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Public Act 92-0547
HB5734 Enrolled LRB9214200LDtm
AN ACT in relation to education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Freedom of Information Act is amended by
changing Section 2 as follows:
(5 ILCS 140/2) (from Ch. 116, par. 202)
Sec. 2. Definitions. As used in this Act:
(a) "Public body" means any legislative, executive,
administrative, or advisory bodies of the State, state
universities and colleges, counties, townships, cities,
villages, incorporated towns, school districts and all other
municipal corporations, boards, bureaus, committees, or
commissions of this State, and any subsidiary bodies of any
of the foregoing including but not limited to committees and
subcommittees which are supported in whole or in part by tax
revenue, or which expend tax revenue, and a School Finance
Authority created under Article 1E of the School Code.
"Public body" does not include a child death review team or
the Illinois Child Death Review Teams Executive Council
established under the Child Death Review Team Act.
(b) "Person" means any individual, corporation,
partnership, firm, organization or association, acting
individually or as a group.
(c) "Public records" means all records, reports, forms,
writings, letters, memoranda, books, papers, maps,
photographs, microfilms, cards, tapes, recordings, electronic
data processing records, recorded information and all other
documentary materials, regardless of physical form or
characteristics, having been prepared, or having been or
being used, received, possessed or under the control of any
public body. "Public records" includes, but is expressly not
limited to: (i) administrative manuals, procedural rules,
and instructions to staff, unless exempted by Section 7(p) of
this Act; (ii) final opinions and orders made in the
adjudication of cases, except an educational institution's
adjudication of student or employee grievance or disciplinary
cases; (iii) substantive rules; (iv) statements and
interpretations of policy which have been adopted by a public
body; (v) final planning policies, recommendations, and
decisions; (vi) factual reports, inspection reports, and
studies whether prepared by or for the public body; (vii) all
information in any account, voucher, or contract dealing with
the receipt or expenditure of public or other funds of public
bodies; (viii) the names, salaries, titles, and dates of
employment of all employees and officers of public bodies;
(ix) materials containing opinions concerning the rights of
the state, the public, a subdivision of state or a local
government, or of any private persons; (x) the name of every
official and the final records of voting in all proceedings
of public bodies; (xi) applications for any contract, permit,
grant, or agreement except as exempted from disclosure by
subsection (g) of Section 7 of this Act; (xii) each report,
document, study, or publication prepared by independent
consultants or other independent contractors for the public
body; (xiii) all other information required by law to be made
available for public inspection or copying; (xiv) information
relating to any grant or contract made by or between a public
body and another public body or private organization; (xv)
waiver documents filed with the State Superintendent of
Education or the president of the University of Illinois
under Section 30-12.5 of the School Code, concerning nominees
for General Assembly scholarships under Sections 30-9, 30-10,
and 30-11 of the School Code; (xvi) complaints, results of
complaints, and Department of Children and Family Services
staff findings of licensing violations at day care
facilities, provided that personal and identifying
information is not released; and (xvii) records, reports,
forms, writings, letters, memoranda, books, papers, and other
documentary information, regardless of physical form or
characteristics, having been prepared, or having been or
being used, received, possessed, or under the control of the
Illinois Sports Facilities Authority dealing with the receipt
or expenditure of public funds or other funds of the
Authority in connection with the reconstruction, renovation,
remodeling, extension, or improvement of all or substantially
all of an existing "facility" as that term is defined in the
Illinois Sports Facilities Authority Act.
(d) "Copying" means the reproduction of any public
record by means of any photographic, electronic, mechanical
or other process, device or means.
(e) "Head of the public body" means the president,
mayor, chairman, presiding officer, director, superintendent,
manager, supervisor or individual otherwise holding primary
executive and administrative authority for the public body,
or such person's duly authorized designee.
(f) "News media" means a newspaper or other periodical
issued at regular intervals whether in print or electronic
format, a news service whether in print or electronic format,
a radio station, a television station, a television network,
a community antenna television service, or a person or
corporation engaged in making news reels or other motion
picture news for public showing.
(Source: P.A. 91-935, eff. 6-1-01; 92-335, eff. 8-10-01;
92-468, eff. 8-22-01; revised 10-10-01.)
Section 5. The Property Tax Code is amended by changing
Section 18-185 and adding Sections 18-190.5 and 18-241 as
follows:
(35 ILCS 200/18-185)
Sec. 18-185. Short title; definitions. This Division 5
may be cited as the Property Tax Extension Limitation Law.
As used in this Division 5:
"Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
"Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the
rate of increase approved by voters under Section 18-205.
"Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000
or more inhabitants.
"Taxing district" has the same meaning provided in
Section 1-150, except as otherwise provided in this Section.
For the 1991 through 1994 levy years only, "taxing district"
includes only each non-home rule taxing district having the
majority of its 1990 equalized assessed value within any
county or counties contiguous to a county with 3,000,000 or
more inhabitants. Beginning with the 1995 levy year, "taxing
district" includes only each non-home rule taxing district
subject to this Law before the 1995 levy year and each
non-home rule taxing district not subject to this Law before
the 1995 levy year having the majority of its 1994 equalized
assessed value in an affected county or counties. Beginning
with the levy year in which this Law becomes applicable to a
taxing district as provided in Section 18-213, "taxing
district" also includes those taxing districts made subject
to this Law as provided in Section 18-213.
"Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made
for any taxing district to pay interest or principal on
general obligation bonds issued before October 1, 1991; (c)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund those bonds
issued before October 1, 1991; (d) made for any taxing
district to pay interest or principal on bonds issued to
refund or continue to refund bonds issued after October 1,
1991 that were approved by referendum; (e) made for any
taxing district to pay interest or principal on revenue bonds
issued before October 1, 1991 for payment of which a property
tax levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before October 1, 1991, to pay for
the building project; (g) made for payments due under
installment contracts entered into before October 1, 1991;
(h) made for payments of principal and interest on bonds
issued under the Metropolitan Water Reclamation District Act
to finance construction projects initiated before October 1,
1991; (i) made for payments of principal and interest on
limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the
debt service extension base less the amount in items (b),
(c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (j) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (k) made by a school district that
participates in the Special Education District of Lake
County, created by special education joint agreement under
Section 10-22.31 of the School Code, for payment of the
school district's share of the amounts required to be
contributed by the Special Education District of Lake County
to the Illinois Municipal Retirement Fund under Article 7 of
the Illinois Pension Code; the amount of any extension under
this item (k) shall be certified by the school district to
the county clerk.
"Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except
taxing districts subject to this Law in accordance with
Section 18-213) means the annual corporate extension for the
taxing district and those special purpose extensions that are
made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to
pay interest or principal on general obligation bonds issued
before March 1, 1995; (c) made for any taxing district to pay
interest or principal on bonds issued to refund or continue
to refund those bonds issued before March 1, 1995; (d) made
for any taxing district to pay interest or principal on bonds
issued to refund or continue to refund bonds issued after
March 1, 1995 that were approved by referendum; (e) made for
any taxing district to pay interest or principal on revenue
bonds issued before March 1, 1995 for payment of which a
property tax levy or the full faith and credit of the unit of
local government is pledged; however, a tax for the payment
of interest or principal on those bonds shall be made only
after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the
retirement of bonds issued by the commission before March 1,
1995 to pay for the building project; (g) made for payments
due under installment contracts entered into before March 1,
1995; (h) made for payments of principal and interest on
bonds issued under the Metropolitan Water Reclamation
District Act to finance construction projects initiated
before October 1, 1991; (i) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum and bonds described in subsection (h) of this
definition; (j) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; (k) made for payments of principal and interest
on bonds authorized by Public Act 88-503 and issued under
Section 20a of the Chicago Park District Act for aquarium or
museum projects; and (l) made for payments of principal and
interest on bonds authorized by Public Act 87-1191 and issued
under Section 42 of the Cook County Forest Preserve District
Act for zoological park projects; and (m) made pursuant to
Section 34-53.5 of the School Code, whether levied annually
or not.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except
for those taxing districts subject to paragraph (2) of
subsection (e) of Section 18-213, means the annual corporate
extension for the taxing district and those special purpose
extensions that are made annually for the taxing district,
excluding special purpose extensions: (a) made for the taxing
district to pay interest or principal on general obligation
bonds that were approved by referendum; (b) made for any
taxing district to pay interest or principal on general
obligation bonds issued before the date on which the
referendum making this Law applicable to the taxing district
is held; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund
those bonds issued before the date on which the referendum
making this Law applicable to the taxing district is held;
(d) made for any taxing district to pay interest or principal
on bonds issued to refund or continue to refund bonds issued
after the date on which the referendum making this Law
applicable to the taxing district is held if the bonds were
approved by referendum after the date on which the referendum
making this Law applicable to the taxing district is held;
(e) made for any taxing district to pay interest or principal
on revenue bonds issued before the date on which the
referendum making this Law applicable to the taxing district
is held for payment of which a property tax levy or the full
faith and credit of the unit of local government is pledged;
however, a tax for the payment of interest or principal on
those bonds shall be made only after the governing body of
the unit of local government finds that all other sources for
payment are insufficient to make those payments; (f) made for
payments under a building commission lease when the lease
payments are for the retirement of bonds issued by the
commission before the date on which the referendum making
this Law applicable to the taxing district is held to pay for
the building project; (g) made for payments due under
installment contracts entered into before the date on which
the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (i) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (j) made for a qualified airport authority to
pay interest or principal on general obligation bonds issued
for the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to
such a contract taking effect on or after that date).
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of
subsection (e) of Section 18-213 means the annual corporate
extension for the taxing district and those special purpose
extensions that are made annually for the taxing district,
excluding special purpose extensions: (a) made for the taxing
district to pay interest or principal on general obligation
bonds that were approved by referendum; (b) made for any
taxing district to pay interest or principal on general
obligation bonds issued before the effective date of this
amendatory Act of 1997; (c) made for any taxing district to
pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the effective
date of this amendatory Act of 1997; (d) made for any taxing
district to pay interest or principal on bonds issued to
refund or continue to refund bonds issued after the effective
date of this amendatory Act of 1997 if the bonds were
approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to
pay interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of
which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the
retirement of bonds issued by the commission before the
effective date of this amendatory Act of 1997 to pay for the
building project; (g) made for payments due under installment
contracts entered into before the effective date of this
amendatory Act of 1997; (h) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (i) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (j) made for a qualified airport authority to
pay interest or principal on general obligation bonds issued
for the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to
such a contract taking effect on or after that date).
"Debt service extension base" means an amount equal to
that portion of the extension for a taxing district for the
1994 levy year, or for those taxing districts subject to this
Law in accordance with Section 18-213, except for those
subject to paragraph (2) of subsection (e) of Section 18-213,
for the levy year in which the referendum making this Law
applicable to the taxing district is held, or for those
taxing districts subject to this Law in accordance with
paragraph (2) of subsection (e) of Section 18-213 for the
1996 levy year, constituting an extension for payment of
principal and interest on bonds issued by the taxing district
without referendum, but not including (i) bonds authorized by
Public Act 88-503 and issued under Section 20a of the Chicago
Park District Act for aquarium and museum projects; (ii)
bonds issued under Section 15 of the Local Government Debt
Reform Act; or (iii) refunding obligations issued to refund
or to continue to refund obligations initially issued
pursuant to referendum. The debt service extension base may
be established or increased as provided under Section 18-212.
"Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant
to Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or
not. The extension for a special service area is not
included in the aggregate extension.
"Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-215 through 18-230.
"Levy year" has the same meaning as "year" under Section
1-155.
"New property" means (i) the assessed value, after final
board of review or board of appeals action, of new
improvements or additions to existing improvements on any
parcel of real property that increase the assessed value of
that real property during the levy year multiplied by the
equalization factor issued by the Department under Section
17-30 and (ii) the assessed value, after final board of
review or board of appeals action, of real property not
exempt from real estate taxation, which real property was
exempt from real estate taxation for any portion of the
immediately preceding levy year, multiplied by the
equalization factor issued by the Department under Section
17-30. In addition, the county clerk in a county containing
a population of 3,000,000 or more shall include in the 1997
recovered tax increment value for any school district, any
recovered tax increment value that was applicable to the 1995
tax year calculations.
"Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
"Recovered tax increment value" means, except as
otherwise provided in this paragraph, the amount of the
current year's equalized assessed value, in the first year
after a municipality terminates the designation of an area as
a redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or
previously established under the Economic Development Area
Tax Increment Allocation Act, of each taxable lot, block,
tract, or parcel of real property in the redevelopment
project area over and above the initial equalized assessed
value of each property in the redevelopment project area.
For the taxes which are extended for the 1997 levy year, the
recovered tax increment value for a non-home rule taxing
district that first became subject to this Law for the 1995
levy year because a majority of its 1994 equalized assessed
value was in an affected county or counties shall be
increased if a municipality terminated the designation of an
area in 1993 as a redevelopment project area previously
established under the Tax Increment Allocation Development
Act in the Illinois Municipal Code, previously established
under the Industrial Jobs Recovery Law in the Illinois
Municipal Code, or previously established under the Economic
Development Area Tax Increment Allocation Act, by an amount
equal to the 1994 equalized assessed value of each taxable
lot, block, tract, or parcel of real property in the
redevelopment project area over and above the initial
equalized assessed value of each property in the
redevelopment project area. In the first year after a
municipality removes a taxable lot, block, tract, or parcel
of real property from a redevelopment project area
established under the Tax Increment Allocation Development
Act in the Illinois Municipal Code, the Industrial Jobs
Recovery Law in the Illinois Municipal Code, or the Economic
Development Area Tax Increment Allocation Act, "recovered tax
increment value" means the amount of the current year's
equalized assessed value of each taxable lot, block, tract,
or parcel of real property removed from the redevelopment
project area over and above the initial equalized assessed
value of that real property before removal from the
redevelopment project area.
Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to
one plus the extension limitation defined in this Section and
the denominator of which is the current year's equalized
assessed value of all real property in the territory under
the jurisdiction of the taxing district during the prior levy
year. For those taxing districts that reduced their
aggregate extension for the last preceding levy year, the
highest aggregate extension in any of the last 3 preceding
levy years shall be used for the purpose of computing the
limiting rate. The denominator shall not include new
property. The denominator shall not include the recovered
tax increment value.
(Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97;
90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff.
