Bill Text: IL SB2170 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Counties Code. Requires the imposition of a school facility occupation tax in a county if the electors of the county have approved a proposition for the tax. Provides that a school facility occupation tax imposed by approval of the electors may be reduced or discontinued if the electors have voted to reduce or discontinue the tax. Provides that the State will not limit or alter rights and powers so as to impair the rights and remedies of holders of bonds secured by proceeds of a school facility occupation tax. Amends the Local Government Debt Reform Act. Removes a sentence providing that a backdoor referendum is not required for alternate bonds if the proceeds backing the alternate bonds are realized from revenues obtained from a school facility occupation tax. Amends the School Code. Provides that a referendum shall not be required if the purchase, construction, or building of a school building is paid from funds received from the County School Facility Occupation Tax Law or from the proceeds of bonds secured by revenues obtained from that Law. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Passed) 2011-08-23 - Public Act . . . . . . . . . 97-0542 [SB2170 Detail]

Download: Illinois-2011-SB2170-Amended.html

---

Sen. James F. Clayborne, Jr.

Filed: 4/12/2011

09700SB2170sam003 LRB097 09013 PJG 53947 a
AMENDMENT TO SENATE BILL 2170
AMENDMENT NO. ______. Amend Senate Bill 2170, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 5. The Local Government Debt Reform Act is amended
by changing Section 15 as follows:
(30 ILCS 350/15) (from Ch. 17, par. 6915)
Sec. 15. Double-barrelled bonds. Whenever revenue bonds
have been authorized to be issued pursuant to applicable law or
whenever there exists for a governmental unit a revenue source,
the procedures set forth in this Section may be used by a
governing body. General obligation bonds may be issued in lieu
of such revenue bonds as authorized, and general obligation
bonds may be issued payable from any revenue source. Such
general obligation bonds may be referred to as "alternate
bonds". Alternate bonds may be issued without any referendum or

09700SB2170sam003 - 2 - LRB097 09013 PJG 53947 a
backdoor referendum except as provided in this Section, upon
the terms provided in Section 10 of this Act without reference
to other provisions of law, but only upon the conditions
provided in this Section. Alternate bonds shall not be regarded
as or included in any computation of indebtedness for the
purpose of any statutory provision or limitation except as
expressly provided in this Section.
Such conditions are:
(a) Alternate bonds shall be issued for a lawful corporate
purpose. If issued in lieu of revenue bonds, alternate bonds
shall be issued for the purposes for which such revenue bonds
shall have been authorized. If issued payable from a revenue
source in the manner hereinafter provided, which revenue source
is limited in its purposes or applications, then the alternate
bonds shall be issued only for such limited purposes or
applications. Alternate bonds may be issued payable from either
enterprise revenues or revenue sources, or both.
(b) Alternate bonds shall be subject to backdoor
referendum. The provisions of Section 5 of this Act shall apply
to such backdoor referendum, together with the provisions
hereof. The authorizing ordinance shall be published in a
newspaper of general circulation in the governmental unit.
Along with or as part of the authorizing ordinance, there shall
be published a notice of (1) the specific number of voters
required to sign a petition requesting that the issuance of the
alternate bonds be submitted to referendum, (2) the time when

09700SB2170sam003 - 3 - LRB097 09013 PJG 53947 a
such petition must be filed, (3) the date of the prospective
referendum, and (4), with respect to authorizing ordinances
adopted on or after January 1, 1991, a statement that
identifies any revenue source that will be used to pay debt
service on the alternate bonds. The clerk or secretary of the
governmental unit shall make a petition form available to
anyone requesting one. If no petition is filed with the clerk
or secretary within 30 days of publication of the authorizing
ordinance and notice, the alternate bonds shall be authorized
to be issued. But if within this 30 days period, a petition is
filed with such clerk or secretary signed by electors numbering
the greater of (i) 7.5% of the registered voters in the
governmental unit or (ii) 200 of those registered voters or 15%
of those registered voters, whichever is less, asking that the
issuance of such alternate bonds be submitted to referendum,
the clerk or secretary shall certify such question for
submission at an election held in accordance with the general
election law. The question on the ballot shall include a
statement of any revenue source that will be used to pay debt
service on the alternate bonds. The alternate bonds shall be
authorized to be issued if a majority of the votes cast on the
question at such election are in favor thereof provided that
notice of the bond referendum, if held before July 1, 1999, has
been given in accordance with the provisions of Section 12-5 of
the Election Code in effect at the time of the bond referendum,
at least 10 and not more than 45 days before the date of the

