SB2100 94TH GENERAL ASSEMBLY

LRB094 11273 JAM 42049 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2100

Introduced 2/25/2005, by Sen. Jeffrey M. Schoenberg

SYNOPSIS AS INTRODUCED:

New Act
5 ILCS 120/2	from Ch. 102, par. 42
10 ILCS 5/Art. 28A heading new
10 ILCS 5/28A-5 new
10 ILCS 5/28A-10 new
10 ILCS 5/28A-15 new
10 ILCS 5/28A-20 new
10 ILCS 5/28A-25 new
10 ILCS 5/28A-30 new
10 ILCS 5/28A-35 new
10 ILCS 5/28A-40 new
30 ILCS 105/5.640 new
30 ILCS 105/6z-100 new
30 ILCS 105/6z-105 new
30 ILCS 330/2	from Ch. 127, par. 652
30 ILCS 330/6.5 new
30 ILCS 330/12	from Ch. 127, par. 662
30 ILCS 330/19	from Ch. 127, par. 669

Creates the Illinois Regenerative Medicine Institute Act. Requires that the 2006 general election ballot include the proposition that the State issue $1,000,000,000 in general obligation bonds in support of stem cell research. Creates the Illinois Regenerative Medicine Institute Creation Act to provide for the governance and operation of the institute, which awards grants and loans for the research. Creates the Cosmetic Medical Procedure Utilization Tax Act to impose a tax upon the privilege of using cosmetic medical procedures at the rate of 6% of gross receipts. Amends the Open Meetings Act to permit closed meetings of the Institute's Oversight Committee and advisory panels on certain confidential topics. Amends the Election Code to provide for placement on the ballot of debt issuance referenda under the Revenue Article of the Illinois Constitution. Amends the State Finance Act to provide various funds for the institute operations, the tax proceeds, and the bond proceeds and retirement. Amends the General Obligation Bond Act to provide for the issuance and use of $1,000,000,000 in bonds. Effective January 1, 2006, except for those portions (institute creation, tax imposition, and bond issuance) conditioned upon voter approval.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

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

ARTICLE 1

Section 1-1. Short title. This Act may be cited as the Illinois Regenerative Medicine Institute Act.

Section 1-5. Single law; purpose. The Illinois Regenerative Medicine Institute Act and the amendatory changes made in Article 90 of this Act to the Election Code, the State Finance Act, and the General Obligation Bond Act shall be considered a single "law" for purposes of Section 9(b) of Article IX of the Illinois Constitution. The various parts of this law authorize the State to issue State debt and provide for the specific purposes and the manner of repayment of that debt.

Section 1-10. Legislative intent. This Act is intended to:

(1) Create a research institute to support stem cell research at Illinois universities and other advanced medical research facilities throughout the State.

(2) Maximize the use of research funds by giving priority to stem cell research that has the greatest potential for therapies and cures that cannot or are unlikely to receive timely or sufficient federal funding.

(3) Ensure that the research is conducted safely and ethically by including provisions to require compliance with standards based on national models that protect patient safety, patient rights, patient privacy, and prohibit the purchase or sale of embryonic or fetal tissue for research purposes.

(4) Prohibit the use of State funds made available pursuant to this Act for research involving human reproductive cloning, fetuses from induced abortions, or the creation of embryos through the combination of gametes solely for the purpose of research.

(5) Reduce the long-term health care cost burden on Illinois through the development of therapies that treat diseases and injuries with the ultimate goal to cure them.

(6) Require strict fiscal and public accountability through mandatory independent audits, open meetings, public hearings, open access to published papers, and annual reports to the public and the General Assembly.

(7) Establish a system of governance for the institute that draws on representatives from the Illinois medical research and academic community, Illinois disease advocacy groups, and Illinois experts in the development of medical therapies and thereby insulates research decisions from partisan political concerns.

(8) Establish new funding sources to pay the debt service on the bonds issued to fund medical and basic scientific research that will eventually produce royalties, patents, and licensing fees for the State and significantly reduce future State health care costs; a tax on the use of medical procedures raises revenue from an industry that is expected to benefit from such research, and using definitions from the federal tax code to exclude medically-necessary procedures builds upon the public policy decisions made by Congress in the field of health care taxation.

(9) Benefit the Illinois economy by creating projects, jobs, and therapies that will generate significant new economic activity for the State.

Section 1-15. Referendum. Pursuant to Section 9(b) of Article IX of the Illinois Constitution, the electors of the State of Illinois shall vote in the 2006 general election whether to approve this Illinois Regenerative Medicine Institute Act and to incur a State debt not to exceed $1,000,000,000 as provided in this Act. The question shall be substantially as follows: "Shall the State of Illinois from time to time issue general obligation bonds in a principal amount not to exceed $1,000,000,000 for the purposes of establishing and funding the Illinois Regenerative Medicine Institute to support stem cell research at Illinois universities and other research facilities throughout Illinois, all pursuant to the Illinois Regenerative Medicine Institute Act enacted by the 94th General Assembly and the General Obligation Bond Act?". Spaces to mark the ballot "Yes" or "No" shall be provided. The question shall appear under the heading "The Illinois Regenerative Medicine Institute Act".

Section 1-20. Simple majority required. Because this Act provides for approval by a majority of the electors voting on the question at the next general election following passage, pursuant to subsection (b) of Section 9 of Article IX of the Illinois Constitution, this Act requires the affirmative vote of a simple majority of the members elected to each house of the General Assembly, and not a three-fifths majority.

ARTICLE 5

Section 5-1. Short title. This Article may be cited as the Illinois Regenerative Medicine Institute Creation Act.

Section 5-5. Definitions.

"Adult stem cell" means an undifferentiated cell found in a differentiated tissue in an adult human that can renew itself and may, with certain limitations, differentiate to yield all the specialized cell types of the tissue from which it originated.

"Executive Director" means the Executive Director of the institute.

"IRMI" or "institute" means the Illinois Regenerative Medicine Institute.

"Oversight Committee" means the IRMI Oversight Committee.

"Pluripotent cells" means cells that are capable of self-renewal and have broad potential to differentiate into multiple cell types. Pluripotent stem cells may be derived from somatic cell nuclear transfer or from surplus embryos produced during in vitro fertilization treatments and donated under appropriate informed consent procedures. These excess cells from in vitro fertilization treatments would otherwise be intended to be discarded if not used for medical research.

"Progenitor cells" means multipotent or precursor cells that are partially differentiated but retain the ability to divide and give rise to differentiated cells.

"Stem cells" mean nonspecialized cells that have the capacity to divide in culture and to differentiate into more mature cells with specialized functions.

Section 5-10. Institute creation; purpose; powers.

(a) There is established the Illinois Regenerative Medicine Institute.

(b) The institute shall have the following purposes:

(1) To make grants and loans for stem cell research to realize therapies, protocols, and medical procedures that will result in, as speedily as possible, the cure for, and substantial mitigation of, major diseases, injuries, and orphan diseases.

(2) To support all stages of the process of developing cures, from laboratory research through successful clinical trials.

(3) To establish the appropriate regulatory standards and oversight bodies for research and facilities development.

