Bill Text: IL HB3927 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Reinserts the provisions of the introduced bill with the following changes. In the Public-Private Partnerships Act: Provides that each facility project awarded by a responsible public entity shall be performed pursuant to the requirements of the Illinois Prevailing Wage Act (rather than pay wages pursuant to prevailing standards). Provides that any public-private agreement entered into under a public-private partnership between a vendor and a responsible public entity pertaining to the building, altering, repairing, maintaining, improving, or demolishing of a facility shall require any contractor and all subcontractors to comply with the Illinois Procurement Code. Provides that a public-private agreement project shall require the contractor and all subcontractors to enter into a project labor agreement utilized by the Department of Labor and evidence that the contractor or subcontractor has entered into a fully executed project labor agreement with the applicable local building trades council. Provides that any public-private agreement entered into under a public-private partnership between a vendor and a responsible public entity shall include a provision requiring the selected vendor to enter into a labor peace agreement with any bona fide labor organization, including any bona fide labor organization that represents or is attempting to represent any of its employees necessary for the ongoing maintenance and operation of such agreement. Amends the Prevailing Wage Act. Provides that "public works" shall include all work performed pursuant to a public-private agreement under the Public-Private Partnerships Act.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-05-04 - Added Chief Co-Sponsor Rep. Anne Stava-Murray [HB3927 Detail]

Download: Illinois-2023-HB3927-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3927 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
New Act
5 ILCS 140/7.5
30 ILCS 235/2 from Ch. 85, par. 902
Creates the Public-Private Partnerships Act. Provides that the intent of the Act, among others, is to authorize responsible public entities to develop and enter into public-private partnership agreements for qualifying projects which result in the availability of such projects to the public in a more timely and less costly fashion, thereby serving the public safety, benefit, and welfare. Creates the Infrastructure Investment Commission, including its membership and duties. Establishes the qualifications and processes related to unsolicited proposals for projects that become public-private agreements for the building, upgrading, providing of services, operating, ownership or financing of facilities. Sets forth the procedures and standards for the formation of public-private agreements between public and private entities, including the powers of the entities and the provisions of the agreements. Establishes development and operation standards for projects. Includes provisions related to the taxation and financial arrangements related to public-private partnerships. Sets forth additional provisions related to: the acquisition of property; law enforcement; and additional powers of responsible public entities with respect to qualifying projects. Makes conforming changes in the Freedom of Information Act and the Public Funds Investment Act.
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A BILL FOR
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AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1. Purpose; Authority
Section 1-1. Short title. This Act may be cited as the
Public-Private Partnerships Act.
Section 1-5. Legislative findings and declaration.
(a) It is hereby found and declared that it is the public
policy and the public purpose of the State to promote the
development, financing, providing of services, and operation
of facilities that serve the needs of the public.
(b) It is hereby found and declared that there are
inadequate public resources to develop, modernize, refurbish,
and maintain public infrastructure and services in a timely
and cost certain manner, and that such need is impeded by
existing methods of procurement and funding.
(c) It is hereby found and declared that authorizing
private entities to do all or part of the development,
planning, design, construction, maintenance, repair,
rehabilitation, expansion, financing, and operation of one or
more facilities, and the providing of services, can result in
the availability of facilities and services to the public in a

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more timely, more efficient, or less costly fashion, thereby
serving the public safety and welfare. Properly planned and
structured public-private partnerships and unsolicited
proposals can help meet such needs by improving the schedule
for delivery, lowering the cost, and providing additional
funding. Obtaining private sector financing using a P3 model
leverages resources to meet the demand for new infrastructure
and services in the State. Pension funds, private investors,
developers, contractors, and other private entities through a
public-private partnership can use long-term financing to
invest in public infrastructure and services and further use
their private expertise in construction, design-build,
management and oversight, project life-cycle planning, and
other areas of expertise not employed by public entities.
Private capital invested in infrastructure and service
investments have the potential to generate stable long-term
returns while ensuring public infrastructure and services are
progressively maintained to benefit State residents. Pension
funds and insurance companies seek investments to match their
long-term liabilities.
(d) It is hereby found and declared that citizens have a
right to transparency and public accountability, including
dissemination of information about the public benefits of P3
projects, open, equitable, transparent, proactive, and
effective communications with the public achieved through
consistent communication activities that recognize the

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respective contributions of the responsible public entity and
the partnering private entity.
(e) It is hereby found and declared that public-private
agreements entered into by private entities and responsible
public entities under this Act shall allow for:
(1) transparency, oversight, and public information
sharing;
(2) compliance with all State and federal
environmental laws;
(3) fairness for local jurisdictions when negotiating
the public-private agreements;
(4) the public sector to gain access to new revenue
sources;
(5) new service delivery capacity;
(6) the optimal sharing of risk based upon P3 best
practice, industry feedback, relevant project precedents,
and prevailing market conditions;
(7) cost and schedule certainty; and
(8) predicted service quality, performance,
innovation, and whole-of-life asset management.
Section 1-10. Actions serving a public purpose. Actions
pursuant to this Act serve the public purposes of this Act if
such actions facilitate the timely development, planning,
design, construction, maintenance, repair, rehabilitation,
expansion, financing, or operation of a qualifying project.

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Section 1-15. Intent. It is the intent of this Act to:
(1) Authorize responsible public entities to develop
and enter into public-private partnership agreements for
qualifying projects which result in the availability of
such projects to the public in a more timely and less
costly fashion, thereby serving the public safety,
benefit, and welfare.
(2) Permit responsible public entities to receive and
consider unsolicited proposals from private sector parties
in a manner that eliminates the perception of bias,
ensures transparency, fairness, and best value for the
responsible public entity and which bring innovative
concepts and ideas to benefit responsible public entities.
(3) Grant public and private entities the greatest
possible flexibility in contracting with each other for
the provision of infrastructure and public services.
(4) Encourage investment in the State by private
entities that facilitates services, development, planning,
design, construction, maintenance, repair,
rehabilitation, expansion, financing, and operation of
facilities.
(5) Establish an Infrastructure Investment Commission
that focuses on supporting and promoting P3 procurement
models and unsolicited proposals that result in the
construction, renewal, or material enhancement of public

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services and infrastructure.
(6) Provide responsible public entities:
(A) the best-in-class project tools, expertise,
and resources to develop predictable procedures for
developing P3 projects and unsolicited proposals; and
(B) a process to submit unsolicited proposals to
responsible public entities that protects their
proprietary trade information.
(7) Provide responsible public entities and private
entities with:
(A) clarity on the intake process, evaluation, and
procedural aspects of unsolicited proposals; and
(B) a process that is short and stable resulting
in a competitive market and lower costs.
(8) Develop a steady flow of P3 projects to benefit
both private entities and responsible public entities.
(9) Establish transparency and accountability
guidelines for P3 projects and unsolicited proposals.
(10) Support the use of State design professionals,
construction companies, and workers to the greatest extent
possible by offering them the right to compete for this
work.
(11) Ensure open, equitable, transparent, proactive,
and effective communication with the public.
(12) Improve upon project development due diligence
practices.

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(13) Support the use of local, minority-owned, and
women-owned business enterprises and economically
disadvantaged firms to the greatest extent possible.
(14) Create jobs and provide training for those jobs
for minorities, women, and veterans to the greatest extent
possible.
(15) Facilitate and encourage the use of pension funds
to develop qualifying projects.
(16) Leverage private sector expertise and capital in
support of efficient, innovative, and timely P3
investments.
(17) Serve as a catalyst for the development of
public-private partnerships and unsolicited proposals in
the State.
(18) Authorize public-private agreements that
distribute the risk optimally between both the private and
public-sector partners.
(19) Support economic growth, clean air and water, a
healthy environment, and stronger communities.
Section 1-20. Construction; authority.
(a) The powers conferred by this Act shall be liberally
construed in order to accomplish their purposes and are in
addition and supplemental to the powers conferred by any other
law. If any other law or rule is inconsistent with this Act,
this Act is controlling as to any public-private agreement and

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financing of any project subject to a public-private agreement
entered into under this Act.
(b) This Act contains full and complete authority for
responsible public entities to enter into agreements,
financing, and leases with private entities to carry out the
activities described in this Act. Except as provided in this
Act, no procedure, proceeding, publication, notice, consent,
approval, order, or act by a responsible public entity or any
other State or local government or official is required to
enter into an agreement or lease, and no law to the contrary
affects, limits, or diminishes the authority for agreements
and leases with private entities.
(c) To the extent that this Act permits or requires a
responsible public entity or a private entity to carry out or
comply with any law other than this Act under a public-private
agreement, the action shall be carried out in conformity with
this Act.
(d) Each responsible public entity may exercise any powers
provided under this Act in participation or cooperation with
any governmental entity and enter into any contracts to
facilitate that participation or cooperation without
compliance with any other statute. Each responsible public
entity shall cooperate with each other and with other
governmental entities in carrying out qualifying projects
under this Act.
(e) A unit of local government may not take any action that

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would have the effect of impairing a public-private agreement
under this Act, except that this Section shall not diminish
any existing police power or other power provided by law to a
unit of local government.
(f) Notwithstanding any provision of law to the contrary,
any public-private agreement entered into under a
public-private partnership shall include a provision requiring
any employer on the project to enter into a labor peace
agreement with any bona fide labor organization representing,
or attempting to represent, its employees, including employees
employed in classifications within the craft jurisdiction, or
in classifications called by different names when performing
similar duties.
Section 1-25. Definitions. As used in this Act:
"Affected jurisdiction" means the following:
(1) The State and any or all of its departments,
divisions, agencies, authorities, or other subdivisions or
parts of the State.
(2) Any county, municipality, township, special
district, or unit designated as a unit of local government
by law in which all or a part of a qualifying project is
located.
(3) Any other public entity directly affected by the
qualifying project.
"Authority" means the Illinois State Toll Highway

