State of Illinois
91st General Assembly
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[ House Amendment 002 ]

91_HB2314

 
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 1        AN ACT in  relation  to  economic  development,  amending
 2    named Acts.

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

 5        Section 1.  This Act may be cited as the East  St.  Louis
 6    Area Development Act of 1999.

 7        Section  2.   The  General  Assembly finds that there has
 8    been a dramatic decrease in the population of depressed areas
 9    in East St. Louis and that blight,  deterioration  and  decay
10    have  resulted  in  (a)  inefficient and wasteful use of land
11    resources;  (b)   destruction   of   irreplaceable   natural,
12    industrial,  recreational,  housing and commercial resources;
13    (c) diminished opportunity  for  the  private  home  building
14    industry  to  operate  at  its  highest potential capacity in
15    providing good housing needed  for  those  who  now  live  in
16    depressed areas and those expected to move to depressed areas
17    in  the  future,  and to replace substandard housing; (d) the
18    need for costly and effective public facilities and  services
19    at  all levels; (e) unduly limited options for many depressed
20    areas residents as to where they may live, and the  types  of
21    housing and environment in which they may live; (f) a failure
22    to  make  the  most  economical use of the land available for
23    development in depressed areas; (g) decreasing employment and
24    business opportunities for the citizens of  depressed  areas,
25    and  the  inability  of  depressed areas to retain a tax base
26    adequate to support vital  services  for  all  our  citizens,
27    particularly   our   poor  and  disadvantaged;  and  (h)  the
28    decreased effectiveness of public and private facilities  for
29    urban transportation.

30        Section  2.01.   The  General  Assembly finds that better
 
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 1    patterns of development and revitalization in  the  East  St.
 2    Louis  depressed  areas  are  essential to accommodate future
 3    population growth; to prevent further  deterioration  of  the
 4    city and the people's physical and social environment; and to
 5    make a positive contribution to improving the overall quality
 6    of  life  in  the East St. Louis depressed areas of Illinois.
 7    The General Assembly finds that the health,  welfare,  morals
 8    and  safety of its citizens require the encouragement of well
 9    planned,  diversified  and   economically   sound   community
10    development,  including  major additions to existing areas of
11    depression.   The  General  Assembly  finds  that   desirable
12    community development on a significantly large scale has been
13    prevented by difficulties in (a) obtaining adequate financing
14    at  moderate cost for enterprises which involve large initial
15    capital investment, extensive periods before  investment  can
16    be  returned,  and regular patterns of return; (b) the timely
17    assembly  of  sufficiently  large   sites   in   economically
18    favorable  locations  at  reasonable  costs;  and  (c) making
19    necessary  arrangements  among   all   private   and   public
20    organizations   involved,  for  providing  site  and  related
21    improvements (including streets, sewer and water  facilities,
22    and  other  public  and community facilities) in a timely and
23    coordinated manner.

24        Section 3.  The following  terms  specified  in  Sections
25    3.01  through 3.08, whenever used or referred to in this Act,
26    shall have the meanings ascribed to them in  those  Sections,
27    except in those instances where the context clearly indicates
28    otherwise.

29        Section  3.01.  "Authority" means the East St. Louis Area
30    Development Authority created by this Act.

31        Section 3.02.  "Project" means  any  utility,  structure,
 
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 1    facility or other undertaking which will implement a defined,
 2    organized,  planned  and scheduled, diversified, economically
 3    and technologically  sound,  quality  community  environment,
 4    which  the authority is authorized to construct, reconstruct,
 5    improve, equip or furnish under  this  Act.   "Project"  will
 6    include,  but  is  not  limited  to:    buildings  and  other
 7    facilities  intended  for  use  as  classrooms, laboratories,
 8    student residence  halls,  instructional  and  administrative
 9    facilities for students, faculty, officers and employees, and
10    motor  vehicle  parking  facilities  and fixed equipment, and
11    industrial  or  manufacturing  plants  or   facilities,   any
12    industrial  park, any commercial facilities, the construction
13    or improvement of streets, sidewalks,  and  sewer  and  water
14    facilities,  the construction of schools, parks, playgrounds,
15    community and municipal buildings and the  implementation  of
16    new  community  development programs. "Project" further means
17    apartments, housing facilities, health, hospital and  medical
18    facilities,   stadiums,   physical  education  installations,
19    hotels, motels, dormitories, New  Town  Programs,  aquariums,
20    museums,  convention  centers, planetariums, civic buildings,
21    nursing homes, harbors, and terminal facilities.  Nothing  in
22    this Act shall be construed to authorize the financing for or
23    the  construction  of  plants, projects or facilities for (1)
24    the  manufacture  or  generation  of   electric   energy   in
25    competition  with  an  electric  supplier  as  defined in the
26    Electric Supplier Act or (2) the  transmission,  distribution
27    or manufacture of gas in competition with a public utility as
28    defined  in  "An  Act concerning public utilities",  approved
29    June 29, 1921, as amended.

30        Section 3.03.  "Land development" means  the  process  of
31    clearing   and   grading   land,   making,   installing,   or
32    constructing  water  lines  and  water  supply installations,
33    sewer lines and sewage disposal  installations,  steam,  gas,
 
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 1    and  electrical  plants  and  installations,  roads, streets,
 2    curbs, gutters, sidewalks,  storm  drainage  facilities,  and
 3    other  installations  or  work,  whether  on or off the site,
 4    which the Authority deems necessary or desirable  to  prepare
 5    land  for residential, commercial, industrial, or other uses,
 6    or in providing facilities for public or other facilities.
 7        "Land development" further means to construct, acquire by
 8    gift or purchase, reconstruct, improve, better or extend  any
 9    project  within  or  without  the  municipality  or partially
10    within the municipality, but in no event farther than 3 miles
11    from the territorial boundaries of such municipality, and  to
12    acquire  by  gift  or  purchase  lands  or  rights in land in
13    connection therewith.

14        Section 3.04.  "Blighted area"  means  any  area  of  not
15    less,  in  the  aggregate,  than  2  acres located within the
16    territorial limits of the  East  St.  Louis  depressed  areas
17    where  industrial,  commercial, recreational, residential, or
18    any  other  buildings  or  improvements,  because   of   age,
19    dilapidation,    obsolescence,    overcrowding,    lack    of
20    ventilation,  light, sanitary facilities, adequate utilities,
21    or excessive land coverage, deleterious land use or layout or
22    any combination of these  factors,  are  detrimental  to  the
23    public safety, health, morals or welfare.

24        Section    3.05.     "Redevelopment   plan"   means   the
25    comprehensive process for the clearing or rehabilitation  and
26    physical development of a commercial, residential, industrial
27    or   recreational   blighted  area,  and  necessary  for  the
28    elimination or rehabilitation of a  residential,  commercial,
29    or  industrially blighted area and the protection of adjacent
30    areas, and all administrative, funding and financial  details
31    and proposals necessary to effectuate the plan, including but
32    not limited to a new community development program.
 
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 1        Section  3.06.   "Redevelopment  area" means the blighted
 2    area of not less  in  the  aggregate  than  2  acres,  to  be
 3    developed in accordance with the redevelopment plan.

 4        Section 3.07.  "East St. Louis Depressed Areas" means the
 5    territorial   areas  of  East  St.  Louis,  Alorton,  Venice,
 6    Centreville and Brooklyn, Illinois.

 7        Section 3.08.  "Depressed Areas" means the areas of  East
 8    St.   Louis,   Alorton,  Venice,  Centreville  and  Brooklyn,
 9    Illinois.

10        Section 4.  There is  created  an  East  St.  Louis  Area
11    Development  Authority  within  the  State  of Illinois.  The
12    Authority shall: (a) act as Public Developer in carrying  out
13    community development programs in and for the East St.  Louis
14    depressed areas of the  State of Illinois; (b) make available
15    adequate     management,    administrative   and   technical,
16    financial, and other assistance necessary for encouraging the
17    defined,  organized,  planned  and  scheduled,   diversified,
18    economically  and  technologically  sound,  quality community
19    environment in  depressed areas, and to do so through the use
20    of management task force procedures which will  rely  to  the
21    maximum  extent  on  private  enterprise;  (c) strengthen the
22    capacity of the State and  Federal governments to make  their
23    resources available to the people of East St. Louis depressed
24    areas; (d) increase for all persons living in depressed areas
25    the  available  choices  of locations for living and working,
26    thereby  providing  a   more   just   economic   and   social
27    environment;  (e)  encourage  the  fullest utilization of the
28    economic potential of supply of residential,  commercial  and
29    industrial  building  sites  at reasonable costs; (f) utilize
30    improved  technology  in  producing  the  large   volume   of
31    well-designed  housing  needed  to  accommodate the people of
 
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 1    depressed areas; (g) help create neighborhoods  designed  for
 2    easier  access  between  the places where people live and the
 3    place where they work  and  find  recreation;  (h)  encourage
 4    desirable  innovations  in  meeting domestic problems whether
 5    physical,  economical  or  social;  and  (i)  assist,   plan,
 6    develop,  build  and  construct  any  facility  or project to
 7    enhance   the   community   environment   and   technological
 8    management when requested to do so by any  State,  county  or
 9    federal   agency,   school   district,   community   college,
10    municipality,   municipal   corporation,   special  district,
11    authority, local or State  public  body,  commission,  public
12    corporation  or  entity  within  the East St. Louis depressed
13    area.

