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91_HB2924eng
HB2924 Engrossed LRB9108568DJcsC
1 AN ACT concerning proceeds from tobacco litigation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Article 5.
5 Section 5-1. Short title. This Article may be cited as
6 the Health First Plan Law. In this Article, references to
7 "this Law" mean this Article.
8 Section 5-5. Definition. In this Act, "Master Settlement
9 Agreement" means the Master Settlement Agreement entered in
10 the case of the People of the State of Illinois v. Philip
11 Morris et al. (Circuit Court of Cook County, No. 96-L13146).
12 Section 5-10. Moneys set aside for investment.
13 (a) The General Assembly finds that it is important to
14 save a portion of the moneys paid to the State under the
15 Master Settlement Agreement to protect the State from
16 financial hardship in the future due to less favorable
17 economic conditions, to provide reserves that may be used to
18 supplement moneys distributed under Section 5-15 of this Law,
19 or to finance other programs and services that the General
20 Assembly may authorize as provided in subsection (g) of this
21 Section.
22 (b) In each of fiscal years 2000 and 2001, 50% of the
23 moneys received by the State under the Master Settlement
24 Agreement shall be set aside for investment to foster growth
25 of those moneys so as to generate additional revenue that
26 will sustain distributions into the special funds established
27 under Section 20 over a longer period of time. In subsequent
28 fiscal years, the 50% that is set aside for investment in
29 each of the first 2 fiscal years shall be decreased by 2
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1 percentage points per year for 25 years so that at the end of
2 that period all moneys received by the State under the Master
3 Settlement Agreement each fiscal year will be distributed
4 into the special funds. As provided in the Tobacco Settlement
5 Bonding Authority Law, the State Treasurer may sell to the
6 Tobacco Settlement Bonding Authority up to 20% of the moneys
7 received by the State under the Master Settlement Agreement.
8 The portion of those moneys sold to the Tobacco Settlement
9 Bonding Authority shall come from the moneys set aside for
10 investment under this subsection.
11 (c) The State Treasurer shall manage all moneys set
12 aside for investment under this Section. The Treasurer may
13 invest the moneys in the same manner, in the same types of
14 investments, and subject to the same limitations as provided
15 in the Illinois Pension Code for the investment of pension
16 funds other than those established under Article 3 or 4 of
17 that Code.
18 (d) The State Treasurer shall develop, publish, and
19 implement an investment policy covering the investment of the
20 moneys in the Tobacco Settlement Recovery Fund. The Treasurer
21 shall cause the policy to be published at least once each
22 year in at least one newspaper of general circulation in both
23 Springfield and Chicago. At least 30 calendar days before
24 implementing any change in the previously published
25 investment policy, the Treasurer shall cause the change to be
26 published in a newspaper of general circulation in both
27 Springfield and Chicago. In the case of a State Treasurer
28 taking office after the effective date of this Law, within 90
29 days after taking office, the Treasurer shall review and, if
30 necessary, update the investment policy then in effect.
31 (e) All earnings on moneys set aside for investment
32 under this Section, less expenses incurred by the Treasurer
33 in administering the Fund, shall be retained in the Tobacco
34 Settlement Recovery Fund. The earnings shall not be included
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1 in any amounts automatically distributed into the special
2 funds each fiscal year under Section 5-15 but shall be
3 allocated only in accordance with substantive legislation
4 enacted by the General Assembly from time to time as
5 circumstances and the State's needs dictate.
6 (f) The total expenses incurred by the State Treasurer
7 in administering the Tobacco Settlement Recovery Fund may not
8 exceed $200,000 before January 1, 2002. In 2002 and in each
9 year thereafter, the limit on the Treasurer's expenses
10 incurred in administering the Fund shall be adjusted based on
11 the Consumer Price Index for the North Central Region as
12 published by the United States Department of Labor, Bureau of
13 Labor Statistics, for the immediately preceding calendar
14 year.
15 (g) Except as provided in subsection (f) of Section 5-30
16 and except as otherwise provided by law, moneys appropriated
17 from the Tobacco Settlement Recovery Fund must be used for
18 purposes for which moneys appropriated from the special funds
19 established under Section 5-15 may be used. Moneys in the
20 Tobacco Settlement Recovery Fund may be appropriated for a
21 purpose other than a purpose for which moneys appropriated
22 from the special funds established under Section 5-15 may be
23 used, but any such appropriation for another purpose must be
24 approved by a three-fifths majority of each house. Each
25 appropriation of moneys from the Fund for a separate purpose
26 must be made in a separate bill.
27 Section 5-15. Moneys distributed into special funds.
28 (a) The following are created as special funds in the
29 State treasury:
30 (1) The Smoking/Tobacco Control Trust Fund.
31 (2) The Healthy Communities Trust Fund.
32 (3) The Seniors/Disabled Choices Trust Fund.
33 (4) The Healthy Schools Trust Fund.
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1 (5) The Health and Medicine Endowment Fund.
2 (6) The Health Infrastructure Fund.
3 (b) In each of fiscal years 2000 and 2001, 50% of the
4 moneys received by the State under the Master Settlement
5 Agreement shall be distributed, immediately upon receipt,
6 into the special funds established under subsection (a). In
7 subsequent fiscal years, the 50% that is distributed into the
8 special funds in each of the first 2 fiscal years shall be
9 increased by 2 percentage points per year for 25 years so
10 that at the end of that period all moneys received by the
11 State under the Master Settlement Agreement each fiscal year
12 will be distributed into the special funds. For purposes of
13 this Section, the moneys to be distributed into the special
14 funds in any fiscal year are the "moneys for distribution".
