99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0006

 

Introduced 1/15/2015, by Sen. Heather A. Steans

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-43
30 ILCS 105/6z-51
30 ILCS 122/15
30 ILCS 122/20

    Amends the State Finance Act. Provides that transfers from the Tobacco Settlement Recovery Fund to the Budget Stabilization Fund shall cease upon the first transfer of moneys into the Budget Stabilization Fund under the provisions of the amendatory Act. Amends the Budget Stabilization Act. Provides that the Department on Aging and the Departments of Central Management Services, Healthcare and Family Services, Human Services, and Revenue shall annually certify to the State Comptroller the amounts of insufficient appropriations and individual and corporate income tax overpayments that will not be refunded in the current fiscal year. Provides that the State Comptroller shall annually report to the Governor and the General Assembly the amounts certified by the Department on Aging and the Departments of Central Management Services, Healthcare and Family Services, Human Services, and Revenue. Provides for minimum funding levels to be maintained in the Budget Stabilization Fund, and for the transfer of specified amounts to the Budget Stabilization Fund, if minimum funding levels are not maintained. Provides that no further transfers to the Fund shall be made, if the balance of the Budget Stabilization fund equals 5% of the total general funds, and if the Comptroller ceases the order of further funds upon written notice to the specified parties. Provides that the General Assembly may authorize the transfer of additional amounts to the Budget Stabilization Fund after the Governor certifies a shortfall in the moneys otherwise available in the Fund. Provides that required transfers into the Pension Stabilization Fund, shall continue (currently, the transfers end in FY14) and increases the amount of those transfers by 1%. Effective immediately.


LRB099 04202 SXM 24224 b

 

 

A BILL FOR

 

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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Sections 6z-43 and 6z-51 as follows:
 
6    (30 ILCS 105/6z-43)
7    Sec. 6z-43. Tobacco Settlement Recovery Fund.
8    (a) There is created in the State Treasury a special fund
9to be known as the Tobacco Settlement Recovery Fund, which
10shall contain 3 accounts: (i) the General Account, (ii) the
11Tobacco Settlement Bond Proceeds Account and (iii) the Tobacco
12Settlement Residual Account. There shall be deposited into the
13several accounts of the Tobacco Settlement Recovery Fund and
14the Attorney General Tobacco Fund all monies paid to the State
15pursuant to (1) the Master Settlement Agreement entered in the
16case of People of the State of Illinois v. Philip Morris, et
17al. (Circuit Court of Cook County, No. 96-L13146) and (2) any
18settlement with or judgment against any tobacco product
19manufacturer other than one participating in the Master
20Settlement Agreement in satisfaction of any released claim as
21defined in the Master Settlement Agreement, as well as any
22other monies as provided by law. Moneys shall be deposited into
23the Tobacco Settlement Bond Proceeds Account and the Tobacco

 

 

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1Settlement Residual Account as provided by the terms of the
2Railsplitter Tobacco Settlement Authority Act, provided that
3an annual amount not less than $2,500,000, subject to
4appropriation, shall be deposited into the Attorney General
5Tobacco Fund for use only by the Attorney General's office. The
6scheduled $2,500,000 deposit into the Tobacco Settlement
7Residual Account for fiscal year 2011 should be transferred to
8the Attorney General Tobacco Fund in fiscal year 2012 as soon
9as this fund has been established. All other moneys available
10to be deposited into the Tobacco Settlement Recovery Fund shall
11be deposited into the General Account. An investment made from
12moneys credited to a specific account constitutes part of that
13account and such account shall be credited with all income from
14the investment of such moneys. The Treasurer may invest the
15moneys in the several accounts the Fund in the same manner, in
16the same types of investments, and subject to the same
17limitations provided in the Illinois Pension Code for the
18investment of pension funds other than those established under
19Article 3 or 4 of the Code. Notwithstanding the foregoing, to
20the extent necessary to preserve the tax-exempt status of any
21bonds issued pursuant to the Railsplitter Tobacco Settlement
22Authority Act, the interest on which is intended to be
23excludable from the gross income of the owners for federal
24income tax purposes, moneys on deposit in the Tobacco
25Settlement Bond Proceeds Account and the Tobacco Settlement
26Residual Account may be invested in obligations the interest

 

 

