Full Text of HB5518 094th General Assembly
HB5518 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB5518
Introduced 1/27/2006, by Rep. John E. Bradley SYNOPSIS AS INTRODUCED: |
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Creates the Southern Illinois Economic Development Authority Act. Creates the Southern Illinois Economic Development Authority in Franklin, Perry, Randolph, Jackson, Williamson, Saline, Gallatin, Union, Johnson, Pope, Hardin, Alexander, Pulaski, and Massac Counties in order to promote economic development within those counties. Contains provisions concerning the powers and duties of the Authority. Allows the Authority to acquire, own, sell, lease, or otherwise dispose of interests in real property and to issue bonds, notes, or other evidences of indebtedness for certain purposes in an aggregate amount not to exceed $250,000,000. Provides that the Authority shall be governed by a 21-member board. Contains other provisions. Effective immediately.
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A BILL FOR
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HB5518 |
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LRB094 18110 HLH 54305 b |
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| AN ACT in relation to economic development.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Southern Illinois
Economic Development Authority
Act .
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| Section 5. Findings. The General Assembly determines and | 7 |
| declares the
following:
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| (1) that labor surplus areas currently exist in Southern | 9 |
| Illinois;
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| (2) that the economic burdens resulting from involuntary | 11 |
| unemployment fall,
in part, upon the State in
the form of | 12 |
| increased need for public assistance and reduced tax revenues | 13 |
| and,
in the event that the
unemployed worker and his or her | 14 |
| family migrate elsewhere to find work, the
burden may also fall | 15 |
| upon
the municipalities and other taxing districts within the | 16 |
| areas of unemployment
in the form of reduced tax
revenues, | 17 |
| thereby endangering their financial ability to support | 18 |
| necessary
governmental services for their
remaining | 19 |
| inhabitants;
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| (3) that the State has a responsibility to help create a | 21 |
| favorable climate
for new and improved job
opportunities for | 22 |
| its citizens by encouraging the development of commercial and
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| service businesses and
industrial and manufacturing plants | 24 |
| within Southern Illinois;
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| (4) that a lack of decent housing contributes to urban | 26 |
| blight, crime,
anti-social behavior, disease, a higher
need for | 27 |
| public assistance, reduced tax revenues, and the migration of | 28 |
| workers
and their families away from
areas which fail to offer | 29 |
| adequate, decent, and affordable housing;
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| (5) that decent, affordable housing is a necessary | 31 |
| ingredient of life
affording each citizen basic human
dignity, | 32 |
| a sense of self-worth, confidence, and a firm foundation upon |
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| which to
build a family and educate
children;
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| (6) that in order to foster civic and neighborhood pride, | 3 |
| citizens require
access to educational institutions,
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| recreation, parks and open spaces, entertainment, sports, a | 5 |
| reliable
transportation network, cultural
facilities, and | 6 |
| theaters; and
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| (7) that the main purpose of this Act is to promote | 8 |
| industrial, commercial,
residential, service,
transportation, | 9 |
| and recreational activities and facilities, thereby reducing
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| the evils attendant upon
unemployment and enhancing the public | 11 |
| health, safety, morals, happiness, and
general welfare of the | 12 |
| State.
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| Section 10. Definitions. In this Act:
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| "Authority" means the Southern Illinois Economic | 15 |
| Development Authority.
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| "Governmental agency" means any federal, State, or local | 17 |
| governmental body
and any agency or
instrumentality thereof, | 18 |
| corporate or otherwise.
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| "Person" means any natural person, firm, partnership, | 20 |
| corporation, both
domestic and foreign,
company, association | 21 |
| or joint stock association and includes any trustee,
receiver, | 22 |
| assignee or personal
representative thereof.
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| "Revenue bond" means any bond issued by the Authority, the | 24 |
| principal and
interest of which is payable
solely from revenues | 25 |
| or income derived from any project or activity of the
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| Authority.
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| "Board" means the Board of Directors of the Southern | 28 |
| Illinois Economic
Development Authority.
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| "Governor" means the Governor of the State of Illinois.
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| "City" means any city, village, incorporated town, or | 31 |
| township within the
geographical territory of the
Authority.
