Illinois General Assembly - Full Text of HB2428
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Full Text of HB2428  96th General Assembly

HB2428sam002 96TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 5/7/2010

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2428

2     AMENDMENT NO. ______. Amend House Bill 2428, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
 
5
"ARTICLE 1. EMERGENCY BUDGET ACT OF FISCAL YEAR 2011

 
6     Section 1-1. Short title. This Act may be cited as the
7 Emergency Budget Act of Fiscal Year 2011.
 
8     Section 1-5. Legislative intent and purpose. The General
9 Assembly hereby finds and declares that the State is confronted
10 with an unprecedented fiscal crisis. It is the purpose of this
11 Act to authorize changes in State programs that are necessary
12 to implement the State fiscal year 2011 budget. This Act is to
13 be liberally construed and interpreted in a manner that allows
14 the State to address the fiscal crisis for the State fiscal
15 year 2011.
 

 

 

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1
ARTICLE 3. RAILSPLITTER TOBACCO SETTLEMENT AUTHORITY ACT

 
2     Section 3-1. Short title. This Act may be cited as the
3 Railsplitter Tobacco Settlement Authority Act.
 
4     Section 3-2. Definitions. In this Act words or terms shall
5 have the following meanings unless the context or usage clearly
6 indicates that another meaning is intended.
7     (a) "Authority" means the Railsplitter Tobacco Settlement
8 Authority created and established pursuant to Section 3-4 of
9 this Act.
10     (b) "Authorized officer" means any of the members of the
11 Authority identified and described in Section 3-4 of this Act.
12     (c) "Bond" means any instrument evidencing the obligation
13 to pay money authorized or issued by or on behalf of the
14 Authority pursuant to the authorization granted by this Act,
15 including without limitation, bonds, notes, or certificates.
16     (d) "Bondholder" means, in the case of a bond issued in
17 registered form, the registered owner of the bond and
18 otherwise, the owner of the bond.
19     (e) "Budget Director" means the Director of the Governor's
20 Office of Management and Budget.
21     (f) "Consent Decree" means the Consent Decree and Final
22 Judgment of the Circuit Court of Cook County, Illinois, dated
23 December 8, 1998, as the same has been and may be corrected,

 

 

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1 amended or modified, in the action entitled People of the State
2 of Illinois v. Philip Morris Incorporated, et al. (No. 96 L
3 13146).
4     (g) "Master Settlement Agreement" means the Master
5 Settlement Agreement, dated November 23, 1998, among the
6 attorneys general of 46 states, including the State of
7 Illinois, the District of Columbia, the Commonwealth of Puerto
8 Rico, Guam, the United States Virgin Islands, American Samoa
9 and the Territory of the Northern Mariana Islands, on the one
10 hand, and certain tobacco manufacturers, on the other hand, and
11 the subject of the Consent Decree.
12     (h) "Master Settlement Escrow Agent" means the escrow agent
13 under the Master Settlement Agreement.
14     (i) "Net proceeds of bonds" means the gross proceeds of the
15 sale of bonds issued under Section 3-6 of this Act, less any
16 amounts applied or to be applied to pay transaction and
17 administrative expenses, including underwriting discount, and
18 to fund any reserves deemed necessary or appropriate by the
19 Authority, but does not include any investment earnings
20 realized thereon.
21     (j) "Participating manufacturer" means a tobacco product
22 manufacturer that is or becomes a signatory to the Master
23 Settlement Agreement.
24     (k) "Pledged tobacco revenues" means the State's tobacco
25 settlement revenues sold to the Authority pursuant to the sale
26 agreement and pledged by the Authority for the payment of bonds

 

 

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1 and any related bond facility.
2     (l) "Qualifying statute" has the meaning given that term in
3 the Master Settlement Agreement, constituting the Tobacco
4 Product Manufacturers' Escrow Act.
5     (m) "Related bond facility" means any interest rate
6 exchange or similar agreement or any bond insurance policy,
7 letter of credit or other credit enhancement facility,
8 liquidity facility, guaranteed investment or reinvestment
9 agreement, or other similar agreement, arrangement or
10 contract.
11     (n) "Residual interest in tobacco settlement revenues"
12 means any tobacco settlement revenues determined as moneys are
13 received, to be not required for the identified period in which
14 revenues are received, to pay principal or interest on bonds or
15 administrative or transaction expenses of the Authority or to
16 fund reserves or other requirements relating to bonds issued or
17 related bond facilities made under this Act.
18     (o) "Sale agreement" means any agreement authorized
19 pursuant to this Act in which the State provides for the sale
20 of all or a portion of the tobacco settlement revenues to the
21 Authority.
22     (p) "State" means the State of Illinois.
23     (q) "State Finance Act" means the State Finance Act of the
24 State, as amended (30 ILCS 105/1 et seq.).
25     (r) "Tobacco settlement bond proceeds account" means the
26 Account by that name within the Tobacco Settlement Recovery

 

 

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1 Fund established under Section 6z-43(a) of the State Finance
2 Act.
3     (s) "Tobacco Settlement Residual Account" means the
4 Account by that name within the Tobacco Settlement Recovery
5 Fund established under Section 6z-43(a) of the State Finance
6 Act.
7     (t) "Tobacco settlement revenues" means all tobacco
8 settlement payments received by the State on and after the
9 effective date of this Act and required to be made, pursuant to
10 the terms of the Master Settlement Agreement, by participating
11 manufacturers and the State's rights to receive the tobacco
12 settlement payments on and after the effective date of this
13 Act, exclusive of any payments made with respect to liability
14 to make those payments for calendar years completed before the
15 effective date of this Act.
 
16     Section 3-3. Transfer and sale of State's right to tobacco
17 settlement revenues. During fiscal years 2010 and 2011, the
18 State may sell, convey, or otherwise transfer to the Authority
19 the tobacco settlement revenues in exchange for the net
20 proceeds of bonds and a right to the residual interest in
21 tobacco settlement revenues. Unless otherwise directed by
22 statute, the net proceeds of bonds shall be deposited in the
23 Tobacco Settlement Bond Proceeds Account, and the residual
24 interest in tobacco settlement revenues received by the State
25 from time to time shall be deposited in the Tobacco Settlement

 

 

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1 Residual Account, in each case to be applied for the purposes
2 and in the manner described in this Act and in Section 6z-43 of
3 the State Finance Act.
4     Any sale, conveyance, or other transfer authorized by this
5 Section shall be evidenced by an instrument or agreement in
6 writing signed on behalf of the State by the Governor. A
7 certified copy of the instrument or agreement shall be filed
8 with the Governor, Comptroller, Treasurer, Budget Director,
9 Speaker and Minority Leader of the House of Representatives,
10 President and Minority Leader of the Senate, and the Commission
11 on Government Forecasting and Accountability promptly upon
12 execution and delivery thereof. The instrument or agreement may
13 include an irrevocable direction to the Master Settlement
14 Escrow Agent to pay all or a specified portion of the tobacco
15 settlement revenues directly to or upon the order of the
16 Authority, or to any escrow agent or any trustee under an
17 indenture or other agreement securing any bonds issued or
18 related bond facilities made under this Act. Upon execution and
19 delivery of the sale agreement as provided in this Act, the
20 sale, conveyance, or other transfer of the right to receive the
21 Tobacco Settlement Revenues, shall, for all purposes, be a true
22 sale and absolute conveyance of all right, title, and interest
23 therein and not as a pledge or other security interest for any
24 borrowing, valid, binding, and enforceable in accordance with
25 the terms thereof and such instrument or agreements and any
26 related instrument, agreement, or other arrangement, including

 

 

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1 any pledge, grant of security interest, or other encumbrance
2 made by Authority to secure any Bonds issued by the Authority,
3 and shall not be subject to disavowal, disaffirmance,
4 cancellation, or avoidance by reason of insolvency of any
5 party, lack of consideration, or any other fact, occurrence, or
6 rule of law. On and after the effective date of the sale of any
7 portion (including all) of the tobacco settlement revenues, the
8 State shall have no right, title or interest in or to the
9 portion of the tobacco settlement revenues sold, and the
10 portion of the tobacco settlement revenues so sold shall be the
11 property of the Authority, and shall be received, held and
12 disbursed by the Authority in a trust fund outside the State
13 treasury. Any portions of the tobacco settlement revenues sold
14 and held in trust shall be invested in accordance with the
15 Public Funds Investment Act.
16     The State may not transfer any right to those amounts
17 received by the State which were deposited into the Disputed
18 Payments Account or withheld in accordance with Section
19 XI(f)(2) of the Master Settlement Agreement prior to the
20 closing of any Bonds issued pursuant to this Act.
21     The procedures and requirements set forth in this Section
22 shall be the sole procedures and requirements applicable to the
23 sale of the tobacco settlement revenues.
 
