Full Text of SB3073 100th General Assembly
SB3073sam001 100TH GENERAL ASSEMBLY | Sen. Paul Schimpf Filed: 3/9/2018
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| 1 | | AMENDMENT TO SENATE BILL 3073
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3073 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Employees Group Insurance Act of 1971 | 5 | | is amended by changing Sections 3 and 10 as follows:
| 6 | | (5 ILCS 375/3) (from Ch. 127, par. 523)
| 7 | | Sec. 3. Definitions. Unless the context otherwise | 8 | | requires, the
following words and phrases as used in this Act | 9 | | shall have the following
meanings. The Department may define | 10 | | these and other words and phrases
separately for the purpose of | 11 | | implementing specific programs providing benefits
under this | 12 | | Act.
| 13 | | (a) "Administrative service organization" means any | 14 | | person, firm or
corporation experienced in the handling of | 15 | | claims which is
fully qualified, financially sound and capable | 16 | | of meeting the service
requirements of a contract of |
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| 1 | | administration executed with the Department.
| 2 | | (b) "Annuitant" means (1) an employee who retires, or has | 3 | | retired,
on or after January 1, 1966 on an immediate annuity | 4 | | under the provisions
of Articles 2, 14 (including an employee | 5 | | who has elected to receive an alternative retirement | 6 | | cancellation payment under Section 14-108.5 of the Illinois | 7 | | Pension Code in lieu of an annuity or who meets the criteria | 8 | | for retirement, but in lieu of receiving an annuity under that | 9 | | Article has elected to receive an accelerated pension benefit | 10 | | payment under Section 14-147.5 of that Article ), 15 (including | 11 | | an employee who has retired under the optional
retirement | 12 | | program established under Section 15-158.2 or who meets the | 13 | | criteria for retirement, but in lieu of receiving an annuity | 14 | | under that Article has elected to receive an accelerated | 15 | | pension benefit payment under Section 15-185.5 of the Article ),
| 16 | | paragraphs (2), (3), or (5) of Section 16-106 (including an | 17 | | employee who meets the criteria for retirement, but in lieu of | 18 | | receiving an annuity under that Article has elected to receive | 19 | | an accelerated pension benefit payment under Section 16-190.5 | 20 | | of the Illinois Pension Code) , or
Article 18 of the Illinois | 21 | | Pension Code; (2) any person who was receiving
group insurance | 22 | | coverage under this Act as of March 31, 1978 by
reason of his | 23 | | status as an annuitant, even though the annuity in relation
to | 24 | | which such coverage was provided is a proportional annuity | 25 | | based on less
than the minimum period of service required for a | 26 | | retirement annuity in
the system involved; (3) any person not |
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| 1 | | otherwise covered by this Act
who has retired as a | 2 | | participating member under Article 2 of the Illinois
Pension | 3 | | Code but is ineligible for the retirement annuity under Section
| 4 | | 2-119 of the Illinois Pension Code; (4) the spouse of any | 5 | | person who
is receiving a retirement annuity under Article 18 | 6 | | of the Illinois Pension
Code and who is covered under a group | 7 | | health insurance program sponsored
by a governmental employer | 8 | | other than the State of Illinois and who has
irrevocably | 9 | | elected to waive his or her coverage under this Act and to have
| 10 | | his or her spouse considered as the "annuitant" under this Act | 11 | | and not as
a "dependent"; or (5) an employee who retires, or | 12 | | has retired, from a
qualified position, as determined according | 13 | | to rules promulgated by the
Director, under a qualified local | 14 | | government, a qualified rehabilitation
facility, a qualified | 15 | | domestic violence shelter or service, or a qualified child | 16 | | advocacy center. (For definition
of "retired employee", see (p) | 17 | | post).
| 18 | | (b-5) (Blank).
| 19 | | (b-6) (Blank).
| 20 | | (b-7) (Blank).
| 21 | | (c) "Carrier" means (1) an insurance company, a corporation | 22 | | organized
under the Limited Health Service Organization Act or | 23 | | the Voluntary Health
Services Plan Act, a partnership, or other | 24 | | nongovernmental organization,
which is authorized to do group | 25 | | life or group health insurance business in
Illinois, or (2) the | 26 | | State of Illinois as a self-insurer.
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| 1 | | (d) "Compensation" means salary or wages payable on a | 2 | | regular
payroll by the State Treasurer on a warrant of the | 3 | | State Comptroller out
of any State, trust or federal fund, or | 4 | | by the Governor of the State
through a disbursing officer of | 5 | | the State out of a trust or out of
federal funds, or by any | 6 | | Department out of State, trust, federal or
other funds held by | 7 | | the State Treasurer or the Department, to any person
for | 8 | | personal services currently performed, and ordinary or | 9 | | accidental
disability benefits under Articles 2, 14, 15 | 10 | | (including ordinary or accidental
disability benefits under | 11 | | the optional retirement program established under
Section | 12 | | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or | 13 | | Article 18 of the Illinois Pension Code, for disability
| 14 | | incurred after January 1, 1966, or benefits payable under the | 15 | | Workers'
Compensation or Occupational Diseases Act or benefits | 16 | | payable under a sick
pay plan established in accordance with | 17 | | Section 36 of the State Finance Act.
"Compensation" also means | 18 | | salary or wages paid to an employee of any
qualified local | 19 | | government, qualified rehabilitation facility,
qualified | 20 | | domestic violence shelter or service, or qualified child | 21 | | advocacy center.
| 22 | | (e) "Commission" means the State Employees Group Insurance | 23 | | Advisory
Commission authorized by this Act. Commencing July 1, | 24 | | 1984, "Commission"
as used in this Act means the Commission on | 25 | | Government Forecasting and Accountability as
established by | 26 | | the Legislative Commission Reorganization Act of 1984.
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| 1 | | (f) "Contributory", when referred to as contributory | 2 | | coverage, shall
mean optional coverages or benefits elected by | 3 | | the member toward the cost of
which such member makes | 4 | | contribution, or which are funded in whole or in part
through | 5 | | the acceptance of a reduction in earnings or the foregoing of | 6 | | an
increase in earnings by an employee, as distinguished from | 7 | | noncontributory
coverage or benefits which are paid entirely by | 8 | | the State of Illinois
without reduction of the member's salary.
| 9 | | (g) "Department" means any department, institution, board,
| 10 | | commission, officer, court or any agency of the State | 11 | | government
receiving appropriations and having power to | 12 | | certify payrolls to the
Comptroller authorizing payments of | 13 | | salary and wages against such
appropriations as are made by the | 14 | | General Assembly from any State fund, or
against trust funds | 15 | | held by the State Treasurer and includes boards of
trustees of | 16 | | the retirement systems created by Articles 2, 14, 15, 16 and
18 | 17 | | of the Illinois Pension Code. "Department" also includes the | 18 | | Illinois
Comprehensive Health Insurance Board, the Board of | 19 | | Examiners established under
the Illinois Public Accounting | 20 | | Act, and the Illinois Finance Authority.
| 21 | | (h) "Dependent", when the term is used in the context of | 22 | | the health
and life plan, means a member's spouse and any child | 23 | | (1) from
birth to age 26 including an adopted child, a child | 24 | | who lives with the
member from the time of the placement for | 25 | | adoption until entry
of an order of adoption, a stepchild or | 26 | | adjudicated child, or a child who lives with the member
if such |
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| 1 | | member is a court appointed guardian of the child or (2)
age 19 | 2 | | or over who has a mental or physical disability from a cause | 3 | | originating prior to the age of 19 (age 26 if enrolled as an | 4 | | adult child dependent). For
the health plan only, the term | 5 | | "dependent" also includes (1) any person
enrolled prior to the | 6 | | effective date of this Section who is dependent upon
the member | 7 | | to the extent that the member may claim such person as a
| 8 | | dependent for income tax deduction purposes and (2) any person | 9 | | who
has received after June 30, 2000 an organ transplant and | 10 | | who is financially
dependent upon the member and eligible to be | 11 | | claimed as a dependent for income
tax purposes. A member | 12 | | requesting to cover any dependent must provide documentation as | 13 | | requested by the Department of Central Management Services and | 14 | | file with the Department any and all forms required by the | 15 | | Department.
| 16 | | (i) "Director" means the Director of the Illinois | 17 | | Department of Central
Management Services.
| 18 | | (j) "Eligibility period" means the period of time a member | 19 | | has to
elect enrollment in programs or to select benefits | 20 | | without regard to
age, sex or health.
| 21 | | (k) "Employee" means and includes each officer or employee | 22 | | in the
service of a department who (1) receives his | 23 | | compensation for
service rendered to the department on a | 24 | | warrant issued pursuant to a payroll
certified by a department | 25 | | or on a warrant or check issued and drawn by a
department upon | 26 | | a trust, federal or other fund or on a warrant issued
pursuant |
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| 1 | | to a payroll certified by an elected or duly appointed officer
| 2 | | of the State or who receives payment of the performance of | 3 | | personal
services on a warrant issued pursuant to a payroll | 4 | | certified by a
Department and drawn by the Comptroller upon the | 5 | | State Treasurer against
appropriations made by the General | 6 | | Assembly from any fund or against
trust funds held by the State | 7 | | Treasurer, and (2) is employed full-time or
part-time in a | 8 | | position normally requiring actual performance of duty
during | 9 | | not less than 1/2 of a normal work period, as established by | 10 | | the
Director in cooperation with each department, except that | 11 | | persons elected
by popular vote will be considered employees | 12 | | during the entire
term for which they are elected regardless of | 13 | | hours devoted to the
service of the State, and (3) except that | 14 | | "employee" does not include any
person who is not eligible by | 15 | | reason of such person's employment to
participate in one of the | 16 | | State retirement systems under Articles 2, 14, 15
(either the | 17 | | regular Article 15 system or the optional retirement program
| 18 | | established under Section 15-158.2) or 18, or under paragraph | 19 | | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension | 20 | | Code, but such term does include persons who are employed | 21 | | during
the 6 month qualifying period under Article 14 of the | 22 | | Illinois Pension
Code. Such term also includes any person who | 23 | | (1) after January 1, 1966,
is receiving ordinary or accidental | 24 | | disability benefits under Articles
2, 14, 15 (including | 25 | | ordinary or accidental disability benefits under the
optional | 26 | | retirement program established under Section 15-158.2), |
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| 1 | | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of | 2 | | the
Illinois Pension Code, for disability incurred after | 3 | | January 1, 1966, (2)
receives total permanent or total | 4 | | temporary disability under the Workers'
Compensation Act or | 5 | | Occupational Disease Act as a result of injuries
sustained or | 6 | | illness contracted in the course of employment with the
State | 7 | | of Illinois, or (3) is not otherwise covered under this Act and | 8 | | has
retired as a participating member under Article 2 of the | 9 | | Illinois Pension
Code but is ineligible for the retirement | 10 | | annuity under Section 2-119 of
the Illinois Pension Code. | 11 | | However, a person who satisfies the criteria
of the foregoing | 12 | | definition of "employee" except that such person is made
| 13 | | ineligible to participate in the State Universities Retirement | 14 | | System by
clause (4) of subsection (a) of Section 15-107 of the | 15 | | Illinois Pension
Code is also an "employee" for the purposes of | 16 | | this Act. "Employee" also
includes any person receiving or | 17 | | eligible for benefits under a sick pay
plan established in | 18 | | accordance with Section 36 of the State Finance Act.
"Employee" | 19 | | also includes (i) each officer or employee in the service of a
| 20 | | qualified local government, including persons appointed as | 21 | | trustees of
sanitary districts regardless of hours devoted to | 22 | | the service of the
sanitary district, (ii) each employee in the | 23 | | service of a qualified
rehabilitation facility, (iii) each | 24 | | full-time employee in the service of a
qualified domestic | 25 | | violence shelter or service, and (iv) each full-time employee | 26 | | in the service of a qualified child advocacy center, as |
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| 1 | | determined according to
rules promulgated by the Director.
| 2 | | (l) "Member" means an employee, annuitant, retired | 3 | | employee or survivor. In the case of an annuitant or retired | 4 | | employee who first becomes an annuitant or retired employee on | 5 | | or after the effective date of this amendatory Act of the 97th | 6 | | General Assembly, the individual must meet the minimum vesting | 7 | | requirements of the applicable retirement system in order to be | 8 | | eligible for group insurance benefits under that system. In the | 9 | | case of a survivor who first becomes a survivor on or after the | 10 | | effective date of this amendatory Act of the 97th General | 11 | | Assembly, the deceased employee, annuitant, or retired | 12 | | employee upon whom the annuity is based must have been eligible | 13 | | to participate in the group insurance system under the | 14 | | applicable retirement system in order for the survivor to be | 15 | | eligible for group insurance benefits under that system.
| 16 | | (m) "Optional coverages or benefits" means those coverages | 17 | | or
benefits available to the member on his or her voluntary | 18 | | election, and at
his or her own expense.
| 19 | | (n) "Program" means the group life insurance, health | 20 | | benefits and other
employee benefits designed and contracted | 21 | | for by the Director under this Act.
| 22 | | (o) "Health plan" means a health benefits
program offered
| 23 | | by the State of Illinois for persons eligible for the plan.
| 24 | | (p) "Retired employee" means any person who would be an | 25 | | annuitant as
that term is defined herein but for the fact that | 26 | | such person retired prior to
January 1, 1966. Such term also |
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| 1 | | includes any person formerly employed by
the University of | 2 | | Illinois in the Cooperative Extension Service who would
be an | 3 | | annuitant but for the fact that such person was made ineligible | 4 | | to
participate in the State Universities Retirement System by | 5 | | clause (4) of
subsection (a) of Section 15-107 of the Illinois
| 6 | | Pension Code.
| 7 | | (q) "Survivor" means a person receiving an annuity as a | 8 | | survivor of an
employee or of an annuitant. "Survivor" also | 9 | | includes: (1) the surviving
dependent of a person who satisfies | 10 | | the definition of "employee" except that
such person is made | 11 | | ineligible to participate in the State Universities
Retirement | 12 | | System by clause (4) of subsection (a)
of Section 15-107 of the | 13 | | Illinois Pension Code; (2) the surviving
dependent of any | 14 | | person formerly employed by the University of Illinois in
the | 15 | | Cooperative Extension Service who would be an annuitant except | 16 | | for the
fact that such person was made ineligible to | 17 | | participate in the State
Universities Retirement System by | 18 | | clause (4) of subsection (a) of Section
15-107 of the Illinois | 19 | | Pension Code; and (3) the surviving dependent of a person who | 20 | | was an annuitant under this Act by virtue of receiving an | 21 | | alternative retirement cancellation payment under Section | 22 | | 14-108.5 of the Illinois Pension Code.
| 23 | | (q-2) "SERS" means the State Employees' Retirement System | 24 | | of Illinois, created under Article 14 of the Illinois Pension | 25 | | Code.
| 26 | | (q-3) "SURS" means the State Universities Retirement |
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| 1 | | System, created under Article 15 of the Illinois Pension Code.
| 2 | | (q-4) "TRS" means the Teachers' Retirement System of the | 3 | | State of Illinois, created under Article 16 of the Illinois | 4 | | Pension Code.
| 5 | | (q-5) (Blank).
| 6 | | (q-6) (Blank).
| 7 | | (q-7) (Blank).
| 8 | | (r) "Medical services" means the services provided within | 9 | | the scope
of their licenses by practitioners in all categories | 10 | | licensed under the
Medical Practice Act of 1987.
| 11 | | (s) "Unit of local government" means any county, | 12 | | municipality,
township, school district (including a | 13 | | combination of school districts under
the Intergovernmental | 14 | | Cooperation Act), special district or other unit,
designated as | 15 | | a
unit of local government by law, which exercises limited | 16 | | governmental
powers or powers in respect to limited | 17 | | governmental subjects, any
not-for-profit association with a | 18 | | membership that primarily includes
townships and township | 19 | | officials, that has duties that include provision of
research | 20 | | service, dissemination of information, and other acts for the
| 21 | | purpose of improving township government, and that is funded | 22 | | wholly or
partly in accordance with Section 85-15 of the | 23 | | Township Code; any
not-for-profit corporation or association, | 24 | | with a membership consisting
primarily of municipalities, that | 25 | | operates its own utility system, and
provides research, | 26 | | training, dissemination of information, or other acts to
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| 1 | | promote cooperation between and among municipalities that | 2 | | provide utility
services and for the advancement of the goals | 3 | | and purposes of its
membership;
the Southern Illinois | 4 | | Collegiate Common Market, which is a consortium of higher
| 5 | | education institutions in Southern Illinois; the Illinois | 6 | | Association of
Park Districts; and any hospital provider that | 7 | | is owned by a county that has 100 or fewer hospital beds and | 8 | | has not already joined the program. "Qualified
local | 9 | | government" means a unit of local government approved by the | 10 | | Director and
participating in a program created under | 11 | | subsection (i) of Section 10 of this
Act.
