SB3474sam001 96TH GENERAL ASSEMBLY

Sen. A. J. Wilhelmi

Filed: 3/15/2010

09600SB3474sam001 LRB096 18334 RCE 39011 a

AMENDMENT TO SENATE BILL 3474

AMENDMENT NO. ______. Amend Senate Bill 3474 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Finance Authority Act is amended by adding Sections 825-105 and 825-110 as follows:

(20 ILCS 3501/825-105 new)

Sec. 825-105. Implementation of ARRA provisions regarding recovery zone bonds. (a) Definitions.

(i) "Allocation amount" means the $666,972,000 amount of recovery zone economic development bonds and $1,000,457,000 amount of recovery zone facility bonds authorized under ARRA for the financing of qualifying projects located within the State and the sub-allocation of those amounts among each large local municipality.

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

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

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

(v) "Excluded municipality" means any city within the State with a population in excess of 500,000 and any county within the State with a population in excess of 1,000,000.

(vi) "Home rule unit" means a county or municipality that is a home rule unit as provided in Section 6 of Article VII of the Illinois Constitution of 1970.

(vii) "Large local municipality" means either a municipality within the State if that municipality has a population of 100,000 or more or any county in the State.

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

(ix) "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.

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

(xi) "Sub-allocation" means the portion of the allocation amount allocated to each large local municipality.

(xii) "Unused recovery zone bond allocation" means the amount of the recovery zone bond allocation that is recaptured and re-allocated by the Authority pursuant to this Section.

(xiii) "Waived recovery zone bond allocation" means the amount of the recovery zone bond allocation voluntarily waived by a large local municipality pursuant to the provisions of the ARRA implementing regulations. (b) Findings.

It is found and declared that:

(i) it is in the public interest and for the benefit of the State to maximize the use of economic development incentives authorized by ARRA;

(ii) those incentives include the maximum use of the allocation amount for the issuance of recovery zone bonds to promote job creation and economic development in any area that has been designated as a recovery zone by a large local municipality under the applicable provisions of ARRA; and

(iii) those incentives also include the issuance by the Authority of recovery zone bonds for the purposes of financing qualifying projects with proceeds of recovery zone bonds. (c) Powers of Authority.

(i) In order to carry out the provisions of ARRA and further the purposes of this Section, the Authority has:

(A) the power to re-allocate to qualifying projects all or a portion of waived recovery zone bond allocation;

(B) the power to recapture all or a portion of unused recovery zone bond allocation from any large local municipality (other than an excluded municipality) that has not allocated or does not reasonably expect to allocate that amount to the issuance of one or more recovery zone bonds by the dates set forth for that issuance in subsection (d) of this Section;

(C) the power to re-allocate all or a portion of that unused recovery zone bond allocation to any large local municipality that has submitted a request for a portion of the allocation amount for the purpose of financing one or more projects that will qualify for financing with proceeds of recovery zone bonds;

(D) the power to designate areas within the State as recovery zones or all of the State as a recovery zone; and

(E) the power to issue recovery zone bonds for any project authorized to be financed with proceeds thereof under the applicable provisions of ARRA.

(ii) In addition to the powers set forth in item (i), the Authority has the power to be the sole issuer of any recovery zone bonds for any project for which the Authority has made a re-allocation of unused recovery zone bond allocation or waived recovery zone bond allocation.

(iii) In addition to the powers set forth in items (i) and (ii), the Authority has any powers otherwise enjoyed by the Authority in connection with the issuance of its bonds if those powers are not in conflict with any provisions with respect to recovery zone bonds set forth in ARRA.

(iv) The Authority has the power to adopt regulations providing for the implementation of any of the provisions contained in this Section, including the recapture and re-allocation of all or any portion of the allocation amount and the issuance of recovery zone bonds; except that those regulations shall not (1) apply to or affect any designation of a recovery zone by a municipality or county or (2) provide for the recapture or re-allocation of an excluded municipality's sub-allocation without an excluded municipality's consent. Regulations adopted by the Authority for determining re-allocation of all or any portion of the allocation amount may include, but are not limited to, (1) the ability of the municipality or county to issue recovery zone bonds on or before December 31, 2010, (2) the amount of jobs that will be retained or created, or both, by the qualifying project to be financed by recovery zone bonds, and (3) the geographical proximity of the qualifying project to be financed by recovery zone bonds to a county or municipality that had its allocation amount re-allocated by the Authority. (d) Established dates for notice, recapture, waiver, and re-allocation.

(i) In order to best effectuate the effective implementation of the recovery zone bond provisions of ARRA, the following dates are deemed to apply:

(A) Any large local municipality (other than an excluded municipality) that plans to use its sub-allocation must notify the Authority no later than the earlier of May 1, 2010 or 30 days after the effective date of this Section as to the portion of the sub-allocation that large local municipality has allocated, or expects to allocate, to a qualifying project.

