Illinois 2025-2026 Regular Session

Illinois House Bill HB4017 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB4017 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: See Index Amends the School Finance Authority Act of the School Code. Reinstates the School Finance Authority and reverts any powers, duties, rights, or property granted to the Chicago Board of Education upon the abolition of the original Authority established by the Article back to the Authority. Provides that any powers, duties, rights, or property granted to the Board before the abolition of the original Authority and after the reinstatement of the Authority under the amendatory Act shall remain vested in the Board. Updates the expiration dates of terms of the Chairman, the 2 Directors of the Authority appointed by the Governor, and the 2 Directors of the Authority appointed by the Mayor. Requires the Board to adopt and submit for approval a financial plan on or before March 1, 2027 and adopt and submit for approval a budget on or before February 1, 2027 with respect to the remaining portion of the fiscal year ending in 2027. Requires the Board, beginning in fiscal year 2029 and every second year thereafter, to adopt a financial plan covering a period of 2 fiscal years. Requires the Board to submit a staffing plan for the fiscal year ending in 2027 to the Authority within 90 days after the effective date of the amendatory Act. Makes other changes. LRB104 12646 LNS 23374 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB4017 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: See Index See Index Amends the School Finance Authority Act of the School Code. Reinstates the School Finance Authority and reverts any powers, duties, rights, or property granted to the Chicago Board of Education upon the abolition of the original Authority established by the Article back to the Authority. Provides that any powers, duties, rights, or property granted to the Board before the abolition of the original Authority and after the reinstatement of the Authority under the amendatory Act shall remain vested in the Board. Updates the expiration dates of terms of the Chairman, the 2 Directors of the Authority appointed by the Governor, and the 2 Directors of the Authority appointed by the Mayor. Requires the Board to adopt and submit for approval a financial plan on or before March 1, 2027 and adopt and submit for approval a budget on or before February 1, 2027 with respect to the remaining portion of the fiscal year ending in 2027. Requires the Board, beginning in fiscal year 2029 and every second year thereafter, to adopt a financial plan covering a period of 2 fiscal years. Requires the Board to submit a staffing plan for the fiscal year ending in 2027 to the Authority within 90 days after the effective date of the amendatory Act. Makes other changes. LRB104 12646 LNS 23374 b LRB104 12646 LNS 23374 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB4017 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the School Finance Authority Act of the School Code. Reinstates the School Finance Authority and reverts any powers, duties, rights, or property granted to the Chicago Board of Education upon the abolition of the original Authority established by the Article back to the Authority. Provides that any powers, duties, rights, or property granted to the Board before the abolition of the original Authority and after the reinstatement of the Authority under the amendatory Act shall remain vested in the Board. Updates the expiration dates of terms of the Chairman, the 2 Directors of the Authority appointed by the Governor, and the 2 Directors of the Authority appointed by the Mayor. Requires the Board to adopt and submit for approval a financial plan on or before March 1, 2027 and adopt and submit for approval a budget on or before February 1, 2027 with respect to the remaining portion of the fiscal year ending in 2027. Requires the Board, beginning in fiscal year 2029 and every second year thereafter, to adopt a financial plan covering a period of 2 fiscal years. Requires the Board to submit a staffing plan for the fiscal year ending in 2027 to the Authority within 90 days after the effective date of the amendatory Act. Makes other changes.
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8	8	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
9	9	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
10	10	A BILL FOR
11	11	HB4017LRB104 12646 LNS 23374 b HB4017 LRB104 12646 LNS 23374 b
12	12	HB4017 LRB104 12646 LNS 23374 b
13	13	1 AN ACT concerning education.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The School Code is amended by changing Sections
17	17	5 34A-102, 34A-103, 34A-201, 34A-302, 34A-403, 34A-404,
18	18	6 34A-405.2, 34A-602, 34A-604, and 34A-606 as follows:
19	19	7 (105 ILCS 5/34A-102) (from Ch. 122, par. 34A-102)
20	20	8 Sec. 34A-102. Findings and purpose.
21	21	9 (a) The General Assembly finds:
22	22	10 (i) A fundamental goal of the people of the State, as
23	23	11 expressed in Section 1 of Article X of the Illinois
24	24	12 Constitution, is the educational development of all
25	25	13 persons to the limits of their capacities. When a board of
26	26	14 education faces financial difficulties, continued
27	27	15 operation of the public school system is threatened.
28	28	16 (ii) A sound financial structure is essential to the
29	29	17 continued operation of any school system. It is vital to
30	30	18 commercial, educational, and cultural interests that the
31	31	19 public schools remain in operation. To achieve that goal,
32	32	20 public school systems must have effective access to the
33	33	21 private market to borrow short and long term funds.
34	34	22 (iii) To promote the financial integrity of boards of
35	35	23 education of cities having a population exceeding 500,000,
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39	39	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB4017 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
40	40	See Index See Index
41	41	See Index
42	42	Amends the School Finance Authority Act of the School Code. Reinstates the School Finance Authority and reverts any powers, duties, rights, or property granted to the Chicago Board of Education upon the abolition of the original Authority established by the Article back to the Authority. Provides that any powers, duties, rights, or property granted to the Board before the abolition of the original Authority and after the reinstatement of the Authority under the amendatory Act shall remain vested in the Board. Updates the expiration dates of terms of the Chairman, the 2 Directors of the Authority appointed by the Governor, and the 2 Directors of the Authority appointed by the Mayor. Requires the Board to adopt and submit for approval a financial plan on or before March 1, 2027 and adopt and submit for approval a budget on or before February 1, 2027 with respect to the remaining portion of the fiscal year ending in 2027. Requires the Board, beginning in fiscal year 2029 and every second year thereafter, to adopt a financial plan covering a period of 2 fiscal years. Requires the Board to submit a staffing plan for the fiscal year ending in 2027 to the Authority within 90 days after the effective date of the amendatory Act. Makes other changes.
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45	45	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
46	46	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
47	47	A BILL FOR
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53	53	See Index
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59	59	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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76	76	1 it is necessary to provide for the creation of school
77	77	2 finance authorities with the powers necessary to promote
78	78	3 sound financial management and to assure the continued
79	79	4 operation of the public schools.
