SCH CD-CHI SCHOOL FINANCE AUTH

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4017

Introduced 3/11/2025, 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

HB4017
LRB104 12646 LNS 23374 b
1

AN ACT concerning education.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The School Code is amended by changing Sections
5
34A-102, 34A-103, 34A-201, 34A-302, 34A-403, 34A-404,
6
34A-405.2, 34A-602, 34A-604, and 34A-606 as follows:

7

(105 ILCS 5/34A-102)

(from Ch. 122, par. 34A-102)
8

Sec. 34A-102.
Findings and purpose.
9

(a) The General Assembly finds:

10

(i) A fundamental goal of the people of the State, as
11

expressed in Section 1 of Article X of the Illinois
12

Constitution, is the educational development of all
13

persons to the limits of their capacities. When a board of
14

education faces financial difficulties, continued
15

operation of the public school system is threatened.

16

(ii) A sound financial structure is essential to the
17

continued operation of any school system. It is vital to
18

commercial, educational
,
and cultural interests that the
19

public schools remain in operation. To achieve that goal,
20

public school systems must have effective access to the
21

private market to borrow short and long term funds.

22

(iii) To promote the financial integrity of boards of
23

education of cities having a population exceeding 500,000,

HB4017
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LRB104 12646 LNS 23374 b
1

it is necessary to provide for the creation of school
2

finance authorities with the powers necessary to promote
3

sound financial management and to assure the continued
4

operation of the public schools.
5

(b) It is the purpose of this Article to provide a secure
6
financial basis for the continued operation of the public
7
schools. In addition, it is the further purpose of this
8
Article to facilitate implementation of school reform in the
9
continued operation of the public schools in accordance with
10
the provisions of this amendatory Act of 1991
and in
11
accordance with the reinstatement of the Authority by this
12
amendatory Act of the 104th General Assembly
. The intention of
13
the General Assembly, in enacting this legislation, is to
14
establish procedures, provide powers
,
and impose restrictions
15
to assure the financial and educational integrity of the
16
public schools while leaving principal responsibility for the
17
educational policies of the public schools to the boards of
18
education within the State, consistent with the requirements
19
for satisfying the public policy and purpose herein set forth.
20
(Source: P.A. 85-1418; 86-1477.)

21

(105 ILCS 5/34A-103)

(from Ch. 122, par. 34A-103)
22

Sec. 34A-103.
Definitions.
As used in this Article:
23

(a) "Authority" means the "(Name of City) School Finance
24
Authority";
25

(b) "Board" means any board of education to which this

HB4017
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LRB104 12646 LNS 23374 b
1
Article is applicable;
2

(c) "Budget" means the budget of the Board as defined in
3
Section 34-43 of this Act, as from time to time in effect;
4

(d) "Chairman" means the chairman of the Authority
5
appointed pursuant to paragraph (c) of Section 34A-301 of this
6
Article;
7

(e) "City" means the city wherein the school district of
8
such Board is located;
9

(f) "Financial Plan" means the financial plan of the Board
10
to be developed pursuant to Section 34A-403 of this Article,
11
as from time to time in effect;
12

(g) "Fiscal Year" means the fiscal year of the Board;
13

(h) "Governor" means the Governor of the State of
14
Illinois;
15

(i) "School year" means the school year of the Board;
16

(j) "Approved System-Wide Educational Reform Goals and
17
Objectives Plan" means the system-wide educational reform
18
goals and objectives plan that has been accepted and approved
19
by the Authority;
20

(k) "Investment Obligations" means any of the following
21
which at the time of investment are legal investments under
22
the laws of the State for the money proposed to be invested
23
therein:

24

(i) Direct obligations of, or obligations the
25

principal of and interest on which are unconditionally
26

guaranteed by, the United States of America;

HB4017
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LRB104 12646 LNS 23374 b
1

(ii) Bonds, debentures
,
or notes or other evidence of
2

indebtedness issued or guaranteed by any of the following
3

agencies:
CoBank;

