093_SB1736ham001











                                     LRB093 03055 MKM 20069 a

 1                    AMENDMENT TO SENATE BILL 1736

 2        AMENDMENT NO.     .  Amend Senate Bill 1736 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  Short  title.  This Act may be cited as the
 5    Western Illinois Economic Development Authority Act.

 6        Section 10.  Findings. The  General  Assembly  determines
 7    and declares the following:
 8        (1)  that  labor surplus areas currently exist in western
 9    Illinois;
10        (2)  that the economic burdens resulting from involuntary
11    unemployment fall, in part, upon the State  in  the  form  of
12    increased need for public assistance and reduced tax revenues
13    and,  in  the event that the unemployed worker and his or her
14    family migrate elsewhere to find work, the  burden  may  also
15    fall  upon  the  municipalities  and  other  taxing districts
16    within the areas of unemployment in the form of  reduced  tax
17    revenues,  thereby  endangering  their  financial  ability to
18    support necessary governmental services for  their  remaining
19    inhabitants;
20        (3)  that the State has a responsibility to help create a
21    favorable  climate for new and improved job opportunities for
22    its citizens by encouraging the development of commercial and
 
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 1    service businesses and industrial  and  manufacturing  plants
 2    within the western region of Illinois;
 3        (4)  that  a  lack of decent housing contributes to urban
 4    blight, crime, anti-social behavior, disease, a  higher  need
 5    for   public   assistance,  reduced  tax  revenues,  and  the
 6    migration of workers and their families away from areas which
 7    fail to offer adequate, decent, and affordable housing;
 8        (5)  that  decent,  affordable  housing  is  a  necessary
 9    ingredient  of  life  affording  each  citizen  basic   human
10    dignity,  a  sense  of  self-worth,  confidence,  and  a firm
11    foundation upon which to build a family and educate children;
12        (6)  that in  order  to  foster  civic  and  neighborhood
13    pride,  citizens  require access to educational institutions,
14    recreation, parks and open spaces, entertainment,  sports,  a
15    reliable  transportation  network,  cultural  facilities, and
16    theaters; and
17        (7)  that the main purpose of  this  Act  is  to  promote
18    industrial, commercial, residential, service, transportation,
19    and  recreational activities and facilities, thereby reducing
20    the evils  attendant  upon  unemployment  and  enhancing  the
21    public health, safety, morals, happiness, and general welfare
22    of the State.

23        Section 15.  Definitions. In this Act:
24        "Authority"   means   the   Western   Illinois   Economic
25    Development Authority.
26        "Governmental  agency" means any federal, State, or local
27    governmental body and any agency or instrumentality  thereof,
28    corporate or otherwise.
29        "Person"  means  any  natural  person, firm, partnership,
30    corporation, both domestic and foreign, company,  association
31    or   joint   stock  association  and  includes  any  trustee,
32    receiver, assignee or personal representative thereof.
33        "Revenue bond" means any bond issued  by  the  Authority,
 
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 1    the  principal  and  interest of which is payable solely from
 2    revenues or income derived from any project  or  activity  of
 3    the Authority.
 4        "Board"  means  the  Board  of  Directors  of the Western
 5    Illinois Economic Development Authority.
 6        "Governor" means the Governor of the State of Illinois.
 7        "City" means any city,  village,  incorporated  town,  or
 8    township within the geographical territory of the Authority.
 9        "Industrial project" means the following:
10        (1)  a  capital  project, including one or more buildings
11    and other structures, improvements, machinery  and  equipment
12    whether  or  not  on  the  same site or sites now existing or
13    hereafter acquired, suitable for use  by  any  manufacturing,
14    industrial, research, transportation or commercial enterprise
15    including  but  not  limited  to  use  as  a  factory,  mill,
16    processing    plant,   assembly   plant,   packaging   plant,
17    fabricating plant, ethanol plant, office building, industrial
18    distribution center, warehouse, repair, overhaul  or  service
19    facility, freight terminal, research facility, test facility,
20    railroad  facility,  solid waste and wastewater treatment and
21    disposal  sites  and  other  pollution  control   facilities,
22    resource or waste reduction, recovery, treatment and disposal
23    facilities,  and  including  also the sites thereof and other
24    rights in land therefore whether improved or unimproved, site
25    preparation  and  landscaping  and  all   appurtenances   and
26    facilities  incidental  thereto  such  as  utilities,  access
27    roads,   railroad   sidings,   truck   docking   and  similar
28    facilities, parking facilities, dockage,  wharfage,  railroad
29    roadbed,  track,  trestle,  depot,  terminal,  switching  and
30    signaling   equipment   or   related   equipment   and  other
31    improvements necessary or convenient thereto; or
32        (2)  any  land,   buildings,   machinery   or   equipment
33    comprising  an  addition  to or renovation, rehabilitation or
34    improvement of any existing capital project.
 