80	80	5 (b) It is the purpose of this Article to provide a secure
81	81	6 financial basis for the continued operation of the public
82	82	7 schools. In addition, it is the further purpose of this
83	83	8 Article to facilitate implementation of school reform in the
84	84	9 continued operation of the public schools in accordance with
85	85	10 the provisions of this amendatory Act of 1991 and in
86	86	11 accordance with the reinstatement of the Authority by this
87	87	12 amendatory Act of the 104th General Assembly. The intention of
88	88	13 the General Assembly, in enacting this legislation, is to
89	89	14 establish procedures, provide powers, and impose restrictions
90	90	15 to assure the financial and educational integrity of the
91	91	16 public schools while leaving principal responsibility for the
92	92	17 educational policies of the public schools to the boards of
93	93	18 education within the State, consistent with the requirements
94	94	19 for satisfying the public policy and purpose herein set forth.
95	95	20 (Source: P.A. 85-1418; 86-1477.)
96	96	21 (105 ILCS 5/34A-103) (from Ch. 122, par. 34A-103)
97	97	22 Sec. 34A-103. Definitions. As used in this Article:
98	98	23 (a) "Authority" means the "(Name of City) School Finance
99	99	24 Authority";
100	100	25 (b) "Board" means any board of education to which this
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111	111	1 Article is applicable;
112	112	2 (c) "Budget" means the budget of the Board as defined in
113	113	3 Section 34-43 of this Act, as from time to time in effect;
114	114	4 (d) "Chairman" means the chairman of the Authority
115	115	5 appointed pursuant to paragraph (c) of Section 34A-301 of this
116	116	6 Article;
117	117	7 (e) "City" means the city wherein the school district of
118	118	8 such Board is located;
119	119	9 (f) "Financial Plan" means the financial plan of the Board
120	120	10 to be developed pursuant to Section 34A-403 of this Article,
121	121	11 as from time to time in effect;
122	122	12 (g) "Fiscal Year" means the fiscal year of the Board;
123	123	13 (h) "Governor" means the Governor of the State of
124	124	14 Illinois;
125	125	15 (i) "School year" means the school year of the Board;
126	126	16 (j) "Approved System-Wide Educational Reform Goals and
127	127	17 Objectives Plan" means the system-wide educational reform
128	128	18 goals and objectives plan that has been accepted and approved
129	129	19 by the Authority;
130	130	20 (k) "Investment Obligations" means any of the following
131	131	21 which at the time of investment are legal investments under
132	132	22 the laws of the State for the money proposed to be invested
133	133	23 therein:
134	134	24 (i) Direct obligations of, or obligations the
135	135	25 principal of and interest on which are unconditionally
136	136	26 guaranteed by, the United States of America;
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147	147	1 (ii) Bonds, debentures, or notes or other evidence of
148	148	2 indebtedness issued or guaranteed by any of the following
149	149	3 agencies: CoBank; Bank for Cooperatives; Federal
150	150	4 Intermediate Credit Banks; Federal Land Banks; Federal
151	151	5 Home Loan Banks; the Federal National Mortgage
152	152	6 Association; the United States Postal Service; the
153	153	7 Government National Mortgage Association; the Federal
154	154	8 Financing National Mortgage Association; the Federal
155	155	9 Financing Bank; or any other agency or instrumentality of
156	156	10 the United States of America now existing or hereafter
157	157	11 created;
158	158	12 (iii) New Housing Authority Bonds issued by public
159	159	13 agencies or municipalities and fully secured as to the
160	160	14 payment of both principal and interest by a pledge of
161	161	15 annual contributions under an Annual Contributions
162	162	16 Contract or Contracts with the United States of America,
163	163	17 or Project Notes issued by public agencies or
164	164	18 municipalities and fully secured as to the payment of both
165	165	19 principal and interest by a requisition or payment
166	166	20 agreement with the United States of America;
167	167	21 (iv) Direct and general obligations of, or obligations
168	168	22 guaranteed by, the State, to the payment of the principal
169	169	23 of and interest on which the full faith and credit of the
170	170	24 State is pledged;
171	171	25 (v) Negotiable or non-negotiable time deposits
172	172	26 evidenced by certificates of deposit issued by banks,
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183	183	1 trust companies or national banking associations (which
184	184	2 may include the trustee) which are members of the Federal
185	185	3 Deposit Insurance Corporation and savings and loan
186	186	4 associations which are members of the Federal Savings and
187	187	5 Loan Insurance Corporation, provided that such time
188	188	6 deposits in any such bank, trust company, national banking
189	189	7 association or savings and loan association are
190	190	8 continuously secured by obligations described in clause
191	191	9 clauses (i), (ii), (iii), or (iv) of this definition,
192	192	10 provided further that such obligations at all times have a
193	193	11 market value at least equal to the maturity value of the
194	194	12 deposits so secured, including accrued interest; and
195	195	13 (vi) Repurchase agreements with banks (which may
196	196	14 include the trustee) described in clause (v) of this
197	197	15 definition and government bond dealers reporting to,
198	198	16 trading with, and recognized as primary dealers by a
199	199	17 Federal Reserve Bank, the underlying securities of which
200	200	18 are obligations described in clause clauses (i) or (ii) of
201	201	19 this definition, provided that the underlying securities
202	202	20 are required to be continuously maintained at a market
203	203	21 value not less than the amount so invested;
204	204	22 (l) "Mayor" means the Mayor of the City;
205	205	23 (m) "Obligations" means bonds and notes of the Authority;
206	206	24 (n) "State" means the State of Illinois.
207	207	25 (Source: P.A. 85-1418; 86-1477.)
