Full Text of SB1673 97th General Assembly
SB1673ham011 97TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 1/8/2013
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| 1 | | AMENDMENT TO SENATE BILL 1673
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1673, AS AMENDED, | 3 | | with reference to page and line numbers of House Amendment No. | 4 | | 10, on page 1, in line 5, by changing "4 and 15" to "2, 4, 14, | 5 | | and 15"; and
| 6 | | on page 1, below line 5, by inserting the following:
| 7 | | "(5 ILCS 315/2) (from Ch. 48, par. 1602)
| 8 | | Sec. 2. Policy. It is the public policy of the State of | 9 | | Illinois
to grant public employees full
freedom of association, | 10 | | self-organization, and designation of representatives
of their | 11 | | own choosing for the purpose of negotiating wages, hours and | 12 | | other
conditions of employment or other mutual aid or | 13 | | protection.
| 14 | | It is the purpose of this Act to regulate labor relations | 15 | | between public
employers and employees, including the | 16 | | designation of employee representatives,
negotiation of wages, |
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| 1 | | hours and other conditions of employment, and resolution
of | 2 | | disputes arising under collective bargaining agreements.
| 3 | | It is the purpose of this Act to prescribe the legitimate | 4 | | rights of both
public employees and public employers, to | 5 | | protect the public health and safety
of the citizens of | 6 | | Illinois, and to provide peaceful and orderly procedures
for | 7 | | protection of the rights of all. To prevent labor strife and to | 8 | | protect
the public health and safety of the citizens of | 9 | | Illinois,
all collective bargaining disputes involving persons | 10 | | designated by the Board
as performing essential services and | 11 | | those persons defined herein as security employees
shall be | 12 | | submitted to impartial arbitrators, who shall be authorized to
| 13 | | issue awards in order to resolve such disputes ; except that | 14 | | such arbitration and awards shall not alter or affect the | 15 | | changes, the impact of the changes, or the implementation of | 16 | | the changes set forth in this amendatory Act of the 97th | 17 | | General Assembly, which are prohibited subjects of bargaining . | 18 | | It is the public policy
of the State of Illinois that where the | 19 | | right of employees to strike is
prohibited by law, it is | 20 | | necessary to afford an alternate, expeditious,
equitable and | 21 | | effective procedure for the resolution of labor disputes | 22 | | subject
to approval procedures mandated by this Act. To that | 23 | | end, the provisions
for such awards shall be liberally
| 24 | | construed.
| 25 | | (Source: P.A. 83-1012.)"; and
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| 1 | | on page 2, in line 3, after " Assembly ", by inserting " , which | 2 | | are prohibited subjects of bargaining "; and | 3 | | on page 2, in line 14, after " Assembly ", by inserting " , which | 4 | | are prohibited subjects of bargaining "; and | 5 | | on page 2, below line 25, by inserting the following:
| 6 | | "(5 ILCS 315/14) (from Ch. 48, par. 1614)
| 7 | | Sec. 14. Security Employee, Peace Officer and Fire Fighter | 8 | | Disputes.
| 9 | | (a) In the case of collective bargaining agreements | 10 | | involving units of
security employees of a public employer, | 11 | | Peace Officer Units, or units of
fire fighters or paramedics, | 12 | | and in the case of disputes under Section 18,
unless the | 13 | | parties mutually agree to some other time limit, mediation
| 14 | | shall commence 30 days prior to the expiration date of such | 15 | | agreement or
at such later time as the mediation services | 16 | | chosen under subsection (b) of
Section 12 can be provided to | 17 | | the parties. In the case of negotiations
for an initial | 18 | | collective bargaining agreement, mediation shall commence
upon | 19 | | 15 days notice from either party or at such later time as the
| 20 | | mediation services chosen pursuant to subsection (b) of Section | 21 | | 12 can be
provided to the parties. In mediation under this | 22 | | Section, if either party
requests the use of mediation services | 23 | | from the Federal Mediation and
Conciliation Service, the other |
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| 1 | | party shall either join in such request or
bear the additional | 2 | | cost of mediation services from another source. The
mediator | 3 | | shall have a duty to keep the Board informed on the progress of
| 4 | | the mediation. If any dispute has not been resolved within 15 | 5 | | days after
the first meeting of the parties and the mediator, | 6 | | or within such other
time limit as may be mutually agreed upon | 7 | | by the parties, either the
exclusive representative or employer | 8 | | may request of the other, in writing,
arbitration, and shall | 9 | | submit a copy of the request to the Board.
