Public Act 93-0227

HB3488 Enrolled                      LRB093 08181 BDD 08388 b

    AN ACT concerning sports facilities.

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

    Section  1.  Short  title.  This  Act may be cited as the
Downstate Illinois Sports Facilities Authority Act.

    Section 5. Definitions. In this Act:
    "Assistance Agreement" means one or more legally  binding
contracts, with respect to a facility for which the Authority
is  to  provide financial assistance as provided in this Act,
to which the Authority and a governmental owner of a facility
or its tenant, or both, and any other appropriate persons are
parties, which may be in the  form  of  an  intergovernmental
agreement.
    "Authority"   means   the   Downstate   Illinois   Sports
Facilities Authority.
    "Facility" means any of the following:
         (1)  Stadiums,  arenas,  or other structures for the
    holding  of  athletic  contests  or   events,   including
    baseball,   football,   hockey,  and  automobile  racing;
    musical, dramatic, and other artistic or  social  events,
    or public meetings and other public events.
         (2)  Practice   fields,   or   other   areas   where
    professional,  amateur, or semi-professional sports teams
    may practice or perform.
    "Facility" also means the following types of property  if
that  property  is  directly  related  to  an  item listed in
paragraphs (1) or (2) of this definition:
              (i)  Offices,   parking   lots   and   garages,
         landscaping   and   open   spaces,   access   roads,
         transportation facilities, restaurants, and stores.
              (ii)  Other recreation areas.
              (iii)  Other property or structures,  including
         all   fixtures,   furnishings,   and   appurtenances
         normally associated with such facilities.
    "Financial  Assistance"  means  the use by the Authority,
pursuant to an assistance agreement, of its powers under  the
Act,  including,  without  limitation,  the  power  to borrow
money, to issue bonds and notes,  to  assist  a  governmental
owner  or  its  tenants,  or  both,  with  one or more of the
following: designing, developing, establishing, constructing,
erecting, acquiring, repairing,  reconstructing,  renovating,
remodeling,   adding  to,  extending,  improving,  equipping,
operating, and maintaining a facility owned or  be  owned  by
the governmental owner.
    "Governmental   Owner"   means  a  body  politic,  public
corporation, political subdivision, unit of local government,
or municipality  formed  under  the  laws  of  the  State  of
Illinois that owns or is to own a facility located within the
corporate  limits of the Authority described in Section 50 of
this Act  and  to  which  the  Authority  provides  financial
assistance.
    "Loan agreement" means a legally binding contract between
the  Authority  and an owner of a facility, pursuant to which
the Authority agrees to make  loans  to  the  owner  for  the
purpose of (i) constructing, acquiring, operating, repairing,
rehabilitating,  or managing a facility and the site on which
a facility is or is to be located,  which  facility  or  site
must  be located in the State of Illinois, excluding the City
of Chicago, and (ii) infrastructure improvements  related  to
the facility.
    "Management  Agreement"  means a legally binding contract
between the Authority and a tenant of a facility owned by the
Authority, which contains at least the following provisions:
         (A)  a provision requiring the tenant to conduct its
    complete  regular  home  season  schedule  and  any  home
    playoff events in the facility;
         (B)  a provision requiring  the  tenant  to  provide
    routine  maintenance  of and to operate the facility with
    its personnel or contractors;
         (C)  a provision requiring the tenant  to  advertise
    and promote events it conducts at the facility;
         (D)  a  provision requiring the tenant to operate or
    contract for concessions for the patrons of the facility;
    and
         (E)  a provision permitting  the  Authority  or  its
    designee  to hold other events in any such facility owned
    by the Authority at such times as shall not  unreasonably
    interfere with the use of that facility by the tenant.
    "Tenant" means any person with which a governmental owner
or the Authority has entered into an agreement for the use by
a  sports  team  of  any facility. Such an agreement may be a
management agreement or an assistance agreement or may  be  a
lease  of  or  a  license,  permit  or similar agreement with
respect to the use of a facility by such team for such period
as shall be agreed upon by the person  and  the  governmental
owner or the Authority, as the case may be.

    Section  10.  Legislative  finding  and  declaration. The
General Assembly finds that  as  a  result  of  deteriorating
infrastructure  and  sports facilities there is a shortage of
sports facilities suitable for use by professional,  amateur,
or   semi-professional   sports   teams  and  other  musical,
theatrical, and other social organizations.
    It is further found that as a  result  of  the  costs  to
repair or replace the infrastructure and facilities, and as a
result  of  current  financing  costs,  the  private  sector,
without the assistance contemplated in this Act, is unable to
construct feasibly adequate sports facilities.
    It  is  further  found that the creation of modern sports
facilities and the other results  contemplated  by  this  Act
would  stimulate  economic activity in the State of Illinois,
including the creation and maintenance of jobs, the  creation
of new and lasting infrastructure and other improvements, and
the   retention  of  sports  and  entertainment  events  that
generate economic activity.
    It is further found that sports facilities can be magnets
for substantial interstate  tourism  resulting  in  increased
retail  sales,  hotel and restaurant sales, and entertainment
industry sales, all  of  which  increase  jobs  and  economic
growth.

