Full Text of SB0490 94th General Assembly
SB0490enr 94TH GENERAL ASSEMBLY
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| AN ACT concerning State Government.
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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 Illinois
Unemployment Insurance
Trust Fund | 5 |
| Financing Act is amended by changing Sections 3 and 4 as | 6 |
| follows: | 7 |
| (30 ILCS 440/3)
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| Sec. 3. Definitions. For purposes of this Act:
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| A. "Act" shall mean the Illinois Unemployment Insurance | 10 |
| Trust Fund
Financing Act.
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| B. "Benefits" shall have the meaning provided in the | 12 |
| Unemployment
Insurance Act.
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| C. "Bond" means any type of revenue obligation, including, | 14 |
| without
limitation, fixed
rate, variable rate, auction rate or | 15 |
| similar bond, note, certificate, or other
instrument, | 16 |
| including,
without limitation, an interest rate exchange | 17 |
| agreement, an interest rate lock
agreement, a
currency exchange | 18 |
| agreement, a forward payment conversion agreement, an
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| agreement to
provide payments based on levels of or changes in | 20 |
| interest rates or currency
exchange rates, an
agreement to | 21 |
| exchange cash flows or a series of payments, an option, put, or
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| call to hedge
payment, currency, interest rate, or other | 23 |
| exposure, payable from and secured
by
a pledge of
Fund Building | 24 |
| Receipts collected pursuant to the Unemployment Insurance Act,
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| and
all interest
and other earnings upon such amounts held in | 26 |
| the Master Bond Fund, to the
extent
provided in
the proceedings | 27 |
| authorizing the obligation.
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| D. "Bond Administrative Expenses" means expenses and fees | 29 |
| incurred to
administer
and issue, upon a conversion of any of | 30 |
| the Bonds from one mode to another and
from taxable to
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| tax-exempt, the Bonds issued pursuant to this Act, including | 32 |
| fees for paying
agents, trustees,
financial advisors, |
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| underwriters, remarketing agents, attorneys and for other
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| professional services
necessary to ensure compliance with | 3 |
| applicable state or federal law.
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| E. "Bond Obligations" means the principal of a Bond and any | 5 |
| premium and
interest
on a Bond issued pursuant to this Act, | 6 |
| together with any amount owed under a
related Credit
Agreement.
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| F. "Credit Agreement" means, without limitation, a loan | 8 |
| agreement, a
revolving
credit agreement, an agreement | 9 |
| establishing a line of credit, a letter of
credit, notes, | 10 |
| municipal
bond insurance, standby bond purchase agreements, | 11 |
| surety bonds, remarketing
agreements and
the like, by which the | 12 |
| Department may borrow funds to pay or redeem or purchase
and | 13 |
| hold its
bonds, agreements for the purchase or remarketing of | 14 |
| bonds or any other
agreement that
enhances the marketability, | 15 |
| security, or creditworthiness of a Bond issued
under
this Act.
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| 1. Such Credit Agreement shall provide the following:
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| a. The choice of law for the obligations of a | 18 |
| financial provider may
be made for any state of these | 19 |
| United States, but the law which shall
apply
to the | 20 |
| Bonds shall be the law of the State of Illinois, and | 21 |
| jurisdiction to
enforce
such Credit Agreement as | 22 |
| against the Department shall be exclusively in the
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| courts of the State of Illinois or in the applicable | 24 |
| federal court having
jurisdiction
and located within | 25 |
| the State of Illinois.
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| b. Any such Credit Agreement shall be fully | 27 |
| enforceable as a valid
and binding contract as and to | 28 |
| the extent provided by applicable law.
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| 2. Without limiting the foregoing, such Credit | 30 |
| Agreement, may include
any
of the following:
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| a. Interest rates on the Bonds may vary from time | 32 |
| to time depending
upon criteria established by the | 33 |
| Director, which may include, without
limitation:
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| (i) A variation in interest rates as may be | 35 |
| necessary to cause
the Bonds to be remarketed from | 36 |
| time to time at a price equal to their
principal |
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| amount plus any accrued interest;
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| (ii) Rates set by auctions; or
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| (iii) Rates set by formula.
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| b. A national banking association, bank, trust | 5 |
| company, investment
banker or other financial | 6 |
| institution may be appointed to serve as a
remarketing
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| agent in that connection, and such remarketing agent | 8 |
| may be delegated authority
by the Department to | 9 |
| determine interest rates in accordance with criteria
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| established by the Department.
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| c. Alternative interest rates or provisions may | 12 |
| apply during such
times as the Bonds are held by the | 13 |
| financial providers or similar persons or
entities | 14 |
| providing a Credit Agreement for those Bonds and, | 15 |
| during such times,
the
interest on the Bonds may be | 16 |
| deemed not exempt from income taxation under the
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| Internal Revenue Code for purposes of State law, as | 18 |
| contained in the Bond
Authorization Act, relating to | 19 |
| the permissible rate of interest to be borne
thereon.