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1upon which is tax-exempt under the provisions of Section 103 of
2the Internal Revenue Code of 1986, as now or hereafter amended,
3or any successor code or provision.
4    (b) Moneys on deposit in the Tobacco Settlement Bond
5Proceeds Account and the Tobacco Settlement Residual Account
6may be expended, subject to appropriation, for the purposes
7authorized in subsection (g) of Section 3-6 Section 6(g) of the
8Railsplitter Tobacco Settlement Authority Act.
9    (c) As soon as may be practical after June 30, 2001 and
10until an initial transfer has been made to the Budget
11Stabilization Fund under subsection (b) of Section 15 of the
12Budget Stabilization Act as amended by this amendatory Act of
13the 99th General Assembly, upon notification from and at the
14direction of the Governor, the State Comptroller shall direct
15and the State Treasurer shall transfer the unencumbered balance
16in the Tobacco Settlement Recovery Fund as of June 30, 2001, as
17determined by the Governor, into the Budget Stabilization Fund.
18The Treasurer may invest the moneys in the Budget Stabilization
19Fund in the same manner, in the same types of investments, and
20subject to the same limitations provided in the Illinois
21Pension Code for the investment of pension funds other than
22those established under Article 3 or 4 of the Code.
23    (d) All federal financial participation moneys received
24pursuant to expenditures from the Fund shall be deposited into
25the General Account.
26(Source: P.A. 96-958, eff. 7-1-10; 97-72, eff. 7-1-11; revised

 

 

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112-1-14.)
 
2    (30 ILCS 105/6z-51)
3    Sec. 6z-51. Budget Stabilization Fund.
4    (a) The Budget Stabilization Fund, a special fund in the
5State Treasury, shall consist of moneys appropriated or
6transferred to that Fund, as provided in Section 6z-43 and as
7otherwise provided by law. All earnings on Budget Stabilization
8Fund investments shall be deposited into that Fund.
9    (b) Until an initial transfer has been made to the Budget
10Stabilization Fund under subsection (b) of Section 15 of the
11Budget Stabilization Act as amended by this amendatory Act of
12the 99th General Assembly, the The State Comptroller may direct
13the State Treasurer to transfer moneys from the Budget
14Stabilization Fund to the General Revenue Fund in order to meet
15cash flow deficits resulting from timing variations between
16disbursements and the receipt of funds within a fiscal year.
17Any moneys so borrowed in any fiscal year other than Fiscal
18Year 2011 shall be repaid by June 30 of the fiscal year in
19which they were borrowed. Any moneys so borrowed in Fiscal Year
202011 shall be repaid no later than July 15, 2011.
21(Source: P.A. 97-44, eff. 6-28-11.)
 
22    Section 10. The Budget Stabilization Act is amended by
23changing Sections 15 and 20 as follows:
 

 

 

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1    (30 ILCS 122/15)
2    Sec. 15. Transfers to Budget Stabilization Fund. In
3furtherance of the State's objective for the Budget
4Stabilization Fund to have resources representing 5% of the
5State's annual general funds revenues:
6    (a) On January 10, 2016 and each January 10 thereafter, the
7Department on Aging, the Department of Healthcare and Family
8Services, and the Department of Human Services shall certify to
9the Comptroller the amount of invoices that may be paid from
10appropriations in future fiscal years resulting from
11insufficient appropriations in the current fiscal year. In
12addition, the Department of Central Management Services shall
13certify the amount of invoices that may be paid from
14appropriations in future fiscal years due to insufficient
15resources in the Health Insurance Reserve Fund, and the
16Department of Revenue shall certify an estimate of the amount
17of individual and corporate income tax overpayments that will
18not be refunded before the close of the current fiscal year
19resulting from insufficient deposits into the Income Tax Refund
20Fund. On January 15, 2016 and each January 15 thereafter, the
21Comptroller shall issue a report to the Governor and the
22General Assembly detailing the total value of the amounts
23certified by the Department on Aging and the Departments of
24Central Management Services, Healthcare and Family Services,
25Human Services, and Revenue. The report shall also include the
26accounts payable with the Comptroller at the close of business

 

 

