Introduced
by
To amend the bonding authority contained in the Revised School Code so that it conforms to the changes in the law caused by Senate Bill 29, now Public Act 34 of 2001. Among other things that bill authorized local units of government, school districts, and other bonding authorities, to issue debt without prior Department of Treasury approval if they file an annual audit report demonstrating financial soundness. It also authorizes “budget bonds,” now prohibited, which are paid out of the operating budget and do not require a vote of the people, and negotiated bond sales, rather than competitive sales, now required for larger issues. The bill limits the issuance of refunding bonds and zero-coupon bonds to instances where they actually save taxpayer dollars. See also House Bills 5404 to 5423. This bill also changes an existing bond cap, which limits certain borrowing to a percentage of the state equalized value of all property in a district, to a percentage of taxable value, which is a lower amount.
Referred to the Committee on Commerce
Substitute offered
by
To replace the previous version of the bill with a version recommended by the committee which reported it. The substitute removes a provision of the bill changing an existing bond cap that limits certain borrowing to a percentage of the value to a percentage of taxable value of all property in the municipality, which is a lower amount.
The substitute passed by voice vote
Passed in the House 106 to 0 (details)
To amend certain bonding authority contained in the Revised School Code so that it conforms to the changes in the law caused by Senate Bill 29, now Public Act 34 of 2001. Among other things that law authorized local units of government, school districts, and other bonding authorities, to issue debt without prior Department of Treasury approval if they file an annual audit report demonstrating financial soundness. That law authorizes “budget bonds,” now prohibited, which are paid out of the operating budget and do not require a vote of the people, and negotiated bond sales, rather than competitive sales, now required for larger issues. The new law also limits the issuance of refunding bonds and zero-coupon bonds to instances where they actually save taxpayer dollars. See also House Bills 5404 to 5423.
Passed in the Senate 36 to 0 (details)
To amend certain bonding authority contained in the Revised School Code so that it conforms to the changes in the law caused by Senate Bill 29, now Public Act 34 of 2001. That bill made important changes to the procedures, requirements, and restrictions imposed on borrowing and debt issuance by local units of government and governmental authorities. (For more information on those changes see the description of Senate Bill 29.) This is one of more than 100 House and Senate bills amending different public acts to conform to the new law.