7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)
(35 ILCS 200/18-190.5 new)
Sec. 18-190.5. School districts. The requirements of
Section 18-190 of this Code for a direct referendum on the
imposition of a new or increased tax rate do not apply to tax
levies that are not included in the aggregate extension for
those taxing districts to which this Law did not apply before
the 1995 levy year (except taxing districts subject to this
Law in accordance with Section 18-213 of this Code) pursuant
to clause (m) of Section 18-185 of this Code.
(35 ILCS 200/18-241 new)
Sec. 18-241. School Finance Authority.
(a) A School Finance Authority established under Article
1E of the School Code shall not be a taxing district for
purposes of this Law.
(b) This Law shall not apply to the extension of taxes
for a school district for the levy year in which a School
Finance Authority for the district is created pursuant to
Article 1E of the School Code.
Section 7. The Local Government Debt Limitation Act is
amended by adding Section 1.23 as follows:
(50 ILCS 405/1.23 new)
Sec. 1.23. Indebtedness of Downstate School Finance
Authority. The limitation prescribed in Section 1 of this Act
does not apply to any indebtedness of a School Finance
Authority created pursuant to Article 1E of the School Code.
Section 10. The School Code is amended by adding Article
1E and Section 34-53.5 as follows:
(105 ILCS 5/Art. 1E heading new)
ARTICLE 1E. DOWNSTATE SCHOOL FINANCE AUTHORITY
(105 ILCS 5/1E-1 new)
Sec. 1E-1. Short title. This Article may be cited as the
Downstate School Finance Authority Law.
(105 ILCS 5/1E-5 new)
Sec. 1E-5. Findings; purpose; intent.
(a) The General Assembly finds all of the following:
(1) A fundamental goal of the people of this State,
as expressed in Section 1 of Article X of the Illinois
Constitution, is the educational development of all
persons to the limits of their capacities. When a board
of education faces financial difficulties, continued
operation of the public school system is threatened.
(2) A sound financial structure is essential to the
continued operation of any school system. It is vital to
commercial, educational, and cultural interests that
public schools remain in operation. To achieve that goal,
public school systems must have effective access to the
private market to borrow short and long term funds.
(3) To promote the financial integrity of
districts, as defined in this Article, it is necessary to
provide for the creation of school finance authorities
with the powers necessary to promote sound financial
management and to ensure the continued operation of the
public schools.
(b) It is the purpose of this Article to provide a
secure financial basis for the continued operation of public
schools. The intention of the General Assembly, in creating
this Article, is to establish procedures, provide powers, and
impose restrictions to ensure the financial and educational
integrity of the public schools, while leaving principal
responsibility for the educational policies of public schools
to the boards of education within the State, consistent with
the requirements for satisfying the public policy and purpose
set forth in this Article.
(105 ILCS 5/1E-10 new)
Sec. 1E-10. Definitions. As used in this Article:
"Authority" means a School Finance Authority created
under this Article.
"Bonds" means bonds authorized to be issued by the
Authority under Section 1E-65 of this Code.
"Budget" means the annual budget of the district required
under Section 17-1 of this Code, as in effect from time to
time.
"Chairperson" means the Chairperson of the Authority.
"District" means any school district having a population
of not more than 500,000 that prior to the effective date of
this amendatory Act of the 92nd General Assembly has had a
Financial Oversight Panel established for the district under
Section 1B-4 of this Code following the district's
petitioning of the State Board of Education for the creation
of the Financial Oversight Panel and for which the Financial
Oversight Panel has been in existence for at least one year.
"Financial plan" means the financial plan of the district
to be developed pursuant to this Article, as in effect from
time to time.
"Fiscal year" means the fiscal year of the district.
"State Board" means the State Board of Education.
"State Superintendent" means the State Superintendent of
Education.
"Obligations" means bonds and notes of the Authority.
(105 ILCS 5/1E-15 new)
Sec. 1E-15. Establishment of Authority; duties of
district.
(a) A Financial Oversight Panel created under Article 1B
of this Code for a district may petition the State Board for
the establishment of a School Finance Authority for the
district. The petition shall cite the reasons why the
creation of a School Finance Authority for the district is
necessary. The State Board may grant the petition upon
determining that the approval of the petition is in the best
educational and financial interests of the district.
(b) Upon approval of the petition by the State Board all
of the following shall occur:
(1) There is established a body both corporate and
politic to be known as the "(Name of School District)
School Finance Authority", which in this name shall
exercise all authority vested in an Authority by this
Article.
(2) The Financial Oversight Panel is abolished, and
all of its rights, property, assets, contracts, and
liabilities shall pass to and be vested in the Authority.
(3) The duties and obligations of the district
under Article 1B of this Code shall be transferred and
become duties and obligations owed by the district to the
School Finance Authority.
(c) In the event of a conflict between the provisions of
this Article and the provisions of Article 1B of this Code,
the provisions of this Article control.
(105 ILCS 5/1E-20 new)
Sec. 1E-20. Members of Authority; meetings.
(a) When a petition for a School Finance Authority is
allowed by the State Board under Section 1E-15 of this Code,
the State Superintendent shall within 10 days thereafter
appoint 5 members to serve on a School Finance Authority for
the district. Of the initial members, 2 shall be appointed to
serve a term of 2 years and 3 shall be appointed to serve a
term of 3 years. Thereafter, each member shall serve for a
term of 3 years and until his or her successor has been
appointed. The State Superintendent shall designate one of
the members of the Authority to serve as its Chairperson. In
the event of vacancy or resignation, the State Superintendent
shall, within 10 days after receiving notice, appoint a
successor to serve out that member's term. The State
Superintendent may remove a member for incompetence,
malfeasance, neglect of duty, or other just cause.
Members of the Authority shall be selected primarily on
the basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. Two members of the Authority shall be
residents of the school district that the Authority serves. A
member of the Authority may not be a member of the district's
school board or an employee of the district nor may a member
have a direct financial interest in the district.
Authority members shall serve without compensation, but
may be reimbursed by the State Board for travel and other
necessary expenses incurred in the performance of their
official duties. Unless paid from bonds issued under Section
1E-65 of this Code, the amount reimbursed members for their
expenses shall be charged to the school district as part of
any emergency financial assistance and incorporated as a part
of the terms and conditions for repayment of the assistance
or shall be deducted from the district's general State aid as
provided in Section 1B-8 of this Code.
The Authority may elect such officers as it deems
appropriate.
(b) The first meeting of the Authority shall be held at
the call of the Chairperson. The Authority shall prescribe
the times and places for its meetings and the manner in which
regular and special meetings may be called and shall comply
with the Open Meetings Act.
Three members of the Authority shall constitute a quorum.
When a vote is taken upon any measure before the Authority, a
quorum being present, a majority of the votes of the members
voting on the measure shall determine the outcome.
(105 ILCS 5/1E-25 new)
Sec. 1E-25. General powers. The purposes of the Authority
shall be to exercise financial control over the district and
to furnish financial assistance so that the district can
provide public education within the district's jurisdiction
while permitting the district to meet its obligations to its
creditors and the holders of its debt. Except as expressly
limited by this Article, the Authority shall have all powers
granted to a voluntary or involuntary Financial Oversight
Panel and to a Financial Administrator under Article 1B of
this Code and all other powers necessary to meet its
responsibilities and to carry out its purposes and the
purposes of this Article, including without limitation all of
the following powers, provided that the Authority shall have
no power to violate any statutory provision, to impair any
contract or obligation of the district, or to terminate any
employee without following the statutory procedures for such
terminations set forth in this Code:
(1) To sue and to be sued.
