Bill Text: IL SB2196 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Illinois Public Labor Relations Act. Provides that, if a unit of local government provides for arbitration of impasses, the employer's financial ability to fund the proposals based on existing available resources shall be given primary consideration, if that ability is not predicated on certain revenue assumptions. Amends provisions concerning interest arbitration for security employee, peace officer, and fire fighter disputes. Amends the Downstate Teacher Article of the Illinois Pension Code. For FY 2019 through FY 2023, requires the actual employer to contribute a portion of the employer's normal cost. Beginning in FY 2023, requires the employer to contribute the full employer's normal cost. Amends the School Code. Removes provisions concerning modification or waiver of rules regarding contracting with a commercial driver training school. Makes changes to provisions concerning: (i) incentives for school districts that reorganize or annex all of the territory of an entire school district; (ii) discharge of unfunded mandates; (iii) contracts for third party non-instructional services that are currently performed by an employee; and (iv) exceptions to physical education requirements. Amends the Illinois Educational Labor Relations Act. With respect to collective bargaining between an educational employer (other than the Chicago school district) and its employees' representative, provides that, when making wage and benefit determinations during interest arbitration, the employer's financial ability to fund the proposals based on existing available resources shall be given primary consideration, with certain exceptions. Amends the Prevailing Wage Act; exempts public works projects with an estimated project cost of $250,000 or less. Makes other changes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2017-05-12 - Rule 3-9(a) / Re-referred to Assignments [SB2196 Detail]

Download: Illinois-2017-SB2196-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2196

Introduced 4/27/2017, by Sen. Kyle McCarter

SYNOPSIS AS INTRODUCED:
See Index

Amends the Illinois Public Labor Relations Act. Provides that, if a unit of local government provides for arbitration of impasses, the employer's financial ability to fund the proposals based on existing available resources shall be given primary consideration, if that ability is not predicated on certain revenue assumptions. Amends provisions concerning interest arbitration for security employee, peace officer, and fire fighter disputes. Amends the Downstate Teacher Article of the Illinois Pension Code. For FY 2019 through FY 2023, requires the actual employer to contribute a portion of the employer's normal cost. Beginning in FY 2023, requires the employer to contribute the full employer's normal cost. Amends the School Code. Removes provisions concerning modification or waiver of rules regarding contracting with a commercial driver training school. Makes changes to provisions concerning: (i) incentives for school districts that reorganize or annex all of the territory of an entire school district; (ii) discharge of unfunded mandates; (iii) contracts for third party non-instructional services that are currently performed by an employee; and (iv) exceptions to physical education requirements. Amends the Illinois Educational Labor Relations Act. With respect to collective bargaining between an educational employer (other than the Chicago school district) and its employees' representative, provides that, when making wage and benefit determinations during interest arbitration, the employer's financial ability to fund the proposals based on existing available resources shall be given primary consideration, with certain exceptions. Amends the Prevailing Wage Act; exempts public works projects with an estimated project cost of $250,000 or less. Makes other changes.
LRB100 12499 RPS 25458 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

SB2196LRB100 12499 RPS 25458 b
1 AN ACT concerning government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. The Illinois Public Labor Relations Act is
5amended by changing Sections 7 and 14 as follows:
6 (5 ILCS 315/7) (from Ch. 48, par. 1607)
7 Sec. 7. Duty to bargain. A public employer and the
8exclusive representative have the authority and the duty to
9bargain collectively set forth in this Section.
10 For the purposes of this Act, "to bargain collectively"
11means the performance of the mutual obligation of the public
12employer or his designated representative and the
13representative of the public employees to meet at reasonable
14times, including meetings in advance of the budget-making
15process, and to negotiate in good faith with respect to wages,
16hours, and other conditions of employment, not excluded by
17Section 4 of this Act, or the negotiation of an agreement, or
18any question arising thereunder and the execution of a written
19contract incorporating any agreement reached if requested by
20either party, but such obligation does not compel either party
21to agree to a proposal or require the making of a concession.
22 The duty "to bargain collectively" shall also include an
23obligation to negotiate over any matter with respect to wages,

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1hours and other conditions of employment, not specifically
2provided for in any other law or not specifically in violation
3of the provisions of any law. If any other law pertains, in
4part, to a matter affecting the wages, hours and other
5conditions of employment, such other law shall not be construed
6as limiting the duty "to bargain collectively" and to enter
7into collective bargaining agreements containing clauses which
8either supplement, implement, or relate to the effect of such
9provisions in other laws.
10 The duty "to bargain collectively" shall also include
11negotiations as to the terms of a collective bargaining
12agreement. The parties may, by mutual agreement, provide for
13arbitration of impasses resulting from their inability to agree
14upon wages, hours and terms and conditions of employment to be
15included in a collective bargaining agreement. Such
16arbitration provisions shall be subject to the Illinois
17"Uniform Arbitration Act" unless agreed by the parties. If a
18unit of local government, as an employer, and public employees
19provide for arbitration of impasses, the employer's financial
20ability to fund the proposals based on existing available
21resources shall be given primary consideration, provided that
22such ability is not predicated on an assumption that lines of
23credit or reserve funds are available or that the employer may
24or will receive or develop new sources of revenue or increase
25existing sources of revenue.
26 The duty "to bargain collectively" shall also mean that no

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1party to a collective bargaining contract shall terminate or
2modify such contract, unless the party desiring such
3termination or modification:
4 (1) serves a written notice upon the other party to the
5 contract of the proposed termination or modification 60
6 days prior to the expiration date thereof, or in the event
7 such contract contains no expiration date, 60 days prior to
8 the time it is proposed to make such termination or
9 modification;
10 (2) offers to meet and confer with the other party for
11 the purpose of negotiating a new contract or a contract
12 containing the proposed modifications;
13 (3) notifies the Board within 30 days after such notice
14 of the existence of a dispute, provided no agreement has
15 been reached by that time; and
16 (4) continues in full force and effect, without
17 resorting to strike or lockout, all the terms and
18 conditions of the existing contract for a period of 60 days
19 after such notice is given to the other party or until the
20 expiration date of such contract, whichever occurs later.
21 The duties imposed upon employers, employees and labor
22organizations by paragraphs (2), (3) and (4) shall become
23inapplicable upon an intervening certification of the Board,
24under which the labor organization, which is a party to the
25contract, has been superseded as or ceased to be the exclusive
26representative of the employees pursuant to the provisions of

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1subsection (a) of Section 9, and the duties so imposed shall
2not be construed as requiring either party to discuss or agree
3to any modification of the terms and conditions contained in a
4contract for a fixed period, if such modification is to become
5effective before such terms and conditions can be reopened
6under the provisions of the contract.
7 Collective bargaining for home care and home health workers
8who function as personal assistants and individual maintenance
9home health workers under the Home Services Program shall be
10limited to the terms and conditions of employment under the
11State's control, as defined in Public Act 93-204 or this
12amendatory Act of the 97th General Assembly, as applicable.
13 Collective bargaining for child and day care home providers
14under the child care assistance program shall be limited to the
15terms and conditions of employment under the State's control,
16as defined in this amendatory Act of the 94th General Assembly.
17 Notwithstanding any other provision of this Section,
18whenever collective bargaining is for the purpose of
19establishing an initial agreement following original
20certification of units with fewer than 35 employees, with
21respect to public employees other than peace officers, fire
22fighters, and security employees, the following apply:
23 (1) Not later than 10 days after receiving a written
24 request for collective bargaining from a labor
25 organization that has been newly certified as a
26 representative as defined in Section 6(c), or within such

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1 further period as the parties agree upon, the parties shall
2 meet and commence to bargain collectively and shall make
3 every reasonable effort to conclude and sign a collective
4 bargaining agreement.
5 (2) If anytime after the expiration of the 90-day
6 period beginning on the date on which bargaining is
7 commenced the parties have failed to reach an agreement,
8 either party may notify the Illinois Public Labor Relations
9 Board of the existence of a dispute and request mediation
10 in accordance with the provisions of Section 14 of this
11 Act.
12 (3) If after the expiration of the 30-day period
13 beginning on the date on which mediation commenced, or such
14 additional period as the parties may agree upon, the
15 mediator is not able to bring the parties to agreement by
16 conciliation, either the exclusive representative of the
17 employees or the employer may request of the other, in
18 writing, arbitration and shall submit a copy of the request
19 to the board. Upon submission of the request for
20 arbitration, the parties shall be required to participate
21 in the impasse arbitration procedures set forth in Section
22 14 of this Act, except the right to strike shall not be
23 considered waived pursuant to Section 17 of this Act, until
24 the actual convening of the arbitration hearing.
25(Source: P.A. 97-1158, eff. 1-29-13; 98-1004, eff. 8-18-14.)

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1 (5 ILCS 315/14) (from Ch. 48, par. 1614)
2 Sec. 14. Security employee, peace officer and fire fighter
3disputes.
4 (a) In the case of collective bargaining agreements
5involving units of security employees of a public employer,
6Peace Officer Units, or units of fire fighters or paramedics,
7and in the case of disputes under Section 18, unless the
8parties mutually agree to some other time limit, mediation
9shall commence 30 days prior to the expiration date of such
10agreement or at such later time as the mediation services
11chosen under subsection (b) of Section 12 can be provided to
12the parties. In the case of negotiations for an initial
13collective bargaining agreement, mediation shall commence upon
1415 days notice from either party or at such later time as the
15mediation services chosen pursuant to subsection (b) of Section
1612 can be provided to the parties. In mediation under this
17Section, if either party requests the use of mediation services
18from the Federal Mediation and Conciliation Service, the other
19party shall either join in such request or bear the additional
20cost of mediation services from another source. The mediator
21shall have a duty to keep the Board informed on the progress of
22the mediation. If any dispute has not been resolved within 15
23days after the first meeting of the parties and the mediator,
24or within such other time limit as may be mutually agreed upon
25by the parties, either the exclusive representative or employer
26may request of the other, in writing, arbitration, and shall

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1submit a copy of the request to the Board.
2 (b) Within 10 days after such a request for arbitration has
3been made, the employer shall choose a delegate and the
4employees' exclusive representative shall choose a delegate to
5a panel of arbitration as provided in this Section. The
6employer and employees shall forthwith advise the other and the
7Board of their selections.
8 (c) Within 7 days after the request of either party, the
9parties shall request a panel of impartial arbitrators from
10which they shall select the neutral chairman according to the
11procedures provided in this Section. If the parties have agreed
12to a contract that contains a grievance resolution procedure as
13provided in Section 8, the chairman shall be selected using
14their agreed contract procedure unless they mutually agree to
15another procedure. If the parties fail to notify the Board of
16their selection of neutral chairman within 7 days after receipt
17of the list of impartial arbitrators, the Board shall appoint,
18at random, a neutral chairman from the list. In the absence of
19an agreed contract procedure for selecting an impartial
20arbitrator, either party may request a panel from the Board.
21Within 7 days of the request of either party, the Board shall
22select from the Public Employees Labor Mediation Roster 7
23persons who are on the labor arbitration panels of either the
24American Arbitration Association or the Federal Mediation and
25Conciliation Service, or who are members of the National
26Academy of Arbitrators, as nominees for impartial arbitrator of

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1the arbitration panel. The parties may select an individual on
2the list provided by the Board or any other individual mutually
3agreed upon by the parties. Within 7 days following the receipt
4of the list, the parties shall notify the Board of the person
5they have selected. Unless the parties agree on an alternate
6selection procedure, they shall alternatively strike one name
7from the list provided by the Board until only one name
8remains. A coin toss shall determine which party shall strike
9the first name. If the parties fail to notify the Board in a
10timely manner of their selection for neutral chairman, the
11Board shall appoint a neutral chairman from the Illinois Public
12Employees Mediation/Arbitration Roster.
13 (d) The chairman shall call a hearing to begin within 15
14days and give reasonable notice of the time and place of the
15hearing. The hearing shall be held at the offices of the Board
16or at such other location as the Board deems appropriate. The
17chairman shall preside over the hearing and shall take
18testimony. Any oral or documentary evidence and other data
19deemed relevant by the arbitration panel may be received in
20evidence. The proceedings shall be informal. Technical rules of
21evidence shall not apply and the competency of the evidence
22shall not thereby be deemed impaired. A verbatim record of the
23proceedings shall be made and the arbitrator shall arrange for
24the necessary recording service. Transcripts may be ordered at
25the expense of the party ordering them, but the transcripts
26shall not be necessary for a decision by the arbitration panel.

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1The expense of the proceedings, including a fee for the
2chairman, shall be borne equally by each of the parties to the
3dispute. The delegates, if public officers or employees, shall
4continue on the payroll of the public employer without loss of
5pay. The hearing conducted by the arbitration panel may be
6adjourned from time to time, but unless otherwise agreed by the
7parties, shall be concluded within 30 days of the time of its
8commencement. Majority actions and rulings shall constitute
9the actions and rulings of the arbitration panel. Arbitration
10proceedings under this Section shall not be interrupted or
11terminated by reason of any unfair labor practice charge filed
12by either party at any time.
13 (e) The arbitration panel may administer oaths, require the
14attendance of witnesses, and the production of such books,
15papers, contracts, agreements and documents as may be deemed by
16it material to a just determination of the issues in dispute,
17and for such purpose may issue subpoenas. If any person refuses
18to obey a subpoena, or refuses to be sworn or to testify, or if
19any witness, party or attorney is guilty of any contempt while
20in attendance at any hearing, the arbitration panel may, or the
21attorney general if requested shall, invoke the aid of any
22circuit court within the jurisdiction in which the hearing is
23being held, which court shall issue an appropriate order. Any
24failure to obey the order may be punished by the court as
25contempt.
26 (f) At any time before the rendering of an award, the

SB2196- 10 -LRB100 12499 RPS 25458 b
1chairman of the arbitration panel, if he is of the opinion that
2it would be useful or beneficial to do so, may remand the
3dispute to the parties for further collective bargaining for a
4period not to exceed 2 weeks. If the dispute is remanded for
5further collective bargaining the time provisions of this Act
6shall be extended for a time period equal to that of the
7remand. The chairman of the panel of arbitration shall notify
8the Board of the remand.
9 (g) At or before the conclusion of the hearing held
10pursuant to subsection (d), the arbitration panel shall
11identify the economic issues in dispute, and direct each of the
12parties to submit, within such time limit as the panel shall
13prescribe, to the arbitration panel and to each other its last
14offer of settlement on each economic issue. The determination
15of the arbitration panel as to the issues in dispute and as to
16which of these issues are economic shall be conclusive. The
17arbitration panel, within 30 days after the conclusion of the
18hearing, or such further additional periods to which the
19parties may agree, shall make written findings of fact and
20promulgate a written opinion and shall mail or otherwise
21deliver a true copy thereof to the parties and their
22representatives and to the Board. As to each economic issue,
23the arbitration panel shall adopt the last offer of settlement
24which, in the opinion of the arbitration panel, more nearly
25complies with the applicable factors prescribed in subsection
26(h). The findings, opinions and order as to all other issues

SB2196- 11 -LRB100 12499 RPS 25458 b
1shall be based upon the applicable factors prescribed in
2subsection (h).
3 (h) Where there is no agreement between the parties, or
4where there is an agreement but the parties have begun
5negotiations or discussions looking to a new agreement or
6amendment of the existing agreement, and wage rates or other
7conditions of employment under the proposed new or amended
8agreement are in dispute, the arbitration panel shall base its
9findings, opinions and order upon the following factors, as
10applicable:
11 (1) The lawful authority of the employer.
12 (2) Stipulations of the parties.
13 (3) The employer's financial ability to fund the
14 proposals based on existing available resources shall be
15 given primary consideration, provided that such ability is
16 not predicated on an assumption that lines of credit or
17 reserve funds are available or that the employer may or
18 will receive or develop new sources of revenue or increase
19 existing sources of revenue The interests and welfare of
20 the public and the financial ability of the unit of
21 government to meet those costs.
22 (4) Comparison of the wages, hours and conditions of
23 employment of the employees involved in the arbitration
24 proceeding with the wages, hours and conditions of
25 employment of other employees performing similar services
26 and with other employees generally:

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1 (A) In public employment in comparable
2 communities.
3 (B) In private employment in comparable
4 communities.
5 (5) The average consumer prices for goods and services,
6 commonly known as the cost of living.
7 (6) The overall compensation presently received by the
8 employees, including direct wage compensation, vacations,
9 holidays and other excused time, insurance and pensions,
10 medical and hospitalization benefits, the continuity and
11 stability of employment and all other benefits received.
12 (7) Changes in any of the foregoing circumstances
13 during the pendency of the arbitration proceedings.
14 (8) Such other factors, not confined to the foregoing,
15 which are normally or traditionally taken into
16 consideration in the determination of wages, hours and
17 conditions of employment through voluntary collective
18 bargaining, mediation, fact-finding, arbitration or
19 otherwise between the parties, in the public service or in
20 private employment.
21 (i) In the case of peace officers, the arbitration decision
22shall be limited to wages, hours, and conditions of employment
23(which may include residency requirements in municipalities
24with a population under 1,000,000, but those residency
25requirements shall not allow residency outside of Illinois) and
26shall not include the following: i) residency requirements in

SB2196- 13 -LRB100 12499 RPS 25458 b
1municipalities with a population of at least 1,000,000; ii) the
2type of equipment, other than uniforms, issued or used; iii)
3manning; iv) the total number of employees employed by the
4department; v) mutual aid and assistance agreements to other
5units of government; and vi) the criterion pursuant to which
6force, including deadly force, can be used; provided, nothing
7herein shall preclude an arbitration decision regarding
8equipment or manning levels if such decision is based on a
9finding that the equipment or manning considerations in a
10specific work assignment involve a serious risk to the safety
11of a peace officer beyond that which is inherent in the normal
12performance of police duties. Limitation of the terms of the
13arbitration decision pursuant to this subsection shall not be
14construed to limit the factors upon which the decision may be
15based, as set forth in subsection (h).
16 In the case of fire fighter, and fire department or fire
17district paramedic matters, the arbitration decision shall be
18limited to wages, hours, and conditions of employment
19(including manning and also including residency requirements
20in municipalities with a population under 1,000,000, but those
21residency requirements shall not allow residency outside of
22Illinois) and shall not include the following matters: i)
23residency requirements in municipalities with a population of
24at least 1,000,000; ii) the type of equipment (other than
25uniforms and fire fighter turnout gear) issued or used; iii)
26the total number of employees employed by the department; iv)

SB2196- 14 -LRB100 12499 RPS 25458 b
1mutual aid and assistance agreements to other units of
2government; and v) the criterion pursuant to which force,
3including deadly force, can be used; provided, however, nothing
4herein shall preclude an arbitration decision regarding
5equipment levels if such decision is based on a finding that
6the equipment considerations in a specific work assignment
7involve a serious risk to the safety of a fire fighter beyond
8that which is inherent in the normal performance of fire
9fighter duties. Limitation of the terms of the arbitration
10decision pursuant to this subsection shall not be construed to
11limit the facts upon which the decision may be based, as set
12forth in subsection (h).
13 The changes to this subsection (i) made by Public Act
1490-385 (relating to residency requirements) do not apply to
15persons who are employed by a combined department that performs
16both police and firefighting services; these persons shall be
17governed by the provisions of this subsection (i) relating to
18peace officers, as they existed before the amendment by Public
19Act 90-385.
20 To preserve historical bargaining rights, this subsection
21shall not apply to any provision of a fire fighter collective
22bargaining agreement in effect and applicable on the effective
23date of this Act; provided, however, nothing herein shall
24preclude arbitration with respect to any such provision.
25 (j) Arbitration procedures shall be deemed to be initiated
26by the filing of a letter requesting mediation as required

SB2196- 15 -LRB100 12499 RPS 25458 b
1under subsection (a) of this Section. The commencement of a new
2municipal fiscal year after the initiation of arbitration
3procedures under this Act, but before the arbitration decision,
4or its enforcement, shall not be deemed to render a dispute
5moot, or to otherwise impair the jurisdiction or authority of
6the arbitration panel or its decision. Increases in rates of
7compensation awarded by the arbitration panel may be effective
8only at the start of the fiscal year next commencing after the
9date of the arbitration award. If a new fiscal year has
10commenced either since the initiation of arbitration
11procedures under this Act or since any mutually agreed
12extension of the statutorily required period of mediation under
13this Act by the parties to the labor dispute causing a delay in
14the initiation of arbitration, the foregoing limitations shall
15be inapplicable, and such awarded increases may be retroactive
16to the commencement of the fiscal year, any other statute or
17charter provisions to the contrary, notwithstanding. At any
18time the parties, by stipulation, may amend or modify an award
19of arbitration.
20 (k) Orders of the arbitration panel shall be reviewable,
21upon appropriate petition by either the public employer or the
22exclusive bargaining representative, by the circuit court for
23the county in which the dispute arose or in which a majority of
24the affected employees reside, but only for reasons that the
25arbitration panel was without or exceeded its statutory
26authority; the order is arbitrary, or capricious; or the order

SB2196- 16 -LRB100 12499 RPS 25458 b
1was procured by fraud, collusion or other similar and unlawful
2means. Such petitions for review must be filed with the
3appropriate circuit court within 90 days following the issuance
4of the arbitration order. The pendency of such proceeding for
5review shall not automatically stay the order of the
6arbitration panel. The party against whom the final decision of
7any such court shall be adverse, if such court finds such
8appeal or petition to be frivolous, shall pay reasonable
9attorneys' fees and costs to the successful party as determined
10by said court in its discretion. If said court's decision
11affirms the award of money, such award, if retroactive, shall
12bear interest at the rate of 12 percent per annum from the
13effective retroactive date.
14 (l) During the pendency of proceedings before the
15arbitration panel, existing wages, hours, and other conditions
16of employment shall not be changed by action of either party
17without the consent of the other but a party may so consent
18without prejudice to his rights or position under this Act. The
19proceedings are deemed to be pending before the arbitration
20panel upon the initiation of arbitration procedures under this
21Act.
22 (m) Security officers of public employers, and Peace
23Officers, Fire Fighters and fire department and fire protection
24district paramedics, covered by this Section may not withhold
25services, nor may public employers lock out or prevent such
26employees from performing services at any time.

SB2196- 17 -LRB100 12499 RPS 25458 b
1 (n) All of the terms decided upon by the arbitration panel
2shall be included in an agreement to be submitted to the public
3employer's governing body for ratification and adoption by law,
4ordinance or the equivalent appropriate means.
5 The governing body shall review each term decided by the
6arbitration panel. If the governing body fails to reject one or
7more terms of the arbitration panel's decision by a 3/5 vote of
8those duly elected and qualified members of the governing body,
9within 20 days of issuance, or in the case of firefighters
10employed by a state university, at the next regularly scheduled
11meeting of the governing body after issuance, such term or
12terms shall become a part of the collective bargaining
13agreement of the parties. If the governing body affirmatively
14rejects one or more terms of the arbitration panel's decision,
15it must provide reasons for such rejection with respect to each
16term so rejected, within 20 days of such rejection and the
17parties shall return to the arbitration panel for further
18proceedings and issuance of a supplemental decision with
19respect to the rejected terms. Any supplemental decision by an
20arbitration panel or other decision maker agreed to by the
21parties shall be submitted to the governing body for
22ratification and adoption in accordance with the procedures and
23voting requirements set forth in this Section. The voting
24requirements of this subsection shall apply to all disputes
25submitted to arbitration pursuant to this Section
26notwithstanding any contrary voting requirements contained in

SB2196- 18 -LRB100 12499 RPS 25458 b
1any existing collective bargaining agreement between the
2parties.
3 (o) If the governing body of the employer votes to reject
4the panel's decision, the parties shall return to the panel
5within 30 days from the issuance of the reasons for rejection
6for further proceedings and issuance of a supplemental
7decision. All reasonable costs of such supplemental proceeding
8including the exclusive representative's reasonable attorney's
9fees, as established by the Board, shall be paid by the
10employer.
11 (p) Notwithstanding the provisions of this Section the
12employer and exclusive representative may agree to submit
13unresolved disputes concerning wages, hours, terms and
14conditions of employment to an alternative form of impasse
15resolution.
16(Source: P.A. 98-535, eff. 1-1-14; 98-1151, eff. 1-7-15.)
17 Section 5. The Illinois Pension Code is amended by changing
18Section 16-158 as follows:
19 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
20 (Text of Section WITHOUT the changes made by P.A. 98-599,
21which has been held unconstitutional)
22 Sec. 16-158. Contributions by State and other employing
23units.
24 (a) The State shall make contributions to the System by

SB2196- 19 -LRB100 12499 RPS 25458 b
1means of appropriations from the Common School Fund and other
2State funds of amounts which, together with other employer
3contributions, employee contributions, investment income, and
4other income, will be sufficient to meet the cost of
5maintaining and administering the System on a 90% funded basis
6in accordance with actuarial recommendations.
7 The Board shall determine the amount of State contributions
8required for each fiscal year on the basis of the actuarial
9tables and other assumptions adopted by the Board and the
10recommendations of the actuary, using the formula in subsection
11(b-3).
12 (a-1) Annually, on or before November 15 until November 15,
132011, the Board shall certify to the Governor the amount of the
14required State contribution for the coming fiscal year. The
15certification under this subsection (a-1) shall include a copy
16of the actuarial recommendations upon which it is based and
17shall specifically identify the System's projected State
18normal cost for that fiscal year.
19 On or before May 1, 2004, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2005, taking
22into account the amounts appropriated to and received by the
23System under subsection (d) of Section 7.2 of the General
24Obligation Bond Act.
25 On or before July 1, 2005, the Board shall recalculate and
26recertify to the Governor the amount of the required State

SB2196- 20 -LRB100 12499 RPS 25458 b
1contribution to the System for State fiscal year 2006, taking
2into account the changes in required State contributions made
3by this amendatory Act of the 94th General Assembly.
4 On or before April 1, 2011, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2011, applying
7the changes made by Public Act 96-889 to the System's assets
8and liabilities as of June 30, 2009 as though Public Act 96-889
9was approved on that date.
10 (a-5) On or before November 1 of each year, beginning
11November 1, 2012, the Board shall submit to the State Actuary,
12the Governor, and the General Assembly a proposed certification
13of the amount of the required State contribution to the System
14for the next fiscal year, along with all of the actuarial
15assumptions, calculations, and data upon which that proposed
16certification is based. On or before January 1 of each year,
17beginning January 1, 2013, the State Actuary shall issue a
18preliminary report concerning the proposed certification and
19identifying, if necessary, recommended changes in actuarial
20assumptions that the Board must consider before finalizing its
21certification of the required State contributions. On or before
22January 15, 2013 and each January 15 thereafter, the Board
23shall certify to the Governor and the General Assembly the
24amount of the required State contribution for the next fiscal
25year. The Board's certification must note any deviations from
26the State Actuary's recommended changes, the reason or reasons

SB2196- 21 -LRB100 12499 RPS 25458 b
1for not following the State Actuary's recommended changes, and
2the fiscal impact of not following the State Actuary's
3recommended changes on the required State contribution.
4 (a-10) As soon as practical after the effective date of
5this amendatory Act of the 100th General Assembly, the Board
6shall recalculate and recertify to the State Actuary, the
7Governor, and the General Assembly the projected amount of the
8required State contribution to the System for State fiscal year
92019, taking into account the actual-employer normal-cost
10contributions required by this amendatory Act of the 100th
11General Assembly.
12 (a-15) As soon as practical after the effective date of
13this amendatory act of the 100th General Assembly, the Board
14shall calculate and certify to the State Actuary, the Governor,
15the General Assembly, and each employer under this Article the
16rate of the actual-employer normal-cost contribution to the
17System for State fiscal year 2019, expressed as a percentage of
18salary and determined on a system-wide basis.
19 On or before November 1 of each year, the Board shall
20calculate and certify to the State Actuary, the Governor, and
21the General Assembly, and to each employer under this Article
22(i) the rate of the actual-employer normal-cost contribution to
23the System for the next fiscal year, expressed as a percentage
24of salary and determined on an annual, system-wide basis, and
25(ii) the projected amount of each employer's contribution for
26that fiscal year.

SB2196- 22 -LRB100 12499 RPS 25458 b
1 (b) Through State fiscal year 1995, the State contributions
2shall be paid to the System in accordance with Section 18-7 of
3the School Code.
4 (b-1) Beginning in State fiscal year 1996, on the 15th day
5of each month, or as soon thereafter as may be practicable, the
6Board shall submit vouchers for payment of State contributions
7to the System, in a total monthly amount of one-twelfth of the
8required annual State contribution certified under subsection
9(a-1). From the effective date of this amendatory Act of the
1093rd General Assembly through June 30, 2004, the Board shall
11not submit vouchers for the remainder of fiscal year 2004 in
12excess of the fiscal year 2004 certified contribution amount
13determined under this Section after taking into consideration
14the transfer to the System under subsection (a) of Section
156z-61 of the State Finance Act. These vouchers shall be paid by
16the State Comptroller and Treasurer by warrants drawn on the
17funds appropriated to the System for that fiscal year.
18 If in any month the amount remaining unexpended from all
19other appropriations to the System for the applicable fiscal
20year (including the appropriations to the System under Section
218.12 of the State Finance Act and Section 1 of the State
22Pension Funds Continuing Appropriation Act) is less than the
23amount lawfully vouchered under this subsection, the
24difference shall be paid from the Common School Fund under the
25continuing appropriation authority provided in Section 1.1 of
26the State Pension Funds Continuing Appropriation Act.

SB2196- 23 -LRB100 12499 RPS 25458 b
1 (b-2) Allocations from the Common School Fund apportioned
2to school districts not coming under this System shall not be
3diminished or affected by the provisions of this Article.
4 (b-3) For State fiscal years 2012 through 2045, the minimum
5contribution to the System to be made by the State for each
6fiscal year shall be an amount determined by the System to be
7sufficient to bring the total assets of the System up to 90% of
8the total actuarial liabilities of the System by the end of
9State fiscal year 2045. In making these determinations, the
10required State contribution shall be calculated each year as a
11level percentage of payroll over the years remaining to and
12including fiscal year 2045 and shall be determined under the
13projected unit credit actuarial cost method. For State fiscal
14year 2019 and each year thereafter, the required State
15contribution shall take into consideration the amount of the
16actual-employer normal-cost contribution required under
17subsection (b-4).
18 For State fiscal years 1996 through 2005, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21so that by State fiscal year 2011, the State is contributing at
22the rate required under this Section; except that in the
23following specified State fiscal years, the State contribution
24to the System shall not be less than the following indicated
25percentages of the applicable employee payroll, even if the
26indicated percentage will produce a State contribution in

SB2196- 24 -LRB100 12499 RPS 25458 b
1excess of the amount otherwise required under this subsection
2and subsection (a), and notwithstanding any contrary
3certification made under subsection (a-1) before the effective
4date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
5in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
62003; and 13.56% in FY 2004.
7 Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2006 is
9$534,627,700.
10 Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2007 is
12$738,014,500.
13 For each of State fiscal years 2008 through 2009, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16from the required State contribution for State fiscal year
172007, so that by State fiscal year 2011, the State is
18contributing at the rate otherwise required under this Section.
19 Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2010 is
21$2,089,268,000 and shall be made from the proceeds of bonds
22sold in fiscal year 2010 pursuant to Section 7.2 of the General
23Obligation Bond Act, less (i) the pro rata share of bond sale
24expenses determined by the System's share of total bond
25proceeds, (ii) any amounts received from the Common School Fund
26in fiscal year 2010, and (iii) any reduction in bond proceeds

SB2196- 25 -LRB100 12499 RPS 25458 b
1due to the issuance of discounted bonds, if applicable.
2 Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2011 is
4the amount recertified by the System on or before April 1, 2011
5pursuant to subsection (a-1) of this Section and shall be made
6from the proceeds of bonds sold in fiscal year 2011 pursuant to
7Section 7.2 of the General Obligation Bond Act, less (i) the
8pro rata share of bond sale expenses determined by the System's
9share of total bond proceeds, (ii) any amounts received from
10the Common School Fund in fiscal year 2011, and (iii) any
11reduction in bond proceeds due to the issuance of discounted
12bonds, if applicable. This amount shall include, in addition to
13the amount certified by the System, an amount necessary to meet
14employer contributions required by the State as an employer
15under paragraph (e) of this Section, which may also be used by
16the System for contributions required by paragraph (a) of
17Section 16-127.
18 Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 90% of the total
21actuarial liabilities of the System.
22 Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

