HB5771 101ST GENERAL ASSEMBLY

LRB101 21128 RJF 71641 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5771

Introduced , by Rep. Joe Sosnowski

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Finance Authority Act. Creates the Five Year Loan Law as a new Article in the Illinois Finance Authority Act. Provides that the Illinois Finance Authority shall establish a Five Year Loan Office within the Authority. Provides further requirements concerning the operation of the Five Year Loan Office and the issuance of loans. Provides requirements concerning financing and charges related to the issuance of loans. Creates the Five Year Loan Office Advisory Board to oversee the operation of the Five Year Loan Office. Provides for the membership meetings, and powers of the Advisory Board. Provides for administrative support of the Advisory Board. Provides for the use of federal aid money. Provides for the adoption of rules, including emergency rules. Provides reporting requirements. Creates the Illinois Five Year Loan Fund as a special fund in the State treasury. Repeals the Five Year Loan Law Article on January 1, 2030. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Amends the State Finance Act to create the Illinois Five Year Loan Fund. Makes conforming changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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

Section 5. The Illinois Administrative Procedure Act is amended by adding Section 5-45.1 as follows:

(5 ILCS 100/5-45.1 new)

Sec. 5-45.1. Emergency rulemaking; Five Year Loan Law. To provide for the expeditious and timely implementation of the Five Year Loan Law, emergency rules implementing the Five Year Loan Law may be adopted in accordance with Section 5-45 by the Illinois Finance Authority. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed on January 1, 2026.

Section 10. The Illinois Finance Authority Act is amended by changing Section 801-1 and by adding Article 850 as follows:

(20 ILCS 3501/801-1)

Sec. 801-1. Short Title. Articles 801 through 850 845 of this Act may be cited as the Illinois Finance Authority Act. References to "this Act" in Articles 801 through 850 845 are references to the Illinois Finance Authority Act.

(Source: P.A. 95-331, eff. 8-21-07.)

(20 ILCS 3501/Art. 850 heading new)

ARTICLE 850

FIVE YEAR LOAN LAW

(20 ILCS 3501/850-1 new)

Sec. 850-1. Article title. This Article may be referred to as the Five Year Loan Law.

(20 ILCS 3501/850-5 new)

Sec. 850-5. Purpose. The purpose of this Article is to provide medium-term financial assistance to individuals that are residing within Illinois and to businesses domiciled within Illinois as of the effective date of this amendatory Act of the 101st General Assembly.

(20 ILCS 3501/850-10 new)

Sec. 850-10. Five Year Loan Office.

(a) The Authority shall establish a Five Year Loan Office within the Authority. The Office shall implement and administer the requirements of this Article. The Executive Director of the Authority shall appoint a Director as head of the Office who shall be under the authority of the Executive Director.

(b) The Five Year Loan Office shall loan money from the Illinois Five Year Loan Fund to eligible persons under this Article. Each loan shall mature not more than 5 years after the date from which it is made. No loan made under this Article shall be made on a date later than 12 months after the effective date of this amendatory Act of the 101st General Assembly.

(20 ILCS 3501/850-15 new)

Sec. 850-15. Financing and charges. No loan made under this Article shall: (i) bear principal repayment charges until the expiration of 6 months after the loan is made; (ii) bear interest until the expiration of 12 months after the loan is made; or (iii) change loan-origination charges or loan-commencement fees of any sort.

(20 ILCS 3501/850-20 new)

Sec. 850-20. Five Year Loan Office Advisory Board.

(a) The Five Year Loan Office Advisory Board is hereby created within the Authority to oversee the operation of the Five Year Loan Office.

(b) The Advisory Board shall consist of the following members: (i) 2 persons appointed by the Governor, one of whom shall be the chairperson of the Advisory Board; (ii) the Executive Director of the Authority, or his or her designate; (iii) one person appointed by the Governor who is designated by the largest Illinois banking association within the State; (iv) one person appointed by the Governor who is designated by the largest Illinois community banking association within the State; (v) one person appointed by the Governor who is designated by the largest association representing Illinois small businesses within the State; and (vi) one person appointed by the Director of Employment Security to represent the interests of unemployed individuals.

(c) The Advisory Board shall meet at least once every quarter. Members of the Advisory Board shall receive no compensation for serving as members. The Advisory Board shall have access to all of the books and records of the Five Year Loan Office created under this Article. The Advisory Board is exempt from the provisions of the Open Meetings Act requiring that the members of a public body meet in person. The Authority shall provide administrative and other support to the Advisory Board.

(20 ILCS 3501/850-25 new)

Sec. 850-25. Federal aid. Any moneys, and any loan authority to use such moneys, from the federal government allocated to Illinois in response to the economic conditions of calendar year 2020 for the purpose of providing loan assistance to affected individuals and small businesses shall be deposited into the Illinois Five Year Loan Fund and loaned out as provided under this Article.

(20 ILCS 3501/850-30 new)

Sec. 850-30. Rules. The Authority shall adopt rules, including emergency rules under Section 5-45 of the Illinois Administrative Procedure Act, to implement the provisions of this Article.

(20 ILCS 3501/850-35 new)

Sec. 850-35. Reports. The Five Year Loan Office shall prepare and file quarterly reports with the Governor and General Assembly on the implementation of this Article. Each report shall be submitted on or before April 30, July 31, October 31, and January 31 of each calendar year that this Article is in effect, with each report serving as an opportunity to summarize the implementation of this Article during the calendar quarter concluding one month before each reporting deadline. The January 31 report shall also serve as a report summarizing the implementation and administration of this Article for the previous calendar year, including any suggestions for improving the services provided under this Article.

(20 ILCS 3501/850-40 new)

Sec. 850-40. Illinois Five Year Loan Fund. The Illinois Five Year Loan Fund is created as a special fund in the State treasury. Moneys in the Illinois Five Year Loan Fund, subject to appropriation, shall be used for issuing loans as provided under this Article.

(20 ILCS 3501/850-45 new)

Sec. 850-45. Repeal. This Article is repealed on January 1, 2030.

Section 15. The State Finance Act is amended by adding Section 5.930 as follows:

(30 ILCS 105/5.930 new)

Sec. 5.930. The Illinois Five Year Loan Fund.

Section 99. Effective date. This Act takes effect upon becoming law.