(2) To make and execute contracts, leases,
subleases and all other instruments or agreements
necessary or convenient for the exercise of the powers
and functions granted by this Article.
(3) To purchase real or personal property necessary
or convenient for its purposes; to execute and deliver
deeds for real property held in its own name; and to
sell, lease, or otherwise dispose of such of its property
as, in the judgment of the Authority, is no longer
necessary for its purposes.
(4) To appoint officers, agents, and employees of
the Authority, including a chief executive officer, a
chief fiscal officer, and a chief educational officer; to
define their duties and qualifications; and to fix their
compensation and employee benefits.
(5) To transfer to the district such sums of money
as are not required for other purposes.
(6) To borrow money and to issue obligations
pursuant to this Article; to fund, refund, or advance
refund the same; to provide for the rights of the holders
of its obligations; and to repay any advances.
(7) Subject to the provisions of any contract with
or for the benefit of the holders of its obligations, to
purchase or redeem its obligations.
(8) To procure all necessary goods and services for
the Authority in compliance with the purchasing laws and
requirements applicable to the district.
(9) To do any and all things necessary or
convenient to carry out its purposes and exercise the
powers given to it by this Article.
(105 ILCS 5/1E-30 new)
Sec. 1E-30. Chief executive officer. The Authority may
appoint a chief executive officer who, under the direction of
the Authority, shall supervise the Authority's staff,
including the chief educational officer and the chief fiscal
officer, and shall have ultimate responsibility for
implementing the policies, procedures, directives, and
decisions of the Authority.
(105 ILCS 5/1E-35 new)
Sec. 1E-35. Chief educational officer. Upon expiration of
the contract of the school district's superintendent who is
serving at the time the Authority is established, the
Authority shall, following consultation with the district,
employ a chief educational officer for the district. The
chief educational officer shall report to the Authority or
the chief executive officer appointed by the Authority.
The chief educational officer shall have all of the
powers and duties of a school district superintendent under
this Code and such other duties as may be assigned by the
Authority, in accordance with this Code. The district shall
not thereafter employ a superintendent during the period that
a chief educational officer is serving in the district. The
chief educational officer shall hold a certificate with a
superintendent endorsement issued under Article 21 of this
Code.
(105 ILCS 5/1E-40 new)
Sec. 1E-40. Chief fiscal officer. The Authority may
appoint a chief fiscal officer who, under the direction of
the Authority, shall have all of the powers and duties of the
district's chief school business official and any other
duties regarding budgeting, accounting, and other financial
matters that are assigned by the Authority, in accordance
with this Code. The district may not employ a chief school
business official during the period that the chief fiscal
officer is serving in the district. The chief fiscal officer
may but is not required to hold a certificate with a chief
school business official endorsement issued under Article 21
of this Code.
(105 ILCS 5/1E-45 new)
Sec. 1E-45. Collective bargaining agreements. The
Authority shall have the power to negotiate collective
bargaining agreements with the district's employees in lieu
of and on behalf of the district. Upon concluding bargaining,
the district shall execute the agreements negotiated by the
Authority, and the district shall be bound by and shall
administer the agreements in all respects as if the
agreements had been negotiated by the district itself.
(105 ILCS 5/1E-50 new)
Sec. 1E-50. Deposits and investments.
(a) The Authority shall have the power to establish
checking and whatever other banking accounts it may deem
appropriate for conducting its affairs.
(b) Subject to the provisions of any contract with or
for the benefit of the holders of its obligations, the
Authority may invest any funds not required for immediate use
or disbursement, as provided in the Public Funds Investment
Act.
(105 ILCS 5/1E-55 new)
Sec. 1E-55. Cash accounts and bank accounts.
(a) The Authority shall require the district or any
officer of the district, including the district's treasurer,
to establish and maintain separate cash accounts and separate
bank accounts in accordance with such rules, standards, and
procedures as the Authority may prescribe.
(b) The Authority shall have the power to assume
exclusive administration of the cash accounts and bank
accounts of the district, to establish and maintain whatever
new cash accounts and bank accounts it may deem appropriate,
and to withdraw funds from these accounts for the lawful
expenditures of the district.
(105 ILCS 5/1E-60 new)
Sec. 1E-60. Financial, management, and budgetary
structure. Upon direction of the Authority, the district
shall reorganize the financial accounts, management, and
budgetary systems of the district in whatever manner the
Authority deems appropriate to achieve greater financial
responsibility and to reduce financial inefficiency.
(105 ILCS 5/1E-65 new)
Sec. 1E-65. Power to issue bonds.
(a) The Authority may incur indebtedness by the issuance
of negotiable full faith and credit general obligation bonds
of the Authority in an outstanding amount not to exceed at
any time, including existing indebtedness, 13.8% of the
district's most recent equalized assessed valuation,
excluding Bonds of the Authority that have been refunded, for
(i) the purpose of providing the district with moneys for
ordinary and necessary expenditures and other operational
needs of the district; (ii) payment or refunding of
outstanding debt obligations or tax anticipation warrants of
the district, the proceeds of which were used to provide
financing for the district; (iii) payment of fees for
arrangements as provided in subsection (b) of Section 1E-70
of this Code; (iv) payment of interest on Bonds; (v)
establishment of reserves to secure Bonds; (vi) the payment
of costs of issuance of Bonds; (vii) payment of principal of
or interest or redemption premium on any Bonds or notes of
the Authority; and (viii) all other expenditures of the
Authority incidental to and necessary or convenient for
carrying out its corporate purposes and powers.
(b) The Authority may from time to time (i) issue Bonds
to refund any outstanding Bonds or notes of the Authority,
whether the Bonds or notes to be refunded have or have not
matured or become redeemable, and (ii) issue Bonds partly to
refund Bonds or notes then outstanding and partly for any
other purpose set forth in this Section.
(c) Bonds issued in accordance with subsection (a) of
this Section are not subject to any other statutory
limitation as to debt, including without limitation that
established by the Local Government Debt Limitation Act, and
may be issued without referendum.
(105 ILCS 5/1E-70 new)
Sec. 1E-70. Terms of bonds.
(a) Whenever the Authority desires or is required to
issue Bonds as provided in this Article, it shall adopt a
resolution designating the amount of the Bonds to be issued,
the purposes for which the proceeds of the Bonds are to be
used, and the manner in which the proceeds shall be held
pending the application thereof. The Bonds shall be issued in
the corporate name of the Authority and shall bear such date
or dates and shall mature at such time or times, not
exceeding 20 years from their date, as the resolution may
provide. The Bonds may be issued as serial bonds payable in
installments, as term bonds with sinking fund installments,
or as a combination of these as the Authority may determine
in the resolution. The Bonds shall be in such denominations
as the Authority may determine. The Bonds shall be in such
form, carry such registration privileges, be executed in such
manner, be payable at such place or places, and be subject to
such terms of redemption at such redemption prices, including
premium, as the resolution may provide. The Bonds shall be
sold by the Authority at public or private sale, as
determined by the Authority.