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 1        "Commercial project" means any  project,  including,  but
 2    not  limited  to, one or more buildings and other structures,
 3    improvements, machinery, and equipment, whether or not on the
 4    same site  or  sites  now  existing  or  hereafter  acquired,
 5    suitable   for  use  by  any  retail  or  wholesale  concern,
 6    distributorship, or agency.
 7        "Project"  means  an  industrial,  housing,  residential,
 8    commercial, or service project, or any  combination  thereof,
 9    provided  that  all  uses  fall  within one of the categories
10    described above. Any project automatically includes all  site
11    improvements   and   new  construction  involving  sidewalks,
12    sewers, solid waste and  wastewater  treatment  and  disposal
13    sites  and  other  pollution  control facilities, resource or
14    waste reduction, recovery, treatment and disposal facilities,
15    parks, open spaces, wildlife sanctuaries, streets,  highways,
16    and runways.
17        "Lease  agreement"  means an agreement in which a project
18    acquired by the Authority by  purchase,  gift,  or  lease  is
19    leased  to  any person or corporation that will use, or cause
20    the project to be used, as a project,  upon  terms  providing
21    for  lease  rental  payments at least sufficient to pay, when
22    due, all principal of and interest and premium,  if  any,  on
23    any  bonds,  notes, or other evidences of indebtedness of the
24    Authority, issued with respect to the project, providing  for
25    the  maintenance,  insurance, and operation of the project on
26    terms  satisfactory  to  the  Authority  and  providing   for
27    disposition  of  the  project  upon  termination of the lease
28    term,  including  purchase  options  or  abandonment  of  the
29    premises, with other terms as may be deemed desirable by  the
30    Authority.
31        "Loan   agreement"  means  any  agreement  in  which  the
32    Authority agrees to loan the proceeds of its bonds, notes, or
33    other evidences of indebtedness, issued  with  respect  to  a
34    project, to any person or corporation which will use or cause
 
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 1    the project to be used as a project, upon terms providing for
 2    loan  repayment installments at least sufficient to pay, when
 3    due, all principal of and interest and premium,  if  any,  on
 4    any  bonds,  notes, or other evidences of indebtedness of the
 5    Authority issued with respect to the project,  providing  for
 6    maintenance, insurance, and operation of the project on terms
 7    satisfactory  to  the Authority and providing for other terms
 8    deemed advisable by the Authority.
 9        "Financial aid" means the expenditure of Authority  funds
10    or  funds  provided  by  the  Authority  for the development,
11    construction,  acquisition  or  improvement  of  a   project,
12    through  the  issuance  of  revenue  bonds,  notes,  or other
13    evidences of indebtedness.
14        "Costs  incurred  in  connection  with  the  development,
15    construction, acquisition or improvement of a project"  means
16    the following:
17        (1)  the  cost  of purchase and construction of all lands
18    and improvements in connection therewith  and  equipment  and
19    other  property,  rights,  easements, and franchises acquired
20    which are deemed necessary for the construction;
21        (2)  financing charges;
22        (3)  interest costs with respect  to  bonds,  notes,  and
23    other evidences of indebtedness of the Authority prior to and
24    during construction and for a period of 6 months thereafter;
25        (4)  engineering and legal expenses; and
26        (5)  the  costs  of  plans,  specifications, surveys, and
27    estimates of costs and other expenses necessary  or  incident
28    to  determining  the  feasibility  or  practicability  of any
29    project,  together  with  such  other  expenses  as  may   be
30    necessary   or   incident   to   the   financing,   insuring,
31    acquisition,  and  construction of a specific project and the
32    placing of the same in operation.

