Full Text of HB2369 96th General Assembly
HB2369sam003 96TH GENERAL ASSEMBLY
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Sen. A. J. Wilhelmi
Filed: 4/29/2010
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| AMENDMENT TO HOUSE BILL 2369
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| AMENDMENT NO. ______. Amend House Bill 2369, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The Illinois Finance Authority Act is amended | 6 |
| by adding Sections 825-105 and 825-110 as follows: | 7 |
| (20 ILCS 3501/825-105 new) | 8 |
| Sec. 825-105. Implementation of ARRA provisions regarding | 9 |
| recovery zone bonds. | 10 |
| (a) Findings. | 11 |
| Recovery zone bonds authorized by the American Recovery and | 12 |
| Reinvestment Act of
2009 are an important economic development | 13 |
| tool for the State. All counties in the State and
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| municipalities in the State with a population of 100,000 or | 15 |
| more have received an
allocation of recovery zone bond |
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| authorization. Under federal law, those allocations must be
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| used on or before December 31, 2010. The State strongly | 3 |
| encourages counties and
municipalities to issue recovery zone | 4 |
| bonds to spur economic development in the State.
Under federal | 5 |
| law, the allocations may be voluntarily waived to the State for | 6 |
| reallocation
by the State to other jurisdictions and other | 7 |
| projects in the State. This Section sets forth the
process by | 8 |
| which the Authority, on behalf of the State, will receive | 9 |
| otherwise unused
allocations and ensure that this valuable | 10 |
| economic development incentive will be used to the
fullest | 11 |
| extent feasible for the benefit of the citizens of the State of | 12 |
| Illinois. | 13 |
| (b) Definitions. | 14 |
| (i) "Affected local government" means either any | 15 |
| county in the State or a
municipality within the State if | 16 |
| the municipality has a population of 100,000 or more. | 17 |
| (ii) "Allocation amount" means the $666,972,000 amount | 18 |
| of recovery zone economic development bonds and | 19 |
| $1,000,457,000 amount of recovery zone facility bonds | 20 |
| authorized under ARRA for the financing of qualifying | 21 |
| projects located within the State and the sub-allocation of | 22 |
| those amounts among each affected local government. | 23 |
| (iii) "ARRA" means, collectively, the American | 24 |
| Recovery and Reinvestment Act of 2009, including, without | 25 |
| limitation, Sections 1400U-1, 1400U-2, and 1400U-3 of the |
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| Code; the guidance provided by the Internal Revenue Service | 2 |
| applicable to recovery zone bonds; and any legislation | 3 |
| subsequently adopted by the United States Congress to | 4 |
| extend or expand the economic development bond financing | 5 |
| incentives authorized by ARRA. | 6 |
| (iv) "ARRA implementing regulations" means the | 7 |
| regulations promulgated by the Authority as further | 8 |
| described in subdivision (d)(iv) of this Section to | 9 |
| implement the provisions of this Section. | 10 |
| (v) "Code" means the Internal Revenue Code of 1986, as | 11 |
| amended. | 12 |
| (vi) "Recovery zone" means any area designated | 13 |
| pursuant to Section 1400U-1 of the Code. | 14 |
| (vii) "Recovery zone bond" means any recovery zone | 15 |
| economic development bond or recovery zone facility bond | 16 |
| issued pursuant to Sections 1400U-2 and 1400U-3, | 17 |
| respectively, of the Code. | 18 |
| (viii) "Recovery zone bond allocation" means an | 19 |
| allocation of authority to issue recovery zone bonds | 20 |
| granted pursuant to Section 1400U-1 of the Code. | 21 |
| (ix) "Regional authority" means the Central Illinois | 22 |
| Economic Development Authority, Eastern Illinois Economic | 23 |
| Development Authority, Joliet Arsenal Development | 24 |
| Authority, Quad Cities Regional Economic Development | 25 |
| Authority, Riverdale Development Authority, Southeastern | 26 |
| Illinois Economic Development Authority, Southern Illinois |
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| Development Authority, Southwestern Illinois Development | 2 |
| Authority, Tri-County River Valley Development Authority, | 3 |
| Upper Illinois River Valley Development Authority, | 4 |
| Illinois Urban Development Authority, Western Illinois | 5 |
| Economic Development Authority, or Will-Kankakee Regional | 6 |
| Development Authority. | 7 |
| (x) "Sub-allocation" means the portion of the | 8 |
| allocation amount allocated to each affected local | 9 |
| government. | 10 |
| (xi) "Waived recovery zone bond allocation" means the | 11 |
