Full Text of HB2097 97th General Assembly
HB2097ham001 97TH GENERAL ASSEMBLY | Rep. Adam Brown Filed: 3/15/2011
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| 1 | | AMENDMENT TO HOUSE BILL 2097
| 2 | | AMENDMENT NO. ______. Amend House Bill 2097 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Finance Authority Act is amended | 5 | | by changing Sections 801-15, 810-20, 840-5, and 840-20 as | 6 | | follows:
| 7 | | (20 ILCS 3501/801-15)
| 8 | | Sec. 801-15.
There is hereby created a body politic and | 9 | | corporate to be
known
as the Illinois Finance Authority. The | 10 | | exercise of the powers conferred by law
shall be an essential | 11 | | public function. The Authority shall consist of 15
members, who | 12 | | shall be appointed by the Governor, with the advice and consent | 13 | | of
the Senate. Upon the appointment of the Board and every 2 | 14 | | years thereafter,
the chairperson of the Authority shall be | 15 | | selected by the Governor to serve as
chairperson for two years.
| 16 | | Appointments to the Authority shall be persons of recognized |
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| 1 | | ability and
experience in one or more of the following areas: | 2 | | economic development,
finance, banking, industrial | 3 | | development, small business management, real
estate
| 4 | | development, housing, health facilities financing, local | 5 | | government financing,
community development, venture finance, | 6 | | construction , and labor relations , agribusiness, and | 7 | | production agriculture .
At the time of appointment, the | 8 | | Governor shall designate 5 members to serve
until the third | 9 | | Monday in July 2005, 5 members to serve until the third Monday
| 10 | | in July 2006 and 5 members to serve until the third Monday in | 11 | | July 2007.
Thereafter, appointments shall be for 3-year terms. | 12 | | On or after the effective date of this amendatory Act of the | 13 | | 97th General Assembly, no fewer than 2 members of or 2 | 14 | | appointments to the Authority, or a combination thereof, shall | 15 | | be persons of recognized ability and experience in agribusiness | 16 | | or production agriculture; provided, however, that in the event | 17 | | a member of recognized ability and experience in agribusiness | 18 | | or production agriculture resigns, becomes incapacitated, or | 19 | | is otherwise unable to discharge his or her duties as a member | 20 | | of the Authority, such vacancy or inability to serve shall not | 21 | | otherwise adversely affect the requirements for a quorum, nor | 22 | | prohibit the Authority from exercising its powers conferred by | 23 | | law during the time of such vacancy or inability to act. A | 24 | | member shall serve until
his or her successor shall be | 25 | | appointed and have qualified for office by filing
the oath and | 26 | | bond.
Members of the Authority shall not be entitled to |
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| 1 | | compensation for their
services as members, but shall be | 2 | | entitled to reimbursement for all necessary
expenses incurred | 3 | | in connection with the performance of their duties as
members.
| 4 | | The Governor may remove any member of the Authority in case of | 5 | | incompetence,
neglect of duty, or malfeasance in office, after | 6 | | service on him of a copy of
the
written charges against him and | 7 | | an opportunity to be publicly heard in person
or
by counsel in | 8 | | his own defense upon not less than 10 days' notice.
From | 9 | | nominations received from the Governor, the members of the | 10 | | Authority shall
appoint an Executive Director who shall be a | 11 | | person knowledgeable in the areas
of financial markets and | 12 | | instruments, to hold office for a one-year term. The
Executive | 13 | | Director shall be the chief administrative and operational | 14 | | officer of
the Authority and shall direct and supervise its | 15 | | administrative affairs and
general management and perform such | 16 | | other duties as may be prescribed from time
to time by the | 17 | | members and shall receive compensation fixed by the Authority.
| 18 | | The Executive Director or any committee of the members may | 19 | | carry out such
responsibilities of the members as the members | 20 | | by resolution may delegate. The
Executive Director shall attend | 21 | | all meetings of the Authority; however, no
action of the | 22 | | Authority shall be invalid on account of the absence of the
| 23 | | Executive Director from a meeting. The Authority may engage the | 24 | | services of
such other agents and employees, including | 25 | | attorneys, appraisers, engineers,
accountants, credit analysts | 26 | | and other consultants, as it may deem advisable
and may |
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| 1 | | prescribe their duties and fix their compensation.
