Bill Amendment: IL SB2357 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: EDUCATION-TECH

Status: 2019-01-09 - Session Sine Die [SB2357 Detail]

Download: Illinois-2017-SB2357-Senate_Amendment_001.html

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Sen. Scott M. Bennett

Filed: 5/15/2018

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AMENDMENT TO SENATE BILL 2357
AMENDMENT NO. ______. Amend Senate Bill 2357 by replacing
everything after the enacting clause with the following:
"Section 5. The State University Certificates of
Participation Act is amended by changing Sections 30 and 90 and
by adding Section 35 as follows:
(110 ILCS 73/30)
Sec. 30. Debt limit. The maximum annual debt service for a
State University's total outstanding certificate of
participation obligation must not exceed the following:
(1) For the University of Illinois, $100,000,000.
(2) For Southern Illinois University, $40,000,000
$20,000,000.
(3) For Northern Illinois University, $40,000,000
$20,000,000.
(4) For Illinois State University, $20,000,000

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$10,000,000.
(5) For Western Illinois University, $20,000,000
$10,000,000.
(6) For Eastern Illinois University, $20,000,000
$10,000,000.
(7) For Northeastern Illinois University, $10,000,000
$5,000,000.
(8) For Chicago State University, $10,000,000
$5,000,000.
(9) For Governors State University, $10,000,000
$5,000,000.
(Source: P.A. 96-15, eff. 6-22-09.)
(110 ILCS 73/35 new)
Sec. 35. Certificates of participation for capital
improvements.
(a) The power of the Board of any State University to enter
into contracts shall include 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 the financing agreements.
These financing agreements may be entered into for any period
of time not to exceed 30 years, but may not to exceed the
useful life of the capital improvement.
(b) Upon determination by the Board to undertake a

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transaction for the sale of certificates of participation and
to enter into related financing agreements in connection with
the financing of capital improvements, the Board shall adopt a
resolution or resolutions describing generally the
contemplated facilities or a combination of facilities
designated as the project, the estimated costs of the project,
and any additional relevant information.
(c) Before the issuance of any certificate of
participation, the Board or its representative shall appear
before the Commission and present the details of the proposal.
This presentation shall include any information the Commission
requests 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 the Board 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 its findings no later than
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

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University's annual debt service and overall fiscal condition.
The Commission's findings must include a statement in which the
Commission makes a recommendation to the Board as to how to
proceed with the certificate of participation issuance. The
recommendation shall be (i) "favorably recommended", (ii)
"recommended with concerns", or (iii) "non-support of
issuance". The Commission shall report the findings no later
than 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.
The reports to the General Assembly shall be filed with the
Clerk of the House of Representatives and the Secretary of the
Senate in electronic form only, in the manner that the Clerk
and the Secretary shall direct.
Upon a finding of "non-support of issuance", the Board may
not proceed with the issuance of the certificate of
participation involved in the finding without the approval of
the General Assembly through the adoption of a joint
resolution.
(d) Each year, upon receipt of its external Auditor General
audit report, the Board shall file with the Commission a report

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containing the status of all outstanding certificates of
participation the Board has issued and a copy of the annual
budget as approved by the Board.
(e) 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 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 by
certificates of participation incurred by the Board of
Trustees are not secured by the full faith and credit of
the State, are not required to be repaid, and may not be
repaid, directly or indirectly, from tax revenue."
(f) The maximum annual debt service for the Board's total
certificate of participation obligation must not exceed
$100,000,000.
(g) Nothing in this Section authorizes the Board to incur
State debt, as defined under subsection (a) of Section 9 of
Article IX of the Illinois Constitution.
(110 ILCS 73/90)
Sec. 90. Expiration of Act. This Act applies until December
31, 2028 2014. However, the refunding of certificates of
participation issued prior to December 31, 2028 2014 in

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accordance with the Act is permitted.
(Source: P.A. 96-15, eff. 6-22-09.)
(110 ILCS 73/10 rep.)
(110 ILCS 73/15 rep.)
(110 ILCS 73/20 rep.)
(110 ILCS 73/25 rep.)
Section 10. The State University Certificates of
Participation Act is amended by repealing Sections 10, 15, 20,
and 25.
Section 99. Effective date. This Act takes effect upon
becoming law.".