093_SB1754enr

 
SB1754 Enrolled                      LRB093 10661 MKM 11490 b

 1        AN ACT creating the Western Illinois Economic Development
 2    Authority.

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

 5        Section 5.  Short title. This Act may  be  cited  as  the
 6    Western Illinois Economic Development Authority Act.

 7        Section  10.  Findings.  The  General Assembly determines
 8    and declares the following:
 9        (1)  that labor surplus areas currently exist in  western
10    Illinois;
11        (2)  that the economic burdens resulting from involuntary
12    unemployment  fall,  in  part,  upon the State in the form of
13    increased need for public assistance and reduced tax revenues
14    and, in the event that the unemployed worker and his  or  her
15    family  migrate  elsewhere  to find work, the burden may also
16    fall upon  the  municipalities  and  other  taxing  districts
17    within  the  areas of unemployment in the form of reduced tax
18    revenues, thereby  endangering  their  financial  ability  to
19    support  necessary  governmental services for their remaining
20    inhabitants;
21        (3)  that the State has a responsibility to help create a
22    favorable climate for new and improved job opportunities  for
23    its citizens by encouraging the development of commercial and
24    service  businesses  and  industrial and manufacturing plants
25    within the western region of Illinois;
26        (4)  that a lack of decent housing contributes  to  urban
27    blight,  crime,  anti-social behavior, disease, a higher need
28    for  public  assistance,  reduced  tax  revenues,   and   the
29    migration of workers and their families away from areas which
30    fail to offer adequate, decent, and affordable housing;
31        (5)  that  decent,  affordable  housing  is  a  necessary
 
SB1754 Enrolled             -2-      LRB093 10661 MKM 11490 b
 1    ingredient   of  life  affording  each  citizen  basic  human
 2    dignity, a  sense  of  self-worth,  confidence,  and  a  firm
 3    foundation upon which to build a family and educate children;
 4        (6)  that  in  order  to  foster  civic  and neighborhood
 5    pride, citizens require access to  educational  institutions,
 6    recreation,  parks  and open spaces, entertainment, sports, a
 7    reliable transportation  network,  cultural  facilities,  and
 8    theaters; and
 9        (7)  that  the  main  purpose  of  this Act is to promote
10    industrial, commercial, residential, service, transportation,
11    and recreational activities and facilities, thereby  reducing
12    the  evils  attendant  upon  unemployment  and  enhancing the
13    public health, safety, morals, happiness, and general welfare
14    of the State.

15        Section 15.  Definitions. In this Act:
16        "Authority"   means   the   Western   Illinois   Economic
17    Development Authority.
18        "Governmental agency" means any federal, State, or  local
19    governmental  body and any agency or instrumentality thereof,
20    corporate or otherwise.
21        "Person" means any  natural  person,  firm,  partnership,
22    corporation,  both domestic and foreign, company, association
23    or  joint  stock  association  and  includes   any   trustee,
24    receiver, assignee or personal representative thereof.
25        "Revenue  bond"  means  any bond issued by the Authority,
26    the principal and interest of which is  payable  solely  from
27    revenues  or  income  derived from any project or activity of
28    the Authority.
29        "Board" means the  Board  of  Directors  of  the  Western
30    Illinois Economic Development Authority.
31        "Governor" means the Governor of the State of Illinois.
32        "City"  means  any  city,  village, incorporated town, or
33    township within the geographical territory of the Authority.
 
SB1754 Enrolled             -3-      LRB093 10661 MKM 11490 b
 1        "Industrial project" means the following:
 2        (1)  a capital project, including one or  more  buildings
 3    and  other  structures, improvements, machinery and equipment
 4    whether or not on the same site  or  sites  now  existing  or
 5    hereafter  acquired,  suitable  for use by any manufacturing,
 6    industrial, research, transportation or commercial enterprise
 7    including  but  not  limited  to  use  as  a  factory,  mill,
 8    processing   plant,   assembly   plant,   packaging    plant,
 9    fabricating plant, ethanol plant, office building, industrial
10    distribution  center,  warehouse, repair, overhaul or service
11    facility, freight terminal, research facility, test facility,
12    railroad facility, solid waste and wastewater  treatment  and
13    disposal   sites  and  other  pollution  control  facilities,
14    resource or waste reduction, recovery, treatment and disposal
15    facilities, and including also the sites  thereof  and  other
16    rights in land therefore whether improved or unimproved, site
17    preparation   and   landscaping  and  all  appurtenances  and
18    facilities  incidental  thereto  such  as  utilities,  access
19    roads,  railroad   sidings,   truck   docking   and   similar
20    facilities,  parking  facilities, dockage, wharfage, railroad
21    roadbed,  track,  trestle,  depot,  terminal,  switching  and
22    signaling  equipment   or   related   equipment   and   other
23    improvements necessary or convenient thereto; or
24        (2)  any   land,   buildings,   machinery   or  equipment
25    comprising an addition to or  renovation,  rehabilitation  or
26    improvement of any existing capital project.
27        "Commercial  project"  means  any project, including, but
28    not limited to, one or more buildings and  other  structures,
29    improvements, machinery, and equipment, whether or not on the
30    same  site  or  sites  now  existing  or  hereafter acquired,
31    suitable  for  use  by  any  retail  or  wholesale   concern,
32    distributorship, or agency.
33        "Project"  means  an  industrial,  housing,  residential,
34    commercial,  or  service project, or any combination thereof,
 
