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Public Act 096-0015
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| HB1200 Enrolled |
LRB096 09046 JAM 19186 b |
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the State |
University Certificates of Participation Act.
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Section 5. Definitions. As used in this Act: |
"Board" means the Board of Trustees of a State University. |
"Commission" means the Commission on Government |
Forecasting and Accountability. |
"State University" means the University of Illinois, |
Southern Illinois University, Chicago State University, |
Eastern Illinois University, Governors State University, |
Illinois State University, Northeastern Illinois University, |
Northern Illinois University, and Western Illinois University |
and any of their successors.
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Section 10. Certificates of participation. |
(a) The power of the Board of any State University to enter |
into contracts includes the power to enter into financing |
agreements in connection with the financing of capital |
improvements (including technology or other related |
improvements) by selling certificates of participation in the |
installment payments made under such financing agreements. |
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Such financing agreements may be entered into for any period of |
time less than or equal to 30 years, but not to exceed the |
useful life of the capital improvement. Nothing in this Act |
authorizes the Board of any State University to incur "State |
debt" as that term is defined in subsection (a) of Section 9 of |
Article IX of the Illinois Constitution of 1970. This |
subsection (a) is declaratory of existing law. |
(b) Upon determination by the Board of a State University |
to undertake a transaction for the sale of certificates of |
participation and enter into related financing agreements in |
connection with the financing of capital improvements, the |
Board shall adopt a resolution or resolutions describing in a |
general way the contemplated facilities or a combination |
thereof designated as the project, the estimated cost thereof, |
and any additional relevant information.
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Section 15. Accountability and review of proposed |
certificate issuance. Before issuance of any certificate of |
participation, a State University shall appear before the |
Commission and present the details of the proposal. This |
presentation shall include such information as the Commission |
may request in relation to the proposed certificate of |
participation issuance. This information shall include, but is |
not limited to, the amount being financed, the nature of the |
project being financed, the proposed funding stream to pay for |
the certificate issuance, the current outstanding indebtedness |
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of the State University, and the status of all currently issued |
certificates of participation.
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Upon receipt of a request by a State University for a |
certificate of participation presentation, the Commission |
shall hold a public hearing and, upon adoption by a vote of the |
majority of appointed members, issue a record of findings in |
regards to the issuance of the certificate within 60 days after |
the request. |
As part of the Commission's considerations and findings, |
the Commission shall consider the effect the issuance of a |
certificate of participation shall have on the State |
University's annual debt service and overall fiscal condition. |
Within the Commission's findings shall be a statement in |
which the Commission makes a recommendation to the State |
University as to proceeding with the certificate issuance. The |
recommendation shall be either (i) "favorably recommended", |
(ii) "recommended with concerns", or (iii) "non-support of |
issuance".
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The Commission shall report the findings within 15 days |
after the hearing to all of the following: |
(1) The Speaker of the House of Representatives. |
(2) The Minority Leader of the House of |
Representatives. |
(3) The President of the Senate. |
(4) The Minority Leader of the Senate. |
(5) The Governor's Office of Management and Budget. |
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(6) The President of the State University that had |
requested the certificate presentation. |
Upon a finding of "non-support of issuance", a State |
University may not proceed with the issuance of the certificate |
involved in the finding without the approval of the General |
Assembly through the adoption of a joint resolution.
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Section 20. Annual reporting. Prior to December 31 of each |
year, each State University shall file with the Commission a |
report stating the status of all outstanding certificates of |
participation the State University has issued and a copy of the |
annual budget as approved by the Board.
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Section 25. Required statement on certificate of |
participation documents. Each issuance of a certificate of |
participation shall include within the appropriate documents |
related to its execution the following statement, which sets |
forth required limitations in relation to the certificate:
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THE BOARD OF TRUSTEES' OBLIGATION TO MAKE INSTALLMENT |
PAYMENTS DOES NOT CONSTITUTE A DEBT OF THE BOARD OR THE STATE |
OF ILLINOIS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR |
STATUTORY LIMITATION. THE INSTALLMENT PAYMENTS REQUIRED UNDER |
CERTIFICATES OF PARTICIPATION INCURRED BY THE UNIVERSITY ARE |
NOT SECURED BY THE FULL FAITH AND CREDIT OF THE STATE AND ARE |
NOT REQUIRED TO BE REPAID AND MAY NOT BE REPAID, DIRECTLY OR |
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INDIRECTLY, FROM TAX REVENUE.
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Section 30. Debt limit. The maximum annual debt service for |
a State University's total certificate of participation |
obligation must not exceed the following: |
(1) For the University of Illinois, $100,000,000. |
(2) For Southern Illinois University, $20,000,000. |
(3) For Northern Illinois University, $20,000,000. |
(4) For Illinois State University, $10,000,000. |
(5) For Western Illinois University, $10,000,000. |
(6) For Eastern Illinois University, $10,000,000. |
(7) For Northeastern Illinois University, $5,000,000. |
(8) For Chicago State University, $5,000,000. |
(9) For Governors State University, $5,000,000.
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Section 90. Expiration of Act. This Act applies until |
December 31, 2014. However, the refunding of certificates of |
participation issued prior to December 31, 2014 in accordance |
with the Act is permitted.