33        Section 20.  Creation.
 
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 1        (a)  There  is  created  a  political  subdivision,  body
 2    politic, and municipal corporation named the Western Illinois
 3    Economic Development Authority. The territorial  jurisdiction
 4    of   the   Authority  is  that  geographic  area  within  the
 5    boundaries of  the  following  counties:  Warren,  Henderson,
 6    Hancock,  McDonough,  Fulton,  Mason,  Cass, Schuyler, Brown,
 7    Adams, Scott, Morgan, and Pike and any navigable  waters  and
 8    air space located therein.
 9        (b)  The  governing  and  administrative  powers  of  the
10    Authority  shall be vested in a body consisting of 17 members
11    as follows:
12             (1)  Ex officio members. The  Director  of  Commerce
13        and   Economic   Opportunity,   or  a  designee  of  that
14        Department,  and  the  Director  of  Central   Management
15        Services,  or  a designee of that Department, shall serve
16        as ex officio members.
17             (2)  Public  members.  Fifteen  members   shall   be
18        appointed  by the Governor with the advice and consent of
19        the  Senate.   Each   county   within   the   territorial
20        jurisdiction  of the Authority shall be represented by at
21        least one member.  All public members shall reside within
22        the territorial jurisdiction of the Authority. The public
23        members  shall  be  persons  of  recognized  ability  and
24        experience  in  one  or  more  of  the  following  areas:
25        economic  development,   finance,   banking,   industrial
26        development,   state   or  local  government,  commercial
27        agriculture,  small  business  management,  real   estate
28        development,   community  development,  venture  finance,
29        organized labor, or civic or community organization.
30        (c)  Eight members shall constitute a quorum.
31        (d)  The chairman  of  the  Authority  shall  be  elected
32    annually by the Board.
33        (e)  The  terms  of  all initial members of the Authority
34    shall begin 30 days after the effective date of this Act.  Of
 
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 1    the   15   original  public  members  appointed  pursuant  to
 2    subsection (b), 3 shall  serve  until  the  third  Monday  in
 3    January,  2005;  3  shall  serve  until  the  third Monday in
 4    January, 2006; 3  shall  serve  until  the  third  Monday  in
 5    January,  2007;  3  shall  serve  until  the  third Monday in
 6    January, 2008; and 3 shall serve until the  third  Monday  in
 7    January,  2009.  All  successors  to  these  original  public
 8    members  shall  be  appointed by the Governor with the advice
 9    and consent of the Senate, pursuant to  subsection  (b),  and
10    shall  hold office for a term of 6 years commencing the third
11    Monday in January of the year in which their term  commences,
12    except  in  the  case  of  an  appointment to fill a vacancy.
13    Vacancies occurring among the public members shall be  filled
14    for  the  remainder  of  the  term.  In  case of vacancy in a
15    Governor-appointed membership  when  the  Senate  is  not  in
16    session,  the Governor may make a temporary appointment until
17    the next meeting  of  the  Senate  when  a  person  shall  be
18    nominated  to  fill  the office and, upon confirmation by the
19    Senate, he or she shall hold office during the  remainder  of
20    the  term  and  until a successor is appointed and qualified.
21    Members of the Authority are not entitled to compensation for
22    their services as members but are entitled  to  reimbursement
23    for  all  necessary  expenses incurred in connection with the
24    performance of their duties as members.
25        (f)  The Governor may remove any  public  member  of  the
26    Authority  in  case  of  incompetence,  neglect  of  duty, or
27    malfeasance in office.
28        (g)  The Board shall appoint an  Executive  Director  who
29    shall  have  a  background  in finance, including familiarity
30    with the legal and procedural requirements of issuing  bonds,
31    real  estate, or economic development and administration. The
32    Executive Director shall hold office at the discretion of the
33    Board.  The   Executive   Director   shall   be   the   chief
34    administrative  and  operational  officer  of  the Authority,
 
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 1    shall direct and supervise  its  administrative  affairs  and
 2    general  management,  perform  such  other  duties  as may be
 3    prescribed from time to time  by  the  members,  and  receive
 4    compensation  fixed  by  the  Authority.  The  Department  of
 5    Commerce  and Community Affairs shall pay the compensation of
 6    the Executive Director from appropriations received for  that
 7    purpose.  The Executive Director shall attend all meetings of
 8    the Authority. However, no action of the Authority  shall  be
 9    invalid  on  account of the absence of the Executive Director
10    from a meeting. The Authority may engage the services of  the
11    Illinois Finance Authority, attorneys, appraisers, engineers,
12    accountants,  credit  analysts,  and other consultants if the
13    Western Illinois  Economic  Development  Authority  deems  it
14    advisable.

