Public Act 093-0968
 
HB0622 Enrolled LRB093 05843 DRJ 05936 b

    AN ACT in relation to economic development.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. Short title. This Act may be cited as the
Southeastern Illinois Economic Development Authority Act.
 
    Section 10. Findings. The General Assembly determines and
declares the following:
    (1) that labor surplus areas currently exist in
southeastern Illinois;
    (2) that the economic burdens resulting from involuntary
unemployment fall, in part, upon the State in the form of
increased need for public assistance and reduced tax revenues
and, in the event that the unemployed worker and his or her
family migrate elsewhere to find work, the burden may also fall
upon the municipalities and other taxing districts within the
areas of unemployment in the form of reduced tax revenues,
thereby endangering their financial ability to support
necessary governmental services for their remaining
inhabitants;
    (3) that the State has a responsibility to help create a
favorable climate for new and improved job opportunities for
its citizens by encouraging the development of tourism,
commercial, and service businesses and industrial and
manufacturing plants within the southeastern region of
Illinois;
    (4) that a lack of decent housing contributes to urban
blight, crime, anti-social behavior, disease, a higher need for
public assistance, reduced tax revenues, and the migration of
workers and their families away from areas which fail to offer
adequate, decent, and affordable housing;
    (5) that decent, affordable housing is a necessary
ingredient of life affording each citizen basic human dignity,
a sense of self worth, confidence, and a firm foundation upon
which to build a family and educate children;
    (6) that in order to foster civic and neighborhood pride,
citizens require access to educational institutions,
recreation, parks and open spaces, entertainment, sports, a
reliable transportation network, cultural facilities, and
theaters; and
    (7) that the main purpose of this Act is to promote
industrial, commercial, residential, service, transportation,
and recreational activities and facilities, thereby reducing
the evils attendant upon unemployment and enhancing the public
health, safety, morals, happiness, and general welfare of the
State.
 
