Full Text of HB4371 100th General Assembly
HB4371 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4371 Introduced , by Rep. Robert Martwick SYNOPSIS AS INTRODUCED: |
| 30 ILCS 105/5.886 new | | 30 ILCS 330/2 | from Ch. 127, par. 652 | 30 ILCS 330/2.5 | | 30 ILCS 330/7.7 new | | 30 ILCS 330/9 | from Ch. 127, par. 659 | 30 ILCS 330/11 | from Ch. 127, par. 661 | 30 ILCS 330/12 | from Ch. 127, par. 662 | 30 ILCS 330/13 | from Ch. 127, par. 663 | 40 ILCS 15/1.10 new | |
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Amends the General Obligation Bond Act. Authorizes the issuance of an additional $107,420,000,000 in State State Serial Long Term Pension Obligation Bonds. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act to create the State Pension Serial Long Term Obligation Bond Fund. Effective immediately.
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 3. The State Finance Act is amended by adding | 5 | | Section 5.886 as follows: | 6 | | (30 ILCS 105/5.886 new) | 7 | | Sec. 5.886. The State Serial Long Term Pension Obligation | 8 | | Bond Fund. | 9 | | Section 5. The General Obligation Bond Act is amended by | 10 | | changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding | 11 | | Section 7.7 as follows: | 12 | | (30 ILCS 330/2) (from Ch. 127, par. 652) | 13 | | Sec. 2. Authorization for Bonds. The State of Illinois is | 14 | | authorized to
issue, sell and provide for the retirement of | 15 | | General Obligation Bonds of
the State of Illinois for the | 16 | | categories and specific purposes expressed in
Sections 2 | 17 | | through 8 of this Act, in the total amount of $163,337,925,743 | 18 | | $55,917,925,743 . | 19 | | The bonds authorized in this Section 2 and in Section 16 of | 20 | | this Act are
herein called "Bonds". | 21 | | Of the total amount of Bonds authorized in this Act, up to |
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| 1 | | $2,200,000,000
in aggregate original principal amount may be | 2 | | issued and sold in accordance
with the Baccalaureate Savings | 3 | | Act in the form of General Obligation
College Savings Bonds. | 4 | | Of the total amount of Bonds authorized in this Act, up to | 5 | | $300,000,000 in
aggregate original principal amount may be | 6 | | issued and sold in accordance
with the Retirement Savings Act | 7 | | in the form of General Obligation
Retirement Savings Bonds. | 8 | | Of the total amount of Bonds authorized in this Act, the | 9 | | additional
$10,000,000,000 authorized by Public Act 93-2, the | 10 | | $3,466,000,000 authorized by Public Act 96-43, and the | 11 | | $4,096,348,300 authorized by Public Act 96-1497 shall be used | 12 | | solely as provided in Section 7.2. | 13 | | Of the total amount of Bonds authorized in this Act, the | 14 | | additional $6,000,000,000 authorized by this amendatory Act of | 15 | | the 100th General Assembly shall be used solely as provided in | 16 | | Section 7.6 and shall be issued by December 31, 2017. | 17 | | Of the total amount of Bonds authorized in this Act, the | 18 | | additional $107,420,000,000 authorized by Section 7.7 shall be | 19 | | used solely as provided in Section 7.7. | 20 | | The issuance and sale of Bonds pursuant to the General | 21 | | Obligation Bond
Act is an economical and efficient method of | 22 | | financing the long-term capital needs of
the State. This Act | 23 | | will permit the issuance of a multi-purpose General
Obligation | 24 | | Bond with uniform terms and features. This will not only lower
| 25 | | the cost of registration but also reduce the overall cost of | 26 | | issuing debt
by improving the marketability of Illinois General |
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| 1 | | Obligation Bonds. | 2 | | (Source: P.A. 100-23, eff. 7-6-17.) | 3 | | (30 ILCS 330/2.5) | 4 | | Sec. 2.5. Limitation on issuance of Bonds. | 5 | | (a) Except as provided in subsection (b), no Bonds may be | 6 | | issued if, after the issuance, in the next State fiscal year | 7 | | after the issuance of the Bonds, the amount of debt service | 8 | | (including principal, whether payable at maturity or pursuant | 9 | | to mandatory sinking fund installments, and interest) on all | 10 | | then-outstanding Bonds, other than (i) Bonds authorized by | 11 | | Public Act 100-23 this amendatory Act of the 100th General | 12 | | Assembly , (ii) Bonds issued by Public Act 96-43, and (iii) | 13 | | Bonds authorized by Public Act 96-1497, and (iv) Bonds | 14 | | authorized by this amendatory Act of the 100th General | 15 | | Assembly, would exceed 7% of the aggregate appropriations from | 16 | | the general funds (which consist of the General Revenue Fund, | 17 | | the Common School Fund, the General Revenue Common School | 18 | | Special Account Fund, and the Education Assistance Fund) and | 19 | | the Road Fund for the fiscal year immediately prior to the | 20 | | fiscal year of the issuance. | 21 | | (b) If the Comptroller and Treasurer each consent in | 22 | | writing, Bonds may be issued even if the issuance does not | 23 | | comply with subsection (a). In addition, $2,000,000,000 in | 24 | | Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7, | 25 | | and $2,000,000,000 in Refunding Bonds under Section 16, may be |
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| 1 | | issued during State fiscal year 2017 without complying with | 2 | | subsection (a). In addition, $2,000,000,000 in Bonds for the | 3 | | purposes set forth in Sections 3, 4, 5, 6, and 7, and | 4 | | $2,000,000,000 in Refunding Bonds under Section 16, may be | 5 | | issued during State fiscal year 2018 without complying with | 6 | | subsection (a).
