101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2441

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.891 new
30 ILCS 330/2  from Ch. 127, par. 652
30 ILCS 330/2.5
30 ILCS 330/7.8 new
30 ILCS 330/9  from Ch. 127, par. 659
30 ILCS 330/11  from Ch. 127, par. 661
30 ILCS 330/12  from Ch. 127, par. 662
30 ILCS 330/13  from Ch. 127, par. 663
40 ILCS 15/1.10 new

    Amends the General Obligation Bond Act. Authorizes the issuance of an additional $105,620,000,000 in State State Serial Long Term Pension Obligation Bonds. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act to create the State Pension Serial Long Term Obligation Bond Fund. Effective immediately.


LRB101 05139 RJF 50151 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2441LRB101 05139 RJF 50151 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 3. The State Finance Act is amended by adding
5Section 5.891 as follows:
 
6    (30 ILCS 105/5.891 new)
7    Sec. 5.891. The State Serial Long Term Pension Obligation
8Bond Fund.
 
9    Section 5. The General Obligation Bond Act is amended by
10changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding
11Section 7.8 as follows:
 
12    (30 ILCS 330/2)  (from Ch. 127, par. 652)
13    Sec. 2. Authorization for Bonds. The State of Illinois is
14authorized to issue, sell and provide for the retirement of
15General Obligation Bonds of the State of Illinois for the
16categories and specific purposes expressed in Sections 2
17through 8 of this Act, in the total amount of $163,337,925,743
18$57,717,925,743.
19    The bonds authorized in this Section 2 and in Section 16 of
20this Act are herein called "Bonds".
21    Of the total amount of Bonds authorized in this Act, up to

 

 

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1$2,200,000,000 in aggregate original principal amount may be
2issued and sold in accordance with the Baccalaureate Savings
3Act in the form of General Obligation College Savings Bonds.
4    Of the total amount of Bonds authorized in this Act, up to
5$300,000,000 in aggregate original principal amount may be
6issued and sold in accordance with the Retirement Savings Act
7in the form of General Obligation Retirement Savings Bonds.
8    Of the total amount of Bonds authorized in this Act, the
9additional $10,000,000,000 authorized by Public Act 93-2, the
10$3,466,000,000 authorized by Public Act 96-43, and the
11$4,096,348,300 authorized by Public Act 96-1497 shall be used
12solely as provided in Section 7.2.
13    Of the total amount of Bonds authorized in this Act, the
14additional $6,000,000,000 authorized by this amendatory Act of
15the 100th General Assembly shall be used solely as provided in
16Section 7.6 and shall be issued by December 31, 2017.
17    Of the total amount of Bonds authorized in this Act,
18$1,000,000,000 of the additional amount authorized by this
19amendatory Act of the 100th General Assembly shall be used
20solely as provided in Section 7.7.
21    Of the total amount of Bonds authorized in this Act, the
22additional $105,620,000,000 authorized by Section 7.8 shall be
23used solely as provided in Section 7.8.
24    The issuance and sale of Bonds pursuant to the General
25Obligation Bond Act is an economical and efficient method of
26financing the long-term capital needs of the State. This Act

 

 

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1will permit the issuance of a multi-purpose General Obligation
2Bond with uniform terms and features. This will not only lower
3the cost of registration but also reduce the overall cost of
4issuing debt by improving the marketability of Illinois General
5Obligation Bonds.
6(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
7    (30 ILCS 330/2.5)
8    Sec. 2.5. Limitation on issuance of Bonds.
9    (a) Except as provided in subsection (b), no Bonds may be
10issued if, after the issuance, in the next State fiscal year
11after the issuance of the Bonds, the amount of debt service
12(including principal, whether payable at maturity or pursuant
13to mandatory sinking fund installments, and interest) on all
14then-outstanding Bonds, other than (i) Bonds authorized by
15Public Act 100-23, (ii) Bonds issued by Public Act 96-43, (iii)
16Bonds authorized by Public Act 96-1497, and (iv) Bonds
17authorized by this amendatory Act of the 100th General
18Assembly, and (v) Bonds authorized by this amendatory Act of
19the 101st General Assembly, would exceed 7% of the aggregate
20appropriations from the general funds (which consist of the
21General Revenue Fund, the Common School Fund, the General
22Revenue Common School Special Account Fund, and the Education
23Assistance Fund) and the Road Fund for the fiscal year
24immediately prior to the fiscal year of the issuance.
25    (b) If the Comptroller and Treasurer each consent in

 

 

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1writing, Bonds may be issued even if the issuance does not
2comply with subsection (a). In addition, $2,000,000,000 in
3Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
4and $2,000,000,000 in Refunding Bonds under Section 16, may be
5issued during State fiscal year 2017 without complying with
6subsection (a). In addition, $2,000,000,000 in Bonds for the
7purposes set forth in Sections 3, 4, 5, 6, and 7, and
8$2,000,000,000 in Refunding Bonds under Section 16, may be
9issued during State fiscal year 2018 without complying with
10subsection (a).
11(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
1225-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
137-6-17; 100-587, eff. 6-4-18; 100-863, eff. 8-14-18.)
 
