HB4445 EnrolledLRB097 14628 KMW 59508 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Southeastern Illinois Economic Development
5Authority Act is amended by changing Sections 20, 25, and 35 as
6follows:
 
7    (70 ILCS 518/20)
8    Sec. 20. Creation.
9    (a) There is created a political subdivision, body politic,
10and municipal corporation named the Southeastern Illinois
11Economic Development Authority. The territorial jurisdiction
12of the Authority is that geographic area within the boundaries
13of the following counties: Fayette, Cumberland, Clark,
14Effingham, Jasper, Crawford, Marion, Clay, Richland, Lawrence,
15Jefferson, Wayne, Edwards, Wabash, Hamilton, and White;
16Irvington Township in Washington County; and any navigable
17waters and air space located therein.
18    (b) The governing and administrative powers of the
19Authority shall be vested in a body consisting of 27 10 members
20as follows:
21        (1) Public members. Nine members shall be appointed by
22    the Governor with the advice and consent of the Senate. The
23    county board chairmen of the following counties shall each

 

 

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1    appoint one member: Clark, Clay, Crawford, Cumberland,
2    Edwards, Effingham, Fayette, Hamilton, Jasper, Jefferson,
3    Lawrence, Marion, Richland, Wabash, Washington, Wayne, and
4    White.
5        (2) One member shall be appointed by the Director of
6    Commerce and Economic Opportunity.
7    All public members shall reside within the territorial
8jurisdiction of the Authority. The public members shall be
9persons of recognized ability and experience in one or more of
10the following areas: economic development, finance, banking,
11industrial development, state or local government, commercial
12agriculture, small business management, real estate
13development, community development, venture finance, organized
14labor, or civic or community organization.
15    (c) Fourteen Six members shall constitute a quorum.
16    (d) The chairman of the Authority shall be elected annually
17by the Board.
18    (e) The terms of the all initial members of the Authority
19shall begin 30 days after the effective date of this Act. Of
20the 10 original members appointed by the Governor and the
21Director of Commerce and Economic Opportunity pursuant to
22subsection (b), one shall serve until the third Monday in
23January, 2005; one shall serve until the third Monday in
24January, 2006; 2 shall serve until the third Monday in January,
252007; 2 shall serve until the third Monday in January, 2008; 2
26shall serve until the third Monday in January, 2009; and 2

 

 

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1shall serve until the third Monday in January, 2010. The terms
2of the initial public members of the Authority appointed by the
3county board chairmen shall begin 30 days after the effective
4date of this amendatory Act of the 97th General Assembly. The
5terms of the initial public members appointed by the county
6board chairmen shall be determined by lot, according to the
7following schedule: (i) 4 shall serve until the third Monday in
8January, 2013, (ii) 4 shall serve until the third Monday in
9January, 2014, (iii) 3 shall serve until the third Monday in
10January, 2015, (iv) 3 shall serve until the third Monday in
11January, 2016, and (v) 3 shall serve until the third Monday in
12January, 2017. All successors to these initial members shall be
13appointed by the original appointing authority All successors
14to these original public members shall be appointed by the
15Governor with the advice and consent of the Senate, or by the
16Director of Commerce and Economic Opportunity, as the case may
17be, pursuant to subsection (b), and shall hold office for a
18term of 3 years commencing the third Monday in January of the
19year in which their term commences, except in the case of an
20appointment to fill a vacancy. Vacancies occurring among the
21public members shall be filled for the remainder of the term.
22In case of a vacancy in a Governor-appointed membership when
23the Senate is not in session, the Governor may make a temporary
24appointment until the next meeting of the Senate when a person
25shall be nominated to fill the office and, upon confirmation by
26the Senate, he or she shall hold office during the remainder of

 

 

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1the term and until a successor is appointed and qualified.
2Members of the Authority are not entitled to compensation for
3their services as members but are entitled to reimbursement for
4all necessary expenses incurred in connection with the
5performance of their duties as members. Members of the Board
6may participate in Board meetings by teleconference or video
7conference.
8    (f) The Governor may remove any public member of the
9Authority appointed by the Governor, and the Director of
10Commerce and Economic Opportunity may remove any public member
11appointed by the Director, in case of incompetence, neglect of
12duty, or malfeasance in office. The chairman of a county board,
13with the approval of a majority vote of the county board, may
14remove any public member appointed by that chairman in the case
15of incompetence, neglect of duty, or malfeasance in office.
16    (g) The Board shall appoint an Executive Director who shall
17have a background in finance, including familiarity with the
18legal and procedural requirements of issuing bonds, real
19estate, or economic development and administration. The
20Executive Director shall hold office at the discretion of the
21Board. The Executive Director shall be the chief administrative
22and operational officer of the Authority, shall direct and
23supervise its administrative affairs and general management,
24perform such other duties as may be prescribed from time to
25time by the members, and receive compensation fixed by the
26Authority. The Executive Director shall attend all meetings of