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Authority.
"Bona fide labor organization" means a labor organization
recognized under the National Labor Relations Act as a bona
fide labor organization or a labor organization with an
accredited training program that is recognized by the Illinois
Community College Board and the Higher Learning Commission.
"Commercially confidential meetings" means bilateral
meetings prior to the execution of a project agreement between
the responsible public entity and private sector entities
(along with their respective advisors) to discuss matters such
as the project agreement and proponent's suggested amendments
to the project agreement, project design matters, and
innovation submissions.
"Contractor" means a private entity that has entered into
a public-private agreement with the responsible public entity
to provide services to or on behalf of the responsible public
entity.
"Department" means the Department of Transportation.
"Design-build agreement" means the agreement between the
selected private entity and the responsible public entity
under which the selected private entity agrees to furnish
design, construction, and related services for a facility
under this Act.
"Develop" or "development" means to do one or more of the
following: plan, design, develop, lease, acquire, install,
construct, reconstruct, rehabilitate, extend, or expand, or

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provide any other service.
"Employees employed in classifications within the craft
jurisdiction" means all maintenance employees, including, but
not limited to, stationary engineers, building engineers,
maintenance engineers, maintenance technicians, maintenance
mechanics, mechanics, operating engineers, operators, domestic
water operators, wastewater operators, water treatment
technicians, and other related jobs.
"Facility" means:
(1) A facility or project that serves a public
purpose, including, but not limited to, any new or
existing local, county, or state or interstate road,
highway, toll highway, bridge, tunnel, or intermodal
facility; intercity or high-speed passenger rail; rail
project or facility; ferry or mass transit facility;
vehicle parking facility; regional or local airport;
seaport or waterway facility; intelligent-transport system
infrastructure or other transportation technology project
such as, but not limited to, transit priority signaling or
fare collection; other transportation facility or
infrastructure; any administrative facility
broadband-related project or facility; correctional
institution or facility; disaster mitigation facility;
green-energy-related project or facility; energy-related
project or facility; fuel supply facility or oil or gas
pipeline; medical or nursing care facility; recreational

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facility; tourism facility; solid waste management
facility or energy-from-waste facility; sporting or
cultural facility; educational facility or other building
or facility that is used or will be used by a public
educational institution; or any other public facility or
infrastructure or service that is used or will be used by
the public at large or in support of an accepted public
purpose or activity.
(2) An improvement, including equipment, of a
structure that will be principally used by a public entity
or the public at large or that supports a service delivery
system in the public sector.
(3) A sanitation, water, potable water, underground
water, wastewater, or surface water facility or other
related infrastructure; or in support of an accepted
public purpose or activity.
"Labor peace agreement" means an agreement between the
vendor and any bona fide labor organization, that, at a
minimum, protects the State's proprietary interests by
prohibiting labor organizations and members from engaging in
picketing, work stoppages, boycotts, and any other economic
interference with the applicant's business. This agreement
means that the vendor has agreed not to disrupt efforts by the
bona fide labor organization to communicate with and attempt
to organize and represent the private entity's employees. The
agreement shall provide a bona fide labor organization access

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at reasonable times to areas in which the private entity's
employees work, for the purpose of meeting with employees to
discuss their right to representation, employment rights under
State and federal laws, and terms and conditions of
employment.
"Maintain" or "maintenance" includes ordinary maintenance,
repair, rehabilitation, capital maintenance, maintenance
replacement, and any other categories of maintenance that may
be designated by the responsible public entity.
"Operate" or "operation" means to do one or more of the
following: maintain, improve, equip, modify, or otherwise
operate.
"Private entity" means any combination of one or more
individuals, sole proprietorships, private corporations,
general partnerships, limited liability companies, limited
partnerships, joint ventures, business trusts, nonprofit
entities, or other business entities that are nongovernmental
parties to a proposal for a qualifying project or an agreement
related to a qualifying project. A public agency may provide
services to a contractor as a subcontractor or subconsultant
without affecting the private status of the private entity and
the ability to enter into a public-private agreement.
"Project development fund" means a fund to assist
responsible public entities with public-private partnership
projects and unsolicited proposals. Approval for any
expenditure from this fund shall be approved by the

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Infrastructure Investment Commission.
"Project labor agreement" means a prehire collective
bargaining agreement with one or more labor organizations that
establishes the terms and conditions of employment for a
specific project.
"Proposal" means all materials and documents prepared by
or on behalf of a private entity relating to the proposed
development, financing, or operation of a facility as a
qualifying project.
"Proposer" means a private entity that has submitted an
unsolicited proposal for a public-private agreement to a
responsible public entity under this Act or submitted a
proposal or statement of qualifications for a public-private
agreement in response to a request for proposals or a request
for qualifications for a project or services issued by a
responsible public entity under this Act.
"Public-private agreement" means the public-private
agreement between the private entity vendor and the
responsible public entity relating to one or more of the
proposed development, financing, or operation of a qualifying
project that is entered into under this Act.
"Public-private partnership" or "P3" means
performance-based contractual relationships between one or
more private entities and one or more responsible public
entities related to one or more qualifying projects.
"Qualifying project" or "project" means one or more

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services or projects serving a public purpose, that is owned,
financed, controlled, or operated by a private entity in whole
or in part under this Act.
"Request for information" means all materials and
documents prepared by or on behalf of a responsible public
entity to solicit information from private entities with
respect to qualifying projects.
"Request for proposals" means all materials and documents
prepared by or on behalf of a responsible public entity to
solicit proposals from private entities to enter into a
public-private agreement.
"Request for qualifications" means all materials and
documents prepared by or on behalf of a responsible public
entity to solicit statements of qualification from private
entities to enter into a public-private agreement.
"Responsible public entity" means the State and any or all
of its departments, divisions, agencies, authorities, or other
subdivisions or parts of the State, any county, municipality,
school district, or special district, any other political
subdivision of the State, or any unit of local government; a
public body corporate and politic; or a regional entity that
serves a public purpose and is authorized to develop or
operate a qualifying project. "Responsible public entity" does
not include economic development or tourism partnerships,
councils, commissions, or entities.
"Revenues" means all revenues, including any combination

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of: income; earnings and interest; user fees; lease payments;
allocations; federal, State, and local appropriations, grants,
loans, lines of credit, and credit guarantees; bond proceeds;
equity investments; service payments; or other receipts,
arising out of or in connection with a qualifying project,
including the development, financing, and operation of a
qualifying project. "Revenues" includes money received as
grants, loans, lines of credit, credit guarantees, rebate or
otherwise in aid of a qualifying project from the federal
government, State, unit of local government, or any agency or
instrumentality of the federal government, State, or unit of
local government.
"Services" means operations, such as, but not limited to,
parking, cable, broadband, accounting, human resources, health
care, data management, and technology.
"Shortlist" means the process by which a responsible
public entity will review, evaluate, and rank statements of
qualifications submitted in response to a request for
qualifications and then identify the proposers who are
eligible to submit a detailed proposal in response to a
request for proposals. The identified proposers constitute the
shortlist for the qualifying project to which the request for
proposals relates.
"Vendor" means a person that has been selected to enter or
has entered into a public-private partnership agreement with
the Department on behalf of the State for the financing,

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management, or operation of the public-private partnership
agreement under this Act.
"Unit of local government" has the meaning ascribed to
that term in Article VII, Section 1 of the Illinois
Constitution, and also means any unit designated as a
municipal corporation or school district.
"Unsolicited proposal" means a written proposal that is
submitted to one or more responsible public entities on the
initiative of the private sector entity or entities for the
purpose of developing a partnership, and that is not in
response to a formal or informal request issued by the
responsible public entity.
"User fees" or "tolls" means the rates, tolls, fees, or
other charges imposed by the contractor for use of all or a
portion of a qualifying project under a public-private
agreement.
Article 2. Infrastructure Investment Commission
Section 2-5. Establishment. Pursuant to this Act, the
Governor shall establish an Infrastructure Investment
Commission. The Infrastructure Investment Commission shall
report to and be funded by the Illinois Finance Authority, and
shall be independent of other agencies and departments of the
State.

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Section 2-10. Duties of the Commission. The Commission
shall:
(1) Assist responsible public entities with
identifying projects, including opportunities for project
aggregation, for which a public-private partnership may be
appropriate.
(2) Provide technical assistance and expertise to
responsible public entities on using public-private
partnerships to develop or operate qualifying projects,
including analyzing their benefits and costs and the
innovative financing options available to support them.
(3) Supply template contracts.
(4) Track proposed, ongoing, and completed
private-public partnerships.
(5) Provide technical assistance in applying for
federal funding grants or financing (for example, the
Transportation Infrastructure Finance and Innovative Act
program, the Transportation Infrastructure Finance and
Innovative Act program Lite, the Transportation
Infrastructure Finance and Innovative Act program Rural
Project Initiative, the Regional Infrastructure
Accelerators Program, and the Capital Investment Grants
Program).
(6) Identify methods of encouraging competition for
the development or operation of qualifying projects.
(7) Serve as a liaison to State or federal government

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officials charged with promoting public-private
infrastructure partnerships, other State executive
directors of infrastructure investment commissions, and
regional or metropolitan public-private partnership
offices.
(8) Conduct public and stakeholder engagement and
outreach, including efforts to encourage transparency and
information sharing regarding public-private
partnerships.
(9) Issue regular updates on the future pipeline of P3
projects.
(10) Promote best practices, including standardized
methodologies and processes.
(11) Attract private investment to the State.
(12) Develop a project development fund to:
(A) assist responsible public entities to assess
the usefulness of the P3 model and unsolicited
proposals for their capital procurement and service
needs for specific projects;
(B) assist responsible public entities to manage a
P3 procurement project or unsolicited proposal;
(C) assist responsible public entities, that are
not experienced with P3 procurement or unsolicited
proposals;
(D) assist responsible public entities that are
undertaking new approaches or documenting P3 and

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unsolicited proposal practices in a way that will
assist the Infrastructure Investment Commission and
other responsible public entities in future projects;
(E) assist with training costs for key staff of a
responsible public entity who are integral to the
successful development and implementation of a
project;
(F) assist a public entity with P3 procurement or
an unsolicited proposal that may include, but may not
be limited to, a market analysis, qualitative
assessment report, procurement options analysis,
quantitative analysis, risk analysis, implementation
strategy, and procurement documents; and
(G) assist with the engagement of external and
accredited P3 advisors and analysts.
Section 2-15. Governance of the Commission.
(a) The Commission shall be headed by a Chairperson and a
6-member Board of Directors.
(b) The Board is responsible for the overall governance of
the Commission and shall adopt a 5-year corporate plan and
annual report. The Board shall meet at least quarterly to
review the Commission's overall operation, receive committee
reports, discuss the Investment Infrastructure Commission's
performance, and approve expenditures. The Board shall review
the performance of the Executive Director annually.