    Section 15. Definitions. In this Act:
    "Authority" means the Southeastern Illinois Economic
Development Authority.
    "Governmental agency" means any federal, State, or local
governmental body and any agency or instrumentality thereof,
corporate or otherwise.
    "Person" means any natural person, firm, partnership,
corporation, both domestic and foreign, company, association
or joint stock association and includes any trustee, receiver,
assignee or personal representative thereof.
    "Revenue bond" means any bond issued by the Authority, the
principal and interest of which is payable solely from revenues
or income derived from any project or activity of the
Authority.
    "Board" means the Board of Directors of the Southeastern
Illinois Economic Development Authority.
    "Governor" means the Governor of the State of Illinois.
    "City" means any city, village, incorporated town, or
township within the geographical territory of the Authority.
    "Industrial project" means the following:
    (1) a capital project, including one or more buildings and
other structures, improvements, machinery and equipment
whether or not on the same site or sites now existing or
hereafter acquired, suitable for use by any manufacturing,
industrial, research, transportation or commercial enterprise
including but not limited to use as a factory, mill, processing
plant, assembly plant, packaging plant, fabricating plant,
ethanol plant, office building, industrial distribution
center, warehouse, repair, overhaul or service facility,
freight terminal, research facility, test facility, power
generation facility, mining operation, railroad facility,
solid waste and wastewater treatment and disposal sites and
other pollution control facilities, resource or waste
reduction, recovery, treatment and disposal facilities,
tourism-related facilities, including hotels, theaters, water
parks, and amusement parks, and including also the sites
thereof and other rights in land therefore whether improved or
unimproved, site preparation and landscaping and all
appurtenances and facilities incidental thereto such as
utilities, access roads, railroad sidings, truck docking and
similar facilities, parking facilities, dockage, wharfage,
railroad roadbed, track, trestle, depot, terminal, switching
and signaling equipment or related equipment and other
improvements necessary or convenient thereto; or
    (2) any land, buildings, machinery or equipment comprising
an addition to or renovation, rehabilitation or improvement of
any existing capital project.
    "Commercial project" means any project, including, but not
limited to, one or more buildings and other structures,
improvements, machinery, and equipment, whether or not on the
same site or sites now existing or hereafter acquired, suitable
for use by any retail or wholesale concern, distributorship, or
agency, or health facility or retirement facility.
    "Project" means an industrial, housing, residential,
commercial, or service project, or any combination thereof,
provided that all uses fall within one of the categories
described above. Any project automatically includes all site
improvements and new construction involving sidewalks, sewers,
solid waste and wastewater treatment and disposal sites and
other pollution control facilities, resource or waste
reduction, recovery, treatment and disposal facilities, parks,
open spaces, wildlife sanctuaries, streets, highways, and
runways.
    "Lease agreement" means an agreement in which a project
acquired by the Authority by purchase, gift, or lease is leased
to any person or corporation that will use, or cause the
project to be used, as a project, upon terms providing for
lease rental payments at least sufficient to pay, when due, all
principal of and interest and premium, if any, on any bonds,
notes, or other evidences of indebtedness of the Authority,
issued with respect to the project, providing for the
maintenance, insurance, and operation of the project on terms
satisfactory to the Authority and providing for disposition of
the project upon termination of the lease term, including
purchase options or abandonment of the premises, with other
terms as may be deemed desirable by the Authority.
    "Loan agreement" means any agreement in which the Authority
agrees to loan the proceeds of its bonds, notes, or other
evidences of indebtedness, issued with respect to a project, to
any person or corporation which will use or cause the project
to be used as a project, upon terms providing for loan
repayment installments at least sufficient to pay, when due,
all principal of and interest and premium, if any, on any
bonds, notes, or other evidences of indebtedness of the
Authority issued with respect to the project, providing for
maintenance, insurance, and operation of the project on terms
satisfactory to the Authority and providing for other terms
deemed advisable by the Authority.
    "Financial aid" means the expenditure of Authority funds or
funds provided by the Authority for the development,
construction, acquisition or improvement of a project, through
the issuance of revenue bonds, notes, or other evidences of
indebtedness.
    "Costs incurred in connection with the development,
construction, acquisition or improvement of a project" means
the following:
    (1) the cost of purchase and construction of all lands and
improvements in connection therewith and equipment and other
property, rights, easements, and franchises acquired which are
deemed necessary for the construction;
    (2) financing charges;
    (3) interest costs with respect to bonds, notes, and other
evidences of indebtedness of the Authority prior to and during
construction and for a period of 6 months thereafter;
    (4) engineering and legal expenses; and
    (5) the costs of plans, specifications, surveys, and
estimates of costs and other expenses necessary or incident to
determining the feasibility or practicability of any project,
together with such other expenses as may be necessary or
incident to the financing, insuring, acquisition, and
construction of a specific project and the placing of the same
in operation.
 
