Illinois General Assembly - Full Text of Public Act 095-0697
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Public Act 095-0697


 

Public Act 0697 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0697
 
SB1327 Enrolled LRB095 10742 RCE 30984 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Finance Authority Act is amended by
changing Sections 801-10, 830-50, and 845-5 and by adding
Section 825-12 as follows:
 
    (20 ILCS 3501/801-10)
    Sec. 801-10. Definitions. The following terms, whenever
used or referred to in this Act, shall have the following
meanings, except in such instances where the context may
clearly indicate otherwise:
    (a) The term "Authority" means the Illinois Finance
Authority created by this Act.
    (b) The term "project" means an industrial project,
conservation project, housing project, public purpose project,
higher education project, health facility project, cultural
institution project, agricultural facility or agribusiness,
and "project" may include any combination of one or more of the
foregoing undertaken jointly by any person with one or more
other persons.
    (c) The term "public purpose project" means any project or
facility including without limitation land, buildings,
structures, machinery, equipment and all other real and
personal property, which is authorized or required by law to be
acquired, constructed, improved, rehabilitated, reconstructed,
replaced or maintained by any unit of government or any other
lawful public purpose which is authorized or required by law to
be undertaken by any unit of government.
    (d) The term "industrial project" means the acquisition,
construction, refurbishment, creation, development or
redevelopment of any facility, equipment, machinery, real
property or personal property for use by any instrumentality of
the State or its political subdivisions, for use by any person
or institution, public or private, for profit or not for
profit, or for use in any trade or business including, but not
limited to, any industrial, manufacturing or commercial
enterprise and which is (1) a capital project including but not
limited to: (i) land and any rights therein, one or more
buildings, structures or other improvements, machinery and
equipment, whether now existing or hereafter acquired, and
whether or not located on the same site or sites; (ii) all
appurtenances and facilities incidental to the foregoing,
including, but not limited to utilities, access roads, railroad
sidings, track, docking and similar facilities, parking
facilities, dockage, wharfage, railroad roadbed, track,
trestle, depot, terminal, switching and signaling or related
equipment, site preparation and landscaping; and (iii) all
non-capital costs and expenses relating thereto or (2) any
addition to, renovation, rehabilitation or improvement of a
capital project or (3) any activity or undertaking which the
Authority determines will aid, assist or encourage economic
growth, development or redevelopment within the State or any
area thereof, will promote the expansion, retention or
diversification of employment opportunities within the State
or any area thereof or will aid in stabilizing or developing
any industry or economic sector of the State economy. The term
"industrial project" also means the production of motion
pictures.
    (e) The term "bond" or "bonds" shall include bonds, notes
(including bond, grant or revenue anticipation notes),
certificates and/or other evidences of indebtedness
representing an obligation to pay money, including refunding
bonds.
    (f) The terms "lease agreement" and "loan agreement" shall
mean: (i) an agreement whereby a project acquired by the
Authority by purchase, gift or lease is leased to any person,
corporation or unit of local government which will use or cause
the project to be used as a project as heretofore defined upon
terms providing for lease rental payments at least sufficient
to pay when due all principal of, interest and premium, if any,
on any bonds of the Authority issued with respect to such
project, providing for the maintenance, insuring and operation
of the project on terms satisfactory to the Authority,
providing for disposition of the project upon termination of
the lease term, including purchase options or abandonment of
the premises, and such other terms as may be deemed desirable
by the Authority, or (ii) any agreement pursuant to which the
Authority agrees to loan the proceeds of its bonds issued with
respect to a project or other funds of the Authority to any
person which will use or cause the project to be used as a
project as heretofore defined upon terms providing for loan
repayment installments at least sufficient to pay when due all
principal of, interest and premium, if any, on any bonds of the
Authority, if any, issued with respect to the project, and
providing for maintenance, insurance and other matters as may
be deemed desirable by the Authority.
    (g) The term "financial aid" means the expenditure of
Authority funds or funds provided by the Authority through the
issuance of its bonds, notes or other evidences of indebtedness
or from other sources for the development, construction,
acquisition or improvement of a project.
    (h) The term "person" means an individual, corporation,
unit of government, business trust, estate, trust, partnership
or association, 2 or more persons having a joint or common
interest, or any other legal entity.
    (i) The term "unit of government" means the federal
government, the State or unit of local government, a school
district, or any agency or instrumentality, office, officer,
department, division, bureau, commission, college or
university thereof.
