Bill Text: IL HB0548 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Financial Oversight Panel Law of the School Code. Requires the State Board of Education to establish a financial oversight panel for Waukegan Community Unit School District 60. Provides that 10 years after the creation of the panel, the State Board shall determine whether to abolish the panel. Requires the State Board to establish a transition plan once the determination is made to abolish the panel.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB0548 Detail]

Download: Illinois-2021-HB0548-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB0548 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED:
105 ILCS 5/1H-15
105 ILCS 5/1H-115
Amends the Financial Oversight Panel Law of the School Code. Requires the State Board of Education to establish a financial oversight panel for Waukegan Community Unit School District 60. Provides that 10 years after the creation of the panel, the State Board shall determine whether to abolish the panel. Requires the State Board to establish a transition plan once the determination is made to abolish the panel.
LRB102 12137 CMG 17474 b
FISCAL NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
HB0548 LRB102 12137 CMG 17474 b
AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Sections
1H-15 and 1H-115 as follows:
(105 ILCS 5/1H-15)
Sec. 1H-15. Establishment of Financial Oversight Panels;
duties of district.
(a) A school district may petition the State Board for the
establishment of a Financial Oversight Panel for the district
or the State Board may establish a Panel without a petition
from the district. The petition shall cite the reasons why the
creation of a Financial Oversight Panel for the district is
necessary. In determining whether or not to place a district
under a Panel, the State Board shall consider all of the
following:
(1) If a Panel is in the best educational and
financial interests of the district.
(2) If a Panel is in the best interest of other schools
in the area and the educational welfare of all the pupils
therein.
(3) Whether the board of education has complied with
the requirements of Section 1A-8 of this Code.

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Notwithstanding the other provisions of this subsection
(a), the State Board shall establish a Panel for Waukegan
Community Unit School District 60.
(b) Upon establishment of a Financial Oversight Panel, 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)
Financial Oversight Panel", which in this name shall
exercise all authority vested in a Panel by this Article.
(2) The powers and duties of a Financial Oversight
Panel established pursuant to this Article shall include
the duties and obligations of financial oversight panels
established under Article 1B of this Code, in addition to
any duties and obligations established under this Article.
However, if there is any conflict between the provisions
of this Article and the provisions of Article 1B of this
Code, the provisions of this Article control.
(3) The Financial Oversight Panel, the school board,
and the district superintendent or chief executive officer
shall develop goals and objectives to assist the district
in obtaining financial stability. The goals and objectives
must be developed as part of the financial plan that the
school board is required to develop, adopt, and submit to
the Panel in accordance with Section 1B-12 of this Code.
The goals and objectives must be formally reviewed at
agreed to intervals, but at least one time per year.

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Review shall include progress made and recommendations and
modifications needed to achieve abolition of financial
oversight provided for under Section 1H-115 of this Code.
(c) Any school district having a Financial Oversight Panel
established under Article 1B of this Code or any Financial
Oversight Panel established under Article 1B may petition the
State Board for the establishment of a Financial Oversight
Panel under this Article and concurrent dissolution of the
Article 1B Panel. All records, papers, books, funds, or other
assets or liabilities belonging to the dissolving Financial
Oversight Panel shall be transferred to the newly established
Financial Oversight Panel.
(Source: P.A. 97-429, eff. 8-16-11.)
(105 ILCS 5/1H-115)
Sec. 1H-115. Abolition of Panel.
(a) Except as provided in subsections (b), (c), (d), and
(e), and (f) of this Section, the Panel shall be abolished 10
years after its creation.
(b) Except as provided in subsection (f), the The State
Board, upon recommendation of the Panel or petition of the
school board, may abolish the Panel at any time after the Panel
has been in existence for 3 years if no obligations of the
Panel are outstanding or remain undefeased and upon
investigation and finding that:
(1) none of the factors specified in Section 1A-8 of

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this Code remain applicable to the district; and
(2) there has been substantial achievement of the
goals and objectives established pursuant to the financial
plan and required under Section 1H-15 of this Code.
(c) Except as provided in subsection (f), the The Panel of
a district that otherwise meets all of the requirements for
abolition of a Panel under subsection (b) of this Section,
except for the fact that there are outstanding financial
obligations of the Panel, may petition the State Board for
reinstatement of all of the school board's powers and duties
assumed by the Panel; and if approved by the State Board, then:
(1) the Panel shall continue in operation, but its
powers and duties shall be limited to those necessary to
manage and administer its outstanding obligations;
(2) the school board shall once again begin exercising
all of the powers and duties otherwise allowed by statute;
and
(3) the Panel shall be abolished as provided in
subsection (a) of this Section.
(d) Except as provided in subsection (f), if If the Panel
of a district otherwise meets all of the requirements for
abolition of a Panel under subsection (b) of this Section,
except for outstanding obligations of the Panel, then the
district may petition the State Board for abolition of the
Panel if the district:
(1) establishes an irrevocable trust fund, the purpose

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of which is to provide moneys to defease the outstanding
obligations of the Panel; and
(2) issues funding bonds pursuant to the provisions of
Sections 19-8 and 19-9 of this Code.
A district with a Panel that falls under this subsection
(d) shall be abolished as provided in subsection (a) of this
Section.
(e) Except as provided in subsection (f), the The duration
of a Panel may be continued for more than 10 years after the
date of its creation if the State Board extends the Panel's
duration under paragraph (3) of subsection (e) of Section
18-8.15 of this Code.
(f) Ten years after the creation of the Waukegan Community
Unit School District 60 Financial Oversight Panel, the State
Board shall determine whether to abolish the Panel. Once the
determination is made to abolish the Panel, the State Board
shall establish a transition plan for the transfer of the
Panel's powers and duties to the school board.
(Source: P.A. 101-643, eff. 6-18-20.)