Bill Text: IL HB4371 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the General Obligation Bond Act. Authorizes the issuance of an additional $107,420,000,000 in State Serial Long Term Pension Obligation Bonds. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act to create the State Pension Serial Long Term Obligation Bond Fund. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB4371 Detail]
Download: Illinois-2017-HB4371-Introduced.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 3. The State Finance Act is amended by adding | ||||||||||||||||||||||||||||||||||||||||
5 | Section 5.886 as follows:
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6 | (30 ILCS 105/5.886 new) | ||||||||||||||||||||||||||||||||||||||||
7 | Sec. 5.886. The State Serial Long Term Pension Obligation | ||||||||||||||||||||||||||||||||||||||||
8 | Bond Fund.
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9 | Section 5. The General Obligation Bond Act is amended by | ||||||||||||||||||||||||||||||||||||||||
10 | changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding | ||||||||||||||||||||||||||||||||||||||||
11 | Section 7.7 as follows:
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12 | (30 ILCS 330/2) (from Ch. 127, par. 652) | ||||||||||||||||||||||||||||||||||||||||
13 | Sec. 2. Authorization for Bonds. The State of Illinois is | ||||||||||||||||||||||||||||||||||||||||
14 | authorized to
issue, sell and provide for the retirement of | ||||||||||||||||||||||||||||||||||||||||
15 | General Obligation Bonds of
the State of Illinois for the | ||||||||||||||||||||||||||||||||||||||||
16 | categories and specific purposes expressed in
Sections 2 | ||||||||||||||||||||||||||||||||||||||||
17 | through 8 of this Act, in the total amount of $163,337,925,743 | ||||||||||||||||||||||||||||||||||||||||
18 | $55,917,925,743 . | ||||||||||||||||||||||||||||||||||||||||
19 | The bonds authorized in this Section 2 and in Section 16 of | ||||||||||||||||||||||||||||||||||||||||
20 | this Act are
herein called "Bonds". | ||||||||||||||||||||||||||||||||||||||||
21 | Of the total amount of Bonds authorized in this Act, up to |
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1 | $2,200,000,000
in aggregate original principal amount may be | ||||||
2 | issued and sold in accordance
with the Baccalaureate Savings | ||||||
3 | Act in the form of General Obligation
College Savings Bonds. | ||||||
4 | Of the total amount of Bonds authorized in this Act, up to | ||||||
5 | $300,000,000 in
aggregate original principal amount may be | ||||||
6 | issued and sold in accordance
with the Retirement Savings Act | ||||||
7 | in the form of General Obligation
Retirement Savings Bonds. | ||||||
8 | Of the total amount of Bonds authorized in this Act, the | ||||||
9 | additional
$10,000,000,000 authorized by Public Act 93-2, the | ||||||
10 | $3,466,000,000 authorized by Public Act 96-43, and the | ||||||
11 | $4,096,348,300 authorized by Public Act 96-1497 shall be used | ||||||
12 | solely as provided in Section 7.2. | ||||||
13 | Of the total amount of Bonds authorized in this Act, the | ||||||
14 | additional $6,000,000,000 authorized by this amendatory Act of | ||||||
15 | the 100th General Assembly shall be used solely as provided in | ||||||
16 | Section 7.6 and shall be issued by December 31, 2017. | ||||||
17 | Of the total amount of Bonds authorized in this Act, the | ||||||
18 | additional $107,420,000,000 authorized by Section 7.7 shall be | ||||||
19 | used solely as provided in Section 7.7. | ||||||
20 | The issuance and sale of Bonds pursuant to the General | ||||||
21 | Obligation Bond
Act is an economical and efficient method of | ||||||
22 | financing the long-term capital needs of
the State. This Act | ||||||
23 | will permit the issuance of a multi-purpose General
Obligation | ||||||
24 | Bond with uniform terms and features. This will not only lower
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25 | the cost of registration but also reduce the overall cost of | ||||||
26 | issuing debt
by improving the marketability of Illinois General |
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1 | Obligation Bonds. | ||||||
2 | (Source: P.A. 100-23, eff. 7-6-17.)
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3 | (30 ILCS 330/2.5) | ||||||
4 | Sec. 2.5. Limitation on issuance of Bonds. | ||||||
5 | (a) Except as provided in subsection (b), no Bonds may be | ||||||
6 | issued if, after the issuance, in the next State fiscal year | ||||||
7 | after the issuance of the Bonds, the amount of debt service | ||||||
8 | (including principal, whether payable at maturity or pursuant | ||||||
9 | to mandatory sinking fund installments, and interest) on all | ||||||
10 | then-outstanding Bonds, other than (i) Bonds authorized by | ||||||
11 | Public Act 100-23 this amendatory Act of the 100th General | ||||||
12 | Assembly , (ii) Bonds issued by Public Act 96-43, and (iii) | ||||||
13 | Bonds authorized by Public Act 96-1497, and (iv) Bonds | ||||||
14 | authorized by this amendatory Act of the 100th General | ||||||
15 | Assembly, would exceed 7% of the aggregate appropriations from | ||||||
16 | the general funds (which consist of the General Revenue Fund, | ||||||
17 | the Common School Fund, the General Revenue Common School | ||||||
18 | Special Account Fund, and the Education Assistance Fund) and | ||||||
19 | the Road Fund for the fiscal year immediately prior to the | ||||||
20 | fiscal year of the issuance. | ||||||
21 | (b) If the Comptroller and Treasurer each consent in | ||||||
22 | writing, Bonds may be issued even if the issuance does not | ||||||
23 | comply with subsection (a). In addition, $2,000,000,000 in | ||||||
24 | Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7, | ||||||
25 | and $2,000,000,000 in Refunding Bonds under Section 16, may be |
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1 | issued during State fiscal year 2017 without complying with | ||||||
2 | subsection (a). In addition, $2,000,000,000 in Bonds for the | ||||||
3 | purposes set forth in Sections 3, 4, 5, 6, and 7, and | ||||||
4 | $2,000,000,000 in Refunding Bonds under Section 16, may be | ||||||
5 | issued during State fiscal year 2018 without complying with | ||||||
6 | subsection (a).
