SB3001 93RD GENERAL ASSEMBLY

LRB093 14715 BDD 47120 b

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.

FISCAL NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning school construction.

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

Section 5. The General Obligation Bond Act is amended by changing Sections 2 and 5 as follows:

(30 ILCS 330/2) (from Ch. 127, par. 652)

Sec. 2. Authorization for Bonds. The State of Illinois is authorized to issue, sell and provide for the retirement of General Obligation Bonds of the State of Illinois for the categories and specific purposes expressed in Sections 2 through 8 of this Act, in the total amount of $29,858,149,369 $27,658,149,369.

The bonds authorized in this Section 2 and in Section 16 of this Act are herein called "Bonds".

Of the total amount of Bonds authorized in this Act, up to $2,200,000,000 in aggregate original principal amount may be issued and sold in accordance with the Baccalaureate Savings Act in the form of General Obligation College Savings Bonds.

Of the total amount of Bonds authorized in this Act, up to $300,000,000 in aggregate original principal amount may be issued and sold in accordance with the Retirement Savings Act in the form of General Obligation Retirement Savings Bonds.

Of the total amount of Bonds authorized in this Act, the additional $10,000,000,000 authorized by this amendatory Act of the 93rd General Assembly shall be used solely as provided in Section 7.2.

The issuance and sale of Bonds pursuant to the General Obligation Bond Act is an economical and efficient method of financing the capital and general operating needs of the State. This Act will permit the issuance of a multi-purpose General Obligation Bond with uniform terms and features. This will not only lower the cost of registration but also reduce the overall cost of issuing debt by improving the marketability of Illinois General Obligation Bonds.

(Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02; 92-598, eff. 6-28-02; 93-2, eff. 4-7-03.)

(30 ILCS 330/5) (from Ch. 127, par. 655)

Sec. 5. School Construction.

(a) The amount of $58,450,000 is authorized to make grants to local school districts for the acquisition, development, construction, reconstruction, rehabilitation, improvement, financing, architectural planning and installation of capital facilities, including but not limited to those required for special education building projects provided for in Article 14 of The School Code, consisting of buildings, structures, and durable equipment, and for the acquisition and improvement of real property and interests in real property required, or expected to be required, in connection therewith.

(b) $22,550,000, or so much thereof as may be necessary, for grants to school districts for the making of principal and interest payments, required to be made, on bonds issued by such school districts after January 1, 1969, pursuant to any indenture, ordinance, resolution, agreement or contract to provide funds for the acquisition, development, construction, reconstruction, rehabilitation, improvement, architectural planning and installation of capital facilities consisting of buildings, structures, durable equipment and land for educational purposes or for lease payments required to be made by a school district for principal and interest payments on bonds issued by a Public Building Commission after January 1, 1969.

(c) $10,000,000 for grants to school districts for the acquisition, development, construction, reconstruction, rehabilitation, improvement, architectural planning and installation of capital facilities consisting of buildings structures, durable equipment and land for special education building projects.

(d) $9,000,000 for grants to school districts for the reconstruction, rehabilitation, improvement, financing and architectural planning of capital facilities, including construction at another location to replace such capital facilities, consisting of those public school buildings and temporary school facilities which, prior to January 1, 1984, were condemned by the regional superintendent under Section 3-14.22 of The School Code or by any State official having jurisdiction over building safety.

(e) $5,250,000,000 $3,050,000,000 for grants to school districts for school improvement projects authorized by the School Construction Law. The bonds shall be sold in amounts not to exceed the following schedule, except any bonds not sold during one year shall be added to the bonds to be sold during the remainder of the schedule:

First year.......................................$200,000,000

Second year......................................$450,000,000

Third year.......................................$500,000,000

Fourth year......................................$500,000,000

Fifth year.......................................$800,000,000

Sixth year and thereafter........................$600,000,000

Seventh year.....................................$550,000,000

Eighth year......................................$550,000,000

Ninth year.......................................$550,000,000

Tenth year and thereafter........................$550,000,000

(Source: P.A. 91-39, eff. 6-15-99; 92-598, eff. 6-28-02.)

Section 10. The Illinois Procurement Code is amended by changing Section 1-10 as follows:

(30 ILCS 500/1-10)

Sec. 1-10. Application.

(a) This Code applies only to procurements for which contractors were first solicited on or after July 1, 1998. This Code shall not be construed to affect or impair any contract, or any provision of a contract, entered into based on a solicitation prior to the implementation date of this Code as described in Article 99, including but not limited to any covenant entered into with respect to any revenue bonds or similar instruments. All procurements for which contracts are solicited between the effective date of Articles 50 and 99 and July 1, 1998 shall be substantially in accordance with this Code and its intent.