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218	218	1 (105 ILCS 5/34A-201) (from Ch. 122, par. 34A-201)
219	219	2 Sec. 34A-201. General powers. The purposes of the
220	220	3 Authority shall be to exercise financial control over the
221	221	4 Board, and to furnish financial assistance so that the Board
222	222	5 can provide public education within the Board's jurisdiction
223	223	6 while permitting the Board to meet its obligations to its
224	224	7 creditors and the holders of its notes and bonds. Except as
225	225	8 expressly limited by this Article, the Authority shall have
226	226	9 all powers necessary to meet its responsibilities and to carry
227	227	10 out its purposes and the purposes of this Article, including,
228	228	11 but not limited to, the following powers:
229	229	12 (a) to sue and be sued;
230	230	13 (b) to provide for its organization and internal
231	231	14 management and, subject to agreements with or for the
232	232	15 benefit of holders of its Obligations, to make rules and
233	233	16 regulations governing the use of its property and
234	234	17 facilities;
235	235	18 (c) to make and execute contracts, leases, subleases,
236	236	19 and all other instruments or agreements necessary or
237	237	20 convenient for the exercise of the powers and functions
238	238	21 granted by this Article;
239	239	22 (d) to purchase real or personal property necessary or
240	240	23 convenient for its purposes; to execute and deliver deeds
241	241	24 for real property held in its own name; to mortgage,
242	242	25 pledge, or otherwise grant security interests in such
243	243	26 properties; and to sell, lease, or otherwise dispose of
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254	254	1 such of its property as, in the judgment of the Authority,
255	255	2 is no longer necessary for its purposes;
256	256	3 (e) to appoint officers, agents, and employees of the
257	257	4 Authority, define their duties and qualifications, and fix
258	258	5 their compensation and employee benefits;
259	259	6 (f) to lend or otherwise transfer to the Board such
260	260	7 sums of money as are not required for other purposes;
261	261	8 (g) to borrow money and to issue Obligations pursuant
262	262	9 to this Article, to fund, refund, or advance refund the
263	263	10 same, to provide for the rights of the holders of its
264	264	11 Obligations, and to repay any advances;
265	265	12 (h) subject to the provisions of any contract with or
266	266	13 for the benefit of the holders of its Obligations, to
267	267	14 purchase or redeem its Obligations or to purchase the
268	268	15 notes, bonds, or obligations of the Board or the notes,
269	269	16 bonds, or obligations of the City;
270	270	17 (i) to procure insurance against any loss in such
271	271	18 amounts and from such insurers as it deems desirable;
272	272	19 (j) to engage the services of consultants for
273	273	20 rendering professional and technical assistance and advice
274	274	21 on matters within the Authority's power;
275	275	22 (k) to contract for and to accept any gifts, grants,
276	276	23 or loans of funds or property or financial or other aid in
277	277	24 any form from the federal government, the State state
278	278	25 government, a unit of local government, a school district,
279	279	26 or any agency or instrumentality thereof, or from any
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290	290	1 other private or public source, and to comply with the
291	291	2 terms and conditions thereof;
292	292	3 (l) as security for the payment of the principal of
293	293	4 and interest on its Obligations and for the performance of
294	294	5 any agreements made in connection therewith, to grant a
295	295	6 security interest or lien upon all or any part of its
296	296	7 property or revenues;
297	297	8 (m) to pay the expenses of its operations; and
298	298	9 (n) to do any and all things necessary or convenient
299	299	10 to carry out its purposes and exercise the powers given to
300	300	11 the Authority by this Article.
301	301	12 The powers granted to the Authority under this Section
302	302	13 that were passed to and vested in the Board upon the
303	303	14 Authority's abolition before the effective date of this
304	304	15 amendatory Act of the 104th General Assembly shall be
305	305	16 reinstated to the Authority on the effective date of this
306	306	17 amendatory Act of the 104th General Assembly, and the Board
307	307	18 shall not have any of the powers set forth in this Section.
308	308	19 (Source: P.A. 81-1221.)
309	309	20 (105 ILCS 5/34A-302) (from Ch. 122, par. 34A-302)
310	310	21 Sec. 34A-302. Terms, vacancies, and removal. This Section
311	311	22 applies to the Authority reinstated by this amendatory Act of
312	312	23 the 104th General Assembly. Of the initial Directors appointed
313	313	24 by the Governor, with the approval of the Mayor, one each shall
314	314	25 be selected for terms expiring on January 31, 2027 1981 and
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325	325	1 January 31, 2028 1982. Of the initial Directors appointed by
326	326	2 the Mayor with the approval of the Governor, one each shall be
327	327	3 selected for terms expiring on January 31, 2027 1981 and
328	328	4 January 31, 2028 1982. The initial Chairman shall be selected
329	329	5 for a term expiring on January 31, 2029 1983. Thereafter, each
330	330	6 Director shall hold office for a term of 3 years, and until his
331	331	7 successor has been appointed as provided in Section 34A-301.
332	332	8 Any vacancy which shall arise, shall be filled as provided in
333	333	9 Section 34A-301. Any Director appointed to fill a vacancy
334	334	10 shall serve until the expiration of his predecessor's term,
335	335	11 and until his successor has been appointed as provided in
336	336	12 Section 34A-301. A vacancy shall occur upon resignation,
337	337	13 death, conviction of a felony, or removal from office of a
338	338	14 Director. Directors shall be eligible for reappointment. Any
339	339	15 Director may be removed for incompetence, malfeasance, or
340	340	16 neglect of duty, at the instance of the occupant of the office
341	341	17 entitled to appoint that Director, or in the case of the
342	342	18 Chairman at the instance of the occupant of each office so
343	343	19 entitled.
344	344	20 (Source: P.A. 81-1221.)
345	345	21 (105 ILCS 5/34A-403) (from Ch. 122, par. 34A-403)
346	346	22 Sec. 34A-403. Financial Plans. The Board shall develop,
347	347	23 adopt, and submit to the Authority on or before March 1, 2027
348	348	24 1980, for approval by the Authority, an initial Financial Plan
349	349	25 with respect to the remaining portion of the Fiscal Year
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360	360	1 ending in 2027 1980 and for the 2 two succeeding Fiscal Years.
