Full Text of SB0336 96th General Assembly
SB0336ham002 96TH GENERAL ASSEMBLY | Rep. Frank J. Mautino Filed: 1/10/2011
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| 1 | | AMENDMENT TO SENATE BILL 336
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 336, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The State Finance Act is amended by adding | 6 | | Sections 5.786, 5.787, 6z-85, 6z-86, and 6z-87 as follows: | 7 | | (30 ILCS 105/5.786 new) | 8 | | Sec. 5.786. General Obligation Restructuring Bond Fund. | 9 | | (30 ILCS 105/5.787 new) | 10 | | Sec. 5.787. General Obligation Restructuring Bond Debt | 11 | | Service Fund. | 12 | | (30 ILCS 105/6z-85 new) | 13 | | Sec. 6z-85. State General Obligation Restructuring Bonds. | 14 | | If and when the State issues any State General Obligation |
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| 1 | | Restructuring Bonds defined in Section 7.6 of the General | 2 | | Obligation Bond Act, the Comptroller shall transfer into the | 3 | | State General Obligation Restructuring Bond Debt Service Fund | 4 | | the amounts set forth in this Section 6z-85. The Governor's | 5 | | Office of Management and Budget shall certify to the | 6 | | Comptroller and the Treasurer, on the date of issuance of any | 7 | | State General Obligation Restructuring Bond and thereafter by | 8 | | the last business day of each fiscal year, the amount of funds | 9 | | sufficient to pay the aggregate of the principal of, interest | 10 | | on, and premium, if any, on State General Obligation | 11 | | Restructuring Bonds payable with respect to the prospective | 12 | | fiscal year (or, in the case of a partial fiscal year, for the | 13 | | remainder of that fiscal year). Interest payable on variable | 14 | | rate bonds shall be calculated at the maximum rate of interest | 15 | | that may be payable for the relevant period, after taking into | 16 | | account any credits permitted in the related indenture or other | 17 | | instrument against the amount of interest required to be | 18 | | appropriated for that period pursuant to subsection (c) of | 19 | | Section 14 of the General Obligation Bond Act. Commencing with | 20 | | the first business day of the fiscal year to which such | 21 | | certification relates (or, in the case of a partial fiscal | 22 | | year, the first business day of the month following the month | 23 | | in which State General Obligation Restructuring Bonds were | 24 | | issued) and continuing on a monthly basis for each successive | 25 | | month thereafter, the Treasurer and the Comptroller shall | 26 | | transfer $129,000,000 into the State General Obligation |
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| 1 | | Restructuring Bond Debt Service Fund. The Comptroller shall | 2 | | continue making monthly transfers into the State General | 3 | | Obligation Restructuring Bond Debt Service Fund until such time | 4 | | as the aggregate amount of funds transferred into the State | 5 | | General Obligation Restructuring Bond Debt Service Fund in a | 6 | | fiscal year (or partial period) equals the amount of funds | 7 | | necessary to service the debt for such fiscal year (or partial | 8 | | period) on the Bonds, as certified by the Governor's Office of | 9 | | Management and Budget. Such amounts shall be set aside and used | 10 | | for the purpose of paying and discharging the principal and | 11 | | interest on such bonds when due and payable and for no other | 12 | | purpose. Interest on Bonds for which moneys have already been | 13 | | deposited into the capitalized interest account within the | 14 | | General Obligation Bond Retirement and Interest Fund shall not | 15 | | be included in the calculation of the amounts to be transferred | 16 | | under this subsection. | 17 | | (30 ILCS 105/6z-86 new) | 18 | | Sec. 6z-86. General Obligation Restructuring Bond Fund. | 19 | | The General Obligation Restructuring Bond Fund is created as a | 20 | | special fund in the State treasury for the purpose of receiving | 21 | | and disbursing moneys in accordance with Section 7.6 of the | 22 | | General Obligation Bond Act. All money in the General | 23 | | Obligation Restructuring Bond Fund must be used to make the | 24 | | transfers and payments required under that Section. |
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| 1 | | (30 ILCS 105/6z-87 new) | 2 | | Sec. 6z-87. General Obligation Restructuring Bond Debt | 3 | | Service Fund. The General Obligation Restructuring Bond Debt | 4 | | Service Fund is created as a special fund in the State | 5 | | treasury. | 6 | | Section 10. The General Obligation Bond Act is amended by | 7 | | changing Sections 2, 2.5, 8, 9, 12, 13, 14, and 15 and by | 8 | | adding Section 7.6 as follows: | 9 | | (30 ILCS 330/2) (from Ch. 127, par. 652) | 10 | | Sec. 2. Authorization for Bonds. The State of Illinois is | 11 | | authorized to
issue, sell and provide for the retirement of | 12 | | General Obligation Bonds of
the State of Illinois for the | 13 | | categories and specific purposes expressed in
Sections 2 | 14 | | through 8 of this Act, in the total amount of $45,967,777,443 | 15 | | $37,217,777,443 $36,967,777,443 . | 16 | | The bonds authorized in this Section 2 and in Section 16 of | 17 | | this Act are
