Bill Text: IL HB3871 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the State Budget Law. Provides for a continuing appropriation for funding of public education and human services. Amends the State Comptroller Act. Provides that if any cash flow deficit resulting from timing variation between disbursement and receipt of funds in the General Revenue Fund is anticipated, the Comptroller's efforts to manage timing variations shall include issuing payments for education and human services before issuing payments for financial services. Amends the State Treasurer Act. Provides that when any warrant is presented to the State Treasurer to be countersigned, he shall do so if the warrant is in proper form, there are sufficient moneys in the fund to pay the warrant, and payments for education and human services have been issued. Amends the General Obligation Bond Act. Provides that the irrevocable and continuing authority to appropriate funds under the Act shall cover payments to bondholders, but shall not cover fees for credit enhancements or net payments on interest rate swap agreements, or financial futures contracts associated with General Obligation Bonds. Defines terms.

Spectrum: Partisan Bill (Democrat 28-0)

Status: (Introduced) 2017-05-31 - Final Action Deadline Extended-9(b) June 30, 2017 [HB3871 Detail]

Download: Illinois-2017-HB3871-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3871

Introduced , by Rep. Robert Martwick

SYNOPSIS AS INTRODUCED:
15 ILCS 20/50-23 new
15 ILCS 20/50-24 new
15 ILCS 405/9.5 new
15 ILCS 505/11 from Ch. 130, par. 11
30 ILCS 330/14 from Ch. 127, par. 664

Amends the State Budget Law. Provides for a continuing appropriation for funding of public education and human services. Amends the State Comptroller Act. Provides that if any cash flow deficit resulting from timing variation between disbursement and receipt of funds in the General Revenue Fund is anticipated, the Comptroller's efforts to manage timing variations shall include issuing payments for education and human services before issuing payments for financial services. Amends the State Treasurer Act. Provides that when any warrant is presented to the State Treasurer to be countersigned, he shall do so if the warrant is in proper form, there are sufficient moneys in the fund to pay the warrant, and payments for education and human services have been issued. Amends the General Obligation Bond Act. Provides that the irrevocable and continuing authority to appropriate funds under the Act shall cover payments to bondholders, but shall not cover fees for credit enhancements or net payments on interest rate swap agreements, or financial futures contracts associated with General Obligation Bonds. Defines terms.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Budget Law of the Civil Administrative
5Code of Illinois is amended by adding Sections 50-23 and 50-24
6as follows:
7 (15 ILCS 20/50-23 new)
8 Sec. 50-23. Funding for public education.
9 (a) As it is a fundamental goal that the State support the
10educational development of all people of Illinois and as the
11State has primary responsibility for financing the system of
12public education, it is the policy of the State of Illinois
13that stability of payments for education shall be a priority.
14 (b) For purposes of this Section:
15 "Funding of public education" means appropriations
16 made available for public education from the General
17 Revenue Fund; Education Assistance Fund; Common School
18 Fund; Fund for the Advancement of Education; Personal
19 Property Tax Replacement Fund; Drivers Education Fund;
20 School District Emergency Financial Assistance Fund;
21 School Technology Revolving Loan Fund; SBE Federal
22 Department of Education Fund; and School Infrastructure
23 Fund.

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1 "Public education" means services provided for by a
2 school under the jurisdiction of the State Board of
3 Education or an institution of higher education under the
4 jurisdiction of the Board of Higher Education.
5 (c) The aggregate appropriations available for funding of
6public education in this State from all State funds for each
7State fiscal year shall be no less than the total aggregate
8appropriations made available for funding of public education
9in this State for the immediately preceding fiscal year.
10 (d) If for any reason the aggregate appropriations made
11available are insufficient to meet the levels required by
12subsection (b) of this Section, this subsection (c) shall
13constitute an irrevocable and continuing appropriation for the
14funding of public education at the previous year's levels, and
15the irrevocable and continuing authority for and direction to
16the State Treasurer and the Comptroller to make payments at
17these levels.
18 (15 ILCS 20/50-24 new)
19 Sec. 50-24. Funding for human services.
20 (a) To provide for public health and welfare it is the
21policy of the State that in payments from general revenue,
22stability of payments for human needs shall be a priority.
23 (b) For purposes of this Section:
24 "Human services" means all services provided for by the
25 following Departments: the Department of Human Services,

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1 the Department on Aging, the Department of Healthcare and
2 Family Services, the Department of Children and Family
3 Services, and the Department of Public Health.
4 "Funding of human services" means appropriations made
5 available for human services from the General Revenue Fund;
6 Commitment to Human Services Fund; Long Term Care Ombudsman
7 Fund; Tobacco Settlement Recovery Fund; and Department on
8 Aging State Projects Fund.
9 (c) The aggregate appropriations available for funding of
10human services in this State from all State funds for each
11State fiscal year shall be no less than the total aggregate
12appropriations made available for funding of services in this
13State for the immediately preceding fiscal year.
14 (d) If for any reason the aggregate appropriations made
15available are insufficient to meet the levels required by
16subsection (b) of this Section, this subsection (c) shall
17constitute an irrevocable and continuing appropriation of
18funding of human services at the previous year's levels, and
19the irrevocable and continuing authority for and direction to
20the State Treasurer and the Comptroller to make payments at
21these levels.
22 Section 10. The State Comptroller Act is amended by adding
23Section 9.5 as follows:
24 (15 ILCS 405/9.5 new)

