Full Text of HB1866 97th General Assembly
HB1866 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB1866 Introduced , by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: |
| 70 ILCS 530/7 | from Ch. 85, par. 7157 | 70 ILCS 530/7.1 new | |
|
Amends the Upper Illinois River Valley Development Authority Act. Provides that the Upper Illinois River Valley Development Authority may issue bonds, notes, or other evidences of indebtedness in an aggregate amount outstanding not to exceed $500,000,000 (now, $250,000,000). Provides that the notes and bonds issued by the Authority and the income from these notes and bonds may be free from all taxation by the State or its political subdivisions, except for estate, transfer, and inheritance taxes. Provides that the exemption from taxation shall apply to the income on any notes or bonds of the Authority only if the Authority in its sole judgment determines that the exemption enhances the marketability of the bonds or notes or reduces the interest rates that would otherwise be borne by the bonds or notes. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB1866 | | LRB097 09118 RLJ 49253 b |
|
| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Upper Illinois River Valley Development | 5 | | Authority Act is amended by changing Section 7 and by adding | 6 | | Section 7.1 as follows:
| 7 | | (70 ILCS 530/7) (from Ch. 85, par. 7157)
| 8 | | Sec. 7. Bonds.
| 9 | | (a) The Authority, with the written approval of the
| 10 | | Governor, shall have the continuing power to issue bonds, | 11 | | notes, or other
evidences of indebtedness in an aggregate | 12 | | amount outstanding not to exceed $500,000,000 $250,000,000
for | 13 | | the purpose of developing, constructing, acquiring or | 14 | | improving
projects, including those established by business | 15 | | entities locating or
expanding property within the territorial | 16 | | jurisdiction of the Authority,
for entering into venture | 17 | | capital agreements with businesses locating or
expanding | 18 | | within the territorial jurisdiction of the Authority, for
| 19 | | acquiring and improving any property necessary and useful in | 20 | | connection
therewith and for the purposes of the Employee | 21 | | Ownership Assistance Act.
For the purpose of evidencing the | 22 | | obligations of the Authority to repay any
money borrowed, the | 23 | | Authority may, pursuant to resolution, from time to
time issue |
| | | HB1866 | - 2 - | LRB097 09118 RLJ 49253 b |
|
| 1 | | and dispose of its interest bearing revenue bonds, notes or
| 2 | | other evidences of indebtedness and may also from time to time | 3 | | issue and
dispose of such bonds, notes or other evidences of | 4 | | indebtedness to refund,
at maturity, at a redemption date or in | 5 | | advance of either, any bonds, notes
or other evidences of | 6 | | indebtedness pursuant to redemption provisions or at
any time | 7 | | before maturity. All such bonds, notes or other evidences of
| 8 | | indebtedness shall be payable solely and only from the revenues | 9 | | or income
to be derived from loans made with respect to | 10 | | projects, from the leasing or
sale of the projects or from any | 11 | | other funds available to the Authority for
such purposes. The | 12 | | bonds, notes or other evidences of indebtedness may
bear such | 13 | | date or dates, may mature at such time or times not exceeding | 14 | | 40
years from their respective dates, may bear interest at such | 15 | | rate or rates
not exceeding the maximum rate permitted by "An | 16 | | Act to authorize public
corporations to issue bonds, other | 17 | | evidences of indebtedness and tax
anticipation warrants | 18 | | subject to interest rate limitations set forth
therein", | 19 | | approved May 26, 1970, as amended, may be in such form, may | 20 | | carry
such registration privileges, may be executed in such | 21 | | manner, may be
payable at such place or places, may be made | 22 | | subject to redemption in such
manner and upon such terms, with | 23 | | or without premium as is stated on the
face thereof, may be | 24 | | authenticated in such manner and may contain such
terms and | 25 | | covenants as may be provided by an applicable resolution.
| 26 | | (b-1) The holder or holders of any bonds, notes or other |
| | | HB1866 | - 3 - | LRB097 09118 RLJ 49253 b |
|
| 1 | | evidences of
indebtedness issued by the Authority may bring | 2 | | suits at law or proceedings
in equity to compel the performance | 3 | | and observance by any corporation or
person or by the Authority | 4 | | or any of its agents or employees of any
contract or covenant | 5 | | made with the holders of such bonds, notes or other
evidences | 6 | | of indebtedness, to compel such corporation, person, the
| 7 | | Authority and any of its agents or employees to perform any | 8 | | duties required
to be performed for the benefit of the holders | 9 | | of any such bonds, notes or
other evidences of indebtedness by | 10 | | the provision of the resolution
authorizing their issuance and | 11 | | to enjoin such corporation, person, the
Authority and any of | 12 | | its agents or employees from taking any action in
conflict with | 13 | | any such contract or covenant.
