COULSON, SILVA AND SCHMITZ.
TOLL HWY-CONT AND ANNUAL APPR
Synopsis of Bill as introduced:
Amends the Toll Highway Act. Provides that the Toll Highway Act
shall constitute an irrevocable and continuing appropriation from the
Illinois State Toll Highway Authority Fund for amounts to pay
principal, interest, and other bond expenses and obligations (instead
of the Fund being considered always appropriated for the purposes of
repayment of debt service and other bond obligations). Provides that
all other expenses, including ordinary and contingent expenses, are
subject to annual appropriation by the General Assembly from the Fund
(or from other funds as provided under a Section of the Act concerning
repayment of State funds) for each fiscal year. Provides that only
those amounts appropriated to the Authority other than from the Fund
shall be repaid.
HOUSE AMENDMENT NO. 1.
Adds reference to:
605 ILCS 10/14.1 from Ch. 121, par. 100-14.1
605 ILCS 10/23 from Ch. 121, par. 100-23
Deletes everything. Reinserts the provisions of the original
bill, with additions. Amends the Toll Highway Act. Provides that
before bonds may be issued for or construction may be commenced on any
new segment of toll highway, the issuance of bonds for or the
commencement of construction of that particular segment must be
approved by the General Assembly by law (rather than being authorized
by joint resolution of the General Assembly). Provides that any
general increase in toll rates must have the prior approval of the
General Assembly, by a three-fifths majority vote. Provides that the
Toll Highway Authority may issue bonds to implement its capital plan
only in amounts and for purposes that have been approved by law.
Provides that for all outstanding bonds issued by the Authority before
the effective date of the amendatory Act, the State guarantees the
timely payment of any principal or interest that is not paid by the
Authority when due, with recourse to the Court of Claims. The
Authority shall, with respect to all revenue bonds outstanding as of
the effective date of the amendatory Act, maintain in a debt service
fund an amount equal to 140% of the amount needed to pay annual debt
service or the bonds.
STATE DEBT NOTE, H-AM 1 (Economic and Fiscal Commission)
HB 3423, as amended by House Amendment #1 would not change the
amount of authorization for any type of State-issued or
State-supported bond, and, therefore, would not affect the
level of State indebtedness.
FISCAL NOTE, H-AM 1 (State Toll Highway Authority)
This legislation makes a fundamental change in the credit
structure of the Authority's debt, which is likely to require
refunding of outstanding bonds. Based on the costs of refund-
ing these bonds, and the loss of tax exempt status on most
existing bond issues, this legislation is estimated to require
$100 million in increased debt payments on the Authority's
current bond debt. The Authority's entire $860 million debt
amount would become a contingent liability of the State and
would impact the State's credit. The credit value and the
dollar impact of this guarantee are difficult to quantify,
especially because the State's obligation to pay is subject
to legislative discretion through the Court of Claims process.
The bill also subjects the creditworthiness of the Authority
to possible further downgrade.
Last action on Bill: SESSION SINE DIE
Last action date: 01-01-09
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0
END OF INQUIRY
Full Text Bill Status