Bank for Cooperatives; Federal
4

Intermediate Credit Banks; Federal Land Banks;
Federal
5

Home Loan Banks; the Federal National Mortgage
6

Association; the United States Postal Service; the
7

Government National Mortgage Association;
the Federal
8

Financing National Mortgage Association;
the Federal
9

Financing Bank; or any other agency or instrumentality of
10

the United States of America now existing or hereafter
11

created;

12

(iii) New Housing Authority Bonds issued by public
13

agencies or municipalities and fully secured as to the
14

payment of both principal and interest by a pledge of
15

annual contributions under an Annual Contributions
16

Contract or Contracts with the United States of America,
17

or Project Notes issued by public agencies or
18

municipalities and fully secured as to the payment of both
19

principal and interest by a requisition or payment
20

agreement with the United States of America;

21

(iv) Direct and general obligations of, or obligations
22

guaranteed by, the State, to the payment of the principal
23

of and interest on which the full faith and credit of the
24

State is pledged;

25

(v) Negotiable or non-negotiable time deposits
26

evidenced by certificates of deposit issued by banks,

HB4017
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LRB104 12646 LNS 23374 b
1

trust companies or national banking associations (which
2

may include the trustee) which are members of the Federal
3

Deposit Insurance Corporation and savings and loan
4

associations which are members of the Federal Savings and
5

Loan Insurance Corporation, provided that such time
6

deposits in any such bank, trust company, national banking
7

association or savings and loan association are
8

continuously secured by obligations described in
clause

9

clauses
(i), (ii), (iii), or (iv) of this definition,
10

provided further that such obligations at all times have a
11

market value at least equal to the maturity value of the
12

deposits so secured, including accrued interest; and

13

(vi) Repurchase agreements with banks (which may
14

include the trustee) described in clause (v) of this
15

definition and government bond dealers reporting to,
16

trading with, and recognized as primary dealers by a
17

Federal Reserve Bank, the underlying securities of which
18

are obligations described in
clause

clauses
(i) or (ii) of
19

this definition, provided that the underlying securities
20

are required to be continuously maintained at a market
21

value not less than the amount so invested;
22

(l) "Mayor" means the Mayor of the City;
23

(m) "Obligations" means bonds and notes of the Authority;
24

(n) "State" means the State of Illinois.
25
(Source: P.A. 85-1418; 86-1477.)

HB4017
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LRB104 12646 LNS 23374 b
1

(105 ILCS 5/34A-201)

(from Ch. 122, par. 34A-201)
2

Sec. 34A-201.
General powers.
The purposes of the
3
Authority shall be to exercise financial control over the
4
Board, and to furnish financial assistance so that the Board
5
can provide public education within the Board's jurisdiction
6
while permitting the Board to meet its obligations to its
7
creditors and the holders of its notes and bonds. Except as
8
expressly limited by this Article, the Authority shall have
9
all powers necessary to meet its responsibilities and to carry
10
out its purposes and the purposes of this Article, including,
11
but not limited to, the following powers:
12

(a) to sue and be sued;
13

(b) to provide for its organization and internal
14

management and, subject to agreements with or for the
15

benefit of holders of its Obligations, to make rules and
16

regulations governing the use of its property and
17

facilities;
18

(c) to make and execute contracts, leases, subleases
,

19

and all other instruments or agreements necessary or
20

convenient for the exercise of the powers and functions
21

granted by this Article;
22

(d) to purchase real or personal property necessary or
23

convenient for its purposes; to execute and deliver deeds
24

for real property held in its own name; to mortgage,
25

pledge
,
or otherwise grant security interests in such
26

properties; and to sell, lease, or otherwise dispose of

HB4017
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LRB104 12646 LNS 23374 b
1