| 12 | | (t) "Qualified rehabilitation facility" means any | 13 | | not-for-profit
organization that is accredited by the | 14 | | Commission on Accreditation of
Rehabilitation Facilities or | 15 | | certified by the Department
of Human Services (as successor to | 16 | | the Department of Mental Health
and Developmental | 17 | | Disabilities) to provide services to persons with
disabilities
| 18 | | and which receives funds from the State of Illinois for | 19 | | providing those
services, approved by the Director and | 20 | | participating in a program created
under subsection (j) of | 21 | | Section 10 of this Act.
| 22 | | (u) "Qualified domestic violence shelter or service" means | 23 | | any Illinois
domestic violence shelter or service and its | 24 | | administrative offices funded
by the Department of Human | 25 | | Services (as successor to the Illinois Department of
Public | 26 | | Aid),
approved by the Director and
participating in a program |
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| 1 | | created under subsection (k) of Section 10.
| 2 | | (v) "TRS benefit recipient" means a person who:
| 3 | | (1) is not a "member" as defined in this Section; and
| 4 | | (2) is receiving a monthly benefit or retirement | 5 | | annuity
under Article 16 of the Illinois Pension Code; and
| 6 | | (3) either (i) has at least 8 years of creditable | 7 | | service under Article
16 of the Illinois Pension Code, or | 8 | | (ii) was enrolled in the health insurance
program offered | 9 | | under that Article on January 1, 1996, or (iii) is the | 10 | | survivor
of a benefit recipient who had at least 8
years of | 11 | | creditable service under Article 16 of the Illinois Pension | 12 | | Code or
was enrolled in the health insurance program | 13 | | offered under that Article on
the effective date of this | 14 | | amendatory Act of 1995, or (iv) is a recipient or
survivor | 15 | | of a recipient of a disability benefit under Article 16 of | 16 | | the
Illinois Pension Code.
| 17 | | (w) "TRS dependent beneficiary" means a person who:
| 18 | | (1) is not a "member" or "dependent" as defined in this | 19 | | Section; and
| 20 | | (2) is a TRS benefit recipient's: (A) spouse, (B) | 21 | | dependent parent who
is receiving at least half of his or | 22 | | her support from the TRS benefit
recipient, or (C) natural, | 23 | | step, adjudicated, or adopted child who is (i) under age | 24 | | 26, (ii) was, on January 1, 1996, participating as a | 25 | | dependent
beneficiary in the health insurance program | 26 | | offered under Article 16 of the
Illinois Pension Code, or |
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| 1 | | (iii) age 19 or over who has a mental or physical | 2 | | disability from a cause originating prior to the age of 19 | 3 | | (age 26 if enrolled as an adult child).
| 4 | | "TRS dependent beneficiary" does not include, as indicated | 5 | | under paragraph (2) of this subsection (w), a dependent of the | 6 | | survivor of a TRS benefit recipient who first becomes a | 7 | | dependent of a survivor of a TRS benefit recipient on or after | 8 | | the effective date of this amendatory Act of the 97th General | 9 | | Assembly unless that dependent would have been eligible for | 10 | | coverage as a dependent of the deceased TRS benefit recipient | 11 | | upon whom the survivor benefit is based. | 12 | | (x) "Military leave" refers to individuals in basic
| 13 | | training for reserves, special/advanced training, annual | 14 | | training, emergency
call up, activation by the President of the | 15 | | United States, or any other training or duty in service to the | 16 | | United States Armed Forces.
| 17 | | (y) (Blank).
| 18 | | (z) "Community college benefit recipient" means a person | 19 | | who:
| 20 | | (1) is not a "member" as defined in this Section; and
| 21 | | (2) is receiving a monthly survivor's annuity or | 22 | | retirement annuity
under Article 15 of the Illinois Pension | 23 | | Code; and
| 24 | | (3) either (i) was a full-time employee of a community | 25 | | college district or
an association of community college | 26 | | boards created under the Public Community
College Act |
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| 1 | | (other than an employee whose last employer under Article | 2 | | 15 of the
Illinois Pension Code was a community college | 3 | | district subject to Article VII
of the Public Community | 4 | | College Act) and was eligible to participate in a group
| 5 | | health benefit plan as an employee during the time of | 6 | | employment with a
community college district (other than a | 7 | | community college district subject to
Article VII of the | 8 | | Public Community College Act) or an association of | 9 | | community
college boards, or (ii) is the survivor of a | 10 | | person described in item (i).
| 11 | | (aa) "Community college dependent beneficiary" means a | 12 | | person who:
| 13 | | (1) is not a "member" or "dependent" as defined in this | 14 | | Section; and
| 15 | | (2) is a community college benefit recipient's: (A) | 16 | | spouse, (B) dependent
parent who is receiving at least half | 17 | | of his or her support from the community
college benefit | 18 | | recipient, or (C) natural, step, adjudicated, or adopted | 19 | | child who is (i)
under age 26, or (ii)
age 19 or over and | 20 | | has a mental or physical disability from a cause | 21 | | originating prior to the age of 19 (age 26 if enrolled as | 22 | | an adult child).
| 23 | | "Community college dependent beneficiary" does not | 24 | | include, as indicated under paragraph (2) of this subsection | 25 | | (aa), a dependent of the survivor of a community college | 26 | | benefit recipient who first becomes a dependent of a survivor |
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| 1 | | of a community college benefit recipient on or after the | 2 | | effective date of this amendatory Act of the 97th General | 3 | | Assembly unless that dependent would have been eligible for | 4 | | coverage as a dependent of the deceased community college | 5 | | benefit recipient upon whom the survivor annuity is based. | 6 | | (bb) "Qualified child advocacy center" means any Illinois | 7 | | child advocacy center and its administrative offices funded by | 8 | | the Department of Children and Family Services, as defined by | 9 | | the Children's Advocacy Center Act (55 ILCS 80/), approved by | 10 | | the Director and participating in a program created under | 11 | | subsection (n) of Section 10.
| 12 | | (cc) "Placement for adoption" means the assumption and | 13 | | retention by a member of a legal obligation for total or | 14 | | partial support of a child in anticipation of adoption of the | 15 | | child. The child's placement with the member terminates upon | 16 | | the termination of such legal obligation. | 17 | | (Source: P.A. 99-143, eff. 7-27-15; 100-355, eff. 1-1-18 .)
| 18 | | (5 ILCS 375/10) (from Ch. 127, par. 530)
| 19 | | Sec. 10. Contributions by the State and members.
| 20 | | (a) The State shall pay the cost of basic non-contributory | 21 | | group life
insurance and, subject to member paid contributions | 22 | | set by the Department or
required by this Section and except as | 23 | | provided in this Section, the basic program of group health | 24 | | benefits on each
eligible member, except a member, not | 25 | | otherwise
covered by this Act, who has retired as a |
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| 1 | | participating member under Article 2
of the Illinois Pension | 2 | | Code but is ineligible for the retirement annuity under
Section | 3 | | 2-119 of the Illinois Pension Code, and part of each eligible | 4 | | member's
and retired member's premiums for health insurance | 5 | | coverage for enrolled
dependents as provided by Section 9. The | 6 | | State shall pay the cost of the basic
program of group health | 7 | | benefits only after benefits are reduced by the amount
of | 8 | | benefits covered by Medicare for all members and dependents
who | 9 | | are eligible for benefits under Social Security or
the Railroad | 10 | | Retirement system or who had sufficient Medicare-covered
| 11 | | government employment, except that such reduction in benefits | 12 | | shall apply only
to those members and dependents who (1) first | 13 | | become eligible
for such Medicare coverage on or after July 1, | 14 | | 1992; or (2) are
Medicare-eligible members or dependents of a | 15 | | local government unit which began
participation in the program | 16 | | on or after July 1, 1992; or (3) remain eligible
for, but no | 17 | | longer receive Medicare coverage which they had been receiving | 18 | | on
or after July 1, 1992. The Department may determine the | 19 | | aggregate level of the
State's contribution on the basis of | 20 | | actual cost of medical services adjusted
for age, sex or | 21 | | geographic or other demographic characteristics which affect
| 22 | | the costs of such programs.
| 23 | | The cost of participation in the basic program of group | 24 | | health benefits
for the dependent or survivor of a living or | 25 | | deceased retired employee who was
formerly employed by the | 26 | | University of Illinois in the Cooperative Extension
Service and |
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| 1 | | would be an annuitant but for the fact that he or she was made
| 2 | | ineligible to participate in the State Universities Retirement | 3 | | System by clause
(4) of subsection (a) of Section 15-107 of the | 4 | | Illinois Pension Code shall not
be greater than the cost of | 5 | | participation that would otherwise apply to that
dependent or | 6 | | survivor if he or she were the dependent or survivor of an
| 7 | | annuitant under the State Universities Retirement System.
| 8 | | (a-1) (Blank).
| 9 | | (a-2) (Blank).
| 10 | | (a-3) (Blank).
| 11 | | (a-4) (Blank).
| 12 | | (a-5) (Blank).
| 13 | | (a-6) (Blank).
| 14 | | (a-7) (Blank).
| 15 | | (a-8) Any annuitant, survivor, or retired employee may | 16 | | waive or terminate coverage in
the program of group health | 17 | | benefits. Any such annuitant, survivor, or retired employee
who | 18 | | has waived or terminated coverage may enroll or re-enroll in | 19 | | the
program of group health benefits only during the annual | 20 | | benefit choice period,
as determined by the Director; except | 21 | | that in the event of termination of
coverage due to nonpayment | 22 | | of premiums, the annuitant, survivor, or retired employee
may | 23 | | not re-enroll in the program.
| 24 | | (a-8.5) Beginning on the effective date of this amendatory | 25 | | Act of the 97th General Assembly, the Director of Central | 26 | | Management Services shall, on an annual basis, determine the |
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| 1 | | amount that the State shall contribute toward the basic program | 2 | | of group health benefits on behalf of annuitants (including | 3 | | individuals who (i) participated in the General Assembly | 4 | | Retirement System, the State Employees' Retirement System of | 5 | | Illinois, the State Universities Retirement System, the | 6 | | Teachers' Retirement System of the State of Illinois, or the | 7 | | Judges Retirement System of Illinois and (ii) qualify as | 8 | | annuitants under subsection (b) of Section 3 of this Act), | 9 | | survivors (including individuals who (i) receive an annuity as | 10 | | a survivor of an individual who participated in the General | 11 | | Assembly Retirement System, the State Employees' Retirement | 12 | | System of Illinois, the State Universities Retirement System, | 13 | | the Teachers' Retirement System of the State of Illinois, or | 14 | | the Judges Retirement System of Illinois and (ii) qualify as | 15 | | survivors under subsection (q) of Section 3 of this Act), and | 16 | | retired employees (as defined in subsection (p) of Section 3 of | 17 | | this Act). The remainder of the cost of coverage for each | 18 | | annuitant, survivor, or retired employee, as determined by the | 19 | | Director of Central Management Services, shall be the | 20 | | responsibility of that annuitant, survivor, or retired | 21 | | employee. | 22 | | Contributions required of annuitants, survivors, and | 23 | | retired employees shall be the same for all retirement systems | 24 | | and shall also be based on whether an individual has made an | 25 | | election under Section 15-135.1 of the Illinois Pension Code. | 26 | | Contributions may be based on annuitants', survivors', or |
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| 1 | | retired employees' Medicare eligibility, but may not be based | 2 | | on Social Security eligibility. | 3 | | (a-9) No later than May 1 of each calendar year, the | 4 | | Director
of Central Management Services shall certify in | 5 | | writing to the Executive
Secretary of the State Employees' | 6 | | Retirement System of Illinois the amounts
of the Medicare | 7 | | supplement health care premiums and the amounts of the
health | 8 | | care premiums for all other retirees who are not Medicare | 9 | | eligible.
| 10 | | A separate calculation of the premiums based upon the | 11 | | actual cost of each
health care plan shall be so certified.
| 12 | | The Director of Central Management Services shall provide | 13 | | to the
Executive Secretary of the State Employees' Retirement | 14 | | System of
Illinois such information, statistics, and other data | 15 | | as he or she
may require to review the premium amounts | 16 | | certified by the Director
of Central Management Services.
| 17 | | The Department of Central Management Services, or any | 18 | | successor agency designated to procure healthcare contracts | 19 | | pursuant to this Act, is authorized to establish funds, | 20 | | separate accounts provided by any bank or banks as defined by | 21 | | the Illinois Banking Act, or separate accounts provided by any | 22 | | savings and loan association or associations as defined by the | 23 | | Illinois Savings and Loan Act of 1985 to be held by the | 24 | | Director, outside the State treasury, for the purpose of | 25 | | receiving the transfer of moneys from the Local Government | 26 | | Health Insurance Reserve Fund. The Department may promulgate |
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| 1 | | rules further defining the methodology for the transfers. Any | 2 | | interest earned by moneys in the funds or accounts shall inure | 3 | | to the Local Government Health Insurance Reserve Fund. The | 4 | | transferred moneys, and interest accrued thereon, shall be used | 5 | | exclusively for transfers to administrative service | 6 | | organizations or their financial institutions for payments of | 7 | | claims to claimants and providers under the self-insurance | 8 | | health plan. The transferred moneys, and interest accrued | 9 | | thereon, shall not be used for any other purpose including, but | 10 | | not limited to, reimbursement of administration fees due the | 11 | | administrative service organization pursuant to its contract | 12 | | or contracts with the Department.
| 13 | | (a-10) To the extent that participation, benefits, or | 14 | | premiums under this Act are based on a person's service credit | 15 | | under an Article of the Illinois Pension Code, service credit | 16 | | terminated in exchange for an accelerated pension benefit | 17 | | payment under Section 14-147.5, 15-185.5, or 16-190.5 of that | 18 | | Code shall be included in determining a person's service credit | 19 | | for the purposes of this Act. | 20 | | (b) State employees who become eligible for this program on | 21 | | or after January
1, 1980 in positions normally requiring actual | 22 | | performance of duty not less
than 1/2 of a normal work period | 23 | | but not equal to that of a normal work period,
shall be given | 24 | | the option of participating in the available program. If the
| 25 | | employee elects coverage, the State shall contribute on behalf | 26 | | of such employee
to the cost of the employee's benefit and any |
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| 1 | | applicable dependent supplement,
that sum which bears the same | 2 | | percentage as that percentage of time the
employee regularly | 3 | | works when compared to normal work period.
| 4 | | (c) The basic non-contributory coverage from the basic | 5 | | program of
group health benefits shall be continued for each | 6 | | employee not in pay status or
on active service by reason of | 7 | | (1) leave of absence due to illness or injury,
(2) authorized | 8 | | educational leave of absence or sabbatical leave, or (3)
| 9 | | military leave. This coverage shall continue until
expiration | 10 | | of authorized leave and return to active service, but not to | 11 | | exceed
24 months for leaves under item (1) or (2). This | 12 | | 24-month limitation and the
requirement of returning to active | 13 | | service shall not apply to persons receiving
ordinary or | 14 | | accidental disability benefits or retirement benefits through | 15 | | the
appropriate State retirement system or benefits under the | 16 | | Workers' Compensation
or Occupational Disease Act.
| 17 | | (d) The basic group life insurance coverage shall continue, | 18 | | with
full State contribution, where such person is (1) absent | 19 | | from active
service by reason of disability arising from any | 20 | | cause other than
self-inflicted, (2) on authorized educational | 21 | | leave of absence or
sabbatical leave, or (3) on military leave.
| 22 | | (e) Where the person is in non-pay status for a period in | 23 | | excess of
30 days or on leave of absence, other than by reason | 24 | | of disability,
educational or sabbatical leave, or military | 25 | | leave, such
person may continue coverage only by making | 26 | | personal
payment equal to the amount normally contributed by |
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| 1 | | the State on such person's
behalf. Such payments and coverage | 2 | | may be continued: (1) until such time as
the person returns to | 3 | | a status eligible for coverage at State expense, but not
to | 4 | | exceed 24 months or (2) until such person's employment or | 5 | | annuitant status
with the State is terminated (exclusive of any | 6 | | additional service imposed pursuant to law).
| 7 | | (f) The Department shall establish by rule the extent to | 8 | | which other
employee benefits will continue for persons in | 9 | | non-pay status or who are
not in active service.
| 10 | | (g) The State shall not pay the cost of the basic | 11 | | non-contributory
group life insurance, program of health | 12 | | benefits and other employee benefits
for members who are | 13 | | survivors as defined by paragraphs (1) and (2) of
subsection | 14 | | (q) of Section 3 of this Act. The costs of benefits for these
| 15 | | survivors shall be paid by the survivors or by the University | 16 | | of Illinois
Cooperative Extension Service, or any combination | 17 | | thereof.
