Bill Text: IL HB5355 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Trustees of Schools Article of the School Code. Provides that the school board of a school district in a Class II county school unit may, by proper resolution, withdraw from the jurisdiction and authority of the trustees of schools and the township treasurer of a township in which all or any part of the school district is located. Requires the school board to elect or appoint its own school treasurer. Thereafter, provides that the trustees of schools shall no longer have or exercise any powers and duties with respect to the school district or the school district's business, operations, or assets; requires the township trustees to transfer and deliver to the school board all books and records relating to the school district's business and affairs; and provides that legal title to school buildings and school sites located within the school district shall be deemed transferred by operation of law to and shall vest in the school board. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5355 Detail]

Download: Illinois-2019-HB5355-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5355 Introduced , by Rep. Jim Durkin SYNOPSIS AS INTRODUCED:
105 ILCS 5/5-1 from Ch. 122, par. 5-1
Amends the Trustees of Schools Article of the School Code. Provides that the school board of a school district in a Class II county school unit may, by proper resolution, withdraw from the jurisdiction and authority of the trustees of schools and the township treasurer of a township in which all or any part of the school district is located. Requires the school board to elect or appoint its own school treasurer. Thereafter, provides that the trustees of schools shall no longer have or exercise any powers and duties with respect to the school district or the school district's business, operations, or assets; requires the township trustees to transfer and deliver to the school board all books and records relating to the school district's business and affairs; and provides that legal title to school buildings and school sites located within the school district shall be deemed transferred by operation of law to and shall vest in the school board. Effective immediately.
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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
5-1 as follows:
(105 ILCS 5/5-1) (from Ch. 122, par. 5-1)
Sec. 5-1. County school units.
(a) The territory in each county, exclusive of any school
district governed by any special act which requires the
district to appoint its own school treasurer, shall constitute
a county school unit. County school units of less than
2,000,000 inhabitants shall be known as Class I county school
units and the office of township trustees, where existing on
July 1, 1962, in such units shall be abolished on that date and
all books and records of such former township trustees shall be
forthwith thereafter transferred to the county board of school
trustees. County school units of 2,000,000 or more inhabitants
shall be known as Class II county school units and shall retain
the office of township trustees unless otherwise provided in
subsection (b) or (c).
(b) Notwithstanding subsections (a) and (c), the school
board of any elementary school district having a fall, 1989
aggregate enrollment of at least 2,500 but less than 6,500

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pupils and having boundaries that are coterminous with the
boundaries of a high school district, and the school board of
any high school district having a fall, 1989 aggregate
enrollment of at least 2,500 but less than 6,500 pupils and
having boundaries that are coterminous with the boundaries of
an elementary school district, may, whenever the territory of
such school district forms a part of a Class II county school
unit, by proper resolution withdraw such school district from
the jurisdiction and authority of the trustees of schools of
the township in which such school district is located and from
the jurisdiction and authority of the township treasurer in
such Class II county school unit; provided that the school
board of any such school district shall, upon the adoption and
passage of such resolution, thereupon elect or appoint its own
school treasurer as provided in Section 8-1. Upon the adoption
and passage of such resolution and the election or appointment
by the school board of its own school treasurer: (1) the
trustees of schools in such township shall no longer have or
exercise any powers and duties with respect to the school
district governed by such school board or with respect to the
school business, operations or assets of such school district;
and (2) all books and records of the township trustees relating
to the school business and affairs of such school district
shall be transferred and delivered to the school board of such
school district. Upon the effective date of this amendatory Act
of 1993, the legal title to, and all right, title and interest