SB1754 Enrolled             -4-      LRB093 10661 MKM 11490 b
 1    provided that all uses fall  within  one  of  the  categories
 2    described  above. Any project automatically includes all site
 3    improvements  and  new  construction   involving   sidewalks,
 4    sewers,  solid  waste  and  wastewater treatment and disposal
 5    sites and other pollution  control  facilities,  resource  or
 6    waste reduction, recovery, treatment and disposal facilities,
 7    parks,  open spaces, wildlife sanctuaries, streets, highways,
 8    and runways.
 9        "Lease agreement" means an agreement in which  a  project
10    acquired  by  the  Authority  by  purchase, gift, or lease is
11    leased to any person or corporation that will use,  or  cause
12    the  project  to  be used, as a project, upon terms providing
13    for lease rental payments at least sufficient  to  pay,  when
14    due,  all  principal  of and interest and premium, if any, on
15    any bonds, notes, or other evidences of indebtedness  of  the
16    Authority,  issued with respect to the project, providing for
17    the maintenance, insurance, and operation of the  project  on
18    terms   satisfactory  to  the  Authority  and  providing  for
19    disposition of the project  upon  termination  of  the  lease
20    term,  including  purchase  options  or  abandonment  of  the
21    premises,  with other terms as may be deemed desirable by the
22    Authority.
23        "Loan  agreement"  means  any  agreement  in  which   the
24    Authority agrees to loan the proceeds of its bonds, notes, or
25    other  evidences  of  indebtedness,  issued with respect to a
26    project, to any person or corporation which will use or cause
27    the project to be used as a project, upon terms providing for
28    loan repayment installments at least sufficient to pay,  when
29    due,  all  principal  of and interest and premium, if any, on
30    any bonds, notes, or other evidences of indebtedness  of  the
31    Authority  issued  with respect to the project, providing for
32    maintenance, insurance, and operation of the project on terms
33    satisfactory to the Authority and providing for  other  terms
34    deemed advisable by the Authority.
 
SB1754 Enrolled             -5-      LRB093 10661 MKM 11490 b
 1        "Financial  aid" means the expenditure of Authority funds
 2    or funds provided  by  the  Authority  for  the  development,
 3    construction,   acquisition  or  improvement  of  a  project,
 4    through the  issuance  of  revenue  bonds,  notes,  or  other
 5    evidences of indebtedness.
 6        "Costs  incurred  in  connection  with  the  development,
 7    construction,  acquisition or improvement of a project" means
 8    the following:
 9        (1)  the cost of purchase and construction of  all  lands
10    and  improvements  in  connection therewith and equipment and
11    other property, rights, easements,  and  franchises  acquired
12    which are deemed necessary for the construction;
13        (2)  financing charges;
14        (3)  interest  costs  with  respect  to bonds, notes, and
15    other evidences of indebtedness of the Authority prior to and
16    during construction and for a period of 6 months thereafter;
17        (4)  engineering and legal expenses; and
18        (5)  the costs of  plans,  specifications,  surveys,  and
19    estimates  of  costs and other expenses necessary or incident
20    to determining  the  feasibility  or  practicability  of  any
21    project,   together  with  such  other  expenses  as  may  be
22    necessary   or   incident   to   the   financing,   insuring,
23    acquisition, and construction of a specific project  and  the
24    placing of the same in operation.