    (j) The term "health facility" means: (a) any public or
private institution, place, building, or agency required to be
licensed under the Hospital Licensing Act; (b) any public or
private institution, place, building, or agency required to be
licensed under the Nursing Home Care Act; (c) any public or
licensed private hospital as defined in the Mental Health and
Developmental Disabilities Code; (d) any such facility
exempted from such licensure when the Director of Public Health
attests that such exempted facility meets the statutory
definition of a facility subject to licensure; (e) any other
public or private health service institution, place, building,
or agency which the Director of Public Health attests is
subject to certification by the Secretary, U.S. Department of
Health and Human Services under the Social Security Act, as now
or hereafter amended, or which the Director of Public Health
attests is subject to standard-setting by a recognized public
or voluntary accrediting or standard-setting agency; (f) any
public or private institution, place, building or agency
engaged in providing one or more supporting services to a
health facility; (g) any public or private institution, place,
building or agency engaged in providing training in the healing
arts, including but not limited to schools of medicine,
dentistry, osteopathy, optometry, podiatry, pharmacy or
nursing, schools for the training of x-ray, laboratory or other
health care technicians and schools for the training of
para-professionals in the health care field; (h) any public or
private congregate, life or extended care or elderly housing
facility or any public or private home for the aged or infirm,
including, without limitation, any Facility as defined in the
Life Care Facilities Act; (i) any public or private mental,
emotional or physical rehabilitation facility or any public or
private educational, counseling, or rehabilitation facility or
home, for those persons with a developmental disability, those
who are physically ill or disabled, the emotionally disturbed,
those persons with a mental illness or persons with learning or
similar disabilities or problems; (j) any public or private
alcohol, drug or substance abuse diagnosis, counseling
treatment or rehabilitation facility, (k) any public or private
institution, place, building or agency licensed by the
Department of Children and Family Services or which is not so
licensed but which the Director of Children and Family Services
attests provides child care, child welfare or other services of
the type provided by facilities subject to such licensure; (l)
any public or private adoption agency or facility; and (m) any
public or private blood bank or blood center. "Health facility"
also means a public or private structure or structures suitable
primarily for use as a laboratory, laundry, nurses or interns
residence or other housing or hotel facility used in whole or
in part for staff, employees or students and their families,
patients or relatives of patients admitted for treatment or
care in a health facility, or persons conducting business with
a health facility, physician's facility, surgicenter,
administration building, research facility, maintenance,
storage or utility facility and all structures or facilities
related to any of the foregoing or required or useful for the
operation of a health facility, including parking or other
facilities or other supporting service structures required or
useful for the orderly conduct of such health facility.
    (k) The term "participating health institution" means a
private corporation or association or public entity of this
State, authorized by the laws of this State to provide or
operate a health facility as defined in this Act and which,
pursuant to the provisions of this Act, undertakes the
financing, construction or acquisition of a project or
undertakes the refunding or refinancing of obligations, loans,
indebtedness or advances as provided in this Act.
    (l) The term "health facility project", means a specific
health facility work or improvement to be financed or
refinanced (including without limitation through reimbursement
of prior expenditures), acquired, constructed, enlarged,
remodeled, renovated, improved, furnished, or equipped, with
funds provided in whole or in part hereunder, any accounts
receivable, working capital, liability or insurance cost or
operating expense financing or refinancing program of a health
facility with or involving funds provided in whole or in part
hereunder, or any combination thereof.
    (m) The term "bond resolution" means the resolution or
resolutions authorizing the issuance of, or providing terms and
conditions related to, bonds issued under this Act and
includes, where appropriate, any trust agreement, trust
indenture, indenture of mortgage or deed of trust providing
terms and conditions for such bonds.
    (n) The term "property" means any real, personal or mixed
property, whether tangible or intangible, or any interest
therein, including, without limitation, any real estate,
leasehold interests, appurtenances, buildings, easements,
equipment, furnishings, furniture, improvements, machinery,
rights of way, structures, accounts, contract rights or any
interest therein.
    (o) The term "revenues" means, with respect to any project,
the rents, fees, charges, interest, principal repayments,
collections and other income or profit derived therefrom.
    (p) The term "higher education project" means, in the case
of a private institution of higher education, an educational
facility to be acquired, constructed, enlarged, remodeled,
renovated, improved, furnished, or equipped, or any
combination thereof.