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1 Sec. 9.5. Prioritization of payments.
2 (a) It is the policy of the State that in payments from the
3General Revenue Fund, payments for education and human needs
4should be prioritized in order to provide for the health,
5safety and wellbeing of the people of Illinois. The Comptroller
6is responsible for implementing this policy.
7 (b) As used in this section:
8 "Education" means services provided for by a school
9 under the jurisdiction of the State Board of Education or
10 an institution of higher education under the jurisdiction
11 of the Board of Higher Education.
12 "Human services" means all services provided for by the
13 following Departments: the Department of Human Services,
14 the Department on Aging, the Department of Healthcare and
15 Family Services, the Department of Children and Family
16 Services, and the Department of Public Health.
17 "Payments for financial services" means payments to
18 financial institutions for processes related to activities
19 of State finance. "Payments for financial services" shall
20 not include payments to bondholders; however, it shall
21 include, but not be limited to, payments for net payments
22 on interest rate swap agreements, fees for credit
23 enhancements and re-marketing, and other fees for
24 financial services associated with bonds.
25 (c) If any cash flow deficit resulting from timing
26variation between disbursement and receipt of funds in the

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1General Revenue Fund is anticipated, the Comptroller's efforts
2to manage timing variations shall include issuing payments for
3education and human services before issuing payments for
4financial services.
5 Section 15. The State Treasurer Act is amended by changing
6Section 11 as follows:
7 (15 ILCS 505/11) (from Ch. 130, par. 11)
8 Sec. 11. When any warrant is presented to the State
9Treasurer to be countersigned, he shall do so if the warrant is
10in proper form, and there are sufficient moneys in the fund to
11pay the warrant, and the provisions of Section 9.5 of the State
12Comptroller Act have been followed. He shall also make a record
13of the date and amount of each warrant.
14 Upon request for a wire or electronic transfer of funds
15pursuant to a warrant payable from the State treasury, the
16State Treasurer may impose upon and collect from the requesting
17payee a service charge covering all costs of such transfer.
18(Source: P.A. 99-562, eff. 1-1-17.)
19 Section 20. The General Obligation Bond Act is amended by
20changing Section 14 as follows:
21 (30 ILCS 330/14) (from Ch. 127, par. 664)
22 Sec. 14. Repayment.

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1 (a) To provide for the manner of repayment of Bonds, the
2Governor shall include an appropriation in each annual State
3Budget of monies in such amount as shall be necessary and
4sufficient, for the period covered by such budget, to pay the
5interest, as it shall accrue, on all Bonds issued under this
6Act, to pay and discharge the principal of such Bonds as shall,
7by their terms, fall due during such period, to pay a premium,
8if any, on Bonds to be redeemed prior to the maturity date, and
9to pay sinking fund payments in connection with Qualified
10School Construction Bonds authorized by subsection (e) of
11Section 9. Amounts included in such appropriations for the
12payment of interest on variable rate bonds shall be the maximum
13amounts of interest that may be payable for the period covered
14by the budget, after taking into account any credits permitted
15in the related indenture or other instrument against the amount
16of such interest required to be appropriated for such period.
17Amounts included in such appropriations for the payment of
18interest shall include the amounts certified by the Director of
19the Governor's Office of Management and Budget under subsection
20(b) of Section 9 of this Act.
21 (b) A separate fund in the State Treasury called the
22"General Obligation Bond Retirement and Interest Fund" is
23hereby created.
24 (c) The General Assembly shall annually make
25appropriations to pay the principal of, interest on, and
26premium, if any, on Bonds sold under this Act from the General

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1Obligation Bond Retirement and Interest Fund. Amounts included
2in such appropriations for the payment of interest on variable
3rate bonds shall be the maximum amounts of interest that may be
4payable during the fiscal year, after taking into account any
5credits permitted in the related indenture or other instrument
6against the amount of such interest required to be appropriated
7for such period. Amounts included in such appropriations for
8the payment of interest shall include the amounts certified by
9the Director of the Governor's Office of Management and Budget
10under subsection (b) of Section 9 of this Act.
11 If for any reason there are insufficient funds in either
12the General Revenue Fund or the Road Fund to make transfers to
13the General Obligation Bond Retirement and Interest Fund as
14required by Section 15 of this Act, or if for any reason the
15General Assembly fails to make appropriations sufficient to pay
16the principal of, interest on, and premium, if any, on the
17Bonds, as the same by their terms shall become due, this Act
18shall constitute an irrevocable and continuing appropriation
19of all amounts necessary for that purpose, and the irrevocable
20and continuing authority for and direction to the State
21Treasurer and the Comptroller to make the necessary transfers,
22as directed by the Governor, out of and disbursements from the
23revenues and funds of the State. The irrevocable and continuing
24authority shall cover payments to bondholders, but shall not
25cover fees for credit enhancements or net payments on interest
26rate swap agreements, or financial futures contracts

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1associated with General Obligation Bonds, including, but not
2limited to, bonds described under Section 9 of this Act.
3 (d) If, because of insufficient funds in either the General
4Revenue Fund or the Road Fund, monies have been transferred to
5the General Obligation Bond Retirement and Interest Fund, as
6required by subsection (c) of this Section, this Act shall
7constitute the irrevocable and continuing authority for and
8direction to the State Treasurer and Comptroller to reimburse
9these funds of the State from the General Revenue Fund or the
10Road Fund, as appropriate, by transferring, at such times and
11in such amounts, as directed by the Governor, an amount to
12these funds equal to that transferred from them.
13(Source: P.A. 96-828, eff. 12-2-09.)
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