Bill Text: IL SB0004 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the General Obligation Bond Act. Authorizes the issuance of an additional $7,000,000,000 in State General Obligation Restructuring Bonds. Provides that the proceeds from that bond sale shall be used for the purpose of paying vouchers incurred by the State prior to July 1, 2017. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2017-05-31 - Final Action Deadline Extended-9(b) June 30, 2017 [SB0004 Detail]

Download: Illinois-2017-SB0004-Engrossed.html



SB0004 EngrossedLRB100 06348 HLH 16386 b
1 AN ACT concerning finance.
2 WHEREAS, the purpose of this amendatory Act of the 100th
3General Assembly is to provide financial relief to providers
4and vendors who do business with the State of Illinois;
5therefore
6 Be it enacted by the People of the State of Illinois,
7represented in the General Assembly:
8 Section 5. The General Obligation Bond Act is amended by
9changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding
10Section 7.6 as follows:
11 (30 ILCS 330/2) (from Ch. 127, par. 652)
12 Sec. 2. Authorization for Bonds. The State of Illinois is
13authorized to issue, sell and provide for the retirement of
14General Obligation Bonds of the State of Illinois for the
15categories and specific purposes expressed in Sections 2
16through 8 of this Act, in the total amount of $56,917,925,743
17$49,917,925,743.
18 The bonds authorized in this Section 2 and in Section 16 of
19this Act are herein called "Bonds".
20 Of the total amount of Bonds authorized in this Act, up to
21$2,200,000,000 in aggregate original principal amount may be
22issued and sold in accordance with the Baccalaureate Savings

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1Act in the form of General Obligation College Savings Bonds.
2 Of the total amount of Bonds authorized in this Act, up to
3$300,000,000 in aggregate original principal amount may be
4issued and sold in accordance with the Retirement Savings Act
5in the form of General Obligation Retirement Savings Bonds.
6 Of the total amount of Bonds authorized in this Act, the
7additional $10,000,000,000 authorized by Public Act 93-2, the
8$3,466,000,000 authorized by Public Act 96-43, and the
9$4,096,348,300 authorized by Public Act 96-1497 shall be used
10solely as provided in Section 7.2.
11 Of the total amount of Bonds authorized in this Act, the
12additional $7,000,000,000 authorized by this amendatory Act of
13the 100th General Assembly shall be used solely as provided in
14Section 7.6 and shall be issued by September 1, 2017.
15 The issuance and sale of Bonds pursuant to the General
16Obligation Bond Act is an economical and efficient method of
17financing the long-term capital needs of the State. This Act
18will permit the issuance of a multi-purpose General Obligation
19Bond with uniform terms and features. This will not only lower
20the cost of registration but also reduce the overall cost of
21issuing debt by improving the marketability of Illinois General
22Obligation Bonds.
23(Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;
2497-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.
258-16-13; 98-781, eff. 7-22-14.)

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1 (30 ILCS 330/2.5)
2 Sec. 2.5. Limitation on issuance of Bonds.
3 (a) Except as provided in subsection (b), no Bonds may be
4issued if, after the issuance, in the next State fiscal year
5after the issuance of the Bonds, the amount of debt service
6(including principal, whether payable at maturity or pursuant
7to mandatory sinking fund installments, and interest) on all
8then-outstanding Bonds, other than (i) Bonds authorized by this
9amendatory Act of the 100th General Assembly, (ii) Bonds issued
10authorized by Public Act 96-43, and (iii) other than Bonds
11authorized by Public Act 96-1497, would exceed 7% of the
12aggregate appropriations from the general funds (which consist
13of the General Revenue Fund, the Common School Fund, the
14General Revenue Common School Special Account Fund, and the
15Education Assistance Fund) and the Road Fund for the fiscal
16year immediately prior to the fiscal year of the issuance.
17 (b) If the Comptroller and Treasurer each consent in
18writing, Bonds may be issued even if the issuance does not
19comply with subsection (a). In addition, $2,000,000,000 in
20Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
21and $2,000,000,000 in Refunding Bonds under Section 16, may be
22issued during State fiscal year 2017 without complying with
23subsection (a).
24(Source: P.A. 99-523, eff. 6-30-16.)
25 (30 ILCS 330/7.6 new)