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(c) The Board shall establish committees to support the
Board as needed, including:
(1) an Audit Committee to oversee the Commission's
standards of integrity and behavior, oversee the
Commission's reporting of financial information and
expenditures of the project development fund, oversee the
Commission's internal control systems, including the
Commission's compliance with all applicable legal and
regulatory requirements, review the qualifications,
independence and performance of the Commission's external
auditors, and oversee the Commission's enterprise risk
management plan; and
(2) a Budget Committee that shall develop an annual
revenue and expenditure plan, submit said plan to the
Illinois Finance Authority for approval and funding, and
monitor said revenues and expenditures during the course
of the budget cycle.
Section 2-20. Board appointments.
(a) The Commission established pursuant to this Article
shall be composed of 7 members, appointed by the Governor,
with the advice and consent of the Senate, having expertise,
knowledge, or experience in infrastructure development or
operation, capital market and finance, public-sector planning,
or P3 procurement. No more than 4 members of any one political
party may serve as members of the Commission at the same time.

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Members of the Commission shall, to a reasonable extent,
represent geographically diverse regions of the State as well
as diversity in race, ethnicity, and gender.
Vacancies shall be filled for the unexpired term in the
same manner as original appointments. All appointments shall
be in writing and filed with the Secretary of State as a public
record.
(b) Of the members appointed by the Governor, one such
member shall be appointed by the Governor as chairperson and
shall hold office for 4 years from the date of appointment, and
until a successor shall be duly appointed and qualified, but
shall be subject to removal by the Executive Director of the
Illinois Finance Authority for incompetency, neglect of duty,
or malfeasance.
(c) Of the original members, other than the chairperson, 3
shall hold office for 2 years and 3 shall hold office for 4
years, from the date of appointment and until respective
successors are duly appointed and qualified, but shall be
subject to removal by the Executive Director of the Illinois
Finance Authority for incompetency, neglect of duty, or
malfeasance. In case of vacancies in such offices during the
recess of the Senate, the Governor shall make a temporary
appointment until the next meeting of the Senate when the
Governor shall nominate a person to fill such office and any
person so nominated, who is confirmed by the Senate, shall
hold office during the remainder of the term and until a

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successor is appointed and qualified. The respective term of
the first members appointed shall be designated by the
Governor at the time of appointment, but successors shall each
be appointed for a term of 4 years, except that any person
appointed to fill a vacancy shall serve only for the unexpired
term. Members shall be eligible for reappointment. Members
shall serve until the respective successors are duly appointed
and qualified.
(d) Each such member shall receive an annual salary of
$10,000, or as set by the Compensation Review Board, whichever
is greater, payable in monthly installments, and shall be
reimbursed for necessary expenses incurred in the performance
of duties under this Act.
Section 2-25. Duties of the Chairperson of the Commission.
The Chairperson shall preside at all meetings of the
Commission, exercise general supervision over all powers,
duties, obligations, and functions of the Commission, and
shall approve or disapprove all resolutions, bylaws, rules,
and rates made and established by the Commission, and if the
Chairperson approves, the Chairperson shall sign the same, and
such as the Chairperson shall not approve, the Chairperson
shall return to the Commission with objections thereto in
writing at the next regular meeting of the Commission
occurring after the passage thereof. Such veto may extend to
any one or more items contained in such resolution, bylaw,

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rule, or rate, or to its entirety; in case the veto extends to
a part of such resolution, bylaw, rule, or rate, the residue
thereof shall take effect and be in force, but in case the
Chairperson shall fail to return any resolution, bylaw, rule,
or rate with objections thereto by the time aforesaid, the
Chairperson shall be deemed to have approved the same, and the
same shall take effect accordingly. Upon the return of any
resolution, bylaw, rule, or rate by the Chairperson, the vote
by which the same was passed shall be reconsidered by the
Commission, and if upon such reconsideration two-thirds of all
the members agree to pass the same, it shall go into effect
notwithstanding the Chairperson's refusal to approve thereof.
The process of approving or disapproving all resolutions,
bylaws, rules, or rates, as well as the ability of the members
to override the disapproval of the Chairperson, under this
Section shall be set forth in the Commission's bylaws. Nothing
in the Commission's bylaws or rules may be contrary to this
Section.
Section 2-30. Duties of the Executive Director of the
Commission.
(a) The Executive Director shall be appointed by a
majority vote of the Commission.
(b) The Executive Director shall have demonstrated
knowledge, training, or experience in 2 or more of the
following areas:

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(1) infrastructure development or operation;
(2) capital markets and finance, including municipal
finance;
(3) public-sector planning; or
(4) P3 procurement.
(c) The Executive Director shall provide to the standing
committees of the House and Senate having jurisdiction over
services, transportation, or infrastructure and post online a
report annually within 6 weeks of the end of each fiscal year
that:
(1) lists those public-private partnerships that are
expected to be soliciting bids within the next fiscal
year, are in progress, were completed during the prior
fiscal year, or were removed from consideration during the
prior fiscal year; and
(2) summarizes actions taken by the Commission to
fulfill its duties under Section 2-10.
(d) The Executive Director shall be responsible to the
Commission for the proper administration of the affairs of the
Commission and policies adopted by the Chairperson and members
of the Commission.
(e) All employees, as are necessary to the proper
functioning of the Commission, shall be appointed by and
report to the Executive Director with the consent of the
Commission.
(f) The Executive Director shall hold office for 4 years

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from the date of appointment, but shall be subject to removal
by the Commission for incompetency, neglect of duty, or
malfeasance.
(g) The Executive Director shall receive a salary of
$15,000 per annum, or as set by a Compensation Review Board,
whichever is greater, payable in monthly installments,
together with reimbursement for necessary expenses incurred in
the performance of the duties of the Executive Director. The
Executive Director shall be eligible for reappointment.
Section 2-35. Report on compliance with legislative
requirements. The Commission shall adhere to the Freedom of
Information Act and the State Records Act.
Article 3. Qualification and Process
Section 3-5. Unsolicited proposals.
(a) A responsible public entity may receive unsolicited
proposals for a project and may thereafter enter into a
public-private agreement with a private entity, or a
consortium of private entities, for the building, upgrading,
providing of services, operating, ownership, or financing of
facilities.
(b) A responsible public entity may consider, evaluate,
and accept an unsolicited proposal for a public-private
partnership project from a private entity if the proposal:

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(1) is independently developed and drafted by the
proposer without responsible public entity supervision;
(2) shows that the proposed project could benefit the
people served by the responsible public entity;
(3) includes a financing plan to allow the project to
move forward pursuant to the applicable responsible public
entity's budget and finance requirements; and
(4) includes sufficient detail and information for the
responsible entity to evaluate the proposal in an
objective and timely manner and permit a determination
that the project would be worthwhile.
(c) The unsolicited proposal shall include the following:
(1) an executive summary covering the major elements
of the proposal;
(2) qualifications concerning the experience,
expertise, technical competence, and qualifications of the
private entity and of each member of its management team
and of other key employees, consultants, and
subcontractors, including the name, address, and
professional designation;
(3) a facilities project description, including, when
applicable:
(A) the limits, scope, and location of the
proposed project;
(B) right-of-way requirements;
(C) connections with other facilities and

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improvements to those facilities necessary if the
project is developed;
(D) a conceptual project design; and
(E) a statement of the project's relationship and
impact upon relevant existing plans of the responsible
public entity;
(4) a facilities project schedule, including when
applicable, estimates of:
(A) dates of contract award;
(B) start of construction;
(C) completion of construction;
(D) start of operations; and
(E) major maintenance or reconstruction activities
during the life of the proposed project agreement;
(5) an operating plan describing the operation of the
completed facility if operation of a facility is part of
the proposal, describing the management structure and
approach, proposed period of operations, enforcement,
emergency response, and other relevant information;
(6) a finance plan describing the proposed financing
of the project identifying the source of funds to, where
applicable, design, construct, maintain, and manage the
project during the term of the proposed contract; and
(7) the legal basis for the project and licenses and
certifications; the private entity must demonstrate it has
licenses and certificates necessary to complete the

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project.
(d) Within 120 days after receiving an unsolicited
proposal, the responsible public entity shall complete a
preliminary evaluation of the unsolicited proposal and shall
either:
(1) if the preliminary evaluation is unfavorable,
return the proposal without further action;
(2) if the preliminary evaluation is favorable, notify
the proposer that the responsible public entity will
further evaluate the proposal; or
(3) request amendments clarification or modification
of the unsolicited proposal.
(e) The procurement process for unsolicited proposals
shall be as follows:
(1) If the responsible public entity chooses to
further evaluate an unsolicited proposal with the intent
to enter into a public-private agreement for the proposed
project the responsible public entity shall publish notice
in a newspaper of general circulation covering the
location of the project at least once a week for 2 weeks
stating that the responsible public entity has received a
proposal and will accept other proposals for the same
project. The timeframe within which the responsible public
entity may accept other proposals shall be determined by
the responsible public entity on a project-by-project
basis based upon the complexity of the qualifying project

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and the public benefit to be gained by allowing a longer or
shorter period of time within which other proposals may be
received; however, the timeframe for allowing other
proposals must be at least 21 days, but no more than 120
days, after the initial date of publication.
(2) A copy of the notice must be mailed to each local
government in the affected jurisdiction. The responsible
public entity shall provide reasonably sufficient
information and the identity of its contact person to
enable other private entities to make proposals.
(3) If after no less than 120 days, no counterproposal
is received, or if the counterproposals are evaluated and
found to be equal to or inferior to the original
unsolicited proposal, the responsible public entity may
proceed to negotiate a contract with the original
proposer.
(4) If after no less than 120 days one or more
counterproposals meeting unsolicited proposal standards
are received, and if, in the opinion of the responsible
public entity, the counterproposals are evaluated and
found to be superior to the original unsolicited proposal,
the responsible public entity shall proceed to determine
the successful participant through a final procurement
phase known as "Best and Final Offer" (BAFO). The BAFO is a
process whereby the responsible public entity shall invite
the original private sector party and the proponent

