Public Act 096-1020
 
HB2369 EnrolledLRB096 10118 JAM 20284 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
adding Sections 825-105 and 825-110 as follows:
 
    (20 ILCS 3501/825-105 new)
    Sec. 825-105. Implementation of ARRA provisions regarding
recovery zone bonds.
 
(a) Findings.
    Recovery zone bonds authorized by the American Recovery and
Reinvestment Act of 2009 are an important economic development
tool for the State. All counties in the State and
municipalities in the State with a population of 100,000 or
more have received an allocation of recovery zone bond
authorization. Under federal law, those allocations must be
used on or before December 31, 2010. The State strongly
encourages counties and municipalities to issue recovery zone
bonds to spur economic development in the State. Under federal
law, the allocations may be voluntarily waived to the State for
reallocation by the State to other jurisdictions and other
projects in the State. This Section sets forth the process by
which the Authority, on behalf of the State, will receive
otherwise unused allocations and ensure that this valuable
economic development incentive will be used to the fullest
extent feasible for the benefit of the citizens of the State of
Illinois.
 
(b) Definitions.
        (i) "Affected local government" means either any
    county in the State or a municipality within the State if
    the municipality has a population of 100,000 or more.
        (ii) "Allocation amount" means the $666,972,000 amount
    of recovery zone economic development bonds and
    $1,000,457,000 amount of recovery zone facility bonds
    authorized under ARRA for the financing of qualifying
    projects located within the State and the sub-allocation of
    those amounts among each affected local government.
        (iii) "ARRA" means, collectively, the American
    Recovery and Reinvestment Act of 2009, including, without
    limitation, Sections 1400U-1, 1400U-2, and 1400U-3 of the
    Code; the guidance provided by the Internal Revenue Service
    applicable to recovery zone bonds; and any legislation
    subsequently adopted by the United States Congress to
    extend or expand the economic development bond financing
    incentives authorized by ARRA.
        (iv) "ARRA implementing regulations" means the
    regulations promulgated by the Authority as further
    described in subdivision (d)(iv) of this Section to
    implement the provisions of this Section.
        (v) "Code" means the Internal Revenue Code of 1986, as
    amended.
        (vi) "Recovery zone" means any area designated
    pursuant to Section 1400U-1 of the Code.
        (vii) "Recovery zone bond" means any recovery zone
    economic development bond or recovery zone facility bond
    issued pursuant to Sections 1400U-2 and 1400U-3,
    respectively, of the Code.
        (viii) "Recovery zone bond allocation" means an
    allocation of authority to issue recovery zone bonds
    granted pursuant to Section 1400U-1 of the Code.
        (ix) "Regional authority" means the Central Illinois
    Economic Development Authority, Eastern Illinois Economic
    Development Authority, Joliet Arsenal Development
    Authority, Quad Cities Regional Economic Development
    Authority, Riverdale Development Authority, Southeastern
    Illinois Economic Development Authority, Southern Illinois
    Development Authority, Southwestern Illinois Development
    Authority, Tri-County River Valley Development Authority,
    Upper Illinois River Valley Development Authority,
    Illinois Urban Development Authority, Western Illinois
    Economic Development Authority, or Will-Kankakee Regional
    Development Authority.
        (x) "Sub-allocation" means the portion of the
    allocation amount allocated to each affected local
    government.
        (xi) "Waived recovery zone bond allocation" means the
    amount of the recovery zone bond allocation voluntarily
    waived by an affected local government.
        (xii) "Waiver agreement" means an agreement between
    the Authority and an affected local government providing
    for the voluntary waiver, in whole or in part, of that
    affected local government's sub-allocation to the
    Authority. The waiver agreement may provide for the payment
    of an affected local government's reasonable fees and costs
    as determined by the Authority in connection with the
    affected local government's voluntary waiver of its
    sub-allocation.
 
(c) Additional findings.
    It is found and declared that:
        (i) it is in the public interest and for the benefit of
    the State to maximize the use of economic development
    incentives authorized by ARRA;
        (ii) those incentives include the maximum use of the
    allocation amount for the issuance of recovery zone bonds
    to promote job creation and economic development in any
    area that has been designated as a recovery zone by an
    affected local government under the applicable provisions
    of ARRA;
        (iii) those incentives also include the issuance by the
    Authority of recovery zone bonds for the purposes of
    financing qualifying projects to be financed with proceeds
    of recovery zone bonds; and
        (iv) the provisions of this Section reflect the State's
    determination in good faith and in its discretion of the
    reasonable manner in which waived recovery zone bond
    allocations should be reallocated by the Authority.
 