(b) In connection with the issuance of its Bonds, the
Authority may enter into arrangements to provide additional
security and liquidity for the Bonds. These may include
without limitation municipal bond insurance, letters of
credit, lines of credit by which the Authority may borrow
funds to pay or redeem its Bonds, and purchase or remarketing
arrangements for ensuring the ability of owners of the
Authority's Bonds to sell their Bonds or to have their Bonds
redeemed. The Authority may enter into contracts and may
agree to pay fees to persons providing the arrangements,
including from Bond proceeds, but only under circumstances in
which the total interest paid or to be paid on the Bonds,
together with the fees for the arrangements (being treated as
if interest), would not, taken together, cause the Bonds to
bear interest, calculated to their absolute maturity, at a
rate in excess of the maximum rate allowed by law.
The resolution of the Authority authorizing the issuance
of its Bonds may provide that interest rates may vary from
time to time depending upon criteria established by the
Authority, which may include without limitation a variation
in interest rates as may be necessary to cause the Bonds to
be remarketable from time to time at a price equal to their
principal amount, and may provide for appointment of a
national banking association, bank, trust company, investment
banker, or other financial institution to serve as a
remarketing agent in that connection. The resolution of the
Authority authorizing the issuance of its Bonds may provide
that alternative interest rates or provisions shall apply
during such times as the Bonds are held by a person providing
a letter of credit or other credit enhancement arrangement
for those Bonds.
(105 ILCS 5/1E-75 new)
Sec. 1E-75. Tax levy.
(a) Before or at the time of issuing any Bonds, the
Authority shall provide by resolution for the levy and
collection of a direct annual tax upon all the taxable
property located within the district without limit as to rate
or amount sufficient to pay and discharge the principal
thereof at maturity or on sinking fund installment dates and
to pay the interest thereon as it falls due. The taxes as
levied shall also include additional amounts to the extent
that the collections in the prior years were insufficient to
pay and discharge the principal thereof at maturity, sinking
fund installments, if any, and interest thereon as it fell
due, and the amount so collected shall be placed in the debt
service reserve fund. The tax shall be in addition to and
exclusive of the maximum of all taxes that the Authority or
the district is authorized by law to levy for any and all
school purposes. The resolution shall be in force upon its
adoption.
(b) The levy shall be for the sole benefit of the
holders of the Bonds, and the holders of the Bonds shall have
a security interest in and lien upon all rights, claims, and
interests of the Authority arising pursuant to the levy and
all present and future proceeds of the levy until the
principal of and sinking fund installments and interest on
the Bonds are paid in full. All proceeds from the levy shall
be deposited by each county collector directly in the debt
service fund established pursuant to Section 1E-80 of this
Code, shall be applied solely for the payment of principal of
and sinking fund installments and interest on the Bonds, and
shall not be used for any other purpose.
(c) Upon the filing in the office of the county clerk of
each county where the school district is located of a duly
certified copy of the resolution, it shall be the duty of
each county clerk to extend the tax provided for in the
resolution, including an amount determined by the Authority
to cover loss and cost of collection and also deferred
collections and abatements in the amount of the taxes as
extended on the collectors' books. The tax shall be separate
and apart from all other taxes of the Authority or the
district and shall be separately identified by the
collectors.
(105 ILCS 5/1E-80 new)
Sec. 1E-80. Debt service fund. The Authority shall
establish a debt service fund for the Bonds to be maintained
by a paying agent, escrow agent, depository, or corporate
trustee, which may be any trust company or bank having the
power of a trust company within this State, separate and
segregated from all other funds and accounts of the Authority
and the district. All moneys on deposit in the debt service
fund shall be held in trust in the debt service fund for the
benefit of the holders of the Bonds, shall be applied solely
for the payment of the principal of and sinking fund
installment, redemption premium, if any, and interest on the
Bonds, and shall not be used for any other purpose. The
holders of the Bonds shall have a security interest in and
lien upon all such moneys.
(105 ILCS 5/1E-85 new)
Sec. 1E-85. Debt service reserve fund.
(a) The Authority may create and establish a debt
service reserve fund to be maintained by a paying agent,
escrow agent, depository, or corporate trustee, which may be
any trust company or bank having the power of a trust company
within the State, separate and segregated from all other
funds and accounts of the Authority. The Authority may pay
the following into the debt service reserve fund:
(1) any proceeds from the sale of Bonds to the
extent provided in the resolution authorizing the
issuance of the Bonds; and
(2) any other moneys that may be available to the
Authority for the purpose of the fund.
(b) The amount to be accumulated in the debt service
reserve fund shall be determined by the Authority but shall
not exceed the maximum amount of interest, principal, and
sinking fund installments due in any succeeding calendar
year.
(c) All moneys on deposit in the debt service reserve
fund shall be held in trust for the benefit of the holders of
the Bonds, shall be applied solely for the payment of
principal of and sinking fund installments and interest on
the Bonds to the extent not paid from the debt service fund,
and shall not be used for any other purpose.
(d) Any moneys in the debt service reserve fund in
excess of the amount determined by the Authority pursuant to
a resolution authorizing the issuance of Bonds may be
withdrawn by the Authority and used for any of its lawful
purposes.
(e) In computing the amount of the debt service reserve
fund, investments shall be valued as the Authority provides
in the resolution authorizing the issuance of the Bonds.
(105 ILCS 5/1E-90 new)
Sec. 1E-90. Bond anticipation notes.
(a) After the issuance of Bonds has been authorized, the
Authority shall have power to issue from time to time,
pursuant to a resolution or resolutions of the Authority,
negotiable bond anticipation notes of the Authority in
anticipation of the issuance of Bonds.
(b) Bond anticipation notes shall mature not later than
2 years after the date of issuance, may be made redeemable
prior to their maturity, and may be sold in such manner, in
such denominations, and at such price or prices and shall
bear interest at such rate or rates not to exceed the maximum
annual rate authorized by law, as a resolution authorizing
the issuance of the bond anticipation notes may provide.
(c) The bond anticipation notes may be made payable as
to both principal and interest from the proceeds of the
Bonds. The Authority may provide for payment of interest on
the bond anticipation notes from direct annual taxes upon all
the taxable property located within the district that are
authorized to be levied annually for that purpose without
limit as to rate or amount sufficient to pay the interest as
it falls due, in the manner, subject to the security interest
and lien, and with the effect provided in Section 1E-75 of
this Code.
(d) The Authority is authorized to issue renewal notes
in the event it is unable to issue Bonds to pay outstanding
bond anticipation notes, on terms the Authority deems
reasonable.
(e) A debt service fund shall be established in the
manner provided in Section 1E-80 of this Code by the
Authority for the bond anticipation notes, and the proceeds
of any tax levy made pursuant to this Section shall be
deposited in the fund upon receipt.
(105 ILCS 5/1E-95 new)
Sec. 1E-95. Vesting powers in trustee or other authorized
agent. The resolution authorizing issuance of the Bonds shall
vest in a trustee, paying agent, escrow agent, or depository
such rights, powers, and duties in trust as the Authority may
determine and may contain such provisions for protecting and
enforcing the rights and remedies of the holders of the Bonds
and limiting such rights and remedies as may be reasonable
and proper and not in violation of law, including covenants
setting forth the duties of the Authority in relation to the
exercise of its corporate powers and the custody,
safeguarding, and application of all moneys. The resolution
shall provide for the manner in which moneys in the various
funds and accounts of the Authority may be invested and the
disposition of the earnings on the investments.