| 10 | | (b) Within 10 days after such a request for arbitration has | 11 | | been
made, the employer shall choose a delegate and
the | 12 | | employees' exclusive representative shall choose a delegate to | 13 | | a panel
of arbitration as provided in this Section. The | 14 | | employer and employees
shall forthwith advise the other and the | 15 | | Board of their selections.
| 16 | | (c) Within 7 days after the request of either party, the | 17 | | parties shall request a panel of impartial arbitrators from | 18 | | which they shall select the neutral chairman according to the | 19 | | procedures provided in this Section. If the parties have agreed | 20 | | to a contract that contains a grievance resolution procedure as | 21 | | provided in Section 8, the chairman shall be selected using | 22 | | their agreed contract procedure unless they mutually agree to | 23 | | another procedure. If the parties fail to notify the Board of | 24 | | their selection of neutral chairman within 7 days after receipt | 25 | | of the list of impartial arbitrators, the Board shall appoint, | 26 | | at random, a neutral chairman from the list. In the absence of |
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| 1 | | an agreed contract procedure for selecting an impartial | 2 | | arbitrator, either party may request a panel from the Board. | 3 | | Within 7 days of the request of either party, the Board shall | 4 | | select
from the Public Employees Labor Mediation Roster 7 | 5 | | persons who are on the
labor arbitration panels of either the | 6 | | American Arbitration Association or
the Federal Mediation and | 7 | | Conciliation Service, or who are members of the
National | 8 | | Academy of Arbitrators, as nominees for
impartial arbitrator of | 9 | | the arbitration panel. The parties may select an
individual on | 10 | | the list provided by the Board or any other individual
mutually | 11 | | agreed upon by the parties. Within 7 days following the receipt
| 12 | | of the list, the parties shall notify the Board of the person | 13 | | they have
selected. Unless the parties agree on an alternate | 14 | | selection procedure,
they shall alternatively strike one name | 15 | | from the list provided by the
Board until only one name | 16 | | remains. A coin toss shall determine which party
shall strike | 17 | | the first name. If the parties fail to notify the Board in a
| 18 | | timely manner of their selection for neutral chairman, the | 19 | | Board shall
appoint a neutral chairman from the Illinois Public | 20 | | Employees
Mediation/Arbitration Roster.
| 21 | | (d) The chairman shall call a hearing to begin within 15 | 22 | | days and give
reasonable notice of the time and place of the | 23 | | hearing. The hearing
shall be held at the offices of the Board | 24 | | or at such other location as the
Board deems appropriate. The | 25 | | chairman shall preside over the hearing and
shall take | 26 | | testimony. Any oral or documentary evidence and other data
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| 1 | | deemed relevant by the arbitration panel may be received in | 2 | | evidence. The
proceedings shall be informal. Technical rules of | 3 | | evidence shall not apply
and the competency of the evidence | 4 | | shall not thereby be deemed impaired. A
verbatim record of the | 5 | | proceedings shall be made and the arbitrator shall
arrange for | 6 | | the necessary recording service. Transcripts may be ordered at
| 7 | | the expense of the party ordering them, but the transcripts | 8 | | shall not be
necessary for a decision by the arbitration panel. | 9 | | The expense of the
proceedings, including a fee for the | 10 | | chairman, established in advance by
the Board, shall be borne | 11 | | equally by each of the parties to the dispute.
The delegates, | 12 | | if public officers or employees, shall continue on the
payroll | 13 | | of the public employer without loss of pay. The hearing | 14 | | conducted
by the arbitration panel may be adjourned from time | 15 | | to time, but unless
otherwise agreed by the parties, shall be | 16 | | concluded within 30 days of the
time of its commencement. | 17 | | Majority actions and rulings shall constitute
the actions and | 18 | | rulings of the arbitration panel. Arbitration proceedings
| 19 | | under this Section shall not be interrupted or terminated by | 20 | | reason of any
unfair labor practice charge filed by either | 21 | | party at any time.
| 22 | | (e) The arbitration panel may administer oaths, require the | 23 | | attendance
of witnesses, and the production of such books, | 24 | | papers, contracts, agreements
and documents as may be deemed by | 25 | | it material to a just determination of
the issues in dispute, | 26 | | and for such purpose may issue subpoenas. If any
person refuses |
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| 1 | | to obey a subpoena, or refuses to be sworn or to testify,
or if | 2 | | any witness, party or attorney is guilty of any contempt while | 3 | | in
attendance at any hearing, the arbitration panel may, or the | 4 | | attorney general
if requested shall, invoke the aid of any | 5 | | circuit court within the jurisdiction
in which the hearing is | 6 | | being held, which court shall issue an appropriate
order. Any | 7 | | failure to obey the order may be punished by the court as | 8 | | contempt.
