99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2790

 

Introduced 2/17/2016, by Sen. Gary Forby

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 605/1.02  from Ch. 127, par. 133b3
110 ILCS 520/7  from Ch. 144, par. 657
110 ILCS 520/8  from Ch. 144, par. 658

    Amends the State Property Control Act and the Southern Illinois University Management Act. Allows the Board of Trustees of Southern Illinois University to sell, lease, or otherwise transfer and convey all or part of real estate deemed by the Board to be surplus real estate, together with the improvements situated thereon, to a bona fide purchaser for value without compliance with the State Property Control Act and on such terms as the Board shall determine are in the best interests of the University and consistent with the University's objects and purposes. Allows the Board to retain the proceeds from the sale, lease, or other transfer of all or any part of the real estate deemed surplus real estate and the improvements situated thereon in the University treasury in a separate student scholarship fund account that the Auditor General shall examine to ensure the use or deposit of those proceeds in a manner consistent with the purposes of that student scholarship fund account. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Property Control Act is amended by
5changing Section 1.02 as follows:
 
6    (30 ILCS 605/1.02)  (from Ch. 127, par. 133b3)
7    Sec. 1.02. "Property" means State owned property and
8includes all real estate, with the exception of rights of way
9for State water resource and highway improvements, traffic
10signs and traffic signals, and with the exception of common
11school property; and all tangible personal property with the
12exception of properties specifically exempted by the
13administrator, provided that any property originally
14classified as real property which has been detached from its
15structure shall be classified as personal property.
16    "Property" does not include property owned by the Illinois
17Medical District Commission and leased or occupied by others
18for purposes permitted under the Illinois Medical District Act.
19"Property" also does not include property owned and held by the
20Illinois Medical District Commission for redevelopment.
21    "Property" does not include property described under
22Section 5 of Public Act 92-371 with respect to depositing the
23net proceeds from the sale or exchange of the property as

 

 

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1provided in Section 10 of that Act.
2    "Property" does not include that property described under
3Section 5 of Public Act 94-405.
4    "Property" does not include real property owned or operated
5by the Illinois Power Agency or any electricity generated on
6that real property or by the Agency. For purposes of this
7subsection only, "real property" includes any interest in land,
8all buildings and improvements located thereon, and all
9fixtures and equipment used or designed for the production and
10transmission of electricity located thereon.
11    "Property" does not include real estate that the Board of
12Trustees of Southern Illinois University has deemed surplus
13real estate under item 12.5 of Section 8 of the Southern
14Illinois University Management Act or the improvements
15situated on that real estate.
16(Source: P.A. 94-405, eff. 8-2-05; 95-331, eff. 8-21-07;
1795-481, eff. 8-28-07.)
 
18    Section 10. The Southern Illinois University Management
19Act is amended by changing Sections 7 and 8 as follows:
 
20    (110 ILCS 520/7)  (from Ch. 144, par. 657)
21    Sec. 7. The Board shall have power to enter into contracts,
22to sue and be sued, provided that any suit against the Board
23based upon a claim sounding in tort must be filed in the Court
24of Claims, to acquire, hold and convey real property as it

 

 

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1shall deem appropriate and personal property in accordance with
2the State Property Control Act, except as otherwise provided in
3item 12.5 of Section 8 of this Act, and to expend the funds
4appropriated to the University; provided that the Board in the
5exercise of the powers conferred by this Act shall not create
6any liability or indebtedness of funds from the Treasury of the
7State in excess of the funds appropriated to the University.
8    Any lease to the Board of lands, buildings or facilities
9which will support scientific research and development in such
10areas as high technology, super computing, microelectronics,
11biotechnology, robotics, physics and engineering shall be for a
12term not to exceed 18 years, and may grant to the Board the
13option to purchase the lands, buildings or facilities. The
14lease shall recite that it is subject to termination and
15cancellation in any year for which the General Assembly fails
16to make an appropriation to pay the rent payable under the
17terms of the lease.
18    Leases for the purposes described herein exceeding 5 years
19shall have the approval of the Illinois Board of Higher
20Education.
21    The Board's power to enter into contracts includes but is
22not limited to the power to enter into contracts with
23municipalities within which the university or any branch
24thereof is located, in whole or in part, for such municipality
25to provide fire protection or other essential municipal
26services upon properties leased to for-profit entities the

 

 

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1title to which properties is held by the Board.
2(Source: P.A. 84-780.)
 