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| "Industrial project" means the following:
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| (1) a capital project, including one or more buildings and | 34 |
| other
structures, improvements,
machinery and equipment | 35 |
| whether or not on the same site or sites now existing
or |
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| hereafter acquired,
suitable for use by any manufacturing, | 2 |
| industrial, research, transportation or
commercial enterprise
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| including but not limited to use as a factory, mill, processing | 4 |
| plant, assembly
plant, packaging plant,
fabricating plant, | 5 |
| ethanol plant, office building, industrial distribution
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| center, warehouse,
repair, overhaul or service
facility, | 7 |
| freight terminal, research facility, test facility, railroad
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| facility, port facility, solid waste and wastewater
treatment | 9 |
| and disposal sites and other pollution control facilities, | 10 |
| resource
or waste reduction, recovery,
treatment and disposal | 11 |
| facilities, and including also the sites thereof and
other | 12 |
| rights in land therefore
whether improved or unimproved, site | 13 |
| preparation and landscaping and all
appurtenances and | 14 |
| facilities
incidental thereto such as utilities, access roads, | 15 |
| railroad sidings, truck
docking and similar facilities,
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| parking facilities, dockage, wharfage, railroad roadbed, | 17 |
| track, trestle, depot,
terminal, switching and
signaling | 18 |
| equipment or related equipment and other improvements | 19 |
| necessary or
convenient thereto; or
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| (2) any land, buildings, machinery or equipment comprising | 21 |
| an addition to or
renovation,
rehabilitation or improvement of | 22 |
| any existing capital project.
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| "Commercial project" means any project, including, but not | 24 |
| limited to, one or
more buildings and other
structures, | 25 |
| improvements, machinery, and equipment, whether or not on the | 26 |
| same
site or sites now existing
or hereafter acquired, suitable | 27 |
| for use by any retail or wholesale concern,
distributorship, or | 28 |
| agency.
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| "Project" means an industrial, housing, residential, | 30 |
| commercial, or service
project, or any combination
thereof, | 31 |
| provided that all uses fall within one of the categories | 32 |
| described
above. Any project automatically
includes all site | 33 |
| improvements and new construction involving sidewalks,
sewers, | 34 |
| solid waste and
wastewater treatment and disposal sites and | 35 |
| other pollution control facilities,
resource or waste | 36 |
| reduction,
recovery, treatment and disposal facilities, parks, |
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| open spaces, wildlife
sanctuaries, streets, highways, and
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| runways.
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| "Lease agreement" means an agreement in which a project | 4 |
| acquired by the
Authority by purchase, gift,
or lease is leased | 5 |
| to any person or corporation that will use, or cause the
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| project to be used, as a project,
upon terms providing for | 7 |
| lease rental payments at least sufficient to pay, when due, all | 8 |
| principal of and
interest and premium, if any, on any bonds, | 9 |
| notes, or other evidences of indebtedness of the Authority,
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| issued with respect to the project, providing for the | 11 |
| maintenance, insurance, and operation of the project on
terms | 12 |
| satisfactory to the Authority and providing for disposition of | 13 |
| the project upon termination of the lease
term, including | 14 |
| purchase options or abandonment of the premises, with other | 15 |
| terms as may be deemed
desirable by the Authority.
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| "Loan agreement" means any agreement in which the Authority | 17 |
| agrees to loan
the proceeds of its bonds,
notes, or other | 18 |
| evidences of indebtedness, issued with respect to a project, to
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| any person or corporation
which will use or cause the project | 20 |
| to be used as a project, upon terms
providing for loan | 21 |
| repayment
installments at least sufficient to pay, when due, | 22 |
| all principal of and
interest and premium, if any, on any
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| bonds, notes, or other evidences of indebtedness of the | 24 |
| Authority issued with
respect to the project,
providing for | 25 |
| maintenance, insurance, and operation of the project on terms
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| satisfactory to the Authority
and providing for other terms | 27 |
| deemed advisable by the Authority.
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| "Financial aid" means the expenditure of Authority funds or | 29 |
| funds provided by
the Authority for the
development, | 30 |
| construction, acquisition or improvement of a project, through | 31 |
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issuance of revenue bonds,
notes, or other evidences of | 32 |
| indebtedness.
