Public Act 101-0630
 
SB2099 EnrolledLRB101 10599 HLH 55705 b


  
    AN ACT concerning finance.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 1. Short title. This Act may be cited as the 
Coronavirus Urgent Remediation Emergency Borrowing Act or the 
CURE Borrowing Act.
 
    Section 5. Findings and purpose. The General Assembly finds 
that:
    The State of Illinois is in the midst of both a public 
health emergency and a resultant fiscal crisis. The sudden 
worldwide outbreak of the Coronavirus Disease 2019 (COVID-19) 
and the spread of the disease in Illinois is causing dramatic 
economic upheaval and severe financial stress for individuals, 
businesses, health and other service providers, as well as  the 
State and local governments across Illinois. It has resulted in 
declarations of disaster from both the Governor and the 
President of the United States. The disaster has caused, and 
will continue to cause for some time to come, reductions in 
revenues for the State at the same time expenditures must be 
incurred to respond to the emergency. The State requires 
greater flexibility to borrow efficiently and respond 
effectively to urgent financial needs as they arise.
    The federal government has responded to the COVID-19 
pandemic with the passage of legislation that provides 
emergency funding to state and local governments. One of the 
new funding programs, found in Section 4003 of the federal 
Coronavirus Aid, Relief, and Economic Stabilization Act (CARES 
Act) provides a Municipal Liquidity Facility administered by 
the Federal Reserve Bank with support from the United States 
Department of the Treasury, through which funds are being made 
available so that state and local governments may borrow funds 
directly from the program. The State of Illinois has the 
authority to participate in this program, any subsequent State 
and municipal financing program created by federal legislation 
to provide relief from the coronavirus pandemic (collectively 
"federal coronavirus financing legislation"), and any similar 
program that may be offered by the federal government or the 
Federal Reserve Bank.
    The purpose of this Act is to revise the laws authorizing 
the State to borrow money and incur state debt so that the 
State will have needed flexibility in times of emergency, can 
borrow with enhanced efficiency in urgent circumstances, and 
can effectively utilize new borrowing programs and facilities 
offered by the United States Department of the Treasury and the 
Federal Reserve Bank, all while maintaining stringent 
standards for accountability and transparency.
 
    Section 10. Borrowing authorized. 
    (a) Borrowing under  this Section is authorized under 
subsection (b) of Section 9 of Article IX of the Illinois 
Constitution. The Governor, with the approval of the 
Comptroller and Treasurer, is authorized to borrow funds from 
the Federal Reserve Bank or its agent in accordance with the 
Municipal Liquidity Facility program established pursuant to 
Section 4003 of the federal CARES Act and Section 13(3) of the 
Federal Reserve Act, or in accordance with any other federal 
coronavirus financing legislation or similar program 
authorized by the United States Congress. The purposes for 
which borrowing is authorized include: 
        (1) to meet failures of revenue resulting from the 
    COVID-19 outbreak and to support the emergency response 
    thereto;
        (2) to provide funds for payment or reimbursement of 
    new or increased costs of State government resulting from 
    the COVID-19 outbreak and the emergency response thereto;
        (3) to provide funds to respond to any other disaster 
    or emergency or failure of revenues or the costs of 
    essential government services;
        (4) to provide funds for deposit into the Healthcare 
    Provider Relief Fund for payment of costs payable from the 
    Fund; and
        (5) to provide funds for payment or reimbursement of 
    costs payable from the Health Insurance Reserve Fund.
    Proceeds of the borrowing may also be used to pay the costs 
of borrowing and the debts created by the borrowing.
    (b) The Governor may borrow funds and contract debts from 
time to time, in principal amounts not to exceed $5,000,000,000 
outstanding at any time. Moneys thus borrowed shall be applied 
to any of the purposes described in this Section in accordance 
with properly enacted appropriations and transfers, or to pay 
the debts and associated expenses thus incurred, and to no 
other purpose. All proceeds from any borrowing under this Act, 
except those expended on the costs of issuance, shall be 
deposited into the Coronavirus Urgent Remediation Emergency 
Borrowing Fund (CURE Borrowing Fund). All moneys so borrowed 
shall be borrowed for no longer a time than  the time limit set 
forth in federal program rules and guidance, and in no event 
longer than 10 years, and shall be repaid in equal principal 
payments or as required by federal program rules and guidance, 
if such requirements exist.
 
