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91_HB2924ham001
LRB9108568DJcdam03
1 AMENDMENT TO HOUSE BILL 2924
2 AMENDMENT NO. . Amend House Bill 2924 by replacing
3 the title with the following:
4 "AN ACT concerning proceeds from tobacco litigation.";
5 and
6 by replacing everything after the enacting clause with the
7 following:
8 "Article 5.
9 Section 5-1. Short title. This Article may be cited as
10 the Health First Plan Law. In this Article, references to
11 "this Law" mean this Article.
12 Section 5-5. Definition. In this Act, "Master Settlement
13 Agreement" means the Master Settlement Agreement entered in
14 the case of the People of the State of Illinois v. Philip
15 Morris et al. (Circuit Court of Cook County, No. 96-L13146).
16 Section 5-10. Moneys set aside for investment.
17 (a) The General Assembly finds that it is important to
18 save a portion of the moneys paid to the State under the
19 Master Settlement Agreement to protect the State from
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1 financial hardship in the future due to less favorable
2 economic conditions, to provide reserves that may be used to
3 supplement moneys distributed under Section 5-15 of this Law,
4 or to finance other programs and services that the General
5 Assembly may authorize as provided in subsection (g) of this
6 Section.
7 (b) In each of fiscal years 2000 and 2001, 50% of the
8 moneys received by the State under the Master Settlement
9 Agreement shall be set aside for investment to foster growth
10 of those moneys so as to generate additional revenue that
11 will sustain distributions into the special funds established
12 under Section 20 over a longer period of time. In subsequent
13 fiscal years, the 50% that is set aside for investment in
14 each of the first 2 fiscal years shall be decreased by 2
15 percentage points per year for 25 years so that at the end of
16 that period all moneys received by the State under the Master
17 Settlement Agreement each fiscal year will be distributed
18 into the special funds. As provided in the Tobacco Settlement
19 Bonding Authority Law, the State Treasurer may sell to the
20 Tobacco Settlement Bonding Authority up to 20% of the moneys
21 received by the State under the Master Settlement Agreement.
22 The portion of those moneys sold to the Tobacco Settlement
23 Bonding Authority shall come from the moneys set aside for
24 investment under this subsection.
25 (c) The State Treasurer shall manage all moneys set
26 aside for investment under this Section. The Treasurer may
27 invest the moneys in the same manner, in the same types of
28 investments, and subject to the same limitations as provided
29 in the Illinois Pension Code for the investment of pension
30 funds other than those established under Article 3 or 4 of
31 that Code.
32 (d) The State Treasurer shall develop, publish, and
33 implement an investment policy covering the investment of the
34 moneys in the Tobacco Settlement Recovery Fund. The Treasurer
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1 shall cause the policy to be published at least once each
2 year in at least one newspaper of general circulation in both
3 Springfield and Chicago. At least 30 calendar days before
4 implementing any change in the previously published
5 investment policy, the Treasurer shall cause the change to be
6 published in a newspaper of general circulation in both
7 Springfield and Chicago. In the case of a State Treasurer
8 taking office after the effective date of this Law, within 90
9 days after taking office, the Treasurer shall review and, if
10 necessary, update the investment policy then in effect.
11 (e) All earnings on moneys set aside for investment
12 under this Section, less expenses incurred by the Treasurer
13 in administering the Fund, shall be retained in the Tobacco
14 Settlement Recovery Fund. The earnings shall not be included
15 in any amounts automatically distributed into the special
16 funds each fiscal year under Section 5-15 but shall be
17 allocated only in accordance with substantive legislation
18 enacted by the General Assembly from time to time as
19 circumstances and the State's needs dictate.
20 (f) The total expenses incurred by the State Treasurer
21 in administering the Tobacco Settlement Recovery Fund may not
22 exceed $200,000 before January 1, 2002. In 2002 and in each
23 year thereafter, the limit on the Treasurer's expenses
24 incurred in administering the Fund shall be adjusted based on
25 the Consumer Price Index for the North Central Region as
26 published by the United States Department of Labor, Bureau of
27 Labor Statistics, for the immediately preceding calendar
28 year.
29 (g) Except as provided in subsection (f) of Section 5-30
30 and except as otherwise provided by law, moneys appropriated
31 from the Tobacco Settlement Recovery Fund must be used for
32 purposes for which moneys appropriated from the special funds
33 established under Section 5-15 may be used. Moneys in the
34 Tobacco Settlement Recovery Fund may be appropriated for a
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1 purpose other than a purpose for which moneys appropriated
2 from the special funds established under Section 5-15 may be
3 used, but any such appropriation for another purpose must be
4 approved by a three-fifths majority of each house. Each
5 appropriation of moneys from the Fund for a separate purpose
6 must be made in a separate bill.
7 Section 5-15. Moneys distributed into special funds.
8 (a) The following are created as special funds in the
9 State treasury:
10 (1) The Smoking/Tobacco Control Trust Fund.
11 (2) The Healthy Communities Trust Fund.
12 (3) The Seniors/Disabled Choices Trust Fund.
13 (4) The Healthy Schools Trust Fund.
14 (5) The Health and Medicine Endowment Fund.
15 (6) The Health Infrastructure Fund.
16 (b) In each of fiscal years 2000 and 2001, 50% of the
17 moneys received by the State under the Master Settlement
18 Agreement shall be distributed, immediately upon receipt,
19 into the special funds established under subsection (a). In
20 subsequent fiscal years, the 50% that is distributed into the
21 special funds in each of the first 2 fiscal years shall be
22 increased by 2 percentage points per year for 25 years so
23 that at the end of that period all moneys received by the
24 State under the Master Settlement Agreement each fiscal year
25 will be distributed into the special funds. For purposes of
26 this Section, the moneys to be distributed into the special
27 funds in any fiscal year are the "moneys for distribution".
