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90_HB2736
30 ILCS 105/5.480 new
70 ILCS 505/27 new
70 ILCS 505/28 new
70 ILCS 505/29 new
70 ILCS 505/30 new
70 ILCS 505/31 new
70 ILCS 505/32 new
70 ILCS 505/33 new
70 ILCS 505/34 new
70 ILCS 505/35 new
230 ILCS 10/13 from Ch. 120, par. 2413
230 ILCS 10/13.2 new
230 ILCS 10/23
70 ILCS 505/25.1 rep.
Amends the East St. Louis Area Development Act and the
State Finance Act. Deletes provisions repealing the East St.
Louis Area Development Act on July 1, 1998. Creates a
demonstration enterprise zone in the East St. Louis area.
Provides that the East St. Louis Area Development Authority
shall exercise authority over the zone regarding specified
matters. Provides for operation of the zone and for the
creation of an Enterprise Zone Assistance Fund. Amends the
Riverboat Gambling Act by imposing an investment alternative
tax of 2.5% of the adjusted gross receipts from wagering on
East St. Louis riverboats. Part or all of the tax may be
waived if a licensee purchases bonds or makes other
investments approved by the Authority; otherwise the tax
shall be paid into the Enterprise Zone Assistance Fund.
Effective immediately.
LRB9008946LDbd
LRB9008946LDbd
1 AN ACT in relation to economic development, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Finance Act is amended by adding
6 Section 5.480 as follows:
7 (30 ILCS 105/5.480 new)
8 Sec. 5.480. The Enterprise Zone Assistance Fund.
9 Section 10. The East St. Louis Area Development Act is
10 amended by adding Sections 27, 28, 29, 30, 31, 32, 33, 34,
11 and 35 as follows:
12 (70 ILCS 505/27 new)
13 Sec. 27. Legislative Findings. The General Assembly
14 finds that the financial difficulties, inadequate tax base,
15 lack of vital services, lack of economic development and
16 various other problems in the East St. Louis area are unique
17 in Illinois, and that it is desirable to specifically address
18 those problems by authorizing the designation of a
19 demonstration enterprise zone in the East St. Louis area.
20 (70 ILCS 505/28 new)
21 Sec. 28. Applicability. The provisions of Sections 27
22 through 35 apply only to a demonstration enterprise zone, and
23 such provisions do not apply to any other enterprise zone.
24 All provisions of this Act apply to a demonstration
25 enterprise zone, except as follows:
26 (1) if the provisions of Sections 27 through 35 conflict
27 with other provisions of this Act, the provisions of Sections
28 27 through 35 shall control; and
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1 (2) with respect to the demonstration enterprise zone,
2 the Authority shall exercise and perform all powers, duties,
3 and functions under this Act that would be performed by the
4 Department of Commerce and Community Affairs with respect to
5 other enterprise zones.
6 (70 ILCS 505/29 new)
7 Sec. 29. Definitions. As used in Sections 27 through
8 35:
9 "Zone" or "enterprise zone" means a demonstration
10 enterprise zone.
11 "Area" means the city of East St. Louis area.
12 "Zone development corporation" means a nonprofit
13 corporation or association created by the Authority to
14 formulate and propose a preliminary zone development plan
15 under Section 32 of this Act.
16 "Zone development plan" means a plan adopted by the
17 Authority for the development of an enterprise zone, and for
18 the direction and coordination of activities of the area,
19 zone businesses, and community organizations within the
20 enterprise zone toward the economic betterment of the
21 residents of the zone and the area.
22 "Zone neighborhood association" means a corporation or
23 association of persons who either are residents of, or have
24 their principal place of employment in, the area; that is
25 organized under the provisions of the General Not For Profit
26 Corporation Act of 1986 and that has for its principal
27 purpose the encouragement and support of community activities
28 within, or on behalf of, the zone so as to (i) stimulate
29 economic activity, (ii) increase or preserve residential
30 amenities, or (iii) otherwise encourage community cooperation
31 in achieving the goals of the zone development plan.
32 "Enterprise Zone Assistance Fund" or "Fund" means the
33 Fund created by Section 35 of this Act.
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1 "Authority" means the East St. Louis Area Development
2 Authority.
3 (70 ILCS 505/30 new)
4 Sec. 30. Designation of Demonstration Enterprise Zone.
5 The Authority may by resolution designate a demonstration
6 enterprise zone in accordance with Section 32 of this Act. If
7 the approval of the demonstration enterprise zone require the
8 alteration or decertification of an existing enterprise zone,
9 the Authority shall take that action upon the adoption of
10 such a proposal.
