Sen. Paul Schimpf

Filed: 3/9/2018

 

 


 

 


 
10000SB3073sam001LRB100 16948 RPS 36635 a

1
AMENDMENT TO SENATE BILL 3073

2    AMENDMENT NO. ______. Amend Senate Bill 3073 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1administration executed with the Department.
2    (b) "Annuitant" means (1) an employee who retires, or has
3retired, on or after January 1, 1966 on an immediate annuity
4under the provisions of Articles 2, 14 (including an employee
5who has elected to receive an alternative retirement
6cancellation payment under Section 14-108.5 of the Illinois
7Pension Code in lieu of an annuity or who meets the criteria
8for retirement, but in lieu of receiving an annuity under that
9Article has elected to receive an accelerated pension benefit
10payment under Section 14-147.5 of that Article), 15 (including
11an employee who has retired under the optional retirement
12program established under Section 15-158.2 or who meets the
13criteria for retirement, but in lieu of receiving an annuity
14under that Article has elected to receive an accelerated
15pension benefit payment under Section 15-185.5 of the Article),
16paragraphs (2), (3), or (5) of Section 16-106 (including an
17employee who meets the criteria for retirement, but in lieu of
18receiving an annuity under that Article has elected to receive
19an accelerated pension benefit payment under Section 16-190.5
20of the Illinois Pension Code), or Article 18 of the Illinois
21Pension Code; (2) any person who was receiving group insurance
22coverage under this Act as of March 31, 1978 by reason of his
23status as an annuitant, even though the annuity in relation to
24which such coverage was provided is a proportional annuity
25based on less than the minimum period of service required for a
26retirement annuity in the system involved; (3) any person not

 

 

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1otherwise covered by this Act who has retired as a
2participating member under Article 2 of the Illinois Pension
3Code but is ineligible for the retirement annuity under Section
42-119 of the Illinois Pension Code; (4) the spouse of any
5person who is receiving a retirement annuity under Article 18
6of the Illinois Pension Code and who is covered under a group
7health insurance program sponsored by a governmental employer
8other than the State of Illinois and who has irrevocably
9elected to waive his or her coverage under this Act and to have
10his or her spouse considered as the "annuitant" under this Act
11and not as a "dependent"; or (5) an employee who retires, or
12has retired, from a qualified position, as determined according
13to rules promulgated by the Director, under a qualified local
14government, a qualified rehabilitation facility, a qualified
15domestic violence shelter or service, or a qualified child
16advocacy center. (For definition of "retired employee", see (p)
17post).
18    (b-5) (Blank).
19    (b-6) (Blank).
20    (b-7) (Blank).
21    (c) "Carrier" means (1) an insurance company, a corporation
22organized under the Limited Health Service Organization Act or
23the Voluntary Health Services Plan Act, a partnership, or other
24nongovernmental organization, which is authorized to do group
25life or group health insurance business in Illinois, or (2) the
26State of Illinois as a self-insurer.

 

 

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1    (d) "Compensation" means salary or wages payable on a
2regular payroll by the State Treasurer on a warrant of the
3State Comptroller out of any State, trust or federal fund, or
4by the Governor of the State through a disbursing officer of
5the State out of a trust or out of federal funds, or by any
6Department out of State, trust, federal or other funds held by
7the State Treasurer or the Department, to any person for
8personal services currently performed, and ordinary or
9accidental disability benefits under Articles 2, 14, 15
10(including ordinary or accidental disability benefits under
11the optional retirement program established under Section
1215-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
13Article 18 of the Illinois Pension Code, for disability
14incurred after January 1, 1966, or benefits payable under the
15Workers' Compensation or Occupational Diseases Act or benefits
16payable under a sick pay plan established in accordance with
17Section 36 of the State Finance Act. "Compensation" also means
18salary or wages paid to an employee of any qualified local
19government, qualified rehabilitation facility, qualified
20domestic violence shelter or service, or qualified child
21advocacy center.
22    (e) "Commission" means the State Employees Group Insurance
23Advisory Commission authorized by this Act. Commencing July 1,
241984, "Commission" as used in this Act means the Commission on
25Government Forecasting and Accountability as established by
26the Legislative Commission Reorganization Act of 1984.

 

 

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1    (f) "Contributory", when referred to as contributory
2coverage, shall mean optional coverages or benefits elected by
3the member toward the cost of which such member makes
4contribution, or which are funded in whole or in part through
5the acceptance of a reduction in earnings or the foregoing of
6an increase in earnings by an employee, as distinguished from
7noncontributory coverage or benefits which are paid entirely by
8the State of Illinois without reduction of the member's salary.
9    (g) "Department" means any department, institution, board,
10commission, officer, court or any agency of the State
11government receiving appropriations and having power to
12certify payrolls to the Comptroller authorizing payments of
13salary and wages against such appropriations as are made by the
14General Assembly from any State fund, or against trust funds
15held by the State Treasurer and includes boards of trustees of
16the retirement systems created by Articles 2, 14, 15, 16 and 18
17of the Illinois Pension Code. "Department" also includes the
18Illinois Comprehensive Health Insurance Board, the Board of
19Examiners established under the Illinois Public Accounting
20Act, and the Illinois Finance Authority.
21    (h) "Dependent", when the term is used in the context of
22the health and life plan, means a member's spouse and any child
23(1) from birth to age 26 including an adopted child, a child
24who lives with the member from the time of the placement for
25adoption until entry of an order of adoption, a stepchild or
26adjudicated child, or a child who lives with the member if such

 

 

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1member is a court appointed guardian of the child or (2) age 19
2or over who has a mental or physical disability from a cause
3originating prior to the age of 19 (age 26 if enrolled as an
4adult child dependent). For the health plan only, the term
5"dependent" also includes (1) any person enrolled prior to the
6effective date of this Section who is dependent upon the member
7to the extent that the member may claim such person as a
8dependent for income tax deduction purposes and (2) any person
9who has received after June 30, 2000 an organ transplant and
10who is financially dependent upon the member and eligible to be
11claimed as a dependent for income tax purposes. A member
12requesting to cover any dependent must provide documentation as
13requested by the Department of Central Management Services and
14file with the Department any and all forms required by the
15Department.
16    (i) "Director" means the Director of the Illinois
17Department of Central Management Services.
18    (j) "Eligibility period" means the period of time a member
19has to elect enrollment in programs or to select benefits
20without regard to age, sex or health.
21    (k) "Employee" means and includes each officer or employee
22in the service of a department who (1) receives his
23compensation for service rendered to the department on a
24warrant issued pursuant to a payroll certified by a department
25or on a warrant or check issued and drawn by a department upon
26a trust, federal or other fund or on a warrant issued pursuant

 

 

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1to a payroll certified by an elected or duly appointed officer
2of the State or who receives payment of the performance of
3personal services on a warrant issued pursuant to a payroll
4certified by a Department and drawn by the Comptroller upon the
5State Treasurer against appropriations made by the General
6Assembly from any fund or against trust funds held by the State
7Treasurer, and (2) is employed full-time or part-time in a
8position normally requiring actual performance of duty during
9not less than 1/2 of a normal work period, as established by
10the Director in cooperation with each department, except that
11persons elected by popular vote will be considered employees
12during the entire term for which they are elected regardless of
13hours devoted to the service of the State, and (3) except that
14"employee" does not include any person who is not eligible by
15reason of such person's employment to participate in one of the
16State retirement systems under Articles 2, 14, 15 (either the
17regular Article 15 system or the optional retirement program
18established under Section 15-158.2) or 18, or under paragraph
19(2), (3), or (5) of Section 16-106, of the Illinois Pension
20Code, but such term does include persons who are employed
21during the 6 month qualifying period under Article 14 of the
22Illinois Pension Code. Such term also includes any person who
23(1) after January 1, 1966, is receiving ordinary or accidental
24disability benefits under Articles 2, 14, 15 (including
25ordinary or accidental disability benefits under the optional
26retirement program established under Section 15-158.2),

 

 

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1paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
2the Illinois Pension Code, for disability incurred after
3January 1, 1966, (2) receives total permanent or total
4temporary disability under the Workers' Compensation Act or
5Occupational Disease Act as a result of injuries sustained or
6illness contracted in the course of employment with the State
7of Illinois, or (3) is not otherwise covered under this Act and
8has retired as a participating member under Article 2 of the
9Illinois Pension Code but is ineligible for the retirement
10annuity under Section 2-119 of the Illinois Pension Code.
11However, a person who satisfies the criteria of the foregoing
12definition of "employee" except that such person is made
13ineligible to participate in the State Universities Retirement
14System by clause (4) of subsection (a) of Section 15-107 of the
15Illinois Pension Code is also an "employee" for the purposes of
16this Act. "Employee" also includes any person receiving or
17eligible for benefits under a sick pay plan established in
18accordance with Section 36 of the State Finance Act. "Employee"
19also includes (i) each officer or employee in the service of a
20qualified local government, including persons appointed as
21trustees of sanitary districts regardless of hours devoted to
22the service of the sanitary district, (ii) each employee in the
23service of a qualified rehabilitation facility, (iii) each
24full-time employee in the service of a qualified domestic
25violence shelter or service, and (iv) each full-time employee
26in the service of a qualified child advocacy center, as

 

 

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1determined according to rules promulgated by the Director.
2    (l) "Member" means an employee, annuitant, retired
3employee or survivor. In the case of an annuitant or retired
4employee who first becomes an annuitant or retired employee on
5or after the effective date of this amendatory Act of the 97th
6General Assembly, the individual must meet the minimum vesting
7requirements of the applicable retirement system in order to be
8eligible for group insurance benefits under that system. In the
9case of a survivor who first becomes a survivor on or after the
10effective date of this amendatory Act of the 97th General
11Assembly, the deceased employee, annuitant, or retired
12employee upon whom the annuity is based must have been eligible
13to participate in the group insurance system under the
14applicable retirement system in order for the survivor to be
15eligible for group insurance benefits under that system.
16    (m) "Optional coverages or benefits" means those coverages
17or benefits available to the member on his or her voluntary
18election, and at his or her own expense.
19    (n) "Program" means the group life insurance, health
20benefits and other employee benefits designed and contracted
21for by the Director under this Act.
22    (o) "Health plan" means a health benefits program offered
23by the State of Illinois for persons eligible for the plan.
24    (p) "Retired employee" means any person who would be an
25annuitant as that term is defined herein but for the fact that
26such person retired prior to January 1, 1966. Such term also

 

 

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1includes any person formerly employed by the University of
2Illinois in the Cooperative Extension Service who would be an
3annuitant but for the fact that such person was made ineligible
4to participate in the State Universities Retirement System by
5clause (4) of subsection (a) of Section 15-107 of the Illinois
6Pension Code.
7    (q) "Survivor" means a person receiving an annuity as a
8survivor of an employee or of an annuitant. "Survivor" also
9includes: (1) the surviving dependent of a person who satisfies
10the definition of "employee" except that such person is made
11ineligible to participate in the State Universities Retirement
12System by clause (4) of subsection (a) of Section 15-107 of the
13Illinois Pension Code; (2) the surviving dependent of any
14person formerly employed by the University of Illinois in the
15Cooperative Extension Service who would be an annuitant except
16for the fact that such person was made ineligible to
17participate in the State Universities Retirement System by
18clause (4) of subsection (a) of Section 15-107 of the Illinois
19Pension Code; and (3) the surviving dependent of a person who
20was an annuitant under this Act by virtue of receiving an
21alternative retirement cancellation payment under Section
2214-108.5 of the Illinois Pension Code.
23    (q-2) "SERS" means the State Employees' Retirement System
24of Illinois, created under Article 14 of the Illinois Pension
25Code.
26    (q-3) "SURS" means the State Universities Retirement

 

 

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1System, created under Article 15 of the Illinois Pension Code.
2    (q-4) "TRS" means the Teachers' Retirement System of the
3State of Illinois, created under Article 16 of the Illinois
4Pension Code.
5    (q-5) (Blank).
6    (q-6) (Blank).
7    (q-7) (Blank).
8    (r) "Medical services" means the services provided within
9the scope of their licenses by practitioners in all categories
10licensed under the Medical Practice Act of 1987.
11    (s) "Unit of local government" means any county,
12municipality, township, school district (including a
13combination of school districts under the Intergovernmental
14Cooperation Act), special district or other unit, designated as
15a unit of local government by law, which exercises limited
16governmental powers or powers in respect to limited
17governmental subjects, any not-for-profit association with a
18membership that primarily includes townships and township
19officials, that has duties that include provision of research
20service, dissemination of information, and other acts for the
21purpose of improving township government, and that is funded
22wholly or partly in accordance with Section 85-15 of the
23Township Code; any not-for-profit corporation or association,
24with a membership consisting primarily of municipalities, that
25operates its own utility system, and provides research,
26training, dissemination of information, or other acts to

