Bill Status of HB 2718   100th General Assembly

Short Description:  STATE BONDS-DERIVATIVE DEALS

House Sponsors
Rep. Emanuel Chris Welch

Last Action  View All Actions

DateChamber Action
  1/8/2019HouseSession Sine Die

Statutes Amended In Order of Appearance
20 ILCS 3805/16from Ch. 67 1/2, par. 316
30 ILCS 330/9from Ch. 127, par. 659
30 ILCS 330/14from Ch. 127, par. 664
30 ILCS 330/15.1 new
110 ILCS 73/17 new
110 ILCS 73/22 new
110 ILCS 405/5.2 new
605 ILCS 10/17from Ch. 121, par. 100-17

Synopsis As Introduced
Amends the Illinois Housing Development Act. Requires the Director of the Illinois Housing Development Authority to oversee an annual evaluation of derivative deals, including interest rate swaps, initiated to manage interest rate exposure, in order to ascertain the financial costs of these agreements. Provides that if these agreements have resulted in losses to the Authority, the Director shall make all necessary efforts to recover those moneys. Requires the Authority to conduct specified duties to achieve these goals. Makes similar changes concerning the annual evaluation of derivative deals under the General Obligation Bond Act, the State University Certificates of Participation Act, the University of Illinois Revenue Bond Financing Act for Auxiliary Facilities, and the Toll Highway Act. Further amends the General Obligation Bond Act by removing a provision permitting a Bond Sale Order to provide for variable interest rates to be established pursuant to a process generally known as an auction rate process and to provide for appointment of one or more financial institutions to serve as auction agents and broker-dealers in connection with the establishment of such interest rates and the sale and remarketing of such Bonds. Provides that after July 1, 2017, the State may not, with respect to Bonds issued or anticipated to be issued, participate in and enter into interest rate exchange agreements, financial futures contracts, or any other similar arrangements alleged to have the purpose of managing interest rate exposure. Provides that the amount of the State's variable rate exposure with respect to Bonds shall not exceed 10% (rather than 20%). Makes other changes.

Actions 
DateChamber Action
  2/8/2017HouseFiled with the Clerk by Rep. Emanuel Chris Welch
  2/8/2017HouseFirst Reading
  2/8/2017HouseReferred to Rules Committee
  2/22/2017HouseAssigned to Executive Committee
  3/7/2017HouseRe-assigned to State Government Administration Committee
  3/31/2017HouseRule 19(a) / Re-referred to Rules Committee
  1/8/2019HouseSession Sine Die

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