30 ILCS 343/ Coronavirus Urgent Remediation Emergency Borrowing Act.

(30 ILCS 343/1)

Sec. 1. Short title. This Act may be cited as the Coronavirus Urgent Remediation Emergency Borrowing Act or the CURE Borrowing Act.

(Source: P.A. 101-630, eff. 5-29-20.)

(30 ILCS 343/5)

Sec. 5. Findings and purpose. The General Assembly finds that:

The State of Illinois is in the midst of both a public health emergency and a resultant fiscal crisis. The sudden worldwide outbreak of the Coronavirus Disease 2019 (COVID-19) and the spread of the disease in Illinois is causing dramatic economic upheaval and severe financial stress for individuals, businesses, health and other service providers, as well as the State and local governments across Illinois. It has resulted in declarations of disaster from both the Governor and the President of the United States. The disaster has caused, and will continue to cause for some time to come, reductions in revenues for the State at the same time expenditures must be incurred to respond to the emergency. The State requires greater flexibility to borrow efficiently and respond effectively to urgent financial needs as they arise.

The federal government has responded to the COVID-19 pandemic with the passage of legislation that provides emergency funding to state and local governments. One of the new funding programs, found in Section 4003 of the federal Coronavirus Aid, Relief, and Economic Stabilization Act (CARES Act) provides a Municipal Liquidity Facility administered by the Federal Reserve Bank with support from the United States Department of the Treasury, through which funds are being made available so that state and local governments may borrow funds directly from the program. The State of Illinois has the authority to participate in this program, any subsequent State and municipal financing program created by federal legislation to provide relief from the coronavirus pandemic (collectively "federal coronavirus financing legislation"), and any similar program that may be offered by the federal government or the Federal Reserve Bank.

The purpose of this Act is to revise the laws authorizing the State to borrow money and incur state debt so that the State will have needed flexibility in times of emergency, can borrow with enhanced efficiency in urgent circumstances, and can effectively utilize new borrowing programs and facilities offered by the United States Department of the Treasury and the Federal Reserve Bank, all while maintaining stringent standards for accountability and transparency.

(Source: P.A. 101-630, eff. 5-29-20.)

(30 ILCS 343/10)

Sec. 10. Borrowing authorized.

(a) Borrowing under this Section is authorized under subsection (b) of Section 9 of Article IX of the Illinois Constitution. The Governor, with the approval of the Comptroller and Treasurer, is authorized to borrow funds from the Federal Reserve Bank or its agent in accordance with the Municipal Liquidity Facility program established pursuant to Section 4003 of the federal CARES Act and Section 13(3) of the Federal Reserve Act, or in accordance with any other federal coronavirus financing legislation or similar program authorized by the United States Congress. The purposes for which borrowing is authorized include:

(1) to meet failures of revenue resulting from the COVID-19 outbreak and to support the emergency response thereto;

(2) to provide funds for payment or reimbursement of new or increased costs of State government resulting from the COVID-19 outbreak and the emergency response thereto;

(3) to provide funds to respond to any other disaster or emergency or failure of revenues or the costs of essential government services;

(4) to provide funds for deposit into the Healthcare Provider Relief Fund for payment of costs payable from the Fund; and

(5) to provide funds for payment or reimbursement of costs payable from the Health Insurance Reserve Fund.

Proceeds of the borrowing may also be used to pay the costs of borrowing and the debts created by the borrowing.

(b) The Governor may borrow funds and contract debts from time to time, in principal amounts not to exceed $5,000,000,000 outstanding at any time. Moneys thus borrowed shall be applied to any of the purposes described in this Section in accordance with properly enacted appropriations and transfers, or to pay the debts and associated expenses thus incurred, and to no other purpose. All proceeds from any borrowing under this Act, except those expended on the costs of issuance, shall be deposited into the Coronavirus Urgent Remediation Emergency Borrowing Fund (CURE Borrowing Fund). All moneys so borrowed shall be borrowed for no longer a time than the time limit set forth in federal program rules and guidance, and in no event longer than 10 years, and shall be repaid in equal principal payments or as required by federal program rules and guidance, if such requirements exist.

(Source: P.A. 101-630, eff. 5-29-20.)

(30 ILCS 343/15)

Sec. 15. Borrowing process.

(a) Whenever the borrowing of money under Section 10 is contemplated, the Director of the Governor's Office of Management and Budget, acting at the direction of the Governor, shall prepare for such borrowing in one or more series, in amounts, at prices and at interest rates, and in such manner as directed by the Governor.

(b) The Director of the Governor's Office of Management and Budget, acting at the direction of the Governor, may negotiate and borrow directly from the Federal Reserve Bank or its agent in accordance with the Municipal Liquidity Facility program established pursuant to Section 4003 of the federal CARES Act and Section 13(3) of the Federal Reserve Act, or in accordance with any other federal coronavirus financing legislation or other program authorized by the United States Congress.

(c) The rate of interest on any borrowing pursuant to this Act shall not exceed the maximum rate authorized by the Bond Authorization Act, as amended at the time of the making of the contract. The requirements of the Illinois Procurement Code requiring competitive requests for proposal shall not apply to the selection of a lender in accordance with this Section.

(Source: P.A. 101-630, eff. 5-29-20.)

(30 ILCS 343/20)

Sec. 20. Bonds, notes, certificates or other facilities; appropriation.

(a) There shall be prepared, under the direction of the Governor, the form of bonds, notes, certificates or other facilities that the Governor deems advisable for borrowing pursuant to this Act. The bonds, notes, certificates or other facilities, when issued, shall be signed by the Governor and a record of their issuance shall be kept by the Comptroller. The interest on and principal of the debt shall be paid from the General Obligation Bond Retirement and Interest Fund.

(b) There is appropriated on a continuing basis, out of any money in the State treasury, a sum sufficient for the payment of the interest on and principal of any debts contracted under this Act, and the irrevocable and continuing authority for and direction to the State Treasurer and the Comptroller to make the necessary transfers, as directed by the Governor.

(c) The Governor is authorized to order, pursuant to the proceedings authorizing debts contracted under this Act, the transfer of any moneys on deposit in the State treasury into the General Obligation Bond Retirement and Interest Fund at times and in amounts the Governor deems necessary to provide for the payment of that interest and principal.

(d) The Comptroller is authorized and directed to draw warrants on the State Treasurer for the amount of all payments of principal and interest on the bonds, notes, certificates or other facilities issued under this Act.

(Source: P.A. 101-630, eff. 5-29-20.)

(30 ILCS 343/50)

Sec. 50. (Amendatory provisions; text omitted).

(Source: P.A. 101-630, eff. 5-29-20; text omitted.)

(30 ILCS 343/55)

Sec. 55. (Amendatory provisions; text omitted).

(Source: P.A. 101-630, eff. 5-29-20; text omitted.)

(30 ILCS 343/99)

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

(Source: P.A. 101-630, eff. 5-29-20.)