96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6911

 

Introduced , by Rep. Michael G. Connelly

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5  from Ch. 127, par. 141
30 ILCS 105/5.780 new
30 ILCS 105/5.781 new
30 ILCS 105/50 new

    Amends the State Finance Act. Creates the Pay Your Bills Fund and the Pension First-Priority Fund as special funds in the State Treasury. Provides for the distribution of specified portions of any incremental non-dedicated State revenue into the General Revenue Fund, the Pay Your Bills Fund, and the Pension First-Priority Fund. Provides that moneys in the Pension First-Priority Fund shall be distributed by the Comptroller to each State-funded pension or retirement system. Provides that moneys in the Pay Your Bills Fund shall be used by the Comptroller to pay vendors and reduce State obligations attributable to the provision of goods and services to the State. Provides that the Pay Your Bills Fund may become inactive if certain conditions are met. Requires the retransfer of funds if it is later determined that incremental non-dedicated State revenue does not exist. Defines "full accrual" and "incremental non-dedicated State revenue". Authorizes the Comptroller to adopt rules necessary to implement and administer these provisions. Effective immediately.


LRB096 23812 JDS 43197 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6911LRB096 23812 JDS 43197 b

1    AN ACT concerning finance, which may be referred to as the
2Illinois Long and Short Term Liabilities Restricted Funds Law.
 
3    Be it enacted by the People of the State of Illinois,
4represented in the General Assembly:
 
5    Section 5. The State Finance Act is amended by changing
6Section 5 and adding Sections 5.780, 5.781, and 50 as follows:
 
7    (30 ILCS 105/5)  (from Ch. 127, par. 141)
8    Sec. 5. Special funds.
9    (a) There are special funds in the State Treasury
10designated as specified in the Sections which succeed this
11Section 5 and precede Section 6.
12    (b) Except as provided in the Illinois Motor Vehicle Theft
13Prevention Act, when any special fund in the State Treasury is
14discontinued by an Act of the General Assembly, any balance
15remaining therein on the effective date of such Act shall be
16transferred to the General Revenue Fund, or to such other fund
17as such Act shall provide. Warrants outstanding against such
18discontinued fund at the time of the transfer of any such
19balance therein shall be paid out of the fund to which the
20transfer was made.
21    (c) When any special fund in the State Treasury other than
22the Pay Your Bills Fund has been inactive for 18 months or
23longer, the fund is automatically terminated by operation of

 

 

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1law and the balance remaining in such fund shall be transferred
2by the Comptroller to the General Revenue Fund. When a special
3fund has been terminated by operation of law as provided in
4this Section, the General Assembly shall repeal or amend all
5Sections of the statutes creating or otherwise referring to
6that fund.
7    The Comptroller shall be allowed the discretion to maintain
8or dissolve any federal trust fund which has been inactive for
918 months or longer.
10    (d) (Blank).
11    (e) (Blank).
12(Source: P.A. 90-372, eff. 7-1-98.)
 
13    (30 ILCS 105/5.780 new)
14    Sec. 5.780. The Pay Your Bills Fund.
 
15    (30 ILCS 105/5.781 new)
16    Sec. 5.781. The Pension First-Priority Fund.
 
17    (30 ILCS 105/50 new)
18    Sec. 50. Distribution of State's incremental non-dedicated
19revenue.
20    (a) Notwithstanding any provision of law to the contrary,
21if, on or after the effective date of this amendatory Act of
22the 96th General Assembly, non-dedicated State revenue exceeds
23the non-dedicated State revenue reported by the Comptroller as

 

 

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1having been received in fiscal year 2011, then the Comptroller
2shall, from time to time, identify the State funds in which
3that incremental non-dedicated State revenue exists and order
4transferred from those funds the following amounts, which shall
5then be transferred by the Treasurer, as follows:
6        (1) Of the incremental non-dedicated State revenue in
7    the General Revenue Fund,
8            (A) 50% of that amount shall remain in the General
9        Revenue Fund;
10            (B) 25% of that amount shall be transferred into
11        the Pay Your Bills Fund; and
12            (C) 25% of that amount shall be transferred into
13        the Pension First-Priority Fund.
14        (2) Of the incremental non-dedicated State revenue in
15    any other State fund,
16            (A) 50% of that amount shall be transferred into
17        the General Revenue Fund;
18            (B) 25% of that amount shall be transferred into
19        the Pay Your Bills Fund; and
20            (C) 25% of that amount shall be transferred into
21        the Pension First-Priority Fund.
22    (b) The Pension First-Priority Fund is created as a special
23fund in the State Treasury. Subject to appropriation, amounts
24in the Fund shall be used by the Comptroller to pay pension
25obligations. The Comptroller shall distribute moneys in the
26Pension First-Priority Fund to each State-funded pension or

 

 

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1retirement system by multiplying the amount to be distributed
2in total by the proportion that results from dividing the
3number of beneficiaries and vested claimants in that
4State-funded pension or retirement system on the date of the
5distribution by the total number of beneficiaries and vested
6claimants in all State-funded pension and retirement systems on
7the date of the distribution. Interest attributable to amounts
8in the Fund shall be returned to the Fund.
9    (c) The Pay Your Bills Fund is created as a special fund in
10the State Treasury. Subject to appropriation, amounts in the
11Fund shall be used by the Comptroller to pay vendors and reduce
12State obligations attributable to the provision of goods and
13services to the State. Interest attributable to amounts in the
14Fund shall be returned to the Fund.
15    (d) If the Comptroller finds that the State's fiscal
16backlog of unpaid bills for goods and services has been reduced
17to a level where unpaid State bills can be paid within 30 days
18or less, then the Comptroller shall report that finding to the
19Governor, the Director of the Governor's Office of Management
20and Budget, the Speaker of the House of Representatives, the
21President of the Senate, the Minority Leader of the House of
22Representatives, and the Minority Leader of the Senate; and if
23this determination is made, the Pay Your Bills Fund shall
24become inactive; money shall not be deposited into it; and the
25Fund shall remain inactive until such time as the aforesaid
26backlog of bills again rises over the 30-day mark, at which

 

 

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1time the Fund shall again become active and 25% of all
2incremental non-dedicated State revenue shall once again be
3deposited in that Fund as described under subsection (a). If
4the Pay Your Bills Fund becomes inactive, the Comptroller shall
5distribute any amounts remaining in the Fund to creditors of
6the State as he or she sees fit.
7    (e) If incremental non-dedicated State revenue is found not
8to exist after a transfer has been made under subsection (a) of
9this Section, then the Comptroller, in order to offset any
10discrepancy, shall order transferred, and the Treasurer shall
11transfer, from the receiving fund to the originating fund the
12amount necessary to correct the discrepancy with respect to the
13originating fund.
14    (f) For the purposes of this Section:
15        "Full accrual" has the meaning given to that phrase by
16    Governmental Accounting Standards Board Statement 34.
17        "Incremental non-dedicated State revenue" means the
18    sum of non-dedicated State revenue that exceeds the sum of
19    non-dedicated State revenue reported by the Comptroller as
20    having been received in fiscal year 2011.
21    (g) The Comptroller may adopt rules as necessary to
22implement and administer the requirements of this Section.
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.