Bill Text: IL HB0160 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the School Code. In a Section concerning interfund transfers, extends the time period during which a school district other than the Chicago school district may transfer moneys from specified funds for any purpose from June 30, 2013 to June 30, 2016. Allows the school board of any school district (i) that is subject to the Property Tax Extension Limitation Law, (ii) that has a population of less than 500,000 inhabitants, (iii) that is levying at its maximum tax rate, (iv) whose total equalized assessed valuation has declined 25% in the prior 2 years, and (v) in which 75% or more of its students receive free or reduced-price lunch to annually transfer money from any fund of the district to any other fund of the district by proper resolution following a public hearing set by the school board or the president of the school board, with notice, so long as the district meets the qualifications set forth in this provision at the time a given transfer is made.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Passed) 2013-08-02 - Public Act . . . . . . . . . 98-0131 [HB0160 Detail]

Download: Illinois-2013-HB0160-Engrossed.html



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1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The School Code is amended by changing Section
517-2A as follows:
6 (105 ILCS 5/17-2A) (from Ch. 122, par. 17-2A)
7 Sec. 17-2A. Interfund Transfers.
8 (a) The school board of any district having a population of
9less than 500,000 inhabitants may, by proper resolution
10following a public hearing set by the school board or the
11president of the school board (that is preceded (i) by at least
12one published notice over the name of the clerk or secretary of
13the board, occurring at least 7 days and not more than 30 days
14prior to the hearing, in a newspaper of general circulation
15within the school district and (ii) by posted notice over the
16name of the clerk or secretary of the board, at least 48 hours
17before the hearing, at the principal office of the school board
18or at the building where the hearing is to be held if a
19principal office does not exist, with both notices setting
20forth the time, date, place, and subject matter of the
21hearing), transfer money from (1) the Educational Fund to the
22Operations and Maintenance Fund or the Transportation Fund, (2)
23the Operations and Maintenance Fund to the Educational Fund or

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1the Transportation Fund, or (3) the Transportation Fund to the
2Educational Fund or the Operations and Maintenance Fund of said
3district, provided that, except during the period from July 1,
42003 through June 30, 2016 2013, such transfer is made solely
5for the purpose of meeting one-time, non-recurring expenses.
6Except during the period from July 1, 2003 through June 30,
72016 and except as otherwise provided in subsection (b) of this
8Section 2013, any other permanent interfund transfers
9authorized by any provision or judicial interpretation of this
10Code for which the transferee fund is not precisely and
11specifically set forth in the provision of this Code
12authorizing such transfer shall be made to the fund of the
13school district most in need of the funds being transferred, as
14determined by resolution of the school board.
15 (b) Notwithstanding subsection (a) of this Section or any
16other provision of this Code to the contrary, the school board
17of any school district (i) that is subject to the Property Tax
18Extension Limitation Law, (ii) that has a population of less
19than 500,000 inhabitants, (iii) that is levying at its maximum
20tax rate, (iv) whose total equalized assessed valuation has
21declined 20% in the prior 2 years, (v) in which 80% or more of
22its students receive free or reduced-price lunch, and (vi) that
23had an equalized assessed valuation of less than $207 million
24but more than $203 million in the 2011 levy year may annually,
25until July 1, 2016, transfer money from any fund of the
26district, other than the Illinois Municipal Retirement Fund and

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1the Bonds and Interest Fund, to the educational fund, the
2operations and maintenance fund, or the transportation fund of
3the district by proper resolution following a public hearing
4set by the school board or the president of the school board,
5with notice as provided in subsection (a) of this Section, so
6long as the district meets the qualifications set forth in this
7subsection (b) on the effective date of this amendatory Act of
8the 98th General Assembly even if the district does not meet
9those qualifications at the time a given transfer is made.
10(Source: P.A. 95-53, eff. 8-10-07; 96-1201, eff. 7-22-10.)
11 Section 10. The Tort Liability of Schools Act is amended by
12adding Section 9.5 as follows:
13 (745 ILCS 25/9.5 new)
14 Sec. 9.5. Tort immunity fund transfers. Notwithstanding
15any provision of the School Code to the contrary, if a school
16board determines that there are educational needs that will go
17unmet because of a lack of funds in the district's educational,
18operations and maintenance, and transportation funds, that
19there exists a sufficient fund balance in the district's tort
20immunity fund to meet those educational needs, and that a
21transfer will not cause the district to realize increased tort
22exposure, then the school board of any school district (i) that
23is subject to the Property Tax Extension Limitation Law, (ii)
24that has a population of less than 500,000 inhabitants, (iii)

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1that is levying at its maximum tax rate, (iv) whose total
2equalized assessed valuation has declined 20% in the prior 2
3years, (v) in which 80% or more
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