
23 subsection (d) is incurred by the school district through
24 the issuance of bonds under and in accordance with
25 Section 17-2.11a for the purpose of replacing a school
26 building which, because of mine subsidence damage, has
27 been closed as provided in paragraph (2) of this
28 subsection (d) or through the issuance of bonds under and
29 in accordance with Section 19-3 for the purpose of
30 increasing the size of, or providing for additional
31 functions in, such replacement school buildings, or both
32 such purposes.
33 (2) The bonds issued by the school district as
34 provided in paragraph (1) above are issued for the
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1 purposes of construction by the school district of a new
2 school building pursuant to Section 17-2.11, to replace
3 an existing school building that, because of mine
4 subsidence damage, is closed as of the end of the 1992-93
5 school year pursuant to action of the regional
6 superintendent of schools of the educational service
7 region in which the district is located under Section
8 3-14.22 or are issued for the purpose of increasing the
9 size of, or providing for additional functions in, the
10 new school building being constructed to replace a school
11 building closed as the result of mine subsidence damage,
12 or both such purposes.
13 (e) Notwithstanding the debt limitation prescribed in
14 subsection (a) of this Section, a school district that meets
15 all the criteria set forth in paragraphs (1) through (5) of
16 this subsection (e) may, without referendum, incur an
17 additional indebtedness in an amount not to exceed the lesser
18 of $5,000,000 or 1.5% of the value of the taxable property
19 within the district even though the amount of the additional
20 indebtedness authorized by this subsection (e), when incurred
21 and added to the aggregate amount of indebtedness of the
22 district existing immediately prior to the district incurring
23 that additional indebtedness, causes the aggregate
24 indebtedness of the district to exceed or increases the
25 amount by which the aggregate indebtedness of the district
26 already exceeds the debt limitation otherwise applicable to
27 that district under subsection (a):
28 (1) The State Board of Education certifies the
29 school district under Section 19-1.5 as a financially
30 distressed district.
31 (2) The additional indebtedness authorized by this
32 subsection (e) is incurred by the financially distressed
33 district during the school year or school years in which
34 the certification of the district as a financially
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1 distressed district continues in effect through the
2 issuance of bonds for the lawful school purposes of the
3 district, pursuant to resolution of the school board and
4 without referendum, as provided in paragraph (5) of this
5 subsection.
6 (3) The aggregate amount of bonds issued by the
7 financially distressed district during a fiscal year in
8 which it is authorized to issue bonds under this
9 subsection does not exceed the amount by which the
10 aggregate expenditures of the district for operational
11 purposes during the immediately preceding fiscal year
12 exceeds the amount appropriated for the operational
13 purposes of the district in the annual school budget
14 adopted by the school board of the district for the
15 fiscal year in which the bonds are issued.
16 (4) Throughout each fiscal year in which
17 certification of the district as a financially distressed
18 district continues in effect, the district maintains in
19 effect a gross salary expense and gross wage expense
20 freeze policy under which the district expenditures for
21 total employee salaries and wages do not exceed such
22 expenditures for the immediately preceding fiscal year.
23 Nothing in this paragraph, however, shall be deemed to
24 impair or to require impairment of the contractual
25 obligations, including collective bargaining agreements,
26 of the district or to impair or require the impairment of
27 the vested rights of any employee of the district under
28 the terms of any contract or agreement in effect on the
29 effective date of this amendatory Act of 1994.