 

 

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1promote cooperation between and among municipalities that
2provide utility services and for the advancement of the goals
3and purposes of its membership; the Southern Illinois
4Collegiate Common Market, which is a consortium of higher
5education institutions in Southern Illinois; the Illinois
6Association of Park Districts; and any hospital provider that
7is owned by a county that has 100 or fewer hospital beds and
8has not already joined the program. "Qualified local
9government" means a unit of local government approved by the
10Director and participating in a program created under
11subsection (i) of Section 10 of this Act.
12    (t) "Qualified rehabilitation facility" means any
13not-for-profit organization that is accredited by the
14Commission on Accreditation of Rehabilitation Facilities or
15certified by the Department of Human Services (as successor to
16the Department of Mental Health and Developmental
17Disabilities) to provide services to persons with disabilities
18and which receives funds from the State of Illinois for
19providing those services, approved by the Director and
20participating in a program created under subsection (j) of
21Section 10 of this Act.
22    (u) "Qualified domestic violence shelter or service" means
23any Illinois domestic violence shelter or service and its
24administrative offices funded by the Department of Human
25Services (as successor to the Illinois Department of Public
26Aid), approved by the Director and participating in a program

 

 

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

 

 

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1    (iii) age 19 or over who has a mental or physical
2    disability from a cause originating prior to the age of 19
3    (age 26 if enrolled as an adult child).
4    "TRS dependent beneficiary" does not include, as indicated
5under paragraph (2) of this subsection (w), a dependent of the
6survivor of a TRS benefit recipient who first becomes a
7dependent of a survivor of a TRS benefit recipient on or after
8the effective date of this amendatory Act of the 97th General
9Assembly unless that dependent would have been eligible for
10coverage as a dependent of the deceased TRS benefit recipient
11upon whom the survivor benefit is based.
12    (x) "Military leave" refers to individuals in basic
13training for reserves, special/advanced training, annual
14training, emergency call up, activation by the President of the
15United States, or any other training or duty in service to the
16United States Armed Forces.
17    (y) (Blank).
18    (z) "Community college benefit recipient" means a person
19who:
20        (1) is not a "member" as defined in this Section; and
21        (2) is receiving a monthly survivor's annuity or
22    retirement annuity under Article 15 of the Illinois Pension
23    Code; and
24        (3) either (i) was a full-time employee of a community
25    college district or an association of community college
26    boards created under the Public Community College Act

 

 

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1    (other than an employee whose last employer under Article
2    15 of the Illinois Pension Code was a community college
3    district subject to Article VII of the Public Community
4    College Act) and was eligible to participate in a group
5    health benefit plan as an employee during the time of
6    employment with a community college district (other than a
7    community college district subject to Article VII of the
8    Public Community College Act) or an association of
9    community college boards, or (ii) is the survivor of a
10    person described in item (i).
11    (aa) "Community college dependent beneficiary" means a
12person who:
13        (1) is not a "member" or "dependent" as defined in this
14    Section; and
15        (2) is a community college benefit recipient's: (A)
16    spouse, (B) dependent parent who is receiving at least half
17    of his or her support from the community college benefit
18    recipient, or (C) natural, step, adjudicated, or adopted
19    child who is (i) under age 26, or (ii) age 19 or over and
20    has a mental or physical disability from a cause
21    originating prior to the age of 19 (age 26 if enrolled as
22    an adult child).
23    "Community college dependent beneficiary" does not
24include, as indicated under paragraph (2) of this subsection
25(aa), a dependent of the survivor of a community college
26benefit recipient who first becomes a dependent of a survivor

 

 

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1of a community college benefit recipient on or after the
2effective date of this amendatory Act of the 97th General
3Assembly unless that dependent would have been eligible for
4coverage as a dependent of the deceased community college
5benefit recipient upon whom the survivor annuity is based.
6    (bb) "Qualified child advocacy center" means any Illinois
7child advocacy center and its administrative offices funded by
8the Department of Children and Family Services, as defined by
9the Children's Advocacy Center Act (55 ILCS 80/), approved by
10the Director and participating in a program created under
11subsection (n) of Section 10.
12    (cc) "Placement for adoption" means the assumption and
13retention by a member of a legal obligation for total or
14partial support of a child in anticipation of adoption of the
15child. The child's placement with the member terminates upon
16the termination of such legal obligation.
17(Source: P.A. 99-143, eff. 7-27-15; 100-355, eff. 1-1-18.)
 
18    (5 ILCS 375/10)  (from Ch. 127, par. 530)
19    Sec. 10. Contributions by the State and members.
20    (a) The State shall pay the cost of basic non-contributory
21group life insurance and, subject to member paid contributions
22set by the Department or required by this Section and except as
23provided in this Section, the basic program of group health
24benefits on each eligible member, except a member, not
25otherwise covered by this Act, who has retired as a

 

 

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1participating member under Article 2 of the Illinois Pension
2Code but is ineligible for the retirement annuity under Section
32-119 of the Illinois Pension Code, and part of each eligible
4member's and retired member's premiums for health insurance
5coverage for enrolled dependents as provided by Section 9. The
6State shall pay the cost of the basic program of group health
7benefits only after benefits are reduced by the amount of
8benefits covered by Medicare for all members and dependents who
9are eligible for benefits under Social Security or the Railroad
10Retirement system or who had sufficient Medicare-covered
11government employment, except that such reduction in benefits
12shall apply only to those members and dependents who (1) first
13become eligible for such Medicare coverage on or after July 1,
141992; or (2) are Medicare-eligible members or dependents of a
15local government unit which began participation in the program
16on or after July 1, 1992; or (3) remain eligible for, but no
17longer receive Medicare coverage which they had been receiving
18on or after July 1, 1992. The Department may determine the
19aggregate level of the State's contribution on the basis of
20actual cost of medical services adjusted for age, sex or
21geographic or other demographic characteristics which affect
22the costs of such programs.
23    The cost of participation in the basic program of group
24health benefits for the dependent or survivor of a living or
25deceased retired employee who was formerly employed by the
26University of Illinois in the Cooperative Extension Service and

 

 

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1would be an annuitant but for the fact that he or she was made
2ineligible to participate in the State Universities Retirement
3System by clause (4) of subsection (a) of Section 15-107 of the
4Illinois Pension Code shall not be greater than the cost of
5participation that would otherwise apply to that dependent or
6survivor if he or she were the dependent or survivor of an
7annuitant under the State Universities Retirement System.
8    (a-1) (Blank).
9    (a-2) (Blank).
10    (a-3) (Blank).
11    (a-4) (Blank).
12    (a-5) (Blank).
13    (a-6) (Blank).
14    (a-7) (Blank).
15    (a-8) Any annuitant, survivor, or retired employee may
16waive or terminate coverage in the program of group health
17benefits. Any such annuitant, survivor, or retired employee who
18has waived or terminated coverage may enroll or re-enroll in
19the program of group health benefits only during the annual
20benefit choice period, as determined by the Director; except
21that in the event of termination of coverage due to nonpayment
22of premiums, the annuitant, survivor, or retired employee may
23not re-enroll in the program.
24    (a-8.5) Beginning on the effective date of this amendatory
25Act of the 97th General Assembly, the Director of Central
26Management Services shall, on an annual basis, determine the

 

 

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1amount that the State shall contribute toward the basic program
2of group health benefits on behalf of annuitants (including
3individuals who (i) participated in the General Assembly
4Retirement System, the State Employees' Retirement System of
5Illinois, the State Universities Retirement System, the
6Teachers' Retirement System of the State of Illinois, or the
7Judges Retirement System of Illinois and (ii) qualify as
8annuitants under subsection (b) of Section 3 of this Act),
9survivors (including individuals who (i) receive an annuity as
10a survivor of an individual who participated in the General
11Assembly Retirement System, the State Employees' Retirement
12System of Illinois, the State Universities Retirement System,
13the Teachers' Retirement System of the State of Illinois, or
14the Judges Retirement System of Illinois and (ii) qualify as
15survivors under subsection (q) of Section 3 of this Act), and
16retired employees (as defined in subsection (p) of Section 3 of
17this Act). The remainder of the cost of coverage for each
18annuitant, survivor, or retired employee, as determined by the
19Director of Central Management Services, shall be the
20responsibility of that annuitant, survivor, or retired
21employee.
22    Contributions required of annuitants, survivors, and
23retired employees shall be the same for all retirement systems
24and shall also be based on whether an individual has made an
25election under Section 15-135.1 of the Illinois Pension Code.
26Contributions may be based on annuitants', survivors', or

 

 

10000SB3073sam001- 20 -LRB100 16948 RPS 36635 a

1retired employees' Medicare eligibility, but may not be based
2on Social Security eligibility.
3    (a-9) No later than May 1 of each calendar year, the
4Director of Central Management Services shall certify in
5writing to the Executive Secretary of the State Employees'
6Retirement System of Illinois the amounts of the Medicare
7supplement health care premiums and the amounts of the health
8care premiums for all other retirees who are not Medicare
9eligible.
10    A separate calculation of the premiums based upon the
11actual cost of each health care plan shall be so certified.
12    The Director of Central Management Services shall provide
13to the Executive Secretary of the State Employees' Retirement
14System of Illinois such information, statistics, and other data
15as he or she may require to review the premium amounts
16certified by the Director of Central Management Services.
17    The Department of Central Management Services, or any
18successor agency designated to procure healthcare contracts
19pursuant to this Act, is authorized to establish funds,
20separate accounts provided by any bank or banks as defined by
21the Illinois Banking Act, or separate accounts provided by any
22savings and loan association or associations as defined by the
23Illinois Savings and Loan Act of 1985 to be held by the
24Director, outside the State treasury, for the purpose of
25receiving the transfer of moneys from the Local Government
26Health Insurance Reserve Fund. The Department may promulgate

 

 

10000SB3073sam001- 21 -LRB100 16948 RPS 36635 a

1rules further defining the methodology for the transfers. Any
2interest earned by moneys in the funds or accounts shall inure
3to the Local Government Health Insurance Reserve Fund. The
4transferred moneys, and interest accrued thereon, shall be used
5exclusively for transfers to administrative service
6organizations or their financial institutions for payments of
7claims to claimants and providers under the self-insurance
8health plan. The transferred moneys, and interest accrued
9thereon, shall not be used for any other purpose including, but
10not limited to, reimbursement of administration fees due the
11administrative service organization pursuant to its contract
12or contracts with the Department.
13    (a-10) To the extent that participation, benefits, or
14premiums under this Act are based on a person's service credit
15under an Article of the Illinois Pension Code, service credit
16terminated in exchange for an accelerated pension benefit
17payment under Section 14-147.5, 15-185.5, or 16-190.5 of that
18Code shall be included in determining a person's service credit
19for the purposes of this Act.
20    (b) State employees who become eligible for this program on
21or after January 1, 1980 in positions normally requiring actual
22performance of duty not less than 1/2 of a normal work period
23but not equal to that of a normal work period, shall be given
24the option of participating in the available program. If the
25employee elects coverage, the State shall contribute on behalf
26of such employee to the cost of the employee's benefit and any

 

 

10000SB3073sam001- 22 -LRB100 16948 RPS 36635 a

1applicable dependent supplement, that sum which bears the same
2percentage as that percentage of time the employee regularly
3works when compared to normal work period.
4    (c) The basic non-contributory coverage from the basic
5program of group health benefits shall be continued for each
6employee not in pay status or on active service by reason of
7(1) leave of absence due to illness or injury, (2) authorized
8educational leave of absence or sabbatical leave, or (3)
9military leave. This coverage shall continue until expiration
10of authorized leave and return to active service, but not to
11exceed 24 months for leaves under item (1) or (2). This
1224-month limitation and the requirement of returning to active
13service shall not apply to persons receiving ordinary or
14accidental disability benefits or retirement benefits through
15the appropriate State retirement system or benefits under the
16Workers' Compensation or Occupational Disease Act.
17    (d) The basic group life insurance coverage shall continue,
18with full State contribution, where such person is (1) absent
19from active service by reason of disability arising from any
20cause other than self-inflicted, (2) on authorized educational
21leave of absence or sabbatical leave, or (3) on military leave.
22    (e) Where the person is in non-pay status for a period in
23excess of 30 days or on leave of absence, other than by reason
24of disability, educational or sabbatical leave, or military
25leave, such person may continue coverage only by making
26personal payment equal to the amount normally contributed by

