97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB0003

 

Introduced 1/13/2011, by Sen. John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Finance Act. Creates the General Obligation Restructuring Bond Fund and the General Obligation Restructuring Bond Debt Service Fund as special funds in the State treasury. Provides that the Comptroller shall transfer into the General Obligation Restructuring Bond Debt Service Fund certain amounts to service debt due on State General Obligation Restructuring Bonds. Amends the General Obligation Bond Act. Increases total authorized amount of General Obligation Bonds. Provides that the $8,750,000,000 of Bonds authorized by this amendatory Act shall be used to pay vouchers that are at least 60 days past due, medical expenses incurred by the State under its health plans, corporate income tax refunds, and other operating expenses of the State. Provides that the proceeds of these Bonds shall be deposited in the General Obligation Restructuring Bond Fund. Provides for the conditions for issuance and sale of State General Obligation Restructuring Bonds. Makes other changes. Effective immediately.


LRB097 05755 PJG 45819 b

FISCAL NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0003LRB097 05755 PJG 45819 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.786, 5.787, 6z-85, 6z-86, and 6z-87 as follows:
 
6    (30 ILCS 105/5.786 new)
7    Sec. 5.786. General Obligation Restructuring Bond Fund.
 
8    (30 ILCS 105/5.787 new)
9    Sec. 5.787. General Obligation Restructuring Bond Debt
10Service Fund.
 
11    (30 ILCS 105/6z-85 new)
12    Sec. 6z-85. State General Obligation Restructuring Bonds.
13If and when the State issues any State General Obligation
14Restructuring Bonds defined in Section 7.6 of the General
15Obligation Bond Act, the Comptroller shall transfer into the
16State General Obligation Restructuring Bond Debt Service Fund
17the amounts set forth in this Section 6z-85. The Governor's
18Office of Management and Budget shall certify to the
19Comptroller and the Treasurer, on the date of issuance of any
20State General Obligation Restructuring Bond and thereafter by
21the last business day of each fiscal year, the amount of funds

 

 

SB0003- 2 -LRB097 05755 PJG 45819 b

1sufficient to pay the aggregate of the principal of, interest
2on, and premium, if any, on State General Obligation
3Restructuring Bonds payable with respect to the prospective
4fiscal year (or, in the case of a partial fiscal year, for the
5remainder of that fiscal year). Interest payable on variable
6rate bonds shall be calculated at the maximum rate of interest
7that may be payable for the relevant period, after taking into
8account any credits permitted in the related indenture or other
9instrument against the amount of interest required to be
10appropriated for that period pursuant to subsection (c) of
11Section 14 of the General Obligation Bond Act. Commencing with
12the first business day of the fiscal year to which such
13certification relates (or, in the case of a partial fiscal
14year, the first business day of the month following the month
15in which State General Obligation Restructuring Bonds were
16issued) and continuing on a monthly basis for each successive
17month thereafter, the Treasurer and the Comptroller shall
18transfer $129,000,000 into the State General Obligation
19Restructuring Bond Debt Service Fund. The Comptroller shall
20continue making monthly transfers into the State General
21Obligation Restructuring Bond Debt Service Fund until such time
22as the aggregate amount of funds transferred into the State
23General Obligation Restructuring Bond Debt Service Fund in a
24fiscal year (or partial period) equals the amount of funds
25necessary to service the debt for such fiscal year (or partial
26period) on the Bonds, as certified by the Governor's Office of

 

 

SB0003- 3 -LRB097 05755 PJG 45819 b

1Management and Budget. Such amounts shall be set aside and used
2for the purpose of paying and discharging the principal and
3interest on such bonds when due and payable and for no other
4purpose. Interest on Bonds for which moneys have already been
5deposited into the capitalized interest account within the
6General Obligation Bond Retirement and Interest Fund shall not
7be included in the calculation of the amounts to be transferred
8under this subsection.
 
9    (30 ILCS 105/6z-86 new)
10    Sec. 6z-86. General Obligation Restructuring Bond Fund.
11The General Obligation Restructuring Bond Fund is created as a
12special fund in the State treasury for the purpose of receiving
13and disbursing moneys in accordance with Section 7.6 of the
14General Obligation Bond Act. All money in the General
15Obligation Restructuring Bond Fund must be used to make the
16transfers and payments required under that Section.
 
17    (30 ILCS 105/6z-87 new)
18    Sec. 6z-87. General Obligation Restructuring Bond Debt
19Service Fund. The General Obligation Restructuring Bond Debt
20Service Fund is created as a special fund in the State
21treasury.
 
