100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3073

 

Introduced 2/15/2018, by Sen. Paul Schimpf

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Employee, State Universities, and Downstate Teachers Articles of the Illinois Pension Code. Requires those Systems to offer certain inactive members the opportunity to elect to receive an accelerated pension benefit payment equal to 70% of the net present value of their pension benefits in lieu of receiving any pension benefit. Provides that if a person elects to receive an accelerated pension benefit payment, his or her credits and creditable service under that Article shall be terminated upon receipt of the accelerated pension benefit payment; except that the terminated service credit shall be used for the purposes of determining participation and benefits under the State Employees Group Insurance Act of 1971. Provides that a person who receives an accelerated pension benefit payment must direct the System to pay all of that payment as a rollover into another qualified retirement plan or account. Contains provisions concerning return to active service; rulemaking; and qualified plan status. Amends the State Employees Group Insurance Act of 1971 to make related changes. Requires the Authority to issue bonds if the amount of the accelerated pension benefit payments exceed the amount appropriated to each System for those payments. Amends the General Obligation Bond Act. Authorizes $250,000,000 in State Pension Obligation Acceleration Bonds to be sold to pay for accelerated pension benefit payments to eligible persons. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act to create the State Pension Obligation Acceleration Bond Fund. Effective immediately.


LRB100 16948 RPS 32093 b

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

 

 

A BILL FOR

 

SB3073LRB100 16948 RPS 32093 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Employees Group Insurance Act of 1971
5is amended by changing Sections 3 and 10 as follows:
 
6    (5 ILCS 375/3)  (from Ch. 127, par. 523)
7    Sec. 3. Definitions. Unless the context otherwise
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13    (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18    (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2, 14 (including an employee
21who has elected to receive an alternative retirement
22cancellation payment under Section 14-108.5 of the Illinois
23Pension Code in lieu of an annuity or who meets the criteria

 

 

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1for retirement, but in lieu of receiving an annuity under that
2Article has elected to receive an accelerated pension benefit
3payment under Section 14-147.5 of that Article), 15 (including
4an employee who has retired under the optional retirement
5program established under Section 15-158.2 or who meets the
6criteria for retirement, but in lieu of receiving an annuity
7under that Article has elected to receive an accelerated
8pension benefit payment under Section 15-185.5 of the Article),
9paragraphs (2), (3), or (5) of Section 16-106 (including an
10employee who meets the criteria for retirement, but in lieu of
11receiving an annuity under that Article has elected to receive
12an accelerated pension benefit payment under Section 16-190.5
13of the Illinois Pension Code), or Article 18 of the Illinois
14Pension Code; (2) any person who was receiving group insurance
15coverage under this Act as of March 31, 1978 by reason of his
16status as an annuitant, even though the annuity in relation to
17which such coverage was provided is a proportional annuity
18based on less than the minimum period of service required for a
19retirement annuity in the system involved; (3) any person not
20otherwise covered by this Act who has retired as a
21participating member under Article 2 of the Illinois Pension
22Code but is ineligible for the retirement annuity under Section
232-119 of the Illinois Pension Code; (4) the spouse of any
24person who is receiving a retirement annuity under Article 18
25of the Illinois Pension Code and who is covered under a group
26health insurance program sponsored by a governmental employer

 

 

SB3073- 3 -LRB100 16948 RPS 32093 b

1other than the State of Illinois and who has irrevocably
2elected to waive his or her coverage under this Act and to have
3his or her spouse considered as the "annuitant" under this Act
4and not as a "dependent"; or (5) an employee who retires, or
5has retired, from a qualified position, as determined according
6to rules promulgated by the Director, under a qualified local
7government, a qualified rehabilitation facility, a qualified
8domestic violence shelter or service, or a qualified child
9advocacy center. (For definition of "retired employee", see (p)
10post).
11    (b-5) (Blank).
12    (b-6) (Blank).
13    (b-7) (Blank).
14    (c) "Carrier" means (1) an insurance company, a corporation
15organized under the Limited Health Service Organization Act or
16the Voluntary Health Services Plan Act, a partnership, or other
17nongovernmental organization, which is authorized to do group
18life or group health insurance business in Illinois, or (2) the
19State of Illinois as a self-insurer.
20    (d) "Compensation" means salary or wages payable on a
21regular payroll by the State Treasurer on a warrant of the
22State Comptroller out of any State, trust or federal fund, or
23by the Governor of the State through a disbursing officer of
24the State out of a trust or out of federal funds, or by any
25Department out of State, trust, federal or other funds held by
26the State Treasurer or the Department, to any person for

 

 

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1personal services currently performed, and ordinary or
2accidental disability benefits under Articles 2, 14, 15
3(including ordinary or accidental disability benefits under
4the optional retirement program established under Section
515-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
6Article 18 of the Illinois Pension Code, for disability
7incurred after January 1, 1966, or benefits payable under the
8Workers' Compensation or Occupational Diseases Act or benefits
9payable under a sick pay plan established in accordance with
10Section 36 of the State Finance Act. "Compensation" also means
11salary or wages paid to an employee of any qualified local
12government, qualified rehabilitation facility, qualified
13domestic violence shelter or service, or qualified child
14advocacy center.
15    (e) "Commission" means the State Employees Group Insurance
16Advisory Commission authorized by this Act. Commencing July 1,
171984, "Commission" as used in this Act means the Commission on
18Government Forecasting and Accountability as established by
19the Legislative Commission Reorganization Act of 1984.
20    (f) "Contributory", when referred to as contributory
21coverage, shall mean optional coverages or benefits elected by
22the member toward the cost of which such member makes
23contribution, or which are funded in whole or in part through
24the acceptance of a reduction in earnings or the foregoing of
25an increase in earnings by an employee, as distinguished from
26noncontributory coverage or benefits which are paid entirely by

 

 

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1the State of Illinois without reduction of the member's salary.
2    (g) "Department" means any department, institution, board,
3commission, officer, court or any agency of the State
4government receiving appropriations and having power to
5certify payrolls to the Comptroller authorizing payments of
6salary and wages against such appropriations as are made by the
7General Assembly from any State fund, or against trust funds
8held by the State Treasurer and includes boards of trustees of
9the retirement systems created by Articles 2, 14, 15, 16 and 18
10of the Illinois Pension Code. "Department" also includes the
11Illinois Comprehensive Health Insurance Board, the Board of
12Examiners established under the Illinois Public Accounting
13Act, and the Illinois Finance Authority.
14    (h) "Dependent", when the term is used in the context of
15the health and life plan, means a member's spouse and any child
16(1) from birth to age 26 including an adopted child, a child
17who lives with the member from the time of the placement for
18adoption until entry of an order of adoption, a stepchild or
19adjudicated child, or a child who lives with the member if such
20member is a court appointed guardian of the child or (2) age 19
21or over who has a mental or physical disability from a cause
22originating prior to the age of 19 (age 26 if enrolled as an
23adult child dependent). For the health plan only, the term
24"dependent" also includes (1) any person enrolled prior to the
25effective date of this Section who is dependent upon the member
26to the extent that the member may claim such person as a

 

 

SB3073- 6 -LRB100 16948 RPS 32093 b

1dependent for income tax deduction purposes and (2) any person
2who has received after June 30, 2000 an organ transplant and
3who is financially dependent upon the member and eligible to be
4claimed as a dependent for income tax purposes. A member
5requesting to cover any dependent must provide documentation as
6requested by the Department of Central Management Services and
7file with the Department any and all forms required by the
8Department.
9    (i) "Director" means the Director of the Illinois
10Department of Central Management Services.
11    (j) "Eligibility period" means the period of time a member
12has to elect enrollment in programs or to select benefits
13without regard to age, sex or health.
14    (k) "Employee" means and includes each officer or employee
15in the service of a department who (1) receives his
16compensation for service rendered to the department on a
17warrant issued pursuant to a payroll certified by a department
18or on a warrant or check issued and drawn by a department upon
19a trust, federal or other fund or on a warrant issued pursuant
20to a payroll certified by an elected or duly appointed officer
21of the State or who receives payment of the performance of
22personal services on a warrant issued pursuant to a payroll
23certified by a Department and drawn by the Comptroller upon the
24State Treasurer against appropriations made by the General
25Assembly from any fund or against trust funds held by the State
26Treasurer, and (2) is employed full-time or part-time in a

 

 

SB3073- 7 -LRB100 16948 RPS 32093 b

1position normally requiring actual performance of duty during
2not less than 1/2 of a normal work period, as established by
3the Director in cooperation with each department, except that
4persons elected by popular vote will be considered employees
5during the entire term for which they are elected regardless of
6hours devoted to the service of the State, and (3) except that
7"employee" does not include any person who is not eligible by
8reason of such person's employment to participate in one of the
9State retirement systems under Articles 2, 14, 15 (either the
10regular Article 15 system or the optional retirement program
11established under Section 15-158.2) or 18, or under paragraph
12(2), (3), or (5) of Section 16-106, of the Illinois Pension
13Code, but such term does include persons who are employed
14during the 6 month qualifying period under Article 14 of the
15Illinois Pension Code. Such term also includes any person who
16(1) after January 1, 1966, is receiving ordinary or accidental
17disability benefits under Articles 2, 14, 15 (including
18ordinary or accidental disability benefits under the optional
19retirement program established under Section 15-158.2),
20paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
21the Illinois Pension Code, for disability incurred after
22January 1, 1966, (2) receives total permanent or total
23temporary disability under the Workers' Compensation Act or
24Occupational Disease Act as a result of injuries sustained or
25illness contracted in the course of employment with the State
26of Illinois, or (3) is not otherwise covered under this Act and

 

 

SB3073- 8 -LRB100 16948 RPS 32093 b

1has retired as a participating member under Article 2 of the
2Illinois Pension Code but is ineligible for the retirement
3annuity under Section 2-119 of the Illinois Pension Code.
4However, a person who satisfies the criteria of the foregoing
5definition of "employee" except that such person is made
6ineligible to participate in the State Universities Retirement
7System by clause (4) of subsection (a) of Section 15-107 of the
8Illinois Pension Code is also an "employee" for the purposes of
9this Act. "Employee" also includes any person receiving or
10eligible for benefits under a sick pay plan established in
11accordance with Section 36 of the State Finance Act. "Employee"
12also includes (i) each officer or employee in the service of a
13qualified local government, including persons appointed as
14trustees of sanitary districts regardless of hours devoted to
15the service of the sanitary district, (ii) each employee in the
16service of a qualified rehabilitation facility, (iii) each
17full-time employee in the service of a qualified domestic
18violence shelter or service, and (iv) each full-time employee
19in the service of a qualified child advocacy center, as
20determined according to rules promulgated by the Director.
21    (l) "Member" means an employee, annuitant, retired
22employee or survivor. In the case of an annuitant or retired
23employee who first becomes an annuitant or retired employee on
24or after the effective date of this amendatory Act of the 97th
25General Assembly, the individual must meet the minimum vesting
26requirements of the applicable retirement system in order to be

 

 

SB3073- 9 -LRB100 16948 RPS 32093 b

1eligible for group insurance benefits under that system. In the
2case of a survivor who first becomes a survivor on or after the
3effective date of this amendatory Act of the 97th General
4Assembly, the deceased employee, annuitant, or retired
5employee upon whom the annuity is based must have been eligible
6to participate in the group insurance system under the
7applicable retirement system in order for the survivor to be
8eligible for group insurance benefits under that system.
9    (m) "Optional coverages or benefits" means those coverages
10or benefits available to the member on his or her voluntary
11election, and at his or her own expense.
12    (n) "Program" means the group life insurance, health
13benefits and other employee benefits designed and contracted
14for by the Director under this Act.
15    (o) "Health plan" means a health benefits program offered
16by the State of Illinois for persons eligible for the plan.
17    (p) "Retired employee" means any person who would be an
18annuitant as that term is defined herein but for the fact that
19such person retired prior to January 1, 1966. Such term also
20includes any person formerly employed by the University of
21Illinois in the Cooperative Extension Service who would be an
22annuitant but for the fact that such person was made ineligible
23to participate in the State Universities Retirement System by
24clause (4) of subsection (a) of Section 15-107 of the Illinois
25Pension Code.
26    (q) "Survivor" means a person receiving an annuity as a

 

 

SB3073- 10 -LRB100 16948 RPS 32093 b

1survivor of an employee or of an annuitant. "Survivor" also
2includes: (1) the surviving dependent of a person who satisfies
3the definition of "employee" except that such person is made
4ineligible to participate in the State Universities Retirement
5System by clause (4) of subsection (a) of Section 15-107 of the
6Illinois Pension Code; (2) the surviving dependent of any
7person formerly employed by the University of Illinois in the
8Cooperative Extension Service who would be an annuitant except
9for the fact that such person was made ineligible to
10participate in the State Universities Retirement System by
11clause (4) of subsection (a) of Section 15-107 of the Illinois
12Pension Code; and (3) the surviving dependent of a person who
13was an annuitant under this Act by virtue of receiving an
14alternative retirement cancellation payment under Section
1514-108.5 of the Illinois Pension Code.
16    (q-2) "SERS" means the State Employees' Retirement System
17of Illinois, created under Article 14 of the Illinois Pension
18Code.
19    (q-3) "SURS" means the State Universities Retirement
20System, created under Article 15 of the Illinois Pension Code.
21    (q-4) "TRS" means the Teachers' Retirement System of the
22State of Illinois, created under Article 16 of the Illinois
23Pension Code.
24    (q-5) (Blank).
25    (q-6) (Blank).
26    (q-7) (Blank).

