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Public Act 101-0630


 

Public Act 0630 101ST GENERAL ASSEMBLY

  
  
  

 


 
Public Act 101-0630
 
SB2099 EnrolledLRB101 10599 HLH 55705 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Coronavirus Urgent Remediation Emergency Borrowing Act or the
CURE Borrowing Act.
 
    Section 5. Findings and purpose. The General Assembly finds
that:
    The State of Illinois is in the midst of both a public
health emergency and a resultant fiscal crisis. The sudden
worldwide outbreak of the Coronavirus Disease 2019 (COVID-19)
and the spread of the disease in Illinois is causing dramatic
economic upheaval and severe financial stress for individuals,
businesses, health and other service providers, as well as the
State and local governments across Illinois. It has resulted in
declarations of disaster from both the Governor and the
President of the United States. The disaster has caused, and
will continue to cause for some time to come, reductions in
revenues for the State at the same time expenditures must be
incurred to respond to the emergency. The State requires
greater flexibility to borrow efficiently and respond
effectively to urgent financial needs as they arise.
    The federal government has responded to the COVID-19
pandemic with the passage of legislation that provides
emergency funding to state and local governments. One of the
new funding programs, found in Section 4003 of the federal
Coronavirus Aid, Relief, and Economic Stabilization Act (CARES
Act) provides a Municipal Liquidity Facility administered by
the Federal Reserve Bank with support from the United States
Department of the Treasury, through which funds are being made
available so that state and local governments may borrow funds
directly from the program. The State of Illinois has the
authority to participate in this program, any subsequent State
and municipal financing program created by federal legislation
to provide relief from the coronavirus pandemic (collectively
"federal coronavirus financing legislation"), and any similar
program that may be offered by the federal government or the
Federal Reserve Bank.
    The purpose of this Act is to revise the laws authorizing
the State to borrow money and incur state debt so that the
State will have needed flexibility in times of emergency, can
borrow with enhanced efficiency in urgent circumstances, and
can effectively utilize new borrowing programs and facilities
offered by the United States Department of the Treasury and the
Federal Reserve Bank, all while maintaining stringent
standards for accountability and transparency.
 
    Section 10. Borrowing authorized.
    (a) Borrowing under this Section is authorized under
subsection (b) of Section 9 of Article IX of the Illinois
Constitution. The Governor, with the approval of the
Comptroller and Treasurer, is authorized to borrow funds from
the Federal Reserve Bank or its agent in accordance with the
Municipal Liquidity Facility program established pursuant to
Section 4003 of the federal CARES Act and Section 13(3) of the
Federal Reserve Act, or in accordance with any other federal
coronavirus financing legislation or similar program
authorized by the United States Congress. The purposes for
which borrowing is authorized include:
        (1) to meet failures of revenue resulting from the
    COVID-19 outbreak and to support the emergency response
    thereto;
        (2) to provide funds for payment or reimbursement of
    new or increased costs of State government resulting from
    the COVID-19 outbreak and the emergency response thereto;
        (3) to provide funds to respond to any other disaster
    or emergency or failure of revenues or the costs of
    essential government services;
        (4) to provide funds for deposit into the Healthcare
    Provider Relief Fund for payment of costs payable from the
    Fund; and
        (5) to provide funds for payment or reimbursement of
    costs payable from the Health Insurance Reserve Fund.
    Proceeds of the borrowing may also be used to pay the costs
of borrowing and the debts created by the borrowing.
    (b) The Governor may borrow funds and contract debts from
time to time, in principal amounts not to exceed $5,000,000,000
outstanding at any time. Moneys thus borrowed shall be applied
to any of the purposes described in this Section in accordance
with properly enacted appropriations and transfers, or to pay
the debts and associated expenses thus incurred, and to no
other purpose. All proceeds from any borrowing under this Act,
except those expended on the costs of issuance, shall be
deposited into the Coronavirus Urgent Remediation Emergency
Borrowing Fund (CURE Borrowing Fund). All moneys so borrowed
shall be borrowed for no longer a time than the time limit set
forth in federal program rules and guidance, and in no event
longer than 10 years, and shall be repaid in equal principal
payments or as required by federal program rules and guidance,
if such requirements exist.
 
