SB1361 95TH GENERAL ASSEMBLY

LRB095 10946 NHT 31242 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1361

Introduced 2/9/2007, by Sen. M. Maggie Crotty

SYNOPSIS AS INTRODUCED:

105 ILCS 5/19-7.5 new
105 ILCS 5/19-8	from Ch. 122, par. 19-8
105 ILCS 5/19-9	from Ch. 122, par. 19-9
105 ILCS 5/19-11	from Ch. 122, par. 19-11
105 ILCS 5/19-13	from Ch. 122, par. 19-13

Amends the School Code. In a provision authorizing a school district, other than the Chicago school district, to issue bonds for paying orders issued for the wages of teachers or for the payment of claims against the district, adds that the bonds may also be used for reimbursing the district for property tax refunds. Makes related changes concerning a resolution to issue the bonds, submission of the proposition to voters, the amount of indebtedness, interest, and maturity, the provision of a tax levy, and the sale of the bonds.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The School Code is amended by adding Section 19-7.5 and by changing Sections 19-8, 19-9, 19-11, and 19-13 as follows:

(105 ILCS 5/19-7.5 new)

Sec. 19-7.5. Definition of property tax refunds. For the purposes of Sections 19-8, 19-9, 19-11, and 19-13 of this Code, "property tax refunds" means property tax revenues collected on behalf of a school district but not received by the district due to the payment of refunds by the county collector within the preceding 6 years pursuant to Section 23-20 of the Property Tax Code.

(105 ILCS 5/19-8) (from Ch. 122, par. 19-8)

Sec. 19-8. Bonds to pay claims. Any school district or non-high district operating under general law or special charter having a population of 500,000 or less is authorized to issue bonds for the following purposes:

(1) the purpose of paying orders issued for the wages of teachers;

(2) , or for the payment of claims against any such district; and .

(3) reimbursing the district for property tax refunds.

Such bonds may be issued in an amount, including existing indebtedness, in excess of any statutory limitation as to debt.

(Source: P.A. 94-234, eff. 7-1-06.)

(105 ILCS 5/19-9) (from Ch. 122, par. 19-9)

Sec. 19-9. Resolution to issue bonds - Submission to voters. Before any district as described in Section 19-8 shall avail itself of the provisions of that Section, section the governing body thereof shall examine and consider the several teachers' orders or claims, or both, proposed to be paid or the amount needed to reimburse the district for property tax refunds and thereupon and if it appears that they were authorized and allowed for proper school purposes it shall adopt a resolution setting so declaring and set forth and describing describe in detail such teachers' orders and claims or the amount needed to reimburse the district for property tax refunds, and the adoption of the resolution shall establish the validity thereof, notwithstanding the amount of such orders, and claims, or reimbursement may exceed in whole or in part any applicable statutory debt limit in force at the time the indebtedness evidenced by such orders, and claims, or reimbursement was incurred. The resolution shall also declare the intention of the district to issue bonds for the purpose of paying such teachers' orders or claims, or both, or the amount needed to reimburse the district for property tax refunds and direct that notice of such intention be published at least once in a newspaper published within the district and if there be no newspaper published within the district then notice shall be published in a newspaper having general circulation within the district. The notice shall set forth (1) the time within which a petition may be filed requesting the submission of the proposition to issue the bonds as hereinafter in this Section provided; (2) the specific number of voters required to sign the petition; and the date of the prospective referendum. The recording officer of the district shall provide a petition form to any individual requesting one. If within 30 days after such publication of such notice a petition is filed with the recording officer of the district, signed by the voters of the district equal to 10% or more of the registered voters of the district requesting that the proposition to issue bonds as authorized by Section 19-8 be submitted to the voters thereof, then the district shall not be authorized to issue bonds as provided by Section 19-8 until the proposition has been submitted to and approved by a majority of the voters voting on the proposition at a regular scheduled election. The board shall certify the proposition to the proper election authorities for submission in accordance with the general election law. If no such petition with the requisite number of signatures is filed within said 30 days, or if any and all petitions filed are invalid, then the district shall thereafter be authorized to issue bonds for the purposes and as provided in Section 19-8.

(Source: P.A. 87-767.)

(105 ILCS 5/19-11) (from Ch. 122, par. 19-11)

Sec. 19-11. Amount of indebtedness - Interest and maturity. Any district which has complied with Section 19-9 and which is authorized to issue bonds under Sections 19-8, 19-9 and 19-10 shall adopt a resolution specifying the amount of indebtedness to be incurred funded, whether for the purpose of paying claims, or for paying teachers' orders, for reimbursing the district for property tax refunds, or for paying liabilities or obligations imposed on any district resulting from the division of assets as provided by Article 7 of this Act or Article 5 of this Act as it existed prior to July 1, 1952. The resolution shall set forth the date, denomination, rate of interest and maturities of the bonds, fix all details with respect to the issue and execution thereof, and provide for the levy of a tax sufficient to pay both principal and interest of the bonds as they mature. The bonds shall bear interest at a rate not to exceed the maximum rate authorized by the Bond Authorization Act, as amended at the time of the making of the contract, payable annually or semi-annually, as the governing body may determine, and mature in not more than 20 years from date thereof.

With respect to instruments for the payment of money issued under this Section either before, on, or after the effective date of this amendatory Act of 1989, it is and always has been the intention of the General Assembly (i) that the Omnibus Bond Acts are and always have been supplementary grants of power to issue instruments in accordance with the Omnibus Bond Acts, regardless of any provision of this Act that may appear to be or to have been more restrictive than those Acts, (ii) that the provisions of this Section are not a limitation on the supplementary authority granted by the Omnibus Bond Acts, and (iii) that instruments issued under this Section within the supplementary authority granted by the Omnibus Bond Acts are not invalid because of any provision of this Act that may appear to be or to have been more restrictive than those Acts.

(Source: P.A. 86-4.)

(105 ILCS 5/19-13) (from Ch. 122, par. 19-13)

Sec. 19-13. Sale or exchange of bonds. Any bonds issued under Sections 19-8 to 19-11, inclusive, may be exchanged par for par for claims or unpaid orders for wages of teachers, or both, or may be sold and the proceeds received used to pay such claims or orders or to reimburse the school district for property tax refunds.

(Source: Laws 1961, p. 31.)