Bill Text: IL HB5529 | 2015-2016 | 99th General Assembly | Introduced

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

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Bill Title: Amends the School Code. With respect to a school district other than the Chicago school district, provides that through June 30, 2019 (instead of June 30, 2016), surplus life safety taxes and interest earnings thereon may be transferred to the Operations and Maintenance Fund for building repair work. Extends the time period during which a school district other than the Chicago school district may transfer moneys from specified funds for any purpose from June 30, 2016 to June 30, 2019. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2016-08-05 - Public Act . . . . . . . . . 99-0713 [HB5529 Detail]

Download: Illinois-2015-HB5529-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB5529 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
105 ILCS 5/17-2.11 from Ch. 122, par. 17-2.11
105 ILCS 5/17-2A from Ch. 122, par. 17-2A
Amends the School Code. With respect to a school district other than the Chicago school district, provides that through June 30, 2019 (instead of June 30, 2016), surplus life safety taxes and interest earnings thereon may be transferred to the Operations and Maintenance Fund for building repair work. Extends the time period during which a school district other than the Chicago school district may transfer moneys from specified funds for any purpose from June 30, 2016 to June 30, 2019. Effective immediately.
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A BILL FOR
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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing Sections
17-2.11 and 17-2A as follows:
(105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11)
Sec. 17-2.11. School board power to levy a tax or to borrow
money and issue bonds for fire prevention, safety, energy
conservation, accessibility, school security, and specified
repair purposes.
(a) Whenever, as a result of any lawful order of any
agency, other than a school board, having authority to enforce
any school building code applicable to any facility that houses
students, or any law or regulation for the protection and
safety of the environment, pursuant to the Environmental
Protection Act, any school district having a population of less
than 500,000 inhabitants is required to alter or reconstruct
any school building or permanent, fixed equipment; the district
may, by proper resolution, levy a tax for the purpose of making
such alteration or reconstruction, based on a survey report by
an architect or engineer licensed in this State, upon all of
the taxable property of the district at the value as assessed
by the Department of Revenue and at a rate not to exceed 0.05%

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per year for a period sufficient to finance such alteration or
reconstruction, upon the following conditions:
(1) When there are not sufficient funds available in
the operations and maintenance fund of the school district,
the school facility occupation tax fund of the district, or
the fire prevention and safety fund of the district, as
determined by the district on the basis of rules adopted by
the State Board of Education, to make such alteration or
reconstruction or to purchase and install such permanent,
fixed equipment so ordered or determined as necessary.
Appropriate school district records must be made available
to the State Superintendent of Education, upon request, to
confirm this insufficiency.
(2) When a certified estimate of an architect or
engineer licensed in this State stating the estimated
amount necessary to make the alteration or reconstruction
or to purchase and install the equipment so ordered has
been secured by the school district, and the estimate has
been approved by the regional superintendent of schools
having jurisdiction over the district and the State
Superintendent of Education. Approval must not be granted
for any work that has already started without the prior
express authorization of the State Superintendent of
Education. If the estimate is not approved or is denied
approval by the regional superintendent of schools within 3
months after the date on which it is submitted to him or

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her, the school board of the district may submit the
estimate directly to the State Superintendent of Education
for approval or denial.
In the case of an emergency situation, where the estimated
cost to effectuate emergency repairs is less than the amount
specified in Section 10-20.21 of this Code, the school district
may proceed with such repairs prior to approval by the State
Superintendent of Education, but shall comply with the
provisions of subdivision (2) of this subsection (a) as soon
thereafter as may be as well as Section 10-20.21 of this Code.
If the estimated cost to effectuate emergency repairs is
greater than the amount specified in Section 10-20.21 of this
Code, then the school district shall proceed in conformity with
Section 10-20.21 of this Code and with rules established by the
State Board of Education to address such situations. The rules
adopted by the State Board of Education to deal with these
situations shall stipulate that emergency situations must be
expedited and given priority consideration. For purposes of
this paragraph, an emergency is a situation that presents an
imminent and continuing threat to the health and safety of
students or other occupants of a facility, requires complete or
partial evacuation of a building or part of a building, or
consumes one or more of the 5 emergency days built into the
adopted calendar of the school or schools or would otherwise be
expected to cause such school or schools to fall short of the
minimum school calendar requirements.

