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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the State | ||||||
5 | University Certificates of Participation Act. | ||||||
6 | Section 5. Definitions. As used in this Act: | ||||||
7 | "Board" means the Board of Trustees of a State University. | ||||||
8 | "Commission" means the Commission on Government | ||||||
9 | Forecasting and Accountability. | ||||||
10 | "State University" means the University of Illinois, | ||||||
11 | Southern Illinois University, Chicago State University, | ||||||
12 | Eastern Illinois University, Governors State University, | ||||||
13 | Illinois State University, Northeastern Illinois University, | ||||||
14 | Northern Illinois University, and Western Illinois University | ||||||
15 | and any of their successors.
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16 | Section 10. Certificates of participation. | ||||||
17 | (a) The power of the Board of any State University to enter | ||||||
18 | into contracts includes the power to enter into financing | ||||||
19 | agreements in connection with the financing of capital | ||||||
20 | improvements (including technology or other related | ||||||
21 | improvements) by selling certificates of participation in the | ||||||
22 | installment payments made under such financing agreements. |
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1 | Such financing agreements may be entered into for any period of | ||||||
2 | time less than or equal to 30 years, but not to exceed the | ||||||
3 | useful life of the capital improvement. Nothing in this Act | ||||||
4 | authorizes the Board of any State University to incur "State | ||||||
5 | debt" as that term is defined in subsection (a) of Section 9 of | ||||||
6 | Article IX of the Illinois Constitution of 1970. This | ||||||
7 | subsection (a) is declaratory of existing law. | ||||||
8 | (b) Upon determination by the Board of a State University | ||||||
9 | to undertake a transaction for the sale of certificates of | ||||||
10 | participation and enter into related financing agreements in | ||||||
11 | connection with the financing of capital improvements, the | ||||||
12 | Board shall adopt a resolution or resolutions describing in a | ||||||
13 | general way the contemplated facilities or a combination | ||||||
14 | thereof designated as the project, the estimated cost thereof, | ||||||
15 | and any additional relevant information.
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16 | Section 15. Accountability and review of proposed | ||||||
17 | certificate issuance. Before issuance of any certificate of | ||||||
18 | participation, a State University shall appear before the | ||||||
19 | Commission and present the details of the proposal. This | ||||||
20 | presentation shall include such information as the Commission | ||||||
21 | may request in relation to the proposed certificate of | ||||||
22 | participation issuance. This information shall include, but is | ||||||
23 | not limited to, the amount being financed, the nature of the | ||||||
24 | project being financed, the proposed funding stream to pay for | ||||||
25 | the certificate issuance, the current outstanding indebtedness |
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1 | of the State University, and the status of all currently issued | ||||||
2 | certificates of participation.
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3 | Upon receipt of a request by a State University for a | ||||||
4 | certificate of participation presentation, the Commission | ||||||
5 | shall hold a public hearing and, upon adoption by a vote of the | ||||||
6 | majority of appointed members, issue a record of findings in | ||||||
7 | regards to the issuance of the certificate within 60 days after | ||||||
8 | the request. | ||||||
9 | As part of the Commission's considerations and findings, | ||||||
10 | the Commission shall consider the effect the issuance of a | ||||||
11 | certificate of participation shall have on the State | ||||||
12 | University's annual debt service and overall fiscal condition. | ||||||
13 | Within the Commission's findings shall be a statement in | ||||||
14 | which the Commission makes a recommendation to the State | ||||||
15 | University as to proceeding with the certificate issuance. The | ||||||
16 | recommendation shall be either (i) "favorably recommended", | ||||||
17 | (ii) "recommended with concerns", or (iii) "non-support of | ||||||
18 | issuance".