22    Section 10. The General Obligation Bond Act is amended by
23changing Sections 2, 2.5, 8, 9, 12, 13, 14, and 15 and by

 

 

SB0003- 4 -LRB097 05755 PJG 45819 b

1adding Section 7.6 as follows:
 
2    (30 ILCS 330/2)  (from Ch. 127, par. 652)
3    Sec. 2. Authorization for Bonds. The State of Illinois is
4authorized to issue, sell and provide for the retirement of
5General Obligation Bonds of the State of Illinois for the
6categories and specific purposes expressed in Sections 2
7through 8 of this Act, in the total amount of $45,967,777,443
8$37,217,777,443 $36,967,777,443.
9    The bonds authorized in this Section 2 and in Section 16 of
10this Act are herein called "Bonds".
11    Of the total amount of Bonds authorized in this Act, up to
12$2,200,000,000 in aggregate original principal amount may be
13issued and sold in accordance with the Baccalaureate Savings
14Act in the form of General Obligation College Savings Bonds.
15    Of the total amount of Bonds authorized in this Act, up to
16$300,000,000 in aggregate original principal amount may be
17issued and sold in accordance with the Retirement Savings Act
18in the form of General Obligation Retirement Savings Bonds.
19    Of the total amount of Bonds authorized in this Act, the
20additional $10,000,000,000 authorized by Public Act 93-2 and
21the $3,466,000,000 authorized by Public Act 96-43 shall be used
22solely as provided in Section 7.2.
23    Of the total amount of Bonds authorized in this Act,
24$8,750,000,000 of the additional amount of Bonds authorized by
25this amendatory Act of the 97th General Assembly shall be used

 

 

SB0003- 5 -LRB097 05755 PJG 45819 b

1solely as provided in Section 7.6 and shall be issued by July
21, 2012.
3    The issuance and sale of Bonds pursuant to the General
4Obligation Bond Act is an economical and efficient method of
5financing the long-term capital needs of the State. This Act
6will permit the issuance of a multi-purpose General Obligation
7Bond with uniform terms and features. This will not only lower
8the cost of registration but also reduce the overall cost of
9issuing debt by improving the marketability of Illinois General
10Obligation Bonds.
11(Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09; 96-36,
12eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10;
1396-1000, eff. 7-2-10; revised 9-3-10.)
 
14    (30 ILCS 330/2.5)
15    Sec. 2.5. Limitation on issuance of Bonds.
16    (a) Except as provided in subsections subsection (b) and
17(c), no Bonds may be issued if, after the issuance, in the next
18State fiscal year after the issuance of the Bonds, the amount
19of debt service (including principal, whether payable at
20maturity or pursuant to mandatory sinking fund installments,
21and interest) on all then-outstanding Bonds, other than Bonds
22authorized by this amendatory Act of the 96th General Assembly,
23would exceed 7% of the aggregate appropriations from the
24general funds (which consist of the General Revenue Fund, the
25Common School Fund, the General Revenue Common School Special

 

 

SB0003- 6 -LRB097 05755 PJG 45819 b

1Account Fund, and the Education Assistance Fund) and the Road
2Fund for the fiscal year immediately prior to the fiscal year
3of the issuance.
4    (b) If the Comptroller and Treasurer each consent in
5writing, Bonds may be issued even if the issuance does not
6comply with subsection (a).
7    (c) Subsection (a) shall not apply to bonds authorized in
8Section 7.6, and the debt service, including principal, whether
9payable at maturity or pursuant to mandatory sinking fund
10installments, and interest, on Bonds authorized in Section 7.6
11shall be excluded from the calculation set forth in subsection
12(a).
13(Source: P.A. 96-43, eff. 7-15-09.)
 
14    (30 ILCS 330/7.6 new)
15    Sec. 7.6. State General Obligation Restructuring Bonds.
16    (a) The amount of $8,750,000,000 of Bonds authorized by
17this amendatory Act of the 97th General Assembly is authorized
18to be used for the purposes of (i) paying, from time to time,
19vouchers that are at least 60 days past due; (ii) paying
20medical expenses and other obligations incurred by the State
21under its health plans and programs; (iii) paying corporate
22income tax refunds; and (iv) paying other unfunded liabilities
23of the State as incurred from time to time.
24    (b) As used in this Act, "State General Obligation
25Restructuring Bonds" means Bonds authorized by this amendatory

 

 

SB0003- 7 -LRB097 05755 PJG 45819 b

1Act of the 97th General Assembly and issued under this Act for
2the purposes authorized in this Section. References to Bonds
3authorized under this Section 7.6 mean Bonds, the proceeds of
4which are to be used as authorized in subsection (a).
5    (c) The proceeds of State General Obligation Restructuring
6Bonds, less the amounts authorized in the Bond Sale Order to be
7deposited directly into the capitalized interest account of the
8General Obligation Bond Retirement and Interest Fund or
9otherwise directly paid out for bond sale expenses under
10Section 8, shall be deposited into the General Obligation
11Restructuring Bond Fund, and the Comptroller and the Treasurer
12shall, as soon as practical, (i) make transfers from the
13General Obligation Restructuring Bond Fund to the General
14Revenue Fund for the purpose of making the payments
15contemplated by this Section and (ii) make such payments.
 
