There is a newer version of the Illinois Compiled Statutes
2010 Illinois Code
CHAPTER 105 SCHOOLS
105 ILCS 5/ School Code.
Article 1F - Downstate School Finance Authority for Elementary Districts
(105 ILCS 5/1F‑1) Sec. 1F‑1. Short title. This Article may be cited as the Downstate School Finance Authority for Elementary Districts Law. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑5) Sec. 1F‑5. Findings; purpose; intent. (a) The General Assembly finds all of the following: (1) A fundamental goal of the people of this State, | ||
| ||
(2) A sound financial structure is essential to the | ||
| ||
(3) To promote the financial integrity of districts, | ||
| ||
(b) It is the purpose of this Article to provide a secure financial basis for the continued operation of public schools. The intention of the General Assembly, in creating this Article, is to establish procedures, provide powers, and impose restrictions to ensure the financial and educational integrity of the public schools, while leaving principal responsibility for the educational policies of public schools to the boards of education within the State, consistent with the requirements for satisfying the public policy and purpose set forth in this Article. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑10) Sec. 1F‑10. Definitions. As used in this Article: "Authority" means a School Finance Authority created under this Article. "Bonds" means bonds authorized to be issued by the Authority under Section 1F‑65 of this Code. "Budget" means the annual budget of the district required under Section 17‑1 of this Code, as in effect from time to time. "Chairperson" means the Chairperson of the Authority. "District" means any elementary school district having a population of not more than 500,000 that prior to December 1, 2002 has had a Financial Oversight Panel established for the district under Section 1B‑4 of this Code following the district's petitioning of the State Board of Education for the creation of the Financial Oversight Panel. "Financial plan" means the financial plan of the district to be developed pursuant to this Article, as in effect from time to time. "Fiscal year" means the fiscal year of the district. "State Board" means the State Board of Education. "State Superintendent" means the State Superintendent of Education. "Obligations" means bonds and notes of the Authority. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑15) Sec. 1F‑15. Establishment of Authority; duties of district. (a) A Financial Oversight Panel created under Article 1B of this Code for a district may petition the State Board for the establishment of a School Finance Authority for the district. The petition shall cite the reasons why the creation of a School Finance Authority for the district is necessary. The State Board may grant the petition upon determining that the approval of the petition is in the best educational and financial interests of the district. The State Board may establish an Authority without a petition from a Financial Oversight Panel. In any event, an Authority may only be established by resolution of the State Board within 5 days after the effective date of this amendatory Act of the 92nd General Assembly. (b) Upon establishment of the Authority, all of the following shall occur: (1) There is established a body both corporate and | ||
| ||
(2) The Financial Oversight Panel is abolished, and | ||
| ||
(3) The duties and obligations of the district under | ||
| ||
(c) In the event of a conflict between the provisions of this Article and the provisions of Article 1B of this Code, the provisions of this Article control. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑25) Sec. 1F‑25. General powers. The purposes of the Authority shall be to exercise financial control over the district and to furnish financial assistance so that the district can provide public education within the district's jurisdiction while permitting the district to meet its obligations to its creditors and the holders of its debt. Except as expressly limited by this Article, the Authority shall have all powers granted to a voluntary or involuntary Financial Oversight Panel and to a Financial Administrator under Article 1B of this Code and all other powers necessary to meet its responsibilities and to carry out its purposes and the purposes of this Article, including without limitation all of the following powers, provided that the Authority shall have no power to terminate any employee without following the statutory procedures for such terminations set forth in this Code: (1) To sue and to be sued. (2) To make, cancel, modify, and execute contracts, | ||
| ||
(3) To purchase real or personal property necessary | ||
| ||
(4) To appoint officers, agents, and employees of | ||
| ||
(5) To transfer to the district such sums of money | ||
| ||
(6) To borrow money, including without limitation | ||
| ||
(6.5) To levy all property tax levies that otherwise | ||
| ||
(7) Subject to the provisions of any contract with | ||
| ||
(8) To procure all necessary goods and services for | ||
| ||
(9) To do any and all things necessary or convenient | ||
| ||
(10) To recommend annexation, consolidation, | ||
| ||
(Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑30) Sec. 1F‑30. Chief executive officer. The Authority may appoint a chief executive officer who, under the direction of the Authority, shall supervise the Authority's staff, including the chief educational officer and the chief fiscal officer, and shall have ultimate responsibility for implementing the policies, procedures, directives, and decisions of the Authority. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑35) Sec. 1F‑35. Chief educational officer. The Authority may at a regular or special meeting find that cause exists to cancel the contract of the school district's superintendent who is serving at the time the Authority is established. If there is no superintendent, then the Authority shall, following consultation with the district, employ a chief educational officer for the district, who shall have all of the powers and duties of a school district superintendent under this Code and such other duties as may be assigned by the Authority in accordance with this Code. The chief educational officer shall report to the Authority or the chief executive officer appointed by the Authority. The district shall not thereafter employ a superintendent during the period that a chief educational officer is serving in the district. The chief educational officer shall hold a certificate with a superintendent endorsement issued under Article 21 of this Code. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑40) Sec. 1F‑40. Chief fiscal officer. The Authority may appoint a chief fiscal officer who, under the direction of the Authority, shall have all of the powers and duties of the district's chief school business official and any other duties regarding budgeting, accounting, and other financial matters that are assigned by the Authority, in accordance with this Code. The district may not employ a chief school business official during the period that the chief fiscal officer is serving in the district. The chief fiscal officer may but is not required to hold a certificate with a chief school business official endorsement issued under Article 21 of this Code. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑45) Sec. 1F‑45. Collective bargaining agreements. The Authority shall have the power to negotiate collective bargaining agreements with the district's employees in lieu of and on behalf of the district. Upon concluding bargaining, the district shall execute the agreements negotiated by the Authority, and the district shall be bound by and shall administer the agreements in all respects as if the agreements had been negotiated by the district itself. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑50) Sec. 1F‑50. Deposits and investments. (a) The Authority shall have the power to establish checking and whatever other banking accounts it may deem appropriate for conducting its affairs. (b) Subject to the provisions of any contract with or for the benefit of the holders of its obligations, the Authority may invest any funds not required for immediate use or disbursement, as provided in the Public Funds Investment Act. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑55) Sec. 1F‑55. Cash accounts and bank accounts. (a) The Authority shall require the district or any officer of the district, including the district's treasurer, to establish and maintain separate cash accounts and separate bank accounts in accordance with such rules, standards, and procedures as the Authority may prescribe. (b) The Authority shall have the power to assume exclusive administration of the cash accounts and bank accounts of the district, to establish and maintain whatever new cash accounts and bank accounts it may deem appropriate, and to withdraw funds from these accounts for the lawful expenditures of the district. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑60) Sec. 1F‑60. Financial, management, and budgetary structure. Upon direction of the Authority, the district shall reorganize the financial accounts, management, and budgetary systems of the district in whatever manner the Authority deems appropriate to achieve greater financial responsibility and to reduce financial inefficiency. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑90) Sec. 1F‑90. Tax anticipation warrants. An Authority shall have the same power to issue tax anticipation warrants as a school board under Section 17‑16 of this Code. Tax anticipation warrants are considered borrowing from sources other than the State and are subject to Section 1F‑62 of this Code. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑115) Sec. 1F‑115. State or district not liable on obligations. Obligations shall not be deemed to constitute (i) a debt or liability of the State, the district, or any political subdivision of the State or district other than the Authority or (ii) a pledge of the full faith and credit of the State, the district, or any political subdivision of the State or district other than the Authority but shall be payable solely from the funds and revenues provided for in this Article. The issuance of obligations shall not directly, indirectly, or contingently obligate the State, the district, or any political subdivision of the State or district other than the Authority to levy any form of taxation therefor or to make any appropriation for their payment. Nothing in this Section shall prevent or be construed to prevent the Authority from pledging its full faith and credit to the payment of