 

 

10000SB3073sam001- 23 -LRB100 16948 RPS 36635 a

1the State on such person's behalf. Such payments and coverage
2may be continued: (1) until such time as the person returns to
3a status eligible for coverage at State expense, but not to
4exceed 24 months or (2) until such person's employment or
5annuitant status with the State is terminated (exclusive of any
6additional service imposed pursuant to law).
7    (f) The Department shall establish by rule the extent to
8which other employee benefits will continue for persons in
9non-pay status or who are not in active service.
10    (g) The State shall not pay the cost of the basic
11non-contributory group life insurance, program of health
12benefits and other employee benefits for members who are
13survivors as defined by paragraphs (1) and (2) of subsection
14(q) of Section 3 of this Act. The costs of benefits for these
15survivors shall be paid by the survivors or by the University
16of Illinois Cooperative Extension Service, or any combination
17thereof. However, the State shall pay the amount of the
18reduction in the cost of participation, if any, resulting from
19the amendment to subsection (a) made by this amendatory Act of
20the 91st General Assembly.
21    (h) Those persons occupying positions with any department
22as a result of emergency appointments pursuant to Section 8b.8
23of the Personnel Code who are not considered employees under
24this Act shall be given the option of participating in the
25programs of group life insurance, health benefits and other
26employee benefits. Such persons electing coverage may

 

 

10000SB3073sam001- 24 -LRB100 16948 RPS 36635 a

1participate only by making payment equal to the amount normally
2contributed by the State for similarly situated employees. Such
3amounts shall be determined by the Director. Such payments and
4coverage may be continued until such time as the person becomes
5an employee pursuant to this Act or such person's appointment
6is terminated.
7    (i) Any unit of local government within the State of
8Illinois may apply to the Director to have its employees,
9annuitants, and their dependents provided group health
10coverage under this Act on a non-insured basis. To participate,
11a unit of local government must agree to enroll all of its
12employees, who may select coverage under either the State group
13health benefits plan or a health maintenance organization that
14has contracted with the State to be available as a health care
15provider for employees as defined in this Act. A unit of local
16government must remit the entire cost of providing coverage
17under the State group health benefits plan or, for coverage
18under a health maintenance organization, an amount determined
19by the Director based on an analysis of the sex, age,
20geographic location, or other relevant demographic variables
21for its employees, except that the unit of local government
22shall not be required to enroll those of its employees who are
23covered spouses or dependents under this plan or another group
24policy or plan providing health benefits as long as (1) an
25appropriate official from the unit of local government attests
26that each employee not enrolled is a covered spouse or

 

 

10000SB3073sam001- 25 -LRB100 16948 RPS 36635 a

1dependent under this plan or another group policy or plan, and
2(2) at least 50% of the employees are enrolled and the unit of
3local government remits the entire cost of providing coverage
4to those employees, except that a participating school district
5must have enrolled at least 50% of its full-time employees who
6have not waived coverage under the district's group health plan
7by participating in a component of the district's cafeteria
8plan. A participating school district is not required to enroll
9a full-time employee who has waived coverage under the
10district's health plan, provided that an appropriate official
11from the participating school district attests that the
12full-time employee has waived coverage by participating in a
13component of the district's cafeteria plan. For the purposes of
14this subsection, "participating school district" includes a
15unit of local government whose primary purpose is education as
16defined by the Department's rules.
17    Employees of a participating unit of local government who
18are not enrolled due to coverage under another group health
19policy or plan may enroll in the event of a qualifying change
20in status, special enrollment, special circumstance as defined
21by the Director, or during the annual Benefit Choice Period. A
22participating unit of local government may also elect to cover
23its annuitants. Dependent coverage shall be offered on an
24optional basis, with the costs paid by the unit of local
25government, its employees, or some combination of the two as
26determined by the unit of local government. The unit of local

 

 

10000SB3073sam001- 26 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 27 -LRB100 16948 RPS 36635 a

1under the State group health benefits plan. The Director may
2similarly determine the maximum monthly amount each unit of
3local government may contribute toward coverage of its
4employees' dependents under a health maintenance organization.
5    Monthly payments by the unit of local government or its
6employees for group health benefits plan or health maintenance
7organization coverage shall be deposited in the Local
8Government Health Insurance Reserve Fund.
9    The Local Government Health Insurance Reserve Fund is
10hereby created as a nonappropriated trust fund to be held
11outside the State Treasury, with the State Treasurer as
12custodian. The Local Government Health Insurance Reserve Fund
13shall be a continuing fund not subject to fiscal year
14limitations. The Local Government Health Insurance Reserve
15Fund is not subject to administrative charges or charge-backs,
16including but not limited to those authorized under Section 8h
17of the State Finance Act. All revenues arising from the
18administration of the health benefits program established
19under this Section shall be deposited into the Local Government
20Health Insurance Reserve Fund. Any interest earned on moneys in
21the Local Government Health Insurance Reserve Fund shall be
22deposited into the Fund. All expenditures from this Fund shall
23be used for payments for health care benefits for local
24government and rehabilitation facility employees, annuitants,
25and dependents, and to reimburse the Department or its
26administrative service organization for all expenses incurred

 

 

10000SB3073sam001- 28 -LRB100 16948 RPS 36635 a

1in the administration of benefits. No other State funds may be
2used for these purposes.
3    A local government employer's participation or desire to
4participate in a program created under this subsection shall
5not limit that employer's duty to bargain with the
6representative of any collective bargaining unit of its
7employees.
8    (j) Any rehabilitation facility within the State of
9Illinois may apply to the Director to have its employees,
10annuitants, and their eligible dependents provided group
11health coverage under this Act on a non-insured basis. To
12participate, a rehabilitation facility must agree to enroll all
13of its employees and remit the entire cost of providing such
14coverage for its employees, except that the rehabilitation
15facility shall not be required to enroll those of its employees
16who are covered spouses or dependents under this plan or
17another group policy or plan providing health benefits as long
18as (1) an appropriate official from the rehabilitation facility
19attests that 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
22rehabilitation facility remits the entire cost of providing
23coverage to those employees. Employees of a participating
24rehabilitation facility who are not enrolled due to coverage
25under another group health policy or plan may enroll in the
26event of a qualifying change in status, special enrollment,

 

 

10000SB3073sam001- 29 -LRB100 16948 RPS 36635 a

1special circumstance as defined by the Director, or during the
2annual Benefit Choice Period. A participating rehabilitation
3facility may also elect to cover its annuitants. Dependent
4coverage shall be offered on an optional basis, with the costs
5paid by the rehabilitation facility, its employees, or some
6combination of the 2 as determined by the rehabilitation
7facility. The rehabilitation facility shall be responsible for
8timely collection and transmission of dependent premiums.
9    The Director shall annually determine quarterly rates of
10payment, subject to the following constraints:
11        (1) In the first year of coverage, the rates shall be
12    equal to the amount normally charged to State employees for
13    elected optional coverages or for enrolled dependents
14    coverages or other contributory coverages on behalf of its
15    employees, adjusted for differences between State
16    employees and employees of the rehabilitation facility in
17    age, sex, geographic location or other relevant
18    demographic variables, plus an amount sufficient to pay for
19    the additional administrative costs of providing coverage
20    to employees of the rehabilitation facility and their
21    dependents.
22        (2) In subsequent years, a further adjustment shall be
23    made to reflect the actual prior years' claims experience
24    of the employees of the rehabilitation facility.
25    Monthly payments by the rehabilitation facility or its
26employees for group health benefits shall be deposited in the

 

 

10000SB3073sam001- 30 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 31 -LRB100 16948 RPS 36635 a

1shelter or service shall be responsible for timely collection
2and transmission of dependent premiums.
3    The Director shall annually determine rates of payment,
4subject to the following constraints:
5        (1) In the first year of coverage, the rates shall be
6    equal to the amount normally charged to State employees for
7    elected optional coverages or for enrolled dependents
8    coverages or other contributory coverages on behalf of its
9    employees, adjusted for differences between State
10    employees and employees of the domestic violence shelter or
11    service in age, sex, geographic location or other relevant
12    demographic variables, plus an amount sufficient to pay for
13    the additional administrative costs of providing coverage
14    to employees of the domestic violence shelter or service
15    and their dependents.
16        (2) In subsequent years, a further adjustment shall be
17    made to reflect the actual prior years' claims experience
18    of the employees of the domestic violence shelter or
19    service.
20    Monthly payments by the domestic violence shelter or
21service or its employees for group health insurance shall be
22deposited in the Local Government Health Insurance Reserve
23Fund.
24    (l) A public community college or entity organized pursuant
25to the Public Community College Act may apply to the Director
26initially to have only annuitants not covered prior to July 1,

 

 

10000SB3073sam001- 32 -LRB100 16948 RPS 36635 a

11992 by the district's health plan provided health coverage
2under this Act on a non-insured basis. The community college
3must execute a 2-year contract to participate in the Local
4Government Health Plan. Any annuitant may enroll in the event
5of a qualifying change in status, special enrollment, special
6circumstance as defined by the Director, or during the annual
7Benefit Choice Period.
8    The Director shall annually determine monthly rates of
9payment subject to the following constraints: for those
10community colleges with annuitants only enrolled, first year
11rates shall be equal to the average cost to cover claims for a
12State member adjusted for demographics, Medicare
13participation, and other factors; and in the second year, a
14further adjustment of rates shall be made to reflect the actual
15first year's claims experience of the covered annuitants.
16    (l-5) The provisions of subsection (l) become inoperative
17on July 1, 1999.
18    (m) The Director shall adopt any rules deemed necessary for
19implementation of this amendatory Act of 1989 (Public Act
2086-978).
21    (n) Any child advocacy center within the State of Illinois
22may apply to the Director to have its employees, annuitants,
23and their dependents provided group health coverage under this
24Act on a non-insured basis. To participate, a child advocacy
25center must agree to enroll all of its employees and pay the
26entire cost of providing coverage for its employees. The child

 

 

10000SB3073sam001- 33 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 34 -LRB100 16948 RPS 36635 a

1    employees, adjusted for differences between State
2    employees and employees of the child advocacy center in
3    age, sex, geographic location, or other relevant
4    demographic variables, plus an amount sufficient to pay for
5    the additional administrative costs of providing coverage
6    to employees of the child advocacy center and their
7    dependents.
8        (2) In subsequent years, a further adjustment shall be
9    made to reflect the actual prior years' claims experience
10    of the employees of the child advocacy center.
11    Monthly payments by the child advocacy center or its
12employees for group health insurance shall be deposited into
13the Local Government Health Insurance Reserve Fund.
14(Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13.)
 
