HB3108 100TH GENERAL ASSEMBLY

LRB100 10456 HLH 20668 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3108

Introduced , by Rep. John Cavaletto

SYNOPSIS AS INTRODUCED:

20 ILCS 3501/825-80
20 ILCS 3501/825-81
20 ILCS 3501/825-85

Amends the Illinois Finance Authority Act. In Sections concerning the fire truck revolving loan program, the fire station revolving loan program, and the ambulance revolving loan program, provides that repayments of loans made under those programs (and interest on those moneys) may be retained by the Authority and used for the purposes for which they are otherwise authorized to be used (currently, deposited into the Fire Truck Revolving Loan Fund, the Fire Station Revolving Loan Fund, and the Ambulance Revolving Loan Fund, as applicable). Provides that a loan for the purchase of an ambulance may not exceed $200,000 (instead of $100,000).

FISCAL 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 5. The Illinois Finance Authority Act is amended by changing Sections 825-80, 825-81, and 825-85 as follows:

(20 ILCS 3501/825-80)

Sec. 825-80. Fire truck revolving loan program.

(a) This Section is a continuation and re-enactment of the fire truck revolving loan program enacted as Section 3-27 of the Rural Bond Bank Act by Public Act 93-35, effective June 24, 2003, and repealed by Public Act 93-205, effective January 1, 2004. Under the Rural Bond Bank Act, the program was administered by the Rural Bond Bank and the State Fire Marshal.

(a-5) For purposes of this Section, "brush truck" means a pickup chassis with or equipped with a flatbed or a pickup box. The truck must be rated by the manufacturer as between three-fourths of a ton and one ton and outfitted with a fire or rescue apparatus.

(b) The Authority and the State Fire Marshal may jointly administer a fire truck revolving loan program. The program shall, in instances where sufficient loan funds exist to permit applications to be accepted, provide zero-interest and low-interest loans for the purchase of fire trucks by a fire department, a fire protection district, or a township fire department. For the purchase of brush trucks by a fire department, a fire protection district, or a township fire department, the program shall provide loans at a 2% rate of simple interest per year for a brush truck if both the chassis and the apparatus are built outside of Illinois, a 1% rate of simple interest per year for a brush truck if either the chassis or the apparatus is built in Illinois, or a 0% rate of interest for a brush truck if both the chassis and the apparatus are built in Illinois. The Authority shall make loans based on need, as determined by the State Fire Marshal.

(c) The loan funds may , subject to appropriation, shall be paid: (1) subject to appropriation pursuant to subsection (c-1) of this Section, out of the Fire Truck Revolving Loan Fund, a special fund in the State Treasury; (2) out of moneys retained by the Authority (and interest thereon) from the repayment of loans pursuant to subsection (d) of this Section; or (3) out of a combination of items (1) and (2). The Fire Truck Revolving Loan Fund shall consist of any moneys transferred or appropriated into the Fire Truck Revolving Loan Fund, as well as all repayments of loans made under the program and any balance existing in the Fire Truck Revolving Loan Fund on the effective date of this Section. The Fire Truck Revolving Loan Fund shall be used for loans to fire departments and fire protection districts to purchase fire trucks and brush trucks and for no other purpose. All interest earned on moneys in the Fire Truck Revolving Loan Fund shall be deposited into the Fire Truck Revolving Loan Fund. As soon as practical after January 1, 2013 (the effective date of Public Act 97-901), all moneys in the Fire Truck Revolving Loan Fund shall be transferred paid by the State Fire Marshal to the Authority, and, on and after that date, all future moneys deposited into the Fire Truck Revolving Loan Fund under this Section shall be transferred paid by the State Fire Marshal to the Authority under the continuing appropriation provision of subsection (c-1) of this Section; provided that the Authority and the State Fire Marshal enter into an intergovernmental agreement to use the moneys transferred to the Authority from the Fire Truck Revolving Loan Fund and moneys retained by the Authority (and interest thereon) from the repayment of loans pursuant to subsection (d) of this Section solely for the purposes for which the moneys may would otherwise be used under this Section and to set forth procedures to otherwise administer the use of the moneys.

