Illinois General Assembly - Full Text of SB1090
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Full Text of SB1090  93rd General Assembly

SB1090 93rd General Assembly


                                     LRB093 10537 BDD 10791 b

 1        AN ACT concerning sports facilities.

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

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

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

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

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

28        Section 20. Terms of appointments.
29        (a)  On the effective date of this Act:
30             (1)  The Governor shall  appoint  the  Chair  and  3
31        other  members  of  the  Board for initial terms expiring
32        June 30 of 2006.
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 1             (2)  The Governor shall appoint  2  members  of  the
 2        Board for initial terms expiring June 30 of 2005.
 3             (3)  The  Governor  shall  appoint  2 members of the
 4        Board for initial terms expiring June 30 of 2004.
 5        (b)  At  the  expiration  of  the  term  of  any   member
 6    appointed  by  the  Governor,  the Governor shall appoint the
 7    member's successor in the same manner as appointments for the
 8    initial terms.  All successors shall hold office for  a  term
 9    of  3  years  from the first day of July of the year in which
10    they are appointed, except in the case of an  appointment  to
11    fill  a vacancy. Each member, including the Chair, shall hold
12    office until the expiration of the member's  term  and  until
13    the  member's  successor is appointed and qualified.  Nothing
14    shall preclude a member or a Chair from  serving  consecutive
15    terms.
16        (c)  Vacancies  for  members  and  for the Chair shall be
17    filled in the same manner as original  appointments  for  the
18    balance of the unexpired term.

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

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

 4        Section 40. Duties.
 5        (a)  In addition to the powers  set  forth  elsewhere  in
 6    this  Act,  subject  to  the terms of any agreements with the
 7    holders of the Authority's  evidences  of  indebtedness,  the
 8    Authority shall do the following:
 9             (1)  Comply  with all zoning, building, and land use
10        controls of the municipality within which is located  any
11        stadium  facility owned by the Authority or for which the
12        Authority provides financial assistance.
13             (2)  Enter into a loan agreement with an owner of  a
14        facility   to   finance  the  acquisition,  construction,
15        maintenance,  or  rehabilitation  of  the  facility.  The
16        agreement  shall  contain  appropriate   and   reasonable
17        provisions  with  respect  to  termination,  default, and
18        legal remedies.  The loan may be at below-market interest
19        rates.
20             (3)  Create and maintain  a  financial  reserve  for
21        repair and replacement of capital assets.
22        (b)  In  a  loan  agreement for the construction of a new
23    facility, in  connection  with  prequalification  of  general
24    contractors  for  construction of the facility, the Authority
25    shall  require  that  the  owner  of  the  facility   require
26    submission   of   a  commitment  detailing  how  the  general
27    contractor will expend 25% or more of the dollar value of the
28    general  contract  with  one  or   more   minority   business
29    enterprises  and  5%  or more of the dollar value with one or
30    more female business enterprises. This commitment may be  met
31    by  contractor's  status as a minority business enterprise or
32    female  business  enterprise,  by  a  joint  venture,  or  by
33    subcontracting a portion of the work with  or  by  purchasing
                            -12-     LRB093 10537 BDD 10791 b
 1    materials  for the work from one or more such enterprises, or
 2    by any combination thereof. Any  contract  with  the  general
 3    contractor for construction of the new facility shall require
 4    the  general contractor to meet the foregoing obligations and
 5    shall require monthly reporting to the Authority with respect
 6    to the status  of  the  implementation  of  the  contractor's
 7    affirmative  action  plan and compliance with that plan. This
 8    report  shall  be  filed  with  the  General  Assembly.   The
 9    Authority shall require that the facility owner establish and
10    maintain  an  affirmative  action program designed to promote
11    equal employment opportunity and that specifies the goals and
12    methods for increasing participation by minorities and  women
13    in  a  representative  mix of job classifications required to
14    perform the respective contracts. The Authority shall file  a
15    report  before March 1 of each year with the General Assembly
16    detailing its implementation of this  subsection.  The  terms
17    "minority   business   enterprise"   and   "female   business
18    enterprise"  have  the  meanings  provided  in  the  Business
19    Enterprise   for   Minorities,   Females,  and  Persons  with
20    Disabilities Act.
21        (c)  With respect to a facility owned or to be  owned  by
22    the  Authority,  enter  or  have  entered  into  a management
23    agreement with a tenant  of  the  Authority  to  operate  the
24    facility that requires the tenant to operate the facility for
25    a  period at least as long as the term of any bonds issued to
26    finance   the   development,   establishment,   construction,
27    erection, acquisition,  repair,  reconstruction,  remodeling,
28    adding  to, extension, improvement, equipping, operation, and
29    maintenance of the facility.  Such  agreement  shall  contain
30    appropriate   and   reasonable  provisions  with  respect  to
31    termination, default, and legal remedies.