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| d. Fees may be paid to the financial providers or | 21 |
| similar persons or
entities providing a Credit | 22 |
| Agreement, including all reasonably related costs,
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| including therein costs of enforcement and litigation | 24 |
| (all such fees and costs
being
financial provider | 25 |
| payments) and financial provider payments may be paid,
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| without limitation, from proceeds of the Bonds being | 27 |
| the subject of such
agreements, or from Bonds issued to | 28 |
| refund such Bonds, provided that such
financial | 29 |
| provider payments shall be made subordinate to the | 30 |
| payments on the
Bonds.
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| e. The Bonds need not be held in physical form by | 32 |
| the financial
providers or similar persons or entities | 33 |
| providing a Credit Agreement when
providing funds to | 34 |
| purchase or carry the Bonds from others but may be
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| represented in uncertificated form in the Credit | 36 |
| Agreement.
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| f. The debt or obligation of the Department | 2 |
| represented by a Bond
tendered for purchase to or | 3 |
| otherwise made available to the Department
thereupon
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| acquired by either the Department or a financial | 5 |
| provider shall not be deemed
to
be extinguished for | 6 |
| purposes of State law until cancelled by the Department | 7 |
| or
its
agent.
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| g. Such Credit Agreement may provide for
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| acceleration of the principal amounts due on the
Bonds.
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| G. "Department" means the Illinois Department of
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| Employment Security.
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| H. "Director" means the Director of the Illinois Department | 13 |
| of
Employment
Security.
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| I. "Fund Building Rates" are those rates imposed pursuant | 15 |
| to Section
1506.3 of the
Unemployment Insurance Act.
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| J. "Fund Building Receipts" shall have the meaning provided | 17 |
| in the
Unemployment
Insurance Act and includes earnings on such | 18 |
| receipts .
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| K. "Master Bond Fund" shall mean, for any particular | 20 |
| issuance of Bonds
under this
Act, the fund established for the | 21 |
| deposit of Fund Building Receipts upon or
prior to the issuance
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| of Bonds under this Act, and during the time that any Bonds are | 23 |
| outstanding
under this Act and from
which the
payment of Bond | 24 |
| Obligations and the related Bond Administrative Expenses
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| incurred in
connection with such Bonds shall be made. That | 26 |
| portion of the Master Bond
Fund
containing the Required Fund | 27 |
| Building Receipts Amount shall be irrevocably
pledged to the
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| timely payment of Bond Obligations and Bond Administrative | 29 |
| Expenses due on any
Bonds
issued pursuant to this Act and any | 30 |
| Credit Agreement entered in connection with
the Bonds.
The | 31 |
| Master Bond Fund shall be held separate and apart from all | 32 |
| other
State funds.
Moneys in the Master Bond Fund shall not be | 33 |
| commingled with other State
funds, but they
shall be deposited | 34 |
| as required by law and maintained in a separate account on
the | 35 |
| books of a
savings and loan association, bank or other | 36 |
| qualified financial institution.
All interest earnings on |
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| amounts within
the Master Bond
Fund shall accrue to the Master | 2 |
| Bond Fund.
The Master Bond Fund may include such funds and | 3 |
| accounts as are necessary
for the
deposit of bond proceeds, | 4 |
| Fund Building Receipts, payment of principal,
interest, | 5 |
| administrative
expenses, costs of issuance, in the case of | 6 |
| bonds which are exempt from Federal
taxation, rebate
payments, | 7 |
| and such other funds and accounts which may be necessary for | 8 |
| the
implementation
and administration of this Act.
The Director | 9 |
| shall be liable on her or his general official bond for the
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| faithful
performance of her or his duties as custodian of the | 11 |
| Master Bond Fund. Such
liability on
her or his official bond | 12 |
| shall exist in addition to the liability upon any
separate
bond | 13 |
| given by
her or him. All sums recovered for losses sustained by | 14 |
| the Master Bond Fund
shall
be deposited into
the Fund.
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| The Director shall report quarterly in writing to the | 16 |
| Employment Security
Advisory Board concerning the
actual and
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| anticipated deposits into and expenditures and transfers made | 18 |
| from the Master
Bond Fund.
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| L. "Required Fund Building Receipts Amount" means the | 20 |
| aggregate amount of
Fund
Building Receipts required to be | 21 |
| maintained in the Master Bond Fund as set
forth
in Section 4I
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| of this Act.
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| (Source: P.A. 93-634, eff. 1-1-04.) | 24 |
| (30 ILCS 440/4)
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| Sec. 4. Authority to Issue Revenue Bonds.
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| A. The Department shall have the continuing power to borrow | 27 |
| money for
the purpose
of carrying out the following:
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| 1. To reduce or avoid the need to borrow or obtain a | 29 |
| federal advance
under
Section 1201, et seq., of the Social | 30 |
| Security Act (42 U.S.C. Section 1321), as
amended, or
any | 31 |
| similar federal law; or
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| 2. To refinance a previous advance received by the | 33 |
| Department
with
respect to the payment of Benefits; or
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| 3. To refinance, purchase, redeem, refund, advance | 35 |
| refund or defease
(including, any
combination of the |
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| foregoing) any outstanding Bonds issued pursuant to this
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| Act; or
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| 4. To fund a surplus in Illinois' account in the | 4 |
| Unemployment Trust Fund
of the
United States Treasury.