(c) Notwithstanding any other provision of this or any other law, the institute may use State issued bonds to fund medical and basic scientific research involving stem cells, including therapy development through clinical trials and facilities.

Section 5-15. State policy on stem cell research; criminal penalties.

(a) It is the policy of the State to permit stem cell research that includes research involving adult stem cells, cord blood stem cells, pluripotent stem cells, progenitor cells, or any combination of those cells.

(b) No funds authorized for, or made available to, the institute shall be used for research involving human reproductive cloning or fetuses from induced abortions or to create embryos through the combination of gametes solely for the purpose of research.

(c) A person who knowingly engages or assists, directly or indirectly, in the cloning of a human being is guilty of a Class 1 felony. As used in this Section, "cloning of a human being" means the asexual human reproduction by implanting or attempting to implant the product of nuclear transplantation into a woman's uterus to initiate a pregnancy or the replication of a human being through the production of a precise genetic copy of human DNA or any other molecule, cell, or tissue, in order to create a new human being.

(d) A person may not knowingly, for valuable consideration, purchase or sell embryonic or cadaveric fetal tissue for research purposes.

For the purposes of this subsection, payment of customary medical charges for the removal, processing, disposal, preservation, quality control, storage, transplantation, or implantation of the tissue does not constitute valuable consideration. This subsection does not prohibit reimbursement for removal, storage, or transportation of embryonic fetal tissue for research purposes pursuant to this Act.

A person who knowingly purchases or sells embryonic tissue for research purposes in violation of this Section is guilty of a Class A misdemeanor for the first conviction and a Class 4 felony for subsequent convictions.

Section 5-20. Illinois Regenerative Medicine Institute Oversight Committee.

(a) The Oversight Committee shall be composed of 7 members. Members shall come from the medical community or the scientific research community and shall have experience in peer review and scientific grant making. Members shall be as follows:

(1) Two members to be appointed by the Governor with the advice and consent of the Senate.

(2) Two members to be appointed by the Comptroller with the advice and consent of the Senate.

(3) Two members to be appointed by the Treasurer with the advice and consent of the Senate.

(4) The Director of Public Health.

(b) At the time of appointment, the Governor shall designate one member to serve a 2-year term and one member to serve a 6-year term, the Comptroller shall designate one member to serve a 4-year term and one to serve a 6-year term, and the Treasurer shall designate one member to serve a 2-year term and one to serve a 4-year term. Thereafter, appointments, other than the Director of Public Health who shall serve ex officio, shall be for a term of 6 years. A member shall serve until his or her successor appointed and qualified for office by filing the oath and bond.

No member of the Oversight Committee may receive compensation for his or her services, but each member may be reimbursed for expenses incurred in the performance of his or her duties.

(c) Every 4 years the Oversight Committee shall choose from its membership a Chairperson, a Vice-Chairperson, and a Secretary. The Chairperson shall preside at meetings of the Oversight Committee and shall have other duties as provided for in this Article or as provided for by the Oversight Committee. The Vice-Chairperson shall preside at meetings whenever the Chairperson is unable to attend or preside. The Secretary shall ensure that an accurate record is made of all proceedings of the Oversight Committee and shall have other duties as provided for in this Article or as provided for by the Oversight Committee.

(d) The Oversight Committee shall hold at least 4 public meetings per year, one of which shall be designated as the institute's annual meeting. The Oversight Committee may hold additional meetings as it determines are necessary or appropriate.

(e) The Oversight Committee shall award all grants, loans, and contracts in public meetings and shall adopt and amend all governance, scientific, medical, and regulatory standards in public meetings.

(f) The Oversight Committee functions are:

(1) Oversee the operations of the institute and appoint an Executive Director for the institute.

(2) Develop annual and long-term strategic research and financial plans for the institute.

(3) Approve an annual budget for the institute.

(4) Make final decisions on research standards and grant and loan awards.

(5) Approve appointments to the institute's various advisory panels.

(6) Ensure the completion of an annual financial audit of the institute's operations.

(7) Issue public reports on the activities of the institute and to the extent possible provide open access to published papers.

(8) Amend policies regarding intellectual property rights arising from research funded by the institute.

(9) Amend rules and guidelines for the operation of the institute.

(10) Adopt, amend, and rescind rules to carry out the purposes and provisions of this Article, and to govern the procedures of the institute.

The Illinois Administrative Procedure Act, including review by the Joint Committee on Administrative Rules, is hereby expressly adopted and shall apply to all administrative rules and procedures adopted by the Oversight Committee. The Oversight Committee may use its emergency rulemaking authority to adopt initial rules. The General Assembly finds that the adoption of rules to implement this Article is deemed an emergency and necessary for the public interest, safety, and welfare.

(11) Request the issuance of bonds pursuant to Section 6.5 of the General Obligation Bond Act with the proceeds to be deposited into the Regenerative Medicine Bond Fund and expend the proceeds of those bonds. The Oversight Committee, however, shall not request the issuance of bonds unless, based on estimates and reports from the Commission on Government Forecasting and Accountability, the Comptroller, and the Governor's Office of Management and Budget, the funds in the Cosmetic Medical Procedure Utilization Tax Fund and the Regenerative Medicine Institute Operations Fund are reasonably estimated to be sufficient to pay the debt service on such bonds issued pursuant to Section 6.5 of the General Obligation Bond Act.

(12) Use funds from the Regenerative Medicine Institute Operations Fund for its operations and activities.

(13) Annually modify its funding and finance programs to optimize the institute's ability to achieve the objective that its activities be revenue-positive for the State of Illinois without jeopardizing the progress of its core medical and scientific research program.

(14) Accept additional revenue and real and personal property, including but not limited to gifts, royalties, interest, and appropriations that may be used to supplement annual research grant funding and the operations of the institute.

(15) At the institute's discretion, fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses, including without limitation any application fees, grant administration fees, program fees, financing charges, or publication fees from any person in connection with its activities.

(16) Perform all other acts necessary or appropriate in the exercise of its power, authority, and jurisdiction over the institute.

Section 5-25. Advisory panels.

(a) The Chairperson of the Oversight Committee shall appoint persons, with the advice and consent of a majority of the Oversight Committee, to serve on various advisory panels.

The Oversight Committee shall determine the number and size of advisory panels to be appointed.

Persons appointed to advisory panels shall have expertise in medical or stem cell research as researchers, physicians, ethicists, or administrators.

(b) The advisory panels shall review and make a recommendation on the merits of all grant and loan proposals prior to final action by the Oversight Committee.

(c) The advisory panels shall follow the current Review Procedures for Scientific Review Group Meetings as stipulated by the National Institutes of Health, Center for Scientific Review.

(d) Each advisory panel shall hold at least 2 public meetings per year. Advisory panels may hold additional meetings as necessary or appropriate.

Section 5-30. Applicability of open government and ethics laws.

(a) Nothing in this Act shall exempt the Oversight Committee or the various advisory panels from the Open Meetings Act.

(b) Nothing in this Act shall exempt the institute, including the Oversight Committee and the various advisory panels, from the Freedom of Information Act or the State Records Act.

