093_HB3562eng HB3562 Engrossed LRB093 10161 BDD 10415 b 1 AN ACT concerning economic recovery. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Economic Recovery Act. 6 Section 5. Legislative intent. It is hereby declared to 7 be the purpose of this Act and of the Illinois Economic 8 Recovery Program created by this Act to develop a diversified 9 State economy, to assist business enterprise in obtaining 10 additional sources of financing, to aid this State in 11 achieving the goal of long-term economic growth, to preserve 12 existing jobs, to create new jobs, and to foster export 13 activity. 14 Section 10. Definitions. (Blank.) 15 Section 15. Illinois Economic Recovery Program. 16 (a) There is created a public body corporate and politic 17 that shall be known as the Illinois Economic Recovery 18 Program. 19 (b) The powers and duties of the Program are vested in 20 and shall be exercised by a Board of Directors. 21 (c) The Board shall consist of 7 members, no more than 4 22 of whom may be of the same political party, 5 of whom shall 23 be appointed by the Governor, by and with the consent of the 24 Senate. The Lieutenant Governor, ex officio, or the 25 Lieutenant Governor's designee shall serve as a member of the 26 Board, and the Lieutenant Governor shall appoint one member. 27 If the Governor does not appoint these members by January 1, 28 2004, this appointment power is transferred to the Lieutenant 29 Governor with the advice and consent of the Senate. Three of HB3562 Engrossed -2- LRB093 10161 BDD 10415 b 1 the appointed Board members shall be current or former 2 commercial or investment bankers. The remaining members shall 3 be representatives of the private sector. No person may be 4 appointed as a member of the Board who is serving as an 5 elected official for the State or an employee of the State or 6 any unit of local government or school district within the 7 State. The Chairman shall be elected annually from the 8 members of the Board. All members shall be residents of the 9 State and shall be knowledgeable in the field of finance. If 10 the Senate is not in session when the first appointments are 11 made, the Governor shall make temporary appointments as in 12 the case of a vacancy. In making the first appointments, the 13 Governor shall designate 3 members to serve until January of 14 2005 and 2 members to serve until January of 2006, or until 15 their successors are appointed and qualified. The member 16 appointed by the Lieutenant Governor shall serve until 17 January of 2007, or until a successor is appointed and 18 qualified. Their successors shall be appointed to serve for 19 3-year terms expiring on the third Monday in January or until 20 their successors are appointed and qualified. Any vacancy 21 occurring on the Board, whether by death, resignation, or 22 otherwise, shall be filled by appointment by the Governor or 23 Lieutenant Governor, as the case may be, in the same manner 24 as original appointments. A member appointed to fill a 25 vacancy shall serve for the remainder of the unexpired term 26 or until his or her successor is qualified. 27 Section 20. Related financial interests. No member of 28 the Board shall be employed by, hold any official relation 29 to, or have any financial interest in any corporation or 30 entity receiving loans, advances, or grants under this Act or 31 in any corporation or entity providing services or materials 32 to the Board or to any economic recovery project financed or 33 assisted under this Act. HB3562 Engrossed -3- LRB093 10161 BDD 10415 b 1 Section 25. Illinois Economic Recovery Program powers 2 and duties. The Program shall have the powers necessary to or 3 convenient to carry out and effectuate the purposes, 4 objectives, and provisions of this Act, the purposes and 5 objectives of the Program, and the powers delegated by other 6 law including, but not limited to, the power to do the 7 following: 8 (1) Sue and be sued; to have a seal and alter the 9 same at pleasure; to have perpetual succession; to make, 10 execute, and deliver contracts, conveyances, and other 11 instruments necessary or convenient to the exercise of 12 its powers; and to make and amend bylaws. 13 (2) Solicit and accept gifts, grants, loans, and 14 other aids from any person, foundation, or the federal, 15 State, or a local government or any agency of the 16 federal, State, or a local government, or to participate 17 in any other way in any federal, State, or local 18 government program. 19 (3) Procure insurance against any loss in 20 connection with the Program's property, assets, or 21 activities. 22 (4) Invest any money of the Fund at the Program's 23 discretion, in any obligations determined proper by the 24 Program, and name and use depositories for its money. The 25 Board shall perform the custodial and investment 26 functions of the Program. 27 (5) Engage personnel as necessary, and engage the 28 services of private consultants, managers, counsel, and 29 auditors for rendering professional management and 30 technical assistance and advice, payable out of any money 31 of the fund legally available for this purpose. 32 (6) Charge, impose, and collect fees and charges in 33 connection with any transaction and provide for 34 reasonable penalties for delinquent payment of fees or HB3562 Engrossed -4- LRB093 10161 BDD 10415 b 1 charges. 2 (7) Do all other things necessary or convenient to 3 achieve the objectives and purposes of the Program, this 4 Act, or other laws that relate to the purposes and 5 responsibilities of the Program. 