SB3458 103RD GENERAL ASSEMBLY

LRB103 36608 JAG 66717 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3458

Introduced 2/8/2024, by Sen. Michael W. Halpin

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.1015 new

Creates the Resilient Illinois Revolving Loan Fund Act. Establishes the Resilient Illinois Revolving Loan Fund as a special fund in the State treasury. Provides that moneys in the Fund shall be used to provide low-interest or no-interest loans to counties and nonprofit organizations for local resilience projects that address mitigation of hazards. Specifies that moneys in the Fund may also be used for administrative support associated with the Fund, including the hiring of necessary staff. Tasks the Illinois Emergency Management Agency and Office of Homeland Security with the Fund's administration. Requires the Director of the Illinois Emergency Management Agency and Office of Homeland Security (IEMA-OHS) to apply to the Federal Emergency Management Agency when funding is available under the federal STORM Act to capitalize the Fund. Directs IEMA-OHS to prioritize providing loans to projects it determines to have the greatest impact on eliminating hazards. Provides that the Fund shall be administered, operated, and maintained to remain available in perpetuity to provide loans and other financial assistance. Requires the Agencies to establish application procedures and eligibility criteria for loans from the Fund. Amends the State Finance Act to make a conforming change. Effective immediately.

A BILL FOR

AN ACT concerning safety.

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 Resilient Illinois Revolving Loan Fund Act.

Section 5. Findings; purpose.

(a) The General Assembly finds that:

(1) Congress enacted the Safeguarding Tomorrow through Ongoing Risk Mitigation (STORM) Act, enacted as Public Law 116-284, in 2021 to provide a conduit through which states can establish a revolving loan fund and make loans to local municipalities to conduct hazard mitigation and resiliency projects.

(2) As emergencies become more prevalent, it is important for the State to take advantage of as many federal funding opportunities as possible.

(b) The purpose of this Act is:

(1) to ensure that the State is ready to receive federal funds from the STORM Act by establishing the Resilient Illinois Revolving Loan Fund; and

(2) to provide administrative support for the Fund by establishing a position within the Department of Natural Resources, a position within the Environmental Protection Agency, and a position within the Illinois Emergency Management Agency and Office of Homeland Security.

Section 10. Definitions. In this Act:

"Agencies" means the Illinois Emergency Management Agency and Office of Homeland Security, the Department of Natural Resources, and the Environmental Protection Agency.

"Directors" means the Director of Natural Resources, the Director of the Environmental Protection Agency, and the Director of the Illinois Emergency Management Agency and Office of Homeland Security.

"Full-time equivalent position" means an employment position in which the employee's scheduled working hours divided by the employer's required hours for a full-time workweek equal 1.0.

"Fund" means the Resilient Illinois Revolving Loan Fund established under subsection (a) of Section 15.

"STORM Act" means the federal Safeguarding Tomorrow through Ongoing Risk Mitigation Act, enacted as Public Law 116-284.

Section 15. Resilient Illinois Revolving Loan Fund.

(a) The Resilient Illinois Revolving Loan Fund is established as a special fund in the State treasury, which shall be used and co-administered by the Environmental Protection Agency, the Department of Natural Resources, and the Illinois Emergency Management Agency and Office of Homeland Security. Notwithstanding any other law, the Fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Fund into any other fund of the State. The following moneys shall be deposited into the Fund:

(1) moneys from federal or private funding sources;

(2) moneys appropriated by the General Assembly to the Fund;

(3) investment and interest earnings of the Fund;

(4) moneys received as repayment of loans, including, but not limited to, interest and payments received on account of principal; and

(5) all other moneys received by the Fund from any other source.

(b) Moneys in the Fund shall be used to provide low-interest or no-interest loans to municipalities, counties, and nonprofit organizations for local resilience projects that address mitigation of hazards, including, but not limited to, natural disasters. Moneys in the Fund may be used for administrative support associated with the Fund, including, but not limited to, the hiring of necessary staff.

(c) Loans from the Fund shall be for a fixed loan period and may be used to satisfy the nonfederal match for federal mitigation grants.

(d) Expenditures from the Fund shall be co-administered by the Director of the Environmental Protection Agency, the Director of Natural Resources, and the Director of the Illinois Emergency Management Agency and Office of Homeland Security. When funding is available, the Directors shall apply to the Federal Emergency Management Agency under the STORM Act to capitalize the Fund. All moneys appropriated or provided from the Fund shall be expended. The Agencies shall prioritize using moneys in the fund to provide loans for projects that the Agencies determine have the greatest impact on eliminating hazards.

(e) The Fund shall be administered, operated, and maintained in order to remain available in perpetuity and to provide loans and other financial assistance under this Act and pursuant to the STORM Act. All moneys deposited or paid into the Fund and any interest earned on the balance of the Fund shall be continuously available to the Directors for expenditure consistent with this Act.

(f) The State Treasurer shall hold and invest moneys in the Fund as permitted by law.

(g) Moneys expended from the Fund shall be supplemental to and shall not take the place of funding that otherwise would be appropriated to counties for resilience projects.

(h) The Agencies shall establish application procedures and eligibility criteria for loans from the Fund. The eligibility criteria shall require that a county or nonprofit organization demonstrate:

(1) the need for a loan to address hazard mitigation; and

(2) the ability to repay the loan, if required, at a later date.

Section 20. Administrative structure and employment positions.

(a) The Agencies may each establish and fill one full-time equivalent position in order to implement and administer this Act and the Fund.

(b) The Department of Natural Resources shall be the primary administrator of the Fund, with coordination and support from the Environmental Protection Agency and the Illinois Emergency Management Agency and Office of Homeland Security.

Section 25. The State Finance Act is amended by adding Section 5.1015 as follows:

(30 ILCS 105/5.1015 new)

Sec. 5.1015. The Resilient Illinois Revolving Loan Fund.

Section 99. Effective date. This Act takes effect upon becoming law.