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1 Sec. 7.6. State General Obligation Restructuring Bonds.
2 (a) As used in this Act, "State General Obligation
3Restructuring Bonds" means Bonds (i) authorized by this
4amendatory Act of the 100th General Assembly or any other
5Public Act of the 100th General Assembly authorizing the
6issuance of State General Obligation Restructuring Bonds and
7(ii) used for the payment of unpaid obligations of the State as
8incurred from time to time and as authorized by the General
9Assembly.
10 (b) State General Obligation Restructuring Bonds in the
11amount of $7,000,000,000 are hereby authorized to be used for
12purpose of paying vouchers incurred by the State prior to July
131, 2017.
14 (c) The proceeds of State General Obligation Restructuring
15Bonds authorized in subsection (b) of this Section, less the
16amounts authorized in the Bond Sale Order to be deposited
17directly into the capitalized interest account of the General
18Obligation Bond Retirement and Interest Fund or otherwise
19directly paid out for bond sale expenses under Section 8, shall
20be deposited into the General Revenue Fund, and the Comptroller
21and the Treasurer shall, as soon as practical, make payments as
22contemplated by this Section.
23 (30 ILCS 330/9) (from Ch. 127, par. 659)
24 Sec. 9. Conditions for Issuance and Sale of Bonds -
25Requirements for Bonds.

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1 (a) Except as otherwise provided in this subsection and
2subsection (h), Bonds shall be issued and sold from time to
3time, in one or more series, in such amounts and at such prices
4as may be directed by the Governor, upon recommendation by the
5Director of the Governor's Office of Management and Budget.
6Bonds shall be in such form (either coupon, registered or book
7entry), in such denominations, payable within 25 years from
8their date, subject to such terms of redemption with or without
9premium, bear interest payable at such times and at such fixed
10or variable rate or rates, and be dated as shall be fixed and
11determined by the Director of the Governor's Office of
12Management and Budget in the order authorizing the issuance and
13sale of any series of Bonds, which order shall be approved by
14the Governor and is herein called a "Bond Sale Order"; provided
15however, that interest payable at fixed or variable rates shall
16not exceed that permitted in the Bond Authorization Act, as now
17or hereafter amended. Bonds shall be payable at such place or
18places, within or without the State of Illinois, and may be
19made registrable as to either principal or as to both principal
20and interest, as shall be specified in the Bond Sale Order.
21Bonds may be callable or subject to purchase and retirement or
22tender and remarketing as fixed and determined in the Bond Sale
23Order. Bonds, other than Bonds issued under Section 3 of this
24Act for the costs associated with the purchase and
25implementation of information technology, (i) except for
26refunding Bonds satisfying the requirements of Section 16 of

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1this Act and sold during fiscal year 2009, 2010, 2011, or 2017
2must be issued with principal or mandatory redemption amounts
3in equal amounts, with the first maturity issued occurring
4within the fiscal year in which the Bonds are issued or within
5the next succeeding fiscal year and (ii) must mature or be
6subject to mandatory redemption each fiscal year thereafter up
7to 25 years, except for refunding Bonds satisfying the
8requirements of Section 16 of this Act and sold during fiscal
9year 2009, 2010, or 2011 which must mature or be subject to
10mandatory redemption each fiscal year thereafter up to 16
11years. Bonds issued under Section 3 of this Act for the costs
12associated with the purchase and implementation of information
13technology must be issued with principal or mandatory
14redemption amounts in equal amounts, with the first maturity
15issued occurring with the fiscal year in which the respective
16bonds are issued or with the next succeeding fiscal year, with
17the respective bonds issued maturing or subject to mandatory
18redemption each fiscal year thereafter up to 10 years.
19Notwithstanding any provision of this Act to the contrary, the
20Bonds authorized by Public Act 96-43 shall be payable within 5
21years from their date and must be issued with principal or
22mandatory redemption amounts in equal amounts, with payment of
23principal or mandatory redemption beginning in the first fiscal
24year following the fiscal year in which the Bonds are issued.
25 Notwithstanding any provision of this Act to the contrary,
26the Bonds authorized by Public Act 96-1497 shall be payable