such of its property as, in the judgment of the Authority,
2

is no longer necessary for its purposes;
3

(e) to appoint officers, agents, and employees of the
4

Authority, define their duties and qualifications
,
and fix
5

their compensation and employee benefits;
6

(f) to lend or otherwise transfer to the Board such
7

sums of money as are not required for other purposes;
8

(g) to borrow money and to issue Obligations pursuant
9

to this Article, to fund, refund
,
or advance refund the
10

same, to provide for the rights of the holders of its
11

Obligations, and to repay any advances;
12

(h) subject to the provisions of any contract with or
13

for the benefit of the holders of its Obligations, to
14

purchase or redeem its Obligations or to purchase the
15

notes, bonds
,
or obligations of the Board or the notes,
16

bonds
,
or obligations of the City;
17

(i) to procure insurance against any loss in such
18

amounts and from such insurers as it deems desirable;
19

(j) to engage the services of consultants for
20

rendering professional and technical assistance and advice
21

on matters within the Authority's power;
22

(k) to contract for and to accept any gifts, grants
,

23

or loans of funds or property or financial or other aid in
24

any form from the federal government,
the State

state

25

government,
a
unit of local government,
a
school district
,

26

or any agency or instrumentality thereof, or from any

HB4017
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LRB104 12646 LNS 23374 b
1

other private or public source, and to comply with the
2

terms and conditions thereof;
3

(l) as security for the payment of the principal of
4

and interest on its Obligations and for the performance of
5

any agreements made in connection therewith, to grant a
6

security interest or lien upon all or any part of its
7

property or revenues;
8

(m) to pay the expenses of its operations; and
9

(n) to do any and all things necessary or convenient
10

to carry out its purposes and exercise the powers given to
11

the Authority by this Article.
12

The powers granted to the Authority under this Section
13
that were passed to and vested in the Board upon the
14
Authority's abolition before the effective date of this
15
amendatory Act of the 104th General Assembly shall be
16
reinstated to the Authority on the effective date of this
17
amendatory Act of the 104th General Assembly, and the Board
18
shall not have any of the powers set forth in this Section.

19
(Source: P.A. 81-1221
.)

20

(105 ILCS 5/34A-302)

(from Ch. 122, par. 34A-302)
21

Sec. 34A-302.
Terms, vacancies
,
and removal.
This Section
22
applies to the Authority reinstated by this amendatory Act of
23
the 104th General Assembly.
Of the initial Directors appointed
24
by the Governor, with the approval of the Mayor, one each shall
25
be selected for terms expiring on January 31,
2027

1981
and

HB4017
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LRB104 12646 LNS 23374 b
1
January 31,
2028

1982
. Of the initial Directors appointed by
2
the Mayor with the approval of the Governor, one each shall be
3
selected for terms expiring on January 31,
2027

1981
and
4
January 31,
2028

1982
. The initial Chairman shall be selected
5
for a term expiring
on
January 31,
2029

1983
. Thereafter, each
6
Director shall hold office for a term of 3 years, and until his
7
successor has been appointed as provided in Section 34A-301.
8
Any vacancy which shall arise, shall be filled as provided in
9
Section 34A-301. Any Director appointed to fill a vacancy
10
shall serve until the expiration of his predecessor's term,
11
and until his successor has been appointed as provided in
12
Section 34A-301. A vacancy shall occur upon resignation,
13
death, conviction of a felony, or removal from office of a
14
Director. Directors shall be eligible for reappointment. Any
15
Director may be removed for incompetence, malfeasance
,
or
16
neglect of duty, at the instance of the occupant of the office
17
entitled to appoint that Director, or in the case of the
18
Chairman at the instance of the occupant of each office so
19
entitled.
20
(Source: P.A. 81-1221.)