However, the State shall pay the amount of the | 18 | | reduction in the cost of
participation, if any, resulting from | 19 | | the amendment to subsection (a) made
by this amendatory Act of | 20 | | the 91st General Assembly.
| 21 | | (h) Those persons occupying positions with any department | 22 | | as a result
of emergency appointments pursuant to Section 8b.8 | 23 | | of the Personnel Code
who are not considered employees under | 24 | | this Act shall be given the option
of participating in the | 25 | | programs of group life insurance, health benefits and
other | 26 | | employee benefits. Such persons electing coverage may |
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| 1 | | participate only
by making payment equal to the amount normally | 2 | | contributed by the State for
similarly situated employees. Such | 3 | | amounts shall be determined by the
Director. Such payments and | 4 | | coverage may be continued until such time as the
person becomes | 5 | | an employee pursuant to this Act or such person's appointment | 6 | | is
terminated.
| 7 | | (i) Any unit of local government within the State of | 8 | | Illinois
may apply to the Director to have its employees, | 9 | | annuitants, and their
dependents provided group health | 10 | | coverage under this Act on a non-insured
basis. To participate, | 11 | | a unit of local government must agree to enroll
all of its | 12 | | employees, who may select coverage under either the State group
| 13 | | health benefits plan or a health maintenance organization that | 14 | | has
contracted with the State to be available as a health care | 15 | | provider for
employees as defined in this Act. A unit of local | 16 | | government must remit the
entire cost of providing coverage | 17 | | under the State group health benefits plan
or, for coverage | 18 | | under a health maintenance organization, an amount determined
| 19 | | by the Director based on an analysis of the sex, age, | 20 | | geographic location, or
other relevant demographic variables | 21 | | for its employees, except that the unit of
local government | 22 | | shall not be required to enroll those of its employees who are
| 23 | | covered spouses or dependents under this plan or another group | 24 | | policy or plan
providing health benefits as long as (1) an | 25 | | appropriate official from the unit
of local government attests | 26 | | that each employee not enrolled is a covered spouse
or |
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| 1 | | dependent under this plan or another group policy or plan, and | 2 | | (2) at least
50% of the employees are enrolled and the unit of | 3 | | local government remits
the entire cost of providing coverage | 4 | | to those employees, except that a
participating school district | 5 | | must have enrolled at least 50% of its full-time
employees who | 6 | | have not waived coverage under the district's group health
plan | 7 | | by participating in a component of the district's cafeteria | 8 | | plan. A
participating school district is not required to enroll | 9 | | a full-time employee
who has waived coverage under the | 10 | | district's health plan, provided that an
appropriate official | 11 | | from the participating school district attests that the
| 12 | | full-time employee has waived coverage by participating in a | 13 | | component of the
district's cafeteria plan. For the purposes of | 14 | | this subsection, "participating
school district" includes a | 15 | | unit of local government whose primary purpose is
education as | 16 | | defined by the Department's rules.
| 17 | | Employees of a participating unit of local government who | 18 | | are not enrolled
due to coverage under another group health | 19 | | policy or plan may enroll in
the event of a qualifying change | 20 | | in status, special enrollment, special
circumstance as defined | 21 | | by the Director, or during the annual Benefit Choice
Period. A | 22 | | participating unit of local government may also elect to cover | 23 | | its
annuitants. Dependent coverage shall be offered on an | 24 | | optional basis, with the
costs paid by the unit of local | 25 | | government, its employees, or some combination
of the two as | 26 | | determined by the unit of local government. The unit of local
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| 1 | | government shall be responsible for timely collection and | 2 | | transmission of
dependent premiums.
| 3 | | The Director shall annually determine monthly rates of | 4 | | payment, subject
to the following constraints:
| 5 | | (1) In the first year of coverage, the rates shall be | 6 | | equal to the
amount normally charged to State employees for | 7 | | elected optional coverages
or for enrolled dependents | 8 | | coverages or other contributory coverages, or
contributed | 9 | | by the State for basic insurance coverages on behalf of its
| 10 | | employees, adjusted for differences between State | 11 | | employees and employees
of the local government in age, | 12 | | sex, geographic location or other relevant
demographic | 13 | | variables, plus an amount sufficient to pay for the | 14 | | additional
administrative costs of providing coverage to | 15 | | employees of the unit of
local government and their | 16 | | dependents.
| 17 | | (2) In subsequent years, a further adjustment shall be | 18 | | made to reflect
the actual prior years' claims experience | 19 | | of the employees of the unit of
local government.
| 20 | | In the case of coverage of local government employees under | 21 | | a health
maintenance organization, the Director shall annually | 22 | | determine for each
participating unit of local government the | 23 | | maximum monthly amount the unit
may contribute toward that | 24 | | coverage, based on an analysis of (i) the age,
sex, geographic | 25 | | location, and other relevant demographic variables of the
| 26 | | unit's employees and (ii) the cost to cover those employees |
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| 1 | | under the State
group health benefits plan. The Director may | 2 | | similarly determine the
maximum monthly amount each unit of | 3 | | local government may contribute toward
coverage of its | 4 | | employees' dependents under a health maintenance organization.
| 5 | | Monthly payments by the unit of local government or its | 6 | | employees for
group health benefits plan or health maintenance | 7 | | organization coverage shall
be deposited in the Local | 8 | | Government Health Insurance Reserve Fund.
| 9 | | The Local Government Health Insurance Reserve Fund is | 10 | | hereby created as a nonappropriated trust fund to be held | 11 | | outside the State Treasury, with the State Treasurer as | 12 | | custodian. The Local Government Health Insurance Reserve Fund | 13 | | shall be a continuing
fund not subject to fiscal year | 14 | | limitations. The Local Government Health Insurance Reserve | 15 | | Fund is not subject to administrative charges or charge-backs, | 16 | | including but not limited to those authorized under Section 8h | 17 | | of the State Finance Act. All revenues arising from the | 18 | | administration of the health benefits program established | 19 | | under this Section shall be deposited into the Local Government | 20 | | Health Insurance Reserve Fund. Any interest earned on moneys in | 21 | | the Local Government Health Insurance Reserve Fund shall be | 22 | | deposited into the Fund. All expenditures from this Fund
shall | 23 | | be used for payments for health care benefits for local | 24 | | government and rehabilitation facility
employees, annuitants, | 25 | | and dependents, and to reimburse the Department or
its | 26 | | administrative service organization for all expenses incurred |
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| 1 | | in the
administration of benefits. No other State funds may be | 2 | | used for these
purposes.
| 3 | | A local government employer's participation or desire to | 4 | | participate
in a program created under this subsection shall | 5 | | not limit that employer's
duty to bargain with the | 6 | | representative of any collective bargaining unit
of its | 7 | | employees.
| 8 | | (j) Any rehabilitation facility within the State of | 9 | | Illinois may apply
to the Director to have its employees, | 10 | | annuitants, and their eligible
dependents provided group | 11 | | health coverage under this Act on a non-insured
basis. To | 12 | | participate, a rehabilitation facility must agree to enroll all
| 13 | | of its employees and remit the entire cost of providing such | 14 | | coverage for
its employees, except that the rehabilitation | 15 | | facility shall not be
required to enroll those of its employees | 16 | | who are covered spouses or
dependents under this plan or | 17 | | another group policy or plan providing health
benefits as long | 18 | | as (1) an appropriate official from the rehabilitation
facility | 19 | | attests that each employee not enrolled is a covered spouse or
| 20 | | dependent under this plan or another group policy or plan, and | 21 | | (2) at least
50% of the employees are enrolled and the | 22 | | rehabilitation facility remits
the entire cost of providing | 23 | | coverage to those employees. Employees of a
participating | 24 | | rehabilitation facility who are not enrolled due to coverage
| 25 | | under another group health policy or plan may enroll
in the | 26 | | event of a qualifying change in status, special enrollment, |
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| 1 | | special
circumstance as defined by the Director, or during the | 2 | | annual Benefit Choice
Period. A participating rehabilitation | 3 | | facility may also elect
to cover its annuitants. Dependent | 4 | | coverage shall be offered on an optional
basis, with the costs | 5 | | paid by the rehabilitation facility, its employees, or
some | 6 | | combination of the 2 as determined by the rehabilitation | 7 | | facility. The
rehabilitation facility shall be responsible for | 8 | | timely collection and
transmission of dependent premiums.
| 9 | | The Director shall annually determine quarterly rates of | 10 | | payment, subject
to the following constraints:
| 11 | | (1) In the first year of coverage, the rates shall be | 12 | | equal to the amount
normally charged to State employees for | 13 | | elected optional coverages or for
enrolled dependents | 14 | | coverages or other contributory coverages on behalf of
its | 15 | | employees, adjusted for differences between State | 16 | | employees and
employees of the rehabilitation facility in | 17 | | age, sex, geographic location
or other relevant | 18 | | demographic variables, plus an amount sufficient to pay
for | 19 | | the additional administrative costs of providing coverage | 20 | | to employees
of the rehabilitation facility and their | 21 | | dependents.
| 22 | | (2) In subsequent years, a further adjustment shall be | 23 | | made to reflect
the actual prior years' claims experience | 24 | | of the employees of the
rehabilitation facility.
| 25 | | Monthly payments by the rehabilitation facility or its | 26 | | employees for
group health benefits shall be deposited in the |
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| 1 | | Local Government Health
Insurance Reserve Fund.
| 2 | | (k) Any domestic violence shelter or service within the | 3 | | State of Illinois
may apply to the Director to have its | 4 | | employees, annuitants, and their
dependents provided group | 5 | | health coverage under this Act on a non-insured
basis. To | 6 | | participate, a domestic violence shelter or service must agree | 7 | | to
enroll all of its employees and pay the entire cost of | 8 | | providing such coverage
for its employees. The domestic | 9 | | violence shelter shall not be required to enroll those of its | 10 | | employees who are covered spouses or dependents under this plan | 11 | | or another group policy or plan providing health benefits as | 12 | | long as (1) an appropriate official from the domestic violence | 13 | | shelter attests that each employee not enrolled is a covered | 14 | | spouse or dependent under this plan or another group policy or | 15 | | plan and (2) at least 50% of the employees are enrolled and the | 16 | | domestic violence shelter remits the entire cost of providing | 17 | | coverage to those employees. Employees of a participating | 18 | | domestic violence shelter who are not enrolled due to coverage | 19 | | under another group health policy or plan may enroll in the | 20 | | event of a qualifying change in status, special enrollment, or | 21 | | special circumstance as defined by the Director or during the | 22 | | annual Benefit Choice Period. A participating domestic | 23 | | violence shelter may also elect
to cover its annuitants. | 24 | | Dependent coverage shall be offered on an optional
basis, with
| 25 | | employees, or some combination of the 2 as determined by the | 26 | | domestic violence
shelter or service. The domestic violence |
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| 1 | | shelter or service shall be
responsible for timely collection | 2 | | and transmission of dependent premiums.
| 3 | | The Director shall annually determine rates of payment,
| 4 | | subject to the following constraints:
| 5 | | (1) In the first year of coverage, the rates shall be | 6 | | equal to the
amount normally charged to State employees for | 7 | | elected optional coverages
or for enrolled dependents | 8 | | coverages or other contributory coverages on
behalf of its | 9 | | employees, adjusted for differences between State | 10 | | employees and
employees of the domestic violence shelter or | 11 | | service in age, sex, geographic
location or other relevant | 12 | | demographic variables, plus an amount sufficient
to pay for | 13 | | the additional administrative costs of providing coverage | 14 | | to
employees of the domestic violence shelter or service | 15 | | and their dependents.
| 16 | | (2) In subsequent years, a further adjustment shall be | 17 | | made to reflect
the actual prior years' claims experience | 18 | | of the employees of the domestic
violence shelter or | 19 | | service.
| 20 | | Monthly payments by the domestic violence shelter or | 21 | | service or its employees
for group health insurance shall be | 22 | | deposited in the Local Government Health
Insurance Reserve | 23 | | Fund.
| 24 | | (l) A public community college or entity organized pursuant | 25 | | to the
Public Community College Act may apply to the Director | 26 | | initially to have
only annuitants not covered prior to July 1, |
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| 1 | | 1992 by the district's health
plan provided health coverage | 2 | | under this Act on a non-insured basis. The
community college | 3 | | must execute a 2-year contract to participate in the
Local | 4 | | Government Health Plan.
Any annuitant may enroll in the event | 5 | | of a qualifying change in status, special
enrollment, special | 6 | | circumstance as defined by the Director, or during the
annual | 7 | | Benefit Choice Period.
| 8 | | The Director shall annually determine monthly rates of | 9 | | payment subject to
the following constraints: for those | 10 | | community colleges with annuitants
only enrolled, first year | 11 | | rates shall be equal to the average cost to cover
claims for a | 12 | | State member adjusted for demographics, Medicare
| 13 | | participation, and other factors; and in the second year, a | 14 | | further adjustment
of rates shall be made to reflect the actual | 15 | | first year's claims experience
of the covered annuitants.
| 16 | | (l-5) The provisions of subsection (l) become inoperative | 17 | | on July 1, 1999.
| 18 | | (m) The Director shall adopt any rules deemed necessary for
| 19 | | implementation of this amendatory Act of 1989 (Public Act | 20 | | 86-978).
| 21 | | (n) Any child advocacy center within the State of Illinois | 22 | | may apply to the Director to have its employees, annuitants, | 23 | | and their dependents provided group health coverage under this | 24 | | Act on a non-insured basis. To participate, a child advocacy | 25 | | center must agree to enroll all of its employees and pay the | 26 | | entire cost of providing coverage for its employees. The child
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| 1 | | advocacy center shall not be required to enroll those of its
| 2 | | employees who are covered spouses or dependents under this plan
| 3 | | or another group policy or plan providing health benefits as
| 4 | | long as (1) an appropriate official from the child advocacy
| 5 | | center attests that each employee not enrolled is a covered
| 6 | | spouse or dependent under this plan or another group policy or
| 7 | | plan and (2) at least 50% of the employees are enrolled and the | 8 | | child advocacy center remits the entire cost of providing | 9 | | coverage to those employees. Employees of a participating child | 10 | | advocacy center who are not enrolled due to coverage under | 11 | | another group health policy or plan may enroll in the event of | 12 | | a qualifying change in status, special enrollment, or special | 13 | | circumstance as defined by the Director or during the annual | 14 | | Benefit Choice Period. A participating child advocacy center | 15 | | may also elect to cover its annuitants. Dependent coverage | 16 | | shall be offered on an optional basis, with the costs paid by | 17 | | the child advocacy center, its employees, or some combination | 18 | | of the 2 as determined by the child advocacy center. The child | 19 | | advocacy center shall be responsible for timely collection and | 20 | | transmission of dependent premiums. | 21 | | The Director shall annually determine rates of payment, | 22 | | subject to the following constraints: | 23 | | (1) In the first year of coverage, the rates shall be | 24 | | equal to the amount normally charged to State employees for | 25 | | elected optional coverages or for enrolled dependents | 26 | | coverages or other contributory coverages on behalf of its |
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| 1 | | employees, adjusted for differences between State | 2 | | employees and employees of the child advocacy center in | 3 | | age, sex, geographic location, or other relevant | 4 | | demographic variables, plus an amount sufficient to pay for | 5 | | the additional administrative costs of providing coverage | 6 | | to employees of the child advocacy center and their | 7 | | dependents. | 8 | | (2) In subsequent years, a further adjustment shall be | 9 | | made to reflect the actual prior years' claims experience | 10 | | of the employees of the child advocacy center. | 11 | | Monthly payments by the child advocacy center or its | 12 | | employees for group health insurance shall be deposited into | 13 | | the Local Government Health Insurance Reserve Fund. | 14 | | (Source: P.A. 97-695, eff. 7-1-12; 98-488, eff. 8-16-13 .)
| 15 | | Section 10. The Illinois Finance Authority Act is amended | 16 | | by changing Section 801-40 as follows:
| 17 | | (20 ILCS 3501/801-40)
| 18 | | Sec. 801-40. In addition to the powers otherwise authorized | 19 | | by law and in
addition to the foregoing general corporate | 20 | | powers, the Authority shall also
have the following additional | 21 | | specific powers to be exercised in furtherance of
the purposes | 22 | | of this Act.
| 23 | | (a) The Authority shall have power (i) to accept grants, | 24 | | loans or
appropriations from the federal government or the |
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| 1 | | State, or any agency or
instrumentality thereof, to be used for | 2 | | the operating expenses of the
Authority,
or for any purposes of | 3 | | the Authority, including the making of direct loans of
such | 4 | | funds with respect to projects, and (ii) to enter into any | 5 | | agreement with
the federal government or the State, or any | 6 | | agency or instrumentality thereof,
in relationship to such | 7 | | grants, loans or appropriations.
| 8 | | (b) The Authority shall have power to procure and enter | 9 | | into contracts for
any
type of insurance and indemnity | 10 | | agreements covering loss or damage to property
from any cause, | 11 | | including loss of use and occupancy, or covering any other
| 12 | | insurable risk.
| 13 | | (c) The Authority shall have the continuing power to issue | 14 | | bonds for its
corporate purposes. Bonds may be issued by the | 15 | | Authority in one or more series
and may provide for the payment | 16 | | of any interest deemed necessary on such bonds,
of the costs of | 17 | | issuance of such bonds, of any premium on any insurance, or of
| 18 | | the cost of any guarantees, letters of credit or other similar | 19 | | documents, may
provide for the funding of the reserves deemed | 20 | | necessary in connection with
such bonds, and may provide for | 21 | | the refunding or advance refunding of any bonds
or
for accounts | 22 | | deemed necessary in connection with any purpose of the | 23 | | Authority.
