Bill Text: IL SB2205 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Illinois Finance Authority Act. Authorizes the Illinois Finance Authority to issue bonds if the amount of accelerated pension benefit payments exceeds the amount appropriated to each pension system for those payments. 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. Authorizes $250,000,000 in State Pension Obligation Acceleration Bonds to be sold to pay for accelerated pension benefit payments to eligible persons. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act. Provides that, if State spending exceeds $31,374,000,000, then no member of the General Assembly shall receive any compensation for his or her service as a member of the General Assembly, including any salary, stipend, or per diem, for the remainder of the fiscal year or until such time as the Governor is presented with a bill or bills passed by the General Assembly to reduce State spending to a level that does not exceed the State spending limitation. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2017-04-28 - Added as Chief Co-Sponsor Sen. Dan McConchie [SB2205 Detail]

Download: Illinois-2017-SB2205-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2205

Introduced 4/27/2017, by Sen. Kyle McCarter

SYNOPSIS AS INTRODUCED:
See Index

Amends the Illinois Finance Authority Act. Authorizes the Illinois Finance Authority to issue bonds if the amount of accelerated pension benefit payments exceeds the amount appropriated to each pension system for those payments. 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. Authorizes $250,000,000 in State Pension Obligation Acceleration Bonds to be sold to pay for accelerated pension benefit payments to eligible persons. Amends the State Pension Funds Continuing Appropriation Act to create a continuing appropriation for payments on those Bonds. Amends the State Finance Act. Provides that, if State spending exceeds $31,374,000,000, then no member of the General Assembly shall receive any compensation for his or her service as a member of the General Assembly, including any salary, stipend, or per diem, for the remainder of the fiscal year or until such time as the Governor is presented with a bill or bills passed by the General Assembly to reduce State spending to a level that does not exceed the State spending limitation. Effective immediately.
LRB100 12262 HLH 24861 b
FISCAL NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

SB2205LRB100 12262 HLH 24861 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 3. The Illinois Finance Authority Act is amended by
9changing Section 801-40 as follows:
10 (20 ILCS 3501/801-40)
11 Sec. 801-40. In addition to the powers otherwise authorized
12by law and in addition to the foregoing general corporate
13powers, the Authority shall also have the following additional
14specific powers to be exercised in furtherance of the purposes
15of this Act.
16 (a) The Authority shall have power (i) to accept grants,
17loans or appropriations from the federal government or the
18State, or any agency or instrumentality thereof, to be used for
19the operating expenses of the Authority, or for any purposes of
20the Authority, including the making of direct loans of such
21funds with respect to projects, and (ii) to enter into any
22agreement with the federal government or the State, or any

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1agency or instrumentality thereof, in relationship to such
2grants, loans or appropriations.
3 (b) The Authority shall have power to procure and enter
4into contracts for any type of insurance and indemnity
5agreements covering loss or damage to property from any cause,
6including loss of use and occupancy, or covering any other
7insurable risk.
8 (c) The Authority shall have the continuing power to issue
9bonds for its corporate purposes. Bonds may be issued by the
10Authority in one or more series and may provide for the payment
11of any interest deemed necessary on such bonds, of the costs of
12issuance of such bonds, of any premium on any insurance, or of
13the cost of any guarantees, letters of credit or other similar
14documents, may provide for the funding of the reserves deemed
15necessary in connection with such bonds, and may provide for
16the refunding or advance refunding of any bonds or for accounts
17deemed necessary in connection with any purpose of the
18Authority. The bonds may bear interest payable at any time or
19times and at any rate or rates, notwithstanding any other
20provision of law to the contrary, and such rate or rates may be
21established by an index or formula which may be implemented or
22established by persons appointed or retained therefor by the
23Authority, or may bear no interest or may bear interest payable
24at maturity or upon redemption prior to maturity, may bear such
25date or dates, may be payable at such time or times and at such
26place or places, may mature at any time or times not later than

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140 years from the date of issuance, may be sold at public or
2private sale at such time or times and at such price or prices,
3may be secured by such pledges, reserves, guarantees, letters
4of credit, insurance contracts or other similar credit support
5or liquidity instruments, may be executed in such manner, may
6be subject to redemption prior to maturity, may provide for the
7registration of the bonds, and may be subject to such other
8terms and conditions all as may be provided by the resolution
9or indenture authorizing the issuance of such bonds. The holder
10or holders of any bonds issued by the Authority may bring suits
11at law or proceedings in equity to compel the performance and
12observance by any person or by the Authority or any of its
13agents or employees of any contract or covenant made with the
14holders of such bonds and to compel such person or the
15Authority and any of its agents or employees to perform any
16duties required to be performed for the benefit of the holders
17of any such bonds by the provision of the resolution
18authorizing their issuance, and to enjoin such person or the
19Authority and any of its agents or employees from taking any
20action in conflict with any such contract or covenant.
21Notwithstanding the form and tenor of any such bonds and in the
22absence of any express recital on the face thereof that it is
23non-negotiable, all such bonds shall be negotiable
24instruments. Pending the preparation and execution of any such
25bonds, temporary bonds may be issued as provided by the
26resolution. The bonds shall be sold by the Authority in such

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1manner as it shall determine. The bonds may be secured as
2provided in the authorizing resolution by the receipts,
3revenues, income and other available funds of the Authority and
4by any amounts derived by the Authority from the loan agreement
5or lease agreement with respect to the project or projects; and
6bonds may be issued as general obligations of the Authority
7payable from such revenues, funds and obligations of the
8Authority as the bond resolution shall provide, or may be
9issued as limited obligations with a claim for payment solely
10from such revenues, funds and obligations as the bond
11resolution shall provide. The Authority may grant a specific
12pledge or assignment of and lien on or security interest in
13such rights, revenues, income, or amounts and may grant a
14specific pledge or assignment of and lien on or security
15interest in any reserves, funds or accounts established in the
16resolution authorizing the issuance of bonds. Any such pledge,
17assignment, lien or security interest for the benefit of the
18holders of the Authority's bonds shall be valid and binding
19from the time the bonds are issued without any physical
20delivery or further act, and shall be valid and binding as
21against and prior to the claims of all other parties having
22claims against the Authority or any other person irrespective
23of whether the other parties have notice of the pledge,
24assignment, lien or security interest. As evidence of such
25pledge, assignment, lien and security interest, the Authority
26may execute and deliver a mortgage, trust agreement, indenture

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1or security agreement or an assignment thereof. A remedy for
2any breach or default of the terms of any such agreement by the
3Authority may be by mandamus proceedings in any court of
4competent jurisdiction to compel the performance and
5compliance therewith, but the agreement may prescribe by whom
6or on whose behalf such action may be instituted. It is
7expressly understood that the Authority may, but need not,
8acquire title to any project with respect to which it exercises
9its authority.
10 (c-5) Subject to the limitations set forth in this
11subsection (c-5), the Authority shall have the power to issue
12State Pension Obligation Acceleration Bonds if in any fiscal
13year the amount appropriated for all accelerated pension
14benefit payments is less than the amount required for those
15payments. The proceeds from the State Pension Obligation
16Acceleration Bonds issued under this subsection may be used
17only to pay for accelerated pension benefit payments for the
18fiscal year in which the State Pension Obligation Acceleration
19Bonds are issued.
20 The Authority may not issue more than $250,000,000 in State
21Pension Obligation Acceleration Bonds pursuant to the
22authority granted in this subsection (c-5), excluding bonds
23issued to refund outstanding State Pension Obligation
24Acceleration Bonds.
25 (d) With respect to the powers granted by this Act, the
26Authority may adopt rules and regulations prescribing the

