Illinois General Assembly - Full Text of HB0196
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Full Text of HB0196  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Scott Drury


New Act
30 ILCS 105/5.866 new

    Creates the Capital Improvement Planning Act. Provides that the Governor's Office of Management and Budget shall create a 5-year capital improvement plan, based on defined criteria to evaluate the State's capital improvement needs. Provides for the plan to have defined criteria for prioritizing projects. Amends the State Finance Act. Creates the Project Reserve Fund. Effective immediately.

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1    AN ACT concerning capital improvement planning.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Capital Improvement Planning Act.
6    Section 5. Legislative intent; purpose.
7    (a) The General Assembly recognizes the need to establish a
8comprehensive process for capital improvement planning and
9budgeting that is fully integrated with State financial
10planning and debt management.
11    (b) The capital improvement planning and budgeting process
12shall include the following elements:
13        (1) An inventory of facilities owned by the State of
14    Illinois.
15        (2) Criteria used to evaluate capital improvement
16    needs.
17        (3) A 5-year capital improvement needs estimate.
18        (4) A 5-year capital improvements plan.
19        (5) Recommendations for capital improvements set forth
20    in Section 50-10 of the State Budget Law of the Civil
21    Administrative Code of Illinois.
22    (c) The Governor's Office Management and Budget has
23responsibility for management of the capital improvement



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1planning process. The Director of the Governor's Office
2Management and Budget may assign to any State agency such
3duties and responsibilities as may, in the Director's judgment,
4be necessary to the successful administration of the capital
5improvement planning process.
6    Section 10. Definitions. As used in this Act:
7    "Department" means the Department of Central Management
9    "Director" means the Director of the Governor's Office
10Management and Budget.
11    "Office" means the Governor's Office Management and
13    "State agency" has the meaning provided in Section 1.05 of
14the State Property Control Act.
15    "State university" means Chicago State University, Eastern
16Illinois University, Governors State University, Illinois
17State University, Northeastern Illinois University, Northern
18Illinois University, Southern Illinois University, the
19University of Illinois, or Western Illinois University.
20    Section 15. Capital facilities inventory. The Department
21shall develop and maintain an automated inventory of all
22facilities owned by the State of Illinois. The inventory shall
23include the location, occupying agency, ownership, size,
24description, condition assessment, maintenance record, parking



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1and employee facilities, and other information to determine
2maintenance needs and prepare life cycle cost evaluations of
3each facility listed in the inventory. The Department shall
4update and publish the inventory at least once every 3 years.
5The Department shall also record in the inventory acquisitions
6of new facilities and significant changes in existing
7facilities as they occur.
8    Section 20. Capital improvement needs criteria. The Office
9shall develop a weighted list of factors that may be used to
10evaluate the need for capital improvement projects. The list
11must include, but is not limited to, the following:
12    (1) Preservation, adequacy, and use of existing
14    (2) Health and safety considerations.
15    (3) Operational efficiencies.
16    (4) Projected demand for governmental services.
17    Section 25. Agency capital improvement needs estimates.
18    (a) On or before September 1 of each year, each State
19agency shall submit to the Office and to the Commission on
20Government Forecasting and Accountability a 5-year capital
21improvement needs estimate. This estimate shall describe the
22agency's anticipated capital needs for each year of the 5-year
23planning period. Capital improvement needs estimates shall be
24shown in 2 parts, as provided in subsections (b) and (c) of



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1this Section.
2    (b) The first part of the capital improvement needs
3estimates shall include only requirements for repairs and
4renovations necessary to maintain the existing use of existing
5facilities. Each proposed repair and renovation expenditure
6shall be justified by a cost benefit analysis and such other
7criteria as the Capital Development Board may by rule require.
8    (c) The second part of the capital improvement needs
9estimates shall include only proposals for real property
10acquisition and projects involving construction of new
11facilities or rehabilitation of existing facilities to
12accommodate uses for which the existing facilities were not
13originally designed. Each project included in this part shall
14be justified by a cost benefit analysis and such other criteria
15as the Director may require.
16    For capital projects of a State university, the Office
17shall utilize the needs evaluation information approved by the
18board of trustees of that State university.
19    Section 30. Five-year capital improvements plan.
20    (a) The State capital improvement plan shall address the
21long term capital improvement needs of all State agencies and
22shall incorporate all capital projects, however financed,
23proposed to meet those needs, except that transportation
24infrastructure projects shall be excluded. On or before
25December 31 of each year, the Director shall prepare and



