[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
91_SB0146enr SB146 Enrolled LRB9100650EGfg 1 AN ACT in relation to State bonds. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The General Obligation Bond Act is amended by 5 adding Section 1.5 and re-enacting Sections 2, 3, 16, and 20 6 as follows: 7 (30 ILCS 330/1.5 new) 8 Sec. 1.5. Re-enactment; findings; purpose; validation. 9 (a) The General Assembly finds and declares that: 10 (1) Article IV of Public Act 85-1135, effective 11 July 28, 1988, contained provisions amending or creating 12 Sections 2, 3, 16, and 20 of the General Obligation Bond 13 Act, Section 5.242 of the State Finance Act, and Section 14 4 of the Baccalaureate Savings Act, all of which pertain 15 to State general obligation bonds. These provisions (i) 16 increased the total authorization for State of Illinois 17 general obligation bonds and refunding bonds; (ii) 18 increased the limits on the amount of State general 19 obligation bond proceeds that may be used for various 20 purposes; and (iii) created the General Obligation Bond 21 Rebate Fund, authorized the transfer of money into that 22 Fund, and provided an irrevocable continuing 23 appropriation of amounts necessary to preserve the 24 tax-free status of interest earned by owners of State 25 general obligation bonds. Article IV also contained 26 other provisions. 27 (2) Section 8 of Article III of Public Act 85-1135, 28 effective September 1, 1988, contained provisions 29 amending Sections 2, 4, 11, and 13 of the Build Illinois 30 Bond Act. These provisions (i) increased the total 31 authorization for Build Illinois bonds; (ii) increased SB146 Enrolled -2- LRB9100650EGfg 1 the limits on the amount of Build Illinois bond proceeds 2 that may be used for public infrastructure purposes; and 3 (iii) amended the Build Illinois bond repayment 4 schedules. 5 (3) In addition, Public Act 85-1135 contained 6 provisions relating to tax reform and creating the Water 7 Pollution Control Revolving Fund loan program. 8 (4) On August 26, 1998, the Cook County Circuit 9 Court entered an order in the case of Oak Park Arms 10 Associates v. Whitley (No. 92 L 51045), in which it found 11 that Public Act 85-1135 violates the single subject 12 clause of the Illinois Constitution (Article IV, Section 13 8(d)). However, on December 7, 1998, the Circuit Court 14 granted Defendant's motion to reconsider and dismissed 15 the Plaintiff's Single Subject claim with prejudice. 16 Nevertheless, the Circuit Court did not vacate its August 17 26, 1998 order declaring P.A. 85-1135 to be in violation 18 of the Single Subject clause of the Illinois 19 Constitution. In addition, the Plaintiffs have appealed 20 the Circuit Court's dismissal of their Single Subject 21 claim. 22 (5) The integrity of the State's contracts and 23 bonds, the protection of bondholders, and the State's 24 continued ability to issue bonds and borrow money are of 25 the greatest importance for the continued health, safety, 26 and welfare of the people of this State. 27 (6) The programs and projects funded with the 28 proceeds of State general obligation bonds and Build 29 Illinois bonds affect many areas of vital concern to the 30 people of this State. The disruption of those programs 31 could constitute a grave threat to the continued health, 32 safety, and welfare of the people of this State. 33 (b) It is the purpose of this amendatory Act of 1999 to 34 prevent or minimize any problems relating to State bonds that SB146 Enrolled -3- LRB9100650EGfg 1 may result from challenges to the constitutional validity of 2 Public Act 85-1135, by (1) re-enacting the Sections relating 3 to State bonds that were included in Public Act 85-1135; (2) 4 validating all Build Illinois bonds, State general obligation 5 bonds, and refunding bonds issued pursuant to provisions 6 contained in Public Act 85-1135; (3) affirming the State's 7 obligations under those bonds and any contracts relating to 8 them; and (4) validating all actions taken in reliance on the 9 provisions contained in Public Act 85-1135 that relate to 10 those bonds or their proceeds. 11 (c) This amendatory Act of 1999 re-enacts Sections 2, 3, 12 16, and 20 of the General Obligation Bond Act, Section 5.242 13 of the State Finance Act, Sections 2, 4, 11, and 13 of the 14 Build Illinois Bond Act, and Section 4 of the Baccalaureate 15 Savings Act, as they have been amended. This re-enactment is 16 intended to remove any question as to the validity or content 17 of those Sections; it is not intended to supersede any other 18 Public Act that amends the text of a Section as set forth in 19 this amendatory Act. The material is shown as existing text 20 (i.e., without underscoring) because, as of the time this 21 amendatory Act of 1999 was prepared, the legal challenge to 22 P.A. 85-1135 under the Single Subject clause of the Illinois 23 Constitution was dismissed with prejudice. 