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1procedures by which persons may apply for assistance under this
2Act. Nothing herein shall be deemed to preclude the Authority,
3prior to the filing of any formal application, from conducting
4preliminary discussions and investigations with respect to the
5subject matter of any prospective application.
6 (e) The Authority shall have power to acquire by purchase,
7lease, gift or otherwise any property or rights therein from
8any person useful for its purposes, whether improved for the
9purposes of any prospective project, or unimproved. The
10Authority may also accept any donation of funds for its
11purposes from any such source. The Authority shall have no
12independent power of condemnation but may acquire any property
13or rights therein obtained upon condemnation by any other
14authority, governmental entity or unit of local government with
15such power.
16 (f) The Authority shall have power to develop, construct
17and improve either under its own direction, or through
18collaboration with any approved applicant, or to acquire
19through purchase or otherwise, any project, using for such
20purpose the proceeds derived from the sale of its bonds or from
21governmental loans or grants, and to hold title in the name of
22the Authority to such projects.
23 (g) The Authority shall have power to lease pursuant to a
24lease agreement any project so developed and constructed or
25acquired to the approved tenant on such terms and conditions as
26may be appropriate to further the purposes of this Act and to

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1maintain the credit of the Authority. Any such lease may
2provide for either the Authority or the approved tenant to
3assume initially, in whole or in part, the costs of
4maintenance, repair and improvements during the leasehold
5period. In no case, however, shall the total rentals from any
6project during any initial leasehold period or the total loan
7repayments to be made pursuant to any loan agreement, be less
8than an amount necessary to return over such lease or loan
9period (1) all costs incurred in connection with the
10development, construction, acquisition or improvement of the
11project and for repair, maintenance and improvements thereto
12during the period of the lease or loan; provided, however, that
13the rentals or loan repayments need not include costs met
14through the use of funds other than those obtained by the
15Authority through the issuance of its bonds or governmental
16loans; (2) a reasonable percentage additive to be agreed upon
17by the Authority and the borrower or tenant to cover a properly
18allocable portion of the Authority's general expenses,
19including, but not limited to, administrative expenses,
20salaries and general insurance, and (3) an amount sufficient to
21pay when due all principal of, interest and premium, if any on,
22any bonds issued by the Authority with respect to the project.
23The portion of total rentals payable under clause (3) of this
24subsection (g) shall be deposited in such special accounts,
25including all sinking funds, acquisition or construction
26funds, debt service and other funds as provided by any

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1resolution, mortgage or trust agreement of the Authority
2pursuant to which any bond is issued.
3 (h) The Authority has the power, upon the termination of
4any leasehold period of any project, to sell or lease for a
5further term or terms such project on such terms and conditions
6as the Authority shall deem reasonable and consistent with the
7purposes of the Act. The net proceeds from all such sales and
8the revenues or income from such leases shall be used to
9satisfy any indebtedness of the Authority with respect to such
10project and any balance may be used to pay any expenses of the
11Authority or be used for the further development, construction,
12acquisition or improvement of projects. In the event any
13project is vacated by a tenant prior to the termination of the
14initial leasehold period, the Authority shall sell or lease the
15facilities of the project on the most advantageous terms
16available. The net proceeds of any such disposition shall be
17treated in the same manner as the proceeds from sales or the
18revenues or income from leases subsequent to the termination of
19any initial leasehold period.
20 (i) The Authority shall have the power to make loans to
21persons to finance a project, to enter into loan agreements
22with respect thereto, and to accept guarantees from persons of
23its loans or the resultant evidences of obligations of the
24Authority.
25 (j) The Authority may fix, determine, charge and collect
26any premiums, fees, charges, costs and expenses, including,

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1without limitation, any application fees, commitment fees,
2program fees, financing charges or publication fees from any
3person in connection with its activities under this Act.
4 (k) In addition to the funds established as provided
5herein, the Authority shall have the power to create and
6establish such reserve funds and accounts as may be necessary
7or desirable to accomplish its purposes under this Act and to
8deposit its available monies into the funds and accounts.
9 (l) At the request of the governing body of any unit of
10local government, the Authority is authorized to market such
11local government's revenue bond offerings by preparing bond
12issues for sale, advertising for sealed bids, receiving bids at
13its offices, making the award to the bidder that offers the
14most favorable terms or arranging for negotiated placements or
15underwritings of such securities. The Authority may, at its
16discretion, offer for concurrent sale the revenue bonds of
17several local governments. Sales by the Authority of revenue
18bonds under this Section shall in no way imply State guarantee
19of such debt issue. The Authority may require such financial
20information from participating local governments as it deems
21necessary in order to carry out the purposes of this subsection
22(1).
23 (m) The Authority may make grants to any county to which
24Division 5-37 of the Counties Code is applicable to assist in
25the financing of capital development, construction and
26renovation of new or existing facilities for hospitals and

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1health care facilities under that Act. Such grants may only be
2made from funds appropriated for such purposes from the Build
3Illinois Bond Fund.
4 (n) The Authority may establish an urban development action
5grant program for the purpose of assisting municipalities in
6Illinois which are experiencing severe economic distress to
7help stimulate economic development activities needed to aid in
8economic recovery. The Authority shall determine the types of
9activities and projects for which the urban development action
10grants may be used, provided that such projects and activities
11are broadly defined to include all reasonable projects and
12activities the primary objectives of which are the development
13of viable urban communities, including decent housing and a
14suitable living environment, and expansion of economic
15opportunity, principally for persons of low and moderate
16incomes. The Authority shall enter into grant agreements from
17monies appropriated for such purposes from the Build Illinois
18Bond Fund. The Authority shall monitor the use of the grants,
19and shall provide for audits of the funds as well as recovery
20by the Authority of any funds determined to have been spent in
21violation of this subsection (n) or any rule or regulation
22promulgated hereunder. The Authority shall provide technical
23assistance with regard to the effective use of the urban
24development action grants. The Authority shall file an annual
25report to the General Assembly concerning the progress of the
26grant program.

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1 (o) The Authority may establish a Housing Partnership
2Program whereby the Authority provides zero-interest loans to
3municipalities for the purpose of assisting in the financing of
4projects for the rehabilitation of affordable multi-family
5housing for low and moderate income residents. The Authority
6may provide such loans only upon a municipality's providing
7evidence that it has obtained private funding for the
8rehabilitation project. The Authority shall provide 3 State
9dollars for every 7 dollars obtained by the municipality from
10sources other than the State of Illinois. The loans shall be
11made from monies appropriated for such purpose from the Build
12Illinois Bond Fund. The total amount of loans available under
13the Housing Partnership Program shall not exceed $30,000,000.
14State loan monies under this subsection shall be used only for
15the acquisition and rehabilitation of existing buildings
16containing 4 or more dwelling units. The terms of any loan made
17by the municipality under this subsection shall require
18repayment of the loan to the municipality upon any sale or
19other transfer of the project.
20 (p) The Authority may award grants to universities and
21research institutions, research consortiums and other
22not-for-profit entities for the purposes of: remodeling or
23otherwise physically altering existing laboratory or research
24facilities, expansion or physical additions to existing
25laboratory or research facilities, construction of new
26laboratory or research facilities or acquisition of modern

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1equipment to support laboratory or research operations
2provided that such grants (i) be used solely in support of
3project and equipment acquisitions which enhance technology
4transfer, and (ii) not constitute more than 60 percent of the
5total project or acquisition cost.
6 (q) Grants may be awarded by the Authority to units of
7local government for the purpose of developing the appropriate
8infrastructure or defraying other costs to the local government
9in support of laboratory or research facilities provided that
10such grants may not exceed 40% of the cost to the unit of local
11government.
12 (r) The Authority may establish a Direct Loan Program to
13make loans to individuals, partnerships or corporations for the
14purpose of an industrial project, as defined in Section 801-10
15of this Act. For the purposes of such program and not by way of
16limitation on any other program of the Authority, the Authority
17shall have the power to issue bonds, notes, or other evidences
18of indebtedness including commercial paper for purposes of
19providing a fund of capital from which it may make such loans.
20The Authority shall have the power to use any appropriations
21from the State made especially for the Authority's Direct Loan
22Program for additional capital to make such loans or for the
23purposes of reserve funds or pledged funds which secure the
24Authority's obligations of repayment of any bond, note or other
25form of indebtedness established for the purpose of providing
26capital for which it intends to make such loans under the

