HB5185 97TH GENERAL ASSEMBLY

LRB097 19623 PJG 64877 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5185

Introduced 2/8/2012, by Rep. Rita Mayfield

SYNOPSIS AS INTRODUCED:

20 ILCS 3501/825-80
20 ILCS 3501/825-81
20 ILCS 3501/825-85
20 ILCS 3501/825-87 new

Amends the Illinois Finance Authority Act. Provides that the Illinois Finance Authority and the State Fire Marshal may (rather than shall) jointly administer a fire truck revolving loan program and an ambulance revolving loan program. Provides that the Authority may use loans and guarantees authorized by the fire truck revolving loan program, the fire station revolving loan program, and the ambulance revolving loan program to maximize the number of participants in those programs and to maximize the efficient use of taxpayer appropriated funds. Provides that the Authority may determine the financial structure of loans or guarantees authorized by those programs. Provides that the Authority and the State Fire Marshall may access the funds associated with those programs and may charge and collect fees in connection with those programs. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Finance Authority Act is amended by changing Sections 825-80, 825-81, and 825-85 and by adding Section 825-87 as follows:

(20 ILCS 3501/825-80)

Sec. 825-80. Fire truck revolving loan program.

(a) This Section is a continuation and re-enactment of the fire truck revolving loan program enacted as Section 3-27 of the Rural Bond Bank Act by Public Act 93-35, effective June 24, 2003, and repealed by Public Act 93-205, effective January 1, 2004. Under the Rural Bond Bank Act, the program was administered by the Rural Bond Bank and the State Fire Marshal.

(b) The Authority and the State Fire Marshal may shall jointly administer a fire truck revolving loan program. The program may shall provide zero-interest loans for the purchase of fire trucks by a fire department, a fire protection district, or a township fire department. The Authority shall make loans based on need, as determined by the State Fire Marshal.

(c) The loan funds, subject to appropriation, shall be paid out of the Fire Truck Revolving Loan Fund, a special fund in the State Treasury. The Fund shall consist of any moneys transferred or appropriated into the Fund, as well as all repayments of loans made under the program and any balance existing in the Fund on the effective date of this Section. The Fund shall be used for loans to fire departments and fire protection districts to purchase fire trucks and for no other purpose. All interest earned on moneys in the Fund shall be deposited into the Fund.

(d) A loan for the purchase of fire trucks may not exceed $250,000 to any fire department or fire protection district. The repayment period for the loan may not exceed 20 years. The fire department or fire protection district shall repay each year at least 5% of the principal amount borrowed or the remaining balance of the loan, whichever is less. All repayments of loans shall be deposited into the Fire Truck Revolving Loan Fund.

(e) The Authority and the State Fire Marshal may shall adopt rules in accordance with the Illinois Administrative Procedure Act to administer the program.

(f) Notwithstanding the repeal of Section 3-27 of the Rural Bond Bank Act, all otherwise lawful actions taken on or after January 1, 2004 and before the effective date of this Section by any person under the authority originally granted by that Section 3-27, including without limitation the granting, acceptance, and repayment of loans for the purchase of fire trucks, are hereby validated, and the rights and obligations of all parties to any such loan are hereby acknowledged and confirmed.

(Source: P.A. 94-221, eff. 7-14-05.)

(20 ILCS 3501/825-81)

Sec. 825-81. Fire station revolving loan program.

(a) The Authority and the State Fire Marshal may jointly administer a fire station revolving loan program. The program may provide zero-interest loans for the construction, rehabilitation, remodeling, or expansion of a fire station or the acquisition of land for the construction or expansion of a fire station by a fire department, a fire protection district, or a township fire department. Once the program receives funding, the Authority shall make loans based on need, as determined by the State Fire Marshal.

(b) The loan funds, subject to appropriation, may be paid out of the Fire Station Revolving Loan Fund, a special fund in the State treasury. The Fund may consist of any moneys transferred or appropriated into the Fund, as well as all repayments of loans made under the program. Once the program receives funding, the Fund may be used for loans to fire departments and fire protection districts to construct, rehabilitate, remodel, or expand fire stations or acquire land for the construction or expansion of fire stations and for no other purpose. All interest earned on moneys in the Fund shall be deposited into the Fund.

