HB0196 99TH GENERAL ASSEMBLY

LRB099 02702 SXM 22709 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0196

Introduced , by Rep. Scott Drury

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.866 new

Creates the Capital Improvement Planning Act. Provides that the Governor's Office of Management and Budget shall create a 5-year capital improvement plan, based on defined criteria to evaluate the State's capital improvement needs. Provides for the plan to have defined criteria for prioritizing projects. Amends the State Finance Act. Creates the Project Reserve Fund. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning capital improvement planning.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Capital Improvement Planning Act.

Section 5. Legislative intent; purpose.

(a) The General Assembly recognizes the need to establish a comprehensive process for capital improvement planning and budgeting that is fully integrated with State financial planning and debt management.

(b) The capital improvement planning and budgeting process shall include the following elements:

(1) An inventory of facilities owned by the State of Illinois.

(2) Criteria used to evaluate capital improvement needs.

(3) A 5-year capital improvement needs estimate.

(4) A 5-year capital improvements plan.

(5) Recommendations for capital improvements set forth in Section 50-10 of the State Budget Law of the Civil Administrative Code of Illinois.

(c) The Governor's Office Management and Budget has responsibility for management of the capital improvement planning process. The Director of the Governor's Office Management and Budget may assign to any State agency such duties and responsibilities as may, in the Director's judgment, be necessary to the successful administration of the capital improvement planning process.

Section 10. Definitions. As used in this Act:

"Department" means the Department of Central Management Services.

"Director" means the Director of the Governor's Office Management and Budget.

"Office" means the Governor's Office Management and Budget.

"State agency" has the meaning provided in Section 1.05 of the State Property Control Act.

"State university" means Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Southern Illinois University, the University of Illinois, or Western Illinois University.

Section 15. Capital facilities inventory. The Department shall develop and maintain an automated inventory of all facilities owned by the State of Illinois. The inventory shall include the location, occupying agency, ownership, size, description, condition assessment, maintenance record, parking and employee facilities, and other information to determine maintenance needs and prepare life cycle cost evaluations of each facility listed in the inventory. The Department shall update and publish the inventory at least once every 3 years. The Department shall also record in the inventory acquisitions of new facilities and significant changes in existing facilities as they occur.

Section 20. Capital improvement needs criteria. The Office shall develop a weighted list of factors that may be used to evaluate the need for capital improvement projects. The list must include, but is not limited to, the following:

(1) Preservation, adequacy, and use of existing facilities.

(2) Health and safety considerations.

(3) Operational efficiencies.

(4) Projected demand for governmental services.

Section 25. Agency capital improvement needs estimates.

(a) On or before September 1 of each year, each State agency shall submit to the Office and to the Commission on Government Forecasting and Accountability a 5-year capital improvement needs estimate. This estimate shall describe the agency's anticipated capital needs for each year of the 5-year planning period. Capital improvement needs estimates shall be shown in 2 parts, as provided in subsections (b) and (c) of this Section.

(b) The first part of the capital improvement needs estimates shall include only requirements for repairs and renovations necessary to maintain the existing use of existing facilities. Each proposed repair and renovation expenditure shall be justified by a cost benefit analysis and such other criteria as the Capital Development Board may by rule require.

(c) The second part of the capital improvement needs estimates shall include only proposals for real property acquisition and projects involving construction of new facilities or rehabilitation of existing facilities to accommodate uses for which the existing facilities were not originally designed. Each project included in this part shall be justified by a cost benefit analysis and such other criteria as the Director may require.

For capital projects of a State university, the Office shall utilize the needs evaluation information approved by the board of trustees of that State university.

Section 30. Five-year capital improvements plan.

(a) The State capital improvement plan shall address the long term capital improvement needs of all State agencies and shall incorporate all capital projects, however financed, proposed to meet those needs, except that transportation infrastructure projects shall be excluded. On or before December 31 of each year, the Director shall prepare and transmit to the General Assembly a 5-year capital improvement plan. When preparing the plan, the Director shall consider the capital improvement needs estimates submitted by State agencies. The plan shall be prepared in 2 parts, as provided in subsections (b) and (c) of this Section.

(b) The first part of the capital improvement plan shall set forth repair and renovations requirements that, in the judgment of the Director, should be met within each year of the 5-year planning period to protect and preserve existing capital improvement facilities. The plan shall identify individual projects in priority order by State agency and shall specify the means of financing for each project.

(c) The second part of the capital improvement plan shall set forth an integrated schedule for real property acquisition, new construction, or rehabilitation of existing facilities that, in the judgment of the Director, should be initiated within each year of the 5-year planning period. The plan shall contain for each project:

(1) estimates of real property acquisition, and construction or rehabilitation costs;

(2) a means of financing the project; and

(3) an estimated schedule for the completion of the project.

Where the means of financing would involve direct or indirect debt service obligations, a schedule of those obligations shall be presented.

Section 35. Recommendations for capital improvements.

(a) The Director shall recommend expenditures for repairs and renovations of existing facilities, and real property acquisition, new construction, or rehabilitation of existing facilities in the State Budget proposed by the Governor.

(b) The State Budget proposed by the Governor shall contain for repairs and renovations of existing facilities:

(1) the amount recommended for each State agency;

(2) a summary of the recommendations by project type; and

(3) the means of financing.