(c) The State Officials and Employees Ethics Act and Article 4A of the Illinois Governmental Ethics Act shall apply to members of the Oversight Committee, the various advisory panels, and employees of the institute.

(d) No member of the Oversight Committee, the various advisory panels, or employee of the institute shall make, participate in making, or in any way attempt to use his or her official position to influence a decision to approve or award a grant, loan, or contract to his or her employer (or another employee of his or her employer), but a member may participate in a decision to approve or award a grant, loan, or contract to a nonprofit entity in the same field as his or her employer.

A member of the Oversight Committee, the various advisory panels, or the institute may participate in a decision to approve or award a grant, loan, or contract to an entity for the purposes of research involving a disease from which a member or his or her immediate family suffers or in which the member has an interest as a representative of a disease advocacy organization.

The adoption of standards pursuant to Section 5-40 of this Article is not a decision subject to this subsection.

The Oversight Committee shall adopt additional policies on ethics, including conflicts of interests, in order to minimize possible influences of personal finances and partisan political motivations on the decisions and activities of the institute, the various advisory panels, and the Oversight Committee. The initial policies on conflicts of interests shall be based on standards applicable to members of scientific review committees of the National Institutes of Health.

Section 5-35. Public and financial accountability standards.

(a) The institute shall issue an annual report to the public, the Governor, and the General Assembly that sets forth its activities, grants awarded, grants in progress, research accomplishments, and future program directions. Each annual report shall include but not be limited to the following: the number and dollar amounts of research grants; the grantees for the prior year; the institute's administrative expenses; an assessment of the available funding for stem cell research from sources other than the institute; a summary of research findings, including promising new research areas; an assessment of the relationship between the institute's grants and the overall strategy of its research program; and a report of the institute's strategic research and financial plans.

This report shall be posted on the institute's website and shall be available to the general public upon request.

(b) The institute shall issue quarterly reports throughout the fiscal year to the public, the Governor, and the General Assembly that should include the number and dollar amounts of the research grants, a summary of research findings, and an assessment of the relationship between the institute's grants and the overall strategy of its research program.

This report shall be posted on the institute's website and shall be available to the general public upon request.

(c) Subject to the Illinois State Auditing Act, the institute shall annually commission an independent financial audit of its activities and operations from a certified public accounting firm that shall be provided to the Auditor General, who shall review the audit and annually issue a public report of that review.

Section 5-40. Medical and scientific accountability standards.

(a) The institute and its grantees shall be governed solely by the provisions of this Article in the establishment of standards, the award of grants, and the conduct of grants awarded pursuant to this Article.

(b) The institute shall establish standards for the following:

(1) Informed consent. Standards for obtaining the informed consent of research donors, patients, or participants initially shall be generally based on the standards in place on January 1, 2006, for all research funded by the National Institutes of Health, with modifications to adapt to the mission and objectives of the institute.

(2) Controls on research involving humans. Standards for the review of research involving human subjects initially shall be generally based on the Institutional Review Board standards promulgated by the National Institutes of Health and in effect on January 1, 2006, with modifications to adapt to the mission and objective of the institute.

(3) Prohibition on compensation. Standards prohibiting compensation to research donors or participants shall permit reimbursement of expenses.

(4) Patient privacy laws. Standards shall ensure compliance with State and federal patient privacy laws.

(5) Limitations on payments for cells. Standards shall limit payments for the purchase of stem cells or stem cell lines to reasonable payment for removal, processing, disposal, preservation, quality control, storage, transplantation, implantation, or legal transaction or other administrative costs associated with these medical procedures and shall specifically include any required payments for medical or scientific technologies, products, or processes for royalties, patent, licensing fees, or other costs for intellectual property.

(6) Time limits for obtaining cells. Standards shall set a limit on the time during which cells may be extracted from blastocysts, which shall initially be 8 to 12 days after cell division begins, not counting any time during which the blastocysts or cells have been stored frozen.

Section 5-45. Institute operations.

(a) The institute may sue and be sued; provided that any suit against the institute based upon a claim sounding in tort must be filed in the Court of Claims.

Based upon institute standards, institute grantees shall indemnify or insure, and hold the institute harmless against any and all losses, claims, damages, expenses, or liabilities, including attorneys' fees, arising from research conducted by the grantee pursuant to the grant, or, in the alternative, grantees shall name the institute as an additional insured and submit proof of that insurance.

To the extent allowed under the Illinois Constitution and given the scientific, medical, and technical nature of the issues facing the institute, the institute is authorized to retain outside counsel when, after consultation with the Attorney General, the institute determines that the institute requires specialized services not provided by the Attorney General's office.

(a-5) The institute may enter into contracts or obligations that are authorized or permitted by law.

(b) The Oversight Committee shall select an Executive Director who shall exercise the powers delegated in this subsection.

The Executive Director shall be the chief administrative and operational officer of the institute, shall direct and supervise its administrative affairs and general management and perform such other duties as may be prescribed from time to time by the Oversight Committee, and shall receive compensation fixed by the Oversight Committee.

(c) The institute shall be subject to the Illinois Procurement Code. For purposes of the Illinois Procurement Code, the institute shall be considered an institute of higher education and use the services of the higher education chief procurement officer and the higher education procurement bulletin.

The institute shall ensure that grantees purchase goods and services from Illinois suppliers to the extent reasonably possible, in a good faith effort to achieve a goal of more than 50% of those purchases from Illinois suppliers.

(d) All grants and loan awards issued by the institute shall be subject to intellectual property agreements that provide protections and incentives to encourage both the discovery and development of new knowledge and its transfer for the public benefit.

(e) The institute shall hold ownership rights in all intellectual property created as a result of the grant or loan received by the creator or creators from the institute.

"Intellectual property" as used in this subsection is broadly defined to include inventions, discoveries, know-how, show-how, processes, unique materials, copyrightable works, original data, and other creative or artistic works that have value. Intellectual property includes that which is protectable by statute or legislation, such as patents, copyrights, trademarks, service marks, trade secrets, and mask works. It also includes the physical embodiments of intellectual effort, such as models, machines, devices, designs, apparatus, instrumentation, circuits, computer programs and visualizations, biological materials, chemicals, other compositions of matter, and records of research.

"Trademarks" and "service marks" are distinctive words or graphic symbols identifying the source, product, producer, or distributor of goods or services. Registration of trademarks or service marks, at the State or federal level, shall be approved by the Executive Director.

As used in this Section "creator" refers to an individual or group of individuals who make, conceive, reduce to practice, author, or otherwise make a substantive intellectual contribution to the creation of intellectual property. "Creator" includes the definition of "inventor" used in U.S. patent law and the definition of "author" used in the U.S. Copyright Act.

(f) All intellectual property in which the institute has an ownership interest under the provisions of this Article and that has the potential to be brought into practical use for public benefit or for which disclosure is required by law shall be reported promptly in writing by the creator or creators to the institute. The disclosure shall constitute a full and complete disclosure of the subject matter of the discovery or the development and identify all persons participating therein. The creator or creators shall furnish such additional information and execute such documents from time to time as may be reasonably requested.