(105 ILCS 5/1E-100 new)
Sec. 1E-100. Discharge of bonds.
(a) If the Authority pays or causes to be paid to the
holders of all Bonds then outstanding the principal,
redemption price, if any, and interest to become due on the
Bonds, at the times and in the manner stipulated therein and
in the resolution authorizing the issuance of the Bonds, then
the covenants, agreements, and other obligations of the
Authority to the Bondholders shall be discharged and
satisfied.
(b) Bonds or interest installments for the payment or
redemption of which moneys have been set aside and held in
trust by the trustee or other authorized agent provided for
in Section 1E-95 of this Code, through deposit by the
Authority of funds for the payment, redemption, or otherwise,
at the maturity or redemption date, are deemed to have been
paid within the meaning and with the effect expressed in
subsection (a) of this Section. All outstanding Bonds of any
series, prior to the maturity or redemption date, are deemed
to have been paid within the meaning and with the effect
expressed in subsection (a) of this Section if (1) there has
been deposited with the trustee or other authorized agent
either (A) moneys in an amount that is sufficient or (B)
direct obligations of the United States of America the
principal of and the interest on which, when due, will
provide moneys that, together with the moneys, if any,
deposited with the trustee or other authorized agent at the
same time, are sufficient to pay, when due, the principal,
sinking fund installment, or redemption price, if applicable,
of and interest due and to become due on the Bonds on and
prior to the redemption date, sinking fund installment date,
or maturity date, as the case may be, and (2) the Authority
has given the trustee or other authorized agent, in form
satisfactory to it, irrevocable instructions to give notice
to the effect and in accordance with the procedures provided
in the resolution authorizing the issuance of the Bonds.
Neither direct obligations of the United States of America,
moneys deposited with the trustee or other authorized agent,
or principal or interest payments on the securities shall be
withdrawn or used for any purpose other than, and shall be
held in trust for, the payment of the principal or redemption
price, if applicable, and interest on the Bonds.
(105 ILCS 5/1E-105 new)
Sec. 1E-105. Pledge of the State. The State of Illinois
pledges to and agrees with the holders of Bonds that the
State will not limit or alter the rights and powers vested in
the Authority by this Article with respect to the issuance of
obligations so as to impair the terms of any contract made by
the Authority with these holders or in any way impair the
rights and remedies of these holders until the Bonds,
together with interest on the Bonds, interest on any unpaid
installments of interest, and all costs and expenses in
connection with any action or proceedings by or on behalf of
these holders, are fully met and discharged or provisions
made for their payment. The Authority is authorized to
include this pledge and agreement of the State in any
resolution or contract with the holders of Bonds.
(105 ILCS 5/1E-110 new)
Sec. 1E-110. Statutory lien. Any pledge, assignment,
lien, or security interest for the benefit of the holders of
Bonds or bond anticipation notes, if any, created pursuant to
this Article are valid and binding from the time the Bonds
are issued, without any physical delivery or further act, and
are valid and binding as against and prior to any claims of
all other parties having claims of any kind in tort,
contract, or otherwise against the State, the Authority, the
district, or any other person, irrespective of whether the
other parties have notice.
(105 ILCS 5/1E-115 new)
Sec. 1E-115. State or district not liable on obligations.
Obligations shall not be deemed to constitute (i) a debt or
liability of the State, the district, or any political
subdivision of the State or district other than the Authority
or (ii) a pledge of the full faith and credit of the State,
the district, or any political subdivision of the State or
district other than the Authority but shall be payable solely
from the funds and revenues provided for in this Article. The
issuance of obligations shall not directly, indirectly, or
contingently obligate the State, the district, or any
political subdivision of the State or district other than the
Authority to levy any form of taxation therefor or to make
any appropriation for their payment. Nothing in this Section
shall prevent or be construed to prevent the Authority from
pledging its full faith and credit to the payment of
obligations. Nothing in this Article shall be construed to
authorize the Authority to create a debt of the State or the
district within the meaning of the Constitution or laws of
Illinois, and all obligations issued by the Authority
pursuant to the provisions of this Article are payable and
shall state that they are payable solely from the funds and
revenues pledged for their payment in accordance with the
resolution authorizing their issuance or any trust indenture
executed as security therefor. The State or the district
shall not in any event be liable for the payment of the
principal of or interest on any obligations of the Authority
or for the performance of any pledge, obligation, or
agreement of any kind whatsoever that may be undertaken by
the Authority. No breach of any such pledge, obligation, or
agreement may impose any liability upon the State or the
district or any charge upon their general credit or against
their taxing power.
(105 ILCS 5/1E-120 new)
Sec. 1E-120. Obligations as legal investments. The
obligations issued under the provisions of this Article are
hereby made securities in which all public officers and
bodies of this State, all political subdivisions of this
State, all persons carrying on an insurance business, all
banks, bankers, trust companies, saving banks, and savings
associations (including savings and loan associations,
building and loan associations, investment companies, and
other persons carrying on a banking business), and all credit
unions, pension funds, administrators, and guardians who are
or may be authorized to invest in bonds or in other
obligations of the State may properly and legally invest
funds, including capital, in their control or belonging to
them. The obligations are also hereby made securities that
may be deposited with and may be received by all public
officers and bodies of the State, all political subdivisions
of the State, and public corporations for any purpose for
which the deposit of bonds or other obligations of the State
is authorized.
(105 ILCS 5/1E-125 new)
Sec. 1E-125. Complete authority. This Article, without
reference to any other law, shall be deemed full and complete
authority for the issuance of Bonds and bond anticipation
notes as provided in this Article.
(105 ILCS 5/1E-130 new)
Sec. 1E-130. Reports.
(a) The Authority, upon taking office and annually
thereafter, shall prepare and submit to the Governor, General
Assembly, and State Superintendent a report that includes the
audited financial statement for the preceding fiscal year, an
approved financial plan, and a statement of the major steps
necessary to accomplish the objectives of the financial plan.
(b) Annual reports shall be submitted on or before March
1 of each year.
(c) The requirement for reporting to the General
Assembly shall be satisfied by filing copies of the report as
provided in Section 3.1 of the General Assembly Organization
Act and by filing additional copies with the State Government
Report Distribution Center for the General Assembly as
required under subdivision (t) of Section 7 of the State
Library Act.
(105 ILCS 5/1E-135 new)
Sec. 1E-135. Audit of Authority. The Authority shall be
subject to audit in the manner provided for the audit of
State funds and accounts. A copy of the audit report shall be
submitted to the State Superintendent, the Governor, the
Speaker and Minority Leader of the House of Representatives,
and the President and Minority Leader of the Senate.
(105 ILCS 5/1E-140 new)
Sec. 1E-140. Assistance by State agencies, units of local
government, and school districts. The district shall render
such services to and permit the use of its facilities and
resources by the Authority at no charge as may be requested
by the Authority. Any State agency, unit of local government,
or school district may, within its lawful powers and duties,
render such services to the Authority as may be requested by
the Authority. Upon request of the Authority, any State
agency, unit of local government, or school district is
authorized and empowered to loan to the Authority such
officers and employees as the Authority may deem necessary in
carrying out its functions and duties. Officers and employees
so transferred shall not lose or forfeit their employment
status or rights.