    Section 15. Authority and Board created.
    (a)  The  Downstate  Illinois Sports Facilities Authority
is  created  as  a  political  subdivision,  unit  of   local
government, body politic, and municipal corporation.
    (b)  The  governing  and  administrative  powers  of  the
Authority  shall  be  vested in a body known as the Downstate
Illinois Sports Facilities Authority Board.  The Board  shall
consist  of  8 members: a Chair and 7 additional members, all
of whom are appointed by the Governor.
    All  gubernatorial  appointments,  including  the  Chair,
shall be subject to the advice and  consent  of  the  Senate,
except  in  the case of temporary appointments as provided in
Section 20. No member shall be employed by the State  or  any
political  subdivision  of  the State or by any department or
agency of the State  or  any  political  subdivision  of  the
State.

    Section 20. Terms of appointments.
    (a)  On the effective date of this Act:
         (1)  The  Governor  shall  appoint  the  Chair and 3
    other members of the Board  for  initial  terms  expiring
    June 30 of 2007.
         (2)  The  Governor  shall  appoint  2 members of the
    Board for initial terms expiring June 30 of 2006.
         (3)  The Governor shall appoint  2  members  of  the
    Board for initial terms expiring June 30 of 2005.
    (b)  At   the  expiration  of  the  term  of  any  member
appointed by the Governor, the  Governor  shall  appoint  the
member's successor in the same manner as appointments for the
initial  terms.   All successors shall hold office for a term
of 3 years from the first day of July of the  year  in  which
they  are  appointed, except in the case of an appointment to
fill a vacancy. Each member, including the Chair, shall  hold
office  until  the  expiration of the member's term and until
the member's successor is appointed and qualified.    Nothing
shall  preclude  a member or a Chair from serving consecutive
terms.
    (c)  Vacancies for members and for  the  Chair  shall  be
filled  in  the  same manner as original appointments for the
balance of the unexpired term.

    Section 25.  Actions of the Authority.
    (a)  Six members of the Authority constitute a quorum for
the purpose of conducting business.  Actions of the Authority
must receive the affirmative vote of at least 6 members.  The
Authority  shall  determine  the  times  and  places  of  its
meetings.  The members of the Authority shall  serve  without
compensation  for  service  as  a  member but are entitled to
reimbursement  of  reasonable  expenses   incurred   in   the
performance of their official duties.
    (b)  The Authority shall annually elect a secretary and a
treasurer.
    (c)  An  executive  committee  appointed  by the Governor
made up of 4 members, including the Chair, have the authority
to operate the Authority on  a  day-to-day  basis,  with  the
powers and duties determined by the bylaws of the Authority.
    Section  30.   Executive  Director.   The Authority shall
appoint an Executive Director, who  is  the  chief  executive
officer  of  the  Authority.  In addition to any other duties
set forth in this Act, the Executive Director  shall  do  the
following:
         (1)  Direct and supervise the administrative affairs
    and  activities  of the Authority, in accordance with its
    rules, regulations, and policies.
         (2)  Attend meetings of the Authority.
         (3)  Keep  minutes  of  all   proceedings   of   the
    Authority.
         (4)  Approve  all  accounts  for  salaries, per diem
    payments, and allowable expenses of the Authority and its
    employees  and  consultants  and  approve  all   expenses
    incidental to the operation of the Authority.
         (5)  Report   and   make   recommendations   to  the
    Authority on  the  merits  and  status  of  any  proposed
    facility.
         (6)  Perform  any  other  duty  that  the  Authority
    requires for carrying out the provisions of this Act.