| amount of the recovery zone bond allocation voluntarily | 12 |
| waived by an affected local government. | 13 |
| (xii) "Waiver agreement" means an agreement between | 14 |
| the Authority and an
affected local government providing | 15 |
| for the voluntary waiver, in whole or in part, of that
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| affected local government's sub-allocation to the | 17 |
| Authority. The waiver agreement may provide for the payment | 18 |
| of an affected local
government's reasonable fees and costs | 19 |
| as determined by the Authority in connection with
the | 20 |
| affected local government's voluntary waiver of its | 21 |
| sub-allocation. | 22 |
| (c) Additional findings. | 23 |
| It is found and declared that: | 24 |
| (i) it is in the public interest and for the benefit of | 25 |
| the State to maximize the use of economic development |
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| incentives authorized by ARRA; | 2 |
| (ii) those incentives include the maximum use of the | 3 |
| allocation amount for the issuance of recovery zone bonds | 4 |
| to promote job creation and economic development in any | 5 |
| area that has been designated as a recovery zone by an | 6 |
| affected local government under the applicable provisions | 7 |
| of ARRA; | 8 |
| (iii) those incentives also include the issuance by the | 9 |
| Authority of recovery zone bonds for the purposes of | 10 |
| financing qualifying projects to be financed with proceeds | 11 |
| of recovery zone bonds; and | 12 |
| (iv) the provisions of this Section reflect the State's | 13 |
| determination in good faith and in its discretion of the | 14 |
| reasonable manner in which waived recovery zone bond | 15 |
| allocations should be reallocated by the Authority. | 16 |
| (d) Powers of Authority. | 17 |
| (i) In order to carry out the provisions of ARRA and | 18 |
| further the purposes of this Section, the Authority has: | 19 |
| (A) the power to receive from any affected local | 20 |
| government its sub-allocation that it voluntarily | 21 |
| waives to the Authority, in whole or in part, for | 22 |
| reallocation by the Authority to a regional authority | 23 |
| specifically designated by that affected local | 24 |
| government, and the Authority shall reallocate that | 25 |
| waived recovery zone bond allocation to the regional |
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| authority specifically designated by that affected | 2 |
| local government; provided that (1) the affected local | 3 |
| government must take official action by resolution or | 4 |
| ordinance, as applicable, to waive the sub-allocation | 5 |
| to the Authority and specifically designate that its | 6 |
| waived recovery zone bond allocation should be | 7 |
| reallocated to a regional authority; (2) the regional | 8 |
| authority must use the sub-allocation to issue | 9 |
| recovery zone bonds on or before August 16, 2010 and, | 10 |
| if recovery zone bonds are not issued on or before | 11 |
| August 16, 2010, the sub-allocation shall be deemed | 12 |
| waived to the Authority for reallocation by the | 13 |
| Authority to qualifying projects; and (3) the proceeds | 14 |
| of the recovery zone bonds must be used for qualified | 15 |
| projects within the jurisdiction of the applicable | 16 |
| regional authority; | 17 |
| (B) at the Authority's sole discretion, the power | 18 |
| to reallocate any sub-allocation deemed waived to the | 19 |
| Authority pursuant to subsection (d)(i)(A)(2) back to | 20 |
| the regional authority that had the sub-allocation; | 21 |
| (C) the power to enter into waiver agreements with | 22 |
| affected local governments
to provide for their | 23 |
| voluntary waivers, in whole or in part, of their | 24 |
| sub-allocations, to
receive waived recovery zone bond | 25 |
| allocations from those affected local governments, and | 26 |
| to use those waived recovery zone bond allocations, in |
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| whole or in part, to issue recovery zone bonds of the | 2 |
| Authority for qualifying projects or to reallocate | 3 |
| those waived recovery zone bond allocations, in whole | 4 |
| or in part, to a county or municipality to issue its | 5 |
| own recovery zone bonds for qualifying projects; | 6 |
| (D) the power to designate areas within the State | 7 |
| as recovery zones or all of the State as a recovery | 8 |
| zone; and | 9 |
| (E) the power to issue recovery zone bonds for any | 10 |
| project authorized to be financed with proceeds | 11 |
| thereof under the applicable provisions of ARRA. | 12 |
| (ii) In addition to the powers set forth in item (i), | 13 |
| the Authority shall be the sole recipient, on behalf of the | 14 |
| State, of any waived recovery zone bond allocations. | 15 |
| Recovery zone bond allocations can be waived to the | 16 |