16    (30 ILCS 330/8)  (from Ch. 127, par. 658)
17    Sec. 8. Bond sale expenses.
18    (a) An amount not to exceed 0.5 percent of the principal
19amount of the proceeds of sale of each bond sale is authorized
20to be used to pay the reasonable costs of issuance and sale,
21including, without limitation, underwriter's discounts and
22fees, but excluding bond insurance, of State of Illinois
23general obligation bonds authorized and sold pursuant to this
24Act, provided that no salaries of State employees or other
25State office operating expenses shall be paid out of

 

 

SB0003- 8 -LRB097 05755 PJG 45819 b

1non-appropriated proceeds, provided further that the percent
2shall be 1.0% for each sale of "Build America Bonds" or
3"Qualified School Construction Bonds" as defined in
4subsections (d) and (e) of Section 9, respectively, and for
5each sale of Bonds authorized by Section 7.6. The Governor's
6Office of Management and Budget shall compile a summary of all
7costs of issuance on each sale (including both costs paid out
8of proceeds and those paid out of appropriated funds) and post
9that summary on its web site within 20 business days after the
10issuance of the Bonds. The summary shall include, as
11applicable, the respective percentages of participation and
12compensation of each underwriter that is a member of the
13underwriting syndicate, legal counsel, financial advisors, and
14other professionals for the bond issue and an identification of
15all costs of issuance paid to minority owned businesses, female
16owned businesses, and businesses owned by persons with
17disabilities. The terms "minority owned businesses", "female
18owned businesses", and "business owned by a person with a
19disability" have the meanings given to those terms in the
20Business Enterprise for Minorities, Females, and Persons with
21Disabilities Act. That posting shall be maintained on the web
22site for a period of at least 30 days. In addition, the
23Governor's Office of Management and Budget shall provide a
24written copy of each summary of costs to the Speaker and
25Minority Leader of the House of Representatives, the President
26and Minority Leader of the Senate, and the Commission on

 

 

SB0003- 9 -LRB097 05755 PJG 45819 b

1Government Forecasting and Accountability within 20 business
2days after each issuance of the Bonds. In addition, the
3Governor's Office of Management and Budget shall provide copies
4of all contracts under which any costs of issuance are paid or
5to be paid to the Commission on Government Forecasting and
6Accountability within 20 business days after the issuance of
7Bonds for which those costs are paid or to be paid. Instead of
8filing a second or subsequent copy of the same contract, the
9Governor's Office of Management and Budget may file a statement
10that specified costs are paid under specified contracts filed
11earlier with the Commission.
12    (b) The Director of the Governor's Office of Management and
13Budget shall not, in connection with the issuance of Bonds,
14contract with any underwriter, financial advisor, or attorney
15unless that underwriter, financial advisor, or attorney
16certifies that the underwriter, financial advisor, or attorney
17has not and will not pay a contingent fee, whether directly or
18indirectly, to a third party for having promoted the selection
19of the underwriter, financial advisor, or attorney for that
20contract. In the event that the Governor's Office of Management
21and Budget determines that an underwriter, financial advisor,
22or attorney has filed a false certification with respect to the
23payment of contingent fees, the Governor's Office of Management
24and Budget shall not contract with that underwriter, financial
25advisor, or attorney, or with any firm employing any person who
26signed false certifications, for a period of 2 calendar years,

 

 

SB0003- 10 -LRB097 05755 PJG 45819 b

1beginning with the date the determination is made. The validity
2of Bonds issued under such circumstances of violation pursuant
3to this Section shall not be affected.
4(Source: P.A. 96-828, eff. 12-2-09.)
 
5    (30 ILCS 330/9)  (from Ch. 127, par. 659)
6    Sec. 9. Conditions for Issuance and Sale of Bonds -
7Requirements for Bonds.
8    (a) Except as otherwise provided in this subsection and as
9provided for in subsection (f), Bonds shall be issued and sold
10from time to time, in one or more series, in such amounts and
11at such prices as may be directed by the Governor, upon
12recommendation by the Director of the Governor's Office of
13Management and Budget. Bonds shall be in such form (either
14coupon, registered or book entry), in such denominations,
15payable within 25 years from their date, subject to such terms
16of redemption with or without premium, bear interest payable at
17such times and at such fixed or variable rate or rates, and be
18dated as shall be fixed and determined by the Director of the
19Governor's Office of Management and Budget in the order
20authorizing the issuance and sale of any series of Bonds, which
21order shall be approved by the Governor and is herein called a
22"Bond Sale Order"; provided however, that interest payable at
23fixed or variable rates shall not exceed that permitted in the
24Bond Authorization Act, as now or hereafter amended. Bonds
25shall be payable at such place or places, within or without the

 

 

