HB3551 EnrolledLRB103 30888 HLH 57616 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 1.

 
5    Section 1-1. References to Act. This Act may be referred
6to as the Bond Authorization Act of 2023.
 
7
Article 5.

 
8    Section 5-1. The State Finance Act is amended by changing
9Section 6z-78 as follows:
 
10    (30 ILCS 105/6z-78)
11    Sec. 6z-78. Capital Projects Fund; bonded indebtedness;
12transfers. Money in the Capital Projects Fund shall, if and
13when the State of Illinois incurs any bonded indebtedness
14using the bond authorizations for capital projects enacted in
15Public Act 96-36, Public Act 96-1554, Public Act 97-771,
16Public Act 98-94, and using the general obligation bond
17authorizations for capital projects enacted in Public Act
18101-30 and in this amendatory Act of the 103rd General
19Assembly, be set aside and used for the purpose of paying and
20discharging annually the principal and interest on that bonded

 

 

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1indebtedness then due and payable.
2    In addition to other transfers to the General Obligation
3Bond Retirement and Interest Fund made pursuant to Section 15
4of the General Obligation Bond Act, upon each delivery of
5general obligation bonds for capital projects using bond
6authorizations enacted in Public Act 96-36, Public Act
796-1554, Public Act 97-771, Public Act 98-94, and Public Act
8101-30 (except for amounts in Public Act 101-30 that increase
9bond authorization under paragraph (1) of subsection (a) of
10Section 4 and subsection (e) of Section 4 of the General
11Obligation Bond Act), and this amendatory Act of the 103rd
12General Assembly, the State Comptroller shall compute and
13certify to the State Treasurer the total amount of principal
14of, interest on, and premium, if any, on such bonds during the
15then current and each succeeding fiscal year. With respect to
16the interest payable on variable rate bonds, such
17certifications shall be calculated at the maximum rate of
18interest that may be payable during the fiscal year, after
19taking into account any credits permitted in the related
20indenture or other instrument against the amount of such
21interest required to be appropriated for the period.
22    (a) Except as provided for in subsection (b), on or before
23the last day of each month, the State Treasurer and State
24Comptroller shall transfer from the Capital Projects Fund to
25the General Obligation Bond Retirement and Interest Fund an
26amount sufficient to pay the aggregate of the principal of,

 

 

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1interest on, and premium, if any, on the bonds payable on their
2next payment date, divided by the number of monthly transfers
3occurring between the last previous payment date (or the
4delivery date if no payment date has yet occurred) and the next
5succeeding payment date. Interest payable on variable rate
6bonds shall be calculated at the maximum rate of interest that
7may be payable for the relevant period, after taking into
8account any credits permitted in the related indenture or
9other instrument against the amount of such interest required
10to be appropriated for that period. Interest for which moneys
11have already been deposited into the capitalized interest
12account within the General Obligation Bond Retirement and
13Interest Fund shall not be included in the calculation of the
14amounts to be transferred under this subsection.
15    (b) On or before the last day of each month, the State
16Treasurer and State Comptroller shall transfer from the
17Capital Projects Fund to the General Obligation Bond
18Retirement and Interest Fund an amount sufficient to pay the
19aggregate of the principal of, interest on, and premium, if
20any, on the bonds issued prior to January 1, 2012 pursuant to
21Section 4(d) of the General Obligation Bond Act payable on
22their next payment date, divided by the number of monthly
23transfers occurring between the last previous payment date (or
24the delivery date if no payment date has yet occurred) and the
25next succeeding payment date. If the available balance in the
26Capital Projects Fund is not sufficient for the transfer

 

 

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1required in this subsection, the State Treasurer and State
2Comptroller shall transfer the difference from the Road Fund
3to the General Obligation Bond Retirement and Interest Fund;
4except that such Road Fund transfers shall constitute a debt
5of the Capital Projects Fund which shall be repaid according
6to subsection (c). Interest payable on variable rate bonds
7shall be calculated at the maximum rate of interest that may be
8payable for the relevant period, after taking into account any
9credits permitted in the related indenture or other instrument
10against the amount of such interest required to be
11appropriated for that period. Interest for which moneys have
12already been deposited into the capitalized interest account
13within the General Obligation Bond Retirement and Interest
14Fund shall not be included in the calculation of the amounts to
15be transferred under this subsection.
16    (c) On the first day of any month when the Capital Projects
17Fund is carrying a debt to the Road Fund due to the provisions
18of subsection (b), the State Treasurer and State Comptroller
19shall transfer from the Capital Projects Fund to the Road Fund
20an amount sufficient to discharge that debt. These transfers
21to the Road Fund shall continue until the Capital Projects
22Fund has repaid to the Road Fund all transfers made from the
23Road Fund pursuant to subsection (b). Notwithstanding any
24other law to the contrary, transfers to the Road Fund from the
25Capital Projects Fund shall be made prior to any other
26expenditures or transfers out of the Capital Projects Fund.

 

 

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1(Source: P.A. 101-30, eff. 6-28-19; 101-604, eff. 12-13-19.)
 
2
Article 10.

 
3    Section 10-1. The General Obligation Bond Act is amended
4by changing Sections 2, 3, 6, 7, 7.6, 8, 9, 10, 11, and 16 as
5follows:
 
6    (30 ILCS 330/2)  (from Ch. 127, par. 652)
7    Sec. 2. Authorization for Bonds. The State of Illinois is
8authorized to issue, sell and provide for the retirement of
9General Obligation Bonds of the State of Illinois for the
10categories and specific purposes expressed in Sections 2
11through 8 of this Act, in the total amount of $79,440,839,969
12$79,256,839,969.
13    The bonds authorized in this Section 2 and in Section 16 of
14this Act are herein called "Bonds".
15    Of the total amount of Bonds authorized in this Act, up to
16$2,200,000,000 in aggregate original principal amount may be
17issued and sold in accordance with the Baccalaureate Savings
18Act in the form of General Obligation College Savings Bonds.
19    Of the total amount of Bonds authorized in this Act, up to
20$300,000,000 in aggregate original principal amount may be
21issued and sold in accordance with the Retirement Savings Act
22in the form of General Obligation Retirement Savings Bonds.
23    Of the total amount of Bonds authorized in this Act, the

 

 

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1additional $10,000,000,000 authorized by Public Act 93-2, the
2$3,466,000,000 authorized by Public Act 96-43, and the
3$4,096,348,300 authorized by Public Act 96-1497 shall be used
4solely as provided in Section 7.2.
5    Of the total amount of Bonds authorized in this Act, the
6additional $6,000,000,000 authorized by Public Act 100-23
7shall be used solely as provided in Section 7.6 and shall be
8issued by December 31, 2017.
9    Of the total amount of Bonds authorized in this Act,
10$2,000,000,000 of the additional amount authorized by Public
11Act 100-587 and by Public Act 102-718 this amendatory Act of
12the 102nd General Assembly shall be used solely as provided in
13Section 7.7.
14    The issuance and sale of Bonds pursuant to the General
15Obligation Bond Act is an economical and efficient method of
16financing the long-term capital needs of the State. This Act
17will permit the issuance of a multi-purpose General Obligation
18Bond with uniform terms and features. This will not only lower
19the cost of registration but also reduce the overall cost of
20issuing debt by improving the marketability of Illinois
21General Obligation Bonds.
22(Source: P.A. 101-30, eff. 6-28-19; 102-718, eff. 5-5-22.)
 
