101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5771

 

Introduced , by Rep. Joe Sosnowski

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Finance Authority Act. Creates the Five Year Loan Law as a new Article in the Illinois Finance Authority Act. Provides that the Illinois Finance Authority shall establish a Five Year Loan Office within the Authority. Provides further requirements concerning the operation of the Five Year Loan Office and the issuance of loans. Provides requirements concerning financing and charges related to the issuance of loans. Creates the Five Year Loan Office Advisory Board to oversee the operation of the Five Year Loan Office. Provides for the membership meetings, and powers of the Advisory Board. Provides for administrative support of the Advisory Board. Provides for the use of federal aid money. Provides for the adoption of rules, including emergency rules. Provides reporting requirements. Creates the Illinois Five Year Loan Fund as a special fund in the State treasury. Repeals the Five Year Loan Law Article on January 1, 2030. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Amends the State Finance Act to create the Illinois Five Year Loan Fund. Makes conforming changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Administrative Procedure Act is
5amended by adding Section 5-45.1 as follows:
 
6    (5 ILCS 100/5-45.1 new)
7    Sec. 5-45.1. Emergency rulemaking; Five Year Loan Law. To
8provide for the expeditious and timely implementation of the
9Five Year Loan Law, emergency rules implementing the Five Year
10Loan Law may be adopted in accordance with Section 5-45 by the
11Illinois Finance Authority. The adoption of emergency rules
12authorized by Section 5-45 and this Section is deemed to be
13necessary for the public interest, safety, and welfare.
14    This Section is repealed on January 1, 2026.
 
15    Section 10. The Illinois Finance Authority Act is amended
16by changing Section 801-1 and by adding Article 850 as follows:
 
17    (20 ILCS 3501/801-1)
18    Sec. 801-1. Short Title. Articles 801 through 850 845 of
19this Act may be cited as the Illinois Finance Authority Act.
20References to "this Act" in Articles 801 through 850 845 are
21references to the Illinois Finance Authority Act.

 

 

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1(Source: P.A. 95-331, eff. 8-21-07.)
 
2    (20 ILCS 3501/Art. 850 heading new)
3
ARTICLE 850
4
FIVE YEAR LOAN LAW

 
5    (20 ILCS 3501/850-1 new)
6    Sec. 850-1. Article title. This Article may be referred to
7as the Five Year Loan Law.
 
8    (20 ILCS 3501/850-5 new)
9    Sec. 850-5. Purpose. The purpose of this Article is to
10provide medium-term financial assistance to individuals that
11are residing within Illinois and to businesses domiciled within
12Illinois as of the effective date of this amendatory Act of the
13101st General Assembly.
 
14    (20 ILCS 3501/850-10 new)
15    Sec. 850-10. Five Year Loan Office.
16    (a) The Authority shall establish a Five Year Loan Office
17within the Authority. The Office shall implement and administer
18the requirements of this Article. The Executive Director of the
19Authority shall appoint a Director as head of the Office who
20shall be under the authority of the Executive Director.
21    (b) The Five Year Loan Office shall loan money from the
22Illinois Five Year Loan Fund to eligible persons under this

 

 

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1Article. Each loan shall mature not more than 5 years after the
2date from which it is made. No loan made under this Article
3shall be made on a date later than 12 months after the
4effective date of this amendatory Act of the 101st General
5Assembly.
 
6    (20 ILCS 3501/850-15 new)
7    Sec. 850-15. Financing and charges. No loan made under this
8Article shall: (i) bear principal repayment charges until the
9expiration of 6 months after the loan is made; (ii) bear
10interest until the expiration of 12 months after the loan is
11made; or (iii) change loan-origination charges or
12loan-commencement fees of any sort.
 
13    (20 ILCS 3501/850-20 new)
14    Sec. 850-20. Five Year Loan Office Advisory Board.
15    (a) The Five Year Loan Office Advisory Board is hereby
16created within the Authority to oversee the operation of the
17Five Year Loan Office.
18    (b) The Advisory Board shall consist of the following
19members: (i) 2 persons appointed by the Governor, one of whom
20shall be the chairperson of the Advisory Board; (ii) the
21Executive Director of the Authority, or his or her designate;
22(iii) one person appointed by the Governor who is designated by
23the largest Illinois banking association within the State; (iv)
24one person appointed by the Governor who is designated by the

 

 

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1largest Illinois community banking association within the
2State; (v) one person appointed by the Governor who is
3designated by the largest association representing Illinois
4small businesses within the State; and (vi) one person
5appointed by the Director of Employment Security to represent
6the interests of unemployed individuals.
7    (c) The Advisory Board shall meet at least once every
8quarter. Members of the Advisory Board shall receive no
9compensation for serving as members. The Advisory Board shall
10have access to all of the books and records of the Five Year
11Loan Office created under this Article. The Advisory Board is
12exempt from the provisions of the Open Meetings Act requiring
13that the members of a public body meet in person. The Authority
14shall provide administrative and other support to the Advisory
15Board.
 
16    (20 ILCS 3501/850-25 new)
17    Sec. 850-25. Federal aid. Any moneys, and any loan
18authority to use such moneys, from the federal government
19allocated to Illinois in response to the economic conditions of
20calendar year 2020 for the purpose of providing loan assistance
21to affected individuals and small businesses shall be deposited
22into the Illinois Five Year Loan Fund and loaned out as
23provided under this Article.
 
24    (20 ILCS 3501/850-30 new)

 

 

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1    Sec. 850-30. Rules. The Authority shall adopt rules,
2including emergency rules under Section 5-45 of the Illinois
3Administrative Procedure Act, to implement the provisions of
4this Article.
 
5    (20 ILCS 3501/850-35 new)
6    Sec. 850-35. Reports. The Five Year Loan Office shall
7prepare and file quarterly reports with the Governor and
8General Assembly on the implementation of this Article. Each
9report shall be submitted on or before April 30, July 31,
10October 31, and January 31 of each calendar year that this
11Article is in effect, with each report serving as an
12opportunity to summarize the implementation of this Article
13during the calendar quarter concluding one month before each
14reporting deadline. The January 31 report shall also serve as a
15report summarizing the implementation and administration of
16this Article for the previous calendar year, including any
17suggestions for improving the services provided under this
18Article.
 
19    (20 ILCS 3501/850-40 new)
20    Sec. 850-40. Illinois Five Year Loan Fund. The Illinois
21Five Year Loan Fund is created as a special fund in the State
22treasury. Moneys in the Illinois Five Year Loan Fund, subject
23to appropriation, shall be used for issuing loans as provided
24under this Article.
 

 

 

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1    (20 ILCS 3501/850-45 new)
2    Sec. 850-45. Repeal. This Article is repealed on January 1,
32030.
 
4    Section 15. The State Finance Act is amended by adding
5Section 5.930 as follows:
 
6    (30 ILCS 105/5.930 new)
7    Sec. 5.930. The Illinois Five Year Loan Fund.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 100/5-45.1 new
4    20 ILCS 3501/801-1
5    20 ILCS 3501/Art. 850
6    heading new
7    20 ILCS 3501/850-1 new
8    20 ILCS 3501/850-5 new
9    20 ILCS 3501/850-10 new
10    20 ILCS 3501/850-15 new
11    20 ILCS 3501/850-20 new
12    20 ILCS 3501/850-25 new
13    20 ILCS 3501/850-30 new
14    20 ILCS 3501/850-35 new
15    20 ILCS 3501/850-40 new
16    20 ILCS 3501/850-45 new
17    30 ILCS 105/5.930 new