SB0006 99TH GENERAL ASSEMBLY

LRB099 04202 SXM 24224 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0006

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

SYNOPSIS AS INTRODUCED:

30 ILCS 105/6z-43
30 ILCS 105/6z-51
30 ILCS 122/15
30 ILCS 122/20

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

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 State Finance Act is amended by changing Sections 6z-43 and 6z-51 as follows:

(30 ILCS 105/6z-43)

Sec. 6z-43. Tobacco Settlement Recovery Fund.

(a) There is created in the State Treasury a special fund to be known as the Tobacco Settlement Recovery Fund, which shall contain 3 accounts: (i) the General Account, (ii) the Tobacco Settlement Bond Proceeds Account and (iii) the Tobacco Settlement Residual Account. There shall be deposited into the several accounts of the Tobacco Settlement Recovery Fund and the Attorney General Tobacco Fund all monies paid to the State pursuant to (1) the Master Settlement Agreement entered in the case of People of the State of Illinois v. Philip Morris, et al. (Circuit Court of Cook County, No. 96-L13146) and (2) any settlement with or judgment against any tobacco product manufacturer other than one participating in the Master Settlement Agreement in satisfaction of any released claim as defined in the Master Settlement Agreement, as well as any other monies as provided by law. Moneys shall be deposited into the Tobacco Settlement Bond Proceeds Account and the Tobacco Settlement Residual Account as provided by the terms of the Railsplitter Tobacco Settlement Authority Act, provided that an annual amount not less than $2,500,000, subject to appropriation, shall be deposited into the Attorney General Tobacco Fund for use only by the Attorney General's office. The scheduled $2,500,000 deposit into the Tobacco Settlement Residual Account for fiscal year 2011 should be transferred to the Attorney General Tobacco Fund in fiscal year 2012 as soon as this fund has been established. All other moneys available to be deposited into the Tobacco Settlement Recovery Fund shall be deposited into the General Account. An investment made from moneys credited to a specific account constitutes part of that account and such account shall be credited with all income from the investment of such moneys. The Treasurer may invest the moneys in the several accounts the Fund in the same manner, in the same types of investments, and subject to the same limitations provided in the Illinois Pension Code for the investment of pension funds other than those established under Article 3 or 4 of the Code. Notwithstanding the foregoing, to the extent necessary to preserve the tax-exempt status of any bonds issued pursuant to the Railsplitter Tobacco Settlement Authority Act, the interest on which is intended to be excludable from the gross income of the owners for federal income tax purposes, moneys on deposit in the Tobacco Settlement Bond Proceeds Account and the Tobacco Settlement Residual Account may be invested in obligations the interest upon which is tax-exempt under the provisions of Section 103 of the Internal Revenue Code of 1986, as now or hereafter amended, or any successor code or provision.

(b) Moneys on deposit in the Tobacco Settlement Bond Proceeds Account and the Tobacco Settlement Residual Account may be expended, subject to appropriation, for the purposes authorized in subsection (g) of Section 3-6 Section 6(g) of the Railsplitter Tobacco Settlement Authority Act.

(c) As soon as may be practical after June 30, 2001 and until an initial transfer has been made to the Budget Stabilization Fund under subsection (b) of Section 15 of the Budget Stabilization Act as amended by this amendatory Act of the 99th General Assembly, upon notification from and at the direction of the Governor, the State Comptroller shall direct and the State Treasurer shall transfer the unencumbered balance in the Tobacco Settlement Recovery Fund as of June 30, 2001, as determined by the Governor, into the Budget Stabilization Fund. The Treasurer may invest the moneys in the Budget Stabilization Fund in the same manner, in the same types of investments, and subject to the same limitations provided in the Illinois Pension Code for the investment of pension funds other than those established under Article 3 or 4 of the Code.

(d) All federal financial participation moneys received pursuant to expenditures from the Fund shall be deposited into the General Account.

(Source: P.A. 96-958, eff. 7-1-10; 97-72, eff. 7-1-11; revised 12-1-14.)

(30 ILCS 105/6z-51)

Sec. 6z-51. Budget Stabilization Fund.

(a) The Budget Stabilization Fund, a special fund in the State Treasury, shall consist of moneys appropriated or transferred to that Fund, as provided in Section 6z-43 and as otherwise provided by law. All earnings on Budget Stabilization Fund investments shall be deposited into that Fund.