32        Section 45. Reporting. Promptly following entering into a
33    management agreement, an  assistance  agreement,  or  a  loan
                            -13-     LRB093 10537 BDD 10791 b
 1    agreement  involving  a  new  facility  or facility site, the
 2    Authority shall submit a detailed written report and findings
 3    of the Authority with  respect  to  the  proposed  management
 4    agreement,  assistance  agreement,  or  loan agreement to the
 5    General Assembly.
 6        The report and findings of the  Authority  shall  include
 7    the following:
 8             (A)  A  detailed  plan  of the method of funding the
 9        management  agreement,  assistance  agreement,  or   loan
10        agreement;
11             (B)  An  evaluation  of the economic consequences of
12        the proposed management agreement, assistance  agreement,
13        or loan agreement; and
14             (C)  If  applicable,  an analysis of the reasons for
15        acquiring a site for constructing a new facility.

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

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

24        Section 60. Tax exemption.
25        (a)  Neither  the Authority nor any governmental owner of
26    a facility or  that  governmental  owner's  tenant  shall  be
27    required to pay property taxes on any facility, nor shall the
28    interest  of  a  tenant  in  any facility either owned by the
29    Authority or owned by any governmental  owner  to  which  the
30    Authority  has  provided  financial  assistance be subject to
31    property taxes.
                            -14-     LRB093 10537 BDD 10791 b
 1        (b)  Bonds issued by the Authority, their  transfer,  the
 2    interest  payable  on  them, and any income derived from them
 3    shall be exempt from income taxes or  from  taxation  by  any
 4    political  subdivisions,  municipal  corporations,  or public
 5    agencies of any kind of this State. For purposes  of  Section
 6    250  of  the  Illinois  Income  Tax Act, the exemption of the
 7    income from bonds issued by  the  Authority  shall  terminate
 8    after  all  of  the  bonds have been paid. The amount of such
 9    income that  shall  be  added  and  then  subtracted  on  the
10    Illinois income tax return of a taxpayer, pursuant to Section
11    203  of  the  Illinois  Income Tax Act, from federal adjusted
12    gross income or federal taxable income in computing  Illinois
13    base  income  shall  be  the interest net of any bond premium
14    amortization.

15        Section 65. Conflicts of interest; generally.
16        (a)  No members or employees of the  Authority  shall  be
17    employed  by,  be  an  officer  or  director  of, or have any
18    ownership interest in any corporation or  entity  that  is  a
19    party to a loan agreement with the Authority under this Act.
20        (b)  No moneys of the Authority shall be deposited in any
21    financial  institution  in  which  any  officer, director, or
22    holder of a substantial proprietary interest is also a member
23    or employee of the Authority.
24        (c)  No real estate to which a member or employee of  the
25    Authority holds legal title or in which such a person has any
26    beneficial  interest, including any interest in a land trust,
27    shall be purchased by  the  Authority,  nor  shall  any  such
28    property  be  purchased  by  a  corporation  or  entity for a
29    facility to be financed under  this  Act.  Every  member  and
30    employee  of  the  Authority  shall  file  annually  with the
31    Authority a record of all real estate in this State to  which
32    the  person  holds legal title or in which the person has any
33    beneficial interest, including any interest in a land  trust.
                            -15-     LRB093 10537 BDD 10791 b
 1    In  the  event  it  is  later disclosed that the Authority or
 2    other entity has purchased real estate in which a  member  or
 3    employee  had  an interest, the purchase shall be voidable by
 4    the Authority and the member or employee  involved  shall  be
 5    disqualified   from   membership  in  or  employment  by  the
 6    Authority.