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(b) Whenever any such district determines that it is
necessary for energy conservation purposes that any school
building or permanent, fixed equipment should be altered or
reconstructed and that such alterations or reconstruction will
be made with funds not necessary for the completion of approved
and recommended projects contained in any safety survey report
or amendments thereto authorized by Section 2-3.12 of this Act;
the district may levy a tax or issue bonds as provided in
subsection (a) of this Section.
(c) Whenever any such district determines that it is
necessary for accessibility purposes and to comply with the
school building code that any school building or equipment
should be altered or reconstructed and that such alterations or
reconstruction will be made with funds not necessary for the
completion of approved and recommended projects contained in
any safety survey report or amendments thereto authorized under
Section 2-3.12 of this Act, the district may levy a tax or
issue bonds as provided in subsection (a) of this Section.
(d) Whenever any such district determines that it is
necessary for school security purposes and the related
protection and safety of pupils and school personnel that any
school building or property should be altered or reconstructed
or that security systems and equipment (including but not
limited to intercom, early detection and warning, access
control and television monitoring systems) should be purchased
and installed, and that such alterations, reconstruction or

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purchase and installation of equipment will be made with funds
not necessary for the completion of approved and recommended
projects contained in any safety survey report or amendment
thereto authorized by Section 2-3.12 of this Act and will deter
and prevent unauthorized entry or activities upon school
property by unknown or dangerous persons, assure early
detection and advance warning of any such actual or attempted
unauthorized entry or activities and help assure the continued
safety of pupils and school staff if any such unauthorized
entry or activity is attempted or occurs; the district may levy
a tax or issue bonds as provided in subsection (a) of this
Section.
(e) If a school district does not need funds for other fire
prevention and safety projects, including the completion of
approved and recommended projects contained in any safety
survey report or amendments thereto authorized by Section
2-3.12 of this Act, and it is determined after a public hearing
(which is preceded by at least one published notice (i)
occurring at least 7 days prior to the hearing in a newspaper
of general circulation within the school district and (ii)
setting forth the time, date, place, and general subject matter
of the hearing) that there is a substantial, immediate, and
otherwise unavoidable threat to the health, safety, or welfare
of pupils due to disrepair of school sidewalks, playgrounds,
parking lots, or school bus turnarounds and repairs must be
made; then the district may levy a tax or issue bonds as

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provided in subsection (a) of this Section.
(f) For purposes of this Section a school district may
replace a school building or build additions to replace
portions of a building when it is determined that the
effectuation of the recommendations for the existing building
will cost more than the replacement costs. Such determination
shall be based on a comparison of estimated costs made by an
architect or engineer licensed in the State of Illinois. The
new building or addition shall be equivalent in area (square
feet) and comparable in purpose and grades served and may be on
the same site or another site. Such replacement may only be
done upon order of the regional superintendent of schools and
the approval of the State Superintendent of Education.
(g) The filing of a certified copy of the resolution
levying the tax when accompanied by the certificates of the
regional superintendent of schools and State Superintendent of
Education shall be the authority of the county clerk to extend
such tax.
(h) The county clerk of the county in which any school
district levying a tax under the authority of this Section is
located, in reducing raised levies, shall not consider any such
tax as a part of the general levy for school purposes and shall
not include the same in the limitation of any other tax rate
which may be extended.
Such tax shall be levied and collected in like manner as
all other taxes of school districts, subject to the provisions

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contained in this Section.
(i) The tax rate limit specified in this Section may be
increased to .10% upon the approval of a proposition to effect
such increase by a majority of the electors voting on that
proposition at a regular scheduled election. Such proposition
may be initiated by resolution of the school board and shall be
certified by the secretary to the proper election authorities
for submission in accordance with the general election law.
(j) When taxes are levied by any school district for fire
prevention, safety, energy conservation, and school security
purposes as specified in this Section, and the purposes for
which the taxes have been levied are accomplished and paid in
full, and there remain funds on hand in the Fire Prevention and
Safety Fund from the proceeds of the taxes levied, including
interest earnings thereon, the school board by resolution shall
use such excess and other board restricted funds, excluding
bond proceeds and earnings from such proceeds, as follows:
(1) for other authorized fire prevention, safety,
energy conservation, and school security purposes and for
required safety inspections; or
(2) for transfer to the Operations and Maintenance Fund
for the purpose of abating an equal amount of operations
and maintenance purposes taxes.
Notwithstanding subdivision (2) of this subsection (j) and
subsection (k) of this Section, through June 30, 2019 2016, the
school board may, by proper resolution following a public

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hearing set by the school board or the president of the school
board (that is preceded (i) by at least one published notice
over the name of the clerk or secretary of the board, occurring
at least 7 days and not more than 30 days prior to the hearing,
in a newspaper of general circulation within the school
district and (ii) by posted notice over the name of the clerk
or secretary of the board, at least 48 hours before the
hearing, at the principal office of the school board or at the
building where the hearing is to be held if a principal office
does not exist, with both notices setting forth the time, date,
place, and subject matter of the hearing), transfer surplus
life safety taxes and interest earnings thereon to the
Operations and Maintenance Fund for building repair work.
(k) If any transfer is made to the Operation and
Maintenance Fund, the secretary of the school board shall
within 30 days notify the county clerk of the amount of that
transfer and direct the clerk to abate the taxes to be extended
for the purposes of operations and maintenance authorized under
Section 17-2 of this Act by an amount equal to such transfer.
(l) If the proceeds from the tax levy authorized by this
Section are insufficient to complete the work approved under
this Section, the school board is authorized to sell bonds
without referendum under the provisions of this Section in an
amount that, when added to the proceeds of the tax levy
authorized by this Section, will allow completion of the
approved work.