24 (d) The re-enactment by this amendatory Act of 1999 of 25 certain Sections relating to State bonds that were enacted or 26 amended by Public Act 85-1135 is not intended, and shall not 27 be construed, to imply that P.A. 85-1135 is invalid or to 28 limit or impair any legal argument concerning whether those 29 provisions were substantially re-enacted by other Public 30 Acts. 31 (e) All Build Illinois bonds, State general obligation 32 bonds, and refunding bonds issued before the effective date 33 of this amendatory Act of 1999 in reliance on or pursuant to 34 the Sections re-enacted by this amendatory Act of 1999, as SB146 Enrolled -4- LRB9100650EGfg 1 set forth in Public Act 85-1135 or as subsequently amended, 2 are hereby validated. All obligations of the State arising 3 under or in connection with those bonds are hereby affirmed. 4 (f) All otherwise lawful actions taken before the 5 effective date of this amendatory Act of 1999 in reliance on 6 or pursuant to the Sections re-enacted by this amendatory Act 7 of 1999, as set forth in Public Act 85-1135 or as 8 subsequently amended, by any officer, employee, or agency of 9 State government or by any other person or entity, are hereby 10 validated. 11 (g) This amendatory Act of 1999 applies, without 12 limitation, to actions pending on or after the effective date 13 of this amendatory Act. 14 (30 ILCS 330/2) (from Ch. 127, par. 652) 15 Sec. 2. Authorization for Bonds. The State of Illinois 16 is authorized to issue, sell and provide for the retirement 17 of General Obligation Bonds of the State of Illinois in the 18 total amount of $10,895,296,392 herein called "Bonds". 19 Of the total amount of bonds authorized above, up to 20 $2,200,000,000 in aggregate original principal amount may be 21 issued and sold in accordance with the Baccalaureate Savings 22 Act in the form of General Obligation College Savings Bonds. 23 Of the total amount of bonds authorized above, up to 24 $300,000,000 in aggregate original principal amount may be 25 issued and sold in accordance with the Retirement Savings Act 26 in the form of General Obligation Retirement Savings Bonds. 27 The issuance and sale of Bonds pursuant to the General 28 Obligation Bond Act is an economical and efficient method of 29 financing the capital needs of the State. This Act will 30 permit the issuance of a multi-purpose General Obligation 31 Bond with uniform terms and features. This will not only 32 lower the cost of registration but also reduce the overall 33 cost of issuing debt by improving the marketability of SB146 Enrolled -5- LRB9100650EGfg 1 Illinois General Obligation Bonds. 2 Bonds shall be issued for the categories and specific 3 purposes expressed in Sections 2 through 8 and Section 16 of 4 this Act. 5 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549, 6 eff. 12-8-97; 90-586, eff. 6-4-98.) 7 (30 ILCS 330/3) (from Ch. 127, par. 653) 8 Sec. 3. Capital Facilities. The amount of $4,335,266,392 9 is authorized to be used for the acquisition, development, 10 construction, reconstruction, improvement, financing, 11 architectural planning and installation of capital facilities 12 within the State, consisting of buildings, structures, 13 durable equipment, land, and interests in land for the 14 following specific purposes: 15 (a) $1,189,517,246 for educational purposes by State 16 universities and colleges, the Illinois Community College 17 Board created by the Public Community College Act and for 18 grants to public community colleges as authorized by Sections 19 5-11 and 5-12 of the Public Community College Act; 20 (b) $1,126,370,168 for correctional purposes at State 21 prison and correctional centers; 22 (c) $379,711,786 for open spaces, recreational and 23 conservation purposes and the protection of land; 24 (d) $482,280,486 for child care facilities, mental and 25 public health facilities, and facilities for the care of 26 disabled veterans and their spouses; 27 (e) 895,189,341 for use by the State, its departments, 28 authorities, public corporations, commissions and agencies; 29 (f) $818,100 for cargo handling facilities at port 30 districts and for breakwaters, including harbor entrances, at 31 port districts in conjunction with facilities for small boats 32 and pleasure crafts; 33 (g) $147,267,796 for water resource management projects; SB146 Enrolled -6- LRB9100650EGfg 1 (h) $16,940,269 for the provision of facilities for food 2 production research and related instructional and public 3 service activities at the State universities and public 4 community colleges; 5 (i) $34,000,000 for grants by the Secretary of State, as 6 State Librarian, for central library facilities authorized by 7 Section 8 of the Illinois Library System Act and for grants 8 by the Capital Development Board to units of local government 9 for public library facilities; 10 (j) $25,000,000 for the acquisition, development, 11 construction, reconstruction, improvement, financing, 12 architectural planning and installation of capital facilities 13 consisting of buildings, structures, durable equipment and 14 