SB1919 103RD GENERAL ASSEMBLY

  
  

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1919

 

Introduced 2/9/2023, by Sen. John F. Curran

 

SYNOPSIS AS INTRODUCED:
 
New Act
5 ILCS 140/7.5
30 ILCS 235/2  from Ch. 85, par. 902

    Creates the Public-Private Partnerships Act. Provides that the intent of the Act, among others, is to authorize responsible public entities to develop and enter into public-private partnership agreements for qualifying projects which result in the availability of such projects to the public in a more timely and less costly fashion, thereby serving the public safety, benefit, and welfare. Creates the Infrastructure Investment Commission, including its membership and duties. Establishes the qualifications and processes related to unsolicited proposals for projects that become public-private agreements for the building, upgrading, providing of services, operating, ownership or financing of facilities. Sets forth the procedures and standards for the formation of public-private agreements between public and private entities, including the powers of the entities and the provisions of the agreements. Establishes development and operation standards for projects. Includes provisions related to the taxation and financial arrangements related to public-private partnerships. Sets forth additional provisions related to: the acquisition of property; law enforcement; and additional powers of responsible public entities with respect to qualifying projects. Makes conforming changes in the Freedom of Information Act and the Public Funds Investment Act.


LRB103 30701 MXP 57174 b

 

 

A BILL FOR

 

SB1919LRB103 30701 MXP 57174 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 1. Purpose; Authority

 
5    Section 1-1. Short title. This Act may be cited as the
6Public-Private Partnerships Act.
 
7    Section 1-5. Legislative findings and declaration.
8    (a) It is hereby found and declared that it is the public
9policy and the public purpose of the State to promote the
10development, financing, providing of services, and operation
11of facilities that serve the needs of the public.
12    (b) It is hereby found and declared that there are
13inadequate public resources to develop, modernize, refurbish,
14and maintain public infrastructure and services in a timely
15and cost certain manner, and that such need is impeded by
16existing methods of procurement and funding.
17    (c) It is hereby found and declared that authorizing
18private entities to do all or part of the development,
19planning, design, construction, maintenance, repair,
20rehabilitation, expansion, financing, and operation of one or
21more facilities, and the providing of services, can result in
22the availability of facilities and services to the public in a

 

 

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1more timely, more efficient, or less costly fashion, thereby
2serving the public safety and welfare. Properly planned and
3structured public-private partnerships and unsolicited
4proposals can help meet such needs by improving the schedule
5for delivery, lowering the cost, and providing additional
6funding. Obtaining private sector financing using a P3 model
7leverages resources to meet the demand for new infrastructure
8and services in the State. Pension funds, private investors,
9developers, contractors, and other private entities through a
10public-private partnership can use long-term financing to
11invest in public infrastructure and services and further use
12their private expertise in construction, design-build,
13management and oversight, project life-cycle planning, and
14other areas of expertise not employed by public entities.
15Private capital invested in infrastructure and service
16investments have the potential to generate stable long-term
17returns while ensuring public infrastructure and services are
18progressively maintained to benefit State residents. Pension
19funds and insurance companies seek investments to match their
20long-term liabilities.
21    (d) It is hereby found and declared that citizens have a
22right to transparency and public accountability, including
23dissemination of information about the public benefits of P3
24projects, open, equitable, transparent, proactive, and
25effective communications with the public achieved through
26consistent communication activities that recognize the

 

 

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1respective contributions of the responsible public entity and
2the partnering private entity.
3    (e) It is hereby found and declared that public-private
4agreements entered into by private entities and responsible
5public entities under this Act shall allow for:
6        (1) transparency, oversight, and public information
7    sharing;
8        (2) compliance with all State and federal
9    environmental laws;
10        (3) fairness for local jurisdictions when negotiating
11    the public-private agreements;
12        (4) the public sector to gain access to new revenue
13    sources;
14        (5) new service delivery capacity;
15        (6) the optimal sharing of risk based upon P3 best
16    practice, industry feedback, relevant project precedents,
17    and prevailing market conditions;
18        (7) cost and schedule certainty; and
19        (8) predicted service quality, performance,
20    innovation, and whole-of-life asset management.
 
21    Section 1-10. Actions serving a public purpose. Actions
22pursuant to this Act serve the public purposes of this Act if
23such actions facilitate the timely development, planning,
24design, construction, maintenance, repair, rehabilitation,
25expansion, financing, or operation of a qualifying project.
 

 

 

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1    Section 1-15. Intent. It is the intent of this Act to:
2        (1) Authorize responsible public entities to develop
3    and enter into public-private partnership agreements for
4    qualifying projects which result in the availability of
5    such projects to the public in a more timely and less
6    costly fashion, thereby serving the public safety,
7    benefit, and welfare.
8        (2) Permit responsible public entities to receive and
9    consider unsolicited proposals from private sector parties
10    in a manner that eliminates the perception of bias,
11    ensures transparency, fairness, and best value for the
12    responsible public entity and which bring innovative
13    concepts and ideas to benefit responsible public entities.
14        (3) Grant public and private entities the greatest
15    possible flexibility in contracting with each other for
16    the provision of infrastructure and public services.
17        (4) Encourage investment in the State by private
18    entities that facilitates services, development, planning,
19    design, construction, maintenance, repair,
20    rehabilitation, expansion, financing, and operation of
21    facilities.
22        (5) Establish an Infrastructure Investment Commission
23    that focuses on supporting and promoting P3 procurement
24    models and unsolicited proposals that result in the
25    construction, renewal, or material enhancement of public

 

 

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1    services and infrastructure.
2        (6) Provide responsible public entities:
3            (A) the best-in-class project tools, expertise,
4        and resources to develop predictable procedures for
5        developing P3 projects and unsolicited proposals; and
6            (B) a process to submit unsolicited proposals to
7        responsible public entities that protects their
8        proprietary trade information.
9        (7) Provide responsible public entities and private
10    entities with:
11            (A) clarity on the intake process, evaluation, and
12        procedural aspects of unsolicited proposals; and
13            (B) a process that is short and stable resulting
14        in a competitive market and lower costs.
15        (8) Develop a steady flow of P3 projects to benefit
16    both private entities and responsible public entities.
17        (9) Establish transparency and accountability
18    guidelines for P3 projects and unsolicited proposals.
19        (10) Support the use of State design professionals,
20    construction companies, and workers to the greatest extent
21    possible by offering them the right to compete for this
22    work.
23        (11) Ensure open, equitable, transparent, proactive,
24    and effective communication with the public.
25        (12) Improve upon project development due diligence
26    practices.

 

 

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1        (13) Support the use of local, minority-owned, and
2    women-owned business enterprises and economically
3    disadvantaged firms to the greatest extent possible.
4        (14) Create jobs and provide training for those jobs
5    for minorities, women, and veterans to the greatest extent
6    possible.
7        (15) Facilitate and encourage the use of pension funds
8    to develop qualifying projects.
9        (16) Leverage private sector expertise and capital in
10    support of efficient, innovative, and timely P3
11    investments.
12        (17) Serve as a catalyst for the development of
13    public-private partnerships and unsolicited proposals in
14    the State.
15        (18) Authorize public-private agreements that
16    distribute the risk optimally between both the private and
17    public-sector partners.
18        (19) Support economic growth, clean air and water, a
19    healthy environment, and stronger communities.
 
20    Section 1-20. Construction; authority.
21    (a) The powers conferred by this Act shall be liberally
22construed in order to accomplish their purposes and are in
23addition and supplemental to the powers conferred by any other
24law. If any other law or rule is inconsistent with this Act,
25this Act is controlling as to any public-private agreement and

 

 

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1financing of any project subject to a public-private agreement
2entered into under this Act.
3    (b) This Act contains full and complete authority for
4responsible public entities to enter into agreements,
5financing, and leases with private entities to carry out the
6activities described in this Act. Except as provided in this
7Act, no procedure, proceeding, publication, notice, consent,
8approval, order, or act by a responsible public entity or any
9other State or local government or official is required to
10enter into an agreement or lease, and no law to the contrary
11affects, limits, or diminishes the authority for agreements
12and leases with private entities.
13    (c) To the extent that this Act permits or requires a
14responsible public entity or a private entity to carry out or
15comply with any law other than this Act under a public-private
16agreement, the action shall be carried out in conformity with
17this Act.
18    (d) Each responsible public entity may exercise any powers
19provided under this Act in participation or cooperation with
20any governmental entity and enter into any contracts to
21facilitate that participation or cooperation without
22compliance with any other statute. Each responsible public
23entity shall cooperate with each other and with other
24governmental entities in carrying out qualifying projects
25under this Act.
26    (e) A unit of local government may not take any action that

 

 

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1would have the effect of impairing a public-private agreement
2under this Act, except that this Section shall not diminish
3any existing police power or other power provided by law to a
4unit of local government.
5    (f) Notwithstanding any provision of law to the contrary,
6any public-private agreement entered into under a
7public-private partnership shall include a provision requiring
8any employer on the project to enter into a labor peace
9agreement with any bona fide labor organization representing,
10or attempting to represent, its employees, including employees
11employed in classifications within the craft jurisdiction, or
12in classifications called by different names when performing
13similar duties.
 
14    Section 1-25. Definitions. As used in this Act:
15    "Affected jurisdiction" means the following:
16        (1) The State and any or all of its departments,
17    divisions, agencies, authorities, or other subdivisions or
18    parts of the State.
19        (2) Any county, municipality, township, special
20    district, or unit designated as a unit of local government
21    by law in which all or a part of a qualifying project is
22    located.
23        (3) Any other public entity directly affected by the
24    qualifying project.
25    "Authority" means the Illinois State Toll Highway

 

 

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1Authority.
2    "Bona fide labor organization" means a labor organization
3recognized under the National Labor Relations Act as a bona
4fide labor organization or a labor organization with an
5accredited training program that is recognized by the Illinois
6Community College Board and the Higher Learning Commission.
7    "Commercially confidential meetings" means bilateral
8meetings prior to the execution of a project agreement between
9the responsible public entity and private sector entities
10(along with their respective advisors) to discuss matters such
11as the project agreement and proponent's suggested amendments
12to the project agreement, project design matters, and
13innovation submissions.
14    "Contractor" means a private entity that has entered into
15a public-private agreement with the responsible public entity
16to provide services to or on behalf of the responsible public
17entity.
18    "Department" means the Department of Transportation.
19    "Design-build agreement" means the agreement between the
20selected private entity and the responsible public entity
21under which the selected private entity agrees to furnish
22design, construction, and related services for a facility
23under this Act.
24    "Develop" or "development" means to do one or more of the
25following: plan, design, develop, lease, acquire, install,
26construct, reconstruct, rehabilitate, extend, or expand, or

 

 

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1provide any other service.
2    "Employees employed in classifications within the craft
3jurisdiction" means all maintenance employees, including, but
4not limited to, stationary engineers, building engineers,
5maintenance engineers, maintenance technicians, maintenance
6mechanics, mechanics, operating engineers, operators, domestic
7water operators, wastewater operators, water treatment
8technicians, and other related jobs.
9    "Facility" means:
10        (1) A facility or project that serves a public
11    purpose, including, but not limited to, any new or
12    existing local, county, or state or interstate road,
13    highway, toll highway, bridge, tunnel, or intermodal
14    facility; intercity or high-speed passenger rail; rail
15    project or facility; ferry or mass transit facility;
16    vehicle parking facility; regional or local airport;
17    seaport or waterway facility; intelligent-transport system
18    infrastructure or other transportation technology project
19    such as, but not limited to, transit priority signaling or
20    fare collection; other transportation facility or
21    infrastructure; any administrative facility
22    broadband-related project or facility; correctional
23    institution or facility; disaster mitigation facility;
24    green-energy-related project or facility; energy-related
25    project or facility; fuel supply facility or oil or gas
26    pipeline; medical or nursing care facility; recreational

