SB3776enr 96TH GENERAL ASSEMBLY

SB3776 Enrolled LRB096 20865 AMC 36639 b

AN ACT concerning finance.

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

Section 1. Short title. This Act may be cited as the Private Activity Bond Approval Act.

Section 5. Public policy. It is the policy of this State that in order to maintain an effective system of monitoring the use of federal subsidies within the State, facilities within the State proposed to be financed with bonds issued by an issuer that does not have jurisdiction over the location of those facilities must receive prior approval from the Governor in accordance with this Act.

Section 10. Definition. "Host approval" means an approval by an applicable elected representative of a governmental unit, for purposes of Section 147(f)(2)(A)(ii) of the Internal Revenue Code, having jurisdiction over the area in which a facility is located that is to be financed with bonds issued by an issuer that does not have jurisdiction over the location of the facility.

Section 15. Qualifications for facility requiring host approval.

(a) Host approval shall not be granted unless and until the Governor has received the items and information listed in subsection (b) of this Section and has issued an approval as set forth in subsection (c) of this Section.

(b) The following items and information must be received by the Governor:

(1) a copy of the notice of public hearing pertaining to the facilities;

(2) minutes or another official record of the public hearing;

(3) the maximum stated principal amount of the bonds;

(4) a description of the facility, including its location;

(5) a description of the plan of finance;

(6) the name of the issuer of the bonds; and

(7) the name of the initial owner or principal user of the facility.

(c) If, and only if, the Governor determines that the facility and the items and information submitted under subsection (b) of this Section are consistent with the laws and public policy of the State and are in the best interest of the State, then the Governor shall issue a written approval under this Section authorizing the governmental unit to grant its host approval in its discretion.

Section 99. Effective date. This Act takes effect January 1, 2011.