(b) This Code shall apply regardless of the source of the funds with which the contracts are paid, including federal assistance moneys. This Code shall not apply to:

(1) Contracts between the State and its political subdivisions or other governments, or between State governmental bodies except as specifically provided in this Code.

(2) Grants, except for the filing requirements of Section 20-80.

(3) Purchase of care.

(4) Hiring of an individual as employee and not as an independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual.

(5) Collective bargaining contracts.

(6) Purchase of real estate.

(7) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations, provided that the chief legal counsel to the Governor shall give his or her prior approval when the procuring agency is one subject to the jurisdiction of the Governor, and provided that the chief legal counsel of any other procuring entity subject to this Code shall give his or her prior approval when the procuring entity is not one subject to the jurisdiction of the Governor.

(8) Contracts for services to Northern Illinois University by a person, acting as an independent contractor, who is qualified by education, experience, and technical ability and is selected by negotiation for the purpose of providing non-credit educational service activities or products by means of specialized programs offered by the university.

(9) Procurement expenditures by the Illinois Conservation Foundation when only private funds are used.

(10) Procurement by the Capital Development Board when exercising general supervision under the School Construction Law.

(Source: P.A. 91-627, eff. 8-19-99; 91-904, eff. 7-6-00; 92-797, eff. 8-15-02.)

Section 15. The Local Government Professional Services Selection Act is amended by adding Section 6.5 as follows:

(50 ILCS 510/6.5 new)

Sec. 6.5. School Construction.

(a) The exceptions stated in this Act based on having "a satisfactory relationship for services with one or more firms" do not apply to projects under the School Construction Law unless approved by the Executive Director of the Capital Development Board.

(b) All procurement of architectural, engineering, and land surveying services for projects that are funded in whole or in part under the School Construction Law, including without limitation small contracts and emergency services under Section 8, shall be conducted by the Capital Development Board on behalf of the school district unless the Executive Director of the Capital Development Board grants a written waiver to the school district with respect to a specific project.

Section 20. The School Construction Law is amended by changing Sections 5-5, 5-10, 5-15, 5-20, 5-25, 5-30, 5-40, 5-50, 5-60, and 5-100 as follows:

(105 ILCS 230/5-5)

Sec. 5-5. Definitions. As used in this Article:

"Approved school construction bonds" mean bonds that were approved by referendum after January 1, 1996 but prior to January 1, 1998 as provided in Sections 19-2 through 19-7 of the School Code to provide funds for the acquisition, development, construction, reconstruction, rehabilitation, improvement, architectural planning, and installation of capital facilities consisting of buildings, structures, durable-equipment, and land for educational purposes.

"Grant index" means a figure for each school district equal to one minus the ratio of the district's equalized assessed valuation per pupil in average daily attendance to the equalized assessed valuation per pupil in average daily attendance of the district located at the 90th percentile for all districts of the same category. For the purpose of calculating the grant index, school districts are grouped into 2 categories, Category I and Category II. Category I consists of elementary and unit school districts. The equalized assessed valuation per pupil in average daily attendance of each school district in Category I shall be computed using its grades kindergarten through 8 average daily attendance figure. A unit school district's Category I grant index shall be used for projects or portions of projects constructed for elementary school pupils. Category II consists of high school and unit school districts. The equalized assessed valuation per pupil in average daily attendance of each school district in Category II shall be computed using its grades 9 through 12 average daily attendance figure. A unit school district's Category II grant index shall be used for projects or portions of projects constructed for high school pupils. The changes made by Public this amendatory Act 92-168 (effective July 26, 2001) of the 92nd General Assembly apply to all grants made on or after July 26, 2001 the effective date of this amendatory Act, provided that for grants not yet made on July 26, 2001 the effective date of this amendatory Act but made in fiscal year 2001 and for grants made in fiscal year 2002, the grant index for a school district shall be the greater of (i) the grant index as calculated under this Law on or after July 26, 2001 the effective date of this amendatory Act or (ii) the grant index as calculated under this Law before July 26, 2001 the effective date of this amendatory Act. The grant index shall be no less than 0.35 and no greater than 0.75 for each district; provided that the grant index for districts whose equalized assessed valuation per pupil in average daily attendance is at the 99th percentile and above for all districts of the same type shall be 0.00. Grant indexes shall be calculated by the Capital Development Board. In making its calculations, the Capital Development Board shall receive full cooperation and assistance from the State Board of Education.