14    (30 ILCS 330/7.8 new)
15    Sec. 7.8. State Serial Long Term Pension Obligation Bonds.
16    (a) As used in this Act, "State Serial Long Term Pension
17Obligation Bonds" means Bonds authorized by this amendatory Act
18of the 101st General Assembly and used for the purposes set
19forth in this Section.
20    (b) State Serial Long Term Pension Obligation Bonds in the
21amount of $105,620,000,000 are hereby authorized to be used for
22the purposes set forth in this Section.
23    (c) The proceeds of State Serial Long Term Pension
24Obligation Bonds authorized in subsection (b) of this Section
25shall be deposited directly into the State Serial Long Term

 

 

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1Pension Obligation Bond Fund, and the Comptroller and the
2Treasurer shall, as soon as practical, make payments as
3contemplated by subsection (d) of this Section.
4    (d) There is created the State Serial Long Term Pension
5Obligation Bond Fund as a special fund in the State Treasury.
6Funds deposited in the State Serial Long Term Pension
7Obligation Bond Fund may be used only to make payments to the
8State pension systems on a pro-rated basis in an amount
9sufficient to bring the actuarially accrued unfunded liability
10of each individual Fund to a 90% level. Notwithstanding any
11other provision of law, each retirement system under Article
1214, 15, or 16 of the Illinois Pension Code shall establish a
13designated investment fund for 36% of the bond proceeds it
14receives from any bond issuance authorized by this amendatory
15Act of the 101st General Assembly. The designated investment
16fund shall be used solely for the purposes of taking advantage
17of interest arbitrage from the bond proceeds and for making
18debt service contributions related to the bonds issued under
19this amendatory Act of the 101st General Assembly.
 
20    (30 ILCS 330/9)  (from Ch. 127, par. 659)
21    Sec. 9. Conditions for issuance and sale of Bonds;
22requirements for Bonds.
23    (a) Except as otherwise provided in this subsection,
24subsection (h), and subsection (i), and subsection (j), Bonds
25shall be issued and sold from time to time, in one or more

 

 

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1series, in such amounts and at such prices as may be directed
2by the Governor, upon recommendation by the Director of the
3Governor's Office of Management and Budget. Bonds shall be in
4such form (either coupon, registered or book entry), in such
5denominations, payable within 25 years from their date, subject
6to such terms of redemption with or without premium, bear
7interest payable at such times and at such fixed or variable
8rate or rates, and be dated as shall be fixed and determined by
9the Director of the Governor's Office of Management and Budget
10in the order authorizing the issuance and sale of any series of
11Bonds, which order shall be approved by the Governor and is
12herein called a "Bond Sale Order"; provided however, that
13interest payable at fixed or variable rates shall not exceed
14that permitted in the Bond Authorization Act, as now or
15hereafter amended. Bonds shall be payable at such place or
16places, within or without the State of Illinois, and may be
17made registrable as to either principal or as to both principal
18and interest, as shall be specified in the Bond Sale Order.
19Bonds may be callable or subject to purchase and retirement or
20tender and remarketing as fixed and determined in the Bond Sale
21Order. Bonds, other than Bonds issued under Section 3 of this
22Act for the costs associated with the purchase and
23implementation of information technology, (i) except for
24refunding Bonds satisfying the requirements of Section 16 of
25this Act and sold during fiscal year 2009, 2010, 2011, 2017,
262018, or 2019 must be issued with principal or mandatory

 

 