| Authority only by voluntary waiver as provided in this | 17 |
| Section. | 18 |
| (iii) In addition to the powers set forth in items (i) | 19 |
| and (ii), the Authority has any powers otherwise enjoyed by | 20 |
| the Authority in connection with the issuance of its bonds | 21 |
| if those powers are not in conflict with any provisions | 22 |
| with respect to recovery zone bonds set forth in ARRA. | 23 |
| (iv) The Authority has the power to adopt regulations | 24 |
| providing for the implementation of any of the provisions | 25 |
| contained in this Section, including provisions regarding | 26 |
| waiver agreements and the reallocation of all or any |
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| portion of the allocation amount and sub-allocations and | 2 |
| the issuance of recovery zone bonds; except that those | 3 |
| regulations shall not (1) apply to or affect any | 4 |
| designation of a recovery zone by a county or municipality, | 5 |
| (2) provide for any waiver or reallocation of an affected | 6 |
| local government's sub-allocation other than a voluntary | 7 |
| waiver as described in subsection (d), or (3) be | 8 |
| inconsistent with the provisions of subsection (d)(i). | 9 |
| Regulations adopted by the Authority for determining | 10 |
| reallocation of all or any portion of a waived recovery | 11 |
| zone bond allocation may include, but are not limited to, | 12 |
| (1) the ability of the county or municipality to issue | 13 |
| recovery zone bonds on or before December 31, 2010, (2) the | 14 |
| amount of jobs that will be retained or created, or both, | 15 |
| by the qualifying project to be financed by recovery zone | 16 |
| bonds, and (3) the geographical proximity of the qualifying | 17 |
| project to be financed by recovery zone bonds to a county | 18 |
| or municipality that voluntarily waived its sub-allocation | 19 |
| to the Authority. | 20 |
| (v) Unless extended by an act of the United States | 21 |
| Congress, no recovery zone
bonds may be issued after | 22 |
| December 31, 2010. | 23 |
| (e) Established dates for notice. | 24 |
| Any affected local government or any regional authority | 25 |
| that has issued recovery zone bonds on or before the effective |
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| date of this Section must report its issuance of recovery zone | 2 |
| bonds to the Authority within 30 days after the effective date | 3 |
| of this Section. After the effective date of this Section, any | 4 |
| affected local government or any regional authority must report | 5 |
| its issuance of recovery zone bonds to the Authority not less | 6 |
| than 30 days after those bonds are issued. | 7 |
| (f) Reports to the General Assembly. | 8 |
| Starting 60 days after the effective date of this Section | 9 |
| and ending on January 15, 2011, the Authority shall file a | 10 |
| report before the 15th day of each month with the General | 11 |
| Assembly detailing its implementation of this Section, | 12 |
| including but not limited to the dollar amount of the | 13 |
| allocation amount that has been reallocated by the Authority | 14 |
| pursuant to this Section, the recovery zone bonds issued in the | 15 |
| State as of the date of the report, and descriptions of the | 16 |
| qualifying projects financed by those recovery zone bonds. | 17 |
| (20 ILCS 3501/825-110 new) | 18 |
| Sec. 825-110. Implementation of ARRA provisions regarding | 19 |
| qualified energy conservation bonds. | 20 |
| (a) Definitions. | 21 |
| (i) "Affected local government" means any county or | 22 |
| municipality within the
State if the county or municipality | 23 |
| has a population of 100,000 or more, as defined in
Section |
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| 54D(e)(2)(C) of the Code. | 2 |
| (ii) "Allocation amount" means the $133,846,000 amount | 3 |
| of qualified energy conservation bonds authorized under | 4 |
| ARRA for the financing of qualifying projects located | 5 |
| within the State and the sub-allocation of those amounts | 6 |
| among each affected local government. | 7 |
| (iii) "ARRA" means, collectively, the American | 8 |
| Recovery and Reinvestment Act of 2009, including, without | 9 |
| limitation, Section 54D of the Code; the guidance provided | 10 |
| by the Internal Revenue Service applicable to qualified | 11 |
| energy conservation bonds; and any legislation | 12 |
| subsequently adopted by the United States Congress to | 13 |
| extend or expand the economic development bond financing | 14 |
| incentives authorized by ARRA. | 15 |
| (iv) "ARRA implementing regulations" means the | 16 |
| regulations promulgated by the Authority as further | 17 |
| described in subdivision (c)(iv) of this Section to | 18 |
| implement the provisions of this Section. | 19 |
