Bill Status of SB 788   95th General Assembly

Short Description:  FINANCE-TECH

Senate Sponsors
Sen. Don Harmon-Emil Jones, Jr.-Mattie Hunter-Donne E. Trotter

House Sponsors
(Rep. Gary Hannig)


Last Action  View All Actions

DateChamber Action
  1/13/2009SenateSession Sine Die

Statutes Amended In Order of Appearance
30 ILCS 105/8.12from Ch. 127, par. 144.12

Synopsis As Introduced
Amends the State Finance Act. Makes a technical change in a Section concerning the State Pensions Fund.

Senate Floor Amendment No. 1
Deletes reference to:
30 ILCS 105/8.12
Adds reference to:
30 ILCS 330/2from Ch. 127, par. 652
30 ILCS 330/2.5
30 ILCS 330/7.2
30 ILCS 330/9from Ch. 127, par. 659
30 ILCS 330/11from Ch. 127, par. 661
40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
40 ILCS 5/2-134from Ch. 108 1/2, par. 2-134
40 ILCS 5/14-131from Ch. 108 1/2, par. 14-131
40 ILCS 5/14-135.08from Ch. 108 1/2, par. 14-135.08
40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
40 ILCS 5/15-165from Ch. 108 1/2, par. 15-165
40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131
40 ILCS 5/18-140from Ch. 108 1/2, par. 18-140

Replaces everything after the enacting clause. Amends the General Obligation Bond Act. Authorizes an additional $16,000,000,000 in general obligation bonds, the proceeds of which, after payment of bond sale expenses, shall be deposited into the Pension Contribution Fund. Provides that the term for these bonds may not exceed 30 years, with payment of principal beginning in the first State fiscal year following the fiscal year of issuance and including periodic increases in principal payments thereafter. Amends the Illinois Pension Code in relation to the 5 State-funded retirement systems. Provides amounts for the fiscal year 2009 State contribution payment for each system. Provides that for each of State fiscal years 2010 through 2038, the State contribution to each system shall be increased in an annual amount equal to the increase from the required State contribution from the preceding year plus 3%, so that by State fiscal year 2038, the State is contributing at the rate required to have the assets of the System at 90% of the total actuarial liabilities of the System. Requires the board of trustees of each retirement system to ensure that at least 19% of the proceeds from the issuance of general obligation bonds under the General Obligation Bond Act are invested through qualified investment advisers who are a "minority owned business" or a "female owned business" as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. Makes other changes. Effective immediately.

Senate Floor Amendment No. 2
Provides that the investment contract or other investment asset purchased by the Governor's Office of Management and Budget at the request of the Illinois State Board of Investments or state pension system shall be in an amount specified by the Illinois State Board of Investments or state pension system, provide for a guaranteed minimum interest rate, be with an issuer satisfactory to the Illinois State Board of Investments or state pension system, and have a credit rating of A3 or higher from Moody's Investor Services or A- or higher from Standard & Poor's. In provisions amending the General Assembly Article of the Illinois Pension Code, provides that the Board of Trustees must ensure that at least 19% of the proceeds from the issuance of the general obligation bonds authorized by this amendatory Act are invested through qualified investment advisers who are a "minority owned business" or a "female owned business" as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act (rather than are invested with the assistance of qualified financial consultants who are a "minority owned business" or a "female owned business").

 State Debt Impact Note (Government Forecasting & Accountability)
 SB 788, as engrossed, would increase: General Obligation principal by $16.0 billion; Potential General Obligation debt by $33.0-$40.0 billion; Debt service payments ranging from $1.0-$2.6 billion. Scenarios run of potential G.O. debt and debt service payments were made using different interest rates up to 5.95%, and different structures (excluding fixed principal payments not to be done if this amendment becomes law), and include different estimates received from the Governor's Office of Management and Budget.

 Pension Note (Government Forecasting & Accountability)
 The fiscal impact of SB 788, as engrossed, will depend in large measure on investment returns earned on pension bond proceeds. An actuarial analysis of future state contributions has not yet been completed.