24     Section 3-4. Establishment and Powers of Authority. The
25 Authority is hereby established as a special purpose

 

 

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1 corporation which shall be body corporate and politic of, but
2 having a legal existence independent and separate from, the
3 State and, accordingly, the assets, liabilities, and funds of
4 the Authority shall be neither consolidated nor commingled with
5 those of the State treasury. The Authority and its corporate
6 existence shall continue until 6 months after all its
7 liabilities have been met or otherwise discharged. Upon the
8 termination of the existence of the Authority, all of its
9 rights and property shall pass to and be vested in the State.
10 The Authority shall be established for the express limited
11 public purposes set forth in this Act, and no part of the net
12 earnings of the Authority shall inure to any private
13 individual.
14     The Authority shall be governed by a 3-member board
15 consisting of the Budget Director and two other members
16 appointed by the Governor. The powers of the Authority shall be
17 subject to the terms, conditions, and limitations contained
18 within this Act, and any applicable covenants or agreements of
19 the Authority in any indenture or other agreement relating to
20 any then outstanding bonds or related bond facilities. The
21 Authority may enter into contracts regarding any matter
22 connected with any corporate purpose within the objects and
23 purposes of this Act. The members of the Authority and the
24 Chief Financial Officer of the Authority shall receive no
25 salary or other compensation, either direct or indirect, for
26 serving as members of the Authority, other than reimbursement

 

 

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1 for actual and necessary expenses incurred in the performance
2 of such person's duties. The Authority may elect one of its
3 members as chairman, who shall sign instruments or agreements
4 authorized by this Act on behalf of the Authority. The
5 Authority may also appoint a Chief Financial Officer of the
6 Authority who may or may not be a member of the Authority in
7 order to provide financial analysis and advice regarding any
8 transaction of the Authority. Notwithstanding the foregoing,
9 the Authority shall not be authorized to make any covenant,
10 pledge, promise or agreement purporting to bind the State with
11 respect to Tobacco Settlement Revenues, except as otherwise
12 specifically authorized by this Act.
13     The Authority may not file a voluntary petition under or be
14 or become a debtor or bankrupt under the federal bankruptcy
15 code or any other federal or State bankruptcy, insolvency, or
16 moratorium law or statute as may, from time to time, be in
17 effect and neither any public officer nor any organization,
18 entity, or other person shall authorize the Authority to be or
19 become a debtor or bankrupt under the federal bankruptcy code
20 or any other federal or State bankruptcy, insolvency, or
21 moratorium law or statute, as may, from time to time be in
22 effect.
23     The Authority may not guarantee the debts of another.
 
24     Section 3-5. Certain powers of the Authority. The Authority
25 shall have the power to:

 

 

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1     (1) sue and be sued;
2     (2) have a seal and alter the same at pleasure;
3     (3) make and alter by-laws for its organization and
4 internal management and make rules and regulations governing
5 the use of its property and facilities;
6     (4) appoint by and with the consent of the Attorney
7 General, assistant attorneys for such Authority; those
8 assistant attorneys shall be under the control, direction, and
9 supervision of the Attorney General and shall serve at his or
10 her pleasure;
11     (5) retain special counsel, subject to the approval of the
12 Attorney General, as needed from time to time, and fix their
13 compensation, provided however, such special counsel shall be
14 subject to the control, direction and supervision of the
15 Attorney General and shall serve at his or her pleasure;
16     (6) make and execute contracts and all other instruments
17 necessary or convenient for the exercise of its powers and
18 functions under this Section and to commence any action to
19 protect or enforce any right conferred upon it by any law,
20 contract, or other agreement, provided that any underwriter,
21 financial advisor, bond counsel, or other professional
22 providing services to the Authority may be selected pursuant to
23 solicitations issued and completed by the Governor's Office of
24 Management and Budget for those services;
25     (7) appoint officers and agents, prescribe their duties and
26 qualifications, fix their compensation and engage the services

 

 

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1 of private consultants and counsel on a contract basis for
2 rendering professional and technical assistance and advice,
3 provided that this shall not be construed to limit the
4 authority of the Attorney General provided in Section 4 of the
5 Attorney General Act;
6     (8) pay its operating expenses and its financing costs,
7 including its reasonable costs of issuance and sale and those
8 of the Attorney General, if any, in a total amount not greater
9 than 1% of the principal amount of the proceeds of the bond
10 sale;
11     (9) borrow money in its name and issue negotiable bonds and
12 provide for the rights of the holders thereof as otherwise
13 provided in this Act;
14     (10) procure insurance against any loss in connection with
15 its activities, properties, and assets in such amount and from
16 such insurers as it deems desirable;
17     (11) invest any funds or other moneys under its custody and
18 control in investment securities or under any related bond
19 facility;
20     (12) as security for the payment of the principal of and
21 interest on any Bonds issued by it pursuant to this Act and any
22 agreement made in connection therewith and for its obligations
23 under any Related Bond Facility, pledge all or any part of the
24 tobacco settlement revenues;
25     (13) do any and all things necessary or convenient to carry
26 out its purposes and exercise the powers expressly given and

 

 

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1 granted in this Section.
 
2     Section 3-6. Bonds of the Authority.
3     (a) The Authority shall have power and is hereby authorized
4 to issue bonds, in an amount no greater than $1,750,000,000, to
5 provide sufficient funds for the purchase of all or a portion
6 of the tobacco settlement revenues pursuant to Section 3-3 of
7 this Act and the payment or provision for financing costs.
8     The issuance of bonds shall be authorized by a resolution
9 of the Authority, adopted by a majority of the members of the
10 Authority without further authorization or approval. The issue
11 of the bonds of the Authority shall be special revenue
12 obligations payable from and secured by a pledge of the pledged
13 tobacco revenues, those proceeds of such Bonds deposited in a
14 reserve fund for the benefit of Bondholders, and earnings on
15 funds of the Authority, upon such terms and conditions as
16 specified by the Authority in the resolution under which the
17 Bonds are issued or in a related trust indenture.
18     The Authority shall have the power and is hereby authorized
19 from time to time to issue bonds, whenever it deems refunding
20 expedient, to refund any outstanding bonds by the issuance of
21 new bonds, provided that the refunding debt matures within the
22 term of the bonds to be refunded. The refunding bonds may be
23 exchanged for the bonds to be refunded or sold and the proceeds
24 applied to the purchase, redemption, or payment of such bonds.
25     (b) The bonds of each issue shall be dated, shall bear

 

 

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1 interest (which may be includable in or excludable from the
2 gross income of the owners for federal income tax purposes) at
3 such fixed or variable rates, payable at or prior to maturity,
4 and shall mature at such time or times, not more than 19 years
5 after the date of issuance, as may be determined by the
6 Authority and may be made redeemable before maturity, at the
7 option of the Authority, at such price or prices and under such
8 terms and conditions as may be fixed by the Authority. The
9 principal and interest of such bonds may be made payable in any
10 lawful medium. The resolution or the certificate of the officer
11 of the Authority approving the issuance of the bonds shall
12 determine the form of the bonds and the manner of execution of
13 the bonds and shall fix the denomination or denominations of
14 the bonds and the place or places of payment of principal and
15 interest thereof, which may be at any bank or trust company
16 within or outside the State. If any officer whose signature or
17 a facsimile thereof appears on any bonds shall cease to be such
18 officer before the delivery of such bonds, such signature or
19 facsimile shall nevertheless be valid and sufficient for all
20 purposes the same as if he had remained in office until such
21 delivery.
22     (c) The Authority may sell such bonds pursuant to notice of
23 sale and public bid or by negotiated sale in accordance with
24 the corresponding procedures applicable to like sales of
25 general obligation bonds under Section 11 of the General
26 Obligation Bond Act. The proceeds of such bonds shall be

