SB3581 96TH GENERAL ASSEMBLY

LRB096 20235 HLH 35810 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3581

Introduced 2/10/2010, by Sen. Tim Bivins

SYNOPSIS AS INTRODUCED:

30 ILCS 340/1.1
30 ILCS 340/4 new

Amends the Short Term Borrowing Act. Provides that, when debt is incurred to address failures in revenues of the State, the required notice must contain a detailed plan to repay the debt. Provides that no debt may be incurred under the Act for the purpose of addressing failures in revenues of the State unless a majority of each chamber of the General Assembly has approved the borrowing by a recorded majority vote. Provides that no debt may be incurred under the Act while any debt previously incurred under this Act remains outstanding, unless a majority of each chamber of the General Assembly has approved the new borrowing by a recorded majority vote. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Short Term Borrowing Act is amended by changing Section 1.1 and by adding Section 4 as follows:

(30 ILCS 340/1.1)

Sec. 1.1. Borrowing upon failures in revenue. Whenever failures in revenues of the State occur, in order to meet those failures, the Governor, Comptroller, and Treasurer may contract debts in an amount not exceeding 15% of the State's appropriations for that fiscal year. The moneys thus borrowed shall be applied to the purposes for which they were obtained, or to pay the debts thus created by the borrowing, and to no other purpose. Before incurring debt under this Section, the Governor shall give written notice to the Clerk of the House of Representatives, the Secretary of the Senate, and the Secretary of State setting forth the reasons for the proposed borrowing, and the corrective measures recommended to restore the State's fiscal soundness, and a detailed plan to repay the debt, including, but not limited to, any new or increased revenues or spending reductions. The notice shall be a public record and open for inspection at the offices of the Secretary of State during normal business hours. No debt may be incurred under this Section until 30 days after the notice is served and until a majority of each chamber of the General Assembly has approved the incurring of the debt by a recorded majority vote. All moneys so borrowed shall be borrowed for no longer time than one year.

(Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)

(30 ILCS 340/4 new)

Sec. 4. General Assembly approval. No debt shall be incurred under this Act while any debt previously incurred under this Act remains outstanding, unless a majority of each chamber of the General Assembly has approved the incurring of the new debt by a recorded majority vote.

Section 99. Effective date. This Act takes effect upon becoming law.