Bill Text: IL HB0374 | 2013-2014 | 98th General Assembly | Engrossed

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Bill Title: Amends the Bond Authorization Act. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 29-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB0374 Detail]

Download: Illinois-2013-HB0374-Engrossed.html

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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.826 as follows:
(30 ILCS 105/5.826 new)
Sec. 5.826. The Human Services Provider Payment Fund.
Section 10. The General Obligation Bond Act is amended by
changing Sections 2, 2.5 and 12 and by adding Section 7.6 as
follows:
(30 ILCS 330/2) (from Ch. 127, par. 652)
Sec. 2. Authorization for Bonds. The State of Illinois is
authorized to issue, sell and provide for the retirement of
General Obligation Bonds of the State of Illinois for the
categories and specific purposes expressed in Sections 2
through 8 of this Act, in the total amount of $49,592,925,743
$47,092,925,743 $45,476,125,743.
The bonds authorized in this Section 2 and in Section 16 of
this Act are herein called "Bonds".
Of the total amount of Bonds authorized in this Act, up to
$2,200,000,000 in aggregate original principal amount may be

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issued and sold in accordance with the Baccalaureate Savings
Act in the form of General Obligation College Savings Bonds.
Of the total amount of Bonds authorized in this Act, up to
$300,000,000 in aggregate original principal amount may be
issued and sold in accordance with the Retirement Savings Act
in the form of General Obligation Retirement Savings Bonds.
Of the total amount of Bonds authorized in this Act, the
additional $10,000,000,000 authorized by Public Act 93-2, the
$3,466,000,000 authorized by Public Act 96-43, and the
$4,096,348,300 authorized by Public Act 96-1497 shall be used
solely as provided in Section 7.2.
The issuance and sale of Bonds pursuant to the General
Obligation Bond Act is an economical and efficient method of
financing the long-term capital needs of the State. This Act
will permit the issuance of a multi-purpose General Obligation
Bond with uniform terms and features. This will not only lower
the cost of registration but also reduce the overall cost of
issuing debt by improving the marketability of Illinois General
Obligation Bonds.
(Source: P.A. 96-5, eff. 4-3-09; 96-36, eff. 7-13-09; 96-43,
eff. 7-15-09; 96-885, eff. 3-11-10; 96-1000, eff. 7-2-10;
96-1497, eff. 1-14-11; 96-1554, eff. 3-18-11; 97-333, eff.
8-12-11; 97-771, eff. 7-10-12; 97-813, eff. 7-13-12; revised
7-23-12.)
(30 ILCS 330/2.5)

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Sec. 2.5. Limitation on issuance of Bonds.
(a) Except as provided in subsection (b) and in Section
7.6, no Bonds may be issued if, after the issuance, in the next
State fiscal year after the issuance of the Bonds, the amount
of debt service (including principal, whether payable at
maturity or pursuant to mandatory sinking fund installments,
and interest) on all then-outstanding Bonds, other than Bonds
authorized by Public Act 96-43 and other than Bonds authorized
by this amendatory Act of the 96th General Assembly, would
exceed 7% of the aggregate appropriations from the general
funds (which consist of the General Revenue Fund, the Common
School Fund, the General Revenue Common School Special Account
Fund, and the Education Assistance Fund) and the Road Fund for
the fiscal year immediately prior to the fiscal year of the
issuance.
(b) If the Comptroller and Treasurer each consent in
writing, Bonds may be issued even if the issuance does not
comply with subsection (a).
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11.)
(30 ILCS 330/7.6 new)
Sec. 7.6. Payments to bona fide creditors.
(a) The amount of $2,500,000,000 is authorized to be used
for the purpose of making payments to bona fide creditors of
the State who: (1) have submitted a bill or invoice to the
State that was properly approved under rules adopted under

