SB0324 96TH GENERAL ASSEMBLY

LRB096 08002 RCE 18106 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0324

Introduced 2/6/2009, by Sen. Jeffrey M. Schoenberg

SYNOPSIS AS INTRODUCED:

30 ILCS 340/1.2 new
30 ILCS 340/2	from Ch. 120, par. 407
30 ILCS 340/3	from Ch. 120, par. 408

Amends the Short Term Borrowing Act. Authorizes the Governor, Comptroller, and Treasurer to borrow principal amounts not to exceed a total of $1,500,000,000, at any time and from time to time outstanding, to be applied to the purposes of paying hospital access improvement payments under the Public Aid Code and in order to obtain all funds available to the State under federal economic stimulus and recovery programs, together with paying debts and associated expenses incurred in connection with the borrowing. Provides that all moneys so borrowed shall be borrowed for a period not to exceed one year. Effective immediately.

FISCAL NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Short Term Borrowing Act is amended by changing Sections 2 and 3 and by adding Section 1.2 as follows:

(30 ILCS 340/1.2 new)

Sec. 1.2. Borrowing authorized. Borrowing pursuant to this Section is authorized under subsection (b) of Section 9 of Article IX of the Illinois Constitution. The purposes of the borrowing shall be to pay hospital access improvement payments pursuant to Section 5A-12.1 of the Illinois Public Aid Code (305 ILCS 5/5A-12.1) and to obtain any additional federal funds available to the State under federal economic stimulus and recovery programs enacted by the 111th United States Congress. The Governor, Comptroller, and Treasurer may contract debts under this Section for principal amounts not to exceed a total of $1,500,000,000, at any time and from time to time outstanding. Moneys thus borrowed shall be applied to the purposes of paying the hospital access improvement payments and in order to obtain all available federal funds, together with paying debts and associated expenses incurred in connection with the borrowing. All moneys so borrowed shall be borrowed for a period not to exceed one year.

(30 ILCS 340/2) (from Ch. 120, par. 407)

Sec. 2. Sale of certificates. For borrowing authorized under Sections 1, and 1.1, and 1.2 of this Act, certificates may be issued and sold from time to time, in one or more series, in amounts, at prices and at interest rates, all as directed by the Governor, Comptroller, and Treasurer. Bidders shall submit sealed bids to the Director of the Governor's Office of Management and Budget upon such terms as shall be approved by the Governor, Comptroller, and Treasurer after such notice as shall be determined to be reasonable by the Director of the Governor's Office of Management and Budget. The loan shall be awarded to the bidder offering the lowest effective rate of interest not exceeding the maximum rate authorized by the Bond Authorization Act as amended at the time of the making of the contract.

With respect to instruments for the payment of money issued under this Section either before, on, or after the effective date of this amendatory Act of 1989, it is and always has been the intention of the General Assembly (i) that the Omnibus Bond Acts are and always have been supplementary grants of power to issue instruments in accordance with the Omnibus Bond Acts, regardless of any provision of this Act that may appear to be or to have been more restrictive than those Acts, (ii) that the provisions of this Section are not a limitation on the supplementary authority granted by the Omnibus Bond Acts, and (iii) that instruments issued under this Section within the supplementary authority granted by the Omnibus Bond Acts are not invalid because of any provision of this Act that may appear to be or to have been more restrictive than those Acts.

(Source: P.A. 88-669, eff. 11-29-94; 93-1046, eff. 10-15-04.)

(30 ILCS 340/3) (from Ch. 120, par. 408)

Sec. 3. There shall be prepared under the direction of the officers named in this Act such form of bonds or certificates as they shall deem advisable, which, when issued, shall be signed by the Governor, Comptroller and Treasurer, and shall be recorded by the Comptroller in a book to be kept by him or her for that purpose. The interest and principal of such loan shall be paid by the treasurer out of the General Obligation Bond Retirement and Interest Fund.

There is hereby appropriated out of any money in the Treasury a sum sufficient for the payment of the interest and principal of any debts contracted under this Act.

The Governor, Comptroller, and Treasurer are authorized to order pursuant to the proceedings authorizing those debts the transfer of any moneys on deposit in the treasury into the General Obligation Bond Retirement and Interest Fund at times and in amounts they deem necessary to provide for the payment of that interest and principal.

The Comptroller is hereby authorized and directed to draw his warrant on the State Treasurer for the amount of all such payments.

The directive authorizing borrowing under Section 1, or 1.1, and 1.2 of this Act shall set forth a pro forma cash flow statement that identifies estimated monthly receipts and expenditures with identification of sources for repaying the borrowed funds.

All proceeds from any borrowing under this Act received by the State on or after June 10, 2004 and before July 1, 2004 shall be deposited into the Medicaid Provider Relief Fund.

(Source: P.A. 88-669, eff. 11-29-94; 93-674, eff. 6-10-04; 93-1046, eff. 10-15-04.)

Section 99. Effective date. This Act takes effect upon becoming law.