93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB3001

 

Introduced 2/6/2004, by Patrick Welch, James A. DeLeo

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 330/2   from Ch. 127, par. 652
30 ILCS 330/5   from Ch. 127, par. 655
30 ILCS 500/1-10
50 ILCS 510/6.5 new
105 ILCS 230/5-5
105 ILCS 230/5-10
105 ILCS 230/5-15
105 ILCS 230/5-20
105 ILCS 230/5-25
105 ILCS 230/5-30
105 ILCS 230/5-40
105 ILCS 230/5-50
105 ILCS 230/5-60
105 ILCS 230/5-100
105 ILCS 230/5-45 rep.

    Amends the General Obligation Bond Act to increase bonding authorization for School Construction Bonds. Amends the School Construction Law. Makes changes concerning the authority of the Capital Development Board; alternative delivery methods, including district facilities plans; categorization of projects; and intergovernmental agreements. Amends other Acts relating to the Board's authority. Makes other changes. Effective on July 1, 2004.


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FISCAL NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3001 LRB093 14715 BDD 47120 b

1     AN ACT concerning school construction.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The General Obligation Bond Act is amended by
5 changing Sections 2 and 5 as follows:
 
6     (30 ILCS 330/2)  (from Ch. 127, par. 652)
7     Sec. 2. Authorization for Bonds. The State of Illinois is
8 authorized to issue, sell and provide for the retirement of
9 General Obligation Bonds of the State of Illinois for the
10 categories and specific purposes expressed in Sections 2
11 through 8 of this Act, in the total amount of $29,858,149,369
12 $27,658,149,369.
13     The bonds authorized in this Section 2 and in Section 16 of
14 this Act are herein called "Bonds".
15     Of the total amount of Bonds authorized in this Act, up to
16 $2,200,000,000 in aggregate original principal amount may be
17 issued and sold in accordance with the Baccalaureate Savings
18 Act in the form of General Obligation College Savings Bonds.
19     Of the total amount of Bonds authorized in this Act, up to
20 $300,000,000 in aggregate original principal amount may be
21 issued and sold in accordance with the Retirement Savings Act
22 in the form of General Obligation Retirement Savings Bonds.
23     Of the total amount of Bonds authorized in this Act, the
24 additional $10,000,000,000 authorized by this amendatory Act
25 of the 93rd General Assembly shall be used solely as provided
26 in Section 7.2.
27     The issuance and sale of Bonds pursuant to the General
28 Obligation Bond Act is an economical and efficient method of
29 financing the capital and general operating needs of the State.
30 This Act will permit the issuance of a multi-purpose General
31 Obligation Bond with uniform terms and features. This will not
32 only lower the cost of registration but also reduce the overall

 

 

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1 cost of issuing debt by improving the marketability of Illinois
2 General Obligation Bonds.
3 (Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02;
4 92-598, eff. 6-28-02; 93-2, eff. 4-7-03.)
 
5     (30 ILCS 330/5)  (from Ch. 127, par. 655)
6     Sec. 5. School Construction.
7     (a) The amount of $58,450,000 is authorized to make grants
8 to local school districts for the acquisition, development,
9 construction, reconstruction, rehabilitation, improvement,
10 financing, architectural planning and installation of capital
11 facilities, including but not limited to those required for
12 special education building projects provided for in Article 14
13 of The School Code, consisting of buildings, structures, and
14 durable equipment, and for the acquisition and improvement of
15 real property and interests in real property required, or
16 expected to be required, in connection therewith.
17     (b) $22,550,000, or so much thereof as may be necessary,
18 for grants to school districts for the making of principal and
19 interest payments, required to be made, on bonds issued by such
20 school districts after January 1, 1969, pursuant to any
21 indenture, ordinance, resolution, agreement or contract to
22 provide funds for the acquisition, development, construction,
23 reconstruction, rehabilitation, improvement, architectural
24 planning and installation of capital facilities consisting of
25 buildings, structures, durable equipment and land for
26 educational purposes or for lease payments required to be made
27 by a school district for principal and interest payments on
28 bonds issued by a Public Building Commission after January 1,
29 1969.
30     (c) $10,000,000 for grants to school districts for the
31 acquisition, development, construction, reconstruction,
32 rehabilitation, improvement, architectural planning and
33 installation of capital facilities consisting of buildings
34 structures, durable equipment and land for special education
35 building projects.

