SB 2071 — SCHOOL CONSTRUCTION-BONDS

*LRB09517117NHT45405b* SB2071 95THEngrossed GENERALLRB095 ASSEMBLY17117 StateNHT of45405 Illinoisb andAN 2008ACT SB2071concerning Introducededucation. 2/14/2008, by Sen.

David Koehler SYNOPSIS AS INTRODUCED:

ILCS 5/17-2.11 from Ch.

122, par.

17-2.11 ILCS 5/19-1 from Ch.

122, par.

19-1 ILCS 230/5-25 ILCS 230/5-35 Amends the School Code and the School Construction Law.

In a Section concerning a school board’s power to levy a tax or borrow money and issue bonds for fire prevention, safety, energy conservation, disabled accessibility, school security, and specified repair purposes, makes changes concerning a school district’s authority to replace a school building or build additions to replace portions of a building.

With respect to one of the exceptions to a school district’s debt limitation, allows additional indebtedness by the execution of a lease with a public building commission;

makes related changes.

Removes references that limit provisions to just the Chicago school district with respect to (i) the prohibition on the State Board of Education and the Capital Development Board establishing standards that disapprove or otherwise establishing limitations that restrict the eligibility of a school district for a school construction project grant based on certain facts and (ii) the authority of a school district to use school construction project grants for certain purposes.

LRB095 17117 NHT 45405 b FISCAL NOTE ACT MAY APPLY A BILL FOR SB2071 LRB095 17117 NHT 45405 b AN ACT concerning education.

or 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 SB2071 Engrossed - 2 - LRB095 17117 NHT 45405 b or amendments thereto authorized by Section 2-3.12 of this Act;

or if a SB2071 Engrossed - 3 - LRB095 17117 NHT 45405 b 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:

(a) When there are not sufficient funds available in the operations and maintenance fund of the 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 regulations SB2071 Engrossed - 4 - LRB095 17117 NHT 45405 b adopted by the State Board of Education to make such alterations, repairs, or reconstruction, or to purchase and install such permanent fixed equipment so ordered or determined as necessary.

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 SB2071 Engrossed - 5 - LRB095 17117 NHT 45405 b the replacement costs to be paid for from the proceeds of bonds issued pursuant to this Section.

SB2071 Engrossed - 6 - LRB095 17117 NHT 45405 b 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.

SB2071 Engrossed - 7 - LRB095 17117 NHT 45405 b 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.

SB2071 Engrossed - 8 - LRB095 17117 NHT 45405 b 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.

When the purposes for which the bonds are issued have been SB2071 Engrossed - 9 - LRB095 17117 NHT 45405 b 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.

No school districts maintaining grades K through 8 or 9 through 12 shall become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding 6.9% on the value of the taxable property therein to be ascertained by the last assessment for State and county taxes or, until January 1, 1983, if greater, the sum that is produced by multiplying the school district’s 1978 SB2071 Engrossed - 10 - LRB095 17117 NHT 45405 b equalized assessed valuation by the debt limitation percentage in effect on January 1, 1979, previous to the incurring of such indebtedness.

Moreover, no partial elementary unit district, as defined in Article 11E of this Code, shall become indebted on account of bonds issued by the district for high SB2071 Engrossed - 11 - LRB095 17117 NHT 45405 b school purposes in the aggregate exceeding 6.9% of the value of the taxable property of the entire district, to be ascertained by the last assessment for State and county taxes, nor shall the district become indebted on account of bonds issued by the district for elementary purposes in the aggregate exceeding 6.9% of the value of the taxable property for that portion of the district included in the elementary and high school classification, to be ascertained by the last assessment for State and county taxes.

(b) Notwithstanding the debt limitation prescribed in subsection (a) of this Section, additional indebtedness may be incurred in an amount not to exceed the estimated cost of acquiring or improving school sites or constructing and equipping additional building facilities under the following SB2071 Engrossed - 12 - LRB095 17117 NHT 45405 b conditions:

The ballot for such proposition shall state what percentage of the equalized assessed valuation will be outstanding in SB2071 Engrossed - 13 - LRB095 17117 NHT 45405 b bonds if the proposed issuance of bonds is approved by the voters;

In no event shall the indebtedness incurred pursuant to this subsection (b) and the existing indebtedness of the school SB2071 Engrossed - 14 - LRB095 17117 NHT 45405 b district exceed 15% of the value of the taxable property therein to be ascertained by the last assessment for State and county taxes, previous to the incurring of such indebtedness or, until January 1, 1983, if greater, the sum that is produced by multiplying the school district’s 1978 equalized assessed valuation by the debt limitation percentage in effect on January 1, 1979.

