HB2996 100TH GENERAL ASSEMBLY

LRB100 04153 NHT 15669 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2996

Introduced , by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Procurement Code. Removes procurement expenditures made by the University of Illinois from the application of the Act and the University of Illinois from the definition of "State agency". Amends the State Property Control Act to remove property of the University of Illinois from the definition of "property" (but still requires the University of Illinois to send usable, surplus equipment to the Department of Central Management Services for transfer or disposal). Amends the University of Illinois Act. Under a University of Illinois Investment, Performance, and Accountability Commitment, requires the State to annually appropriate a minimum specified amount, provided that the University meets certain requirements at its campuses. Provides for an annual report, and repeals the Commitment on June 30, 2022. Provides for the issuance of certificates of participation for capital improvements, to be reviewed by the Commission on Government Forecasting and Accountability. Requires the maximum annual debt service for the University's total certificate of participation obligation to not exceed $100,000,000. Subject to appropriation, provides for an Illinois Excellence Program to recruit and retain promising faculty throughout the University of Illinois system through capital investment in both new and distressed facilities; amends the State Finance Act to create a special fund. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning education.

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

Section 5. The State Finance Act is amended by adding Section 5.878 as follows:

(30 ILCS 105/5.878 new)

Sec. 5.878. The Illinois Excellence Fund.

Section 10. The Illinois Procurement Code is amended by changing Sections 1-10 and 1-15.100 as follows:

(30 ILCS 500/1-10)

Sec. 1-10. Application.

(a) This Code applies only to procurements for which bidders, offerors, potential contractors, or contractors were first solicited on or after July 1, 1998. This Code shall not be construed to affect or impair any contract, or any provision of a contract, entered into based on a solicitation prior to the implementation date of this Code as described in Article 99, including but not limited to any covenant entered into with respect to any revenue bonds or similar instruments. All procurements for which contracts are solicited between the effective date of Articles 50 and 99 and July 1, 1998 shall be substantially in accordance with this Code and its intent.

(b) This Code shall apply regardless of the source of the funds with which the contracts are paid, including federal assistance moneys. This Code shall not apply to:

(1) Contracts between the State and its political subdivisions or other governments, or between State governmental bodies except as specifically provided in this Code.

(2) Grants, except for the filing requirements of Section 20-80.

(3) Purchase of care.

(4) Hiring of an individual as employee and not as an independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual.

(5) Collective bargaining contracts.

(6) Purchase of real estate, except that notice of this type of contract with a value of more than $25,000 must be published in the Procurement Bulletin within 10 calendar days after the deed is recorded in the county of jurisdiction. The notice shall identify the real estate purchased, the names of all parties to the contract, the value of the contract, and the effective date of the contract.

(7) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations, provided that the chief legal counsel to the Governor shall give his or her prior approval when the procuring agency is one subject to the jurisdiction of the Governor, and provided that the chief legal counsel of any other procuring entity subject to this Code shall give his or her prior approval when the procuring entity is not one subject to the jurisdiction of the Governor.

(8) Contracts for services to Northern Illinois University by a person, acting as an independent contractor, who is qualified by education, experience, and technical ability and is selected by negotiation for the purpose of providing non-credit educational service activities or products by means of specialized programs offered by the university.

(9) Procurement expenditures by the Illinois Conservation Foundation when only private funds are used.

(10) Procurement expenditures by the Illinois Health Information Exchange Authority involving private funds from the Health Information Exchange Fund. "Private funds" means gifts, donations, and private grants.

(11) Public-private agreements entered into according to the procurement requirements of Section 20 of the Public-Private Partnerships for Transportation Act and design-build agreements entered into according to the procurement requirements of Section 25 of the Public-Private Partnerships for Transportation Act.

(12) Contracts for legal, financial, and other professional and artistic services entered into on or before December 31, 2018 by the Illinois Finance Authority in which the State of Illinois is not obligated. Such contracts shall be awarded through a competitive process authorized by the Board of the Illinois Finance Authority and are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code, as well as the final approval by the Board of the Illinois Finance Authority of the terms of the contract.

(13) The provisions of this paragraph (13), other than this sentence, are inoperative on and after January 1, 2019 or 2 years after the effective date of this amendatory Act of the 99th General Assembly, whichever is later. Contracts for services, commodities, and equipment to support the delivery of timely forensic science services in consultation with and subject to the approval of the Chief Procurement Officer as provided in subsection (d) of Section 5-4-3a of the Unified Code of Corrections, except for the requirements of Sections 20-60, 20-65, 20-70, and 20-160 and Article 50 of this Code; however, the Chief Procurement Officer may, in writing with justification, waive any certification required under Article 50 of this Code. For any contracts for services which are currently provided by members of a collective bargaining agreement, the applicable terms of the collective bargaining agreement concerning subcontracting shall be followed.

