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91_HB0167eng HB0167 Engrossed LRB9100236MWpc 1 AN ACT concerning bonds, amending named Acts. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The General Obligation Bond Act is amended by 5 changing Section 2 as follows: 6 (30 ILCS 330/2) (from Ch. 127, par. 652) 7 Sec. 2. Authorization for Bonds. The State of Illinois 8 is authorized to issue, sell and provide for the retirement 9 of General Obligation Bonds of the State of Illinois in the 10 total amount of $11,395,296,392$10,895,296,392herein called 11 "Bonds". 12 Of the total amount of bonds authorized above, up to 13 $2,700,000,000$2,200,000,000in aggregate original principal 14 amount may be issued and sold in accordance with the 15 Baccalaureate Savings Act in the form of General Obligation 16 College Savings Bonds. 17 Of the total amount of bonds authorized above, up to 18 $300,000,000 in aggregate original principal amount may be 19 issued and sold in accordance with the Retirement Savings Act 20 in the form of General Obligation Retirement Savings Bonds. 21 The issuance and sale of Bonds pursuant to the General 22 Obligation Bond Act is an economical and efficient method of 23 financing the capital needs of the State. This Act will 24 permit the issuance of a multi-purpose General Obligation 25 Bond with uniform terms and features. This will not only 26 lower the cost of registration but also reduce the overall 27 cost of issuing debt by improving the marketability of 28 Illinois General Obligation Bonds. 29 Bonds shall be issued for the categories and specific 30 purposes expressed in Sections 2 through 8 and Section 16 of 31 this Act. HB0167 Engrossed -2- LRB9100236MWpc 1 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549, 2 eff. 12-8-97; 90-586, eff. 6-4-98.) 3 Section 10. The Baccalaureate Savings Act is amended by 4 changing Section 4 as follows: 5 (110 ILCS 920/4) (from Ch. 144, par. 2404) 6 Sec. 4. Issuance and Sale of College Savings Bonds. In 7 order to provide investors with investment alternatives to 8 enhance their financial access to Institutions of Higher 9 Education located in the State of Illinois, and in 10 furtherance of the public policy of this Act, bonds 11 authorized by the provisions of the General Obligation Bond 12 Act, in a total aggregate original principal amount not to 13 exceed $2,700,000,000$2,200,000,000may be issued and sold 14 from time to time, and as often as practicable, as College 15 Savings Bonds in such amounts as directed by the Governor, 16 upon recommendation by the Director of the Bureau of the 17 Budget. Bonds to be issued and sold as College Savings Bonds 18 shall be designated by the Governor and the Director of the 19 Bureau of the Budget as "General Obligation College Savings 20 Bonds" in the proceedings authorizing the issuance of such 21 Bonds, and shall be subject to all of the terms and 22 provisions of the General Obligation Bond Act, except that 23 College Savings Bonds may bear interest payable at such time 24 or times and may be sold at such prices and in such manner as 25 may be determined by the Governor and the Director of the 26 Bureau of the Budget and except as otherwise provided in this 27 Act. If College Savings Bonds are sold at public sale, the 28 public sale procedures shall be as set forth in Section 11 of 29 the General Obligation Bond Act. College Savings Bonds may 30 be sold at negotiated sale if the Director of the Bureau of 31 the Budget determines that a negotiated sale will result in 32 either a more efficient and economic sale of such Bonds or HB0167 Engrossed -3- LRB9100236MWpc 1 greater access to such Bonds by investors who are residents 2 of the State of Illinois. If any College Savings Bonds are 3 sold at a negotiated sale, the underwriter or underwriters to 4 which such Bonds are sold shall (a) be organized, 5 incorporated or have their principal place of business in the 6 State of Illinois, or (b) in the judgment of the Director of 7 the Bureau of the Budget, have sufficient capability to make 8 a broad distribution of such Bonds to investors resident in 9 the State of Illinois. In determining the aggregate 10 principal amount of College Savings Bonds that has been 11 issued pursuant to this Act, the aggregate original principal 12 amount of such Bonds issued and sold shall be taken into 13 account. Any bond issued under this Act shall be payable in 14 one payment on a fixed date, unless the Governor and the 15 Director of the Bureau of the Budget determine otherwise. 16 (Source: P.A. 90-1, eff. 2-20-97.) 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.