23    (30 ILCS 330/3)  (from Ch. 127, par. 653)
24    Sec. 3. Capital facilities. The amount of $18,745,011,269
25$18,580,011,269 is authorized to be used for the acquisition,

 

 

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1development, construction, reconstruction, improvement,
2demolition, financing, architectural planning and installation
3of capital facilities within the State, consisting of
4buildings, structures, durable equipment, land, interests in
5land, and the costs associated with the purchase and
6implementation of information technology, including but not
7limited to the purchase of hardware and software, for the
8following specific purposes:
9        (a) $6,333,676,500 $6,268,676,500 for educational
10    purposes by State universities and public community
11    colleges, the Illinois Community College Board created by
12    the Public Community College Act and for grants to public
13    community colleges as authorized by Sections 5-11 and 5-12
14    of the Public Community College Act;
15        (b) $1,690,506,300 for correctional purposes at State
16    prison and correctional centers;
17        (c) $688,492,300 for open spaces, recreational and
18    conservation purposes and the protection of land,
19    including expenditures and grants for the Illinois
20    Conservation Reserve Enhancement Program and for ecosystem
21    restoration and for plugging of abandoned wells;
22        (d) $1,078,503,900 for State child care facilities,
23    mental and public health facilities, and facilities for
24    the care of veterans with disabilities and their spouses,
25    and for grants to public and private community health
26    centers, hospitals, and other health care providers for

 

 

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1    capital facilities;
2        (e) $7,568,753,300 $7,518,753,300 for use by the
3    State, its departments, authorities, public corporations,
4    commissions and agencies, including renewable energy
5    upgrades at State facilities;
6        (f) $818,100 for cargo handling facilities at port
7    districts and for breakwaters, including harbor entrances,
8    at port districts in conjunction with facilities for small
9    boats and pleasure crafts;
10        (g) $425,457,000 $375,457,000 for water resource
11    management projects, including flood mitigation and State
12    dam and waterway projects;
13        (h) $16,940,269 for the provision of facilities for
14    food production research and related instructional and
15    public service activities at the State universities and
16    public community colleges;
17        (i) $75,134,700 for grants by the Secretary of State,
18    as State Librarian, for central library facilities
19    authorized by Section 8 of the Illinois Library System Act
20    and for grants by the Capital Development Board to units
21    of local government for public library facilities;
22        (j) $25,000,000 for the acquisition, development,
23    construction, reconstruction, improvement, financing,
24    architectural planning and installation of capital
25    facilities consisting of buildings, structures, durable
26    equipment and land for grants to counties, municipalities

 

 

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1    or public building commissions with correctional
2    facilities that do not comply with the minimum standards
3    of the Department of Corrections under Section 3-15-2 of
4    the Unified Code of Corrections;
5        (k) $5,011,600 for grants by the Department of
6    Conservation for improvement or expansion of aquarium
7    facilities located on property owned by a park district;
8        (l) $599,590,000 to State agencies for grants to local
9    governments for the acquisition, financing, architectural
10    planning, development, alteration, installation, and
11    construction of capital facilities consisting of
12    buildings, structures, durable equipment, and land; and
13        (m) $237,127,300 for the Illinois Open Land Trust
14    Program as defined by the Illinois Open Land Trust Act.
15    The amounts authorized above for capital facilities may be
16used for the acquisition, installation, alteration,
17construction, or reconstruction of capital facilities and for
18the purchase of equipment for the purpose of major capital
19improvements which will reduce energy consumption in State
20buildings or facilities.
21(Source: P.A. 100-587, eff. 6-4-18; 101-30, eff. 6-28-19.)
 
22    (30 ILCS 330/6)  (from Ch. 127, par. 656)
23    Sec. 6. Anti-Pollution.
24    (a) The amount of $611,814,300 $581,814,300 is authorized
25for allocation by the Environmental Protection Agency for

 

 

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1grants or loans to units of local government, including grants
2to disadvantaged communities without modern sewage systems, in
3such amounts, at such times and for such purpose as the Agency
4deems necessary or desirable for the planning, financing, and
5construction of sewage treatment works and solid waste
6disposal facilities and for making of deposits into the Water
7Revolving Fund and the U.S. Environmental Protection Fund to
8provide assistance in accordance with the provisions of Title
9IV-A of the Environmental Protection Act.
10    (b) The amount of $236,500,000 is authorized for
11allocation by the Environmental Protection Agency for payment
12of claims submitted to the State and approved for payment
13under the Leaking Underground Storage Tank Program established
14in Title XVI of the Environmental Protection Act.
15(Source: P.A. 101-30, eff. 6-28-19.)
 
16    (30 ILCS 330/7)  (from Ch. 127, par. 657)
17    Sec. 7. Coal and Energy Development. The amount of
18$212,700,000 $242,700,000 is authorized to be used by the
19Department of Commerce and Economic Opportunity (formerly
20Department of Commerce and Community Affairs) for coal and
21energy development purposes, pursuant to Sections 2, 3 and 3.1
22of the Illinois Coal and Energy Development Bond Act, for the
23purposes specified in Section 8.1 of the Energy Conservation
24and Coal Development Act, for the purposes specified in
25Section 605-332 of the Department of Commerce and Economic

 

 

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1Opportunity Law of the Civil Administrative Code of Illinois,
2and for the purpose of facility cost reports prepared pursuant
3to Sections 1-58 or 1-75(d)(4) of the Illinois Power Agency
4Act and for the purpose of development costs pursuant to
5Section 8.1 of the Energy Conservation and Coal Development
6Act. Of this amount:
7    (a) $128,500,000 $143,500,000 is for the specific purposes
8of acquisition, development, construction, reconstruction,
9improvement, financing, architectural and technical planning
10and installation of capital facilities consisting of
11buildings, structures, durable equipment, and land for the
12purpose of capital development of coal resources within the
13State and for the purposes specified in Section 8.1 of the
14Energy Conservation and Coal Development Act;
15    (b) $20,000,000 $35,000,000 is for the purposes specified
16in Section 8.1 of the Energy Conservation and Coal Development
17Act and making grants to generating stations and coal
18gasification facilities within the State of Illinois and to
19the owner of a generating station located in Illinois and
20having at least three coal-fired generating units with
21accredited summer capability greater than 500 megawatts each
22at such generating station as provided in Section 6 of that
23Bond Act;
24    (c) $13,200,000 is for research, development and
25demonstration of forms of energy other than that derived from
26coal, either on or off State property;

 

 

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1    (d) $0 is for the purpose of providing financial
2assistance to new electric generating facilities as provided
3in Section 605-332 of the Department of Commerce and Economic
4Opportunity Law of the Civil Administrative Code of Illinois;
5and
6    (e) $51,000,000 is for the purpose of facility cost
7reports prepared for not more than one facility pursuant to
8Section 1-75(d)(4) of the Illinois Power Agency Act and not
9more than one facility pursuant to Section 1-58 of the
10Illinois Power Agency Act and for the purpose of up to
11$6,000,000 of development costs pursuant to Section 8.1 of the
12Energy Conservation and Coal Development Act.
13(Source: P.A. 98-94, eff. 7-17-13; 98-781, eff. 7-22-14.)
 
14    (30 ILCS 330/7.6)
15    Sec. 7.6. Income Tax Proceed Bonds.
16    (a) As used in this Act, "Income Tax Proceed Bonds" means
17Bonds (i) authorized by Public Act 100-23 this amendatory Act
18of the 100th General Assembly or any other Public Act of the
19100th or 101st General Assembly authorizing the issuance of
20Income Tax Proceed Bonds and (ii) used for the payment of
21unpaid obligations of the State as incurred from time to time
22and as authorized by the General Assembly.
23    (b) Income Tax Proceed Bonds in the amount of
24$6,000,000,000 are hereby authorized to be used for the
25purpose of paying vouchers incurred by the State prior to July

 

 

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11, 2017. Additional Income Tax Proceed Bonds in the amount of
2$1,200,000,000 are hereby authorized to be used for the
3purpose of paying vouchers incurred by the State and accruing
4interest payable by the State prior to the date on which the
5Income Tax Proceed Bonds are issued.
6    (c) The Income Tax Bond Fund is hereby created as a special
7fund in the State treasury. All moneys from the proceeds of the
8sale of the Income Tax Proceed Bonds, less the amounts
9authorized in the Bond Sale Order to be directly paid out for
10bond sale expenses under Section 8, shall be deposited into
11the Income Tax Bond Fund. All moneys in the Income Tax Bond
12Fund shall be used for the purpose of paying vouchers incurred
13by the State prior to July 1, 2017 or for paying vouchers
14incurred by the State more than 90 days prior to the date on
15which the Income Tax Proceed Bonds are issued. For the purpose
16of paying such vouchers, the Comptroller has the authority to
17transfer moneys from the Income Tax Bond Fund to general funds
18and the Health Insurance Reserve Fund. "General funds" has the
19meaning provided in Section 50-40 of the State Budget Law.
20(Source: P.A. 100-23, eff. 7-6-17; 101-30, eff. 6-28-19;
21101-604, eff. 12-13-19.)
 