(c) A loan under the program may not exceed $2,000,000 to any fire department or fire protection district. The repayment period for the loan may not exceed 25 years. The fire department or fire protection district shall repay each year at least 4% of the principal amount borrowed or the remaining balance of the loan, whichever is less. All repayments of loans shall be deposited into the Fire Station Revolving Loan Fund.

(d) The Authority and the State Fire Marshal may adopt rules in accordance with the Illinois Administrative Procedure Act to administer the program.

(Source: P.A. 96-135, eff. 8-7-09; 96-1172, eff. 7-22-10.)

(20 ILCS 3501/825-85)

Sec. 825-85. Ambulance revolving loan program.

(a) The Authority and the State Fire Marshal may shall jointly administer an ambulance revolving loan program. The program may shall provide zero-interest loans for the purchase of ambulances by a fire department, a fire protection district, a township fire department, or a non-profit ambulance service. The Authority shall make loans based on need, as determined by the State Fire Marshal.

(b) The loan funds, subject to appropriation, shall be paid out of the Ambulance Revolving Loan Fund, a special fund in the State treasury. The Fund shall consist of any moneys transferred or appropriated into the Fund, as well as all repayments of loans made under the program. The Fund shall be used for loans to fire departments, fire protection districts, and non-profit ambulance services to purchase ambulances and for no other purpose. All interest earned on moneys in the Fund shall be deposited into the Fund.

(c) A loan for the purchase of ambulances may not exceed $100,000 to any fire department, fire protection district, or non-profit ambulance service. The repayment period for the loan may not exceed 10 years. The fire department, fire protection district, or non-profit ambulance service` shall repay each year at least 5% of the principal amount borrowed or the remaining balance of the loan, whichever is less. All repayments of loans shall be deposited into the Ambulance Revolving Loan Fund.

(d) The Authority and the State Fire Marshal may shall adopt rules in accordance with the Illinois Administrative Procedure Act to administer the program.

(Source: P.A. 94-829, eff. 6-5-06.)

(20 ILCS 3501/825-87 new)

Sec. 825-87. Public life safety capital investment finance program.

(a) In addition to the powers set forth in Sections 825-80, 825-81, and 825-85 of this Act and in furtherance of the purposes and programs set forth in those Sections, the Authority may use loans and guarantees as authorized in this Act to maximize the number of participants in the programs and to maximize the efficient use of taxpayer appropriated funds.

(b) Subject to appropriation, loans or guarantees authorized by the programs under Sections 825-80, 825-81, and 825-85 of this Act may finance: (i) the purchase of fire trucks, ambulances, brush trucks, or other depreciable capital equipment or vehicles that will assist a unit of local government, as defined in Section 820-10 of this Act, in furtherance of the unit of local government's essential public life safety purpose as determined by the State Fire Marshal; (ii) the purchase, construction, rehabilitation, remodeling, or expansion of fire stations or other structures that will assist a unit of local government, as defined in Section 820-10 of this Act, in furtherance of the unit of local government's public life safety purpose as determined by the State Fire Marshal; or (iii) the purchase or acquisition of land for the construction or expansion of a fire station or other structure that will assist a unit of local government, as defined in Section 820-10 of this Act, in furtherance of the unit of local government's public life safety purpose as determined by the State Fire Marshal.

(c) The Authority may determine the financial structure, including but not limited to the terms, conditions, collateral, maturity, and interest rate, of loans or guarantees authorized by the programs under Sections 825-80, 825-81, and 825-85 of this Act.

(d) The Authority and the State Fire Marshall may access the funds referenced in Sections 825-80, 825-81, and 825-85 of this Act and may fix, determine, charge, and collect fees, in connection with the programs under Sections 825-80, 825-81, and 825-85 of this Act and in furtherance of the purposes set forth in this Section.

(e) The Authority and the State Fire Marshal may adopt rules in accordance with the Illinois Administrative Procedure Act to administer the programs under this Section.

Section 99. Effective date. This Act takes effect upon becoming law.