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19 | The Commission shall report the findings within 15 days | ||||||
20 | after the hearing to all of the following: | ||||||
21 | (1) The Speaker of the House of Representatives. | ||||||
22 | (2) The Minority Leader of the House of | ||||||
23 | Representatives. | ||||||
24 | (3) The President of the Senate. | ||||||
25 | (4) The Minority Leader of the Senate. | ||||||
26 | (5) The Governor's Office of Management and Budget. |
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1 | (6) The President of the State University that had | ||||||
2 | requested the certificate presentation. | ||||||
3 | Upon a finding of "non-support of issuance", a State | ||||||
4 | University may not proceed with the issuance of the certificate | ||||||
5 | involved in the finding without the approval of the General | ||||||
6 | Assembly through the adoption of a joint resolution. | ||||||
7 | Section 20. Annual reporting. Prior to December 31 of each | ||||||
8 | year, each State University shall file with the Commission a | ||||||
9 | report stating the status of all outstanding certificates of | ||||||
10 | participation the State University has issued and a copy of the | ||||||
11 | annual budget as approved by the Board. | ||||||
12 | Section 25. Required statement on certificate of | ||||||
13 | participation documents. Each issuance of a certificate of | ||||||
14 | participation shall include within the appropriate documents | ||||||
15 | related to its execution the following statement, which sets | ||||||
16 | forth required limitations in relation to the certificate:
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17 | THE BOARD OF TRUSTEES' OBLIGATION TO MAKE INSTALLMENT | ||||||
18 | PAYMENTS DOES NOT CONSTITUTE A DEBT OF THE BOARD OR THE STATE | ||||||
19 | OF ILLINOIS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR | ||||||
20 | STATUTORY LIMITATION. THE INSTALLMENT PAYMENTS REQUIRED UNDER | ||||||
21 | CERTIFICATES OF PARTICIPATION INCURRED BY THE UNIVERSITY ARE | ||||||
22 | NOT SECURED BY THE FULL FAITH AND CREDIT OF THE STATE AND ARE | ||||||
23 | NOT REQUIRED TO BE REPAID AND MAY NOT BE REPAID, DIRECTLY OR |
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1 | INDIRECTLY, FROM TAX REVENUE. | ||||||
2 | Section 30. Debt limit. The maximum annual debt service for | ||||||
3 | a State University's total certificate of participation | ||||||
4 | obligation must not exceed the following: | ||||||
5 | (1) For the University of Illinois, $100,000,000. | ||||||
6 | (2) For Southern Illinois University, $20,000,000. | ||||||
7 | (3) For Northern Illinois University, $20,000,000. | ||||||
8 | (4) For Illinois State University, $10,000,000. | ||||||
9 | (5) For Western Illinois University, $10,000,000. | ||||||
10 | (6) For Eastern Illinois University, $10,000,000. | ||||||
11 | (7) For Northeastern Illinois University, $5,000,000. | ||||||
12 | (8) For Chicago State University, $5,000,000. | ||||||
13 | (9) For Governors State University, $5,000,000. | ||||||
14 | Section 90. Expiration of Act. This Act applies until | ||||||
15 | December 31, 2014. However, the refunding of certificates of | ||||||
16 | participation issued prior to December 31, 2014 in accordance | ||||||
17 | with the Act is permitted. | ||||||
18 | Section 95. The Statute on Statutes is amended by changing | ||||||
19 | Section 8 as follows:
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20 | (5 ILCS 70/8) (from Ch. 1, par. 1107)
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21 | Sec. 8. Omnibus Bond Acts.
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22 | (a) A citation to the Omnibus Bond Acts is a citation to |
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1 | all of the
following Acts, collectively, as amended from time | ||||||
2 | to time: the Bond
Authorization Act, the Registered Bond Act, | ||||||
3 | the Municipal Bond Reform Act,
the Local Government Debt Reform | ||||||
4 | Act, subsection (a) of Section 1-7 of the
Property Tax | ||||||
5 | Extension Limitation Act,
subsection (a) of Section 18-190 of | ||||||
6 | the Property Tax Code,
the Uniform Facsimile Signature of | ||||||
7 | Public Officials Act, the Local Government
Bond Validity Act, | ||||||
8 | the Illinois Finance Authority Act, the Public Funds
Investment | ||||||
9 | Act, the Local
Government Credit Enhancement Act, the Local | ||||||
10 | Government Defeasance of Debt
Law, the Intergovernmental | ||||||
11 | Cooperation Act, the Local
Government Financial Planning and | ||||||
12 | Supervision Act, the Special Assessment
Supplemental Bond and | ||||||
13 | Procedure Act, Section 12-5 of the Election Code, the State | ||||||
14 | University Certificates of Participation Act, and
any similar | ||||||
15 | Act granting additional
omnibus bond
powers to governmental | ||||||
16 | entities generally, whether enacted before, on, or
after the | ||||||
17 | effective date of this amendatory Act of 1989.
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18 | (b) The General Assembly recognizes that the proliferation | ||||||
19 | of governmental
entities has resulted in the enactment of | ||||||
20 | hundreds of statutory provisions
relating to the borrowing and | ||||||
21 | other powers of governmental entities. The
General Assembly | ||||||
22 | addresses and has addressed problems common to all such
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23 | governmental entities so that they have equal access to the | ||||||
24 | municipal bond
market. It has been, and will continue to be, | ||||||
25 | the intention of the General
Assembly to enact legislation | ||||||
26 | applicable to governmental entities in an
omnibus fashion, as |
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1 | has been done in the provisions of the Omnibus Bond Acts.