(c-1) There is hereby appropriated, on a continuing annual basis in each fiscal year, from the Fire Truck Revolving Loan Fund, the amount, if any, of funds received into the Fire Truck Revolving Loan Fund to the State Fire Marshal for payment to the Authority for the purposes for which the moneys may would otherwise be used under this Section.

(d) A loan for the purchase of fire trucks or brush trucks may not exceed $350,000 to any fire department or fire protection district. A loan for the purchase of brush trucks may not exceed $100,000 per truck. The repayment period for the loan may not exceed 20 years. The fire department or fire protection district shall repay each year at least 5% of the principal amount borrowed or the remaining balance of the loan, whichever is less; provided, however, that, if the loan bears interest, the repayment may be structured as approximate level debt service payments for each full year of the loan. All repayments of loans and interest on those moneys earned while they are held by the Authority shall be retained by the Authority and used solely for the purposes for which moneys may otherwise be used under this Section deposited into the Fire Truck Revolving Loan Fund.

(e) The Authority and the State Fire Marshal may adopt rules in accordance with the Illinois Administrative Procedure Act to administer the program.

(f) Notwithstanding the repeal of Section 3-27 of the Rural Bond Bank Act, all otherwise lawful actions taken on or after January 1, 2004 and before the effective date of this Section by any person under the authority originally granted by that Section 3-27, including without limitation the granting, acceptance, and repayment of loans for the purchase of fire trucks, are hereby validated, and the rights and obligations of all parties to any such loan are hereby acknowledged and confirmed.

(Source: P.A. 97-900, eff. 8-6-12; 97-901, eff. 1-1-13; 98-463, eff. 8-16-13; 98-662, eff. 6-23-14.)

(20 ILCS 3501/825-81)

Sec. 825-81. Fire station revolving loan program.

(a) The Authority and the State Fire Marshal may jointly administer a fire station revolving loan program. The program shall, in instances where sufficient loan funds exist to permit applications to be accepted, provide zero-interest and low-interest loans for the construction, rehabilitation, remodeling, or expansion of a fire station or the acquisition of land for the construction or expansion of a fire station by a fire department, a fire protection district, or a township fire department. Once the program receives funding, the Authority shall make loans based on need, as determined by the State Fire Marshal.

(b) The loan funds, subject to appropriation, may be paid: (1) subject to appropriation pursuant to subsection (b-1) of this Section, out of the Fire Station Revolving Loan Fund, a special fund in the State treasury; (2) out of moneys retained by the Authority (and interest thereon) from the repayment of loans pursuant to subsection (c) of this Section; or (3) out of a combination of items (1) and (2). The Fire Station Revolving Loan Fund may consist of any moneys transferred or appropriated into the Fire Station Revolving Loan Fund, as well as all repayments of loans made under the program. Once the program receives funding, the Fire Station Revolving Loan Fund may be used for loans to fire departments and fire protection districts to construct, rehabilitate, remodel, or expand fire stations or acquire land for the construction or expansion of fire stations and for no other purpose. All interest earned on moneys in the Fire Station Revolving Loan Fund shall be deposited into the Fire Station Revolving Loan Fund. As soon as practical after the effective date of this amendatory Act of the 97th General Assembly, all moneys in the Fire Station Revolving Loan Fund shall be transferred paid by the State Fire Marshal to the Authority, and, on and after the effective date of this amendatory Act of the 97th General Assembly, all future moneys deposited into the Fire Station Revolving Loan Fund under this Section shall be transferred paid by the State Fire Marshal to the Authority under the continuing appropriation provision of subsection (b-1) of this Section; provided that the Authority and the State Fire Marshal enter into an intergovernmental agreement to use the moneys transferred paid by the State Fire Marshal to the Authority from the Fire Station Revolving Loan Fund and moneys retained by the Authority (and interest thereon) from the repayment of loans pursuant to subsection (c) of this Section solely for the purposes for which the moneys may would otherwise be used under this Section and to set forth procedures to otherwise administer the use of the moneys.