    Section 20. Creation.
    (a) There is created a political subdivision, body politic,
and municipal corporation named the Southeastern Illinois
Economic Development Authority. The territorial jurisdiction
of the Authority is that geographic area within the boundaries
of the following counties: Fayette, Cumberland, Clark,
Effingham, Jasper, Crawford, Marion, Clay, Richland, Lawrence,
Jefferson, Wayne, Edwards, Wabash, Hamilton, and White and any
navigable waters and air space located therein.
    (b) The governing and administrative powers of the
Authority shall be vested in a body consisting of 10 members as
follows:
        (1) Nine members shall be appointed by the Governor
    with the advice and consent of the Senate.
        (2) One member shall be appointed by the Director of
    Commerce and Economic Opportunity.
    All public members shall reside within the territorial
jurisdiction of the Authority. The public members shall be
persons of recognized ability and experience in one or more of
the following areas: economic development, finance, banking,
industrial development, state or local government, commercial
agriculture, small business management, real estate
development, community development, venture finance, organized
labor, or civic or community organization.
    (c) Six members shall constitute a quorum.
    (d) The chairman of the Authority shall be elected annually
by the Board.
    (e) The terms of all initial members of the Authority shall
begin 30 days after the effective date of this Act. Of the 10
original members appointed pursuant to subsection (b), one
shall serve until the third Monday in January, 2005; one shall
serve until the third Monday in January, 2006; 2 shall serve
until the third Monday in January, 2007; 2 shall serve until
the third Monday in January, 2008; 2 shall serve until the
third Monday in January, 2009; and 2 shall serve until the
third Monday in January, 2010. All successors to these original
public members shall be appointed by the Governor with the
advice and consent of the Senate, or by the Director of
Commerce and Economic Opportunity, as the case may be, pursuant
to subsection (b), and shall hold office for a term of 3 years
commencing the third Monday in January of the year in which
their term commences, except in the case of an appointment to
fill a vacancy. Vacancies occurring among the public members
shall be filled for the remainder of the term. In case of
vacancy in a Governor-appointed membership when the Senate is
not in session, the Governor may make a temporary appointment
until the next meeting of the Senate when a person shall be
nominated to fill the office and, upon confirmation by the
Senate, he or she shall hold office during the remainder of the
term and until a successor is appointed and qualified. Members
of the Authority are not entitled to compensation for their
services as members but are entitled to reimbursement for all
necessary expenses incurred in connection with the performance
of their duties as members. Members of the Board may
participate in Board meetings by teleconference or video
conference.
    (f) The Governor may remove any public member of the
Authority appointed by the Governor, and the Director of
Commerce and Economic Opportunity may remove any public member
appointed by the Director, in case of incompetence, neglect of
duty, or malfeasance in office.
    (g) The Board shall appoint an Executive Director who shall
have a background in finance, including familiarity with the
legal and procedural requirements of issuing bonds, real
estate, or economic development and administration. The
Executive Director shall hold office at the discretion of the
Board. The Executive Director shall be the chief administrative
and operational officer of the Authority, shall direct and
supervise its administrative affairs and general management,
perform such other duties as may be prescribed from time to
time by the members, and receive compensation fixed by the
Authority. The Executive Director shall attend all meetings of
the Authority. However, no action of the Authority shall be
invalid on account of the absence of the Executive Director
from a meeting. The Authority may engage the services of the
Illinois Finance Authority, attorneys, appraisers, engineers,
accountants, credit analysts, and other consultants, if the
Southeastern Illinois Economic Development Authority deems it
advisable.
 
    Section 25. Duty. All official acts of the Authority shall
require the approval of at least 6 members. It shall be the
duty of the Authority to promote development within the
territorial jurisdiction of the Authority. The Authority shall
use the powers conferred upon it to assist in the development,
construction, and acquisition of industrial, commercial,
housing, or residential projects within those counties.
 
    Section 30. Powers.
    (a) The Authority possesses all the powers of a body
corporate necessary and convenient to accomplish the purposes
of this Act, including, without any intended limitation upon
the general powers hereby conferred, the following powers:
        (1) to enter into loans, contracts, agreements, and
    mortgages in any matter connected with any of its corporate
    purposes and to invest its funds;
        (2) to sue and be sued;
        (3) to utilize services of the Illinois Finance
    Authority;
        (4) to have and use a common seal and to alter the seal
    at its discretion;
        (5) to adopt all needful ordinances, resolutions,
    by-laws, rules, and regulations for the conduct of its
    business and affairs and for the management and use of the
    projects developed, constructed, acquired, and improved in
    furtherance of its purposes;
        (6) to own or finance communications projects such as
    telecommunications, fiber optics, and data transfer
    projects;
        (7) to designate the fiscal year for the Authority;
        (8) to accept and expend appropriations;
        (9) to acquire, own, lease, sell, or otherwise dispose
    of interests in and to real property and improvements
    situated on that real property and in personal property
    necessary to fulfill the purposes of the Authority;
        (10) to engage in any activity or operation which is
    incidental to and in furtherance of efficient operation to
    accomplish the Authority's primary purpose;
        (11) to acquire, own, construct, lease, operate, and
    maintain bridges, terminals, terminal facilities, and port
    facilities and to fix and collect just, reasonable, and
    nondiscriminatory charges for the use of such facilities.
    These charges shall be used to defray the reasonable
    expenses of the Authority and to pay the principal and
    interest of any revenue bonds issued by the Authority;
        (12) subject to any applicable condition imposed by
    this Act, to locate, establish and maintain a public
    airport, public airports and public airport facilities
    within its corporate limits or within or upon any body of
    water adjacent thereto and to construct, develop, expand,
    extend and improve any such airport or airport facility;
    and
        (13) to have and exercise all powers and be subject to
    all duties usually incident to boards of directors of
    corporations.
    (b) The Authority shall not issue any bonds relating to the
financing of a project located within the planning and
subdivision control jurisdiction of any municipality or county
unless notice, including a description of the proposed project
and the financing for that project, is submitted to the
corporate authorities of the municipality or, in the case of a
proposed project in an unincorporated area, to the county
board.
    (c) If any of the powers set forth in this Act are
exercised within the jurisdictional limits of any
municipality, all ordinances of the municipality remain in full
force and effect and are controlling.
 
