SB2099 EnrolledLRB101 10599 HLH 55705 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Coronavirus Urgent Remediation Emergency Borrowing Act or the
6CURE Borrowing Act.
 
7    Section 5. Findings and purpose. The General Assembly finds
8that:
9    The State of Illinois is in the midst of both a public
10health emergency and a resultant fiscal crisis. The sudden
11worldwide outbreak of the Coronavirus Disease 2019 (COVID-19)
12and the spread of the disease in Illinois is causing dramatic
13economic upheaval and severe financial stress for individuals,
14businesses, health and other service providers, as well as the
15State and local governments across Illinois. It has resulted in
16declarations of disaster from both the Governor and the
17President of the United States. The disaster has caused, and
18will continue to cause for some time to come, reductions in
19revenues for the State at the same time expenditures must be
20incurred to respond to the emergency. The State requires
21greater flexibility to borrow efficiently and respond
22effectively to urgent financial needs as they arise.
23    The federal government has responded to the COVID-19

 

 

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1pandemic with the passage of legislation that provides
2emergency funding to state and local governments. One of the
3new funding programs, found in Section 4003 of the federal
4Coronavirus Aid, Relief, and Economic Stabilization Act (CARES
5Act) provides a Municipal Liquidity Facility administered by
6the Federal Reserve Bank with support from the United States
7Department of the Treasury, through which funds are being made
8available so that state and local governments may borrow funds
9directly from the program. The State of Illinois has the
10authority to participate in this program, any subsequent State
11and municipal financing program created by federal legislation
12to provide relief from the coronavirus pandemic (collectively
13"federal coronavirus financing legislation"), and any similar
14program that may be offered by the federal government or the
15Federal Reserve Bank.
16    The purpose of this Act is to revise the laws authorizing
17the State to borrow money and incur state debt so that the
18State will have needed flexibility in times of emergency, can
19borrow with enhanced efficiency in urgent circumstances, and
20can effectively utilize new borrowing programs and facilities
21offered by the United States Department of the Treasury and the
22Federal Reserve Bank, all while maintaining stringent
23standards for accountability and transparency.
 
24    Section 10. Borrowing authorized.
25    (a) Borrowing under this Section is authorized under

 

 

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1subsection (b) of Section 9 of Article IX of the Illinois
2Constitution. The Governor, with the approval of the
3Comptroller and Treasurer, is authorized to borrow funds from
4the Federal Reserve Bank or its agent in accordance with the
5Municipal Liquidity Facility program established pursuant to
6Section 4003 of the federal CARES Act and Section 13(3) of the
7Federal Reserve Act, or in accordance with any other federal
8coronavirus financing legislation or similar program
9authorized by the United States Congress. The purposes for
10which borrowing is authorized include:
11        (1) to meet failures of revenue resulting from the
12    COVID-19 outbreak and to support the emergency response
13    thereto;
14        (2) to provide funds for payment or reimbursement of
15    new or increased costs of State government resulting from
16    the COVID-19 outbreak and the emergency response thereto;
17        (3) to provide funds to respond to any other disaster
18    or emergency or failure of revenues or the costs of
19    essential government services;
20        (4) to provide funds for deposit into the Healthcare
21    Provider Relief Fund for payment of costs payable from the
22    Fund; and
23        (5) to provide funds for payment or reimbursement of
24    costs payable from the Health Insurance Reserve Fund.
25    Proceeds of the borrowing may also be used to pay the costs
26of borrowing and the debts created by the borrowing.

 

 

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1    (b) The Governor may borrow funds and contract debts from
2time to time, in principal amounts not to exceed $5,000,000,000
3outstanding at any time. Moneys thus borrowed shall be applied
4to any of the purposes described in this Section in accordance
5with properly enacted appropriations and transfers, or to pay
6the debts and associated expenses thus incurred, and to no
7other purpose. All proceeds from any borrowing under this Act,
8except those expended on the costs of issuance, shall be
9deposited into the Coronavirus Urgent Remediation Emergency
10Borrowing Fund (CURE Borrowing Fund). All moneys so borrowed
11shall be borrowed for no longer a time than the time limit set
12forth in federal program rules and guidance, and in no event
13longer than 10 years, and shall be repaid in equal principal
14payments or as required by federal program rules and guidance,
15if such requirements exist.
 