 

 

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1    facility; tourism facility; solid waste management
2    facility or energy-from-waste facility; sporting or
3    cultural facility; educational facility or other building
4    or facility that is used or will be used by a public
5    educational institution; or any other public facility or
6    infrastructure or service that is used or will be used by
7    the public at large or in support of an accepted public
8    purpose or activity.
9        (2) An improvement, including equipment, of a
10    structure that will be principally used by a public entity
11    or the public at large or that supports a service delivery
12    system in the public sector.
13        (3) A sanitation, water, potable water, underground
14    water, wastewater, or surface water facility or other
15    related infrastructure; or in support of an accepted
16    public purpose or activity.
17    "Labor peace agreement" means an agreement between the
18vendor and any bona fide labor organization, that, at a
19minimum, protects the State's proprietary interests by
20prohibiting labor organizations and members from engaging in
21picketing, work stoppages, boycotts, and any other economic
22interference with the applicant's business. This agreement
23means that the vendor has agreed not to disrupt efforts by the
24bona fide labor organization to communicate with and attempt
25to organize and represent the private entity's employees. The
26agreement shall provide a bona fide labor organization access

 

 

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1at reasonable times to areas in which the private entity's
2employees work, for the purpose of meeting with employees to
3discuss their right to representation, employment rights under
4State and federal laws, and terms and conditions of
5employment.
6    "Maintain" or "maintenance" includes ordinary maintenance,
7repair, rehabilitation, capital maintenance, maintenance
8replacement, and any other categories of maintenance that may
9be designated by the responsible public entity.
10    "Operate" or "operation" means to do one or more of the
11following: maintain, improve, equip, modify, or otherwise
12operate.
13    "Private entity" means any combination of one or more
14individuals, sole proprietorships, private corporations,
15general partnerships, limited liability companies, limited
16partnerships, joint ventures, business trusts, nonprofit
17entities, or other business entities that are nongovernmental
18parties to a proposal for a qualifying project or an agreement
19related to a qualifying project. A public agency may provide
20services to a contractor as a subcontractor or subconsultant
21without affecting the private status of the private entity and
22the ability to enter into a public-private agreement.
23    "Project development fund" means a fund to assist
24responsible public entities with public-private partnership
25projects and unsolicited proposals. Approval for any
26expenditure from this fund shall be approved by the

 

 

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1Infrastructure Investment Commission.
2    "Project labor agreement" means a prehire collective
3bargaining agreement with one or more labor organizations that
4establishes the terms and conditions of employment for a
5specific project.
6    "Proposal" means all materials and documents prepared by
7or on behalf of a private entity relating to the proposed
8development, financing, or operation of a facility as a
9qualifying project.
10    "Proposer" means a private entity that has submitted an
11unsolicited proposal for a public-private agreement to a
12responsible public entity under this Act or submitted a
13proposal or statement of qualifications for a public-private
14agreement in response to a request for proposals or a request
15for qualifications for a project or services issued by a
16responsible public entity under this Act.
17    "Public-private agreement" means the public-private
18agreement between the private entity vendor and the
19responsible public entity relating to one or more of the
20proposed development, financing, or operation of a qualifying
21project that is entered into under this Act.
22    "Public-private partnership" or "P3" means
23performance-based contractual relationships between one or
24more private entities and one or more responsible public
25entities related to one or more qualifying projects.
26    "Qualifying project" or "project" means one or more

 

 

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1services or projects serving a public purpose, that is owned,
2financed, controlled, or operated by a private entity in whole
3or in part under this Act.
4    "Request for information" means all materials and
5documents prepared by or on behalf of a responsible public
6entity to solicit information from private entities with
7respect to qualifying projects.
8    "Request for proposals" means all materials and documents
9prepared by or on behalf of a responsible public entity to
10solicit proposals from private entities to enter into a
11public-private agreement.
12    "Request for qualifications" means all materials and
13documents prepared by or on behalf of a responsible public
14entity to solicit statements of qualification from private
15entities to enter into a public-private agreement.
16    "Responsible public entity" means the State and any or all
17of its departments, divisions, agencies, authorities, or other
18subdivisions or parts of the State, any county, municipality,
19school district, or special district, any other political
20subdivision of the State, or any unit of local government; a
21public body corporate and politic; or a regional entity that
22serves a public purpose and is authorized to develop or
23operate a qualifying project. "Responsible public entity" does
24not include economic development or tourism partnerships,
25councils, commissions, or entities.
26    "Revenues" means all revenues, including any combination

 

 

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1of: income; earnings and interest; user fees; lease payments;
2allocations; federal, State, and local appropriations, grants,
3loans, lines of credit, and credit guarantees; bond proceeds;
4equity investments; service payments; or other receipts,
5arising out of or in connection with a qualifying project,
6including the development, financing, and operation of a
7qualifying project. "Revenues" includes money received as
8grants, loans, lines of credit, credit guarantees, rebate or
9otherwise in aid of a qualifying project from the federal
10government, State, unit of local government, or any agency or
11instrumentality of the federal government, State, or unit of
12local government.
13    "Services" means operations, such as, but not limited to,
14parking, cable, broadband, accounting, human resources, health
15care, data management, and technology.
16    "Shortlist" means the process by which a responsible
17public entity will review, evaluate, and rank statements of
18qualifications submitted in response to a request for
19qualifications and then identify the proposers who are
20eligible to submit a detailed proposal in response to a
21request for proposals. The identified proposers constitute the
22shortlist for the qualifying project to which the request for
23proposals relates.
24    "Vendor" means a person that has been selected to enter or
25has entered into a public-private partnership agreement with
26the Department on behalf of the State for the financing,

 

 

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1management, or operation of the public-private partnership
2agreement under this Act.
3    "Unit of local government" has the meaning ascribed to
4that term in Article VII, Section 1 of the Illinois
5Constitution, and also means any unit designated as a
6municipal corporation or school district.
7    "Unsolicited proposal" means a written proposal that is
8submitted to one or more responsible public entities on the
9initiative of the private sector entity or entities for the
10purpose of developing a partnership, and that is not in
11response to a formal or informal request issued by the
12responsible public entity.
13    "User fees" or "tolls" means the rates, tolls, fees, or
14other charges imposed by the contractor for use of all or a
15portion of a qualifying project under a public-private
16agreement.
 
17
Article 2. Infrastructure Investment Commission

 
18    Section 2-5. Establishment. Pursuant to this Act, the
19Governor shall establish an Infrastructure Investment
20Commission. The Infrastructure Investment Commission shall
21report to and be funded by the Illinois Finance Authority, and
22shall be independent of other agencies and departments of the
23State.
 

 

 

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1    Section 2-10. Duties of the Commission. The Commission
2shall:
3        (1) Assist responsible public entities with
4    identifying projects, including opportunities for project
5    aggregation, for which a public-private partnership may be
6    appropriate.
7        (2) Provide technical assistance and expertise to
8    responsible public entities on using public-private
9    partnerships to develop or operate qualifying projects,
10    including analyzing their benefits and costs and the
11    innovative financing options available to support them.
12        (3) Supply template contracts.
13        (4) Track proposed, ongoing, and completed
14    private-public partnerships.
15        (5) Provide technical assistance in applying for
16    federal funding grants or financing (for example, the
17    Transportation Infrastructure Finance and Innovative Act
18    program, the Transportation Infrastructure Finance and
19    Innovative Act program Lite, the Transportation
20    Infrastructure Finance and Innovative Act program Rural
21    Project Initiative, the Regional Infrastructure
22    Accelerators Program, and the Capital Investment Grants
23    Program).
24        (6) Identify methods of encouraging competition for
25    the development or operation of qualifying projects.
26        (7) Serve as a liaison to State or federal government

 

 

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1    officials charged with promoting public-private
2    infrastructure partnerships, other State executive
3    directors of infrastructure investment commissions, and
4    regional or metropolitan public-private partnership
5    offices.
6        (8) Conduct public and stakeholder engagement and
7    outreach, including efforts to encourage transparency and
8    information sharing regarding public-private
9    partnerships.
10        (9) Issue regular updates on the future pipeline of P3
11    projects.
12        (10) Promote best practices, including standardized
13    methodologies and processes.
14        (11) Attract private investment to the State.
15        (12) Develop a project development fund to:
16            (A) assist responsible public entities to assess
17        the usefulness of the P3 model and unsolicited
18        proposals for their capital procurement and service
19        needs for specific projects;
20            (B) assist responsible public entities to manage a
21        P3 procurement project or unsolicited proposal;
22            (C) assist responsible public entities, that are
23        not experienced with P3 procurement or unsolicited
24        proposals;
25            (D) assist responsible public entities that are
26        undertaking new approaches or documenting P3 and

 

 

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1        unsolicited proposal practices in a way that will
2        assist the Infrastructure Investment Commission and
3        other responsible public entities in future projects;
4            (E) assist with training costs for key staff of a
5        responsible public entity who are integral to the
6        successful development and implementation of a
7        project;
8            (F) assist a public entity with P3 procurement or
9        an unsolicited proposal that may include, but may not
10        be limited to, a market analysis, qualitative
11        assessment report, procurement options analysis,
12        quantitative analysis, risk analysis, implementation
13        strategy, and procurement documents; and
14            (G) assist with the engagement of external and
15        accredited P3 advisors and analysts.
 
16    Section 2-15. Governance of the Commission.
17    (a) The Commission shall be headed by a Chairperson and a
186-member Board of Directors.
19    (b) The Board is responsible for the overall governance of
20the Commission and shall adopt a 5-year corporate plan and
21annual report. The Board shall meet at least quarterly to
22review the Commission's overall operation, receive committee
23reports, discuss the Investment Infrastructure Commission's
24performance, and approve expenditures. The Board shall review
25the performance of the Executive Director annually.

 

 

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1    (c) The Board shall establish committees to support the
2Board as needed, including:
3        (1) an Audit Committee to oversee the Commission's
4    standards of integrity and behavior, oversee the
5    Commission's reporting of financial information and
6    expenditures of the project development fund, oversee the
7    Commission's internal control systems, including the
8    Commission's compliance with all applicable legal and
9    regulatory requirements, review the qualifications,
10    independence and performance of the Commission's external
11    auditors, and oversee the Commission's enterprise risk
12    management plan; and
13        (2) a Budget Committee that shall develop an annual
14    revenue and expenditure plan, submit said plan to the
15    Illinois Finance Authority for approval and funding, and
16    monitor said revenues and expenditures during the course
17    of the budget cycle.
 
18    Section 2-20. Board appointments.
19    (a) The Commission established pursuant to this Article
20shall be composed of 7 members, appointed by the Governor,
21with the advice and consent of the Senate, having expertise,
22knowledge, or experience in infrastructure development or
23operation, capital market and finance, public-sector planning,
24or P3 procurement. No more than 4 members of any one political
25party may serve as members of the Commission at the same time.