30 (5) Bonds issued by the financially distressed
31 district under this subsection shall bear interest at a
32 rate not to exceed the maximum rate authorized by law at
33 the time of the making of the contract, shall mature
34 within 40 years from their date of issue, and shall be
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1 signed by the president of the school board and treasurer
2 of the school district. In order to issue bonds under
3 this subsection, the school board shall adopt a
4 resolution fixing the amount of the bonds, the date of
5 the bonds, the maturities of the bonds, the rates of
6 interest of the bonds, and their place of payment and
7 denomination, and shall provide for the levy and
8 collection of a direct annual tax upon all the taxable
9 property in the district sufficient to pay the principal
10 and interest on the bonds to maturity. Upon the filing
11 in the office of the county clerk of the county in which
12 the financially distressed district is located of a
13 certified copy of the resolution, it is the duty of the
14 county clerk to extend the tax therefor in addition to
15 and in excess of all other taxes at any time authorized
16 to be levied by the district. If bond proceeds from the
17 sale of bonds include a premium or if the proceeds of the
18 bonds are invested as authorized by law, the school board
19 shall determine by resolution whether the interest earned
20 on the investment of bond proceeds or the premium
21 realized on the sale of the bonds is to be used for any
22 of the lawful school purposes for which the bonds were
23 issued or for the payment of the principal indebtedness
24 and interest on the bonds. The proceeds of the bond sale
25 shall be deposited in the educational purposes fund of
26 the district and shall be used to pay operational
27 expenses of the district. This subsection is cumulative
28 and constitutes complete authority for the issuance of
29 bonds as provided in this subsection, notwithstanding any
30 other law to the contrary.
31 (f) Notwithstanding the provisions of subsection (a) of
32 this Section or of any other law, bonds in not to exceed the
33 aggregate amount of $5,500,000 and issued by a school
34 district meeting the following criteria shall not be
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1 considered indebtedness for purposes of any statutory
2 limitation and may be issued in an amount or amounts,
3 including existing indebtedness, in excess of any heretofore
4 or hereafter imposed statutory limitation as to indebtedness:
5 (1) At the time of the sale of such bonds, the
6 board of education of the district shall have determined
7 by resolution that the enrollment of students in the
8 district is projected to increase by not less than 7%
9 during each of the next succeeding 2 school years.
10 (2) The board of education shall also determine by
11 resolution that the improvements to be financed with the
12 proceeds of the bonds are needed because of the projected
13 enrollment increases.
14 (3) The board of education shall also determine by
15 resolution that the projected increases in enrollment are
16 the result of improvements made or expected to be made to
17 passenger rail facilities located in the school district.
18 (g) Notwithstanding the provisions of subsection (a) of
19 this Section or any other law, bonds in not to exceed an
20 aggregate amount of 25% of the equalized assessed value of
21 the taxable property of a school district and issued by a
22 school district meeting the criteria in paragraphs (i)
23 through (iv) of this subsection shall not be considered
24 indebtedness for purposes of any statutory limitation and may
25 be issued pursuant to resolution of the school board in an
26 amount or amounts, including existing indebtedness, in excess
27 of any statutory limitation of indebtedness heretofore or
28 hereafter imposed:
29 (i) The bonds are issued for the purpose of
30 constructing a new high school building to replace two
31 adjacent existing buildings which together house a single
32 high school, each of which is more than 65 years old, and
33 which together are located on more than 10 acres and less
34 than 11 acres of property.
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1 (ii) At the time the resolution authorizing the
2 issuance of the bonds is adopted, the cost of
3 constructing a new school building to replace the
4 existing school building is less than 60% of the cost of
5 repairing the existing school building.
6 (iii) The sale of the bonds occurs before July 1,
7 1997.
8 (iv) The school district issuing the bonds is a
9 unit school district located in a county of less than
10 70,000 and more than 50,000 inhabitants, which has an
11 average daily attendance of less than 1,500 and an
12 equalized assessed valuation of less than $29,000,000.
13 (h) Notwithstanding any other provisions of this Section
14 or the provisions of any other law, until January 1, 1998, a
15 community unit school district maintaining grades K through
16 12 may issue bonds up to an amount, including existing
17 indebtedness, not exceeding 27.6% of the equalized assessed
18 value of the taxable property in the district, if all of the
19 following conditions are met:
20 (i) The school district has an equalized assessed
21 valuation for calendar year 1995 of less than
22 $24,000,000;
23 (ii) The bonds are issued for the capital
24 improvement, renovation, rehabilitation, or replacement
25 of existing school buildings of the district, all of
26 which buildings were originally constructed not less than
27 40 years ago;
28 (iii) The voters of the district approve a
29 proposition for the issuance of the bonds at a referendum
30 held after March 19, 1996; and
31 (iv) The bonds are issued pursuant to Sections 19-2
32 through 19-7 of this Code.
