2005 Illinois 105 ILCS 5/      School Code. Article 11D - School District Conversion


      (105 ILCS 5/Art. 11D heading)
ARTICLE 11D. SCHOOL DISTRICT CONVERSION

    (105 ILCS 5/11D‑1) (from Ch. 122, par. 11D‑1)
    Sec. 11D‑1. Eligible school districts. Two or more contiguous unit school districts or one or more unit school districts and one or more high school districts, all of which are contiguous, may, under the provisions of this Article, dissolve and form a single new high school district and new elementary school districts which are based upon the boundaries of the dissolved unit school districts. No existing school district involved in such a proposition may have more than 600 pupils enrolled in grades 9 through 12 unless a size waiver is granted by the State Superintendent of Education based upon evidence presented which demonstrates that permitting such a district to be involved in the proposition would significantly increase the educational opportunities available to the affected pupils. No petition may be filed under the provisions of this Article which includes territory described in a petition filed under a different provision of this Code.
(Source: P.A. 86‑1334.)

    (105 ILCS 5/11D‑2) (from Ch. 122, par. 11D‑2)
    Sec. 11D‑2. Petition filing; notice; hearing; decision. A petition shall be filed with the regional superintendent of the region in which the territory described in the petition or that part of the territory containing the greater percent of equalized assessed valuation is situated, signed by at least 50 voters or 10% of the voters, whichever is less, residing in each of the affected school districts included in the proposal, or such petition may be filed by the board of education of each affected district. The petition shall (1) request the submission of the proposition at a regular scheduled election for the purpose of voting for or against the dissolution of the named school districts and the formation of a new high school and elementary school districts; (2) describe the territory comprising the proposed districts; (3) set forth the maximum tax rates for educational, operations and maintenance, pupil transportation, and fire prevention and safety purposes that each of the proposed districts shall be authorized to levy; (4) set forth the manner in which the supplementary State deficit difference payment to be made under part (l) of Sec. 11D‑11 is to be allocated among the new high school and elementary school districts proposed to be formed; and (5) designate a committee of 10 of the petitioners, any 7 of whom may at any time, prior to the final decision of the regional superintendent, amend the petition in all respects and make binding stipulations on behalf of all petitioners as to any question with respect to the petition or hearing, and the regional superintendent may accept such stipulation instead of evidence or proof of the matter stipulated, which committee of petitioners may stipulate to accountings or waiver thereof between school districts; however, the regional superintendent may refuse to accept such stipulation. Those designated as the Committee of Ten shall serve in such capacity until such time as the regional superintendent determines that, because of death, resignation, transfer of residency from the territory, failure to qualify or for any other reason, the office of a particular member of the Committee is vacant. Failure of a person designated as a member of the Committee of Ten to sign the petition shall not disqualify such person as a member thereof, and such person may sign the petition at any time prior to final disposition of the petition and the conclusion of the proceedings to form the new school districts, including all litigation pertaining to the petition or proceedings. Upon determination by the regional superintendent that such vacancies exist, he shall so declare such vacancies and shall notify the remaining members to appoint a petitioner or petitioners, as the case may be, to fill the vacancies in the Committee of Ten so designated. Such appointment by the Committee of Ten of any such new membership shall be made by a simple majority vote of the designated remaining members. The Committee of Ten shall act, unless otherwise herein specified, by majority vote of the membership. The Committee of Ten may voluntarily dismiss their petition at any time before the final decision of the regional superintendent.
    The petition may request that if the proposition to create new high school and elementary school districts is submitted to the voters at the consolidated election which occurs in April of odd‑numbered years, at the general primary election which occurs in March of even‑numbered years, at the nonpartisan election which occurs in November of odd‑numbered years, or at the general election which occurs in November of even‑numbered years, that at that same election there be elected on separate ballots a board of education for each of the proposed new districts. Any election of board members at the same election at which the proposition to create the districts to be served by those boards is submitted to the voters shall proceed under the supervision of the Regional Superintendent as provided in Section 11D‑6.
    The petition may also request that the referendum at which the proposition shall be submitted include a proposition on a separate ballot authorizing the issuance of bonds by one or more of the districts when organized, in accordance with this Act. The principal amount of the bonds and the purposes of issuance shall be stated in such petition and in all notices and propositions submitted thereunder. The petition shall also provide for the division of assets and liabilities to be allocated to the proposed new school districts.
    Upon the filing of a petition with the regional superintendent of the region in which the greater portion of the equalized assessed valuation of the territory described in the petition lies, the regional superintendent shall cause a copy of such petition to be given to each board of any district involved in the proposed formation of the new districts and shall cause a notice thereof to be published at least once each week for 3 successive weeks in at least one newspaper having general circulation within the area of the territory of the proposed districts. The notice shall state when and to whom the petition was presented, the description of the territory of the proposed districts, if requested in the petition a statement of the proposition to issue bonds and indicating the amount and purpose thereof, and the day on which the hearing upon the petition will be held. Not more than 30 days after the publication of notice the regional superintendent shall hold a hearing on the petition.
    No petition filed under this Article and no referendum held pursuant to any petition so filed shall be null and void or invalidated or deemed in noncompliance with the Election Code because of the failure to publish notice of intention to file the petition or to attach to the petition an affidavit attesting to the publication of that notice as required under subsection (g) of Section 28‑2 of the Election Code for petitions that are not filed under Article 7A, 11A, 11B or 11D of the School Code.
    Upon the regional superintendent determining that the petition, as filed or amended, is proper and is in compliance with any applicable petition requirements of the Election Code, he shall hear evidence as to the school needs and conditions of the territory and in the area within and adjacent thereto and take into consideration the division of funds and assets which will result from the organization of the districts, and shall determine whether it is for the best interests of the schools of the area and the educational welfare of the pupils therein that such district be organized.
    At the hearing, any resident in the proposed district or any district affected thereby may appear in support of the petition or to object thereto. The regional superintendent may adjourn the hearing from time to time. Within 14 days after the conclusion of the hearing the regional superintendent shall make a decision either approving or denying the petition. Upon the regional superintendent approving or denying the petition he shall submit the petition and all evidence submitted to the State Superintendent of Education who shall, within 30 days after the decision of the regional superintendent, approve or deny the petition according to the following criteria:
    He shall review the entire record of the proceedings had before the regional superintendent, including the transcript of said proceedings, and based upon a review of the same shall take into consideration:
        (1) whether the proposed districts will have
    