The bonds may bear interest payable at any time or | 24 | | times and at any rate or
rates, notwithstanding any other | 25 | | provision of law to the contrary, and such
rate or rates may be | 26 | | established by an index or formula which may be
implemented or
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| 1 | | established by persons appointed or retained therefor by the | 2 | | Authority, or may
bear no interest or may bear interest payable | 3 | | at maturity or upon redemption
prior to maturity, may bear such | 4 | | date or dates, may be payable at such time or
times and at such | 5 | | place or places, may mature at any time or times not later
than | 6 | | 40 years from the date of issuance, may be sold at public or | 7 | | private sale
at such time or times and at such price or prices, | 8 | | may be secured by such
pledges, reserves, guarantees, letters | 9 | | of credit, insurance contracts or other
similar credit support | 10 | | or liquidity instruments, may be executed in such
manner, may | 11 | | be subject to redemption prior to maturity, may provide for the
| 12 | | registration of the bonds, and may be subject to such other | 13 | | terms and
conditions all as may
be provided by the resolution | 14 | | or indenture authorizing the issuance of such
bonds. The holder | 15 | | or holders of any bonds issued by the Authority may bring
suits | 16 | | at law or proceedings in equity to compel the performance and | 17 | | observance
by any person or by the Authority or any of its | 18 | | agents or employees of any
contract or covenant made with the | 19 | | holders of such bonds and to compel such
person or the | 20 | | Authority and any of its agents or employees to perform any
| 21 | | duties
required to be performed for the benefit of the holders | 22 | | of any such bonds by
the provision of the resolution | 23 | | authorizing their issuance, and to enjoin such
person or the | 24 | | Authority and any of its agents or employees from taking any
| 25 | | action in conflict with any such contract or covenant.
| 26 | | Notwithstanding the form and tenor of any such bonds and in the |
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| 1 | | absence of any
express recital on the face thereof that it is | 2 | | non-negotiable, all such bonds
shall be negotiable | 3 | | instruments. Pending the preparation and execution of any
such | 4 | | bonds, temporary bonds may be issued as provided by the | 5 | | resolution.
The bonds shall be sold by the Authority in such | 6 | | manner as it shall determine.
The bonds may be secured as | 7 | | provided in the authorizing resolution by the
receipts, | 8 | | revenues, income and other available funds of the Authority and | 9 | | by
any amounts derived by the Authority from the loan agreement | 10 | | or lease agreement
with respect to the project or projects; and | 11 | | bonds may be issued as general
obligations of the Authority | 12 | | payable from such revenues, funds and obligations
of the | 13 | | Authority as the bond resolution shall provide, or may be | 14 | | issued as
limited obligations with a claim for payment solely | 15 | | from such revenues, funds
and obligations as the bond | 16 | | resolution shall provide. The Authority may grant a
specific | 17 | | pledge or assignment of and lien on or security interest in | 18 | | such
rights, revenues, income, or amounts and may grant a | 19 | | specific pledge or
assignment of and lien on or security | 20 | | interest in any reserves, funds or
accounts established in the | 21 | | resolution authorizing the issuance of bonds. Any
such pledge, | 22 | | assignment, lien or security interest for the benefit of the
| 23 | | holders of the Authority's bonds shall be valid and binding | 24 | | from the time the
bonds are issued without any physical | 25 | | delivery or further act, and shall be
valid and binding as | 26 | | against and prior to the claims of all other parties
having |
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| 1 | | claims against the Authority or any other person irrespective | 2 | | of whether
the
other parties have notice of the pledge, | 3 | | assignment, lien or security interest.
As evidence of such | 4 | | pledge, assignment, lien and security interest, the
Authority | 5 | | may execute and deliver a mortgage, trust agreement, indenture | 6 | | or
security agreement or an assignment thereof.
A remedy for | 7 | | any breach or default of the terms of any such agreement by the
| 8 | | Authority may be by mandamus proceedings in any court of | 9 | | competent jurisdiction
to compel the performance and | 10 | | compliance therewith, but the agreement may
prescribe by whom | 11 | | or on whose behalf such action may be instituted.
It is | 12 | | expressly understood that the Authority may, but need not, | 13 | | acquire title
to any project with respect to which it exercises | 14 | | its authority.
| 15 | | (c-5) The Authority shall have the power to issue State | 16 | | Pension Obligation Acceleration Bonds if in any fiscal year the | 17 | | amount appropriated for all accelerated pension benefit | 18 | | payments is less than the amount required for those payments. | 19 | | The proceeds from the State Pension Obligation Acceleration | 20 | | Bonds issued under this subsection may only be used to pay for | 21 | | accelerated pension benefit payments for the fiscal year in | 22 | | which the State Pension Obligation Acceleration Bonds are | 23 | | issued. | 24 | | The Authority shall not
have outstanding at any one time | 25 | | State Pension Obligation Acceleration Bonds for any of the | 26 | | purposes
of this subsection in an aggregate principal amount |
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| 1 | | exceeding
$250,000,000, excluding bonds issued to refund | 2 | | outstanding
State Pension Obligation Acceleration Bonds. | 3 | | (d) With respect to the powers granted by this Act, the | 4 | | Authority may adopt
rules and regulations prescribing the | 5 | | procedures by which persons may apply for
assistance under this | 6 | | Act. Nothing herein shall be deemed to preclude the
Authority, | 7 | | prior to the filing of any formal application, from conducting
| 8 | | preliminary discussions and investigations with respect to the | 9 | | subject matter
of any prospective application.
| 10 | | (e) The Authority shall have power to acquire by purchase, | 11 | | lease, gift or
otherwise any property or rights therein from | 12 | | any person useful for its
purposes, whether improved for the | 13 | | purposes of any prospective project, or
unimproved. The | 14 | | Authority may also accept any donation of funds for its
| 15 | | purposes from any such source. The Authority shall have no | 16 | | independent power of
condemnation but may acquire any property | 17 | | or rights therein obtained upon
condemnation by any other | 18 | | authority, governmental entity or unit of local
government with | 19 | | such power.
| 20 | | (f) The Authority shall have power to develop, construct | 21 | | and improve either
under its own direction, or through | 22 | | collaboration with any approved applicant,
or to acquire | 23 | | through purchase or otherwise, any project, using for such
| 24 | | purpose the proceeds derived from the sale of its bonds or from | 25 | | governmental
loans or
grants, and to hold title in the name of | 26 | | the Authority to such projects.
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| 1 | | (g) The Authority shall have power to lease pursuant to a | 2 | | lease agreement
any
project so developed and constructed or | 3 | | acquired to the approved tenant on such
terms and conditions as | 4 | | may be appropriate to further the purposes of this Act
and to | 5 | | maintain the credit of the Authority. Any such lease may | 6 | | provide for
either the Authority or the approved tenant to | 7 | | assume initially, in whole or in
part, the costs of | 8 | | maintenance, repair and improvements during the leasehold
| 9 | | period. In no case, however, shall the total rentals from any | 10 | | project during
any initial leasehold period or the total loan | 11 | | repayments to be made pursuant
to any loan agreement, be less | 12 | | than an amount necessary to return over such
lease
or loan | 13 | | period (1) all costs incurred in connection with the | 14 | | development,
construction, acquisition or improvement of the | 15 | | project and for repair,
maintenance and improvements thereto | 16 | | during the period of the lease or loan;
provided, however, that | 17 | | the rentals or loan repayments need not include costs
met | 18 | | through the use of funds other than those obtained by the | 19 | | Authority through
the issuance of its bonds or governmental | 20 | | loans; (2) a reasonable percentage
additive to be agreed upon | 21 | | by the Authority and the borrower or tenant to cover
a properly | 22 | | allocable portion of the Authority's general expenses, | 23 | | including,
but not limited to, administrative expenses, | 24 | | salaries and general insurance,
and
(3) an amount sufficient to | 25 | | pay when due all principal of, interest and
premium, if
any on, | 26 | | any bonds issued by the Authority with respect to the project. |
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| 1 | | The
portion of total rentals payable under clause (3) of this | 2 | | subsection (g) shall
be deposited in such special accounts, | 3 | | including all sinking funds, acquisition
or construction | 4 | | funds, debt service and other funds as provided by any
| 5 | | resolution, mortgage or trust agreement of the Authority | 6 | | pursuant to which any
bond is issued.
| 7 | | (h) The Authority has the power, upon the termination of | 8 | | any leasehold
period
of any project, to sell or lease for a | 9 | | further term or terms such project on
such terms and conditions | 10 | | as the Authority shall deem reasonable and consistent
with the | 11 | | purposes of the Act. The net proceeds from all such sales and | 12 | | the
revenues or income from such leases shall be used to | 13 | | satisfy any indebtedness
of
the Authority with respect to such | 14 | | project and any balance may be used to pay
any expenses of the | 15 | | Authority or be used for the further development,
construction, | 16 | | acquisition or improvement of projects.
In the event any | 17 | | project is vacated by a tenant prior to the termination of the
| 18 | | initial leasehold period, the Authority shall sell or lease the | 19 | | facilities of
the project on the most advantageous terms | 20 | | available. The net proceeds of any
such disposition shall be | 21 | | treated in the same manner as the proceeds from sales
or the | 22 | | revenues or income from leases subsequent to the termination of | 23 | | any
initial leasehold period.
| 24 | | (i) The Authority shall have the power to make loans to | 25 | | persons to finance a
project, to enter into loan agreements | 26 | | with respect thereto, and to accept
guarantees from persons of |
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| 1 | | its loans or the resultant evidences of obligations
of the | 2 | | Authority.
| 3 | | (j) The Authority may fix, determine, charge and collect | 4 | | any premiums, fees,
charges, costs and expenses, including, | 5 | | without limitation, any application
fees, commitment fees, | 6 | | program fees, financing charges or publication fees from
any | 7 | | person in connection with its activities under this Act.
| 8 | | (k) In addition to the funds established as provided | 9 | | herein, the Authority
shall have the power to create and | 10 | | establish such reserve funds and accounts as
may be necessary | 11 | | or desirable to accomplish its purposes under this Act and to
| 12 | | deposit its available monies into the funds and accounts.
| 13 | | (l) At the request of the governing body of any unit of | 14 | | local government,
the
Authority is authorized to market such | 15 | | local government's revenue bond
offerings by preparing bond | 16 | | issues for sale, advertising for sealed bids,
receiving bids
at | 17 | | its offices, making the award to the bidder that offers the | 18 | | most favorable
terms or arranging for negotiated placements or | 19 | | underwritings of such
securities. The Authority may, at its | 20 | | discretion, offer for concurrent sale the
revenue bonds of | 21 | | several local governments. Sales by the Authority of revenue
| 22 | | bonds under this Section shall in no way imply State guarantee | 23 | | of such debt
issue. The Authority may require such financial | 24 | | information from participating
local governments as it deems | 25 | | necessary in order to carry out the purposes of
this subsection | 26 | | (1).
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| 1 | | (m) The Authority may make grants to any county to which | 2 | | Division 5-37 of
the
Counties Code is applicable to assist in | 3 | | the financing of capital development,
construction and | 4 | | renovation of new or existing facilities for hospitals and
| 5 | | health care facilities under that Act. Such grants may only be | 6 | | made from funds
appropriated for such purposes from the Build | 7 | | Illinois Bond Fund.
| 8 | | (n) The Authority may establish an urban development action | 9 | | grant program
for
the purpose of assisting municipalities in | 10 | | Illinois which are experiencing
severe economic distress to | 11 | | help stimulate economic development activities
needed to aid in | 12 | | economic recovery. The Authority shall determine the types of
| 13 | | activities and projects for which the urban development action | 14 | | grants may be
used, provided that such projects and activities | 15 | | are broadly defined to include
all reasonable projects and | 16 | | activities the primary objectives of which are the
development | 17 | | of viable urban communities, including decent housing and a
| 18 | | suitable living environment, and expansion of economic | 19 | | opportunity, principally
for
persons of low and moderate | 20 | | incomes. The Authority shall enter into grant
agreements from | 21 | | monies appropriated for such purposes from the Build Illinois
| 22 | | Bond Fund. The Authority shall monitor the
use of the grants, | 23 | | and shall provide for audits of the funds as well as
recovery | 24 | | by the Authority of any funds determined to have been spent in
| 25 | | violation of this
subsection (n) or any rule or regulation | 26 | | promulgated hereunder. The Authority
shall provide technical |
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| 1 | | assistance with regard to the effective use of the
urban | 2 | | development action grants. The Authority shall file an annual | 3 | | report to
the
General Assembly concerning the progress of the | 4 | | grant program.
| 5 | | (o) The Authority may establish a Housing Partnership | 6 | | Program whereby the
Authority provides zero-interest loans to | 7 | | municipalities for the purpose of
assisting in the financing of | 8 | | projects for the rehabilitation of affordable
multi-family | 9 | | housing for low and moderate income residents. The Authority | 10 | | may
provide such loans only upon a municipality's providing | 11 | | evidence that it has
obtained private funding for the | 12 | | rehabilitation project. The Authority shall
provide 3 State | 13 | | dollars for every 7 dollars obtained by the municipality from
| 14 | | sources other than the State of Illinois. The loans shall be | 15 | | made from monies
appropriated for such purpose from the Build | 16 | | Illinois Bond Fund. The total amount of loans available under | 17 | | the Housing
Partnership Program shall not exceed $30,000,000. | 18 | | State loan monies under this
subsection shall be used only for | 19 | | the acquisition and rehabilitation of
existing
buildings | 20 | | containing 4 or more dwelling units. The terms of any loan made | 21 | | by
the municipality under this subsection shall require | 22 | | repayment of the loan to
the municipality upon any sale or | 23 | | other transfer of the project.
| 24 | | (p) The Authority may award grants to universities and | 25 | | research
institutions,
research consortiums and other | 26 | | not-for-profit entities for the purposes of:
remodeling or |
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| 1 | | otherwise physically altering existing laboratory or research
| 2 | | facilities, expansion or physical additions to existing | 3 | | laboratory or research
facilities, construction of new | 4 | | laboratory or research facilities or
acquisition of modern | 5 | | equipment to support laboratory or research operations
| 6 | | provided that
such grants (i) be used solely in support of | 7 | | project and equipment acquisitions
which enhance technology | 8 | | transfer, and (ii) not constitute more than 60 percent
of the | 9 | | total project or acquisition cost.
| 10 | | (q) Grants may be awarded by the Authority to units of | 11 | | local government for
the
purpose of developing the appropriate | 12 | | infrastructure or defraying other costs
to
the local government | 13 | | in support of laboratory or research facilities provided
that | 14 | | such grants may not exceed 40% of the cost to the unit of local
| 15 | | government.
| 16 | | (r) The Authority may establish a Direct Loan Program to | 17 | | make loans to
individuals, partnerships or corporations for the | 18 | | purpose of an industrial
project, as defined in
Section 801-10 | 19 | | of this Act. For the purposes of such program
and not by way of | 20 | | limitation on any other program of the Authority, the
Authority | 21 | | shall have the power to issue bonds, notes, or other evidences | 22 | | of
indebtedness including commercial paper for purposes of | 23 | | providing a fund of
capital from which it may make such loans. | 24 | | The Authority shall have the power
to use any appropriations | 25 | | from the State made especially for the Authority's
Direct Loan | 26 | | Program for additional capital to make such loans or for the
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| 1 | | purposes of reserve funds or pledged funds which secure the | 2 | | Authority's
obligations of repayment of any bond, note or other | 3 | | form of indebtedness
established for the purpose of providing | 4 | | capital for which it intends to make
such loans under the | 5 | | Direct Loan Program. For the purpose of obtaining such
capital, | 6 | | the Authority may also enter into agreements with financial
| 7 | | institutions and other persons for the purpose of selling loans | 8 | | and developing
a secondary market for such loans.
Loans made | 9 | | under the Direct Loan Program may be in an amount not to exceed
| 10 | | $300,000 and shall be made for a portion of an industrial | 11 | | project which does
not exceed 50% of the total project. No loan | 12 | | may be made by the Authority
unless
approved by the affirmative | 13 | | vote of at least 8 members of the board. The
Authority shall | 14 | | establish procedures and publish rules which shall provide for
| 15 | | the submission, review, and analysis of each direct loan | 16 | | application and which
shall preserve the ability of each board | 17 | | member to reach an individual business
judgment regarding the | 18 | | propriety of making each direct loan. The collective
discretion | 19 | | of the board to approve or disapprove each loan shall be
| 20 | | unencumbered.