SB0003- 11 -LRB097 05755 PJG 45819 b

1State of Illinois, and may be made registrable as to either
2principal or as to both principal and interest, as shall be
3specified in the Bond Sale Order. Bonds may be callable or
4subject to purchase and retirement or tender and remarketing as
5fixed and determined in the Bond Sale Order. Bonds, other than
6Bonds issued under Section 3 of this Act for the costs
7associated with the purchase and implementation of information
8technology, (i) except for refunding Bonds satisfying the
9requirements of Section 16 of this Act and sold during fiscal
10year 2009, 2010, or 2011, must be issued with principal or
11mandatory redemption amounts in equal amounts, with the first
12maturity issued occurring within the fiscal year in which the
13Bonds are issued or within the next succeeding fiscal year and
14(ii) must mature or be subject to mandatory redemption each
15fiscal year thereafter up to 25 years, except for refunding
16Bonds satisfying the requirements of Section 16 of this Act and
17sold during fiscal year 2009, 2010, or 2011 which must mature
18or be subject to mandatory redemption each fiscal year
19thereafter up to 16 years. Bonds issued under Section 3 of this
20Act for the costs associated with the purchase and
21implementation of information technology must be issued with
22principal or mandatory redemption amounts in equal amounts,
23with the first maturity issued occurring with the fiscal year
24in which the respective bonds are issued or with the next
25succeeding fiscal year, with the respective bonds issued
26maturing or subject to mandatory redemption each fiscal year

 

 

SB0003- 12 -LRB097 05755 PJG 45819 b

1thereafter up to 10 years. Notwithstanding any provision of
2this Act to the contrary, the Bonds authorized by Public Act
396-43 shall be payable within 5 years from their date and must
4be issued with principal or mandatory redemption amounts in
5equal amounts, with payment of principal or mandatory
6redemption beginning in the first fiscal year following the
7fiscal year in which the Bonds are issued.
8    In the case of any series of Bonds bearing interest at a
9variable interest rate ("Variable Rate Bonds"), in lieu of
10determining the rate or rates at which such series of Variable
11Rate Bonds shall bear interest and the price or prices at which
12such Variable Rate Bonds shall be initially sold or remarketed
13(in the event of purchase and subsequent resale), the Bond Sale
14Order may provide that such interest rates and prices may vary
15from time to time depending on criteria established in such
16Bond Sale Order, which criteria may include, without
17limitation, references to indices or variations in interest
18rates as may, in the judgment of a remarketing agent, be
19necessary to cause Variable Rate Bonds of such series to be
20remarketable from time to time at a price equal to their
21principal amount, and may provide for appointment of a bank,
22trust company, investment bank, or other financial institution
23to serve as remarketing agent in that connection. The Bond Sale
24Order may provide that alternative interest rates or provisions
25for establishing alternative interest rates, different
26security or claim priorities, or different call or amortization

 

 

SB0003- 13 -LRB097 05755 PJG 45819 b

1provisions will apply during such times as Variable Rate Bonds
2of any series are held by a person providing credit or
3liquidity enhancement arrangements for such Bonds as
4authorized in subsection (b) of this Section. The Bond Sale
5Order may also provide for such variable interest rates to be
6established pursuant to a process generally known as an auction
7rate process and may provide for appointment of one or more
8financial institutions to serve as auction agents and
9broker-dealers in connection with the establishment of such
10interest rates and the sale and remarketing of such Bonds.
11    (b) In connection with the issuance of any series of Bonds,
12the State may enter into arrangements to provide additional
13security and liquidity for such Bonds, including, without
14limitation, bond or interest rate insurance or letters of
15credit, lines of credit, bond purchase contracts, or other
16arrangements whereby funds are made available to retire or
17purchase Bonds, thereby assuring the ability of owners of the
18Bonds to sell or redeem their Bonds. The State may enter into
19contracts and may agree to pay fees to persons providing such
20arrangements, but only under circumstances where the Director
21of the Governor's Office of Management and Budget certifies
22that he or she reasonably expects the total interest paid or to
23be paid on the Bonds, together with the fees for the
24arrangements (being treated as if interest), would not, taken
25together, cause the Bonds to bear interest, calculated to their
26stated maturity, at a rate in excess of the rate that the Bonds

 

 

SB0003- 14 -LRB097 05755 PJG 45819 b

1would bear in the absence of such arrangements.
2    The State may, with respect to Bonds issued or anticipated
3to be issued, participate in and enter into arrangements with
4respect to interest rate protection or exchange agreements,
5guarantees, or financial futures contracts for the purpose of
6limiting, reducing, or managing interest rate exposure. The
7authority granted under this paragraph, however, shall not
8increase the principal amount of Bonds authorized to be issued
9by law. The arrangements may be executed and delivered by the
10Director of the Governor's Office of Management and Budget on
11behalf of the State. Net payments for such arrangements shall
12constitute interest on the Bonds and shall be paid from the
13General Obligation Bond Retirement and Interest Fund. The
14Director of the Governor's Office of Management and Budget
15shall at least annually certify to the Governor and the State
16Comptroller his or her estimate of the amounts of such net
17payments to be included in the calculation of interest required
18to be paid by the State.
19    (c) Prior to the issuance of any Variable Rate Bonds
20pursuant to subsection (a), the Director of the Governor's
21Office of Management and Budget shall adopt an interest rate
22risk management policy providing that the amount of the State's
23variable rate exposure with respect to Bonds shall not exceed
2420%. This policy shall remain in effect while any Bonds are
25outstanding and the issuance of Bonds shall be subject to the
26terms of such policy. The terms of this policy may be amended

 

 

