Rep. Adam Brown

Filed: 3/15/2011

 

 


 

 


 
09700HB2097ham001LRB097 05068 PJG 53078 a

1
AMENDMENT TO HOUSE BILL 2097

2    AMENDMENT NO. ______. Amend House Bill 2097 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Finance Authority Act is amended
5by changing Sections 801-15, 810-20, 840-5, and 840-20 as
6follows:
 
7    (20 ILCS 3501/801-15)
8    Sec. 801-15. There is hereby created a body politic and
9corporate to be known as the Illinois Finance Authority. The
10exercise of the powers conferred by law shall be an essential
11public function. The Authority shall consist of 15 members, who
12shall be appointed by the Governor, with the advice and consent
13of the Senate. Upon the appointment of the Board and every 2
14years thereafter, the chairperson of the Authority shall be
15selected by the Governor to serve as chairperson for two years.
16Appointments to the Authority shall be persons of recognized

 

 

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1ability and experience in one or more of the following areas:
2economic development, finance, banking, industrial
3development, small business management, real estate
4development, housing, health facilities financing, local
5government financing, community development, venture finance,
6construction, and labor relations, agribusiness, and
7production agriculture. At the time of appointment, the
8Governor shall designate 5 members to serve until the third
9Monday in July 2005, 5 members to serve until the third Monday
10in July 2006 and 5 members to serve until the third Monday in
11July 2007. Thereafter, appointments shall be for 3-year terms.
12On or after the effective date of this amendatory Act of the
1397th General Assembly, no fewer than 2 members of or 2
14appointments to the Authority, or a combination thereof, shall
15be persons of recognized ability and experience in agribusiness
16or production agriculture; provided, however, that in the event
17a member of recognized ability and experience in agribusiness
18or production agriculture resigns, becomes incapacitated, or
19is otherwise unable to discharge his or her duties as a member
20of the Authority, such vacancy or inability to serve shall not
21otherwise adversely affect the requirements for a quorum, nor
22prohibit the Authority from exercising its powers conferred by
23law during the time of such vacancy or inability to act. A
24member shall serve until his or her successor shall be
25appointed and have qualified for office by filing the oath and
26bond. Members of the Authority shall not be entitled to

 

 

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1compensation for their services as members, but shall be
2entitled to reimbursement for all necessary expenses incurred
3in connection with the performance of their duties as members.
4The Governor may remove any member of the Authority in case of
5incompetence, neglect of duty, or malfeasance in office, after
6service on him of a copy of the written charges against him and
7an opportunity to be publicly heard in person or by counsel in
8his own defense upon not less than 10 days' notice. From
9nominations received from the Governor, the members of the
10Authority shall appoint an Executive Director who shall be a
11person knowledgeable in the areas of financial markets and
12instruments, to hold office for a one-year term. The Executive
13Director shall be the chief administrative and operational
14officer of the Authority and shall direct and supervise its
15administrative affairs and general management and perform such
16other duties as may be prescribed from time to time by the
17members and shall receive compensation fixed by the Authority.
18The Executive Director or any committee of the members may
19carry out such responsibilities of the members as the members
20by resolution may delegate. The Executive Director shall attend
21all meetings of the Authority; however, no action of the
22Authority shall be invalid on account of the absence of the
23Executive Director from a meeting. The Authority may engage the
24services of such other agents and employees, including
25attorneys, appraisers, engineers, accountants, credit analysts
26and other consultants, as it may deem advisable and may

 

 

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1prescribe their duties and fix their compensation. The
2Authority may appoint Advisory Councils to (1) assist in the
3formulation of policy goals and objectives, (2) assist in the
4coordination of the delivery of services, (3) assist in
5establishment of funding priorities for the various activities
6of the Authority, and (4) target the activities of the
7Authority to specific geographic regions. There may be an
8Advisory Council on Economic Development. The Advisory Council
9shall consist of no more than 12 members, who shall serve at
10the pleasure of the Authority. Members of the Advisory Council
11shall receive no compensation for their services, but may be
12reimbursed for expenses incurred with their service on the
13Advisory Council.
14(Source: P.A. 93-205, eff. 1-1-04.)
 
