House Sponsors: SCHOENBERG-GASH-HOEFT-MORROW-BROSNAHAN, GARRETT, COULSON, SILVA AND SCHMITZ. Senate Sponsors: CRONIN-LINK-PETERSON 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 END OF INQUIRY Full Text Bill Status