land for grants to counties, municipalities or public 15 building commissions with correctional facilities that do not 16 comply with the minimum standards of the Department of 17 Corrections under Section 3-15-2 of the Unified Code of 18 Corrections; 19 (k) $5,000,000 for grants in fiscal year 1988 by the 20 Department of Conservation for improvement or expansion of 21 aquarium facilities located on property owned by a park 22 district; and 23 (l) $33,171,200 to State agencies for grants to local 24 governments for the acquisition, financing, architectural 25 planning, development, alteration, installation, and 26 construction of capital facilities consisting of buildings, 27 structures, durable equipment, and land. 28 The amounts authorized above for capital facilities may 29 be used for the acquisition, installation, alteration, 30 construction, or reconstruction of capital facilities and for 31 the purchase of equipment for the purpose of major capital 32 improvements which will reduce energy consumption in State 33 buildings or facilities. 34 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549, SB146 Enrolled -7- LRB9100650EGfg 1 eff. 12-8-97; 90-586, eff. 6-4-98.) 2 (30 ILCS 330/16) (from Ch. 127, par. 666) 3 Sec. 16. Refunding Bonds. The amount of $2,339,025,000 4 is authorized for the purpose of refunding any State of 5 Illinois general obligation Bonds then outstanding, including 6 the payment of any redemption premium thereon, any reasonable 7 expenses of such refunding, any interest accrued or to accrue 8 to the earliest or any subsequent date of redemption or 9 maturity of such outstanding Bonds and any interest to accrue 10 to the first interest payment on the refunding Bonds; 11 provided that such refunding Bonds shall mature no later than 12 the final maturity date of Bonds being refunded. 13 Refunding Bonds may be sold in such amounts and at such 14 times, as directed by the Governor, upon recommendation by 15 the Director of the Bureau of the Budget. The Governor shall 16 notify the State Treasurer and Comptroller of such refunding. 17 The proceeds received from the sale of refunding Bonds shall 18 be used for the retirement at maturity or redemption of such 19 outstanding Bonds on any maturity or redemption date and, 20 pending such use, shall be placed in escrow. Proceeds not 21 needed for deposit in an escrow account shall be deposited in 22 the General Obligation Bond Retirement and Interest Fund. 23 This Act shall constitute an irrevocable and continuing 24 appropriation of all amounts necessary to establish an escrow 25 account for the purpose of refunding outstanding general 26 obligation Bonds and to pay the reasonable expenses of such 27 refunding. Any such escrowed proceeds may be invested and 28 reinvested in direct obligations of the United States of 29 America, maturing at such time or times as shall be 30 appropriate to assure the prompt payment of the principal of 31 and interest and redemption premium, if any, on the refunded 32 Bonds. After the terms of the escrow have been fully 33 satisfied, any remaining balance of such proceeds and SB146 Enrolled -8- LRB9100650EGfg 1 interest, income and profits earned or realized on the 2 investments thereof shall be paid into the general revenue 3 fund. The liability of the State upon the Bonds shall 4 continue, provided that the holders thereof shall thereafter 5 be entitled to payment only out of the moneys deposited in 6 the escrow account. 7 Except as otherwise herein provided in this Section, such 8 refunding Bonds shall in all other respects be subject to the 9 terms and conditions of this Act. 10 (Source: P.A. 87-836; 87-873; 88-93; 88-552.) 11 (30 ILCS 330/20) (from Ch. 127, par. 669a) 12 Sec. 20. A separate fund in the State treasury called 13 the "General Obligation Bond Rebate Fund" is hereby created. 14 The State Treasurer is hereby authorized to create such 15 separate accounts within the General Obligation Bond Rebate 16 Fund from time to time in connection with the issuance of 17 Bonds pursuant to this Act and to transfer moneys to the 18 General Obligation Bond Rebate Fund from the Funds described 19 in subsection (a) of Section 19 of this Act at such times and 20 in such amounts as shall be deemed necessary to preserve the 21 exclusion of the interest earned by the owners of Bonds 22 issued under this Act from the federal gross income of such 23 owners. This Act shall constitute an irrevocable and 24 continuing appropriation of all amounts necessary for the 25 purpose described in this Section. 26 (Source: P.A. 85-1135.) 