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| Paragraphs 1, 2 and 4 are inoperative on and after January | 6 |
| 1, 2010.
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| B. As evidence of the obligation of the Department to repay | 8 |
| money
borrowed for the
purposes set forth in Section 4A above, | 9 |
| the Department may issue and dispose of
its interest
bearing | 10 |
| revenue Bonds and may also, from time-to-time, issue and | 11 |
| dispose of its
interest bearing
revenue Bonds to purchase, | 12 |
| redeem, refund, advance refund or defease
(including,
any
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| combination of the foregoing) any Bonds at maturity or pursuant | 14 |
| to redemption
provisions or at
any time before maturity. The | 15 |
| Director, in consultation with the Department's
Employment
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| Security Advisory Board, shall have the power to direct that | 17 |
| the Bonds be
issued. Bonds may be
issued in one or more series | 18 |
| and under terms and conditions as needed in
furtherance of the
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| purposes of this Act. The Illinois Finance Authority shall | 20 |
| provide any
technical, legal, or
administrative services if and | 21 |
| when requested by the Director and the
Employment
Security
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| Advisory Board with regard to the issuance of Bonds. Such
Bonds | 23 |
| shall be
issued in the name of the State of Illinois for the | 24 |
| benefit of the Department
and shall be executed
by the | 25 |
| Director. In case any Director whose signature appears on any | 26 |
| Bond
ceases (after
attaching his or her signature) to hold that | 27 |
| office, her or his signature shall
nevertheless be valid
and | 28 |
| effective for all purposes.
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| C. No Bonds shall be issued without the Director's written
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| certification that, based
upon a reasonable financial | 31 |
| analysis, the issuance of Bonds is reasonably
expected to:
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| (i) Result in a savings to the State as compared to | 33 |
| the cost of
borrowing or
obtaining an advance under | 34 |
| Section 1201, et seq., Social Security Act (42
U.S.C.
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| Section
1321), as amended, or any similar federal law;
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| (ii) Result in terms which are advantageous to the |
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| State through
refunding,
advance refunding or other | 2 |
| similar restructuring of outstanding Bonds; or
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| (iii) Allow the State to avoid an anticipated | 4 |
| deficiency in the State's
account
in the
Unemployment | 5 |
| Trust Fund of the United States Treasury by funding a | 6 |
| surplus in
the
State's account
in the Unemployment | 7 |
| Trust Fund of the United States Treasury.
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| D. All such Bonds shall be payable from Fund Building | 9 |
| Receipts. Bonds
may also
be paid from (i) to the extent | 10 |
| allowable by law, from monies in the State's
account
in the
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| Unemployment Trust Fund of the United States Treasury; and (ii) | 12 |
| to the extent
allowable by law, a
federal advance under Section | 13 |
| 1201, et seq., of the Social Security Act (42
U.S.C. Section | 14 |
| 1321);
and (iii) proceeds of Bonds and receipts from related | 15 |
| credit and exchange
agreements to the extent allowed by this | 16 |
| Act and applicable
legal requirements.
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| E. The maximum principal amount of the Bonds, when combined | 18 |
| with the
outstanding principal of all other Bonds issued | 19 |
| pursuant to this Act, shall not
at any time exceed
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| $1,400,000,000, excluding all of the outstanding principal of | 21 |
| any other Bonds
issued pursuant to
this Act
for which payment
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| has been irrevocably provided by refunding or other manner of | 23 |
| defeasance. It is
the intent of this
Act that the outstanding | 24 |
| Bond authorization limits provided for in this Section
4E shall | 25 |
| be
revolving in nature, such that the amount of Bonds | 26 |
| outstanding that are not
refunded or otherwise
defeased shall | 27 |
| be included in determining the maximum amount of Bonds
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| authorized
to be issued
pursuant to the Act.
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| F. Such Bonds and refunding Bonds issued pursuant to this | 30 |
| Act may bear
such date
or dates, may mature at such time or | 31 |
| times not exceeding 10 years from their
respective dates of
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| issuance, and may bear interest at such rate or rates not | 33 |
| exceeding the maximum
rate authorized
by the Bond Authorization | 34 |
| Act, as amended and in effect at the time of the
issuance of | 35 |
| the
Bonds.
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| G. The Department may enter into a Credit Agreement |
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| pertaining to the
issuance of
the Bonds, upon terms which are | 2 |
| not inconsistent with this Act and any other
laws, provided | 3 |
| that
the term of such Credit Agreement shall not exceed the | 4 |
| term of the Bonds, plus
any time period
necessary to cure any | 5 |
| defaults under such Credit Agreement.
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| H. Interest earnings paid to holders of the Bonds shall not | 7 |
| be exempt
from income
taxes imposed by the State.