| 9 | | (f) At any time before the rendering of an award, the | 10 | | chairman of the
arbitration panel, if he is of the opinion that | 11 | | it would be useful or
beneficial to do so, may remand the | 12 | | dispute to the parties for further
collective bargaining for a | 13 | | period not to exceed 2 weeks. If the dispute
is remanded for | 14 | | further collective bargaining the time provisions of this
Act | 15 | | shall be extended for a time period equal to that of the | 16 | | remand. The
chairman of the panel of arbitration shall notify | 17 | | the Board of the remand.
| 18 | | (g) At or before the conclusion of the hearing held | 19 | | pursuant to subsection
(d), the arbitration panel shall | 20 | | identify the economic issues in dispute,
and direct each of the | 21 | | parties to submit, within such time limit as the
panel shall | 22 | | prescribe, to the arbitration panel and to each other its last
| 23 | | offer of settlement on each economic issue. The determination | 24 | | of the
arbitration panel as to the issues in dispute and as to | 25 | | which of these
issues are economic shall be conclusive. The | 26 | | arbitration panel, within 30
days after the conclusion of the |
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| 1 | | hearing, or such further additional
periods to which the | 2 | | parties may agree, shall make written findings of fact
and | 3 | | promulgate a written opinion and shall mail or otherwise | 4 | | deliver a true
copy thereof to the parties and their | 5 | | representatives and to the Board. As
to each economic issue, | 6 | | the arbitration panel shall adopt the last offer of
settlement | 7 | | which, in the opinion of the arbitration panel, more nearly
| 8 | | complies with the applicable factors prescribed in subsection | 9 | | (h). The
findings, opinions and order as to all other issues | 10 | | shall be based upon the
applicable factors prescribed in | 11 | | subsection (h).
| 12 | | (h) Where there is no agreement between the parties, or | 13 | | where there is
an agreement but the parties have begun | 14 | | negotiations or discussions looking
to a new agreement or | 15 | | amendment of the existing agreement, and wage rates
or other | 16 | | conditions of employment under the proposed new or amended | 17 | | agreement
are in dispute, the arbitration panel shall base its | 18 | | findings, opinions
and order upon the following factors, as | 19 | | applicable:
| 20 | | (1) The lawful authority of the employer.
| 21 | | (2) Stipulations of the parties.
| 22 | | (3) The interests and welfare of the public and the | 23 | | financial ability
of the unit of government to meet those | 24 | | costs.
| 25 | | (4) Comparison of the wages, hours and conditions of | 26 | | employment of the
employees involved in the arbitration |
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| 1 | | proceeding with the wages, hours and
conditions of | 2 | | employment of other employees performing similar services
| 3 | | and with other employees generally:
| 4 | | (A) In public employment in comparable | 5 | | communities.
| 6 | | (B) In private employment in comparable | 7 | | communities.
| 8 | | (5) The average consumer prices for goods and services, | 9 | | commonly known
as the cost of living.
| 10 | | (6) The overall compensation presently received by the | 11 | | employees,
including
direct wage compensation, vacations, | 12 | | holidays and other excused time, insurance
and pensions, | 13 | | medical and hospitalization benefits, the continuity and
| 14 | | stability of employment and all other benefits received.
| 15 | | (7) Changes in any of the foregoing circumstances | 16 | | during the pendency
of the arbitration proceedings.
| 17 | | (8) Such other factors, not confined to the foregoing, | 18 | | which are normally
or traditionally taken into | 19 | | consideration in the determination of wages,
hours and | 20 | | conditions of employment through voluntary collective | 21 | | bargaining,
mediation, fact-finding, arbitration or | 22 | | otherwise between the parties, in
the public service or in | 23 | | private employment.