11 (70 ILCS 505/31 new)
12 Sec. 31. Zone development corporation. The Authority
13 shall, by resolution, create a nonprofit corporation under
14 the provisions of General Not For Profit Corporation Act of
15 1986 to act as the zone development corporation for the
16 Authority. The zone development corporation so created shall
17 include on its board of directors representatives of the
18 governments of the area, members of the business community,
19 of the area, members of the labor community in the area, and
20 representatives of community organizations in the area, and
21 the total membership of the board of directors shall be
22 broadly representative of businesses and communities within
23 the area.
24 (70 ILCS 505/32 new)
25 Sec. 32. Preliminary zone development plan. The
26 Authority shall cause a preliminary zone development plan to
27 be formulated, with the assistance of any officers and
28 agencies of the area as the governing body may see fit. The
29 preliminary zone development plan shall set forth the
30 boundaries of the proposed enterprise zone, findings of fact
31 concerning the economic and social conditions existing in the
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1 property proposed for an enterprise zone, and the Authority's
2 policy and intentions for addressing these conditions, and
3 may include proposals respecting:
4 (1) Utilizing the powers conferred on the Authority by
5 law for the purpose of stimulating investment in and economic
6 development of the proposed zone in specific proposals that
7 promote industrial retention and development as a foundation
8 for general community development, that promotes providing
9 technical and financial assistance, promoting vocational and
10 entrepreneurial training, upgrading production techniques and
11 use of modern technology in local companies, promoting local
12 and cooperative ownership of companies, increasing community
13 participation in development strategies, and launching
14 specific initiatives to save existing companies, and to start
15 new companies in the proposed zone;
16 (2) Utilizing State assistance through the provisions of
17 this Act relating to exemptions from, and credits against,
18 State taxes;
19 (3) Securing the involvement in, and commitment to, zone
20 economic development by private entities, including zone
21 neighborhood associations, voluntary community organizations
22 supported by residents and businesses in the zone;
23 (4) Utilizing the powers conferred by law to revise
24 municipal planning and zoning ordinances and other land use
25 regulations as they pertain to the zone, in order to enhance
26 the attraction of the zone to prospective developers;
27 (5) Increasing the availability and efficiency of
28 support services, public and private, generally used by and
29 necessary to the efficient functioning of commercial and
30 industrial facilities in the area, and the extent to which
31 the increase or improvements are to be provided and financed
32 by the city governments in the area or by other entities; and
33 (6) Utilizing the powers of the zone development
34 corporation created by the Authority to provide short term
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1 contract financing, equipment installment loans, and
2 equity-match financing for selected small businesses located
3 in the area.
4 (70 ILCS 505/33 new)
5 Sec. 33. Proposals for funding. The Authority shall
6 receive and evaluate proposals from the demonstration
7 enterprise zone for funding of projects and increased
8 eligible municipal services from the Enterprise Zone
9 Assistance Fund.
10 (70 ILCS 505/34 new)
11 Sec. 34. Certification by Authority. The Authority
12 shall certify annually to the State Treasurer amounts to be
13 paid from the Fund to support approved projects and increased
14 eligible municipal services in the demonstration enterprise
15 zone.
16 (70 ILCS 505/35 new)
17 Sec. 35. Enterprise Zone Assistance Fund.
18 (a) There is created an Enterprise Zone Assistance Fund
19 to be held by the State Treasurer, which shall be the
20 repository for all moneys required to be deposited into the
21 Fund under Section 13.2 of the Riverboat Gambling Act, moneys
22 appropriated annually to the Fund and moneys available from
23 other sources. All moneys deposited in the Fund shall be held
24 and disbursed in the amounts necessary to fulfill the
25 purposes of this Section and shall be subject to the
26 requirements hereinafter prescribed. The State Treasurer may
27 invest and reinvest any moneys in the Fund, or any portion
28 thereof, in legal obligations of the United States or of the
29 State or of any political subdivision thereof. Any income
30 from, interest on, or increment to moneys so invested or
31 reinvested shall be included in the Fund.
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1 (b) The State Treasurer shall promulgate the rules
2 necessary to govern the administration of the Fund for the
3 purposes of this Section.