15 (c) In each fiscal year, the moneys for distribution
16 shall be distributed into the special funds established under
17 subsection (a) as follows:
18 (1) Thirty percent of the moneys for distribution
19 shall be distributed into the Smoking/Tobacco Control
20 Trust Fund for community-based programs and services
21 administered by local nonprofit agencies, public
22 universities, and local health departments to control
23 tobacco use and distribution, to conduct smoking
24 cessation programs, and to provide addiction treatment,
25 according to budget guidelines issued by the U.S. Centers
26 for Disease Control.
27 (2) Twenty percent of the moneys for distribution
28 shall be distributed into the Healthy Communities Trust
29 Fund for expansion of community and family health
30 programs administered by various State agencies and
31 community-based organizations, including, but not limited
32 to: maternal and child health programs, including
33 services targeted to at-risk pregnant women and newborns
34 and infants; early childhood programs; adolescent
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1 development programs; expanded coverage of children and
2 families under the Children's Health Insurance Program
3 Act; financial aid for urban and rural programs targeted
4 to designated shortage areas, as defined in the Illinois
5 Rural/Downstate Health Act; health programs targeted at
6 minorities; and HIV/AIDS control and prevention programs.
7 (3) Twenty percent of the moneys for distribution
8 shall be distributed into the Seniors/Disabled Choices
9 Trust Fund for home and community-based long-term care
10 services authorized under the Illinois Act on the Aging,
11 the Disabled Persons Rehabilitation Act, and the
12 Developmental Disability and Mental Disability Services
13 Act and for financial assistance provided to the elderly
14 or disabled including, but not limited to, expansion of
15 eligibility and coverage under the Senior Citizens and
16 Disabled Persons Property Tax Relief and Pharmaceutical
17 Assistance Act.
18 (4) Ten percent of the moneys for distribution shall
19 be distributed into the Healthy Schools Trust Fund for
20 primary and preventive health and mental health programs
21 and services for pre-school and school-age children
22 coordinated by the State Board of Education, including,
23 but not limited to, a program of smoking prevention and
24 cessation that either employs certificated school nurses
25 or employs registered professional nurses enrolled in an
26 Illinois certificated school nurse program.
27 (5) Ten percent of the moneys for distribution shall
28 be distributed into the Health and Medicine Endowment
29 Fund for allocation to at least 7 universities located in
30 Illinois to fund research on tobacco-related illnesses
31 such as cancer, cardiovascular disease, and pulmonary
32 disease and to enhance programs administered by schools
33 of public health in relation to tobacco addiction control
34 and treatment, smoking prevention, and smoking cessation.
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1 A portion of the moneys distributed into this Fund shall
2 also be used for graduate medical education and for
3 programs for students pursuing careers in primary care
4 family medicine and adolescent medicine in underserved
5 communities.
6 (6) Ten percent of the moneys for distribution shall
7 be distributed into the Health Infrastructure Fund for
8 health-related capital financing for the purpose of
9 establishment, construction, or modification of essential
10 health facilities and services and also including the
11 acquisition, replacement, or upgrading of medical
12 equipment or vehicles. This financing may include the
13 distribution of funds for health-related capital
14 financing in the form of direct grants, security to
15 underwrite capital development bonds, or security to
16 underwrite loan pools for small businesses.
17 (d) Moneys in each of the special funds established
18 under subsection (a) shall be spent only according to
19 appropriations to the Health First Plan Authority made by the
20 General Assembly. The Authority shall use moneys
21 appropriated from the Smoking/Tobacco Control Trust Fund, the
22 Healthy Communities Trust Fund, the Senior/Disabled Choices
23 Trust Fund, the Healthy Schools Trust Fund, and the Health
24 Infrastructure Fund to award grants and contracts for
25 programs and services according to its policies, standards,
26 and procedures established under Section 5-30. The Authority
27 shall use moneys appropriated from the Health and Medicine
28 Endowment Fund to award research grants and contracts to
29 universities located in Illinois, also according to those
30 policies, standards, and procedures.
31 (e) Moneys unspent and remaining in a special fund at
32 the end of a fiscal year shall be carried over for
33 reappropriation and expenditure in subsequent fiscal years.
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1 Section 5-20. Review of distributions. The General
2 Assembly may from time to time examine the amounts
3 distributed into the special funds established under Section
4 5-15 and allocated to programs, services, and universities
5 and may alter the schedule of decreases in the percentage of
6 moneys set aside for investment and the corresponding
7 schedule of increases in the percentage of moneys distributed
8 into the special funds, as circumstances and the State's
9 needs dictate.
10 Section 5-25. Treasurer's certification of amounts. Each
11 year, based on the amount paid to the State in that year
12 pursuant to the Master Settlement Agreement, the State
13 Treasurer shall certify to the General Assembly the portion
14 of that amount to be set aside for investment under Section
15 5-10 and the portion of that amount to be distributed into
16 each of the special funds established under Section 5-15.
17 Section 5-30. Health First Plan Authority.
18 (a) The Health First Plan Authority is created. The
19 Health First Plan Authority shall be composed of 5 members
20 appointed by the Governor with the advice and consent of the
21 Senate. The Governor shall appoint the members within 3
22 months after the effective date of this Law. The Governor
23 shall initially appoint 2 members for terms of 2 years and 3
24 members for terms of 4 years. Thereafter, the Governor shall
25 appoint all members for terms of 4 years. If a vacancy
26 occurs in the office of a member, the Governor shall appoint
27 a person to fill the remainder of the unexpired term. The
28 Governor's appointments must reflect a political balance.
29 (b) A member may not have a financial interest in an
30 entity that receives or may receive moneys allocated from one
31 of the special funds established under Section 5-15, nor may
32 a member have a financial interest in any other entity that
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1 benefits or may benefit from the allocation of those moneys.