| 24 | | (i) In the case of peace officers, the arbitration decision | 25 | | shall be
limited to wages, hours, and conditions of employment | 26 | | (which may include
residency requirements in municipalities |
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| 1 | | with a population under 1,000,000, but
those residency | 2 | | requirements shall not allow residency outside of Illinois)
and | 3 | | shall not include
the following: i) residency requirements in | 4 | | municipalities with a population
of at least 1,000,000; ii) the | 5 | | type of equipment, other
than uniforms, issued or used; iii) | 6 | | manning; iv) the total number of
employees employed by the | 7 | | department; v) mutual aid and assistance
agreements to other | 8 | | units of government; and vi) the criterion pursuant to
which | 9 | | force, including deadly force, can be used; and vii) the | 10 | | changes, the impact of the changes, and the implementation of | 11 | | the changes set forth in this amendatory Act of the 97th | 12 | | General Assembly, which are prohibited subjects of bargaining; | 13 | | provided, nothing herein
shall preclude an arbitration | 14 | | decision regarding equipment or manning
levels if such decision | 15 | | is based on a finding that the equipment or manning
| 16 | | considerations in a specific work assignment involve a serious | 17 | | risk to the
safety of a peace officer beyond that which is | 18 | | inherent in the normal
performance of police duties. Limitation | 19 | | of the terms of the arbitration
decision pursuant to this | 20 | | subsection shall not be construed to limit the
factors upon | 21 | | which the decision may be based, as set forth in subsection | 22 | | (h).
| 23 | | In the case of fire fighter, and fire department or fire | 24 | | district paramedic
matters, the arbitration decision shall be | 25 | | limited to wages, hours, and
conditions of employment (which | 26 | | may include residency requirements in
municipalities with a |
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| 1 | | population under 1,000,000, but those residency
requirements | 2 | | shall not allow residency outside of Illinois) and shall not
| 3 | | include the
following matters: i) residency requirements in | 4 | | municipalities with a
population of at least 1,000,000; ii) the | 5 | | type of equipment (other than
uniforms and fire fighter turnout | 6 | | gear) issued or used; iii) the total
number of employees | 7 | | employed by the department; iv) mutual aid and
assistance | 8 | | agreements to other units of government; and v) the criterion
| 9 | | pursuant to which force, including deadly force, can be used; | 10 | | and vi) the changes, the impact of the changes, and the | 11 | | implementation of the changes set forth in this amendatory Act | 12 | | of the 97th General Assembly, which are prohibited subjects of | 13 | | bargaining; provided,
however, nothing herein shall preclude | 14 | | an arbitration decision regarding
equipment levels if such | 15 | | decision is based on a finding that the equipment
| 16 | | considerations in a specific work assignment involve a serious | 17 | | risk to the
safety of a fire fighter beyond that which is | 18 | | inherent in the normal
performance of fire fighter duties. | 19 | | Limitation of the terms of the
arbitration decision pursuant to | 20 | | this subsection shall not be construed to
limit the facts upon | 21 | | which the decision may be based, as set forth in
subsection | 22 | | (h).
| 23 | | The changes to this subsection (i) made by Public Act | 24 | | 90-385 (relating to residency requirements) do not
apply to | 25 | | persons who are employed by a combined department that performs | 26 | | both
police and firefighting services; these persons shall be |
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| 1 | | governed by the
provisions of this subsection (i) relating to | 2 | | peace officers, as they existed
before the amendment by Public | 3 | | Act 90-385.
| 4 | | To preserve historical bargaining rights, this subsection | 5 | | shall not apply
to any provision of a fire fighter collective | 6 | | bargaining agreement in effect
and applicable on the effective | 7 | | date of this Act; provided, however, nothing
herein shall | 8 | | preclude arbitration with respect to any such provision.
| 9 | | In the case of security employees or employees deemed to be | 10 | | essential workers pursuant to Section 18 of this Act, an | 11 | | arbitration decision shall not alter or affect the changes, the | 12 | | impact of the changes, or the implementation of the changes set | 13 | | forth in this amendatory Act of the 97th General Assembly, | 14 | | which are prohibited subjects of bargaining. | 15 | | (j) Arbitration procedures shall be deemed to be initiated | 16 | | by the
filing of a letter requesting mediation as required | 17 | | under subsection (a)
of this Section. The commencement of a new | 18 | | municipal fiscal year after the
initiation of arbitration | 19 | | procedures under this Act, but before the
arbitration decision, | 20 | | or its enforcement, shall not be deemed to render a
dispute | 21 | | moot, or to otherwise impair the jurisdiction or authority of | 22 | | the
arbitration panel or its decision. Increases in rates
of | 23 | | compensation awarded by the arbitration panel may be effective | 24 | | only at
the start of the fiscal year next commencing after the | 25 | | date of the arbitration
award. If a new fiscal year has | 26 | | commenced either since the initiation of
arbitration |
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| 1 | | procedures under this Act or since any mutually agreed
| 2 | | extension of the statutorily required period of mediation
under | 3 | | this Act by the parties to the labor dispute causing a
delay in | 4 | | the initiation of arbitration, the foregoing limitations shall | 5 | | be
inapplicable, and such awarded increases may be retroactive | 6 | | to the
commencement of the fiscal year, any other statute or | 7 | | charter provisions to
the contrary, notwithstanding. At any | 8 | | time the parties, by stipulation, may
amend or modify an award | 9 | | of arbitration.