4 (c) The Fund shall be used for the purpose of assisting
5 the Authority in undertaking public improvements and in
6 upgrading eligible municipal services in the enterprise
7 zones.
8 (d) The Authority and the zone development corporation
9 created by the Authority for that enterprise zone may, by
10 resolution jointly adopted after public hearing, propose to
11 undertake a project for the public improvement of the
12 enterprise zone or to increase eligible municipal services in
13 the enterprise zone and to fund that project or increase in
14 eligible municipal services from moneys deposited in the
15 Fund. The proposal so adopted shall set forth a plan for the
16 project or for the increase in eligible municipal services
17 and shall include:
18 (1) A description of the proposed project or of the
19 municipal services to be increased;
20 (2) An estimate of the total project costs, or of
21 the total costs of increasing the municipal services, and
22 an estimate of the amounts of funding necessary annually
23 from the Fund;
24 (3) A statement of any other revenue sources to be
25 used to finance the project or to fund the increase in
26 eligible municipal services; and
27 (4) A statement of the manner in which the proposed
28 project or increase in municipal services furthers the
29 Authority's policy and intentions for addressing the
30 economic and social conditions existing in the area of
31 the enterprise zone.
32 As used in this Section, "project" means the purchasing,
33 leasing, condemning, or otherwise acquiring of land or other
34 property, or an interest therein, in the enterprise zone or
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1 as necessary for a right-of-way or other easement to or from
2 the enterprise zone; the relocating and moving of persons
3 displaced by the acquisition of land or property; the
4 rehabilitation and redevelopment of land or property,
5 including demolition, clearance, removal, relocation,
6 renovation, alteration, construction, reconstruction,
7 installation or repair of land or a building, street,
8 highway, alley, utility, service, or other structure or
9 improvement; the acquisition, construction, reconstruction,
10 rehabilitation, or installation of public facilities and
11 improvements, except buildings and facilities for the general
12 conduct of government and schools; and the costs associated
13 therewith including the costs of an administrative appraisal,
14 economic and environmental analyses or engineering, planning,
15 design, architectural, surveying or other professional
16 services necessary to effectuate the project.
17 As used in this Section, "eligible municipal services"
18 means the hiring of additional policemen or firemen assigned
19 duties in the enterprise zone, or the purchasing or leasing
20 of additional police or fire vehicles, equipment, or
21 apparatus to be used for the provision of augmented or
22 upgraded public safety services in the enterprise zone and
23 its immediate vicinity.
24 (e) Upon adoption by the Authority and by the zone
25 development corporation, the proposal shall be sent to the
26 Authority for its evaluation and approval. The Authority and
27 the zone development corporation shall approve the proposal
28 if:
29 (1) In the case of a project, the proposed project
30 furthers the policy and intentions of the zone
31 development plan and the estimated annual payments for
32 the project from the Fund are not likely to result in a
33 deficit in the Fund;
34 (2) In the case of an increase in eligible
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1 municipal services, the proposal furthers the policy and
2 intentions of the zone development plan, the Authority
3 has furnished satisfactory assurances that the additional
4 policemen or firemen to be hired, or the additional
5 vehicles, equipment, or apparatus to be purchased or
6 leased, shall be used to augment or upgrade public safety
7 in the enterprise zone and shall not be used in other
8 areas of the area; the Authority shall annually
9 appropriate for the increased eligible municipal services
10 an amount equal to 20% of the amount of annual payments
11 for the eligible municipal services from the Fund; and
12 the estimated annual payments for the eligible municipal
13 services from the Fund are not likely to result in a
14 deficit in the Fund.
15 (f) The Authority shall annually certify to the State
16 Treasurer the amount to be paid in that year from the Fund
17 with respect to each project or increase in eligible
18 municipal services approved. The Authority may at any time
19 revoke its approval of a project or an increase in eligible
20 municipal services if it finds that the annual payments made
21 from the Fund are not being used as required by this Section.
22 (g) Upon certification by the Authority of the annual
23 amount to be paid to the Authority with respect to any
24 project or increase in eligible municipal services, the State
25 Treasurer shall pay in each year to the Authority from the
26 amounts deposited in the Fund the amount so certified.
27 Section 15. The Riverboat Gambling Act is amended by
28 changing Sections 13 and 23 and adding Section 13.2 as
29 follows:
30 (230 ILCS 10/13) (from Ch. 120, par. 2413)
31 Sec. 13. Wagering tax; rate; distribution.
32 (a) Until January 1, 1998, a tax is imposed on the
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1 adjusted gross receipts received from gambling games
2 authorized under this Act at the rate of 20%.