(b-1) There is hereby appropriated, on a continuing annual basis in each fiscal year, from the Fire Station Revolving Loan Fund, the amount, if any, of funds received into the Fire Station Revolving Loan Fund to the State Fire Marshal for payment to the Authority for the purposes for which the moneys may would otherwise be used under this Section.

(c) A loan under the program may not exceed $2,000,000 to any fire department or fire protection district. The repayment period for the loan may not exceed 25 years. The fire department or fire protection district shall repay each year at least 4% of the principal amount borrowed or the remaining balance of the loan, whichever is less; provided, however, that, if the loan bears interest, the repayment may be structured as approximate level debt service payments for each full year of the loan. All repayments of loans and interest on those moneys earned while they are held by the Authority shall be retained by the Authority and used solely for the purposes for which the moneys may otherwise be used under this Section deposited into the Fire Station Revolving Loan Fund.

(d) The Authority and the State Fire Marshal may adopt rules in accordance with the Illinois Administrative Procedure Act to administer the program.

(Source: P.A. 96-135, eff. 8-7-09; 96-1172, eff. 7-22-10; 97-901, eff. 1-1-13.)

(20 ILCS 3501/825-85)

Sec. 825-85. Ambulance revolving loan program.

(a) The Authority and the State Fire Marshal may jointly administer an ambulance revolving loan program. The program shall, in instances where sufficient loan funds exist to permit applications to be accepted, provide zero-interest and low-interest loans for the purchase of ambulances by a fire department, a fire protection district, a township fire department, or a non-profit ambulance service. The Authority shall make loans based on need, as determined by the State Fire Marshal.

(b) The loan funds may , subject to appropriation, shall be paid: (1) subject to appropriation pursuant to subsection (b-1) of this Section, out of the Ambulance Revolving Loan Fund, a special fund in the State treasury; (2) out of moneys retained by the Authority (and interest thereon) from the repayment of loans pursuant to subsection (c) of this Section; or (3) out of a combination of items (1) and (2). The Fund shall consist of any moneys transferred or appropriated into the Fund, as well as all repayments of loans made under the program. The Ambulance Revolving Loan Fund shall be used for loans to fire departments, fire protection districts, and non-profit ambulance services to purchase ambulances and for no other purpose. All interest earned on moneys in the Ambulance Revolving Loan Fund shall be deposited into the Ambulance Revolving Loan Fund. As soon as practical after the effective date of this amendatory Act of the 97th General Assembly, all moneys in the Ambulance Revolving Loan Fund shall be transferred paid by the State Fire Marshal to the Authority, and, on and after the effective date of this amendatory Act of the 97th General Assembly, all future moneys deposited into the Ambulance Revolving Loan Fund under this Section shall be transferred paid by the State Fire Marshal to the Authority under the continuing appropriation provision of subsection (b-1) of this Section; provided that the Authority and the State Fire Marshal enter into an intergovernmental agreement to use the moneys transferred to the Authority from the Ambulance Revolving Loan Fund and moneys retained by the Authority (and interest thereon) from the repayment of loans pursuant to subsection (c) of this Section solely for the purposes for which the moneys may would otherwise be used under this Section and to set forth procedures to otherwise administer the use of the moneys.

(b-1) There is hereby appropriated, on a continuing annual basis in each fiscal year, from the Ambulance Revolving Loan Fund, the amount, if any, of funds received into the Ambulance Revolving Loan Fund to the State Fire Marshal for payment to the Authority for the purposes for which the moneys may would otherwise be used under this Section.

(c) A loan for the purchase of ambulances may not exceed $200,000 $100,000 to any fire department, fire protection district, or non-profit ambulance service. The repayment period for the loan may not exceed 10 years. The fire department, fire protection district, or non-profit ambulance service` shall repay each year at least 5% of the principal amount borrowed or the remaining balance of the loan, whichever is less. All repayments of loans and interest on those moneys earned while they are held by the Authority shall be retained by the Authority and used solely for the purposes for which the moneys may otherwise be used under this Section deposited into the Ambulance Revolving Loan Fund.

(d) The Authority and the State Fire Marshal may adopt rules in accordance with the Illinois Administrative Procedure Act to administer the program.

(Source: P.A. 97-901, eff. 1-1-13.)