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submitting the superior counterproposal to engage in a
BAFO phase. The invitation to participate in the BAFO
phase will provide to each participating proposer:
(A) the general concepts that were considered
superior to the original proposal, while keeping
proprietary information contained in the proposals
confidential to the extent possible; and
(B) the preestablished evaluation criteria or the
"basis of award" to be used to determine the
successful proponent.
(5) Offers received in response to the BAFO invitation
will be reviewed by the responsible public entity and
scored in accordance with a preestablished criterion, or
alternatively, in accordance with the "basis of award"
provision identified through the BAFO process. The
successful proponent will be the proponent offering "best
value" to the responsible public entity.
(6) In all cases, the "basis of award" will be "best
value" to the responsible public entity, as determined by
the responsible public entity.
(f) After a comprehensive evaluation and acceptance of an
unsolicited proposal and any alternatives, the responsible
public entity may commence negotiations with a proposer,
considering:
(1) the proposal has received a favorable
comprehensive evaluation;

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(2) the proposal is not duplicative of existing
infrastructure project or services;
(3) the alternative proposal does not closely resemble
a pending competitive proposal for a public-private
partnership or other procurement;
(4) the proposal demonstrates a unique method,
approach, or concept;
(5) facts and circumstances that preclude or warrant
additional competition;
(6) the availability of any funds, debts, or assets
that the State will contribute to the project;
(7) facts and circumstances demonstrating that the
project will likely have a significant adverse impact on
State bond ratings; and
(8) indemnifications included in the proposal.
Section 3-10. Competitive procurements; public-private
partnership.
(a) A responsible public entity may solicit proposals for
a qualifying project from private entities.
(b) After the public notification period has expired the
responsible public entity shall rank the proposals received in
terms of "best value". In ranking the proposals, the
responsible public entity may consider factors that include,
but are not limited to, public benefit, minority, women and
veteran participation, professional qualifications, general

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business terms, innovative design techniques or cost-reduction
terms, and finance plans. The responsible public entity may
then begin negotiations for a public-private agreement with
the highest-ranked firm. If the responsible public entity is
not satisfied with the results of the negotiations, the
responsible public entity may terminate negotiations with the
proposer and negotiate with the second-ranked or
subsequent-ranked firms, in the order consistent with this
procedure. If only one proposal is received, the responsible
public entity may negotiate in good faith, and if the
responsible public entity is not satisfied with the results of
the negotiations, the responsible public entity may terminate
negotiations with the proposer.
Section 3-15. Additional rights of responsible public
entity. In addition to any other rights under this Act, in
connection with any procurement under this Article, the
responsible public entity may:
(1) terminate or modify by:
(A) withdrawing a request for information, request for
qualifications, or a request for proposals at any time
and, in its discretion, publishing a new request for
qualifications or request for proposals;
(B) declining to approve a proposal;
(C) declining to award a public-private agreement;
(D) requesting clarifications to any statement of

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information, qualifications, or proposal received, to seek
one or more revised proposals or one or more best and final
offers, or to conduct negotiations with one or more
private entities that have submitted proposals; or
(E) modifying the terms, provisions, and conditions of
a request for qualification, request for proposals,
technical specifications, or form of public-private
agreement during the pendency of a procurement.
(2) Interview proposers.
(3) Exercise any other rights available to the responsible
public entity under this Act, applicable law, and
administrative rule.
Section 3-20. Confidentiality of P3 proposals; disclosure.
(a) Except as provided in paragraph (2) of subsection (e)
of Section 3-5, the responsible public entity may not disclose
the contents of proposals during discussions or negotiations
with potential proposers.
(b) The responsible public entity may, in its discretion
in accordance with the Freedom of Information Act, treat as
confidential all or some information relating to an
unsolicited proposal, including, but not limited to,
discussions or negotiations between the responsible public
entity and potential proposers.
(c) Notwithstanding subsections (a) and (b), and with the
exception of portions that are confidential under the Freedom

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of Information Act, the terms of the selected offer negotiated
under this Act shall be available for inspection and copying
under the Freedom of Information Act after negotiations with
the proposers have been completed.
(d) When disclosing the terms of the selected offer under
subsection (c), the responsible public entity shall certify
that the information being disclosed accurately and completely
represents the terms of the selected offer.
(e) The responsible public entity shall disclose the
contents of all proposals, except the parts of the proposals
that may be treated as exempt in accordance with the Freedom of
Information Act, when either:
(1) the request for proposal process is withdrawn
under Section 3-5; or
(2) the public-private agreement has been executed and
the closing for each financing transaction required to
provide funding to carry out the agreement has been
conducted.
Section 3-25. Interim agreement. Before or in connection
with the negotiation of a public-private agreement, the
responsible public entity may enter into an interim agreement
with the private entity proposing the development or operation
of the qualifying project. An interim agreement is
discretionary with the parties. An interim agreement may:
(1) Authorize the private entity to commence

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activities for which it may be compensated related to the
proposed qualifying project, including, but not limited
to, project planning and development, design,
environmental analysis and mitigation, survey, other
activities concerning any part of the proposed qualifying
project, and ascertaining the availability of financing
for the proposed facility or facilities.
(2) Establish the process and timing of the
negotiation of the public-private agreement.
(3) Contain such other provisions related to an aspect
of the development or operation of a qualifying project
that the responsible public entity and the private entity
deem appropriate.
Section 3-30. Payment of stipulated amount for work
product of unsuccessful proposer; rights; liability. The
responsible public entity may pay a stipulated amount to an
unsuccessful proposer that submits a responsive proposal in
response to a proposal under this Article, in exchange for the
work product contained in that proposal. Upon payment of the
stipulated amount, and unless agreed otherwise by the parties:
(1) the responsible public entity and the unsuccessful
proposer jointly own the rights to, and may make use of any
work product contained in the proposal, including the
technologies, techniques, methods, processes, ideas, and
information contained in the proposal, project design, and

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project financial plan; and
(2) the use by an unsuccessful proposer of any part of
the work product contained in the proposal is at the sole
risk of the unsuccessful proposer and does not confer
liability on the responsible public entity.
Section 3-35. Project awards.
(a) The responsible public entity may perform an
independent analysis of the proposed public-private
partnership that demonstrates the cost-effectiveness and
overall public benefit before the procurement process is
initiated or before the contract is awarded.
(b) The responsible public entity may approve the
development or operation of a qualifying project, or the
design or equipping of a qualifying project that is developed
or operated, if:
(1) there is a public need for, or benefit derived
from a project of the type that the private entity
proposes as the qualifying project;
(2) the estimated cost of the qualifying project is
reasonable in relation to similar facilities;
(3) the private entity's plans will result in the
timely acquisition, design, construction, improvement,
renovation, expansion, equipping, maintenance, or
operation of the qualifying project; and
(4) the proposed project or service is in the public's

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best interest.
(c) The responsible public entity may charge a reasonable
fee to cover the costs of processing, reviewing, and
evaluating the request, including, but not limited to,
reasonable attorney or other professional fees and fees for
financial and technical advisors or consultants and for other
necessary advisors or consultants.
(d) Upon approval of a qualifying project, the responsible
public entity shall establish a date for the commencement of
activities related to the qualifying project. The responsible
public entity may extend the commencement date.
(e) Approval of a qualifying project by the responsible
public entity is subject to entering into a public-private
agreement with the private entity.
(f) The responsible public entity shall provide
notification to the public of its intent to commence
negotiations with a proposer.
(g) Before signing a public-private agreement, the
responsible public entity must consider a reasonable funding,
financing and affordability plan considering the project cost,
revenues by source, available financing, major assumptions,
internal rate of return on private investments, if
governmental funds are assumed in order to deliver a
cost-feasible project, and a total cash-flow analysis
beginning with the implementation of the project and extending
for the term of the public-private agreement except no longer

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than the life of the project or 75 years, whichever is earlier.
(h) If the responsible public entity chooses to evaluate a
detailed proposal involving architecture, engineering, or
landscape architecture, it may require a professional review
and evaluation of the design and construction proposed to
ensure material quality standards, interior space use, budget
estimates, design and construction schedules, and sustainable
design and construction standards.
(i) Each facility project awarded by a responsible public
entity shall:
(1) ensure that provision is made for the private
entity's performance and payment of subcontractors,
including, but not limited to, surety bonds, letters of
credit, parent company guarantees, and lender and equity
partner guarantees. Components of the qualifying project
that involve construction performance and payment bonds
are subject to the recordation, notice, suit limitation,
and other requirements of the Public Construction Bond
Act;
(2) ensure the performance and payment of
subcontractors;
(3) ensure that the public-private agreement addresses
termination upon a material default of the public-private
agreement; and
(4) pay wages pursuant to prevailing wage standards.