25        Section 20.  Creation.
26        (a)  There  is  created  a  political  subdivision,  body
27    politic, and municipal corporation named the Western Illinois
28    Economic  Development Authority. The territorial jurisdiction
29    of  the  Authority  is  that  geographic  area   within   the
30    boundaries  of  the  following  counties:  Warren, Henderson,
31    Hancock, McDonough, Fulton,  Mason,  Cass,  Schuyler,  Brown,
32    Adams,  Scott,  Morgan, and Pike and any navigable waters and
33    air space located therein.
 
SB1754 Enrolled             -6-      LRB093 10661 MKM 11490 b
 1        (b)  The  governing  and  administrative  powers  of  the
 2    Authority shall be vested in a body consisting of 23  members
 3    as follows:
 4             (1)  Ex  officio  members.  The Director of Commerce
 5        and Community Affairs, or a designee of that  Department,
 6        and  the  Director  of  Central Management Services, or a
 7        designee of that Department, shall serve  as  ex  officio
 8        members.
 9             (2)  Public   members.   Eight   members   shall  be
10        appointed by the Governor with the advice and consent  of
11        the  Senate.  The  county board chairmen of the following
12        counties  shall  each   appoint   one   member:   Warren,
13        Henderson,   Hancock,  McDonough,  Fulton,  Mason,  Cass,
14        Schuyler, Brown, Adams,  Scott,  Morgan,  and  Pike.  All
15        public   members  shall  reside  within  the  territorial
16        jurisdiction of the Authority. The public  members  shall
17        be persons of recognized ability and experience in one or
18        more   of  the  following  areas:  economic  development,
19        finance, banking, industrial development, state or  local
20        government,   commercial   agriculture,   small  business
21        management,   real    estate    development,    community
22        development,  venture  finance, organized labor, or civic
23        or community organization.
24        (c)  Twelve members shall constitute a quorum.
25        (d)  The chairman  of  the  Authority  shall  be  elected
26    annually  by the Board from among the 13 members appointed by
27    the county board chairmen.
28        (e)  The terms of all initial members  of  the  Authority
29    shall  begin  30  days  after the effective date of this Act.
30    Vacancies occurring among the public members shall be  filled
31    for  the  remainder  of  the  term.  In  case of vacancy in a
32    Governor-appointed membership  when  the  Senate  is  not  in
33    session,  the Governor may make a temporary appointment until
34    the next meeting  of  the  Senate  when  a  person  shall  be
 
SB1754 Enrolled             -7-      LRB093 10661 MKM 11490 b
 1    nominated  to  fill  the office and, upon confirmation by the
 2    Senate, he or she shall hold office during the  remainder  of
 3    the  term  and  until a successor is appointed and qualified.
 4    Members of the Authority are not entitled to compensation for
 5    their services as members but are entitled  to  reimbursement
 6    for  all  necessary  expenses incurred in connection with the
 7    performance of their duties as members.
 8        (f)  The Governor may remove any  public  member  of  the
 9    Authority  in  case  of  incompetence,  neglect  of  duty, or
10    malfeasance in office. The chairman of  a  county  board  may
11    remove  any  public  member appointed by that chairman in the
12    case of incompetence, neglect  of  duty,  or  malfeasance  in
13    office.
14        (g)  The  Board  shall  appoint an Executive Director who
15    shall have a background  in  finance,  including  familiarity
16    with  the legal and procedural requirements of issuing bonds,
17    real estate, or economic development and administration.  The
18    Executive Director shall hold office at the discretion of the
19    Board.   The   Executive   Director   shall   be   the  chief
20    administrative and  operational  officer  of  the  Authority,
21    shall  direct  and  supervise  its administrative affairs and
22    general management, perform  such  other  duties  as  may  be
23    prescribed  from  time  to  time  by the members, and receive
24    compensation  fixed  by  the  Authority.  The  Department  of
25    Commerce and Community Affairs shall pay the compensation  of
26    the  Executive Director from appropriations received for that
27    purpose. The Executive Director shall attend all meetings  of
28    the  Authority.  However, no action of the Authority shall be
29    invalid on account of the absence of the  Executive  Director
30    from  a  meeting.  The  Authority  may engage the services of
31    other agents and employees, including attorneys,  appraisers,
32    engineers,    accountants,   credit   analysts,   and   other
33    consultants, if the Authority deems  it  advisable,  and  may
34    prescribe their duties and fix their compensation.
 