SB2196- 26 -LRB100 12499 RPS 25458 b
1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 90%. A reference in this Article to
5the "required State contribution" or any substantially similar
6term does not include or apply to any amounts payable to the
7System under Section 25 of the Budget Stabilization Act.
8 Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter, as calculated
11under this Section and certified under subsection (a-1), shall
12not exceed an amount equal to (i) the amount of the required
13State contribution that would have been calculated under this
14Section for that fiscal year if the System had not received any
15payments under subsection (d) of Section 7.2 of the General
16Obligation Bond Act, minus (ii) the portion of the State's
17total debt service payments for that fiscal year on the bonds
18issued in fiscal year 2003 for the purposes of that Section
197.2, as determined and certified by the Comptroller, that is
20the same as the System's portion of the total moneys
21distributed under subsection (d) of Section 7.2 of the General
22Obligation Bond Act. In determining this maximum for State
23fiscal years 2008 through 2010, however, the amount referred to
24in item (i) shall be increased, as a percentage of the
25applicable employee payroll, in equal increments calculated
26from the sum of the required State contribution for State

SB2196- 27 -LRB100 12499 RPS 25458 b
1fiscal year 2007 plus the applicable portion of the State's
2total debt service payments for fiscal year 2007 on the bonds
3issued in fiscal year 2003 for the purposes of Section 7.2 of
4the General Obligation Bond Act, so that, by State fiscal year
52011, the State is contributing at the rate otherwise required
6under this Section.
7 (b-4) For fiscal year 2019, the actual employer of a
8teacher shall contribute an amount equal to 20% of the full
9employer's normal cost of the benefits earned under this System
10that result from employment by that employer, to be paid to the
11System on a payroll-by-payroll basis, using the percentage of
12salary determined on a system-wide basis and certified by the
13System to all employers for use in the applicable fiscal year.
14 For fiscal year 2020, the actual employer of a teacher
15shall contribute an amount equal to 40% of the full employer's
16normal cost of the benefits earned under this System that
17result from employment by that employer, to be paid to the
18System on a payroll-by-payroll basis, using the percentage of
19salary determined on a system-wide basis and certified by the
20System to all employers for use in the applicable fiscal year.
21 For fiscal year 2021, the actual employer of a teacher
22shall contribute an amount equal to 60% of the full employer's
23normal cost of the benefits earned under this System that
24result from employment by that employer, to be paid to the
25System on a payroll-by-payroll basis, using the percentage of
26salary determined on a system-wide basis and certified by the

SB2196- 28 -LRB100 12499 RPS 25458 b
1System to all employers for use in the applicable fiscal year.
2 For fiscal year 2022, the actual employer of a teacher
3shall contribute an amount equal to 80% of the full employer's
4normal cost of the benefits earned under this System that
5result from employment by that employer, to be paid to the
6System on a payroll-by-payroll basis, using the percentage of
7salary determined on a system-wide basis and certified by the
8System to all employers for use in the applicable fiscal year.
9 For fiscal year 2023 and each fiscal year thereafter, the
10actual employer of a teacher shall contribute an amount equal
11to the full employer's normal cost of the benefits earned under
12this System that result from employment by that employer, to be
13paid to the System on a payroll-by-payroll basis, using the
14percentage of salary determined on a system-wide basis and
15certified by the System to all employers for use in the
16applicable fiscal year.
17 (c) Payment of the required State contributions and of all
18pensions, retirement annuities, death benefits, refunds, and
19other benefits granted under or assumed by this System, and all
20expenses in connection with the administration and operation
21thereof, are obligations of the State.
22 If members are paid from special trust or federal funds
23which are administered by the employing unit, whether school
24district or other unit, the employing unit shall pay to the
25System from such funds the full accruing retirement costs based
26upon that service, which, beginning July 1, 2014, shall be at a

SB2196- 29 -LRB100 12499 RPS 25458 b
1rate, expressed as a percentage of salary, equal to the total
2minimum contribution to the System to be made by the State for
3that fiscal year, including both normal cost and unfunded
4liability components, expressed as a percentage of payroll, as
5determined by the System under subsection (b-3) of this
6Section. Employer contributions, based on salary paid to
7members from federal funds, may be forwarded by the
8distributing agency of the State of Illinois to the System
9prior to allocation, in an amount determined in accordance with
10guidelines established by such agency and the System. Any
11contribution for fiscal year 2015 collected as a result of the
12change made by this amendatory Act of the 98th General Assembly
13shall be considered a State contribution under subsection (b-3)
14of this Section.
15 (d) Effective July 1, 1986, any employer of a teacher as
16defined in paragraph (8) of Section 16-106 shall pay the
17employer's normal cost of benefits based upon the teacher's
18service, in addition to employee contributions, as determined
19by the System. Such employer contributions shall be forwarded
20monthly in accordance with guidelines established by the
21System.
22 However, with respect to benefits granted under Section
2316-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
24of Section 16-106, the employer's contribution shall be 12%
25(rather than 20%) of the member's highest annual salary rate
26for each year of creditable service granted, and the employer

SB2196- 30 -LRB100 12499 RPS 25458 b
1shall also pay the required employee contribution on behalf of
2the teacher. For the purposes of Sections 16-133.4 and
316-133.5, a teacher as defined in paragraph (8) of Section
416-106 who is serving in that capacity while on leave of
5absence from another employer under this Article shall not be
6considered an employee of the employer from which the teacher
7is on leave.
8 (e) Beginning July 1, 1998, every employer of a teacher
9shall pay to the System an employer contribution computed as
10follows:
11 (1) Beginning July 1, 1998 through June 30, 1999, the
12 employer contribution shall be equal to 0.3% of each
13 teacher's salary.
14 (2) Beginning July 1, 1999 and thereafter, the employer
15 contribution shall be equal to 0.58% of each teacher's
16 salary.
17The school district or other employing unit may pay these
18employer contributions out of any source of funding available
19for that purpose and shall forward the contributions to the
20System on the schedule established for the payment of member
21contributions.
22 These employer contributions are intended to offset a
23portion of the cost to the System of the increases in
24retirement benefits resulting from this amendatory Act of 1998.
25 Each employer of teachers is entitled to a credit against
26the contributions required under this subsection (e) with

SB2196- 31 -LRB100 12499 RPS 25458 b
1respect to salaries paid to teachers for the period January 1,
22002 through June 30, 2003, equal to the amount paid by that
3employer under subsection (a-5) of Section 6.6 of the State
4Employees Group Insurance Act of 1971 with respect to salaries
5paid to teachers for that period.
6 The additional 1% employee contribution required under
7Section 16-152 by this amendatory Act of 1998 is the
8responsibility of the teacher and not the teacher's employer,
9unless the employer agrees, through collective bargaining or
10otherwise, to make the contribution on behalf of the teacher.
11 If an employer is required by a contract in effect on May
121, 1998 between the employer and an employee organization to
13pay, on behalf of all its full-time employees covered by this
14Article, all mandatory employee contributions required under
15this Article, then the employer shall be excused from paying
16the employer contribution required under this subsection (e)
17for the balance of the term of that contract. The employer and
18the employee organization shall jointly certify to the System
19the existence of the contractual requirement, in such form as
20the System may prescribe. This exclusion shall cease upon the
21termination, extension, or renewal of the contract at any time
22after May 1, 1998.
23 (f) If the amount of a teacher's salary for any school year
24used to determine final average salary exceeds the member's
25annual full-time salary rate with the same employer for the
26previous school year by more than 6%, the teacher's employer

SB2196- 32 -LRB100 12499 RPS 25458 b
1shall pay to the System, in addition to all other payments
2required under this Section and in accordance with guidelines
3established by the System, the present value of the increase in
4benefits resulting from the portion of the increase in salary
5that is in excess of 6%. This present value shall be computed
6by the System on the basis of the actuarial assumptions and
7tables used in the most recent actuarial valuation of the
8System that is available at the time of the computation. If a
9teacher's salary for the 2005-2006 school year is used to
10determine final average salary under this subsection (f), then
11the changes made to this subsection (f) by Public Act 94-1057
12shall apply in calculating whether the increase in his or her
13salary is in excess of 6%. For the purposes of this Section,
14change in employment under Section 10-21.12 of the School Code
15on or after June 1, 2005 shall constitute a change in employer.
16The System may require the employer to provide any pertinent
17information or documentation. The changes made to this
18subsection (f) by this amendatory Act of the 94th General
19Assembly apply without regard to whether the teacher was in
20service on or after its effective date.
21 Whenever it determines that a payment is or may be required
22under this subsection, the System shall calculate the amount of
23the payment and bill the employer for that amount. The bill
24shall specify the calculations used to determine the amount
25due. If the employer disputes the amount of the bill, it may,
26within 30 days after receipt of the bill, apply to the System

SB2196- 33 -LRB100 12499 RPS 25458 b
1in writing for a recalculation. The application must specify in
2detail the grounds of the dispute and, if the employer asserts
3that the calculation is subject to subsection (g) or (h) of
4this Section, must include an affidavit setting forth and
5attesting to all facts within the employer's knowledge that are
6pertinent to the applicability of that subsection. Upon
7receiving a timely application for recalculation, the System
8shall review the application and, if appropriate, recalculate
9the amount due.
10 The employer contributions required under this subsection
11(f) may be paid in the form of a lump sum within 90 days after
12receipt of the bill. If the employer contributions are not paid
13within 90 days after receipt of the bill, then interest will be
14charged at a rate equal to the System's annual actuarially
15assumed rate of return on investment compounded annually from
16the 91st day after receipt of the bill. Payments must be
17concluded within 3 years after the employer's receipt of the
18bill.
19 (g) This subsection (g) applies only to payments made or
20salary increases given on or after June 1, 2005 but before July
211, 2011. The changes made by Public Act 94-1057 shall not
22require the System to refund any payments received before July
2331, 2006 (the effective date of Public Act 94-1057).
24 When assessing payment for any amount due under subsection
25(f), the System shall exclude salary increases paid to teachers
26under contracts or collective bargaining agreements entered

SB2196- 34 -LRB100 12499 RPS 25458 b
1into, amended, or renewed before June 1, 2005.
2 When assessing payment for any amount due under subsection
3(f), the System shall exclude salary increases paid to a
4teacher at a time when the teacher is 10 or more years from
5retirement eligibility under Section 16-132 or 16-133.2.
6 When assessing payment for any amount due under subsection
7(f), the System shall exclude salary increases resulting from
8overload work, including summer school, when the school
9district has certified to the System, and the System has
10approved the certification, that (i) the overload work is for
11the sole purpose of classroom instruction in excess of the
12standard number of classes for a full-time teacher in a school
13district during a school year and (ii) the salary increases are
14equal to or less than the rate of pay for classroom instruction
15computed on the teacher's current salary and work schedule.
16 When assessing payment for any amount due under subsection
17(f), the System shall exclude a salary increase resulting from
18a promotion (i) for which the employee is required to hold a
19certificate or supervisory endorsement issued by the State
20Teacher Certification Board that is a different certification
21or supervisory endorsement than is required for the teacher's
22previous position and (ii) to a position that has existed and
23been filled by a member for no less than one complete academic
24year and the salary increase from the promotion is an increase
25that results in an amount no greater than the lesser of the
26average salary paid for other similar positions in the district

SB2196- 35 -LRB100 12499 RPS 25458 b
1requiring the same certification or the amount stipulated in
2the collective bargaining agreement for a similar position
3requiring the same certification.
4 When assessing payment for any amount due under subsection
5(f), the System shall exclude any payment to the teacher from
6the State of Illinois or the State Board of Education over
7which the employer does not have discretion, notwithstanding
8that the payment is included in the computation of final
9average salary.
10 (h) When assessing payment for any amount due under
11subsection (f), the System shall exclude any salary increase
12described in subsection (g) of this Section given on or after
13July 1, 2011 but before July 1, 2014 under a contract or
14collective bargaining agreement entered into, amended, or
15renewed on or after June 1, 2005 but before July 1, 2011.
16Notwithstanding any other provision of this Section, any
17payments made or salary increases given after June 30, 2014
18shall be used in assessing payment for any amount due under
19subsection (f) of this Section.
20 (i) The System shall prepare a report and file copies of
21the report with the Governor and the General Assembly by
22January 1, 2007 that contains all of the following information:
23 (1) The number of recalculations required by the
24 changes made to this Section by Public Act 94-1057 for each
25 employer.
26 (2) The dollar amount by which each employer's

SB2196- 36 -LRB100 12499 RPS 25458 b
1 contribution to the System was changed due to
2 recalculations required by Public Act 94-1057.
3 (3) The total amount the System received from each
4 employer as a result of the changes made to this Section by
5 Public Act 94-4.
6 (4) The increase in the required State contribution
7 resulting from the changes made to this Section by Public
8 Act 94-1057.
9 (j) For purposes of determining the required State
10contribution to the System, the value of the System's assets
11shall be equal to the actuarial value of the System's assets,
12which shall be calculated as follows:
13 As of June 30, 2008, the actuarial value of the System's
14assets shall be equal to the market value of the assets as of
15that date. In determining the actuarial value of the System's
16assets for fiscal years after June 30, 2008, any actuarial
17gains or losses from investment return incurred in a fiscal
18year shall be recognized in equal annual amounts over the
195-year period following that fiscal year.
20 (k) For purposes of determining the required State
21contribution to the system for a particular year, the actuarial
22value of assets shall be assumed to earn a rate of return equal
23to the system's actuarially assumed rate of return.
24(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2596-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
266-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)

SB2196- 37 -LRB100 12499 RPS 25458 b
1 Section 10. The School Code is amended by changing Sections
22-3.25g, 10-22.34c, 11E-135, 27-6, 27-7, and 27-24.2 and by
3adding Section 22-62 as follows:
4 (105 ILCS 5/2-3.25g) (from Ch. 122, par. 2-3.25g)
5 Sec. 2-3.25g. Waiver or modification of mandates within the
6School Code and administrative rules and regulations.
7 (a) In this Section:
8 "Board" means a school board or the governing board or
9 administrative district, as the case may be, for a joint
10 agreement.
11 "Eligible applicant" means a school district, joint
12 agreement made up of school districts, or regional
13 superintendent of schools on behalf of schools and programs
14 operated by the regional office of education.
15 "Implementation date" has the meaning set forth in
16 Section 24A-2.5 of this Code.
17 "State Board" means the State Board of Education.
18 (b) Notwithstanding any other provisions of this School
19Code or any other law of this State to the contrary, eligible
20applicants may petition the State Board of Education for the
21waiver or modification of the mandates of this School Code or
22of the administrative rules and regulations promulgated by the
23State Board of Education. Waivers or modifications of
24administrative rules and regulations and modifications of

SB2196- 38 -LRB100 12499 RPS 25458 b
1mandates of this School Code may be requested when an eligible
2applicant demonstrates that it can address the intent of the
3rule or mandate in a more effective, efficient, or economical
4manner or when necessary to stimulate innovation or improve
5student performance. Waivers of mandates of the School Code may
6be requested when the waivers are necessary to stimulate
7innovation or improve student performance. Waivers may not be
8requested from laws, rules, and regulations pertaining to
9special education, teacher educator licensure, teacher tenure
10and seniority, or Section 5-2.1 of this Code or from compliance
11with the No Child Left Behind Act of 2001 (Public Law 107-110).
12Eligible applicants may not seek a waiver or seek a
13modification of a mandate regarding the requirements for (i)
14student performance data to be a significant factor in teacher
15or principal evaluations or (ii) teachers and principals to be
16rated using the 4 categories of "excellent", "proficient",
17"needs improvement", or "unsatisfactory". On September 1,
182014, any previously authorized waiver or modification from
19such requirements shall terminate.
20 (c) Eligible applicants, as a matter of inherent managerial
21policy, and any Independent Authority established under
22Section 2-3.25f-5 of this Code may submit an application for a
23waiver or modification authorized under this Section. Each
24application must include a written request by the eligible
25applicant or Independent Authority and must demonstrate that
26the intent of the mandate can be addressed in a more effective,