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| I. While any Bond Obligations are outstanding or | 9 |
| anticipated to come
due as a result
of Bonds expected to be | 10 |
| issued in either or both of the 2 immediately
succeeding | 11 |
| calendar quarters, the
Department shall
collect and deposit | 12 |
| Fund Building Receipts into the Master Bond Fund in an
amount | 13 |
| necessary to
satisfy the Required Fund Building Receipts Amount | 14 |
| prior to expending Fund
Building Receipts
for any other | 15 |
| purpose. The Required Fund Building Receipts Amount shall be | 16 |
| that
amount
necessary to ensure the marketability of the Bonds, | 17 |
| which shall be specified in
the Bond Sale
Order executed by the | 18 |
| Director in connection with the issuance of the Bonds.
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| J. Holders of the Bonds shall have a first and priority | 20 |
| claim on all
Fund Building
Receipts in the Master Bond Fund in | 21 |
| parity with all other holders of the Bonds,
provided that
such | 22 |
| claim may be subordinated to the provider of any Credit | 23 |
| Agreement for any
of the Bonds.
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| K. To the extent that Fund Building Receipts in
the Master
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| Bond Fund are not otherwise needed to satisfy the requirements | 26 |
| of this Act and
the instruments
authorizing the issuance of the | 27 |
| Bonds, such monies shall be used by the
Department, in such
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| amounts as determined by the Director to do any one or a | 29 |
| combination
either or both of the following:
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| 1. To purchase, refinance, redeem, refund, advance | 31 |
| refund or defease (or
any
combination of the foregoing) | 32 |
| outstanding Bonds, to the extent such action is
legally
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| available and does not impair the tax exempt status of any | 34 |
| of the Bonds which
are, in fact,
exempt from Federal income | 35 |
| taxation; or
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| 2. As a deposit in the State's account in the |
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| Unemployment Trust Fund
of the
United States Treasury ; or | 2 |
| 3. As a deposit into the Special Programs Fund provided | 3 |
| for under Section 2107 of the Unemployment Insurance Act .
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| L. The Director shall determine the method of sale, type of | 5 |
| bond, bond
form,
redemption provisions and other terms of the | 6 |
| Bonds that, in the Director's
judgment, best achieve
the | 7 |
| purposes of this Act and effect the borrowing at the lowest | 8 |
| practicable
cost, provided that
those determinations are not | 9 |
| inconsistent with this Act or other applicable
legal | 10 |
| requirements.
Those determinations shall be set forth in a | 11 |
| document entitled "Bond Sale
Order"
acceptable, in
form and | 12 |
| substance, to the attorney or attorneys acting as bond counsel | 13 |
| for the
Bonds in
connection with the rendering of opinions | 14 |
| necessary for the issuance of the
Bonds and executed
by the | 15 |
| Director.
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| (Source: P.A. 93-634, eff. 1-1-04.) | 17 |
| Section 10. The Unemployment Insurance Act is amended by | 18 |
| changing Sections 2100 and 2101 and by adding Sections 2101.1 | 19 |
| and 2107 as follows: | 20 |
| (820 ILCS 405/2100) (from Ch. 48, par. 660)
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| Sec. 2100. Handling of funds - Bond - Accounts.
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| A. All contributions
and payments in lieu of contributions | 23 |
| collected under this Act, including but
not limited to fund | 24 |
| building receipts, together
with any interest thereon; all | 25 |
| penalties collected pursuant to this Act; any
property or | 26 |
| securities acquired through the use thereof; all moneys | 27 |
| advanced
to this State's account in the unemployment trust fund | 28 |
| pursuant to the
provisions
of Title XII of the Social Security | 29 |
| Act, as amended; all moneys directed for
transfer from the | 30 |
| Master Bond Fund to this State's account in the unemployment
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| trust fund;
all moneys received
from the Federal government as | 32 |
| reimbursements pursuant to Section 204 of
the Federal-State | 33 |
| Extended Unemployment Compensation Act of 1970, as amended;
all | 34 |
| moneys credited to this State's account in the unemployment |
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| trust fund
pursuant to Section 903 of the Federal Social | 2 |
| Security Act, as amended;
and all earnings of such property or | 3 |
| securities and any interest earned
upon any such moneys shall | 4 |
| be paid or turned over to and held by the Director,
as | 5 |
| ex-officio custodian of
the clearing account, the unemployment | 6 |
| trust fund account and the benefit
account, and by the State | 7 |
| Treasurer, as ex-officio custodian of the special
| 8 |
| administrative account, separate
and apart from all public | 9 |
| moneys or funds of this State, as hereinafter
provided. Such | 10 |
| moneys shall be administered by the Director exclusively
for | 11 |
| the purposes of this Act.
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| No such moneys shall be paid or expended except upon the | 13 |
| direction of the
Director in accordance with such regulations | 14 |
| as he shall prescribe pursuant
to the provisions of this Act.
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| The State Treasurer shall be liable on his general official | 16 |
| bond for the
faithful performance of his duties in connection | 17 |
| with the moneys in the
special administrative account provided | 18 |
| for under
this Act. Such liability on his official bond shall | 19 |
| exist in addition to
the liability upon any separate bond given | 20 |
| by him. All sums recovered for
losses sustained by the account | 21 |
| shall be
deposited in that account.