 

 

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1 disbursed for the purposes for which such bonds were issued
2 under such restrictions as the sale agreement and the
3 resolution authorizing the issuance of such bonds or the
4 related trust indenture may provide. Such bonds shall be issued
5 upon approval of the Authority and without any other approvals,
6 filings, proceedings or the happening of any other conditions
7 or things other than the approvals, findings, proceedings,
8 conditions, and things that are specified and required by this
9 Act.
10     (d) Any pledge made by the Authority shall be valid and
11 binding at the time the pledge is made. The assets, property,
12 revenues, reserves, or earnings so pledged shall immediately be
13 subject to the lien of such pledge without any physical
14 delivery thereof or further act and the lien of any such pledge
15 shall be valid and binding as against all parties having claims
16 of any kind in tort, contract, or otherwise against the
17 Authority, irrespective of whether such parties have notice
18 thereof. Notwithstanding any other provision of law to the
19 contrary, neither the resolution nor any indenture or other
20 instrument by which a pledge is created or by which the
21 Authority's interest in pledged assets, property, revenues,
22 reserves, or earnings thereon is assigned need be filed,
23 perfected or recorded in any public records in order to protect
24 the pledge thereof or perfect the lien thereof as against third
25 parties, except that a copy thereof shall be filed in the
26 records of the Authority.

 

 

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1     (e) Whether or not the bonds of the Authority are of such
2 form and character as to be negotiable instruments under the
3 terms of the Uniform Commercial Code, the bonds are hereby made
4 negotiable instruments for all purposes, subject only to the
5 provisions of the bonds for registration.
6     (f) At the sole discretion of the Authority, any bonds
7 issued by the Authority and any related bond facility made
8 under the provisions of this Act shall be secured by a
9 resolution or trust indenture by and between the Authority and
10 the indenture trustee, which may be any trust company or bank
11 having the powers of a trust company, whether located within or
12 outside the State. Such trust indenture or resolution providing
13 for the issuance of such bonds shall, without limitation, (i)
14 provide for the creation and maintenance of such reserves as
15 the Authority shall determine to be proper; (ii) include
16 covenants setting forth the duties of the Authority in relation
17 to the bonds, the income of the Authority, the related sale
18 agreement and the related tobacco settlement revenues; (iii)
19 contain provisions relating to the prompt transfer of the
20 residual interest upon receipt of the tobacco settlement
21 revenues; (iv) contain provisions respecting the custody,
22 safeguarding, and application of all moneys and securities; (v)
23 contain such provisions for protecting and enforcing against
24 the Authority or the State the rights and remedies (pursuant
25 thereto and to the sale agreement) of the owners of the bonds
26 and any provider of a related bond facility as may be

 

 

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1 reasonable and proper and not in violation of law; and (vi)
2 contain such other provisions as the Authority may deem
3 reasonable and proper for priorities and subordination among
4 the owners of the bonds and providers of related bond
5 facilities. Any reference in this Act to a resolution of the
6 Authority shall include any trust indenture authorized
7 thereby.
8     (g) The net proceeds of bonds and any earnings thereon
9 shall never be pledged to, nor made available for, payment of
10 the bonds or any interest or redemption price thereon or any
11 other debt or obligation of the Authority. The net proceeds of
12 bonds shall be deposited by the State in the Tobacco Settlement
13 Bond Proceeds Account, and shall be used by the State (either
14 directly or by reimbursement) for the payment of outstanding
15 obligations of the General Revenue Fund or to supplement the
16 Tobacco Settlement Residual Account to pay for appropriated
17 obligations of the Tobacco Settlement Recovery Fund for State
18 fiscal year 2011 through 2013. Any residual interest in tobacco
19 settlement revenues shall be deposited in the Tobacco
20 Settlement Residual Account, and shall be used by the State
21 (either directly or by reimbursement) in accordance with
22 Section 6z-43 of the State Finance Act for appropriated
23 obligations of the Tobacco Settlement Recovery Fund. With
24 respect to any bonds of the Authority, the interest on which is
25 intended to be excludable from the gross income of the owners
26 for federal income tax purposes, the Authority and the

 

 

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1 authorized officers may provide restrictions on the use of net
2 proceeds of bonds and other amounts in the sale agreement or
3 otherwise in a tax regulatory agreement only as necessary to
4 assure such tax-exempt status.
5     (h) The Authority may enter into, amend, or terminate, as
6 it determines to be necessary or appropriate, any related bond
7 facility (i) to facilitate the issuance, sale, resale,
8 purchase, repurchase, or payment of bonds, interest rate
9 savings or market diversification, or the making or performance
10 of swap contracts, including without limitation bond
11 insurance, letters of credit and liquidity facilities, or (ii)
12 to attempt to manage or hedge risk or achieve a desirable
13 effective interest rate or cash flow. Such facility shall be
14 made upon the terms and conditions established by the
15 Authority, including without limitation provisions as to
16 security, default, termination, payment, remedy, jurisdiction
17 and consent to service of process.
18     (i) The Authority may enter into, amend, or terminate, as
19 it deems to be necessary or appropriate, any related bond
20 facility to place the obligations or investments of the
21 Authority, as represented by the bonds or the investment of
22 reserves securing the bonds or related bond facilities or other
23 tobacco settlement revenues or its other assets, in whole or in
24 part, on the interest rate, cash flow, or other basis approved
25 by the Authority, which facility may include without limitation
26 contracts commonly known as interest rate swap agreements,

 

 

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1 forward purchase contracts, or guaranteed investment contracts
2 and futures or contracts providing for payments based on levels
3 of, or changes in, interest rates. These contracts or
4 arrangements may be entered into by the Authority in connection
5 with, or incidental to, entering into, or maintaining any (i)
6 agreement which secures bonds of the Authority or (ii)
7 investment or contract providing for investment of reserves or
8 similar facility guaranteeing an investment rate for a period
9 of years not to exceed the underlying term of the bonds. The
10 determination by the Authority that a related bond facility or
11 the amendment or termination thereof is necessary or
12 appropriate as aforesaid shall be conclusive. Any related bond
13 facility may contain such provisions as to security, default,
14 termination, payment, remedy, jurisdiction, and consent to
15 service of process and other terms and conditions as determined
16 by the Authority, after giving due consideration to the
17 creditworthiness of the counterparty or other obligated party,
18 including any rating by any nationally recognized rating
19 agency, and any other criteria as may be appropriate.
20     (j) Bonds or any related bond facility may contain a
21 recital that they are issued or executed, respectively,
22 pursuant to this Act, which recital shall be conclusive
23 evidence of their validity, respectively, and the regularity of
24 the proceedings relating thereto.
 
25     Section 3-7. State not liable on bonds or related bond

 

 

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1 facilities. No bond or related bond facility shall constitute
2 an indebtedness or an obligation of the State of Illinois or
3 any subdivision thereof, within the purview of any
4 constitutional or statutory limitation or provision or a charge
5 against the general credit or taxing powers, if any, of any of
6 them but shall be payable solely from pledged tobacco revenues.
7 No owner of any bond or provider of any related bond facility
8 shall have the right to compel the exercise of the taxing power
9 of the State to pay any principal installment of, redemption
10 premium, if any, or interest on the bonds or to make any
11 payment due under any related bond facility.
 
