Bill Text: IL SB0001 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the School Code. Makes a technical change in a Section concerning the School Code's construction. Effective immediately, but this Act does not take effect at all unless Senate Bills 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.

Spectrum: Partisan Bill (Democrat 29-0)

Status: (Engrossed) 2017-06-06 - Added as Co-Sponsor Sen. Terry Link [SB0001 Detail]

Download: Illinois-2017-SB0001-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 1. This Act may be referred to as the
5Evidence-Based Funding for Student Success Act.
6 Section 5. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
8 (20 ILCS 620/7) (from Ch. 67 1/2, par. 1007)
9 Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and
16certified the economic development project area, each year
17after the date of the certification by the county clerk of the
18"total initial equalized assessed value" until economic
19development project costs and all municipal obligations
20financing economic development project costs have been paid,
21the ad valorem taxes, if any, arising from the levies upon the
22taxable real property in the economic development project area

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1by taxing districts and tax rates determined in the manner
2provided in subsection (b) of Section 6 of this Act shall be
3divided as follows:
4 (1) That portion of the taxes levied upon each taxable lot,
5block, tract or parcel of real property which is attributable
6to the lower of the current equalized assessed value or the
7initial equalized assessed value of each such taxable lot,
8block, tract, or parcel of real property existing at the time
9tax increment allocation financing was adopted, shall be
10allocated to and when collected shall be paid by the county
11collector to the respective affected taxing districts in the
12manner required by law in the absence of the adoption of tax
13increment allocation financing.
14 (2) That portion, if any, of those taxes which is
15attributable to the increase in the current equalized assessed
16valuation of each taxable lot, block, tract, or parcel of real
17property in the economic development project area, over and
18above the initial equalized assessed value of each property
19existing at the time tax increment allocation financing was
20adopted, shall be allocated to and when collected shall be paid
21to the municipal treasurer, who shall deposit those taxes into
22a special fund called the special tax allocation fund of the
23municipality for the purpose of paying economic development
24project costs and obligations incurred in the payment thereof.
25 The municipality, by an ordinance adopting tax increment
26allocation financing, may pledge the funds in and to be

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1deposited in the special tax allocation fund for the payment of
2obligations issued under this Act and for the payment of
3economic development project costs. No part of the current
4equalized assessed valuation of each property in the economic
5development project area attributable to any increase above the
6total initial equalized assessed value, of such properties
7shall be used in calculating the general State school aid
8formula, provided for in Section 18-8 of the School Code, or
9the evidence-based funding formula, provided for in Section
1018-8.15 of the School Code, until such time as all economic
11development projects costs have been paid as provided for in
12this Section.
13 When the economic development project costs, including
14without limitation all municipal obligations financing
15economic development project costs incurred under this Act,
16have been paid, all surplus funds then remaining in the special
17tax allocation fund shall be distributed by being paid by the
18municipal treasurer to the county collector, who shall
19immediately thereafter pay those funds to the taxing districts
20having taxable property in the economic development project
21area in the same manner and proportion as the most recent
22distribution by the county collector to those taxing districts
23of real property taxes from real property in the economic
24development project area.
25 Upon the payment of all economic development project costs,
26retirement of obligations and the distribution of any excess

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1monies pursuant to this Section the municipality shall adopt an
2ordinance dissolving the special tax allocation fund for the
3economic development project area, terminating the economic
4development project area, and terminating the use of tax
5increment allocation financing for the economic development
6project area. Thereafter the rates of the taxing districts
7shall be extended and taxes levied, collected and distributed
8in the manner applicable in the absence of the adoption of tax
9increment allocation financing.
10 Nothing in this Section shall be construed as relieving
11property in economic development project areas from being
12assessed as provided in the Property Tax Code, or as relieving
13owners of that property from paying a uniform rate of taxes, as
14required by Section 4 of Article IX of the Illinois
15Constitution.
16(Source: P.A. 98-463, eff. 8-16-13.)
17 Section 10. The State Finance Act is amended by changing
18Section 13.2 as follows:
19 (30 ILCS 105/13.2) (from Ch. 127, par. 149.2)
20 Sec. 13.2. Transfers among line item appropriations.
21 (a) Transfers among line item appropriations from the same
22treasury fund for the objects specified in this Section may be
23made in the manner provided in this Section when the balance
24remaining in one or more such line item appropriations is

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1insufficient for the purpose for which the appropriation was
2made.
3 (a-1) No transfers may be made from one agency to another
4agency, nor may transfers be made from one institution of
5higher education to another institution of higher education
6except as provided by subsection (a-4).
7 (a-2) Except as otherwise provided in this Section,
8transfers may be made only among the objects of expenditure
9enumerated in this Section, except that no funds may be
10transferred from any appropriation for personal services, from
11any appropriation for State contributions to the State
12Employees' Retirement System, from any separate appropriation
13for employee retirement contributions paid by the employer, nor
14from any appropriation for State contribution for employee
15group insurance. During State fiscal year 2005, an agency may
16transfer amounts among its appropriations within the same
17treasury fund for personal services, employee retirement
18contributions paid by employer, and State Contributions to
19retirement systems; notwithstanding and in addition to the
20transfers authorized in subsection (c) of this Section, the
21fiscal year 2005 transfers authorized in this sentence may be
22made in an amount not to exceed 2% of the aggregate amount
23appropriated to an agency within the same treasury fund. During
24State fiscal year 2007, the Departments of Children and Family
25Services, Corrections, Human Services, and Juvenile Justice
26may transfer amounts among their respective appropriations

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1within the same treasury fund for personal services, employee
2retirement contributions paid by employer, and State
3contributions to retirement systems. During State fiscal year
42010, the Department of Transportation may transfer amounts
5among their respective appropriations within the same treasury
6fund for personal services, employee retirement contributions
7paid by employer, and State contributions to retirement
8systems. During State fiscal years 2010 and 2014 only, an
9agency may transfer amounts among its respective
10appropriations within the same treasury fund for personal
11services, employee retirement contributions paid by employer,
12and State contributions to retirement systems.
13Notwithstanding, and in addition to, the transfers authorized
14in subsection (c) of this Section, these transfers may be made
15in an amount not to exceed 2% of the aggregate amount
16appropriated to an agency within the same treasury fund.
17 (a-2.5) During State fiscal year 2015 only, the State's
18Attorneys Appellate Prosecutor may transfer amounts among its
19respective appropriations contained in operational line items
20within the same treasury fund. Notwithstanding, and in addition
21to, the transfers authorized in subsection (c) of this Section,
22these transfers may be made in an amount not to exceed 4% of
23the aggregate amount appropriated to the State's Attorneys
24Appellate Prosecutor within the same treasury fund.
25 (a-3) Further, if an agency receives a separate
26appropriation for employee retirement contributions paid by

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1the employer, any transfer by that agency into an appropriation
2for personal services must be accompanied by a corresponding
3transfer into the appropriation for employee retirement
4contributions paid by the employer, in an amount sufficient to
5meet the employer share of the employee contributions required
6to be remitted to the retirement system.
7 (a-4) Long-Term Care Rebalancing. The Governor may
8designate amounts set aside for institutional services
9appropriated from the General Revenue Fund or any other State
10fund that receives monies for long-term care services to be
11transferred to all State agencies responsible for the
12administration of community-based long-term care programs,
13including, but not limited to, community-based long-term care
14programs administered by the Department of Healthcare and
15Family Services, the Department of Human Services, and the
16Department on Aging, provided that the Director of Healthcare
17and Family Services first certifies that the amounts being
18transferred are necessary for the purpose of assisting persons
19in or at risk of being in institutional care to transition to
20community-based settings, including the financial data needed
21to prove the need for the transfer of funds. The total amounts
22transferred shall not exceed 4% in total of the amounts
23appropriated from the General Revenue Fund or any other State
24fund that receives monies for long-term care services for each
25fiscal year. A notice of the fund transfer must be made to the
26General Assembly and posted at a minimum on the Department of

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1Healthcare and Family Services website, the Governor's Office
2of Management and Budget website, and any other website the
3Governor sees fit. These postings shall serve as notice to the
4General Assembly of the amounts to be transferred. Notice shall
5be given at least 30 days prior to transfer.
6 (b) In addition to the general transfer authority provided
7under subsection (c), the following agencies have the specific
8transfer authority granted in this subsection:
9 The Department of Healthcare and Family Services is
10authorized to make transfers representing savings attributable
11to not increasing grants due to the births of additional
12children from line items for payments of cash grants to line
13items for payments for employment and social services for the
14purposes outlined in subsection (f) of Section 4-2 of the
15Illinois Public Aid Code.
16 The Department of Children and Family Services is
17authorized to make transfers not exceeding 2% of the aggregate
18amount appropriated to it within the same treasury fund for the
19following line items among these same line items: Foster Home
20and Specialized Foster Care and Prevention, Institutions and
21Group Homes and Prevention, and Purchase of Adoption and
22Guardianship Services.
23 The Department on Aging is authorized to make transfers not
24exceeding 2% of the aggregate amount appropriated to it within
25the same treasury fund for the following Community Care Program
26line items among these same line items: purchase of services

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1covered by the Community Care Program and Comprehensive Case
2Coordination.
3 The State Treasurer is authorized to make transfers among
4line item appropriations from the Capital Litigation Trust
5Fund, with respect to costs incurred in fiscal years 2002 and
62003 only, when the balance remaining in one or more such line
7item appropriations is insufficient for the purpose for which
8the appropriation was made, provided that no such transfer may
9be made unless the amount transferred is no longer required for
10the purpose for which that appropriation was made.
11 The State Board of Education is authorized to make
12transfers from line item appropriations within the same
13treasury fund for General State Aid, and General State Aid -
14Hold Harmless, Evidence-Based Funding, provided that no such
15transfer may be made unless the amount transferred is no longer
16required for the purpose for which that appropriation was made,
17to the line item appropriation for Transitional Assistance when
18the balance remaining in such line item appropriation is
19insufficient for the purpose for which the appropriation was
20made.
21 The State Board of Education is authorized to make
22transfers between the following line item appropriations
23within the same treasury fund: Disabled Student
24Services/Materials (Section 14-13.01 of the School Code),
25Disabled Student Transportation Reimbursement (Section
2614-13.01 of the School Code), Disabled Student Tuition -

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1Private Tuition (Section 14-7.02 of the School Code),
2Extraordinary Special Education (Section 14-7.02b of the
3School Code), Reimbursement for Free Lunch/Breakfast Program,
4Summer School Payments (Section 18-4.3 of the School Code), and
5Transportation - Regular/Vocational Reimbursement (Section
629-5 of the School Code). Such transfers shall be made only
7when the balance remaining in one or more such line item
8appropriations is insufficient for the purpose for which the
9appropriation was made and provided that no such transfer may
10be made unless the amount transferred is no longer required for
11the purpose for which that appropriation was made.
12 The Department of Healthcare and Family Services is
13authorized to make transfers not exceeding 4% of the aggregate
14amount appropriated to it, within the same treasury fund, among
15the various line items appropriated for Medical Assistance.
16 (c) The sum of such transfers for an agency in a fiscal
17year shall not exceed 2% of the aggregate amount appropriated
18to it within the same treasury fund for the following objects:
19Personal Services; Extra Help; Student and Inmate
20Compensation; State Contributions to Retirement Systems; State
21Contributions to Social Security; State Contribution for
22Employee Group Insurance; Contractual Services; Travel;
23Commodities; Printing; Equipment; Electronic Data Processing;
24Operation of Automotive Equipment; Telecommunications
25Services; Travel and Allowance for Committed, Paroled and
26Discharged Prisoners; Library Books; Federal Matching Grants

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1for Student Loans; Refunds; Workers' Compensation,
2Occupational Disease, and Tort Claims; and, in appropriations
3to institutions of higher education, Awards and Grants.
4Notwithstanding the above, any amounts appropriated for
5payment of workers' compensation claims to an agency to which
6the authority to evaluate, administer and pay such claims has
7been delegated by the Department of Central Management Services
8may be transferred to any other expenditure object where such
9amounts exceed the amount necessary for the payment of such
10claims.
11 (c-1) Special provisions for State fiscal year 2003.
12Notwithstanding any other provision of this Section to the
13contrary, for State fiscal year 2003 only, transfers among line
14item appropriations to an agency from the same treasury fund
15may be made provided that the sum of such transfers for an
16agency in State fiscal year 2003 shall not exceed 3% of the
17aggregate amount appropriated to that State agency for State
18fiscal year 2003 for the following objects: personal services,
19except that no transfer may be approved which reduces the
20aggregate appropriations for personal services within an
21agency; extra help; student and inmate compensation; State
22contributions to retirement systems; State contributions to
23social security; State contributions for employee group
24insurance; contractual services; travel; commodities;
25printing; equipment; electronic data processing; operation of
26automotive equipment; telecommunications services; travel and

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1allowance for committed, paroled, and discharged prisoners;
2library books; federal matching grants for student loans;
3refunds; workers' compensation, occupational disease, and tort
4claims; and, in appropriations to institutions of higher
5education, awards and grants.
6 (c-2) Special provisions for State fiscal year 2005.
7Notwithstanding subsections (a), (a-2), and (c), for State
8fiscal year 2005 only, transfers may be made among any line
9item appropriations from the same or any other treasury fund
10for any objects or purposes, without limitation, when the
11balance remaining in one or more such line item appropriations
12is insufficient for the purpose for which the appropriation was
13made, provided that the sum of those transfers by a State
14agency shall not exceed 4% of the aggregate amount appropriated
15to that State agency for fiscal year 2005.
16 (c-3) Special provisions for State fiscal year 2015.
17Notwithstanding any other provision of this Section, for State
18fiscal year 2015, transfers among line item appropriations to a
19State agency from the same State treasury fund may be made for
20operational or lump sum expenses only, provided that the sum of
21such transfers for a State agency in State fiscal year 2015
22shall not exceed 4% of the aggregate amount appropriated to
23that State agency for operational or lump sum expenses for
24State fiscal year 2015. For the purpose of this subsection,
25"operational or lump sum expenses" includes the following
26objects: personal services; extra help; student and inmate

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1compensation; State contributions to retirement systems; State
2contributions to social security; State contributions for
3employee group insurance; contractual services; travel;
4commodities; printing; equipment; electronic data processing;
5operation of automotive equipment; telecommunications
6services; travel and allowance for committed, paroled, and
7discharged prisoners; library books; federal matching grants
8for student loans; refunds; workers' compensation,
9occupational disease, and tort claims; lump sum and other
10purposes; and lump sum operations. For the purpose of this
11subsection (c-3), "State agency" does not include the Attorney
12General, the Secretary of State, the Comptroller, the
13Treasurer, or the legislative or judicial branches.
14 (d) Transfers among appropriations made to agencies of the
15Legislative and Judicial departments and to the
16constitutionally elected officers in the Executive branch
17require the approval of the officer authorized in Section 10 of
18this Act to approve and certify vouchers. Transfers among
19appropriations made to the University of Illinois, Southern
20Illinois University, Chicago State University, Eastern
21Illinois University, Governors State University, Illinois
22State University, Northeastern Illinois University, Northern
23Illinois University, Western Illinois University, the Illinois
24Mathematics and Science Academy and the Board of Higher
25Education require the approval of the Board of Higher Education
26and the Governor. Transfers among appropriations to all other

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1agencies require the approval of the Governor.
2 The officer responsible for approval shall certify that the
3transfer is necessary to carry out the programs and purposes
4for which the appropriations were made by the General Assembly
5and shall transmit to the State Comptroller a certified copy of
6the approval which shall set forth the specific amounts
7transferred so that the Comptroller may change his records
8accordingly. The Comptroller shall furnish the Governor with
9information copies of all transfers approved for agencies of
10the Legislative and Judicial departments and transfers
11approved by the constitutionally elected officials of the
12Executive branch other than the Governor, showing the amounts
13transferred and indicating the dates such changes were entered
14on the Comptroller's records.
15 (e) The State Board of Education, in consultation with the
16State Comptroller, may transfer line item appropriations for
17General State Aid or Evidence-Based Funding between the Common
18School Fund and the Education Assistance Fund. With the advice
19and consent of the Governor's Office of Management and Budget,
20the State Board of Education, in consultation with the State
21Comptroller, may transfer line item appropriations between the
22General Revenue Fund and the Education Assistance Fund for the
23following programs:
24 (1) Disabled Student Personnel Reimbursement (Section
25 14-13.01 of the School Code);
26 (2) Disabled Student Transportation Reimbursement

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1 (subsection (b) of Section 14-13.01 of the School Code);
2 (3) Disabled Student Tuition - Private Tuition
3 (Section 14-7.02 of the School Code);
4 (4) Extraordinary Special Education (Section 14-7.02b
5 of the School Code);
6 (5) Reimbursement for Free Lunch/Breakfast Programs;
7 (6) Summer School Payments (Section 18-4.3 of the
8 School Code);
9 (7) Transportation - Regular/Vocational Reimbursement
10 (Section 29-5 of the School Code);
11 (8) Regular Education Reimbursement (Section 18-3 of
12 the School Code); and
13 (9) Special Education Reimbursement (Section 14-7.03
14 of the School Code).
15(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
16eff. 3-26-15.)
17 Section 15. The Property Tax Code is amended by changing
18Sections 18-200 and 18-249 as follows:
19 (35 ILCS 200/18-200)
20 Sec. 18-200. School Code. A school district's State aid
21shall not be reduced under the computation under subsections
225(a) through 5(h) of Part A of Section 18-8 of the School Code
23or under Section 18-8.15 of the School Code due to the
24operating tax rate falling from above the minimum requirement

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1of that Section of the School Code to below the minimum
2requirement of that Section of the School Code due to the
3operation of this Law.
4(Source: P.A. 87-17; 88-455.)
5 (35 ILCS 200/18-249)
6 Sec. 18-249. Miscellaneous provisions.
7 (a) Certification of new property. For the 1994 levy year,
8the chief county assessment officer shall certify to the county
9clerk, after all changes by the board of review or board of
10appeals, as the case may be, the assessed value of new property
11by taxing district for the 1994 levy year under rules
12promulgated by the Department.
13 (b) School Code. A school district's State aid shall not be
14reduced under the computation under subsections 5(a) through
155(h) of Part A of Section 18-8 of the School Code or under
16Section 18-8.15 of the School Code due to the operating tax
17rate falling from above the minimum requirement of that Section
18of the School Code to below the minimum requirement of that
19Section of the School Code due to the operation of this Law.
20 (c) Rules. The Department shall make and promulgate
21reasonable rules relating to the administration of the purposes
22and provisions of Sections 18-246 through 18-249 as may be
23necessary or appropriate.
24(Source: P.A. 89-1, eff. 2-12-95.)

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1 Section 17. The Illinois Pension Code is amended by
2changing Sections 16-158 and 17-127 as follows:
3 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
4 (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6 Sec. 16-158. Contributions by State and other employing
7units.
8 (a) The State shall make contributions to the System by
9means of appropriations from the Common School Fund and other
10State funds of amounts which, together with other employer
11contributions, employee contributions, investment income, and
12other income, will be sufficient to meet the cost of
13maintaining and administering the System on a 90% funded basis
14in accordance with actuarial recommendations.
15 The Board shall determine the amount of State contributions
16required for each fiscal year on the basis of the actuarial
17tables and other assumptions adopted by the Board and the
18recommendations of the actuary, using the formula in subsection
19(b-3).
20 (a-1) Annually, on or before November 15 until November 15,
212011, the Board shall certify to the Governor the amount of the
22required State contribution for the coming fiscal year. The
23certification under this subsection (a-1) shall include a copy
24of the actuarial recommendations upon which it is based and
25shall specifically identify the System's projected State

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1normal cost for that fiscal year.
2 On or before May 1, 2004, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2005, taking
5into account the amounts appropriated to and received by the
6System under subsection (d) of Section 7.2 of the General
7Obligation Bond Act.
8 On or before July 1, 2005, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2006, taking
11into account the changes in required State contributions made
12by this amendatory Act of the 94th General Assembly.
13 On or before April 1, 2011, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2011, applying
16the changes made by Public Act 96-889 to the System's assets
17and liabilities as of June 30, 2009 as though Public Act 96-889
18was approved on that date.
19 (a-5) On or before November 1 of each year, beginning
20November 1, 2012, the Board shall submit to the State Actuary,
21the Governor, and the General Assembly a proposed certification
22of the amount of the required State contribution to the System
23for the next fiscal year, along with all of the actuarial
24assumptions, calculations, and data upon which that proposed
25certification is based. On or before January 1 of each year,
26beginning January 1, 2013, the State Actuary shall issue a

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1preliminary report concerning the proposed certification and
2identifying, if necessary, recommended changes in actuarial
3assumptions that the Board must consider before finalizing its
4certification of the required State contributions. On or before
5January 15, 2013 and each January 15 thereafter, the Board
6shall certify to the Governor and the General Assembly the
7amount of the required State contribution for the next fiscal
8year. The Board's certification must note any deviations from
9the State Actuary's recommended changes, the reason or reasons
10for not following the State Actuary's recommended changes, and
11the fiscal impact of not following the State Actuary's
12recommended changes on the required State contribution.
13 (b) Through State fiscal year 1995, the State contributions
14shall be paid to the System in accordance with Section 18-7 of
15the School Code.
16 (b-1) Beginning in State fiscal year 1996, on the 15th day
17of each month, or as soon thereafter as may be practicable, the
18Board shall submit vouchers for payment of State contributions
19to the System, in a total monthly amount of one-twelfth of the
20required annual State contribution certified under subsection
21(a-1). From the effective date of this amendatory Act of the
2293rd General Assembly through June 30, 2004, the Board shall
23not submit vouchers for the remainder of fiscal year 2004 in
24excess of the fiscal year 2004 certified contribution amount
25determined under this Section after taking into consideration
26the transfer to the System under subsection (a) of Section

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16z-61 of the State Finance Act. These vouchers shall be paid by
2the State Comptroller and Treasurer by warrants drawn on the
3funds appropriated to the System for that fiscal year.
4 If in any month the amount remaining unexpended from all
5other appropriations to the System for the applicable fiscal
6year (including the appropriations to the System under Section
78.12 of the State Finance Act and Section 1 of the State
8Pension Funds Continuing Appropriation Act) is less than the
9amount lawfully vouchered under this subsection, the
10difference shall be paid from the Common School Fund under the
11continuing appropriation authority provided in Section 1.1 of
12the State Pension Funds Continuing Appropriation Act.
13 (b-2) Allocations from the Common School Fund apportioned
14to school districts not coming under this System shall not be
15diminished or affected by the provisions of this Article.
16 (b-3) For State fiscal years 2012 through 2045, the minimum
17contribution to the System to be made by the State for each
18fiscal year shall be an amount determined by the System to be
19sufficient to bring the total assets of the System up to 90% of
20the total actuarial liabilities of the System by the end of
21State fiscal year 2045. In making these determinations, the
22required State contribution shall be calculated each year as a
23level percentage of payroll over the years remaining to and
24including fiscal year 2045 and shall be determined under the
25projected unit credit actuarial cost method.
26 For State fiscal years 1996 through 2005, the State

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1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3so that by State fiscal year 2011, the State is contributing at
4the rate required under this Section; except that in the
5following specified State fiscal years, the State contribution
6to the System shall not be less than the following indicated
7percentages of the applicable employee payroll, even if the
8indicated percentage will produce a State contribution in
9excess of the amount otherwise required under this subsection
10and subsection (a), and notwithstanding any contrary
11certification made under subsection (a-1) before the effective
12date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
13in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
142003; and 13.56% in FY 2004.
15 Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2006 is
17$534,627,700.
18 Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2007 is
20$738,014,500.
21 For each of State fiscal years 2008 through 2009, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24from the required State contribution for State fiscal year
252007, so that by State fiscal year 2011, the State is
26contributing at the rate otherwise required under this Section.

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1 Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2010 is
3$2,089,268,000 and shall be made from the proceeds of bonds
4sold in fiscal year 2010 pursuant to Section 7.2 of the General
5Obligation Bond Act, less (i) the pro rata share of bond sale
6expenses determined by the System's share of total bond
7proceeds, (ii) any amounts received from the Common School Fund
8in fiscal year 2010, and (iii) any reduction in bond proceeds
9due to the issuance of discounted bonds, if applicable.
10 Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2011 is
12the amount recertified by the System on or before April 1, 2011
13pursuant to subsection (a-1) of this Section and shall be made
14from the proceeds of bonds sold in fiscal year 2011 pursuant to
15Section 7.2 of the General Obligation Bond Act, less (i) the
16pro rata share of bond sale expenses determined by the System's
17share of total bond proceeds, (ii) any amounts received from
18the Common School Fund in fiscal year 2011, and (iii) any
19reduction in bond proceeds due to the issuance of discounted
20bonds, if applicable. This amount shall include, in addition to
21the amount certified by the System, an amount necessary to meet
22employer contributions required by the State as an employer
23under paragraph (e) of this Section, which may also be used by
24the System for contributions required by paragraph (a) of
25Section 16-127.
26 Beginning in State fiscal year 2046, the minimum State

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1contribution for each fiscal year shall be the amount needed to
2maintain the total assets of the System at 90% of the total
3actuarial liabilities of the System.
4 Amounts received by the System pursuant to Section 25 of
5the Budget Stabilization Act or Section 8.12 of the State
6Finance Act in any fiscal year do not reduce and do not
7constitute payment of any portion of the minimum State
8contribution required under this Article in that fiscal year.
9Such amounts shall not reduce, and shall not be included in the
10calculation of, the required State contributions under this
11Article in any future year until the System has reached a
12funding ratio of at least 90%. A reference in this Article to
13the "required State contribution" or any substantially similar
14term does not include or apply to any amounts payable to the
15System under Section 25 of the Budget Stabilization Act.
16 Notwithstanding any other provision of this Section, the
17required State contribution for State fiscal year 2005 and for
18fiscal year 2008 and each fiscal year thereafter, as calculated
19under this Section and certified under subsection (a-1), shall
20not exceed an amount equal to (i) the amount of the required
21State contribution that would have been calculated under this
22Section for that fiscal year if the System had not received any
23payments under subsection (d) of Section 7.2 of the General
24Obligation Bond Act, minus (ii) the portion of the State's
25total debt service payments for that fiscal year on the bonds
26issued in fiscal year 2003 for the purposes of that Section

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17.2, as determined and certified by the Comptroller, that is
2the same as the System's portion of the total moneys
3distributed under subsection (d) of Section 7.2 of the General
4Obligation Bond Act. In determining this maximum for State
5fiscal years 2008 through 2010, however, the amount referred to
6in item (i) shall be increased, as a percentage of the
7applicable employee payroll, in equal increments calculated
8from the sum of the required State contribution for State
9fiscal year 2007 plus the applicable portion of the State's
10total debt service payments for fiscal year 2007 on the bonds
11issued in fiscal year 2003 for the purposes of Section 7.2 of
12the General Obligation Bond Act, so that, by State fiscal year
132011, the State is contributing at the rate otherwise required
14under this Section.
15 (c) Payment of the required State contributions and of all
16pensions, retirement annuities, death benefits, refunds, and
17other benefits granted under or assumed by this System, and all
18expenses in connection with the administration and operation
19thereof, are obligations of the State.
20 If members are paid from special trust or federal funds
21which are administered by the employing unit, whether school
22district or other unit, the employing unit shall pay to the
23System from such funds the full accruing retirement costs based
24upon that service, which, beginning July 1, 2018 2014, shall be
25at a rate, expressed as a percentage of salary, equal to the
26total employer's minimum contribution to the System to be made

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1by the State for that fiscal year, including both normal cost
2and unfunded liability components, expressed as a percentage of
3payroll, as determined by the System under subsection (b-3) of
4this Section. Employer contributions, based on salary paid to
5members from federal funds, may be forwarded by the
6distributing agency of the State of Illinois to the System
7prior to allocation, in an amount determined in accordance with
8guidelines established by such agency and the System. Any
9contribution for fiscal year 2015 collected as a result of the
10change made by this amendatory Act of the 98th General Assembly
11shall be considered a State contribution under subsection (b-3)
12of this Section.
13 (d) Effective July 1, 1986, any employer of a teacher as
14defined in paragraph (8) of Section 16-106 shall pay the
15employer's normal cost of benefits based upon the teacher's
16service, in addition to employee contributions, as determined
17by the System. Such employer contributions shall be forwarded
18monthly in accordance with guidelines established by the
19System.
20 However, with respect to benefits granted under Section
2116-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
22of Section 16-106, the employer's contribution shall be 12%
23(rather than 20%) of the member's highest annual salary rate
24for each year of creditable service granted, and the employer
25shall also pay the required employee contribution on behalf of
26the teacher. For the purposes of Sections 16-133.4 and

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116-133.5, a teacher as defined in paragraph (8) of Section
216-106 who is serving in that capacity while on leave of
3absence from another employer under this Article shall not be
4considered an employee of the employer from which the teacher
5is on leave.
6 (e) Beginning July 1, 1998, every employer of a teacher
7shall pay to the System an employer contribution computed as
8follows:
9 (1) Beginning July 1, 1998 through June 30, 1999, the
10 employer contribution shall be equal to 0.3% of each
11 teacher's salary.
12 (2) Beginning July 1, 1999 and thereafter, the employer
13 contribution shall be equal to 0.58% of each teacher's
14 salary.
15The school district or other employing unit may pay these
16employer contributions out of any source of funding available
17for that purpose and shall forward the contributions to the
18System on the schedule established for the payment of member
19contributions.
20 These employer contributions are intended to offset a
21portion of the cost to the System of the increases in
22retirement benefits resulting from this amendatory Act of 1998.
23 Each employer of teachers is entitled to a credit against
24the contributions required under this subsection (e) with
25respect to salaries paid to teachers for the period January 1,
262002 through June 30, 2003, equal to the amount paid by that

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1employer under subsection (a-5) of Section 6.6 of the State
2Employees Group Insurance Act of 1971 with respect to salaries
3paid to teachers for that period.
4 The additional 1% employee contribution required under
5Section 16-152 by this amendatory Act of 1998 is the
6responsibility of the teacher and not the teacher's employer,
7unless the employer agrees, through collective bargaining or
8otherwise, to make the contribution on behalf of the teacher.
9 If an employer is required by a contract in effect on May
101, 1998 between the employer and an employee organization to
11pay, on behalf of all its full-time employees covered by this
12Article, all mandatory employee contributions required under
13this Article, then the employer shall be excused from paying
14the employer contribution required under this subsection (e)
15for the balance of the term of that contract. The employer and
16the employee organization shall jointly certify to the System
17the existence of the contractual requirement, in such form as
18the System may prescribe. This exclusion shall cease upon the
19termination, extension, or renewal of the contract at any time
20after May 1, 1998.
21 (f) If the amount of a teacher's salary for any school year
22used to determine final average salary exceeds the member's
23annual full-time salary rate with the same employer for the
24previous school year by more than 6%, the teacher's employer
25shall pay to the System, in addition to all other payments
26required under this Section and in accordance with guidelines

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1established by the System, the present value of the increase in
2benefits resulting from the portion of the increase in salary
3that is in excess of 6%. This present value shall be computed
4by the System on the basis of the actuarial assumptions and
5tables used in the most recent actuarial valuation of the
6System that is available at the time of the computation. If a
7teacher's salary for the 2005-2006 school year is used to
8determine final average salary under this subsection (f), then
9the changes made to this subsection (f) by Public Act 94-1057
10shall apply in calculating whether the increase in his or her
11salary is in excess of 6%. For the purposes of this Section,
12change in employment under Section 10-21.12 of the School Code
13on or after June 1, 2005 shall constitute a change in employer.
14The System may require the employer to provide any pertinent
15information or documentation. The changes made to this
16subsection (f) by this amendatory Act of the 94th General
17Assembly apply without regard to whether the teacher was in
18service on or after its effective date.
19 Whenever it determines that a payment is or may be required
20under this subsection, the System shall calculate the amount of
21the payment and bill the employer for that amount. The bill
22shall specify the calculations used to determine the amount
23due. If the employer disputes the amount of the bill, it may,
24within 30 days after receipt of the bill, apply to the System
25in writing for a recalculation. The application must specify in
26detail the grounds of the dispute and, if the employer asserts

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1that the calculation is subject to subsection (g) or (h) of
2this Section, must include an affidavit setting forth and
3attesting to all facts within the employer's knowledge that are
4pertinent to the applicability of that subsection. Upon
5receiving a timely application for recalculation, the System
6shall review the application and, if appropriate, recalculate
7the amount due.
8 The employer contributions required under this subsection
9(f) may be paid in the form of a lump sum within 90 days after
10receipt of the bill. If the employer contributions are not paid
11within 90 days after receipt of the bill, then interest will be
12charged at a rate equal to the System's annual actuarially
13assumed rate of return on investment compounded annually from
14the 91st day after receipt of the bill. Payments must be
15concluded within 3 years after the employer's receipt of the
16bill.
17 (g) This subsection (g) applies only to payments made or
18salary increases given on or after June 1, 2005 but before July
191, 2011. The changes made by Public Act 94-1057 shall not
20require the System to refund any payments received before July
2131, 2006 (the effective date of Public Act 94-1057).
22 When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases paid to teachers
24under contracts or collective bargaining agreements entered
25into, amended, or renewed before June 1, 2005.
26 When assessing payment for any amount due under subsection

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1(f), the System shall exclude salary increases paid to a
2teacher at a time when the teacher is 10 or more years from
3retirement eligibility under Section 16-132 or 16-133.2.
4 When assessing payment for any amount due under subsection
5(f), the System shall exclude salary increases resulting from
6overload work, including summer school, when the school
7district has certified to the System, and the System has
8approved the certification, that (i) the overload work is for
9the sole purpose of classroom instruction in excess of the
10standard number of classes for a full-time teacher in a school
11district during a school year and (ii) the salary increases are
12equal to or less than the rate of pay for classroom instruction
13computed on the teacher's current salary and work schedule.
14 When assessing payment for any amount due under subsection
15(f), the System shall exclude a salary increase resulting from
16a promotion (i) for which the employee is required to hold a
17certificate or supervisory endorsement issued by the State
18Teacher Certification Board that is a different certification
19or supervisory endorsement than is required for the teacher's
20previous position and (ii) to a position that has existed and
21been filled by a member for no less than one complete academic
22year and the salary increase from the promotion is an increase
23that results in an amount no greater than the lesser of the
24average salary paid for other similar positions in the district
25requiring the same certification or the amount stipulated in
26the collective bargaining agreement for a similar position

SB0001 Engrossed- 31 -LRB100 06371 NHT 16410 b
1requiring the same certification.
2 When assessing payment for any amount due under subsection
3(f), the System shall exclude any payment to the teacher from
4the State of Illinois or the State Board of Education over
5which the employer does not have discretion, notwithstanding
6that the payment is included in the computation of final
7average salary.
8 (h) When assessing payment for any amount due under
9subsection (f), the System shall exclude any salary increase
10described in subsection (g) of this Section given on or after
11July 1, 2011 but before July 1, 2014 under a contract or
12collective bargaining agreement entered into, amended, or
13renewed on or after June 1, 2005 but before July 1, 2011.
14Notwithstanding any other provision of this Section, any
15payments made or salary increases given after June 30, 2014
16shall be used in assessing payment for any amount due under
17subsection (f) of this Section.
18 (i) The System shall prepare a report and file copies of
19the report with the Governor and the General Assembly by
20January 1, 2007 that contains all of the following information:
21 (1) The number of recalculations required by the
22 changes made to this Section by Public Act 94-1057 for each
23 employer.
24 (2) The dollar amount by which each employer's
25 contribution to the System was changed due to
26 recalculations required by Public Act 94-1057.