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1Direct Loan Program. For the purpose of obtaining such capital,
2the Authority may also enter into agreements with financial
3institutions and other persons for the purpose of selling loans
4and developing a secondary market for such loans. Loans made
5under the Direct Loan Program may be in an amount not to exceed
6$300,000 and shall be made for a portion of an industrial
7project which does not exceed 50% of the total project. No loan
8may be made by the Authority unless approved by the affirmative
9vote of at least 8 members of the board. The Authority shall
10establish procedures and publish rules which shall provide for
11the submission, review, and analysis of each direct loan
12application and which shall preserve the ability of each board
13member to reach an individual business judgment regarding the
14propriety of making each direct loan. The collective discretion
15of the board to approve or disapprove each loan shall be
16unencumbered. The Authority may establish and collect such fees
17and charges, determine and enforce such terms and conditions,
18and charge such interest rates as it determines to be necessary
19and appropriate to the successful administration of the Direct
20Loan Program. The Authority may require such interests in
21collateral and such guarantees as it determines are necessary
22to project the Authority's interest in the repayment of the
23principal and interest of each loan made under the Direct Loan
24Program.
25 (s) The Authority may guarantee private loans to third
26parties up to a specified dollar amount in order to promote

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1economic development in this State.
2 (t) The Authority may adopt rules and regulations as may be
3necessary or advisable to implement the powers conferred by
4this Act.
5 (u) The Authority shall have the power to issue bonds,
6notes or other evidences of indebtedness, which may be used to
7make loans to units of local government which are authorized to
8enter into loan agreements and other documents and to issue
9bonds, notes and other evidences of indebtedness for the
10purpose of financing the protection of storm sewer outfalls,
11the construction of adequate storm sewer outfalls, and the
12provision for flood protection of sanitary sewage treatment
13plans, in counties that have established a stormwater
14management planning committee in accordance with Section
155-1062 of the Counties Code. Any such loan shall be made by the
16Authority pursuant to the provisions of Section 820-5 to 820-60
17of this Act. The unit of local government shall pay back to the
18Authority the principal amount of the loan, plus annual
19interest as determined by the Authority. The Authority shall
20have the power, subject to appropriations by the General
21Assembly, to subsidize or buy down a portion of the interest on
22such loans, up to 4% per annum.
23 (v) The Authority may accept security interests as provided
24in Sections 11-3 and 11-3.3 of the Illinois Public Aid Code.
25 (w) Moral Obligation. In the event that the Authority
26determines that monies of the Authority will not be sufficient

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1for the payment of the principal of and interest on its bonds
2during the next State fiscal year, the Chairperson, as soon as
3practicable, shall certify to the Governor the amount required
4by the Authority to enable it to pay such principal of and
5interest on the bonds. The Governor shall submit the amount so
6certified to the General Assembly as soon as practicable, but
7no later than the end of the current State fiscal year. This
8subsection shall apply only to any bonds or notes as to which
9the Authority shall have determined, in the resolution
10authorizing the issuance of the bonds or notes, that this
11subsection shall apply. Whenever the Authority makes such a
12determination, that fact shall be plainly stated on the face of
13the bonds or notes and that fact shall also be reported to the
14Governor. In the event of a withdrawal of moneys from a reserve
15fund established with respect to any issue or issues of bonds
16of the Authority to pay principal or interest on those bonds,
17the Chairperson of the Authority, as soon as practicable, shall
18certify to the Governor the amount required to restore the
19reserve fund to the level required in the resolution or
20indenture securing those bonds. The Governor shall submit the
21amount so certified to the General Assembly as soon as
22practicable, but no later than the end of the current State
23fiscal year. The Authority shall obtain written approval from
24the Governor for any bonds and notes to be issued under this
25Section. In addition to any other bonds authorized to be issued
26under Sections 825-60, 825-65(e), 830-25 and 845-5, the

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1principal amount of Authority bonds outstanding issued under
2this Section 801-40(w) or under 20 ILCS 3850/1-80 or 30 ILCS
3360/2-6(c), which have been assumed by the Authority, shall not
4exceed $150,000,000. This subsection (w) shall in no way be
5applied to any bonds issued by the Authority on behalf of the
6Illinois Power Agency under Section 825-90 of this Act.
7 (x) The Authority may enter into agreements or contracts
8with any person necessary or appropriate to place the payment
9obligations of the Authority under any of its bonds in whole or
10in part on any interest rate basis, cash flow basis, or other
11basis desired by the Authority, including without limitation
12agreements or contracts commonly known as "interest rate swap
13agreements", "forward payment conversion agreements", and
14"futures", or agreements or contracts to exchange cash flows or
15a series of payments, or agreements or contracts, including
16without limitation agreements or contracts commonly known as
17"options", "puts", or "calls", to hedge payment, rate spread,
18or similar exposure; provided that any such agreement or
19contract shall not constitute an obligation for borrowed money
20and shall not be taken into account under Section 845-5 of this
21Act or any other debt limit of the Authority or the State of
22Illinois.
23 (y) The Authority shall publish summaries of projects and
24actions approved by the members of the Authority on its
25website. These summaries shall include, but not be limited to,
26information regarding the:

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1 (1) project;
2 (2) Board's action or actions;
3 (3) purpose of the project;
4 (4) Authority's program and contribution;
5 (5) volume cap;
6 (6) jobs retained;
7 (7) projected new jobs;
8 (8) construction jobs created;
9 (9) estimated sources and uses of funds;
10 (10) financing summary;
11 (11) project summary;
12 (12) business summary;
13 (13) ownership or economic disclosure statement;
14 (14) professional and financial information;
15 (15) service area; and
16 (16) legislative district.
17 The disclosure of information pursuant to this subsection
18shall comply with the Freedom of Information Act.
19(Source: P.A. 95-470, eff. 8-27-07; 95-481, eff. 8-28-07;
2095-876, eff. 8-21-08; 96-795, eff. 7-1-10 (see Section 5 of
21P.A. 96-793 for the effective date of changes made by P.A.
2296-795).)
23 Section 4. The State Finance Act is amended by adding
24Sections 5.878 and 14.3 as follows:

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1 (30 ILCS 105/5.878 new)
2 Sec. 5.878. The State Pension Obligation Acceleration Bond
3Fund.
4 (30 ILCS 105/14.3 new)
5 Sec. 14.3. Spending limitation.
6 (a) If, in State fiscal years 2018 through 2025, State
7spending exceeds the State spending limitation set forth in
8subsection (b) of this Section, then no member of the General
9Assembly shall receive any compensation for his or her service
10as a member of the General Assembly, including any salary,
11stipend, or per diem, for the remainder of the fiscal year or
12until such time as the Governor is presented with a bill or
13bills passed by the General Assembly to reduce State spending
14to a level that does not exceed the State spending limitation,
15whichever occurs sooner.
16 (b) The State spending limitation for each fiscal year
17specified in subsection (a) is $31,374,000,000.
18 (c) Notwithstanding any other provision of law to the
19contrary, the Auditor General shall examine each Public Act
20authorizing State spending from State general funds and prepare
21a report no later than 30 days after receiving notification of
22the Public Act from the Secretary of State or 60 days after the
23effective date of the Public Act, whichever is earlier. The
24Auditor General shall file the report with the Secretary of
25State and copies with the Governor, the State Treasurer, the

SB2205- 19 -LRB100 12262 HLH 24861 b
1State Comptroller, the Senate, and the House of
2Representatives. The report shall indicate: (i) the amount of
3State spending set forth in the applicable Public Act; (ii) the
4total amount of State spending authorized by law for the
5applicable fiscal year as of the date of the report; and (iii)
6whether State spending exceeds the State spending limitation
7set forth in subsection (b). The Auditor General may examine
8multiple Public Acts in one consolidated report, provided that
9each Public Act is examined within the time period mandated by
10this subsection (c). The Auditor General shall issue reports in
11accordance with this Section through June 30, 2025.
12 At the request of the Auditor General, each State agency
13shall, without delay, make available to the Auditor General or
14his or her designated representative any record or information
15requested and shall provide for examination or copying all
16records, accounts, papers, reports, vouchers, correspondence,
17books and other documentation in the custody of that agency,
18including information stored in electronic data processing
19systems, which is related to or within the scope of a report
20prepared under this Section. The Auditor General shall report
21to the Governor each instance in which a State agency fails to
22cooperate promptly and fully with his or her office as required
23by this Section.
24 The Auditor General's report shall not be in the nature of
25a post-audit or examination and shall not lead to the issuance
26of an opinion as that term is defined in generally accepted

