97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3431

 

Introduced 2/7/2012, by Sen. Mike Jacobs

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.811 new
30 ILCS 105/5.812 new

    Creates the Titanium General Obligation Bond Act. Provides for the issuance, sale, and retirement of general obligation bonds, the proceeds of which shall be allocated to Illinois companies who produce, manufacture, or substantially use titanium powdered metals. Provides for the conditions of sale of the bonds, the expenditure and investment of proceeds from the sale of the bonds, and the manner of repayment of the bonds. Creates the Titanium Powdered Metals Development Fund and the Titanium Powdered Metals Development Bond Retirement and Interest Fund. Provides for a civil action to compel payment upon default. Amends the State Finance Act. Designates the Titanium Powdered Metals Development Fund and the Titanium Powdered Metals Development Bond Retirement and Interest Fund as special funds. Effective immediately.


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

 

 

A BILL FOR

 

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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Titanium General Obligation Bond Act.
 
6    Section 5. Bonds. The State of Illinois is authorized to
7issue, sell, and provide for the retirement of general
8obligation bonds of the State of Illinois in the aggregate
9principal amount of $25,000,000, hereafter called "bonds", the
10proceeds of which shall be allocated to companies in Illinois
11who produce, manufacture, or substantially use titanium
12powdered metals for the specific purposes of infrastructure,
13engineering, legal, design, qualified experts, and research
14and development.
 
15    Section 10. Sale of bonds. The bonds shall be issued and
16sold from time to time in such amounts as directed by the
17Governor, upon recommendation by the Director of the Governor's
18Office of Management and Budget. The bonds shall be serial
19bonds in the denomination of $5,000 or some multiple thereof,
20shall be payable within 30 years from their date, shall bear
21interest payable annually or semiannually from their date at
22the rate of not more than 15% per annum, or such higher maximum

 

 

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1rate as may be authorized by the Bond Authorization Act, shall
2be dated, and shall be in such form as the Director of the
3Governor's Office of Management and Budget shall fix and
4determine in the order authorizing the issuance and sale of the
5bonds, which order shall be approved by the Governor prior to
6the giving of notice of the sale of any of the bonds. These
7bonds shall be payable as to both principal and interest at
8such place or places, within or without the State of Illinois,
9and may be registrable as to either principal or as to both
10principal and interest, as shall be fixed and determined by the
11Director of the Governor's Office of Management and Budget in
12the order authorizing the issuance and sale of the bonds,
13provided, however, that the State shall not pay a premium of
14more than 3% of the principal of any bonds so called.
 
15    Section 15. Authentication of bonds. The bonds shall be
16signed by the Governor and attested by the Secretary of State
17under the printed facsimile seal of the State and countersigned
18by hand by the Treasurer or by his duly appointed deputy. The
19signatures of the Governor and the Secretary of State may be
20printed facsimile signatures. Interest coupons with facsimile
21signatures of the Governor, Secretary of State, and Treasurer
22may be attached to the bonds. The fact that an officer whose
23signature or facsimile thereof appears on a bond or interest
24coupon no longer holds such office at the time the bond of
25coupon is delivered shall not invalidate the bond or interest

 

 

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1coupon.
 
2    Section 20. Bond proceeds. The bonds shall be sold from
3time to time by the Director of the Governor's Office of
4Management and Budget to the highest and best bidders, for not
5less than their par value, upon sealed bids, at not exceeding
6the maximum interest rate fixed in the order authorizing the
7issuance of the bonds. The right to reject any and all bids may
8be reserved. The Secretary of State shall, from time to time,
9as the bonds are to be sold, advertise in at least 2 daily
10newspapers, one of which is published in the City of
11Springfield and one in the City of Chicago, for proposals to
12purchase the bonds. Each of the advertisements for proposals
13shall be published once at least 10 days prior to the date of
14the opening of bids. The executed bonds shall, upon payment
15therefore, be delivered to the purchaser, and the proceeds of
16the bonds shall be paid into the State treasury. The proceeds
17of the bonds shall be deposited in a separate fund known as the
18Titanium Powdered Metals Development Fund, which separate fund
19is hereby created.
 
20    Section 25. Expenditure of funds. At all times, the
21proceeds from the sale of bonds are subject to appropriation by
22the General Assembly and may be expended in such amounts and at
23such times as the Department of Commerce and Economic
24Opportunity may deem necessary or desirable for the specific

 

 

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1purposes contemplated by this Act.
 
2    Section 30. Investment of proceeds. The Treasurer may, with
3the Governor's approval, invest and reinvest any money in the
4Titanium Powdered Metals Development Fund in the State treasury
5which, in the opinion of the Governor communicated in writing
6to the Treasurer, is not needed for current expenditures due or
7about to become due from such funds. These investments shall be
8made at the existing market price and in any event not to
9exceed 102% of par plus accrued interest, in obligations, the
10principal and interest on which is guaranteed by the United
11States government; any certificates of deposit of any savings
12and loan association or State or national bank which are fully
13secured by obligations, the principal of and interest on which
14is guaranteed by the United States government or secured by the
15bonds of this State or any of its units of local government,
16school districts, or public community college districts or
17municipal bonds of other states; or bonds, notes or debentures
18of the Illinois Building Authority, Illinois Toll Highway
19Authority, or Illinois Housing Development Authority.
20Securities of other states and their political subdivisions
21shall not be accepted at an amount exceeding 90% of their
22market value. All securities shall be subject to acceptance
23only upon the approval of the Treasurer. The cost price of all
24obligations shall be considered as cash in the custody of the
25Treasurer, and the obligations shall be conveyed at cost price