 State Debt Impact Note (Government Forecasting & Accountability)
 SB 788, as engrossed, would increase: General Obligation principal by $16.0 billion; Potential General Obligation debt by $33.0-$40.0 billion; Debt service payments ranging from $1.0-$2.6 billion. Scenarios run of potential G.O. debt and debt service payments were made using different interest rates up to 5.95%, and different structures (excluding fixed principal payments not to be done if this amendment becomes law), and include different estimates received from the Governor's Office of Management and Budget.

Actions 
DateChamber Action
  2/8/2007SenateFiled with Secretary by Sen. Ira I. Silverstein
  2/8/2007SenateChief Co-Sponsor Sen. Emil Jones, Jr.
  2/8/2007SenateFirst Reading
  2/8/2007SenateReferred to Rules
  3/7/2007SenateAssigned to Executive
  3/15/2007SenateDo Pass Executive; 007-005-000
  3/15/2007SenatePlaced on Calendar Order of 2nd Reading March 20, 2007
  3/22/2007SenateSecond Reading
  3/22/2007SenatePlaced on Calendar Order of 3rd Reading March 27, 2007
  3/30/2007SenateRule 2-10 Third Reading Deadline Established As May 31, 2007
  5/31/2007SenateRule 2-10 Third Reading Deadline Established As December 31, 2007
  12/3/2007SenatePursuant to Senate Rule 3-9(b) / Referred to Rules
  5/20/2008SenateApproved for Consideration Rules
  5/20/2008SenatePlaced on Calendar Order of 3rd Reading May 21, 2008
  5/22/2008SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. Don Harmon
  5/22/2008SenateSenate Floor Amendment No. 1 Referred to Rules
  5/22/2008SenateRule 2-10 Third Reading Deadline Established As May 31, 2008
  5/22/2008SenateSenate Floor Amendment No. 1 Rules Refers to Revenue
  5/23/2008SenateSenate Floor Amendment No. 1 Recommend Do Adopt Revenue; 006-000-000
  5/23/2008SenateChief Sponsor Changed to Sen. Don Harmon
  5/23/2008SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. Don Harmon
  5/23/2008SenateSenate Floor Amendment No. 2 Referred to Rules
  5/27/2008SenateSenate Floor Amendment No. 2 Rules Refers to Revenue
  5/28/2008SenateSenate Floor Amendment No. 2 Recommend Do Adopt Revenue; 006-003-000
  5/29/2008SenateAdded as Chief Co-Sponsor Sen. Mattie Hunter
  5/29/2008SenateAdded as Chief Co-Sponsor Sen. Donne E. Trotter
  5/29/2008SenateRecalled to Second Reading
  5/29/2008SenateSenate Floor Amendment No. 1 Adopted; 036-021-000; Harmon
  5/29/2008SenateSenate Floor Amendment No. 2 Adopted; 036-020-000; Harmon
  5/29/2008SenatePlaced on Calendar Order of 3rd Reading
  5/29/2008SenateThird Reading - Passed; 037-021-000
  5/29/2008HouseArrived in House
  5/29/2008HousePlaced on Calendar Order of First Reading
  5/29/2008HouseChief House Sponsor Rep. Gary Hannig
  5/29/2008HouseFirst Reading
  5/29/2008HouseReferred to Rules Committee
  5/30/2008HouseFinal Action Deadline Extended-9(b) May 31, 2008
  5/30/2008HouseAssigned to Executive Committee
  5/30/2008HouseState Debt Impact Note Filed
  5/31/2008HousePension Note Filed
  5/31/2008HouseState Debt Impact Note Filed
  5/31/2008HouseRule 19(a) / Re-referred to Rules Committee
  7/3/2008HouseAssigned to Executive Committee
  7/9/2008HouseLegislation Considered in Special Session No. 20
  7/9/2008HouseMotion Do Pass - Lost Executive Committee; 001-011-000
  7/9/2008HouseRemains in Executive Committee
  11/30/2008HouseRule 19(a) / Re-referred to Rules Committee
  1/13/2009SenateSession Sine Die

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