| (v) "Code" means the Internal Revenue Code of 1986, as | 20 |
| amended. | 21 |
| (vi) "Qualified energy conservation bond" means any | 22 |
| qualified energy conservation bond issued pursuant to | 23 |
| Section 54D of the Code. | 24 |
| (vii) "Qualified energy conservation bond allocation" | 25 |
| means an allocation of authority to issue qualified energy | 26 |
| conservation bonds granted pursuant to Section 54D of the |
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| Code. | 2 |
| (viii) "Regional authority" means the Central Illinois | 3 |
| Economic Development Authority, Eastern Illinois Economic | 4 |
| Development Authority, Joliet Arsenal Development | 5 |
| Authority, Quad Cities Regional Economic Development | 6 |
| Authority, Riverdale Development Authority, Southeastern | 7 |
| Illinois Economic Development Authority, Southern Illinois | 8 |
| Development Authority, Southwestern Illinois Development | 9 |
| Authority, Tri-County River Valley Development Authority, | 10 |
| Upper Illinois River Valley Development Authority, | 11 |
| Illinois Urban Development Authority, Western Illinois | 12 |
| Economic Development Authority, or Will-Kankakee Regional | 13 |
| Development Authority. | 14 |
| (ix) "Sub-allocation" means the portion of the | 15 |
| allocation amount allocated to each affected local | 16 |
| government. | 17 |
| (x) "Waived qualified energy conservation bond | 18 |
| allocation" means the amount of the qualified energy | 19 |
| conservation bond allocation that an affected local | 20 |
| government elects to reallocate to the State pursuant to | 21 |
| Section 54D(e)(2)(B) of the Code. | 22 |
| (xi) "Waiver agreement" means an agreement between the | 23 |
| Authority and an
affected local government providing for | 24 |
| the reallocation, in whole or in part, of that
affected | 25 |
| local government's sub-allocation to the Authority. The | 26 |
| waiver agreement may provide for the payment of an affected |
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| local
government's reasonable fees and costs as determined | 2 |
| by the Authority in connection with
the affected local | 3 |
| government's reallocation of its sub-allocation. | 4 |
| (b) Findings. | 5 |
| It is found and declared that: | 6 |
| (i) it is in the public interest and for the benefit of | 7 |
| the State to maximize the use of economic development | 8 |
| incentives authorized by ARRA; | 9 |
| (ii) those incentives include the maximum use of the | 10 |
| allocation amount for the issuance of qualified energy | 11 |
| conservation bonds to promote energy conservation under | 12 |
| the applicable provisions of ARRA; and | 13 |
| (iii) those incentives also include the issuance by the | 14 |
| Authority of qualified energy conservation bonds for the | 15 |
| purposes of financing qualifying projects to be financed | 16 |
| with proceeds of qualified energy conservation bonds. | 17 |
| (c) Powers of Authority. | 18 |
| (i) In order to carry out the provisions of ARRA and | 19 |
| further the purposes of this Section, the Authority has: | 20 |
| (A) the power to receive from any affected local | 21 |
| government its sub-allocation that it voluntarily | 22 |
| waives to the Authority, in whole or in part, for | 23 |
| allocation by the Authority to a regional authority | 24 |
| specifically designated by that affected local |
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LRB096 10118 RCE 40889 a |
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| government, and the Authority shall reallocate that | 2 |
| waived qualified energy conservation bond allocation | 3 |
| to the regional authority specifically designated by | 4 |
| that affected local government; provided that (1) the | 5 |
| affected local government must take official action by | 6 |
| resolution or ordinance, as applicable, to waive the | 7 |
| sub-allocation to the Authority and specifically | 8 |
| designate that its waived qualified energy | 9 |
| conservation bond allocation should be reallocated to | 10 |
| a regional authority; (2) the regional authority must | 11 |
| use the sub-allocation to issue qualified energy | 12 |
| conservation bonds on or before August 16, 2010 and, if | 13 |
| qualified energy conservation bonds are not issued on | 14 |
| or before August 16, 2010, the sub-allocation shall be | 15 |
| deemed waived to the Authority for reallocation by the | 16 |
| Authority to qualifying projects; and (3) the proceeds | 17 |
| of the qualified energy conservation bonds must be used | 18 |
| for qualified projects within the jurisdiction of the | 19 |
| applicable regional authority; | 20 |
| (B) at the Authority's sole discretion, the power | 21 |
| to reallocate any sub-allocation deemed waived to the | 22 |
| Authority pursuant to subsection (c)(i)(A)(2) back to | 23 |