28 (c) In each fiscal year, the moneys for distribution
29 shall be distributed into the special funds established under
30 subsection (a) as follows:
31 (1) Thirty percent of the moneys for distribution
32 shall be distributed into the Smoking/Tobacco Control
33 Trust Fund for community-based programs and services
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1 administered by local nonprofit agencies, public
2 universities, and local health departments to control
3 tobacco use and distribution, to conduct smoking
4 cessation programs, and to provide addiction treatment,
5 according to budget guidelines issued by the U.S. Centers
6 for Disease Control.
7 (2) Twenty percent of the moneys for distribution
8 shall be distributed into the Healthy Communities Trust
9 Fund for expansion of community and family health
10 programs administered by various State agencies and
11 community-based organizations, including, but not limited
12 to: maternal and child health programs, including
13 services targeted to at-risk pregnant women and newborns
14 and infants; early childhood programs; adolescent
15 development programs; expanded coverage of children and
16 families under the Children's Health Insurance Program
17 Act; financial aid for urban and rural programs targeted
18 to designated shortage areas, as defined in the Illinois
19 Rural/Downstate Health Act; health programs targeted at
20 minorities; and HIV/AIDS control and prevention programs.
21 (3) Twenty percent of the moneys for distribution
22 shall be distributed into the Seniors/Disabled Choices
23 Trust Fund for home and community-based long-term care
24 services authorized under the Illinois Act on the Aging,
25 the Disabled Persons Rehabilitation Act, and the
26 Developmental Disability and Mental Disability Services
27 Act and for financial assistance provided to the elderly
28 or disabled including, but not limited to, expansion of
29 eligibility and coverage under the Senior Citizens and
30 Disabled Persons Property Tax Relief and Pharmaceutical
31 Assistance Act.
32 (4) Ten percent of the moneys for distribution shall
33 be distributed into the Healthy Schools Trust Fund for
34 primary and preventive health and mental health programs
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1 and services for pre-school and school-age children
2 coordinated by the State Board of Education, including,
3 but not limited to, a program of smoking prevention and
4 cessation that either employs certificated school nurses
5 or employs registered professional nurses enrolled in an
6 Illinois certificated school nurse program.
7 (5) Ten percent of the moneys for distribution shall
8 be distributed into the Health and Medicine Endowment
9 Fund for allocation to at least 7 universities located in
10 Illinois to fund research on tobacco-related illnesses
11 such as cancer, cardiovascular disease, and pulmonary
12 disease and to enhance programs administered by schools
13 of public health in relation to tobacco addiction control
14 and treatment, smoking prevention, and smoking cessation.
15 A portion of the moneys distributed into this Fund shall
16 also be used for graduate medical education and for
17 programs for students pursuing careers in primary care
18 family medicine and adolescent medicine in underserved
19 communities.
20 (6) Ten percent of the moneys for distribution shall
21 be distributed into the Health Infrastructure Fund for
22 health-related capital financing for the purpose of
23 establishment, construction, or modification of essential
24 health facilities and services and also including the
25 acquisition, replacement, or upgrading of medical
26 equipment or vehicles. This financing may include the
27 distribution of funds for health-related capital
28 financing in the form of direct grants, security to
29 underwrite capital development bonds, or security to
30 underwrite loan pools for small businesses.
31 (d) Moneys in each of the special funds established
32 under subsection (a) shall be spent only according to
33 appropriations to the Health First Plan Authority made by the
34 General Assembly. The Authority shall use moneys
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1 appropriated from the Smoking/Tobacco Control Trust Fund, the
2 Healthy Communities Trust Fund, the Senior/Disabled Choices
3 Trust Fund, the Healthy Schools Trust Fund, and the Health
4 Infrastructure Fund to award grants and contracts for
5 programs and services according to its policies, standards,
6 and procedures established under Section 5-30. The Authority
7 shall use moneys appropriated from the Health and Medicine
8 Endowment Fund to award research grants and contracts to
9 universities located in Illinois, also according to those
10 policies, standards, and procedures.
11 (e) Moneys unspent and remaining in a special fund at
12 the end of a fiscal year shall be carried over for
13 reappropriation and expenditure in subsequent fiscal years.
14 Section 5-20. Review of distributions. The General
15 Assembly may from time to time examine the amounts
16 distributed into the special funds established under Section
17 5-15 and allocated to programs, services, and universities
18 and may alter the schedule of decreases in the percentage of
19 moneys set aside for investment and the corresponding
20 schedule of increases in the percentage of moneys distributed
21 into the special funds, as circumstances and the State's
22 needs dictate.
23 Section 5-25. Treasurer's certification of amounts. Each
24 year, based on the amount paid to the State in that year
25 pursuant to the Master Settlement Agreement, the State
26 Treasurer shall certify to the General Assembly the portion
27 of that amount to be set aside for investment under Section
28 5-10 and the portion of that amount to be distributed into
29 each of the special funds established under Section 5-15.
30 Section 5-30. Health First Plan Authority.
31 (a) The Health First Plan Authority is created. The
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1 Health First Plan Authority shall be composed of 5 members
2 appointed by the Governor with the advice and consent of the
3 Senate. The Governor shall appoint the members within 3
4 months after the effective date of this Law. The Governor
5 shall initially appoint 2 members for terms of 2 years and 3
6 members for terms of 4 years. Thereafter, the Governor shall
7 appoint all members for terms of 4 years. If a vacancy
8 occurs in the office of a member, the Governor shall appoint
9 a person to fill the remainder of the unexpired term. The
10 Governor's appointments must reflect a political balance.
11 (b) A member may not have a financial interest in an
12 entity that receives or may receive moneys allocated from one
13 of the special funds established under Section 5-15, nor may
14 a member have a financial interest in any other entity that
15 benefits or may benefit from the allocation of those moneys.