33 (i) Notwithstanding any other provisions of this Section
34 or the provisions of any other law, until January 1, 1998, a
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1 community unit school district maintaining grades K through
2 12 may issue bonds up to an amount, including existing
3 indebtedness, not exceeding 27% of the equalized assessed
4 value of the taxable property in the district, if all of the
5 following conditions are met:
6 (i) The school district has an equalized assessed
7 valuation for calendar year 1995 of less than
8 $44,600,000;
9 (ii) The bonds are issued for the capital
10 improvement, renovation, rehabilitation, or replacement
11 of existing school buildings of the district, all of
12 which existing buildings were originally constructed not
13 less than 80 years ago;
14 (iii) The voters of the district approve a
15 proposition for the issuance of the bonds at a referendum
16 held after December 31, 1996; and
17 (iv) The bonds are issued pursuant to Sections 19-2
18 through 19-7 of this Code.
19 (j) Notwithstanding any other provisions of this Section
20 or the provisions of any other law, until January 1, 1999, a
21 community unit school district maintaining grades K through
22 12 located in a county of more than 240,000 but less than
23 260,000 inhabitants may issue bonds up to an amount,
24 including existing indebtedness, not exceeding 27% of the
25 equalized assessed value of the taxable property in the
26 district if all of the following conditions are met:
27 (i) The school district has an equalized assessed
28 valuation for calendar year 1995 of less than
29 $137,400,000 and a best 3 months average daily attendance
30 for the 1994-95 school year of at least 2,800, but less
31 than 3,000;
32 (ii) The bonds are issued for the capital
33 improvement, renovation, rehabilitation, or replacement
34 of existing school buildings of the district, all of
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1 which existing buildings were originally constructed not
2 less than 80 years ago, or for the construction of new
3 school facilities;
4 (iii) The voters of the district approve a
5 proposition for the issuance of the bonds at a referendum
6 held after December 31, 1996; and
7 (iv) The bonds are issued pursuant to Sections 19-2
8 through 19-7 of this Code.
9 (k) Notwithstanding the debt limitation prescribed in
10 subsection (a) of this Section or any other provisions of
11 this Section or of any other law, a school district that
12 meets all of the criteria set forth in paragraphs (i) through
13 (vi) of this subsection may incur additional indebtedness by
14 the issuance of bonds in an amount not exceeding the amount
15 certified by the State Board of Education to the school
16 district as provided in paragraph (iii) of this subsection,
17 even though the amount of the additional indebtedness so
18 authorized, when incurred and added to the aggregate amount
19 of indebtedness of the district existing immediately prior to
20 the district incurring the additional indebtedness authorized
21 by this subsection, causes the aggregate indebtedness of the
22 district to exceed the debt limitation otherwise applicable
23 by law to that district:
24 (i) The school district applies to the State Board
25 of Education for a school construction project grant and
26 submits a district facilities plan in support of its
27 application pursuant to Section 5-20 of the School
28 Construction Law.
29 (ii) The school district's application and
30 facilities plan are approved by, and the district
31 receives a grant entitlement for a school construction
32 project issued by, the State Board of Education under the
33 School Construction Law.
34 (iii) The school district has exhausted its bonding
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1 capacity or the unused bonding capacity of the district
2 is less than the amount certified by the State Board of
3 Education to the district under Section 5-15 of the
4 School Construction Law as the dollar amount of the
5 school construction project's cost that the district will
6 be required to finance with non-grant funds in order to
7 receive a school construction project grant under the
8 School Construction Law.
9 (iv) The bonds are issued for a "school
10 construction project", as that term is defined in Section
11 5-5 of the School Construction Law, in an amount that
12 does not exceed the dollar amount certified, as provided
13 in paragraph (iii) of this subsection (k), by the State
14 Board of Education to the school district under Section
15 5-15 of the School Construction Law.