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1within 8 years from their date and shall be issued with payment
2of maturing principal or scheduled mandatory redemptions in
3accordance with the following schedule, except the following
4amounts shall be prorated if less than the total additional
5amount of Bonds authorized by Public Act 96-1497 are issued:
6 Fiscal Year After Issuance Amount
7 1-2 $0
8 3 $110,712,120
9 4 $332,136,360
10 5 $664,272,720
11 6-8 $996,409,080
12 Notwithstanding any provision of this Act to the contrary,
13State General Obligation Restructuring Bonds issued under
14Section 7.6 shall be payable within 7 years from the date of
15sale and shall be issued with payment of principal or mandatory
16redemption as set forth in subsection (h) of this Section.
17 In the case of any series of Bonds bearing interest at a
18variable interest rate ("Variable Rate Bonds"), in lieu of
19determining the rate or rates at which such series of Variable
20Rate Bonds shall bear interest and the price or prices at which
21such Variable Rate Bonds shall be initially sold or remarketed
22(in the event of purchase and subsequent resale), the Bond Sale
23Order may provide that such interest rates and prices may vary
24from time to time depending on criteria established in such
25Bond Sale Order, which criteria may include, without
26limitation, references to indices or variations in interest

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1rates as may, in the judgment of a remarketing agent, be
2necessary to cause Variable Rate Bonds of such series to be
3remarketable from time to time at a price equal to their
4principal amount, and may provide for appointment of a bank,
5trust company, investment bank, or other financial institution
6to serve as remarketing agent in that connection. The Bond Sale
7Order may provide that alternative interest rates or provisions
8for establishing alternative interest rates, different
9security or claim priorities, or different call or amortization
10provisions will apply during such times as Variable Rate Bonds
11of any series are held by a person providing credit or
12liquidity enhancement arrangements for such Bonds as
13authorized in subsection (b) of this Section. The Bond Sale
14Order may also provide for such variable interest rates to be
15established pursuant to a process generally known as an auction
16rate process and may provide for appointment of one or more
17financial institutions to serve as auction agents and
18broker-dealers in connection with the establishment of such
19interest rates and the sale and remarketing of such Bonds.
20 (b) In connection with the issuance of any series of Bonds,
21the State may enter into arrangements to provide additional
22security and liquidity for such Bonds, including, without
23limitation, bond or interest rate insurance or letters of
24credit, lines of credit, bond purchase contracts, or other
25arrangements whereby funds are made available to retire or
26purchase Bonds, thereby assuring the ability of owners of the

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1Bonds to sell or redeem their Bonds. The State may enter into
2contracts and may agree to pay fees to persons providing such
3arrangements, but only under circumstances where the Director
4of the Governor's Office of Management and Budget certifies
5that he or she reasonably expects the total interest paid or to
6be paid on the Bonds, together with the fees for the
7arrangements (being treated as if interest), would not, taken
8together, cause the Bonds to bear interest, calculated to their
9stated maturity, at a rate in excess of the rate that the Bonds
10would bear in the absence of such arrangements.
11 The State may, with respect to Bonds issued or anticipated
12to be issued, participate in and enter into arrangements with
13respect to interest rate protection or exchange agreements,
14guarantees, or financial futures contracts for the purpose of
15limiting, reducing, or managing interest rate exposure. The
16authority granted under this paragraph, however, shall not
17increase the principal amount of Bonds authorized to be issued
18by law. The arrangements may be executed and delivered by the
19Director of the Governor's Office of Management and Budget on
20behalf of the State. Net payments for such arrangements shall
21constitute interest on the Bonds and shall be paid from the
22General Obligation Bond Retirement and Interest Fund. The
23Director of the Governor's Office of Management and Budget
24shall at least annually certify to the Governor and the State
25Comptroller his or her estimate of the amounts of such net
26payments to be included in the calculation of interest required