12     Section 3-8. Agreement with the State.
13     (a) The State pledges and agrees with the Authority, and
14 the owners of the bonds of the Authority in which the Authority
15 has included such pledge and agreement, that the State shall
16 (i) irrevocably direct the escrow agent under the Master
17 Settlement Agreement to transfer all pledged tobacco revenues
18 directly to the Authority or its assignee, (ii) enforce its
19 right to collect all moneys due from the participating
20 manufacturers under the Master Settlement Agreement and, in
21 addition, shall diligently enforce the qualifying statute as
22 contemplated in Section IX(d)(2)(B) of the Master Settlement
23 Agreement against all nonparticipating manufacturers selling
24 tobacco products in the State and that are not in compliance
25 with the qualifying statute, in each case in the manner and to

 

 

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1 the extent deemed necessary in the judgment of and consistent
2 with the discretion of the Attorney General of the State,
3 provided, however, that the sale agreement shall provide (a)
4 that the remedies available to the Authority and the
5 bondholders for any breach of the pledges and agreements of the
6 State set forth in this clause shall be limited to injunctive
7 relief, and (b) that the State shall be deemed to have
8 diligently enforced the qualifying statute so long as there has
9 been no judicial determination by a court of competent
10 jurisdiction in this State, in an action commenced by a
11 participating tobacco manufacturer under the Master Settlement
12 Agreement, that the State has failed to diligently enforce the
13 qualifying statute for the purposes of Section IX(d)(2)(B) of
14 the Master Settlement Agreement, (iii) in any materially
15 adverse way, neither amend the Master Settlement Agreement nor
16 the Consent Decree or take any other action that would (a)
17 impair the Authority's right to receive pledged tobacco
18 revenues, or (b) limit or alter the rights hereby vested in the
19 Authority to fulfill the terms of its agreements with the
20 bondholders, or (c) impair the rights and remedies of such
21 bondholders or the security for such bonds until such bonds,
22 together with the interest thereon and all costs and expenses
23 in connection with any action or proceedings by or on behalf of
24 such bondholders, are fully paid and discharged (provided, that
25 nothing herein shall be construed to preclude the State's
26 regulation of smoking, smoking cessation activities and laws,

 

 

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1 and taxation and regulation of the sale of cigarettes or the
2 like or to restrict the right of the State to amend, modify,
3 repeal, or otherwise alter statutes imposing or relating to the
4 taxes), and (iv) not amend, supersede or repeal the Master
5 Settlement Agreement or the qualifying statute in any way that
6 would materially adversely affect the amount of any payment to,
7 or the rights to such payments of, the Authority or such
8 bondholders. This pledge and agreement may be included in the
9 sale agreement and the Authority may include this pledge and
10 agreement in any contract with the bondholders of the
11 Authority.
12     (b) The provisions of this Act, the bonds issued pursuant
13 to this Act, and the pledges and agreements by the State and
14 the Authority to the bondholders shall be not be interpreted or
15 construed to limit or impair the authority or discretion of the
16 Attorney General to administer and enforce provisions of the
17 Master Settlement Agreement or to direct, control, and settle
18 any litigation or arbitration proceeding arising from or
19 relating to the Master Settlement Agreement.
 
20     Section 3-9. Enforcement of contract. The provisions of
21 this Act and of any resolution or proceeding authorizing the
22 issuance of bonds or a related bond facility shall constitute a
23 contract with the holders of the bonds or the related bond
24 facility, and the provisions thereof shall be enforceable
25 either by mandamus or other proceeding in any Illinois court of

 

 

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1 competent jurisdiction to enforce and compel the performance of
2 all duties required by this Act and by any resolution
3 authorizing the issuance of bonds a related bond facility
4 adopted in response hereto.
 
5     Section 3-10. Bonds as legal investments. The State and all
6 counties, cities, villages, incorporated towns and other
7 municipal corporations, political subdivisions and public
8 bodies, and public officers of any thereof, all banks, bankers,
9 trust companies, savings banks and institutions, building and
10 loan associations, savings and loan associations, investment
11 companies, and other persons carrying on a banking business,
12 all insurance companies, insurance associations, and other
13 persons carrying on an insurance business, and all executors,
14 administrators, guardians, trustees, and other fiduciaries may
15 legally invest any sinking funds, moneys, or other funds
16 belonging to them or within their control in any bonds issued
17 pursuant to this Act, it being the purpose of this Section to
18 authorize the investment in such bonds of all sinking,
19 insurance, retirement, compensation, pension, and trust funds,
20 whether owned or controlled by private or public persons or
21 officers; provided, however, that nothing contained in this
22 Section may be construed as relieving any person, firm, or
23 corporation from any duty of exercising reasonable care in
24 selecting securities for purchase or investment.
 

 

 

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1     Section 3-12. Exemption from taxation. It is hereby
2 determined that the creation of the Authority and the carrying
3 out of its corporate purposes are in all respects for the
4 benefit of the people of the State and are public purposes.
5 Accordingly, the property of the Authority, its income and its
6 operations shall be exempt from taxation. The Authority shall
7 not be required to pay any fees, taxes or assessments of any
8 kind, whether state or local, including, but not limited to,
9 fees, taxes, ad valorem taxes on real property, sales taxes or
10 other taxes, upon or with respect to any property owned by it
11 or under its jurisdiction, control or supervision, or upon the
12 uses thereof, or upon or with respect to its activities or
13 operations in furtherance of the powers conferred upon it by
14 this Act.
 
15     Section 3-13. Illinois State Auditing Act. The Auditor
16 General shall conduct financial audits and program audits of
17 the Authority, in accordance with the Illinois State Auditing
18 Act.
 
19     Section 3-15. Supplemental nature of Act; construction and
20 purpose. The powers conferred by this Act shall be in addition
21 to and supplemental to the powers conferred by any other law,
22 general or special, and may be exercised notwithstanding the
23 provisions of any other such law. Insofar as the provisions of
24 this Act are inconsistent with the provisions of any other law,

 

 

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1 general or special, the provisions of this Act shall be
2 controlling.
 
3     Section 3-16. Severability. If any provision of this Act is
4 held invalid, such provision shall be deemed to be excised and
5 the invalidity thereof shall not affect any of the other
6 provisions of this Act. If the application of any provision of
7 this Act to any person or circumstance is held invalid, it
8 shall not affect the application of such provision to such
9 persons or circumstances other than those as to which it is
10 held invalid.
 
11
ARTICLE 5. AMENDATORY PROVISIONS

 
12     Section 5-5. The Illinois Administrative Procedure Act is
13 amended by changing Section 5-45 as follows:
 
14     (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
15     Sec. 5-45. Emergency rulemaking.
16     (a) "Emergency" means the existence of any situation that
17 any agency finds reasonably constitutes a threat to the public
18 interest, safety, or welfare.
19     (b) If any agency finds that an emergency exists that
20 requires adoption of a rule upon fewer days than is required by
21 Section 5-40 and states in writing its reasons for that
22 finding, the agency may adopt an emergency rule without prior

 

 

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1 notice or hearing upon filing a notice of emergency rulemaking
2 with the Secretary of State under Section 5-70. The notice
3 shall include the text of the emergency rule and shall be
4 published in the Illinois Register. Consent orders or other
5 court orders adopting settlements negotiated by an agency may
6 be adopted under this Section. Subject to applicable
7 constitutional or statutory provisions, an emergency rule
8 becomes effective immediately upon filing under Section 5-65 or
9 at a stated date less than 10 days thereafter. The agency's
10 finding and a statement of the specific reasons for the finding
11 shall be filed with the rule. The agency shall take reasonable
12 and appropriate measures to make emergency rules known to the
13 persons who may be affected by them.
14     (c) An emergency rule may be effective for a period of not
15 longer than 150 days, but the agency's authority to adopt an
16 identical rule under Section 5-40 is not precluded. No
17 emergency rule may be adopted more than once in any 24 month
18 period, except that this limitation on the number of emergency
19 rules that may be adopted in a 24 month period does not apply
20 to (i) emergency rules that make additions to and deletions
21 from the Drug Manual under Section 5-5.16 of the Illinois
22 Public Aid Code or the generic drug formulary under Section
23 3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
24 emergency rules adopted by the Pollution Control Board before
25 July 1, 1997 to implement portions of the Livestock Management
26 Facilities Act, (iii) emergency rules adopted by the Illinois