    (q) The term "cultural institution project" means, in the
case of a cultural institution, a cultural facility to be
acquired, constructed, enlarged, remodeled, renovated,
improved, furnished, or equipped, or any combination thereof.
    (r) The term "educational facility" means any property
located within the State constructed or acquired before or
after the effective date of this Act, which is or will be, in
whole or in part, suitable for the instruction, feeding,
recreation or housing of students, the conducting of research
or other work of a private institution of higher education, the
use by a private institution of higher education in connection
with any educational, research or related or incidental
activities then being or to be conducted by it, or any
combination of the foregoing, including, without limitation,
any such property suitable for use as or in connection with any
one or more of the following: an academic facility,
administrative facility, agricultural facility, assembly hall,
athletic facility, auditorium, boating facility, campus,
communication facility, computer facility, continuing
education facility, classroom, dining hall, dormitory,
exhibition hall, fire fighting facility, fire prevention
facility, food service and preparation facility, gymnasium,
greenhouse, health care facility, hospital, housing,
instructional facility, laboratory, library, maintenance
facility, medical facility, museum, offices, parking area,
physical education facility, recreational facility, research
facility, stadium, storage facility, student union, study
facility, theatre or utility.
    (s) The term "cultural facility" means any property located
within the State constructed or acquired before or after the
effective date of this Act, which is or will be, in whole or in
part, suitable for the particular purposes or needs of a
cultural institution, including, without limitation, any such
property suitable for use as or in connection with any one or
more of the following: an administrative facility, aquarium,
assembly hall, auditorium, botanical garden, exhibition hall,
gallery, greenhouse, library, museum, scientific laboratory,
theater or zoological facility, and shall also include, without
limitation, books, works of art or music, animal, plant or
aquatic life or other items for display, exhibition or
performance. The term "cultural facility" includes buildings
on the National Register of Historic Places which are owned or
operated by nonprofit entities.
    (t) "Private institution of higher education" means a
not-for-profit educational institution which is not owned by
the State or any political subdivision, agency,
instrumentality, district or municipality thereof, which is
authorized by law to provide a program of education beyond the
high school level and which:
        (1) Admits as regular students only individuals having
    a certificate of graduation from a high school, or the
    recognized equivalent of such a certificate;
        (2) Provides an educational program for which it awards
    a bachelor's degree, or provides an educational program,
    admission into which is conditioned upon the prior
    attainment of a bachelor's degree or its equivalent, for
    which it awards a postgraduate degree, or provides not less
    than a 2-year program which is acceptable for full credit
    toward such a degree, or offers a 2-year program in
    engineering, mathematics, or the physical or biological
    sciences which is designed to prepare the student to work
    as a technician and at a semiprofessional level in
    engineering, scientific, or other technological fields
    which require the understanding and application of basic
    engineering, scientific, or mathematical principles or
    knowledge;
        (3) Is accredited by a nationally recognized
    accrediting agency or association or, if not so accredited,
    is an institution whose credits are accepted, on transfer,
    by not less than 3 institutions which are so accredited,
    for credit on the same basis as if transferred from an
    institution so accredited, and holds an unrevoked
    certificate of approval under the Private College Act from
    the Board of Higher Education, or is qualified as a "degree
    granting institution" under the Academic Degree Act; and
        (4) Does not discriminate in the admission of students
    on the basis of race or color. "Private institution of
    higher education" also includes any "academic
    institution".
    (u) The term "academic institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in, or
facilitates academic, scientific, educational or professional
research or learning in a field or fields of study taught at a
private institution of higher education. Academic institutions
include, without limitation, libraries, archives, academic,
scientific, educational or professional societies,
institutions, associations or foundations having such
purposes.
    (v) The term "cultural institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in the
cultural, intellectual, scientific, educational or artistic
enrichment of the people of the State. Cultural institutions
include, without limitation, aquaria, botanical societies,
historical societies, libraries, museums, performing arts
associations or societies, scientific societies and zoological
societies.
    (w) The term "affiliate" means, with respect to financing
of an agricultural facility or an agribusiness, any lender, any
person, firm or corporation controlled by, or under common
control with, such lender, and any person, firm or corporation
controlling such lender.
    (x) The term "agricultural facility" means land, any
building or other improvement thereon or thereto, and any
personal properties deemed necessary or suitable for use,
whether or not now in existence, in farming, ranching, the
production of agricultural commodities (including, without
limitation, the products of aquaculture, hydroponics and
silviculture) or the treating, processing or storing of such
agricultural commodities when such activities are customarily
engaged in by farmers as a part of farming.