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1redemption amounts in equal amounts, with the first maturity
2issued occurring within the fiscal year in which the Bonds are
3issued or within the next succeeding fiscal year and (ii) must
4mature or be subject to mandatory redemption each fiscal year
5thereafter up to 25 years, except for refunding Bonds
6satisfying the requirements of Section 16 of this Act and sold
7during fiscal year 2009, 2010, or 2011 which must mature or be
8subject to mandatory redemption each fiscal year thereafter up
9to 16 years. Bonds issued under Section 3 of this Act for the
10costs associated with the purchase and implementation of
11information technology must be issued with principal or
12mandatory redemption amounts in equal amounts, with the first
13maturity issued occurring with the fiscal year in which the
14respective bonds are issued or with the next succeeding fiscal
15year, with the respective bonds issued maturing or subject to
16mandatory redemption each fiscal year thereafter up to 10
17years. Notwithstanding any provision of this Act to the
18contrary, the Bonds authorized by Public Act 96-43 shall be
19payable within 5 years from their date and must be issued with
20principal or mandatory redemption amounts in equal amounts,
21with payment of principal or mandatory redemption beginning in
22the first fiscal year following the fiscal year in which the
23Bonds are issued.
24    Notwithstanding any provision of this Act to the contrary,
25the Bonds authorized by Public Act 96-1497 shall be payable
26within 8 years from their date and shall be issued with payment

 

 

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1of maturing principal or scheduled mandatory redemptions in
2accordance with the following schedule, except the following
3amounts shall be prorated if less than the total additional
4amount of Bonds authorized by Public Act 96-1497 are issued:
5    Fiscal Year After Issuance    Amount
6        1-2                        $0 
7        3                          $110,712,120
8        4                          $332,136,360
9        5                          $664,272,720
10        6-8                        $996,409,080
11    Notwithstanding any provision of this Act to the contrary,
12Income Tax Proceed Bonds issued under Section 7.6 shall be
13payable 12 years from the date of sale and shall be issued with
14payment of principal or mandatory redemption.
15    In the case of any series of Bonds bearing interest at a
16variable interest rate ("Variable Rate Bonds"), in lieu of
17determining the rate or rates at which such series of Variable
18Rate Bonds shall bear interest and the price or prices at which
19such Variable Rate Bonds shall be initially sold or remarketed
20(in the event of purchase and subsequent resale), the Bond Sale
21Order may provide that such interest rates and prices may vary
22from time to time depending on criteria established in such
23Bond Sale Order, which criteria may include, without
24limitation, references to indices or variations in interest
25rates as may, in the judgment of a remarketing agent, be
26necessary to cause Variable Rate Bonds of such series to be

 

 

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1remarketable from time to time at a price equal to their
2principal amount, and may provide for appointment of a bank,
3trust company, investment bank, or other financial institution
4to serve as remarketing agent in that connection. The Bond Sale
5Order may provide that alternative interest rates or provisions
6for establishing alternative interest rates, different
7security or claim priorities, or different call or amortization
8provisions will apply during such times as Variable Rate Bonds
9of any series are held by a person providing credit or
10liquidity enhancement arrangements for such Bonds as
11authorized in subsection (b) of this Section. The Bond Sale
12Order may also provide for such variable interest rates to be
13established pursuant to a process generally known as an auction
14rate process and may provide for appointment of one or more
15financial institutions to serve as auction agents and
16broker-dealers in connection with the establishment of such
17interest rates and the sale and remarketing of such Bonds.
18    (b) In connection with the issuance of any series of Bonds,
19the State may enter into arrangements to provide additional
20security and liquidity for such Bonds, including, without
21limitation, bond or interest rate insurance or letters of
22credit, lines of credit, bond purchase contracts, or other
23arrangements whereby funds are made available to retire or
24purchase Bonds, thereby assuring the ability of owners of the
25Bonds to sell or redeem their Bonds. The State may enter into
26contracts and may agree to pay fees to persons providing such

 

 

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1arrangements, but only under circumstances where the Director
2of the Governor's Office of Management and Budget certifies
3that he or she reasonably expects the total interest paid or to
4be paid on the Bonds, together with the fees for the
5arrangements (being treated as if interest), would not, taken
6together, cause the Bonds to bear interest, calculated to their
7stated maturity, at a rate in excess of the rate that the Bonds
8would bear in the absence of such arrangements.
9    The State may, with respect to Bonds issued or anticipated
10to be issued, participate in and enter into arrangements with
11respect to interest rate protection or exchange agreements,
12guarantees, or financial futures contracts for the purpose of
13limiting, reducing, or managing interest rate exposure. The
14authority granted under this paragraph, however, shall not
15increase the principal amount of Bonds authorized to be issued
16by law. The arrangements may be executed and delivered by the
17Director of the Governor's Office of Management and Budget on
18behalf of the State. Net payments for such arrangements shall
19constitute interest on the Bonds and shall be paid from the
20General Obligation Bond Retirement and Interest Fund. The
21Director of the Governor's Office of Management and Budget
22shall at least annually certify to the Governor and the State
23Comptroller his or her estimate of the amounts of such net
24payments to be included in the calculation of interest required
25to be paid by the State.
26    (c) Prior to the issuance of any Variable Rate Bonds

