SB 835 — LOCAL GOVERNMENT-TECH

SB0835 EngrossedEnrolled LRB095 05542 HLH 25632 b AN ACT concerning local government.

SB0835 EngrossedEnrolled - 2 - LRB095 05542 HLH 25632 b (a) Alternate bonds shall be issued for a lawful corporate purpose.

If no petition is filed with the clerk or secretary within 30 days of publication of the authorizing SB0835 EngrossedEnrolled - 3 - LRB095 05542 HLH 25632 b ordinance and notice, the alternate bonds shall be authorized to be issued.

(c) To the extent payable from enterprise revenues, such SB0835 EngrossedEnrolled - 4 - LRB095 05542 HLH 25632 b revenues shall have been determined by the governing body to be sufficient to provide for or pay in each year to final maturity of such alternate bonds all of the following:

Notwithstanding any other provision of this Section, a backdoor referendum is not required if the proceeds backing the debt are SB0835 EngrossedEnrolled - 5 - LRB095 05542 HLH 25632 b realized from revenues obtained from the County School Facility Occupation Tax Law under Section 5-1006.7 of the Counties Code.

If the governmental unit enters into an agreement in connection with such alternate bonds at the time of issuance thereof pursuant to which the governmental unit agrees for a specified period of time to pay an amount calculated at an agreed-upon rate or index based on a notional amount and the other party agrees to pay the governmental unit an amount calculated at an agreed-upon rate or index based on such notional amount, interest shall be projected for such specified period of time on the basis of the agreed-upon rate payable by the SB0835 EngrossedEnrolled - 6 - LRB095 05542 HLH 25632 b governmental unit.

(e) The enterprise revenues or revenue source, as SB0835 EngrossedEnrolled - 7 - LRB095 05542 HLH 25632 b applicable, shall be in fact pledged to the payment of the alternate bonds;

The intent is that such enterprise revenues or revenue source, as applicable, shall be sufficient and shall be applied to the payment of debt service on such SB0835 EngrossedEnrolled - 8 - LRB095 05542 HLH 25632 b alternate bonds so that taxes need not be levied, or if levied need not be extended, for such payment.

Once issued, alternate bonds shall be and forever remain until paid or defeased the general obligation of the SB0835 EngrossedEnrolled - 9 - LRB095 05542 HLH 25632 b governmental unit, for the payment of which its full faith and credit are pledged, and shall be payable from the levy of taxes as is provided in this Act for general obligation bonds.

This additional tax may not be imposed on the sale of food SB0835 EngrossedEnrolled - 10 - LRB095 05542 HLH 25632 b for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics.

In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and (iii) shall employ the same modes of procedure as are set forth in Sections 1 through 1o, 2 through 2-70 (in respect to all provisions contained in those Sections other than the State rate of tax), 2a through 2h, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers’ Occupation Tax Act SB0835 EngrossedEnrolled - 11 - LRB095 05542 HLH 25632 b and all provisions of the Uniform Penalty and Interest Act as if those provisions were set forth in this subsection.

This tax may not be imposed on sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by SB0835 EngrossedEnrolled - 12 - LRB095 05542 HLH 25632 b diabetics.

In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection shall (i) have the same rights, remedies, privileges, immunities, powers and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties and definition of terms, and (iii) employ the same modes of procedure as are set forth in Sections 2 (except that that reference to State in the definition of supplier maintaining a place of business in this State means the county), 2a through 2d, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate of tax), 4 (except that the reference to the State shall be to the county), 5, 7, 8 (except that the jurisdiction to which the tax is a debt to the extent indicated in that Section 8 is the county), 9 (except as to the disposition of taxes and penalties SB0835 EngrossedEnrolled - 13 - LRB095 05542 HLH 25632 b collected), 10, 11, 12 (except the reference therein to Section 2b of the Retailers’ Occupation Tax Act), 13 (except that any reference to the State means the county), Section 15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act and all provisions of the Uniform Penalty and Interest Act, as fully as if those provisions were set forth herein.

Shall (name of county) be authorized to impose a retailers’ occupation tax and a service occupation tax SB0835 EngrossedEnrolled - 14 - LRB095 05542 HLH 25632 b (commonly referred to as a "sales tax") at a rate of (insert rate) to be used exclusively for school facility purposes? The election authority must record the votes as "Yes" or "No".

The amount to be paid to each regional superintendent of schools and disbursed to him or her in accordance with 3-14.31 of the School Code, is equal to the amount (not including credit memoranda) collected SB0835 EngrossedEnrolled - 15 - LRB095 05542 HLH 25632 b from the county under this Section during the second preceding calendar month by the Department, (i) less 2% of that amount, which shall be deposited into the Tax Compliance and Administration Fund and shall be used by the Department, subject to appropriation, to cover the costs of the Department in administering and enforcing the provisions of this Section, on behalf of the county, (ii) plus an amount that the Department determines is necessary to offset any amounts that were erroneously paid to a different taxing body;

SB0835 EngrossedEnrolled - 16 - LRB095 05542 HLH 25632 b If the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, then the Department shall notify the Comptroller, who shall cause the order to be drawn for the amount specified and to the person named in the notification from the Department.

If, however, a school board issues bonds that are backed by the proceeds of the tax under this Section, then the county board may not reduce the tax rate or discontinue the tax if that rate reduction or discontinuance would inhibit the SB0835 EngrossedEnrolled - 17 - LRB095 05542 HLH 25632 b school board’s ability to pay the principal and interest on those bonds as they become due.

"School-facility SB0835 EngrossedEnrolled - 18 - LRB095 05542 HLH 25632 b purposes" also includes fire prevention, safety, energy conservation, disabled accessibility, school security, and specified repair purposes set forth under Section 17-2.11 of the School Code.

(105 ILCS 5/10-20.40 new) SB0835 EngrossedEnrolled - 19 - LRB095 05542 HLH 25632 b Sec.

Before erecting, or purchasing or remodeling such a building the board shall submit the plans and specifications respecting heating, ventilating, lighting, seating, water SB0835 EngrossedEnrolled - 20 - LRB095 05542 HLH 25632 b supply, toilets and safety against fire to the regional superintendent of schools having supervision and control over the district, for approval in accordance with Section 2-3.12.

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 SB0835 EngrossedEnrolled - 21 - LRB095 05542 HLH 25632 b 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;

or 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 purchase and installation of equipment will SB0835 EngrossedEnrolled - 22 - LRB095 05542 HLH 25632 b 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;

then in any such event, such 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 the State of Illinois, upon all the taxable property of the SB0835 EngrossedEnrolled - 23 - LRB095 05542 HLH 25632 b district at the value as assessed by the Department of Revenue at a rate not to exceed .05% per year for a period sufficient to finance such alterations, repairs, or reconstruction, upon the following conditions:

If such estimate is not approved or denied SB0835 EngrossedEnrolled - 24 - LRB095 05542 HLH 25632 b approval by the regional superintendent of schools within 3 months after the date on which it is submitted to him or her, the school board of the district may submit such estimate directly to the State Superintendent of Education for approval or denial.

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 SB0835 EngrossedEnrolled - 25 - LRB095 05542 HLH 25632 b include the same in the limitation of any other tax rate which may be extended.

If any transfer is made to the Operation and Maintenance Fund, the secretary of SB0835 EngrossedEnrolled - 26 - LRB095 05542 HLH 25632 b 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.

Upon the filing in the office of the county clerk of the county SB0835 EngrossedEnrolled - 27 - LRB095 05542 HLH 25632 b 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.

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 SB0835 EngrossedEnrolled - 28 - LRB095 05542 HLH 25632 b 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.