    (y) The term "lender" with respect to financing of an
agricultural facility or an agribusiness, means any federal or
State chartered bank, Federal Land Bank, Production Credit
Association, Bank for Cooperatives, federal or State chartered
savings and loan association or building and loan association,
Small Business Investment Company or any other institution
qualified within this State to originate and service loans,
including, but without limitation to, insurance companies,
credit unions and mortgage loan companies. "Lender" also means
a wholly owned subsidiary of a manufacturer, seller or
distributor of goods or services that makes loans to businesses
or individuals, commonly known as a "captive finance company".
    (z) The term "agribusiness" means any sole proprietorship,
limited partnership, co-partnership, joint venture,
corporation or cooperative which operates or will operate a
facility located within the State of Illinois that is related
to the processing of agricultural commodities (including,
without limitation, the products of aquaculture, hydroponics
and silviculture) or the manufacturing, production or
construction of agricultural buildings, structures, equipment,
implements, and supplies, or any other facilities or processes
used in agricultural production. Agribusiness includes but is
not limited to the following:
        (1) grain handling and processing, including grain
    storage, drying, treatment, conditioning, mailing and
    packaging;
        (2) seed and feed grain development and processing;
        (3) fruit and vegetable processing, including
    preparation, canning and packaging;
        (4) processing of livestock and livestock products,
    dairy products, poultry and poultry products, fish or
    apiarian products, including slaughter, shearing,
    collecting, preparation, canning and packaging;
        (5) fertilizer and agricultural chemical
    manufacturing, processing, application and supplying;
        (6) farm machinery, equipment and implement
    manufacturing and supplying;
        (7) manufacturing and supplying of agricultural
    commodity processing machinery and equipment, including
    machinery and equipment used in slaughter, treatment,
    handling, collecting, preparation, canning or packaging of
    agricultural commodities;
        (8) farm building and farm structure manufacturing,
    construction and supplying;
        (9) construction, manufacturing, implementation,
    supplying or servicing of irrigation, drainage and soil and
    water conservation devices or equipment;
        (10) fuel processing and development facilities that
    produce fuel from agricultural commodities or byproducts;
        (11) facilities and equipment for processing and
    packaging agricultural commodities specifically for
    export;
        (12) facilities and equipment for forestry product
    processing and supplying, including sawmilling operations,
    wood chip operations, timber harvesting operations, and
    manufacturing of prefabricated buildings, paper, furniture
    or other goods from forestry products;
        (13) facilities and equipment for research and
    development of products, processes and equipment for the
    production, processing, preparation or packaging of
    agricultural commodities and byproducts.
    (aa) The term "asset" with respect to financing of any
agricultural facility or any agribusiness, means, but is not
limited to the following: cash crops or feed on hand; livestock
held for sale; breeding stock; marketable bonds and securities;
securities not readily marketable; accounts receivable; notes
receivable; cash invested in growing crops; net cash value of
life insurance; machinery and equipment; cars and trucks; farm
and other real estate including life estates and personal
residence; value of beneficial interests in trusts; government
payments or grants; and any other assets.
    (bb) The term "liability" with respect to financing of any
agricultural facility or any agribusiness shall include, but
not be limited to the following: accounts payable; notes or
other indebtedness owed to any source; taxes; rent; amounts
owed on real estate contracts or real estate mortgages;
judgments; accrued interest payable; and any other liability.
    (cc) The term "Predecessor Authorities" means those
authorities as described in Section 845-75.
    (dd) The term "housing project" means a specific work or
improvement undertaken to provide residential dwelling
accommodations, including the acquisition, construction or
rehabilitation of lands, buildings and community facilities
and in connection therewith to provide nonhousing facilities
which are part of the housing project, including land,
buildings, improvements, equipment and all ancillary
facilities for use for offices, stores, retirement homes,
hotels, financial institutions, service, health care,
education, recreation or research establishments, or any other
commercial purpose which are or are to be related to a housing
development.
    (ee) The term "conservation project" means any project
including the acquisition, construction, rehabilitation,
maintenance, operation, or upgrade that is intended to create
or expand open space or to reduce energy usage through
efficiency measures. For the purpose of this definition, "open
space" has the definition set forth under Section 10 of the
Illinois Open Land Trust Act.