 

 

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1    Members of the Commission shall, to a reasonable extent,
2represent geographically diverse regions of the State as well
3as diversity in race, ethnicity, and gender.
4    Vacancies shall be filled for the unexpired term in the
5same manner as original appointments. All appointments shall
6be in writing and filed with the Secretary of State as a public
7record.
8    (b) Of the members appointed by the Governor, one such
9member shall be appointed by the Governor as chairperson and
10shall hold office for 4 years from the date of appointment, and
11until a successor shall be duly appointed and qualified, but
12shall be subject to removal by the Executive Director of the
13Illinois Finance Authority for incompetency, neglect of duty,
14or malfeasance.
15    (c) Of the original members, other than the chairperson, 3
16shall hold office for 2 years and 3 shall hold office for 4
17years, from the date of appointment and until respective
18successors are duly appointed and qualified, but shall be
19subject to removal by the Executive Director of the Illinois
20Finance Authority for incompetency, neglect of duty, or
21malfeasance. In case of vacancies in such offices during the
22recess of the Senate, the Governor shall make a temporary
23appointment until the next meeting of the Senate when the
24Governor shall nominate a person to fill such office and any
25person so nominated, who is confirmed by the Senate, shall
26hold office during the remainder of the term and until a

 

 

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1successor is appointed and qualified. The respective term of
2the first members appointed shall be designated by the
3Governor at the time of appointment, but successors shall each
4be appointed for a term of 4 years, except that any person
5appointed to fill a vacancy shall serve only for the unexpired
6term. Members shall be eligible for reappointment. Members
7shall serve until the respective successors are duly appointed
8and qualified.
9    (d) Each such member shall receive an annual salary of
10$10,000, or as set by the Compensation Review Board, whichever
11is greater, payable in monthly installments, and shall be
12reimbursed for necessary expenses incurred in the performance
13of duties under this Act.
 
14    Section 2-25. Duties of the Chairperson of the Commission.
15The Chairperson shall preside at all meetings of the
16Commission, exercise general supervision over all powers,
17duties, obligations, and functions of the Commission, and
18shall approve or disapprove all resolutions, bylaws, rules,
19and rates made and established by the Commission, and if the
20Chairperson approves, the Chairperson shall sign the same, and
21such as the Chairperson shall not approve, the Chairperson
22shall return to the Commission with objections thereto in
23writing at the next regular meeting of the Commission
24occurring after the passage thereof. Such veto may extend to
25any one or more items contained in such resolution, bylaw,

 

 

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1rule, or rate, or to its entirety; in case the veto extends to
2a part of such resolution, bylaw, rule, or rate, the residue
3thereof shall take effect and be in force, but in case the
4Chairperson shall fail to return any resolution, bylaw, rule,
5or rate with objections thereto by the time aforesaid, the
6Chairperson shall be deemed to have approved the same, and the
7same shall take effect accordingly. Upon the return of any
8resolution, bylaw, rule, or rate by the Chairperson, the vote
9by which the same was passed shall be reconsidered by the
10Commission, and if upon such reconsideration two-thirds of all
11the members agree to pass the same, it shall go into effect
12notwithstanding the Chairperson's refusal to approve thereof.
13The process of approving or disapproving all resolutions,
14bylaws, rules, or rates, as well as the ability of the members
15to override the disapproval of the Chairperson, under this
16Section shall be set forth in the Commission's bylaws. Nothing
17in the Commission's bylaws or rules may be contrary to this
18Section.
 
19    Section 2-30. Duties of the Executive Director of the
20Commission.
21    (a) The Executive Director shall be appointed by a
22majority vote of the Commission.
23    (b) The Executive Director shall have demonstrated
24knowledge, training, or experience in 2 or more of the
25following areas:

 

 

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1        (1) infrastructure development or operation;
2        (2) capital markets and finance, including municipal
3    finance;
4        (3) public-sector planning; or
5        (4) P3 procurement.
6    (c) The Executive Director shall provide to the standing
7committees of the House and Senate having jurisdiction over
8services, transportation, or infrastructure and post online a
9report annually within 6 weeks of the end of each fiscal year
10that:
11        (1) lists those public-private partnerships that are
12    expected to be soliciting bids within the next fiscal
13    year, are in progress, were completed during the prior
14    fiscal year, or were removed from consideration during the
15    prior fiscal year; and
16        (2) summarizes actions taken by the Commission to
17    fulfill its duties under Section 2-10.
18    (d) The Executive Director shall be responsible to the
19Commission for the proper administration of the affairs of the
20Commission and policies adopted by the Chairperson and members
21of the Commission.
22    (e) All employees, as are necessary to the proper
23functioning of the Commission, shall be appointed by and
24report to the Executive Director with the consent of the
25Commission.
26    (f) The Executive Director shall hold office for 4 years

 

 

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1from the date of appointment, but shall be subject to removal
2by the Commission for incompetency, neglect of duty, or
3malfeasance.
4    (g) The Executive Director shall receive a salary of
5$15,000 per annum, or as set by a Compensation Review Board,
6whichever is greater, payable in monthly installments,
7together with reimbursement for necessary expenses incurred in
8the performance of the duties of the Executive Director. The
9Executive Director shall be eligible for reappointment.
 
10    Section 2-35. Report on compliance with legislative
11requirements. The Commission shall adhere to the Freedom of
12Information Act and the State Records Act.
 
13
Article 3. Qualification and Process

 
14    Section 3-5. Unsolicited proposals.
15    (a) A responsible public entity may receive unsolicited
16proposals for a project and may thereafter enter into a
17public-private agreement with a private entity, or a
18consortium of private entities, for the building, upgrading,
19providing of services, operating, ownership, or financing of
20facilities.
21    (b) A responsible public entity may consider, evaluate,
22and accept an unsolicited proposal for a public-private
23partnership project from a private entity if the proposal:

 

 

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1        (1) is independently developed and drafted by the
2    proposer without responsible public entity supervision;
3        (2) shows that the proposed project could benefit the
4    people served by the responsible public entity;
5        (3) includes a financing plan to allow the project to
6    move forward pursuant to the applicable responsible public
7    entity's budget and finance requirements; and
8        (4) includes sufficient detail and information for the
9    responsible entity to evaluate the proposal in an
10    objective and timely manner and permit a determination
11    that the project would be worthwhile.
12    (c) The unsolicited proposal shall include the following:
13        (1) an executive summary covering the major elements
14    of the proposal;
15        (2) qualifications concerning the experience,
16    expertise, technical competence, and qualifications of the
17    private entity and of each member of its management team
18    and of other key employees, consultants, and
19    subcontractors, including the name, address, and
20    professional designation;
21        (3) a facilities project description, including, when
22    applicable:
23            (A) the limits, scope, and location of the
24        proposed project;
25            (B) right-of-way requirements;
26            (C) connections with other facilities and

 

 

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1        improvements to those facilities necessary if the
2        project is developed;
3            (D) a conceptual project design; and
4            (E) a statement of the project's relationship and
5        impact upon relevant existing plans of the responsible
6        public entity;
7        (4) a facilities project schedule, including when
8    applicable, estimates of:
9            (A) dates of contract award;
10            (B) start of construction;
11            (C) completion of construction;
12            (D) start of operations; and
13            (E) major maintenance or reconstruction activities
14        during the life of the proposed project agreement;
15        (5) an operating plan describing the operation of the
16    completed facility if operation of a facility is part of
17    the proposal, describing the management structure and
18    approach, proposed period of operations, enforcement,
19    emergency response, and other relevant information;
20        (6) a finance plan describing the proposed financing
21    of the project identifying the source of funds to, where
22    applicable, design, construct, maintain, and manage the
23    project during the term of the proposed contract; and
24        (7) the legal basis for the project and licenses and
25    certifications; the private entity must demonstrate it has
26    licenses and certificates necessary to complete the

 

 

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1    project.
2    (d) Within 120 days after receiving an unsolicited
3proposal, the responsible public entity shall complete a
4preliminary evaluation of the unsolicited proposal and shall
5either:
6        (1) if the preliminary evaluation is unfavorable,
7    return the proposal without further action;
8        (2) if the preliminary evaluation is favorable, notify
9    the proposer that the responsible public entity will
10    further evaluate the proposal; or
11        (3) request amendments clarification or modification
12    of the unsolicited proposal.
13    (e) The procurement process for unsolicited proposals
14shall be as follows:
15        (1) If the responsible public entity chooses to
16    further evaluate an unsolicited proposal with the intent
17    to enter into a public-private agreement for the proposed
18    project the responsible public entity shall publish notice
19    in a newspaper of general circulation covering the
20    location of the project at least once a week for 2 weeks
21    stating that the responsible public entity has received a
22    proposal and will accept other proposals for the same
23    project. The timeframe within which the responsible public
24    entity may accept other proposals shall be determined by
25    the responsible public entity on a project-by-project
26    basis based upon the complexity of the qualifying project

 

 

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1    and the public benefit to be gained by allowing a longer or
2    shorter period of time within which other proposals may be
3    received; however, the timeframe for allowing other
4    proposals must be at least 21 days, but no more than 120
5    days, after the initial date of publication.
6        (2) A copy of the notice must be mailed to each local
7    government in the affected jurisdiction. The responsible
8    public entity shall provide reasonably sufficient
9    information and the identity of its contact person to
10    enable other private entities to make proposals.
11        (3) If after no less than 120 days, no counterproposal
12    is received, or if the counterproposals are evaluated and
13    found to be equal to or inferior to the original
14    unsolicited proposal, the responsible public entity may
15    proceed to negotiate a contract with the original
16    proposer.
17        (4) If after no less than 120 days one or more
18    counterproposals meeting unsolicited proposal standards
19    are received, and if, in the opinion of the responsible
20    public entity, the counterproposals are evaluated and
21    found to be superior to the original unsolicited proposal,
22    the responsible public entity shall proceed to determine
23    the successful participant through a final procurement
24    phase known as "Best and Final Offer" (BAFO). The BAFO is a
25    process whereby the responsible public entity shall invite
26    the original private sector party and the proponent

 

 

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1    submitting the superior counterproposal to engage in a
2    BAFO phase. The invitation to participate in the BAFO
3    phase will provide to each participating proposer:
4            (A) the general concepts that were considered
5        superior to the original proposal, while keeping
6        proprietary information contained in the proposals
7        confidential to the extent possible; and
8            (B) the preestablished evaluation criteria or the
9        "basis of award" to be used to determine the
10        successful proponent.
11        (5) Offers received in response to the BAFO invitation
12    will be reviewed by the responsible public entity and
13    scored in accordance with a preestablished criterion, or
14    alternatively, in accordance with the "basis of award"
15    provision identified through the BAFO process. The
16    successful proponent will be the proponent offering "best
17    value" to the responsible public entity.
18        (6) In all cases, the "basis of award" will be "best
19    value" to the responsible public entity, as determined by
20    the responsible public entity.
21    (f) After a comprehensive evaluation and acceptance of an
22unsolicited proposal and any alternatives, the responsible
23public entity may commence negotiations with a proposer,
24considering:
25        (1) the proposal has received a favorable
26    comprehensive evaluation;

 

 

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1        (2) the proposal is not duplicative of existing
2    infrastructure project or services;
3        (3) the alternative proposal does not closely resemble
4    a pending competitive proposal for a public-private
5    partnership or other procurement;
6        (4) the proposal demonstrates a unique method,
7    approach, or concept;
8        (5) facts and circumstances that preclude or warrant
9    additional competition;
10        (6) the availability of any funds, debts, or assets
11    that the State will contribute to the project;
12        (7) facts and circumstances demonstrating that the
13    project will likely have a significant adverse impact on
14    State bond ratings; and
15        (8) indemnifications included in the proposal.
 