sufficient size (pupil enrollment) and financial resources (assessed valuation) to provide and maintain a recognized educational program;
        (2) whether the proposed school districts are for
    
the best interests of the schools of the area and the educational welfare of the pupils therein; and
        (3) whether the territory for the proposed school
    
districts is compact and contiguous for school purposes.
    If the State Superintendent of Education denies the petition the reasons for such denial shall be communicated to appropriate groups, agencies or instrumentalities representing the petitioners and no further proceedings shall be had.
(Source: P.A. 86‑1334; 87‑10; 87‑185; 87‑839; 87‑1270.)

    (105 ILCS 5/11D‑3) (from Ch. 122, par. 11D‑3)
    Sec. 11D‑3. Administrative review. The decision of the State Superintendent shall be deemed an "administrative decision" as defined in Section 3‑101 of the Administrative Review Law, and any resident who appears at the hearing or any petitioner or board of education of any district affected may within 35 days after a copy of the decision sought to be reviewed was served by registered mail upon the party affected thereby apply for a review of such decision in accordance with the Administrative Review Law, and all amendments and modifications thereof and the rules adopted pursuant thereto.
    The commencement of any action for review shall operate as a supersedeas, and no further proceedings shall be had until final disposition of such review. The circuit court of the county in which the petition is filed with the regional superintendent shall have sole jurisdiction to entertain a complaint for such review.
(Source: P.A. 86‑1334.)

    (105 ILCS 5/11D‑4) (from Ch. 122, par. 11D‑4)
    Sec. 11D‑4. Holding of election.
    (a) Elections provided by this Article shall be conducted in accordance with the general election law.
    (b) The notice shall be in substantially the following form:
NOTICE OF REFERENDUM TO DISSOLVE CERTAIN SCHOOL
DISTRICTS AND ESTABLISH CERTAIN NEW SCHOOL DISTRICTS         NOTICE is hereby given that on (insert date), a
    
referendum will be held in part(s) of ..... county (counties) for the purpose of voting for or against the proposition to dissolve (here name the districts to be dissolved) and to establish new school districts for the following described territory: (Here describe territory by districts, numbering them.)
        The election is called and will be held pursuant to
    
an order of the Regional Superintendent dated on (insert date), which order states that the tax rates for educational, operations and maintenance, pupil transportation, and fire prevention and safety purposes, respectively, for the proposed new school districts shall be as follows (stating the following separately for each of the new school districts proposed to be established):
        For .... (here state elementary or high school)
    
District No. ...., tax rates of ..... for educational purposes, ..... for operations and maintenance purposes, ... for pupil transportation purposes, and ... for fire prevention and safety purposes, and which rates shall constitute the tax rates for .... (here state elementary or high school) District No. ...., if a majority of the voters voting on the proposition at the referendum vote in favor thereof.
        Dated (insert date).
        Regional Superintendent of Schools
        ..................................
    (c) Whenever the members of a board of education of a high school or elementary school district proposed to be established are to be elected at the same election at which the proposition to establish that district is to be submitted to the voters, that fact shall be included in the notice.
(Source: P.A. 91‑357, eff. 7‑29‑99.)

