96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4566


 
Introduced 5/20/2009, by Rep. Chapin Rose
 
SYNOPSIS AS INTRODUCED:
 		













110 ILCS 305/45 new






110 ILCS 520/30 new






110 ILCS 660/5-140 new






110 ILCS 665/10-140 new






110 ILCS 670/15-140 new






110 ILCS 675/20-145 new






110 ILCS 680/25-140 new






110 ILCS 685/30-150 new






110 ILCS 690/35-145 new










    Amends various Acts relating to the governance of public universities in Illinois.  Prohibits the governing board of each public university from participating in the creation of any university-related organization (defined as a foundation, athletic association, alumni association, or corporate outgrowth), unless there is a written contract between the board and the university-related organization setting forth the terms and conditions of the agreement.  Provides that the contract must require the university-related organization to consent to enter into a written agreement with the Auditor General providing for an audit of the university-related organization at least once every 2 years by the Auditor General.  Provides that any contracts  between the board and university-related organizations existing on the effective date of the amendatory Act must be amended as soon as possible to require the university-related organization's consent to an audit by the Auditor General as a condition of the university's continued affiliation with the university-related organization.
















LRB096 12956 NHT 26965 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4566

LRB096 12956 NHT 26965 b






1
    AN ACT concerning higher education.

 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:


 
4
    Section 5. The University of Illinois Act is amended  by 
5
adding Section 45 as follows:
 
6
    (110 ILCS 305/45  new)
7
    Sec. 45. University-related organization; audit.
8
    (a)  In this Section, "university-related organization" 
9
means a foundation, athletic association, alumni association, 
10
or corporate outgrowth.
11
    (b)  The Board of Trustees shall not participate in the 
12
creation of any university-related organization, unless there 
13
is a written contract between the Board of Trustees and the 
14
university-related organization setting forth the terms and 
15
conditions of the agreement.  The contract must require the 
16
university-related organization to consent to enter into a 
17
written agreement with the Auditor General providing for an 
18
audit of the university-related organization at least once 
19
every 2 years by the Auditor General.  Any contracts between the 
20
Board of Trustees and university-related organizations 
21
existing on the effective date of this amendatory Act of the 
22
96th General Assembly must be amended as soon as possible to 
23
require the university-related organization's consent to an 
 


 






HB4566
- 2 -
LRB096 12956 NHT 26965 b




1
audit by the Auditor General as a condition of the University's 
2
continued affiliation with the university-related 
3
organization. 
 
4
    Section 10. The Southern Illinois University Management 
5
Act is amended  by adding Section 30 as follows:
 
6
    (110 ILCS 520/30  new)
7
    Sec. 30. University-related organization; audit.
8
    (a)  In this Section, "university-related organization" 
9
means a foundation, athletic association, alumni association, 
10
or corporate outgrowth.
11
    (b)  The Board shall not participate in the creation of any 
12
university-related organization, unless there is a written 
13
contract between the Board and the university-related 
14
organization setting forth the terms and conditions of the 
15
agreement.  The contract must require the university-related 
16
organization to consent to enter into a written agreement with 
17
the Auditor General providing for an audit of the 
18
university-related organization at least once every 2 years by 
19
the Auditor General.  Any contracts between the Board and 
20
university-related organizations existing on the effective 
21
date of this amendatory Act of the 96th General Assembly must 
22
be amended as soon as possible to require the 
23
university-related organization's consent to an audit by the 
24
Auditor General as a condition of the University's continued 
 


 






HB4566
- 3 -
LRB096 12956 NHT 26965 b




1
affiliation with the university-related organization. 
 
2
    Section 15. The Chicago State University Law is amended  by 
3
adding Section 5-140 as follows:
 
4
    (110 ILCS 660/5-140  new)
5
    Sec. 5-140. University-related organization; audit.
6
    (a)  In this Section, "university-related organization" 
7
means a foundation, athletic association, alumni association, 
8
or corporate outgrowth.
9
    (b)  The Board shall not participate in the creation of any 
10
university-related organization, unless there is a written 
11
contract between the Board and the university-related 
12
organization setting forth the terms and conditions of the 
13
agreement.  The contract must require the university-related 
14
organization to consent to enter into a written agreement with 
15
the Auditor General providing for an audit of the 
16
university-related organization at least once every 2 years by 
17
the Auditor General.  Any contracts between the Board and 
18
university-related organizations existing on the effective 
19
date of this amendatory Act of the 96th General Assembly must 
20
be amended as soon as possible to require the 
21
university-related organization's consent to an audit by the 
22
Auditor General as a condition of the University's continued 
23
affiliation with the university-related organization. 
 
 


 






HB4566
- 4 -
LRB096 12956 NHT 26965 b




1
    Section 20. The Eastern Illinois University Law is amended  
2
by adding Section 10-140 as follows:
 
3
    (110 ILCS 665/10-140  new)
4
    Sec. 10-140. University-related organization; audit.
5
    (a)  In this Section, "university-related organization" 
6
means a foundation, athletic association, alumni association, 
7
or corporate outgrowth.
8
    (b)  The Board shall not participate in the creation of any 
9
university-related organization, unless there is a written 
10
contract between the Board and the university-related 
11
organization setting forth the terms and conditions of the 
12
agreement.  The contract must require the university-related 
13
organization to consent to enter into a written agreement with 
14
the Auditor General providing for an audit of the 
15
university-related organization at least once every 2 years by 
16
the Auditor General.  Any contracts between the Board and 
17
university-related organizations existing on the effective 
18
date of this amendatory Act of the 96th General Assembly must 
19
be amended as soon as possible to require the 
20
university-related organization's consent to an audit by the 
21
Auditor General as a condition of the University's continued 
22
affiliation with the university-related organization. 
 