The | 2 | | Authority may appoint Advisory Councils to (1) assist in the | 3 | | formulation of
policy goals and objectives, (2) assist in the | 4 | | coordination of the delivery of
services, (3) assist in | 5 | | establishment of funding priorities for the various
activities | 6 | | of the Authority, and (4) target the activities of the | 7 | | Authority to
specific geographic regions.
There may be an | 8 | | Advisory Council on Economic Development. The Advisory Council
| 9 | | shall consist of no more than 12 members, who shall serve at | 10 | | the pleasure of
the Authority. Members of the Advisory Council | 11 | | shall receive no compensation
for
their services, but may be | 12 | | reimbursed for expenses incurred with their service
on the | 13 | | Advisory Council.
| 14 | | (Source: P.A. 93-205, eff. 1-1-04.)
| 15 | | (20 ILCS 3501/810-20)
| 16 | | Sec. 810-20. Powers and Duties; Illinois Venture | 17 | | Investment Fund Limits. The
Authority shall invest and reinvest | 18 | | the Fund and the income, thereof, in the
following ways:
| 19 | | (a) To make a direct investment in qualified securities | 20 | | issued by
enterprises
and to dispose of those securities within | 21 | | 10 years after the date of the direct
investment as determined | 22 | | by the Authority for the purpose of providing venture
capital | 23 | | or seed capital, provided that the investment shall not exceed | 24 | | 49% of
the estimated cost of development, testing, and initial | 25 | | production and
marketing
and associated working capital for the |
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| 1 | | technology, product, process, or
invention, or $750,000, | 2 | | whichever is less;
| 3 | | (b) To enter into written agreements or contracts | 4 | | (including limited
partnership agreements) with one or more | 5 | | professional investors or one or more
seed capital investors, | 6 | | if any, for the purpose of establishing a pool of funds
to be | 7 | | used exclusively as venture capital or seed capital | 8 | | investments. The
Authority shall not invest more than | 9 | | $2,000,000 in a single pool of funds or
affiliated pools of | 10 | | funds.
The agreement or contract shall provide for the pool of | 11 | | funds to be managed by
a professional investor. The manager may | 12 | | be the general partner of a limited
partnership of which the | 13 | | Authority is a limited partner.
The agreement or contract may | 14 | | provide for reimbursement of expenses of, and
payment of a fee | 15 | | to, the manager. The agreement or contract may also provide
for | 16 | | payment to the manager of a percentage, not to exceed 40% | 17 | | (computed on an
annual basis), of cash and other property | 18 | | payable to the Authority as its
pro-rata share of distributions | 19 | | to investors in the pool of funds, provided
that (i)
no amount | 20 | | shall be received by the manager upon sale or other disposition | 21 | | of
qualified investments in enterprises until recovery by the | 22 | | Authority of its
investment and upon liquidation or withdrawal | 23 | | of the Authority from the pool of
funds, the manager shall be | 24 | | obligated to refund any amount received by it from
such | 25 | | percentage if necessary to allow the Authority to recover its | 26 | | investment
or
(ii) the terms of payment of cash and other |
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| 1 | | property to the Authority are no
less favorable to the | 2 | | Authority than payments to other seed capital investors
(other | 3 | | than the manager) who are parties to the agreement or contract.
| 4 | | (c) To make co-venture investments by entering into | 5 | | agreements with one or
more
professional investors or one or | 6 | | more seed capital investors, if any, who have
formally agreed | 7 | | to invest at least 50% as much as the Authority invests in the
| 8 | | enterprise, for the purpose of providing venture capital or | 9 | | seed capital; but
no more than $1,000,000 shall be invested by | 10 | | the Authority in the qualified
securities of a single | 11 | | enterprise. A total of not more than $1,500,000 may be
invested | 12 | | in the securities of a single enterprise, if the Authority | 13 | | shall find,
after the initial investment by the Authority, that | 14 | | additional investments in
the enterprise are necessary to | 15 | | protect or enhance the initial investment of
the
Authority.