 

 

SB3073- 11 -LRB100 16948 RPS 32093 b

1    (r) "Medical services" means the services provided within
2the scope of their licenses by practitioners in all categories
3licensed under the Medical Practice Act of 1987.
4    (s) "Unit of local government" means any county,
5municipality, township, school district (including a
6combination of school districts under the Intergovernmental
7Cooperation Act), special district or other unit, designated as
8a unit of local government by law, which exercises limited
9governmental powers or powers in respect to limited
10governmental subjects, any not-for-profit association with a
11membership that primarily includes townships and township
12officials, that has duties that include provision of research
13service, dissemination of information, and other acts for the
14purpose of improving township government, and that is funded
15wholly or partly in accordance with Section 85-15 of the
16Township Code; any not-for-profit corporation or association,
17with a membership consisting primarily of municipalities, that
18operates its own utility system, and provides research,
19training, dissemination of information, or other acts to
20promote cooperation between and among municipalities that
21provide utility services and for the advancement of the goals
22and purposes of its membership; the Southern Illinois
23Collegiate Common Market, which is a consortium of higher
24education institutions in Southern Illinois; the Illinois
25Association of Park Districts; and any hospital provider that
26is owned by a county that has 100 or fewer hospital beds and

 

 

SB3073- 12 -LRB100 16948 RPS 32093 b

1has not already joined the program. "Qualified local
2government" means a unit of local government approved by the
3Director and participating in a program created under
4subsection (i) of Section 10 of this Act.
5    (t) "Qualified rehabilitation facility" means any
6not-for-profit organization that is accredited by the
7Commission on Accreditation of Rehabilitation Facilities or
8certified by the Department of Human Services (as successor to
9the Department of Mental Health and Developmental
10Disabilities) to provide services to persons with disabilities
11and which receives funds from the State of Illinois for
12providing those services, approved by the Director and
13participating in a program created under subsection (j) of
14Section 10 of this Act.
15    (u) "Qualified domestic violence shelter or service" means
16any Illinois domestic violence shelter or service and its
17administrative offices funded by the Department of Human
18Services (as successor to the Illinois Department of Public
19Aid), approved by the Director and participating in a program
20created under subsection (k) of Section 10.
21    (v) "TRS benefit recipient" means a person who:
22        (1) is not a "member" as defined in this Section; and
23        (2) is receiving a monthly benefit or retirement
24    annuity under Article 16 of the Illinois Pension Code; and
25        (3) either (i) has at least 8 years of creditable
26    service under Article 16 of the Illinois Pension Code, or

 

 

SB3073- 13 -LRB100 16948 RPS 32093 b

1    (ii) was enrolled in the health insurance program offered
2    under that Article on January 1, 1996, or (iii) is the
3    survivor of a benefit recipient who had at least 8 years of
4    creditable service under Article 16 of the Illinois Pension
5    Code or was enrolled in the health insurance program
6    offered under that Article on the effective date of this
7    amendatory Act of 1995, or (iv) is a recipient or survivor
8    of a recipient of a disability benefit under Article 16 of
9    the Illinois Pension Code.
10    (w) "TRS dependent beneficiary" means a person who:
11        (1) is not a "member" or "dependent" as defined in this
12    Section; and
13        (2) is a TRS benefit recipient's: (A) spouse, (B)
14    dependent parent who is receiving at least half of his or
15    her support from the TRS benefit recipient, or (C) natural,
16    step, adjudicated, or adopted child who is (i) under age
17    26, (ii) was, on January 1, 1996, participating as a
18    dependent beneficiary in the health insurance program
19    offered under Article 16 of the Illinois Pension Code, or
20    (iii) age 19 or over who has a mental or physical
21    disability from a cause originating prior to the age of 19
22    (age 26 if enrolled as an adult child).
23    "TRS dependent beneficiary" does not include, as indicated
24under paragraph (2) of this subsection (w), a dependent of the
25survivor of a TRS benefit recipient who first becomes a
26dependent of a survivor of a TRS benefit recipient on or after

 

 

SB3073- 14 -LRB100 16948 RPS 32093 b

1the effective date of this amendatory Act of the 97th General
2Assembly unless that dependent would have been eligible for
3coverage as a dependent of the deceased TRS benefit recipient
4upon whom the survivor benefit is based.
5    (x) "Military leave" refers to individuals in basic
6training for reserves, special/advanced training, annual
7training, emergency call up, activation by the President of the
8United States, or any other training or duty in service to the
9United States Armed Forces.
10    (y) (Blank).
11    (z) "Community college benefit recipient" means a person
12who:
13        (1) is not a "member" as defined in this Section; and
14        (2) is receiving a monthly survivor's annuity or
15    retirement annuity under Article 15 of the Illinois Pension
16    Code; and
17        (3) either (i) was a full-time employee of a community
18    college district or an association of community college
19    boards created under the Public Community College Act
20    (other than an employee whose last employer under Article
21    15 of the Illinois Pension Code was a community college
22    district subject to Article VII of the Public Community
23    College Act) and was eligible to participate in a group
24    health benefit plan as an employee during the time of
25    employment with a community college district (other than a
26    community college district subject to Article VII of the

 

 

SB3073- 15 -LRB100 16948 RPS 32093 b

1    Public Community College Act) or an association of
2    community college boards, or (ii) is the survivor of a
3    person described in item (i).
4    (aa) "Community college dependent beneficiary" means a
5person who:
6        (1) is not a "member" or "dependent" as defined in this
7    Section; and
8        (2) is a community college benefit recipient's: (A)
9    spouse, (B) dependent parent who is receiving at least half
10    of his or her support from the community college benefit
11    recipient, or (C) natural, step, adjudicated, or adopted
12    child who is (i) under age 26, or (ii) age 19 or over and
13    has a mental or physical disability from a cause
14    originating prior to the age of 19 (age 26 if enrolled as
15    an adult child).
16    "Community college dependent beneficiary" does not
17include, as indicated under paragraph (2) of this subsection
18(aa), a dependent of the survivor of a community college
19benefit recipient who first becomes a dependent of a survivor
20of a community college benefit recipient on or after the
21effective date of this amendatory Act of the 97th General
22Assembly unless that dependent would have been eligible for
23coverage as a dependent of the deceased community college
24benefit recipient upon whom the survivor annuity is based.
25    (bb) "Qualified child advocacy center" means any Illinois
26child advocacy center and its administrative offices funded by

 

 

SB3073- 16 -LRB100 16948 RPS 32093 b

1the Department of Children and Family Services, as defined by
2the Children's Advocacy Center Act (55 ILCS 80/), approved by
3the Director and participating in a program created under
4subsection (n) of Section 10.
5    (cc) "Placement for adoption" means the assumption and
6retention by a member of a legal obligation for total or
7partial support of a child in anticipation of adoption of the
8child. The child's placement with the member terminates upon
9the termination of such legal obligation.
10(Source: P.A. 99-143, eff. 7-27-15; 100-355, eff. 1-1-18.)
 
11    (5 ILCS 375/10)  (from Ch. 127, par. 530)
12    Sec. 10. Contributions by the State and members.
13    (a) The State shall pay the cost of basic non-contributory
14group life insurance and, subject to member paid contributions
15set by the Department or required by this Section and except as
16provided in this Section, the basic program of group health
17benefits on each eligible member, except a member, not
18otherwise covered by this Act, who has retired as a
19participating member under Article 2 of the Illinois Pension
20Code but is ineligible for the retirement annuity under Section
212-119 of the Illinois Pension Code, and part of each eligible
22member's and retired member's premiums for health insurance
23coverage for enrolled dependents as provided by Section 9. The
24State shall pay the cost of the basic program of group health
25benefits only after benefits are reduced by the amount of

 

 

SB3073- 17 -LRB100 16948 RPS 32093 b

1benefits covered by Medicare for all members and dependents who
2are eligible for benefits under Social Security or the Railroad
3Retirement system or who had sufficient Medicare-covered
4government employment, except that such reduction in benefits
5shall apply only to those members and dependents who (1) first
6become eligible for such Medicare coverage on or after July 1,
71992; or (2) are Medicare-eligible members or dependents of a
8local government unit which began participation in the program
9on or after July 1, 1992; or (3) remain eligible for, but no
10longer receive Medicare coverage which they had been receiving
11on or after July 1, 1992. The Department may determine the
12aggregate level of the State's contribution on the basis of
13actual cost of medical services adjusted for age, sex or
14geographic or other demographic characteristics which affect
15the costs of such programs.
16    The cost of participation in the basic program of group
17health benefits for the dependent or survivor of a living or
18deceased retired employee who was formerly employed by the
19University of Illinois in the Cooperative Extension Service and
20would be an annuitant but for the fact that he or she was made
21ineligible to participate in the State Universities Retirement
22System by clause (4) of subsection (a) of Section 15-107 of the
23Illinois Pension Code shall not be greater than the cost of
24participation that would otherwise apply to that dependent or
25survivor if he or she were the dependent or survivor of an
26annuitant under the State Universities Retirement System.

 

 

SB3073- 18 -LRB100 16948 RPS 32093 b

1    (a-1) (Blank).
2    (a-2) (Blank).
3    (a-3) (Blank).
4    (a-4) (Blank).
5    (a-5) (Blank).
6    (a-6) (Blank).
7    (a-7) (Blank).
8    (a-8) Any annuitant, survivor, or retired employee may
9waive or terminate coverage in the program of group health
10benefits. Any such annuitant, survivor, or retired employee who
11has waived or terminated coverage may enroll or re-enroll in
12the program of group health benefits only during the annual
13benefit choice period, as determined by the Director; except
14that in the event of termination of coverage due to nonpayment
15of premiums, the annuitant, survivor, or retired employee may
16not re-enroll in the program.
17    (a-8.5) Beginning on the effective date of this amendatory
18Act of the 97th General Assembly, the Director of Central
19Management Services shall, on an annual basis, determine the
20amount that the State shall contribute toward the basic program
21of group health benefits on behalf of annuitants (including
22individuals who (i) participated in the General Assembly
23Retirement System, the State Employees' Retirement System of
24Illinois, the State Universities Retirement System, the
25Teachers' Retirement System of the State of Illinois, or the
26Judges Retirement System of Illinois and (ii) qualify as

 

 

SB3073- 19 -LRB100 16948 RPS 32093 b

1annuitants under subsection (b) of Section 3 of this Act),
2survivors (including individuals who (i) receive an annuity as
3a survivor of an individual who participated in the General
4Assembly Retirement System, the State Employees' Retirement
5System of Illinois, the State Universities Retirement System,
6the Teachers' Retirement System of the State of Illinois, or
7the Judges Retirement System of Illinois and (ii) qualify as
8survivors under subsection (q) of Section 3 of this Act), and
9retired employees (as defined in subsection (p) of Section 3 of
10this Act). The remainder of the cost of coverage for each
11annuitant, survivor, or retired employee, as determined by the
12Director of Central Management Services, shall be the
13responsibility of that annuitant, survivor, or retired
14employee.
15    Contributions required of annuitants, survivors, and
16retired employees shall be the same for all retirement systems
17and shall also be based on whether an individual has made an
18election under Section 15-135.1 of the Illinois Pension Code.
19Contributions may be based on annuitants', survivors', or
20retired employees' Medicare eligibility, but may not be based
21on Social Security eligibility.
22    (a-9) No later than May 1 of each calendar year, the
23Director of Central Management Services shall certify in
24writing to the Executive Secretary of the State Employees'
25Retirement System of Illinois the amounts of the Medicare
26supplement health care premiums and the amounts of the health

 

 

SB3073- 20 -LRB100 16948 RPS 32093 b

1care premiums for all other retirees who are not Medicare
2eligible.
3    A separate calculation of the premiums based upon the
4actual cost of each health care plan shall be so certified.
5    The Director of Central Management Services shall provide
6to the Executive Secretary of the State Employees' Retirement
7System of Illinois such information, statistics, and other data
8as he or she may require to review the premium amounts
9certified by the Director of Central Management Services.
10    The Department of Central Management Services, or any
11successor agency designated to procure healthcare contracts
12pursuant to this Act, is authorized to establish funds,
13separate accounts provided by any bank or banks as defined by
14the Illinois Banking Act, or separate accounts provided by any
15savings and loan association or associations as defined by the
16Illinois Savings and Loan Act of 1985 to be held by the
17Director, outside the State treasury, for the purpose of
18receiving the transfer of moneys from the Local Government
19Health Insurance Reserve Fund. The Department may promulgate
20rules further defining the methodology for the transfers. Any
21interest earned by moneys in the funds or accounts shall inure
22to the Local Government Health Insurance Reserve Fund. The
23transferred moneys, and interest accrued thereon, shall be used
24exclusively for transfers to administrative service
25organizations or their financial institutions for payments of
26claims to claimants and providers under the self-insurance

 

 

SB3073- 21 -LRB100 16948 RPS 32093 b

1health plan. The transferred moneys, and interest accrued
2thereon, shall not be used for any other purpose including, but
3not limited to, reimbursement of administration fees due the
4administrative service organization pursuant to its contract
5or contracts with the Department.
6    (a-10) To the extent that participation, benefits, or
7premiums under this Act are based on a person's service credit
8under an Article of the Illinois Pension Code, service credit
9terminated in exchange for an accelerated pension benefit
10payment under Section 14-147.5, 15-185.5, or 16-190.5 of that
11Code shall be included in determining a person's service credit
12for the purposes of this Act.
13    (b) State employees who become eligible for this program on
14or after January 1, 1980 in positions normally requiring actual
15performance of duty not less than 1/2 of a normal work period
16but not equal to that of a normal work period, shall be given
17the option of participating in the available program. If the
18employee elects coverage, the State shall contribute on behalf
19of such employee to the cost of the employee's benefit and any
20applicable dependent supplement, that sum which bears the same
21percentage as that percentage of time the employee regularly
22works when compared to normal work period.
23    (c) The basic non-contributory coverage from the basic
24program of group health benefits shall be continued for each
25employee not in pay status or on active service by reason of
26(1) leave of absence due to illness or injury, (2) authorized

 

 

SB3073- 22 -LRB100 16948 RPS 32093 b

1educational leave of absence or sabbatical leave, or (3)
2military leave. This coverage shall continue until expiration
3of authorized leave and return to active service, but not to
4exceed 24 months for leaves under item (1) or (2). This
524-month limitation and the requirement of returning to active
6service shall not apply to persons receiving ordinary or
7accidental disability benefits or retirement benefits through
8the appropriate State retirement system or benefits under the
9Workers' Compensation or Occupational Disease Act.
10    (d) The basic group life insurance coverage shall continue,
11with full State contribution, where such person is (1) absent
12from active service by reason of disability arising from any
13cause other than self-inflicted, (2) on authorized educational
14leave of absence or sabbatical leave, or (3) on military leave.
15    (e) Where the person is in non-pay status for a period in
16excess of 30 days or on leave of absence, other than by reason
17of disability, educational or sabbatical leave, or military
18leave, such person may continue coverage only by making
19personal payment equal to the amount normally contributed by
20the State on such person's behalf. Such payments and coverage
21may be continued: (1) until such time as the person returns to
22a status eligible for coverage at State expense, but not to
23exceed 24 months or (2) until such person's employment or
24annuitant status with the State is terminated (exclusive of any
25additional service imposed pursuant to law).
26    (f) The Department shall establish by rule the extent to

 

 

SB3073- 23 -LRB100 16948 RPS 32093 b

1which other employee benefits will continue for persons in
2non-pay status or who are not in active service.
3    (g) The State shall not pay the cost of the basic
4non-contributory group life insurance, program of health
5benefits and other employee benefits for members who are
6survivors as defined by paragraphs (1) and (2) of subsection
7(q) of Section 3 of this Act. The costs of benefits for these
8survivors shall be paid by the survivors or by the University
9of Illinois Cooperative Extension Service, or any combination
10thereof. However, the State shall pay the amount of the
11reduction in the cost of participation, if any, resulting from
12the amendment to subsection (a) made by this amendatory Act of
13the 91st General Assembly.
14    (h) Those persons occupying positions with any department
15as a result of emergency appointments pursuant to Section 8b.8
16of the Personnel Code who are not considered employees under
17this Act shall be given the option of participating in the
18programs of group life insurance, health benefits and other
19employee benefits. Such persons electing coverage may
20participate only by making payment equal to the amount normally
21contributed by the State for similarly situated employees. Such
22amounts shall be determined by the Director. Such payments and
23coverage may be continued until such time as the person becomes
24an employee pursuant to this Act or such person's appointment
25is terminated.
26    (i) Any unit of local government within the State of