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7 | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | ||||||
8 | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | ||||||
9 | 7-6-17; revised 8-8-17.)
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10 | (30 ILCS 330/7.7 new) | ||||||
11 | Sec. 7.7. State Serial Long Term Pension Obligation Bonds. | ||||||
12 | (a) As used in this Act, "State Serial Long Term Pension | ||||||
13 | Obligation Bonds" means Bonds authorized by this amendatory Act | ||||||
14 | of the 100th General Assembly and used for the purposes set | ||||||
15 | forth in this Section. | ||||||
16 | (b) State Serial Long Term Pension Obligation Bonds in the | ||||||
17 | amount of $107,420,000,000 are hereby authorized to be used for | ||||||
18 | the purposes set forth in this Section. | ||||||
19 | (c) The proceeds of State Serial Long Term Pension | ||||||
20 | Obligation Bonds authorized in subsection (b) of this Section | ||||||
21 | shall be deposited directly into the State Serial Long Term | ||||||
22 | Pension Obligation Bond Fund, and the Comptroller and the | ||||||
23 | Treasurer shall, as soon as practical, make payments as | ||||||
24 | contemplated by subsection (d) of this Section. | ||||||
25 | (d) There is created the State Serial Long Term Pension |
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1 | Obligation Bond Fund as a special fund in the State Treasury. | ||||||
2 | Funds deposited in the State Serial Long Term Pension | ||||||
3 | Obligation Bond Fund may be used only to make payments to the | ||||||
4 | State pension systems on a pro-rated basis in an amount | ||||||
5 | sufficient to bring the actuarially accrued unfunded liability | ||||||
6 | of each individual Fund to a 90% level. Notwithstanding any | ||||||
7 | other provision of law, each retirement system under Article | ||||||
8 | 14, 15, or 16 of the Illinois Pension Code shall establish a | ||||||
9 | designated investment fund for 36% of the bond proceeds it | ||||||
10 | receives from any bond issuance authorized by this amendatory | ||||||
11 | Act of the 100th General Assembly. The designated investment | ||||||
12 | fund shall be used solely for the purposes of taking advantage | ||||||
13 | of interest arbitrage from the bond proceeds and for making | ||||||
14 | debt service contributions related to the bonds issued under | ||||||
15 | this amendatory Act of the 100th General Assembly.
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16 | (30 ILCS 330/9) (from Ch. 127, par. 659)
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17 | Sec. 9. Conditions for issuance and sale of Bonds; | ||||||
18 | requirements Issuance and Sale of Bonds - Requirements for
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19 | Bonds. | ||||||
20 | (a) Except as otherwise provided in this subsection , and | ||||||
21 | subsection (h), and subsection (i), Bonds shall be issued and | ||||||
22 | sold from time to time, in one or
more series, in such amounts | ||||||
23 | and at such prices as may be directed by the
Governor, upon | ||||||
24 | recommendation by the Director of the
Governor's Office of | ||||||
25 | Management and Budget.
Bonds shall be in such form (either |
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1 | coupon, registered or book entry), in
such denominations, | ||||||
2 | payable within 25 years from their date, subject to such
terms | ||||||
3 | of redemption with or without premium, bear interest payable at
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4 | such times and at such fixed or variable rate or rates, and be | ||||||
5 | dated
as shall be fixed and determined by the Director of
the
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6 | Governor's Office of Management and Budget
in the order | ||||||
7 | authorizing the issuance and sale
of any series of Bonds, which | ||||||
8 | order shall be approved by the Governor
and is herein called a | ||||||
9 | "Bond Sale Order"; provided however, that interest
payable at | ||||||
10 | fixed or variable rates shall not exceed that permitted in the
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11 | Bond Authorization Act, as now or hereafter amended. Bonds | ||||||
12 | shall be
payable at such place or places, within or without the | ||||||
13 | State of Illinois, and
may be made registrable as to either | ||||||
14 | principal or as to both principal and
interest, as shall be | ||||||
15 | specified in the Bond Sale Order. Bonds may be callable
or | ||||||
16 | subject to purchase and retirement or tender and remarketing as | ||||||
17 | fixed
and determined in the Bond Sale Order. Bonds, other than | ||||||
18 | Bonds issued under Section 3 of this Act for the costs | ||||||
19 | associated with the purchase and implementation of information | ||||||
20 | technology, (i) except for refunding Bonds satisfying the | ||||||
21 | requirements of Section 16 of this Act and sold during fiscal | ||||||
22 | year 2009, 2010, 2011, 2017, or 2018 must be issued with | ||||||
23 | principal or mandatory redemption amounts in equal amounts, | ||||||
24 | with the first maturity issued occurring within the fiscal year | ||||||
25 | in which the Bonds are issued or within the next succeeding | ||||||
26 | fiscal year and (ii) must mature or be subject to mandatory |
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1 | redemption each fiscal year thereafter up to 25 years, except | ||||||
2 | for refunding Bonds satisfying the requirements of Section 16 | ||||||
3 | of this Act and sold during fiscal year 2009, 2010, or 2011 | ||||||
4 | which must mature or be subject to mandatory redemption each | ||||||
5 | fiscal year thereafter up to 16 years. Bonds issued under | ||||||
6 | Section 3 of this Act for the costs associated with the | ||||||
7 | purchase and implementation of information technology must be | ||||||
8 | issued with principal or mandatory redemption amounts in equal | ||||||
9 | amounts, with the first maturity issued occurring with the | ||||||
10 | fiscal year in which the respective bonds are issued or with | ||||||
11 | the next succeeding fiscal year, with the respective bonds | ||||||
12 | issued maturing or subject to mandatory redemption each fiscal | ||||||
13 | year thereafter up to 10 years. Notwithstanding any provision | ||||||
14 | of this Act to the contrary, the Bonds authorized by Public Act | ||||||
15 | 96-43 shall be payable within 5 years from their date and must | ||||||
16 | be issued with principal or mandatory redemption amounts in | ||||||
17 | equal amounts, with payment of principal or mandatory | ||||||
18 | redemption beginning in the first fiscal year following the | ||||||
19 | fiscal year in which the Bonds are issued.
