Public Act 096-0958
 
SB3660 Enrolled LRB096 20362 HLH 35999 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
ARTICLE 1. EMERGENCY BUDGET ACT OF FISCAL YEAR 2011

 
    Section 1-1. Short title. This Act may be cited as the
Emergency Budget Act of Fiscal Year 2011. References in this
Article to "this Act" mean this Article.
 
    Section 1-5. Legislative intent and purpose. The General
Assembly hereby finds and declares that the State is confronted
with an unprecedented fiscal crisis. It is the purpose of this
Act to authorize changes in State programs that are necessary
to implement the State fiscal year 2011 budget. It is also the
purpose of this Act to implement budget measures that
prioritize the payment of vouchers that (i) were submitted to
the State Comptroller prior to July 1, 2010 and (ii) are at
least 60 days past due on the effective date of this Act. This
Act is to be liberally construed and interpreted in a manner
that allows the State to address the fiscal crisis for the
State fiscal year 2011.
 
    Section 1-10. Designation of contingency reserve.
Beginning on July 1, 2010 and until January 9, 2011, the
Governor may designate amounts to be set aside as a contingency
reserve from the amounts appropriated from the General Revenue
Fund, the Common School Fund, the Education Assistance Fund,
and any special fund of the State for State fiscal year 2011
for all boards, commissions, agencies, institutions,
authorities, colleges, universities, and bodies politic and
corporate of the State, but not other constitutional officers,
the legislative or judicial branch, the office of the Executive
Inspector General, or the Executive Ethics Commission. The
total contingency reserve may not exceed one-third of the sum
of (i) the total dollar amount of vouchers that have been
submitted to the State Comptroller for payment but for which
warrants have not been issued by the Comptroller as of July 1,
2010 and (ii) the total dollar amount of any fiscal year 2010
mandated statutory transfers that have not been executed as of
July 1, 2010. The State Comptroller shall certify the total
dollar amount of those outstanding vouchers and transfers to
the Governor on or before July 8, 2010.
 
    Section 1-15. Contingency reserve restrictions. Until
January 9, 2011, the amounts placed in contingency reserve
shall not be transferred, obligated, encumbered, expended, or
otherwise committed unless the Governor authorizes the removal
of the amounts from the contingency reserve or the State, by an
Act of the 96th General Assembly, generates incremental
revenues sufficient to support such transfers, obligations,
encumbrances, expenditures, or other commitments.
 
    Section 1-20. All State programs subject to appropriation.
Notwithstanding any other Act to the contrary, during State
fiscal year 2011, any expenditure from State funds authorized
or required by any State law are made subject to appropriation
through January 9, 2011 of that fiscal year. No moneys shall be
obligated or expended during that time unless they are
supported by available State fiscal year 2011 appropriations
that are not otherwise obligated or reserved pursuant to
Section 1-10 of this Act. The provisions of this Section do not
apply to non-appropriated funds, non-appropriated accounts,
locally held funds, or appropriations with continuing
authority.
 
    Section 1-25. State agencies; review of contracts. As soon
as possible after the effective date of this Act, each State
agency of the executive branch shall review each of its
existing contracts. Those State agencies shall seek to modify
or terminate and re-bid those contracts if, upon review of the
contract, the agency determines that it is in the best interest
of the State to do so. For the purposes of this Section,
"contract" has the meaning ascribed to that term in the
Illinois Procurement Code.
 
    Section 1-35. Act takes precedence. In case of any conflict
between the provisions of this Act and any other law, executive
order, or administrative regulation, the provisions of this Act
prevail and control.
 
    Section 1-90. Repealer. This Act is repealed on July 1,
2011.
 
ARTICLE 3. RAILSPLITTER TOBACCO SETTLEMENT AUTHORITY ACT

 
    Section 3-1. Short title. This Act may be cited as the
Railsplitter Tobacco Settlement Authority Act. References in
the Article to "this Act" mean this Article.
 
    Section 3-2. Definitions. In this Act words or terms shall
have the following meanings unless the context or usage clearly
indicates that another meaning is intended.
    (a) "Authority" means the Railsplitter Tobacco Settlement
Authority created and established pursuant to Section 3-4 of
this Act.
    (b) "Authorized officer" means any of the members of the
Authority identified and described in Section 3-4 of this Act.
    (c) "Bond" means any instrument evidencing the obligation
to pay money authorized or issued by or on behalf of the
Authority pursuant to the authorization granted by this Act,
including without limitation, bonds, notes, or certificates.
    (d) "Bondholder" means, in the case of a bond issued in
registered form, the registered owner of the bond and
otherwise, the owner of the bond.
    (e) "Budget Director" means the Director of the Governor's
Office of Management and Budget.
    (f) "Consent Decree" means the Consent Decree and Final
Judgment of the Circuit Court of Cook County, Illinois, dated
December 8, 1998, as the same has been and may be corrected,
amended or modified, in the action entitled People of the State
of Illinois v. Philip Morris Incorporated, et al. (No. 96 L
13146).
    (g) "Master Settlement Agreement" means the Master
Settlement Agreement, dated November 23, 1998, among the
attorneys general of 46 states, including the State of
Illinois, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the United States Virgin Islands, American Samoa
and the Territory of the Northern Mariana Islands, on the one
hand, and certain tobacco manufacturers, on the other hand, and
the subject of the Consent Decree.
    (h) "Master Settlement Escrow Agent" means the escrow agent
under the Master Settlement Agreement.
    (i) "Net proceeds of bonds" means the gross proceeds of the
sale of bonds issued under Section 3-6 of this Act, less any
amounts applied or to be applied to pay transaction and
administrative expenses, including underwriting discount, and
to fund any reserves deemed necessary or appropriate by the
Authority, but does not include any investment earnings
realized thereon.
    (j) "Participating manufacturer" means a tobacco product
manufacturer that is or becomes a signatory to the Master
Settlement Agreement.
    (k) "Pledged tobacco revenues" means the State's tobacco
settlement revenues sold to the Authority pursuant to the sale
agreement and pledged by the Authority for the payment of bonds
and any related bond facility.
    (l) "Qualifying statute" has the meaning given that term in
the Master Settlement Agreement, constituting the Tobacco
Product Manufacturers' Escrow Act.
    (m) "Related bond facility" means any interest rate
exchange or similar agreement or any bond insurance policy,
letter of credit or other credit enhancement facility,
liquidity facility, guaranteed investment or reinvestment
agreement, or other similar agreement, arrangement or
contract.
    (n) "Residual interest in tobacco settlement revenues"
means any tobacco settlement revenues determined as moneys are
received, to be not required for the identified period in which
revenues are received, to pay principal or interest on bonds or
administrative or transaction expenses of the Authority or to
fund reserves or other requirements relating to bonds issued or
related bond facilities made under this Act.
    (o) "Sale agreement" means any agreement authorized
pursuant to this Act in which the State provides for the sale
of all or a portion of the tobacco settlement revenues to the
Authority.
    (p) "State" means the State of Illinois.
    (q) "State Finance Act" means the State Finance Act of the
State, as amended (30 ILCS 105/1 et seq.).
    (r) "Tobacco settlement bond proceeds account" means the
Account by that name within the Tobacco Settlement Recovery
Fund established under Section 6z-43(a) of the State Finance
Act.
    (s) "Tobacco Settlement Residual Account" means the
Account by that name within the Tobacco Settlement Recovery
Fund established under Section 6z-43(a) of the State Finance
Act.
    (t) "Tobacco settlement revenues" means all tobacco
settlement payments received by the State on and after the
effective date of this Act and required to be made, pursuant to
the terms of the Master Settlement Agreement, by participating
manufacturers and the State's rights to receive the tobacco
settlement payments on and after the effective date of this
Act, exclusive of any payments made with respect to liability
to make those payments for calendar years completed before the
effective date of this Act.
 
    Section 3-3. Transfer and sale of State's right to tobacco
settlement revenues. During fiscal years 2010 and 2011, the
State may sell, convey, or otherwise transfer to the Authority
the tobacco settlement revenues in exchange for the net
proceeds of bonds and a right to the residual interest in
tobacco settlement revenues. Unless otherwise directed by
statute, the net proceeds of bonds shall be deposited in the
Tobacco Settlement Bond Proceeds Account, and the residual
interest in tobacco settlement revenues received by the State
from time to time shall be deposited in the Tobacco Settlement
Residual Account, in each case to be applied for the purposes
and in the manner described in this Act and in Section 6z-43 of
the State Finance Act.
    Any sale, conveyance, or other transfer authorized by this
Section shall be evidenced by an instrument or agreement in
writing signed on behalf of the State by the Governor. A
certified copy of the instrument or agreement shall be filed
with the Governor, Comptroller, Treasurer, Budget Director,
Speaker and Minority Leader of the House of Representatives,
President and Minority Leader of the Senate, and the Commission
on Government Forecasting and Accountability promptly upon
execution and delivery thereof. The instrument or agreement may
include an irrevocable direction to the Master Settlement
Escrow Agent to pay all or a specified portion of the tobacco
settlement revenues directly to or upon the order of the
Authority, or to any escrow agent or any trustee under an
indenture or other agreement securing any bonds issued or
related bond facilities made under this Act. Upon execution and
delivery of the sale agreement as provided in this Act, the
sale, conveyance, or other transfer of the right to receive the
tobacco settlement revenues, shall, for all purposes, be a true
sale and absolute conveyance of all right, title, and interest
therein and not as a pledge or other security interest for any
borrowing, valid, binding, and enforceable in accordance with
the terms thereof and such instrument or agreements and any
related instrument, agreement, or other arrangement, including
any pledge, grant of security interest, or other encumbrance
made by Authority to secure any bonds issued by the Authority,
and shall not be subject to disavowal, disaffirmance,
cancellation, or avoidance by reason of insolvency of any
party, lack of consideration, or any other fact, occurrence, or
rule of law. On and after the effective date of the sale of any
portion (including all) of the tobacco settlement revenues, the
State shall have no right, title or interest in or to the
portion of the tobacco settlement revenues sold, and the
portion of the tobacco settlement revenues so sold shall be the
property of the Authority, and shall be received, held and
disbursed by the Authority in a trust fund outside the State
treasury. Any portions of the tobacco settlement revenues sold
and held in trust shall be invested in accordance with the
Public Funds Investment Act.
    The State may not transfer any right to those amounts
received by the State which were deposited into the Disputed
Payments Account or withheld in accordance with Section
XI(f)(2) of the Master Settlement Agreement prior to the
closing of any bonds issued pursuant to this Act.
    The procedures and requirements set forth in this Section
shall be the sole procedures and requirements applicable to the
sale of the tobacco settlement revenues.
 