 

 

SB3073- 24 -LRB100 16948 RPS 32093 b

1Illinois may apply to the Director to have its employees,
2annuitants, and their dependents provided group health
3coverage under this Act on a non-insured basis. To participate,
4a unit of local government must agree to enroll all of its
5employees, who may select coverage under either the State group
6health benefits plan or a health maintenance organization that
7has contracted with the State to be available as a health care
8provider for employees as defined in this Act. A unit of local
9government must remit the entire cost of providing coverage
10under the State group health benefits plan or, for coverage
11under a health maintenance organization, an amount determined
12by the Director based on an analysis of the sex, age,
13geographic location, or other relevant demographic variables
14for its employees, except that the unit of local government
15shall not be required to enroll those of its employees who are
16covered spouses or dependents under this plan or another group
17policy or plan providing health benefits as long as (1) an
18appropriate official from the unit of local government attests
19that each employee not enrolled is a covered spouse or
20dependent under this plan or another group policy or plan, and
21(2) at least 50% of the employees are enrolled and the unit of
22local government remits the entire cost of providing coverage
23to those employees, except that a participating school district
24must have enrolled at least 50% of its full-time employees who
25have not waived coverage under the district's group health plan
26by participating in a component of the district's cafeteria

 

 

SB3073- 25 -LRB100 16948 RPS 32093 b

1plan. A participating school district is not required to enroll
2a full-time employee who has waived coverage under the
3district's health plan, provided that an appropriate official
4from the participating school district attests that the
5full-time employee has waived coverage by participating in a
6component of the district's cafeteria plan. For the purposes of
7this subsection, "participating school district" includes a
8unit of local government whose primary purpose is education as
9defined by the Department's rules.
10    Employees of a participating unit of local government who
11are not enrolled due to coverage under another group health
12policy or plan may enroll in the event of a qualifying change
13in status, special enrollment, special circumstance as defined
14by the Director, or during the annual Benefit Choice Period. A
15participating unit of local government may also elect to cover
16its annuitants. Dependent coverage shall be offered on an
17optional basis, with the costs paid by the unit of local
18government, its employees, or some combination of the two as
19determined by the unit of local government. The unit of local
20government shall be responsible for timely collection and
21transmission of dependent premiums.
22    The Director shall annually determine monthly rates of
23payment, subject to the following constraints:
24        (1) In the first year of coverage, the rates shall be
25    equal to the amount normally charged to State employees for
26    elected optional coverages or for enrolled dependents

 

 

SB3073- 26 -LRB100 16948 RPS 32093 b

1    coverages or other contributory coverages, or contributed
2    by the State for basic insurance coverages on behalf of its
3    employees, adjusted for differences between State
4    employees and employees of the local government in age,
5    sex, geographic location or other relevant demographic
6    variables, plus an amount sufficient to pay for the
7    additional administrative costs of providing coverage to
8    employees of the unit of local government and their
9    dependents.
10        (2) In subsequent years, a further adjustment shall be
11    made to reflect the actual prior years' claims experience
12    of the employees of the unit of local government.
13    In the case of coverage of local government employees under
14a health maintenance organization, the Director shall annually
15determine for each participating unit of local government the
16maximum monthly amount the unit may contribute toward that
17coverage, based on an analysis of (i) the age, sex, geographic
18location, and other relevant demographic variables of the
19unit's employees and (ii) the cost to cover those employees
20under the State group health benefits plan. The Director may
21similarly determine the maximum monthly amount each unit of
22local government may contribute toward coverage of its
23employees' dependents under a health maintenance organization.
24    Monthly payments by the unit of local government or its
25employees for group health benefits plan or health maintenance
26organization coverage shall be deposited in the Local

 

 

SB3073- 27 -LRB100 16948 RPS 32093 b

1Government Health Insurance Reserve Fund.
2    The Local Government Health Insurance Reserve Fund is
3hereby created as a nonappropriated trust fund to be held
4outside the State Treasury, with the State Treasurer as
5custodian. The Local Government Health Insurance Reserve Fund
6shall be a continuing fund not subject to fiscal year
7limitations. The Local Government Health Insurance Reserve
8Fund is not subject to administrative charges or charge-backs,
9including but not limited to those authorized under Section 8h
10of the State Finance Act. All revenues arising from the
11administration of the health benefits program established
12under this Section shall be deposited into the Local Government
13Health Insurance Reserve Fund. Any interest earned on moneys in
14the Local Government Health Insurance Reserve Fund shall be
15deposited into the Fund. All expenditures from this Fund shall
16be used for payments for health care benefits for local
17government and rehabilitation facility employees, annuitants,
18and dependents, and to reimburse the Department or its
19administrative service organization for all expenses incurred
20in the administration of benefits. No other State funds may be
21used for these purposes.
22    A local government employer's participation or desire to
23participate in a program created under this subsection shall
24not limit that employer's duty to bargain with the
25representative of any collective bargaining unit of its
26employees.

 

 

SB3073- 28 -LRB100 16948 RPS 32093 b

1    (j) Any rehabilitation facility within the State of
2Illinois may apply to the Director to have its employees,
3annuitants, and their eligible dependents provided group
4health coverage under this Act on a non-insured basis. To
5participate, a rehabilitation facility must agree to enroll all
6of its employees and remit the entire cost of providing such
7coverage for its employees, except that the rehabilitation
8facility shall not be required to enroll those of its employees
9who are covered spouses or dependents under this plan or
10another group policy or plan providing health benefits as long
11as (1) an appropriate official from the rehabilitation facility
12attests that each employee not enrolled is a covered spouse or
13dependent under this plan or another group policy or plan, and
14(2) at least 50% of the employees are enrolled and the
15rehabilitation facility remits the entire cost of providing
16coverage to those employees. Employees of a participating
17rehabilitation facility who are not enrolled due to coverage
18under another group health policy or plan may enroll in the
19event of a qualifying change in status, special enrollment,
20special circumstance as defined by the Director, or during the
21annual Benefit Choice Period. A participating rehabilitation
22facility may also elect to cover its annuitants. Dependent
23coverage shall be offered on an optional basis, with the costs
24paid by the rehabilitation facility, its employees, or some
25combination of the 2 as determined by the rehabilitation
26facility. The rehabilitation facility shall be responsible for

 

 

SB3073- 29 -LRB100 16948 RPS 32093 b

1timely collection and transmission of dependent premiums.
2    The Director shall annually determine quarterly rates of
3payment, subject to the following constraints:
4        (1) In the first year of coverage, the rates shall be
5    equal to the amount normally charged to State employees for
6    elected optional coverages or for enrolled dependents
7    coverages or other contributory coverages on behalf of its
8    employees, adjusted for differences between State
9    employees and employees of the rehabilitation facility in
10    age, sex, geographic location or other relevant
11    demographic variables, plus an amount sufficient to pay for
12    the additional administrative costs of providing coverage
13    to employees of the rehabilitation facility and their
14    dependents.
15        (2) In subsequent years, a further adjustment shall be
16    made to reflect the actual prior years' claims experience
17    of the employees of the rehabilitation facility.
18    Monthly payments by the rehabilitation facility or its
19employees for group health benefits shall be deposited in the
20Local Government Health Insurance Reserve Fund.
21    (k) Any domestic violence shelter or service within the
22State of Illinois may apply to the Director to have its
23employees, annuitants, and their dependents provided group
24health coverage under this Act on a non-insured basis. To
25participate, a domestic violence shelter or service must agree
26to enroll all of its employees and pay the entire cost of

 

 

SB3073- 30 -LRB100 16948 RPS 32093 b

1providing such coverage for its employees. The domestic
2violence shelter shall not be required to enroll those of its
3employees who are covered spouses or dependents under this plan
4or another group policy or plan providing health benefits as
5long as (1) an appropriate official from the domestic violence
6shelter attests that each employee not enrolled is a covered
7spouse or dependent under this plan or another group policy or
8plan and (2) at least 50% of the employees are enrolled and the
9domestic violence shelter remits the entire cost of providing
10coverage to those employees. Employees of a participating
11domestic violence shelter who are not enrolled due to coverage
12under another group health policy or plan may enroll in the
13event of a qualifying change in status, special enrollment, or
14special circumstance as defined by the Director or during the
15annual Benefit Choice Period. A participating domestic
16violence shelter may also elect to cover its annuitants.
17Dependent coverage shall be offered on an optional basis, with
18employees, or some combination of the 2 as determined by the
19domestic violence shelter or service. The domestic violence
20shelter or service shall be responsible for timely collection
21and transmission of dependent premiums.
22    The Director shall annually determine rates of payment,
23subject to the following constraints:
24        (1) In the first year of coverage, the rates shall be
25    equal to the amount normally charged to State employees for
26    elected optional coverages or for enrolled dependents

 

 

SB3073- 31 -LRB100 16948 RPS 32093 b

1    coverages or other contributory coverages on behalf of its
2    employees, adjusted for differences between State
3    employees and employees of the domestic violence shelter or
4    service in age, sex, geographic location or other relevant
5    demographic variables, plus an amount sufficient to pay for
6    the additional administrative costs of providing coverage
7    to employees of the domestic violence shelter or service
8    and their dependents.
9        (2) In subsequent years, a further adjustment shall be
10    made to reflect the actual prior years' claims experience
11    of the employees of the domestic violence shelter or
12    service.
13    Monthly payments by the domestic violence shelter or
14service or its employees for group health insurance shall be
15deposited in the Local Government Health Insurance Reserve
16Fund.
17    (l) A public community college or entity organized pursuant
18to the Public Community College Act may apply to the Director
19initially to have only annuitants not covered prior to July 1,
201992 by the district's health plan provided health coverage
21under this Act on a non-insured basis. The community college
22must execute a 2-year contract to participate in the Local
23Government Health Plan. Any annuitant may enroll in the event
24of a qualifying change in status, special enrollment, special
25circumstance as defined by the Director, or during the annual
26Benefit Choice Period.

 

 

SB3073- 32 -LRB100 16948 RPS 32093 b

1    The Director shall annually determine monthly rates of
2payment subject to the following constraints: for those
3community colleges with annuitants only enrolled, first year
4rates shall be equal to the average cost to cover claims for a
5State member adjusted for demographics, Medicare
6participation, and other factors; and in the second year, a
7further adjustment of rates shall be made to reflect the actual
8first year's claims experience of the covered annuitants.
9    (l-5) The provisions of subsection (l) become inoperative
10on July 1, 1999.
11    (m) The Director shall adopt any rules deemed necessary for
12implementation of this amendatory Act of 1989 (Public Act
1386-978).
14    (n) Any child advocacy center within the State of Illinois
15may apply to the Director to have its employees, annuitants,
16and their dependents provided group health coverage under this
17Act on a non-insured basis. To participate, a child advocacy
18center must agree to enroll all of its employees and pay the
19entire cost of providing coverage for its employees. The child
20advocacy center shall not be required to enroll those of its
21employees who are covered spouses or dependents under this plan
22or another group policy or plan providing health benefits as
23long as (1) an appropriate official from the child advocacy
24center attests that each employee not enrolled is a covered
25spouse or dependent under this plan or another group policy or
26plan and (2) at least 50% of the employees are enrolled and the

 

 

SB3073- 33 -LRB100 16948 RPS 32093 b

1child advocacy center remits the entire cost of providing
2coverage to those employees. Employees of a participating child
3advocacy center who are not enrolled due to coverage under
4another group health policy or plan may enroll in the event of
5a qualifying change in status, special enrollment, or special
6circumstance as defined by the Director or during the annual
7Benefit Choice Period. A participating child advocacy center
8may also elect to cover its annuitants. Dependent coverage
9shall be offered on an optional basis, with the costs paid by
10the child advocacy center, its employees, or some combination
11of the 2 as determined by the child advocacy center. The child
12advocacy center shall be responsible for timely collection and
13transmission of dependent premiums.
14    The Director shall annually determine rates of payment,
15subject to the following constraints:
16        (1) In the first year of coverage, the rates shall be
17    equal to the amount normally charged to State employees for
18    elected optional coverages or for enrolled dependents
19    coverages or other contributory coverages on behalf of its
20    employees, adjusted for differences between State
21    employees and employees of the child advocacy center in
22    age, sex, geographic location, or other relevant
23    demographic variables, plus an amount sufficient to pay for
24    the additional administrative costs of providing coverage
25    to employees of the child advocacy center and their
26    dependents.

 

 

SB3073- 34 -LRB100 16948 RPS 32093 b

1        (2) In subsequent years, a further adjustment shall be
2    made to reflect the actual prior years' claims experience
3    of the employees of the child advocacy center.
4    Monthly payments by the child advocacy center or its
5employees for group health insurance shall be deposited into
6the Local Government Health Insurance Reserve Fund.
7(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
 
8    Section 10. The Illinois Finance Authority Act is amended
9by changing Section 801-40 as follows:
 
10    (20 ILCS 3501/801-40)
11    Sec. 801-40. In addition to the powers otherwise authorized
12by law and in addition to the foregoing general corporate
13powers, the Authority shall also have the following additional
14specific powers to be exercised in furtherance of the purposes
15of this Act.
16    (a) The Authority shall have power (i) to accept grants,
17loans or appropriations from the federal government or the
18State, or any agency or instrumentality thereof, to be used for
19the operating expenses of the Authority, or for any purposes of
20the Authority, including the making of direct loans of such
21funds with respect to projects, and (ii) to enter into any
22agreement with the federal government or the State, or any
23agency or instrumentality thereof, in relationship to such
24grants, loans or appropriations.

