HB2909eng 103RD GENERAL ASSEMBLY

HB2909 Engrossed LRB103 05327 NHT 57083 b

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by changing Section 6a-6 as follows:

(30 ILCS 105/6a-6) (from Ch. 127, par. 142a6)

Sec. 6a-6. (1) Unless otherwise provided for in this Section, all items of income received by the Illinois Mathematics and Science Academy shall be deposited in a local clearing account paid into the State Treasury without delay and not later than 10 days after the receipt of such items of income. All such moneys shall be paid into a special fund in the State Treasury to be known as the "IMSA Income Fund". The General Assembly shall from time to time make appropriations payable from the IMSA Income Fund for the support and improvement of the academy.

(2) The following items of income shall be retained by the Illinois Mathematics and Science Academy in its own treasury: endowment funds, gifts, and trust funds; alumni dues and contributions; funds of any alumni association or organization, or any foundation related to the Academy; monies of the IMSA Fund for the Advancement of Education; funds received in connection with the retention, receipt, assignment, license, sale or transfer of interests in, rights to, or income from discoveries, inventions, patents, or copyrightable works; laboratory fees, fees for testing; supplementary food service fees received for payment to a food service vendor; refundable deposits; funds received from student or staff health programs; and moneys received for student athletics or student activities.

The Academy may also retain in its own treasury all moneys received from the sale of any debt obligations, including bonds issued under the provisions of the Illinois Mathematics and Science Academy Law, and any tuition, fee, and room and board revenue pledged to the payment of such obligations or necessary to meet any financial covenants related thereto or, as determined by the Board of Trustees of the Academy, necessary to pay such obligations or for the support and improvement of the Academy.

Whenever such funds retained by the Academy in its own treasury or held in a local clearing account 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 "An Act in relation to State moneys", approved June 28, 1919, as amended, 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.

(3) For purposes of implementing this Amendatory act of 1989, the Academy is authorized to transfer monies held in its treasury at the time of the effective date of this Act into the IMSA Income Fund in the State Treasury.

(4) The IMSA Special Purposes Trust Fund, held outside the State Treasury by the State Treasurer as ex officio custodian, shall receive the following items of income: federal aid and funds received in connection with contracts with governmental, public or private agencies or persons. Disbursements from this fund shall be by warrants drawn by the State Comptroller on receipt of vouchers duly executed and certified by the Illinois Mathematics and Science Academy.

All federal monies received as reimbursement for expenditures from the General Revenue Fund and that were made for the purposes authorized for expenditures from the IMSA Special Purposes Trust Fund shall be deposited by the Academy into the General Revenue Fund.

For purposes of implementing this amendatory Act of 1991, the Academy is authorized to transfer monies held in the IMSA Income Fund on the effective date of this amendatory Act of 1991 into the IMSA Special Purposes Trust Fund; provided, monies so transferred shall not exceed the amount that would be in the IMSA Special Purposes Trust Fund had such Fund been in existence when the monies were received.

(Source: P.A. 86-109; 87-142.)

Section 10. The Bond Authorization Act is amended by changing Section 1 as follows:

(30 ILCS 305/1) (from Ch. 17, par. 6601)

Sec. 1. (a) As used in this Act, "public corporations" mean any body corporate organized by or pursuant to the laws of this State to carry out a public governmental or proprietary function, including, without limitation of the foregoing, the State state, the Illinois Mathematics and Science Academy, or any school district, park district, city, village, incorporated town, county, drainage or any other type of district, commission, authority, university, or public community college, or any combination thereof, acting through the corporate authorities thereof.

(b) "Bonds" or "other evidences of indebtedness" mean any instrument providing for the payment of money executed by or on behalf of a public corporation or which the public corporation has assumed or agreed to pay, including, without limitation of the foregoing, bonds, notes, contracts, leases, certificates and tax anticipation warrants.

(Source: P.A. 82-622.)

Section 15. The Illinois Mathematics and Science Academy Law is amended by adding Section 4.5 as follows:

(105 ILCS 305/4.5 new)

Sec. 4.5. Revenue bond financing for facilities.