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1 (3) The total amount the System received from each
2 employer as a result of the changes made to this Section by
3 Public Act 94-4.
4 (4) The increase in the required State contribution
5 resulting from the changes made to this Section by Public
6 Act 94-1057.
7 (j) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11 As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18 (k) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
246-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
25 (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)

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1 Sec. 17-127. Financing; revenues for the Fund.
2 (a) The revenues for the Fund shall consist of: (1) amounts
3paid into the Fund by contributors thereto and from employer
4contributions and State appropriations in accordance with this
5Article; (2) amounts contributed to the Fund by an Employer;
6(3) amounts contributed to the Fund pursuant to any law now in
7force or hereafter to be enacted; (4) contributions from any
8other source; and (5) the earnings on investments.
9 (b) The General Assembly finds that for many years the
10State has contributed to the Fund an annual amount that is
11between 20% and 30% of the amount of the annual State
12contribution to the Article 16 retirement system, and the
13General Assembly declares that it is its goal and intention to
14continue this level of contribution to the Fund in the future.
15 (c) Beginning in State fiscal year 1999, the State shall
16include in its annual contribution to the Fund an additional
17amount equal to 0.544% of the Fund's total teacher payroll;
18except that this additional contribution need not be made in a
19fiscal year if the Board has certified in the previous fiscal
20year that the Fund is at least 90% funded, based on actuarial
21determinations. These additional State contributions are
22intended to offset a portion of the cost to the Fund of the
23increases in retirement benefits resulting from this
24amendatory Act of 1998.
25 (d) In addition to any other contribution required under
26this Article, including the contribution required under

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1subsection (c), the State shall contribute to the Fund the
2following amounts:
3 (1) For State fiscal year 2017, the State shall
4 contribute $215,200,000.
5 (2) For State fiscal year 2018, the State shall
6 contribute $221,300,000.
7 (3) Beginning in State fiscal year 2019, the State
8 shall contribute for each fiscal year an amount to be
9 determined by the Fund, equal to the employer normal cost
10 for that fiscal year, plus the amount allowed pursuant to
11 paragraph (3) of Section 17-142.1, to defray health
12 insurance costs.
13 (e) The Board shall determine the amount of State
14contributions required for each fiscal year on the basis of the
15actuarial tables and other assumptions adopted by the Board and
16the recommendations of the actuary. On or before November 1 of
17each year, beginning November 1, 2017, the Board shall submit
18to the State Actuary, the Governor, and the General Assembly a
19proposed certification of the amount of the required State
20contribution to the Fund for the next fiscal year, along with
21all of the actuarial assumptions, calculations, and data upon
22which that proposed certification is based.
23 On or before January 1 of each year, beginning January 1,
242018, the State Actuary shall issue a preliminary report
25concerning the proposed certification and identifying, if
26necessary, recommended changes in actuarial assumptions that

SB0001 Engrossed- 35 -LRB100 06371 NHT 16410 b
1the Board must consider before finalizing its certification of
2the required State contributions.
3 (f) On or before January 15, 2018 and each January 15
4thereafter, the Board shall certify to the Governor and the
5General Assembly the amount of the required State contribution
6for the next fiscal year. The certification shall include a
7copy of the actuarial recommendations upon which it is based
8and shall specifically identify the Fund's projected employer
9normal cost for that fiscal year. The Board's certification
10must note any deviations from the State Actuary's recommended
11changes, the reason or reasons for not following the State
12Actuary's recommended changes, and the fiscal impact of not
13following the State Actuary's recommended changes on the
14required State contribution.
15 For the purposes of this Article, including issuing
16vouchers, and for the purposes of subsection (h) of Section 1.1
17of the State Pension Funds Continuing Appropriation Act, the
18State contribution specified for State fiscal years 2017 and
192018 shall be deemed to have been certified, by operation of
20law and without official action by the Board or the State
21Actuary, in the amount provided in subsection (d) of this
22Section.
23 (g) Beginning in State fiscal year 2017, on the 15th day of
24each month, or as soon thereafter as may be practicable, the
25Board shall submit vouchers for payment of State contributions
26to the Fund, in a total monthly amount of one-twelfth of the

SB0001 Engrossed- 36 -LRB100 06371 NHT 16410 b
1required annual State contribution under subsection (d). These
2vouchers shall be paid by the State Comptroller and Treasurer
3by warrants drawn on the funds appropriated to the Fund for
4that fiscal year. If in any month the amount remaining
5unexpended from all other State appropriations to the Fund for
6the applicable fiscal year is less than the amount lawfully
7vouchered under this subsection, the difference shall be paid
8from the Common School Fund under the continuing appropriation
9authority provided in Section 1.1 of the State Pension Funds
10Continuing Appropriation Act.
11(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
1290-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
13 Section 18. The State Pension Funds Continuing
14Appropriation Act is amended by changing Section 1.1 as
15follows:
16 (40 ILCS 15/1.1)
17 Sec. 1.1. Appropriations to certain retirement systems.
18 (a) There is hereby appropriated from the General Revenue
19Fund to the General Assembly Retirement System, on a continuing
20monthly basis, the amount, if any, by which the total available
21amount of all other appropriations to that retirement system
22for the payment of State contributions is less than the total
23amount of the vouchers for required State contributions
24lawfully submitted by the retirement system for that month

SB0001 Engrossed- 37 -LRB100 06371 NHT 16410 b
1under Section 2-134 of the Illinois Pension Code.
2 (b) There is hereby appropriated from the General Revenue
3Fund to the State Universities Retirement System, on a
4continuing monthly basis, the amount, if any, by which the
5total available amount of all other appropriations to that
6retirement system for the payment of State contributions,
7including any deficiency in the required contributions of the
8optional retirement program established under Section 15-158.2
9of the Illinois Pension Code, is less than the total amount of
10the vouchers for required State contributions lawfully
11submitted by the retirement system for that month under Section
1215-165 of the Illinois Pension Code.
13 (c) There is hereby appropriated from the Common School
14Fund to the Teachers' Retirement System of the State of
15Illinois, on a continuing monthly basis, the amount, if any, by
16which the total available amount of all other appropriations to
17that retirement system for the payment of State contributions
18is less than the total amount of the vouchers for required
19State contributions lawfully submitted by the retirement
20system for that month under Section 16-158 of the Illinois
21Pension Code.
22 (d) There is hereby appropriated from the General Revenue
23Fund to the Judges Retirement System of Illinois, on a
24continuing monthly basis, the amount, if any, by which the
25total available amount of all other appropriations to that
26retirement system for the payment of State contributions is

SB0001 Engrossed- 38 -LRB100 06371 NHT 16410 b
1less than the total amount of the vouchers for required State
2contributions lawfully submitted by the retirement system for
3that month under Section 18-140 of the Illinois Pension Code.
4 (e) The continuing appropriations provided by subsections
5(a), (b), (c), and (d) of this Section shall first be available
6in State fiscal year 1996. The continuing appropriations
7provided by subsection (h) of this Section shall first be
8available as provided in that subsection (h).
9 (f) For State fiscal year 2010 only, the continuing
10appropriations provided by this Section are equal to the amount
11certified by each System on or before December 31, 2008, less
12(i) the gross proceeds of the bonds sold in fiscal year 2010
13under the authorization contained in subsection (a) of Section
147.2 of the General Obligation Bond Act and (ii) any amounts
15received from the State Pensions Fund.
16 (g) For State fiscal year 2011 only, the continuing
17appropriations provided by this Section are equal to the amount
18certified by each System on or before April 1, 2011, less (i)
19the gross proceeds of the bonds sold in fiscal year 2011 under
20the authorization contained in subsection (a) of Section 7.2 of
21the General Obligation Bond Act and (ii) any amounts received
22from the State Pensions Fund.
23 (h) There is hereby appropriated from the Common School
24Fund to the Public School Teachers' Pension and Retirement Fund
25of Chicago, on a continuing monthly basis, the amount, if any,
26by which the total available amount of all other State

SB0001 Engrossed- 39 -LRB100 06371 NHT 16410 b
1appropriations to that Retirement Fund for the payment of State
2contributions under subsection (d) of Section 17-127 of the
3Illinois Pension Code is less than the total amount of the
4vouchers for required State contributions lawfully submitted
5by the Retirement Fund for that month under that Section
617-127.
7(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
896-1511, eff. 1-27-11.)
9 Section 20. The Innovation Development and Economy Act is
10amended by changing Section 33 as follows:
11 (50 ILCS 470/33)
12 Sec. 33. STAR Bonds School Improvement and Operations Trust
13Fund.
14 (a) The STAR Bonds School Improvement and Operations Trust
15Fund is created as a trust fund in the State treasury. Deposits
16into the Trust Fund shall be made as provided under this
17Section. Moneys in the Trust Fund shall be used by the
18Department of Revenue only for the purpose of making payments
19to school districts in educational service regions that include
20or are adjacent to the STAR bond district. Moneys in the Trust
21Fund are not subject to appropriation and shall be used solely
22as provided in this Section. All deposits into the Trust Fund
23shall be held in the Trust Fund by the State Treasurer as ex
24officio custodian separate and apart from all public moneys or

SB0001 Engrossed- 40 -LRB100 06371 NHT 16410 b
1funds of this State and shall be administered by the Department
2exclusively for the purposes set forth in this Section. All
3moneys in the Trust Fund shall be invested and reinvested by
4the State Treasurer. All interest accruing from these
5investments shall be deposited in the Trust Fund.
6 (b) Upon approval of a STAR bond district, the political
7subdivision shall immediately transmit to the county clerk of
8the county in which the district is located a certified copy of
9the ordinance creating the district, a legal description of the
10district, a map of the district, identification of the year
11that the county clerk shall use for determining the total
12initial equalized assessed value of the district consistent
13with subsection (c), and a list of the parcel or tax
14identification number of each parcel of property included in
15the district.
16 (c) Upon approval of a STAR bond district, the county clerk
17immediately thereafter shall determine (i) the most recently
18ascertained equalized assessed value of each lot, block, tract,
19or parcel of real property within the STAR bond district, from
20which shall be deducted the homestead exemptions under Article
2115 of the Property Tax Code, which value shall be the initial
22equalized assessed value of each such piece of property, and
23(ii) the total equalized assessed value of all taxable real
24property within the district by adding together the most
25recently ascertained equalized assessed value of each taxable
26lot, block, tract, or parcel of real property within the

SB0001 Engrossed- 41 -LRB100 06371 NHT 16410 b
1district, from which shall be deducted the homestead exemptions
2under Article 15 of the Property Tax Code, and shall certify
3that amount as the total initial equalized assessed value of
4the taxable real property within the STAR bond district.
5 (d) In reference to any STAR bond district created within
6any political subdivision, and in respect to which the county
7clerk has certified the total initial equalized assessed value
8of the property in the area, the political subdivision may
9thereafter request the clerk in writing to adjust the initial
10equalized value of all taxable real property within the STAR
11bond district by deducting therefrom the exemptions under
12Article 15 of the Property Tax Code applicable to each lot,
13block, tract, or parcel of real property within the STAR bond
14district. The county clerk shall immediately, after the written
15request to adjust the total initial equalized value is
16received, determine the total homestead exemptions in the STAR
17bond district as provided under Article 15 of the Property Tax
18Code by adding together the homestead exemptions provided by
19said Article on each lot, block, tract, or parcel of real
20property within the STAR bond district and then shall deduct
21the total of said exemptions from the total initial equalized
22assessed value. The county clerk shall then promptly certify
23that amount as the total initial equalized assessed value as
24adjusted of the taxable real property within the STAR bond
25district.
26 (e) The county clerk or other person authorized by law

SB0001 Engrossed- 42 -LRB100 06371 NHT 16410 b
1shall compute the tax rates for each taxing district with all
2or a portion of its equalized assessed value located in the
3STAR bond district. The rate per cent of tax determined shall
4be extended to the current equalized assessed value of all
5property in the district in the same manner as the rate per
6cent of tax is extended to all other taxable property in the
7taxing district.
8 (f) Beginning with the assessment year in which the first
9destination user in the first STAR bond project in a STAR bond
10district makes its first retail sales and for each assessment
11year thereafter until final maturity of the last STAR bonds
12issued in the district, the county clerk or other person
13authorized by law shall determine the increase in equalized
14assessed value of all real property within the STAR bond
15district by subtracting the initial equalized assessed value of
16all property in the district certified under subsection (c)
17from the current equalized assessed value of all property in
18the district. Each year, the property taxes arising from the
19increase in equalized assessed value in the STAR bond district
20shall be determined for each taxing district and shall be
21certified to the county collector.
22 (g) Beginning with the year in which taxes are collected
23based on the assessment year in which the first destination
24user in the first STAR bond project in a STAR bond district
25makes its first retail sales and for each year thereafter until
26final maturity of the last STAR bonds issued in the district,

SB0001 Engrossed- 43 -LRB100 06371 NHT 16410 b
1the county collector shall, within 30 days after receipt of
2property taxes, transmit to the Department to be deposited into
3the STAR Bonds School Improvement and Operations Trust Fund 15%
4of property taxes attributable to the increase in equalized
5assessed value within the STAR bond district from each taxing
6district as certified in subsection (f).
7 (h) The Department shall pay to the regional superintendent
8of schools whose educational service region includes Franklin
9and Williamson Counties, for each year for which money is
10remitted to the Department and paid into the STAR Bonds School
11Improvement and Operations Trust Fund, the money in the Fund as
12provided in this Section. The amount paid to each school
13district shall be allocated proportionately, based on each
14qualifying school district's fall enrollment for the
15then-current school year, such that the school district with
16the largest fall enrollment receives the largest proportionate
17share of money paid out of the Fund or by any other method or
18formula that the regional superintendent of schools deems fit,
19equitable, and in the public interest. The regional
20superintendent may allocate moneys to school districts that are
21outside of his or her educational service region or to other
22regional superintendents.
23 The Department shall determine the distributions under
24this Section using its best judgment and information. The
25Department shall be held harmless for the distributions made
26under this Section and all distributions shall be final.

SB0001 Engrossed- 44 -LRB100 06371 NHT 16410 b
1 (i) In any year that an assessment appeal is filed, the
2extension of taxes on any assessment so appealed shall not be
3delayed. In the case of an assessment that is altered, any
4taxes extended upon the unauthorized assessment or part thereof
5shall be abated, or, if already paid, shall be refunded with
6interest as provided in Section 23-20 of the Property Tax Code.
7In the case of an assessment appeal, the county collector shall
8notify the Department that an assessment appeal has been filed
9and the amount of the tax that would have been deposited in the
10STAR Bonds School Improvement and Operations Trust Fund. The
11county collector shall hold that amount in a separate fund
12until the appeal process is final. After the appeal process is
13finalized, the county collector shall transmit to the
14Department the amount of tax that remains, if any, after all
15required refunds are made. The Department shall pay any amount
16deposited into the Trust Fund under this Section in the same
17proportion as determined for payments for that taxable year
18under subsection (h).
19 (j) In any year that ad valorem taxes are allocated to the
20STAR Bonds School Improvement and Operations Trust Fund, that
21allocation shall not reduce or otherwise impact the school aid
22provided to any school district under the general State school
23aid formula provided for in Section 18-8.05 of the School Code
24or the evidence-based funding formula provided for in Section
2518-8.15 of the School Code.
26(Source: P.A. 96-939, eff. 6-24-10.)

SB0001 Engrossed- 45 -LRB100 06371 NHT 16410 b
1 Section 25. The County Economic Development Project Area
2Property Tax Allocation Act is amended by changing Section 7 as
3follows:
4 (55 ILCS 85/7) (from Ch. 34, par. 7007)
5 Sec. 7. Creation of special tax allocation fund. If a
6county has adopted property tax allocation financing by
7ordinance for an economic development project area, the
8Department has approved and certified the economic development
9project area, and the county clerk has thereafter certified the
10"total initial equalized value" of the taxable real property
11within such economic development project area in the manner
12provided in subsection (b) of Section 6 of this Act, each year
13after the date of the certification by the county clerk of the
14"initial equalized assessed value" until economic development
15project costs and all county obligations financing economic
16development project costs have been paid, the ad valorem taxes,
17if any, arising from the levies upon the taxable real property
18in the economic development project area by taxing districts
19and tax rates determined in the manner provided in subsection
20(b) of Section 6 of this Act shall be divided as follows:
21 (1) That portion of the taxes levied upon each taxable
22 lot, block, tract or parcel of real property which is
23 attributable to the lower of the current equalized assessed
24 value or the initial equalized assessed value of each such

SB0001 Engrossed- 46 -LRB100 06371 NHT 16410 b
1 taxable lot, block, tract, or parcel of real property
2 existing at the time property tax allocation financing was
3 adopted shall be allocated and when collected shall be paid
4 by the county collector to the respective affected taxing
5 districts in the manner required by the law in the absence
6 of the adoption of property tax allocation financing.
7 (2) That portion, if any, of those taxes which is
8 attributable to the increase in the current equalized
9 assessed valuation of each taxable lot, block, tract, or
10 parcel of real property in the economic development project
11 are, over and above the initial equalized assessed value of
12 each property existing at the time property tax allocation
13 financing was adopted shall be allocated to and when
14 collected shall be paid to the county treasurer, who shall
15 deposit those taxes into a special fund called the special
16 tax allocation fund of the county for the purpose of paying
17 economic development project costs and obligations
18 incurred in the payment thereof.
19 The county, by an ordinance adopting property tax
20allocation financing, may pledge the funds in and to be
21deposited in the special tax allocation fund for the payment of
22obligations issued under this Act and for the payment of
23economic development project costs. No part of the current
24equalized assessed valuation of each property in the economic
25development project area attributable to any increase above the
26total initial equalized assessed value of such properties shall

SB0001 Engrossed- 47 -LRB100 06371 NHT 16410 b
1be used in calculating the general State school aid formula,
2provided for in Section 18-8 of the School Code, or the
3evidence-based funding formula, provided for in Section
418-8.15 of the School Code, until such time as all economic
5development projects costs have been paid as provided for in
6this Section.
7 Whenever a county issues bonds for the purpose of financing
8economic development project costs, the county may provide by
9ordinance for the appointment of a trustee, which may be any
10trust company within the State, and for the establishment of
11the funds or accounts to be maintained by such trustee as the
12county shall deem necessary to provide for the security and
13payment of the bonds. If the county provides for the
14appointment of a trustee, the trustee shall be considered the
15assignee of any payments assigned by the county pursuant to the
16ordinance and this Section. Any amounts paid to the trustee as
17assignee shall be deposited in the funds or accounts
18established pursuant to the trust agreement, and shall be held
19by the trustee in trust for the benefit of the holders of the
20bonds, and the holders shall have a lien on and a security
21interest in those bonds or accounts so long as the bonds remain
22outstanding and unpaid. Upon retirement of the bonds, the
23trustee shall pay over any excess amounts held to the county
24for deposit in the special tax allocation fund.
25 When the economic development project costs, including
26without limitation all county obligations financing economic

SB0001 Engrossed- 48 -LRB100 06371 NHT 16410 b
1development project costs incurred under this Act, have been
2paid, all surplus funds then remaining in the special tax
3allocation funds shall be distributed by being paid by the
4county treasurer to the county collector, who shall immediately
5thereafter pay those funds to the taxing districts having
6taxable property in the economic development project area in
7the same manner and proportion as the most recent distribution
8by the county collector to those taxing districts of real
9property taxes from real property in the economic development
10project area.
11 Upon the payment of all economic development project costs,
12retirement of obligations and the distribution of any excess
13monies pursuant to this Section and not later than 23 years
14from the date of adoption of the ordinance adopting property
15tax allocation financing, the county shall adopt an ordinance
16dissolving the special tax allocation fund for the economic
17development project area and terminating the designation of the
18economic development project area as an economic development
19project area; however, in relation to one or more contiguous
20parcels not exceeding a total area of 120 acres within which an
21electric generating facility is intended to be constructed, and
22with respect to which the owner of that proposed electric
23generating facility has entered into a redevelopment agreement
24with Grundy County on or before July 25, 2017, the ordinance of
25the county required in this paragraph shall not dissolve the
26special tax allocation fund for the existing economic

SB0001 Engrossed- 49 -LRB100 06371 NHT 16410 b
1development project area and shall only terminate the
2designation of the economic development project area as to
3those portions of the economic development project area
4excluding the area covered by the redevelopment agreement
5between the owner of the proposed electric generating facility
6and Grundy County; the county shall adopt an ordinance
7dissolving the special tax allocation fund for the economic
8development project area and terminating the designation of the
9economic development project area as an economic development
10project area with regard to the electric generating facility
11property not later than 35 years from the date of adoption of
12the ordinance adopting property tax allocation financing.
13Thereafter the rates of the taxing districts shall be extended
14and taxes levied, collected and distributed in the manner
15applicable in the absence of the adoption of property tax
16allocation financing.
17 Nothing in this Section shall be construed as relieving
18property in economic development project areas from being
19assessed as provided in the Property Tax Code or as relieving
20owners of that property from paying a uniform rate of taxes, as
21required by Section 4 of Article IX of the Illinois
22Constitution of 1970.
23(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
24 Section 30. The County Economic Development Project Area
25Tax Increment Allocation Act of 1991 is amended by changing

SB0001 Engrossed- 50 -LRB100 06371 NHT 16410 b
1Section 50 as follows:
2 (55 ILCS 90/50) (from Ch. 34, par. 8050)
3 Sec. 50. Special tax allocation fund.
4 (a) If a county clerk has certified the "total initial
5equalized assessed value" of the taxable real property within
6an economic development project area in the manner provided in
7Section 45, each year after the date of the certification by
8the county clerk of the "total initial equalized assessed
9value", until economic development project costs and all county
10obligations financing economic development project costs have
11been paid, the ad valorem taxes, if any, arising from the
12levies upon the taxable real property in the economic
13development project area by taxing districts and tax rates
14determined in the manner provided in subsection (b) of Section
1545 shall be divided as follows:
16 (1) That portion of the taxes levied upon each taxable
17 lot, block, tract, or parcel of real property that is
18 attributable to the lower of the current equalized assessed
19 value or the initial equalized assessed value of each
20 taxable lot, block, tract, or parcel of real property
21 existing at the time tax increment financing was adopted
22 shall be allocated to (and when collected shall be paid by
23 the county collector to) the respective affected taxing
24 districts in the manner required by law in the absence of
25 the adoption of tax increment allocation financing.

SB0001 Engrossed- 51 -LRB100 06371 NHT 16410 b
1 (2) That portion, if any, of the taxes that is
2 attributable to the increase in the current equalized
3 assessed valuation of each taxable lot, block, tract, or
4 parcel of real property in the economic development project
5 area, over and above the initial equalized assessed value
6 of each property existing at the time tax increment
7 financing was adopted, shall be allocated to (and when
8 collected shall be paid to) the county treasurer, who shall
9 deposit the taxes into a special fund (called the special
10 tax allocation fund of the county) for the purpose of
11 paying economic development project costs and obligations
12 incurred in the payment of those costs.
13 (b) The county, by an ordinance adopting tax increment
14allocation financing, may pledge the monies in and to be
15deposited into the special tax allocation fund for the payment
16of obligations issued under this Act and for the payment of
17economic development project costs. No part of the current
18equalized assessed valuation of each property in the economic
19development project area attributable to any increase above the
20total initial equalized assessed value of those properties
21shall be used in calculating the general State school aid
22formula under Section 18-8 of the School Code or the
23evidence-based funding formula under Section 18-8.15 of the
24School Code until all economic development projects costs have
25been paid as provided for in this Section.
26 (c) When the economic development projects costs,

SB0001 Engrossed- 52 -LRB100 06371 NHT 16410 b
1including without limitation all county obligations financing
2economic development project costs incurred under this Act,
3have been paid, all surplus monies then remaining in the
4special tax allocation fund shall be distributed by being paid
5by the county treasurer to the county collector, who shall
6immediately pay the monies to the taxing districts having
7taxable property in the economic development project area in
8the same manner and proportion as the most recent distribution
9by the county collector to those taxing districts of real
10property taxes from real property in the economic development
11project area.
12 (d) Upon the payment of all economic development project
13costs, retirement of obligations, and distribution of any
14excess monies under this Section, the county shall adopt an
15ordinance dissolving the special tax allocation fund for the
16economic development project area and terminating the
17designation of the economic development project area as an
18economic development project area. Thereafter, the rates of the
19taxing districts shall be extended and taxes shall be levied,
20collected, and distributed in the manner applicable in the
21absence of the adoption of tax increment allocation financing.
22 (e) Nothing in this Section shall be construed as relieving
23property in the economic development project areas from being
24assessed as provided in the Property Tax Code or as relieving
25owners of that property from paying a uniform rate of taxes as
26required by Section 4 of Article IX of the Illinois

SB0001 Engrossed- 53 -LRB100 06371 NHT 16410 b
1Constitution.
2(Source: P.A. 98-463, eff. 8-16-13.)
3 Section 35. The Illinois Municipal Code is amended by
4changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
5follows:
6 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
7 Sec. 11-74.4-3. Definitions. The following terms, wherever
8used or referred to in this Division 74.4 shall have the
9following respective meanings, unless in any case a different
10meaning clearly appears from the context.
11 (a) For any redevelopment project area that has been
12designated pursuant to this Section by an ordinance adopted
13prior to November 1, 1999 (the effective date of Public Act
1491-478), "blighted area" shall have the meaning set forth in
15this Section prior to that date.
16 On and after November 1, 1999, "blighted area" means any
17improved or vacant area within the boundaries of a
18redevelopment project area located within the territorial
19limits of the municipality where:
20 (1) If improved, industrial, commercial, and
21 residential buildings or improvements are detrimental to
22 the public safety, health, or welfare because of a
23 combination of 5 or more of the following factors, each of
24 which is (i) present, with that presence documented, to a

SB0001 Engrossed- 54 -LRB100 06371 NHT 16410 b
1 meaningful extent so that a municipality may reasonably
2 find that the factor is clearly present within the intent
3 of the Act and (ii) reasonably distributed throughout the
4 improved part of the redevelopment project area:
5 (A) Dilapidation. An advanced state of disrepair
6 or neglect of necessary repairs to the primary
7 structural components of buildings or improvements in
8 such a combination that a documented building
9 condition analysis determines that major repair is
10 required or the defects are so serious and so extensive
11 that the buildings must be removed.
12 (B) Obsolescence. The condition or process of
13 falling into disuse. Structures have become ill-suited
14 for the original use.
15 (C) Deterioration. With respect to buildings,
16 defects including, but not limited to, major defects in
17 the secondary building components such as doors,
18 windows, porches, gutters and downspouts, and fascia.
19 With respect to surface improvements, that the
20 condition of roadways, alleys, curbs, gutters,
21 sidewalks, off-street parking, and surface storage
22 areas evidence deterioration, including, but not
23 limited to, surface cracking, crumbling, potholes,
24 depressions, loose paving material, and weeds
25 protruding through paved surfaces.
26 (D) Presence of structures below minimum code

SB0001 Engrossed- 55 -LRB100 06371 NHT 16410 b
1 standards. All structures that do not meet the
2 standards of zoning, subdivision, building, fire, and
3 other governmental codes applicable to property, but
4 not including housing and property maintenance codes.
5 (E) Illegal use of individual structures. The use
6 of structures in violation of applicable federal,
7 State, or local laws, exclusive of those applicable to
8 the presence of structures below minimum code
9 standards.
10 (F) Excessive vacancies. The presence of buildings
11 that are unoccupied or under-utilized and that
12 represent an adverse influence on the area because of
13 the frequency, extent, or duration of the vacancies.
14 (G) Lack of ventilation, light, or sanitary
15 facilities. The absence of adequate ventilation for
16 light or air circulation in spaces or rooms without
17 windows, or that require the removal of dust, odor,
18 gas, smoke, or other noxious airborne materials.
19 Inadequate natural light and ventilation means the
20 absence of skylights or windows for interior spaces or
21 rooms and improper window sizes and amounts by room
22 area to window area ratios. Inadequate sanitary
23 facilities refers to the absence or inadequacy of
24 garbage storage and enclosure, bathroom facilities,
25 hot water and kitchens, and structural inadequacies
26 preventing ingress and egress to and from all rooms and

SB0001 Engrossed- 56 -LRB100 06371 NHT 16410 b
1 units within a building.
2 (H) Inadequate utilities. Underground and overhead
3 utilities such as storm sewers and storm drainage,
4 sanitary sewers, water lines, and gas, telephone, and
5 electrical services that are shown to be inadequate.
6 Inadequate utilities are those that are: (i) of
7 insufficient capacity to serve the uses in the
8 redevelopment project area, (ii) deteriorated,
9 antiquated, obsolete, or in disrepair, or (iii)
10 lacking within the redevelopment project area.
11 (I) Excessive land coverage and overcrowding of
12 structures and community facilities. The
13 over-intensive use of property and the crowding of
14 buildings and accessory facilities onto a site.
15 Examples of problem conditions warranting the
16 designation of an area as one exhibiting excessive land
17 coverage are: (i) the presence of buildings either
18 improperly situated on parcels or located on parcels of
19 inadequate size and shape in relation to present-day
20 standards of development for health and safety and (ii)
21 the presence of multiple buildings on a single parcel.
22 For there to be a finding of excessive land coverage,
23 these parcels must exhibit one or more of the following
24 conditions: insufficient provision for light and air
25 within or around buildings, increased threat of spread
26 of fire due to the close proximity of buildings, lack

SB0001 Engrossed- 57 -LRB100 06371 NHT 16410 b
1 of adequate or proper access to a public right-of-way,
2 lack of reasonably required off-street parking, or
3 inadequate provision for loading and service.
4 (J) Deleterious land use or layout. The existence
5 of incompatible land-use relationships, buildings
6 occupied by inappropriate mixed-uses, or uses
7 considered to be noxious, offensive, or unsuitable for
8 the surrounding area.
9 (K) Environmental clean-up. The proposed
10 redevelopment project area has incurred Illinois
11 Environmental Protection Agency or United States
12 Environmental Protection Agency remediation costs for,
13 or a study conducted by an independent consultant
14 recognized as having expertise in environmental
15 remediation has determined a need for, the clean-up of
16 hazardous waste, hazardous substances, or underground
17 storage tanks required by State or federal law,
18 provided that the remediation costs constitute a
19 material impediment to the development or
20 redevelopment of the redevelopment project area.
21 (L) Lack of community planning. The proposed
22 redevelopment project area was developed prior to or
23 without the benefit or guidance of a community plan.
24 This means that the development occurred prior to the
25 adoption by the municipality of a comprehensive or
26 other community plan or that the plan was not followed

SB0001 Engrossed- 58 -LRB100 06371 NHT 16410 b
1 at the time of the area's development. This factor must
2 be documented by evidence of adverse or incompatible
3 land-use relationships, inadequate street layout,
4 improper subdivision, parcels of inadequate shape and
5 size to meet contemporary development standards, or
6 other evidence demonstrating an absence of effective
7 community planning.
8 (M) The total equalized assessed value of the
9 proposed redevelopment project area has declined for 3
10 of the last 5 calendar years prior to the year in which
11 the redevelopment project area is designated or is
12 increasing at an annual rate that is less than the
13 balance of the municipality for 3 of the last 5
14 calendar years for which information is available or is
15 increasing at an annual rate that is less than the
16 Consumer Price Index for All Urban Consumers published
17 by the United States Department of Labor or successor
18 agency for 3 of the last 5 calendar years prior to the
19 year in which the redevelopment project area is
20 designated.
21 (2) If vacant, the sound growth of the redevelopment
22 project area is impaired by a combination of 2 or more of
23 the following factors, each of which is (i) present, with
24 that presence documented, to a meaningful extent so that a
25 municipality may reasonably find that the factor is clearly
26 present within the intent of the Act and (ii) reasonably