15        Section  25.  Duty.  All  official  acts of the Authority
16    shall require the approval of at least 8 members. It shall be
17    the duty of the Authority to promote development  within  the
18    geographic confines of Warren, Henderson, Hancock, McDonough,
19    Fulton,  Mason,  Cass, Schuyler, Brown, Adams, Scott, Morgan,
20    and  Pike  counties.  The  Authority  shall  use  the  powers
21    conferred upon it to assist in the development, construction,
22    and  acquisition  of  industrial,  commercial,  housing,   or
23    residential projects within those counties.

24        Section 30.  Powers.
25        (a)  The  Authority  possesses  all  the powers of a body
26    corporate necessary and convenient to accomplish the purposes
27    of this Act, including, without any intended limitation  upon
28    the general powers hereby conferred, the following powers:
29             (1)  to enter into loans, contracts, agreements, and
30        mortgages  in  any  matter  connected  with  any  of  its
31        corporate purposes and to invest its funds;
32             (2)  to sue and be sued;
 
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 1             (3)  to  utilize  services  of  the Illinois Finance
 2        Authority necessary to carry out its purposes;
 3             (4)  to have and use a common seal and to alter  the
 4        seal at its discretion;
 5             (5)  to  adopt  all needful ordinances, resolutions,
 6        bylaws, rules, and regulations for  the  conduct  of  its
 7        business  and  affairs  and for the management and use of
 8        the  projects  developed,  constructed,   acquired,   and
 9        improved in furtherance of its purposes;
10             (6)  to designate the fiscal year for the Authority;
11             (7)  to accept and expend appropriations;
12             (8)  to  acquire,  own,  lease,  sell,  or otherwise
13        dispose  of  interests  in  and  to  real  property   and
14        improvements  situated  on  that  real  property  and  in
15        personal  property  necessary  to fulfill the purposes of
16        the Authority;
17             (9)  to engage in any activity or operation which is
18        incidental to and in furtherance of  efficient  operation
19        to accomplish the Authority's primary purpose;
20             (10)  to  acquire,  own,  construct, lease, operate,
21        and maintain bridges, terminals, terminal facilities, and
22        port facilities and to fix and collect just,  reasonable,
23        and   nondiscriminatory  charges  for  the  use  of  such
24        facilities. These charges shall be  used  to  defray  the
25        reasonable  expenses  of  the  Authority  and  to pay the
26        principal and interest of any revenue bonds issued by the
27        Authority;
28             (11)  subject to any applicable condition imposed by
29        this Act, to locate,  establish  and  maintain  a  public
30        airport,  public  airports  and public airport facilities
31        within its corporate limits or within or upon any body of
32        water adjacent thereto and to construct, develop, expand,
33        extend and improve any such airport or airport  facility;
34        and
 
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 1             (12)  to have and exercise all powers and be subject
 2        to  all duties usually incident to boards of directors of
 3        corporations.
 4        (b)  The Authority shall not issue any bonds relating  to
 5    the  financing  of  a project located within the planning and
 6    subdivision  control  jurisdiction  of  any  municipality  or
 7    county unless: (i) notice, including  a  description  of  the
 8    proposed  project  and  the  financing  for  that project, is
 9    submitted to the corporate authorities  of  the  municipality
10    or,  in  the  case of a proposed project in an unincorporated
11    area, to the county board and (ii) the corporate  authorities
12    of  the  municipality  do  not, or the county board does not,
13    adopt a resolution disapproving the project  within  45  days
14    after receipt of the notice.
15        (c)  If  any  of  the  powers  set  forth in this Act are
16    exercised   within   the   jurisdictional   limits   of   any
17    municipality, all ordinances of the  municipality  remain  in
18    full force and effect and are controlling.