    Section 35. Powers.
    (a)  In  addition  to  the  powers set forth elsewhere in
this Act, the Authority may do the following:
         (1)  Adopt and alter an official seal.
         (2)  Sue and be sued, plead and be impleaded, all in
    its own name, and agree to  binding  arbitration  of  any
    dispute to which it is a party.
         (3)  Adopt  bylaws,  rules, and regulations to carry
    out the provisions of this Act.
         (4)  Maintain an office or offices at the place  the
    Authority may designate.
         (5)  Employ,   either   as   regular   employees  or
    independent    contractors,    consultants,    engineers,
    architects, accountants,  attorneys,  financial  experts,
    construction   experts  and  personnel,  superintendents,
    managers and other professional personnel, and such other
    personnel as may be necessary  in  the  judgment  of  the
    Authority, and fix their compensation.
         (6)  Acquire,  hold,  lease  as lessor or as lessee,
    use, encumber, transfer, or dispose of real and  personal
    property,  including  the  alteration of or demolition of
    improvements to real estate.
         (7)  Enter into contracts of any kind.
         (8)  Enter into one or more loan agreements with  an
    owner  of  a facility that conform to the requirements of
    this Act and that may contain provisions as the Authority
    shall determine, including, without limit: (i) provisions
    granting the owner the right and  option  to  extend  the
    term  of  the loan agreement; (ii) provisions creating an
    assignment and pledge by the Authority of certain of  the
    Authority's  revenues  and  receipts to be received under
    this Act for the benefit of the owner of the facility  as
    further  security for performance by the Authority of its
    obligations  under  the   loan   agreement;   and   (iii)
    provisions requiring the establishment of reserves by the
    Authority  or  by the owner, or both, as further security
    for the performance of their respective obligations under
    the loan agreement.
         (9)  Borrow money from any  source  for  any  lawful
    purpose,  including  working  capital for its operations,
    reserve funds, or interest, and to  mortgage,  pledge  or
    otherwise encumber the property or funds of the Authority
    and to contract with or engage the services of any person
    in  connection  with  any  financing, including financial
    institutions, issuers of letters of credit,  or  insurers
    and  enter into reimbursement agreements with this person
    which may be secured as if money were borrowed  from  the
    person.
         (10)  Receive  and accept from any private or public
    source, contributions,  gifts,  or  grants  of  money  or
    property.
         (11)  Make  loans  from  proceeds or funds otherwise
    available to  the  extent  necessary  or  appropriate  to
    accomplish the purposes of the Authority.
         (12)  Provide  for  the  insurance  of any property,
    operations,  officers,  agents,  or  employees   of   the
    Authority  against any risk or hazard and provide for the
    indemnification of its members,  employees,  contractors,
    or agents against any and all risks.
         (13)  Provide relocation assistance and compensation
    for  landowners  and  their lessees displaced by any land
    acquisition of the Authority, including  the  acquisition
    of  land  and construction of replacement housing thereon
    as the Authority shall determine.
         (14)  Exercise  all  the  corporate  powers  granted
    Illinois corporations under the Business Corporation  Act
    of   1983,   except   to   the  extent  that  powers  are
    inconsistent with those of a body politic  and  corporate
    of the State.
         (15)  Determine  the  locations of, develop, design,
    establish,  construct,  erect,  acquire,   own,   repair,
    reconstruct,  renovate, remodel, add to, extend, improve,
    equip, operate,  regulate  and  maintain  facilities  and
    provide  financial  assistance  to governmental owners or
    their  tenants  or  both,  pursuant  to   an   assistance
    agreement to do the foregoing, in each case to the extent
    necessary to accomplish the purposes of the Authority.
         (16)  Regulate  the  use and operation of facilities
    that are developed under the provisions of this Act.
         (17)  Enter into one or more  management  agreements
    which  conform  to the requirements of this Act and which
    may  contain  such  provisions  as  the  Authority  shall
    determine, including, without limitation  (i)  provisions
    allocating  receipts from rents, rates, fees, and charges
    for use of the  facility  or  for  services  rendered  in
    connection  with  the  facility between the Authority and
    the tenant of the facility; (ii) provisions providing for
    or limiting payments to the  Authority  for  use  of  the
    facility  based  on  levels of attendance or receipts, or
    both  attendance  and  receipts,  of  the   tenant   from
    admission   charges,  parking  concessions,  advertising,
    radio and television, and other sources; (iii) provisions
    obligating the Authority to make payments to  the  tenant
    with  respect  to  expenses  of  routine  maintenance and
    operation of any facility and operating expenses  of  the
    tenant   with  respect  to  use  of  the  facility;  (iv)
    provisions requiring  the  Authority  to  pay  liquidated
    damages to the tenant for failure of timely completion of
    construction   of   any   new  facility;  (v)  provisions
    permitting the Authority to grant rent-free occupancy  of
    an  existing  facility pending completion of construction
    of any new facility and requiring the  Authority  to  pay
    certain   incremental   costs   of  maintenance,  repair,
    replacement, and operation of an existing facility in the
    event of failure of timely completion of construction  of
    any new facility; (vi) provisions requiring the Authority
    to reimburse the tenant for certain State and local taxes
    and  provisions permitting reductions of payments due the
    Authority by the tenant or reimbursement of the tenant by
    the Authority in the event of imposition of  certain  new
    State  and  local  taxes, or the increase above specified
    levels of certain existing  State  and  local  taxes,  or
    both;   (vii)  provisions  obligating  the  Authority  to
    purchase tickets to events conducted by the tenant  based
    upon   specified  attendance  levels;  (viii)  provisions
    granting the tenant the right and option  to  extend  the
    term  of  the  management  agreement; and (ix) provisions
    requiring the establishment of reserves by the  Authority
    or  by  the  tenant, or both, as further security for the
    performance of their  respective  obligations  under  the
    management agreement.
         (18)  Enter  into  one or more assistance agreements
    that conform to the requirements of this Act and that may
    contain such provisions as the Authority shall  determine
    establishing  the rights and obligations of the Authority
    and the governmental owner or a  tenant,  or  both,  with
    respect  to  the  facility  for which the Authority is to
    provide financial assistance.
         (19)  Issue bonds or notes under Section 100 of this
    Act.
         (20)  Sell, convey, lease,  or  grant  a  permit  or
license  with  respect  to, or by agreement authorize another
person on its behalf to sell, convey, lease or grant a permit
or license with respect to (i) the right to use or the  right
to  purchase  tickets  to  use, or any other interest in, any
seat or area within a facility; (ii) the  right  to  name  or
place  advertising in all or any part of a facility; or (iii)
any   intangible   personal   property   rights,    including
intellectual  property  rights,  appurtenant to any facility,
the proceeds of which are used for the  purpose  of  carrying
out the powers granted by the Act.
         (21)  Do all things necessary or convenient to carry
    out the powers granted by this Act.
    (b)  The  Authority  may  not  construct  or enter into a
contract to construct more than one new stadium facility  and
may  not  enter  into assistance agreements providing for the
reconstruction,   renovation,   remodeling,   extension,   or
improvement of all or substantially  all  of  more  than  one
existing facility unless authorized by law.
    (c)  The  Authority may adopt such rules as are necessary
to carry out those powers conferred and perform those  duties
required by this Act.