15    (20 ILCS 3501/810-20)
16    Sec. 810-20. Powers and Duties; Illinois Venture
17Investment Fund Limits. The Authority shall invest and reinvest
18the Fund and the income, thereof, in the following ways:
19    (a) To make a direct investment in qualified securities
20issued by enterprises and to dispose of those securities within
2110 years after the date of the direct investment as determined
22by the Authority for the purpose of providing venture capital
23or seed capital, provided that the investment shall not exceed
2449% of the estimated cost of development, testing, and initial
25production and marketing and associated working capital for the

 

 

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1technology, product, process, or invention, or $750,000,
2whichever is less;
3    (b) To enter into written agreements or contracts
4(including limited partnership agreements) with one or more
5professional investors or one or more seed capital investors,
6if any, for the purpose of establishing a pool of funds to be
7used exclusively as venture capital or seed capital
8investments. The Authority shall not invest more than
9$2,000,000 in a single pool of funds or affiliated pools of
10funds. The agreement or contract shall provide for the pool of
11funds to be managed by a professional investor. The manager may
12be the general partner of a limited partnership of which the
13Authority is a limited partner. The agreement or contract may
14provide for reimbursement of expenses of, and payment of a fee
15to, the manager. The agreement or contract may also provide for
16payment to the manager of a percentage, not to exceed 40%
17(computed on an annual basis), of cash and other property
18payable to the Authority as its pro-rata share of distributions
19to investors in the pool of funds, provided that (i) no amount
20shall be received by the manager upon sale or other disposition
21of qualified investments in enterprises until recovery by the
22Authority of its investment and upon liquidation or withdrawal
23of the Authority from the pool of funds, the manager shall be
24obligated to refund any amount received by it from such
25percentage if necessary to allow the Authority to recover its
26investment or (ii) the terms of payment of cash and other

 

 

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1property to the Authority are no less favorable to the
2Authority than payments to other seed capital investors (other
3than the manager) who are parties to the agreement or contract.
4    (c) To make co-venture investments by entering into
5agreements with one or more professional investors or one or
6more seed capital investors, if any, who have formally agreed
7to invest at least 50% as much as the Authority invests in the
8enterprise, for the purpose of providing venture capital or
9seed capital; but no more than $1,000,000 shall be invested by
10the Authority in the qualified securities of a single
11enterprise. A total of not more than $1,500,000 may be invested
12in the securities of a single enterprise, if the Authority
13shall find, after the initial investment by the Authority, that
14additional investments in the enterprise are necessary to
15protect or enhance the initial investment of the Authority.
16Each co-venture investment agreement shall provide that the
17Authority will recover its investment before or simultaneously
18with any distribution to participating professional investors
19or seed capital investors. The Authority and participating
20professional investors and seed capital investors shall share
21ratably in the profits earned in any form on the co-venture
22investment, but the Authority may, at its discretion, agree to
23pay to a participating professional investor a percentage, not
24to exceed 40% (computed on an annual basis), of cash and other
25property payable to the Authority as its pro-rata share of
26distributions to investors in the pool of funds, provided that

 

 

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1(i) no amount shall be received by the participating
2professional investor upon sale or other disposition of
3qualified investments in the enterprises until recovery by the
4Authority of its investment and upon liquidation or withdrawal
5of the Authority from the pool of funds, the participating
6professional investor shall be obligated to refund any amount
7received by it from such percentage if necessary to allow the
8Authority to recover its investment or (ii) the terms of
9payment of cash and other property to the Authority are no less
10favorable to the Authority than payments to other seed capital
11investors or professional investors (other than the
12professional investor) who are parties to the agreement or
13contract;
14    (d) To purchase qualified securities of certified
15development corporations created under Section 503 of the
16federal Small Business Administration Act, including the
17Illinois Small Business Growth Corporation, for the purpose of
18making loans to enterprises that have the potential to create
19substantial employment within the State per dollar invested by
20the Authority, provided that the investment does not exceed 25%
21of the total investment in each corporation at the time the
22investment is approved by the Authority. Investment by the
23Authority in the Illinois Small Business Growth Corporation is
24not limited by the foregoing provision;
25    (e) To purchase qualified securities of small business
26investment companies and minority enterprise small business