herein called "Bonds". | 18 | | Of the total amount of Bonds authorized in this Act, up to | 19 | | $2,200,000,000
in aggregate original principal amount may be | 20 | | issued and sold in accordance
with the Baccalaureate Savings | 21 | | Act in the form of General Obligation
College Savings Bonds. | 22 | | Of the total amount of Bonds authorized in this Act, up to | 23 | | $300,000,000 in
aggregate original principal amount may be | 24 | | issued and sold in accordance
with the Retirement Savings Act |
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| 1 | | in the form of General Obligation
Retirement Savings Bonds. | 2 | | Of the total amount of Bonds authorized in this Act, the | 3 | | additional
$10,000,000,000 authorized by Public Act 93-2 and | 4 | | the $3,466,000,000 authorized by Public Act 96-43 shall be used | 5 | | solely as provided in Section 7.2. | 6 | | Of the total amount of Bonds authorized in this Act, | 7 | | $8,750,000,000 of the additional amount of Bonds authorized by | 8 | | this amendatory Act of the 96th General Assembly shall be used | 9 | | solely as provided in Section 7.6 and shall be issued by July | 10 | | 1, 2012. | 11 | | The issuance and sale of Bonds pursuant to the General | 12 | | Obligation Bond
Act is an economical and efficient method of | 13 | | financing the long-term capital needs of
the State. This Act | 14 | | will permit the issuance of a multi-purpose General
Obligation | 15 | | Bond with uniform terms and features. This will not only lower
| 16 | | the cost of registration but also reduce the overall cost of | 17 | | issuing debt
by improving the marketability of Illinois General | 18 | | Obligation Bonds. | 19 | | (Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09; 96-36, | 20 | | eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10; | 21 | | 96-1000, eff. 7-2-10; revised 9-3-10.) | 22 | | (30 ILCS 330/2.5) | 23 | | Sec. 2.5. Limitation on issuance of Bonds. | 24 | | (a) Except as provided in subsections subsection (b) and | 25 | | (c) , no Bonds may be issued if, after the issuance, in the next |
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| 1 | | State fiscal year after the issuance of the Bonds, the amount | 2 | | of debt service (including principal, whether payable at | 3 | | maturity or pursuant to mandatory sinking fund installments, | 4 | | and interest) on all then-outstanding Bonds, other than Bonds | 5 | | authorized by this amendatory Act of the 96th General Assembly, | 6 | | would exceed 7% of the aggregate appropriations from the | 7 | | general funds (which consist of the General Revenue Fund, the | 8 | | Common School Fund, the General Revenue Common School Special | 9 | | Account Fund, and the Education Assistance Fund) and the Road | 10 | | Fund for the fiscal year immediately prior to the fiscal year | 11 | | of the issuance. | 12 | | (b) If the Comptroller and Treasurer each consent in | 13 | | writing, Bonds may be issued even if the issuance does not | 14 | | comply with subsection (a). | 15 | | (c) Subsection (a) shall not apply to bonds authorized in | 16 | | Section 7.6, and the debt service, including principal, whether | 17 | | payable at maturity or pursuant to mandatory sinking fund | 18 | | installments, and interest, on Bonds authorized in Section 7.6 | 19 | | shall be excluded from the calculation set forth in subsection | 20 | | (a).
| 21 | | (Source: P.A. 96-43, eff. 7-15-09.) | 22 | | (30 ILCS 330/7.6 new) | 23 | | Sec. 7.6. State General Obligation Restructuring Bonds. | 24 | | (a) The amount of $8,750,000,000 of Bonds authorized by | 25 | | this amendatory Act of the 96th General Assembly is authorized |
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| 1 | | to be used for the purposes of (i) paying, from time to time, | 2 | | vouchers that are at least 60 days past due; (ii) paying | 3 | | medical expenses and other obligations incurred by the State | 4 | | under its health plans and programs; (iii) paying corporate | 5 | | income tax refunds; and (iv) paying other unfunded liabilities | 6 | | of the State as incurred from time to time. | 7 | | (b) As used in this Act, "State General Obligation | 8 | | Restructuring Bonds" means Bonds authorized by this amendatory | 9 | | Act of the 96th General Assembly and issued under this Act for | 10 | | the purposes authorized in this Section. References to Bonds | 11 | | authorized under this Section 7.6 mean Bonds, the proceeds of | 12 | | which are to be used as authorized in subsection (a). | 13 | | (c) The proceeds of State General Obligation Restructuring | 14 | | Bonds, less the amounts authorized in the Bond Sale Order to be | 15 | | deposited directly into the capitalized interest account of the | 16 | | General Obligation Bond Retirement and Interest Fund or | 17 | | otherwise directly paid out for bond sale expenses under | 18 | | Section 8, shall be deposited into the General Obligation | 19 | | Restructuring Bond Fund, and the Comptroller and the Treasurer | 20 | | shall, as soon as practical, (i) make transfers from the | 21 | | General Obligation Restructuring Bond Fund to the General | 22 | | Revenue Fund for the purpose of making the payments | 23 | | contemplated by this Section and (ii) make such payments.