(b) Until an initial transfer has been made to the Budget Stabilization Fund under subsection (b) of Section 15 of the Budget Stabilization Act as amended by this amendatory Act of the 99th General Assembly, the The State Comptroller may direct the State Treasurer to transfer moneys from the Budget Stabilization Fund to the General Revenue Fund in order to meet cash flow deficits resulting from timing variations between disbursements and the receipt of funds within a fiscal year. Any moneys so borrowed in any fiscal year other than Fiscal Year 2011 shall be repaid by June 30 of the fiscal year in which they were borrowed. Any moneys so borrowed in Fiscal Year 2011 shall be repaid no later than July 15, 2011.

(Source: P.A. 97-44, eff. 6-28-11.)

Section 10. The Budget Stabilization Act is amended by changing Sections 15 and 20 as follows:

(30 ILCS 122/15)

Sec. 15. Transfers to Budget Stabilization Fund. In furtherance of the State's objective for the Budget Stabilization Fund to have resources representing 5% of the State's annual general funds revenues:

(a) On January 10, 2016 and each January 10 thereafter, the Department on Aging, the Department of Healthcare and Family Services, and the Department of Human Services shall certify to the Comptroller the amount of invoices that may be paid from appropriations in future fiscal years resulting from insufficient appropriations in the current fiscal year. In addition, the Department of Central Management Services shall certify the amount of invoices that may be paid from appropriations in future fiscal years due to insufficient resources in the Health Insurance Reserve Fund, and the Department of Revenue shall certify an estimate of the amount of individual and corporate income tax overpayments that will not be refunded before the close of the current fiscal year resulting from insufficient deposits into the Income Tax Refund Fund. On January 15, 2016 and each January 15 thereafter, the Comptroller shall issue a report to the Governor and the General Assembly detailing the total value of the amounts certified by the Department on Aging and the Departments of Central Management Services, Healthcare and Family Services, Human Services, and Revenue. The report shall also include the accounts payable with the Comptroller at the close of business on December 31, 2015 and each December 31 thereafter. For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Budget Stabilization Fund.

(b) If the amount of accounts payable reported by the Comptroller is an amount less than $3,400,000,000, on the last day of each month of the next fiscal year or as soon thereafter as possible, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Budget Stabilization Fund the lesser of (i) $400,000,000 or (ii) the amount necessary to maintain resources in the Budget Stabilization Fund that is equal to 5% of the total general funds revenues of the prior fiscal year, in equal monthly installments. Nothing in this Act prohibits the General Assembly from appropriating additional moneys into the Budget Stabilization Fund; however, transfers or appropriations shall only be made from the Budget Stabilization Fund under subsection (d) of this Section. For each fiscal year when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1% of the estimated general funds revenues to the Budget Stabilization Fund.

(c) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Budget Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible. The balance of the Budget Stabilization Fund shall not exceed 5% of the total of general funds revenues estimated for that fiscal year. If the balance of the Budget Stabilization Fund is equal to 5% of the total general funds revenues of the prior fiscal year, no further transfers shall be made to the Budget Stabilization Fund. However, if the amounts certified to the Comptroller that may be paid from future fiscal year resources by the Department on Aging and the Departments of Central Management Services, Healthcare and Family Services, Human Services, and Revenue exceed zero, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Health Insurance Reserve Fund, the Health Care Provider Relief Fund, or the Income Tax Refund Fund an amount necessary to reduce those amounts to zero, but not to exceed a monthly aggregate of $33,333,333. except as provided by subsection (d) of this Section.

(d) Upon written notice from the Governor to the Clerk of the House of Representatives, the Secretary of the Senate, and the Secretary of State pursuant to Section 1.1 of the Short Term Borrowing Act, the Comptroller may cease the order of any further transfers to the Budget Stabilization Fund and may order the transfer and the Treasurer shall transfer from the Budget Stabilization Fund to the General Revenue Fund an amount deemed necessary to maintain the State's accounts payable to an amount below $3,400,000,000. In the event that such written notice has been provided, the General Assembly may make transfers or appropriations from the Budget Stabilization Fund for the upcoming fiscal year as necessary to provide for the health, safety, and welfare of the people of the State of Illinois. If the balance of the Budget Stabilization Fund exceeds 5% of the total general funds revenues estimated for that fiscal year, the additional transfers are not required unless there are outstanding liabilities under Section 25 of the State Finance Act from prior fiscal years. If there are such outstanding Section 25 liabilities, then the Comptroller shall continue to transfer 1/12 of the total amount identified for transfer to the Budget Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible to be reserved for those Section 25 liabilities. Nothing in this Act prohibits the General Assembly from appropriating additional moneys into the Budget Stabilization Fund.