 

 

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1pursuant to subsection (a), the Director of the Governor's
2Office of Management and Budget shall adopt an interest rate
3risk management policy providing that the amount of the State's
4variable rate exposure with respect to Bonds shall not exceed
520%. This policy shall remain in effect while any Bonds are
6outstanding and the issuance of Bonds shall be subject to the
7terms of such policy. The terms of this policy may be amended
8from time to time by the Director of the Governor's Office of
9Management and Budget but in no event shall any amendment cause
10the permitted level of the State's variable rate exposure with
11respect to Bonds to exceed 20%.
12    (d) "Build America Bonds" in this Section means Bonds
13authorized by Section 54AA of the Internal Revenue Code of
141986, as amended ("Internal Revenue Code"), and bonds issued
15from time to time to refund or continue to refund "Build
16America Bonds".
17    (e) Notwithstanding any other provision of this Section,
18Qualified School Construction Bonds shall be issued and sold
19from time to time, in one or more series, in such amounts and
20at such prices as may be directed by the Governor, upon
21recommendation by the Director of the Governor's Office of
22Management and Budget. Qualified School Construction Bonds
23shall be in such form (either coupon, registered or book
24entry), in such denominations, payable within 25 years from
25their date, subject to such terms of redemption with or without
26premium, and if the Qualified School Construction Bonds are

 

 

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1issued with a supplemental coupon, bear interest payable at
2such times and at such fixed or variable rate or rates, and be
3dated as shall be fixed and determined by the Director of the
4Governor's Office of Management and Budget in the order
5authorizing the issuance and sale of any series of Qualified
6School Construction Bonds, which order shall be approved by the
7Governor and is herein called a "Bond Sale Order"; except that
8interest payable at fixed or variable rates, if any, shall not
9exceed that permitted in the Bond Authorization Act, as now or
10hereafter amended. Qualified School Construction Bonds shall
11be payable at such place or places, within or without the State
12of Illinois, and may be made registrable as to either principal
13or as to both principal and interest, as shall be specified in
14the Bond Sale Order. Qualified School Construction Bonds may be
15callable or subject to purchase and retirement or tender and
16remarketing as fixed and determined in the Bond Sale Order.
17Qualified School Construction Bonds must be issued with
18principal or mandatory redemption amounts or sinking fund
19payments into the General Obligation Bond Retirement and
20Interest Fund (or subaccount therefor) in equal amounts, with
21the first maturity issued, mandatory redemption payment or
22sinking fund payment occurring within the fiscal year in which
23the Qualified School Construction Bonds are issued or within
24the next succeeding fiscal year, with Qualified School
25Construction Bonds issued maturing or subject to mandatory
26redemption or with sinking fund payments thereof deposited each

 

 

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1fiscal year thereafter up to 25 years. Sinking fund payments
2set forth in this subsection shall be permitted only to the
3extent authorized in Section 54F of the Internal Revenue Code
4or as otherwise determined by the Director of the Governor's
5Office of Management and Budget. "Qualified School
6Construction Bonds" in this subsection means Bonds authorized
7by Section 54F of the Internal Revenue Code and for bonds
8issued from time to time to refund or continue to refund such
9"Qualified School Construction Bonds".
10    (f) Beginning with the next issuance by the Governor's
11Office of Management and Budget to the Procurement Policy Board
12of a request for quotation for the purpose of formulating a new
13pool of qualified underwriting banks list, all entities
14responding to such a request for quotation for inclusion on
15that list shall provide a written report to the Governor's
16Office of Management and Budget and the Illinois Comptroller.
17The written report submitted to the Comptroller shall (i) be
18published on the Comptroller's Internet website and (ii) be
19used by the Governor's Office of Management and Budget for the
20purposes of scoring such a request for quotation. The written
21report, at a minimum, shall:
22        (1) disclose whether, within the past 3 months,
23    pursuant to its credit default swap market-making
24    activities, the firm has entered into any State of Illinois
25    credit default swaps ("CDS");
26        (2) include, in the event of State of Illinois CDS

 

 