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1to be paid by the State.
2 (c) Prior to the issuance of any Variable Rate Bonds
3pursuant to subsection (a), the Director of the Governor's
4Office of Management and Budget shall adopt an interest rate
5risk management policy providing that the amount of the State's
6variable rate exposure with respect to Bonds shall not exceed
720%. This policy shall remain in effect while any Bonds are
8outstanding and the issuance of Bonds shall be subject to the
9terms of such policy. The terms of this policy may be amended
10from time to time by the Director of the Governor's Office of
11Management and Budget but in no event shall any amendment cause
12the permitted level of the State's variable rate exposure with
13respect to Bonds to exceed 20%.
14 (d) "Build America Bonds" in this Section means Bonds
15authorized by Section 54AA of the Internal Revenue Code of
161986, as amended ("Internal Revenue Code"), and bonds issued
17from time to time to refund or continue to refund "Build
18America Bonds".
19 (e) Notwithstanding any other provision of this Section,
20Qualified School Construction Bonds shall be issued and sold
21from time to time, in one or more series, in such amounts and
22at such prices as may be directed by the Governor, upon
23recommendation by the Director of the Governor's Office of
24Management and Budget. Qualified School Construction Bonds
25shall be in such form (either coupon, registered or book
26entry), in such denominations, payable within 25 years from

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1their date, subject to such terms of redemption with or without
2premium, and if the Qualified School Construction Bonds are
3issued with a supplemental coupon, bear interest payable at
4such times and at such fixed or variable rate or rates, and be
5dated as shall be fixed and determined by the Director of the
6Governor's Office of Management and Budget in the order
7authorizing the issuance and sale of any series of Qualified
8School Construction Bonds, which order shall be approved by the
9Governor and is herein called a "Bond Sale Order"; except that
10interest payable at fixed or variable rates, if any, shall not
11exceed that permitted in the Bond Authorization Act, as now or
12hereafter amended. Qualified School Construction Bonds shall
13be payable at such place or places, within or without the State
14of Illinois, and may be made registrable as to either principal
15or as to both principal and interest, as shall be specified in
16the Bond Sale Order. Qualified School Construction Bonds may be
17callable or subject to purchase and retirement or tender and
18remarketing as fixed and determined in the Bond Sale Order.
19Qualified School Construction Bonds must be issued with
20principal or mandatory redemption amounts or sinking fund
21payments into the General Obligation Bond Retirement and
22Interest Fund (or subaccount therefor) in equal amounts, with
23the first maturity issued, mandatory redemption payment or
24sinking fund payment occurring within the fiscal year in which
25the Qualified School Construction Bonds are issued or within
26the next succeeding fiscal year, with Qualified School

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1Construction Bonds issued maturing or subject to mandatory
2redemption or with sinking fund payments thereof deposited each
3fiscal year thereafter up to 25 years. Sinking fund payments
4set forth in this subsection shall be permitted only to the
5extent authorized in Section 54F of the Internal Revenue Code
6or as otherwise determined by the Director of the Governor's
7Office of Management and Budget. "Qualified School
8Construction Bonds" in this subsection means Bonds authorized
9by Section 54F of the Internal Revenue Code and for bonds
10issued from time to time to refund or continue to refund such
11"Qualified School Construction Bonds".
12 (f) Beginning with the next issuance by the Governor's
13Office of Management and Budget to the Procurement Policy Board
14of a request for quotation for the purpose of formulating a new
15pool of qualified underwriting banks list, all entities
16responding to such a request for quotation for inclusion on
17that list shall provide a written report to the Governor's
18Office of Management and Budget and the Illinois Comptroller.
19The written report submitted to the Comptroller shall (i) be
20published on the Comptroller's Internet website and (ii) be
21used by the Governor's Office of Management and Budget for the
22purposes of scoring such a request for quotation. The written
23report, at a minimum, shall:
24 (1) disclose whether, within the past 3 months,
25 pursuant to its credit default swap market-making
26 activities, the firm has entered into any State of Illinois