    Section 15. Borrowing process.
    (a) Whenever the borrowing of money under Section 10 is
contemplated, the Director of the Governor's Office of
Management and Budget, acting at the direction of the Governor,
shall prepare for such borrowing in one or more series, in
amounts, at prices and at interest rates, and in such manner as
directed by the Governor.
    (b) The Director of the Governor's Office of Management and
Budget, acting at the direction of the Governor, may negotiate
and borrow directly from the Federal Reserve Bank or its agent
in accordance with the Municipal Liquidity Facility program
established pursuant to Section 4003 of the federal CARES Act
and Section 13(3) of the Federal Reserve Act, or in accordance
with any other federal coronavirus financing legislation or
other program authorized by the United States Congress.
    (c) The rate of interest on any borrowing pursuant to this
Act shall not exceed the maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of the
contract. The requirements of the Illinois Procurement Code
requiring competitive requests for proposal shall not apply to
the selection of a lender in accordance with this Section.
 
    Section 20. Bonds, notes, certificates or other
facilities; appropriation.
    (a) There shall be prepared, under the direction of the
Governor, the form of bonds, notes, certificates or other
facilities that the Governor deems advisable for borrowing
pursuant to this Act. The bonds, notes, certificates or other
facilities, when issued, shall be signed by the Governor and a
record of their issuance shall be kept by the Comptroller. The
interest on and principal of the debt shall be paid from the
General Obligation Bond Retirement and Interest Fund.
    (b) There is appropriated on a continuing basis, out of any
money in the State treasury, a sum sufficient for the payment
of the interest on and principal of any debts contracted under
this Act, and the irrevocable and continuing authority for and
direction to the State Treasurer and the Comptroller to make
the necessary transfers, as directed by the Governor.
    (c) The Governor is authorized to order, pursuant to the
proceedings authorizing debts contracted under this Act, the
transfer of any moneys on deposit in the State treasury into
the General Obligation Bond Retirement and Interest Fund at
times and in amounts the Governor deems necessary to provide
for the payment of that interest and principal.
    (d) The Comptroller is authorized and directed to draw
warrants on the State Treasurer for the amount of all payments
of principal and interest on the bonds, notes, certificates or
other facilities issued under this Act.
 
    Section 50. The State Finance Act is amended by adding
Sections 5.934 and 6z-123 as follows:
 
    (30 ILCS 105/5.934 new)
    Sec. 5.934. The Coronavirus Urgent Remediation Emergency
Borrowing Fund (CURE Borrowing Fund).
 
    (30 ILCS 105/6z-123 new)
    Sec. 6z-123. Coronavirus Urgent Remediation Emergency
Borrowing Fund. The Coronavirus Urgent Remediation Emergency
Borrowing Fund (CURE Borrowing Fund) is created as a special
fund in the State treasury for the purpose of receiving
proceeds from borrowings transacted pursuant to the
Coronavirus Urgent Remediation Emergency Borrowing Act (CURE
Borrowing Act) and for transferring and expending such moneys
for the purposes authorized by that Act.
 
    Section 55. The Short Term Borrowing Act is amended by
changing Sections 1, 1.1, 2, and 3 as follows:
 
    (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 costs of borrowing and 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; 93-1046, eff. 10-15-04.)
 
    (30 ILCS 340/1.1)
    Sec. 1.1. Borrowing upon emergencies or failures in
revenue. Whenever emergencies or failures in revenues of the
State occur, in order to meet deficits caused by those
emergencies or 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 costs of borrowing and 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 7 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; 93-1046, eff. 10-15-04.)
 
    (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 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. 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.
    However, for borrowing authorized under Sections 1 and 1.1
of this Act during fiscal years 2020 and 2021 only,
certificates may be issued and sold on a negotiated basis
rather than by sealed bid from time to time, in one or more
series, in amounts, at prices and at interest rates, and in
such manner, all as directed by the Governor, Comptroller, and
Treasurer. The rate of interest must not exceed the maximum
rate authorized by the Bond Authorization Act as amended at the
time of the making of the contract. The requirements of the
Illinois Procurement Code shall not apply to the selection of
the purchaser of any certificates sold in accordance with the
provisions of this paragraph.
    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; 93-1046, eff. 10-15-04.)
 
    (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
certificates loan shall be paid by the Treasurer 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.
(Source: P.A. 101-275, eff. 8-9-19.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 5/29/2020