(14) Procurement expenditures made by the Board of Trustees of the University of Illinois.

Notwithstanding any other provision of law, contracts entered into under item (12) of this subsection (b) shall be published in the Procurement Bulletin within 14 calendar days after contract execution. The chief procurement officer shall prescribe the form and content of the notice. The Illinois Finance Authority shall provide the chief procurement officer, on a monthly basis, in the form and content prescribed by the chief procurement officer, a report of contracts that are related to the procurement of goods and services identified in item (12) of this subsection (b). At a minimum, this report shall include the name of the contractor, a description of the supply or service provided, the total amount of the contract, the term of the contract, and the exception to the Code utilized. A copy of each of these contracts shall be made available to the chief procurement officer immediately upon request. The chief procurement officer shall submit a report to the Governor and General Assembly no later than November 1 of each year that shall include, at a minimum, an annual summary of the monthly information reported to the chief procurement officer.

(c) This Code does not apply to the electric power procurement process provided for under Section 1-75 of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act.

(d) Except for Section 20-160 and Article 50 of this Code, and as expressly required by Section 9.1 of the Illinois Lottery Law, the provisions of this Code do not apply to the procurement process provided for under Section 9.1 of the Illinois Lottery Law.

(e) This Code does not apply to the process used by the Capital Development Board to retain a person or entity to assist the Capital Development Board with its duties related to the determination of costs of a clean coal SNG brownfield facility, as defined by Section 1-10 of the Illinois Power Agency Act, as required in subsection (h-3) of Section 9-220 of the Public Utilities Act, including calculating the range of capital costs, the range of operating and maintenance costs, or the sequestration costs or monitoring the construction of clean coal SNG brownfield facility for the full duration of construction.

(f) This Code does not apply to the process used by the Illinois Power Agency to retain a mediator to mediate sourcing agreement disputes between gas utilities and the clean coal SNG brownfield facility, as defined in Section 1-10 of the Illinois Power Agency Act, as required under subsection (h-1) of Section 9-220 of the Public Utilities Act.

(g) This Code does not apply to the processes used by the Illinois Power Agency to retain a mediator to mediate contract disputes between gas utilities and the clean coal SNG facility and to retain an expert to assist in the review of contracts under subsection (h) of Section 9-220 of the Public Utilities Act. This Code does not apply to the process used by the Illinois Commerce Commission to retain an expert to assist in determining the actual incurred costs of the clean coal SNG facility and the reasonableness of those costs as required under subsection (h) of Section 9-220 of the Public Utilities Act.

(h) This Code does not apply to the process to procure or contracts entered into in accordance with Sections 11-5.2 and 11-5.3 of the Illinois Public Aid Code.

(i) Each chief procurement officer may access records necessary to review whether a contract, purchase, or other expenditure is or is not subject to the provisions of this Code, unless such records would be subject to attorney-client privilege.

(j) This Code does not apply to the process used by the Capital Development Board to retain an artist or work or works of art as required in Section 14 of the Capital Development Board Act.

(k) This Code does not apply to the process to procure contracts, or contracts entered into, by the State Board of Elections or the State Electoral Board for hearing officers appointed pursuant to the Election Code.

(Source: P.A. 98-90, eff. 7-15-13; 98-463, eff. 8-16-13; 98-572, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1076, eff. 1-1-15; 99-801, eff. 1-1-17.)

(30 ILCS 500/1-15.100)

Sec. 1-15.100. State agency. "State agency" means and includes all boards, commissions, agencies, institutions, authorities, and bodies politic and corporate of the State, created by or in accordance with the constitution or statute, of the executive branch of State government and does include colleges, universities, and institutions under the jurisdiction of the governing boards of the University of Illinois, Southern Illinois University, Illinois State University, Eastern Illinois University, Northern Illinois University, Western Illinois University, Chicago State University, Governor State University, Northeastern Illinois University, and the Board of Higher Education. However, this term does not apply to public employee retirement systems or investment boards that are subject to fiduciary duties imposed by the Illinois Pension Code or to the University of Illinois Foundation or the Board of Trustees of the University of Illinois. "State agency" does not include units of local government, school districts, community colleges under the Public Community College Act, and the Illinois Comprehensive Health Insurance Board.

(Source: P.A. 90-572, eff. 2-6-98.)