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2 | (c) It is and always has been the intention of the General | ||||||
3 | Assembly that
the Omnibus Bond Acts are and always have been | ||||||
4 | supplementary grants of
power, cumulative in nature and in | ||||||
5 | addition to any power or authority
granted in any other laws of | ||||||
6 | the State. The Omnibus Bond Acts are
supplementary grants of | ||||||
7 | power when applied in connection with any similar
grant of | ||||||
8 | power or limitation contained in any other law of the State,
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9 | whether or not the other law is enacted or amended after an | ||||||
10 | Omnibus Bond
Act or appears to be more restrictive than an | ||||||
11 | Omnibus Bond Act, unless the
General Assembly expressly | ||||||
12 | declares in such other law that a specifically
named Omnibus | ||||||
13 | Bond Act does not apply.
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14 | (d) All instruments providing for the payment of money | ||||||
15 | executed
by or on behalf of any governmental entity organized | ||||||
16 | by or under
the laws of this State, including without | ||||||
17 | limitation the State, to carry
out a public governmental or | ||||||
18 | proprietary function, acting through its
corporate | ||||||
19 | authorities, or which any governmental entity has assumed or
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20 | agreed to pay, which were:
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21 | (1) issued or authorized to be issued by proceedings | ||||||
22 | adopted by such
corporate authorities before the effective | ||||||
23 | date of this amendatory Act of 1989;
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24 | (2) issued or authorized to be issued in accordance | ||||||
25 | with the procedures
set forth in or pursuant to any | ||||||
26 | authorization contained in any of the
Omnibus Bond Acts; |
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1 | and
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2 | (3) issued or authorized to be issued for any purpose | ||||||
3 | authorized by the
laws of this State,
are valid and legally | ||||||
4 | binding obligations of the governmental entity
issuing | ||||||
5 | such instruments, payable in accordance with their terms.
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6 | (Source: P.A. 93-205, eff. 1-1-04.)
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7 | Section 97. The Illinois Procurement Code is amended by | ||||||
8 | changing Sections 20-60 and 40-25 as follows:
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9 | (30 ILCS 500/20-60)
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10 | Sec. 20-60. Duration of contracts.
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11 | (a) Maximum duration. A contract , other than a contract | ||||||
12 | entered into pursuant to the State University Certificates of | ||||||
13 | Participation Act, may be entered into for
any period of time | ||||||
14 | deemed
to be in the best interests of the State but not
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15 | exceeding 10 years inclusive, beginning January 1, 2010, of | ||||||
16 | proposed contract renewals . The length of
a lease for real | ||||||
17 | property or capital improvements shall be in
accordance with | ||||||
18 | the provisions of
Section 40-25. A contract for bond or | ||||||
19 | mortgage insurance awarded by the Illinois Housing Development | ||||||
20 | Authority, however, may be entered into for any period of time | ||||||
21 | less than or equal to the maximum period of time that the | ||||||
22 | subject bond or mortgage may remain outstanding.
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23 | (b) Subject to appropriation. All contracts made or entered
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24 | into shall recite that they are
subject to termination and |
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1 | cancellation in any year for which the
General Assembly fails | ||||||
2 | to make
an appropriation to make payments under the terms of | ||||||
3 | the contract.
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4 | (Source: P.A. 95-344, eff. 8-21-07.)
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5 | (30 ILCS 500/40-25)
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6 | Sec. 40-25. Length of leases.
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7 | (a) Maximum term. Leases shall be for a term not to exceed
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8 | 10 years inclusive, beginning January, 1, 2010, of proposed | ||||||
9 | contract renewals and shall include
a termination option in | ||||||
10 | favor of the State after 5 years.
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11 | (b) Renewal. Leases may include a renewal option. An
option | ||||||
12 | to renew may be
exercised only when a State purchasing officer | ||||||
13 | determines in
writing that renewal is in the best
interest of | ||||||
14 | the State and notice of the exercise of the option is published | ||||||
15 | in
the appropriate volume of the Procurement Bulletin at least | ||||||
16 | 60 days prior to
the exercise of the option.
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17 | (c) Subject to appropriation. All leases shall recite that
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18 | they are subject to termination
and cancellation in any year | ||||||
19 | for which the General Assembly fails
to make an appropriation | ||||||
20 | to
make payments under the terms of the lease.
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21 | (d) Holdover. Beginning January 1, 2010, no lease may | ||||||
22 | continue on a month-to-month or other holdover basis for a | ||||||
23 | total of more than 6 months. Beginning July 1, 2010, the | ||||||
24 | Comptroller shall withhold payment of leases beyond this | ||||||
25 | holdover period. |
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1 | (Source: P.A. 90-572, eff. date - See Sec. 99-5.)
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
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