SB0001 Engrossed- 59 -LRB100 06371 NHT 16410 b
1 distributed throughout the vacant part of the
2 redevelopment project area to which it pertains:
3 (A) Obsolete platting of vacant land that results
4 in parcels of limited or narrow size or configurations
5 of parcels of irregular size or shape that would be
6 difficult to develop on a planned basis and in a manner
7 compatible with contemporary standards and
8 requirements, or platting that failed to create
9 rights-of-ways for streets or alleys or that created
10 inadequate right-of-way widths for streets, alleys, or
11 other public rights-of-way or that omitted easements
12 for public utilities.
13 (B) Diversity of ownership of parcels of vacant
14 land sufficient in number to retard or impede the
15 ability to assemble the land for development.
16 (C) Tax and special assessment delinquencies exist
17 or the property has been the subject of tax sales under
18 the Property Tax Code within the last 5 years.
19 (D) Deterioration of structures or site
20 improvements in neighboring areas adjacent to the
21 vacant land.
22 (E) The area has incurred Illinois Environmental
23 Protection Agency or United States Environmental
24 Protection Agency remediation costs for, or a study
25 conducted by an independent consultant recognized as
26 having expertise in environmental remediation has

SB0001 Engrossed- 60 -LRB100 06371 NHT 16410 b
1 determined a need for, the clean-up of hazardous waste,
2 hazardous substances, or underground storage tanks
3 required by State or federal law, provided that the
4 remediation costs constitute a material impediment to
5 the development or redevelopment of the redevelopment
6 project area.
7 (F) The total equalized assessed value of the
8 proposed redevelopment project area has declined for 3
9 of the last 5 calendar years prior to the year in which
10 the redevelopment project area is designated or is
11 increasing at an annual rate that is less than the
12 balance of the municipality for 3 of the last 5
13 calendar years for which information is available or is
14 increasing at an annual rate that is less than the
15 Consumer Price Index for All Urban Consumers published
16 by the United States Department of Labor or successor
17 agency for 3 of the last 5 calendar years prior to the
18 year in which the redevelopment project area is
19 designated.
20 (3) If vacant, the sound growth of the redevelopment
21 project area is impaired by one of the following factors
22 that (i) is present, with that presence documented, to a
23 meaningful extent so that a municipality may reasonably
24 find that the factor is clearly present within the intent
25 of the Act and (ii) is reasonably distributed throughout
26 the vacant part of the redevelopment project area to which

SB0001 Engrossed- 61 -LRB100 06371 NHT 16410 b
1 it pertains:
2 (A) The area consists of one or more unused
3 quarries, mines, or strip mine ponds.
4 (B) The area consists of unused rail yards, rail
5 tracks, or railroad rights-of-way.
6 (C) The area, prior to its designation, is subject
7 to (i) chronic flooding that adversely impacts on real
8 property in the area as certified by a registered
9 professional engineer or appropriate regulatory agency
10 or (ii) surface water that discharges from all or a
11 part of the area and contributes to flooding within the
12 same watershed, but only if the redevelopment project
13 provides for facilities or improvements to contribute
14 to the alleviation of all or part of the flooding.
15 (D) The area consists of an unused or illegal
16 disposal site containing earth, stone, building
17 debris, or similar materials that were removed from
18 construction, demolition, excavation, or dredge sites.
19 (E) Prior to November 1, 1999, the area is not less
20 than 50 nor more than 100 acres and 75% of which is
21 vacant (notwithstanding that the area has been used for
22 commercial agricultural purposes within 5 years prior
23 to the designation of the redevelopment project area),
24 and the area meets at least one of the factors itemized
25 in paragraph (1) of this subsection, the area has been
26 designated as a town or village center by ordinance or

SB0001 Engrossed- 62 -LRB100 06371 NHT 16410 b
1 comprehensive plan adopted prior to January 1, 1982,
2 and the area has not been developed for that designated
3 purpose.
4 (F) The area qualified as a blighted improved area
5 immediately prior to becoming vacant, unless there has
6 been substantial private investment in the immediately
7 surrounding area.
8 (b) For any redevelopment project area that has been
9designated pursuant to this Section by an ordinance adopted
10prior to November 1, 1999 (the effective date of Public Act
1191-478), "conservation area" shall have the meaning set forth
12in this Section prior to that date.
13 On and after November 1, 1999, "conservation area" means
14any improved area within the boundaries of a redevelopment
15project area located within the territorial limits of the
16municipality in which 50% or more of the structures in the area
17have an age of 35 years or more. Such an area is not yet a
18blighted area but because of a combination of 3 or more of the
19following factors is detrimental to the public safety, health,
20morals or welfare and such an area may become a blighted area:
21 (1) Dilapidation. An advanced state of disrepair or
22 neglect of necessary repairs to the primary structural
23 components of buildings or improvements in such a
24 combination that a documented building condition analysis
25 determines that major repair is required or the defects are
26 so serious and so extensive that the buildings must be

SB0001 Engrossed- 63 -LRB100 06371 NHT 16410 b
1 removed.
2 (2) Obsolescence. The condition or process of falling
3 into disuse. Structures have become ill-suited for the
4 original use.
5 (3) Deterioration. With respect to buildings, defects
6 including, but not limited to, major defects in the
7 secondary building components such as doors, windows,
8 porches, gutters and downspouts, and fascia. With respect
9 to surface improvements, that the condition of roadways,
10 alleys, curbs, gutters, sidewalks, off-street parking, and
11 surface storage areas evidence deterioration, including,
12 but not limited to, surface cracking, crumbling, potholes,
13 depressions, loose paving material, and weeds protruding
14 through paved surfaces.
15 (4) Presence of structures below minimum code
16 standards. All structures that do not meet the standards of
17 zoning, subdivision, building, fire, and other
18 governmental codes applicable to property, but not
19 including housing and property maintenance codes.
20 (5) Illegal use of individual structures. The use of
21 structures in violation of applicable federal, State, or
22 local laws, exclusive of those applicable to the presence
23 of structures below minimum code standards.
24 (6) Excessive vacancies. The presence of buildings
25 that are unoccupied or under-utilized and that represent an
26 adverse influence on the area because of the frequency,

SB0001 Engrossed- 64 -LRB100 06371 NHT 16410 b
1 extent, or duration of the vacancies.
2 (7) Lack of ventilation, light, or sanitary
3 facilities. The absence of adequate ventilation for light
4 or air circulation in spaces or rooms without windows, or
5 that require the removal of dust, odor, gas, smoke, or
6 other noxious airborne materials. Inadequate natural light
7 and ventilation means the absence or inadequacy of
8 skylights or windows for interior spaces or rooms and
9 improper window sizes and amounts by room area to window
10 area ratios. Inadequate sanitary facilities refers to the
11 absence or inadequacy of garbage storage and enclosure,
12 bathroom facilities, hot water and kitchens, and
13 structural inadequacies preventing ingress and egress to
14 and from all rooms and units within a building.
15 (8) Inadequate utilities. Underground and overhead
16 utilities such as storm sewers and storm drainage, sanitary
17 sewers, water lines, and gas, telephone, and electrical
18 services that are shown to be inadequate. Inadequate
19 utilities are those that are: (i) of insufficient capacity
20 to serve the uses in the redevelopment project area, (ii)
21 deteriorated, antiquated, obsolete, or in disrepair, or
22 (iii) lacking within the redevelopment project area.
23 (9) Excessive land coverage and overcrowding of
24 structures and community facilities. The over-intensive
25 use of property and the crowding of buildings and accessory
26 facilities onto a site. Examples of problem conditions

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1 warranting the designation of an area as one exhibiting
2 excessive land coverage are: the presence of buildings
3 either improperly situated on parcels or located on parcels
4 of inadequate size and shape in relation to present-day
5 standards of development for health and safety and the
6 presence of multiple buildings on a single parcel. For
7 there to be a finding of excessive land coverage, these
8 parcels must exhibit one or more of the following
9 conditions: insufficient provision for light and air
10 within or around buildings, increased threat of spread of
11 fire due to the close proximity of buildings, lack of
12 adequate or proper access to a public right-of-way, lack of
13 reasonably required off-street parking, or inadequate
14 provision for loading and service.
15 (10) Deleterious land use or layout. The existence of
16 incompatible land-use relationships, buildings occupied by
17 inappropriate mixed-uses, or uses considered to be
18 noxious, offensive, or unsuitable for the surrounding
19 area.
20 (11) Lack of community planning. The proposed
21 redevelopment project area was developed prior to or
22 without the benefit or guidance of a community plan. This
23 means that the development occurred prior to the adoption
24 by the municipality of a comprehensive or other community
25 plan or that the plan was not followed at the time of the
26 area's development. This factor must be documented by

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1 evidence of adverse or incompatible land-use
2 relationships, inadequate street layout, improper
3 subdivision, parcels of inadequate shape and size to meet
4 contemporary development standards, or other evidence
5 demonstrating an absence of effective community planning.
6 (12) The area has incurred Illinois Environmental
7 Protection Agency or United States Environmental
8 Protection Agency remediation costs for, or a study
9 conducted by an independent consultant recognized as
10 having expertise in environmental remediation has
11 determined a need for, the clean-up of hazardous waste,
12 hazardous substances, or underground storage tanks
13 required by State or federal law, provided that the
14 remediation costs constitute a material impediment to the
15 development or redevelopment of the redevelopment project
16 area.
17 (13) The total equalized assessed value of the proposed
18 redevelopment project area has declined for 3 of the last 5
19 calendar years for which information is available or is
20 increasing at an annual rate that is less than the balance
21 of the municipality for 3 of the last 5 calendar years for
22 which information is available or is increasing at an
23 annual rate that is less than the Consumer Price Index for
24 All Urban Consumers published by the United States
25 Department of Labor or successor agency for 3 of the last 5
26 calendar years for which information is available.

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1 (c) "Industrial park" means an area in a blighted or
2conservation area suitable for use by any manufacturing,
3industrial, research or transportation enterprise, of
4facilities to include but not be limited to factories, mills,
5processing plants, assembly plants, packing plants,
6fabricating plants, industrial distribution centers,
7warehouses, repair overhaul or service facilities, freight
8terminals, research facilities, test facilities or railroad
9facilities.
10 (d) "Industrial park conservation area" means an area
11within the boundaries of a redevelopment project area located
12within the territorial limits of a municipality that is a labor
13surplus municipality or within 1 1/2 miles of the territorial
14limits of a municipality that is a labor surplus municipality
15if the area is annexed to the municipality; which area is zoned
16as industrial no later than at the time the municipality by
17ordinance designates the redevelopment project area, and which
18area includes both vacant land suitable for use as an
19industrial park and a blighted area or conservation area
20contiguous to such vacant land.
21 (e) "Labor surplus municipality" means a municipality in
22which, at any time during the 6 months before the municipality
23by ordinance designates an industrial park conservation area,
24the unemployment rate was over 6% and was also 100% or more of
25the national average unemployment rate for that same time as
26published in the United States Department of Labor Bureau of

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1Labor Statistics publication entitled "The Employment
2Situation" or its successor publication. For the purpose of
3this subsection, if unemployment rate statistics for the
4municipality are not available, the unemployment rate in the
5municipality shall be deemed to be the same as the unemployment
6rate in the principal county in which the municipality is
7located.
8 (f) "Municipality" shall mean a city, village,
9incorporated town, or a township that is located in the
10unincorporated portion of a county with 3 million or more
11inhabitants, if the county adopted an ordinance that approved
12the township's redevelopment plan.
13 (g) "Initial Sales Tax Amounts" means the amount of taxes
14paid under the Retailers' Occupation Tax Act, Use Tax Act,
15Service Use Tax Act, the Service Occupation Tax Act, the
16Municipal Retailers' Occupation Tax Act, and the Municipal
17Service Occupation Tax Act by retailers and servicemen on
18transactions at places located in a State Sales Tax Boundary
19during the calendar year 1985.
20 (g-1) "Revised Initial Sales Tax Amounts" means the amount
21of taxes paid under the Retailers' Occupation Tax Act, Use Tax
22Act, Service Use Tax Act, the Service Occupation Tax Act, the
23Municipal Retailers' Occupation Tax Act, and the Municipal
24Service Occupation Tax Act by retailers and servicemen on
25transactions at places located within the State Sales Tax
26Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.

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1 (h) "Municipal Sales Tax Increment" means an amount equal
2to the increase in the aggregate amount of taxes paid to a
3municipality from the Local Government Tax Fund arising from
4sales by retailers and servicemen within the redevelopment
5project area or State Sales Tax Boundary, as the case may be,
6for as long as the redevelopment project area or State Sales
7Tax Boundary, as the case may be, exist over and above the
8aggregate amount of taxes as certified by the Illinois
9Department of Revenue and paid under the Municipal Retailers'
10Occupation Tax Act and the Municipal Service Occupation Tax Act
11by retailers and servicemen, on transactions at places of
12business located in the redevelopment project area or State
13Sales Tax Boundary, as the case may be, during the base year
14which shall be the calendar year immediately prior to the year
15in which the municipality adopted tax increment allocation
16financing. For purposes of computing the aggregate amount of
17such taxes for base years occurring prior to 1985, the
18Department of Revenue shall determine the Initial Sales Tax
19Amounts for such taxes and deduct therefrom an amount equal to
204% of the aggregate amount of taxes per year for each year the
21base year is prior to 1985, but not to exceed a total deduction
22of 12%. The amount so determined shall be known as the
23"Adjusted Initial Sales Tax Amounts". For purposes of
24determining the Municipal Sales Tax Increment, the Department
25of Revenue shall for each period subtract from the amount paid
26to the municipality from the Local Government Tax Fund arising

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1from sales by retailers and servicemen on transactions located
2in the redevelopment project area or the State Sales Tax
3Boundary, as the case may be, the certified Initial Sales Tax
4Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
5Initial Sales Tax Amounts for the Municipal Retailers'
6Occupation Tax Act and the Municipal Service Occupation Tax
7Act. For the State Fiscal Year 1989, this calculation shall be
8made by utilizing the calendar year 1987 to determine the tax
9amounts received. For the State Fiscal Year 1990, this
10calculation shall be made by utilizing the period from January
111, 1988, until September 30, 1988, to determine the tax amounts
12received from retailers and servicemen pursuant to the
13Municipal Retailers' Occupation Tax and the Municipal Service
14Occupation Tax Act, which shall have deducted therefrom
15nine-twelfths of the certified Initial Sales Tax Amounts, the
16Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
17Tax Amounts as appropriate. For the State Fiscal Year 1991,
18this calculation shall be made by utilizing the period from
19October 1, 1988, to June 30, 1989, to determine the tax amounts
20received from retailers and servicemen pursuant to the
21Municipal Retailers' Occupation Tax and the Municipal Service
22Occupation Tax Act which shall have deducted therefrom
23nine-twelfths of the certified Initial Sales Tax Amounts,
24Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
25Tax Amounts as appropriate. For every State Fiscal Year
26thereafter, the applicable period shall be the 12 months

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1beginning July 1 and ending June 30 to determine the tax
2amounts received which shall have deducted therefrom the
3certified Initial Sales Tax Amounts, the Adjusted Initial Sales
4Tax Amounts or the Revised Initial Sales Tax Amounts, as the
5case may be.
6 (i) "Net State Sales Tax Increment" means the sum of the
7following: (a) 80% of the first $100,000 of State Sales Tax
8Increment annually generated within a State Sales Tax Boundary;
9(b) 60% of the amount in excess of $100,000 but not exceeding
10$500,000 of State Sales Tax Increment annually generated within
11a State Sales Tax Boundary; and (c) 40% of all amounts in
12excess of $500,000 of State Sales Tax Increment annually
13generated within a State Sales Tax Boundary. If, however, a
14municipality established a tax increment financing district in
15a county with a population in excess of 3,000,000 before
16January 1, 1986, and the municipality entered into a contract
17or issued bonds after January 1, 1986, but before December 31,
181986, to finance redevelopment project costs within a State
19Sales Tax Boundary, then the Net State Sales Tax Increment
20means, for the fiscal years beginning July 1, 1990, and July 1,
211991, 100% of the State Sales Tax Increment annually generated
22within a State Sales Tax Boundary; and notwithstanding any
23other provision of this Act, for those fiscal years the
24Department of Revenue shall distribute to those municipalities
25100% of their Net State Sales Tax Increment before any
26distribution to any other municipality and regardless of

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1whether or not those other municipalities will receive 100% of
2their Net State Sales Tax Increment. For Fiscal Year 1999, and
3every year thereafter until the year 2007, for any municipality
4that has not entered into a contract or has not issued bonds
5prior to June 1, 1988 to finance redevelopment project costs
6within a State Sales Tax Boundary, the Net State Sales Tax
7Increment shall be calculated as follows: By multiplying the
8Net State Sales Tax Increment by 90% in the State Fiscal Year
91999; 80% in the State Fiscal Year 2000; 70% in the State
10Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
11State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
12in the State Fiscal Year 2005; 20% in the State Fiscal Year
132006; and 10% in the State Fiscal Year 2007. No payment shall
14be made for State Fiscal Year 2008 and thereafter.
15 Municipalities that issued bonds in connection with a
16redevelopment project in a redevelopment project area within
17the State Sales Tax Boundary prior to July 29, 1991, or that
18entered into contracts in connection with a redevelopment
19project in a redevelopment project area before June 1, 1988,
20shall continue to receive their proportional share of the
21Illinois Tax Increment Fund distribution until the date on
22which the redevelopment project is completed or terminated. If,
23however, a municipality that issued bonds in connection with a
24redevelopment project in a redevelopment project area within
25the State Sales Tax Boundary prior to July 29, 1991 retires the
26bonds prior to June 30, 2007 or a municipality that entered

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1into contracts in connection with a redevelopment project in a
2redevelopment project area before June 1, 1988 completes the
3contracts prior to June 30, 2007, then so long as the
4redevelopment project is not completed or is not terminated,
5the Net State Sales Tax Increment shall be calculated,
6beginning on the date on which the bonds are retired or the
7contracts are completed, as follows: By multiplying the Net
8State Sales Tax Increment by 60% in the State Fiscal Year 2002;
950% in the State Fiscal Year 2003; 40% in the State Fiscal Year
102004; 30% in the State Fiscal Year 2005; 20% in the State
11Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
12payment shall be made for State Fiscal Year 2008 and
13thereafter. Refunding of any bonds issued prior to July 29,
141991, shall not alter the Net State Sales Tax Increment.
15 (j) "State Utility Tax Increment Amount" means an amount
16equal to the aggregate increase in State electric and gas tax
17charges imposed on owners and tenants, other than residential
18customers, of properties located within the redevelopment
19project area under Section 9-222 of the Public Utilities Act,
20over and above the aggregate of such charges as certified by
21the Department of Revenue and paid by owners and tenants, other
22than residential customers, of properties within the
23redevelopment project area during the base year, which shall be
24the calendar year immediately prior to the year of the adoption
25of the ordinance authorizing tax increment allocation
26financing.

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1 (k) "Net State Utility Tax Increment" means the sum of the
2following: (a) 80% of the first $100,000 of State Utility Tax
3Increment annually generated by a redevelopment project area;
4(b) 60% of the amount in excess of $100,000 but not exceeding
5$500,000 of the State Utility Tax Increment annually generated
6by a redevelopment project area; and (c) 40% of all amounts in
7excess of $500,000 of State Utility Tax Increment annually
8generated by a redevelopment project area. For the State Fiscal
9Year 1999, and every year thereafter until the year 2007, for
10any municipality that has not entered into a contract or has
11not issued bonds prior to June 1, 1988 to finance redevelopment
12project costs within a redevelopment project area, the Net
13State Utility Tax Increment shall be calculated as follows: By
14multiplying the Net State Utility Tax Increment by 90% in the
15State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
16in the State Fiscal Year 2001; 60% in the State Fiscal Year
172002; 50% in the State Fiscal Year 2003; 40% in the State
18Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
19State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
20No payment shall be made for the State Fiscal Year 2008 and
21thereafter.
22 Municipalities that issue bonds in connection with the
23redevelopment project during the period from June 1, 1988 until
243 years after the effective date of this Amendatory Act of 1988
25shall receive the Net State Utility Tax Increment, subject to
26appropriation, for 15 State Fiscal Years after the issuance of

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1such bonds. For the 16th through the 20th State Fiscal Years
2after issuance of the bonds, the Net State Utility Tax
3Increment shall be calculated as follows: By multiplying the
4Net State Utility Tax Increment by 90% in year 16; 80% in year
517; 70% in year 18; 60% in year 19; and 50% in year 20.
6Refunding of any bonds issued prior to June 1, 1988, shall not
7alter the revised Net State Utility Tax Increment payments set
8forth above.
9 (l) "Obligations" mean bonds, loans, debentures, notes,
10special certificates or other evidence of indebtedness issued
11by the municipality to carry out a redevelopment project or to
12refund outstanding obligations.
13 (m) "Payment in lieu of taxes" means those estimated tax
14revenues from real property in a redevelopment project area
15derived from real property that has been acquired by a
16municipality which according to the redevelopment project or
17plan is to be used for a private use which taxing districts
18would have received had a municipality not acquired the real
19property and adopted tax increment allocation financing and
20which would result from levies made after the time of the
21adoption of tax increment allocation financing to the time the
22current equalized value of real property in the redevelopment
23project area exceeds the total initial equalized value of real
24property in said area.
25 (n) "Redevelopment plan" means the comprehensive program
26of the municipality for development or redevelopment intended

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1by the payment of redevelopment project costs to reduce or
2eliminate those conditions the existence of which qualified the
3redevelopment project area as a "blighted area" or
4"conservation area" or combination thereof or "industrial park
5conservation area," and thereby to enhance the tax bases of the
6taxing districts which extend into the redevelopment project
7area, provided that, with respect to redevelopment project
8areas described in subsections (p-1) and (p-2), "redevelopment
9plan" means the comprehensive program of the affected
10municipality for the development of qualifying transit
11facilities. On and after November 1, 1999 (the effective date
12of Public Act 91-478), no redevelopment plan may be approved or
13amended that includes the development of vacant land (i) with a
14golf course and related clubhouse and other facilities or (ii)
15designated by federal, State, county, or municipal government
16as public land for outdoor recreational activities or for
17nature preserves and used for that purpose within 5 years prior
18to the adoption of the redevelopment plan. For the purpose of
19this subsection, "recreational activities" is limited to mean
20camping and hunting. Each redevelopment plan shall set forth in
21writing the program to be undertaken to accomplish the
22objectives and shall include but not be limited to:
23 (A) an itemized list of estimated redevelopment
24 project costs;
25 (B) evidence indicating that the redevelopment project
26 area on the whole has not been subject to growth and

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1 development through investment by private enterprise,
2 provided that such evidence shall not be required for any
3 redevelopment project area located within a transit
4 facility improvement area established pursuant to Section
5 11-74.4-3.3;
6 (C) an assessment of any financial impact of the
7 redevelopment project area on or any increased demand for
8 services from any taxing district affected by the plan and
9 any program to address such financial impact or increased
10 demand;
11 (D) the sources of funds to pay costs;
12 (E) the nature and term of the obligations to be
13 issued;
14 (F) the most recent equalized assessed valuation of the
15 redevelopment project area;
16 (G) an estimate as to the equalized assessed valuation
17 after redevelopment and the general land uses to apply in
18 the redevelopment project area;
19 (H) a commitment to fair employment practices and an
20 affirmative action plan;
21 (I) if it concerns an industrial park conservation
22 area, the plan shall also include a general description of
23 any proposed developer, user and tenant of any property, a
24 description of the type, structure and general character of
25 the facilities to be developed, a description of the type,
26 class and number of new employees to be employed in the

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1 operation of the facilities to be developed; and
2 (J) if property is to be annexed to the municipality,
3 the plan shall include the terms of the annexation
4 agreement.
5 The provisions of items (B) and (C) of this subsection (n)
6shall not apply to a municipality that before March 14, 1994
7(the effective date of Public Act 88-537) had fixed, either by
8its corporate authorities or by a commission designated under
9subsection (k) of Section 11-74.4-4, a time and place for a
10public hearing as required by subsection (a) of Section
1111-74.4-5. No redevelopment plan shall be adopted unless a
12municipality complies with all of the following requirements:
13 (1) The municipality finds that the redevelopment
14 project area on the whole has not been subject to growth
15 and development through investment by private enterprise
16 and would not reasonably be anticipated to be developed
17 without the adoption of the redevelopment plan, provided,
18 however, that such a finding shall not be required with
19 respect to any redevelopment project area located within a
20 transit facility improvement area established pursuant to
21 Section 11-74.4-3.3.
22 (2) The municipality finds that the redevelopment plan
23 and project conform to the comprehensive plan for the
24 development of the municipality as a whole, or, for
25 municipalities with a population of 100,000 or more,
26 regardless of when the redevelopment plan and project was

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1 adopted, the redevelopment plan and project either: (i)
2 conforms to the strategic economic development or
3 redevelopment plan issued by the designated planning
4 authority of the municipality, or (ii) includes land uses
5 that have been approved by the planning commission of the
6 municipality.
7 (3) The redevelopment plan establishes the estimated
8 dates of completion of the redevelopment project and
9 retirement of obligations issued to finance redevelopment
10 project costs. Those dates may not be later than the dates
11 set forth under Section 11-74.4-3.5.
12 A municipality may by municipal ordinance amend an
13 existing redevelopment plan to conform to this paragraph
14 (3) as amended by Public Act 91-478, which municipal
15 ordinance may be adopted without further hearing or notice
16 and without complying with the procedures provided in this
17 Act pertaining to an amendment to or the initial approval
18 of a redevelopment plan and project and designation of a
19 redevelopment project area.
20 (3.5) The municipality finds, in the case of an
21 industrial park conservation area, also that the
22 municipality is a labor surplus municipality and that the
23 implementation of the redevelopment plan will reduce
24 unemployment, create new jobs and by the provision of new
25 facilities enhance the tax base of the taxing districts
26 that extend into the redevelopment project area.

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1 (4) If any incremental revenues are being utilized
2 under Section 8(a)(1) or 8(a)(2) of this Act in
3 redevelopment project areas approved by ordinance after
4 January 1, 1986, the municipality finds: (a) that the
5 redevelopment project area would not reasonably be
6 developed without the use of such incremental revenues, and
7 (b) that such incremental revenues will be exclusively
8 utilized for the development of the redevelopment project
9 area.
10 (5) If: (a) the redevelopment plan will not result in
11 displacement of residents from 10 or more inhabited
12 residential units, and the municipality certifies in the
13 plan that such displacement will not result from the plan;
14 or (b) the redevelopment plan is for a redevelopment
15 project area located within a transit facility improvement
16 area established pursuant to Section 11-74.4-3.3, and the
17 applicable project is subject to the process for evaluation
18 of environmental effects under the National Environmental
19 Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
20 housing impact study need not be performed. If, however,
21 the redevelopment plan would result in the displacement of
22 residents from 10 or more inhabited residential units, or
23 if the redevelopment project area contains 75 or more
24 inhabited residential units and no certification is made,
25 then the municipality shall prepare, as part of the
26 separate feasibility report required by subsection (a) of

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1 Section 11-74.4-5, a housing impact study.
2 Part I of the housing impact study shall include (i)
3 data as to whether the residential units are single family
4 or multi-family units, (ii) the number and type of rooms
5 within the units, if that information is available, (iii)
6 whether the units are inhabited or uninhabited, as
7 determined not less than 45 days before the date that the
8 ordinance or resolution required by subsection (a) of
9 Section 11-74.4-5 is passed, and (iv) data as to the racial
10 and ethnic composition of the residents in the inhabited
11 residential units. The data requirement as to the racial
12 and ethnic composition of the residents in the inhabited
13 residential units shall be deemed to be fully satisfied by
14 data from the most recent federal census.
15 Part II of the housing impact study shall identify the
16 inhabited residential units in the proposed redevelopment
17 project area that are to be or may be removed. If inhabited
18 residential units are to be removed, then the housing
19 impact study shall identify (i) the number and location of
20 those units that will or may be removed, (ii) the
21 municipality's plans for relocation assistance for those
22 residents in the proposed redevelopment project area whose
23 residences are to be removed, (iii) the availability of
24 replacement housing for those residents whose residences
25 are to be removed, and shall identify the type, location,
26 and cost of the housing, and (iv) the type and extent of

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1 relocation assistance to be provided.
2 (6) On and after November 1, 1999, the housing impact
3 study required by paragraph (5) shall be incorporated in
4 the redevelopment plan for the redevelopment project area.
5 (7) On and after November 1, 1999, no redevelopment
6 plan shall be adopted, nor an existing plan amended, nor
7 shall residential housing that is occupied by households of
8 low-income and very low-income persons in currently
9 existing redevelopment project areas be removed after
10 November 1, 1999 unless the redevelopment plan provides,
11 with respect to inhabited housing units that are to be
12 removed for households of low-income and very low-income
13 persons, affordable housing and relocation assistance not
14 less than that which would be provided under the federal
15 Uniform Relocation Assistance and Real Property
16 Acquisition Policies Act of 1970 and the regulations under
17 that Act, including the eligibility criteria. Affordable
18 housing may be either existing or newly constructed
19 housing. For purposes of this paragraph (7), "low-income
20 households", "very low-income households", and "affordable
21 housing" have the meanings set forth in the Illinois
22 Affordable Housing Act. The municipality shall make a good
23 faith effort to ensure that this affordable housing is
24 located in or near the redevelopment project area within
25 the municipality.
26 (8) On and after November 1, 1999, if, after the

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1 adoption of the redevelopment plan for the redevelopment
2 project area, any municipality desires to amend its
3 redevelopment plan to remove more inhabited residential
4 units than specified in its original redevelopment plan,
5 that change shall be made in accordance with the procedures
6 in subsection (c) of Section 11-74.4-5.
7 (9) For redevelopment project areas designated prior
8 to November 1, 1999, the redevelopment plan may be amended
9 without further joint review board meeting or hearing,
10 provided that the municipality shall give notice of any
11 such changes by mail to each affected taxing district and
12 registrant on the interested party registry, to authorize
13 the municipality to expend tax increment revenues for
14 redevelopment project costs defined by paragraphs (5) and
15 (7.5), subparagraphs (E) and (F) of paragraph (11), and
16 paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
17 long as the changes do not increase the total estimated
18 redevelopment project costs set out in the redevelopment
19 plan by more than 5% after adjustment for inflation from
20 the date the plan was adopted.
21 (o) "Redevelopment project" means any public and private
22development project in furtherance of the objectives of a
23redevelopment plan. On and after November 1, 1999 (the
24effective date of Public Act 91-478), no redevelopment plan may
25be approved or amended that includes the development of vacant
26land (i) with a golf course and related clubhouse and other

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1facilities or (ii) designated by federal, State, county, or
2municipal government as public land for outdoor recreational
3activities or for nature preserves and used for that purpose
4within 5 years prior to the adoption of the redevelopment plan.
5For the purpose of this subsection, "recreational activities"
6is limited to mean camping and hunting.
7 (p) "Redevelopment project area" means an area designated
8by the municipality, which is not less in the aggregate than 1
91/2 acres and in respect to which the municipality has made a
10finding that there exist conditions which cause the area to be
11classified as an industrial park conservation area or a
12blighted area or a conservation area, or a combination of both
13blighted areas and conservation areas.
14 (p-1) Notwithstanding any provision of this Act to the
15contrary, on and after August 25, 2009 (the effective date of
16Public Act 96-680), a redevelopment project area may include
17areas within a one-half mile radius of an existing or proposed
18Regional Transportation Authority Suburban Transit Access
19Route (STAR Line) station without a finding that the area is
20classified as an industrial park conservation area, a blighted
21area, a conservation area, or a combination thereof, but only
22if the municipality receives unanimous consent from the joint
23review board created to review the proposed redevelopment
24project area.
25 (p-2) Notwithstanding any provision of this Act to the
26contrary, on and after the effective date of this amendatory

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1Act of the 99th General Assembly, a redevelopment project area
2may include areas within a transit facility improvement area
3that has been established pursuant to Section 11-74.4-3.3
4without a finding that the area is classified as an industrial
5park conservation area, a blighted area, a conservation area,
6or any combination thereof.
7 (q) "Redevelopment project costs", except for
8redevelopment project areas created pursuant to subsection
9subsections (p-1) or (p-2), means and includes the sum total of
10all reasonable or necessary costs incurred or estimated to be
11incurred, and any such costs incidental to a redevelopment plan
12and a redevelopment project. Such costs include, without
13limitation, the following:
14 (1) Costs of studies, surveys, development of plans,
15 and specifications, implementation and administration of
16 the redevelopment plan including but not limited to staff
17 and professional service costs for architectural,
18 engineering, legal, financial, planning or other services,
19 provided however that no charges for professional services
20 may be based on a percentage of the tax increment
21 collected; except that on and after November 1, 1999 (the
22 effective date of Public Act 91-478), no contracts for
23 professional services, excluding architectural and
24 engineering services, may be entered into if the terms of
25 the contract extend beyond a period of 3 years. In
26 addition, "redevelopment project costs" shall not include

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1 lobbying expenses. After consultation with the
2 municipality, each tax increment consultant or advisor to a
3 municipality that plans to designate or has designated a
4 redevelopment project area shall inform the municipality
5 in writing of any contracts that the consultant or advisor
6 has entered into with entities or individuals that have
7 received, or are receiving, payments financed by tax
8 increment revenues produced by the redevelopment project
9 area with respect to which the consultant or advisor has
10 performed, or will be performing, service for the
11 municipality. This requirement shall be satisfied by the
12 consultant or advisor before the commencement of services
13 for the municipality and thereafter whenever any other
14 contracts with those individuals or entities are executed
15 by the consultant or advisor;
16 (1.5) After July 1, 1999, annual administrative costs
17 shall not include general overhead or administrative costs
18 of the municipality that would still have been incurred by
19 the municipality if the municipality had not designated a
20 redevelopment project area or approved a redevelopment
21 plan;
22 (1.6) The cost of marketing sites within the
23 redevelopment project area to prospective businesses,
24 developers, and investors;
25 (2) Property assembly costs, including but not limited
26 to acquisition of land and other property, real or