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20 | Notwithstanding any provision of this Act to the contrary, | ||||||
21 | the Bonds authorized by Public Act 96-1497 shall be payable | ||||||
22 | within 8 years from their date and shall be issued with payment | ||||||
23 | of maturing principal or scheduled mandatory redemptions in | ||||||
24 | accordance with the following schedule, except the following | ||||||
25 | amounts shall be prorated if less than the total additional | ||||||
26 | amount of Bonds authorized by Public Act 96-1497 are issued: |
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1 | Fiscal Year After Issuance Amount | ||||||
2 | 1-2 $0 | ||||||
3 | 3 $110,712,120 | ||||||
4 | 4 $332,136,360 | ||||||
5 | 5 $664,272,720 | ||||||
6 | 6-8 $996,409,080 | ||||||
7 | Notwithstanding any provision of this Act to the contrary, | ||||||
8 | Income Tax Proceed Bonds issued under Section 7.6 shall be | ||||||
9 | payable 12 years from the date of sale and shall be issued with | ||||||
10 | payment of principal or mandatory redemption. | ||||||
11 | In the case of any series of Bonds bearing interest at a | ||||||
12 | variable interest
rate ("Variable Rate Bonds"), in lieu of | ||||||
13 | determining the rate or rates at which
such series of Variable | ||||||
14 | Rate Bonds shall bear interest and the price or prices
at which | ||||||
15 | such Variable Rate Bonds shall be initially sold or remarketed | ||||||
16 | (in the
event of purchase and subsequent resale), the Bond Sale | ||||||
17 | Order may provide that
such interest rates and prices may vary | ||||||
18 | from time to time depending on criteria
established in such | ||||||
19 | Bond Sale Order, which criteria may include, without
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20 | limitation, references to indices or variations in interest | ||||||
21 | rates as may, in
the judgment of a remarketing agent, be | ||||||
22 | necessary to cause Variable Rate Bonds
of such series to be | ||||||
23 | remarketable from time to time at a price equal to their
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24 | principal amount, and may provide for appointment of a bank, | ||||||
25 | trust company,
investment bank, or other financial institution | ||||||
26 | to serve as remarketing agent
in that connection.
The Bond Sale |
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1 | Order may provide that alternative interest rates or provisions
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2 | for establishing alternative interest rates, different | ||||||
3 | security or claim
priorities, or different call or amortization | ||||||
4 | provisions will apply during
such times as Variable Rate Bonds | ||||||
5 | of any series are held by a person providing
credit or | ||||||
6 | liquidity enhancement arrangements for such Bonds as | ||||||
7 | authorized in
subsection (b) of this Section.
The Bond Sale | ||||||
8 | Order may also provide for such variable interest rates to be
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9 | established pursuant to a process generally known as an auction | ||||||
10 | rate process
and may provide for appointment of one or more | ||||||
11 | financial institutions to serve
as auction agents and | ||||||
12 | broker-dealers in connection with the establishment of
such | ||||||
13 | interest rates and the sale and remarketing of such Bonds.
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14 | (b) In connection with the issuance of any series of Bonds, | ||||||
15 | the State may
enter into arrangements to provide additional | ||||||
16 | security and liquidity for such
Bonds, including, without | ||||||
17 | limitation, bond or interest rate insurance or
letters of | ||||||
18 | credit, lines of credit, bond purchase contracts, or other
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19 | arrangements whereby funds are made available to retire or | ||||||
20 | purchase Bonds,
thereby assuring the ability of owners of the | ||||||
21 | Bonds to sell or redeem their
Bonds. The State may enter into | ||||||
22 | contracts and may agree to pay fees to persons
providing such | ||||||
23 | arrangements, but only under circumstances where the Director | ||||||
24 | of
the
Governor's Office of Management and Budget certifies | ||||||
25 | that he or she reasonably expects the total
interest paid or to | ||||||
26 | be paid on the Bonds, together with the fees for the
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1 | arrangements (being treated as if interest), would not, taken | ||||||
2 | together, cause
the Bonds to bear interest, calculated to their | ||||||
3 | stated maturity, at a rate in
excess of the rate that the Bonds | ||||||
4 | would bear in the absence of such
arrangements.
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5 | The State may, with respect to Bonds issued or anticipated | ||||||
6 | to be issued,
participate in and enter into arrangements with | ||||||
7 | respect to interest rate
protection or exchange agreements, | ||||||
8 | guarantees, or financial futures contracts
for the purpose of | ||||||
9 | limiting, reducing, or managing interest rate exposure.