09700SB2170sam003 - 4 - LRB097 09013 PJG 53947 a
election, notwithstanding the time for publication otherwise
imposed by Section 12-5. Notices required in connection with
the submission of public questions on or after July 1, 1999
shall be as set forth in Section 12-5 of the Election Code.
Backdoor referendum proceedings for bonds and alternate bonds
to be issued in lieu of such bonds may be conducted at the same
time.
(c) To the extent payable from enterprise revenues, such
revenues shall have been determined by the governing body to be
sufficient to provide for or pay in each year to final maturity
of such alternate bonds all of the following: (1) costs of
operation and maintenance of the utility or enterprise, but not
including depreciation, (2) debt service on all outstanding
revenue bonds payable from such enterprise revenues, (3) all
amounts required to meet any fund or account requirements with
respect to such outstanding revenue bonds, (4) other
contractual or tort liability obligations, if any, payable from
such enterprise revenues, and (5) in each year, an amount not
less than 1.25 times debt service of all (i) alternate bonds
payable from such enterprise revenues previously issued and
outstanding and (ii) alternate bonds proposed to be issued. To
the extent payable from one or more revenue sources, such
sources shall have been determined by the governing body to
provide in each year, an amount not less than 1.25 times debt
service of all alternate bonds payable from such revenue
sources previously issued and outstanding and alternate bonds

09700SB2170sam003 - 5 - LRB097 09013 PJG 53947 a
proposed to be issued. The 1.25 figure in the preceding
sentence shall be reduced to 1.10 if the revenue source is a
governmental revenue source. The conditions enumerated in this
subsection (c) need not be met for that amount of debt service
provided for by the setting aside of proceeds of bonds or other
moneys at the time of the delivery of such bonds.
Notwithstanding any other provision of this Section, a backdoor
referendum is not required if the proceeds backing the debt are
realized from revenues obtained from the County School Facility
Occupation Tax Law under Section 5-1006.7 of the Counties Code.
(c-1) In the case of alternate bonds issued as variable
rate bonds (including refunding bonds), debt service shall be
projected based on the rate for the most recent date shown in
the 20 G.O. Bond Index of average municipal bond yields as
published in the most recent edition of The Bond Buyer
published in New York, New York (or any successor publication
or index, or if such publication or index is no longer
published, then any index of long-term municipal tax-exempt
bond yields selected by the governmental unit), as of the date
of determination referred to in subsection (c) of this Section.
Any interest or fees that may be payable to the provider of a
letter of credit, line of credit, surety bond, bond insurance,
or other credit enhancement relating to such alternate bonds
and any fees that may be payable to any remarketing agent need
not be taken into account for purposes of such projection. If
the governmental unit enters into an agreement in connection