2 (c) Members of the Health First Plan Authority may be
3 reimbursed for their reasonable expenses actually incurred in
4 performing their duties.
5 (d) The Health First Plan Authority shall establish
6 policies, standards, and procedures to govern the allocation
7 of moneys appropriated from the special funds established
8 under Section 5-15. Those policies, standards, and
9 procedures shall (i) require that priority in awarding grants
10 or contracts must go to applicants who propose to use the
11 grant or contract moneys in connection with programs or
12 services to address treatment of tobacco-related illnesses or
13 tobacco-use prevention or cessation and (ii) include
14 provisions for evaluating applicants for grants or contracts
15 funded with those moneys. The Health First Plan Authority
16 also shall establish clear performance and evaluation
17 standards, including, but not limited to, collection of
18 demographic data such as age, gender, race, ethnicity, and
19 geographic information, to be applied to recipients of those
20 moneys to measure the results of the allocations from the
21 special funds and to determine future funding of programs and
22 services from those funds. The Health First Plan Authority
23 must evaluate the performance of every applicant for and
24 recipient of moneys appropriated from one of the special
25 funds and must conduct the evaluation before awarding,
26 continuing, or renewing a grant or contract.
27 (e) The Health First Plan Authority shall employ an
28 executive director and other staff necessary for processing
29 and overseeing grants and contracts funded with moneys
30 appropriated from the special funds established under Section
31 5-15.
32 (f) The General Assembly shall appropriate moneys for
33 the Health First Plan Authority's operation from the moneys
34 in the Tobacco Settlement Recovery Fund that are set aside
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1 for investment under Section 5-10 or from the earnings on
2 those moneys.
3 Section 5-35. Comptroller's annual report. The State
4 Comptroller shall include, in the annual report required
5 under Section 20 of the State Comptroller Act, an accounting
6 of all amounts spent from each of the special funds
7 established under Section 5-15.
8 Section 5-40. Audit of special funds. At least once
9 during every biennium, as provided in Section 3-2 of the
10 Illinois State Auditing Act, the Auditor General shall
11 conduct a financial audit of all expenditures from the
12 special funds established under Section 5-15.
13 Section 5-45. Legislative Research Unit responsibilities.
14 As provided in Section 10-2 of the Legislative Commission
15 Reorganization Act of 1984, the Legislative Research Unit
16 shall evaluate the annual allocations and expenditures of
17 moneys from the special funds established under Section 5-15
18 and shall conduct program evaluations to determine the impact
19 of the system for distributing moneys paid to the State under
20 the Master Settlement Agreement.
21 Article 10.
22 Section 10-1. Short title. This Article may be cited as
23 the Tobacco Settlement Bonding Authority Law. In this
24 Article, references to "this Law" mean this Article.
25 Section 10-5. Definitions. In this Law:
26 "Bonding Authority" means the Tobacco Settlement Bonding
27 Authority created under Section 10-10.
28 "Board" means the Board of Directors of the Tobacco
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1 Settlement Bonding Authority.
2 "Bond" means a bond or note or any other evidence of
3 obligation for borrowed money deemed appropriate by the Board
4 of Directors of the Tobacco Settlement Bonding Authority.
5 "Public member" means a person who is not, and is not
6 related to anyone who is, an elected official, employee,
7 consultant, agent, attorney, or accountant of the State of
8 Illinois or any political subdivision of the State of
9 Illinois.
10 "Master Settlement Agreement" means the Master Settlement
11 Agreement entered in the case of the People of the State of
12 Illinois v. Phillip Morris, et al. (Circuit Court of Cook
13 County, No. 96-L13146).
14 Section 10-10. Creation. There is created the Tobacco
15 Settlement Bonding Authority, which shall constitute a
16 political subdivision, a body politic and corporate, and a
17 municipal corporation of the State of Illinois. The State
18 Treasurer may sell to the Bonding Authority up to 20% of all
19 payments received from the Master Settlement Agreement. The
20 Bonding Authority shall pay its administrative expenses and
21 debt service expenses from the payments that it purchases
22 from the Master Settlement Agreement, provided that its
23 administrative expenses are approved by the Board of
24 Directors and do not exceed 0.5% of the payments transferred
25 to the Bonding Authority. The Bonding Authority shall, by
26 April 14 of each year, after payment of debt service, other
27 obligations, and administrative expenses, remit to the State
28 Treasurer for deposit into the Tobacco Settlement Recovery
29 Fund the remainder of the proceeds of the Master Settlement
30 Agreement that it has received, including investment earnings
31 and any bond proceeds including earnings on the investment of
32 the bond proceeds prior to remittance to the Treasurer. The
33 State Treasurer shall invest any moneys of the Bonding
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1 Authority, on behalf of the Bonding Authority, in any
2 investment permitted by the Public Funds Investment Act or
3 any guaranteed investment contract the provider of which has
4 long-term debt rated in one of the three highest rating
5 categories (without regard to any rating refinement or
6 gradation by numerical or other modifiers) by 2 standard
7 rating services.