(g) After evaluation of the intellectual property and review of applicable contractual commitments, the institute may develop the property through licensing, may release it to the creator or creators if permitted by law, or may take such other actions as are determined to be in the public interest. Exploitation by the institute may or may not involve statutory protection of the intellectual property rights, such as filing for patent protection or registering the copyright.

(h) If there is a question as to whether the institute has a valid ownership claim in intellectual property, the intellectual property should be disclosed in writing to the institute by the creator or creators in accordance with this Section. The disclosure is without prejudice to the creator's ownership claim. The institute shall provide the creator with a written statement as to the institute's ownership interest.

(i) The institute shall inform the principal creators of its substantive decisions regarding protection, commercialization, or disposition of intellectual property that has been disclosed. Specific terms of agreements with external parties, however, may be proprietary business information and subject to confidentiality restrictions.

(j) Should the institute decide to abandon development or protection of institute-owned intellectual property, ownership may be assigned to the creator or creators as allowed by law subject to the rights of sponsors and to the retention of a license to practice for institute purposes. The minimum terms of that license shall grant the institute the right to use the intellectual property in its programs of research and public service on a perpetual, royalty-free, non-exclusive basis. The institute may retain more than the minimum license rights, and the assignment or license may be subject to additional terms and conditions, such as revenue sharing with the institute or reimbursement of the costs of statutory protection, when justified by the circumstances of development.

(k) The institute may, at its discretion and consistent with the public interest, license intellectual property to the creator or creators on an exclusive or non-exclusive basis. The creators must demonstrate technical and business capability to commercialize the intellectual property. The creators may be required to assume the cost of statutory protection. Agreements with creators shall be subject to review and approval of conflict of interest issues.

(l) The institute may accept assignment of intellectual property from other parties, provided that the action is determined to be consistent with the public interest. Intellectual property so accepted shall be administered in a manner consistent with the administration of other institute-owned intellectual property.

(m) The creators of intellectual property owned by the institute under the terms of this Article may be required to state that to the best of their knowledge the intellectual property does not infringe on any existing patent, copyright, or other legal rights of third parties; that if the work is not the original expression or creation of the creators, the necessary permission for use has been obtained from the owner; and that the work contains no libelous material nor material that invades the privacy of others.

(n) The Oversight Committee has ultimate authority for the stewardship of intellectual property developed within the institute. Primary responsibility is delegated through the Executive Director for establishing operational guidelines and procedures for the administration of intellectual property, including but not limited to determination of ownership, assignment, protection, licensing, marketing, maintenance of records, oversight of revenue or equity collection and distribution, approval of individual exceptions, and resolution of disputes among creators.

(o) Licenses, options for licenses, and other agreements related to commercialization or exploitation of intellectual property shall be granted in the name of the Illinois Regenerative Medicine Institute.

(p) Research agreements shall provide that all intellectual property developed as a result of a sponsored research project shall belong to the institute unless otherwise specified in writing. Outside sponsors of a research project may receive an option to license the resulting intellectual property on terms to be negotiated, the option to be exercised within a specified period following the disclosure of the intellectual property. When the nature of the proposed research allows identification of a specific area of intellectual property or application that is of interest to the outside sponsor, the institute may accept research agreements with terms that entitle the sponsor to specific commercial rights within the defined field of interest. Otherwise, the specific terms of licenses and rights to commercial development shall be based on negotiation between the sponsor and the institute at the time of exercise of an option by the outside sponsor and shall depend on the nature of the intellectual property and its application, the relative contributions of the institute and the outside sponsor to the work, and the conditions deemed most likely to advance the commercial development and acceptance of the intellectual property. In all cases where exclusive licensing is deemed appropriate, the license agreements shall require diligent commercial development of the intellectual property by the licensee. The institute may also determine, on a case-by-case basis, that it is in the institute's interest to assign ownership of resulting intellectual property to an outside sponsor as an exception to this policy when circumstances warrant that action, in accordance with guidelines established by the Oversight Committee.

(q) Recommendations for exceptions to the provisions of the policy in this Section shall be made by the Executive Director to the Oversight Committee.

(r) For purposes of this Article, "proceeds" shall refer to all revenue and equity, as defined in this subsection, received by the institute from transfer, commercialization, or other exploitation of institute-owned intellectual property.

"Revenue" shall mean cash from payments, including but not limited to royalties, option fees, or license fees or from the sale of the institute's equity interest.

"Equity" shall include but not be limited to stock, securities, stock options, warrants, buildings, real or personal property, or other non-cash consideration.

When revenue is received by the institute, all out-of-pocket payments or obligations (and in some cases, a reasonable reserve for anticipated future expenses) attributable to protecting (including defense against infringement or enforcement actions), marketing, licensing, or administering the property may be deducted from the income. The income remaining after the deductions is defined as "net revenue".

The creator normally shall receive 50% of net revenue. If there are joint creators, the net income shall be divided equally among them absent a mutual agreement to the contrary.

The institute normally shall receive 50% of net revenue. Distribution of the institute's share shall be allocated in support of its future grant and loan making programs.

When the institute executes an agreement with a corporation or other business entity for purposes of exploiting intellectual property owned by the institute and the institute receives or is entitled to receive equity, the equity or the proceeds of the equity shall be shared among the creators and the institute in the same proportions as revenue distributions.

Special facts or circumstances may warrant a different distribution of proceeds than specified in this subsection, and the distributions shall be determined on a case-by-case basis under the authority of the Oversight Committee.

When the institute receives revenue from third parties that results from successful actions for the purpose of defending or enforcing the institute's rights in its intellectual property, the revenue may first be used to reimburse the institute (or the sponsor or licensee, if appropriate) for expenses incurred in the actions. The creators shall be entitled to recovery of lost royalties from the remaining net revenue, in the same proportions as specified in this subsection or in a prior written agreement. The remaining net revenue shall be allocated in support of the institute's grant and loan making programs.

Section 5-50. Appropriation and allocation of funding.

(a) Moneys in the Regenerative Medicine Bond Fund shall be used to make grants and loans for stem cell research pursuant to this Article.

Grants and loans for research shall be awarded based on scientific merit. When determining the scientific merit of a proposal the advisory panels and the Oversight Committee should consider criteria including:

(1) A demonstrated record of achievement in the areas of pluripotent stem cell and progenitor cell biology and medicine.

(2) The quality of the research proposal.

(3) The potential for achieving significant research or clinical results.

(4) The timetable for realizing the significant results.

(5) The importance of the research objectives.

(6) The innovativeness of the proposed research.

The grantee shall provide or demonstrate available matching funds of a minimum of 20% of the grant amount.

The institute shall limit indirect costs to 25% of a research award except that the indirect cost limitation may be increased by that amount by which the grantee provides matching funds in excess of 20% of the grant amount. "Indirect costs" mean the recipient's costs in the administration, accounting, general overhead, and general support costs for implementing a grant or loan of the institute. NIH definitions of "indirect costs" shall be used as one of the bases to create guidelines for recipients under this definition.

Grants and loans for buildings, building leases, and capital equipment shall be solely for facilities and equipment located within Illinois.

