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1 | | President of the United States. The disaster has caused, and |
2 | | will continue to cause for some time to come, reductions in |
3 | | revenues for the State at the same time expenditures must be |
4 | | incurred to respond to the emergency. The State requires |
5 | | greater flexibility to borrow efficiently and respond |
6 | | effectively to urgent financial needs as they arise. |
7 | | The federal government has responded to the COVID-19 |
8 | | pandemic with the passage of legislation that provides |
9 | | emergency funding to state and local governments. One of the |
10 | | new funding programs, found in Section 4003 of the federal |
11 | | Coronavirus Aid, Relief, and Economic Stabilization Act (CARES |
12 | | Act) provides a Municipal Liquidity Facility administered by |
13 | | the Federal Reserve Bank with support from the United States |
14 | | Department of the Treasury, through which funds are being made |
15 | | available so that state and local governments may borrow funds |
16 | | directly from the program. The State of Illinois has the |
17 | | authority to participate in this program and any subsequent |
18 | | federal legislation allocating funds to the State to provide |
19 | | relief from the coronavirus pandemic (collectively "federal |
20 | | coronavirus relief legislation"). |
21 | | The purpose of this Act is to revise the laws authorizing |
22 | | the State to borrow money and incur state debt so that the |
23 | | State will have needed flexibility in times of emergency, can |
24 | | borrow with enhanced efficiency in urgent circumstances, and |
25 | | can effectively utilize new borrowing programs and facilities |
26 | | offered by the United States Department of the Treasury and the |
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1 | | Federal Reserve Bank, all while maintaining stringent |
2 | | standards for accountability and transparency. |
3 | | Section 10. Borrowing authorized. |
4 | | (a) Borrowing under this Section is authorized under |
5 | | subsection (b) of Section 9 of Article IX of the Illinois |
6 | | Constitution. The Governor, with the approval of the |
7 | | Comptroller and Treasurer, is authorized to borrow funds from |
8 | | the Federal Reserve Bank or its agent in accordance with the |
9 | | Municipal Liquidity Facility program established pursuant to |
10 | | Section 4003 of the federal CARES Act and Section 13(3) of the |
11 | | Federal Reserve Act, or in accordance with any other federal |
12 | | coronavirus relief legislation. The purposes for which |
13 | | borrowing is authorized include: |
14 | | (1) to meet failures of revenue resulting from the |
15 | | COVID-19 outbreak and to support the emergency response |
16 | | thereto; |
17 | | (2) to provide funds for payment or reimbursement of |
18 | | new or increased costs of State government resulting from |
19 | | the COVID-19 outbreak and the emergency response thereto; |
20 | | (3) to provide funds to respond to any other disaster |
21 | | or emergency or failure of revenues or the costs of |
22 | | essential government services; |
23 | | (4) to provide funds for payment or reimbursement of |
24 | | costs of medical services provided under the Illinois |
25 | | Public Aid Code and subject to federal reimbursement; and |
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1 | | (5) to provide funds for payment or reimbursement of |
2 | | costs payable from the Health Insurance Reserve Fund. |
3 | | Proceeds of the borrowing may also be used to pay the costs |
4 | | of borrowing and the debts created by the borrowing. |
5 | | (b) The Governor may borrow funds and contract debts from |
6 | | time to time, in principal amounts not to exceed $5,000,000,000 |
7 | | outstanding at any time. Moneys thus borrowed shall be applied |
8 | | to any of the purposes described in this Section in accordance |
9 | | with properly enacted appropriations and transfers, or to pay |
10 | | the debts and associated expenses thus incurred, and to no |
11 | | other purpose. All proceeds from any borrowing under this Act, |
12 | | except those expended on the costs of issuance, shall be |
13 | | deposited into the Coronavirus Urgent Remediation Emergency |
14 | | Borrowing Fund (CURE Borrowing Fund). All moneys so borrowed |
15 | | shall be borrowed for no longer a time than the time limit set |
16 | | forth in federal program rules and guidance, and in no event |
17 | | longer than 10 years, and shall be repaid in equal principal |
18 | | payments or as required by federal program rules and guidance, |
19 | | if such requirements exist. |
20 | | Section 15. Borrowing process. |
21 | | (a) Whenever the borrowing of money under Section 10 is |
22 | | contemplated, the Director of the Governor's Office of |
23 | | Management and Budget, acting at the direction of the Governor, |
24 | | shall prepare for such borrowing in one or more series, in |
25 | | amounts, at prices and at interest rates, and in such manner as |
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1 | | directed by the Governor. |
2 | | (b) The Director of the Governor's Office of Management and |
3 | | Budget, acting at the direction of the Governor, may negotiate |
4 | | and borrow directly from the Federal Reserve Bank or its agent |
5 | | in accordance with the Municipal Liquidity Facility program |
6 | | established pursuant to Section 4003 of the federal CARES Act |
7 | | and Section 13(3) of the Federal Reserve Act, or in accordance |
8 | | with any other federal coronavirus relief legislation. |
9 | | (c) The rate of interest on any borrowing pursuant to this |