The | ||||||
10 | authority granted under this paragraph, however, shall not | ||||||
11 | increase the principal amount of Bonds authorized to be issued | ||||||
12 | by law. The arrangements may be executed and delivered by the | ||||||
13 | Director
of the
Governor's Office of Management and Budget on | ||||||
14 | behalf of the State. Net payments for such
arrangements shall | ||||||
15 | constitute interest on the Bonds and shall be paid from the
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16 | General Obligation Bond Retirement and Interest Fund. The | ||||||
17 | Director of the
Governor's Office of Management and Budget | ||||||
18 | shall at least annually certify to the Governor and
the
State | ||||||
19 | Comptroller his or her estimate of the amounts of such net | ||||||
20 | payments to
be included in the calculation of interest required | ||||||
21 | to be paid by the State.
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22 | (c) Prior to the issuance of any Variable Rate Bonds | ||||||
23 | pursuant to
subsection (a), the Director of the
Governor's | ||||||
24 | Office of Management and Budget shall adopt an
interest rate | ||||||
25 | risk management policy providing that the amount of the State's
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26 | variable rate exposure with respect to Bonds shall not exceed |
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1 | 20%. This policy
shall remain in effect while any Bonds are | ||||||
2 | outstanding and the issuance of
Bonds
shall be subject to the | ||||||
3 | terms of such policy. The terms of this policy may be
amended | ||||||
4 | from time to time by the Director of the
Governor's Office of | ||||||
5 | Management and Budget but in no
event shall any amendment cause | ||||||
6 | the permitted level of the State's variable
rate exposure with | ||||||
7 | respect to Bonds to exceed 20%.
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8 | (d) "Build America Bonds" in this Section means Bonds | ||||||
9 | authorized by Section 54AA of the Internal Revenue Code of | ||||||
10 | 1986, as amended ("Internal Revenue Code"), and bonds issued | ||||||
11 | from time to time to refund or continue to refund "Build | ||||||
12 | America Bonds". | ||||||
13 | (e) Notwithstanding any other provision of this Section, | ||||||
14 | Qualified School Construction Bonds shall be issued and sold | ||||||
15 | from time to time, in one or more series, in such amounts and | ||||||
16 | at such prices as may be directed by the Governor, upon | ||||||
17 | recommendation by the Director of the Governor's Office of | ||||||
18 | Management and Budget. Qualified School Construction Bonds | ||||||
19 | shall be in such form (either coupon, registered or book | ||||||
20 | entry), in such denominations, payable within 25 years from | ||||||
21 | their date, subject to such terms of redemption with or without | ||||||
22 | premium, and if the Qualified School Construction Bonds are | ||||||
23 | issued with a supplemental coupon, bear interest payable at | ||||||
24 | such times and at such fixed or variable rate or rates, and be | ||||||
25 | dated as shall be fixed and determined by the Director of the | ||||||
26 | Governor's Office of Management and Budget in the order |
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1 | authorizing the issuance and sale of any series of Qualified | ||||||
2 | School Construction Bonds, which order shall be approved by the | ||||||
3 | Governor and is herein called a "Bond Sale Order"; except that | ||||||
4 | interest payable at fixed or variable rates, if any, shall not | ||||||
5 | exceed that permitted in the Bond Authorization Act, as now or | ||||||
6 | hereafter amended. Qualified School Construction Bonds shall | ||||||
7 | be payable at such place or places, within or without the State | ||||||
8 | of Illinois, and may be made registrable as to either principal | ||||||
9 | or as to both principal and interest, as shall be specified in | ||||||
10 | the Bond Sale Order. Qualified School Construction Bonds may be | ||||||
11 | callable or subject to purchase and retirement or tender and | ||||||
12 | remarketing as fixed and determined in the Bond Sale Order. | ||||||
13 | Qualified School Construction Bonds must be issued with | ||||||
14 | principal or mandatory redemption amounts or sinking fund | ||||||
15 | payments into the General Obligation Bond Retirement and | ||||||
16 | Interest Fund (or subaccount therefor) in equal amounts, with | ||||||
17 | the first maturity issued, mandatory redemption payment or | ||||||
18 | sinking fund payment occurring within the fiscal year in which | ||||||
19 | the Qualified School Construction Bonds are issued or within | ||||||
20 | the next succeeding fiscal year, with Qualified School | ||||||
21 | Construction Bonds issued maturing or subject to mandatory | ||||||
22 | redemption or with sinking fund payments thereof deposited each | ||||||
23 | fiscal year thereafter up to 25 years. Sinking fund payments | ||||||
24 | set forth in this subsection shall be permitted only to the | ||||||
25 | extent authorized in Section 54F of the Internal Revenue Code | ||||||
26 | or as otherwise determined by the Director of the Governor's |
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1 | Office of Management and Budget. "Qualified School | ||||||
2 | Construction Bonds" in this subsection means Bonds authorized | ||||||
3 | by Section 54F of the Internal Revenue Code and for bonds | ||||||
4 | issued from time to time to refund or continue to refund such | ||||||
5 | "Qualified School Construction Bonds". | ||||||
6 | (f) Beginning with the next issuance by the Governor's | ||||||
7 | Office of Management and Budget to the Procurement Policy Board | ||||||
8 | of a request for quotation for the purpose of formulating a new | ||||||
9 | pool of qualified underwriting banks list, all entities | ||||||
10 | responding to such a request for quotation for inclusion on | ||||||
11 | that list shall provide a written report to the Governor's | ||||||
12 | Office of Management and Budget and the Illinois Comptroller. | ||||||
13 | The written report submitted to the Comptroller shall (i) be | ||||||
