Full Text of SB0393 99th General Assembly
SB0393sam001 99TH GENERAL ASSEMBLY | Sen. John J. Cullerton Filed: 1/9/2017
| | 09900SB0393sam001 | | LRB099 03112 HLH 52293 a |
|
| 1 | | AMENDMENT TO SENATE BILL 393
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 393 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Municipal Code is amended by | 5 | | adding Division 13 to Article 8 as follows: | 6 | | (65 ILCS 5/Art. 8 Div. 13 heading new) | 7 | | DIVISION 13. ASSIGNMENT OF RECEIPTS | 8 | | (65 ILCS 5/8-13-5 new) | 9 | | Sec. 8-13-5. Definitions. As used in this Article: | 10 | | "Assignment agreement" means an agreement between a | 11 | | transferring unit and an issuing entity for the conveyance of | 12 | | all or part of any revenues, taxes, or grant funds received by | 13 | | the transferring unit from a State entity. | 14 | | "Conveyance" means an assignment, sale, transfer, or other | 15 | | conveyance. |
| | | 09900SB0393sam001 | - 2 - | LRB099 03112 HLH 52293 a |
|
| 1 | | "Deposit account" means a designated escrow account | 2 | | established by an issuing entity at a trust company or bank | 3 | | having trust powers for the deposit of transferred receipts | 4 | | under an assignment agreement. | 5 | | "Issuing entity" means (i) a corporation, trust or other | 6 | | entity that has been established for the limited purpose of | 7 | | issuing obligations for the benefit of a transferring unit, or | 8 | | (ii) a bank or trust company in its capacity as trustee for | 9 | | obligations issued by such bank or trust company for the | 10 | | benefit of a transferring unit. | 11 | | "State entity" means the State Comptroller, the State | 12 | | Treasurer, or the Illinois Department of Revenue. | 13 | | "Transferred receipts" means all or part of any revenues, | 14 | | taxes, or grant funds received from a State entity that have | 15 | | been conveyed by a transferring unit under an assignment | 16 | | agreement. | 17 | | "Transferring unit" means a home rule municipality located | 18 | | in the State. | 19 | | (65 ILCS 5/8-13-10 new) | 20 | | Sec. 8-13-10. Assignment of receipts. | 21 | | (a) Any transferring unit which receives revenues, taxes, | 22 | | or grant funds from a State entity may (to the extent not | 23 | | prohibited by any applicable statute, regulation, rule, or | 24 | | grant agreement governing the use of such revenues, taxes, or | 25 | | grant funds) authorize, by ordinance, the conveyance of all or |
| | | 09900SB0393sam001 | - 3 - | LRB099 03112 HLH 52293 a |
|
| 1 | | any portion of such revenues, taxes, or grant funds to an | 2 | | issuing entity. Any conveyance of transferred receipts shall: | 3 | | (i) be made pursuant to an assignment agreement in exchange for | 4 | | the net proceeds of obligations issued by the issuing entity | 5 | | for the benefit of the transferring unit and shall, for all | 6 | | purposes, constitute an absolute conveyance of all right, | 7 | | title, and interest therein; (ii) not be deemed a pledge or | 8 | | other security interest for any borrowing by the transferring | 9 | | unit; (iii) be valid, binding, and enforceable in accordance | 10 | | with the terms thereof and of any related instrument, | 11 | | agreement, or other arrangement, including any pledge, grant of | 12 | | security interest, or other encumbrance made by the issuing | 13 | | entity to secure any obligations issued by the issuing entity | 14 | | for the benefit of the transferring unit; and (iv) not be | 15 | | subject to disavowal, disaffirmance, cancellation, or | 16 | | avoidance by reason of insolvency of any party, lack of | 17 | | consideration, or any other fact, occurrence, or State law or | 18 | | rule. On and after the effective date of the conveyance of the | 19 | | transferred receipts, the transferring unit shall have no | 20 | | right, title or interest in or to the transferred receipts | 21 | | conveyed and the transferred receipts so conveyed shall be the | 22 | | property of the issuing entity to the extent necessary to pay | 23 | | the obligations issued by the issuing entity for the benefit of | 24 | | the transferring unit, and shall be received, held, and | 25 | | disbursed by the issuing entity in a trust fund outside the | 26 | | treasury of the transferring unit. An assignment agreement may |
| | | 09900SB0393sam001 | - 4 - | LRB099 03112 HLH 52293 a |
|