Section 15. The State Property Control Act is amended by changing Sections 1.02 and 7.3 as follows:

(30 ILCS 605/1.02) (from Ch. 127, par. 133b3)

Sec. 1.02. "Property" means State owned property and includes all real estate, with the exception of rights of way for State water resource and highway improvements, traffic signs and traffic signals, and with the exception of common school property; and all tangible personal property with the exception of properties specifically exempted by the administrator, provided that any property originally classified as real property which has been detached from its structure shall be classified as personal property.

"Property" does not include property owned by the Illinois Medical District Commission and leased or occupied by others for purposes permitted under the Illinois Medical District Act. "Property" also does not include property owned and held by the Illinois Medical District Commission for redevelopment.

"Property" does not include property described under Section 5 of Public Act 92-371 with respect to depositing the net proceeds from the sale or exchange of the property as provided in Section 10 of that Act.

"Property" does not include that property described under Section 5 of Public Act 94-405.

"Property" does not include real property owned or operated by the Illinois Power Agency or any electricity generated on that real property or by the Agency. For purposes of this subsection only, "real property" includes any interest in land, all buildings and improvements located thereon, and all fixtures and equipment used or designed for the production and transmission of electricity located thereon.

"Property" does not include property owned by the Board of Trustees of the University of Illinois or leased property utilized for purposes permitted under the University of Illinois Act.

(Source: P.A. 94-405, eff. 8-2-05; 95-331, eff. 8-21-07; 95-481, eff. 8-28-07.)

(30 ILCS 605/7.3) (from Ch. 127, par. 133b10.3)

Sec. 7.3. (a) The Administrator shall have charge of all transferable property and shall have authority to take possession and control of such property in order to transfer or assign any such property to any other State agency that has need or use for such property or to dispose of said property in accordance with Section 7 of this Act.

The Administrator may not dispose of a transferable airplane by sale until he or she determines that (i) the agency no longer has a need for the airplane, (ii) the airplane will not be used as a trade-in on another aircraft, and (iii) no public university or college in Illinois that offers courses in aviation, flight training, or other subjects involving knowledge of the workings of an airplane has listed the need for an airplane as provided in this Section.

Responsible officers shall periodically report all transferable property at locations under their jurisdictions to the Administrator. The Administrator shall review such reports and arrange for physical examination of said property if necessary to determine if said items of transferable property should be transferred to another State agency, transferred to a central warehouse, or disposed of. The Administrator shall advise responsible officers of the results of these reviews as necessary.

The staff under the jurisdiction of the Administrator shall review as necessary State agencies' inventories for potential items of transferable property. If in the opinion of the Administrator's staff, any property appears to be transferable, the Administrator shall notify the responsible officer of his determination. The executive head of the agency holding the property in question may appeal the determination in writing to the Administrator.

The Administrator will review the determination in accordance with rules and procedures established pursuant to Section 5 of this Act.

The Administrator shall maintain lists of transferable property and of State agency needs for such property and will transfer where appropriate listed transferable property to agencies listing their needs for such property as detailed by their responsible officers. The Administrator must give priority for transfer of an airplane, that is not to be used as a trade-in, to a public university or college in Illinois that offers courses in aviation, flight training, or other subjects involving knowledge of the workings of an airplane and that has listed the need for an airplane.

(b) On and after the effective date of this amendatory Act of the 100th General Assembly, the University of Illinois shall continue to cooperate with the Administrator as it did before the effective date of this amendatory Act of the 100th General Assembly by sending usable, surplus equipment to the Administrator, enabling the Administrator to transfer or assign that equipment to any other State agency that has need or use for the equipment or to dispose of the equipment in accordance with this Section and Section 7 of this Act.

(Source: P.A. 91-432, eff. 1-1-00.)

Section 20. The University of Illinois Act is amended by adding Sections 100, 105, and 110 as follows:

(110 ILCS 305/100 new)

Sec. 100. University of Illinois Investment, Performance, and Accountability Commitment.

(a) This Section may be referred to as the University of Illinois Investment, Performance, and Accountability Commitment.

(b) For Fiscal Year 2018, the General Assembly shall appropriate and the State Comptroller shall make available to the University an amount for operations that is not less than $662,100,000. For Fiscal Year 2019 and every fiscal year thereafter, the General Assembly shall appropriate, before the beginning of each fiscal year, an amount not less than the amount appropriated for operations in the prior fiscal year, increased by a percentage equal to the percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics of the United States Department of Labor for the 12 months ending on the previous December 31, and the State Comptroller shall make available to the University within 12 months from the effective date of the appropriation an amount for operations that is not less than the amount appropriated and made available to the University for the prior fiscal year. The State Comptroller shall make timely payments, within 90 days after receipt, to the University on vouchers for the appropriations received from the University. University vouchers not paid within 90 days after receipt by the State Comptroller shall accrue interest paid by the State Comptroller to the University at a rate of 1% per month. The General Assembly shall appropriate annually and the State Comptroller shall make available payments for the employer's share of pension costs under the Illinois Pension Code and healthcare costs under the State Employees Group Insurance Act of 1971 for the covered employees of the University.

