Sen. A. J. Wilhelmi

Filed: 4/29/2010

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2369

2     AMENDMENT NO. ______. Amend House Bill 2369, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
 
5     "Section 5. The Illinois Finance Authority Act is amended
6 by adding Sections 825-105 and 825-110 as follows:
 
7     (20 ILCS 3501/825-105 new)
8     Sec. 825-105. Implementation of ARRA provisions regarding
9 recovery zone bonds.
 
10 (a) Findings.
11     Recovery zone bonds authorized by the American Recovery and
12 Reinvestment Act of 2009 are an important economic development
13 tool for the State. All counties in the State and
14 municipalities in the State with a population of 100,000 or
15 more have received an allocation of recovery zone bond

 

 

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1 authorization. Under federal law, those allocations must be
2 used on or before December 31, 2010. The State strongly
3 encourages counties and municipalities to issue recovery zone
4 bonds to spur economic development in the State. Under federal
5 law, the allocations may be voluntarily waived to the State for
6 reallocation by the State to other jurisdictions and other
7 projects in the State. This Section sets forth the process by
8 which the Authority, on behalf of the State, will receive
9 otherwise unused allocations and ensure that this valuable
10 economic development incentive will be used to the fullest
11 extent feasible for the benefit of the citizens of the State of
12 Illinois.
 
13 (b) Definitions.
14         (i) "Affected local government" means either any
15     county in the State or a municipality within the State if
16     the municipality has a population of 100,000 or more.
17         (ii) "Allocation amount" means the $666,972,000 amount
18     of recovery zone economic development bonds and
19     $1,000,457,000 amount of recovery zone facility bonds
20     authorized under ARRA for the financing of qualifying
21     projects located within the State and the sub-allocation of
22     those amounts among each affected local government.
23         (iii) "ARRA" means, collectively, the American
24     Recovery and Reinvestment Act of 2009, including, without
25     limitation, Sections 1400U-1, 1400U-2, and 1400U-3 of the

 

 

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1     Code; the guidance provided by the Internal Revenue Service
2     applicable to recovery zone bonds; and any legislation
3     subsequently adopted by the United States Congress to
4     extend or expand the economic development bond financing
5     incentives authorized by ARRA.
6         (iv) "ARRA implementing regulations" means the
7     regulations promulgated by the Authority as further
8     described in subdivision (d)(iv) of this Section to
9     implement the provisions of this Section.
10         (v) "Code" means the Internal Revenue Code of 1986, as
11     amended.
12         (vi) "Recovery zone" means any area designated
13     pursuant to Section 1400U-1 of the Code.
14         (vii) "Recovery zone bond" means any recovery zone
15     economic development bond or recovery zone facility bond
16     issued pursuant to Sections 1400U-2 and 1400U-3,
17     respectively, of the Code.
18         (viii) "Recovery zone bond allocation" means an
19     allocation of authority to issue recovery zone bonds
20     granted pursuant to Section 1400U-1 of the Code.
21         (ix) "Regional authority" means the Central Illinois
22     Economic Development Authority, Eastern Illinois Economic
23     Development Authority, Joliet Arsenal Development
24     Authority, Quad Cities Regional Economic Development
25     Authority, Riverdale Development Authority, Southeastern
26     Illinois Economic Development Authority, Southern Illinois

 

 

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1     Development Authority, Southwestern Illinois Development
2     Authority, Tri-County River Valley Development Authority,
3     Upper Illinois River Valley Development Authority,
4     Illinois Urban Development Authority, Western Illinois
5     Economic Development Authority, or Will-Kankakee Regional
6     Development Authority.
7         (x) "Sub-allocation" means the portion of the
8     allocation amount allocated to each affected local
9     government.
10         (xi) "Waived recovery zone bond allocation" means the
11     amount of the recovery zone bond allocation voluntarily
12     waived by an affected local government.
13         (xii) "Waiver agreement" means an agreement between
14     the Authority and an affected local government providing
15     for the voluntary waiver, in whole or in part, of that
16     affected local government's sub-allocation to the
17     Authority. The waiver agreement may provide for the payment
18     of an affected local government's reasonable fees and costs
19     as determined by the Authority in connection with the
20     affected local government's voluntary waiver of its
21     sub-allocation.
 