361	361	2 The Board shall develop and adopt subsequent Financial Plans
362	362	3 in accordance with this Section. Beginning with the Fiscal
363	363	4 Year beginning in 2030 1993, and every second year thereafter,
364	364	5 the Board shall adopt a Financial Plan covering a period of 2
365	365	6 fiscal years. After adoption by the Board, the Board shall
366	366	7 submit each plan to the Authority for its approval not later
367	367	8 than 30 days prior to the commencement of the first Fiscal Year
368	368	9 to which the Financial Plan relates, except that the Financial
369	369	10 Plan to be developed for the Fiscal Years beginning in 1993 and
370	370	11 1994 shall be submitted to the Authority within 90 days of the
371	371	12 effective date of this amendatory Act of 1993. The Authority
372	372	13 shall approve or reject the Financial Plan within 15 days of
373	373	14 its receipt of the Financial Plan from the Board. No Financial
374	374	15 Plan shall have force or effect without approval of the
375	375	16 Authority. Each Financial Plan shall be developed, submitted,
376	376	17 approved, and monitored in accordance with the following
377	377	18 procedures:
378	378	19 (a) The Board shall determine and submit to the
379	379	20 Authority, at a time and in a manner prescribed by the
380	380	21 Authority, estimates of revenues available to the Board
381	381	22 during the period for which the Financial Plan is to be in
382	382	23 effect. The Authority shall approve, reject, or amend the
383	383	24 revenue estimates. If In the event the Board fails, for
384	384	25 any reason, to submit to the Authority estimates of
385	385	26 revenue as required by this paragraph, the Authority may
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396	396	1 prepare such estimates. The Financial Plan submitted by
397	397	2 the Board shall be based upon revenue estimates approved
398	398	3 or prepared by the Authority. As soon as practicable
399	399	4 following the establishment of the Authority, the
400	400	5 President of the Board shall, at the request of the
401	401	6 Chairman of the Authority, make available to the Chairman
402	402	7 of the Authority copies of the audited financial
403	403	8 statements and of the books and records of account of the
404	404	9 Board for the preceding 5 fiscal years of the Board.
405	405	10 (b) Each Financial Plan for each Fiscal Year or part
406	406	11 thereof to which it relates, shall contain (i) a
407	407	12 description of revenues and expenditures, provision for
408	408	13 debt service, cash resources and uses, and capital
409	409	14 improvements, each in such manner and detail as the
410	410	15 Authority shall prescribe, (ii) a description of the means
411	411	16 by which the Budget will be brought into balance in
412	412	17 accordance with Section 34A-402 of this Article, and (iii)
413	413	18 such other matters that the Authority, in its discretion,
414	414	19 requires. The initial Financial Plan shall also include a
415	415	20 description of the means by which any outstanding
416	416	21 short-term indebtedness shall be paid or refunded by the
417	417	22 Board. The Authority may prescribe any reasonable time,
418	418	23 standards, procedures, or forms consistent with this
419	419	24 Section for preparation and submission of the Financial
420	420	25 Plan.
421	421	26 (c) The Authority shall approve the initial and each
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432	432	1 subsequent Financial Plan if, in its judgment, the plan is
433	433	2 complete, is reasonably capable of being achieved, and
434	434	3 meets the requirement set forth in Section 34A-402 of this
435	435	4 Article. Otherwise, the Authority shall reject the
436	436	5 Financial Plan. If the Financial Plan is rejected In the
437	437	6 event of rejection, the Authority may prescribe a
438	438	7 procedure and standards for revision of the Financial Plan
439	439	8 by the Board.
440	440	9 (d) The Board shall report to the Authority, at such
441	441	10 times and in such manner as the Authority may direct,
442	442	11 concerning the Board's compliance with each Financial
443	443	12 Plan. The Authority may review the Board's operations,
444	444	13 obtain budgetary data and financial statements, require
445	445	14 the Board to produce reports, and have access to any other
446	446	15 information in the possession of the Board that it deems
447	447	16 relevant. The Authority may issue recommendations or
448	448	17 directives within its powers to the Board to assure
449	449	18 compliance with the Financial Plan. The Board shall
450	450	19 produce such budgetary data, financial statements,
451	451	20 reports, and other information and comply with such
452	452	21 directives.
453	453	22 (e) After approval of each Financial Plan, the Board
454	454	23 shall regularly reexamine the revenue and expenditure
455	455	24 estimates on which it was based and revise them as
456	456	25 necessary. The Board shall promptly notify the Authority
457	457	26 of any material change in the revenue or expenditure
458	458
459	459
460	460
461	461
462	462
463	463	HB4017 - 12 - LRB104 12646 LNS 23374 b
464	464
465	465
466	466	HB4017- 13 -LRB104 12646 LNS 23374 b HB4017 - 13 - LRB104 12646 LNS 23374 b
467	467	HB4017 - 13 - LRB104 12646 LNS 23374 b
468	468	1 estimates in the Financial Plan. The Board may submit to
469	469	2 the Authority, or the Authority may require the Board to
470	470	3 submit, modified Financial Plans based upon revised
471	471	4 revenue or expenditure estimates or for any other good
472	472	5 reason. The Authority shall approve or reject each
473	473	6 modified Financial Plan pursuant to paragraph (c) of this
474	474	7 Section.
475	475	8 (Source: P.A. 88-511.)
476	476	9 (105 ILCS 5/34A-404) (from Ch. 122, par. 34A-404)
477	477	10 Sec. 34A-404. Budgets. The Board shall develop and adopt
478	478	11 and submit to the Authority on or before February 1, 2027 1980,
479	479	12 for approval by the Authority, a revised Budget for the
480	480	13 remaining portion of the Fiscal Year ending in 2027 1980 and,
481	481	14 thereafter, an annual Budget for each Fiscal Year. After
482	482	15 adoption by the Board, the Board shall submit each Budget to
483	483	16 the Authority for its approval not later than 30 days prior to
484	484	17 the commencement of the Fiscal Year to which the Budget
485	485	18 relates. The Authority shall approve or reject the Budget
486	486	19 within 15 days of its receipt from the Board. No Budget shall
487	487	20 have force or effect without approval of the Authority. Each
488	488	21 Budget shall be developed, submitted, approved, and monitored
489	489	22 in accordance with the following procedures:
490	490	23 (a) Each Budget submitted by the Board shall be based
491	491	24 upon revenue estimates approved or prepared by the
492	492	25 Authority, as provided in paragraph (a) of Section 34A-403
493	493
494	494
495	495
496	496
497	497
498	498	HB4017 - 13 - LRB104 12646 LNS 23374 b
499	499
500	500
501	501	HB4017- 14 -LRB104 12646 LNS 23374 b HB4017 - 14 - LRB104 12646 LNS 23374 b
502	502	HB4017 - 14 - LRB104 12646 LNS 23374 b
503	503	1 of this Article.
