Full Text of SB3474 96th General Assembly
SB3474sam001 96TH GENERAL ASSEMBLY
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Sen. A. J. Wilhelmi
Filed: 3/15/2010
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| AMENDMENT TO SENATE BILL 3474
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| AMENDMENT NO. ______. Amend Senate Bill 3474 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Finance Authority Act is amended | 5 |
| by adding Sections 825-105 and 825-110 as follows: | 6 |
| (20 ILCS 3501/825-105 new) | 7 |
| Sec. 825-105. Implementation of ARRA provisions regarding | 8 |
| recovery zone bonds. | 9 |
| (a) Definitions. | 10 |
| (i) "Allocation amount" means the $666,972,000 amount of | 11 |
| recovery zone economic development bonds and $1,000,457,000 | 12 |
| amount of recovery zone facility bonds authorized under ARRA | 13 |
| for the financing of qualifying projects located within the | 14 |
| State and the sub-allocation of those amounts among each large | 15 |
| local municipality. |
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| (ii) "ARRA" means, collectively, the American Recovery and | 2 |
| Reinvestment Act of 2009, including, without limitation, | 3 |
| Sections 1400U-1, 1400U-2, and 1400U-3 of the Code; the | 4 |
| guidance provided by the Internal Revenue Service applicable to | 5 |
| recovery zone bonds; and any legislation subsequently adopted | 6 |
| by the United States Congress to extend or expand the economic | 7 |
| development bond financing incentives authorized by ARRA. | 8 |
| (iii) "ARRA implementing regulations" means the | 9 |
| regulations promulgated by the Authority as further described | 10 |
| in subdivision (c)(iv) of this Section to implement the | 11 |
| provisions of this Section. | 12 |
| (iv) "Code" means the Internal Revenue Code of 1986, as | 13 |
| amended. | 14 |
| (v) "Excluded municipality" means any city within the State | 15 |
| with a population in excess of 500,000 and any county within | 16 |
| the State with a population in excess of 1,000,000. | 17 |
| (vi) "Home rule unit" means a county or municipality that | 18 |
| is a home rule unit as provided in Section 6 of Article VII of | 19 |
| the Illinois Constitution of 1970. | 20 |
| (vii) "Large local municipality" means either a | 21 |
| municipality within the State if that municipality has a | 22 |
| population of 100,000 or more or any county in the State. | 23 |
| (viii) "Recovery zone" means any area designated pursuant | 24 |
| to Section 1400U-1 of the Code. | 25 |
| (ix) "Recovery zone bond" means any recovery zone economic | 26 |
| development bond or recovery zone facility bond issued pursuant |
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| to Sections 1400U-2 and 1400U-3, respectively, of the Code. | 2 |
| (x) "Recovery zone bond allocation" means an allocation of | 3 |
| authority to issue recovery zone bonds granted pursuant to | 4 |
| Section 1400U-1 of the Code. | 5 |
| (xi) "Sub-allocation" means the portion of the allocation | 6 |
| amount allocated to each large local municipality. | 7 |
| (xii) "Unused recovery zone bond allocation" means the | 8 |
| amount of the recovery zone bond allocation that is recaptured | 9 |
| and re-allocated by the Authority pursuant to this Section. | 10 |
| (xiii) "Waived recovery zone bond allocation" means the | 11 |
| amount of the recovery zone bond allocation voluntarily waived | 12 |
| by a large local municipality pursuant to the provisions of the | 13 |
| ARRA implementing regulations. | 14 |
| (b) Findings. | 15 |
| It is found and declared that: | 16 |
| (i) it is in the public interest and for the benefit of the | 17 |
| State to maximize the use of economic development incentives | 18 |
| authorized by ARRA; | 19 |
| (ii) those incentives include the maximum use of the | 20 |
| allocation amount for the issuance of recovery zone bonds to | 21 |
| promote job creation and economic development in any area that | 22 |
| has been designated as a recovery zone by a large local | 23 |
| municipality under the applicable provisions of ARRA; and | 24 |
| (iii) those incentives also include the issuance by the | 25 |
| Authority of recovery zone bonds for the purposes of financing |
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| qualifying projects with proceeds of recovery zone bonds. | 2 |
| (c) Powers of Authority. | 3 |
| (i) In order to carry out the provisions of ARRA and | 4 |
| further the purposes of this Section, the Authority has: | 5 |
| (A) the power to re-allocate to qualifying projects all | 6 |
| or a portion of waived recovery zone bond allocation; | 7 |
| (B) the power to recapture all or a portion of unused | 8 |
| recovery zone bond allocation from any large local | 9 |
| municipality (other than an excluded municipality) that | 10 |