21

(105 ILCS 5/34A-403)

(from Ch. 122, par. 34A-403)
22

Sec. 34A-403.
Financial Plans.
The Board shall develop,
23
adopt
,
and submit to the Authority on or before March 1,
2027

24
1980
, for approval by the Authority, an initial Financial Plan
25
with respect to the remaining portion of the Fiscal Year

HB4017
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LRB104 12646 LNS 23374 b
1
ending in
2027

1980
and for the
2

two
succeeding Fiscal Years.
2
The Board shall develop and adopt subsequent Financial Plans
3
in accordance with this Section. Beginning with the Fiscal
4
Year beginning in
2030

1993
, and every second year thereafter,
5
the Board shall adopt a Financial Plan covering a period of 2
6
fiscal years. After adoption by the Board, the Board shall
7
submit each plan to the Authority for its approval not later
8
than 30 days prior to the commencement of the first Fiscal Year
9
to which the Financial Plan relates
, except that the Financial
10
Plan to be developed for the Fiscal Years beginning in 1993 and
11
1994 shall be submitted to the Authority within 90 days of the
12
effective date of this amendatory Act of 1993
. The Authority
13
shall approve or reject the Financial Plan within 15 days of
14
its receipt of the Financial Plan from the Board. No Financial
15
Plan shall have force or effect without approval of the
16
Authority. Each Financial Plan shall be developed, submitted,
17
approved
,
and monitored in accordance with the following
18
procedures:
19

(a) The Board shall determine and submit to the
20

Authority, at a time and in a manner prescribed by the
21

Authority, estimates of revenues available to the Board
22

during the period for which the Financial Plan is to be in
23

effect. The Authority shall approve, reject
,
or amend the
24

revenue estimates.
If

In the event
the Board fails, for
25

any reason, to submit to the Authority estimates of
26

revenue as required by this paragraph, the Authority may

HB4017
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LRB104 12646 LNS 23374 b
1

prepare such estimates. The Financial Plan submitted by
2

the Board shall be based upon revenue estimates approved
3

or prepared by the Authority. As soon as practicable
4

following the establishment of the Authority, the
5

President of the Board shall, at the request of the
6

Chairman of the Authority, make available to the Chairman
7

of the Authority copies of the audited financial
8

statements and of the books and records of account of the
9

Board for the preceding 5 fiscal years of the Board.
10

(b) Each Financial Plan for each Fiscal Year or part
11

thereof to which it relates, shall contain (i) a
12

description of revenues and expenditures, provision for
13

debt service, cash resources and uses, and capital
14

improvements, each in such manner and detail as the
15

Authority shall prescribe, (ii) a description of the means
16

by which the Budget will be brought into balance in
17

accordance with Section 34A-402 of this Article, and (iii)
18

such other matters that the Authority, in its discretion,
19

requires. The initial Financial Plan shall also include a
20

description of the means by which any outstanding
21

short-term indebtedness shall be paid or refunded by the
22

Board. The Authority may prescribe any reasonable time,
23

standards, procedures
,
or forms consistent with this
24

Section for preparation and submission of the Financial
25

Plan.
26

(c) The Authority shall approve the initial and each

HB4017
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LRB104 12646 LNS 23374 b
1

subsequent Financial Plan if, in its judgment, the plan is
2

complete, is reasonably capable of being achieved, and
3

meets the requirement set forth in Section 34A-402 of this
4

Article. Otherwise, the Authority shall reject the
5

Financial Plan.
If the Financial Plan is rejected

In the
6

event of rejection
, the Authority may prescribe a
7

procedure and standards for revision of the Financial Plan
8

by the Board.
9

(d) The Board shall report to the Authority, at such
10

times and in such manner as the Authority may direct,
11

concerning the Board's compliance with each Financial
12

Plan. The Authority may review the Board's operations,
13

obtain budgetary data and financial statements, require
14

the Board to produce reports, and have access to any other
15

information in the possession of the Board that it deems
16

relevant. The Authority may issue recommendations or
17

directives within its powers to the Board to assure
18

compliance with the Financial Plan. The Board shall
19

produce such budgetary data, financial statements,
20

reports
,
and other information and comply with such
21

directives.
22

(e) After approval of each Financial Plan, the Board
23

shall regularly reexamine the revenue and expenditure
24

estimates on which it was based and revise them as
25

necessary. The Board shall promptly notify the Authority
26

of any material change in the revenue or expenditure

HB4017
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LRB104 12646 LNS 23374 b
1

estimates in the Financial Plan. The Board may submit to
2

the Authority, or the Authority may require the Board to
3

submit, modified Financial Plans based upon revised
4

revenue or expenditure estimates or for any other good
5

reason. The Authority shall approve or reject each
6

modified Financial Plan pursuant to paragraph (c) of this
7

Section.
8
(Source: P.A. 88-511.)