(c) The Budget Support Document shall contain for each repair and renovation project recommended in accordance with subsection (b) of this Section:

(1) a project description and justification;

(2) a detailed cost estimate;

(3) an estimated schedule for the completion of the project; and

(4) an explanation of the means of financing.

(d) The State Budget proposed by the Governor shall contain for each capital project involving real property acquisition, new construction, building area (expressed in square footage) expansions, or the rehabilitation of existing facilities to accommodate new or expanded uses:

(1) a project description and statement of need;

(2) an estimate of acquisition and construction or rehabilitation costs; and

(3) a means of financing the project.

(e) The Budget Support Document shall contain for each capital project recommended in accordance with subsection (d) of this Section:

(1) a detailed project description and justification;

(2) a detailed estimate of acquisition, planning, design, site development, construction, contingency and other related costs;

(3) an estimated schedule of cash flow requirements over the life of the project;

(4) an estimated schedule for the completion of the project;

(5) an estimate of maintenance and operating costs, including personnel, for the project, covering the first 5 years of operation;

(6) an estimate of revenues, if any, likely to be derived from the project, covering the first 5 years of operation; and

(7) an explanation of the means of financing.

Section 40. When a State agency may begin a capital improvement project. No State agency may expend funds for the construction or renovation of any capital improvement project except as needed to comply with this Act or as otherwise authorized by the General Assembly. Funds that become available by gifts, federal or private grants, receipts becoming a part of special funds by Act of the General Assembly, or any other funds available to a State agency or institution may be utilized for advanced planning through the working drawing phase of capital improvement projects, upon approval of the Director.

Section 45. When a State agency may increase the cost of a capital improvement project. Upon the request of the administration of a State agency, the Director may, when in the Director's opinion it is in the best interest of the State to do so, increase the cost of a capital improvement project. Provided, however, that if the Director increases the cost of a project, the Director shall immediately report that action by written message to the General Assembly. The increase may be funded from gifts, federal or private grants, special fund receipts, or direct capital improvement appropriations to that State agency.

Section 50. When a State agency may change the scope of a capital improvement project. A State agency may increase the scope of a capital improvement project only if the General Assembly authorizes the increase. A State agency may decrease the scope of a capital improvement project if the Director authorizes the decrease. To obtain the Director's authorization for a decrease in the scope of a capital improvement project, a State agency shall submit its request to the Director in writing and shall state the reason for the request.

Section 55. Project Reserve Fund.

(a) There is created the Project Reserve Fund as a special fund in the State treasury. When a construction contract is entered for a capital improvement project for which the General Assembly has enacted an appropriation, the appropriation is encumbered for the project's costs of real property acquisition, planning, design, site development, construction, contingencies, and other related costs. If the amount appropriated for the project exceeds the amount encumbered, the excess shall be credited to the Project Reserve Fund, unless otherwise required by law. The Director may authorize funds in the Fund to be used for any of the following:

(1) An emergency repair and renovation project at a State facility.

(2) The award of a project contract when bids for the contract exceed the amount appropriated for it if the project was designed within the scope intended by the appropriation and if the Director finds that all means to award the contract within the appropriation were reasonably attempted.

(3) A reversion to the principal fund from which revenue was appropriated for a project when the amount encumbered for the project is less than the amount appropriated.

(b) Whenever the Director authorizes the use of moneys from the Project Reserve Fund, the Director shall immediately report that action by written message to the General Assembly.

Section 60. Reversion of appropriation and lapse of project authorization.

(a) A State agency shall begin the planning of or the construction of an authorized capital improvement project during the fiscal year in which the funds are appropriated. If it does not, the Director may credit the appropriation to the Project Reserve Fund, unless otherwise required by law. If the Director does not credit the appropriation to the Project Reserve Fund, the appropriation shall revert to the principal fund from which it was appropriated. The Director may, for good cause, allow a State agency to take up to an additional 12 months to take the actions required by this subsection.

(b) Authorizations for capital improvement projects shall lapse if any of the following occur:

(1) the appropriation for a capital improvement project reverts;

(2) the construction of a project does not begin during the first 2 fiscal years in which funds are appropriated; or

(3) the Director redirects funds appropriated for a capital improvement project, where authorized to do so by the General Assembly.

The Director may, for good cause, allow a State agency to take up to an additional 12 months to begin construction of a project; however, if the Director approves an extension of time under this subsection and construction of the project has not begun by the end of the extension, the authorization for the project shall lapse.

Section 65. State university capital improvement projects from sources that are not General Fund sources; approval of new project or change in scope of existing project. Notwithstanding any other provision of this Act, the board of trustees of a State university may approve:

(1) expenditures to plan a capital improvement project of that State university the planning for which is to be funded entirely with non-General Fund money;

(2) expenditures for a capital improvement project of that State university that is to be funded and operated entirely with non-General Fund money; or

(3) a change in the scope of any previously approved capital improvement project of that State university, provided that both the project and change in scope are funded entirely with non-General Fund money.

The board of trustees of that State university shall report any expenditure made pursuant to this section to the Office and to the Commission on Government Forecasting and Accountability.

Section 70. The State Finance Act is amended by adding Section 5.866 as follows:

(30 ILCS 105/5.866 new)

Sec. 5.866. The Project Reserve Fund.

Section 99. Effective date. This Act takes effect upon becoming law.