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formerly held by the township trustees in any school buildings
and school sites used and occupied by the school board of such
school district for school purposes, that legal title, right,
title and interest thereafter having been transferred to and
vested in the regional board of school trustees under P.A.
87-473 until the abolition of that regional board of school
trustees by P.A. 87-969, shall be deemed transferred by
operation of law to and shall vest in the school board of that
school district.
Notwithstanding subsections (a) and (c), the school boards
of Oak Park & River Forest District 200, Oak Park Elementary
School District 97, and River Forest School District 90 may, by
proper resolution, withdraw from the jurisdiction and
authority of the trustees of schools of Proviso and Cicero
Townships and the township treasurer, provided that the school
board shall, upon the adoption and passage of the resolution,
elect or appoint its own school treasurer as provided in
Section 8-1 of this Code. Upon the adoption and passage of the
resolution and the election or appointment by the school board
of its own school treasurer: (1) the trustees of schools in the
township or townships shall no longer have or exercise any
powers or duties with respect to the school district or with
respect to the school business, operations, or assets of the
school district; (2) all books and records of the trustees of
schools and all moneys, securities, loanable funds, and other
assets relating to the school business and affairs of the

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school district shall be transferred and delivered to the
school board; and (3) all legal title to and all right, title,
and interest formerly held by the trustees of schools in any
common school lands, school buildings, or school sites used and
occupied by the school board and all rights of property and
causes of action pertaining to or constituting a part of the
common school lands, buildings, or sites shall be deemed
transferred by operation of law to and shall vest in the school
board.
Notwithstanding subsections (a) and (c), the respective
school boards of Berwyn North School District 98, Berwyn South
School District 100, Cicero School District 99, and J.S. Morton
High School District 201 may, by proper resolution, withdraw
from the jurisdiction and authority of the trustees of schools
of Cicero Township and the township treasurer, provided that
the school board shall, upon the adoption and passage of the
resolution, elect or appoint its own school treasurer as
provided in Section 8-1 of this Code. Upon the adoption and
passage of the resolution and the election or appointment by
the school board of its own school treasurer: (1) the trustees
of schools in the township shall no longer have or exercise any
powers or duties with respect to the school district or with
respect to the school business, operations, or assets of the
school district; (2) all books and records of the trustees of
schools and all moneys, securities, loanable funds, and other
assets relating to the school business and affairs of the

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school district shall be transferred and delivered to the
school board; and (3) all legal title to and all right, title,
and interest formerly held by the trustees of schools in any
common school lands, school buildings, or school sites used and
occupied by the school board and all rights of property and
causes of action pertaining to or constituting a part of the
common school lands, buildings, or sites shall be deemed
transferred by operation of law to and shall vest in the school
board.
Notwithstanding subsections (a) and (c) of this Section and
upon final judgment, including the exhaustion of all appeals or
a settlement between all parties, regarding claims set forth in
the case of Township Trustees of Schools Township 38 North,
Range 12 East v. Lyons Township High School District No. 204
case N. 13 CH 23386 pending in 2018 in the Circuit Court of
Cook County, Illinois, County Department, Chancery Division,
and all related pending claims, the school board of Lyons
Township High School District 204 may commence, by proper
resolution, to withdraw from the jurisdiction and authority of
the trustees of schools of Lyons Township and the township
treasurer, provided that the school board shall, upon the
adoption and passage of the resolution, elect or appoint its
own school treasurer as provided in Section 8-1 of this Code.
Upon the adoption and passage of the resolution and the
election or appointment by the school board of its own school
treasurer commencing with the first day of the succeeding

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fiscal year, but not prior to July 1, 2019: (1) the trustees of
schools in the township shall no longer have or exercise any
powers or duties with respect to the school district or with
respect to the school business, operations, or assets of the
school district; (2) all books and records of the trustees of
schools and all moneys, securities, loanable funds, and other
assets relating to the school business and affairs of the
school district shall be transferred and delivered to the
school board, allowing for a reasonable period of time not to
exceed 90 days to liquidate any pooled investments; and (3) all
legal title to and all right, title, and interest formerly held
by the trustees of schools in any common school lands, school
buildings, or school sites used and occupied by the school
board and all rights of property and causes of action
pertaining to or constituting a part of the common school
lands, buildings, or sites shall be deemed transferred by
operation of law to and shall vest in the school board. The
changes made to this Section by this amendatory Act of the
100th General Assembly are prospective only, starting from the
effective date of this amendatory Act of the 100th General
Assembly, and shall not affect any legal action pending on the
effective date of this amendatory Act of the 100th General
Assembly in the Illinois courts in which Lyons Township High
School District 204 is a listed party.
Notwithstanding subsections (a) and (c), the school board
of a school district in a Class II county school unit may

