Full Text of SB0041 100th General Assembly
SB0041ham001 100TH GENERAL ASSEMBLY | Rep. Barbara Flynn Currie Filed: 5/23/2017
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| 1 | | AMENDMENT TO SENATE BILL 41
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 41 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Procurement Code is amended by | 5 | | changing Sections 20-60, 25-45, and 40-25 as follows: | 6 | | (30 ILCS 500/20-60) | 7 | | Sec. 20-60. Duration of contracts. | 8 | | (a) Maximum duration. A contract , other than a contract | 9 | | entered into pursuant to the State University Certificates of | 10 | | Participation Act, may be entered into for
any period of time | 11 | | deemed
to be in the best interests of the State but not
| 12 | | exceeding 10 years inclusive, beginning January 1, 2010, of | 13 | | proposed contract renewals. The length of
a lease for real | 14 | | property or capital improvements shall be in
accordance with | 15 | | the provisions of
Section 40-25. The length of energy | 16 | | conservation program contracts or energy savings contracts or |
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| 1 | | leases shall be in accordance with the provisions of Section | 2 | | 25-45. A contract for bond or mortgage insurance awarded by the | 3 | | Illinois Housing Development Authority, however, may be | 4 | | entered into for any period of time less than or equal to the | 5 | | maximum period of time that the subject bond or mortgage may | 6 | | remain outstanding.
| 7 | | (b) Subject to appropriation. All contracts made or entered
| 8 | | into shall recite that they are
subject to termination and | 9 | | cancellation in any year for which the
General Assembly fails | 10 | | to make
an appropriation to make payments under the terms of | 11 | | the contract. | 12 | | (c) The chief procurement officer shall file a proposed | 13 | | extension or renewal of a contract with the Procurement Policy | 14 | | Board prior to entering into any extension or renewal if the | 15 | | cost associated with the extension or renewal exceeds $249,999. | 16 | | The Procurement Policy Board may object to the proposed | 17 | | extension or renewal within 30 calendar days and require a | 18 | | hearing before the Board prior to entering into the extension | 19 | | or renewal. If the Procurement Policy Board does not object | 20 | | within 30 calendar days or takes affirmative action to | 21 | | recommend the extension or renewal, the chief procurement | 22 | | officer may enter into the extension or renewal of a contract. | 23 | | This subsection does not apply to any emergency procurement, | 24 | | any procurement under Article 40, or any procurement exempted | 25 | | by Section 1-10(b) of this Code. If any State agency contract | 26 | | is paid for in whole or in part with federal-aid funds, grants, |
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| 1 | | or loans and the provisions of this subsection would result in | 2 | | the loss of those federal-aid funds, grants, or loans, then the | 3 | | contract is exempt from the provisions of this subsection in | 4 | | order to remain eligible for those federal-aid funds, grants, | 5 | | or loans, and the State agency shall file notice of this | 6 | | exemption with the Procurement Policy Board prior to entering | 7 | | into the proposed extension or renewal. Nothing in this | 8 | | subsection permits a chief procurement officer to enter into an | 9 | | extension or renewal in violation of subsection (a). By August | 10 | | 1 each year, the Procurement Policy Board shall file a report | 11 | | with the General Assembly identifying for the previous fiscal | 12 | | year (i) the proposed extensions or renewals that were filed | 13 | | with the Board and whether the Board objected and (ii) the | 14 | | contracts exempt from this subsection. | 15 | | (Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09; | 16 | | 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the | 17 | | effective date of changes made by P.A. 96-795); 96-920, eff. | 18 | | 7-1-10; 96-1478, eff. 8-23-10.)