(d) Notwithstanding the debt limitation prescribed in subsection (a) of this Section, a school district that meets all the criteria set forth in paragraphs (1) and (2) of this subsection (d) may incur an additional indebtedness in an amount not to exceed $4,500,000, even though the amount of the additional indebtedness authorized by this subsection (d), when incurred and added to the aggregate amount of indebtedness SB2071 Engrossed - 15 - LRB095 17117 NHT 45405 b of the district existing immediately prior to the district incurring the additional indebtedness authorized by this subsection (d), causes the aggregate indebtedness of the district to exceed the debt limitation otherwise applicable to that district under subsection (a):

(2) The bonds issued by the school district as provided in paragraph (1) above are issued for the purposes of construction by the school district of a new school building pursuant to Section 17-2.11, to replace an existing school building that, because of mine subsidence damage, is closed as of the end of the 1992-93 school year pursuant to action of the regional superintendent of schools of the educational service region in which the district is located under Section 3-14.22 or are issued for the purpose of increasing the size of, or providing for additional functions in, the new school building being SB2071 Engrossed - 16 - LRB095 17117 NHT 45405 b constructed to replace a school building closed as the result of mine subsidence damage, or both such purposes.

Notwithstanding the provisions of subsection (a) of this Section or of any other law, a school district that has availed SB2071 Engrossed - 17 - LRB095 17117 NHT 45405 b itself of the provisions of this subsection (f) prior to July 22, 2004 (the effective date of Public Act 93-799) may also issue bonds approved by referendum up to an amount, including existing indebtedness, not exceeding 25% of the equalized assessed value of the taxable property in the district if all of the conditions set forth in items (1), (2), and (3) of this subsection (f) are met.

(ii) At the time the resolution authorizing the issuance of the bonds is adopted, the cost of constructing a new school building to replace the existing school SB2071 Engrossed - 18 - LRB095 17117 NHT 45405 b building is less than 60% of the cost of repairing the existing school building.

SB2071 Engrossed - 19 - LRB095 17117 NHT 45405 b (i) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 1998, a community unit school district maintaining grades K through 12 may issue bonds up to an amount, including existing indebtedness, not exceeding 27% of the equalized assessed value of the taxable property in the district, if all of the following conditions are met:

SB2071 Engrossed - 20 - LRB095 17117 NHT 45405 b (i) The school district has an equalized assessed valuation for calendar year 1995 of less than $140,000,000 and a best 3 months average daily attendance for the 1995-96 school year of at least 2,800;

(k) Notwithstanding the debt limitation prescribed in subsection (a) of this Section, a school district that meets all the criteria set forth in paragraphs (1) through (4) of this subsection (k) may issue bonds to incur an additional indebtedness in an amount not to exceed $4,000,000 even though the amount of the additional indebtedness authorized by this subsection (k), when incurred and added to the aggregate amount of indebtedness of the school district existing immediately prior to the school district incurring such additional SB2071 Engrossed - 21 - LRB095 17117 NHT 45405 b indebtedness, causes the aggregate indebtedness of the school district to exceed or increases the amount by which the aggregate indebtedness of the district already exceeds the debt limitation otherwise applicable to that school district under subsection (a):

(l) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 2000, a school district maintaining grades kindergarten through 8 may issue bonds up to an amount, including existing indebtedness, not exceeding 15% of the equalized assessed value of the taxable property in the district if all of the following SB2071 Engrossed - 22 - LRB095 17117 NHT 45405 b conditions are met:

(iii) The bonds are issued for the construction of a SB2071 Engrossed - 23 - LRB095 17117 NHT 45405 b new elementary school building to replace an existing multi-level elementary school building of the school district that is not handicapped accessible at all levels and parts of which were constructed more than 75 years ago;

(i) The school district applies to the State Board of SB2071 Engrossed - 24 - LRB095 17117 NHT 45405 b Education for a school construction project grant and submits a district facilities plan in support of its application pursuant to Section 5-20 of the School Construction Law.

(v) The voters of the district approve a proposition SB2071 Engrossed - 25 - LRB095 17117 NHT 45405 b for the issuance of the bonds at a referendum held after the criteria specified in paragraphs (i) and (iii) of this subsection (n) are met.

(ii) the bonds are issued to purchase school sites, build and equip a new high school, build and equip a new junior high school, build and equip 5 new elementary schools, and make technology and other improvements and SB2071 Engrossed - 26 - LRB095 17117 NHT 45405 b additions to existing schools;

(iii) At the time of the sale of the bonds, the board of education determines by resolution that the project is SB2071 Engrossed - 27 - LRB095 17117 NHT 45405 b needed because of expanding growth in the school district and a projected enrollment increase.

SB2071 Engrossed - 28 - LRB095 17117 NHT 45405 b (v) The principal amount of the bonds, including existing indebtedness, does not exceed 25% of the equalized assessed value of the taxable property in the district.

(v) The principal amount of the bonds, including SB2071 Engrossed - 29 - LRB095 17117 NHT 45405 b existing indebtedness, does not exceed 20% of the equalized assessed value of the taxable property in the district.