    Section 40. Duties.
    (a)  In  addition  to  the  powers set forth elsewhere in
this Act, subject to the terms of  any  agreements  with  the
holders  of  the  Authority's  evidences of indebtedness, the
Authority shall do the following:
         (1)  Comply with all zoning, building, and land  use
    controls  of the municipality within which is located any
    stadium facility owned by the Authority or for which  the
    Authority provides financial assistance.
         (2)  Enter  into a loan agreement with an owner of a
    facility  to  finance  the   acquisition,   construction,
    maintenance,  or  rehabilitation  of  the  facility.  The
    agreement   shall   contain  appropriate  and  reasonable
    provisions with  respect  to  termination,  default,  and
    legal remedies.  The loan may be at below-market interest
    rates.
         (3)  Create  and  maintain  a  financial reserve for
    repair and replacement of capital assets.
    (b)  In a loan agreement for the construction  of  a  new
facility,  in  connection  with  prequalification  of general
contractors for construction of the facility,  the  Authority
shall   require  that  the  owner  of  the  facility  require
submission  of  a  commitment  detailing  how   the   general
contractor will expend 25% or more of the dollar value of the
general   contract   with   one  or  more  minority  business
enterprises and 5% or more of the dollar value  with  one  or
more  female business enterprises. This commitment may be met
by contractor's status as a minority business  enterprise  or
female  business  enterprise,  by  a  joint  venture,  or  by
subcontracting  a  portion  of the work with or by purchasing
materials for the work from one or more such enterprises,  or
by  any  combination  thereof.  Any contract with the general
contractor for construction of the new facility shall require
the general contractor to meet the foregoing obligations  and
shall require monthly reporting to the Authority with respect
to  the  status  of  the  implementation  of the contractor's
affirmative action plan and compliance with that  plan.  This
report   shall  be  filed  with  the  General  Assembly.  The
Authority shall require that the facility owner establish and
maintain an affirmative action program  designed  to  promote
equal employment opportunity and that specifies the goals and
methods  for increasing participation by minorities and women
in a representative mix of job  classifications  required  to
perform  the respective contracts. The Authority shall file a
report before March 1 of each year with the General  Assembly
detailing  its  implementation  of this subsection. The terms
"minority   business   enterprise"   and   "female   business
enterprise"  have  the  meanings  provided  in  the  Business
Enterprise  for  Minorities,  Females,   and   Persons   with
Disabilities Act.
    (c)  With  respect  to a facility owned or to be owned by
the Authority,  enter  or  have  entered  into  a  management
agreement  with  a  tenant  of  the  Authority to operate the
facility that requires the tenant to operate the facility for
a period at least as long as the term of any bonds issued  to
finance   the   development,   establishment,   construction,
erection,  acquisition,  repair,  reconstruction, remodeling,
adding to, extension, improvement, equipping, operation,  and
maintenance  of  the  facility.  Such agreement shall contain
appropriate  and  reasonable  provisions  with   respect   to
termination, default, and legal remedies.

    Section 45. Reporting. Promptly following entering into a
management  agreement,  an  assistance  agreement,  or a loan
agreement involving a new  facility  or  facility  site,  the
Authority shall submit a detailed written report and findings
of  the  Authority  with  respect  to the proposed management
agreement, assistance agreement, or  loan  agreement  to  the
General Assembly.
    The  report  and  findings of the Authority shall include
the following:
         (A)  A detailed plan of the method  of  funding  the
    management   agreement,  assistance  agreement,  or  loan
    agreement;
         (B)  An evaluation of the economic  consequences  of
    the  proposed management agreement, assistance agreement,
    or loan agreement; and
         (C)  If applicable, an analysis of the  reasons  for
    acquiring a site for constructing a new facility.

    Section  50. Territory. The territory of the Authority is
coterminous with the boundaries of  the  State  of  Illinois,
excluding the City of Chicago.

    Section  55.  Acquisition  of property. The Authority may
acquire in its own name, by gift or  purchase,  any  real  or
personal property, or interests in real or personal property,
necessary  or convenient to carry out its corporate purposes.
The Authority may not acquire property by eminent domain.

    Section 60. Tax exemption.
    (a)  Neither the Authority nor any governmental owner  of
a  facility  or  that  governmental  owner's  tenant shall be
required to pay property taxes on any facility, nor shall the
interest of a tenant in any  facility  either  owned  by  the
Authority  or  owned  by  any governmental owner to which the
Authority has provided financial  assistance  be  subject  to
property taxes.
    (b)  Bonds  issued  by the Authority, their transfer, the
interest payable on them, and any income  derived  from  them
shall  be  exempt  from  income taxes or from taxation by any
political subdivisions,  municipal  corporations,  or  public
agencies  of  any kind of this State. For purposes of Section
250 of the Illinois Income Tax  Act,  the  exemption  of  the
income  from  bonds  issued  by the Authority shall terminate
after all of the bonds have been paid.  The  amount  of  such
income  that  shall  be  added  and  then  subtracted  on the
Illinois income tax return of a taxpayer, pursuant to Section
203 of the Illinois Income Tax  Act,  from  federal  adjusted
gross  income or federal taxable income in computing Illinois
base income shall be the interest net  of  any  bond  premium
amortization.