8 Section 10-15. Board of Directors. The State Treasurer,
9 or his or her designee, shall serve as the Chairman of the
10 Board. The Governor shall appoint 2 public members of the
11 Board and the Attorney General shall appoint one public
12 member of the Board, with the advice and consent of the
13 Senate, each for an initial term expiring July 1, 2003. The
14 State Treasurer, the Governor, and the Comptroller shall each
15 appoint one public member to the Board, with the advice and
16 consent of the Senate, for an initial term expiring July 1,
17 2002. The Attorney General and the Comptroller shall each
18 appoint one public member to the Board, with the advice and
19 consent of the Senate, for an initial term expiring July 1,
20 2001. At the expiration of the term of any member, or in the
21 case of a vacancy, a successor shall be appointed by the
22 elected official, or the successor of the elected official,
23 who made the appointment for the initial term. All
24 successors of Board members shall hold office for a term of 3
25 years from the first day of July of the year in which they
26 are appointed, except in case of an appointment to fill a
27 vacancy. Vacancies for members shall be filled in the same
28 manner as original appointments for the balance of the
29 unexpired term. In case of a vacancy during the recess of
30 the Senate, the Governor, the Attorney General, the
31 Comptroller, or the State Treasurer shall make a temporary
32 appointment until the next meeting of the Senate, when he or
33 she shall appoint some person to fill the vacancy. Any
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1 person so appointed whom the Senate confirms shall hold
2 office during the remainder of the term and until his
3 successor is appointed and qualified. The initial
4 appointments by the Governor, the Attorney General, the
5 Comptroller, or the State Treasurer shall be effective
6 immediately. Nothing shall preclude a member from serving
7 consecutive terms. All members of the Board shall hold their
8 offices until their successors are appointed.
9 Section 10-20. Reimbursement of expenses. Reimbursement
10 of expenses of members and employees of the Bonding Authority
11 shall not exceed the rates of reimbursement established by
12 the Governor's Travel Control Board for employees of the
13 State of Illinois.
14 Section 10-25. Actions of members. Four members of the
15 Bonding Authority shall constitute a quorum for the purpose
16 of conducting business. Actions of the Bonding Authority
17 must receive the affirmative vote of at least 4 members. The
18 Bonding Authority shall determine the times and places of its
19 meetings. The members of the Bonding Authority shall serve
20 without compensation for service as a member but are entitled
21 to reimbursement of reasonable expenses incurred in the
22 performance of their official duties.
23 Section 10-30. Officers.
24 (a) The Bonding Authority shall appoint an Executive
25 Director, who shall be chief executive officer of the Bonding
26 Authority. In addition to any other duties set forth in this
27 Law, the Executive Director shall:
28 (1) Direct and supervise the administrative affairs
29 and activities of the Bonding Authority, in accordance
30 with its rules, regulations, and policies.
31 (2) Attend meetings of the Bonding Authority.
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1 (3) Keep minutes of all proceedings of the Bonding
2 Authority.
3 (4) Approve all accounts for salaries and all other
4 allowable expenses of the Bonding Authority and its
5 employees and consultants and approve all expenses
6 incidental to the operation of the Bonding Authority.
7 (5) Perform any other duty that the Bonding
8 Authority requires for carrying out the provisions of
9 this Law.
10 (b) The Bonding Authority may appoint other officers of
11 the Bonding Authority who may or may not be members of the
12 Board.
13 Section 10-35. Powers. In addition to the powers set
14 forth elsewhere in this Law, the Bonding Authority may:
15 (1) Adopt and alter an official seal.
16 (2) Sue and be sued and plead and be impleaded, all
17 in its own name, and agree to binding arbitration of any
18 dispute to which it is a party.
19 (3) Adopt bylaws, rules, and regulations to carry
20 out the provisions of this Law.
21 (4) Maintain an office or offices at such place as
22 the Bonding Authority may designate.
23 (5) Employ, either as regular employees or
24 independent contractors, consultants, accountants,
25 attorneys, financial experts, managers and other
26 professional personnel, and such other personnel as may
27 be necessary in the judgment of the Bonding Authority,
28 and fix their compensation.
29 (6) Enter into contracts and agreements of any kind.
30 (7) Issue bonds under Section 10-40.
31 (8) Exercise all the corporate powers granted
32 Illinois corporations under the Business Corporation Act
33 of 1983, except to the extent that powers are
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1 inconsistent with those of a body politic and corporate
2 of the State.
3 (9) Do all things necessary or convenient to carry
4 out the powers granted by this Law.
5 Section 10-40. Bonding.
6 (a) The Bonding Authority shall issue bonds which are
7 revenue bonds that are payable solely from and secured solely
8 by the proceeds of the Master Settlement Agreement that have
9 been sold by the State of Illinois to the Bonding Authority
10 from the Master Settlement Agreement. The Bonding Authority
11 may issue bonds for the purpose of purchasing an interest of
12 the State of Illinois in the Master Settlement Agreement, for
13 the purpose of refunding, advance refunding, or refinancing
14 outstanding bonds, for the purpose of establishing reserves,
15 paying the interest on the bonds, and paying costs of
16 issuance of the bonds, and for any other proper public
17 purpose. Bonds may be issued in one or more series and shall
18 be payable solely and secured solely by the portion of the
19 Master Settlement Agreement that the State of Illinois has
20 sold to the Bonding Authority.
21 (b) Bonds may be authorized by a resolution of the Board
22 and may be secured by a trust agreement by and between the
23 Bonding Authority and a corporate trustee or trustees, which
24 may be any trust company or bank having the powers of a trust
25 company within or without the State. Bonds may:
26 (1) Mature at any time or times not exceeding 20
27 years from the effective date of this Law.
28 (2) Notwithstanding the provisions of the Bond
29 Authorization Act or any other provision of law, bear
30 interest at any fixed or variable rate or rates
31 determined by the method provided in the resolution or
32 trust agreement.