19        Section  35.  Tax  avoidance.  Notwithstanding  any other
20    provision of law, the Authority  shall  not  enter  into  any
21    agreement  providing  for  the purchase and lease of tangible
22    personal property which results in the avoidance of  taxation
23    under the Retailers' Occupation Tax Act, the Use Tax Act, the
24    Service  Use  Tax  Act,  or  the  Service Occupation Tax Act,
25    without the prior written consent of the Governor.

26        Section 40.  Bonds.
27        (a)  The Authority, with  the  written  approval  of  the
28    Governor,  shall  have  the  continuing power to issue bonds,
29    notes, or other evidences of  indebtedness  in  an  aggregate
30    amount not to exceed $250,000,000 for the following purposes:
31    (i) development, construction, acquisition, or improvement of
32    projects,  including  those  established by business entities
 
                            -11-     LRB093 03055 MKM 20069 a
 1    locating  or  expanding  property  within   the   territorial
 2    jurisdiction  of  the  Authority;  (ii) entering into venture
 3    capital agreements  with  businesses  locating  or  expanding
 4    within  the  territorial jurisdiction of the Authority; (iii)
 5    acquisition and improvement of  any  property  necessary  and
 6    useful  in connection therewith; and (iv) for the purposes of
 7    the Employee Ownership Assistance Act.  For  the  purpose  of
 8    evidencing  the  obligations  of  the  Authority to repay any
 9    money borrowed, the Authority may,  pursuant  to  resolution,
10    from  time to time, issue and dispose of its interest-bearing
11    revenue bonds, notes, or other evidences of indebtedness  and
12    may  also  from time to time issue and dispose of such bonds,
13    notes, or other  evidences  of  indebtedness  to  refund,  at
14    maturity,  at  a redemption date or in advance of either, any
15    bonds, notes, or other evidences of indebtedness pursuant  to
16    redemption  provisions  or  at  any time before maturity. All
17    such bonds, notes, or other evidences of  indebtedness  shall
18    be  payable solely and only from the revenues or income to be
19    derived from loans made with respect to  projects,  from  the
20    leasing  or  sale  of  the  projects, or from any other funds
21    available to the Authority  for  such  purposes.  The  bonds,
22    notes,  or other evidences of indebtedness may bear such date
23    or dates, may mature at such time or times not  exceeding  40
24    years  from their respective dates, may bear interest at such
25    rate or rates not exceeding the maximum rate permitted by the
26    Bond Authorization Act, may be in such form, may  carry  such
27    registration  privileges, may be executed in such manner, may
28    be payable at such place or places, may be  made  subject  to
29    redemption  in  such  manner  and  upon  such  terms, with or
30    without premium, as is stated on the  face  thereof,  may  be
31    authenticated  in  such manner and may contain such terms and
32    covenants as may be provided by an applicable resolution.
33        (b)  The holder or holders of any bonds, notes, or  other
34    evidences  of  indebtedness issued by the Authority may bring
 
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 1    suits  at  law  or  proceedings  in  equity  to  compel   the
 2    performance and observance by any corporation or person or by
 3    the  Authority  or  any  of  its  agents  or employees of any
 4    contract or covenant made with  the  holders  of  the  bonds,
 5    notes,  or  other  evidences  of indebtedness, to compel such
 6    corporation, person, the Authority, and any of its agents  or
 7    employees  to perform any duties required to be performed for
 8    the benefit of the holders of  the  bonds,  notes,  or  other
 9    evidences  of indebtedness by the provision of the resolution
10    authorizing their issuance and  to  enjoin  the  corporation,
11    person,  the  Authority,  and  any of its agents or employees
12    from taking any action  in  conflict  with  any  contract  or
13    covenant.
14        (c)  If  the  Authority  fails to pay the principal of or
15    interest on any of the bonds or premium, if any, as the  bond
16    becomes  due,  a  civil  action  to  compel  payment  may  be
17    instituted  in the appropriate circuit court by the holder or
18    holders of the bonds on which the default of  payment  exists
19    or  by  an indenture trustee acting on behalf of the holders.
20    Delivery of a summons and a copy  of  the  complaint  to  the
21    chairman  of the Board shall constitute sufficient service to
22    give the circuit court jurisdiction over the  subject  matter
23    of  the  suit  and  jurisdiction  over  the Authority and its
24    officers named as defendants for the  purpose  of  compelling
25    such  payment.  Any  case,  controversy,  or  cause of action
26    concerning the validity of this Act relates to the revenue of
27    the State of Illinois.
28        (d)  Notwithstanding the form  and  tenor  of  any  bond,
29    note, or other evidence of indebtedness and in the absence of
30    any  express  recital  on its face that it is non-negotiable,
31    all such bonds, notes, and other  evidences  of  indebtedness
32    shall  be negotiable instruments. Pending the preparation and
33    execution  of  any  bonds,  notes,  or  other  evidences   of
34    indebtedness,   temporary   bonds,  notes,  or  evidences  of
 
