SB3474 96TH GENERAL ASSEMBLY

LRB096 18334 RCE 33711 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3474

Introduced 2/10/2010, by Sen. A. J. Wilhelmi

SYNOPSIS AS INTRODUCED:

20 ILCS 3501/825-105 new

Amends the Illinois Finance Authority Act. Authorizes the Authority to adopt implementing regulations for the American Recovery and Reinvestment Act of 2009 (ARRA). Contains provisions concerning recovery zones, allocations and reallocations under ARRA, bond authorizations, and other matters. 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 Finance Authority Act is amended by adding Section 825-105 as follows:

(20 ILCS 3501/825-105 new)

Sec. 825-105. Implementation of ARRA economic development incentives; recovery zone bonds and qualified energy conservation bonds.

(a) Definitions.

(i) "ARRA" means, collectively, the American Recovery and Reinvestment Act of 2009, including, without limitation, Sections 54D, 1400U-1, 1400U-2, and 1400U-3 of the Code; the guidance provided by the Internal Revenue Service; and any legislation subsequently adopted by the United States Congress to extend or expand the economic development bond financing incentives authorized by ARRA.

(ii) "ARRA implementing regulations" means the regulations promulgated by the Authority as further described in subsection (c) to implement the provisions of this Section.

(iii) "Code" means the Internal Revenue Code of 1986, as amended.

(iv) "Large local government" means any municipality or county if that municipality or county has a population of 100,000 or more.

(v) "Qualified energy conservation bond allocation" means an allocation of authority to issue qualified energy conservation bonds granted pursuant to Section 54D of the Code.

(vi) "Qualified energy conservation bond" means any qualified energy conservation bond issued pursuant to Section 54D of the Code.

(vii) "Recovery zone" means any area designated pursuant to Section 1400U-1 of the Code.

(viii) "Recovery zone bond" means any recovery zone economic development bond or recovery zone facility bond issued pursuant to Sections 1400U-2 and 1400U-3, respectively, of the Code.

(ix) "Recovery zone bond allocation" means an allocation of authority to issue recovery zone bonds granted pursuant to Section 1400U-1 of the Code.

(b) Findings.

(i) It is found and declared that it is in the public interest and for the benefit of the State to maximize the use of economic development incentives authorized by ARRA. These incentives include the following: (A) establishment of recovery zones; (B) issuance of recovery zone bonds to promote job creation and economic development in recovery zones; and (C) issuance of qualified energy conservation bonds to promote energy conservation and job creation.

(ii) The Authority can ensure that these economic development incentives are used to the maximum extent feasible by adopting regulations that provide for the following: (A) the establishment of recovery zones in accordance with the requirements of ARRA; (B) the reallocation of recovery zone bond allocations made pursuant to the provisions of ARRA that will not to be used before the date by which the authorization to issue those bonds expires; and (C) the allocation of the State's qualified energy conservation bond authorization to large local governments in accordance with the requirements of ARRA, as well as the reallocation of such initial allocations that will not otherwise be used to achieve the energy conservation and job creation objectives of ARRA.

(c) Adoption of ARRA implementing regulations.

(i) The Authority is authorized to adopt regulations providing for the establishment of recovery zones subject to the requirements of ARRA and to establish recovery zones pursuant to those regulations. In adopting the regulations and in establishing recovery zones, the Authority shall consult with the Governor's Office of Management and Budget and the Department of Commerce and Economic Opportunity.

(ii) The Authority is authorized to adopt regulations providing for the reallocation of the allocations initially made pursuant to ARRA for the issuance of recovery zone bonds. In adopting the regulations, the Authority shall consult with the Governor's Office of Management and Budget and the Department of Commerce and Economic Opportunity.

(iii) The Authority is authorized to adopt regulations providing for the allocation of the State's qualified energy conservation bond authorization, in accordance with the requirements of ARRA, as well as regulations providing for the subsequent reallocation of such initial allocation, all in order to fully achieve the energy conservation and job creation objectives of ARRA. In adopting the regulations, the Authority shall consult with the Governor's Office of Management and Budget and the Department of Commerce and Economic Opportunity.

(iv) The ARRA implementation regulations adopted by the Authority shall not authorize: (1) any reallocation of a recovery zone bond allocation or qualified energy conservation bond allocation prior to 90 days after the effective date of this amendatory Act of the 96th General Assembly; and (2) any reallocation of a recovery zone bond allocation or a qualified energy conservation bond allocation made to any home rule unit without the consent of that unit of government. The ARRA implementation regulations shall provide for the voluntary waiver by any home rule unit of any or all of the recovery zone bond allocation or qualified energy conservation bond allocation initially received by that governmental unit pursuant to ARRA.

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