33 (3) Be payable as to principal and interest at any
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1 time or times, in the denominations and form, either
2 coupon or registered or both, and carry the registration
3 and privileges as to exchange, transfer, or conversion
4 and for the replacement of mutilated, lost, or destroyed
5 bonds as the resolution or trust agreement may provide.
6 (4) Be payable in lawful money of the United States
7 at a designated place.
8 (5) Be subject to the terms of purchase, payment,
9 redemption, refunding, or refinancing that the resolution
10 or trust agreement provides.
11 (6) Be executed by the manual or facsimile
12 signatures of the officers of the Bonding Authority
13 designated by the Bonding Authority, which signatures
14 shall be valid at delivery even for one who has ceased to
15 hold office.
16 (7) Be sold at public or private sale in the manner
17 and upon the terms determined by the Bonding Authority.
18 (8) Have such other terms and provisions as shall
19 be authorized by resolution of the Board.
20 (c) Any resolution or trust agreement may contain
21 provisions that shall be a part of the contract with the
22 holders of the bonds as to:
23 (1) Limitations on the issue of additional bonds,
24 the terms upon which additional bonds may be issued and
25 secured, and the terms upon which additional bonds may
26 rank on a parity with, or be subordinate or superior to,
27 other bonds.
28 (2) The refunding, advance refunding or refinancing
29 of outstanding bonds.
30 (3) The procedure, if any, by which the terms of any
31 contract with holders of the bonds may be altered or
32 amended, the number of bond holders that must consent
33 thereto, and the manner in which consent shall be given.
34 (4) Defining the acts or omissions which shall
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1 constitute a default in the duties of the Bonding
2 Authority to the holders of bonds and providing the
3 rights or remedies of such holders in the event of a
4 default which may include provisions restricting
5 individual right of action by the holders of the bonds.
6 (5) Any other matter relating to the bonds which the
7 Bonding Authority determines appropriate.
8 (d) In connection with the issuance of its bonds, the
9 Bonding Authority may enter into arrangements to provide
10 additional security and liquidity for the bonds. These may
11 include, without limitation, bond insurance, letters of
12 credit, lines of credit by which the Bonding Authority may
13 borrow funds to pay or redeem its bonds, and purchase or
14 remarketing arrangements for assuring the ability of holders
15 of the Bonding Authority's bonds to sell or to have redeemed
16 their bonds.
17 (e) A pledge by the Bonding Authority of the proceeds of
18 the Master Settlement Agreement that the State of Illinois
19 has sold to transfer to the Bonding Authority as security for
20 an issue of bonds or for the performance of its obligations
21 under any management agreement shall be valid and binding
22 from the time when the pledge is made. The portion of the
23 Master Settlement Agreement proceeds that the State of
24 Illinois has committed to transfer to the Bonding Authority
25 pledged shall immediately be subject to the lien of the
26 pledge without any physical delivery or further act, and the
27 lien of any pledge shall be valid and binding against any
28 person having any claim of any kind in tort, contract, or
29 otherwise against the Bonding Authority, irrespective of
30 whether the person has notice. No resolution, trust
31 agreement, management agreement or financing statement,
32 continuation statement, or other instrument adopted or
33 entered into by the Bonding Authority need be filed or
34 recorded in any public record other than the records of the
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1 Bonding Authority in order to perfect the lien against third
2 persons, regardless of any contrary provision of law.
3 (f) The Bonding Authority may issue bonds to refund,
4 advance refund, or refinance any of its bonds then
5 outstanding, including the payment of any redemption premium
6 and any interest accrued or to accrue to the earliest or any
7 subsequent date of redemption, purchase, or maturity of the
8 bonds, provided that the Bonding Authority shall not issue
9 any bonds that mature later than 20 years from the effective
10 date of this Law.
11 (g) At no time shall the total outstanding bonds of the
12 Bonding Authority issued under this Section exceed
13 $500,000,000. Bonds which have been paid, bonds which are
14 being paid or retired by issuance, sale or delivery of bonds,
15 and bonds for which sufficient funds have been deposited with
16 the paying agent or trustee to provide for payment of
17 principal and interest thereon, and any redemption premium,
18 as provided in the authorizing resolution or indenture, shall
19 not be considered outstanding for the purposes of this
20 subsection.
21 (h) The bonds of the Bonding Authority shall not
22 constitute an indebtedness of the State or of any political
23 subdivision of the State. The bonds of the Bonding Authority
24 shall not be an obligation, general or moral, of the State of
25 Illinois and shall not be an obligation, general or moral,
26 secured by a pledge of the full faith and credit of the State
27 of Illinois, and the holders of bonds of the Bonding
28 Authority may not require the levy or imposition by the State
29 of any taxes or the application of other State revenues or
30 funds to the payment of the bonds of the Bonding Authority.
31 No member of the Bonding Authority or any person executing
32 the bonds shall be liable personally on the bonds or subject
33 to any personal liability by reason of the issuance of the
34 bonds. The foregoing shall be stated on the face of each
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1 bond.
2 (i) The State of Illinois pledges to and agrees with the
3 holders of the bonds of the Bonding Authority issued pursuant
4 to this Law that the State will not limit or alter the rights
5 and powers vested in the Bonding Authority by this Law so as
6 to impair the terms of any contract made by the Bonding
7 Authority with those holders or in any way impair the rights
8 and remedies of those holders until the bonds, together with
9 interest thereon, with interest on any unpaid installments of
10 interest, and all costs and expenses in connection with any
11 action or proceedings by or on behalf of those holders, are
12 fully met and discharged. In addition, the State pledges to
13 and agrees with the holders of the bonds of the Bonding
14 Authority issued pursuant to this Law that the State will not
15 limit or alter the basis on which the proceeds of the Master
16 Settlement Agreement that the State of Illinois has sold to
17 the Bonding Authority are to be allocated, deposited, and
18 paid to the Authority as provided in this Law, or the use of
19 those funds, so as to impair the terms of any such contract.