3 Beginning January 1, 1998, a privilege tax is imposed on
4 persons engaged in the business of conducting riverboat
5 gambling operations, based on the adjusted gross receipts
6 received by a licensed owner from gambling games authorized
7 under this Act at the following rates:
8 15% of annual adjusted gross receipts up to and
9 including $25,000,000;
10 20% of annual adjusted gross receipts in excess of
11 $25,000,000 but not exceeding $50,000,000;
12 25% of annual adjusted gross receipts in excess of
13 $50,000,000 but not exceeding $75,000,000;
14 30% of annual adjusted gross receipts in excess of
15 $75,000,000 but not exceeding $100,000,000;
16 35% of annual adjusted gross receipts in excess of
17 $100,000,000.
18 The taxes imposed by this Section shall be paid by the
19 licensed owner to the Board not later than 3:00 o'clock p.m.
20 of the day after the day when the wagers were made.
21 (b) Until January 1, 1998, 25% of the tax revenue
22 deposited in the State Gaming Fund under this Section shall
23 be paid, subject to appropriation by the General Assembly, to
24 the unit of local government which is designated as the home
25 dock of the riverboat. Beginning January 1, 1998, from the
26 tax revenue deposited in the State Gaming Fund under this
27 Section, an amount equal to 5% of adjusted gross receipts
28 generated by a riverboat shall be paid monthly, subject to
29 appropriation by the General Assembly, to the unit of local
30 government that is designated as the home dock of the
31 riverboat.
32 (c) Appropriations, as approved by the General Assembly,
33 may be made from the State Gaming Fund to the Department of
34 Revenue and the Department of State Police for the
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1 administration and enforcement of this Act.
2 (d) From time to time, the Board shall transfer the
3 remainder of the funds generated by this Act, except the tax
4 revenue generated pursuant to Section 13.2, into the
5 Education Assistance Fund, created by Public Act 86-0018, of
6 the State of Illinois.
7 (e) Nothing in this Act shall prohibit the unit of local
8 government designated as the home dock of the riverboat from
9 entering into agreements with other units of local government
10 in this State or in other states to share its portion of the
11 tax revenue.
12 (f) To the extent practicable, the Board shall
13 administer and collect the wagering taxes imposed by this
14 Section in a manner consistent with the provisions of
15 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
16 6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and
17 Section 3-7 of the Uniform Penalty and Interest Act.
18 (Source: P.A. 89-21, eff. 7-1-95; 90-548, eff. 12-4-97)
19 (230 ILCS 10/13.2 new)
20 Sec. 13.2. Investment alternative tax; credits; bond
21 purchase contracts.
22 (a) Commencing with the first calendar year beginning
23 after December 31, 1998, there is imposed an investment
24 alternative tax on the adjusted gross receipts of each
25 licensed owner conducting gambling operations under this Act
26 from a home dock in the City of East St. Louis. The amount
27 of the tax is 2.5% of the adjusted gross receipts. The tax
28 imposed with respect to each calendar year shall be due and
29 payable on the last day of April next following the end of
30 the calendar year. The State Treasurer shall have a lien
31 against the property constituting the riverboats and on-shore
32 facilities owned by a licensee for the amount of any tax not
33 paid when due.
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1 (b) A licensee shall pay to the State Treasurer on or