14 | published on the Comptroller's Internet website and (ii) be | ||||||
15 | used by the Governor's Office of Management and Budget for the | ||||||
16 | purposes of scoring such a request for quotation. The written | ||||||
17 | report, at a minimum, shall: | ||||||
18 | (1) disclose whether, within the past 3 months, | ||||||
19 | pursuant to its credit default swap market-making | ||||||
20 | activities, the firm has entered into any State of Illinois | ||||||
21 | credit default swaps ("CDS"); | ||||||
22 | (2) include, in the event of State of Illinois CDS | ||||||
23 | activity, disclosure of the firm's cumulative notional | ||||||
24 | volume of State of Illinois CDS trades and the firm's | ||||||
25 | outstanding gross and net notional amount of State of | ||||||
26 | Illinois CDS, as of the end of the current 3-month period; |
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1 | (3) indicate, pursuant to the firm's proprietary | ||||||
2 | trading activities, disclosure of whether the firm, within | ||||||
3 | the past 3 months, has entered into any proprietary trades | ||||||
4 | for its own account in State of Illinois CDS; | ||||||
5 | (4) include, in the event of State of Illinois | ||||||
6 | proprietary trades, disclosure of the firm's outstanding | ||||||
7 | gross and net notional amount of proprietary State of | ||||||
8 | Illinois CDS and whether the net position is short or long | ||||||
9 | credit protection, as of the end of the current 3-month | ||||||
10 | period; | ||||||
11 | (5) list all time periods during the past 3 months | ||||||
12 | during which the firm held net long or net short State of | ||||||
13 | Illinois CDS proprietary credit protection positions, the | ||||||
14 | amount of such positions, and whether those positions were | ||||||
15 | net long or net short credit protection positions; and | ||||||
16 | (6) indicate whether, within the previous 3 months, the | ||||||
17 | firm released any publicly available research or marketing | ||||||
18 | reports that reference State of Illinois CDS and include | ||||||
19 | those research or marketing reports as attachments. | ||||||
20 | (g) All entities included on a Governor's Office of | ||||||
21 | Management and Budget's pool of qualified underwriting banks | ||||||
22 | list shall, as soon as possible after March 18, 2011 (the | ||||||
23 | effective date of Public Act 96-1554), but not later than | ||||||
24 | January 21, 2011, and on a quarterly fiscal basis thereafter, | ||||||
25 | provide a written report to the Governor's Office of Management | ||||||
26 | and Budget and the Illinois Comptroller. The written reports |
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1 | submitted to the Comptroller shall be published on the | ||||||
2 | Comptroller's Internet website. The written reports, at a | ||||||
3 | minimum, shall: | ||||||
4 | (1) disclose whether, within the past 3 months, | ||||||
5 | pursuant to its credit default swap market-making | ||||||
6 | activities, the firm has entered into any State of Illinois | ||||||
7 | credit default swaps ("CDS"); | ||||||
8 | (2) include, in the event of State of Illinois CDS | ||||||
9 | activity, disclosure of the firm's cumulative notional | ||||||
10 | volume of State of Illinois CDS trades and the firm's | ||||||
11 | outstanding gross and net notional amount of State of | ||||||
12 | Illinois CDS, as of the end of the current 3-month period; | ||||||
13 | (3) indicate, pursuant to the firm's proprietary | ||||||
14 | trading activities, disclosure of whether the firm, within | ||||||
15 | the past 3 months, has entered into any proprietary trades | ||||||
16 | for its own account in State of Illinois CDS; | ||||||
17 | (4) include, in the event of State of Illinois | ||||||
18 | proprietary trades, disclosure of the firm's outstanding | ||||||
19 | gross and net notional amount of proprietary State of | ||||||
20 | Illinois CDS and whether the net position is short or long | ||||||
21 | credit protection, as of the end of the current 3-month | ||||||
22 | period; | ||||||
23 | (5) list all time periods during the past 3 months | ||||||
24 | during which the firm held net long or net short State of | ||||||
25 | Illinois CDS proprietary credit protection positions, the | ||||||
26 | amount of such positions, and whether those positions were |
| |||||||
| |||||||
1 | net long or net short credit protection positions; and | ||||||
2 | (6) indicate whether, within the previous 3 months, the | ||||||
3 | firm released any publicly available research or marketing | ||||||
4 | reports that reference State of Illinois CDS and include | ||||||
5 | those research or marketing reports as attachments. | ||||||
6 | (h) Notwithstanding any other provision of this Section, | ||||||
7 | for purposes of maximizing market efficiencies and cost | ||||||
8 | savings, Income Tax Proceed Bonds may be issued and sold from | ||||||
9 | time to time, in one or more series, in such amounts and at | ||||||
10 | such prices as may be directed by the Governor, upon | ||||||
11 | recommendation by the Director of the Governor's Office of | ||||||
12 | Management and Budget. Income Tax Proceed Bonds shall be in | ||||||
13 | such form, either coupon, registered, or book entry, in such | ||||||
14 | denominations, shall bear interest payable at such times and at | ||||||
15 | such fixed or variable rate or rates, and be dated as shall be | ||||||
16 | fixed and determined by the Director of the Governor's Office | ||||||
17 | of Management and Budget in the order authorizing the issuance | ||||||
18 | and sale of any series of Income Tax Proceed Bonds, which order | ||||||
19 | shall be approved by the Governor and is herein called a "Bond | ||||||
20 | Sale Order"; provided, however, that interest payable at fixed | ||||||
21 | or variable rates shall not exceed that permitted in the Bond | ||||||
22 | Authorization Act. Income Tax Proceed Bonds shall be payable at | ||||||
23 | such place or places, within or without the State of Illinois, | ||||||
24 | and may be made registrable as to either principal or as to | ||||||
25 | both principal and interest, as shall be specified in the Bond | ||||||
26 | Sale Order.