| 7 | | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | 8 | | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | 9 | | 7-6-17; revised 8-8-17.) | 10 | | (30 ILCS 330/7.7 new) | 11 | | Sec. 7.7. State Serial Long Term Pension Obligation Bonds. | 12 | | (a) As used in this Act, "State Serial Long Term Pension | 13 | | Obligation Bonds" means Bonds authorized by this amendatory Act | 14 | | of the 100th General Assembly and used for the purposes set | 15 | | forth in this Section. | 16 | | (b) State Serial Long Term Pension Obligation Bonds in the | 17 | | amount of $107,420,000,000 are hereby authorized to be used for | 18 | | the purposes set forth in this Section. | 19 | | (c) The proceeds of State Serial Long Term Pension | 20 | | Obligation Bonds authorized in subsection (b) of this Section | 21 | | shall be deposited directly into the State Serial Long Term | 22 | | Pension Obligation Bond Fund, and the Comptroller and the | 23 | | Treasurer shall, as soon as practical, make payments as | 24 | | contemplated by subsection (d) of this Section. | 25 | | (d) There is created the State Serial Long Term Pension |
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| 1 | | Obligation Bond Fund as a special fund in the State Treasury. | 2 | | Funds deposited in the State Serial Long Term Pension | 3 | | Obligation Bond Fund may be used only to make payments to the | 4 | | State pension systems on a pro-rated basis in an amount | 5 | | sufficient to bring the actuarially accrued unfunded liability | 6 | | of each individual Fund to a 90% level. Notwithstanding any | 7 | | other provision of law, each retirement system under Article | 8 | | 14, 15, or 16 of the Illinois Pension Code shall establish a | 9 | | designated investment fund for 36% of the bond proceeds it | 10 | | receives from any bond issuance authorized by this amendatory | 11 | | Act of the 100th General Assembly. The designated investment | 12 | | fund shall be used solely for the purposes of taking advantage | 13 | | of interest arbitrage from the bond proceeds and for making | 14 | | debt service contributions related to the bonds issued under | 15 | | this amendatory Act of the 100th General Assembly.
| 16 | | (30 ILCS 330/9) (from Ch. 127, par. 659)
| 17 | | Sec. 9. Conditions for issuance and sale of Bonds; | 18 | | requirements Issuance and Sale of Bonds - Requirements for
| 19 | | Bonds. | 20 | | (a) Except as otherwise provided in this subsection , and | 21 | | subsection (h), and subsection (i), Bonds shall be issued and | 22 | | sold from time to time, in one or
more series, in such amounts | 23 | | and at such prices as may be directed by the
Governor, upon | 24 | | recommendation by the Director of the
Governor's Office of | 25 | | Management and Budget.
Bonds shall be in such form (either |
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| 1 | | coupon, registered or book entry), in
such denominations, | 2 | | payable within 25 years from their date, subject to such
terms | 3 | | of redemption with or without premium, bear interest payable at
| 4 | | such times and at such fixed or variable rate or rates, and be | 5 | | dated
as shall be fixed and determined by the Director of
the
| 6 | | Governor's Office of Management and Budget
in the order | 7 | | authorizing the issuance and sale
of any series of Bonds, which | 8 | | order shall be approved by the Governor
and is herein called a | 9 | | "Bond Sale Order"; provided however, that interest
payable at | 10 | | fixed or variable rates shall not exceed that permitted in the
| 11 | | Bond Authorization Act, as now or hereafter amended. Bonds | 12 | | shall be
payable at such place or places, within or without the | 13 | | State of Illinois, and
may be made registrable as to either | 14 | | principal or as to both principal and
interest, as shall be | 15 | | specified in the Bond Sale Order. Bonds may be callable
or | 16 | | subject to purchase and retirement or tender and remarketing as | 17 | | fixed
and determined in the Bond Sale Order. Bonds, other than | 18 | | Bonds issued under Section 3 of this Act for the costs | 19 | | associated with the purchase and implementation of information | 20 | | technology, (i) except for refunding Bonds satisfying the | 21 | | requirements of Section 16 of this Act and sold during fiscal | 22 | | year 2009, 2010, 2011, 2017, or 2018 must be issued with | 23 | | principal or mandatory redemption amounts in equal amounts, | 24 | | with the first maturity issued occurring within the fiscal year | 25 | | in which the Bonds are issued or within the next succeeding | 26 | | fiscal year and (ii) must mature or be subject to mandatory |
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| 1 | | redemption each fiscal year thereafter up to 25 years, except | 2 | | for refunding Bonds satisfying the requirements of Section 16 | 3 | | of this Act and sold during fiscal year 2009, 2010, or 2011 | 4 | | which must mature or be subject to mandatory redemption each | 5 | | fiscal year thereafter up to 16 years. Bonds issued under | 6 | | Section 3 of this Act for the costs associated with the | 7 | | purchase and implementation of information technology must be | 8 | | issued with principal or mandatory redemption amounts in equal | 9 | | amounts, with the first maturity issued occurring with the | 10 | | fiscal year in which the respective bonds are issued or with | 11 | | the next succeeding fiscal year, with the respective bonds | 12 | | issued maturing or subject to mandatory redemption each fiscal | 13 | | year thereafter up to 10 years. Notwithstanding any provision | 14 | | of this Act to the contrary, the Bonds authorized by Public Act | 15 | | 96-43 shall be payable within 5 years from their date and must | 16 | | be issued with principal or mandatory redemption amounts in | 17 | | equal amounts, with payment of principal or mandatory | 18 | | redemption beginning in the first fiscal year following the | 19 | | fiscal year in which the Bonds are issued.
