Public Act 096-0015
Public Act 0015 96TH GENERAL ASSEMBLY
|Public Act 096-0015
||LRB096 09046 JAM 19186 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
This Act may be cited as the
University Certificates of Participation Act.
As used in this Act:
"Board" means the Board of Trustees of a State University.
"Commission" means the Commission on Government
Forecasting and Accountability.
"State University" means the University of Illinois,
Southern Illinois University, Chicago State University,
Eastern Illinois University, Governors State University,
Illinois State University, Northeastern Illinois University,
Northern Illinois University, and Western Illinois University
and any of their successors.
Certificates of participation.
(a) The power of the Board of any State University to enter
into contracts includes 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.
Such 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. Nothing in this Act
authorizes the Board of any State University to incur "State
debt" as that term is defined in subsection (a) of Section 9 of
Article IX of the Illinois Constitution of 1970. This
subsection (a) is declaratory of existing law.
(b) Upon determination by the Board of a State University
to undertake a transaction for the sale of certificates of
participation and enter into related financing agreements in
connection with the financing of 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.
Accountability and review of proposed
Before issuance of any certificate of
participation, a State University shall appear before the
Commission and present the details of the proposal. This
presentation shall include such information as the Commission
may request in relation to the proposed certificate of
participation issuance. This information shall include, but is
not limited to, the amount being financed, the nature of the
project being financed, the proposed funding stream to pay for
the certificate issuance, the current outstanding indebtedness
of the State University, and the status of all currently issued
certificates of participation.
Upon receipt of a request by a State 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
regards to the issuance of the certificate within 60 days after
As part of the Commission's considerations and findings,
the Commission shall consider the effect the issuance of a
certificate of participation shall have on the State
University's annual debt service and overall fiscal condition.
Within the Commission's findings shall be a statement in
which the Commission makes a recommendation to the State
University as to proceeding with the certificate issuance. The
recommendation shall be either (i) "favorably recommended",
(ii) "recommended with concerns", or (iii) "non-support of
The Commission shall report the findings within 15 days
after the hearing to all of the following:
(1) The Speaker of the House of Representatives.
(2) The Minority Leader of the House of
(3) The President of the Senate.
(4) The Minority Leader of the Senate.
(5) The Governor's Office of Management and Budget.
(6) The President of the State University that had
requested the certificate presentation.
Upon a finding of "non-support of issuance", a State
University may not proceed with the issuance of the certificate
involved in the finding without the approval of the General
Assembly through the adoption of a joint resolution.
Prior to December 31 of each
year, each State University shall file with the Commission a
report stating the status of all outstanding certificates of
participation the State University has issued and a copy of the
annual budget as approved by the Board.
Required statement on certificate of
Each issuance of a certificate of
participation shall include within the appropriate documents
related to its execution the following statement, which sets
forth required limitations in relation to the certificate:
THE BOARD OF TRUSTEES' OBLIGATION TO MAKE INSTALLMENT
PAYMENTS DOES NOT CONSTITUTE A DEBT OF THE BOARD OR THE STATE
OF ILLINOIS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR
STATUTORY LIMITATION. THE INSTALLMENT PAYMENTS REQUIRED UNDER
CERTIFICATES OF PARTICIPATION INCURRED BY THE UNIVERSITY ARE
NOT SECURED BY THE FULL FAITH AND CREDIT OF THE STATE AND ARE
NOT REQUIRED TO BE REPAID AND MAY NOT BE REPAID, DIRECTLY OR
INDIRECTLY, FROM TAX REVENUE.
The maximum annual debt service for
a State University's total certificate of participation
obligation must not exceed the following:
(1) For the University of Illinois, $100,000,000.
(2) For Southern Illinois University, $20,000,000.
(3) For Northern Illinois University, $20,000,000.
(4) For Illinois State University, $10,000,000.
(5) For Western Illinois University, $10,000,000.
(6) For Eastern Illinois University, $10,000,000.
(7) For Northeastern Illinois University, $5,000,000.
(8) For Chicago State University, $5,000,000.
(9) For Governors State University, $5,000,000.
Expiration of Act.
This Act applies until
December 31, 2014. However, the refunding of certificates of
participation issued prior to December 31, 2014 in accordance
with the Act is permitted.
The Statute on Statutes is amended by changing
Section 8 as follows:
(5 ILCS 70/8)
(from Ch. 1, par. 1107)
Omnibus Bond Acts.