27 Section 10. The State Finance Act is amended by 28 re-enacting Section 5.242 as follows: 29 (30 ILCS 105/5.242) (from Ch. 127, par. 141.242) 30 Sec. 5.242. The General Obligation Bond Rebate Fund. 31 (Source: P.A. 85-1135.) SB146 Enrolled -9- LRB9100650EGfg 1 Section 15. The Build Illinois Bond Act is amended by 2 re-enacting Sections 2, 4, 11, and 13 as follows: 3 (30 ILCS 425/2) (from Ch. 127, par. 2802) 4 Sec. 2. Authorization for Bonds. The State of Illinois 5 is authorized to issue, sell and provide for the retirement 6 of limited obligation bonds, notes and other evidences of 7 indebtedness of the State of Illinois in the total principal 8 amount of $2,036,500,000 herein called "Bonds". Such 9 authorized amount of Bonds shall be reduced from time to time 10 by amounts, if any, which are equal to the moneys received by 11 the Department of Revenue in any fiscal year pursuant to 12 Section 3-1001 of the "Illinois Vehicle Code", as amended, in 13 excess of the Annual Specified Amount (as defined in Section 14 3 of the "Retailers' Occupation Tax Act", as amended) and 15 transferred at the end of such fiscal year from the General 16 Revenue Fund to the Build Illinois Purposes Fund as provided 17 in Section 3-1001 of said Code; provided, however, that no 18 such reduction shall affect the validity or enforceability of 19 any Bonds issued prior to such reduction. Such amount of 20 authorized Bonds shall be exclusive of any refunding Bonds 21 issued pursuant to Section 15 of this Act and exclusive of 22 any Bonds issued pursuant to this Section which are redeemed, 23 purchased, advance refunded, or defeased in accordance with 24 paragraph (f) of Section 4 of this Act. Bonds shall be 25 issued for the categories and specific purposes expressed in 26 Section 4 of this Act. 27 (Source: P.A. 86-44; 86-78; 86-1473.) 28 (30 ILCS 425/4) (from Ch. 127, par. 2804) 29 Sec. 4. Purposes of Bonds. Bonds shall be issued for the 30 following purposes and in the approximate amounts as set 31 forth below: 32 (a) $1,470,419,000 for the expenses of issuance and sale SB146 Enrolled -10- LRB9100650EGfg 1 of Bonds, including bond discounts, and for planning, 2 engineering, acquisition, construction, reconstruction, 3 development, improvement and extension of the public 4 infrastructure in the State of Illinois, including: the 5 making of loans or grants to local governments for waste 6 disposal systems, water and sewer line extensions and water 7 distribution and purification facilities, rail or air or 8 water port improvements, gas and electric utility extensions, 9 publicly owned industrial and commercial sites, buildings 10 used for public administration purposes and other public 11 infrastructure capital improvements; the making of loans or 12 grants to units of local government for financing and 13 construction of wastewater facilities; refinancing or 14 retiring bonds issued between January 1, 1987 and January 1, 15 1990 by home rule municipalities, debt service on which is 16 provided from a tax imposed by home rule municipalities prior 17 to January 1, 1990 on the sale of food and drugs pursuant to 18 Section 8-11-1 of the Home Rule Municipal Retailers' 19 Occupation Tax Act or Section 8-11-5 of the Home Rule 20 Municipal Service Occupation Tax Act; the making of deposits 21 not to exceed $70,000,000 in the aggregate into the Water 22 Pollution Control Revolving Fund to provide assistance in 23 accordance with the provisions of Title IV-A of the 24 Environmental Protection Act; the planning, engineering, 25 acquisition, construction, reconstruction, alteration, 26 expansion, extension and improvement of highways, bridges, 27 structures separating highways and railroads, rest areas, 28 interchanges, access roads to and from any State or local 29 highway and other transportation improvement projects which 30 are related to economic development activities; the making of 31 loans or grants for planning, engineering, rehabilitation, 32 improvement or construction of rail and transit facilities; 33 the planning, engineering, acquisition, construction, 34 reconstruction and improvement of watershed, drainage, flood SB146 Enrolled -11- LRB9100650EGfg 1 control, recreation and related improvements and facilities, 2 including expenses related to land and easement acquisition, 3 relocation, control structures, channel work and clearing and 4 appurtenant work; the making of grants for improvement and 5 development of zoos and park district field houses and 6 related structures; and the making of grants for improvement 7 and development of Navy Pier and related structures. 8 (b) $46,301,500 for fostering economic development and 9 increased employment and the well being of the citizens of 10 Illinois, including: the making of grants for improvement and 11 development of McCormick Place and related structures; the 12 planning and construction of a microelectronics research 13 center, including the planning, engineering, construction, 14 improvement, renovation and acquisition of buildings, 15 equipment and related utility support systems; the making of 16 loans to businesses and investments in small businesses; 17 acquiring real properties for industrial or commercial site 18 development; acquiring, rehabilitating and reconveying 19 industrial and commercial properties for the purpose of 20 expanding employment and encouraging private and other public 21 