HB 3523

Abstract

Amends the Treasurers Article of the School Code. Removes provisions allowing the school treasurer to execute a bond with 2 or more persons having an interest in real estate who are not trustees before beginning the treasurer's duties. Provides that, for those school districts that have a designation of recognition or review according to the State Board of Education's School District Financial Profile System, the penalty of the bond shall be determined by the school board in an amount no less than 10% of the amount of all bonds, notes, mortgages, moneys and effects the treasurer will have custody over as measured by specified provisions (rather than an initial penalty of 25% with the penalty increasing and decreasing based on specified factors, but not higher than 25%). Provides that, for those districts that have no designation of recognition or review, then the penalty shall be 25%. Amends the Debt Limitation Article of the School Code to make conforming changes. Effective immediately. House Floor Amendment No. 1 Replaces everything after the enacting clause. Reinserts the contents of the introduced bill with the following changes. Provides that the penalty of the bond shall be determined by the school board in an amount no less than 10% of the amount of all bonds, notes, mortgages, moneys, and effects (instead of providing that for those school districts that have a designation of recognition or review according to the State Board of Education's School District Financial Profile System, the penalty of the bond shall be determined by the school board in an amount no less than 10% of the amount of all bonds, notes, mortgages, moneys, and effects and that for all other school districts, the penalty of the bond shall be 25% of all bonds, notes, mortgages, moneys, and effects). Provides that a treasurer shall, before receiving any borrowed money, execute a bond with a surety company authorized to do business in this State (instead of with 2 or more persons having an interest in real estate, who shall not be trustees, or a surety company authorized to do business in this State). Effective immediately.