 

 

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1     (d) $9,000,000 for grants to school districts for the
2 reconstruction, rehabilitation, improvement, financing and
3 architectural planning of capital facilities, including
4 construction at another location to replace such capital
5 facilities, consisting of those public school buildings and
6 temporary school facilities which, prior to January 1, 1984,
7 were condemned by the regional superintendent under Section
8 3-14.22 of The School Code or by any State official having
9 jurisdiction over building safety.
10     (e) $5,250,000,000 $3,050,000,000 for grants to school
11 districts for school improvement projects authorized by the
12 School Construction Law. The bonds shall be sold in amounts not
13 to exceed the following schedule, except any bonds not sold
14 during one year shall be added to the bonds to be sold during
15 the remainder of the schedule:
16     First year.......................................$200,000,000
17     Second year......................................$450,000,000
18     Third year.......................................$500,000,000
19     Fourth year......................................$500,000,000
20     Fifth year.......................................$800,000,000
21     Sixth year and thereafter........................$600,000,000
22     Seventh year.....................................$550,000,000
23     Eighth year......................................$550,000,000
24     Ninth year.......................................$550,000,000
25     Tenth year and thereafter........................$550,000,000
26 (Source: P.A. 91-39, eff. 6-15-99; 92-598, eff. 6-28-02.)
 
27     Section 10. The Illinois Procurement Code is amended by
28 changing Section 1-10 as follows:
 
29     (30 ILCS 500/1-10)
30     Sec. 1-10. Application.
31     (a) This Code applies only to procurements for which
32 contractors were first solicited on or after July 1, 1998. This
33 Code shall not be construed to affect or impair any contract,
34 or any provision of a contract, entered into based on a

 

 

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1 solicitation prior to the implementation date of this Code as
2 described in Article 99, including but not limited to any
3 covenant entered into with respect to any revenue bonds or
4 similar instruments. All procurements for which contracts are
5 solicited between the effective date of Articles 50 and 99 and
6 July 1, 1998 shall be substantially in accordance with this
7 Code and its intent.
8     (b) This Code shall apply regardless of the source of the
9 funds with which the contracts are paid, including federal
10 assistance moneys. This Code shall not apply to:
11         (1) Contracts between the State and its political
12     subdivisions or other governments, or between State
13     governmental bodies except as specifically provided in
14     this Code.
15         (2) Grants, except for the filing requirements of
16     Section 20-80.
17         (3) Purchase of care.
18         (4) Hiring of an individual as employee and not as an
19     independent contractor, whether pursuant to an employment
20     code or policy or by contract directly with that
21     individual.
22         (5) Collective bargaining contracts.
23         (6) Purchase of real estate.
24         (7) Contracts necessary to prepare for anticipated
25     litigation, enforcement actions, or investigations,
26     provided that the chief legal counsel to the Governor shall
27     give his or her prior approval when the procuring agency is
28     one subject to the jurisdiction of the Governor, and
29     provided that the chief legal counsel of any other
30     procuring entity subject to this Code shall give his or her
31     prior approval when the procuring entity is not one subject
32     to the jurisdiction of the Governor.
33         (8) Contracts for services to Northern Illinois
34     University by a person, acting as an independent
35     contractor, who is qualified by education, experience, and
36     technical ability and is selected by negotiation for the

 

 

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1     purpose of providing non-credit educational service
2     activities or products by means of specialized programs
3     offered by the university.
4         (9) Procurement expenditures by the Illinois
5     Conservation Foundation when only private funds are used.
6         (10) Procurement by the Capital Development Board when
7     exercising general supervision under the School
8     Construction Law.
9 (Source: P.A. 91-627, eff. 8-19-99; 91-904, eff. 7-6-00;
10 92-797, eff. 8-15-02.)
 
11     Section 15. The Local Government Professional Services
12 Selection Act is amended by adding Section 6.5 as follows:
 
13     (50 ILCS 510/6.5 new)
14     Sec. 6.5. School Construction.
15     (a) The exceptions stated in this Act based on having "a
16 satisfactory relationship for services with one or more firms"
17 do not apply to projects under the School Construction Law
18 unless approved by the Executive Director of the Capital
19 Development Board.
20     (b) All procurement of architectural, engineering, and
21 land surveying services for projects that are funded in whole
22 or in part under the School Construction Law, including without
23 limitation small contracts and emergency services under
24 Section 8, shall be conducted by the Capital Development Board
25 on behalf of the school district unless the Executive Director
26 of the Capital Development Board grants a written waiver to the
27 school district with respect to a specific project.
 