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| "Costs incurred in connection with
the development, | 34 |
| construction, acquisition or improvement of a
project" means | 35 |
| the following:
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| (1) the cost of purchase and construction of all lands and |
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| improvements in
connection therewith and
equipment and other | 2 |
| property, rights, easements, and franchises acquired which
are | 3 |
| deemed necessary for
the construction;
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| (2) financing charges;
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| (3) interest costs with respect to bonds, notes, and other | 6 |
| evidences of
indebtedness of the Authority
prior to and during | 7 |
| construction and for a period of 6 months thereafter;
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| (4) engineering and legal expenses; and
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| (5) the costs of plans, specifications, surveys, and | 10 |
| estimates of costs and
other expenses necessary or
incident to | 11 |
| determining the feasibility or practicability of any project,
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| together with such other expenses as
may be necessary or | 13 |
| incident to the financing, insuring, acquisition, and
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| construction of a specific project
and the placing of the same | 15 |
| in operation.
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| Section 15. Creation.
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| (a) There is created a political subdivision, body politic, | 18 |
| and municipal
corporation named the Southern
Illinois Economic | 19 |
| Development Authority. The territorial jurisdiction of the
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| Authority is that geographic
area within the boundaries of the | 21 |
| following counties: Franklin, Perry, Randolph, Jackson, | 22 |
| Williamson, Saline, Gallatin, Union, Johnson, Pope, Hardin, | 23 |
| Alexander, Pulaski, and Massac and any
navigable waters and
air | 24 |
| space located therein.
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| (b) The governing and administrative powers of the | 26 |
| Authority shall be vested
in a body consisting of 21
members as | 27 |
| follows:
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| (1) Ex officio member. The Director of Commerce and
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| Economic Opportunity, or
a designee of that Department, | 30 |
| shall serve as an ex officio member.
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| (2) Public members. Six members shall be appointed by | 32 |
| the Governor with the advice and
consent of the Senate. The | 33 |
| county board chairperson of the following counties
shall | 34 |
| each appoint one
member: Franklin, Perry, Randolph, | 35 |
| Jackson, Williamson, Saline, Gallatin, Union, Johnson, |
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| Pope, Hardin, Alexander, Pulaski, and Massac. All public | 2 |
| members shall reside within
the territorial
jurisdiction | 3 |
| of the Authority.
The public members shall be persons of | 4 |
| recognized ability and experience in one
or more of the | 5 |
| following
areas: economic development, finance, banking, | 6 |
| industrial development, state or
local government, | 7 |
| commercial agriculture, small
business management, real
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| estate development, community development, venture | 9 |
| finance, organized labor, or
civic or community
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| organization.
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| (c) 11 members shall constitute a quorum.
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| (d) The chairperson of the Authority shall be elected | 13 |
| annually by the Board and must be a public member that resides | 14 |
| within the territorial jurisdiction of the Authority.
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| (e) The terms of all initial members of the Authority shall | 16 |
| begin 30 days
after the effective date of this
Act.
Of the 6 | 17 |
| original public members appointed by the Governor, 2
shall | 18 |
| serve until the third Monday in January, 2008; 2 shall serve | 19 |
| until the
third Monday in January, 2009; 2 shall serve until | 20 |
| the third Monday in January,
2010. The initial terms of the | 21 |
| original public members appointed by the county board | 22 |
| chairpersons shall be determined by lot, according to the | 23 |
| following schedule: (i) 3 shall serve until the third Monday in | 24 |
| January, 2008, (ii) 3 shall serve until the third Monday in | 25 |
| January, 2009, (iii) 4 shall serve until the third Monday in | 26 |
| January, 2010, and (iv) 4 shall serve until the third Monday in | 27 |
| January, 2011. All successors to these original
public
members | 28 |
| shall be appointed by the original appointing authority and all | 29 |
| appointments made by the Governor shall be made with the advice | 30 |
| and consent of the Senate, pursuant to subsection (b), and | 31 |
| shall hold office for a term of 6 years
commencing the third | 32 |
| Monday in January of the year in which their term
commences, | 33 |
| except in the case of an appointment to fill a vacancy.
