Public Act 097-0717
 
HB4445 EnrolledLRB097 14628 KMW 59508 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Southeastern Illinois Economic Development
Authority Act is amended by changing Sections 20, 25, and 35 as
follows:
 
    (70 ILCS 518/20)
    Sec. 20. Creation.
    (a) There is created a political subdivision, body politic,
and municipal corporation named the Southeastern Illinois
Economic Development Authority. The territorial jurisdiction
of the Authority is that geographic area within the boundaries
of the following counties: Fayette, Cumberland, Clark,
Effingham, Jasper, Crawford, Marion, Clay, Richland, Lawrence,
Jefferson, Wayne, Edwards, Wabash, Hamilton, and White;
Irvington Township in Washington County; and any navigable
waters and air space located therein.
    (b) The governing and administrative powers of the
Authority shall be vested in a body consisting of 27 10 members
as follows:
        (1) Public members. Nine members shall be appointed by
    the Governor with the advice and consent of the Senate. The
    county board chairmen of the following counties shall each
    appoint one member: Clark, Clay, Crawford, Cumberland,
    Edwards, Effingham, Fayette, Hamilton, Jasper, Jefferson,
    Lawrence, Marion, Richland, Wabash, Washington, Wayne, and
    White.
        (2) One member shall be appointed by the Director of
    Commerce and Economic Opportunity.
    All public members shall reside within the territorial
jurisdiction of the Authority. The public members shall be
persons of recognized ability and experience in one or more of
the following areas: economic development, finance, banking,
industrial development, state or local government, commercial
agriculture, small business management, real estate
development, community development, venture finance, organized
labor, or civic or community organization.
    (c) Fourteen Six members shall constitute a quorum.
    (d) The chairman of the Authority shall be elected annually
by the Board.
    (e) The terms of the all initial members of the Authority
shall begin 30 days after the effective date of this Act. Of
the 10 original members appointed by the Governor and the
Director of Commerce and Economic Opportunity pursuant to
subsection (b), one shall serve until the third Monday in
January, 2005; one shall serve until the third Monday in
January, 2006; 2 shall serve until the third Monday in January,
2007; 2 shall serve until the third Monday in January, 2008; 2
shall serve until the third Monday in January, 2009; and 2
shall serve until the third Monday in January, 2010. The terms
of the initial public members of the Authority appointed by the
county board chairmen shall begin 30 days after the effective
date of this amendatory Act of the 97th General Assembly. The
terms of the initial public members appointed by the county
board chairmen shall be determined by lot, according to the
following schedule: (i) 4 shall serve until the third Monday in
January, 2013, (ii) 4 shall serve until the third Monday in
January, 2014, (iii) 3 shall serve until the third Monday in
January, 2015, (iv) 3 shall serve until the third Monday in
January, 2016, and (v) 3 shall serve until the third Monday in
January, 2017. All successors to these initial members shall be
appointed by the original appointing authority All successors
to these original public members shall be appointed by the
Governor with the advice and consent of the Senate, or by the
Director of Commerce and Economic Opportunity, as the case may
be, pursuant to subsection (b), and shall hold office for a
term of 3 years commencing the third Monday in January of the
year in which their term commences, except in the case of an
appointment to fill a vacancy. Vacancies occurring among the
public members shall be filled for the remainder of the term.
In case of a vacancy in a Governor-appointed membership when
the Senate is not in session, the Governor may make a temporary
appointment until the next meeting of the Senate when a person
shall be nominated to fill the office and, upon confirmation by
the Senate, he or she shall hold office during the remainder of
the term and until a successor is appointed and qualified.
Members of the Authority are not entitled to compensation for
their services as members but are entitled to reimbursement for
all necessary expenses incurred in connection with the
performance of their duties as members. Members of the Board
may participate in Board meetings by teleconference or video
conference.
    (f) The Governor may remove any public member of the
Authority appointed by the Governor, and the Director of
Commerce and Economic Opportunity may remove any public member
appointed by the Director, in case of incompetence, neglect of
duty, or malfeasance in office. The chairman of a county board,
with the approval of a majority vote of the county board, may
remove any public member appointed by that chairman in the case
of incompetence, neglect of duty, or malfeasance in office.
