Bill Text: IL HB2909 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the State Finance Act, the Bond Authorization Act, and the Illinois Mathematics and Science Academy Law. Sets forth certain types of revenue the Illinois Mathematics and Science Academy may retain in its own treasury. Provides that the Board of Trustees of the Academy is authorized to borrow money and issue and sell bonds for the purpose of acquiring, purchasing, completing, building, constructing, reconstructing, enlarging, improving, extending, or equipping buildings, structures, and facilities that are required by or are necessary for the use or benefit of the Academy. Provides that such bonds shall be payable only from tuition, fee, and room and board revenue and from other funds authorized by law to be used for such purpose and applied as a supplement to such revenue. Sets forth other provisions concerning the issuance of bonds by the Academy, including the execution and delivery of trust agreements to a bank or trust company and the adoption of a resolution or resolutions describing in a general way the contemplated facility or facilities designated as the project or projects and the estimated cost. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed) 2023-03-27 - Referred to Assignments [HB2909 Detail]

Download: Illinois-2023-HB2909-Engrossed.html

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AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by changing
Section 6a-6 as follows:
(30 ILCS 105/6a-6) (from Ch. 127, par. 142a6)
Sec. 6a-6. (1) Unless otherwise provided for in this
Section, all items of income received by the Illinois
Mathematics and Science Academy shall be deposited in a local
clearing account paid into the State Treasury without delay
and not later than 10 days after the receipt of such items of
income. All such moneys shall be paid into a special fund in
the State Treasury to be known as the "IMSA Income Fund". The
General Assembly shall from time to time make appropriations
payable from the IMSA Income Fund for the support and
improvement of the academy.
(2) The following items of income shall be retained by the
Illinois Mathematics and Science Academy in its own treasury:
endowment funds, gifts, and trust funds; alumni dues and
contributions; funds of any alumni association or
organization, or any foundation related to the Academy; monies
of the IMSA Fund for the Advancement of Education; funds
received in connection with the retention, receipt,

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assignment, license, sale or transfer of interests in, rights
to, or income from discoveries, inventions, patents, or
copyrightable works; laboratory fees, fees for testing;
supplementary food service fees received for payment to a food
service vendor; refundable deposits; funds received from
student or staff health programs; and moneys received for
student athletics or student activities.
The Academy may also retain in its own treasury all moneys
received from the sale of any debt obligations, including
bonds issued under the provisions of the Illinois Mathematics
and Science Academy Law, and any tuition, fee, and room and
board revenue pledged to the payment of such obligations or
necessary to meet any financial covenants related thereto or,
as determined by the Board of Trustees of the Academy,
necessary to pay such obligations or for the support and
improvement of the Academy.
Whenever such funds retained by the Academy in its own
treasury or held in a local clearing account are deposited
with a bank or savings and loan association and the amount of
the deposit exceeds the amount of federal deposit insurance
coverage, a bond or pledged securities shall be obtained. Only
the types of securities which the State treasurer may, in his
discretion, accept for amounts not insured by the Federal
Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation under Section 11 of "An Act in relation
to State moneys", approved June 28, 1919, as amended, may be

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accepted as pledged securities. The market value of the bond
or pledged securities shall at all times be equal to or greater
than the uninsured portion of the deposit.
(3) For purposes of implementing this Amendatory act of
1989, the Academy is authorized to transfer monies held in its
treasury at the time of the effective date of this Act into the
IMSA Income Fund in the State Treasury.
(4) The IMSA Special Purposes Trust Fund, held outside the
State Treasury by the State Treasurer as ex officio custodian,
shall receive the following items of income: federal aid and
funds received in connection with contracts with governmental,
public or private agencies or persons. Disbursements from this
fund shall be by warrants drawn by the State Comptroller on
receipt of vouchers duly executed and certified by the
Illinois Mathematics and Science Academy.
All federal monies received as reimbursement for
expenditures from the General Revenue Fund and that were made
for the purposes authorized for expenditures from the IMSA
Special Purposes Trust Fund shall be deposited by the Academy
into the General Revenue Fund.
For purposes of implementing this amendatory Act of 1991,
the Academy is authorized to transfer monies held in the IMSA
Income Fund on the effective date of this amendatory Act of
1991 into the IMSA Special Purposes Trust Fund; provided,
monies so transferred shall not exceed the amount that would
be in the IMSA Special Purposes Trust Fund had such Fund been

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in existence when the monies were received.
(Source: P.A. 86-109; 87-142.)
Section 10. The Bond Authorization Act is amended by
changing Section 1 as follows:
(30 ILCS 305/1) (from Ch. 17, par. 6601)
Sec. 1. (a) As used in this Act, "public corporations"
mean any body corporate organized by or pursuant to the laws of
this State to carry out a public governmental or proprietary
function, including, without limitation of the foregoing, the
State state, the Illinois Mathematics and Science Academy, or
any school district, park district, city, village,
incorporated town, county, drainage or any other type of
district, commission, authority, university, or public
community college, or any combination thereof, acting through
the corporate authorities thereof.
(b) "Bonds" or "other evidences of indebtedness" mean any
instrument providing for the payment of money executed by or
on behalf of a public corporation or which the public
corporation has assumed or agreed to pay, including, without
limitation of the foregoing, bonds, notes, contracts, leases,
certificates and tax anticipation warrants.
(Source: P.A. 82-622.)
Section 15. The Illinois Mathematics and Science Academy