(Source: P.A. 93-205, eff. 1-1-04; 93-1101, eff. 3-31-05.)
 
    (20 ILCS 3501/825-12 new)
    Sec. 825-12. Conservation projects.
    (a) The Authority may develop a program to provide
low-interest loans and other financing to individuals,
business entities, private organizations, and units of local
government for conservation projects in the State of Illinois.
    (b) Projects under this Section may include, without
limitation, the acquisition of land for open-space projects,
preservation or recreation measures for open spaces, and energy
conservation or efficiency projects that are intended to reduce
energy usage and costs.
    (c) The Authority, in cooperation with the Department of
Natural Resources and the Department of Commerce and Economic
Opportunity, may adopt any rules necessary for the
administration of this Section. The Authority must include any
information concerning the program under this Section on its
Internet website.
 
    (20 ILCS 3501/830-50)
    Sec. 830-50. Specialized Livestock Guarantee Program.
    (a) The Authority is authorized to issue State Guarantees
to lenders for loans to finance or refinance debts for
specialized livestock operations that are or will be located in
Illinois. For purposes of this Section, a "specialized
livestock operation" includes, but is not limited to, dairy,
beef, and swine enterprises. For purposes of this Section, a
specialized livestock operation also includes livestock
operations using anaerobic digestors to generate electricity.
    (b) Lenders shall apply for the State Guarantees on forms
provided by the Authority and certify that the application and
any other documents submitted are true and correct. The lender
or borrower, or both in combination, shall pay an
administrative fee as determined by the Authority. The
applicant shall be responsible for paying any fee or charge
involved in recording mortgages, releases, financing
statements, insurance for secondary market issues, and any
other similar fee or charge that the Authority may require. The
application shall, at a minimum, contain the farmer's name,
address, present credit and financial information, including
cash flow statements, financial statements, balance sheets,
and any other information pertinent to the application, and the
collateral to be used to secure the State Guarantee. In
addition, the borrower must certify to the Authority that, at
the time the State Guarantee is provided, the borrower will not
be delinquent in the repayment of any debt. The lender must
agree to charge a fixed or adjustable interest rate that the
Authority determines to be below the market rate of interest
generally available to the borrower. If both the lender and
applicant agree, the interest rate on the State guaranteed loan
can be converted to a fixed interest rate at any time during
the term of the loan.
    (c) State Guarantees provided under this Section (i) shall
not exceed $1,000,000 per applicant, (ii) shall be no longer
than 15 years in duration, and (iii) shall be subject to an
annual review and renewal by the lender and the Authority. An
applicant may use this program more than once, provided that
the aggregate principal amount of State Guarantees under this
Section to that applicant does not exceed $1,000,000. A State
Guarantee shall not be revoked by the Authority without a
90-day notice, in writing, to all parties.
    (d) The Authority shall provide or renew a State Guarantee
to a lender if: (i) The lender pays a fee equal to 25 basis
points on the loan to the Authority on an annual basis. (ii)
The application provides collateral acceptable to the
Authority that is at least equal to the State Guarantee. (iii)
The lender assumes all responsibility and costs for pursuing
legal action on collecting any loan that is delinquent or in
default. (iv) The lender is at risk for the first 15% of the
outstanding principal of the note for which the State Guarantee
is provided.
    (e) The Illinois Farmer and Agribusiness Loan Guarantee
Fund may be used to secure State Guarantees issued under this
Section as provided in Section 830-35.
    (f) Notwithstanding the provisions of this Section 830-50
with respect to the specialized livestock operations and
lenders who may obtain State Guarantees, the Authority may
promulgate rules establishing the eligibility of specialized
livestock operations and lenders to participate in the State
Guarantee program and the terms, standards, and procedures that
will apply, when the Authority finds that emergency conditions
in Illinois agriculture have created the need for State
Guarantees pursuant to terms, standards, and procedures other
than those specified in this Section.
(Source: P.A. 93-205, eff. 1-1-04.)
 
    (20 ILCS 3501/845-5)
    Sec. 845-5. The Authority may not have outstanding at any
one time bonds for any of its corporate purposes in an
aggregate principal amount exceeding $26,650,000,000
$25,200,000,000, excluding bonds issued to refund the bonds of
the Authority or bonds of the Predecessor Authorities.
(Source: P.A. 93-205, eff. 1-1-04; 93-1101, eff. 3-31-05;
94-1068, eff. 8-1-06.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 11/6/2007