| 16 | | Each co-venture investment agreement shall provide that the | 17 | | Authority will
recover its investment before or simultaneously | 18 | | with any distribution to
participating professional investors | 19 | | or seed capital investors. The Authority
and participating | 20 | | professional investors and seed capital investors shall share
| 21 | | ratably in the profits earned in any form on the co-venture | 22 | | investment, but the
Authority may, at its discretion, agree to | 23 | | pay to a participating professional
investor a percentage, not | 24 | | to exceed 40% (computed on an annual basis), of cash
and other | 25 | | property payable to the Authority as its pro-rata share of
| 26 | | distributions to investors in the pool of funds, provided that |
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| 1 | | (i) no amount
shall be received by the participating | 2 | | professional investor upon sale or other
disposition of | 3 | | qualified investments in the enterprises until recovery by the
| 4 | | Authority of its investment and upon liquidation or withdrawal | 5 | | of the Authority
from the pool of funds, the participating | 6 | | professional investor shall be
obligated to refund any amount | 7 | | received by it from such percentage if necessary
to allow the | 8 | | Authority to recover its investment or (ii) the terms of | 9 | | payment
of cash and other property to the Authority are no less | 10 | | favorable to the
Authority
than payments to other seed capital | 11 | | investors or professional investors (other
than the | 12 | | professional investor) who are parties to the agreement or | 13 | | contract;
| 14 | | (d) To purchase qualified securities of certified | 15 | | development corporations
created under
Section 503 of the | 16 | | federal Small Business Administration Act,
including the | 17 | | Illinois Small Business Growth Corporation, for the purpose of
| 18 | | making loans to enterprises that have the potential to create | 19 | | substantial
employment within the State per dollar invested by | 20 | | the Authority, provided that
the investment does not exceed 25% | 21 | | of the total investment in each corporation
at the time the | 22 | | investment is approved by the Authority. Investment by the
| 23 | | Authority in the Illinois Small Business Growth Corporation is | 24 | | not limited by
the foregoing provision;
| 25 | | (e) To purchase qualified securities of small business | 26 | | investment companies
and
minority enterprise small business |
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| 1 | | investment corporations certified by the
federal Small | 2 | | Business Administration which are committed to making 60% of
| 3 | | their
investments in the State, provided that investments from | 4 | | the Fund do not exceed
25% of the total investment in these | 5 | | entities at the time the investment is
approved by the | 6 | | Authority;
| 7 | | (f) To make the investments of any funds held in reserves | 8 | | or sinking funds,
or any funds not required for immediate | 9 | | disbursement, as may be lawful
investments
for fiduciaries in | 10 | | the State;
| 11 | | (g) To facilitate and promote the acquisition and | 12 | | revitalization of existing
manufacturing enterprises by | 13 | | developing and maintaining a list of firms, or
divisions | 14 | | thereof, located within the State that are available for | 15 | | purchase,
merger, or acquisition in response to a request from | 16 | | the General Assembly. As such information is outside the | 17 | | knowledge of the Authority and not otherwise readily obtained, | 18 | | the list shall be created from information provided by third | 19 | | parties, including, but not limited to, investment bankers, | 20 | | commercial bankers, trade associations, chambers of commerce, | 21 | | and similar institutions . The list may shall be made available | 22 | | at such charges as the
Authority may determine to all | 23 | | interested persons and institutions upon
request. No firm shall | 24 | | appear on the list without its prior written permission.
The | 25 | | list
may contain such additional financial, technical, market | 26 | | and other information
as may be supplied by the listed firm. |
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| 1 | | The Authority shall bear no
responsibility for the accuracy of | 2 | | the information contained on the list, and
each listed firm | 3 | | shall hold the Authority harmless against any claim of
| 4 | | inaccuracy.
