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Public Act 096-1020 |
HB2369 Enrolled | LRB096 10118 JAM 20284 b |
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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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
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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
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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 |
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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 |
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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 |
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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
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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 |
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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 |
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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 |
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(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). |
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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. |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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(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.
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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