16 (c) Members of the Health First Plan Authority may be
17 reimbursed for their reasonable expenses actually incurred in
18 performing their duties.
19 (d) The Health First Plan Authority shall establish
20 policies, standards, and procedures to govern the allocation
21 of moneys appropriated from the special funds established
22 under Section 5-15. Those policies, standards, and
23 procedures shall (i) require that priority in awarding grants
24 or contracts must go to applicants who propose to use the
25 grant or contract moneys in connection with programs or
26 services to address treatment of tobacco-related illnesses or
27 tobacco-use prevention or cessation and (ii) include
28 provisions for evaluating applicants for grants or contracts
29 funded with those moneys. The Health First Plan Authority
30 also shall establish clear performance and evaluation
31 standards, including, but not limited to, collection of
32 demographic data such as age, gender, race, ethnicity, and
33 geographic information, to be applied to recipients of those
34 moneys to measure the results of the allocations from the
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1 special funds and to determine future funding of programs and
2 services from those funds. The Health First Plan Authority
3 must evaluate the performance of every applicant for and
4 recipient of moneys appropriated from one of the special
5 funds and must conduct the evaluation before awarding,
6 continuing, or renewing a grant or contract.
7 (e) The Health First Plan Authority shall employ an
8 executive director and other staff necessary for processing
9 and overseeing grants and contracts funded with moneys
10 appropriated from the special funds established under Section
11 5-15.
12 (f) The General Assembly shall appropriate moneys for
13 the Health First Plan Authority's operation from the moneys
14 in the Tobacco Settlement Recovery Fund that are set aside
15 for investment under Section 5-10 or from the earnings on
16 those moneys.
17 Section 5-35. Comptroller's annual report. The State
18 Comptroller shall include, in the annual report required
19 under Section 20 of the State Comptroller Act, an accounting
20 of all amounts spent from each of the special funds
21 established under Section 5-15.
22 Section 5-40. Audit of special funds. At least once
23 during every biennium, as provided in Section 3-2 of the
24 Illinois State Auditing Act, the Auditor General shall
25 conduct a financial audit of all expenditures from the
26 special funds established under Section 5-15.
27 Section 5-45. Legislative Research Unit responsibilities.
28 As provided in Section 10-2 of the Legislative Commission
29 Reorganization Act of 1984, the Legislative Research Unit
30 shall evaluate the annual allocations and expenditures of
31 moneys from the special funds established under Section 5-15
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1 and shall conduct program evaluations to determine the impact
2 of the system for distributing moneys paid to the State under
3 the Master Settlement Agreement.
4 Article 10.
5 Section 10-1. Short title. This Article may be cited as
6 the Tobacco Settlement Bonding Authority Law. In this
7 Article, references to "this Law" mean this Article.
8 Section 10-5. Definitions. In this Law:
9 "Bonding Authority" means the Tobacco Settlement Bonding
10 Authority created under Section 10-10.
11 "Board" means the Board of Directors of the Tobacco
12 Settlement Bonding Authority.
13 "Bond" means a bond or note or any other evidence of
14 obligation for borrowed money deemed appropriate by the Board
15 of Directors of the Tobacco Settlement Bonding Authority.
16 "Public member" means a person who is not, and is not
17 related to anyone who is, an elected official, employee,
18 consultant, agent, attorney, or accountant of the State of
19 Illinois or any political subdivision of the State of
20 Illinois.
21 "Master Settlement Agreement" means the Master Settlement
22 Agreement entered in the case of the People of the State of
23 Illinois v. Phillip Morris, et al. (Circuit Court of Cook
24 County, No. 96-L13146).
25 Section 10-10. Creation. There is created the Tobacco
26 Settlement Bonding Authority, which shall constitute a
27 political subdivision, a body politic and corporate, and a
28 municipal corporation of the State of Illinois. The State
29 Treasurer may sell to the Bonding Authority up to 20% of all
30 payments received from the Master Settlement Agreement. The
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1 Bonding Authority shall pay its administrative expenses and
2 debt service expenses from the payments that it purchases
3 from the Master Settlement Agreement, provided that its
4 administrative expenses are approved by the Board of
5 Directors and do not exceed 0.5% of the payments transferred
6 to the Bonding Authority. The Bonding Authority shall, by
7 April 14 of each year, after payment of debt service, other
8 obligations, and administrative expenses, remit to the State
9 Treasurer for deposit into the Tobacco Settlement Recovery
10 Fund the remainder of the proceeds of the Master Settlement
11 Agreement that it has received, including investment earnings
12 and any bond proceeds including earnings on the investment of
13 the bond proceeds prior to remittance to the Treasurer. The
14 State Treasurer shall invest any moneys of the Bonding
15 Authority, on behalf of the Bonding Authority, in any
16 investment permitted by the Public Funds Investment Act or
17 any guaranteed investment contract the provider of which has
18 long-term debt rated in one of the three highest rating
19 categories (without regard to any rating refinement or
20 gradation by numerical or other modifiers) by 2 standard
21 rating services.