| 14 | | (b-2) If the Authority fails to pay the principal of or | 15 | | interest on any
of the bonds or premium, if any, as the same | 16 | | become due, a civil action to
compel payment may be instituted | 17 | | in the appropriate circuit court by the
holder or holders of | 18 | | the bonds on which such default of payment exists or
by an | 19 | | indenture trustee acting on behalf of such holders. Delivery of | 20 | | a
summons and a copy of the complaint to the Chairman of the | 21 | | Board shall
constitute sufficient service to give the circuit | 22 | | court jurisdiction of the
subject matter of such a suit and | 23 | | jurisdiction over the Authority and its
officers named as | 24 | | defendants for the purpose of compelling such payment.
Any | 25 | | case, controversy or cause of action concerning the validity of | 26 | | this Act
relates to the revenue of the State of Illinois.
|
| | | HB1866 | - 4 - | LRB097 09118 RLJ 49253 b |
|
| 1 | | (c) Notwithstanding the form and tenor of any such bonds, | 2 | | notes or other
evidences of indebtedness and in the absence of | 3 | | any express recital on the
face thereof that it is | 4 | | non-negotiable, all such bonds, notes and other
evidences of | 5 | | indebtedness shall be negotiable instruments. Pending the
| 6 | | preparation and execution of any such bonds, notes or other | 7 | | evidences of
indebtedness, temporary bonds, notes or evidences | 8 | | of indebtedness may be
issued as provided by ordinance.
| 9 | | (d) To secure the payment of any or all of such bonds, | 10 | | notes or other
evidences of indebtedness, the revenues to be | 11 | | received by the Authority from
a lease agreement or loan | 12 | | agreement shall be pledged, and, for the purpose
of setting | 13 | | forth the covenants and undertakings of the Authority in
| 14 | | connection with the issuance thereof and the issuance of any | 15 | | additional
bonds, notes or other evidences of indebtedness | 16 | | payable from such revenues,
income or other funds to be derived | 17 | | from projects, the Authority may
execute and deliver a mortgage | 18 | | or trust agreement. A remedy for any breach
or default of the | 19 | | terms of any such mortgage or trust agreement by the
Authority | 20 | | may be by mandamus proceedings in the appropriate circuit court
| 21 | | to compel the performance and compliance therewith, but the | 22 | | trust agreement
may prescribe by whom or on whose behalf such | 23 | | action may be instituted.
| 24 | | (e) Such bonds or notes shall be secured as provided in the | 25 | | authorizing
ordinance which may, notwithstanding any other | 26 | | provision of this Act,
include in addition to any other |
| | | HB1866 | - 5 - | LRB097 09118 RLJ 49253 b |
|
| 1 | | security a specific pledge or assignment
of and lien on or | 2 | | security interest in any or all revenues or money of the
| 3 | | Authority from whatever source which may by law be used for | 4 | | debt
service purposes and a specific pledge or assignment of | 5 | | and lien on or
security interest in any funds or accounts | 6 | | established or provided for by
ordinance of the Authority | 7 | | authorizing the issuance of such bonds or notes.
| 8 | | (f) In the event that the Authority determines that monies | 9 | | of the
Authority will not be sufficient for the payment of the | 10 | | principal of and
interest on its bonds during the next State | 11 | | fiscal year, the
Chairman, as soon as practicable, shall | 12 | | certify to the Governor the
amount required by the Authority to | 13 | | enable
it to pay such principal of and interest on the bonds.
| 14 | | The Governor shall submit the amount so certified to the | 15 | | General Assembly
as soon as practicable, but no later than the | 16 | | end of the current State fiscal
year. This Section shall
not | 17 | | apply to any bonds or notes as to which the
Authority shall | 18 | | have determined, in the resolution authorizing the issuance
of | 19 | | the bonds or notes, that this Section shall not apply. Whenever | 20 | | the
Authority makes such a determination, that fact shall be | 21 | | plainly stated on
the face of the bonds or notes and that fact | 22 | | shall also be reported to the Governor.
| 23 | | In the event of a withdrawal of moneys from a reserve fund | 24 | | established
with respect to any issue or issues of bonds of the | 25 | | Authority to pay
principal or interest on those bonds, the | 26 | | Chairman of the Authority, as
soon as practicable, shall |
| | | HB1866 | - 6 - | LRB097 09118 RLJ 49253 b |
|
| 1 | | certify to the Governor the amount required
to restore the | 2 | | reserve fund to the level required in the
resolution or | 3 | | indenture securing those bonds.