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| The Director shall be liable on his general official bond | 23 |
| for the faithful
performance of his duties in connection with | 24 |
| the moneys in the clearing
account, the benefit account and | 25 |
| unemployment trust fund account provided
for under this Act. | 26 |
| Such liability on his official bond shall exist in
addition to | 27 |
| the liability upon any separate bond given by him. All sums
| 28 |
| recovered for losses sustained by any one of the accounts shall | 29 |
| be deposited
in the account that sustained such loss.
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| The Treasurer shall maintain for such moneys a special
| 31 |
| administrative account. The Director shall
maintain for such | 32 |
| moneys 3 separate accounts: a clearing account,
a benefit | 33 |
| account and an unemployment trust fund account. All moneys | 34 |
| payable
under this Act (except moneys requisitioned from this | 35 |
| State's account in
the unemployment trust fund and deposited in | 36 |
| the benefit account and moneys directed for deposit into the |
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| Special Programs Fund provided for under Section 2107 ), | 2 |
| including
but not limited to moneys directed for transfer from | 3 |
| the Master
Bond Fund to this State's account in the | 4 |
| unemployment trust fund,
upon
receipt thereof by the Director, | 5 |
| shall be immediately deposited in the
clearing account;
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| provided, however, that, except as is otherwise provided in | 7 |
| this Section,
interest and penalties shall not be deemed a part | 8 |
| of the clearing account
but shall be transferred immediately | 9 |
| upon clearance thereof to the special
administrative account.
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| After clearance thereof, all other moneys in the clearing | 11 |
| account shall
be immediately deposited by the Director with the
| 12 |
| Secretary of the Treasury of the United States of America to | 13 |
| the credit
of the account of this State in the unemployment | 14 |
| trust fund, established
and maintained pursuant to the Federal | 15 |
| Social Security Act, as amended,
except fund building receipts, | 16 |
| which shall be deposited into the Master Bond
Fund.
The benefit | 17 |
| account shall consist of all moneys requisitioned from this
| 18 |
| State's account in the unemployment trust fund. The moneys in | 19 |
| the benefit
account shall be expended in accordance with | 20 |
| regulations prescribed by the
Director and solely for the | 21 |
| payment of benefits, refunds of contributions,
interest and | 22 |
| penalties under the provisions of the Act, the payment of
| 23 |
| health insurance in accordance with Section 410 of this Act, | 24 |
| and the transfer
or payment of funds to any Federal or State | 25 |
| agency pursuant to reciprocal
arrangements entered into by the | 26 |
| Director under the provisions of Section
2700E, except that | 27 |
| moneys credited to this State's account in the unemployment
| 28 |
| trust fund pursuant to Section 903 of the Federal Social | 29 |
| Security Act, as
amended, shall be used exclusively as provided | 30 |
| in subsection B. For purposes
of this Section only, to the | 31 |
| extent allowed by applicable legal
requirements, the
payment of | 32 |
| benefits includes but is not limited to the payment of | 33 |
| principal on
any bonds issued
pursuant to the Illinois | 34 |
| Unemployment Insurance Trust Fund Financing Act,
exclusive of | 35 |
| any
interest or administrative expenses in connection with the | 36 |
| bonds. The
Director
shall, from time to time, requisition from |
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| the unemployment trust fund such
amounts, not exceeding the | 2 |
| amounts standing to the State's account therein,
as he deems | 3 |
| necessary solely for the payment of such benefits, refunds,
and | 4 |
| funds, for a reasonable future period. The Director, as | 5 |
| ex-officio
custodian of the benefit account, which shall be | 6 |
| kept separate and apart
from all other public moneys, shall | 7 |
| issue his checks for the payment of
such benefits, refunds, | 8 |
| health insurance and funds solely from the moneys so
received
| 9 |
| into the benefit account. However, after January 1, 1987, no | 10 |
| check shall
be drawn on such benefit account unless at the time | 11 |
| of drawing there is
sufficient money in the account to pay the | 12 |
| check. The Director shall
retain in the clearing account
an | 13 |
| amount of interest and
penalties equal to the amount of
| 14 |
| interest and penalties to be refunded from the benefit account. | 15 |
| After
clearance thereof, the amount so retained shall be | 16 |
| immediately deposited
by the Director, as are all other moneys | 17 |
| in the clearing account,
with the Secretary of the Treasury of | 18 |
| the United States. If, at any
time, an insufficient amount of | 19 |
| interest and penalties is available for
retention in the | 20 |
| clearing account, no refund of interest or penalties
shall be | 21 |
| made from the benefit account until a sufficient amount is
| 22 |
| available for retention and is so retained, or until the State
| 23 |
| Treasurer, upon the direction of the Director, transfers to the | 24 |
| Director
a sufficient amount from the special administrative | 25 |
| account, for
immediate deposit in the benefit account.