2 before the 15th day of the first, fourth, seventh, and tenth
3 months of each year as partial payment of the investment
4 alternative tax imposed under subsection (a) an amount equal
5 to 1.25% of the estimated adjusted gross receipts for the
6 3-month period immediately preceding the first day of those
7 months. The moneys received shall be placed in an escrow
8 account and shall be held until the licensee directs that the
9 moneys be transferred to the East St. Louis Area Development
10 Authority for the purchase of bonds issued by or offered
11 through the Authority or under a contract for such a
12 purchase, be made available to the licensee for a direct
13 investment approved by the Authority, or be transferred to
14 the Enterprise Zone Assistance Fund as partial payment of the
15 investment alternative tax imposed under subsection (a). Any
16 interest derived from the moneys in the escrow account shall
17 be paid into the Enterprise Zone Assistance Fund. If a
18 licensee fails to pay the amount due or underpays by an
19 unjustifiable amount, the Gaming Board shall impose a fine of
20 5% of the amount due or of the underpayment, as the case may
21 be, for each month or portion of a month the licensee is in
22 default of payment, up to 25% of the amount in default. Any
23 fine imposed shall be paid into the Enterprise Zone
24 Assistance Fund.
25 (c) Each licensee required to pay tax under this Section
26 shall be entitled to an investment tax credit against the tax
27 imposed by subsection (a) in the following amounts: (1) for
28 the first 10 years of a licensee's tax obligation, in an
29 amount equal to twice the purchase price of bonds issued by
30 the Authority purchased by the licensee, or twice the amount
31 of the investments authorized in lieu thereof, and (2) for
32 the remainder of a licensee's obligation, in an amount equal
33 to twice the purchase price of bonds issued by the Authority
34 and purchased by the licensee, or twice the amount of the
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1 investments authorized in lieu thereof, and twice the amount
2 of investments made by a licensee in other investments
3 approved by the Authority. The Authority shall have the
4 power to enter into a contract or contracts with a licensee
5 under which the Authority agrees to issue and sell bonds to
6 the licensee, and the licensee agrees to purchase the bonds
7 issued by or offered through the Authority, in annual
8 purchase price amounts as will constitute a credit against at
9 least 50% of the tax to become due in any future year or
10 years. The contract may contain those terms and conditions
11 relating to the terms of the bonds and to the issuance and
12 sale of the bonds to the licensee as the Authority shall deem
13 necessary or desirable. After the first 10 years of a
14 licensee's investment alternative tax obligation, a licensee
15 will have the option of entering into a contract with the
16 Authority to have its tax credit comprised of direct
17 investments in approved eligible projects. These direct
18 investments shall not comprise more than 50% of a licensee's
19 eligible tax credit in any one year.
20 The entering of a contract under this Section shall be
21 sufficient to entitle a licensee to an investment tax credit
22 for the appropriate tax year.
23 (d) A contract entered into between a licensee and the
24 Authority may provide for a deferral of payment for and
25 delivery of bonds required to be purchased and for a deferral
26 from making approved eligible investments in any year, but no
27 deferral shall occur more than 2 years consecutively. A
28 deferral of payment for any bonds required to be purchased by
29 a licensee and a deferral from making approved eligible
30 investments may be granted by the Authority only upon a
31 determination by the Gaming Board that purchase of these
32 bonds or making approved eligible investments would cause
33 extreme financial hardship to the licensee and a
34 determination by the Authority that the deferral of the
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1 payment would not violate any covenant or agreement or impair
2 any financial obligation of the Authority. The contract may
3 establish a late payment charge to be paid in the event of
4 deferral or other late payment at an agreed rate. If a
5 deferral of purchase or investment is granted, the licensee
6 shall be deemed to have made the purchase or investment at
7 the time required by the contract, except that if the
8 purchase is not made at the time to which the purchase or
9 investment was deferred, then the licensee shall be deemed
10 not to have made the purchase or investment. The Gaming
11 Board shall adopt rules establishing a uniform definition of
12 extreme financial hardship applicable to all contracts. If a
13 licensee petitions the Authority for a deferral, the
14 Authority shall give notice of that petition to the Gaming
15 Board within 3 days of the filing of the petition. The
16 Gaming Board shall render a decision within 60 days of the
17 notice as to whether the licensee has established extreme
18 financial hardship. The Authority shall render a decision as
19 to the availability of the deferral within 10 days of the
20 receipt by it of the decision of the Gaming Board and shall
21 notify the Gaming Board of that decision. If a deferral is
22 granted, the Authority may determine whether the purchases of
23 investments shall be made in a lump sum or made over a period
24 of years, or whether the period of obligation shall be
25 extended an additional period of time equivalent to the
26 period of time deferred.
27 (e) The license of any licensee that has defaulted for a
28 period of 90 days in its obligation to make any purchase of
29 bonds or investment in any approved eligible project under a
30 contract entered into under subsection (c) of this Section
31 for a period of 90 days may be suspended by the Gaming Board
32 until that purchase is made or deferred in accordance with
33 subsection (c) of this Section, or a fine or other penalty
34 may be imposed upon the licensee by the Gaming Board. If the
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1 Gaming Board elects not to suspend the license of a licensee
2 after the licensee has first defaulted in its obligation but
3 instead imposes some lesser penalty and the licensee
4 continues to be in default of its obligation after a period
5 of 30 additional days and after any subsequent 30-day period,
6 the Gaming Board may impose another fine or penalty upon the
7 licensee, which may include suspension of that licensee's
8 license. The fine shall be 5% of the amount of the
9 obligation owed for each month or portion of a month a
10 licensee is in default, up to 25% of that obligation. The
11 fine shall be paid into the Enterprise Zone Assistance Fund.