    (105 ILCS 5/11D‑5) (from Ch. 122, par. 11D‑5)
    Sec. 11D‑5. Ballots. The ballot shall be in substantially the following form. If the petition requests the submission of a proposition for the issuance of bonds such question shall be submitted to the voters at such referendum on a separate ballot.

OFFICIAL BALLOT Shall (here name the districts
to be dissolved) be dissolved and (here name
the districts to be established)
be established with                                YES
authority to levy
taxes (here repeat for each new
district by name)
at the rate of ...% for
educational purposes, ...%                   
for operations and maintenance
purposes, ...% for pupil transportation
purposes, and ...% for fire
prevention and safety purposes,                     NO
each upon all the taxable property of
the district at the value thereof,
as equalized or assessed by the
Department of Revenue, be established?

(Source: P.A. 86‑1334.)

    (105 ILCS 5/11D‑6) (from Ch. 122, par. 11D‑6)
    Sec. 11D‑6. Passage requirements. If a majority of the electors voting at such election in each affected school district vote in favor of the proposition, the proposition shall be deemed to have passed. Unless the board of education of a new high school or elementary school district is elected at the same election at which the proposition establishing that district is deemed to have passed, the regional superintendent of schools shall order an election to be held on the next regularly scheduled election date for the purpose of electing a board of education for that district. In either event, the board of education elected for each of the new high school and elementary school districts created under this Article shall consist of 7 members, which shall have the terms and the powers and duties of school boards as defined in Article 10. Election of board members for the new high school district may be (i) on an at‑large basis, (ii) with board members representing each of the forming elementary school districts, or (iii) a combination of both. The format for the election of the new high school board must be defined in the petition submitted to the voters. When 4 or more unit school districts are involved and a combination of board members representing each of the forming elementary school districts and at‑large formats are used, one member must be elected from each of the forming elementary school districts. The remaining members may be elected on an at‑large basis, provided that none of the underlying elementary school districts have a majority on the resulting high school board. When 3 unit school districts are involved and a combination of board members representing each of the forming elementary school districts and at‑large formats are used, 2 members must be elected from each of the forming elementary school districts. The remaining member must be elected at large. Nomination papers filed under this Section are not valid unless the candidate named therein files with the regional superintendent a receipt from the county clerk showing that the candidate has filed a statement of economic interests as required by the Illinois Governmental Ethics Act. Such receipt shall be so filed either previously during the calendar year in which his nomination papers were filed or within the period for the filing of nomination papers in accordance with the general election law. The regional superintendent shall perform the election duties assigned by law to the secretary of a school board for such election, and shall certify the officers and candidates therefor pursuant to the general election law.
(Source: P.A. 93‑934, eff. 8‑13‑04.)

    (105 ILCS 5/11D‑7) (from Ch. 122, par. 11D‑7)
    Sec. 11D‑7. Effective date of change. In case a petition is filed for the creation of new school districts under this Article after August 1, and the change is granted and approved at election and no appeal is taken, such change shall become effective after the time for appeal has run for the purpose of all elections; however, the change shall not affect the administration of the schools until July 1 following the date board of education elections are held for the new districts, and the school boards of the districts as they existed prior to the change shall exercise the same power and authority over such territory until such date; however, new districts shall be permitted to organize and elect officers within the time prescribed by the general election law. Additionally, between the date of such organization and election of officers and the date on which the new district takes effect for all purposes, the new district shall also be permitted, with the stipulation of the districts from which the new district is formed and the approval of the regional superintendent to:
        1) Establish the tax levy for the new district, in
    
lieu of the levies by the districts from which the new district is formed, within the time generally provided by law and in accordance with Section 11D‑12. The funds produced by such levy shall be transferred to the new district as generally provided by law at such time as they are received by the county collector.
        2) Enter into agreements with depositories and
    
direct the deposit and investment of any funds received from the county collector or any other source, all as generally provided by law.
        3) Conduct a search for the superintendent of the
    
new district and enter into a contract with the person selected to serve as the superintendent of the new district in accordance with the provisions of the School Code generally applicable to the employment of the superintendent.
        4) Engage the services of accountants, architects,
    
attorneys and other consultants, including but not limited to consultants to assist in the search for the superintendent.
        5) Plan for the transition from the administration
    
of the schools by the districts from which the new district is formed.
        6) Bargain collectively, pursuant to the Illinois
    