9

(105 ILCS 5/34A-404)

(from Ch. 122, par. 34A-404)
10

Sec. 34A-404.
Budgets.
The Board shall develop and adopt
11
and submit to the Authority on or before February 1,
2027

1980
,
12
for approval by the Authority, a revised Budget for the
13
remaining portion of the Fiscal Year ending in
2027

1980
and,
14
thereafter, an annual Budget for each Fiscal Year. After
15
adoption by the Board, the Board shall submit each Budget to
16
the Authority for its approval not later than 30 days prior to
17
the commencement of the Fiscal Year to which the Budget
18
relates. The Authority shall approve or reject the Budget
19
within 15 days of its receipt from the Board. No Budget shall
20
have force or effect without approval of the Authority. Each
21
Budget shall be developed, submitted, approved
,
and monitored
22
in accordance with the following procedures:
23

(a) Each Budget submitted by the Board shall be based
24

upon revenue estimates approved or prepared by the
25

Authority, as provided in paragraph (a) of Section 34A-403

HB4017
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LRB104 12646 LNS 23374 b
1

of this Article.
2

(b) Each Budget shall contain such information and
3

detail as may be prescribed by the Authority. The
4

Authority may also prescribe any reasonable time,
5

standards, procedures or forms for preparation and
6

submission of the Budget. Any deficit for the Fiscal Year
7

ending in
2028

1981
and for any Fiscal Year thereafter
8

shall be included as a current expense item for the
9

succeeding Fiscal Year.
10

(c)(1) The Authority shall approve each Budget if, in
11

its judgment, the Budget is complete, is reasonably
12

capable of being achieved, will meet the requirement set
13

forth in Section 34A-402 of this Article, and will be
14

consistent with the Financial Plan in effect. Otherwise,
15

the Authority shall reject the Budget. In the event of
16

rejection, the Authority may prescribe a procedure and
17

standards for revision of the Budget by the Board.
18

(2) For any Fiscal Year, the Authority may approve a
19

provisional budget that, in its judgment, will satisfy the
20

standards of subdivision (c)(1) of this Section if,
21

notwithstanding the provisions of the Illinois Educational
22

Labor Relations Act or any other law to the contrary, the
23

amount appropriated therein for all spending for
24

operations shall not at any time, on an annualized basis,
25

exceed an Expenditure Limitation established by the
26

Authority. The Authority may establish and enforce,

HB4017
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LRB104 12646 LNS 23374 b
1

including by exercise of its powers under Section
2

34A-409(b), such monitoring and control measures as it
3

deems necessary to assure that the commitments,
4

obligations, expenditures, and cash disbursements of the
5

Board continue to conform on an ongoing basis with any
6

Expenditure Limitation. No commitment, contract, or other
7

obligation of the Board in excess of the Expenditure
8

Limitation shall be legally binding, and any member of the
9

Board or any local school council, or officer, employee or
10

agent thereof, who violates the provisions of this Section
11

shall be subject to the provisions of Sections 34-52 and
12

34A-608. An Expenditure Limitation established by the
13

Authority shall remain in effect for that Fiscal Year or
14

until revoked by the Authority.
15

(d) The Board shall report to the Authority at such
16

times and in such manner as the Authority may direct,
17

concerning the Board's compliance with each Budget. The
18

Authority may review the Board's operations, obtain
19

budgetary data and financial statements, require the Board
20

to produce reports, and have access to any other
21

information in the possession of the Board that the
22

Authority deems relevant. The Authority may issue
23

recommendations or directives within its powers to the
24

Board to assure compliance with the Budget. The Board
25

shall produce such budgetary data, financial statements,
26

reports and other information and comply with such

HB4017
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LRB104 12646 LNS 23374 b
1