16    Section 3-10. Competitive procurements; public-private
17partnership.
18    (a) A responsible public entity may solicit proposals for
19a qualifying project from private entities.
20    (b) After the public notification period has expired the
21responsible public entity shall rank the proposals received in
22terms of "best value". In ranking the proposals, the
23responsible public entity may consider factors that include,
24but are not limited to, public benefit, minority, women and
25veteran participation, professional qualifications, general

 

 

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1business terms, innovative design techniques or cost-reduction
2terms, and finance plans. The responsible public entity may
3then begin negotiations for a public-private agreement with
4the highest-ranked firm. If the responsible public entity is
5not satisfied with the results of the negotiations, the
6responsible public entity may terminate negotiations with the
7proposer and negotiate with the second-ranked or
8subsequent-ranked firms, in the order consistent with this
9procedure. If only one proposal is received, the responsible
10public entity may negotiate in good faith, and if the
11responsible public entity is not satisfied with the results of
12the negotiations, the responsible public entity may terminate
13negotiations with the proposer.
 
14    Section 3-15. Additional rights of responsible public
15entity. In addition to any other rights under this Act, in
16connection with any procurement under this Article, the
17responsible public entity may:
18    (1) terminate or modify by:
19        (A) withdrawing a request for information, request for
20    qualifications, or a request for proposals at any time
21    and, in its discretion, publishing a new request for
22    qualifications or request for proposals;
23        (B) declining to approve a proposal;
24        (C) declining to award a public-private agreement;
25        (D) requesting clarifications to any statement of

 

 

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1    information, qualifications, or proposal received, to seek
2    one or more revised proposals or one or more best and final
3    offers, or to conduct negotiations with one or more
4    private entities that have submitted proposals; or
5        (E) modifying the terms, provisions, and conditions of
6    a request for qualification, request for proposals,
7    technical specifications, or form of public-private
8    agreement during the pendency of a procurement.
9    (2) Interview proposers.
10    (3) Exercise any other rights available to the responsible
11public entity under this Act, applicable law, and
12administrative rule.
 
13    Section 3-20. Confidentiality of P3 proposals; disclosure.
14    (a) Except as provided in paragraph (2) of subsection (e)
15of Section 3-5, the responsible public entity may not disclose
16the contents of proposals during discussions or negotiations
17with potential proposers.
18    (b) The responsible public entity may, in its discretion
19in accordance with the Freedom of Information Act, treat as
20confidential all or some information relating to an
21unsolicited proposal, including, but not limited to,
22discussions or negotiations between the responsible public
23entity and potential proposers.
24    (c) Notwithstanding subsections (a) and (b), and with the
25exception of portions that are confidential under the Freedom

 

 

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1of Information Act, the terms of the selected offer negotiated
2under this Act shall be available for inspection and copying
3under the Freedom of Information Act after negotiations with
4the proposers have been completed.
5    (d) When disclosing the terms of the selected offer under
6subsection (c), the responsible public entity shall certify
7that the information being disclosed accurately and completely
8represents the terms of the selected offer.
9    (e) The responsible public entity shall disclose the
10contents of all proposals, except the parts of the proposals
11that may be treated as exempt in accordance with the Freedom of
12Information Act, when either:
13        (1) the request for proposal process is withdrawn
14    under Section 3-5; or
15        (2) the public-private agreement has been executed and
16    the closing for each financing transaction required to
17    provide funding to carry out the agreement has been
18    conducted.
 
19    Section 3-25. Interim agreement. Before or in connection
20with the negotiation of a public-private agreement, the
21responsible public entity may enter into an interim agreement
22with the private entity proposing the development or operation
23of the qualifying project. An interim agreement is
24discretionary with the parties. An interim agreement may:
25        (1) Authorize the private entity to commence

 

 

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1    activities for which it may be compensated related to the
2    proposed qualifying project, including, but not limited
3    to, project planning and development, design,
4    environmental analysis and mitigation, survey, other
5    activities concerning any part of the proposed qualifying
6    project, and ascertaining the availability of financing
7    for the proposed facility or facilities.
8        (2) Establish the process and timing of the
9    negotiation of the public-private agreement.
10        (3) Contain such other provisions related to an aspect
11    of the development or operation of a qualifying project
12    that the responsible public entity and the private entity
13    deem appropriate.
 
14    Section 3-30. Payment of stipulated amount for work
15product of unsuccessful proposer; rights; liability. The
16responsible public entity may pay a stipulated amount to an
17unsuccessful proposer that submits a responsive proposal in
18response to a proposal under this Article, in exchange for the
19work product contained in that proposal. Upon payment of the
20stipulated amount, and unless agreed otherwise by the parties:
21        (1) the responsible public entity and the unsuccessful
22    proposer jointly own the rights to, and may make use of any
23    work product contained in the proposal, including the
24    technologies, techniques, methods, processes, ideas, and
25    information contained in the proposal, project design, and

 

 

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1    project financial plan; and
2        (2) the use by an unsuccessful proposer of any part of
3    the work product contained in the proposal is at the sole
4    risk of the unsuccessful proposer and does not confer
5    liability on the responsible public entity.
 
6    Section 3-35. Project awards.
7    (a) The responsible public entity may perform an
8independent analysis of the proposed public-private
9partnership that demonstrates the cost-effectiveness and
10overall public benefit before the procurement process is
11initiated or before the contract is awarded.
12    (b) The responsible public entity may approve the
13development or operation of a qualifying project, or the
14design or equipping of a qualifying project that is developed
15or operated, if:
16        (1) there is a public need for, or benefit derived
17    from a project of the type that the private entity
18    proposes as the qualifying project;
19        (2) the estimated cost of the qualifying project is
20    reasonable in relation to similar facilities;
21        (3) the private entity's plans will result in the
22    timely acquisition, design, construction, improvement,
23    renovation, expansion, equipping, maintenance, or
24    operation of the qualifying project; and
25        (4) the proposed project or service is in the public's

 

 

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1    best interest.
2    (c) The responsible public entity may charge a reasonable
3fee to cover the costs of processing, reviewing, and
4evaluating the request, including, but not limited to,
5reasonable attorney or other professional fees and fees for
6financial and technical advisors or consultants and for other
7necessary advisors or consultants.
8    (d) Upon approval of a qualifying project, the responsible
9public entity shall establish a date for the commencement of
10activities related to the qualifying project. The responsible
11public entity may extend the commencement date.
12    (e) Approval of a qualifying project by the responsible
13public entity is subject to entering into a public-private
14agreement with the private entity.
15    (f) The responsible public entity shall provide
16notification to the public of its intent to commence
17negotiations with a proposer.
18    (g) Before signing a public-private agreement, the
19responsible public entity must consider a reasonable funding,
20financing and affordability plan considering the project cost,
21revenues by source, available financing, major assumptions,
22internal rate of return on private investments, if
23governmental funds are assumed in order to deliver a
24cost-feasible project, and a total cash-flow analysis
25beginning with the implementation of the project and extending
26for the term of the public-private agreement except no longer

 

 

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1than the life of the project or 75 years, whichever is earlier.
2    (h) If the responsible public entity chooses to evaluate a
3detailed proposal involving architecture, engineering, or
4landscape architecture, it may require a professional review
5and evaluation of the design and construction proposed to
6ensure material quality standards, interior space use, budget
7estimates, design and construction schedules, and sustainable
8design and construction standards.
9    (i) Each facility project awarded by a responsible public
10entity shall:
11        (1) ensure that provision is made for the private
12    entity's performance and payment of subcontractors,
13    including, but not limited to, surety bonds, letters of
14    credit, parent company guarantees, and lender and equity
15    partner guarantees. Components of the qualifying project
16    that involve construction performance and payment bonds
17    are subject to the recordation, notice, suit limitation,
18    and other requirements of the Public Construction Bond
19    Act;
20        (2) ensure the performance and payment of
21    subcontractors;
22        (3) ensure that the public-private agreement addresses
23    termination upon a material default of the public-private
24    agreement; and
25        (4) pay wages pursuant to prevailing wage standards.
 

 

 

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1
Article 4. Formation of an Agreement

 
2    Section 4-5. Exercise of powers.
3    (a) A responsible public entity may exercise the powers
4granted by this Act to undertake qualifying projects through
5public-private agreements with one or more private entities.
6    (b) The Authority may enter into a public-private
7partnership for qualifying projects on the toll highway system
8such as commuter rail or high-speed rail lines, and
9intelligent transportation infrastructure that will enhance
10the safety, efficiency, and environmental quality of the State
11highway system. The Authority may operate or provide
12operational services such as toll collection on highways that
13are developed or financed, or both, through a public-private
14agreement entered into by another public entity, under an
15agreement with the public entity or contractor responsible for
16the transportation project.
 
17    Section 4-10. Powers of contractor; user fees. A
18contractor has:
19        (1) all powers allowed by law generally to a private
20    entity having the same form of organization as the
21    contractor; and
22        (2) the power to develop, own, control, finance, and
23    operate the qualifying project, and to impose and collect
24    user fees, subject to the terms of the public-private

 

 

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1    agreement. No tolls or user fees may be imposed by the
2    contractor except as set forth in a public-private
3    agreement.
 
4    Section 4-15. Powers of contractor; property interests.
5The contractor may own, lease, or acquire any property
6interest or other right to develop, finance, or operate the
7qualifying project, as long as the qualifying project retains
8a public purpose.
 
9    Section 4-20. Powers of contractor; user classifications
10and enforcement of rules. In operating the qualifying project,
11the contractor may do the following:
12        (1) Make user classifications as permitted in the
13    public-private agreement.
14        (2) As permitted in the public-private agreement or
15    otherwise with the consent of the responsible public
16    entity, make and enforce reasonable rules to the same
17    extent that the responsible public entity may make and
18    enforce rules with respect to a similar project.
 