 7        Section 70. Conflicts of interest; contracts.
 8        (a)  No member of the Authority  or  officer,  agent,  or
 9    employee of the Authority shall, in his or her own name or in
10    the  name  of a nominee, be an officer or director of or hold
11    an ownership interest  of  more  than  7.5%  in  any  person,
12    association, trust, corporation, partnership, or other entity
13    that is, in its own name or in the name of a nominee, a party
14    to  a contract or agreement upon which the member or officer,
15    agent, or employee may be called upon to act or vote.
16        (b)  With respect to any direct or any indirect interest,
17    other than an interest prohibited in  subsection  (a),  in  a
18    contract  or  agreement  upon  which  the  member or officer,
19    agent, or employee may be called  upon  to  act  or  vote,  a
20    member of the Authority or officer, agent, or employee of the
21    Authority  shall  disclose  the  same to the secretary of the
22    Authority before the taking of final action by the  Authority
23    concerning  the  contract  or agreement and shall so disclose
24    the nature and  extent  of  such  interest  and  his  or  her
25    acquisition  thereof,  which  disclosures  shall  be publicly
26    acknowledged by the Authority and entered upon the minutes of
27    the Authority.  If a member  of  the  Authority  or  officer,
28    agent,  or  employee of the Authority holds such an interest,
29    then he or  she  shall  refrain  from  any  further  official
30    involvement  in  regard  to  the  contract or agreement, from
31    voting on any matter pertaining to the contract or agreement,
32    and from communicating with other members of the Authority or
33    its officers, agents, and employees concerning  the  contract
                            -16-     LRB093 10537 BDD 10791 b
 1    or agreement. Notwithstanding any other provision of law, any
 2    contract  or  agreement  entered into in conformity with this
 3    subsection (b) shall not be void or invalid by reason of  the
 4    interest  described  in this subsection, nor shall any person
 5    so  disclosing  the  interest  and  refraining  from  further
 6    official involvement as provided in this subsection be guilty
 7    of an offense, be removed from office, or be subject  to  any
 8    other penalty on account of such interest.
 9        (c)  Any  contract  or  agreement  made  in  violation of
10    subsection (a) or (b) of this Section shall be null and  void
11    and give rise to no action against the Authority.

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

28        Section  85.  No impairment of loan agreement.  The State
29    of Illinois pledges to and agrees  with  any  facility  owner
30    under  any  loan agreement entered into by the Authority with
31    respect to a facility that the State will not limit or  alter
32    the  rights and powers vested in the Authority by this Act so
                            -17-     LRB093 10537 BDD 10791 b
 1    as to impair the terms of any the loan agreement  or  in  any
 2    way  impair  the  rights and remedies of the owner so long as
 3    the owner is not in default under  the  loan  agreement.   In
 4    addition, the State pledges to and agrees with the owner that
 5    the  State  will not limit the basis on which State funds are
 6    to be allocated, deposited, and paid to the Authority, or the
 7    use of those funds, so as to impair the  terms  of  any  such
 8    loan  agreement.  The Authority is authorized to include this
 9    pledge and agreement of the State in the loan agreement.