22    (30 ILCS 330/8)  (from Ch. 127, par. 658)
23    Sec. 8. Bond sale expenses.
24    (a) An amount not to exceed 0.5 percent of the principal
25amount of the proceeds of sale of each bond sale is authorized

 

 

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1to be used to pay the reasonable costs of each issuance and
2sale, including, without limitation, underwriter's discounts
3and fees, but excluding bond insurance, of State of Illinois
4general obligation bonds authorized and sold pursuant to this
5Act, including, without limitation, underwriter's discounts
6and fees, but excluding bond insurance; provided that no
7salaries of State employees or other State office operating
8expenses shall be paid out of non-appropriated proceeds, and
9provided further that the percent shall be 1.0% for each sale
10of "Build America Bonds" or "Qualified School Construction
11Bonds" as defined in subsections (d) and (e) of Section 9,
12respectively. The Governor's Office of Management and Budget
13shall compile a summary of all costs of issuance on each sale
14(including both costs paid out of proceeds and those paid out
15of appropriated funds) and post that summary on its web site
16within 20 business days after the issuance of the Bonds. The
17summary shall include, as applicable, the respective
18percentages of participation and compensation of each
19underwriter that is a member of the underwriting syndicate,
20legal counsel, financial advisors, and other professionals for
21the bond issue and an identification of all costs of issuance
22paid to minority-owned businesses, women-owned businesses, and
23businesses owned by persons with disabilities. The terms
24"minority-owned businesses", "women-owned businesses", and
25"business owned by a person with a disability" have the
26meanings given to those terms in the Business Enterprise for

 

 

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1Minorities, Women, and Persons with Disabilities Act. The
2summary That posting shall be posted maintained on the web
3site for a period of at least 30 days. In addition, the
4Governor's Office of Management and Budget shall provide a
5written copy of each summary of costs to the Speaker and
6Minority Leader of the House of Representatives, the President
7and Minority Leader of the Senate, and the Commission on
8Government Forecasting and Accountability within 20 business
9days after each issuance of the Bonds. In addition, the
10Governor's Office of Management and Budget shall provide
11copies of all contracts under which any costs of issuance are
12paid or to be paid to the Commission on Government Forecasting
13and Accountability within 20 business days after the issuance
14of Bonds for which those costs are paid or to be paid. Instead
15of filing a second or subsequent copy of the same contract, the
16Governor's Office of Management and Budget may file a
17statement that specified costs are paid under specified
18contracts filed earlier with the Commission.
19    (b) The Director of the Governor's Office of Management
20and Budget shall not, in connection with the issuance of
21Bonds, contract with any underwriter, financial advisor, or
22attorney unless that underwriter, financial advisor, or
23attorney certifies that the underwriter, financial advisor, or
24attorney has not and will not pay a contingent fee, whether
25directly or indirectly, to a third party for having promoted
26the selection of the underwriter, financial advisor, or

 

 

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1attorney for that contract. In the event that the Governor's
2Office of Management and Budget determines that an
3underwriter, financial advisor, or attorney has filed a false
4certification with respect to the payment of contingent fees,
5the Governor's Office of Management and Budget shall not
6contract with that underwriter, financial advisor, or
7attorney, or with any firm employing any person who signed
8false certifications, for a period of 2 calendar years,
9beginning with the date the determination is made. The
10validity of Bonds issued under such circumstances of violation
11pursuant to this Section shall not be affected.
12(Source: P.A. 100-391, eff. 8-25-17.)
 
13    (30 ILCS 330/9)  (from Ch. 127, par. 659)
14    Sec. 9. Conditions for issuance and sale of Bonds;
15requirements for Bonds.
16    (a) Except as otherwise provided in this subsection,
17subsection (h), and subsection (i), Bonds shall be issued and
18sold from time to time, in one or more series, in such amounts
19and at such prices as may be directed by the Governor, upon
20recommendation by the Director of the Governor's Office of
21Management and Budget. Bonds shall be in such form (either
22coupon, registered or book entry), in such denominations,
23payable within 25 years from their date, subject to such terms
24of redemption with or without premium, bear interest payable
25at such times and at such fixed or variable rate or rates, and

 

 

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1be dated as shall be fixed and determined by the Director of
2the Governor's Office of Management and Budget in the order
3authorizing the issuance and sale of any series of Bonds,
4which order shall be approved by the Governor and is herein
5called a "Bond Sale Order"; provided however, that interest
6payable at fixed or variable rates shall not exceed that
7permitted in the Bond Authorization Act, as now or hereafter
8amended. Bonds shall be payable at such place or places,
9within or without the State of Illinois, and may be made
10registrable as to either principal or as to both principal and
11interest, as shall be specified in the Bond Sale Order. Bonds
12may be callable or subject to purchase and retirement or
13tender and remarketing as fixed and determined in the Bond
14Sale Order. Bonds, other than Bonds issued under Section 3 of
15this Act for the costs associated with the purchase and
16implementation of information technology, (i) except for
17refunding Bonds satisfying the requirements of Section 16 of
18this Act must be issued with principal or mandatory redemption
19amounts in equal amounts, with the first maturity issued
20occurring within the fiscal year in which the Bonds are issued
21or within the next succeeding fiscal year and (ii) must mature
22or be subject to mandatory redemption each fiscal year
23thereafter up to 25 years, except for refunding Bonds
24satisfying the requirements of Section 16 of this Act and sold
25during fiscal year 2009, 2010, or 2011 which must mature or be
26subject to mandatory redemption each fiscal year thereafter up

 

 

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1to 16 years. Bonds issued under Section 3 of this Act for the
2costs associated with the purchase and implementation of
3information technology must be issued with principal or
4mandatory redemption amounts in equal amounts, with the first
5maturity issued occurring with the fiscal year in which the
6respective bonds are issued or with the next succeeding fiscal
7year, with the respective bonds issued maturing or subject to
8mandatory redemption each fiscal year thereafter up to 10
9years. Notwithstanding any provision of this Act to the
10contrary, the Bonds authorized by Public Act 96-43 shall be
11payable within 5 years from their date and must be issued with
12principal or mandatory redemption amounts in equal amounts,
13with payment of principal or mandatory redemption beginning in
14the first fiscal year following the fiscal year in which the
15Bonds are issued.
16    Notwithstanding any provision of this Act to the contrary,
17the Bonds authorized by Public Act 96-1497 shall be payable
18within 8 years from their date and shall be issued with payment
19of maturing principal or scheduled mandatory redemptions in
20accordance with the following schedule, except the following
21amounts shall be prorated if less than the total additional
22amount of Bonds authorized by Public Act 96-1497 are issued:
23    Fiscal Year After Issuance    Amount
24        1-2                        $0 
25        3                          $110,712,120
26        4                          $332,136,360

 

 

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1        5                          $664,272,720
2        6-8                        $996,409,080
3    Notwithstanding any provision of this Act to the contrary,
4Income Tax Proceed Bonds issued under Section 7.6 shall be
5payable 12 years from the date of sale and shall be issued with
6payment of principal or mandatory redemption.
7    In the case of any series of Bonds bearing interest at a
8variable interest rate ("Variable Rate Bonds"), in lieu of
9determining the rate or rates at which such series of Variable
10Rate Bonds shall bear interest and the price or prices at which
11such Variable Rate Bonds shall be initially sold or remarketed
12(in the event of purchase and subsequent resale), the Bond
13Sale Order may provide that such interest rates and prices may
14vary from time to time depending on criteria established in
15such Bond Sale Order, which criteria may include, without
16limitation, references to indices or variations in interest
17rates as may, in the judgment of a remarketing agent, be
18necessary to cause Variable Rate Bonds of such series to be
19remarketable from time to time at a price equal to their
20principal amount, and may provide for appointment of a bank,
21trust company, investment bank, or other financial institution
22to serve as remarketing agent in that connection. The Bond
23Sale Order may provide that alternative interest rates or
24provisions for establishing alternative interest rates,
25different security or claim priorities, or different call or
26amortization provisions will apply during such times as

 

 

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1Variable Rate Bonds of any series are held by a person
2providing credit or liquidity enhancement arrangements for
3such Bonds as authorized in subsection (b) of this Section.
4The Bond Sale Order may also provide for such variable
5interest rates to be established pursuant to a process
6generally known as an auction rate process and may provide for
7appointment of one or more financial institutions to serve as
8auction agents and broker-dealers in connection with the
9establishment of such interest rates and the sale and
10remarketing of such Bonds.
11    (b) In connection with the issuance of any series of
12Bonds, the State may enter into arrangements to provide
13additional security and liquidity for such Bonds, including,
14without limitation, bond or interest rate insurance or letters
15of credit, lines of credit, bond purchase contracts, or other
16arrangements whereby funds are made available to retire or
17purchase Bonds, thereby assuring the ability of owners of the
18Bonds to sell or redeem their Bonds. The State may enter into
19contracts and may agree to pay fees to persons providing such
20arrangements, but only under circumstances where the Director
21of the Governor's Office of Management and Budget certifies
22that he or she reasonably expects the total interest paid or to
23be paid on the Bonds, together with the fees for the
24arrangements (being treated as if interest), would not, taken
25together, cause the Bonds to bear interest, calculated to
26their stated maturity, at a rate in excess of the rate that the

