093_SB1601ham001











                                     LRB093 02811 MKM 16983 a

 1                    AMENDMENT TO SENATE BILL 1601

 2        AMENDMENT NO.     .  Amend Senate Bill 1601  on  page  1,
 3    below line 23, by inserting the following:

 4        "Section 3.  The State Finance Act is amended by changing
 5    Section 6z-45 as follows:

 6        (30 ILCS 105/6z-45)
 7        Sec. 6z-45.  The School Infrastructure Fund.
 8        (a)  The  School  Infrastructure  Fund  is  created  as a
 9    special fund in the State Treasury.
10        In addition to any  other  deposits  authorized  by  law,
11    beginning January 1, 2000, on the first day of each month, or
12    as  soon  thereafter as may be practical, the State Treasurer
13    and State Comptroller shall transfer the  sum  of  $5,000,000
14    from  the  General  Revenue Fund to the School Infrastructure
15    Fund; provided, however, that no such transfers shall be made
16    from July 1, 2001 through June 30, 2003.
17        (b)  Subject to the transfer provisions set forth  below,
18    money  in  the  School Infrastructure Fund shall, if and when
19    the State of Illinois incurs any bonded indebtedness for  the
20    construction   of   school   improvements  under  the  School
21    Construction Law, be set aside and used for  the  purpose  of
22    paying and discharging annually the principal and interest on
 
                            -2-      LRB093 02811 MKM 16983 a
 1    that  bonded  indebtedness  then  due and payable, and for no
 2    other purpose.
 3        In addition to other transfers to the General  Obligation
 4    Bond Retirement and Interest Fund made pursuant to Section 15
 5    of  the  General  Obligation  Bond Act, upon each delivery of
 6    bonds issued for construction of  school  improvements  under
 7    the  School  Construction  Law,  the  State Comptroller shall
 8    compute and certify to the State Treasurer the  total  amount
 9    of  principal  of,  interest on, and premium, if any, on such
10    bonds during the then  current  and  each  succeeding  fiscal
11    year.   With respect to the interest payable on variable rate
12    bonds, such certifications shall be calculated at the maximum
13    rate of interest that may be payable during the fiscal  year,
14    after  taking  into  account  any  credits  permitted  in the
15    related indenture or other instrument against the  amount  of
16    such interest required to be appropriated for that period.
17        On  or  before  the  last  day  of  each month, the State
18    Treasurer and  State  Comptroller  shall  transfer  from  the
19    School  Infrastructure  Fund  to  the General Obligation Bond
20    Retirement and Interest Fund an amount sufficient to pay  the
21    aggregate  of  the principal of, interest on, and premium, if
22    any, on the bonds payable on their next payment date, divided
23    by the number of monthly transfers occurring between the last
24    previous payment date (or the delivery  date  if  no  payment
25    date has yet occurred) and the next succeeding payment  date.
26    Interest  payable  on variable rate bonds shall be calculated
27    at the maximum rate of interest that may be payable  for  the
28    relevant  period,  after  taking  into  account  any  credits
29    permitted  in  the  related  indenture  or  other  instrument
30    against   the   amount   of  such  interest  required  to  be
31    appropriated for that period.  Interest for which moneys have
32    already been deposited into the capitalized interest  account
33    within  the  General  Obligation Bond Retirement and Interest
34    Fund shall not be included in the calculation of the  amounts
 
