Illinois General Assembly - Full Text of HB3562
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Full Text of HB3562  93rd General Assembly

HB3562eng 93rd General Assembly


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 1        AN ACT concerning economic recovery.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1.  Short title. This Act may  be  cited  as  the
 5    Economic Recovery Act.

 6        Section  5.  Legislative intent. It is hereby declared to
 7    be the purpose of this  Act  and  of  the  Illinois  Economic
 8    Recovery Program created by this Act to develop a diversified
 9    State  economy,  to  assist  business enterprise in obtaining
10    additional  sources  of  financing,  to  aid  this  State  in
11    achieving the goal of long-term economic growth, to  preserve
12    existing  jobs,  to  create  new  jobs,  and to foster export
13    activity.

14        Section 10.  Definitions. (Blank.)

15        Section 15.  Illinois Economic Recovery Program.
16        (a)  There is created a public body corporate and politic
17    that  shall  be  known  as  the  Illinois  Economic  Recovery
18    Program.
19        (b)  The powers and duties of the Program are  vested  in
20    and shall be exercised by a Board of Directors.
21        (c)  The Board shall consist of 7 members, no more than 4
22    of  whom  may be of the same political party, 5 of whom shall
23    be appointed by the Governor, by and with the consent of  the
24    Senate.   The   Lieutenant   Governor,  ex  officio,  or  the
25    Lieutenant Governor's designee shall serve as a member of the
26    Board, and the Lieutenant Governor shall appoint one  member.
27    If  the Governor does not appoint these members by January 1,
28    2004, this appointment power is transferred to the Lieutenant
29    Governor with the advice and consent of the Senate. Three  of
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 1    the  appointed  Board  members  shall  be  current  or former
 2    commercial or investment bankers. The remaining members shall
 3    be representatives of the private sector. No  person  may  be
 4    appointed  as  a  member  of  the  Board who is serving as an
 5    elected official for the State or an employee of the State or
 6    any unit of local government or school  district  within  the
 7    State.  The  Chairman  shall  be  elected  annually  from the
 8    members of the Board. All members shall be residents  of  the
 9    State  and shall be knowledgeable in the field of finance. If
10    the Senate is not in session when the first appointments  are
11    made,  the  Governor  shall make temporary appointments as in
12    the case of a vacancy. In making the first appointments,  the
13    Governor  shall designate 3 members to serve until January of
14    2005 and 2 members to serve until January of 2006,  or  until
15    their  successors  are  appointed  and  qualified. The member
16    appointed  by  the  Lieutenant  Governor  shall  serve  until
17    January of 2007,  or  until  a  successor  is  appointed  and
18    qualified.  Their  successors shall be appointed to serve for
19    3-year terms expiring on the third Monday in January or until
20    their successors are appointed  and  qualified.  Any  vacancy
21    occurring  on  the  Board,  whether by death, resignation, or
22    otherwise, shall be filled by appointment by the Governor  or
23    Lieutenant  Governor,  as the case may be, in the same manner
24    as original  appointments.  A  member  appointed  to  fill  a
25    vacancy  shall  serve for the remainder of the unexpired term
26    or until his or her successor is qualified.

27        Section 20.  Related financial interests.  No  member  of
28    the  Board  shall  be employed by, hold any official relation
29    to, or have any financial  interest  in  any  corporation  or
30    entity receiving loans, advances, or grants under this Act or
31    in  any corporation or entity providing services or materials
32    to the Board or to any economic recovery project financed  or
33    assisted under this Act.
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 1        Section  25.  Illinois  Economic  Recovery Program powers
 2    and duties. The Program shall have the powers necessary to or
 3    convenient  to  carry  out  and  effectuate   the   purposes,
 4    objectives,  and  provisions  of  this  Act, the purposes and
 5    objectives of the Program, and the powers delegated by  other
 6    law  including,  but  not  limited  to,  the  power to do the
 7    following:
 8             (1)  Sue and be sued; to have a seal and  alter  the
 9        same  at pleasure; to have perpetual succession; to make,
10        execute, and deliver contracts,  conveyances,  and  other
11        instruments  necessary  or  convenient to the exercise of
12        its powers; and to make and amend bylaws.
13             (2)  Solicit and accept gifts,  grants,  loans,  and
14        other  aids  from any person, foundation, or the federal,
15        State, or  a  local  government  or  any  agency  of  the
16        federal,  State, or a local government, or to participate
17        in  any  other  way  in  any  federal,  State,  or  local
18        government program.
19             (3)  Procure   insurance   against   any   loss   in
20        connection  with  the  Program's  property,  assets,   or
21        activities.
22             (4)  Invest  any  money of the Fund at the Program's
23        discretion, in any obligations determined proper  by  the
24        Program, and name and use depositories for its money. The
25        Board   shall   perform   the  custodial  and  investment
26        functions of the Program.
27             (5)  Engage personnel as necessary, and  engage  the
28        services  of  private consultants, managers, counsel, and
29        auditors  for  rendering  professional   management   and
30        technical assistance and advice, payable out of any money
31        of the fund legally available for this purpose.
32             (6)  Charge, impose, and collect fees and charges in
33        connection   with   any   transaction   and  provide  for
34        reasonable penalties for delinquent payment  of  fees  or
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 1        charges.
 2             (7)  Do  all other things necessary or convenient to
 3        achieve the objectives and purposes of the Program,  this
 4        Act,  or  other  laws  that  relate  to  the purposes and
 5        responsibilities of the Program.
 6             (8)  The  Board  shall  establish,  implement,   and
 7        operate  a  Portfolio  Risk  Insurance  Reserve  Fund  as
 8        defined in this Act.