| has not allocated or does not reasonably expect to allocate | 11 |
| that amount to the issuance of one or more recovery zone | 12 |
| bonds by the dates set forth for that issuance in | 13 |
| subsection (d) of this Section; | 14 |
| (C) the power to re-allocate all or a portion of that | 15 |
| unused recovery zone bond allocation to any large local | 16 |
| municipality that has submitted a request for a portion of | 17 |
| the allocation amount for the purpose of financing one or | 18 |
| more projects that will qualify for financing with proceeds | 19 |
| of recovery zone bonds; | 20 |
| (D) the power to designate areas within the State as | 21 |
| recovery zones or all of the State as a recovery zone; and | 22 |
| (E) the power to issue recovery zone bonds for any | 23 |
| project authorized to be financed with proceeds thereof | 24 |
| under the applicable provisions of ARRA. | 25 |
| (ii) In addition to the powers set forth in item (i), the |
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| Authority has the power to be the sole issuer of any recovery | 2 |
| zone bonds for any project for which the Authority has made a | 3 |
| re-allocation of unused recovery zone bond allocation or waived | 4 |
| recovery zone bond allocation. | 5 |
| (iii) In addition to the powers set forth in items (i) and | 6 |
| (ii), the Authority has any powers otherwise enjoyed by the | 7 |
| Authority in connection with the issuance of its bonds if those | 8 |
| powers are not in conflict with any provisions with respect to | 9 |
| recovery zone bonds set forth in ARRA. | 10 |
| (iv) The Authority has the power to adopt regulations | 11 |
| providing for the implementation of any of the provisions | 12 |
| contained in this Section, including the recapture and | 13 |
| re-allocation of all or any portion of the allocation amount | 14 |
| and the issuance of recovery zone bonds; except that those | 15 |
| regulations shall not (1) apply to or affect any designation of | 16 |
| a recovery zone by a municipality or county or (2) provide for | 17 |
| the recapture or re-allocation of an excluded municipality's | 18 |
| sub-allocation without an excluded municipality's consent. | 19 |
| Regulations adopted by the Authority for determining | 20 |
| re-allocation of all or any portion of the allocation amount | 21 |
| may include, but are not limited to, (1) the ability of the | 22 |
| municipality or county to issue recovery zone bonds on or | 23 |
| before December 31, 2010, (2) the amount of jobs that will be | 24 |
| retained or created, or both, by the qualifying project to be | 25 |
| financed by recovery zone bonds, and (3) the geographical | 26 |
| proximity of the qualifying project to be financed by recovery |
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| zone bonds to a county or municipality that had its allocation | 2 |
| amount re-allocated by the Authority. | 3 |
| (d) Established dates for notice, recapture, waiver, and | 4 |
| re-allocation. | 5 |
| (i) In order to best effectuate the effective | 6 |
| implementation of the recovery zone bond provisions of ARRA, | 7 |
| the following dates are deemed to apply: | 8 |
| (A) Any large local municipality (other than an | 9 |
| excluded municipality) that plans to use its | 10 |
| sub-allocation must notify the Authority no later than the | 11 |
| earlier of May 1, 2010 or 30 days after the effective date | 12 |
| of this Section as to the portion of the sub-allocation | 13 |
| that large local municipality has allocated, or expects to | 14 |
| allocate, to a qualifying project. | 15 |
| (B) Any large local municipality (other than an | 16 |
| excluded municipality) that does not notify the Authority | 17 |
| as required under item (A) is deemed to have forfeited the | 18 |
| sub-allocation and the amount of that large local | 19 |
| municipality's sub-allocation shall be deemed "recaptured" | 20 |
| by the Authority on that date. | 21 |
| (C) On or after the earlier of May 2, 2010 or 31 days | 22 |
| after the effective date of this Section, the Authority may | 23 |
| re-allocate any of the unused recovery zone bond allocation | 24 |
| to one or more projects that, in the discretion of the | 25 |
| Authority, qualify for financing with proceeds of recovery |
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| zone bonds. | 2 |
| (D) A large local municipality may voluntarily waive | 3 |
| all or a portion of its sub-allocation at any time by | 4 |
| notifying the Authority of its intention to do so. | 5 |
| (E) An excluded municipality must notify the Authority | 6 |
| by July 1, 2010 of its plans to use its sub-allocation. | 7 |
| (F) Any portion of a large local municipality's | 8 |
| sub-allocation (except for an excluded municipality's | 9 |
| sub-allocation) that was not recaptured by the Authority on | 10 |
