Full Text of HB3871 100th General Assembly
HB3871 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB3871 Introduced , by Rep. Robert Martwick SYNOPSIS AS INTRODUCED: |
| 15 ILCS 20/50-23 new | | 15 ILCS 20/50-24 new | | 15 ILCS 405/9.5 new | | 15 ILCS 505/11 | from Ch. 130, par. 11 | 30 ILCS 330/14 | from Ch. 127, par. 664 |
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Amends the State Budget Law. Provides for a continuing appropriation for funding of public education and human services. Amends the State Comptroller Act. Provides that if any cash flow deficit resulting from timing variation between disbursement and receipt of funds in the General Revenue Fund is anticipated, the Comptroller's efforts to manage timing variations shall include issuing payments for education and human services before issuing payments for financial services. Amends the State Treasurer Act. Provides that when any warrant is presented to the State Treasurer to be countersigned, he shall do so if the warrant is in proper form, there are sufficient moneys in the fund to pay the warrant, and payments for education and human services have been issued. Amends the General Obligation Bond Act. Provides that the irrevocable and continuing authority to appropriate funds under the Act shall cover payments to bondholders, but shall not cover fees for credit enhancements or net payments on interest rate swap agreements, or financial futures contracts associated with General Obligation Bonds. Defines terms.
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Budget Law of the Civil Administrative | 5 | | Code of Illinois is amended by adding Sections 50-23 and 50-24 | 6 | | as follows: | 7 | | (15 ILCS 20/50-23 new) | 8 | | Sec. 50-23. Funding for public education. | 9 | | (a) As it is a fundamental goal that the State support the | 10 | | educational development of all people of Illinois and as the | 11 | | State has primary responsibility for financing the system of | 12 | | public education, it is the policy of the State of Illinois | 13 | | that stability of payments for education shall be a priority. | 14 | | (b) For purposes of this Section: | 15 | | "Funding of public education" means appropriations | 16 | | made available for public education from the General | 17 | | Revenue Fund; Education Assistance Fund; Common School | 18 | | Fund; Fund for the Advancement of Education; Personal | 19 | | Property Tax Replacement Fund; Drivers Education Fund; | 20 | | School District Emergency Financial Assistance Fund; | 21 | | School Technology Revolving Loan Fund; SBE Federal | 22 | | Department of Education Fund; and School Infrastructure | 23 | | Fund. |
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| 1 | | "Public education" means services provided for by a | 2 | | school under the jurisdiction of the State Board of | 3 | | Education or an institution of higher education under the | 4 | | jurisdiction of the Board of Higher Education. | 5 | | (c) The aggregate appropriations available for funding of | 6 | | public education in this State from all State funds for each | 7 | | State fiscal year shall be no less than the total aggregate | 8 | | appropriations made available for funding of public education | 9 | | in this State for the immediately preceding fiscal year. | 10 | | (d) If for any reason the aggregate appropriations made | 11 | | available are insufficient to meet the levels required by | 12 | | subsection (b) of this Section, this subsection (c) shall | 13 | | constitute an irrevocable and continuing appropriation for the | 14 | | funding of public education at the previous year's levels, and | 15 | | the irrevocable and continuing authority for and direction to | 16 | | the State Treasurer and the Comptroller to make payments at | 17 | | these levels. | 18 | | (15 ILCS 20/50-24 new) | 19 | | Sec. 50-24. Funding for human services. | 20 | | (a) To provide for public health and welfare it is the | 21 | | policy of the State that in payments from general revenue, | 22 | | stability of payments for human needs shall be a priority. | 23 | | (b) For purposes of this Section: | 24 | | "Human services" means all services provided for by the | 25 | | following Departments: the Department of Human Services, |