(d) Powers of Authority.
        (i) In order to carry out the provisions of ARRA and
    further the purposes of this Section, the Authority has:
            (A) the power to receive from any affected local
        government its sub-allocation that it voluntarily
        waives to the Authority, in whole or in part, for
        reallocation by the Authority to a regional authority
        specifically designated by that affected local
        government, and the Authority shall reallocate that
        waived recovery zone bond allocation to the regional
        authority specifically designated by that affected
        local government; provided that (1) the affected local
        government must take official action by resolution or
        ordinance, as applicable, to waive the sub-allocation
        to the Authority and specifically designate that its
        waived recovery zone bond allocation should be
        reallocated to a regional authority; (2) the regional
        authority must use the sub-allocation to issue
        recovery zone bonds on or before August 16, 2010 and,
        if recovery zone bonds are not issued on or before
        August 16, 2010, the sub-allocation shall be deemed
        waived to the Authority for reallocation by the
        Authority to qualifying projects; and (3) the proceeds
        of the recovery zone bonds must be used for qualified
        projects within the jurisdiction of the applicable
        regional authority;
            (B) at the Authority's sole discretion, the power
        to reallocate any sub-allocation deemed waived to the
        Authority pursuant to subsection (d)(i)(A)(2) back to
        the regional authority that had the sub-allocation;
            (C) the power to enter into waiver agreements with
        affected local governments to provide for their
        voluntary waivers, in whole or in part, of their
        sub-allocations, to receive waived recovery zone bond
        allocations from those affected local governments, and
        to use those waived recovery zone bond allocations, in
        whole or in part, to issue recovery zone bonds of the
        Authority for qualifying projects or to reallocate
        those waived recovery zone bond allocations, in whole
        or in part, to a county or municipality to issue its
        own recovery zone bonds for qualifying projects;
            (D) the power to designate areas within the State
        as recovery zones or all of the State as a recovery
        zone; and
            (E) the power to issue recovery zone bonds for any
        project authorized to be financed with proceeds
        thereof under the applicable provisions of ARRA.
        (ii) In addition to the powers set forth in item (i),
    the Authority shall be the sole recipient, on behalf of the
    State, of any waived recovery zone bond allocations.
    Recovery zone bond allocations can be waived to the
    Authority only by voluntary waiver as provided in this
    Section.
        (iii) In addition to the powers set forth in items (i)
    and (ii), the Authority has any powers otherwise enjoyed by
    the Authority in connection with the issuance of its bonds
    if those powers are not in conflict with any provisions
    with respect to recovery zone bonds set forth in ARRA.
        (iv) The Authority has the power to adopt regulations
    providing for the implementation of any of the provisions
    contained in this Section, including provisions regarding
    waiver agreements and the reallocation of all or any
    portion of the allocation amount and sub-allocations and
    the issuance of recovery zone bonds; except that those
    regulations shall not (1) apply to or affect any
    designation of a recovery zone by a county or municipality,
    (2) provide for any waiver or reallocation of an affected
    local government's sub-allocation other than a voluntary
    waiver as described in subsection (d), or (3) be
    inconsistent with the provisions of subsection (d)(i).
    Regulations adopted by the Authority for determining
    reallocation of all or any portion of a waived recovery
    zone bond allocation may include, but are not limited to,
    (1) the ability of the county or municipality to issue
    recovery zone bonds on or before December 31, 2010, (2) the
    amount of jobs that will be retained or created, or both,
    by the qualifying project to be financed by recovery zone
    bonds, and (3) the geographical proximity of the qualifying
    project to be financed by recovery zone bonds to a county
    or municipality that voluntarily waived its sub-allocation
    to the Authority.
        (v) Unless extended by an act of the United States
    Congress, no recovery zone bonds may be issued after
    December 31, 2010.
 