15    Section 10. The Illinois Finance Authority Act is amended
16by changing Section 801-40 as follows:
 
17    (20 ILCS 3501/801-40)
18    Sec. 801-40. In addition to the powers otherwise authorized
19by law and in addition to the foregoing general corporate
20powers, the Authority shall also have the following additional
21specific powers to be exercised in furtherance of the purposes
22of this Act.
23    (a) The Authority shall have power (i) to accept grants,
24loans or appropriations from the federal government or the

 

 

10000SB3073sam001- 35 -LRB100 16948 RPS 36635 a

1State, or any agency or instrumentality thereof, to be used for
2the operating expenses of the Authority, or for any purposes of
3the Authority, including the making of direct loans of such
4funds with respect to projects, and (ii) to enter into any
5agreement with the federal government or the State, or any
6agency or instrumentality thereof, in relationship to such
7grants, loans or appropriations.
8    (b) The Authority shall have power to procure and enter
9into contracts for any type of insurance and indemnity
10agreements covering loss or damage to property from any cause,
11including loss of use and occupancy, or covering any other
12insurable risk.
13    (c) The Authority shall have the continuing power to issue
14bonds for its corporate purposes. Bonds may be issued by the
15Authority in one or more series and may provide for the payment
16of any interest deemed necessary on such bonds, of the costs of
17issuance of such bonds, of any premium on any insurance, or of
18the cost of any guarantees, letters of credit or other similar
19documents, may provide for the funding of the reserves deemed
20necessary in connection with such bonds, and may provide for
21the refunding or advance refunding of any bonds or for accounts
22deemed necessary in connection with any purpose of the
23Authority. The bonds may bear interest payable at any time or
24times and at any rate or rates, notwithstanding any other
25provision of law to the contrary, and such rate or rates may be
26established by an index or formula which may be implemented or

 

 

10000SB3073sam001- 36 -LRB100 16948 RPS 36635 a

1established by persons appointed or retained therefor by the
2Authority, or may bear no interest or may bear interest payable
3at maturity or upon redemption prior to maturity, may bear such
4date or dates, may be payable at such time or times and at such
5place or places, may mature at any time or times not later than
640 years from the date of issuance, may be sold at public or
7private sale at such time or times and at such price or prices,
8may be secured by such pledges, reserves, guarantees, letters
9of credit, insurance contracts or other similar credit support
10or liquidity instruments, may be executed in such manner, may
11be subject to redemption prior to maturity, may provide for the
12registration of the bonds, and may be subject to such other
13terms and conditions all as may be provided by the resolution
14or indenture authorizing the issuance of such bonds. The holder
15or holders of any bonds issued by the Authority may bring suits
16at law or proceedings in equity to compel the performance and
17observance by any person or by the Authority or any of its
18agents or employees of any contract or covenant made with the
19holders of such bonds and to compel such person or the
20Authority and any of its agents or employees to perform any
21duties required to be performed for the benefit of the holders
22of any such bonds by the provision of the resolution
23authorizing their issuance, and to enjoin such person or the
24Authority and any of its agents or employees from taking any
25action in conflict with any such contract or covenant.
26Notwithstanding the form and tenor of any such bonds and in the

 

 

10000SB3073sam001- 37 -LRB100 16948 RPS 36635 a

1absence of any express recital on the face thereof that it is
2non-negotiable, all such bonds shall be negotiable
3instruments. Pending the preparation and execution of any such
4bonds, temporary bonds may be issued as provided by the
5resolution. The bonds shall be sold by the Authority in such
6manner as it shall determine. The bonds may be secured as
7provided in the authorizing resolution by the receipts,
8revenues, income and other available funds of the Authority and
9by any amounts derived by the Authority from the loan agreement
10or lease agreement with respect to the project or projects; and
11bonds may be issued as general obligations of the Authority
12payable from such revenues, funds and obligations of the
13Authority as the bond resolution shall provide, or may be
14issued as limited obligations with a claim for payment solely
15from such revenues, funds and obligations as the bond
16resolution shall provide. The Authority may grant a specific
17pledge or assignment of and lien on or security interest in
18such rights, revenues, income, or amounts and may grant a
19specific pledge or assignment of and lien on or security
20interest in any reserves, funds or accounts established in the
21resolution authorizing the issuance of bonds. Any such pledge,
22assignment, lien or security interest for the benefit of the
23holders of the Authority's bonds shall be valid and binding
24from the time the bonds are issued without any physical
25delivery or further act, and shall be valid and binding as
26against and prior to the claims of all other parties having

 

 

10000SB3073sam001- 38 -LRB100 16948 RPS 36635 a

1claims against the Authority or any other person irrespective
2of whether the other parties have notice of the pledge,
3assignment, lien or security interest. As evidence of such
4pledge, assignment, lien and security interest, the Authority
5may execute and deliver a mortgage, trust agreement, indenture
6or security agreement or an assignment thereof. A remedy for
7any breach or default of the terms of any such agreement by the
8Authority may be by mandamus proceedings in any court of
9competent jurisdiction to compel the performance and
10compliance therewith, but the agreement may prescribe by whom
11or on whose behalf such action may be instituted. It is
12expressly understood that the Authority may, but need not,
13acquire title to any project with respect to which it exercises
14its authority.
15    (c-5) The Authority shall have the power to issue State
16Pension Obligation Acceleration Bonds if in any fiscal year the
17amount appropriated for all accelerated pension benefit
18payments is less than the amount required for those payments.
19The proceeds from the State Pension Obligation Acceleration
20Bonds issued under this subsection may only be used to pay for
21accelerated pension benefit payments for the fiscal year in
22which the State Pension Obligation Acceleration Bonds are
23issued.
24    The Authority shall not have outstanding at any one time
25State Pension Obligation Acceleration Bonds for any of the
26purposes of this subsection in an aggregate principal amount

 

 

10000SB3073sam001- 39 -LRB100 16948 RPS 36635 a

1exceeding $250,000,000, excluding bonds issued to refund
2outstanding State Pension Obligation Acceleration Bonds.
3    (d) With respect to the powers granted by this Act, the
4Authority may adopt rules and regulations prescribing the
5procedures by which persons may apply for assistance under this
6Act. Nothing herein shall be deemed to preclude the Authority,
7prior to the filing of any formal application, from conducting
8preliminary discussions and investigations with respect to the
9subject matter of any prospective application.
10    (e) The Authority shall have power to acquire by purchase,
11lease, gift or otherwise any property or rights therein from
12any person useful for its purposes, whether improved for the
13purposes of any prospective project, or unimproved. The
14Authority may also accept any donation of funds for its
15purposes from any such source. The Authority shall have no
16independent power of condemnation but may acquire any property
17or rights therein obtained upon condemnation by any other
18authority, governmental entity or unit of local government with
19such power.
20    (f) The Authority shall have power to develop, construct
21and improve either under its own direction, or through
22collaboration with any approved applicant, or to acquire
23through purchase or otherwise, any project, using for such
24purpose the proceeds derived from the sale of its bonds or from
25governmental loans or grants, and to hold title in the name of
26the Authority to such projects.

 

 

10000SB3073sam001- 40 -LRB100 16948 RPS 36635 a

1    (g) The Authority shall have power to lease pursuant to a
2lease agreement any project so developed and constructed or
3acquired to the approved tenant on such terms and conditions as
4may be appropriate to further the purposes of this Act and to
5maintain the credit of the Authority. Any such lease may
6provide for either the Authority or the approved tenant to
7assume initially, in whole or in part, the costs of
8maintenance, repair and improvements during the leasehold
9period. In no case, however, shall the total rentals from any
10project during any initial leasehold period or the total loan
11repayments to be made pursuant to any loan agreement, be less
12than an amount necessary to return over such lease or loan
13period (1) all costs incurred in connection with the
14development, construction, acquisition or improvement of the
15project and for repair, maintenance and improvements thereto
16during the period of the lease or loan; provided, however, that
17the rentals or loan repayments need not include costs met
18through the use of funds other than those obtained by the
19Authority through the issuance of its bonds or governmental
20loans; (2) a reasonable percentage additive to be agreed upon
21by the Authority and the borrower or tenant to cover a properly
22allocable portion of the Authority's general expenses,
23including, but not limited to, administrative expenses,
24salaries and general insurance, and (3) an amount sufficient to
25pay when due all principal of, interest and premium, if any on,
26any bonds issued by the Authority with respect to the project.

 

 

10000SB3073sam001- 41 -LRB100 16948 RPS 36635 a

1The portion of total rentals payable under clause (3) of this
2subsection (g) shall be deposited in such special accounts,
3including all sinking funds, acquisition or construction
4funds, debt service and other funds as provided by any
5resolution, mortgage or trust agreement of the Authority
6pursuant to which any bond is issued.
7    (h) The Authority has the power, upon the termination of
8any leasehold period of any project, to sell or lease for a
9further term or terms such project on such terms and conditions
10as the Authority shall deem reasonable and consistent with the
11purposes of the Act. The net proceeds from all such sales and
12the revenues or income from such leases shall be used to
13satisfy any indebtedness of the Authority with respect to such
14project and any balance may be used to pay any expenses of the
15Authority or be used for the further development, construction,
16acquisition or improvement of projects. In the event any
17project is vacated by a tenant prior to the termination of the
18initial leasehold period, the Authority shall sell or lease the
19facilities of the project on the most advantageous terms
20available. The net proceeds of any such disposition shall be
21treated in the same manner as the proceeds from sales or the
22revenues or income from leases subsequent to the termination of
23any initial leasehold period.
24    (i) The Authority shall have the power to make loans to
25persons to finance a project, to enter into loan agreements
26with respect thereto, and to accept guarantees from persons of

 

 

10000SB3073sam001- 42 -LRB100 16948 RPS 36635 a

1its loans or the resultant evidences of obligations of the
2Authority.
3    (j) The Authority may fix, determine, charge and collect
4any premiums, fees, charges, costs and expenses, including,
5without limitation, any application fees, commitment fees,
6program fees, financing charges or publication fees from any
7person in connection with its activities under this Act.
8    (k) In addition to the funds established as provided
9herein, the Authority shall have the power to create and
10establish such reserve funds and accounts as may be necessary
11or desirable to accomplish its purposes under this Act and to
12deposit its available monies into the funds and accounts.
13    (l) At the request of the governing body of any unit of
14local government, the Authority is authorized to market such
15local government's revenue bond offerings by preparing bond
16issues for sale, advertising for sealed bids, receiving bids at
17its offices, making the award to the bidder that offers the
18most favorable terms or arranging for negotiated placements or
19underwritings of such securities. The Authority may, at its
20discretion, offer for concurrent sale the revenue bonds of
21several local governments. Sales by the Authority of revenue
22bonds under this Section shall in no way imply State guarantee
23of such debt issue. The Authority may require such financial
24information from participating local governments as it deems
25necessary in order to carry out the purposes of this subsection
26(1).

 

 

10000SB3073sam001- 43 -LRB100 16948 RPS 36635 a

1    (m) The Authority may make grants to any county to which
2Division 5-37 of the Counties Code is applicable to assist in
3the financing of capital development, construction and
4renovation of new or existing facilities for hospitals and
5health care facilities under that Act. Such grants may only be
6made from funds appropriated for such purposes from the Build
7Illinois Bond Fund.
8    (n) The Authority may establish an urban development action
9grant program for the purpose of assisting municipalities in
10Illinois which are experiencing severe economic distress to
11help stimulate economic development activities needed to aid in
12economic recovery. The Authority shall determine the types of
13activities and projects for which the urban development action
14grants may be used, provided that such projects and activities
15are broadly defined to include all reasonable projects and
16activities the primary objectives of which are the development
17of viable urban communities, including decent housing and a
18suitable living environment, and expansion of economic
19opportunity, principally for persons of low and moderate
20incomes. The Authority shall enter into grant agreements from
21monies appropriated for such purposes from the Build Illinois
22Bond Fund. The Authority shall monitor the use of the grants,
23and shall provide for audits of the funds as well as recovery
24by the Authority of any funds determined to have been spent in
25violation of this subsection (n) or any rule or regulation
26promulgated hereunder. The Authority shall provide technical

 

 

10000SB3073sam001- 44 -LRB100 16948 RPS 36635 a

1assistance with regard to the effective use of the urban
2development action grants. The Authority shall file an annual
3report to the General Assembly concerning the progress of the
4grant program.
5    (o) The Authority may establish a Housing Partnership
6Program whereby the Authority provides zero-interest loans to
7municipalities for the purpose of assisting in the financing of
8projects for the rehabilitation of affordable multi-family
9housing for low and moderate income residents. The Authority
10may provide such loans only upon a municipality's providing
11evidence that it has obtained private funding for the
12rehabilitation project. The Authority shall provide 3 State
13dollars for every 7 dollars obtained by the municipality from
14sources other than the State of Illinois. The loans shall be
15made from monies appropriated for such purpose from the Build
16Illinois Bond Fund. The total amount of loans available under
17the Housing Partnership Program shall not exceed $30,000,000.
18State loan monies under this subsection shall be used only for
19the acquisition and rehabilitation of existing buildings
20containing 4 or more dwelling units. The terms of any loan made
21by the municipality under this subsection shall require
22repayment of the loan to the municipality upon any sale or
23other transfer of the project.
24    (p) The Authority may award grants to universities and
25research institutions, research consortiums and other
26not-for-profit entities for the purposes of: remodeling or