SB0003- 15 -LRB097 05755 PJG 45819 b

1from time to time by the Director of the Governor's Office of
2Management and Budget but in no event shall any amendment cause
3the permitted level of the State's variable rate exposure with
4respect to Bonds to exceed 20%.
5    (d) "Build America Bonds" in this Section means Bonds
6authorized by Section 54AA of the Internal Revenue Code of
71986, as amended ("Internal Revenue Code"), and bonds issued
8from time to time to refund or continue to refund "Build
9America Bonds".
10    (e) Notwithstanding any other provision of this Section,
11Qualified School Construction Bonds shall be issued and sold
12from time to time, in one or more series, in such amounts and
13at such prices as may be directed by the Governor, upon
14recommendation by the Director of the Governor's Office of
15Management and Budget. Qualified School Construction Bonds
16shall be in such form (either coupon, registered or book
17entry), in such denominations, payable within 25 years from
18their date, subject to such terms of redemption with or without
19premium, and if the Qualified School Construction Bonds are
20issued with a supplemental coupon, bear interest payable at
21such times and at such fixed or variable rate or rates, and be
22dated as shall be fixed and determined by the Director of the
23Governor's Office of Management and Budget in the order
24authorizing the issuance and sale of any series of Qualified
25School Construction Bonds, which order shall be approved by the
26Governor and is herein called a "Bond Sale Order"; except that

 

 

SB0003- 16 -LRB097 05755 PJG 45819 b

1interest payable at fixed or variable rates, if any, shall not
2exceed that permitted in the Bond Authorization Act, as now or
3hereafter amended. Qualified School Construction Bonds shall
4be payable at such place or places, within or without the State
5of Illinois, and may be made registrable as to either principal
6or as to both principal and interest, as shall be specified in
7the Bond Sale Order. Qualified School Construction Bonds may be
8callable or subject to purchase and retirement or tender and
9remarketing as fixed and determined in the Bond Sale Order.
10Qualified School Construction Bonds must be issued with
11principal or mandatory redemption amounts or sinking fund
12payments into the General Obligation Bond Retirement and
13Interest Fund (or subaccount therefor) in equal amounts, with
14the first maturity issued, mandatory redemption payment or
15sinking fund payment occurring within the fiscal year in which
16the Qualified School Construction Bonds are issued or within
17the next succeeding fiscal year, with Qualified School
18Construction Bonds issued maturing or subject to mandatory
19redemption or with sinking fund payments thereof deposited each
20fiscal year thereafter up to 25 years. Sinking fund payments
21set forth in this subsection shall be permitted only to the
22extent authorized in Section 54F of the Internal Revenue Code
23or as otherwise determined by the Director of the Governor's
24Office of Management and Budget. "Qualified School
25Construction Bonds" in this subsection means Bonds authorized
26by Section 54F of the Internal Revenue Code and for bonds

 

 

SB0003- 17 -LRB097 05755 PJG 45819 b

1issued from time to time to refund or continue to refund such
2"Qualified School Construction Bonds".
3    (f) Notwithstanding any other provision of this Section,
4State General Obligation Restructuring Bonds shall be issued
5and sold from time to time, in one or more series, in such
6amounts and at such prices as may be directed by the Governor,
7upon recommendation by the Director of the Governor's Office of
8Management and Budget. State General Obligation Restructuring
9Bonds shall be in such form, either coupon, registered or book
10entry, in such denominations, payable within 15 years from
11their date, subject to the following terms of redemption with
12or without premium and in accordance with the following
13schedule, except the following amounts shall be prorated if
14less than the total additional amount of State General
15Obligation Restructuring Bonds authorized by this amendatory
16Act of the 97th General Assembly are issued:
17        For fiscal year 2012, $100,000,000;
18        For fiscal year 2013, $100,000,000;
19        For fiscal year 2014, $200,000,000;
20        For fiscal year 2015, $450,000,000;
21        For fiscal years 2016 through 2025, $765,000,000; and
22        For fiscal year 2026, $250,000,000.
23The State General Obligation Restructuring Bonds shall bear
24interest payable at such times and at such fixed or variable
25rate or rates, and be dated as shall be fixed and determined by
26the Director of the Governor's Office of Management and Budget

 

 

SB0003- 18 -LRB097 05755 PJG 45819 b

1in the order authorizing the issuance and sale of any series of
2State General Obligation Restructuring Bonds, which order
3shall be approved by the Governor and is herein called a "Bond
4Sale Order"; provided however, that interest payable at fixed
5or variable rates shall not exceed that permitted in the Bond
6Authorization Act, as now or hereafter amended. State General
7Obligation Restructuring Bonds shall be payable at such place
8or places, within or without the State of Illinois, and may be
9made registrable as to either principal or as to both principal
10and interest, as shall be specified in the Bond Sale Order.
11State General Obligation Restructuring Bonds may be callable or
12subject to purchase and retirement or tender and remarketing as
13fixed and determined in the Bond Sale Order.
14(Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43,
15eff. 7-15-09; 96-828, eff. 12-2-09.)
 