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| 1 | | the Department on Aging, the Department of Healthcare and | 2 | | Family Services, the Department of Children and Family | 3 | | Services, and the Department of Public Health. | 4 | | "Funding of human services" means appropriations made | 5 | | available for human services from the General Revenue Fund; | 6 | | Commitment to Human Services Fund; Long Term Care Ombudsman | 7 | | Fund; Tobacco Settlement Recovery Fund; and Department on | 8 | | Aging State Projects Fund. | 9 | | (c) The aggregate appropriations available for funding of | 10 | | human services in this State from all State funds for each | 11 | | State fiscal year shall be no less than the total aggregate | 12 | | appropriations made available for funding of services in this | 13 | | State for the immediately preceding fiscal year. | 14 | | (d) If for any reason the aggregate appropriations made | 15 | | available are insufficient to meet the levels required by | 16 | | subsection (b) of this Section, this subsection (c) shall | 17 | | constitute an irrevocable and continuing appropriation of | 18 | | funding of human services at the previous year's levels, and | 19 | | the irrevocable and continuing authority for and direction to | 20 | | the State Treasurer and the Comptroller to make payments at | 21 | | these levels. | 22 | | Section 10. The State Comptroller Act is amended by adding | 23 | | Section 9.5 as follows: | 24 | | (15 ILCS 405/9.5 new) |
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| 1 | | Sec. 9.5. Prioritization of payments. | 2 | | (a) It is the policy of the State that in payments from the | 3 | | General Revenue Fund, payments for education and human needs | 4 | | should be prioritized in order to provide for the health, | 5 | | safety and wellbeing of the people of Illinois. The Comptroller | 6 | | is responsible for implementing this policy. | 7 | | (b) As used in this section: | 8 | | "Education" means services provided for by a school | 9 | | under the jurisdiction of the State Board of Education or | 10 | | an institution of higher education under the jurisdiction | 11 | | of the Board of Higher Education. | 12 | | "Human services" means all services provided for by the | 13 | | following Departments: the Department of Human Services, | 14 | | the Department on Aging, the Department of Healthcare and | 15 | | Family Services, the Department of Children and Family | 16 | | Services, and the Department of Public Health. | 17 | | "Payments for financial services" means payments to | 18 | | financial institutions for processes related to activities | 19 | | of State finance. "Payments for financial services" shall | 20 | | not include payments to bondholders; however, it shall | 21 | | include, but not be limited to, payments for net payments | 22 | | on interest rate swap agreements, fees for credit | 23 | | enhancements and re-marketing, and other fees for | 24 | | financial services associated with bonds. | 25 | | (c) If any cash flow deficit resulting from timing | 26 | | variation between disbursement and receipt of funds in the |
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| 1 | | General Revenue Fund is anticipated, the Comptroller's efforts | 2 | | to manage timing variations shall include issuing payments for | 3 | | education and human services before issuing payments for | 4 | | financial services. | 5 | | Section 15. The State Treasurer Act is amended by changing | 6 | | Section 11 as follows:
| 7 | | (15 ILCS 505/11) (from Ch. 130, par. 11)
| 8 | | Sec. 11.
When any warrant is presented to the State | 9 | | Treasurer to be
countersigned, he shall do so if the warrant is | 10 | | in proper form , and there
are sufficient moneys in the fund to | 11 | | pay the warrant , and the provisions of Section 9.5 of the State | 12 | | Comptroller Act have been followed . He shall also make a
record | 13 | | of the date and amount of each warrant.
| 14 | | Upon request for a wire or electronic transfer of funds | 15 | | pursuant to a
warrant payable from the State treasury, the | 16 | | State Treasurer may impose upon
and collect from the requesting | 17 | | payee a service charge covering all costs
of such transfer.
| 18 | | (Source: P.A. 99-562, eff. 1-1-17 .)
| 19 | | Section 20. The General Obligation Bond Act is amended by | 20 | | changing Section 14 as follows:
| 21 | | (30 ILCS 330/14) (from Ch. 127, par. 664)
| 22 | | Sec. 14. Repayment.