3    (110 ILCS 520/8)  (from Ch. 144, par. 658)
4    Sec. 8. Powers and Duties of the Board. The Board shall
5have power and it shall be its duty:
6        1. To make rules, regulations and by-laws, not
7    inconsistent with law, for the government and management of
8    Southern Illinois University and its branches.
9        2. To employ, and, for good cause, to remove a
10    president of Southern Illinois University, and all
11    necessary deans, professors, associate professors,
12    assistant professors, instructors, and other educational
13    and administrative assistants, and all other necessary
14    employees, and contract with them upon matters relating to
15    tenure, salaries and retirement benefits in accordance
16    with the State Universities Civil Service Act; the Board
17    shall, upon the written request of an employee of Southern
18    Illinois University, withhold from the compensation of
19    that employee any dues, payments or contributions payable
20    by such employee to any labor organization as defined in
21    the Illinois Educational Labor Relations Act. Under such
22    arrangement, an amount shall be withheld from each regular
23    payroll period which is equal to the pro rata share of the
24    annual dues plus any payments or contributions, and the
25    Board shall transmit such withholdings to the specified

 

 

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1    labor organization within 10 working days from the time of
2    the withholding. Whenever the Board establishes a search
3    committee to fill the position of president of Southern
4    Illinois University, there shall be minority
5    representation, including women, on that search committee.
6        3. To prescribe the course of study to be followed, and
7    textbooks and apparatus to be used at Southern Illinois
8    University.
9        4. To issue upon the recommendation of the faculty,
10    diplomas to such persons as have satisfactorily completed
11    the required studies of Southern Illinois University, and
12    confer such professional and literary degrees as are
13    usually conferred by other institutions of like character
14    for similar or equivalent courses of study, or such as the
15    Board may deem appropriate.
16        5. To examine into the conditions, management, and
17    administration of Southern Illinois University, to provide
18    the requisite buildings, apparatus, equipment and
19    auxiliary enterprises, and to fix and collect
20    matriculation fees; tuition fees; fees for student
21    activities; fees for student facilities such as student
22    union buildings or field houses or stadium or other
23    recreational facilities; student welfare fees; laboratory
24    fees and similar fees for supplies and material.
25        6. To succeed to and to administer all trusts, trust
26    property, and gifts now or hereafter belonging or

 

 

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1    pertaining to Southern Illinois University.
2        7. To accept endowments of professorships or
3    departments in the University from any person who may
4    proffer them and, at regular meetings, to prescribe rules
5    and regulations in relation to endowments and declare on
6    what general principles they may be accepted.
7        8. To enter into contracts with the Federal government
8    for providing courses of instruction and other services at
9    Southern Illinois University for persons serving in or with
10    the military or naval forces of the United States, and to
11    provide such courses of instruction and other services.
12        9. To provide for the receipt and expenditures of
13    Federal funds, paid to the Southern Illinois University by
14    the Federal government for instruction and other services
15    for persons serving in or with the military or naval forces
16    of the United States and to provide for audits of such
17    funds.
18        10. To appoint, subject to the applicable civil service
19    law, persons to be members of the Southern Illinois
20    University Police Department. Members of the Police
21    Department shall be conservators of the peace and as such
22    have all powers possessed by policemen in cities, and
23    sheriffs, including the power to make arrests on view or
24    warrants of violations of state statutes, university rules
25    and regulations and city or county ordinances, except that
26    they may exercise such powers only within counties wherein

 

 