| 20 | | Notwithstanding any provision of this Act to the contrary, | 21 | | the Bonds authorized by Public Act 96-1497 shall be payable | 22 | | within 8 years from their date and shall be issued with payment | 23 | | of maturing principal or scheduled mandatory redemptions in | 24 | | accordance with the following schedule, except the following | 25 | | amounts shall be prorated if less than the total additional | 26 | | amount of Bonds authorized by Public Act 96-1497 are issued: |
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| 1 | | Fiscal Year After Issuance Amount | 2 | | 1-2 $0 | 3 | | 3 $110,712,120 | 4 | | 4 $332,136,360 | 5 | | 5 $664,272,720 | 6 | | 6-8 $996,409,080 | 7 | | Notwithstanding any provision of this Act to the contrary, | 8 | | Income Tax Proceed Bonds issued under Section 7.6 shall be | 9 | | payable 12 years from the date of sale and shall be issued with | 10 | | payment of principal or mandatory redemption. | 11 | | In the case of any series of Bonds bearing interest at a | 12 | | variable interest
rate ("Variable Rate Bonds"), in lieu of | 13 | | determining the rate or rates at which
such series of Variable | 14 | | Rate Bonds shall bear interest and the price or prices
at which | 15 | | such Variable Rate Bonds shall be initially sold or remarketed | 16 | | (in the
event of purchase and subsequent resale), the Bond Sale | 17 | | Order may provide that
such interest rates and prices may vary | 18 | | from time to time depending on criteria
established in such | 19 | | Bond Sale Order, which criteria may include, without
| 20 | | limitation, references to indices or variations in interest | 21 | | rates as may, in
the judgment of a remarketing agent, be | 22 | | necessary to cause Variable Rate Bonds
of such series to be | 23 | | remarketable from time to time at a price equal to their
| 24 | | principal amount, and may provide for appointment of a bank, | 25 | | trust company,
investment bank, or other financial institution | 26 | | to serve as remarketing agent
in that connection.
The Bond Sale |
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| 1 | | Order may provide that alternative interest rates or provisions
| 2 | | for establishing alternative interest rates, different | 3 | | security or claim
priorities, or different call or amortization | 4 | | provisions will apply during
such times as Variable Rate Bonds | 5 | | of any series are held by a person providing
credit or | 6 | | liquidity enhancement arrangements for such Bonds as | 7 | | authorized in
subsection (b) of this Section.
The Bond Sale | 8 | | Order may also provide for such variable interest rates to be
| 9 | | established pursuant to a process generally known as an auction | 10 | | rate process
and may provide for appointment of one or more | 11 | | financial institutions to serve
as auction agents and | 12 | | broker-dealers in connection with the establishment of
such | 13 | | interest rates and the sale and remarketing of such Bonds.
| 14 | | (b) In connection with the issuance of any series of Bonds, | 15 | | the State may
enter into arrangements to provide additional | 16 | | security and liquidity for such
Bonds, including, without | 17 | | limitation, bond or interest rate insurance or
letters of | 18 | | credit, lines of credit, bond purchase contracts, or other
| 19 | | arrangements whereby funds are made available to retire or | 20 | | purchase Bonds,
thereby assuring the ability of owners of the | 21 | | Bonds to sell or redeem their
Bonds. The State may enter into | 22 | | contracts and may agree to pay fees to persons
providing such | 23 | | arrangements, but only under circumstances where the Director | 24 | | of
the
Governor's Office of Management and Budget certifies | 25 | | that he or she reasonably expects the total
interest paid or to | 26 | | be paid on the Bonds, together with the fees for the
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| 1 | | arrangements (being treated as if interest), would not, taken | 2 | | together, cause
the Bonds to bear interest, calculated to their | 3 | | stated maturity, at a rate in
excess of the rate that the Bonds | 4 | | would bear in the absence of such
arrangements.
| 5 | | The State may, with respect to Bonds issued or anticipated | 6 | | to be issued,
participate in and enter into arrangements with | 7 | | respect to interest rate
protection or exchange agreements, | 8 | | guarantees, or financial futures contracts
for the purpose of | 9 | | limiting, reducing, or managing interest rate exposure.