| 24 | | (30 ILCS 330/8) (from Ch. 127, par. 658)
| 25 | | Sec. 8. Bond sale expenses. |
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| 1 | | (a)
An amount not to exceed
0.5 percent of the
principal | 2 | | amount of the proceeds of sale of each bond sale is authorized
| 3 | | to be used to pay the reasonable costs of issuance and sale, | 4 | | including, without limitation, underwriter's discounts and | 5 | | fees, but excluding bond insurance,
of State of
Illinois | 6 | | general obligation bonds authorized and sold pursuant to this | 7 | | Act, provided that no salaries of State employees or other | 8 | | State office operating expenses shall be paid out of | 9 | | non-appropriated proceeds, provided further that the percent | 10 | | shall be 1.0% for each sale of "Build America Bonds" or | 11 | | "Qualified School Construction Bonds" as defined in | 12 | | subsections (d) and (e) of Section 9, respectively , and for | 13 | | each sale of Bonds authorized by Section 7.6 . The Governor's | 14 | | Office of Management and Budget shall compile a summary of all | 15 | | costs of issuance on each sale (including both costs paid out | 16 | | of proceeds and those paid out of appropriated funds) and post | 17 | | that summary on its web site within 20 business days after the | 18 | | issuance of
the Bonds. The summary shall include, as | 19 | | applicable, the respective percentages of participation and | 20 | | compensation of each underwriter that is a member of the | 21 | | underwriting syndicate, legal counsel, financial advisors, and | 22 | | other professionals for the bond issue and an identification of | 23 | | all costs of issuance paid to minority owned businesses, female | 24 | | owned businesses, and businesses owned by persons with | 25 | | disabilities. The terms "minority owned businesses", "female | 26 | | owned businesses", and "business owned by a person with a |
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| 1 | | disability" have the meanings given to those terms in the | 2 | | Business Enterprise for Minorities, Females, and Persons with | 3 | | Disabilities Act. That posting shall be maintained on the web | 4 | | site for a period of at least 30 days. In addition, the | 5 | | Governor's Office of Management and Budget shall provide a | 6 | | written copy of each summary of costs to the Speaker and | 7 | | Minority Leader of the House of Representatives, the President | 8 | | and Minority Leader of the Senate, and the Commission on | 9 | | Government Forecasting and Accountability within 20 business | 10 | | days after each issuance of the Bonds. In addition, the | 11 | | Governor's Office of Management and Budget shall provide copies | 12 | | of all contracts under which any costs of issuance are paid or | 13 | | to be paid to the Commission on Government Forecasting and | 14 | | Accountability within 20 business days after the issuance of | 15 | | Bonds for which those costs are paid or to be paid. Instead of | 16 | | filing a second or subsequent copy of the same contract, the | 17 | | Governor's Office of Management and Budget may file a statement | 18 | | that specified costs are paid under specified contracts filed | 19 | | earlier with the Commission. | 20 | | (b) The Director of the Governor's Office of Management and | 21 | | Budget shall not, in connection with the issuance of Bonds, | 22 | | contract with any underwriter, financial advisor, or attorney | 23 | | unless that underwriter, financial advisor, or attorney | 24 | | certifies that the underwriter, financial advisor, or attorney | 25 | | has not and will not pay a contingent fee, whether directly or | 26 | | indirectly, to a third party for having promoted the selection |
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| 1 | | of the underwriter, financial advisor, or attorney for that | 2 | | contract. In the event that the Governor's Office of Management | 3 | | and Budget determines that an underwriter, financial advisor, | 4 | | or attorney has filed a false certification with respect to the | 5 | | payment of contingent fees, the Governor's Office of Management | 6 | | and Budget shall not contract with that underwriter, financial | 7 | | advisor, or attorney, or with any firm employing any person who | 8 | | signed false certifications, for a period of 2 calendar years, | 9 | | beginning with the date the determination is made. The validity | 10 | | of Bonds issued under such circumstances of violation pursuant | 11 | | to this Section shall not be affected.
| 12 | | (Source: P.A. 96-828, eff. 12-2-09.)
| 13 | | (30 ILCS 330/9) (from Ch. 127, par. 659)
| 14 | | Sec. 9. Conditions for Issuance and Sale of Bonds - | 15 | | Requirements for
Bonds. | 16 | | (a) Except as otherwise provided in this subsection and as | 17 | | provided for in subsection (f) , Bonds shall be issued and sold | 18 | | from time to time, in one or
more series, in such amounts and | 19 | | at such prices as may be directed by the
Governor, upon | 20 | | recommendation by the Director of the
Governor's Office of | 21 | | Management and Budget.
Bonds shall be in such form (either | 22 | | coupon, registered or book entry), in
such denominations, | 23 | | payable within 25 years from their date, subject to such
terms | 24 | | of redemption with or without premium, bear interest payable at
| 25 | | such times and at such fixed or variable rate or rates, and be |
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| 1 | | dated
as shall be fixed and determined by the Director of
the
| 2 | | Governor's Office of Management and Budget
in the order | 3 | | authorizing the issuance and sale
of any series of Bonds, which | 4 | | order shall be approved by the Governor
and is herein called a | 5 | | "Bond Sale Order"; provided however, that interest
payable at | 6 | | fixed or variable rates shall not exceed that permitted in the
| 7 | | Bond Authorization Act, as now or hereafter amended. Bonds | 8 | | shall be
payable at such place or places, within or without the | 9 | | State of Illinois, and
may be made registrable as to either | 10 | | principal or as to both principal and
interest, as shall be | 11 | | specified in the Bond Sale Order. Bonds may be callable
or | 12 | | subject to purchase and retirement or tender and remarketing as | 13 | | fixed
and determined in the Bond Sale Order. Bonds, other than | 14 | | Bonds issued under Section 3 of this Act for the costs | 15 | | associated with the purchase and implementation of information | 16 | | technology, (i) except for refunding Bonds satisfying the | 17 | | requirements of Section 16 of this Act and sold during fiscal | 18 | | year 2009, 2010, or 2011, must be issued with principal or | 19 | | mandatory redemption amounts in equal amounts, with the first | 20 | | maturity issued occurring within the fiscal year in which the | 21 | | Bonds are issued or within the next succeeding fiscal year and | 22 | | (ii) must mature or be subject to mandatory redemption each | 23 | | fiscal year thereafter up to 25 years, except for refunding | 24 | | Bonds satisfying the requirements of Section 16 of this Act and | 25 | | sold during fiscal year 2009, 2010, or 2011 which must mature | 26 | | or be subject to mandatory redemption each fiscal year |
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| 1 | | thereafter up to 16 years. Bonds issued under Section 3 of this | 2 | | Act for the costs associated with the purchase and | 3 | | implementation of information technology must be issued with | 4 | | principal or mandatory redemption amounts in equal amounts, | 5 | | with the first maturity issued occurring with the fiscal year | 6 | | in which the respective bonds are issued or with the next | 7 | | succeeding fiscal year, with the respective bonds issued | 8 | | maturing or subject to mandatory redemption each fiscal year | 9 | | thereafter up to 10 years. Notwithstanding any provision of | 10 | | this Act to the contrary, the Bonds authorized by Public Act | 11 | | 96-43 shall be payable within 5 years from their date and must | 12 | | be issued with principal or mandatory redemption amounts in | 13 | | equal amounts, with payment of principal or mandatory | 14 | | redemption beginning in the first fiscal year following the | 15 | | fiscal year in which the Bonds are issued.