SB1754 Enrolled             -8-      LRB093 10661 MKM 11490 b
 1        (h)  The  Board  may,  by majority vote, nominate up to 4
 2    non-voting  members  for   appointment   by   the   Governor.
 3    Non-voting members shall be persons of recognized ability and
 4    experience  in  one  or more of the following areas: economic
 5    development, finance, banking, industrial development,  small
 6    business   management,  real  estate  development,  community
 7    development, venture  finance,  organized  labor,  or  civic,
 8    community,  or  neighborhood organization. Non-voting members
 9    shall serve at the pleasure  of  the  Board.  All  non-voting
10    members  may  attend  meetings  of  the  Board  and  shall be
11    reimbursed as provided in subsection (e).
12        (i)  The Board shall create a task  force  to  study  and
13    make recommendations to the Board on the economic development
14    of  the  territory  within the jurisdiction of the Authority.
15    The members  of  the  task  force  shall  reside  within  the
16    territorial jurisdiction of the Authority, shall serve at the
17    pleasure  of  the  Board,  and shall be persons of recognized
18    ability and experience in one or more of the following areas:
19    economic   development,    finance,    banking,    industrial
20    development,   small   business   management,   real   estate
21    development,  commercial  agriculture, community development,
22    venture finance,  organized  labor,  or  civic  or  community
23    organization.  The  number  of  members constituting the task
24    force shall be set by the Board and may  vary  from  time  to
25    time.  The  Board  may  set a specific date by which the task
26    force is to submit its final report  and  recommendations  to
27    the Board.

28        Section  25.  Duty.  All  official  acts of the Authority
29    shall require the approval of at least 11 members.  It  shall
30    be  the  duty  of the Authority to promote development within
31    the  geographic  confines  of  Warren,  Henderson,   Hancock,
32    McDonough,  Fulton,  Mason,  Cass,  Schuyler,  Brown,  Adams,
33    Scott, Morgan, and Pike counties. The Authority shall use the
 
SB1754 Enrolled             -9-      LRB093 10661 MKM 11490 b
 1    powers  conferred  upon  it  to  assist  in  the development,
 2    construction,  and  acquisition  of  industrial,  commercial,
 3    housing, or residential projects within those counties.

 4        Section 30.  Powers.
 5        (a)  The Authority possesses all the  powers  of  a  body
 6    corporate necessary and convenient to accomplish the purposes
 7    of  this Act, including, without any intended limitation upon
 8    the general powers hereby conferred, the following powers:
 9             (1)  to enter into loans, contracts, agreements, and
10        mortgages  in  any  matter  connected  with  any  of  its
11        corporate purposes and to invest its funds;
12             (2)  to sue and be sued;
13             (3)  to employ agents  and  employees  necessary  to
14        carry out its purposes;
15             (4)  to  have and use a common seal and to alter the
16        seal at its discretion;
17             (5)  to adopt all needful  ordinances,  resolutions,
18        bylaws,  rules,  and  regulations  for the conduct of its
19        business and affairs and for the management  and  use  of
20        the   projects   developed,  constructed,  acquired,  and
21        improved in furtherance of its purposes;
22             (6)  to designate the fiscal year for the Authority;
23             (7)  to accept and expend appropriations;
24             (8)  to acquire,  own,  lease,  sell,  or  otherwise
25        dispose   of  interests  in  and  to  real  property  and
26        improvements  situated  on  that  real  property  and  in
27        personal property necessary to fulfill  the  purposes  of
28        the Authority;
29             (9)  to engage in any activity or operation which is
30        incidental  to  and in furtherance of efficient operation
31        to accomplish the Authority's primary purpose;
32             (10)  to acquire, own,  construct,  lease,  operate,
33        and maintain bridges, terminals, terminal facilities, and
 
SB1754 Enrolled             -10-     LRB093 10661 MKM 11490 b
 1        port  facilities and to fix and collect just, reasonable,
 2        and  nondiscriminatory  charges  for  the  use  of   such
 3        facilities.  These  charges  shall  be used to defray the
 4        reasonable expenses of  the  Authority  and  to  pay  the
 5        principal and interest of any revenue bonds issued by the
 6        Authority;
 7             (11)  subject to any applicable condition imposed by
 8        this  Act,  to  locate,  establish  and maintain a public
 9        airport, public airports and  public  airport  facilities
10        within its corporate limits or within or upon any body of
11        water adjacent thereto and to construct, develop, expand,
12        extend  and improve any such airport or airport facility;
13        and
14             (12)  to have and exercise all powers and be subject
15        to all duties usually incident to boards of directors  of
16        corporations.
17        (b)  The  Authority shall not issue any bonds relating to
18    the financing of a project located within  the  planning  and
19    subdivision  control  jurisdiction  of  any  municipality  or
20    county  unless:  (i)  notice,  including a description of the
21    proposed project and  the  financing  for  that  project,  is
22    submitted  to  the  corporate authorities of the municipality
23    or, in the case of a proposed project  in  an  unincorporated
24    area,  to the county board and (ii) the corporate authorities
25    of the municipality do not, or the  county  board  does  not,
26    adopt  a  resolution  disapproving the project within 45 days
27    after receipt of the notice.
28        (c)  If any of the powers  set  forth  in  this  Act  are
29    exercised   within   the   jurisdictional   limits   of   any
30    municipality,  all  ordinances  of the municipality remain in
31    full force and effect and are controlling.