SB2196- 39 -LRB100 12499 RPS 25458 b
1efficient, or economical manner or be based upon a specific
2plan for improved student performance and school improvement.
3Any eligible applicant requesting a waiver or modification for
4the reason that intent of the mandate can be addressed in a
5more economical manner shall include in the application a
6fiscal analysis showing current expenditures on the mandate and
7projected savings resulting from the waiver or modification.
8Applications and plans developed by eligible applicants must be
9approved by the board or regional superintendent of schools
10applying on behalf of schools or programs operated by the
11regional office of education following a public hearing on the
12application and plan and the opportunity for the board or
13regional superintendent to hear testimony from staff directly
14involved in its implementation, parents, and students. The time
15period for such testimony shall be separate from the time
16period established by the eligible applicant for public comment
17on other matters. If the applicant is a school district or
18joint agreement requesting a waiver or modification of Section
1927-6 of this Code, the public hearing shall be held on a day
20other than the day on which a regular meeting of the board is
21held.
22 (c-5) If the applicant is a school district, then the
23district shall post information that sets forth the time, date,
24place, and general subject matter of the public hearing on its
25Internet website at least 14 days prior to the hearing. If the
26district is requesting to increase the fee charged for driver

SB2196- 40 -LRB100 12499 RPS 25458 b
1education authorized pursuant to Section 27-24.2 of this Code,
2the website information shall include the proposed amount of
3the fee the district will request. All school districts must
4publish a notice of the public hearing at least 7 days prior to
5the hearing in a newspaper of general circulation within the
6school district that sets forth the time, date, place, and
7general subject matter of the hearing. Districts requesting to
8increase the fee charged for driver education shall include in
9the published notice the proposed amount of the fee the
10district will request. If the applicant is a joint agreement or
11regional superintendent, then the joint agreement or regional
12superintendent shall post information that sets forth the time,
13date, place, and general subject matter of the public hearing
14on its Internet website at least 14 days prior to the hearing.
15If the joint agreement or regional superintendent is requesting
16to increase the fee charged for driver education authorized
17pursuant to Section 27-24.2 of this Code, the website
18information shall include the proposed amount of the fee the
19applicant will request. All joint agreements and regional
20superintendents must publish a notice of the public hearing at
21least 7 days prior to the hearing in a newspaper of general
22circulation in each school district that is a member of the
23joint agreement or that is served by the educational service
24region that sets forth the time, date, place, and general
25subject matter of the hearing, provided that a notice appearing
26in a newspaper generally circulated in more than one school

SB2196- 41 -LRB100 12499 RPS 25458 b
1district shall be deemed to fulfill this requirement with
2respect to all of the affected districts. Joint agreements or
3regional superintendents requesting to increase the fee
4charged for driver education shall include in the published
5notice the proposed amount of the fee the applicant will
6request. The eligible applicant must notify in writing the
7affected exclusive collective bargaining agent and those State
8legislators representing the eligible applicant's territory of
9its intent to seek approval of a waiver or modification and of
10the hearing to be held to take testimony from staff. The
11affected exclusive collective bargaining agents shall be
12notified of such public hearing at least 7 days prior to the
13date of the hearing and shall be allowed to attend such public
14hearing. The eligible applicant shall attest to compliance with
15all of the notification and procedural requirements set forth
16in this Section.
17 (d) A request for a waiver or modification of
18administrative rules and regulations or for a modification of
19mandates contained in this School Code shall be submitted to
20the State Board of Education within 15 days after approval by
21the board or regional superintendent of schools. The
22application as submitted to the State Board of Education shall
23include a description of the public hearing. Except with
24respect to contracting for adaptive driver education, an
25eligible applicant wishing to request a modification or waiver
26of administrative rules of the State Board of Education

SB2196- 42 -LRB100 12499 RPS 25458 b
1regarding contracting with a commercial driver training school
2to provide the course of study authorized under Section 27-24.2
3of this Code must provide evidence with its application that
4the commercial driver training school with which it will
5contract holds a license issued by the Secretary of State under
6Article IV of Chapter 6 of the Illinois Vehicle Code and that
7each instructor employed by the commercial driver training
8school to provide instruction to students served by the school
9district holds a valid teaching certificate or teaching
10license, as applicable, issued under the requirements of this
11Code and rules of the State Board of Education. Such evidence
12must include, but need not be limited to, a list of each
13instructor assigned to teach students served by the school
14district, which list shall include the instructor's name,
15personal identification number as required by the State Board
16of Education, birth date, and driver's license number. If the
17modification or waiver is granted, then the eligible applicant
18shall notify the State Board of Education of any changes in the
19personnel providing instruction within 15 calendar days after
20an instructor leaves the program or a new instructor is hired.
21Such notification shall include the instructor's name,
22personal identification number as required by the State Board
23of Education, birth date, and driver's license number. If a
24school district maintains an Internet website, then the
25district shall post a copy of the final contract between the
26district and the commercial driver training school on the

SB2196- 43 -LRB100 12499 RPS 25458 b
1district's Internet website. If no Internet website exists,
2then the district shall make available the contract upon
3request. A record of all materials in relation to the
4application for contracting must be maintained by the school
5district and made available to parents and guardians upon
6request. The instructor's date of birth and driver's license
7number and any other personally identifying information as
8deemed by the federal Driver's Privacy Protection Act of 1994
9must be redacted from any public materials. Following receipt
10of the waiver or modification request, the State Board shall
11have 45 days to review the application and request. If the
12State Board fails to disapprove the application within that 45
13day period, the waiver or modification shall be deemed granted.
14The State Board may disapprove any request if it is not based
15upon sound educational practices, endangers the health or
16safety of students or staff, compromises equal opportunities
17for learning, or fails to demonstrate that the intent of the
18rule or mandate can be addressed in a more effective,
19efficient, or economical manner or have improved student
20performance as a primary goal. Any request disapproved by the
21State Board may be appealed to the General Assembly by the
22eligible applicant as outlined in this Section.
23 A request for a waiver from mandates contained in this
24School Code shall be submitted to the State Board within 15
25days after approval by the board or regional superintendent of
26schools. The application as submitted to the State Board of

SB2196- 44 -LRB100 12499 RPS 25458 b
1Education shall include a description of the public hearing.
2The description shall include, but need not be limited to, the
3means of notice, the number of people in attendance, the number
4of people who spoke as proponents or opponents of the waiver, a
5brief description of their comments, and whether there were any
6written statements submitted. The State Board shall review the
7applications and requests for completeness and shall compile
8the requests in reports to be filed with the General Assembly.
9The State Board shall file reports outlining the waivers
10requested by eligible applicants and appeals by eligible
11applicants of requests disapproved by the State Board with the
12Senate and the House of Representatives before each March 1 and
13October 1. The General Assembly may disapprove the report of
14the State Board in whole or in part within 60 calendar days
15after each house of the General Assembly next convenes after
16the report is filed by adoption of a resolution by a record
17vote of the majority of members elected in each house. If the
18General Assembly fails to disapprove any waiver request or
19appealed request within such 60 day period, the waiver or
20modification shall be deemed granted. Any resolution adopted by
21the General Assembly disapproving a report of the State Board
22in whole or in part shall be binding on the State Board.
23 (e) An approved waiver or modification (except a waiver
24from or modification to a physical education mandate) may
25remain in effect for a period not to exceed 5 school years and
26may be renewed upon application by the eligible applicant.

SB2196- 45 -LRB100 12499 RPS 25458 b
1However, such waiver or modification may be changed within that
25-year period by a board or regional superintendent of schools
3applying on behalf of schools or programs operated by the
4regional office of education following the procedure as set
5forth in this Section for the initial waiver or modification
6request. If neither the State Board of Education nor the
7General Assembly disapproves, the change is deemed granted.
8 An approved waiver from or modification to a physical
9education mandate may remain in effect for a period not to
10exceed 2 school years and may be renewed no more than 2 times
11upon application by the eligible applicant. An approved waiver
12from or modification to a physical education mandate may be
13changed within the 2-year period by the board or regional
14superintendent of schools, whichever is applicable, following
15the procedure set forth in this Section for the initial waiver
16or modification request. If neither the State Board of
17Education nor the General Assembly disapproves, the change is
18deemed granted.
19 (f) (Blank).
20(Source: P.A. 98-513, eff. 1-1-14; 98-739, eff. 7-16-14;
2198-1155, eff. 1-9-15; 99-78, eff. 7-20-15.)
22 (105 ILCS 5/10-22.34c)
23 Sec. 10-22.34c. Third party non-instructional services.
24Notwithstanding any other law of this State, nothing in this
25Code prevents a (a) A board of education from entering may

SB2196- 46 -LRB100 12499 RPS 25458 b
1enter into a contract with a third party for non-instructional
2services currently performed by any employee or bargaining unit
3member or from laying lay off those educational support
4personnel employees upon 30 90 days written notice to the
5affected employees. , provided that:
6 (1) a contract must not be entered into and become
7 effective during the term of a collective bargaining
8 agreement, as that term is set forth in the agreement,
9 covering any employees who perform the non-instructional
10 services;
11 (2) a contract may only take effect upon the expiration
12 of an existing collective bargaining agreement;
13 (3) any third party that submits a bid to perform the
14 non-instructional services shall provide the following:
15 (A) evidence of liability insurance in scope and
16 amount equivalent to the liability insurance provided
17 by the school board pursuant to Section 10-22.3 of this
18 Code;
19 (B) a benefits package for the third party's
20 employees who will perform the non-instructional
21 services comparable to the benefits package provided
22 to school board employees who perform those services;
23 (C) a list of the number of employees who will
24 provide the non-instructional services, the job
25 classifications of those employees, and the wages the
26 third party will pay those employees;

SB2196- 47 -LRB100 12499 RPS 25458 b
1 (D) a minimum 3-year cost projection, using
2 generally accepted accounting principles and which the
3 third party is prohibited from increasing if the bid is
4 accepted by the school board, for each and every
5 expenditure category and account for performing the
6 non-instructional services;
7 (E) composite information about the criminal and
8 disciplinary records, including alcohol or other
9 substance abuse, Department of Children and Family
10 Services complaints and investigations, traffic
11 violations, and license revocations or any other
12 licensure problems, of any employees who may perform
13 the non-instructional services, provided that the
14 individual names and other identifying information of
15 employees need not be provided with the submission of
16 the bid, but must be made available upon request of the
17 school board; and
18 (F) an affidavit, notarized by the president or
19 chief executive officer of the third party, that each
20 of its employees has completed a criminal background
21 check as required by Section 10-21.9 of this Code
22 within 3 months prior to submission of the bid,
23 provided that the results of such background checks
24 need not be provided with the submission of the bid,
25 but must be made available upon request of the school
26 board;

SB2196- 48 -LRB100 12499 RPS 25458 b
1 (4) a contract must not be entered into unless the
2 school board provides a cost comparison, using generally
3 accepted accounting principles, of each and every
4 expenditure category and account that the school board
5 projects it would incur over the term of the contract if it
6 continued to perform the non-instructional services using
7 its own employees with each and every expenditure category
8 and account that is projected a third party would incur if
9 a third party performed the non-instructional services;
10 (5) review and consideration of all bids by third
11 parties to perform the non-instructional services shall
12 take place in open session of a regularly scheduled school
13 board meeting, unless the exclusive bargaining
14 representative of the employees who perform the
15 non-instructional services, if any such exclusive
16 bargaining representative exists, agrees in writing that
17 such review and consideration can take place in open
18 session at a specially scheduled school board meeting;
19 (6) a minimum of one public hearing, conducted by the
20 school board prior to a regularly scheduled school board
21 meeting, to discuss the school board's proposal to contract
22 with a third party to perform the non-instructional
23 services must be held before the school board may enter
24 into such a contract; the school board must provide notice
25 to the public of the date, time, and location of the first
26 public hearing on or before the initial date that bids to

SB2196- 49 -LRB100 12499 RPS 25458 b
1 provide the non-instructional services are solicited or a
2 minimum of 30 days prior to entering into such a contract,
3 whichever provides a greater period of notice;
4 (7) a contract shall contain provisions requiring the
5 contractor to offer available employee positions pursuant
6 to the contract to qualified school district employees
7 whose employment is terminated because of the contract; and
8 (8) a contract shall contain provisions requiring the
9 contractor to comply with a policy of nondiscrimination and
10 equal employment opportunity for all persons and to take
11 affirmative steps to provide equal opportunity for all
12 persons.
13 (b) Notwithstanding subsection (a) of this Section, a board
14of education may enter into a contract, of no longer than 3
15months in duration, with a third party for non-instructional
16services currently performed by an employee or bargaining unit
17member for the purpose of augmenting the current workforce in
18an emergency situation that threatens the safety or health of
19the school district's students or staff, provided that the
20school board meets all of its obligations under the Illinois
21Educational Labor Relations Act.
22 (c) The changes to this Section made by this amendatory Act
23of the 95th General Assembly are not applicable to
24non-instructional services of a school district that on the
25effective date of this amendatory Act of the 95th General
26Assembly are performed for the school district by a third

SB2196- 50 -LRB100 12499 RPS 25458 b
1party.
2(Source: P.A. 95-241, eff. 8-17-07; 96-328, eff. 8-11-09.)
3 (105 ILCS 5/11E-135)
4 Sec. 11E-135. Incentives. For districts reorganizing under
5this Article and for a district or districts that annex all of
6the territory of one or more entire other school districts in
7accordance with Article 7 of this Code, the following payments
8shall be made from appropriations made for these purposes:
9 (a)(1) For a combined school district, as defined in
10Section 11E-20 of this Code, or for a unit district, as defined
11in Section 11E-25 of this Code, for its first year of
12existence, the general State aid and supplemental general State
13aid calculated under Section 18-8.05 of this Code shall be
14computed for the new district and for the previously existing
15districts for which property is totally included within the new
16district. If the computation on the basis of the previously
17existing districts is greater, a supplementary payment equal to
18the difference shall be made for the first 4 years of existence
19of the new district.
20 (2) For a school district that annexes all of the territory
21of one or more entire other school districts as defined in
22Article 7 of this Code, for the first year during which the
23change of boundaries attributable to the annexation becomes
24effective for all purposes, as determined under Section 7-9 of
25this Code, the general State aid and supplemental general State

SB2196- 51 -LRB100 12499 RPS 25458 b
1aid calculated under Section 18-8.05 of this Code shall be
2computed for the annexing district as constituted after the
3annexation and for the annexing and each annexed district as
4constituted prior to the annexation; and if the computation on
5the basis of the annexing and annexed districts as constituted
6prior to the annexation is greater, then a supplementary
7payment equal to the difference shall be made for the first 4
8years of existence of the annexing school district as
9constituted upon the annexation.
10 (3) For 2 or more school districts that annex all of the
11territory of one or more entire other school districts, as
12defined in Article 7 of this Code, for the first year during
13which the change of boundaries attributable to the annexation
14becomes effective for all purposes, as determined under Section
157-9 of this Code, the general State aid and supplemental
16general State aid calculated under Section 18-8.05 of this Code
17shall be computed for each annexing district as constituted
18after the annexation and for each annexing and annexed district
19as constituted prior to the annexation; and if the aggregate of
20the general State aid and supplemental general State aid as so
21computed for the annexing districts as constituted after the
22annexation is less than the aggregate of the general State aid
23and supplemental general State aid as so computed for the
24annexing and annexed districts, as constituted prior to the
25annexation, then a supplementary payment equal to the
26difference shall be made and allocated between or among the