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 1    indebtedness may be issued as provided by ordinance.
 2        (e)  To secure the payment of any or all of  such  bonds,
 3    notes, or other evidences of indebtedness, the revenues to be
 4    received  by  the  Authority  from  a lease agreement or loan
 5    agreement shall be pledged, and, for the purpose  of  setting
 6    forth  the  covenants  and  undertakings  of the Authority in
 7    connection with the issuance of the bonds,  notes,  or  other
 8    evidences  of indebtedness and the issuance of any additional
 9    bonds, notes or other evidences of indebtedness payable  from
10    such  revenues,  income,  or  other  funds to be derived from
11    projects, the Authority may execute and deliver a mortgage or
12    trust agreement. A remedy for any breach or  default  of  the
13    terms of any mortgage or trust agreement by the Authority may
14    be by mandamus proceeding in the appropriate circuit court to
15    compel  performance  and  compliance  under  the terms of the
16    mortgage or trust agreement,  but  the  trust  agreement  may
17    prescribe  by  whom  or  on  whose  behalf  the action may be
18    instituted.
19        (f)  Bonds or notes shall be secured as provided  in  the
20    authorizing  ordinance which may include, notwithstanding any
21    other provision  of  this  Act,  in  addition  to  any  other
22    security,  a  specific  pledge, assignment of and lien on, or
23    security interest in any or all  revenues  or  money  of  the
24    Authority,  from  whatever source, which may, by law, be used
25    for  debt  service  purposes  and  a  specific   pledge,   or
26    assignment  of and lien on, or security interest in any funds
27    or accounts established or provided for by ordinance  of  the
28    Authority authorizing the issuance of the bonds or notes.
29        (g)  In  the  event  that  the  Authority determines that
30    moneys of the  Authority  will  not  be  sufficient  for  the
31    payment  of the principal of and interest on its bonds during
32    the  next  State  fiscal  year,  the  chairman,  as  soon  as
33    practicable,  shall  certify  to  the  Governor  the   amount
34    required  by  the Authority to enable it to pay the principal
 
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 1    of and interest on the bonds. The Governor shall  submit  the
 2    certified   amount   to  the  General  Assembly  as  soon  as
 3    practicable, but no later than the end of the  current  State
 4    fiscal  year.  This  Section  shall not apply to any bonds or
 5    notes to which the Authority determines,  in  the  resolution
 6    authorizing  the  issuance  of  the bonds or notes, that this
 7    Section shall not apply. Whenever the  Authority  makes  this
 8    determination,  it shall be plainly stated on the face of the
 9    bonds or notes and the determination shall also  be  reported
10    to the Governor.  In the event of a withdrawal of moneys from
11    a  reserve  fund  established  with  respect  to any issue or
12    issues of bonds of the Authority to pay principal or interest
13    on those bonds, the chairman of the  Authority,  as  soon  as
14    practicable,   shall  certify  to  the  Governor  the  amount
15    required to restore the reserve fund to the level required in
16    the  resolution  or  indenture  securing  those  bonds.   The
17    Governor  shall  submit  the  certified amount to the General
18    Assembly as soon as practicable, but no later than the end of
19    the current State fiscal year.
20        (h)  The State of Illinois pledges to and agrees with the
21    holders of the  bonds  and  notes  of  the  Authority  issued
22    pursuant  to  this  Section  that the State will not limit or
23    alter the rights and powers vested in the Authority  by  this
24    Act  so  as  to  impair the terms of any contract made by the
25    Authority with the holders of bonds or notes or  in  any  way
26    impair  the  rights  and  remedies of those holders until the
27    bonds  and  notes,  together  with  interest  thereon,   with
28    interest  on  any  unpaid  installments  of interest, and all
29    costs  and  expenses  in  connection  with  any   action   or
30    proceedings by or on behalf of the holders, are fully met and
31    discharged. In addition, the State pledges to and agrees with
32    the  holders  of  the bonds and notes of the Authority issued
33    pursuant to this Section that the State  will  not  limit  or
34    alter  the  basis  on which State funds are to be paid to the
 