 

 

SB3073- 35 -LRB100 16948 RPS 32093 b

1    (b) The Authority shall have power to procure and enter
2into contracts for any type of insurance and indemnity
3agreements covering loss or damage to property from any cause,
4including loss of use and occupancy, or covering any other
5insurable risk.
6    (c) The Authority shall have the continuing power to issue
7bonds for its corporate purposes. Bonds may be issued by the
8Authority in one or more series and may provide for the payment
9of any interest deemed necessary on such bonds, of the costs of
10issuance of such bonds, of any premium on any insurance, or of
11the cost of any guarantees, letters of credit or other similar
12documents, may provide for the funding of the reserves deemed
13necessary in connection with such bonds, and may provide for
14the refunding or advance refunding of any bonds or for accounts
15deemed necessary in connection with any purpose of the
16Authority. The bonds may bear interest payable at any time or
17times and at any rate or rates, notwithstanding any other
18provision of law to the contrary, and such rate or rates may be
19established by an index or formula which may be implemented or
20established by persons appointed or retained therefor by the
21Authority, or may bear no interest or may bear interest payable
22at maturity or upon redemption prior to maturity, may bear such
23date or dates, may be payable at such time or times and at such
24place or places, may mature at any time or times not later than
2540 years from the date of issuance, may be sold at public or
26private sale at such time or times and at such price or prices,

 

 

SB3073- 36 -LRB100 16948 RPS 32093 b

1may be secured by such pledges, reserves, guarantees, letters
2of credit, insurance contracts or other similar credit support
3or liquidity instruments, may be executed in such manner, may
4be subject to redemption prior to maturity, may provide for the
5registration of the bonds, and may be subject to such other
6terms and conditions all as may be provided by the resolution
7or indenture authorizing the issuance of such bonds. The holder
8or holders of any bonds issued by the Authority may bring suits
9at law or proceedings in equity to compel the performance and
10observance by any person or by the Authority or any of its
11agents or employees of any contract or covenant made with the
12holders of such bonds and to compel such person or the
13Authority and any of its agents or employees to perform any
14duties required to be performed for the benefit of the holders
15of any such bonds by the provision of the resolution
16authorizing their issuance, and to enjoin such person or the
17Authority and any of its agents or employees from taking any
18action in conflict with any such contract or covenant.
19Notwithstanding the form and tenor of any such bonds and in the
20absence of any express recital on the face thereof that it is
21non-negotiable, all such bonds shall be negotiable
22instruments. Pending the preparation and execution of any such
23bonds, temporary bonds may be issued as provided by the
24resolution. The bonds shall be sold by the Authority in such
25manner as it shall determine. The bonds may be secured as
26provided in the authorizing resolution by the receipts,

 

 

SB3073- 37 -LRB100 16948 RPS 32093 b

1revenues, income and other available funds of the Authority and
2by any amounts derived by the Authority from the loan agreement
3or lease agreement with respect to the project or projects; and
4bonds may be issued as general obligations of the Authority
5payable from such revenues, funds and obligations of the
6Authority as the bond resolution shall provide, or may be
7issued as limited obligations with a claim for payment solely
8from such revenues, funds and obligations as the bond
9resolution shall provide. The Authority may grant a specific
10pledge or assignment of and lien on or security interest in
11such rights, revenues, income, or amounts and may grant a
12specific pledge or assignment of and lien on or security
13interest in any reserves, funds or accounts established in the
14resolution authorizing the issuance of bonds. Any such pledge,
15assignment, lien or security interest for the benefit of the
16holders of the Authority's bonds shall be valid and binding
17from the time the bonds are issued without any physical
18delivery or further act, and shall be valid and binding as
19against and prior to the claims of all other parties having
20claims against the Authority or any other person irrespective
21of whether the other parties have notice of the pledge,
22assignment, lien or security interest. As evidence of such
23pledge, assignment, lien and security interest, the Authority
24may execute and deliver a mortgage, trust agreement, indenture
25or security agreement or an assignment thereof. A remedy for
26any breach or default of the terms of any such agreement by the

 

 

SB3073- 38 -LRB100 16948 RPS 32093 b

1Authority may be by mandamus proceedings in any court of
2competent jurisdiction to compel the performance and
3compliance therewith, but the agreement may prescribe by whom
4or on whose behalf such action may be instituted. It is
5expressly understood that the Authority may, but need not,
6acquire title to any project with respect to which it exercises
7its authority.
8    (c-5) The Authority shall have the power to issue State
9Pension Obligation Acceleration Bonds if in any fiscal year the
10amount appropriated for all accelerated pension benefit
11payments is less than the amount required for those payments.
12The proceeds from the State Pension Obligation Acceleration
13Bonds issued under this subsection may only be used to pay for
14accelerated pension benefit payments for the fiscal year in
15which the State Pension Obligation Acceleration Bonds are
16issued.
17    The Authority shall not have outstanding at any one time
18State Pension Obligation Acceleration Bonds for any of the
19purposes of this subsection in an aggregate principal amount
20exceeding $250,000,000, excluding bonds issued to refund
21outstanding State Pension Obligation Acceleration Bonds.
22    (d) With respect to the powers granted by this Act, the
23Authority may adopt rules and regulations prescribing the
24procedures by which persons may apply for assistance under this
25Act. Nothing herein shall be deemed to preclude the Authority,
26prior to the filing of any formal application, from conducting

 

 

SB3073- 39 -LRB100 16948 RPS 32093 b

1preliminary discussions and investigations with respect to the
2subject matter of any prospective application.
3    (e) The Authority shall have power to acquire by purchase,
4lease, gift or otherwise any property or rights therein from
5any person useful for its purposes, whether improved for the
6purposes of any prospective project, or unimproved. The
7Authority may also accept any donation of funds for its
8purposes from any such source. The Authority shall have no
9independent power of condemnation but may acquire any property
10or rights therein obtained upon condemnation by any other
11authority, governmental entity or unit of local government with
12such power.
13    (f) The Authority shall have power to develop, construct
14and improve either under its own direction, or through
15collaboration with any approved applicant, or to acquire
16through purchase or otherwise, any project, using for such
17purpose the proceeds derived from the sale of its bonds or from
18governmental loans or grants, and to hold title in the name of
19the Authority to such projects.
20    (g) The Authority shall have power to lease pursuant to a
21lease agreement any project so developed and constructed or
22acquired to the approved tenant on such terms and conditions as
23may be appropriate to further the purposes of this Act and to
24maintain the credit of the Authority. Any such lease may
25provide for either the Authority or the approved tenant to
26assume initially, in whole or in part, the costs of

 

 

SB3073- 40 -LRB100 16948 RPS 32093 b

1maintenance, repair and improvements during the leasehold
2period. In no case, however, shall the total rentals from any
3project during any initial leasehold period or the total loan
4repayments to be made pursuant to any loan agreement, be less
5than an amount necessary to return over such lease or loan
6period (1) all costs incurred in connection with the
7development, construction, acquisition or improvement of the
8project and for repair, maintenance and improvements thereto
9during the period of the lease or loan; provided, however, that
10the rentals or loan repayments need not include costs met
11through the use of funds other than those obtained by the
12Authority through the issuance of its bonds or governmental
13loans; (2) a reasonable percentage additive to be agreed upon
14by the Authority and the borrower or tenant to cover a properly
15allocable portion of the Authority's general expenses,
16including, but not limited to, administrative expenses,
17salaries and general insurance, and (3) an amount sufficient to
18pay when due all principal of, interest and premium, if any on,
19any bonds issued by the Authority with respect to the project.
20The portion of total rentals payable under clause (3) of this
21subsection (g) shall be deposited in such special accounts,
22including all sinking funds, acquisition or construction
23funds, debt service and other funds as provided by any
24resolution, mortgage or trust agreement of the Authority
25pursuant to which any bond is issued.
26    (h) The Authority has the power, upon the termination of

 

 

SB3073- 41 -LRB100 16948 RPS 32093 b

1any leasehold period of any project, to sell or lease for a
2further term or terms such project on such terms and conditions
3as the Authority shall deem reasonable and consistent with the
4purposes of the Act. The net proceeds from all such sales and
5the revenues or income from such leases shall be used to
6satisfy any indebtedness of the Authority with respect to such
7project and any balance may be used to pay any expenses of the
8Authority or be used for the further development, construction,
9acquisition or improvement of projects. In the event any
10project is vacated by a tenant prior to the termination of the
11initial leasehold period, the Authority shall sell or lease the
12facilities of the project on the most advantageous terms
13available. The net proceeds of any such disposition shall be
14treated in the same manner as the proceeds from sales or the
15revenues or income from leases subsequent to the termination of
16any initial leasehold period.
17    (i) The Authority shall have the power to make loans to
18persons to finance a project, to enter into loan agreements
19with respect thereto, and to accept guarantees from persons of
20its loans or the resultant evidences of obligations of the
21Authority.
22    (j) The Authority may fix, determine, charge and collect
23any premiums, fees, charges, costs and expenses, including,
24without limitation, any application fees, commitment fees,
25program fees, financing charges or publication fees from any
26person in connection with its activities under this Act.

 

 

SB3073- 42 -LRB100 16948 RPS 32093 b

1    (k) In addition to the funds established as provided
2herein, the Authority shall have the power to create and
3establish such reserve funds and accounts as may be necessary
4or desirable to accomplish its purposes under this Act and to
5deposit its available monies into the funds and accounts.
6    (l) At the request of the governing body of any unit of
7local government, the Authority is authorized to market such
8local government's revenue bond offerings by preparing bond
9issues for sale, advertising for sealed bids, receiving bids at
10its offices, making the award to the bidder that offers the
11most favorable terms or arranging for negotiated placements or
12underwritings of such securities. The Authority may, at its
13discretion, offer for concurrent sale the revenue bonds of
14several local governments. Sales by the Authority of revenue
15bonds under this Section shall in no way imply State guarantee
16of such debt issue. The Authority may require such financial
17information from participating local governments as it deems
18necessary in order to carry out the purposes of this subsection
19(1).
20    (m) The Authority may make grants to any county to which
21Division 5-37 of the Counties Code is applicable to assist in
22the financing of capital development, construction and
23renovation of new or existing facilities for hospitals and
24health care facilities under that Act. Such grants may only be
25made from funds appropriated for such purposes from the Build
26Illinois Bond Fund.

 

 

SB3073- 43 -LRB100 16948 RPS 32093 b

1    (n) The Authority may establish an urban development action
2grant program for the purpose of assisting municipalities in
3Illinois which are experiencing severe economic distress to
4help stimulate economic development activities needed to aid in
5economic recovery. The Authority shall determine the types of
6activities and projects for which the urban development action
7grants may be used, provided that such projects and activities
8are broadly defined to include all reasonable projects and
9activities the primary objectives of which are the development
10of viable urban communities, including decent housing and a
11suitable living environment, and expansion of economic
12opportunity, principally for persons of low and moderate
13incomes. The Authority shall enter into grant agreements from
14monies appropriated for such purposes from the Build Illinois
15Bond Fund. The Authority shall monitor the use of the grants,
16and shall provide for audits of the funds as well as recovery
17by the Authority of any funds determined to have been spent in
18violation of this subsection (n) or any rule or regulation
19promulgated hereunder. The Authority shall provide technical
20assistance with regard to the effective use of the urban
21development action grants. The Authority shall file an annual
22report to the General Assembly concerning the progress of the
23grant program.
24    (o) The Authority may establish a Housing Partnership
25Program whereby the Authority provides zero-interest loans to
26municipalities for the purpose of assisting in the financing of

 

 

SB3073- 44 -LRB100 16948 RPS 32093 b

1projects for the rehabilitation of affordable multi-family
2housing for low and moderate income residents. The Authority
3may provide such loans only upon a municipality's providing
4evidence that it has obtained private funding for the
5rehabilitation project. The Authority shall provide 3 State
6dollars for every 7 dollars obtained by the municipality from
7sources other than the State of Illinois. The loans shall be
8made from monies appropriated for such purpose from the Build
9Illinois Bond Fund. The total amount of loans available under
10the Housing Partnership Program shall not exceed $30,000,000.
11State loan monies under this subsection shall be used only for
12the acquisition and rehabilitation of existing buildings
13containing 4 or more dwelling units. The terms of any loan made
14by the municipality under this subsection shall require
15repayment of the loan to the municipality upon any sale or
16other transfer of the project.
17    (p) The Authority may award grants to universities and
18research institutions, research consortiums and other
19not-for-profit entities for the purposes of: remodeling or
20otherwise physically altering existing laboratory or research
21facilities, expansion or physical additions to existing
22laboratory or research facilities, construction of new
23laboratory or research facilities or acquisition of modern
24equipment to support laboratory or research operations
25provided that such grants (i) be used solely in support of
26project and equipment acquisitions which enhance technology

 

 

SB3073- 45 -LRB100 16948 RPS 32093 b

1transfer, and (ii) not constitute more than 60 percent of the
2total project or acquisition cost.
3    (q) Grants may be awarded by the Authority to units of
4local government for the purpose of developing the appropriate
5infrastructure or defraying other costs to the local government
6in support of laboratory or research facilities provided that
7such grants may not exceed 40% of the cost to the unit of local
8government.
9    (r) The Authority may establish a Direct Loan Program to
10make loans to individuals, partnerships or corporations for the
11purpose of an industrial project, as defined in Section 801-10
12of this Act. For the purposes of such program and not by way of
13limitation on any other program of the Authority, the Authority
14shall have the power to issue bonds, notes, or other evidences
15of indebtedness including commercial paper for purposes of
16providing a fund of capital from which it may make such loans.
17The Authority shall have the power to use any appropriations
18from the State made especially for the Authority's Direct Loan
19Program for additional capital to make such loans or for the
20purposes of reserve funds or pledged funds which secure the
21Authority's obligations of repayment of any bond, note or other
22form of indebtedness established for the purpose of providing
23capital for which it intends to make such loans under the
24Direct Loan Program. For the purpose of obtaining such capital,
25the Authority may also enter into agreements with financial
26institutions and other persons for the purpose of selling loans

 

 

SB3073- 46 -LRB100 16948 RPS 32093 b

1and developing a secondary market for such loans. Loans made
2under the Direct Loan Program may be in an amount not to exceed
3$300,000 and shall be made for a portion of an industrial
4project which does not exceed 50% of the total project. No loan
5may be made by the Authority unless approved by the affirmative
6vote of at least 8 members of the board. The Authority shall
7establish procedures and publish rules which shall provide for
8the submission, review, and analysis of each direct loan
9application and which shall preserve the ability of each board
10member to reach an individual business judgment regarding the
11propriety of making each direct loan. The collective discretion
12of the board to approve or disapprove each loan shall be
13unencumbered. The Authority may establish and collect such fees
14and charges, determine and enforce such terms and conditions,
15and charge such interest rates as it determines to be necessary
16and appropriate to the successful administration of the Direct
17Loan Program. The Authority may require such interests in
18collateral and such guarantees as it determines are necessary
19to project the Authority's interest in the repayment of the
20principal and interest of each loan made under the Direct Loan
21Program.
22    (s) The Authority may guarantee private loans to third
23parties up to a specified dollar amount in order to promote
24economic development in this State.
25    (t) The Authority may adopt rules and regulations as may be
26necessary or advisable to implement the powers conferred by

 

 