09700SB2170sam003 - 6 - LRB097 09013 PJG 53947 a
with such alternate bonds at the time of issuance thereof
pursuant to which the governmental unit agrees for a specified
period of time to pay an amount calculated at an agreed-upon
rate or index based on a notional amount and the other party
agrees to pay the governmental unit an amount calculated at an
agreed-upon rate or index based on such notional amount,
interest shall be projected for such specified period of time
on the basis of the agreed-upon rate payable by the
governmental unit.
(d) The determination of the sufficiency of enterprise
revenues or a revenue source, as applicable, shall be supported
by reference to the most recent audit of the governmental unit,
which shall be for a fiscal year ending not earlier than 18
months previous to the time of issuance of the alternate bonds.
If such audit does not adequately show such enterprise revenues
or revenue source, as applicable, or if such enterprise
revenues or revenue source, as applicable, are shown to be
insufficient, then the determination of sufficiency shall be
supported by the report of an independent accountant or
feasibility analyst, the latter having a national reputation
for expertise in such matters, demonstrating the sufficiency of
such revenues and explaining, if appropriate, by what means the
revenues will be greater than as shown in the audit. Whenever
such sufficiency is demonstrated by reference to a schedule of
higher rates or charges for enterprise revenues or a higher tax
imposition for a revenue source, such higher rates, charges or

09700SB2170sam003 - 7 - LRB097 09013 PJG 53947 a
taxes shall have been properly imposed by an ordinance adopted
prior to the time of delivery of alternate bonds. The reference
to and acceptance of an audit or report, as the case may be,
and the determination of the governing body as to sufficiency
of enterprise revenues or a revenue source shall be conclusive
evidence that the conditions of this Section have been met and
that the alternate bonds are valid.
(e) The enterprise revenues or revenue source, as
applicable, shall be in fact pledged to the payment of the
alternate bonds; and the governing body shall covenant, to the
extent it is empowered to do so, to provide for, collect and
apply such enterprise revenues or revenue source, as
applicable, to the payment of the alternate bonds and the
provision of not less than an additional .25 (or .10 for
governmental revenue sources) times debt service. The pledge
and establishment of rates or charges for enterprise revenues,
or the imposition of taxes in a given rate or amount, as
provided in this Section for alternate bonds, shall constitute
a continuing obligation of the governmental unit with respect
to such establishment or imposition and a continuing
appropriation of the amounts received. All covenants relating
to alternate bonds and the conditions and obligations imposed
by this Section are enforceable by any bondholder of alternate
bonds affected, any taxpayer of the governmental unit, and the
People of the State of Illinois acting through the Attorney
General or any designee, and in the event that any such action

09700SB2170sam003 - 8 - LRB097 09013 PJG 53947 a
results in an order finding that the governmental unit has not
properly set rates or charges or imposed taxes to the extent it
is empowered to do so or collected and applied enterprise
revenues or any revenue source, as applicable, as required by
this Act, the plaintiff in any such action shall be awarded
reasonable attorney's fees. The intent is that such enterprise
revenues or revenue source, as applicable, shall be sufficient
and shall be applied to the payment of debt service on such
alternate bonds so that taxes need not be levied, or if levied
need not be extended, for such payment. Nothing in this Section
shall inhibit or restrict the authority of a governing body to
determine the lien priority of any bonds, including alternate
bonds, which may be issued with respect to any enterprise
revenues or revenue source.
In the event that alternate bonds shall have been issued
and taxes, other than a designated revenue source, shall have
been extended pursuant to the general obligation, full faith
and credit promise supporting such alternate bonds, then the
amount of such alternate bonds then outstanding shall be
included in the computation of indebtedness of the governmental
unit for purposes of all statutory provisions or limitations
until such time as an audit of the governmental unit shall show
that the alternate bonds have been paid from the enterprise
revenues or revenue source, as applicable, pledged thereto for
a complete fiscal year.
Alternate bonds may be issued to refund or advance refund