                            -3-      LRB093 02811 MKM 16983 a
 1    to be transferred under this subsection.
 2        (c)  The  surplus,  if  any, in the School Infrastructure
 3    Fund after the payment of  principal  and  interest  on  that
 4    bonded  indebtedness  then  annually  due  shall,  subject to
 5    appropriation, be used as follows:
 6        First - to make  3  payments  to  the  School  Technology
 7    Revolving Loan Fund as follows:
 8             Transfer of $30,000,000 in fiscal year 1999;
 9             Transfer of $20,000,000 in fiscal year 2000; and
10             Transfer of $10,000,000 in fiscal year 2001.
11        Second  -  to  pay  the  expenses  of  the State Board of
12    Education and the Capital Development Board in  administering
13    programs   under  the  School  Construction  Law,  the  total
14    expenses not to exceed $1,200,000 in any fiscal year.
15        Third - to pay any amounts  due  for  grants  for  school
16    construction  projects  and  debt  service  under  the School
17    Construction Law.
18        Fourth - to pay any amounts due  for  grants  for  school
19    maintenance projects under the School Construction Law.
20    (Source:  P.A.  91-38,  eff.  6-15-99;  91-711,  eff. 7-1-00;
21    92-11, eff. 6-11-01; 92-600, eff. 6-28-02.)"; and

22    on page 1,  by  replacing  all  of  line  25  with  "changing
23    Sections 7, 9, 14, and 15 as follows:"; and

24    on page 4, below line 19, by inserting the following:

25        "(30 ILCS 330/9) (from Ch. 127, par. 659)
26        Sec.  9.  Conditions  for  Issuance  and  Sale of Bonds -
27    Requirements for Bonds.
28        (a)  Bonds shall be issued and sold from time to time, in
29    one or more series, in such amounts and at such prices as may
30    be directed by  the  Governor,  upon  recommendation  by  the
31    Director  of the Bureau of the Budget. Bonds shall be in such
32    form (either coupon,  registered  or  book  entry),  in  such
 
                            -4-      LRB093 02811 MKM 16983 a
 1    denominations,  payable  within  30  years  from  their date,
 2    subject to such terms of redemption with or without  premium,
 3    bear  interest  payable  at  such  times and at such fixed or
 4    variable rate or rates, and be dated as shall  be  fixed  and
 5    determined by the Director of the Bureau of the Budget in the
 6    order  authorizing  the  issuance  and  sale of any series of
 7    Bonds, which order shall be approved by the Governor  and  is
 8    herein  called  a  "Bond  Sale Order"; provided however, that
 9    interest payable at fixed or variable rates shall not  exceed
10    that  permitted  in  the  Bond  Authorization  Act, as now or
11    hereafter amended.  Said Bonds shall be payable at such place
12    or places, within or without the State of Illinois,  and  may
13    be  made  registrable  as  to  either principal or as to both
14    principal and interest, as shall be  specified  in  the  Bond
15    Sale Order.  Bonds may be callable or subject to purchase and
16    retirement  or tender and remarketing as fixed and determined
17    in the Bond Sale Order.
18        In the case of any series of Bonds bearing interest at  a
19    variable  interest  rate  ("Variable Rate Bonds"), in lieu of
20    determining the  rate  or  rates  at  which  such  series  of
21    Variable  Rate  Bonds  shall  bear  interest and the price or
22    prices at which such Variable Rate Bonds shall  be  initially
23    sold  or  remarketed (in the event of purchase and subsequent
24    resale), the Bond Sale Order may provide that  such  interest
25    rates  and  prices  may  vary  from time to time depending on
26    criteria established in such Bond Sale Order, which  criteria
27    may  include,  without  limitation,  references to indices or
28    variations in interest rates as may, in  the  judgment  of  a
29    remarketing  agent, be necessary to cause Variable Rate Bonds
30    of such series to be remarketable from  time  to  time  at  a
31    price  equal  to  their principal amount, and may provide for
32    appointment of a bank, trust  company,  investment  bank,  or
33    other  financial institution to serve as remarketing agent in
34    that connection.   The  Bond  Sale  Order  may  provide  that
 