The | 10 | | authority granted under this paragraph, however, shall not | 11 | | increase the principal amount of Bonds authorized to be issued | 12 | | by law. The arrangements may be executed and delivered by the | 13 | | Director
of the
Governor's Office of Management and Budget on | 14 | | behalf of the State. Net payments for such
arrangements shall | 15 | | constitute interest on the Bonds and shall be paid from the
| 16 | | General Obligation Bond Retirement and Interest Fund. The | 17 | | Director of the
Governor's Office of Management and Budget | 18 | | shall at least annually certify to the Governor and
the
State | 19 | | Comptroller his or her estimate of the amounts of such net | 20 | | payments to
be included in the calculation of interest required | 21 | | to be paid by the State.
| 22 | | (c) Prior to the issuance of any Variable Rate Bonds | 23 | | pursuant to
subsection (a), the Director of the
Governor's | 24 | | Office of Management and Budget shall adopt an
interest rate | 25 | | risk management policy providing that the amount of the State's
| 26 | | variable rate exposure with respect to Bonds shall not exceed |
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| 1 | | 20%. This policy
shall remain in effect while any Bonds are | 2 | | outstanding and the issuance of
Bonds
shall be subject to the | 3 | | terms of such policy. The terms of this policy may be
amended | 4 | | from time to time by the Director of the
Governor's Office of | 5 | | Management and Budget but in no
event shall any amendment cause | 6 | | the permitted level of the State's variable
rate exposure with | 7 | | respect to Bonds to exceed 20%.
| 8 | | (d) "Build America Bonds" in this Section means Bonds | 9 | | authorized by Section 54AA of the Internal Revenue Code of | 10 | | 1986, as amended ("Internal Revenue Code"), and bonds issued | 11 | | from time to time to refund or continue to refund "Build | 12 | | America Bonds". | 13 | | (e) Notwithstanding any other provision of this Section, | 14 | | Qualified School Construction Bonds shall be issued and sold | 15 | | from time to time, in one or more series, in such amounts and | 16 | | at such prices as may be directed by the Governor, upon | 17 | | recommendation by the Director of the Governor's Office of | 18 | | Management and Budget. Qualified School Construction Bonds | 19 | | shall be in such form (either coupon, registered or book | 20 | | entry), in such denominations, payable within 25 years from | 21 | | their date, subject to such terms of redemption with or without | 22 | | premium, and if the Qualified School Construction Bonds are | 23 | | issued with a supplemental coupon, bear interest payable at | 24 | | such times and at such fixed or variable rate or rates, and be | 25 | | dated as shall be fixed and determined by the Director of the | 26 | | Governor's Office of Management and Budget in the order |
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| 1 | | authorizing the issuance and sale of any series of Qualified | 2 | | School Construction Bonds, which order shall be approved by the | 3 | | Governor and is herein called a "Bond Sale Order"; except that | 4 | | interest payable at fixed or variable rates, if any, shall not | 5 | | exceed that permitted in the Bond Authorization Act, as now or | 6 | | hereafter amended. Qualified School Construction Bonds shall | 7 | | be payable at such place or places, within or without the State | 8 | | of Illinois, and may be made registrable as to either principal | 9 | | or as to both principal and interest, as shall be specified in | 10 | | the Bond Sale Order. Qualified School Construction Bonds may be | 11 | | callable or subject to purchase and retirement or tender and | 12 | | remarketing as fixed and determined in the Bond Sale Order. | 13 | | Qualified School Construction Bonds must be issued with | 14 | | principal or mandatory redemption amounts or sinking fund | 15 | | payments into the General Obligation Bond Retirement and | 16 | | Interest Fund (or subaccount therefor) in equal amounts, with | 17 | | the first maturity issued, mandatory redemption payment or | 18 | | sinking fund payment occurring within the fiscal year in which | 19 | | the Qualified School Construction Bonds are issued or within | 20 | | the next succeeding fiscal year, with Qualified School | 21 | | Construction Bonds issued maturing or subject to mandatory | 22 | | redemption or with sinking fund payments thereof deposited each | 23 | | fiscal year thereafter up to 25 years. Sinking fund payments | 24 | | set forth in this subsection shall be permitted only to the | 25 | | extent authorized in Section 54F of the Internal Revenue Code | 26 | | or as otherwise determined by the Director of the Governor's |
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| 1 | | Office of Management and Budget. "Qualified School | 2 | | Construction Bonds" in this subsection means Bonds authorized | 3 | | by Section 54F of the Internal Revenue Code and for bonds | 4 | | issued from time to time to refund or continue to refund such | 5 | | "Qualified School Construction Bonds". | 6 | | (f) Beginning with the next issuance by the Governor's | 7 | | Office of Management and Budget to the Procurement Policy Board | 8 | | of a request for quotation for the purpose of formulating a new | 9 | | pool of qualified underwriting banks list, all entities | 10 | | responding to such a request for quotation for inclusion on | 11 | | that list shall provide a written report to the Governor's | 12 | | Office of Management and Budget and the Illinois Comptroller. | 13 | | The written report submitted to the Comptroller shall (i) be | 14 | | published on the Comptroller's Internet website and (ii) be | 15 | | used by the Governor's Office of Management and Budget for the | 16 | | purposes of scoring such a request for quotation. The written | 17 | | report, at a minimum, shall: | 18 | | (1) disclose whether, within the past 3 months, | 19 | | pursuant to its credit default swap market-making | 20 | | activities, the firm has entered into any State of Illinois | 21 | | credit default swaps ("CDS"); | 22 | | (2) include, in the event of State of Illinois CDS | 23 | | activity, disclosure of the firm's cumulative notional | 24 | | volume of State of Illinois CDS trades and the firm's | 25 | | outstanding gross and net notional amount of State of | 26 | | Illinois CDS, as of the end of the current 3-month period; |