504	504	2 (b) Each Budget shall contain such information and
505	505	3 detail as may be prescribed by the Authority. The
506	506	4 Authority may also prescribe any reasonable time,
507	507	5 standards, procedures or forms for preparation and
508	508	6 submission of the Budget. Any deficit for the Fiscal Year
509	509	7 ending in 2028 1981 and for any Fiscal Year thereafter
510	510	8 shall be included as a current expense item for the
511	511	9 succeeding Fiscal Year.
512	512	10 (c)(1) The Authority shall approve each Budget if, in
513	513	11 its judgment, the Budget is complete, is reasonably
514	514	12 capable of being achieved, will meet the requirement set
515	515	13 forth in Section 34A-402 of this Article, and will be
516	516	14 consistent with the Financial Plan in effect. Otherwise,
517	517	15 the Authority shall reject the Budget. In the event of
518	518	16 rejection, the Authority may prescribe a procedure and
519	519	17 standards for revision of the Budget by the Board.
520	520	18 (2) For any Fiscal Year, the Authority may approve a
521	521	19 provisional budget that, in its judgment, will satisfy the
522	522	20 standards of subdivision (c)(1) of this Section if,
523	523	21 notwithstanding the provisions of the Illinois Educational
524	524	22 Labor Relations Act or any other law to the contrary, the
525	525	23 amount appropriated therein for all spending for
526	526	24 operations shall not at any time, on an annualized basis,
527	527	25 exceed an Expenditure Limitation established by the
528	528	26 Authority. The Authority may establish and enforce,
529	529
530	530
531	531
532	532
533	533
534	534	HB4017 - 14 - LRB104 12646 LNS 23374 b
535	535
536	536
537	537	HB4017- 15 -LRB104 12646 LNS 23374 b HB4017 - 15 - LRB104 12646 LNS 23374 b
538	538	HB4017 - 15 - LRB104 12646 LNS 23374 b
539	539	1 including by exercise of its powers under Section
540	540	2 34A-409(b), such monitoring and control measures as it
541	541	3 deems necessary to assure that the commitments,
542	542	4 obligations, expenditures, and cash disbursements of the
543	543	5 Board continue to conform on an ongoing basis with any
544	544	6 Expenditure Limitation. No commitment, contract, or other
545	545	7 obligation of the Board in excess of the Expenditure
546	546	8 Limitation shall be legally binding, and any member of the
547	547	9 Board or any local school council, or officer, employee or
548	548	10 agent thereof, who violates the provisions of this Section
549	549	11 shall be subject to the provisions of Sections 34-52 and
550	550	12 34A-608. An Expenditure Limitation established by the
551	551	13 Authority shall remain in effect for that Fiscal Year or
552	552	14 until revoked by the Authority.
553	553	15 (d) The Board shall report to the Authority at such
554	554	16 times and in such manner as the Authority may direct,
555	555	17 concerning the Board's compliance with each Budget. The
556	556	18 Authority may review the Board's operations, obtain
557	557	19 budgetary data and financial statements, require the Board
558	558	20 to produce reports, and have access to any other
559	559	21 information in the possession of the Board that the
560	560	22 Authority deems relevant. The Authority may issue
561	561	23 recommendations or directives within its powers to the
562	562	24 Board to assure compliance with the Budget. The Board
563	563	25 shall produce such budgetary data, financial statements,
564	564	26 reports and other information and comply with such
565	565
566	566
567	567
568	568
569	569
570	570	HB4017 - 15 - LRB104 12646 LNS 23374 b
571	571
572	572
573	573	HB4017- 16 -LRB104 12646 LNS 23374 b HB4017 - 16 - LRB104 12646 LNS 23374 b
574	574	HB4017 - 16 - LRB104 12646 LNS 23374 b
575	575	1 directives.
576	576	2 (e) After approval of each Budget, the Board shall
577	577	3 promptly notify the Authority of any material change in
578	578	4 the revenue or expenditure estimates in the Budget. The
579	579	5 Board may submit to the Authority, or the Authority may
580	580	6 require the Board to submit, a supplemental Budget. The
581	581	7 Authority shall approve or reject each supplemental Budget
582	582	8 pursuant to paragraph (c) of this Section.
583	583	9 (Source: P.A. 100-201, eff. 8-18-17.)
584	584	10 (105 ILCS 5/34A-405.2)
585	585	11 Sec. 34A-405.2. Staffing levels.
586	586	12 (a) No hiring or appointment of any person in any position
587	587	13 by the Board, the general superintendent, any other officer or
588	588	14 employee of the Board, or any local school council shall be
589	589	15 made or entered into unless it is consistent with the
590	590	16 Financial Plan and Budget in effect and the staffing plan
591	591	17 approved by the Authority under this Section. The hiring or
592	592	18 appointment of any person shall not be binding on the Board
593	593	19 unless and until it is in compliance with this Section.
594	594	20 (b) The Board shall submit to the Authority for approval
595	595	21 by the Authority a staffing plan for the upcoming school year
596	596	22 at the same time as the submission of the Budget, except that
597	597	23 the staffing plan for the fiscal year ending in 2027 1994 shall
598	598	24 be submitted to the Authority within 90 days after the
599	599	25 effective date of this amendatory Act of the 104th General
600	600
601	601
602	602
603	603
604	604
605	605	HB4017 - 16 - LRB104 12646 LNS 23374 b
606	606
607	607
608	608	HB4017- 17 -LRB104 12646 LNS 23374 b HB4017 - 17 - LRB104 12646 LNS 23374 b
609	609	HB4017 - 17 - LRB104 12646 LNS 23374 b
610	610	1 Assembly of 1993. The staffing plan shall be accompanied by a
611	611	2 cost analysis and such other information as the Authority may
612	612	3 require. The Authority may adopt, and from time to time amend,
613	613	4 rules regulations to implement this Section and may prescribe
614	614	5 standards, procedures, and forms for submission of the
615	615	6 staffing plan.