 

 

10000SB3073sam001- 45 -LRB100 16948 RPS 36635 a

1otherwise physically altering existing laboratory or research
2facilities, expansion or physical additions to existing
3laboratory or research facilities, construction of new
4laboratory or research facilities or acquisition of modern
5equipment to support laboratory or research operations
6provided that such grants (i) be used solely in support of
7project and equipment acquisitions which enhance technology
8transfer, and (ii) not constitute more than 60 percent of the
9total project or acquisition cost.
10    (q) Grants may be awarded by the Authority to units of
11local government for the purpose of developing the appropriate
12infrastructure or defraying other costs to the local government
13in support of laboratory or research facilities provided that
14such grants may not exceed 40% of the cost to the unit of local
15government.
16    (r) The Authority may establish a Direct Loan Program to
17make loans to individuals, partnerships or corporations for the
18purpose of an industrial project, as defined in Section 801-10
19of this Act. For the purposes of such program and not by way of
20limitation on any other program of the Authority, the Authority
21shall have the power to issue bonds, notes, or other evidences
22of indebtedness including commercial paper for purposes of
23providing a fund of capital from which it may make such loans.
24The Authority shall have the power to use any appropriations
25from the State made especially for the Authority's Direct Loan
26Program for additional capital to make such loans or for the

 

 

10000SB3073sam001- 46 -LRB100 16948 RPS 36635 a

1purposes of reserve funds or pledged funds which secure the
2Authority's obligations of repayment of any bond, note or other
3form of indebtedness established for the purpose of providing
4capital for which it intends to make such loans under the
5Direct Loan Program. For the purpose of obtaining such capital,
6the Authority may also enter into agreements with financial
7institutions and other persons for the purpose of selling loans
8and developing a secondary market for such loans. Loans made
9under the Direct Loan Program may be in an amount not to exceed
10$300,000 and shall be made for a portion of an industrial
11project which does not exceed 50% of the total project. No loan
12may be made by the Authority unless approved by the affirmative
13vote of at least 8 members of the board. The Authority shall
14establish procedures and publish rules which shall provide for
15the submission, review, and analysis of each direct loan
16application and which shall preserve the ability of each board
17member to reach an individual business judgment regarding the
18propriety of making each direct loan. The collective discretion
19of the board to approve or disapprove each loan shall be
20unencumbered. The Authority may establish and collect such fees
21and charges, determine and enforce such terms and conditions,
22and charge such interest rates as it determines to be necessary
23and appropriate to the successful administration of the Direct
24Loan Program. The Authority may require such interests in
25collateral and such guarantees as it determines are necessary
26to project the Authority's interest in the repayment of the

 

 

10000SB3073sam001- 47 -LRB100 16948 RPS 36635 a

1principal and interest of each loan made under the Direct Loan
2Program.
3    (s) The Authority may guarantee private loans to third
4parties up to a specified dollar amount in order to promote
5economic development in this State.
6    (t) The Authority may adopt rules and regulations as may be
7necessary or advisable to implement the powers conferred by
8this Act.
9    (u) The Authority shall have the power to issue bonds,
10notes or other evidences of indebtedness, which may be used to
11make loans to units of local government which are authorized to
12enter into loan agreements and other documents and to issue
13bonds, notes and other evidences of indebtedness for the
14purpose of financing the protection of storm sewer outfalls,
15the construction of adequate storm sewer outfalls, and the
16provision for flood protection of sanitary sewage treatment
17plans, in counties that have established a stormwater
18management planning committee in accordance with Section
195-1062 of the Counties Code. Any such loan shall be made by the
20Authority pursuant to the provisions of Section 820-5 to 820-60
21of this Act. The unit of local government shall pay back to the
22Authority the principal amount of the loan, plus annual
23interest as determined by the Authority. The Authority shall
24have the power, subject to appropriations by the General
25Assembly, to subsidize or buy down a portion of the interest on
26such loans, up to 4% per annum.

 

 

10000SB3073sam001- 48 -LRB100 16948 RPS 36635 a

1    (v) The Authority may accept security interests as provided
2in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
3    (w) Moral Obligation. In the event that the Authority
4determines that monies of the Authority will not be sufficient
5for the payment of the principal of and interest on its bonds
6during the next State fiscal year, the Chairperson, as soon as
7practicable, shall certify to the Governor the amount required
8by the Authority to enable it to pay such principal of and
9interest on the bonds. The Governor shall submit the amount so
10certified to the General Assembly as soon as practicable, but
11no later than the end of the current State fiscal year. This
12subsection shall apply only to any bonds or notes as to which
13the Authority shall have determined, in the resolution
14authorizing the issuance of the bonds or notes, that this
15subsection shall apply. Whenever the Authority makes such a
16determination, that fact shall be plainly stated on the face of
17the bonds or notes and that fact shall also be reported to the
18Governor. In the event of a withdrawal of moneys from a reserve
19fund established with respect to any issue or issues of bonds
20of the Authority to pay principal or interest on those bonds,
21the Chairperson of the Authority, as soon as practicable, shall
22certify to the Governor the amount required to restore the
23reserve fund to the level required in the resolution or
24indenture securing those bonds. The Governor shall submit the
25amount so certified to the General Assembly as soon as
26practicable, but no later than the end of the current State

 

 

10000SB3073sam001- 49 -LRB100 16948 RPS 36635 a

1fiscal year. The Authority shall obtain written approval from
2the Governor for any bonds and notes to be issued under this
3Section. In addition to any other bonds authorized to be issued
4under Sections 825-60, 825-65(e), 830-25 and 845-5, the
5principal amount of Authority bonds outstanding issued under
6this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
7360/2-6(c), which have been assumed by the Authority, shall not
8exceed $150,000,000. This subsection (w) shall in no way be
9applied to any bonds issued by the Authority on behalf of the
10Illinois Power Agency under Section 825-90 of this Act.
11    (x) The Authority may enter into agreements or contracts
12with any person necessary or appropriate to place the payment
13obligations of the Authority under any of its bonds in whole or
14in part on any interest rate basis, cash flow basis, or other
15basis desired by the Authority, including without limitation
16agreements or contracts commonly known as "interest rate swap
17agreements", "forward payment conversion agreements", and
18"futures", or agreements or contracts to exchange cash flows or
19a series of payments, or agreements or contracts, including
20without limitation agreements or contracts commonly known as
21"options", "puts", or "calls", to hedge payment, rate spread,
22or similar exposure; provided that any such agreement or
23contract shall not constitute an obligation for borrowed money
24and shall not be taken into account under Section 845-5 of this
25Act or any other debt limit of the Authority or the State of
26Illinois.

 

 

10000SB3073sam001- 50 -LRB100 16948 RPS 36635 a

1    (y) The Authority shall publish summaries of projects and
2actions approved by the members of the Authority on its
3website. These summaries shall include, but not be limited to,
4information regarding the:
5        (1) project;
6        (2) Board's action or actions;
7        (3) purpose of the project;
8        (4) Authority's program and contribution;
9        (5) volume cap;
10        (6) jobs retained;
11        (7) projected new jobs;
12        (8) construction jobs created;
13        (9) estimated sources and uses of funds;
14        (10) financing summary;
15        (11) project summary;
16        (12) business summary;
17        (13) ownership or economic disclosure statement;
18        (14) professional and financial information;
19        (15) service area; and
20        (16) legislative district.
21    The disclosure of information pursuant to this subsection
22shall comply with the Freedom of Information Act.
23(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;
2495-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
25P.A. 96-793 for the effective date of changes made by P.A.
2696-795).)
 

 

 

10000SB3073sam001- 51 -LRB100 16948 RPS 36635 a

1    Section 15. The State Finance Act is amended by adding
2Section 5.886 as follows:
 
3    (30 ILCS 105/5.886 new)
4    Sec. 5.886. The State Pension Obligation Acceleration Bond
5Fund.
 
6    Section 20. The General Obligation Bond Act is amended by
7changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding
8Section 7.7 as follows:
 
9    (30 ILCS 330/2)  (from Ch. 127, par. 652)
10    Sec. 2. Authorization for Bonds. The State of Illinois is
11authorized to issue, sell and provide for the retirement of
12General Obligation Bonds of the State of Illinois for the
13categories and specific purposes expressed in Sections 2
14through 8 of this Act, in the total amount of $56,167,925,743
15$55,917,925,743.
16    The bonds authorized in this Section 2 and in Section 16 of
17this Act are herein called "Bonds".
18    Of the total amount of Bonds authorized in this Act, up to
19$2,200,000,000 in aggregate original principal amount may be
20issued and sold in accordance with the Baccalaureate Savings
21Act in the form of General Obligation College Savings Bonds.
22    Of the total amount of Bonds authorized in this Act, up to

 

 

10000SB3073sam001- 52 -LRB100 16948 RPS 36635 a

1$300,000,000 in aggregate original principal amount may be
2issued and sold in accordance with the Retirement Savings Act
3in the form of General Obligation Retirement Savings Bonds.
4    Of the total amount of Bonds authorized in this Act, the
5additional $10,000,000,000 authorized by Public Act 93-2, the
6$3,466,000,000 authorized by Public Act 96-43, and the
7$4,096,348,300 authorized by Public Act 96-1497 shall be used
8solely as provided in Section 7.2.
9    Of the total amount of Bonds authorized in this Act, the
10additional $6,000,000,000 authorized by this amendatory Act of
11the 100th General Assembly shall be used solely as provided in
12Section 7.6 and shall be issued by December 31, 2017.
13    Of the total amount of Bonds authorized in this Act, the
14additional $250,000,000 authorized by this amendatory Act of
15the 100th General Assembly shall be used solely as provided in
16Section 7.7.
17    The issuance and sale of Bonds pursuant to the General
18Obligation Bond Act is an economical and efficient method of
19financing the long-term capital needs of the State. This Act
20will permit the issuance of a multi-purpose General Obligation
21Bond with uniform terms and features. This will not only lower
22the cost of registration but also reduce the overall cost of
23issuing debt by improving the marketability of Illinois General
24Obligation Bonds.
25(Source: P.A. 100-23, eff. 7-6-17.)
 

 

 

10000SB3073sam001- 53 -LRB100 16948 RPS 36635 a

1    (30 ILCS 330/2.5)
2    Sec. 2.5. Limitation on issuance of Bonds.
3    (a) Except as provided in subsection (b), no Bonds may be
4issued if, after the issuance, in the next State fiscal year
5after the issuance of the Bonds, the amount of debt service
6(including principal, whether payable at maturity or pursuant
7to mandatory sinking fund installments, and interest) on all
8then-outstanding Bonds, other than (i) Bonds authorized by
9Public Act 100-23 this amendatory Act of the 100th General
10Assembly, (ii) Bonds authorized by this amendatory Act of the
11100th General Assembly, (iii) (ii) Bonds issued by Public Act
1296-43, and (iv) (iii) Bonds authorized by Public Act 96-1497,
13would exceed 7% of the aggregate appropriations from the
14general funds (which consist of the General Revenue Fund, the
15Common School Fund, the General Revenue Common School Special
16Account Fund, and the Education Assistance Fund) and the Road
17Fund for the fiscal year immediately prior to the fiscal year
18of the issuance.
19    (b) If the Comptroller and Treasurer each consent in
20writing, Bonds may be issued even if the issuance does not
21comply with subsection (a). In addition, $2,000,000,000 in
22Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
23and $2,000,000,000 in Refunding Bonds under Section 16, may be
24issued during State fiscal year 2017 without complying with
25subsection (a). In addition, $2,000,000,000 in Bonds for the
26purposes set forth in Sections 3, 4, 5, 6, and 7, and

 

 

10000SB3073sam001- 54 -LRB100 16948 RPS 36635 a

1$2,000,000,000 in Refunding Bonds under Section 16, may be
2issued during State fiscal year 2018 without complying with
3subsection (a).
4(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
525-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
67-6-17; revised 8-8-17.)
 