22 Section 10-15. Board of Directors. The State Treasurer,
23 or his or her designee, shall serve as the Chairman of the
24 Board. The Governor shall appoint 2 public members of the
25 Board and the Attorney General shall appoint one public
26 member of the Board, with the advice and consent of the
27 Senate, each for an initial term expiring July 1, 2003. The
28 State Treasurer, the Governor, and the Comptroller shall each
29 appoint one public member to the Board, with the advice and
30 consent of the Senate, for an initial term expiring July 1,
31 2002. The Attorney General and the Comptroller shall each
32 appoint one public member to the Board, with the advice and
33 consent of the Senate, for an initial term expiring July 1,
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1 2001. At the expiration of the term of any member, or in the
2 case of a vacancy, a successor shall be appointed by the
3 elected official, or the successor of the elected official,
4 who made the appointment for the initial term. All
5 successors of Board members shall hold office for a term of 3
6 years from the first day of July of the year in which they
7 are appointed, except in case of an appointment to fill a
8 vacancy. Vacancies for members shall be filled in the same
9 manner as original appointments for the balance of the
10 unexpired term. In case of a vacancy during the recess of
11 the Senate, the Governor, the Attorney General, the
12 Comptroller, or the State Treasurer shall make a temporary
13 appointment until the next meeting of the Senate, when he or
14 she shall appoint some person to fill the vacancy. Any
15 person so appointed whom the Senate confirms shall hold
16 office during the remainder of the term and until his
17 successor is appointed and qualified. The initial
18 appointments by the Governor, the Attorney General, the
19 Comptroller, or the State Treasurer shall be effective
20 immediately. Nothing shall preclude a member from serving
21 consecutive terms. All members of the Board shall hold their
22 offices until their successors are appointed.
23 Section 10-20. Reimbursement of expenses. Reimbursement
24 of expenses of members and employees of the Bonding Authority
25 shall not exceed the rates of reimbursement established by
26 the Governor's Travel Control Board for employees of the
27 State of Illinois.
28 Section 10-25. Actions of members. Four members of the
29 Bonding Authority shall constitute a quorum for the purpose
30 of conducting business. Actions of the Bonding Authority
31 must receive the affirmative vote of at least 4 members. The
32 Bonding Authority shall determine the times and places of its
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1 meetings. The members of the Bonding Authority shall serve
2 without compensation for service as a member but are entitled
3 to reimbursement of reasonable expenses incurred in the
4 performance of their official duties.
5 Section 10-30. Officers.
6 (a) The Bonding Authority shall appoint an Executive
7 Director, who shall be chief executive officer of the Bonding
8 Authority. In addition to any other duties set forth in this
9 Law, the Executive Director shall:
10 (1) Direct and supervise the administrative affairs
11 and activities of the Bonding Authority, in accordance
12 with its rules, regulations, and policies.
13 (2) Attend meetings of the Bonding Authority.
14 (3) Keep minutes of all proceedings of the Bonding
15 Authority.
16 (4) Approve all accounts for salaries and all other
17 allowable expenses of the Bonding Authority and its
18 employees and consultants and approve all expenses
19 incidental to the operation of the Bonding Authority.
20 (5) Perform any other duty that the Bonding
21 Authority requires for carrying out the provisions of
22 this Law.
23 (b) The Bonding Authority may appoint other officers of
24 the Bonding Authority who may or may not be members of the
25 Board.
26 Section 10-35. Powers. In addition to the powers set
27 forth elsewhere in this Law, the Bonding Authority may:
28 (1) Adopt and alter an official seal.
29 (2) Sue and be sued and plead and be impleaded, all
30 in its own name, and agree to binding arbitration of any
31 dispute to which it is a party.
32 (3) Adopt bylaws, rules, and regulations to carry
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1 out the provisions of this Law.
2 (4) Maintain an office or offices at such place as
3 the Bonding Authority may designate.
4 (5) Employ, either as regular employees or
5 independent contractors, consultants, accountants,
6 attorneys, financial experts, managers and other
7 professional personnel, and such other personnel as may
8 be necessary in the judgment of the Bonding Authority,
9 and fix their compensation.
10 (6) Enter into contracts and agreements of any kind.
11 (7) Issue bonds under Section 10-40.
12 (8) Exercise all the corporate powers granted
13 Illinois corporations under the Business Corporation Act
14 of 1983, except to the extent that powers are
15 inconsistent with those of a body politic and corporate
16 of the State.
17 (9) Do all things necessary or convenient to carry
18 out the powers granted by this Law.
19 Section 10-40. Bonding.
20 (a) The Bonding Authority shall issue bonds which are
21 revenue bonds that are payable solely from and secured solely
22 by the proceeds of the Master Settlement Agreement that have
23 been sold by the State of Illinois to the Bonding Authority
24 from the Master Settlement Agreement. The Bonding Authority
25 may issue bonds for the purpose of purchasing an interest of
26 the State of Illinois in the Master Settlement Agreement, for
27 the purpose of refunding, advance refunding, or refinancing
28 outstanding bonds, for the purpose of establishing reserves,
29 paying the interest on the bonds, and paying costs of
30 issuance of the bonds, and for any other proper public
31 purpose. Bonds may be issued in one or more series and shall
32 be payable solely and secured solely by the portion of the
33 Master Settlement Agreement that the State of Illinois has
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1 sold to the Bonding Authority.
2 (b) Bonds may be authorized by a resolution of the Board
3 and may be secured by a trust agreement by and between the
4 Bonding Authority and a corporate trustee or trustees, which
5 may be any trust company or bank having the powers of a trust
6 company within or without the State. Bonds may:
7 (1) Mature at any time or times not exceeding 20
8 years from the effective date of this Law.
9 (2) Notwithstanding the provisions of the Bond
10 Authorization Act or any other provision of law, bear
11 interest at any fixed or variable rate or rates
12 determined by the method provided in the resolution or
13 trust agreement.
