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| | SB3553 Engrossed | | LRB098 18623 NHT 53764 b |
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1 | | AN ACT concerning education.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The State University Certificates of |
5 | | Participation Act is amended by changing Sections 10, 15, 30, |
6 | | and 90 as follows: |
7 | | (110 ILCS 73/10)
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8 | | Sec. 10. Certificates of participation. |
9 | | (a) The power of the Board of any State University to enter |
10 | | into contracts includes the power to enter into financing |
11 | | agreements in connection with the financing or refinancing of |
12 | | capital improvements (including technology or other related |
13 | | improvements) by selling certificates of participation in the |
14 | | installment payments made under such financing agreements. |
15 | | Such financing agreements may be entered into for any period of |
16 | | time less than or equal to 30 years, but not to exceed the |
17 | | useful life of the capital improvement. Nothing in this Act |
18 | | authorizes the Board of any State University to incur "State |
19 | | debt" as that term is defined in subsection (a) of Section 9 of |
20 | | Article IX of the Illinois Constitution of 1970. This |
21 | | subsection (a) is declaratory of existing law. |
22 | | (b) Upon determination by the Board of a State University |
23 | | to undertake a transaction for the sale of certificates of |
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1 | | participation and enter into related financing agreements in |
2 | | connection with the financing or refinancing of capital |
3 | | improvements, the Board shall adopt a resolution or resolutions |
4 | | describing in a general way the contemplated facilities or a |
5 | | combination thereof designated as the project, the estimated |
6 | | cost thereof, and any additional relevant information.
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7 | | (Source: P.A. 96-15, eff. 6-22-09.) |
8 | | (110 ILCS 73/15)
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9 | | Sec. 15. Accountability and review of proposed certificate |
10 | | issuance. Before issuance of any certificate of participation, |
11 | | a State University shall appear before the Commission and |
12 | | present the details of the proposal. This presentation shall |
13 | | include such information as the Commission may request in |
14 | | relation to the proposed certificate of participation |
15 | | issuance. This information shall include, but is not limited |
16 | | to, the amount being financed or refinanced , the nature of the |
17 | | project being financed or refinanced , the proposed funding |
18 | | stream to pay for the certificate issuance, the current |
19 | | outstanding indebtedness of the State University, and the |
20 | | status of all currently outstanding issued certificates of |
21 | | participation.
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22 | | Upon receipt of a request by a State University for a |
23 | | certificate of participation presentation, the Commission |
24 | | shall hold a public hearing and, upon adoption by a vote of the |
25 | | majority of appointed members, issue a record of findings in |
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1 | | regards to the issuance of the certificate within 60 days after |
2 | | the request. |
3 | | As part of the Commission's considerations and findings, |
4 | | the Commission shall consider the effect the issuance of a |
5 | | certificate of participation shall have on the State |
6 | | University's annual debt service and overall fiscal condition. |
7 | | Within the Commission's findings shall be a statement in |
8 | | which the Commission makes a recommendation to the State |
9 | | University as to proceeding with the certificate issuance. The |
10 | | recommendation shall be either (i) "favorably recommended", |
11 | | (ii) "recommended with concerns", or (iii) "non-support of |
12 | | issuance".
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13 | | The Commission shall report the findings within 15 days |
14 | | after the hearing to all of the following: |
15 | | (1) The Speaker of the House of Representatives. |
16 | | (2) The Minority Leader of the House of |
17 | | Representatives. |
18 | | (3) The President of the Senate. |
19 | | (4) The Minority Leader of the Senate. |
20 | | (5) The Governor's Office of Management and Budget. |
21 | | (6) The President of the State University that had |
22 | | requested the certificate presentation. |
23 | | Upon a finding of "non-support of issuance", a State |
24 | | University may not proceed with the issuance of the certificate |
25 | | involved in the finding without the approval of the General |
26 | | Assembly through the adoption of a joint resolution.
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1 | | (Source: P.A. 96-15, eff. 6-22-09.) |
2 | | (110 ILCS 73/30)
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3 | | Sec. 30. Debt limit. The maximum annual debt service for a |
4 | | State University's total outstanding certificate of |
5 | | participation obligation must not exceed the following: |
6 | | (1) For the University of Illinois, $100,000,000. |
7 | | (2) For Southern Illinois University, $20,000,000. |
8 | | (3) For Northern Illinois University, $20,000,000. |
9 | | (4) For Illinois State University, $10,000,000. |
10 | | (5) For Western Illinois University, $10,000,000. |
11 | | (6) For Eastern Illinois University, $10,000,000. |
12 | | (7) For Northeastern Illinois University, $5,000,000. |
13 | | (8) For Chicago State University, $5,000,000. |
14 | | (9) For Governors State University, $5,000,000.
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15 | | (Source: P.A. 96-15, eff. 6-22-09.) |
16 | | (110 ILCS 73/90)
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17 | | Sec. 90. Expiration of Act. This Act applies until December |
18 | | 31, 2024 2014 . However, the refunding of certificates of |
19 | | participation issued prior to December 31, 2024 2014 in |
20 | | accordance with the Act is permitted.
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21 | | (Source: P.A. 96-15, eff. 6-22-09.)
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22 | | Section 99. Effective date. This Act takes effect upon |
23 | | becoming law.
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