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1transmit to the General Assembly a 5-year capital improvement
2plan. When preparing the plan, the Director shall consider the
3capital improvement needs estimates submitted by State
4agencies. The plan shall be prepared in 2 parts, as provided in
5subsections (b) and (c) of this Section.
6    (b) The first part of the capital improvement plan shall
7set forth repair and renovations requirements that, in the
8judgment of the Director, should be met within each year of the
95-year planning period to protect and preserve existing capital
10improvement facilities. The plan shall identify individual
11projects in priority order by State agency and shall specify
12the means of financing for each project.
13    (c) The second part of the capital improvement plan shall
14set forth an integrated schedule for real property acquisition,
15new construction, or rehabilitation of existing facilities
16that, in the judgment of the Director, should be initiated
17within each year of the 5-year planning period. The plan shall
18contain for each project:
19        (1) estimates of real property acquisition, and
20    construction or rehabilitation costs;
21        (2) a means of financing the project; and
22        (3) an estimated schedule for the completion of the
23    project.
24    Where the means of financing would involve direct or
25indirect debt service obligations, a schedule of those
26obligations shall be presented.



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1    Section 35. Recommendations for capital improvements.
2    (a) The Director shall recommend expenditures for repairs
3and renovations of existing facilities, and real property
4acquisition, new construction, or rehabilitation of existing
5facilities in the State Budget proposed by the Governor.
6    (b) The State Budget proposed by the Governor shall contain
7for repairs and renovations of existing facilities:
8        (1) the amount recommended for each State agency;
9        (2) a summary of the recommendations by project type;
10    and
11        (3) the means of financing.
12    (c) The Budget Support Document shall contain for each
13repair and renovation project recommended in accordance with
14subsection (b) of this Section:
15        (1) a project description and justification;
16        (2) a detailed cost estimate;
17        (3) an estimated schedule for the completion of the
18    project; and
19        (4) an explanation of the means of financing.
20    (d) The State Budget proposed by the Governor shall contain
21for each capital project involving real property acquisition,
22new construction, building area (expressed in square footage)
23expansions, or the rehabilitation of existing facilities to
24accommodate new or expanded uses:
25        (1) a project description and statement of need;



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1        (2) an estimate of acquisition and construction or
2    rehabilitation costs; and
3        (3) a means of financing the project.
4    (e) The Budget Support Document shall contain for each
5capital project recommended in accordance with subsection (d)
6of this Section:
7        (1) a detailed project description and justification;
8        (2) a detailed estimate of acquisition, planning,
9    design, site development, construction, contingency and
10    other related costs;
11        (3) an estimated schedule of cash flow requirements
12    over the life of the project;
13        (4) an estimated schedule for the completion of the
14    project;
15        (5) an estimate of maintenance and operating costs,
16    including personnel, for the project, covering the first 5
17    years of operation;
18        (6) an estimate of revenues, if any, likely to be
19    derived from the project, covering the first 5 years of
20    operation; and
21        (7) an explanation of the means of financing.
22    Section 40. When a State agency may begin a capital
23improvement project. No State agency may expend funds for the
24construction or renovation of any capital improvement project
25except as needed to comply with this Act or as otherwise