 

 

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1as cash by the Treasurer to this successor. The money in the
2Titanium Powdered Metals Development Fund in the form of such
3obligations shall be set up by the Treasurer as separate
4accounts and shown distinctly in every report issued by him
5regarding fund balances. All earnings received upon any
6investment shall be paid into the General Revenue Fund. All of
7the moneys other than accrued interest received from the sale
8or redemption of investments shall be replaced by the Treasurer
9in the funds from which the money was removed for that
10investment.
11    No bank or savings and loan association shall receive
12public funds as permitted by this Section, unless it has
13complied with the requirements established pursuant to Section
146 of the Public Funds Investment Act.
 
15    Section 35. Repayments. To provide for the manner of
16repayment of the bonds, the Governor shall include an
17appropriation in each annual State Budget of moneys in an
18amount as shall be necessary and sufficient for the period
19covered by such budget to pay the interest, as it shall accrue,
20on all bonds issued under this Act and also to pay and
21discharge the principal of the bonds as shall by their terms
22fall due during such period. A separate fund in the State
23treasury called the Titanium Powdered Metals Development Bond
24Retirement and Interest Fund is hereby created. The General
25Assembly shall make appropriations to pay the principal of and

 

 

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1interest on the bonds from the Titanium Powdered Metals
2Development Bond Retirement and Interest Fund. If for any
3reason the General Assembly fails to make appropriations of
4amounts sufficient for the State to pay the principal of and
5interest on the bonds as they shall by the terms of the bonds
6become due, this Act shall constitute an irrevocable and
7continuing appropriation of all amounts necessary for that
8purpose and the irrevocable and continuing authority for and
9direction to the Comptroller and to the Treasurer of the State
10to make the necessary transfers out of and disbursements from
11the revenues and funds of the State available for that purpose.
 
12    Section 40. Bond repayment; general obligations. All bonds
13issued in accordance with the provisions of this Act shall be
14direct, general obligations of the State of Illinois and shall
15so state on the face thereof, and the full faith and credit of
16the State of Illinois are hereby pledged for the punctual
17payment of the interest thereon as the same shall become due
18and for the punctual payment of the principal thereof at
19maturity, and the provisions of this Section shall be
20irrepealable until all bonds issued in accordance with the
21provisions of this Act are paid in full as to both principal
22and interest.
 
23    Section 45. Default. If the State fails to pay the
24principal of, or interest on, any of the bonds as they become

 

 

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1due, a civil action to compel payment may be instituted in the
2Supreme Court of Illinois as a court of original jurisdiction
3by the holder or holders of the bonds on which such default of
4payment exists. Delivery of a summons and a copy of the
5complaint to the Attorney General shall constitute sufficient
6service to give the Supreme Court of Illinois jurisdiction of
7the subject matter of such a suit and jurisdiction over the
8State and its officers as defendants for the purpose of
9compelling such payment. Any case, controversy, or cause of
10action concerning the validity of this Act relates to the
11revenue of the State of Illinois.
 
12    Section 50. Treasurer and Comptroller. Upon each delivery
13of bonds authorized to be issued under this Act, the
14Comptroller shall compute and certify to the State Treasurer
15the total amount of principal of and interest on the bonds
16issued that will be payable in order to retire the bonds and
17the amount of principal of and interest on the bonds that will
18be payable on each payment date according to the terms of the
19bonds during the then current and each succeeding fiscal year.
20On or before the last day of the month preceding each payment
21date, the Treasurer and the Comptroller shall transfer from the
22General Revenue Fund in the State treasury to the Titanium
23Powdered Minerals Development Bond Retirement and Interest
24Fund a sum of money, appropriated for such purpose, so that the
25Fund contains an amount equal to the aggregate of the amount of

 

 

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1principal and interest payable by the terms of the bonds on the
2next payment date. Such computations and transfers shall be
3made for each series of the bonds issued and delivered. The
4transfer of moneys directed by this Section is not required if
5moneys in the Titanium Powdered Minerals Development Bond
6Retirement and Interest Fund received from other sources are
7more than the amount otherwise to be transferred as herein
8provided, and if the Governor so notifies the Comptroller and
9Treasurer.
 
10    Section 55. Refunding bonds. The State of Illinois is
11authorized, from time to time as the Governor shall determine,
12to issue, sell, and provide for the retirement of bonds of the
13State of Illinois for the sole purpose of refunding all or any
14portion of the principal of the bonds issued under the
15provisions of this Act, provided that the refunding bonds shall
16mature no later than the final maturity date of the bonds being
17refunded. The refunding bonds shall in all other respects be
18subject to the terms and conditions of Sections 15, 20, 30, 35,
1940, 45, 50, and 55 of this Act. The principal amount of any
20refunding bonds shall not exceed 103% of the principal amount
21of the bonds refunded with the proceeds of those refunding
22bonds.
 
23    Section 60. The State Finance Act is amended by adding
24Sections 5.811 and 5.812 as follows:
 

 

 

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1    (30 ILCS 105/5.811 new)
2    Sec. 5.811. The Titanium Powdered Metals Development Fund.
 
3    (30 ILCS 105/5.812 new)
4    Sec. 5.812. The Titanium Powdered Metals Development Bond
5Retirement and Interest Fund.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.