20 The Bonding Authority is authorized to include these pledges
21 and agreements of the State in any contract with the holders
22 of bonds issued pursuant to this Section.
23 (j) The Bonding Authority may enter into agreements or
24 contracts with any person necessary or appropriate to place
25 the payment obligations of the Bonding Authority under any of
26 its bonds in whole or in part on any interest rate basis,
27 cash flow basis, or other basis desired by the Bonding
28 Authority, including without limitation agreements or
29 contracts commonly known as "interest rate swap agreements",
30 "forward payment conversion agreements", and "futures", or
31 agreements or contracts providing for payments based on
32 levels of or changes in interest rates, or agreements or
33 contracts to exchange cash flows or a series of payments, or
34 agreements or contracts, including without limitation
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1 agreements or contracts commonly known as "options", "puts",
2 or "calls", to hedge payment, rate spread, or similar
3 exposure; provided, that any such agreement or contract shall
4 not constitute an obligation for borrowed money and shall not
5 be taken into account under this Law or any other debt limit
6 of the Bonding Authority or the State of Illinois.
7 Section 10-45. Records and reporting. The Executive
8 Director shall keep a record of the proceedings of the
9 Bonding Authority. The State Treasurer shall be custodian of
10 all Bonding Authority funds and shall be bonded in the amount
11 the other members of the Bonding Authority may designate.
12 The accounts and books of the Bonding Authority shall be set
13 up and maintained in a manner approved by the Auditor
14 General, and the Bonding Authority shall file with the
15 Auditor General a certified annual report within 120 days
16 after the close of its fiscal year. The Bonding Authority
17 shall also file with the Governor, the Secretary of the
18 Senate, the Clerk of the House of Representatives, and the
19 Illinois Economic and Fiscal Commission, by March 1 of each
20 year, a written report covering its activities for the
21 previous fiscal year. After being so filed, the report shall
22 be a public record and open for inspection at the offices of
23 the Bonding Authority during normal business hours.
24 Section 10-50. Conflicts of interest. No member of the
25 Board may participate in any decision on any contract entered
26 into by the Bonding Authority if the member has a 7.5% or
27 greater pecuniary interest, direct or indirect, in any firm,
28 partnership, corporation, or association which is or may be a
29 party to the contract. Contracts or agreements obtained
30 through properly advertised bid procedures, or the ownership
31 of stock or other interest in any firm, partnership,
32 corporation, or association in which the member does not
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1 actively participate in day-to-day management, shall not be
2 interpreted as a direct or indirect pecuniary interest in
3 violation of this Law. Notwithstanding any other provision of
4 law, any contract or agreement entered into in conformity
5 with this subsection shall not be void or invalid by reason
6 of any such interest, nor shall any person so refraining from
7 participation be guilty of any offense, be removed from
8 office, or be subject to any other penalty on account of that
9 interest.
10 Section 10-55. Dissolution. The Tobacco Settlement
11 Bonding Authority shall be dissolved 20 years after the
12 effective date of this Law. The Bonding Authority shall not
13 be dissolved or liquidated by virtue of any proceedings
14 under, and shall not be subject to, any bankruptcy,
15 insolvency, or similar federal or State laws.
16 Section 10-60. Property exempt from execution. All
17 property of the Bonding Authority is exempt from levy and
18 sale by virtue of an execution. No execution or other
19 judicial process may issue against the Bonding Authority's
20 property, nor may any judgment against the Bonding Authority
21 be a charge or lien upon its property. However, nothing in
22 this Law shall apply to or limit the rights of the holder of
23 any bonds to pursue any remedy for the enforcement of any
24 pledge or lien given by the Bonding Authority on its revenues
25 or other money.
26 Section 10-65. Limitation. Any action or proceeding in
27 any court to set aside a resolution authorizing the Bonding
28 Authority's issuance of bonds under this Law or to obtain any
29 relief upon the ground that the resolution is invalid must be
30 commenced within 30 days after the Board adopts the
31 resolution. After this period of limitation expires, no right
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1 of action or defense founded upon the invalidity of the
2 resolution or any of its provisions may be asserted, nor may
3 the validity of the resolution or any of its provisions be
4 open to question in any court on any ground.
5 Section 10-70. Bonds as legal investments and security.
6 Notwithstanding any restrictions contained in any other law,
7 the State and all public officers, governmental units and
8 agencies of the State, all national banking associations,
9 state banks, trust companies, savings banks and institutions,
10 building and loan associations, savings and loan
11 associations, investment companies and other persons carrying
12 on a banking business, all insurance companies, insurance
13 associations and other persons carrying on an insurance
14 business, and all executors, administrators, guardians,
15 trustees and other fiduciaries, may legally invest any
16 sinking funds, money or other funds belonging to them or
17 within their control in any bonds issued by the Bonding
18 Authority under this Law. These bonds are authorized
19 security for any and all public deposits.
20 Section 10-75. Tax exemptions. All property of the
21 Bonding Authority and all bonds issued under this Law are
22 deemed to constitute essential public and governmental
23 purposes and the property and the bonds so issued, their
24 transfer and the income from those bonds are at all times
25 exempt from taxation within this State. For purposes of
26 Section 250 of the Illinois Income Tax Act, the exemption of
27 the income from bonds issued under this Act shall terminate
28 after all of the bonds have been paid. The amount of such
29 income that shall be added and then subtracted on the
30 Illinois income tax return of a taxpayer, pursuant to Section
31 203 of the Illinois Income Tax Act, from federal adjusted
32 gross income or federal taxable income in computing Illinois
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1 base income shall be the interest net of any bond premium
2 amortization.