The Authority may establish and collect such fees | 21 | | and charges, determine and
enforce such terms and conditions, | 22 | | and charge such interest rates as it
determines to be necessary | 23 | | and appropriate to the successful administration of
the Direct | 24 | | Loan Program. The Authority may require such interests in | 25 | | collateral
and such guarantees as it determines are necessary | 26 | | to project the Authority's
interest in the repayment of the |
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| 1 | | principal and interest of each loan made under
the Direct Loan | 2 | | Program.
| 3 | | (s) The Authority may guarantee private loans to third | 4 | | parties up to a
specified dollar amount in order to promote | 5 | | economic development in this State.
| 6 | | (t) The Authority may adopt rules and regulations as may be | 7 | | necessary or
advisable to implement the powers conferred by | 8 | | this Act.
| 9 | | (u) The Authority shall have the power to issue bonds, | 10 | | notes or other
evidences
of indebtedness, which may be used to | 11 | | make loans to units of local government
which are authorized to | 12 | | enter into loan agreements and other documents and to
issue | 13 | | bonds, notes and other evidences of indebtedness for the | 14 | | purpose of
financing the protection of storm sewer outfalls, | 15 | | the construction of adequate
storm sewer outfalls, and the | 16 | | provision for flood protection of sanitary sewage
treatment | 17 | | plans, in counties that have established a stormwater | 18 | | management
planning committee in accordance with
Section | 19 | | 5-1062 of the Counties Code. Any
such loan shall be made by the | 20 | | Authority pursuant to the provisions of
Section
820-5 to 820-60 | 21 | | of this Act. The unit of local government shall pay back to the
| 22 | | Authority the principal amount of the loan, plus annual | 23 | | interest as determined
by the Authority. The Authority shall | 24 | | have the power, subject to appropriations
by the General | 25 | | Assembly, to subsidize or buy down a portion of the interest on
| 26 | | such loans, up to 4% per annum.
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| 1 | | (v) The Authority may accept security interests as provided | 2 | | in
Sections 11-3
and 11-3.3 of the Illinois Public Aid Code.
| 3 | | (w) Moral Obligation. In the event that the Authority | 4 | | determines that monies
of the Authority will not be sufficient | 5 | | for the payment of the principal of and
interest on its bonds | 6 | | during the next State fiscal year, the Chairperson, as
soon as | 7 | | practicable, shall certify to the Governor the amount required | 8 | | by the
Authority to enable it to pay such principal of and | 9 | | interest on the bonds. The
Governor shall submit the amount so | 10 | | certified to the General Assembly as soon
as
practicable, but | 11 | | no later than the end of the current State fiscal year. This
| 12 | | subsection shall apply only to any bonds or notes as to which | 13 | | the Authority
shall have determined, in the resolution | 14 | | authorizing the issuance of the bonds
or notes, that this | 15 | | subsection shall apply. Whenever the Authority makes such a
| 16 | | determination, that fact shall be plainly stated on the face of | 17 | | the bonds or
notes and that fact shall also be reported to the | 18 | | Governor. In the event of a
withdrawal of moneys from a reserve | 19 | | fund established with respect to any issue
or issues of bonds | 20 | | of the Authority to pay principal or interest on those
bonds,
| 21 | | the Chairperson of the Authority, as soon as practicable, shall | 22 | | certify to the
Governor the amount required to restore the | 23 | | reserve fund to the level required
in the resolution or | 24 | | indenture securing those bonds. The Governor shall submit
the | 25 | | amount so certified to the General Assembly as soon as | 26 | | practicable, but no
later than the end of the current State |
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| 1 | | fiscal year. The Authority shall obtain
written approval from | 2 | | the Governor for any bonds and notes to be issued under
this | 3 | | Section.
In addition to any other bonds authorized to be issued | 4 | | under
Sections 825-60, 825-65(e), 830-25 and 845-5, the | 5 | | principal amount of Authority
bonds outstanding
issued under | 6 | | this
Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS | 7 | | 360/2-6(c), which have
been
assumed by the Authority, shall not | 8 | | exceed $150,000,000. This subsection (w) shall in no way be | 9 | | applied to any bonds issued by the Authority on behalf of the | 10 | | Illinois Power Agency under Section 825-90 of this Act.
| 11 | | (x) The Authority may enter into agreements or contracts | 12 | | with any person necessary or appropriate to place the payment | 13 | | obligations of the Authority under any of its bonds in whole or | 14 | | in part on any interest rate basis, cash flow basis, or other | 15 | | basis desired by the Authority, including without limitation | 16 | | agreements or contracts commonly known as "interest rate swap | 17 | | agreements", "forward payment conversion agreements", and | 18 | | "futures", or agreements or contracts to exchange cash flows or | 19 | | a series of payments, or agreements or contracts, including | 20 | | without limitation agreements or contracts commonly known as | 21 | | "options", "puts", or "calls", to hedge payment, rate spread, | 22 | | or similar exposure; provided that any such agreement or | 23 | | contract shall not constitute an obligation for borrowed money | 24 | | and shall not be taken into account under Section 845-5 of this | 25 | | Act or any other debt limit of the Authority or the State of | 26 | | Illinois.
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| 1 | | (y) The Authority shall publish summaries of projects and | 2 | | actions approved by the members of the Authority on its | 3 | | website. These summaries shall include, but not be limited to, | 4 | | information regarding the: | 5 | | (1) project; | 6 | | (2) Board's action or actions; | 7 | | (3) purpose of the project; | 8 | | (4) Authority's program and contribution; | 9 | | (5) volume cap; | 10 | | (6) jobs retained; | 11 | | (7) projected new jobs; | 12 | | (8) construction jobs created; | 13 | | (9) estimated sources and uses of funds; | 14 | | (10) financing summary; | 15 | | (11) project summary; | 16 | | (12) business summary; | 17 | | (13) ownership or economic disclosure statement; | 18 | | (14) professional and financial information; | 19 | | (15) service area; and | 20 | | (16) legislative district. | 21 | | The disclosure of information pursuant to this subsection | 22 | | shall comply with the Freedom of Information Act. | 23 | | (Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07; | 24 | | 95-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of | 25 | | P.A. 96-793 for the effective date of changes made by P.A. | 26 | | 96-795) .)
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| 1 | | Section 15. The State Finance Act is amended by adding | 2 | | Section 5.886 as follows: | 3 | | (30 ILCS 105/5.886 new) | 4 | | Sec. 5.886. The State Pension Obligation Acceleration Bond | 5 | | Fund. | 6 | | Section 20. The General Obligation Bond Act is amended by | 7 | | changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding | 8 | | Section 7.7 as follows: | 9 | | (30 ILCS 330/2) (from Ch. 127, par. 652) | 10 | | Sec. 2. Authorization for Bonds. The State of Illinois is | 11 | | authorized to
issue, sell and provide for the retirement of | 12 | | General Obligation Bonds of
the State of Illinois for the | 13 | | categories and specific purposes expressed in
Sections 2 | 14 | | through 8 of this Act, in the total amount of $56,167,925,743 | 15 | | $55,917,925,743 . | 16 | | The bonds authorized in this Section 2 and in Section 16 of | 17 | | this Act are
herein called "Bonds". | 18 | | Of the total amount of Bonds authorized in this Act, up to | 19 | | $2,200,000,000
in aggregate original principal amount may be | 20 | | issued and sold in accordance
with the Baccalaureate Savings | 21 | | Act in the form of General Obligation
College Savings Bonds. | 22 | | Of the total amount of Bonds authorized in this Act, up to |
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| 1 | | $300,000,000 in
aggregate original principal amount may be | 2 | | issued and sold in accordance
with the Retirement Savings Act | 3 | | in the form of General Obligation
Retirement Savings Bonds. | 4 | | Of the total amount of Bonds authorized in this Act, the | 5 | | additional
$10,000,000,000 authorized by Public Act 93-2, the | 6 | | $3,466,000,000 authorized by Public Act 96-43, and the | 7 | | $4,096,348,300 authorized by Public Act 96-1497 shall be used | 8 | | solely as provided in Section 7.2. | 9 | | Of the total amount of Bonds authorized in this Act, the | 10 | | additional $6,000,000,000 authorized by this amendatory Act of | 11 | | the 100th General Assembly shall be used solely as provided in | 12 | | Section 7.6 and shall be issued by December 31, 2017. | 13 | | Of the total amount of Bonds authorized in this Act, the | 14 | | additional $250,000,000 authorized by this amendatory Act of | 15 | | the 100th General Assembly shall be used solely as provided in | 16 | | Section 7.7. | 17 | | The issuance and sale of Bonds pursuant to the General | 18 | | Obligation Bond
Act is an economical and efficient method of | 19 | | financing the long-term capital needs of
the State. This Act | 20 | | will permit the issuance of a multi-purpose General
Obligation | 21 | | Bond with uniform terms and features. This will not only lower
| 22 | | the cost of registration but also reduce the overall cost of | 23 | | issuing debt
by improving the marketability of Illinois General | 24 | | Obligation Bonds. | 25 | | (Source: P.A. 100-23, eff. 7-6-17.) |
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| 1 | | (30 ILCS 330/2.5) | 2 | | Sec. 2.5. Limitation on issuance of Bonds. | 3 | | (a) Except as provided in subsection (b), no Bonds may be | 4 | | issued if, after the issuance, in the next State fiscal year | 5 | | after the issuance of the Bonds, the amount of debt service | 6 | | (including principal, whether payable at maturity or pursuant | 7 | | to mandatory sinking fund installments, and interest) on all | 8 | | then-outstanding Bonds, other than (i) Bonds authorized by | 9 | | Public Act 100-23 this amendatory Act of the 100th General | 10 | | Assembly , (ii) Bonds authorized by this amendatory Act of the | 11 | | 100th General Assembly, (iii) (ii) Bonds issued by Public Act | 12 | | 96-43, and (iv) (iii) Bonds authorized by Public Act 96-1497, | 13 | | would exceed 7% of the aggregate appropriations from the | 14 | | general funds (which consist of the General Revenue Fund, the | 15 | | Common School Fund, the General Revenue Common School Special | 16 | | Account Fund, and the Education Assistance Fund) and the Road | 17 | | Fund for the fiscal year immediately prior to the fiscal year | 18 | | of the issuance. | 19 | | (b) If the Comptroller and Treasurer each consent in | 20 | | writing, Bonds may be issued even if the issuance does not | 21 | | comply with subsection (a). In addition, $2,000,000,000 in | 22 | | Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7, | 23 | | and $2,000,000,000 in Refunding Bonds under Section 16, may be | 24 | | issued during State fiscal year 2017 without complying with | 25 | | subsection (a). In addition, $2,000,000,000 in Bonds for the | 26 | | purposes set forth in Sections 3, 4, 5, 6, and 7, and |
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| 1 | | $2,000,000,000 in Refunding Bonds under Section 16, may be | 2 | | issued during State fiscal year 2018 without complying with | 3 | | subsection (a).
| 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 330/7.7 new) | 8 | | Sec. 7.7. State Pension Obligation Acceleration Bonds. | 9 | | (a) As used in this Act, "State Pension Obligation | 10 | | Acceleration Bonds" means Bonds authorized by this amendatory | 11 | | Act of the 100th General Assembly and used for the purposes set | 12 | | forth in subsection (c-5) of Section 801-40 of the Illinois | 13 | | Finance Authority Act. | 14 | | (b) State Pension Obligation Acceleration Bonds in the | 15 | | amount of $250,000,000 are hereby authorized to be used for the | 16 | | purposes set forth in subsection (c-5) of Section 801-40 of the | 17 | | Illinois Finance Authority Act. | 18 | | (c) The proceeds of State Pension Obligation Acceleration | 19 | | Bonds authorized in subsection (b) of this Section, less the | 20 | | amounts authorized in the Bond Sale Order to be directly paid | 21 | | out for bond sale expenses under Section 8, shall be deposited | 22 | | directly into the State Pension Obligation Acceleration Bond | 23 | | Fund, and the Comptroller and the Treasurer shall, as soon as | 24 | | practical, make payments as contemplated by subsection (c-5) of | 25 | | Section 801-40 of the Illinois Finance Authority Act. |
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| 1 | | (d) There is created the State Pension Obligation | 2 | | Acceleration Bond Fund as a special fund in the State Treasury. | 3 | | Funds deposited in the State Pension Obligation Acceleration | 4 | | Bond Fund may only be used for the purposes set forth in | 5 | | subsection (c-5) of Section 801-40 of the Illinois Finance | 6 | | Authority Act or for the payment of principal and interest due | 7 | | on State Pension Obligation Acceleration Bonds.
| 8 | | (30 ILCS 330/9) (from Ch. 127, par. 659)
| 9 | | Sec. 9. Conditions for issuance and sale of Bonds; | 10 | | requirements Issuance and Sale of Bonds - Requirements for
| 11 | | Bonds. | 12 | | (a) Except as otherwise provided in this subsection , and | 13 | | subsection (h) , and subsection (i) , Bonds shall be issued and | 14 | | sold from time to time, in one or
more series, in such amounts | 15 | | and at such prices as may be directed by the
Governor, upon | 16 | | recommendation by the Director of the
Governor's Office of | 17 | | Management and Budget.
Bonds shall be in such form (either | 18 | | coupon, registered or book entry), in
such denominations, | 19 | | payable within 25 years from their date, subject to such
terms | 20 | | of redemption with or without premium, bear interest payable at
| 21 | | such times and at such fixed or variable rate or rates, and be | 22 | | dated
as shall be fixed and determined by the Director of
the
| 23 | | Governor's Office of Management and Budget
in the order | 24 | | authorizing the issuance and sale
of any series of Bonds, which | 25 | | order shall be approved by the Governor
and is herein called a |
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| 1 | | "Bond Sale Order"; provided however, that interest
payable at | 2 | | fixed or variable rates shall not exceed that permitted in the
| 3 | | Bond Authorization Act, as now or hereafter amended. Bonds | 4 | | shall be
payable at such place or places, within or without the | 5 | | State of Illinois, and
may be made registrable as to either | 6 | | principal or as to both principal and
interest, as shall be | 7 | | specified in the Bond Sale Order. Bonds may be callable
or | 8 | | subject to purchase and retirement or tender and remarketing as | 9 | | fixed
and determined in the Bond Sale Order. Bonds, other than | 10 | | Bonds issued under Section 3 of this Act for the costs | 11 | | associated with the purchase and implementation of information | 12 | | technology, (i) except for refunding Bonds satisfying the | 13 | | requirements of Section 16 of this Act and sold during fiscal | 14 | | year 2009, 2010, 2011, 2017, or 2018 must be issued with | 15 | | principal or mandatory redemption amounts in equal amounts, | 16 | | with the first maturity issued occurring within the fiscal year | 17 | | in which the Bonds are issued or within the next succeeding | 18 | | fiscal year and (ii) must mature or be subject to mandatory | 19 | | redemption each fiscal year thereafter up to 25 years, except | 20 | | for refunding Bonds satisfying the requirements of Section 16 | 21 | | of this Act and sold during fiscal year 2009, 2010, or 2011 | 22 | | which must mature or be subject to mandatory redemption each | 23 | | fiscal year thereafter up to 16 years. Bonds issued under | 24 | | Section 3 of this Act for the costs associated with the | 25 | | purchase and implementation of information technology must be | 26 | | issued with principal or mandatory redemption amounts in equal |
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| 1 | | amounts, with the first maturity issued occurring with the | 2 | | fiscal year in which the respective bonds are issued or with | 3 | | the next succeeding fiscal year, with the respective bonds | 4 | | issued maturing or subject to mandatory redemption each fiscal | 5 | | year thereafter up to 10 years. Notwithstanding any provision | 6 | | of this Act to the contrary, the Bonds authorized by Public Act | 7 | | 96-43 shall be payable within 5 years from their date and must | 8 | | be issued with principal or mandatory redemption amounts in | 9 | | equal amounts, with payment of principal or mandatory | 10 | | redemption beginning in the first fiscal year following the | 11 | | fiscal year in which the Bonds are issued.
| 12 | | Notwithstanding any provision of this Act to the contrary, | 13 | | the Bonds authorized by Public Act 96-1497 shall be payable | 14 | | within 8 years from their date and shall be issued with payment | 15 | | of maturing principal or scheduled mandatory redemptions in | 16 | | accordance with the following schedule, except the following | 17 | | amounts shall be prorated if less than the total additional | 18 | | amount of Bonds authorized by Public Act 96-1497 are issued: | 19 | | Fiscal Year After Issuance Amount | 20 | | 1-2 $0 | 21 | | 3 $110,712,120 | 22 | | 4 $332,136,360 | 23 | | 5 $664,272,720 | 24 | | 6-8 $996,409,080 | 25 | | Notwithstanding any provision of this Act to the contrary, | 26 | | Income Tax Proceed Bonds issued under Section 7.6 shall be |
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| 1 | | payable 12 years from the date of sale and shall be issued with | 2 | | payment of principal or mandatory redemption. | 3 | | In the case of any series of Bonds bearing interest at a | 4 | | variable interest
rate ("Variable Rate Bonds"), in lieu of | 5 | | determining the rate or rates at which
such series of Variable | 6 | | Rate Bonds shall bear interest and the price or prices
at which | 7 | | such Variable Rate Bonds shall be initially sold or remarketed | 8 | | (in the
event of purchase and subsequent resale), the Bond Sale | 9 | | Order may provide that
such interest rates and prices may vary | 10 | | from time to time depending on criteria
established in such | 11 | | Bond Sale Order, which criteria may include, without
| 12 | | limitation, references to indices or variations in interest | 13 | | rates as may, in
the judgment of a remarketing agent, be | 14 | | necessary to cause Variable Rate Bonds
of such series to be | 15 | | remarketable from time to time at a price equal to their
| 16 | | principal amount, and may provide for appointment of a bank, | 17 | | trust company,
investment bank, or other financial institution | 18 | | to serve as remarketing agent
in that connection.
