Date	Chamber	Action
1/11/2011	House	Session Sine Die

Statutes Amended In Order of Appearance

110 ILCS 947/152 new

Synopsis As Introduced
Amends the Higher Education Student Assistance Act. Provides that bonds issued in accordance with the Act may be designated by the Illinois Student Assistance Commission as guaranteed by the State of Illinois. Provides that this guarantee shall constitute a general obligation of the State of Illinois, with the full faith, credit, and resources of the State of Illinois irrevocably pledged for the punctual payment of the principal of, interest on, and premium, if any, on any such bond. Provides that these provisions are irrepealable until all such bonds are paid in full as to both principal and interest. Provides that any bonds designated pursuant to these provisions shall be issued by the Commission on or prior to December 31, 2009 and shall be limited in aggregate principal issuance amount to not greater than $50,000,000. Sets forth provisions concerning appropriations for insufficient amounts, a continuing appropriation for insufficient appropriations, the rights and powers of the Commission not being impaired, and allowing a civil action to compel payment. Effective immediately.

State Debt Impact Note (Government Forecasting & Accountability)

HB 689 would allow the Illinois Student Assistance Commission to issue $50 million in bonds by December 31, 2009, to be backed by the State of Illinois' general obligation pledge. Given the fact that the underlying student loans are 97% guaranteed by the U.S. Department of Education, if the general obligation pledge were to be tapped, the State could pay up to approximately $1.7 million ($1.5 million in principal and $200,000 in interest, representing the 3% not guaranteed by the U.S. Department of Education). These estimates are made using a 5-year level debt service plan at an interest rate of 4.75%.

Fiscal Note (Illinois Student Assistance Commission)

HB 689 would allow the Illinois Student Assistance Commission (ISAC) to issue $50 million in bonds by December 31, 2009, to be backed by the State of Illinois' general obligation pledge. The underlying federal student loans are 97% guaranteed by the U.S. Department of Education, meaning that if the general obligation pledge were to be called upon, the State could pay up to approximately $1.7 million ($1.5 million representing the 3% not guaranteed by the USDOE and $200,000 in interest). These estimates are made using a 5-year, level debt service plan at an interest rate of 4.75%. The Commission will also establish a debt reserve fund of 4% ($2 million) of cash collateral to cover the remaining outstanding value of the bonds; therefore the State is not expected to incur any costs associated with this bond issue. Proceeds from the bonds will be used to fund the ISAC's participation in the federal Rehabilitation Loan Program, resulting in a stream of federal revenue for ISAC of approximately $11 million to 15 million over 12-14 months.

Actions 

Date	Chamber	Action
2/5/2009	House	Filed with the Clerk by Rep. David E. Miller
2/5/2009	House	Chief Co-Sponsor Rep. Karen May
2/6/2009	House	First Reading
2/6/2009	House	Referred to Rules Committee
2/11/2009	House	Added Chief Co-Sponsor Rep. Robert W. Pritchard
2/11/2009	House	Assigned to Higher Education Committee
2/19/2009	House	Do Pass / Short Debate Higher Education Committee; 007-000-000
2/20/2009	House	Placed on Calendar 2nd Reading - Short Debate
2/20/2009	House	State Debt Impact Note Filed
2/20/2009	House	Added Co-Sponsor Rep. William B. Black
2/24/2009	House	Second Reading - Short Debate
2/24/2009	House	Placed on Calendar Order of 3rd Reading - Short Debate
2/24/2009	House	Fiscal Note Filed
2/26/2009	House	Added Chief Co-Sponsor Rep. Arthur L. Turner
4/3/2009	House	Rule 19(a) / Re-referred to Rules Committee
1/11/2011	House	Session Sine Die

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