(a) The Board of Trustees is authorized to borrow money and issue and sell bonds in such amount, at such price, and redeemable prior to maturity with or without premium as the Board may determine for the purpose of acquiring, purchasing, completing, building, constructing, reconstructing, enlarging, improving, extending, or equipping buildings, structures, and facilities that, as determined by the Board, are required by or are necessary for the use or benefit of the Academy, including, without limiting the generality of the foregoing, school classrooms, science labs, or other instructional spaces; dormitories and student residence halls; apartments; staff housing facilities; facilities for student, staff, or administrative services; cafeteria and other food service areas; auditoriums; gymnasiums, field houses, stadiums, and other athletic facilities; and parking facilities and including the acquisition and improvement of a site or sites therefor. These bonds shall be payable only from tuition, fee, and room and board revenue and, if authorized by the Board, from other funds authorized by law to be used for such purpose and applied as a supplement to that revenue. The bonds shall be secured by a pledge of these revenues. The bonds may be issued in one or more series, and may bear such date or dates, may be in such denomination or denominations, may mature at such time or times not exceeding 40 years from the respective dates thereof, may mature in such amount or amounts, and may bear interest at such rate or rates, including variable rates, not exceeding the maximum rate authorized by the Bond Authorization Act at the time of the making of the contract for the sale of the bonds.

All bonds issued under the provisions of this Section shall be obligations of the Academy payable only in accordance with the terms thereof and shall not be obligations, general, special, or otherwise, of the State of Illinois. Such bonds shall not constitute a debt, legal or moral, of the State of Illinois and shall not be enforceable against the State of Illinois.

(b) The Board shall have the power from time to time to execute and deliver trust agreements under this Section to a bank or trust company authorized by the laws of this State or the United States of America to accept and execute trusts in this State. These trust agreements may contain any provision for the deposit with the trustee and the disposition of the proceeds of the bonds issued under the provisions of this Section and secured thereby, provisions for the protection and the enforcement of the rights and remedies of the trustee and the holders of such bonds as the Board may approve, and provision for the direct payment to or deposit with the trustee of any revenues pledged to the payment of bonds issued under the provisions of this Section.

(c) Bonds issued under the provisions of this Section shall be signed by the chair of the Board and shall be attested by the Director of the Academy, and if the official who signed or attested the bonds or whose facsimile appears on the bonds ceases to be such an official before the bonds have been issued by the Academy, the bonds may nevertheless be validly issued by the Academy.

(d) Upon the determination by the Board to undertake one or more projects set forth in subsection (a), the Board shall adopt a resolution or resolutions describing in a general way the contemplated facility or facilities designated as the project or projects and the estimated cost thereof. The amount of bonds, the maturity or maturities, the interest rate, and all details in respect thereof shall be set forth in the resolution or resolutions or in a related trust agreement authorized in subsection (b). The resolution or resolutions or related trust agreement shall contain such covenants with respect to the creation of reserves or accounts and any restrictions upon the issuance of additional bonds that may thereafter be issued payable from tuition, fee, and room and board revenue and, if authorized by the Board, from other funds authorized by law to be used for such purpose and applied as a supplement to that revenue as may be deemed necessary or advisable for the assurance and payment of the bonds thereby authorized, and the resolution or resolutions or related trust agreement shall provide for the payment of the principal of and interest on the bonds and the creation of any reserves or accounts established by the resolution or resolutions.

(e) Whenever bonds are issued under the provisions of this Section, it shall be the duty of the Board to establish tuition, fee, and room and board revenue (i) sufficient at all times to pay the principal of and interest on the bonds and to meet any related financial covenants or (ii) sufficient at all times, if added to other funds authorized and allocated for such purpose, to pay such principal and interest and meet such financial covenants.

(f) The Board may refund and refinance bonds issued under the provisions of this Section from time to time and to this end may authorize and issue refunding bonds whenever the Board determines that it is in the best interests of the Academy to do so. The proceeds derived from the sale of any such refunding bonds shall be applied either to the payment or redemption and retirement of the bonds to be refunded, or, if such bonds are not then subject to payment or redemption, all proceeds received at the sale thereof shall be invested in direct obligations of or obligations the principal of and interest on which are fully guaranteed by the United States of America, so long as such investments mature at such time, with interest thereon or profit therefrom, to provide funds adequate to pay, when due or called for redemption prior to maturity, the bonds to be refunded, together with the interest accrued thereon and any redemption premium due thereon. Such proceeds or obligations of the United States of America shall, with all other funds legally available for such purpose, be deposited in escrow with any bank or trust company doing business in this State with power to accept and execute trusts, to be held in an irrevocable trust for the payment at maturity or redemption of the bonds refunded and accrued interest and the applicable premiums, if any, if the bonds are redeemable prior to maturity or upon earlier voluntary surrender with the consent of the holder thereof. Any balance remaining in such escrow after the payment and retirement of the bonds to be refunded shall be returned to the Academy, to be used as revenues pledged for the payment of the refunding bonds. All of the provisions of this Section, including covenants that may be entered into in connection with the issuance of bonds, shall be applicable to the authorization and issuance of any refunding bonds.

Section 99. Effective date. This Act takes effect upon becoming law.