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

18        Section 100. Bonds and notes.
19        (a) (1)  The  Authority  may at any time and from time to
20    time  issue  bonds  and  notes  for  any  corporate  purpose,
21    including the establishment of reserves and  the  payment  of
22    interest  and costs of issuance. In this Act the term "bonds"
23    includes notes of any kind, interim  certificates,  refunding
24    bonds  or any other evidence of obligation for borrowed money
25    issued under this Section 100. Bonds may be issued in one  or
26    more series and may be payable and secured either on a parity
27    with or separately from other bonds.
28             (2)  The  bonds of any issue shall be payable solely
29        from all or any part of the property or revenues  of  the
30        Authority, including, without limitation:
31                  (i)  Rents,  rates,  fees,  charges,  or  other
32             revenues   payable   to   or  any  receipts  of  the
                            -18-     LRB093 10537 BDD 10791 b
 1             Authority, including  amounts  which  are  deposited
 2             pursuant to the Act with a trustee for bondholders;
 3                  (ii)  Payments   by   financial   institutions,
 4             insurance  companies,  or others pursuant to letters
 5             or  lines  of  credit,  policies  of  insurance,  or
 6             purchase agreements;
 7                  (iii)  Investment  earnings   from   funds   or
 8             accounts maintained pursuant to a bond resolution or
 9             trust agreement; and
10                  (iv)  Proceeds of refunding bonds.
11             (3)  Bonds  may be authorized by a resolution of the
12        Authority and may be secured by a trust agreement by  and
13        between   the   Authority  and  a  corporate  trustee  or
14        trustees, which may be any trust company or  bank  having
15        the  powers  of  a  trust  company  within or without the
16        State. Bonds may:
17                  (i)  Mature at a  time  or  times,  whether  as
18             serial  bonds,  as  term  bonds,  or  as  both,  not
19             exceeding  40  years  from their respective dates of
20             issue;
21                  (ii)  Notwithstanding the provision of "An  Act
22             to  authorize  public  corporations  to issue bonds,
23             other evidences of indebtedness and tax anticipation
24             warrants subject to interest  rate  limitations  set
25             forth  therein",  approved  May  26, 1970, as now or
26             hereafter amended, or any other  provision  of  law,
27             bear interest at any fixed or variable rate or rates
28             determined  by the method provided in the resolution
29             or trust agreement;
30                  (iii)  Be payable at a time or  times,  in  the
31             denominations    and   form,   either   coupon,   or
32             registered, or both, and carry the registration  and
33             privileges  as  to  exchange, transfer or conversion
34             and  for  the  replacement  of  mutilated,  lost  or
                            -19-     LRB093 10537 BDD 10791 b
 1             destroyed bonds as the resolution or trust agreement
 2             may provide;
 3                  (iv)  Be payable in lawful money of the  United
 4             States at a designated place;
 5                  (v)  Be  subject  to  the  terms  of  purchase,
 6             payment,  redemption, refunding, or refinancing that
 7             the resolution or trust agreement provides;
 8                  (vi)  Be executed by the  manual  or  facsimile
 9             signatures   of   the   officers  of  the  Authority
10             designated by the Authority which  signatures  shall
11             be  valid at delivery even for one who has ceased to
12             hold office; and
13                  (vii)  Be sold in the manner and upon the terms
14             determined by the Authority.
15        (b)  Any  resolution  or  trust  agreement  may   contain
16    provisions  which  shall  be  part  of  the contract with the
17    holders of the bonds as to:
18             (1)  Pledging,  assigning,  or  directing  the  use,
19        investment, or disposition of all  or  any  part  of  the
20        revenues  of the Authority or proceeds or benefits of any