22 (c) Additional findings.
23     It is found and declared that:
24         (i) it is in the public interest and for the benefit of
25     the State to maximize the use of economic development

 

 

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1     incentives authorized by ARRA;
2         (ii) those incentives include the maximum use of the
3     allocation amount for the issuance of recovery zone bonds
4     to promote job creation and economic development in any
5     area that has been designated as a recovery zone by an
6     affected local government under the applicable provisions
7     of ARRA;
8         (iii) those incentives also include the issuance by the
9     Authority of recovery zone bonds for the purposes of
10     financing qualifying projects to be financed with proceeds
11     of recovery zone bonds; and
12         (iv) the provisions of this Section reflect the State's
13     determination in good faith and in its discretion of the
14     reasonable manner in which waived recovery zone bond
15     allocations should be reallocated by the Authority.
 
16 (d) Powers of Authority.
17         (i) In order to carry out the provisions of ARRA and
18     further the purposes of this Section, the Authority has:
19             (A) the power to receive from any affected local
20         government its sub-allocation that it voluntarily
21         waives to the Authority, in whole or in part, for
22         reallocation by the Authority to a regional authority
23         specifically designated by that affected local
24         government, and the Authority shall reallocate that
25         waived recovery zone bond allocation to the regional

 

 

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1         authority specifically designated by that affected
2         local government; provided that (1) the affected local
3         government must take official action by resolution or
4         ordinance, as applicable, to waive the sub-allocation
5         to the Authority and specifically designate that its
6         waived recovery zone bond allocation should be
7         reallocated to a regional authority; (2) the regional
8         authority must use the sub-allocation to issue
9         recovery zone bonds on or before August 16, 2010 and,
10         if recovery zone bonds are not issued on or before
11         August 16, 2010, the sub-allocation shall be deemed
12         waived to the Authority for reallocation by the
13         Authority to qualifying projects; and (3) the proceeds
14         of the recovery zone bonds must be used for qualified
15         projects within the jurisdiction of the applicable
16         regional authority;
17             (B) at the Authority's sole discretion, the power
18         to reallocate any sub-allocation deemed waived to the
19         Authority pursuant to subsection (d)(i)(A)(2) back to
20         the regional authority that had the sub-allocation;
21             (C) the power to enter into waiver agreements with
22         affected local governments to provide for their
23         voluntary waivers, in whole or in part, of their
24         sub-allocations, to receive waived recovery zone bond
25         allocations from those affected local governments, and
26         to use those waived recovery zone bond allocations, in

 

 

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1         whole or in part, to issue recovery zone bonds of the
2         Authority for qualifying projects or to reallocate
3         those waived recovery zone bond allocations, in whole
4         or in part, to a county or municipality to issue its
5         own recovery zone bonds for qualifying projects;
6             (D) the power to designate areas within the State
7         as recovery zones or all of the State as a recovery
8         zone; and
9             (E) the power to issue recovery zone bonds for any
10         project authorized to be financed with proceeds
11         thereof under the applicable provisions of ARRA.
12         (ii) In addition to the powers set forth in item (i),
13     the Authority shall be the sole recipient, on behalf of the
14     State, of any waived recovery zone bond allocations.
15     Recovery zone bond allocations can be waived to the
16     Authority only by voluntary waiver as provided in this
17     Section.
18         (iii) In addition to the powers set forth in items (i)
19     and (ii), the Authority has any powers otherwise enjoyed by
20     the Authority in connection with the issuance of its bonds
21     if those powers are not in conflict with any provisions
22     with respect to recovery zone bonds set forth in ARRA.
23         (iv) The Authority has the power to adopt regulations
24     providing for the implementation of any of the provisions
25     contained in this Section, including provisions regarding
26     waiver agreements and the reallocation of all or any

 

 

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1     portion of the allocation amount and sub-allocations and
2     the issuance of recovery zone bonds; except that those
3     regulations shall not (1) apply to or affect any
4     designation of a recovery zone by a county or municipality,
5     (2) provide for any waiver or reallocation of an affected
6     local government's sub-allocation other than a voluntary
7     waiver as described in subsection (d), or (3) be
8     inconsistent with the provisions of subsection (d)(i).
9     Regulations adopted by the Authority for determining
10     reallocation of all or any portion of a waived recovery
11     zone bond allocation may include, but are not limited to,
12     (1) the ability of the county or municipality to issue
13     recovery zone bonds on or before December 31, 2010, (2) the
14     amount of jobs that will be retained or created, or both,
15     by the qualifying project to be financed by recovery zone
16     bonds, and (3) the geographical proximity of the qualifying
17     project to be financed by recovery zone bonds to a county
18     or municipality that voluntarily waived its sub-allocation
19     to the Authority.
20         (v) Unless extended by an act of the United States
21     Congress, no recovery zone bonds may be issued after
22     December 31, 2010.
 