| 16 | | In the case of any series of Bonds bearing interest at a | 17 | | variable interest
rate ("Variable Rate Bonds"), in lieu of | 18 | | determining the rate or rates at which
such series of Variable | 19 | | Rate Bonds shall bear interest and the price or prices
at which | 20 | | such Variable Rate Bonds shall be initially sold or remarketed | 21 | | (in the
event of purchase and subsequent resale), the Bond Sale | 22 | | Order may provide that
such interest rates and prices may vary | 23 | | from time to time depending on criteria
established in such | 24 | | Bond Sale Order, which criteria may include, without
| 25 | | limitation, references to indices or variations in interest | 26 | | rates as may, in
the judgment of a remarketing agent, be |
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| 1 | | necessary to cause Variable Rate Bonds
of such series to be | 2 | | remarketable from time to time at a price equal to their
| 3 | | principal amount, and may provide for appointment of a bank, | 4 | | trust company,
investment bank, or other financial institution | 5 | | to serve as remarketing agent
in that connection.
The Bond Sale | 6 | | Order may provide that alternative interest rates or provisions
| 7 | | for establishing alternative interest rates, different | 8 | | security or claim
priorities, or different call or amortization | 9 | | provisions will apply during
such times as Variable Rate Bonds | 10 | | of any series are held by a person providing
credit or | 11 | | liquidity enhancement arrangements for such Bonds as | 12 | | authorized in
subsection (b) of this Section.
The Bond Sale | 13 | | Order may also provide for such variable interest rates to be
| 14 | | established pursuant to a process generally known as an auction | 15 | | rate process
and may provide for appointment of one or more | 16 | | financial institutions to serve
as auction agents and | 17 | | broker-dealers in connection with the establishment of
such | 18 | | interest rates and the sale and remarketing of such Bonds.
| 19 | | (b) In connection with the issuance of any series of Bonds, | 20 | | the State may
enter into arrangements to provide additional | 21 | | security and liquidity for such
Bonds, including, without | 22 | | limitation, bond or interest rate insurance or
letters of | 23 | | credit, lines of credit, bond purchase contracts, or other
| 24 | | arrangements whereby funds are made available to retire or | 25 | | purchase Bonds,
thereby assuring the ability of owners of the | 26 | | Bonds to sell or redeem their
Bonds. The State may enter into |
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| 1 | | contracts and may agree to pay fees to persons
providing such | 2 | | arrangements, but only under circumstances where the Director | 3 | | of
the
Governor's Office of Management and Budget certifies | 4 | | that he or she reasonably expects the total
interest paid or to | 5 | | be paid on the Bonds, together with the fees for the
| 6 | | arrangements (being treated as if interest), would not, taken | 7 | | together, cause
the Bonds to bear interest, calculated to their | 8 | | stated maturity, at a rate in
excess of the rate that the Bonds | 9 | | would bear in the absence of such
arrangements.
| 10 | | The State may, with respect to Bonds issued or anticipated | 11 | | to be issued,
participate in and enter into arrangements with | 12 | | respect to interest rate
protection or exchange agreements, | 13 | | guarantees, or financial futures contracts
for the purpose of | 14 | | limiting, reducing, or managing interest rate exposure.
The | 15 | | authority granted under this paragraph, however, shall not | 16 | | increase the principal amount of Bonds authorized to be issued | 17 | | by law. The arrangements may be executed and delivered by the | 18 | | Director
of the
Governor's Office of Management and Budget on | 19 | | behalf of the State. Net payments for such
arrangements shall | 20 | | constitute interest on the Bonds and shall be paid from the
| 21 | | General Obligation Bond Retirement and Interest Fund. The | 22 | | Director of the
Governor's Office of Management and Budget | 23 | | shall at least annually certify to the Governor and
the
State | 24 | | Comptroller his or her estimate of the amounts of such net | 25 | | payments to
be included in the calculation of interest required | 26 | | to be paid by the State.