    Section 3-4. Establishment and Powers of Authority. The
Authority is hereby established as a special purpose
corporation which shall be body corporate and politic of, but
having a legal existence independent and separate from, the
State and, accordingly, the assets, liabilities, and funds of
the Authority shall be neither consolidated nor commingled with
those of the State treasury. The Authority and its corporate
existence shall continue until 6 months after all its
liabilities have been met or otherwise discharged. Upon the
termination of the existence of the Authority, all of its
rights and property shall pass to and be vested in the State.
The Authority shall be established for the express limited
public purposes set forth in this Act, and no part of the net
earnings of the Authority shall inure to any private
individual.
    The Authority shall be governed by a 3-member board
consisting of the Budget Director and two other members
appointed by the Governor. The powers of the Authority shall be
subject to the terms, conditions, and limitations contained
within this Act, and any applicable covenants or agreements of
the Authority in any indenture or other agreement relating to
any then outstanding bonds or related bond facilities. The
Authority may enter into contracts regarding any matter
connected with any corporate purpose within the objects and
purposes of this Act. The members of the Authority and the
Chief Financial Officer of the Authority shall receive no
salary or other compensation, either direct or indirect, for
serving as members of the Authority, other than reimbursement
for actual and necessary expenses incurred in the performance
of such person's duties. The Authority may elect one of its
members as chairman, who shall sign instruments or agreements
authorized by this Act on behalf of the Authority. The
Authority may also appoint a Chief Financial Officer of the
Authority who may or may not be a member of the Authority in
order to provide financial analysis and advice regarding any
transaction of the Authority. Notwithstanding the foregoing,
the Authority shall not be authorized to make any covenant,
pledge, promise or agreement purporting to bind the State with
respect to tobacco settlement revenues, except as otherwise
specifically authorized by this Act.
    The Authority may not file a voluntary petition under or be
or become a debtor or bankrupt under the federal bankruptcy
code or any other federal or State bankruptcy, insolvency, or
moratorium law or statute as may, from time to time, be in
effect and neither any public officer nor any organization,
entity, or other person shall authorize the Authority to be or
become a debtor or bankrupt under the federal bankruptcy code
or any other federal or State bankruptcy, insolvency, or
moratorium law or statute, as may, from time to time be in
effect.
    The Authority may not guarantee the debts of another.
 
    Section 3-5. Certain powers of the Authority. The Authority
shall have the power to:
    (1) sue and be sued;
    (2) have a seal and alter the same at pleasure;
    (3) make and alter by-laws for its organization and
internal management and make rules and regulations governing
the use of its property and facilities;
    (4) appoint by and with the consent of the Attorney
General, assistant attorneys for such Authority; those
assistant attorneys shall be under the control, direction, and
supervision of the Attorney General and shall serve at his or
her pleasure;
    (5) retain special counsel, subject to the approval of the
Attorney General, as needed from time to time, and fix their
compensation, provided however, such special counsel shall be
subject to the control, direction and supervision of the
Attorney General and shall serve at his or her pleasure;
    (6) make and execute contracts and all other instruments
necessary or convenient for the exercise of its powers and
functions under this Section and to commence any action to
protect or enforce any right conferred upon it by any law,
contract, or other agreement, provided that any underwriter,
financial advisor, bond counsel, or other professional
providing services to the Authority may be selected pursuant to
solicitations issued and completed by the Governor's Office of
Management and Budget for those services;
    (7) appoint officers and agents, prescribe their duties and
qualifications, fix their compensation and engage the services
of private consultants and counsel on a contract basis for
rendering professional and technical assistance and advice,
provided that this shall not be construed to limit the
authority of the Attorney General provided in Section 4 of the
Attorney General Act;
    (8) pay its operating expenses and its financing costs,
including its reasonable costs of issuance and sale and those
of the Attorney General, if any, in a total amount not greater
than 1% of the principal amount of the proceeds of the bond
sale;
    (9) borrow money in its name and issue negotiable bonds and
provide for the rights of the holders thereof as otherwise
provided in this Act;
    (10) procure insurance against any loss in connection with
its activities, properties, and assets in such amount and from
such insurers as it deems desirable;
    (11) invest any funds or other moneys under its custody and
control in investment securities or under any related bond
facility;
    (12) as security for the payment of the principal of and
interest on any bonds issued by it pursuant to this Act and any
agreement made in connection therewith and for its obligations
under any related bond facility, pledge all or any part of the
tobacco settlement revenues;
    (13) do any and all things necessary or convenient to carry
out its purposes and exercise the powers expressly given and
granted in this Section.
 
    Section 3-6. Bonds of the Authority.
    (a) The Authority shall have power and is hereby authorized
to issue bonds, in an amount no greater than $1,750,000,000, to
provide sufficient funds for the purchase of all or a portion
of the tobacco settlement revenues pursuant to Section 3-3 of
this Act and the payment or provision for financing costs.
    The issuance of bonds shall be authorized by a resolution
of the Authority, adopted by a majority of the members of the
Authority without further authorization or approval. The issue
of the bonds of the Authority shall be special revenue
obligations payable from and secured by a pledge of the pledged
tobacco revenues, those proceeds of such bonds deposited in a
reserve fund for the benefit of bondholders, and earnings on
funds of the Authority, upon such terms and conditions as
specified by the Authority in the resolution under which the
bonds are issued or in a related trust indenture.
    The Authority shall have the power and is hereby authorized
from time to time to issue bonds, whenever it deems refunding
expedient, to refund any outstanding bonds by the issuance of
new bonds, provided that the refunding debt matures within the
term of the bonds to be refunded. The refunding bonds may be
exchanged for the bonds to be refunded or sold and the proceeds
applied to the purchase, redemption, or payment of such bonds.
    (b) The bonds of each issue shall be dated, shall bear
interest (which may be includable in or excludable from the
gross income of the owners for federal income tax purposes) at
such fixed or variable rates, payable at or prior to maturity,
and shall mature at such time or times, not more than 19 years
after the date of issuance, as may be determined by the
Authority and may be made redeemable before maturity, at the
option of the Authority, at such price or prices and under such
terms and conditions as may be fixed by the Authority. The
principal and interest of such bonds may be made payable in any
lawful medium. The resolution or the certificate of the officer
of the Authority approving the issuance of the bonds shall
determine the form of the bonds and the manner of execution of
the bonds and shall fix the denomination or denominations of
the bonds and the place or places of payment of principal and
interest thereof, which may be at any bank or trust company
within or outside the State. If any officer whose signature or
a facsimile thereof appears on any bonds shall cease to be such
officer before the delivery of such bonds, such signature or
facsimile shall nevertheless be valid and sufficient for all
purposes the same as if he had remained in office until such
delivery.
    (c) The Authority may sell such bonds pursuant to notice of
sale and public bid or by negotiated sale in accordance with
the corresponding procedures applicable to like sales of
general obligation bonds under Section 11 of the General
Obligation Bond Act. The proceeds of such bonds shall be
disbursed for the purposes for which such bonds were issued
under such restrictions as the sale agreement and the
resolution authorizing the issuance of such bonds or the
related trust indenture may provide. Such bonds shall be issued
upon approval of the Authority and without any other approvals,
filings, proceedings or the happening of any other conditions
or things other than the approvals, findings, proceedings,
conditions, and things that are specified and required by this
Act.
    (d) Any pledge made by the Authority shall be valid and
binding at the time the pledge is made. The assets, property,
revenues, reserves, or earnings so pledged shall immediately be
subject to the lien of such pledge without any physical
delivery thereof or further act and the lien of any such pledge
shall be valid and binding as against all parties having claims
of any kind in tort, contract, or otherwise against the
Authority, irrespective of whether such parties have notice
thereof. Notwithstanding any other provision of law to the
contrary, neither the resolution nor any indenture or other
instrument by which a pledge is created or by which the
Authority's interest in pledged assets, property, revenues,
reserves, or earnings thereon is assigned need be filed,
perfected or recorded in any public records in order to protect
the pledge thereof or perfect the lien thereof as against third
parties, except that a copy thereof shall be filed in the
records of the Authority.
    (e) Whether or not the bonds of the Authority are of such
form and character as to be negotiable instruments under the
terms of the Uniform Commercial Code, the bonds are hereby made
negotiable instruments for all purposes, subject only to the
provisions of the bonds for registration.
    (f) At the sole discretion of the Authority, any bonds
issued by the Authority and any related bond facility made
under the provisions of this Act shall be secured by a
resolution or trust indenture by and between the Authority and
the indenture trustee, which may be any trust company or bank
having the powers of a trust company, whether located within or
outside the State. Such trust indenture or resolution providing
for the issuance of such bonds shall, without limitation, (i)
provide for the creation and maintenance of such reserves as
the Authority shall determine to be proper; (ii) include
covenants setting forth the duties of the Authority in relation
to the bonds, the income of the Authority, the related sale
agreement and the related tobacco settlement revenues; (iii)
contain provisions relating to the prompt transfer of the
residual interest upon receipt of the tobacco settlement
revenues; (iv) contain provisions respecting the custody,
safeguarding, and application of all moneys and securities; (v)
contain such provisions for protecting and enforcing against
the Authority or the State the rights and remedies (pursuant
thereto and to the sale agreement) of the owners of the bonds
and any provider of a related bond facility as may be
reasonable and proper and not in violation of law; and (vi)
contain such other provisions as the Authority may deem
reasonable and proper for priorities and subordination among
the owners of the bonds and providers of related bond
facilities. Any reference in this Act to a resolution of the
Authority shall include any trust indenture authorized
thereby.
    (g) The net proceeds of bonds and any earnings thereon
shall never be pledged to, nor made available for, payment of
the bonds or any interest or redemption price thereon or any
other debt or obligation of the Authority. The net proceeds of
bonds shall be deposited by the State in the Tobacco Settlement
Bond Proceeds Account, and shall be used by the State (either
directly or by reimbursement) for the payment of outstanding
obligations of the General Revenue Fund or to supplement the
Tobacco Settlement Residual Account to pay for appropriated
obligations of the Tobacco Settlement Recovery Fund for State
fiscal year 2011 through 2013. Any residual interest in tobacco
settlement revenues shall be deposited in the Tobacco
Settlement Residual Account, and shall be used by the State
(either directly or by reimbursement) in accordance with
Section 6z-43 of the State Finance Act for appropriated
obligations of the Tobacco Settlement Recovery Fund. With
respect to any bonds of the Authority, the interest on which is
intended to be excludable from the gross income of the owners
for federal income tax purposes, the Authority and the
authorized officers may provide restrictions on the use of net
proceeds of bonds and other amounts in the sale agreement or
otherwise in a tax regulatory agreement only as necessary to
assure such tax-exempt status.
    (h) The Authority may enter into, amend, or terminate, as
it determines to be necessary or appropriate, any related bond
facility (i) to facilitate the issuance, sale, resale,
purchase, repurchase, or payment of bonds, interest rate
savings or market diversification, or the making or performance
of swap contracts, including without limitation bond
insurance, letters of credit and liquidity facilities, or (ii)
to attempt to manage or hedge risk or achieve a desirable
effective interest rate or cash flow. Such facility shall be
made upon the terms and conditions established by the
Authority, including without limitation provisions as to
security, default, termination, payment, remedy, jurisdiction
and consent to service of process.
    (i) The Authority may enter into, amend, or terminate, as
it deems to be necessary or appropriate, any related bond
facility to place the obligations or investments of the
Authority, as represented by the bonds or the investment of
reserves securing the bonds or related bond facilities or other
tobacco settlement revenues or its other assets, in whole or in
part, on the interest rate, cash flow, or other basis approved
by the Authority, which facility may include without limitation
contracts commonly known as interest rate swap agreements,
forward purchase contracts, or guaranteed investment contracts
and futures or contracts providing for payments based on levels
of, or changes in, interest rates. These contracts or
arrangements may be entered into by the Authority in connection
with, or incidental to, entering into, or maintaining any (i)
agreement which secures bonds of the Authority or (ii)
investment or contract providing for investment of reserves or
similar facility guaranteeing an investment rate for a period
of years not to exceed the underlying term of the bonds. The
determination by the Authority that a related bond facility or
the amendment or termination thereof is necessary or
appropriate as aforesaid shall be conclusive. Any related bond
facility may contain such provisions as to security, default,
termination, payment, remedy, jurisdiction, and consent to
service of process and other terms and conditions as determined
by the Authority, after giving due consideration to the
creditworthiness of the counterparty or other obligated party,
including any rating by any nationally recognized rating
agency, and any other criteria as may be appropriate.
    (j) Bonds or any related bond facility may contain a
recital that they are issued or executed, respectively,
pursuant to this Act, which recital shall be conclusive
evidence of their validity, respectively, and the regularity of
the proceedings relating thereto.
 