    (g) The Board shall appoint an Executive Director who shall
have a background in finance, including familiarity with the
legal and procedural requirements of issuing bonds, real
estate, or economic development and administration. The
Executive Director shall hold office at the discretion of the
Board. The Executive Director shall be the chief administrative
and operational officer of the Authority, shall direct and
supervise its administrative affairs and general management,
perform such other duties as may be prescribed from time to
time by the members, and receive compensation fixed by the
Authority. The Executive Director shall attend all meetings of
the Authority. However, no action of the Authority shall be
invalid on account of the absence of the Executive Director
from a meeting. The Authority may engage the services of the
Illinois Finance Authority, attorneys, appraisers, engineers,
accountants, credit analysts, and other consultants, if the
Southeastern Illinois Economic Development Authority deems it
advisable.
(Source: P.A. 93-968, eff. 8-20-04; 94-613, eff. 8-18-05.)
 
    (70 ILCS 518/25)
    Sec. 25. Duty. All official acts of the Authority shall
require the approval of at least 14 6 members. It shall be the
duty of the Authority to promote development within the
territorial jurisdiction of the Authority. The Authority shall
use the powers conferred upon it to assist in the development,
construction, and acquisition of industrial, commercial,
housing, or residential projects within its territorial
jurisdiction.
(Source: P.A. 93-968, eff. 8-20-04; 94-613, eff. 8-18-05.)
 
    (70 ILCS 518/35)
    Sec. 35. Bonds.
    (a) The Authority, with the written approval of the
Governor, shall have the continuing power to issue bonds,
notes, or other evidences of indebtedness in an aggregate
amount not to exceed $250,000,000 for the following purposes:
(i) development, construction, acquisition, or improvement of
projects, including those established by business entities
locating or expanding property within the territorial
jurisdiction of the Authority; (ii) entering into venture
capital agreements with businesses locating or expanding
within the territorial jurisdiction of the Authority; (iii)
acquisition and improvement of any property necessary and
useful in connection therewith; and (iv) for the purposes of
the Employee Ownership Assistance Act. For the purpose of
evidencing the obligations of the Authority to repay any money
borrowed, the Authority may, pursuant to resolution, from time
to time, issue and dispose of its interest-bearing revenue
bonds, notes, or other evidences of indebtedness and may also
from time to time issue and dispose of such bonds, notes, or
other evidences of indebtedness to refund, at maturity, at a
redemption date or in advance of either, any bonds, notes, or
other evidences of indebtedness pursuant to redemption
provisions or at any time before maturity. All such bonds,
notes, or other evidences of indebtedness shall be payable
solely and only from the revenues or income to be derived from
loans made with respect to projects, from the leasing or sale
of the projects, or from any other funds available to the
Authority for such purposes. The bonds, notes, or other
evidences of indebtedness may bear such date or dates, may
mature at such time or times not exceeding 40 years from their
respective dates, may bear interest at such rate or rates not
exceeding the maximum rate permitted by the Bond Authorization
Act, may be in such form, may carry such registration
privileges, may be executed in such manner, may be payable at
such place or places, may be made subject to redemption in such
manner and upon such terms, with or without premium, as is
stated on the face thereof, may be authenticated in such manner
and may contain such terms and covenants as may be provided by
an applicable resolution.
    (b) The holder or holders of any bonds, notes, or other
evidences of indebtedness issued by the Authority may bring
suits at law or proceedings in equity to compel the performance
and observance by any corporation or person or by the Authority
or any of its agents or employees of any contract or covenant
made with the holders of the bonds, notes, or other evidences
of indebtedness, to compel such corporation, person, the
Authority, and any of its agents or employees to perform any
duties required to be performed for the benefit of the holders
of the bonds, notes, or other evidences of indebtedness by the
provision of the resolution authorizing their issuance and to
enjoin the corporation, person, the Authority, and any of its
agents or employees from taking any action in conflict with any
contract or covenant.