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withdraw from the jurisdiction and authority of the trustees of
schools of a township in which all or a part of the school
district is located and from the jurisdiction and authority of
the township treasurer by proper resolution, provided that the
school board of the school district shall, upon the adoption
and passage of the resolution, thereupon elect or appoint its
own school treasurer as provided in Section 8-1. Upon the
adoption and passage of a resolution and the election or
appointment by the school board of its own school treasurer:
(1) the trustees of schools shall no longer have or exercise
any powers and duties with respect to the school district
governed by the school board or with respect to the school
business, operations, or assets of the school district; and (2)
all books and records of the township trustees relating to the
school business and affairs of the school district shall be
transferred and delivered to the school board of the school
district. Upon withdrawal, the legal title to and all right,
title, and interest formerly held by the township trustees in
any school buildings and school sites used and occupied by the
school board of the withdrawing school district for school
purposes, that legal title, right, title, and interest
thereafter having been transferred to and vested in the
regional board of school trustees under Public Act 87-473 until
the abolition of that regional board of school trustees by
Public Act 87-969, shall be deemed transferred by operation of
law to and shall vest in the school board of that school

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district.
(c) Notwithstanding the provisions of subsection (a), the
offices of township treasurer and trustee of schools of any
township located in a Class II county school unit shall be
abolished as provided in this subsection if all of the
following conditions are met:
(1) During the same 30 day period, each school board of
each elementary and unit school district that is subject to
the jurisdiction and authority of the township treasurer
and trustees of schools of the township in which those
offices are sought to be abolished gives written notice by
certified mail, return receipt requested to the township
treasurer and trustees of schools of that township of the
date of a meeting of the school board, to be held not more
than 90 nor less than 60 days after the date when the
notice is given, at which meeting the school board is to
consider and vote upon the question of whether there shall
be submitted to the electors of the school district a
proposition to abolish the offices of township treasurer
and trustee of schools of that township. None of the
notices given under this paragraph to the township
treasurer and trustees of schools of a township shall be
deemed sufficient or in compliance with the requirements of
this paragraph unless all of those notices are given within
the same 30 day period.
(2) Each school board of each elementary and unit

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school district that is subject to the jurisdiction and
authority of the township treasurer and trustees of schools
of the township in which those offices are sought to be
abolished, by the affirmative vote of at least 5 members of
the school board at a school board meeting of which notice
is given as required by paragraph (1) of this subsection,
adopts a resolution requiring the secretary of the school
board to certify to the proper election authorities for
submission to the electors of the school district at the
next consolidated election in accordance with the general
election law a proposition to abolish the offices of
township treasurer and trustee of schools of that township.
None of the resolutions adopted under this paragraph by any
elementary or unit school districts that are subject to the
jurisdiction and authority of the township treasurer and
trustees of schools of the township in which those offices
are sought to be abolished shall be deemed in compliance
with the requirements of this paragraph or sufficient to
authorize submission of the proposition to abolish those
offices to a referendum of the electors in any such school
district unless all of the school boards of all of the
elementary and unit school districts that are subject to
the jurisdiction and authority of the township treasurer
and trustees of schools of that township adopt such a
resolution in accordance with the provisions of this
paragraph.

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(3) The school boards of all of the elementary and unit
school districts that are subject to the jurisdiction and
authority of the township treasurer and trustees of schools
of the township in which those offices are sought to be
abolished submit a proposition to abolish the offices of
township treasurer and trustee of schools of that township
to the electors of their respective school districts at the
same consolidated election in accordance with the general
election law, the ballot in each such district to be in
substantially the following form:
-------------------------------------------------------------
OFFICIAL BALLOT
Shall the offices of township
treasurer and YES
trustee of -------------
schools of Township ..... NO
Range ..... be abolished?
-------------------------------------------------------------
(4) At the consolidated election at which the
proposition to abolish the offices of township treasurer
and trustee of schools of a township is submitted to the
electors of each elementary and unit school district that
is subject to the jurisdiction and authority of the
township treasurer and trustee of schools of that township,
a majority of the electors voting on the proposition in
each such elementary and unit school district votes in