The Governor shall submit the | 4 | | amount so certified to the General Assembly
as soon as | 5 | | practicable, but no later than the end of the current State | 6 | | fiscal year.
| 7 | | (g) The State of Illinois pledges to and agrees with the | 8 | | holders of the
bonds and notes of the Authority issued pursuant | 9 | | to this Section that the
State will not limit or alter the | 10 | | rights and powers vested in the Authority
by this Act so as to | 11 | | impair the terms of any contract made by the Authority
with | 12 | | such holders or in any way impair the rights and remedies of | 13 | | such
holders until such bonds and notes, together with interest | 14 | | thereon, with
interest on any unpaid installments of interest, | 15 | | and all costs and expenses
in connection with any action or | 16 | | proceedings by or on behalf of such
holders, are fully met and | 17 | | discharged. In addition, the State pledges to
and agrees with | 18 | | the holders of the bonds and notes of the Authority issued
| 19 | | pursuant to this Section that the State will not limit or alter | 20 | | the basis
on which State funds are to be paid to the Authority | 21 | | as provided in this
Act, or the use of such funds, so as to | 22 | | impair the terms of any such
contract. The Authority is | 23 | | authorized to include these pledges and
agreements of the State | 24 | | in any contract with the holders of bonds or notes
issued | 25 | | pursuant to this Section.
| 26 | | (h) Not less than 30 days prior to the commitment to issue |
| | | HB1866 | - 7 - | LRB097 09118 RLJ 49253 b |
|
| 1 | | bonds,
notes, or other evidences of indebtedness for the | 2 | | purpose of developing,
constructing, acquiring or improving | 3 | | housing or residential projects, as
defined in Section 3, the | 4 | | Authority shall provide notice to the
Executive Director of the | 5 | | Illinois Housing Development Authority. Within
30 days after | 6 | | notice is provided, the Illinois Housing Development
Authority | 7 | | shall either in writing express interest in financing the | 8 | | project
or notify the Authority that it is not interested in | 9 | | providing such
financing and the Authority may finance the | 10 | | project or seek alternative
financing.
| 11 | | (Source: P.A. 91-905, eff. 7-7-00.)
| 12 | | (70 ILCS 530/7.1 new) | 13 | | Sec. 7.1. Bonds and notes; exemption from taxation. The | 14 | | creation of the Authority is in all respects for the benefit of | 15 | | the people of Illinois and for the improvement of their health, | 16 | | safety, welfare, comfort, and security, and its purposes are | 17 | | public purposes. In consideration thereof, the notes and bonds | 18 | | of the Authority issued pursuant to this Act and the income | 19 | | from these notes and bonds may be free from all taxation by the | 20 | | State or its political subdivisions, except for estate, | 21 | | transfer, and inheritance taxes. The exemption from taxation | 22 | | set forth in this Section shall apply to the income on any | 23 | | notes or bonds of the Authority only if the Authority in its | 24 | | sole judgment determines that the exemption enhances the | 25 | | marketability of the bonds or notes or reduces the interest |
| | | HB1866 | - 8 - | LRB097 09118 RLJ 49253 b |
|
| 1 | | rates that would otherwise be borne by the bonds or notes. For | 2 | | purposes of Section 250 of the Illinois Income Tax Act, the | 3 | | exemption of the Authority shall terminate after all of the | 4 | | bonds have been paid. The amount of the income that shall be | 5 | | added and then subtracted on the Illinois income tax return of | 6 | | a taxpayer, subject to Section 203 of the Illinois Income Tax | 7 | | Act, from federal adjusted gross income or federal taxable | 8 | | income in computing Illinois base income shall be the interest | 9 | | net of any bond premium amortization.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
|
|