                            -5-      LRB093 02811 MKM 16983 a
 1    alternative  interest  rates  or  provisions for establishing
 2    alternative  interest  rates,  different  security  or  claim
 3    priorities, or different call or amortization provisions will
 4    apply during such times as Variable Rate Bonds of any  series
 5    are   held   by   a  person  providing  credit  or  liquidity
 6    enhancement arrangements for  such  Bonds  as  authorized  in
 7    subsection (b) of this Section.  The Bond Sale Order may also
 8    provide  for  such  variable interest rates to be established
 9    pursuant to a process generally  known  as  an  auction  rate
10    process  and  may  provide  for  appointment  of  one or more
11    financial  institutions  to  serve  as  auction  agents   and
12    broker-dealers  in  connection with the establishment of such
13    interest rates and the sale and remarketing of such Bonds.
14        (b)  In connection with the issuance  of  any  series  of
15    Bonds,  the  State  may  enter  into  arrangements to provide
16    additional security and liquidity for such Bonds,  including,
17    without  limitation,  bond  or  interest  rate  insurance  or
18    letters  of credit, lines of credit, bond purchase contracts,
19    or other arrangements whereby funds  are  made  available  to
20    retire  or  purchase  Bonds,  thereby assuring the ability of
21    owners of the Bonds to sell or redeem their Bonds.  The State
22    may enter into contracts and may agree to pay fees to persons
23    providing such arrangements,  but  only  under  circumstances
24    where the Director of the Bureau of the Budget certifies that
25    he or she reasonably expects the total interest paid or to be
26    paid   on   the   Bonds,  together  with  the  fees  for  the
27    arrangements (being treated as if interest), would not, taken
28    together, cause the Bonds to  bear  interest,  calculated  to
29    their  stated  maturity, at a rate in excess of the rate that
30    the Bonds would bear in the absence of such arrangements.
31        The  State  may,  with  respect  to   Bonds   issued   or
32    anticipated  to  be  issued,  participate  in  and enter into
33    arrangements with respect  to  interest  rate  protection  or
34    exchange   agreements,   guarantees,   or  financial  futures
 
                            -6-      LRB093 02811 MKM 16983 a
 1    contracts for the purpose of limiting or restricting interest
 2    rate risk.  The arrangements may be executed and delivered by
 3    the Director of the Bureau of the Budget  on  behalf  of  the
 4    State.   Net  payments for such arrangements shall constitute
 5    interest on the Bonds and shall  be  paid  from  the  General
 6    Obligation  Bond  Retirement and Interest Fund.  The Director
 7    of the Bureau of the Budget shall at least  annually  certify
 8    to the Governor and the State Comptroller his or her estimate
 9    of  the  amounts  of  such net payments to be included in the
10    calculation of interest required to be paid by the State.
11        (c)  Prior to the issuance of  any  Variable  Rate  Bonds
12    pursuant to subsection (a), the Director of the Bureau of the
13    Budget  shall  adopt  an interest rate risk management policy
14    providing that  the  amount  of  the  State's  variable  rate
15    exposure  with  respect  to Bonds shall not exceed 20%.  This
16    policy shall remain in effect while any Bonds are outstanding
17    and the issuance of Bonds shall be subject to  the  terms  of
18    such  policy.  The  terms  of this policy may be amended from
19    time to time by the Director of the Bureau of the Budget  but
20    in  no event shall any amendment cause the permitted level of
21    the State's variable rate exposure with respect to  Bonds  to
22    exceed 20%.
23    (Source:  P.A.  91-39,  eff.  6-15-99;  91-357, eff. 7-29-99;
24    92-16, eff. 6-28-01.)

25        (30 ILCS 330/14) (from Ch. 127, par. 664)
26        Sec. 14.  Repayment.
27        (a)  To provide for the manner of repayment of Bonds, the
28    Governor shall include an appropriation in each annual  State
29    Budget  of  monies  in  such amount as shall be necessary and
30    sufficient, for the period covered by such budget, to pay the
31    interest, as it shall accrue, on all Bonds issued under  this
32    Act,  to  pay  and  discharge  the principal of such Bonds as
33    shall, by their terms, fall due during such  period,  and  to
 