    Section 35. Bonds.
    (a) The Authority, with the written approval of the
Governor, shall have the continuing power to issue bonds,
notes, or other evidences of indebtedness in an aggregate
amount not to exceed $250,000,000 for the following purposes:
(i) development, construction, acquisition, or improvement of
projects, including those established by business entities
locating or expanding property within the territorial
jurisdiction of the Authority; (ii) entering into venture
capital agreements with businesses locating or expanding
within the territorial jurisdiction of the Authority; (iii)
acquisition and improvement of any property necessary and
useful in connection therewith; and (iv) for the purposes of
the Employee Ownership Assistance Act. For the purpose of
evidencing the obligations of the Authority to repay any money
borrowed, the Authority may, pursuant to resolution, from time
to time, issue and dispose of its interest-bearing revenue
bonds, notes, or other evidences of indebtedness and may also
from time to time issue and dispose of such bonds, notes, or
other evidences of indebtedness to refund, at maturity, at a
redemption date or in advance of either, any bonds, notes, or
other evidences of indebtedness pursuant to redemption
provisions or at any time before maturity. All such bonds,
notes, or other evidences of indebtedness shall be payable
solely and only from the revenues or income to be derived from
loans made with respect to projects, from the leasing or sale
of the projects, or from any other funds available to the
Authority for such purposes. The bonds, notes, or other
evidences of indebtedness may bear such date or dates, may
mature at such time or times not exceeding 40 years from their
respective dates, may bear interest at such rate or rates not
exceeding the maximum rate permitted by the Bond Authorization
Act, may be in such form, may carry such registration
privileges, may be executed in such manner, may be payable at
such place or places, may be made subject to redemption in such
manner and upon such terms, with or without premium, as is
stated on the face thereof, may be authenticated in such manner
and may contain such terms and covenants as may be provided by
an applicable resolution.
    (b) The holder or holders of any bonds, notes, or other
evidences of indebtedness issued by the Authority may bring
suits at law or proceedings in equity to compel the performance
and observance by any corporation or person or by the Authority
or any of its agents or employees of any contract or covenant
made with the holders of the bonds, notes, or other evidences
of indebtedness, to compel such corporation, person, the
Authority, and any of its agents or employees to perform any
duties required to be performed for the benefit of the holders
of the bonds, notes, or other evidences of indebtedness by the
provision of the resolution authorizing their issuance and to
enjoin the corporation, person, the Authority, and any of its
agents or employees from taking any action in conflict with any
contract or covenant.
    (c) If the Authority fails to pay the principal of or
interest on any of the bonds or premium, if any, as the bond
becomes due, a civil action to compel payment may be instituted
in the appropriate circuit court by the holder or holders of
the bonds on which the default of payment exists or by an
indenture trustee acting on behalf of the holders. Delivery of
a summons and a copy of the complaint to the chairman of the
Board shall constitute sufficient service to give the circuit
court jurisdiction over the subject matter of the suit and
jurisdiction over the Authority and its officers named as
defendants for the purpose of compelling such payment. Any
case, controversy, or cause of action concerning the validity
of this Act relates to the revenue of the State of Illinois.
    (d) Notwithstanding the form and tenor of any bond, note,
or other evidence of indebtedness and in the absence of any
express recital on its face that it is non-negotiable, all such
bonds, notes, and other evidences of indebtedness shall be
negotiable instruments. Pending the preparation and execution