14        Section 5. The Authority  shall  consist  of  9  members,
15    including  as  members  the  Director  of  the  Department of
16    Commerce and Community Affairs or his designee, the  Director
17    of   the   Illinois  Housing  Development  Authority  or  his
18    designee, the Executive Director of the Illinois  Development
19    Finance  Authority  or  his  designee, the mayors of East St.
20    Louis, Centreville, Venice, Brooklyn  and  Alorton  or  their
21    respective designees. The other member of the Authority shall
22    be  appointed  by  the  Governor,  by and with the advice and
23    consent of the Senate.  One member of the authority shall  be
24    designated as chairman by the members of the Authority.
25        If  the  Senate is not in session when the appointment is
26    made, the Governor shall make a temporary appointment  as  in
27    the  case  of a vacancy. The member appointed by the Governor
28    shall serve for a 4-year term expiring on the third Monday in
29    January or until his successor is  appointed  and  qualified.
30    Any  vacancy  occurring  in  the  office  held  by the member
31    appointed by the Governor, whether by death,  resignation  or
32    otherwise, shall be filled by the Governor in the same manner
33    as  the  original  appointment.  A member appointed to fill a
 
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 1    vacancy shall serve for the remainder of the  unexpired  term
 2    or until his successor is appointed and qualified.

 3        Section  6.  Members of the Authority shall serve without
 4    compensation but shall be  reimbursed  for  their  reasonable
 5    expenses  necessarily  incurred  in  the performance of their
 6    duties and the exercise of their powers under this Act.  Each
 7    member  shall  before entering upon the duties of his office,
 8    take and subscribe to the constitutional oath of office.  The
 9    oath shall be filed in the office of the Secretary of State.

10        Section 7.  The Authority shall meet at  such  times  and
11    places as is provided for by the Authority or, in the absence
12    of such a provision, on call of the chairman after at least 5
13    days'  written  notice  to the members or the request of 2 or
14    more members. Five members  shall  constitute  a  quorum.  No
15    vacancy  in the membership shall impair the right of a quorum
16    of the members to exercise all of the rights and powers,  and
17    to perform all of the duties, of the Authority.

18        Section   8.   The  Authority  may  employ  and  fix  the
19    compensation of an executive director, to serve as the  chief
20    executive  officer of the Authority, and such other agents or
21    employees  as  it  considers  necessary  or  desirable.  Such
22    employment other than of technical or  engineering  personnel
23    shall  be subject to the Personnel Code. If any employees are
24    transferred to the Authority from  any  other  State  agency,
25    such a transfer shall not affect the status of such employees
26    under  the  Personnel Code, under any retirement system under
27    the Illinois Pension Code, or under any civil service,  merit
28    service or other law relating to State employment.

29        Section  9.   The  Authority  has  the  following rights,
30    powers and duties specified in Sections 9.01 through 9.24.
 
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 1        Section 9.01.   To  sue  and  be  sued,  implead  and  be
 2    impleaded, complain and defend in all courts.

 3        Section 9.02.  To make regulations for the management and
 4    regulation of its affairs.

 5        Section  9.03.   To acquire by purchase or gift, and hold
 6    or dispose  of  real  or  personal  property,  or  rights  or
 7    interests therein.

 8        Section  9.04.   To  accept  loans  or grants of money or
 9    materials or property of any kind from  a  Federal  or  State
10    agency   or   department  or  others,  upon  such  terms  and
11    conditions as may be imposed.

12        Section 9.05.  To borrow money to implement any  project,
13    or any combination of projects.

14        Section 9.06.  To recommend the issuance of revenue bonds
15    to implement any project or combination of projects.

16        Section  9.07.  To make contracts and leases and exercise
17    all instruments and  perform  all  acts  and  do  all  things
18    necessary  or  convenient  to carry out the powers granted in
19    this Act.

20        Section  9.08.   To  develop   and   recommend   to   the
21    municipalities  in  the East St. Louis depressed areas a long
22    range comprehensive master redevelopment plan  for  community
23    growth and development of depressed areas including assisting
24    in the preparation of new town applications to the Department
25    of Housing and Urban Development.

26        Section  9.09.   To  collect,  analyze  and evaluate such
 
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 1    statistics,   data   and   other    information    (including
 2    demographic, economic, social, environmental and governmental
 3    information)  as will enable the Authority to transmit to the
 4    corporate authorities within the  East  St.  Louis  depressed
 5    areas,  at  the  beginning of each year, a required report on
 6    the growth of depressed  areas  for  the  year  passed.  Such
 7    report shall include, but not be limited to:
 8        (a)  Information      and      statistics      describing
 9    characteristics  of  depressed areas growth and stabilization
10    and identifying significant trends and developments;
11        (b)  A summary of significant problems  facing  depressed
12    areas as to their growth trends and development;
13        (c)  An  evaluation  of the progress and effectiveness of
14    Federal, State, and local  programs  designed  to  meet  such
15    problems and development and to carry out the depressed areas
16    urban growth policies;
17        (d)  An  assessment  of  the  policies  and structures of
18    existing and proposed interstate and  regional  planning  and
19    development affecting such policy; and
20        (e)  A  review  of  State,  Federal,  local  and  private
21    policies, plans and programs relevant to such policy.

22        Section  9.10.   To  lease  or rent any of the housing or
23    other  accommodations  or  any  of  the   lands,   buildings,
24    structures  or  facilities  in  which the Authority holds fee
25    simple or lesser interest, and to otherwise  sell,  exchange,
26    transfer,  or  assign,  any property, real or personal or any
27    interest  therein,  and  to  own,  hold,  clear  and  improve
28    property.

29        Section 9.11.  To acquire by purchase, gift or  otherwise
30    as provided in this Act the fee simple or lesser title to all
31    or any part of the real property in any redevelopment area.
 
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 1        Section  9.12.  To renovate or rehabilitate any structure
 2    or building acquired, or if any structure or building or  the
 3    land  supporting it has been acquired, to permit the owner to
 4    renovate or rebuild the structure or building  in  accordance
 5    with a redevelopment plan.

 6        Section 9.13.  To install, repair, construct, reconstruct
 7    or  relocate streets, roads, alleys, sidewalks, utilities and
 8    site  improvements  essential  to  the  preparation  of   the
 9    redevelopment area for use in accordance with a redevelopment
10    plan.

11        Section  9.14.   To  mortgage  or convey real or personal
12    property acquired for use in accordance with a  redevelopment
13    plan.

14        Section  9.15.   To  borrow  money,  apply for and accept
15    advances, loans, gifts, grants,  contributions,  services  or
16    other financial assistance from the federal government or any
17    agency   or   instrumentality  thereof,  the  State,  county,
18    municipality or other public body or from any source,  public
19    or  private,  for  or  in  aid  of any of the purposes of the
20    redevelopment plan, and to secure the payment of any loans or
21    advances by the issuance of revenue bonds and by  the  pledge
22    of  any loan, grant or contribution, or parts thereof, or the
23    contracts  therefore,  to  be  received  from   the   federal
24    government  or  any agency or instrumentality thereof, and to
25    enter into and carry out contracts in connection therewith.

26        Section 9.16.  To create parks, playgrounds, recreational
27    community education, water, sewer or drainage facilities,  or
28    any  other work which it is otherwise empowered to undertake,
29    adjacent to or in connection with housing projects.
 
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 1        Section 9.17.  To dedicate, sell, convey or lease any  of
 2    its  interests  in any property, or grant easements, licenses
 3    or other rights or privileges therein  to  a  public  housing
 4    development body or the Federal or State governments.

 5        Section  9.18.   To exercise all powers available to land
 6    clearance commissions under the "Blighted Areas Redevelopment
 7    Act of 1947", as now or hereafter amended,  and  to  initiate
 8    and implement slum and blighted areas redevelopment projects.
 9    However,  the  Authority  shall  not  exercise eminent domain
10    powers pursuant to the "Blighted Areas Redevelopment  Act  of
11    1947",  and  with reference to the exercise of eminent domain
12    authority, this Act shall control.

13        Section 9.19.  To develop a  comprehensive  redevelopment
14    plan for each neighborhood in depressed areas.

15        Section  9.20.   To hold public hearings on redevelopment
16    plans.

17        Section 9.21.  To fix, alter, charge  and  collect  fees,
18    rentals  and   other charges for the use of the facilities of
19    or for the services rendered by the  Authority,  or  projects
20    thereof, at rates to be determined by agreement or otherwise,
21    for  the  purpose  of  providing  for  the  expenses  of  the
22    Authority,  the construction, improvement, repair, equipping,
23    and furnishing of its facilities and properties, the  payment
24    of  the  principal  and  interest  on  its obligations and to
25    fulfill the terms and provisions of any agreements made  with
26    the  purchasers  or  holders  of  any such obligations.  Such
27    fees, rentals and other charges  shall  include  charges  for
28    interest due bond holders on all outstanding construction and
29    improvement,  and  engineering  and  administration costs not
30    reimbursed to the Authority; and  shall  include  charges  to
 
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 1    reimburse   completely   the   Authority   beginning   in  an
 2    appropriate year for the principal on  such  bonds  within  a
 3    period  of  years specified by the Authority to meet its bond
 4    payment schedules.

 5        Section 9.22.  (a) To borrow money pursuant to a  revenue
 6    bond ordinance or resolution passed by the Authority within 4
 7    years of the effective date of this Act, for the acquisition,
 8    construction  and  improvement of projects in such amounts as
 9    necessary for defraying the cost  of  such  projects  and  to
10    secure the payment of all or any of its revenues, rentals and
11    receipts,  and to make such agreements with the purchasers or
12    holders of such bonds or with others in connection  with  any
13    bonds  whether issued or to be issued, as the Authority shall
14    deem advisable and in general, to provide for the security of
15    such bonds and the rights of the holders thereof.
16        (b)  However no bonds may  be  issued  by  the  Authority
17    unless  the  Authority offers, in writing, to the agencies or
18    municipalities represented by  directors  on  the  Authority,
19    excluding  the  director appointed by the Governor, the first
20    opportunity  to  issue  revenue  bonds  for  the  project  or
21    combination of projects.   If the offer to issue bonds is not
22    accepted in writing, within 6 weeks, by any  such  agency  or
23    municipality,  the  Authority may issue revenue bonds for the
24    purpose for which the bonding opportunity was offered to  the
25    agencies or municipalities.