Educational Labor Relations Act, with the certified exclusive bargaining representative or certified exclusive bargaining representatives of the new district's employees.
        7) Expend the funds received from the levy in order
    
to permit any of the districts from which the new district is formed to meet payroll and other essential operating expenses until the new district takes effect for all purposes.
        8) Expend the funds received from the levy, and any
    
funds received from the districts from which the new district is formed, in the exercise of the foregoing powers.
        9) Issue bonds pursuant to and in accordance with
    
all of the requirements of Section 17‑2.11, levy taxes upon all taxable property within the new district to pay the principal of and interest on those bonds as provided in that Section, expend the proceeds of the bonds and enter into any necessary contracts for the work financed therewith as authorized by that Section and other applicable law, and avail of the provisions of other applicable law, including the Omnibus Bond Acts, in connection with the issuance of those bonds.
    After the granting of a petition has become final and approved at election, the date when the change shall become effective for purposes of administration and attendance may be accelerated or postponed by stipulation of each of the school boards of each district affected and approved by the regional superintendent with which the original petition is required to be filed.
(Source: P.A. 87‑1215; 88‑6.)

    (105 ILCS 5/11D‑8) (from Ch. 122, par. 11D‑8)
    Sec. 11D‑8. Map showing change; filed. Within 30 days after new school districts have been created under any of the provisions of this Article, the regional superintendent of schools of any county involved shall make and file with the county clerk of his county a map of any districts involved in the creation of the new districts, whereupon the county clerks shall extend taxes against the territory in accordance therewith.
(Source: P.A. 86‑1334.)

    (105 ILCS 5/11D‑9) (from Ch. 122, par. 11D‑9)
    Sec. 11D‑9. Bonded indebtedness; tax rate. Whenever new districts are created under any of the provisions of this Article, each such district as it exists on and after such action shall assume the financial obligations to the Capital Development Board pursuant to Section 35‑15 of The School Code and the Capital Development Board Act, of all the territory included therein after such change, and the outstanding bonded indebtedness shall be treated as provided in this Section and in Section 19‑29 of this Act. The tax rate for bonded indebtedness shall be determined in the manner provided in Section 19‑7 of this Act, and notwithstanding the creation of any such new districts, the county clerk or clerks shall annually extend taxes for each outstanding bond issue against all the taxable property that was situated within the boundaries of each district as such boundaries existed at the time of the issuance of each such bond issue, regardless of whether such property is still contained in that same district at the time of the extension of such taxes by the county clerk or clerks.
(Source: P.A. 86‑1334.)

    (105 ILCS 5/11D‑10) (from Ch. 122, par. 11D‑10)
    Sec. 11D‑10. Teachers in contractual continued service. Teachers having tenure with the districts at the time of their dissolution shall be transferred as follows:
        (1) If, for the preceding 5 years, a teacher was
    
employed full time in grades 9 to 12, then such teacher shall be transferred to the new high school district.
        (2) If, for the preceding 5 years, a teacher was
    
employed full time in grades K to 8, then such teacher shall be transferred to a newly created successor elementary district.
        (3) If a full time teacher does not fall into either
    
of the above categories, then the teacher shall be transferred upon the request of the teacher to either the newly created high school district or to a newly created elementary district that succeeds the unit district where the teacher was employed.
    Contractual continued service and seniority shall be transferred in accordance with the provisions of Section 24‑12.
(Source: P.A. 86‑1334.)