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1authorized by the General Assembly. Funds that become available
2by gifts, federal or private grants, receipts becoming a part
3of special funds by Act of the General Assembly, or any other
4funds available to a State agency or institution may be
5utilized for advanced planning through the working drawing
6phase of capital improvement projects, upon approval of the
8    Section 45. When a State agency may increase the cost of a
9capital improvement project. Upon the request of the
10administration of a State agency, the Director may, when in the
11Director's opinion it is in the best interest of the State to
12do so, increase the cost of a capital improvement project.
13Provided, however, that if the Director increases the cost of a
14project, the Director shall immediately report that action by
15written message to the General Assembly. The increase may be
16funded from gifts, federal or private grants, special fund
17receipts, or direct capital improvement appropriations to that
18State agency.
19    Section 50. When a State agency may change the scope of a
20capital improvement project. A State agency may increase the
21scope of a capital improvement project only if the General
22Assembly authorizes the increase. A State agency may decrease
23the scope of a capital improvement project if the Director
24authorizes the decrease. To obtain the Director's



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1authorization for a decrease in the scope of a capital
2improvement project, a State agency shall submit its request to
3the Director in writing and shall state the reason for the
5    Section 55. Project Reserve Fund.
6    (a) There is created the Project Reserve Fund as a special
7fund in the State treasury. When a construction contract is
8entered for a capital improvement project for which the General
9Assembly has enacted an appropriation, the appropriation is
10encumbered for the project's costs of real property
11acquisition, planning, design, site development, construction,
12contingencies, and other related costs. If the amount
13appropriated for the project exceeds the amount encumbered, the
14excess shall be credited to the Project Reserve Fund, unless
15otherwise required by law. The Director may authorize funds in
16the Fund to be used for any of the following:
17        (1) An emergency repair and renovation project at a
18    State facility.
19        (2) The award of a project contract when bids for the
20    contract exceed the amount appropriated for it if the
21    project was designed within the scope intended by the
22    appropriation and if the Director finds that all means to
23    award the contract within the appropriation were
24    reasonably attempted.
25        (3) A reversion to the principal fund from which



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1    revenue was appropriated for a project when the amount
2    encumbered for the project is less than the amount
3    appropriated.
4    (b) Whenever the Director authorizes the use of moneys from
5the Project Reserve Fund, the Director shall immediately report
6that action by written message to the General Assembly.
7    Section 60. Reversion of appropriation and lapse of project
9    (a) A State agency shall begin the planning of or the
10construction of an authorized capital improvement project
11during the fiscal year in which the funds are appropriated. If
12it does not, the Director may credit the appropriation to the
13Project Reserve Fund, unless otherwise required by law. If the
14Director does not credit the appropriation to the Project
15Reserve Fund, the appropriation shall revert to the principal
16fund from which it was appropriated. The Director may, for good
17cause, allow a State agency to take up to an additional 12
18months to take the actions required by this subsection.
19    (b) Authorizations for capital improvement projects shall
20lapse if any of the following occur:
21        (1) the appropriation for a capital improvement
22    project reverts;
23        (2) the construction of a project does not begin during
24    the first 2 fiscal years in which funds are appropriated;
25    or



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1        (3) the Director redirects funds appropriated for a
2    capital improvement project, where authorized to do so by
3    the General Assembly.
4    The Director may, for good cause, allow a State agency to
5take up to an additional 12 months to begin construction of a
6project; however, if the Director approves an extension of time
7under this subsection and construction of the project has not
8begun by the end of the extension, the authorization for the
9project shall lapse.
10    Section 65. State university capital improvement projects
11from sources that are not General Fund sources; approval of new
12project or change in scope of existing project. Notwithstanding
13any other provision of this Act, the board of trustees of a
14State university may approve:
15        (1) expenditures to plan a capital improvement project
16    of that State university the planning for which is to be
17    funded entirely with non-General Fund money;
18        (2) expenditures for a capital improvement project of
19    that State university that is to be funded and operated
20    entirely with non-General Fund money; or
21        (3) a change in the scope of any previously approved
22    capital improvement project of that State university,
23    provided that both the project and change in scope are
24    funded entirely with non-General Fund money.
25    The board of trustees of that State university shall report



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1any expenditure made pursuant to this section to the Office and
2to the Commission on Government Forecasting and
4    Section 70. The State Finance Act is amended by adding
5Section 5.866 as follows:
6    (30 ILCS 105/5.866 new)
7    Sec. 5.866. The Project Reserve Fund.
8    Section 99. Effective date. This Act takes effect upon
9becoming law.