of any bonds, notes, or other evidences of indebtedness,
temporary bonds, notes, or evidences of indebtedness may be
issued as provided by ordinance.
    (e) To secure the payment of any or all of such bonds,
notes, or other evidences of indebtedness, the revenues to be
received by the Authority from a lease agreement or loan
agreement shall be pledged, and, for the purpose of setting
forth the covenants and undertakings of the Authority in
connection with the issuance of the bonds, notes, or other
evidences of indebtedness and the issuance of any additional
bonds, notes or other evidences of indebtedness payable from
such revenues, income, or other funds to be derived from
projects, the Authority may execute and deliver a mortgage or
trust agreement. A remedy for any breach or default of the
terms of any mortgage or trust agreement by the Authority may
be by mandamus proceeding in the appropriate circuit court to
compel performance and compliance under the terms of the
mortgage or trust agreement, but the trust agreement may
prescribe by whom or on whose behalf the action may be
instituted.
    (f) Bonds or notes shall be secured as provided in the
authorizing ordinance which may include, notwithstanding any
other provision of this Act, in addition to any other security,
a specific pledge, assignment of and lien on, or security
interest in any or all revenues or money of the Authority, from
whatever source, which may, by law, be used for debt service
purposes and a specific pledge, or assignment of and lien on,
or security interest in any funds or accounts established or
provided for by ordinance of the Authority authorizing the
issuance of the bonds or notes.
    (g) In the event that the Authority determines that moneys
of the Authority will not be sufficient for the payment of the
principal of and interest on its bonds during the next State
fiscal year, the chairman, as soon as practicable, shall
certify to the Governor the amount required by the Authority to
enable it to pay the principal of and interest on the bonds.
The Governor shall submit the certified amount to the General
Assembly as soon as practicable, but no later than the end of
the current State fiscal year. This Section shall not apply to
any bonds or notes to which the Authority determines, in the
resolution authorizing the issuance of the bonds or notes, that
this Section shall not apply. Whenever the Authority makes this
determination, it shall be plainly stated on the face of the
bonds or notes and the determination shall also be reported to
the Governor. In the event of a withdrawal of moneys from a
reserve fund established with respect to any issue or issues of
bonds of the Authority to pay principal or interest on those
bonds, the chairman of the Authority, as soon as practicable,
shall certify to the Governor the amount required to restore
the reserve fund to the level required in the resolution or
indenture securing those bonds. The Governor shall submit the
certified amount to the General Assembly as soon as
practicable, but no later than the end of the current State
fiscal year.
    (h) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Authority issued pursuant
to this Section that the State will not limit or alter the
rights and powers vested in the Authority by this Act so as to
impair the terms of any contract made by the Authority with the
holders of bonds or notes or in any way impair the rights and
remedies of those holders until the bonds and notes, together
with interest thereon, with interest on any unpaid installments
of interest, and all costs and expenses in connection with any
action or proceedings by or on behalf of the holders, are fully
met and discharged. In addition, the State pledges to and
agrees with the holders of the bonds and notes of the Authority
issued pursuant to this Section that the State will not limit
or alter the basis on which State funds are to be paid to the
Authority as provided in this Act, or the use of such funds, so
as to impair the terms of any such contract. The Authority is
authorized to include these pledges and agreements of the State
in any contract with the holders of bonds or notes issued
pursuant to this Section.
 