Enterprises supported by investments from the Fund | 5 | | shall receive consideration
by the Authority in the allocation | 6 | | of loans to be insured or loans to be made
from the proceeds of | 7 | | bonds to be insured by the Industrial Revenue Bond
Insurance | 8 | | Fund established under this Article, and the
Authority shall | 9 | | coordinate its activities under the 2 programs.
| 10 | | (Source: P.A. 93-205, eff. 1-1-04.)
| 11 | | (20 ILCS 3501/840-5)
| 12 | | Sec. 840-5. The Authority shall have the following powers:
| 13 | | (a) To fix and revise from time to time and charge and | 14 | | collect rates, rents,
fees and charges for the use of and for | 15 | | the services furnished or to be
furnished by a project or other | 16 | | health facilities owned, financed or refinanced
by the | 17 | | Authority or any portion thereof and to contract with any | 18 | | person,
partnership, association or corporation or other body, | 19 | | public or private, in
respect thereto; to coordinate its | 20 | | policies and procedures and cooperate with
recognized health | 21 | | facility rate setting mechanisms which may now or hereafter
be | 22 | | established.
| 23 | | (b) To establish rules and regulations for the use of a | 24 | | project or other
health
facilities owned, financed or | 25 | | refinanced by the Authority or any portion
thereof
and to |
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| 1 | | designate a participating health institution as its agent to | 2 | | establish
rules and regulations for the use of a project or | 3 | | other health facilities owned
by the Authority undertaken for | 4 | | that participating health institution.
| 5 | | (c) To establish or contract with others to carry out on | 6 | | its behalf a health
facility project cost estimating service | 7 | | and to make this service available on
all projects to provide | 8 | | expert cost estimates and guidance to the participating
health | 9 | | institution and to the Authority. In order to implement this | 10 | | service
and, through it, to contribute to cost containment, the | 11 | | Authority shall have
the power to require such reasonable | 12 | | reports and documents from health facility
projects as may be | 13 | | required for this service and for the development of cost
| 14 | | reports and guidelines. The Authority may appoint a Technical | 15 | | Committee on
Health Facility Project Costs and Cost | 16 | | Containment.
| 17 | | (d) To make mortgage or other secured or unsecured loans to | 18 | | or for the
benefit
of any participating health institution for | 19 | | the cost of a project in accordance
with an agreement between | 20 | | the Authority and the participating health
institution; | 21 | | provided that no such loan shall exceed the total cost of the
| 22 | | project as determined by the participating health institution | 23 | | and approved by
the Authority; provided further that such loans | 24 | | may be made to any entity
affiliated with a participating | 25 | | health institution if the proceeds of such loan
are made | 26 | | available to or applied for the benefit of such participating |
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| 1 | | health
institution.
| 2 | | (e) To make mortgage or other secured or unsecured loans to | 3 | | or for the
benefit of a participating health institution in | 4 | | accordance with an agreement
between
the Authority and the | 5 | | participating health institution to refund outstanding
| 6 | | obligations, loans, indebtedness or advances issued, made, | 7 | | given or incurred by
such participating health institution for | 8 | | the cost of a project; including the
function to issue bonds | 9 | | and make loans to or for the benefit of a participating
health | 10 | | institution to refinance indebtedness incurred by such | 11 | | participating
health institution in projects undertaken and | 12 | | completed or for other health
facilities acquired prior to or | 13 | | after the enactment of this Act when the
Authority finds that | 14 | | such refinancing is in the public interest, and either
| 15 | | alleviates a financial hardship of such participating health | 16 | | institution, or is
in connection with other financing by the | 17 | | Authority for such participating
health institution or may be | 18 | | expected to result in a lessened cost of patient
care and a | 19 | | saving to third parties, including government, and to others | 20 | | who
must pay for care, or any combination thereof; provided | 21 | | further that such loans
may
be made to any entity affiliated | 22 | | with a participating health institution if the
proceeds of such | 23 | | loan are made available to or applied for the benefit of such
| 24 | | participating health institution.
| 25 | | (f) To mortgage all or any portion of a project or other | 26 | | health facilities
and the property on which any such project or |
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| 1 | | other health facilities are
located
whether owned or thereafter | 2 | | acquired, and to assign or pledge mortgages, deeds
of trust, | 3 | | indentures of mortgage or trust or similar instruments, notes, | 4 | | and
other securities of participating health institutions to | 5 | | which or for the
benefit of which the Authority has made loans | 6 | | or of entities affiliated with
such institutions and the | 7 | | revenues therefrom, including payments or income from
any | 8 | | thereof owned or held by the Authority, for the benefit of the | 9 | | holders of
bonds issued to finance such project or health | 10 | | facilities or issued to refund
or refinance outstanding | 11 | | obligations, loans, indebtedness or advances of
participating | 12 | | health institutions as permitted by this Act.