16 (v) The voters of the district approve a
17 proposition for the issuance of the bonds at a referendum
18 held after the criteria specified in paragraphs (i) and
19 (iii) of this subsection (k) are met.
20 (vi) The bonds are issued pursuant to Sections 19-2
21 through 19-7 of the School Code.
22 (Source: P.A. 88-376; 88-641, eff. 9-9-94; 88-686, eff.
23 1-24-95; 89-47, eff. 7-1-95; 89-661, eff. 1-1-97; 89-698,
24 eff. 1-14-97.)
25 Section 15. The School Construction Law is amended by
26 changing Sections 5-5, 5-15, 5-20, and 5-25 and adding
27 Section 5-53 as follows:
28 (105 ILCS 230/5-5)
29 Sec. 5-5. Definitions. As used in this Article:
30 "Approved school construction bonds" mean bonds that were
31 approved by referendum after January 1, 1996 but prior to
32 January 1, 1998 as provided in Sections 19-2 through 19-7 of
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1 the School Code to provide funds for the acquisition,
2 development, construction, reconstruction, rehabilitation,
3 improvement, architectural planning, and installation of
4 capital facilities consisting of buildings, structures,
5 durable-equipment, and land for educational purposes.
6 "Grant index" means a figure for each school district
7 equal to one minus the ratio of the district's equalized
8 assessed valuation per pupil in average daily attendance to
9 the equalized assessed valuation per pupil in average daily
10 attendance of the district located at the 90th percentile for
11 all districts of the same type. The grant index shall be no
12 less than 0.35 and no greater than 0.75 for each district;
13 provided that the grant index for districts whose equalized
14 assessed valuation per pupil in average daily attendance is
15 at the 95th 99th percentile and above for all districts of
16 the same type shall be 0.00.
17 "School construction project" means the acquisition,
18 development, construction, reconstruction, rehabilitation,
19 improvement, architectural planning, and installation of
20 capital facilities consisting of buildings, structures,
21 durable equipment, and land for educational purposes.
22 (Source: P.A. 90-548, eff. 1-1-98.)
23 (105 ILCS 230/5-15)
24 Sec. 5-15. Grant entitlements. The State Board of
25 Education is authorized to issue grant entitlements for
26 school construction projects and debt service and shall
27 determine the priority order for school construction project
28 grants to be made by the Capital Development Board. When
29 issuing a grant entitlement for a school construction
30 project, the State Board of Education, as a part of that
31 entitlement, shall certify to the district receiving the
32 entitlement the dollar amount of the school construction
33 project's cost that the district will be required to finance
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1 with non-grant funds in order to qualify to receive a school
2 construction project grant under this Article from the
3 Capital Development Board.
4 (Source: P.A. 90-548, eff. 1-1-98.)
5 (105 ILCS 230/5-20)
6 Sec. 5-20. Grant application; district facilities plan.
7 School districts shall apply to the State Board of Education
8 for school construction project grants and debt service
9 grants. Districts filing grant applications shall submit to
10 the State Board a district facilities plan that shall
11 include, but not be limited to, an assessment of present and
12 future district facility needs as required by present and
13 anticipated educational programming, the availability of
14 local financial resources including current revenues, fund
15 balances, and unused bonding capacity, a fiscal plan for
16 meeting present and anticipated debt service obligations, and
17 a maintenance plan and schedule that contain necessary
18 assurances that new, renovated, and existing facilities are
19 being or will be properly maintained. If a district that
20 applies for a school construction project grant has no unused
21 bonding capacity or if its unused bonding capacity may be
22 less than the portion of the cost of the proposed school
23 construction project that the district would be required to
24 finance with non-grant funds, the application and facilities
25 plan submitted by the district shall set forth the estimated
26 amount of the project's cost that the district proposes to
27 finance by the issuance of bonds under subsection (k) of
28 Section 19-1 of the School Code. The State Board of Education
29 shall review and approve district facilities plans prior to
30 issuing grant entitlements. Each district that receives a
31 grant entitlement shall annually update its district
32 facilities plan and submit the revised plan to the State
33 Board for approval.
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1 (Source: P.A. 90-548, eff. 1-1-98.)