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1 credit default swaps ("CDS");
2 (2) include, in the event of State of Illinois CDS
3 activity, disclosure of the firm's cumulative notional
4 volume of State of Illinois CDS trades and the firm's
5 outstanding gross and net notional amount of State of
6 Illinois CDS, as of the end of the current 3-month period;
7 (3) indicate, pursuant to the firm's proprietary
8 trading activities, disclosure of whether the firm, within
9 the past 3 months, has entered into any proprietary trades
10 for its own account in State of Illinois CDS;
11 (4) include, in the event of State of Illinois
12 proprietary trades, disclosure of the firm's outstanding
13 gross and net notional amount of proprietary State of
14 Illinois CDS and whether the net position is short or long
15 credit protection, as of the end of the current 3-month
16 period;
17 (5) list all time periods during the past 3 months
18 during which the firm held net long or net short State of
19 Illinois CDS proprietary credit protection positions, the
20 amount of such positions, and whether those positions were
21 net long or net short credit protection positions; and
22 (6) indicate whether, within the previous 3 months, the
23 firm released any publicly available research or marketing
24 reports that reference State of Illinois CDS and include
25 those research or marketing reports as attachments.
26 (g) All entities included on a Governor's Office of

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1Management and Budget's pool of qualified underwriting banks
2list shall, as soon as possible after March 18, 2011 (the
3effective date of Public Act 96-1554), but not later than
4January 21, 2011, and on a quarterly fiscal basis thereafter,
5provide a written report to the Governor's Office of Management
6and Budget and the Illinois Comptroller. The written reports
7submitted to the Comptroller shall be published on the
8Comptroller's Internet website. The written reports, at a
9minimum, shall:
10 (1) disclose whether, within the past 3 months,
11 pursuant to its credit default swap market-making
12 activities, the firm has entered into any State of Illinois
13 credit default swaps ("CDS");
14 (2) include, in the event of State of Illinois CDS
15 activity, disclosure of the firm's cumulative notional
16 volume of State of Illinois CDS trades and the firm's
17 outstanding gross and net notional amount of State of
18 Illinois CDS, as of the end of the current 3-month period;
19 (3) indicate, pursuant to the firm's proprietary
20 trading activities, disclosure of whether the firm, within
21 the past 3 months, has entered into any proprietary trades
22 for its own account in State of Illinois CDS;
23 (4) include, in the event of State of Illinois
24 proprietary trades, disclosure of the firm's outstanding
25 gross and net notional amount of proprietary State of
26 Illinois CDS and whether the net position is short or long

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1 credit protection, as of the end of the current 3-month
2 period;
3 (5) list all time periods during the past 3 months
4 during which the firm held net long or net short State of
5 Illinois CDS proprietary credit protection positions, the
6 amount of such positions, and whether those positions were
7 net long or net short credit protection positions; and
8 (6) indicate whether, within the previous 3 months, the
9 firm released any publicly available research or marketing
10 reports that reference State of Illinois CDS and include
11 those research or marketing reports as attachments.
12 (h) Notwithstanding any other provision of this Section,
13for purposes of maximizing market efficiencies and cost
14savings, State General Obligation Restructuring Bonds may be
15issued and sold from time to time, in one or more series, in
16such amounts and at such prices as may be directed by the
17Governor, upon recommendation by the Director of the Governor's
18Office of Management and Budget. State General Obligation
19Restructuring Bonds shall be in such form, either coupon,
20registered, or book entry, in such denominations, shall bear
21interest payable at such times and at such fixed or variable
22rate or rates, and be dated as shall be fixed and determined by
23the Director of the Governor's Office of Management and Budget
24in the order authorizing the issuance and sale of any series of
25State General Obligation Restructuring Bonds, which order
26shall be approved by the Governor and is herein called a "Bond