 

 

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1Bonds would bear in the absence of such arrangements.
2    The State may, with respect to Bonds issued or anticipated
3to be issued, participate in and enter into arrangements with
4respect to interest rate protection or exchange agreements,
5guarantees, or financial futures contracts for the purpose of
6limiting, reducing, or managing interest rate exposure. The
7authority granted under this paragraph, however, shall not
8increase the principal amount of Bonds authorized to be issued
9by law. The arrangements may be executed and delivered by the
10Director of the Governor's Office of Management and Budget on
11behalf of the State. Net payments for such arrangements shall
12constitute interest on the Bonds and shall be paid from the
13General Obligation Bond Retirement and Interest Fund. The
14Director of the Governor's Office of Management and Budget
15shall at least annually certify to the Governor and the State
16Comptroller his or her estimate of the amounts of such net
17payments to be included in the calculation of interest
18required to be paid by the State.
19    (c) Prior to the issuance of any Variable Rate Bonds
20pursuant to subsection (a), the Director of the Governor's
21Office of Management and Budget shall adopt an interest rate
22risk management policy providing that the amount of the
23State's variable rate exposure with respect to Bonds shall not
24exceed 20%. This policy shall remain in effect while any Bonds
25are outstanding and the issuance of Bonds shall be subject to
26the terms of such policy. The terms of this policy may be

 

 

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1amended from time to time by the Director of the Governor's
2Office of Management and Budget but in no event shall any
3amendment cause the permitted level of the State's variable
4rate exposure with respect to Bonds to exceed 20%.
5    (d) "Build America Bonds" in this Section means Bonds
6authorized by Section 54AA of the Internal Revenue Code of
71986, as amended ("Internal Revenue Code"), and bonds issued
8from time to time to refund or continue to refund "Build
9America Bonds".
10    (e) Notwithstanding any other provision of this Section,
11Qualified School Construction Bonds shall be issued and sold
12from time to time, in one or more series, in such amounts and
13at such prices as may be directed by the Governor, upon
14recommendation by the Director of the Governor's Office of
15Management and Budget. Qualified School Construction Bonds
16shall be in such form (either coupon, registered or book
17entry), in such denominations, payable within 25 years from
18their date, subject to such terms of redemption with or
19without premium, and if the Qualified School Construction
20Bonds are issued with a supplemental coupon, bear interest
21payable at such times and at such fixed or variable rate or
22rates, and be dated as shall be fixed and determined by the
23Director of the Governor's Office of Management and Budget in
24the order authorizing the issuance and sale of any series of
25Qualified School Construction Bonds, which order shall be
26approved by the Governor and is herein called a "Bond Sale

 

 

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1Order"; except that interest payable at fixed or variable
2rates, if any, shall not exceed that permitted in the Bond
3Authorization Act, as now or hereafter amended. Qualified
4School Construction Bonds shall be payable at such place or
5places, within or without the State of Illinois, and may be
6made registrable as to either principal or as to both
7principal and interest, as shall be specified in the Bond Sale
8Order. Qualified School Construction Bonds may be callable or
9subject to purchase and retirement or tender and remarketing
10as fixed and determined in the Bond Sale Order. Qualified
11School Construction Bonds must be issued with principal or
12mandatory redemption amounts or sinking fund payments into the
13General Obligation Bond Retirement and Interest Fund (or
14subaccount therefor) in equal amounts, with the first maturity
15issued, mandatory redemption payment or sinking fund payment
16occurring within the fiscal year in which the Qualified School
17Construction Bonds are issued or within the next succeeding
18fiscal year, with Qualified School Construction Bonds issued
19maturing or subject to mandatory redemption or with sinking
20fund payments thereof deposited each fiscal year thereafter up
21to 25 years. Sinking fund payments set forth in this
22subsection shall be permitted only to the extent authorized in
23Section 54F of the Internal Revenue Code or as otherwise
24determined by the Director of the Governor's Office of
25Management and Budget. "Qualified School Construction Bonds"
26in this subsection means Bonds authorized by Section 54F of

 

 

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1the Internal Revenue Code and for bonds issued from time to
2time to refund or continue to refund such "Qualified School
3Construction Bonds".
4    (f) Beginning with the next issuance by the Governor's
5Office of Management and Budget to the Procurement Policy
6Board of a request for qualifications quotation for the
7purpose of formulating a new pool of qualified underwriters
8underwriting banks list, all entities responding to such a
9request for qualifications quotation for inclusion on that
10list shall provide a written report to the Governor's Office
11of Management and Budget and the Illinois Comptroller. The
12written report submitted to the Comptroller shall (i) be
13published on the Comptroller's Internet website and (ii) be
14used by the Governor's Office of Management and Budget for the
15purposes of scoring such a request for qualifications
16quotation. The written report, at a minimum, shall:
17        (1) disclose whether, within the past 3 months,
18    pursuant to its credit default swap market-making
19    activities, the firm has entered into any State of
20    Illinois credit default swaps ("CDS");
21        (2) include, in the event of State of Illinois CDS
22    activity, disclosure of the firm's cumulative notional
23    volume of State of Illinois CDS trades and the firm's
24    outstanding gross and net notional amount of State of
25    Illinois CDS, as of the end of the current 3-month period;
26        (3) indicate, pursuant to the firm's proprietary

 

 

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1    trading activities, disclosure of whether the firm, within
2    the past 3 months, has entered into any proprietary trades
3    for its own account in State of Illinois CDS;
4        (4) include, in the event of State of Illinois
5    proprietary trades, disclosure of the firm's outstanding
6    gross and net notional amount of proprietary State of
7    Illinois CDS and whether the net position is short or long
8    credit protection, as of the end of the current 3-month
9    period;
10        (5) list all time periods during the past 3 months
11    during which the firm held net long or net short State of
12    Illinois CDS proprietary credit protection positions, the
13    amount of such positions, and whether those positions were
14    net long or net short credit protection positions; and
15        (6) indicate whether, within the previous 3 months,
16    the firm released any publicly available research or
17    marketing reports that reference State of Illinois CDS and
18    include those research or marketing reports as
19    attachments.
20    (g) All entities included on a Governor's Office of
21Management and Budget's pool of qualified underwriters
22underwriting banks list shall, as soon as possible after March
2318, 2011 (the effective date of Public Act 96-1554), but not
24later than January 21, 2011, and on a quarterly fiscal basis
25thereafter, provide a written report to the Governor's Office
26of Management and Budget and the Illinois Comptroller. The

 

 

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1written reports submitted to the Comptroller shall be
2published on the Comptroller's Internet website. The written
3reports, at a minimum, shall:
4        (1) disclose whether, within the past 3 months,
5    pursuant to its credit default swap market-making
6    activities, the firm has entered into any State of
7    Illinois credit default swaps ("CDS");
8        (2) include, in the event of State of Illinois CDS
9    activity, disclosure of the firm's cumulative notional
10    volume of State of Illinois CDS trades and the firm's
11    outstanding gross and net notional amount of State of
12    Illinois CDS, as of the end of the current 3-month period;
13        (3) indicate, pursuant to the firm's proprietary
14    trading activities, disclosure of whether the firm, within
15    the past 3 months, has entered into any proprietary trades
16    for its own account in State of Illinois CDS;
17        (4) include, in the event of State of Illinois
18    proprietary trades, disclosure of the firm's outstanding
19    gross and net notional amount of proprietary State of
20    Illinois CDS and whether the net position is short or long
21    credit protection, as of the end of the current 3-month
22    period;
23        (5) list all time periods during the past 3 months
24    during which the firm held net long or net short State of
25    Illinois CDS proprietary credit protection positions, the
26    amount of such positions, and whether those positions were

 

 