26        Section  9.23.  To provide that any real property sold by
27    the  Authority  is  used  in  accordance   with   the   final
28    redevelopment  plan, and the Authority shall inquire into and
29    satisfy themselves concerning the financial  ability  of  the
30    purchaser  to  complete  the redevelopment in accordance with
31    the redevelopment plan and shall  require  the  purchaser  to
32    execute  in  writing  such  undertakings as the Authority may
 
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 1    deem necessary to obligate the purchaser to:
 2        (a)  Use the land for  the  purposes  designated  in  the
 3    approved plan,
 4        (b)  Commence   and   complete   the   building   of  the
 5    improvements within the periods of time which  the  Authority
 6    fixes as reasonable, and
 7        (c)  Comply  with  such other conditions as are necessary
 8    to carry out the purposes of the final redevelopment plan.

 9        Section  9.24.    To   sell   any   property   within   a
10    redevelopment  area  in  which  the  Authority  holds the fee
11    simple title or any lesser interest, provided that  all  real
12    property  shall be sold for at least its use value, which may
13    be less than its acquisition cost.

14        Section 9.25.   Pursuant  to  appropriations,  to  direct
15    disbursements   from   the  "Depressed  Areas  Land  Use  and
16    Community Development Fund" for the purposes of this Act.

17        Section 10.  The Authority may by resolution provide  for
18    an  initial study and survey to determine if a depressed area
19    contains  any  commercially,   industrially,   residentially,
20    recreationally or other blighted areas.
21        (a)  In  making  the survey and study the Authority board
22    shall:
23             (1)  Cooperate with and use evidence gathered by any
24        public or private organization relative to the  existence
25        or extent of blight in the depressed area;
26             (2)  Hold  public  hearings, conduct investigations,
27        hear testimony and gather evidence relating to blight and
28        its elimination;
29             (3)  Create an Advisory Committee of not  less  than
30        11  persons,  to  be  appointed  by the chairman with the
31        approval of the Authority, which committee shall  consist
 
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 1        of  representatives  from among local merchants, property
 2        owners, associations, human relations commissions,  labor
 3        organizations and other civic groups; and
 4             (4)  Formulate a proposed redevelopment plan for the
 5        East St. Louis blighted area, provided that such plan has
 6        received  the  approval  and  recommendations  of  a  2/3
 7        majority vote of the members.
 8        (b)  If as a result of their initial study and survey the
 9    Authority   determines   that   one   or  more  commercially,
10    industrially, residentially,  recreationally,  educationally,
11    or  other blighted areas are existing in the depressed areas,
12    the Authority may by resolution set forth the  boundaries  of
13    each blighted area and the factors that exist in the blighted
14    area  that  are  detrimental  to  the  public health, safety,
15    morals and welfare.
16        In the same resolution the Authority may  provide  for  a
17    public  hearing  on  the designation of an area as a blighted
18    area and may submit  proposed  redevelopment  plans  for  the
19    blighted area.
20        At  least  20 days before the hearing the Authority shall
21    give notice of the hearing by publication at least once in  a
22    newspaper of general circulation within the depressed area.
23        (c)  At  the  hearing  on the designation of an area as a
24    blighted area, the Authority shall  introduce  the  testimony
25    and  evidence  that entered into their decision to declare an
26    area a blighted area, and shall enter into the record of  the
27    proceedings  all  proposed redevelopment plans received at or
28    prior to the hearing.  All interested persons may appear  and
29    shall  be  given an opportunity to testify for or against any
30    proposed redevelopment plan.  The hearing  may  be  continued
31    from time to time at the discretion of the Authority to allow
32    necessary  changes in any proposed plan or to hear or receive
33    additional testimony from interested persons.
34        (d)  At the conclusion  of  the  hearing  on  blight  the
 
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 1    Authority  shall  formulate and publish a final redevelopment
 2    plan for the blighted area after approval of a  2/3  majority
 3    vote of the members of the Advisory Committee, which plan may
 4    incorporate  any  exhibit,  plan, proposal, feature, model or
 5    testimony resulting from the hearing. The final redevelopment
 6    plan shall be presented to the corporate authorities  in  the
 7    territory  covered  by  the  redevelopment  plan.  The  final
 8    redevelopment  plan shall be made available for inspection by
 9    all interested parties.
10        (e)  Within 30 days after  the  publication  of  a  final
11    redevelopment plan, any person aggrieved by the action of the
12    Authority   may  seek  a  review  of  the  decision  and  the
13    redevelopment plan under the "Administrative Review Law". The
14    provisions of that Law and all amendments  and  modifications
15    thereof and the rules adopted pursuant thereto shall apply to
16    review  of  the  final  redevelopment  plan.  If no action is
17    initiated under the Administrative  Review  Law,  or  if  the
18    court  sustains  the  Authority and the redevelopment plan as
19    presented, or as amended by  the  court,  the  Authority  may
20    proceed to carry out the final redevelopment plan.

21        Section 11.  The Authority is authorized and empowered to
22    incur indebtedness and issue revenue bonds in compliance with
23    subsection  (b)  of  Section  9.22 for the purpose of raising
24    funds  for  carrying  out   the   provisions   of   a   final
25    redevelopment   plan   providing   for  the  eradication  and
26    elimination  of  blight  and  acquisition,   development   or
27    redevelopment  of  blight  areas and any other area which may
28    constitute a redevelopment area within  the  depressed  area.
29    The  resolution  of the Authority authorizing the issuance of
30    revenue bonds shall specify the total amount of the bonds  to
31    be  issued,  the  form and denomination, the date or dates of
32    maturity which shall not be later than  20  years  after  the
33    date  of issuance, and the rate of interest, which rate shall
 
                            -16-               LRB9105433LDmb
 1    not exceed the rate permitted in "An Act to authorize  public
 2    corporations  to issue bonds, other evidences of indebtedness
 3    and  tax  anticipation  warrants  subject  to  interest  rate
 4    limitations set forth therein", approved  May  26,  1970,  as
 5    amended. The bonds shall be executed by such officials as may
 6    be  provided  by  the  bond ordinance.  The bonds may be made
 7    registerable to principal and may be  made  callable  on  any
 8    interest  payment  date  at  par  and  accrued interest after
 9    notice has been given in the  manner  provided  by  the  bond
10    ordinance.   The  bonds shall remain valid even though one or
11    more of the officials  executing  the  bonds  cease  to  hold
12    office before the bonds are delivered.
13        The  bonds  shall  contain a provision that the principal
14    and interest thereon shall be payable  exclusively  from  the
15    proceeds  and  revenues  of  any  redevelopment plan which is
16    financed in whole or in part with the proceeds of such bonds,
17    together with whatever funds of the Authority  from  whatever
18    source  derived  as  are  necessary  to  constitute  a  local
19    matching   cash   grant-in-aid   or   contribution   for  the
20    redevelopment plan  within  the  meaning  of  any  applicable
21    federal or State law.  Such bonds may be additionally secured
22    by  a  pledge  of  any  loan, grant or contribution, or parts
23    thereof, received from the United States of America,  or  any
24    agency  or  instrumentality  thereof,  or  any loan, grant or
25    contribution  from  any  other  public   or   private   body,
26    instrumentality,  corporation  or  individual,  or  any  duly
27    executed   contract   for   such   pledge,   loan,  grant  or
28    contribution.
29        The officials executing the revenue bonds  shall  not  be
30    personally  liable  on  the  bonds because of their issuance.
31    The bonds shall not be the debt of any  municipality  or  the
32    State,  or  any  subdivision  thereof. The bonds shall not be
33    payable out of  any  funds  of  the  Authority  except  those
34    indicated in this Act.
 
                            -17-               LRB9105433LDmb
 1        In  connection  with  the  issuance  of the revenue bonds
 2    authorized by this Act and in order to secure the payment  of
 3    such  bonds,  the  Authority  may  recommend to the corporate
 4    authority in which the redevelopment plan is proposed subject
 5    to the powers and limitations contained  in  this  Act,  that
 6    such corporate authority convene and agree in the bonds, bond
 7    ordinance,  or  resolution,  or  any trust agreement executed
 8    pursuant thereto, to any necessary  condition,  power,  duty,
 9    liability,   or   procedure   for   the   issuance,  payment,
10    redemption, security, marketing, replacement  or  refinancing
11    of  such bonds, and the use, disposition or control of all or
12    any part of the revenues realized from a redevelopment or new
13    community plan.
14        The revenue bonds issued pursuant to a resolution  passed
15    by the Authority shall be sold to the highest and best bidder
16    at  not  less than their par value and accrued interest.  The
17    Authority shall, from time to time as bonds are to  be  sold,
18    advertise  for  proposals  to  purchase the bonds.  Each such
19    advertisement  may  be  published  in  such  newspapers   and
20    journals   as  the  Authority  may  determine,  but  must  be
21    published at least once  in  a  newspaper  having  a  general
22    circulation  in the respective area at least 10 days prior to
23    the date of the opening  of  the  bids.   The  Authority  may
24    reserve the rights to reject any and all bids and readvertise
25    for bids.
26        The   bonds   may   be   issued  without  submitting  any
27    proposition to the electorate by referendum or otherwise.