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1    the university and any of its branches or properties are
2    located when such is required for the protection of
3    university properties and interests, and its students and
4    personnel, and otherwise, within such counties, when
5    requested by appropriate State or local law enforcement
6    officials. However, such officers shall have no power to
7    serve and execute civil processes.
8        The Board must authorize to each member of the Southern
9    Illinois University Police Department and to any other
10    employee of Southern Illinois University exercising the
11    powers of a peace officer a distinct badge that, on its
12    face, (i) clearly states that the badge is authorized by
13    Southern Illinois University and (ii) contains a unique
14    identifying number. No other badge shall be authorized by
15    Southern Illinois University.
16        10.5. To conduct health care programs in furtherance of
17    its teaching, research, and public service functions,
18    which shall include without limitation patient and
19    ancillary facilities, institutes, clinics, or offices
20    owned, leased, or purchased through an equity interest by
21    the Board or its appointed designee to carry out such
22    activities in the course of or in support of the Board's
23    academic, clinical, and public service responsibilities.
24        11. To administer a plan or plans established by the
25    clinical faculty of the School of Medicine for the billing,
26    collection and disbursement of charges for services

 

 

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1    performed in the course of or in support of the faculty's
2    academic responsibilities, provided that such plan has
3    been first approved by Board action. All such collections
4    shall be deposited into a special fund or funds
5    administered by the Board from which disbursements may be
6    made according to the provisions of said plan. The
7    reasonable costs incurred, by the University,
8    administering the billing, collection and disbursement
9    provisions of a plan shall have first priority for payment
10    before distribution or disbursement for any other purpose.
11    Audited financial statements of the plan or plans must be
12    provided to the Legislative Audit Commission annually.
13        The Board of Trustees may own, operate, or govern, by
14    or through the School of Medicine, a managed care community
15    network established under subsection (b) of Section 5-11 of
16    the Illinois Public Aid Code.
17        12. The Board of Trustees may, directly or in
18    cooperation with other institutions of higher education,
19    acquire by purchase or lease or otherwise, and construct,
20    enlarge, improve, equip, complete, operate, control and
21    manage medical research and high technology parks,
22    together with the necessary lands, buildings, facilities,
23    equipment, and personal property therefor, to encourage
24    and facilitate (a) the location and development of business
25    and industry in the State of Illinois, and (b) the
26    increased application and development of technology and

 

 

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1    (c) the improvement and development of the State's economy.
2    The Board of Trustees may lease to nonprofit corporations
3    all or any part of the land, buildings, facilities,
4    equipment or other property included in a medical research
5    and high technology park upon such terms and conditions as
6    the Board of Trustees may deem advisable and enter into any
7    contract or agreement with such nonprofit corporations as
8    may be necessary or suitable for the construction,
9    financing, operation and maintenance and management of any
10    such park; and may lease to any person, firm, partnership
11    or corporation, either public or private, any part or all
12    of the land, building, facilities, equipment or other
13    property of such park for such purposes and upon such
14    rentals, terms and conditions as the Board of Trustees may
15    deem advisable; and may finance all or part of the cost of
16    any such park, including the purchase, lease,
17    construction, reconstruction, improvement, remodeling,
18    addition to, and extension and maintenance of all or part
19    of such high technology park, and all equipment and
20    furnishings, by legislative appropriations, government
21    grants, contracts, private gifts, loans, receipts from the
22    operation of such high technology park, rentals and similar
23    receipts; and may make its other facilities and services
24    available to tenants or other occupants of any such park at
25    rates which are reasonable and appropriate.
26        12.5. To assist in the provision of lands, buildings,

 

 

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1    and facilities that are supportive of the University's
2    purposes and suitable and appropriate for the conduct and
3    operation of the University's education programs as
4    follows:
5            A. The Board may sell, lease, or otherwise transfer
6        and convey all or part of real estate deemed by the
7        Board to be surplus real estate, together with the
8        improvements situated thereon, to a bona fide
9        purchaser for value without compliance with the State
10        Property Control Act and on such terms as the Board
11        shall determine are in the best interests of the
12        University and consistent with the University's
13        objects and purposes.
14            B. The Board may retain the proceeds from the sale,
15        lease, or other transfer of all or any part of the real
16        estate deemed surplus real estate under clause (A) of
17        this item 12.5 and the improvements situated thereon in
18        the University treasury in a separate student
19        scholarship fund account that the Auditor General
20        shall examine to ensure the use or deposit of those
21        proceeds in a manner consistent with the purposes of
22        that student scholarship fund account.
23        13. To borrow money, as necessary, from time to time in
24    anticipation of receiving tuition, payments from the State
25    of Illinois, or other revenues or receipts of the
26    University, also known as anticipated moneys. The

 

 

