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

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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: (Failed) 2019-01-08 - Session Sine Die [HB3871 Detail]

Download: Illinois-2017-HB3871-Introduced.html

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

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

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

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

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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.
Section 15. The State Treasurer Act is amended by changing
Section 11 as follows:
(15 ILCS 505/11) (from Ch. 130, par. 11)
Sec. 11. When any warrant is presented to the State
Treasurer to be countersigned, he shall do so if the warrant is
in proper form, and there are sufficient moneys in the fund to
pay the warrant, and the provisions of Section 9.5 of the State
Comptroller Act have been followed. He shall also make a record
of the date and amount of each warrant.
Upon request for a wire or electronic transfer of funds
pursuant to a warrant payable from the State treasury, the
State Treasurer may impose upon and collect from the requesting
payee a service charge covering all costs of such transfer.
(Source: P.A. 99-562, eff. 1-1-17.)
Section 20. The General Obligation Bond Act is amended by
changing Section 14 as follows:
(30 ILCS 330/14) (from Ch. 127, par. 664)
Sec. 14. Repayment.

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

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Obligation Bond Retirement and Interest Fund. Amounts included
in such appropriations for the payment of interest on variable
rate bonds shall be the maximum amounts of interest that may be
payable during the fiscal year, after taking into account any
credits permitted in the related indenture or other instrument
against the amount of such interest required to be appropriated
for such period. Amounts included in such appropriations for
the payment of interest shall include the amounts certified by
the Director of the Governor's Office of Management and Budget
under subsection (b) of Section 9 of this Act.
If for any reason there are insufficient funds in either
the General Revenue Fund or the Road Fund to make transfers to
the General Obligation Bond Retirement and Interest Fund as
required by Section 15 of this Act, or if for any reason the
General Assembly fails to make appropriations sufficient to pay
the principal of, interest on, and premium, if any, on the
Bonds, as the same by their terms shall become due, this Act
shall constitute an irrevocable and continuing appropriation
of all amounts necessary for that purpose, and the irrevocable
and continuing authority for and direction to the State
Treasurer and the Comptroller to make the necessary transfers,
as directed by the Governor, out of and disbursements from the
revenues and funds of the State. The irrevocable and continuing
authority 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

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