SB3431 97TH GENERAL ASSEMBLY

LRB097 19175 HLH 64417 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3431

Introduced 2/7/2012, by Sen. Mike Jacobs

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.811 new
30 ILCS 105/5.812 new

Creates the Titanium General Obligation Bond Act. Provides for the issuance, sale, and retirement of general obligation bonds, the proceeds of which shall be allocated to Illinois companies who produce, manufacture, or substantially use titanium powdered metals. Provides for the conditions of sale of the bonds, the expenditure and investment of proceeds from the sale of the bonds, and the manner of repayment of the bonds. Creates the Titanium Powdered Metals Development Fund and the Titanium Powdered Metals Development Bond Retirement and Interest Fund. Provides for a civil action to compel payment upon default. Amends the State Finance Act. Designates the Titanium Powdered Metals Development Fund and the Titanium Powdered Metals Development Bond Retirement and Interest Fund as special funds. Effective immediately.

FISCAL NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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

Section 1. Short title. This Act may be cited as the Titanium General Obligation Bond Act.

Section 5. Bonds. The State of Illinois is authorized to issue, sell, and provide for the retirement of general obligation bonds of the State of Illinois in the aggregate principal amount of $25,000,000, hereafter called "bonds", the proceeds of which shall be allocated to companies in Illinois who produce, manufacture, or substantially use titanium powdered metals for the specific purposes of infrastructure, engineering, legal, design, qualified experts, and research and development.

Section 10. Sale of bonds. The bonds shall be issued and sold from time to time in such amounts as directed by the Governor, upon recommendation by the Director of the Governor's Office of Management and Budget. The bonds shall be serial bonds in the denomination of $5,000 or some multiple thereof, shall be payable within 30 years from their date, shall bear interest payable annually or semiannually from their date at the rate of not more than 15% per annum, or such higher maximum rate as may be authorized by the Bond Authorization Act, shall be dated, and shall be in such form as the Director of the Governor's Office of Management and Budget shall fix and determine in the order authorizing the issuance and sale of the bonds, which order shall be approved by the Governor prior to the giving of notice of the sale of any of the bonds. These bonds shall be payable as to both principal and interest at such place or places, within or without the State of Illinois, and may be registrable as to either principal or as to both principal and interest, as shall be fixed and determined by the Director of the Governor's Office of Management and Budget in the order authorizing the issuance and sale of the bonds, provided, however, that the State shall not pay a premium of more than 3% of the principal of any bonds so called.

Section 15. Authentication of bonds. The bonds shall be signed by the Governor and attested by the Secretary of State under the printed facsimile seal of the State and countersigned by hand by the Treasurer or by his duly appointed deputy. The signatures of the Governor and the Secretary of State may be printed facsimile signatures. Interest coupons with facsimile signatures of the Governor, Secretary of State, and Treasurer may be attached to the bonds. The fact that an officer whose signature or facsimile thereof appears on a bond or interest coupon no longer holds such office at the time the bond of coupon is delivered shall not invalidate the bond or interest coupon.

Section 20. Bond proceeds. The bonds shall be sold from time to time by the Director of the Governor's Office of Management and Budget to the highest and best bidders, for not less than their par value, upon sealed bids, at not exceeding the maximum interest rate fixed in the order authorizing the issuance of the bonds. The right to reject any and all bids may be reserved. The Secretary of State shall, from time to time, as the bonds are to be sold, advertise in at least 2 daily newspapers, one of which is published in the City of Springfield and one in the City of Chicago, for proposals to purchase the bonds. Each of the advertisements for proposals shall be published once at least 10 days prior to the date of the opening of bids. The executed bonds shall, upon payment therefore, be delivered to the purchaser, and the proceeds of the bonds shall be paid into the State treasury. The proceeds of the bonds shall be deposited in a separate fund known as the Titanium Powdered Metals Development Fund, which separate fund is hereby created.

Section 25. Expenditure of funds. At all times, the proceeds from the sale of bonds are subject to appropriation by the General Assembly and may be expended in such amounts and at such times as the Department of Commerce and Economic Opportunity may deem necessary or desirable for the specific purposes contemplated by this Act.

Section 30. Investment of proceeds. The Treasurer may, with the Governor's approval, invest and reinvest any money in the Titanium Powdered Metals Development Fund in the State treasury which, in the opinion of the Governor communicated in writing to the Treasurer, is not needed for current expenditures due or about to become due from such funds. These investments shall be made at the existing market price and in any event not to exceed 102% of par plus accrued interest, in obligations, the principal and interest on which is guaranteed by the United States government; any certificates of deposit of any savings and loan association or State or national bank which are fully secured by obligations, the principal of and interest on which is guaranteed by the United States government or secured by the bonds of this State or any of its units of local government, school districts, or public community college districts or municipal bonds of other states; or bonds, notes or debentures of the Illinois Building Authority, Illinois Toll Highway Authority, or Illinois Housing Development Authority. Securities of other states and their political subdivisions shall not be accepted at an amount exceeding 90% of their market value. All securities shall be subject to acceptance only upon the approval of the Treasurer. The cost price of all obligations shall be considered as cash in the custody of the Treasurer, and the obligations shall be conveyed at cost price as cash by the Treasurer to this successor. The money in the Titanium Powdered Metals Development Fund in the form of such obligations shall be set up by the Treasurer as separate accounts and shown distinctly in every report issued by him regarding fund balances. All earnings received upon any investment shall be paid into the General Revenue Fund. All of the moneys other than accrued interest received from the sale or redemption of investments shall be replaced by the Treasurer in the funds from which the money was removed for that investment.