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1Sale Order"; provided, however, that interest payable at fixed
2or variable rates shall not exceed that permitted in the Bond
3Authorization Act. State General Obligation Restructuring
4Bonds shall be payable at such place or places, within or
5without the State of Illinois, and may be made registrable as
6to either principal or as to both principal and interest, as
7shall be specified in the Bond Sale Order. State General
8Obligation Restructuring Bonds may be callable or subject to
9purchase and retirement or tender and remarketing as fixed and
10determined in the Bond Sale Order.
11 The aggregate principal and interest amounts of State
12General Obligation Restructuring Bonds authorized by and
13issued pursuant to this amendatory Act of the 100th General
14Assembly or other such amendatory Acts of the 100th General
15Assembly authorizing the issuance of State General Obligation
16Restructuring Bonds shall, in the aggregate, mature or be
17subject to redemption in the annual percentages set forth in
18the following schedule:
19 (1) for fiscal year 2019, 14.2857%;
20 (2) for fiscal year 2020, 14.2857%;
21 (3) for fiscal year 2021, 14.2857%;
22 (4) for fiscal year 2022, 14.2857%;
23 (5) for fiscal year 2023, 14.2857%;
24 (6) for fiscal year 2024, 14.2857%; and
25 (7) for fiscal year 2025, 14.2858%.
26 Notwithstanding the foregoing, the principal amounts

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1calculated above shall be in increments of $5,000. Moreover,
2the percentages set forth in items (1) through (7) shall be
3applicable to the aggregate principal amount of State General
4Obligation Restructuring Bonds authorized by this amendatory
5Act of the 100th General Assembly and any other amendatory Acts
6of the 100th General Assembly authorizing State General
7Obligation Restructuring Bonds. While individual series of
8State General Obligation Restructuring Bonds as may be sold
9from time to time need not be scheduled to mature or be subject
10to redemption in accordance with the percentages above,
11redemptions whether by maturity or sinking fund, in any fiscal
12year for all State General Obligation Restructuring Bonds, in
13the aggregate, shall be no less than the percentages shown
14above. Notwithstanding the foregoing, in the event that fewer
15than all of the State General Obligation Restructuring Bonds
16authorized by this amendatory Act of the 100th General Assembly
17have been issued by September 1, 2017, failure of the
18then-outstanding State General Obligation Restructuring Bonds
19to satisfy the repayment schedule set forth above shall not
20affect the validity of any of those outstanding Bonds.
21(Source: P.A. 99-523, eff. 6-30-16.)
22 (30 ILCS 330/11) (from Ch. 127, par. 661)
23 Sec. 11. Sale of Bonds. Except as otherwise provided in
24this Section, Bonds shall be sold from time to time pursuant to
25notice of sale and public bid or by negotiated sale in such

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1amounts and at such times as is directed by the Governor, upon
2recommendation by the Director of the Governor's Office of
3Management and Budget. At least 25%, based on total principal
4amount, of all Bonds issued each fiscal year shall be sold
5pursuant to notice of sale and public bid. At all times during
6each fiscal year, no more than 75%, based on total principal
7amount, of the Bonds issued each fiscal year, shall have been
8sold by negotiated sale. Failure to satisfy the requirements in
9the preceding 2 sentences shall not affect the validity of any
10previously issued Bonds; provided that all Bonds authorized by
11Public Act 96-43 and Public Act 96-1497 shall not be included
12in determining compliance for any fiscal year with the
13requirements of the preceding 2 sentences; and further provided
14that refunding Bonds satisfying the requirements of Section 16
15of this Act and sold during fiscal year 2009, 2010, 2011, or
162017 shall not be subject to the requirements in the preceding
172 sentences.
18 If any Bonds, including refunding Bonds, are to be sold by
19negotiated sale, the Director of the Governor's Office of
20Management and Budget shall comply with the competitive request
21for proposal process set forth in the Illinois Procurement Code
22and all other applicable requirements of that Code.
23 If Bonds are to be sold pursuant to notice of sale and
24public bid, the Director of the Governor's Office of Management
25and Budget may, from time to time, as Bonds are to be sold,
26advertise the sale of the Bonds in at least 2 daily newspapers,

