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Public Act 096-0015 |
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the State | ||||
University Certificates of Participation Act. | ||||
Section 5. Definitions. 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.
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Section 10. 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.
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Section 15. Accountability and review of proposed | ||
certificate issuance. 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.
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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 | ||
the request. | ||
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 | ||
issuance".
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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 | ||
Representatives. | ||
(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. | ||
Section 20. Annual reporting. 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. | ||
Section 25. Required statement on certificate of | ||
participation documents. 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:
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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. | ||
Section 30. Debt limit. 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. | ||
Section 90. 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. | ||
Section 95. The Statute on Statutes is amended by changing | ||
Section 8 as follows:
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(5 ILCS 70/8) (from Ch. 1, par. 1107)
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Sec. 8. Omnibus Bond Acts.
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(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
Property Tax | ||
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
Investment | ||
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, the State | ||
University Certificates of Participation Act, and
any similar | ||
Act granting additional
omnibus bond
powers to governmental | ||
entities generally, whether enacted before, on, or
after the | ||
effective date of this amendatory Act of 1989.
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(b) The General Assembly recognizes that the proliferation | ||
of governmental
entities has resulted in the enactment of | ||
hundreds of statutory provisions
relating to the borrowing and | ||
other powers of governmental entities. The
General Assembly | ||
addresses and has addressed problems common to all such
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governmental entities so that they have equal access to the | ||
municipal bond
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.
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(c) It is and always has been the intention of the General | ||
Assembly that
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
grant of | ||
power or limitation contained in any other law of the State,
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whether or not the other law is enacted or amended after an | ||
Omnibus Bond
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
named Omnibus | ||
Bond Act does not apply.
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(d) All instruments providing for the payment of money | ||
executed
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
corporate | ||
authorities, or which any governmental entity has assumed or
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agreed to pay, which were:
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(1) issued or authorized to be issued by proceedings | ||
adopted by such
corporate authorities before the effective | ||
date of this amendatory Act of 1989;
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(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; |
and
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(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
issuing | ||
such instruments, payable in accordance with their terms.
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(Source: P.A. 93-205, eff. 1-1-04.)
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Section 97. The Illinois Procurement Code is amended by | ||
changing Sections 20-60 and 40-25 as follows:
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(30 ILCS 500/20-60)
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Sec. 20-60. Duration of contracts.
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(a) Maximum duration. A contract , other than a contract | ||
entered into pursuant to the State University Certificates of | ||
Participation Act, may be entered into for
any period of time | ||
deemed
to be in the best interests of the State but not
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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
accordance with | ||
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.
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(b) Subject to appropriation. All contracts made or entered
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into shall recite that they are
subject to termination and |
cancellation in any year for which the
General Assembly fails | ||
to make
an appropriation to make payments under the terms of | ||
the contract.
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(Source: P.A. 95-344, eff. 8-21-07.)
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(30 ILCS 500/40-25)
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Sec. 40-25. Length of leases.
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(a) Maximum term. Leases shall be for a term not to exceed
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10 years inclusive, beginning January, 1, 2010, of proposed | ||
contract renewals and shall include
a termination option in | ||
favor of the State after 5 years.
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(b) Renewal. Leases may include a renewal option. An
option | ||
to renew may be
exercised only when a State purchasing officer | ||
determines in
writing that renewal is in the best
interest of | ||
the State and notice of the exercise of the option is published | ||
in
the appropriate volume of the Procurement Bulletin at least | ||
60 days prior to
the exercise of the option.
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(c) Subject to appropriation. All leases shall recite that
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they are subject to termination
and cancellation in any year | ||
for which the General Assembly fails
to make an appropriation | ||
to
make payments under the terms of the lease.
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(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 | ||
holdover period. |
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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