SB2196- 52 -LRB100 12499 RPS 25458 b
1annexing districts, as constituted upon the annexation, for the
2first 4 years of their existence. The total difference payment
3shall be allocated between or among the annexing districts in
4the same ratio as the pupil enrollment from that portion of the
5annexed district or districts that is annexed to each annexing
6district bears to the total pupil enrollment from the entire
7annexed district or districts, as such pupil enrollment is
8determined for the school year last ending prior to the date
9when the change of boundaries attributable to the annexation
10becomes effective for all purposes. The amount of the total
11difference payment and the amount thereof to be allocated to
12the annexing districts shall be computed by the State Board of
13Education on the basis of pupil enrollment and other data that
14shall be certified to the State Board of Education, on forms
15that it shall provide for that purpose, by the regional
16superintendent of schools for each educational service region
17in which the annexing and annexed districts are located.
18 (4) For a school district conversion, as defined in Section
1911E-15 of this Code, or a multi-unit conversion, as defined in
20subsection (b) of Section 11E-30 of this Code, if in their
21first year of existence the newly created elementary districts
22and the newly created high school district, from a school
23district conversion, or the newly created elementary district
24or districts and newly created combined high school - unit
25district, from a multi-unit conversion, qualify for less
26general State aid under Section 18-8.05 of this Code than would

SB2196- 53 -LRB100 12499 RPS 25458 b
1have been payable under Section 18-8.05 for that same year to
2the previously existing districts, then a supplementary
3payment equal to that difference shall be made for the first 4
4years of existence of the newly created districts. The
5aggregate amount of each supplementary payment shall be
6allocated among the newly created districts in the proportion
7that the deemed pupil enrollment in each district during its
8first year of existence bears to the actual aggregate pupil
9enrollment in all of the districts during their first year of
10existence. For purposes of each allocation:
11 (A) the deemed pupil enrollment of the newly created
12 high school district from a school district conversion
13 shall be an amount equal to its actual pupil enrollment for
14 its first year of existence multiplied by 1.25;
15 (B) the deemed pupil enrollment of each newly created
16 elementary district from a school district conversion
17 shall be an amount equal to its actual pupil enrollment for
18 its first year of existence reduced by an amount equal to
19 the product obtained when the amount by which the newly
20 created high school district's deemed pupil enrollment
21 exceeds its actual pupil enrollment for its first year of
22 existence is multiplied by a fraction, the numerator of
23 which is the actual pupil enrollment of the newly created
24 elementary district for its first year of existence and the
25 denominator of which is the actual aggregate pupil
26 enrollment of all of the newly created elementary districts

SB2196- 54 -LRB100 12499 RPS 25458 b
1 for their first year of existence;
2 (C) the deemed high school pupil enrollment of the
3 newly created combined high school - unit district from a
4 multi-unit conversion shall be an amount equal to its
5 actual grades 9 through 12 pupil enrollment for its first
6 year of existence multiplied by 1.25; and
7 (D) the deemed elementary pupil enrollment of each
8 newly created district from a multi-unit conversion shall
9 be an amount equal to each district's actual grade K
10 through 8 pupil enrollment for its first year of existence,
11 reduced by an amount equal to the product obtained when the
12 amount by which the newly created combined high school -
13 unit district's deemed high school pupil enrollment
14 exceeds its actual grade 9 through 12 pupil enrollment for
15 its first year of existence is multiplied by a fraction,
16 the numerator of which is the actual grade K through 8
17 pupil enrollment of each newly created district for its
18 first year of existence and the denominator of which is the
19 actual aggregate grade K through 8 pupil enrollment of all
20 such newly created districts for their first year of
21 existence.
22 The aggregate amount of each supplementary payment under
23this subdivision (4) and the amount thereof to be allocated to
24the newly created districts shall be computed by the State
25Board of Education on the basis of pupil enrollment and other
26data, which shall be certified to the State Board of Education,

SB2196- 55 -LRB100 12499 RPS 25458 b
1on forms that it shall provide for that purpose, by the
2regional superintendent of schools for each educational
3service region in which the newly created districts are
4located.
5 (5) For a partial elementary unit district, as defined in
6subsection (a) or (c) of Section 11E-30 of this Code, if, in
7the first year of existence, the newly created partial
8elementary unit district qualifies for less general State aid
9and supplemental general State aid under Section 18-8.05 of
10this Code than would have been payable under that Section for
11that same year to the previously existing districts that formed
12the partial elementary unit district, then a supplementary
13payment equal to that difference shall be made to the partial
14elementary unit district for the first 4 years of existence of
15that newly created district.
16 (6) For an elementary opt-in, as described in subsection
17(d) of Section 11E-30 of this Code, the general State aid
18difference shall be computed in accordance with paragraph (5)
19of this subsection (a) as if the elementary opt-in was included
20in an optional elementary unit district at the optional
21elementary unit district's original effective date. If the
22calculation in this paragraph (6) is less than that calculated
23in paragraph (5) of this subsection (a) at the optional
24elementary unit district's original effective date, then no
25adjustments may be made. If the calculation in this paragraph
26(6) is more than that calculated in paragraph (5) of this

SB2196- 56 -LRB100 12499 RPS 25458 b
1subsection (a) at the optional elementary unit district's
2original effective date, then the excess must be paid as
3follows:
4 (A) If the effective date for the elementary opt-in is
5 one year after the effective date for the optional
6 elementary unit district, 100% of the calculated excess
7 shall be paid to the optional elementary unit district in
8 each of the first 4 years after the effective date of the
9 elementary opt-in.
10 (B) If the effective date for the elementary opt-in is
11 2 years after the effective date for the optional
12 elementary unit district, 75% of the calculated excess
13 shall be paid to the optional elementary unit district in
14 each of the first 4 years after the effective date of the
15 elementary opt-in.
16 (C) If the effective date for the elementary opt-in is
17 3 years after the effective date for the optional
18 elementary unit district, 50% of the calculated excess
19 shall be paid to the optional elementary unit district in
20 each of the first 4 years after the effective date of the
21 elementary opt-in.
22 (D) If the effective date for the elementary opt-in is
23 4 years after the effective date for the optional
24 elementary unit district, 25% of the calculated excess
25 shall be paid to the optional elementary unit district in
26 each of the first 4 years after the effective date of the

SB2196- 57 -LRB100 12499 RPS 25458 b
1 elementary opt-in.
2 (E) If the effective date for the elementary opt-in is
3 5 years after the effective date for the optional
4 elementary unit district, the optional elementary unit
5 district is not eligible for any additional incentives due
6 to the elementary opt-in.
7 (6.5) For a school district that annexes territory detached
8from another school district whereby the enrollment of the
9annexing district increases by 90% or more as a result of the
10annexation, for the first year during which the change of
11boundaries attributable to the annexation becomes effective
12for all purposes as determined under Section 7-9 of this Code,
13the general State aid and supplemental general State aid
14calculated under this Section shall be computed for the
15district gaining territory and the district losing territory as
16constituted after the annexation and for the same districts as
17constituted prior to the annexation; and if the aggregate of
18the general State aid and supplemental general State aid as so
19computed for the district gaining territory and the district
20losing territory as constituted after the annexation is less
21than the aggregate of the general State aid and supplemental
22general State aid as so computed for the district gaining
23territory and the district losing territory as constituted
24prior to the annexation, then a supplementary payment shall be
25made to the annexing district for the first 4 years of
26existence after the annexation, equal to the difference

SB2196- 58 -LRB100 12499 RPS 25458 b
1multiplied by the ratio of student enrollment in the territory
2detached to the total student enrollment in the district losing
3territory for the year prior to the effective date of the
4annexation. The amount of the total difference and the
5proportion paid to the annexing district shall be computed by
6the State Board of Education on the basis of pupil enrollment
7and other data that must be submitted to the State Board of
8Education in accordance with Section 7-14A of this Code. The
9changes to this Section made by Public Act 95-707 are intended
10to be retroactive and applicable to any annexation taking
11effect on or after July 1, 2004. For annexations that are
12eligible for payments under this paragraph (6.5) and that are
13effective on or after July 1, 2004, but before January 11, 2008
14(the effective date of Public Act 95-707), the first required
15yearly payment under this paragraph (6.5) shall be paid in the
16fiscal year of January 11, 2008 (the effective date of Public
17Act 95-707). Subsequent required yearly payments shall be paid
18in subsequent fiscal years until the payment obligation under
19this paragraph (6.5) is complete.
20 (7) Claims for financial assistance under this subsection
21(a) may not be recomputed except as expressly provided under
22Section 18-8.05 of this Code.
23 (8) Any supplementary payment made under this subsection
24(a) must be treated as separate from all other payments made
25pursuant to Section 18-8.05 of this Code.
26 (b)(1) After the formation of a combined school district,

SB2196- 59 -LRB100 12499 RPS 25458 b
1as defined in Section 11E-20 of this Code, or a unit district,
2as defined in Section 11E-25 of this Code, a computation shall
3be made to determine the difference between the salaries
4effective in each of the previously existing districts on June
530, prior to the creation of the new district. For the first 4
6years after the formation of the new district, a supplementary
7State aid reimbursement shall be paid to the new district equal
8to the difference between the sum of the salaries earned by
9each of the certificated members of the new district, while
10employed in one of the previously existing districts during the
11year immediately preceding the formation of the new district,
12and the sum of the salaries those certificated members would
13have been paid during the year immediately prior to the
14formation of the new district if placed on the salary schedule
15of the previously existing district with the highest salary
16schedule.
17 (2) After the territory of one or more school districts is
18annexed by one or more other school districts as defined in
19Article 7 of this Code, a computation shall be made to
20determine the difference between the salaries effective in each
21annexed district and in the annexing district or districts as
22they were each constituted on June 30 preceding the date when
23the change of boundaries attributable to the annexation became
24effective for all purposes, as determined under Section 7-9 of
25this Code. For the first 4 years after the annexation, a
26supplementary State aid reimbursement shall be paid to each

SB2196- 60 -LRB100 12499 RPS 25458 b
1annexing district as constituted after the annexation equal to
2the difference between the sum of the salaries earned by each
3of the certificated members of the annexing district as
4constituted after the annexation, while employed in an annexed
5or annexing district during the year immediately preceding the
6annexation, and the sum of the salaries those certificated
7members would have been paid during the immediately preceding
8year if placed on the salary schedule of whichever of the
9annexing or annexed districts had the highest salary schedule
10during the immediately preceding year.
11 (3) For each new high school district formed under a school
12district conversion, as defined in Section 11E-15 of this Code,
13the State shall make a supplementary payment for 4 years equal
14to the difference between the sum of the salaries earned by
15each certified member of the new high school district, while
16employed in one of the previously existing districts, and the
17sum of the salaries those certified members would have been
18paid if placed on the salary schedule of the previously
19existing district with the highest salary schedule.
20 (4) For each newly created partial elementary unit
21district, the State shall make a supplementary payment for 4
22years equal to the difference between the sum of the salaries
23earned by each certified member of the newly created partial
24elementary unit district, while employed in one of the
25previously existing districts that formed the partial
26elementary unit district, and the sum of the salaries those

SB2196- 61 -LRB100 12499 RPS 25458 b
1certified members would have been paid if placed on the salary
2schedule of the previously existing district with the highest
3salary schedule. The salary schedules used in the calculation
4shall be those in effect in the previously existing districts
5for the school year prior to the creation of the new partial
6elementary unit district.
7 (5) For an elementary district opt-in, as described in
8subsection (d) of Section 11E-30 of this Code, the salary
9difference incentive shall be computed in accordance with
10paragraph (4) of this subsection (b) as if the opted-in
11elementary district was included in the optional elementary
12unit district at the optional elementary unit district's
13original effective date. If the calculation in this paragraph
14(5) is less than that calculated in paragraph (4) of this
15subsection (b) at the optional elementary unit district's
16original effective date, then no adjustments may be made. If
17the calculation in this paragraph (5) is more than that
18calculated in paragraph (4) of this subsection (b) at the
19optional elementary unit district's original effective date,
20then the excess must be paid as follows:
21 (A) If the effective date for the elementary opt-in is
22 one year after the effective date for the optional
23 elementary unit district, 100% of the calculated excess
24 shall be paid to the optional elementary unit district in
25 each of the first 4 years after the effective date of the
26 elementary opt-in.

SB2196- 62 -LRB100 12499 RPS 25458 b
1 (B) If the effective date for the elementary opt-in is
2 2 years after the effective date for the optional
3 elementary unit district, 75% 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 (C) If the effective date for the elementary opt-in is
8 3 years after the effective date for the optional
9 elementary unit district, 50% 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 (D) If the effective date for the elementary opt-in is
14 4 years after the effective date for the partial elementary
15 unit district, 25% of the calculated excess shall be paid
16 to the optional elementary unit district in each of the
17 first 4 years after the effective date of the elementary
18 opt-in.
19 (E) If the effective date for the elementary opt-in is
20 5 years after the effective date for the optional
21 elementary unit district, the optional elementary unit
22 district is not eligible for any additional incentives due
23 to the elementary opt-in.
24 (5.5) After the formation of a cooperative high school by 2
25or more school districts under Section 10-22.22c of this Code,
26a computation shall be made to determine the difference between

SB2196- 63 -LRB100 12499 RPS 25458 b
1the salaries effective in each of the previously existing high
2schools on June 30 prior to the formation of the cooperative
3high school. For the first 4 years after the formation of the
4cooperative high school, a supplementary State aid
5reimbursement shall be paid to the cooperative high school
6equal to the difference between the sum of the salaries earned
7by each of the certificated members of the cooperative high
8school while employed in one of the previously existing high
9schools during the year immediately preceding the formation of
10the cooperative high school and the sum of the salaries those
11certificated members would have been paid during the year
12immediately prior to the formation of the cooperative high
13school if placed on the salary schedule of the previously
14existing high school with the highest salary schedule.
15 (5.10) After the annexation of territory detached from
16another school district whereby the enrollment of the annexing
17district increases by 90% or more as a result of the
18annexation, a computation shall be made to determine the
19difference between the salaries effective in the district
20gaining territory and the district losing territory as they
21each were constituted on June 30 preceding the date when the
22change 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 the
26annexing district equal to the difference between the sum of

SB2196- 64 -LRB100 12499 RPS 25458 b
1the salaries earned by each of the certificated members of the
2annexing district as constituted after the annexation while
3employed in the district gaining territory or the district
4losing territory during the year immediately preceding the
5annexation and the sum of the salaries those certificated
6members would have been paid during such immediately preceding
7year if placed on the salary schedule of whichever of the
8district gaining territory or district losing territory had the
9highest salary schedule during the immediately preceding year.
10To be eligible for supplementary State aid reimbursement under
11this Section, the intergovernmental agreement to be submitted
12pursuant to Section 7-14A of this Code must show that staff
13members were transferred from the control of the district
14losing territory to the control of the district gaining
15territory in the annexation. The changes to this Section made
16by Public Act 95-707 are intended to be retroactive and
17applicable to any annexation taking effect on or after July 1,
182004. For annexations that are eligible for payments under this
19paragraph (5.10) and that are effective on or after July 1,
202004, but before January 11, 2008 (the effective date of Public
21Act 95-707), the first required yearly payment under this
22paragraph (5.10) shall be paid in the fiscal year of January
2311, 2008 (the effective date of Public Act 95-707). Subsequent
24required yearly payments shall be paid in subsequent fiscal
25years until the payment obligation under this paragraph (5.10)
26is complete.