19
Article 5. Public-Private Agreements

 
20    Section 5-5. Provisions of agreement.
21    (a) Before beginning the development, financing,
22operation, or any combination of the development, financing,

 

 

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1or operation of a qualifying project under this Act, the
2contractor must enter into a public-private agreement with the
3responsible public entity. Subject to the other provisions of
4this Act, the responsible public entity and a private entity
5may enter into a public-private agreement with respect to a
6qualifying project. Subject to the requirements of this Act, a
7public-private agreement may provide that the private entity,
8acting on behalf of the responsible public entity, is
9partially or entirely responsible for any combination of
10developing, financing, or operating the qualifying project.
11    (b) The public-private agreement must be in writing and
12may, as determined appropriate by the responsible public
13entity for the particular qualifying project, provide for some
14or all of the following:
15        (1) Development, planning, design, construction,
16    maintenance, repair, rehabilitation, expansion, providing
17    or services, financing, and operation of the qualifying
18    project under terms set forth in the public-private
19    agreement, in any form as deemed appropriate by the
20    responsible public entity, including, but not limited to,
21    a long-term concession or lease, or an agent to build,
22    finance, own, operate or maintain or any one or
23    combination of the same, as applicable and serving a
24    public purpose, a design-bid-build agreement, design-build
25    agreement, design-build-maintain agreement,
26    design-build-finance agreement,

 

 

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1    design-build-operate-maintain agreement, and
2    design-build-finance-operate-maintain agreement.
3        (2) Delivery of performance and payment bonds or other
4    performance security determined suitable by the
5    responsible public entity, including letters of credit,
6    United States bonds and notes, parent guaranties, and cash
7    collateral, in connection with the development, financing,
8    or operation of the qualifying project, in the forms and
9    amounts set forth in the public-private agreement or
10    otherwise determined as satisfactory by the responsible
11    public entity to protect the responsible public entity and
12    payment bond beneficiaries who have a direct contractual
13    relationship with the contractor or a subcontractor of the
14    contractor to supply labor or material. The payment or
15    performance bond or alternative form of performance
16    security is not required for the portion of a
17    public-private agreement that includes only design,
18    planning, or financing services, the performance of
19    preliminary studies, or the acquisition of real property.
20        (3) Review of plans for any development or operation,
21    or both, of the qualifying project by the responsible
22    public entity.
23        (4) Inspection of any construction of or improvements
24    to the qualifying project by the responsible public entity
25    or another entity designated by the responsible public
26    entity or under the public-private agreement to ensure

 

 

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1    that the construction or improvements conform to the
2    standards set forth in the public-private agreement or are
3    otherwise acceptable to the responsible public entity.
4        (5) Maintenance of:
5            (A) one or more policies of public liability
6        insurance (copies of which shall be filed with the
7        responsible public entity accompanied by proofs of
8        coverage); or
9            (B) self-insurance each in the form and amount as
10        set forth by the public-private agreement or otherwise
11        satisfactory to the responsible public entity as
12        reasonably sufficient to insure coverage of tort
13        liability to the public and employees and to enable
14        the continued operation of the qualifying project.
15        (6) Where operations are included within the
16    contractor's obligations under the public-private
17    agreement, monitoring of the maintenance practices of the
18    contractor by the responsible public entity or another
19    entity designated by the responsible public entity or
20    under the public-private agreement and the taking of the
21    actions the responsible public entity finds appropriate to
22    ensure that the qualifying project is properly maintained.
23        (7) Reimbursement to be paid to the responsible public
24    entity as set forth in the public-private agreement for
25    services provided by the responsible public entity.
26        (8) Filing of appropriate financial statements and

 

 

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1    reports as set forth in the public-private agreement or as
2    otherwise in a form acceptable to the responsible public
3    entity on a periodic basis.
4        (9) Compensation or payments to the contractor.
5    Compensation or payments may include any or a combination
6    of the following:
7            (A) A base fee and additional fee for project
8        savings as the design-builder of a construction
9        project.
10            (B) A development fee, payable on a lump sum
11        basis, progress payment basis, project milestone
12        basis, time and materials basis, or any other basis
13        considered appropriate by the responsible public
14        entity.
15            (C) An operations fee, payable on a lump sum
16        basis, time and material basis, periodic basis, or any
17        other basis considered appropriate by the responsible
18        public entity.
19            (D) Some or all of the revenues, if any, arising
20        out of operation of the qualifying project.
21            (E) A maximum rate of return on investment or
22        return on equity or a combination of the 2.
23            (F) In-kind services, materials, property,
24        equipment, or other items.
25            (G) Compensation in the event of any termination.
26            (H) Availability payments or similar arrangements

 

 

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1        whereby payments are made to the contractor pursuant
2        to the terms set forth in the public-private
3        agreements or related agreements.
4            (I) Other compensation set forth in the
5        public-private agreement or otherwise considered
6        appropriate by the responsible public entity.
7        (10) Compensation or payments to the responsible
8    public entity, if any. Compensation or payments to the
9    responsible public entity may include any one or
10    combination of the following:
11            (A) A concession or lease payment or other fee,
12        which may be payable upfront or on a periodic basis or
13        on another basis deemed appropriate by the responsible
14        public entity.
15            (B) Sharing of revenues, if any, from the
16        operation of the qualifying project.
17            (C) Sharing of project savings from the
18        construction or services of the qualifying project.
19            (D) Payment for any services, materials,
20        equipment, personnel, or other items provided by the
21        responsible public entity to the contractor under the
22        public-private agreement or in connection with the
23        qualifying project.
24            (E) Other compensation set forth in the
25        public-private agreement or otherwise considered
26        appropriate by the parties.

 

 

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1        (11) The date and terms of termination of the
2    contractor's authority and duties under the public-private
3    agreement and the circumstances under which the
4    contractor's authority and duties may be terminated before
5    that date.
6        (12) The term of a public-private agreement, including
7    all extensions, may not exceed 75 years.
8        (13) Upon termination of the public-private agreement,
9    the authority of the contractor under this Act ceases,
10    except for those duties and obligations that extend beyond
11    the termination, as set forth in the public-private
12    agreement, and all interests in the qualifying project
13    shall revert to the responsible public entity.
14        (14) Rights and remedies of the responsible public
15    entity if the contractor defaults or otherwise fails to
16    comply with the terms of the public-private agreement.
17        (15) Procedures for the selection of professional
18    design firms and subcontractors, which shall include
19    procedures consistent with the Architectural, Engineering,
20    and Land Surveying Qualifications Based Selection Act for
21    the selection of professional design firms and may
22    include, in the discretion of the responsible public
23    entity, procedures consistent with the low bid procurement
24    procedures outlined in the Illinois Procurement Code for
25    the selection of construction companies.
26        (16) Other terms, conditions, and provisions that the

 

 

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1    responsible public entity finds are in the public's
2    interest.
3    (c) Notwithstanding any provision of law to the contrary,
4any public-private agreement entered into under a
5public-private partnership between a vendor and a responsible
6public entity shall include a provision requiring the selected
7vendor to enter into a labor peace agreement with any bona fide
8labor organization, including any bona fide labor organization
9that represents or is attempting to represent any of its
10employees.
 
11    Section 5-10. Additional requirements.
12    (a) The responsible public entity may fix the amounts of
13user fees that a contractor may charge and collect for the use
14of any part of a qualifying project in accordance with the
15public-private agreement. In fixing the amounts, the
16responsible public entity may establish amounts for the user
17fees and may provide that any increases or decreases of those
18fees shall be based upon the indices, methodologies, or other
19factors the responsible public entity considers appropriate.
20    (b) A public-private agreement may:
21        (1) authorize the imposition of tolls;
22        (2) authorize the contractor to adjust the user fees
23    for the use of the qualifying project, so long as the
24    amounts charged and collected by the contractor do not
25    exceed amounts established by the responsible public

 

 

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1    entity under the public-private agreement;
2        (3) provide that any adjustment by the contractor
3    permitted under paragraph (2) may be based on the indices,
4    methodologies, or other factors described in the
5    public-private agreement;
6        (4) authorize the contractor to charge and collect
7    user fees through methods, including, but not limited to,
8    automatic vehicle identification systems, electronic toll
9    collection systems, and, to the extent permitted by law,
10    global positioning system-based, photo-based, or
11    video-based toll collection enforcement, if, to the
12    maximum extent feasible, the contractor will (i) use open
13    road tolling methods that allow payment of tolls at
14    highway speeds and (ii) comply with United States
15    Department of Transportation requirements and best
16    practices with respect to tolling methods; and
17        (5) authorize the collection of user fees by a third
18    party.
 
19    Section 5-15. Loans for qualifying project. In the
20public-private agreement, the responsible public entity may
21agree to make loans for the development or operation, or both,
22of the qualifying project from time to time from amounts
23received from the federal government or any agency or
24instrumentality of the federal government or from any State or
25local agency. No loan shall extend beyond the life of the

 

 

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1qualifying project as the parties determine.
 
2    Section 5-20. Terms and conditions in agreement. The
3public-private agreement must incorporate the duties of the
4contractor under this Act and may contain the other terms and
5conditions that the responsible public entity determines serve
6the public purpose of this Act. The public-private agreement
7may contain provisions under which the responsible public
8entity agrees to provide notice of default and cure rights for
9the benefit of the contractor and the persons or entities
10described in the public-private agreement that are providing
11financing for the qualifying project. The public-private
12agreement may contain any other lawful term or condition to
13which the contractor and the responsible public entity
14mutually agree, including provisions regarding change orders,
15dispute resolution, required upgrades to the qualifying
16project, tolling policies, changes and modifications to the
17qualifying project, unavoidable delays, or provisions for a
18loan or grant of public funds for the development or
19operation, or both, of one or more qualifying projects.
 
20    Section 5-25. Responsible public entity takeover of
21qualifying project after termination or expiration.
22    (a) Upon the termination or expiration of the
23public-private agreement, including a termination for default,
24the responsible public entity shall have the right to take

 

 

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1over the qualifying project and to succeed to all of the right,
2title, and interest in the qualifying project and all real
3property acquired as a part of the project shall be held in the
4name of the responsible public entity.
5    (b) If a responsible public entity elects to take over a
6qualifying project as provided in subsection (a), the
7responsible public entity may do the following:
8        (1) develop, finance, or operate the project,
9    including through a public-private agreement entered in
10    accordance with this Act; and
11        (2) impose, collect, retain, and use user fees, if
12    any, for the project.
13    (c) If a responsible public entity elects to take over a
14qualifying project as provided in subsection (a), the
15responsible public entity may use the revenues, if any, for
16any lawful purpose, including to:
17        (1) make payments to individuals or entities in
18    connection with any financing of the qualifying project,
19    including through a public-private agreement entered into
20    in accordance with this Act;
21        (2) permit a contractor to receive some or all of the
22    revenues under a public-private agreement entered into
23    under this Act;
24        (3) pay development costs of the project;
25        (4) pay current operation costs of the project or
26    facilities;

 

 

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1        (5) pay the contractor for any compensation or payment
2    owed upon termination; and
3        (6) pay for the development, financing, or operation
4    of any other project or projects the responsible public
5    entity deems appropriate.
6    (d) The full faith and credit of the State or any political
7subdivision of the State or the responsible public entity is
8not pledged to secure any financing of the contractor by the
9election to take over the qualifying project. Assumption of
10development or operation, or both, of the qualifying project
11does not obligate the State or any political subdivision of
12the State or the responsible public entity to pay any
13obligation of the contractor.
 
14    Section 5-30. Changes added by written amendment. Any
15changes in the terms of the public-private agreement agreed to
16by the parties shall be added to the public-private agreement
17by written amendment.
 
18    Section 5-35. Agreements with multiple private entities.
19Notwithstanding any other provision of this Act, the
20responsible public entity may enter into a public-private
21agreement with multiple private entities if the responsible
22public entity determines in writing that it is in the public
23interest to do so.
 

 

 

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1    Section 5-40. Agreement provisions for qualifying project.
2The public-private agreement may provide for all or part of
3the development, financing, or operation of phases or segments
4of the qualifying project.
 