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| 1 | | (3) indicate, pursuant to the firm's proprietary | 2 | | trading activities, disclosure of whether the firm, within | 3 | | the past 3 months, has entered into any proprietary trades | 4 | | for its own account in State of Illinois CDS; | 5 | | (4) include, in the event of State of Illinois | 6 | | proprietary trades, disclosure of the firm's outstanding | 7 | | gross and net notional amount of proprietary State of | 8 | | Illinois CDS and whether the net position is short or long | 9 | | credit protection, as of the end of the current 3-month | 10 | | period; | 11 | | (5) list all time periods during the past 3 months | 12 | | during which the firm held net long or net short State of | 13 | | Illinois CDS proprietary credit protection positions, the | 14 | | amount of such positions, and whether those positions were | 15 | | net long or net short credit protection positions; and | 16 | | (6) indicate whether, within the previous 3 months, the | 17 | | firm released any publicly available research or marketing | 18 | | reports that reference State of Illinois CDS and include | 19 | | those research or marketing reports as attachments. | 20 | | (g) All entities included on a Governor's Office of | 21 | | Management and Budget's pool of qualified underwriting banks | 22 | | list shall, as soon as possible after March 18, 2011 (the | 23 | | effective date of Public Act 96-1554), but not later than | 24 | | January 21, 2011, and on a quarterly fiscal basis thereafter, | 25 | | provide a written report to the Governor's Office of Management | 26 | | and Budget and the Illinois Comptroller. The written reports |
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| 1 | | submitted to the Comptroller shall be published on the | 2 | | Comptroller's Internet website. The written reports, at a | 3 | | minimum, shall: | 4 | | (1) disclose whether, within the past 3 months, | 5 | | pursuant to its credit default swap market-making | 6 | | activities, the firm has entered into any State of Illinois | 7 | | credit default swaps ("CDS"); | 8 | | (2) include, in the event of State of Illinois CDS | 9 | | activity, disclosure of the firm's cumulative notional | 10 | | volume of State of Illinois CDS trades and the firm's | 11 | | outstanding gross and net notional amount of State of | 12 | | Illinois CDS, as of the end of the current 3-month period; | 13 | | (3) indicate, pursuant to the firm's proprietary | 14 | | trading activities, disclosure of whether the firm, within | 15 | | the past 3 months, has entered into any proprietary trades | 16 | | for its own account in State of Illinois CDS; | 17 | | (4) include, in the event of State of Illinois | 18 | | proprietary trades, disclosure of the firm's outstanding | 19 | | gross and net notional amount of proprietary State of | 20 | | Illinois CDS and whether the net position is short or long | 21 | | credit protection, as of the end of the current 3-month | 22 | | period; | 23 | | (5) list all time periods during the past 3 months | 24 | | during which the firm held net long or net short State of | 25 | | Illinois CDS proprietary credit protection positions, the | 26 | | amount of such positions, and whether those positions were |
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| 1 | | net long or net short credit protection positions; and | 2 | | (6) indicate whether, within the previous 3 months, the | 3 | | firm released any publicly available research or marketing | 4 | | reports that reference State of Illinois CDS and include | 5 | | those research or marketing reports as attachments. | 6 | | (h) Notwithstanding any other provision of this Section, | 7 | | for purposes of maximizing market efficiencies and cost | 8 | | savings, Income Tax Proceed Bonds may be issued and sold from | 9 | | time to time, in one or more series, in such amounts and at | 10 | | such prices as may be directed by the Governor, upon | 11 | | recommendation by the Director of the Governor's Office of | 12 | | Management and Budget. Income Tax Proceed Bonds shall be in | 13 | | such form, either coupon, registered, or book entry, in such | 14 | | denominations, shall bear interest payable at such times and at | 15 | | such fixed or variable rate or rates, and be dated as shall be | 16 | | fixed and determined by the Director of the Governor's Office | 17 | | of Management and Budget in the order authorizing the issuance | 18 | | and sale of any series of Income Tax Proceed Bonds, which order | 19 | | shall be approved by the Governor and is herein called a "Bond | 20 | | Sale Order"; provided, however, that interest payable at fixed | 21 | | or variable rates shall not exceed that permitted in the Bond | 22 | | Authorization Act. Income Tax Proceed Bonds shall be payable at | 23 | | such place or places, within or without the State of Illinois, | 24 | | and may be made registrable as to either principal or as to | 25 | | both principal and interest, as shall be specified in the Bond | 26 | | Sale Order.