28        Section 12.  Before any proposed new  construction  of  a
29    specific   project  or  proposed  rehabilitation  project  is
30    commenced by the Authority a public hearing must be  held  by
31    the  Authority  affording  interested persons residing in the
32    area an opportunity to be heard. There shall be a  notice  of
33    the  time  and  place of the hearing published at least once,
 
                            -18-               LRB9105433LDmb
 1    not more than 30  and  not  less  than  15  days  before  the
 2    hearing,   in   one  or  more  newspapers  published  in  the
 3    municipalities located within the area of the project.   This
 4    notice  shall  contain the particular site and location to be
 5    affected as well as a brief statement of what is proposed  in
 6    the project.

 7        Section  13.   Any  deed  executed by the Authority under
 8    this Act may contain such restrictions as may be required  by
 9    the  final  redevelopment  plan  and  necessary  building and
10    zoning ordinances.  All such deeds  of  conveyance  shall  be
11    executed  in  the  name  of the Authority and the seal of the
12    Authority shall be attached to the deeds.

13        Section 14.  The Authority  may  let  contracts  for  the
14    demolition   or  removal  of buildings and for the removal of
15    any debris.  The Authority shall advertise  for  sealed  bids
16    for  doing  such  work.   The advertisement shall describe by
17    street number or other means of identification  the  location
18    of  buildings  to  be  demolished or removed and the time and
19    place when sealed bids for the work may be delivered  to  the
20    Authority.   The  advertisement  shall be published once in a
21    newspaper having a general circulation in the respective area
22    20 days prior to the date for receiving bids.
23        The contract for doing the  work  shall  be  let  to  the
24    lowest  responsible  bidder, but the Authority may reject any
25    and all bids received and readvertise for bids. Any  contract
26    entered  into  by  the  Authority  under  this  Section shall
27    contain provisions requiring the contractor to give  bond  in
28    an  amount  to  be  determined  by  the  Authority, and shall
29    require the contractor to furnish insurance  of  a  character
30    and  amount  to be determined by the Authority protecting the
31    Authority and the  municipality,  its  officers,  agents  and
32    employees against any claims for personal injuries, including
 
                            -19-               LRB9105433LDmb
 1    death  and  property  damage which may be asserted because of
 2    the contract. The Authority may include in any  advertisement
 3    and  in  the  contract one or more buildings as they in their
 4    sole discretion may determine.

 5        Section 15.  In carrying out the provisions  of  a  final
 6    redevelopment  plan,  the  Authority  may  pave  and  improve
 7    streets  in  the  redevelopment  area,  construct  walks  and
 8    install  or  relocate  sewers,  water pipes and other similar
 9    facilities. The Authority shall advertise for sealed bids for
10    doing such work.  The advertisement shall describe the nature
11    of the work to be performed and the time when and place where
12    sealed bids for the work may be delivered to  the  Authority.
13    The  advertisement  shall  be  published  once in a newspaper
14    having a general circulation in the municipality at least  20
15    days  prior  to  the date for receiving bids.  A contract for
16    doing the work shall be let to the lowest responsible bidder,
17    but the Authority may reject any and all  bids  received  and
18    readvertise  for  bids.  The contractor shall enter into bond
19    as a condition for the faithful performance of the contract.
20    The sureties on such bond shall be approved by the Authority.

21        Section 16.  When the Authority has  acquired  title  to,
22    and   possession   of   any  or  all  real  property  in  the
23    redevelopment  area,  they  may  convey  any  part   of   the
24    redevelopment  area  to  which  the  Authority  holds the fee
25    simple title or any lesser interest  to any  public  body  or
26    State chartered corporation having jurisdiction over schools,
27    parks,  low  or moderate housing, or playgrounds in the area.
28    The  property  so  conveyed  shall   be   used   for   parks,
29    playgrounds,  schools,  housing  for  low  or moderate income
30    families, and other public  purposes  as  the  Authority  may
31    determine.  The  Authority  may  charge  for  such conveyance
32    whatever price they and the officials of the public bodies or
 
                            -20-               LRB9105433LDmb
 1    State Chartered Corporations receiving  the  land  may  agree
 2    upon.   The  Authority may also grant with or without charge,
 3    easements for public utilities, sewerage  and  other  similar
 4    facilities.

 5        Section  17.   For  the  purposes  of this Act, the terms
 6    "cost of  the  construction"  of  any  project  includes  the
 7    following:
 8        (a)  Obligations  incurred for labor, and to contractors,
 9    builders  and  material   men,   in   connection   with   the
10    construction  of  any such project or projects, for machinery
11    and equipment and for the restoration of property damaged  or
12    destroyed in connection with such construction.
13        (b)  The  cost  of acquiring any property, real, personal
14    or mixed, tangible or intangible, or  any  interest  therein,
15    necessary  or  desirable  for  the  construction  of any such
16    project or projects.
17        (c)  The principal and  interest  requirements  upon  any
18    such  bonds  for  the period during which, and to the extent,
19    the rentals received by the Authority from  such  project  or
20    projects  shall  be insufficient for the payment thereof, the
21    fees and expenses of the fiscal agent  of  the  Authority  in
22    respect  of  such  bonds  during  any  such  period,  and the
23    reasonable fees and expenses of any paying  agents  for  such
24    bonds during such period.
25        (d)  The   taxes   or  other  municipal  or  governmental
26    charges, if any, in  connection  with  any  such  project  or
27    projects during construction.
28        (e)  The  cost and expenses of preliminary investigations
29    of the feasibility or practicality of constructing  any  such
30    project  or  projects  and fees and expenses of engineers for
31    making preliminary studies, surveys, repairs, estimates,  and
32    for   preparing  plans  and  specifications  and  supervising
33    construction as well as for  the  performance  of  all  other
 
                            -21-               LRB9105433LDmb
 1    duties  of  engineers in relation to such construction or the
 2    issuance of bonds therefor.
 3        (f)  Expenses of administration  properly  chargeable  to
 4    any  such  project  or  projects  during  construction, legal
 5    expenses and fees, financing charges, costs of audits and  of
 6    preparing  and  issuing  such  bonds,  and all other items of
 7    expense not elsewhere specified, ancient to the  construction
 8    of   any   such  projects,  the  financing  thereof  and  the
 9    acquisition  of  lands,  property  rights,  rights  of   way,
10    franchises,   easements   and  interest  therefor,  including
11    abstracts of title, title insurance, title opinions, costs of
12    surveys, reports and other expenses in connection  with  such
13    acquisition.

14        Section  18.   The  Authority  may pledge, hypothecate or
15    otherwise encumber all or any of the revenues or receipts  of
16    the  Authority  as security for all or any of the obligations
17    of the Authority.

18        Section 19.  The Authority may construct, acquire by gift
19    or purchase,  reconstruct,  improve,  better  or  extend  any
20    project  within  or  without  the  municipality  or partially
21    within or without the municipality, but in no  event  farther
22    than   3  miles  from  the  territorial  boundaries  of  such
23    municipality, and acquire by gift or purchase lands or rights
24    in land in connection therewith.

25        Section 20.  The Authority shall have  no  power  at  any
26    time or in any manner to pledge the credit or taxing power of
27    the  State  of  Illinois,  or  a  municipality  or  corporate
28    authority or any other unit of local government nor shall any
29    of  its obligations be considered obligations of the State of
30    Illinois, or any other unit of government.
 
                            -22-               LRB9105433LDmb
 1        Section 21.  Within 60 days after the end of each  fiscal
 2    year, the Authority shall cause to be prepared by a certified
 3    public   accountant   a  complete  and  detailed  report  and
 4    financial  statement  of  the  operation   and   assets   and
 5    liabilities  of the Authority.  A sufficient number of copies
 6    of such report shall be prepared for distribution to  persons
 7    interested,  upon  request, and a copy thereof shall be filed
 8    with the Governor and the General Assembly.

 9        Section 22.  The Authority may investigate conditions  in
10    any  project  in which it has an interest.  In the conduct of
11    such investigations the Authority may hold public hearings on
12    its own motion, and shall do so on complaint or  petition  of
13    any person.  Each member of the Authority shall have power to
14    administer   oaths,  and  the  secretary,  by  order  of  the
15    Authority, shall issue subpoenas to secure the attendance and
16    testimony of witnesses,  and  the  production  of  books  and
17    papers,  before the Authority or before any member thereof or
18    any officer or committee appointed by the Authority.
19        In the conduct of any investigation the Authority  shall,
20    at  its  expense,  provide  a  stenographer  to take down all
21    testimony and shall preserve a record  of  such  proceedings.
22    The  notice of hearing, complaint, and all other documents in
23    the nature of pleading and  written  motions  and  orders  of
24    decision of the Authority shall constitute the record of such
25    proceedings.
26        The  Authority  is  not required to testify and record or
27    file any answer, or otherwise respond in any proceedings  for
28    judicial  review  of  an  administrative  decision unless the
29    party asking for review deposits with the clerk of the  court
30    the  sum  of  $1 per page of records representing the cost of
31    such certification.  Failure to make such deposit  is  ground
32    for dismissal of action.
 
                            -23-               LRB9105433LDmb
 1        Section  23.   The  Authority  has  the power to pass all
 2    resolutions and make all rules  and  regulations  proper  and
 3    necessary  to  give effect to the power granted the Authority
 4    under this Act.

 5        Section 24.  All final administrative  decisions  of  the
 6    Authority shall be subject to judicial review pursuant to the
 7    provisions   of   the  Administrative  Review  Law,  and  all
 8    amendments and modifications thereof and  the  rules  adopted
 9    pursuant  thereto.   The  term  "administrative  decision" is
10    defined as in Section 3-101 of the Administrative Review Law.