    Section 40. Bonds and notes; exemption from taxation. The
creation of the Authority is in all respects for the benefit of
the people of Illinois and for the improvement of their health,
safety, welfare, comfort, and security, and its purposes are
public purposes. In consideration thereof, the notes and bonds
of the Authority issued pursuant to this Act and the income
from these notes and bonds may be free from all taxation by the
State or its political subdivisions, exempt for estate,
transfer, and inheritance taxes. The exemption from taxation
provided by the preceding sentence shall apply to the income on
any notes or bonds of the Authority only if the Authority in
its sole judgment determines that the exemption enhances the
marketability of the bonds or notes or reduces the interest
rates that would otherwise be borne by the bonds or notes. For
purposes of Section 250 of the Illinois Income Tax Act, the
exemption of the Authority shall terminate after all of the
bonds have been paid. The amount of such income that shall be
added and then subtracted on the Illinois income tax return of
a taxpayer, subject to Section 203 of the Illinois Income Tax
Act, from federal adjusted gross income or federal taxable
income in computing Illinois base income shall be the interest
net of any bond premium amortization.
 
    Section 45. Acquisition.
    (a) The Authority may, but need not, acquire title to any
project with respect to which it exercises its authority.
    (b) The Authority shall have power to acquire by purchase,
lease, gift, or otherwise any property or rights therein from
any person or persons, the State of Illinois, any municipal
corporation, any local unit of government, the government of
the United States and any agency or instrumentality of the
United States, any body politic, or any county useful for its
purposes, whether improved for the purposes of any prospective
project or unimproved. The Authority may also accept any
donation of funds for its purposes from any of these sources.
    (c) The Authority shall have power to develop, construct,
and improve, either under its own direction or through
collaboration with any approved applicant, or to acquire,
through purchase or otherwise, any project, using for this
purpose the proceeds derived from its sale of revenue bonds,
notes, or other evidences of indebtedness or governmental loans
or grants and shall have the power to hold title to those
projects in the name of the Authority.
    (d) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
counties of Fayette, Cumberland, Clark, Effingham, Jasper,
Crawford, Marion, Clay, Richland, Lawrence, Jefferson, Wayne,
Edwards, Wabash, Hamilton, and White, the Illinois Development
Finance Authority, the Illinois Housing Development Authority,
the Illinois Education Facilities Authority, the Illinois Farm
Development Authority, the Rural Bond Bank, the United States
government and any agency or instrumentality of the United
States, any unit of local government located within the
territory of the Authority, or any other unit of government to
the extent allowed by Article VII, Section 10 of the Illinois
Constitution and the Intergovernmental Cooperation Act.
    (e) The Authority shall have the power to share employees
with other units of government, including agencies of the
United States, agencies of the State of Illinois, and agencies
or personnel of any unit of local government.
    (f) The Authority shall have the power to exercise powers
and issue bonds as if it were a municipality so authorized in
Divisions 12.1, 74, 74.1, 74.3, and 74.5 of Article 11 of the
Illinois Municipal Code.
 
    Section 50. Enterprise zones. The Authority may by
ordinance designate a portion of the territorial jurisdiction
of the Authority for certification as an Enterprise Zone under
the Illinois Enterprise Zone Act in addition to any other
enterprise zones which may be created under that Act, which
area shall have all the privileges and rights of an Enterprise
Zone pursuant to the Illinois Enterprise Zone Act, but which
shall not be counted in determining the number of Enterprise
Zones to be created in any year pursuant to that Act.
 
    Section 55. Designation of depository. The Authority shall
biennially designate a national or State bank or banks as
depositories of its money. Such depositories shall be
designated only within the State and upon condition that bonds
approved as to form and surety by the Authority and at least
equal in amount to the maximum sum expected to be on deposit at
any one time shall be first given by such depositories to the
Authority, such bonds to be conditioned for the safekeeping and
prompt repayment of such deposits. When any of the funds of the
Authority shall be deposited by the treasurer in any such
depository, the treasurer and the sureties on his official bond
shall, to such extent, be exempt from liability for the loss of
any such deposited funds by reason of the failure, bankruptcy,
or any other act or default of such depository; provided that
the Authority may accept assignments of collateral by any
depository of its funds to secure such deposits to the same
extent and conditioned in the same manner as assignments of
collateral are permitted by law to secure deposits of the funds
of any city.
 
    Section 60. Taxation prohibited. The Authority shall have
no right or authority to levy any tax or special assessment, to
pledge the credit of the State or any other subdivision or
municipal corporation thereof, or to incur any obligation
enforceable upon any property, either within or without the
territory of the Authority.
 
    Section 65. Fees. The Authority may collect fees and
charges in connection with its loans, commitments, and
servicing and may provide technical assistance in the
development of the region.
 
    Section 70. Reports and audit.
    (a) The Authority shall annually submit a report of its
finances to the Auditor General. The Authority shall annually
submit a report of its activities to the Governor and to the
General Assembly.
    (b) Beginning 5 years after the effective date of this Act
and every 5 years thereafter, the Auditor General shall conduct
a financial audit of the Authority.
 