Income Tax Proceed Bonds may be callable or subject |
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| 1 | | to purchase and retirement or tender and remarketing as fixed | 2 | | and determined in the Bond Sale Order. | 3 | | (i) Notwithstanding any other provision of this Section, | 4 | | for purposes of maximizing market efficiencies and cost | 5 | | savings, State Serial Long Term Pension Obligation Bonds may be | 6 | | issued and sold from time to time, in one or more series, in | 7 | | such amounts and at such prices as may be directed by the | 8 | | Governor, upon recommendation by the Director of the Governor's | 9 | | Office of Management and Budget. State Serial Long Term Pension | 10 | | Obligation Bonds shall be in such form, either coupon, | 11 | | registered, or book entry, in such denominations, shall bear | 12 | | interest payable at such times and at such fixed or variable | 13 | | rate or rates, and be dated as shall be fixed and determined by | 14 | | the Director of the Governor's Office of Management and Budget | 15 | | in the order authorizing the issuance and sale of any series of | 16 | | State Serial Long Term Pension Obligation Bonds, which order | 17 | | shall be approved by the Governor and is herein called a "Bond | 18 | | Sale Order"; provided, however, that interest payable at fixed | 19 | | or variable rates shall not exceed that permitted in the Bond | 20 | | Authorization Act. State Serial Long Term Pension Obligation | 21 | | Bonds shall be payable at such place or places, within or | 22 | | without the State of Illinois, and may be made registrable as | 23 | | to either principal or as to both principal and interest, as | 24 | | shall be specified in the Bond Sale Order.
State Serial Long | 25 | | Term Pension Obligation Bonds may be callable or subject to | 26 | | purchase and retirement or tender and remarketing as fixed and |
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| 1 | | determined in the Bond Sale Order. The term of such State | 2 | | Serial Long Term Pension Obligation Bonds shall not exceed 30 | 3 | | years. | 4 | | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | 5 | | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | 6 | | 7-6-17; revised 8-8-17.)
| 7 | | (30 ILCS 330/11) (from Ch. 127, par. 661)
| 8 | | Sec. 11. Sale of Bonds. Except as otherwise provided in | 9 | | this Section,
Bonds shall be sold from time to time pursuant to
| 10 | | notice of sale and public bid or by negotiated sale
in such | 11 | | amounts and at such
times as is directed by the Governor, upon | 12 | | recommendation by the Director of
the
Governor's Office of | 13 | | Management and Budget. At least 25%, based on total principal | 14 | | amount, of all Bonds issued each fiscal year shall be sold | 15 | | pursuant to notice of sale and public bid. At all times during | 16 | | each fiscal year, no more than 75%, based on total principal | 17 | | amount, of the Bonds issued each fiscal year, shall have been | 18 | | sold by negotiated sale. Failure to satisfy the requirements in | 19 | | the preceding 2 sentences shall not affect the validity of any | 20 | | previously issued Bonds; provided that all Bonds authorized by | 21 | | Public Act 96-43 and Public Act 96-1497 shall not be included | 22 | | in determining compliance for any fiscal year with the | 23 | | requirements of the preceding 2 sentences; and further provided | 24 | | that refunding Bonds satisfying the requirements of Section 16 | 25 | | of this Act and sold during fiscal year 2009, 2010, 2011, 2017, |
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| 1 | | or 2018 shall not be subject to the requirements in the | 2 | | preceding 2 sentences.
| 3 | | If
any Bonds, including refunding Bonds, are to be sold by | 4 | | negotiated
sale, the
Director of the
Governor's Office of | 5 | | Management and Budget
shall comply with the
competitive request | 6 | | for proposal process set forth in the Illinois
Procurement Code | 7 | | and all other applicable requirements of that Code.
| 8 | | If Bonds are to be sold pursuant to notice of sale and | 9 | | public bid, the
Director of the
Governor's Office of Management | 10 | | and Budget may, from time to time, as Bonds are to be sold, | 11 | | advertise
the sale of the Bonds in at least 2 daily newspapers, | 12 | | one of which is
published in the City of Springfield and one in | 13 | | the City of Chicago. The sale
of the Bonds shall also be
| 14 | | advertised in the volume of the Illinois Procurement Bulletin | 15 | | that is
published by the Department of Central Management | 16 | | Services, and shall be published once at least
10 days prior to | 17 | | the date fixed
for the opening of the bids. The Director of the
| 18 | | Governor's Office of Management and Budget may
reschedule the | 19 | | date of sale upon the giving of such additional notice as the
| 20 | | Director deems adequate to inform prospective bidders of
such | 21 | | change; provided, however, that all other conditions of the | 22 | | sale shall
continue as originally advertised.