    Section 3-7. State not liable on bonds or related bond
facilities. No bond or related bond facility shall constitute
an indebtedness or an obligation of the State of Illinois or
any subdivision thereof, within the purview of any
constitutional or statutory limitation or provision or a charge
against the general credit or taxing powers, if any, of any of
them but shall be payable solely from pledged tobacco revenues.
No owner of any bond or provider of any related bond facility
shall have the right to compel the exercise of the taxing power
of the State to pay any principal installment of, redemption
premium, if any, or interest on the bonds or to make any
payment due under any related bond facility.
 
    Section 3-8. Agreement with the State.
    (a) The State pledges and agrees with the Authority, and
the owners of the bonds of the Authority in which the Authority
has included such pledge and agreement, that the State shall
(i) irrevocably direct the escrow agent under the Master
Settlement Agreement to transfer all pledged tobacco revenues
directly to the Authority or its assignee, (ii) enforce its
right to collect all moneys due from the participating
manufacturers under the Master Settlement Agreement and, in
addition, shall diligently enforce the qualifying statute as
contemplated in Section IX(d)(2)(B) of the Master Settlement
Agreement against all nonparticipating manufacturers selling
tobacco products in the State and that are not in compliance
with the qualifying statute, in each case in the manner and to
the extent deemed necessary in the judgment of and consistent
with the discretion of the Attorney General of the State,
provided, however, that the sale agreement shall provide (a)
that the remedies available to the Authority and the
bondholders for any breach of the pledges and agreements of the
State set forth in this clause shall be limited to injunctive
relief, and (b) that the State shall be deemed to have
diligently enforced the qualifying statute so long as there has
been no judicial determination by a court of competent
jurisdiction in this State, in an action commenced by a
participating tobacco manufacturer under the Master Settlement
Agreement, that the State has failed to diligently enforce the
qualifying statute for the purposes of Section IX(d)(2)(B) of
the Master Settlement Agreement, (iii) in any materially
adverse way, neither amend the Master Settlement Agreement nor
the Consent Decree or take any other action that would (a)
impair the Authority's right to receive pledged tobacco
revenues, or (b) limit or alter the rights hereby vested in the
Authority to fulfill the terms of its agreements with the
bondholders, or (c) impair the rights and remedies of such
bondholders or the security for such bonds until such bonds,
together with the interest thereon and all costs and expenses
in connection with any action or proceedings by or on behalf of
such bondholders, are fully paid and discharged (provided, that
nothing herein shall be construed to preclude the State's
regulation of smoking, smoking cessation activities and laws,
and taxation and regulation of the sale of cigarettes or the
like or to restrict the right of the State to amend, modify,
repeal, or otherwise alter statutes imposing or relating to the
taxes), and (iv) not amend, supersede or repeal the Master
Settlement Agreement or the qualifying statute in any way that
would materially adversely affect the amount of any payment to,
or the rights to such payments of, the Authority or such
bondholders. This pledge and agreement may be included in the
sale agreement and the Authority may include this pledge and
agreement in any contract with the bondholders of the
Authority.
    (b) The provisions of this Act, the bonds issued pursuant
to this Act, and the pledges and agreements by the State and
the Authority to the bondholders shall not be interpreted or
construed to limit or impair the authority or discretion of the
Attorney General to administer and enforce provisions of the
Master Settlement Agreement or to direct, control, and settle
any litigation or arbitration proceeding arising from or
relating to the Master Settlement Agreement.
 
    Section 3-9. Enforcement of contract. The provisions of
this Act and of any resolution or proceeding authorizing the
issuance of bonds or a related bond facility shall constitute a
contract with the holders of the bonds or the related bond
facility, and the provisions thereof shall be enforceable
either by mandamus or other proceeding in any Illinois court of
competent jurisdiction to enforce and compel the performance of
all duties required by this Act and by any resolution
authorizing the issuance of bonds a related bond facility
adopted in response hereto.
 
    Section 3-10. Bonds as legal investments. The State and all
counties, cities, villages, incorporated towns and other
municipal corporations, political subdivisions and public
bodies, and public officers of any thereof, all banks, bankers,
trust companies, savings banks and institutions, building and
loan associations, savings and loan associations, investment
companies, and other persons carrying on a banking business,
all insurance companies, insurance associations, and other
persons carrying on an insurance business, and all executors,
administrators, guardians, trustees, and other fiduciaries may
legally invest any sinking funds, moneys, or other funds
belonging to them or within their control in any bonds issued
pursuant to this Act, it being the purpose of this Section to
authorize the investment in such bonds of all sinking,
insurance, retirement, compensation, pension, and trust funds,
whether owned or controlled by private or public persons or
officers; provided, however, that nothing contained in this
Section may be construed as relieving any person, firm, or
corporation from any duty of exercising reasonable care in
selecting securities for purchase or investment.
 
    Section 3-12. Exemption from taxation. It is hereby
determined that the creation of the Authority and the carrying
out of its corporate purposes are in all respects for the
benefit of the people of the State and are public purposes.
Accordingly, the property of the Authority, its income and its
operations shall be exempt from taxation. The Authority shall
not be required to pay any fees, taxes or assessments of any
kind, whether state or local, including, but not limited to,
fees, taxes, ad valorem taxes on real property, sales taxes or
other taxes, upon or with respect to any property owned by it
or under its jurisdiction, control or supervision, or upon the
uses thereof, or upon or with respect to its activities or
operations in furtherance of the powers conferred upon it by
this Act.
 
    Section 3-13. Illinois State Auditing Act. The Auditor
General shall conduct financial audits and program audits of
the Authority, in accordance with the Illinois State Auditing
Act.
 
    Section 3-15. Supplemental nature of Act; construction and
purpose. The powers conferred by this Act shall be in addition
to and supplemental to the powers conferred by any other law,
general or special, and may be exercised notwithstanding the
provisions of any other such law. Insofar as the provisions of
this Act are inconsistent with the provisions of any other law,
general or special, the provisions of this Act shall be
controlling.
 
    Section 3-16. Severability. If any provision of this Act is
held invalid, such provision shall be deemed to be excised and
the invalidity thereof shall not affect any of the other
provisions of this Act. If the application of any provision of
this Act to any person or circumstance is held invalid, it
shall not affect the application of such provision to such
persons or circumstances other than those as to which it is
held invalid.
 
ARTICLE 5. AMENDATORY PROVISIONS

 
    Section 5-5. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
 
    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
    Sec. 5-45. Emergency rulemaking.
    (a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
    (b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
    (c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24 month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24 month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, or (iv) emergency
rules adopted pursuant to subsection (n) of this Section, or
(v) emergency rules adopted pursuant to subsection (o) of this
Section. Two or more emergency rules having substantially the
same purpose and effect shall be deemed to be a single rule for
purposes of this Section.
    (d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
    (e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of this amendatory
Act of the 91st General Assembly or any other budget initiative
for fiscal year 2000 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (e). The adoption of emergency rules authorized by
this subsection (e) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of this amendatory
Act of the 91st General Assembly or any other budget initiative
for fiscal year 2001 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (f). The adoption of emergency rules authorized by
this subsection (f) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of this amendatory
Act of the 92nd General Assembly or any other budget initiative
for fiscal year 2002 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (g). The adoption of emergency rules authorized by
this subsection (g) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of this amendatory
Act of the 92nd General Assembly or any other budget initiative
for fiscal year 2003 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (h). The adoption of emergency rules authorized by
this subsection (h) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of this amendatory
Act of the 93rd General Assembly or any other budget initiative
for fiscal year 2004 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (i). The adoption of emergency rules authorized by
this subsection (i) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
    (k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of this
amendatory Act of the 94th General Assembly or any other budget
initiative for fiscal year 2006 may be adopted in accordance
with this Section by the agency charged with administering that
provision or initiative, except that the 24-month limitation on
the adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (k). The Department of Healthcare and Family
Services may also adopt rules under this subsection (k)
necessary to administer the Illinois Public Aid Code, the
Senior Citizens and Disabled Persons Property Tax Relief and
Pharmaceutical Assistance Act, the Senior Citizens and
Disabled Persons Prescription Drug Discount Program Act (now
the Illinois Prescription Drug Discount Program Act), and the
Children's Health Insurance Program Act. The adoption of
emergency rules authorized by this subsection (k) shall be
deemed to be necessary for the public interest, safety, and
welfare.
    (l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of this
amendatory Act of the 96th General Assembly or any other budget
initiative authorized by the 96th General Assembly for fiscal
year 2010 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative. The adoption of emergency rules authorized by this
subsection (n) shall be deemed to be necessary for the public
interest, safety, and welfare. The rulemaking authority
granted in this subsection (n) shall apply only to rules
promulgated during Fiscal Year 2010.
    (o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of this
amendatory Act of the 96th General Assembly or any other budget
initiative authorized by the 96th General Assembly for fiscal
year 2011 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative. The adoption of emergency rules authorized by this
subsection (o) is deemed to be necessary for the public
interest, safety, and welfare. The rulemaking authority
granted in this subsection (o) applies only to rules
promulgated on or after the effective date of this amendatory
Act of the 96th General Assembly through January 9, 2011.
(Source: P.A. 95-12, eff. 7-2-07; 95-331, eff. 8-21-07; 96-45,
eff. 7-15-09.)
 