| the earlier of May 1, 2010 or 30 days after the effective | 11 |
| date of this Section, but that has not been used for the | 12 |
| issuance of a recovery zone bond by July 1, 2010, is deemed | 13 |
| waived by that large local municipality (other than an | 14 |
| excluded municipality) and the Authority shall recapture | 15 |
| that amount on that date. | 16 |
| (G) Any large local municipality, municipality, or | 17 |
| county that has issued recovery zone bonds on or before the | 18 |
| effective date of this Section must report its issuance of | 19 |
| recovery zone bonds to the Authority within 30 days after | 20 |
| the effective date of this Section. After the effective | 21 |
| date of this Section, any large local municipality, | 22 |
| municipality, or county must report its issuance of | 23 |
| recovery zone bonds to the Authority not less than 30 days | 24 |
| after those bonds are issued. | 25 |
| (H) On and after July 2, 2010, the Authority may | 26 |
| re-allocate any portion of the unused allocation amount to |
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| one or more projects that, in the discretion of the | 2 |
| Authority, qualify for financing with proceeds of recovery | 3 |
| zone bonds. | 4 |
| (ii) Unless extended by an act of the United States | 5 |
| Congress, no recovery zone bonds may be issued after December | 6 |
| 31, 2010. | 7 |
| (e) Reports to the General Assembly. | 8 |
| Starting 60 days after the effective date of this Section | 9 |
| and ending on January 15, 2011, the Authority shall file a | 10 |
| report before the 15th day of each month with the General | 11 |
| Assembly detailing its implementation of this Section, | 12 |
| including but not limited to the dollar amount of the | 13 |
| allocation amount that has been re-allocated by the Authority | 14 |
| pursuant to this Section, the recovery zone bonds issued in the | 15 |
| State as of the date of the report, and descriptions of the | 16 |
| qualifying projects financed by those recovery zone bonds. | 17 |
| (f) Limitation on home rule units. | 18 |
| Pursuant to paragraphs (h) and (i) of Section 6 of Article | 19 |
| VII of the Illinois Constitution, this Section specifically | 20 |
| denies and limits the exercise by home rule units of any power | 21 |
| that is inconsistent with this Section, and all existing laws | 22 |
| and ordinances that are inconsistent with this Section are | 23 |
| hereby superseded. This Section does not preempt the concurrent | 24 |
| exercise by home rule units of powers consistent with this |
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| Section. | 2 |
| (20 ILCS 3501/825-110 new) | 3 |
| Sec. 825-110. Implementation of ARRA provisions regarding | 4 |
| qualified energy conservation bonds. | 5 |
| (a) Definitions. | 6 |
| (i) "Allocation amount" means the $133,846,000 amount of | 7 |
| qualified energy conservation bonds authorized under ARRA for | 8 |
| the financing of qualifying projects located within the State | 9 |
| and the sub-allocation of those amounts among each large local | 10 |
| government. | 11 |
| (ii) "ARRA" means, collectively, the American Recovery and | 12 |
| Reinvestment Act of 2009, including, without limitation, | 13 |
| Section 54D of the Code; the guidance provided by the Internal | 14 |
| Revenue Service applicable to qualified energy conservation | 15 |
| bonds; and any legislation subsequently adopted by the United | 16 |
| States Congress to extend or expand the economic development | 17 |
| bond financing incentives authorized by ARRA. | 18 |
| (iii) "ARRA implementing regulations" means the | 19 |
| regulations promulgated by the Authority as further described | 20 |
| in subdivision (c)(iv) of this Section to implement the | 21 |
| provisions of this Section. | 22 |
| (iv) "Code" means the Internal Revenue Code of 1986, as | 23 |
| amended. | 24 |
| (v) "Excluded local government" means any city within the |
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| State with a population in excess of 500,000 and any county | 2 |
| within the State with a population in excess of 1,000,000. | 3 |
| (vi) "Home rule unit" means a county or municipality that | 4 |
| is a home rule unit as provided in Section 6 of Article VII of | 5 |
| the Illinois Constitution of 1970. | 6 |
| (vii) "Large local government" means any municipality or | 7 |
| county within the State if that municipality or county has a | 8 |
| population of 100,000 or more, as defined in Section | 9 |
| 54D(e)(2)(C) of the Code. | 10 |
| (viii) "Qualified energy conservation bond" means any | 11 |
| qualified energy conservation bond issued pursuant to Section | 12 |
| 54D of the Code. | 13 |
| (ix) "Qualified energy conservation bond allocation" means | 14 |
| an allocation of authority to issue qualified energy | 15 |