(e) On or before August 31 of each fiscal year, the amount determined to be transferred to the Budget Stabilization Fund shall be reconciled to actual general funds revenues for that fiscal year. The final transfer for each fiscal year shall be adjusted so that the total amount transferred under this Section is equal to the amount percentage specified in subsection (a) or (b) of this Section, as applicable, based on actual general funds revenues calculated consistently with subsection (c) of Section 10 of this Act for each fiscal year.

(f) For the fiscal year beginning July 1, 2006 and for each fiscal year thereafter, the budget proposal to the General Assembly shall identify liabilities incurred in a prior fiscal year under Section 25 of the State Finance Act and the budget proposal shall provide funding as allowable pursuant to subsection (d) of this Section, if applicable.

(Source: P.A. 93-660, eff. 7-1-04; 94-839, eff. 6-6-06.)

(30 ILCS 122/20)

Sec. 20. Pension Stabilization Fund.

(a) The Pension Stabilization Fund is hereby created as a special fund in the State treasury. Moneys in the fund shall be used for the sole purpose of making payments to the designated retirement systems as provided in Section 25.

(b) For each fiscal year through State fiscal year 2014, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1.0% 0.5% of the estimated general funds revenues to the Pension Stabilization Fund.

(c) For each fiscal year through State fiscal year 2014, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 2.0% 1.0% of the estimated general funds revenues to the Pension Stabilization Fund.

(c-5) In addition to any other amounts required to be transferred under this Section, in State fiscal year 2016 and each fiscal year thereafter through State fiscal year 2045, or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first, the State Comptroller shall order transferred and the State Treasurer shall transfer from the General Revenue Fund to the Pension Stabilization Fund an amount equal to 10% of (1) the sum of the amounts certified by the designated retirement systems under subsection (a-5) of Section 2-134, subsection (a-10) of Section 14-135.08, subsection (a-10) of Section 15-165, and subsection (a-10) of Section 16-158 of this Code for that fiscal year minus (2) the sum of (i) the transfer required under subsection (c-10) of this Section for that fiscal year and (ii) the sum of the required State contributions certified by the retirement systems under subsection (a) of Section 2-134, subsection (a-5) of Section 14-135.08, subsection (a-5) of Section 15-165, and subsection (a-5) of Section 16-158 of this Code for that fiscal year. The transferred amount is intended to represent one-tenth of the annual savings to the State resulting from the enactment of this amendatory Act of the 98th General Assembly.

(c-10) In State fiscal year 2019, the State Comptroller shall order transferred and the State Treasurer shall transfer $364,000,000 from the General Revenue Fund to the Pension Stabilization Fund. In State fiscal year 2020 and each fiscal year thereafter until terminated under subsection (c-15), the State Comptroller shall order transferred and the State Treasurer shall transfer $1,000,000,000 from the General Revenue Fund to the Pension Stabilization Fund.

(c-15) The transfers made beginning in State fiscal year 2020 pursuant to subsection (c-10) of this Section shall terminate at the end of State fiscal year 2045 or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first.

(d) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Pension Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible; except that the final transfer of the fiscal year shall be made as soon as practical after the August 31 following the end of the fiscal year.

Before Until State fiscal year 2015, before the final transfer for a fiscal year is made, the Comptroller shall reconcile the estimated general funds revenues used in calculating the other transfers under this Section for that fiscal year with the actual general funds revenues for that fiscal year. The final transfer for the fiscal year shall be adjusted so that the total amount transferred under this Section for that fiscal year is equal to the percentage specified in subsection (b) or (c) of this Section, whichever is applicable, of the actual general funds revenues for that fiscal year. The actual general funds revenues for the fiscal year shall be calculated in a manner consistent with subsection (c) of Section 10 of this Act.

(Source: P.A. 98-599, eff. 6-1-14.)

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