    Section 5-10. The General Assembly Compensation Act is
amended by adding Section 1.6 as follows:
 
    (25 ILCS 115/1.6 new)
    Sec. 1.6. FY11 furlough days. During the first 6 months of
the fiscal year beginning July 1, 2010, every member of the
96th General Assembly is mandatorily required to forfeit 6 days
of compensation. The State Comptroller shall deduct the
equivalent of 1/261st of the annual salary of each member of
the 96th General Assembly from the compensation of that member
in each of the first 6 months of the fiscal year. During the
second 6 months of the fiscal year beginning July 1, 2010,
every member of the 97th General Assembly is mandatorily
required to forfeit 6 days of compensation. The State
Comptroller shall deduct the equivalent of 1/261st of the
annual salary of each member of the 97th General Assembly from
the compensation of that member in each of the second 6 months
of the fiscal year. For purposes of this Section, annual
compensation includes compensation paid to each member by the
State for one year of service pursuant to Section 1, except any
payments made for mileage and allowances for travel and meals.
The forfeiture required by this Section is not considered a
change in salary and shall not impact pension or other benefits
provided to members of the General Assembly.
 
    Section 5-15. The State Finance Act is amended by changing
Sections 6z-43, 14.1, and 25 and by adding Sections 5h and 14.2
as follows:
 
    (30 ILCS 105/5h new)
    Sec. 5h. Cash flow borrowing and general funds liquidity.
    (a) In order to meet cash flow deficits and to maintain
liquidity in the General Revenue Fund and the Common School
Fund, on and after July 1, 2010 and through January 9, 2011,
the State Treasurer and the State Comptroller shall make
transfers to the General Revenue Fund or the Common School
Fund, as directed by the Governor, out of special funds of the
State, to the extent allowed by federal law. No transfer may be
made from a fund under this Section that would have the effect
of reducing the available balance in the fund to an amount less
than the amount remaining unexpended and unreserved from the
total appropriation from that fund estimated to be expended for
that fiscal year. No such transfer may reduce the cumulative
balance of all of the special funds of the State to an amount
less than the total debt service payable during the 12 months
immediately following the date of the transfer on any bonded
indebtedness of the State and any certificates issued under the
Short Term Borrowing Act. Notwithstanding any other provision
of this Section, no such transfer may be made from any special
fund that is exclusively collected by or appropriated to any
other constitutional officer without the written approval of
that constitutional officer.
    (b) If moneys have been transferred to the General Revenue
Fund or the Common School Fund pursuant to subsection (a) of
this Section, this amendatory Act of the 96th General Assembly
shall constitute the irrevocable and continuing authority for
and direction to the State Treasurer and State Comptroller to
reimburse the funds of origin from the General Revenue Fund or
the Common School Fund, as appropriate, by transferring to the
funds of origin, at such times and in such amounts as directed
by the Governor when necessary to support appropriated
expenditures from the funds, an amount equal to that
transferred from them plus any interest that would have accrued
thereon had the transfer not occurred, except that any moneys
transferred pursuant to subsection (a) of this Section shall be
repaid to the fund of origin within 18 months after the date on
which they were borrowed.
    (c) On the first day of each quarterly period in each
fiscal year, the Governor's Office of Management and Budget
shall provide to the President and the Minority Leader of the
Senate, the Speaker and the Minority Leader of the House of
Representatives, and the Commission on Government Forecasting
and Accountability a report on all transfers made pursuant to
this Section in the prior quarterly period. The report must be
provided in both written and electronic format. The report must
include all of the following:
        (1) The date each transfer was made.
        (2) The amount of each transfer.
        (3) In the case of a transfer from the General Revenue
    Fund or the Common School Fund to a fund of origin pursuant
    to subsection (b) of this Section, the amount of interest
    being paid to the fund of origin.
        (4) The end of day balance of both the fund of origin
    and the General Revenue Fund or the Common School Fund,
    whichever the case may be, on the date the transfer was
    made.
 
    (30 ILCS 105/6z-43)
    Sec. 6z-43. Tobacco Settlement Recovery Fund.
    (a) There is created in the State Treasury a special fund
to be known as the Tobacco Settlement Recovery Fund, which
shall contain 3 accounts: (i) the General Account, (ii) the
Tobacco Settlement Bond Proceeds Account and (iii) the Tobacco
Settlement Residual Account. There shall be deposited into the
several accounts of the Tobacco Settlement Recovery Fund into
which shall be deposited all monies paid to the State pursuant
to (1) the Master Settlement Agreement entered in the case of
People of the State of Illinois v. Philip Morris, et al.
(Circuit Court of Cook County, No. 96-L13146) and (2) any
settlement with or judgment against any tobacco product
manufacturer other than one participating in the Master
Settlement Agreement in satisfaction of any released claim as
defined in the Master Settlement Agreement, as well as any
other monies as provided by law. Moneys All earnings on Fund
investments shall be deposited into the Tobacco Settlement Bond
Proceeds Account and the Tobacco Settlement Residual Account as
provided by the terms of the Railsplitter Tobacco Settlement
Authority Act, provided that an annual amount not less than
$2,500,000, subject to appropriation, shall be deposited into
the Tobacco Settlement Residual Account for use by the Attorney
General for enforcement of the Master Settlement Agreement. All
other moneys available to be deposited into the Tobacco
Settlement Recovery Fund shall be deposited into the General
Account. An investment made from moneys credited to a specific
account constitutes part of that account and such account shall
be credited with all income from the investment of such moneys.
Fund. Upon the creation of the Fund, the State Comptroller
shall order the State Treasurer to transfer into the Fund any
monies paid to the State as described in item (1) or (2) of
this Section before the creation of the Fund plus any interest
earned on the investment of those monies. The Treasurer may
invest the moneys in the several accounts the Fund in the same
manner, in the same types of investments, and subject to the
same limitations provided in the Illinois Pension Code for the
investment of pension funds other than those established under
Article 3 or 4 of the Code. Notwithstanding the foregoing, to
the extent necessary to preserve the tax-exempt status of any
bonds issued pursuant to the Railsplitter Tobacco Settlement
Authority Act, the interest on which is intended to be
excludable from the gross income of the owners for federal
income tax purposes, moneys on deposit in the Tobacco
Settlement Bond Proceeds Account and the Tobacco Settlement
Residual Account may be invested in obligations the interest
upon which is tax-exempt under the provisions of Section 103 of
the Internal Revenue Code of 1986, as now or hereafter amended,
or any successor code or provision.
    (b) Moneys on deposit in the Tobacco Settlement Bond
Proceeds Account and the Tobacco Settlement Residual Account
may be expended, subject to appropriation, for the purposes
authorized in Section 6(g) of the Railsplitter Tobacco
Settlement Authority Act.
    (c) (b) As soon as may be practical after June 30, 2001,
upon notification from and at the direction of the Governor,
the State Comptroller shall direct and the State Treasurer
shall transfer the unencumbered balance in the Tobacco
Settlement Recovery Fund as of June 30, 2001, as determined by
the Governor, into the Budget Stabilization Fund. The Treasurer
may invest the moneys in the Budget Stabilization Fund in the
same manner, in the same types of investments, and subject to
the same limitations provided in the Illinois Pension Code for
the investment of pension funds other than those established
under Article 3 or 4 of the Code.
    (c) In addition to any other deposits authorized by law,
after any delivery of any bonds as authorized by Section 7.5 of
the General Obligation Bond Act for deposits to the General
Revenue Fund and the Budget Stabilization Fund (referred to as
"tobacco securitization general obligation bonds"), the
Governor shall certify, on or before June 30, 2003 and June 30
of each year thereafter, to the State Comptroller and State
Treasurer the total amount of principal of, interest on, and
premium, if any, due on those bonds in the next fiscal year
beginning with amounts due in fiscal year 2004. As soon as
practical after the annual payment of tobacco settlement moneys
to the Tobacco Settlement Recovery Fund as described in item
(1) of subsection (a), the State Treasurer and State
Comptroller shall transfer from the Tobacco Settlement
Recovery Fund to the General Obligation Bond Retirement and
Interest Fund the amount certified by the Governor, plus any
cumulative deficiency in those transfers for prior years.
    (d) All federal financial participation moneys received
pursuant to expenditures from the Fund shall be deposited into
the General Account Fund.
(Source: P.A. 95-331, eff. 8-21-07.)
 