12 (f) A contract entered into by a licensee and the
13 Authority under subsection (c) of this Section may provide
14 that after the first 10 years of a licensee's investment
15 alternative tax obligation imposed by subsection (a) of this
16 Section, the Authority may repurchase bonds previously sold
17 to the licensee, which were issued after the tenth year of a
18 licensee's investment alternative tax obligation, by the
19 Authority, if the Authority determines that the repurchase
20 will not violate any agreement or covenant or impair any
21 financial obligation of the Authority and that the licensee
22 will reinvest the proceeds of the resale in an eligible
23 project approved by the Authority.
24 (g) During the 25 years a licensee is obligated to pay
25 an investment alternative tax under subsection (o) of this
26 Section, the total of the proceeds of all bonds purchased by
27 a licensee from or through the Authority and all approved
28 investments in eligible projects by a licensee shall be
29 devoted to the financing of projects in the East St. Louis
30 Depressed Areas.
31 For the purposes of this Section, bond "proceeds" means
32 all funds received from the sale of bonds and any funds
33 generated or derived therefrom, "East St. Louis Depressed
34 Areas" means the territorial areas of East St. Louis,
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1 Alorton, Venice, Centreville, and Brooklyn, Illinois, and
2 "Depressed Areas" means the areas of East St. Louis, Alorton,
3 Venice, Centreville, and Brooklyn, Illinois.
4 The Authority shall determine the allocation of projected
5 available moneys. Municipalities receiving an allocation
6 shall present to the Authority for its approval comprehensive
7 plans or projects for which the allocations shall be used.
8 Any comprehensive plans or projects may be submitted to the
9 Authority for a determination of eligibility at any time
10 before the year for which the funds are allocated, and the
11 Authority shall make a determination of eligibility of the
12 plan or project within a reasonable amount of time. If the
13 Authority makes a positive determination of eligibility for
14 any comprehensive plan or project, or combination of
15 comprehensive plans or projects, for any municipality, the
16 Authority shall make available sufficient funds in subsequent
17 years necessary to complete those plans or projects, or to
18 complete that portion of the plan or project originally
19 agreed to be funded through the Authority, from funds
20 received by the Authority in subsequent years. If the
21 comprehensive plan or project is determined by the Authority
22 not to be an eligible plan or project, the municipality may
23 submit any other comprehensive plan or project for a
24 determination of eligibility. If, however, the municipality
25 fails to receive a positive determination of eligibility for
26 any comprehensive plan or project, or combination of
27 comprehensive plans or projects, sufficient to exhaust the
28 total allocation to that municipality for any year before
29 April 30 of the following year for which the allocation was
30 made, the allocation to that municipality for that year shall
31 cease, and the Authority may apply those excess funds to any
32 other comprehensive plan or project in any other municipality
33 in the Depressed Areas whose comprehensive plan or project
34 has received a positive determination of eligibility by the
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1 Authority.
2 (h) Commencing with the first year in which a licensee
3 incurs a tax obligation under this Section, and for the
4 period of 2 years thereafter, 100% of the proceeds of all
5 bonds purchased by a licensee from the Authority that are
6 devoted to the financing of projects in Depressed Areas shall
7 be used exclusively to finance the rehabilitation,
8 development, or construction of, or to provide mortgage
9 financing of, housing facilities in the Depressed Areas for
10 persons or families of low through middle income, as defined
11 in this Section. For the purposes of this Section, the
12 "rehabilitation, development, or construction of housing
13 facilities" includes expenses attributable to site
14 preparation, infrastructure needs, and housing-related
15 community facilities and services, including supporting
16 commercial development. Commencing with the fourth year in
17 which a licensee incurs a tax obligation under this
18 subsection, 50% of the proceeds of all bonds purchased by a
19 licensee from the Authority that are devoted to the financing
20 of projects in Depressed Areas shall be used exclusively to
21 finance the rehabilitation, development, or construction of
22 housing facilities in the Depressed Areas for persons or
23 families of low through middle income. Commencing with the
24 eleventh year in which a licensee incurs a tax obligation
25 under this Section, 50% of the annual aggregate of the
26 proceeds of bonds purchased by a licensee from the Authority
27 that are devoted to the financing of projects and investments
28 in approved eligible projects commenced by a licensee shall
29 be used exclusively to finance the rehabilitation,
30 development, or construction of, or to provide mortgage
31 financing of, housing facilities in the Depressed Areas for
32 persons or families of low through middle income.
