Full Text of SB2296 96th General Assembly
SB2296 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB2296
Introduced 2/20/2009, by Sen. Chris Lauzen SYNOPSIS AS INTRODUCED: |
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30 ILCS 330/2 |
from Ch. 127, par. 652 |
30 ILCS 330/7.3 new |
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30 ILCS 330/12 |
from Ch. 127, par. 662 |
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Amends the General Obligation Bond Act. Authorizes an additional $10,000,000,000 for making contributions to the State Employees', Teachers', State Universities, Judges, and General Assembly Retirement Systems. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
STATE DEBT IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB2296 |
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LRB096 09363 RCE 19520 b |
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| AN ACT concerning finance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The General Obligation Bond Act is amended by | 5 |
| changing Sections 2 and 12 and by adding Section 7.3 as | 6 |
| follows:
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| (30 ILCS 330/2) (from Ch. 127, par. 652)
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| Sec. 2. Authorization for Bonds. The State of Illinois is | 9 |
| authorized to
issue, sell and provide for the retirement of | 10 |
| General Obligation Bonds of
the State of Illinois for the | 11 |
| categories and specific purposes expressed in
Sections 2 | 12 |
| through 8 of this Act, in the total amount of $37,693,149,369 | 13 |
| $27,693,149,369 .
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| The bonds authorized in this Section 2 and in Section 16 of | 15 |
| this Act are
herein called "Bonds".
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| Of the total amount of Bonds authorized in this Act, up to | 17 |
| $2,200,000,000
in aggregate original principal amount may be | 18 |
| issued and sold in accordance
with the Baccalaureate Savings | 19 |
| Act in the form of General Obligation
College Savings Bonds.
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| Of the total amount of Bonds authorized in this Act, up to | 21 |
| $300,000,000 in
aggregate original principal amount may be | 22 |
| issued and sold in accordance
with the Retirement Savings Act | 23 |
| in the form of General Obligation
Retirement Savings Bonds.
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SB2296 |
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LRB096 09363 RCE 19520 b |
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| Of the total amount of Bonds authorized in this Act, the | 2 |
| additional
$10,000,000,000 authorized by this amendatory Act | 3 |
| of the 93rd General
Assembly shall be used solely as provided | 4 |
| in Section 7.2.
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| The issuance and sale of Bonds pursuant to the General | 6 |
| Obligation Bond
Act is an economical and efficient method of | 7 |
| financing the long-term capital needs of
the State. This Act | 8 |
| will permit the issuance of a multi-purpose General
Obligation | 9 |
| Bond with uniform terms and features. This will not only lower
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| the cost of registration but also reduce the overall cost of | 11 |
| issuing debt
by improving the marketability of Illinois General | 12 |
| Obligation Bonds.
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| (Source: P.A. 95-1026, eff. 1-12-09.)
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| (30 ILCS 330/7.3 new) | 15 |
| Sec. 7.3. Additional State pension funding. | 16 |
| (a) The amount of $10,000,000,000 is authorized to be used | 17 |
| for the purpose of making contributions to the designated | 18 |
| retirement systems. Interest payable on Bonds issued under this | 19 |
| Section shall be at a fixed rate not to exceed a true interest | 20 |
| cost of 5%. Bonds issued under this Section shall comply with | 21 |
| all provisions of this Act, including but not limited to the | 22 |
| requirements for equal principal amounts not to exceed 25 years | 23 |
| as required by Section 9. For the purposes of this Section, | 24 |
| "designated retirement systems" means the State Employees' | 25 |
| Retirement System of Illinois; the Teachers' Retirement System |
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| of the State of Illinois; the State Universities Retirement | 2 |
| System; the Judges Retirement System of Illinois; and the | 3 |
| General Assembly Retirement System. | 4 |
| (b) The proceeds of the additional $10,000,000,000 of Bonds | 5 |
| authorized by this amendatory Act of the 96th General Assembly, | 6 |
| less the amounts authorized in the Bond Sale Order for accrued | 7 |
| interest and directly paid out for bond sale expenses under | 8 |
| Section 8, shall be deposited into the Pension Contribution | 9 |