    Section 15. Borrowing process. 
    (a) Whenever the borrowing of money under Section 10 is 
contemplated, the Director of the Governor's Office of 
Management and Budget, acting at the direction of the Governor, 
shall prepare for such borrowing in one or more series, in 
amounts, at prices and at interest rates, and in such manner as 
directed by the Governor.
    (b) The Director of the Governor's Office of Management and 
Budget, acting at the direction of the Governor, may negotiate 
and borrow directly from the Federal Reserve Bank or its agent 
in accordance with the Municipal Liquidity Facility program 
established pursuant to Section 4003 of the federal CARES Act 
and Section 13(3) of the Federal Reserve Act, or in accordance 
with any other federal coronavirus financing legislation or 
other program authorized by the United States Congress.
    (c) The rate of interest on any borrowing pursuant to this 
Act shall not exceed the maximum rate authorized by the Bond 
Authorization Act, as amended at the time of the making of the 
contract. The requirements of the Illinois Procurement Code 
requiring competitive requests for proposal shall not apply to 
the selection of a lender in accordance with this Section.
 
    Section 20. Bonds, notes, certificates or other 
facilities; appropriation. 
    (a) There shall be prepared, under the direction of the 
Governor, the form of bonds, notes, certificates or other 
facilities that the Governor deems advisable for borrowing 
pursuant to this Act. The bonds, notes, certificates or other 
facilities, when issued, shall be signed by the Governor and a 
record of their issuance shall be kept by the Comptroller. The 
interest on and principal of the debt shall be paid from the 
General Obligation Bond Retirement and Interest Fund.
    (b) There is appropriated on a continuing basis, out of any 
money in the State treasury, a sum sufficient for the payment 
of the interest on and principal of any debts contracted under 
this Act, and the irrevocable and continuing authority for and 
direction to the State Treasurer and the Comptroller to make 
the necessary transfers, as directed by the Governor.
    (c) The Governor is authorized to order, pursuant to the 
proceedings authorizing debts contracted under this Act, the 
transfer of any moneys on deposit in the State treasury into 
the General Obligation Bond Retirement and Interest Fund at 
times and in amounts the Governor deems necessary to provide 
for the payment of that interest and principal.
    (d) The Comptroller is authorized and directed to draw 
warrants on the State Treasurer for the amount of all payments 
of principal and interest on the bonds, notes, certificates or 
other facilities issued under this Act.
 
    Section 50. The State Finance Act is amended by adding 
Sections 5.934 and 6z-123 as follows:
 
    (30 ILCS 105/5.934 new)
    Sec. 5.934. The Coronavirus Urgent Remediation Emergency 
Borrowing Fund (CURE Borrowing Fund).
 
    (30 ILCS 105/6z-123 new)
    Sec. 6z-123. Coronavirus Urgent Remediation Emergency 
Borrowing Fund. The Coronavirus Urgent Remediation Emergency 
Borrowing Fund (CURE Borrowing Fund) is created as a special 
fund in the State treasury for the purpose of receiving 
proceeds from borrowings transacted pursuant to the 
Coronavirus Urgent Remediation Emergency Borrowing Act (CURE 
Borrowing Act) and for transferring and expending such moneys 
for the purposes authorized by that Act.
 
    Section 55. The Short Term Borrowing Act is amended  by 
changing Sections 1, 1.1, 2, and 3 as follows:
 



    (30 ILCS 340/1)  (from Ch. 120, par. 406)



    Sec. 1. Cash flow borrowing. Whenever significant timing 
variations
occur between disbursement and receipt of budgeted 
funds within a fiscal year,
making it necessary to borrow in 
anticipation of revenues to be collected in a
fiscal year,
in 
order to meet the same, the Governor, Comptroller and Treasurer

may contract debts, in an amount not exceeding 5%
of the 
State's appropriations for that fiscal year, and moneys thus 
borrowed
shall be applied to the purpose for which they were 
obtained, or to pay the costs of borrowing and the
debts thus 
created, and to no other purpose. All moneys so borrowed shall 
be
repaid by the close of the fiscal year in which borrowed.