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| 1 | | (c) Prior to the issuance of any Variable Rate Bonds | 2 | | pursuant to
subsection (a), the Director of the
Governor's | 3 | | Office of Management and Budget shall adopt an
interest rate | 4 | | risk management policy providing that the amount of the State's
| 5 | | variable rate exposure with respect to Bonds shall not exceed | 6 | | 20%. This policy
shall remain in effect while any Bonds are | 7 | | outstanding and the issuance of
Bonds
shall be subject to the | 8 | | terms of such policy. The terms of this policy may be
amended | 9 | | from time to time by the Director of the
Governor's Office of | 10 | | Management and Budget but in no
event shall any amendment cause | 11 | | the permitted level of the State's variable
rate exposure with | 12 | | respect to Bonds to exceed 20%.
| 13 | | (d) "Build America Bonds" in this Section means Bonds | 14 | | authorized by Section 54AA of the Internal Revenue Code of | 15 | | 1986, as amended ("Internal Revenue Code"), and bonds issued | 16 | | from time to time to refund or continue to refund "Build | 17 | | America Bonds". | 18 | | (e) Notwithstanding any other provision of this Section, | 19 | | Qualified School Construction Bonds shall be issued and sold | 20 | | from time to time, in one or more series, in such amounts and | 21 | | at such prices as may be directed by the Governor, upon | 22 | | recommendation by the Director of the Governor's Office of | 23 | | Management and Budget. Qualified School Construction Bonds | 24 | | shall be in such form (either coupon, registered or book | 25 | | entry), in such denominations, payable within 25 years from | 26 | | their date, subject to such terms of redemption with or without |
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| 1 | | premium, and if the Qualified School Construction Bonds are | 2 | | issued with a supplemental coupon, bear interest payable at | 3 | | such times and at such fixed or variable rate or rates, and be | 4 | | dated as shall be fixed and determined by the Director of the | 5 | | Governor's Office of Management and Budget in the order | 6 | | authorizing the issuance and sale of any series of Qualified | 7 | | School Construction Bonds, which order shall be approved by the | 8 | | Governor and is herein called a "Bond Sale Order"; except that | 9 | | interest payable at fixed or variable rates, if any, shall not | 10 | | exceed that permitted in the Bond Authorization Act, as now or | 11 | | hereafter amended. Qualified School Construction Bonds shall | 12 | | be payable at such place or places, within or without the State | 13 | | of Illinois, and may be made registrable as to either principal | 14 | | or as to both principal and interest, as shall be specified in | 15 | | the Bond Sale Order. Qualified School Construction Bonds may be | 16 | | callable or subject to purchase and retirement or tender and | 17 | | remarketing as fixed and determined in the Bond Sale Order. | 18 | | Qualified School Construction Bonds must be issued with | 19 | | principal or mandatory redemption amounts or sinking fund | 20 | | payments into the General Obligation Bond Retirement and | 21 | | Interest Fund (or subaccount therefor) in equal amounts, with | 22 | | the first maturity issued, mandatory redemption payment or | 23 | | sinking fund payment occurring within the fiscal year in which | 24 | | the Qualified School Construction Bonds are issued or within | 25 | | the next succeeding fiscal year, with Qualified School | 26 | | Construction Bonds issued maturing or subject to mandatory |
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| 1 | | redemption or with sinking fund payments thereof deposited each | 2 | | fiscal year thereafter up to 25 years. Sinking fund payments | 3 | | set forth in this subsection shall be permitted only to the | 4 | | extent authorized in Section 54F of the Internal Revenue Code | 5 | | or as otherwise determined by the Director of the Governor's | 6 | | Office of Management and Budget. "Qualified School | 7 | | Construction Bonds" in this subsection means Bonds authorized | 8 | | by Section 54F of the Internal Revenue Code and for bonds | 9 | | issued from time to time to refund or continue to refund such | 10 | | "Qualified School Construction Bonds". | 11 | | (f) Notwithstanding any other provision of this Section, | 12 | | State General Obligation Restructuring Bonds shall be issued | 13 | | and sold from time to time, in one or more series, in such | 14 | | amounts and at such prices as may be directed by the Governor, | 15 | | upon recommendation by the Director of the Governor's Office of | 16 | | Management and Budget. State General Obligation Restructuring | 17 | | Bonds shall be in such form, either coupon, registered or book | 18 | | entry, in such denominations, payable within 15 years from | 19 | | their date, subject to the following terms of redemption with | 20 | | or without premium and in accordance with the following | 21 | | schedule, except the following amounts shall be prorated if | 22 | | less than the total additional amount of State General | 23 | | Obligation Restructuring Bonds authorized by this amendatory | 24 | | Act of the 96th General Assembly are issued: | 25 | | For fiscal year 2012, $100,000,000; | 26 | | For fiscal year 2013, $100,000,000; |
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| 1 | | For fiscal year 2014, $200,000,000; | 2 | | For fiscal year 2015, $450,000,000; | 3 | | For fiscal years 2016 through 2025, $765,000,000; and | 4 | | For fiscal year 2026, $250,000,000. | 5 | | The State General Obligation Restructuring Bonds shall bear | 6 | | interest payable at such times and at such fixed or variable | 7 | | rate or rates, and be dated as shall be fixed and determined by | 8 | | the Director of the Governor's Office of Management and Budget | 9 | | in the order authorizing the issuance and sale of any series of | 10 | | State General Obligation Restructuring Bonds, which order | 11 | | shall be approved by the Governor and is herein called a "Bond | 12 | | Sale Order"; provided however, that interest payable at fixed | 13 | | or variable rates shall not exceed that permitted in the Bond | 14 | | Authorization Act, as now or hereafter amended. State General | 15 | | Obligation Restructuring Bonds shall be payable at such place | 16 | | or places, within or without the State of Illinois, and may be | 17 | | made registrable as to either principal or as to both principal | 18 | | and interest, as shall be specified in the Bond Sale Order. | 19 | | State General Obligation Restructuring Bonds may be callable or | 20 | | subject to purchase and retirement or tender and remarketing as | 21 | | fixed and determined in the Bond Sale Order. | 22 | | (Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43, | 23 | | eff. 7-15-09; 96-828, eff. 12-2-09.)
| 24 | | (30 ILCS 330/12) (from Ch. 127, par. 662)
| 25 | | Sec. 12. Allocation of Proceeds from Sale of Bonds.