(b) The institute shall have the ability to receive and distribute funds in the Regenerative Medicine Institute Operations Fund and the Regenerative Medicine Bond Fund on December 1, 2006 in order to commence operations.

ARTICLE 10

Section 10-1. Short title. This Article may be cited as the Cosmetic Medical Procedure Utilization Tax Act. The tax imposed by this Article may be referred to as the "Cosmetic Medical Procedure Utilization Tax".

Section 10-5. Tax imposed; collection of tax. Beginning on January 1, 2007, a tax is imposed upon the privilege of utilizing cosmetic medical procedures in this State. The subject of the cosmetic medical procedure shall pay the tax, which shall be collected from the procedure subject by the person billing the gross receipts from the cosmetic medical procedure when collecting the payment for the cosmetic medical procedure in the manner prescribed by the Department of Revenue. If more than one person bills gross receipts from a single cosmetic medical procedure, each person shall be responsible for the collection of the gross receipts tax on the portion of the gross receipts billed.

Section 10-10. Rate of tax. The tax imposed by this Article is at the rate of 6% of the gross receipts from a cosmetic medical procedure.

Section 10-15. Definitions. For the purposes of this Article, the following terms shall have the following meanings:

"Cosmetic medical procedure" means any medical procedure performed on an individual that is directed at improving the procedure subject's appearance and that does not meaningfully promote the proper function of the body or prevent or treat illness or disease. "Cosmetic medical procedure" includes but is not limited to cosmetic surgery, hair transplants, cosmetic injections, cosmetic soft tissue fillers, dermabrasion and chemical peel, laser hair removal, laser skin resurfacing, laser treatment of leg veins, sclerotherapy, and cosmetic dentistry. "Cosmetic medical procedure" does not include reconstructive surgery or dentistry.

"Cosmetic surgery" means any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease.

"Department" means the Department of Revenue.

"Gross receipts from a cosmetic medical procedure" means all amounts paid for services, property, or occupancy required for or associated with the performance of a cosmetic medical procedure and billed to the procedure subject's account.

"Person" means any natural individual, firm, partnership, association, joint stock company, joint venture, public or private corporation, limited liability company, and any receiver, executor, trustee, guardian, or other representative appointed by order of any court.

"Reconstructive surgery or dentistry" includes any surgery or dentistry necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease.

Section 10-20. Reporting of tax. The Department shall collect and administer the tax imposed pursuant to this Article. The tax shall be reported and paid on a quarterly basis in a manner prescribed by the Department.

Section 10-25. Rules. The Department shall promulgate such rules and procedures as are required to implement this Article and may use its emergency rulemaking authority to adopt initial rules. The General Assembly finds that the adoption of rules to implement this Article is deemed an emergency and necessary for the public interest, safety, and welfare. The Illinois Administrative Procedure Act is hereby expressly adopted and shall apply to all administrative rules and procedures of the Department of Revenue under this Article, except that (1) paragraph (b) of Section 5-10 of the Illinois Administrative Procedure Act does not apply to final orders, decisions, and opinions of the Department, (2) item (ii) of subsection (a) of Section 5-10 of the Illinois Administrative Procedure Act does not apply to forms established by the Department for use under this Article, and (3) the provisions of Section 10-45 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded and not applicable to the Department under this Article.

Section 10-30. Tax as billing item. The tax imposed by this Article may be stated as a distinct item separate and apart on any billing for the procedure, and shall be so stated when requested by the procedure subject.

Section 10-35. Registration. Every person required to collect the tax imposed by this Article shall apply to the Department (upon a form prescribed and furnished by the Department) for a Certificate of Registration under this Article. In completing the application, the applicant shall furnish such information as the Department may reasonably require. Upon approval of an application for Certificate of Registration, the Department shall issue, without charge, a Certificate of Registration to the applicant. The Certificate of Registration shall be displayed at the address that the applicant states in his or her application to be the principal place of business or location from which he or she will perform cosmetic medical procedures in this State. If the applicant will perform cosmetic medical procedures in this State from other places of business or locations, he or she shall list the addresses of the additional places of business or locations in his or her application for Certificate of Registration, and the Department shall issue a Sub-Certificate of Registration to the applicant for each additional place of business or location. Each Sub-Certificate of Registration shall be conspicuously displayed at the place for which it is issued. Each Sub-Certificate of Registration shall bear the same registration number as that appearing upon the Certificate of Registration to which the Sub-Certificate relates. Where an applicant operates more than one place of business that is subject to registration under this Section and those businesses are substantially different in character or are engaged in under different trade names or are engaged in under other substantially dissimilar circumstances (so that it is more practical, from an accounting, auditing, or bookkeeping standpoint, for the businesses to be separately registered), the Department may require or permit the person to apply for and obtain a separate Certificate of Registration for each business or for any of the businesses instead of registering the person, as to all those businesses, under a single Certificate of Registration supplemented by related Sub-Certificates of Registration. No Certificate of Registration shall be issued to any person who is in default to the State of Illinois for moneys due under this Article.

Section 10-40. Returns. Every person required to collect the tax imposed by this Article shall file a return in accordance with reasonable rules promulgated by the Department in accordance with Section 10-25. The return shall be filed on a form prescribed by the Department and shall contain such information as the Department may reasonably require. The Department shall require returns to be filed on a quarterly basis. A return for each calendar quarter shall be filed on or before the twentieth day of the calendar month following the end of that calendar quarter.

Section 10-45. Tax proceeds. All moneys received by the Department pursuant to this Article shall be paid into the Cosmetic Medical Procedure Utilization Tax Fund of the State treasury, except that 5% of moneys received, up to a maximum per fiscal year of $1,000,000, shall be paid into the Regenerative Medicine Institute Operations Fund.

Section 10-50. Records. Every person required to collect the tax imposed by this Article shall keep such records, receipts, invoices, and other pertinent books, documents, memoranda, and papers as the Department shall require, in the form the Department shall require. In accordance with Section 10-25, the Department may adopt rules that establish requirements, including record forms and formats, for records required to be kept and maintained by taxpayers. For the purpose of administering and enforcing the provisions of this Article, the Department, or any officer or employee of the Department designated in writing by the Director of Revenue, may hold investigations and hearings concerning any matters covered in this Article and may examine any relevant books, papers, records, documents, or memoranda of any person required to collect the tax imposed by this Article or any taxable purchaser, and may require the attendance of that person or any officer or employee of that person, or of any person having knowledge of the facts, and may take testimony and require proof for its information.

Section 10-55. Tax additional to other taxes. The tax imposed by this Article shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision of the State of Illinois.

Section 10-60. Liability for tax. Any person required to collect the tax imposed by this Article shall be liable to the Department for the tax, whether or not the person has collected the tax. To the extent that a person required to collect the tax imposed by this Article has actually collected that tax, the tax is held in trust for the benefit of the Department. The Department may adopt rules necessary to effectuate a program of electronic funds transfer for the payment of the tax imposed by this Article.

Section 10-65. Uniform Penalty and Interest Act. The Uniform Penalty and Interest Act shall apply, as far as practical, to the subject matter of this Article to the same extent as if those provisions were included in this Article.