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1    activity, disclosure of the firm's cumulative notional
2    volume of State of Illinois CDS trades and the firm's
3    outstanding gross and net notional amount of State of
4    Illinois CDS, as of the end of the current 3-month period;
5        (3) indicate, pursuant to the firm's proprietary
6    trading activities, disclosure of whether the firm, within
7    the past 3 months, has entered into any proprietary trades
8    for its own account in State of Illinois CDS;
9        (4) include, in the event of State of Illinois
10    proprietary trades, disclosure of the firm's outstanding
11    gross and net notional amount of proprietary State of
12    Illinois CDS and whether the net position is short or long
13    credit protection, as of the end of the current 3-month
14    period;
15        (5) list all time periods during the past 3 months
16    during which the firm held net long or net short State of
17    Illinois CDS proprietary credit protection positions, the
18    amount of such positions, and whether those positions were
19    net long or net short credit protection positions; and
20        (6) indicate whether, within the previous 3 months, the
21    firm released any publicly available research or marketing
22    reports that reference State of Illinois CDS and include
23    those research or marketing reports as attachments.
24    (g) All entities included on a Governor's Office of
25Management and Budget's pool of qualified underwriting banks
26list shall, as soon as possible after March 18, 2011 (the

 

 

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1effective date of Public Act 96-1554), but not later than
2January 21, 2011, and on a quarterly fiscal basis thereafter,
3provide a written report to the Governor's Office of Management
4and Budget and the Illinois Comptroller. The written reports
5submitted to the Comptroller shall be published on the
6Comptroller's Internet website. The written reports, at a
7minimum, shall:
8        (1) disclose whether, within the past 3 months,
9    pursuant to its credit default swap market-making
10    activities, the firm has entered into any State of Illinois
11    credit default swaps ("CDS");
12        (2) include, in the event of State of Illinois CDS
13    activity, disclosure of the firm's cumulative notional
14    volume of State of Illinois CDS trades and the firm's
15    outstanding gross and net notional amount of State of
16    Illinois CDS, as of the end of the current 3-month period;
17        (3) indicate, pursuant to the firm's proprietary
18    trading activities, disclosure of whether the firm, within
19    the past 3 months, has entered into any proprietary trades
20    for its own account in State of Illinois CDS;
21        (4) include, in the event of State of Illinois
22    proprietary trades, disclosure of the firm's outstanding
23    gross and net notional amount of proprietary State of
24    Illinois CDS and whether the net position is short or long
25    credit protection, as of the end of the current 3-month
26    period;

 

 

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1        (5) list all time periods during the past 3 months
2    during which the firm held net long or net short State of
3    Illinois CDS proprietary credit protection positions, the
4    amount of such positions, and whether those positions were
5    net long or net short credit protection positions; and
6        (6) indicate whether, within the previous 3 months, the
7    firm released any publicly available research or marketing
8    reports that reference State of Illinois CDS and include
9    those research or marketing reports as attachments.
10    (h) Notwithstanding any other provision of this Section,
11for purposes of maximizing market efficiencies and cost
12savings, Income Tax Proceed Bonds may be issued and sold from
13time to time, in one or more series, in such amounts and at
14such prices as may be directed by the Governor, upon
15recommendation by the Director of the Governor's Office of
16Management and Budget. Income Tax Proceed Bonds shall be in
17such form, either coupon, registered, or book entry, in such
18denominations, shall bear interest payable at such times and at
19such fixed or variable rate or rates, and be dated as shall be
20fixed and determined by the Director of the Governor's Office
21of Management and Budget in the order authorizing the issuance
22and sale of any series of Income Tax Proceed Bonds, which order
23shall be approved by the Governor and is herein called a "Bond
24Sale Order"; provided, however, that interest payable at fixed
25or variable rates shall not exceed that permitted in the Bond
26Authorization Act. Income Tax Proceed Bonds shall be payable at

 

 

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1such place or places, within or without the State of Illinois,
2and may be made registrable as to either principal or as to
3both principal and interest, as shall be specified in the Bond
4Sale Order. Income Tax Proceed Bonds may be callable or subject
5to purchase and retirement or tender and remarketing as fixed
6and determined in the Bond Sale Order.
7    (i) Notwithstanding any other provision of this Section,
8for purposes of maximizing market efficiencies and cost
9savings, State Pension Obligation Acceleration Bonds may be
10issued and sold from time to time, in one or more series, in
11such amounts and at such prices as may be directed by the
12Governor, upon recommendation by the Director of the Governor's
13Office of Management and Budget. State Pension Obligation
14Acceleration Bonds shall be in such form, either coupon,
15registered, or book entry, in such denominations, shall bear
16interest payable at such times and at such fixed or variable
17rate or rates, and be dated as shall be fixed and determined by
18the Director of the Governor's Office of Management and Budget
19in the order authorizing the issuance and sale of any series of
20State Pension Obligation Acceleration Bonds, which order shall
21be approved by the Governor and is herein called a "Bond Sale
22Order"; provided, however, that interest payable at fixed or
23variable rates shall not exceed that permitted in the Bond
24Authorization Act. State Pension Obligation Acceleration Bonds
25shall be payable at such place or places, within or without the
26State of Illinois, and may be made registrable as to either