                            -15-     LRB093 03055 MKM 20069 a
 1    Authority as provided in this Act, or the use of such  funds,
 2    so as to impair the terms of any such contract. The Authority
 3    is  authorized to include these pledges and agreements of the
 4    State in any contract with the  holders  of  bonds  or  notes
 5    issued pursuant to this Section.
 6        (i)  Not  less  than  30  days prior to the commitment to
 7    issue bonds, notes, or other evidences  of  indebtedness  for
 8    the   purpose  of  developing,  constructing,  acquiring,  or
 9    improving housing or residential projects, as defined in this
10    Act, the Authority shall  provide  notice  to  the  Executive
11    Director  of  the  Illinois  Housing  Development  Authority.
12    Within  30  days  after  the notice is provided, the Illinois
13    Housing  Development  Authority  shall,  in  writing,  either
14    express interest in  financing  the  project  or  notify  the
15    Authority  that  it  is not interested in providing financing
16    and that the  Authority  may  finance  the  project  or  seek
17    alternative financing.

18        Section  45.  Bonds  and  notes; exemption from taxation.
19    The creation of the Authority is  in  all  respects  for  the
20    benefit  of the people of Illinois and for the improvement of
21    their health, safety, welfare, comfort, and security, and its
22    purposes are public purposes. In consideration  thereof,  the
23    notes  and bonds of the Authority issued pursuant to this Act
24    and the income from these notes and bonds may  be  free  from
25    all  taxation  by  the  State  or its political subdivisions,
26    exempt for  estate,  transfer,  and  inheritance  taxes.  The
27    exemption  from  taxation  provided by the preceding sentence
28    shall apply to the income  on  any  notes  or  bonds  of  the
29    Authority   only  if  the  Authority  in  its  sole  judgment
30    determines that the exemption enhances the  marketability  of
31    the  bonds  or notes or reduces the interest rates that would
32    otherwise be borne by the bonds or  notes.  For  purposes  of
33    Section  250 of the Illinois Income Tax Act, the exemption of
 
                            -16-     LRB093 03055 MKM 20069 a
 1    the Authority shall terminate after all  of  the  bonds  have
 2    been  paid. The amount of such income that shall be added and
 3    then subtracted on  the  Illinois  income  tax  return  of  a
 4    taxpayer,  subject  to Section 203 of the Illinois Income Tax
 5    Act, from federal adjusted gross income  or  federal  taxable
 6    income  in  computing  Illinois  base  income  shall  be  the
 7    interest net of any bond premium amortization.

 8        Section 50.  Acquisition.
 9        (a)  The  Authority  may,  but need not, acquire title to
10    any project with respect to which it exercises its authority.
11        (b)  The  Authority  shall  have  power  to  acquire   by
12    purchase,  lease,  gift,  or otherwise any property or rights
13    therein from any person or persons, the  State  of  Illinois,
14    any  municipal corporation, any local unit of government, the
15    government  of  the  United  States   and   any   agency   or
16    instrumentality  of  the  United States, any body politic, or
17    any county useful for its purposes, whether improved for  the
18    purposes  of  any  prospective  project  or  unimproved.  The
19    Authority  may  also  accept  any  donation  of funds for its
20    purposes from any of these sources.
21        (c)  The  Authority  shall   have   power   to   develop,
22    construct,  and  improve,  either  under its own direction or
23    through collaboration with  any  approved  applicant,  or  to
24    acquire,  through  purchase  or otherwise, any project, using
25    for this purpose  the  proceeds  derived  from  its  sale  of
26    revenue  bonds,  notes, or other evidences of indebtedness or
27    governmental loans or grants and shall have the power to hold
28    title to those projects in the name of the Authority.
29        (d)  The Authority shall have the  power  to  enter  into
30    intergovernmental  agreements with the State of Illinois, the
31    counties of Warren, Henderson,  Hancock,  McDonough,  Fulton,
32    Mason,  Cass, Schuyler, Brown, Adams, Scott, Morgan, or Pike,
33    the Illinois  Development  Finance  Authority,  the  Illinois
 