5
Article 6. Development and Operations Standards for Projects

 
6    Section 6-5. Standards of compliance for plans and
7specifications. The plans and specifications, if any, for each
8project developed under this Act must comply with:
9        (1) the responsible public entity's standards for
10    other projects of a similar nature or as otherwise
11    provided in the public-private agreement;
12        (2) the Professional Engineering Practice Act of 1989,
13    the Structural Engineering Practice Act of 1989, the
14    Illinois Architecture Practice Act of 1989, Section 30-22
15    of the Illinois Procurement Code as applicable as it
16    applies to responsible bidders, and the Illinois
17    Professional Land Surveyor Act of 1989; and
18        (3) any other applicable State or federal standards.
 
19    Section 6-10. Highway projects under Act considered part
20of State highway system. Each highway project constructed or
21operated under this Act is considered to be part of:
22        (1) the State highway system for purposes of
23    identification, maintenance standards, and enforcement of

 

 

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1    traffic laws if the highway project is under the
2    jurisdiction of the Department;
3        (2) the toll highway system for purposes of
4    identification, maintenance standards, and enforcement of
5    traffic laws if the highway project is under the
6    jurisdiction of the Authority; or
7        (3) a country or municipal road system for purposes of
8    identification, maintenance standards, and enforcement of
9    traffic laws if the highway or road project is under the
10    jurisdiction of a county or municipality.
 
11    Section 6-15. Service agreements. Any unit of local
12government or State agency may enter into agreements with the
13contractor for maintenance or other services under this Act.
 
14    Section 6-20. Cooperation with federal and local agencies.
15The responsible public entity shall seek the cooperation of
16federal and local agencies to expedite all necessary federal
17and local permits, licenses, and approvals necessary for
18projects under this Act.
 
19
Article 7. Taxation of Contractors

 
20    Section 7-5. Exemptions from property taxes. A project
21under this Act and tangible personal property used exclusively
22in connection with a project that are:

 

 

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1        (1) owned by the responsible public entity and leased,
2    licensed, financed, or otherwise conveyed to a contractor;
3    or
4        (2) acquired, constructed, or otherwise provided by a
5    contractor on behalf of the responsible public entity.
6    Under the terms of a public-private agreement are
7considered to be public property devoted to an essential
8public and governmental function and purpose. The property,
9and a contractor's leasehold estate or interests in the
10property, are exempt from all ad valorem property taxes and
11special assessments levied against property by the State or
12any political subdivision of the State.
 
13    Section 7-10. Exemptions from retail and use taxes. A
14contractor or any other person purchasing tangible personal
15property for incorporation into or improvement of a structure
16or facility constituting or becoming part of the land included
17in a project is entitled to the exemption from retail tax and
18use tax provided under the Retailers' Occupation Tax Act and
19Use Tax Act, respectively, with respect to that tangible
20personal property.
 
21    Section 7-15. Taxation of income. Income received by a
22contractor under the terms of a public-private agreement is
23subject to taxation in the same manner as income received by
24other private entities.
 

 

 

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1
Article 8. Financial Arrangements

 
2    Section 8-5. Actions to obtain credit assistance. The
3responsible public entity may do any combination of applying
4for, executing, or endorsing applications submitted by private
5entities to obtain federal, State, or local credit assistance
6for qualifying projects developed, financed, or operated under
7this Act, including loans, lines of credit, and guarantees.
 
8    Section 8-10. Actions to obtain assistance. The
9responsible public entity may take any action to obtain
10federal, State, or local assistance for a qualifying project
11that serves the public purpose of this Act and may enter into
12any contracts required to receive the federal assistance. The
13responsible public entity may determine that it serves the
14public purpose of this Act for all or any portion of the costs
15of a qualifying project to be paid, directly or indirectly,
16from the proceeds of a grant or loan, line of credit, or loan
17guarantee made by a local, State, or federal government or any
18agency or instrumentality of a local, State, or federal
19government. Such assistance may include, but not be limited
20to, federal credit assistance pursuant to the Transportation
21Infrastructure Finance and Innovation Act and the Water
22Infrastructure and Finance and Innovation Act.
 

 

 

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1    Section 8-15. Grants or loans from amounts received from
2governments. The responsible public entity may agree to make
3grants or loans for the development, financing, or operation
4of a qualifying project from time to time, from amounts
5received from the federal, State, or local government or any
6agency or instrumentality of the federal, State, or local
7government.
 
8    Section 8-20. Terms and conditions of financing. Any
9financing of a qualifying project may be in the amounts for the
10term, and upon other terms and conditions that are determined
11by the parties to the public-private agreement and the
12financing shall not exceed the life of the qualifying project,
13not to exceed 75 years.
 
14    Section 8-25. General powers for the purpose of financing.
15For the purpose of financing a qualifying project, the
16contractor and the responsible public entity may do the
17following:
18        (1) Propose to use any and all of the revenues
19    generated by a qualifying project to pay principal,
20    interest, costs of operation and maintenance of a
21    qualifying project.
22        (2) Enter into grant agreements.
23        (3) Access any other funds for design, construction,
24    operation or maintenance of a qualifying project available

 

 

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1    to the responsible public entity or private entity,
2    including public or private pension funds.
3        (4) Accept grants from the responsible public entity
4    or other public or private agency or entity.
5        (5) Enter into a lease with a private entity for a
6    qualifying project and may lease a qualifying project to a
7    contractor under a public-private agreement.
8        (6) Pay lease rentals for leases that the responsible
9    public entity has entered into under this Act that secure
10    bonds or debts issued or approved under this Article from
11    any legally available revenues, including:
12            (A) payments received from a contractor;
13            (B) federal highway revenues;
14            (C) distributions from the State highway fund; and
15            (D) other funds available to the responsible
16        public entity for such purpose.
 
17    Section 8-30. Debt.
18    (a) For the purpose of financing a qualifying project, the
19responsible public entity may by resolution borrow money and
20enter into agreements, leases, contracts or subleases with a
21private entity, and do the following:
22        (1) Issue, sell, and refund bonds, notes of the
23    responsible public entity, debt, or other debt
24    obligations.
25        (2) Enter into loan agreements or other credit

 

 

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1    facilities.
2        (3) Secure any financing with a pledge of revenues,
3    security interest in, or lien on all or part of a property
4    subject to the agreement, including all of the party's
5    property interests in the qualifying project.
6    (b) Any term of such debt shall not exceed the earlier of
7the term of the public-private agreement, the life of the
8qualifying project or 75 years.
9    (c) The bonds, notes, and other forms of debt issued under
10this Article:
11        (1) constitute the corporate obligations of the
12    responsible public entity;
13        (2) do not constitute an indebtedness of the State
14    within the meaning or application of any constitutional
15    provision or limitation; and
16        (3) are payable solely as to both principal and
17    interest and other associated fees from:
18            (A) the revenues from a lease to the responsible
19        public entity, if any;
20            (B) proceeds of bonds or notes, if any;
21            (C) investment earnings on proceeds of bonds or
22        notes; or
23            (D) other funds available to the responsible
24        public entity for such purpose.
 
25    Section 8-35. Use of public funds for financing. For the

 

 

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1purpose of financing a qualifying project, public funds,
2including public or private pension funds, may be used and
3aggregated with funds provided by or on behalf of the
4contractor or other private entities. The use of public funds
5to finance all or a portion of qualifying projects authorized
6under this Article 8 constitutes authorized investments as
7provided in Section 2 of the Public Funds Investment Act.
 
8    Section 8-40. Private activity bonds for purpose of
9financing. For the purpose of financing a qualifying project,
10a responsible public entity is authorized to do any
11combination of applying for, executing, or endorsing
12applications for an allocation of tax-exempt bond financing
13authorization provided by the United States Internal Revenue
14Code, as well as financing available under any other federal
15law or program.
 
16    Section 8-45. Debt limitations. Any bonds, debt, or other
17securities or other financing issued by or on behalf of a
18contractor for the purposes of a project undertaken under this
19Act shall not be deemed to constitute a debt of the responsible
20public entity, the State, or any political subdivision of the
21State or a pledge of the faith and credit of the responsible
22public entity, the State, or any political subdivision of the
23State, for purposes of debt limitation.
 

 

 

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1
Article 9. Acquisition of Property

 
2    Section 9-5. General. The responsible public entity may
3exercise any power of condemnation or eminent domain,
4including quick-take powers, that it has under law, for the
5purpose of acquiring any lands or estates or interests in land
6for a qualifying project to the extent provided in the
7public-private agreement or otherwise to the extent that the
8responsible public entity finds that the action serves the
9public purpose of this Act and deems it appropriate in the
10exercise of its powers under this Act.
 
11    Section 9-10. Entering into grants of property interests.
12The responsible public entity and a private entity may enter
13into the leases, licenses, easements, and other grants of
14property that the responsible public entity determines
15necessary to carry out this Act.
 
16
Article 10. Law Enforcement

 
17    Section 10-5. Powers and jurisdiction within limits of
18qualifying project.
19    (a) All law enforcement officers of the State and of each
20affected jurisdiction have the same powers and jurisdiction
21within the limits of the qualifying project as they have in
22their respective areas of jurisdiction.

 

 

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1    (b) Law enforcement officers shall have access to the
2qualifying project at any time for the purpose of exercising
3the law enforcement officers' powers and jurisdiction.
 
4    Section 10-10. Application of traffic and motor vehicle
5laws; punishment for infractions.
6    (a) The traffic and motor vehicle laws of the State or, if
7applicable, any local jurisdiction shall be the same as those
8applying to conduct on similar projects in the State or the
9local jurisdiction.
10    (b) Punishment for infractions and offenses shall be as
11prescribed by law for conduct occurring on similar projects in
12the State or the local jurisdiction.
 
13    Section 10-15. Law enforcement assistance.
14    (a) Each responsible public entity may enter into an
15agreement between and among the private entity, the
16responsible public entity, and the Illinois State Police or
17other appropriate policing authority where the project is
18located concerning the provision of law enforcement assistance
19with respect to a qualifying project that is the subject of a
20public-private agreement under this Act.
21    (b) Each responsible public entity is authorized to enter
22into arrangements with the appropriate policing unit related
23to costs incurred in providing law enforcement assistance
24under this Act.
 

 

 

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1
Article 11. Additional Powers of Responsible Public Entity
2
with Respect to Qualifying Projects

 
3    Section 11-5. Contracts and agreements necessary to
4performance of duties and execution of powers. Each
5responsible public entity may make and enter into all
6contracts and agreements necessary or incidental to the
7performance of the responsible public entity's duties and the
8execution of the responsible public entity's powers under this
9Act. Except as otherwise required by law, these contracts or
10agreements are not subject to any appropriation or approvals
11other than the approval of the responsible public entity and
12may be for any term of years and contain any terms that are
13considered reasonable by the responsible public entity.
 
14    Section 11-10. Payment of costs. A responsible public
15entity may pay the costs incurred under a public-private
16agreement entered into under this Act from any funds available
17to the responsible public entity under this Act or any other
18statute.
 
19    Section 11-15. Action that would impair agreement
20prohibited. A responsible public entity or other State or
21local government may not take any action that would impair a
22public-private agreement entered into under this Act.
 