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| Vacancies occurring among the public members shall be filled | 35 |
| for the
remainder of the term. In case of
vacancy in a | 36 |
| Governor-appointed membership when the Senate is not in |
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| session,
the Governor may make a
temporary appointment until | 2 |
| the next meeting of the Senate when a person shall
be nominated | 3 |
| to fill the
office and, upon confirmation by the Senate, he or | 4 |
| she shall hold office during
the remainder of the term
and | 5 |
| until a successor is appointed and qualified. Members of the | 6 |
| Authority are
not entitled to
compensation for their services | 7 |
| as members but are entitled to reimbursement
for all necessary | 8 |
| expenses
incurred in connection with the performance of their | 9 |
| duties as members.
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| (f) The Governor may remove any public member of the | 11 |
| Authority appointed by the Governor or a predecessor Governor | 12 |
| in case of
incompetence, neglect of
duty, or malfeasance in | 13 |
| office. The chairperson of a county board may remove any public | 14 |
| member appointed by that chairperson or a predecessor county | 15 |
| board chairperson in case of incompetence, neglect of duty, or | 16 |
| malfeasance in office.
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| (g) The Board shall appoint an Executive Director who shall | 18 |
| have a
background in finance, including
familiarity with the | 19 |
| legal and procedural requirements of issuing bonds, real
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| estate, or economic
development and administration. The | 21 |
| Executive Director shall hold office at the
discretion of the | 22 |
| Board.
The Executive Director shall be the chief administrative | 23 |
| and operational
officer of the Authority, shall
direct and | 24 |
| supervise its administrative affairs and general management, | 25 |
| perform
such other duties as may
be prescribed from time to | 26 |
| time by the members, and receive compensation fixed
by the | 27 |
| Authority. The Department of Commerce and Economic Opportunity | 28 |
| shall pay
the compensation of the Executive Director from | 29 |
| appropriations received for
that purpose. The
Executive | 30 |
| Director shall attend all meetings of the Authority. However, | 31 |
| no
action of the Authority shall be
invalid on account of the | 32 |
| absence of the Executive Director from a meeting. The
Authority | 33 |
| may engage
the services of
the Illinois Finance Authority, | 34 |
| attorneys, appraisers, engineers, accountants,
credit | 35 |
| analysts, and other consultants if the Southern Illinois | 36 |
| Economic
Development Authority deems it advisable.
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| Section 20. Duty. All official acts of the Authority shall | 2 |
| require the
approval of at least 11 members. It
shall be the | 3 |
| duty of the Authority to promote development within the | 4 |
| geographic
confines of
Franklin, Perry, Randolph, Jackson, | 5 |
| Williamson, Saline, Gallatin, Union, Johnson, Pope, Hardin, | 6 |
| Alexander, Pulaski, and Massac
counties. The Authority shall | 7 |
| use the powers conferred upon it to assist in the
development, | 8 |
| construction,
and acquisition of industrial, commercial, | 9 |
| housing, or residential projects
within its territorial | 10 |
| jurisdiction.
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| Section 25. Powers.
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| (a) The Authority possesses all the powers of a body | 13 |
| corporate necessary and
convenient to accomplish
the purposes | 14 |
| of this Act, including, without any intended limitation upon | 15 |
| the
general powers hereby
conferred, the following powers:
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| (1) to enter into loans, contracts, agreements, and | 17 |
| mortgages in any
matter connected with any of
its corporate | 18 |
| purposes and to invest its funds;
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| (2) to sue and be sued;
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| (3) to utilize services of the Illinois Finance | 21 |
| Authority necessary to
carry out its purposes;
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| (4) to have and use a common seal and to alter the seal | 23 |
| at its discretion;
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| (5) to adopt all needful ordinances, resolutions, | 25 |
| bylaws, rules, and
regulations for the conduct of
its | 26 |
| business and affairs and for the management and use of the | 27 |
| projects
developed, constructed, acquired,
and improved in | 28 |
| furtherance of its purposes;
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| (6) to designate the fiscal year for the Authority;
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| (7) to accept and expend appropriations;
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| (8) to acquire, own, lease, sell, or otherwise dispose | 32 |
| of interests in and
to real property and
improvements | 33 |
| situated on that real property and in personal property | 34 |
| necessary
to fulfill the purposes of the
Authority;
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| (9) to engage in any activity or operation which is | 2 |
| incidental to and in
furtherance of efficient
operation to | 3 |
| accomplish the Authority's primary purpose;
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| (10) to acquire, own, construct, lease, operate, and | 5 |
| maintain bridges,
terminals, terminal facilities,
and port | 6 |
| facilities and to fix and collect just, reasonable, and
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| nondiscriminatory charges for the use of such
facilities. | 8 |
| These charges shall be used to defray the reasonable | 9 |
| expenses of
the Authority and to pay the
principal and | 10 |
| interest of any revenue bonds issued by the Authority;
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| (11) subject to any applicable condition imposed by | 12 |
| this Act, to locate,
establish and maintain a
public | 13 |
| airport, public airports, and public airport facilities | 14 |
| within its
corporate limits or within or upon any
body of | 15 |
| water adjacent thereto and to construct, develop, expand, | 16 |
| extend, and
improve any such airport or
airport facility; | 17 |
| and
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| (12) to have and exercise all powers and be subject to | 19 |
| all duties usually
incident to boards of
directors of | 20 |
| corporations.