6 (8) The Board shall establish, implement, and 7 operate a Portfolio Risk Insurance Reserve Fund as 8 defined in this Act. 9 Section 30. Annual status report; audit; evaluation 10 procedures. The accounts and the books of the Program shall 11 be set up and maintained in a manner approved by the Auditor 12 General, and the Program shall file with the Auditor General 13 a certified annual report within 120 days after the close of 14 the fiscal year. The Program shall also file with the 15 Governor, the Secretary of the Senate, the Clerk of the House 16 of Representatives, and the Illinois Economic and Fiscal 17 Commission, by March 1 of each year, a written report 18 covering its activities for the previous calendar year, and 19 when so filed, the report shall be a public record and open 20 for inspection at the offices of the Program during normal 21 business hours. The report shall include, but need not be 22 limited to, the following: 23 (1) The name and location of all participating 24 financial institutions under the Program. 25 (2) A record of loan and reserve fund activity in 26 each participating financial institution's account. 27 (3) A list of the number and type of persons or 28 entities, by financial institution, assisted under this 29 Act. 30 (4) The duration, type, amount, and status of loans 31 made, by financial institution, under this Act. 32 (5) A list of loss claims on each participating 33 financial institution's account by name of the person or HB3562 Engrossed -5- LRB093 10161 BDD 10415 b 1 entity that defaulted on the loan. 2 (6) The projected activities of the Program for the 3 next fiscal year including the amount of financial 4 assistance needed to operate the Program. 5 Section 35. Operations of the Board. 6 (a) As soon as practical after creation of the Program, 7 the Board shall hold a meeting at which the bylaws and 8 schedule of regular meetings shall be adopted. The bylaws and 9 schedule may be amended from time to time at the will of the 10 Board. 11 (b) Initial operating staff and expenses of the Program 12 shall be provided by appropriations lawfully made by the 13 General Assembly. As soon as may be practical, the Board 14 shall provide for its expenses and payment of employees, 15 including salaries and contractual agreements, from its 16 operations from up to one-half of the investment earnings of 17 the Fund. The remainder of the investment earnings on the 18 fund shall be reinvested in the Fund by the Board. 19 Section 40. Portfolio Risk Insurance Reserve Fund; 20 establishment and operation. There is hereby created outside 21 of the State treasury a special fund to be known as the 22 Portfolio Risk Insurance Reserve Fund. The General Assembly 23 shall appropriate from such funds as the General Assembly 24 deems necessary and sufficient to maintain the Fund. The 25 Board shall be the custodian of the Fund. 26 Section 45. Loan Insurance Account; payments into 27 accounts; transfer of money. 28 (a) The Fund shall initially consist of $10,000,000 or 29 such other amounts appropriated by the General Assembly. The 30 Fund shall be established and managed by the Board and shall 31 consist of an unallocated account and accounts established by HB3562 Engrossed -6- LRB093 10161 BDD 10415 b 1 participating financial institutions. 2 (b) The Board shall also pay into the Fund any money 3 appropriated or otherwise provided by this State for the 4 purposes of this Act; and any other money made available to 5 the Program for the purposes of this Act from any other 6 source, public or private. 7 (c) Any financial institution, as provided in this Act, 8 may participate in the Illinois Economic Recovery Program 9 upon signing a participation agreement with the Program. A 10 Loan Insurance Account shall be established in the name of 11 each financial institution participating in the Program. The 12 Board may add money to this account from the Fund, the 13 participating financial institution, and persons or entities 14 borrowing from that financial institution under the Illinois 15 Economic Recovery Program. Money may be withdrawn from this 16 account only by the participating financial institution as 17 prescribed in Section 50 or by the Board if a transaction is 18 deemed voidable as prescribed in Section 20. This account is 19 between the Program and the participating financial 20 institution and is not affected by other participating 21 financial institutions. 22 Section 50. Agreements with lenders. The agreements with 23 lenders for participation in the Illinois Economic Recovery 24 Program may include, but need not be limited to, the 25 following: 26 (1) Authorization for the lender to determine, 27 collect, and transmit to the Fund a fee or premium charge 28 based upon the amount of the loan to be covered by the 29 loan insurance account within a specified range 30 established consistent with the purposes and objectives 31 of the Program. 32 (2) Specification of whether the premium charge 33 shall be paid by the lender, the borrower, the Program, HB3562 Engrossed -7- LRB093 10161 BDD 10415 b 1 or by a combination thereof in specified portions. The 2 premium charges paid by the borrower and the lender may 3 be financed. 4 (3) The procedure by which a lender may make a 5 claim upon the account upon default by the borrower and 6 the conditions under which a claim may be made. 7 (4) The maximum amount of claims a lender may make 8 upon the Fund. That amount may be equal to, greater than, 9 or less than its proportion of the total premiums 10 collected by the Fund. 11 Section 55. Illinois Economic Recovery Fund. There is 12 hereby created in the State treasury a special Fund, which 13 shall be known as the Illinois Economic Recovery Fund, which 14 shall be maintained subject to appropriation for purposes of 15 economic investment in the future economic strength of 16 Illinois. 17 Section 95. The State Finance Act is amended by adding 18 Section 5.595 as follows: 19 (30 ILCS 105/5.595 new) 20 Sec. 5.595. The Illinois Economic Recovery Fund.