| 26 |
| Any balance of moneys requisitioned from the unemployment | 27 |
| trust fund
which remains unclaimed or unpaid in the benefit | 28 |
| account
after the expiration of the period for which such sums | 29 |
| were
requisitioned
shall either be deducted from estimates of | 30 |
| and may be utilized for authorized
expenditures during | 31 |
| succeeding periods, or, in the discretion of the
Director, | 32 |
| shall be redeposited with the Secretary of the Treasury of the
| 33 |
| United States to the credit of the State's account in the | 34 |
| unemployment
trust fund.
| 35 |
| Moneys in the clearing, benefit and special administrative | 36 |
| accounts
shall not be commingled with other State funds but |
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| they shall be
deposited as required by law and maintained in | 2 |
| separate accounts on the
books of a savings and loan | 3 |
| association or bank.
| 4 |
| No bank or savings and loan association shall receive | 5 |
| public funds as
permitted by this Section, unless it has | 6 |
| complied with the requirements
established pursuant to Section | 7 |
| 6 of "An Act relating to certain investments
of public funds by | 8 |
| public agencies", approved July 23, 1943, as now or
hereafter
| 9 |
| amended.
| 10 |
| B. Moneys credited to the account of this State in the | 11 |
| unemployment
trust fund by the Secretary of the Treasury of the | 12 |
| United States
pursuant to Section 903 of the Social Security | 13 |
| Act may be
requisitioned from this State's account and used as | 14 |
| authorized by
Section 903. Any interest required to be paid on | 15 |
| advances
under Title XII of the Social Security Act shall be | 16 |
| paid in a timely manner
and shall not be paid, directly or | 17 |
| indirectly, by an equivalent reduction
in contributions or | 18 |
| payments in lieu of contributions from amounts in this
State's | 19 |
| account in the unemployment trust fund. Such moneys may be
| 20 |
| requisitioned and used for the payment of expenses incurred for | 21 |
| the
administration of this Act, but only pursuant to a specific
| 22 |
| appropriation by the General Assembly and only if the expenses | 23 |
| are
incurred and the moneys are requisitioned after the | 24 |
| enactment of an
appropriation law which:
| 25 |
| 1. Specifies the purpose or purposes for which such | 26 |
| moneys are
appropriated and the amount or amounts | 27 |
| appropriated therefor;
| 28 |
| 2. Limits the period within which such moneys may be | 29 |
| obligated to a
period ending not more than 2 years after | 30 |
| the date of the enactment of
the appropriation law; and
| 31 |
| 3. Limits the amount which may be obligated during any | 32 |
| fiscal year
to an amount which does not exceed the amount | 33 |
| by which (a) the aggregate
of the amounts transferred to | 34 |
| the account of this State
pursuant to Section
903 of the | 35 |
| Social Security Act exceeds (b) the aggregate of the | 36 |
| amounts used
by this State pursuant to
this Act and charged |
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| against the amounts transferred to the account of this
| 2 |
| State.
| 3 |
| For purposes of paragraph (3) above, amounts obligated for
| 4 |
| administrative purposes pursuant to an appropriation shall be | 5 |
| chargeable
against transferred amounts at the exact time the | 6 |
| obligation is entered
into. The appropriation, obligation, and | 7 |
| expenditure or other disposition
of money appropriated under | 8 |
| this subsection shall be accounted for in
accordance with | 9 |
| standards established by the United States Secretary of Labor.
| 10 |
| Moneys appropriated as provided herein for the payment of | 11 |
| expenses of
administration shall be requisitioned by the | 12 |
| Director as needed for the
payment of obligations incurred | 13 |
| under such appropriation. Upon
requisition,
such moneys shall | 14 |
| be deposited with the State Treasurer, who shall hold
such | 15 |
| moneys, as ex-officio custodian thereof, in accordance with the
| 16 |
| requirements of Section 2103 and, upon the direction of the | 17 |
| Director,
shall make payments therefrom pursuant to such | 18 |
| appropriation. Moneys so
deposited shall, until expended, | 19 |
| remain a part of the unemployment trust
fund and, if any will | 20 |
| not be expended, shall be returned promptly to the
account of | 21 |
| this State in the unemployment trust fund.
| 22 |
| C. The Governor is authorized to apply to the United States
| 23 |
| Secretary of Labor for an advance or advances to this State's | 24 |
| account in
the unemployment trust fund pursuant to the | 25 |
| conditions set forth in
Title XII of the Federal Social | 26 |
| Security Act, as amended. The amount of
any such advance may be | 27 |
| repaid from this State's account in the
unemployment trust | 28 |
| fund. | 29 |
| D. The Director shall annually on or before the first day | 30 |
| of March report in writing to the Employment Security Advisory | 31 |
| Board concerning the deposits into and expenditures from this | 32 |
| State's account in the Unemployment Trust Fund.
| 33 |
| (Source: P.A. 93-634, eff. 1-1-04.)