Income Tax Proceed Bonds may be callable or subject |
| |||||||
| |||||||
1 | to purchase and retirement or tender and remarketing as fixed | ||||||
2 | and determined in the Bond Sale Order. | ||||||
3 | (i) Notwithstanding any other provision of this Section, | ||||||
4 | for purposes of maximizing market efficiencies and cost | ||||||
5 | savings, State Serial Long Term Pension Obligation Bonds may be | ||||||
6 | issued and sold from time to time, in one or more series, in | ||||||
7 | such amounts and at such prices as may be directed by the | ||||||
8 | Governor, upon recommendation by the Director of the Governor's | ||||||
9 | Office of Management and Budget. State Serial Long Term Pension | ||||||
10 | Obligation Bonds shall be in such form, either coupon, | ||||||
11 | registered, or book entry, in such denominations, shall bear | ||||||
12 | interest payable at such times and at such fixed or variable | ||||||
13 | rate or rates, and be dated as shall be fixed and determined by | ||||||
14 | the Director of the Governor's Office of Management and Budget | ||||||
15 | in the order authorizing the issuance and sale of any series of | ||||||
16 | State Serial Long Term Pension Obligation Bonds, which order | ||||||
17 | shall be approved by the Governor and is herein called a "Bond | ||||||
18 | Sale Order"; provided, however, that interest payable at fixed | ||||||
19 | or variable rates shall not exceed that permitted in the Bond | ||||||
20 | Authorization Act. State Serial Long Term Pension Obligation | ||||||
21 | Bonds shall be payable at such place or places, within or | ||||||
22 | without the State of Illinois, and may be made registrable as | ||||||
23 | to either principal or as to both principal and interest, as | ||||||
24 | shall be specified in the Bond Sale Order.
State Serial Long | ||||||
25 | Term Pension Obligation Bonds may be callable or subject to | ||||||
26 | purchase and retirement or tender and remarketing as fixed and |
| |||||||
| |||||||
1 | determined in the Bond Sale Order. The term of such State | ||||||
2 | Serial Long Term Pension Obligation Bonds shall not exceed 30 | ||||||
3 | years. | ||||||
4 | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | ||||||
5 | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | ||||||
6 | 7-6-17; revised 8-8-17.)
| ||||||
7 | (30 ILCS 330/11) (from Ch. 127, par. 661)
| ||||||
8 | Sec. 11. Sale of Bonds. Except as otherwise provided in | ||||||
9 | this Section,
Bonds shall be sold from time to time pursuant to
| ||||||
10 | notice of sale and public bid or by negotiated sale
in such | ||||||
11 | amounts and at such
times as is directed by the Governor, upon | ||||||
12 | recommendation by the Director of
the
Governor's Office of | ||||||
13 | Management and Budget. At least 25%, based on total principal | ||||||
14 | amount, of all Bonds issued each fiscal year shall be sold | ||||||
15 | pursuant to notice of sale and public bid. At all times during | ||||||
16 | each fiscal year, no more than 75%, based on total principal | ||||||
17 | amount, of the Bonds issued each fiscal year, shall have been | ||||||
18 | sold by negotiated sale. Failure to satisfy the requirements in | ||||||
19 | the preceding 2 sentences shall not affect the validity of any | ||||||
20 | previously issued Bonds; provided that all Bonds authorized by | ||||||
21 | Public Act 96-43 and Public Act 96-1497 shall not be included | ||||||
22 | in determining compliance for any fiscal year with the | ||||||
23 | requirements of the preceding 2 sentences; and further provided | ||||||
24 | that refunding Bonds satisfying the requirements of Section 16 | ||||||
25 | of this Act and sold during fiscal year 2009, 2010, 2011, 2017, |
| |||||||
| |||||||
1 | or 2018 shall not be subject to the requirements in the | ||||||
2 | preceding 2 sentences.
| ||||||
3 | If
any Bonds, including refunding Bonds, are to be sold by | ||||||
4 | negotiated
sale, the
Director of the
Governor's Office of | ||||||
5 | Management and Budget
shall comply with the
competitive request | ||||||
6 | for proposal process set forth in the Illinois
Procurement Code | ||||||
7 | and all other applicable requirements of that Code.
| ||||||
8 | If Bonds are to be sold pursuant to notice of sale and | ||||||
9 | public bid, the
Director of the
Governor's Office of Management | ||||||
10 | and Budget may, from time to time, as Bonds are to be sold, | ||||||
11 | advertise
the sale of the Bonds in at least 2 daily newspapers, | ||||||
12 | one of which is
published in the City of Springfield and one in | ||||||
13 | the City of Chicago. The sale
of the Bonds shall also be
| ||||||
14 | advertised in the volume of the Illinois Procurement Bulletin | ||||||
15 | that is
published by the Department of Central Management | ||||||
16 | Services, and shall be published once at least
10 days prior to | ||||||
17 | the date fixed
for the opening of the bids. The Director of the
| ||||||
18 | Governor's Office of Management and Budget may
reschedule the | ||||||
19 | date of sale upon the giving of such additional notice as the
| ||||||
20 | Director deems adequate to inform prospective bidders of
such | ||||||
21 | change; provided, however, that all other conditions of the | ||||||
22 | sale shall
continue as originally advertised.
| ||||||
23 | Executed Bonds shall, upon payment therefor, be delivered | ||||||
24 | to the purchaser,
and the proceeds of Bonds shall be paid into | ||||||
25 | the State Treasury as directed by
Section 12 of this Act.