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Law is amended by adding Section 4.5 as follows:
(105 ILCS 305/4.5 new)
Sec. 4.5. Revenue bond financing for facilities.
(a) The Board of Trustees is authorized to borrow money
and issue and sell bonds in such amount, at such price, and
redeemable prior to maturity with or without premium as the
Board may determine for the purpose of acquiring, purchasing,
completing, building, constructing, reconstructing,
enlarging, improving, extending, or equipping buildings,
structures, and facilities that, as determined by the Board,
are required by or are necessary for the use or benefit of the
Academy, including, without limiting the generality of the
foregoing, school classrooms, science labs, or other
instructional spaces; dormitories and student residence halls;
apartments; staff housing facilities; facilities for student,
staff, or administrative services; cafeteria and other food
service areas; auditoriums; gymnasiums, field houses,
stadiums, and other athletic facilities; and parking
facilities and including the acquisition and improvement of a
site or sites therefor. These bonds shall be payable only from
tuition, fee, and room and board revenue and, if authorized by
the Board, from other funds authorized by law to be used for
such purpose and applied as a supplement to that revenue. The
bonds shall be secured by a pledge of these revenues. The bonds
may be issued in one or more series, and may bear such date or

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dates, may be in such denomination or denominations, may
mature at such time or times not exceeding 40 years from the
respective dates thereof, may mature in such amount or
amounts, and may bear interest at such rate or rates,
including variable rates, not exceeding the maximum rate
authorized by the Bond Authorization Act at the time of the
making of the contract for the sale of the bonds.
All bonds issued under the provisions of this Section
shall be obligations of the Academy payable only in accordance
with the terms thereof and shall not be obligations, general,
special, or otherwise, of the State of Illinois. Such bonds
shall not constitute a debt, legal or moral, of the State of
Illinois and shall not be enforceable against the State of
Illinois.
(b) The Board shall have the power from time to time to
execute and deliver trust agreements under this Section to a
bank or trust company authorized by the laws of this State or
the United States of America to accept and execute trusts in
this State. These trust agreements may contain any provision
for the deposit with the trustee and the disposition of the
proceeds of the bonds issued under the provisions of this
Section and secured thereby, provisions for the protection and
the enforcement of the rights and remedies of the trustee and
the holders of such bonds as the Board may approve, and
provision for the direct payment to or deposit with the
trustee of any revenues pledged to the payment of bonds issued

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under the provisions of this Section.
(c) Bonds issued under the provisions of this Section
shall be signed by the chair of the Board and shall be attested
by the Director of the Academy, and if the official who signed
or attested the bonds or whose facsimile appears on the bonds
ceases to be such an official before the bonds have been issued
by the Academy, the bonds may nevertheless be validly issued
by the Academy.
(d) Upon the determination by the Board to undertake one
or more projects set forth in subsection (a), the Board shall
adopt a resolution or resolutions describing in a general way
the contemplated facility or facilities designated as the
project or projects and the estimated cost thereof. The amount
of bonds, the maturity or maturities, the interest rate, and
all details in respect thereof shall be set forth in the
resolution or resolutions or in a related trust agreement
authorized in subsection (b). The resolution or resolutions or
related trust agreement shall contain such covenants with
respect to the creation of reserves or accounts and any
restrictions upon the issuance of additional bonds that may
thereafter be issued payable from tuition, fee, and room and
board revenue and, if authorized by the Board, from other
funds authorized by law to be used for such purpose and applied
as a supplement to that revenue as may be deemed necessary or
advisable for the assurance and payment of the bonds thereby
authorized, and the resolution or resolutions or related trust

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agreement shall provide for the payment of the principal of
and interest on the bonds and the creation of any reserves or
accounts established by the resolution or resolutions.
(e) Whenever bonds are issued under the provisions of this
Section, it shall be the duty of the Board to establish
tuition, fee, and room and board revenue (i) sufficient at all
times to pay the principal of and interest on the bonds and to
meet any related financial covenants or (ii) sufficient at all
times, if added to other funds authorized and allocated for
such purpose, to pay such principal and interest and meet such
financial covenants.
(f) The Board may refund and refinance bonds issued under
the provisions of this Section from time to time and to this
end may authorize and issue refunding bonds whenever the Board
determines that it is in the best interests of the Academy to
do so. The proceeds derived from the sale of any such refunding
bonds shall be applied either to the payment or redemption and
retirement of the bonds to be refunded, or, if such bonds are
not then subject to payment or redemption, all proceeds
received at the sale thereof shall be invested in direct
obligations of or obligations the principal of and interest on
which are fully guaranteed by the United States of America, so
long as such investments mature at such time, with interest
thereon or profit therefrom, to provide funds adequate to pay,
when due or called for redemption prior to maturity, the bonds
to be refunded, together with the interest accrued thereon and

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any redemption premium due thereon. Such proceeds or
obligations of the United States of America shall, with all
other funds legally available for such purpose, be deposited
in escrow with any bank or trust company doing business in this
State with power to accept and execute trusts, to be held in an
irrevocable trust for the payment at maturity or redemption of
the bonds refunded and accrued interest and the applicable
premiums, if any, if the bonds are redeemable prior to
maturity or upon earlier voluntary surrender with the consent
of the holder thereof. Any balance remaining in such escrow
after the payment and retirement of the bonds to be refunded
shall be returned to the Academy, to be used as revenues
pledged for the payment of the refunding bonds. All of the
provisions of this Section, including covenants that may be
entered into in connection with the issuance of bonds, shall
be applicable to the authorization and issuance of any
refunding bonds.
Section 99. Effective date. This Act takes effect upon
becoming law.