| 19 | | (30 ILCS 500/25-45)
| 20 | | Sec. 25-45. Energy conservation program contracts; energy | 21 | | savings contracts or leases . | 22 | | (a) For the purposes of this Section, an "energy savings | 23 | | contract or lease" means a contract or lease for an | 24 | | improvement, repair, alteration, betterment, equipment, | 25 | | fixture, or furnishing that is designed to reduce energy |
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| 1 | | consumption or operating costs, and that includes an agreement | 2 | | that payments, except obligations on termination of the | 3 | | contract or lease before its expiration, shall be made over | 4 | | time and that savings are guaranteed to the extent practicable | 5 | | to pay for the cost of the improvement, repair, alteration, | 6 | | betterment, equipment, fixture, or furnishing. | 7 | | (b) State
purchasing officers may enter into
energy | 8 | | conservation program contracts or energy savings contracts or | 9 | | leases that provide for utility
cost savings. Notwithstanding | 10 | | any other law to the contrary, energy savings contracts or | 11 | | leases may include an alternative financing or lease to | 12 | | purchase option. | 13 | | (c) Energy conservation program contracts or energy | 14 | | savings contracts and leases may entered into for a period of | 15 | | time deemed to be in the best interest of the State but not | 16 | | exceeding 15 years inclusive of proposed contract or lease | 17 | | renewals. | 18 | | (d) The chief procurement officer shall
promulgate and | 19 | | adopt rules for the implementation of this Section.
| 20 | | (Source: P.A. 90-572, eff. date - See Sec. 99-5.)
| 21 | | (30 ILCS 500/40-25)
| 22 | | Sec. 40-25. Length of leases.
| 23 | | (a) Maximum term. Leases shall be for a term not to exceed
| 24 | | 10 years inclusive, beginning January, 1, 2010, of proposed | 25 | | contract renewals and shall include
a termination option in |
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| 1 | | favor of the State after 5 years. The length of energy | 2 | | conservation program contracts or energy savings contracts or | 3 | | leases shall be in accordance with the provisions of Section | 4 | | 25-45.
| 5 | | (b) Renewal. Leases may include a renewal option. An
option | 6 | | to renew may be
exercised only when a State purchasing officer | 7 | | determines in
writing that renewal is in the best
interest of | 8 | | the State and notice of the exercise of the option is published | 9 | | in
the appropriate volume of the Procurement Bulletin at least | 10 | | 60 calendar days prior to
the exercise of the option.
| 11 | | (c) Subject to appropriation. All leases shall recite that
| 12 | | they are subject to termination
and cancellation in any year | 13 | | for which the General Assembly fails
to make an appropriation | 14 | | to
make payments under the terms of the lease.
| 15 | | (d) Holdover. Beginning January 1, 2010, no lease may | 16 | | continue on a month-to-month or other holdover basis for a | 17 | | total of more than 6 months. Beginning July 1, 2010, the | 18 | | Comptroller shall withhold payment of leases beyond this | 19 | | holdover period. | 20 | | (Source: P.A. 98-1076, eff. 1-1-15 .)
| 21 | | Section 10. The Illinois Municipal Code is amended by | 22 | | adding Division 13 to Article 8 as follows: | 23 | | (65 ILCS 5/Art. 8 Div. 13 heading new) | 24 | | DIVISION 13. ASSIGNMENT OF RECEIPTS |
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| 1 | | (65 ILCS 5/8-13-5 new) | 2 | | Sec. 8-13-5. Definitions. As used in this Article: | 3 | | "Assignment agreement" means an agreement between a | 4 | | transferring unit and an issuing entity for the conveyance of | 5 | | all or part of any revenues or taxes received by the | 6 | | transferring unit from a State entity. | 7 | | "Conveyance" means an assignment, sale, transfer, or other | 8 | | conveyance. | 9 | | "Deposit account" means a designated escrow account | 10 | | established by an issuing entity at a trust company or bank | 11 | | having trust powers for the deposit of transferred receipts | 12 | | under an assignment agreement. | 13 | | "Issuing entity" means (i) a corporation, trust or other | 14 | | entity that has been established for the limited purpose of | 15 | | issuing obligations for the benefit of a transferring unit, or | 16 | | (ii) a bank or trust company in its capacity as trustee for | 17 | | obligations issued by such bank or trust company for the | 18 | | benefit of a transferring unit. | 19 | | "State entity" means the State Comptroller, the State | 20 | | Treasurer, or the Illinois Department of Revenue. | 21 | | "Transferred receipts" means all or part of any revenues or | 22 | | taxes received from a State entity that have been conveyed by a | 23 | | transferring unit under an assignment agreement. | 24 | | "Transferring unit" means a home rule municipality located | 25 | | in the State. |