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favor of the proposition as submitted to them.
If in each elementary and unit school district that is
subject to the jurisdiction and authority of the township
treasurer and trustees of schools of the township in which
those offices are sought to be abolished a majority of the
electors in each such district voting at the consolidated
election on the proposition to abolish the offices of township
treasurer and trustee of schools of that township votes in
favor of the proposition as submitted to them, the proposition
shall be deemed to have passed; but if in any such elementary
or unit school district a majority of the electors voting on
that proposition in that district fails to vote in favor of the
proposition as submitted to them, then notwithstanding the vote
of the electors in any other such elementary or unit school
district on that proposition the proposition shall not be
deemed to have passed in any of those elementary or unit school
districts, and the offices of township treasurer and trustee of
schools of the township in which those offices were sought to
be abolished shall not be abolished, unless in each of those
elementary and unit school districts remaining subject to the
jurisdiction and authority of the township treasurer and
trustees of schools of that township proceedings are again
initiated to abolish those offices and all of the proceedings
and conditions prescribed in paragraphs (1) through (4) of this
subsection are repeated and met in each of those elementary and
unit school districts.

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Notwithstanding the foregoing provisions of this Section
or any other provision of the School Code, the offices of
township treasurer and trustee of schools of a township that
has a population of less than 200,000 and that contains a unit
school district and is located in a Class II county school unit
shall also be abolished as provided in this subsection if all
of the conditions set forth in paragraphs (1), (2), and (3) of
this subsection are met and if the following additional
condition is met:
The electors in all of the school districts subject to
the jurisdiction and authority of the township treasurer
and trustees of schools of the township in which those
offices are sought to be abolished shall vote at the
consolidated election on the proposition to abolish the
offices of township treasurer and trustee of schools of
that township. If a majority of the electors in all of the
school districts combined voting on the proposition vote in
favor of the proposition, then the proposition shall be
deemed to have passed; but if a majority of the electors
voting on the proposition in all of the school district
fails to vote in favor of the proposition as submitted to
them, then the proposition shall not be deemed to have
passed and the offices of township treasurer and trustee of
schools of the township in which those offices were sought
to be abolished shall not be abolished, unless and until
the proceedings detailed in paragraphs (1) through (3) of

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this subsection and the conditions set forth in this
paragraph are met.
If the proposition to abolish the offices of township
treasurer and trustee of schools of a township is deemed to
have passed at the consolidated election as provided in this
subsection, those offices shall be deemed abolished by
operation of law effective on January 1 of the calendar year
immediately following the calendar year in which that
consolidated election is held, provided that if after the
election, the trustees of schools by resolution elect to
abolish the offices of township treasurer and trustee of
schools effective on July 1 immediately following the election,
then the offices shall be abolished on July 1 immediately
following the election. On the date that the offices of
township treasurer and trustee of schools of a township are
deemed abolished by operation of law, the school board of each
elementary and unit school district and the school board of
each high school district that is subject to the jurisdiction
and authority of the township treasurer and trustees of schools
of that township at the time those offices are abolished: (i)
shall appoint its own school treasurer as provided in Section
8-1; and (ii) unless the term of the contract of a township
treasurer expires on the date that the office of township
treasurer is abolished, shall pay to the former township
treasurer its proportionate share of any aggregate
compensation that, were the office of township treasurer not

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abolished at that time, would have been payable to the former
township treasurer after that date over the remainder of the
term of the contract of the former township treasurer that
began prior to but ends after that date. In addition, on the
date that the offices of township treasurer and trustee of
schools of a township are deemed abolished as provided in this
subsection, the school board of each elementary school, high
school and unit school district that until that date is subject
to the jurisdiction and authority of the township treasurer and
trustees of schools of that township shall be deemed by
operation of law to have agreed and assumed to pay and, when
determined, shall pay to the Illinois Municipal Retirement Fund
a proportionate share of the unfunded liability existing in
that Fund at the time these offices are abolished in that
calendar year for all annuities or other benefits then or
thereafter to become payable from that Fund with respect to all
periods of service performed prior to that date as a
participating employee in that Fund by persons serving during
those periods of service as a trustee of schools, township
treasurer or regular employee in the office of the township
treasurer of that township. That unfunded liability shall be
actuarially determined by the board of trustees of the Illinois
Municipal Retirement Fund, and the board of trustees shall
thereupon notify each school board required to pay a
proportionate share of that unfunded liability of the aggregate
amount of the unfunded liability so determined. The amount so