 

 

09600HB2428sam002 - 26 - LRB096 10442 HLH 41448 a

1 Department of Public Health under subsections (a) through (i)
2 of Section 2 of the Department of Public Health Act when
3 necessary to protect the public's health, or (iv) emergency
4 rules adopted pursuant to subsection (n) of this Section, or
5 (v) emergency rules adopted pursuant to subsection (o) of this
6 Section. Two or more emergency rules having substantially the
7 same purpose and effect shall be deemed to be a single rule for
8 purposes of this Section.
9     (d) In order to provide for the expeditious and timely
10 implementation of the State's fiscal year 1999 budget,
11 emergency rules to implement any provision of Public Act 90-587
12 or 90-588 or any other budget initiative for fiscal year 1999
13 may be adopted in accordance with this Section by the agency
14 charged with administering that provision or initiative,
15 except that the 24-month limitation on the adoption of
16 emergency rules and the provisions of Sections 5-115 and 5-125
17 do not apply to rules adopted under this subsection (d). The
18 adoption of emergency rules authorized by this subsection (d)
19 shall be deemed to be necessary for the public interest,
20 safety, and welfare.
21     (e) In order to provide for the expeditious and timely
22 implementation of the State's fiscal year 2000 budget,
23 emergency rules to implement any provision of this amendatory
24 Act of the 91st General Assembly or any other budget initiative
25 for fiscal year 2000 may be adopted in accordance with this
26 Section by the agency charged with administering that provision

 

 

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1 or initiative, except that the 24-month limitation on the
2 adoption of emergency rules and the provisions of Sections
3 5-115 and 5-125 do not apply to rules adopted under this
4 subsection (e). The adoption of emergency rules authorized by
5 this subsection (e) shall be deemed to be necessary for the
6 public interest, safety, and welfare.
7     (f) In order to provide for the expeditious and timely
8 implementation of the State's fiscal year 2001 budget,
9 emergency rules to implement any provision of this amendatory
10 Act of the 91st General Assembly or any other budget initiative
11 for fiscal year 2001 may be adopted in accordance with this
12 Section by the agency charged with administering that provision
13 or initiative, except that the 24-month limitation on the
14 adoption of emergency rules and the provisions of Sections
15 5-115 and 5-125 do not apply to rules adopted under this
16 subsection (f). The adoption of emergency rules authorized by
17 this subsection (f) shall be deemed to be necessary for the
18 public interest, safety, and welfare.
19     (g) In order to provide for the expeditious and timely
20 implementation of the State's fiscal year 2002 budget,
21 emergency rules to implement any provision of this amendatory
22 Act of the 92nd General Assembly or any other budget initiative
23 for fiscal year 2002 may be adopted in accordance with this
24 Section by the agency charged with administering that provision
25 or initiative, except that the 24-month limitation on the
26 adoption of emergency rules and the provisions of Sections

 

 

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1 5-115 and 5-125 do not apply to rules adopted under this
2 subsection (g). The adoption of emergency rules authorized by
3 this subsection (g) shall be deemed to be necessary for the
4 public interest, safety, and welfare.
5     (h) In order to provide for the expeditious and timely
6 implementation of the State's fiscal year 2003 budget,
7 emergency rules to implement any provision of this amendatory
8 Act of the 92nd General Assembly or any other budget initiative
9 for fiscal year 2003 may be adopted in accordance with this
10 Section by the agency charged with administering that provision
11 or initiative, except that the 24-month limitation on the
12 adoption of emergency rules and the provisions of Sections
13 5-115 and 5-125 do not apply to rules adopted under this
14 subsection (h). The adoption of emergency rules authorized by
15 this subsection (h) shall be deemed to be necessary for the
16 public interest, safety, and welfare.
17     (i) In order to provide for the expeditious and timely
18 implementation of the State's fiscal year 2004 budget,
19 emergency rules to implement any provision of this amendatory
20 Act of the 93rd General Assembly or any other budget initiative
21 for fiscal year 2004 may be adopted in accordance with this
22 Section by the agency charged with administering that provision
23 or initiative, except that the 24-month limitation on the
24 adoption of emergency rules and the provisions of Sections
25 5-115 and 5-125 do not apply to rules adopted under this
26 subsection (i). The adoption of emergency rules authorized by

 

 

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1 this subsection (i) shall be deemed to be necessary for the
2 public interest, safety, and welfare.
3     (j) In order to provide for the expeditious and timely
4 implementation of the provisions of the State's fiscal year
5 2005 budget as provided under the Fiscal Year 2005 Budget
6 Implementation (Human Services) Act, emergency rules to
7 implement any provision of the Fiscal Year 2005 Budget
8 Implementation (Human Services) Act may be adopted in
9 accordance with this Section by the agency charged with
10 administering that provision, except that the 24-month
11 limitation on the adoption of emergency rules and the
12 provisions of Sections 5-115 and 5-125 do not apply to rules
13 adopted under this subsection (j). The Department of Public Aid
14 may also adopt rules under this subsection (j) necessary to
15 administer the Illinois Public Aid Code and the Children's
16 Health Insurance Program Act. The adoption of emergency rules
17 authorized by this subsection (j) shall be deemed to be
18 necessary for the public interest, safety, and welfare.
19     (k) In order to provide for the expeditious and timely
20 implementation of the provisions of the State's fiscal year
21 2006 budget, emergency rules to implement any provision of this
22 amendatory Act of the 94th General Assembly or any other budget
23 initiative for fiscal year 2006 may be adopted in accordance
24 with this Section by the agency charged with administering that
25 provision or initiative, except that the 24-month limitation on
26 the adoption of emergency rules and the provisions of Sections

 

 

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1 5-115 and 5-125 do not apply to rules adopted under this
2 subsection (k). The Department of Healthcare and Family
3 Services may also adopt rules under this subsection (k)
4 necessary to administer the Illinois Public Aid Code, the
5 Senior Citizens and Disabled Persons Property Tax Relief and
6 Pharmaceutical Assistance Act, the Senior Citizens and
7 Disabled Persons Prescription Drug Discount Program Act (now
8 the Illinois Prescription Drug Discount Program Act), and the
9 Children's Health Insurance Program Act. The adoption of
10 emergency rules authorized by this subsection (k) shall be
11 deemed to be necessary for the public interest, safety, and
12 welfare.
13     (l) In order to provide for the expeditious and timely
14 implementation of the provisions of the State's fiscal year
15 2007 budget, the Department of Healthcare and Family Services
16 may adopt emergency rules during fiscal year 2007, including
17 rules effective July 1, 2007, in accordance with this
18 subsection to the extent necessary to administer the
19 Department's responsibilities with respect to amendments to
20 the State plans and Illinois waivers approved by the federal
21 Centers for Medicare and Medicaid Services necessitated by the
22 requirements of Title XIX and Title XXI of the federal Social
23 Security Act. The adoption of emergency rules authorized by
24 this subsection (l) shall be deemed to be necessary for the
25 public interest, safety, and welfare.
26     (m) In order to provide for the expeditious and timely

 

 