sector investment in the economy of Illinois; the payment of 22 expenses associated with siting the Superconducting Super 23 Collider Particle Accelerator in Illinois and with its 24 acquisition, construction, maintenance, operation, promotion 25 and support; the making of loans for the planning, 26 engineering, acquisition, construction, improvement and 27 conversion of facilities and equipment which will foster the 28 use of Illinois coal; the payment of expenses associated with 29 the promotion, establishment, acquisition and operation of 30 small business incubator facilities and agribusiness research 31 facilities, including the lease, purchase, renovation, 32 planning, engineering, construction and maintenance of 33 buildings, utility support systems and equipment designated 34 for such purposes and the establishment and maintenance of SB146 Enrolled -12- LRB9100650EGfg 1 centralized support services within such facilities; and the 2 making of grants or loans to units of local government for 3 Urban Development Action Grant and Housing Partnership 4 programs. 5 (c) $461,128,600 for the development and improvement of 6 educational, scientific, technical and vocational programs 7 and facilities and the expansion of health and human services 8 for all citizens of Illinois, including: the making of 9 construction and improvement grants and loans to public 10 libraries and library systems; the making of grants and loans 11 for planning, engineering, acquisition and construction of a 12 new State central library in Springfield; the planning, 13 engineering, acquisition and construction of an animal and 14 dairy sciences facility; the planning, engineering, 15 acquisition and construction of a campus and all related 16 buildings, facilities, equipment and materials for Richland 17 Community College; the acquisition, rehabilitation and 18 installation of equipment and materials for scientific and 19 historical surveys; the making of grants or loans for 20 distribution to eligible vocational education instructional 21 programs for the upgrading of vocational education programs, 22 school shops and laboratories, including the acquisition, 23 rehabilitation and installation of technical equipment and 24 materials; the making of grants or loans for distribution to 25 eligible local educational agencies for the upgrading of math 26 and science instructional programs, including the acquisition 27 of instructional equipment and materials; miscellaneous 28 capital improvements for universities and community colleges 29 including the planning, engineering, construction, 30 reconstruction, remodeling, improvement, repair and 31 installation of capital facilities and costs of planning, 32 supplies, equipment, materials, services, and all other 33 required expenses; the making of grants or loans for repair, 34 renovation and miscellaneous capital improvements for SB146 Enrolled -13- LRB9100650EGfg 1 privately operated colleges and universities and community 2 colleges, including the planning, engineering, acquisition, 3 construction, reconstruction, remodeling, improvement, repair 4 and installation of capital facilities and costs of planning, 5 supplies, equipment, materials, services, and all other 6 required expenses; and the making of grants or loans for 7 distribution to local governments for hospital and other 8 health care facilities including the planning, engineering, 9 acquisition, construction, reconstruction, remodeling, 10 improvement, repair and installation of capital facilities 11 and costs of planning, supplies, equipment, materials, 12 services and all other required expenses. 13 (d) $58,650,900 for protection, preservation, 14 restoration and conservation of environmental and natural 15 resources, including: the making of grants to soil and water 16 conservation districts for the planning and implementation of 17 conservation practices and for funding contracts with the 18 Soil Conservation Service for watershed planning; the making 19 of grants to units of local government for the capital 20 development and improvement of recreation areas, including 21 planning and engineering costs, sewer projects, including 22 planning and engineering costs and water projects, including 23 planning and engineering costs, and for the acquisition of 24 open space lands, including the acquisition of easements and 25 other property interests of less than fee simple ownership; 26 the acquisition and related costs and development and 27 management of natural heritage lands, including natural areas 28 and areas providing habitat for endangered species and 29 nongame wildlife, and buffer area lands; the acquisition and 30 related costs and development and management of habitat 31 lands, including forest, wildlife habitat and wetlands; and 32 the removal and disposition of hazardous substances, 33 including the cost of project management, equipment, 34 laboratory analysis, and contractual services necessary for SB146 Enrolled -14- LRB9100650EGfg 1 preventative and corrective actions related to the 2 preservation, restoration and conservation of the 3 environment. 