09700SB2170sam003 - 9 - LRB097 09013 PJG 53947 a
alternate bonds without meeting any of the conditions set forth
in this Section, except that the term of the refunding bonds
shall not be longer than the term of the refunded bonds and
that the debt service payable in any year on the refunding
bonds shall not exceed the debt service payable in such year on
the refunded bonds.
Once issued, alternate bonds shall be and forever remain
until paid or defeased the general obligation of the
governmental unit, for the payment of which its full faith and
credit are pledged, and shall be payable from the levy of taxes
as is provided in this Act for general obligation bonds.
The changes made by this amendatory Act of 1990 do not
affect the validity of bonds authorized before September 1,
1990.
(Source: P.A. 95-675, eff. 10-11-07.)
Section 10. The Counties Code is amended by changing
Section 5-1006.7 as follows:
(55 ILCS 5/5-1006.7)
Sec. 5-1006.7. School facility occupation taxes.
(a) In The county board of any county may impose a tax
shall be imposed upon all persons engaged in the business of
selling tangible personal property, other than personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts from

09700SB2170sam003 - 10 - LRB097 09013 PJG 53947 a
the sales made in the course of business to provide revenue to
be used exclusively for school facility purposes if a
proposition for the tax has been submitted to the electors of
that county and approved by a majority of those voting on the
question as provided in subsection (c). The tax under this
Section shall may be imposed only in one-quarter percent
increments and may not exceed 1%.
This additional tax may not be imposed on the sale of food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks,
and food that has been prepared for immediate consumption) and
prescription and non-prescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics. The Department of Revenue has full
power to administer and enforce this subsection, to collect all
taxes and penalties due under this subsection, to dispose of
taxes and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of a tax or penalty
under this subsection. The Department shall deposit all taxes
and penalties collected under this subsection into a special
fund created for that purpose.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same

09700SB2170sam003 - 11 - LRB097 09013 PJG 53947 a
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
and all provisions of the Uniform Penalty and Interest Act as
if those provisions were set forth in this subsection.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act permits the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability by separately stating that tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that sellers are required to
collect under the Use Tax Act, pursuant to any bracketed
schedules set forth by the Department.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those

09700SB2170sam003 - 12 - LRB097 09013 PJG 53947 a
sales of service, transfer tangible personal property within
the county as an incident to a sale of service.
This tax may not be imposed on sales of food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used by
diabetics.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department and deposited into a
special fund created for that purpose. The Department has full
power to administer and enforce this subsection, to collect all
taxes and penalties due under this subsection, to dispose of
taxes and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of a tax or penalty
under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties and
definition of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that that

09700SB2170sam003 - 13 - LRB097 09013 PJG 53947 a
reference to State in the definition of supplier maintaining a
place of business in this State means the county), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the county), 5, 7,
8 (except that the jurisdiction to which the tax is a debt to
the extent indicated in that Section 8 is the county), 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the county), Section 15, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized to
collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(c) The tax under this Section may not be imposed until, by
ordinance or resolution of the county board, the question of
imposing the tax has been submitted to the electors of the
county at a regular election and approved by a majority of the
electors voting on the question. For all regular elections held

09700SB2170sam003 - 14 - LRB097 09013 PJG 53947 a
prior to the effective date of this amendatory Act of the 97th
General Assembly, upon Upon a resolution by the county board or
a resolution by school district boards that represent at least
51% of the student enrollment within the county, the county
board must certify the question to the proper election
authority in accordance with the Election Code.
For all regular elections held prior to the effective date
of this amendatory Act of the 97th General Assembly, the The
election authority must submit the question in substantially
the following form:
Shall (name of county) be authorized to impose a
retailers' occupation tax and a service occupation tax
(commonly referred to as a "sales tax") at a rate of
(insert rate) to be used exclusively for school facility
purposes?
The election authority must record the votes as "Yes" or "No".
If a majority of the electors voting on the question vote
in the affirmative, then the county may, thereafter, impose the
tax.
For all regular elections held on or after the effective
date of this amendatory Act of the 97th General Assembly, the
regional superintendent of schools for the county must, upon
receipt of a resolution or resolutions of school district
boards that represent more than 50% of the student enrollment
within the county, certify the question to the proper election
authority for submission to the electors of the county at the