21        contract  including,  without   limit,   any   management
22        agreement   or  assistance  agreement  and  conveying  or
23        otherwise securing any property or property rights;
24             (2)  The setting aside  of  loan  funding  deposits,
25        debt  service  reserves,  capitalized  interest accounts,
26        replacement  or  operating  reserves,  cost  of  issuance
27        accounts  and  sinking   funds,   and   the   regulation,
28        investment, and disposition thereof.
29             (3)  Limitations  on  the  purposes  to which or the
30        investments in which the proceeds of sale of any issue of
31        bonds or the Authority's revenues  and  receipts  may  be
32        applied or made;
33             (4)  Limitations  on  the issue of additional bonds,
34        the terms upon which additional bonds may be  issued  and
                            -20-     LRB093 10537 BDD 10791 b
 1        secured,  the  terms upon which additional bonds may rank
 2        on a parity with, or be subordinate or superior to, other
 3        bonds.
 4             (5)  The   refinancing,   advance   refunding,    or
 5        refinancing of outstanding bonds.
 6             (6)  The  procedure,  if  any, by which the terms of
 7        any contract with bondholders may be altered  or  amended
 8        and the amount of bonds and holders of which must consent
 9        thereto, and the manner in which consent shall be given;
10             (7)  Defining  the  acts  or  omissions  which shall
11        constitute a default in the duties of  the  Authority  to
12        holders  of bonds and providing the rights or remedies of
13        such holders in the event of a default which may  include
14        provisions  restricting  individual  right  of  action by
15        bondholders.
16             (8)  Providing for guarantees, pledges of  property,
17        letters  of  credit,  or other security, or insurance for
18        the benefit of bondholders; and
19             (9)  Any other matter relating to  the  bonds  which
20        the Authority determines appropriate.
21        (c)  No  member of the Authority nor any person executing
22    the bonds shall be liable personally on the bonds or  subject
23    to  any  personal  liability by reason of the issuance of the
24    bonds.
25        (d)  The Authority may enter into agreements with agents,
26    banks, insurers, or others for the purpose of  enhancing  the
27    marketability of or security for its bonds.
28        (e) (1)  A  pledge  by  the  Authority  of  revenues  and
29    receipts  as  security  for  an  issue  of  bonds  or for the
30    performance of its obligations under any management agreement
31    or assistance agreement shall be valid and binding  from  the
32    time when the pledge is made.
33             (2)  The   revenues   and   receipts  pledged  shall
34        immediately be subject to the lien of the pledge  without
                            -21-     LRB093 10537 BDD 10791 b
 1        any physical delivery or further act, and the lien of any
 2        pledge  shall  be  valid  and  binding against any person
 3        having any  claim  of  any  kind  in  tort,  contract  or
 4        otherwise  against the Authority, irrespective of whether
 5        the person has notice.
 6             (3)  No  resolution,  trust  agreement,   management
 7        agreement   or  assistance  agreement  or  any  financing
 8        statement, continuation statement,  or  other  instrument
 9        adopted or entered into by the Authority need be filed or
10        recorded  in  any public record other than the records of
11        the Authority in order to perfect the lien against  third
12        persons, regardless of any contrary provision of law.
13        (f)  The  Authority  may  issue  bonds to refund, advance
14    refund, or refinance  any  of  its  bonds  then  outstanding,
15    including  the  payment  of  any  redemption  premium and any
16    interest  accrued  or  to  accrue  to  the  earliest  or  any
17    subsequent date of redemption, purchase or  maturity  of  the
18    bonds. Refunding or advance refunding bonds may be issued for
19    the  public  purposes  of  realizing savings in the effective
20    costs  of  debt  service,  directly   or   through   a   debt
21    restructuring,  for  alleviating impending or actual default,