28     Section 20. The School Construction Law is amended by
29 changing Sections 5-5, 5-10, 5-15, 5-20, 5-25, 5-30, 5-40,
30 5-50, 5-60, and 5-100 as follows:
 
31     (105 ILCS 230/5-5)
32     Sec. 5-5. Definitions. As used in this Article:

 

 

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1     "Approved school construction bonds" mean bonds that were
2 approved by referendum after January 1, 1996 but prior to
3 January 1, 1998 as provided in Sections 19-2 through 19-7 of
4 the School Code to provide funds for the acquisition,
5 development, construction, reconstruction, rehabilitation,
6 improvement, architectural planning, and installation of
7 capital facilities consisting of buildings, structures,
8 durable-equipment, and land for educational purposes.
9     "Grant index" means a figure for each school district equal
10 to one minus the ratio of the district's equalized assessed
11 valuation per pupil in average daily attendance to the
12 equalized assessed valuation per pupil in average daily
13 attendance of the district located at the 90th percentile for
14 all districts of the same category. For the purpose of
15 calculating the grant index, school districts are grouped into
16 2 categories, Category I and Category II. Category I consists
17 of elementary and unit school districts. The equalized assessed
18 valuation per pupil in average daily attendance of each school
19 district in Category I shall be computed using its grades
20 kindergarten through 8 average daily attendance figure. A unit
21 school district's Category I grant index shall be used for
22 projects or portions of projects constructed for elementary
23 school pupils. Category II consists of high school and unit
24 school districts. The equalized assessed valuation per pupil in
25 average daily attendance of each school district in Category II
26 shall be computed using its grades 9 through 12 average daily
27 attendance figure. A unit school district's Category II grant
28 index shall be used for projects or portions of projects
29 constructed for high school pupils. The changes made by Public
30 this amendatory Act 92-168 (effective July 26, 2001) of the
31 92nd General Assembly apply to all grants made on or after July
32 26, 2001 the effective date of this amendatory Act, provided
33 that for grants not yet made on July 26, 2001 the effective
34 date of this amendatory Act but made in fiscal year 2001 and
35 for grants made in fiscal year 2002, the grant index for a
36 school district shall be the greater of (i) the grant index as

 

 

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1 calculated under this Law on or after July 26, 2001 the
2 effective date of this amendatory Act or (ii) the grant index
3 as calculated under this Law before July 26, 2001 the effective
4 date of this amendatory Act. The grant index shall be no less
5 than 0.35 and no greater than 0.75 for each district; provided
6 that the grant index for districts whose equalized assessed
7 valuation per pupil in average daily attendance is at the 99th
8 percentile and above for all districts of the same type shall
9 be 0.00. Grant indexes shall be calculated by the Capital
10 Development Board. In making its calculations, the Capital
11 Development Board shall receive full cooperation and
12 assistance from the State Board of Education.
13     "School construction project" means the acquisition,
14 development, construction, reconstruction, rehabilitation,
15 improvement, architectural planning, and installation of
16 capital facilities consisting of buildings, structures,
17 durable equipment, and land for educational purposes.
18     "School maintenance project" means a project, other than a
19 school construction project, intended to provide for the
20 maintenance or upkeep of buildings or structures for
21 educational purposes, but does not include ongoing operational
22 costs.
23 (Source: P.A. 91-38, eff. 6-15-99; 92-168, eff. 7-26-01.)
 
24     (105 ILCS 230/5-10)
25     Sec. 5-10. Grant awards. The Capital Development Board is
26 authorized to make grants to school districts for school
27 construction projects with funds appropriated by the General
28 Assembly from the School Infrastructure Fund pursuant to the
29 provisions of this Article. The State Board of Education is
30 authorized to make grants to school districts for debt service
31 with funds appropriated by the General Assembly from the School
32 Infrastructure Fund pursuant to the provisions of this Article.
33 (Source: P.A. 90-548, eff. 1-1-98.)
 
34     (105 ILCS 230/5-15)

 

 