2 (105 ILCS 230/5-25)
3 Sec. 5-25. Eligibility and project standards.
4 (a) The State Board of Education shall establish
5 eligibility standards for school construction project grants
6 and debt service grants. These standards shall not include
7 any minimum enrollment requirements for eligibility for
8 school construction project or debt service grants of 200
9 students for elementary districts, 200 students for high
10 school districts, and 400 students for unit districts. The
11 State Board of Education shall approve a district's
12 eligibility for a school construction project grant or a debt
13 service grant pursuant to the established standards.
14 (b) The Capital Development Board shall establish
15 project standards for all school construction project grants
16 provided pursuant to this Article. These standards shall
17 include space and capacity standards as well as the
18 determination of recognized project costs that shall be
19 eligible for State financial assistance and enrichment costs
20 that shall not be eligible for State financial assistance.
21 (Source: P.A. 90-548, eff. 1-1-98.)
22 (105 ILCS 230/5-53 new)
23 Sec. 5-53. Reorganization incentive grants.
24 (a) The State Board of Education shall award a
25 reorganization incentive grant to a school district as
26 provided in this Section if all of the conditions specified
27 in paragraphs (1) through (3) of this subsection are met:
28 (1) The Capital Development Board makes a grant for
29 a school construction project to the school district as
30 provided in this Article based in whole or in part upon
31 present or future school construction needs of the
32 district that are attributable to the annexation or
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1 anticipated annexation by the district of all of the
2 territory of another school district or that are
3 attributable to the district's organization or
4 anticipated organization as a community unit school
5 district under Article 11A of the School Code or to the
6 district's formation or anticipated formation as a
7 combined school district under Article 11B of the School
8 Code.
9 (2) The proceedings for such annexation,
10 organization, or formation are initiated by a petition
11 that is filed under applicable provisions of the School
12 Code on or after the effective date of this amendatory
13 Act of 1998.
14 (3) The annexation, organization, or formation
15 takes effect for all purposes (including the
16 administration of and attendance at the schools of the
17 district) not more than 2 years after the date on which
18 the district's grant for the school construction project
19 is made to the district by the Capital Development Board.
20 (b) A district's eligibility to receive a reorganization
21 incentive grant under the criteria established by subsection
22 (a) shall be determined by the State Board of Education. The
23 amount of the reorganization incentive grant shall be equal
24 to 25% of the dollar amount of the school construction
25 project's cost that the district is required to finance with
26 funds other than funds representing the amount of the grant
27 provided by the Capital Development Board to the district for
28 the school construction project. The State Board of
29 Education shall determine the amount of the reorganization
30 incentive grant that the district is to receive under this
31 Section.
32 (c) Reorganization incentive grants shall be made with
33 funds appropriated by the General Assembly from the School
34 Infrastructure Fund and shall be distributed to school
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1 districts within 60 days after the annexations,
2 reorganizations, or formations that qualify the districts to
3 receive the grants take effect for all purposes.
4 (d) No portion of a reorganization incentive grant
5 received by a school district shall be used by the district
6 for its on-going operational costs, but the district shall be
7 entitled to use the grant for any of its lawful capital
8 improvement purposes, including but not limited to those
9 capital improvements that form a part of the school
10 construction project for which the district received a grant
11 under this Article from the Capital Development Board.
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.
-19- LRB9008448THpk
1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 105/6z-45
4 105 ILCS 5/19-1 from Ch. 122, par. 19-1
5 105 ILCS 230/5-5
6 105 ILCS 230/5-15
7 105 ILCS 230/5-20
8 105 ILCS 230/5-25
9 105 ILCS 230/5-53 new