| ||||||
26 | All Income Tax Proceed Bonds shall comply with this |
| |||||||
| |||||||
1 | Section. Notwithstanding anything to the contrary, however, | ||||||
2 | for purposes of complying with this Section, Income Tax Proceed | ||||||
3 | Bonds, regardless of the number of series or issuances sold | ||||||
4 | thereunder, shall be
considered a single issue or series. | ||||||
5 | Furthermore, for purposes of complying with the competitive | ||||||
6 | bidding requirements of this Section, the words "at all times" | ||||||
7 | shall not apply to any such sale of the Income Tax Proceed | ||||||
8 | Bonds. The Director of the Governor's Office of Management and | ||||||
9 | Budget shall determine the time and manner of any competitive | ||||||
10 | sale of the Income Tax Proceed Bonds; however, that sale shall | ||||||
11 | under no circumstances take place later than 60 days after the | ||||||
12 | State closes the sale of 75% of the Income Tax Proceed Bonds by | ||||||
13 | negotiated sale. | ||||||
14 | All State Serial Long Term Pension Obligation Bonds shall | ||||||
15 | comply with this Section. Notwithstanding anything to the | ||||||
16 | contrary, however, for purposes of complying with this Section, | ||||||
17 | State Serial Long Term Pension Obligation Bonds, regardless of | ||||||
18 | the number of series or issuances sold thereunder, shall be
| ||||||
19 | considered a single issue or series. Furthermore, for purposes | ||||||
20 | of complying with the competitive bidding requirements of this | ||||||
21 | Section, the words "at all times" shall not apply to any such | ||||||
22 | sale of the State Serial Long Term Pension Obligation Bonds. | ||||||
23 | The Director of the Governor's Office of Management and Budget | ||||||
24 | shall determine the time and manner of any competitive sale of | ||||||
25 | the State Serial Long Term Pension Obligation Bonds; however, | ||||||
26 | that sale shall under no circumstances take place later than 60 |
| |||||||
| |||||||
1 | days after the State closes the sale of 75% of the State Serial | ||||||
2 | Long Term Pension Obligation Bonds by negotiated sale. | ||||||
3 | (Source: P.A. 99-523, eff. 6-30-16; 100-23, Article 25, Section | ||||||
4 | 25-5, eff. 7-6-17; 100-23, Article 75, Section 75-10, eff. | ||||||
5 | 7-6-17; revised 8-15-17.)
| ||||||
6 | (30 ILCS 330/12) (from Ch. 127, par. 662)
| ||||||
7 | Sec. 12. Allocation of proceeds from sale of Bonds.
| ||||||
8 | (a) Proceeds from the sale of Bonds, authorized by Section | ||||||
9 | 3 of this Act,
shall be deposited in the separate fund known as | ||||||
10 | the Capital Development Fund.
| ||||||
11 | (b) Proceeds from the sale of Bonds, authorized by | ||||||
12 | paragraph (a) of Section
4 of this Act, shall be deposited in | ||||||
13 | the separate fund known as the
Transportation Bond, Series A | ||||||
14 | Fund.
| ||||||
15 | (c) Proceeds from the sale of Bonds, authorized by | ||||||
16 | paragraphs (b) and (c)
of Section 4 of this Act, shall be | ||||||
17 | deposited in the separate fund known
as the Transportation | ||||||
18 | Bond, Series B Fund.
| ||||||
19 | (c-1) Proceeds from the sale of Bonds, authorized by | ||||||
20 | paragraph (d) of Section 4 of this Act, shall be deposited into | ||||||
21 | the Transportation Bond Series D Fund, which is hereby created. | ||||||
22 | (d) Proceeds from the sale of Bonds, authorized by Section | ||||||
23 | 5 of this
Act, shall be deposited in the separate fund known as | ||||||
24 | the School Construction
Fund.
| ||||||
25 | (e) Proceeds from the sale of Bonds, authorized by Section |
| |||||||
| |||||||
1 | 6 of this Act,
shall be deposited in the separate fund known as | ||||||
2 | the Anti-Pollution Fund.
| ||||||
3 | (f) Proceeds from the sale of Bonds, authorized by Section | ||||||
4 | 7 of this Act,
shall be deposited in the separate fund known as | ||||||
5 | the Coal Development Fund.
| ||||||
6 | (f-2) Proceeds from the sale of Bonds, authorized by | ||||||
7 | Section 7.2 of this
Act, shall be deposited as set forth in | ||||||
8 | Section 7.2.
| ||||||
9 | (f-5) Proceeds from the sale of Bonds, authorized by | ||||||
10 | Section 7.5 of this
Act, shall be deposited as set forth in | ||||||
11 | Section 7.5.
| ||||||
12 | (f-7) Proceeds from the sale of Bonds, authorized by | ||||||
13 | Section 7.6 of this Act, shall be deposited as set forth in | ||||||
14 | Section 7.6. | ||||||
15 | (f-8) Proceeds from the sale of Bonds, authorized by | ||||||
16 | Section 7.7 of this Act, shall be deposited as set forth in | ||||||
17 | Section 7.7. | ||||||
18 | (g) Proceeds from the sale of Bonds, authorized by Section | ||||||
19 | 8 of this Act,
shall be deposited in
the Capital Development | ||||||
20 | Fund.