    Section 65. Conflicts of interest; generally.
    (a)  No  members  or  employees of the Authority shall be
employed by, be an  officer  or  director  of,  or  have  any
ownership  interest  in  any  corporation or entity that is a
party to a loan agreement with the Authority under this Act.
    (b)  No moneys of the Authority shall be deposited in any
financial institution in  which  any  officer,  director,  or
holder of a substantial proprietary interest is also a member
or employee of the Authority.
    (c)  No  real estate to which a member or employee of the
Authority holds legal title or in which such a person has any
beneficial interest, including any interest in a land  trust,
shall  be  purchased  by  the  Authority,  nor shall any such
property be purchased  by  a  corporation  or  entity  for  a
facility  to  be  financed  under  this Act. Every member and
employee of  the  Authority  shall  file  annually  with  the
Authority  a record of all real estate in this State to which
the person holds legal title or in which the person  has  any
beneficial  interest, including any interest in a land trust.
In the event it is later  disclosed  that  the  Authority  or
other  entity  has purchased real estate in which a member or
employee had an interest, the purchase shall be  voidable  by
the  Authority  and  the member or employee involved shall be
disqualified  from  membership  in  or  employment   by   the
Authority.

    Section 70. Conflicts of interest; contracts.
    (a)  No  member  of  the  Authority or officer, agent, or
employee of the Authority shall, in his or her own name or in
the name of a nominee, be an officer or director of  or  hold
an  ownership  interest  of  more  than  7.5%  in any person,
association, trust, corporation, partnership, or other entity
that is, in its own name or in the name of a nominee, a party
to a contract or agreement upon which the member or  officer,
agent, or employee may be called upon to act or vote.
    (b)  With respect to any direct or any indirect interest,
other  than  an  interest  prohibited in subsection (a), in a
contract or agreement  upon  which  the  member  or  officer,
agent,  or  employee  may  be  called  upon to act or vote, a
member of the Authority or officer, agent, or employee of the
Authority shall disclose the same to  the  secretary  of  the
Authority  before the taking of final action by the Authority
concerning the contract or agreement and  shall  so  disclose
the  nature  and  extent  of  such  interest  and  his or her
acquisition thereof,  which  disclosures  shall  be  publicly
acknowledged by the Authority and entered upon the minutes of
the  Authority.   If  a  member  of the Authority or officer,
agent, or employee of the Authority holds such  an  interest,
then  he  or  she  shall  refrain  from  any further official
involvement in regard to  the  contract  or  agreement,  from
voting on any matter pertaining to the contract or agreement,
and from communicating with other members of the Authority or
its  officers,  agents, and employees concerning the contract
or agreement. Notwithstanding any other provision of law, any
contract or agreement entered into in  conformity  with  this
subsection  (b) shall not be void or invalid by reason of the
interest described in this subsection, nor shall  any  person
so  disclosing  the  interest  and  refraining  from  further
official involvement as provided in this subsection be guilty
of  an  offense, be removed from office, or be subject to any
other penalty on account of such interest.
    (c)  Any contract  or  agreement  made  in  violation  of
subsection  (a) or (b) of this Section shall be null and void
and give rise to no action against the Authority.

    Section 75. Records and reports  of  the  Authority.  The
secretary  shall  keep  a  record  of  the proceedings of the
Authority. The treasurer of the Authority shall be  custodian
of  all Authority funds and shall be bonded in the amount the
other members of the Authority may  designate.  The  accounts
and  books of the Authority shall be set up and maintained in
a manner approved by the Auditor General, and  the  Authority
shall file with the Auditor General a certified annual report
within  120  days  after  the  close  of its fiscal year. The
Authority shall also file with the Governor, the Secretary of
the Senate, the Clerk of the House  of  Representatives,  and
the  Illinois  Economic  and Fiscal Commission, by March 1 of
each year, a written report covering its activities  for  the
previous  fiscal year. So filed, the report shall be a public
record  and  open  for  inspection  at  the  offices  of  the
Authority during normal business hours.

    Section 85. No impairment of loan agreement.   The  State
of  Illinois  pledges  to  and agrees with any facility owner
under any loan agreement entered into by the  Authority  with
respect  to a facility that the State will not limit or alter
the rights and powers vested in the Authority by this Act  so
as  to  impair  the terms of the loan agreement or in any way
impair the rights and remedies of the owner so  long  as  the
owner  is  not  in  default  under  the  loan  agreement.  In
addition, the State pledges to and agrees with the owner that
the State will not limit the basis on which State  funds  are
to be allocated, deposited, and paid to the Authority, or the
use  of  those  funds,  so as to impair the terms of any such
loan agreement. The Authority is authorized to  include  this
pledge and agreement of the State in the loan agreement.