Section 10-90. Severability. It is the purpose of Section 10-5 of this Article to impose a tax upon the privilege of utilizing cosmetic medical procedures in this State, the tax to be based upon the gross receipts from cosmetic medical procedures, so far as the same may be done, under the Constitution and statutes of the United States, and the Constitution of the State of Illinois. The tax is not imposed upon the privilege of engaging in any business in interstate commerce or otherwise, however, which business may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State. If any clause, sentence, Section, provision, or part of this Article or its application to any person or circumstance shall be adjudged to be unconstitutional, the remainder of this Article or its application to persons or circumstances, other than those to which it is held invalid, shall not be affected thereby.

ARTICLE 90

Section 90-2. The Open Meetings Act is amended by changing Section 2 as follows:

(5 ILCS 120/2) (from Ch. 102, par. 42)

Sec. 2. Open meetings.

(a) Openness required. All meetings of public bodies shall be open to the public unless excepted in subsection (c) and closed in accordance with Section 2a.

(b) Construction of exceptions. The exceptions contained in subsection (c) are in derogation of the requirement that public bodies meet in the open, and therefore, the exceptions are to be strictly construed, extending only to subjects clearly within their scope. The exceptions authorize but do not require the holding of a closed meeting to discuss a subject included within an enumerated exception.

(c) Exceptions. A public body may hold closed meetings to consider the following subjects:

(1) The appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body or legal counsel for the public body, including hearing testimony on a complaint lodged against an employee of the public body or against legal counsel for the public body to determine its validity.

(2) Collective negotiating matters between the public body and its employees or their representatives, or deliberations concerning salary schedules for one or more classes of employees.

(3) The selection of a person to fill a public office, as defined in this Act, including a vacancy in a public office, when the public body is given power to appoint under law or ordinance, or the discipline, performance or removal of the occupant of a public office, when the public body is given power to remove the occupant under law or ordinance.

(4) Evidence or testimony presented in open hearing, or in closed hearing where specifically authorized by law, to a quasi-adjudicative body, as defined in this Act, provided that the body prepares and makes available for public inspection a written decision setting forth its determinative reasoning.

(5) The purchase or lease of real property for the use of the public body, including meetings held for the purpose of discussing whether a particular parcel should be acquired.

(6) The setting of a price for sale or lease of property owned by the public body.

(7) The sale or purchase of securities, investments, or investment contracts.

(8) Security procedures and the use of personnel and equipment to respond to an actual, a threatened, or a reasonably potential danger to the safety of employees, students, staff, the public, or public property.

(9) Student disciplinary cases.

(10) The placement of individual students in special education programs and other matters relating to individual students.

(11) Litigation, when an action against, affecting or on behalf of the particular public body has been filed and is pending before a court or administrative tribunal, or when the public body finds that an action is probable or imminent, in which case the basis for the finding shall be recorded and entered into the minutes of the closed meeting.

(12) The establishment of reserves or settlement of claims as provided in the Local Governmental and Governmental Employees Tort Immunity Act, if otherwise the disposition of a claim or potential claim might be prejudiced, or the review or discussion of claims, loss or risk management information, records, data, advice or communications from or with respect to any insurer of the public body or any intergovernmental risk management association or self insurance pool of which the public body is a member.

(13) Conciliation of complaints of discrimination in the sale or rental of housing, when closed meetings are authorized by the law or ordinance prescribing fair housing practices and creating a commission or administrative agency for their enforcement.

(14) Informant sources, the hiring or assignment of undercover personnel or equipment, or ongoing, prior or future criminal investigations, when discussed by a public body with criminal investigatory responsibilities.

(15) Professional ethics or performance when considered by an advisory body appointed to advise a licensing or regulatory agency on matters germane to the advisory body's field of competence.

(16) Self evaluation, practices and procedures or professional ethics, when meeting with a representative of a statewide association of which the public body is a member.

(17) The recruitment, credentialing, discipline or formal peer review of physicians or other health care professionals for a hospital, or other institution providing medical care, that is operated by the public body.

(18) Deliberations for decisions of the Prisoner Review Board.

(19) Review or discussion of applications received under the Experimental Organ Transplantation Procedures Act.

(20) The classification and discussion of matters classified as confidential or continued confidential by the State Employees Suggestion Award Board.

(21) Discussion of minutes of meetings lawfully closed under this Act, whether for purposes of approval by the body of the minutes or semi-annual review of the minutes as mandated by Section 2.06.

(22) Deliberations for decisions of the State Emergency Medical Services Disciplinary Review Board.

(23) The operation by a municipality of a municipal utility or the operation of a municipal power agency or municipal natural gas agency when the discussion involves (i) contracts relating to the purchase, sale, or delivery of electricity or natural gas or (ii) the results or conclusions of load forecast studies.

(24) Meetings of a residential health care facility resident sexual assault and death review team or the Residential Health Care Facility Resident Sexual Assault and Death Review Teams Executive Council under the Residential Health Care Facility Resident Sexual Assault and Death Review Team Act.

(25) Discussions of the Illinois Regenerative Medicine Institute Oversight Committee or its advisory panels that involve (i) personally identifiable information relating to patients or medical subjects or (ii) matters concerning confidential intellectual property and confidential scientific research or data.

(d) Definitions. For purposes of this Section:

"Employee" means a person employed by a public body whose relationship with the public body constitutes an employer-employee relationship under the usual common law rules, and who is not an independent contractor.

"Public office" means a position created by or under the Constitution or laws of this State, the occupant of which is charged with the exercise of some portion of the sovereign power of this State. The term "public office" shall include members of the public body, but it shall not include organizational positions filled by members thereof, whether established by law or by a public body itself, that exist to assist the body in the conduct of its business.

"Quasi-adjudicative body" means an administrative body charged by law or ordinance with the responsibility to conduct hearings, receive evidence or testimony and make determinations based thereon, but does not include local electoral boards when such bodies are considering petition challenges.

(e) Final action. No final action may be taken at a closed meeting. Final action shall be preceded by a public recital of the nature of the matter being considered and other information that will inform the public of the business being conducted.

(Source: P.A. 93-57, eff. 7-1-03; 93-79, eff. 7-2-03; 93-422, eff. 8-5-03; 93-577, eff. 8-21-03; revised 9-8-03.)

Section 90-5. The Election Code is amended by adding Article 28A as follows:

(10 ILCS 5/Art. 28A heading new)

ARTICLE 28A DEBT REFERENDA

(10 ILCS 5/28A-5 new)

Sec. 28A-5. Legislative intent. Section 9(b) of Article IX of the Illinois Constitution provides that State debt may be incurred "as may be provided either in a law passed by the vote of three-fifths of the members elected to each house of the General Assembly or in a law approved by a majority of the electors voting on the question at the next general election following passage." This amendatory Act of the 94th General Assembly provides the statutory framework for the incurring of State debt through the approval of a law in a referendum.

(10 ILCS 5/28A-10 new)

Sec. 28A-10. General election law. To the extent not inconsistent with this Act, the general election law shall govern referendums held pursuant to Section 9(b) of Article IX of the Illinois Constitution.