(a) A citation to the Omnibus Bond Acts is a citation to
all of the
following Acts, collectively, as amended from time
to time: the Bond
Authorization Act, the Registered Bond Act,
the Municipal Bond Reform Act,
the Local Government Debt Reform
Act, subsection (a) of Section 1-7 of the
Extension Limitation Act,
subsection (a) of Section 18-190 of
the Property Tax Code,
the Uniform Facsimile Signature of
Public Officials Act, the Local Government
Bond Validity Act,
the Illinois Finance Authority Act, the Public Funds
Act, the Local
Government Credit Enhancement Act, the Local
Government Defeasance of Debt
Law, the Intergovernmental
Cooperation Act, the Local
Government Financial Planning and
Supervision Act, the Special Assessment
Supplemental Bond and
Procedure Act, Section 12-5 of the Election Code,
University Certificates of Participation Act,
Act granting additional
powers to governmental
entities generally, whether enacted before, on, or
effective date of this amendatory Act of 1989.
(b) The General Assembly recognizes that the proliferation
entities has resulted in the enactment of
hundreds of statutory provisions
relating to the borrowing and
other powers of governmental entities. The
addresses and has addressed problems common to all such
governmental entities so that they have equal access to the
market. It has been, and will continue to be,
the intention of the General
Assembly to enact legislation
applicable to governmental entities in an
omnibus fashion, as
has been done in the provisions of the Omnibus Bond Acts.
(c) It is and always has been the intention of the General
the Omnibus Bond Acts are and always have been
supplementary grants of
power, cumulative in nature and in
addition to any power or authority
granted in any other laws of
the State. The Omnibus Bond Acts are
supplementary grants of
power when applied in connection with any similar
power or limitation contained in any other law of the State,
whether or not the other law is enacted or amended after an
Act or appears to be more restrictive than an
Omnibus Bond Act, unless the
General Assembly expressly
declares in such other law that a specifically
Bond Act does not apply.
(d) All instruments providing for the payment of money
by or on behalf of any governmental entity organized
by or under
the laws of this State, including without
limitation the State, to carry
out a public governmental or
proprietary function, acting through its
authorities, or which any governmental entity has assumed or
agreed to pay, which were:
(1) issued or authorized to be issued by proceedings
adopted by such
corporate authorities before the effective
date of this amendatory Act of 1989;
(2) issued or authorized to be issued in accordance
with the procedures
set forth in or pursuant to any
authorization contained in any of the
Omnibus Bond Acts;
(3) issued or authorized to be issued for any purpose
authorized by the
laws of this State,
are valid and legally
binding obligations of the governmental entity
such instruments, payable in accordance with their terms.
(Source: P.A. 93-205, eff. 1-1-04.)
The Illinois Procurement Code is amended by
changing Sections 20-60 and 40-25 as follows:
(30 ILCS 500/20-60)
Duration of contracts.
(a) Maximum duration. A contract
, other than a contract
entered into pursuant to the State University Certificates of
may be entered into for
any period of time
to be in the best interests of the State but not
exceeding 10 years
inclusive, beginning January 1, 2010, of
proposed contract renewals
. The length of
a lease for real
property or capital improvements shall be in
the provisions of
Section 40-25. A contract for bond or
mortgage insurance awarded by the Illinois Housing Development
Authority, however, may be entered into for any period of time
less than or equal to the maximum period of time that the
subject bond or mortgage may remain outstanding.
(b) Subject to appropriation. All contracts made or entered
into shall recite that they are
subject to termination and
cancellation in any year for which the
General Assembly fails
an appropriation to make payments under the terms of
(Source: P.A. 95-344, eff. 8-21-07.)
(30 ILCS 500/40-25)
Length of leases.
(a) Maximum term. Leases shall be for a term not to exceed
inclusive, beginning January, 1, 2010, of proposed
and shall include
a termination option in
favor of the State after 5 years.
(b) Renewal. Leases may include a renewal option. An
to renew may be
exercised only when a State purchasing officer
writing that renewal is in the best
the State and notice of the exercise of the option is published
the appropriate volume of the Procurement Bulletin at least
60 days prior to
the exercise of the option.
(c) Subject to appropriation. All leases shall recite that
they are subject to termination
and cancellation in any year
for which the General Assembly fails
to make an appropriation
make payments under the terms of the lease.
(d) Holdover. Beginning January 1, 2010, no lease may
continue on a month-to-month or other holdover basis for a
total of more than 6 months. Beginning July 1, 2010, the
Comptroller shall withhold payment of leases beyond this
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
This Act takes effect upon
Effective Date: 06/22/2009