| ||||||
21 | (h) Subsequent to the issuance of any Bonds for the | ||||||
22 | purposes described
in Sections 2 through 8 of this Act, the | ||||||
23 | Governor and the Director of the
Governor's Office of | ||||||
24 | Management and Budget may provide for the reallocation of | ||||||
25 | unspent proceeds
of such Bonds to any other purposes authorized | ||||||
26 | under said Sections of this
Act, subject to the limitations on |
| |||||||
| |||||||
1 | aggregate principal amounts contained
therein. Upon any such | ||||||
2 | reallocation, such unspent proceeds shall be
transferred to the | ||||||
3 | appropriate funds as determined by reference to
paragraphs (a) | ||||||
4 | through (g) of this Section.
| ||||||
5 | (Source: P.A. 100-23, eff. 7-6-17.)
| ||||||
6 | (30 ILCS 330/13) (from Ch. 127, par. 663)
| ||||||
7 | Sec. 13. Appropriation of proceeds from sale of Bonds.
| ||||||
8 | (a) At all times, the proceeds from the sale of Bonds | ||||||
9 | issued pursuant
to this Act are subject to appropriation by the | ||||||
10 | General Assembly and,
except as provided in Sections 7.2 , and | ||||||
11 | 7.6, and 7.7, may be obligated or expended only
with the | ||||||
12 | written approval of the Governor, in such amounts, at such | ||||||
13 | times,
and for such purposes as the respective
State agencies, | ||||||
14 | as defined in Section 1-7 of the Illinois State Auditing
Act, | ||||||
15 | as amended, deem necessary or desirable for the specific | ||||||
16 | purposes
contemplated in Sections 2 through 8 of this Act. | ||||||
17 | Notwithstanding any other provision of this Act, proceeds from | ||||||
18 | the sale of Bonds issued pursuant to this Act appropriated by | ||||||
19 | the General Assembly to the Architect of the Capitol may be | ||||||
20 | obligated or expended by the Architect of the Capitol without | ||||||
21 | the written approval of the Governor.
| ||||||
22 | (b) Proceeds from the sale of Bonds for the purpose of | ||||||
23 | development of
coal and alternative forms of energy shall be | ||||||
24 | expended in such amounts and
at such times as the Department of | ||||||
25 | Commerce and Economic Opportunity, with the
advice and |
| |||||||
| |||||||
1 | recommendation of the Illinois Coal Development Board for coal
| ||||||
2 | development projects, may deem necessary and desirable for the | ||||||
3 | specific
purpose contemplated by Section 7 of this Act. In | ||||||
4 | considering the approval
of projects to be funded, the | ||||||
5 | Department of Commerce and
Economic Opportunity shall give
| ||||||
6 | special
consideration to projects designed to remove sulfur and | ||||||
7 | other pollutants in
the preparation and utilization of coal, | ||||||
8 | and in the use and operation of
electric utility generating | ||||||
9 | plants and industrial facilities which utilize
Illinois coal as | ||||||
10 | their primary source of fuel.
| ||||||
11 | (c) Except as directed in subsection (c-1) or (c-2), any | ||||||
12 | monies received by any officer or employee of the state
| ||||||
13 | representing a reimbursement of expenditures previously paid | ||||||
14 | from general
obligation bond proceeds shall be deposited into | ||||||
15 | the General Obligation
Bond Retirement and Interest Fund | ||||||
16 | authorized in Section 14 of this Act.
| ||||||
17 | (c-1) Any money received by the Department of | ||||||
18 | Transportation as reimbursement for expenditures for high | ||||||
19 | speed rail purposes pursuant to appropriations from the | ||||||
20 | Transportation Bond, Series B Fund for (i) CREATE (Chicago | ||||||
21 | Region Environmental and Transportation Efficiency), (ii) High | ||||||
22 | Speed Rail, or (iii) AMTRAK projects authorized by the federal | ||||||
23 | government under the provisions of the American Recovery and | ||||||
24 | Reinvestment Act of 2009 or the Safe Accountable Flexible | ||||||
25 | Efficient Transportation Equity Act-A Legacy for Users | ||||||
26 | (SAFETEA-LU), or any successor federal transportation |
| |||||||
| |||||||
1 | authorization Act, shall be deposited into the Federal High | ||||||
2 | Speed Rail Trust Fund. | ||||||
3 | (c-2) Any money received by the Department of | ||||||
4 | Transportation as reimbursement for expenditures for transit | ||||||
5 | capital purposes pursuant to appropriations from the | ||||||
6 | Transportation Bond, Series B Fund for projects authorized by | ||||||
7 | the federal government under the provisions of the American | ||||||
8 | Recovery and Reinvestment Act of 2009 or the Safe Accountable | ||||||
9 | Flexible Efficient Transportation Equity Act-A Legacy for | ||||||
10 | Users (SAFETEA-LU), or any successor federal transportation | ||||||
11 | authorization Act, shall be deposited into the Federal Mass | ||||||
12 | Transit Trust Fund. | ||||||
13 | (Source: P.A. 100-23, eff. 7-6-17 .)
| ||||||
14 | Section 10. The State Pension Funds Continuing | ||||||
15 | Appropriation Act is amended by adding Section 1.10 as follows:
| ||||||
16 | (40 ILCS 15/1.10 new) | ||||||
17 | Sec. 1.10. Appropriations for State Serial Long Term | ||||||
18 | Pension Obligation Bonds. If for any reason the aggregate | ||||||
19 | appropriations made available are insufficient to meet the | ||||||
20 | levels required for the payment of principal and interest due | ||||||
21 | on State Serial Long Term Pension Obligation Bonds under | ||||||
22 | Section 7.7 of the General Obligation Bond Act, this Section | ||||||
23 | shall constitute a continuing appropriation of all amounts | ||||||
24 | necessary for those purposes.
|
| |||||||
| |||||||