| the Regional Authority that had the sub-allocation; | 24 |
| (C) the power to enter into waiver agreements with | 25 |
| affected local
governments to provide for the | 26 |
| reallocation, in whole or in part, of their |
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| sub-allocations,
to receive waived qualified energy | 2 |
| conservation bond allocations from those affected | 3 |
| local governments, and to use those waived qualified | 4 |
| energy conservation bond allocations, in whole or in | 5 |
| part, to issue qualified energy conservation bonds of | 6 |
| the Authority for qualifying projects or to reallocate | 7 |
| those qualified energy conservation bond allocations, | 8 |
| in whole or in part, to a county or municipality to | 9 |
| issue its own energy conservation bonds for qualifying | 10 |
| projects; and | 11 |
| (D) the power to issue qualified energy | 12 |
| conservation bonds for any project authorized to be | 13 |
| financed with proceeds thereof under the applicable | 14 |
| provisions of ARRA. | 15 |
| (ii) In addition to the powers set forth in item (i), | 16 |
| the Authority shall be the sole recipient, on behalf of the | 17 |
| State, of any waived qualified energy conservation bond | 18 |
| allocations. Qualified energy conservation bond | 19 |
| allocations can be reallocated to the Authority only by | 20 |
| voluntary waiver as provided in this Section. | 21 |
| (iii) In addition to the powers set forth in items (i) | 22 |
| and (ii), the Authority has any powers otherwise enjoyed by | 23 |
| the Authority in connection with the issuance of its bonds | 24 |
| if those powers are not in conflict with any provisions | 25 |
| with respect to qualified energy conservation bonds set | 26 |
| forth in ARRA. |
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| (iv) The Authority has the power to adopt regulations | 2 |
| providing for the implementation of any of the provisions | 3 |
| contained in this Section, including the provisions | 4 |
| regarding waiver agreements and reallocation of all or any | 5 |
| portion of the allocation amount and sub-allocations and | 6 |
| the issuance of qualified energy conservation bonds; | 7 |
| except that those regulations shall not (1) provide any | 8 |
| waiver or reallocation of an affected local government's | 9 |
| sub-allocation other than a voluntary waiver as described | 10 |
| in subsection (c) or (2) be inconsistent with the | 11 |
| provisions of subsection (c)(i). Regulations adopted by | 12 |
| the Authority for determining reallocation of all or any | 13 |
| portion of a waived qualified energy conservation | 14 |
| allocation may include, but are not limited to, (1) the | 15 |
| ability of the county or municipality to issue qualified | 16 |
| energy conservation bonds by the end of a given calendar | 17 |
| year, (2) the amount of jobs that will be retained or | 18 |
| created, or both, by the qualifying project to be financed | 19 |
| by qualified energy conservation bonds, and (3) the | 20 |
| geographical proximity of the qualifying project to be | 21 |
| financed by qualified energy conservation bonds to a | 22 |
| municipality or county that reallocated its sub-allocation | 23 |
| to the Authority. | 24 |
| (d) Established dates for notice. | 25 |
| Any affected local government or regional authority that |
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| has issued qualified energy conservation bonds on or before the | 2 |
| effective date of this Section must report its issuance of | 3 |
| qualified energy conservation bonds to the Authority within 30 | 4 |
| days after the effective date of this Section. After the | 5 |
| effective date of this Section, any affected local government | 6 |
| or any regional authority must report its issuance of qualified | 7 |
| energy conservation bonds to the Authority not less than 30 | 8 |
| days after those bonds are issued. | 9 |
| (e) Reports to the General Assembly. | 10 |
| Starting 60 days after the effective date of this Section | 11 |
| and ending when there is no longer any allocation amount, the | 12 |
| Authority shall file a report before the 15th day of each month | 13 |
| with the General Assembly detailing its implementation of this | 14 |
| Section, including but not limited to the dollar amount of the | 15 |
| allocation amount that has been reallocated by the Authority | 16 |
| pursuant to this Section, the qualified energy conservation | 17 |
| bonds issued in the State as of the date of the report, and | 18 |
| descriptions of the qualifying projects financed by those | 19 |
| qualified energy conservation bonds.
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| Section 99. Effective date. This Act takes effect upon | 21 |
| becoming law.".
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