| 10 | | (k) Orders of the arbitration panel shall be reviewable, | 11 | | upon
appropriate petition by either the public employer or the | 12 | | exclusive
bargaining representative, by the circuit court for | 13 | | the county in which the
dispute arose or in which a majority of | 14 | | the affected employees reside, but
only for reasons that the | 15 | | arbitration panel was without or exceeded its
statutory | 16 | | authority; the order is arbitrary, or capricious; or the order
| 17 | | was procured by fraud, collusion or other similar and unlawful | 18 | | means. Such
petitions for review must be filed with the | 19 | | appropriate circuit court
within 90 days following the issuance | 20 | | of the arbitration order. The
pendency of such proceeding for | 21 | | review shall not automatically stay the
order of the | 22 | | arbitration panel. The party against whom the final decision
of | 23 | | any such court shall be adverse, if such court finds such | 24 | | appeal or
petition to be frivolous, shall pay reasonable | 25 | | attorneys' fees and costs to
the successful party as determined | 26 | | by said court in its discretion. If said
court's decision |
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| 1 | | affirms the award of money, such award, if retroactive,
shall | 2 | | bear interest at the rate of 12 percent per annum from the | 3 | | effective
retroactive date.
| 4 | | (l) During the pendency of proceedings before the | 5 | | arbitration panel,
existing wages, hours, and other conditions | 6 | | of employment shall not be
changed by action of either party | 7 | | without the consent of the other but a
party may so consent | 8 | | without prejudice to his rights or position under
this Act. The | 9 | | proceedings are deemed to be pending before the arbitration
| 10 | | panel upon the initiation of arbitration procedures under this | 11 | | Act.
| 12 | | (m) Security officers of public employers, and Peace | 13 | | Officers, Fire
Fighters and fire department and fire protection | 14 | | district paramedics,
covered by this Section may not withhold | 15 | | services, nor may public employers
lock out or prevent such | 16 | | employees from performing services at any time.
| 17 | | (n) All of the terms decided upon by the arbitration panel | 18 | | shall be included
in an agreement to be submitted to the public | 19 | | employer's governing body
for ratification and adoption by law, | 20 | | ordinance or the equivalent
appropriate means.
| 21 | | The governing body shall review each term decided by the | 22 | | arbitration panel.
If the governing body fails to reject one or | 23 | | more terms of the
arbitration panel's decision by a 3/5 vote of | 24 | | those duly elected and
qualified members of the governing body, | 25 | | within 20 days of issuance, or
in the case of firefighters | 26 | | employed by a state university, at the next
regularly scheduled |
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| 1 | | meeting of the governing body after issuance, such
term or | 2 | | terms shall become a part of the collective bargaining | 3 | | agreement of
the parties. If the governing body affirmatively | 4 | | rejects one or more terms
of the arbitration panel's decision, | 5 | | it must provide reasons for such
rejection with respect to each | 6 | | term so rejected, within 20 days of such
rejection and the | 7 | | parties shall return to the arbitration panel
for further | 8 | | proceedings and issuance of a supplemental decision with | 9 | | respect
to the rejected terms. Any supplemental decision by an | 10 | | arbitration panel
or other decision maker agreed to by the | 11 | | parties shall be submitted to
the governing body for | 12 | | ratification and adoption in accordance with the
procedures and | 13 | | voting requirements set forth in this Section.
The voting | 14 | | requirements of this subsection shall apply to all disputes
| 15 | | submitted to arbitration pursuant to this Section | 16 | | notwithstanding any
contrary voting requirements contained in | 17 | | any existing collective
bargaining agreement between the | 18 | | parties.
| 19 | | (o) If the governing body of the employer votes to reject | 20 | | the panel's
decision, the parties shall return to the panel | 21 | | within 30 days from the
issuance of the reasons for rejection | 22 | | for further proceedings and issuance
of a supplemental | 23 | | decision. All reasonable costs of such supplemental
proceeding | 24 | | including the exclusive representative's reasonable attorney's
| 25 | | fees, as established by the Board, shall be paid by the | 26 | | employer.