(c) In this subsection (c), "mandatory fees" excludes mandatory fees approved by students by referendum. Beginning with the 2018-2019 academic year, the Board of Trustees may not increase the base rate of in-State, undergraduate tuition and mandatory fees by more than the rate of inflation, if any, as measured by the Consumer Price Index for all Urban Consumers (CPI-U) published by the Bureau of Labor Statistics of the United States Department of Labor for the 12 months ending on the previous December 31 above the base rate of in-State, undergraduate tuition and mandatory fees set by the Board of Trustees for an undergraduate academic program in the previous academic year. This subsection (c) does not apply to health insurance fees, fees approved prior to the effective date of this amendatory Act of the 100th General Assembly, or fees approved by a student referendum.

(d) For Fiscal Year 2018 and every fiscal year thereafter, the University shall provide to residents of this State need-based financial aid in an amount that is not less than 12.5% of the University's appropriation. At least $15,000,000 of this financial aid shall be provided annually to Illinois students of historically underrepresented populations. Such students shall include the following:

(1) students who are Black or African American, Hispanic or Latino, American Indian or Alaska Native, or Native Hawaiian or Other Pacific Islander;

(2) students from counties in this State from which the University of Illinois at Urbana-Champaign campus, the University of Illinois at Chicago campus, and the University of Illinois at Springfield campus combined have enrolled on average 2 or fewer students from the county over the last 3 years; and

(3) students from families who are classified as in poverty with an expected family contribution equal to zero.

(e) For the 2018-2019 academic year and every academic year thereafter, the University shall achieve performance goals defined by all of the following key performance indicators:

(1) The Board of Trustees shall admit no fewer than 14,000 residents of this State in undergraduate programs at the University of Illinois at Urbana-Champaign campus, 11,800 residents of this State in undergraduate programs at the University of Illinois at Chicago campus, and 1,500 residents of this State in undergraduate programs at the University of Illinois at Springfield campus, provided the requisite number of residents of this State seeking admission to undergraduate programs at the University meet the requirements of Section 8 of this Act. Residents of this State must comprise at least 50%, combined, of any growth in on-campus undergraduate enrollment above the level for the 2015-2016 academic year.

(2) The University shall maintain a first-to-second year retention rate in undergraduate programs greater than or equal to a combined 87% at the University of Illinois at Urbana-Champaign campus, the University of Illinois at Chicago campus, and the University of Illinois at Springfield campus.

(3) The University shall maintain a 6-year graduation rate for first-time freshmen in undergraduate programs greater than or equal to a combined 72% at the University of Illinois at Urbana-Champaign campus, the University of Illinois at Chicago campus, and the University of Illinois at Springfield campus.

For any academic year in which the University does not meet or exceed the key performance indicators listed in this subsection (e), the appropriation required by subsection (b) of this Section for the following fiscal year may be adjusted appropriately by the passage of a joint resolution of the General Assembly. However, any adjustment made under this subsection (e) must not be the basis for any future fiscal year appropriation under subsection (b) of this Section. If an adjustment is made under this subsection (e), the basis for any future fiscal year appropriation under subsection (b) of this Section must be the previous fiscal year in which an adjustment was not made.

(f) Beginning September 1, 2018 and every September 1 thereafter, the University shall publish on its website and make publicly available an annual report related to the previous academic and fiscal year at the University of Illinois at Urbana-Champaign campus, at the University of Illinois at Chicago campus, and at the University of Illinois at Springfield campus. The annual report shall include all of the following information:

(1) The number of first-time freshmen enrolled.

(2) The number of new transfer students enrolled.

(3) The number of undergraduates enrolled who are residents of this State.

(4) The number of underrepresented minority undergraduate students enrolled.

(5) The total undergraduate enrollment.

(6) The number of undergraduate degrees issued.

(7) The number of graduate degrees issued.

(8) The number of professional degrees issued.

(9) The total number of degrees issued.

(10) The number of science, technology, engineering, and mathematics degrees issued.

(11) The direct appropriation per undergraduate degree.

(12) The direct appropriation per undergraduate degree issued to a resident of this State.

(13) The direct appropriation as a percentage of total expenditures.