SB2205- 20 -LRB100 12262 HLH 24861 b
1government auditing standards.
2 (d) If the Auditor General reports that State spending has
3exceeded the State spending limitation set forth in subsection
4(b) and if the Governor has not been presented with a bill or
5bills passed by the General Assembly to reduce State spending
6to a level that does not exceed the State spending limitation
7within 45 calendar days of receipt of the Auditor General's
8report, then the Governor may, for the purpose of reducing
9State spending to a level that does not exceed the State
10spending limitation set forth in subsection (b), designate
11amounts to be set aside as a reserve from the amounts
12appropriated from the State general funds for all boards,
13commissions, agencies, institutions, authorities, colleges,
14universities, and bodies politic and corporate of the State,
15but not other constitutional officers, the legislative or
16judicial branch, the office of the Executive Inspector General,
17or the Executive Ethics Commission. Such a designation must be
18made within 15 calendar days after the end of that 45-day
19period. If the Governor designates amounts to be set aside as a
20reserve, the Governor shall give notice of the designation to
21the Auditor General, the State Treasurer, the State
22Comptroller, the Senate, and the House of Representatives. The
23amounts placed in reserves shall not be transferred, obligated,
24encumbered, expended, or otherwise committed unless so
25authorized by law. Any amount placed in reserves is not State
26spending and shall not be considered when calculating the total

SB2205- 21 -LRB100 12262 HLH 24861 b
1amount of State spending. Any Public Act authorizing the use of
2amounts placed in reserve by the Governor is considered State
3spending, unless such Public Act authorizes the use of amounts
4placed in reserves in response to a fiscal emergency under
5subsection (g).
6 (e) If the Auditor General reports under subsection (c)
7that State spending has exceeded the State spending limitation
8set forth in subsection (b), then the Auditor General shall
9issue a supplemental report no sooner than the 61st day and no
10later than the 65th day after issuing the report pursuant to
11subsection (c). The supplemental report shall: (i) summarize
12details of actions taken by the General Assembly and the
13Governor after the issuance of the initial report to reduce
14State spending, if any, (ii) indicate whether the level of
15State spending has changed since the initial report, and (iii)
16indicate whether State spending exceeds the State spending
17limitation. The Auditor General shall file the report with the
18Secretary of State and copies with the Governor, the State
19Treasurer, the State Comptroller, the Senate, and the House of
20Representatives. If the supplemental report of the Auditor
21General provides that State spending exceeds the State spending
22limitation, then the compensation of members of the General
23Assembly shall be withheld in accordance with subsection (a)
24beginning with the first pay period after the issuance of the
25supplemental report.
26 (f) Notwithstanding the State spending limitation set

SB2205- 22 -LRB100 12262 HLH 24861 b
1forth in subsection (b) of this Section, the Governor may
2declare a fiscal emergency by filing a declaration with the
3Secretary of State and copies with the State Treasurer, the
4State Comptroller, the Senate, and the House of
5Representatives. The declaration must be limited to only one
6State fiscal year, set forth compelling reasons for declaring a
7fiscal emergency, and request a specific dollar amount. Unless,
8within 10 calendar days of receipt of the Governor's
9declaration, the State Comptroller or State Treasurer notifies
10the Senate and the House of Representatives that he or she does
11not concur in the Governor's declaration, State spending
12authorized by law to address the fiscal emergency in an amount
13no greater than the dollar amount specified in the declaration
14shall not be considered "State spending" for purposes of the
15State spending limitation.
16 (g) As used in this Section:
17 "State general funds" means the General Revenue Fund, the
18Common School Fund, the General Revenue Common School Special
19Account Fund, the Education Assistance Fund, and the Budget
20Stabilization Fund.
21 "State spending" means (i) the total amount authorized for
22spending by appropriation or statutory transfer from the State
23general funds in the applicable fiscal year, and (ii) any
24amounts the Governor places in reserves in accordance with
25subsection (d) that are subsequently released from reserves
26following authorization by a Public Act. For the purpose of

SB2205- 23 -LRB100 12262 HLH 24861 b
1this definition, "appropriation" means authority to spend
2money from a State general fund for a specific amount, purpose,
3and time period, including any supplemental appropriation or
4continuing appropriation, but does not include
5reappropriations from a previous fiscal year. For the purpose
6of this definition, "statutory transfer" means authority to
7transfer funds from one State general fund to any other fund in
8the State treasury, but does not include transfers made from
9one State general fund to another State general fund.
10 "State spending limitation" means the amount described in
11subsection (b) of this Section for the applicable fiscal year.
12 Section 5. The General Obligation Bond Act is amended by
13changing Sections 2, 2.5, 9, 11, 12, and 13 and by adding
14Sections 7.6 and 7.7 as follows:
15 (30 ILCS 330/2) (from Ch. 127, par. 652)
16 Sec. 2. Authorization for Bonds. The State of Illinois is
17authorized to issue, sell and provide for the retirement of
18General Obligation Bonds of the State of Illinois for the
19categories and specific purposes expressed in Sections 2
20through 8 of this Act, in the total amount of $57,167,925,743
21$49,917,925,743.
22 The bonds authorized in this Section 2 and in Section 16 of
23this Act are herein called "Bonds".
24 Of the total amount of Bonds authorized in this Act, up to

SB2205- 24 -LRB100 12262 HLH 24861 b
1$2,200,000,000 in aggregate original principal amount may be
2issued and sold in accordance with the Baccalaureate Savings
3Act 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
6issued and sold in accordance with the Retirement Savings Act
7in the form of General Obligation Retirement Savings Bonds.
8 Of the total amount of Bonds authorized in this Act, the
9additional $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
12solely as provided in Section 7.2.
13 Of the total amount of Bonds authorized in this Act, the
14additional $7,000,000,000 authorized by Section 7.6 shall be
15used solely as provided in Section 7.6 and shall be issued by
16September 1, 2017.
17 Of the total amount of Bonds authorized in this Act, the
18additional $250,000,000 authorized by Section 7.7 shall be used
19solely as provided in Section 7.7.
20 The issuance and sale of Bonds pursuant to the General
21Obligation Bond Act is an economical and efficient method of
22financing the long-term capital needs of the State. This Act
23will permit the issuance of a multi-purpose General Obligation
24Bond with uniform terms and features. This will not only lower
25the cost of registration but also reduce the overall cost of
26issuing debt by improving the marketability of Illinois General

SB2205- 25 -LRB100 12262 HLH 24861 b
1Obligation Bonds.
2(Source: P.A. 97-333, eff. 8-12-11; 97-771, eff. 7-10-12;
397-813, eff. 7-13-12; 98-94, eff. 7-17-13; 98-463, eff.
48-16-13; 98-781, eff. 7-22-14.)
5 (30 ILCS 330/2.5)
6 Sec. 2.5. Limitation on issuance of Bonds.
7 (a) Except as provided in subsection (b), no Bonds may be
8issued if, after the issuance, in the next State fiscal year
9after the issuance of the Bonds, the amount of debt service
10(including principal, whether payable at maturity or pursuant
11to mandatory sinking fund installments, and interest) on all
12then-outstanding Bonds, other than (i) Bonds authorized by this
13amendatory Act of the 100th General Assembly, (ii) Bonds issued
14authorized by Public Act 96-43, and (iii) other than Bonds
15authorized by Public Act 96-1497, would exceed 7% of the
16aggregate appropriations from the general funds (which consist
17of the General Revenue Fund, the Common School Fund, the
18General Revenue Common School Special Account Fund, and the
19Education Assistance Fund) and the Road Fund for the fiscal
20year immediately prior to the fiscal year of the issuance.
21 (b) If the Comptroller and Treasurer each consent in
22writing, Bonds may be issued even if the issuance does not
23comply with subsection (a). In addition, $2,000,000,000 in
24Bonds for the purposes set forth in Sections 3, 4, 5, 6, and 7,
25and $2,000,000,000 in Refunding Bonds under Section 16, may be