directives.
2

(e) After approval of each Budget, the Board shall
3

promptly notify the Authority of any material change in
4

the revenue or expenditure estimates in the Budget. The
5

Board may submit to the Authority, or the Authority may
6

require the Board to submit, a supplemental Budget. The
7

Authority shall approve or reject each supplemental Budget
8

pursuant to paragraph (c) of this Section.
9
(Source: P.A. 100-201, eff. 8-18-17.)

10

(105 ILCS 5/34A-405.2)
11

Sec. 34A-405.2.
Staffing levels.
12

(a) No hiring or appointment of any person in any position
13
by the Board, the general superintendent, any other officer or
14
employee of the Board, or any local school council shall be
15
made or entered into unless it is consistent with the
16
Financial Plan and Budget in effect and the staffing plan
17
approved by the Authority under this Section. The hiring or
18
appointment of any person shall not be binding on the Board
19
unless and until it is in compliance with this Section.
20

(b) The Board shall submit to the Authority for approval
21
by the Authority a staffing plan for the upcoming school year
22
at the same time as the submission of the Budget, except that
23
the staffing plan for the fiscal year ending in
2027

1994
shall
24
be submitted to the Authority within 90 days after the
25
effective date of this amendatory Act
of the 104th General

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1
Assembly

of 1993
. The staffing plan shall be accompanied by a
2
cost analysis and such other information as the Authority may
3
require. The Authority may adopt, and from time to time amend,
4
rules

regulations
to implement this Section and may prescribe
5
standards, procedures, and forms for submission of the
6
staffing plan.
7

(c) The Authority shall approve the staffing plan if, in
8
its judgment, the information required to be submitted is
9
complete and the staffing plan is consistent with the Budget
10
and Financial Plan in effect. Otherwise, the Authority shall
11
reject the staffing plan; in the event of rejection, the
12
Authority shall prescribe a procedure and standards for
13
revision of the staffing plan. The Authority shall act on the
14
staffing plan at the same time as the approval of the Budget,
15
except that the staffing plan for the fiscal year ending in
16
1994 shall be acted upon at the same time as approval of the
17
Financial Plan for that fiscal year.
18

(d) The Board shall report to the Authority, at such times
19
and in such manner as the Authority may direct, concerning the
20
Board's compliance with each staffing plan. The Authority may
21
review the Board's operations, obtaining budgetary data and
22
financial statements, may require the Board to produce
23
reports, and shall have access to any other information in the
24
possession of the Board that it deems relevant. The Authority
25
may issue recommendations or directives within its powers to
26
the Board to assure compliance with the staffing plan. The

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1
Board shall produce such budgetary data, financial statements,
2
reports, and other information and shall comply with such
3
directives.
4

(e) After approval of each staffing plan, the Board shall
5
regularly reexamine the estimates on which it was based and
6
revise them as necessary. The Board shall promptly notify the
7
Authority of any material change in the estimates in the
8
staffing plan. The Board may submit to the Authority, or the
9
Authority may require the Board to submit, modifications to
10
the staffing plan based upon revised revenue or expenditure
11
estimates or for any other good reason. The Authority shall
12
approve or reject each modified staffing plan pursuant to
13
subsection (c) of this Section.
14
(Source: P.A. 88-511.)

15

(105 ILCS 5/34A-602)

(from Ch. 122, par. 34A-602)
16

Sec. 34A-602.
Indemnification.

Limitations of actions
17
after abolition; indemnification.

18

(a)
(Blank).