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1    net long or net short credit protection positions; and
2        (6) indicate whether, within the previous 3 months,
3    the firm released any publicly available research or
4    marketing reports that reference State of Illinois CDS and
5    include those research or marketing reports as
6    attachments.
7    (h) Notwithstanding any other provision of this Section,
8for purposes of maximizing market efficiencies and cost
9savings, Income Tax Proceed Bonds may be issued and sold from
10time to time, in one or more series, in such amounts and at
11such prices as may be directed by the Governor, upon
12recommendation by the Director of the Governor's Office of
13Management and Budget. Income Tax Proceed Bonds shall be in
14such form, either coupon, registered, or book entry, in such
15denominations, shall bear interest payable at such times and
16at such fixed or variable rate or rates, and be dated as shall
17be fixed and determined by the Director of the Governor's
18Office of Management and Budget in the order authorizing the
19issuance and sale of any series of Income Tax Proceed Bonds,
20which order shall be approved by the Governor and is herein
21called a "Bond Sale Order"; provided, however, that interest
22payable at fixed or variable rates shall not exceed that
23permitted in the Bond Authorization Act. Income Tax Proceed
24Bonds shall be payable at such place or places, within or
25without the State of Illinois, and may be made registrable as
26to either principal or as to both principal and interest, as

 

 

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1shall be specified in the Bond Sale Order. Income Tax Proceed
2Bonds may be callable or subject to purchase and retirement or
3tender and remarketing as fixed and determined in the Bond
4Sale Order.
5    (i) Notwithstanding any other provision of this Section,
6for purposes of maximizing market efficiencies and cost
7savings, State Pension Obligation Acceleration Bonds may be
8issued and sold from time to time, in one or more series, in
9such amounts and at such prices as may be directed by the
10Governor, upon recommendation by the Director of the
11Governor's Office of Management and Budget. State Pension
12Obligation Acceleration Bonds shall be in such form, either
13coupon, registered, or book entry, in such denominations,
14shall bear interest payable at such times and at such fixed or
15variable rate or rates, and be dated as shall be fixed and
16determined by the Director of the Governor's Office of
17Management and Budget in the order authorizing the issuance
18and sale of any series of State Pension Obligation
19Acceleration Bonds, which order shall be approved by the
20Governor and is herein called a "Bond Sale Order"; provided,
21however, that interest payable at fixed or variable rates
22shall not exceed that permitted in the Bond Authorization Act.
23State Pension Obligation Acceleration Bonds shall be payable
24at such place or places, within or without the State of
25Illinois, and may be made registrable as to either principal
26or as to both principal and interest, as shall be specified in

 

 

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1the Bond Sale Order. State Pension Obligation Acceleration
2Bonds may be callable or subject to purchase and retirement or
3tender and remarketing as fixed and determined in the Bond
4Sale Order.
5(Source: P.A. 100-23, Article 25, Section 25-5, eff. 7-6-17;
6100-23, Article 75, Section 75-10, eff. 7-6-17; 100-587,
7Article 60, Section 60-5, eff. 6-4-18; 100-587, Article 110,
8Section 110-15, eff. 6-4-18; 100-863, eff. 8-14-18; 101-30,
9eff. 6-28-19; 101-81, eff. 7-12-19.)
 
10    (30 ILCS 330/10)  (from Ch. 127, par. 660)
11    Sec. 10. Execution of Bonds. Bonds shall be signed by the
12Governor and attested by the Secretary of State under the
13printed facsimile seal of the State and countersigned by the
14State Treasurer by his manual signature or by his duly
15authorized deputy. If Bonds are issued in registered form
16pursuant to the Registered Bond Act, the signatures of the
17Governor, the Secretary of State and the State Treasurer may
18be printed facsimile signatures. Unless Bonds are issued in
19fully registered form, interest coupons with facsimile
20signatures of the Governor, Secretary of State and State
21Treasurer may be attached to the Bonds. The fact that an
22officer whose signature or facsimile thereof appears on a Bond
23or interest coupon no longer holds such office at the time the
24Bond or coupon is delivered shall not invalidate such Bond or
25interest coupon.

 

 

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1(Source: P.A. 83-1490.)
 
2    (30 ILCS 330/11)  (from Ch. 127, par. 661)
3    Sec. 11. Sale of Bonds. Except as otherwise provided in
4this Section, Bonds shall be sold from time to time pursuant to
5notice of sale and public bid or by negotiated sale in such
6amounts and at such times as is directed by the Governor, upon
7recommendation by the Director of the Governor's Office of
8Management and Budget. At least 25%, based on total principal
9amount, of all Bonds issued each fiscal year shall be sold
10pursuant to notice of sale and public bid. At all times during
11each fiscal year, no more than 75%, based on total principal
12amount, of the Bonds issued each fiscal year, shall have been
13sold by negotiated sale. Failure to satisfy the requirements
14in the preceding 2 sentences shall not affect the validity of
15any previously issued Bonds; provided that all Bonds
16authorized by Public Act 96-43 and Public Act 96-1497 shall
17not be included in determining compliance for any fiscal year
18with the requirements of the preceding 2 sentences; and
19further provided that refunding Bonds satisfying the
20requirements of Section 16 of this Act shall not be subject to
21the requirements in the preceding 2 sentences.
22    The If any Bonds, including refunding Bonds, are to be
23sold by negotiated sale, the Director of the Governor's Office
24of Management and Budget shall comply in the selection of any
25bond counsel with the competitive request for proposal process

 

 

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1set forth in the Illinois Procurement Code and all other
2applicable requirements of that Code. The Director of the
3Governor's Office of Management and Budget may select any
4financial advisor from a pool of qualified advisors
5established pursuant to a request for qualifications. If any
6Bonds, including refunding Bonds, are to be sold by negotiated
7sale, the Director of the Governor's Office of Management and
8Budget shall select any underwriter from a pool of qualified
9underwriters established pursuant to a request for
10qualifications.
11    If Bonds are to be sold pursuant to notice of sale and
12public bid, the Director of the Governor's Office of
13Management and Budget may, from time to time, as Bonds are to
14be sold, advertise the sale of the Bonds in at least 2 daily
15newspapers, one of which is published in the City of
16Springfield and one in the City of Chicago. The sale of the
17Bonds shall also be advertised in the BidBuy eProcurement
18System or any successor procurement platform maintained volume
19of the Illinois Procurement Bulletin that is published by the
20Chief Procurement Officer for General Services Department of
21Central Management Services, and shall be published once at
22least 10 days prior to the date fixed for the opening of the
23bids. The Director of the Governor's Office of Management and
24Budget may reschedule the date of sale upon the giving of such
25additional notice as the Director deems adequate to inform
26prospective bidders of such change; provided, however, that

 

 

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1all other conditions of the sale shall continue as originally
2advertised.
3    Executed Bonds shall, upon payment therefor, be delivered
4to the purchaser, and the proceeds of Bonds shall be paid into
5the State Treasury as directed by Section 12 of this Act.
6    All Income Tax Proceed Bonds shall comply with this
7Section. Notwithstanding anything to the contrary, however,
8for purposes of complying with this Section, Income Tax
9Proceed Bonds, regardless of the number of series or issuances
10sold thereunder, shall be considered a single issue or series.
11Furthermore, for purposes of complying with the competitive
12bidding requirements of this Section, the words "at all times"
13shall not apply to any such sale of the Income Tax Proceed
14Bonds. The Director of the Governor's Office of Management and
15Budget shall determine the time and manner of any competitive
16sale of the Income Tax Proceed Bonds; however, that sale shall
17under no circumstances take place later than 60 days after the
18State closes the sale of 75% of the Income Tax Proceed Bonds by
19negotiated sale.
20    All State Pension Obligation Acceleration Bonds shall
21comply with this Section. Notwithstanding anything to the
22contrary, however, for purposes of complying with this
23Section, State Pension Obligation Acceleration Bonds,
24regardless of the number of series or issuances sold
25thereunder, shall be considered a single issue or series.
26Furthermore, for purposes of complying with the competitive

 

 

HB3551 Enrolled- 33 -LRB103 30888 HLH 57616 b

1bidding requirements of this Section, the words "at all times"
2shall not apply to any such sale of the State Pension
3Obligation Acceleration Bonds. The Director of the Governor's
4Office of Management and Budget shall determine the time and
5manner of any competitive sale of the State Pension Obligation
6Acceleration Bonds; however, that sale shall under no
7circumstances take place later than 60 days after the State
8closes the sale of 75% of the State Pension Obligation
9Acceleration Bonds by negotiated sale.
10(Source: P.A. 100-23, Article 25, Section 25-5, eff. 7-6-17;
11100-23, Article 75, Section 75-10, eff. 7-6-17; 100-587,
12Article 60, Section 60-5, eff. 6-4-18; 100-587, Article 110,
13Section 110-15, eff. 6-4-18; 100-863, eff. 8-4-18; 101-30,
14eff. 6-28-19; 101-81, eff. 7-12-19.)
 