(105 ILCS 5/1E-145 new)
Sec. 1E-145. Property of Authority exempt from taxation.
The property of the Authority is exempt from taxation.
(105 ILCS 5/1E-150 new)
Sec. 1E-150. Sanctions.
(a) No member, officer, employee, or agent of the
district may commit the district to any contract or other
obligation or incur any liability on behalf of the district
for any purpose if the amount of the contract, obligation, or
liability is in excess of the amount authorized for that
purpose then available under the financial plan and budget
then in effect.
(b) No member, officer, employee, or agent of the
district may commit the district to any contract or other
obligation on behalf of the district for the payment of money
for any purpose required to be approved by the Authority
unless the contract or other obligation has been approved by
the Authority.
(c) No member, officer, employee, or agent of the
district may take any action in violation of any valid order
of the Authority, may fail or refuse to take any action
required by any such order, may prepare, present, certify, or
report any information, including any projections or
estimates, for the Authority or any of its agents that is
false or misleading, or, upon learning that any such
information is false or misleading, may fail promptly to
advise the Authority or its agents.
(d) In addition to any penalty or liability under any
other law, any member, officer, employee, or agent of the
district who violates subsection (a), (b), or (c) of this
Section is subject to appropriate administrative discipline
as may be imposed by the Authority, including, if warranted,
suspension from duty without pay, removal from office, or
termination of employment.
(105 ILCS 5/1E-155 new)
Sec. 1E-155. Abolition of Authority. The Authority shall
be abolished 10 years after its creation or one year after
all its obligations issued under the provisions of this
Article have been fully paid and discharged, whichever comes
later. However, the State Board, upon recommendation of the
Authority and if no obligations are outstanding, may abolish
the Authority at any time after the Authority has been in
existence for 3 years. Upon the abolition of the Authority,
all of its records shall be transferred to the State Board
and any property of the Authority shall pass to and be vested
in the State Board.
(105 ILCS 5/1E-160 new)
Sec. 1E-160. Limitations of actions after abolition;
indemnification; legal representation.
(a) Abolition of the Authority pursuant to Section
1E-155 of this Code shall bar any remedy available against
the Authority, its members, employees, or agents for any
right or claim existing or any liability incurred prior to
the abolition unless the action or other proceeding is
commenced prior to the expiration of 2 years after the date
of the abolition.
(b) The Authority may indemnify any member, officer,
employee, or agent who was or is a party or is threatened to
be made a party to any threatened, pending, or completed
action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, by reason of the fact that
he or she was a member, officer, employee, or agent of the
Authority, against expenses (including attorney's fees,
judgments, fines, and amounts paid in settlement actually and
reasonably incurred by him or her in connection with the
action, suit, or proceeding) if he or she acted in good faith
and in a manner that he or she reasonably believed to be in
or not opposed to the best interests of the Authority and,
with respect to any criminal action or proceeding, had no
reasonable cause to believe his or her conduct was unlawful.
The termination of any action, suit, or proceeding by
judgment, order, settlement, or conviction or upon a plea of
nolo contendere or its equivalent, shall not, of itself,
create a presumption that the person did not act in good
faith in a manner that he or she reasonably believed to be in
or not opposed to the best interest of the Authority and,
with respect to any criminal action or proceeding, had
reasonable cause to believe that his or her conduct was
unlawful.
To the extent that a member, officer, employee, or agent
of the Authority has been successful, on the merits or
otherwise, in the defense of any such action, suit, or
proceeding referred to in this subsection (b) or in defense
of any claim, issue, or matter therein, he or she shall be
indemnified against expenses, including attorney's fees,
actually and reasonably incurred by him or her in connection
therewith. Any such indemnification shall be made by the
Authority only as authorized in the specific case, upon a
determination that indemnification of the member, officer,
employee, or agent is proper in the circumstances because he
or she has met the applicable standard of conduct. The
determination shall be made (i) by the Authority by a
majority vote of a quorum consisting of members who are not
parties to the action, suit, or proceeding or (ii) if such a
quorum is not obtainable or, even if obtainable, a quorum of
disinterested members so directs, by independent legal
counsel in a written opinion.
Reasonable expenses incurred in defending an action,
suit, or proceeding shall be paid by the Authority in advance
of the final disposition of the action, suit, or proceeding,
as authorized by the Authority in the specific case, upon
receipt of an undertaking by or on behalf of the member,
officer, employee, or agent to repay the amount, unless it is
ultimately determined that he or she is entitled to be
indemnified by the Authority as authorized in this Section.
Any member, officer, employee, or agent against whom any
action, suit, or proceeding is brought may employ his or her
own attorney to appear on his or her behalf.
The right to indemnification accorded by this Section
shall not limit any other right to indemnification to which
the member, officer, employee, or agent may be entitled. Any
rights under this Section shall inure to the benefit of the
heirs, executors, and administrators of any member, officer,
employee, or agent of the Authority.
The Authority may purchase and maintain insurance on
behalf of any person who is or was a member, officer,
employee, or agent of the Authority against any liability
asserted against him or her and incurred by him or her in any
such capacity or arising out of his or her status as such,
whether or not the Authority would have the power to
indemnify him or her against the liability under the
provisions of this Section.
The Authority shall be considered a State agency for
purposes of receiving representation by the Attorney General.
Members, officers, employees, and agents of the Authority
shall be entitled to representation and indemnification under
the State Employee Indemnification Act.
(105 ILCS 5/34-53.5 new)
Sec. 34-53.5. Capital improvement tax levy; purpose;
maximum amount.
(a) For the purpose of providing a reliable source of
revenue for capital improvement purposes, including without
limitation (i) the construction and equipping of a new school
building or buildings or an addition or additions to an
existing school building or buildings, (ii) the purchase of
school grounds on which any new school building or an
addition to an existing school building is to be constructed
or located, (iii) both items (i) and (ii) of this subsection
(a), or (iv) the rehabilitation, renovation, and equipping of
an existing school building or buildings, the board may levy,
upon all taxable property of the school district, in calendar
year 2003, a capital improvement tax to produce, when
extended, an amount not to exceed the product attained by
multiplying (1) the percentage increase, if any, in the
Consumer Price Index for All Urban Consumers for all items
published by the United States Department of Labor for the 12
months ending 2 months prior to the month in which the levy
is adopted by (2) $142,500,000. For example, if the
percentage increase in the Consumer Price Index is 2.5%, then
the computation would be $142,500,000 x 0.025 = $3,562,500.
(b) In each calendar year from 2004 through 2030, the
board may levy a capital improvement tax to produce, when
extended, an amount not to exceed the sum of (1) the maximum
amount that could have been levied by the board in the
preceding calendar year pursuant to this Section and (2) the
product obtained by multiplying (A) the sum of (i) the
maximum amount that could have been levied by the board in
the preceding calendar year pursuant to this Section and (ii)
$142,500,000 by (B) the percentage increase, if any, in the
Consumer Price Index for All Urban Consumers for all items
published by the United States Department of Labor for the 12
months ending 2 months prior to the month in which the levy
is adopted.