11        Section 25.  The powers contained in this Act  shall  not
12    be exercised by the Authority:
13        a)  within  the  boundaries of any municipality or within
14    the boundaries of any territory over which a municipality has
15    jurisdiction unless the exercise of those powers therein  has
16    been  approved  by  the  mayor  or  village  president of the
17    municipality; or
18        b)  within the boundaries of any unincorporated area of a
19    township unless the exercise of those powers therein has been
20    approved by the supervisor of the township.

21        Section 27.  Legislative Findings.  The General  Assembly
22    finds  that  the financial difficulties, inadequate tax base,
23    lack of vital services,  lack  of  economic  development  and
24    various  other problems in the East St. Louis area are unique
25    in Illinois, and that it is desirable to specifically address
26    those  problems  by  authorizing   the   designation   of   a
27    demonstration enterprise zone in the East St. Louis area.

28        Section  28.  Applicability.   The provisions of Sections
29    27 through 35 apply only to a demonstration enterprise  zone,
30    and  such  provisions  do  not  apply to any other enterprise
 
                            -24-               LRB9105433LDmb
 1    zone.  All provisions of this Act apply  to  a  demonstration
 2    enterprise zone, except as follows:
 3        (1)  if the provisions of Sections 27 through 35 conflict
 4    with other provisions of this Act, the provisions of Sections
 5    27 through 35 shall control; and
 6        (2)  with  respect  to the demonstration enterprise zone,
 7    the Authority shall exercise and perform all powers,  duties,
 8    and  functions  under this Act that would be performed by the
 9    Department of Commerce and Community Affairs with respect  to
10    other enterprise zones.

11        Section 29.  Definitions.  As used in Sections 27 through
12    35:
13        "Zone"   or   "enterprise  zone"  means  a  demonstration
14    enterprise zone.
15        "Area" means the city of East St. Louis area.
16        "Zone  development   corporation"   means   a   nonprofit
17    corporation  or  association  created  by  the  Authority  to
18    formulate  and  propose  a  preliminary zone development plan
19    under Section 32 of this Act.
20        "Zone development plan"  means  a  plan  adopted  by  the
21    Authority  for the development of an enterprise zone, and for
22    the direction and coordination of  activities  of  the  area,
23    zone  businesses,  and  community  organizations  within  the
24    enterprise   zone  toward  the  economic  betterment  of  the
25    residents of the zone and the area.
26        "Zone neighborhood association" means  a  corporation  or
27    association  of  persons who either are residents of, or have
28    their principal place of employment in,  the  area;  that  is
29    organized  under the provisions of the General Not For Profit
30    Corporation Act of  1986  and  that  has  for  its  principal
31    purpose the encouragement and support of community activities
32    within,  or  on  behalf  of,  the zone so as to (i) stimulate
33    economic activity,  (ii)  increase  or  preserve  residential
 
                            -25-               LRB9105433LDmb
 1    amenities, or (iii) otherwise encourage community cooperation
 2    in achieving the goals of the zone development plan.
 3        "Enterprise  Zone  Assistance  Fund"  or "Fund" means the
 4    Fund created by Section 35 of this Act.
 5        "Authority" means the East  St.  Louis  Area  Development
 6    Authority.

 7        Section   30.  Designation  of  Demonstration  Enterprise
 8    Zone.   The  Authority  may   by   resolution   designate   a
 9    demonstration  enterprise  zone in accordance with Section 32
10    of this Act. If the approval of the demonstration  enterprise
11    zone require the alteration or decertification of an existing
12    enterprise  zone,  the  Authority shall take that action upon
13    the adoption of such a proposal.

14        Section 31.  Zone development corporation.  The Authority
15    shall, by resolution, create a  nonprofit  corporation  under
16    the  provisions  of General Not For Profit Corporation Act of
17    1986 to act as  the  zone  development  corporation  for  the
18    Authority.  The zone development corporation so created shall
19    include  on  its  board  of  directors representatives of the
20    governments of the area, members of the  business  community,
21    of  the area, members of the labor community in the area, and
22    representatives of community organizations in the  area,  and
23    the  total  membership  of  the  board  of directors shall be
24    broadly representative of businesses and  communities  within
25    the area.

26        Section  32.  Preliminary  zone  development  plan.   The
27    Authority  shall cause a preliminary zone development plan to
28    be formulated,  with  the  assistance  of  any  officers  and
29    agencies  of the area as the governing body may see fit.  The
30    preliminary  zone  development  plan  shall  set  forth   the
31    boundaries  of the proposed enterprise zone, findings of fact
 
                            -26-               LRB9105433LDmb
 1    concerning the economic and social conditions existing in the
 2    property proposed for an enterprise zone, and the Authority's
 3    policy and intentions for addressing  these  conditions,  and
 4    may include proposals respecting:
 5        (1)  Utilizing  the  powers conferred on the Authority by
 6    law for the purpose of stimulating investment in and economic
 7    development of the proposed zone in specific  proposals  that
 8    promote  industrial retention and development as a foundation
 9    for general community development,  that  promotes  providing
10    technical  and financial assistance, promoting vocational and
11    entrepreneurial training, upgrading production techniques and
12    use of modern technology in local companies, promoting  local
13    and  cooperative ownership of companies, increasing community
14    participation  in  development  strategies,   and   launching
15    specific initiatives to save existing companies, and to start
16    new companies in the proposed zone;
17        (2)  Utilizing State assistance through the provisions of
18    this  Act  relating  to exemptions from, and credits against,
19    State taxes;
20        (3)  Securing the involvement in, and commitment to, zone
21    economic development  by  private  entities,  including  zone
22    neighborhood  associations, voluntary community organizations
23    supported by residents and businesses in the zone;
24        (4)  Utilizing the powers  conferred  by  law  to  revise
25    municipal  planning  and zoning ordinances and other land use
26    regulations as they pertain to the zone, in order to  enhance
27    the attraction of the zone to prospective developers;
28        (5)  Increasing   the   availability  and  efficiency  of
29    support services, public and private, generally used  by  and
30    necessary  to  the  efficient  functioning  of commercial and
31    industrial facilities in the area, and the  extent  to  which
32    the  increase or improvements are to be provided and financed
33    by the city governments in the area or by other entities; and
34        (6)  Utilizing  the  powers  of  the   zone   development
 
                            -27-               LRB9105433LDmb
 1    corporation  created  by  the Authority to provide short term
 2    contract  financing,   equipment   installment   loans,   and
 3    equity-match  financing for selected small businesses located
 4    in the area.

 5        Section 33.  Proposals for funding.  The Authority  shall
 6    receive   and   evaluate  proposals  from  the  demonstration
 7    enterprise  zone  for  funding  of  projects  and   increased
 8    eligible   municipal   services   from  the  Enterprise  Zone
 9    Assistance Fund.

10        Section 34.  Certification by Authority.   The  Authority
11    shall  certify  annually to the State Treasurer amounts to be
12    paid from the Fund to support approved projects and increased
13    eligible municipal services in the  demonstration  enterprise
14    zone.

15        Section 35.  Enterprise Zone Assistance Fund.
16        (a)  There  is created an Enterprise Zone Assistance Fund
17    to be held  by  the  State  Treasurer,  which  shall  be  the
18    repository  for  all moneys required to be deposited into the
19    Fund under Section 13.2 of the Riverboat Gambling Act, moneys
20    appropriated annually to the Fund and moneys  available  from
21    other sources. All moneys deposited in the Fund shall be held
22    and  disbursed  in  the  amounts  necessary  to  fulfill  the
23    purposes  of  this  Section  and  shall  be  subject  to  the
24    requirements hereinafter prescribed.  The State Treasurer may
25    invest  and  reinvest  any moneys in the Fund, or any portion
26    thereof, in legal obligations of the United States or of  the
27    State  or  of  any political subdivision thereof.  Any income
28    from, interest on, or increment  to  moneys  so  invested  or
29    reinvested shall be included in the Fund.
30        (b)  The  State  Treasurer  shall  promulgate  the  rules
31    necessary  to  govern  the administration of the Fund for the
 
                            -28-               LRB9105433LDmb
 1    purposes of this Section.
 2        (c)  The Fund shall be used for the purpose of  assisting
 3    the  Authority  in  undertaking  public  improvements  and in
 4    upgrading  eligible  municipal  services  in  the  enterprise
 5    zones.
 6        (d)  The Authority and the zone  development  corporation
 7    created  by  the  Authority  for that enterprise zone may, by
 8    resolution jointly adopted after public hearing,  propose  to
 9    undertake  a  project  for  the  public  improvement  of  the
10    enterprise zone or to increase eligible municipal services in
11    the  enterprise  zone and to fund that project or increase in
12    eligible municipal services  from  moneys  deposited  in  the
13    Fund.  The proposal so adopted shall set forth a plan for the
14    project  or  for  the increase in eligible municipal services
15    and shall include:
16             (1)  A description of the proposed project or of the
17        municipal services to be increased;
18             (2)  An estimate of the total project costs,  or  of
19        the total costs of increasing the municipal services, and
20        an  estimate of the amounts of funding necessary annually
21        from the Fund;
22             (3)  A statement of any other revenue sources to  be
23        used  to  finance  the project or to fund the increase in
24        eligible municipal services; and
25             (4)  A statement of the manner in which the proposed
26        project or increase in municipal  services  furthers  the
27        Authority's  policy  and  intentions  for  addressing the
28        economic and social conditions existing in  the  area  of
29        the enterprise zone.
30        As  used in this Section, "project" means the purchasing,
31    leasing, condemning, or otherwise acquiring of land or  other
32    property,  or  an interest therein, in the enterprise zone or
33    as necessary for a right-of-way or other easement to or  from
34    the  enterprise  zone;  the  relocating and moving of persons
 