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| (b) The Authority shall not issue any bonds relating to the | 22 |
| financing of a
project located within the
planning and | 23 |
| subdivision control jurisdiction of any municipality or county
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| unless: (i) notice, including a
description of the proposed | 25 |
| project and the financing for that project, is
submitted to the | 26 |
| corporate
authorities of the municipality or, in the case of a | 27 |
| proposed project in an
unincorporated area, to the county
board | 28 |
| and (ii) the corporate authorities of the municipality do not, | 29 |
| or the
county board does not, adopt a
resolution disapproving | 30 |
| the project within 45 days after receipt of the notice.
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| (c) If any of the powers set forth in this Act are | 32 |
| exercised within the
jurisdictional limits of any
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| municipality, all ordinances of the municipality remain in full | 34 |
| force and
effect and are controlling.
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| Section 30. Tax avoidance. Notwithstanding any other |
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| provision of law, the
Authority shall not enter into
any | 2 |
| agreement providing for the purchase and lease of tangible | 3 |
| personal
property which results in the
avoidance of taxation | 4 |
| under the Retailers' Occupation Tax Act, the Use Tax Act,
the | 5 |
| Service Use Tax Act,
or the Service Occupation Tax Act, without | 6 |
| the prior written consent of the
Governor.
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| Section 35. Bonds.
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| (a) The Authority, with the written approval of the | 9 |
| Governor, shall have the
continuing power to issue
bonds, | 10 |
| notes, or other evidences of indebtedness in an aggregate | 11 |
| amount not to
exceed $250,000,000 for the
following purposes: | 12 |
| (i) development, construction, acquisition, or improvement
of | 13 |
| projects, including those
established by business entities | 14 |
| locating or expanding property within the
territorial | 15 |
| jurisdiction of the
Authority; (ii) entering into venture | 16 |
| capital agreements with businesses
locating or expanding | 17 |
| within the
territorial jurisdiction of the Authority; (iii) | 18 |
| acquisition and improvement of
any property necessary and
| 19 |
| useful in connection therewith; and (iv) for the purposes of | 20 |
| the Employee
Ownership Assistance Act. For
the purpose of | 21 |
| evidencing the obligations of the Authority to repay any money
| 22 |
| borrowed, the Authority
may, pursuant to resolution, from time | 23 |
| to time, issue and dispose of its interest-bearing revenue | 24 |
| bonds,
notes, or other evidences of indebtedness and may also | 25 |
| from time to time issue and dispose of such bonds,
notes, or | 26 |
| other evidences of indebtedness to refund, at maturity, at a | 27 |
| redemption date or in advance of
either, any bonds, notes, or | 28 |
| other evidences of indebtedness pursuant to redemption | 29 |
| provisions or at any
time before maturity. All such bonds, | 30 |
| notes, or other evidences of indebtedness shall be payable | 31 |
| solely and
only from the revenues or income to be derived from | 32 |
| loans made with respect to projects, from the leasing
or sale | 33 |
| of the projects, or from any other funds available to the | 34 |
| Authority for such purposes. The bonds,
notes, or other | 35 |
| evidences of indebtedness may bear such date or dates, may |
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| mature at such time or times not
exceeding 40 years from their | 2 |
| respective dates, may bear interest at such rate or rates not | 3 |
| exceeding the
maximum rate permitted by the Bond Authorization | 4 |
| Act, may be in such form, may carry such registration
| 5 |
| privileges, may be executed in such manner, may be payable at | 6 |
| such place or places, may be made subject
to redemption in such | 7 |
| manner and upon such terms, with or without premium, as is | 8 |
| stated on the face
thereof, may be authenticated in such manner | 9 |
| and may contain such terms and
covenants as may be
provided by | 10 |
| an applicable resolution.