| Fund and used as provided in this Section. | 10 |
| (c) All amounts deposited into the Pension Contribution | 11 |
| Fund shall be appropriated to the designated retirement systems | 12 |
| to reduce their actuarial reserve deficiencies. The amount of | 13 |
| the appropriation to each designated retirement system shall | 14 |
| constitute a portion of the total appropriation under this | 15 |
| subsection that is the same as that retirement system's portion | 16 |
| of the total actuarial reserve deficiency of the systems, as | 17 |
| most recently determined by the Governor's Office of Management | 18 |
| and Budget under Section 8.12 of the State Finance Act. | 19 |
| Within 15 days after any Bond proceeds in excess of the | 20 |
| amounts initially reserved under subsection (c) are deposited | 21 |
| into the Pension Contribution Fund, the Governor's Office of | 22 |
| Management and Budget shall (i) allocate those proceeds among | 23 |
| the designated retirement systems in proportion to their | 24 |
| respective actuarial reserve deficiencies, as most recently | 25 |
| determined under Section 8.12 of the State Finance Act, and | 26 |
| (ii) certify those allocations to the designated retirement |
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| systems and the Comptroller. | 2 |
| Upon receiving certification of an allocation under this | 3 |
| subsection, a designated retirement system shall submit to the | 4 |
| Comptroller a voucher for the amount of its allocation. The | 5 |
| voucher shall be paid out of the amount appropriated to that | 6 |
| designated retirement system from the Pension Contribution | 7 |
| Fund pursuant to this subsection.
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| (30 ILCS 330/12) (from Ch. 127, par. 662)
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| Sec. 12. Allocation of Proceeds from Sale of Bonds.
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| (a) Proceeds from the sale of Bonds, authorized by Section | 11 |
| 3 of this Act,
shall be deposited in the separate fund known as | 12 |
| the Capital Development Fund.
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| (b) Proceeds from the sale of Bonds, authorized by | 14 |
| paragraph (a) of Section
4 of this Act, shall be deposited in | 15 |
| the separate fund known as the
Transportation Bond, Series A | 16 |
| Fund.
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| (c) Proceeds from the sale of Bonds, authorized by | 18 |
| paragraphs (b) and (c)
of Section 4 of this Act, shall be | 19 |
| deposited in the separate fund known
as the Transportation | 20 |
| Bond, Series B Fund.
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| (d) Proceeds from the sale of Bonds, authorized by Section | 22 |
| 5 of this
Act, shall be deposited in the separate fund known as | 23 |
| the School Construction
Fund.
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| (e) Proceeds from the sale of Bonds, authorized by Section | 25 |
| 6 of this Act,
shall be deposited in the separate fund known as |
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| the Anti-Pollution Fund.
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| (f) Proceeds from the sale of Bonds, authorized by Section | 3 |
| 7 of this Act,
shall be deposited in the separate fund known as | 4 |
| the Coal Development Fund.
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| (f-2) Proceeds from the sale of Bonds, authorized by | 6 |
| Section 7.2 of this
Act, shall be deposited as set forth in | 7 |
| Section 7.2. Proceeds from the sale of Bonds, authorized by | 8 |
| Section 7.3 of this
Act, shall be deposited as set forth in | 9 |
| Section 7.3.
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| (f-5) Proceeds from the sale of Bonds, authorized by | 11 |
| Section 7.5 of this
Act, shall be deposited as set forth in | 12 |
| Section 7.5.
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| (g) Proceeds from the sale of Bonds, authorized by Section | 14 |
| 8 of this Act,
shall be deposited in
the Capital Development | 15 |
| Fund.
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| (h) Subsequent to the issuance of any Bonds for the | 17 |
| purposes described
in Sections 2 through 8 of this Act, the | 18 |
| Governor and the Director of the
Governor's Office of | 19 |
| Management and Budget may provide for the reallocation of | 20 |
| unspent proceeds
of such Bonds to any other purposes authorized | 21 |
| under said Sections of this
Act, subject to the limitations on | 22 |
| aggregate principal amounts contained
therein. Upon any such | 23 |
| reallocation, such unspent proceeds shall be
transferred to the | 24 |
| appropriate funds as determined by reference to
paragraphs (a) | 25 |
| through (g) of this Section.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-793, eff. 5-19-06.)
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.
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