14 (3) Be payable as to principal and interest at any
15 time or times, in the denominations and form, either
16 coupon or registered or both, and carry the registration
17 and privileges as to exchange, transfer, or conversion
18 and for the replacement of mutilated, lost, or destroyed
19 bonds as the resolution or trust agreement may provide.
20 (4) Be payable in lawful money of the United States
21 at a designated place.
22 (5) Be subject to the terms of purchase, payment,
23 redemption, refunding, or refinancing that the resolution
24 or trust agreement provides.
25 (6) Be executed by the manual or facsimile
26 signatures of the officers of the Bonding Authority
27 designated by the Bonding Authority, which signatures
28 shall be valid at delivery even for one who has ceased to
29 hold office.
30 (7) Be sold at public or private sale in the manner
31 and upon the terms determined by the Bonding Authority.
32 (8) Have such other terms and provisions as shall
33 be authorized by resolution of the Board.
34 (c) Any resolution or trust agreement may contain
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1 provisions that shall be a part of the contract with the
2 holders of the bonds as to:
3 (1) Limitations on the issue of additional bonds,
4 the terms upon which additional bonds may be issued and
5 secured, and the terms upon which additional bonds may
6 rank on a parity with, or be subordinate or superior to,
7 other bonds.
8 (2) The refunding, advance refunding or refinancing
9 of outstanding bonds.
10 (3) The procedure, if any, by which the terms of any
11 contract with holders of the bonds may be altered or
12 amended, the number of bond holders that must consent
13 thereto, and the manner in which consent shall be given.
14 (4) Defining the acts or omissions which shall
15 constitute a default in the duties of the Bonding
16 Authority to the holders of bonds and providing the
17 rights or remedies of such holders in the event of a
18 default which may include provisions restricting
19 individual right of action by the holders of the bonds.
20 (5) Any other matter relating to the bonds which the
21 Bonding Authority determines appropriate.
22 (d) In connection with the issuance of its bonds, the
23 Bonding Authority may enter into arrangements to provide
24 additional security and liquidity for the bonds. These may
25 include, without limitation, bond insurance, letters of
26 credit, lines of credit by which the Bonding Authority may
27 borrow funds to pay or redeem its bonds, and purchase or
28 remarketing arrangements for assuring the ability of holders
29 of the Bonding Authority's bonds to sell or to have redeemed
30 their bonds.
31 (e) A pledge by the Bonding Authority of the proceeds of
32 the Master Settlement Agreement that the State of Illinois
33 has sold to transfer to the Bonding Authority as security for
34 an issue of bonds or for the performance of its obligations
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1 under any management agreement shall be valid and binding
2 from the time when the pledge is made. The portion of the
3 Master Settlement Agreement proceeds that the State of
4 Illinois has committed to transfer to the Bonding Authority
5 pledged shall immediately be subject to the lien of the
6 pledge without any physical delivery or further act, and the
7 lien of any pledge shall be valid and binding against any
8 person having any claim of any kind in tort, contract, or
9 otherwise against the Bonding Authority, irrespective of
10 whether the person has notice. No resolution, trust
11 agreement, management agreement or financing statement,
12 continuation statement, or other instrument adopted or
13 entered into by the Bonding Authority need be filed or
14 recorded in any public record other than the records of the
15 Bonding Authority in order to perfect the lien against third
16 persons, regardless of any contrary provision of law.
17 (f) The Bonding Authority may issue bonds to refund,
18 advance refund, or refinance any of its bonds then
19 outstanding, including the payment of any redemption premium
20 and any interest accrued or to accrue to the earliest or any
21 subsequent date of redemption, purchase, or maturity of the
22 bonds, provided that the Bonding Authority shall not issue
23 any bonds that mature later than 20 years from the effective
24 date of this Law.
25 (g) At no time shall the total outstanding bonds of the
26 Bonding Authority issued under this Section exceed
27 $500,000,000. Bonds which have been paid, bonds which are
28 being paid or retired by issuance, sale or delivery of bonds,
29 and bonds for which sufficient funds have been deposited with
30 the paying agent or trustee to provide for payment of
31 principal and interest thereon, and any redemption premium,
32 as provided in the authorizing resolution or indenture, shall
33 not be considered outstanding for the purposes of this
34 subsection.
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1 (h) The bonds of the Bonding Authority shall not
2 constitute an indebtedness of the State or of any political
3 subdivision of the State. The bonds of the Bonding Authority
4 shall not be an obligation, general or moral, of the State of
5 Illinois and shall not be an obligation, general or moral,
6 secured by a pledge of the full faith and credit of the State
7 of Illinois, and the holders of bonds of the Bonding
8 Authority may not require the levy or imposition by the State
9 of any taxes or the application of other State revenues or
10 funds to the payment of the bonds of the Bonding Authority.
11 No member of the Bonding Authority or any person executing
12 the bonds shall be liable personally on the bonds or subject
13 to any personal liability by reason of the issuance of the
14 bonds. The foregoing shall be stated on the face of each
15 bond.