16    Section 15. Borrowing process.
17    (a) Whenever the borrowing of money under Section 10 is
18contemplated, the Director of the Governor's Office of
19Management and Budget, acting at the direction of the Governor,
20shall prepare for such borrowing in one or more series, in
21amounts, at prices and at interest rates, and in such manner as
22directed by the Governor.
23    (b) The Director of the Governor's Office of Management and
24Budget, acting at the direction of the Governor, may negotiate
25and borrow directly from the Federal Reserve Bank or its agent

 

 

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1in accordance with the Municipal Liquidity Facility program
2established pursuant to Section 4003 of the federal CARES Act
3and Section 13(3) of the Federal Reserve Act, or in accordance
4with any other federal coronavirus financing legislation or
5other program authorized by the United States Congress.
6    (c) The rate of interest on any borrowing pursuant to this
7Act shall not exceed the maximum rate authorized by the Bond
8Authorization Act, as amended at the time of the making of the
9contract. The requirements of the Illinois Procurement Code
10requiring competitive requests for proposal shall not apply to
11the selection of a lender in accordance with this Section.
 
12    Section 20. Bonds, notes, certificates or other
13facilities; appropriation.
14    (a) There shall be prepared, under the direction of the
15Governor, the form of bonds, notes, certificates or other
16facilities that the Governor deems advisable for borrowing
17pursuant to this Act. The bonds, notes, certificates or other
18facilities, when issued, shall be signed by the Governor and a
19record of their issuance shall be kept by the Comptroller. The
20interest on and principal of the debt shall be paid from the
21General Obligation Bond Retirement and Interest Fund.
22    (b) There is appropriated on a continuing basis, out of any
23money in the State treasury, a sum sufficient for the payment
24of the interest on and principal of any debts contracted under
25this Act, and the irrevocable and continuing authority for and

 

 

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1direction to the State Treasurer and the Comptroller to make
2the necessary transfers, as directed by the Governor.
3    (c) The Governor is authorized to order, pursuant to the
4proceedings authorizing debts contracted under this Act, the
5transfer of any moneys on deposit in the State treasury into
6the General Obligation Bond Retirement and Interest Fund at
7times and in amounts the Governor deems necessary to provide
8for the payment of that interest and principal.
9    (d) The Comptroller is authorized and directed to draw
10warrants on the State Treasurer for the amount of all payments
11of principal and interest on the bonds, notes, certificates or
12other facilities issued under this Act.
 
13    Section 50. The State Finance Act is amended by adding
14Sections 5.934 and 6z-123 as follows:
 
15    (30 ILCS 105/5.934 new)
16    Sec. 5.934. The Coronavirus Urgent Remediation Emergency
17Borrowing Fund (CURE Borrowing Fund).
 
18    (30 ILCS 105/6z-123 new)
19    Sec. 6z-123. Coronavirus Urgent Remediation Emergency
20Borrowing Fund. The Coronavirus Urgent Remediation Emergency
21Borrowing Fund (CURE Borrowing Fund) is created as a special
22fund in the State treasury for the purpose of receiving
23proceeds from borrowings transacted pursuant to the

 

 

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1Coronavirus Urgent Remediation Emergency Borrowing Act (CURE
2Borrowing Act) and for transferring and expending such moneys
3for the purposes authorized by that Act.
 
4    Section 55. The Short Term Borrowing Act is amended by
5changing Sections 1, 1.1, 2, and 3 as follows:
 
6    (30 ILCS 340/1)  (from Ch. 120, par. 406)
7    Sec. 1. Cash flow borrowing. Whenever significant timing
8variations occur between disbursement and receipt of budgeted
9funds within a fiscal year, making it necessary to borrow in
10anticipation of revenues to be collected in a fiscal year, in
11order to meet the same, the Governor, Comptroller and Treasurer
12may contract debts, in an amount not exceeding 5% of the
13State's appropriations for that fiscal year, and moneys thus
14borrowed shall be applied to the purpose for which they were
15obtained, or to pay the costs of borrowing and the debts thus
16created, and to no other purpose. All moneys so borrowed shall
17be repaid by the close of the fiscal year in which borrowed.
18(Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)
 
19    (30 ILCS 340/1.1)
20    Sec. 1.1. Borrowing upon emergencies or failures in
21revenue. Whenever emergencies or failures in revenues of the
22State occur, in order to meet deficits caused by those
23emergencies or failures, the Governor, Comptroller, and

 

 