obligations. Nothing in this Article shall be construed to authorize the Authority to create a debt of the State or the district within the meaning of the Constitution or laws of Illinois, and all obligations issued by the Authority pursuant to the provisions of this Article are payable and shall state that they are payable solely from the funds and revenues pledged for their payment in accordance with the resolution authorizing their issuance or any trust indenture executed as security therefor. The State or the district shall not in any event be liable for the payment of the principal of or interest on any obligations of the Authority or for the performance of any pledge, obligation, or agreement of any kind whatsoever that may be undertaken by the Authority. No breach of any such pledge, obligation, or agreement may impose any liability upon the State or the district or any charge upon their general credit or against their taxing power. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑120) Sec. 1F‑120. Obligations as legal investments. The obligations issued under the provisions of this Article are hereby made securities in which all public officers and bodies of this State, all political subdivisions of this State, all persons carrying on an insurance business, all banks, bankers, trust companies, savings banks, and savings associations (including savings and loan associations, building and loan associations, investment companies, and other persons carrying on a banking business), and all credit unions, pension funds, administrators, and guardians who are or may be authorized to invest in bonds or in other obligations of the State may properly and legally invest funds, including capital, in their control or belonging to them. The obligations are also hereby made securities that may be deposited with and may be received by all public officers and bodies of the State, all political subdivisions of the State, and public corporations for any purpose for which the deposit of bonds or other obligations of the State is authorized. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑130) Sec. 1F‑130. Reports. (a) The Authority, upon taking office and annually thereafter, shall prepare and submit to the Governor, General Assembly, and State Superintendent a report that includes the audited financial statement for the preceding fiscal year, an approved financial plan, and a statement of the major steps necessary to accomplish the objectives of the financial plan. (b) Annual reports shall be submitted on or before March 1 of each year. (c) The requirement for reporting to the General Assembly shall be satisfied by filing copies of the report as provided in Section 3.1 of the General Assembly Organization Act and by filing additional copies with the State Government Report Distribution Center for the General Assembly as required under subdivision (t) of Section 7 of the State Library Act. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑135) Sec. 1F‑135. Audit of Authority. The Authority shall be subject to audit in the manner provided for the audit of State funds and accounts. A copy of the audit report shall be submitted to the State Superintendent, the Governor, the Speaker and Minority Leader of the House of Representatives, and the President and Minority Leader of the Senate. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑140) Sec. 1F‑140. Assistance by State agencies, units of local government, and school districts. The district shall render such services to and permit the use of its facilities and resources by the Authority at no charge as may be requested by the Authority. Any State agency, unit of local government, or school district may, within its lawful powers and duties, render such services to the Authority as may be requested by the Authority. Upon request of the Authority, any State agency, unit of local government, or school district is authorized and empowered to loan to the Authority such officers and employees as the Authority may deem necessary in carrying out its functions and duties. Officers and employees so transferred shall not lose or forfeit their employment status or rights. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑145) Sec. 1F‑145. Property of Authority exempt from taxation. The property of the Authority is exempt from taxation. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑150) Sec. 1F‑150. Sanctions. (a) No member, officer, employee, or agent of the district may commit the district to any contract or other obligation or incur any liability on behalf of the district for any purpose if the amount of the contract, obligation, or liability is in excess of the amount authorized for that purpose then available under the financial plan and budget then in effect. (b) No member, officer, employee, or agent of the district may commit the district to any contract or other obligation on behalf of the district for the payment of money for any purpose required to be approved by the Authority unless the contract or other obligation has been approved by the Authority. (c) No member, officer, employee, or agent of the district may take any action in violation of any valid order of the Authority, may fail or refuse to take any action required by any such order, may prepare, present, certify, or report any information, including any projections or estimates, for the Authority or any of its agents that is false or misleading, or, upon learning that any such information is false or misleading, may fail promptly to advise the Authority or its agents. (d) In addition to any penalty or liability under any other law, any member, officer, employee, or agent of the district who violates subsection (a), (b), or (c) of this Section is subject to appropriate administrative discipline as may be imposed by the Authority, including, if warranted, suspension from duty without pay, removal from office, or termination of employment. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑155) Sec. 1F‑155. Abolition of Authority. The Authority shall be abolished 10 years after its creation or one year after all its obligations issued under the provisions of this Article have been fully paid and discharged, whichever comes later. However, the State Board, upon recommendation of the Authority and if no obligations are outstanding, may abolish the Authority at any time after the Authority has been in existence for 3 years. Upon the abolition of the Authority, all of its records shall be transferred to the State Board and any property of the Authority shall pass to and be vested in the State Board. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
(105 ILCS 5/1F‑160) Sec. 1F‑160. Limitations of actions after abolition; indemnification; legal representation. (a) Abolition of the Authority pursuant to Section 1F‑155 of this Code shall bar any remedy available against the Authority, its members, employees, or agents for any right or claim existing or any liability incurred prior to the abolition unless the action or other proceeding is commenced prior to the expiration of 2 years after the date of the abolition. (b) The Authority may indemnify any member, officer, employee, or agent who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that he or she was a member, officer, employee, or agent of the Authority, against expenses (including attorney's fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection with the action, suit, or proceeding) if he or she acted in good faith and in a manner that he or she reasonably believed to be in or not opposed to the best interests of the Authority and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, or conviction or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith in a manner that he or she reasonably believed to be in or not opposed to the best interest of the Authority and, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful. To the extent that a member, officer, employee, or agent of the Authority has been successful, on the merits or otherwise, in the defense of any such action, suit, or proceeding referred to in this subsection (b) or in defense of any claim, issue, or matter therein, he or she shall be indemnified against expenses, including attorney's fees, actually and reasonably incurred by him or her in connection therewith. Any such indemnification shall be made by the Authority only as authorized in the specific case, upon a determination that indemnification of the member, officer, employee, or agent is proper in the circumstances because he or she has met the applicable standard of conduct. The determination shall be made (i) by the Authority by a majority vote of a quorum consisting of members who are not parties to the action, suit, or proceeding or (ii) if such a quorum is not obtainable or, even if obtainable, a quorum of disinterested members so directs, by independent legal counsel in a written opinion. Reasonable expenses incurred in defending an action, suit, or proceeding shall be paid by the Authority in advance of the final disposition of the action, suit, or proceeding, as authorized by the Authority in the specific case, upon receipt of an undertaking by or on behalf of the member, officer, employee, or agent to repay the amount, unless it is ultimately determined that he or she is entitled to be indemnified by the Authority as authorized in this Section. Any member, officer, employee, or agent against whom any action, suit, or proceeding is brought may employ his or her own attorney to appear on his or her behalf. The right to indemnification accorded by this Section shall not limit any other right to indemnification to which the member, officer, employee, or agent may be entitled. Any rights under this Section shall inure to the benefit of the heirs, executors, and administrators of any member, officer, employee, or agent of the Authority. The Authority may purchase and maintain insurance on behalf of any person who is or was a member, officer, employee, or agent of the Authority against any liability asserted against him or her and incurred by him or her in any such capacity or arising out of his or her status as such, whether or not the Authority would have the power to indemnify him or her against the liability under the provisions of this Section. The Authority shall be considered a State agency for purposes of receiving representation by the Attorney General. Members, officers, employees, and agents of the Authority shall be entitled to representation and indemnification under the State Employee Indemnification Act. (Source: P.A. 92‑855, eff. 12‑6‑02.) |
Disclaimer: These codes may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.