    Section   90.   Volume  cap.  Notwithstanding  any  other
provision of law, the Governor may allocate  any  volume  cap
available  to  the  State  or  any  of its agencies under the
Internal Revenue Code of 1986, including any amounts  carried
forward  by  the State or any of its agencies with respect to
stadiums,  to  the  Downstate  Illinois   Sports   Facilities
Authority,  and  the  Authority  may carry forward any amount
allocated to it by the Governor or by any home rule unit.

    Section 100. Bonds and notes.
    (a) (1)  The Authority may at any time and from  time  to
time  issue  bonds  and  notes  for  any  corporate  purpose,
including  the  establishment  of reserves and the payment of
interest and costs of issuance. In this Act the term  "bonds"
includes  notes  of any kind, interim certificates, refunding
bonds or any other evidence of obligation for borrowed  money
issued  under this Section 100. Bonds may be issued in one or
more series and may be payable and secured either on a parity
with or separately from other bonds.
         (2)  The bonds of any issue shall be payable  solely
    from  all  or any part of the property or revenues of the
    Authority, including, without limitation:
              (i)  Rents,  rates,  fees,  charges,  or  other
         revenues  payable  to  or  any   receipts   of   the
         Authority,  including  amounts  which  are deposited
         pursuant to the Act with a trustee for bondholders;
              (ii)  Payments   by   financial   institutions,
         insurance companies, or others pursuant  to  letters
         or  lines  of  credit,  policies  of  insurance,  or
         purchase agreements;
              (iii)  Investment   earnings   from   funds  or
         accounts maintained pursuant to a bond resolution or
         trust agreement; and
              (iv)  Proceeds of refunding bonds.
         (3)  Bonds may be authorized by a resolution of  the
    Authority  and may be secured by a trust agreement by and
    between  the  Authority  and  a  corporate   trustee   or
    trustees,  which  may be any trust company or bank having
    the powers of a  trust  company  within  or  without  the
    State. Bonds may:
              (i)  Mature  at  a  time  or  times, whether as
         serial  bonds,  as  term  bonds,  or  as  both,  not
         exceeding 40 years from their  respective  dates  of
         issue;
              (ii)  Notwithstanding  the provision of "An Act
         to authorize public  corporations  to  issue  bonds,
         other evidences of indebtedness and tax anticipation
         warrants  subject  to  interest rate limitations set
         forth therein", approved May 26,  1970,  as  now  or
         hereafter  amended,  or  any other provision of law,
         bear interest at any fixed or variable rate or rates
         determined by the method provided in the  resolution
         or trust agreement;
              (iii)  Be  payable  at  a time or times, in the
         denominations   and   form,   either   coupon,    or
         registered,  or both, and carry the registration and
         privileges as to exchange,  transfer  or  conversion
         and  for  the  replacement  of  mutilated,  lost  or
         destroyed bonds as the resolution or trust agreement
         may provide;
              (iv)  Be  payable in lawful money of the United
         States at a designated place;
              (v)  Be  subject  to  the  terms  of  purchase,
         payment, redemption, refunding, or refinancing  that
         the resolution or trust agreement provides;
              (vi)  Be  executed  by  the manual or facsimile
         signatures  of  the  officers   of   the   Authority
         designated  by  the Authority which signatures shall
         be valid at delivery even for one who has ceased  to
         hold office; and
              (vii)  Be sold in the manner and upon the terms
         determined by the Authority.
    (b)  Any   resolution  or  trust  agreement  may  contain
provisions which shall be  part  of  the  contract  with  the
holders of the bonds as to:
         (1)  Pledging,  assigning,  or  directing  the  use,
    investment,  or  disposition  of  all  or any part of the
    revenues of the Authority or proceeds or benefits of  any
    contract   including,   without   limit,  any  management
    agreement  or  assistance  agreement  and  conveying   or
    otherwise securing any property or property rights;
         (2)  The  setting  aside  of  loan funding deposits,
    debt service  reserves,  capitalized  interest  accounts,
    replacement  or  operating  reserves,  cost  of  issuance
    accounts   and   sinking   funds,   and  the  regulation,
    investment, and disposition thereof;
         (3)  Limitations on the purposes  to  which  or  the
    investments in which the proceeds of sale of any issue of
    bonds  or  the  Authority's  revenues and receipts may be
    applied or made;
         (4)  Limitations on the issue of  additional  bonds,
    the  terms  upon which additional bonds may be issued and
    secured, the terms upon which additional bonds  may  rank
    on a parity with, or be subordinate or superior to, other
    bonds;
         (5)  The    refinancing,   advance   refunding,   or
    refinancing of outstanding bonds;
         (6)  The procedure, if any, by which  the  terms  of
    any  contract  with bondholders may be altered or amended
    and the amount of bonds and holders of which must consent
    thereto, and the manner in which consent shall be given;
         (7)  Defining the  acts  or  omissions  which  shall
    constitute  a  default  in the duties of the Authority to
    holders of bonds and providing the rights or remedies  of
    such  holders in the event of a default which may include
    provisions restricting  individual  right  of  action  by
    bondholders;
         (8)  Providing  for guarantees, pledges of property,
    letters of credit, or other security,  or  insurance  for