SB3073- 47 -LRB100 16948 RPS 32093 b

1this Act.
2    (u) The Authority shall have the power to issue bonds,
3notes or other evidences of indebtedness, which may be used to
4make loans to units of local government which are authorized to
5enter into loan agreements and other documents and to issue
6bonds, notes and other evidences of indebtedness for the
7purpose of financing the protection of storm sewer outfalls,
8the construction of adequate storm sewer outfalls, and the
9provision for flood protection of sanitary sewage treatment
10plans, in counties that have established a stormwater
11management planning committee in accordance with Section
125-1062 of the Counties Code. Any such loan shall be made by the
13Authority pursuant to the provisions of Section 820-5 to 820-60
14of this Act. The unit of local government shall pay back to the
15Authority the principal amount of the loan, plus annual
16interest as determined by the Authority. The Authority shall
17have the power, subject to appropriations by the General
18Assembly, to subsidize or buy down a portion of the interest on
19such loans, up to 4% per annum.
20    (v) The Authority may accept security interests as provided
21in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
22    (w) Moral Obligation. In the event that the Authority
23determines that monies of the Authority will not be sufficient
24for the payment of the principal of and interest on its bonds
25during the next State fiscal year, the Chairperson, as soon as
26practicable, shall certify to the Governor the amount required

 

 

SB3073- 48 -LRB100 16948 RPS 32093 b

1by the Authority to enable it to pay such principal of and
2interest on the bonds. The Governor shall submit the amount so
3certified to the General Assembly as soon as practicable, but
4no later than the end of the current State fiscal year. This
5subsection shall apply only to any bonds or notes as to which
6the Authority shall have determined, in the resolution
7authorizing the issuance of the bonds or notes, that this
8subsection shall apply. Whenever the Authority makes such a
9determination, that fact shall be plainly stated on the face of
10the bonds or notes and that fact shall also be reported to the
11Governor. In the event of a withdrawal of moneys from a reserve
12fund established with respect to any issue or issues of bonds
13of the Authority to pay principal or interest on those bonds,
14the Chairperson of the Authority, as soon as practicable, shall
15certify to the Governor the amount required to restore the
16reserve fund to the level required in the resolution or
17indenture securing those bonds. The Governor shall submit the
18amount so certified to the General Assembly as soon as
19practicable, but no later than the end of the current State
20fiscal year. The Authority shall obtain written approval from
21the Governor for any bonds and notes to be issued under this
22Section. In addition to any other bonds authorized to be issued
23under Sections 825-60, 825-65(e), 830-25 and 845-5, the
24principal amount of Authority bonds outstanding issued under
25this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
26360/2-6(c), which have been assumed by the Authority, shall not

 

 

SB3073- 49 -LRB100 16948 RPS 32093 b

1exceed $150,000,000. This subsection (w) shall in no way be
2applied to any bonds issued by the Authority on behalf of the
3Illinois Power Agency under Section 825-90 of this Act.
4    (x) The Authority may enter into agreements or contracts
5with any person necessary or appropriate to place the payment
6obligations of the Authority under any of its bonds in whole or
7in part on any interest rate basis, cash flow basis, or other
8basis desired by the Authority, including without limitation
9agreements or contracts commonly known as "interest rate swap
10agreements", "forward payment conversion agreements", and
11"futures", or agreements or contracts to exchange cash flows or
12a series of payments, or agreements or contracts, including
13without limitation agreements or contracts commonly known as
14"options", "puts", or "calls", to hedge payment, rate spread,
15or similar exposure; provided that any such agreement or
16contract shall not constitute an obligation for borrowed money
17and shall not be taken into account under Section 845-5 of this
18Act or any other debt limit of the Authority or the State of
19Illinois.
20    (y) The Authority shall publish summaries of projects and
21actions approved by the members of the Authority on its
22website. These summaries shall include, but not be limited to,
23information regarding the:
24        (1) project;
25        (2) Board's action or actions;
26        (3) purpose of the project;

 

 

SB3073- 50 -LRB100 16948 RPS 32093 b

1        (4) Authority's program and contribution;
2        (5) volume cap;
3        (6) jobs retained;
4        (7) projected new jobs;
5        (8) construction jobs created;
6        (9) estimated sources and uses of funds;
7        (10) financing summary;
8        (11) project summary;
9        (12) business summary;
10        (13) ownership or economic disclosure statement;
11        (14) professional and financial information;
12        (15) service area; and
13        (16) legislative district.
14    The disclosure of information pursuant to this subsection
15shall comply with the Freedom of Information Act.
16(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;
1795-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
18P.A. 96-793 for the effective date of changes made by P.A.
1996-795).)
 
20    Section 15. The State Finance Act is amended by adding
21Section 5.886 as follows:
 
22    (30 ILCS 105/5.886 new)
23    Sec. 5.886. The State Pension Obligation Acceleration Bond
24Fund.
 

 

 

SB3073- 51 -LRB100 16948 RPS 32093 b

1    Section 20. The General Obligation Bond Act is amended by
2changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding
3Section 7.7 as follows:
 
4    (30 ILCS 330/2)  (from Ch. 127, par. 652)
5    Sec. 2. Authorization for Bonds. The State of Illinois is
6authorized to issue, sell and provide for the retirement of
7General Obligation Bonds of the State of Illinois for the
8categories and specific purposes expressed in Sections 2
9through 8 of this Act, in the total amount of $56,167,925,743
10$55,917,925,743.
11    The bonds authorized in this Section 2 and in Section 16 of
12this Act are herein called "Bonds".
13    Of the total amount of Bonds authorized in this Act, up to
14$2,200,000,000 in aggregate original principal amount may be
15issued and sold in accordance with the Baccalaureate Savings
16Act in the form of General Obligation College Savings Bonds.
17    Of the total amount of Bonds authorized in this Act, up to
18$300,000,000 in aggregate original principal amount may be
19issued and sold in accordance with the Retirement Savings Act
20in the form of General Obligation Retirement Savings Bonds.
21    Of the total amount of Bonds authorized in this Act, the
22additional $10,000,000,000 authorized by Public Act 93-2, the
23$3,466,000,000 authorized by Public Act 96-43, and the
24$4,096,348,300 authorized by Public Act 96-1497 shall be used

 

 

SB3073- 52 -LRB100 16948 RPS 32093 b

1solely as provided in Section 7.2.
2    Of the total amount of Bonds authorized in this Act, the
3additional $6,000,000,000 authorized by this amendatory Act of
4the 100th General Assembly shall be used solely as provided in
5Section 7.6 and shall be issued by December 31, 2017.
6    Of the total amount of Bonds authorized in this Act, the
7additional $250,000,000 authorized by this amendatory Act of
8the 100th General Assembly shall be used solely as provided in
9Section 7.7.
10    The issuance and sale of Bonds pursuant to the General
11Obligation Bond Act is an economical and efficient method of
12financing the long-term capital needs of the State. This Act
13will permit the issuance of a multi-purpose General Obligation
14Bond with uniform terms and features. This will not only lower
15the cost of registration but also reduce the overall cost of
16issuing debt by improving the marketability of Illinois General
17Obligation Bonds.
18(Source: P.A. 100-23, eff. 7-6-17.)
 
19    (30 ILCS 330/2.5)
20    Sec. 2.5. Limitation on issuance of Bonds.
21    (a) Except as provided in subsection (b), no Bonds may be
22issued if, after the issuance, in the next State fiscal year
23after the issuance of the Bonds, the amount of debt service
24(including principal, whether payable at maturity or pursuant
25to mandatory sinking fund installments, and interest) on all

 

 

SB3073- 53 -LRB100 16948 RPS 32093 b

1then-outstanding Bonds, other than (i) Bonds authorized by
2Public Act 100-23 this amendatory Act of the 100th General
3Assembly, (ii) Bonds authorized by this amendatory Act of the
4100th General Assembly, (iii) (ii) Bonds issued by Public Act
596-43, and (iv) (iii) Bonds authorized by Public Act 96-1497,
6would exceed 7% of the aggregate appropriations from the
7general funds (which consist of the General Revenue Fund, the
8Common School Fund, the General Revenue Common School Special
9Account Fund, and the Education Assistance Fund) and the Road
10Fund for the fiscal year immediately prior to the fiscal year
11of the issuance.
12    (b) If the Comptroller and Treasurer each consent in
13writing, Bonds may be issued even if the issuance does not
14comply with subsection (a). In addition, $2,000,000,000 in
15Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
16and $2,000,000,000 in Refunding Bonds under Section 16, may be
17issued during State fiscal year 2017 without complying with
18subsection (a). In addition, $2,000,000,000 in Bonds for the
19purposes set forth in Sections 3, 4, 5, 6, and 7, and
20$2,000,000,000 in Refunding Bonds under Section 16, may be
21issued during State fiscal year 2018 without complying with
22subsection (a).
23(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
2425-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
257-6-17; revised 8-8-17.)
 

 

 

SB3073- 54 -LRB100 16948 RPS 32093 b

1    (30 ILCS 330/7.7 new)
2    Sec. 7.7. State Pension Obligation Acceleration Bonds.
3    (a) As used in this Act, "State Pension Obligation
4Acceleration Bonds" means Bonds authorized by this amendatory
5Act of the 100th General Assembly and used for the purposes set
6forth in subsection (c-5) of Section 801-40 of the Illinois
7Finance Authority Act.
8    (b) State Pension Obligation Acceleration Bonds in the
9amount of $250,000,000 are hereby authorized to be used for the
10purposes set forth in subsection (c-5) of Section 801-40 of the
11Illinois Finance Authority Act.
12    (c) The proceeds of State Pension Obligation Acceleration
13Bonds authorized in subsection (b) of this Section, less the
14amounts authorized in the Bond Sale Order to be directly paid
15out for bond sale expenses under Section 8, shall be deposited
16directly into the State Pension Obligation Acceleration Bond
17Fund, and the Comptroller and the Treasurer shall, as soon as
18practical, make payments as contemplated by subsection (c-5) of
19Section 801-40 of the Illinois Finance Authority Act.
20    (d) There is created the State Pension Obligation
21Acceleration Bond Fund as a special fund in the State Treasury.
22Funds deposited in the State Pension Obligation Acceleration
23Bond Fund may only be used for the purposes set forth in
24subsection (c-5) of Section 801-40 of the Illinois Finance
25Authority Act or for the payment of principal and interest due
26on State Pension Obligation Acceleration Bonds.
 

 

 

SB3073- 55 -LRB100 16948 RPS 32093 b

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

 

 

SB3073- 56 -LRB100 16948 RPS 32093 b

1subject to purchase and retirement or tender and remarketing as
2fixed and determined in the Bond Sale Order. Bonds, other than
3Bonds issued under Section 3 of this Act for the costs
4associated with the purchase and implementation of information
5technology, (i) except for refunding Bonds satisfying the
6requirements of Section 16 of this Act and sold during fiscal
7year 2009, 2010, 2011, 2017, or 2018 must be issued with
8principal or mandatory redemption amounts in equal amounts,
9with the first maturity issued occurring within the fiscal year
10in which the Bonds are issued or within the next succeeding
11fiscal year and (ii) must mature or be subject to mandatory
12redemption each fiscal year thereafter up to 25 years, except
13for refunding Bonds satisfying the requirements of Section 16
14of this Act and sold during fiscal year 2009, 2010, or 2011
15which must mature or be subject to mandatory redemption each
16fiscal year thereafter up to 16 years. Bonds issued under
17Section 3 of this Act for the costs associated with the
18purchase and implementation of information technology must be
19issued with principal or mandatory redemption amounts in equal
20amounts, with the first maturity issued occurring with the
21fiscal year in which the respective bonds are issued or with
22the next succeeding fiscal year, with the respective bonds
23issued maturing or subject to mandatory redemption each fiscal
24year thereafter up to 10 years. Notwithstanding any provision
25of this Act to the contrary, the Bonds authorized by Public Act
2696-43 shall be payable within 5 years from their date and must

 

 

SB3073- 57 -LRB100 16948 RPS 32093 b

1be issued with principal or mandatory redemption amounts in
2equal amounts, with payment of principal or mandatory
3redemption beginning in the first fiscal year following the
4fiscal year in which the Bonds are issued.
5    Notwithstanding any provision of this Act to the contrary,
6the Bonds authorized by Public Act 96-1497 shall be payable
7within 8 years from their date and shall be issued with payment
8of maturing principal or scheduled mandatory redemptions in
9accordance with the following schedule, except the following
10amounts shall be prorated if less than the total additional
11amount of Bonds authorized by Public Act 96-1497 are issued:
12    Fiscal Year After Issuance    Amount
13        1-2                        $0 
14        3                          $110,712,120
15        4                          $332,136,360
16        5                          $664,272,720
17        6-8                        $996,409,080
18    Notwithstanding any provision of this Act to the contrary,
19Income Tax Proceed Bonds issued under Section 7.6 shall be
20payable 12 years from the date of sale and shall be issued with
21payment of principal or mandatory redemption.
22    In the case of any series of Bonds bearing interest at a
23variable interest rate ("Variable Rate Bonds"), in lieu of
24determining the rate or rates at which such series of Variable
25Rate Bonds shall bear interest and the price or prices at which
26such Variable Rate Bonds shall be initially sold or remarketed

 

 

SB3073- 58 -LRB100 16948 RPS 32093 b

1(in the event of purchase and subsequent resale), the Bond Sale
2Order may provide that such interest rates and prices may vary
3from time to time depending on criteria established in such
4Bond Sale Order, which criteria may include, without
5limitation, references to indices or variations in interest
6rates as may, in the judgment of a remarketing agent, be
7necessary to cause Variable Rate Bonds of such series to be
8remarketable from time to time at a price equal to their
9principal amount, and may provide for appointment of a bank,
10trust company, investment bank, or other financial institution
11to serve as remarketing agent in that connection. The Bond Sale
12Order may provide that alternative interest rates or provisions
13for establishing alternative interest rates, different
14security or claim priorities, or different call or amortization
15provisions will apply during such times as Variable Rate Bonds
16of any series are held by a person providing credit or
17liquidity enhancement arrangements for such Bonds as
18authorized in subsection (b) of this Section. The Bond Sale
19Order may also provide for such variable interest rates to be
20established pursuant to a process generally known as an auction
21rate process and may provide for appointment of one or more
22financial institutions to serve as auction agents and
23broker-dealers in connection with the establishment of such
24interest rates and the sale and remarketing of such Bonds.
25    (b) In connection with the issuance of any series of Bonds,
26the State may enter into arrangements to provide additional

 

 