| 1 | | provide for the periodic reconveyance to the transferring unit | 2 | | of amounts of transferred receipts remaining after the payment | 3 | | of the obligations issued by the issuing entity for the benefit | 4 | | of the transferring unit. | 5 | | (b) In connection with any conveyance of transferred | 6 | | receipts, the transferring unit is authorized to direct the | 7 | | applicable State entity to deposit or cause to be deposited any | 8 | | amount of such transferred receipts into a deposit account in | 9 | | order to secure the obligations issued by the issuing entity | 10 | | for the benefit of the transferring unit. Where the | 11 | | transferring unit states that such direction is irrevocable, | 12 | | the direction shall be treated by the applicable State entity | 13 | | as irrevocable with respect to the transferred receipts | 14 | | described in such direction. Each State entity shall comply | 15 | | with the terms of any such direction received from a | 16 | | transferring unit and shall execute and deliver such | 17 | | acknowledgments and agreements, including escrow and similar | 18 | | agreements, as the transferring unit may require to effectuate | 19 | | the deposit of transferred receipts in accordance with the | 20 | | direction of the transferring unit. | 21 | | (c) Not later than the date of issuance by an issuing | 22 | | entity of any obligations secured by collections of transferred | 23 | | receipts, a certified copy of the ordinance authorizing the | 24 | | conveyance of the right to receive the transferred receipts, | 25 | | together with executed copies of the applicable assignment | 26 | | agreement and the agreement providing for the establishment of |
| | | 09900SB0393sam001 | - 5 - | LRB099 03112 HLH 52293 a |
|
| 1 | | the deposit account, shall be filed with the State entity | 2 | | having custody of the transferred receipts. | 3 | | (65 ILCS 5/8-13-15 new) | 4 | | Sec. 8-13-15. Pledges and agreements of the State. The | 5 | | State of Illinois pledges to and agrees with each transferring | 6 | | unit and issuing unit that the State will not limit or alter | 7 | | the rights and powers vested in the State entities by this | 8 | | Article with respect to the disposition of transferred receipts | 9 | | so as to impair the terms of any contract, including any | 10 | | assignment agreement, made by the transferring unit with the | 11 | | issuing entity or any contract executed by the issuing entity | 12 | | in connection with the issuance of obligations by the issuing | 13 | | entity for the benefit of the transferring unit until all | 14 | | requirements with respect to the deposit by such State entity | 15 | | of transferred receipts for the benefit of such issuing entity | 16 | | have been fully met and discharged. In addition, the State | 17 | | pledges to and agrees with each transferring unit and each | 18 | | issuing entity that the State will not limit or alter the basis | 19 | | on which transferred receipts are to be paid to the issuing | 20 | | entity as provided in this Article, or the use of such funds, | 21 | | so as to impair the terms of any such contract. Each | 22 | | transferring unit and issuing entity is authorized to include | 23 | | these pledges and agreements of the State in any contract | 24 | | executed and delivered as described in this Article. In no way | 25 | | shall the pledge and agreements of the State be interpreted to |
| | | 09900SB0393sam001 | - 6 - | LRB099 03112 HLH 52293 a |
|
| 1 | | construe the State as a guarantor of any debt or obligation | 2 | | subject to an assignment agreement under this Division. | 3 | | (65 ILCS 5/8-13-20 new) | 4 | | Sec. 8-13-20. Home rule. A home rule unit may not assign | 5 | | receipts or enter into assignment agreements in a manner | 6 | | inconsistent with the provisions of this Article. This Section | 7 | | is a limitation under subsection (i) of Section 6 of
Article | 8 | | VII of the Illinois Constitution on the concurrent exercise by | 9 | | home rule units of
powers and functions exercised by the State.
| 10 | | Section 99. Effective date. If and only if all of the | 11 | | following bills of the 99th General Assembly become law: Senate | 12 | | Bills 17, 245, 262, 263, 284, 305, 390, 523, 584, 1110, and | 13 | | 2053, then this Act takes effect upon becoming law; however, | 14 | | this Act does not take effect at all unless all of the | 15 | | following bills of the 99th General Assembly become law: Senate | 16 | | Bills 17, 245, 262, 263, 284, 305, 390, 523, 584, 1110, and | 17 | | 2053.".
|
|