7    (30 ILCS 330/7.7 new)
8    Sec. 7.7. State Pension Obligation Acceleration Bonds.
9    (a) As used in this Act, "State Pension Obligation
10Acceleration Bonds" means Bonds authorized by this amendatory
11Act of the 100th General Assembly and used for the purposes set
12forth in subsection (c-5) of Section 801-40 of the Illinois
13Finance Authority Act.
14    (b) State Pension Obligation Acceleration Bonds in the
15amount of $250,000,000 are hereby authorized to be used for the
16purposes set forth in subsection (c-5) of Section 801-40 of the
17Illinois Finance Authority Act.
18    (c) The proceeds of State Pension Obligation Acceleration
19Bonds authorized in subsection (b) of this Section, less the
20amounts authorized in the Bond Sale Order to be directly paid
21out for bond sale expenses under Section 8, shall be deposited
22directly into the State Pension Obligation Acceleration Bond
23Fund, and the Comptroller and the Treasurer shall, as soon as
24practical, make payments as contemplated by subsection (c-5) of
25Section 801-40 of the Illinois Finance Authority Act.

 

 

10000SB3073sam001- 55 -LRB100 16948 RPS 36635 a

1    (d) There is created the State Pension Obligation
2Acceleration Bond Fund as a special fund in the State Treasury.
3Funds deposited in the State Pension Obligation Acceleration
4Bond Fund may only be used for the purposes set forth in
5subsection (c-5) of Section 801-40 of the Illinois Finance
6Authority Act or for the payment of principal and interest due
7on State Pension Obligation Acceleration Bonds.
 
8    (30 ILCS 330/9)  (from Ch. 127, par. 659)
9    Sec. 9. Conditions for issuance and sale of Bonds;
10requirements Issuance and Sale of Bonds - Requirements for
11Bonds.
12    (a) Except as otherwise provided in this subsection, and
13subsection (h), and subsection (i), Bonds shall be issued and
14sold from time to time, in one or more series, in such amounts
15and at such prices as may be directed by the Governor, upon
16recommendation by the Director of the Governor's Office of
17Management and Budget. Bonds shall be in such form (either
18coupon, registered or book entry), in such denominations,
19payable within 25 years from their date, subject to such terms
20of redemption with or without premium, bear interest payable at
21such times and at such fixed or variable rate or rates, and be
22dated as shall be fixed and determined by the Director of the
23Governor's Office of Management and Budget in the order
24authorizing the issuance and sale of any series of Bonds, which
25order shall be approved by the Governor and is herein called a

 

 

10000SB3073sam001- 56 -LRB100 16948 RPS 36635 a

1"Bond Sale Order"; provided however, that interest payable at
2fixed or variable rates shall not exceed that permitted in the
3Bond Authorization Act, as now or hereafter amended. Bonds
4shall be payable at such place or places, within or without the
5State of Illinois, and may be made registrable as to either
6principal or as to both principal and interest, as shall be
7specified in the Bond Sale Order. Bonds may be callable or
8subject to purchase and retirement or tender and remarketing as
9fixed and determined in the Bond Sale Order. Bonds, other than
10Bonds issued under Section 3 of this Act for the costs
11associated with the purchase and implementation of information
12technology, (i) except for refunding Bonds satisfying the
13requirements of Section 16 of this Act and sold during fiscal
14year 2009, 2010, 2011, 2017, or 2018 must be issued with
15principal or mandatory redemption amounts in equal amounts,
16with the first maturity issued occurring within the fiscal year
17in which the Bonds are issued or within the next succeeding
18fiscal year and (ii) must mature or be subject to mandatory
19redemption each fiscal year thereafter up to 25 years, except
20for refunding Bonds satisfying the requirements of Section 16
21of this Act and sold during fiscal year 2009, 2010, or 2011
22which must mature or be subject to mandatory redemption each
23fiscal year thereafter up to 16 years. Bonds issued under
24Section 3 of this Act for the costs associated with the
25purchase and implementation of information technology must be
26issued with principal or mandatory redemption amounts in equal

 

 

10000SB3073sam001- 57 -LRB100 16948 RPS 36635 a

1amounts, with the first maturity issued occurring with the
2fiscal year in which the respective bonds are issued or with
3the next succeeding fiscal year, with the respective bonds
4issued maturing or subject to mandatory redemption each fiscal
5year thereafter up to 10 years. Notwithstanding any provision
6of this Act to the contrary, the Bonds authorized by Public Act
796-43 shall be payable within 5 years from their date and must
8be issued with principal or mandatory redemption amounts in
9equal amounts, with payment of principal or mandatory
10redemption beginning in the first fiscal year following the
11fiscal year in which the Bonds are issued.
12    Notwithstanding any provision of this Act to the contrary,
13the Bonds authorized by Public Act 96-1497 shall be payable
14within 8 years from their date and shall be issued with payment
15of maturing principal or scheduled mandatory redemptions in
16accordance with the following schedule, except the following
17amounts shall be prorated if less than the total additional
18amount of Bonds authorized by Public Act 96-1497 are issued:
19    Fiscal Year After Issuance    Amount
20        1-2                        $0 
21        3                          $110,712,120
22        4                          $332,136,360
23        5                          $664,272,720
24        6-8                        $996,409,080
25    Notwithstanding any provision of this Act to the contrary,
26Income Tax Proceed Bonds issued under Section 7.6 shall be

 

 

10000SB3073sam001- 58 -LRB100 16948 RPS 36635 a

1payable 12 years from the date of sale and shall be issued with
2payment of principal or mandatory redemption.
3    In the case of any series of Bonds bearing interest at a
4variable interest rate ("Variable Rate Bonds"), in lieu of
5determining the rate or rates at which such series of Variable
6Rate Bonds shall bear interest and the price or prices at which
7such Variable Rate Bonds shall be initially sold or remarketed
8(in the event of purchase and subsequent resale), the Bond Sale
9Order may provide that such interest rates and prices may vary
10from time to time depending on criteria established in such
11Bond Sale Order, which criteria may include, without
12limitation, references to indices or variations in interest
13rates as may, in the judgment of a remarketing agent, be
14necessary to cause Variable Rate Bonds of such series to be
15remarketable from time to time at a price equal to their
16principal amount, and may provide for appointment of a bank,
17trust company, investment bank, or other financial institution
18to serve as remarketing agent in that connection. The Bond Sale
19Order may provide that alternative interest rates or provisions
20for establishing alternative interest rates, different
21security or claim priorities, or different call or amortization
22provisions will apply during such times as Variable Rate Bonds
23of any series are held by a person providing credit or
24liquidity enhancement arrangements for such Bonds as
25authorized in subsection (b) of this Section. The Bond Sale
26Order may also provide for such variable interest rates to be

 

 

10000SB3073sam001- 59 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 60 -LRB100 16948 RPS 36635 a

1limiting, reducing, or managing interest rate exposure. The
2authority granted under this paragraph, however, shall not
3increase the principal amount of Bonds authorized to be issued
4by law. The arrangements may be executed and delivered by the
5Director of the Governor's Office of Management and Budget on
6behalf of the State. Net payments for such arrangements shall
7constitute interest on the Bonds and shall be paid from the
8General Obligation Bond Retirement and Interest Fund. The
9Director of the Governor's Office of Management and Budget
10shall at least annually certify to the Governor and the State
11Comptroller his or her estimate of the amounts of such net
12payments to be included in the calculation of interest required
13to be paid by the State.
14    (c) Prior to the issuance of any Variable Rate Bonds
15pursuant to subsection (a), the Director of the Governor's
16Office of Management and Budget shall adopt an interest rate
17risk management policy providing that the amount of the State's
18variable rate exposure with respect to Bonds shall not exceed
1920%. This policy shall remain in effect while any Bonds are
20outstanding and the issuance of Bonds shall be subject to the
21terms of such policy. The terms of this policy may be amended
22from time to time by the Director of the Governor's Office of
23Management and Budget but in no event shall any amendment cause
24the permitted level of the State's variable rate exposure with
25respect to Bonds to exceed 20%.
26    (d) "Build America Bonds" in this Section means Bonds

 

 

10000SB3073sam001- 61 -LRB100 16948 RPS 36635 a

1authorized by Section 54AA of the Internal Revenue Code of
21986, as amended ("Internal Revenue Code"), and bonds issued
3from time to time to refund or continue to refund "Build
4America Bonds".
5    (e) Notwithstanding any other provision of this Section,
6Qualified School Construction Bonds shall be issued and sold
7from time to time, in one or more series, in such amounts and
8at such prices as may be directed by the Governor, upon
9recommendation by the Director of the Governor's Office of
10Management and Budget. Qualified School Construction Bonds
11shall be in such form (either coupon, registered or book
12entry), in such denominations, payable within 25 years from
13their date, subject to such terms of redemption with or without
14premium, and if the Qualified School Construction Bonds are
15issued with a supplemental coupon, bear interest payable at
16such times and at such fixed or variable rate or rates, and be
17dated as shall be fixed and determined by the Director of the
18Governor's Office of Management and Budget in the order
19authorizing the issuance and sale of any series of Qualified
20School Construction Bonds, which order shall be approved by the
21Governor and is herein called a "Bond Sale Order"; except that
22interest payable at fixed or variable rates, if any, shall not
23exceed that permitted in the Bond Authorization Act, as now or
24hereafter amended. Qualified School Construction Bonds shall
25be payable at such place or places, within or without the State
26of Illinois, and may be made registrable as to either principal

 

 

10000SB3073sam001- 62 -LRB100 16948 RPS 36635 a

1or as to both principal and interest, as shall be specified in
2the Bond Sale Order. Qualified School Construction Bonds may be
3callable or subject to purchase and retirement or tender and
4remarketing as fixed and determined in the Bond Sale Order.
5Qualified School Construction Bonds must be issued with
6principal or mandatory redemption amounts or sinking fund
7payments into the General Obligation Bond Retirement and
8Interest Fund (or subaccount therefor) in equal amounts, with
9the first maturity issued, mandatory redemption payment or
10sinking fund payment occurring within the fiscal year in which
11the Qualified School Construction Bonds are issued or within
12the next succeeding fiscal year, with Qualified School
13Construction Bonds issued maturing or subject to mandatory
14redemption or with sinking fund payments thereof deposited each
15fiscal year thereafter up to 25 years. Sinking fund payments
16set forth in this subsection shall be permitted only to the
17extent authorized in Section 54F of the Internal Revenue Code
18or as otherwise determined by the Director of the Governor's
19Office of Management and Budget. "Qualified School
20Construction Bonds" in this subsection means Bonds authorized
21by Section 54F of the Internal Revenue Code and for bonds
22issued from time to time to refund or continue to refund such
23"Qualified School Construction Bonds".
24    (f) Beginning with the next issuance by the Governor's
25Office of Management and Budget to the Procurement Policy Board
26of a request for quotation for the purpose of formulating a new

 

 

10000SB3073sam001- 63 -LRB100 16948 RPS 36635 a

1pool of qualified underwriting banks list, all entities
2responding to such a request for quotation for inclusion on
3that list shall provide a written report to the Governor's
4Office of Management and Budget and the Illinois Comptroller.
5The written report submitted to the Comptroller shall (i) be
6published on the Comptroller's Internet website and (ii) be
7used by the Governor's Office of Management and Budget for the
8purposes of scoring such a request for quotation. The written
9report, at a minimum, shall:
10        (1) disclose whether, within the past 3 months,
11    pursuant to its credit default swap market-making
12    activities, the firm has entered into any State of Illinois
13    credit default swaps ("CDS");
14        (2) include, in the event of State of Illinois CDS
15    activity, disclosure of the firm's cumulative notional
16    volume of State of Illinois CDS trades and the firm's
17    outstanding gross and net notional amount of State of
18    Illinois CDS, as of the end of the current 3-month period;
19        (3) indicate, pursuant to the firm's proprietary
20    trading activities, disclosure of whether the firm, within
21    the past 3 months, has entered into any proprietary trades
22    for its own account in State of Illinois CDS;
23        (4) include, in the event of State of Illinois
24    proprietary trades, disclosure of the firm's outstanding
25    gross and net notional amount of proprietary State of
26    Illinois CDS and whether the net position is short or long

 

 

10000SB3073sam001- 64 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 65 -LRB100 16948 RPS 36635 a