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| 1 | | (a) Proceeds from the sale of Bonds, authorized by Section | 2 | | 3 of this Act,
shall be deposited in the separate fund known as | 3 | | the Capital Development Fund.
| 4 | | (b) Proceeds from the sale of Bonds, authorized by | 5 | | paragraph (a) of Section
4 of this Act, shall be deposited in | 6 | | the separate fund known as the
Transportation Bond, Series A | 7 | | Fund.
| 8 | | (c) Proceeds from the sale of Bonds, authorized by | 9 | | paragraphs (b) and (c)
of Section 4 of this Act, shall be | 10 | | deposited in the separate fund known
as the Transportation | 11 | | Bond, Series B Fund.
| 12 | | (c-1) Proceeds from the sale of Bonds, authorized by | 13 | | paragraph (d) of Section 4 of this Act, shall be deposited into | 14 | | the Transportation Bond Series D Fund, which is hereby created. | 15 | | (d) Proceeds from the sale of Bonds, authorized by Section | 16 | | 5 of this
Act, shall be deposited in the separate fund known as | 17 | | the School Construction
Fund.
| 18 | | (e) Proceeds from the sale of Bonds, authorized by Section | 19 | | 6 of this Act,
shall be deposited in the separate fund known as | 20 | | the Anti-Pollution Fund.
| 21 | | (f) Proceeds from the sale of Bonds, authorized by Section | 22 | | 7 of this Act,
shall be deposited in the separate fund known as | 23 | | the Coal Development Fund.
| 24 | | (f-2) Proceeds from the sale of Bonds, authorized by | 25 | | Section 7.2 of this
Act, shall be deposited as set forth in | 26 | | Section 7.2.
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| 1 | | (f-5) Proceeds from the sale of Bonds, authorized by | 2 | | Section 7.5 of this
Act, shall be deposited as set forth in | 3 | | Section 7.5. | 4 | | (f-6) Proceeds from the sale of Bonds, authorized by | 5 | | Section 7.6 of this Act, shall be deposited as set forth in | 6 | | Section 7.6.
| 7 | | (g) Proceeds from the sale of Bonds, authorized by Section | 8 | | 8 of this Act,
shall be deposited in
the Capital Development | 9 | | Fund.
| 10 | | (h) Subsequent to the issuance of any Bonds for the | 11 | | purposes described
in Sections 2 through 8 of this Act, the | 12 | | Governor and the Director of the
Governor's Office of | 13 | | Management and Budget may provide for the reallocation of | 14 | | unspent proceeds
of such Bonds to any other purposes authorized | 15 | | under said Sections of this
Act, subject to the limitations on | 16 | | aggregate principal amounts contained
therein. Upon any such | 17 | | reallocation, such unspent proceeds shall be
transferred to the | 18 | | appropriate funds as determined by reference to
paragraphs (a) | 19 | | through (g) of this Section.
| 20 | | (Source: P.A. 96-36, eff. 7-13-09.)
| 21 | | (30 ILCS 330/13) (from Ch. 127, par. 663)
| 22 | | Sec. 13. Appropriation of Proceeds from Sale of Bonds.
| 23 | | (a) At all times, the proceeds from the sale of Bonds | 24 | | issued pursuant
to this Act are subject to appropriation by the | 25 | | General Assembly and,
except as provided in Sections Section |
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| 1 | | 7.2 and 7.6 , may be obligated or expended only
with the written | 2 | | approval of the Governor, in such amounts, at such times,
and | 3 | | for such purposes as the respective
State agencies, as defined | 4 | | in Section 1-7 of the Illinois State Auditing
Act, as amended, | 5 | | deem necessary or desirable for the specific purposes
| 6 | | contemplated in Sections 2 through 8 of this Act.
| 7 | | (b) Proceeds from the sale of Bonds for the purpose of | 8 | | development of
coal and alternative forms of energy shall be | 9 | | expended in such amounts and
at such times as the Department of | 10 | | Commerce and Economic Opportunity, with the
advice and | 11 | | recommendation of the Illinois Coal Development Board for coal
| 12 | | development projects, may deem necessary and desirable for the | 13 | | specific
purpose contemplated by Section 7 of this Act. In | 14 | | considering the approval
of projects to be funded, the | 15 | | Department of Commerce and
Economic Opportunity shall give
| 16 | | special
consideration to projects designed to remove sulfur and | 17 | | other pollutants in
the preparation and utilization of coal, | 18 | | and in the use and operation of
electric utility generating | 19 | | plants and industrial facilities which utilize
Illinois coal as | 20 | | their primary source of fuel.
| 21 | | (c) Except as directed in subsection (c-1) or (c-2), any | 22 | | monies received by any officer or employee of the state
| 23 | | representing a reimbursement of expenditures previously paid | 24 | | from general
obligation bond proceeds shall be deposited into | 25 | | the General Obligation
Bond Retirement and Interest Fund | 26 | | authorized in Section 14 of this Act.