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1 personal, or rights or interests therein, demolition of
2 buildings, site preparation, site improvements that serve
3 as an engineered barrier addressing ground level or below
4 ground environmental contamination, including, but not
5 limited to parking lots and other concrete or asphalt
6 barriers, and the clearing and grading of land;
7 (3) Costs of rehabilitation, reconstruction or repair
8 or remodeling of existing public or private buildings,
9 fixtures, and leasehold improvements; and the cost of
10 replacing an existing public building if pursuant to the
11 implementation of a redevelopment project the existing
12 public building is to be demolished to use the site for
13 private investment or devoted to a different use requiring
14 private investment; including any direct or indirect costs
15 relating to Green Globes or LEED certified construction
16 elements or construction elements with an equivalent
17 certification;
18 (4) Costs of the construction of public works or
19 improvements, including any direct or indirect costs
20 relating to Green Globes or LEED certified construction
21 elements or construction elements with an equivalent
22 certification, except that on and after November 1, 1999,
23 redevelopment project costs shall not include the cost of
24 constructing a new municipal public building principally
25 used to provide offices, storage space, or conference
26 facilities or vehicle storage, maintenance, or repair for

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1 administrative, public safety, or public works personnel
2 and that is not intended to replace an existing public
3 building as provided under paragraph (3) of subsection (q)
4 of Section 11-74.4-3 unless either (i) the construction of
5 the new municipal building implements a redevelopment
6 project that was included in a redevelopment plan that was
7 adopted by the municipality prior to November 1, 1999, (ii)
8 the municipality makes a reasonable determination in the
9 redevelopment plan, supported by information that provides
10 the basis for that determination, that the new municipal
11 building is required to meet an increase in the need for
12 public safety purposes anticipated to result from the
13 implementation of the redevelopment plan, or (iii) the new
14 municipal public building is for the storage, maintenance,
15 or repair of transit vehicles and is located in a transit
16 facility improvement area that has been established
17 pursuant to Section 11-74.4-3.3;
18 (5) Costs of job training and retraining projects,
19 including the cost of "welfare to work" programs
20 implemented by businesses located within the redevelopment
21 project area;
22 (6) Financing costs, including but not limited to all
23 necessary and incidental expenses related to the issuance
24 of obligations and which may include payment of interest on
25 any obligations issued hereunder including interest
26 accruing during the estimated period of construction of any

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1 redevelopment project for which such obligations are
2 issued and for not exceeding 36 months thereafter and
3 including reasonable reserves related thereto;
4 (7) To the extent the municipality by written agreement
5 accepts and approves the same, all or a portion of a taxing
6 district's capital costs resulting from the redevelopment
7 project necessarily incurred or to be incurred within a
8 taxing district in furtherance of the objectives of the
9 redevelopment plan and project; .
10 (7.5) For redevelopment project areas designated (or
11 redevelopment project areas amended to add or increase the
12 number of tax-increment-financing assisted housing units)
13 on or after November 1, 1999, an elementary, secondary, or
14 unit school district's increased costs attributable to
15 assisted housing units located within the redevelopment
16 project area for which the developer or redeveloper
17 receives financial assistance through an agreement with
18 the municipality or because the municipality incurs the
19 cost of necessary infrastructure improvements within the
20 boundaries of the assisted housing sites necessary for the
21 completion of that housing as authorized by this Act, and
22 which costs shall be paid by the municipality from the
23 Special Tax Allocation Fund when the tax increment revenue
24 is received as a result of the assisted housing units and
25 shall be calculated annually as follows:
26 (A) for foundation districts, excluding any school

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1 district in a municipality with a population in excess
2 of 1,000,000, by multiplying the district's increase
3 in attendance resulting from the net increase in new
4 students enrolled in that school district who reside in
5 housing units within the redevelopment project area
6 that have received financial assistance through an
7 agreement with the municipality or because the
8 municipality incurs the cost of necessary
9 infrastructure improvements within the boundaries of
10 the housing sites necessary for the completion of that
11 housing as authorized by this Act since the designation
12 of the redevelopment project area by the most recently
13 available per capita tuition cost as defined in Section
14 10-20.12a of the School Code less any increase in
15 general State aid as defined in Section 18-8.05 of the
16 School Code or evidence-based funding as defined in
17 Section 18-8.15 of the School Code attributable to
18 these added new students subject to the following
19 annual limitations:
20 (i) for unit school districts with a district
21 average 1995-96 Per Capita Tuition Charge of less
22 than $5,900, no more than 25% of the total amount
23 of property tax increment revenue produced by
24 those housing units that have received tax
25 increment finance assistance under this Act;
26 (ii) for elementary school districts with a

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1 district average 1995-96 Per Capita Tuition Charge
2 of less than $5,900, no more than 17% of the total
3 amount of property tax increment revenue produced
4 by those housing units that have received tax
5 increment finance assistance under this Act; and
6 (iii) for secondary school districts with a
7 district average 1995-96 Per Capita Tuition Charge
8 of less than $5,900, no more than 8% of the total
9 amount of property tax increment revenue produced
10 by those housing units that have received tax
11 increment finance assistance under this Act.
12 (B) For alternate method districts, flat grant
13 districts, and foundation districts with a district
14 average 1995-96 Per Capita Tuition Charge equal to or
15 more than $5,900, excluding any school district with a
16 population in excess of 1,000,000, by multiplying the
17 district's increase in attendance resulting from the
18 net increase in new students enrolled in that school
19 district who reside in housing units within the
20 redevelopment project area that have received
21 financial assistance through an agreement with the
22 municipality or because the municipality incurs the
23 cost of necessary infrastructure improvements within
24 the boundaries of the housing sites necessary for the
25 completion of that housing as authorized by this Act
26 since the designation of the redevelopment project

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1 area by the most recently available per capita tuition
2 cost as defined in Section 10-20.12a of the School Code
3 less any increase in general state aid as defined in
4 Section 18-8.05 of the School Code or evidence-based
5 funding as defined in Section 18-8.15 of the School
6 Code attributable to these added new students subject
7 to the following annual limitations:
8 (i) for unit school districts, no more than 40%
9 of the total amount of property tax increment
10 revenue produced by those housing units that have
11 received tax increment finance assistance under
12 this Act;
13 (ii) for elementary school districts, no more
14 than 27% of the total amount of property tax
15 increment revenue produced by those housing units
16 that have received tax increment finance
17 assistance under this Act; and
18 (iii) for secondary school districts, no more
19 than 13% of the total amount of property tax
20 increment revenue produced by those housing units
21 that have received tax increment finance
22 assistance under this Act.
23 (C) For any school district in a municipality with
24 a population in excess of 1,000,000, the following
25 restrictions shall apply to the reimbursement of
26 increased costs under this paragraph (7.5):

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1 (i) no increased costs shall be reimbursed
2 unless the school district certifies that each of
3 the schools affected by the assisted housing
4 project is at or over its student capacity;
5 (ii) the amount reimbursable shall be reduced
6 by the value of any land donated to the school
7 district by the municipality or developer, and by
8 the value of any physical improvements made to the
9 schools by the municipality or developer; and
10 (iii) the amount reimbursed may not affect
11 amounts otherwise obligated by the terms of any
12 bonds, notes, or other funding instruments, or the
13 terms of any redevelopment agreement.
14 Any school district seeking payment under this
15 paragraph (7.5) shall, after July 1 and before
16 September 30 of each year, provide the municipality
17 with reasonable evidence to support its claim for
18 reimbursement before the municipality shall be
19 required to approve or make the payment to the school
20 district. If the school district fails to provide the
21 information during this period in any year, it shall
22 forfeit any claim to reimbursement for that year.
23 School districts may adopt a resolution waiving the
24 right to all or a portion of the reimbursement
25 otherwise required by this paragraph (7.5). By
26 acceptance of this reimbursement the school district

SB0001 Engrossed- 94 -LRB100 06371 NHT 16410 b
1 waives the right to directly or indirectly set aside,
2 modify, or contest in any manner the establishment of
3 the redevelopment project area or projects;
4 (7.7) For redevelopment project areas designated (or
5 redevelopment project areas amended to add or increase the
6 number of tax-increment-financing assisted housing units)
7 on or after January 1, 2005 (the effective date of Public
8 Act 93-961), a public library district's increased costs
9 attributable to assisted housing units located within the
10 redevelopment project area for which the developer or
11 redeveloper receives financial assistance through an
12 agreement with the municipality or because the
13 municipality incurs the cost of necessary infrastructure
14 improvements within the boundaries of the assisted housing
15 sites necessary for the completion of that housing as
16 authorized by this Act shall be paid to the library
17 district by the municipality from the Special Tax
18 Allocation Fund when the tax increment revenue is received
19 as a result of the assisted housing units. This paragraph
20 (7.7) applies only if (i) the library district is located
21 in a county that is subject to the Property Tax Extension
22 Limitation Law or (ii) the library district is not located
23 in a county that is subject to the Property Tax Extension
24 Limitation Law but the district is prohibited by any other
25 law from increasing its tax levy rate without a prior voter
26 referendum.

SB0001 Engrossed- 95 -LRB100 06371 NHT 16410 b
1 The amount paid to a library district under this
2 paragraph (7.7) shall be calculated by multiplying (i) the
3 net increase in the number of persons eligible to obtain a
4 library card in that district who reside in housing units
5 within the redevelopment project area that have received
6 financial assistance through an agreement with the
7 municipality or because the municipality incurs the cost of
8 necessary infrastructure improvements within the
9 boundaries of the housing sites necessary for the
10 completion of that housing as authorized by this Act since
11 the designation of the redevelopment project area by (ii)
12 the per-patron cost of providing library services so long
13 as it does not exceed $120. The per-patron cost shall be
14 the Total Operating Expenditures Per Capita for the library
15 in the previous fiscal year. The municipality may deduct
16 from the amount that it must pay to a library district
17 under this paragraph any amount that it has voluntarily
18 paid to the library district from the tax increment
19 revenue. The amount paid to a library district under this
20 paragraph (7.7) shall be no more than 2% of the amount
21 produced by the assisted housing units and deposited into
22 the Special Tax Allocation Fund.
23 A library district is not eligible for any payment
24 under this paragraph (7.7) unless the library district has
25 experienced an increase in the number of patrons from the
26 municipality that created the tax-increment-financing

SB0001 Engrossed- 96 -LRB100 06371 NHT 16410 b
1 district since the designation of the redevelopment
2 project area.
3 Any library district seeking payment under this
4 paragraph (7.7) shall, after July 1 and before September 30
5 of each year, provide the municipality with convincing
6 evidence to support its claim for reimbursement before the
7 municipality shall be required to approve or make the
8 payment to the library district. If the library district
9 fails to provide the information during this period in any
10 year, it shall forfeit any claim to reimbursement for that
11 year. Library districts may adopt a resolution waiving the
12 right to all or a portion of the reimbursement otherwise
13 required by this paragraph (7.7). By acceptance of such
14 reimbursement, the library district shall forfeit any
15 right to directly or indirectly set aside, modify, or
16 contest in any manner whatsoever the establishment of the
17 redevelopment project area or projects;
18 (8) Relocation costs to the extent that a municipality
19 determines that relocation costs shall be paid or is
20 required to make payment of relocation costs by federal or
21 State law or in order to satisfy subparagraph (7) of
22 subsection (n);
23 (9) Payment in lieu of taxes;
24 (10) Costs of job training, retraining, advanced
25 vocational education or career education, including but
26 not limited to courses in occupational, semi-technical or

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1 technical fields leading directly to employment, incurred
2 by one or more taxing districts, provided that such costs
3 (i) are related to the establishment and maintenance of
4 additional job training, advanced vocational education or
5 career education programs for persons employed or to be
6 employed by employers located in a redevelopment project
7 area; and (ii) when incurred by a taxing district or taxing
8 districts other than the municipality, are set forth in a
9 written agreement by or among the municipality and the
10 taxing district or taxing districts, which agreement
11 describes the program to be undertaken, including but not
12 limited to the number of employees to be trained, a
13 description of the training and services to be provided,
14 the number and type of positions available or to be
15 available, itemized costs of the program and sources of
16 funds to pay for the same, and the term of the agreement.
17 Such costs include, specifically, the payment by community
18 college districts of costs pursuant to Sections 3-37, 3-38,
19 3-40 and 3-40.1 of the Public Community College Act and by
20 school districts of costs pursuant to Sections 10-22.20a
21 and 10-23.3a of the The School Code;
22 (11) Interest cost incurred by a redeveloper related to
23 the construction, renovation or rehabilitation of a
24 redevelopment project provided that:
25 (A) such costs are to be paid directly from the
26 special tax allocation fund established pursuant to

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1 this Act;
2 (B) such payments in any one year may not exceed
3 30% of the annual interest costs incurred by the
4 redeveloper with regard to the redevelopment project
5 during that year;
6 (C) if there are not sufficient funds available in
7 the special tax allocation fund to make the payment
8 pursuant to this paragraph (11) then the amounts so due
9 shall accrue and be payable when sufficient funds are
10 available in the special tax allocation fund;
11 (D) the total of such interest payments paid
12 pursuant to this Act may not exceed 30% of the total
13 (i) cost paid or incurred by the redeveloper for the
14 redevelopment project plus (ii) redevelopment project
15 costs excluding any property assembly costs and any
16 relocation costs incurred by a municipality pursuant
17 to this Act; and
18 (E) the cost limits set forth in subparagraphs (B)
19 and (D) of paragraph (11) shall be modified for the
20 financing of rehabilitated or new housing units for
21 low-income households and very low-income households,
22 as defined in Section 3 of the Illinois Affordable
23 Housing Act. The percentage of 75% shall be substituted
24 for 30% in subparagraphs (B) and (D) of paragraph (11);
25 and .
26 (F) instead Instead of the eligible costs provided

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1 by subparagraphs (B) and (D) of paragraph (11), as
2 modified by this subparagraph, and notwithstanding any
3 other provisions of this Act to the contrary, the
4 municipality may pay from tax increment revenues up to
5 50% of the cost of construction of new housing units to
6 be occupied by low-income households and very
7 low-income households as defined in Section 3 of the
8 Illinois Affordable Housing Act. The cost of
9 construction of those units may be derived from the
10 proceeds of bonds issued by the municipality under this
11 Act or other constitutional or statutory authority or
12 from other sources of municipal revenue that may be
13 reimbursed from tax increment revenues or the proceeds
14 of bonds issued to finance the construction of that
15 housing.
16 The eligible costs provided under this
17 subparagraph (F) of paragraph (11) shall be an eligible
18 cost for the construction, renovation, and
19 rehabilitation of all low and very low-income housing
20 units, as defined in Section 3 of the Illinois
21 Affordable Housing Act, within the redevelopment
22 project area. If the low and very low-income units are
23 part of a residential redevelopment project that
24 includes units not affordable to low and very
25 low-income households, only the low and very
26 low-income units shall be eligible for benefits under

SB0001 Engrossed- 100 -LRB100 06371 NHT 16410 b
1 this subparagraph (F) of paragraph (11). The standards
2 for maintaining the occupancy by low-income households
3 and very low-income households, as defined in Section 3
4 of the Illinois Affordable Housing Act, of those units
5 constructed with eligible costs made available under
6 the provisions of this subparagraph (F) of paragraph
7 (11) shall be established by guidelines adopted by the
8 municipality. The responsibility for annually
9 documenting the initial occupancy of the units by
10 low-income households and very low-income households,
11 as defined in Section 3 of the Illinois Affordable
12 Housing Act, shall be that of the then current owner of
13 the property. For ownership units, the guidelines will
14 provide, at a minimum, for a reasonable recapture of
15 funds, or other appropriate methods designed to
16 preserve the original affordability of the ownership
17 units. For rental units, the guidelines will provide,
18 at a minimum, for the affordability of rent to low and
19 very low-income households. As units become available,
20 they shall be rented to income-eligible tenants. The
21 municipality may modify these guidelines from time to
22 time; the guidelines, however, shall be in effect for
23 as long as tax increment revenue is being used to pay
24 for costs associated with the units or for the
25 retirement of bonds issued to finance the units or for
26 the life of the redevelopment project area, whichever

SB0001 Engrossed- 101 -LRB100 06371 NHT 16410 b
1 is later; .
2 (11.5) If the redevelopment project area is located
3 within a municipality with a population of more than
4 100,000, the cost of day care services for children of
5 employees from low-income families working for businesses
6 located within the redevelopment project area and all or a
7 portion of the cost of operation of day care centers
8 established by redevelopment project area businesses to
9 serve employees from low-income families working in
10 businesses located in the redevelopment project area. For
11 the purposes of this paragraph, "low-income families"
12 means families whose annual income does not exceed 80% of
13 the municipal, county, or regional median income, adjusted
14 for family size, as the annual income and municipal,
15 county, or regional median income are determined from time
16 to time by the United States Department of Housing and
17 Urban Development.
18 (12) Unless explicitly stated herein the cost of
19construction of new privately-owned buildings shall not be an
20eligible redevelopment project cost.
21 (13) After November 1, 1999 (the effective date of Public
22Act 91-478), none of the redevelopment project costs enumerated
23in this subsection shall be eligible redevelopment project
24costs if those costs would provide direct financial support to
25a retail entity initiating operations in the redevelopment
26project area while terminating operations at another Illinois

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1location within 10 miles of the redevelopment project area but
2outside the boundaries of the redevelopment project area
3municipality. For purposes of this paragraph, termination
4means a closing of a retail operation that is directly related
5to the opening of the same operation or like retail entity
6owned or operated by more than 50% of the original ownership in
7a redevelopment project area, but it does not mean closing an
8operation for reasons beyond the control of the retail entity,
9as documented by the retail entity, subject to a reasonable
10finding by the municipality that the current location contained
11inadequate space, had become economically obsolete, or was no
12longer a viable location for the retailer or serviceman.
13 (14) No cost shall be a redevelopment project cost in a
14redevelopment project area if used to demolish, remove, or
15substantially modify a historic resource, after August 26, 2008
16(the effective date of Public Act 95-934), unless no prudent
17and feasible alternative exists. "Historic resource" for the
18purpose of this paragraph item (14) means (i) a place or
19structure that is included or eligible for inclusion on the
20National Register of Historic Places or (ii) a contributing
21structure in a district on the National Register of Historic
22Places. This paragraph item (14) does not apply to a place or
23structure for which demolition, removal, or modification is
24subject to review by the preservation agency of a Certified
25Local Government designated as such by the National Park
26Service of the United States Department of the Interior.

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1 If a special service area has been established pursuant to
2the Special Service Area Tax Act or Special Service Area Tax
3Law, then any tax increment revenues derived from the tax
4imposed pursuant to the Special Service Area Tax Act or Special
5Service Area Tax Law may be used within the redevelopment
6project area for the purposes permitted by that Act or Law as
7well as the purposes permitted by this Act.
8 (q-1) For redevelopment project areas created pursuant to
9subsection (p-1), redevelopment project costs are limited to
10those costs in paragraph (q) that are related to the existing
11or proposed Regional Transportation Authority Suburban Transit
12Access Route (STAR Line) station.
13 (q-2) For a redevelopment project area located within a
14transit facility improvement area established pursuant to
15Section 11-74.4-3.3, redevelopment project costs means those
16costs described in subsection (q) that are related to the
17construction, reconstruction, rehabilitation, remodeling, or
18repair of any existing or proposed transit facility.
19 (r) "State Sales Tax Boundary" means the redevelopment
20project area or the amended redevelopment project area
21boundaries which are determined pursuant to subsection (9) of
22Section 11-74.4-8a of this Act. The Department of Revenue shall
23certify pursuant to subsection (9) of Section 11-74.4-8a the
24appropriate boundaries eligible for the determination of State
25Sales Tax Increment.
26 (s) "State Sales Tax Increment" means an amount equal to

SB0001 Engrossed- 104 -LRB100 06371 NHT 16410 b
1the increase in the aggregate amount of taxes paid by retailers
2and servicemen, other than retailers and servicemen subject to
3the Public Utilities Act, on transactions at places of business
4located within a State Sales Tax Boundary pursuant to the
5Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
6Tax Act, and the Service Occupation Tax Act, except such
7portion of such increase that is paid into the State and Local
8Sales Tax Reform Fund, the Local Government Distributive Fund,
9the Local Government Tax Fund and the County and Mass Transit
10District Fund, for as long as State participation exists, over
11and above the Initial Sales Tax Amounts, Adjusted Initial Sales
12Tax Amounts or the Revised Initial Sales Tax Amounts for such
13taxes as certified by the Department of Revenue and paid under
14those Acts by retailers and servicemen on transactions at
15places of business located within the State Sales Tax Boundary
16during the base year which shall be the calendar year
17immediately prior to the year in which the municipality adopted
18tax increment allocation financing, less 3.0% of such amounts
19generated under the Retailers' Occupation Tax Act, Use Tax Act
20and Service Use Tax Act and the Service Occupation Tax Act,
21which sum shall be appropriated to the Department of Revenue to
22cover its costs of administering and enforcing this Section.
23For purposes of computing the aggregate amount of such taxes
24for base years occurring prior to 1985, the Department of
25Revenue shall compute the Initial Sales Tax Amount for such
26taxes and deduct therefrom an amount equal to 4% of the

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1aggregate amount of taxes per year for each year the base year
2is prior to 1985, but not to exceed a total deduction of 12%.
3The amount so determined shall be known as the "Adjusted
4Initial Sales Tax Amount". For purposes of determining the
5State Sales Tax Increment the Department of Revenue shall for
6each period subtract from the tax amounts received from
7retailers and servicemen on transactions located in the State
8Sales Tax Boundary, the certified Initial Sales Tax Amounts,
9Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
10Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
11the Service Use Tax Act and the Service Occupation Tax Act. For
12the State Fiscal Year 1989 this calculation shall be made by
13utilizing the calendar year 1987 to determine the tax amounts
14received. For the State Fiscal Year 1990, this calculation
15shall be made by utilizing the period from January 1, 1988,
16until September 30, 1988, to determine the tax amounts received
17from retailers and servicemen, which shall have deducted
18therefrom nine-twelfths of the certified Initial Sales Tax
19Amounts, Adjusted Initial Sales Tax Amounts or the Revised
20Initial Sales Tax Amounts as appropriate. For the State Fiscal
21Year 1991, this calculation shall be made by utilizing the
22period from October 1, 1988, until June 30, 1989, to determine
23the tax amounts received from retailers and servicemen, which
24shall have deducted therefrom nine-twelfths of the certified
25Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
26Amounts or the Revised Initial Sales Tax Amounts as

SB0001 Engrossed- 106 -LRB100 06371 NHT 16410 b
1appropriate. For every State Fiscal Year thereafter, the
2applicable period shall be the 12 months beginning July 1 and
3ending on June 30, to determine the tax amounts received which
4shall have deducted therefrom the certified Initial Sales Tax
5Amounts, Adjusted Initial Sales Tax Amounts or the Revised
6Initial Sales Tax Amounts. Municipalities intending to receive
7a distribution of State Sales Tax Increment must report a list
8of retailers to the Department of Revenue by October 31, 1988
9and by July 31, of each year thereafter.
10 (t) "Taxing districts" means counties, townships, cities
11and incorporated towns and villages, school, road, park,
12sanitary, mosquito abatement, forest preserve, public health,
13fire protection, river conservancy, tuberculosis sanitarium
14and any other municipal corporations or districts with the
15power to levy taxes.
16 (u) "Taxing districts' capital costs" means those costs of
17taxing districts for capital improvements that are found by the
18municipal corporate authorities to be necessary and directly
19result from the redevelopment project.
20 (v) As used in subsection (a) of Section 11-74.4-3 of this
21Act, "vacant land" means any parcel or combination of parcels
22of real property without industrial, commercial, and
23residential buildings which has not been used for commercial
24agricultural purposes within 5 years prior to the designation
25of the redevelopment project area, unless the parcel is
26included in an industrial park conservation area or the parcel

SB0001 Engrossed- 107 -LRB100 06371 NHT 16410 b
1has been subdivided; provided that if the parcel was part of a
2larger tract that has been divided into 3 or more smaller
3tracts that were accepted for recording during the period from
41950 to 1990, then the parcel shall be deemed to have been
5subdivided, and all proceedings and actions of the municipality
6taken in that connection with respect to any previously
7approved or designated redevelopment project area or amended
8redevelopment project area are hereby validated and hereby
9declared to be legally sufficient for all purposes of this Act.
10For purposes of this Section and only for land subject to the
11subdivision requirements of the Plat Act, land is subdivided
12when the original plat of the proposed Redevelopment Project
13Area or relevant portion thereof has been properly certified,
14acknowledged, approved, and recorded or filed in accordance
15with the Plat Act and a preliminary plat, if any, for any
16subsequent phases of the proposed Redevelopment Project Area or
17relevant portion thereof has been properly approved and filed
18in accordance with the applicable ordinance of the
19municipality.
20 (w) "Annual Total Increment" means the sum of each
21municipality's annual Net Sales Tax Increment and each
22municipality's annual Net Utility Tax Increment. The ratio of
23the Annual Total Increment of each municipality to the Annual
24Total Increment for all municipalities, as most recently
25calculated by the Department, shall determine the proportional
26shares of the Illinois Tax Increment Fund to be distributed to

SB0001 Engrossed- 108 -LRB100 06371 NHT 16410 b
1each municipality.
2 (x) "LEED certified" means any certification level of
3construction elements by a qualified Leadership in Energy and
4Environmental Design Accredited Professional as determined by
5the U.S. Green Building Council.
6 (y) "Green Globes certified" means any certification level
7of construction elements by a qualified Green Globes
8Professional as determined by the Green Building Initiative.
9(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
10 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
11 Sec. 11-74.4-8. Tax increment allocation financing. A
12municipality may not adopt tax increment financing in a
13redevelopment project area after the effective date of this
14amendatory Act of 1997 that will encompass an area that is
15currently included in an enterprise zone created under the
16Illinois Enterprise Zone Act unless that municipality,
17pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
18amends the enterprise zone designating ordinance to limit the
19eligibility for tax abatements as provided in Section 5.4.1 of
20the Illinois Enterprise Zone Act. A municipality, at the time a
21redevelopment project area is designated, may adopt tax
22increment allocation financing by passing an ordinance
23providing that the ad valorem taxes, if any, arising from the
24levies upon taxable real property in such redevelopment project
25area by taxing districts and tax rates determined in the manner

SB0001 Engrossed- 109 -LRB100 06371 NHT 16410 b
1provided in paragraph (c) of Section 11-74.4-9 each year after
2the effective date of the ordinance until redevelopment project
3costs and all municipal obligations financing redevelopment
4project costs incurred under this Division have been paid shall
5be divided as follows, provided, however, that with respect to
6any redevelopment project area located within a transit
7facility improvement area established pursuant to Section
811-74.4-3.3 in a municipality with a population of 1,000,000 or
9more, ad valorem taxes, if any, arising from the levies upon
10taxable real property in such redevelopment project area shall
11be allocated as specifically provided in this Section:
12 (a) That portion of taxes levied upon each taxable lot,
13 block, tract or parcel of real property which is
14 attributable to the lower of the current equalized assessed
15 value or the initial equalized assessed value of each such
16 taxable lot, block, tract or parcel of real property in the
17 redevelopment project area shall be allocated to and when
18 collected shall be paid by the county collector to the
19 respective affected taxing districts in the manner
20 required by law in the absence of the adoption of tax
21 increment allocation financing.
22 (b) Except from a tax levied by a township to retire
23 bonds issued to satisfy court-ordered damages, that
24 portion, if any, of such taxes which is attributable to the
25 increase in the current equalized assessed valuation of
26 each taxable lot, block, tract or parcel of real property

SB0001 Engrossed- 110 -LRB100 06371 NHT 16410 b
1 in the redevelopment project area over and above the
2 initial equalized assessed value of each property in the
3 project area shall be allocated to and when collected shall
4 be paid to the municipal treasurer who shall deposit said
5 taxes into a special fund called the special tax allocation
6 fund of the municipality for the purpose of paying
7 redevelopment project costs and obligations incurred in
8 the payment thereof. In any county with a population of
9 3,000,000 or more that has adopted a procedure for
10 collecting taxes that provides for one or more of the
11 installments of the taxes to be billed and collected on an
12 estimated basis, the municipal treasurer shall be paid for
13 deposit in the special tax allocation fund of the
14 municipality, from the taxes collected from estimated
15 bills issued for property in the redevelopment project
16 area, the difference between the amount actually collected
17 from each taxable lot, block, tract, or parcel of real
18 property within the redevelopment project area and an
19 amount determined by multiplying the rate at which taxes
20 were last extended against the taxable lot, block, track,
21 or parcel of real property in the manner provided in
22 subsection (c) of Section 11-74.4-9 by the initial
23 equalized assessed value of the property divided by the
24 number of installments in which real estate taxes are
25 billed and collected within the county; provided that the
26 payments on or before December 31, 1999 to a municipal

SB0001 Engrossed- 111 -LRB100 06371 NHT 16410 b
1 treasurer shall be made only if each of the following
2 conditions are met:
3 (1) The total equalized assessed value of the
4 redevelopment project area as last determined was not
5 less than 175% of the total initial equalized assessed
6 value.
7 (2) Not more than 50% of the total equalized assessed
8 value of the redevelopment project area as last
9 determined is attributable to a piece of property
10 assigned a single real estate index number.
11 (3) The municipal clerk has certified to the county
12 clerk that the municipality has issued its obligations
13 to which there has been pledged the incremental
14 property taxes of the redevelopment project area or
15 taxes levied and collected on any or all property in
16 the municipality or the full faith and credit of the
17 municipality to pay or secure payment for all or a
18 portion of the redevelopment project costs. The
19 certification shall be filed annually no later than
20 September 1 for the estimated taxes to be distributed
21 in the following year; however, for the year 1992 the
22 certification shall be made at any time on or before
23 March 31, 1992.
24 (4) The municipality has not requested that the total
25 initial equalized assessed value of real property be
26 adjusted as provided in subsection (b) of Section

SB0001 Engrossed- 112 -LRB100 06371 NHT 16410 b
1 11-74.4-9.
2 The conditions of paragraphs (1) through (4) do not
3 apply after December 31, 1999 to payments to a municipal
4 treasurer made by a county with 3,000,000 or more
5 inhabitants that has adopted an estimated billing
6 procedure for collecting taxes. If a county that has
7 adopted the estimated billing procedure makes an erroneous
8 overpayment of tax revenue to the municipal treasurer, then
9 the county may seek a refund of that overpayment. The
10 county shall send the municipal treasurer a notice of
11 liability for the overpayment on or before the mailing date
12 of the next real estate tax bill within the county. The
13 refund shall be limited to the amount of the overpayment.
14 It is the intent of this Division that after the
15 effective date of this amendatory Act of 1988 a
16 municipality's own ad valorem tax arising from levies on
17 taxable real property be included in the determination of
18 incremental revenue in the manner provided in paragraph (c)
19 of Section 11-74.4-9. If the municipality does not extend
20 such a tax, it shall annually deposit in the municipality's
21 Special Tax Increment Fund an amount equal to 10% of the
22 total contributions to the fund from all other taxing
23 districts in that year. The annual 10% deposit required by
24 this paragraph shall be limited to the actual amount of
25 municipally produced incremental tax revenues available to
26 the municipality from taxpayers located in the

SB0001 Engrossed- 113 -LRB100 06371 NHT 16410 b
1 redevelopment project area in that year if: (a) the plan
2 for the area restricts the use of the property primarily to
3 industrial purposes, (b) the municipality establishing the
4 redevelopment project area is a home-rule community with a
5 1990 population of between 25,000 and 50,000, (c) the
6 municipality is wholly located within a county with a 1990
7 population of over 750,000 and (d) the redevelopment
8 project area was established by the municipality prior to
9 June 1, 1990. This payment shall be in lieu of a
10 contribution of ad valorem taxes on real property. If no
11 such payment is made, any redevelopment project area of the
12 municipality shall be dissolved.
13 If a municipality has adopted tax increment allocation
14 financing by ordinance and the County Clerk thereafter
15 certifies the "total initial equalized assessed value as
16 adjusted" of the taxable real property within such
17 redevelopment project area in the manner provided in
18 paragraph (b) of Section 11-74.4-9, each year after the
19 date of the certification of the total initial equalized
20 assessed value as adjusted until redevelopment project
21 costs and all municipal obligations financing
22 redevelopment project costs have been paid the ad valorem
23 taxes, if any, arising from the levies upon the taxable
24 real property in such redevelopment project area by taxing
25 districts and tax rates determined in the manner provided
26 in paragraph (c) of Section 11-74.4-9 shall be divided as

SB0001 Engrossed- 114 -LRB100 06371 NHT 16410 b
1 follows, provided, however, that with respect to any
2 redevelopment project area located within a transit
3 facility improvement area established pursuant to Section
4 11-74.4-3.3 in a municipality with a population of
5 1,000,000 or more, ad valorem taxes, if any, arising from
6 the levies upon the taxable real property in such
7 redevelopment project area shall be allocated as
8 specifically provided in this Section:
9 (1) That portion of the taxes levied upon each taxable
10 lot, block, tract or parcel of real property which is
11 attributable to the lower of the current equalized
12 assessed value or "current equalized assessed value as
13 adjusted" or the initial equalized assessed value of
14 each such taxable lot, block, tract, or parcel of real
15 property existing at the time tax increment financing
16 was adopted, minus the total current homestead
17 exemptions under Article 15 of the Property Tax Code in
18 the redevelopment project area shall be allocated to
19 and when collected shall be paid by the county
20 collector to the respective affected taxing districts
21 in the manner required by law in the absence of the
22 adoption of tax increment allocation financing.
23 (2) That portion, if any, of such taxes which is
24 attributable to the increase in the current equalized
25 assessed valuation of each taxable lot, block, tract,
26 or parcel of real property in the redevelopment project

SB0001 Engrossed- 115 -LRB100 06371 NHT 16410 b
1 area, over and above the initial equalized assessed
2 value of each property existing at the time tax
3 increment financing was adopted, minus the total
4 current homestead exemptions pertaining to each piece
5 of property provided by Article 15 of the Property Tax
6 Code in the redevelopment project area, shall be
7 allocated to and when collected shall be paid to the
8 municipal Treasurer, who shall deposit said taxes into
9 a special fund called the special tax allocation fund
10 of the municipality for the purpose of paying
11 redevelopment project costs and obligations incurred
12 in the payment thereof.
13 The municipality may pledge in the ordinance the funds
14 in and to be deposited in the special tax allocation fund
15 for the payment of such costs and obligations. No part of
16 the current equalized assessed valuation of each property
17 in the redevelopment project area attributable to any
18 increase above the total initial equalized assessed value,
19 or the total initial equalized assessed value as adjusted,
20 of such properties shall be used in calculating the general
21 State school aid formula, provided for in Section 18-8 of
22 the School Code, or the evidence-based funding formula,
23 provided for in Section 18-8.15 of the School Code, until
24 such time as all redevelopment project costs have been paid
25 as provided for in this Section.
26 Whenever a municipality issues bonds for the purpose of

SB0001 Engrossed- 116 -LRB100 06371 NHT 16410 b
1 financing redevelopment project costs, such municipality
2 may provide by ordinance for the appointment of a trustee,
3 which may be any trust company within the State, and for
4 the establishment of such funds or accounts to be
5 maintained by such trustee as the municipality shall deem
6 necessary to provide for the security and payment of the
7 bonds. If such municipality provides for the appointment of
8 a trustee, such trustee shall be considered the assignee of
9 any payments assigned by the municipality pursuant to such
10 ordinance and this Section. Any amounts paid to such
11 trustee as assignee shall be deposited in the funds or
12 accounts established pursuant to such trust agreement, and
13 shall be held by such trustee in trust for the benefit of
14 the holders of the bonds, and such holders shall have a
15 lien on and a security interest in such funds or accounts
16 so long as the bonds remain outstanding and unpaid. Upon
17 retirement of the bonds, the trustee shall pay over any
18 excess amounts held to the municipality for deposit in the
19 special tax allocation fund.
20 When such redevelopment projects costs, including
21 without limitation all municipal obligations financing
22 redevelopment project costs incurred under this Division,
23 have been paid, all surplus funds then remaining in the
24 special tax allocation fund shall be distributed by being
25 paid by the municipal treasurer to the Department of
26 Revenue, the municipality and the county collector; first

SB0001 Engrossed- 117 -LRB100 06371 NHT 16410 b
1 to the Department of Revenue and the municipality in direct
2 proportion to the tax incremental revenue received from the
3 State and the municipality, but not to exceed the total
4 incremental revenue received from the State or the
5 municipality less any annual surplus distribution of
6 incremental revenue previously made; with any remaining
7 funds to be paid to the County Collector who shall
8 immediately thereafter pay said funds to the taxing
9 districts in the redevelopment project area in the same
10 manner and proportion as the most recent distribution by
11 the county collector to the affected districts of real
12 property taxes from real property in the redevelopment
13 project area.
14 Upon the payment of all redevelopment project costs,
15 the retirement of obligations, the distribution of any
16 excess monies pursuant to this Section, and final closing
17 of the books and records of the redevelopment project area,
18 the municipality shall adopt an ordinance dissolving the
19 special tax allocation fund for the redevelopment project
20 area and terminating the designation of the redevelopment
21 project area as a redevelopment project area. Title to real
22 or personal property and public improvements acquired by or
23 for the municipality as a result of the redevelopment
24 project and plan shall vest in the municipality when
25 acquired and shall continue to be held by the municipality
26 after the redevelopment project area has been terminated.