33 (i) The General Assembly finds that it is necessary to
34 provide for a balanced community and develop a comprehensive
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1 housing program. The Authority shall determine the need for
2 housing in the Depressed Areas in consultation with the
3 municipalities in the Depressed Areas. This shall include
4 determining the types and classes of housing to be
5 constructed and the number of units of each type and class of
6 housing to be built. The Authority shall give priority to
7 the housing needs of the persons and their families residing
8 in the Depressed Areas in 1997 and continuing their residency
9 through the effective date of this amendatory Act of 1998.
10 The actual percentage of the proceeds of bonds and
11 investments in approved eligible projects commenced by a
12 licensee which shall be used exclusively to finance the
13 rehabilitation, development, or construction of, or to
14 provide mortgage financing of, housing facilities in the
15 Depressed Areas shall be based upon the Authority's
16 determination of the need for housing in the Depressed Areas.
17 Once the housing needs of the persons residing in the
18 Depressed Areas in 1997 and continuing their residency
19 through the effective date of this amendatory Act of 1998
20 have been met, as determined by the Authority, any required
21 percentages for such housing in the Depressed Areas may, in
22 its sole discretion, be waived by the Authority. To aid the
23 Authority in making these determinations, the Authority shall
24 review the proposal for a housing redevelopment program and
25 strategy approved and adopted by the Gaming Board and shall
26 give priority to it and any other plan or project that is
27 consistent with the standards of this Section and is
28 acceptable to the Authority. The Authority may determine
29 whether the funds used to finance housing facilities for
30 persons or families of low, moderate, median range, and
31 middle income are derived from the proceeds of bonds
32 purchased by a licensee from the Authority to be devoted to
33 the financing of projects in the Depressed Areas, investments
34 in approved eligible projects commenced by the licensee, or a
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1 combination of both. Any investment made by a licensee in
2 excess of 100% of its eligible investment tax credit during
3 the first 3 years and in excess of 50% thereafter in either
4 the purchase of bonds or direct investments in approved
5 eligible projects for low, moderate, median range, and middle
6 income family housing facilities in the Depressed Areas may
7 be carried forward and credited against the licensee's
8 obligation to make a 100% investment during the first 3 years
9 and 50% thereafter in low, moderate, median range, and middle
10 income family housing in any future year, with the approval
11 of the Authority. For the purposes of this Section, "low
12 income families" means families whose income does not exceed
13 50% of the median income of the area, with adjustments for
14 smaller and larger families. "Moderate income families"
15 means families whose income does not exceed 80% and is not
16 less than 50% of the median income for the area, with
17 adjustments for smaller and larger families. "Median range
18 income families" means families whose income does not exceed
19 120% and is not less than 80% of the median income for the
20 area, with adjustments for smaller and larger families.
21 "Middle income families" means families whose income does not
22 exceed 150% and is not less than 120% of the median income
23 for the area, with adjustments for smaller and larger
24 families. "Median income" means an income defined as median
25 within the appropriate Standard Metropolitan Statistical Area
26 by the United States Department of Housing and Urban
27 Development. To achieve a balanced community, the Authority
28 shall ensure that the development of housing for families of
29 low and moderate income shall proceed at the same time as
30 housing for families of median range and middle income, until
31 there is no longer a need for such facilities in the
32 Depressed Areas, as determined by the Authority.
33 (j) Nothing shall be implemented or waived by the
34 Authority which would reduce, impair, or prevent the
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1 fulfillment of the priorities established and contained in
2 this amendatory Act of 1998.
