91st General Assembly
Summary of HB3423
   [ Home ]   [ Back ]   [ Legislation ]
Please enter a bill number.

 Full Text  Bill Status
House Sponsors:

Senate Sponsors:

Short description: 
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

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   0


 Full Text  Bill Status