32        Section 35.  Tax  avoidance.  Notwithstanding  any  other
33    provision  of  law,  the  Authority  shall not enter into any
 
SB1754 Enrolled             -11-     LRB093 10661 MKM 11490 b
 1    agreement providing for the purchase and  lease  of  tangible
 2    personal  property which results in the avoidance of taxation
 3    under the Retailers' Occupation Tax Act, the Use Tax Act, the
 4    Service Use Tax Act,  or  the  Service  Occupation  Tax  Act,
 5    without the prior written consent of the Governor.

 6        Section 40.  Bonds.
 7        (a)  The  Authority,  with  the  written  approval of the
 8    Governor, shall have the continuing  power  to  issue  bonds,
 9    notes,  or  other  evidences  of indebtedness in an aggregate
10    amount not to exceed $250,000,000 for the following purposes:
11    (i) development, construction, acquisition, or improvement of
12    projects, including those established  by  business  entities
13    locating   or   expanding  property  within  the  territorial
14    jurisdiction of the Authority;  (ii)  entering  into  venture
15    capital  agreements  with  businesses  locating  or expanding
16    within the territorial jurisdiction of the  Authority;  (iii)
17    acquisition  and  improvement  of  any property necessary and
18    useful in connection therewith; and (iv) for the purposes  of
19    the  Employee  Ownership  Assistance  Act. For the purpose of
20    evidencing the obligations of  the  Authority  to  repay  any
21    money  borrowed,  the  Authority may, pursuant to resolution,
22    from time to time, issue and dispose of its  interest-bearing
23    revenue  bonds, notes, or other evidences of indebtedness and
24    may also from time to time issue and dispose of  such  bonds,
25    notes,  or  other  evidences  of  indebtedness  to refund, at
26    maturity, at a redemption date or in advance of  either,  any
27    bonds,  notes, or other evidences of indebtedness pursuant to
28    redemption provisions or at any  time  before  maturity.  All
29    such  bonds,  notes, or other evidences of indebtedness shall
30    be payable solely and only from the revenues or income to  be
31    derived  from  loans  made with respect to projects, from the
32    leasing or sale of the projects,  or  from  any  other  funds
33    available  to  the  Authority  for  such purposes. The bonds,
 
SB1754 Enrolled             -12-     LRB093 10661 MKM 11490 b
 1    notes, or other evidences of indebtedness may bear such  date
 2    or  dates,  may mature at such time or times not exceeding 40
 3    years from their respective dates, may bear interest at  such
 4    rate or rates not exceeding the maximum rate permitted by the
 5    Bond  Authorization  Act, may be in such form, may carry such
 6    registration privileges, may be executed in such manner,  may
 7    be  payable  at  such place or places, may be made subject to
 8    redemption in such  manner  and  upon  such  terms,  with  or
 9    without  premium,  as  is  stated on the face thereof, may be
10    authenticated in such manner and may contain such  terms  and
11    covenants as may be provided by an applicable resolution.
12        (b)  The  holder or holders of any bonds, notes, or other
13    evidences of indebtedness issued by the Authority  may  bring
14    suits   at  law  or  proceedings  in  equity  to  compel  the
15    performance and observance by any corporation or person or by
16    the Authority or any  of  its  agents  or  employees  of  any
17    contract  or  covenant  made  with  the holders of the bonds,
18    notes, or other evidences of  indebtedness,  to  compel  such
19    corporation,  person, the Authority, and any of its agents or
20    employees to perform any duties required to be performed  for
21    the  benefit  of  the  holders  of the bonds, notes, or other
22    evidences of indebtedness by the provision of the  resolution
23    authorizing  their  issuance  and  to enjoin the corporation,
24    person, the Authority, and any of  its  agents  or  employees
25    from  taking  any  action  in  conflict  with any contract or
26    covenant.
27        (c)  If the Authority fails to pay the  principal  of  or
28    interest  on any of the bonds or premium, if any, as the bond
29    becomes  due,  a  civil  action  to  compel  payment  may  be
30    instituted in the appropriate circuit court by the holder  or
31    holders  of  the bonds on which the default of payment exists
32    or by an indenture trustee acting on behalf of  the  holders.
33    Delivery  of  a  summons  and  a copy of the complaint to the
34    chairman of the Board shall constitute sufficient service  to
 