(e) Established dates for notice.
    Any affected local government or any regional authority
that has issued recovery zone bonds on or before the effective
date of this Section must report its issuance of recovery zone
bonds to the Authority within 30 days after the effective date
of this Section. After the effective date of this Section, any
affected local government or any regional authority must report
its issuance of recovery zone bonds to the Authority not less
than 30 days after those bonds are issued.
 
(f) Reports to the General Assembly.
    Starting 60 days after the effective date of this Section
and ending on January 15, 2011, the Authority shall file a
report before the 15th day of each month with the General
Assembly detailing its implementation of this Section,
including but not limited to the dollar amount of the
allocation amount that has been reallocated by the Authority
pursuant to this Section, the recovery zone bonds issued in the
State as of the date of the report, and descriptions of the
qualifying projects financed by those recovery zone bonds.
 
    (20 ILCS 3501/825-110 new)
    Sec. 825-110. Implementation of ARRA provisions regarding
qualified energy conservation bonds.
 
(a) Definitions.
        (i) "Affected local government" means any county or
    municipality within the State if the county or municipality
    has a population of 100,000 or more, as defined in Section
    54D(e)(2)(C) of the Code.
        (ii) "Allocation amount" means the $133,846,000 amount
    of qualified energy conservation bonds authorized under
    ARRA for the financing of qualifying projects located
    within the State and the sub-allocation of those amounts
    among each affected local government.
        (iii) "ARRA" means, collectively, the American
    Recovery and Reinvestment Act of 2009, including, without
    limitation, Section 54D of the Code; the guidance provided
    by the Internal Revenue Service applicable to qualified
    energy conservation bonds; and any legislation
    subsequently adopted by the United States Congress to
    extend or expand the economic development bond financing
    incentives authorized by ARRA.
        (iv) "ARRA implementing regulations" means the
    regulations promulgated by the Authority as further
    described in subdivision (c)(iv) of this Section to
    implement the provisions of this Section.
        (v) "Code" means the Internal Revenue Code of 1986, as
    amended.
        (vi) "Qualified energy conservation bond" means any
    qualified energy conservation bond issued pursuant to
    Section 54D of the Code.
        (vii) "Qualified energy conservation bond allocation"
    means an allocation of authority to issue qualified energy
    conservation bonds granted pursuant to Section 54D of the
    Code.
        (viii) "Regional authority" means the Central Illinois
    Economic Development Authority, Eastern Illinois Economic
    Development Authority, Joliet Arsenal Development
    Authority, Quad Cities Regional Economic Development
    Authority, Riverdale Development Authority, Southeastern
    Illinois Economic Development Authority, Southern Illinois
    Development Authority, Southwestern Illinois Development
    Authority, Tri-County River Valley Development Authority,
    Upper Illinois River Valley Development Authority,
    Illinois Urban Development Authority, Western Illinois
    Economic Development Authority, or Will-Kankakee Regional
    Development Authority.
        (ix) "Sub-allocation" means the portion of the
    allocation amount allocated to each affected local
    government.
        (x) "Waived qualified energy conservation bond
    allocation" means the amount of the qualified energy
    conservation bond allocation that an affected local
    government elects to reallocate to the State pursuant to
    Section 54D(e)(2)(B) of the Code.
        (xi) "Waiver agreement" means an agreement between the
    Authority and an affected local government providing for
    the reallocation, in whole or in part, of that affected
    local government's sub-allocation to the Authority. The
    waiver agreement may provide for the payment of an affected
    local government's reasonable fees and costs as determined
    by the Authority in connection with the affected local
    government's reallocation of its sub-allocation.
 
(b) Findings.
    It is found and declared that:
        (i) it is in the public interest and for the benefit of
    the State to maximize the use of economic development
    incentives authorized by ARRA;
        (ii) those incentives include the maximum use of the
    allocation amount for the issuance of qualified energy
    conservation bonds to promote energy conservation under
    the applicable provisions of ARRA; and
        (iii) those incentives also include the issuance by the
    Authority of qualified energy conservation bonds for the
    purposes of financing qualifying projects to be financed
    with proceeds of qualified energy conservation bonds.
 