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| 1 | | (c-1) Any money received by the Department of | 2 | | Transportation as reimbursement for expenditures for high | 3 | | speed rail purposes pursuant to appropriations from the | 4 | | Transportation Bond, Series B Fund for (i) CREATE (Chicago | 5 | | Region Environmental and Transportation Efficiency), (ii) High | 6 | | Speed Rail, or (iii) AMTRAK projects authorized by the federal | 7 | | government under the provisions of the American Recovery and | 8 | | Reinvestment Act of 2009 or the Safe Accountable Flexible | 9 | | Efficient Transportation Equity Act—A Legacy for Users | 10 | | (SAFETEA-LU), or any successor federal transportation | 11 | | authorization Act, shall be deposited into the Federal High | 12 | | Speed Rail Trust Fund. | 13 | | (c-2) Any money received by the Department of | 14 | | Transportation as reimbursement for expenditures for transit | 15 | | capital purposes pursuant to appropriations from the | 16 | | Transportation Bond, Series B Fund for projects authorized by | 17 | | the federal government under the provisions of the American | 18 | | Recovery and Reinvestment Act of 2009 or the Safe Accountable | 19 | | Flexible Efficient Transportation Equity Act—A Legacy for | 20 | | Users (SAFETEA-LU), or any successor federal transportation | 21 | | authorization Act, shall be deposited into the Federal Mass | 22 | | Transit Trust Fund. | 23 | | (Source: P.A. 96-1488, eff. 12-30-10.)
| 24 | | (30 ILCS 330/14) (from Ch. 127, par. 664)
| 25 | | Sec. 14. Repayment.
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| 1 | | (a) To provide for the manner of repayment of Bonds, the | 2 | | Governor shall
include an appropriation in each annual State | 3 | | Budget of monies in such amount
as shall be necessary and | 4 | | sufficient, for the period covered by such budget,
to pay the | 5 | | interest, as it shall accrue, on all Bonds issued under this | 6 | | Act,
to pay and discharge the principal of such Bonds as shall, | 7 | | by their terms,
fall due during such period, to pay a premium, | 8 | | if any, on Bonds to be
redeemed prior to the maturity date, and | 9 | | to pay sinking fund payments in connection with Qualified | 10 | | School Construction Bonds authorized by subsection (e) of | 11 | | Section 9. Amounts included in such appropriations
for the | 12 | | payment of interest on variable rate bonds shall be the maximum | 13 | | amounts
of interest that may be payable for the period covered | 14 | | by the budget, after
taking into account any credits permitted | 15 | | in the related indenture or other
instrument against the amount | 16 | | of such interest required to be appropriated for
such period. | 17 | | Amounts included in such appropriations for the payment of
| 18 | | interest shall include the amounts certified by the Director of | 19 | | the
Governor's Office of Management and Budget under subsection | 20 | | (b) of Section 9 of this Act.
| 21 | | (b) A separate fund in the State Treasury called the | 22 | | "General Obligation
Bond Retirement and Interest Fund" is | 23 | | hereby created.
| 24 | | (c) The General Assembly shall annually make | 25 | | appropriations to pay the
principal of, interest on, and | 26 | | premium, if any, on Bonds sold under this
Act from the General |
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| 1 | | Obligation Bond Retirement and Interest Fund.
Amounts included | 2 | | in such appropriations for the payment of interest on
variable | 3 | | rate bonds shall be the maximum amounts of interest that may be
| 4 | | payable during the fiscal year, after taking into account any | 5 | | credits
permitted in the related indenture or other instrument | 6 | | against the amount
of such interest required to be appropriated | 7 | | for such period. Amounts included
in such appropriations for | 8 | | the payment of interest shall include the amounts
certified by | 9 | | the Director of the
Governor's Office of Management and Budget | 10 | | under subsection (b) of
Section 9 of this Act.
| 11 | | If for any reason there are insufficient funds in either | 12 | | the General
Revenue Fund , or the Road Fund , or the State | 13 | | General Obligation Restructuring Bond Debt Service Fund to make
| 14 | | transfers to the General Obligation Bond Retirement and | 15 | | Interest Fund as
required by Section 15 of this Act, or if for | 16 | | any reason the General Assembly
fails to make appropriations | 17 | | sufficient to pay the principal of, interest on,
and premium, | 18 | | if any, on the Bonds, as the same by their terms shall become | 19 | | due,
this Act shall constitute an irrevocable and continuing | 20 | | appropriation of all
amounts necessary for that purpose, and | 21 | | the irrevocable and continuing
authority for and direction to | 22 | | the State Treasurer and the Comptroller to make
the necessary | 23 | | transfers, as directed by the Governor, out of and | 24 | | disbursements
from the revenues and funds of the
State.
| 25 | | (d) If, because of insufficient funds in either the General | 26 | | Revenue Fund , or the Road Fund, or the State General Obligation |
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| 1 | | Restructuring Bond Debt Service Fund, monies have been | 2 | | transferred to the General Obligation
Bond Retirement and | 3 | | Interest Fund, as required by subsection (c) of this
Section, | 4 | | this Act shall constitute the irrevocable and continuing | 5 | | authority
for and direction to the State Treasurer and | 6 | | Comptroller to reimburse these
funds of the State from the | 7 | | General Revenue Fund , or the Road Fund, or the State General | 8 | | Obligation Restructuring Bond Debt Service Fund, as
| 9 | | appropriate, by transferring, at such times and in such | 10 | | amounts, as directed by
the Governor, an amount to these funds | 11 | | equal to that transferred from them.
| 12 | | (Source: P.A. 96-828, eff. 12-2-09.)
| 13 | | (30 ILCS 330/15) (from Ch. 127, par. 665)
| 14 | | Sec. 15. Computation of Principal and Interest; transfers.
| 15 | | (a) Upon each delivery of Bonds authorized to be issued | 16 | | under this Act,
the Comptroller shall compute and certify to | 17 | | the Treasurer the total amount
of principal of, interest on, | 18 | | and premium, if any, on Bonds issued that will
be payable in | 19 | | order to retire such Bonds, the amount of principal of,
| 20 | | interest on and premium, if any, on such Bonds that will be | 21 | | payable on each
payment date according to the tenor of such | 22 | | Bonds during the then current and
each succeeding fiscal year, | 23 | | and the amount of sinking fund payments needed to be deposited | 24 | | in connection with Qualified School Construction Bonds | 25 | | authorized by subsection (e) of Section 9.