| 34 |
| (820 ILCS 405/2101) (from Ch. 48, par. 661)
| 35 |
| Sec. 2101. Special administrative account. Except as |
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| provided in Section 2100, all interest and penalties collected
| 2 |
| pursuant to this Act shall be deposited in the special | 3 |
| administrative
account. The amount in this account in excess of | 4 |
| $100,000 on the close of
business of the last day of each | 5 |
| calendar quarter shall be immediately
transferred to this | 6 |
| State's account in the unemployment trust fund. However, | 7 |
| subject to Section 2101.1,
such funds shall not be transferred | 8 |
| where it is determined by the Director
that it is necessary to | 9 |
| accumulate funds in the account in order to have
sufficient | 10 |
| funds to pay interest that may become due under the terms of
| 11 |
| Section 1202 (b) of the Federal Social Security Act, as | 12 |
| amended, upon advances
made to the Illinois Unemployment | 13 |
| Insurance Trust Fund under Title XII of
the Federal Social | 14 |
| Security Act or where it is determined by the Director
that it | 15 |
| is necessary to accumulate funds in the special administrative
| 16 |
| account in order to have sufficient funds to expend for any | 17 |
| other purpose
authorized by this Section. The moneys available | 18 |
| in the special
administrative account shall be expended upon | 19 |
| the direction of the Director
whenever it appears to him that | 20 |
| such expenditure is necessary for:
| 21 |
| A. 1. The proper administration of this Act and no Federal | 22 |
| funds are
available for the specific purpose for which such | 23 |
| expenditure is to be
made, provided the moneys are not | 24 |
| substituted for appropriations from
Federal funds, which in the | 25 |
| absence of such moneys would be available and
provided the | 26 |
| monies are appropriated by the General Assembly.
| 27 |
| 2. The proper administration of this Act for which purpose
| 28 |
| appropriations from Federal funds have been requested but not | 29 |
| yet received,
provided the special administrative account will | 30 |
| be reimbursed upon receipt
of the requested Federal | 31 |
| appropriation.
| 32 |
| B. To the extent possible, the repayment to the fund | 33 |
| established for
financing the cost of administration of this | 34 |
| Act of moneys found by the
Secretary of Labor of the United | 35 |
| States of America, or other appropriate
Federal agency, to have | 36 |
| been lost or expended for purposes other than, or
in amounts in |
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| excess of, those found necessary by the Secretary of Labor,
or | 2 |
| other appropriate Federal agency, for the administration of | 3 |
| this Act.
| 4 |
| C. The payment of refunds or adjustments of interest or | 5 |
| penalties, paid
pursuant to Sections 901 or 2201.
| 6 |
| D. The payment of interest on refunds of erroneously paid
| 7 |
| contributions, penalties and interest pursuant to Section | 8 |
| 2201.1.
| 9 |
| E. The payment or transfer of interest or penalties to any | 10 |
| Federal or
State agency, pursuant to reciprocal arrangements | 11 |
| entered into by the
Director under the provisions of Section | 12 |
| 2700E.
| 13 |
| F. The payment of any costs incurred, pursuant to Section | 14 |
| 1700.1.
| 15 |
| G. Beginning January 1, 1989, for the payment for the legal | 16 |
| services
authorized by subsection B of Section 802, up to | 17 |
| $1,000,000 per year for
the representation of the individual | 18 |
| claimants and up to $1,000,000 per
year for the representation | 19 |
| of "small employers".
| 20 |
| H. The payment of any fees for collecting past due | 21 |
| contributions,
payments in lieu of contributions, penalties, | 22 |
| and interest shall be paid
(without an appropriation) from | 23 |
| interest and penalty monies received from
collection agents | 24 |
| that have contracted with the Department under Section
2206 to | 25 |
| collect such amounts, provided however, that the amount of such
| 26 |
| payment shall not exceed the amount of past due interest and | 27 |
| penalty collected.
| 28 |
| I. The payment of interest that may become due under the | 29 |
| terms of Section
1202 (b) of the Federal Social Security Act, | 30 |
| as amended, for advances made
to the Illinois Unemployment | 31 |
| Insurance Trust Fund.
| 32 |
| The Director shall annually on or before the first day of | 33 |
| March report
in writing to the Employment Security Advisory | 34 |
| Board concerning the
expenditures made from the special | 35 |
| administrative account and the purposes
for which funds are | 36 |
| being accumulated.
|
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| If Federal legislation is enacted which will permit the use | 2 |
| by the
Director of some part of the contributions collected or | 3 |
| to be collected
under this Act, for the financing of | 4 |
| expenditures incurred in the proper
administration of this Act, | 5 |
| then, upon the availability of such
contributions for such | 6 |
| purpose, the provisions of this Section shall be
inoperative | 7 |
| and interest and penalties collected pursuant to this Act shall
| 8 |
| be deposited in and be deemed a part of the clearing account. | 9 |
| In the event
of the enactment of the foregoing Federal | 10 |
| legislation, and within 90 days
after the date upon which | 11 |
| contributions become available for expenditure
for costs of | 12 |
| administration, the total amount in the special administrative
| 13 |
| account shall be transferred to the clearing account, and after | 14 |
| clearance
thereof shall be deposited with the Secretary of the | 15 |
| Treasury of the United
States of America to the credit of the | 16 |
| account of this State in the
unemployment trust fund, | 17 |
| established and maintained pursuant to the Federal
Social | 18 |
| Security Act, as amended.
| 19 |
| (Source: P.A. 85-956; 85-1009.)