| conservation bonds granted pursuant to Section 54D of the Code. | 16 |
| (x) "Sub-allocation" means the portion of the allocation | 17 |
| amount allocated to each large local government. | 18 |
| (xi) "Unused qualified energy conservation bond | 19 |
| allocation" means the amount of the qualified energy | 20 |
| conservation bond allocation that is recaptured and | 21 |
| re-allocated by the Authority pursuant to this Section. | 22 |
| (xii) "Waived qualified energy conservation bond | 23 |
| allocation" means the amount of the qualified energy | 24 |
| conservation bond allocation that a large local government | 25 |
| elects to release to the State pursuant to Section 54D(e)(2)(B) | 26 |
| of the Code. |
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| (b) Findings. | 2 |
| It is found and declared that: | 3 |
| (i) it is in the public interest and for the benefit of | 4 |
| the State to maximize the use of economic development | 5 |
| incentives authorized by ARRA; | 6 |
| (ii) those incentives include the maximum use of the | 7 |
| allocation amount for the issuance of qualified energy | 8 |
| conservation bonds to promote energy conservation under | 9 |
| the applicable provisions of ARRA; and | 10 |
| (iii) those incentives also include the issuance by the | 11 |
| Authority of qualified energy conservation bonds for the | 12 |
| purposes of financing qualifying projects with proceeds of | 13 |
| qualified energy conservation bonds. | 14 |
| (c) Powers of Authority. | 15 |
| (i) In order to carry out the provisions of ARRA and | 16 |
| further the purposes of this Section, the Authority has: | 17 |
| (A) the power to recapture all or a portion of unused | 18 |
| qualified energy conservation bond allocation from any | 19 |
| large local government (other than an excluded local | 20 |
| government) that has not allocated or does not reasonably | 21 |
| expect to allocate that amount to the issuance of one or | 22 |
| more qualified energy conservation bonds by the dates set | 23 |
| forth for that issuance in subsection (d) of this Section; | 24 |
| (B) the power to receive all or a portion of the waived |
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| qualified energy conservation bond allocation on behalf of | 2 |
| the State; | 3 |
| (C) the power to re-allocate all or a portion of that | 4 |
| unused qualified energy conservation bond allocation and | 5 |
| waived qualified energy conservation bond allocation for | 6 |
| the purpose of financing one or more projects that will | 7 |
| qualify for financing with proceeds of qualified energy | 8 |
| conservation bonds, for which the Authority has received a | 9 |
| request for a portion of the allocation amount; and | 10 |
| (D) the power to issue qualified energy conservation | 11 |
| bonds for any project authorized to be financed with | 12 |
| proceeds thereof under the applicable provisions of ARRA. | 13 |
| (ii) In addition to the powers set forth in item (i), the | 14 |
| Authority has the power to be the sole issuer of any qualified | 15 |
| energy conservation bonds for any project for which the | 16 |
| Authority has made a re-allocation of unused qualified energy | 17 |
| conservation bond allocation or waived qualified energy | 18 |
| conservation bond allocation. | 19 |
| (iii) In addition to the powers set forth in items (i) and | 20 |
| (ii), the Authority has any powers otherwise enjoyed by the | 21 |
| Authority in connection with the issuance of its bonds if those | 22 |
| powers are not in conflict with any provisions with respect to | 23 |
| qualified energy conservation bonds set forth in ARRA. | 24 |
| (iv) The Authority has the power to adopt regulations | 25 |
| providing for the implementation of any of the provisions | 26 |
| contained in this Section, including the recapture and |
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| re-allocation of all or any portion of the allocation amount | 2 |
| and the issuance of qualified energy conservation bonds; except | 3 |
| that those regulations shall not provide for the recapture or | 4 |
| re-allocation of an excluded local government's sub-allocation | 5 |
| without an excluded local government's consent. Regulations | 6 |
| adopted by the Authority for determining re-allocation of all | 7 |
| or any portion of the allocation amount may include, but are | 8 |
| not limited to, (1) the ability of the municipality or county | 9 |
| to issue qualified energy conservation bonds by the end of a | 10 |
| given calendar year, (2) the amount of jobs that will be | 11 |
| retained or created, or both, by the qualifying project to be | 12 |
| financed by qualified energy conservation bonds, and (3) the | 13 |
| geographical proximity of the qualifying project to be financed | 14 |
| by qualified energy conservation bonds to a county or | 15 |