SB2196- 65 -LRB100 12499 RPS 25458 b
1 (5.15) After the deactivation of a school facility in
2accordance with Section 10-22.22b of this Code, a computation
3shall be made to determine the difference between the salaries
4effective in the sending school district and each receiving
5school district on June 30 prior to the deactivation of the
6school facility. For the lesser of the first 4 years after the
7deactivation of the school facility or the length of the
8deactivation agreement, including any renewals of the original
9deactivation agreement, a supplementary State aid
10reimbursement shall be paid to each receiving district equal to
11the difference between the sum of the salaries earned by each
12of the certificated members transferred to that receiving
13district as a result of the deactivation while employed in the
14sending district during the year immediately preceding the
15deactivation and the sum of the salaries those certificated
16members would have been paid during the year immediately
17preceding the deactivation if placed on the salary schedule of
18the sending or receiving district with the highest salary
19schedule.
20 (6) The supplementary State aid reimbursement under this
21subsection (b) shall be treated as separate from all other
22payments made pursuant to Section 18-8.05 of this Code. In the
23case of the formation of a new district or cooperative high
24school or a deactivation, reimbursement shall begin during the
25first year of operation of the new district or cooperative high
26school or the first year of the deactivation, and in the case

SB2196- 66 -LRB100 12499 RPS 25458 b
1of an annexation of the territory of one or more school
2districts by one or more other school districts or the
3annexation of territory detached from a school district whereby
4the enrollment of the annexing district increases by 90% or
5more as a result of the annexation, reimbursement shall begin
6during the first year when the change in boundaries
7attributable to the annexation becomes effective for all
8purposes as determined pursuant to Section 7-9 of this Code,
9except that for an annexation of territory detached from a
10school district that is effective on or after July 1, 2004, but
11before January 11, 2008 (the effective date of Public Act
1295-707), whereby the enrollment of the annexing district
13increases by 90% or more as a result of the annexation,
14reimbursement shall begin during the fiscal year of January 11,
152008 (the effective date of Public Act 95-707). Each year that
16the new, annexing, or receiving district or cooperative high
17school, as the case may be, is entitled to receive
18reimbursement, the number of eligible certified members who are
19employed on October 1 in the district or cooperative high
20school shall be certified to the State Board of Education on
21prescribed forms by October 15 and payment shall be made on or
22before November 15 of that year.
23 (7) Notwithstanding any other provision to the contrary in
24this Section, any reorganized district may maintain 2 separate
25salary schedules until the next collective bargaining
26negotiation.

SB2196- 67 -LRB100 12499 RPS 25458 b
1 (c)(1) For the first year after the formation of a combined
2school district, as defined in Section 11E-20 of this Code or a
3unit district, as defined in Section 11E-25 of this Code, a
4computation shall be made totaling each previously existing
5district's audited fund balances in the educational fund,
6working cash fund, operations and maintenance fund, and
7transportation fund for the year ending June 30 prior to the
8referendum for the creation of the new district. The new
9district shall be paid supplementary State aid equal to the sum
10of the differences between the deficit of the previously
11existing district with the smallest deficit and the deficits of
12each of the other previously existing districts.
13 (2) For the first year after the annexation of all of the
14territory of one or more entire school districts by another
15school district, as defined in Article 7 of this Code,
16computations shall be made, for the year ending June 30 prior
17to the date that the change of boundaries attributable to the
18annexation is allowed by the affirmative decision issued by the
19regional board of school trustees under Section 7-6 of this
20Code, notwithstanding any effort to seek administrative review
21of the decision, totaling the annexing district's and totaling
22each annexed district's audited fund balances in their
23respective educational, working cash, operations and
24maintenance, and transportation funds. The annexing district
25as constituted after the annexation shall be paid supplementary
26State aid equal to the sum of the differences between the

SB2196- 68 -LRB100 12499 RPS 25458 b
1deficit of whichever of the annexing or annexed districts as
2constituted prior to the annexation had the smallest deficit
3and the deficits of each of the other districts as constituted
4prior to the annexation.
5 (3) For the first year after the annexation of all of the
6territory of one or more entire school districts by 2 or more
7other school districts, as defined by Article 7 of this Code,
8computations shall be made, for the year ending June 30 prior
9to the date that the change of boundaries attributable to the
10annexation is allowed by the affirmative decision of the
11regional board of school trustees under Section 7-6 of this
12Code, notwithstanding any action for administrative review of
13the decision, totaling each annexing and annexed district's
14audited fund balances in their respective educational, working
15cash, operations and maintenance, and transportation funds.
16The annexing districts as constituted after the annexation
17shall be paid supplementary State aid, allocated as provided in
18this paragraph (3), in an aggregate amount equal to the sum of
19the differences between the deficit of whichever of the
20annexing or annexed districts as constituted prior to the
21annexation had the smallest deficit and the deficits of each of
22the other districts as constituted prior to the annexation. The
23aggregate amount of the supplementary State aid payable under
24this paragraph (3) shall be allocated between or among the
25annexing districts as follows:
26 (A) the regional superintendent of schools for each

SB2196- 69 -LRB100 12499 RPS 25458 b
1 educational service region in which an annexed district is
2 located prior to the annexation shall certify to the State
3 Board of Education, on forms that it shall provide for that
4 purpose, the value of all taxable property in each annexed
5 district, as last equalized or assessed by the Department
6 of Revenue prior to the annexation, and the equalized
7 assessed value of each part of the annexed district that
8 was annexed to or included as a part of an annexing
9 district;
10 (B) using equalized assessed values as certified by the
11 regional superintendent of schools under clause (A) of this
12 paragraph (3), the combined audited fund balance deficit of
13 each annexed district as determined under this Section
14 shall be apportioned between or among the annexing
15 districts in the same ratio as the equalized assessed value
16 of that part of the annexed district that was annexed to or
17 included as a part of an annexing district bears to the
18 total equalized assessed value of the annexed district; and
19 (C) the aggregate supplementary State aid payment
20 under this paragraph (3) shall be allocated between or
21 among, and shall be paid to, the annexing districts in the
22 same ratio as the sum of the combined audited fund balance
23 deficit of each annexing district as constituted prior to
24 the annexation, plus all combined audited fund balance
25 deficit amounts apportioned to that annexing district
26 under clause (B) of this subsection, bears to the aggregate

SB2196- 70 -LRB100 12499 RPS 25458 b
1 of the combined audited fund balance deficits of all of the
2 annexing and annexed districts as constituted prior to the
3 annexation.
4 (4) For the new elementary districts and new high school
5district formed through a school district conversion, as
6defined in Section 11E-15 of this Code or the new elementary
7district or districts and new combined high school - unit
8district formed through a multi-unit conversion, as defined in
9subsection (b) of Section 11E-30 of this Code, a computation
10shall be made totaling each previously existing district's
11audited fund balances in the educational fund, working cash
12fund, operations and maintenance fund, and transportation fund
13for the year ending June 30 prior to the referendum
14establishing the new districts. In the first year of the new
15districts, the State shall make a one-time supplementary
16payment equal to the sum of the differences between the deficit
17of the previously existing district with the smallest deficit
18and the deficits of each of the other previously existing
19districts. A district with a combined balance among the 4 funds
20that is positive shall be considered to have a deficit of zero.
21The supplementary payment shall be allocated among the newly
22formed high school and elementary districts in the manner
23provided by the petition for the formation of the districts, in
24the form in which the petition is approved by the regional
25superintendent of schools or State Superintendent of Education
26under Section 11E-50 of this Code.

SB2196- 71 -LRB100 12499 RPS 25458 b
1 (5) For each newly created partial elementary unit
2district, as defined in subsection (a) or (c) of Section 11E-30
3of this Code, a computation shall be made totaling the audited
4fund balances of each previously existing district that formed
5the new partial elementary unit district in the educational
6fund, working cash fund, operations and maintenance fund, and
7transportation fund for the year ending June 30 prior to the
8referendum for the formation of the partial elementary unit
9district. In the first year of the new partial elementary unit
10district, the State shall make a one-time supplementary payment
11to the new district equal to the sum of the differences between
12the deficit of the previously existing district with the
13smallest deficit and the deficits of each of the other
14previously existing districts. A district with a combined
15balance among the 4 funds that is positive shall be considered
16to have a deficit of zero.
17 (6) For an elementary opt-in as defined in subsection (d)
18of Section 11E-30 of this Code, the deficit fund balance
19incentive shall be computed in accordance with paragraph (5) of
20this subsection (c) as if the opted-in elementary was included
21in the optional elementary unit district at the optional
22elementary unit district's original effective date. If the
23calculation in this paragraph (6) is less than that calculated
24in paragraph (5) of this subsection (c) at the optional
25elementary unit district's original effective date, then no
26adjustments may be made. If the calculation in this paragraph

SB2196- 72 -LRB100 12499 RPS 25458 b
1(6) is more than that calculated in paragraph (5) of this
2subsection (c) at the optional elementary unit district's
3original effective date, then the excess must be paid as
4follows:
5 (A) If the effective date for the elementary opt-in is
6 one year after the effective date for the optional
7 elementary unit district, 100% of the calculated excess
8 shall be paid to the optional elementary unit district in
9 the first year after the effective date of the elementary
10 opt-in.
11 (B) If the effective date for the elementary opt-in is
12 2 years after the effective date for the optional
13 elementary unit district, 75% of the calculated excess
14 shall be paid to the optional elementary unit district in
15 the first year after the effective date of the elementary
16 opt-in.
17 (C) If the effective date for the elementary opt-in is
18 3 years after the effective date for the optional
19 elementary unit district, 50% of the calculated excess
20 shall be paid to the optional elementary unit district in
21 the first year after the effective date of the elementary
22 opt-in.
23 (D) If the effective date for the elementary opt-in is
24 4 years after the effective date for the optional
25 elementary unit district, 25% of the calculated excess
26 shall be paid to the optional elementary unit district in

SB2196- 73 -LRB100 12499 RPS 25458 b
1 the first year after the effective date of the elementary
2 opt-in.
3 (E) If the effective date for the elementary opt-in is
4 5 years after the effective date for the optional
5 elementary unit district, the optional elementary unit
6 district is not eligible for any additional incentives due
7 to the elementary opt-in.
8 (6.5) For the first year after the annexation of territory
9detached from another school district whereby the enrollment of
10the annexing district increases by 90% or more as a result of
11the annexation, a computation shall be made totaling the
12audited fund balances of the district gaining territory and the
13audited fund balances of the district losing territory in the
14educational fund, working cash fund, operations and
15maintenance fund, and transportation fund for the year ending
16June 30 prior to the date that the change of boundaries
17attributable to the annexation is allowed by the affirmative
18decision of the regional board of school trustees under Section
197-6 of this Code, notwithstanding any action for administrative
20review of the decision. The annexing district as constituted
21after the annexation shall be paid supplementary State aid
22equal to the difference between the deficit of whichever
23district included in this calculation as constituted prior to
24the annexation had the smallest deficit and the deficit of each
25other district included in this calculation as constituted
26prior to the annexation, multiplied by the ratio of equalized

SB2196- 74 -LRB100 12499 RPS 25458 b
1assessed value of the territory detached to the total equalized
2assessed value of the district losing territory. The regional
3superintendent of schools for the educational service region in
4which a district losing territory is located prior to the
5annexation shall certify to the State Board of Education the
6value of all taxable property in the district losing territory
7and the value of all taxable property in the territory being
8detached, as last equalized or assessed by the Department of
9Revenue prior to the annexation. To be eligible for
10supplementary State aid reimbursement under this Section, the
11intergovernmental agreement to be submitted pursuant to
12Section 7-14A of this Code must show that fund balances were
13transferred from the district losing territory to the district
14gaining territory in the annexation. The changes to this
15Section made by Public Act 95-707 are intended to be
16retroactive and applicable to any annexation taking effect on
17or after July 1, 2004. For annexations that are eligible for
18payments under this paragraph (6.5) and that are effective on
19or after July 1, 2004, but before January 11, 2008 (the
20effective date of Public Act 95-707), the required payment
21under this paragraph (6.5) shall be paid in the fiscal year of
22January 11, 2008 (the effective date of Public Act 95-707).
23 (7) For purposes of any calculation required under
24paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
25subsection (c), a district with a combined fund balance that is
26positive shall be considered to have a deficit of zero. For

SB2196- 75 -LRB100 12499 RPS 25458 b
1purposes of determining each district's audited fund balances
2in its educational fund, working cash fund, operations and
3maintenance fund, and transportation fund for the specified
4year ending June 30, as provided in paragraphs (1), (2), (3),
5(4), (5), (6), and (6.5) of this subsection (c), the balance of
6each fund shall be deemed decreased by an amount equal to the
7amount of the annual property tax theretofore levied in the
8fund by the district for collection and payment to the district
9during the calendar year in which the June 30 fell, but only to
10the extent that the tax so levied in the fund actually was
11received by the district on or before or comprised a part of
12the fund on such June 30. For purposes of determining each
13district's audited fund balances, a calculation shall be made
14for each fund to determine the average for the 3 years prior to
15the specified year ending June 30, as provided in paragraphs
16(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
17of the district's expenditures in the categories "purchased
18services", "supplies and materials", and "capital outlay", as
19those categories are defined in rules of the State Board of
20Education. If this 3-year average is less than the district's
21expenditures in these categories for the specified year ending
22June 30, as provided in paragraphs (1), (2), (3), (4), (5),
23(6), and (6.5) of this subsection (c), then the 3-year average
24shall be used in calculating the amounts payable under this
25Section in place of the amounts shown in these categories for
26the specified year ending June 30, as provided in paragraphs

SB2196- 76 -LRB100 12499 RPS 25458 b
1(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
2Any deficit because of State aid not yet received may not be
3considered in determining the June 30 deficits. The same basis
4of accounting shall be used by all previously existing
5districts and by all annexing or annexed districts, as
6constituted prior to the annexation, in making any computation
7required under paragraphs (1), (2), (3), (4), (5), (6), and
8(6.5) of this subsection (c).
9 (8) The supplementary State aid payments under this
10subsection (c) shall be treated as separate from all other
11payments made pursuant to Section 18-8.05 of this Code.
12 (d)(1) Following the formation of a combined school
13district, as defined in Section 11E-20 of this Code, a new unit
14district, as defined in Section 11E-25 of this Code, a new
15elementary district or districts and a new high school district
16formed through a school district conversion, as defined in
17Section 11E-15 of this Code, a new partial elementary unit
18district, as defined in Section 11E-30 of this Code, or a new
19elementary district or districts formed through a multi-unit
20conversion, as defined in subsection (b) of Section 11E-30 of
21this Code, or the annexation of all of the territory of one or
22more entire school districts by one or more other school
23districts, as defined in Article 7 of this Code, a
24supplementary State aid reimbursement shall be paid for the
25number of school years determined under the following table to
26each new or annexing district equal to the sum of $4,000 for

SB2196- 77 -LRB100 12499 RPS 25458 b
1each certified employee who is employed by the district on a
2full-time basis for the regular term of the school year:
3Reorganized District's RankReorganized District's Rank
4by type of district (unit,in Average Daily Attendance
5high school, elementary)By Quintile
6in Equalized Assessed Value
7Per Pupil by Quintile
83rd, 4th,
91st2ndor 5th
10QuintileQuintileQuintile
11 1st Quintile1 year1 year1 year
12 2nd Quintile1 year2 years2 years
13 3rd Quintile2 years3 years3 years
14 4th Quintile2 years3 years3 years
15 5th Quintile2 years3 years3 years
16The State Board of Education shall make a one-time calculation
17of a reorganized district's quintile ranks. The average daily
18attendance used in this calculation shall be the best 3 months'
19average daily attendance for the district's first year. The
20equalized assessed value per pupil shall be the district's real
21property equalized assessed value used in calculating the
22district's first-year general State aid claim, under Section
2318-8.05 of this Code, divided by the best 3 months' average
24daily attendance.