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

 



    (30 ILCS 340/1.1)



    Sec. 1.1. Borrowing upon emergencies or failures in 
revenue. Whenever emergencies or failures in
revenues of the 
State occur, in order to meet deficits caused by those 
emergencies or 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 costs of borrowing and 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.  
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 7 30 
days after the
notice is served.  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 340/2)  (from Ch. 120, par. 407)



    Sec. 2. Sale of certificates. For borrowing authorized 
under Sections 1
and 1.1 of this Act, certificates may be 
issued and sold from time to time, in
one or more series, in 
amounts, at prices and at interest rates, all as
directed by 
the Governor, Comptroller, and Treasurer.  Bidders shall submit

sealed bids to the
Director of the
Governor's Office of 
Management and Budget upon such terms as shall be approved by

the Governor, Comptroller, and Treasurer after such notice as 
shall be
determined to be reasonable by the Director of the

Governor's Office of Management and Budget.  The
loan shall be 
awarded to the bidder offering the lowest effective rate of

interest not exceeding the maximum rate authorized by the Bond 
Authorization
Act as amended at the time of the making of the 
contract.
    However, for borrowing authorized under Sections 1 and 1.1 
of this Act during fiscal years 2020 and 2021 only, 
certificates may be issued and sold on a negotiated basis 
rather than by sealed bid from time to time, in one or more 
series, in amounts, at prices and at interest rates, and in 
such manner, all as directed by the Governor, Comptroller, and 
Treasurer. The rate of interest must not exceed the maximum 
rate authorized by the Bond Authorization Act as amended at the 
time of the making of the contract. The requirements of the 
Illinois Procurement Code shall not apply to the selection of 
the purchaser of any certificates sold in accordance with the 
provisions of this paragraph. 

    With respect to instruments for the payment of money issued 
under this
Section either before, on, or after the effective 
date of this amendatory
Act of 1989, it is and always has been 
the intention of the General
Assembly (i) that the Omnibus Bond 
Acts are and always have been
supplementary grants of power to 
issue instruments in accordance with the
Omnibus Bond Acts, 
regardless of any provision of this Act that may appear
to be 
or to have been more restrictive than those Acts, (ii) that the

provisions of this Section are not a limitation on the 
supplementary
authority granted by the Omnibus Bond Acts, and 
(iii) that instruments
issued under this Section within the 
supplementary authority granted
by the Omnibus Bond Acts are 
not invalid because of any provision of
this Act that may 
appear to be or to have been more restrictive than
those Acts.

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

 



    (30 ILCS 340/3)  (from Ch. 120, par. 408)


    Sec. 3. There shall be prepared under the direction of the 
officers
named in this Act such form of bonds or certificates 
as they shall deem
advisable, which, when issued, shall be 
signed by the Governor, Comptroller
and Treasurer, and shall be 
recorded by the Comptroller in a
book to be kept by him or her 
for that purpose.  The interest and principal
of such 
certificates loan shall be paid by the Treasurer treasurer out 
of the General Obligation Bond
Retirement and Interest Fund.

    There is hereby appropriated out of any money in the 
Treasury a sum
sufficient for the payment of the interest and 
principal of any debts
contracted under this Act.

    The Governor, Comptroller, and Treasurer are
authorized to 
order pursuant to the proceedings authorizing those debts the

transfer of any moneys on deposit in the treasury into the 
General
Obligation Bond Retirement and Interest Fund at times 
and in amounts they
deem necessary to provide for the payment 
of that interest and principal.

    The Comptroller is hereby authorized and directed to draw 
his warrant on
the State Treasurer for the amount of all such 
payments.

    The directive authorizing borrowing under Section 1 or 1.1 
of this Act
shall set forth a pro forma cash flow statement 
that identifies estimated
monthly receipts and expenditures 
with identification of sources for
repaying the borrowed funds.

(Source: P.A. 101-275, eff. 8-9-19.)

 

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