 

 

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1investment corporations certified by the federal Small
2Business Administration which are committed to making 60% of
3their investments in the State, provided that investments from
4the Fund do not exceed 25% of the total investment in these
5entities at the time the investment is approved by the
6Authority;
7    (f) To make the investments of any funds held in reserves
8or sinking funds, or any funds not required for immediate
9disbursement, as may be lawful investments for fiduciaries in
10the State;
11    (g) To facilitate and promote the acquisition and
12revitalization of existing manufacturing enterprises by
13developing and maintaining a list of firms, or divisions
14thereof, located within the State that are available for
15purchase, merger, or acquisition in response to a request from
16the General Assembly. As such information is outside the
17knowledge of the Authority and not otherwise readily obtained,
18the list shall be created from information provided by third
19parties, including, but not limited to, investment bankers,
20commercial bankers, trade associations, chambers of commerce,
21and similar institutions. The list may shall be made available
22at such charges as the Authority may determine to all
23interested persons and institutions upon request. No firm shall
24appear on the list without its prior written permission. The
25list may contain such additional financial, technical, market
26and other information as may be supplied by the listed firm.

 

 

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1The Authority shall bear no responsibility for the accuracy of
2the information contained on the list, and each listed firm
3shall hold the Authority harmless against any claim of
4inaccuracy. Enterprises supported by investments from the Fund
5shall receive consideration by the Authority in the allocation
6of loans to be insured or loans to be made from the proceeds of
7bonds to be insured by the Industrial Revenue Bond Insurance
8Fund established under this Article, and the Authority shall
9coordinate its activities under the 2 programs.
10(Source: P.A. 93-205, eff. 1-1-04.)
 
11    (20 ILCS 3501/840-5)
12    Sec. 840-5. The Authority shall have the following powers:
13    (a) To fix and revise from time to time and charge and
14collect rates, rents, fees and charges for the use of and for
15the services furnished or to be furnished by a project or other
16health facilities owned, financed or refinanced by the
17Authority or any portion thereof and to contract with any
18person, partnership, association or corporation or other body,
19public or private, in respect thereto; to coordinate its
20policies and procedures and cooperate with recognized health
21facility rate setting mechanisms which may now or hereafter be
22established.
23    (b) To establish rules and regulations for the use of a
24project or other health facilities owned, financed or
25refinanced by the Authority or any portion thereof and to

 

 

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1designate a participating health institution as its agent to
2establish rules and regulations for the use of a project or
3other health facilities owned by the Authority undertaken for
4that participating health institution.
5    (c) To establish or contract with others to carry out on
6its behalf a health facility project cost estimating service
7and to make this service available on all projects to provide
8expert cost estimates and guidance to the participating health
9institution and to the Authority. In order to implement this
10service and, through it, to contribute to cost containment, the
11Authority shall have the power to require such reasonable
12reports and documents from health facility projects as may be
13required for this service and for the development of cost
14reports and guidelines. The Authority may appoint a Technical
15Committee on Health Facility Project Costs and Cost
16Containment.
17    (d) To make mortgage or other secured or unsecured loans to
18or for the benefit of any participating health institution for
19the cost of a project in accordance with an agreement between
20the Authority and the participating health institution;
21provided that no such loan shall exceed the total cost of the
22project as determined by the participating health institution
23and approved by the Authority; provided further that such loans
24may be made to any entity affiliated with a participating
25health institution if the proceeds of such loan are made
26available to or applied for the benefit of such participating

 

 

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1health institution.
2    (e) To make mortgage or other secured or unsecured loans to
3or for the benefit of a participating health institution in
4accordance with an agreement between the Authority and the
5participating health institution to refund outstanding
6obligations, loans, indebtedness or advances issued, made,
7given or incurred by such participating health institution for
8the cost of a project; including the function to issue bonds
9and make loans to or for the benefit of a participating health
10institution to refinance indebtedness incurred by such
11participating health institution in projects undertaken and
12completed or for other health facilities acquired prior to or
13after the enactment of this Act when the Authority finds that
14such refinancing is in the public interest, and either
15alleviates a financial hardship of such participating health
16institution, or is in connection with other financing by the
17Authority for such participating health institution or may be
18expected to result in a lessened cost of patient care and a
19saving to third parties, including government, and to others
20who must pay for care, or any combination thereof; provided
21further that such loans may be made to any entity affiliated
22with a participating health institution if the proceeds of such
23loan are made available to or applied for the benefit of such
24participating health institution.
25    (f) To mortgage all or any portion of a project or other
26health facilities and the property on which any such project or