10 | | Act shall not exceed the maximum rate authorized by the Bond |
11 | | Authorization Act, as amended at the time of the making of the |
12 | | contract. The requirements of the Illinois Procurement Code |
13 | | requiring competitive requests for proposal shall not apply to |
14 | | the selection of a lender in accordance with this Section. |
15 | | Section 20. Bonds, notes, certificates or other |
16 | | facilities; appropriation. |
17 | | (a) There shall be prepared, under the direction of the |
18 | | Governor, the form of bonds, notes, certificates or other |
19 | | facilities that the Governor deems advisable for borrowing |
20 | | pursuant to this Act. The bonds, notes, certificates or other |
21 | | facilities, when issued, shall be signed by the Governor and a |
22 | | record of their issuance shall be kept by the Comptroller. The |
23 | | interest on and principal of the debt shall be paid from the |
24 | | General Obligation Bond Retirement and Interest Fund. |
25 | | (b) There is appropriated on a continuing basis, out of any |
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1 | | money in the State treasury, a sum sufficient for the payment |
2 | | of the interest on and principal of any debts contracted under |
3 | | this Act, and the irrevocable and continuing authority for and |
4 | | direction to the State Treasurer and the Comptroller to make |
5 | | the necessary transfers, as directed by the Governor. |
6 | | (c) The Governor is authorized to order, pursuant to the |
7 | | proceedings authorizing debts contracted under this Act, the |
8 | | transfer of any moneys on deposit in the State treasury into |
9 | | the General Obligation Bond Retirement and Interest Fund at |
10 | | times and in amounts the Governor deems necessary to provide |
11 | | for the payment of that interest and principal. |
12 | | (d) The Comptroller is authorized and directed to draw |
13 | | warrants on the State Treasurer for the amount of all payments |
14 | | of principal and interest on the bonds, notes, certificates or |
15 | | other facilities issued under this Act. |
16 | | Section 50. The State Finance Act is amended by adding |
17 | | Sections 5.934 and 6z-123 as follows: |
18 | | (30 ILCS 105/5.934 new) |
19 | | Sec. 5.934. The Coronavirus Urgent Remediation Emergency |
20 | | Borrowing Fund (CURE Borrowing Fund). |
21 | | (30 ILCS 105/6z-123 new) |
22 | | Sec. 6z-123. Coronavirus Urgent Remediation Emergency |
23 | | Borrowing Fund. The Coronavirus Urgent Remediation Emergency |
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1 | | Borrowing Fund (CURE Borrowing Fund) is created as a special |
2 | | fund in the State treasury for the purpose of receiving |
3 | | proceeds from borrowings transacted pursuant to the |
4 | | Coronavirus Urgent Remediation Emergency Borrowing Act (CURE |
5 | | Borrowing Act) and for transferring and expending such moneys |
6 | | for the purposes authorized by that Act. |
7 | | Section 55. The Short Term Borrowing Act is amended by |
8 | | changing Sections 1, 1.1, 2, and 3 as follows:
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9 | | (30 ILCS 340/1) (from Ch. 120, par. 406)
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10 | | Sec. 1. Cash flow borrowing. Whenever significant timing |
11 | | variations
occur between disbursement and receipt of budgeted |
12 | | funds within a fiscal year,
making it necessary to borrow in |
13 | | anticipation of revenues to be collected in a
fiscal year,
in |
14 | | order to meet the same, the Governor, Comptroller and Treasurer
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15 | | may contract debts, in an amount not exceeding 5%
of the |
16 | | State's appropriations for that fiscal year, and moneys thus |
17 | | borrowed
shall be applied to the purpose for which they were |
18 | | obtained, or to pay the costs of borrowing and the
debts thus |
19 | | created, and to no other purpose. All moneys so borrowed shall |
20 | | be
repaid by the close of the fiscal year in which borrowed.
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21 | | (Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)
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22 | | (30 ILCS 340/1.1)
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23 | | Sec. 1.1. Borrowing upon emergencies or failures in |
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1 | | revenue. Whenever emergencies or failures in
revenues of the |
2 | | State occur, in order to meet deficits caused by those |
3 | | emergencies or failures, the Governor,
Comptroller, and |
4 | | Treasurer may contract debts in an amount
not exceeding 15% of |
5 | | the State's appropriations for that fiscal year. The
moneys |
6 | | thus borrowed shall be applied to the purposes for which they |
7 | | were
obtained, or to pay the costs of borrowing and the debts |
8 | | thus created by the borrowing, and to no other
purpose. Before |
9 | | incurring debt under this Section, the Governor shall give
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10 | | written notice to the Clerk of the House of Representatives, |
11 | | the Secretary of
the Senate, and the Secretary of State setting |
12 | | forth the reasons for the
proposed borrowing and the corrective |
13 | | measures recommended to restore the
State's fiscal soundness. |
14 | | The notice shall be a public record and open for
inspection at |
15 | | the offices of the Secretary of State during normal business
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16 | | hours. No debt may be incurred under this Section until 7 30 |
17 | | days after the
notice is served. All moneys so borrowed shall |
18 | | be borrowed for no longer time
than one year.