4 (e) The amount specified in paragraph (a) above shall 5 include an amount necessary to pay reasonable expenses of 6 each issuance and sale of the Bonds, as specified in the 7 related Bond Sale Order (hereinafter defined). 8 (f) Any unexpended proceeds from any sale of Bonds which 9 are held in the Build Illinois Bond Fund may be used to 10 redeem, purchase, advance refund, or defease any Bonds 11 outstanding. 12 (Source: P.A. 86-44; 86-78; 86-1028; 86-1473; 87-873.) 13 (30 ILCS 425/11) (from Ch. 127, par. 2811) 14 Sec. 11. Repayment. (a) To provide for the repayment of 15 Bonds and required deposits into reserve funds required to be 16 maintained as security for the Bonds, the Governor shall 17 include an appropriation in each annual State Budget of 18 moneys in the following amounts for the following fiscal 19 years 1986 through 1993: 20 Fiscal Year Amount Appropriated 21 1986 $15,000,000 22 1987 $25,000,000 23 1988 $40,000,000 24 1989 $54,000,000 25 1990 $ 85,400,000 26 1991 $133,600,000 27 1992 $164,400,000 28 1993 $188,900,000 29 To provide for the repayment of Bonds in fiscal years 30 1994 and thereafter, the Governor shall include an 31 appropriation in each annual State Budget of moneys in such 32 amount as shall be necessary and sufficient, for the period 33 covered by such Budget, to pay the interest, as it shall SB146 Enrolled -15- LRB9100650EGfg 1 accrue, on all Bonds issued under this Act, to pay and 2 discharge the principal of such Bonds, including any sinking 3 fund redemptions, as shall fall due during such period, to 4 pay the premium, if any, on Bonds to be redeemed prior to 5 maturity and to make required deposits to any reserve funds 6 required to be maintained as security for Bonds or for the 7 purpose of retiring or defeasing Bonds, including any 8 replenishments in the event of deficiencies in any reserve 9 funds; provided, however, that amounts included in such 10 appropriations for payment of interest on Variable Rate Bonds 11 shall be the maximum amounts of interest which may be payable 12 for the period covered by such Budget after taking into 13 account any credits permitted in the related indenture 14 against the amount of such interest required to be 15 appropriated for such period; and, further provided that such 16 appropriated amount shall not be less than the Annual 17 Specified Amount (as defined in Section 3 of the "Retailers' 18 Occupation Tax Act", as amended) for any such fiscal year. 19 (b) A separate fund in the State Treasury called the 20 "Build Illinois Bond Retirement and Interest Fund" is hereby 21 created. 22 (c) The General Assembly shall annually make 23 appropriations to pay the principal of and interest and 24 premium, if any, on the Bonds sold under this Act and to make 25 required deposits into reserve funds required to be 26 maintained as security for the Bonds from the Build Illinois 27 Bond Retirement and Interest Fund in the following amounts 28 for the following fiscal years 1986 through 1993: 29 Fiscal Year Amount Appropriated 30 1986 $15,000,000 31 1987 $25,000,000 32 1988 $40,000,000 33 1989 $54,000,000 34 1990 $ 85,400,000 SB146 Enrolled -16- LRB9100650EGfg 1 1991 $133,600,000 2 1992 $164,400,000 3 1993 $188,900,000 4 To provide for the repayment of the Bonds and required 5 reserve fund deposits in fiscal years 1994 and thereafter the 6 General Assembly shall annually make appropriations from the 7 Build Illinois Bond Retirement and Interest Fund in such 8 amounts as shall be necessary and sufficient to pay the 9 principal of, premium, if any, and interest on the Bonds 10 coming due in each such fiscal year, including any sinking 11 fund redemptions, and to make required deposits to reserve 12 funds for the purpose of securing Bonds or retiring or 13 defeasing Bonds, including replenishment of any deficiencies 14 therein; provided, however, that amounts included in such 15 appropriations for payment of interest on Variable Rate Bonds 16 shall be the maximum amounts of interest which may be payable 17 during such fiscal year after taking into account any credits 18 permitted in the related indenture against the amount of such 19 interest required to be appropriated for such period; and, 20 further provided, that such appropriated amount shall not be 21 less than the Annual Specified Amount for any such fiscal 22 year. If for any reason the State Treasurer and Comptroller 23 fail to (i) credit amounts to the Build Illinois Bond Account 24 (the "Build Illinois Bond Account") in the Build Illinois 25 Fund in the State Treasury created under Section 6z-9 of "An 26 Act in relation to State finance", approved June 10, 1919, as 27 amended, (the "Finance Act") as required by Sections 6z-9 and 28 8.25 of the Finance Act or (ii) make transfers to the Build 29 Illinois Bond Retirement and Interest Fund from the Build 30 Illinois Bond Account as