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| 1 | | (65 ILCS 5/8-13-10 new) | 2 | | Sec. 8-13-10. Assignment of receipts. | 3 | | (a) Any transferring unit which receives revenues or taxes | 4 | | from a State entity may (to the extent not prohibited by any | 5 | | applicable statute, regulation, rule, or agreement governing | 6 | | the use of such revenues or taxes) authorize, by ordinance, the | 7 | | conveyance of all or any portion of such revenues or taxes to | 8 | | an issuing entity. Any conveyance of transferred receipts | 9 | | shall: (i) be made pursuant to an assignment agreement in | 10 | | exchange for the net proceeds of obligations issued by the | 11 | | issuing entity for the benefit of the transferring unit and | 12 | | shall, for all purposes, constitute an absolute conveyance of | 13 | | all right, title, and interest therein; (ii) not be deemed a | 14 | | pledge or other security interest for any borrowing by the | 15 | | transferring unit; (iii) be valid, binding, and enforceable in | 16 | | accordance with the terms thereof and of any related | 17 | | instrument, agreement, or other arrangement, including any | 18 | | pledge, grant of security interest, or other encumbrance made | 19 | | by the issuing entity to secure any obligations issued by the | 20 | | issuing entity for the benefit of the transferring unit; and | 21 | | (iv) not be subject to disavowal, disaffirmance, cancellation, | 22 | | or avoidance by reason of insolvency of any party, lack of | 23 | | consideration, or any other fact, occurrence, or State law or | 24 | | rule. On and after the effective date of the conveyance of the | 25 | | transferred receipts, the transferring unit shall have no |
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| 1 | | right, title or interest in or to the transferred receipts | 2 | | conveyed and the transferred receipts so conveyed shall be the | 3 | | property of the issuing entity to the extent necessary to pay | 4 | | the obligations issued by the issuing entity for the benefit of | 5 | | the transferring unit, and shall be received, held, and | 6 | | disbursed by the issuing entity in a trust fund outside the | 7 | | treasury of the transferring unit. An assignment agreement may | 8 | | provide for the periodic reconveyance to the transferring unit | 9 | | of amounts of transferred receipts remaining after the payment | 10 | | of the obligations issued by the issuing entity for the benefit | 11 | | of the transferring unit. | 12 | | (b) In connection with any conveyance of transferred | 13 | | receipts, the transferring unit is authorized to direct the | 14 | | applicable State entity to deposit or cause to be deposited any | 15 | | amount of such transferred receipts into a deposit account in | 16 | | order to secure the obligations issued by the issuing entity | 17 | | for the benefit of the transferring unit. Where the | 18 | | transferring unit states that such direction is irrevocable, | 19 | | the direction shall be treated by the applicable State entity | 20 | | as irrevocable with respect to the transferred receipts | 21 | | described in such direction. Each State entity shall comply | 22 | | with the terms of any such direction received from a | 23 | | transferring unit and shall execute and deliver such | 24 | | acknowledgments and agreements, including escrow and similar | 25 | | agreements, as the transferring unit may require to effectuate | 26 | | the deposit of transferred receipts in accordance with the |
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| 1 | | direction of the transferring unit. | 2 | | (c) Not later than the date of issuance by an issuing | 3 | | entity of any obligations secured by collections of transferred | 4 | | receipts, a certified copy of the ordinance authorizing the | 5 | | conveyance of the right to receive the transferred receipts, | 6 | | together with executed copies of the applicable assignment | 7 | | agreement and the agreement providing for the establishment of | 8 | | the deposit account, shall be filed with the State entity | 9 | | having custody of the transferred receipts. | 10 | | (65 ILCS 5/8-13-11 new) | 11 | | Sec. 8-13-11. Liens for obligations. | 12 | | (a) As used in this Section, "statutory lien" has the | 13 | | meaning given to that term under 11 U.S.C. 101(53) of the | 14 | | federal Bankruptcy Code. | 15 | | (b) Obligations issued by an issuing entity shall be | 16 | | secured by a statutory lien on the transferred receipts | 17 | | received, or entitled to be received, by the issuing entity | 18 | | that are designated as pledged for such obligations. The | 19 | | statutory lien shall automatically attach from the time the | 20 | | obligations are issued without further action or authorization | 21 | | by the issuing entity or any other entity, person, governmental | 22 | | authority, or officer. The statutory lien shall be valid and | 23 | | binding from the time the obligations are executed and | 24 | | delivered without any physical delivery thereof or further act | 25 | | required, and shall be a first priority lien unless the |
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| 1 | | obligations, or documents authorizing the obligations or | 2 | | providing a source of payment or security for those | 3 | | obligations, shall otherwise provide. | 4 | | The transferred receipts received or entitled to be | 5 | | received shall be immediately subject to the statutory lien | 6 | | from the time the obligations are issued, and the statutory | 7 | | lien shall automatically attach to the transferred receipts | 8 | | (whether received or entitled to be received by the issuing | 9 | | entity) and be effective, binding, and enforceable against the | 10 | | issuing entity, the transferring unit, the State entity, the | 11 | | State of Illinois, and their agents, successors, and | 12 | | transferees, and creditors, and all others asserting rights | 13 | | therein or having claims of any kind in tort, contract, or | 14 | | otherwise, irrespective of whether those parties have notice of | 15 | | the lien and without the need for any physical delivery, | 16 | | recordation, filing, or further act. | 17 | | The statutory lien imposed by this Section is automatically | 18 | | released and discharged with respect to amounts of transferred | 19 | | receipts reconveyed to the transferring unit pursuant to | 20 | | Section 8-13-10 of this Code, effective upon such reconveyance. | 21 | | (c) The statutory lien provided in this Section is separate | 22 | | from and shall not affect any special revenues lien or other | 23 | | protection afforded to special revenue obligations under the | 24 | | federal Bankruptcy Code. | 25 | | (65 ILCS 5/8-13-15 new) |
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| 1 | | Sec. 8-13-15. Pledges and agreements of the State. The | 2 | | State of Illinois pledges to and agrees with each transferring | 3 | | unit and issuing entity that the State will not limit or alter | 4 | | the rights and powers vested in the State entities by this | 5 | | Article with respect to the disposition of transferred receipts | 6 | | so as to impair the terms of any contract, including any | 7 | | assignment agreement, made by the transferring unit with the | 8 | | issuing entity or any contract executed by the issuing entity | 9 | | in connection with the issuance of obligations by the issuing | 10 | | entity for the benefit of the transferring unit until all | 11 | | requirements with respect to the deposit by such State entity | 12 | | of transferred receipts for the benefit of such issuing entity | 13 | | have been fully met and discharged. In addition, the State | 14 | | pledges to and agrees with each transferring unit and each | 15 | | issuing entity that the State will not limit or alter the basis | 16 | | on which the transferring unit's share or percentage of | 17 | | transferred receipts is derived, or the use of such funds, so | 18 | | as to impair the terms of any such contract. Each transferring | 19 | | unit and issuing entity is authorized to include these pledges | 20 | | and agreements of the State in any contract executed and | 21 | | delivered as described in this Article. In no way shall the | 22 | | pledge and agreements of the State be interpreted to construe | 23 | | the State as a guarantor of any debt or obligation subject to | 24 | | an assignment agreement under this Division. | 25 | | (65 ILCS 5/8-13-20 new) |
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| 1 | | Sec. 8-13-20. Home rule. A home rule unit may not enter | 2 | | into assignment agreements in a manner inconsistent with the | 3 | | provisions of this Article. This Section is a limitation under | 4 | | subsection (i) of Section 6 of
Article VII of the Illinois | 5 | | Constitution on the concurrent exercise by home rule units of
| 6 | | powers and functions exercised by the State.
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.".
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