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Section 3-3 of the State Prompt Payment Act or (2) are entitled
to payment from State funds. For the purposes of this Section,
the term "bona fide creditor" includes, but is not limited to,
healthcare providers, human service providers, and any entity
paid from a grant line by the Department of Healthcare and
Family Services, the Department of Human Services, the
Department of Children and Family Service, the Department of
Public Health, or the Department on Aging. The proceeds of the
additional $2,500,000,000 of bonds authorized by this
amendatory Act of the 98th General Assembly shall not be used
to pay contributions to any pension or retirement system of the
State, any unit of local government or school district, or any
agency or instrumentality thereof.
(b) The proceeds of the additional $2,500,000,000 of bonds
authorized by this amendatory Act of the 98th General Assembly,
less the amounts directly paid out for bond sale expenses under
Section 8, shall be deposited into the Human Service Provider
Payment Fund, a special fund created in the State Treasury.
Moneys in the Human Service Provider Payment Fund shall be used
to make payments to bona fide creditors of the State, as
defined in subsection (a). Priority will be given to payments
that receive Federal Medical Assistance Percentage (FMAP) up to
$2,000,000,000 of the total amount authorized. The federal
proceeds garnered from the payment of these bills shall be
deposited directly into the General Obligation Bond Retirement
and Interest Fund and used to pay the principal debt associated

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with the bonds authorized under this Section. Funds remaining
after payments are made that receive FMAP shall be prioritized
according to the date on which the debt first became
delinquent, with the oldest debts to be paid first.
(c) The Human Service Provider Payment Fund is not subject
administrative charges or chargebacks, including, but not
limited to, those authorized under Section 8h of the State
Finance Act.
(d) Any federal proceeds received from FMAP for the payment
of bills shall be deposited directly into the General
Obligation Bond Retirement and Interest Fund. The Comptroller
shall use these funds to pay the principal on the debt incurred
under this Section no later than 30 days after FMAP proceeds
are deposited into the General Obligation Bond Retirement and
Interest Fund.
(30 ILCS 330/12) (from Ch. 127, par. 662)
Sec. 12. Allocation of Proceeds from Sale of Bonds.
(a) Proceeds from the sale of Bonds, authorized by Section
3 of this Act, shall be deposited in the separate fund known as
the Capital Development Fund.
(b) Proceeds from the sale of Bonds, authorized by
paragraph (a) of Section 4 of this Act, shall be deposited in
the separate fund known as the Transportation Bond, Series A
Fund.
(c) Proceeds from the sale of Bonds, authorized by

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paragraphs (b) and (c) of Section 4 of this Act, shall be
deposited in the separate fund known as the Transportation
Bond, Series B Fund.
(c-1) Proceeds from the sale of Bonds, authorized by
paragraph (d) of Section 4 of this Act, shall be deposited into
the Transportation Bond Series D Fund, which is hereby created.
(d) Proceeds from the sale of Bonds, authorized by Section
5 of this Act, shall be deposited in the separate fund known as
the School Construction Fund.
(e) Proceeds from the sale of Bonds, authorized by Section
6 of this Act, shall be deposited in the separate fund known as
the Anti-Pollution Fund.
(f) Proceeds from the sale of Bonds, authorized by Section
7 of this Act, shall be deposited in the separate fund known as
the Coal Development Fund.
(f-2) Proceeds from the sale of Bonds, authorized by
Section 7.2 of this Act, shall be deposited as set forth in
Section 7.2.
(f-5) Proceeds from the sale of Bonds, authorized by
Section 7.5 of this Act, shall be deposited as set forth in
Section 7.5.
(f-6) Proceeds from the sale of Bonds authorized by Section
7.6 of this Act shall be deposited as set forth in Section 7.6.
(g) Proceeds from the sale of Bonds, authorized by Section
8 of this Act, shall be deposited in the Capital Development
Fund.

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(h) Subsequent to the issuance of any Bonds for the
purposes described in Sections 2 through 8 of this Act, the
Governor and the Director of the Governor's Office of
Management and Budget may provide for the reallocation of
unspent proceeds of such Bonds to any other purposes authorized
under said Sections of this Act, subject to the limitations on
aggregate principal amounts contained therein. Upon any such
reallocation, such unspent proceeds shall be transferred to the
appropriate funds as determined by reference to paragraphs (a)
through (g) of this Section.
(Source: P.A. 96-36, eff. 7-13-09.)