22    or for paying principal of, redemption premium, if  any,  and
23    interest   on   bonds  as  they  mature  or  are  subject  to
24    redemption, and may be issued in one or  more  series  in  an
25    amount in excess of that of the bonds to be refunded.
26        (g)  At  no  time  shall  the total outstanding bonds and
27    notes of the Authority issued under this Section  100  exceed
28    (i)  $40,000,000  in  connection with facilities owned by the
29    Authority; and (ii) $40,000,000 in connection with facilities
30    owned by a governmental owner other than the Authority. Bonds
31    which are being paid or retired by issuance, sale or delivery
32    of bonds or notes, and bonds or notes  for  which  sufficient
33    funds have been deposited with the paying agent or trustee to
34    provide  for  payment  of principal and interest thereon, and
                            -22-     LRB093 10537 BDD 10791 b
 1    any  redemption  premium,  as  provided  in  the  authorizing
 2    resolution, shall  not  be  considered  outstanding  for  the
 3    purposes of this paragraph.
 4        (h)  The  bonds  and  notes of the Authority shall not be
 5    indebtedness of the State, or of any political subdivision of
 6    the State other than the Authority. The bonds  and  notes  of
 7    the  Authority  are  not  general obligations of the State of
 8    Illinois, or of any other political subdivision of the  State
 9    other  than the Authority, and are not secured by a pledge of
10    the full faith and credit of the State of Illinois, or of any
11    other political subdivision  of  the  State  other  than  the
12    Authority,  and  the  holders  of  bonds  and  notes  of  the
13    Authority  may  not  require  the  levy  or imposition by the
14    State, or any other political subdivision of the State  other
15    than  the  Authority,  of any taxes or, except as provided in
16    this Act, the application of revenues or funds of  the  State
17    of  Illinois, or any other political subdivision of the State
18    other than the Authority, to the payment of bonds  and  notes
19    of the Authority.
20        (i)  In  order to provide for the payment of debt service
21    requirements (including amounts for reserve funds and to  pay
22    the costs of credit enhancements) on bonds issued pursuant to
23    this  Act,  the  Authority may provide in any trust agreement
24    securing such bonds for a pledge and assignment of its  right
25    to  all  amounts  to  be  received  from  the Illinois Sports
26    Facilities Fund and for a pledge and assignment  (subject  to
27    the   terms   of   any  management  agreement  or  assistance
28    agreement) of all taxes and  other  amounts  to  be  received
29    under Section 100 of this Act and may further provide written
30    notice  to  the  State Treasurer and State Comptroller (which
31    notice shall constitute a direction to those officers) for  a
32    direct  payment  of  these  amounts  to  the  trustee for its
33    bondholders.
34        (j)  The State of Illinois pledges to and agrees with the
                            -23-     LRB093 10537 BDD 10791 b
 1    holders of the  bonds  and  notes  of  the  Authority  issued
 2    pursuant  to  this Act that the State will not limit or alter
 3    the rights and powers vested in the Authority by this Act  so
 4    as  to impair the terms of any contract made by the Authority
 5    with such holders  or  in  any  way  impair  the  rights  and
 6    remedies of such holders until such bonds and notes, together
 7    with   interest   thereon,   with   interest  on  any  unpaid
 8    installments of interest,  and  all  costs  and  expenses  in
 9    connection  with any action or proceedings by or on behalf of
10    such holders, are fully met and discharged. In addition,  the
11    State pledges to and agrees with the holders of the bonds and
12    notes  of  the Authority issued pursuant to this Act that the
13    State will not limit or alter the basis on which State  funds
14    are  to  be allocated, deposited and paid to the Authority as
15    provided in this Act, or the use of  such  funds,  so  as  to
16    impair  the  terms  of  any  such  contract. The Authority is
17    authorized to include these pledges  and  agreements  of  the
18    State  in  any  contract  with  the holders of bonds or notes
19    issued pursuant to this Section.