SB0001 Engrossed- 118 -LRB100 06371 NHT 16410 b
1 Municipalities shall notify affected taxing districts
2 prior to November 1 if the redevelopment project area is to
3 be terminated by December 31 of that same year. If a
4 municipality extends estimated dates of completion of a
5 redevelopment project and retirement of obligations to
6 finance a redevelopment project, as allowed by this
7 amendatory Act of 1993, that extension shall not extend the
8 property tax increment allocation financing authorized by
9 this Section. Thereafter the rates of the taxing districts
10 shall be extended and taxes levied, collected and
11 distributed in the manner applicable in the absence of the
12 adoption of tax increment allocation financing.
13 If a municipality with a population of 1,000,000 or
14 more has adopted by ordinance tax increment allocation
15 financing for a redevelopment project area located in a
16 transit facility improvement area established pursuant to
17 Section 11-74.4-3.3, for each year after the effective date
18 of the ordinance until redevelopment project costs and all
19 municipal obligations financing redevelopment project
20 costs have been paid, the ad valorem taxes, if any, arising
21 from the levies upon the taxable real property in that
22 redevelopment project area by taxing districts and tax
23 rates determined in the manner provided in paragraph (c) of
24 Section 11-74.4-9 shall be divided as follows:
25 (1) That portion of the taxes levied upon each
26 taxable lot, block, tract or parcel of real property

SB0001 Engrossed- 119 -LRB100 06371 NHT 16410 b
1 which is attributable to the lower of (i) the current
2 equalized assessed value or "current equalized
3 assessed value as adjusted" or (ii) the initial
4 equalized assessed value of each such taxable lot,
5 block, tract, or parcel of real property existing at
6 the time tax increment financing was adopted, minus the
7 total current homestead exemptions under Article 15 of
8 the Property Tax Code in the redevelopment project area
9 shall be allocated to and when collected shall be paid
10 by the county collector to the respective affected
11 taxing districts in the manner required by law in the
12 absence of the adoption of tax increment allocation
13 financing.
14 (2) That portion, if any, of such taxes which is
15 attributable to the increase in the current equalized
16 assessed valuation of each taxable lot, block, tract,
17 or parcel of real property in the redevelopment project
18 area, over and above the initial equalized assessed
19 value of each property existing at the time tax
20 increment financing was adopted, minus the total
21 current homestead exemptions pertaining to each piece
22 of property provided by Article 15 of the Property Tax
23 Code in the redevelopment project area, shall be
24 allocated to and when collected shall be paid by the
25 county collector as follows:
26 (A) First, that portion which would be payable

SB0001 Engrossed- 120 -LRB100 06371 NHT 16410 b
1 to a school district whose boundaries are
2 coterminous with such municipality in the absence
3 of the adoption of tax increment allocation
4 financing, shall be paid to such school district in
5 the manner required by law in the absence of the
6 adoption of tax increment allocation financing;
7 then
8 (B) 80% of the remaining portion shall be paid
9 to the municipal Treasurer, who shall deposit said
10 taxes into a special fund called the special tax
11 allocation fund of the municipality for the
12 purpose of paying redevelopment project costs and
13 obligations incurred in the payment thereof; and
14 then
15 (C) 20% of the remaining portion shall be paid
16 to the respective affected taxing districts, other
17 than the school district described in clause (a)
18 above, in the manner required by law in the absence
19 of the adoption of tax increment allocation
20 financing.
21 Nothing in this Section shall be construed as relieving
22property in such redevelopment project areas from being
23assessed as provided in the Property Tax Code or as relieving
24owners of such property from paying a uniform rate of taxes, as
25required by Section 4 of Article IX of the Illinois
26Constitution.

SB0001 Engrossed- 121 -LRB100 06371 NHT 16410 b
1(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
2 (65 ILCS 5/11-74.6-35)
3 Sec. 11-74.6-35. Ordinance for tax increment allocation
4financing.
5 (a) A municipality, at the time a redevelopment project
6area is designated, may adopt tax increment allocation
7financing by passing an ordinance providing that the ad valorem
8taxes, if any, arising from the levies upon taxable real
9property within the redevelopment project area by taxing
10districts and tax rates determined in the manner provided in
11subsection (b) of Section 11-74.6-40 each year after the
12effective date of the ordinance until redevelopment project
13costs and all municipal obligations financing redevelopment
14project costs incurred under this Act have been paid shall be
15divided as follows:
16 (1) That portion of the taxes levied upon each taxable
17 lot, block, tract or parcel of real property that is
18 attributable to the lower of the current equalized assessed
19 value or the initial equalized assessed value or the
20 updated initial equalized assessed value of each taxable
21 lot, block, tract or parcel of real property in the
22 redevelopment project area shall be allocated to and when
23 collected shall be paid by the county collector to the
24 respective affected taxing districts in the manner
25 required by law without regard to the adoption of tax

SB0001 Engrossed- 122 -LRB100 06371 NHT 16410 b
1 increment allocation financing.
2 (2) That portion, if any, of those taxes that is
3 attributable to the increase in the current equalized
4 assessed value of each taxable lot, block, tract or parcel
5 of real property in the redevelopment project area, over
6 and above the initial equalized assessed value or the
7 updated initial equalized assessed value of each property
8 in the project area, shall be allocated to and when
9 collected shall be paid by the county collector to the
10 municipal treasurer who shall deposit that portion of those
11 taxes into a special fund called the special tax allocation
12 fund of the municipality for the purpose of paying
13 redevelopment project costs and obligations incurred in
14 the payment of those costs and obligations. In any county
15 with a population of 3,000,000 or more that has adopted a
16 procedure for collecting taxes that provides for one or
17 more of the installments of the taxes to be billed and
18 collected on an estimated basis, the municipal treasurer
19 shall be paid for deposit in the special tax allocation
20 fund of the municipality, from the taxes collected from
21 estimated bills issued for property in the redevelopment
22 project area, the difference between the amount actually
23 collected from each taxable lot, block, tract, or parcel of
24 real property within the redevelopment project area and an
25 amount determined by multiplying the rate at which taxes
26 were last extended against the taxable lot, block, track,

SB0001 Engrossed- 123 -LRB100 06371 NHT 16410 b
1 or parcel of real property in the manner provided in
2 subsection (b) of Section 11-74.6-40 by the initial
3 equalized assessed value or the updated initial equalized
4 assessed value of the property divided by the number of
5 installments in which real estate taxes are billed and
6 collected within the county, provided that the payments on
7 or before December 31, 1999 to a municipal treasurer shall
8 be made only if each of the following conditions are met:
9 (A) The total equalized assessed value of the
10 redevelopment project area as last determined was not
11 less than 175% of the total initial equalized assessed
12 value.
13 (B) Not more than 50% of the total equalized
14 assessed value of the redevelopment project area as
15 last determined is attributable to a piece of property
16 assigned a single real estate index number.
17 (C) The municipal clerk has certified to the county
18 clerk that the municipality has issued its obligations
19 to which there has been pledged the incremental
20 property taxes of the redevelopment project area or
21 taxes levied and collected on any or all property in
22 the municipality or the full faith and credit of the
23 municipality to pay or secure payment for all or a
24 portion of the redevelopment project costs. The
25 certification shall be filed annually no later than
26 September 1 for the estimated taxes to be distributed

SB0001 Engrossed- 124 -LRB100 06371 NHT 16410 b
1 in the following year.
2 The conditions of paragraphs (A) through (C) do not apply
3after December 31, 1999 to payments to a municipal treasurer
4made by a county with 3,000,000 or more inhabitants that has
5adopted an estimated billing procedure for collecting taxes. If
6a county that has adopted the estimated billing procedure makes
7an erroneous overpayment of tax revenue to the municipal
8treasurer, then the county may seek a refund of that
9overpayment. The county shall send the municipal treasurer a
10notice of liability for the overpayment on or before the
11mailing date of the next real estate tax bill within the
12county. The refund shall be limited to the amount of the
13overpayment.
14 (b) It is the intent of this Act that a municipality's own
15ad valorem tax arising from levies on taxable real property be
16included in the determination of incremental revenue in the
17manner provided in paragraph (b) of Section 11-74.6-40.
18 (c) If a municipality has adopted tax increment allocation
19financing for a redevelopment project area by ordinance and the
20county clerk thereafter certifies the total initial equalized
21assessed value or the total updated initial equalized assessed
22value of the taxable real property within such redevelopment
23project area in the manner provided in paragraph (a) or (b) of
24Section 11-74.6-40, each year after the date of the
25certification of the total initial equalized assessed value or
26the total updated initial equalized assessed value until

SB0001 Engrossed- 125 -LRB100 06371 NHT 16410 b
1redevelopment project costs and all municipal obligations
2financing redevelopment project costs have been paid, the ad
3valorem taxes, if any, arising from the levies upon the taxable
4real property in the redevelopment project area by taxing
5districts and tax rates determined in the manner provided in
6paragraph (b) of Section 11-74.6-40 shall be divided as
7follows:
8 (1) That portion of the taxes levied upon each taxable
9 lot, block, tract or parcel of real property that is
10 attributable to the lower of the current equalized assessed
11 value or the initial equalized assessed value, or the
12 updated initial equalized assessed value of each parcel if
13 the updated initial equalized assessed value of that parcel
14 has been certified in accordance with Section 11-74.6-40,
15 whichever has been most recently certified, of each taxable
16 lot, block, tract, or parcel of real property existing at
17 the time tax increment allocation financing was adopted in
18 the redevelopment project area, shall be allocated to and
19 when collected shall be paid by the county collector to the
20 respective affected taxing districts in the manner
21 required by law without regard to the adoption of tax
22 increment allocation financing.
23 (2) That portion, if any, of those taxes that is
24 attributable to the increase in the current equalized
25 assessed value of each taxable lot, block, tract, or parcel
26 of real property in the redevelopment project area, over

SB0001 Engrossed- 126 -LRB100 06371 NHT 16410 b
1 and above the initial equalized assessed value of each
2 property existing at the time tax increment allocation
3 financing was adopted in the redevelopment project area, or
4 the updated initial equalized assessed value of each parcel
5 if the updated initial equalized assessed value of that
6 parcel has been certified in accordance with Section
7 11-74.6-40, shall be allocated to and when collected shall
8 be paid to the municipal treasurer, who shall deposit those
9 taxes into a special fund called the special tax allocation
10 fund of the municipality for the purpose of paying
11 redevelopment project costs and obligations incurred in
12 the payment thereof.
13 (d) The municipality may pledge in the ordinance the funds
14in and to be deposited in the special tax allocation fund for
15the payment of redevelopment project costs and obligations. No
16part of the current equalized assessed value of each property
17in the redevelopment project area attributable to any increase
18above the total initial equalized assessed value or the total
19initial updated equalized assessed value of the property, shall
20be used in calculating the general General State aid formula
21School Aid Formula, provided for in Section 18-8 of the School
22Code, or the evidence-based funding formula, provided for in
23Section 18-8.15 of the School Code, until all redevelopment
24project costs have been paid as provided for in this Section.
25 Whenever a municipality issues bonds for the purpose of
26financing redevelopment project costs, that municipality may

SB0001 Engrossed- 127 -LRB100 06371 NHT 16410 b
1provide by ordinance for the appointment of a trustee, which
2may be any trust company within the State, and for the
3establishment of any funds or accounts to be maintained by that
4trustee, as the municipality deems necessary to provide for the
5security and payment of the bonds. If the municipality provides
6for the appointment of a trustee, the trustee shall be
7considered the assignee of any payments assigned by the
8municipality under that ordinance and this Section. Any amounts
9paid to the trustee as assignee shall be deposited into the
10funds or accounts established under the trust agreement, and
11shall be held by the trustee in trust for the benefit of the
12holders of the bonds. The holders of those bonds shall have a
13lien on and a security interest in those funds or accounts
14while the bonds remain outstanding and unpaid. Upon retirement
15of the bonds, the trustee shall pay over any excess amounts
16held to the municipality for deposit in the special tax
17allocation fund.
18 When the redevelopment projects costs, including without
19limitation all municipal obligations financing redevelopment
20project costs incurred under this Law, have been paid, all
21surplus funds then remaining in the special tax allocation fund
22shall be distributed by being paid by the municipal treasurer
23to the municipality and the county collector; first to the
24municipality in direct proportion to the tax incremental
25revenue received from the municipality, but not to exceed the
26total incremental revenue received from the municipality,

SB0001 Engrossed- 128 -LRB100 06371 NHT 16410 b
1minus any annual surplus distribution of incremental revenue
2previously made. Any remaining funds shall be paid to the
3county collector who shall immediately distribute that payment
4to the taxing districts in the redevelopment project area in
5the same manner and proportion as the most recent distribution
6by the county collector to the affected districts of real
7property taxes from real property situated in the redevelopment
8project area.
9 Upon the payment of all redevelopment project costs,
10retirement of obligations and the distribution of any excess
11moneys under this Section, the municipality shall adopt an
12ordinance dissolving the special tax allocation fund for the
13redevelopment project area and terminating the designation of
14the redevelopment project area as a redevelopment project area.
15Thereafter the tax levies of taxing districts shall be
16extended, collected and distributed in the same manner
17applicable before the adoption of tax increment allocation
18financing. Municipality shall notify affected taxing districts
19prior to November if the redevelopment project area is to be
20terminated by December 31 of that same year.
21 Nothing in this Section shall be construed as relieving
22property in a redevelopment project area from being assessed as
23provided in the Property Tax Code or as relieving owners of
24that property from paying a uniform rate of taxes, as required
25by Section 4 of Article IX of the Illinois Constitution.
26(Source: P.A. 91-474, eff. 11-1-99.)

SB0001 Engrossed- 129 -LRB100 06371 NHT 16410 b
1 Section 40. The Economic Development Project Area Tax
2Increment Allocation Act of 1995 is amended by changing Section
350 as follows:
4 (65 ILCS 110/50)
5 Sec. 50. Special tax allocation fund.
6 (a) If a county clerk has certified the "total initial
7equalized assessed value" of the taxable real property within
8an economic development project area in the manner provided in
9Section 45, each year after the date of the certification by
10the county clerk of the "total initial equalized assessed
11value", until economic development project costs and all
12municipal obligations financing economic development project
13costs have been paid, the ad valorem taxes, if any, arising
14from the levies upon the taxable real property in the economic
15development project area by taxing districts and tax rates
16determined in the manner provided in subsection (b) of Section
1745 shall be divided as follows:
18 (1) That portion of the taxes levied upon each taxable
19 lot, block, tract, or parcel of real property that is
20 attributable to the lower of the current equalized assessed
21 value or the initial equalized assessed value of each
22 taxable lot, block, tract, or parcel of real property
23 existing at the time tax increment financing was adopted
24 shall be allocated to (and when collected shall be paid by

SB0001 Engrossed- 130 -LRB100 06371 NHT 16410 b
1 the county collector to) the respective affected taxing
2 districts in the manner required by law in the absence of
3 the adoption of tax increment allocation financing.
4 (2) That portion, if any, of the taxes that is
5 attributable to the increase in the current equalized
6 assessed valuation of each taxable lot, block, tract, or
7 parcel of real property in the economic development project
8 area, over and above the initial equalized assessed value
9 of each property existing at the time tax increment
10 financing was adopted, shall be allocated to (and when
11 collected shall be paid to) the municipal treasurer, who
12 shall deposit the taxes into a special fund (called the
13 special tax allocation fund of the municipality) for the
14 purpose of paying economic development project costs and
15 obligations incurred in the payment of those costs.
16 (b) The municipality, by an ordinance adopting tax
17increment allocation financing, may pledge the monies in and to
18be deposited into the special tax allocation fund for the
19payment of obligations issued under this Act and for the
20payment of economic development project costs. No part of the
21current equalized assessed valuation of each property in the
22economic development project area attributable to any increase
23above the total initial equalized assessed value of those
24properties shall be used in calculating the general State
25school aid formula under Section 18-8 of the School Code or the
26evidence-based funding formula under Section 18-8.15 of the

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1School Code, until all economic development projects costs have
2been paid as provided for in this Section.
3 (c) When the economic development projects costs,
4including without limitation all municipal obligations
5financing economic development project costs incurred under
6this Act, have been paid, all surplus monies then remaining in
7the special tax allocation fund shall be distributed by being
8paid by the municipal treasurer to the county collector, who
9shall immediately pay the monies to the taxing districts having
10taxable property in the economic development project area in
11the same manner and proportion as the most recent distribution
12by the county collector to those taxing districts of real
13property taxes from real property in the economic development
14project area.
15 (d) Upon the payment of all economic development project
16costs, retirement of obligations, and distribution of any
17excess monies under this Section and not later than 23 years
18from the date of the adoption of the ordinance establishing the
19economic development project area, the municipality shall
20adopt an ordinance dissolving the special tax allocation fund
21for the economic development project area and terminating the
22designation of the economic development project area as an
23economic development project area. Thereafter, the rates of the
24taxing districts shall be extended and taxes shall be levied,
25collected, and distributed in the manner applicable in the
26absence of the adoption of tax increment allocation financing.

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1 (e) Nothing in this Section shall be construed as relieving
2property in the economic development project areas from being
3assessed as provided in the Property Tax Code or as relieving
4owners or lessees of that property from paying a uniform rate
5of taxes as required by Section 4 of Article IX of the Illinois
6Constitution.
7(Source: P.A. 98-463, eff. 8-16-13.)
8 Section 45. The School Code is amended by changing Sections
91A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20, 1F-20,
101F-62, 1H-20, 1H-70, 2-3.33, 2-3.51.5, 2-3.62, 2-3.66,
112-3.66b, 2-3.80, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a,
1210-19, 10-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20,
1313B-45, 13B-50, 13B-50.10, 13B-50.15, 14-7.02, 14-7.02b,
1414-7.03, 14-13.01, 14C-1, 14C-12, 17-1, 17-1.2, 17-1.5,
1517-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10, 18-9, 18-12, 26-16,
1627-8.1, 27A-9, 27A-11, 29-5, 34-2.3, 34-18, 34-18.30, and
1734-43.1 and by adding Sections 17-3.6 and 18-8.15 as follows:
18 (105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
19 Sec. 1A-8. Powers of the Board in Assisting Districts
20Deemed in Financial Difficulties. To promote the financial
21integrity of school districts, the State Board of Education
22shall be provided the necessary powers to promote sound
23financial management and continue operation of the public
24schools.

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1 (a) The State Superintendent of Education may require a
2school district, including any district subject to Article 34A
3of this Code, to share financial information relevant to a
4proper investigation of the district's financial condition and
5the delivery of appropriate State financial, technical, and
6consulting services to the district if the district (i) has
7been designated, through the State Board of Education's School
8District Financial Profile System, as on financial warning or
9financial watch status, (ii) has failed to file an annual
10financial report, annual budget, deficit reduction plan, or
11other financial information as required by law, (iii) has been
12identified, through the district's annual audit or other
13financial and management information, as in serious financial
14difficulty in the current or next school year, or (iv) is
15determined to be likely to fail to fully meet any regularly
16scheduled, payroll-period obligations when due or any debt
17service payments when due or both. In addition to financial,
18technical, and consulting services provided by the State Board
19of Education, at the request of a school district, the State
20Superintendent may provide for an independent financial
21consultant to assist the district review its financial
22condition and options.
23 (b) The State Board of Education, after proper
24investigation of a district's financial condition, may certify
25that a district, including any district subject to Article 34A,
26is in financial difficulty when any of the following conditions

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1occur:
2 (1) The district has issued school or teacher orders
3 for wages as permitted in Sections 8-16, 32-7.2 and 34-76
4 of this Code.
5 (2) The district has issued tax anticipation warrants
6 or tax anticipation notes in anticipation of a second
7 year's taxes when warrants or notes in anticipation of
8 current year taxes are still outstanding, as authorized by
9 Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
10 issued short-term debt against 2 future revenue sources,
11 such as, but not limited to, tax anticipation warrants and
12 general State aid or evidence-based funding Aid
13 certificates or tax anticipation warrants and revenue
14 anticipation notes.
15 (3) The district has for 2 consecutive years shown an
16 excess of expenditures and other financing uses over
17 revenues and other financing sources and beginning fund
18 balances on its annual financial report for the aggregate
19 totals of the Educational, Operations and Maintenance,
20 Transportation, and Working Cash Funds.
21 (4) The district refuses to provide financial
22 information or cooperate with the State Superintendent in
23 an investigation of the district's financial condition.
24 (5) The district is likely to fail to fully meet any
25 regularly scheduled, payroll-period obligations when due
26 or any debt service payments when due or both.

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1 No school district shall be certified by the State Board of
2Education to be in financial difficulty solely by reason of any
3of the above circumstances arising as a result of (i) the
4failure of the county to make any distribution of property tax
5money due the district at the time such distribution is due or
6(ii) the failure of this State to make timely payments of
7general State aid, evidence-based funding, or any of the
8mandated categoricals; or if the district clearly demonstrates
9to the satisfaction of the State Board of Education at the time
10of its determination that such condition no longer exists. If
11the State Board of Education certifies that a district in a
12city with 500,000 inhabitants or more is in financial
13difficulty, the State Board shall so notify the Governor and
14the Mayor of the city in which the district is located. The
15State Board of Education may require school districts certified
16in financial difficulty, except those districts subject to
17Article 34A, to develop, adopt and submit a financial plan
18within 45 days after certification of financial difficulty. The
19financial plan shall be developed according to guidelines
20presented to the district by the State Board of Education
21within 14 days of certification. Such guidelines shall address
22the specific nature of each district's financial difficulties.
23Any proposed budget of the district shall be consistent with
24the financial plan submitted to and approved by the State Board
25of Education.
26 A district certified to be in financial difficulty, other

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1than a district subject to Article 34A, shall report to the
2State Board of Education at such times and in such manner as
3the State Board may direct, concerning the district's
4compliance with each financial plan. The State Board may review
5the district's operations, obtain budgetary data and financial
6statements, require the district to produce reports, and have
7access to any other information in the possession of the
8district that it deems relevant. The State Board may issue
9recommendations or directives within its powers to the district
10to assist in compliance with the financial plan. The district
11shall produce such budgetary data, financial statements,
12reports and other information and comply with such directives.
13If the State Board of Education determines that a district has
14failed to comply with its financial plan, the State Board of
15Education may rescind approval of the plan and appoint a
16Financial Oversight Panel for the district as provided in
17Section 1B-4. This action shall be taken only after the
18district has been given notice and an opportunity to appear
19before the State Board of Education to discuss its failure to
20comply with its financial plan.
21 No bonds, notes, teachers orders, tax anticipation
22warrants or other evidences of indebtedness shall be issued or
23sold by a school district or be legally binding upon or
24enforceable against a local board of education of a district
25certified to be in financial difficulty unless and until the
26financial plan required under this Section has been approved by

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1the State Board of Education.
2 Any financial profile compiled and distributed by the State
3Board of Education in Fiscal Year 2009 or any fiscal year
4thereafter shall incorporate such adjustments as may be needed
5in the profile scores to reflect the financial effects of the
6inability or refusal of the State of Illinois to make timely
7disbursements of any general State aid, evidence-based
8funding, or mandated categorical aid payments due school
9districts or to fully reimburse school districts for mandated
10categorical programs pursuant to reimbursement formulas
11provided in this School Code.
12(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1397-429, eff. 8-16-11.)
14 (105 ILCS 5/1B-5) (from Ch. 122, par. 1B-5)
15 Sec. 1B-5. When a petition for emergency financial
16assistance for a school district is allowed by the State Board
17under Section 1B-4, the State Superintendent shall within 10
18days thereafter appoint 3 members to serve at the State
19Superintendent's pleasure on a Financial Oversight Panel for
20the district. The State Superintendent shall designate one of
21the members of the Panel to serve as its Chairman. In the event
22of vacancy or resignation the State Superintendent shall
23appoint a successor within 10 days of receiving notice thereof.
24 Members of the Panel shall be selected primarily on the
25basis of their experience and education in financial

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1management, with consideration given to persons knowledgeable
2in education finance. A member of the Panel may not be a board
3member or employee of the district for which the Panel is
4constituted, nor may a member have a direct financial interest
5in that district.
6 Panel members shall serve without compensation, but may be
7reimbursed for travel and other necessary expenses incurred in
8the performance of their official duties by the State Board.
9The amount reimbursed Panel members for their expenses shall be
10charged to the school district as part of any emergency
11financial assistance and incorporated as a part of the terms
12and conditions for repayment of such assistance or shall be
13deducted from the district's general State aid or
14evidence-based funding as provided in Section 1B-8.
15 The first meeting of the Panel shall be held at the call of
16the Chairman. The Panel may elect such other officers as it
17deems appropriate. The Panel shall prescribe the times and
18places for its meetings and the manner in which regular and
19special meetings may be called, and shall comply with the Open
20Meetings Act.
21 Two members of the Panel shall constitute a quorum, and the
22affirmative vote of 2 members shall be necessary for any
23decision or action to be taken by the Panel.
24 The Panel and the State Superintendent shall cooperate with
25each other in the exercise of their respective powers. The
26Panel shall report not later than September 1 annually to the

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1State Board and the State Superintendent with respect to its
2activities and the condition of the school district for the
3previous fiscal year.
4 Any Financial Oversight Panel established under this
5Article shall remain in existence for not less than 3 years nor
6more than 10 years from the date the State Board grants the
7petition under Section 1B-4. If after 3 years the school
8district has repaid all of its obligations resulting from
9emergency State financial assistance provided under this
10Article and has improved its financial situation, the board of
11education may, not more frequently than once in any 12 month
12period, petition the State Board to dissolve the Financial
13Oversight Panel, terminate the oversight responsibility, and
14remove the district's certification under Section 1A-8 as a
15district in financial difficulty. In acting on such a petition
16the State Board shall give additional weight to the
17recommendations of the State Superintendent and the Financial
18Oversight Panel.
19(Source: P.A. 88-618, eff. 9-9-94.)
20 (105 ILCS 5/1B-6) (from Ch. 122, par. 1B-6)
21 Sec. 1B-6. General powers. The purpose of the Financial
22Oversight Panel shall be to exercise financial control over the
23board of education, and, when approved by the State Board and
24the State Superintendent of Education, to furnish financial
25assistance so that the board can provide public education

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1within the board's jurisdiction while permitting the board to
2meet its obligations to its creditors and the holders of its
3notes and bonds. Except as expressly limited by this Article,
4the Panel shall have all powers necessary to meet its
5responsibilities and to carry out its purposes and the purposes
6of this Article, including, but not limited to, the following
7powers:
8 (a) to sue and be sued;
9 (b) to provide for its organization and internal
10management;
11 (c) to appoint a Financial Administrator to serve as the
12chief executive officer of the Panel. The Financial
13Administrator may be an individual, partnership, corporation,
14including an accounting firm, or other entity determined by the
15Panel to be qualified to serve; and to appoint other officers,
16agents, and employees of the Panel, define their duties and
17qualifications and fix their compensation and employee
18benefits;
19 (d) to approve the local board of education appointments to
20the positions of treasurer in a Class I county school unit and
21in each school district which forms a part of a Class II county
22school unit but which no longer is subject to the jurisdiction
23and authority of a township treasurer or trustees of schools of
24a township because the district has withdrawn from the
25jurisdiction and authority of the township treasurer and the
26trustees of schools of the township or because those offices

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1have been abolished as provided in subsection (b) or (c) of
2Section 5-1, and chief school business official, if such
3official is not the superintendent of the district. Either the
4board or the Panel may remove such treasurer or chief school
5business official;
6 (e) to approve any and all bonds, notes, teachers orders,
7tax anticipation warrants, and other evidences of indebtedness
8prior to issuance or sale by the school district; and
9notwithstanding any other provision of The School Code, as now
10or hereafter amended, no bonds, notes, teachers orders, tax
11anticipation warrants or other evidences of indebtedness shall
12be issued or sold by the school district or be legally binding
13upon or enforceable against the local board of education unless
14and until the approval of the Panel has been received;
15 (f) to approve all property tax levies of the school
16district and require adjustments thereto as the Panel deems
17necessary or advisable;
18 (g) to require and approve a school district financial
19plan;
20 (h) to approve and require revisions of the school district
21budget;
22 (i) to approve all contracts and other obligations as the
23Panel deems necessary and appropriate;
24 (j) to authorize emergency State financial assistance,
25including requirements regarding the terms and conditions of
26repayment of such assistance, and to require the board of

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1education to levy a separate local property tax, subject to the
2limitations of Section 1B-8, sufficient to repay such
3assistance consistent with the terms and conditions of
4repayment and the district's approved financial plan and
5budget;
6 (k) to request the regional superintendent to make
7appointments to fill all vacancies on the local school board as
8provided in Section 10-10;
9 (l) to recommend dissolution or reorganization of the
10school district to the General Assembly if in the Panel's
11judgment the circumstances so require;
12 (m) to direct a phased reduction in the oversight
13responsibilities of the Financial Administrator and of the
14Panel as the circumstances permit;
15 (n) to determine the amount of emergency State financial
16assistance to be made available to the school district, and to
17establish an operating budget for the Panel to be supported by
18funds available from such assistance, with the assistance and
19the budget required to be approved by the State Superintendent;
20 (o) to procure insurance against any loss in such amounts
21and from such insurers as it deems necessary;
22 (p) to engage the services of consultants for rendering
23professional and technical assistance and advice on matters
24within the Panel's power;
25 (q) to contract for and to accept any gifts, grants or
26loans of funds or property or financial or other aid in any

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1form from the federal government, State government, unit of
2local government, school district or any agency or
3instrumentality thereof, or from any other private or public
4source, and to comply with the terms and conditions thereof;
5 (r) to pay the expenses of its operations based on the
6Panel's budget as approved by the State Superintendent from
7emergency financial assistance funds available to the district
8or from deductions from the district's general State aid or
9evidence-based funding;
10 (s) to do any and all things necessary or convenient to
11carry out its purposes and exercise the powers given to the
12Panel by this Article; and
13 (t) to recommend the creation of a school finance authority
14pursuant to Article 1F of this Code.
15(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
16 (105 ILCS 5/1B-7) (from Ch. 122, par. 1B-7)
17 Sec. 1B-7. Financial Administrator; Powers and Duties. The
18Financial Administrator appointed by the Financial Oversight
19Panel shall serve as the Panel's chief executive officer. The
20Financial Administrator shall exercise the powers and duties
21required by the Panel, including but not limited to the
22following:
23 (a) to provide guidance and recommendations to the local
24board and officials of the school district in developing the
25district's financial plan and budget prior to board action;

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1 (b) to direct the local board to reorganize its financial
2accounts, budgetary systems, and internal accounting and
3financial controls, in whatever manner the Panel deems
4appropriate to achieve greater financial responsibility and to
5reduce financial inefficiency, and to provide technical
6assistance to aid the district in accomplishing the
7reorganization;
8 (c) to make recommendations to the Financial Oversight
9Panel concerning the school district's financial plan and
10budget, and all other matters within the scope of the Panel's
11authority;
12 (d) to prepare and recommend to the Panel a proposal for
13emergency State financial assistance for the district,
14including recommended terms and conditions of repayment, and an
15operations budget for the Panel to be funded from the emergency
16assistance or from deductions from the district's general State
17aid or evidence-based funding;
18 (e) to require the local board to prepare and submit
19preliminary staffing and budgetary analyses annually prior to
20February 1 in such manner and form as the Financial
21Administrator shall prescribe; and
22 (f) subject to the direction of the Panel, to do all other
23things necessary or convenient to carry out its purposes and
24exercise the powers given to the Panel under this Article.
25(Source: P.A. 88-618, eff. 9-9-94.)