 9        Section  30.  Annual  status  report;  audit;  evaluation
10    procedures.  The  accounts and the books of the Program shall
11    be set up and maintained in a manner approved by the  Auditor
12    General,  and the Program shall file with the Auditor General
13    a certified annual report within 120 days after the close  of
14    the  fiscal  year.  The  Program  shall  also  file  with the
15    Governor, the Secretary of the Senate, the Clerk of the House
16    of Representatives, and  the  Illinois  Economic  and  Fiscal
17    Commission,  by  March  1  of  each  year,  a  written report
18    covering its activities for the previous calendar  year,  and
19    when  so  filed, the report shall be a public record and open
20    for inspection at the offices of the  Program  during  normal
21    business  hours.  The  report  shall include, but need not be
22    limited to, the following:
23             (1)  The name  and  location  of  all  participating
24        financial institutions under the Program.
25             (2)  A  record  of loan and reserve fund activity in
26        each participating financial institution's account.
27             (3)  A list of the number and  type  of  persons  or
28        entities,  by  financial institution, assisted under this
29        Act.
30             (4)  The duration, type, amount, and status of loans
31        made, by financial institution, under this Act.
32             (5)  A list of loss  claims  on  each  participating
33        financial  institution's account by name of the person or
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 1        entity that defaulted on the loan.
 2             (6)  The projected activities of the Program for the
 3        next  fiscal  year  including  the  amount  of  financial
 4        assistance needed to operate the Program.

 5        Section 35.  Operations of the Board.
 6        (a)  As soon as practical after creation of the  Program,
 7    the  Board  shall  hold  a  meeting  at  which the bylaws and
 8    schedule of regular meetings shall be adopted. The bylaws and
 9    schedule may be amended from time to time at the will of  the
10    Board.
11        (b)  Initial  operating staff and expenses of the Program
12    shall be provided by  appropriations  lawfully  made  by  the
13    General  Assembly.  As  soon  as  may be practical, the Board
14    shall provide for its  expenses  and  payment  of  employees,
15    including  salaries  and  contractual  agreements,  from  its
16    operations  from up to one-half of the investment earnings of
17    the Fund. The remainder of the  investment  earnings  on  the
18    fund shall be reinvested in the Fund by the Board.

19        Section   40.  Portfolio  Risk  Insurance  Reserve  Fund;
20    establishment and operation. There is hereby created  outside
21    of  the  State  treasury  a  special  fund to be known as the
22    Portfolio Risk Insurance Reserve Fund. The  General  Assembly
23    shall  appropriate  from  such  funds as the General Assembly
24    deems necessary and sufficient  to  maintain  the  Fund.  The
25    Board shall be the custodian of the Fund.

26        Section   45.  Loan   Insurance  Account;  payments  into
27    accounts; transfer of money.
28        (a)  The Fund shall initially consist of  $10,000,000  or
29    such  other amounts appropriated by the General Assembly. The
30    Fund shall be established and managed by the Board and  shall
31    consist of an unallocated account and accounts established by
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 1    participating financial institutions.
 2        (b)  The  Board  shall  also  pay into the Fund any money
 3    appropriated or otherwise provided  by  this  State  for  the
 4    purposes  of  this Act; and any other money made available to
 5    the Program for the purposes  of  this  Act  from  any  other
 6    source, public or private.
 7        (c)  Any  financial institution, as provided in this Act,
 8    may participate in the  Illinois  Economic  Recovery  Program
 9    upon  signing  a  participation agreement with the Program. A
10    Loan Insurance Account shall be established in  the  name  of
11    each  financial institution participating in the Program. The
12    Board may add money  to  this  account  from  the  Fund,  the
13    participating  financial institution, and persons or entities
14    borrowing from that financial institution under the  Illinois
15    Economic  Recovery  Program. Money may be withdrawn from this
16    account only by the participating  financial  institution  as
17    prescribed  in Section 50 or by the Board if a transaction is
18    deemed voidable as prescribed in Section 20. This account  is
19    between   the   Program   and   the  participating  financial
20    institution  and  is  not  affected  by  other  participating
21    financial institutions.

22        Section 50.  Agreements with lenders. The agreements with
23    lenders for participation in the Illinois  Economic  Recovery
24    Program  may  include,  but  need  not  be  limited  to,  the
25    following:
26             (1)  Authorization  for  the  lender  to  determine,
27        collect, and transmit to the Fund a fee or premium charge
28        based  upon  the  amount of the loan to be covered by the
29        loan  insurance  account   within   a   specified   range
30        established  consistent  with the purposes and objectives
31        of the Program.
32             (2)  Specification of  whether  the  premium  charge
33        shall  be  paid by the lender, the borrower, the Program,
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 1        or by a combination thereof in  specified  portions.  The
 2        premium  charges  paid by the borrower and the lender may
 3        be financed.
 4             (3)  The procedure by which  a  lender  may  make  a
 5        claim  upon  the account upon default by the borrower and
 6        the conditions under which a claim may be made.
 7             (4)  The maximum amount of claims a lender may  make
 8        upon the Fund. That amount may be equal to, greater than,
 9        or  less  than  its  proportion  of  the  total  premiums
10        collected by the Fund.

11        Section  55.  Illinois  Economic  Recovery Fund. There is
12    hereby created in the State treasury a  special  Fund,  which
13    shall  be known as the Illinois Economic Recovery Fund, which
14    shall be maintained subject to appropriation for purposes  of
15    economic  investment  in  the  future  economic  strength  of
16    Illinois.

17        Section  95.  The  State Finance Act is amended by adding
18    Section 5.595 as follows:

19        (30 ILCS 105/5.595 new)
20        Sec. 5.595.  The Illinois Economic Recovery Fund.