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1 implementation of the provisions of the State's fiscal year
2 2008 budget, the Department of Healthcare and Family Services
3 may adopt emergency rules during fiscal year 2008, including
4 rules effective July 1, 2008, in accordance with this
5 subsection to the extent necessary to administer the
6 Department's responsibilities with respect to amendments to
7 the State plans and Illinois waivers approved by the federal
8 Centers for Medicare and Medicaid Services necessitated by the
9 requirements of Title XIX and Title XXI of the federal Social
10 Security Act. The adoption of emergency rules authorized by
11 this subsection (m) shall be deemed to be necessary for the
12 public interest, safety, and welfare.
13     (n) In order to provide for the expeditious and timely
14 implementation of the provisions of the State's fiscal year
15 2010 budget, emergency rules to implement any provision of this
16 amendatory Act of the 96th General Assembly or any other budget
17 initiative authorized by the 96th General Assembly for fiscal
18 year 2010 may be adopted in accordance with this Section by the
19 agency charged with administering that provision or
20 initiative. The adoption of emergency rules authorized by this
21 subsection (n) shall be deemed to be necessary for the public
22 interest, safety, and welfare. The rulemaking authority
23 granted in this subsection (n) shall apply only to rules
24 promulgated during Fiscal Year 2010.
25     (o) In order to provide for the expeditious and timely
26 implementation of the provisions of the State's fiscal year

 

 

09600HB2428sam002 - 32 - LRB096 10442 HLH 41448 a

1 2011 budget, emergency rules to implement any provision of this
2 amendatory Act of the 96th General Assembly or any other budget
3 initiative authorized by the 96th General Assembly for fiscal
4 year 2011 may be adopted in accordance with this Section by the
5 agency charged with administering that provision or
6 initiative. The adoption of emergency rules authorized by this
7 subsection (o) is deemed to be necessary for the public
8 interest, safety, and welfare. The rulemaking authority
9 granted in this subsection (o) applies only to rules
10 promulgated on or after the effective date of this amendatory
11 Act of the 96th General Assembly through June 30, 2011.
12 (Source: P.A. 95-12, eff. 7-2-07; 95-331, eff. 8-21-07; 96-45,
13 eff. 7-15-09.)
 
14     Section 5-10. The General Assembly Compensation Act is
15 amended by adding Section 1.6 as follows:
 
16     (25 ILCS 115/1.6 new)
17     Sec. 1.6. FY11 furlough days. During the first 6 months of
18 the fiscal year beginning July 1, 2010, every member of the
19 96th General Assembly is mandatorily required to forfeit 6 days
20 of compensation. The State Comptroller shall deduct the
21 equivalent of 1/365th of the annual salary of each member of
22 the 96th General Assembly from the compensation of that member
23 in each of the first 6 months of the fiscal year. During the
24 second 6 months of the fiscal year beginning July 1, 2010,

 

 

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1 every member of the 97th General Assembly is mandatorily
2 required to forfeit 6 days of compensation. The State
3 Comptroller shall deduct the equivalent of 1/365th of the
4 annual salary of each member of the 97th General Assembly from
5 the compensation of that member in each of the second 6 months
6 of the fiscal year. For purposes of this Section, annual
7 compensation includes compensation paid to each member by the
8 State for one year of service pursuant to Section 1, except any
9 payments made for mileage and allowances for travel and meals.
10 The forfeiture required by this Section is not considered a
11 change in salary and shall not impact pension or other benefits
12 provided to members of the General Assembly.
 
13     Section 5-15. The State Finance Act is amended by changing
14 Sections 6z-43 and 25 and by adding Sections 5h and 14.2 as
15 follows:
 
16     (30 ILCS 105/5h new)
17     Sec. 5h. Cash flow borrowing and general funds liquidity.
18     (a) In order to meet cash flow deficits and to maintain
19 liquidity in the General Revenue Fund and the Common School
20 Fund, this Section shall constitute the irrevocable and
21 continuing authority for and direction to the State Treasurer
22 and the State Comptroller to make transfers to the General
23 Revenue Fund or the Common School Fund, as directed by the
24 Governor, out of special funds of the State, to the extent

 

 

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1 allowed by federal law. No transfer may be made from a fund
2 under this Section that would have the effect of reducing the
3 available balance in the fund to an amount less than the amount
4 remaining unexpended and unreserved from the total
5 appropriation from that fund estimated to be expended for that
6 fiscal year. No such transfer may reduce the cumulative balance
7 of all of the special funds of the State to an amount less than
8 the total debt service payable during the 12 months immediately
9 following the date of the transfer on any bonded indebtedness
10 of the State and any certificates issued under the Short Term
11 Borrowing Act. Notwithstanding any other provision of this
12 Section, no such transfer may be made from any special fund
13 that is exclusively collected by or appropriated to any other
14 constitutional officer without the written approval of that
15 constitutional officer.
16     (b) If moneys have been transferred to the General Revenue
17 Fund or the Common School Fund pursuant to subsection (a) of
18 this Section, this amendatory Act of the 96th General Assembly
19 shall constitute the irrevocable and continuing authority for
20 and direction to the State Treasurer and State Comptroller to
21 reimburse the funds of origin from the General Revenue Fund or
22 the Common School Fund, as appropriate, by transferring to the
23 funds of origin, at such times and in such amounts as directed
24 by the Governor when necessary to support appropriated
25 expenditures from the funds, an amount equal to that
26 transferred from them plus any interest that would have accrued

 

 

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1 thereon had the transfer not occurred, except that any moneys
2 transferred pursuant to subsection (a) of this Section shall be
3 repaid to the fund of origin within 18 months after the date on
4 which they were borrowed.
5     (c) On the first day of each quarterly period in each
6 fiscal year, the Governor's Office of Management and Budget
7 shall provide to the President and the Minority Leader of the
8 Senate, the Speaker and the Minority Leader of the House of
9 Representatives, and the Commission on Government Forecasting
10 and Accountability a report on all transfers made pursuant to
11 this Section in the prior quarterly period. The report must be
12 provided in both written and electronic format. The report must
13 include all of the following:
14         (1) The date each transfer was made.
15         (2) The amount of each transfer.
16         (3) In the case of a transfer from the General Revenue
17     Fund or the Common School Fund to a fund of origin pursuant
18     to subsection (b) of this Section, the amount of interest
19     being paid to the fund of origin.
20         (4) The end of day balance of both the fund of origin
21     and the General Revenue Fund or the Common School Fund,
22     whichever the case may be, on the date the transfer was
23     made.
 
24     (30 ILCS 105/6z-43)
25     Sec. 6z-43. Tobacco Settlement Recovery Fund.

 

 

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1     (a) There is created in the State Treasury a special fund
2 to be known as the Tobacco Settlement Recovery Fund, which
3 shall contain 3 accounts: (i) the General Account, (ii) the
4 Tobacco Settlement Bond Proceeds Account and (iii) the Tobacco
5 Settlement Residual Account. There shall be deposited into the
6 several accounts of the Tobacco Settlement Recovery Fund into
7 which shall be deposited all monies paid to the State pursuant
8 to (1) the Master Settlement Agreement entered in the case of
9 People of the State of Illinois v. Philip Morris, et al.
10 (Circuit Court of Cook County, No. 96-L13146) and (2) any
11 settlement with or judgment against any tobacco product
12 manufacturer other than one participating in the Master
13 Settlement Agreement in satisfaction of any released claim as
14 defined in the Master Settlement Agreement, as well as any
15 other monies as provided by law. Moneys All earnings on Fund
16 investments shall be deposited into the Tobacco Settlement Bond
17 Proceeds Account and the Tobacco Settlement Residual Account as
18 provided by the terms of the Railsplitter Tobacco Settlement
19 Authority Act, provided that an annual amount not less than
20 $2,500,000, subject to appropriation, shall be deposited into
21 the Tobacco Settlement Residual Account for use by the Attorney
22 General for enforcement of the Master Settlement Agreement. All
23 other moneys available to be deposited into the Tobacco
24 Settlement Recovery Fund shall be deposited into the General
25 Account. An investment made from moneys credited to a specific
26 account constitutes part of that account and such account shall

 

 

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1 be credited with all income from the investment of such moneys.
2 Fund. Upon the creation of the Fund, the State Comptroller
3 shall order the State Treasurer to transfer into the Fund any
4 monies paid to the State as described in item (1) or (2) of
5 this Section before the creation of the Fund plus any interest
6 earned on the investment of those monies. The Treasurer may
7 invest the moneys in the several accounts the Fund in the same
8 manner, in the same types of investments, and subject to the
9 same limitations provided in the Illinois Pension Code for the
10 investment of pension funds other than those established under
11 Article 3 or 4 of the Code. Notwithstanding the foregoing, to
12 the extent necessary to preserve the tax-exempt status of any
13 Bonds issued pursuant to the Railsplitter Tobacco Settlement
14 Authority Act, the interest on which is intended to be
15 excludable from the gross income of the owners for federal
16 income tax purposes, moneys on deposit in the Tobacco
17 Settlement Bond Proceeds Account and the Tobacco Settlement
18 Residual Account may be invested in obligations the interest
19 upon which is tax-exempt under the provisions of Section 103 of
20 the Internal Revenue Code of 1986, as now or hereafter amended,
21 or any successor code or provision.
22     (b) Moneys on deposit in the Tobacco Settlement Bond
23 Proceeds Account and the Tobacco Settlement Residual Account
24 may be expended, subject to appropriation, for the purposes
25 authorized in Section 6(g) of the Railsplitter Tobacco
26 Settlement Authority Act.