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1 (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
2 Sec. 1B-8. There is created in the State Treasury a special
3fund to be known as the School District Emergency Financial
4Assistance Fund (the "Fund"). The School District Emergency
5Financial Assistance Fund shall consist of appropriations,
6loan repayments, grants from the federal government, and
7donations from any public or private source. Moneys in the Fund
8may be appropriated only to the Illinois Finance Authority and
9the State Board for those purposes authorized under this
10Article and Articles 1F and 1H of this Code. The appropriation
11may be allocated and expended by the State Board for
12contractual services to provide technical assistance or
13consultation to school districts to assess their financial
14condition and to Financial Oversight Panels that petition for
15emergency financial assistance grants. The Illinois Finance
16Authority may provide loans to school districts which are the
17subject of an approved petition for emergency financial
18assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
19Neither the State Board of Education nor the Illinois Finance
20Authority may collect any fees for providing these services.
21 From the amount allocated to each such school district
22under this Article the State Board shall identify a sum
23sufficient to cover all approved costs of the Financial
24Oversight Panel established for the respective school
25district. If the State Board and State Superintendent of
26Education have not approved emergency financial assistance in

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1conjunction with the appointment of a Financial Oversight
2Panel, the Panel's approved costs shall be paid from deductions
3from the district's general State aid or evidence-based
4funding.
5 The Financial Oversight Panel may prepare and file with the
6State Superintendent a proposal for emergency financial
7assistance for the school district and for its operations
8budget. No expenditures from the Fund shall be authorized by
9the State Superintendent until he or she has approved the
10request of the Panel, either as submitted or in such lesser
11amount determined by the State Superintendent.
12 The maximum amount of an emergency financial assistance
13loan which may be allocated to any school district under this
14Article, including moneys necessary for the operations of the
15Panel, shall not exceed $4,000 times the number of pupils
16enrolled in the school district during the school year ending
17June 30 prior to the date of approval by the State Board of the
18petition for emergency financial assistance, as certified to
19the local board and the Panel by the State Superintendent. An
20emergency financial assistance grant shall not exceed $1,000
21times the number of such pupils. A district may receive both a
22loan and a grant.
23 The payment of an emergency State financial assistance
24grant or loan shall be subject to appropriation by the General
25Assembly. Payment of the emergency State financial assistance
26loan is subject to the applicable provisions of the Illinois

SB0001 Engrossed- 147 -LRB100 06371 NHT 16410 b
1Finance Authority Act. Emergency State financial assistance
2allocated and paid to a school district under this Article may
3be applied to any fund or funds from which the local board of
4education of that district is authorized to make expenditures
5by law.
6 Any emergency financial assistance grant proposed by the
7Financial Oversight Panel and approved by the State
8Superintendent may be paid in its entirety during the initial
9year of the Panel's existence or spread in equal or declining
10amounts over a period of years not to exceed the period of the
11Panel's existence. An emergency financial assistance loan
12proposed by the Financial Oversight Panel and approved by the
13Illinois Finance Authority may be paid in its entirety during
14the initial year of the Panel's existence or spread in equal or
15declining amounts over a period of years not to exceed the
16period of the Panel's existence. All loans made by the Illinois
17Finance Authority for a school district shall be required to be
18repaid, with simple interest over the term of the loan at a
19rate equal to 50% of the one-year Constant Maturity Treasury
20(CMT) yield as last published by the Board of Governors of the
21Federal Reserve System before the date on which the district's
22loan is approved by the Illinois Finance Authority, not later
23than the date the Financial Oversight Panel ceases to exist.
24The Panel shall establish and the Illinois Finance Authority
25shall approve the terms and conditions, including the schedule,
26of repayments. The schedule shall provide for repayments

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1commencing July 1 of each year or upon each fiscal year's
2receipt of moneys from a tax levy for emergency financial
3assistance. Repayment shall be incorporated into the annual
4budget of the school district and may be made from any fund or
5funds of the district in which there are moneys available. An
6emergency financial assistance loan to the Panel or district
7shall not be considered part of the calculation of a district's
8debt for purposes of the limitation specified in Section 19-1
9of this Code. Default on repayment is subject to the Illinois
10Grant Funds Recovery Act. When moneys are repaid as provided
11herein they shall not be made available to the local board for
12further use as emergency financial assistance under this
13Article at any time thereafter. All repayments required to be
14made by a school district shall be received by the State Board
15and deposited in the School District Emergency Financial
16Assistance Fund.
17 In establishing the terms and conditions for the repayment
18obligation of the school district the Panel shall annually
19determine whether a separate local property tax levy is
20required. The board of any school district with a tax rate for
21educational purposes for the prior year of less than 120% of
22the maximum rate for educational purposes authorized by Section
2317-2 shall provide for a separate tax levy for emergency
24financial assistance repayment purposes. Such tax levy shall
25not be subject to referendum approval. The amount of the levy
26shall be equal to the amount necessary to meet the annual

SB0001 Engrossed- 149 -LRB100 06371 NHT 16410 b
1repayment obligations of the district as established by the
2Panel, or 20% of the amount levied for educational purposes for
3the prior year, whichever is less. However, no district shall
4be required to levy the tax if the district's operating tax
5rate as determined under Section 18-8, or 18-8.05, or 18-8.15
6exceeds 200% of the district's tax rate for educational
7purposes for the prior year.
8(Source: P.A. 97-429, eff. 8-16-11.)
9 (105 ILCS 5/1C-1)
10 Sec. 1C-1. Purpose. The purpose of this Article is to
11permit greater flexibility and efficiency in the distribution
12and use of certain State funds available to local education
13agencies for the improvement of the quality of educational
14services pursuant to locally established priorities.
15 Through fiscal year 2017, this This Article does not apply
16to school districts having a population in excess of 500,000
17inhabitants.
18(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1989-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
20 (105 ILCS 5/1C-2)
21 Sec. 1C-2. Block grants.
22 (a) For fiscal year 1999, and each fiscal year thereafter,
23the State Board of Education shall award to school districts
24block grants as described in subsection (c). The State Board of

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1Education may adopt rules and regulations necessary to
2implement this Section. In accordance with Section 2-3.32, all
3state block grants are subject to an audit. Therefore, block
4grant receipts and block grant expenditures shall be recorded
5to the appropriate fund code.
6 (b) (Blank).
7 (c) An Early Childhood Education Block Grant shall be
8created by combining the following programs: Preschool
9Education, Parental Training and Prevention Initiative. These
10funds shall be distributed to school districts and other
11entities on a competitive basis, except that the State Board of
12Education shall award to a school district having a population
13exceeding 500,000 inhabitants 37% of the funds in each fiscal
14year. Not less than 14% of the Early Childhood Education Block
15Grant allocation of funds shall be used to fund programs for
16children ages 0-3. Beginning in Fiscal Year 2016, at least 25%
17of any additional Early Childhood Education Block Grant funding
18over and above the previous fiscal year's allocation shall be
19used to fund programs for children ages 0-3. Once the
20percentage of Early Childhood Education Block Grant funding
21allocated to programs for children ages 0-3 reaches 20% of the
22overall Early Childhood Education Block Grant allocation for a
23full fiscal year, thereafter in subsequent fiscal years the
24percentage of Early Childhood Education Block Grant funding
25allocated to programs for children ages 0-3 each fiscal year
26shall remain at least 20% of the overall Early Childhood

SB0001 Engrossed- 151 -LRB100 06371 NHT 16410 b
1Education Block Grant allocation. However, if, in a given
2fiscal year, the amount appropriated for the Early Childhood
3Education Block Grant is insufficient to increase the
4percentage of the grant to fund programs for children ages 0-3
5without reducing the amount of the grant for existing providers
6of preschool education programs, then the percentage of the
7grant to fund programs for children ages 0-3 may be held steady
8instead of increased.
9(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)
10 (105 ILCS 5/1D-1)
11 Sec. 1D-1. Block grant funding.
12 (a) For fiscal year 1996 through fiscal year 2017 and each
13fiscal year thereafter, the State Board of Education shall
14award to a school district having a population exceeding
15500,000 inhabitants a general education block grant and an
16educational services block grant, determined as provided in
17this Section, in lieu of distributing to the district separate
18State funding for the programs described in subsections (b) and
19(c). The provisions of this Section, however, do not apply to
20any federal funds that the district is entitled to receive. In
21accordance with Section 2-3.32, all block grants are subject to
22an audit. Therefore, block grant receipts and block grant
23expenditures shall be recorded to the appropriate fund code for
24the designated block grant.
25 (b) The general education block grant shall include the

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1following programs: REI Initiative, Summer Bridges, Preschool
2At Risk, K-6 Comprehensive Arts, School Improvement Support,
3Urban Education, Scientific Literacy, Substance Abuse
4Prevention, Second Language Planning, Staff Development,
5Outcomes and Assessment, K-6 Reading Improvement, 7-12
6Continued Reading Improvement, Truants' Optional Education,
7Hispanic Programs, Agriculture Education, Parental Education,
8Prevention Initiative, Report Cards, and Criminal Background
9Investigations. Notwithstanding any other provision of law,
10all amounts paid under the general education block grant from
11State appropriations to a school district in a city having a
12population exceeding 500,000 inhabitants shall be appropriated
13and expended by the board of that district for any of the
14programs included in the block grant or any of the board's
15lawful purposes.
16 (c) The educational services block grant shall include the
17following programs: Regular and Vocational Transportation,
18State Lunch and Free Breakfast Program, Special Education
19(Personnel, Transportation, Orphanage, Private Tuition),
20funding for children requiring special education services,
21Summer School, Educational Service Centers, and
22Administrator's Academy. This subsection (c) does not relieve
23the district of its obligation to provide the services required
24under a program that is included within the educational
25services block grant. It is the intention of the General
26Assembly in enacting the provisions of this subsection (c) to

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1relieve the district of the administrative burdens that impede
2efficiency and accompany single-program funding. The General
3Assembly encourages the board to pursue mandate waivers
4pursuant to Section 2-3.25g.
5 The funding program included in the educational services
6block grant for funding for children requiring special
7education services in each fiscal year shall be treated in that
8fiscal year as a payment to the school district in respect of
9services provided or costs incurred in the prior fiscal year,
10calculated in each case as provided in this Section. Nothing in
11this Section shall change the nature of payments for any
12program that, apart from this Section, would be or, prior to
13adoption or amendment of this Section, was on the basis of a
14payment in a fiscal year in respect of services provided or
15costs incurred in the prior fiscal year, calculated in each
16case as provided in this Section.
17 (d) For fiscal year 1996 through fiscal year 2017 and each
18fiscal year thereafter, the amount of the district's block
19grants shall be determined as follows: (i) with respect to each
20program that is included within each block grant, the district
21shall receive an amount equal to the same percentage of the
22current fiscal year appropriation made for that program as the
23percentage of the appropriation received by the district from
24the 1995 fiscal year appropriation made for that program, and
25(ii) the total amount that is due the district under the block
26grant shall be the aggregate of the amounts that the district

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1is entitled to receive for the fiscal year with respect to each
2program that is included within the block grant that the State
3Board of Education shall award the district under this Section
4for that fiscal year. In the case of the Summer Bridges
5program, the amount of the district's block grant shall be
6equal to 44% of the amount of the current fiscal year
7appropriation made for that program.
8 (e) The district is not required to file any application or
9other claim in order to receive the block grants to which it is
10entitled under this Section. The State Board of Education shall
11make payments to the district of amounts due under the
12district's block grants on a schedule determined by the State
13Board of Education.
14 (f) A school district to which this Section applies shall
15report to the State Board of Education on its use of the block
16grants in such form and detail as the State Board of Education
17may specify. In addition, the report must include the following
18description for the district, which must also be reported to
19the General Assembly: block grant allocation and expenditures
20by program; population and service levels by program; and
21administrative expenditures by program. The State Board of
22Education shall ensure that the reporting requirements for the
23district are the same as for all other school districts in this
24State.
25 (g) Through fiscal year 2017, this This paragraph provides
26for the treatment of block grants under Article 1C for purposes

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1of calculating the amount of block grants for a district under
2this Section. Those block grants under Article 1C are, for this
3purpose, treated as included in the amount of appropriation for
4the various programs set forth in paragraph (b) above. The
5appropriation in each current fiscal year for each block grant
6under Article 1C shall be treated for these purposes as
7appropriations for the individual program included in that
8block grant. The proportion of each block grant so allocated to
9each such program included in it shall be the proportion which
10the appropriation for that program was of all appropriations
11for such purposes now in that block grant, in fiscal 1995.
12 Payments to the school district under this Section with
13respect to each program for which payments to school districts
14generally, as of the date of this amendatory Act of the 92nd
15General Assembly, are on a reimbursement basis shall continue
16to be made to the district on a reimbursement basis, pursuant
17to the provisions of this Code governing those programs.
18 (h) Notwithstanding any other provision of law, any school
19district receiving a block grant under this Section may
20classify all or a portion of the funds that it receives in a
21particular fiscal year from any block grant authorized under
22this Code or from general State aid pursuant to Section 18-8.05
23of this Code (other than supplemental general State aid) as
24funds received in connection with any funding program for which
25it is entitled to receive funds from the State in that fiscal
26year (including, without limitation, any funding program

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1referred to in subsection (c) of this Section), regardless of
2the source or timing of the receipt. The district may not
3classify more funds as funds received in connection with the
4funding program than the district is entitled to receive in
5that fiscal year for that program. Any classification by a
6district must be made by a resolution of its board of
7education. The resolution must identify the amount of any block
8grant or general State aid to be classified under this
9subsection (h) and must specify the funding program to which
10the funds are to be treated as received in connection
11therewith. This resolution is controlling as to the
12classification of funds referenced therein. A certified copy of
13the resolution must be sent to the State Superintendent of
14Education. The resolution shall still take effect even though a
15copy of the resolution has not been sent to the State
16Superintendent of Education in a timely manner. No
17classification under this subsection (h) by a district shall
18affect the total amount or timing of money the district is
19entitled to receive under this Code. No classification under
20this subsection (h) by a district shall in any way relieve the
21district from or affect any requirements that otherwise would
22apply with respect to the block grant as provided in this
23Section, including any accounting of funds by source, reporting
24expenditures by original source and purpose, reporting
25requirements, or requirements of provision of services.
26(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;

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197-813, eff. 7-13-12.)
2 (105 ILCS 5/1E-20)
3 (This Section scheduled to be repealed in accordance with
4105 ILCS 5/1E-165)
5 Sec. 1E-20. Members of Authority; meetings.
6 (a) When a petition for a School Finance Authority is
7allowed by the State Board under Section 1E-15 of this Code,
8the State Superintendent shall within 10 days thereafter
9appoint 5 members to serve on a School Finance Authority for
10the district. Of the initial members, 2 shall be appointed to
11serve a term of 2 years and 3 shall be appointed to serve a term
12of 3 years. Thereafter, each member shall serve for a term of 3
13years and until his or her successor has been appointed. The
14State Superintendent shall designate one of the members of the
15Authority to serve as its Chairperson. In the event of vacancy
16or resignation, the State Superintendent shall, within 10 days
17after receiving notice, appoint a successor to serve out that
18member's term. The State Superintendent may remove a member for
19incompetence, malfeasance, neglect of duty, or other just
20cause.
21 Members of the Authority shall be selected primarily on the
22basis of their experience and education in financial
23management, with consideration given to persons knowledgeable
24in education finance. Two members of the Authority shall be
25residents of the school district that the Authority serves. A

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1member of the Authority may not be a member of the district's
2school board or an employee of the district nor may a member
3have a direct financial interest in the district.
4 Authority members shall serve without compensation, but
5may be reimbursed by the State Board for travel and other
6necessary expenses incurred in the performance of their
7official duties. Unless paid from bonds issued under Section
81E-65 of this Code, the amount reimbursed members for their
9expenses shall be charged to the school district as part of any
10emergency financial assistance and incorporated as a part of
11the terms and conditions for repayment of the assistance or
12shall be deducted from the district's general State aid or
13evidence-based funding as provided in Section 1B-8 of this
14Code.
15 The Authority may elect such officers as it deems
16appropriate.
17 (b) The first meeting of the Authority shall be held at the
18call of the Chairperson. The Authority shall prescribe the
19times and places for its meetings and the manner in which
20regular and special meetings may be called and shall comply
21with the Open Meetings Act.
22 Three members of the Authority shall constitute a quorum.
23When a vote is taken upon any measure before the Authority, a
24quorum being present, a majority of the votes of the members
25voting on the measure shall determine the outcome.
26(Source: P.A. 92-547, eff. 6-13-02.)

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1 (105 ILCS 5/1F-20)
2(This Section scheduled to be repealed in accordance with 105
3ILCS 5/1F-165)
4 Sec. 1F-20. Members of Authority; meetings.
5 (a) Upon establishment of a School Finance Authority under
6Section 1F-15 of this Code, the State Superintendent shall
7within 15 days thereafter appoint 5 members to serve on a
8School Finance Authority for the district. Of the initial
9members, 2 shall be appointed to serve a term of 2 years and 3
10shall be appointed to serve a term of 3 years. Thereafter, each
11member shall serve for a term of 3 years and until his or her
12successor has been appointed. The State Superintendent shall
13designate one of the members of the Authority to serve as its
14Chairperson. In the event of vacancy or resignation, the State
15Superintendent shall, within 10 days after receiving notice,
16appoint a successor to serve out that member's term. The State
17Superintendent may remove a member for incompetence,
18malfeasance, neglect of duty, or other just cause.
19 Members of the Authority shall be selected primarily on the
20basis of their experience and education in financial
21management, with consideration given to persons knowledgeable
22in education finance. Two members of the Authority shall be
23residents of the school district that the Authority serves. A
24member of the Authority may not be a member of the district's
25school board or an employee of the district nor may a member

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1have a direct financial interest in the district.
2 Authority members shall be paid a stipend approved by the
3State Superintendent of not more than $100 per meeting and may
4be reimbursed by the State Board for travel and other necessary
5expenses incurred in the performance of their official duties.
6Unless paid from bonds issued under Section 1F-65 of this Code,
7the amount reimbursed members for their expenses shall be
8charged to the school district as part of any emergency
9financial assistance and incorporated as a part of the terms
10and conditions for repayment of the assistance or shall be
11deducted from the district's general State aid or
12evidence-based funding as provided in Section 1B-8 of this
13Code.
14 The Authority may elect such officers as it deems
15appropriate.
16 (b) The first meeting of the Authority shall be held at the
17call of the Chairperson. The Authority shall prescribe the
18times and places for its meetings and the manner in which
19regular and special meetings may be called and shall comply
20with the Open Meetings Act.
21 Three members of the Authority shall constitute a quorum.
22When a vote is taken upon any measure before the Authority, a
23quorum being present, a majority of the votes of the members
24voting on the measure shall determine the outcome.
25(Source: P.A. 94-234, eff. 7-1-06.)

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1 (105 ILCS 5/1F-62)
2(This Section scheduled to be repealed in accordance with 105
3ILCS 5/1F-165)
4 Sec. 1F-62. School District Emergency Financial Assistance
5Fund; grants and loans.
6 (a) Moneys in the School District Emergency Financial
7Assistance Fund established under Section 1B-8 of this Code may
8be allocated and expended by the State Board as grants to
9provide technical and consulting services to school districts
10to assess their financial condition and by the Illinois Finance
11Authority for emergency financial assistance loans to a School
12Finance Authority that petitions for emergency financial
13assistance. An emergency financial assistance loan to a School
14Finance Authority or borrowing from sources other than the
15State shall not be considered as part of the calculation of a
16district's debt for purposes of the limitation specified in
17Section 19-1 of this Code. From the amount allocated to each
18School Finance Authority, the State Board shall identify a sum
19sufficient to cover all approved costs of the School Finance
20Authority. If the State Board and State Superintendent have not
21approved emergency financial assistance in conjunction with
22the appointment of a School Finance Authority, the Authority's
23approved costs shall be paid from deductions from the
24district's general State aid or evidence-based funding.
25 The School Finance Authority may prepare and file with the
26State Superintendent a proposal for emergency financial

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1assistance for the school district and for its operations
2budget. No expenditures shall be authorized by the State
3Superintendent until he or she has approved the proposal of the
4School Finance Authority, either as submitted or in such lesser
5amount determined by the State Superintendent.
6 (b) The amount of an emergency financial assistance loan
7that may be allocated to a School Finance Authority under this
8Article, including moneys necessary for the operations of the
9School Finance Authority, and borrowing from sources other than
10the State shall not exceed, in the aggregate, $4,000 times the
11number of pupils enrolled in the district during the school
12year ending June 30 prior to the date of approval by the State
13Board of the petition for emergency financial assistance, as
14certified to the school board and the School Finance Authority
15by the State Superintendent. However, this limitation does not
16apply to borrowing by the district secured by amounts levied by
17the district prior to establishment of the School Finance
18Authority. An emergency financial assistance grant shall not
19exceed $1,000 times the number of such pupils. A district may
20receive both a loan and a grant.
21 (c) The payment of a State emergency financial assistance
22grant or loan shall be subject to appropriation by the General
23Assembly. State emergency financial assistance allocated and
24paid to a School Finance Authority under this Article may be
25applied to any fund or funds from which the School Finance
26Authority is authorized to make expenditures by law.

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1 (d) Any State emergency financial assistance proposed by
2the School Finance Authority and approved by the State
3Superintendent may be paid in its entirety during the initial
4year of the School Finance Authority's existence or spread in
5equal or declining amounts over a period of years not to exceed
6the period of the School Finance Authority's existence. The
7State Superintendent shall not approve any loan to the School
8Finance Authority unless the School Finance Authority has been
9unable to borrow sufficient funds to operate the district.
10 All loan payments made from the School District Emergency
11Financial Assistance Fund to a School Finance Authority shall
12be required to be repaid not later than the date the School
13Finance Authority ceases to exist, with simple interest over
14the term of the loan at a rate equal to 50% of the one-year
15Constant Maturity Treasury (CMT) yield as last published by the
16Board of Governors of the Federal Reserve System before the
17date on which the School Finance Authority's loan is approved
18by the State Board.
19 The School Finance Authority shall establish and the
20Illinois Finance Authority shall approve the terms and
21conditions of the loan, including the schedule of repayments.
22The schedule shall provide for repayments commencing July 1 of
23each year or upon each fiscal year's receipt of moneys from a
24tax levy for emergency financial assistance. Repayment shall be
25incorporated into the annual budget of the district and may be
26made from any fund or funds of the district in which there are

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1moneys available. Default on repayment is subject to the
2Illinois Grant Funds Recovery Act. When moneys are repaid as
3provided in this Section, they shall not be made available to
4the School Finance Authority for further use as emergency
5financial assistance under this Article at any time thereafter.
6All repayments required to be made by a School Finance
7Authority shall be received by the State Board and deposited in
8the School District Emergency Financial Assistance Fund.
9 In establishing the terms and conditions for the repayment
10obligation of the School Finance Authority, the School Finance
11Authority shall annually determine whether a separate local
12property tax levy is required to meet that obligation. The
13School Finance Authority shall provide for a separate tax levy
14for emergency financial assistance repayment purposes. This
15tax levy shall not be subject to referendum approval. The
16amount of the levy shall not exceed the amount necessary to
17meet the annual emergency financial repayment obligations of
18the district, including principal and interest, as established
19by the School Finance Authority.
20(Source: P.A. 94-234, eff. 7-1-06.)
21 (105 ILCS 5/1H-20)
22 Sec. 1H-20. Members of Panel; meetings.
23 (a) Upon establishment of a Financial Oversight Panel under
24Section 1H-15 of this Code, the State Superintendent shall
25within 15 working days thereafter appoint 5 members to serve on

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1a Financial Oversight Panel for the district. Members appointed
2to the Panel shall serve at the pleasure of the State
3Superintendent. The State Superintendent shall designate one
4of the members of the Panel to serve as its Chairperson. In the
5event of vacancy or resignation, the State Superintendent
6shall, within 10 days after receiving notice, appoint a
7successor to serve out that member's term.
8 (b) Members of the Panel shall be selected primarily on the
9basis of their experience and education in financial
10management, with consideration given to persons knowledgeable
11in education finance. Two members of the Panel shall be
12residents of the school district that the Panel serves. A
13member of the Panel may not be a member of the district's
14school board or an employee of the district nor may a member
15have a direct financial interest in the district.
16 (c) Panel members may be reimbursed by the State Board for
17travel and other necessary expenses incurred in the performance
18of their official duties. The amount reimbursed members for
19their expenses shall be charged to the school district as part
20of any emergency financial assistance and incorporated as a
21part of the terms and conditions for repayment of the
22assistance or shall be deducted from the district's general
23State aid or evidence-based funding as provided in Section
241H-65 of this Code.
25 (d) With the exception of the chairperson, who shall be
26designated as provided in subsection (a) of this Section, the

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1Panel may elect such officers as it deems appropriate.
2 (e) The first meeting of the Panel shall be held at the
3call of the Chairperson. The Panel shall prescribe the times
4and places for its meetings and the manner in which regular and
5special meetings may be called and shall comply with the Open
6Meetings Act. The Panel shall also comply with the Freedom of
7Information Act.
8 (f) Three members of the Panel shall constitute a quorum. A
9majority of members present is required to pass a measure.
10(Source: P.A. 97-429, eff. 8-16-11.)
11 (105 ILCS 5/1H-70)
12 Sec. 1H-70. Tax anticipation warrants, tax anticipation
13notes, revenue anticipation certificates or notes, general
14State aid or evidence-based funding anticipation certificates,
15and lines of credit. With the approval of the State
16Superintendent and provided that the district is unable to
17secure short-term financing after 3 attempts, a Panel shall
18have the same power as a district to do the following:
19 (1) issue tax anticipation warrants under the
20 provisions of Section 17-16 of this Code against taxes
21 levied by either the school board or the Panel pursuant to
22 Section 1H-25 of this Code;
23 (2) issue tax anticipation notes under the provisions
24 of the Tax Anticipation Note Act against taxes levied by
25 either the school board or the Panel pursuant to Section

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1 1H-25 of this Code;
2 (3) issue revenue anticipation certificates or notes
3 under the provisions of the Revenue Anticipation Act;
4 (4) issue general State aid or evidence-based funding
5 anticipation certificates under the provisions of Section
6 18-18 of this Code; and
7 (5) establish and utilize lines of credit under the
8 provisions of Section 17-17 of this Code.
9 Tax anticipation warrants, tax anticipation notes, revenue
10anticipation certificates or notes, general State aid or
11evidence-based funding anticipation certificates, and lines of
12credit are considered borrowing from sources other than the
13State and are subject to Section 1H-65 of this Code.
14(Source: P.A. 97-429, eff. 8-16-11.)
15 (105 ILCS 5/2-3.33) (from Ch. 122, par. 2-3.33)
16 Sec. 2-3.33. Recomputation of claims. To recompute within
173 years from the final date for filing of a claim any claim for
18general State aid reimbursement to any school district and one
19year from the final date for filing of a claim for
20evidence-based funding if the claim has been found to be
21incorrect and to adjust subsequent claims accordingly, and to
22recompute and adjust any such claims within 6 years from the
23final date for filing when there has been an adverse court or
24administrative agency decision on the merits affecting the tax
25revenues of the school district. However, no such adjustment

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1shall be made regarding equalized assessed valuation unless the
2district's equalized assessed valuation is changed by greater
3than $250,000 or 2%. Any adjustments for claims recomputed for
4the 2016-2017 school year and prior school years shall be
5applied to the apportionment of evidence-based funding in
6Section 18-8.15 of this Code beginning in the 2017-2018 school
7year and thereafter. However, the recomputation of a claim for
8evidence-based funding for a school district shall not require
9the recomputation of claims for all districts, and the State
10Board of Education shall only make recomputations of
11evidence-based funding for those districts where an adjustment
12is required.
13 Except in the case of an adverse court or administrative
14agency decision, no recomputation of a State aid claim shall be
15made pursuant to this Section as a result of a reduction in the
16assessed valuation of a school district from the assessed
17valuation of the district reported to the State Board of
18Education by the Department of Revenue under Section 18-8.05 or
1918-8.15 of this Code unless the requirements of Section 16-15
20of the Property Tax Code and Section 2-3.84 of this Code are
21complied with in all respects.
22 This paragraph applies to all requests for recomputation of
23a general State aid or evidence-based funding claim received
24after June 30, 2003. In recomputing a general State aid or
25evidence-based funding claim that was originally calculated
26using an extension limitation equalized assessed valuation

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1under paragraph (3) of subsection (G) of Section 18-8.05 of
2this Code or Section 18-8.15 of this Code, a qualifying
3reduction in equalized assessed valuation shall be deducted
4from the extension limitation equalized assessed valuation
5that was used in calculating the original claim.
6 From the total amount of general State aid or
7evidence-based funding to be provided to districts,
8adjustments as a result of recomputation under this Section
9together with adjustments under Section 2-3.84 must not exceed
10$25 million, in the aggregate for all districts under both
11Sections combined, of the general State aid or evidence-based
12funding appropriation in any fiscal year; if necessary, amounts
13shall be prorated among districts. If it is necessary to
14prorate claims under this paragraph, then that portion of each
15prorated claim that is approved but not paid in the current
16fiscal year may be resubmitted as a valid claim in the
17following fiscal year.
18(Source: P.A. 93-845, eff. 7-30-04.)
19 (105 ILCS 5/2-3.51.5)
20 Sec. 2-3.51.5. School Safety and Educational Improvement
21Block Grant Program. To improve the level of education and
22safety of students from kindergarten through grade 12 in school
23districts and State-recognized, non-public schools. The State
24Board of Education is authorized to fund a School Safety and
25Educational Improvement Block Grant Program.