SB2196- 78 -LRB100 12499 RPS 25458 b
1 No annexing or resulting school district shall be entitled
2to supplementary State aid under this subsection (d) unless the
3district acquires at least 30% of the average daily attendance
4of the district from which the territory is being detached or
5divided.
6 If a district results from multiple reorganizations that
7would otherwise qualify the district for multiple payments
8under this subsection (d) in any year, then the district shall
9receive a single payment only for that year based solely on the
10most recent reorganization.
11 (2) For an elementary opt-in, as defined in subsection (d)
12of Section 11E-30 of this Code, the full-time certified staff
13incentive shall be computed in accordance with paragraph (1) of
14this subsection (d), equal to the sum of $4,000 for each
15certified employee of the elementary district that opts-in who
16is employed by the optional elementary unit district on a
17full-time basis for the regular term of the school year. The
18calculation from this paragraph (2) must be paid as follows:
19 (A) If the effective date for the elementary opt-in is
20 one year after the effective date for the optional
21 elementary unit district, 100% of the amount calculated in
22 this paragraph (2) shall be paid to the optional elementary
23 unit district for the number of years calculated in
24 paragraph (1) of this subsection (d) at the optional
25 elementary unit district's original effective date,
26 starting in the second year after the effective date of the

SB2196- 79 -LRB100 12499 RPS 25458 b
1 elementary opt-in.
2 (B) If the effective date for the elementary opt-in is
3 2 years after the effective date for the optional
4 elementary unit district, 75% of the amount calculated in
5 this paragraph (2) shall be paid to the optional elementary
6 unit district for the number of years calculated in
7 paragraph (1) of this subsection (d) at the optional
8 elementary unit district's original effective date,
9 starting in the second year after the effective date of the
10 elementary opt-in.
11 (C) If the effective date for the elementary opt-in is
12 3 years after the effective date for the optional
13 elementary unit district, 50% of the amount calculated in
14 this paragraph (2) shall be paid to the optional elementary
15 unit district for the number of years calculated in
16 paragraph (1) of this subsection (d) at the optional
17 elementary unit district's original effective date,
18 starting in the second year after the effective date of the
19 elementary opt-in.
20 (D) If the effective date for the elementary opt-in is
21 4 years after the effective date for the optional
22 elementary unit district, 25% of the amount calculated in
23 this paragraph (2) shall be paid to the optional elementary
24 unit district for the number of years calculated in
25 paragraph (1) of this subsection (d) at the optional
26 elementary unit district's original effective date,

SB2196- 80 -LRB100 12499 RPS 25458 b
1 starting in the second year after the effective date of the
2 elementary opt-in.
3 (E) If the effective date for the elementary opt-in is
4 5 years after the effective date for the optional
5 elementary unit district, the optional elementary unit
6 district is not eligible for any additional incentives due
7 to the elementary opt-in.
8 (2.5) Following the formation of a cooperative high school
9by 2 or more school districts under Section 10-22.22c of this
10Code, a supplementary State aid reimbursement shall be paid for
113 school years to the cooperative high school equal to the sum
12of $4,000 for each certified employee who is employed by the
13cooperative high school on a full-time basis for the regular
14term of any such school year. If a cooperative high school
15results from multiple agreements that would otherwise qualify
16the cooperative high school for multiple payments under this
17Section in any year, the cooperative high school shall receive
18a single payment for that year based solely on the most recent
19agreement.
20 (2.10) Following the annexation of territory detached from
21another school district whereby the enrollment of the annexing
22district increases 90% or more as a result of the annexation, a
23supplementary State aid reimbursement shall be paid to the
24annexing district equal to the sum of $4,000 for each certified
25employee who is employed by the annexing district on a
26full-time basis and shall be calculated in accordance with

SB2196- 81 -LRB100 12499 RPS 25458 b
1subsection (a) of this Section. To be eligible for
2supplementary State aid reimbursement under this Section, the
3intergovernmental agreement to be submitted pursuant to
4Section 7-14A of this Code must show that certified staff
5members were transferred from the control of the district
6losing territory to the control of the district gaining
7territory in the annexation. The changes to this Section made
8by Public Act 95-707 are intended to be retroactive and
9applicable to any annexation taking effect on or after July 1,
102004. For annexations that are eligible for payments under this
11paragraph (2.10) and that are effective on or after July 1,
122004, but before January 11, 2008 (the effective date of Public
13Act 95-707), the first required yearly payment under this
14paragraph (2.10) shall be paid in the second fiscal year after
15January 11, 2008 (the effective date of Public Act 95-707). Any
16subsequent required yearly payments shall be paid in subsequent
17fiscal years until the payment obligation under this paragraph
18(2.10) is complete.
19 (2.15) Following the deactivation of a school facility in
20accordance with Section 10-22.22b of this Code, a supplementary
21State aid reimbursement shall be paid for the lesser of 3
22school years or the length of the deactivation agreement,
23including any renewals of the original deactivation agreement,
24to each receiving school district equal to the sum of $4,000
25for each certified employee who is employed by that receiving
26district on a full-time basis for the regular term of any such

SB2196- 82 -LRB100 12499 RPS 25458 b
1school year who was originally transferred to the control of
2that receiving district as a result of the deactivation.
3Receiving districts are eligible for payments under this
4paragraph (2.15) based on the certified employees transferred
5to that receiving district as a result of the deactivation and
6are not required to receive at least 30% of the deactivating
7district's average daily attendance as required under
8paragraph (1) of this subsection (d) to be eligible for
9payments.
10 (3) The supplementary State aid reimbursement payable
11under this subsection (d) shall be separate from and in
12addition to all other payments made to the district pursuant to
13any other Section of this Article.
14 (4) During May of each school year for which a
15supplementary State aid reimbursement is to be paid to a new,
16annexing, or receiving school district or cooperative high
17school pursuant to this subsection (d), the school board or
18governing board shall certify to the State Board of Education,
19on forms furnished to the school board or governing board by
20the State Board of Education for purposes of this subsection
21(d), the number of certified employees for which the district
22or cooperative high school is entitled to reimbursement under
23this Section, together with the names, certificate numbers, and
24positions held by the certified employees.
25 (5) Upon certification by the State Board of Education to
26the State Comptroller of the amount of the supplementary State

SB2196- 83 -LRB100 12499 RPS 25458 b
1aid reimbursement to which a school district or cooperative
2high school is entitled under this subsection (d), the State
3Comptroller shall draw his or her warrant upon the State
4Treasurer for the payment thereof to the school district or
5cooperative high school and shall promptly transmit the payment
6to the school district or cooperative high school through the
7appropriate school treasurer.
8(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
995-903, eff. 8-25-08; 96-328, eff. 8-11-09.)".
10 (105 ILCS 5/22-62 new)
11 Sec. 22-62. Discharge of unfunded mandates.
12 (a) School districts may discharge unfunded mandates
13imposed under this Code and applicable implementing rules, with
14the exception of those mandates listed in subsection (b) of
15this Section.
16 (b) School districts shall not be relieved from any of the
17following statutory or regulatory mandates: (1) the Illinois
18Learning Standards established by the State Board of Education;
19(2) accountability measures pursuant to Section 2-3.25a of this
20Code; (3) student achievement on the annual State assessments
21as required by Section 2-3.64a-5 of this Code; (4) provisions
22of the federal Every Student Succeeds Act; (5) mandates
23required to maintain federal grant awards; (6) provisions
24outside of this Code or its implementing rules; (7)
25non-curricular health and safety requirements; (8) mandates

SB2196- 84 -LRB100 12499 RPS 25458 b
1related to civil rights and student access to district
2educational and non-educational programs; and (9) mandates
3contained in Article 24 or 24A of this Code or their
4implementing rules.
5 (c) Before a school district may lawfully discharge an
6unfunded mandate under subsection (a) of this Section, it must
7hold a public hearing on the matter. The school district must
8post information that sets forth the time, date, place, and
9general subject matter of the public hearing on its Internet
10website at least 30 days prior to the hearing. The school
11district must publish a notice of the public hearing at least
1230 days prior to the hearing in a newspaper of general
13circulation within the school district that sets forth the
14time, date, place, and general subject matter of the hearing.
15 (d) A majority vote of the school board is required at a
16regularly scheduled school board meeting to discharge any
17mandates under this Section.
18 (e) The State Board of Education shall submit a report to
19the Governor and General Assembly regarding the participation
20and outcomes of this Section on or before December 15, 2018 and
21annually on or before December 15 thereafter. School districts
22that have discharged mandates under this Section must provide
23any and all data requested by the State Board of Education to
24generate reports under this subsection (e).
25 (f) The State Board of Education may adopt rules necessary
26to implement this Section.

SB2196- 85 -LRB100 12499 RPS 25458 b
1 (105 ILCS 5/27-6) (from Ch. 122, par. 27-6)
2 Sec. 27-6. Courses in physical education required; special
3activities.
4 (a) Pupils enrolled in the public schools and State
5universities engaged in preparing teachers shall be required to
6engage daily during the school day, except on block scheduled
7days for those public schools engaged in block scheduling, in
8courses of physical education for such periods as are
9compatible with the optimum growth and developmental needs of
10individuals at the various age levels except when appropriate
11excuses are submitted to the school by a pupil's parent or
12guardian or by a person licensed under the Medical Practice Act
13of 1987 and except as provided in subsection (b) of this
14Section. A school board may determine the schedule or frequency
15of physical education courses, provided that a pupil engages in
16a course of physical education for a minimum of 3 days per
17week.
18 Special activities in physical education shall be provided
19for pupils whose physical or emotional condition, as determined
20by a person licensed under the Medical Practice Act of 1987,
21prevents their participation in the courses provided for normal
22children.
23 (b) A school board is authorized to excuse pupils enrolled
24in grades 11 and 12 from engaging in physical education courses
25if those pupils request to be excused for any of the following

SB2196- 86 -LRB100 12499 RPS 25458 b
1reasons: (1) for ongoing participation in an interscholastic
2athletic program; (2) to enroll in academic classes which are
3required for admission to an institution of higher learning,
4provided that failure to take such classes will result in the
5pupil being denied admission to the institution of his or her
6choice; or (3) to enroll in academic classes which are required
7for graduation from high school, provided that failure to take
8such classes will result in the pupil being unable to graduate.
9A school board may also excuse pupils in grades 9 through 12
10enrolled in a marching band program for credit from engaging in
11physical education courses if those pupils request to be
12excused for ongoing participation in such marching band
13program. A school board may also, on a case-by-case basis,
14excuse pupils in grades 9 through 12 who participate in an
15interscholastic or extracurricular athletic program from
16engaging in physical education courses. In addition, a pupil in
17any of grades 3 through 12 who is eligible for special
18education may be excused if the pupil's parent or guardian
19agrees that the pupil must utilize the time set aside for
20physical education to receive special education support and
21services or, if there is no agreement, the individualized
22education program team for the pupil determines that the pupil
23must utilize the time set aside for physical education to
24receive special education support and services, which
25agreement or determination must be made a part of the
26individualized education program. However, a pupil requiring

SB2196- 87 -LRB100 12499 RPS 25458 b
1adapted physical education must receive that service in
2accordance with the individualized education program developed
3for the pupil. If requested, a school board is authorized to
4excuse a pupil from engaging in a physical education course if
5the pupil has an individualized educational program under
6Article 14 of this Code, is participating in an adaptive
7athletic program outside of the school setting, and documents
8such participation as determined by the school board. A school
9board may also excuse pupils in grades 9 through 12 enrolled in
10a Reserve Officer's Training Corps (ROTC) program sponsored by
11the school district from engaging in physical education
12courses. School boards which choose to exercise this authority
13shall establish a policy to excuse pupils on an individual
14basis.
15 (c) The provisions of this Section are subject to the
16provisions of Section 27-22.05.
17(Source: P.A. 98-116, eff. 7-29-13.)
18 (105 ILCS 5/27-7) (from Ch. 122, par. 27-7)
19 Sec. 27-7. Physical education course of study. A physical
20education course of study shall include a developmentally
21planned and sequential curriculum that fosters the development
22of movement skills, enhances health-related fitness, increases
23students' knowledge, offers direct opportunities to learn how
24to work cooperatively in a group setting, and encourages
25healthy habits and attitudes for a healthy lifestyle. A

SB2196- 88 -LRB100 12499 RPS 25458 b
1physical education course of study shall provide students with
2an opportunity for an appropriate amount of daily physical
3activity. A physical education course of study must be part of
4the regular school curriculum and not extra-curricular in
5nature or organization.
6 The State Board of Education shall prepare and make
7available guidelines for the various grades and types of
8schools in order to make effective the purposes set forth in
9this section and the requirements provided in Section 27-6, and
10shall see that the general provisions and intent of Sections
1127-5 to 27-9, inclusive, are enforced.
12(Source: P.A. 94-189, eff. 7-12-05; 94-200, eff. 7-12-05.)
13 (105 ILCS 5/27-24.2) (from Ch. 122, par. 27-24.2)
14 Sec. 27-24.2. Safety education; driver education course.
15Instruction shall be given in safety education in each of
16grades one through 8, equivalent to one class period each week,
17and any school district which maintains grades 9 through 12
18shall offer a driver education course in any such school which
19it operates. Its curriculum shall include content dealing with
20Chapters 11, 12, 13, 15, and 16 of the Illinois Vehicle Code,
21the rules adopted pursuant to those Chapters insofar as they
22pertain to the operation of motor vehicles, and the portions of
23the Litter Control Act relating to the operation of motor
24vehicles. The course of instruction given in grades 10 through
2512 shall include an emphasis on the development of knowledge,

SB2196- 89 -LRB100 12499 RPS 25458 b
1attitudes, habits, and skills necessary for the safe operation
2of motor vehicles, including motorcycles insofar as they can be
3taught in the classroom, and instruction on distracted driving
4as a major traffic safety issue. In addition, the course shall
5include instruction on special hazards existing at and required
6safety and driving precautions that must be observed at
7emergency situations, highway construction and maintenance
8zones, and railroad crossings and the approaches thereto.
9Beginning with the 2017-2018 school year, the course shall also
10include instruction concerning law enforcement procedures for
11traffic stops, including a demonstration of the proper actions
12to be taken during a traffic stop and appropriate interactions
13with law enforcement. The course of instruction required of
14each eligible student at the high school level shall consist of
15a minimum of 30 clock hours of classroom instruction and a
16minimum of 6 clock hours of individual behind-the-wheel
17instruction in a dual control car on public roadways taught by
18a driver education instructor endorsed by the State Board of
19Education. Both the classroom instruction part and the practice
20driving part of such driver education course shall be open to a
21resident or non-resident student attending a non-public school
22in the district wherein the course is offered. Each student
23attending any public or non-public high school in the district
24must receive a passing grade in at least 8 courses during the
25previous 2 semesters prior to enrolling in a driver education
26course, or the student shall not be permitted to enroll in the

SB2196- 90 -LRB100 12499 RPS 25458 b
1course; provided that the local superintendent of schools (with
2respect to a student attending a public high school in the
3district) or chief school administrator (with respect to a
4student attending a non-public high school in the district) may
5waive the requirement if the superintendent or chief school
6administrator, as the case may be, deems it to be in the best
7interest of the student. A student may be allowed to commence
8the classroom instruction part of such driver education course
9prior to reaching age 15 if such student then will be eligible
10to complete the entire course within 12 months after being
11allowed to commence such classroom instruction.
12 A school district may offer a driver education course in a
13school by contracting with a commercial driver training school
14to provide both the classroom instruction part and the practice
15driving part or either one without having to request a
16modification or waiver of administrative rules of the State
17Board of Education if a public hearing on whether to enter into
18a contract with a commercial driver training school has been
19held at a regular or special school board meeting prior to
20entering into such a contract. If a school district chooses to
21contract with a commercial driver training school, then the
22district must provide evidence to the State Board of Education
23that the commercial driver training school with which it will
24contract holds a license issued by the Secretary of State under
25Article IV of Chapter 6 of the Illinois Vehicle Code and that
26each instructor employed by the commercial driver training

SB2196- 91 -LRB100 12499 RPS 25458 b
1school to provide instruction to students served by the school
2district holds a valid teaching license issued under the
3requirements of this Code and rules of the State Board of
4Education. Such evidence must include, but need not be limited
5to, a list of each instructor assigned to teach students served
6by the school district, which list shall include the
7instructor's name, personal identification number as required
8by the State Board of Education, birth date, and driver's
9license number. Once the contract is entered into, the school
10district shall notify the State Board of Education of any
11changes in the personnel providing instruction within 15
12calendar days after an instructor leaves the program or a new
13instructor is hired. Such notification shall include the
14instructor's name, personal identification number as required
15by the State Board of Education, birth date, and driver's
16license number. If the school district maintains an Internet
17website, then the district shall post a copy of the final
18contract between the district and the commercial driver
19training school on the district's Internet website. If no
20Internet website exists, then the school district shall make
21available the contract upon request. A record of all materials
22in relation to the contract must be maintained by the school
23district and made available to parents and guardians upon
24request. The instructor's date of birth and driver's license
25number and any other personally identifying information as
26deemed by the federal Driver's Privacy Protection Act of 1994

