HB0923 95TH GENERAL ASSEMBLY

LRB095 07579 HLH 27729 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0923

Introduced 2/7/2007, by Rep. Kurt M. Granberg

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.675 new

Creates the Port Development Revolving Loan Program Act. Provides that the Department of Commerce and Economic Opportunity may provide grants or interest-free or below market rate loans to port districts in the State for the purposes of enhancing the use of Illinois' navigable waterways and developing inland inter-modal freight facilities within the State. Sets forth the terms and conditions of the grants and loans. Creates the Port Development Revolving Loan Fund. Amends the State Finance Act to make corresponding changes. Effective July 1, 2007.

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 1. Short title. This Act may be cited as the Port Development Revolving Loan Program Act.

Section 5. Port development loans and grants.

(a) The Department of Commerce and Economic Opportunity is authorized to provide grants or interest-free or below market rate loans to port districts in the State for the purposes of enhancing the use of Illinois' navigable waterways and developing inland inter-modal freight facilities within the State.

(b) Grants and loans are authorized for the purposes designated in this Section, but only when the applicant demonstrates to the Department that it is unable to finance the projects from its own revenue sources or funds.

(c) Grant moneys under this Section shall be used by the port district for eligible project costs that are within the scope of powers and responsibilities granted in the port district's enabling legislation. Eligible project costs must relate to inter-modal freight facilities and may include, without limitation, establishing or improving roadways, railroads, and approaches, whether by land or water, to any terminal, terminal facility, or port facility; construction, repair, or removal of any port, terminal, terminal facility, or port facility hazard; or the removal or relocation of private facilities or structures that inhibit the transfer of inter-modal freight at the port facility.

(e) The Department shall provide financing to port districts based on criteria established by the Department.

Section 10. Port development loan and grant conditions. Port development loans and grants awarded by the Department are subject to the following conditions:

(a) Financial assistance through the loans or grants must be used for projects authorized under this Act.

(b) With respect to port development loans, the Department shall determine the interest rate, if any, that the loans shall bear. The Department shall set the terms and conditions for repayment of the loans. The repayment period shall not exceed 20 years.

(c) Repayments of principal and interest on loans made and any funds collected because of a default or failure to comply with the terms or conditions of a loan under this program shall be paid into the Port Development Revolving Loan Fund.

(d) The Department may take whatever actions are necessary or appropriate to protect the State's interest in the event of default, foreclosure, or noncompliance with the terms and conditions of the loans or grants provided under this Act, including the power to sell, dispose, lease, or rent, upon terms and conditions deemed to be appropriate by the Department, real or personal property which the Department may receive as a result thereof.

Section 15. Port Development Revolving Loan Fund.

(a) The Port Development Revolving Loan Fund is created as a special fund in the State Treasury. The Department shall have the authority to make expenditures from the Fund, pursuant to appropriations in furtherance of the purposes of this Act. The State Treasurer shall be custodian of the Fund and may invest funds in securities constituting direct obligations of the United States Government, or in obligations the principal of and interest on which are guaranteed by the United States Government, or in certificates of deposit of any State or national bank that are fully secured by obligations guaranteed as to principal and interest by the United States Government.

(b) Moneys shall be deposited in the Fund from the following sources:

(1) all receipts, including principal and interest payments and royalties, from any loan agreement made from the Fund or pursuant to this Act entered into by the Department;

(2) all proceeds of assets of whatever nature received by the Department as a result of default or delinquency with respect to loan agreements made from the Fund or from direct appropriations by the General Assembly, including proceeds from the sale, disposal, lease, or rental of real or personal property that the Department may receive as a result thereof;

(3) any appropriations, grants, or gifts made to the Fund; and

(4) any income received from interest on investments of moneys in the Fund.

Section 90. The State Finance Act is amended by adding Section 5.675 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The Port Development Revolving Loan Fund.

Section 99. Effective date. This Act takes effect July 1, 2007.