Sen. Scott M. Bennett

Filed: 5/15/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2357

2    AMENDMENT NO. ______. Amend Senate Bill 2357 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State University Certificates of
5Participation Act is amended by changing Sections 30 and 90 and
6by adding Section 35 as follows:
 
7    (110 ILCS 73/30)
8    Sec. 30. Debt limit. The maximum annual debt service for a
9State University's total outstanding certificate of
10participation obligation must not exceed the following:
11        (1) For the University of Illinois, $100,000,000.
12        (2) For Southern Illinois University, $40,000,000
13    $20,000,000.
14        (3) For Northern Illinois University, $40,000,000
15    $20,000,000.
16        (4) For Illinois State University, $20,000,000

 

 

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1    $10,000,000.
2        (5) For Western Illinois University, $20,000,000
3    $10,000,000.
4        (6) For Eastern Illinois University, $20,000,000
5    $10,000,000.
6        (7) For Northeastern Illinois University, $10,000,000
7    $5,000,000.
8        (8) For Chicago State University, $10,000,000
9    $5,000,000.
10        (9) For Governors State University, $10,000,000
11    $5,000,000.
12(Source: P.A. 96-15, eff. 6-22-09.)
 
13    (110 ILCS 73/35 new)
14    Sec. 35. Certificates of participation for capital
15improvements.
16    (a) The power of the Board of any State University to enter
17into contracts shall include the power to enter into financing
18agreements in connection with the financing of capital
19improvements, including technology or other related
20improvements, by selling certificates of participation in the
21installment payments made under the financing agreements.
22These financing agreements may be entered into for any period
23of time not to exceed 30 years, but may not to exceed the
24useful life of the capital improvement.
25    (b) Upon determination by the Board to undertake a

 

 

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1transaction for the sale of certificates of participation and
2to enter into related financing agreements in connection with
3the financing of capital improvements, the Board shall adopt a
4resolution or resolutions describing generally the
5contemplated facilities or a combination of facilities
6designated as the project, the estimated costs of the project,
7and any additional relevant information.
8    (c) Before the issuance of any certificate of
9participation, the Board or its representative shall appear
10before the Commission and present the details of the proposal.
11This presentation shall include any information the Commission
12requests in relation to the proposed certificate of
13participation issuance. This information shall include, but is
14not limited to, the amount being financed, the nature of the
15project being financed, the proposed funding stream to pay for
16the certificate issuance, the current outstanding indebtedness
17of the State University, and the status of all currently issued
18certificates of participation.
19    Upon receipt of a request by the Board for a certificate of
20participation presentation, the Commission shall hold a public
21hearing and, upon adoption by a vote of the majority of
22appointed members, issue a record of its findings no later than
2360 days after the request.
24    As part of the Commission's considerations and findings,
25the Commission shall consider the effect the issuance of a
26certificate of participation shall have on the State

 

 

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1University's annual debt service and overall fiscal condition.
2The Commission's findings must include a statement in which the
3Commission makes a recommendation to the Board as to how to
4proceed with the certificate of participation issuance. The
5recommendation shall be (i) "favorably recommended", (ii)
6"recommended with concerns", or (iii) "non-support of
7issuance". The Commission shall report the findings no later
8than 15 days after the hearing to all of the following:
9        (1) The Speaker of the House of Representatives.
10        (2) The Minority Leader of the House of
11    Representatives.
12        (3) The President of the Senate.
13        (4) The Minority Leader of the Senate.
14        (5) The Governor's Office of Management and Budget.
15        (6) The President of the State University.
16    The reports to the General Assembly shall be filed with the
17Clerk of the House of Representatives and the Secretary of the
18Senate in electronic form only, in the manner that the Clerk
19and the Secretary shall direct.
20    Upon a finding of "non-support of issuance", the Board may
21not proceed with the issuance of the certificate of
22participation involved in the finding without the approval of
23the General Assembly through the adoption of a joint
24resolution.
25    (d) Each year, upon receipt of its external Auditor General
26audit report, the Board shall file with the Commission a report

 

 

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1containing the status of all outstanding certificates of
2participation the Board has issued and a copy of the annual
3budget as approved by the Board.
4    (e) Each issuance of a certificate of participation shall
5include within the appropriate documents related to its
6execution the following statement, which sets forth required
7limitations in relation to the certificate:
8        "The Board of Trustees' obligation to make payments
9    does not constitute a debt of the Board or the State of
10    Illinois within the meaning of any constitutional or
11    statutory limitation. The installment payments required by
12    certificates of participation incurred by the Board of
13    Trustees are not secured by the full faith and credit of
14    the State, are not required to be repaid, and may not be
15    repaid, directly or indirectly, from tax revenue."
16    (f) The maximum annual debt service for the Board's total
17certificate of participation obligation must not exceed
18$100,000,000.
19    (g) Nothing in this Section authorizes the Board to incur
20State debt, as defined under subsection (a) of Section 9 of
21Article IX of the Illinois Constitution.
 
22    (110 ILCS 73/90)
23    Sec. 90. Expiration of Act. This Act applies until December
2431, 2028 2014. However, the refunding of certificates of
25participation issued prior to December 31, 2028 2014 in

 

 

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1accordance with the Act is permitted.
2(Source: P.A. 96-15, eff. 6-22-09.)
 
3    (110 ILCS 73/10 rep.)
4    (110 ILCS 73/15 rep.)
5    (110 ILCS 73/20 rep.)
6    (110 ILCS 73/25 rep.)
7    Section 10. The State University Certificates of
8Participation Act is amended by repealing Sections 10, 15, 20,
9and 25.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".