SB2205- 26 -LRB100 12262 HLH 24861 b
1issued during State fiscal year 2017 without complying with
2subsection (a).
3(Source: P.A. 99-523, eff. 6-30-16.)
4 (30 ILCS 330/7.6 new)
5 Sec. 7.6. State General Obligation Restructuring Bonds.
6 (a) As used in this Act, "State General Obligation
7Restructuring Bonds" means Bonds (i) authorized by this
8amendatory Act of the 100th General Assembly or any other
9Public Act of the 100th General Assembly authorizing the
10issuance of State General Obligation Restructuring Bonds and
11(ii) used for the payment of unpaid obligations of the State as
12incurred from time to time and as authorized by the General
13Assembly.
14 (b) State General Obligation Restructuring Bonds in the
15amount of $7,000,000,000 are hereby authorized to be used for
16purpose of paying vouchers incurred by the State prior to July
171, 2017.
18 (c) The proceeds of State General Obligation Restructuring
19Bonds authorized in subsection (b) of this Section, less the
20amounts authorized in the Bond Sale Order to be deposited
21directly into the capitalized interest account of the General
22Obligation Bond Retirement and Interest Fund or otherwise
23directly paid out for bond sale expenses under Section 8, shall
24be deposited into the General Revenue Fund, and the Comptroller
25and the Treasurer shall, as soon as practical, make payments as

SB2205- 27 -LRB100 12262 HLH 24861 b
1contemplated by this Section.
2 (30 ILCS 330/7.7 new)
3 Sec. 7.7. State Pension Obligation Acceleration Bonds.
4 (a) As used in this Act, "State Pension Obligation
5Acceleration Bonds" means Bonds authorized by this amendatory
6Act of the 100th General Assembly and used for the purposes set
7forth in subsection (c-5) of Section 801-40 of the Illinois
8Finance Authority Act.
9 (b) State Pension Obligation Acceleration Bonds in the
10amount of $250,000,000 are hereby authorized to be used for the
11purposes set forth in subsection (c-5) of Section 801-40 of the
12Illinois Finance Authority Act.
13 (c) The proceeds of State Pension Obligation Acceleration
14Bonds authorized in subsection (b) of this Section, less the
15amounts authorized in the Bond Sale Order to be directly paid
16out for bond sale expenses under Section 8, shall be deposited
17directly into the State Pension Obligation Acceleration Bond
18Fund, and the Comptroller and the Treasurer shall, as soon as
19practical, make payments as contemplated by subsection (c-5) of
20Section 801-40 of the Illinois Finance Authority Act.
21 (d) There is created the State Pension Obligation
22Acceleration Bond Fund as a special fund in the State Treasury.
23Funds deposited in the State Pension Obligation Acceleration
24Bond Fund may only be used for the purposes set forth in
25subsection (c-5) of Section 801-40 of the Illinois Finance

SB2205- 28 -LRB100 12262 HLH 24861 b
1Authority Act or for the payment of principal and interest due
2on State Pension Obligation Acceleration Bonds.
3 (30 ILCS 330/9) (from Ch. 127, par. 659)
4 Sec. 9. Conditions for Issuance and Sale of Bonds -
5Requirements for Bonds.
6 (a) Except as otherwise provided in this subsection and
7subsections (h) and (i), Bonds shall be issued and sold from
8time to time, in one or more series, in such amounts and at
9such prices as may be directed by the Governor, upon
10recommendation by the Director of the Governor's Office of
11Management and Budget. Bonds shall be in such form (either
12coupon, registered or book entry), in such denominations,
13payable within 25 years from their date, subject to such terms
14of redemption with or without premium, bear interest payable at
15such times and at such fixed or variable rate or rates, and be
16dated as shall be fixed and determined by the Director of the
17Governor's Office of Management and Budget in the order
18authorizing the issuance and sale of any series of Bonds, which
19order shall be approved by the Governor and is herein called a
20"Bond Sale Order"; provided however, that interest payable at
21fixed or variable rates shall not exceed that permitted in the
22Bond Authorization Act, as now or hereafter amended. Bonds
23shall be payable at such place or places, within or without the
24State of Illinois, and may be made registrable as to either
25principal or as to both principal and interest, as shall be

SB2205- 29 -LRB100 12262 HLH 24861 b
1specified in the Bond Sale Order. Bonds may be callable or
2subject to purchase and retirement or tender and remarketing as
3fixed and determined in the Bond Sale Order. Bonds, other than
4Bonds issued under Section 3 of this Act for the costs
5associated with the purchase and implementation of information
6technology, (i) except for refunding Bonds satisfying the
7requirements of Section 16 of this Act and sold during fiscal
8year 2009, 2010, 2011, or 2017 must be issued with principal or
9mandatory redemption amounts in equal amounts, with the first
10maturity issued occurring within the fiscal year in which the
11Bonds are issued or within the next succeeding fiscal year and
12(ii) must mature or be subject to mandatory redemption each
13fiscal year thereafter up to 25 years, except for refunding
14Bonds satisfying the requirements of Section 16 of this Act and
15sold during fiscal year 2009, 2010, or 2011 which must mature
16or be subject to mandatory redemption each fiscal year
17thereafter up to 16 years. Bonds issued under Section 3 of this
18Act for the costs associated with the purchase and
19implementation of information technology must be issued with
20principal or mandatory redemption amounts in equal amounts,
21with the first maturity issued occurring with the fiscal year
22in which the respective bonds are issued or with the next
23succeeding fiscal year, with the respective bonds issued
24maturing or subject to mandatory redemption each fiscal year
25thereafter up to 10 years. Notwithstanding any provision of
26this Act to the contrary, the Bonds authorized by Public Act

SB2205- 30 -LRB100 12262 HLH 24861 b
196-43 shall be payable within 5 years from their date and must
2be issued with principal or mandatory redemption amounts in
3equal amounts, with payment of principal or mandatory
4redemption beginning in the first fiscal year following the
5fiscal year in which the Bonds are issued.
6 Notwithstanding any provision of this Act to the contrary,
7the Bonds authorized by Public Act 96-1497 shall be payable
8within 8 years from their date and shall be issued with payment
9of maturing principal or scheduled mandatory redemptions in
10accordance with the following schedule, except the following
11amounts shall be prorated if less than the total additional
12amount of Bonds authorized by Public Act 96-1497 are issued:
13 Fiscal Year After Issuance Amount
14 1-2 $0
15 3 $110,712,120
16 4 $332,136,360
17 5 $664,272,720
18 6-8 $996,409,080
19 Notwithstanding any provision of this Act to the contrary,
20State General Obligation Restructuring Bonds issued under
21Section 7.6 shall be payable within 7 years from the date of
22sale and shall be issued with payment of principal or mandatory
23redemption as set forth in subsection (h) of this Section.
24 In the case of any series of Bonds bearing interest at a
25variable interest rate ("Variable Rate Bonds"), in lieu of
26determining the rate or rates at which such series of Variable

SB2205- 31 -LRB100 12262 HLH 24861 b
1Rate Bonds shall bear interest and the price or prices at which
2such Variable Rate Bonds shall be initially sold or remarketed
3(in the event of purchase and subsequent resale), the Bond Sale
4Order may provide that such interest rates and prices may vary
5from time to time depending on criteria established in such
6Bond Sale Order, which criteria may include, without
7limitation, references to indices or variations in interest
8rates as may, in the judgment of a remarketing agent, be
9necessary to cause Variable Rate Bonds of such series to be
10remarketable from time to time at a price equal to their
11principal amount, and may provide for appointment of a bank,
12trust company, investment bank, or other financial institution
13to serve as remarketing agent in that connection. The Bond Sale
14Order may provide that alternative interest rates or provisions
15for establishing alternative interest rates, different
16security or claim priorities, or different call or amortization
17provisions will apply during such times as Variable Rate Bonds
18of any series are held by a person providing credit or
19liquidity enhancement arrangements for such Bonds as
20authorized in subsection (b) of this Section. The Bond Sale
21Order may also provide for such variable interest rates to be
22established pursuant to a process generally known as an auction
23rate process and may provide for appointment of one or more
24financial institutions to serve as auction agents and
25broker-dealers in connection with the establishment of such
26interest rates and the sale and remarketing of such Bonds.