(14) The number of undergraduate students enrolled in each college of each campus.

(15) The number of undergraduate students who are residents of this State enrolled in each college of each campus.

(g) The requirements of subsections (c), (d), and (e) of this Section are not applicable to the University in any fiscal year in which the General Assembly fails to appropriate and the State Comptroller fails to make available the amounts required under subsection (b) of this Section.

(h) This Section is repealed on June 30, 2022.

(110 ILCS 305/105 new)

Sec. 105. Certificates of participation for capital improvements.

(a) For the purposes of this Section, "Commission" means the Commission on Government Forecasting and Accountability.

(b) The power of the Board of Trustees to enter into contracts includes the power to enter into financing agreements in connection with the financing of capital improvements, including technology or other related improvements, by selling certificates of participation in the installment payments made under such financing agreements. These financing agreements may be entered into for any period of time less than or equal to 30 years, but not to exceed the useful life of the capital improvement. Nothing in this Section authorizes the Board to incur State debt, as that term is defined in subsection (a) of Section 9 of Article IX of the Constitution of the State of Illinois.

(c) Upon determination by the Board to undertake a transaction for the sale of certificates of participation and enter into related financing agreements in connection with the financing of capital improvements, the Board shall adopt a resolution or resolutions describing in a general way the contemplated facilities or a combination thereof designated as the project, the estimated cost thereof, and any additional relevant information.

(d) Before issuance of any certificate of participation, the Board or its representatives shall appear before the Commission and present the details of the proposal. This presentation shall include such information as the Commission may request in relation to the proposed certificate of participation issuance. This information shall include, but is not limited to, the amount being financed, the nature of the project being financed, the proposed funding stream to pay for the certificate of participation issuance, the current outstanding indebtedness of the University, and the status of all currently issued certificates of participation.

Upon receipt of a request by the University for a certificate of participation presentation, the Commission shall hold a public hearing and, upon adoption by a vote of the majority of appointed members, issue a record of findings in regards to the issuance of the certificate of participation within 60 days after the request.

As part of the Commission's considerations and findings, the Commission shall consider the effect the issuance of a certificate of participation shall have on the University's annual debt service and overall fiscal condition.

Within the Commission's findings must be a statement in which the Commission makes a recommendation to the University as to proceeding with the certificate of participation issuance. The recommendation shall be either (i) "favorably recommended", (ii) "recommended with concerns", or (iii) "non-support of issuance".

The Commission shall report the findings within 15 days after the hearing to all of the following:

(1) The Speaker of the House of Representatives.

(2) The Minority Leader of the House of Representatives.

(3) The President of the Senate.

(4) The Minority Leader of the Senate.

(5) The Governor's Office of Management and Budget.

(6) The President of the University.

Upon a finding of "non-support of issuance", the University may not proceed with the issuance of the certificate of participation involved in the finding without the approval of the General Assembly through the adoption of a joint resolution.

(e) Upon receipt of the external Auditor General audit report of each year, the University shall file with the Commission a report stating the status of all outstanding certificates of participation the University has issued and a copy of the annual budget as approved by the Board.

(f) Each issuance of a certificate of participation shall include within the appropriate documents related to its execution the following statement, which sets forth required limitations in relation to the certificate:

"THE BOARD OF TRUSTEES' OBLIGATION TO MAKE INSTALLMENT PAYMENTS DOES NOT CONSTITUTE A DEBT OF THE BOARD OR THE STATE OF ILLINOIS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY LIMITATION. THE INSTALLMENT PAYMENTS REQUIRED UNDER CERTIFICATES OF PARTICIPATION INCURRED BY THE UNIVERSITY ARE NOT SECURED BY THE FULL FAITH AND CREDIT OF THE STATE AND ARE NOT REQUIRED TO BE REPAID AND MAY NOT BE REPAID, DIRECTLY OR INDIRECTLY, FROM TAX REVENUE.".

(g) The maximum annual debt service for the University's total certificate of participation obligation must not exceed $100,000,000.

(110 ILCS 305/110 new)

Sec. 110. Illinois Excellence Program. Subject to appropriation, the Board of Trustees shall establish and administer a program, to be called the Illinois Excellence Program, to recruit and retain promising faculty throughout the University of Illinois system through capital investment in both new and distressed facilities. The Program shall focus on capital investment in facilities designed to attract and retain sought-after faculty to the University of Illinois system.

The Illinois Excellence Fund is created as a special fund in the State treasury. All money in the Fund may be used, subject to appropriation, by the Board of Trustees for the administration of the Illinois Excellence Program.

Section 99. Effective date. This Act takes effect upon becoming law.