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| 1 | | (a) To provide for the manner of repayment of Bonds, the | 2 | | Governor shall
include an appropriation in each annual State | 3 | | Budget of monies in such amount
as shall be necessary and | 4 | | sufficient, for the period covered by such budget,
to pay the | 5 | | interest, as it shall accrue, on all Bonds issued under this | 6 | | Act,
to pay and discharge the principal of such Bonds as shall, | 7 | | by their terms,
fall due during such period, to pay a premium, | 8 | | if any, on Bonds to be
redeemed prior to the maturity date, and | 9 | | to pay sinking fund payments in connection with Qualified | 10 | | School Construction Bonds authorized by subsection (e) of | 11 | | Section 9. Amounts included in such appropriations
for the | 12 | | payment of interest on variable rate bonds shall be the maximum | 13 | | amounts
of interest that may be payable for the period covered | 14 | | by the budget, after
taking into account any credits permitted | 15 | | in the related indenture or other
instrument against the amount | 16 | | of such interest required to be appropriated for
such period. | 17 | | Amounts included in such appropriations for the payment of
| 18 | | interest shall include the amounts certified by the Director of | 19 | | the
Governor's Office of Management and Budget under subsection | 20 | | (b) of Section 9 of this Act.
| 21 | | (b) A separate fund in the State Treasury called the | 22 | | "General Obligation
Bond Retirement and Interest Fund" is | 23 | | hereby created.
| 24 | | (c) The General Assembly shall annually make | 25 | | appropriations to pay the
principal of, interest on, and | 26 | | premium, if any, on Bonds sold under this
Act from the General |
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| 1 | | Obligation Bond Retirement and Interest Fund.
Amounts included | 2 | | in such appropriations for the payment of interest on
variable | 3 | | rate bonds shall be the maximum amounts of interest that may be
| 4 | | payable during the fiscal year, after taking into account any | 5 | | credits
permitted in the related indenture or other instrument | 6 | | against the amount
of such interest required to be appropriated | 7 | | for such period. Amounts included
in such appropriations for | 8 | | the payment of interest shall include the amounts
certified by | 9 | | the Director of the
Governor's Office of Management and Budget | 10 | | under subsection (b) of
Section 9 of this Act.
| 11 | | If for any reason there are insufficient funds in either | 12 | | the General
Revenue Fund or the Road Fund to make
transfers to | 13 | | the General Obligation Bond Retirement and Interest Fund as
| 14 | | required by Section 15 of this Act, or if for any reason the | 15 | | General Assembly
fails to make appropriations sufficient to pay | 16 | | the principal of, interest on,
and premium, if any, on the | 17 | | Bonds, as the same by their terms shall become due,
this Act | 18 | | shall constitute an irrevocable and continuing appropriation | 19 | | of all
amounts necessary for that purpose, and the irrevocable | 20 | | and continuing
authority for and direction to the State | 21 | | Treasurer and the Comptroller to make
the necessary transfers, | 22 | | as directed by the Governor, out of and disbursements
from the | 23 | | revenues and funds of the
State. The irrevocable and continuing | 24 | | authority shall cover payments to bondholders, but shall not | 25 | | cover fees for credit enhancements or net payments on interest | 26 | | rate swap agreements, or financial futures contracts |
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| 1 | | associated with General Obligation Bonds, including, but not | 2 | | limited to, bonds described under Section 9 of this Act.
| 3 | | (d) If, because of insufficient funds in either the General | 4 | | Revenue Fund
or the Road Fund, monies have been transferred to | 5 | | the General Obligation
Bond Retirement and Interest Fund, as | 6 | | required by subsection (c) of this
Section, this Act shall | 7 | | constitute the irrevocable and continuing authority
for and | 8 | | direction to the State Treasurer and Comptroller to reimburse | 9 | | these
funds of the State from the General Revenue Fund or the | 10 | | Road Fund, as
appropriate, by transferring, at such times and | 11 | | in such amounts, as directed by
the Governor, an amount to | 12 | | these funds equal to that transferred from them.
| 13 | | (Source: P.A. 96-828, eff. 12-2-09.)
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