SB3073- 59 -LRB100 16948 RPS 32093 b

1security and liquidity for such Bonds, including, without
2limitation, bond or interest rate insurance or letters of
3credit, lines of credit, bond purchase contracts, or other
4arrangements whereby funds are made available to retire or
5purchase Bonds, thereby assuring the ability of owners of the
6Bonds to sell or redeem their Bonds. The State may enter into
7contracts and may agree to pay fees to persons providing such
8arrangements, but only under circumstances where the Director
9of the Governor's Office of Management and Budget certifies
10that he or she reasonably expects the total interest paid or to
11be paid on the Bonds, together with the fees for the
12arrangements (being treated as if interest), would not, taken
13together, cause the Bonds to bear interest, calculated to their
14stated maturity, at a rate in excess of the rate that the Bonds
15would bear in the absence of such arrangements.
16    The State may, with respect to Bonds issued or anticipated
17to be issued, participate in and enter into arrangements with
18respect to interest rate protection or exchange agreements,
19guarantees, or financial futures contracts for the purpose of
20limiting, reducing, or managing interest rate exposure. The
21authority granted under this paragraph, however, shall not
22increase the principal amount of Bonds authorized to be issued
23by law. The arrangements may be executed and delivered by the
24Director of the Governor's Office of Management and Budget on
25behalf of the State. Net payments for such arrangements shall
26constitute interest on the Bonds and shall be paid from the

 

 

SB3073- 60 -LRB100 16948 RPS 32093 b

1General Obligation Bond Retirement and Interest Fund. The
2Director of the Governor's Office of Management and Budget
3shall at least annually certify to the Governor and the State
4Comptroller his or her estimate of the amounts of such net
5payments to be included in the calculation of interest required
6to be paid by the State.
7    (c) Prior to the issuance of any Variable Rate Bonds
8pursuant to subsection (a), the Director of the Governor's
9Office of Management and Budget shall adopt an interest rate
10risk management policy providing that the amount of the State's
11variable rate exposure with respect to Bonds shall not exceed
1220%. This policy shall remain in effect while any Bonds are
13outstanding and the issuance of Bonds shall be subject to the
14terms of such policy. The terms of this policy may be amended
15from time to time by the Director of the Governor's Office of
16Management and Budget but in no event shall any amendment cause
17the permitted level of the State's variable rate exposure with
18respect to Bonds to exceed 20%.
19    (d) "Build America Bonds" in this Section means Bonds
20authorized by Section 54AA of the Internal Revenue Code of
211986, as amended ("Internal Revenue Code"), and bonds issued
22from time to time to refund or continue to refund "Build
23America Bonds".
24    (e) Notwithstanding any other provision of this Section,
25Qualified School Construction Bonds shall be issued and sold
26from time to time, in one or more series, in such amounts and

 

 

SB3073- 61 -LRB100 16948 RPS 32093 b

1at such prices as may be directed by the Governor, upon
2recommendation by the Director of the Governor's Office of
3Management and Budget. Qualified School Construction Bonds
4shall be in such form (either coupon, registered or book
5entry), in such denominations, payable within 25 years from
6their date, subject to such terms of redemption with or without
7premium, and if the Qualified School Construction Bonds are
8issued with a supplemental coupon, bear interest payable at
9such times and at such fixed or variable rate or rates, and be
10dated as shall be fixed and determined by the Director of the
11Governor's Office of Management and Budget in the order
12authorizing the issuance and sale of any series of Qualified
13School Construction Bonds, which order shall be approved by the
14Governor and is herein called a "Bond Sale Order"; except that
15interest payable at fixed or variable rates, if any, shall not
16exceed that permitted in the Bond Authorization Act, as now or
17hereafter amended. Qualified School Construction Bonds shall
18be payable at such place or places, within or without the State
19of Illinois, and may be made registrable as to either principal
20or as to both principal and interest, as shall be specified in
21the Bond Sale Order. Qualified School Construction Bonds may be
22callable or subject to purchase and retirement or tender and
23remarketing as fixed and determined in the Bond Sale Order.
24Qualified School Construction Bonds must be issued with
25principal or mandatory redemption amounts or sinking fund
26payments into the General Obligation Bond Retirement and

 

 

SB3073- 62 -LRB100 16948 RPS 32093 b

1Interest Fund (or subaccount therefor) in equal amounts, with
2the first maturity issued, mandatory redemption payment or
3sinking fund payment occurring within the fiscal year in which
4the Qualified School Construction Bonds are issued or within
5the next succeeding fiscal year, with Qualified School
6Construction Bonds issued maturing or subject to mandatory
7redemption or with sinking fund payments thereof deposited each
8fiscal year thereafter up to 25 years. Sinking fund payments
9set forth in this subsection shall be permitted only to the
10extent authorized in Section 54F of the Internal Revenue Code
11or as otherwise determined by the Director of the Governor's
12Office of Management and Budget. "Qualified School
13Construction Bonds" in this subsection means Bonds authorized
14by Section 54F of the Internal Revenue Code and for bonds
15issued from time to time to refund or continue to refund such
16"Qualified School Construction Bonds".
17    (f) Beginning with the next issuance by the Governor's
18Office of Management and Budget to the Procurement Policy Board
19of a request for quotation for the purpose of formulating a new
20pool of qualified underwriting banks list, all entities
21responding to such a request for quotation for inclusion on
22that list shall provide a written report to the Governor's
23Office of Management and Budget and the Illinois Comptroller.
24The written report submitted to the Comptroller shall (i) be
25published on the Comptroller's Internet website and (ii) be
26used by the Governor's Office of Management and Budget for the

 

 

SB3073- 63 -LRB100 16948 RPS 32093 b

1purposes of scoring such a request for quotation. The written
2report, at a minimum, shall:
3        (1) disclose whether, within the past 3 months,
4    pursuant to its credit default swap market-making
5    activities, the firm has entered into any State of Illinois
6    credit default swaps ("CDS");
7        (2) include, in the event of State of Illinois CDS
8    activity, disclosure of the firm's cumulative notional
9    volume of State of Illinois CDS trades and the firm's
10    outstanding gross and net notional amount of State of
11    Illinois CDS, as of the end of the current 3-month period;
12        (3) indicate, pursuant to the firm's proprietary
13    trading activities, disclosure of whether the firm, within
14    the past 3 months, has entered into any proprietary trades
15    for its own account in State of Illinois CDS;
16        (4) include, in the event of State of Illinois
17    proprietary trades, disclosure of the firm's outstanding
18    gross and net notional amount of proprietary State of
19    Illinois CDS and whether the net position is short or long
20    credit protection, as of the end of the current 3-month
21    period;
22        (5) list all time periods during the past 3 months
23    during which the firm held net long or net short State of
24    Illinois CDS proprietary credit protection positions, the
25    amount of such positions, and whether those positions were
26    net long or net short credit protection positions; and

 

 

SB3073- 64 -LRB100 16948 RPS 32093 b

1        (6) indicate whether, within the previous 3 months, the
2    firm released any publicly available research or marketing
3    reports that reference State of Illinois CDS and include
4    those research or marketing reports as attachments.
5    (g) All entities included on a Governor's Office of
6Management and Budget's pool of qualified underwriting banks
7list shall, as soon as possible after March 18, 2011 (the
8effective date of Public Act 96-1554), but not later than
9January 21, 2011, and on a quarterly fiscal basis thereafter,
10provide a written report to the Governor's Office of Management
11and Budget and the Illinois Comptroller. The written reports
12submitted to the Comptroller shall be published on the
13Comptroller's Internet website. The written reports, at a
14minimum, shall:
15        (1) disclose whether, within the past 3 months,
16    pursuant to its credit default swap market-making
17    activities, the firm has entered into any State of Illinois
18    credit default swaps ("CDS");
19        (2) include, in the event of State of Illinois CDS
20    activity, disclosure of the firm's cumulative notional
21    volume of State of Illinois CDS trades and the firm's
22    outstanding gross and net notional amount of State of
23    Illinois CDS, as of the end of the current 3-month period;
24        (3) indicate, pursuant to the firm's proprietary
25    trading activities, disclosure of whether the firm, within
26    the past 3 months, has entered into any proprietary trades

 

 

SB3073- 65 -LRB100 16948 RPS 32093 b

1    for its own account in State of Illinois CDS;
2        (4) include, in the event of State of Illinois
3    proprietary trades, disclosure of the firm's outstanding
4    gross and net notional amount of proprietary State of
5    Illinois CDS and whether the net position is short or long
6    credit protection, as of the end of the current 3-month
7    period;
8        (5) list all time periods during the past 3 months
9    during which the firm held net long or net short State of
10    Illinois CDS proprietary credit protection positions, the
11    amount of such positions, and whether those positions were
12    net long or net short credit protection positions; and
13        (6) indicate whether, within the previous 3 months, the
14    firm released any publicly available research or marketing
15    reports that reference State of Illinois CDS and include
16    those research or marketing reports as attachments.
17    (h) Notwithstanding any other provision of this Section,
18for purposes of maximizing market efficiencies and cost
19savings, Income Tax Proceed Bonds may be issued and sold from
20time to time, in one or more series, in such amounts and at
21such prices as may be directed by the Governor, upon
22recommendation by the Director of the Governor's Office of
23Management and Budget. Income Tax Proceed Bonds shall be in
24such form, either coupon, registered, or book entry, in such
25denominations, shall bear interest payable at such times and at
26such fixed or variable rate or rates, and be dated as shall be

 

 

SB3073- 66 -LRB100 16948 RPS 32093 b

1fixed and determined by the Director of the Governor's Office
2of Management and Budget in the order authorizing the issuance
3and sale of any series of Income Tax Proceed Bonds, which order
4shall be approved by the Governor and is herein called a "Bond
5Sale Order"; provided, however, that interest payable at fixed
6or variable rates shall not exceed that permitted in the Bond
7Authorization Act. Income Tax Proceed Bonds shall be payable at
8such place or places, within or without the State of Illinois,
9and may be made registrable as to either principal or as to
10both principal and interest, as shall be specified in the Bond
11Sale Order. Income Tax Proceed Bonds may be callable or subject
12to purchase and retirement or tender and remarketing as fixed
13and determined in the Bond Sale Order.
14    (i) Notwithstanding any other provision of this Section,
15for purposes of maximizing market efficiencies and cost
16savings, State Pension Obligation Acceleration Bonds may be
17issued and sold from time to time, in one or more series, in
18such amounts and at such prices as may be directed by the
19Governor, upon recommendation by the Director of the Governor's
20Office of Management and Budget. State Pension Obligation
21Acceleration Bonds shall be in such form, either coupon,
22registered, or book entry, in such denominations, shall bear
23interest payable at such times and at such fixed or variable
24rate or rates, and be dated as shall be fixed and determined by
25the Director of the Governor's Office of Management and Budget
26in the order authorizing the issuance and sale of any series of

 

 

SB3073- 67 -LRB100 16948 RPS 32093 b

1State Pension Obligation Acceleration Bonds, which order shall
2be approved by the Governor and is herein called a "Bond Sale
3Order"; provided, however, that interest payable at fixed or
4variable rates shall not exceed that permitted in the Bond
5Authorization Act. State Pension Obligation Acceleration Bonds
6shall be payable at such place or places, within or without the
7State of Illinois, and may be made registrable as to either
8principal or as to both principal and interest, as shall be
9specified in the Bond Sale Order. State Pension Obligation
10Acceleration Bonds may be callable or subject to purchase and
11retirement or tender and remarketing as fixed and determined in
12the Bond Sale Order.
13(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
1425-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
157-6-17; revised 8-8-17.)
 
16    (30 ILCS 330/11)  (from Ch. 127, par. 661)
17    Sec. 11. Sale of Bonds. Except as otherwise provided in
18this Section, Bonds shall be sold from time to time pursuant to
19notice of sale and public bid or by negotiated sale in such
20amounts and at such times as is directed by the Governor, upon
21recommendation by the Director of the Governor's Office of
22Management and Budget. At least 25%, based on total principal
23amount, of all Bonds issued each fiscal year shall be sold
24pursuant to notice of sale and public bid. At all times during
25each fiscal year, no more than 75%, based on total principal

 

 

SB3073- 68 -LRB100 16948 RPS 32093 b

1amount, of the Bonds issued each fiscal year, shall have been
2sold by negotiated sale. Failure to satisfy the requirements in
3the preceding 2 sentences shall not affect the validity of any
4previously issued Bonds; provided that all Bonds authorized by
5Public Act 96-43 and Public Act 96-1497 shall not be included
6in determining compliance for any fiscal year with the
7requirements of the preceding 2 sentences; and further provided
8that refunding Bonds satisfying the requirements of Section 16
9of this Act and sold during fiscal year 2009, 2010, 2011, 2017,
10or 2018 shall not be subject to the requirements in the
11preceding 2 sentences.
12    If any Bonds, including refunding Bonds, are to be sold by
13negotiated sale, the Director of the Governor's Office of
14Management and Budget shall comply with the competitive request
15for proposal process set forth in the Illinois Procurement Code
16and all other applicable requirements of that Code.
17    If Bonds are to be sold pursuant to notice of sale and
18public bid, the Director of the Governor's Office of Management
19and Budget may, from time to time, as Bonds are to be sold,
20advertise the sale of the Bonds in at least 2 daily newspapers,
21one of which is published in the City of Springfield and one in
22the City of Chicago. The sale of the Bonds shall also be
23advertised in the volume of the Illinois Procurement Bulletin
24that is published by the Department of Central Management
25Services, and shall be published once at least 10 days prior to
26the date fixed for the opening of the bids. The Director of the

 

 

SB3073- 69 -LRB100 16948 RPS 32093 b

1Governor's Office of Management and Budget may reschedule the
2date of sale upon the giving of such additional notice as the
3Director deems adequate to inform prospective bidders of such
4change; provided, however, that all other conditions of the
5sale shall continue as originally advertised.
6    Executed Bonds shall, upon payment therefor, be delivered
7to the purchaser, and the proceeds of Bonds shall be paid into
8the State Treasury as directed by Section 12 of this Act.
9    All Income Tax Proceed Bonds shall comply with this
10Section. Notwithstanding anything to the contrary, however,
11for purposes of complying with this Section, Income Tax Proceed
12Bonds, regardless of the number of series or issuances sold
13thereunder, shall be considered a single issue or series.
14Furthermore, for purposes of complying with the competitive
15bidding requirements of this Section, the words "at all times"
16shall not apply to any such sale of the Income Tax Proceed
17Bonds. The Director of the Governor's Office of Management and
18Budget shall determine the time and manner of any competitive
19sale of the Income Tax Proceed Bonds; however, that sale shall
20under no circumstances take place later than 60 days after the
21State closes the sale of 75% of the Income Tax Proceed Bonds by
22negotiated sale.
23    All State Pension Obligation Acceleration Bonds shall
24comply with this Section. Notwithstanding anything to the
25contrary, however, for purposes of complying with this Section,
26State Pension Obligation Acceleration Bonds, regardless of the

 

 

SB3073- 70 -LRB100 16948 RPS 32093 b

1number of series or issuances sold thereunder, shall be
2considered a single issue or series. Furthermore, for purposes
3of complying with the competitive bidding requirements of this
4Section, the words "at all times" shall not apply to any such
5sale of the State Pension Obligation Acceleration Bonds. The
6Director of the Governor's Office of Management and Budget
7shall determine the time and manner of any competitive sale of
8the State Pension Obligation Acceleration Bonds; however, that
9sale shall under no circumstances take place later than 60 days
10after the State closes the sale of 75% of the State Pension
11Obligation Acceleration Bonds by negotiated sale.
12(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
1325-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
147-6-17; revised 8-15-17.)
 