15    (30 ILCS 330/16)  (from Ch. 127, par. 666)
16    Sec. 16. Refunding Bonds. The State of Illinois is
17authorized to issue, sell, and provide for the retirement of
18General Obligation Bonds of the State of Illinois in the
19amount of $4,839,025,000, at any time and from time to time
20outstanding, for the purpose of refunding any State of
21Illinois general obligation Bonds then outstanding, including
22(i) the payment of any redemption premium thereon, (ii) any
23reasonable expenses of such refunding, (iii) any interest
24accrued or to accrue to the earliest or any subsequent date of
25redemption or maturity of such outstanding Bonds, (iv) for

 

 

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1fiscal year 2019 only, any necessary payments to providers of
2interest rate exchange agreements in connection with the
3termination of such agreements by the State in connection with
4the refunding, and (v) any interest to accrue to the first
5interest payment on the refunding Bonds; provided that all
6non-refunding Bonds in an issue that includes refunding Bonds
7shall mature no later than the final maturity date of Bonds
8being refunded; provided that no refunding Bonds shall be
9offered for sale unless the net present value of debt service
10savings to be achieved by the issuance of the refunding Bonds
11is 3% or more of the principal amount of the refunded Bonds or
12the principal amount of the refunding Bonds to be issued;
13refunding Bonds shall mature within the term of the Bonds
14being refunded in compliance with paragraph (e) of Section 9
15of Article IX of the Illinois Constitution of 1970 and further
16provided that, except for refunding Bonds sold in fiscal year
172009, 2010, 2011, 2017, 2018, 2019, or 2022, the maturities of
18the refunding Bonds shall not extend beyond the maturities of
19the Bonds they refund, so that for each fiscal year in the
20maturity schedule of a particular issue of refunding Bonds,
21the total amount of refunding principal maturing and
22redemption amounts due in that fiscal year and all prior
23fiscal years in that schedule shall be greater than or equal to
24the total amount of refunded principal and redemption amounts
25that had been due over that year and all prior fiscal years
26prior to the refunding.

 

 

HB3551 Enrolled- 35 -LRB103 30888 HLH 57616 b

1    The Governor shall notify the State Treasurer and
2Comptroller of such refunding. The proceeds received from the
3sale of refunding Bonds shall be used for the retirement at
4maturity or redemption of such outstanding Bonds on any
5maturity or redemption date and, pending such use, shall be
6placed in escrow, subject to such terms and conditions as
7shall be provided for in the Bond Sale Order relating to the
8Refunding Bonds. Proceeds not needed for deposit in an escrow
9account shall be deposited in the General Obligation Bond
10Retirement and Interest Fund. This Act shall constitute an
11irrevocable and continuing appropriation of all amounts
12necessary to establish an escrow account for the purpose of
13refunding outstanding general obligation Bonds and to pay the
14reasonable expenses of such refunding and of the issuance and
15sale of the refunding Bonds. Any such escrowed proceeds may be
16invested and reinvested in direct obligations of the United
17States of America, maturing at such time or times as shall be
18appropriate to assure the prompt payment, when due, of the
19principal of and interest and redemption premium, if any, on
20the refunded Bonds. After the terms of the escrow have been
21fully satisfied, any remaining balance of such proceeds and
22interest, income and profits earned or realized on the
23investments thereof shall be paid into the General Revenue
24Fund. The liability of the State upon the Bonds shall
25continue, provided that the holders thereof shall thereafter
26be entitled to payment only out of the moneys deposited in the

 

 

HB3551 Enrolled- 36 -LRB103 30888 HLH 57616 b

1escrow account.
2    Except as otherwise herein provided in this Section, such
3refunding Bonds shall in all other respects be subject to the
4terms and conditions of this Act.
5(Source: P.A. 102-16, eff. 6-17-21.)
 
6
Article 15.

 
7    Section 15-1. The Build Illinois Bond Act is amended by
8changing Sections 2, 4, 5, 8, and 15 as follows:
 
9    (30 ILCS 425/2)  (from Ch. 127, par. 2802)
10    Sec. 2. Authorization for Bonds. The State of Illinois is
11authorized to issue, sell and provide for the retirement of
12limited obligation bonds, notes and other evidences of
13indebtedness of the State of Illinois in the total principal
14amount of $10,019,681,100 $9,484,681,100 herein called
15"Bonds". Such amount of authorized Bonds shall be exclusive of
16any refunding Bonds issued pursuant to Section 15 of this Act
17and exclusive of any Bonds issued pursuant to this Section
18which are redeemed, purchased, advance refunded, or defeased
19in accordance with paragraph (f) of Section 4 of this Act.
20Bonds shall be issued for the categories and specific purposes
21expressed in Section 4 of this Act.
22(Source: P.A. 101-30, eff. 6-28-19; 102-1071, eff. 6-10-22.)
 

 

 

HB3551 Enrolled- 37 -LRB103 30888 HLH 57616 b

1    (30 ILCS 425/4)  (from Ch. 127, par. 2804)
2    Sec. 4. Purposes of Bonds. Bonds shall be issued for the
3following purposes and in the approximate amounts as set forth
4below:
5    (a) $4,506,094,533 $4,372,761,200 for the expenses of
6issuance and sale of Bonds, including bond discounts, and for
7planning, engineering, acquisition, construction,
8reconstruction, development, improvement, demolition, and
9extension of the public infrastructure in the State of
10Illinois, including: the making of loans or grants to local
11governments for waste disposal systems, water and sewer line
12extensions and water distribution and purification facilities,
13rail or air or water port improvements, gas and electric
14utility extensions, publicly owned industrial and commercial
15sites, buildings used for public administration purposes and
16other public infrastructure capital improvements; the making
17of loans or grants to units of local government for financing
18and construction of wastewater facilities, including grants to
19serve unincorporated areas; refinancing or retiring bonds
20issued between January 1, 1987 and January 1, 1990 by home rule
21municipalities, debt service on which is provided from a tax
22imposed by home rule municipalities prior to January 1, 1990
23on the sale of food and drugs pursuant to Section 8-11-1 of the
24Home Rule Municipal Retailers' Occupation Tax Act or Section
258-11-5 of the Home Rule Municipal Service Occupation Tax Act;
26the making of deposits not to exceed $70,000,000 in the

 

 

HB3551 Enrolled- 38 -LRB103 30888 HLH 57616 b

1aggregate into the Water Pollution Control Revolving Fund to
2provide assistance in accordance with the provisions of Title
3IV-A of the Environmental Protection Act; the planning,
4engineering, acquisition, construction, reconstruction,
5alteration, expansion, extension and improvement of highways,
6bridges, structures separating highways and railroads, rest
7areas, interchanges, access roads to and from any State or
8local highway and other transportation improvement projects
9which are related to economic development activities; the
10making of loans or grants for planning, engineering,
11rehabilitation, improvement or construction of rail and
12transit facilities; the planning, engineering, acquisition,
13construction, reconstruction and improvement of watershed,
14drainage, flood control, recreation and related improvements
15and facilities, including expenses related to land and
16easement acquisition, relocation, control structures, channel
17work and clearing and appurtenant work; the planning,
18engineering, acquisition, construction, reconstruction and
19improvement of State facilities and related infrastructure;
20the making of Park and Recreational Facilities Construction
21(PARC) grants; the making of grants to units of local
22government for community development capital projects; the
23making of grants for improvement and development of zoos and
24park district field houses and related structures; and the
25making of grants for improvement and development of Navy Pier
26and related structures.