23 (e) Established dates for notice.
24     Any affected local government or any regional authority
25 that has issued recovery zone bonds on or before the effective

 

 

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1 date of this Section must report its issuance of recovery zone
2 bonds to the Authority within 30 days after the effective date
3 of this Section. After the effective date of this Section, any
4 affected local government or any regional authority must report
5 its issuance of recovery zone bonds to the Authority not less
6 than 30 days after those bonds are issued.
 
7 (f) Reports to the General Assembly.
8     Starting 60 days after the effective date of this Section
9 and ending on January 15, 2011, the Authority shall file a
10 report before the 15th day of each month with the General
11 Assembly detailing its implementation of this Section,
12 including but not limited to the dollar amount of the
13 allocation amount that has been reallocated by the Authority
14 pursuant to this Section, the recovery zone bonds issued in the
15 State as of the date of the report, and descriptions of the
16 qualifying projects financed by those recovery zone bonds.
 
17     (20 ILCS 3501/825-110 new)
18     Sec. 825-110. Implementation of ARRA provisions regarding
19 qualified energy conservation bonds.
 
20 (a) Definitions.
21         (i) "Affected local government" means any county or
22     municipality within the State if the county or municipality
23     has a population of 100,000 or more, as defined in Section

 

 

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1     54D(e)(2)(C) of the Code.
2         (ii) "Allocation amount" means the $133,846,000 amount
3     of qualified energy conservation bonds authorized under
4     ARRA for the financing of qualifying projects located
5     within the State and the sub-allocation of those amounts
6     among each affected local government.
7         (iii) "ARRA" means, collectively, the American
8     Recovery and Reinvestment Act of 2009, including, without
9     limitation, Section 54D of the Code; the guidance provided
10     by the Internal Revenue Service applicable to qualified
11     energy conservation bonds; and any legislation
12     subsequently adopted by the United States Congress to
13     extend or expand the economic development bond financing
14     incentives authorized by ARRA.
15         (iv) "ARRA implementing regulations" means the
16     regulations promulgated by the Authority as further
17     described in subdivision (c)(iv) of this Section to
18     implement the provisions of this Section.
19         (v) "Code" means the Internal Revenue Code of 1986, as
20     amended.
21         (vi) "Qualified energy conservation bond" means any
22     qualified energy conservation bond issued pursuant to
23     Section 54D of the Code.
24         (vii) "Qualified energy conservation bond allocation"
25     means an allocation of authority to issue qualified energy
26     conservation bonds granted pursuant to Section 54D of the

 

 

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1     Code.
2         (viii) "Regional authority" means the Central Illinois
3     Economic Development Authority, Eastern Illinois Economic
4     Development Authority, Joliet Arsenal Development
5     Authority, Quad Cities Regional Economic Development
6     Authority, Riverdale Development Authority, Southeastern
7     Illinois Economic Development Authority, Southern Illinois
8     Development Authority, Southwestern Illinois Development
9     Authority, Tri-County River Valley Development Authority,
10     Upper Illinois River Valley Development Authority,
11     Illinois Urban Development Authority, Western Illinois
12     Economic Development Authority, or Will-Kankakee Regional
13     Development Authority.
14         (ix) "Sub-allocation" means the portion of the
15     allocation amount allocated to each affected local
16     government.
17         (x) "Waived qualified energy conservation bond
18     allocation" means the amount of the qualified energy
19     conservation bond allocation that an affected local
20     government elects to reallocate to the State pursuant to
21     Section 54D(e)(2)(B) of the Code.
22         (xi) "Waiver agreement" means an agreement between the
23     Authority and an affected local government providing for
24     the reallocation, in whole or in part, of that affected
25     local government's sub-allocation to the Authority. The
26     waiver agreement may provide for the payment of an affected

 

 

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1     local government's reasonable fees and costs as determined
2     by the Authority in connection with the affected local
3     government's reallocation of its sub-allocation.
 
4 (b) Findings.
5     It is found and declared that:
6         (i) it is in the public interest and for the benefit of
7     the State to maximize the use of economic development
8     incentives authorized by ARRA;
9         (ii) those incentives include the maximum use of the
10     allocation amount for the issuance of qualified energy
11     conservation bonds to promote energy conservation under
12     the applicable provisions of ARRA; and
13         (iii) those incentives also include the issuance by the
14     Authority of qualified energy conservation bonds for the
15     purposes of financing qualifying projects to be financed
16     with proceeds of qualified energy conservation bonds.
 