SB2205- 32 -LRB100 12262 HLH 24861 b
1 (b) In connection with the issuance of any series of Bonds,
2the State may enter into arrangements to provide additional
3security and liquidity for such Bonds, including, without
4limitation, bond or interest rate insurance or letters of
5credit, lines of credit, bond purchase contracts, or other
6arrangements whereby funds are made available to retire or
7purchase Bonds, thereby assuring the ability of owners of the
8Bonds to sell or redeem their Bonds. The State may enter into
9contracts and may agree to pay fees to persons providing such
10arrangements, but only under circumstances where the Director
11of the Governor's Office of Management and Budget certifies
12that he or she reasonably expects the total interest paid or to
13be paid on the Bonds, together with the fees for the
14arrangements (being treated as if interest), would not, taken
15together, cause the Bonds to bear interest, calculated to their
16stated maturity, at a rate in excess of the rate that the Bonds
17would bear in the absence of such arrangements.
18 The State may, with respect to Bonds issued or anticipated
19to be issued, participate in and enter into arrangements with
20respect to interest rate protection or exchange agreements,
21guarantees, or financial futures contracts for the purpose of
22limiting, reducing, or managing interest rate exposure. The
23authority granted under this paragraph, however, shall not
24increase the principal amount of Bonds authorized to be issued
25by law. The arrangements may be executed and delivered by the
26Director of the Governor's Office of Management and Budget on

SB2205- 33 -LRB100 12262 HLH 24861 b
1behalf of the State. Net payments for such arrangements shall
2constitute interest on the Bonds and shall be paid from the
3General Obligation Bond Retirement and Interest Fund. The
4Director of the Governor's Office of Management and Budget
5shall at least annually certify to the Governor and the State
6Comptroller his or her estimate of the amounts of such net
7payments to be included in the calculation of interest required
8to be paid by the State.
9 (c) Prior to the issuance of any Variable Rate Bonds
10pursuant to subsection (a), the Director of the Governor's
11Office of Management and Budget shall adopt an interest rate
12risk management policy providing that the amount of the State's
13variable rate exposure with respect to Bonds shall not exceed
1420%. This policy shall remain in effect while any Bonds are
15outstanding and the issuance of Bonds shall be subject to the
16terms of such policy. The terms of this policy may be amended
17from time to time by the Director of the Governor's Office of
18Management and Budget but in no event shall any amendment cause
19the permitted level of the State's variable rate exposure with
20respect to Bonds to exceed 20%.
21 (d) "Build America Bonds" in this Section means Bonds
22authorized by Section 54AA of the Internal Revenue Code of
231986, as amended ("Internal Revenue Code"), and bonds issued
24from time to time to refund or continue to refund "Build
25America Bonds".
26 (e) Notwithstanding any other provision of this Section,

SB2205- 34 -LRB100 12262 HLH 24861 b
1Qualified School Construction Bonds shall be issued and sold
2from time to time, in one or more series, in such amounts and
3at such prices as may be directed by the Governor, upon
4recommendation by the Director of the Governor's Office of
5Management and Budget. Qualified School Construction Bonds
6shall 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, and if the Qualified School Construction Bonds are
10issued with a supplemental coupon, bear interest payable at
11such times and at such fixed or variable rate or rates, and be
12dated as shall be fixed and determined by the Director of the
13Governor's Office of Management and Budget in the order
14authorizing the issuance and sale of any series of Qualified
15School Construction Bonds, which order shall be approved by the
16Governor and is herein called a "Bond Sale Order"; except that
17interest payable at fixed or variable rates, if any, shall not
18exceed that permitted in the Bond Authorization Act, as now or
19hereafter amended. Qualified School Construction Bonds shall
20be payable at such place or places, within or without the State
21of Illinois, and may be made registrable as to either principal
22or as to both principal and interest, as shall be specified in
23the Bond Sale Order. Qualified School Construction Bonds may be
24callable or subject to purchase and retirement or tender and
25remarketing as fixed and determined in the Bond Sale Order.
26Qualified School Construction Bonds must be issued with

SB2205- 35 -LRB100 12262 HLH 24861 b
1principal or mandatory redemption amounts or sinking fund
2payments into the General Obligation Bond Retirement and
3Interest Fund (or subaccount therefor) in equal amounts, with
4the first maturity issued, mandatory redemption payment or
5sinking fund payment occurring within the fiscal year in which
6the Qualified School Construction Bonds are issued or within
7the next succeeding fiscal year, with Qualified School
8Construction Bonds issued maturing or subject to mandatory
9redemption or with sinking fund payments thereof deposited each
10fiscal year thereafter up to 25 years. Sinking fund payments
11set forth in this subsection shall be permitted only to the
12extent authorized in Section 54F of the Internal Revenue Code
13or as otherwise determined by the Director of the Governor's
14Office of Management and Budget. "Qualified School
15Construction Bonds" in this subsection means Bonds authorized
16by Section 54F of the Internal Revenue Code and for bonds
17issued from time to time to refund or continue to refund such
18"Qualified School Construction Bonds".
19 (f) Beginning with the next issuance by the Governor's
20Office of Management and Budget to the Procurement Policy Board
21of a request for quotation for the purpose of formulating a new
22pool of qualified underwriting banks list, all entities
23responding to such a request for quotation for inclusion on
24that list shall provide a written report to the Governor's
25Office of Management and Budget and the Illinois Comptroller.
26The written report submitted to the Comptroller shall (i) be

SB2205- 36 -LRB100 12262 HLH 24861 b
1published on the Comptroller's Internet website and (ii) be
2used by the Governor's Office of Management and Budget for the
3purposes of scoring such a request for quotation. The written
4report, at a minimum, shall:
5 (1) disclose whether, within the past 3 months,
6 pursuant to its credit default swap market-making
7 activities, the firm has entered into any State of Illinois
8 credit default swaps ("CDS");
9 (2) include, in the event of State of Illinois CDS
10 activity, disclosure of the firm's cumulative notional
11 volume of State of Illinois CDS trades and the firm's
12 outstanding gross and net notional amount of State of
13 Illinois CDS, as of the end of the current 3-month period;
14 (3) indicate, pursuant to the firm's proprietary
15 trading activities, disclosure of whether the firm, within
16 the past 3 months, has entered into any proprietary trades
17 for its own account in State of Illinois CDS;
18 (4) include, in the event of State of Illinois
19 proprietary trades, disclosure of the firm's outstanding
20 gross and net notional amount of proprietary State of
21 Illinois CDS and whether the net position is short or long
22 credit protection, as of the end of the current 3-month
23 period;
24 (5) list all time periods during the past 3 months
25 during which the firm held net long or net short State of
26 Illinois CDS proprietary credit protection positions, the

SB2205- 37 -LRB100 12262 HLH 24861 b
1 amount of such positions, and whether those positions were
2 net long or net short credit protection positions; and
3 (6) indicate whether, within the previous 3 months, the
4 firm released any publicly available research or marketing
5 reports that reference State of Illinois CDS and include
6 those research or marketing reports as attachments.
7 (g) All entities included on a Governor's Office of
8Management and Budget's pool of qualified underwriting banks
9list shall, as soon as possible after March 18, 2011 (the
10effective date of Public Act 96-1554), but not later than
11January 21, 2011, and on a quarterly fiscal basis thereafter,
12provide a written report to the Governor's Office of Management
13and Budget and the Illinois Comptroller. The written reports
14submitted to the Comptroller shall be published on the
15Comptroller's Internet website. The written reports, at a
16minimum, shall:
17 (1) disclose whether, within the past 3 months,
18 pursuant to its credit default swap market-making
19 activities, the firm has entered into any State of Illinois
20 credit default swaps ("CDS");
21 (2) include, in the event of State of Illinois CDS
22 activity, disclosure of the firm's cumulative notional
23 volume of State of Illinois CDS trades and the firm's
24 outstanding gross and net notional amount of State of
25 Illinois CDS, as of the end of the current 3-month period;
26 (3) indicate, pursuant to the firm's proprietary