 

 

HB3551 Enrolled- 39 -LRB103 30888 HLH 57616 b

1    (b) $2,474,636,967 $2,122,970,300 for fostering economic
2development and increased employment and fostering the well
3being of the citizens of Illinois through community
4development, including: the making of grants for improvement
5and development of McCormick Place and related structures; the
6planning and construction of a microelectronics research
7center, including the planning, engineering, construction,
8improvement, renovation and acquisition of buildings,
9equipment and related utility support systems; the making of
10loans to businesses and investments in small businesses;
11acquiring real properties for industrial or commercial site
12development; acquiring, rehabilitating and reconveying
13industrial and commercial properties for the purpose of
14expanding employment and encouraging private and other public
15sector investment in the economy of Illinois; the payment of
16expenses associated with siting the Superconducting Super
17Collider Particle Accelerator in Illinois and with its
18acquisition, construction, maintenance, operation, promotion
19and support; the making of loans for the planning,
20engineering, acquisition, construction, improvement and
21conversion of facilities and equipment which will foster the
22use of Illinois coal; the payment of expenses associated with
23the promotion, establishment, acquisition and operation of
24small business incubator facilities and agribusiness research
25facilities, including the lease, purchase, renovation,
26planning, engineering, construction and maintenance of

 

 

HB3551 Enrolled- 40 -LRB103 30888 HLH 57616 b

1buildings, utility support systems and equipment designated
2for such purposes and the establishment and maintenance of
3centralized support services within such facilities; the
4making of grants for transportation electrification
5infrastructure projects that promote use of clean and
6renewable energy; the making of capital expenditures and
7grants for broadband development and for a statewide broadband
8deployment grant program; the making of grants to public
9entities and private persons and entities for community
10development capital projects; the making of grants to public
11entities and private persons and entities for capital projects
12in the context of grant programs focused on assisting
13economically depressed areas, expanding affordable housing,
14supporting the provision of human services, supporting
15emerging technology enterprises, and supporting minority owned
16businesses; and the making of grants or loans to units of local
17government for Urban Development Action Grant and Housing
18Partnership programs.
19    (c) $2,761,076,600 $2,711,076,600 for the development and
20improvement of educational, scientific, technical and
21vocational programs and facilities and the expansion of health
22and human services for all citizens of Illinois, including:
23the making of grants to school districts and not-for-profit
24organizations for early childhood construction projects
25pursuant to Section 5-300 of the School Construction Law; the
26making of grants to educational institutions for educational,

 

 

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1scientific, technical and vocational program equipment and
2facilities; the making of grants to museums for equipment and
3facilities; the making of construction and improvement grants
4and loans to public libraries and library systems; the making
5of grants and loans for planning, engineering, acquisition and
6construction of a new State central library in Springfield;
7the planning, engineering, acquisition and construction of an
8animal and dairy sciences facility; the planning, engineering,
9acquisition and construction of a campus and all related
10buildings, facilities, equipment and materials for Richland
11Community College; the acquisition, rehabilitation and
12installation of equipment and materials for scientific and
13historical surveys; the making of grants or loans for
14distribution to eligible vocational education instructional
15programs for the upgrading of vocational education programs,
16school shops and laboratories, including the acquisition,
17rehabilitation and installation of technical equipment and
18materials; the making of grants or loans for distribution to
19eligible local educational agencies for the upgrading of math
20and science instructional programs, including the acquisition
21of instructional equipment and materials; miscellaneous
22capital improvements for universities and community colleges
23including the planning, engineering, construction,
24reconstruction, remodeling, improvement, repair and
25installation of capital facilities and costs of planning,
26supplies, equipment, materials, services, and all other

 

 

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1required expenses; the making of grants or loans for repair,
2renovation and miscellaneous capital improvements for
3privately operated colleges and universities and community
4colleges, including the planning, engineering, acquisition,
5construction, reconstruction, remodeling, improvement, repair
6and installation of capital facilities and costs of planning,
7supplies, equipment, materials, services, and all other
8required expenses; and the making of grants or loans for
9distribution to local governments for hospital and other
10health care facilities including the planning, engineering,
11acquisition, construction, reconstruction, remodeling,
12improvement, repair and installation of capital facilities and
13costs of planning, supplies, equipment, materials, services
14and all other required expenses.
15    (d) $277,873,000 for protection, preservation, restoration
16and conservation of environmental and natural resources,
17including: the making of grants to soil and water conservation
18districts for the planning and implementation of conservation
19practices and for funding contracts with the Soil Conservation
20Service for watershed planning; the making of grants to units
21of local government for the capital development and
22improvement of recreation areas, including planning and
23engineering costs, sewer projects, including planning and
24engineering costs and water projects, including planning and
25engineering costs, and for the acquisition of open space
26lands, including the acquisition of easements and other

 

 

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1property interests of less than fee simple ownership; the
2making of grants to units of local government through the
3Illinois Green Infrastructure Grant Program to protect water
4quality and mitigate flooding; the acquisition and related
5costs and development and management of natural heritage
6lands, including natural areas and areas providing habitat for
7endangered species and nongame wildlife, and buffer area
8lands; the acquisition and related costs and development and
9management of habitat lands, including forest, wildlife
10habitat and wetlands; and the removal and disposition of
11hazardous substances, including the cost of project
12management, equipment, laboratory analysis, and contractual
13services necessary for preventative and corrective actions
14related to the preservation, restoration and conservation of
15the environment, including deposits not to exceed $60,000,000
16in the aggregate into the Hazardous Waste Fund and the
17Brownfields Redevelopment Fund for improvements in accordance
18with the provisions of Titles V and XVII of the Environmental
19Protection Act.
20    (e) The amount specified in paragraph (a) above shall
21include an amount necessary to pay reasonable expenses of each
22issuance and sale of the Bonds, as specified in the related
23Bond Sale Order (hereinafter defined).
24    (f) Any unexpended proceeds from any sale of Bonds which
25are held in the Build Illinois Bond Fund may be used to redeem,
26purchase, advance refund, or defease any Bonds outstanding.

 

 

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1(Source: P.A. 101-30, eff. 6-28-19.)
 
2    (30 ILCS 425/5)  (from Ch. 127, par. 2805)
3    Sec. 5. Bond sale expenses.
4    (a) Costs for advertising, printing, bond rating, travel
5of outside vendors, security, delivery, and legal and
6financial advisory services, initial fees of trustees,
7registrars, paying agents and other fiduciaries, initial costs
8of credit or liquidity enhancement arrangements, initial fees
9of indexing and remarketing agents, and initial costs of
10interest rate swaps, guarantees or arrangements to limit
11interest rate risk, as determined in the related Bond Sale
12Order, may be paid as reasonable costs of issuance and sale
13from the proceeds of each Bond sale. An amount not to exceed 1%
140.5% of the principal amount of the proceeds of the sale of
15each bond sale is authorized to be used to pay additional
16reasonable costs of each issuance and sale of Bonds authorized
17and sold pursuant to this Act, including, without limitation,
18underwriter's discounts and fees, but excluding bond
19insurance; , advertising, printing, bond rating, travel of
20outside vendors, security, delivery, legal and financial
21advisory services, initial fees of trustees, registrars,
22paying agents and other fiduciaries, initial costs of credit
23or liquidity enhancement arrangements, initial fees of
24indexing and remarketing agents, and initial costs of interest
25rate swaps, guarantees or arrangements to limit interest rate

 

 

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1risk, as determined in the related Bond Sale Order, from the
2proceeds of each Bond sale, provided that no salaries of State
3employees or other State office operating expenses shall be
4paid out of non-appropriated proceeds, and provided further
5that the percent shall be 1.0% for each sale of "Build America
6Bonds" as defined in subsection (c) of Section 6. The
7Governor's Office of Management and Budget shall compile a
8summary of all costs of issuance on each sale (including both
9costs paid out of proceeds and those paid out of appropriated
10funds) and post that summary on its web site within 20 business
11days after the issuance of the bonds. That posting shall be
12maintained on the web site for a period of at least 30 days. In
13addition, the Governor's Office of Management and Budget shall
14provide a written copy of each summary of costs to the Speaker
15and Minority Leader of the House of Representatives, the
16President and Minority Leader of the Senate, and the
17Commission on Government Forecasting and Accountability within
1820 business days after each issuance of the bonds. The This
19summary shall include, as applicable, the respective
20percentage of participation and compensation of each
21underwriter that is a member of the underwriting syndicate,
22legal counsel, financial advisors, and other professionals for
23the Bond issue, and an identification of all costs of issuance
24paid to minority-owned businesses, women-owned businesses, and
25businesses owned by persons with disabilities. The terms
26"minority-owned businesses", "women-owned businesses", and

 

 