    (30 ILCS 105/14.1)   (from Ch. 127, par. 150.1)
    Sec. 14.1. Appropriations for State contributions to the
State Employees' Retirement System; payroll requirements.
    (a) Appropriations for State contributions to the State
Employees' Retirement System of Illinois shall be expended in
the manner provided in this Section. Except as otherwise
provided in subsections (a-1) and (a-2), at the time of each
payment of salary to an employee under the personal services
line item, payment shall be made to the State Employees'
Retirement System, from the amount appropriated for State
contributions to the State Employees' Retirement System, of an
amount calculated at the rate certified for the applicable
fiscal year by the Board of Trustees of the State Employees'
Retirement System under Section 14-135.08 of the Illinois
Pension Code. If a line item appropriation to an employer for
this purpose is exhausted or is unavailable due to any
limitation on appropriations that may apply, (including, but
not limited to, limitations on appropriations from the Road
Fund under Section 8.3 of the State Finance Act), the amounts
shall be paid under the continuing appropriation for this
purpose contained in the State Pension Funds Continuing
Appropriation Act.
    (a-1) Beginning on the effective date of this amendatory
Act of the 93rd General Assembly through the payment of the
final payroll from fiscal year 2004 appropriations,
appropriations for State contributions to the State Employees'
Retirement System of Illinois shall be expended in the manner
provided in this subsection (a-1). At the time of each payment
of salary to an employee under the personal services line item
from a fund other than the General Revenue Fund, payment shall
be made for deposit into the General Revenue Fund from the
amount appropriated for State contributions to the State
Employees' Retirement System of an amount calculated at the
rate certified for fiscal year 2004 by the Board of Trustees of
the State Employees' Retirement System under Section 14-135.08
of the Illinois Pension Code. This payment shall be made to the
extent that a line item appropriation to an employer for this
purpose is available or unexhausted. No payment from
appropriations for State contributions shall be made in
conjunction with payment of salary to an employee under the
personal services line item from the General Revenue Fund.
    (a-2) For fiscal year 2010 only, at the time of each
payment of salary to an employee under the personal services
line item from a fund other than the General Revenue Fund,
payment shall be made for deposit into the State Employees'
Retirement System of Illinois from the amount appropriated for
State contributions to the State Employees' Retirement System
of Illinois of an amount calculated at the rate certified for
fiscal year 2010 by the Board of Trustees of the State
Employees' Retirement System of Illinois under Section
14-135.08 of the Illinois Pension Code. This payment shall be
made to the extent that a line item appropriation to an
employer for this purpose is available or unexhausted. For
fiscal year 2010 only, no payment from appropriations for State
contributions shall be made in conjunction with payment of
salary to an employee under the personal services line item
from the General Revenue Fund.
    (a-3) For fiscal year 2011 only, at the time of each
payment of salary to an employee under the personal services
line item from a fund other than the General Revenue Fund,
payment shall be made for deposit into the State Employees'
Retirement System of Illinois from the amount appropriated for
State contributions to the State Employees' Retirement System
of Illinois of an amount calculated at the rate certified for
fiscal year 2011 by the Board of Trustees of the State
Employees' Retirement System of Illinois under Section
14-135.08 of the Illinois Pension Code. This payment shall be
made to the extent that a line item appropriation to an
employer for this purpose is available or unexhausted. For
fiscal year 2011 only, no payment from appropriations for State
contributions shall be made in conjunction with payment of
salary to an employee under the personal services line item
from the General Revenue Fund.
    (b) Except during the period beginning on the effective
date of this amendatory Act of the 93rd General Assembly and
ending at the time of the payment of the final payroll from
fiscal year 2004 appropriations, the State Comptroller shall
not approve for payment any payroll voucher that (1) includes
payments of salary to eligible employees in the State
Employees' Retirement System of Illinois and (2) does not
include the corresponding payment of State contributions to
that retirement system at the full rate certified under Section
14-135.08 for that fiscal year for eligible employees, unless
the balance in the fund on which the payroll voucher is drawn
is insufficient to pay the total payroll voucher, or
unavailable due to any limitation on appropriations that may
apply, including, but not limited to, limitations on
appropriations from the Road Fund under Section 8.3 of the
State Finance Act. If the State Comptroller approves a payroll
voucher under this Section for which the fund balance is
insufficient to pay the full amount of the required State
contribution to the State Employees' Retirement System, the
Comptroller shall promptly so notify the Retirement System.
    (b-1) For fiscal year 2010 only, the State Comptroller
shall not approve for payment any non-General Revenue Fund
payroll voucher that (1) includes payments of salary to
eligible employees in the State Employees' Retirement System of
Illinois and (2) does not include the corresponding payment of
State contributions to that retirement system at the full rate
certified under Section 14-135.08 for that fiscal year for
eligible employees, unless the balance in the fund on which the
payroll voucher is drawn is insufficient to pay the total
payroll voucher, or unavailable due to any limitation on
appropriations that may apply, including, but not limited to,
limitations on appropriations from the Road Fund under Section
8.3 of the State Finance Act. If the State Comptroller approves
a payroll voucher under this Section for which the fund balance
is insufficient to pay the full amount of the required State
contribution to the State Employees' Retirement System of
Illinois, the Comptroller shall promptly so notify the
retirement system.
    (c) Notwithstanding any other provisions of law, beginning
July 1, 2007, required State and employee contributions to the
State Employees' Retirement System of Illinois relating to
affected legislative staff employees shall be paid out of
moneys appropriated for that purpose to the Commission on
Government Forecasting and Accountability, rather than out of
the lump-sum appropriations otherwise made for the payroll and
other costs of those employees.
    These payments must be made pursuant to payroll vouchers
submitted by the employing entity as part of the regular
payroll voucher process.
    For the purpose of this subsection, "affected legislative
staff employees" means legislative staff employees paid out of
lump-sum appropriations made to the General Assembly, an
Officer of the General Assembly, or the Senate Operations
Commission, but does not include district-office staff or
employees of legislative support services agencies.
(Source: P.A. 95-707, eff. 1-11-08; 96-45, eff. 7-15-09.)
 
    (30 ILCS 105/14.2 new)
    Sec. 14.2. Fiscal year 2011 State officer compensation
forfeiture.
    (a) During the fiscal year beginning on July 1, 2010, each
State officer listed in subsection (b) is required to forfeit
one day of compensation each month. The State Comptroller shall
deduct the equivalent of 1/261st of the annual compensation of
each of those State officers that is paid from the General
Revenue Fund from the compensation of that State officer in
each month of the fiscal year. For purposes of this Section,
annual compensation includes compensation paid to each of those
State officers by the State for one year of service, except any
payments made for mileage and allowances for travel and meals.
The forfeiture required by this Section is not considered a
change in salary and shall not impact pension or other benefits
provided to those State officers.
    (b) "State officers" for the purposes of subsection (a) are
the following:
        Governor
        Lieutenant Governor
        Secretary of State
        Attorney General
        Comptroller
        State Treasurer
        Department on Aging: Director
        Department of Agriculture: Director and Assistant
    Director
        Department of Central Management Services: Director
    and Assistant Directors
        Department of Children and Family Services: Director
        Department of Corrections: Director and Assistant
    Director
        Department of Commerce and Economic Opportunity:
    Director and Assistant Director
        Environmental Protection Agency: Director
        Department of Financial and Professional Regulation:
    Secretary and Directors
        Department of Human Services: Secretary and Assistant
    Secretaries
        Department of Juvenile Justice: Director
        Department of Labor: Director, Assistant Director,
    Chief Factory Inspector, and Superintendent of Safety
    Inspection and Education
        Department of State Police: Director and Assistant
    Director
        Department of Military Affairs: Adjutant General and
    Chief Assistants to the Adjutant General
        Department of Natural Resources: Director, Assistant
    Director, Mine Officers, and Miners' Examining Officers
        Illinois Labor Relations Board: Chairman, State Labor
    Relations Board members, and Local Labor Relations Board
    members
        Department of Healthcare and Family Services: Director
    and Assistant Director
        Department of Public Health: Director and Assistant
    Director
        Department of Revenue: Director and Assistant Director
        Property Tax Appeal Board: Chairman and members
        Department of Veterans' Affairs: Director and
    Assistant Director
        Civil Service Commission: Chairman and members
        Commerce Commission: Chairman and members
        State Board of Elections: Chairman, Vice-Chairman, and
    members
        Illinois Emergency Management Agency: Director and
    Assistant Director
        Department of Human Rights: Director
        Human Rights Commission: Chairman and members
        Illinois Workers' Compensation Commission: Chairman
    and members
        Liquor Control Commission: Chairman, members, and
    Secretary
        Executive Ethics Commission: members
        Illinois Power Agency: Director
        Pollution Control Board: Chairman and members
        Prisoner Review Board: Chairman and members
        Secretary of State Merit Commission: Chairman and
    members
        Educational Labor Relations Board: Chairman and
    members
        Department of Transportation: Secretary and Assistant
    Secretary
        Office of Small Business Utility Advocate: small
    business utility advocate
        Executive Inspector General for the Office of the
    Governor
        Executive Inspector General for the Office of the
    Attorney General
        Executive Inspector General for the Office of the
    Secretary of State
        Executive Inspector General for the Office of the
    Comptroller
        Executive Inspector General for the Office of the
    Treasurer
        Office of Auditor General: Auditor General and Deputy
    Auditors General.
 