| 11 |
| (b) The holder or holders of any bonds, notes, or other | 12 |
| evidences of
indebtedness issued by the
Authority may bring | 13 |
| suits at law or proceedings in equity to compel the
performance | 14 |
| and observance by
any corporation or person or by the Authority | 15 |
| or any of its agents or employees
of any contract or covenant
| 16 |
| made with the holders of the bonds, notes, or other evidences | 17 |
| of indebtedness,
to compel such corporation,
person, the | 18 |
| Authority, and any of its agents or employees to perform any | 19 |
| duties
required to be performed
for the benefit of the holders | 20 |
| of the bonds, notes, or other evidences of
indebtedness by the | 21 |
| provision of the
resolution authorizing their issuance and to | 22 |
| enjoin the corporation, person,
the Authority, and any of its
| 23 |
| agents or employees from taking any action in conflict with any | 24 |
| contract or
covenant.
| 25 |
| (c) If the Authority fails to pay the principal of or | 26 |
| interest on any of the
bonds or premium, if any, as the
bond | 27 |
| becomes due, a civil action to compel payment may be instituted | 28 |
| in the
appropriate circuit court by
the holder or holders of | 29 |
| the bonds on which the default of payment exists or by
an | 30 |
| indenture trustee acting
on behalf of the holders. Delivery of | 31 |
| a summons and a copy of the complaint to
the chairman of the | 32 |
| Board
shall constitute sufficient service to give the circuit | 33 |
| court jurisdiction over
the subject matter of the suit and
| 34 |
| jurisdiction over the Authority and its officers named as | 35 |
| defendants for the
purpose of compelling such
payment. Any | 36 |
| case, controversy, or cause of action concerning the validity |
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| of
this Act relates to the
revenue of the State of Illinois.
| 2 |
| (d) Notwithstanding the form and tenor of any bond, note, | 3 |
| or other evidence
of indebtedness and in
the absence of any | 4 |
| express recital on its face that it is non-negotiable, all
such | 5 |
| bonds, notes, and other
evidences of indebtedness shall be | 6 |
| negotiable instruments. Pending the
preparation and execution | 7 |
| of any
bonds, notes, or other evidences of indebtedness, | 8 |
| temporary bonds, notes, or
evidences of indebtedness may
be | 9 |
| issued as provided by ordinance.
| 10 |
| (e) To secure the payment of any or all of such bonds, | 11 |
| notes, or other
evidences of indebtedness, the
revenues to be | 12 |
| received by the Authority from a lease agreement or loan
| 13 |
| agreement shall be pledged, and,
for the purpose of setting | 14 |
| forth the covenants and undertakings of the
Authority in | 15 |
| connection with the
issuance of the bonds, notes, or other | 16 |
| evidences of indebtedness and the
issuance of any additional | 17 |
| bonds,
notes or other evidences of indebtedness payable from | 18 |
| such revenues, income, or other funds to be derived
from | 19 |
| projects, the Authority may execute and deliver a mortgage or | 20 |
| trust agreement. A remedy for any
breach or default of the | 21 |
| terms of any mortgage or trust agreement by the Authority may | 22 |
| be by mandamus
proceeding in the appropriate circuit court to | 23 |
| compel performance and compliance under the terms of the
| 24 |
| mortgage or trust agreement, but the trust agreement may | 25 |
| prescribe by whom or on whose behalf the action
may be | 26 |
| instituted.