15    (30 ILCS 330/12)  (from Ch. 127, par. 662)
16    Sec. 12. Allocation of proceeds from sale of Bonds.
17    (a) Proceeds from the sale of Bonds, authorized by Section
183 of this Act, shall be deposited in the separate fund known as
19the Capital Development Fund.
20    (b) Proceeds from the sale of Bonds, authorized by
21paragraph (a) of Section 4 of this Act, shall be deposited in
22the separate fund known as the Transportation Bond, Series A
23Fund.
24    (c) Proceeds from the sale of Bonds, authorized by
25paragraphs (b) and (c) of Section 4 of this Act, shall be

 

 

SB3073- 71 -LRB100 16948 RPS 32093 b

1deposited in the separate fund known as the Transportation
2Bond, Series B Fund.
3    (c-1) Proceeds from the sale of Bonds, authorized by
4paragraph (d) of Section 4 of this Act, shall be deposited into
5the Transportation Bond Series D Fund, which is hereby created.
6    (d) Proceeds from the sale of Bonds, authorized by Section
75 of this Act, shall be deposited in the separate fund known as
8the School Construction Fund.
9    (e) Proceeds from the sale of Bonds, authorized by Section
106 of this Act, shall be deposited in the separate fund known as
11the Anti-Pollution Fund.
12    (f) Proceeds from the sale of Bonds, authorized by Section
137 of this Act, shall be deposited in the separate fund known as
14the Coal Development Fund.
15    (f-2) Proceeds from the sale of Bonds, authorized by
16Section 7.2 of this Act, shall be deposited as set forth in
17Section 7.2.
18    (f-5) Proceeds from the sale of Bonds, authorized by
19Section 7.5 of this Act, shall be deposited as set forth in
20Section 7.5.
21    (f-7) Proceeds from the sale of Bonds, authorized by
22Section 7.6 of this Act, shall be deposited as set forth in
23Section 7.6.
24    (f-10) Proceeds from the sale of Bonds, authorized by
25Section 7.7 of this Act, shall be deposited as set forth in
26Section 7.7.

 

 

SB3073- 72 -LRB100 16948 RPS 32093 b

1    (g) Proceeds from the sale of Bonds, authorized by Section
28 of this Act, shall be deposited in the Capital Development
3Fund.
4    (h) Subsequent to the issuance of any Bonds for the
5purposes described in Sections 2 through 8 of this Act, the
6Governor and the Director of the Governor's Office of
7Management and Budget may provide for the reallocation of
8unspent proceeds of such Bonds to any other purposes authorized
9under said Sections of this Act, subject to the limitations on
10aggregate principal amounts contained therein. Upon any such
11reallocation, such unspent proceeds shall be transferred to the
12appropriate funds as determined by reference to paragraphs (a)
13through (g) of this Section.
14(Source: P.A. 100-23, eff. 7-6-17.)
 
15    (30 ILCS 330/13)  (from Ch. 127, par. 663)
16    Sec. 13. Appropriation of proceeds from sale of Bonds.
17    (a) At all times, the proceeds from the sale of Bonds
18issued pursuant to this Act are subject to appropriation by the
19General Assembly and, except as provided in Sections 7.2, and
207.6, and 7.7, may be obligated or expended only with the
21written approval of the Governor, in such amounts, at such
22times, and for such purposes as the respective State agencies,
23as defined in Section 1-7 of the Illinois State Auditing Act,
24as amended, deem necessary or desirable for the specific
25purposes contemplated in Sections 2 through 8 of this Act.

 

 

SB3073- 73 -LRB100 16948 RPS 32093 b

1Notwithstanding any other provision of this Act, proceeds from
2the sale of Bonds issued pursuant to this Act appropriated by
3the General Assembly to the Architect of the Capitol may be
4obligated or expended by the Architect of the Capitol without
5the written approval of the Governor.
6    (b) Proceeds from the sale of Bonds for the purpose of
7development of coal and alternative forms of energy shall be
8expended in such amounts and at such times as the Department of
9Commerce and Economic Opportunity, with the advice and
10recommendation of the Illinois Coal Development Board for coal
11development projects, may deem necessary and desirable for the
12specific purpose contemplated by Section 7 of this Act. In
13considering the approval of projects to be funded, the
14Department of Commerce and Economic Opportunity shall give
15special consideration to projects designed to remove sulfur and
16other pollutants in the preparation and utilization of coal,
17and in the use and operation of electric utility generating
18plants and industrial facilities which utilize Illinois coal as
19their primary source of fuel.
20    (c) Except as directed in subsection (c-1) or (c-2), any
21monies received by any officer or employee of the state
22representing a reimbursement of expenditures previously paid
23from general obligation bond proceeds shall be deposited into
24the General Obligation Bond Retirement and Interest Fund
25authorized in Section 14 of this Act.
26    (c-1) Any money received by the Department of

 

 

SB3073- 74 -LRB100 16948 RPS 32093 b

1Transportation as reimbursement for expenditures for high
2speed rail purposes pursuant to appropriations from the
3Transportation Bond, Series B Fund for (i) CREATE (Chicago
4Region Environmental and Transportation Efficiency), (ii) High
5Speed Rail, or (iii) AMTRAK projects authorized by the federal
6government under the provisions of the American Recovery and
7Reinvestment Act of 2009 or the Safe Accountable Flexible
8Efficient Transportation Equity Act-A Legacy for Users
9(SAFETEA-LU), or any successor federal transportation
10authorization Act, shall be deposited into the Federal High
11Speed Rail Trust Fund.
12    (c-2) Any money received by the Department of
13Transportation as reimbursement for expenditures for transit
14capital purposes pursuant to appropriations from the
15Transportation Bond, Series B Fund for projects authorized by
16the federal government under the provisions of the American
17Recovery and Reinvestment Act of 2009 or the Safe Accountable
18Flexible Efficient Transportation Equity Act-A Legacy for
19Users (SAFETEA-LU), or any successor federal transportation
20authorization Act, shall be deposited into the Federal Mass
21Transit Trust Fund.
22(Source: P.A. 100-23, eff. 7-6-17.)
 
23    Section 25. The Illinois Pension Code is amended by
24changing Sections 14-152.1, 15-198, and 16-203 and by adding
25Sections 14-147.5, 15-185.5, and 16-190.5 as follows:
 

 

 

SB3073- 75 -LRB100 16948 RPS 32093 b

1    (40 ILCS 5/14-147.5 new)
2    Sec. 14-147.5. Accelerated pension benefit payment.
3    (a) As used in this Section:
4    "Eligible person" means a person who:
5        (1) has terminated service;
6        (2) has accrued sufficient service credit to be
7    eligible to receive a retirement annuity under this
8    Article;
9        (3) has not received any retirement annuity under this
10    Article; and
11        (4) does not have a QILDRO in effect against him or her
12    under this Article.
13    "Pension benefit" means the benefits under this Article, or
14Article 1 as it relates to those benefits, including any
15anticipated annual increases, that an eligible person is
16entitled to upon attainment of the applicable retirement age.
17"Pension benefit" also includes applicable survivor's or
18disability benefits.
19    (b) Before January 1, 2019, and annually thereafter, the
20System shall calculate, using actuarial tables and other
21assumptions adopted by the Board, the net present value of
22pension benefits for each eligible person and shall offer each
23eligible person the opportunity to irrevocably elect to receive
24an amount determined by the System to be equal to 70% of the
25net present value of his or her pension benefits in lieu of

 

 

SB3073- 76 -LRB100 16948 RPS 32093 b

1receiving any pension benefit. The offer shall specify the
2dollar amount that the eligible person will receive if he or
3she so elects and shall expire when a subsequent offer is made
4to the eligible person or when the System determines that 10%
5of eligible persons in that year have made the election under
6this subsection, whichever occurs first. The System shall make
7a good faith effort to contact every eligible person to notify
8him or her of the election and of the amount of the accelerated
9pension benefit payment.
10    Until the System determines that 10% of eligible persons in
11that year have made the election under this subsection, an
12eligible person may irrevocably elect to receive an accelerated
13pension benefit payment in the amount that the System offers
14under this subsection in lieu of receiving any pension benefit.
15A person who elects to receive an accelerated pension benefit
16payment under this Section may not elect to proceed under the
17Retirement Systems Reciprocal Act with respect to service under
18this Article.
19    (c) A person's credits and creditable service under this
20Article shall be terminated upon the person's receipt of an
21accelerated pension benefit payment under this Section, and no
22other benefit shall be paid under this Article based on those
23terminated credits and creditable service, including any
24retirement, survivor, or other benefit or refund; except that
25to the extent that participation, benefits, or premiums under
26the State Employees Group Insurance Act of 1971 are based on

 

 

SB3073- 77 -LRB100 16948 RPS 32093 b

1the amount of service credit, the terminated service credit
2shall be used for that purpose.
3    (d) If a person who has received an accelerated pension
4benefit payment under this Section returns to active service
5under this Article, then:
6        (1) Any benefits under the System earned as a result of
7    that return to active service shall be based solely on the
8    person's credits and creditable service arising from the
9    return to active service.
10        (2) The accelerated pension benefit payment may not be
11    repaid to the System, and the terminated credits and
12    creditable service may not under any circumstances be
13    reinstated.
14    (e) As a condition of receiving an accelerated pension
15benefit payment, an eligible person must have another
16retirement plan or account qualified under the Internal Revenue
17Code of 1986, as amended, for the accelerated pension benefit
18payment to be rolled into. The accelerated pension benefit
19payment under this Section may be subject to withholding or
20payment of applicable taxes, but to the extent permitted by
21federal law, a person who receives an accelerated pension
22benefit payment under this Section must direct the System to
23pay all of that payment as a rollover into another retirement
24plan or account qualified under the Internal Revenue Code of
251986, as amended.
26    (f) Before January 1, 2020 and every January 1 thereafter,

 

 

SB3073- 78 -LRB100 16948 RPS 32093 b

1the Board shall certify to the Illinois Finance Authority and
2the General Assembly the amount by which the total amount of
3accelerated pension benefit payments made under this Section
4exceed the amount appropriated to the System for the purpose of
5making those payments.
6    (g) The Board shall adopt any rules necessary to implement
7this Section.
8    (h) No provision of this Section shall be interpreted in a
9way that would cause the applicable System to cease to be a
10qualified plan under the Internal Revenue Code of 1986.
11    (i) Notwithstanding any other provision of this Section, in
12no case shall the total amount of accelerated pension benefit
13payments paid under this Section, Section 15-185.5, and Section
1416-190.5 cause the Illinois Finance Authority to issue more
15than the $250,000,000 of State Pension Obligation Acceleration
16Bonds authorized in subsection (c-5) of Section 801-40 of the
17Illinois Finance Authority Act.
 
18    (40 ILCS 5/14-152.1)
19    Sec. 14-152.1. Application and expiration of new benefit
20increases.
21    (a) As used in this Section, "new benefit increase" means
22an increase in the amount of any benefit provided under this
23Article, or an expansion of the conditions of eligibility for
24any benefit under this Article, that results from an amendment
25to this Code that takes effect after June 1, 2005 (the

 

 

SB3073- 79 -LRB100 16948 RPS 32093 b

1effective date of Public Act 94-4). "New benefit increase",
2however, does not include any benefit increase resulting from
3the changes made to Article 1 or this Article by Public Act
496-37, Public Act 100-23, or this amendatory Act of the 100th
5General Assembly by this amendatory Act of the 100th General
6Assembly.
7    (b) Notwithstanding any other provision of this Code or any
8subsequent amendment to this Code, every new benefit increase
9is subject to this Section and shall be deemed to be granted
10only in conformance with and contingent upon compliance with
11the provisions of this Section.
12    (c) The Public Act enacting a new benefit increase must
13identify and provide for payment to the System of additional
14funding at least sufficient to fund the resulting annual
15increase in cost to the System as it accrues.
16    Every new benefit increase is contingent upon the General
17Assembly providing the additional funding required under this
18subsection. The Commission on Government Forecasting and
19Accountability shall analyze whether adequate additional
20funding has been provided for the new benefit increase and
21shall report its analysis to the Public Pension Division of the
22Department of Insurance. A new benefit increase created by a
23Public Act that does not include the additional funding
24required under this subsection is null and void. If the Public
25Pension Division determines that the additional funding
26provided for a new benefit increase under this subsection is or

 

 

SB3073- 80 -LRB100 16948 RPS 32093 b

1has become inadequate, it may so certify to the Governor and
2the State Comptroller and, in the absence of corrective action
3by the General Assembly, the new benefit increase shall expire
4at the end of the fiscal year in which the certification is
5made.
6    (d) Every new benefit increase shall expire 5 years after
7its effective date or on such earlier date as may be specified
8in the language enacting the new benefit increase or provided
9under subsection (c). This does not prevent the General
10Assembly from extending or re-creating a new benefit increase
11by law.
12    (e) Except as otherwise provided in the language creating
13the new benefit increase, a new benefit increase that expires
14under this Section continues to apply to persons who applied
15and qualified for the affected benefit while the new benefit
16increase was in effect and to the affected beneficiaries and
17alternate payees of such persons, but does not apply to any
18other person, including without limitation a person who
19continues in service after the expiration date and did not
20apply and qualify for the affected benefit while the new
21benefit increase was in effect.
22(Source: P.A. 100-23, eff. 7-6-17.)
 