 

 

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1other health facilities are located whether owned or thereafter
2acquired, and to assign or pledge mortgages, deeds of trust,
3indentures of mortgage or trust or similar instruments, notes,
4and other securities of participating health institutions to
5which or for the benefit of which the Authority has made loans
6or of entities affiliated with such institutions and the
7revenues therefrom, including payments or income from any
8thereof owned or held by the Authority, for the benefit of the
9holders of bonds issued to finance such project or health
10facilities or issued to refund or refinance outstanding
11obligations, loans, indebtedness or advances of participating
12health institutions as permitted by this Act.
13    (g) To lease to a participating health institution the
14project being financed or refinanced or other health facilities
15conveyed to the Authority in connection with such financing or
16refinancing, upon such terms and conditions as the Authority
17shall deem proper, and to charge and collect rents therefor and
18to terminate any such lease upon the failure of the lessee to
19comply with any of the obligations thereof; and to include in
20any such lease, if desired, provisions that the lessee thereof
21shall have options to renew the lease for such period or
22periods and at such rent as shall be determined by the
23Authority or to purchase any or all of the health facilities or
24that upon payment of all of the indebtedness incurred by the
25Authority for the financing of such project or health
26facilities or for refunding outstanding obligations, loans,

 

 

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1indebtedness or advances of a participating health
2institution, then the Authority may convey any or all of the
3project or such other health facilities to the lessee or
4lessees thereof with or without consideration.
5    (h) To make studies of needed health facilities that could
6not sustain a loan were it made under this Act and to recommend
7remedial action to the General Assembly; to do the same with
8regard to any laws or regulations that prevent health
9facilities from benefiting from this Act.
10    (i) To assist the Department of Commerce and Economic
11Opportunity to establish and implement a program to assist
12health facilities to identify and arrange financing for energy
13conservation projects in buildings and facilities owned or
14leased by health facilities.
15    (j) To assist the Department of Human Services in
16establishing a low interest loan program to help child care
17centers and family day care homes serving children of low
18income families under Section 22.4 of the Children and Family
19Services Act. The Authority, on or after the effective date of
20this amendatory Act of the 97th General Assembly, shall be
21authorized to convert existing agreements for financial aid in
22accordance with this subsection to permanent capital to
23leverage additional private capital and establish a revolving
24loan fund for nonprofit corporations providing human services
25under contract to the State.
26    (k) To assist the Department of Public Health and nursing

 

 

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1homes in undertaking nursing home conversion projects in
2accordance with the Older Adult Services Act.
3(Source: P.A. 93-205, eff. 1-1-04; 93-1031, eff. 8-27-04.)
 
4    (20 ILCS 3501/840-20)
5    Sec. 840-20. It is the intent and purpose of this Act that
6the exercise by the Authority of the powers granted to it shall
7be in all respects for the benefit of the people of this State
8to assist them to provide needed health facilities of the
9number, size, type, distribution, and operation that will
10assure admission and care of high quality to all who need it.
11To this end, the Authority is charged with the responsibility
12to identify and study all projects which are determined by
13health planning agencies to be needed but which could not
14sustain a loan were such to be made to it under this Act. The
15Authority shall, following such study, formulate and recommend
16to the General Assembly, such amendments to this and other
17Acts, and such other specific measures as grants, loan
18guarantees, interest subsidies or other actions as may be
19provided for by the State which actions would render the
20construction and operation of such needed health facility
21feasible and in the public interest. Further, the Authority is
22charged with responsibility to respond to any requests from the
23General Assembly to identify and study any laws or regulations
24which it finds handicaps or bars a needed health facility from
25participating in the benefits of this Act and to recommend to

 

 

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1the General Assembly such actions as will remedy such
2situation.
3(Source: P.A. 93-205, eff. 1-1-04.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".