    Section 99. The Illinois State Auditing Act is amended by
changing Section 3-1 as follows:
 
    (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
    Sec. 3-1. Jurisdiction of Auditor General. The Auditor
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act or
the Constitution.
    The Auditor General has jurisdiction over local government
agencies and private agencies only:
        (a) to make such post audits authorized by or under
    this Act as are necessary and incidental to a post audit of
    a State agency or of a program administered by a State
    agency involving public funds of the State, but this
    jurisdiction does not include any authority to review local
    governmental agencies in the obligation, receipt,
    expenditure or use of public funds of the State that are
    granted without limitation or condition imposed by law,
    other than the general limitation that such funds be used
    for public purposes;
        (b) to make investigations authorized by or under this
    Act or the Constitution; and
        (c) to make audits of the records of local government
    agencies to verify actual costs of state-mandated programs
    when directed to do so by the Legislative Audit Commission
    at the request of the State Board of Appeals under the
    State Mandates Act.
    In addition to the foregoing, the Auditor General may
conduct an audit of the Metropolitan Pier and Exposition
Authority, the Regional Transportation Authority, the Suburban
Bus Division, the Commuter Rail Division and the Chicago
Transit Authority and any other subsidized carrier when
authorized by the Legislative Audit Commission. Such audit may
be a financial, management or program audit, or any combination
thereof.
    The audit shall determine whether they are operating in
accordance with all applicable laws and regulations. Subject to
the limitations of this Act, the Legislative Audit Commission
may by resolution specify additional determinations to be
included in the scope of the audit.
    In addition to the foregoing, the Auditor General must also
conduct a financial audit of the Illinois Sports Facilities
Authority's expenditures of public funds in connection with the
reconstruction, renovation, remodeling, extension, or
improvement of all or substantially all of any existing
"facility", as that term is defined in the Illinois Sports
Facilities Authority Act.
    The Auditor General may also conduct an audit, when
authorized by the Legislative Audit Commission, of any hospital
which receives 10% or more of its gross revenues from payments
from the State of Illinois, Department of Public Aid, Medical
Assistance Program.
    The Auditor General is authorized to conduct financial and
compliance audits of the Illinois Distance Learning Foundation
and the Illinois Conservation Foundation.
    As soon as practical after the effective date of this
amendatory Act of 1995, the Auditor General shall conduct a
compliance and management audit of the City of Chicago and any
other entity with regard to the operation of Chicago O'Hare
International Airport, Chicago Midway Airport and Merrill C.
Meigs Field. The audit shall include, but not be limited to, an
examination of revenues, expenses, and transfers of funds;
purchasing and contracting policies and practices; staffing
levels; and hiring practices and procedures. When completed,
the audit required by this paragraph shall be distributed in
accordance with Section 3-14.
    The Auditor General shall conduct a financial and
compliance and program audit of distributions from the
Municipal Economic Development Fund during the immediately
preceding calendar year pursuant to Section 8-403.1 of the
Public Utilities Act at no cost to the city, village, or
incorporated town that received the distributions.
    The Auditor General must conduct an audit of the Health
Facilities Planning Board pursuant to Section 19.5 of the
Illinois Health Facilities Planning Act.
    The Auditor General of the State of Illinois shall annually
conduct or cause to be conducted a financial and compliance
audit of the books and records of any county water commission
organized pursuant to the Water Commission Act of 1985 and
shall file a copy of the report of that audit with the Governor
and the Legislative Audit Commission. The filed audit shall be
open to the public for inspection. The cost of the audit shall
be charged to the county water commission in accordance with
Section 6z-27 of the State Finance Act. The county water
commission shall make available to the Auditor General its
books and records and any other documentation, whether in the
possession of its trustees or other parties, necessary to
conduct the audit required. These audit requirements apply only
through July 1, 2007.
    The Auditor General must conduct audits of the Rend Lake
Conservancy District as provided in Section 25.5 of the River
Conservancy Districts Act.
    The Auditor General must conduct financial audits of the
Southeastern Illinois Economic Development Authority as
provided in Section 70 of the Southeastern Illinois Economic
Development Authority Act.
(Source: P.A. 93-226, eff. 7-22-03; 93-259, eff. 7-22-03;
93-275, eff. 7-22-03; revised 8-25-03.)
 
    Section 999. Effective date. This Act takes effect upon
becoming law.