093_HB0185ham002











                                     LRB093 04132 MKM 12688 a

 1                     AMENDMENT TO HOUSE BILL 185

 2        AMENDMENT NO.     .  Amend House Bill  185  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5.  The Rural Bond Bank Act is amended by adding
 5    Section 3-26 as follows:

 6        (30 ILCS 360/3-26 new)
 7        Sec.  3-26.    Road  grader  revolving  loan program. The
 8    Illinois Rural Bond Bank  is  the  administrator  of  a  road
 9    grader  revolving  loan  program.  The  purpose is to provide
10    loans to units of local government for the purchase  of  road
11    graders  that  are  manufactured  in  the  United  States  of
12    America.  For  purposes  of  this  Section,  "unit  of  local
13    government"  means  a  county, township, or municipality; and
14    "manufactured in the United States of America" means that all
15    significant parts, processing, and labor  that  go  into  the
16    road  grader  must be of U.S. origin and that the road grader
17    must contain only negligible foreign content.  "Road  grader"
18    includes  any  machinery with a purchase price of $100,000 or
19    more that is used for  the  construction  or  maintenance  of
20    roads.   The   Illinois   Rural  Bond  Bank  shall  determine
21    eligibility for the loans based on need, as determined by the
22    Illinois Rural Bond Bank.  The Illinois Rural Bond Bank  must
 
                            -2-      LRB093 04132 MKM 12688 a
 1    give  priority  in  making loans to units of local government
 2    without a road grader or with the oldest road grader.
 3        The loan funds, subject to appropriation, shall  be  paid
 4    out of the Road Grader Revolving Loan Fund, a special fund in
 5    the  State  treasury.  The  Fund  shall consist of any moneys
 6    transferred into or appropriated to the Fund as well  as  all
 7    repayments  of  loans made under this Section. The Fund shall
 8    be used for loans to units of local  government  to  purchase
 9    road graders and for no other purpose. All interest earned on
10    moneys in the Fund shall be deposited into the Fund.
11        The annual rate of interest on the loan is 1%.
12        The  aggregate  outstanding principal balance of loans to
13    any one unit of local government for  the  purchase  of  road
14    graders may not exceed $350,000. The repayment period for the
15    loan  may  not  exceed 15 years. The unit of local government
16    shall repay each year at least 5%  of  the  principal  amount
17    borrowed  or  the remaining balance of the loan, whichever is
18    less. All repayments of loans, including any interest,  shall
19    be deposited into the Road Grader Revolving Loan Fund.
20        The   Illinois  Rural  Bond  Bank  must  adopt  rules  to
21    administer the program.

22        Section 10.  The State Finance Act is amended  by  adding
23    Section 5.595 as follows:

24        (30 ILCS 105/5.595 new)
25        Sec. 5.595.  The Road Grader Revolving Loan Fund.".