 

 

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1
Article 12. Amendatory Provisions

 
2    Section 12-5. The Freedom of Information Act is amended by
3changing Section 7.5 as follows:
 
4    (5 ILCS 140/7.5)
5    Sec. 7.5. Statutory exemptions. To the extent provided for
6by the statutes referenced below, the following shall be
7exempt from inspection and copying:
8        (a) All information determined to be confidential
9    under Section 4002 of the Technology Advancement and
10    Development Act.
11        (b) Library circulation and order records identifying
12    library users with specific materials under the Library
13    Records Confidentiality Act.
14        (c) Applications, related documents, and medical
15    records received by the Experimental Organ Transplantation
16    Procedures Board and any and all documents or other
17    records prepared by the Experimental Organ Transplantation
18    Procedures Board or its staff relating to applications it
19    has received.
20        (d) Information and records held by the Department of
21    Public Health and its authorized representatives relating
22    to known or suspected cases of sexually transmissible
23    disease or any information the disclosure of which is

 

 

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1    restricted under the Illinois Sexually Transmissible
2    Disease Control Act.
3        (e) Information the disclosure of which is exempted
4    under Section 30 of the Radon Industry Licensing Act.
5        (f) Firm performance evaluations under Section 55 of
6    the Architectural, Engineering, and Land Surveying
7    Qualifications Based Selection Act.
8        (g) Information the disclosure of which is restricted
9    and exempted under Section 50 of the Illinois Prepaid
10    Tuition Act.
11        (h) Information the disclosure of which is exempted
12    under the State Officials and Employees Ethics Act, and
13    records of any lawfully created State or local inspector
14    general's office that would be exempt if created or
15    obtained by an Executive Inspector General's office under
16    that Act.
17        (i) Information contained in a local emergency energy
18    plan submitted to a municipality in accordance with a
19    local emergency energy plan ordinance that is adopted
20    under Section 11-21.5-5 of the Illinois Municipal Code.
21        (j) Information and data concerning the distribution
22    of surcharge moneys collected and remitted by carriers
23    under the Emergency Telephone System Act.
24        (k) Law enforcement officer identification information
25    or driver identification information compiled by a law
26    enforcement agency or the Department of Transportation

 

 

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1    under Section 11-212 of the Illinois Vehicle Code.
2        (l) Records and information provided to a residential
3    health care facility resident sexual assault and death
4    review team or the Executive Council under the Abuse
5    Prevention Review Team Act.
6        (m) Information provided to the predatory lending
7    database created pursuant to Article 3 of the Residential
8    Real Property Disclosure Act, except to the extent
9    authorized under that Article.
10        (n) Defense budgets and petitions for certification of
11    compensation and expenses for court appointed trial
12    counsel as provided under Sections 10 and 15 of the
13    Capital Crimes Litigation Act. This subsection (n) shall
14    apply until the conclusion of the trial of the case, even
15    if the prosecution chooses not to pursue the death penalty
16    prior to trial or sentencing.
17        (o) Information that is prohibited from being
18    disclosed under Section 4 of the Illinois Health and
19    Hazardous Substances Registry Act.
20        (p) Security portions of system safety program plans,
21    investigation reports, surveys, schedules, lists, data, or
22    information compiled, collected, or prepared by or for the
23    Department of Transportation under Sections 2705-300 and
24    2705-616 of the Department of Transportation Law of the
25    Civil Administrative Code of Illinois, the Regional
26    Transportation Authority under Section 2.11 of the

 

 

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1    Regional Transportation Authority Act, or the St. Clair
2    County Transit District under the Bi-State Transit Safety
3    Act.
4        (q) Information prohibited from being disclosed by the
5    Personnel Record Review Act.
6        (r) Information prohibited from being disclosed by the
7    Illinois School Student Records Act.
8        (s) Information the disclosure of which is restricted
9    under Section 5-108 of the Public Utilities Act.
10        (t) All identified or deidentified health information
11    in the form of health data or medical records contained
12    in, stored in, submitted to, transferred by, or released
13    from the Illinois Health Information Exchange, and
14    identified or deidentified health information in the form
15    of health data and medical records of the Illinois Health
16    Information Exchange in the possession of the Illinois
17    Health Information Exchange Office due to its
18    administration of the Illinois Health Information
19    Exchange. The terms "identified" and "deidentified" shall
20    be given the same meaning as in the Health Insurance
21    Portability and Accountability Act of 1996, Public Law
22    104-191, or any subsequent amendments thereto, and any
23    regulations promulgated thereunder.
24        (u) Records and information provided to an independent
25    team of experts under the Developmental Disability and
26    Mental Health Safety Act (also known as Brian's Law).

 

 

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1        (v) Names and information of people who have applied
2    for or received Firearm Owner's Identification Cards under
3    the Firearm Owners Identification Card Act or applied for
4    or received a concealed carry license under the Firearm
5    Concealed Carry Act, unless otherwise authorized by the
6    Firearm Concealed Carry Act; and databases under the
7    Firearm Concealed Carry Act, records of the Concealed
8    Carry Licensing Review Board under the Firearm Concealed
9    Carry Act, and law enforcement agency objections under the
10    Firearm Concealed Carry Act.
11        (v-5) Records of the Firearm Owner's Identification
12    Card Review Board that are exempted from disclosure under
13    Section 10 of the Firearm Owners Identification Card Act.
14        (w) Personally identifiable information which is
15    exempted from disclosure under subsection (g) of Section
16    19.1 of the Toll Highway Act.
17        (x) Information which is exempted from disclosure
18    under Section 5-1014.3 of the Counties Code or Section
19    8-11-21 of the Illinois Municipal Code.
20        (y) Confidential information under the Adult
21    Protective Services Act and its predecessor enabling
22    statute, the Elder Abuse and Neglect Act, including
23    information about the identity and administrative finding
24    against any caregiver of a verified and substantiated
25    decision of abuse, neglect, or financial exploitation of
26    an eligible adult maintained in the Registry established

 

 

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1    under Section 7.5 of the Adult Protective Services Act.
2        (z) Records and information provided to a fatality
3    review team or the Illinois Fatality Review Team Advisory
4    Council under Section 15 of the Adult Protective Services
5    Act.
6        (aa) Information which is exempted from disclosure
7    under Section 2.37 of the Wildlife Code.
8        (bb) Information which is or was prohibited from
9    disclosure by the Juvenile Court Act of 1987.
10        (cc) Recordings made under the Law Enforcement
11    Officer-Worn Body Camera Act, except to the extent
12    authorized under that Act.
13        (dd) Information that is prohibited from being
14    disclosed under Section 45 of the Condominium and Common
15    Interest Community Ombudsperson Act.
16        (ee) Information that is exempted from disclosure
17    under Section 30.1 of the Pharmacy Practice Act.
18        (ff) Information that is exempted from disclosure
19    under the Revised Uniform Unclaimed Property Act.
20        (gg) Information that is prohibited from being
21    disclosed under Section 7-603.5 of the Illinois Vehicle
22    Code.
23        (hh) Records that are exempt from disclosure under
24    Section 1A-16.7 of the Election Code.
25        (ii) Information which is exempted from disclosure
26    under Section 2505-800 of the Department of Revenue Law of

 

 

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1    the Civil Administrative Code of Illinois.
2        (jj) Information and reports that are required to be
3    submitted to the Department of Labor by registering day
4    and temporary labor service agencies but are exempt from
5    disclosure under subsection (a-1) of Section 45 of the Day
6    and Temporary Labor Services Act.
7        (kk) Information prohibited from disclosure under the
8    Seizure and Forfeiture Reporting Act.
9        (ll) Information the disclosure of which is restricted
10    and exempted under Section 5-30.8 of the Illinois Public
11    Aid Code.
12        (mm) Records that are exempt from disclosure under
13    Section 4.2 of the Crime Victims Compensation Act.
14        (nn) Information that is exempt from disclosure under
15    Section 70 of the Higher Education Student Assistance Act.
16        (oo) Communications, notes, records, and reports
17    arising out of a peer support counseling session
18    prohibited from disclosure under the First Responders
19    Suicide Prevention Act.
20        (pp) Names and all identifying information relating to
21    an employee of an emergency services provider or law
22    enforcement agency under the First Responders Suicide
23    Prevention Act.
24        (qq) Information and records held by the Department of
25    Public Health and its authorized representatives collected
26    under the Reproductive Health Act.

 

 

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1        (rr) Information that is exempt from disclosure under
2    the Cannabis Regulation and Tax Act.
3        (ss) Data reported by an employer to the Department of
4    Human Rights pursuant to Section 2-108 of the Illinois
5    Human Rights Act.
6        (tt) Recordings made under the Children's Advocacy
7    Center Act, except to the extent authorized under that
8    Act.
9        (uu) Information that is exempt from disclosure under
10    Section 50 of the Sexual Assault Evidence Submission Act.
11        (vv) Information that is exempt from disclosure under
12    subsections (f) and (j) of Section 5-36 of the Illinois
13    Public Aid Code.
14        (ww) Information that is exempt from disclosure under
15    Section 16.8 of the State Treasurer Act.
16        (xx) Information that is exempt from disclosure or
17    information that shall not be made public under the
18    Illinois Insurance Code.
19        (yy) Information prohibited from being disclosed under
20    the Illinois Educational Labor Relations Act.
21        (zz) Information prohibited from being disclosed under
22    the Illinois Public Labor Relations Act.
23        (aaa) Information prohibited from being disclosed
24    under Section 1-167 of the Illinois Pension Code.
25        (bbb) Information that is prohibited from disclosure
26    by the Illinois Police Training Act and the Illinois State

 

 

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1    Police Act.
2        (ccc) Records exempt from disclosure under Section
3    2605-304 of the Illinois State Police Law of the Civil
4    Administrative Code of Illinois.
5        (ddd) Information prohibited from being disclosed
6    under Section 35 of the Address Confidentiality for
7    Victims of Domestic Violence, Sexual Assault, Human
8    Trafficking, or Stalking Act.
9        (eee) Information prohibited from being disclosed
10    under subsection (b) of Section 75 of the Domestic
11    Violence Fatality Review Act.
12        (fff) Images from cameras under the Expressway Camera
13    Act. This subsection (fff) is inoperative on and after
14    July 1, 2023.
15        (ggg) Information prohibited from disclosure under
16    paragraph (3) of subsection (a) of Section 14 of the Nurse
17    Agency Licensing Act.
18        (hhh) Information submitted to the Department of State
19    Police in an affidavit or application for an assault
20    weapon endorsement, assault weapon attachment endorsement,
21    .50 caliber rifle endorsement, or .50 caliber cartridge
22    endorsement under the Firearm Owners Identification Card
23    Act.
24        (iii) Information that is exempt from disclosure under
25    Section 3-20 of the Public-Private Partnership Act.
26(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;

 

 

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1101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
21-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
3eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
4101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
51-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
6eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
7102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
87-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23.)
 