 

 

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1the Authority. However, no action of the Authority shall be
2invalid on account of the absence of the Executive Director
3from a meeting. The Authority may engage the services of the
4Illinois Finance Authority, attorneys, appraisers, engineers,
5accountants, credit analysts, and other consultants, if the
6Southeastern Illinois Economic Development Authority deems it
7advisable.
8(Source: P.A. 93-968, eff. 8-20-04; 94-613, eff. 8-18-05.)
 
9    (70 ILCS 518/25)
10    Sec. 25. Duty. All official acts of the Authority shall
11require the approval of at least 14 6 members. It shall be the
12duty of the Authority to promote development within the
13territorial jurisdiction of the Authority. The Authority shall
14use the powers conferred upon it to assist in the development,
15construction, and acquisition of industrial, commercial,
16housing, or residential projects within its territorial
17jurisdiction.
18(Source: P.A. 93-968, eff. 8-20-04; 94-613, eff. 8-18-05.)
 
19    (70 ILCS 518/35)
20    Sec. 35. Bonds.
21    (a) The Authority, with the written approval of the
22Governor, shall have the continuing power to issue bonds,
23notes, or other evidences of indebtedness in an aggregate
24amount not to exceed $250,000,000 for the following purposes:

 

 

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1(i) development, construction, acquisition, or improvement of
2projects, including those established by business entities
3locating or expanding property within the territorial
4jurisdiction of the Authority; (ii) entering into venture
5capital agreements with businesses locating or expanding
6within the territorial jurisdiction of the Authority; (iii)
7acquisition and improvement of any property necessary and
8useful in connection therewith; and (iv) for the purposes of
9the Employee Ownership Assistance Act. For the purpose of
10evidencing the obligations of the Authority to repay any money
11borrowed, the Authority may, pursuant to resolution, from time
12to time, issue and dispose of its interest-bearing revenue
13bonds, notes, or other evidences of indebtedness and may also
14from time to time issue and dispose of such bonds, notes, or
15other evidences of indebtedness to refund, at maturity, at a
16redemption date or in advance of either, any bonds, notes, or
17other evidences of indebtedness pursuant to redemption
18provisions or at any time before maturity. All such bonds,
19notes, or other evidences of indebtedness shall be payable
20solely and only from the revenues or income to be derived from
21loans made with respect to projects, from the leasing or sale
22of the projects, or from any other funds available to the
23Authority for such purposes. The bonds, notes, or other
24evidences of indebtedness may bear such date or dates, may
25mature at such time or times not exceeding 40 years from their
26respective dates, may bear interest at such rate or rates not

 

 

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1exceeding the maximum rate permitted by the Bond Authorization
2Act, may be in such form, may carry such registration
3privileges, may be executed in such manner, may be payable at
4such place or places, may be made subject to redemption in such
5manner and upon such terms, with or without premium, as is
6stated on the face thereof, may be authenticated in such manner
7and may contain such terms and covenants as may be provided by
8an applicable resolution.
9    (b) The holder or holders of any bonds, notes, or other
10evidences of indebtedness issued by the Authority may bring
11suits at law or proceedings in equity to compel the performance
12and observance by any corporation or person or by the Authority
13or any of its agents or employees of any contract or covenant
14made with the holders of the bonds, notes, or other evidences
15of indebtedness, to compel such corporation, person, the
16Authority, and any of its agents or employees to perform any
17duties required to be performed for the benefit of the holders
18of the bonds, notes, or other evidences of indebtedness by the
19provision of the resolution authorizing their issuance and to
20enjoin the corporation, person, the Authority, and any of its
21agents or employees from taking any action in conflict with any
22contract or covenant.
23    (c) If the Authority fails to pay the principal of or
24interest on any of the bonds or premium, if any, as the bond
25becomes due, a civil action to compel payment may be instituted
26in the appropriate circuit court by the holder or holders of

 

 