SB1754 Enrolled             -13-     LRB093 10661 MKM 11490 b
 1    give  the  circuit court jurisdiction over the subject matter
 2    of the suit and  jurisdiction  over  the  Authority  and  its
 3    officers  named  as  defendants for the purpose of compelling
 4    such payment. Any  case,  controversy,  or  cause  of  action
 5    concerning the validity of this Act relates to the revenue of
 6    the State of Illinois.
 7        (d)  Notwithstanding  the  form  and  tenor  of any bond,
 8    note, or other evidence of indebtedness and in the absence of
 9    any express recital on its face that  it  is  non-negotiable,
10    all  such  bonds,  notes, and other evidences of indebtedness
11    shall be negotiable instruments. Pending the preparation  and
12    execution   of  any  bonds,  notes,  or  other  evidences  of
13    indebtedness,  temporary  bonds,  notes,  or   evidences   of
14    indebtedness may be issued as provided by ordinance.
15        (e)  To  secure  the payment of any or all of such bonds,
16    notes, or other evidences of indebtedness, the revenues to be
17    received by the Authority from  a  lease  agreement  or  loan
18    agreement  shall  be pledged, and, for the purpose of setting
19    forth the covenants and  undertakings  of  the  Authority  in
20    connection  with  the  issuance of the bonds, notes, or other
21    evidences of indebtedness and the issuance of any  additional
22    bonds,  notes or other evidences of indebtedness payable from
23    such revenues, income, or other  funds  to  be  derived  from
24    projects, the Authority may execute and deliver a mortgage or
25    trust  agreement.  A  remedy for any breach or default of the
26    terms of any mortgage or trust agreement by the Authority may
27    be by mandamus proceeding in the appropriate circuit court to
28    compel performance and compliance  under  the  terms  of  the
29    mortgage  or  trust  agreement,  but  the trust agreement may
30    prescribe by whom or  on  whose  behalf  the  action  may  be
31    instituted.
32        (f)  Bonds  or  notes shall be secured as provided in the
33    authorizing ordinance which may include, notwithstanding  any
34    other  provision  of  this  Act,  in  addition  to  any other
 
SB1754 Enrolled             -14-     LRB093 10661 MKM 11490 b
 1    security, a specific pledge, assignment of and  lien  on,  or
 2    security  interest  in  any  or  all revenues or money of the
 3    Authority, from whatever source, which may, by law,  be  used
 4    for   debt   service  purposes  and  a  specific  pledge,  or
 5    assignment of and lien on, or security interest in any  funds
 6    or  accounts  established or provided for by ordinance of the
 7    Authority authorizing the issuance of the bonds or notes.
 8        (g)  In the event  that  the  Authority  determines  that
 9    moneys  of  the  Authority  will  not  be  sufficient for the
10    payment of the principal of and interest on its bonds  during
11    the  next  State  fiscal  year,  the  chairman,  as  soon  as
12    practicable,   shall  certify  to  the  Governor  the  amount
13    required by the Authority to enable it to pay  the  principal
14    of  and  interest on the bonds. The Governor shall submit the
15    certified  amount  to  the  General  Assembly  as   soon   as
16    practicable,  but  no later than the end of the current State
17    fiscal year. This Section shall not apply  to  any  bonds  or
18    notes  to  which  the Authority determines, in the resolution
19    authorizing the issuance of the bonds  or  notes,  that  this
20    Section  shall  not  apply. Whenever the Authority makes this
21    determination, it shall be plainly stated on the face of  the
22    bonds  or  notes and the determination shall also be reported
23    to the Governor.  In the event of a withdrawal of moneys from
24    a reserve fund established  with  respect  to  any  issue  or
25    issues of bonds of the Authority to pay principal or interest
26    on  those  bonds,  the  chairman of the Authority, as soon as
27    practicable,  shall  certify  to  the  Governor  the   amount
28    required to restore the reserve fund to the level required in
29    the   resolution  or  indenture  securing  those  bonds.  The
30    Governor shall submit the certified  amount  to  the  General
31    Assembly as soon as practicable, but no later than the end of
32    the current State fiscal year.
33        (h)  The State of Illinois pledges to and agrees with the
34    holders  of  the  bonds  and  notes  of  the Authority issued
 
