Public Act 093-1046
 		





SB2263 Enrolled
LRB093 15838 RCE 41455 b






    AN ACT concerning finance. 

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 


 
    Section 1. Findings; purpose; validation.  
    (a) The General Assembly finds and declares that:
        (1) Public Act 88-669, effective November 29, 1994, 
    contained provisions amending the Casual Deficit Act, 
    including changing the name of that Act to the Short Term 
    Borrowing Act. Public Act 88-669 also contained other 
    provisions. The Short Term Borrowing Act has subsequently 
    been amended by Public Act 93-674. 
        (2) Questions have been raised concerning the validity 
    and content of the Short Term Borrowing Act.  The provisions 
    of the Short Term Borrowing Act are of vital concern to the 
    people of this State. Prompt legislative action concerning 
    those provisions is necessary to ensure their continued 
    effect.
    (b) The purpose of this Act is to re-enact the Short Term 
Borrowing Act, as amended by Public Acts 88-669 and 93-674, and 
to make revisory changes. This re-enactment is intended to 
remove any question as to the validity and content of those 
provisions and to validate all actions taken in reliance on 
those provisions; it is not intended to supersede any other 
Public Act that amends the text of the Short Term Borrowing Act 
as set forth in this Act. The re-enacted material is shown in 
this Act as existing text (i.e., without underscoring), and the 
revisory changes are shown by striking and underscoring.
    (c) The re-enactment by this amendatory Act of the 93rd 
General Assembly of the Short Term Borrowing Act is not 
intended, and shall not be construed, to imply that Public Act 
88-669 or 93-674 is invalid or to limit or impair any legal 
argument concerning whether those provisions were 
substantially re-enacted  by other Public Acts. 
    (d) All otherwise lawful actions taken before the effective 
date of this amendatory Act of the 93rd General Assembly in 
reliance on or pursuant to the provisions re-enacted by this 
amendatory Act of the 93rd General Assembly, as set forth in 
Public Act 88-669, or as subsequently amended, by any officer, 
employee, or agency of State government or by any other person 
or entity, are hereby validated. These actions include, but are 
not limited to: borrowing; bidding, awarding, contracting, and 
incurring debt; issuance and sale of certificates, bonds, and 
other instruments for the payment of money; application of 
moneys; transfer and deposit of moneys; and repayment of 
principal and interest and other legal costs and expenses.
    (e) This amendatory Act of the 93rd General Assembly 
applies, without limitation, to actions pending on or after the 
effective date of this amendatory Act.
 
    Section 5. The Short Term Borrowing Act is amended  by 
re-enacting Sections 0.01, 1, and 1.1 and by re-enacting and 
changing Sections 2 and 3 as follows:
 



    (30 ILCS 340/0.01)  (from Ch. 120, par. 405H)



    Sec. 0.01. Short title. This Act may be cited as the
Short 
Term Borrowing Act.

(Source: P.A. 88-669, eff. 11-29-94.)

 



    (30 ILCS 340/1)  (from Ch. 120, par. 406)



    Sec. 1. Cash flow borrowing. Whenever significant timing 
variations
occur between disbursement and receipt of budgeted 
funds within a fiscal year,
making it necessary to borrow in 
anticipation of revenues to be collected in a
fiscal year,
in 
order to meet the same, the Governor, Comptroller and Treasurer

may contract debts, in an amount not exceeding 5%
of the 
State's appropriations for that fiscal year, and moneys thus 
borrowed
shall be applied to the purpose for which they were 
obtained, or to pay the
debts thus created, and to no other 
purpose. All moneys so borrowed shall be
repaid by the close of 
the fiscal year in which borrowed.

(Source: P.A. 88-669, eff. 11-29-94.)