No bank or savings and loan association shall receive public funds as permitted by this Section, unless it has complied with the requirements established pursuant to Section 6 of the Public Funds Investment Act.

Section 35. Repayments. To provide for the manner of repayment of the bonds, the Governor shall include an appropriation in each annual State Budget of moneys in an amount as shall be necessary and sufficient for the period covered by such budget to pay the interest, as it shall accrue, on all bonds issued under this Act and also to pay and discharge the principal of the bonds as shall by their terms fall due during such period. A separate fund in the State treasury called the Titanium Powdered Metals Development Bond Retirement and Interest Fund is hereby created. The General Assembly shall make appropriations to pay the principal of and interest on the bonds from the Titanium Powdered Metals Development Bond Retirement and Interest Fund. If for any reason the General Assembly fails to make appropriations of amounts sufficient for the State to pay the principal of and interest on the bonds as they shall by the terms of the bonds become due, this Act shall constitute an irrevocable and continuing appropriation of all amounts necessary for that purpose and the irrevocable and continuing authority for and direction to the Comptroller and to the Treasurer of the State to make the necessary transfers out of and disbursements from the revenues and funds of the State available for that purpose.

Section 40. Bond repayment; general obligations. All bonds issued in accordance with the provisions of this Act shall be direct, general obligations of the State of Illinois and shall so state on the face thereof, and the full faith and credit of the State of Illinois are hereby pledged for the punctual payment of the interest thereon as the same shall become due and for the punctual payment of the principal thereof at maturity, and the provisions of this Section shall be irrepealable until all bonds issued in accordance with the provisions of this Act are paid in full as to both principal and interest.

Section 45. Default. If the State fails to pay the principal of, or interest on, any of the bonds as they become due, a civil action to compel payment may be instituted in the Supreme Court of Illinois as a court of original jurisdiction by the holder or holders of the bonds on which such default of payment exists. Delivery of a summons and a copy of the complaint to the Attorney General shall constitute sufficient service to give the Supreme Court of Illinois jurisdiction of the subject matter of such a suit and jurisdiction over the State and its officers as defendants for the purpose of compelling such payment. Any case, controversy, or cause of action concerning the validity of this Act relates to the revenue of the State of Illinois.

Section 50. Treasurer and Comptroller. Upon each delivery of bonds authorized to be issued under this Act, the Comptroller shall compute and certify to the State Treasurer the total amount of principal of and interest on the bonds issued that will be payable in order to retire the bonds and the amount of principal of and interest on the bonds that will be payable on each payment date according to the terms of the bonds during the then current and each succeeding fiscal year. On or before the last day of the month preceding each payment date, the Treasurer and the Comptroller shall transfer from the General Revenue Fund in the State treasury to the Titanium Powdered Minerals Development Bond Retirement and Interest Fund a sum of money, appropriated for such purpose, so that the Fund contains an amount equal to the aggregate of the amount of principal and interest payable by the terms of the bonds on the next payment date. Such computations and transfers shall be made for each series of the bonds issued and delivered. The transfer of moneys directed by this Section is not required if moneys in the Titanium Powdered Minerals Development Bond Retirement and Interest Fund received from other sources are more than the amount otherwise to be transferred as herein provided, and if the Governor so notifies the Comptroller and Treasurer.

Section 55. Refunding bonds. The State of Illinois is authorized, from time to time as the Governor shall determine, to issue, sell, and provide for the retirement of bonds of the State of Illinois for the sole purpose of refunding all or any portion of the principal of the bonds issued under the provisions of this Act, provided that the refunding bonds shall mature no later than the final maturity date of the bonds being refunded. The refunding bonds shall in all other respects be subject to the terms and conditions of Sections 15, 20, 30, 35, 40, 45, 50, and 55 of this Act. The principal amount of any refunding bonds shall not exceed 103% of the principal amount of the bonds refunded with the proceeds of those refunding bonds.

Section 60. The State Finance Act is amended by adding Sections 5.811 and 5.812 as follows:

(30 ILCS 105/5.811 new)

Sec. 5.811. The Titanium Powdered Metals Development Fund.

(30 ILCS 105/5.812 new)

Sec. 5.812. The Titanium Powdered Metals Development Bond Retirement and Interest Fund.

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