    (30 ILCS 105/25)  (from Ch. 127, par. 161)
    Sec. 25. Fiscal year limitations.
    (a) All appropriations shall be available for expenditure
for the fiscal year or for a lesser period if the Act making
that appropriation so specifies. A deficiency or emergency
appropriation shall be available for expenditure only through
June 30 of the year when the Act making that appropriation is
enacted unless that Act otherwise provides.
    (b) Outstanding liabilities as of June 30, payable from
appropriations which have otherwise expired, may be paid out of
the expiring appropriations during the 2-month period ending at
the close of business on August 31. Any service involving
professional or artistic skills or any personal services by an
employee whose compensation is subject to income tax
withholding must be performed as of June 30 of the fiscal year
in order to be considered an "outstanding liability as of June
30" that is thereby eligible for payment out of the expiring
appropriation.
    However, payment of tuition reimbursement claims under
Section 14-7.03 or 18-3 of the School Code may be made by the
State Board of Education from its appropriations for those
respective purposes for any fiscal year, even though the claims
reimbursed by the payment may be claims attributable to a prior
fiscal year, and payments may be made at the direction of the
State Superintendent of Education from the fund from which the
appropriation is made without regard to any fiscal year
limitations.
    All outstanding liabilities as of June 30, 2010, payable
from appropriations that would otherwise expire at the
conclusion of the lapse period for fiscal year 2010, and
interest penalties payable on those liabilities under the State
Prompt Payment Act, may be paid out of the expiring
appropriations until December 31, 2010, without regard to the
fiscal year in which the payment is made, as long as vouchers
for the liabilities are received by the Comptroller no later
than August 31, 2010.
    Medical payments may be made by the Department of Veterans'
Affairs from its appropriations for those purposes for any
fiscal year, without regard to the fact that the medical
services being compensated for by such payment may have been
rendered in a prior fiscal year.
    Medical payments may be made by the Department of
Healthcare and Family Services and medical payments and child
care payments may be made by the Department of Human Services
(as successor to the Department of Public Aid) from
appropriations for those purposes for any fiscal year, without
regard to the fact that the medical or child care services
being compensated for by such payment may have been rendered in
a prior fiscal year; and payments may be made at the direction
of the Department of Central Management Services from the
Health Insurance Reserve Fund and the Local Government Health
Insurance Reserve Fund without regard to any fiscal year
limitations.
    Medical payments may be made by the Department of Human
Services from its appropriations relating to substance abuse
treatment services for any fiscal year, without regard to the
fact that the medical services being compensated for by such
payment may have been rendered in a prior fiscal year, provided
the payments are made on a fee-for-service basis consistent
with requirements established for Medicaid reimbursement by
the Department of Healthcare and Family Services.
    Additionally, payments may be made by the Department of
Human Services from its appropriations, or any other State
agency from its appropriations with the approval of the
Department of Human Services, from the Immigration Reform and
Control Fund for purposes authorized pursuant to the
Immigration Reform and Control Act of 1986, without regard to
any fiscal year limitations.
    Further, with respect to costs incurred in fiscal years
2002 and 2003 only, payments may be made by the State Treasurer
from its appropriations from the Capital Litigation Trust Fund
without regard to any fiscal year limitations.
    Lease payments may be made by the Department of Central
Management Services under the sale and leaseback provisions of
Section 7.4 of the State Property Control Act with respect to
the James R. Thompson Center and the Elgin Mental Health Center
and surrounding land from appropriations for that purpose
without regard to any fiscal year limitations.
    Lease payments may be made under the sale and leaseback
provisions of Section 7.5 of the State Property Control Act
with respect to the Illinois State Toll Highway Authority
headquarters building and surrounding land without regard to
any fiscal year limitations.
    (c) Further, payments may be made by the Department of
Public Health and the Department of Human Services (acting as
successor to the Department of Public Health under the
Department of Human Services Act) from their respective
appropriations for grants for medical care to or on behalf of
persons suffering from chronic renal disease, persons
suffering from hemophilia, rape victims, and premature and
high-mortality risk infants and their mothers and for grants
for supplemental food supplies provided under the United States
Department of Agriculture Women, Infants and Children
Nutrition Program, for any fiscal year without regard to the
fact that the services being compensated for by such payment
may have been rendered in a prior fiscal year.
    (d) The Department of Public Health and the Department of
Human Services (acting as successor to the Department of Public
Health under the Department of Human Services Act) shall each
annually submit to the State Comptroller, Senate President,
Senate Minority Leader, Speaker of the House, House Minority
Leader, and the respective Chairmen and Minority Spokesmen of
the Appropriations Committees of the Senate and the House, on
or before December 31, a report of fiscal year funds used to
pay for services provided in any prior fiscal year. This report
shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
    (e) The Department of Healthcare and Family Services, the
Department of Human Services (acting as successor to the
Department of Public Aid), and the Department of Human Services
making fee-for-service payments relating to substance abuse
treatment services provided during a previous fiscal year shall
each annually submit to the State Comptroller, Senate
President, Senate Minority Leader, Speaker of the House, House
Minority Leader, the respective Chairmen and Minority
Spokesmen of the Appropriations Committees of the Senate and
the House, on or before November 30, a report that shall
document by program or service category those expenditures from
the most recently completed fiscal year used to pay for (i)
services provided in prior fiscal years and (ii) services for
which claims were received in prior fiscal years.
    (f) The Department of Human Services (as successor to the
Department of Public Aid) shall annually submit to the State
Comptroller, Senate President, Senate Minority Leader, Speaker
of the House, House Minority Leader, and the respective
Chairmen and Minority Spokesmen of the Appropriations
Committees of the Senate and the House, on or before December
31, a report of fiscal year funds used to pay for services
(other than medical care) provided in any prior fiscal year.
This report shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
    (g) In addition, each annual report required to be
submitted by the Department of Healthcare and Family Services
under subsection (e) shall include the following information
with respect to the State's Medicaid program:
        (1) Explanations of the exact causes of the variance
    between the previous year's estimated and actual
    liabilities.
        (2) Factors affecting the Department of Healthcare and
    Family Services' liabilities, including but not limited to
    numbers of aid recipients, levels of medical service
    utilization by aid recipients, and inflation in the cost of
    medical services.
        (3) The results of the Department's efforts to combat
    fraud and abuse.
    (h) As provided in Section 4 of the General Assembly
Compensation Act, any utility bill for service provided to a
General Assembly member's district office for a period
including portions of 2 consecutive fiscal years may be paid
from funds appropriated for such expenditure in either fiscal
year.
    (i) An agency which administers a fund classified by the
Comptroller as an internal service fund may issue rules for:
        (1) billing user agencies in advance for payments or
    authorized inter-fund transfers based on estimated charges
    for goods or services;
        (2) issuing credits, refunding through inter-fund
    transfers, or reducing future inter-fund transfers during
    the subsequent fiscal year for all user agency payments or
    authorized inter-fund transfers received during the prior
    fiscal year which were in excess of the final amounts owed
    by the user agency for that period; and
        (3) issuing catch-up billings to user agencies during
    the subsequent fiscal year for amounts remaining due when
    payments or authorized inter-fund transfers received from
    the user agency during the prior fiscal year were less than
    the total amount owed for that period.
User agencies are authorized to reimburse internal service
funds for catch-up billings by vouchers drawn against their
respective appropriations for the fiscal year in which the
catch-up billing was issued or by increasing an authorized
inter-fund transfer during the current fiscal year. For the
purposes of this Act, "inter-fund transfers" means transfers
without the use of the voucher-warrant process, as authorized
by Section 9.01 of the State Comptroller Act.
(Source: P.A. 95-331, eff. 8-21-07.)
 
    Section 5-20. The State Pension Funds Continuing
Appropriation Act is amended by changing Section 1.2 as
follows:
 
    (40 ILCS 15/1.2)
    Sec. 1.2. Appropriations for the State Employees'
Retirement System.
    (a) From each fund from which an amount is appropriated for
personal services to a department or other employer under
Article 14 of the Illinois Pension Code, there is hereby
appropriated to that department or other employer, on a
continuing annual basis for each State fiscal year, an
additional amount equal to the amount, if any, by which (1) an
amount equal to the percentage of the personal services line
item for that department or employer from that fund for that
fiscal year that the Board of Trustees of the State Employees'
Retirement System of Illinois has certified under Section
14-135.08 of the Illinois Pension Code to be necessary to meet
the State's obligation under Section 14-131 of the Illinois
Pension Code for that fiscal year, exceeds (2) the amounts
otherwise appropriated to that department or employer from that
fund for State contributions to the State Employees' Retirement
System for that fiscal year. From the effective date of this
amendatory Act of the 93rd General Assembly through the final
payment from a department or employer's personal services line
item for fiscal year 2004, payments to the State Employees'
Retirement System that otherwise would have been made under
this subsection (a) shall be governed by the provisions in
subsection (a-1).
    (a-1) If a Fiscal Year 2004 Shortfall is certified under
subsection (f) of Section 14-131 of the Illinois Pension Code,
there is hereby appropriated to the State Employees' Retirement
System of Illinois on a continuing basis from the General
Revenue Fund an additional aggregate amount equal to the Fiscal
Year 2004 Shortfall.
    (a-2) If a Fiscal Year 2010 Shortfall is certified under
subsection (g) of Section 14-131 of the Illinois Pension Code,
there is hereby appropriated to the State Employees' Retirement
System of Illinois on a continuing basis from the General
Revenue Fund an additional aggregate amount equal to the Fiscal
Year 2010 Shortfall.
    (b) The continuing appropriations provided for by this
Section shall first be available in State fiscal year 1996.
    (c) Beginning in Fiscal Year 2005, any continuing
appropriation under this Section arising out of an
appropriation for personal services from the Road Fund to the
Department of State Police or the Secretary of State shall be
payable from the General Revenue Fund rather than the Road
Fund.
    (d) For State fiscal year 2010 only, a continuing
appropriation is provided to the State Employees' Retirement
System equal to the amount certified by the System on or before
December 31, 2008, less the gross proceeds of the bonds sold in
fiscal year 2010 under the authorization contained in
subsection (a) of Section 7.2 of the General Obligation Bond
Act.
    (e) For State fiscal year 2011 only, the continuing
appropriation under this Section provided to the State
Employees' Retirement System is limited to an amount equal to
the amount certified by the System on or before December 31,
2009, less any amounts received pursuant to subsection (a-3) of
Section 14.1 of the State Finance Act.
(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; revised
11-3-09.)
 
ARTICLE 25. ADDITIONAL AMENDATORY PROVISIONS

 
    Section 25-5. The State Budget Law of the Civil
Administrative Code of Illinois is amended by changing Sections
50-5 and 50-10 and by adding Sections 50-7 and 50-25 as
follows:
 