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1on December 31, 2015 and each December 31 thereafter. For each
2fiscal year when the General Assembly's appropriations and
3transfers or diversions as required by law from general funds
4do not exceed 99% of the estimated general funds revenues
5pursuant to subsection (a) of Section 10, the Comptroller shall
6transfer from the General Revenue Fund as provided by this
7Section a total amount equal to 0.5% of the estimated general
8funds revenues to the Budget Stabilization Fund.
9    (b) If the amount of accounts payable reported by the
10Comptroller is an amount less than $3,400,000,000, on the last
11day of each month of the next fiscal year or as soon thereafter
12as possible, the Comptroller shall order transferred and the
13Treasurer shall transfer from the General Revenue Fund to the
14Budget Stabilization Fund the lesser of (i) $400,000,000 or
15(ii) the amount necessary to maintain resources in the Budget
16Stabilization Fund that is equal to 5% of the total general
17funds revenues of the prior fiscal year, in equal monthly
18installments. Nothing in this Act prohibits the General
19Assembly from appropriating additional moneys into the Budget
20Stabilization Fund; however, transfers or appropriations shall
21only be made from the Budget Stabilization Fund under
22subsection (d) of this Section. For each fiscal year when the
23General Assembly's appropriations and transfers or diversions
24as required by law from general funds do not exceed 98% of the
25estimated general funds revenues pursuant to subsection (b) of
26Section 10, the Comptroller shall transfer from the General

 

 

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1Revenue Fund as provided by this Section a total amount equal
2to 1% of the estimated general funds revenues to the Budget
3Stabilization Fund.
4    (c) The Comptroller shall transfer 1/12 of the total amount
5to be transferred each fiscal year under this Section into the
6Budget Stabilization Fund on the first day of each month of
7that fiscal year or as soon thereafter as possible. The balance
8of the Budget Stabilization Fund shall not exceed 5% of the
9total of general funds revenues estimated for that fiscal year.
10If the balance of the Budget Stabilization Fund is equal to 5%
11of the total general funds revenues of the prior fiscal year,
12no further transfers shall be made to the Budget Stabilization
13Fund. However, if the amounts certified to the Comptroller that
14may be paid from future fiscal year resources by the Department
15on Aging and the Departments of Central Management Services,
16Healthcare and Family Services, Human Services, and Revenue
17exceed zero, the Comptroller shall order transferred and the
18Treasurer shall transfer from the General Revenue Fund to the
19Health Insurance Reserve Fund, the Health Care Provider Relief
20Fund, or the Income Tax Refund Fund an amount necessary to
21reduce those amounts to zero, but not to exceed a monthly
22aggregate of $33,333,333. except as provided by subsection (d)
23of this Section.
24    (d) Upon written notice from the Governor to the Clerk of
25the House of Representatives, the Secretary of the Senate, and
26the Secretary of State pursuant to Section 1.1 of the Short

 

 

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1Term Borrowing Act, the Comptroller may cease the order of any
2further transfers to the Budget Stabilization Fund and may
3order the transfer and the Treasurer shall transfer from the
4Budget Stabilization Fund to the General Revenue Fund an amount
5deemed necessary to maintain the State's accounts payable to an
6amount below $3,400,000,000. In the event that such written
7notice has been provided, the General Assembly may make
8transfers or appropriations from the Budget Stabilization Fund
9for the upcoming fiscal year as necessary to provide for the
10health, safety, and welfare of the people of the State of
11Illinois. If the balance of the Budget Stabilization Fund
12exceeds 5% of the total general funds revenues estimated for
13that fiscal year, the additional transfers are not required
14unless there are outstanding liabilities under Section 25 of
15the State Finance Act from prior fiscal years. If there are
16such outstanding Section 25 liabilities, then the Comptroller
17shall continue to transfer 1/12 of the total amount identified
18for transfer to the Budget Stabilization Fund on the first day
19of each month of that fiscal year or as soon thereafter as
20possible to be reserved for those Section 25 liabilities.
21Nothing in this Act prohibits the General Assembly from
22appropriating additional moneys into the Budget Stabilization
23Fund.
24    (e) On or before August 31 of each fiscal year, the amount
25determined to be transferred to the Budget Stabilization Fund
26shall be reconciled to actual general funds revenues for that

 

 

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1fiscal year. The final transfer for each fiscal year shall be
2adjusted so that the total amount transferred under this
3Section is equal to the amount percentage specified in
4subsection (a) or (b) of this Section, as applicable, based on
5actual general funds revenues calculated consistently with
6subsection (c) of Section 10 of this Act for each fiscal year.
7    (f) For the fiscal year beginning July 1, 2006 and for each
8fiscal year thereafter, the budget proposal to the General
9Assembly shall identify liabilities incurred in a prior fiscal
10year under Section 25 of the State Finance Act and the budget
11proposal shall provide funding as allowable pursuant to
12subsection (d) of this Section, if applicable.
13(Source: P.A. 93-660, eff. 7-1-04; 94-839, eff. 6-6-06.)
 