                            -7-      LRB093 02811 MKM 16983 a
 1    pay  a  premium, if any, on Bonds to be redeemed prior to the
 2    maturity date.  Amounts included in such  appropriations  for
 3    the  payment  of interest on variable rate bonds shall be the
 4    maximum amounts of interest  that  may  be  payable  for  the
 5    period  covered  by the budget, after taking into account any
 6    credits  permitted  in  the  related   indenture   or   other
 7    instrument against the amount of such interest required to be
 8    appropriated  for  such  period.   Amounts  included  in such
 9    appropriations for the payment of interest shall include  the
10    amounts certified by the Director of the Bureau of the Budget
11    under subsection (b) of Section 9 of this Act.
12        (b)  A  separate  fund  in  the State Treasury called the
13    "General Obligation Bond Retirement  and  Interest  Fund"  is
14    hereby created.
15        (c)  The    General    Assembly   shall   annually   make
16    appropriations to pay the  principal  of,  interest  on,  and
17    premium,  if  any,  on  Bonds  sold  under  this Act from the
18    General  Obligation  Bond  Retirement  and   Interest   Fund.
19    Amounts  included  in  such appropriations for the payment of
20    interest on variable rate bonds shall be the maximum  amounts
21    of interest that may be payable during the fiscal year, after
22    taking  into  account  any  credits  permitted in the related
23    indenture or other instrument  against  the  amount  of  such
24    interest   required  to  be  appropriated  for  such  period.
25    Amounts included in such appropriations for  the  payment  of
26    interest  shall include the amounts certified by the Director
27    of the Bureau of the Budget under subsection (b) of Section 9
28    of this Act.
29        If for any reason there are insufficient funds in  either
30    the  General  Revenue Fund or the Road Fund to make transfers
31    to the General Obligation Bond Retirement and  Interest  Fund
32    as  required  by Section 15 of this Act, or if for any reason
33    the General Assembly fails to make appropriations  sufficient
34    to pay the principal of, interest on, and premium, if any, on
 
                            -8-      LRB093 02811 MKM 16983 a
 1    the  Bonds, as the same by their terms shall become due, this
 2    Act  shall   constitute   an   irrevocable   and   continuing
 3    appropriation  of all amounts necessary for that purpose, and
 4    the irrevocable and continuing authority for and direction to
 5    the State Treasurer and the Comptroller to make the necessary
 6    transfers,  as  directed  by  the  Governor,   out   of   and
 7    disbursements from the revenues and funds of the State.
 8        (d)  If,  because  of  insufficient  funds  in either the
 9    General Revenue Fund or  the  Road  Fund,  monies  have  been
10    transferred  to  the  General  Obligation Bond Retirement and
11    Interest Fund, as required by subsection (c) of this Section,
12    this Act shall  constitute  the  irrevocable  and  continuing
13    authority  for  and  direction  to  the  State  Treasurer and
14    Comptroller to reimburse these funds of the  State  from  the
15    General  Revenue  Fund  or  the Road Fund, as appropriate, by
16    transferring, at such times and in such amounts, as  directed
17    by  the  Governor,  an  amount  to  these funds equal to that
18    transferred from them.
19    (Source: P.A. 83-1490.)

20        (30 ILCS 330/15) (from Ch. 127, par. 665)
21        Sec.  15.  Computation   of   Principal   and   Interest;
22    transfers.
23        (a)  Upon  each delivery of Bonds authorized to be issued
24    under this Act, the Comptroller shall compute and certify  to
25    the  Treasurer the total amount of principal of, interest on,
26    and premium, if any, on Bonds issued that will be payable  in
27    order  to  retire  such Bonds and the amount of principal of,
28    interest on and premium, if any, on such Bonds that  will  be
29    payable  on  each payment date according to the tenor of such
30    Bonds during the then  current  and  each  succeeding  fiscal
31    year.   With respect to the interest payable on variable rate
32    bonds, such certifications shall be calculated at the maximum
33    rate of interest that may be payable during the fiscal  year,
 
