Bill Text: IL HB0807 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the School Code. Makes a technical change in a Section concerning a financial oversight panel's powers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-04-24 - Rule 19(a) / Re-referred to Rules Committee [HB0807 Detail]

Download: Illinois-2015-HB0807-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB0807 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED:
105 ILCS 5/1B-22
Amends the School Code. Makes a technical change in a Section concerning a financial oversight panel's powers.
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A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Section
1B-22 as follows:
(105 ILCS 5/1B-22)
Sec. 1B-22. Additional Powers of the Panel. For Panels
established under Section 1B-4 for a district which had its
financial plan rescinded by the the State Board for violating
that plan as provided in Section 1A-8, the Panel shall have the
following additional powers:
(a) As necessary to carry out its purposes when district
resources are not readily available or appropriate for use by
the Panel, the Panel may 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.
(b) As necessary to carry out its purposes when district
resources are not readily available or appropriate for use by
the Panel, the Panel may purchase personal property necessary
or convenient for its purposes; mortgage, pledge or otherwise
grant security interests in such properties; and convey to the
district such of its property as, in the judgment of the Panel,

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is no longer necessary for its purposes.
(c) As necessary to carry out its purposes when district
resources are not readily available or appropriate for use by
the Panel, the Panel may appoint officers, agents, and
employees of the Panel, define their duties and qualifications,
and fix their compensation and employee benefits.
(d) In order to investigate allegations of or incidents of
waste, fraud, or financial mismanagement which the Board is
unable or unwilling to properly investigate as requested by the
Panel, the Panel may appoint an Inspector General who shall
have the authority to conduct investigations into such
allegations or incidents. The Inspector General shall make
recommendations to the Panel about its investigations. The
Inspector General shall be independent of the operations of the
Panel and the Board and perform other duties requested by the
Panel. The Inspector General shall have access to all
information and personnel necessary to perform the duties of
the office. If the Inspector General determines that a possible
criminal act has been committed or that special expertise is
required in the investigation, he shall immediately notify the
State's Attorney in the county in which the district is
located. All investigations conducted by the Inspector General
shall be conducted in a manner that ensures the preservation of
evidence for use in criminal prosecutions. At all times the
Inspector General shall be granted access to any building or
facility that is owned, operated, or leased by the Panel or the

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Board. The Inspector General shall have the power to subpoena
witnesses and compel the production of books and papers
pertinent to an investigation authorized by this Code. Any
person who (1) fails to appear in response to a subpoena; (2)
fails to answer any question; (3) fails to produce any books or
papers pertinent to an investigation under this Code; or (4)
knowingly gives false testimony during an investigation under
this Code is guilty of a Class A misdemeanor. The Inspector
General shall provide to the Panel and the State Board of
Education a summary of reports and investigations made under
this Section for the previous fiscal year no later than January
1 of each year. The summaries shall detail the final
disposition of those recommendations. The summaries shall not
contain any confidential or identifying information concerning
the subjects of the reports and investigations. The summaries
shall also include detailed recommended administrative actions
and matters for consideration by the State Board of Education
or the General Assembly.
(e) No hiring or appointment of any person in any position
by the Board, the superintendent, or any other officer or
employee of the Board shall be made or entered into unless it
is consistent with the Financial Plan and Budget in effect and
the staffing plan approved by the Panel under this Section. The
hiring or appointment of any person shall not be binding on the
Board unless and until it is in compliance with this Section.
The Board shall submit to the Panel for approval by the Panel a

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staffing plan for the upcoming school year at the same time as
the submission of the Budget, except that the staffing plan for
the fiscal year ending in 1997 shall be submitted to the Panel
within 90 days after the effective date of this amendatory Act
of 1996. The staffing plan shall be accompanied by a cost
analysis and such other information as the Panel may require.
The Panel may prescribe standards, procedures, and forms for
submission of the staffing plan. The Panel shall approve the
staffing plan if the information required to be submitted is
complete and the staffing plan is consistent with the Budget
and Financial Plan in effect. Otherwise, the Panel shall reject
the staffing plan. In the event of rejection, the Panel shall
prescribe a procedure and standards for revision of the
staffing plan. The Panel shall act on the staffing plan at the
same time as the approval of the Budget, except that the
staffing plan for the fiscal year ending in 1997 shall be acted
upon within 60 days of the submission of the staffing plan by
the Board. The Board shall report to the Panel, at such times
and in such manner as the Panel may direct, concerning the
Board's compliance with each staffing plan. The Panel may
review the Board's operations, obtaining budgetary data and
financial statements, may require the Board to produce reports,
and shall have access to any other information in the
possession of the Board that it deems relevant. The Panel may
issue directives to the Board to assure compliance with the
staffing plan, including the issuance of reduction in force