| 23 | | Executed Bonds shall, upon payment therefor, be delivered | 24 | | to the purchaser,
and the proceeds of Bonds shall be paid into | 25 | | the State Treasury as directed by
Section 12 of this Act.
| 26 | | All Income Tax Proceed Bonds shall comply with this |
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| 1 | | Section. Notwithstanding anything to the contrary, however, | 2 | | for purposes of complying with this Section, Income Tax Proceed | 3 | | Bonds, regardless of the number of series or issuances sold | 4 | | thereunder, shall be
considered a single issue or series. | 5 | | Furthermore, for purposes of complying with the competitive | 6 | | bidding requirements of this Section, the words "at all times" | 7 | | shall not apply to any such sale of the Income Tax Proceed | 8 | | Bonds. The Director of the Governor's Office of Management and | 9 | | Budget shall determine the time and manner of any competitive | 10 | | sale of the Income Tax Proceed Bonds; however, that sale shall | 11 | | under no circumstances take place later than 60 days after the | 12 | | State closes the sale of 75% of the Income Tax Proceed Bonds by | 13 | | negotiated sale. | 14 | | All State Serial Long Term Pension Obligation Bonds shall | 15 | | comply with this Section. Notwithstanding anything to the | 16 | | contrary, however, for purposes of complying with this Section, | 17 | | State Serial Long Term Pension Obligation Bonds, regardless of | 18 | | the number of series or issuances sold thereunder, shall be
| 19 | | considered a single issue or series. Furthermore, for purposes | 20 | | of complying with the competitive bidding requirements of this | 21 | | Section, the words "at all times" shall not apply to any such | 22 | | sale of the State Serial Long Term Pension Obligation Bonds. | 23 | | The Director of the Governor's Office of Management and Budget | 24 | | shall determine the time and manner of any competitive sale of | 25 | | the State Serial Long Term Pension Obligation Bonds; however, | 26 | | that sale shall under no circumstances take place later than 60 |
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| 1 | | days after the State closes the sale of 75% of the State Serial | 2 | | Long Term Pension Obligation Bonds by negotiated sale. | 3 | | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | 4 | | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | 5 | | 7-6-17; revised 8-15-17.)
| 6 | | (30 ILCS 330/12) (from Ch. 127, par. 662)
| 7 | | Sec. 12. Allocation of proceeds from sale of Bonds.
| 8 | | (a) Proceeds from the sale of Bonds, authorized by Section | 9 | | 3 of this Act,
shall be deposited in the separate fund known as | 10 | | the Capital Development Fund.
| 11 | | (b) Proceeds from the sale of Bonds, authorized by | 12 | | paragraph (a) of Section
4 of this Act, shall be deposited in | 13 | | the separate fund known as the
Transportation Bond, Series A | 14 | | Fund.
| 15 | | (c) Proceeds from the sale of Bonds, authorized by | 16 | | paragraphs (b) and (c)
of Section 4 of this Act, shall be | 17 | | deposited in the separate fund known
as the Transportation | 18 | | Bond, Series B Fund.
| 19 | | (c-1) Proceeds from the sale of Bonds, authorized by | 20 | | paragraph (d) of Section 4 of this Act, shall be deposited into | 21 | | the Transportation Bond Series D Fund, which is hereby created. | 22 | | (d) Proceeds from the sale of Bonds, authorized by Section | 23 | | 5 of this
Act, shall be deposited in the separate fund known as | 24 | | the School Construction
Fund.
| 25 | | (e) Proceeds from the sale of Bonds, authorized by Section |
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| 1 | | 6 of this Act,
shall be deposited in the separate fund known as | 2 | | the Anti-Pollution Fund.
| 3 | | (f) Proceeds from the sale of Bonds, authorized by Section | 4 | | 7 of this Act,
shall be deposited in the separate fund known as | 5 | | the Coal Development Fund.
| 6 | | (f-2) Proceeds from the sale of Bonds, authorized by | 7 | | Section 7.2 of this
Act, shall be deposited as set forth in | 8 | | Section 7.2.
| 9 | | (f-5) Proceeds from the sale of Bonds, authorized by | 10 | | Section 7.5 of this
Act, shall be deposited as set forth in | 11 | | Section 7.5.
| 12 | | (f-7) Proceeds from the sale of Bonds, authorized by | 13 | | Section 7.6 of this Act, shall be deposited as set forth in | 14 | | Section 7.6. | 15 | | (f-8) Proceeds from the sale of Bonds, authorized by | 16 | | Section 7.7 of this Act, shall be deposited as set forth in | 17 | | Section 7.7. | 18 | | (g) Proceeds from the sale of Bonds, authorized by Section | 19 | | 8 of this Act,
shall be deposited in
the Capital Development | 20 | | Fund.