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| 1 | | (p) Notwithstanding the provisions of this Section the | 2 | | employer and
exclusive representative may agree to submit | 3 | | unresolved disputes concerning
wages, hours, terms and | 4 | | conditions of employment to an alternative form of
impasse | 5 | | resolution.
| 6 | | (Source: P.A. 96-813, eff. 10-30-09.)"; and
| 7 | | on page 3, in line 8, by deleting " to the Illinois Pension | 8 | | Code "; and | 9 | | on page 30, below line 25, by inserting the following: | 10 | | " Any payments required to be made by the State pursuant to | 11 | | this subsection (c)
are expressly subordinated to the payment | 12 | | of the principal, interest, and premium, if any, on any
bonded | 13 | | debt obligation of the State or any other State-created entity, | 14 | | either currently outstanding or to
be issued, for which the | 15 | | source of repayment or security thereon is derived directly or | 16 | | indirectly from
tax revenues collected by the State or any | 17 | | other State-created entity. Payments on such bonded
| 18 | | obligations include any statutory fund transfers or other | 19 | | prefunding mechanisms or formulas set forth,
now or hereafter, | 20 | | in State law or bond indentures, into debt service funds or | 21 | | accounts of the State
related to such bonded obligations, | 22 | | consistent with the payment schedules associated with such
| 23 | | obligations. "; and |
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| 1 | | on page 66, below line 9, by inserting the following: | 2 | | " Any payments required to be made by the State pursuant to | 3 | | this subsection (c)
are expressly subordinated to the payment | 4 | | of the principal, interest, and premium, if any, on any
bonded | 5 | | debt obligation of the State or any other State-created entity, | 6 | | either currently outstanding or to
be issued, for which the | 7 | | source of repayment or security thereon is derived directly or | 8 | | indirectly from
tax revenues collected by the State or any | 9 | | other State-created entity. Payments on such bonded
| 10 | | obligations include any statutory fund transfers or other | 11 | | prefunding mechanisms or formulas set forth,
now or hereafter, | 12 | | in State law or bond indentures, into debt service funds or | 13 | | accounts of the State
related to such bonded obligations, | 14 | | consistent with the payment schedules associated with such
| 15 | | obligations. "; and | 16 | | on page 111, below line 6, by inserting the following: | 17 | | " Any payments required to be made by the State pursuant to | 18 | | this subsection (b)
are expressly subordinated to the payment | 19 | | of the principal, interest, and premium, if any, on any
bonded | 20 | | debt obligation of the State or any other State-created entity, | 21 | | either currently outstanding or to
be issued, for which the | 22 | | source of repayment or security thereon is derived directly or | 23 | | indirectly from
tax revenues collected by the State or any | 24 | | other State-created entity. Payments on such bonded
| 25 | | obligations include any statutory fund transfers or other |
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| 1 | | prefunding mechanisms or formulas set forth,
now or hereafter, | 2 | | in State law or bond indentures, into debt service funds or | 3 | | accounts of the State
related to such bonded obligations, | 4 | | consistent with the payment schedules associated with such
| 5 | | obligations. "; and | 6 | | on page 164, by replacing lines 4 through 11 with the | 7 | | following: | 8 | | "(40 ILCS 5/16-158.2 new) | 9 | | Sec. 16-158.2. Obligations of State; funding guarantee. | 10 | | Beginning July 1, 2013, the State shall be "; and | 11 | | on page 165, below line 6, by inserting the following: | 12 | | " Any payments required to be made by the State pursuant to | 13 | | this Section are expressly subordinated to the payment of the | 14 | | principal, interest, and premium, if any, on any
bonded debt | 15 | | obligation of the State or any other State-created entity, | 16 | | either currently outstanding or to
be issued, for which the | 17 | | source of repayment or security thereon is derived directly or | 18 | | indirectly from
tax revenues collected by the State or any | 19 | | other State-created entity. Payments on such bonded
| 20 | | obligations include any statutory fund transfers or other | 21 | | prefunding mechanisms or formulas set forth,
now or hereafter, | 22 | | in State law or bond indentures, into debt service funds or | 23 | | accounts of the State
related to such bonded obligations, |
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| 1 | | consistent with the payment schedules associated with such
| 2 | | obligations. ".
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