(B) Any large local municipality (other than an excluded municipality) that does not notify the Authority as required under item (A) is deemed to have forfeited the sub-allocation and the amount of that large local municipality's sub-allocation shall be deemed "recaptured" by the Authority on that date.

(C) On or after the earlier of May 2, 2010 or 31 days after the effective date of this Section, the Authority may re-allocate any of the unused recovery zone bond allocation to one or more projects that, in the discretion of the Authority, qualify for financing with proceeds of recovery zone bonds.

(D) A large local municipality may voluntarily waive all or a portion of its sub-allocation at any time by notifying the Authority of its intention to do so.

(E) An excluded municipality must notify the Authority by July 1, 2010 of its plans to use its sub-allocation.

(F) Any portion of a large local municipality's sub-allocation (except for an excluded municipality's sub-allocation) that was not recaptured by the Authority on the earlier of May 1, 2010 or 30 days after the effective date of this Section, but that has not been used for the issuance of a recovery zone bond by July 1, 2010, is deemed waived by that large local municipality (other than an excluded municipality) and the Authority shall recapture that amount on that date.

(G) Any large local municipality, municipality, or county that has issued recovery zone bonds on or before the effective date of this Section must report its issuance of recovery zone bonds to the Authority within 30 days after the effective date of this Section. After the effective date of this Section, any large local municipality, municipality, or county must report its issuance of recovery zone bonds to the Authority not less than 30 days after those bonds are issued.

(H) On and after July 2, 2010, the Authority may re-allocate any portion of the unused allocation amount to one or more projects that, in the discretion of the Authority, qualify for financing with proceeds of recovery zone bonds.

(ii) Unless extended by an act of the United States Congress, no recovery zone bonds may be issued after December 31, 2010. (e) Reports to the General Assembly.

Starting 60 days after the effective date of this Section and ending on January 15, 2011, the Authority shall file a report before the 15th day of each month with the General Assembly detailing its implementation of this Section, including but not limited to the dollar amount of the allocation amount that has been re-allocated by the Authority pursuant to this Section, the recovery zone bonds issued in the State as of the date of the report, and descriptions of the qualifying projects financed by those recovery zone bonds. (f) Limitation on home rule units.

Pursuant to paragraphs (h) and (i) of Section 6 of Article VII of the Illinois Constitution, this Section specifically denies and limits the exercise by home rule units of any power that is inconsistent with this Section, and all existing laws and ordinances that are inconsistent with this Section are hereby superseded. This Section does not preempt the concurrent exercise by home rule units of powers consistent with this Section.

(20 ILCS 3501/825-110 new)

Sec. 825-110. Implementation of ARRA provisions regarding qualified energy conservation bonds. (a) Definitions.

(i) "Allocation amount" means the $133,846,000 amount of qualified energy conservation bonds authorized under ARRA for the financing of qualifying projects located within the State and the sub-allocation of those amounts among each large local government.

(ii) "ARRA" means, collectively, the American Recovery and Reinvestment Act of 2009, including, without limitation, Section 54D of the Code; the guidance provided by the Internal Revenue Service applicable to qualified energy conservation bonds; and any legislation subsequently adopted by the United States Congress to extend or expand the economic development bond financing incentives authorized by ARRA.

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

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

(v) "Excluded local government" means any city within the State with a population in excess of 500,000 and any county within the State with a population in excess of 1,000,000.

(vi) "Home rule unit" means a county or municipality that is a home rule unit as provided in Section 6 of Article VII of the Illinois Constitution of 1970.

(vii) "Large local government" means any municipality or county within the State if that municipality or county has a population of 100,000 or more, as defined in Section 54D(e)(2)(C) of the Code.

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

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

(x) "Sub-allocation" means the portion of the allocation amount allocated to each large local government.

(xi) "Unused qualified energy conservation bond allocation" means the amount of the qualified energy conservation bond allocation that is recaptured and re-allocated by the Authority pursuant to this Section.

(xii) "Waived qualified energy conservation bond allocation" means the amount of the qualified energy conservation bond allocation that a large local government elects to release to the State pursuant to Section 54D(e)(2)(B) of the Code. (b) Findings.

It is found and declared that:

(i) it is in the public interest and for the benefit of the State to maximize the use of economic development incentives authorized by ARRA;

(ii) those incentives include the maximum use of the allocation amount for the issuance of qualified energy conservation bonds to promote energy conservation under the applicable provisions of ARRA; and

(iii) those incentives also include the issuance by the Authority of qualified energy conservation bonds for the purposes of financing qualifying projects with proceeds of qualified energy conservation bonds. (c) Powers of Authority.

