SB1262 EnrolledLRB099 03635 AWJ 23643 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Upper Illinois River Valley Development
5Authority Act is amended by changing Sections 4 and 7 as
6follows:
 
7    (70 ILCS 530/4)  (from Ch. 85, par. 7154)
8    Sec. 4. Establishment.
9    (a) There is hereby created a political subdivision, body
10politic and municipal corporation named the Upper Illinois
11River Valley Development Authority. The territorial
12jurisdiction of the Authority is that geographic area within
13the boundaries of Grundy, LaSalle, Bureau, Putnam, Kendall,
14Kane, Lake, McHenry, and Marshall counties in the State of
15Illinois and any navigable waters and air space located
16therein.
17    (b) The governing and administrative powers of the
18Authority shall be vested in a body consisting of 21 20 members
19including, as ex officio members, the Director of Commerce and
20Economic Opportunity, or his or her designee, and the Director
21of the Department of Central Management Services, or his or her
22designee. The other 19 18 members of the Authority shall be
23designated "public members", 10 of whom shall be appointed by

 

 

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1the Governor with the advice and consent of the Senate and 9 8
2of whom shall be appointed one each by the county board
3chairmen of Grundy, LaSalle, Bureau, Putnam, Kendall, Kane,
4Lake, McHenry, and Marshall counties. All public members shall
5reside within the territorial jurisdiction of this Act. Eleven
6members shall constitute a quorum. The public members shall be
7persons of recognized ability and experience in one or more of
8the following areas: economic development, finance, banking,
9industrial development, small business management, real estate
10development, community development, venture finance, organized
11labor or civic, community or neighborhood organization. The
12Chairman of the Authority shall be elected by the Board
13annually from the 9 8 members appointed by the county board
14chairmen.
15    (c) The terms of all initial members of the Authority shall
16begin 30 days after the effective date of this Act. Of the 14
17public members appointed pursuant to this Act, 4 appointed by
18the Governor shall serve until the third Monday in January,
191992, 4 appointed by the Governor shall serve until the third
20Monday in January, 1993, one appointed by the Governor shall
21serve until the third Monday in January, 1994, one appointed by
22the Governor shall serve until the third Monday in January
231999, the member appointed by the county board chairman of
24LaSalle County shall serve until the third Monday in January,
251992, the members appointed by the county board chairmen of
26Grundy County, Bureau County, Putnam County, and Marshall

 

 

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1County shall serve until the third Monday in January, 1994, and
2the member appointed by the county board chairman of Kendall
3County shall serve until the third Monday in January, 1999. The
4initial members appointed by the chairmen of the county boards
5of Kane and McHenry counties shall serve until the third Monday
6in January, 2003. The initial members appointed by the chairman
7of the county board of Lake County shall serve until the third
8Monday in January, 2018. All successors shall be appointed by
9the original appointing authority and hold office for a term of
103 years commencing the third Monday in January of the year in
11which their term commences, except in case of an appointment to
12fill a vacancy. Vacancies occurring among the public members
13shall be filled for the remainder of the term. In case of
14vacancy in a Governor-appointed membership when the Senate is
15not in session, the Governor may make a temporary appointment
16until the next meeting of the Senate when a person shall be
17nominated to fill such office, and any person so nominated who
18is confirmed by the Senate shall hold office during the
19remainder of the term and until a successor shall be appointed
20and qualified. Members of the Authority shall not be entitled
21to compensation for their services as members but shall be
22entitled to reimbursement for all necessary expenses incurred
23in connection with the performance of their duties as members.
24    (d) The Governor may remove any public member of the
25Authority in case of incompetency, neglect of duty, or
26malfeasance in office.

 

 

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1    (e) The Board shall appoint an Executive Director who shall
2have a background in finance, including familiarity with the
3legal and procedural requirements of issuing bonds, real estate
4or economic development and administration. The Executive
5Director shall hold office at the discretion of the Board. The
6Executive Director shall be the chief administrative and
7operational officer of the Authority, shall direct and
8supervise its administrative affairs and general management,
9shall perform such other duties as may be prescribed from time
10to time by the members and shall receive compensation fixed by
11the Authority. The Executive Director shall attend all meetings
12of the Authority; however, no action of the Authority shall be
13invalid on account of the absence of the Executive Director
14from a meeting. The Authority may engage the services of such
15other agents and employees, including attorneys, appraisers,
16engineers, accountants, credit analysts and other consultants,
17as it may deem advisable and may prescribe their duties and fix
18their compensation.
19    (f) The Board may, by majority vote, nominate up to 4
20non-voting members for appointment by the Governor. Non-voting
21members shall be persons of recognized ability and experience
22in one or more of the following areas: economic development,
23finance, banking, industrial development, small business
24management, real estate development, community development,
25venture finance, organized labor or civic, community or
26neighborhood organization. Non-voting members shall serve at