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1     Sec. 5-15. Grant entitlements. The Capital Development
2 State Board of Education is authorized to issue grant
3 entitlements for school construction projects. The Capital
4 Development Board and debt service and shall determine the
5 priority order for school construction project grants to be
6 made by the Capital Development Board. When issuing a grant
7 entitlement for a school construction project, the Capital
8 Development Board, as a part of that entitlement, shall
9 indicate the categorization of the project as provided in
10 Section 5-30 and shall certify to the district receiving the
11 entitlement the dollar amount of the school construction
12 project's cost that the district will be required to finance
13 with non-grant funds in order to qualify to receive a school
14 construction project grant under this Article from the Capital
15 Development Board.
16 (Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 
17     (105 ILCS 230/5-20)
18     Sec. 5-20. Grant application; district facilities plan.
19 School districts shall apply to the Capital Development State
20 Board of Education for school construction project grants and
21 debt service grants. Districts filing grant applications shall
22 submit to the Capital Development State Board a district
23 facilities plan that shall include, but not be limited to, an
24 assessment of present and future district facility needs as
25 required by present and anticipated educational programming,
26 the availability of local financial resources including
27 current revenues, fund balances, and unused bonding capacity,
28 the impact on the educational fund such as additional teachers
29 or other staff, a fiscal plan for meeting present and
30 anticipated debt service obligations, and a maintenance plan
31 and schedule that contain necessary assurances that new,
32 renovated, and existing facilities are being or will be
33 properly maintained. If a district that applies for a school
34 construction project grant has no unused bonding capacity or if
35 its unused bonding capacity may be less than the portion of the

 

 

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1 cost of the proposed school construction project that the
2 district would be required to finance with non-grant funds, the
3 application and facilities plan submitted by the district shall
4 set forth the estimated amount of the project's cost that the
5 district proposes to finance by the issuance of bonds under
6 subsection (n) of Section 19-1 of the School Code. The Capital
7 Development State Board of Education shall review and approve
8 district facilities plans prior to issuing grant entitlements.
9 Each district that receives a grant entitlement shall annually
10 update its district facilities plan and submit the revised plan
11 to the Capital Development State Board for approval.
12 (Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 
13     (105 ILCS 230/5-25)
14     Sec. 5-25. Eligibility and project standards.
15     (a) The Capital Development State Board of Education shall
16 establish eligibility standards for school construction
17 project grants and debt service grants. These standards shall
18 include minimum enrollment requirements for eligibility for
19 school construction project grants of 200 students for
20 elementary districts, 200 students for high school districts,
21 and 400 students for unit districts. The Capital Development
22 State Board of Education shall approve a district's eligibility
23 for a school construction project grant or a debt service grant
24 pursuant to the established standards.
25     (b) The Capital Development Board shall establish project
26 standards for all school construction project grants provided
27 pursuant to this Article. These standards shall include space
28 and capacity standards as well as the determination of
29 recognized project costs that shall be eligible for State
30 financial assistance and enrichment costs that shall not be
31 eligible for State financial assistance.
32     (c) The State Board of Education and the Capital
33 Development Board shall not establish standards that
34 disapprove or otherwise establish limitations that restrict
35 the eligibility of a school district with a population

 

 

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1 exceeding 500,000 for a school construction project grant based
2 on the fact that any or all of the school construction project
3 grant will be used to pay debt service or to make lease
4 payments, as authorized by subsection (b) of Section 5-35 of
5 this Law.
6 (Source: P.A. 90-548, eff. 1-1-98; 91-38, eff. 6-15-99.)
 
7     (105 ILCS 230/5-30)
8     Sec. 5-30. Categorization and prioritization Priority of
9 school construction projects. The Capital Development Board
10 State Board of Education shall develop standards for the
11 determination of priority needs concerning school construction
12 projects based upon approved district facilities plans. Such
13 standards shall call for prioritization based on the degree of
14 need. and Project categories are as follows type in the
15 following order:
16     (1) Replacement or reconstruction of school buildings
17 destroyed or damaged by flood, tornado, fire, earthquake, or
18 other disasters, either man-made or produced by nature;
19     (2) State program priority projects including but not
20 limited to construction of classrooms for pre-kindergarten and
21 kindergarten; and construction of shared use facilities that
22 provide for school districts' joint use for recreational,
23 clinical, library, pre-school, or before or after school
24 programs with other governmental units including State
25 institutions of higher learning;
26     (3) (2) Projects designed to alleviate a shortage of
27 classrooms due to population growth or to replace aging school
28 buildings;
29     (4) (3) Projects resulting from interdistrict
30 reorganization of school districts contingent on local
31 referenda;
32     (5) (4) Replacement, rehabilitation, or reconstruction of
33 school facilities determined to be severe and continuing health
34 or life safety hazards; and
35     (6) (5) Alterations necessary to provide accessibility for

 

 

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1 qualified individuals with disabilities; and
2     (6) Other unique solutions to facility needs.
3 (Source: P.A. 90-548, eff. 1-1-98.)
 