required by Section 8.25 of the 31 Finance Act or (iii) make payments from the Build Illinois 32 Bond Retirement and Interest Fund to the trustee under the 33 Master Indenture as required by Section 13 of this Act, or if 34 for any reason the General Assembly fails to make SB146 Enrolled -17- LRB9100650EGfg 1 appropriations from the Build Illinois Bond Retirement and 2 Interest Fund sufficient to pay the principal of and interest 3 and premium, if any, on the Bonds, as the same by their terms 4 shall become due, and to make required deposits into reserve 5 funds required to be maintained as security for the Bonds or 6 to retire or defease Bonds, including replenishment of any 7 deficiencies, this Act shall constitute an irrevocable and 8 continuing appropriation of all amounts necessary for all of 9 the above purposes, and the irrevocable and continuing 10 authority for and direction to the State Treasurer and the 11 Comptroller to make the necessary transfers and deposits, as 12 directed by the Governor, from the sources specified in 13 Sections 6z-9 and 8.25 of the Finance Act to the Build 14 Illinois Bond Account and from the Build Illinois Bond 15 Account to the Build Illinois Bond Retirement and Interest 16 Fund and to make the necessary payments from the Build 17 Illinois Bond Retirement and Interest Fund to the trustee 18 under the Master Indenture. 19 (Source: P.A. 86-17; 86-44.) 20 (30 ILCS 425/13) (from Ch. 127, par. 2813) 21 Sec. 13. Computation of Principal and Interest; Transfer 22 from Build Illinois Bond Account; Payment from Build Illinois 23 Bond Retirement and Interest Fund. Upon each delivery of 24 Bonds authorized to be issued under this Act, the trustee 25 under the Master Indenture shall compute and certify to the 26 Director of the Bureau of the Budget, the Comptroller and the 27 Treasurer (a) the total amount of the principal of and the 28 interest and the premium, if any, on the Bonds then being 29 issued and on Bonds previously issued and outstanding that 30 will be payable in order to retire such Bonds at their stated 31 maturities or mandatory sinking fund payment dates and (b) 32 the amount of principal of and interest and premium, if any, 33 on such Bonds that will be payable on each principal, SB146 Enrolled -18- LRB9100650EGfg 1 interest and mandatory sinking fund payment date according to 2 the tenor of such Bonds during the then current and each 3 succeeding fiscal year. Such certifications shall include 4 with respect to interest payable on Variable Rate Bonds the 5 maximum amount of interest which may be payable for the 6 relevant period after taking into account any credits 7 permitted in the related indenture against the amount of such 8 interest required to be appropriated for such period pursuant 9 to subsection (c) of Section 11 of this Act. 10 On or before June 20, 1993 and on or before each June 20 11 thereafter so long as Bonds remain outstanding, the trustee 12 under the Master Indenture shall deliver to the Director of 13 the Bureau of the Budget, the Comptroller and the Treasurer a 14 certificate setting forth the "Certified Annual Debt Service 15 Requirement" (hereinafter defined) for the next succeeding 16 fiscal year. If Bonds are issued subsequent to the delivery 17 of any such certificate, upon the issuance of such Bonds the 18 trustee under the Master Indenture shall deliver a 19 supplemental certificate setting forth the revisions, if any, 20 in the Certified Annual Debt Service Requirement resulting 21 from the issuance of such Bonds. The "Certified Annual Debt 22 Service Requirement" for any fiscal year shall be an amount 23 equal to (a) the aggregate amount of principal, interest and 24 premium, if any, payable on outstanding Bonds during such 25 fiscal year plus (b) the amount required to be deposited into 26 any reserve fund securing such Bonds or for the purpose of 27 retiring or defeasing such Bonds plus (c) the amount of any 28 deficiencies in required transfers of amounts described in 29 clauses (a) and (b) for any prior fiscal year, minus (d) the 30 amount, if any, of such interest to be paid from Bond 31 proceeds on deposit under any indenture; provided, however, 32 that interest payable on Variable Rate Bonds shall be 33 calculated at the maximum rate of interest which may be 34 payable during such fiscal year after taking into account any SB146 Enrolled -19- LRB9100650EGfg 1 credits permitted in the related indenture against the amount 2 of such interest required to be appropriated for such period 3 pursuant to subsection (c) of Section 11 of this Act. 4 In each month during fiscal years 1986 through 1993, the 5 State Treasurer and Comptroller shall transfer, on the last 6 day of such month, from the Build Illinois Bond Account to 7 the Build Illinois Bond Retirement and Interest Fund and 8 shall make payment from the Build Illinois Bond Retirement 9 and Interest Fund to the trustee under the Master Indenture 10 of an amount equal to 1/12 of 150% of the