Bill Amendment: IL SB2969 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: HIGHER ED-GRAD GRANT PROGRAM

Status: 2019-01-09 - Session Sine Die [SB2969 Detail]

Download: Illinois-2017-SB2969-House_Amendment_003.html

Rep. Norine K. Hammond

Filed: 5/25/2018

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1
AMENDMENT TO SENATE BILL 2969
2 AMENDMENT NO. ______. Amend Senate Bill 2969 by replacing
3everything after the enacting clause with the following:
4 "Section 5. The State University Certificates of
5Participation Act is amended by changing Sections 30 and 90 and
6by adding Section 35 as follows:
7 (110 ILCS 73/30)
8 Sec. 30. Debt limit. The maximum annual debt service for a
9State University's total certificate of participation
10obligation must not exceed the following:
11 (1) For the University of Illinois, $200,000,000
12 $100,000,000.
13 (2) For Southern Illinois University, $40,000,000
14 $20,000,000.
15 (3) For Northern Illinois University, $40,000,000
16 $20,000,000.

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1 (4) For Illinois State University, $40,000,000
2 $10,000,000.
3 (5) For Western Illinois University, $20,000,000
4 $10,000,000.
5 (6) For Eastern Illinois University, $20,000,000
6 $10,000,000.
7 (7) For Northeastern Illinois University, $10,000,000
8 $5,000,000.
9 (8) For Chicago State University, $10,000,000
10 $5,000,000.
11 (9) For Governors State University, $10,000,000
12 $5,000,000.
13(Source: P.A. 96-15, eff. 6-22-09.)
14 (110 ILCS 73/35 new)
15 Sec. 35. Certificates of participation for capital
16improvements.
17 (a) The power of the Board of any State University to enter
18into contracts shall include the power to enter into financing
19agreements in connection with the financing of capital
20improvements, including technology or other related
21improvements, by selling certificates of participation in the
22installment payments made under the financing agreements.
23These financing agreements may be entered into for any period
24of time not to exceed 30 years, but may not exceed the useful
25life of the capital improvement.

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1 (b) Upon determination by the Board to undertake a
2transaction for the sale of certificates of participation and
3to enter into related financing agreements in connection with
4the financing of capital improvements, the Board shall adopt a
5resolution or resolutions describing generally the
6contemplated facilities or a combination of facilities
7designated as the project, the estimated costs of the project,
8and any additional relevant information.
9 (c) Before the issuance of any certificate of
10participation, the Board or its representative shall appear
11before the Commission and present the details of the proposal.
12This presentation shall include any information the Commission
13requests in relation to the proposed certificate of
14participation issuance. This information shall include, but is
15not limited to, the amount being financed, the nature of the
16project being financed, the proposed funding stream to pay for
17the certificate issuance, the current outstanding indebtedness
18of the State University, and the status of all currently issued
19certificates of participation.
20 Upon receipt of a request by the Board for a certificate of
21participation presentation, the Commission shall hold a public
22hearing and, upon adoption by a vote of the majority of
23appointed members, issue a record of its findings no later than
2460 days after the request.
25 As part of the Commission's considerations and findings,
26the Commission shall consider the effect the issuance of a

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1certificate of participation shall have on the State
2University's annual debt service and overall fiscal condition.
3The Commission's findings must include a statement in which the
4Commission makes a recommendation to the Board as to how to
5proceed with the certificate of participation issuance. The
6recommendation shall be (i) "favorably recommended", (ii)
7"recommended with concerns", or (iii) "non-support of
8issuance". The Commission shall report the findings no later
9than 15 days after the hearing to all of the following:
10 (1) The Speaker of the House of Representatives.
11 (2) The Minority Leader of the House of
12 Representatives.
13 (3) The President of the Senate.
14 (4) The Minority Leader of the Senate.
15 (5) The Governor's Office of Management and Budget.
16 (6) The President of the State University.
17 The reports to the General Assembly shall be filed with the
18Clerk of the House of Representatives and the Secretary of the
19Senate in electronic form only, in the manner that the Clerk
20and the Secretary shall direct.
21 Upon a finding of "non-support of issuance", the Board may
22not proceed with the issuance of the certificate of
23participation involved in the finding without the approval of
24the General Assembly through the adoption of a joint
25resolution.
26 (d) Each year, upon receipt of its external Auditor General

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1audit report, the Board shall file with the Commission a report
2containing the status of all outstanding certificates of
3participation the Board has issued and a copy of the annual
4budget as approved by the Board.
5 (e) Each issuance of a certificate of participation shall
6include within the appropriate documents related to its
7execution the following statement, which sets forth required
8limitations in relation to the certificate:
9 "The Board of Trustees' obligation to make payments
10 does not constitute a debt of the Board or the State of
11 Illinois within the meaning of any constitutional or
12 statutory limitation. The installment payments required by
13 certificates of participation incurred by the Board of
14 Trustees are not secured by the full faith and credit of
15 the State, are not required to be repaid, and may not be
16 repaid, directly or indirectly, from tax revenue."
17 (f) The maximum annual debt service for the Board's total
18certificate of participation obligation must not exceed
19$100,000,000.
20 (g) Nothing in this Section authorizes the Board to incur
21State debt, as defined under subsection (a) of Section 9 of
22Article IX of the Illinois Constitution.
23 (h) A State University with multiple campuses shall
24distribute funds derived from certificates of participation
25under this Section proportionately to its respective campuses
26based on the Current Replacement Value or level of deferred

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1maintenance need of each campus.
2 (110 ILCS 73/90)
3 Sec. 90. Expiration of Act. This Act applies until December
431, 2028 2014. However, the refunding of certificates of
5participation issued prior to December 31, 2028 2014 in
6accordance with the Act is permitted.
7(Source: P.A. 96-15, eff. 6-22-09.)
8 (110 ILCS 73/10 rep.)
9 (110 ILCS 73/15 rep.)
10 (110 ILCS 73/20 rep.)
11 (110 ILCS 73/25 rep.)
12 Section 10. The State University Certificates of
13Participation Act is amended by repealing Sections 10, 15, 20,
14and 25.
15 Section 99. Effective date. This Act takes effect upon
16becoming law.".
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