SB1754 Enrolled             -15-     LRB093 10661 MKM 11490 b
 1    pursuant to this Section that the State  will  not  limit  or
 2    alter  the  rights and powers vested in the Authority by this
 3    Act so as to impair the terms of any  contract  made  by  the
 4    Authority  with  the  holders of bonds or notes or in any way
 5    impair the rights and remedies of  those  holders  until  the
 6    bonds   and  notes,  together  with  interest  thereon,  with
 7    interest on any unpaid  installments  of  interest,  and  all
 8    costs   and   expenses  in  connection  with  any  action  or
 9    proceedings by or on behalf of the holders, are fully met and
10    discharged. In addition, the State pledges to and agrees with
11    the holders of the bonds and notes of  the  Authority  issued
12    pursuant  to  this  Section  that the State will not limit or
13    alter the basis on which State funds are to be  paid  to  the
14    Authority  as provided in this Act, or the use of such funds,
15    so as to impair the terms of any such contract. The Authority
16    is authorized to include these pledges and agreements of  the
17    State  in  any  contract  with  the holders of bonds or notes
18    issued pursuant to this Section.
19        (i)  Not less than 30 days prior  to  the  commitment  to
20    issue  bonds,  notes,  or other evidences of indebtedness for
21    the  purpose  of  developing,  constructing,  acquiring,   or
22    improving housing or residential projects, as defined in this
23    Act,  the  Authority  shall  provide  notice to the Executive
24    Director  of  the  Illinois  Housing  Development  Authority.
25    Within 30 days after the notice  is  provided,  the  Illinois
26    Housing  Development  Authority  shall,  in  writing,  either
27    express  interest  in  financing  the  project  or notify the
28    Authority that it is not interested  in  providing  financing
29    and  that  the  Authority  may  finance  the  project or seek
30    alternative financing.

31        Section 45.  Bonds and notes;  exemption  from  taxation.
32    The  creation  of  the  Authority  is in all respects for the
33    benefit of the people of Illinois and for the improvement  of
 
SB1754 Enrolled             -16-     LRB093 10661 MKM 11490 b
 1    their health, safety, welfare, comfort, and security, and its
 2    purposes  are  public purposes. In consideration thereof, the
 3    notes and bonds of the Authority issued pursuant to this  Act
 4    and  the  income  from these notes and bonds may be free from
 5    all taxation by the  State  or  its  political  subdivisions,
 6    exempt  for  estate,  transfer,  and  inheritance  taxes. The
 7    exemption from taxation provided by  the  preceding  sentence
 8    shall  apply  to  the  income  on  any  notes or bonds of the
 9    Authority  only  if  the  Authority  in  its  sole   judgment
10    determines  that  the exemption enhances the marketability of
11    the bonds or notes or reduces the interest rates  that  would
12    otherwise  be  borne  by  the bonds or notes. For purposes of
13    Section 250 of the Illinois Income Tax Act, the exemption  of
14    the  Authority  shall  terminate  after all of the bonds have
15    been paid. The amount of such income that shall be added  and
16    then  subtracted  on  the  Illinois  income  tax  return of a
17    taxpayer, subject to Section 203 of the Illinois  Income  Tax
18    Act,  from  federal  adjusted gross income or federal taxable
19    income  in  computing  Illinois  base  income  shall  be  the
20    interest net of any bond premium amortization.

21        Section 50.  Acquisition.
22        (a)  The Authority may, but need not,  acquire  title  to
23    any project with respect to which it exercises its authority.
24        (b)  The   Authority  shall  have  power  to  acquire  by
25    purchase, lease, gift, or otherwise any  property  or  rights
26    therein  from  any  person or persons, the State of Illinois,
27    any municipal corporation, any local unit of government,  the
28    government   of   the   United   States  and  any  agency  or
29    instrumentality of the United States, any  body  politic,  or
30    any  county useful for its purposes, whether improved for the
31    purposes  of  any  prospective  project  or  unimproved.  The
32    Authority may also accept  any  donation  of  funds  for  its
33    purposes from any of these sources.
 