17 (c) Powers of Authority.
18         (i) In order to carry out the provisions of ARRA and
19     further the purposes of this Section, the Authority has:
20             (A) the power to receive from any affected local
21         government its sub-allocation that it voluntarily
22         waives to the Authority, in whole or in part, for
23         allocation by the Authority to a regional authority
24         specifically designated by that affected local

 

 

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1         government, and the Authority shall reallocate that
2         waived qualified energy conservation bond allocation
3         to the regional authority specifically designated by
4         that affected local government; provided that (1) the
5         affected local government must take official action by
6         resolution or ordinance, as applicable, to waive the
7         sub-allocation to the Authority and specifically
8         designate that its waived qualified energy
9         conservation bond allocation should be reallocated to
10         a regional authority; (2) the regional authority must
11         use the sub-allocation to issue qualified energy
12         conservation bonds on or before August 16, 2010 and, if
13         qualified energy conservation bonds are not issued on
14         or before August 16, 2010, the sub-allocation shall be
15         deemed waived to the Authority for reallocation by the
16         Authority to qualifying projects; and (3) the proceeds
17         of the qualified energy conservation bonds must be used
18         for qualified projects within the jurisdiction of the
19         applicable regional authority;
20             (B) at the Authority's sole discretion, the power
21         to reallocate any sub-allocation deemed waived to the
22         Authority pursuant to subsection (c)(i)(A)(2) back to
23         the Regional Authority that had the sub-allocation;
24             (C) the power to enter into waiver agreements with
25         affected local governments to provide for the
26         reallocation, in whole or in part, of their

 

 

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1         sub-allocations, to receive waived qualified energy
2         conservation bond allocations from those affected
3         local governments, and to use those waived qualified
4         energy conservation bond allocations, in whole or in
5         part, to issue qualified energy conservation bonds of
6         the Authority for qualifying projects or to reallocate
7         those qualified energy conservation bond allocations,
8         in whole or in part, to a county or municipality to
9         issue its own energy conservation bonds for qualifying
10         projects; and
11             (D) the power to issue qualified energy
12         conservation bonds for any project authorized to be
13         financed with proceeds thereof under the applicable
14         provisions of ARRA.
15         (ii) In addition to the powers set forth in item (i),
16     the Authority shall be the sole recipient, on behalf of the
17     State, of any waived qualified energy conservation bond
18     allocations. Qualified energy conservation bond
19     allocations can be reallocated to the Authority only by
20     voluntary waiver as provided in this Section.
21         (iii) In addition to the powers set forth in items (i)
22     and (ii), the Authority has any powers otherwise enjoyed by
23     the Authority in connection with the issuance of its bonds
24     if those powers are not in conflict with any provisions
25     with respect to qualified energy conservation bonds set
26     forth in ARRA.

 

 

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1         (iv) The Authority has the power to adopt regulations
2     providing for the implementation of any of the provisions
3     contained in this Section, including the provisions
4     regarding waiver agreements and reallocation of all or any
5     portion of the allocation amount and sub-allocations and
6     the issuance of qualified energy conservation bonds;
7     except that those regulations shall not (1) provide any
8     waiver or reallocation of an affected local government's
9     sub-allocation other than a voluntary waiver as described
10     in subsection (c) or (2) be inconsistent with the
11     provisions of subsection (c)(i). Regulations adopted by
12     the Authority for determining reallocation of all or any
13     portion of a waived qualified energy conservation
14     allocation may include, but are not limited to, (1) the
15     ability of the county or municipality to issue qualified
16     energy conservation bonds by the end of a given calendar
17     year, (2) the amount of jobs that will be retained or
18     created, or both, by the qualifying project to be financed
19     by qualified energy conservation bonds, and (3) the
20     geographical proximity of the qualifying project to be
21     financed by qualified energy conservation bonds to a
22     municipality or county that reallocated its sub-allocation
23     to the Authority.
 
24 (d) Established dates for notice.
25     Any affected local government or regional authority that

 

 

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1 has issued qualified energy conservation bonds on or before the
2 effective date of this Section must report its issuance of
3 qualified energy conservation bonds to the Authority within 30
4 days after the effective date of this Section. After the
5 effective date of this Section, any affected local government
6 or any regional authority must report its issuance of qualified
7 energy conservation bonds to the Authority not less than 30
8 days after those bonds are issued.
 
9 (e) Reports to the General Assembly.
10     Starting 60 days after the effective date of this Section
11 and ending when there is no longer any allocation amount, the
12 Authority shall file a report before the 15th day of each month
13 with the General Assembly detailing its implementation of this
14 Section, including but not limited to the dollar amount of the
15 allocation amount that has been reallocated by the Authority
16 pursuant to this Section, the qualified energy conservation
17 bonds issued in the State as of the date of the report, and
18 descriptions of the qualifying projects financed by those
19 qualified energy conservation bonds.
 
20     Section 99. Effective date. This Act takes effect upon
21 becoming law.".