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Section 95. The Statute on Statutes is amended by changing |
Section 8 as follows:
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(5 ILCS 70/8) (from Ch. 1, par. 1107)
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Sec. 8. Omnibus Bond Acts.
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(a) A citation to the Omnibus Bond Acts is a citation to |
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all of the
following Acts, collectively, as amended from time |
to time: the Bond
Authorization Act, the Registered Bond Act, |
the Municipal Bond Reform Act,
the Local Government Debt Reform |
Act, subsection (a) of Section 1-7 of the
Property Tax |
Extension Limitation Act,
subsection (a) of Section 18-190 of |
the Property Tax Code,
the Uniform Facsimile Signature of |
Public Officials Act, the Local Government
Bond Validity Act, |
the Illinois Finance Authority Act, the Public Funds
Investment |
Act, the Local
Government Credit Enhancement Act, the Local |
Government Defeasance of Debt
Law, the Intergovernmental |
Cooperation Act, the Local
Government Financial Planning and |
Supervision Act, the Special Assessment
Supplemental Bond and |
Procedure Act, Section 12-5 of the Election Code, the State |
University Certificates of Participation Act, and
any similar |
Act granting additional
omnibus bond
powers to governmental |
entities generally, whether enacted before, on, or
after the |
effective date of this amendatory Act of 1989.
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(b) The General Assembly recognizes that the proliferation |
of governmental
entities has resulted in the enactment of |
hundreds of statutory provisions
relating to the borrowing and |
other powers of governmental entities. The
General Assembly |
addresses and has addressed problems common to all such
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governmental entities so that they have equal access to the |
municipal bond
market. It has been, and will continue to be, |
the intention of the General
Assembly to enact legislation |
applicable to governmental entities in an
omnibus fashion, as |
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has been done in the provisions of the Omnibus Bond Acts.
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(c) It is and always has been the intention of the General |
Assembly that
the Omnibus Bond Acts are and always have been |
supplementary grants of
power, cumulative in nature and in |
addition to any power or authority
granted in any other laws of |
the State. The Omnibus Bond Acts are
supplementary grants of |
power when applied in connection with any similar
grant of |
power or limitation contained in any other law of the State,
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whether or not the other law is enacted or amended after an |
Omnibus Bond
Act or appears to be more restrictive than an |
Omnibus Bond Act, unless the
General Assembly expressly |
declares in such other law that a specifically
named Omnibus |
Bond Act does not apply.
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(d) All instruments providing for the payment of money |
executed
by or on behalf of any governmental entity organized |
by or under
the laws of this State, including without |
limitation the State, to carry
out a public governmental or |
proprietary function, acting through its
corporate |
authorities, or which any governmental entity has assumed or
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agreed to pay, which were:
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(1) issued or authorized to be issued by proceedings |
adopted by such
corporate authorities before the effective |
date of this amendatory Act of 1989;
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(2) issued or authorized to be issued in accordance |
with the procedures
set forth in or pursuant to any |
authorization contained in any of the
Omnibus Bond Acts; |
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and
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(3) issued or authorized to be issued for any purpose |
authorized by the
laws of this State,
are valid and legally |
binding obligations of the governmental entity
issuing |
such instruments, payable in accordance with their terms.
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(Source: P.A. 93-205, eff. 1-1-04.)
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Section 97. The Illinois Procurement Code is amended by |
changing Sections 20-60 and 40-25 as follows:
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(30 ILCS 500/20-60)
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Sec. 20-60. Duration of contracts.
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(a) Maximum duration. A contract, other than a contract |
entered into pursuant to the State University Certificates of |
Participation Act, may be entered into for
any period of time |
deemed
to be in the best interests of the State but not
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exceeding 10 years inclusive, beginning January 1, 2010, of |
proposed contract renewals. The length of
a lease for real |
property or capital improvements shall be in
accordance with |
the provisions of
Section 40-25. A contract for bond or |
mortgage insurance awarded by the Illinois Housing Development |
Authority, however, may be entered into for any period of time |
less than or equal to the maximum period of time that the |
subject bond or mortgage may remain outstanding.
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(b) Subject to appropriation. All contracts made or entered
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into shall recite that they are
subject to termination and |
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cancellation in any year for which the
General Assembly fails |
to make
an appropriation to make payments under the terms of |
the contract.
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(Source: P.A. 95-344, eff. 8-21-07.)
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(30 ILCS 500/40-25)
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Sec. 40-25. Length of leases.
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(a) Maximum term. Leases shall be for a term not to exceed
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10 years inclusive, beginning January, 1, 2010, of proposed |
contract renewals and shall include
a termination option in |
favor of the State after 5 years.
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(b) Renewal. Leases may include a renewal option. An
option |
to renew may be
exercised only when a State purchasing officer |
determines in
writing that renewal is in the best
interest of |
the State and notice of the exercise of the option is published |
in
the appropriate volume of the Procurement Bulletin at least |
60 days prior to
the exercise of the option.
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(c) Subject to appropriation. All leases shall recite that
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they are subject to termination
and cancellation in any year |
for which the General Assembly fails
to make an appropriation |
to
make payments under the terms of the lease.
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(d) Holdover. Beginning January 1, 2010, no lease may |
continue on a month-to-month or other holdover basis for a |
total of more than 6 months. Beginning July 1, 2010, the |
Comptroller shall withhold payment of leases beyond this |
holdover period. |