HB6240 97TH GENERAL ASSEMBLY

LRB097 23326 HLH 72162 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6240

Introduced , by Rep. Esther Golar

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.826 new
30 ILCS 330/2	from Ch. 127, par. 652
30 ILCS 330/7.6 new
30 ILCS 330/12	from Ch. 127, par. 662

Amends the General Obligation Bond Act. Provides that an additional $4,000,000,000 in general obligation bonds is authorized to be issued and used for the purpose of making payments to bona fide creditors of the State who: (1) have submitted a bill or invoice to the State that (A) was properly approved under rules adopted under Section 3-3 of the State Prompt Payment Act prior to September 1, 2012 and (B) was not paid within 30 days after the bill or invoice was submitted to the State Comptroller; or (2) are entitled to payment from State funds if the State is more than 60 days delinquent in the payment of those funds as of September 1, 2012. Provides that the proceeds of the additional bonds shall be deposited into the State Fiscal Responsibility Fund, a special fund created in the State Treasury. Provides that the Fund is not subject to sweeps, administrative charges, or chargebacks. Amends the State Finance Act to create the Fund. Provides that proceeds from the bond sale may not be used to make contributions to pension systems. Effective immediately.

FISCAL NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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

Section 5. The State Finance Act is amended by adding Section 5.826 as follows:

(30 ILCS 105/5.826 new)

Sec. 5.826. The State Fiscal Responsibility Fund.

Section 10. The General Obligation Bond Act is amended by changing Sections 2 and 12 and by adding Section 7.6 as follows:

(30 ILCS 330/2) (from Ch. 127, par. 652)

Sec. 2. Authorization for Bonds. The State of Illinois is authorized to issue, sell and provide for the retirement of General Obligation Bonds of the State of Illinois for the categories and specific purposes expressed in Sections 2 through 8 of this Act, in the total amount of $51,092,925,743 $47,092,925,743 $45,476,125,743.

The bonds authorized in this Section 2 and in Section 16 of this Act are herein called "Bonds".

Of the total amount of Bonds authorized in this Act, up to $2,200,000,000 in aggregate original principal amount may be issued and sold in accordance with the Baccalaureate Savings Act in the form of General Obligation College Savings Bonds.

Of the total amount of Bonds authorized in this Act, up to $300,000,000 in aggregate original principal amount may be issued and sold in accordance with the Retirement Savings Act in the form of General Obligation Retirement Savings Bonds.

Of the total amount of Bonds authorized in this Act, the additional $10,000,000,000 authorized by Public Act 93-2, the $3,466,000,000 authorized by Public Act 96-43, and the $4,096,348,300 authorized by Public Act 96-1497 shall be used solely as provided in Section 7.2.

The issuance and sale of Bonds pursuant to the General Obligation Bond Act is an economical and efficient method of financing the long-term capital needs of the State. This Act will permit the issuance of a multi-purpose General Obligation Bond with uniform terms and features. This will not only lower the cost of registration but also reduce the overall cost of issuing debt by improving the marketability of Illinois General Obligation Bonds.

(Source: P.A. 96-5, eff. 4-3-09; 96-36, eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10; 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1554, eff. 3-18-11; 97-333, eff. 8-12-11; 97-771, eff. 7-10-12; 97-813, eff. 7-13-12; revised 7-23-12.)

(30 ILCS 330/7.6 new)

Sec. 7.6. Payments to bona fide creditors.

(a) The amount of $4,000,000,000 is authorized to be used for the purpose of making payments to bona fide creditors of the State who: (1) have submitted a bill or invoice to the State that (A) was properly approved under rules adopted under Section 3-3 of the State Prompt Payment Act prior to September 1, 2012, and (B) was not paid within 30 days after the bill or invoice was submitted to the State Comptroller; or (2) are entitled to payment from State funds if the State is more than 30 days delinquent in the payment of those funds as of September 1, 2012. For the purposes of this Section, the term "bona fide creditor" includes, but is not limited to, healthcare providers, public and private universities, school districts, units of local government, and State vendors. The proceeds of the additional $4,000,000,000 of bonds authorized by this amendatory Act of the 97th General Assembly shall not be used to pay contributions to any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof.

(b) The proceeds of the additional $4,000,000,000 of bonds authorized by this amendatory Act of the 97th General Assembly, less the amounts directly paid out for bond sale expenses under Section 8, shall be deposited into the State Fiscal Responsibility Fund, a special fund created in the State Treasury. Moneys in the State Fiscal Responsibility Fund shall be used to make payments to bona fide creditors of the State, as defined in subsection (a). Those payments shall be made by the Comptroller according to the date on which the debt first became delinquent, with the oldest debts to be paid first.

(c) The State Fiscal Responsibility Fund is not subject to sweeps, administrative charges, or chargebacks, including, but not limited to, those authorized under Section 8h of the State Finance Act, or any other fiscal or budgetary maneuver that would in any way result in the transfer of any funds from the State Fiscal Responsibility Fund to any other fund of this State.

(30 ILCS 330/12) (from Ch. 127, par. 662)

Sec. 12. Allocation of Proceeds from Sale of Bonds.

(a) Proceeds from the sale of Bonds, authorized by Section 3 of this Act, shall be deposited in the separate fund known as the Capital Development Fund.

(b) Proceeds from the sale of Bonds, authorized by paragraph (a) of Section 4 of this Act, shall be deposited in the separate fund known as the Transportation Bond, Series A Fund.

(c) Proceeds from the sale of Bonds, authorized by paragraphs (b) and (c) of Section 4 of this Act, shall be deposited in the separate fund known as the Transportation Bond, Series B Fund.

(c-1) Proceeds from the sale of Bonds, authorized by paragraph (d) of Section 4 of this Act, shall be deposited into the Transportation Bond Series D Fund, which is hereby created.

(d) Proceeds from the sale of Bonds, authorized by Section 5 of this Act, shall be deposited in the separate fund known as the School Construction Fund.

(e) Proceeds from the sale of Bonds, authorized by Section 6 of this Act, shall be deposited in the separate fund known as the Anti-Pollution Fund.

(f) Proceeds from the sale of Bonds, authorized by Section 7 of this Act, shall be deposited in the separate fund known as the Coal Development Fund.

(f-2) Proceeds from the sale of Bonds, authorized by Section 7.2 of this Act, shall be deposited as set forth in Section 7.2.

(f-5) Proceeds from the sale of Bonds, authorized by Section 7.5 of this Act, shall be deposited as set forth in Section 7.5.

(f-6) Proceeds from the sale of Bonds authorized by Section 7.6 of this Act shall be deposited as set forth in Section 7.6.

(g) Proceeds from the sale of Bonds, authorized by Section 8 of this Act, shall be deposited in the Capital Development Fund.

(h) Subsequent to the issuance of any Bonds for the purposes described in Sections 2 through 8 of this Act, the Governor and the Director of the Governor's Office of Management and Budget may provide for the reallocation of unspent proceeds of such Bonds to any other purposes authorized under said Sections of this Act, subject to the limitations on aggregate principal amounts contained therein. Upon any such reallocation, such unspent proceeds shall be transferred to the appropriate funds as determined by reference to paragraphs (a) through (g) of this Section.

(Source: P.A. 96-36, eff. 7-13-09.)

Section 99. Effective date. This Act takes effect upon becoming law.