14    (30 ILCS 122/20)
15    Sec. 20. Pension Stabilization Fund.
16    (a) The Pension Stabilization Fund is hereby created as a
17special fund in the State treasury. Moneys in the fund shall be
18used for the sole purpose of making payments to the designated
19retirement systems as provided in Section 25.
20    (b) For each fiscal year through State fiscal year 2014,
21when the General Assembly's appropriations and transfers or
22diversions as required by law from general funds do not exceed
2399% of the estimated general funds revenues pursuant to
24subsection (a) of Section 10, the Comptroller shall transfer
25from the General Revenue Fund as provided by this Section a

 

 

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1total amount equal to 1.0% 0.5% of the estimated general funds
2revenues to the Pension Stabilization Fund.
3    (c) For each fiscal year through State fiscal year 2014,
4when the General Assembly's appropriations and transfers or
5diversions as required by law from general funds do not exceed
698% of the estimated general funds revenues pursuant to
7subsection (b) of Section 10, the Comptroller shall transfer
8from the General Revenue Fund as provided by this Section a
9total amount equal to 2.0% 1.0% of the estimated general funds
10revenues to the Pension Stabilization Fund.
11    (c-5) In addition to any other amounts required to be
12transferred under this Section, in State fiscal year 2016 and
13each fiscal year thereafter through State fiscal year 2045, or
14when each of the designated retirement systems, as defined in
15Section 25, has achieved 100% funding, whichever occurs first,
16the State Comptroller shall order transferred and the State
17Treasurer shall transfer from the General Revenue Fund to the
18Pension Stabilization Fund an amount equal to 10% of (1) the
19sum of the amounts certified by the designated retirement
20systems under subsection (a-5) of Section 2-134, subsection
21(a-10) of Section 14-135.08, subsection (a-10) of Section
2215-165, and subsection (a-10) of Section 16-158 of this Code
23for that fiscal year minus (2) the sum of (i) the transfer
24required under subsection (c-10) of this Section for that
25fiscal year and (ii) the sum of the required State
26contributions certified by the retirement systems under

 

 

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1subsection (a) of Section 2-134, subsection (a-5) of Section
214-135.08, subsection (a-5) of Section 15-165, and subsection
3(a-5) of Section 16-158 of this Code for that fiscal year. The
4transferred amount is intended to represent one-tenth of the
5annual savings to the State resulting from the enactment of
6this amendatory Act of the 98th General Assembly.
7    (c-10) In State fiscal year 2019, the State Comptroller
8shall order transferred and the State Treasurer shall transfer
9$364,000,000 from the General Revenue Fund to the Pension
10Stabilization Fund. In State fiscal year 2020 and each fiscal
11year thereafter until terminated under subsection (c-15), the
12State Comptroller shall order transferred and the State
13Treasurer shall transfer $1,000,000,000 from the General
14Revenue Fund to the Pension Stabilization Fund.
15    (c-15) The transfers made beginning in State fiscal year
162020 pursuant to subsection (c-10) of this Section shall
17terminate at the end of State fiscal year 2045 or when each of
18the designated retirement systems, as defined in Section 25,
19has achieved 100% funding, whichever occurs first.
20    (d) The Comptroller shall transfer 1/12 of the total amount
21to be transferred each fiscal year under this Section into the
22Pension Stabilization Fund on the first day of each month of
23that fiscal year or as soon thereafter as possible; except that
24the final transfer of the fiscal year shall be made as soon as
25practical after the August 31 following the end of the fiscal
26year.

 

 

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1    Before Until State fiscal year 2015, before the final
2transfer for a fiscal year is made, the Comptroller shall
3reconcile the estimated general funds revenues used in
4calculating the other transfers under this Section for that
5fiscal year with the actual general funds revenues for that
6fiscal year. The final transfer for the fiscal year shall be
7adjusted so that the total amount transferred under this
8Section for that fiscal year is equal to the percentage
9specified in subsection (b) or (c) of this Section, whichever
10is applicable, of the actual general funds revenues for that
11fiscal year. The actual general funds revenues for the fiscal
12year shall be calculated in a manner consistent with subsection
13(c) of Section 10 of this Act.
14(Source: P.A. 98-599, eff. 6-1-14.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    See Index