1    activity, disclosure of the firm's cumulative notional
2    volume of State of Illinois CDS trades and the firm's
3    outstanding gross and net notional amount of State of
4    Illinois CDS, as of the end of the current 3-month period;
5        (3) indicate, pursuant to the firm's proprietary
6    trading activities, disclosure of whether the firm, within
7    the past 3 months, has entered into any proprietary trades
8    for its own account in State of Illinois CDS;
9        (4) include, in the event of State of Illinois
10    proprietary trades, disclosure of the firm's outstanding
11    gross and net notional amount of proprietary State of
12    Illinois CDS and whether the net position is short or long
13    credit protection, as of the end of the current 3-month
14    period;
15        (5) list all time periods during the past 3 months
16    during which the firm held net long or net short State of
17    Illinois CDS proprietary credit protection positions, the
18    amount of such positions, and whether those positions were
19    net long or net short credit protection positions; and
20        (6) indicate whether, within the previous 3 months, the
21    firm released any publicly available research or marketing
22    reports that reference State of Illinois CDS and include
23    those research or marketing reports as attachments.
24    (h) Notwithstanding any other provision of this Section,
25for purposes of maximizing market efficiencies and cost
26savings, Income Tax Proceed Bonds may be issued and sold from

 

 

10000SB3073sam001- 66 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 67 -LRB100 16948 RPS 36635 a

1Office of Management and Budget. State Pension Obligation
2Acceleration Bonds shall be in such form, either coupon,
3registered, or book entry, in such denominations, shall bear
4interest payable at such times and at such fixed or variable
5rate or rates, and be dated as shall be fixed and determined by
6the Director of the Governor's Office of Management and Budget
7in the order authorizing the issuance and sale of any series of
8State Pension Obligation Acceleration Bonds, which order shall
9be approved by the Governor and is herein called a "Bond Sale
10Order"; provided, however, that interest payable at fixed or
11variable rates shall not exceed that permitted in the Bond
12Authorization Act. State Pension Obligation Acceleration Bonds
13shall be payable at such place or places, within or without the
14State of Illinois, and may be made registrable as to either
15principal or as to both principal and interest, as shall be
16specified in the Bond Sale Order. State Pension Obligation
17Acceleration Bonds may be callable or subject to purchase and
18retirement or tender and remarketing as fixed and determined in
19the Bond Sale Order.
20(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
2125-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
227-6-17; revised 8-8-17.)
 
23    (30 ILCS 330/11)  (from Ch. 127, par. 661)
24    Sec. 11. Sale of Bonds. Except as otherwise provided in
25this Section, Bonds shall be sold from time to time pursuant to

 

 

10000SB3073sam001- 68 -LRB100 16948 RPS 36635 a

1notice of sale and public bid or by negotiated sale in such
2amounts and at such times as is directed by the Governor, upon
3recommendation by the Director of the Governor's Office of
4Management and Budget. At least 25%, based on total principal
5amount, of all Bonds issued each fiscal year shall be sold
6pursuant to notice of sale and public bid. At all times during
7each fiscal year, no more than 75%, based on total principal
8amount, of the Bonds issued each fiscal year, shall have been
9sold by negotiated sale. Failure to satisfy the requirements in
10the preceding 2 sentences shall not affect the validity of any
11previously issued Bonds; provided that all Bonds authorized by
12Public Act 96-43 and Public Act 96-1497 shall not be included
13in determining compliance for any fiscal year with the
14requirements of the preceding 2 sentences; and further provided
15that refunding Bonds satisfying the requirements of Section 16
16of this Act and sold during fiscal year 2009, 2010, 2011, 2017,
17or 2018 shall not be subject to the requirements in the
18preceding 2 sentences.
19    If any Bonds, including refunding Bonds, are to be sold by
20negotiated sale, the Director of the Governor's Office of
21Management and Budget shall comply with the competitive request
22for proposal process set forth in the Illinois Procurement Code
23and all other applicable requirements of that Code.
24    If Bonds are to be sold pursuant to notice of sale and
25public bid, the Director of the Governor's Office of Management
26and Budget may, from time to time, as Bonds are to be sold,

 

 

10000SB3073sam001- 69 -LRB100 16948 RPS 36635 a

1advertise the sale of the Bonds in at least 2 daily newspapers,
2one of which is published in the City of Springfield and one in
3the City of Chicago. The sale of the Bonds shall also be
4advertised in the volume of the Illinois Procurement Bulletin
5that is published by the Department of Central Management
6Services, and shall be published once at least 10 days prior to
7the date fixed for the opening of the bids. The Director of the
8Governor's Office of Management and Budget may reschedule the
9date of sale upon the giving of such additional notice as the
10Director deems adequate to inform prospective bidders of such
11change; provided, however, that all other conditions of the
12sale shall continue as originally advertised.
13    Executed Bonds shall, upon payment therefor, be delivered
14to the purchaser, and the proceeds of Bonds shall be paid into
15the State Treasury as directed by Section 12 of this Act.
16    All Income Tax Proceed Bonds shall comply with this
17Section. Notwithstanding anything to the contrary, however,
18for purposes of complying with this Section, Income Tax Proceed
19Bonds, regardless of the number of series or issuances sold
20thereunder, shall be considered a single issue or series.
21Furthermore, for purposes of complying with the competitive
22bidding requirements of this Section, the words "at all times"
23shall not apply to any such sale of the Income Tax Proceed
24Bonds. The Director of the Governor's Office of Management and
25Budget shall determine the time and manner of any competitive
26sale of the Income Tax Proceed Bonds; however, that sale shall

 

 

10000SB3073sam001- 70 -LRB100 16948 RPS 36635 a

1under no circumstances take place later than 60 days after the
2State closes the sale of 75% of the Income Tax Proceed Bonds by
3negotiated sale.
4    All State Pension Obligation Acceleration Bonds shall
5comply with this Section. Notwithstanding anything to the
6contrary, however, for purposes of complying with this Section,
7State Pension Obligation Acceleration Bonds, regardless of the
8number of series or issuances sold thereunder, shall be
9considered a single issue or series. Furthermore, for purposes
10of complying with the competitive bidding requirements of this
11Section, the words "at all times" shall not apply to any such
12sale of the State Pension Obligation Acceleration Bonds. The
13Director of the Governor's Office of Management and Budget
14shall determine the time and manner of any competitive sale of
15the State Pension Obligation Acceleration Bonds; however, that
16sale shall under no circumstances take place later than 60 days
17after the State closes the sale of 75% of the State Pension
18Obligation Acceleration Bonds by negotiated sale.
19(Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section
2025-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff.
217-6-17; revised 8-15-17.)
 
22    (30 ILCS 330/12)  (from Ch. 127, par. 662)
23    Sec. 12. Allocation of proceeds from sale of Bonds.
24    (a) Proceeds from the sale of Bonds, authorized by Section
253 of this Act, shall be deposited in the separate fund known as

 

 

10000SB3073sam001- 71 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 72 -LRB100 16948 RPS 36635 a

1Section 7.5.
2    (f-7) Proceeds from the sale of Bonds, authorized by
3Section 7.6 of this Act, shall be deposited as set forth in
4Section 7.6.
5    (f-10) Proceeds from the sale of Bonds, authorized by
6Section 7.7 of this Act, shall be deposited as set forth in
7Section 7.7.
8    (g) Proceeds from the sale of Bonds, authorized by Section
98 of this Act, shall be deposited in the Capital Development
10Fund.
11    (h) Subsequent to the issuance of any Bonds for the
12purposes described in Sections 2 through 8 of this Act, the
13Governor and the Director of the Governor's Office of
14Management and Budget may provide for the reallocation of
15unspent proceeds of such Bonds to any other purposes authorized
16under said Sections of this Act, subject to the limitations on
17aggregate principal amounts contained therein. Upon any such
18reallocation, such unspent proceeds shall be transferred to the
19appropriate funds as determined by reference to paragraphs (a)
20through (g) of this Section.
21(Source: P.A. 100-23, eff. 7-6-17.)
 
22    (30 ILCS 330/13)  (from Ch. 127, par. 663)
23    Sec. 13. Appropriation of proceeds from sale of Bonds.
24    (a) At all times, the proceeds from the sale of Bonds
25issued pursuant to this Act are subject to appropriation by the

 

 

10000SB3073sam001- 73 -LRB100 16948 RPS 36635 a

1General Assembly and, except as provided in Sections 7.2, and
27.6, and 7.7, may be obligated or expended only with the
3written approval of the Governor, in such amounts, at such
4times, and for such purposes as the respective State agencies,
5as defined in Section 1-7 of the Illinois State Auditing Act,
6as amended, deem necessary or desirable for the specific
7purposes contemplated in Sections 2 through 8 of this Act.
8Notwithstanding any other provision of this Act, proceeds from
9the sale of Bonds issued pursuant to this Act appropriated by
10the General Assembly to the Architect of the Capitol may be
11obligated or expended by the Architect of the Capitol without
12the written approval of the Governor.
13    (b) Proceeds from the sale of Bonds for the purpose of
14development of coal and alternative forms of energy shall be
15expended in such amounts and at such times as the Department of
16Commerce and Economic Opportunity, with the advice and
17recommendation of the Illinois Coal Development Board for coal
18development projects, may deem necessary and desirable for the
19specific purpose contemplated by Section 7 of this Act. In
20considering the approval of projects to be funded, the
21Department of Commerce and Economic Opportunity shall give
22special consideration to projects designed to remove sulfur and
23other pollutants in the preparation and utilization of coal,
24and in the use and operation of electric utility generating
25plants and industrial facilities which utilize Illinois coal as
26their primary source of fuel.

 

 

10000SB3073sam001- 74 -LRB100 16948 RPS 36635 a

1    (c) Except as directed in subsection (c-1) or (c-2), any
2monies received by any officer or employee of the state
3representing a reimbursement of expenditures previously paid
4from general obligation bond proceeds shall be deposited into
5the General Obligation Bond Retirement and Interest Fund
6authorized in Section 14 of this Act.
7    (c-1) Any money received by the Department of
8Transportation as reimbursement for expenditures for high
9speed rail purposes pursuant to appropriations from the
10Transportation Bond, Series B Fund for (i) CREATE (Chicago
11Region Environmental and Transportation Efficiency), (ii) High
12Speed Rail, or (iii) AMTRAK projects authorized by the federal
13government under the provisions of the American Recovery and
14Reinvestment Act of 2009 or the Safe Accountable Flexible
15Efficient Transportation Equity Act-A Legacy for Users
16(SAFETEA-LU), or any successor federal transportation
17authorization Act, shall be deposited into the Federal High
18Speed Rail Trust Fund.
19    (c-2) Any money received by the Department of
20Transportation as reimbursement for expenditures for transit
21capital purposes pursuant to appropriations from the
22Transportation Bond, Series B Fund for projects authorized by
23the federal government under the provisions of the American
24Recovery and Reinvestment Act of 2009 or the Safe Accountable
25Flexible Efficient Transportation Equity Act-A Legacy for
26Users (SAFETEA-LU), or any successor federal transportation

 

 

10000SB3073sam001- 75 -LRB100 16948 RPS 36635 a

1authorization Act, shall be deposited into the Federal Mass
2Transit Trust Fund.
3(Source: P.A. 100-23, eff. 7-6-17.)
 
4    Section 25. The Illinois Pension Code is amended by
5changing Sections 14-152.1, 15-198, and 16-203 and by adding
6Sections 14-147.5, 15-185.5, and 16-190.5 as follows:
 
7    (40 ILCS 5/14-147.5 new)
8    Sec. 14-147.5. Accelerated pension benefit payment.
9    (a) As used in this Section:
10    "Eligible person" means a person who:
11        (1) has terminated service;
12        (2) has accrued sufficient service credit to be
13    eligible to receive a retirement annuity under this
14    Article;
15        (3) has not received any retirement annuity under this
16    Article; and
17        (4) does not have a QILDRO in effect against him or her
18    under this Article.
19    "Pension benefit" means the benefits under this Article, or
20Article 1 as it relates to those benefits, including any
21anticipated annual increases, that an eligible person is
22entitled to upon attainment of the applicable retirement age.
23"Pension benefit" also includes applicable survivor's or
24disability benefits.