| municipality that had its allocation amount re-allocated by the | 16 |
| Authority. | 17 |
| (d) Established dates for notice, recapture, waiver, and | 18 |
| re-allocation. | 19 |
| (i) In order to best effectuate the effective | 20 |
| implementation of the qualified energy conservation bond | 21 |
| provisions of ARRA, the following dates are deemed to apply: | 22 |
| (A) Any large local government (other than an excluded | 23 |
| local government) that plans to use its sub-allocation in a | 24 |
| given calendar year must notify the Authority no later than | 25 |
| June 15 of that calendar year as to the portion of the |
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| sub-allocation that large local government has allocated, | 2 |
| or expects to allocate, to a qualifying project. | 3 |
| (B) Any large local government (other than an excluded | 4 |
| local government) that does not notify the Authority as | 5 |
| required under item (A) is deemed to have forfeited the | 6 |
| sub-allocation and the amount of that large local | 7 |
| government's sub-allocation shall be deemed "recaptured" | 8 |
| by the Authority on that date. | 9 |
| (C) On or after July 1 of that calendar year, the | 10 |
| Authority may re-allocate any of the unused qualified | 11 |
| energy conservation bond allocation to one or more projects | 12 |
| that, in the discretion of the Authority, qualify for | 13 |
| financing with proceeds of qualified energy conservation | 14 |
| bonds. | 15 |
| (D) A large local government may voluntarily waive all | 16 |
| or a portion of its sub-allocation at any time by notifying | 17 |
| the Authority of its intention to do so. | 18 |
| (E) An excluded local government must notify the | 19 |
| Authority by July 1 of that year of its plans to use its | 20 |
| sub-allocation. | 21 |
| (F) In a given calendar year, any portion of a large | 22 |
| local government's sub-allocation (except for an excluded | 23 |
| local government's sub-allocation) that was not recaptured | 24 |
| by the Authority on June 15 of that year, but that has not | 25 |
| been used for the issuance of a qualified energy | 26 |
| conservation bond by August 15 of that year, is deemed |
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| waived by that large local government (other than an | 2 |
| excluded local government) and the Authority shall | 3 |
| recapture that amount on that date. | 4 |
| (G) On and after September 1 in a given calendar year, | 5 |
| the Authority may re-allocate any portion of the unused | 6 |
| allocation amount to one or more projects that, in the | 7 |
| discretion of the Authority, qualify for financing with | 8 |
| proceeds of qualified energy conservation bonds. | 9 |
| (H) Any large local government, municipality, or | 10 |
| county that has issued qualified energy conservation bonds | 11 |
| on or before the effective date of this Section must report | 12 |
| its issuance of qualified energy conservation bonds to the | 13 |
| Authority within 30 days after the effective date of this | 14 |
| Section. After the effective date of this Section, any | 15 |
| large local government, municipality, or county must | 16 |
| report its issuance of qualified energy conservation bonds | 17 |
| to the Authority not less than 30 days after those bonds | 18 |
| are issued. | 19 |
| (e) Reports to the General Assembly. | 20 |
| Starting 60 days after the effective date of this Section | 21 |
| and ending when there is no longer any allocation amount, the | 22 |
| Authority shall file a report before the 15th day of each month | 23 |
| with the General Assembly detailing its implementation of this | 24 |
| Section, including but not limited to the dollar amount of the | 25 |
| allocation amount that has been re-allocated by the Authority |
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| pursuant to this Section, the qualified energy conservation | 2 |
| bonds issued in the State as of the date of the report, and | 3 |
| descriptions of the qualifying projects financed by those | 4 |
| qualified energy conservation bonds. | 5 |
| (f) Limitation on home rule units. | 6 |
| Pursuant to paragraphs (h) and (i) of Section 6 of Article | 7 |
| VII of the Illinois Constitution, this Section specifically | 8 |
| denies and limits the exercise by home rule units of any power | 9 |
| that is inconsistent with this Section, and all existing laws | 10 |
| and ordinances that are inconsistent with this Section are | 11 |
| hereby superseded. This Section does not preempt the concurrent | 12 |
| exercise by home rule units of powers consistent with this | 13 |
| Section.
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| Section 99. Effective date. This Act takes effect upon | 15 |
| becoming law.".
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