| 20 |
| (820 ILCS 405/2101.1 new)
| 21 |
| Sec. 2101.1. Mandatory transfers. Notwithstanding any | 22 |
| other provision in Section 2101 to the contrary, no later than | 23 |
| June 30, 2007, an amount equal to at least $1,400,136 but not | 24 |
| to exceed $7,000,136 shall be transferred from the special | 25 |
| administrative account to this State's account in the | 26 |
| Unemployment Trust Fund. No later than June 30, 2008, and June | 27 |
| 30 of each of the three immediately succeeding calendar years, | 28 |
| there shall be transferred from the special administrative | 29 |
| account to this State's account in the Unemployment Trust Fund | 30 |
| an amount at least equal to the lesser of $1,400,000 or the | 31 |
| unpaid principal. For purposes of this Section, the unpaid | 32 |
| principal is the difference between $7,000,136 and the sum of | 33 |
| amounts, excluding interest, previously transferred pursuant | 34 |
| to this Section. In addition to the amounts otherwise specified | 35 |
| in this Section, each transfer shall include a payment of any |
|
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| interest accrued pursuant to this Section through the end of | 2 |
| the immediately preceding calendar quarter for which the | 3 |
| federal Department of the Treasury has published the yield for | 4 |
| state accounts in the Unemployment Trust Fund. Interest | 5 |
| pursuant to this Section shall accrue daily beginning on | 6 |
| January 1, 2007, and be calculated on the basis of the unpaid | 7 |
| principal as of the beginning of the day. The rate at which the | 8 |
| interest shall accrue for each calendar day within a calendar | 9 |
| quarter shall equal the quotient obtained by dividing the yield | 10 |
| for that quarter for state accounts in the Unemployment Trust | 11 |
| Fund as published by the federal Department of the Treasury by | 12 |
| the total number of calendar days within that quarter. Interest | 13 |
| accrued but not yet due at the time the unpaid principal is | 14 |
| paid in full shall be transferred within 30 days after the | 15 |
| federal Department of the Treasury has published the yield for | 16 |
| state accounts in the Unemployment Trust Fund for all quarters | 17 |
| for which interest has accrued pursuant to this Section but not | 18 |
| yet been paid. A transfer required pursuant to this Section in | 19 |
| a fiscal year of this State shall occur before any transfer | 20 |
| made with respect to that same fiscal year from the special | 21 |
| administrative account to the Title III Social Security and | 22 |
| Employment Fund.
| 23 |
| (820 ILCS 405/2107 new) | 24 |
| Sec. 2107. Special Programs Fund. The Special Programs Fund | 25 |
| shall be held separate and apart from all public moneys or | 26 |
| funds of this State. All moneys that may be received by the | 27 |
| State for the payment of trade readjustment allowances or | 28 |
| alternative trade adjustment assistance for older workers | 29 |
| under the Trade Act of 1974, as amended, or disaster | 30 |
| unemployment assistance under the Robert T. Stafford Disaster | 31 |
| Relief and Emergency Assistance Act, as amended, or for the | 32 |
| payment of any other benefits where the Department will pay the | 33 |
| benefits as an agent of the United States Department of Labor | 34 |
| or its successor agency pursuant to federal law (except | 35 |
| benefits payable through the State's account in the federal |
|
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| Unemployment Trust Fund established and maintained pursuant to | 2 |
| the federal Social Security Act, as amended), shall be | 3 |
| deposited into the Special Programs Fund, together with any | 4 |
| moneys that may otherwise be directed for deposit into that | 5 |
| Fund. No such moneys shall be paid or expended except upon the | 6 |
| direction of the Director who, as ex officio custodian of the | 7 |
| Special Programs Fund, shall expend such moneys only in | 8 |
| accordance with the directions of the United States Department | 9 |
| of Labor or its successor agency, as an agent of the United | 10 |
| States Department of Labor or its successor agency. Moneys in | 11 |
| the Special Programs Fund shall not be commingled with other | 12 |
| State funds, but they shall be deposited as required by law and | 13 |
| maintained in a separate account on the books of a savings and | 14 |
| loan association, bank, or other qualified financial | 15 |
| institution. All interest earnings on amounts within the | 16 |
| Special Programs Fund shall accrue to the Special Programs | 17 |
| Fund. The Director shall be liable on her or his general | 18 |
| official bond for the faithful performance of her or his duties | 19 |
| in connection with the moneys in the Special Programs Fund. | 20 |
| Such liability on her or his official bond shall exist in | 21 |
| addition to the liability upon any separate bond given by her | 22 |
| or him. All sums recovered for losses sustained by the Special | 23 |
| Programs Fund shall be deposited into the Fund. | 24 |
| This amendatory Act of the 94th General Assembly is not | 25 |
| intended to alter processes or requirements with respect to the | 26 |
| Special Programs Fund from those in existence immediately prior | 27 |
| to the effective date of this amendatory Act of the 94th | 28 |
| General Assembly. | 29 |
| Section 99. Effective date. This Act takes effect upon | 30 |
| becoming law.
|
|