09700SB2170sam003 - 15 - LRB097 09013 PJG 53947 a
next regular election at which the question lawfully may be
submitted to the electors, all in accordance with the Election
Code.
For all regular elections held on or after the effective
date of this amendatory Act of the 97th General Assembly, the
election authority must submit the question in substantially
the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a "sales tax") be
imposed in (name of county) at a rate of (insert rate) to
be used exclusively for school facility purposes?
The election authority must record the votes as "Yes" or "No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
For the purposes of this subsection (c), "enrollment" means
the head count of the students residing in the county on the
last school day of September of each year, which must be
reported on the Illinois State Board of Education Public School
Fall Enrollment/Housing Report.
(d) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the School
Facility Occupation Tax Fund, which shall be an unappropriated
trust fund held outside the State treasury.
On or before the 25th day of each calendar month, the

09700SB2170sam003 - 16 - LRB097 09013 PJG 53947 a
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the regional
superintendents of schools in counties from which retailers or
servicemen have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each regional superintendent of schools and disbursed
to him or her in accordance with 3-14.31 of the School Code, is
equal to the amount (not including credit memoranda) collected
from the county under this Section during the second preceding
calendar month by the Department, (i) less 2% of that amount,
which shall be deposited into the Tax Compliance and
Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering and enforcing the provisions of this Section,
on behalf of the county, (ii) plus an amount that the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body; (iii) less an
amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
county; and (iv) less any amount that the Department determines
is necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the county.
When certifying the amount of a monthly disbursement to a
regional superintendent of schools under this Section, the
Department shall increase or decrease the amounts by an amount
necessary to offset any miscalculation of previous

09700SB2170sam003 - 17 - LRB097 09013 PJG 53947 a
disbursements within the previous 6 months from the time a
miscalculation is discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the regional
superintendents of the schools provided for in this Section,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the School Facility Occupation Tax Fund.
(e) For the purposes of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This subsection does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(f) Nothing in this Section may be construed to authorize a
county board to impose a tax to be imposed upon the privilege

09700SB2170sam003 - 18 - LRB097 09013 PJG 53947 a
of engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(g) If a county board imposes a tax under this Section
pursuant to a referendum held before the effective date of this
amendatory Act of the 97th General Assembly at a rate below the
rate set forth in the question approved by a majority of
electors of that county voting on the question as provided in
subsection (c), then the county board may, by ordinance,
increase the rate of the tax up to the rate set forth in the
question approved by a majority of electors of that county
voting on the question as provided in subsection (c). If a
county board imposes a tax under this Section pursuant to a
referendum held before the effective date of this amendatory
Act of the 97th General Assembly, then the board may, by
ordinance, discontinue or reduce the rate of the tax. If a tax
is imposed under this Section pursuant to a referendum held on
or after the effective date of this amendatory Act of the 97th
General Assembly, then the county board may reduce or
discontinue the tax, but only in accordance with subsection
(h-5) of this Section. If, however, a school board issues bonds
that are secured backed by the proceeds of the tax under this
Section, then the county board may not reduce the tax rate or
discontinue the tax if that rate reduction or discontinuance
would adversely affect inhibit the school board's ability to
pay the principal and interest on those bonds as they become

09700SB2170sam003 - 19 - LRB097 09013 PJG 53947 a
due or necessitate the extension of additional property taxes
to pay the principal and interest on those bonds. If the county
board reduces the tax rate or discontinues the tax, then a
referendum must be held in accordance with subsection (c) of
this Section in order to increase the rate of the tax or to
reimpose the discontinued tax.
The results of any election that imposes, reduces, or
discontinues authorizes a proposition to impose a tax under
this Section must be certified by the election authority, and
or to change the rate of the tax along with an ordinance
imposing the tax, or any ordinance that increases or lowers the
rate or discontinues the tax, must be certified by the county
clerk and, in each case, filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of
July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
(h) For purposes of this Section, "school facility
purposes" means (i) the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real