                            -9-      LRB093 02811 MKM 16983 a
 1    after  taking  into  account  any  credits  permitted  in the
 2    related indenture or other instrument against the  amount  of
 3    such  interest  required  to  be appropriated for such period
 4    pursuant to subsection (c) of Section 14 of this  Act.   With
 5    respect  to  the  interest payable, such certifications shall
 6    include the amounts certified by the Director of  the  Bureau
 7    of the Budget under subsection (b) of Section 9 of this Act.
 8        On  or  before  the  last  day  of  each  month the State
 9    Treasurer and Comptroller shall transfer from  (1)  the  Road
10    Fund  with  respect  to  Bonds  issued under paragraph (a) of
11    Section 4 of this Act or Bonds  issued  for  the  purpose  of
12    refunding  such bonds, and from (2) the General Revenue Fund,
13    with respect to all other Bonds issued under this Act, to the
14    General Obligation  Bond  Retirement  and  Interest  Fund  an
15    amount  sufficient  to pay the aggregate of the principal of,
16    interest on, and premium, if any, on Bonds payable, by  their
17    terms  on the next payment date divided by the number of full
18    calendar months between the date of such Bonds and the  first
19    such  payment  date, and thereafter, divided by the number of
20    months between each succeeding payment date after the  first.
21    Such computations and transfers shall be made for each series
22    of  Bonds issued and delivered.  Interest payable on variable
23    rate bonds  shall  be  calculated  at  the  maximum  rate  of
24    interest  that  may be payable for the relevant period, after
25    taking into account any  credits  permitted  in  the  related
26    indenture  or  other  instrument  against  the amount of such
27    interest required to be appropriated for such period pursuant
28    to subsection (c) of Section 14 of this Act.  Computations of
29    interest shall include the amounts certified by the  Director
30    of the Bureau of the Budget under subsection (b) of Section 9
31    of  this  Act.   Interest  for which moneys have already been
32    deposited into the capitalized interest  account  within  the
33    General  Obligation  Bond  Retirement and Interest Fund shall
34    not be included in the  calculation  of  the  amounts  to  be
 
                            -10-     LRB093 02811 MKM 16983 a
 1    transferred under this subsection.
 2        The  transfer  of monies herein and above directed is not
 3    required if monies in the General Obligation Bond  Retirement
 4    and  Interest  Fund  are more than the amount otherwise to be
 5    transferred as herein above provided, and if the Governor  or
 6    his  authorized  representative  notifies the State Treasurer
 7    and Comptroller of such fact in writing.
 8        (b)  After the effective date of this  Act,  the  balance
 9    of,  and  monies  directed  to  be  included  in  the Capital
10    Development Bond Retirement and Interest Fund, Anti-Pollution
11    Bond  Retirement  and  Interest  Fund,  Transportation  Bond,
12    Series A Retirement and Interest Fund,  Transportation  Bond,
13    Series  B  Retirement and Interest Fund, and Coal Development
14    Bond Retirement and Interest Fund shall be transferred to and
15    deposited in  the  General  Obligation  Bond  Retirement  and
16    Interest  Fund.  This Fund shall be used to make debt service
17    payments on the State's general obligation  Bonds  heretofore
18    issued  which  are now outstanding and payable from the Funds
19    herein listed as well as on Bonds issued under this Act.
20        (c)  The unused portion of federal funds received  for  a
21    capital  facilities  project,  as  authorized by Section 3 of
22    this Act, for which monies from the Capital Development  Fund
23    have  been expended shall be deposited upon completion of the
24    project  in  the  General  Obligation  Bond  Retirement   and
25    Interest  Fund.  Any  federal funds received as reimbursement
26    for  the  completed  construction  of  a  capital  facilities
27    project, as authorized by Section 3 of this  Act,  for  which
28    monies  from  the Capital Development Fund have been expended
29    shall be deposited in the General Obligation Bond  Retirement
30    and Interest Fund.
31    (Source: P.A. 93-2, eff. 4-7-03.)"; and

32    on page 8, below line 6, by inserting the following:

33        "Section  99. Effective date.  This Act takes effect upon
 
                            -11-     LRB093 02811 MKM 16983 a
 1    becoming law.".