                            -29-               LRB9105433LDmb
 1    displaced  by  the  acquisition  of  land  or  property;  the
 2    rehabilitation  and  redevelopment  of  land   or   property,
 3    including   demolition,   clearance,   removal,   relocation,
 4    renovation,    alteration,    construction,   reconstruction,
 5    installation  or  repair  of  land  or  a  building,  street,
 6    highway, alley,  utility,  service,  or  other  structure  or
 7    improvement;  the  acquisition, construction, reconstruction,
 8    rehabilitation, or  installation  of  public  facilities  and
 9    improvements, except buildings and facilities for the general
10    conduct  of  government and schools; and the costs associated
11    therewith including the costs of an administrative appraisal,
12    economic and environmental analyses or engineering, planning,
13    design,  architectural,  surveying  or   other   professional
14    services necessary to effectuate the project.
15        As  used  in  this Section, "eligible municipal services"
16    means the hiring of additional policemen or firemen  assigned
17    duties  in  the enterprise zone, or the purchasing or leasing
18    of  additional  police  or  fire  vehicles,   equipment,   or
19    apparatus  to  be  used  for  the  provision  of augmented or
20    upgraded public safety services in the  enterprise  zone  and
21    its immediate vicinity.
22        (e)  Upon  adoption  by  the  Authority  and  by the zone
23    development corporation, the proposal shall be  sent  to  the
24    Authority for its evaluation and approval.  The Authority and
25    the  zone  development corporation shall approve the proposal
26    if:
27             (1)  In the case of a project, the proposed  project
28        furthers   the   policy   and   intentions  of  the  zone
29        development plan and the estimated  annual  payments  for
30        the  project  from the Fund are not likely to result in a
31        deficit in the Fund;
32             (2)  In  the  case  of  an  increase   in   eligible
33        municipal  services, the proposal furthers the policy and
34        intentions of the zone development  plan,  the  Authority
 
                            -30-               LRB9105433LDmb
 1        has furnished satisfactory assurances that the additional
 2        policemen  or  firemen  to  be  hired,  or the additional
 3        vehicles, equipment, or  apparatus  to  be  purchased  or
 4        leased, shall be used to augment or upgrade public safety
 5        in  the  enterprise  zone  and shall not be used in other
 6        areas  of  the  area;  the   Authority   shall   annually
 7        appropriate for the increased eligible municipal services
 8        an  amount  equal to 20% of the amount of annual payments
 9        for the eligible municipal services from  the  Fund;  and
10        the  estimated annual payments for the eligible municipal
11        services from the Fund are not  likely  to  result  in  a
12        deficit in the Fund.
13        (f)  The  Authority  shall  annually certify to the State
14    Treasurer the amount to be paid in that year  from  the  Fund
15    with   respect  to  each  project  or  increase  in  eligible
16    municipal services approved.  The Authority may at  any  time
17    revoke  its  approval of a project or an increase in eligible
18    municipal services if it finds that the annual payments  made
19    from the Fund are not being used as required by this Section.
20        (g)  Upon  certification  by  the Authority of the annual
21    amount to be paid  to  the  Authority  with  respect  to  any
22    project or increase in eligible municipal services, the State
23    Treasurer  shall  pay  in each year to the Authority from the
24    amounts deposited in the Fund the amount so certified.

25        Section 200. The State Finance Act is amended  by  adding
26    Section 5.490 as follows:

27        (30 ILCS 105/5.490 new)
28        Sec. 5.490. The Enterprise Zone Assistance Fund.

29        Section  205.   The  Riverboat Gambling Act is amended by
30    changing Sections 13  and  23  and  adding  Section  13.2  as
31    follows:
 
                            -31-               LRB9105433LDmb
 1        (230 ILCS 10/13) (from Ch. 120, par. 2413)
 2        Sec. 13.  Wagering tax; rate; distribution.
 3        (a)  Until  January  1,  1998,  a  tax  is imposed on the
 4    adjusted  gross  receipts  received   from   gambling   games
 5    authorized under this Act at the rate of 20%.
 6        Beginning  January 1, 1998, a privilege tax is imposed on
 7    persons engaged  in  the  business  of  conducting  riverboat
 8    gambling  operations,  based  on  the adjusted gross receipts
 9    received by a licensed owner from gambling  games  authorized
10    under this Act at the following rates:
11             15%  of  annual  adjusted  gross  receipts up to and
12        including $25,000,000;
13             20% of annual adjusted gross receipts in  excess  of
14        $25,000,000 but not exceeding $50,000,000;
15             25%  of  annual adjusted gross receipts in excess of
16        $50,000,000 but not exceeding $75,000,000;
17             30% of annual adjusted gross receipts in  excess  of
18        $75,000,000 but not exceeding $100,000,000;
19             35%  of  annual adjusted gross receipts in excess of
20        $100,000,000.
21        The taxes imposed by this Section shall be  paid  by  the
22    licensed  owner to the Board not later than 3:00 o'clock p.m.
23    of the day after the day when the wagers were made.
24        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
25    deposited  in  the State Gaming Fund under this Section shall
26    be paid, subject to appropriation by the General Assembly, to
27    the unit of local government which is designated as the  home
28    dock  of  the riverboat.  Beginning January 1, 1998, from the
29    tax revenue deposited in the State  Gaming  Fund  under  this
30    Section,  an  amount  equal  to 5% of adjusted gross receipts
31    generated by a riverboat shall be paid  monthly,  subject  to
32    appropriation  by  the General Assembly, to the unit of local
33    government that  is  designated  as  the  home  dock  of  the
34    riverboat.
 
                            -32-               LRB9105433LDmb
 1        (c)  Appropriations, as approved by the General Assembly,
 2    may  be  made from the State Gaming Fund to the Department of
 3    Revenue  and  the  Department  of  State   Police   for   the
 4    administration and enforcement of this Act.
 5        (d)  From  time  to  time,  the  Board shall transfer the
 6    remainder of the funds generated by this Act, except the  tax
 7    revenue   generated   pursuant  to  Section  13.2,  into  the
 8    Education Assistance Fund, created by Public Act 86-0018,  of
 9    the State of Illinois.
10        (e)  Nothing in this Act shall prohibit the unit of local
11    government  designated as the home dock of the riverboat from
12    entering into agreements with other units of local government
13    in this State or in other states to share its portion of  the
14    tax revenue.
15        (f)  To   the   extent   practicable,   the  Board  shall
16    administer and collect the wagering  taxes  imposed  by  this
17    Section  in  a  manner  consistent  with  the  provisions  of
18    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
19    6c,  8,  9,  and  10 of the Retailers' Occupation Tax Act and
20    Section 3-7 of the Uniform Penalty and Interest Act.
21    (Source: P.A. 89-21, eff. 7-1-95; 90-548, eff. 12-4-97)

22        (230 ILCS 10/13.2 new)
23        Sec. 13.2.  Investment  alternative  tax;  credits;  bond
24    purchase contracts.
25        (a)  Commencing  with  the  first calendar year beginning
26    after December 31,  1999,  there  is  imposed  an  investment
27    alternative  tax  on  the  adjusted  gross  receipts  of each
28    licensed owner conducting gambling operations under this  Act
29    from  a  home dock in the City of East St. Louis.  The amount
30    of the tax is 2.5% of the adjusted gross receipts.   The  tax
31    imposed  with  respect to each calendar year shall be due and
32    payable on the last day of April next following  the  end  of
33    the  calendar  year.   The  State Treasurer shall have a lien
 
                            -33-               LRB9105433LDmb
 1    against the property constituting the riverboats and on-shore
 2    facilities owned by a licensee for the amount of any tax  not
 3    paid when due.
 4        (b)  A  licensee  shall  pay to the State Treasurer on or
 5    before the 15th day of the first, fourth, seventh, and  tenth
 6    months  of  each  year  as  partial payment of the investment
 7    alternative tax imposed under subsection (a) an amount  equal
 8    to  1.25%  of  the  estimated adjusted gross receipts for the
 9    3-month period immediately preceding the first day  of  those
10    months.   The  moneys  received  shall be placed in an escrow
11    account and shall be held until the licensee directs that the
12    moneys be transferred to the East St. Louis Area  Development
13    Authority  for  the  purchase  of  bonds issued by or offered
14    through  the  Authority  or  under  a  contract  for  such  a
15    purchase, be made available to  the  licensee  for  a  direct
16    investment  approved  by  the Authority, or be transferred to
17    the Enterprise Zone Assistance Fund as partial payment of the
18    investment alternative tax imposed under subsection (a).  Any
19    interest derived from the moneys in the escrow account  shall
20    be  paid  into  the  Enterprise  Zone  Assistance Fund.  If a
21    licensee fails to pay the  amount  due  or  underpays  by  an
22    unjustifiable amount, the Gaming Board shall impose a fine of
23    5%  of the amount due or of the underpayment, as the case may
24    be, for each month or portion of a month the licensee  is  in
25    default  of payment, up to 25% of the amount in default.  Any
26    fine  imposed  shall  be  paid  into  the   Enterprise   Zone
27    Assistance Fund.
28        (c)  Each licensee required to pay tax under this Section
29    shall be entitled to an investment tax credit against the tax
30    imposed  by  subsection (a) in the following amounts: (1) for
31    the first 10 years of a  licensee's  tax  obligation,  in  an
32    amount  equal  to twice the purchase price of bonds issued by
33    the Authority purchased by the licensee, or twice the  amount
34    of  the  investments  authorized in lieu thereof, and (2) for
 