3 Section 10-80. Personal liability. Neither the members
4 of the Board nor any person executing bonds issued under this
5 Law shall be liable personally on those bonds by reason of
6 the issuance of the bonds.
7 Section 10-85. Complete, additional, and alternative
8 methods. The foregoing Sections of this Law are deemed to
9 provide a complete, additional, and alternative method for
10 the doing of the things authorized thereby and shall be
11 regarded as supplemental and additional to powers conferred
12 by other laws, provided that the issuance of bonds under this
13 Law need not comply with the requirements of any other law
14 applicable to the issuance of bonds. Except as otherwise
15 expressly provided in this Law, none of the powers granted to
16 the Bonding Authority under this Law shall be subject to the
17 supervision or regulation or require the approval or consent
18 of any municipality or political subdivision or any
19 department, division, commission, board, body, bureau,
20 official, or agency thereof or of the State.
21 Section 10-90. Liberal construction of Law. This Law,
22 being necessary for the welfare of the State and its
23 inhabitants, shall be liberally construed to effect its
24 purposes.
25 Section 10-95. Severability. If any clause or other
26 portion of this Law is held invalid, that decision shall not
27 affect the validity of the remaining portions of this Law.
28 It is hereby declared that all such remaining portions of
29 this Law are severable, and that the General Assembly would
30 have enacted the remaining portions if the portions that may
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1 be so held to be invalid had not been included in this Law.
2 Article 90.
3 Section 90-5. The State Comptroller Act is amended by
4 changing Section 20 as follows:
5 (15 ILCS 405/20) (from Ch. 15, par. 220)
6 Sec. 20. Annual report. The comptroller shall annually,
7 as soon as possible after the close of the fiscal year but no
8 later than December 31, make out and present to the Governor,
9 the President of the Senate, the Speaker of the House of
10 Representatives, the Minority Leader of the Senate, and the
11 Minority Leader of the House of Representatives a report,
12 showing the amount of warrants drawn on the treasury, on
13 other funds held by the State Treasurer and on any public
14 funds held by State agencies, during the preceding fiscal
15 year, and stating, particularly, on what account they were
16 drawn, and if drawn on the contingent fund, to whom and for
17 what they were issued. The comptroller shall include in the
18 annual report an accounting of all amounts spent from each
19 of the special funds established under Section 5-15 of the
20 Health First Plan Law. He shall, also, at the same time,
21 report to the Governor, the President of the Senate, the
22 Speaker of the House of Representatives, the Minority Leader
23 of the Senate, and the Minority Leader of the House of
24 Representatives the amount of money received into the
25 treasury, into other funds held by the State Treasurer and
26 into any other funds held by State agencies during the
27 preceding fiscal year, and stating particularly, the source
28 from which the same may be derived, and also a general
29 account of all the business of his office during the
30 preceding fiscal year. The report shall also summarize for
31 the previous fiscal year the information required under
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1 Section 19.
2 Within 60 days after the expiration of each calendar
3 year, the comptroller shall compile, from records maintained
4 and available in his office, a list of all persons including
5 those employed in the office of the comptroller, who have
6 been employed by the State during the past calendar year and
7 paid from funds in the hands of the State Treasurer.
8 The list shall be arranged according to counties and
9 shall state in alphabetical order the name of each employee,
10 the address in the county in which he votes, except as
11 specified below, the position and the total salary paid to
12 him during the past calendar year. For persons employed by
13 the Department of Corrections, Department of Children and
14 Family Services and the Department of State Police no address
15 shall be listed. The list so compiled and arranged shall be
16 kept on file in the office of the comptroller and be open to
17 inspection by the public at all times.
18 No person who utilizes the names obtained from this list
19 for solicitation shall represent that such solicitation is
20 authorized by any officer or agency of the State of Illinois.
21 Violation of this provision is a Business Offense punishable
22 by a fine not to exceed $3,000.
23 (Source: P.A. 86-1003.)
24 Section 90-10. The Legislative Commission
25 Reorganization Act of 1984 is amended by changing Section
26 10-2 as follows:
27 (25 ILCS 130/10-2) (from Ch. 63, par. 1010-2)
28 Sec. 10-2. The Legislative Research Unit shall collect
29 information concerning the government and general welfare of
30 the State, examine the effects of constitutional provisions
31 and previously enacted statutes, consider important issues of
32 public policy and questions of state-wide interest, and
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1 perform research and provide information as may be requested
2 by the members of the General Assembly or as the Joint
3 Committee on Legislative Support Services considers necessary
4 or desirable.
5 The Legislative Research Unit shall maintain an
6 up-to-date computerized record of the information required to
7 be reported to it by Section 1 of "An Act concerning State
8 boards and commissions and amending a named Act", enacted by
9 the 86th General Assembly, which information shall be a
10 public record under The Freedom of Information Act. The
11 Legislative Research Unit may prescribe forms for making
12 initial reports and reports of change under that Section, and
13 may request information to verify compliance with that
14 Section.
15 Each year, the Legislative Research Unit shall evaluate
16 the allocations and expenditures of moneys from the special
17 funds established under Section 5-15 of the Health First Plan
18 Law and shall conduct program evaluations to determine the
19 impact of the system for distributing moneys paid to the
20 State under the Master Settlement Agreement as defined in
21 that Law. The Legislative Research Unit may enter into
22 contracts with public or private entities to conduct the
23 evaluations. The Legislative Research Unit shall report the
24 evaluation findings each year to the General Assembly.