 



    (30 ILCS 340/1.1)



    Sec. 1.1. Borrowing upon failures in revenue. Whenever 
failures in
revenues of the State occur, in order to meet those 
failures, the Governor,
Comptroller, and Treasurer may 
contract debts in an amount
not exceeding 15% of the State's 
appropriations for that fiscal year.  The
moneys thus borrowed 
shall be applied to the purposes for which they were
obtained, 
or to pay the debts thus created by the borrowing, and to no 
other
purpose.  Before incurring debt under this Section, the 
Governor shall give
written notice to the Clerk of the House of 
Representatives, the Secretary of
the Senate, and the Secretary 
of State setting forth the reasons for the
proposed borrowing 
and the corrective measures recommended to restore the
State's 
fiscal soundness.  The notice shall be a public record and open 
for
inspection at the offices of the Secretary of State during 
normal business
hours. No debt may be incurred under this 
Section until 30 days after the
notice is served.  All moneys so 
borrowed shall be borrowed for no longer time
than one year.

(Source: P.A. 88-669, eff. 11-29-94.)

 



    (30 ILCS 340/2)  (from Ch. 120, par. 407)



    Sec. 2. Sale of certificates. For borrowing authorized 
under Sections 1
and 1.1 of this Act, certificates may be 
issued and sold from time to time, in
one or more series, in 
amounts, at prices and at interest rates, all as
directed by 
the Governor, Comptroller, and Treasurer.  Bidders shall submit

sealed bids to the
Director of the
Governor's Office of 
Management and Budget
Bureau of the Budget upon such terms as 
shall be approved by
the Governor, Comptroller, and Treasurer 
after such notice as shall be
determined to be reasonable by 
the Director of the
Governor's Office of Management and Budget

Bureau of the Budget.  The
loan shall be awarded to the bidder 
offering the lowest effective rate of
interest not exceeding 
the maximum rate authorized by the Bond Authorization
Act as 
amended at the time of the making of the contract.

    With respect to instruments for the payment of money issued 
under this
Section either before, on, or after the effective 
date of this amendatory
Act of 1989, it is and always has been 
the intention of the General
Assembly (i) that the Omnibus Bond 
Acts are and always have been
supplementary grants of power to 
issue instruments in accordance with the
Omnibus Bond Acts, 
regardless of any provision of this Act that may appear
to be 
or to have been more restrictive than those Acts, (ii) that the

provisions of this Section are not a limitation on the 
supplementary
authority granted by the Omnibus Bond Acts, and 
(iii) that instruments
issued under this Section within the 
supplementary authority granted
by the Omnibus Bond Acts are 
not invalid because of any provision of
this Act that may 
appear to be or to have been more restrictive than
those Acts.

(Source: P.A. 88-669, eff. 11-29-94; revised 8-23-03.)

 



    (30 ILCS 340/3)  (from Ch. 120, par. 408)


    Sec. 3. There shall be prepared under the direction of the 
officers
named in this Act such form of bonds or certificates 
as they shall deem
advisable, which, when issued, shall be 
signed by the Governor, Comptroller
and Treasurer, and shall be 
recorded by the Comptroller in a
book to be kept by him or her 
for that purpose.  The interest and principal
of such loan shall 
be paid by the treasurer out of the General Obligation Bond

Retirement and Interest Fund.

    There is hereby appropriated out of any money in the 
Treasury a sum
sufficient for the payment of the interest and 
principal of any debts
contracted under this Act.

    The Governor, Comptroller, and Treasurer are
authorized to 
order pursuant to the proceedings authorizing those debts the

transfer of any moneys on deposit in the treasury into the 
General
Obligation Bond Retirement and Interest Fund at times 
and in amounts they
deem necessary to provide for the payment 
of that interest and principal.

    The Comptroller is hereby authorized and directed to draw 
his warrant on
the State Treasurer for the amount of all such 
payments.

    The directive authorizing borrowing under Section 1 or 1.1 
of this Act
shall set forth a pro forma cash flow statement 
that identifies estimated
monthly receipts and expenditures 
with identification of sources for
repaying the borrowed funds.

    All proceeds from any borrowing under this Act received by 
the State on or after June 10, 2004
the effective date of this 
amendatory Act of the 93rd General Assembly and before July 1, 
2004 shall be deposited into the Medicaid Provider Relief Fund.

(Source: P.A. 88-669, eff. 11-29-94; 93-674, eff. 6-10-04.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.