 

 

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1principal or as to both principal and interest, as shall be
2specified in the Bond Sale Order. State Pension Obligation
3Acceleration Bonds may be callable or subject to purchase and
4retirement or tender and remarketing as fixed and determined in
5the Bond Sale Order.
6    (j) Notwithstanding any other provision of this Section,
7for purposes of maximizing market efficiencies and cost
8savings, State Serial Long Term Pension Obligation Bonds may be
9issued and sold from time to time, in one or more series, in
10such amounts and at such prices as may be directed by the
11Governor, upon recommendation by the Director of the Governor's
12Office of Management and Budget. State Serial Long Term Pension
13Obligation Bonds shall be in such form, either coupon,
14registered, or book entry, in such denominations, shall bear
15interest payable at such times and at such fixed or variable
16rate or rates, and be dated as shall be fixed and determined by
17the Director of the Governor's Office of Management and Budget
18in the order authorizing the issuance and sale of any series of
19State Serial Long Term Pension Obligation Bonds, which order
20shall be approved by the Governor and is herein called a "Bond
21Sale Order"; provided, however, that interest payable at fixed
22or variable rates shall not exceed that permitted in the Bond
23Authorization Act. State Serial Long Term Pension Obligation
24Bonds shall be payable at such place or places, within or
25without the State of Illinois, and may be made registrable as
26to either principal or as to both principal and interest, as

 

 

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1shall be specified in the Bond Sale Order. State Serial Long
2Term Pension Obligation Bonds may be callable or subject to
3purchase and retirement or tender and remarketing as fixed and
4determined in the Bond Sale Order. The term of such State
5Serial Long Term Pension Obligation Bonds shall not exceed 30
6years.
7(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
825-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
97-6-17; 100-587, Article 60, Section 60-5, eff. 6-4-18;
10100-587, Article 110, Section 110-15, eff. 6-4-18; 100-863,
11eff. 8-14-18; revised 10-17-18.)
 
12    (30 ILCS 330/11)  (from Ch. 127, par. 661)
13    Sec. 11. Sale of Bonds. Except as otherwise provided in
14this Section, Bonds shall be sold from time to time pursuant to
15notice of sale and public bid or by negotiated sale in such
16amounts and at such times as is directed by the Governor, upon
17recommendation by the Director of the Governor's Office of
18Management and Budget. At least 25%, based on total principal
19amount, of all Bonds issued each fiscal year shall be sold
20pursuant to notice of sale and public bid. At all times during
21each fiscal year, no more than 75%, based on total principal
22amount, of the Bonds issued each fiscal year, shall have been
23sold by negotiated sale. Failure to satisfy the requirements in
24the preceding 2 sentences shall not affect the validity of any
25previously issued Bonds; provided that all Bonds authorized by

 

 

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1Public Act 96-43 and Public Act 96-1497 shall not be included
2in determining compliance for any fiscal year with the
3requirements of the preceding 2 sentences; and further provided
4that refunding Bonds satisfying the requirements of Section 16
5of this Act and sold during fiscal year 2009, 2010, 2011, 2017,
62018, or 2019 shall not be subject to the requirements in the
7preceding 2 sentences.
8    If any Bonds, including refunding Bonds, are to be sold by
9negotiated sale, the Director of the Governor's Office of
10Management and Budget shall comply with the competitive request
11for proposal process set forth in the Illinois Procurement Code
12and all other applicable requirements of that Code.
13    If Bonds are to be sold pursuant to notice of sale and
14public bid, the Director of the Governor's Office of Management
15and Budget may, from time to time, as Bonds are to be sold,
16advertise the sale of the Bonds in at least 2 daily newspapers,
17one of which is published in the City of Springfield and one in
18the City of Chicago. The sale of the Bonds shall also be
19advertised in the volume of the Illinois Procurement Bulletin
20that is published by the Department of Central Management
21Services, and shall be published once at least 10 days prior to
22the date fixed for the opening of the bids. The Director of the
23Governor's Office of Management and Budget may reschedule the
24date of sale upon the giving of such additional notice as the
25Director deems adequate to inform prospective bidders of such
26change; provided, however, that all other conditions of the

 

 

