96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3474

 

Introduced 2/10/2010, by Sen. A. J. Wilhelmi

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3501/825-105 new

    Amends the Illinois Finance Authority Act. Authorizes the Authority to adopt implementing regulations for the American Recovery and Reinvestment Act of 2009 (ARRA). Contains provisions concerning recovery zones, allocations and reallocations under ARRA, bond authorizations, and other matters. Effective immediately.


LRB096 18334 RCE 33711 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3474 LRB096 18334 RCE 33711 b

1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Finance Authority Act is amended by
5 adding Section 825-105 as follows:
 
6     (20 ILCS 3501/825-105 new)
7     Sec. 825-105. Implementation of ARRA economic development
8 incentives; recovery zone bonds and qualified energy
9 conservation bonds.
10     (a) Definitions.
11         (i) "ARRA" means, collectively, the American Recovery
12     and Reinvestment Act of 2009, including, without
13     limitation, Sections 54D, 1400U-1, 1400U-2, and 1400U-3 of
14     the Code; the guidance provided by the Internal Revenue
15     Service; and any legislation subsequently adopted by the
16     United States Congress to extend or expand the economic
17     development bond financing incentives authorized by ARRA.
18         (ii) "ARRA implementing regulations" means the
19     regulations promulgated by the Authority as further
20     described in subsection (c) to implement the provisions of
21     this Section.
22         (iii) "Code" means the Internal Revenue Code of 1986,
23     as amended.

 

 

SB3474 - 2 - LRB096 18334 RCE 33711 b

1         (iv) "Large local government" means any municipality
2     or county if that municipality or county has a population
3     of 100,000 or more.
4         (v) "Qualified energy conservation bond allocation"
5     means an allocation of authority to issue qualified energy
6     conservation bonds granted pursuant to Section 54D of the
7     Code.
8         (vi) "Qualified energy conservation bond" means any
9     qualified energy conservation bond issued pursuant to
10     Section 54D of the Code.
11         (vii) "Recovery zone" means any area designated
12     pursuant to Section 1400U-1 of the Code.
13         (viii) "Recovery zone bond" means any recovery zone
14     economic development bond or recovery zone facility bond
15     issued pursuant to Sections 1400U-2 and 1400U-3,
16     respectively, of the Code.
17         (ix) "Recovery zone bond allocation" means an
18     allocation of authority to issue recovery zone bonds
19     granted pursuant to Section 1400U-1 of the Code.
20     (b) Findings.
21         (i) It is found and declared that it is in the public
22     interest and for the benefit of the State to maximize the
23     use of economic development incentives authorized by ARRA.
24     These incentives include the following: (A) establishment
25     of recovery zones; (B) issuance of recovery zone bonds to
26     promote job creation and economic development in recovery

 

 

SB3474 - 3 - LRB096 18334 RCE 33711 b

1     zones; and (C) issuance of qualified energy conservation
2     bonds to promote energy conservation and job creation.
3         (ii) The Authority can ensure that these economic
4     development incentives are used to the maximum extent
5     feasible by adopting regulations that provide for the
6     following: (A) the establishment of recovery zones in
7     accordance with the requirements of ARRA; (B) the
8     reallocation of recovery zone bond allocations made
9     pursuant to the provisions of ARRA that will not to be used
10     before the date by which the authorization to issue those
11     bonds expires; and (C) the allocation of the State's
12     qualified energy conservation bond authorization to large
13     local governments in accordance with the requirements of
14     ARRA, as well as the reallocation of such initial
15     allocations that will not otherwise be used to achieve the
16     energy conservation and job creation objectives of ARRA.
17     (c) Adoption of ARRA implementing regulations.
18         (i) The Authority is authorized to adopt regulations
19     providing for the establishment of recovery zones subject
20     to the requirements of ARRA and to establish recovery zones
21     pursuant to those regulations. In adopting the regulations
22     and in establishing recovery zones, the Authority shall
23     consult with the Governor's Office of Management and Budget
24     and the Department of Commerce and Economic Opportunity.
25         (ii) The Authority is authorized to adopt regulations
26     providing for the reallocation of the allocations

 

 

SB3474 - 4 - LRB096 18334 RCE 33711 b

1     initially made pursuant to ARRA for the issuance of
2     recovery zone bonds. In adopting the regulations, the
3     Authority shall consult with the Governor's Office of
4     Management and Budget and the Department of Commerce and
5     Economic Opportunity.
6         (iii) The Authority is authorized to adopt regulations
7     providing for the allocation of the State's qualified
8     energy conservation bond authorization, in accordance with
9     the requirements of ARRA, as well as regulations providing
10     for the subsequent reallocation of such initial
11     allocation, all in order to fully achieve the energy
12     conservation and job creation objectives of ARRA. In
13     adopting the regulations, the Authority shall consult with
14     the Governor's Office of Management and Budget and the
15     Department of Commerce and Economic Opportunity.
16         (iv) The ARRA implementation regulations adopted by
17     the Authority shall not authorize: (1) any reallocation of
18     a recovery zone bond allocation or qualified energy
19     conservation bond allocation prior to 90 days after the
20     effective date of this amendatory Act of the 96th General
21     Assembly; and (2) any reallocation of a recovery zone bond
22     allocation or a qualified energy conservation bond
23     allocation made to any home rule unit without the consent
24     of that unit of government. The ARRA implementation
25     regulations shall provide for the voluntary waiver by any
26     home rule unit of any or all of the recovery zone bond

 

 

SB3474 - 5 - LRB096 18334 RCE 33711 b

1     allocation or qualified energy conservation bond
2     allocation initially received by that governmental unit
3     pursuant to ARRA.
 
4     Section 99. Effective date. This Act takes effect upon
5 becoming law.