(c) In calendar year 2031, the board may levy a capital
improvement tax to produce, when extended, an amount not to
exceed the sum of (1) the maximum amount that could have been
levied by the board in calendar year 2030 pursuant to this
Section, (2) $142,500,000, and (3) the product obtained by
multiplying (A) the sum of (i) the maximum amount that could
have been levied by the board in calendar year 2030 pursuant
to this Section and (ii) $142,500,000 by (B) the percentage
increase, if any, in the Consumer Price Index for All Urban
Consumers for all items published by the United States
Department of Labor for the 12 months ending 2 months prior
to the month in which the levy is adopted.
(d) In calendar year 2032 and each calendar year
thereafter, the board may levy a capital improvement tax to
produce, when extended, an amount not to exceed the sum of
(1) the maximum amount that could have been levied by the
board in the preceding calendar year pursuant to this Section
and (2) the product obtained by multiplying (A) the maximum
amount that could have been levied by the board in the
preceding calendar year pursuant to this Section by (B) the
percentage increase, if any, in the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor for the 12 months ending 2 months
prior to the month in which the levy is adopted.
(e) An initial tax levy made by the board under this
Section must have the approval of the Chicago City Council,
by resolution, before the levy may be extended. The board
shall communicate its adoption of the initial tax levy by
delivering a certified copy of the levy resolution to the
Clerk of the City of Chicago. The Chicago City Council shall
have 60 days after receipt, by the Clerk of the City of
Chicago, of the certified resolution to approve or disapprove
the levy. The failure of the Chicago City Council to take
action to approve or disapprove the initial tax levy within
the 60-day period shall be deemed disapproval of the initial
tax levy. Upon the adoption of each subsequent levy by the
board under this Section, the board must notify the Chicago
City Council that the board has adopted the levy.
(f) The board may issue bonds, in accordance with the
Local Government Debt Reform Act, including Section 15 of
that Act, against any revenues to be collected from the
capital improvement tax in any year or years and may pledge,
pursuant to Section 13 of the Local Government Debt Reform
Act, those revenues as security for the payment of any such
bonds.
Section 15. The Illinois Educational Labor Relations Act
is amended by changing Section 2 as follows:
(115 ILCS 5/2) (from Ch. 48, par. 1702)
Sec. 2. Definitions. As used in this Act:
(a) "Educational employer" or "employer" means the
governing body of a public school district, combination of
public school districts, including the governing body of
joint agreements of any type formed by 2 or more school
districts, public community college district or State college
or university, and any State agency whose major function is
providing educational services. "Educational employer" or
"employer" does not include a Financial Oversight Panel
created pursuant to Section 1A-8 of the School Code due to a
district violating a financial plan but does include a School
Finance Authority created under Article 1E of the School
Code.
(b) "Educational employee" or "employee" means any
individual, excluding supervisors, managerial, confidential,
short term employees, student, and part-time academic
employees of community colleges employed full or part time by
an educational employer, but shall not include elected
officials and appointees of the Governor with the advice and
consent of the Senate, firefighters as defined by subsection
(g-1) of Section 3 of the Illinois Public Labor Relations
Act, and peace officers employed by a State university. For
the purposes of this Act, part-time academic employees of
community colleges shall be defined as those employees who
provide less than 6 credit hours of instruction per academic
semester.
(c) "Employee organization" or "labor organization"
means an organization of any kind in which membership
includes educational employees, and which exists for the
purpose, in whole or in part, of dealing with employers
concerning grievances, employee-employer disputes, wages,
rates of pay, hours of employment, or conditions of work, but
shall not include any organization which practices
discrimination in membership because of race, color, creed,
age, gender, national origin or political affiliation.
(d) "Exclusive representative" means the labor
organization which has been designated by the Illinois
Educational Labor Relations Board as the representative of
the majority of educational employees in an appropriate unit,
or recognized by an educational employer prior to January 1,
1984 as the exclusive representative of the employees in an
appropriate unit or, after January 1, 1984, recognized by an
employer upon evidence that the employee organization has
been designated as the exclusive representative by a majority
of the employees in an appropriate unit.
(e) "Board" means the Illinois Educational Labor
Relations Board.
(f) "Regional Superintendent" means the regional
superintendent of schools provided for in Articles 3 and 3A
of The School Code.
(g) "Supervisor" means any individual having authority
in the interests of the employer to hire, transfer, suspend,
lay off, recall, promote, discharge, reward or discipline
other employees within the appropriate bargaining unit and
adjust their grievances, or to effectively recommend such
action if the exercise of such authority is not of a merely
routine or clerical nature but requires the use of
independent judgment. The term "supervisor" includes only
those individuals who devote a preponderance of their
employment time to such exercising authority.
(h) "Unfair labor practice" or "unfair practice" means
any practice prohibited by Section 14 of this Act.
(i) "Person" includes an individual, educational
employee, educational employer, legal representative, or
employee organization.
(j) "Wages" means salaries or other forms of
compensation for services rendered.
(k) "Professional employee" means, in the case of a
public community college, State college or university, State
agency whose major function is providing educational
services, the Illinois School for the Deaf, and the Illinois
School for the Visually Impaired, (1) any employee engaged in
work (i) predominantly intellectual and varied in character
as opposed to routine mental, manual, mechanical, or physical
work; (ii) involving the consistent exercise of discretion
and judgment in its performance; (iii) of such character that
the output produced or the result accomplished cannot be
standardized in relation to a given period of time; and (iv)
requiring knowledge of an advanced type in a field of science
or learning customarily acquired by a prolonged course of
specialized intellectual instruction and study in an
institution of higher learning or a hospital, as
distinguished from a general academic education or from an
apprenticeship or from training in the performance of routine
mental, manual, or physical processes; or (2) any employee,
who (i) has completed the courses of specialized intellectual
instruction and study described in clause (iv) of paragraph
(1) of this subsection, and (ii) is performing related work
under the supervision of a professional person to qualify
himself or herself to become a professional as defined in
paragraph (l).
(l) "Professional employee" means, in the case of any
public school district, or combination of school districts
pursuant to joint agreement, any employee who has a
certificate issued under Article 21 or Section 34-83 of the
School Code, as now or hereafter amended.
(m) "Unit" or "bargaining unit" means any group of
employees for which an exclusive representative is selected.
(n) "Confidential employee" means an employee, who (i)
in the regular course of his or her duties, assists and acts
in a confidential capacity to persons who formulate,
determine and effectuate management policies with regard to
labor relations or who (ii) in the regular course of his or
her duties has access to information relating to the
effectuation or review of the employer's collective
bargaining policies.
(o) "Managerial employee" means an individual who is
engaged predominantly in executive and management functions
and is charged with the responsibility of directing the
effectuation of such management policies and practices.
(p) "Craft employee" means a skilled journeyman, craft
person, and his or her apprentice or helper.
(q) "Short-term employee" is an employee who is employed
for less than 2 consecutive calendar quarters during a
calendar year and who does not have a reasonable assurance
that he or she will be rehired by the same employer for the
same service in a subsequent calendar year. Nothing in this
subsection shall affect the employee status of individuals
who were covered by a collective bargaining agreement on the
effective date of this amendatory Act of 1991.
(Source: P.A. 89-409, eff. 11-15-95; 89-572, eff. 7-30-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly April 25, 2002.
Approved June 13, 2002.
Effective June 13, 2002.
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