616	616	7 (c) The Authority shall approve the staffing plan if, in
617	617	8 its judgment, the information required to be submitted is
618	618	9 complete and the staffing plan is consistent with the Budget
619	619	10 and Financial Plan in effect. Otherwise, the Authority shall
620	620	11 reject the staffing plan; in the event of rejection, the
621	621	12 Authority shall prescribe a procedure and standards for
622	622	13 revision of the staffing plan. The Authority shall act on the
623	623	14 staffing plan at the same time as the approval of the Budget,
624	624	15 except that the staffing plan for the fiscal year ending in
625	625	16 1994 shall be acted upon at the same time as approval of the
626	626	17 Financial Plan for that fiscal year.
627	627	18 (d) The Board shall report to the Authority, at such times
628	628	19 and in such manner as the Authority may direct, concerning the
629	629	20 Board's compliance with each staffing plan. The Authority may
630	630	21 review the Board's operations, obtaining budgetary data and
631	631	22 financial statements, may require the Board to produce
632	632	23 reports, and shall have access to any other information in the
633	633	24 possession of the Board that it deems relevant. The Authority
634	634	25 may issue recommendations or directives within its powers to
635	635	26 the Board to assure compliance with the staffing plan. The
636	636
637	637
638	638
639	639
640	640
641	641	HB4017 - 17 - LRB104 12646 LNS 23374 b
642	642
643	643
644	644	HB4017- 18 -LRB104 12646 LNS 23374 b HB4017 - 18 - LRB104 12646 LNS 23374 b
645	645	HB4017 - 18 - LRB104 12646 LNS 23374 b
646	646	1 Board shall produce such budgetary data, financial statements,
647	647	2 reports, and other information and shall comply with such
648	648	3 directives.
649	649	4 (e) After approval of each staffing plan, the Board shall
650	650	5 regularly reexamine the estimates on which it was based and
651	651	6 revise them as necessary. The Board shall promptly notify the
652	652	7 Authority of any material change in the estimates in the
653	653	8 staffing plan. The Board may submit to the Authority, or the
654	654	9 Authority may require the Board to submit, modifications to
655	655	10 the staffing plan based upon revised revenue or expenditure
656	656	11 estimates or for any other good reason. The Authority shall
657	657	12 approve or reject each modified staffing plan pursuant to
658	658	13 subsection (c) of this Section.
659	659	14 (Source: P.A. 88-511.)
660	660	15 (105 ILCS 5/34A-602) (from Ch. 122, par. 34A-602)
661	661	16 Sec. 34A-602. Indemnification. Limitations of actions
662	662	17 after abolition; indemnification.
663	663	18 (a) (Blank). Abolition of the Authority pursuant to
664	664	19 Section 34A-605 shall bar any remedy available against the
665	665	20 Authority, its Directors, employees, or agents, for any right
666	666	21 or claim existing, or any liability incurred, prior to such
667	667	22 abolition unless the action or other proceeding thereon is
668	668	23 commenced prior to the expiration of 2 years after the date of
669	669	24 such abolition.
670	670	25 (b) The Authority may indemnify any Director, officer,
671	671
672	672
673	673
674	674
675	675
676	676	HB4017 - 18 - LRB104 12646 LNS 23374 b
677	677
678	678
679	679	HB4017- 19 -LRB104 12646 LNS 23374 b HB4017 - 19 - LRB104 12646 LNS 23374 b
680	680	HB4017 - 19 - LRB104 12646 LNS 23374 b
681	681	1 employee, or agent who was or is a party, or is threatened to
682	682	2 be made a party to any threatened, pending, or completed
683	683	3 action, suit, or proceeding, whether civil, criminal,
684	684	4 administrative, or investigative, by reason of the fact that
685	685	5 the person he was a Director, officer, employee, or agent of
686	686	6 the Authority, against expenses (including attorney's
687	687	7 attorneys' fees), judgments, fines, and amounts paid in
688	688	8 settlement actually and reasonably incurred by the Director,
689	689	9 officer, employee, or agent him in connection with such
690	690	10 action, suit, or proceeding, if the Director, officer,
691	691	11 employee, or agent he acted in good faith and in a manner the
692	692	12 Director, officer, employee, or agent he reasonably believed
693	693	13 to be in, or not opposed to the best interests of the Authority
694	694	14 and, with respect to any criminal action or proceeding, had no
695	695	15 reasonable cause to believe the Director's, officer's,
696	696	16 employee's, or agent's his conduct was unlawful. The
697	697	17 termination of any action, suit, or proceeding by judgment,
698	698	18 order, settlement, conviction, or upon a plea of nolo
699	699	19 contendere or its equivalent, shall not, of itself, create a
700	700	20 presumption that the person did not act in good faith in a
701	701	21 manner which the person he reasonably believed to be in or not
702	702	22 opposed to the best interest of the Authority, and, with
703	703	23 respect to any criminal action or proceeding, had reasonable
704	704	24 cause to believe that the person's his conduct was unlawful.
705	705	25 To the extent that a Director, officer, employee, or agent
706	706	26 of the Authority has been successful, on the merits or
707	707
708	708
709	709
710	710
711	711
712	712	HB4017 - 19 - LRB104 12646 LNS 23374 b
713	713
714	714
715	715	HB4017- 20 -LRB104 12646 LNS 23374 b HB4017 - 20 - LRB104 12646 LNS 23374 b
716	716	HB4017 - 20 - LRB104 12646 LNS 23374 b
717	717	1 otherwise, in the defense of any such action, suit, or
718	718	2 proceeding referred to in this subsection or in defense of any
719	719	3 claim, issue, or matter therein, the Director, officer,
720	720	4 employee, or agent he shall be indemnified against expenses
721	721	5 (including attorney's fees) actually and reasonably incurred
722	722	6 by the Director, officer, employee, or agent him in connection
723	723	7 therewith. Any such indemnification shall be made by the
724	724	8 Authority only as authorized in the specific case, upon a
725	725	9 determination that indemnification of the Director, officer,
726	726	10 employee, or agent is proper in the circumstances because the
727	727	11 Director, officer, employee, or agent he has met the
728	728	12 applicable standard of conduct. Such determination shall be
729	729	13 made: (1) by the Board of Directors by a majority vote of a
730	730	14 quorum consisting of Directors who are not parties to such
731	731	15 action, suit, or proceeding; , or (2) if such a quorum is not
732	732	16 obtainable, or, even if obtainable, a quorum of disinterested
733	733	17 Directors so directs, by independent legal counsel in a
734	734	18 written opinion.