The Bond Sale | 19 | | Order may provide that alternative interest rates or provisions
| 20 | | for establishing alternative interest rates, different | 21 | | security or claim
priorities, or different call or amortization | 22 | | provisions will apply during
such times as Variable Rate Bonds | 23 | | of any series are held by a person providing
credit or | 24 | | liquidity enhancement arrangements for such Bonds as | 25 | | authorized in
subsection (b) of this Section.
The Bond Sale | 26 | | Order may also provide for such variable interest rates to be
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| 1 | | established pursuant to a process generally known as an auction | 2 | | rate process
and may provide for appointment of one or more | 3 | | financial institutions to serve
as auction agents and | 4 | | broker-dealers in connection with the establishment of
such | 5 | | interest rates and the sale and remarketing of such Bonds.
| 6 | | (b) In connection with the issuance of any series of Bonds, | 7 | | the State may
enter into arrangements to provide additional | 8 | | security and liquidity for such
Bonds, including, without | 9 | | limitation, bond or interest rate insurance or
letters of | 10 | | credit, lines of credit, bond purchase contracts, or other
| 11 | | arrangements whereby funds are made available to retire or | 12 | | purchase Bonds,
thereby assuring the ability of owners of the | 13 | | Bonds to sell or redeem their
Bonds. The State may enter into | 14 | | contracts and may agree to pay fees to persons
providing such | 15 | | arrangements, but only under circumstances where the Director | 16 | | of
the
Governor's Office of Management and Budget certifies | 17 | | that he or she reasonably expects the total
interest paid or to | 18 | | be paid on the Bonds, together with the fees for the
| 19 | | arrangements (being treated as if interest), would not, taken | 20 | | together, cause
the Bonds to bear interest, calculated to their | 21 | | stated maturity, at a rate in
excess of the rate that the Bonds | 22 | | would bear in the absence of such
arrangements.
| 23 | | The State may, with respect to Bonds issued or anticipated | 24 | | to be issued,
participate in and enter into arrangements with | 25 | | respect to interest rate
protection or exchange agreements, | 26 | | guarantees, or financial futures contracts
for the purpose of |
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| 1 | | limiting, reducing, or managing interest rate exposure.
The | 2 | | authority granted under this paragraph, however, shall not | 3 | | increase the principal amount of Bonds authorized to be issued | 4 | | by law. The arrangements may be executed and delivered by the | 5 | | Director
of the
Governor's Office of Management and Budget on | 6 | | behalf of the State. Net payments for such
arrangements shall | 7 | | constitute interest on the Bonds and shall be paid from the
| 8 | | General Obligation Bond Retirement and Interest Fund. The | 9 | | Director of the
Governor's Office of Management and Budget | 10 | | shall at least annually certify to the Governor and
the
State | 11 | | Comptroller his or her estimate of the amounts of such net | 12 | | payments to
be included in the calculation of interest required | 13 | | to be paid by the State.
| 14 | | (c) Prior to the issuance of any Variable Rate Bonds | 15 | | pursuant to
subsection (a), the Director of the
Governor's | 16 | | Office of Management and Budget shall adopt an
interest rate | 17 | | risk management policy providing that the amount of the State's
| 18 | | variable rate exposure with respect to Bonds shall not exceed | 19 | | 20%. This policy
shall remain in effect while any Bonds are | 20 | | outstanding and the issuance of
Bonds
shall be subject to the | 21 | | terms of such policy. The terms of this policy may be
amended | 22 | | from time to time by the Director of the
Governor's Office of | 23 | | Management and Budget but in no
event shall any amendment cause | 24 | | the permitted level of the State's variable
rate exposure with | 25 | | respect to Bonds to exceed 20%.
| 26 | | (d) "Build America Bonds" in this Section means Bonds |
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| 1 | | authorized by Section 54AA of the Internal Revenue Code of | 2 | | 1986, as amended ("Internal Revenue Code"), and bonds issued | 3 | | from time to time to refund or continue to refund "Build | 4 | | America Bonds". | 5 | | (e) Notwithstanding any other provision of this Section, | 6 | | Qualified School Construction Bonds shall be issued and sold | 7 | | from time to time, in one or more series, in such amounts and | 8 | | at such prices as may be directed by the Governor, upon | 9 | | recommendation by the Director of the Governor's Office of | 10 | | Management and Budget. Qualified School Construction Bonds | 11 | | shall be in such form (either coupon, registered or book | 12 | | entry), in such denominations, payable within 25 years from | 13 | | their date, subject to such terms of redemption with or without | 14 | | premium, and if the Qualified School Construction Bonds are | 15 | | issued with a supplemental coupon, bear interest payable at | 16 | | such times and at such fixed or variable rate or rates, and be | 17 | | dated as shall be fixed and determined by the Director of the | 18 | | Governor's Office of Management and Budget in the order | 19 | | authorizing the issuance and sale of any series of Qualified | 20 | | School Construction Bonds, which order shall be approved by the | 21 | | Governor and is herein called a "Bond Sale Order"; except that | 22 | | interest payable at fixed or variable rates, if any, shall not | 23 | | exceed that permitted in the Bond Authorization Act, as now or | 24 | | hereafter amended. Qualified School Construction Bonds shall | 25 | | be payable at such place or places, within or without the State | 26 | | of Illinois, and may be made registrable as to either principal |
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| 1 | | or as to both principal and interest, as shall be specified in | 2 | | the Bond Sale Order. Qualified School Construction Bonds may be | 3 | | callable or subject to purchase and retirement or tender and | 4 | | remarketing as fixed and determined in the Bond Sale Order. | 5 | | Qualified School Construction Bonds must be issued with | 6 | | principal or mandatory redemption amounts or sinking fund | 7 | | payments into the General Obligation Bond Retirement and | 8 | | Interest Fund (or subaccount therefor) in equal amounts, with | 9 | | the first maturity issued, mandatory redemption payment or | 10 | | sinking fund payment occurring within the fiscal year in which | 11 | | the Qualified School Construction Bonds are issued or within | 12 | | the next succeeding fiscal year, with Qualified School | 13 | | Construction Bonds issued maturing or subject to mandatory | 14 | | redemption or with sinking fund payments thereof deposited each | 15 | | fiscal year thereafter up to 25 years. Sinking fund payments | 16 | | set forth in this subsection shall be permitted only to the | 17 | | extent authorized in Section 54F of the Internal Revenue Code | 18 | | or as otherwise determined by the Director of the Governor's | 19 | | Office of Management and Budget. "Qualified School | 20 | | Construction Bonds" in this subsection means Bonds authorized | 21 | | by Section 54F of the Internal Revenue Code and for bonds | 22 | | issued from time to time to refund or continue to refund such | 23 | | "Qualified School Construction Bonds". | 24 | | (f) Beginning with the next issuance by the Governor's | 25 | | Office of Management and Budget to the Procurement Policy Board | 26 | | of a request for quotation for the purpose of formulating a new |
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| 1 | | pool of qualified underwriting banks list, all entities | 2 | | responding to such a request for quotation for inclusion on | 3 | | that list shall provide a written report to the Governor's | 4 | | Office of Management and Budget and the Illinois Comptroller. | 5 | | The written report submitted to the Comptroller shall (i) be | 6 | | published on the Comptroller's Internet website and (ii) be | 7 | | used by the Governor's Office of Management and Budget for the | 8 | | purposes of scoring such a request for quotation. The written | 9 | | report, at a minimum, shall: | 10 | | (1) disclose whether, within the past 3 months, | 11 | | pursuant to its credit default swap market-making | 12 | | activities, the firm has entered into any State of Illinois | 13 | | credit default swaps ("CDS"); | 14 | | (2) include, in the event of State of Illinois CDS | 15 | | activity, disclosure of the firm's cumulative notional | 16 | | volume of State of Illinois CDS trades and the firm's | 17 | | outstanding gross and net notional amount of State of | 18 | | Illinois CDS, as of the end of the current 3-month period; | 19 | | (3) indicate, pursuant to the firm's proprietary | 20 | | trading activities, disclosure of whether the firm, within | 21 | | the past 3 months, has entered into any proprietary trades | 22 | | for its own account in State of Illinois CDS; | 23 | | (4) include, in the event of State of Illinois | 24 | | proprietary trades, disclosure of the firm's outstanding | 25 | | gross and net notional amount of proprietary State of | 26 | | Illinois CDS and whether the net position is short or long |
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| 1 | | credit protection, as of the end of the current 3-month | 2 | | period; | 3 | | (5) list all time periods during the past 3 months | 4 | | during which the firm held net long or net short State of | 5 | | Illinois CDS proprietary credit protection positions, the | 6 | | amount of such positions, and whether those positions were | 7 | | net long or net short credit protection positions; and | 8 | | (6) indicate whether, within the previous 3 months, the | 9 | | firm released any publicly available research or marketing | 10 | | reports that reference State of Illinois CDS and include | 11 | | those research or marketing reports as attachments. | 12 | | (g) All entities included on a Governor's Office of | 13 | | Management and Budget's pool of qualified underwriting banks | 14 | | list shall, as soon as possible after March 18, 2011 (the | 15 | | effective date of Public Act 96-1554), but not later than | 16 | | January 21, 2011, and on a quarterly fiscal basis thereafter, | 17 | | provide a written report to the Governor's Office of Management | 18 | | and Budget and the Illinois Comptroller. The written reports | 19 | | submitted to the Comptroller shall be published on the | 20 | | Comptroller's Internet website. The written reports, at a | 21 | | minimum, shall: | 22 | | (1) disclose whether, within the past 3 months, | 23 | | pursuant to its credit default swap market-making | 24 | | activities, the firm has entered into any State of Illinois | 25 | | credit default swaps ("CDS"); | 26 | | (2) include, in the event of State of Illinois CDS |
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| 1 | | activity, disclosure of the firm's cumulative notional | 2 | | volume of State of Illinois CDS trades and the firm's | 3 | | outstanding gross and net notional amount of State of | 4 | | Illinois CDS, as of the end of the current 3-month period; | 5 | | (3) indicate, pursuant to the firm's proprietary | 6 | | trading activities, disclosure of whether the firm, within | 7 | | the past 3 months, has entered into any proprietary trades | 8 | | for its own account in State of Illinois CDS; | 9 | | (4) include, in the event of State of Illinois | 10 | | proprietary trades, disclosure of the firm's outstanding | 11 | | gross and net notional amount of proprietary State of | 12 | | Illinois CDS and whether the net position is short or long | 13 | | credit protection, as of the end of the current 3-month | 14 | | period; | 15 | | (5) list all time periods during the past 3 months | 16 | | during which the firm held net long or net short State of | 17 | | Illinois CDS proprietary credit protection positions, the | 18 | | amount of such positions, and whether those positions were | 19 | | net long or net short credit protection positions; and | 20 | | (6) indicate whether, within the previous 3 months, the | 21 | | firm released any publicly available research or marketing | 22 | | reports that reference State of Illinois CDS and include | 23 | | those research or marketing reports as attachments. | 24 | | (h) Notwithstanding any other provision of this Section, | 25 | | for purposes of maximizing market efficiencies and cost | 26 | | savings, Income Tax Proceed Bonds may be issued and sold from |
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| 1 | | time to time, in one or more series, in such amounts and at | 2 | | such prices as may be directed by the Governor, upon | 3 | | recommendation by the Director of the Governor's Office of | 4 | | Management and Budget. Income Tax Proceed Bonds shall be in | 5 | | such form, either coupon, registered, or book entry, in such | 6 | | denominations, shall bear interest payable at such times and at | 7 | | such fixed or variable rate or rates, and be dated as shall be | 8 | | fixed and determined by the Director of the Governor's Office | 9 | | of Management and Budget in the order authorizing the issuance | 10 | | and sale of any series of Income Tax Proceed Bonds, which order | 11 | | shall be approved by the Governor and is herein called a "Bond | 12 | | Sale Order"; provided, however, that interest payable at fixed | 13 | | or variable rates shall not exceed that permitted in the Bond | 14 | | Authorization Act. Income Tax Proceed Bonds shall be payable at | 15 | | such place or places, within or without the State of Illinois, | 16 | | and may be made registrable as to either principal or as to | 17 | | both principal and interest, as shall be specified in the Bond | 18 | | Sale Order.
Income Tax Proceed Bonds may be callable or subject | 19 | | to purchase and retirement or tender and remarketing as fixed | 20 | | and determined in the Bond Sale Order. | 21 | | (i) Notwithstanding any other provision of this Section, | 22 | | for purposes of maximizing market efficiencies and cost | 23 | | savings, State Pension Obligation Acceleration Bonds may be | 24 | | issued and sold from time to time, in one or more series, in | 25 | | such amounts and at such prices as may be directed by the | 26 | | Governor, upon recommendation by the Director of the Governor's |
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| 1 | | Office of Management and Budget. State Pension Obligation | 2 | | Acceleration Bonds shall be in such form, either coupon, | 3 | | registered, or book entry, in such denominations, shall bear | 4 | | interest payable at such times and at such fixed or variable | 5 | | rate or rates, and be dated as shall be fixed and determined by | 6 | | the Director of the Governor's Office of Management and Budget | 7 | | in the order authorizing the issuance and sale of any series of | 8 | | State Pension Obligation Acceleration Bonds, which order shall | 9 | | be approved by the Governor and is herein called a "Bond Sale | 10 | | Order"; provided, however, that interest payable at fixed or | 11 | | variable rates shall not exceed that permitted in the Bond | 12 | | Authorization Act. State Pension Obligation Acceleration Bonds | 13 | | shall be payable at such place or places, within or without the | 14 | | State of Illinois, and may be made registrable as to either | 15 | | principal or as to both principal and interest, as shall be | 16 | | specified in the Bond Sale Order.
State Pension Obligation | 17 | | Acceleration Bonds may be callable or subject to purchase and | 18 | | retirement or tender and remarketing as fixed and determined in | 19 | | the Bond Sale Order. | 20 | | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | 21 | | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | 22 | | 7-6-17; revised 8-8-17.)
| 23 | | (30 ILCS 330/11) (from Ch. 127, par. 661)
| 24 | | Sec. 11. Sale of Bonds. Except as otherwise provided in | 25 | | this Section,
Bonds shall be sold from time to time pursuant to
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| 1 | | notice of sale and public bid or by negotiated sale
in such | 2 | | amounts and at such
times as is directed by the Governor, upon | 3 | | recommendation by the Director of
the
Governor's Office of | 4 | | Management and Budget. At least 25%, based on total principal | 5 | | amount, of all Bonds issued each fiscal year shall be sold | 6 | | pursuant to notice of sale and public bid. At all times during | 7 | | each fiscal year, no more than 75%, based on total principal | 8 | | amount, of the Bonds issued each fiscal year, shall have been | 9 | | sold by negotiated sale. Failure to satisfy the requirements in | 10 | | the preceding 2 sentences shall not affect the validity of any | 11 | | previously issued Bonds; provided that all Bonds authorized by | 12 | | Public Act 96-43 and Public Act 96-1497 shall not be included | 13 | | in determining compliance for any fiscal year with the | 14 | | requirements of the preceding 2 sentences; and further provided | 15 | | that refunding Bonds satisfying the requirements of Section 16 | 16 | | of this Act and sold during fiscal year 2009, 2010, 2011, 2017, | 17 | | or 2018 shall not be subject to the requirements in the | 18 | | preceding 2 sentences.
| 19 | | If
any Bonds, including refunding Bonds, are to be sold by | 20 | | negotiated
sale, the
Director of the
Governor's Office of | 21 | | Management and Budget
shall comply with the
competitive request | 22 | | for proposal process set forth in the Illinois
Procurement Code | 23 | | and all other applicable requirements of that Code.
| 24 | | If Bonds are to be sold pursuant to notice of sale and | 25 | | public bid, the
Director of the
Governor's Office of Management | 26 | | and Budget may, from time to time, as Bonds are to be sold, |
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| 1 | | advertise
the sale of the Bonds in at least 2 daily newspapers, | 2 | | one of which is
published in the City of Springfield and one in | 3 | | the City of Chicago. The sale
of the Bonds shall also be
| 4 | | advertised in the volume of the Illinois Procurement Bulletin | 5 | | that is
published by the Department of Central Management | 6 | | Services, and shall be published once at least
10 days prior to | 7 | | the date fixed
for the opening of the bids. The Director of the
| 8 | | Governor's Office of Management and Budget may
reschedule the | 9 | | date of sale upon the giving of such additional notice as the
| 10 | | Director deems adequate to inform prospective bidders of
such | 11 | | change; provided, however, that all other conditions of the | 12 | | sale shall
continue as originally advertised.