"School construction project" means the acquisition, development, construction, reconstruction, rehabilitation, improvement, architectural planning, and installation of capital facilities consisting of buildings, structures, durable equipment, and land for educational purposes.

"School maintenance project" means a project, other than a school construction project, intended to provide for the maintenance or upkeep of buildings or structures for educational purposes, but does not include ongoing operational costs.

(Source: P.A. 91-38, eff. 6-15-99; 92-168, eff. 7-26-01.)

(105 ILCS 230/5-10)

Sec. 5-10. Grant awards. The Capital Development Board is authorized to make grants to school districts for school construction projects with funds appropriated by the General Assembly from the School Infrastructure Fund pursuant to the provisions of this Article. The State Board of Education is authorized to make grants to school districts for debt service with funds appropriated by the General Assembly from the School Infrastructure Fund pursuant to the provisions of this Article.

(Source: P.A. 90-548, eff. 1-1-98.)

(105 ILCS 230/5-15)

Sec. 5-15. Grant entitlements. The Capital Development State Board of Education is authorized to issue grant entitlements for school construction projects. The Capital Development Board and debt service and shall determine the priority order for school construction project grants to be made by the Capital Development Board. When issuing a grant entitlement for a school construction project, the Capital Development Board, as a part of that entitlement, shall indicate the categorization of the project as provided in Section 5-30 and shall certify to the district receiving the entitlement the dollar amount of the school construction project's cost that the district will be required to finance with non-grant funds in order to qualify to receive a school construction project grant under this Article from the Capital Development Board.

(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)

(105 ILCS 230/5-20)

Sec. 5-20. Grant application; district facilities plan. School districts shall apply to the Capital Development State Board of Education for school construction project grants and debt service grants. Districts filing grant applications shall submit to the Capital Development State Board a district facilities plan that shall include, but not be limited to, an assessment of present and future district facility needs as required by present and anticipated educational programming, the availability of local financial resources including current revenues, fund balances, and unused bonding capacity, the impact on the educational fund such as additional teachers or other staff, a fiscal plan for meeting present and anticipated debt service obligations, and a maintenance plan and schedule that contain necessary assurances that new, renovated, and existing facilities are being or will be properly maintained. If a district that applies for a school construction project grant has no unused bonding capacity or if its unused bonding capacity may be less than the portion of the cost of the proposed school construction project that the district would be required to finance with non-grant funds, the application and facilities plan submitted by the district shall set forth the estimated amount of the project's cost that the district proposes to finance by the issuance of bonds under subsection (n) of Section 19-1 of the School Code. The Capital Development State Board of Education shall review and approve district facilities plans prior to issuing grant entitlements. Each district that receives a grant entitlement shall annually update its district facilities plan and submit the revised plan to the Capital Development State Board for approval.

(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)

(105 ILCS 230/5-25)

Sec. 5-25. Eligibility and project standards.

(a) The Capital Development State Board of Education shall establish eligibility standards for school construction project grants and debt service grants. These standards shall include minimum enrollment requirements for eligibility for school construction project grants of 200 students for elementary districts, 200 students for high school districts, and 400 students for unit districts. The Capital Development State Board of Education shall approve a district's eligibility for a school construction project grant or a debt service grant pursuant to the established standards.

(b) The Capital Development Board shall establish project standards for all school construction project grants provided pursuant to this Article. These standards shall include space and capacity standards as well as the determination of recognized project costs that shall be eligible for State financial assistance and enrichment costs that shall not be eligible for State financial assistance.

(c) The State Board of Education and the Capital Development Board shall not establish standards that disapprove or otherwise establish limitations that restrict the eligibility of a school district with a population exceeding 500,000 for a school construction project grant based on the fact that any or all of the school construction project grant will be used to pay debt service or to make lease payments, as authorized by subsection (b) of Section 5-35 of this Law.

(Source: P.A. 90-548, eff. 1-1-98; 91-38, eff. 6-15-99.)

(105 ILCS 230/5-30)

Sec. 5-30. Categorization and prioritization Priority of school construction projects. The Capital Development Board State Board of Education shall develop standards for the determination of priority needs concerning school construction projects based upon approved district facilities plans. Such standards shall call for prioritization based on the degree of need. and Project categories are as follows type in the following order:

(1) Replacement or reconstruction of school buildings destroyed or damaged by flood, tornado, fire, earthquake, or other disasters, either man-made or produced by nature;

(2) State program priority projects including but not limited to construction of classrooms for pre-kindergarten and kindergarten; and construction of shared use facilities that provide for school districts' joint use for recreational, clinical, library, pre-school, or before or after school programs with other governmental units including State institutions of higher learning;

(3) (2) Projects designed to alleviate a shortage of classrooms due to population growth or to replace aging school buildings;

(4) (3) Projects resulting from interdistrict reorganization of school districts contingent on local referenda;

(5) (4) Replacement, rehabilitation, or reconstruction of school facilities determined to be severe and continuing health or life safety hazards; and

(6) (5) Alterations necessary to provide accessibility for qualified individuals with disabilities; and

(6) Other unique solutions to facility needs.