16 (i) The State of Illinois pledges to and agrees with the
17 holders of the bonds of the Bonding Authority issued pursuant
18 to this Law that the State will not limit or alter the rights
19 and powers vested in the Bonding Bonding Authority by this
20 Law so as to impair the terms of any contract made by the
21 Bonding Authority with those holders or in any way impair the
22 rights and remedies of those holders until the bonds,
23 together with interest thereon, with interest on any unpaid
24 installments of interest, and all costs and expenses in
25 connection with any action or proceedings by or on behalf of
26 those holders, are fully met and discharged. In addition,
27 the State pledges to and agrees with the holders of the bonds
28 of the Bonding Authority issued pursuant to this Law that the
29 State will not limit or alter the basis on which the proceeds
30 of the Master Settlement Agreement that the State of Illinois
31 has sold to the Bonding Authority are to be allocated,
32 deposited, and paid to the Authority as provided in this Law,
33 or the use of those funds, so as to impair the terms of any
34 such contract. The Bonding Authority is authorized to
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1 include these pledges and agreements of the State in any
2 contract with the holders of bonds issued pursuant to this
3 Section.
4 (j) The Bonding Authority may enter into agreements or
5 contracts with any person necessary or appropriate to place
6 the payment obligations of the Bonding Authority under any of
7 its bonds in whole or in part on any interest rate basis,
8 cash flow basis, or other basis desired by the Bonding
9 Authority, including without limitation agreements or
10 contracts commonly known as "interest rate swap agreements",
11 "forward payment conversion agreements", and "futures", or
12 agreements or contracts providing for payments based on
13 levels of or changes in interest rates, or agreements or
14 contracts to exchange cash flows or a series of payments, or
15 agreements or contracts, including without limitation
16 agreements or contracts commonly known as "options", "puts",
17 or "calls", to hedge payment, rate spread, or similar
18 exposure; provided, that any such agreement or contract shall
19 not constitute an obligation for borrowed money and shall not
20 be taken into account under this Law or any other debt limit
21 of the Bonding Authority or the State of Illinois.
22 Section 10-45. Records and reporting. The Executive
23 Director shall keep a record of the proceedings of the
24 Bonding Authority. The State Treasurer shall be custodian of
25 all Bonding Authority funds and shall be bonded in the amount
26 the other members of the Bonding Authority may designate.
27 The accounts and books of the Bonding Authority shall be set
28 up and maintained in a manner approved by the Auditor
29 General, and the Bonding Authority shall file with the
30 Auditor General a certified annual report within 120 days
31 after the close of its fiscal year. The Bonding Authority
32 shall also file with the Governor, the Secretary of the
33 Senate, the Clerk of the House of Representatives, and the
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1 Illinois Economic and Fiscal Commission, by March 1 of each
2 year, a written report covering its activities for the
3 previous fiscal year. After being so filed, the report shall
4 be a public record and open for inspection at the offices of
5 the Bonding Authority during normal business hours.
6 Section 10-50. Conflicts of interest. No member of the
7 Board may participate in any decision on any contract entered
8 into by the Bonding Authority if the member has a 7.5% or
9 greater pecuniary interest, direct or indirect, in any firm,
10 partnership, corporation, or association which is or may be a
11 party to the contract. Contracts or agreements obtained
12 through properly advertised bid procedures, or the ownership
13 of stock or other interest in any firm, partnership,
14 corporation, or association in which the member does not
15 actively participate in day-to-day management, shall not be
16 interpreted as a direct or indirect pecuniary interest in
17 violation of this Law. Notwithstanding any other provision of
18 law, any contract or agreement entered into in conformity
19 with this subsection shall not be void or invalid by reason
20 of any such interest, nor shall any person so refraining from
21 participation be guilty of any offense, be removed from
22 office, or be subject to any other penalty on account of that
23 interest.
24 Section 10-55. Dissolution. The Tobacco Settlement
25 Bonding Authority shall be dissolved 20 years after the
26 effective date of this Law. The Bonding Authority shall not
27 be dissolved or liquidated by virtue of any proceedings
28 under, and shall not be subject to, any bankruptcy,
29 insolvency, or similar federal or State laws.
30 Section 10-60. Property exempt from execution. All
31 property of the Bonding Authority is exempt from levy and
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1 sale by virtue of an execution. No execution or other
2 judicial process may issue against the Bonding Authority's
3 property, nor may any judgment against the Bonding Authority
4 be a charge or lien upon its property. However, nothing in
5 this Law shall apply to or limit the rights of the holder of
6 any bonds to pursue any remedy for the enforcement of any
7 pledge or lien given by the Bonding Authority on its revenues
8 or other money.
9 Section 10-65. Limitation. Any action or proceeding in
10 any court to set aside a resolution authorizing the Bonding
11 Authority's issuance of bonds under this Law or to obtain any
12 relief upon the ground that the resolution is invalid must be
13 commenced within 30 days after the Board adopts the
14 resolution. After this period of limitation expires, no right
15 of action or defense founded upon the invalidity of the
16 resolution or any of its provisions may be asserted, nor may
17 the validity of the resolution or any of its provisions be
18 open to question in any court on any ground.
19 Section 10-70. Bonds as legal investments and security.
20 Notwithstanding any restrictions contained in any other law,
21 the State and all public officers, governmental units and
22 agencies of the State, all national banking associations,
23 state banks, trust companies, savings banks and institutions,
24 building and loan associations, savings and loan
25 associations, investment companies and other persons carrying
26 on a banking business, all insurance companies, insurance
27 associations and other persons carrying on an insurance
28 business, and all executors, administrators, guardians,
29 trustees and other fiduciaries, may legally invest any
30 sinking funds, money or other funds belonging to them or
31 within their control in any bonds issued by the Bonding
32 Authority under this Law. These bonds are authorized
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1 security for any and all public deposits.