Abolition of the Authority pursuant to
19
Section 34A-605 shall bar any remedy available against the
20
Authority, its Directors, employees, or agents, for any right
21
or claim existing, or any liability incurred, prior to such
22
abolition unless the action or other proceeding thereon is
23
commenced prior to the expiration of 2 years after the date of
24
such abolition.
25

(b) The Authority may indemnify any Director, officer,

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1
employee, or agent who was or is a party
,
or is threatened to
2
be made a party to any threatened, pending
,
or completed
3
action, suit
,
or proceeding, whether civil, criminal,
4
administrative
,
or investigative
,
by reason of the fact that
5
the person

he
was a Director, officer, employee
,
or agent of
6
the Authority, against expenses (including
attorney's

7
attorneys'
fees), judgments, fines
,
and amounts paid in
8
settlement actually and reasonably incurred by
the Director,
9
officer, employee, or agent

him
in connection with such
10
action, suit
,
or proceeding
,
if
the Director, officer,
11
employee, or agent

he
acted in good faith and in a manner
the
12
Director, officer, employee, or agent

he
reasonably believed
13
to be in
,
or not opposed to the best interests of the Authority
14
and, with respect to any criminal action or proceeding, had no
15
reasonable cause to believe
the Director's, officer's,
16
employee's, or agent's

his
conduct was unlawful. The
17
termination of any action, suit
,
or proceeding by judgment,
18
order, settlement, conviction, or upon a plea of nolo
19
contendere or its equivalent, shall not, of itself, create a
20
presumption that the person did not act in good faith in a
21
manner which
the person

he
reasonably believed to be in or not
22
opposed to the best interest of the Authority, and, with
23
respect to any criminal action or proceeding, had reasonable
24
cause to believe that
the person's

his
conduct was unlawful.
25

To the extent that a Director, officer, employee
,
or agent
26
of the Authority has been successful, on the merits or

HB4017
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1
otherwise, in the defense of any such action, suit
,
or
2
proceeding referred to in this subsection or in defense of any
3
claim, issue
,
or matter therein,
the Director, officer,
4
employee, or agent

he
shall be indemnified against expenses
5
(including attorney's fees) actually and reasonably incurred
6
by
the Director, officer, employee, or agent

him
in connection
7
therewith. Any such indemnification shall be made by the
8
Authority only as authorized in the specific case, upon a
9
determination that indemnification of the Director, officer,
10
employee
,
or agent is proper in the circumstances because
the
11
Director, officer, employee, or agent

he
has met the
12
applicable standard of conduct. Such determination shall be
13
made: (1) by the Board of Directors by a majority vote of a
14
quorum consisting of Directors who are not parties to such
15
action, suit
,
or proceeding
;

,
or (2) if such a quorum is not
16
obtainable, or, even if obtainable, a quorum of disinterested
17
Directors so directs, by independent legal counsel in a
18
written opinion.
19

Reasonable expenses incurred in defending an action, suit
,

20
or proceeding shall be paid by the Authority in advance of the
21
final disposition of such action, suit
,
or proceeding, as
22
authorized by the Board of Directors in the specific case,
23
upon receipt of an undertaking by or on behalf of the Director,
24
officer, employee
,
or agent to repay such amount, unless it
25
shall ultimately be determined that
the Director, officer,
26
employee, or agent

he
is entitled to be indemnified by the

HB4017
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LRB104 12646 LNS 23374 b
1
Authority as authorized in this Section.
2

Any Director, officer, employee
,
or agent against whom any
3
action, suit
,
or proceeding is brought may employ
the
4
Director's, officer's, employee's, or agent's

his or her
own
5
attorney to appear on
the Director's, officer's, employee's,
6
or agent's

his or her
behalf.
7

The right to indemnification accorded by this Section
8
shall not limit any other right to indemnification to which
9
the Director, officer, employee
,
or agent may be entitled. Any
10
rights hereunder shall inure to the benefit of the heirs,
11
executors
,
and administrators of any Director, officer,
12
employee
,
or agent of the Authority.
13

The Authority may purchase and maintain insurance on
14
behalf of any person who is or was a Director, officer,
15
employee
,
or agent of the Authority against any liability
16
asserted against
the Director, officer, employee, or agent

him

17
and incurred by
the Director, officer, employee, or agent

him

18
in any such capacity, or arising out of
the Director's,
19
officer's, employee's, or agent's

his
status as such, whether
20
or not the Authority would have the power to indemnify
the
21
Director, officer, employee, or agent

him
against such
22
liability under the provisions of this Section.
23
(Source: P.A. 82-97.)