 

 

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1     (c) (b) As soon as may be practical after June 30, 2001,
2 upon notification from and at the direction of the Governor,
3 the State Comptroller shall direct and the State Treasurer
4 shall transfer the unencumbered balance in the Tobacco
5 Settlement Recovery Fund as of June 30, 2001, as determined by
6 the Governor, into the Budget Stabilization Fund. The Treasurer
7 may invest the moneys in the Budget Stabilization Fund in the
8 same manner, in the same types of investments, and subject to
9 the same limitations provided in the Illinois Pension Code for
10 the investment of pension funds other than those established
11 under Article 3 or 4 of the Code.
12     (c) In addition to any other deposits authorized by law,
13 after any delivery of any bonds as authorized by Section 7.5 of
14 the General Obligation Bond Act for deposits to the General
15 Revenue Fund and the Budget Stabilization Fund (referred to as
16 "tobacco securitization general obligation bonds"), the
17 Governor shall certify, on or before June 30, 2003 and June 30
18 of each year thereafter, to the State Comptroller and State
19 Treasurer the total amount of principal of, interest on, and
20 premium, if any, due on those bonds in the next fiscal year
21 beginning with amounts due in fiscal year 2004. As soon as
22 practical after the annual payment of tobacco settlement moneys
23 to the Tobacco Settlement Recovery Fund as described in item
24 (1) of subsection (a), the State Treasurer and State
25 Comptroller shall transfer from the Tobacco Settlement
26 Recovery Fund to the General Obligation Bond Retirement and

 

 

09600HB2428sam002 - 39 - LRB096 10442 HLH 41448 a

1 Interest Fund the amount certified by the Governor, plus any
2 cumulative deficiency in those transfers for prior years.
3     (d) All federal financial participation moneys received
4 pursuant to expenditures from the Fund shall be deposited into
5 the General Account Fund.
6 (Source: P.A. 95-331, eff. 8-21-07.)
 
7     (30 ILCS 105/14.2 new)
8     Sec. 14.2. Fiscal year 2011 State officer compensation
9 forfeiture.
10     (a) During the fiscal year beginning on July 1, 2010, each
11 State officer listed in subsection (b) is required to forfeit
12 one day of compensation each month. The State Comptroller shall
13 deduct the equivalent of 1/261st of the annual compensation of
14 each of those State officers that is paid from the General
15 Revenue Fund from the compensation of that State officer in
16 each month of the fiscal year. For purposes of this Section,
17 annual compensation includes compensation paid to each of those
18 State officers by the State for one year of service, except any
19 payments made for mileage and allowances for travel and meals.
20 The forfeiture required by this Section is not considered a
21 change in salary and shall not impact pension or other benefits
22 provided to those State officers.
23     (b) "State officers" for the purposes of subsection (a) are
24 the following:
25         Governor

 

 

09600HB2428sam002 - 40 - LRB096 10442 HLH 41448 a

1         Lieutenant Governor
2         Secretary of State
3         Attorney General
4         Comptroller
5         State Treasurer
6         Department on Aging: Director
7         Department of Agriculture: Director and Assistant
8     Director
9         Department of Central Management Services: Director
10     and Assistant Directors
11         Department of Children and Family Services: Director
12         Department of Corrections: Director and Assistant
13     Director
14         Department of Commerce and Economic Opportunity:
15     Director and Assistant Director
16         Environmental Protection Agency: Director
17         Department of Financial and Professional Regulation:
18     Secretary and Directors
19         Department of Human Services: Secretary and Assistant
20     Secretaries
21         Department of Juvenile Justice: Director
22         Department of Labor: Director, Assistant Director,
23     Chief Factory Inspector, and Superintendent of Safety
24     Inspection and Education
25         Department of State Police: Director and Assistant
26     Director

 

 

09600HB2428sam002 - 41 - LRB096 10442 HLH 41448 a

1         Department of Military Affairs: Adjutant General and
2     Chief Assistants to the Adjutant General
3         Department of Natural Resources: Director, Assistant
4     Director, Mine Officers, and Miners' Examining Officers
5         Illinois Labor Relations Board: Chairman, State Labor
6     Relations Board members, and Local Labor Relations Board
7     members
8         Department of Healthcare and Family Services: Director
9     and Assistant Director
10         Department of Public Health: Director and Assistant
11     Director
12         Department of Revenue: Director and Assistant Director
13         Property Tax Appeal Board: Chairman and members
14         Department of Veterans' Affairs: Director and
15     Assistant Director
16         Civil Service Commission: Chairman and members
17         Commerce Commission: Chairman and members
18         State Board of Elections: Chairman, Vice-Chairman, and
19     members
20         Illinois Emergency Management Agency: Director and
21     Assistant Director
22         Department of Human Rights: Director
23         Human Rights Commission: Chairman and members
24         Illinois Workers' Compensation Commission: Chairman
25     and members
26         Liquor Control Commission: Chairman, members, and

 

 

09600HB2428sam002 - 42 - LRB096 10442 HLH 41448 a

1     Secretary
2         Executive Ethics Commission: members
3         Illinois Power Agency: Director
4         Pollution Control Board: Chairman and members
5         Prisoner Review Board: Chairman and members
6         Secretary of State Merit Commission: Chairman and
7     members
8         Educational Labor Relations Board: Chairman and
9     members
10         Department of Transportation: Secretary and Assistant
11     Secretary
12         Office of Small Business Utility Advocate: small
13     business utility advocate
14         Executive Inspector General for the Office of the
15     Governor
16         Executive Inspector General for the Office of the
17     Attorney General
18         Executive Inspector General for the Office of the
19     Secretary of State
20         Executive Inspector General for the Office of the
21     Comptroller
22         Executive Inspector General for the Office of the
23     Treasurer
24         Office of Auditor General: Auditor General and Deputy
25     Auditors General.
 