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1 (1) For school districts, the program shall provide funding
2for school safety, textbooks and software, electronic
3textbooks and the technological equipment necessary to gain
4access to and use electronic textbooks, teacher training and
5curriculum development, school improvements, school report
6cards under Section 10-17a, and criminal history records checks
7under Sections 10-21.9 and 34-18.5. For State-recognized,
8non-public schools, the program shall provide funding for
9secular textbooks and software, criminal history records
10checks, and health and safety mandates to the extent that the
11funds are expended for purely secular purposes. A school
12district or laboratory school as defined in Section 18-8, or
1318-8.05, or 18-8.15 is not required to file an application in
14order to receive the categorical funding to which it is
15entitled under this Section. Funds for the School Safety and
16Educational Improvement Block Grant Program shall be
17distributed to school districts and laboratory schools based on
18the prior year's best 3 months average daily attendance. Funds
19for the School Safety and Educational Improvement Block Grant
20Program shall be distributed to State-recognized, non-public
21schools based on the average daily attendance figure for the
22previous school year provided to the State Board of Education.
23The State Board of Education shall develop an application that
24requires State-recognized, non-public schools to submit
25average daily attendance figures. A State-recognized,
26non-public school must submit the application and average daily

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1attendance figure prior to receiving funds under this Section.
2The State Board of Education shall promulgate rules and
3regulations necessary for the implementation of this program.
4 (2) Distribution of moneys to school districts and
5State-recognized, non-public schools shall be made in 2
6semi-annual installments, one payment on or before October 30,
7and one payment prior to April 30, of each fiscal year.
8 (3) Grants under the School Safety and Educational
9Improvement Block Grant Program shall be awarded provided there
10is an appropriation for the program, and funding levels for
11each district shall be prorated according to the amount of the
12appropriation.
13 (4) The provisions of this Section are in the public
14interest, are for the public benefit, and serve secular public
15purposes.
16(Source: P.A. 98-972, eff. 8-15-14.)
17 (105 ILCS 5/2-3.62) (from Ch. 122, par. 2-3.62)
18 Sec. 2-3.62. Educational service centers.
19 (a) A regional network of educational service centers shall
20be established by the State Board of Education to coordinate
21and combine existing services in a manner which is practical
22and efficient and to provide new services to schools as
23provided in this Section. Services to be made available by such
24centers shall include the planning, implementation and
25evaluation of:

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1 (1) (blank);
2 (2) computer technology education;
3 (3) mathematics, science and reading resources for
4 teachers including continuing education, inservice
5 training and staff development.
6 The centers may provide training, technical assistance,
7coordination and planning in other program areas such as school
8improvement, school accountability, financial planning,
9consultation, and services, career guidance, early childhood
10education, alcohol/drug education and prevention, family life -
11 sex education, electronic transmission of data from school
12districts to the State, alternative education and regional
13special education, and telecommunications systems that provide
14distance learning. Such telecommunications systems may be
15obtained through the Department of Central Management Services
16pursuant to Section 405-270 of the Department of Central
17Management Services Law (20 ILCS 405/405-270). The programs and
18services of educational service centers may be offered to
19private school teachers and private school students within each
20service center area provided public schools have already been
21afforded adequate access to such programs and services.
22 Upon the abolition of the office, removal from office,
23disqualification for office, resignation from office, or
24expiration of the current term of office of the regional
25superintendent of schools, whichever is earlier, the chief
26administrative officer of the centers serving that portion of a

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1Class II county school unit outside of a city of 500,000 or
2more inhabitants shall have and exercise, in and with respect
3to each educational service region having a population of
42,000,000 or more inhabitants and in and with respect to each
5school district located in any such educational service region,
6all of the rights, powers, duties, and responsibilities
7theretofore vested by law in and exercised and performed by the
8regional superintendent of schools for that area under the
9provisions of this Code or any other laws of this State.
10 The State Board of Education shall promulgate rules and
11regulations necessary to implement this Section. The rules
12shall include detailed standards which delineate the scope and
13specific content of programs to be provided by each Educational
14Service Center, as well as the specific planning,
15implementation and evaluation services to be provided by each
16Center relative to its programs. The Board shall also provide
17the standards by which it will evaluate the programs provided
18by each Center.
19 (b) Centers serving Class 1 county school units shall be
20governed by an 11-member board, 3 members of which shall be
21public school teachers nominated by the local bargaining
22representatives to the appropriate regional superintendent for
23appointment and no more than 3 members of which shall be from
24each of the following categories, including but not limited to
25superintendents, regional superintendents, school board
26members and a representative of an institution of higher

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1education. The members of the board shall be appointed by the
2regional superintendents whose school districts are served by
3the educational service center. The composition of the board
4will reflect the revisions of this amendatory Act of 1989 as
5the terms of office of current members expire.
6 (c) The centers shall be of sufficient size and number to
7assure delivery of services to all local school districts in
8the State.
9 (d) From monies appropriated for this program the State
10Board of Education shall provide grants paid from the Personal
11Property Tax Replacement Fund to qualifying Educational
12Service Centers applying for such grants in accordance with
13rules and regulations promulgated by the State Board of
14Education to implement this Section.
15 Notwithstanding anything to the contrary contained in this
16Section, the State Board of Education shall award to a school
17district having a population exceeding 500,000 inhabitants
1814.9% of the funds appropriated by the General Assembly for any
19fiscal year for purposes of payment of claims under this
20Section.
21 (e) The governing authority of each of the 18 regional
22educational service centers shall appoint a family life - sex
23education advisory board consisting of 2 parents, 2 teachers, 2
24school administrators, 2 school board members, 2 health care
25professionals, one library system representative, and the
26director of the regional educational service center who shall

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1serve as chairperson of the advisory board so appointed.
2Members of the family life - sex education advisory boards
3shall serve without compensation. Each of the advisory boards
4appointed pursuant to this subsection shall develop a plan for
5regional teacher-parent family life - sex education training
6sessions and shall file a written report of such plan with the
7governing board of their regional educational service center.
8The directors of each of the regional educational service
9centers shall thereupon meet, review each of the reports
10submitted by the advisory boards and combine those reports into
11a single written report which they shall file with the Citizens
12Council on School Problems prior to the end of the regular
13school term of the 1987-1988 school year.
14 (f) The 14 educational service centers serving Class I
15county school units shall be disbanded on the first Monday of
16August, 1995, and their statutory responsibilities and
17programs shall be assumed by the regional offices of education,
18subject to rules and regulations developed by the State Board
19of Education. The regional superintendents of schools elected
20by the voters residing in all Class I counties shall serve as
21the chief administrators for these programs and services.
22(Source: P.A. 98-24, eff. 6-19-13; 98-647, eff. 6-13-14; 99-30,
23eff. 7-10-15.)
24 (105 ILCS 5/2-3.66) (from Ch. 122, par. 2-3.66)
25 Sec. 2-3.66. Truants' alternative and optional education

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1programs. To establish projects to offer modified
2instructional programs or other services designed to prevent
3students from dropping out of school, including programs
4pursuant to Section 2-3.41, and to serve as a part time or full
5time option in lieu of regular school attendance and to award
6grants to local school districts, educational service regions
7or community college districts from appropriated funds to
8assist districts in establishing such projects. The education
9agency may operate its own program or enter into a contract
10with another not-for-profit entity to implement the program.
11The projects shall allow dropouts, up to and including age 21,
12potential dropouts, including truants, uninvolved, unmotivated
13and disaffected students, as defined by State Board of
14Education rules and regulations, to enroll, as an alternative
15to regular school attendance, in an optional education program
16which may be established by school board policy and is in
17conformance with rules adopted by the State Board of Education.
18Truants' Alternative and Optional Education programs funded
19pursuant to this Section shall be planned by a student, the
20student's parents or legal guardians, unless the student is 18
21years or older, and school officials and shall culminate in an
22individualized optional education plan. Such plan shall focus
23on academic or vocational skills, or both, and may include, but
24not be limited to, evening school, summer school, community
25college courses, adult education, preparation courses for high
26school equivalency testing, vocational training, work

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1experience, programs to enhance self concept and parenting
2courses. School districts which are awarded grants pursuant to
3this Section shall be authorized to provide day care services
4to children of students who are eligible and desire to enroll
5in programs established and funded under this Section, but only
6if and to the extent that such day care is necessary to enable
7those eligible students to attend and participate in the
8programs and courses which are conducted pursuant to this
9Section. School districts and regional offices of education may
10claim general State aid under Section 18-8.05 or evidence-based
11funding under Section 18-8.15 for students enrolled in truants'
12alternative and optional education programs, provided that
13such students are receiving services that are supplemental to a
14program leading to a high school diploma and are otherwise
15eligible to be claimed for general State aid under Section
1618-8.05 or evidence-based funding under Section 18-8.15, as
17applicable.
18 Notwithstanding anything to the contrary contained in this
19Section, the State Board of Education shall award to a school
20district having a population exceeding 500,000 inhabitants
2126.8% of the funds appropriated by the General Assembly for any
22fiscal year for purposes of payment of claims under this
23Section.
24(Source: P.A. 98-718, eff. 1-1-15.)
25 (105 ILCS 5/2-3.66b)

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1 Sec. 2-3.66b. IHOPE Program.
2 (a) There is established the Illinois Hope and Opportunity
3Pathways through Education (IHOPE) Program. The State Board of
4Education shall implement and administer the IHOPE Program. The
5goal of the IHOPE Program is to develop a comprehensive system
6in this State to re-enroll significant numbers of high school
7dropouts in programs that will enable them to earn their high
8school diploma.
9 (b) The IHOPE Program shall award grants, subject to
10appropriation for this purpose, to educational service regions
11and a school district organized under Article 34 of this Code
12from appropriated funds to assist in establishing
13instructional programs and other services designed to
14re-enroll high school dropouts. From any funds appropriated for
15the IHOPE Program, the State Board of Education may use up to
165% for administrative costs, including the performance of a
17program evaluation and the hiring of staff to implement and
18administer the program.
19 The IHOPE Program shall provide incentive grant funds for
20regional offices of education and a school district organized
21under Article 34 of this Code to develop partnerships with
22school districts, public community colleges, and community
23groups to build comprehensive plans to re-enroll high school
24dropouts in their regions or districts.
25 Programs funded through the IHOPE Program shall allow high
26school dropouts, up to and including age 21 notwithstanding

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1Section 26-2 of this Code, to re-enroll in an educational
2program in conformance with rules adopted by the State Board of
3Education. Programs may include without limitation
4comprehensive year-round programming, evening school, summer
5school, community college courses, adult education, vocational
6training, work experience, programs to enhance self-concept,
7and parenting courses. Any student in the IHOPE Program who
8wishes to earn a high school diploma must meet the
9prerequisites to receiving a high school diploma specified in
10Section 27-22 of this Code and any other graduation
11requirements of the student's district of residence. Any
12student who successfully completes the requirements for his or
13her graduation shall receive a diploma identifying the student
14as graduating from his or her district of residence.
15 (c) In order to be eligible for funding under the IHOPE
16Program, an interested regional office of education or a school
17district organized under Article 34 of this Code shall develop
18an IHOPE Plan to be approved by the State Board of Education.
19The State Board of Education shall develop rules for the IHOPE
20Program that shall set forth the requirements for the
21development of the IHOPE Plan. Each Plan shall involve school
22districts, public community colleges, and key community
23programs that work with high school dropouts located in an
24educational service region or the City of Chicago before the
25Plan is sent to the State Board for approval. No funds may be
26distributed to a regional office of education or a school

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1district organized under Article 34 of this Code until the
2State Board has approved the Plan.
3 (d) A regional office of education or a school district
4organized under Article 34 of this Code may operate its own
5program funded by the IHOPE Program or enter into a contract
6with other not-for-profit entities, including school
7districts, public community colleges, and not-for-profit
8community-based organizations, to operate a program.
9 A regional office of education or a school district
10organized under Article 34 of this Code that receives an IHOPE
11grant from the State Board of Education may provide funds under
12a sub-grant, as specified in the IHOPE Plan, to other
13not-for-profit entities to provide services according to the
14IHOPE Plan that was developed. These other entities may include
15school districts, public community colleges, or not-for-profit
16community-based organizations or a cooperative partnership
17among these entities.
18 (e) In order to distribute funding based upon the need to
19ensure delivery of programs that will have the greatest impact,
20IHOPE Program funding must be distributed based upon the
21proportion of dropouts in the educational service region or
22school district, in the case of a school district organized
23under Article 34 of this Code, to the total number of dropouts
24in this State. This formula shall employ the dropout data
25provided by school districts to the State Board of Education.
26 A regional office of education or a school district

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1organized under Article 34 of this Code may claim State aid
2under Section 18-8.05 or 18-8.15 of this Code for students
3enrolled in a program funded by the IHOPE Program, provided
4that the State Board of Education has approved the IHOPE Plan
5and that these students are receiving services that are meeting
6the requirements of Section 27-22 of this Code for receipt of a
7high school diploma and are otherwise eligible to be claimed
8for general State aid under Section 18-8.05 of this Code or
9evidence-based funding under Section 18-8.15 of this Code,
10including provisions related to the minimum number of days of
11pupil attendance pursuant to Section 10-19 of this Code and the
12minimum number of daily hours of school work and any exceptions
13thereto as defined by the State Board of Education in rules.
14 (f) IHOPE categories of programming may include the
15following:
16 (1) Full-time programs that are comprehensive,
17 year-round programs.
18 (2) Part-time programs combining work and study
19 scheduled at various times that are flexible to the needs
20 of students.
21 (3) Online programs and courses in which students take
22 courses and complete on-site, supervised tests that
23 measure the student's mastery of a specific course needed
24 for graduation. Students may take courses online and earn
25 credit or students may prepare to take supervised tests for
26 specific courses for credit leading to receipt of a high

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1 school diploma.
2 (4) Dual enrollment in which students attend high
3 school classes in combination with community college
4 classes or students attend community college classes while
5 simultaneously earning high school credit and eventually a
6 high school diploma.
7 (g) In order to have successful comprehensive programs
8re-enrolling and graduating low-skilled high school dropouts,
9programs funded through the IHOPE Program shall include all of
10the following components:
11 (1) Small programs (70 to 100 students) at a separate
12 school site with a distinct identity. Programs may be
13 larger with specific need and justification, keeping in
14 mind that it is crucial to keep programs small to be
15 effective.
16 (2) Specific performance-based goals and outcomes and
17 measures of enrollment, attendance, skills, credits,
18 graduation, and the transition to college, training, and
19 employment.
20 (3) Strong, experienced leadership and teaching staff
21 who are provided with ongoing professional development.
22 (4) Voluntary enrollment.
23 (5) High standards for student learning, integrating
24 work experience, and education, including during the
25 school year and after school, and summer school programs
26 that link internships, work, and learning.

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1 (6) Comprehensive programs providing extensive support
2 services.
3 (7) Small teams of students supported by full-time paid
4 mentors who work to retain and help those students
5 graduate.
6 (8) A comprehensive technology learning center with
7 Internet access and broad-based curriculum focusing on
8 academic and career subject areas.
9 (9) Learning opportunities that incorporate action
10 into study.
11 (h) Programs funded through the IHOPE Program must report
12data to the State Board of Education as requested. This
13information shall include, but is not limited to, student
14enrollment figures, attendance information, course completion
15data, graduation information, and post-graduation information,
16as available.
17 (i) Rules must be developed by the State Board of Education
18to set forth the fund distribution process to regional offices
19of education and a school district organized under Article 34
20of this Code, the planning and the conditions upon which an
21IHOPE Plan would be approved by State Board, and other rules to
22develop the IHOPE Program.
23(Source: P.A. 96-106, eff. 7-30-09.)
24 (105 ILCS 5/2-3.80) (from Ch. 122, par. 2-3.80)
25 Sec. 2-3.80. (a) The General Assembly recognizes that

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1agriculture is the most basic and singularly important industry
2in the State, that agriculture is of central importance to the
3welfare and economic stability of the State, and that the
4maintenance of this vital industry requires a continued source
5of trained and qualified individuals for employment in
6agriculture and agribusiness. The General Assembly hereby
7declares that it is in the best interests of the people of the
8State of Illinois that a comprehensive education program in
9agriculture be created and maintained by the State's public
10school system in order to ensure an adequate supply of trained
11and skilled individuals and to ensure appropriate
12representation of racial and ethnic groups in all phases of the
13industry. It is the intent of the General Assembly that a State
14program for agricultural education shall be a part of the
15curriculum of the public school system K through adult, and
16made readily available to all school districts which may, at
17their option, include programs in education in agriculture as a
18part of the curriculum of that district.
19 (b) The State Board of Education shall adopt such rules and
20regulations as are necessary to implement the provisions of
21this Section. The rules and regulations shall not create any
22new State mandates on school districts as a condition of
23receiving federal, State, and local funds by those entities. It
24is in the intent of the General Assembly that, although this
25Section does not create any new mandates, school districts are
26strongly advised to follow the guidelines set forth in this

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1Section.
2 (c) The State Superintendent of Education shall assume
3responsibility for the administration of the State program
4adopted under this Section throughout the public school system
5as well as the articulation of the State program to the
6requirements and mandates of federally assisted education.
7There is currently within the State Board of Education an
8agricultural education unit to assist school districts in the
9establishment and maintenance of educational programs pursuant
10to the provisions of this Section. The staffing of the unit
11shall at all times be comprised of an appropriate number of
12full-time employees who shall serve as program consultants in
13agricultural education and shall be available to provide
14assistance to school districts. At least one consultant shall
15be responsible for the coordination of the State program, as
16Head Consultant. At least one consultant shall be responsible
17for the coordination of the activities of student and
18agricultural organizations and associations.
19 (d) A committee of 13 agriculturalists representative of
20the various and diverse areas of the agricultural industry in
21Illinois shall be established to at least develop a curriculum
22and overview the implementation of the Build Illinois through
23Quality Agricultural Education plans of the Illinois
24Leadership Council for Agricultural Education and to advise the
25State Board of Education on vocational agricultural education.
26The Committee shall be composed of the following: (6)

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1agriculturalists representing the Illinois Leadership Council
2for Agricultural Education; (2) Secondary Agriculture
3Teachers; (1) "Ag In The Classroom" Teacher; (1) Community
4College Agriculture Teacher; (1) Adult Agriculture Education
5Teacher; (1) University Agriculture Teacher Educator; and (1)
6FFA Representative. All members of the Committee shall be
7appointed by the Governor by and with the advice and consent of
8the Senate. The terms of all members so appointed shall be for
93 years, except that of the members initially appointed, 5
10shall be appointed to serve for terms of 1 year, 4 shall be
11appointed to serve for terms of 2 years and 4 shall be
12appointed to serve for terms of 3 years. All members of the
13Committee shall serve until their successors are appointed and
14qualified. Vacancies in terms shall be filled by appointment of
15the Governor with the advice and consent of the Senate for the
16extent of the unexpired term. The State Board of Education
17shall implement a Build Illinois through Quality Agricultural
18Education plan following receipt of these recommendations
19which shall be made available on or before March 31, 1987.
20Recommendations shall include, but not be limited to, the
21development of a curriculum and a strategy for the purpose of
22establishing a source of trained and qualified individuals in
23agriculture, a strategy for articulating the State program in
24agricultural education throughout the public school system,
25and a consumer education outreach strategy regarding the
26importance of agriculture in Illinois. The committee of

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1agriculturalists shall serve without compensation.
2 (e) A school district that offers a secondary agricultural
3education program that is approved for State and federal
4funding must ensure that, at a minimum, all of the following
5are available to its secondary agricultural education
6students:
7 (1) An instructional sequence of courses approved by
8 the State Board of Education.
9 (2) A State and nationally affiliated FFA (Future
10 Farmers of America) chapter that is integral to instruction
11 and is not treated solely as an extracurricular activity.
12 (3) A mechanism for ensuring the involvement of all
13 secondary agricultural education students in formal,
14 supervised, agricultural-experience activities and
15 programs.
16 Notwithstanding anything to the contrary contained in this
17Section, the State Board of Education shall award to a school
18district having a population exceeding 500,000 inhabitants
191.1% of the funds appropriated by the General Assembly for any
20fiscal year for purposes of payment of claims under this
21Section.
22 (f) Nothing in this Section may prevent those secondary
23agricultural education programs that are in operation before
24the effective date of this amendatory Act of the 94th General
25Assembly and that do not have an active State and nationally
26affiliated FFA chapter from continuing to operate or from

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1continuing to receive funding from the State Board of
2Education.
3(Source: P.A. 94-855, eff. 1-1-07.)
4 (105 ILCS 5/2-3.84) (from Ch. 122, par. 2-3.84)
5 Sec. 2-3.84. In calculating the amount of State aid to be
6apportioned to the various school districts in this State, the
7State Board of Education shall incorporate and deduct the total
8aggregate adjustments to assessments made by the State Property
9Tax Appeal Board or Cook County Board of Appeals, as reported
10pursuant to Section 16-15 of the Property Tax Code or Section
11129.1 of the Revenue Act of 1939 by the Department of Revenue,
12from the equalized assessed valuation that is otherwise to be
13utilized in the initial calculation.
14 From the total amount of general State aid or
15evidence-based funding to be provided to districts,
16adjustments under this Section together with adjustments as a
17result of recomputation under Section 2-3.33 must not exceed
18$25 million, in the aggregate for all districts under both
19Sections combined, of the general State aid or evidence-based
20funding appropriation in any fiscal year; if necessary, amounts
21shall be prorated among districts. If it is necessary to
22prorate claims under this paragraph, then that portion of each
23prorated claim that is approved but not paid in the current
24fiscal year may be resubmitted as a valid claim in the
25following fiscal year.

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1(Source: P.A. 93-845, eff. 7-30-04.)
2 (105 ILCS 5/2-3.109a)
3 Sec. 2-3.109a. Laboratory schools grant eligibility. A
4laboratory school as defined in Section 18-8 or 18-8.15 may
5apply for and be eligible to receive, subject to the same
6restrictions applicable to school districts, any grant
7administered by the State Board of Education that is available
8for school districts.
9(Source: P.A. 90-566, eff. 1-2-98.)
10 (105 ILCS 5/3-14.21) (from Ch. 122, par. 3-14.21)
11 Sec. 3-14.21. Inspection of schools.
12 (a) The regional superintendent shall inspect and survey
13all public schools under his or her supervision and notify the
14board of education, or the trustees of schools in a district
15with trustees, in writing before July 30, whether or not the
16several schools in their district have been kept as required by
17law, using forms provided by the State Board of Education which
18are based on the Health/Life Safety Code for Public Schools
19adopted under Section 2-3.12. The regional superintendent
20shall report his or her findings to the State Board of
21Education on forms provided by the State Board of Education.
22 (b) If the regional superintendent determines that a school
23board has failed in a timely manner to correct urgent items
24identified in a previous life-safety report completed under

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1Section 2-3.12 or as otherwise previously ordered by the
2regional superintendent, the regional superintendent shall
3order the school board to adopt and submit to the regional
4superintendent a plan for the immediate correction of the
5building violations. This plan shall be adopted following a
6public hearing that is conducted by the school board on the
7violations and the plan and that is preceded by at least 7
8days' prior notice of the hearing published in a newspaper of
9general circulation within the school district. If the regional
10superintendent determines in the next annual inspection that
11the plan has not been completed and that the violations have
12not been corrected, the regional superintendent shall submit a
13report to the State Board of Education with a recommendation
14that the State Board withhold from payments of general State
15aid or evidence-based funding due to the district an amount
16necessary to correct the outstanding violations. The State
17Board, upon notice to the school board and to the regional
18superintendent, shall consider the report at a meeting of the
19State Board, and may order that a sufficient amount of general
20State aid or evidence-based funding be withheld from payments
21due to the district to correct the violations. This amount
22shall be paid to the regional superintendent who shall contract
23on behalf of the school board for the correction of the
24outstanding violations.
25 (c) The Office of the State Fire Marshal or a qualified
26fire official, as defined in Section 2-3.12 of this Code, to

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1whom the State Fire Marshal has delegated his or her authority
2shall conduct an annual fire safety inspection of each school
3building in this State. The State Fire Marshal or the fire
4official shall coordinate its inspections with the regional
5superintendent. The inspection shall be based on the fire
6safety code authorized in Section 2-3.12 of this Code. Any
7violations shall be reported in writing to the regional
8superintendent and shall reference the specific code sections
9where a discrepancy has been identified within 15 days after
10the inspection has been conducted. The regional superintendent
11shall address those violations that are not corrected in a
12timely manner pursuant to subsection (b) of this Section. The
13inspection must be at no cost to the school district.
14 (d) If a municipality or, in the case of an unincorporated
15area, a county or, if applicable, a fire protection district
16wishes to perform new construction inspections under the
17jurisdiction of a regional superintendent, then the entity must
18register this wish with the regional superintendent. These
19inspections must be based on the building code authorized in
20Section 2-3.12 of this Code. The inspections must be at no cost
21to the school district.
22(Source: P.A. 96-734, eff. 8-25-09.)
23 (105 ILCS 5/7-14A) (from Ch. 122, par. 7-14A)
24 Sec. 7-14A. Annexation compensation. There shall be no
25accounting made after a mere change in boundaries when no new

SB0001 Engrossed- 192 -LRB100 06371 NHT 16410 b
1district is created, except that those districts whose
2enrollment increases by 90% or more as a result of annexing
3territory detached from another district pursuant to this
4Article are eligible for supplementary State aid payments in
5accordance with Section 11E-135 of this Code. Eligible annexing
6districts shall apply to the State Board of Education for
7supplementary State aid payments by submitting enrollment
8figures for the year immediately preceding and the year
9immediately following the effective date of the boundary change
10for both the district gaining territory and the district losing
11territory. Copies of any intergovernmental agreements between
12the district gaining territory and the district losing
13territory detailing any transfer of fund balances and staff
14must also be submitted. In all instances of changes in
15boundaries, the district losing territory shall not count the
16average daily attendance of pupils living in the territory
17during the year preceding the effective date of the boundary
18change in its claim for reimbursement under Section 18-8.05 or
1918-8.15 of this Code for the school year following the
20effective date of the change in boundaries and the district
21receiving the territory shall count the average daily
22attendance of pupils living in the territory during the year
23preceding the effective date of the boundary change in its
24claim for reimbursement under Section 18-8.05 or 18-8.15 of
25this Code for the school year following the effective date of
26the change in boundaries. The changes to this Section made by

SB0001 Engrossed- 193 -LRB100 06371 NHT 16410 b
1this amendatory Act of the 95th General Assembly are intended
2to be retroactive and applicable to any annexation taking
3effect on or after July 1, 2004.
4(Source: P.A. 99-657, eff. 7-28-16.)
5 (105 ILCS 5/10-17a) (from Ch. 122, par. 10-17a)
6 Sec. 10-17a. State, school district, and school report
7cards.
8 (1) By October 31, 2013 and October 31 of each subsequent
9school year, the State Board of Education, through the State
10Superintendent of Education, shall prepare a State report card,
11school district report cards, and school report cards, and
12shall by the most economic means provide to each school
13district in this State, including special charter districts and
14districts subject to the provisions of Article 34, the report
15cards for the school district and each of its schools.
16 (2) In addition to any information required by federal law,
17the State Superintendent shall determine the indicators and
18presentation of the school report card, which must include, at
19a minimum, the most current data possessed by the State Board
20of Education related to the following:
21 (A) school characteristics and student demographics,
22 including average class size, average teaching experience,
23 student racial/ethnic breakdown, and the percentage of
24 students classified as low-income; the percentage of
25 students classified as English learners; the percentage of

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1 students who have individualized education plans or 504
2 plans that provide for special education services; the
3 percentage of students who annually transferred in or out
4 of the school district; the per-pupil operating
5 expenditure of the school district; and the per-pupil State
6 average operating expenditure for the district type
7 (elementary, high school, or unit);
8 (B) curriculum information, including, where
9 applicable, Advanced Placement, International
10 Baccalaureate or equivalent courses, dual enrollment
11 courses, foreign language classes, school personnel
12 resources (including Career Technical Education teachers),
13 before and after school programs, extracurricular
14 activities, subjects in which elective classes are
15 offered, health and wellness initiatives (including the
16 average number of days of Physical Education per week per
17 student), approved programs of study, awards received,
18 community partnerships, and special programs such as
19 programming for the gifted and talented, students with
20 disabilities, and work-study students;
21 (C) student outcomes, including, where applicable, the
22 percentage of students deemed proficient on assessments of
23 State standards, the percentage of students in the eighth
24 grade who pass Algebra, the percentage of students enrolled
25 in post-secondary institutions (including colleges,
26 universities, community colleges, trade/vocational

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1 schools, and training programs leading to career
2 certification within 2 semesters of high school
3 graduation), the percentage of students graduating from
4 high school who are college and career ready, and the
5 percentage of graduates enrolled in community colleges,
6 colleges, and universities who are in one or more courses
7 that the community college, college, or university
8 identifies as a developmental course;
9 (D) student progress, including, where applicable, the
10 percentage of students in the ninth grade who have earned 5
11 credits or more without failing more than one core class, a
12 measure of students entering kindergarten ready to learn, a
13 measure of growth, and the percentage of students who enter
14 high school on track for college and career readiness;
15 (E) the school environment, including, where
16 applicable, the percentage of students with less than 10
17 absences in a school year, the percentage of teachers with
18 less than 10 absences in a school year for reasons other
19 than professional development, leaves taken pursuant to
20 the federal Family Medical Leave Act of 1993, long-term
21 disability, or parental leaves, the 3-year average of the
22 percentage of teachers returning to the school from the
23 previous year, the number of different principals at the
24 school in the last 6 years, 2 or more indicators from any
25 school climate survey selected or approved by the State and
26 administered pursuant to Section 2-3.153 of this Code, with

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1 the same or similar indicators included on school report
2 cards for all surveys selected or approved by the State
3 pursuant to Section 2-3.153 of this Code, and the combined
4 percentage of teachers rated as proficient or excellent in
5 their most recent evaluation; and
6 (F) a school district's and its individual schools'
7 balanced accountability measure, in accordance with
8 Section 2-3.25a of this Code; .
9 (G) a school district's Final Percent of Adequacy, as
10 defined in paragraph (4) of subsection (f) of Section
11 18-8.15 of this Code;
12 (H) a school district's Local Capacity Target, as
13 defined in paragraph (2) of subsection (c) of Section
14 18-8.15 of this Code, displayed as a percentage amount; and
15 (I) a school district's Real Receipts, as defined in
16 paragraph (1) of subsection (d) of Section 18-8.15 of this
17 Code, divided by a school district's Adequacy Target, as
18 defined in paragraph (1) of subsection (b) of Section
19 18-8.15 of this Code, displayed as a percentage amount.
20 The school report card shall also provide information that
21allows for comparing the current outcome, progress, and
22environment data to the State average, to the school data from
23the past 5 years, and to the outcomes, progress, and
24environment of similar schools based on the type of school and
25enrollment of low-income students, special education students,
26and English learners.

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1 (3) At the discretion of the State Superintendent, the
2school district report card shall include a subset of the
3information identified in paragraphs (A) through (E) of
4subsection (2) of this Section, as well as information relating
5to the operating expense per pupil and other finances of the
6school district, and the State report card shall include a
7subset of the information identified in paragraphs (A) through
8(E) of subsection (2) of this Section.
9 (4) Notwithstanding anything to the contrary in this
10Section, in consultation with key education stakeholders, the
11State Superintendent shall at any time have the discretion to
12amend or update any and all metrics on the school, district, or
13State report card.
14 (5) Annually, no more than 30 calendar days after receipt
15of the school district and school report cards from the State
16Superintendent of Education, each school district, including
17special charter districts and districts subject to the
18provisions of Article 34, shall present such report cards at a
19regular school board meeting subject to applicable notice
20requirements, post the report cards on the school district's
21Internet web site, if the district maintains an Internet web
22site, make the report cards available to a newspaper of general
23circulation serving the district, and, upon request, send the
24report cards home to a parent (unless the district does not
25maintain an Internet web site, in which case the report card
26shall be sent home to parents without request). If the district

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1posts the report card on its Internet web site, the district
2shall send a written notice home to parents stating (i) that
3the report card is available on the web site, (ii) the address
4of the web site, (iii) that a printed copy of the report card
5will be sent to parents upon request, and (iv) the telephone
6number that parents may call to request a printed copy of the
7report card.
8 (6) Nothing contained in this amendatory Act of the 98th
9General Assembly repeals, supersedes, invalidates, or
10nullifies final decisions in lawsuits pending on the effective
11date of this amendatory Act of the 98th General Assembly in
12Illinois courts involving the interpretation of Public Act
1397-8.
14(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
15eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
16 (105 ILCS 5/10-19) (from Ch. 122, par. 10-19)
17 Sec. 10-19. Length of school term - experimental programs.
18Each school board shall annually prepare a calendar for the
19school term, specifying the opening and closing dates and
20providing a minimum term of at least 185 days to insure 176
21days of actual pupil attendance, computable under Section
2218-8.05 or 18-8.15, except that for the 1980-1981 school year
23only 175 days of actual pupil attendance shall be required
24because of the closing of schools pursuant to Section 24-2 on
25January 29, 1981 upon the appointment by the President of that

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1day as a day of thanksgiving for the freedom of the Americans
2who had been held hostage in Iran. Any days allowed by law for
3teachers' institutes but not used as such or used as parental
4institutes as provided in Section 10-22.18d shall increase the
5minimum term by the school days not so used. Except as provided
6in Section 10-19.1, the board may not extend the school term
7beyond such closing date unless that extension of term is
8necessary to provide the minimum number of computable days. In
9case of such necessary extension school employees shall be paid
10for such additional time on the basis of their regular
11contracts. A school board may specify a closing date earlier
12than that set on the annual calendar when the schools of the
13district have provided the minimum number of computable days
14under this Section. Nothing in this Section prevents the board
15from employing superintendents of schools, principals and
16other nonteaching personnel for a period of 12 months, or in
17the case of superintendents for a period in accordance with
18Section 10-23.8, or prevents the board from employing other
19personnel before or after the regular school term with payment
20of salary proportionate to that received for comparable work
21during the school term.
22 A school board may make such changes in its calendar for
23the school term as may be required by any changes in the legal
24school holidays prescribed in Section 24-2. A school board may
25make changes in its calendar for the school term as may be
26necessary to reflect the utilization of teachers' institute

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1days as parental institute days as provided in Section
210-22.18d.
3 The calendar for the school term and any changes must be
4submitted to and approved by the regional superintendent of
5schools before the calendar or changes may take effect.
6 With the prior approval of the State Board of Education and
7subject to review by the State Board of Education every 3
8years, any school board may, by resolution of its board and in
9agreement with affected exclusive collective bargaining
10agents, establish experimental educational programs, including
11but not limited to programs for e-learning days as authorized
12under Section 10-20.56 of this Code, self-directed learning, or
13outside of formal class periods, which programs when so
14approved shall be considered to comply with the requirements of
15this Section as respects numbers of days of actual pupil
16attendance and with the other requirements of this Act as
17respects courses of instruction.
18(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
19 (105 ILCS 5/10-22.5a) (from Ch. 122, par. 10-22.5a)
20 Sec. 10-22.5a. Attendance by dependents of United States
21military personnel, foreign exchange students, and certain
22nonresident pupils.
23 (a) To enter into written agreements with cultural exchange
24organizations, or with nationally recognized eleemosynary
25institutions that promote excellence in the arts, mathematics,

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1or science. The written agreements may provide for tuition free
2attendance at the local district school by foreign exchange
3students, or by nonresident pupils of eleemosynary
4institutions. The local board of education, as part of the
5agreement, may require that the cultural exchange program or
6the eleemosynary institutions provide services to the district
7in exchange for the waiver of nonresident tuition.
8 To enter into written agreements with adjacent school
9districts to provide for tuition free attendance by a student
10of the adjacent district when requested for the student's
11health and safety by the student or parent and both districts
12determine that the student's health or safety will be served by
13such attendance. Districts shall not be required to enter into
14such agreements nor be required to alter existing
15transportation services due to the attendance of such
16non-resident pupils.
17 (a-5) If, at the time of enrollment, a dependent of United
18States military personnel is housed in temporary housing
19located outside of a school district, but will be living within
20the district within 60 days after the time of initial
21enrollment, the dependent must be allowed to enroll, subject to
22the requirements of this subsection (a-5), and must not be
23charged tuition. Any United States military personnel
24attempting to enroll a dependent under this subsection (a-5)
25shall provide proof that the dependent will be living within
26the district within 60 days after the time of initial

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1enrollment. Proof of residency may include, but is not limited
2to, postmarked mail addressed to the military personnel and
3sent to an address located within the district, a lease
4agreement for occupancy of a residence located within the
5district, or proof of ownership of a residence located within
6the district.
7 (b) Nonresident pupils and foreign exchange students
8attending school on a tuition free basis under such agreements
9and nonresident dependents of United States military personnel
10attending school on a tuition free basis may be counted for the
11purposes of determining the apportionment of State aid provided
12under Section 18-8.05 or 18-8.15 of this Code. No organization
13or institution participating in agreements authorized under
14this Section may exclude any individual for participation in
15its program on account of the person's race, color, sex,
16religion or nationality.
17(Source: P.A. 98-739, eff. 7-16-14.)
18 (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
19 Sec. 10-22.20. Classes for adults and youths whose
20schooling has been interrupted; conditions for State
21reimbursement; use of child care facilities.
22 (a) To establish special classes for the instruction (1) of
23persons of age 21 years or over and (2) of persons less than
24age 21 and not otherwise in attendance in public school, for
25the purpose of providing adults in the community and youths

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1whose schooling has been interrupted with such additional basic
2education, vocational skill training, and other instruction as
3may be necessary to increase their qualifications for
4employment or other means of self-support and their ability to
5meet their responsibilities as citizens, including courses of
6instruction regularly accepted for graduation from elementary
7or high schools and for Americanization and high school
8equivalency testing review classes.
9 The board shall pay the necessary expenses of such classes
10out of school funds of the district, including costs of student
11transportation and such facilities or provision for child-care
12as may be necessary in the judgment of the board to permit
13maximum utilization of the courses by students with children,
14and other special needs of the students directly related to
15such instruction. The expenses thus incurred shall be subject
16to State reimbursement, as provided in this Section. The board
17may make a tuition charge for persons taking instruction who
18are not subject to State reimbursement, such tuition charge not
19to exceed the per capita cost of such classes.
20 The cost of such instruction, including the additional
21expenses herein authorized, incurred for recipients of
22financial aid under the Illinois Public Aid Code, or for
23persons for whom education and training aid has been authorized
24under Section 9-8 of that Code, shall be assumed in its
25entirety from funds appropriated by the State to the Illinois
26Community College Board.

