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91_HB0900
LRB9101255JSpc
1 AN ACT concerning school construction, amending named
2 Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The General Obligation Bond Act is amended by
6 changing Sections 2 and 5 as follows:
7 (30 ILCS 330/2) (from Ch. 127, par. 652)
8 Sec. 2. Authorization for Bonds. The State of Illinois
9 is authorized to issue, sell and provide for the retirement
10 of General Obligation Bonds of the State of Illinois in the
11 total amount of $10,895,296,392 plus the amount authorized
12 under subsection (f) of Section 5, herein called "Bonds".
13 Of the total amount of bonds authorized above, up to
14 $2,200,000,000 in aggregate original principal amount may be
15 issued and sold in accordance with the Baccalaureate Savings
16 Act in the form of General Obligation College Savings Bonds.
17 Of the total amount of bonds authorized above, up to
18 $300,000,000 in aggregate original principal amount may be
19 issued and sold in accordance with the Retirement Savings Act
20 in the form of General Obligation Retirement Savings Bonds.
21 The issuance and sale of Bonds pursuant to the General
22 Obligation Bond Act is an economical and efficient method of
23 financing the capital needs of the State. This Act will
24 permit the issuance of a multi-purpose General Obligation
25 Bond with uniform terms and features. This will not only
26 lower the cost of registration but also reduce the overall
27 cost of issuing debt by improving the marketability of
28 Illinois General Obligation Bonds.
29 Bonds shall be issued for the categories and specific
30 purposes expressed in Sections 2 through 8 and Section 16 of
31 this Act.
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1 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549,
2 eff. 12-8-97; 90-586, eff. 6-4-98.)
3 (30 ILCS 330/5) (from Ch. 127, par. 655)
4 Sec. 5. School Construction.
5 (a) The amount of $58,450,000 is authorized to make
6 grants to local school districts for the acquisition,
7 development, construction, reconstruction, rehabilitation,
8 improvement, financing, architectural planning and
9 installation of capital facilities, including but not limited
10 to those required for special education building projects
11 provided for in Article 14 of The School Code, consisting of
12 buildings, structures, and durable equipment, and for the
13 acquisition and improvement of real property and interests in
14 real property required, or expected to be required, in
15 connection therewith.
16 (b) $22,550,000, or so much thereof as may be necessary,
17 for grants to school districts for the making of principal
18 and interest payments, required to be made, on bonds issued
19 by such school districts after January 1, 1969, pursuant to
20 any indenture, ordinance, resolution, agreement or contract
21 to provide funds for the acquisition, development,
22 construction, reconstruction, rehabilitation, improvement,
23 architectural planning and installation of capital facilities
24 consisting of buildings, structures, durable equipment and
25 land for educational purposes or for lease payments required
26 to be made by a school district for principal and interest
27 payments on bonds issued by a Public Building Commission
28 after January 1, 1969.
29 (c) $10,000,000 for grants to school districts for the
30 acquisition, development, construction, reconstruction,
31 rehabilitation, improvement, architectural planning and
32 installation of capital facilities consisting of buildings
33 structures, durable equipment and land for special education
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1 building projects.
2 (d) $9,000,000 for grants to school districts for the
3 reconstruction, rehabilitation, improvement, financing and
4 architectural planning of capital facilities, including
5 construction at another location to replace such capital
6 facilities, consisting of those public school buildings and
7 temporary school facilities which, prior to January 1, 1984,
8 were condemned by the regional superintendent under Section
9 3-14.22 of The School Code or by any State official having
10 jurisdiction over building safety.
11 (e) $1,100,000,000 for grants to school districts for
12 school improvement projects authorized by the School
13 Construction Law. The bonds shall be sold in amounts not to
14 exceed the following schedule, except any bonds not sold
15 during one year shall be added to the bonds to be sold during
16 the remainder of the schedule:
17 First year...................................$200,000,000
18 Second year..................................$250,000,000
19 Third year...................................$250,000,000
20 Fourth year..................................$200,000,000
21 Fifth year...................................$200,000,000
22 (f) $120,000,000 in fiscal year 2000 and each fiscal
23 year thereafter for grants to school districts for school
24 improvement projects authorized by the School Construction
25 Law.
26 (Source: P.A. 90-549, eff. 12-8-97.)
27 Section 10. The Illinois Insurance Code is amended by
28 changing Section 409 as follows:
29 (215 ILCS 5/409) (from Ch. 73, par. 1021)