With respect to the |
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| 1 | | interest payable on variable rate bonds, such
certifications | 2 | | shall be calculated at the maximum rate of interest that
may be | 3 | | payable during the fiscal year, after taking into account any | 4 | | credits
permitted in the related indenture or other instrument | 5 | | against the amount
of such interest required to be appropriated | 6 | | for such period pursuant to
subsection (c) of Section 14 of | 7 | | this Act. With respect to the interest
payable, such | 8 | | certifications shall include the amounts certified by the
| 9 | | Director of the
Governor's Office of Management and Budget | 10 | | under subsection (b) of Section 9 of
this Act.
| 11 | | On or before the last day of each month the State Treasurer | 12 | | and Comptroller
shall transfer from (1) the Road Fund with | 13 | | respect to Bonds issued under
paragraph (a) of Section 4 of | 14 | | this Act or Bonds issued for the purpose of
refunding such | 15 | | bonds, (2) the State General Obligation Restructuring Bond Debt | 16 | | Service Fund with respect to Bonds issued under Section 7.6 of | 17 | | this Act or Bonds issued for the purpose of refunding such | 18 | | bonds, and (3) from (2) the General
Revenue Fund, with respect | 19 | | to all other Bonds issued under this Act, to the
General | 20 | | Obligation Bond Retirement and Interest Fund an amount | 21 | | sufficient to
pay the aggregate of the principal of, interest | 22 | | on, and premium, if any, on
Bonds payable, by their terms on | 23 | | the next payment date divided by the number of
full calendar | 24 | | months between the date of such Bonds and the first such | 25 | | payment
date, and thereafter, divided by the number of months | 26 | | between each succeeding
payment date after the first. Such |
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| 1 | | computations and transfers shall be
made for each series of | 2 | | Bonds issued and delivered. Interest payable on
variable rate | 3 | | bonds shall be calculated at the maximum rate of interest that
| 4 | | may be payable for the relevant period, after taking into | 5 | | account any credits
permitted in the related indenture or other | 6 | | instrument against the amount of
such interest required to be | 7 | | appropriated for such period pursuant to
subsection (c) of | 8 | | Section 14 of this Act. Computations of interest shall
include | 9 | | the amounts certified by the Director of the
Governor's Office | 10 | | of Management and Budget
under subsection (b) of Section 9 of | 11 | | this Act. Interest for which moneys
have already been deposited | 12 | | into the capitalized interest account within the
General | 13 | | Obligation Bond Retirement and Interest Fund shall not be | 14 | | included
in the calculation of the amounts to be transferred | 15 | | under this subsection. Notwithstanding any other provision in | 16 | | this Section, the transfer provisions provided in this | 17 | | paragraph shall not apply to transfers made in fiscal year 2010 | 18 | | with respect to Bonds issued in fiscal year 2010 pursuant to | 19 | | Section 7.2 of this Act. In the case of transfers made in | 20 | | fiscal year 2010 with respect to the Bonds issued in fiscal | 21 | | year 2010 pursuant to Section 7.2 of this Act, on or before the | 22 | | 15th day of the month prior to the required debt service | 23 | | payment, the State Treasurer and Comptroller shall transfer | 24 | | from the General Revenue Fund to the General Obligation Bond | 25 | | Retirement and Interest Fund an amount sufficient to pay the | 26 | | aggregate of the principal of, interest on, and premium, if |
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| 1 | | any, on the Bonds payable in that next month.
| 2 | | The transfer of monies herein and above directed is not | 3 | | required if monies
in the General Obligation Bond Retirement | 4 | | and Interest Fund are more than
the amount otherwise to be | 5 | | transferred as herein above provided, and if the
Governor or | 6 | | his authorized representative notifies the State Treasurer and
| 7 | | Comptroller of such fact in writing.
| 8 | | (b) After the effective date of this Act, the balance of, | 9 | | and monies
directed to be included in the Capital Development | 10 | | Bond Retirement and
Interest Fund, Anti-Pollution Bond | 11 | | Retirement and Interest Fund,
Transportation Bond, Series A | 12 | | Retirement and Interest Fund, Transportation
Bond, Series B | 13 | | Retirement and Interest Fund, and Coal Development Bond
| 14 | | Retirement and Interest Fund shall be transferred to and | 15 | | deposited in the
General Obligation Bond Retirement and | 16 | | Interest Fund. This Fund shall be
used to make debt service | 17 | | payments on the State's general obligation Bonds
heretofore | 18 | | issued which are now outstanding and payable from the Funds | 19 | | herein
listed as well as on Bonds issued under this Act.
| 20 | | (c) The unused portion of federal funds received for a | 21 | | capital
facilities project, as authorized by Section 3 of this | 22 | | Act, for which
monies from the Capital Development Fund have | 23 | | been expended shall be
deposited upon completion of the project | 24 | | in the General Obligation Bond
Retirement and Interest Fund. | 25 | | Any federal funds received as reimbursement
for the completed | 26 | | construction of a capital facilities project, as
authorized by |
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| 1 | | Section 3 of this Act, for which monies from the Capital
| 2 | | Development Fund have been expended shall be deposited in the | 3 | | General
Obligation Bond Retirement and Interest Fund.
| 4 | | (Source: P.A. 96-43, eff. 7-15-09; 96-828, eff. 12-2-09.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.".
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