SB0004 Engrossed- 19 -LRB100 06348 HLH 16386 b
1one of which is published in the City of Springfield and one in
2the City of Chicago. The sale of the Bonds shall also be
3advertised in the volume of the Illinois Procurement Bulletin
4that is published by the Department of Central Management
5Services, and shall be published once at least 10 days prior to
6the date fixed for the opening of the bids. The Director of the
7Governor's Office of Management and Budget may reschedule the
8date of sale upon the giving of such additional notice as the
9Director deems adequate to inform prospective bidders of such
10change; provided, however, that all other conditions of the
11sale shall continue as originally advertised.
12 Executed Bonds shall, upon payment therefor, be delivered
13to the purchaser, and the proceeds of Bonds shall be paid into
14the State Treasury as directed by Section 12 of this Act.
15 All State General Obligation Restructuring Bonds shall
16comply with this Section. Notwithstanding anything to the
17contrary, however, for purposes of complying with this Section,
18State General Obligation Restructuring Bonds, regardless of
19the number of series or issuances sold thereunder, shall be
20considered a single issue or series. Furthermore, for purposes
21of complying with the competitive bidding requirements of this
22Section, the words "at all times" shall not apply to any such
23sale of the State General Obligation Restructuring Bonds. The
24Director of the Governor's Office of Management and Budget
25shall determine the time and manner of any competitive sale of
26the State General Obligation Restructuring Bonds; however,

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1that sale shall under no circumstances take place later than 60
2days after the State closes the sale of 75% of the State
3General Obligation Restructuring Bonds by negotiated sale.
4(Source: P.A. 98-44, eff. 6-28-13; 99-523, eff. 6-30-16.)
5 (30 ILCS 330/12) (from Ch. 127, par. 662)
6 Sec. 12. Allocation of Proceeds from Sale of Bonds.
7 (a) Proceeds from the sale of Bonds, authorized by Section
83 of this Act, shall be deposited in the separate fund known as
9the Capital Development Fund.
10 (b) Proceeds from the sale of Bonds, authorized by
11paragraph (a) of Section 4 of this Act, shall be deposited in
12the separate fund known as the Transportation Bond, Series A
13Fund.
14 (c) Proceeds from the sale of Bonds, authorized by
15paragraphs (b) and (c) of Section 4 of this Act, shall be
16deposited in the separate fund known as the Transportation
17Bond, Series B Fund.
18 (c-1) Proceeds from the sale of Bonds, authorized by
19paragraph (d) of Section 4 of this Act, shall be deposited into
20the Transportation Bond Series D Fund, which is hereby created.
21 (d) Proceeds from the sale of Bonds, authorized by Section
225 of this Act, shall be deposited in the separate fund known as
23the School Construction Fund.
24 (e) Proceeds from the sale of Bonds, authorized by Section
256 of this Act, shall be deposited in the separate fund known as