 

 

10000SB3073sam001- 76 -LRB100 16948 RPS 36635 a

1    (b) Before January 1, 2019, and annually thereafter, the
2System shall calculate, using actuarial tables and other
3assumptions adopted by the Board, the net present value of
4pension benefits for each eligible person and shall offer each
5eligible person the opportunity to irrevocably elect to receive
6an amount determined by the System to be equal to 75% of the
7net present value of his or her pension benefits in lieu of
8receiving any pension benefit. The offer shall specify the
9dollar amount that the eligible person will receive if he or
10she so elects and shall expire when a subsequent offer is made
11to the eligible person or when the System determines that 10%
12of eligible persons in that year have made the election under
13this subsection, whichever occurs first. The System shall make
14a good faith effort to contact every eligible person to notify
15him or her of the election and of the amount of the accelerated
16pension benefit payment.
17    Until the System determines that 10% of eligible persons in
18that year have made the election under this subsection, an
19eligible person may irrevocably elect to receive an accelerated
20pension benefit payment in the amount that the System offers
21under this subsection in lieu of receiving any pension benefit.
22A person who elects to receive an accelerated pension benefit
23payment under this Section may not elect to proceed under the
24Retirement Systems Reciprocal Act with respect to service under
25this Article.
26    (c) A person's credits and creditable service under this

 

 

10000SB3073sam001- 77 -LRB100 16948 RPS 36635 a

1Article shall be terminated upon the person's receipt of an
2accelerated pension benefit payment under this Section, and no
3other benefit shall be paid under this Article based on those
4terminated credits and creditable service, including any
5retirement, survivor, or other benefit or refund; except that
6to the extent that participation, benefits, or premiums under
7the State Employees Group Insurance Act of 1971 are based on
8the amount of service credit, the terminated service credit
9shall be used for that purpose.
10    (d) If a person who has received an accelerated pension
11benefit payment under this Section returns to active service
12under this Article, then:
13        (1) Any benefits under the System earned as a result of
14    that return to active service shall be based solely on the
15    person's credits and creditable service arising from the
16    return to active service.
17        (2) The accelerated pension benefit payment may not be
18    repaid to the System, and the terminated credits and
19    creditable service may not under any circumstances be
20    reinstated.
21    (e) As a condition of receiving an accelerated pension
22benefit payment, an eligible person must have another
23retirement plan or account qualified under the Internal Revenue
24Code of 1986, as amended, for the accelerated pension benefit
25payment to be rolled into. The accelerated pension benefit
26payment under this Section may be subject to withholding or

 

 

10000SB3073sam001- 78 -LRB100 16948 RPS 36635 a

1payment of applicable taxes, but to the extent permitted by
2federal law, a person who receives an accelerated pension
3benefit payment under this Section must direct the System to
4pay all of that payment as a rollover into another retirement
5plan or account qualified under the Internal Revenue Code of
61986, as amended.
7    (f) Before January 1, 2020 and every January 1 thereafter,
8the Board shall certify to the Illinois Finance Authority and
9the General Assembly the amount by which the total amount of
10accelerated pension benefit payments made under this Section
11exceed the amount appropriated to the System for the purpose of
12making those payments.
13    (g) The Board shall adopt any rules necessary to implement
14this Section.
15    (h) No provision of this Section shall be interpreted in a
16way that would cause the applicable System to cease to be a
17qualified plan under the Internal Revenue Code of 1986.
18    (i) Notwithstanding any other provision of this Section, in
19no case shall the total amount of accelerated pension benefit
20payments paid under this Section, Section 15-185.5, and Section
2116-190.5 cause the Illinois Finance Authority to issue more
22than the $250,000,000 of State Pension Obligation Acceleration
23Bonds authorized in subsection (c-5) of Section 801-40 of the
24Illinois Finance Authority Act.
 
25    (40 ILCS 5/14-152.1)

 

 

10000SB3073sam001- 79 -LRB100 16948 RPS 36635 a

1    Sec. 14-152.1. Application and expiration of new benefit
2increases.
3    (a) As used in this Section, "new benefit increase" means
4an increase in the amount of any benefit provided under this
5Article, or an expansion of the conditions of eligibility for
6any benefit under this Article, that results from an amendment
7to this Code that takes effect after June 1, 2005 (the
8effective date of Public Act 94-4). "New benefit increase",
9however, does not include any benefit increase resulting from
10the changes made to Article 1 or this Article by Public Act
1196-37, Public Act 100-23, or this amendatory Act of the 100th
12General Assembly by this amendatory Act of the 100th General
13Assembly.
14    (b) Notwithstanding any other provision of this Code or any
15subsequent amendment to this Code, every new benefit increase
16is subject to this Section and shall be deemed to be granted
17only in conformance with and contingent upon compliance with
18the provisions of this Section.
19    (c) The Public Act enacting a new benefit increase must
20identify and provide for payment to the System of additional
21funding at least sufficient to fund the resulting annual
22increase in cost to the System as it accrues.
23    Every new benefit increase is contingent upon the General
24Assembly providing the additional funding required under this
25subsection. The Commission on Government Forecasting and
26Accountability shall analyze whether adequate additional

 

 

10000SB3073sam001- 80 -LRB100 16948 RPS 36635 a

1funding has been provided for the new benefit increase and
2shall report its analysis to the Public Pension Division of the
3Department of Insurance. A new benefit increase created by a
4Public Act that does not include the additional funding
5required under this subsection is null and void. If the Public
6Pension Division determines that the additional funding
7provided for a new benefit increase under this subsection is or
8has become inadequate, it may so certify to the Governor and
9the State Comptroller and, in the absence of corrective action
10by the General Assembly, the new benefit increase shall expire
11at the end of the fiscal year in which the certification is
12made.
13    (d) Every new benefit increase shall expire 5 years after
14its effective date or on such earlier date as may be specified
15in the language enacting the new benefit increase or provided
16under subsection (c). This does not prevent the General
17Assembly from extending or re-creating a new benefit increase
18by law.
19    (e) Except as otherwise provided in the language creating
20the new benefit increase, a new benefit increase that expires
21under this Section continues to apply to persons who applied
22and qualified for the affected benefit while the new benefit
23increase was in effect and to the affected beneficiaries and
24alternate payees of such persons, but does not apply to any
25other person, including without limitation a person who
26continues in service after the expiration date and did not

 

 

10000SB3073sam001- 81 -LRB100 16948 RPS 36635 a

1apply and qualify for the affected benefit while the new
2benefit increase was in effect.
3(Source: P.A. 100-23, eff. 7-6-17.)
 
4    (40 ILCS 5/15-185.5 new)
5    Sec. 15-185.5. Accelerated pension benefit payment.
6    (a) As used in this Section:
7    "Eligible person" means a person who:
8        (1) has terminated service;
9        (2) has accrued sufficient service credit to be
10    eligible to receive a retirement annuity under this
11    Article;
12        (3) has not received any retirement annuity under this
13    Article;
14        (4) does not have a QILDRO in effect against him or her
15    under this Article; and
16        (5) is not a participant in the self-managed plan under
17    Section 15-158.2.
18    "Pension benefit" means the benefits under this Article, or
19Article 1 as it relates to those benefits, including any
20anticipated annual increases, that an eligible person is
21entitled to upon attainment of the applicable retirement age.
22"Pension benefit" also includes applicable survivor's or
23disability benefits.
24    (b) Before January 1, 2019, and annually thereafter, the
25System shall calculate, using actuarial tables and other

 

 

10000SB3073sam001- 82 -LRB100 16948 RPS 36635 a

1assumptions adopted by the Board, the net present value of
2pension benefits for each eligible person and shall offer each
3eligible person the opportunity to irrevocably elect to receive
4an amount determined by the System to be equal to 75% of the
5net present value of his or her pension benefits in lieu of
6receiving any pension benefit. The offer shall specify the
7dollar amount that the eligible person will receive if he or
8she so elects and shall expire when a subsequent offer is made
9to the eligible person or when the System determines that 10%
10of eligible persons in that year have made the election under
11this subsection, whichever occurs first. The System shall make
12a good faith effort to contact every eligible person to notify
13him or her of the election and of the amount of the accelerated
14pension benefit payment.
15    Until the System determines that 10% of eligible persons in
16that year have made the election under this subsection, an
17eligible person may irrevocably elect to receive an accelerated
18pension benefit payment in the amount that the System offers
19under this subsection in lieu of receiving any pension benefit.
20A person who elects to receive an accelerated pension benefit
21payment under this Section may not elect to proceed under the
22Retirement Systems Reciprocal Act with respect to service under
23this Article.
24    (c) A person's credits and creditable service under this
25Article shall be terminated upon the person's receipt of an
26accelerated pension benefit payment under this Section, and no

 

 

10000SB3073sam001- 83 -LRB100 16948 RPS 36635 a

1other benefit shall be paid under this Article based on those
2terminated credits and creditable service, including any
3retirement, survivor, or other benefit or refund; except that
4to the extent that participation, benefits, or premiums under
5the State Employees Group Insurance Act of 1971 are based on
6the amount of service credit, the terminated service credit
7shall be used for that purpose.
8    (d) If a person who has received an accelerated pension
9benefit payment under this Section returns to participating
10employee status under this Article, then:
11        (1) Any benefits under the System earned as a result of
12    that return to participating employee status shall be based
13    solely on the person's credits and creditable service
14    arising from the return to participating employee status.
15        (2) The accelerated pension benefit payment may not be
16    repaid to the System, and the terminated credits and
17    creditable service may not under any circumstances be
18    reinstated.
19    (e) As a condition of receiving an accelerated pension
20benefit payment, an eligible person must have another
21retirement plan or account qualified under the Internal Revenue
22Code of 1986, as amended, for the accelerated pension benefit
23payment to be rolled into. The accelerated pension benefit
24payment under this Section may be subject to withholding or
25payment of applicable taxes, but to the extent permitted by
26federal law, a person who receives an accelerated pension

 

 

10000SB3073sam001- 84 -LRB100 16948 RPS 36635 a

1benefit payment under this Section must direct the System to
2pay all of that payment as a rollover into another retirement
3plan or account qualified under the Internal Revenue Code of
41986, as amended.
5    (f) Before January 1, 2020 and every January 1 thereafter,
6the Board shall certify to the Illinois Finance Authority and
7the General Assembly the amount by which the total amount of
8accelerated pension benefit payments made under this Section
9exceed the amount appropriated to the System for the purpose of
10making those payments.
11    (g) The Board shall adopt any rules necessary to implement
12this Section.
13    (h) No provision of this Section shall be interpreted in a
14way that would cause the applicable System to cease to be a
15qualified plan under the Internal Revenue Code of 1986.
16    (i) Notwithstanding any other provision of this Section, in
17no case shall the total amount of accelerated pension benefit
18payments paid under this Section, Section 14-147.5, and Section
1916-190.5 cause the Illinois Finance Authority to issue more
20than the $250,000,000 of State Pension Obligation Acceleration
21Bonds authorized in subsection (c-5) of Section 801-40 of the
22Illinois Finance Authority Act.
 
23    (40 ILCS 5/15-198)
24    Sec. 15-198. Application and expiration of new benefit
25increases.

 

 

10000SB3073sam001- 85 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 86 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 87 -LRB100 16948 RPS 36635 a

1    (40 ILCS 5/16-190.5 new)
2    Sec. 16-190.5. 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 75% of the
25net present value of his or her pension benefits in lieu of

 

 

10000SB3073sam001- 88 -LRB100 16948 RPS 36635 a

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

 

 

10000SB3073sam001- 89 -LRB100 16948 RPS 36635 a

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,

 

 

10000SB3073sam001- 90 -LRB100 16948 RPS 36635 a

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 14-147.5, and Section
1415-185.5 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 5/16-203)
19    Sec. 16-203. 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

 

 

10000SB3073sam001- 91 -LRB100 16948 RPS 36635 a

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
495-910, Public Act 100-23, or this amendatory Act of the 100th
5General Assembly or 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

 

 

10000SB3073sam001- 92 -LRB100 16948 RPS 36635 a

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    Section 30. The State Pension Funds Continuing
24Appropriation Act is amended by adding Section 1.9 as follows:
 

 

 

10000SB3073sam001- 93 -LRB100 16948 RPS 36635 a

1    (40 ILCS 15/1.9 new)
2    Sec. 1.9. Appropriations for State Pension Obligation
3Acceleration Bonds. If for any reason the aggregate
4appropriations made available are insufficient to meet the
5levels required for the payment of principal and interest due
6on State Pension Obligation Acceleration Bonds under Section
77.7 of the General Obligation Bond Act, this Section shall
8constitute a continuing appropriation of all amounts necessary
9for those purposes.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".