| 27 |
| (f) Bonds or notes shall be secured as provided in the | 28 |
| authorizing ordinance which may include,
notwithstanding any | 29 |
| other provision of this Act, in addition to any other security, | 30 |
| a specific pledge,
assignment of and lien on, or security | 31 |
| interest in any or all revenues or money of the Authority, from
| 32 |
| whatever source, which may, by law, be used for debt service | 33 |
| purposes and a
specific pledge, or assignment
of and lien on, | 34 |
| or security interest in any funds or accounts established or
| 35 |
| provided for by ordinance of the
Authority authorizing the | 36 |
| issuance of the bonds or notes.
|
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| (g) The State of Illinois pledges to and agrees with the | 2 |
| holders of the
bonds and notes of the Authority
issued pursuant | 3 |
| to this Section that the State will not limit or alter the | 4 |
| rights and powers vested in the
Authority by this Act so as to | 5 |
| impair the terms of any contract made by the Authority with the | 6 |
| holders of
bonds or notes or in any way impair the rights and | 7 |
| remedies of those holders until the bonds and notes,
together | 8 |
| with interest thereon, with interest on any unpaid installments | 9 |
| of interest, and all costs and
expenses in connection with any | 10 |
| action or proceedings by or on behalf of the holders, are fully | 11 |
| met and
discharged. In addition, the State pledges to and | 12 |
| agrees with the holders of the bonds and notes of the
Authority | 13 |
| issued pursuant to this Section that the State will not limit | 14 |
| or alter the basis on which State funds
are to be paid to the | 15 |
| Authority as provided in this Act, or the use of such funds, so | 16 |
| as to impair the terms of
any such contract. The Authority is | 17 |
| authorized to include these pledges and agreements of the State | 18 |
| in any
contract with the holders of bonds or notes issued | 19 |
| pursuant to this Section.
| 20 |
| (h) Not less than 30 days prior to the commitment to issue | 21 |
| bonds, notes, or
other evidences of
indebtedness for the | 22 |
| purpose of developing, constructing, acquiring, or
improving | 23 |
| housing or residential
projects, as defined in this Act, the | 24 |
| Authority shall provide notice to the
Executive Director of the | 25 |
| Illinois
Housing Development Authority. Within 30 days after | 26 |
| the notice is provided, the
Illinois Housing
Development | 27 |
| Authority shall, in writing, either express interest in | 28 |
| financing
the project or notify the
Authority that it is not | 29 |
| interested in providing financing and that the
Authority may | 30 |
| finance the project or
seek alternative financing.
| 31 |
| Section 40. Bonds and notes; exemption from taxation. The | 32 |
| creation of the
Authority is in all respects for
the benefit of | 33 |
| the people of Illinois and for the improvement of their health,
| 34 |
| safety, welfare, comfort, and
security, and its purposes are | 35 |
| public purposes. In consideration thereof, the
notes and bonds |
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| of the
Authority issued pursuant to this Act and the income | 2 |
| from these notes and bonds
may be free from all
taxation by the | 3 |
| State or its political subdivisions, except from estate,
| 4 |
| transfer, and inheritance taxes. The
exemption from taxation | 5 |
| provided by the preceding sentence shall apply to the
income on | 6 |
| any notes or
bonds of the Authority only if the Authority in | 7 |
| its sole judgment determines
that the exemption enhances
the | 8 |
| marketability of the bonds or notes or reduces the interest | 9 |
| rates that
would otherwise be borne by the
bonds or notes. For | 10 |
| purposes of Section 250 of the Illinois Income Tax Act, the
| 11 |
| exemption of the Authority
shall terminate after all of the | 12 |
| bonds have been paid. The amount of such income that shall be | 13 |
| added and
then subtracted on the Illinois income tax return of | 14 |
| a taxpayer, subject to Section 203 of the Illinois Income
Tax | 15 |
| Act, from federal adjusted gross income or federal taxable | 16 |
| income in computing Illinois base income
shall be the interest | 17 |
| net of any bond premium amortization.
| 18 |
| Section 45. Acquisition.
| 19 |
| (a) The Authority may, but need not, acquire title to any | 20 |
| project with
respect to which it exercises its
authority.
| 21 |
| (b) The Authority shall have power to acquire by purchase, | 22 |
| lease, gift, or
otherwise any property or
rights therein from | 23 |
| any person or persons, the State of Illinois, any municipal
| 24 |
| corporation, any local unit of
government, the government of | 25 |
| the United States and any agency or
instrumentality of the | 26 |
| United States,
any body politic, or any county useful for its | 27 |
| purposes, whether improved for
the purposes of any
prospective | 28 |
| project or unimproved. The Authority may also accept any | 29 |
| donation
of funds for its purposes
from any of these sources.