 

 

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1the pleasure of the Board. All non-voting members may attend
2meetings of the Board and shall be reimbursed as provided in
3subsection (c).
4    (g) The Board shall create a task force to study and make
5recommendations to the Board on the economic development of the
6territory within the jurisdiction of this Act. The members of
7the task force shall reside within the territorial jurisdiction
8of this Act, shall serve at the pleasure of the Board and shall
9be persons of recognized ability and experience in one or more
10of the following areas: economic development, finance,
11banking, industrial development, small business management,
12real estate development, community development, venture
13finance, organized labor or civic, community or neighborhood
14organization. The number of members constituting the task force
15shall be set by the Board and may vary from time to time. The
16Board may set a specific date by which the task force is to
17submit its final report and recommendations to the Board.
18(Source: P.A. 94-793, eff. 5-19-06.)
 
19    (70 ILCS 530/7)  (from Ch. 85, par. 7157)
20    Sec. 7. Bonds.
21    (a) The Authority, with the written approval of the
22Governor, shall have the continuing power to issue bonds,
23notes, or other evidences of indebtedness in an aggregate
24amount outstanding not to exceed $500,000,000 for the purpose
25of developing, constructing, acquiring or improving projects,

 

 

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1including those established by business entities locating or
2expanding property within the territorial jurisdiction of the
3Authority, for entering into venture capital agreements with
4businesses locating or expanding within the territorial
5jurisdiction of the Authority, for acquiring and improving any
6property necessary and useful in connection therewith and for
7the purposes of the Employee Ownership Assistance Act. For the
8purpose of evidencing the obligations of the Authority to repay
9any money borrowed, the Authority may, pursuant to resolution,
10from time to time issue and dispose of its interest bearing
11revenue bonds, notes or other evidences of indebtedness and may
12also from time to time issue and dispose of such bonds, notes
13or other evidences of indebtedness to refund, at maturity, at a
14redemption date or in advance of either, any bonds, notes or
15other evidences of indebtedness pursuant to redemption
16provisions or at any time before maturity. All such bonds,
17notes or other evidences of indebtedness shall be payable
18solely and only from the revenues or income to be derived from
19loans made with respect to projects, from the leasing or sale
20of the projects or from any other funds available to the
21Authority for such purposes. The bonds, notes or other
22evidences of indebtedness may bear such date or dates, may
23mature at such time or times not exceeding 40 years from their
24respective dates, may bear interest at such rate or rates not
25exceeding the maximum rate permitted by "An Act to authorize
26public corporations to issue bonds, other evidences of

 

 

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1indebtedness and tax anticipation warrants subject to interest
2rate limitations set forth therein", approved May 26, 1970, as
3amended, may be in such form, may carry such registration
4privileges, may be executed in such manner, may be payable at
5such place or places, may be made subject to redemption in such
6manner and upon such terms, with or without premium as is
7stated on the face thereof, may be authenticated in such manner
8and may contain such terms and covenants as may be provided by
9an applicable resolution.
10    (b-1) The holder or holders of any bonds, notes or other
11evidences of indebtedness issued by the Authority may bring
12suits at law or proceedings in equity to compel the performance
13and observance by any corporation or person or by the Authority
14or any of its agents or employees of any contract or covenant
15made with the holders of such bonds, notes or other evidences
16of indebtedness, to compel such corporation, person, the
17Authority and any of its agents or employees to perform any
18duties required to be performed for the benefit of the holders
19of any such bonds, notes or other evidences of indebtedness by
20the provision of the resolution authorizing their issuance and
21to enjoin such corporation, person, the Authority and any of
22its agents or employees from taking any action in conflict with
23any such contract or covenant.
24    (b-2) If the Authority fails to pay the principal of or
25interest on any of the bonds or premium, if any, as the same
26become due, a civil action to compel payment may be instituted

 

 