4     (105 ILCS 230/5-40)
5     Sec. 5-40. Supervision; inter-governmental agreements of
6 school construction projects.
7     (a) The Capital Development Board shall exercise general
8 supervision over school construction projects financed
9 pursuant to this Article. General supervision includes the
10 procurement and administration of design and construction
11 contracts. In exercising general supervision, the Board (i) may
12 use alternative delivery methods as provided by law and (ii)
13 may exercise all powers relating to construction that are
14 granted to school districts under the School Code. The
15 workforce hiring goals adopted by the Board under the Business
16 Enterprise for Minorities, Females, and Persons with
17 Disabilities Act apply to the Board when acting under this Act.
18     (b) In anticipation of an award of a grant under this
19 Article, the Capital Development Board may provide advice and
20 assistance to a school district within the limits of the
21 Board's functions of general supervision. The purpose of
22 providing advice and assistance is to ensure that the project
23 will qualify for a grant should grant amounts become available,
24 particularly if the school district is providing its own
25 funding to commence or complete the project.
26     (c) Each school district that is awarded a grant under this
27 Article must enter into an inter-governmental agreement with
28 the Capital Development Board. The agreement shall set forth
29 the terms and conditions of the grant and the responsibilities
30 of the Board and the district. In addition, the agreement may
31 provide (i) that the school district shall perform some of the
32 general supervisory functions, with the approval of the
33 Executive Director of the Capital Development Board, (ii) that
34 the Capital Development Board may charge a grant or contract
35 administration fee not to exceed 1% of the contract amount, and

 

 

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1 (iii) that, if the school district has received the advice and
2 assistance of the Capital Development Board under subsection
3 (b), then with the approval of the Executive Director of the
4 Capital Development Board, grant funds may be used to reimburse
5 the school district for project amounts expended out of the
6 district's own funds.
7 (Source: P.A. 90-548, eff. 1-1-98.)
 
8     (105 ILCS 230/5-50)
9     Sec. 5-50. Referendum requirements. After the Capital
10 Development State Board of Education has approved all or part
11 of a district's application and issued a grant entitlement for
12 a school construction project grant, the district shall submit
13 the project or the financing of the project to a referendum
14 when such referendum is required by law.
15 (Source: P.A. 90-548, eff. 1-1-98.)
 
16     (105 ILCS 230/5-60)
17     Sec. 5-60. School capital needs assessment. The State Board
18 of Education and the Capital Development Board shall file with
19 the General Assembly a comprehensive assessment report of the
20 capital needs of all school districts in this State before
21 January 1, 2005 and every 2 years thereafter. This assessment
22 shall include without limitation an analysis of the 6
23 categories of capital needs prioritized in Section 5-30 of this
24 Law.
25 (Source: P.A. 93-489, eff. 8-8-03.)
 
26     (105 ILCS 230/5-100)
27     Sec. 5-100. School maintenance project grants.
28     (a) The Capital Development State Board of Education is
29 authorized to make grants to school districts, without regard
30 to enrollment, for school maintenance projects. These grants
31 shall be paid out of moneys appropriated for that purpose from
32 the School Infrastructure Fund. No grant under this Section for
33 one fiscal year shall exceed $50,000, but a school district may

 

 

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1 receive grants for more than one project during one fiscal
2 year. A school district must provide local matching funds in an
3 amount equal to the amount of the grant under this Section. A
4 school district has no entitlement to a grant under this
5 Section.
6     (b) The Capital Development State Board of Education shall
7 adopt rules to implement this Section. These rules need not be
8 the same as the rules for school construction project grants or
9 debt service grants.
10     The rules may specify: (1) the manner of applying for
11 grants; (2) project eligibility requirements; (3) restrictions
12 on the use of grant moneys; (4) the manner in which school
13 districts must account for the use of grant moneys; and (5) any
14 other provision that the Capital Development State Board
15 determines to be necessary or useful for the administration of
16 this Section.
17     The rules shall specify the methods and standards to be
18 used by the Captial Development State Board to prioritize
19 applications. School maintenance projects shall be prioritized
20 in the following order:
21         (i) emergency projects;
22         (ii) health/life safety projects;
23         (iii) State Program priority projects;
24         (iv) permanent improvement projects; and
25         (v) other projects.
26     (c) In each school year in which school maintenance project
27 grants are awarded, 20% of the total amount awarded shall be
28 awarded to a school district with a population of more than
29 500,000, provided that the school district complies with the
30 requirements of this Section and the rules adopted under this
31 Section.
32 (Source: P.A. 91-38, eff. 6-15-99.)
 
33     (105 ILCS 230/5-45 rep.)
34     Section 30. The School Construction Law is amended by
35 repealing Section 5-45.
 

 

 

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1     Section 99. Effective date. This Act takes effect July 1,
2 2004.