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1sale shall continue as originally advertised.
2    Executed Bonds shall, upon payment therefor, be delivered
3to the purchaser, and the proceeds of Bonds shall be paid into
4the State Treasury as directed by Section 12 of this Act.
5    All Income Tax Proceed Bonds shall comply with this
6Section. Notwithstanding anything to the contrary, however,
7for purposes of complying with this Section, Income Tax Proceed
8Bonds, regardless of the number of series or issuances sold
9thereunder, shall be considered a single issue or series.
10Furthermore, for purposes of complying with the competitive
11bidding requirements of this Section, the words "at all times"
12shall not apply to any such sale of the Income Tax Proceed
13Bonds. The Director of the Governor's Office of Management and
14Budget shall determine the time and manner of any competitive
15sale of the Income Tax Proceed Bonds; however, that sale shall
16under no circumstances take place later than 60 days after the
17State closes the sale of 75% of the Income Tax Proceed Bonds by
18negotiated sale.
19    All State Pension Obligation Acceleration Bonds shall
20comply with this Section. Notwithstanding anything to the
21contrary, however, for purposes of complying with this Section,
22State Pension Obligation Acceleration Bonds, regardless of the
23number of series or issuances sold thereunder, shall be
24considered a single issue or series. Furthermore, for purposes
25of complying with the competitive bidding requirements of this
26Section, the words "at all times" shall not apply to any such

 

 

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1sale of the State Pension Obligation Acceleration Bonds. The
2Director of the Governor's Office of Management and Budget
3shall determine the time and manner of any competitive sale of
4the State Pension Obligation Acceleration Bonds; however, that
5sale shall under no circumstances take place later than 60 days
6after the State closes the sale of 75% of the State Pension
7Obligation Acceleration Bonds by negotiated sale.
8    All State Serial Long Term Pension Obligation Bonds shall
9comply with this Section. Notwithstanding anything to the
10contrary, however, for purposes of complying with this Section,
11State Serial Long Term Pension Obligation Bonds, regardless of
12the number of series or issuances sold thereunder, shall be
13considered a single issue or series. Furthermore, for purposes
14of complying with the competitive bidding requirements of this
15Section, the words "at all times" shall not apply to any such
16sale of the State Serial Long Term Pension Obligation Bonds.
17The Director of the Governor's Office of Management and Budget
18shall determine the time and manner of any competitive sale of
19the State Serial Long Term Pension Obligation Bonds; however,
20that sale shall under no circumstances take place later than 60
21days after the State closes the sale of 75% of the State Serial
22Long Term Pension Obligation Bonds by negotiated sale.
23(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
2425-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
257-6-17; 100-587, Article 60, Section 60-5, eff. 6-4-18;
26100-587, Article 110, Section 110-15, eff. 6-4-18; 100-863,

 

 

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1eff. 8-4-18; revised 10-10-18.)
 
2    (30 ILCS 330/12)  (from Ch. 127, par. 662)
3    Sec. 12. Allocation of proceeds from sale of Bonds.
4    (a) Proceeds from the sale of Bonds, authorized by Section
53 of this Act, shall be deposited in the separate fund known as
6the Capital Development Fund.
7    (b) Proceeds from the sale of Bonds, authorized by
8paragraph (a) of Section 4 of this Act, shall be deposited in
9the separate fund known as the Transportation Bond, Series A
10Fund.
11    (c) Proceeds from the sale of Bonds, authorized by
12paragraphs (b) and (c) of Section 4 of this Act, shall be
13deposited in the separate fund known as the Transportation
14Bond, Series B Fund.
15    (c-1) Proceeds from the sale of Bonds, authorized by
16paragraph (d) of Section 4 of this Act, shall be deposited into
17the Transportation Bond Series D Fund, which is hereby created.
18    (d) Proceeds from the sale of Bonds, authorized by Section
195 of this Act, shall be deposited in the separate fund known as
20the School Construction Fund.
21    (e) Proceeds from the sale of Bonds, authorized by Section
226 of this Act, shall be deposited in the separate fund known as
23the Anti-Pollution Fund.
24    (f) Proceeds from the sale of Bonds, authorized by Section
257 of this Act, shall be deposited in the separate fund known as

 

 