(10 ILCS 5/28A-15 new)

Sec. 28A-15. Question. The law passed by the General Assembly shall provide for the form of the question to be submitted to the electors as it will appear on the ballot.

(10 ILCS 5/28A-20 new)

Sec. 28A-20. Limit on number of questions inapplicable. The limitation on the number of public questions contained in Section 28-1 of this Code shall not apply to questions submitted pursuant to Section 9(b) of Article IX of the Constitution.

(10 ILCS 5/28A-25 new)

Sec. 28A-25. Certification. Not less than 67 days before the general election, the State Board of Elections shall certify all questions submitted pursuant to Section 9(b) of Article IX of the Illinois Constitution to the respective county clerks. Not less than 61 days before the general election, the county clerk shall certify such question or questions to the board of election commissioners, if any, in his or her county. The certification shall include the form of the question or questions to be placed on the ballot.

(10 ILCS 5/28A-30 new)

Sec. 28A-30. Notice. It is the duty of the election authority to have the questions published and posted at the same time, in the same manner, and at the same places that sample ballots and instructions to voters are required by law to be posted.

(10 ILCS 5/28A-35 new)

Sec. 28A-35. Votes; canvassing; returns. The votes cast for and against the question or questions shall be by the judges of such election received, canvassed, and returned to the county clerks of their respective counties, at the same time and in the same manner as the votes cast at the election for members of the General Assembly are by law required to be received, canvassed, and returned to the clerks. The clerks shall prepare and transmit to the State Board of Elections an abstract of the votes at the same time and in the same manner as the votes cast at the election for members of the General Assembly are by law required to be abstracted and transmitted.

(10 ILCS 5/28A-40 new)

Sec. 28A-40. Proclamation. The State Board of Elections shall canvass the votes given for and against the question or questions in the same manner as it canvasses the votes cast upon amendments to the Illinois Constitution, and if it appears that a majority of the electors voting on any question have voted for the question, the State Board shall declare that question approved and the Governor shall cause a proclamation to be made of the result of the vote, which proclamation shall be filed with the Secretary of State.

Section 90-10. The State Finance Act is amended by adding Sections 5.640, 6z-100, and 6z-105 as follows:

(30 ILCS 105/5.640 new)

Sec. 5.640. The Regenerative Medicine Bond Fund.

(30 ILCS 105/6z-100 new)

Sec. 6z-100. The Cosmetic Medical Procedure Utilization Tax Fund.

(a) The Cosmetic Medical Procedure Utilization Tax Fund is created as a special fund in the State Treasury.

(b) Subject to the transfer provisions set forth in this Section, money in the Cosmetic Medical Procedure Utilization Tax Fund shall, if and when bonds are issued pursuant to Section 6.5 of the General Obligation Bond Act, be transferred to the General Obligation Bond Retirement and Interest Fund.

In addition to other transfers to the General Obligation Bond Retirement and Interest Fund made pursuant to Section 15 of the General Obligation Bond Act, upon each issuance of bonds under Section 6.5 of the General Obligation Bond Act, the State Comptroller shall compute and certify to the State Treasurer the total amount of principal of, interest on, and premium, if any, on such bonds during the then current and each succeeding fiscal year. With respect to the interest payable on variable rate bonds, such certifications shall be calculated at the maximum rate of interest that may be payable during the fiscal year, after taking into account any credits permitted in the related indenture or other instrument against the amount of such interest required to be appropriated for that period.

On or before the last day of each month, the State Treasurer and State Comptroller shall transfer from the Cosmetic Medical Procedure Utilization Tax Fund to the General Obligation Bond Retirement and Interest Fund an amount sufficient to pay the aggregate of the principal of, interest on, and premium, if any, on the bonds payable on their next payment date, divided by the number of monthly transfers occurring between the last previous payment date (or the delivery date if no payment date has yet occurred) and the next succeeding payment date, plus any deficiency accumulated from a preceding month. Interest payable on variable rate bonds shall be calculated at the maximum rate of interest that may be payable for the relevant period, after taking into account any credits permitted in the related indenture or other instrument against the amount of such interest required to be appropriated for that period.

(c) Any surplus, as determined by the Comptroller, in the Cosmetic Medical Procedure Utilization Tax Fund after the payment of principal and interest on bonded indebtedness then annually due and after paying any refunds due to taxpayers under the Cosmetic Medical Procedure Utilization Tax Act shall, subject to appropriation, be used to pay the expenses of the Illinois Regenerative Medicine Institute in administering programs under the Illinois Regenerative Medicine Institute Creation Act or pay for any grants and loans under the Illinois Regenerative Medicine Institute Creation Act. Funds remaining after the payment of principal and interest on bonds issued under Section 6.5 of the General Obligation Bond Act then annually due and after paying any refunds due to taxpayers under the Cosmetic Medical Procedure Utilization Tax Act shall not be considered surplus if such funds are reasonably required for future payments of principal and interest on bonds issued under Section 6.5 of the General Obligation Bond Act. The State Treasurer and State Comptroller shall transfer the surplus to the Regenerative Medicine Institute Operations Fund.

(d) Investment income that is attributable to the investment of moneys of the Cosmetic Medical Procedure Utilization Tax Fund shall be retained in that fund. Moneys in this Fund shall not be transferred to the General Revenue Fund for any purposes other than those outlined in this Section.

(30 ILCS 105/6z-105 new)

Sec. 6z-105. Regenerative Medicine Institute Operations Fund.

(a) The Regenerative Medicine Institute Operations Fund is created as a special fund in the State Treasury.

(b) The following items of income for the Illinois Institute for Regenerative Medicine shall be deposited into the Fund: funds received pursuant to the Cosmetic Medical Procedure Utilization Tax Act; the fees charged by the institute; payments received as repayment of loans made by the institute; funds received in connection with the retention, receipt, assignment, license, sale or transfer of interests in, rights to, or income from discoveries, inventions, patents, or copyrightable works; donations, monetary gifts, or other financial assistance from private sources of individuals; and any other funds appropriated or transferred into the Fund.

(c) Pursuant to appropriation the institute may use those funds for activities and purposes provided in the Illinois Regenerative Medicine Institute Creation Act, including activities and operations of the institute. Further, the Oversight Committee of the Illinois Institute for Regenerative Medicine may request that the Comptroller and the Treasurer transfer funds from the Regenerative Medicine Institute Operations Fund to the Cosmetic Medical Procedure Utilization Tax Fund in order to pay debt service on bonds issued pursuant to the Illinois Regenerative Medicine Institute Act.

(d) Investment income that is attributable to the investment of moneys of the Regenerative Medicine Institute Operations Fund shall be retained in the Fund.

Section 90-15. The General Obligation Bond Act is amended by changing Sections 2, 12, and 19 and by adding Section 6.5 as follows:

(30 ILCS 330/2) (from Ch. 127, par. 652)

Sec. 2. Authorization for Bonds. The State of Illinois is authorized to issue, sell and provide for the retirement of General Obligation Bonds of the State of Illinois for the categories and specific purposes expressed in Sections 2 through 8 of this Act, in the total amount of $28,658,149,369 $27,658,149,369.