SB2205- 38 -LRB100 12262 HLH 24861 b
1 trading activities, disclosure of whether the firm, within
2 the past 3 months, has entered into any proprietary trades
3 for its own account in State of Illinois CDS;
4 (4) include, in the event of State of Illinois
5 proprietary trades, disclosure of the firm's outstanding
6 gross and net notional amount of proprietary State of
7 Illinois CDS and whether the net position is short or long
8 credit protection, as of the end of the current 3-month
9 period;
10 (5) list all time periods during the past 3 months
11 during which the firm held net long or net short State of
12 Illinois CDS proprietary credit protection positions, the
13 amount of such positions, and whether those positions were
14 net long or net short credit protection positions; and
15 (6) indicate whether, within the previous 3 months, the
16 firm released any publicly available research or marketing
17 reports that reference State of Illinois CDS and include
18 those research or marketing reports as attachments.
19 (h) Notwithstanding any other provision of this Section,
20for purposes of maximizing market efficiencies and cost
21savings, State General Obligation Restructuring Bonds may be
22issued and sold from time to time, in one or more series, in
23such amounts and at such prices as may be directed by the
24Governor, upon recommendation by the Director of the Governor's
25Office of Management and Budget. State General Obligation
26Restructuring Bonds shall be in such form, either coupon,

SB2205- 39 -LRB100 12262 HLH 24861 b
1registered, or book entry, in such denominations, shall bear
2interest payable at such times and at such fixed or variable
3rate or rates, and be dated as shall be fixed and determined by
4the Director of the Governor's Office of Management and Budget
5in the order authorizing the issuance and sale of any series of
6State General Obligation Restructuring Bonds, which order
7shall be approved by the Governor and is herein called a "Bond
8Sale Order"; provided, however, that interest payable at fixed
9or variable rates shall not exceed that permitted in the Bond
10Authorization Act. State General Obligation Restructuring
11Bonds shall be payable at such place or places, within or
12without the State of Illinois, and may be made registrable as
13to either principal or as to both principal and interest, as
14shall be specified in the Bond Sale Order. State General
15Obligation Restructuring Bonds may be callable or subject to
16purchase and retirement or tender and remarketing as fixed and
17determined in the Bond Sale Order.
18 The aggregate principal and interest amounts of State
19General Obligation Restructuring Bonds authorized by and
20issued pursuant to this amendatory Act of the 100th General
21Assembly or other such amendatory Acts of the 100th General
22Assembly authorizing the issuance of State General Obligation
23Restructuring Bonds shall, in the aggregate, mature or be
24subject to redemption in the annual percentages set forth in
25the following schedule:
26 (1) for fiscal year 2019, 14.2857%;

SB2205- 40 -LRB100 12262 HLH 24861 b
1 (2) for fiscal year 2020, 14.2857%;
2 (3) for fiscal year 2021, 14.2857%;
3 (4) for fiscal year 2022, 14.2857%;
4 (5) for fiscal year 2023, 14.2857%;
5 (6) for fiscal year 2024, 14.2857%; and
6 (7) for fiscal year 2025, 14.2858%.
7 Notwithstanding the foregoing, the principal amounts
8calculated above shall be in increments of $5,000. Moreover,
9the percentages set forth in items (1) through (7) shall be
10applicable to the aggregate principal amount of State General
11Obligation Restructuring Bonds authorized by this amendatory
12Act of the 100th General Assembly and any other amendatory Acts
13of the 100th General Assembly authorizing State General
14Obligation Restructuring Bonds. While individual series of
15State General Obligation Restructuring Bonds as may be sold
16from time to time need not be scheduled to mature or be subject
17to redemption in accordance with the percentages above,
18redemptions whether by maturity or sinking fund, in any fiscal
19year for all State General Obligation Restructuring Bonds, in
20the aggregate, shall be no less than the percentages shown
21above. Notwithstanding the foregoing, in the event that fewer
22than all of the State General Obligation Restructuring Bonds
23authorized by this amendatory Act of the 100th General Assembly
24have been issued by September 1, 2017, failure of the
25then-outstanding State General Obligation Restructuring Bonds
26to satisfy the repayment schedule set forth above shall not

SB2205- 41 -LRB100 12262 HLH 24861 b
1affect the validity of any of those outstanding Bonds.
2 (i) Notwithstanding any other provision of this Section,
3for purposes of maximizing market efficiencies and cost
4savings, State Pension Obligation Acceleration Bonds may be
5issued and sold from time to time, in one or more series, in
6such amounts and at such prices as may be directed by the
7Governor, upon recommendation by the Director of the Governor's
8Office of Management and Budget. State Pension Obligation
9Acceleration Bonds shall be in such form, either coupon,
10registered, or book entry, in such denominations, shall bear
11interest payable at such times and at such fixed or variable
12rate or rates, and be dated as shall be fixed and determined by
13the Director of the Governor's Office of Management and Budget
14in the order authorizing the issuance and sale of any series of
15State Pension Obligation Acceleration Bonds, which order shall
16be approved by the Governor and is herein called a "Bond Sale
17Order"; provided, however, that interest payable at fixed or
18variable rates shall not exceed that permitted in the Bond
19Authorization Act. State Pension Obligation Acceleration Bonds
20shall be payable at such place or places, within or without the
21State of Illinois, and may be made registrable as to either
22principal or as to both principal and interest, as shall be
23specified in the Bond Sale Order. State Pension Obligation
24Acceleration Bonds may be callable or subject to purchase and
25retirement or tender and remarketing as fixed and determined in
26the Bond Sale Order.

SB2205- 42 -LRB100 12262 HLH 24861 b
1(Source: P.A. 99-523, eff. 6-30-16.)
2 (30 ILCS 330/11) (from Ch. 127, par. 661)
3 Sec. 11. Sale of Bonds. Except as otherwise provided in
4this Section, Bonds shall be sold from time to time pursuant to
5notice of sale and public bid or by negotiated sale in such
6amounts and at such times as is directed by the Governor, upon
7recommendation by the Director of the Governor's Office of
8Management and Budget. At least 25%, based on total principal
9amount, of all Bonds issued each fiscal year shall be sold
10pursuant to notice of sale and public bid. At all times during
11each fiscal year, no more than 75%, based on total principal
12amount, of the Bonds issued each fiscal year, shall have been
13sold by negotiated sale. Failure to satisfy the requirements in
14the preceding 2 sentences shall not affect the validity of any
15previously issued Bonds; provided that all Bonds authorized by
16Public Act 96-43 and Public Act 96-1497 shall not be included
17in determining compliance for any fiscal year with the
18requirements of the preceding 2 sentences; and further provided
19that refunding Bonds satisfying the requirements of Section 16
20of this Act and sold during fiscal year 2009, 2010, 2011, or
212017 shall not be subject to the requirements in the preceding
222 sentences.
23 If any Bonds, including refunding Bonds, are to be sold by
24negotiated sale, the Director of the Governor's Office of
25Management and Budget shall comply with the competitive request

SB2205- 43 -LRB100 12262 HLH 24861 b
1for proposal process set forth in the Illinois Procurement Code
2and all other applicable requirements of that Code.
3 If Bonds are to be sold pursuant to notice of sale and
4public bid, the Director of the Governor's Office of Management
5and Budget may, from time to time, as Bonds are to be sold,
6advertise the sale of the Bonds in at least 2 daily newspapers,
7one of which is published in the City of Springfield and one in
8the City of Chicago. The sale of the Bonds shall also be
9advertised in the volume of the Illinois Procurement Bulletin
10that is published by the Department of Central Management
11Services, and shall be published once at least 10 days prior to
12the date fixed for the opening of the bids. The Director of the
13Governor's Office of Management and Budget may reschedule the
14date of sale upon the giving of such additional notice as the
15Director deems adequate to inform prospective bidders of such
16change; provided, however, that all other conditions of the
17sale shall continue as originally advertised.
18 Executed Bonds shall, upon payment therefor, be delivered
19to the purchaser, and the proceeds of Bonds shall be paid into
20the State Treasury as directed by Section 12 of this Act.
21 All State General Obligation Restructuring Bonds shall
22comply with this Section. Notwithstanding anything to the
23contrary, however, for purposes of complying with this Section,
24State General Obligation Restructuring Bonds, regardless of
25the number of series or issuances sold thereunder, shall be
26considered a single issue or series. Furthermore, for purposes