16    (30 ILCS 330/12)  (from Ch. 127, par. 662)
17    Sec. 12. Allocation of Proceeds from Sale of Bonds.
18    (a) Proceeds from the sale of Bonds, authorized by Section
193 of this Act, shall be deposited in the separate fund known as
20the Capital Development Fund.
21    (b) Proceeds from the sale of Bonds, authorized by
22paragraph (a) of Section 4 of this Act, shall be deposited in
23the separate fund known as the Transportation Bond, Series A
24Fund.
25    (c) Proceeds from the sale of Bonds, authorized by

 

 

SB0003- 19 -LRB097 05755 PJG 45819 b

1paragraphs (b) and (c) of Section 4 of this Act, shall be
2deposited in the separate fund known as the Transportation
3Bond, Series B Fund.
4    (c-1) Proceeds from the sale of Bonds, authorized by
5paragraph (d) of Section 4 of this Act, shall be deposited into
6the Transportation Bond Series D Fund, which is hereby created.
7    (d) Proceeds from the sale of Bonds, authorized by Section
85 of this Act, shall be deposited in the separate fund known as
9the School Construction Fund.
10    (e) Proceeds from the sale of Bonds, authorized by Section
116 of this Act, shall be deposited in the separate fund known as
12the Anti-Pollution Fund.
13    (f) Proceeds from the sale of Bonds, authorized by Section
147 of this Act, shall be deposited in the separate fund known as
15the Coal Development Fund.
16    (f-2) Proceeds from the sale of Bonds, authorized by
17Section 7.2 of this Act, shall be deposited as set forth in
18Section 7.2.
19    (f-5) Proceeds from the sale of Bonds, authorized by
20Section 7.5 of this Act, shall be deposited as set forth in
21Section 7.5.
22    (f-6) Proceeds from the sale of Bonds, authorized by
23Section 7.6 of this Act, shall be deposited as set forth in
24Section 7.6.
25    (g) Proceeds from the sale of Bonds, authorized by Section
268 of this Act, shall be deposited in the Capital Development

 

 

SB0003- 20 -LRB097 05755 PJG 45819 b

1Fund.
2    (h) Subsequent to the issuance of any Bonds for the
3purposes described in Sections 2 through 8 of this Act, the
4Governor and the Director of the Governor's Office of
5Management and Budget may provide for the reallocation of
6unspent proceeds of such Bonds to any other purposes authorized
7under said Sections of this Act, subject to the limitations on
8aggregate principal amounts contained therein. Upon any such
9reallocation, such unspent proceeds shall be transferred to the
10appropriate funds as determined by reference to paragraphs (a)
11through (g) of this Section.
12(Source: P.A. 96-36, eff. 7-13-09.)
 
13    (30 ILCS 330/13)  (from Ch. 127, par. 663)
14    Sec. 13. Appropriation of Proceeds from Sale of Bonds.
15    (a) At all times, the proceeds from the sale of Bonds
16issued pursuant to this Act are subject to appropriation by the
17General Assembly and, except as provided in Sections Section
187.2 and 7.6, may be obligated or expended only with the written
19approval of the Governor, in such amounts, at such times, and
20for such purposes as the respective State agencies, as defined
21in Section 1-7 of the Illinois State Auditing Act, as amended,
22deem necessary or desirable for the specific purposes
23contemplated in Sections 2 through 8 of this Act.
24    (b) Proceeds from the sale of Bonds for the purpose of
25development of coal and alternative forms of energy shall be

 

 

SB0003- 21 -LRB097 05755 PJG 45819 b

1expended in such amounts and at such times as the Department of
2Commerce and Economic Opportunity, with the advice and
3recommendation of the Illinois Coal Development Board for coal
4development projects, may deem necessary and desirable for the
5specific purpose contemplated by Section 7 of this Act. In
6considering the approval of projects to be funded, the
7Department of Commerce and Economic Opportunity shall give
8special consideration to projects designed to remove sulfur and
9other pollutants in the preparation and utilization of coal,
10and in the use and operation of electric utility generating
11plants and industrial facilities which utilize Illinois coal as
12their primary source of fuel.
13    (c) Except as directed in subsection (c-1) or (c-2), any
14monies received by any officer or employee of the state
15representing a reimbursement of expenditures previously paid
16from general obligation bond proceeds shall be deposited into
17the General Obligation Bond Retirement and Interest Fund
18authorized in Section 14 of this Act.
19    (c-1) Any money received by the Department of
20Transportation as reimbursement for expenditures for high
21speed rail purposes pursuant to appropriations from the
22Transportation Bond, Series B Fund for (i) CREATE (Chicago
23Region Environmental and Transportation Efficiency), (ii) High
24Speed Rail, or (iii) AMTRAK projects authorized by the federal
25government under the provisions of the American Recovery and
26Reinvestment Act of 2009 or the Safe Accountable Flexible

 

 

SB0003- 22 -LRB097 05755 PJG 45819 b

1Efficient Transportation Equity Act—A Legacy for Users
2(SAFETEA-LU), or any successor federal transportation
3authorization Act, shall be deposited into the Federal High
4Speed Rail Trust Fund.
5    (c-2) Any money received by the Department of
6Transportation as reimbursement for expenditures for transit
7capital purposes pursuant to appropriations from the
8Transportation Bond, Series B Fund for projects authorized by
9the federal government under the provisions of the American
10Recovery and Reinvestment Act of 2009 or the Safe Accountable
11Flexible Efficient Transportation Equity Act—A Legacy for
12Users (SAFETEA-LU), or any successor federal transportation
13authorization Act, shall be deposited into the Federal Mass
14Transit Trust Fund.
15(Source: P.A. 96-1488, eff. 12-30-10.)
 