3 (k) If a licensee receives the prior approval of the
4 Authority, the licensee may make eligible investments in
5 excess of the investments necessary to receive a tax credit
6 against the investment alternative tax for a given calendar
7 year, and the licensee may carry forward this excess
8 investment and have it credited to its next investment
9 alternative tax obligation. If the Authority approves of
10 this excess investment and approves the carry forward of this
11 excess investment, and a licensee elects to purchase bonds of
12 the Authority or makes direct investments in approved
13 eligible projects in excess of the investments necessary to
14 receive a tax credit against the investment alternative tax
15 for its current obligation, the licensee shall be entitled to
16 a reduction of the amount of investments necessary in future
17 years, which amount shall be determined annually by the
18 Authority, taking into account a current market discount rate
19 from the date of the purchase or investment to the date the
20 purchase or investment would have been required to be made.
21 (l) Each licensee shall prepare and file, in a form
22 prescribed by the Authority, an annual return reporting that
23 financial information as shall be deemed necessary by the
24 Authority to carry out the provisions of this amendatory Act
25 of 1998. This return shall be filed with the Authority and
26 the Gaming Board on or before April 30 following the calendar
27 year on which the return is based. The Gaming Board shall
28 verify to the Authority the information contained in the
29 report, to the fullest extent possible. Nothing in this
30 subsection shall be deemed to affect the due dates for making
31 any investment or paying any tax under this Section.
32 (m) Any purchase by a licensee of bonds issued by or
33 offered through the Authority and all approved eligible
34 investments made by a licensee are to be considered
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1 investments and not taxes owed or grants to the State or any
2 political subdivision. As such, a licensee shall have the
3 possibility of the return of principal and a return on the
4 capital invested as with other investments. Investors in the
5 bonds issued by or offered through the Authority shall be
6 provided with an opinion from a recognized financial rating
7 agency or a financial advisory firm with national standing
8 that each loan of bond proceeds by the Authority has the
9 minimum characteristics of an investment, in that a degree of
10 assurance exists that interest and principal payments can be
11 made and other terms of the proposed investment be maintained
12 over the period of the investment, and that the loan of the
13 bond proceeds would qualify for a bond rating of "C" or
14 better. If an opinion cannot be obtained from a recognized
15 financial rating agency or a financial advisory firm with
16 national standing, an opinion shall be obtained from an
17 expert financial analyst with national standing, selected and
18 hired by the Authority. In order to achieve a balanced
19 portfolio, assure the viability of the Authority and the
20 projects, facilities, and programs undertaken under this
21 amendatory Act of 1998, no more than 25% of the total
22 investments made by or through the Authority with the
23 proceeds of bonds generated in each year shall be investments
24 which would qualify for a bond rating of "C", unless all
25 holders of obligations in each year agree to waive the 25%
26 limit for that year. Nothing in this Section shall be
27 interpreted as limiting the Authority from taking any steps
28 it deems appropriate to protect the characteristics of its
29 investment in projects or any other investments from not
30 being real investments with a prospect for the return of
31 principal and a return on the capital invested. Nothing in
32 this Section shall be considered a guarantee by the State or
33 any political subdivision of any return of principal or
34 interest, but any purchase by a licensee of bonds or approved
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1 eligible investments made by a licensee under this Section
2 shall be at the risk of the licensee. A licensee purchasing
3 an issue of bonds issued by the Authority in any given year
4 may arrange, at its option, for those bonds or the
5 investments, made by or through the Authority with the
6 proceeds of those bonds to be insured. The cost of any
7 insurance purchased by a licensee shall be paid by the
8 licensee desiring the insurance.
9 (n) The Authority shall adopt rules necessary to carry
10 out the purposes of this Section.
11 (o) The obligation of a licensee to pay an investment
12 alternative tax under this Section shall end 25 years after
13 any investment alternative tax obligation is first incurred
14 by the licensee, unless extended in connection with a
15 deferral granted by the Authority under this Section.
16 (230 ILCS 10/23) (from Ch. 120, par. 2423)
17 Sec. 23. The State Gaming Fund. On or after the
18 effective date of this Act, all of the fees and taxes
19 collected pursuant to subsections of this Act, except tax
20 revenue collected pursuant to Section 13.2, shall be
21 deposited into the State Gaming Fund, a special fund in the
22 State Treasury, which is hereby created. Fines and penalties
23 collected pursuant to this Act shall be deposited into the
24 Education Assistance Fund, created by Public Act 86-0018, of
25 the State of Illinois.
26 (Source: P.A. 86-1029.)
27 (70 ILCS 505/25.1 rep.)
28 Section 20. The East St. Louis Area Development Act is
29 amended by repealing Section 25.1.
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.