2 Section 10-75. Tax exemptions. All property of the
3 Bonding Authority and all bonds issued under this Law are
4 deemed to constitute essential public and governmental
5 purposes and the property and the bonds so issued, their
6 transfer and the income from those bonds are at all times
7 exempt from taxation within this State. For purposes of
8 Section 250 of the Illinois Income Tax Act, the exemption of
9 the income from bonds issued under this Act shall terminate
10 after all of the bonds have been paid. The amount of such
11 income that shall be added and then subtracted on the
12 Illinois income tax return of a taxpayer, pursuant to Section
13 203 of the Illinois Income Tax Act, from federal adjusted
14 gross income or federal taxable income in computing Illinois
15 base income shall be the interest net of any bond premium
16 amortization.
17 Section 10-80. Personal liability. Neither the members
18 of the Board nor any person executing bonds issued under this
19 Law shall be liable personally on those bonds by reason of
20 the issuance of the bonds.
21 Section 10-85. Complete, additional, and alternative
22 methods. The foregoing Sections of this Law are deemed to
23 provide a complete, additional, and alternative method for
24 the doing of the things authorized thereby and shall be
25 regarded as supplemental and additional to powers conferred
26 by other laws, provided that the issuance of bonds under this
27 Law need not comply with the requirements of any other law
28 applicable to the issuance of bonds. Except as otherwise
29 expressly provided in this Law, none of the powers granted to
30 the Bonding Authority under this Law shall be subject to the
31 supervision or regulation or require the approval or consent
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1 of any municipality or political subdivision or any
2 department, division, commission, board, body, bureau,
3 official, or agency thereof or of the State.
4 Section 10-90. Liberal construction of Law. This Law,
5 being necessary for the welfare of the State and its
6 inhabitants, shall be liberally construed to effect its
7 purposes.
8 Section 10-95. Severability. If any clause or other
9 portion of this Law is held invalid, that decision shall not
10 affect the validity of the remaining portions of this Law.
11 It is hereby declared that all such remaining portions of
12 this Law are severable, and that the General Assembly would
13 have enacted the remaining portions if the portions that may
14 be so held to be invalid had not been included in this Law.
15 Article 90.
16 Section 90-5. The State Comptroller Act is amended by
17 changing Section 20 as follows:
18 (15 ILCS 405/20) (from Ch. 15, par. 220)
19 Sec. 20. Annual report. The comptroller shall annually,
20 as soon as possible after the close of the fiscal year but no
21 later than December 31, make out and present to the Governor,
22 the President of the Senate, the Speaker of the House of
23 Representatives, the Minority Leader of the Senate, and the
24 Minority Leader of the House of Representatives a report,
25 showing the amount of warrants drawn on the treasury, on
26 other funds held by the State Treasurer and on any public
27 funds held by State agencies, during the preceding fiscal
28 year, and stating, particularly, on what account they were
29 drawn, and if drawn on the contingent fund, to whom and for
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1 what they were issued. The comptroller shall include in the
2 annual report an accounting of all amounts spent from each
3 of the special funds established under Section 5-15 of the
4 Health First Plan Law. He shall, also, at the same time,
5 report to the Governor, the President of the Senate, the
6 Speaker of the House of Representatives, the Minority Leader
7 of the Senate, and the Minority Leader of the House of
8 Representatives the amount of money received into the
9 treasury, into other funds held by the State Treasurer and
10 into any other funds held by State agencies during the
11 preceding fiscal year, and stating particularly, the source
12 from which the same may be derived, and also a general
13 account of all the business of his office during the
14 preceding fiscal year. The report shall also summarize for
15 the previous fiscal year the information required under
16 Section 19.
17 Within 60 days after the expiration of each calendar
18 year, the comptroller shall compile, from records maintained
19 and available in his office, a list of all persons including
20 those employed in the office of the comptroller, who have
21 been employed by the State during the past calendar year and
22 paid from funds in the hands of the State Treasurer.
23 The list shall be arranged according to counties and
24 shall state in alphabetical order the name of each employee,
25 the address in the county in which he votes, except as
26 specified below, the position and the total salary paid to
27 him during the past calendar year. For persons employed by
28 the Department of Corrections, Department of Children and
29 Family Services and the Department of State Police no address
30 shall be listed. The list so compiled and arranged shall be
31 kept on file in the office of the comptroller and be open to
32 inspection by the public at all times.
33 No person who utilizes the names obtained from this list
34 for solicitation shall represent that such solicitation is
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1 authorized by any officer or agency of the State of Illinois.
2 Violation of this provision is a Business Offense punishable
3 by a fine not to exceed $3,000.
4 (Source: P.A. 86-1003.)
5 Section 90-10. The Legislative Commission
6 Reorganization Act of 1984 is amended by changing Section
7 10-2 as follows:
8 (25 ILCS 130/10-2) (from Ch. 63, par. 1010-2)
9 Sec. 10-2. The Legislative Research Unit shall collect
10 information concerning the government and general welfare of
11 the State, examine the effects of constitutional provisions
12 and previously enacted statutes, consider important issues of
13 public policy and questions of state-wide interest, and
14 perform research and provide information as may be requested
15 by the members of the General Assembly or as the Joint
16 Committee on Legislative Support Services considers necessary
17 or desirable.
18 The Legislative Research Unit shall maintain an
19 up-to-date computerized record of the information required to
20 be reported to it by Section 1 of "An Act concerning State
21 boards and commissions and amending a named Act", enacted by
22 the 86th General Assembly, which information shall be a
23 public record under The Freedom of Information Act. The
24 Legislative Research Unit may prescribe forms for making
25 initial reports and reports of change under that Section, and
26 may request information to verify compliance with that
27 Section.
28 Each year, the Legislative Research Unit shall evaluate
29 the allocations and expenditures of moneys from the special
30 funds established under Section 5-15 of the Health First Plan
31 Law and shall conduct program evaluations to determine the
32 impact of the system for distributing moneys paid to the
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1 State under the Master Settlement Agreement as defined in
2 that Law. The Legislative Research Unit may enter into
3 contracts with public or private entities to conduct the
4 evaluations. The Legislative Research Unit shall report the
5 evaluation findings each year to the General Assembly.