 

 

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1     (30 ILCS 105/25)  (from Ch. 127, par. 161)
2     Sec. 25. Fiscal year limitations.
3     (a) All appropriations shall be available for expenditure
4 for the fiscal year or for a lesser period if the Act making
5 that appropriation so specifies. A deficiency or emergency
6 appropriation shall be available for expenditure only through
7 June 30 of the year when the Act making that appropriation is
8 enacted unless that Act otherwise provides.
9     (b) Outstanding liabilities as of June 30, payable from
10 appropriations which have otherwise expired, may be paid out of
11 the expiring appropriations during the 2-month period ending at
12 the close of business on August 31. Any service involving
13 professional or artistic skills or any personal services by an
14 employee whose compensation is subject to income tax
15 withholding must be performed as of June 30 of the fiscal year
16 in order to be considered an "outstanding liability as of June
17 30" that is thereby eligible for payment out of the expiring
18 appropriation.
19     However, payment of tuition reimbursement claims under
20 Section 14-7.03 or 18-3 of the School Code may be made by the
21 State Board of Education from its appropriations for those
22 respective purposes for any fiscal year, even though the claims
23 reimbursed by the payment may be claims attributable to a prior
24 fiscal year, and payments may be made at the direction of the
25 State Superintendent of Education from the fund from which the
26 appropriation is made without regard to any fiscal year

 

 

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1 limitations.
2     All outstanding liabilities as of June 30, 2010, payable
3 from appropriations that would otherwise expire at the
4 conclusion of the lapse period for fiscal year 2010, and
5 interest penalties payable on those liabilities under the State
6 Prompt Payment Act, may be paid out of the expiring
7 appropriations until December 31, 2010, without regard to the
8 fiscal year in which the payment is made, as long as vouchers
9 for the liabilities are received by the Comptroller no later
10 than August 31, 2010.
11     Medical payments may be made by the Department of Veterans'
12 Affairs from its appropriations for those purposes for any
13 fiscal year, without regard to the fact that the medical
14 services being compensated for by such payment may have been
15 rendered in a prior fiscal year.
16     Medical payments may be made by the Department of
17 Healthcare and Family Services and medical payments and child
18 care payments may be made by the Department of Human Services
19 (as successor to the Department of Public Aid) from
20 appropriations for those purposes for any fiscal year, without
21 regard to the fact that the medical or child care services
22 being compensated for by such payment may have been rendered in
23 a prior fiscal year; and payments may be made at the direction
24 of the Department of Central Management Services from the
25 Health Insurance Reserve Fund and the Local Government Health
26 Insurance Reserve Fund without regard to any fiscal year

 

 

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1 limitations.
2     Medical payments may be made by the Department of Human
3 Services from its appropriations relating to substance abuse
4 treatment services for any fiscal year, without regard to the
5 fact that the medical services being compensated for by such
6 payment may have been rendered in a prior fiscal year, provided
7 the payments are made on a fee-for-service basis consistent
8 with requirements established for Medicaid reimbursement by
9 the Department of Healthcare and Family Services.
10     Additionally, payments may be made by the Department of
11 Human Services from its appropriations, or any other State
12 agency from its appropriations with the approval of the
13 Department of Human Services, from the Immigration Reform and
14 Control Fund for purposes authorized pursuant to the
15 Immigration Reform and Control Act of 1986, without regard to
16 any fiscal year limitations.
17     Further, with respect to costs incurred in fiscal years
18 2002 and 2003 only, payments may be made by the State Treasurer
19 from its appropriations from the Capital Litigation Trust Fund
20 without regard to any fiscal year limitations.
21     Lease payments may be made by the Department of Central
22 Management Services under the sale and leaseback provisions of
23 Section 7.4 of the State Property Control Act with respect to
24 the James R. Thompson Center and the Elgin Mental Health Center
25 and surrounding land from appropriations for that purpose
26 without regard to any fiscal year limitations.

 

 

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1     Lease payments may be made under the sale and leaseback
2 provisions of Section 7.5 of the State Property Control Act
3 with respect to the Illinois State Toll Highway Authority
4 headquarters building and surrounding land without regard to
5 any fiscal year limitations.
6     (c) Further, payments may be made by the Department of
7 Public Health and the Department of Human Services (acting as
8 successor to the Department of Public Health under the
9 Department of Human Services Act) from their respective
10 appropriations for grants for medical care to or on behalf of
11 persons suffering from chronic renal disease, persons
12 suffering from hemophilia, rape victims, and premature and
13 high-mortality risk infants and their mothers and for grants
14 for supplemental food supplies provided under the United States
15 Department of Agriculture Women, Infants and Children
16 Nutrition Program, for any fiscal year without regard to the
17 fact that the services being compensated for by such payment
18 may have been rendered in a prior fiscal year.
19     (d) The Department of Public Health and the Department of
20 Human Services (acting as successor to the Department of Public
21 Health under the Department of Human Services Act) shall each
22 annually submit to the State Comptroller, Senate President,
23 Senate Minority Leader, Speaker of the House, House Minority
24 Leader, and the respective Chairmen and Minority Spokesmen of
25 the Appropriations Committees of the Senate and the House, on
26 or before December 31, a report of fiscal year funds used to

 

 

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1 pay for services provided in any prior fiscal year. This report
2 shall document by program or service category those
3 expenditures from the most recently completed fiscal year used
4 to pay for services provided in prior fiscal years.
5     (e) The Department of Healthcare and Family Services, the
6 Department of Human Services (acting as successor to the
7 Department of Public Aid), and the Department of Human Services
8 making fee-for-service payments relating to substance abuse
9 treatment services provided during a previous fiscal year shall
10 each annually submit to the State Comptroller, Senate
11 President, Senate Minority Leader, Speaker of the House, House
12 Minority Leader, the respective Chairmen and Minority
13 Spokesmen of the Appropriations Committees of the Senate and
14 the House, on or before November 30, a report that shall
15 document by program or service category those expenditures from
16 the most recently completed fiscal year used to pay for (i)
17 services provided in prior fiscal years and (ii) services for
18 which claims were received in prior fiscal years.
19     (f) The Department of Human Services (as successor to the
20 Department of Public Aid) shall annually submit to the State
21 Comptroller, Senate President, Senate Minority Leader, Speaker
22 of the House, House Minority Leader, and the respective
23 Chairmen and Minority Spokesmen of the Appropriations
24 Committees of the Senate and the House, on or before December
25 31, a report of fiscal year funds used to pay for services
26 (other than medical care) provided in any prior fiscal year.

 

 

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1 This report shall document by program or service category those
2 expenditures from the most recently completed fiscal year used
3 to pay for services provided in prior fiscal years.
4     (g) In addition, each annual report required to be
5 submitted by the Department of Healthcare and Family Services
6 under subsection (e) shall include the following information
7 with respect to the State's Medicaid program:
8         (1) Explanations of the exact causes of the variance
9     between the previous year's estimated and actual
10     liabilities.
11         (2) Factors affecting the Department of Healthcare and
12     Family Services' liabilities, including but not limited to
13     numbers of aid recipients, levels of medical service
14     utilization by aid recipients, and inflation in the cost of
15     medical services.
16         (3) The results of the Department's efforts to combat
17     fraud and abuse.
18     (h) As provided in Section 4 of the General Assembly
19 Compensation Act, any utility bill for service provided to a
20 General Assembly member's district office for a period
21 including portions of 2 consecutive fiscal years may be paid
22 from funds appropriated for such expenditure in either fiscal
23 year.
24     (i) An agency which administers a fund classified by the
25 Comptroller as an internal service fund may issue rules for:
26         (1) billing user agencies in advance for payments or

 

 

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1     authorized inter-fund transfers based on estimated charges
2     for goods or services;
3         (2) issuing credits, refunding through inter-fund
4     transfers, or reducing future inter-fund transfers during
5     the subsequent fiscal year for all user agency payments or
6     authorized inter-fund transfers received during the prior
7     fiscal year which were in excess of the final amounts owed
8     by the user agency for that period; and
9         (3) issuing catch-up billings to user agencies during
10     the subsequent fiscal year for amounts remaining due when
11     payments or authorized inter-fund transfers received from
12     the user agency during the prior fiscal year were less than
13     the total amount owed for that period.
14 User agencies are authorized to reimburse internal service
15 funds for catch-up billings by vouchers drawn against their
16 respective appropriations for the fiscal year in which the
17 catch-up billing was issued or by increasing an authorized
18 inter-fund transfer during the current fiscal year. For the
19 purposes of this Act, "inter-fund transfers" means transfers
20 without the use of the voucher-warrant process, as authorized
21 by Section 9.01 of the State Comptroller Act.
22 (Source: P.A. 95-331, eff. 8-21-07.)
 
23
ARTICLE 97. SEVERABILITY

 
24     Section 97-1. Severability. The provisions of this Act are

 

 

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1 severable under Section 1.31 of the Statute on Statutes.
 
2
ARTICLE 99. EFFECTIVE DATE

 
3     Section 99-1. Effective date. This Act takes effect upon
4 becoming law.".