| 13 | | Executed Bonds shall, upon payment therefor, be delivered | 14 | | to the purchaser,
and the proceeds of Bonds shall be paid into | 15 | | the State Treasury as directed by
Section 12 of this Act.
| 16 | | All Income Tax Proceed Bonds shall comply with this | 17 | | Section. Notwithstanding anything to the contrary, however, | 18 | | for purposes of complying with this Section, Income Tax Proceed | 19 | | Bonds, regardless of the number of series or issuances sold | 20 | | thereunder, shall be
considered a single issue or series. | 21 | | Furthermore, for purposes of complying with the competitive | 22 | | bidding requirements of this Section, the words "at all times" | 23 | | shall not apply to any such sale of the Income Tax Proceed | 24 | | Bonds. The Director of the Governor's Office of Management and | 25 | | Budget shall determine the time and manner of any competitive | 26 | | sale of the Income Tax Proceed Bonds; however, that sale shall |
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| 1 | | under no circumstances take place later than 60 days after the | 2 | | State closes the sale of 75% of the Income Tax Proceed Bonds by | 3 | | negotiated sale. | 4 | | All State Pension Obligation Acceleration Bonds shall | 5 | | comply with this Section. Notwithstanding anything to the | 6 | | contrary, however, for purposes of complying with this Section, | 7 | | State Pension Obligation Acceleration Bonds, regardless of the | 8 | | number of series or issuances sold thereunder, shall be
| 9 | | considered a single issue or series. Furthermore, for purposes | 10 | | of complying with the competitive bidding requirements of this | 11 | | Section, the words "at all times" shall not apply to any such | 12 | | sale of the State Pension Obligation Acceleration Bonds. The | 13 | | Director of the Governor's Office of Management and Budget | 14 | | shall determine the time and manner of any competitive sale of | 15 | | the State Pension Obligation Acceleration Bonds; however, that | 16 | | sale shall under no circumstances take place later than 60 days | 17 | | after the State closes the sale of 75% of the State Pension | 18 | | Obligation Acceleration Bonds by negotiated sale. | 19 | | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | 20 | | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | 21 | | 7-6-17; revised 8-15-17.)
| 22 | | (30 ILCS 330/12) (from Ch. 127, par. 662)
| 23 | | Sec. 12. Allocation of proceeds from sale of Bonds.
| 24 | | (a) Proceeds from the sale of Bonds, authorized by Section | 25 | | 3 of this Act,
shall be deposited in the separate fund known as |
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| 1 | | the Capital Development Fund.
| 2 | | (b) Proceeds from the sale of Bonds, authorized by | 3 | | paragraph (a) of Section
4 of this Act, shall be deposited in | 4 | | the separate fund known as the
Transportation Bond, Series A | 5 | | Fund.
| 6 | | (c) Proceeds from the sale of Bonds, authorized by | 7 | | paragraphs (b) and (c)
of Section 4 of this Act, shall be | 8 | | deposited in the separate fund known
as the Transportation | 9 | | Bond, Series B Fund.
| 10 | | (c-1) Proceeds from the sale of Bonds, authorized by | 11 | | paragraph (d) of Section 4 of this Act, shall be deposited into | 12 | | the Transportation Bond Series D Fund, which is hereby created. | 13 | | (d) Proceeds from the sale of Bonds, authorized by Section | 14 | | 5 of this
Act, shall be deposited in the separate fund known as | 15 | | the School Construction
Fund.
| 16 | | (e) Proceeds from the sale of Bonds, authorized by Section | 17 | | 6 of this Act,
shall be deposited in the separate fund known as | 18 | | the Anti-Pollution Fund.
| 19 | | (f) Proceeds from the sale of Bonds, authorized by Section | 20 | | 7 of this Act,
shall be deposited in the separate fund known as | 21 | | the Coal Development Fund.
| 22 | | (f-2) Proceeds from the sale of Bonds, authorized by | 23 | | Section 7.2 of this
Act, shall be deposited as set forth in | 24 | | Section 7.2.
| 25 | | (f-5) Proceeds from the sale of Bonds, authorized by | 26 | | Section 7.5 of this
Act, shall be deposited as set forth in |
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| 1 | | Section 7.5.
| 2 | | (f-7) Proceeds from the sale of Bonds, authorized by | 3 | | Section 7.6 of this Act, shall be deposited as set forth in | 4 | | Section 7.6. | 5 | | (f-10) Proceeds from the sale of Bonds, authorized by | 6 | | Section 7.7 of this Act, shall be deposited as set forth in | 7 | | Section 7.7. | 8 | | (g) Proceeds from the sale of Bonds, authorized by Section | 9 | | 8 of this Act,
shall be deposited in
the Capital Development | 10 | | Fund.
| 11 | | (h) Subsequent to the issuance of any Bonds for the | 12 | | purposes described
in Sections 2 through 8 of this Act, the | 13 | | Governor and the Director of the
Governor's Office of | 14 | | Management and Budget may provide for the reallocation of | 15 | | unspent proceeds
of such Bonds to any other purposes authorized | 16 | | under said Sections of this
Act, subject to the limitations on | 17 | | aggregate principal amounts contained
therein. Upon any such | 18 | | reallocation, such unspent proceeds shall be
transferred to the | 19 | | appropriate funds as determined by reference to
paragraphs (a) | 20 | | through (g) of this Section.
| 21 | | (Source: P.A. 100-23, eff. 7-6-17.)
| 22 | | (30 ILCS 330/13) (from Ch. 127, par. 663)
| 23 | | Sec. 13. Appropriation of proceeds from sale of Bonds.
| 24 | | (a) At all times, the proceeds from the sale of Bonds | 25 | | issued pursuant
to this Act are subject to appropriation by the |
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| 1 | | General Assembly and,
except as provided in Sections 7.2 , and | 2 | | 7.6 , and 7.7 , may be obligated or expended only
with the | 3 | | written approval of the Governor, in such amounts, at such | 4 | | times,
and for such purposes as the respective
State agencies, | 5 | | as defined in Section 1-7 of the Illinois State Auditing
Act, | 6 | | as amended, deem necessary or desirable for the specific | 7 | | purposes
contemplated in Sections 2 through 8 of this Act. | 8 | | Notwithstanding any other provision of this Act, proceeds from | 9 | | the sale of Bonds issued pursuant to this Act appropriated by | 10 | | the General Assembly to the Architect of the Capitol may be | 11 | | obligated or expended by the Architect of the Capitol without | 12 | | the written approval of the Governor.
| 13 | | (b) Proceeds from the sale of Bonds for the purpose of | 14 | | development of
coal and alternative forms of energy shall be | 15 | | expended in such amounts and
at such times as the Department of | 16 | | Commerce and Economic Opportunity, with the
advice and | 17 | | recommendation of the Illinois Coal Development Board for coal
| 18 | | development projects, may deem necessary and desirable for the | 19 | | specific
purpose contemplated by Section 7 of this Act. In | 20 | | considering the approval
of projects to be funded, the | 21 | | Department of Commerce and
Economic Opportunity shall give
| 22 | | special
consideration to projects designed to remove sulfur and | 23 | | other pollutants in
the preparation and utilization of coal, | 24 | | and in the use and operation of
electric utility generating | 25 | | plants and industrial facilities which utilize
Illinois coal as | 26 | | their primary source of fuel.
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| 1 | | (c) Except as directed in subsection (c-1) or (c-2), any | 2 | | monies received by any officer or employee of the state
| 3 | | representing a reimbursement of expenditures previously paid | 4 | | from general
obligation bond proceeds shall be deposited into | 5 | | the General Obligation
Bond Retirement and Interest Fund | 6 | | authorized in Section 14 of this Act.
| 7 | | (c-1) Any money received by the Department of | 8 | | Transportation as reimbursement for expenditures for high | 9 | | speed rail purposes pursuant to appropriations from the | 10 | | Transportation Bond, Series B Fund for (i) CREATE (Chicago | 11 | | Region Environmental and Transportation Efficiency), (ii) High | 12 | | Speed Rail, or (iii) AMTRAK projects authorized by the federal | 13 | | government under the provisions of the American Recovery and | 14 | | Reinvestment Act of 2009 or the Safe Accountable Flexible | 15 | | Efficient Transportation Equity Act-A Legacy for Users | 16 | | (SAFETEA-LU), or any successor federal transportation | 17 | | authorization Act, shall be deposited into the Federal High | 18 | | Speed Rail Trust Fund. | 19 | | (c-2) Any money received by the Department of | 20 | | Transportation as reimbursement for expenditures for transit | 21 | | capital purposes pursuant to appropriations from the | 22 | | Transportation Bond, Series B Fund for projects authorized by | 23 | | the federal government under the provisions of the American | 24 | | Recovery and Reinvestment Act of 2009 or the Safe Accountable | 25 | | Flexible Efficient Transportation Equity Act-A Legacy for | 26 | | Users (SAFETEA-LU), or any successor federal transportation |
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| 1 | | authorization Act, shall be deposited into the Federal Mass | 2 | | Transit Trust Fund. | 3 | | (Source: P.A. 100-23, eff. 7-6-17 .)
| 4 | | Section 25. The Illinois Pension Code is amended by | 5 | | changing Sections 14-152.1, 15-198, and 16-203 and by adding | 6 | | Sections 14-147.5, 15-185.5, and 16-190.5 as follows: | 7 | | (40 ILCS 5/14-147.5 new) | 8 | | Sec. 14-147.5. Accelerated pension benefit payment. | 9 | | (a) As used in this Section: | 10 | | "Eligible person" means a person who: | 11 | | (1) has terminated service; | 12 | | (2) has accrued sufficient service credit to be | 13 | | eligible to receive a retirement annuity under this | 14 | | Article; | 15 | | (3) has not received any retirement annuity under this | 16 | | Article; and | 17 | | (4) does not have a QILDRO in effect against him or her | 18 | | under this Article. | 19 | | "Pension benefit" means the benefits under this Article, or | 20 | | Article 1 as it relates to those benefits, including any | 21 | | anticipated annual increases, that an eligible person is | 22 | | entitled to upon attainment of the applicable retirement age. | 23 | | "Pension benefit" also includes applicable survivor's or | 24 | | disability benefits. |
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| 1 | | (b) Before January 1, 2019, and annually thereafter, the | 2 | | System shall calculate, using actuarial tables and other | 3 | | assumptions adopted by the Board, the net present value of | 4 | | pension benefits for each eligible person and shall offer each | 5 | | eligible person the opportunity to irrevocably elect to receive | 6 | | an amount determined by the System to be equal to 75% of the | 7 | | net present value of his or her pension benefits in lieu of | 8 | | receiving any pension benefit. The offer shall specify the | 9 | | dollar amount that the eligible person will receive if he or | 10 | | she so elects and shall expire when a subsequent offer is made | 11 | | to the eligible person or when the System determines that 10% | 12 | | of eligible persons in that year have made the election under | 13 | | this subsection, whichever occurs first. The System shall make | 14 | | a good faith effort to contact every eligible person to notify | 15 | | him or her of the election and of the amount of the accelerated | 16 | | pension benefit payment. | 17 | | Until the System determines that 10% of eligible persons in | 18 | | that year have made the election under this subsection, an | 19 | | eligible person may irrevocably elect to receive an accelerated | 20 | | pension benefit payment in the amount that the System offers | 21 | | under this subsection in lieu of receiving any pension benefit. | 22 | | A person who elects to receive an accelerated pension benefit | 23 | | payment under this Section may not elect to proceed under the | 24 | | Retirement Systems Reciprocal Act with respect to service under | 25 | | this Article. | 26 | | (c) A person's credits and creditable service under this |
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| 1 | | Article shall be terminated upon the person's receipt of an | 2 | | accelerated pension benefit payment under this Section, and no | 3 | | other benefit shall be paid under this Article based on those | 4 | | terminated credits and creditable service, including any | 5 | | retirement, survivor, or other benefit or refund; except that | 6 | | to the extent that participation, benefits, or premiums under | 7 | | the State Employees Group Insurance Act of 1971 are based on | 8 | | the amount of service credit, the terminated service credit | 9 | | shall be used for that purpose. | 10 | | (d) If a person who has received an accelerated pension | 11 | | benefit payment under this Section returns to active service | 12 | | under this Article, then: | 13 | | (1) Any benefits under the System earned as a result of | 14 | | that return to active service shall be based solely on the | 15 | | person's credits and creditable service arising from the | 16 | | return to active service. | 17 | | (2) The accelerated pension benefit payment may not be | 18 | | repaid to the System, and the terminated credits and | 19 | | creditable service may not under any circumstances be | 20 | | reinstated. | 21 | | (e) As a condition of receiving an accelerated pension | 22 | | benefit payment, an eligible person must have another | 23 | | retirement plan or account qualified under the Internal Revenue | 24 | | Code of 1986, as amended, for the accelerated pension benefit | 25 | | payment to be rolled into. The accelerated pension benefit | 26 | | payment under this Section may be subject to withholding or |
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| 1 | | payment of applicable taxes, but to the extent permitted by | 2 | | federal law, a person who receives an accelerated pension | 3 | | benefit payment under this Section must direct the System to | 4 | | pay all of that payment as a rollover into another retirement | 5 | | plan or account qualified under the Internal Revenue Code of | 6 | | 1986, as amended. | 7 | | (f) Before January 1, 2020 and every January 1 thereafter, | 8 | | the Board shall certify to the Illinois Finance Authority and | 9 | | the General Assembly the amount by which the total amount of | 10 | | accelerated pension benefit payments made under this Section | 11 | | exceed the amount appropriated to the System for the purpose of | 12 | | making those payments. | 13 | | (g) The Board shall adopt any rules necessary to implement | 14 | | this Section. | 15 | | (h) No provision of this Section shall be interpreted in a | 16 | | way that would cause the applicable System to cease to be a | 17 | | qualified plan under the Internal Revenue Code of 1986. | 18 | | (i) Notwithstanding any other provision of this Section, in | 19 | | no case shall the total amount of accelerated pension benefit | 20 | | payments paid under this Section, Section 15-185.5, and Section | 21 | | 16-190.5 cause the Illinois Finance Authority to issue more | 22 | | than the $250,000,000 of State Pension Obligation Acceleration | 23 | | Bonds authorized in subsection (c-5) of Section 801-40 of the | 24 | | Illinois Finance Authority Act. | 25 | | (40 ILCS 5/14-152.1)
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| 1 | | Sec. 14-152.1. Application and expiration of new benefit | 2 | | increases. | 3 | | (a) As used in this Section, "new benefit increase" means | 4 | | an increase in the amount of any benefit provided under this | 5 | | Article, or an expansion of the conditions of eligibility for | 6 | | any benefit under this Article, that results from an amendment | 7 | | to this Code that takes effect after June 1, 2005 (the | 8 | | effective date of Public Act 94-4). "New benefit increase", | 9 | | however, does not include any benefit increase resulting from | 10 | | the changes made to Article 1 or this Article by Public Act | 11 | | 96-37 , Public Act 100-23, or this amendatory Act of the 100th | 12 | | General Assembly by this amendatory Act of the 100th General | 13 | | Assembly .
| 14 | | (b) Notwithstanding any other provision of this Code or any | 15 | | subsequent amendment to this Code, every new benefit increase | 16 | | is subject to this Section and shall be deemed to be granted | 17 | | only in conformance with and contingent upon compliance with | 18 | | the provisions of this Section.
| 19 | | (c) The Public Act enacting a new benefit increase must | 20 | | identify and provide for payment to the System of additional | 21 | | funding at least sufficient to fund the resulting annual | 22 | | increase in cost to the System as it accrues. | 23 | | Every new benefit increase is contingent upon the General | 24 | | Assembly providing the additional funding required under this | 25 | | subsection. The Commission on Government Forecasting and | 26 | | Accountability shall analyze whether adequate additional |
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| 1 | | funding has been provided for the new benefit increase and | 2 | | shall report its analysis to the Public Pension Division of the | 3 | | Department of Insurance. A new benefit increase created by a | 4 | | Public Act that does not include the additional funding | 5 | | required under this subsection is null and void. If the Public | 6 | | Pension Division determines that the additional funding | 7 | | provided for a new benefit increase under this subsection is or | 8 | | has become inadequate, it may so certify to the Governor and | 9 | | the State Comptroller and, in the absence of corrective action | 10 | | by the General Assembly, the new benefit increase shall expire | 11 | | at the end of the fiscal year in which the certification is | 12 | | made.
| 13 | | (d) Every new benefit increase shall expire 5 years after | 14 | | its effective date or on such earlier date as may be specified | 15 | | in the language enacting the new benefit increase or provided | 16 | | under subsection (c). This does not prevent the General | 17 | | Assembly from extending or re-creating a new benefit increase | 18 | | by law. | 19 | | (e) Except as otherwise provided in the language creating | 20 | | the new benefit increase, a new benefit increase that expires | 21 | | under this Section continues to apply to persons who applied | 22 | | and qualified for the affected benefit while the new benefit | 23 | | increase was in effect and to the affected beneficiaries and | 24 | | alternate payees of such persons, but does not apply to any | 25 | | other person, including without limitation a person who | 26 | | continues in service after the expiration date and did not |
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| 1 | | apply and qualify for the affected benefit while the new | 2 | | benefit increase was in effect.