SB2196- 92 -LRB100 12499 RPS 25458 b
1must be redacted from any public materials.
2 Such a course may be commenced immediately after the
3completion of a prior course. Teachers of such courses shall
4meet the licensure certification requirements of this Code Act
5and regulations of the State Board as to qualifications.
6 Subject to rules of the State Board of Education, the
7school district may charge a reasonable fee, not to exceed $50,
8to students who participate in the course, unless a student is
9unable to pay for such a course, in which event the fee for
10such a student must be waived. However, the district may
11increase this fee to an amount not to exceed $250 by school
12board resolution following a public hearing on the increase,
13which increased fee must be waived for students who participate
14in the course and are unable to pay for the course. The total
15amount from driver education fees and reimbursement from the
16State for driver education must not exceed the total cost of
17the driver education program in any year and must be deposited
18into the school district's driver education fund as a separate
19line item budget entry. All moneys deposited into the school
20district's driver education fund must be used solely for the
21funding of a high school driver education program approved by
22the State Board of Education that uses driver education
23instructors endorsed by the State Board of Education.
24(Source: P.A. 99-642, eff. 7-28-16; 99-720, eff. 1-1-17.)
25 Section 15. The Illinois Educational Labor Relations Act is

SB2196- 93 -LRB100 12499 RPS 25458 b
1amended by changing Sections 4 and 12 and adding section 10.7
2as follows:
3 (115 ILCS 5/4) (from Ch. 48, par. 1704)
4 (Text of Section WITHOUT the changes made by P.A. 98-599,
5which has been held unconstitutional)
6 Sec. 4. Employer rights. Employers shall not be required to
7bargain over matters of inherent managerial policy, which shall
8include such areas of discretion or policy as the functions of
9the employer, standards of services, its overall budget, the
10organizational structure and selection of new employees and
11direction of employees. Employers, however, shall be required
12to bargain collectively with regard to policy matters directly
13affecting wages, hours and terms and conditions of employment
14as well as the impact thereon upon request by employee
15representatives except as provided in Section 10.7. To preserve
16the rights of employers and exclusive representatives which
17have established collective bargaining relationships or
18negotiated collective bargaining agreements prior to the
19effective date of this Act, employers shall be required to
20bargain collectively with regard to any matter concerning
21wages, hours or conditions of employment about which they have
22bargained for and agreed to in a collective bargaining
23agreement prior to the effective date of this Act. The duty "to
24bargain collectively" or "to bargain collectively in good
25faith" does not include an obligation to negotiate over a

SB2196- 94 -LRB100 12499 RPS 25458 b
1permissive subject of bargaining or a subject described in
2Section 10.7, regardless of whether the employer and an
3exclusive representative of its employees have previously
4bargained over that subject.
5(Source: P.A. 83-1014.)
6 (115 ILCS 5/10.7 new)
7 Sec. 10.7. Duty to bargain regarding automatic wage
8increases and seniority.
9 (a) Notwithstanding any other provision of this Act,
10employers are not required to bargain over matters affecting
11automatic wage increases in cases in which an employee has
12obtained an advanced education degree, nor are these changes
13subject to interest arbitration.
14 (b) Notwithstanding any other provision of this Act,
15employers are not required to bargain over matters affecting
16any pay increase, either through changes to the pay schedule or
17as a result of accumulated years of service, nor are these
18changes subject to interest arbitration.
19 (c) The provisions of this Section do not apply to an
20employment contract or collective bargaining agreement that is
21in effect on the effective date of this amendatory Act of the
22100th General Assembly. However, any such contract or agreement
23that is subsequently modified, amended, or renewed is subject
24to the provisions of this Section.

SB2196- 95 -LRB100 12499 RPS 25458 b
1 (115 ILCS 5/12) (from Ch. 48, par. 1712)
2 Sec. 12. Impasse procedures.
3 (a) This subsection (a) applies only to collective
4bargaining between an educational employer that is not a public
5school district organized under Article 34 of the School Code
6and an exclusive representative of its employees. If the
7parties engaged in collective bargaining have not reached an
8agreement by 90 days before the scheduled start of the
9forthcoming school year, the parties shall notify the Illinois
10Educational Labor Relations Board concerning the status of
11negotiations. This notice shall include a statement on whether
12mediation has been used.
13 Upon demand of either party, collective bargaining between
14the employer and an exclusive bargaining representative must
15begin within 60 days of the date of certification of the
16representative by the Board, or in the case of an existing
17exclusive bargaining representative, within 60 days of the
18receipt by a party of a demand to bargain issued by the other
19party. Once commenced, collective bargaining must continue for
20at least a 60 day period, unless a contract is entered into.
21 Except as otherwise provided in subsection (b) of this
22Section, if after a reasonable period of negotiation and within
2390 days of the scheduled start of the forth-coming school year,
24the parties engaged in collective bargaining have reached an
25impasse, either party may petition the Board to initiate
26mediation. Alternatively, the Board on its own motion may

SB2196- 96 -LRB100 12499 RPS 25458 b
1initiate mediation during this period. However, mediation
2shall be initiated by the Board at any time when jointly
3requested by the parties and the services of the mediators
4shall continuously be made available to the employer and to the
5exclusive bargaining representative for purposes of
6arbitration of grievances and mediation or arbitration of
7contract disputes. If requested by the parties, the mediator
8may perform fact-finding and in so doing conduct hearings and
9make written findings and recommendations for resolution of the
10dispute. Such mediation shall be provided by the Board and
11shall be held before qualified impartial individuals. Nothing
12prohibits the use of other individuals or organizations such as
13the Federal Mediation and Conciliation Service or the American
14Arbitration Association selected by both the exclusive
15bargaining representative and the employer. When making wage
16and benefit determinations during interest arbitration, the
17employer's financial ability to fund the proposals based on
18existing available resources shall be given primary
19consideration, provided that such ability is not predicated on
20an assumption that lines of credit or reserve funds are
21available or that the employer may or will receive or develop
22new sources of revenue or increase existing sources of revenue.
23 If the parties engaged in collective bargaining fail to
24reach an agreement within 45 days of the scheduled start of the
25forthcoming school year and have not requested mediation, the
26Illinois Educational Labor Relations Board shall invoke

SB2196- 97 -LRB100 12499 RPS 25458 b
1mediation.
2 Whenever mediation is initiated or invoked under this
3subsection (a), the parties may stipulate to defer selection of
4a mediator in accordance with rules adopted by the Board.
5 (a-5) This subsection (a-5) applies only to collective
6bargaining between a public school district or a combination of
7public school districts, including, but not limited to, joint
8cooperatives, that is not organized under Article 34 of the
9School Code and an exclusive representative of its employees.
10 (1) Any time 15 days after mediation has commenced,
11 either party may initiate the public posting process. The
12 mediator may initiate the public posting process at any
13 time 15 days after mediation has commenced during the
14 mediation process. Initiation of the public posting
15 process must be filed in writing with the Board, and copies
16 must be submitted to the parties on the same day the
17 initiation is filed with the Board.
18 (2) Within 7 days after the initiation of the public
19 posting process, each party shall submit to the mediator,
20 the Board, and the other party in writing the most recent
21 offer of the party, including a cost summary of the offer.
22 Seven days after receipt of the parties' offers, the Board
23 shall make public the offers and each party's cost summary
24 dealing with those issues on which the parties have failed
25 to reach agreement by immediately posting the offers on its
26 Internet website, unless otherwise notified by the

SB2196- 98 -LRB100 12499 RPS 25458 b
1 mediator or jointly by the parties that agreement has been
2 reached. On the same day of publication by the Board, at a
3 minimum, the school district shall distribute notice of the
4 availability of the offers on the Board's Internet website
5 to all news media that have filed an annual request for
6 notices from the school district pursuant to Section 2.02
7 of the Open Meetings Act. The parties' offers shall remain
8 on the Board's Internet website until the parties have
9 reached and ratified an agreement.
10 (a-10) This subsection (a-10) applies only to collective
11bargaining between a public school district organized under
12Article 34 of the School Code and an exclusive representative
13of its employees.
14 (1) For collective bargaining agreements between an
15 educational employer to which this subsection (a-10)
16 applies and an exclusive representative of its employees,
17 if the parties fail to reach an agreement after a
18 reasonable period of mediation, the dispute shall be
19 submitted to fact-finding in accordance with this
20 subsection (a-10). Either the educational employer or the
21 exclusive representative may initiate fact-finding by
22 submitting a written demand to the other party with a copy
23 of the demand submitted simultaneously to the Board.
24 (2) Within 3 days following a party's demand for
25 fact-finding, each party shall appoint one member of the
26 fact-finding panel, unless the parties agree to proceed

SB2196- 99 -LRB100 12499 RPS 25458 b
1 without a tri-partite panel. Following these appointments,
2 if any, the parties shall select a qualified impartial
3 individual to serve as the fact-finder and chairperson of
4 the fact-finding panel, if applicable. An individual shall
5 be considered qualified to serve as the fact-finder and
6 chairperson of the fact-finding panel, if applicable, if he
7 or she was not the same individual who was appointed as the
8 mediator and if he or she satisfies the following
9 requirements: membership in good standing with the
10 National Academy of Arbitrators, Federal Mediation and
11 Conciliation Service, or American Arbitration Association
12 for a minimum of 10 years; membership on the mediation
13 roster for the Illinois Labor Relations Board or Illinois
14 Educational Labor Relations Board; issuance of at least 5
15 interest arbitration awards arising under the Illinois
16 Public Labor Relations Act; and participation in impasse
17 resolution processes arising under private or public
18 sector collective bargaining statutes in other states. If
19 the parties are unable to agree on a fact-finder, the
20 parties shall request a panel of fact-finders who satisfy
21 the requirements set forth in this paragraph (2) from
22 either the Federal Mediation and Conciliation Service or
23 the American Arbitration Association and shall select a
24 fact-finder from such panel in accordance with the
25 procedures established by the organization providing the
26 panel.

SB2196- 100 -LRB100 12499 RPS 25458 b
1 (3) The fact-finder shall have the following duties and
2 powers:
3 (A) to require the parties to submit a statement of
4 disputed issues and their positions regarding each
5 issue either jointly or separately;
6 (B) to identify disputed issues that are economic
7 in nature;
8 (C) to meet with the parties either separately or
9 in executive sessions;
10 (D) to conduct hearings and regulate the time,
11 place, course, and manner of the hearings;
12 (E) to request the Board to issue subpoenas
13 requiring the attendance and testimony of witnesses or
14 the production of evidence;
15 (F) to administer oaths and affirmations;
16 (G) to examine witnesses and documents;
17 (H) to create a full and complete written record of
18 the hearings;
19 (I) to attempt mediation or remand a disputed issue
20 to the parties for further collective bargaining;
21 (J) to require the parties to submit final offers
22 for each disputed issue either individually or as a
23 package or as a combination of both; and
24 (K) to employ any other measures deemed
25 appropriate to resolve the impasse.
26 (4) If the dispute is not settled within 75 days after

SB2196- 101 -LRB100 12499 RPS 25458 b
1 the appointment of the fact-finding panel, the
2 fact-finding panel shall issue a private report to the
3 parties that contains advisory findings of fact and
4 recommended terms of settlement for all disputed issues and
5 that sets forth a rationale for each recommendation. The
6 fact-finding panel, acting by a majority of its members,
7 shall base its findings and recommendations upon the
8 following criteria as applicable:
9 (A) the lawful authority of the employer;
10 (B) the federal and State statutes or local
11 ordinances and resolutions applicable to the employer;
12 (C) prior collective bargaining agreements and the
13 bargaining history between the parties;
14 (D) stipulations of the parties;
15 (E) the interests and welfare of the public and the
16 students and families served by the employer;
17 (F) the employer's financial ability to fund the
18 proposals based on existing available resources,
19 provided that such ability is not predicated on an
20 assumption that lines of credit or reserve funds are
21 available or that the employer may or will receive or
22 develop new sources of revenue or increase existing
23 sources of revenue;
24 (G) the impact of any economic adjustments on the
25 employer's ability to pursue its educational mission;
26 (H) the present and future general economic

SB2196- 102 -LRB100 12499 RPS 25458 b
1 conditions in the locality and State;
2 (I) a comparison of the wages, hours, and
3 conditions of employment of the employees involved in
4 the dispute with the wages, hours, and conditions of
5 employment of employees performing similar services in
6 public education in the 10 largest U.S. cities;
7 (J) the average consumer prices in urban areas for
8 goods and services, which is commonly known as the cost
9 of living;
10 (K) the overall compensation presently received by
11 the employees involved in the dispute, including
12 direct wage compensation; vacations, holidays, and
13 other excused time; insurance and pensions; medical
14 and hospitalization benefits; the continuity and
15 stability of employment and all other benefits
16 received; and how each party's proposed compensation
17 structure supports the educational goals of the
18 district;
19 (L) changes in any of the circumstances listed in
20 items (A) through (K) of this paragraph (4) during the
21 fact-finding proceedings;
22 (M) the effect that any term the parties are at
23 impasse on has or may have on the overall educational
24 environment, learning conditions, and working
25 conditions with the school district; and
26 (N) the effect that any term the parties are at

SB2196- 103 -LRB100 12499 RPS 25458 b
1 impasse on has or may have in promoting the public
2 policy of this State.
3 (5) The fact-finding panel's recommended terms of
4 settlement shall be deemed agreed upon by the parties as
5 the final resolution of the disputed issues and
6 incorporated into the collective bargaining agreement
7 executed by the parties, unless either party tenders to the
8 other party and the chairperson of the fact-finding panel a
9 notice of rejection of the recommended terms of settlement
10 with a rationale for the rejection, within 15 days after
11 the date of issuance of the fact-finding panel's report. If
12 either party submits a notice of rejection, the chairperson
13 of the fact-finding panel shall publish the fact-finding
14 panel's report and the notice of rejection for public
15 information by delivering a copy to all newspapers of
16 general circulation in the community with simultaneous
17 written notice to the parties.
18 (b) If, after a period of bargaining of at least 60 days, a
19dispute or impasse exists between an educational employer whose
20territorial boundaries are coterminous with those of a city
21having a population in excess of 500,000 and the exclusive
22bargaining representative over a subject or matter set forth in
23Section 4.5 of this Act, the parties shall submit the dispute
24or impasse to the dispute resolution procedure agreed to
25between the parties. The procedure shall provide for mediation
26of disputes by a rotating mediation panel and may, at the

SB2196- 104 -LRB100 12499 RPS 25458 b
1request of either party, include the issuance of advisory
2findings of fact and recommendations.
3 (c) The costs of fact finding and mediation shall be shared
4equally between the employer and the exclusive bargaining
5agent, provided that, for purposes of mediation under this Act,
6if either party requests the use of mediation services from the
7Federal Mediation and Conciliation Service, the other party
8shall either join in such request or bear the additional cost
9of mediation services from another source. All other costs and
10expenses of complying with this Section must be borne by the
11party incurring them.
12 (c-5) If an educational employer or exclusive bargaining
13representative refuses to participate in mediation or fact
14finding when required by this Section, the refusal shall be
15deemed a refusal to bargain in good faith.
16 (d) Nothing in this Act prevents an employer and an
17exclusive bargaining representative from mutually submitting
18to final and binding impartial arbitration unresolved issues
19concerning the terms of a new collective bargaining agreement.
20(Source: P.A. 97-7, eff. 6-13-11; 97-8, eff. 6-13-11; 98-513,
21eff. 1-1-14.)
22 Section 20. The Prevailing Wage Act is amended by adding
23Section 11c as follows:
24 (820 ILCS 130/11c new)

SB2196- 105 -LRB100 12499 RPS 25458 b
1 Sec. 11c. Exemption. Any public works project with an
2estimated project cost of $250,000 or less is exempt from the
3provisions of this Act.
4 Section 90. The State Mandates Act is amended by adding
5Section 8.41 as follows:
6 (30 ILCS 805/8.41 new)
7 Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
8of this Act, no reimbursement by the State is required for the
9implementation of any mandate created by this amendatory Act of
10the 100th General Assembly.
11 Section 97. Inseverability. The provisions of this Act are
12mutually dependent and inseverable. If any provision is held
13invalid other than as applied to a particular person or
14circumstance, then this entire Act is invalid.

SB2196- 106 -LRB100 12499 RPS 25458 b
1 INDEX
2 Statutes amended in order of appearance