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1the bonds on which the default of payment exists or by an
2indenture trustee acting on behalf of the holders. Delivery of
3a summons and a copy of the complaint to the chairman of the
4Board shall constitute sufficient service to give the circuit
5court jurisdiction over the subject matter of the suit and
6jurisdiction over the Authority and its officers named as
7defendants for the purpose of compelling such payment. Any
8case, controversy, or cause of action concerning the validity
9of this Act relates to the revenue of the State of Illinois.
10    (d) Notwithstanding the form and tenor of any bond, note,
11or other evidence of indebtedness and in the absence of any
12express recital on its face that it is non-negotiable, all such
13bonds, notes, and other evidences of indebtedness shall be
14negotiable instruments. Pending the preparation and execution
15of any bonds, notes, or other evidences of indebtedness,
16temporary bonds, notes, or evidences of indebtedness may be
17issued as provided by ordinance.
18    (e) To secure the payment of any or all of such bonds,
19notes, or other evidences of indebtedness, the revenues to be
20received by the Authority from a lease agreement or loan
21agreement shall be pledged, and, for the purpose of setting
22forth the covenants and undertakings of the Authority in
23connection with the issuance of the bonds, notes, or other
24evidences of indebtedness and the issuance of any additional
25bonds, notes or other evidences of indebtedness payable from
26such revenues, income, or other funds to be derived from

 

 

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1projects, the Authority may execute and deliver a mortgage or
2trust agreement. A remedy for any breach or default of the
3terms of any mortgage or trust agreement by the Authority may
4be by mandamus proceeding in the appropriate circuit court to
5compel performance and compliance under the terms of the
6mortgage or trust agreement, but the trust agreement may
7prescribe by whom or on whose behalf the action may be
8instituted.
9    (f) Bonds or notes shall be secured as provided in the
10authorizing ordinance which may include, notwithstanding any
11other provision of this Act, in addition to any other security,
12a specific pledge, assignment of and lien on, or security
13interest in any or all revenues or money of the Authority, from
14whatever source, which may, by law, be used for debt service
15purposes and a specific pledge, or assignment of and lien on,
16or security interest in any funds or accounts established or
17provided for by ordinance of the Authority authorizing the
18issuance of the bonds or notes.
19    (g) In the event that the Authority determines that moneys
20of the Authority will not be sufficient for the payment of the
21principal of and interest on its bonds during the next State
22fiscal year, the chairman, as soon as practicable, shall
23certify to the Governor the amount required by the Authority to
24enable it to pay the principal of and interest on the bonds.
25The Governor shall submit the certified amount to the General
26Assembly as soon as practicable, but no later than the end of

 

 

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1the current State fiscal year. This Section shall not apply to
2any bonds or notes to which the Authority determines, in the
3resolution authorizing the issuance of the bonds or notes, that
4this Section shall not apply. Whenever the Authority makes this
5determination, it shall be plainly stated on the face of the
6bonds or notes and the determination shall also be reported to
7the Governor. In the event of a withdrawal of moneys from a
8reserve fund established with respect to any issue or issues of
9bonds of the Authority to pay principal or interest on those
10bonds, the chairman of the Authority, as soon as practicable,
11shall certify to the Governor the amount required to restore
12the reserve fund to the level required in the resolution or
13indenture securing those bonds. The Governor shall submit the
14certified amount to the General Assembly as soon as
15practicable, but no later than the end of the current State
16fiscal year. This subsection (g) shall not apply to any bond
17issued on or after the effective date of this amendatory Act of
18the 97th General Assembly.
19    (h) The State of Illinois pledges to and agrees with the
20holders of the bonds and notes of the Authority issued pursuant
21to this Section that the State will not limit or alter the
22rights and powers vested in the Authority by this Act so as to
23impair the terms of any contract made by the Authority with the
24holders of bonds or notes or in any way impair the rights and
25remedies of those holders until the bonds and notes, together
26with interest thereon, with interest on any unpaid installments

 

 

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1of interest, and all costs and expenses in connection with any
2action or proceedings by or on behalf of the holders, are fully
3met and discharged. In addition, the State pledges to and
4agrees with the holders of the bonds and notes of the Authority
5issued pursuant to this Section that the State will not limit
6or alter the basis on which State funds are to be paid to the
7Authority as provided in this Act, or the use of such funds, so
8as to impair the terms of any such contract. The Authority is
9authorized to include these pledges and agreements of the State
10in any contract with the holders of bonds or notes issued
11pursuant to this Section.
12(Source: P.A. 93-968, eff. 8-20-04.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.