| 13 | | (g) To lease to a participating health institution the | 14 | | project being
financed or refinanced or other health facilities | 15 | | conveyed to the Authority in
connection with such financing or | 16 | | refinancing, upon such terms and conditions
as the
Authority | 17 | | shall deem proper, and to charge and collect rents therefor and | 18 | | to
terminate any such lease upon the failure of the lessee to | 19 | | comply with any of
the obligations thereof; and to include in | 20 | | any such lease, if desired,
provisions that the lessee thereof | 21 | | shall have options to renew the lease for
such period or | 22 | | periods and at such rent as shall be determined by the | 23 | | Authority
or to purchase any or all of the health facilities or | 24 | | that upon payment of all
of the indebtedness incurred by the | 25 | | Authority for the financing of such project
or health | 26 | | facilities or for refunding outstanding obligations, loans,
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| 1 | | indebtedness or advances of a participating health | 2 | | institution, then the
Authority may convey any or all of the | 3 | | project or such other health facilities
to the lessee or | 4 | | lessees thereof with or without consideration.
| 5 | | (h) To make studies of needed health facilities that could | 6 | | not sustain a
loan
were it made under this Act and to recommend | 7 | | remedial action to the General
Assembly; to do the same with | 8 | | regard to any laws or regulations that prevent
health | 9 | | facilities from benefiting from this Act.
| 10 | | (i) To assist the Department of Commerce and Economic | 11 | | Opportunity to
establish and implement a program to assist | 12 | | health facilities to identify and
arrange
financing for energy | 13 | | conservation projects in buildings and facilities owned or
| 14 | | leased by health facilities.
| 15 | | (j) To assist the Department of Human Services in | 16 | | establishing a low
interest
loan program to help child care | 17 | | centers and family day care homes serving
children of low | 18 | | income families under
Section 22.4 of the Children and Family
| 19 | | Services Act. The Authority, on or after the effective date of | 20 | | this amendatory Act of the 97th General Assembly, shall be | 21 | | authorized to convert existing agreements for financial aid in | 22 | | accordance with this subsection to permanent capital to | 23 | | leverage additional private capital and establish a revolving | 24 | | loan fund for nonprofit corporations providing human services | 25 | | under contract to the State. | 26 | | (k) To assist the Department of Public Health and nursing |
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| 1 | | homes in undertaking nursing home conversion projects in | 2 | | accordance with the Older Adult Services Act.
| 3 | | (Source: P.A. 93-205, eff. 1-1-04; 93-1031, eff. 8-27-04.)
| 4 | | (20 ILCS 3501/840-20)
| 5 | | Sec. 840-20.
It is the intent and purpose of this Act that | 6 | | the exercise by
the Authority of the powers granted to it shall | 7 | | be in all respects for the
benefit of the people of this State | 8 | | to assist them to provide needed health
facilities of the | 9 | | number, size, type, distribution, and operation that will
| 10 | | assure admission and care of high quality to all who need it. | 11 | | To this end, the
Authority is charged with the responsibility | 12 | | to identify and study all projects
which are determined by | 13 | | health planning agencies to be needed but which could
not | 14 | | sustain a loan were such to be made to it under this Act. The | 15 | | Authority
shall, following such study, formulate and recommend | 16 | | to the General Assembly,
such amendments to this and other | 17 | | Acts, and such other specific measures as
grants, loan | 18 | | guarantees, interest subsidies or other actions as may be | 19 | | provided
for by the State which actions would render the | 20 | | construction and operation of
such needed health facility | 21 | | feasible and in the public interest. Further, the
Authority is | 22 | | charged with responsibility to respond to any requests from the | 23 | | General Assembly to identify and study any laws or
regulations | 24 | | which it finds handicaps or bars a needed health facility from
| 25 | | participating in the benefits of this Act and to recommend to |
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| 1 | | the General
Assembly such actions as will remedy such | 2 | | situation.
| 3 | | (Source: P.A. 93-205, eff. 1-1-04.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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