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notices, non-renewal of employment contracts, or any other
notices or actions required by contract or law. The Board shall
produce such budgetary data, financial statements, reports,
and other information and shall comply with such directives.
After approval of each staffing plan, the Board shall regularly
reexamine the estimates on which it was based and revise them
as necessary. The Board shall promptly notify the Panel of any
material change in the estimates in the staffing plan. The
Board may submit to the Panel, or the Panel may require the
Board to submit, modifications to the staffing plan based upon
revised revenue or expenditure estimates or for any other good
reason. The Panel shall approve or reject each modified
staffing plan within 60 days of its submission in a manner
similar to the provisions of this subsection for the approval
or rejection of the initial staffing plan.
(f) The Panel shall examine the business records and audit
the accounts of the Board or require that the Board examine its
business records and audit its accounts at such time and in
such manner as the Panel may prescribe. The Board shall appoint
a certified public accountant annually, approved by the Panel,
to audit its financial statements. The audit conducted pursuant
to this paragraph shall be in lieu of the audit that the Board
is required to undertake pursuant to Section 3-7.
(g) The Panel shall initiate and direct financial
management assessments and similar analyses of the operations
of the Board as may, in the judgment of the Panel, assure sound

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and efficient financial management of the Board. Upon the
completion of these assessments, the Panel shall give
directives to the Board regarding improvements and changes that
derive from these assessments, which the Board shall implement.
In conjunction with its budgetary submission to the Panel for
each fiscal year, the Board shall demonstrate to the
satisfaction of the Panel that the directives of the Panel have
been implemented in whole or in part or, in the alternative,
are not capable of being implemented. In consideration of
whether to approve or reject the budget for a fiscal year, the
Panel shall adjudge whether the Board has fully considered and
responsibly proposed implementation of the Panel's directives.
(h) The Panel shall initiate and direct a management audit
of the Board at least once every 2 years. The audit shall
review the personnel, organization, contracts, leases, and
physical properties of the Board to determine whether the Board
is managing and utilizing its resources in an economical and
efficient manner. The audit shall determine the causes of any
inefficiencies or uneconomical practices, including
inadequacies in internal and administrative procedures,
organizational structure, uses of resources, utilization of
real property, allocation of personnel, purchasing policies,
and equipment.
(i) In the event that the Board refuses or fails to follow
a directive of the Panel to issue notices of non-renewal of
contracts, to issue notices of reduction in force to employees,

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to issue requests for bids or proposals, or to obtain financial
or other information that the Panel finds necessary for the
implementation of its responsibilities under this Article, the
Panel may take such action in the name of the district, and
such action shall be binding the same as if the action had been
taken by the Board. The powers established by this paragraph do
not authorize the Panel to enter into contracts in the name of
the Board.
(j) The Panel shall meet with the Board or its designees in
closed session prior to the Board commencing any collective
bargaining negotiations to discuss the financial issues
relevant to the bargaining and for the purpose of the Panel
approving the budget limitations for the potential collective
bargaining agreement. The Board shall not make or consider any
proposal which does not comply with the collective bargaining
budget approved by the Panel. The Board shall keep the Panel
apprised as to the status of the bargaining. The Board shall
present any proposed change in the approved collective
bargaining budget to the Panel in closed session for approval.
Prior to the Board taking a final vote on any tentative
agreement approved by the employee organization, the Board
shall discuss the tentative agreement with the Panel in closed
session. Upon final approval of a collective bargaining
agreement by both the Board and the employee organization, the
Board shall submit the final collective bargaining agreement to
the Panel for approval. At the same time that the Board submits

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the final agreement to the Panel, the Board shall notify the
employee organization that the final agreement has been
submitted and the date of the Panel meeting at which the final
agreement will be considered. The employee organization shall
be provided an opportunity to discuss the final agreement with
the Panel prior to the Panel taking action on the agreement. No
collective bargaining agreement shall be binding upon the
district unless the Board has followed the requirements of this
paragraph and the final agreement has been approved by the
Panel.
(k) The budget of the Panel or any revisions to the budget,
including any costs to the Panel associated with the
appointment of an Inspector General, shall be approved by the
State Superintendent upon request of the Panel and after
opportunity for response by the Board.
(Source: P.A. 89-572, eff. 7-30-96.)