SB1754 Enrolled             -17-     LRB093 10661 MKM 11490 b
 1        (c)  The   Authority   shall   have   power  to  develop,
 2    construct, and improve, either under  its  own  direction  or
 3    through  collaboration  with  any  approved  applicant, or to
 4    acquire, through purchase or otherwise,  any  project,  using
 5    for  this  purpose  the  proceeds  derived  from  its sale of
 6    revenue bonds, notes, or other evidences of  indebtedness  or
 7    governmental loans or grants and shall have the power to hold
 8    title to those projects in the name of the Authority.
 9        (d)  The  Authority  shall  have  the power to enter into
10    intergovernmental agreements with the State of Illinois,  the
11    counties  of  Warren,  Henderson, Hancock, McDonough, Fulton,
12    Mason, Cass, Schuyler, Brown, Adams, Scott, Morgan, or  Pike,
13    the  Illinois  Development  Finance  Authority,  the Illinois
14    Housing  Development  Authority,   the   Illinois   Education
15    Facilities   Authority,   the   Illinois   Farm   Development
16    Authority,  the Rural Bond Bank, the United States government
17    and any agency or instrumentality of the United  States,  any
18    unit  of local government located within the territory of the
19    Authority, or any other unit  of  government  to  the  extent
20    allowed   by   Article   VII,  Section  10  of  the  Illinois
21    Constitution and the Intergovernmental Cooperation Act.
22        (e)  The  Authority  shall  have  the  power   to   share
23    employees  with other units of government, including agencies
24    of the United States, agencies of the State of Illinois,  and
25    agencies or personnel of any unit of local government.
26        (f)  The  Authority  shall  have  the  power  to exercise
27    powers and issue bonds  as  if  it  were  a  municipality  so
28    authorized  in  Divisions  12.1,  74, 74.1, 74.3, and 74.5 of
29    Article 11 of the Illinois Municipal Code.

30        Section  55.  Enterprise  zones.  The  Authority  may  by
31    ordinance designate a portion of the territorial jurisdiction
32    of the Authority for  certification  as  an  Enterprise  Zone
33    under  the  Illinois  Enterprise  Zone Act in addition to any
 
SB1754 Enrolled             -18-     LRB093 10661 MKM 11490 b
 1    other enterprise zones which may be created under  that  Act,
 2    which  area  shall  have  all the privileges and rights of an
 3    Enterprise Zone pursuant to the Illinois Enterprise Zone Act,
 4    but which shall not be counted in determining the  number  of
 5    Enterprise  Zones  to be created in any year pursuant to that
 6    Act.

 7        Section 60.  Designation  of  depository.  The  Authority
 8    shall  biennially designate a national or State bank or banks
 9    as depositories of its  money.  Such  depositories  shall  be
10    designated  only  within  the  State  and upon condition that
11    bonds approved as to form and surety by the Authority and  at
12    least  equal  in  amount to the maximum sum expected to be on
13    deposit at  any  one  time  shall  be  first  given  by  such
14    depositories  to  the Authority, such bonds to be conditioned
15    for the safe keeping and prompt repayment of  such  deposits.
16    When  any of the funds of the Authority shall be deposited by
17    the treasurer in any such depository, the treasurer  and  the
18    sureties  on  his  official  bond  shall,  to such extent, be
19    exempt from liability for the  loss  of  any  such  deposited
20    funds  by reason of the failure, bankruptcy, or any other act
21    or default of such depository; provided  that  the  Authority
22    may accept assignments of collateral by any depository of its
23    funds  to  secure  such  deposits  to  the  same  extent  and
24    conditioned  in  the same manner as assignments of collateral
25    are permitted by law to secure deposits of the funds  of  any
26    city.

27        Section  65.  Taxation  prohibited.  The  Authority shall
28    have no right  or  authority  to  levy  any  tax  or  special
29    assessment,  to  pledge  the credit of the State or any other
30    subdivision or municipal corporation thereof, or to incur any
31    obligation enforceable upon any property,  either  within  or
32    without the territory of the Authority.
 
SB1754 Enrolled             -19-     LRB093 10661 MKM 11490 b
 1        Section  70.  Fees.  The  Authority  may collect fees and
 2    charges  in  connection  with  its  loans,  commitments,  and
 3    servicing  and  may  provide  technical  assistance  in   the
 4    development of the region.

 5        Section 75.  Reports. The Authority shall annually submit
 6    a  report  of  its  finances  to  the  Auditor  General.  The
 7    Authority shall annually submit a report of its activities to
 8    the Governor and to the General Assembly.

 9        Section  999.  Effective date. This Act takes effect upon
10    becoming law.