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1"business owned by a person with a disability" have the
2meanings given to those terms in the Business Enterprise for
3Minorities, Women, and Persons with Disabilities Act. The
4summary shall be posted on the website for a period of at least
530 days. In addition, the Governor's Office of Management and
6Budget shall provide a written copy of each summary of costs to
7the Speaker and Minority Leader of the House of
8Representatives, the President and Minority Leader of the
9Senate, and the Commission on Government Forecasting and
10Accountability within 20 business days after each issuance of
11the bonds. In addition, the Governor's Office of Management
12and Budget shall provide copies of all contracts under which
13any costs of issuance are paid or to be paid to the Commission
14on Government Forecasting and Accountability within 20
15business days after the issuance of Bonds for which those
16costs are paid or to be paid. Instead of filing a second or
17subsequent copy of the same contract, the Governor's Office of
18Management and Budget may file a statement that specified
19costs are paid under specified contracts filed earlier with
20the Commission.
21    (b) The Director of the Governor's Office of Management
22and Budget shall not, in connection with the issuance of
23Bonds, contract with any underwriter, financial advisor, or
24attorney unless that underwriter, financial advisor, or
25attorney certifies that the underwriter, financial advisor, or
26attorney has not and will not pay a contingent fee, whether

 

 

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1directly or indirectly, to any third party for having promoted
2the selection of the underwriter, financial advisor, or
3attorney for that contract. In the event that the Governor's
4Office of Management and Budget determines that an
5underwriter, financial advisor, or attorney has filed a false
6certification with respect to the payment of contingent fees,
7the Governor's Office of Management and Budget shall not
8contract with that underwriter, financial advisor, or
9attorney, or with any firm employing any person who signed
10false certifications, for a period of 2 calendar years,
11beginning with the date the determination is made. The
12validity of Bonds issued under such circumstances of violation
13pursuant to this Section shall not be affected.
14(Source: P.A. 100-391, eff. 8-25-17.)
 
15    (30 ILCS 425/8)  (from Ch. 127, par. 2808)
16    Sec. 8. Sale of Bonds. Bonds, except as otherwise provided
17in this Section, shall be sold from time to time pursuant to
18notice of sale and public bid or by negotiated sale in such
19amounts and at such times as are directed by the Governor, upon
20recommendation by the Director of the Governor's Office of
21Management and Budget. At least 25%, based on total principal
22amount, of all Bonds issued each fiscal year shall be sold
23pursuant to notice of sale and public bid. At all times during
24each fiscal year, no more than 75%, based on total principal
25amount, of the Bonds issued each fiscal year shall have been

 

 

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1sold by negotiated sale. Failure to satisfy the requirements
2in the preceding 2 sentences shall not affect the validity of
3any previously issued Bonds; and further provided that
4refunding Bonds satisfying the requirements of Section 15 of
5this Act shall not be subject to the requirements in the
6preceding 2 sentences.
7    The If any Bonds are to be sold pursuant to notice of sale
8and public bid, the Director of the Governor's Office of
9Management and Budget shall comply in the selection of any
10bond counsel with the competitive request for proposal process
11set forth in the Illinois Procurement Code and all other
12applicable requirements of that Code. The Director of the
13Governor's Office of Management and Budget may select any
14financial advisor from a pool of qualified advisors
15established pursuant to a request for qualifications. If any
16Bonds, including refunding Bonds, are to be sold by negotiated
17sale, the Director of the Governor's Office of Management and
18Budget shall select any underwriters from a pool of qualified
19underwriters established pursuant to a request for
20qualifications.
21    If Bonds are to be sold pursuant to notice of sale and
22public bid, the Director of the Governor's Office of
23Management and Budget may, from time to time, as Bonds are to
24be sold, advertise the sale of the Bonds in at least 2 daily
25newspapers, one of which is published in the City of
26Springfield and one in the City of Chicago. The sale of the

 

 

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1Bonds shall also be advertised in the BidBuy eProcurement
2System or any successor procurement platform maintained volume
3of the Illinois Procurement Bulletin that is published by the
4Chief Procurement Officer for General Services Department of
5Central Management Services, and shall be published once at
6least 10 days prior to the date fixed for the opening of the
7bids. The Director of the Governor's Office of Management and
8Budget may reschedule the date of sale upon the giving of such
9additional notice as the Director deems adequate to inform
10prospective bidders of the change; provided, however, that all
11other conditions of the sale shall continue as originally
12advertised. Executed Bonds shall, upon payment therefor, be
13delivered to the purchaser, and the proceeds of Bonds shall be
14paid into the State Treasury as directed by Section 9 of this
15Act. The Governor or the Director of the Governor's Office of
16Management and Budget are is hereby authorized and directed to
17execute and deliver contracts of sale with underwriters and to
18execute and deliver such certificates, indentures, agreements
19and documents, including any supplements or amendments
20thereto, and to take such actions and do such things as shall
21be necessary or desirable to carry out the purposes of this
22Act. Any action authorized or permitted to be taken by the
23Director of the Governor's Office of Management and Budget
24pursuant to this Act is hereby authorized to be taken by any
25person specifically designated by the Governor to take such
26action in a certificate signed by the Governor and filed with

 

 

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1the Secretary of State.
2(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
3101-30, eff. 6-28-19.)
 
4    (30 ILCS 425/15)  (from Ch. 127, par. 2815)
5    Sec. 15. Refunding Bonds. Refunding Bonds are hereby
6authorized for the purpose of refunding any outstanding Bonds,
7including the payment of any redemption premium thereon, any
8reasonable expenses of such refunding, and any interest
9accrued or to accrue to the earliest or any subsequent date of
10redemption or maturity of outstanding Bonds; provided that all
11non-refunding Bonds in an issue that includes refunding Bonds
12shall mature no later than the final maturity date of Bonds
13being refunded; provided that no refunding Bonds shall be
14offered for sale unless the net present value of debt service
15savings to be achieved by the issuance of the refunding Bonds
16is 3% or more of the principal amount of the refunded Bonds or
17the principal amount of the refunding Bonds to be issued; and
18further provided that refunding Bonds shall mature within the
19term of the Bonds being refunded in compliance with paragraph
20(e) of Section 9 of Article IX of the Illinois Constitution of
211970 , except for refunding Bonds sold in fiscal years 2009,
222010, 2011, 2017, 2018, 2019, or 2022 the maturities of the
23refunding Bonds shall not extend beyond the maturities of the
24Bonds they refund, so that for each fiscal year in the maturity
25schedule of a particular issue of refunding Bonds, the total

 

 

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1amount of refunding principal maturing and redemption amounts
2due in that fiscal year and all prior fiscal years in that
3schedule shall be greater than or equal to the total amount of
4refunded principal and redemption amounts that had been due
5over that year and all prior fiscal years prior to the
6refunding.
7    Refunding Bonds may be sold in such amounts and at such
8times, as directed by the Governor upon recommendation by the
9Director of the Governor's Office of Management and Budget.
10The Governor shall notify the State Treasurer and Comptroller
11of such refunding. The proceeds received from the sale of
12refunding Bonds shall be used for the retirement at maturity
13or redemption of such outstanding Bonds on any maturity or
14redemption date and, pending such use, shall be placed in
15escrow, subject to such terms and conditions as shall be
16provided for in the Bond Sale Order relating to the refunding
17Bonds. This Act shall constitute an irrevocable and continuing
18appropriation of all amounts necessary to establish an escrow
19account for the purpose of refunding outstanding Bonds and to
20pay the reasonable expenses of such refunding and of the
21issuance and sale of the refunding Bonds. Any such escrowed
22proceeds may be invested and reinvested in direct obligations
23of the United States of America, maturing at such time or times
24as shall be appropriate to assure the prompt payment, when
25due, of the principal of and interest and redemption premium,
26if any, on the refunded Bonds. After the terms of the escrow

 

 

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1have been fully satisfied, any remaining balance of such
2proceeds and interest, income and profits earned or realized
3on the investments thereof shall be paid into the General
4Revenue Fund. The liability of the State upon the refunded
5Bonds shall continue, provided that the holders thereof shall
6thereafter be entitled to payment only out of the moneys
7deposited in the escrow account and the refunded Bonds shall
8be deemed paid, discharged and no longer to be outstanding.
9    Except as otherwise herein provided in this Section, such
10refunding Bonds shall in all other respects be issued pursuant
11to and subject to the terms and conditions of this Act and
12shall be secured by and payable from only the funds and sources
13which are provided under this Act.
14(Source: P.A. 102-16, eff. 6-17-21.)
 
15
Article 99.

 
16    Section 99-99. Effective date. This Act takes effect July
171, 2023.