(Source: P.A. 90-548, eff. 1-1-98.)

(105 ILCS 230/5-40)

Sec. 5-40. Supervision; inter-governmental agreements of school construction projects.

(a) The Capital Development Board shall exercise general supervision over school construction projects financed pursuant to this Article. General supervision includes the procurement and administration of design and construction contracts. In exercising general supervision, the Board (i) may use alternative delivery methods as provided by law and (ii) may exercise all powers relating to construction that are granted to school districts under the School Code. The workforce hiring goals adopted by the Board under the Business Enterprise for Minorities, Females, and Persons with Disabilities Act apply to the Board when acting under this Act.

(b) In anticipation of an award of a grant under this Article, the Capital Development Board may provide advice and assistance to a school district within the limits of the Board's functions of general supervision. The purpose of providing advice and assistance is to ensure that the project will qualify for a grant should grant amounts become available, particularly if the school district is providing its own funding to commence or complete the project.

(c) Each school district that is awarded a grant under this Article must enter into an inter-governmental agreement with the Capital Development Board. The agreement shall set forth the terms and conditions of the grant and the responsibilities of the Board and the district. In addition, the agreement may provide (i) that the school district shall perform some of the general supervisory functions, with the approval of the Executive Director of the Capital Development Board, (ii) that the Capital Development Board may charge a grant or contract administration fee not to exceed 1% of the contract amount, and (iii) that, if the school district has received the advice and assistance of the Capital Development Board under subsection (b), then with the approval of the Executive Director of the Capital Development Board, grant funds may be used to reimburse the school district for project amounts expended out of the district's own funds.

(Source: P.A. 90-548, eff. 1-1-98.)

(105 ILCS 230/5-50)

Sec. 5-50. Referendum requirements. After the Capital Development State Board of Education has approved all or part of a district's application and issued a grant entitlement for a school construction project grant, the district shall submit the project or the financing of the project to a referendum when such referendum is required by law.

(Source: P.A. 90-548, eff. 1-1-98.)

(105 ILCS 230/5-60)

Sec. 5-60. School capital needs assessment. The State Board of Education and the Capital Development Board shall file with the General Assembly a comprehensive assessment report of the capital needs of all school districts in this State before January 1, 2005 and every 2 years thereafter. This assessment shall include without limitation an analysis of the 6 categories of capital needs prioritized in Section 5-30 of this Law.

(Source: P.A. 93-489, eff. 8-8-03.)

(105 ILCS 230/5-100)

Sec. 5-100. School maintenance project grants.

(a) The Capital Development State Board of Education is authorized to make grants to school districts, without regard to enrollment, for school maintenance projects. These grants shall be paid out of moneys appropriated for that purpose from the School Infrastructure Fund. No grant under this Section for one fiscal year shall exceed $50,000, but a school district may receive grants for more than one project during one fiscal year. A school district must provide local matching funds in an amount equal to the amount of the grant under this Section. A school district has no entitlement to a grant under this Section.

(b) The Capital Development State Board of Education shall adopt rules to implement this Section. These rules need not be the same as the rules for school construction project grants or debt service grants.

The rules may specify: (1) the manner of applying for grants; (2) project eligibility requirements; (3) restrictions on the use of grant moneys; (4) the manner in which school districts must account for the use of grant moneys; and (5) any other provision that the Capital Development State Board determines to be necessary or useful for the administration of this Section.

The rules shall specify the methods and standards to be used by the Captial Development State Board to prioritize applications. School maintenance projects shall be prioritized in the following order:

(i) emergency projects;

(ii) health/life safety projects;

(iii) State Program priority projects;

(iv) permanent improvement projects; and

(v) other projects.

(c) In each school year in which school maintenance project grants are awarded, 20% of the total amount awarded shall be awarded to a school district with a population of more than 500,000, provided that the school district complies with the requirements of this Section and the rules adopted under this Section.

(Source: P.A. 91-38, eff. 6-15-99.)

(105 ILCS 230/5-45 rep.)

Section 30. The School Construction Law is amended by repealing Section 5-45.

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