23    (40 ILCS 5/15-185.5 new)
24    Sec. 15-185.5. Accelerated pension benefit payment.
25    (a) As used in this Section:

 

 

SB3073- 81 -LRB100 16948 RPS 32093 b

1    "Eligible person" means a person who:
2        (1) has terminated service;
3        (2) has accrued sufficient service credit to be
4    eligible to receive a retirement annuity under this
5    Article;
6        (3) has not received any retirement annuity under this
7    Article;
8        (4) does not have a QILDRO in effect against him or her
9    under this Article; and
10        (5) is not a participant in the self-managed plan under
11    Section 15-158.2.
12    "Pension benefit" means the benefits under this Article, or
13Article 1 as it relates to those benefits, including any
14anticipated annual increases, that an eligible person is
15entitled to upon attainment of the applicable retirement age.
16"Pension benefit" also includes applicable survivor's or
17disability benefits.
18    (b) Before January 1, 2019, and annually thereafter, the
19System shall calculate, using actuarial tables and other
20assumptions adopted by the Board, the net present value of
21pension benefits for each eligible person and shall offer each
22eligible person the opportunity to irrevocably elect to receive
23an amount determined by the System to be equal to 70% of the
24net present value of his or her pension benefits in lieu of
25receiving any pension benefit. The offer shall specify the
26dollar amount that the eligible person will receive if he or

 

 

SB3073- 82 -LRB100 16948 RPS 32093 b

1she so elects and shall expire when a subsequent offer is made
2to the eligible person or when the System determines that 10%
3of eligible persons in that year have made the election under
4this subsection, whichever occurs first. The System shall make
5a good faith effort to contact every eligible person to notify
6him or her of the election and of the amount of the accelerated
7pension benefit payment.
8    Until the System determines that 10% of eligible persons in
9that year have made the election under this subsection, an
10eligible person may irrevocably elect to receive an accelerated
11pension benefit payment in the amount that the System offers
12under this subsection in lieu of receiving any pension benefit.
13A person who elects to receive an accelerated pension benefit
14payment under this Section may not elect to proceed under the
15Retirement Systems Reciprocal Act with respect to service under
16this Article.
17    (c) A person's credits and creditable service under this
18Article shall be terminated upon the person's receipt of an
19accelerated pension benefit payment under this Section, and no
20other benefit shall be paid under this Article based on those
21terminated credits and creditable service, including any
22retirement, survivor, or other benefit or refund; except that
23to the extent that participation, benefits, or premiums under
24the State Employees Group Insurance Act of 1971 are based on
25the amount of service credit, the terminated service credit
26shall be used for that purpose.

 

 

SB3073- 83 -LRB100 16948 RPS 32093 b

1    (d) If a person who has received an accelerated pension
2benefit payment under this Section returns to participating
3employee status under this Article, then:
4        (1) Any benefits under the System earned as a result of
5    that return to participating employee status shall be based
6    solely on the person's credits and creditable service
7    arising from the return to participating employee status.
8        (2) The accelerated pension benefit payment may not be
9    repaid to the System, and the terminated credits and
10    creditable service may not under any circumstances be
11    reinstated.
12    (e) As a condition of receiving an accelerated pension
13benefit payment, an eligible person must have another
14retirement plan or account qualified under the Internal Revenue
15Code of 1986, as amended, for the accelerated pension benefit
16payment to be rolled into. The accelerated pension benefit
17payment under this Section may be subject to withholding or
18payment of applicable taxes, but to the extent permitted by
19federal law, a person who receives an accelerated pension
20benefit payment under this Section must direct the System to
21pay all of that payment as a rollover into another retirement
22plan or account qualified under the Internal Revenue Code of
231986, as amended.
24    (f) Before January 1, 2020 and every January 1 thereafter,
25the Board shall certify to the Illinois Finance Authority and
26the General Assembly the amount by which the total amount of

 

 

SB3073- 84 -LRB100 16948 RPS 32093 b

1accelerated pension benefit payments made under this Section
2exceed the amount appropriated to the System for the purpose of
3making those payments.
4    (g) The Board shall adopt any rules necessary to implement
5this Section.
6    (h) No provision of this Section shall be interpreted in a
7way that would cause the applicable System to cease to be a
8qualified plan under the Internal Revenue Code of 1986.
9    (i) Notwithstanding any other provision of this Section, in
10no case shall the total amount of accelerated pension benefit
11payments paid under this Section, Section 14-147.5, and Section
1216-190.5 cause the Illinois Finance Authority to issue more
13than the $250,000,000 of State Pension Obligation Acceleration
14Bonds authorized in subsection (c-5) of Section 801-40 of the
15Illinois Finance Authority Act.
 
16    (40 ILCS 5/15-198)
17    Sec. 15-198. Application and expiration of new benefit
18increases.
19    (a) As used in this Section, "new benefit increase" means
20an increase in the amount of any benefit provided under this
21Article, or an expansion of the conditions of eligibility for
22any benefit under this Article, that results from an amendment
23to this Code that takes effect after the effective date of this
24amendatory Act of the 94th General Assembly. "New benefit
25increase", however, does not include any benefit increase

 

 

SB3073- 85 -LRB100 16948 RPS 32093 b

1resulting from the changes made to Article 1 or this Article by
2Public Act 100-23 or this amendatory Act of the 100th General
3Assembly this amendatory Act of the 100th General Assembly.
4    (b) Notwithstanding any other provision of this Code or any
5subsequent amendment to this Code, every new benefit increase
6is subject to this Section and shall be deemed to be granted
7only in conformance with and contingent upon compliance with
8the provisions of this Section.
9    (c) The Public Act enacting a new benefit increase must
10identify and provide for payment to the System of additional
11funding at least sufficient to fund the resulting annual
12increase in cost to the System as it accrues.
13    Every new benefit increase is contingent upon the General
14Assembly providing the additional funding required under this
15subsection. The Commission on Government Forecasting and
16Accountability shall analyze whether adequate additional
17funding has been provided for the new benefit increase and
18shall report its analysis to the Public Pension Division of the
19Department of Insurance. A new benefit increase created by a
20Public Act that does not include the additional funding
21required under this subsection is null and void. If the Public
22Pension Division determines that the additional funding
23provided for a new benefit increase under this subsection is or
24has become inadequate, it may so certify to the Governor and
25the State Comptroller and, in the absence of corrective action
26by the General Assembly, the new benefit increase shall expire

 

 

SB3073- 86 -LRB100 16948 RPS 32093 b

1at the end of the fiscal year in which the certification is
2made.
3    (d) Every new benefit increase shall expire 5 years after
4its effective date or on such earlier date as may be specified
5in the language enacting the new benefit increase or provided
6under subsection (c). This does not prevent the General
7Assembly from extending or re-creating a new benefit increase
8by law.
9    (e) Except as otherwise provided in the language creating
10the new benefit increase, a new benefit increase that expires
11under this Section continues to apply to persons who applied
12and qualified for the affected benefit while the new benefit
13increase was in effect and to the affected beneficiaries and
14alternate payees of such persons, but does not apply to any
15other person, including without limitation a person who
16continues in service after the expiration date and did not
17apply and qualify for the affected benefit while the new
18benefit increase was in effect.
19(Source: P.A. 100-23, eff. 7-6-17.)
 
20    (40 ILCS 5/16-190.5 new)
21    Sec. 16-190.5. Accelerated pension benefit payment.
22    (a) As used in this Section:
23    "Eligible person" means a person who:
24        (1) has terminated service;
25        (2) has accrued sufficient service credit to be

 

 

SB3073- 87 -LRB100 16948 RPS 32093 b

1    eligible to receive a retirement annuity under this
2    Article;
3        (3) has not received any retirement annuity under this
4    Article; and
5        (4) does not have a QILDRO in effect against him or her
6    under this Article.
7    "Pension benefit" means the benefits under this Article, or
8Article 1 as it relates to those benefits, including any
9anticipated annual increases, that an eligible person is
10entitled to upon attainment of the applicable retirement age.
11"Pension benefit" also includes applicable survivor's or
12disability benefits.
13    (b) Before January 1, 2019, and annually thereafter, the
14System shall calculate, using actuarial tables and other
15assumptions adopted by the Board, the net present value of
16pension benefits for each eligible person and shall offer each
17eligible person the opportunity to irrevocably elect to receive
18an amount determined by the System to be equal to 70% of the
19net present value of his or her pension benefits in lieu of
20receiving any pension benefit. The offer shall specify the
21dollar amount that the eligible person will receive if he or
22she so elects and shall expire when a subsequent offer is made
23to the eligible person or when the System determines that 10%
24of eligible persons in that year have made the election under
25this subsection, whichever occurs first. The System shall make
26a good faith effort to contact every eligible person to notify

 

 

SB3073- 88 -LRB100 16948 RPS 32093 b

1him or her of the election and of the amount of the accelerated
2pension benefit payment.
3    Until the System determines that 10% of eligible persons in
4that year have made the election under this subsection, an
5eligible person may irrevocably elect to receive an accelerated
6pension benefit payment in the amount that the System offers
7under this subsection in lieu of receiving any pension benefit.
8A person who elects to receive an accelerated pension benefit
9payment under this Section may not elect to proceed under the
10Retirement Systems Reciprocal Act with respect to service under
11this Article.
12    (c) A person's credits and creditable service under this
13Article shall be terminated upon the person's receipt of an
14accelerated pension benefit payment under this Section, and no
15other benefit shall be paid under this Article based on those
16terminated credits and creditable service, including any
17retirement, survivor, or other benefit or refund; except that
18to the extent that participation, benefits, or premiums under
19the State Employees Group Insurance Act of 1971 are based on
20the amount of service credit, the terminated service credit
21shall be used for that purpose.
22    (d) If a person who has received an accelerated pension
23benefit payment under this Section returns to active service
24under this Article, then:
25        (1) Any benefits under the System earned as a result of
26    that return to active service shall be based solely on the

 

 

SB3073- 89 -LRB100 16948 RPS 32093 b

1    person's credits and creditable service arising from the
2    return to active service.
3        (2) The accelerated pension benefit payment may not be
4    repaid to the System, and the terminated credits and
5    creditable service may not under any circumstances be
6    reinstated.
7    (e) As a condition of receiving an accelerated pension
8benefit payment, an eligible person must have another
9retirement plan or account qualified under the Internal Revenue
10Code of 1986, as amended, for the accelerated pension benefit
11payment to be rolled into. The accelerated pension benefit
12payment under this Section may be subject to withholding or
13payment of applicable taxes, but to the extent permitted by
14federal law, a person who receives an accelerated pension
15benefit payment under this Section must direct the System to
16pay all of that payment as a rollover into another retirement
17plan or account qualified under the Internal Revenue Code of
181986, as amended.
19    (f) Before January 1, 2020 and every January 1 thereafter,
20the Board shall certify to the Illinois Finance Authority and
21the General Assembly the amount by which the total amount of
22accelerated pension benefit payments made under this Section
23exceed the amount appropriated to the System for the purpose of
24making those payments.
25    (g) The Board shall adopt any rules necessary to implement
26this Section.

 

 

SB3073- 90 -LRB100 16948 RPS 32093 b

1    (h) No provision of this Section shall be interpreted in a
2way that would cause the applicable System to cease to be a
3qualified plan under the Internal Revenue Code of 1986.
4    (i) Notwithstanding any other provision of this Section, in
5no case shall the total amount of accelerated pension benefit
6payments paid under this Section, Section 14-147.5, and Section
715-185.5 cause the Illinois Finance Authority to issue more
8than the $250,000,000 of State Pension Obligation Acceleration
9Bonds authorized in subsection (c-5) of Section 801-40 of the
10Illinois Finance Authority Act.
 
11    (40 ILCS 5/16-203)
12    Sec. 16-203. Application and expiration of new benefit
13increases.
14    (a) As used in this Section, "new benefit increase" means
15an increase in the amount of any benefit provided under this
16Article, or an expansion of the conditions of eligibility for
17any benefit under this Article, that results from an amendment
18to this Code that takes effect after June 1, 2005 (the
19effective date of Public Act 94-4). "New benefit increase",
20however, does not include any benefit increase resulting from
21the changes made to Article 1 or this Article by Public Act
2295-910, Public Act 100-23, or this amendatory Act of the 100th
23General Assembly or this amendatory Act of the 100th General
24Assembly.
25    (b) Notwithstanding any other provision of this Code or any

 

 

SB3073- 91 -LRB100 16948 RPS 32093 b

1subsequent amendment to this Code, every new benefit increase
2is subject to this Section and shall be deemed to be granted
3only in conformance with and contingent upon compliance with
4the provisions of this Section.
5    (c) The Public Act enacting a new benefit increase must
6identify and provide for payment to the System of additional
7funding at least sufficient to fund the resulting annual
8increase in cost to the System as it accrues.
9    Every new benefit increase is contingent upon the General
10Assembly providing the additional funding required under this
11subsection. The Commission on Government Forecasting and
12Accountability shall analyze whether adequate additional
13funding has been provided for the new benefit increase and
14shall report its analysis to the Public Pension Division of the
15Department of Insurance. A new benefit increase created by a
16Public Act that does not include the additional funding
17required under this subsection is null and void. If the Public
18Pension Division determines that the additional funding
19provided for a new benefit increase under this subsection is or
20has become inadequate, it may so certify to the Governor and
21the State Comptroller and, in the absence of corrective action
22by the General Assembly, the new benefit increase shall expire
23at the end of the fiscal year in which the certification is
24made.
25    (d) Every new benefit increase shall expire 5 years after
26its effective date or on such earlier date as may be specified

 

 

SB3073- 92 -LRB100 16948 RPS 32093 b

1in the language enacting the new benefit increase or provided
2under subsection (c). This does not prevent the General
3Assembly from extending or re-creating a new benefit increase
4by law.
5    (e) Except as otherwise provided in the language creating
6the new benefit increase, a new benefit increase that expires
7under this Section continues to apply to persons who applied
8and qualified for the affected benefit while the new benefit
9increase was in effect and to the affected beneficiaries and
10alternate payees of such persons, but does not apply to any
11other person, including without limitation a person who
12continues in service after the expiration date and did not
13apply and qualify for the affected benefit while the new
14benefit increase was in effect.
15(Source: P.A. 100-23, eff. 7-6-17.)
 
16    Section 30. The State Pension Funds Continuing
17Appropriation Act is amended by adding Section 1.9 as follows:
 
18    (40 ILCS 15/1.9 new)
19    Sec. 1.9. Appropriations for State Pension Obligation
20Acceleration Bonds. If for any reason the aggregate
21appropriations made available are insufficient to meet the
22levels required for the payment of principal and interest due
23on State Pension Obligation Acceleration Bonds under Section
247.7 of the General Obligation Bond Act, this Section shall

 

 

SB3073- 93 -LRB100 16948 RPS 32093 b

1constitute a continuing appropriation of all amounts necessary
2for those purposes.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.

 

 

SB3073- 94 -LRB100 16948 RPS 32093 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 375/3from Ch. 127, par. 523
4    5 ILCS 375/10from Ch. 127, par. 530
5    20 ILCS 3501/801-40
6    30 ILCS 105/5.886 new
7    30 ILCS 330/2from Ch. 127, par. 652
8    30 ILCS 330/2.5
9    30 ILCS 330/7.7 new
10    30 ILCS 330/9from Ch. 127, par. 659
11    30 ILCS 330/11from Ch. 127, par. 661
12    30 ILCS 330/12from Ch. 127, par. 662
13    30 ILCS 330/13from Ch. 127, par. 663
14    40 ILCS 5/14-147.5 new
15    40 ILCS 5/14-152.1
16    40 ILCS 5/15-185.5 new
17    40 ILCS 5/15-198
18    40 ILCS 5/16-190.5 new
19    40 ILCS 5/16-203
20    40 ILCS 15/1.9 new