    (15 ILCS 20/50-5)
    Sec. 50-5. Governor to submit State budget.
    (a) The Governor shall, as soon as possible and not later
than the second Wednesday in March in 2010 (March 10, 2010) and
the third Wednesday in February of each year beginning in 2011,
except as otherwise provided in this Section, submit a State
budget, embracing therein the amounts recommended by the
Governor to be appropriated to the respective departments,
offices, and institutions, and for all other public purposes,
the estimated revenues from taxation, the estimated revenues
from sources other than taxation, and an estimate of the amount
required to be raised by taxation. The amounts recommended by
the Governor for appropriation to the respective departments,
offices and institutions shall be formulated according to the
various functions and activities for which the respective
department, office or institution of the State government
(including the elective officers in the executive department
and including the University of Illinois and the judicial
department) is responsible. The amounts relating to particular
functions and activities shall be further formulated in
accordance with the object classification specified in Section
13 of the State Finance Act. In addition, the amounts
recommended by the Governor for appropriation shall take into
account each State agency's effectiveness in achieving its
prioritized goals for the previous fiscal year, as set forth in
Section 50-25 of this Law, giving priority to agencies and
programs that have demonstrated a focus on the prevention of
waste and the maximum yield from resources.
    Beginning in fiscal year 2011, the Governor shall
distribute written quarterly budget statements to the General
Assembly and the State Comptroller. The statements shall be
submitted on Wednesday of the last week of the last month of
each quarter of the fiscal year and, as is currently the
practice on the effective date of this amendatory Act of the
96th General Assembly, shall be posted on the Comptroller's
website on the same day. The statements shall be prepared and
presented in an executive summary format that includes, for the
fiscal year to date, individual itemizations for each revenue
source as well as individual itemizations of expenditures and
obligations, by the classified line items set forth in Section
13 of the State Finance Act and for other purposes, with an
appropriate level of detail. The statement shall include a
calculation of the actual total budget surplus or deficit. The
Governor shall also present periodic budget addresses
throughout the fiscal year at the invitation of the General
Assembly.
    The Governor shall not propose expenditures and the General
Assembly shall not enact appropriations that exceed the
resources estimated to be available, as provided in this
Section. Appropriations may be adjusted during the fiscal year
by means of one or more supplemental appropriation bills if any
State agency either fails to meet or exceeds the goals set
forth in Section 50-25 of this Law.
    For the purposes of Article VIII, Section 2 of the 1970
Illinois Constitution, the State budget for the following funds
shall be prepared on the basis of revenue and expenditure
measurement concepts that are in concert with generally
accepted accounting principles for governments:
        (1) General Revenue Fund.
        (2) Common School Fund.
        (3) Educational Assistance Fund.
        (4) Road Fund.
        (5) Motor Fuel Tax Fund.
        (6) Agricultural Premium Fund.
    These funds shall be known as the "budgeted funds". The
revenue estimates used in the State budget for the budgeted
funds shall include the estimated beginning fund balance, plus
revenues estimated to be received during the budgeted year,
plus the estimated receipts due the State as of June 30 of the
budgeted year that are expected to be collected during the
lapse period following the budgeted year, minus the receipts
collected during the first 2 months of the budgeted year that
became due to the State in the year before the budgeted year.
Revenues shall also include estimated federal reimbursements
associated with the recognition of Section 25 of the State
Finance Act liabilities. For any budgeted fund for which
current year revenues are anticipated to exceed expenditures,
the surplus shall be considered to be a resource available for
expenditure in the budgeted fiscal year.
    Expenditure estimates for the budgeted funds included in
the State budget shall include the costs to be incurred by the
State for the budgeted year, to be paid in the next fiscal
year, excluding costs paid in the budgeted year which were
carried over from the prior year, where the payment is
authorized by Section 25 of the State Finance Act. For any
budgeted fund for which expenditures are expected to exceed
revenues in the current fiscal year, the deficit shall be
considered as a use of funds in the budgeted fiscal year.
    Revenues and expenditures shall also include transfers
between funds that are based on revenues received or costs
incurred during the budget year.
    Appropriations for expenditures shall also include all
anticipated statutory continuing appropriation obligations
that are expected to be incurred during the budgeted fiscal
year.
    By March 15 of each year, the Commission on Government
Forecasting and Accountability shall prepare revenue and fund
transfer estimates in accordance with the requirements of this
Section and report those estimates to the General Assembly and
the Governor.
    For all funds other than the budgeted funds, the proposed
expenditures shall not exceed funds estimated to be available
for the fiscal year as shown in the budget. Appropriation for a
fiscal year shall not exceed funds estimated by the General
Assembly to be available during that year.
    (b) This subsection applies only to the process for the
proposed fiscal year 2011 budget.
    By February 24, 2010, the Governor must file a written
report with the Secretary of the Senate and the Clerk of the
House of Representatives containing the following:
        (1) for fiscal year 2010, the revenues for all budgeted
    funds, both actual to date and estimated for the full
    fiscal year;
        (2) for fiscal year 2010, the expenditures for all
    budgeted funds, both actual to date and estimated for the
    full fiscal year;
        (3) for fiscal year 2011, the estimated revenues for
    all budgeted funds, including without limitation the
    affordable General Revenue Fund appropriations, for the
    full fiscal year; and
        (4) for fiscal year 2011, an estimate of the
    anticipated liabilities for all budgeted funds, including
    without limitation the affordable General Revenue Fund
    appropriations, debt service on bonds issued, and the
    State's contributions to the pension systems, for the full
    fiscal year.
    Between February 24, 2010 and March 10, 2010, the members
of the General Assembly and members of the public may make
written budget recommendations to the Governor, and the
Governor shall promptly make those recommendations available
to the public through the Governor's Internet website.
(Source: P.A. 96-1, eff. 2-17-09; 96-320, eff. 1-1-10; 96-881,
eff. 2-11-10.)
 
    (15 ILCS 20/50-7 new)
    Sec. 50-7. Online budget survey. Beginning in February of
2011, and during February of each year thereafter, the
Governor's Office of Management and Budget shall post on its
website a survey that will allow residents of the State to
prioritize proposed spending measures for the next fiscal year.
The Office shall post the results of each survey on its
website.
 
    (15 ILCS 20/50-10)  (was 15 ILCS 20/38.1)
    Sec. 50-10. Budget contents. The budget shall be submitted
by the Governor with line item and program data. The budget
shall also contain performance data presenting an estimate for
the current fiscal year, projections for the budget year, and
information for the 3 prior fiscal years comparing department
objectives with actual accomplishments, formulated according
to the various functions and activities, and, wherever the
nature of the work admits, according to the work units, for
which the respective departments, offices, and institutions of
the State government (including the elective officers in the
executive department and including the University of Illinois
and the judicial department) are responsible.
    For the fiscal year beginning July 1, 1992 and for each
fiscal year thereafter, the budget shall include the
performance measures of each department's accountability
report.
    For the fiscal year beginning July 1, 1997 and for each
fiscal year thereafter, the budget shall include one or more
line items appropriating moneys to the Department of Human
Services to fund participation in the Home-Based Support
Services Program for Mentally Disabled Adults under the
Developmental Disability and Mental Disability Services Act by
persons described in Section 2-17 of that Act.
    The budget shall contain a capital development section in
which the Governor will present (1) information on the capital
projects and capital programs for which appropriations are
requested, (2) the capital spending plans, which shall document
the first and subsequent years cash requirements by fund for
the proposed bonded program, and (3) a statement that shall
identify by year the principal and interest costs until
retirement of the State's general obligation debt. In addition,
the principal and interest costs of the budget year program
shall be presented separately, to indicate the marginal cost of
principal and interest payments necessary to retire the
additional bonds needed to finance the budget year's capital
program. In 2004 only, the capital development section of the
State budget shall be submitted by the Governor not later than
the fourth Tuesday of March (March 23, 2004).
    For the budget year, the current year, and 3 prior fiscal
years, the Governor shall also include in the budget estimates
of or actual values for the assets and liabilities for General
Assembly Retirement System, State Employees' Retirement System
of Illinois, State Universities Retirement System, Teachers'
Retirement System of the State of Illinois, and Judges
Retirement System of Illinois.
    The budget submitted by the Governor shall contain, in
addition, in a separate book, a tabulation of all position and
employment titles in each such department, office, and
institution, the number of each, and the salaries for each,
formulated according to divisions, bureaus, sections, offices,
departments, boards, and similar subdivisions, which shall
correspond as nearly as practicable to the functions and
activities for which the department, office, or institution is
responsible.
    Together with the budget, the Governor shall transmit the
estimates of receipts and expenditures, as received by the
Director of the Governor's Office of Management and Budget, of
the elective officers in the executive and judicial departments
and of the University of Illinois.
    An applicable appropriations committee of each chamber of
the General Assembly, for fiscal year 2012 and thereafter, must
review individual line item appropriations and the total budget
for each State agency, as defined in the Illinois State
Auditing Act.
(Source: P.A. 93-662, eff. 2-11-04.)
 
    (15 ILCS 20/50-25 new)
    Sec. 50-25. Statewide prioritized goals. For fiscal year
2012 and each fiscal year thereafter, prior to the submission
of the State budget, the Governor, in consultation with the
appropriation committees of the General Assembly, shall: (i)
prioritize outcomes that are most important for each State
agency of the executive branch under the jurisdiction of the
Governor to achieve for the next fiscal year and (ii) set goals
to accomplish those outcomes according to the priority of the
outcome. In addition, each other constitutional officer of the
executive branch, in consultation with the appropriation
committees of the General Assembly, shall: (i) prioritize
outcomes that are most important for his or her office to
achieve for the next fiscal year and (ii) set goals to
accomplish those outcomes according to the priority of the
outcome. The Governor and each constitutional officer shall
separately conduct performance analyses to determine which
programs, strategies, and activities will best achieve those
desired outcomes. The Governor shall recommend that
appropriations be made to State agencies and officers for the
next fiscal year based on the agreed upon goals and priorities.
Each agency and officer may develop its own strategies for
meeting those goals and shall review and analyze those
strategies on a regular basis. The Governor shall also
implement procedures to measure annual progress toward the
State's highest priority outcomes and shall develop a statewide
reporting system that compares the actual results with budgeted
results. Those performance measures and results shall be posted
on the State Comptroller's website, and compiled for
distribution in the Comptroller's Public Accountability
Report, as is currently the practice on the effective date of
this amendatory Act of the 96th General Assembly.
 
    Section 25-10. The Governor's Office of Management and
Budget Act is amended by changing Section 2.1 as follows:
 
    (20 ILCS 3005/2.1)  (from Ch. 127, par. 412.1)
    Sec. 2.1.
    To assist the Governor in submitting a recommended budget,
including estimated receipts and revenue, to the General
Assembly, and to consult with the Commission on Government
Forecasting and Accountability, at the Commission's request,
in compiling a report on the estimated income of the State, as
required under Section 4 of the Commission on Government
Forecasting and Accountability Act.
(Source: P.A. 76-2411.)
 