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1    borrowing limit shall be capped at 100% of the total amount
2    of payroll and other expense vouchers submitted and payable
3    to the University for fiscal year 2010 expenses, but unpaid
4    by the State Comptroller's office. Prior to borrowing any
5    funds, the University shall request from the Comptroller's
6    office a verification of the borrowing limit and shall
7    include the estimated date on which such borrowing shall
8    occur. The borrowing limit cap shall be verified by the
9    State Comptroller's office not prior to 45 days before any
10    estimated date for executing any promissory note or line of
11    credit established under this item 13. The principal amount
12    borrowed under a promissory note or line of credit shall
13    not exceed 75% of the borrowing limit. Within 15 days after
14    borrowing funds under any promissory note or line of credit
15    established under this item 13, the University shall submit
16    to the Governor's Office of Management and Budget, the
17    Speaker of the House of Representatives, the Minority
18    Leader of the House of Representatives, the President of
19    the Senate, and the Minority Leader of the Senate an
20    Emergency Short Term Cash Management Plan. The Emergency
21    Short Term Cash Management Plan shall outline the amount
22    borrowed, the terms for repayment, the amount of
23    outstanding State vouchers as verified by the State
24    Comptroller's office, and the University's plan for
25    expenditure of any borrowed funds, including, but not
26    limited to, a detailed plan to meet payroll obligations to

 

 

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1    include collective bargaining employees, civil service
2    employees, and academic, research, and health care
3    personnel. The establishment of any promissory note or line
4    of credit established under this item 13 must be finalized
5    within 90 days after the effective date of this amendatory
6    Act of the 96th General Assembly. The borrowed moneys shall
7    be applied to the purposes of paying salaries and other
8    expenses lawfully authorized in the University's State
9    appropriation and unpaid by the State Comptroller. Any line
10    of credit established under this item 13 shall be paid in
11    full one year after creation or within 10 days after the
12    date the University receives reimbursement from the State
13    for all submitted fiscal year 2010 vouchers, whichever is
14    earlier. Any promissory note established under this item 13
15    shall be repaid within one year after issuance of the note.
16    The Chairman, Comptroller, or Treasurer of the Board shall
17    execute a promissory note or similar debt instrument to
18    evidence the indebtedness incurred by the borrowing. In
19    connection with a borrowing, the Board may establish a line
20    of credit with a financial institution, investment bank, or
21    broker/dealer. The obligation to make the payments due
22    under any promissory note or line of credit established
23    under this item 13 shall be a lawful obligation of the
24    University payable from the anticipated moneys. Any
25    borrowing under this item 13 shall not constitute a debt,
26    legal or moral, of the State and shall not be enforceable

 

 

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1    against the State. The promissory note or line of credit
2    shall be authorized by a resolution passed by the Board and
3    shall be valid whether or not a budgeted item with respect
4    to that resolution is included in any annual or
5    supplemental budget adopted by the Board. The resolution
6    shall set forth facts demonstrating the need for the
7    borrowing, state an amount that the amount to be borrowed
8    will not exceed, and establish a maximum interest rate
9    limit not to exceed the maximum rate authorized by the Bond
10    Authorization Act or 9%, whichever is less. The resolution
11    may direct the Comptroller or Treasurer of the Board to
12    make arrangements to set apart and hold the portion of the
13    anticipated moneys, as received, that shall be used to
14    repay the borrowing, subject to any prior pledges or
15    restrictions with respect to the anticipated moneys. The
16    resolution may also authorize the Treasurer of the Board to
17    make partial repayments of the borrowing as the anticipated
18    moneys become available and may contain any other terms,
19    restrictions, or limitations not inconsistent with the
20    powers of the Board.
21        For the purposes of this item 13, "financial
22    institution" means any bank subject to the Illinois Banking
23    Act, any savings and loan association subject to the
24    Illinois Savings and Loan Act of 1985, and any federally
25    chartered commercial bank or savings and loan association
26    or government-sponsored enterprise organized and operated

 

 

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1    in this State pursuant to the laws of the United States.
2    The powers of the Board as herein designated are subject to
3the Board of Higher Education Act.
4(Source: P.A. 96-909, eff. 6-8-10; 97-333, eff. 8-12-11.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.