20        Section 105.  Tax. The Authority may impose an occupation
21    tax upon all persons engaged  in  the  business  of  renting,
22    leasing, or letting rooms in a hotel, as defined in the Hotel
23    Operators'  Occupation Tax Act, at a rate not to exceed 2% of
24    the gross  rental  receipts  from  the  renting,  leasing  or
25    letting  of  hotel rooms. The taxing may be imposed, however,
26    only if approved by  ordinance  of  the  municipality  within
27    which the tax is to be imposed.
28        The tax imposed by the Authority pursuant to this Section
29    and  all  civil penalties that may be assessed as an incident
30    thereof  shall  be  collected  and  enforced  by  the   State
31    Department of Revenue.  The certificate of registration which
32    is  issued  by  the  Department  to  a lessor under the Hotel
33    Operators' Occupation Tax Act shall permit such registrant to
                            -24-     LRB093 10537 BDD 10791 b
 1    engage in a business which is taxable under any ordinance  or
 2    resolution   enacted   pursuant   to   this  Section  without
 3    registering  separately  with  the  Department   under   such
 4    ordinance   or   resolution   or  under  this  Section.   The
 5    Department shall have full power to  administer  and  enforce
 6    this   Section;  to  collect  all  taxes  and  penalties  due
 7    hereunder; to dispose of taxes and penalties so collected  in
 8    the  manner  provided  in  this Section, and to determine all
 9    rights  to  credit  memoranda,  arising  on  account  of  the
10    erroneous  payment  of  tax  or  penalty  hereunder.  In  the
11    administration of, and compliance  with,  this  Section,  the
12    Department  and persons who are subject to this Section shall
13    have  the  same  rights,  remedies,  privileges,  immunities,
14    powers and duties, and be subject  to  the  same  conditions,
15    restrictions,   limitations,  penalties  and  definitions  of
16    terms, and  employ  the  same  modes  of  procedure,  as  are
17    prescribed in the Hotel Operators' Occupation Tax Act (except
18    where  that Act is inconsistent herewith), as the same is now
19    or may hereafter be amended, as fully as  if  the  provisions
20    contained in the Hotel Operators' Occupation Tax Act were set
21    forth herein.
22        Whenever  the  Department determines that a refund should
23    be made under this Section to a claimant instead of issuing a
24    credit memorandum, the  Department  shall  notify  the  State
25    Comptroller,  who shall cause the warrant to be drawn for the
26    amount  specified,  and  to  the  person   named,   in   such
27    notification  from the Department.  Such refund shall be paid
28    by the State Treasurer out of the amounts held by  the  State
29    Treasurer as trustee for the Authority.
30        Persons  subject to any tax imposed pursuant to authority
31    granted by this Section may reimburse  themselves  for  their
32    tax  liability for such tax by separately stating such tax as
33    an  additional  charge,  which  charge  may  be   stated   in
34    combination, in a single amount, with State tax imposed under
                            -25-     LRB093 10537 BDD 10791 b
 1    the Hotel Operators' Occupation Tax Act.
 2        The  Department  shall  forthwith  pay  over to the State
 3    Treasurer, ex-officio, as  trustee  for  the  Authority,  all
 4    taxes  and  penalties  collected  hereunder  for deposit in a
 5    trust fund outside the State Treasury.  On or before the 25th
 6    day of each calendar month, the Department shall  certify  to
 7    the  Comptroller the amount to be paid to or on behalf of the
 8    Authority from amounts collected hereunder by the Department,
 9    and  deposited  into  such  trust  fund  during  the   second
10    preceding  calendar  month.  The  amount  to be paid to or on
11    behalf of the Authority shall be the  amount  (not  including
12    credit  memoranda)  collected  hereunder  during  such second
13    preceding calendar month by the Department,  less  an  amount
14    equal  to the amount of refunds authorized during such second
15    preceding calendar month by the Department on behalf  of  the
16    Authority,  and  less  4% of such balance, which sum shall be
17    retained by the State Treasurer to cover the  costs  incurred
18    by   the   Department  in  administering  and  enforcing  the
19    provisions of this Section, as provided  herein.   Each  such
20    monthly certification by the Department shall also certify to
21    the  Comptroller  the  amount  to be so retained by the State
22    Treasurer for payment into the General Revenue  Fund  of  the
23    State Treasury.
24        Amounts  collected  by  the  Department  and  paid to the
25    Authority pursuant to this Section  shall  be  used  for  the
26    corporate purposes of the Authority.
27        Nothing  in  this Section shall be construed to authorize
28    the Authority to impose a tax upon the privilege of  engaging
29    in  any  business  which under the constitution of the United
30    States may not be made the subject of taxation by this State.
31        An ordinance or resolution imposing  or  discontinuing  a
32    tax hereunder or effecting a change in the rate thereof shall
33    be  effective  on  the first day of the second calendar month
34    next following the month in which the ordinance or resolution
                            -26-     LRB093 10537 BDD 10791 b
 1    is passed.
 2        If the Authority levies a tax authorized by this  Section
 3    it shall transmit to the Department of Revenue not later than
 4    5  days  after  the adoption of the ordinance or resolution a
 5    certified copy of the ordinance or resolution  imposing  such
 6    tax  whereupon  the  Department  of  Revenue shall proceed to
 7    administer  and  enforce  this  Section  on  behalf  of   the
 8    Authority.  Upon  a change in rate of a tax levied hereunder,
 9    or upon the discontinuance of the tax,  the  Authority  shall
10    not  later  than  5  days  after  the  effective  date of the
11    ordinance or resolution discontinuing the tax or effecting  a
12    change  in  rate  transmit  to  the  Department  of Revenue a
13    certified copy of the ordinance or resolution effecting  such
14    change or discontinuance.