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1Treasurer may contract debts in an amount not exceeding 15% of
2the State's appropriations for that fiscal year. The moneys
3thus borrowed shall be applied to the purposes for which they
4were obtained, or to pay the costs of borrowing and the debts
5thus created by the borrowing, and to no other purpose. Before
6incurring debt under this Section, the Governor shall give
7written notice to the Clerk of the House of Representatives,
8the Secretary of the Senate, and the Secretary of State setting
9forth the reasons for the proposed borrowing and the corrective
10measures recommended to restore the State's fiscal soundness.
11The notice shall be a public record and open for inspection at
12the offices of the Secretary of State during normal business
13hours. No debt may be incurred under this Section until 7 30
14days after the notice is served. All moneys so borrowed shall
15be borrowed for no longer time than one year.
16(Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)
 
17    (30 ILCS 340/2)  (from Ch. 120, par. 407)
18    Sec. 2. Sale of certificates. For borrowing authorized
19under Sections 1 and 1.1 of this Act, certificates may be
20issued and sold from time to time, in one or more series, in
21amounts, at prices and at interest rates, all as directed by
22the Governor, Comptroller, and Treasurer. Bidders shall submit
23sealed bids to the Director of the Governor's Office of
24Management and Budget upon such terms as shall be approved by
25the Governor, Comptroller, and Treasurer after such notice as

 

 

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1shall be determined to be reasonable by the Director of the
2Governor's Office of Management and Budget. The loan shall be
3awarded to the bidder offering the lowest effective rate of
4interest not exceeding the maximum rate authorized by the Bond
5Authorization Act as amended at the time of the making of the
6contract.
7    However, for borrowing authorized under Sections 1 and 1.1
8of this Act during fiscal years 2020 and 2021 only,
9certificates may be issued and sold on a negotiated basis
10rather than by sealed bid from time to time, in one or more
11series, in amounts, at prices and at interest rates, and in
12such manner, all as directed by the Governor, Comptroller, and
13Treasurer. The rate of interest must not exceed the maximum
14rate authorized by the Bond Authorization Act as amended at the
15time of the making of the contract. The requirements of the
16Illinois Procurement Code shall not apply to the selection of
17the purchaser of any certificates sold in accordance with the
18provisions of this paragraph.
19    With respect to instruments for the payment of money issued
20under this Section either before, on, or after the effective
21date of this amendatory Act of 1989, it is and always has been
22the intention of the General Assembly (i) that the Omnibus Bond
23Acts are and always have been supplementary grants of power to
24issue instruments in accordance with the Omnibus Bond Acts,
25regardless of any provision of this Act that may appear to be
26or to have been more restrictive than those Acts, (ii) that the

 

 

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1provisions of this Section are not a limitation on the
2supplementary authority granted by the Omnibus Bond Acts, and
3(iii) that instruments issued under this Section within the
4supplementary authority granted by the Omnibus Bond Acts are
5not invalid because of any provision of this Act that may
6appear to be or to have been more restrictive than those Acts.
7(Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)
 
8    (30 ILCS 340/3)  (from Ch. 120, par. 408)
9    Sec. 3. There shall be prepared under the direction of the
10officers named in this Act such form of bonds or certificates
11as they shall deem advisable, which, when issued, shall be
12signed by the Governor, Comptroller and Treasurer, and shall be
13recorded by the Comptroller in a book to be kept by him or her
14for that purpose. The interest and principal of such
15certificates loan shall be paid by the Treasurer treasurer out
16of the General Obligation Bond Retirement and Interest Fund.
17    There is hereby appropriated out of any money in the
18Treasury a sum sufficient for the payment of the interest and
19principal of any debts contracted under this Act.
20    The Governor, Comptroller, and Treasurer are authorized to
21order pursuant to the proceedings authorizing those debts the
22transfer of any moneys on deposit in the treasury into the
23General Obligation Bond Retirement and Interest Fund at times
24and in amounts they deem necessary to provide for the payment
25of that interest and principal.

 

 

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1    The Comptroller is hereby authorized and directed to draw
2his warrant on the State Treasurer for the amount of all such
3payments.
4    The directive authorizing borrowing under Section 1 or 1.1
5of this Act shall set forth a pro forma cash flow statement
6that identifies estimated monthly receipts and expenditures
7with identification of sources for repaying the borrowed funds.
8(Source: P.A. 101-275, eff. 8-9-19.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.