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1in the appropriate circuit court by the holder or holders of
2the bonds on which such default of payment exists or by an
3indenture trustee acting on behalf of such holders. Delivery of
4a summons and a copy of the complaint to the Chairman of the
5Board shall constitute sufficient service to give the circuit
6court jurisdiction of the subject matter of such a suit and
7jurisdiction over the Authority and its officers named as
8defendants for the purpose of compelling such payment. Any
9case, controversy or cause of action concerning the validity of
10this Act relates to the revenue of the State of Illinois.
11    (c) Notwithstanding the form and tenor of any such bonds,
12notes or other evidences of indebtedness and in the absence of
13any express recital on the face thereof that it is
14non-negotiable, all such bonds, notes and other evidences of
15indebtedness shall be negotiable instruments. Pending the
16preparation and execution of any such bonds, notes or other
17evidences of indebtedness, temporary bonds, notes or evidences
18of indebtedness may be issued as provided by ordinance.
19    (d) To secure the payment of any or all of such bonds,
20notes or other evidences of indebtedness, the revenues to be
21received by the Authority from a lease agreement or loan
22agreement shall be pledged, and, for the purpose of setting
23forth the covenants and undertakings of the Authority in
24connection with the issuance thereof and the issuance of any
25additional bonds, notes or other evidences of indebtedness
26payable from such revenues, income or other funds to be derived

 

 

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1from projects, the Authority may execute and deliver a mortgage
2or trust agreement. A remedy for any breach or default of the
3terms of any such mortgage or trust agreement by the Authority
4may be by mandamus proceedings in the appropriate circuit court
5to compel the performance and compliance therewith, but the
6trust agreement may prescribe by whom or on whose behalf such
7action may be instituted.
8    (e) Such bonds or notes shall be secured as provided in the
9authorizing ordinance which may, notwithstanding any other
10provision of this Act, include in addition to any other
11security a specific pledge or assignment of and lien on or
12security interest in any or all revenues or money of the
13Authority from whatever source which may by law be used for
14debt service purposes and a specific pledge or assignment of
15and lien on or security interest in any funds or accounts
16established or provided for by ordinance of the Authority
17authorizing the issuance of such bonds or notes.
18    (f) (Blank). In the event that the Authority determines
19that monies of the Authority will not be sufficient for the
20payment of the principal of and interest on its bonds during
21the next State fiscal year, the Chairman, as soon as
22practicable, shall certify to the Governor the amount required
23by the Authority to enable it to pay such principal of and
24interest on the bonds. The Governor shall submit the amount so
25certified to the General Assembly as soon as practicable, but
26no later than the end of the current State fiscal year. This

 

 

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1Section shall not apply to any bonds or notes as to which the
2Authority shall have determined, in the resolution authorizing
3the issuance of the bonds or notes, that this Section shall not
4apply. Whenever the Authority makes such a determination, that
5fact shall be plainly stated on the face of the bonds or notes
6and that fact shall also be reported to the Governor.
7    In the event of a withdrawal of moneys from a reserve fund
8established with respect to any issue or issues of bonds of the
9Authority to pay principal or interest on those bonds, the
10Chairman of the Authority, as soon as practicable, shall
11certify to the Governor the amount required to restore the
12reserve fund to the level required in the resolution or
13indenture securing those bonds. The Governor shall submit the
14amount so certified to the General Assembly as soon as
15practicable, but no later than the end of the current State
16fiscal year. This subsection (f) shall not apply to any bond
17issued on or after the effective date of this amendatory Act of
18the 97th General Assembly.
19    (g) The State of Illinois pledges to and agrees with the
20holders of the bonds and notes of the Authority issued pursuant
21to this Section that the State will not limit or alter the
22rights and powers vested in the Authority by this Act so as to
23impair the terms of any contract made by the Authority with
24such holders or in any way impair the rights and remedies of
25such holders until such bonds and notes, together with interest
26thereon, with interest on any unpaid installments of interest,

 

 

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1and all costs and expenses in connection with any action or
2proceedings by or on behalf of such holders, are fully met and
3discharged. In addition, the State pledges to and agrees with
4the holders of the bonds and notes of the Authority issued
5pursuant to this Section that the State will not limit or alter
6the basis on which State funds are to be paid to the Authority
7as provided in this Act, or the use of such funds, so as to
8impair the terms of any such contract. The Authority is
9authorized to include these pledges and agreements of the State
10in any contract with the holders of bonds or notes issued
11pursuant to this Section.
12    (h) (Blank).
13(Source: P.A. 97-312, eff. 8-11-11; 98-750, eff. 1-1-15.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.