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Article 4. Formation of an Agreement
Section 4-5. Exercise of powers.
(a) A responsible public entity may exercise the powers
granted by this Act to undertake qualifying projects through
public-private agreements with one or more private entities.
(b) The Authority may enter into a public-private
partnership for qualifying projects on the toll highway system
such as commuter rail or high-speed rail lines, and
intelligent transportation infrastructure that will enhance
the safety, efficiency, and environmental quality of the State
highway system. The Authority may operate or provide
operational services such as toll collection on highways that
are developed or financed, or both, through a public-private
agreement entered into by another public entity, under an
agreement with the public entity or contractor responsible for
the transportation project.
Section 4-10. Powers of contractor; user fees. A
contractor has:
(1) all powers allowed by law generally to a private
entity having the same form of organization as the
contractor; and
(2) the power to develop, own, control, finance, and
operate the qualifying project, and to impose and collect
user fees, subject to the terms of the public-private

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agreement. No tolls or user fees may be imposed by the
contractor except as set forth in a public-private
agreement.
Section 4-15. Powers of contractor; property interests.
The contractor may own, lease, or acquire any property
interest or other right to develop, finance, or operate the
qualifying project, as long as the qualifying project retains
a public purpose.
Section 4-20. Powers of contractor; user classifications
and enforcement of rules. In operating the qualifying project,
the contractor may do the following:
(1) Make user classifications as permitted in the
public-private agreement.
(2) As permitted in the public-private agreement or
otherwise with the consent of the responsible public
entity, make and enforce reasonable rules to the same
extent that the responsible public entity may make and
enforce rules with respect to a similar project.
Article 5. Public-Private Agreements
Section 5-5. Provisions of agreement.
(a) Before beginning the development, financing,
operation, or any combination of the development, financing,

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or operation of a qualifying project under this Act, the
contractor must enter into a public-private agreement with the
responsible public entity. Subject to the other provisions of
this Act, the responsible public entity and a private entity
may enter into a public-private agreement with respect to a
qualifying project. Subject to the requirements of this Act, a
public-private agreement may provide that the private entity,
acting on behalf of the responsible public entity, is
partially or entirely responsible for any combination of
developing, financing, or operating the qualifying project.
(b) The public-private agreement must be in writing and
may, as determined appropriate by the responsible public
entity for the particular qualifying project, provide for some
or all of the following:
(1) Development, planning, design, construction,
maintenance, repair, rehabilitation, expansion, providing
or services, financing, and operation of the qualifying
project under terms set forth in the public-private
agreement, in any form as deemed appropriate by the
responsible public entity, including, but not limited to,
a long-term concession or lease, or an agent to build,
finance, own, operate or maintain or any one or
combination of the same, as applicable and serving a
public purpose, a design-bid-build agreement, design-build
agreement, design-build-maintain agreement,
design-build-finance agreement,

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design-build-operate-maintain agreement, and
design-build-finance-operate-maintain agreement.
(2) Delivery of performance and payment bonds or other
performance security determined suitable by the
responsible public entity, including letters of credit,
United States bonds and notes, parent guaranties, and cash
collateral, in connection with the development, financing,
or operation of the qualifying project, in the forms and
amounts set forth in the public-private agreement or
otherwise determined as satisfactory by the responsible
public entity to protect the responsible public entity and
payment bond beneficiaries who have a direct contractual
relationship with the contractor or a subcontractor of the
contractor to supply labor or material. The payment or
performance bond or alternative form of performance
security is not required for the portion of a
public-private agreement that includes only design,
planning, or financing services, the performance of
preliminary studies, or the acquisition of real property.
(3) Review of plans for any development or operation,
or both, of the qualifying project by the responsible
public entity.
(4) Inspection of any construction of or improvements
to the qualifying project by the responsible public entity
or another entity designated by the responsible public
entity or under the public-private agreement to ensure

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that the construction or improvements conform to the
standards set forth in the public-private agreement or are
otherwise acceptable to the responsible public entity.
(5) Maintenance of:
(A) one or more policies of public liability
insurance (copies of which shall be filed with the
responsible public entity accompanied by proofs of
coverage); or
(B) self-insurance each in the form and amount as
set forth by the public-private agreement or otherwise
satisfactory to the responsible public entity as
reasonably sufficient to insure coverage of tort
liability to the public and employees and to enable
the continued operation of the qualifying project.
(6) Where operations are included within the
contractor's obligations under the public-private
agreement, monitoring of the maintenance practices of the
contractor by the responsible public entity or another
entity designated by the responsible public entity or
under the public-private agreement and the taking of the
actions the responsible public entity finds appropriate to
ensure that the qualifying project is properly maintained.
(7) Reimbursement to be paid to the responsible public
entity as set forth in the public-private agreement for
services provided by the responsible public entity.
(8) Filing of appropriate financial statements and

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reports as set forth in the public-private agreement or as
otherwise in a form acceptable to the responsible public
entity on a periodic basis.
(9) Compensation or payments to the contractor.
Compensation or payments may include any or a combination
of the following:
(A) A base fee and additional fee for project
savings as the design-builder of a construction
project.
(B) A development fee, payable on a lump sum
basis, progress payment basis, project milestone
basis, time and materials basis, or any other basis
considered appropriate by the responsible public
entity.
(C) An operations fee, payable on a lump sum
basis, time and material basis, periodic basis, or any
other basis considered appropriate by the responsible
public entity.
(D) Some or all of the revenues, if any, arising
out of operation of the qualifying project.
(E) A maximum rate of return on investment or
return on equity or a combination of the 2.
(F) In-kind services, materials, property,
equipment, or other items.
(G) Compensation in the event of any termination.
(H) Availability payments or similar arrangements

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whereby payments are made to the contractor pursuant
to the terms set forth in the public-private
agreements or related agreements.
(I) Other compensation set forth in the
public-private agreement or otherwise considered
appropriate by the responsible public entity.
(10) Compensation or payments to the responsible
public entity, if any. Compensation or payments to the
responsible public entity may include any one or
combination of the following:
(A) A concession or lease payment or other fee,
which may be payable upfront or on a periodic basis or
on another basis deemed appropriate by the responsible
public entity.
(B) Sharing of revenues, if any, from the
operation of the qualifying project.
(C) Sharing of project savings from the
construction or services of the qualifying project.
(D) Payment for any services, materials,
equipment, personnel, or other items provided by the
responsible public entity to the contractor under the
public-private agreement or in connection with the
qualifying project.
(E) Other compensation set forth in the
public-private agreement or otherwise considered
appropriate by the parties.

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(11) The date and terms of termination of the
contractor's authority and duties under the public-private
agreement and the circumstances under which the
contractor's authority and duties may be terminated before
that date.
(12) The term of a public-private agreement, including
all extensions, may not exceed 75 years.
(13) Upon termination of the public-private agreement,
the authority of the contractor under this Act ceases,
except for those duties and obligations that extend beyond
the termination, as set forth in the public-private
agreement, and all interests in the qualifying project
shall revert to the responsible public entity.
(14) Rights and remedies of the responsible public
entity if the contractor defaults or otherwise fails to
comply with the terms of the public-private agreement.
(15) Procedures for the selection of professional
design firms and subcontractors, which shall include
procedures consistent with the Architectural, Engineering,
and Land Surveying Qualifications Based Selection Act for
the selection of professional design firms and may
include, in the discretion of the responsible public
entity, procedures consistent with the low bid procurement
procedures outlined in the Illinois Procurement Code for
the selection of construction companies.
(16) Other terms, conditions, and provisions that the

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responsible public entity finds are in the public's
interest.
(c) Notwithstanding any provision of law to the contrary,
any public-private agreement entered into under a
public-private partnership between a vendor and a responsible
public entity shall include a provision requiring the selected
vendor to enter into a labor peace agreement with any bona fide
labor organization, including any bona fide labor organization
that represents or is attempting to represent any of its
employees.
Section 5-10. Additional requirements.
(a) The responsible public entity may fix the amounts of
user fees that a contractor may charge and collect for the use
of any part of a qualifying project in accordance with the
public-private agreement. In fixing the amounts, the
responsible public entity may establish amounts for the user
fees and may provide that any increases or decreases of those
fees shall be based upon the indices, methodologies, or other
factors the responsible public entity considers appropriate.
(b) A public-private agreement may:
(1) authorize the imposition of tolls;
(2) authorize the contractor to adjust the user fees
for the use of the qualifying project, so long as the
amounts charged and collected by the contractor do not
exceed amounts established by the responsible public

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entity under the public-private agreement;
(3) provide that any adjustment by the contractor
permitted under paragraph (2) may be based on the indices,
methodologies, or other factors described in the
public-private agreement;
(4) authorize the contractor to charge and collect
user fees through methods, including, but not limited to,
automatic vehicle identification systems, electronic toll
collection systems, and, to the extent permitted by law,
global positioning system-based, photo-based, or
video-based toll collection enforcement, if, to the
maximum extent feasible, the contractor will (i) use open
road tolling methods that allow payment of tolls at
highway speeds and (ii) comply with United States
Department of Transportation requirements and best
practices with respect to tolling methods; and
(5) authorize the collection of user fees by a third
party.
Section 5-15. Loans for qualifying project. In the
public-private agreement, the responsible public entity may
agree to make loans for the development or operation, or both,
of the qualifying project from time to time from amounts
received from the federal government or any agency or
instrumentality of the federal government or from any State or
local agency. No loan shall extend beyond the life of the

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qualifying project as the parties determine.
Section 5-20. Terms and conditions in agreement. The
public-private agreement must incorporate the duties of the
contractor under this Act and may contain the other terms and
conditions that the responsible public entity determines serve
the public purpose of this Act. The public-private agreement
may contain provisions under which the responsible public
entity agrees to provide notice of default and cure rights for
the benefit of the contractor and the persons or entities
described in the public-private agreement that are providing
financing for the qualifying project. The public-private
agreement may contain any other lawful term or condition to
which the contractor and the responsible public entity
mutually agree, including provisions regarding change orders,
dispute resolution, required upgrades to the qualifying
project, tolling policies, changes and modifications to the
qualifying project, unavoidable delays, or provisions for a
loan or grant of public funds for the development or
operation, or both, of one or more qualifying projects.
Section 5-25. Responsible public entity takeover of
qualifying project after termination or expiration.
(a) Upon the termination or expiration of the
public-private agreement, including a termination for default,
the responsible public entity shall have the right to take

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over the qualifying project and to succeed to all of the right,
title, and interest in the qualifying project and all real
property acquired as a part of the project shall be held in the
name of the responsible public entity.
(b) If a responsible public entity elects to take over a
qualifying project as provided in subsection (a), the
responsible public entity may do the following:
(1) develop, finance, or operate the project,
including through a public-private agreement entered in
accordance with this Act; and
(2) impose, collect, retain, and use user fees, if
any, for the project.
(c) If a responsible public entity elects to take over a
qualifying project as provided in subsection (a), the
responsible public entity may use the revenues, if any, for
any lawful purpose, including to:
(1) make payments to individuals or entities in
connection with any financing of the qualifying project,
including through a public-private agreement entered into
in accordance with this Act;
(2) permit a contractor to receive some or all of the
revenues under a public-private agreement entered into
under this Act;
(3) pay development costs of the project;
(4) pay current operation costs of the project or
facilities;

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(5) pay the contractor for any compensation or payment
owed upon termination; and
(6) pay for the development, financing, or operation
of any other project or projects the responsible public
entity deems appropriate.
(d) The full faith and credit of the State or any political
subdivision of the State or the responsible public entity is
not pledged to secure any financing of the contractor by the
election to take over the qualifying project. Assumption of
development or operation, or both, of the qualifying project
does not obligate the State or any political subdivision of
the State or the responsible public entity to pay any
obligation of the contractor.
Section 5-30. Changes added by written amendment. Any
changes in the terms of the public-private agreement agreed to
by the parties shall be added to the public-private agreement
by written amendment.
Section 5-35. Agreements with multiple private entities.
Notwithstanding any other provision of this Act, the
responsible public entity may enter into a public-private
agreement with multiple private entities if the responsible
public entity determines in writing that it is in the public
interest to do so.