30 Sec. 409. Annual privilege tax payable by companies.
31 (1) As of January 1, 1999 for all health maintenance
32 organization premiums written; as of July 1, 1998 for all
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1 premiums written as accident and health business, voluntary
2 health service plan business, dental service plan business,
3 or limited health service organization business; and as of
4 January 1, 1998 for all other types of insurance premiums
5 written, every company doing any form of insurance business
6 in this State, including, but not limited to, every risk
7 retention group, and excluding all fraternal benefit
8 societies, all farm mutual companies, all religious
9 charitable risk pooling trusts, and excluding all statutory
10 residual market and special purpose entities in which
11 companies are statutorily required to participate, whether
12 incorporated or otherwise, shall pay, for the privilege of
13 doing business in this State, to the Director for the State
14 treasury a State tax equal to 0.5% of the net taxable premium
15 written, together with any amounts due under Section 444 of
16 this Code, except that the tax to be paid on any premium
17 derived from any accident and health insurance or on any
18 insurance business written by any company operating as a
19 health maintenance organization, voluntary health service
20 plan, dental service plan, or limited health service
21 organization shall be equal to 0.4% of such net taxable
22 premium written, together with any amounts due under Section
23 444. Upon the failure of any company to pay any such tax
24 due, the Director may, by order, revoke or suspend the
25 company's certificate of authority after giving 20 days
26 written notice to the company, or commence proceedings for
27 the suspension of business in this State under the procedures
28 set forth by Section 401.1 of this Code. The gross taxable
29 premium written shall be the gross amount of premiums
30 received on direct business during the calendar year on
31 contracts covering risks in this State, except premiums on
32 annuities, premiums on which State premium taxes are
33 prohibited by federal law, premiums paid by the State for
34 health care coverage for Medicaid eligible insureds as
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1 described in Section 5-2 of the Illinois Public Aid Code,
2 premiums paid for health care services included as an element
3 of tuition charges at any university or college owned and
4 operated by the State of Illinois, premiums on group
5 insurance contracts under the State Employees Group Insurance
6 Act of 1971, and except premiums for deferred compensation
7 plans for employees of the State, units of local government,
8 or school districts. The net taxable premium shall be the
9 gross taxable premium written reduced only by the following:
10 (a) the amount of premiums returned thereon which
11 shall be limited to premiums returned during the same
12 preceding calendar year and shall not include the return
13 of cash surrender values or death benefits on life
14 policies including annuities;
15 (b) dividends on such direct business that have
16 been paid in cash, applied in reduction of premiums or
17 left to accumulate to the credit of policyholders or
18 annuitants. In the case of life insurance, no deduction
19 shall be made for the payment of deferred dividends paid
20 in cash to policyholders on maturing policies; dividends
21 left to accumulate to the credit of policyholders or
22 annuitants shall be included as gross taxable premium
23 written when such dividend accumulations are applied to
24 purchase paid-up insurance or to shorten the endowment or
25 premium paying period.
26 (2) The annual privilege tax payment due from a company
27 under subsection (4) of this Section may be reduced by: (a)
28 the excess amount, if any, by which the aggregate income
29 taxes paid by the company, on a cash basis, for the preceding
30 calendar year under subsections (a) through (d) of Section
31 201 of the Illinois Income Tax Act exceed 1.5% of the
32 company's net taxable premium written for that prior calendar
33 year, as determined under subsection (1) of this Section; and
34 (b) the amount of any fire department taxes paid by the
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1 company during the preceding calendar year under Section
2 11-10-1 of the Illinois Municipal Code. Any deductible
3 amount or offset allowed under items (a) and (b) of this
4 subsection for any calendar year will not be allowed as a
5 deduction or offset against the company's privilege tax
6 liability for any other taxing period or calendar year.
7 (3) If a company survives or was formed by a merger,
8 consolidation, reorganization, or reincorporation, the
9 premiums received and amounts returned or paid by all
10 companies party to the merger, consolidation, reorganization,
11 or reincorporation shall, for purposes of determining the
12 amount of the tax imposed by this Section, be regarded as
13 received, returned, or paid by the surviving or new company.
14 (4)(a) All companies subject to the provisions of this
15 Section shall make an annual return for the preceding
16 calendar year on or before March 15 setting forth such
17 information on such forms as the Director may reasonably
18 require. Payments of quarterly installments of the
19 taxpayer's total estimated tax for the current calendar year
20 shall be due on or before April 15, June 15, September 15,
21 and December 15 of such year, except that all companies
22 transacting insurance in this State whose annual tax for the
23 immediately preceding calendar year was less than $5,000
24 shall make only an annual return. Failure of a company to
25 make the annual payment, or to make the quarterly payments,
26 if required, of at least 25% of either (i) the total tax paid
27 during the previous calendar year or (ii) 80% of the actual
28 tax for the current calendar year shall subject it to the
29 penalty provisions set forth in Section 412 of this Code.
30 (b) Notwithstanding the foregoing provisions, no annual
31 return shall be required or made on March 15, 1998, under
32 this subsection. For the calendar year 1998:
33 (i) each health maintenance organization shall have
34 no estimated tax installments;
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1 (ii) all companies subject to the tax as of July 1,
2 1998 as set forth in subsection (1) shall have estimated
3 tax installments due on September 15 and December 15 of
4 1998 which installments shall each amount to no less than
5 one-half of 80% of the actual tax on its net taxable
6 premium written during the period July 1, 1998, through
7 December 31, 1998; and
8 (iii) all other companies shall have estimated tax
9 installments due on June 15, September 15, and December
10 15 of 1998 which installments shall each amount to no
11 less than one-third of 80% of the actual tax on its net
12 taxable premium written during the calendar year 1998.
13 In the year 1999 and thereafter all companies shall make
14 annual and quarterly installments of their estimated tax as
15 provided by paragraph (a) of this subsection.
16 (5) In addition to the authority specifically granted
17 under Article XXV of this Code, the Director shall have such
18 authority to adopt rules and establish forms as may be
19 reasonably necessary for purposes of determining the
20 allocation of Illinois corporate income taxes paid under
21 subsections (a) through (d) of Section 201 of the Illinois
22 Income Tax Act amongst members of a business group that files
23 an Illinois corporate income tax return on a unitary basis,
24 for purposes of regulating the amendment of tax returns, for
25 purposes of defining terms, and for purposes of enforcing the
26 provisions of Article XXV of this Code. The Director shall
27 also have authority to defer, waive, or abate the tax imposed
28 by this Section if in his opinion the company's solvency and
29 ability to meet its insured obligations would be immediately
30 threatened by payment of the tax due.
31 (6) The moneys received under this Section shall be used
32 to pay the principal and interest payments on the bonds
33 issued pursuant to subsection (f) of Section 5 of the General
34 Obligation Bond Act.
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1 (Source: P.A. 90-583, eff. 5-29-98.)
2 Section 99. Effective date. This Act takes effect July
3 1, 1999.