Bill Amendment: IL SB1262 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: MUNI-COUNTY CDS TAX & REG

Status: 2016-01-29 - Public Act . . . . . . . . . 99-0499 [SB1262 Detail]

Download: Illinois-2015-SB1262-House_Amendment_002.html

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Rep. Rita Mayfield

Filed: 11/9/2015

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AMENDMENT TO SENATE BILL 1262
AMENDMENT NO. ______. Amend Senate Bill 1262, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 5. The Upper Illinois River Valley Development
Authority Act is amended by changing Sections 4 and 7 as
follows:
(70 ILCS 530/4) (from Ch. 85, par. 7154)
Sec. 4. Establishment.
(a) There is hereby created a political subdivision, body
politic and municipal corporation named the Upper Illinois
River Valley Development Authority. The territorial
jurisdiction of the Authority is that geographic area within
the boundaries of Grundy, LaSalle, Bureau, Putnam, Kendall,
Kane, Lake, McHenry, and Marshall counties in the State of
Illinois and any navigable waters and air space located

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therein.
(b) The governing and administrative powers of the
Authority shall be vested in a body consisting of 21 20 members
including, as ex officio members, the Director of Commerce and
Economic Opportunity, or his or her designee, and the Director
of the Department of Central Management Services, or his or her
designee. The other 19 18 members of the Authority shall be
designated "public members", 10 of whom shall be appointed by
the Governor with the advice and consent of the Senate and 9 8
of whom shall be appointed one each by the county board
chairmen of Grundy, LaSalle, Bureau, Putnam, Kendall, Kane,
Lake, McHenry, and Marshall counties. All public members shall
reside within the territorial jurisdiction of this Act. Eleven
members shall constitute a quorum. 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, small business management, real estate
development, community development, venture finance, organized
labor or civic, community or neighborhood organization. The
Chairman of the Authority shall be elected by the Board
annually from the 9 8 members appointed by the county board
chairmen.
(c) The terms of all initial members of the Authority shall
begin 30 days after the effective date of this Act. Of the 14
public members appointed pursuant to this Act, 4 appointed by
the Governor shall serve until the third Monday in January,

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1992, 4 appointed by the Governor shall serve until the third
Monday in January, 1993, one appointed by the Governor shall
serve until the third Monday in January, 1994, one appointed by
the Governor shall serve until the third Monday in January
1999, the member appointed by the county board chairman of
LaSalle County shall serve until the third Monday in January,
1992, the members appointed by the county board chairmen of
Grundy County, Bureau County, Putnam County, and Marshall
County shall serve until the third Monday in January, 1994, and
the member appointed by the county board chairman of Kendall
County shall serve until the third Monday in January, 1999. The
initial members appointed by the chairmen of the county boards
of Kane and McHenry counties shall serve until the third Monday
in January, 2003. The initial members appointed by the chairman
of the county board of Lake County shall serve until the third
Monday in January, 2018. All successors shall be appointed by
the original appointing authority and hold office for a term of
3 years commencing the third Monday in January of the year in
which their term commences, except in 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 such office, and any person so nominated who
is confirmed by the Senate shall hold office during the

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remainder of the term and until a successor shall be appointed
and qualified. Members of the Authority shall not be entitled
to compensation for their services as members but shall be
entitled to reimbursement for all necessary expenses incurred
in connection with the performance of their duties as members.
(d) The Governor may remove any public member of the
Authority in case of incompetency, neglect of duty, or
malfeasance in office.
(e) 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,
shall perform such other duties as may be prescribed from time
to time by the members and shall 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 such
other agents and employees, including attorneys, appraisers,
engineers, accountants, credit analysts and other consultants,
as it may deem advisable and may prescribe their duties and fix
their compensation.

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(f) The Board may, by majority vote, nominate up to 4
non-voting members for appointment by the Governor. Non-voting
members shall be persons of recognized ability and experience
in one or more of the following areas: economic development,
finance, banking, industrial development, small business
management, real estate development, community development,
venture finance, organized labor or civic, community or
neighborhood organization. Non-voting members shall serve at
the pleasure of the Board. All non-voting members may attend
meetings of the Board and shall be reimbursed as provided in
subsection (c).
(g) The Board shall create a task force to study and make
recommendations to the Board on the economic development of the
territory within the jurisdiction of this Act. The members of
the task force shall reside within the territorial jurisdiction
of this Act, shall serve at the pleasure of the Board and shall
be persons of recognized ability and experience in one or more
of the following areas: economic development, finance,
banking, industrial development, small business management,
real estate development, community development, venture
finance, organized labor or civic, community or neighborhood
organization. The number of members constituting the task force
shall be set by the Board and may vary from time to time. The
Board may set a specific date by which the task force is to
submit its final report and recommendations to the Board.
(Source: P.A. 94-793, eff. 5-19-06.)

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(70 ILCS 530/7) (from Ch. 85, par. 7157)
Sec. 7. 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 outstanding not to exceed $500,000,000 for the purpose
of developing, constructing, acquiring or improving projects,
including those established by business entities locating or
expanding property within the territorial jurisdiction of the
Authority, for entering into venture capital agreements with
businesses locating or expanding within the territorial
jurisdiction of the Authority, for acquiring and improving any
property necessary and useful in connection therewith and 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

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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 "An Act to authorize
public corporations to issue bonds, other evidences of
indebtedness and tax anticipation warrants subject to interest
rate limitations set forth therein", approved May 26, 1970, as
amended, 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-1) 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 such 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

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of any such bonds, notes or other evidences of indebtedness by
the provision of the resolution authorizing their issuance and
to enjoin such corporation, person, the Authority and any of
its agents or employees from taking any action in conflict with
any such contract or covenant.
(b-2) If the Authority fails to pay the principal of or
interest on any of the bonds or premium, if any, as the same
become 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 such default of payment exists or by an
indenture trustee acting on behalf of such 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 of the subject matter of such a 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.
(c) Notwithstanding the form and tenor of any such bonds,
notes or other evidences of indebtedness and in the absence of
any express recital on the face thereof 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 such bonds, notes or other
evidences of indebtedness, temporary bonds, notes or evidences
of indebtedness may be issued as provided by ordinance.

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(d) 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 thereof 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 such mortgage or trust agreement by the Authority
may be by mandamus proceedings in the appropriate circuit court
to compel the performance and compliance therewith, but the
trust agreement may prescribe by whom or on whose behalf such
action may be instituted.
(e) Such bonds or notes shall be secured as provided in the
authorizing ordinance which may, notwithstanding any other
provision of this Act, include in addition to any other
security a specific pledge or 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 such bonds or notes.
(f) (Blank). In the event that the Authority determines

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that monies 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 such principal of and
interest on the bonds. The Governor shall submit the amount so
certified 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 as to which the
Authority shall have determined, in the resolution authorizing
the issuance of the bonds or notes, that this Section shall not
apply. Whenever the Authority makes such a determination, that
fact shall be plainly stated on the face of the bonds or notes
and that fact 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
amount so certified to the General Assembly as soon as
practicable, but no later than the end of the current State
fiscal year. This subsection (f) shall not apply to any bond
issued on or after the effective date of this amendatory Act of
the 97th General Assembly.

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(g) 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
such holders or in any way impair the rights and remedies of
such holders until such 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 such 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.
(h) (Blank).
(Source: P.A. 97-312, eff. 8-11-11; 98-750, eff. 1-1-15.)
Section 99. Effective date. This Act takes effect upon
becoming law.".