    (105 ILCS 5/11D‑11) (from Ch. 122, par. 11D‑11)
    Sec. 11D‑11. Supplementary State aid payments. For new school districts created under this Article, the following payments shall be made from appropriations made for such purposes:
    (1) A supplementary State deficit difference payment shall be made based on the method set forth in Section 18‑8.3, under which district deficits are calculated by totaling each previously existing district's audited fund balances in the educational fund, working cash fund, operations and maintenance fund, and transportation fund as of June 30 prior to the referendum for the conversion to elementary districts and the formation of the new high school districts. In the first year of the new districts, the State shall make a one‑time supplementary payment equal to the sum of the differences between the deficit of the previously existing district with the smallest deficit and the deficits of each of the other previously existing districts. (A district with a combined balance among the four funds that is positive will be considered to have a deficit of zero.) The supplementary payment shall be allocated among the newly formed high school and elementary school districts in the manner provided by the petition for the formation of such districts, in the form in which such petition is approved by the State Superintendent of Education under Section 11D‑2.
    (2) Following the formation of a new elementary district or districts and a new high school district pursuant to Article 11D, a supplementary State aid reimbursement shall be paid to the new districts equal to the sum of $4,000 for each certified employee who is employed by the district on a full‑time basis. This reimbursement shall be calculated in accordance with Section 18‑8.5 of this Act.
    (3) If in their first year of existence the newly created elementary districts and the newly created high school district qualify for less general State aid under Section 18‑8 than would have been payable under that Section for that same year to the previously existing districts, then a supplementary payment equal to that difference shall be made for the first 3 years of existence of the newly created districts. The aggregate amount of each such supplementary payment shall be allocated among the newly created districts in the proportion that the deemed pupil enrollment in each such district during its first year of existence bears to the actual aggregate pupil enrollment in all such districts during their first year of existence. For purposes of each such allocation: (i) the deemed pupil enrollment of the newly created high school district shall be an amount equal to its actual pupil enrollment for its first year of existence multiplied by 1.25; and (ii) the deemed pupil enrollment of each newly created elementary school district shall be an amount equal to its actual pupil enrollment for its first year of existence reduced by an amount equal to the product obtained when the amount by which the newly created high school district's deemed pupil enrollment exceeds its actual pupil enrollment for its first year of existence is multiplied by a fraction, the numerator of which is the actual pupil enrollment of the newly created elementary school district for its first year of existence, and the denominator of which is the actual aggregate pupil enrollment of all such newly created elementary school districts for their first year of existence. The aggregate amount of each supplementary payment under this paragraph and the amount thereof to be allocated to the newly created districts shall be computed by the State Board of Education on the basis of pupil enrollment and other data which shall be certified to the State Board of Education, on forms which it shall provide for that purpose, by the regional superintendent of schools for each educational service region in which the newly created districts are located.
    (4) For each new high school district formed under Article 11D, the State shall make a supplementary payment for 3 years equal to the difference between the sum of the salaries earned by each certified member of the new high school district while employed in one of the previously existing districts and the sum of the salaries those certified members would have been paid if placed on the salary schedule of the previously existing district with the highest salary schedule.
(Source: P.A. 88‑555, eff. 7‑27‑94.)

    (105 ILCS 5/11D‑12) (from Ch. 122, par. 11D‑12)
    Sec. 11D‑12. Limitation on successive petitions. No unit or high school district that is involved in any proceeding under this Article to be dissolved and formed into a new high school district and new elementary school districts, and that is not by those proceedings so dissolved and formed into a new high school district and new elementary school districts, shall be again involved in proceedings under this Article to be dissolved and formed into a new high school district and new elementary school districts for at least two years after final determination of such first proceeding unless during that 2 year period a petition filed is substantially different than any other previously filed petition during the previous 2 years or if a school district involved is placed on academic watch status or the financial watch list by the State Board of Education or is certified as being in financial difficulty during that 2 year period.
(Source: P.A. 93‑470, eff. 8‑8‑03.)

    (105 ILCS 5/11D‑13)
    Sec. 11D‑13. Levy of certain taxes. The boards of education of the new high school and elementary districts may levy taxes for educational, operations and maintenance, pupil transportation, and fire prevention and safety purposes, respectively, up through, but not exceeding, the rates specified in the petition, which rates may thereafter be increased or decreased in the same manner and within the limits provided by Sections 17‑2 through 17‑7 as now or hereafter amended. The boards of education may further levy taxes for other purposes as generally permitted by law.
    If the election of the boards of education of the new districts does not occur in the same calendar year that the proposition to create the new districts is approved, the districts from which the new districts are formed, by joint agreement and with the approval of the regional superintendent, shall be permitted to levy in the same calendar year in which the creation of the new districts is approved at the rates specified in the petition. The county clerks shall extend any such levy notwithstanding any law that requires adoption of a budget before extension of the levy.
    If the election of the boards of education of the new districts occurs at the general election or the nonpartisan election and the boards of education make their initial levies in that same year, the county clerk shall extend such levies notwithstanding any other law which requires the adoption of a budget before the clerk may extend such levy.
(Source: P.A. 88‑45; 89‑129, eff. 7‑14‑95.)

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