                            -34-               LRB9105433LDmb
 1    the remainder of a licensee's obligation, in an amount  equal
 2    to  twice the purchase price of bonds issued by the Authority
 3    and purchased by the licensee, or twice  the  amount  of  the
 4    investments  authorized in lieu thereof, and twice the amount
 5    of investments  made  by  a  licensee  in  other  investments
 6    approved  by  the  Authority.   The  Authority shall have the
 7    power to enter into a contract or contracts with  a  licensee
 8    under  which  the Authority agrees to issue and sell bonds to
 9    the licensee, and the licensee agrees to purchase  the  bonds
10    issued  by  or  offered  through  the  Authority,  in  annual
11    purchase price amounts as will constitute a credit against at
12    least  50%  of  the  tax  to become due in any future year or
13    years.  The contract may contain those terms  and  conditions
14    relating  to  the  terms of the bonds and to the issuance and
15    sale of the bonds to the licensee as the Authority shall deem
16    necessary or desirable.   After  the  first  10  years  of  a
17    licensee's  investment alternative tax obligation, a licensee
18    will have the option of entering into  a  contract  with  the
19    Authority   to  have  its  tax  credit  comprised  of  direct
20    investments in  approved  eligible  projects.   These  direct
21    investments  shall not comprise more than 50% of a licensee's
22    eligible tax credit in any one year.
23        The entering of a contract under this  Section  shall  be
24    sufficient  to entitle a licensee to an investment tax credit
25    for the appropriate tax year.
26        (d)  A contract entered into between a licensee  and  the
27    Authority  may  provide  for  a  deferral  of payment for and
28    delivery of bonds required to be purchased and for a deferral
29    from making approved eligible investments in any year, but no
30    deferral shall occur more  than  2  years  consecutively.   A
31    deferral of payment for any bonds required to be purchased by
32    a  licensee  and  a  deferral  from  making approved eligible
33    investments may be granted  by  the  Authority  only  upon  a
34    determination  by  the  Gaming  Board  that purchase of these
 
                            -35-               LRB9105433LDmb
 1    bonds or making approved  eligible  investments  would  cause
 2    extreme   financial   hardship   to   the   licensee   and  a
 3    determination by the  Authority  that  the  deferral  of  the
 4    payment would not violate any covenant or agreement or impair
 5    any  financial obligation of the Authority.  The contract may
 6    establish a late payment charge to be paid in  the  event  of
 7    deferral  or  other  late  payment  at  an agreed rate.  If a
 8    deferral of purchase or investment is granted,  the  licensee
 9    shall  be  deemed  to have made the purchase or investment at
10    the time  required  by  the  contract,  except  that  if  the
11    purchase  is  not  made  at the time to which the purchase or
12    investment was deferred, then the licensee  shall  be  deemed
13    not  to  have  made  the  purchase or investment.  The Gaming
14    Board shall adopt rules establishing a uniform definition  of
15    extreme financial hardship applicable to all contracts.  If a
16    licensee   petitions   the  Authority  for  a  deferral,  the
17    Authority shall give notice of that petition  to  the  Gaming
18    Board  within  3  days  of  the  filing of the petition.  The
19    Gaming Board shall render a decision within 60  days  of  the
20    notice  as  to  whether  the licensee has established extreme
21    financial hardship.  The Authority shall render a decision as
22    to the availability of the deferral within  10  days  of  the
23    receipt  by  it of the decision of the Gaming Board and shall
24    notify the Gaming Board of that decision.  If a  deferral  is
25    granted, the Authority may determine whether the purchases of
26    investments shall be made in a lump sum or made over a period
27    of  years,  or  whether  the  period  of  obligation shall be
28    extended an additional  period  of  time  equivalent  to  the
29    period of time deferred.
30        (e)  The license of any licensee that has defaulted for a
31    period  of  90 days in its obligation to make any purchase of
32    bonds or investment in any approved eligible project under  a
33    contract  entered  into  under subsection (c) of this Section
34    for a period of 90 days may be suspended by the Gaming  Board
 
                            -36-               LRB9105433LDmb
 1    until  that  purchase  is made or deferred in accordance with
 2    subsection (c) of this Section, or a fine  or  other  penalty
 3    may  be imposed upon the licensee by the Gaming Board. If the
 4    Gaming Board elects not to suspend the license of a  licensee
 5    after  the licensee has first defaulted in its obligation but
 6    instead  imposes  some  lesser  penalty  and   the   licensee
 7    continues  to  be in default of its obligation after a period
 8    of 30 additional days and after any subsequent 30-day period,
 9    the Gaming Board may impose another fine or penalty upon  the
10    licensee,  which  may  include  suspension of that licensee's
11    license.   The  fine  shall  be  5%  of  the  amount  of  the
12    obligation owed for each  month  or  portion  of  a  month  a
13    licensee  is  in  default, up to 25% of that obligation.  The
14    fine shall be paid into the Enterprise Zone Assistance Fund.
15        (f)  A contract  entered  into  by  a  licensee  and  the
16    Authority  under  subsection  (c) of this Section may provide
17    that after the first 10  years  of  a  licensee's  investment
18    alternative  tax obligation imposed by subsection (a) of this
19    Section, the Authority may repurchase bonds  previously  sold
20    to  the licensee, which were issued after the tenth year of a
21    licensee's investment  alternative  tax  obligation,  by  the
22    Authority,  if  the  Authority determines that the repurchase
23    will not violate any agreement  or  covenant  or  impair  any
24    financial  obligation  of the Authority and that the licensee
25    will reinvest the proceeds  of  the  resale  in  an  eligible
26    project approved by the Authority.
27        (g)  During  the  25 years a licensee is obligated to pay
28    an investment alternative tax under subsection  (o)  of  this
29    Section,  the total of the proceeds of all bonds purchased by
30    a licensee from or through the  Authority  and  all  approved
31    investments  in  eligible  projects  by  a  licensee shall be
32    devoted to the financing of projects in the  East  St.  Louis
33    Depressed Areas.
34        For  the  purposes of this Section, bond "proceeds" means
 
                            -37-               LRB9105433LDmb
 1    all funds received from the  sale  of  bonds  and  any  funds
 2    generated  or  derived  therefrom,  "East St. Louis Depressed
 3    Areas"  means  the  territorial  areas  of  East  St.  Louis,
 4    Alorton, Venice, Centreville,  and  Brooklyn,  Illinois,  and
 5    "Depressed Areas" means the areas of East St. Louis, Alorton,
 6    Venice, Centreville, and Brooklyn, Illinois.
 7        The Authority shall determine the allocation of projected
 8    available  moneys.    Municipalities  receiving an allocation
 9    shall present to the Authority for its approval comprehensive
10    plans or projects for which the allocations  shall  be  used.
11    Any  comprehensive  plans or projects may be submitted to the
12    Authority for a determination  of  eligibility  at  any  time
13    before  the  year  for which the funds are allocated, and the
14    Authority shall make a determination of  eligibility  of  the
15    plan  or  project within a reasonable amount of time.  If the
16    Authority makes a positive determination of  eligibility  for
17    any   comprehensive   plan  or  project,  or  combination  of
18    comprehensive plans or projects, for  any  municipality,  the
19    Authority shall make available sufficient funds in subsequent
20    years  necessary  to  complete those plans or projects, or to
21    complete that portion  of  the  plan  or  project  originally
22    agreed  to  be  funded  through  the  Authority,  from  funds
23    received  by  the  Authority  in  subsequent  years.   If the
24    comprehensive plan or project is determined by the  Authority
25    not  to  be an eligible plan or project, the municipality may
26    submit  any  other  comprehensive  plan  or  project  for   a
27    determination  of eligibility.  If, however, the municipality
28    fails to receive a positive determination of eligibility  for
29    any   comprehensive   plan  or  project,  or  combination  of
30    comprehensive plans or projects, sufficient  to  exhaust  the
31    total  allocation  to  that  municipality for any year before
32    April 30 of the following year for which the  allocation  was
33    made, the allocation to that municipality for that year shall
34    cease,  and the Authority may apply those excess funds to any
 
                            -38-               LRB9105433LDmb
 1    other comprehensive plan or project in any other municipality
 2    in the Depressed Areas whose comprehensive  plan  or  project
 3    has  received  a positive determination of eligibility by the
 4    Authority.
 5        (h)  Commencing with the first year in which  a  licensee
 6    incurs  a  tax  obligation  under  this  Section, and for the
 7    period of 2 years thereafter, 100% of  the  proceeds  of  all
 8    bonds  purchased  by  a  licensee from the Authority that are
 9    devoted to the financing of projects in Depressed Areas shall
10    be  used   exclusively   to   finance   the   rehabilitation,
11    development,  or  construction  of,  or  to  provide mortgage
12    financing of, housing facilities in the Depressed  Areas  for
13    persons  or families of low through middle income, as defined
14    in this Section.  For  the  purposes  of  this  Section,  the
15    "rehabilitation,  development,  or  construction  of  housing
16    facilities"    includes   expenses   attributable   to   site
17    preparation,  infrastructure   needs,   and   housing-related
18    community   facilities  and  services,  including  supporting
19    commercial development.  Commencing with the fourth  year  in
20    which   a   licensee  incurs  a  tax  obligation  under  this
21    subsection, 50% of the proceeds of all bonds purchased  by  a
22    licensee from the Authority that are devoted to the financing
23    of  projects  in Depressed Areas shall be used exclusively to
24    finance the rehabilitation, development, or  construction  of
25    housing  facilities  in  the  Depressed  Areas for persons or
26    families of low through middle income.  Commencing  with  the
27    eleventh  year  in  which  a licensee incurs a tax obligation
28    under this Section,  50%  of  the  annual  aggregate  of  the
29    proceeds  of bonds purchased by a licensee from the Authority
30    that are devoted to the financing of projects and investments
31    in approved eligible projects commenced by a  licensee  shall
32    be   used   exclusively   to   finance   the  rehabilitation,
33    development, or  construction  of,  or  to  provide  mortgage
34    financing  of,  housing facilities in the Depressed Areas for
 