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(m) Any bonds issued pursuant to this Section shall bear
interest at a rate not to exceed the maximum rate authorized by
law at the time of the making of the contract, shall mature
within 20 years from date, and shall be signed by the president
of the school board and the treasurer of the school district.
(n) In order to authorize and issue such bonds, the school
board shall adopt a resolution fixing the amount of bonds, the
date thereof, the maturities thereof, rates of interest
thereof, place of payment and denomination, which shall be in
denominations of not less than $100 and not more than $5,000,
and provide for the levy and collection of a direct annual tax
upon all the taxable property in the school district sufficient
to pay the principal and interest on such bonds to maturity.
Upon the filing in the office of the county clerk of the county
in which the school district is located of a certified copy of
the resolution, it is the duty of the county clerk to extend
the tax therefor in addition to and in excess of all other
taxes heretofore or hereafter authorized to be levied by such
school district.
(o) After the time such bonds are issued as provided for by
this Section, if additional alterations or reconstructions are
required to be made because of surveys conducted by an
architect or engineer licensed in the State of Illinois, the
district may levy a tax at a rate not to exceed .05% per year
upon all the taxable property of the district or issue
additional bonds, whichever action shall be the most feasible.

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(p) This Section is cumulative and constitutes complete
authority for the issuance of bonds as provided in this Section
notwithstanding any other statute or law to the contrary.
(q) With respect to instruments for the payment of money
issued under this Section either before, on, or after the
effective date of Public Act 86-004 (June 6, 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.
(r) When the purposes for which the bonds are issued have
been accomplished and paid for in full and there remain funds
on hand from the proceeds of the bond sale and interest
earnings therefrom, the board shall, by resolution, use such
excess funds in accordance with the provisions of Section
10-22.14 of this Act.
(s) Whenever any tax is levied or bonds issued for fire
prevention, safety, energy conservation, and school security

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purposes, such proceeds shall be deposited and accounted for
separately within the Fire Prevention and Safety Fund.
(Source: P.A. 98-26, eff. 6-21-13; 98-1066, eff. 8-26-14;
99-143, eff. 7-27-15.)
(105 ILCS 5/17-2A) (from Ch. 122, par. 17-2A)
Sec. 17-2A. Interfund Transfers.
(a) The school board of any district having a population of
less than 500,000 inhabitants may, by proper resolution
following a public hearing set by the school board or the
president of the school board (that is preceded (i) by at least
one published notice over the name of the clerk or secretary of
the board, occurring at least 7 days and not more than 30 days
prior to the hearing, in a newspaper of general circulation
within the school district and (ii) by posted notice over the
name of the clerk or secretary of the board, at least 48 hours
before the hearing, at the principal office of the school board
or at the building where the hearing is to be held if a
principal office does not exist, with both notices setting
forth the time, date, place, and subject matter of the
hearing), transfer money from (1) the Educational Fund to the
Operations and Maintenance Fund or the Transportation Fund, (2)
the Operations and Maintenance Fund to the Educational Fund or
the Transportation Fund, or (3) the Transportation Fund to the
Educational Fund or the Operations and Maintenance Fund of said
district, provided that, except during the period from July 1,

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2003 through June 30, 2019 2016, such transfer is made solely
for the purpose of meeting one-time, non-recurring expenses.
Except during the period from July 1, 2003 through June 30,
2019 2016 and except as otherwise provided in subsection (b) of
this Section, any other permanent interfund transfers
authorized by any provision or judicial interpretation of this
Code for which the transferee fund is not precisely and
specifically set forth in the provision of this Code
authorizing such transfer shall be made to the fund of the
school district most in need of the funds being transferred, as
determined by resolution of the school board.
(b) Notwithstanding subsection (a) of this Section or any
other provision of this Code to the contrary, the school board
of any school district (i) that is subject to the Property Tax
Extension Limitation Law, (ii) that has a population of less
than 500,000 inhabitants, (iii) that is levying at its maximum
tax rate, (iv) whose total equalized assessed valuation has
declined 20% in the prior 2 years, (v) in which 80% or more of
its students receive free or reduced-price lunch, and (vi) that
had an equalized assessed valuation of less than $207 million
but more than $203 million in the 2011 levy year may annually,
until July 1, 2016, transfer money from any fund of the
district, other than the Illinois Municipal Retirement Fund and
the Bonds and Interest Fund, to the educational fund, the
operations and maintenance fund, or the transportation fund of
the district by proper resolution following a public hearing

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set by the school board or the president of the school board,
with notice as provided in subsection (a) of this Section, so
long as the district meets the qualifications set forth in this
subsection (b) on the effective date of this amendatory Act of
the 98th General Assembly even if the district does not meet
those qualifications at the time a given transfer is made.
(Source: P.A. 98-26, eff. 6-21-13; 98-131, eff. 1-1-14.)
Section 99. Effective date. This Act takes effect upon
becoming law.