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paid to the Illinois Municipal Retirement Fund by each of those
school districts shall be credited to the account of the
township in that Fund. For each elementary school, high school
and unit school district under the jurisdiction and authority
of a township treasurer and trustees of schools of a township
in which those offices are abolished as provided in this
subsection, each such district's proportionate share of the
aggregate compensation payable to the former township
treasurer as provided in this paragraph and each such
district's proportionate share of the aggregate amount of the
unfunded liability payable to the Illinois Municipal
Retirement Fund as provided in this paragraph shall be computed
in accordance with the ratio that the number of pupils in
average daily attendance in each such district for the school
year last ending prior to the date on which the offices of
township treasurer and trustee of schools of that township are
abolished bears to the aggregate number of pupils in average
daily attendance in all of those districts as so reported for
that school year.
Upon abolition of the offices of township treasurer and
trustee of schools of a township as provided in this
subsection: (i) the regional board of school trustees, in its
corporate capacity, shall be deemed the successor in interest
to the former trustees of schools of that township with respect
to the common school lands and township loanable funds of the
township; (ii) all right, title and interest existing or vested

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in the former trustees of schools of that township in the
common school lands and township loanable funds of the
township, and all records, moneys, securities and other assets,
rights of property and causes of action pertaining to or
constituting a part of those common school lands or township
loanable funds, shall be transferred to and deemed vested by
operation of law in the regional board of school trustees,
which shall hold legal title to, manage and operate all common
school lands and township loanable funds of the township,
receive the rents, issues and profits therefrom, and have and
exercise with respect thereto the same powers and duties as are
provided by this Code to be exercised by regional boards of
school trustees when acting as township land commissioners in
counties having at least 220,000 but fewer than 2,000,000
inhabitants; (iii) the regional board of school trustees shall
select to serve as its treasurer with respect to the common
school lands and township loanable funds of the township a
person from time to time also serving as the appointed school
treasurer of any school district that was subject to the
jurisdiction and authority of the township treasurer and
trustees of schools of that township at the time those offices
were abolished, and the person selected to also serve as
treasurer of the regional board of school trustees shall have
his compensation for services in that capacity fixed by the
regional board of school trustees, to be paid from the township
loanable funds, and shall make to the regional board of school

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trustees the reports required to be made by treasurers of
township land commissioners, give bond as required by
treasurers of township land commissioners, and perform the
duties and exercise the powers of treasurers of township land
commissioners; (iv) the regional board of school trustees shall
designate in the manner provided by Section 8-7, insofar as
applicable, a depositary for its treasurer, and the proceeds of
all rents, issues and profits from the common school lands and
township loanable funds of that township shall be deposited and
held in the account maintained for those purposes with that
depositary and shall be expended and distributed therefrom as
provided in Section 15-24 and other applicable provisions of
this Code; and (v) whenever there is vested in the trustees of
schools of a township at the time that office is abolished
under this subsection the legal title to any school buildings
or school sites used or occupied for school purposes by any
elementary school, high school or unit school district subject
to the jurisdiction and authority of those trustees of school
at the time that office is abolished, the legal title to those
school buildings and school sites shall be deemed transferred
by operation of law to and invested in the school board of that
school district, in its corporate capacity under Section
10-22.35B of this Code, the same to be held, sold, exchanged
leased or otherwise transferred in accordance with applicable
provisions of this Code.
Notwithstanding Section 2-3.25g of this Code, a waiver of a

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mandate established under this Section may not be requested.
(Source: P.A. 100-374, eff. 8-25-17; 100-921, eff. 8-17-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.