25 (Source: P.A. 86-591.)
26 Section 90-15. The Illinois State Auditing Act is
27 amended by changing Section 3-2 as follows:
28 (30 ILCS 5/3-2) (from Ch. 15, par. 303-2)
29 Sec. 3-2. Mandatory and directed post audits. The
30 Auditor General shall conduct a financial audit of each State
31 agency except the Auditor General or his office at least once
32 during every biennium, except as is otherwise provided in
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1 regulations adopted under Section 3-8. At least once during
2 every biennium, the Auditor General shall conduct a financial
3 audit of all expenditures from the special funds established
4 under Section 5-15 of the Health First Plan Law. The general
5 direction and supervision of the financial audit program may
6 be delegated only to an individual who is a Certified Public
7 Accountant and a payroll employee of the Office of the
8 Auditor General. In the conduct of financial audits, the
9 Auditor General may inquire into and report upon matters
10 properly within the scope of a management or program audit,
11 provided that such inquiry shall be limited to matters
12 arising during the ordinary course of the financial audit.
13 In any year the Auditor General shall conduct any special
14 audits as may be necessary to form an opinion on the
15 financial report of this State, as prepared by the
16 Comptroller, and to certify that this presentation is in
17 accordance with generally accepted accounting principles for
18 government.
19 Simultaneously with the biennial financial audit of the
20 Department of Human Services, the Auditor General shall
21 conduct a program audit of each facility under the
22 jurisdiction of that Department that is described in Section
23 4 of the Mental Health and Developmental Disabilities
24 Administrative Act. The program audit shall include an
25 examination of the records of each facility concerning
26 reports of suspected abuse or neglect of any patient or
27 resident of the facility. The Auditor General shall report
28 the findings of the program audit to the Governor and the
29 General Assembly, including findings concerning patterns or
30 trends relating to abuse or neglect of facility patients and
31 residents. However, for any year for which the Inspector
32 General submits a report to the Governor and General Assembly
33 as required under Section 6.7 of the Abused and Neglected
34 Long Term Care Facility Residents Reporting Act, the Auditor
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1 General need not conduct the program audit otherwise required
2 under this paragraph.
3 The Auditor General shall conduct a management or program
4 audit of a State agency when so directed by the Commission,
5 or by either house of the General Assembly, in a resolution
6 identifying the subject, parties and scope. Such a directing
7 resolution may:
8 (a) require the Auditor General to examine and
9 report upon specific management efficiencies or cost
10 effectiveness proposals specified therein;
11 (b) in the case of a program audit, set forth
12 specific program objectives, responsibilities or duties
13 or may specify the program performance standards or
14 program evaluation standards to be the basis of the
15 program audit;
16 (c) be directed at particular procedures or
17 functions established by statute, by administrative
18 regulation or by precedent; and
19 (d) require the Auditor General to examine and
20 report upon specific proposals relating to state programs
21 specified in the resolution.
22 The Commission may by resolution clarify, further direct,
23 or limit the scope of any audit directed by a resolution of
24 the House or Senate, provided that any such action by the
25 Commission must be consistent with the terms of the directing
26 resolution.
27 (Source: P.A. 89-427, eff. 12-7-95; 89-507, eff. 7-1-97.)
28 Section 90-20. The State Finance Act is amended by adding
29 Sections 5.541, 5.542, 5.543, 5.544, 5.545, and 5.546 and
30 changing Section 6z-43 as follows:
31 (30 ILCS 105/5.541 new)
32 Sec. 5.541. The Smoking/Tobacco Control Trust Fund.
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1 (30 ILCS 105/5.542 new)
2 Sec. 5.542. The Healthy Communities Trust Fund.
3 (30 ILCS 105/5.543 new)
4 Sec. 5.543. The Seniors/Disabled Choices Trust Fund.
5 (30 ILCS 105/5.544 new)
6 Sec. 5.544. The Healthy Schools Trust Fund.
7 (30 ILCS 105/5.545 new)
8 Sec. 5.545. The Health and Medicine Endowment Fund.
9 (30 ILCS 105/5.546 new)
10 Sec. 5.546. The Health Infrastructure Fund.
11 (30 ILCS 105/6z-43)
12 Sec. 6z-43. Tobacco Settlement Recovery Fund. There is
13 created in the State Treasury a special fund to be known as
14 the Tobacco Settlement Recovery Fund into which shall be
15 deposited all monies paid to the State pursuant to (1) the
16 Master Settlement Agreement entered in the case of People of
17 the State of Illinois v. Philip Morris, et al. (Circuit Court
18 of Cook County, No. 96-L13146) and (2) any settlement with or
19 judgment against any tobacco product manufacturer other than
20 one participating in the Master Settlement Agreement in
21 satisfaction of any released claim as defined in the Master
22 Settlement Agreement, as well as any other monies as provided
23 by law. All earnings on Fund investments shall be deposited
24 into the Fund. Upon the creation of the Fund, the State
25 Comptroller shall order the State Treasurer to transfer into
26 the Fund any monies paid to the State as described in item
27 (1) or (2) of this Section before the creation of the Fund
28 plus any interest earned on the investment of those monies.
29 The State Treasurer shall administer the Fund as provided in
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1 the Health First Plan Law.
2 (Source: P.A. 91-646, eff. 11-19-99.)
3 Section 90-99. Effective date. This Act takes effect
4 upon becoming law.
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