| 21 | | (h) Subsequent to the issuance of any Bonds for the | 22 | | purposes described
in Sections 2 through 8 of this Act, the | 23 | | Governor and the Director of the
Governor's Office of | 24 | | Management and Budget may provide for the reallocation of | 25 | | unspent proceeds
of such Bonds to any other purposes authorized | 26 | | under said Sections of this
Act, subject to the limitations on |
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| 1 | | aggregate principal amounts contained
therein. Upon any such | 2 | | reallocation, such unspent proceeds shall be
transferred to the | 3 | | appropriate funds as determined by reference to
paragraphs (a) | 4 | | through (g) of this Section.
| 5 | | (Source: P.A. 100-23, eff. 7-6-17.)
| 6 | | (30 ILCS 330/13) (from Ch. 127, par. 663)
| 7 | | Sec. 13. Appropriation of proceeds from sale of Bonds.
| 8 | | (a) At all times, the proceeds from the sale of Bonds | 9 | | issued pursuant
to this Act are subject to appropriation by the | 10 | | General Assembly and,
except as provided in Sections 7.2 , and | 11 | | 7.6, and 7.7, may be obligated or expended only
with the | 12 | | written approval of the Governor, in such amounts, at such | 13 | | times,
and for such purposes as the respective
State agencies, | 14 | | as defined in Section 1-7 of the Illinois State Auditing
Act, | 15 | | as amended, deem necessary or desirable for the specific | 16 | | purposes
contemplated in Sections 2 through 8 of this Act. | 17 | | Notwithstanding any other provision of this Act, proceeds from | 18 | | the sale of Bonds issued pursuant to this Act appropriated by | 19 | | the General Assembly to the Architect of the Capitol may be | 20 | | obligated or expended by the Architect of the Capitol without | 21 | | the written approval of the Governor.
| 22 | | (b) Proceeds from the sale of Bonds for the purpose of | 23 | | development of
coal and alternative forms of energy shall be | 24 | | expended in such amounts and
at such times as the Department of | 25 | | Commerce and Economic Opportunity, with the
advice and |
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| 1 | | recommendation of the Illinois Coal Development Board for coal
| 2 | | development projects, may deem necessary and desirable for the | 3 | | specific
purpose contemplated by Section 7 of this Act. In | 4 | | considering the approval
of projects to be funded, the | 5 | | Department of Commerce and
Economic Opportunity shall give
| 6 | | special
consideration to projects designed to remove sulfur and | 7 | | other pollutants in
the preparation and utilization of coal, | 8 | | and in the use and operation of
electric utility generating | 9 | | plants and industrial facilities which utilize
Illinois coal as | 10 | | their primary source of fuel.
| 11 | | (c) Except as directed in subsection (c-1) or (c-2), any | 12 | | monies received by any officer or employee of the state
| 13 | | representing a reimbursement of expenditures previously paid | 14 | | from general
obligation bond proceeds shall be deposited into | 15 | | the General Obligation
Bond Retirement and Interest Fund | 16 | | authorized in Section 14 of this Act.
| 17 | | (c-1) Any money received by the Department of | 18 | | Transportation as reimbursement for expenditures for high | 19 | | speed rail purposes pursuant to appropriations from the | 20 | | Transportation Bond, Series B Fund for (i) CREATE (Chicago | 21 | | Region Environmental and Transportation Efficiency), (ii) High | 22 | | Speed Rail, or (iii) AMTRAK projects authorized by the federal | 23 | | government under the provisions of the American Recovery and | 24 | | Reinvestment Act of 2009 or the Safe Accountable Flexible | 25 | | Efficient Transportation Equity Act-A Legacy for Users | 26 | | (SAFETEA-LU), or any successor federal transportation |
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| 1 | | authorization Act, shall be deposited into the Federal High | 2 | | Speed Rail Trust Fund. | 3 | | (c-2) Any money received by the Department of | 4 | | Transportation as reimbursement for expenditures for transit | 5 | | capital purposes pursuant to appropriations from the | 6 | | Transportation Bond, Series B Fund for projects authorized by | 7 | | the federal government under the provisions of the American | 8 | | Recovery and Reinvestment Act of 2009 or the Safe Accountable | 9 | | Flexible Efficient Transportation Equity Act-A Legacy for | 10 | | Users (SAFETEA-LU), or any successor federal transportation | 11 | | authorization Act, shall be deposited into the Federal Mass | 12 | | Transit Trust Fund. | 13 | | (Source: P.A. 100-23, eff. 7-6-17 .)
| 14 | | Section 10. The State Pension Funds Continuing | 15 | | Appropriation Act is amended by adding Section 1.10 as follows: | 16 | | (40 ILCS 15/1.10 new) | 17 | | Sec. 1.10. Appropriations for State Serial Long Term | 18 | | Pension Obligation Bonds. If for any reason the aggregate | 19 | | appropriations made available are insufficient to meet the | 20 | | levels required for the payment of principal and interest due | 21 | | on State Serial Long Term Pension Obligation Bonds under | 22 | | Section 7.7 of the General Obligation Bond Act, this Section | 23 | | shall constitute a continuing appropriation of all amounts | 24 | | necessary for those purposes. |
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law. |
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