(c) Powers of Authority.
        (i) In order to carry out the provisions of ARRA and
    further the purposes of this Section, the Authority has:
            (A) the power to receive from any affected local
        government its sub-allocation that it voluntarily
        waives to the Authority, in whole or in part, for
        allocation by the Authority to a regional authority
        specifically designated by that affected local
        government, and the Authority shall reallocate that
        waived qualified energy conservation bond allocation
        to the regional authority specifically designated by
        that affected local government; provided that (1) the
        affected local government must take official action by
        resolution or ordinance, as applicable, to waive the
        sub-allocation to the Authority and specifically
        designate that its waived qualified energy
        conservation bond allocation should be reallocated to
        a regional authority; (2) the regional authority must
        use the sub-allocation to issue qualified energy
        conservation bonds on or before August 16, 2010 and, if
        qualified energy conservation bonds are not issued on
        or before August 16, 2010, the sub-allocation shall be
        deemed waived to the Authority for reallocation by the
        Authority to qualifying projects; and (3) the proceeds
        of the qualified energy conservation bonds must be used
        for qualified projects within the jurisdiction of the
        applicable regional authority;
            (B) at the Authority's sole discretion, the power
        to reallocate any sub-allocation deemed waived to the
        Authority pursuant to subsection (c)(i)(A)(2) back to
        the Regional Authority that had the sub-allocation;
            (C) the power to enter into waiver agreements with
        affected local governments to provide for the
        reallocation, in whole or in part, of their
        sub-allocations, to receive waived qualified energy
        conservation bond allocations from those affected
        local governments, and to use those waived qualified
        energy conservation bond allocations, in whole or in
        part, to issue qualified energy conservation bonds of
        the Authority for qualifying projects or to reallocate
        those qualified energy conservation bond allocations,
        in whole or in part, to a county or municipality to
        issue its own energy conservation bonds for qualifying
        projects; and
            (D) the power to issue qualified energy
        conservation bonds for any project authorized to be
        financed with proceeds thereof under the applicable
        provisions of ARRA.
        (ii) In addition to the powers set forth in item (i),
    the Authority shall be the sole recipient, on behalf of the
    State, of any waived qualified energy conservation bond
    allocations. Qualified energy conservation bond
    allocations can be reallocated to the Authority only by
    voluntary waiver as provided in this Section.
        (iii) In addition to the powers set forth in items (i)
    and (ii), the Authority has any powers otherwise enjoyed by
    the Authority in connection with the issuance of its bonds
    if those powers are not in conflict with any provisions
    with respect to qualified energy conservation bonds set
    forth in ARRA.
        (iv) The Authority has the power to adopt regulations
    providing for the implementation of any of the provisions
    contained in this Section, including the provisions
    regarding waiver agreements and reallocation of all or any
    portion of the allocation amount and sub-allocations and
    the issuance of qualified energy conservation bonds;
    except that those regulations shall not (1) provide any
    waiver or reallocation of an affected local government's
    sub-allocation other than a voluntary waiver as described
    in subsection (c) or (2) be inconsistent with the
    provisions of subsection (c)(i). Regulations adopted by
    the Authority for determining reallocation of all or any
    portion of a waived qualified energy conservation
    allocation may include, but are not limited to, (1) the
    ability of the county or municipality to issue qualified
    energy conservation bonds by the end of a given calendar
    year, (2) the amount of jobs that will be retained or
    created, or both, by the qualifying project to be financed
    by qualified energy conservation bonds, and (3) the
    geographical proximity of the qualifying project to be
    financed by qualified energy conservation bonds to a
    municipality or county that reallocated its sub-allocation
    to the Authority.
 
(d) Established dates for notice.
    Any affected local government or regional authority that
has issued qualified energy conservation bonds on or before the
effective date of this Section must report its issuance of
qualified energy conservation bonds to the Authority within 30
days after the effective date of this Section. After the
effective date of this Section, any affected local government
or any regional authority must report its issuance of qualified
energy conservation bonds to the Authority not less than 30
days after those bonds are issued.
 
(e) Reports to the General Assembly.
    Starting 60 days after the effective date of this Section
and ending when there is no longer any allocation amount, the
Authority shall file a report before the 15th day of each month
with the General Assembly detailing its implementation of this
Section, including but not limited to the dollar amount of the
allocation amount that has been reallocated by the Authority
pursuant to this Section, the qualified energy conservation
bonds issued in the State as of the date of the report, and
descriptions of the qualifying projects financed by those
qualified energy conservation bonds.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 07/12/2010