23
    Section 25. The Governors State University Law is amended  
24
by adding Section 15-140 as follows:
 
 


 






HB4566
- 5 -
LRB096 12956 NHT 26965 b




1
    (110 ILCS 670/15-140  new)
2
    Sec. 15-140. University-related organization; audit.
3
    (a)  In this Section, "university-related organization" 
4
means a foundation, athletic association, alumni association, 
5
or corporate outgrowth.
6
    (b)  The Board shall not participate in the creation of any 
7
university-related organization, unless there is a written 
8
contract between the Board and the university-related 
9
organization setting forth the terms and conditions of the 
10
agreement.  The contract must require the university-related 
11
organization to consent to enter into a written agreement with 
12
the Auditor General providing for an audit of the 
13
university-related organization at least once every 2 years by 
14
the Auditor General.  Any contracts between the Board and 
15
university-related organizations existing on the effective 
16
date of this amendatory Act of the 96th General Assembly must 
17
be amended as soon as possible to require the 
18
university-related organization's consent to an audit by the 
19
Auditor General as a condition of the University's continued 
20
affiliation with the university-related organization. 
 
21
    Section 30. The Illinois State University Law is amended  by 
22
adding Section 20-145 as follows:
 
23
    (110 ILCS 675/20-145  new)
 


 






HB4566
- 6 -
LRB096 12956 NHT 26965 b




1
    Sec. 20-145. University-related organization; audit.
2
    (a)  In this Section, "university-related organization" 
3
means a foundation, athletic association, alumni association, 
4
or corporate outgrowth.
5
    (b)  The Board shall not participate in the creation of any 
6
university-related organization, unless there is a written 
7
contract between the Board and the university-related 
8
organization setting forth the terms and conditions of the 
9
agreement.  The contract must require the university-related 
10
organization to consent to enter into a written agreement with 
11
the Auditor General providing for an audit of the 
12
university-related organization at least once every 2 years by 
13
the Auditor General.  Any contracts between the Board and 
14
university-related organizations existing on the effective 
15
date of this amendatory Act of the 96th General Assembly must 
16
be amended as soon as possible to require the 
17
university-related organization's consent to an audit by the 
18
Auditor General as a condition of the University's continued 
19
affiliation with the university-related organization. 
 
20
    Section 35. The Northeastern Illinois University Law is 
21
amended  by adding Section 25-140 as follows:
 
22
    (110 ILCS 680/25-140  new)
23
    Sec. 25-140. University-related organization; audit.
24
    (a)  In this Section, "university-related organization" 
 


 






HB4566
- 7 -
LRB096 12956 NHT 26965 b




1
means a foundation, athletic association, alumni association, 
2
or corporate outgrowth.
3
    (b)  The Board shall not participate in the creation of any 
4
university-related organization, unless there is a written 
5
contract between the Board and the university-related 
6
organization setting forth the terms and conditions of the 
7
agreement.  The contract must require the university-related 
8
organization to consent to enter into a written agreement with 
9
the Auditor General providing for an audit of the 
10
university-related organization at least once every 2 years by 
11
the Auditor General.  Any contracts between the Board and 
12
university-related organizations existing on the effective 
13
date of this amendatory Act of the 96th General Assembly must 
14
be amended as soon as possible to require the 
15
university-related organization's consent to an audit by the 
16
Auditor General as a condition of the University's continued 
17
affiliation with the university-related organization. 
 
18
    Section 40. The Northern Illinois University Law is amended  
19
by adding Section 30-150 as follows:
 
20
    (110 ILCS 685/30-150  new)
21
    Sec. 30-150. University-related organization; audit.
22
    (a)  In this Section, "university-related organization" 
23
means a foundation, athletic association, alumni association, 
24
or corporate outgrowth.
 


 






HB4566
- 8 -
LRB096 12956 NHT 26965 b




1
    (b)  The Board shall not participate in the creation of any 
2
university-related organization, unless there is a written 
3
contract between the Board and the university-related 
4
organization setting forth the terms and conditions of the 
5
agreement.  The contract must require the university-related 
6
organization to consent to enter into a written agreement with 
7
the Auditor General providing for an audit of the 
8
university-related organization at least once every 2 years by 
9
the Auditor General.  Any contracts between the Board and 
10
university-related organizations existing on the effective 
11
date of this amendatory Act of the 96th General Assembly must 
12
be amended as soon as possible to require the 
13
university-related organization's consent to an audit by the 
14
Auditor General as a condition of the University's continued 
15
affiliation with the university-related organization. 
 
16
    Section 45. The Western Illinois University Law is amended  
17
by adding Section 35-145 as follows:
 
18
    (110 ILCS 690/35-145  new)
19
    Sec. 35-145. University-related organization; audit.
20
    (a)  In this Section, "university-related organization" 
21
means a foundation, athletic association, alumni association, 
22
or corporate outgrowth.
23
    (b)  The Board shall not participate in the creation of any 
24
university-related organization, unless there is a written 
 


 






HB4566
- 9 -
LRB096 12956 NHT 26965 b




1
contract between the Board and the university-related 
2
organization setting forth the terms and conditions of the 
3
agreement.  The contract must require the university-related 
4
organization to consent to enter into a written agreement with 
5
the Auditor General providing for an audit of the 
6
university-related organization at least once every 2 years by 
7
the Auditor General.  Any contracts between the Board and 
8
university-related organizations existing on the effective 
9
date of this amendatory Act of the 96th General Assembly must 
10
be amended as soon as possible to require the 
11
university-related organization's consent to an audit by the 
12
Auditor General as a condition of the University's continued 
13
affiliation with the university-related organization.