9    Section 12-10. The Public Funds Investment Act is amended
10by changing Section 2 as follows:
 
11    (30 ILCS 235/2)  (from Ch. 85, par. 902)
12    Sec. 2. Authorized investments.
13    (a) Any public agency may invest any public funds as
14follows:
15        (1) in bonds, notes, certificates of indebtedness,
16    treasury bills or other securities now or hereafter
17    issued, which are guaranteed by the full faith and credit
18    of the United States of America as to principal and
19    interest;
20        (2) in bonds, notes, debentures, or other similar
21    obligations of the United States of America, its agencies,
22    and its instrumentalities;
23        (3) in interest-bearing savings accounts,
24    interest-bearing certificates of deposit or

 

 

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1    interest-bearing time deposits or any other investments
2    constituting direct obligations of any bank as defined by
3    the Illinois Banking Act;
4        (4) in short-term obligations of corporations
5    organized in the United States with assets exceeding
6    $500,000,000 if (i) such obligations are rated at the time
7    of purchase at one of the 3 highest classifications
8    established by at least 2 standard rating services and
9    which mature not later than 270 days from the date of
10    purchase, (ii) such purchases do not exceed 10% of the
11    corporation's outstanding obligations, and (iii) no more
12    than one-third of the public agency's funds may be
13    invested in short-term obligations of corporations under
14    this paragraph (4);
15        (4.5) in obligations of corporations organized in the
16    United States with assets exceeding $500,000,000 if (i)
17    such obligations are rated at the time of purchase at one
18    of the 3 highest classifications established by at least 2
19    standard rating services and which mature more than 270
20    days but less than 3 years from the date of purchase, (ii)
21    such purchases do not exceed 10% of the corporation's
22    outstanding obligations, and (iii) no more than one-third
23    of the public agency's funds may be invested in
24    obligations of corporations under this paragraph (4.5); or
25        (5) in money market mutual funds registered under the
26    Investment Company Act of 1940, provided that the

 

 

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1    portfolio of any such money market mutual fund is limited
2    to obligations described in paragraph (1) or (2) of this
3    subsection and to agreements to repurchase such
4    obligations.
5    (a-1) In addition to any other investments authorized
6under this Act, a municipality, park district, forest preserve
7district, conservation district, county, or other governmental
8unit may invest its public funds in interest bearing bonds of
9any county, township, city, village, incorporated town,
10municipal corporation, or school district, of the State of
11Illinois, of any other state, or of any political subdivision
12or agency of the State of Illinois or of any other state,
13whether the interest earned thereon is taxable or tax-exempt
14under federal law. The bonds shall be registered in the name of
15the municipality, park district, forest preserve district,
16conservation district, county, or other governmental unit, or
17held under a custodial agreement at a bank. The bonds shall be
18rated at the time of purchase within the 4 highest general
19classifications established by a rating service of nationally
20recognized expertise in rating bonds of states and their
21political subdivisions.
22    (b) Investments may be made only in banks which are
23insured by the Federal Deposit Insurance Corporation. Any
24public agency may invest any public funds in short term
25discount obligations of the Federal National Mortgage
26Association or in shares or other forms of securities legally

 

 

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1issuable by savings banks or savings and loan associations
2incorporated under the laws of this State or any other state or
3under the laws of the United States. Investments may be made
4only in those savings banks or savings and loan associations
5the shares, or investment certificates of which are insured by
6the Federal Deposit Insurance Corporation. Any such securities
7may be purchased at the offering or market price thereof at the
8time of such purchase. All such securities so purchased shall
9mature or be redeemable on a date or dates prior to the time
10when, in the judgment of such governing authority, the public
11funds so invested will be required for expenditure by such
12public agency or its governing authority. The expressed
13judgment of any such governing authority as to the time when
14any public funds will be required for expenditure or be
15redeemable is final and conclusive. Any public agency may
16invest any public funds in dividend-bearing share accounts,
17share certificate accounts or class of share accounts of a
18credit union chartered under the laws of this State or the laws
19of the United States; provided, however, the principal office
20of any such credit union must be located within the State of
21Illinois. Investments may be made only in those credit unions
22the accounts of which are insured by applicable law.
23    (c) For purposes of this Section, the term "agencies of
24the United States of America" includes: (i) the federal land
25banks, federal intermediate credit banks, banks for
26cooperative, federal farm credit banks, or any other entity

 

 

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1authorized to issue debt obligations under the Farm Credit Act
2of 1971 (12 U.S.C. 2001 et seq.) and Acts amendatory thereto;
3(ii) the federal home loan banks and the federal home loan
4mortgage corporation; and (iii) any other agency created by
5Act of Congress.
6    (d) Except for pecuniary interests permitted under
7subsection (f) of Section 3-14-4 of the Illinois Municipal
8Code or under Section 3.2 of the Public Officer Prohibited
9Practices Act, no person acting as treasurer or financial
10officer or who is employed in any similar capacity by or for a
11public agency may do any of the following:
12        (1) have any interest, directly or indirectly, in any
13    investments in which the agency is authorized to invest.
14        (2) have any interest, directly or indirectly, in the
15    sellers, sponsors, or managers of those investments.
16        (3) receive, in any manner, compensation of any kind
17    from any investments in which the agency is authorized to
18    invest.
19    (e) Any public agency may also invest any public funds in a
20Public Treasurers' Investment Pool created under Section 17 of
21the State Treasurer Act. Any public agency may also invest any
22public funds in a fund managed, operated, and administered by
23a bank, subsidiary of a bank, or subsidiary of a bank holding
24company or use the services of such an entity to hold and
25invest or advise regarding the investment of any public funds.
26    (f) To the extent a public agency has custody of funds not

 

 

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1owned by it or another public agency and does not otherwise
2have authority to invest such funds, the public agency may
3invest such funds as if they were its own. Such funds must be
4released to the appropriate person at the earliest reasonable
5time, but in no case exceeding 31 days, after the private
6person becomes entitled to the receipt of them. All earnings
7accruing on any investments or deposits made pursuant to the
8provisions of this Act shall be credited to the public agency
9by or for which such investments or deposits were made, except
10as provided otherwise in Section 4.1 of the State Finance Act
11or the Local Governmental Tax Collection Act, and except where
12by specific statutory provisions such earnings are directed to
13be credited to and paid to a particular fund.
14    (g) A public agency may purchase or invest in repurchase
15agreements of government securities having the meaning set out
16in the Government Securities Act of 1986, as now or hereafter
17amended or succeeded, subject to the provisions of said Act
18and the regulations issued thereunder. The government
19securities, unless registered or inscribed in the name of the
20public agency, shall be purchased through banks or trust
21companies authorized to do business in the State of Illinois.
22    (h) Except for repurchase agreements of government
23securities which are subject to the Government Securities Act
24of 1986, as now or hereafter amended or succeeded, no public
25agency may purchase or invest in instruments which constitute
26repurchase agreements, and no financial institution may enter

 

 

SB1919- 78 -LRB103 30701 MXP 57174 b

1into such an agreement with or on behalf of any public agency
2unless the instrument and the transaction meet the following
3requirements:
4        (1) The securities, unless registered or inscribed in
5    the name of the public agency, are purchased through banks
6    or trust companies authorized to do business in the State
7    of Illinois.
8        (2) An authorized public officer after ascertaining
9    which firm will give the most favorable rate of interest,
10    directs the custodial bank to "purchase" specified
11    securities from a designated institution. The "custodial
12    bank" is the bank or trust company, or agency of
13    government, which acts for the public agency in connection
14    with repurchase agreements involving the investment of
15    funds by the public agency. The State Treasurer may act as
16    custodial bank for public agencies executing repurchase
17    agreements. To the extent the Treasurer acts in this
18    capacity, he is hereby authorized to pass through to such
19    public agencies any charges assessed by the Federal
20    Reserve Bank.
21        (3) A custodial bank must be a member bank of the
22    Federal Reserve System or maintain accounts with member
23    banks. All transfers of book-entry securities must be
24    accomplished on a Reserve Bank's computer records through
25    a member bank of the Federal Reserve System. These
26    securities must be credited to the public agency on the

 

 

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1    records of the custodial bank and the transaction must be
2    confirmed in writing to the public agency by the custodial
3    bank.
4        (4) Trading partners shall be limited to banks or
5    trust companies authorized to do business in the State of
6    Illinois or to registered primary reporting dealers.
7        (5) The security interest must be perfected.
8        (6) The public agency enters into a written master
9    repurchase agreement which outlines the basic
10    responsibilities and liabilities of both buyer and seller.
11        (7) Agreements shall be for periods of 330 days or
12    less.
13        (8) The authorized public officer of the public agency
14    informs the custodial bank in writing of the maturity
15    details of the repurchase agreement.
16        (9) The custodial bank must take delivery of and
17    maintain the securities in its custody for the account of
18    the public agency and confirm the transaction in writing
19    to the public agency. The Custodial Undertaking shall
20    provide that the custodian takes possession of the
21    securities exclusively for the public agency; that the
22    securities are free of any claims against the trading
23    partner; and any claims by the custodian are subordinate
24    to the public agency's claims to rights to those
25    securities.
26        (10) The obligations purchased by a public agency may

 

 

SB1919- 80 -LRB103 30701 MXP 57174 b

1    only be sold or presented for redemption or payment by the
2    fiscal agent bank or trust company holding the obligations
3    upon the written instruction of the public agency or
4    officer authorized to make such investments.
5        (11) The custodial bank shall be liable to the public
6    agency for any monetary loss suffered by the public agency
7    due to the failure of the custodial bank to take and
8    maintain possession of such securities.
9    (i) Notwithstanding the foregoing restrictions on
10investment in instruments constituting repurchase agreements
11the Illinois Housing Development Authority may invest in, and
12any financial institution with capital of at least
13$250,000,000 may act as custodian for, instruments that
14constitute repurchase agreements, provided that the Illinois
15Housing Development Authority, in making each such investment,
16complies with the safety and soundness guidelines for engaging
17in repurchase transactions applicable to federally insured
18banks, savings banks, savings and loan associations or other
19depository institutions as set forth in the Federal Financial
20Institutions Examination Council Policy Statement Regarding
21Repurchase Agreements and any regulations issued, or which may
22be issued by the supervisory federal authority pertaining
23thereto and any amendments thereto; provided further that the
24securities shall be either (i) direct general obligations of,
25or obligations the payment of the principal of and/or interest
26on which are unconditionally guaranteed by, the United States

 

 

SB1919- 81 -LRB103 30701 MXP 57174 b

1of America or (ii) any obligations of any agency, corporation
2or subsidiary thereof controlled or supervised by and acting
3as an instrumentality of the United States Government pursuant
4to authority granted by the Congress of the United States and
5provided further that the security interest must be perfected
6by either the Illinois Housing Development Authority, its
7custodian or its agent receiving possession of the securities
8either physically or transferred through a nationally
9recognized book entry system.
10    (j) In addition to all other investments authorized under
11this Section, a community college district may invest public
12funds in any mutual funds that invest primarily in corporate
13investment grade or global government short term bonds.
14Purchases of mutual funds that invest primarily in global
15government short term bonds shall be limited to funds with
16assets of at least $100 million and that are rated at the time
17of purchase as one of the 10 highest classifications
18established by a recognized rating service. The investments
19shall be subject to approval by the local community college
20board of trustees. Each community college board of trustees
21shall develop a policy regarding the percentage of the
22college's investment portfolio that can be invested in such
23funds.
24    (k) In addition to all other investments authorized under
25this Section, a public agency may invest in a financial
26arrangement that finances a qualifying project authorized

 

 

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1under Article 8 of the Public-Private Partnership Act.
2    Nothing in this Section shall be construed to authorize an
3intergovernmental risk management entity to accept the deposit
4of public funds except for risk management purposes.
5(Source: P.A. 102-285, eff. 8-6-21.)