Public Act 093-1046
 
SB2263 Enrolled LRB093 15838 RCE 41455 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Findings; purpose; validation.
    (a) The General Assembly finds and declares that:
        (1) Public Act 88-669, effective November 29, 1994,
    contained provisions amending the Casual Deficit Act,
    including changing the name of that Act to the Short Term
    Borrowing Act. Public Act 88-669 also contained other
    provisions. The Short Term Borrowing Act has subsequently
    been amended by Public Act 93-674.
        (2) Questions have been raised concerning the validity
    and content of the Short Term Borrowing Act. The provisions
    of the Short Term Borrowing Act are of vital concern to the
    people of this State. Prompt legislative action concerning
    those provisions is necessary to ensure their continued
    effect.
    (b) The purpose of this Act is to re-enact the Short Term
Borrowing Act, as amended by Public Acts 88-669 and 93-674, and
to make revisory changes. This re-enactment is intended to
remove any question as to the validity and content of those
provisions and to validate all actions taken in reliance on
those provisions; it is not intended to supersede any other
Public Act that amends the text of the Short Term Borrowing Act
as set forth in this Act. The re-enacted material is shown in
this Act as existing text (i.e., without underscoring), and the
revisory changes are shown by striking and underscoring.
    (c) The re-enactment by this amendatory Act of the 93rd
General Assembly of the Short Term Borrowing Act is not
intended, and shall not be construed, to imply that Public Act
88-669 or 93-674 is invalid or to limit or impair any legal
argument concerning whether those provisions were
substantially re-enacted by other Public Acts.
    (d) All otherwise lawful actions taken before the effective
date of this amendatory Act of the 93rd General Assembly in
reliance on or pursuant to the provisions re-enacted by this
amendatory Act of the 93rd General Assembly, as set forth in
Public Act 88-669, or as subsequently amended, by any officer,
employee, or agency of State government or by any other person
or entity, are hereby validated. These actions include, but are
not limited to: borrowing; bidding, awarding, contracting, and
incurring debt; issuance and sale of certificates, bonds, and
other instruments for the payment of money; application of
moneys; transfer and deposit of moneys; and repayment of
principal and interest and other legal costs and expenses.
    (e) This amendatory Act of the 93rd General Assembly
applies, without limitation, to actions pending on or after the
effective date of this amendatory Act.
 
    Section 5. The Short Term Borrowing Act is amended by
re-enacting Sections 0.01, 1, and 1.1 and by re-enacting and
changing Sections 2 and 3 as follows:
 
    (30 ILCS 340/0.01)  (from Ch. 120, par. 405H)
    Sec. 0.01. Short title. This Act may be cited as the Short
Term Borrowing Act.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    (30 ILCS 340/1)  (from Ch. 120, par. 406)
    Sec. 1. Cash flow borrowing. Whenever significant timing
variations occur between disbursement and receipt of budgeted
funds within a fiscal year, making it necessary to borrow in
anticipation of revenues to be collected in a fiscal year, in
order to meet the same, the Governor, Comptroller and Treasurer
may contract debts, in an amount not exceeding 5% of the
State's appropriations for that fiscal year, and moneys thus
borrowed shall be applied to the purpose for which they were
obtained, or to pay the debts thus created, and to no other
purpose. All moneys so borrowed shall be repaid by the close of
the fiscal year in which borrowed.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    (30 ILCS 340/1.1)
    Sec. 1.1. Borrowing upon failures in revenue. Whenever
failures in revenues of the State occur, in order to meet those
failures, the Governor, Comptroller, and Treasurer may
contract debts in an amount not exceeding 15% of the State's
appropriations for that fiscal year. The moneys thus borrowed
shall be applied to the purposes for which they were obtained,
or to pay the debts thus created by the borrowing, and to no
other purpose. Before incurring debt under this Section, the
Governor shall give written notice to the Clerk of the House of
Representatives, the Secretary of the Senate, and the Secretary
of State setting forth the reasons for the proposed borrowing
and the corrective measures recommended to restore the State's
fiscal soundness. The notice shall be a public record and open
for inspection at the offices of the Secretary of State during
normal business hours. No debt may be incurred under this
Section until 30 days after the notice is served. All moneys so
borrowed shall be borrowed for no longer time than one year.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    (30 ILCS 340/2)  (from Ch. 120, par. 407)
    Sec. 2. Sale of certificates. For borrowing authorized
under Sections 1 and 1.1 of this Act, certificates may be
issued and sold from time to time, in one or more series, in
amounts, at prices and at interest rates, all as directed by
the Governor, Comptroller, and Treasurer. Bidders shall submit
sealed bids to the Director of the Governor's Office of
Management and Budget Bureau of the Budget upon such terms as
shall be approved by the Governor, Comptroller, and Treasurer
after such notice as shall be determined to be reasonable by
the Director of the Governor's Office of Management and Budget
Bureau of the Budget. The loan shall be awarded to the bidder
offering the lowest effective rate of interest not exceeding
the maximum rate authorized by the Bond Authorization Act as
amended at the time of the making of the contract.
    With respect to instruments for the payment of money issued
under this Section either before, on, or after the effective
date of this amendatory Act of 1989, it is and always has been
the intention of the General Assembly (i) that the Omnibus Bond
Acts are and always have been supplementary grants of power to
issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be
or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and
(iii) that instruments issued under this Section within the
supplementary authority granted by the Omnibus Bond Acts are
not invalid because of any provision of this Act that may
appear to be or to have been more restrictive than those Acts.
(Source: P.A. 88-669, eff. 11-29-94; revised 8-23-03.)
 
    (30 ILCS 340/3)  (from Ch. 120, par. 408)
    Sec. 3. There shall be prepared under the direction of the
officers named in this Act such form of bonds or certificates
as they shall deem advisable, which, when issued, shall be
signed by the Governor, Comptroller and Treasurer, and shall be
recorded by the Comptroller in a book to be kept by him or her
for that purpose. The interest and principal of such loan shall
be paid by the treasurer out of the General Obligation Bond
Retirement and Interest Fund.
    There is hereby appropriated out of any money in the
Treasury a sum sufficient for the payment of the interest and
principal of any debts contracted under this Act.
    The Governor, Comptroller, and Treasurer are authorized to
order pursuant to the proceedings authorizing those debts the
transfer of any moneys on deposit in the treasury into the
General Obligation Bond Retirement and Interest Fund at times
and in amounts they deem necessary to provide for the payment
of that interest and principal.
    The Comptroller is hereby authorized and directed to draw
his warrant on the State Treasurer for the amount of all such
payments.
    The directive authorizing borrowing under Section 1 or 1.1
of this Act shall set forth a pro forma cash flow statement
that identifies estimated monthly receipts and expenditures
with identification of sources for repaying the borrowed funds.
    All proceeds from any borrowing under this Act received by
the State on or after June 10, 2004 the effective date of this
amendatory Act of the 93rd General Assembly and before July 1,
2004 shall be deposited into the Medicaid Provider Relief Fund.
(Source: P.A. 88-669, eff. 11-29-94; 93-674, eff. 6-10-04.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 10/15/2004