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Section 5-40. Agreement provisions for qualifying project.
The public-private agreement may provide for all or part of
the development, financing, or operation of phases or segments
of the qualifying project.
Article 6. Development and Operations Standards for Projects
Section 6-5. Standards of compliance for plans and
specifications. The plans and specifications, if any, for each
project developed under this Act must comply with:
(1) the responsible public entity's standards for
other projects of a similar nature or as otherwise
provided in the public-private agreement;
(2) the Professional Engineering Practice Act of 1989,
the Structural Engineering Practice Act of 1989, the
Illinois Architecture Practice Act of 1989, Section 30-22
of the Illinois Procurement Code as applicable as it
applies to responsible bidders, and the Illinois
Professional Land Surveyor Act of 1989; and
(3) any other applicable State or federal standards.
Section 6-10. Highway projects under Act considered part
of State highway system. Each highway project constructed or
operated under this Act is considered to be part of:
(1) the State highway system for purposes of
identification, maintenance standards, and enforcement of

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traffic laws if the highway project is under the
jurisdiction of the Department;
(2) the toll highway system for purposes of
identification, maintenance standards, and enforcement of
traffic laws if the highway project is under the
jurisdiction of the Authority; or
(3) a country or municipal road system for purposes of
identification, maintenance standards, and enforcement of
traffic laws if the highway or road project is under the
jurisdiction of a county or municipality.
Section 6-15. Service agreements. Any unit of local
government or State agency may enter into agreements with the
contractor for maintenance or other services under this Act.
Section 6-20. Cooperation with federal and local agencies.
The responsible public entity shall seek the cooperation of
federal and local agencies to expedite all necessary federal
and local permits, licenses, and approvals necessary for
projects under this Act.
Article 7. Taxation of Contractors
Section 7-5. Exemptions from property taxes. A project
under this Act and tangible personal property used exclusively
in connection with a project that are:

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(1) owned by the responsible public entity and leased,
licensed, financed, or otherwise conveyed to a contractor;
or
(2) acquired, constructed, or otherwise provided by a
contractor on behalf of the responsible public entity.
Under the terms of a public-private agreement are
considered to be public property devoted to an essential
public and governmental function and purpose. The property,
and a contractor's leasehold estate or interests in the
property, are exempt from all ad valorem property taxes and
special assessments levied against property by the State or
any political subdivision of the State.
Section 7-10. Exemptions from retail and use taxes. A
contractor or any other person purchasing tangible personal
property for incorporation into or improvement of a structure
or facility constituting or becoming part of the land included
in a project is entitled to the exemption from retail tax and
use tax provided under the Retailers' Occupation Tax Act and
Use Tax Act, respectively, with respect to that tangible
personal property.
Section 7-15. Taxation of income. Income received by a
contractor under the terms of a public-private agreement is
subject to taxation in the same manner as income received by
other private entities.

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Article 8. Financial Arrangements
Section 8-5. Actions to obtain credit assistance. The
responsible public entity may do any combination of applying
for, executing, or endorsing applications submitted by private
entities to obtain federal, State, or local credit assistance
for qualifying projects developed, financed, or operated under
this Act, including loans, lines of credit, and guarantees.
Section 8-10. Actions to obtain assistance. The
responsible public entity may take any action to obtain
federal, State, or local assistance for a qualifying project
that serves the public purpose of this Act and may enter into
any contracts required to receive the federal assistance. The
responsible public entity may determine that it serves the
public purpose of this Act for all or any portion of the costs
of a qualifying project to be paid, directly or indirectly,
from the proceeds of a grant or loan, line of credit, or loan
guarantee made by a local, State, or federal government or any
agency or instrumentality of a local, State, or federal
government. Such assistance may include, but not be limited
to, federal credit assistance pursuant to the Transportation
Infrastructure Finance and Innovation Act and the Water
Infrastructure and Finance and Innovation Act.

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Section 8-15. Grants or loans from amounts received from
governments. The responsible public entity may agree to make
grants or loans for the development, financing, or operation
of a qualifying project from time to time, from amounts
received from the federal, State, or local government or any
agency or instrumentality of the federal, State, or local
government.
Section 8-20. Terms and conditions of financing. Any
financing of a qualifying project may be in the amounts for the
term, and upon other terms and conditions that are determined
by the parties to the public-private agreement and the
financing shall not exceed the life of the qualifying project,
not to exceed 75 years.
Section 8-25. General powers for the purpose of financing.
For the purpose of financing a qualifying project, the
contractor and the responsible public entity may do the
following:
(1) Propose to use any and all of the revenues
generated by a qualifying project to pay principal,
interest, costs of operation and maintenance of a
qualifying project.
(2) Enter into grant agreements.
(3) Access any other funds for design, construction,
operation or maintenance of a qualifying project available

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to the responsible public entity or private entity,
including public or private pension funds.
(4) Accept grants from the responsible public entity
or other public or private agency or entity.
(5) Enter into a lease with a private entity for a
qualifying project and may lease a qualifying project to a
contractor under a public-private agreement.
(6) Pay lease rentals for leases that the responsible
public entity has entered into under this Act that secure
bonds or debts issued or approved under this Article from
any legally available revenues, including:
(A) payments received from a contractor;
(B) federal highway revenues;
(C) distributions from the State highway fund; and
(D) other funds available to the responsible
public entity for such purpose.
Section 8-30. Debt.
(a) For the purpose of financing a qualifying project, the
responsible public entity may by resolution borrow money and
enter into agreements, leases, contracts or subleases with a
private entity, and do the following:
(1) Issue, sell, and refund bonds, notes of the
responsible public entity, debt, or other debt
obligations.
(2) Enter into loan agreements or other credit

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facilities.
(3) Secure any financing with a pledge of revenues,
security interest in, or lien on all or part of a property
subject to the agreement, including all of the party's
property interests in the qualifying project.
(b) Any term of such debt shall not exceed the earlier of
the term of the public-private agreement, the life of the
qualifying project or 75 years.
(c) The bonds, notes, and other forms of debt issued under
this Article:
(1) constitute the corporate obligations of the
responsible public entity;
(2) do not constitute an indebtedness of the State
within the meaning or application of any constitutional
provision or limitation; and
(3) are payable solely as to both principal and
interest and other associated fees from:
(A) the revenues from a lease to the responsible
public entity, if any;
(B) proceeds of bonds or notes, if any;
(C) investment earnings on proceeds of bonds or
notes; or
(D) other funds available to the responsible
public entity for such purpose.
Section 8-35. Use of public funds for financing. For the

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purpose of financing a qualifying project, public funds,
including public or private pension funds, may be used and
aggregated with funds provided by or on behalf of the
contractor or other private entities. The use of public funds
to finance all or a portion of qualifying projects authorized
under this Article 8 constitutes authorized investments as
provided in Section 2 of the Public Funds Investment Act.
Section 8-40. Private activity bonds for purpose of
financing. For the purpose of financing a qualifying project,
a responsible public entity is authorized to do any
combination of applying for, executing, or endorsing
applications for an allocation of tax-exempt bond financing
authorization provided by the United States Internal Revenue
Code, as well as financing available under any other federal
law or program.
Section 8-45. Debt limitations. Any bonds, debt, or other
securities or other financing issued by or on behalf of a
contractor for the purposes of a project undertaken under this
Act shall not be deemed to constitute a debt of the responsible
public entity, the State, or any political subdivision of the
State or a pledge of the faith and credit of the responsible
public entity, the State, or any political subdivision of the
State, for purposes of debt limitation.

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Article 9. Acquisition of Property
Section 9-5. General. The responsible public entity may
exercise any power of condemnation or eminent domain,
including quick-take powers, that it has under law, for the
purpose of acquiring any lands or estates or interests in land
for a qualifying project to the extent provided in the
public-private agreement or otherwise to the extent that the
responsible public entity finds that the action serves the
public purpose of this Act and deems it appropriate in the
exercise of its powers under this Act.
Section 9-10. Entering into grants of property interests.
The responsible public entity and a private entity may enter
into the leases, licenses, easements, and other grants of
property that the responsible public entity determines
necessary to carry out this Act.
Article 10. Law Enforcement
Section 10-5. Powers and jurisdiction within limits of
qualifying project.
(a) All law enforcement officers of the State and of each
affected jurisdiction have the same powers and jurisdiction
within the limits of the qualifying project as they have in
their respective areas of jurisdiction.

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(b) Law enforcement officers shall have access to the
qualifying project at any time for the purpose of exercising
the law enforcement officers' powers and jurisdiction.
Section 10-10. Application of traffic and motor vehicle
laws; punishment for infractions.
(a) The traffic and motor vehicle laws of the State or, if
applicable, any local jurisdiction shall be the same as those
applying to conduct on similar projects in the State or the
local jurisdiction.
(b) Punishment for infractions and offenses shall be as
prescribed by law for conduct occurring on similar projects in
the State or the local jurisdiction.
Section 10-15. Law enforcement assistance.
(a) Each responsible public entity may enter into an
agreement between and among the private entity, the
responsible public entity, and the Illinois State Police or
other appropriate policing authority where the project is
located concerning the provision of law enforcement assistance
with respect to a qualifying project that is the subject of a
public-private agreement under this Act.
(b) Each responsible public entity is authorized to enter
into arrangements with the appropriate policing unit related
to costs incurred in providing law enforcement assistance
under this Act.