The bonds authorized in this Section 2 and in Section 16 of this Act are herein called "Bonds".

Of the total amount of Bonds authorized in this Act, up to $2,200,000,000 in aggregate original principal amount may be issued and sold in accordance with the Baccalaureate Savings Act in the form of General Obligation College Savings Bonds.

Of the total amount of Bonds authorized in this Act, up to $300,000,000 in aggregate original principal amount may be issued and sold in accordance with the Retirement Savings Act in the form of General Obligation Retirement Savings Bonds.

Of the total amount of Bonds authorized in this Act, the additional $10,000,000,000 authorized by this amendatory Act of the 93rd General Assembly shall be used solely as provided in Section 7.2.

The issuance and sale of Bonds pursuant to the General Obligation Bond Act is an economical and efficient method of financing the long-term capital needs of the State. This Act will permit the issuance of a multi-purpose General Obligation Bond with uniform terms and features. This will not only lower the cost of registration but also reduce the overall cost of issuing debt by improving the marketability of Illinois General Obligation Bonds.

(Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02; 92-598, eff. 6-28-02; 93-2, eff. 4-7-03; 93-839, eff. 7-30-04.)

(30 ILCS 330/6.5 new)

Sec. 6.5. Illinois Regenerative Medicine Research Funding. The amount of $1,000,000,000 for grants and loans to facilities is authorized pursuant to the Illinois Regenerative Medicine Institute Creation Act and for the making of deposits into the Regenerative Medicine Institute Operations Fund for the making of loans. The bonds shall be issued in an aggregate original principal amount (excluding the amount of any bonds issued to refund or advance refund bonds issued under the Illinois Regenerative Medicine Institute Act) not to exceed $100,000,000 per fiscal year, except that this $100,000,000 per fiscal year limit may be increased by the difference between the cumulative total of the $100,000,000 limits for all prior fiscal years and the cumulative aggregate original principal amount (excluding the amount of any bonds issued to refund or advance refund bonds issued under the Illinois Regenerative Medicine Institute Act) of bonds issued during all prior fiscal years.

(30 ILCS 330/12) (from Ch. 127, par. 662)

Sec. 12. Allocation of Proceeds from Sale of Bonds.

(a) Proceeds from the sale of Bonds, authorized by Section 3 of this Act, shall be deposited in the separate fund known as the Capital Development Fund.

(b) Proceeds from the sale of Bonds, authorized by paragraph (a) of Section 4 of this Act, shall be deposited in the separate fund known as the Transportation Bond, Series A Fund.

(c) Proceeds from the sale of Bonds, authorized by paragraphs (b) and (c) of Section 4 of this Act, shall be deposited in the separate fund known as the Transportation Bond, Series B Fund.

(d) Proceeds from the sale of Bonds, authorized by Section 5 of this Act, shall be deposited in the separate fund known as the School Construction Fund.

(e) Proceeds from the sale of Bonds, authorized by Section 6 of this Act, shall be deposited in the separate fund known as the Anti-Pollution Fund.

(e-5) Proceeds from the sale of bonds, authorized by Section 6.5 of this Act, shall be deposited into the separate fund known as the Regenerative Medicine Bond Fund.

(f) Proceeds from the sale of Bonds, authorized by Section 7 of this Act, shall be deposited in the separate fund known as the Coal Development Fund.

(f-2) Proceeds from the sale of Bonds, authorized by Section 7.2 of this Act, shall be deposited as set forth in Section 7.2.

(f-5) Proceeds from the sale of Bonds, authorized by Section 7.5 of this Act, shall be deposited as set forth in Section 7.5.

(g) Proceeds from the sale of Bonds, authorized by Section 8 of this Act, shall be deposited in the Capital Development Fund.

(h) Subsequent to the issuance of any Bonds for the purposes described in Sections 2 through 8 of this Act, the Governor and the Director of the Governor's Office of Management and Budget Bureau of the Budget may provide for the reallocation of unspent proceeds of such Bonds to any other purposes authorized under said Sections of this Act, subject to the limitations on aggregate principal amounts contained therein. Upon any such reallocation, such unspent proceeds shall be transferred to the appropriate funds as determined by reference to paragraphs (a) through (g) of this Section.

(Source: P.A. 92-596, eff. 6-28-02; 93-2, eff. 4-7-03; revised 8-23-03.)

(30 ILCS 330/19) (from Ch. 127, par. 669)

Sec. 19. Investment of Money Not Needed for Current Expenditures - Application of Earnings.

(a) The State Treasurer may, with the Governor's approval, invest and reinvest any money from the Capital Development Fund, the Transportation Bond, Series A Fund, the Transportation Bond, Series B Fund, the School Construction Fund, the Anti-Pollution Fund, the Coal Development Fund, the Regenerative Medicine Bond Fund, and the General Obligation Bond Retirement and Interest Fund, in the State Treasury, which is not needed for current expenditures due or about to become due from these funds.

(b) Monies received from the sale or redemption of investments from the Transportation Bond, Series A Fund shall be deposited by the State Treasurer in the Road Fund.

Monies received from the sale or redemption of investments from the Capital Development Fund, the Transportation Bond, Series B Fund, the School Construction Fund, the Anti-Pollution Fund, and the Coal Development Fund shall be deposited by the State Treasurer in the General Revenue Fund.

Moneys received from the sale or redemption of investments from the Regenerative Medicine Bond Fund shall be deposited by the State Treasurer into the Cosmetic Medical Procedure Utilization Tax Fund.

Monies from the sale or redemption of investments from the General Obligation Bond Retirement and Interest Fund shall be deposited in the General Obligation Bond Retirement and Interest Fund.

(c) Monies from the Capital Development Fund, the Transportation Bond, Series A Fund, the Transportation Bond, Series B Fund, the School Construction Fund, the Anti-Pollution Fund, and the Coal Development Fund, and the Regenerative Medicine Bond Fund may be invested as permitted in "AN ACT in relation to State moneys", approved June 28, 1919, as amended and in "AN ACT relating to certain investments of public funds by public agencies", approved July 23, 1943, as amended. Monies from the General Obligation Bond Retirement and Interest Fund may be invested in securities constituting direct obligations of the United States Government, or obligations, the principal of and interest on which are guaranteed by the United States Government, or certificates of deposit of any state or national bank or savings and loan association. For amounts not insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, as security the State Treasurer shall accept securities constituting direct obligations of the United States Government, or obligations, the principal of and interest on which are guaranteed by the United States Government.

(d) Accrued interest paid to the State at the time of the delivery of the Bonds shall be deposited into the General Obligation Bond Retirement and Interest Fund in the State Treasury.

(Source: P.A. 84-1248; 84-1474.)

ARTICLE 99

Section 99-5. Effective date. Articles 1, 15, and 99 of this Act and the amendatory changes to the Election Code contained in Section 90-5 of Article 90 of this Act take effect January 1, 2006. The remainder of this Act takes effect upon certification by the State Board of Elections by January 1, 2007 that the question described in Section 1-15 of Article 1 of the Illinois Regenerative Medicine Institute Act has been approved by a majority of electors voting on that question at the 2006 general election.