Illinois General Assembly - Full Text of HB3402
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Full Text of HB3402  102nd General Assembly

HB3402 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3402

 

Introduced 2/22/2021, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
110 ILCS 305/120 new

    Amends the University of Illinois Act. Provides that the Board of Trustees of the University of Illinois has 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. Provides that these 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. Provides that if the Board exercises the power to enter into financing agreements for 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. Provides that before issuance of any certificate of participation, the Board or its representatives shall appear before the Commission on Government Forecasting and Accountability and present the details of the proposal. Provides that upon receipt of a request by the 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 regard to the issuance of the certificate of participation within 60 days after the request. Provides that within the Commission's findings must be a statement in which the Commission makes a recommendation to the University as to proceeding with the certificate of participation.


LRB102 16809 CMG 22212 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3402LRB102 16809 CMG 22212 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The University of Illinois Act is amended by
5adding Section 120 as follows:
 
6    (110 ILCS 305/120 new)
7    Sec. 120. Certificates of participation for capital
8improvements.
9    (a) As used in this Section, "Commission" means the
10Commission on Government Forecasting and Accountability.
11    (b) The power of the Board of Trustees to enter into
12contracts includes the power to enter into financing
13agreements in connection with the financing of capital
14improvements, including technology or other related
15improvements, by selling certificates of participation in the
16installment payments made under such financing agreements.
17These financing agreements may be entered into for any period
18of time less than or equal to 30 years, but not to exceed the
19useful life of the capital improvement. Nothing in this
20Section authorizes the Board to incur State debt, as that term
21is defined in subsection (a) of Section 9 of Article IX of the
22Illinois Constitution.
23    (c) Upon determination by the Board to undertake a

 

 

HB3402- 2 -LRB102 16809 CMG 22212 b

1transaction for the sale of certificates of participation and
2enter into related financing agreements in connection with the
3financing of capital improvements, the Board shall adopt a
4resolution or resolutions describing in a general way the
5contemplated facilities or a combination thereof designated as
6the project, the estimated cost thereof, and any additional
7relevant information.
8    (d) Before issuance of any certificate of participation,
9the Board or its representatives shall appear before the
10Commission and present the details of the proposal. This
11presentation shall include such information as the Commission
12may request in relation to the proposed certificate of
13participation issuance. This information shall include, but is
14not limited to, the amount being financed, the nature of the
15project being financed, the proposed funding stream to pay for
16the certificate of participation issuance, the outstanding
17indebtedness of the University, and the status of all
18currently issued certificates of participation.
19    Upon receipt of a request by the University for a
20certificate of participation presentation, the Commission
21shall hold a public hearing and, upon adoption by a vote of the
22majority of appointed members, issue a record of findings in
23regard to the issuance of the certificate of participation
24within 60 days after the request.
25    As part of the Commission's considerations and findings,
26the Commission shall consider the effect the issuance of a

 

 

HB3402- 3 -LRB102 16809 CMG 22212 b

1certificate of participation shall have on the University's
2annual debt service and overall fiscal condition.
3    Within the Commission's findings must be a statement in
4which the Commission makes a recommendation to the University
5as to proceeding with the certificate of participation.