amount set forth 11 below for each such fiscal year, plus any cumulative 12 deficiency in such transfers and payments for prior months; 13 provided that such transfers shall commence in October, 1985 14 and such amounts for fiscal year 1986 shall equal 1/9 of 150% 15 of the amount set forth below for such fiscal year: 16 Fiscal Year Amount 17 1986 $15,000,000 18 1987 $25,000,000 19 1988 $40,000,000 20 1989 $54,000,000 21 1990 $85,400,000 22 1991 $133,600,000 23 1992 $164,400,000 24 1993 $188,900,000 25 provided that payments of such amounts from the Build 26 Illinois Bond Retirement and Interest Fund to the trustee 27 under the Master Indenture shall commence on the last day of 28 the month in which Bonds are initially issued under this Act; 29 and, further provided, that the first such payment to said 30 trustee shall equal the entire amount then on deposit in the 31 Build Illinois Bond Retirement and Interest Fund; and, 32 further provided, that the aggregate amount of transfers and 33 payments for any such fiscal year shall not exceed the amount 34 set forth above for such fiscal year. SB146 Enrolled -20- LRB9100650EGfg 1 In each month in which Bonds are outstanding during 2 fiscal year 1994 and each fiscal year thereafter, the State 3 Treasurer and Comptroller shall transfer, on the last day of 4 such month, from the Build Illinois Bond Account to the Build 5 Illinois Bond Retirement and Interest Fund and shall make 6 payment from the Build Illinois Bond Retirement and Interest 7 Fund to the trustee under the Master Indenture of an amount 8 equal to the greater of (a) 1/12th of 150% of the Certified 9 Annual Debt Service Requirement or (b) the Tax Act Amount (as 10 defined in Section 3 of the "Retailers' Occupation Tax Act", 11 as amended) deposited in the Build Illinois Bond Account 12 during such month, plus any cumulative deficiency in such 13 transfers and payments for prior months; provided that such 14 transfers and payments for any such fiscal year shall not 15 exceed the greater of (a) the Certified Annual Debt Service 16 Requirement or (b) the Tax Act Amount. 17 (Source: P.A. 86-17; 86-44; 86-1028.) 18 Section 20. The Baccalaureate Savings Act is amended by 19 re-enacting Section 4 as follows: 20 (110 ILCS 920/4) (from Ch. 144, par. 2404) 21 Sec. 4. Issuance and Sale of College Savings Bonds. In 22 order to provide investors with investment alternatives to 23 enhance their financial access to Institutions of Higher 24 Education located in the State of Illinois, and in 25 furtherance of the public policy of this Act, bonds 26 authorized by the provisions of the General Obligation Bond 27 Act, in a total aggregate original principal amount not to 28 exceed $2,200,000,000 may be issued and sold from time to 29 time, and as often as practicable, as College Savings Bonds 30 in such amounts as directed by the Governor, upon 31 recommendation by the Director of the Bureau of the Budget. 32 Bonds to be issued and sold as College Savings Bonds shall be SB146 Enrolled -21- LRB9100650EGfg 1 designated by the Governor and the Director of the Bureau of 2 the Budget as "General Obligation College Savings Bonds" in 3 the proceedings authorizing the issuance of such Bonds, and 4 shall be subject to all of the terms and provisions of the 5 General Obligation Bond Act, except that College Savings 6 Bonds may bear interest payable at such time or times and may 7 be sold at such prices and in such manner as may be 8 determined by the Governor and the Director of the Bureau of 9 the Budget and except as otherwise provided in this Act. If 10 College Savings Bonds are sold at public sale, the public 11 sale procedures shall be as set forth in Section 11 of the 12 General Obligation Bond Act. College Savings Bonds may be 13 sold at negotiated sale if the Director of the Bureau of the 14 Budget determines that a negotiated sale will result in 15 either a more efficient and economic sale of such Bonds or 16 greater access to such Bonds by investors who are residents 17 of the State of Illinois. If any College Savings Bonds are 18 sold at a negotiated sale, the underwriter or underwriters to 19 which such Bonds are sold shall (a) be organized, 20 incorporated or have their principal place of business in the 21 State of Illinois, or (b) in the judgment of the Director of 22 the Bureau of the Budget, have sufficient capability to make 23 a broad distribution of such Bonds to investors resident in 24 the State of Illinois. In determining the aggregate 25 principal amount of College Savings Bonds that has been 26 issued pursuant to this Act, the aggregate original principal 27 amount of such Bonds issued and sold shall be taken into 28 account. Any bond issued under this Act shall be payable in 29 one payment on a fixed date, unless the Governor and the 30 Director of the Bureau of the Budget determine otherwise. 31 (Source: P.A. 90-1, eff. 2-20-97.) SB146 Enrolled -22- LRB9100650EGfg 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.