16    (30 ILCS 330/14)  (from Ch. 127, par. 664)
17    Sec. 14. Repayment.
18    (a) To provide for the manner of repayment of Bonds, the
19Governor shall include an appropriation in each annual State
20Budget of monies in such amount as shall be necessary and
21sufficient, for the period covered by such budget, to pay the
22interest, as it shall accrue, on all Bonds issued under this
23Act, to pay and discharge the principal of such Bonds as shall,
24by their terms, fall due during such period, to pay a premium,
25if any, on Bonds to be redeemed prior to the maturity date, and

 

 

SB0003- 23 -LRB097 05755 PJG 45819 b

1to pay sinking fund payments in connection with Qualified
2School Construction Bonds authorized by subsection (e) of
3Section 9. Amounts included in such appropriations for the
4payment of interest on variable rate bonds shall be the maximum
5amounts of interest that may be payable for the period covered
6by the budget, after taking into account any credits permitted
7in the related indenture or other instrument against the amount
8of such interest required to be appropriated for such period.
9Amounts included in such appropriations for the payment of
10interest shall include the amounts certified by the Director of
11the Governor's Office of Management and Budget under subsection
12(b) of Section 9 of this Act.
13    (b) A separate fund in the State Treasury called the
14"General Obligation Bond Retirement and Interest Fund" is
15hereby created.
16    (c) The General Assembly shall annually make
17appropriations to pay the principal of, interest on, and
18premium, if any, on Bonds sold under this Act from the General
19Obligation Bond Retirement and Interest Fund. Amounts included
20in such appropriations for the payment of interest on variable
21rate bonds shall be the maximum amounts of interest that may be
22payable during the fiscal year, after taking into account any
23credits permitted in the related indenture or other instrument
24against the amount of such interest required to be appropriated
25for such period. Amounts included in such appropriations for
26the payment of interest shall include the amounts certified by

 

 

SB0003- 24 -LRB097 05755 PJG 45819 b

1the Director of the Governor's Office of Management and Budget
2under subsection (b) of Section 9 of this Act.
3    If for any reason there are insufficient funds in either
4the General Revenue Fund, or the Road Fund, or the State
5General Obligation Restructuring Bond Debt Service Fund to make
6transfers to the General Obligation Bond Retirement and
7Interest Fund as required by Section 15 of this Act, or if for
8any reason the General Assembly fails to make appropriations
9sufficient to pay the principal of, interest on, and premium,
10if any, on the Bonds, as the same by their terms shall become
11due, this Act shall constitute an irrevocable and continuing
12appropriation of all amounts necessary for that purpose, and
13the irrevocable and continuing authority for and direction to
14the State Treasurer and the Comptroller to make the necessary
15transfers, as directed by the Governor, out of and
16disbursements from the revenues and funds of the State.
17    (d) If, because of insufficient funds in either the General
18Revenue Fund, or the Road Fund, or the State General Obligation
19Restructuring Bond Debt Service Fund, monies have been
20transferred to the General Obligation Bond Retirement and
21Interest Fund, as required by subsection (c) of this Section,
22this Act shall constitute the irrevocable and continuing
23authority for and direction to the State Treasurer and
24Comptroller to reimburse these funds of the State from the
25General Revenue Fund, or the Road Fund, or the State General
26Obligation Restructuring Bond Debt Service Fund, as

 

 

SB0003- 25 -LRB097 05755 PJG 45819 b

1appropriate, by transferring, at such times and in such
2amounts, as directed by the Governor, an amount to these funds
3equal to that transferred from them.
4(Source: P.A. 96-828, eff. 12-2-09.)
 
5    (30 ILCS 330/15)  (from Ch. 127, par. 665)
6    Sec. 15. Computation of Principal and Interest; transfers.
7    (a) Upon each delivery of Bonds authorized to be issued
8under this Act, the Comptroller shall compute and certify to
9the Treasurer the total amount of principal of, interest on,
10and premium, if any, on Bonds issued that will be payable in
11order to retire such Bonds, the amount of principal of,
12interest on and premium, if any, on such Bonds that will be
13payable on each payment date according to the tenor of such
14Bonds during the then current and each succeeding fiscal year,
15and the amount of sinking fund payments needed to be deposited
16in connection with Qualified School Construction Bonds
17authorized by subsection (e) of Section 9. With respect to the
18interest payable on variable rate bonds, such certifications
19shall be calculated at the maximum rate of interest that may be
20payable during the fiscal year, after taking into account any
21credits permitted in the related indenture or other instrument
22against the amount of such interest required to be appropriated
23for such period pursuant to subsection (c) of Section 14 of
24this Act. With respect to the interest payable, such
25certifications shall include the amounts certified by the