735	735	19 Reasonable expenses incurred in defending an action, suit,
736	736	20 or proceeding shall be paid by the Authority in advance of the
737	737	21 final disposition of such action, suit, or proceeding, as
738	738	22 authorized by the Board of Directors in the specific case,
739	739	23 upon receipt of an undertaking by or on behalf of the Director,
740	740	24 officer, employee, or agent to repay such amount, unless it
741	741	25 shall ultimately be determined that the Director, officer,
742	742	26 employee, or agent he is entitled to be indemnified by the
743	743
744	744
745	745
746	746
747	747
748	748	HB4017 - 20 - LRB104 12646 LNS 23374 b
749	749
750	750
751	751	HB4017- 21 -LRB104 12646 LNS 23374 b HB4017 - 21 - LRB104 12646 LNS 23374 b
752	752	HB4017 - 21 - LRB104 12646 LNS 23374 b
753	753	1 Authority as authorized in this Section.
754	754	2 Any Director, officer, employee, or agent against whom any
755	755	3 action, suit, or proceeding is brought may employ the
756	756	4 Director's, officer's, employee's, or agent's his or her own
757	757	5 attorney to appear on the Director's, officer's, employee's,
758	758	6 or agent's his or her behalf.
759	759	7 The right to indemnification accorded by this Section
760	760	8 shall not limit any other right to indemnification to which
761	761	9 the Director, officer, employee, or agent may be entitled. Any
762	762	10 rights hereunder shall inure to the benefit of the heirs,
763	763	11 executors, and administrators of any Director, officer,
764	764	12 employee, or agent of the Authority.
765	765	13 The Authority may purchase and maintain insurance on
766	766	14 behalf of any person who is or was a Director, officer,
767	767	15 employee, or agent of the Authority against any liability
768	768	16 asserted against the Director, officer, employee, or agent him
769	769	17 and incurred by the Director, officer, employee, or agent him
770	770	18 in any such capacity, or arising out of the Director's,
771	771	19 officer's, employee's, or agent's his status as such, whether
772	772	20 or not the Authority would have the power to indemnify the
773	773	21 Director, officer, employee, or agent him against such
774	774	22 liability under the provisions of this Section.
775	775	23 (Source: P.A. 82-97.)
776	776	24 (105 ILCS 5/34A-604) (from Ch. 122, par. 34A-604)
777	777	25 Sec. 34A-604. Reinstatement Abolition of Authority; Board
778	778
779	779
780	780
781	781
782	782
783	783	HB4017 - 21 - LRB104 12646 LNS 23374 b
784	784
785	785
786	786	HB4017- 22 -LRB104 12646 LNS 23374 b HB4017 - 22 - LRB104 12646 LNS 23374 b
787	787	HB4017 - 22 - LRB104 12646 LNS 23374 b
788	788	1 powers, duties, rights, and property. The Authority shall be
789	789	2 reinstated on the effective date of this amendatory Act of the
790	790	3 104th General Assembly. All powers and duties granted to the
791	791	4 Authority under this Article shall also be reinstated. Any
792	792	5 rights and property that were passed to and vested in the Board
793	793	6 upon the abolition of the original Authority established by
794	794	7 this Article or that were granted to the Board under this
795	795	8 Article after the abolition of the original Authority shall be
796	796	9 reinstated to the Authority on the effective date of this
797	797	10 amendatory Act of the 104th General Assembly. The Board shall
798	798	11 not have any powers, duties, rights, or property granted to
799	799	12 the Authority under this Article. Any powers, duties, rights,
800	800	13 or property granted to the Board under this Article prior to
801	801	14 the abolition of the original Authority or after the
802	802	15 reinstatement of the Authority under this amendatory Act of
803	803	16 the 104th General Assembly shall remain vested in the Board.
804	804	17 abolished one year after all its Obligations have been fully
805	805	18 paid and discharged or otherwise provided for. Upon the
806	806	19 abolition of the Authority, all of its rights and property
807	807	20 shall pass to and be vested in the Board.
808	808	21 (Source: P.A. 96-705, eff. 1-1-10.)
809	809	22 (105 ILCS 5/34A-606) (from Ch. 122, par. 34A-606)
810	810	23 Sec. 34A-606. Reports.
811	811	24 (a) The Directors, upon taking office and annually
812	812	25 thereafter, shall prepare and submit to the Governor, Mayor,
813	813
814	814
815	815
816	816
817	817
818	818	HB4017 - 22 - LRB104 12646 LNS 23374 b
819	819
820	820
821	821	HB4017- 23 -LRB104 12646 LNS 23374 b HB4017 - 23 - LRB104 12646 LNS 23374 b
822	822	HB4017 - 23 - LRB104 12646 LNS 23374 b
823	823	1 General Assembly, and City Council a report which shall
824	824	2 include the audited financial statement for the preceding
825	825	3 Fiscal Year of the Board, an approved Financial Plan or a
826	826	4 statement of reasons for the failure to adopt such a Financial
827	827	5 Plan, a statement of the major steps necessary to accomplish
828	828	6 the objectives of the Financial Plan, and a request for any
829	829	7 legislation necessary to achieve the objectives of the
830	830	8 Financial Plan.
831	831	9 (b) Annual reports shall be submitted on or before May 1 of
832	832	10 each year.
833	833	11 (c) The requirement for reporting to the General Assembly
834	834	12 shall be satisfied by filing copies of the report with the
835	835	13 Board, the Governor, the Mayor, and as required by Section 3.1
836	836	14 of the General Assembly Organization Act, and filing such
837	837	15 additional copies with the State Government Report
838	838	16 Distribution Center for the General Assembly as is required
839	839	17 under paragraph (t) of Section 7 of the State Library Act.