24

(105 ILCS 5/34A-604)

(from Ch. 122, par. 34A-604)
25

Sec. 34A-604.
Reinstatement

Abolition
of Authority
; Board

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1
powers, duties, rights, and property
.
The Authority shall be
2
reinstated on the effective date of this amendatory Act of the
3
104th General Assembly. All powers and duties granted to the
4
Authority under this Article shall also be reinstated. Any
5
rights and property that were passed to and vested in the Board
6
upon the abolition of the original Authority established by
7
this Article or that were granted to the Board under this
8
Article after the abolition of the original Authority shall be
9
reinstated to the Authority on the effective date of this
10
amendatory Act of the 104th General Assembly. The Board shall
11
not have any powers, duties, rights, or property granted to
12
the Authority under this Article. Any powers, duties, rights,
13
or property granted to the Board under this Article prior to
14
the abolition of the original Authority or after the
15
reinstatement of the Authority under this amendatory Act of
16
the 104th General Assembly shall remain vested in the Board.

17
abolished one year after all its Obligations have been fully
18
paid and discharged or otherwise provided for. Upon the
19
abolition of the Authority, all of its rights and property
20
shall pass to and be vested in the Board.
21
(Source: P.A. 96-705, eff. 1-1-10.)

22

(105 ILCS 5/34A-606)

(from Ch. 122, par. 34A-606)
23

Sec. 34A-606.
Reports.
24

(a) The Directors, upon taking office and annually
25
thereafter, shall prepare and submit to the Governor, Mayor,

HB4017
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LRB104 12646 LNS 23374 b
1
General Assembly, and City Council a report which shall
2
include the audited financial statement for the preceding
3
Fiscal Year of the Board, an approved Financial Plan or a
4
statement of reasons for the failure to adopt
such
a Financial
5
Plan, a statement of the major steps necessary to accomplish
6
the objectives of the Financial Plan, and a request for any
7
legislation necessary to achieve the objectives of the
8
Financial Plan.
9

(b) Annual reports shall be submitted on or before May 1 of
10
each year.
11

(c) The requirement for reporting to the General Assembly
12
shall be satisfied by filing copies of the report with the
13
Board, the Governor, the Mayor
,
and as required by Section 3.1
14
of the General Assembly Organization Act, and filing such
15
additional copies with the State Government Report
16
Distribution Center for the General Assembly as is required
17
under paragraph (t) of Section 7 of the State Library Act.
18

(d) Each annual report required to be submitted
through
19
May 1, 1995,
shall
also
include: (i) a description of the
20
activities of the Authority; (ii) an analysis of the
21
educational performance of the Board for the preceding school
22
year; (iii) an Approved System-Wide Educational Reform Goals
23
and Objectives Plan or a statement of reasons for the failure
24
to adopt
such
an Approved System-Wide Educational Reform Goals
25
and Objectives Plan; (iv) a statement of the major steps
26
necessary to accomplish the goals of the Approved System-Wide

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LRB104 12646 LNS 23374 b
1
Educational Reform Goals and Objectives Plan; (v) a commentary
2
with respect to those Board policies and rules and those
3
provisions of
this

The School
Code and collective bargaining
4
agreements between the Board and its employees which, in the
5
opinion of the Authority, are obstacles and a hindrance to
6
fulfillment of any Approved System-Wide Educational Reform
7
Goals and Objectives Plan; and (vi) a request for any
8
legislative action necessary to achieve the goals of the
9
Approved System-Wide Educational Reform Goals and Objectives
10
Plan.
11
(Source: P.A. 100-1148, eff. 12-10-18.)

HB4017
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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

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