    Section 25-15. The Commission on Government Forecasting
and Accountability Act is amended by changing Sections 3 and 4
as follows:
 
    (25 ILCS 155/3)  (from Ch. 63, par. 343)
    Sec. 3. The Commission shall:
    (1) Study from time to time and report to the General
Assembly on economic development and trends in the State.
    (2) Make such special economic and fiscal studies as it
deems appropriate or desirable or as the General Assembly may
request.
    (3) Based on its studies, recommend such State fiscal and
economic policies as it deems appropriate or desirable to
improve the functioning of State government and the economy of
the various regions within the State.
    (4) Prepare annually a State economic report.
    (5) Provide information for all appropriate legislative
organizations and personnel on economic trends in relation to
long range planning and budgeting.
    (6) Study and make such recommendations as it deems
appropriate to the General Assembly on local and regional
economic and fiscal policy and on federal fiscal policy as it
may affect Illinois.
    (7) Review capital expenditures, appropriations and
authorizations for both the State's general obligation and
revenue bonding authorities. At the direction of the
Commission, specific reviews may include economic feasibility
reviews of existing or proposed revenue bond projects to
determine the accuracy of the original estimate of useful life
of the projects, maintenance requirements and ability to meet
debt service requirements through their operating expenses.
    (8) Receive and review all executive agency and revenue
bonding authority annual and 3 year plans. The Commission shall
prepare a consolidated review of these plans, an updated
assessment of current State agency capital plans, a report on
the outstanding and unissued bond authorizations, an
evaluation of the State's ability to market further bond issues
and shall submit them as the "Legislative Capital Plan
Analysis" to the House and Senate Appropriations Committees at
least once a year. The Commission shall annually submit to the
General Assembly on the first Wednesday of April a report on
the State's long-term capital needs, with particular emphasis
upon and detail of the 5-year period in the immediate future.
    (9) Study and make recommendations it deems appropriate to
the General Assembly on State bond financing, bondability
guidelines, and debt management. At the direction of the
Commission, specific studies and reviews may take into
consideration short and long-run implications of State bonding
and debt management policy.
    (10) Comply with the provisions of the "State Debt Impact
Note Act" as now or hereafter amended.
    (11) Comply with the provisions of the Pension Impact Note
Act, as now or hereafter amended.
    (12) By August 1st of each year, the Commission must
prepare and cause to be published a summary report of State
appropriations for the State fiscal year beginning the previous
July 1st. The summary report must discuss major categories of
appropriations, the issues the General Assembly faced in
allocating appropriations, comparisons with appropriations for
previous State fiscal years, and other matters helpful in
providing the citizens of Illinois with an overall
understanding of appropriations for that fiscal year. The
summary report must be written in plain language and designed
for readability. Publication must be in newspapers of general
circulation in the various areas of the State to ensure
distribution statewide. The summary report must also be
published on the General Assembly's web site.
    (13) Comply with the provisions of the State Facilities
Closure Act.
    (14) For fiscal year 2012 and thereafter, develop a 3-year
budget forecast for the State, including opportunities and
threats concerning anticipated revenues and expenditures, with
an appropriate level of detail.
    The requirement for reporting to the General Assembly shall
be satisfied by filing copies of the report with the Speaker,
the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research Unit, as
required by Section 3.1 of the General Assembly Organization
Act, and filing such additional copies with the State
Government Report Distribution Center for the General Assembly
as is required under paragraph (t) of Section 7 of the State
Library Act.
(Source: P.A. 92-67, eff. 7-12-01; 93-632, eff. 2-1-04; 93-839,
eff. 7-30-04.)
 
    (25 ILCS 155/4)  (from Ch. 63, par. 344)
    Sec. 4. (a) The Commission shall publish, at the convening
of each regular session of the General Assembly, a report on
the estimated income of the State from all applicable revenue
sources for the next ensuing fiscal year and of any other funds
estimated to be available for such fiscal year. The Commission,
in its discretion, may consult with the Governor's Office of
Management and Budget in preparing the report. On the third
Wednesday in March after the session convenes, the Commission
shall issue a revised and updated set of revenue figures
reflecting the latest available information. The House and
Senate by joint resolution shall adopt or modify such estimates
as may be appropriate. The joint resolution shall constitute
the General Assembly's estimate, under paragraph (b) of Section
2 of Article VIII of the Constitution, of the funds estimated
to be available during the next fiscal year.
    (b) On the third Wednesday in March, the Commission shall
issue estimated:
        (1) pension funding requirements under P.A. 86-273;
    and
        (2) liabilities of the State employee group health
    insurance program.
    These estimated costs shall be for the fiscal year
beginning the following July 1.
    (c) The requirement for reporting to the General Assembly
shall be satisfied by filing copies of the report with the
Speaker, the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research unit, as
required by Section 3.1 of the General Assembly Organization
Act, and filing such additional copies with the State
Government Report Distribution Center for the General Assembly
as is required under paragraph (t) of Section 7 of the State
Library Act.
(Source: P.A. 93-632, eff. 2-1-04.)
 
ARTICLE 30. GENERAL ASSEMBLY PER DIEM

 
    Section 5. The General Assembly Compensation Act is amended
by changing Section 1 as follows:
 
    (25 ILCS 115/1)  (from Ch. 63, par. 14)
    Sec. 1. Each member of the General Assembly shall receive
an annual salary of $28,000 or as set by the Compensation
Review Board, whichever is greater. The following named
officers, committee chairmen and committee minority spokesmen
shall receive additional amounts per year for their services as
such officers, committee chairmen and committee minority
spokesmen respectively, as set by the Compensation Review Board
or, as follows, whichever is greater: Beginning the second
Wednesday in January 1989, the Speaker and the minority leader
of the House of Representatives and the President and the
minority leader of the Senate, $16,000 each; the majority
leader in the House of Representatives $13,500; 6 assistant
majority leaders and 5 assistant minority leaders in the
Senate, $12,000 each; 6 assistant majority leaders and 6
assistant minority leaders in the House of Representatives,
$10,500 each; 2 Deputy Majority leaders in the House of
Representatives $11,500 each; and 2 Deputy Minority leaders in
the House of Representatives, $11,500 each; the majority caucus
chairman and minority caucus chairman in the Senate, $12,000
each; and beginning the second Wednesday in January, 1989, the
majority conference chairman and the minority conference
chairman in the House of Representatives, $10,500 each;
beginning the second Wednesday in January, 1989, the chairman
and minority spokesman of each standing committee of the
Senate, except the Rules Committee, the Committee on
Committees, and the Committee on Assignment of Bills, $6,000
each; and beginning the second Wednesday in January, 1989, the
chairman and minority spokesman of each standing and select
committee of the House of Representatives, $6,000 each. A
member who serves in more than one position as an officer,
committee chairman, or committee minority spokesman shall
receive only one additional amount based on the position paying
the highest additional amount. The compensation provided for in
this Section to be paid per year to members of the General
Assembly, including the additional sums payable per year to
officers of the General Assembly shall be paid in 12 equal
monthly installments. The first such installment is payable on
January 31, 1977. All subsequent equal monthly installments are
payable on the last working day of the month. A member who has
held office any part of a month is entitled to compensation for
an entire month.
    Mileage shall be paid at the rate of 20 cents per mile
before January 9, 1985, and at the mileage allowance rate in
effect under regulations promulgated pursuant to 5 U.S.C.
5707(b)(2) beginning January 9, 1985, for the number of actual
highway miles necessarily and conveniently traveled by the most
feasible route to be present upon convening of the sessions of
the General Assembly by such member in each and every trip
during each session in going to and returning from the seat of
government, to be computed by the Comptroller. A member
traveling by public transportation for such purposes, however,
shall be paid his actual cost of that transportation instead of
on the mileage rate if his cost of public transportation
exceeds the amount to which he would be entitled on a mileage
basis. No member may be paid, whether on a mileage basis or for
actual costs of public transportation, for more than one such
trip for each week the General Assembly is actually in session.
Each member shall also receive an allowance of $36 per day for
lodging and meals while in attendance at sessions of the
General Assembly before January 9, 1985; beginning January 9,
1985, such food and lodging allowance shall be equal to the
amount per day permitted to be deducted for such expenses under
the Internal Revenue Code; however, beginning May 31, 1995, no
allowance for food and lodging while in attendance at sessions
is authorized for periods of time after the last day in May of
each calendar year, except (i) if the General Assembly is
convened in special session by either the Governor or the
presiding officers of both houses, as provided by subsection
(b) of Section 5 of Article IV of the Illinois Constitution or
(ii) if the General Assembly is convened to consider bills
vetoed, item vetoed, reduced, or returned with specific
recommendations for change by the Governor as provided in
Section 9 of Article IV of the Illinois Constitution.
Notwithstanding any other provision, for fiscal year 2011 only
(i) the allowance for lodging and meals is $111 per day and
(ii) mileage for automobile travel shall be reimbursed at a
rate of $0.39 per mile.
    If a member dies having received only a portion of the
amount payable as compensation, the unpaid balance shall be
paid to the surviving spouse of such member, or, if there be
none, to the estate of such member.
(Source: P.A. 89-405, eff. 11-8-95.)
 
ARTICLE 35. FY11 COLAS

 
    Section 35-5. The Compensation Review Act is amended by
changing Section 5.6 and by adding Section 5.7 as follows:
 
    (25 ILCS 120/5.6)
    Sec. 5.6. FY10 COLA's prohibited. Notwithstanding any
former or current provision of this Act, any other law, any
report of the Compensation Review Board, or any resolution of
the General Assembly to the contrary, members of the General
Assembly, State's attorneys, other than the county supplement,
the elected constitutional officers of State government, and
certain appointed officers of State government, including
members of State departments, agencies, boards, and
commissions whose annual compensation was recommended or
determined by the Compensation Review Board, are prohibited
from receiving and shall not receive any increase in
compensation that would otherwise apply based on a cost of
living adjustment, as authorized by Senate Joint Resolution 192
of the 86th General Assembly, for or during the fiscal year
beginning July 1, 2009. That cost of living adjustment shall
apply again in the fiscal year beginning July 1, 2010 and
thereafter.
(Source: P.A. 96-800, eff. 10-30-09.)
 
    (25 ILCS 120/5.7 new)
    Sec. 5.7. FY11 COLA's prohibited. Notwithstanding any
former or current provision of this Act, any other law, any
report of the Compensation Review Board, or any resolution of
the General Assembly to the contrary, members of the General
Assembly, State's attorneys, other than the county supplement,
elected executive branch constitutional officers of State
government, and persons in certain appointed offices of State
government, including the membership of State departments,
agencies, boards, and commissions, whose annual compensation
previously was recommended or determined by the Compensation
Review Board, are prohibited from receiving and shall not
receive any increase in compensation that would otherwise apply
based on a cost of living adjustment, as authorized by Senate
Joint Resolution 192 of the 86th General Assembly, for or
during the fiscal year beginning July 1, 2010. That cost of
living adjustment shall apply again in the fiscal year
beginning July 1, 2011 and thereafter.
 
ARTICLE 97. SEVERABILITY

 
    Section 97-1. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
 
ARTICLE 99. EFFECTIVE DATE

 
    Section 99-1. Effective date. This Act takes effect upon
becoming law.