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Article 11. Additional Powers of Responsible Public Entity
with Respect to Qualifying Projects
Section 11-5. Contracts and agreements necessary to
performance of duties and execution of powers. Each
responsible public entity may make and enter into all
contracts and agreements necessary or incidental to the
performance of the responsible public entity's duties and the
execution of the responsible public entity's powers under this
Act. Except as otherwise required by law, these contracts or
agreements are not subject to any appropriation or approvals
other than the approval of the responsible public entity and
may be for any term of years and contain any terms that are
considered reasonable by the responsible public entity.
Section 11-10. Payment of costs. A responsible public
entity may pay the costs incurred under a public-private
agreement entered into under this Act from any funds available
to the responsible public entity under this Act or any other
statute.
Section 11-15. Action that would impair agreement
prohibited. A responsible public entity or other State or
local government may not take any action that would impair a
public-private agreement entered into under this Act.

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Article 12. Amendatory Provisions
Section 12-5. The Freedom of Information Act is amended by
changing Section 7.5 as follows:
(5 ILCS 140/7.5)
Sec. 7.5. Statutory exemptions. To the extent provided for
by the statutes referenced below, the following shall be
exempt from inspection and copying:
(a) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(b) Library circulation and order records identifying
library users with specific materials under the Library
Records Confidentiality Act.
(c) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other
records prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(d) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmissible
disease or any information the disclosure of which is

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restricted under the Illinois Sexually Transmissible
Disease Control Act.
(e) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
(f) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(g) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(h) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act, and
records of any lawfully created State or local inspector
general's office that would be exempt if created or
obtained by an Executive Inspector General's office under
that Act.
(i) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a
local emergency energy plan ordinance that is adopted
under Section 11-21.5-5 of the Illinois Municipal Code.
(j) Information and data concerning the distribution
of surcharge moneys collected and remitted by carriers
under the Emergency Telephone System Act.
(k) Law enforcement officer identification information
or driver identification information compiled by a law
enforcement agency or the Department of Transportation

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under Section 11-212 of the Illinois Vehicle Code.
(l) Records and information provided to a residential
health care facility resident sexual assault and death
review team or the Executive Council under the Abuse
Prevention Review Team Act.
(m) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the
Capital Crimes Litigation Act. This subsection (n) shall
apply until the conclusion of the trial of the case, even
if the prosecution chooses not to pursue the death penalty
prior to trial or sentencing.
(o) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Department of Transportation under Sections 2705-300 and
2705-616 of the Department of Transportation Law of the
Civil Administrative Code of Illinois, the Regional
Transportation Authority under Section 2.11 of the

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Regional Transportation Authority Act, or the St. Clair
County Transit District under the Bi-State Transit Safety
Act.
(q) Information prohibited from being disclosed by the
Personnel Record Review Act.
(r) Information prohibited from being disclosed by the
Illinois School Student Records Act.
(s) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(t) All identified or deidentified health information
in the form of health data or medical records contained
in, stored in, submitted to, transferred by, or released
from the Illinois Health Information Exchange, and
identified or deidentified health information in the form
of health data and medical records of the Illinois Health
Information Exchange in the possession of the Illinois
Health Information Exchange Office due to its
administration of the Illinois Health Information
Exchange. The terms "identified" and "deidentified" shall
be given the same meaning as in the Health Insurance
Portability and Accountability Act of 1996, Public Law
104-191, or any subsequent amendments thereto, and any
regulations promulgated thereunder.
(u) Records and information provided to an independent
team of experts under the Developmental Disability and
Mental Health Safety Act (also known as Brian's Law).

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(v) Names and information of people who have applied
for or received Firearm Owner's Identification Cards under
the Firearm Owners Identification Card Act or applied for
or received a concealed carry license under the Firearm
Concealed Carry Act, unless otherwise authorized by the
Firearm Concealed Carry Act; and databases under the
Firearm Concealed Carry Act, records of the Concealed
Carry Licensing Review Board under the Firearm Concealed
Carry Act, and law enforcement agency objections under the
Firearm Concealed Carry Act.
(v-5) Records of the Firearm Owner's Identification
Card Review Board that are exempted from disclosure under
Section 10 of the Firearm Owners Identification Card Act.
(w) Personally identifiable information which is
exempted from disclosure under subsection (g) of Section
19.1 of the Toll Highway Act.
(x) Information which is exempted from disclosure
under Section 5-1014.3 of the Counties Code or Section
8-11-21 of the Illinois Municipal Code.
(y) Confidential information under the Adult
Protective Services Act and its predecessor enabling
statute, the Elder Abuse and Neglect Act, including
information about the identity and administrative finding
against any caregiver of a verified and substantiated
decision of abuse, neglect, or financial exploitation of
an eligible adult maintained in the Registry established

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under Section 7.5 of the Adult Protective Services Act.
(z) Records and information provided to a fatality
review team or the Illinois Fatality Review Team Advisory
Council under Section 15 of the Adult Protective Services
Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) Information which is or was prohibited from
disclosure by the Juvenile Court Act of 1987.
(cc) Recordings made under the Law Enforcement
Officer-Worn Body Camera Act, except to the extent
authorized under that Act.
(dd) Information that is prohibited from being
disclosed under Section 45 of the Condominium and Common
Interest Community Ombudsperson Act.
(ee) Information that is exempted from disclosure
under Section 30.1 of the Pharmacy Practice Act.
(ff) Information that is exempted from disclosure
under the Revised Uniform Unclaimed Property Act.
(gg) Information that is prohibited from being
disclosed under Section 7-603.5 of the Illinois Vehicle
Code.
(hh) Records that are exempt from disclosure under
Section 1A-16.7 of the Election Code.
(ii) Information which is exempted from disclosure
under Section 2505-800 of the Department of Revenue Law of

HB3927 - 69 - LRB103 31057 DTM 57677 b
the Civil Administrative Code of Illinois.
(jj) Information and reports that are required to be
submitted to the Department of Labor by registering day
and temporary labor service agencies but are exempt from
disclosure under subsection (a-1) of Section 45 of the Day
and Temporary Labor Services Act.
(kk) Information prohibited from disclosure under the
Seizure and Forfeiture Reporting Act.
(ll) Information the disclosure of which is restricted
and exempted under Section 5-30.8 of the Illinois Public
Aid Code.
(mm) Records that are exempt from disclosure under
Section 4.2 of the Crime Victims Compensation Act.
(nn) Information that is exempt from disclosure under
Section 70 of the Higher Education Student Assistance Act.
(oo) Communications, notes, records, and reports
arising out of a peer support counseling session
prohibited from disclosure under the First Responders
Suicide Prevention Act.
(pp) Names and all identifying information relating to
an employee of an emergency services provider or law
enforcement agency under the First Responders Suicide
Prevention Act.
(qq) Information and records held by the Department of
Public Health and its authorized representatives collected
under the Reproductive Health Act.

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(rr) Information that is exempt from disclosure under
the Cannabis Regulation and Tax Act.
(ss) Data reported by an employer to the Department of
Human Rights pursuant to Section 2-108 of the Illinois
Human Rights Act.
(tt) Recordings made under the Children's Advocacy
Center Act, except to the extent authorized under that
Act.
(uu) Information that is exempt from disclosure under
Section 50 of the Sexual Assault Evidence Submission Act.
(vv) Information that is exempt from disclosure under
subsections (f) and (j) of Section 5-36 of the Illinois
Public Aid Code.
(ww) Information that is exempt from disclosure under
Section 16.8 of the State Treasurer Act.
(xx) Information that is exempt from disclosure or
information that shall not be made public under the
Illinois Insurance Code.
(yy) Information prohibited from being disclosed under
the Illinois Educational Labor Relations Act.
(zz) Information prohibited from being disclosed under
the Illinois Public Labor Relations Act.
(aaa) Information prohibited from being disclosed
under Section 1-167 of the Illinois Pension Code.
(bbb) Information that is prohibited from disclosure
by the Illinois Police Training Act and the Illinois State

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Police Act.
(ccc) Records exempt from disclosure under Section
2605-304 of the Illinois State Police Law of the Civil
Administrative Code of Illinois.
(ddd) Information prohibited from being disclosed
under Section 35 of the Address Confidentiality for
Victims of Domestic Violence, Sexual Assault, Human
Trafficking, or Stalking Act.
(eee) Information prohibited from being disclosed
under subsection (b) of Section 75 of the Domestic
Violence Fatality Review Act.
(fff) Images from cameras under the Expressway Camera
Act. This subsection (fff) is inoperative on and after
July 1, 2023.
(ggg) Information prohibited from disclosure under
paragraph (3) of subsection (a) of Section 14 of the Nurse
Agency Licensing Act.
(hhh) Information submitted to the Illinois Department
of State Police in an affidavit or application for an
assault weapon endorsement, assault weapon attachment
endorsement, .50 caliber rifle endorsement, or .50 caliber
cartridge endorsement under the Firearm Owners
Identification Card Act.
(iii) Information that is exempt from disclosure under
Section 3-20 of the Public-Private Partnership Act.
(Source: P.A. 101-13, eff. 6-12-19; 101-27, eff. 6-25-19;

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101-81, eff. 7-12-19; 101-221, eff. 1-1-20; 101-236, eff.
1-1-20; 101-375, eff. 8-16-19; 101-377, eff. 8-16-19; 101-452,
eff. 1-1-20; 101-466, eff. 1-1-20; 101-600, eff. 12-6-19;
101-620, eff 12-20-19; 101-649, eff. 7-7-20; 101-652, eff.
1-1-22; 101-656, eff. 3-23-21; 102-36, eff. 6-25-21; 102-237,
eff. 1-1-22; 102-292, eff. 1-1-22; 102-520, eff. 8-20-21;
102-559, eff. 8-20-21; 102-813, eff. 5-13-22; 102-946, eff.
7-1-22; 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; revised
2-13-23.)
Section 12-10. The Public Funds Investment Act is amended
by changing Section 2 as follows:
(30 ILCS 235/2) (from Ch. 85, par. 902)
Sec. 2. Authorized investments.
(a) Any public agency may invest any public funds as
follows:
(1) in bonds, notes, certificates of indebtedness,
treasury bills or other securities now or hereafter
issued, which are guaranteed by the full faith and credit
of the United States of America as to principal and
interest;
(2) in bonds, notes, debentures, or other similar
obligations of the United States of America, its agencies,
and its instrumentalities;
(3) in interest-bearing savings accounts,