(i) In order to carry out the provisions of ARRA and further the purposes of this Section, the Authority has:

(A) the power to recapture all or a portion of unused qualified energy conservation bond allocation from any large local government (other than an excluded local government) that has not allocated or does not reasonably expect to allocate that amount to the issuance of one or more qualified energy conservation bonds by the dates set forth for that issuance in subsection (d) of this Section;

(B) the power to receive all or a portion of the waived qualified energy conservation bond allocation on behalf of the State;

(C) the power to re-allocate all or a portion of that unused qualified energy conservation bond allocation and waived qualified energy conservation bond allocation for the purpose of financing one or more projects that will qualify for financing with proceeds of qualified energy conservation bonds, for which the Authority has received a request for a portion of the allocation amount; and

(D) the power to issue qualified energy conservation bonds for any project authorized to be financed with proceeds thereof under the applicable provisions of ARRA.

(ii) In addition to the powers set forth in item (i), the Authority has the power to be the sole issuer of any qualified energy conservation bonds for any project for which the Authority has made a re-allocation of unused qualified energy conservation bond allocation or waived qualified energy conservation bond allocation.

(iii) In addition to the powers set forth in items (i) and (ii), the Authority has any powers otherwise enjoyed by the Authority in connection with the issuance of its bonds if those powers are not in conflict with any provisions with respect to qualified energy conservation bonds set forth in ARRA.

(iv) The Authority has the power to adopt regulations providing for the implementation of any of the provisions contained in this Section, including the recapture and re-allocation of all or any portion of the allocation amount and the issuance of qualified energy conservation bonds; except that those regulations shall not provide for the recapture or re-allocation of an excluded local government's sub-allocation without an excluded local government's consent. Regulations adopted by the Authority for determining re-allocation of all or any portion of the allocation amount may include, but are not limited to, (1) the ability of the municipality or county to issue qualified energy conservation bonds by the end of a given calendar year, (2) the amount of jobs that will be retained or created, or both, by the qualifying project to be financed by qualified energy conservation bonds, and (3) the geographical proximity of the qualifying project to be financed by qualified energy conservation bonds to a county or municipality that had its allocation amount re-allocated by the Authority. (d) Established dates for notice, recapture, waiver, and re-allocation.

(i) In order to best effectuate the effective implementation of the qualified energy conservation bond provisions of ARRA, the following dates are deemed to apply:

(A) Any large local government (other than an excluded local government) that plans to use its sub-allocation in a given calendar year must notify the Authority no later than June 15 of that calendar year as to the portion of the sub-allocation that large local government has allocated, or expects to allocate, to a qualifying project.

(B) Any large local government (other than an excluded local government) that does not notify the Authority as required under item (A) is deemed to have forfeited the sub-allocation and the amount of that large local government's sub-allocation shall be deemed "recaptured" by the Authority on that date.

(C) On or after July 1 of that calendar year, the Authority may re-allocate any of the unused qualified energy conservation bond allocation to one or more projects that, in the discretion of the Authority, qualify for financing with proceeds of qualified energy conservation bonds.

(D) A large local government may voluntarily waive all or a portion of its sub-allocation at any time by notifying the Authority of its intention to do so.

(E) An excluded local government must notify the Authority by July 1 of that year of its plans to use its sub-allocation.

(F) In a given calendar year, any portion of a large local government's sub-allocation (except for an excluded local government's sub-allocation) that was not recaptured by the Authority on June 15 of that year, but that has not been used for the issuance of a qualified energy conservation bond by August 15 of that year, is deemed waived by that large local government (other than an excluded local government) and the Authority shall recapture that amount on that date.

(G) On and after September 1 in a given calendar year, the Authority may re-allocate any portion of the unused allocation amount to one or more projects that, in the discretion of the Authority, qualify for financing with proceeds of qualified energy conservation bonds.

(H) Any large local government, municipality, or county that has issued qualified energy conservation bonds on or before the effective date of this Section must report its issuance of qualified energy conservation bonds to the Authority within 30 days after the effective date of this Section. After the effective date of this Section, any large local government, municipality, or county must report its issuance of qualified energy conservation bonds to the Authority not less than 30 days after those bonds are issued.

(e) Reports to the General Assembly.

Starting 60 days after the effective date of this Section and ending when there is no longer any allocation amount, the Authority shall file a report before the 15th day of each month with the General Assembly detailing its implementation of this Section, including but not limited to the dollar amount of the allocation amount that has been re-allocated by the Authority pursuant to this Section, the qualified energy conservation bonds issued in the State as of the date of the report, and descriptions of the qualifying projects financed by those qualified energy conservation bonds. (f) Limitation on home rule units.

Pursuant to paragraphs (h) and (i) of Section 6 of Article VII of the Illinois Constitution, this Section specifically denies and limits the exercise by home rule units of any power that is inconsistent with this Section, and all existing laws and ordinances that are inconsistent with this Section are hereby superseded. This Section does not preempt the concurrent exercise by home rule units of powers consistent with this Section.

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