840	840	18 (d) Each annual report required to be submitted through
841	841	19 May 1, 1995, shall also include: (i) a description of the
842	842	20 activities of the Authority; (ii) an analysis of the
843	843	21 educational performance of the Board for the preceding school
844	844	22 year; (iii) an Approved System-Wide Educational Reform Goals
845	845	23 and Objectives Plan or a statement of reasons for the failure
846	846	24 to adopt such an Approved System-Wide Educational Reform Goals
847	847	25 and Objectives Plan; (iv) a statement of the major steps
848	848	26 necessary to accomplish the goals of the Approved System-Wide
849	849
850	850
851	851
852	852
853	853
854	854	HB4017 - 23 - LRB104 12646 LNS 23374 b
855	855
856	856
857	857	HB4017- 24 -LRB104 12646 LNS 23374 b HB4017 - 24 - LRB104 12646 LNS 23374 b
858	858	HB4017 - 24 - LRB104 12646 LNS 23374 b
859	859	1 Educational Reform Goals and Objectives Plan; (v) a commentary
860	860	2 with respect to those Board policies and rules and those
861	861	3 provisions of this The School Code and collective bargaining
862	862	4 agreements between the Board and its employees which, in the
863	863	5 opinion of the Authority, are obstacles and a hindrance to
864	864	6 fulfillment of any Approved System-Wide Educational Reform
865	865	7 Goals and Objectives Plan; and (vi) a request for any
866	866	8 legislative action necessary to achieve the goals of the
867	867	9 Approved System-Wide Educational Reform Goals and Objectives
868	868	10 Plan.
869	869	11 (Source: P.A. 100-1148, eff. 12-10-18.)
870	870	HB4017- 25 -LRB104 12646 LNS 23374 b 1 INDEX 2 Statutes amended in order of appearance 3 105 ILCS 5/34A-102from Ch. 122, par. 34A-1024 105 ILCS 5/34A-103from Ch. 122, par. 34A-1035 105 ILCS 5/34A-201from Ch. 122, par. 34A-2016 105 ILCS 5/34A-302from Ch. 122, par. 34A-3027 105 ILCS 5/34A-403from Ch. 122, par. 34A-4038 105 ILCS 5/34A-404from Ch. 122, par. 34A-4049 105 ILCS 5/34A-405.210 105 ILCS 5/34A-602from Ch. 122, par. 34A-60211 105 ILCS 5/34A-604from Ch. 122, par. 34A-60412 105 ILCS 5/34A-606from Ch. 122, par. 34A-606 HB4017- 25 -LRB104 12646 LNS 23374 b HB4017 - 25 - LRB104 12646 LNS 23374 b 1 INDEX 2 Statutes amended in order of appearance 3 105 ILCS 5/34A-102 from Ch. 122, par. 34A-102 4 105 ILCS 5/34A-103 from Ch. 122, par. 34A-103 5 105 ILCS 5/34A-201 from Ch. 122, par. 34A-201 6 105 ILCS 5/34A-302 from Ch. 122, par. 34A-302 7 105 ILCS 5/34A-403 from Ch. 122, par. 34A-403 8 105 ILCS 5/34A-404 from Ch. 122, par. 34A-404 9 105 ILCS 5/34A-405.2 10 105 ILCS 5/34A-602 from Ch. 122, par. 34A-602 11 105 ILCS 5/34A-604 from Ch. 122, par. 34A-604 12 105 ILCS 5/34A-606 from Ch. 122, par. 34A-606
871	871	HB4017- 25 -LRB104 12646 LNS 23374 b HB4017 - 25 - LRB104 12646 LNS 23374 b
872	872	HB4017 - 25 - LRB104 12646 LNS 23374 b
873	873	1 INDEX
874	874	2 Statutes amended in order of appearance
875	875	3 105 ILCS 5/34A-102 from Ch. 122, par. 34A-102
876	876	4 105 ILCS 5/34A-103 from Ch. 122, par. 34A-103
877	877	5 105 ILCS 5/34A-201 from Ch. 122, par. 34A-201
878	878	6 105 ILCS 5/34A-302 from Ch. 122, par. 34A-302
879	879	7 105 ILCS 5/34A-403 from Ch. 122, par. 34A-403
880	880	8 105 ILCS 5/34A-404 from Ch. 122, par. 34A-404
881	881	9 105 ILCS 5/34A-405.2
882	882	10 105 ILCS 5/34A-602 from Ch. 122, par. 34A-602
883	883	11 105 ILCS 5/34A-604 from Ch. 122, par. 34A-604
884	884	12 105 ILCS 5/34A-606 from Ch. 122, par. 34A-606
885	885
886	886
887	887
888	888
889	889
890	890	HB4017 - 24 - LRB104 12646 LNS 23374 b
891	891
892	892
893	893
894	894	HB4017- 25 -LRB104 12646 LNS 23374 b HB4017 - 25 - LRB104 12646 LNS 23374 b
895	895	HB4017 - 25 - LRB104 12646 LNS 23374 b
896	896	1 INDEX
897	897	2 Statutes amended in order of appearance
898	898	3 105 ILCS 5/34A-102 from Ch. 122, par. 34A-102
899	899	4 105 ILCS 5/34A-103 from Ch. 122, par. 34A-103
900	900	5 105 ILCS 5/34A-201 from Ch. 122, par. 34A-201
901	901	6 105 ILCS 5/34A-302 from Ch. 122, par. 34A-302
902	902	7 105 ILCS 5/34A-403 from Ch. 122, par. 34A-403
903	903	8 105 ILCS 5/34A-404 from Ch. 122, par. 34A-404
904	904	9 105 ILCS 5/34A-405.2
905	905	10 105 ILCS 5/34A-602 from Ch. 122, par. 34A-602
906	906	11 105 ILCS 5/34A-604 from Ch. 122, par. 34A-604
907	907	12 105 ILCS 5/34A-606 from Ch. 122, par. 34A-606
908	908
909	909
910	910
911	911
912	912
913	913	HB4017 - 25 - LRB104 12646 LNS 23374 b