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1the Coal Development Fund.
2    (f-2) Proceeds from the sale of Bonds, authorized by
3Section 7.2 of this Act, shall be deposited as set forth in
4Section 7.2.
5    (f-5) Proceeds from the sale of Bonds, authorized by
6Section 7.5 of this Act, shall be deposited as set forth in
7Section 7.5.
8    (f-7) Proceeds from the sale of Bonds, authorized by
9Section 7.6 of this Act, shall be deposited as set forth in
10Section 7.6.
11    (f-8) Proceeds from the sale of Bonds, authorized by
12Section 7.7 of this Act, shall be deposited as set forth in
13Section 7.7.
14    (f-9) Proceeds from the sale of Bonds, authorized by
15Section 7.8 of this Act, shall be deposited as set forth in
16Section 7.8.
17    (g) Proceeds from the sale of Bonds, authorized by Section
188 of this Act, shall be deposited in the Capital Development
19Fund.
20    (h) Subsequent to the issuance of any Bonds for the
21purposes described in Sections 2 through 8 of this Act, the
22Governor and the Director of the Governor's Office of
23Management and Budget may provide for the reallocation of
24unspent proceeds of such Bonds to any other purposes authorized
25under said Sections of this Act, subject to the limitations on
26aggregate principal amounts contained therein. Upon any such

 

 

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1reallocation, such unspent proceeds shall be transferred to the
2appropriate funds as determined by reference to paragraphs (a)
3through (g) of this Section.
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
5    (30 ILCS 330/13)  (from Ch. 127, par. 663)
6    Sec. 13. Appropriation of proceeds from sale of Bonds.
7    (a) At all times, the proceeds from the sale of Bonds
8issued pursuant to this Act are subject to appropriation by the
9General Assembly and, except as provided in Sections 7.2, 7.6,
10and 7.7, and 7.8, may be obligated or expended only with the
11written approval of the Governor, in such amounts, at such
12times, and for such purposes as the respective State agencies,
13as defined in Section 1-7 of the Illinois State Auditing Act,
14as amended, deem necessary or desirable for the specific
15purposes contemplated in Sections 2 through 8 of this Act.
16Notwithstanding any other provision of this Act, proceeds from
17the sale of Bonds issued pursuant to this Act appropriated by
18the General Assembly to the Architect of the Capitol may be
19obligated or expended by the Architect of the Capitol without
20the written approval of the Governor.
21    (b) Proceeds from the sale of Bonds for the purpose of
22development of coal and alternative forms of energy shall be
23expended in such amounts and at such times as the Department of
24Commerce and Economic Opportunity, with the advice and
25recommendation of the Illinois Coal Development Board for coal

 

 

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1development projects, may deem necessary and desirable for the
2specific purpose contemplated by Section 7 of this Act. In
3considering the approval of projects to be funded, the
4Department of Commerce and Economic Opportunity shall give
5special consideration to projects designed to remove sulfur and
6other pollutants in the preparation and utilization of coal,
7and in the use and operation of electric utility generating
8plants and industrial facilities which utilize Illinois coal as
9their primary source of fuel.
10    (c) Except as directed in subsection (c-1) or (c-2), any
11monies received by any officer or employee of the state
12representing a reimbursement of expenditures previously paid
13from general obligation bond proceeds shall be deposited into
14the General Obligation Bond Retirement and Interest Fund
15authorized in Section 14 of this Act.
16    (c-1) Any money received by the Department of
17Transportation as reimbursement for expenditures for high
18speed rail purposes pursuant to appropriations from the
19Transportation Bond, Series B Fund for (i) CREATE (Chicago
20Region Environmental and Transportation Efficiency), (ii) High
21Speed Rail, or (iii) AMTRAK projects authorized by the federal
22government under the provisions of the American Recovery and
23Reinvestment Act of 2009 or the Safe Accountable Flexible
24Efficient Transportation Equity Act-A Legacy for Users
25(SAFETEA-LU), or any successor federal transportation
26authorization Act, shall be deposited into the Federal High

 

 

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1Speed Rail Trust Fund.
2    (c-2) Any money received by the Department of
3Transportation as reimbursement for expenditures for transit
4capital purposes pursuant to appropriations from the
5Transportation Bond, Series B Fund for projects authorized by
6the federal government under the provisions of the American
7Recovery and Reinvestment Act of 2009 or the Safe Accountable
8Flexible Efficient Transportation Equity Act-A Legacy for
9Users (SAFETEA-LU), or any successor federal transportation
10authorization Act, shall be deposited into the Federal Mass
11Transit Trust Fund.
12(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
13    Section 10. The State Pension Funds Continuing
14Appropriation Act is amended by adding Section 1.10 as follows:
 
15    (40 ILCS 15/1.10 new)
16    Sec. 1.10. Appropriations for State Serial Long Term
17Pension Obligation Bonds. If for any reason the aggregate
18appropriations made available are insufficient to meet the
19levels required for the payment of principal and interest due
20on State Serial Long Term Pension Obligation Bonds under
21Section 7.8 of the General Obligation Bond Act, this Section
22shall constitute a continuing appropriation of all amounts
23necessary for those purposes.
 
24    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.