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1the Anti-Pollution Fund.
2 (f) Proceeds from the sale of Bonds, authorized by Section
37 of this Act, shall be deposited in the separate fund known as
4the Coal Development Fund.
5 (f-2) Proceeds from the sale of Bonds, authorized by
6Section 7.2 of this Act, shall be deposited as set forth in
7Section 7.2.
8 (f-5) Proceeds from the sale of Bonds, authorized by
9Section 7.5 of this Act, shall be deposited as set forth in
10Section 7.5.
11 (f-7) Proceeds from the sale of Bonds, authorized by
12Section 7.6 of this Act, shall be deposited as set forth in
13Section 7.6.
14 (g) Proceeds from the sale of Bonds, authorized by Section
158 of this Act, shall be deposited in the Capital Development
16Fund.
17 (h) Subsequent to the issuance of any Bonds for the
18purposes described in Sections 2 through 8 of this Act, the
19Governor and the Director of the Governor's Office of
20Management and Budget may provide for the reallocation of
21unspent proceeds of such Bonds to any other purposes authorized
22under said Sections of this Act, subject to the limitations on
23aggregate principal amounts contained therein. Upon any such
24reallocation, such unspent proceeds shall be transferred to the
25appropriate funds as determined by reference to paragraphs (a)
26through (g) of this Section.

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1(Source: P.A. 96-36, eff. 7-13-09.)
2 (30 ILCS 330/13) (from Ch. 127, par. 663)
3 Sec. 13. Appropriation of Proceeds from Sale of Bonds.
4 (a) At all times, the proceeds from the sale of Bonds
5issued pursuant to this Act are subject to appropriation by the
6General Assembly and, except as provided in Sections Section
77.2 and 7.6, may be obligated or expended only with the written
8approval of the Governor, in such amounts, at such times, and
9for such purposes as the respective State agencies, as defined
10in Section 1-7 of the Illinois State Auditing Act, as amended,
11deem necessary or desirable for the specific purposes
12contemplated in Sections 2 through 8 of this Act.
13Notwithstanding any other provision of this Act, proceeds from
14the sale of Bonds issued pursuant to this Act appropriated by
15the General Assembly to the Architect of the Capitol may be
16obligated or expended by the Architect of the Capitol without
17the written approval of the Governor.
18 (b) Proceeds from the sale of Bonds for the purpose of
19development of coal and alternative forms of energy shall be
20expended in such amounts and at such times as the Department of
21Commerce and Economic Opportunity, with the advice and
22recommendation of the Illinois Coal Development Board for coal
23development projects, may deem necessary and desirable for the
24specific purpose contemplated by Section 7 of this Act. In
25considering the approval of projects to be funded, the

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1Department of Commerce and Economic Opportunity shall give
2special consideration to projects designed to remove sulfur and
3other pollutants in the preparation and utilization of coal,
4and in the use and operation of electric utility generating
5plants and industrial facilities which utilize Illinois coal as
6their primary source of fuel.
7 (c) Except as directed in subsection (c-1) or (c-2), any
8monies received by any officer or employee of the state
9representing a reimbursement of expenditures previously paid
10from general obligation bond proceeds shall be deposited into
11the General Obligation Bond Retirement and Interest Fund
12authorized in Section 14 of this Act.
13 (c-1) Any money received by the Department of
14Transportation as reimbursement for expenditures for high
15speed rail purposes pursuant to appropriations from the
16Transportation Bond, Series B Fund for (i) CREATE (Chicago
17Region Environmental and Transportation Efficiency), (ii) High
18Speed Rail, or (iii) AMTRAK projects authorized by the federal
19government under the provisions of the American Recovery and
20Reinvestment Act of 2009 or the Safe Accountable Flexible
21Efficient Transportation Equity Act—A Legacy for Users
22(SAFETEA-LU), or any successor federal transportation
23authorization Act, shall be deposited into the Federal High
24Speed Rail Trust Fund.
25 (c-2) Any money received by the Department of
26Transportation as reimbursement for expenditures for transit

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1capital purposes pursuant to appropriations from the
2Transportation Bond, Series B Fund for projects authorized by
3the federal government under the provisions of the American
4Recovery and Reinvestment Act of 2009 or the Safe Accountable
5Flexible Efficient Transportation Equity Act—A Legacy for
6Users (SAFETEA-LU), or any successor federal transportation
7authorization Act, shall be deposited into the Federal Mass
8Transit Trust Fund.
9(Source: P.A. 98-674, eff. 6-30-14.)
10 Section 99. Effective date. This Act takes effect upon
11becoming law.
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