    the benefit of bondholders; and
         (9)  Any  other  matter  relating to the bonds which
    the Authority determines appropriate.
    (c)  No member of the Authority nor any person  executing
the  bonds shall be liable personally on the bonds or subject
to any personal liability by reason of the  issuance  of  the
bonds.
    (d)  The Authority may enter into agreements with agents,
banks,  insurers,  or others for the purpose of enhancing the
marketability of or security for its bonds.
    (e) (1)  A  pledge  by  the  Authority  of  revenues  and
receipts as security  for  an  issue  of  bonds  or  for  the
performance of its obligations under any management agreement
or  assistance  agreement shall be valid and binding from the
time when the pledge is made.
         (2)  The  revenues  and   receipts   pledged   shall
    immediately  be subject to the lien of the pledge without
    any physical delivery or further act, and the lien of any
    pledge shall be valid  and  binding  against  any  person
    having  any  claim  of  any  kind  in  tort,  contract or
    otherwise against the Authority, irrespective of  whether
    the person has notice.
         (3)  No   resolution,  trust  agreement,  management
    agreement  or  assistance  agreement  or  any   financing
    statement,  continuation  statement,  or other instrument
    adopted or entered into by the Authority need be filed or
    recorded in any public record other than the  records  of
    the  Authority in order to perfect the lien against third
    persons, regardless of any contrary provision of law.
    (f)  The Authority may issue  bonds  to  refund,  advance
refund,  or  refinance  any  of  its  bonds then outstanding,
including the payment  of  any  redemption  premium  and  any
interest  accrued  or  to  accrue  to  the  earliest  or  any
subsequent  date  of  redemption, purchase or maturity of the
bonds. Refunding or advance refunding bonds may be issued for
the public purposes of realizing  savings  in  the  effective
costs   of   debt   service,   directly  or  through  a  debt
restructuring, for alleviating impending or  actual  default,
or  for  paying principal of, redemption premium, if any, and
interest  on  bonds  as  they  mature  or  are   subject   to
redemption,  and  may  be  issued in one or more series in an
amount in excess of that of the bonds to be refunded.
    (g)  At no time shall the  total  outstanding  bonds  and
notes  of  the Authority issued under this Section 100 exceed
(i) $40,000,000 in connection with facilities  owned  by  the
Authority; and (ii) $40,000,000 in connection with facilities
owned by a governmental owner other than the Authority. Bonds
which are being paid or retired by issuance, sale or delivery
of  bonds  or  notes, and bonds or notes for which sufficient
funds have been deposited with the paying agent or trustee to
provide for payment of principal and  interest  thereon,  and
any  redemption  premium,  as  provided  in  the  authorizing
resolution,  shall  not  be  considered  outstanding  for the
purposes of this paragraph.
    (h)  The bonds and notes of the Authority  shall  not  be
indebtedness of the State, or of any political subdivision of
the  State  other  than the Authority. The bonds and notes of
the Authority are not general obligations  of  the  State  of
Illinois,  or of any other political subdivision of the State
other than the Authority, and are not secured by a pledge  of
the full faith and credit of the State of Illinois, or of any
other  political  subdivision  of  the  State  other than the
Authority,  and  the  holders  of  bonds  and  notes  of  the
Authority may not require  the  levy  or  imposition  by  the
State,  or any other political subdivision of the State other
than the Authority, of any taxes or, except  as  provided  in
this  Act,  the application of revenues or funds of the State
of Illinois, or any other political subdivision of the  State
other  than  the Authority, to the payment of bonds and notes
of the Authority.
    (i)  In order to provide for the payment of debt  service
requirements  (including amounts for reserve funds and to pay
the costs of credit enhancements) on bonds issued pursuant to
this Act, the Authority may provide in  any  trust  agreement
securing  such bonds for a pledge and assignment of its right
to all amounts  to  be  received  from  the  Illinois  Sports
Facilities  Fund  and for a pledge and assignment (subject to
the  terms  of  any  management   agreement   or   assistance
agreement)  of  all  taxes  and  other amounts to be received
under Section 100 of this Act and may further provide written
notice to the State Treasurer and  State  Comptroller  (which
notice  shall constitute a direction to those officers) for a
direct payment of  these  amounts  to  the  trustee  for  its
bondholders.
    (j)  The State of Illinois pledges to and agrees with the
holders  of  the  bonds  and  notes  of  the Authority issued
pursuant to this Act that the State will not limit  or  alter
the  rights and powers vested in the Authority by this Act so
as to impair the terms of any contract made by the  Authority
with  such  holders  or  in  any  way  impair  the rights and
remedies of such holders until such bonds and notes, together
with  interest  thereon,  with   interest   on   any   unpaid
installments  of  interest,  and  all  costs  and expenses in
connection with any action or proceedings by or on behalf  of
such  holders, are fully met and discharged. In addition, the
State pledges to and agrees with the holders of the bonds and
notes of the Authority issued pursuant to this Act  that  the
State  will not limit or alter the basis on which State funds
are to be allocated, deposited and paid to the  Authority  as
provided  in  this  Act,  or  the use of such funds, so as to
impair the terms of  any  such  contract.  The  Authority  is
authorized  to  include  these  pledges and agreements of the
State in any contract with the  holders  of  bonds  or  notes
issued pursuant to this Section.