SB2205- 44 -LRB100 12262 HLH 24861 b
1of complying with the competitive bidding requirements of this
2Section, the words "at all times" shall not apply to any such
3sale of the State General Obligation Restructuring Bonds. The
4Director of the Governor's Office of Management and Budget
5shall determine the time and manner of any competitive sale of
6the State General Obligation Restructuring Bonds; however,
7that sale shall under no circumstances take place later than 60
8days after the State closes the sale of 75% of the State
9General Obligation Restructuring Bonds by negotiated sale.
10 All State Pension Obligation Acceleration Bonds shall
11comply with this Section. Notwithstanding anything to the
12contrary, however, for purposes of complying with this Section,
13State Pension Obligation Acceleration Bonds, regardless of the
14number of series or issuances sold thereunder, shall be
15considered a single issue or series. Furthermore, for purposes
16of complying with the competitive bidding requirements of this
17Section, the words "at all times" shall not apply to any such
18sale of the State Pension Obligation Acceleration Bonds. The
19Director of the Governor's Office of Management and Budget
20shall determine the time and manner of any competitive sale of
21the State Pension Obligation Acceleration Bonds; however, that
22sale shall under no circumstances take place later than 60 days
23after the State closes the sale of 75% of the State Pension
24Obligation Acceleration Bonds by negotiated sale.
25(Source: P.A. 98-44, eff. 6-28-13; 99-523, eff. 6-30-16.)

SB2205- 45 -LRB100 12262 HLH 24861 b
1 (30 ILCS 330/12) (from Ch. 127, par. 662)
2 Sec. 12. Allocation of Proceeds from Sale of Bonds.
3 (a) Proceeds from the sale of Bonds, authorized by Section
43 of this Act, shall be deposited in the separate fund known as
5the Capital Development Fund.
6 (b) Proceeds from the sale of Bonds, authorized by
7paragraph (a) of Section 4 of this Act, shall be deposited in
8the separate fund known as the Transportation Bond, Series A
9Fund.
10 (c) Proceeds from the sale of Bonds, authorized by
11paragraphs (b) and (c) of Section 4 of this Act, shall be
12deposited in the separate fund known as the Transportation
13Bond, Series B Fund.
14 (c-1) Proceeds from the sale of Bonds, authorized by
15paragraph (d) of Section 4 of this Act, shall be deposited into
16the Transportation Bond Series D Fund, which is hereby created.
17 (d) Proceeds from the sale of Bonds, authorized by Section
185 of this Act, shall be deposited in the separate fund known as
19the School Construction Fund.
20 (e) Proceeds from the sale of Bonds, authorized by Section
216 of this Act, shall be deposited in the separate fund known as
22the Anti-Pollution Fund.
23 (f) Proceeds from the sale of Bonds, authorized by Section
247 of this Act, shall be deposited in the separate fund known as
25the Coal Development Fund.
26 (f-2) Proceeds from the sale of Bonds, authorized by

SB2205- 46 -LRB100 12262 HLH 24861 b
1Section 7.2 of this Act, shall be deposited as set forth in
2Section 7.2.
3 (f-5) Proceeds from the sale of Bonds, authorized by
4Section 7.5 of this Act, shall be deposited as set forth in
5Section 7.5.
6 (f-6) Proceeds from the sale of Bonds, authorized by
7Section 7.6 of this Act, shall be deposited as set forth in
8Section 7.6.
9 (f-7) Proceeds from the sale of Bonds, authorized by
10Section 7.7 of this Act, shall be deposited as set forth in
11Section 7.7.
12 (g) Proceeds from the sale of Bonds, authorized by Section
138 of this Act, shall be deposited in the Capital Development
14Fund.
15 (h) Subsequent to the issuance of any Bonds for the
16purposes described in Sections 2 through 8 of this Act, the
17Governor and the Director of the Governor's Office of
18Management and Budget may provide for the reallocation of
19unspent proceeds of such Bonds to any other purposes authorized
20under said Sections of this Act, subject to the limitations on
21aggregate principal amounts contained therein. Upon any such
22reallocation, such unspent proceeds shall be transferred to the
23appropriate funds as determined by reference to paragraphs (a)
24through (g) of this Section.
25(Source: P.A. 96-36, eff. 7-13-09.)

SB2205- 47 -LRB100 12262 HLH 24861 b
1 (30 ILCS 330/13) (from Ch. 127, par. 663)
2 Sec. 13. Appropriation of Proceeds from Sale of Bonds.
3 (a) At all times, the proceeds from the sale of Bonds
4issued pursuant to this Act are subject to appropriation by the
5General Assembly and, except as provided in Sections Section
67.2, 7.6, and 7.7, may be obligated or expended only with the
7written approval of the Governor, in such amounts, at such
8times, and for such purposes as the respective State agencies,
9as defined in Section 1-7 of the Illinois State Auditing Act,
10as amended, deem necessary or desirable for the specific
11purposes contemplated in Sections 2 through 8 of this Act.
12Notwithstanding any other provision of this Act, proceeds from
13the sale of Bonds issued pursuant to this Act appropriated by
14the General Assembly to the Architect of the Capitol may be
15obligated or expended by the Architect of the Capitol without
16the written approval of the Governor.
17 (b) Proceeds from the sale of Bonds for the purpose of
18development of coal and alternative forms of energy shall be
19expended in such amounts and at such times as the Department of
20Commerce and Economic Opportunity, with the advice and
21recommendation of the Illinois Coal Development Board for coal
22development projects, may deem necessary and desirable for the
23specific purpose contemplated by Section 7 of this Act. In
24considering the approval of projects to be funded, the
25Department of Commerce and Economic Opportunity shall give
26special consideration to projects designed to remove sulfur and

SB2205- 48 -LRB100 12262 HLH 24861 b
1other pollutants in the preparation and utilization of coal,
2and in the use and operation of electric utility generating
3plants and industrial facilities which utilize Illinois coal as
4their primary source of fuel.
5 (c) Except as directed in subsection (c-1) or (c-2), any
6monies received by any officer or employee of the state
7representing a reimbursement of expenditures previously paid
8from general obligation bond proceeds shall be deposited into
9the General Obligation Bond Retirement and Interest Fund
10authorized in Section 14 of this Act.
11 (c-1) Any money received by the Department of
12Transportation as reimbursement for expenditures for high
13speed rail purposes pursuant to appropriations from the
14Transportation Bond, Series B Fund for (i) CREATE (Chicago
15Region Environmental and Transportation Efficiency), (ii) High
16Speed Rail, or (iii) AMTRAK projects authorized by the federal
17government under the provisions of the American Recovery and
18Reinvestment Act of 2009 or the Safe Accountable Flexible
19Efficient Transportation Equity Act—A Legacy for Users
20(SAFETEA-LU), or any successor federal transportation
21authorization Act, shall be deposited into the Federal High
22Speed Rail Trust Fund.
23 (c-2) Any money received by the Department of
24Transportation as reimbursement for expenditures for transit
25capital purposes pursuant to appropriations from the
26Transportation Bond, Series B Fund for projects authorized by

SB2205- 49 -LRB100 12262 HLH 24861 b
1the federal government under the provisions of the American
2Recovery and Reinvestment Act of 2009 or the Safe Accountable
3Flexible Efficient Transportation Equity Act—A Legacy for
4Users (SAFETEA-LU), or any successor federal transportation
5authorization Act, shall be deposited into the Federal Mass
6Transit Trust Fund.
7(Source: P.A. 98-674, eff. 6-30-14.)
8 Section 10. The State Pension Funds Continuing
9Appropriation Act is amended by adding Section 1.10 as follows:
10 (40 ILCS 15/1.10 new)
11 Sec. 1.10. Appropriations for State Pension Obligation
12Acceleration Bonds. If for any reason the aggregate
13appropriations made available are insufficient to meet the
14levels required for the payment of principal and interest due
15on State Pension Obligation Acceleration Bonds under Section
167.7 of the General Obligation Bond Act, this Section shall
17constitute a continuing appropriation of all amounts necessary
18for those purposes.
19 Section 99. Effective date. This Act takes effect upon
20becoming law.

SB2205- 50 -LRB100 12262 HLH 24861 b
1 INDEX
2 Statutes amended in order of appearance