 

 

SB0003- 26 -LRB097 05755 PJG 45819 b

1Director of the Governor's Office of Management and Budget
2under subsection (b) of Section 9 of this Act.
3    On or before the last day of each month the State Treasurer
4and Comptroller shall transfer from (1) the Road Fund with
5respect to Bonds issued under paragraph (a) of Section 4 of
6this Act or Bonds issued for the purpose of refunding such
7bonds, (2) the State General Obligation Restructuring Bond Debt
8Service Fund with respect to Bonds issued under Section 7.6 of
9this Act or Bonds issued for the purpose of refunding such
10bonds, and (3) from (2) the General Revenue Fund, with respect
11to all other Bonds issued under this Act, to the General
12Obligation Bond Retirement and Interest Fund an amount
13sufficient to pay the aggregate of the principal of, interest
14on, and premium, if any, on Bonds payable, by their terms on
15the next payment date divided by the number of full calendar
16months between the date of such Bonds and the first such
17payment date, and thereafter, divided by the number of months
18between each succeeding payment date after the first. Such
19computations and transfers shall be made for each series of
20Bonds issued and delivered. Interest payable on variable rate
21bonds shall be calculated at the maximum rate of interest that
22may be payable for the relevant period, after taking into
23account any credits permitted in the related indenture or other
24instrument against the amount of such interest required to be
25appropriated for such period pursuant to subsection (c) of
26Section 14 of this Act. Computations of interest shall include

 

 

SB0003- 27 -LRB097 05755 PJG 45819 b

1the amounts certified by the Director of the Governor's Office
2of Management and Budget under subsection (b) of Section 9 of
3this Act. Interest for which moneys have already been deposited
4into the capitalized interest account within the General
5Obligation Bond Retirement and Interest Fund shall not be
6included in the calculation of the amounts to be transferred
7under this subsection. Notwithstanding any other provision in
8this Section, the transfer provisions provided in this
9paragraph shall not apply to transfers made in fiscal year 2010
10with respect to Bonds issued in fiscal year 2010 pursuant to
11Section 7.2 of this Act. In the case of transfers made in
12fiscal year 2010 with respect to the Bonds issued in fiscal
13year 2010 pursuant to Section 7.2 of this Act, on or before the
1415th day of the month prior to the required debt service
15payment, the State Treasurer and Comptroller shall transfer
16from the General Revenue Fund to the General Obligation Bond
17Retirement and Interest Fund an amount sufficient to pay the
18aggregate of the principal of, interest on, and premium, if
19any, on the Bonds payable in that next month.
20    The transfer of monies herein and above directed is not
21required if monies in the General Obligation Bond Retirement
22and Interest Fund are more than the amount otherwise to be
23transferred as herein above provided, and if the Governor or
24his authorized representative notifies the State Treasurer and
25Comptroller of such fact in writing.
26    (b) After the effective date of this Act, the balance of,

 

 

SB0003- 28 -LRB097 05755 PJG 45819 b

1and monies directed to be included in the Capital Development
2Bond Retirement and Interest Fund, Anti-Pollution Bond
3Retirement and Interest Fund, Transportation Bond, Series A
4Retirement and Interest Fund, Transportation Bond, Series B
5Retirement and Interest Fund, and Coal Development Bond
6Retirement and Interest Fund shall be transferred to and
7deposited in the General Obligation Bond Retirement and
8Interest Fund. This Fund shall be used to make debt service
9payments on the State's general obligation Bonds heretofore
10issued which are now outstanding and payable from the Funds
11herein listed as well as on Bonds issued under this Act.
12    (c) The unused portion of federal funds received for a
13capital facilities project, as authorized by Section 3 of this
14Act, for which monies from the Capital Development Fund have
15been expended shall be deposited upon completion of the project
16in the General Obligation Bond Retirement and Interest Fund.
17Any federal funds received as reimbursement for the completed
18construction of a capital facilities project, as authorized by
19Section 3 of this Act, for which monies from the Capital
20Development Fund have been expended shall be deposited in the
21General Obligation Bond Retirement and Interest Fund.
22(Source: P.A. 96-43, eff. 7-15-09; 96-828, eff. 12-2-09.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.

 

 

SB0003- 29 -LRB097 05755 PJG 45819 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.786 new
4    30 ILCS 105/5.787 new
5    30 ILCS 105/6z-85 new
6    30 ILCS 105/6z-86 new
7    30 ILCS 105/6z-87 new
8    30 ILCS 330/2from Ch. 127, par. 652
9    30 ILCS 330/2.5
10    30 ILCS 330/7.6 new
11    30 ILCS 330/8from Ch. 127, par. 658
12    30 ILCS 330/9from Ch. 127, par. 659
13    30 ILCS 330/12from Ch. 127, par. 662
14    30 ILCS 330/13from Ch. 127, par. 663
15    30 ILCS 330/14from Ch. 127, par. 664
16    30 ILCS 330/15from Ch. 127, par. 665