    Section 105.  Tax. The Authority may impose an occupation
tax  upon  all  persons  engaged  in the business of renting,
leasing, or letting rooms in a hotel, as defined in the Hotel
Operators' Occupation Tax Act, at a rate not to exceed 2%  of
the  gross  rental  receipts  from  the  renting,  leasing or
letting of hotel rooms. The taxing may be  imposed,  however,
only  if  approved  by  ordinance  of the municipality within
which the tax is to be imposed.
    The tax imposed by the Authority pursuant to this Section
and all civil penalties that may be assessed as  an  incident
thereof   shall  be  collected  and  enforced  by  the  State
Department of Revenue.  The certificate of registration which
is issued by the Department  to  a  lessor  under  the  Hotel
Operators' Occupation Tax Act shall permit such registrant to
engage  in a business which is taxable under any ordinance or
resolution  enacted  pursuant   to   this   Section   without
registering   separately   with  the  Department  under  such
ordinance  or  resolution  or  under   this   Section.    The
Department  shall  have  full power to administer and enforce
this  Section;  to  collect  all  taxes  and  penalties   due
hereunder;  to dispose of taxes and penalties so collected in
the manner provided in this Section,  and  to  determine  all
rights  to  credit  memoranda,  arising  on  account  of  the
erroneous  payment  of  tax  or  penalty  hereunder.  In  the
administration  of,  and  compliance  with, this Section, the
Department and persons who are subject to this Section  shall
have  the  same  rights,  remedies,  privileges,  immunities,
powers  and  duties,  and  be subject to the same conditions,
restrictions,  limitations,  penalties  and  definitions   of
terms,  and  employ  the  same  modes  of  procedure,  as are
prescribed in the Hotel Operators' Occupation Tax Act (except
where that Act is inconsistent herewith), as the same is  now
or  may  hereafter  be amended, as fully as if the provisions
contained in the Hotel Operators' Occupation Tax Act were set
forth herein.
    Whenever the Department determines that a  refund  should
be made under this Section to a claimant instead of issuing a
credit  memorandum,  the  Department  shall  notify the State
Comptroller, who shall cause the warrant to be drawn for  the
amount   specified,   and   to  the  person  named,  in  such
notification from the Department.  Such refund shall be  paid
by  the  State Treasurer out of the amounts held by the State
Treasurer as trustee for the Authority.
    Persons subject to any tax imposed pursuant to  authority
granted  by  this  Section may reimburse themselves for their
tax liability for such tax by separately stating such tax  as
an   additional   charge,  which  charge  may  be  stated  in
combination, in a single amount, with State tax imposed under
the Hotel Operators' Occupation Tax Act.
    The Department shall forthwith  pay  over  to  the  State
Treasurer,  ex-officio,  as  trustee  for  the Authority, all
taxes and penalties collected  hereunder  for  deposit  in  a
trust fund outside the State Treasury.  On or before the 25th
day  of  each calendar month, the Department shall certify to
the Comptroller the amount to be paid to or on behalf of  the
Authority from amounts collected hereunder by the Department,
and   deposited  into  such  trust  fund  during  the  second
preceding calendar month. The amount to  be  paid  to  or  on
behalf  of  the  Authority shall be the amount (not including
credit memoranda)  collected  hereunder  during  such  second
preceding  calendar  month  by the Department, less an amount
equal to the amount of refunds authorized during such  second
preceding  calendar  month by the Department on behalf of the
Authority, and less 4% of such balance, which  sum  shall  be
retained  by  the State Treasurer to cover the costs incurred
by  the  Department  in  administering  and   enforcing   the
provisions  of  this  Section, as provided herein.  Each such
monthly certification by the Department shall also certify to
the Comptroller the amount to be so  retained  by  the  State
Treasurer  for  payment  into the General Revenue Fund of the
State Treasury.
    Amounts collected by  the  Department  and  paid  to  the
Authority  pursuant  to  this  Section  shall be used for the
corporate purposes of the Authority.
    Nothing in this Section shall be construed  to  authorize
the  Authority to impose a tax upon the privilege of engaging
in any business which under the constitution  of  the  United
States may not be made the subject of taxation by this State.
    An  ordinance  or  resolution imposing or discontinuing a
tax hereunder or effecting a change in the rate thereof shall
be effective on the first day of the  second  calendar  month
next following the month in which the ordinance or resolution
is passed.
    If  the Authority levies a tax authorized by this Section
it shall transmit to the Department of Revenue not later than
5 days after the adoption of the ordinance  or  resolution  a
certified  copy  of the ordinance or resolution imposing such
tax whereupon the Department  of  Revenue  shall  proceed  to
administer   and  enforce  this  Section  on  behalf  of  the
Authority. Upon a change in rate of a tax  levied  hereunder,
or  upon  the  discontinuance of the tax, the Authority shall
not later than  5  days  after  the  effective  date  of  the
ordinance  or resolution discontinuing the tax or effecting a
change in rate  transmit  to  the  Department  of  Revenue  a
certified  copy of the ordinance or resolution effecting such
change or discontinuance.

Effective Date: 01/01/04