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1 (b) The Illinois Community College Board shall establish
2the standards for the courses of instruction reimbursed under
3this Section. The Illinois Community College Board shall
4supervise the administration of the programs. The Illinois
5Community College Board shall determine the cost of instruction
6in accordance with standards established by the Illinois
7Community College Board, including therein other incidental
8costs as herein authorized, which shall serve as the basis of
9State reimbursement in accordance with the provisions of this
10Section. In the approval of programs and the determination of
11the cost of instruction, the Illinois Community College Board
12shall provide for the maximum utilization of federal funds for
13such programs. The Illinois Community College Board shall also
14provide for:
15 (1) the development of an index of need for program
16 planning and for area funding allocations, as defined by
17 the Illinois Community College Board;
18 (2) the method for calculating hours of instruction, as
19 defined by the Illinois Community College Board, claimable
20 for reimbursement and a method to phase in the calculation
21 and for adjusting the calculations in cases where the
22 services of a program are interrupted due to circumstances
23 beyond the control of the program provider;
24 (3) a plan for the reallocation of funds to increase
25 the amount allocated for grants based upon program
26 performance as set forth in subsection (d) below; and

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1 (4) the development of standards for determining
2 grants based upon performance as set forth in subsection
3 (d) below and a plan for the phased-in implementation of
4 those standards.
5 For instruction provided by school districts and community
6college districts beginning July 1, 1996 and thereafter,
7reimbursement provided by the Illinois Community College Board
8for classes authorized by this Section shall be provided from
9funds appropriated for the reimbursement criteria set forth in
10subsection (c) below.
11 (c) Upon the annual approval of the Illinois Community
12College Board, reimbursement shall be first provided for
13transportation, child care services, and other special needs of
14the students directly related to instruction and then from the
15funds remaining an amount equal to the product of the total
16credit hours or units of instruction approved by the Illinois
17Community College Board, multiplied by the following:
18 (1) For adult basic education, the maximum
19 reimbursement per credit hour or per unit of instruction
20 shall be equal to (i) through fiscal year 2017, the general
21 state aid per pupil foundation level established in
22 subsection (B) of Section 18-8.05, divided by 60, or (ii)
23 in fiscal year 2018 and thereafter, the prior fiscal year
24 reimbursement level multiplied by the Consumer Price Index
25 for All Urban Consumers for all items published by the
26 United States Department of Labor;

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1 (2) The maximum reimbursement per credit hour or per
2 unit of instruction in subparagraph (1) above shall be
3 weighted for students enrolled in classes defined as
4 vocational skills and approved by the Illinois Community
5 College Board by 1.25;
6 (3) The maximum reimbursement per credit hour or per
7 unit of instruction in subparagraph (1) above shall be
8 multiplied by .90 for students enrolled in classes defined
9 as adult secondary education programs and approved by the
10 Illinois Community College Board;
11 (4) (Blank); and
12 (5) Funding for program years after 1999-2000 shall be
13 determined by the Illinois Community College Board.
14 (d) Upon its annual approval, the Illinois Community
15College Board shall provide grants to eligible programs for
16supplemental activities to improve or expand services under the
17Adult Education Act. Eligible programs shall be determined
18based upon performance outcomes of students in the programs as
19set by the Illinois Community College Board.
20 (e) Reimbursement under this Section shall not exceed the
21actual costs of the approved program.
22 If the amount appropriated to the Illinois Community
23College Board for reimbursement under this Section is less than
24the amount required under this Act, the apportionment shall be
25proportionately reduced.
26 School districts and community college districts may

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1assess students up to $3.00 per credit hour, for classes other
2than Adult Basic Education level programs, if needed to meet
3program costs.
4 (f) An education plan shall be established for each adult
5or youth whose schooling has been interrupted and who is
6participating in the instructional programs provided under
7this Section.
8 Each school board and community college shall keep an
9accurate and detailed account of the students assigned to and
10receiving instruction under this Section who are subject to
11State reimbursement and shall submit reports of services
12provided commencing with fiscal year 1997 as required by the
13Illinois Community College Board.
14 For classes authorized under this Section, a credit hour or
15unit of instruction is equal to 15 hours of direct instruction
16for students enrolled in approved adult education programs at
17midterm and making satisfactory progress, in accordance with
18standards established by the Illinois Community College Board.
19 (g) Upon proof submitted to the Illinois Department of
20Human Services of the payment of all claims submitted under
21this Section, that Department shall apply for federal funds
22made available therefor and any federal funds so received shall
23be paid into the General Revenue Fund in the State Treasury.
24 School districts or community colleges providing classes
25under this Section shall submit applications to the Illinois
26Community College Board for preapproval in accordance with the

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1standards established by the Illinois Community College Board.
2Payments shall be made by the Illinois Community College Board
3based upon approved programs. Interim expenditure reports may
4be required by the Illinois Community College Board. Final
5claims for the school year shall be submitted to the regional
6superintendents for transmittal to the Illinois Community
7College Board. Final adjusted payments shall be made by
8September 30.
9 If a school district or community college district fails to
10provide, or is providing unsatisfactory or insufficient
11classes under this Section, the Illinois Community College
12Board may enter into agreements with public or private
13educational or other agencies other than the public schools for
14the establishment of such classes.
15 (h) If a school district or community college district
16establishes child-care facilities for the children of
17participants in classes established under this Section, it may
18extend the use of these facilities to students who have
19obtained employment and to other persons in the community whose
20children require care and supervision while the parent or other
21person in charge of the children is employed or otherwise
22absent from the home during all or part of the day. It may make
23the facilities available before and after as well as during
24regular school hours to school age and preschool age children
25who may benefit thereby, including children who require care
26and supervision pending the return of their parent or other

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1person in charge of their care from employment or other
2activity requiring absence from the home.
3 The Illinois Community College Board shall pay to the board
4the cost of care in the facilities for any child who is a
5recipient of financial aid under the Illinois Public Aid Code.
6 The board may charge for care of children for whom it
7cannot make claim under the provisions of this Section. The
8charge shall not exceed per capita cost, and to the extent
9feasible, shall be fixed at a level which will permit
10utilization by employed parents of low or moderate income. It
11may also permit any other State or local governmental agency or
12private agency providing care for children to purchase care.
13 After July 1, 1970 when the provisions of Section 10-20.20
14become operative in the district, children in a child-care
15facility shall be transferred to the kindergarten established
16under that Section for such portion of the day as may be
17required for the kindergarten program, and only the prorated
18costs of care and training provided in the Center for the
19remaining period shall be charged to the Illinois Department of
20Human Services or other persons or agencies paying for such
21care.
22 (i) The provisions of this Section shall also apply to
23school districts having a population exceeding 500,000.
24 (j) In addition to claiming reimbursement under this
25Section, a school district may claim general State aid under
26Section 18-8.05 or evidence-based funding under Section

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118-8.15 for any student under age 21 who is enrolled in courses
2accepted for graduation from elementary or high school and who
3otherwise meets the requirements of Section 18-8.05 or 18-8.15,
4as applicable.
5(Source: P.A. 98-718, eff. 1-1-15.)
6 (105 ILCS 5/10-29)
7 Sec. 10-29. Remote educational programs.
8 (a) For purposes of this Section, "remote educational
9program" means an educational program delivered to students in
10the home or other location outside of a school building that
11meets all of the following criteria:
12 (1) A student may participate in the program only after
13 the school district, pursuant to adopted school board
14 policy, and a person authorized to enroll the student under
15 Section 10-20.12b of this Code determine that a remote
16 educational program will best serve the student's
17 individual learning needs. The adopted school board policy
18 shall include, but not be limited to, all of the following:
19 (A) Criteria for determining that a remote
20 educational program will best serve a student's
21 individual learning needs. The criteria must include
22 consideration of, at a minimum, a student's prior
23 attendance, disciplinary record, and academic history.
24 (B) Any limitations on the number of students or
25 grade levels that may participate in a remote

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1 educational program.
2 (C) A description of the process that the school
3 district will use to approve participation in the
4 remote educational program. The process must include
5 without limitation a requirement that, for any student
6 who qualifies to receive services pursuant to the
7 federal Individuals with Disabilities Education
8 Improvement Act of 2004, the student's participation
9 in a remote educational program receive prior approval
10 from the student's individualized education program
11 team.
12 (D) A description of the process the school
13 district will use to develop and approve a written
14 remote educational plan that meets the requirements of
15 subdivision (5) of this subsection (a).
16 (E) A description of the system the school district
17 will establish to calculate the number of clock hours a
18 student is participating in instruction in accordance
19 with the remote educational program.
20 (F) A description of the process for renewing a
21 remote educational program at the expiration of its
22 term.
23 (G) Such other terms and provisions as the school
24 district deems necessary to provide for the
25 establishment and delivery of a remote educational
26 program.

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1 (2) The school district has determined that the remote
2 educational program's curriculum is aligned to State
3 learning standards and that the program offers instruction
4 and educational experiences consistent with those given to
5 students at the same grade level in the district.
6 (3) The remote educational program is delivered by
7 instructors that meet the following qualifications:
8 (A) they are certificated under Article 21 of this
9 Code;
10 (B) they meet applicable highly qualified criteria
11 under the federal No Child Left Behind Act of 2001; and
12 (C) they have responsibility for all of the
13 following elements of the program: planning
14 instruction, diagnosing learning needs, prescribing
15 content delivery through class activities, assessing
16 learning, reporting outcomes to administrators and
17 parents and guardians, and evaluating the effects of
18 instruction.
19 (4) During the period of time from and including the
20 opening date to the closing date of the regular school term
21 of the school district established pursuant to Section
22 10-19 of this Code, participation in a remote educational
23 program may be claimed for general State aid purposes under
24 Section 18-8.05 of this Code or evidence-based funding
25 purposes under Section 18-8.15 of this Code on any calendar
26 day, notwithstanding whether the day is a day of pupil

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1 attendance or institute day on the school district's
2 calendar or any other provision of law restricting
3 instruction on that day. If the district holds year-round
4 classes in some buildings, the district shall classify each
5 student's participation in a remote educational program as
6 either on a year-round or a non-year-round schedule for
7 purposes of claiming general State aid or evidence-based
8 funding. Outside of the regular school term of the
9 district, the remote educational program may be offered as
10 part of any summer school program authorized by this Code.
11 (5) Each student participating in a remote educational
12 program must have a written remote educational plan that
13 has been approved by the school district and a person
14 authorized to enroll the student under Section 10-20.12b of
15 this Code. The school district and a person authorized to
16 enroll the student under Section 10-20.12b of this Code
17 must approve any amendment to a remote educational plan.
18 The remote educational plan must include, but is not
19 limited to, all of the following:
20 (A) Specific achievement goals for the student
21 aligned to State learning standards.
22 (B) A description of all assessments that will be
23 used to measure student progress, which description
24 shall indicate the assessments that will be
25 administered at an attendance center within the school
26 district.

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1 (C) A description of the progress reports that will
2 be provided to the school district and the person or
3 persons authorized to enroll the student under Section
4 10-20.12b of this Code.
5 (D) Expectations, processes, and schedules for
6 interaction between a teacher and student.
7 (E) A description of the specific responsibilities
8 of the student's family and the school district with
9 respect to equipment, materials, phone and Internet
10 service, and any other requirements applicable to the
11 home or other location outside of a school building
12 necessary for the delivery of the remote educational
13 program.
14 (F) If applicable, a description of how the remote
15 educational program will be delivered in a manner
16 consistent with the student's individualized education
17 program required by Section 614(d) of the federal
18 Individuals with Disabilities Education Improvement
19 Act of 2004 or plan to ensure compliance with Section
20 504 of the federal Rehabilitation Act of 1973.
21 (G) A description of the procedures and
22 opportunities for participation in academic and
23 extra-curricular activities and programs within the
24 school district.
25 (H) The identification of a parent, guardian, or
26 other responsible adult who will provide direct

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1 supervision of the program. The plan must include an
2 acknowledgment by the parent, guardian, or other
3 responsible adult that he or she may engage only in
4 non-teaching duties not requiring instructional
5 judgment or the evaluation of a student. The plan shall
6 designate the parent, guardian, or other responsible
7 adult as non-teaching personnel or volunteer personnel
8 under subsection (a) of Section 10-22.34 of this Code.
9 (I) The identification of a school district
10 administrator who will oversee the remote educational
11 program on behalf of the school district and who may be
12 contacted by the student's parents with respect to any
13 issues or concerns with the program.
14 (J) The term of the student's participation in the
15 remote educational program, which may not extend for
16 longer than 12 months, unless the term is renewed by
17 the district in accordance with subdivision (7) of this
18 subsection (a).
19 (K) A description of the specific location or
20 locations in which the program will be delivered. If
21 the remote educational program is to be delivered to a
22 student in any location other than the student's home,
23 the plan must include a written determination by the
24 school district that the location will provide a
25 learning environment appropriate for the delivery of
26 the program. The location or locations in which the

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1 program will be delivered shall be deemed a long
2 distance teaching reception area under subsection (a)
3 of Section 10-22.34 of this Code.
4 (L) Certification by the school district that the
5 plan meets all other requirements of this Section.
6 (6) Students participating in a remote educational
7 program must be enrolled in a school district attendance
8 center pursuant to the school district's enrollment policy
9 or policies. A student participating in a remote
10 educational program must be tested as part of all
11 assessments administered by the school district pursuant
12 to Section 2-3.64a-5 of this Code at the attendance center
13 in which the student is enrolled and in accordance with the
14 attendance center's assessment policies and schedule. The
15 student must be included within all accountability
16 determinations for the school district and attendance
17 center under State and federal law.
18 (7) The term of a student's participation in a remote
19 educational program may not extend for longer than 12
20 months, unless the term is renewed by the school district.
21 The district may only renew a student's participation in a
22 remote educational program following an evaluation of the
23 student's progress in the program, a determination that the
24 student's continuation in the program will best serve the
25 student's individual learning needs, and an amendment to
26 the student's written remote educational plan addressing

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1 any changes for the upcoming term of the program.
2 For purposes of this Section, a remote educational program
3does not include instruction delivered to students through an
4e-learning program approved under Section 10-20.56 of this
5Code.
6 (b) A school district may, by resolution of its school
7board, establish a remote educational program.
8 (c) Clock hours of instruction by students in a remote
9educational program meeting the requirements of this Section
10may be claimed by the school district and shall be counted as
11school work for general State aid purposes in accordance with
12and subject to the limitations of Section 18-8.05 of this Code
13or evidence-based funding purposes in accordance with and
14subject to the limitations of Section 18-8.15 of this Code.
15 (d) The impact of remote educational programs on wages,
16hours, and terms and conditions of employment of educational
17employees within the school district shall be subject to local
18collective bargaining agreements.
19 (e) The use of a home or other location outside of a school
20building for a remote educational program shall not cause the
21home or other location to be deemed a public school facility.
22 (f) A remote educational program may be used, but is not
23required, for instruction delivered to a student in the home or
24other location outside of a school building that is not claimed
25for general State aid purposes under Section 18-8.05 of this
26Code or evidence-based funding purposes under Section 18-8.15

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1of this Code.
2 (g) School districts that, pursuant to this Section, adopt
3a policy for a remote educational program must submit to the
4State Board of Education a copy of the policy and any
5amendments thereto, as well as data on student participation in
6a format specified by the State Board of Education. The State
7Board of Education may perform or contract with an outside
8entity to perform an evaluation of remote educational programs
9in this State.
10 (h) The State Board of Education may adopt any rules
11necessary to ensure compliance by remote educational programs
12with the requirements of this Section and other applicable
13legal requirements.
14(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
1599-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
16 (105 ILCS 5/11E-135)
17 Sec. 11E-135. Incentives. For districts reorganizing under
18this Article and for a district or districts that annex all of
19the territory of one or more entire other school districts in
20accordance with Article 7 of this Code, the following payments
21shall be made from appropriations made for these purposes:
22 (a)(1) For a combined school district, as defined in
23Section 11E-20 of this Code, or for a unit district, as defined
24in Section 11E-25 of this Code, for its first year of
25existence, the general State aid and supplemental general State

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1aid calculated under Section 18-8.05 of this Code or the
2evidence-based funding calculated under Section 18-8.15 of
3this Code, as applicable, shall be computed for the new
4district and for the previously existing districts for which
5property is totally included within the new district. If the
6computation on the basis of the previously existing districts
7is greater, a supplementary payment equal to the difference
8shall be made for the first 4 years of existence of the new
9district.
10 (2) For a school district that annexes all of the territory
11of one or more entire other school districts as defined in
12Article 7 of this Code, for the first year during which the
13change of boundaries attributable to the annexation becomes
14effective for all purposes, as determined under Section 7-9 of
15this Code, the general State aid and supplemental general State
16aid calculated under Section 18-8.05 of this Code or the
17evidence-based funding calculated under Section 18-8.15 of
18this Code, as applicable, shall be computed for the annexing
19district as constituted after the annexation and for the
20annexing and each annexed district as constituted prior to the
21annexation; and if the computation on the basis of the annexing
22and annexed districts as constituted prior to the annexation is
23greater, then a supplementary payment equal to the difference
24shall be made for the first 4 years of existence of the
25annexing school district as constituted upon the annexation.
26 (3) For 2 or more school districts that annex all of the

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1territory of one or more entire other school districts, as
2defined in Article 7 of this Code, for the first year during
3which the change of boundaries attributable to the annexation
4becomes effective for all purposes, as determined under Section
57-9 of this Code, the general State aid and supplemental
6general State aid calculated under Section 18-8.05 of this Code
7or the evidence-based funding calculated under Section 18-8.15
8of this Code, as applicable, shall be computed for each
9annexing district as constituted after the annexation and for
10each annexing and annexed district as constituted prior to the
11annexation; and if the aggregate of the general State aid and
12supplemental general State aid or evidence-based funding, as
13applicable, as so computed for the annexing districts as
14constituted after the annexation is less than the aggregate of
15the general State aid and supplemental general State aid or
16evidence-based funding, as applicable, as so computed for the
17annexing and annexed districts, as constituted prior to the
18annexation, then a supplementary payment equal to the
19difference shall be made and allocated between or among the
20annexing districts, as constituted upon the annexation, for the
21first 4 years of their existence. The total difference payment
22shall be allocated between or among the annexing districts in
23the same ratio as the pupil enrollment from that portion of the
24annexed district or districts that is annexed to each annexing
25district bears to the total pupil enrollment from the entire
26annexed district or districts, as such pupil enrollment is

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1determined for the school year last ending prior to the date
2when the change of boundaries attributable to the annexation
3becomes effective for all purposes. The amount of the total
4difference payment and the amount thereof to be allocated to
5the annexing districts shall be computed by the State Board of
6Education on the basis of pupil enrollment and other data that
7shall be certified to the State Board of Education, on forms
8that it shall provide for that purpose, by the regional
9superintendent of schools for each educational service region
10in which the annexing and annexed districts are located.
11 (4) For a school district conversion, as defined in Section
1211E-15 of this Code, or a multi-unit conversion, as defined in
13subsection (b) of Section 11E-30 of this Code, if in their
14first year of existence the newly created elementary districts
15and the newly created high school district, from a school
16district conversion, or the newly created elementary district
17or districts and newly created combined high school - unit
18district, from a multi-unit conversion, qualify for less
19general State aid under Section 18-8.05 of this Code or
20evidence-based funding under Section 18-8.15 of this Code than
21would have been payable under Section 18-8.05 or 18-8.15, as
22applicable, for that same year to the previously existing
23districts, then a supplementary payment equal to that
24difference shall be made for the first 4 years of existence of
25the newly created districts. The aggregate amount of each
26supplementary payment shall be allocated among the newly

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1created districts in the proportion that the deemed pupil
2enrollment in each district during its first year of existence
3bears to the actual aggregate pupil enrollment in all of the
4districts during their first year of existence. For purposes of
5each allocation:
6 (A) the deemed pupil enrollment of the newly created
7 high school district from a school district conversion
8 shall be an amount equal to its actual pupil enrollment for
9 its first year of existence multiplied by 1.25;
10 (B) the deemed pupil enrollment of each newly created
11 elementary district from a school district conversion
12 shall be an amount equal to its actual pupil enrollment for
13 its first year of existence reduced by an amount equal to
14 the product obtained when the amount by which the newly
15 created high school district's deemed pupil enrollment
16 exceeds its actual pupil enrollment for its first year of
17 existence is multiplied by a fraction, the numerator of
18 which is the actual pupil enrollment of the newly created
19 elementary district for its first year of existence and the
20 denominator of which is the actual aggregate pupil
21 enrollment of all of the newly created elementary districts
22 for their first year of existence;
23 (C) the deemed high school pupil enrollment of the
24 newly created combined high school - unit district from a
25 multi-unit conversion shall be an amount equal to its
26 actual grades 9 through 12 pupil enrollment for its first

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1 year of existence multiplied by 1.25; and
2 (D) the deemed elementary pupil enrollment of each
3 newly created district from a multi-unit conversion shall
4 be an amount equal to each district's actual grade K
5 through 8 pupil enrollment for its first year of existence,
6 reduced by an amount equal to the product obtained when the
7 amount by which the newly created combined high school -
8 unit district's deemed high school pupil enrollment
9 exceeds its actual grade 9 through 12 pupil enrollment for
10 its first year of existence is multiplied by a fraction,
11 the numerator of which is the actual grade K through 8
12 pupil enrollment of each newly created district for its
13 first year of existence and the denominator of which is the
14 actual aggregate grade K through 8 pupil enrollment of all
15 such newly created districts for their first year of
16 existence.
17 The aggregate amount of each supplementary payment under
18this subdivision (4) and the amount thereof to be allocated to
19the newly created districts shall be computed by the State
20Board of Education on the basis of pupil enrollment and other
21data, which shall be certified to the State Board of Education,
22on forms that it shall provide for that purpose, by the
23regional superintendent of schools for each educational
24service region in which the newly created districts are
25located.
26 (5) For a partial elementary unit district, as defined in

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1subsection (a) or (c) of Section 11E-30 of this Code, if, in
2the first year of existence, the newly created partial
3elementary unit district qualifies for less general State aid
4and supplemental general State aid under Section 18-8.05 of
5this Code or less evidence-based funding under Section 18-8.15
6of this Code, as applicable, than would have been payable under
7those Sections that Section for that same year to the
8previously existing districts that formed the partial
9elementary unit district, then a supplementary payment equal to
10that difference shall be made to the partial elementary unit
11district for the first 4 years of existence of that newly
12created district.
13 (6) For an elementary opt-in, as described in subsection
14(d) of Section 11E-30 of this Code, the general State aid or
15evidence-based funding difference shall be computed in
16accordance with paragraph (5) of this subsection (a) as if the
17elementary opt-in was included in an optional elementary unit
18district at the optional elementary unit district's original
19effective date. If the calculation in this paragraph (6) is
20less than that calculated in paragraph (5) of this subsection
21(a) at the optional elementary unit district's original
22effective date, then no adjustments may be made. If the
23calculation in this paragraph (6) is more than that calculated
24in paragraph (5) of this subsection (a) at the optional
25elementary unit district's original effective date, then the
26excess must be paid as follows:

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1 (A) If the effective date for the elementary opt-in is
2 one year after the effective date for the optional
3 elementary unit district, 100% of the calculated excess
4 shall be paid to the optional elementary unit district in
5 each of the first 4 years after the effective date of the
6 elementary opt-in.
7 (B) If the effective date for the elementary opt-in is
8 2 years after the effective date for the optional
9 elementary unit district, 75% of the calculated excess
10 shall be paid to the optional elementary unit district in
11 each of the first 4 years after the effective date of the
12 elementary opt-in.
13 (C) If the effective date for the elementary opt-in is
14 3 years after the effective date for the optional
15 elementary unit district, 50% of the calculated excess
16 shall be paid to the optional elementary unit district in
17 each of the first 4 years after the effective date of the
18 elementary opt-in.
19 (D) If the effective date for the elementary opt-in is
20 4 years after the effective date for the optional
21 elementary unit district, 25% of the calculated excess
22 shall be paid to the optional elementary unit district in
23 each of the first 4 years after the effective date of the
24 elementary opt-in.
25 (E) If the effective date for the elementary opt-in is
26 5 years after the effective date for the optional

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1 elementary unit district, the optional elementary unit
2 district is not eligible for any additional incentives due
3 to the elementary opt-in.
4 (6.5) For a school district that annexes territory detached
5from another school district whereby the enrollment of the
6annexing district increases by 90% or more as a result of the
7annexation, for the first year during which the change of
8boundaries attributable to the annexation becomes effective
9for all purposes as determined under Section 7-9 of this Code,
10the general State aid and supplemental general State aid or
11evidence-based funding, as applicable, calculated under this
12Section shall be computed for the district gaining territory
13and the district losing territory as constituted after the
14annexation and for the same districts as constituted prior to
15the annexation; and if the aggregate of the general State aid
16and supplemental general State aid or evidence-based funding,
17as applicable, as so computed for the district gaining
18territory and the district losing territory as constituted
19after the annexation is less than the aggregate of the general
20State aid and supplemental general State aid or evidence-based
21funding, as applicable, as so computed for the district gaining
22territory and the district losing territory as constituted
23prior to the annexation, then a supplementary payment shall be
24made to the annexing district for the first 4 years of
25existence after the annexation, equal to the difference
26multiplied by the ratio of student enrollment in the territory

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1detached to the total student enrollment in the district losing
2territory for the year prior to the effective date of the
3annexation. The amount of the total difference and the
4proportion paid to the annexing district shall be computed by
5the State Board of Education on the basis of pupil enrollment
6and other data that must be submitted to the State Board of
7Education in accordance with Section 7-14A of this Code. The
8changes to this Section made by Public Act 95-707 are intended
9to be retroactive and applicable to any annexation taking
10effect on or after July 1, 2004. For annexations that are
11eligible for payments under this paragraph (6.5) and that are
12effective on or after July 1, 2004, but before January 11, 2008
13(the effective date of Public Act 95-707), the first required
14yearly payment under this paragraph (6.5) shall be paid in the
15fiscal year of January 11, 2008 (the effective date of Public
16Act 95-707). Subsequent required yearly payments shall be paid
17in subsequent fiscal years until the payment obligation under
18this paragraph (6.5) is complete.
19 (7) Claims for financial assistance under this subsection
20(a) may not be recomputed except as expressly provided under
21Section 18-8.05 or 18-8.15 of this Code.
22 (8) Any supplementary payment made under this subsection
23(a) must be treated as separate from all other payments made
24pursuant to Section 18-8.05 or 18-8.15 of this Code.
25 (b)(1) After the formation of a combined school district,
26as defined in Section 11E-20 of this Code, or a unit district,

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1as defined in Section 11E-25 of this Code, a computation shall
2be made to determine the difference between the salaries
3effective in each of the previously existing districts on June
430, prior to the creation of the new district. For the first 4
5years after the formation of the new district, a supplementary
6State aid reimbursement shall be paid to the new district equal
7to the difference between the sum of the salaries earned by
8each of the certificated members of the new district, while
9employed in one of the previously existing districts during the
10year immediately preceding the formation of the new district,
11and the sum of the salaries those certificated members would
12have been paid during the year immediately prior to the
13formation of the new district if placed on the salary schedule
14of the previously existing district with the highest salary
15schedule.
16 (2) After the territory of one or more school districts is
17annexed by one or more other school districts as defined in
18Article 7 of this Code, a computation shall be made to
19determine the difference between the salaries effective in each
20annexed district and in the annexing district or districts as
21they were each constituted on June 30 preceding the date when
22the change of boundaries attributable to the annexation became
23effective for all purposes, as determined under Section 7-9 of
24this Code. For the first 4 years after the annexation, a
25supplementary State aid reimbursement shall be paid to each
26annexing district as constituted after the annexation equal to

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1the difference between the sum of the salaries earned by each
2of the certificated members of the annexing district as
3constituted after the annexation, while employed in an annexed
4or annexing district during the year immediately preceding the
5annexation, and the sum of the salaries those certificated
6members would have been paid during the immediately preceding
7year if placed on the salary schedule of whichever of the
8annexing or annexed districts had the highest salary schedule
9during the immediately preceding year.
10 (3) For each new high school district formed under a school
11district conversion, as defined in Section 11E-15 of this Code,
12the State shall make a supplementary payment for 4 years equal
13to the difference between the sum of the salaries earned by
14each certified member of the new high school district, while
15employed in one of the previously existing districts, and the
16sum of the salaries those certified members would have been
17paid if placed on the salary schedule of the previously
18existing district with the highest salary schedule.
19 (4) For each newly created partial elementary unit
20district, the State shall make a supplementary payment for 4
21years equal to the difference between the sum of the salaries
22earned by each certified member of the newly created partial
23elementary unit district, while employed in one of the
24previously existing districts that formed the partial
25elementary unit district, and the sum of the salaries those
26certified members would have been paid if placed on the salary

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1schedule of the previously existing district with the highest
2salary schedule. The salary schedules used in the calculation
3shall be those in effect in the previously existing districts
4for the school year prior to the creation of the new partial
5elementary unit district.
6 (5) For an elementary district opt-in, as described in
7subsection (d) of Section 11E-30 of this Code, the salary
8difference incentive shall be computed in accordance with
9paragraph (4) of this subsection (b) as if the opted-in
10elementary district was included in the optional elementary
11unit district at the optional elementary unit district's
12original effective date. If the calculation in this paragraph
13(5) is less than that calculated in paragraph (4) of this
14subsection (b) at the optional elementary unit district's
15original effective date, then no adjustments may be made. If
16the calculation in this paragraph (5) is more than that
17calculated in paragraph (4) of this subsection (b) at the
18optional elementary unit district's original effective date,
19then the excess must be paid as follows:
20 (A) If the effective date for the elementary opt-in is
21 one year after the effective date for the optional
22 elementary unit district, 100% of the calculated excess
23 shall be paid to the optional elementary unit district in
24 each of the first 4 years after the effective date of the
25 elementary opt-in.
26 (B) If the effective date for the elementary opt-in is

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1 2 years after the effective date for the optional
2 elementary unit district, 75% of the calculated excess
3 shall be paid to the optional elementary unit district in
4 each of the first 4 years after the effective date of the
5 elementary opt-in.
6 (C) If the effective date for the elementary opt-in is
7 3 years after the effective date for the optional
8 elementary unit district, 50% of the calculated excess
9 shall be paid to the optional elementary unit district in
10 each of the first 4 years after the effective date of the
11 elementary opt-in.
12 (D) If the effective date for the elementary opt-in is
13 4 years after the effective date for the partial elementary
14 unit district, 25% of the calculated excess shall be paid
15 to the optional elementary unit district in each of the
16 first 4 years after the effective date of the elementary
17 opt-in.
18 (E) If the effective date for the elementary opt-in is
19 5 years after the effective date for the optional
20 elementary unit district, the optional elementary unit
21 district is not eligible for any additional incentives due
22 to the elementary opt-in.
23 (5.5) After the formation of a cooperative high school by 2
24or more school districts under Section 10-22.22c of this Code,
25a computation shall be made to determine the difference between
26the salaries effective in each of the previously existing high