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19 | | (Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)
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20 | | (30 ILCS 340/2) (from Ch. 120, par. 407)
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21 | | Sec. 2. Sale of certificates. For borrowing authorized |
22 | | under Sections 1
and 1.1 of this Act, certificates may be |
23 | | issued and sold from time to time, in
one or more series, in |
24 | | amounts, at prices and at interest rates, all as
directed by |
25 | | the Governor, Comptroller, and Treasurer. Bidders shall submit
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1 | | sealed bids to the
Director of the
Governor's Office of |
2 | | Management and Budget upon such terms as shall be approved by
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3 | | the Governor, Comptroller, and Treasurer after such notice as |
4 | | shall be
determined to be reasonable by the Director of the
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5 | | Governor's Office of Management and Budget. The
loan shall be |
6 | | awarded to the bidder offering the lowest effective rate of
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7 | | interest not exceeding the maximum rate authorized by the Bond |
8 | | Authorization
Act as amended at the time of the making of the |
9 | | contract. |
10 | | However, for borrowing authorized under Sections 1 and 1.1 |
11 | | of this Act during fiscal years 2020 and 2021 only, |
12 | | certificates may be issued and sold on a negotiated basis |
13 | | rather than by sealed bid from time to time, in one or more |
14 | | series, in amounts, at prices and at interest rates, and in |
15 | | such manner, all as directed by the Governor, Comptroller, and |
16 | | Treasurer. The rate of interest must not exceed the maximum |
17 | | rate authorized by the Bond Authorization Act as amended at the |
18 | | time of the making of the contract. The requirements of the |
19 | | Illinois Procurement Code shall not apply to the selection of |
20 | | the purchaser of any certificates sold in accordance with the |
21 | | provisions of this paragraph.
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22 | | With respect to instruments for the payment of money issued |
23 | | under this
Section either before, on, or after the effective |
24 | | date of this amendatory
Act of 1989, it is and always has been |
25 | | the intention of the General
Assembly (i) that the Omnibus Bond |
26 | | Acts are and always have been
supplementary grants of power to |
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1 | | issue instruments in accordance with the
Omnibus Bond Acts, |
2 | | regardless of any provision of this Act that may appear
to be |
3 | | or to have been more restrictive than those Acts, (ii) that the
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4 | | provisions of this Section are not a limitation on the |
5 | | supplementary
authority granted by the Omnibus Bond Acts, and |
6 | | (iii) that instruments
issued under this Section within the |
7 | | supplementary authority granted
by the Omnibus Bond Acts are |
8 | | not invalid because of any provision of
this Act that may |
9 | | appear to be or to have been more restrictive than
those Acts.
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10 | | (Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)
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11 | | (30 ILCS 340/3) (from Ch. 120, par. 408)
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12 | | Sec. 3. There shall be prepared under the direction of the |
13 | | officers
named in this Act such form of bonds or certificates |
14 | | as they shall deem
advisable, which, when issued, shall be |
15 | | signed by the Governor, Comptroller
and Treasurer, and shall be |
16 | | recorded by the Comptroller in a
book to be kept by him or her |
17 | | for that purpose. The interest and principal
of such |
18 | | certificates loan shall be paid by the Treasurer treasurer out |
19 | | of the General Obligation Bond
Retirement and Interest Fund.
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20 | | There is hereby appropriated out of any money in the |
21 | | Treasury a sum
sufficient for the payment of the interest and |
22 | | principal of any debts
contracted under this Act.
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23 | | The Governor, Comptroller, and Treasurer are
authorized to |
24 | | order pursuant to the proceedings authorizing those debts the
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25 | | transfer of any moneys on deposit in the treasury into the |
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1 | | General
Obligation Bond Retirement and Interest Fund at times |
2 | | and in amounts they
deem necessary to provide for the payment |
3 | | of that interest and principal.
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4 | | The Comptroller is hereby authorized and directed to draw |
5 | | his warrant on
the State Treasurer for the amount of all such |
6 | | payments.
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7 | | The directive authorizing borrowing under Section 1 or 1.1 |
8 | | of this Act
shall set forth a pro forma cash flow statement |
9 | | that identifies estimated
monthly receipts and expenditures |
10 | | with identification of sources for
repaying the borrowed funds.
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11 | | (Source: P.A. 101-275, eff. 8-9-19.)
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12 | | Section 99. Effective date. This Act takes effect upon |
13 | | becoming law.".
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