                            -39-               LRB9105433LDmb
 1    persons or families of low through middle income.
 2        (i)  The General Assembly finds that it is  necessary  to
 3    provide  for a balanced community and develop a comprehensive
 4    housing program.  The Authority shall determine the need  for
 5    housing  in  the  Depressed  Areas  in  consultation with the
 6    municipalities in the Depressed Areas.   This  shall  include
 7    determining   the   types   and  classes  of  housing  to  be
 8    constructed and the number of units of each type and class of
 9    housing to be built.  The Authority shall  give  priority  to
10    the  housing needs of the persons and their families residing
11    in the Depressed Areas in 1997 and continuing their residency
12    through the effective date of this amendatory  Act  of  1999.
13    The   actual   percentage   of  the  proceeds  of  bonds  and
14    investments in approved  eligible  projects  commenced  by  a
15    licensee  which  shall  be  used  exclusively  to finance the
16    rehabilitation,  development,  or  construction  of,  or   to
17    provide  mortgage  financing  of,  housing  facilities in the
18    Depressed  Areas  shall  be  based   upon   the   Authority's
19    determination of the need for housing in the Depressed Areas.
20    Once  the  housing  needs  of  the  persons  residing  in the
21    Depressed  Areas  in  1997  and  continuing  their  residency
22    through the effective date of this  amendatory  Act  of  1999
23    have  been  met, as determined by the Authority, any required
24    percentages for such housing in the Depressed Areas  may,  in
25    its  sole discretion, be waived by the Authority.  To aid the
26    Authority in making these determinations, the Authority shall
27    review the proposal for a housing redevelopment  program  and
28    strategy  approved  and adopted by the Gaming Board and shall
29    give priority to it and any other plan  or  project  that  is
30    consistent   with  the  standards  of  this  Section  and  is
31    acceptable to the Authority.   The  Authority  may  determine
32    whether  the  funds  used  to  finance housing facilities for
33    persons or families  of  low,  moderate,  median  range,  and
34    middle   income  are  derived  from  the  proceeds  of  bonds
 
                            -40-               LRB9105433LDmb
 1    purchased by a licensee from the Authority to be  devoted  to
 2    the financing of projects in the Depressed Areas, investments
 3    in approved eligible projects commenced by the licensee, or a
 4    combination  of  both.   Any investment made by a licensee in
 5    excess of 100% of its eligible investment tax  credit  during
 6    the  first  3 years and in excess of 50% thereafter in either
 7    the purchase of  bonds  or  direct  investments  in  approved
 8    eligible projects for low, moderate, median range, and middle
 9    income  family  housing facilities in the Depressed Areas may
10    be  carried  forward  and  credited  against  the  licensee's
11    obligation to make a 100% investment during the first 3 years
12    and 50% thereafter in low, moderate, median range, and middle
13    income family housing in any future year, with  the  approval
14    of  the  Authority.   For  the purposes of this Section, "low
15    income families" means families whose income does not  exceed
16    50%  of  the  median income of the area, with adjustments for
17    smaller and  larger  families.   "Moderate  income  families"
18    means  families  whose  income does not exceed 80% and is not
19    less than 50%  of  the  median  income  for  the  area,  with
20    adjustments  for  smaller and larger families.  "Median range
21    income families" means families whose income does not  exceed
22    120%  and  is  not less than 80% of the median income for the
23    area, with  adjustments  for  smaller  and  larger  families.
24    "Middle income families" means families whose income does not
25    exceed  150%  and  is not less than 120% of the median income
26    for  the  area,  with  adjustments  for  smaller  and  larger
27    families.  "Median income" means an income defined as  median
28    within the appropriate Standard Metropolitan Statistical Area
29    by   the  United  States  Department  of  Housing  and  Urban
30    Development. To achieve a balanced community,  the  Authority
31    shall  ensure that the development of housing for families of
32    low and moderate income shall proceed at  the  same  time  as
33    housing for families of median range and middle income, until
34    there  is  no  longer  a  need  for  such  facilities  in the
 
                            -41-               LRB9105433LDmb
 1    Depressed Areas, as determined by the Authority.
 2        (j)  Nothing  shall  be  implemented  or  waived  by  the
 3    Authority  which  would  reduce,  impair,  or   prevent   the
 4    fulfillment  of  the  priorities established and contained in
 5    this amendatory Act of 1999.
 6        (k)  If a licensee receives the  prior  approval  of  the
 7    Authority,  the  licensee  may  make  eligible investments in
 8    excess of the investments necessary to receive a  tax  credit
 9    against  the  investment alternative tax for a given calendar
10    year,  and  the  licensee  may  carry  forward  this   excess
11    investment  and  have  it  credited  to  its  next investment
12    alternative tax obligation.  If  the  Authority  approves  of
13    this excess investment and approves the carry forward of this
14    excess investment, and a licensee elects to purchase bonds of
15    the   Authority  or  makes  direct  investments  in  approved
16    eligible projects in excess of the investments  necessary  to
17    receive  a  tax credit against the investment alternative tax
18    for its current obligation, the licensee shall be entitled to
19    a reduction of the amount of investments necessary in  future
20    years,  which  amount  shall  be  determined  annually by the
21    Authority, taking into account a current market discount rate
22    from the date of the purchase or investment to the  date  the
23    purchase or investment would have been required to be made.
24        (l)  Each  licensee  shall  prepare  and  file, in a form
25    prescribed by the Authority, an annual return reporting  that
26    financial  information  as  shall  be deemed necessary by the
27    Authority to carry out the provisions of this amendatory  Act
28    of  1999.   This return shall be filed with the Authority and
29    the Gaming Board on or before April 30 following the calendar
30    year on which the return is based.  The  Gaming  Board  shall
31    verify  to  the  Authority  the  information contained in the
32    report, to the fullest  extent  possible.   Nothing  in  this
33    subsection shall be deemed to affect the due dates for making
34    any investment or paying any tax under this Section.
 
                            -42-               LRB9105433LDmb
 1        (m)  Any  purchase  by  a  licensee of bonds issued by or
 2    offered through  the  Authority  and  all  approved  eligible
 3    investments   made   by  a  licensee  are  to  be  considered
 4    investments and not taxes owed or grants to the State or  any
 5    political  subdivision.   As  such, a licensee shall have the
 6    possibility of the return of principal and a  return  on  the
 7    capital invested as with other investments.  Investors in the
 8    bonds  issued  by  or  offered through the Authority shall be
 9    provided with an opinion from a recognized  financial  rating
10    agency  or  a  financial advisory firm with national standing
11    that each loan of bond proceeds  by  the  Authority  has  the
12    minimum characteristics of an investment, in that a degree of
13    assurance  exists that interest and principal payments can be
14    made and other terms of the proposed investment be maintained
15    over the period of the investment, and that the loan  of  the
16    bond  proceeds  would  qualify  for  a  bond rating of "C" or
17    better.  If an opinion cannot be obtained from  a  recognized
18    financial  rating  agency  or  a financial advisory firm with
19    national standing, an  opinion  shall  be  obtained  from  an
20    expert financial analyst with national standing, selected and
21    hired  by  the  Authority.   In  order  to achieve a balanced
22    portfolio, assure the viability  of  the  Authority  and  the
23    projects,  facilities,  and  programs  undertaken  under this
24    amendatory Act of  1999,  no  more  than  25%  of  the  total
25    investments  made  by  or  through  the  Authority  with  the
26    proceeds of bonds generated in each year shall be investments
27    which  would  qualify  for  a  bond rating of "C", unless all
28    holders of obligations in each year agree to  waive  the  25%
29    limit  for  that  year.    Nothing  in  this Section shall be
30    interpreted as limiting the Authority from taking  any  steps
31    it  deems  appropriate  to protect the characteristics of its
32    investment in projects or  any  other  investments  from  not
33    being  real  investments  with  a  prospect for the return of
34    principal and a return on the capital invested.   Nothing  in
 
                            -43-               LRB9105433LDmb
 1    this  Section shall be considered a guarantee by the State or
 2    any political subdivision  of  any  return  of  principal  or
 3    interest, but any purchase by a licensee of bonds or approved
 4    eligible  investments  made  by a licensee under this Section
 5    shall be at the risk of the licensee.  A licensee  purchasing
 6    an  issue  of bonds issued by the Authority in any given year
 7    may  arrange,  at  its  option,  for  those  bonds   or   the
 8    investments,  made  by  or  through  the  Authority  with the
 9    proceeds of those bonds  to  be  insured.  The  cost  of  any
10    insurance  purchased  by  a  licensee  shall  be  paid by the
11    licensee desiring the insurance.
12        (n)  The Authority shall adopt rules necessary  to  carry
13    out the purposes of this Section.
14        (o)  The  obligation  of  a licensee to pay an investment
15    alternative tax under this Section shall end 25  years  after
16    any  investment  alternative tax obligation is first incurred
17    by  the  licensee,  unless  extended  in  connection  with  a
18    deferral granted by the Authority under this Section.

19        (230 ILCS 10/23) (from Ch. 120, par. 2423)
20        Sec. 23.   The  State  Gaming  Fund.   On  or  after  the
21    effective  date  of  this  Act,  all  of  the  fees and taxes
22    collected pursuant to subsections of  this  Act,  except  tax
23    revenue   collected   pursuant  to  Section  13.2,  shall  be
24    deposited into the State Gaming Fund, a special fund  in  the
25    State Treasury, which is hereby created.  Fines and penalties
26    collected  pursuant  to  this Act shall be deposited into the
27    Education Assistance Fund, created by Public Act 86-0018,  of
28    the State of Illinois.
29    (Source: P.A. 86-1029.)

30        Section 999.  Effective date.  This Act takes effect upon
31    becoming law.

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