| 30 |
| (c) The Authority shall have power to develop, construct, | 31 |
| and improve,
either under its own direction or
through | 32 |
| collaboration with any approved applicant, or to acquire, | 33 |
| through
purchase or otherwise, any
project, using for this | 34 |
| purpose the proceeds derived from its sale of revenue
bonds, | 35 |
| notes, or other
evidences of indebtedness or governmental loans |
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| or grants and shall have the
power to hold title to those
| 2 |
| projects in the name of the Authority.
| 3 |
| (d) The Authority shall have the power to enter into | 4 |
| intergovernmental
agreements with the State of
Illinois, the | 5 |
| counties of Macon, Sangamon, Menard, Logan, Christian, Bond, | 6 |
| DeWitt, and Montgomery, the Illinois
Development Finance | 7 |
| Authority, the Illinois Housing
Development Authority, the | 8 |
| Illinois Education Facilities Authority, the
Illinois
Farm
| 9 |
| Development Authority, the Rural Bond Bank,
the United States | 10 |
| government and any agency or instrumentality of the United
| 11 |
| States, any unit
of local government located within the | 12 |
| territory of the Authority, or any other
unit of government to | 13 |
| the
extent allowed by Article VII, Section 10 of the Illinois | 14 |
| Constitution and the
Intergovernmental
Cooperation Act.
| 15 |
| (e) The Authority shall have the power to share employees | 16 |
| with other units
of government, including
agencies of the | 17 |
| United States, agencies of the State of Illinois, and agencies
| 18 |
| or personnel of any unit of
local government.
| 19 |
| (f) The Authority shall have the power to exercise powers | 20 |
| and issue bonds as
if it were a municipality so
authorized in | 21 |
| Divisions 12.1, 74, 74.1, 74.3, and 74.5 of Article 11 of the
| 22 |
| Illinois Municipal Code.
| 23 |
| Section 55. Designation of depository. The Authority shall | 24 |
| biennially
designate a national or State bank or
banks as | 25 |
| depositories of its money. Such depositories shall be | 26 |
| designated only
within the State and upon
condition that bonds | 27 |
| approved as to form and surety by the Authority and at
least | 28 |
| equal in amount to the
maximum sum expected to be on deposit at | 29 |
| any one time shall be first given by
such depositories to the
| 30 |
| Authority, such bonds to be conditioned for the safe keeping | 31 |
| and prompt
repayment of such deposits.
When any of the funds of | 32 |
| the Authority shall be deposited by the treasurer in
any such | 33 |
| depository, the
treasurer and the sureties on his or her | 34 |
| official bond shall, to such extent, be
exempt from liability | 35 |
| for the loss of
any such deposited funds by reason of the |
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| failure, bankruptcy, or any other act
or default of such | 2 |
| depository;
provided that the Authority may accept assignments | 3 |
| of collateral by any
depository of its funds to secure
such | 4 |
| deposits to the same extent and conditioned in the same manner | 5 |
| as
assignments of collateral are
permitted by law to secure | 6 |
| deposits of the funds of any city.
| 7 |
| Section 60. Taxation prohibited. The Authority shall have | 8 |
| no right or
authority to levy any tax or special
assessment, to | 9 |
| pledge the credit of the State or any other subdivision or
| 10 |
| municipal corporation thereof, or to
incur any obligation | 11 |
| enforceable upon any property, either within or without
the | 12 |
| territory of the Authority.
| 13 |
| Section 65. Fees. The Authority may collect fees and | 14 |
| charges in connection
with its loans, commitments,
and | 15 |
| servicing and may provide technical assistance in the | 16 |
| development of the
region.
| 17 |
| Section 70. Reports. The Authority shall annually submit a | 18 |
| report of its
finances to the Auditor General.
The Authority | 19 |
| shall annually submit a report of its activities to the | 20 |
| Governor
and to the General Assembly.
| 21 |
| Section 999. Effective date. This Act takes effect upon | 22 |
| becoming law.
|
|