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interest-bearing certificates of deposit or
interest-bearing time deposits or any other investments
constituting direct obligations of any bank as defined by
the Illinois Banking Act;
(4) in short-term obligations of corporations
organized in the United States with assets exceeding
$500,000,000 if (i) such obligations are rated at the time
of purchase at one of the 3 highest classifications
established by at least 2 standard rating services and
which mature not later than 270 days from the date of
purchase, (ii) such purchases do not exceed 10% of the
corporation's outstanding obligations, and (iii) no more
than one-third of the public agency's funds may be
invested in short-term obligations of corporations under
this paragraph (4);
(4.5) in obligations of corporations organized in the
United States with assets exceeding $500,000,000 if (i)
such obligations are rated at the time of purchase at one
of the 3 highest classifications established by at least 2
standard rating services and which mature more than 270
days but less than 3 years from the date of purchase, (ii)
such purchases do not exceed 10% of the corporation's
outstanding obligations, and (iii) no more than one-third
of the public agency's funds may be invested in
obligations of corporations under this paragraph (4.5); or
(5) in money market mutual funds registered under the

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Investment Company Act of 1940, provided that the
portfolio of any such money market mutual fund is limited
to obligations described in paragraph (1) or (2) of this
subsection and to agreements to repurchase such
obligations.
(a-1) In addition to any other investments authorized
under this Act, a municipality, park district, forest preserve
district, conservation district, county, or other governmental
unit may invest its public funds in interest bearing bonds of
any county, township, city, village, incorporated town,
municipal corporation, or school district, of the State of
Illinois, of any other state, or of any political subdivision
or agency of the State of Illinois or of any other state,
whether the interest earned thereon is taxable or tax-exempt
under federal law. The bonds shall be registered in the name of
the municipality, park district, forest preserve district,
conservation district, county, or other governmental unit, or
held under a custodial agreement at a bank. The bonds shall be
rated at the time of purchase within the 4 highest general
classifications established by a rating service of nationally
recognized expertise in rating bonds of states and their
political subdivisions.
(b) Investments may be made only in banks which are
insured by the Federal Deposit Insurance Corporation. Any
public agency may invest any public funds in short term
discount obligations of the Federal National Mortgage

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Association or in shares or other forms of securities legally
issuable by savings banks or savings and loan associations
incorporated under the laws of this State or any other state or
under the laws of the United States. Investments may be made
only in those savings banks or savings and loan associations
the shares, or investment certificates of which are insured by
the Federal Deposit Insurance Corporation. Any such securities
may be purchased at the offering or market price thereof at the
time of such purchase. All such securities so purchased shall
mature or be redeemable on a date or dates prior to the time
when, in the judgment of such governing authority, the public
funds so invested will be required for expenditure by such
public agency or its governing authority. The expressed
judgment of any such governing authority as to the time when
any public funds will be required for expenditure or be
redeemable is final and conclusive. Any public agency may
invest any public funds in dividend-bearing share accounts,
share certificate accounts or class of share accounts of a
credit union chartered under the laws of this State or the laws
of the United States; provided, however, the principal office
of any such credit union must be located within the State of
Illinois. Investments may be made only in those credit unions
the accounts of which are insured by applicable law.
(c) For purposes of this Section, the term "agencies of
the United States of America" includes: (i) the federal land
banks, federal intermediate credit banks, banks for

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cooperative, federal farm credit banks, or any other entity
authorized to issue debt obligations under the Farm Credit Act
of 1971 (12 U.S.C. 2001 et seq.) and Acts amendatory thereto;
(ii) the federal home loan banks and the federal home loan
mortgage corporation; and (iii) any other agency created by
Act of Congress.
(d) Except for pecuniary interests permitted under
subsection (f) of Section 3-14-4 of the Illinois Municipal
Code or under Section 3.2 of the Public Officer Prohibited
Practices Act, no person acting as treasurer or financial
officer or who is employed in any similar capacity by or for a
public agency may do any of the following:
(1) have any interest, directly or indirectly, in any
investments in which the agency is authorized to invest.
(2) have any interest, directly or indirectly, in the
sellers, sponsors, or managers of those investments.
(3) receive, in any manner, compensation of any kind
from any investments in which the agency is authorized to
invest.
(e) Any public agency may also invest any public funds in a
Public Treasurers' Investment Pool created under Section 17 of
the State Treasurer Act. Any public agency may also invest any
public funds in a fund managed, operated, and administered by
a bank, subsidiary of a bank, or subsidiary of a bank holding
company or use the services of such an entity to hold and
invest or advise regarding the investment of any public funds.

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(f) To the extent a public agency has custody of funds not
owned by it or another public agency and does not otherwise
have authority to invest such funds, the public agency may
invest such funds as if they were its own. Such funds must be
released to the appropriate person at the earliest reasonable
time, but in no case exceeding 31 days, after the private
person becomes entitled to the receipt of them. All earnings
accruing on any investments or deposits made pursuant to the
provisions of this Act shall be credited to the public agency
by or for which such investments or deposits were made, except
as provided otherwise in Section 4.1 of the State Finance Act
or the Local Governmental Tax Collection Act, and except where
by specific statutory provisions such earnings are directed to
be credited to and paid to a particular fund.
(g) A public agency may purchase or invest in repurchase
agreements of government securities having the meaning set out
in the Government Securities Act of 1986, as now or hereafter
amended or succeeded, subject to the provisions of said Act
and the regulations issued thereunder. The government
securities, unless registered or inscribed in the name of the
public agency, shall be purchased through banks or trust
companies authorized to do business in the State of Illinois.
(h) Except for repurchase agreements of government
securities which are subject to the Government Securities Act
of 1986, as now or hereafter amended or succeeded, no public
agency may purchase or invest in instruments which constitute

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repurchase agreements, and no financial institution may enter
into such an agreement with or on behalf of any public agency
unless the instrument and the transaction meet the following
requirements:
(1) The securities, unless registered or inscribed in
the name of the public agency, are purchased through banks
or trust companies authorized to do business in the State
of Illinois.
(2) An authorized public officer after ascertaining
which firm will give the most favorable rate of interest,
directs the custodial bank to "purchase" specified
securities from a designated institution. The "custodial
bank" is the bank or trust company, or agency of
government, which acts for the public agency in connection
with repurchase agreements involving the investment of
funds by the public agency. The State Treasurer may act as
custodial bank for public agencies executing repurchase
agreements. To the extent the Treasurer acts in this
capacity, he is hereby authorized to pass through to such
public agencies any charges assessed by the Federal
Reserve Bank.
(3) A custodial bank must be a member bank of the
Federal Reserve System or maintain accounts with member
banks. All transfers of book-entry securities must be
accomplished on a Reserve Bank's computer records through
a member bank of the Federal Reserve System. These

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securities must be credited to the public agency on the
records of the custodial bank and the transaction must be
confirmed in writing to the public agency by the custodial
bank.
(4) Trading partners shall be limited to banks or
trust companies authorized to do business in the State of
Illinois or to registered primary reporting dealers.
(5) The security interest must be perfected.
(6) The public agency enters into a written master
repurchase agreement which outlines the basic
responsibilities and liabilities of both buyer and seller.
(7) Agreements shall be for periods of 330 days or
less.
(8) The authorized public officer of the public agency
informs the custodial bank in writing of the maturity
details of the repurchase agreement.
(9) The custodial bank must take delivery of and
maintain the securities in its custody for the account of
the public agency and confirm the transaction in writing
to the public agency. The Custodial Undertaking shall
provide that the custodian takes possession of the
securities exclusively for the public agency; that the
securities are free of any claims against the trading
partner; and any claims by the custodian are subordinate
to the public agency's claims to rights to those
securities.

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(10) The obligations purchased by a public agency may
only be sold or presented for redemption or payment by the
fiscal agent bank or trust company holding the obligations
upon the written instruction of the public agency or
officer authorized to make such investments.
(11) The custodial bank shall be liable to the public
agency for any monetary loss suffered by the public agency
due to the failure of the custodial bank to take and
maintain possession of such securities.
(i) Notwithstanding the foregoing restrictions on
investment in instruments constituting repurchase agreements
the Illinois Housing Development Authority may invest in, and
any financial institution with capital of at least
$250,000,000 may act as custodian for, instruments that
constitute repurchase agreements, provided that the Illinois
Housing Development Authority, in making each such investment,
complies with the safety and soundness guidelines for engaging
in repurchase transactions applicable to federally insured
banks, savings banks, savings and loan associations or other
depository institutions as set forth in the Federal Financial
Institutions Examination Council Policy Statement Regarding
Repurchase Agreements and any regulations issued, or which may
be issued by the supervisory federal authority pertaining
thereto and any amendments thereto; provided further that the
securities shall be either (i) direct general obligations of,
or obligations the payment of the principal of and/or interest

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on which are unconditionally guaranteed by, the United States
of America or (ii) any obligations of any agency, corporation
or subsidiary thereof controlled or supervised by and acting
as an instrumentality of the United States Government pursuant
to authority granted by the Congress of the United States and
provided further that the security interest must be perfected
by either the Illinois Housing Development Authority, its
custodian or its agent receiving possession of the securities
either physically or transferred through a nationally
recognized book entry system.
(j) In addition to all other investments authorized under
this Section, a community college district may invest public
funds in any mutual funds that invest primarily in corporate
investment grade or global government short term bonds.
Purchases of mutual funds that invest primarily in global
government short term bonds shall be limited to funds with
assets of at least $100 million and that are rated at the time
of purchase as one of the 10 highest classifications
established by a recognized rating service. The investments
shall be subject to approval by the local community college
board of trustees. Each community college board of trustees
shall develop a policy regarding the percentage of the
college's investment portfolio that can be invested in such
funds.
(k) In addition to all other investments authorized under
this Section, a public agency may invest in a financial

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arrangement that finances a qualifying project authorized
under Article 8 of the Public-Private Partnership Act.
Nothing in this Section shall be construed to authorize an
intergovernmental risk management entity to accept the deposit
of public funds except for risk management purposes.
(Source: P.A. 102-285, eff. 8-6-21.)