                            -17-     LRB093 03055 MKM 20069 a
 1    Housing   Development   Authority,   the  Illinois  Education
 2    Facilities   Authority,   the   Illinois   Farm   Development
 3    Authority, the Rural Bond Bank, the United States  government
 4    and  any  agency or instrumentality of the United States, any
 5    unit of local government located within the territory of  the
 6    Authority,  or  any  other  unit  of government to the extent
 7    allowed  by  Article  VII,  Section  10   of   the   Illinois
 8    Constitution and the Intergovernmental Cooperation Act.
 9        (e)  The   Authority   shall  have  the  power  to  share
10    employees with other units of government, including  agencies
11    of  the United States, agencies of the State of Illinois, and
12    agencies or personnel of any unit of local government.
13        (f)  The Authority  shall  have  the  power  to  exercise
14    powers  and  issue  bonds  as  if  it  were a municipality so
15    authorized in Divisions 12.1, 74, 74.1,  74.3,  and  74.5  of
16    Article 11 of the Illinois Municipal Code.

17        Section  55.  Enterprise  zones.  The  Authority  may  by
18    ordinance designate a portion of the territorial jurisdiction
19    of  the  Authority  for  certification  as an Enterprise Zone
20    under the Illinois Enterprise Zone Act  in  addition  to  any
21    other  enterprise  zones which may be created under that Act,
22    which area shall have all the privileges  and  rights  of  an
23    Enterprise Zone pursuant to the Illinois Enterprise Zone Act,
24    but  which  shall not be counted in determining the number of
25    Enterprise Zones to be created in any year pursuant  to  that
26    Act.

27        Section  60.  Designation  of  depository.  The Authority
28    shall biennially designate a national or State bank or  banks
29    as  depositories  of  its  money.  Such depositories shall be
30    designated only within the  State  and  upon  condition  that
31    bonds  approved as to form and surety by the Authority and at
32    least equal in amount to the maximum sum expected  to  be  on
 
                            -18-     LRB093 03055 MKM 20069 a
 1    deposit  at  any  one  time  shall  be  first  given  by such
 2    depositories to the Authority, such bonds to  be  conditioned
 3    for  the  safe keeping and prompt repayment of such deposits.
 4    When any of the funds of the Authority shall be deposited  by
 5    the  treasurer  in any such depository, the treasurer and the
 6    sureties on his official  bond  shall,  to  such  extent,  be
 7    exempt  from  liability  for  the  loss of any such deposited
 8    funds by reason of the failure, bankruptcy, or any other  act
 9    or  default  of  such depository; provided that the Authority
10    may accept assignments of collateral by any depository of its
11    funds  to  secure  such  deposits  to  the  same  extent  and
12    conditioned in the same manner as assignments  of  collateral
13    are  permitted  by law to secure deposits of the funds of any
14    city.

15        Section 65.  Taxation  prohibited.  The  Authority  shall
16    have  no  right  or  authority  to  levy  any  tax or special
17    assessment, to pledge the credit of the State  or  any  other
18    subdivision or municipal corporation thereof, or to incur any
19    obligation  enforceable  upon  any property, either within or
20    without the territory of the Authority.

21        Section 70.  Fees. The Authority  may  collect  fees  and
22    charges  in  connection  with  its  loans,  commitments,  and
23    servicing   and  may  provide  technical  assistance  in  the
24    development of the region.

25        Section 75.  Reports. The Authority shall annually submit
26    a  report  of  its  finances  to  the  Auditor  General.  The
27    Authority shall annually submit a report of its activities to
28    the Governor and to the General Assembly.

29        Section 999.  Effective date. This Act takes effect  upon
30    becoming law.".