| 3 | | (Source: P.A. 100-23, eff. 7-6-17.) | 4 | | (40 ILCS 5/15-185.5 new) | 5 | | Sec. 15-185.5. Accelerated pension benefit payment. | 6 | | (a) As used in this Section: | 7 | | "Eligible person" means a person who: | 8 | | (1) has terminated service; | 9 | | (2) has accrued sufficient service credit to be | 10 | | eligible to receive a retirement annuity under this | 11 | | Article; | 12 | | (3) has not received any retirement annuity under this | 13 | | Article; | 14 | | (4) does not have a QILDRO in effect against him or her | 15 | | under this Article; and | 16 | | (5) is not a participant in the self-managed plan under | 17 | | Section 15-158.2. | 18 | | "Pension benefit" means the benefits under this Article, or | 19 | | Article 1 as it relates to those benefits, including any | 20 | | anticipated annual increases, that an eligible person is | 21 | | entitled to upon attainment of the applicable retirement age. | 22 | | "Pension benefit" also includes applicable survivor's or | 23 | | disability benefits. | 24 | | (b) Before January 1, 2019, and annually thereafter, the | 25 | | System shall calculate, using actuarial tables and other |
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| 1 | | assumptions adopted by the Board, the net present value of | 2 | | pension benefits for each eligible person and shall offer each | 3 | | eligible person the opportunity to irrevocably elect to receive | 4 | | an amount determined by the System to be equal to 75% of the | 5 | | net present value of his or her pension benefits in lieu of | 6 | | receiving any pension benefit. The offer shall specify the | 7 | | dollar amount that the eligible person will receive if he or | 8 | | she so elects and shall expire when a subsequent offer is made | 9 | | to the eligible person or when the System determines that 10% | 10 | | of eligible persons in that year have made the election under | 11 | | this subsection, whichever occurs first. The System shall make | 12 | | a good faith effort to contact every eligible person to notify | 13 | | him or her of the election and of the amount of the accelerated | 14 | | pension benefit payment. | 15 | | Until the System determines that 10% of eligible persons in | 16 | | that year have made the election under this subsection, an | 17 | | eligible person may irrevocably elect to receive an accelerated | 18 | | pension benefit payment in the amount that the System offers | 19 | | under this subsection in lieu of receiving any pension benefit. | 20 | | A person who elects to receive an accelerated pension benefit | 21 | | payment under this Section may not elect to proceed under the | 22 | | Retirement Systems Reciprocal Act with respect to service under | 23 | | this Article. | 24 | | (c) A person's credits and creditable service under this | 25 | | Article shall be terminated upon the person's receipt of an | 26 | | accelerated pension benefit payment under this Section, and no |
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| 1 | | other benefit shall be paid under this Article based on those | 2 | | terminated credits and creditable service, including any | 3 | | retirement, survivor, or other benefit or refund; except that | 4 | | to the extent that participation, benefits, or premiums under | 5 | | the State Employees Group Insurance Act of 1971 are based on | 6 | | the amount of service credit, the terminated service credit | 7 | | shall be used for that purpose. | 8 | | (d) If a person who has received an accelerated pension | 9 | | benefit payment under this Section returns to participating | 10 | | employee status under this Article, then: | 11 | | (1) Any benefits under the System earned as a result of | 12 | | that return to participating employee status shall be based | 13 | | solely on the person's credits and creditable service | 14 | | arising from the return to participating employee status. | 15 | | (2) The accelerated pension benefit payment may not be | 16 | | repaid to the System, and the terminated credits and | 17 | | creditable service may not under any circumstances be | 18 | | reinstated. | 19 | | (e) As a condition of receiving an accelerated pension | 20 | | benefit payment, an eligible person must have another | 21 | | retirement plan or account qualified under the Internal Revenue | 22 | | Code of 1986, as amended, for the accelerated pension benefit | 23 | | payment to be rolled into. The accelerated pension benefit | 24 | | payment under this Section may be subject to withholding or | 25 | | payment of applicable taxes, but to the extent permitted by | 26 | | federal law, a person who receives an accelerated pension |
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| 1 | | benefit payment under this Section must direct the System to | 2 | | pay all of that payment as a rollover into another retirement | 3 | | plan or account qualified under the Internal Revenue Code of | 4 | | 1986, as amended. | 5 | | (f) Before January 1, 2020 and every January 1 thereafter, | 6 | | the Board shall certify to the Illinois Finance Authority and | 7 | | the General Assembly the amount by which the total amount of | 8 | | accelerated pension benefit payments made under this Section | 9 | | exceed the amount appropriated to the System for the purpose of | 10 | | making those payments. | 11 | | (g) The Board shall adopt any rules necessary to implement | 12 | | this Section. | 13 | | (h) No provision of this Section shall be interpreted in a | 14 | | way that would cause the applicable System to cease to be a | 15 | | qualified plan under the Internal Revenue Code of 1986. | 16 | | (i) Notwithstanding any other provision of this Section, in | 17 | | no case shall the total amount of accelerated pension benefit | 18 | | payments paid under this Section, Section 14-147.5, and Section | 19 | | 16-190.5 cause the Illinois Finance Authority to issue more | 20 | | than the $250,000,000 of State Pension Obligation Acceleration | 21 | | Bonds authorized in subsection (c-5) of Section 801-40 of the | 22 | | Illinois Finance Authority Act. | 23 | | (40 ILCS 5/15-198)
| 24 | | Sec. 15-198. Application and expiration of new benefit | 25 | | increases. |
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| 1 | | (a) As used in this Section, "new benefit increase" means | 2 | | an increase in the amount of any benefit provided under this | 3 | | Article, or an expansion of the conditions of eligibility for | 4 | | any benefit under this Article, that results from an amendment | 5 | | to this Code that takes effect after the effective date of this | 6 | | amendatory Act of the 94th General Assembly. "New benefit | 7 | | increase", however, does not include any benefit increase | 8 | | resulting from the changes made to Article 1 or this Article by | 9 | | Public Act 100-23 or this amendatory Act of the 100th General | 10 | | Assembly this amendatory Act of the 100th General Assembly . | 11 | | (b) Notwithstanding any other provision of this Code or any | 12 | | subsequent amendment to this Code, every new benefit increase | 13 | | is subject to this Section and shall be deemed to be granted | 14 | | only in conformance with and contingent upon compliance with | 15 | | the provisions of this Section.
| 16 | | (c) The Public Act enacting a new benefit increase must | 17 | | identify and provide for payment to the System of additional | 18 | | funding at least sufficient to fund the resulting annual | 19 | | increase in cost to the System as it accrues. | 20 | | Every new benefit increase is contingent upon the General | 21 | | Assembly providing the additional funding required under this | 22 | | subsection. The Commission on Government Forecasting and | 23 | | Accountability shall analyze whether adequate additional | 24 | | funding has been provided for the new benefit increase and | 25 | | shall report its analysis to the Public Pension Division of the | 26 | | Department of Insurance. A new benefit increase created by a |
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| 1 | | Public Act that does not include the additional funding | 2 | | required under this subsection is null and void. If the Public | 3 | | Pension Division determines that the additional funding | 4 | | provided for a new benefit increase under this subsection is or | 5 | | has become inadequate, it may so certify to the Governor and | 6 | | the State Comptroller and, in the absence of corrective action | 7 | | by the General Assembly, the new benefit increase shall expire | 8 | | at the end of the fiscal year in which the certification is | 9 | | made.
| 10 | | (d) Every new benefit increase shall expire 5 years after | 11 | | its effective date or on such earlier date as may be specified | 12 | | in the language enacting the new benefit increase or provided | 13 | | under subsection (c). This does not prevent the General | 14 | | Assembly from extending or re-creating a new benefit increase | 15 | | by law. | 16 | | (e) Except as otherwise provided in the language creating | 17 | | the new benefit increase, a new benefit increase that expires | 18 | | under this Section continues to apply to persons who applied | 19 | | and qualified for the affected benefit while the new benefit | 20 | | increase was in effect and to the affected beneficiaries and | 21 | | alternate payees of such persons, but does not apply to any | 22 | | other person, including without limitation a person who | 23 | | continues in service after the expiration date and did not | 24 | | apply and qualify for the affected benefit while the new | 25 | | benefit increase was in effect.
| 26 | | (Source: P.A. 100-23, eff. 7-6-17.) |
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| 1 | | (40 ILCS 5/16-190.5 new) | 2 | | Sec. 16-190.5. Accelerated pension benefit payment. | 3 | | (a) As used in this Section: | 4 | | "Eligible person" means a person who: | 5 | | (1) has terminated service; | 6 | | (2) has accrued sufficient service credit to be | 7 | | eligible to receive a retirement annuity under this | 8 | | Article; | 9 | | (3) has not received any retirement annuity under this | 10 | | Article; and | 11 | | (4) does not have a QILDRO in effect against him or her | 12 | | under this Article. | 13 | | "Pension benefit" means the benefits under this Article, or | 14 | | Article 1 as it relates to those benefits, including any | 15 | | anticipated annual increases, that an eligible person is | 16 | | entitled to upon attainment of the applicable retirement age. | 17 | | "Pension benefit" also includes applicable survivor's or | 18 | | disability benefits. | 19 | | (b) Before January 1, 2019, and annually thereafter, the | 20 | | System shall calculate, using actuarial tables and other | 21 | | assumptions adopted by the Board, the net present value of | 22 | | pension benefits for each eligible person and shall offer each | 23 | | eligible person the opportunity to irrevocably elect to receive | 24 | | an amount determined by the System to be equal to 75% of the | 25 | | net present value of his or her pension benefits in lieu of |
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| 1 | | receiving any pension benefit. The offer shall specify the | 2 | | dollar amount that the eligible person will receive if he or | 3 | | she so elects and shall expire when a subsequent offer is made | 4 | | to the eligible person or when the System determines that 10% | 5 | | of eligible persons in that year have made the election under | 6 | | this subsection, whichever occurs first. The System shall make | 7 | | a good faith effort to contact every eligible person to notify | 8 | | him or her of the election and of the amount of the accelerated | 9 | | pension benefit payment. | 10 | | Until the System determines that 10% of eligible persons in | 11 | | that year have made the election under this subsection, an | 12 | | eligible person may irrevocably elect to receive an accelerated | 13 | | pension benefit payment in the amount that the System offers | 14 | | under this subsection in lieu of receiving any pension benefit. | 15 | | A person who elects to receive an accelerated pension benefit | 16 | | payment under this Section may not elect to proceed under the | 17 | | Retirement Systems Reciprocal Act with respect to service under | 18 | | this Article. | 19 | | (c) A person's credits and creditable service under this | 20 | | Article shall be terminated upon the person's receipt of an | 21 | | accelerated pension benefit payment under this Section, and no | 22 | | other benefit shall be paid under this Article based on those | 23 | | terminated credits and creditable service, including any | 24 | | retirement, survivor, or other benefit or refund; except that | 25 | | to the extent that participation, benefits, or premiums under | 26 | | the State Employees Group Insurance Act of 1971 are based on |
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| 1 | | the amount of service credit, the terminated service credit | 2 | | shall be used for that purpose. | 3 | | (d) If a person who has received an accelerated pension | 4 | | benefit payment under this Section returns to active service | 5 | | under this Article, then: | 6 | | (1) Any benefits under the System earned as a result of | 7 | | that return to active service shall be based solely on the | 8 | | person's credits and creditable service arising from the | 9 | | return to active service. | 10 | | (2) The accelerated pension benefit payment may not be | 11 | | repaid to the System, and the terminated credits and | 12 | | creditable service may not under any circumstances be | 13 | | reinstated. | 14 | | (e) As a condition of receiving an accelerated pension | 15 | | benefit payment, an eligible person must have another | 16 | | retirement plan or account qualified under the Internal Revenue | 17 | | Code of 1986, as amended, for the accelerated pension benefit | 18 | | payment to be rolled into. The accelerated pension benefit | 19 | | payment under this Section may be subject to withholding or | 20 | | payment of applicable taxes, but to the extent permitted by | 21 | | federal law, a person who receives an accelerated pension | 22 | | benefit payment under this Section must direct the System to | 23 | | pay all of that payment as a rollover into another retirement | 24 | | plan or account qualified under the Internal Revenue Code of | 25 | | 1986, as amended. | 26 | | (f) Before January 1, 2020 and every January 1 thereafter, |
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| 1 | | the Board shall certify to the Illinois Finance Authority and | 2 | | the General Assembly the amount by which the total amount of | 3 | | accelerated pension benefit payments made under this Section | 4 | | exceed the amount appropriated to the System for the purpose of | 5 | | making those payments. | 6 | | (g) The Board shall adopt any rules necessary to implement | 7 | | this Section. | 8 | | (h) No provision of this Section shall be interpreted in a | 9 | | way that would cause the applicable System to cease to be a | 10 | | qualified plan under the Internal Revenue Code of 1986. | 11 | | (i) Notwithstanding any other provision of this Section, in | 12 | | no case shall the total amount of accelerated pension benefit | 13 | | payments paid under this Section, Section 14-147.5, and Section | 14 | | 15-185.5 cause the Illinois Finance Authority to issue more | 15 | | than the $250,000,000 of State Pension Obligation Acceleration | 16 | | Bonds authorized in subsection (c-5) of Section 801-40 of the | 17 | | Illinois Finance Authority Act. | 18 | | (40 ILCS 5/16-203)
| 19 | | Sec. 16-203. Application and expiration of new benefit | 20 | | increases. | 21 | | (a) As used in this Section, "new benefit increase" means | 22 | | an increase in the amount of any benefit provided under this | 23 | | Article, or an expansion of the conditions of eligibility for | 24 | | any benefit under this Article, that results from an amendment | 25 | | to this Code that takes effect after June 1, 2005 (the |
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| 1 | | effective date of Public Act 94-4). "New benefit increase", | 2 | | however, does not include any benefit increase resulting from | 3 | | the changes made to Article 1 or this Article by Public Act | 4 | | 95-910 , Public Act 100-23, or this amendatory Act of the 100th | 5 | | General Assembly or this amendatory Act of the 100th General | 6 | | Assembly . | 7 | | (b) Notwithstanding any other provision of this Code or any | 8 | | subsequent amendment to this Code, every new benefit increase | 9 | | is subject to this Section and shall be deemed to be granted | 10 | | only in conformance with and contingent upon compliance with | 11 | | the provisions of this Section.
| 12 | | (c) The Public Act enacting a new benefit increase must | 13 | | identify and provide for payment to the System of additional | 14 | | funding at least sufficient to fund the resulting annual | 15 | | increase in cost to the System as it accrues. | 16 | | Every new benefit increase is contingent upon the General | 17 | | Assembly providing the additional funding required under this | 18 | | subsection. The Commission on Government Forecasting and | 19 | | Accountability shall analyze whether adequate additional | 20 | | funding has been provided for the new benefit increase and | 21 | | shall report its analysis to the Public Pension Division of the | 22 | | Department of Insurance. A new benefit increase created by a | 23 | | Public Act that does not include the additional funding | 24 | | required under this subsection is null and void. If the Public | 25 | | Pension Division determines that the additional funding | 26 | | provided for a new benefit increase under this subsection is or |
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| 1 | | has become inadequate, it may so certify to the Governor and | 2 | | the State Comptroller and, in the absence of corrective action | 3 | | by the General Assembly, the new benefit increase shall expire | 4 | | at the end of the fiscal year in which the certification is | 5 | | made.
| 6 | | (d) Every new benefit increase shall expire 5 years after | 7 | | its effective date or on such earlier date as may be specified | 8 | | in the language enacting the new benefit increase or provided | 9 | | under subsection (c). This does not prevent the General | 10 | | Assembly from extending or re-creating a new benefit increase | 11 | | by law. | 12 | | (e) Except as otherwise provided in the language creating | 13 | | the new benefit increase, a new benefit increase that expires | 14 | | under this Section continues to apply to persons who applied | 15 | | and qualified for the affected benefit while the new benefit | 16 | | increase was in effect and to the affected beneficiaries and | 17 | | alternate payees of such persons, but does not apply to any | 18 | | other person, including without limitation a person who | 19 | | continues in service after the expiration date and did not | 20 | | apply and qualify for the affected benefit while the new | 21 | | benefit increase was in effect.
| 22 | | (Source: P.A. 100-23, eff. 7-6-17.) | 23 | | Section 30. The State Pension Funds Continuing | 24 | | Appropriation Act is amended by adding Section 1.9 as follows: |
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| 1 | | (40 ILCS 15/1.9 new) | 2 | | Sec. 1.9. Appropriations for State Pension Obligation | 3 | | Acceleration Bonds. If for any reason the aggregate | 4 | | appropriations made available are insufficient to meet the | 5 | | levels required for the payment of principal and interest due | 6 | | on State Pension Obligation Acceleration Bonds under Section | 7 | | 7.7 of the General Obligation Bond Act, this Section shall | 8 | | constitute a continuing appropriation of all amounts necessary | 9 | | for those purposes.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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