    (c) If the Authority fails to pay the principal of or
interest on any of the bonds or premium, if any, as the bond
becomes due, a civil action to compel payment may be instituted
in the appropriate circuit court by the holder or holders of
the bonds on which the default of payment exists or by an
indenture trustee acting on behalf of the holders. Delivery of
a summons and a copy of the complaint to the chairman of the
Board shall constitute sufficient service to give the circuit
court jurisdiction over the subject matter of the suit and
jurisdiction over the Authority and its officers named as
defendants for the purpose of compelling such payment. Any
case, controversy, or cause of action concerning the validity
of this Act relates to the revenue of the State of Illinois.
    (d) Notwithstanding the form and tenor of any bond, note,
or other evidence of indebtedness and in the absence of any
express recital on its face that it is non-negotiable, all such
bonds, notes, and other evidences of indebtedness shall be
negotiable instruments. Pending the preparation and execution
of any bonds, notes, or other evidences of indebtedness,
temporary bonds, notes, or evidences of indebtedness may be
issued as provided by ordinance.
    (e) To secure the payment of any or all of such bonds,
notes, or other evidences of indebtedness, the revenues to be
received by the Authority from a lease agreement or loan
agreement shall be pledged, and, for the purpose of setting
forth the covenants and undertakings of the Authority in
connection with the issuance of the bonds, notes, or other
evidences of indebtedness and the issuance of any additional
bonds, notes or other evidences of indebtedness payable from
such revenues, income, or other funds to be derived from
projects, the Authority may execute and deliver a mortgage or
trust agreement. A remedy for any breach or default of the
terms of any mortgage or trust agreement by the Authority may
be by mandamus proceeding in the appropriate circuit court to
compel performance and compliance under the terms of the
mortgage or trust agreement, but the trust agreement may
prescribe by whom or on whose behalf the action may be
instituted.
    (f) Bonds or notes shall be secured as provided in the
authorizing ordinance which may include, notwithstanding any
other provision of this Act, in addition to any other security,
a specific pledge, assignment of and lien on, or security
interest in any or all revenues or money of the Authority, from
whatever source, which may, by law, be used for debt service
purposes and a specific pledge, or assignment of and lien on,
or security interest in any funds or accounts established or
provided for by ordinance of the Authority authorizing the
issuance of the bonds or notes.
    (g) In the event that the Authority determines that moneys
of the Authority will not be sufficient for the payment of the
principal of and interest on its bonds during the next State
fiscal year, the chairman, as soon as practicable, shall
certify to the Governor the amount required by the Authority to
enable it to pay the principal of and interest on the bonds.
The Governor shall submit the certified amount to the General
Assembly as soon as practicable, but no later than the end of
the current State fiscal year. This Section shall not apply to
any bonds or notes to which the Authority determines, in the
resolution authorizing the issuance of the bonds or notes, that
this Section shall not apply. Whenever the Authority makes this
determination, it shall be plainly stated on the face of the
bonds or notes and the determination shall also be reported to
the Governor. In the event of a withdrawal of moneys from a
reserve fund established with respect to any issue or issues of
bonds of the Authority to pay principal or interest on those
bonds, the chairman of the Authority, as soon as practicable,
shall certify to the Governor the amount required to restore
the reserve fund to the level required in the resolution or
indenture securing those bonds. The Governor shall submit the
certified amount to the General Assembly as soon as
practicable, but no later than the end of the current State
fiscal year. This subsection (g) shall not apply to any bond
issued on or after the effective date of this amendatory Act of
the 97th General Assembly.
    (h) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Authority issued pursuant
to this Section that the State will not limit or alter the
rights and powers vested in the Authority by this Act so as to
impair the terms of any contract made by the Authority with the
holders of bonds or notes or in any way impair the rights and
remedies of those holders until the bonds and notes, together
with interest thereon, with interest on any unpaid installments
of interest, and all costs and expenses in connection with any
action or proceedings by or on behalf of the holders, are fully
met and discharged. In addition, the State pledges to and
agrees with the holders of the bonds and notes of the Authority
issued pursuant to this Section that the State will not limit
or alter the basis on which State funds are to be paid to the
Authority as provided in this Act, or the use of such funds, so
as to impair the terms of any such contract. The Authority is
authorized to include these pledges and agreements of the State
in any contract with the holders of bonds or notes issued
pursuant to this Section.
(Source: P.A. 93-968, eff. 8-20-04.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.