09700SB2170sam003 - 20 - LRB097 09013 PJG 53947 a
property and interest in real property required, or expected to
be required, in connection with the capital facilities and (ii)
the payment of bonds or other obligations heretofore or
hereafter issued, including bonds or other obligations
heretofore or hereafter issued to refund or to continue to
refund bonds or other obligations issued, for school facility
purposes, provided that the taxes levied to pay those bonds are
abated by the amount of the taxes imposed under this Section
that are used to pay those bonds. "School-facility purposes"
also includes fire prevention, safety, energy conservation,
disabled accessibility, school security, and specified repair
purposes set forth under Section 17-2.11 of the School Code.
(h-5) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after the effective date of this amendatory Act of the 97th
General Assembly may, by ordinance or resolution, submit to the
voters of the county the question of reducing or discontinuing
the tax. In the ordinance or resolution, the county board shall
certify the question to the proper election authority in
accordance with the Election Code. The election authority must
submit the question in substantially the following form:
Shall the school facility retailers' occupation tax
and service occupation tax (commonly referred to as the
"school facility sales tax") currently imposed in (name of
county) at a rate of (insert rate) be (reduced to (insert
rate))(discontinued)?

09700SB2170sam003 - 21 - LRB097 09013 PJG 53947 a
If a majority of the electors voting on the question vote in
the affirmative, then, subject to the provisions of subsection
(g) of this Section, the tax shall be reduced or discontinued
as set forth in the question.
(i) This Section does not apply to Cook County.
(j) This Section may be cited as the County School Facility
Occupation Tax Law.
(Source: P.A. 95-675, eff. 10-11-07.)
Section 15. The School Code is amended by changing Section
10-22.36 as follows:
(105 ILCS 5/10-22.36) (from Ch. 122, par. 10-22.36)
Sec. 10-22.36. Buildings for school purposes. To build or
purchase a building for school classroom or instructional
purposes upon the approval of a majority of the voters upon the
proposition at a referendum held for such purpose or in
accordance with Section 17-2.11, 19-3.5, or 19-3.10. The board
may initiate such referendum by resolution. The board shall
certify the resolution and proposition to the proper election
authority for submission in accordance with the general
election law.
The questions of building one or more new buildings for
school purposes or office facilities, and issuing bonds for the
purpose of borrowing money to purchase one or more buildings or
sites for such buildings or office sites, to build one or more

09700SB2170sam003 - 22 - LRB097 09013 PJG 53947 a
new buildings for school purposes or office facilities or to
make additions and improvements to existing school buildings,
may be combined into one or more propositions on the ballot.
Before erecting, or purchasing or remodeling such a
building the board shall submit the plans and specifications
respecting heating, ventilating, lighting, seating, water
supply, toilets and safety against fire to the regional
superintendent of schools having supervision and control over
the district, for approval in accordance with Section 2-3.12.
Notwithstanding any of the foregoing, no referendum shall
be required if the purchase, construction, or building of any
such building is completed (1) occurs while the building is
being leased by the school district or (2) is paid with with
the expenditure of (A) funds derived from the sale or
disposition of other buildings, land, or structures of the
school district or (B) funds received (i) as a grant under the
School Construction Law, or (ii) as gifts or donations,
provided that no funds to purchase, construct, or build
complete such building, other than lease payments, are derived
from the district's bonded indebtedness or the tax levy of the
district, or (iii) from the County School Facility Occupation
Tax Law under Section 5-1006.7 of the Counties Code.
Notwithstanding any of the foregoing, no referendum shall
be required if the purchase, construction, or building of any
such building is paid with funds received from the County
School Facility Occupation Tax Law under Section 5-1006.7 of

09700SB2170sam003 - 23 - LRB097 09013 PJG 53947 a
the Counties Code or from the proceeds of bonds or other debt
obligations secured by revenues obtained from that Law.
(Source: P.A. 95-675, eff. 10-11-07; 96-517, eff. 8-14-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.".