6 (Source: P.A. 86-591.)
7 Section 90-15. The Illinois State Auditing Act is
8 amended by changing Section 3-2 as follows:
9 (30 ILCS 5/3-2) (from Ch. 15, par. 303-2)
10 Sec. 3-2. Mandatory and directed post audits. The
11 Auditor General shall conduct a financial audit of each State
12 agency except the Auditor General or his office at least once
13 during every biennium, except as is otherwise provided in
14 regulations adopted under Section 3-8. At least once during
15 every biennium, the Auditor General shall conduct a financial
16 audit of all expenditures from the special funds established
17 under Section 5-15 of the Health First Plan Law. The general
18 direction and supervision of the financial audit program may
19 be delegated only to an individual who is a Certified Public
20 Accountant and a payroll employee of the Office of the
21 Auditor General. In the conduct of financial audits, the
22 Auditor General may inquire into and report upon matters
23 properly within the scope of a management or program audit,
24 provided that such inquiry shall be limited to matters
25 arising during the ordinary course of the financial audit.
26 In any year the Auditor General shall conduct any special
27 audits as may be necessary to form an opinion on the
28 financial report of this State, as prepared by the
29 Comptroller, and to certify that this presentation is in
30 accordance with generally accepted accounting principles for
31 government.
32 Simultaneously with the biennial financial audit of the
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1 Department of Human Services, the Auditor General shall
2 conduct a program audit of each facility under the
3 jurisdiction of that Department that is described in Section
4 4 of the Mental Health and Developmental Disabilities
5 Administrative Act. The program audit shall include an
6 examination of the records of each facility concerning
7 reports of suspected abuse or neglect of any patient or
8 resident of the facility. The Auditor General shall report
9 the findings of the program audit to the Governor and the
10 General Assembly, including findings concerning patterns or
11 trends relating to abuse or neglect of facility patients and
12 residents. However, for any year for which the Inspector
13 General submits a report to the Governor and General Assembly
14 as required under Section 6.7 of the Abused and Neglected
15 Long Term Care Facility Residents Reporting Act, the Auditor
16 General need not conduct the program audit otherwise required
17 under this paragraph.
18 The Auditor General shall conduct a management or program
19 audit of a State agency when so directed by the Commission,
20 or by either house of the General Assembly, in a resolution
21 identifying the subject, parties and scope. Such a directing
22 resolution may:
23 (a) require the Auditor General to examine and
24 report upon specific management efficiencies or cost
25 effectiveness proposals specified therein;
26 (b) in the case of a program audit, set forth
27 specific program objectives, responsibilities or duties
28 or may specify the program performance standards or
29 program evaluation standards to be the basis of the
30 program audit;
31 (c) be directed at particular procedures or
32 functions established by statute, by administrative
33 regulation or by precedent; and
34 (d) require the Auditor General to examine and
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1 report upon specific proposals relating to state programs
2 specified in the resolution.
3 The Commission may by resolution clarify, further direct,
4 or limit the scope of any audit directed by a resolution of
5 the House or Senate, provided that any such action by the
6 Commission must be consistent with the terms of the directing
7 resolution.
8 (Source: P.A. 89-427, eff. 12-7-95; 89-507, eff. 7-1-97.)
9 Section 90-20. The State Finance Act is amended by adding
10 Sections 5.541, 5.542, 5.543, 5.544, 5.545, and 5.546 and
11 changing Section 6z-43 as follows:
12 (30 ILCS 105/5.541 new)
13 Sec. 5.541. The Smoking/Tobacco Control Trust Fund.
14 (30 ILCS 105/5.542 new)
15 Sec. 5.542. The Healthy Communities Trust Fund.
16 (30 ILCS 105/5.543 new)
17 Sec. 5.543. The Seniors/Disabled Choices Trust Fund.
18 (30 ILCS 105/5.544 new)
19 Sec. 5.544. The Healthy Schools Trust Fund.
20 (30 ILCS 105/5.545 new)
21 Sec. 5.545. The Health and Medicine Endowment Fund.
22 (30 ILCS 105/5.546 new)
23 Sec. 5.546. The Health Infrastructure Fund.
24 (30 ILCS 105/6z-43)
25 Sec. 6z-43. Tobacco Settlement Recovery Fund. There is
26 created in the State Treasury a special fund to be known as
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1 the Tobacco Settlement Recovery Fund into which shall be
2 deposited all monies paid to the State pursuant to (1) the
3 Master Settlement Agreement entered in the case of People of
4 the State of Illinois v. Philip Morris, et al. (Circuit Court
5 of Cook County, No. 96-L13146) and (2) any settlement with or
6 judgment against any tobacco product manufacturer other than
7 one participating in the Master Settlement Agreement in
8 satisfaction of any released claim as defined in the Master
9 Settlement Agreement, as well as any other monies as provided
10 by law. All earnings on Fund investments shall be deposited
11 into the Fund. Upon the creation of the Fund, the State
12 Comptroller shall order the State Treasurer to transfer into
13 the Fund any monies paid to the State as described in item
14 (1) or (2) of this Section before the creation of the Fund
15 plus any interest earned on the investment of those monies.
16 The State Treasurer shall administer the Fund as provided in
17 the Health First Plan Law.
18 (Source: P.A. 91-646, eff. 11-19-99.)
19 Section 90-99. Effective date. This Act takes effect
20 upon becoming law.".