(30 ILCS 105/6a-1b)
Sec. 6a-1b.
(1) Beginning on the effective date of this amendatory Act of
1996, the following items of income received by
Illinois State University for general operational and educational purposes
shall be
retained by the University in its own treasury and credited to an account
known
as the University Income Fund that it shall establish in its treasury for
purposes of this paragraph: (a) tuition and laboratory fees not
pledged to discharge obligations arising out of the issuance of revenue
bonds, library fees, and all interest which may be earned thereon;
and (b) excess income from auxiliary enterprises and
activities as provided in paragraph (2) of this Section, and all other
income arising out of any activity or purpose not specified in paragraph
(2), (3), (4) or (5) of this Section upon
receipt of the same without any deduction whatever.
Within 10 days after the effective date of this amendatory Act of 1996, all
moneys then held in the Illinois State University Income Fund established in
the State Treasury that have been covered and paid into that fund by or on
behalf of that University shall be repaid to the University upon the warrant of
the State Comptroller, directed to the State Treasurer as an order to pay the
sum required to be repaid under this paragraph and shown as due on the warrant.
The University shall deposit the amount so repaid to it in a university bank
account within the time period established for like amounts in Section 2 of the
State Officers and Employees Money Disposition Act, to be credited to the
University Income Fund established by the University in its own treasury for
purposes of this paragraph. All moneys from time to time held in the
University Income Fund in the treasury of the University shall be used by the
University, pursuant to the order and direction of the Board of Trustees of the
University, for the support and improvement of the University, except for
amounts disbursed from that University Income Fund for refunds to students for
whom duplicate payment has been made and to students who have withdrawn after
registration and who are entitled to such refunds.
(2) The following items of income shall be retained by the
University in its own treasury: endowment funds, gifts, trust funds, and
Federal aid; funds received in connection with contracts with
governmental, public, or private agencies or persons, for research or
services including funds which are paid as reimbursement to the
University; funds received in connection with reserves authorized by
Section 20-60 of the Illinois State University Law;
funds received in connection with its operation of
research and high technology parks and with the retention, receipt,
assignment, license, sale or transfer of interests in, rights to, or income
from discoveries, inventions, patents, or copyrightable works; funds retained
by the University under the authority of
paragraph (3), (4) or (5) of this Section; and funds received from the
operation of student
or staff residence facilities, student and staff medical and health
programs, Union buildings, bookstores, farms, stores, and other
auxiliary enterprises or activities which are self-supporting in whole
or in part. Any income derived from such auxiliary enterprises or
activities which is not necessary to their support, maintenance, or
development shall not, however, be applied to any general operational or
educational purposes but shall be retained by the University in its own
treasury and credited to the University Income Fund that it shall establish in
its treasury as
provided in paragraph (1) of this Section.
(3) The Board of Trustees of Illinois State University
may retain in its
treasury any funds derived from rentals, service charges and laboratory and
building service charges or other sources, assessed or obtained for or
arising out of the operation of any building or buildings or structure or
structures and pledged to discharge obligations created in order to
complete or operate such building or structure, or for the payment of
revenue bonds issued for such University by the Teachers College Board, the
Board of Governors of State Colleges and Universities, the Board of Regents,
or the Board of Trustees of Illinois State University, such funds
to be disbursed from
time to time pursuant to the order and direction of the Board of Trustees
of Northern Illinois University,
and in accordance with any contracts, pledges, trusts or
agreements heretofore made with respect thereto by the Teachers College Board,
the Board of Governors of State Colleges and Universities or the Board of
Regents, or hereafter made by the Board of Trustees of Illinois State
University.
(4) The Board of Trustees of Illinois State University may also retain in
its treasury, out of student fees and tuition, such sums annually as the
Board determines are necessary to supplement revenue derived from any
building or buildings constructed or acquired on or after the effective
date of this amendatory Act of 1995, or to
supplement revenues derived from any building or buildings having bonds
outstanding thereon which bonds have heretofore been issued for the University
by the Teachers College Board, the Board of Governors of State Colleges and
Universities or the Board of Regents and which bonds are refunded under the
provisions of the Act under which they were issued or under the provisions
of any other law of this State authorizing the refunding of such bonds,
and may pledge or by resolution may make a supplementary
allocation of the funds so retained out of students' fees and tuition for
the retirement of such bonds as may be issued under any such Act or law. Such
funds as
are so pledged shall annually be credited to the account to which the
pledge applies. Such funds as are supplementarily allocated by Board
resolution subsequent to the resolution creating the bonds shall be
credited in accordance with the terms of the resolution making such
supplementary allocation to the account to which the allocation applies.
The Board may authorize such supplementation only after a determination by
it that the maximum revenues which may reasonably and economically be
derived from the operation of a building proposed to be constructed or
acquired under the Act under which the bonds therefor are issued will be
insufficient to meet the costs
of operation and maintenance and to pay the principal of and interest on
bonds so issued for such building, or after a determination by it that the
maximum revenues which may reasonably and economically be derived from the
operation of a building already constructed or acquired under the Act under
which the bonds therefor were issued are
or will be insufficient to meet the costs of operation and maintenance and
to pay the principal of and interest on bonds issued for such building. In
no event shall the supplementation from University income be in excess of
an amount which, when added to the revenues to be derived from the
operation of the building or buildings, will be sufficient to meet the
annual debt service requirements on the bonds issued in respect to such
building or buildings, the annual cost of maintenance or operation of such
building or buildings, and to provide for such reserves, accounts or
covenants which the resolution authorizing the issuing of such bonds may
require.
(5) The Board of Trustees of Illinois State University may also retain
in its treasury (a) all moneys received from the sale of all bonds issued
under the Illinois State University Revenue Bond Law,
(b) all fees,
rentals and other charges from students, staff members and others using or
being served by, or having the right to use or the right to be served by,
or to operate any project acquired under the Illinois State University Revenue
Bond Law, (c) all tuition,
registration, matriculation, health, hospital, medical, laboratory,
admission, student activities, student services, and all other fees
collected from students matriculated, registered or otherwise enrolled at
and attending the University pledged under the terms of any resolution
authorizing bonds, or authorizing a supplemental allocation of fees for
debt service of bonds theretofore issued pursuant to the Illinois State
University Revenue Bond Law, and (d)
all rentals from any facility or building acquired under the Illinois State
University Revenue Bond Law and
leased to the United States of America.
(6) Whenever funds retained by the University in its own treasury as
provided in this Section are
deposited with a bank or savings and loan association and the amount of the
deposit exceeds the amount of federal deposit insurance coverage, a bond or
pledged securities shall be obtained.
Only the types of securities which the State Treasurer may, in his
discretion, accept for amounts not insured by the Federal Deposit Insurance
Corporation or the Federal Savings and Loan Insurance Corporation under
Section 11 of the Deposit of State Moneys Act may be accepted as pledged
securities.
The market value of the bond or
pledged securities shall at all times be equal to or greater than the
uninsured portion of the deposit.
(7) The Auditor General shall audit or cause to be audited all items
of income referred to in this Section and all other income and expenditures
of the University.
(Source: P.A. 89-4, eff. 1-1-96; 89-602, eff. 8-2-96.)
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