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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0264
Introduced 1/23/2009, by Rep. David E. Miller SYNOPSIS AS INTRODUCED:
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New Act |
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20 ILCS 3501/825-13.5 new |
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Creates the Illinois Urban Development Authority Act. Creates the Illinois Urban Development Authority.
Provides
that the Authority shall be governed by an 11-member board. Requires the
Authority to make annual reports to certain entities. Sets forth the duties and powers of
the Authority. Sets forth the procedures by which the Authority may issue
bonds to specified entities. Amends the Illinois Finance Authority Act. Provides that the Illinois Finance Authority shall supervise the bond issuance of the Illinois Urban Development Authority. Contains other provisions.
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FISCAL NOTE ACT MAY APPLY | |
STATE DEBT IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| AN ACT concerning urban development.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the |
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| Illinois Urban Development Authority Act.
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| Section 2. Findings. The General Assembly hereby |
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| determines and declares that:
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| (1) the economic burdens resulting from involuntary |
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| unemployment fall in part upon the State in the form of |
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| increased need for public assistance, reduced tax |
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| revenues, and increased resources devoted to crime |
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| prevention and incarceration and that the unemployed |
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| worker and his or her family may migrate outside the State |
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| to find work and such migration will reduce the tax |
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| revenues of local governments and the State of Illinois, |
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| thereby endangering their financial ability to support |
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| necessary governmental services for their remaining |
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| inhabitants; |
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| (2) the State has a responsibility to help create a |
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| favorable climate for new and improved job opportunities |
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| for all of its citizens, especially in areas with high |
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| economic distress, by encouraging the development of |
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| commercial and service businesses and industrial and |
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| manufacturing plants and creating job opportunities; |
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| (3) the State has a responsibility to increase and |
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| improve post-release employment opportunities for |
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| ex-offenders and reduce recidivism rates through the |
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| combined resources and expertise of providers of workforce |
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| development, supportive services, and private enterprises; |
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| (4) a lack of decent housing contributes to urban |
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| blight, crime, anti-social behavior, disease, a higher |
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| need for public assistance, reduced tax revenues, and the |
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| migration of workers and their families away from areas |
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| that fail to offer adequate, decent, affordable housing; |
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| (5) decent, affordable housing is a necessary |
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| ingredient of life affording each citizen basic human |
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| dignity, a sense of self worth, confidence, and a firm |
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| foundation upon which to build a family and educate |
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| children; and |
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| (6) in order to foster civic and neighborhood pride, |
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| citizens require access to educational institutions, |
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| recreation, parks and open spaces, entertainment and |
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| sports, a reliable transportation network, cultural |
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| facilities, and theaters.
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| It is hereby declared to be the policy of the State of |
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| Illinois, in the interest of promoting industrial, commercial, |
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| residential, jobs, service, transportation, and facilities, |
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| thereby reducing the evils attendant upon unemployment, crime, |
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| and recidivism and enhancing the public health, safety, morals, |
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LRB096 03466 RLJ 13490 b |
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| happiness, and general welfare of this State specifically by |
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| making available through the Illinois Urban Development |
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| Authority, funds for industrial projects, commercial projects, |
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| and housing projects to a municipality with a municipal poverty |
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| rate greater than 3% in excess of the statewide average.
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| Section 3. Definitions. The following terms, whenever used |
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| or referred to in this Act, shall have the following meanings, |
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| except in such instances where the context may clearly indicate |
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| otherwise: |
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| "Authority" means the Illinois Urban Development Authority |
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| created by this Act.
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| "Board" means the Illinois Urban Development Authority |
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| Board of Directors. |
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| "Bonds" shall include bonds, notes, or other evidence of |
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| indebtedness. |
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| "Commercial project" means any project, including but not |
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| limited to one or more buildings and other structures, |
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| improvements, machinery, and equipment whether or not on the |
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| same site or sites now existing or hereafter acquired, suitable |
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| for use by any retail or wholesale concern, distributorship, or |
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| agency, any cultural facilities of a for-profit or |
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| not-for-profit type including but not limited to educational, |
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| theatrical, recreational and entertainment, sports facilities, |
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| racetracks, stadiums, convention centers, exhibition halls, |
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| arenas, opera houses and theaters, waterfront improvements, |
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LRB096 03466 RLJ 13490 b |
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| swimming pools, boat storage, moorage, docking facilities, |
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| restaurants, coliseums, sports training facilities, parking |
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| facilities, terminals, hotels and motels, gymnasiums, medical |
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| facilities, and port facilities. |
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| "Costs incurred in connection with the development, |
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| construction, acquisition, or improvement of a project" means |
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| the cost of purchase and construction of all lands and |
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| improvements in connection with a project and equipment and |
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| other property, rights, easements, and franchises acquired |
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| that are deemed necessary for such construction; financing |
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| charges; interest costs with respect to bonds, notes, and other |
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| evidences of indebtedness of the Authority prior to and during |
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| construction and for a period of 6 months thereafter; |
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| engineering and legal expenses; the costs of plans, |
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| specifications, surveys, and estimates of costs and other |
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| expenses necessary or incident to determining the feasibility |
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| or practicability of any project, together with such other |
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| expenses as may be necessary or incident to the financing, |
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| insuring, acquisition, and construction of a specific project |
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| and the placing of the same in operation. |
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| "Financial aid" means the expenditure of Authority funds or |
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| funds provided by the Authority through the issuance of its |
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| revenue bonds, notes, or other evidences of indebtedness for |
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| the development, construction, acquisition, or improvement of |
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| a project. |
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| "Governmental agency" means any federal, State or local |
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LRB096 03466 RLJ 13490 b |
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| governmental body, and any agency or instrumentality thereof, |
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| corporate or otherwise.
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| "Governor" means the Governor of the State of Illinois. |
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| "Housing project" or "residential project" includes a |
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| specific work or improvement undertaken to provide dwelling |
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| accommodations, including the acquisition, construction, |
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| leasing, or rehabilitation of lands, buildings, and community |
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| facilities and in connection therewith to provide nonhousing |
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| facilities which are an integral part of a planned large-scale |
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| project or new community. |
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| "Industrial project" means (1) a capital project, |
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| including one or more buildings and other structures, |
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| improvements, machinery, and equipment whether or not on the |
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| same site or sites now existing or hereafter acquired, suitable |
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| for use by any manufacturing, industrial, research, |
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| transportation, or commercial enterprise including but not |
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| limited to use as a factory, mill, processing plant, assembly |
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| plant, packaging plant, fabricating plant, office building, |
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| industrial distribution center, warehouse, repair, overhaul or |
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| service facility, freight terminal, research facility, test |
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| facility, railroad facility, solid waste and wastewater |
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| treatment and disposal sites and other pollution control |
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| facilities, resource or waste reduction, recovery, treatment |
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| and disposal facilities, and including also the sites thereof |
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| and other rights in land therefor whether improved or |
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| unimproved, site preparation and landscaping and all |
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LRB096 03466 RLJ 13490 b |
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| appurtenances and facilities incidental thereto such as |
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| utilities, access roads, railroad sidings, truck docking and |
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| similar facilities, parking facilities, dockage, wharfage, |
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| railroad roadbed, track, trestle, depot, terminal, switching, |
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| and signaling equipment or related equipment and other |
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| improvements necessary or convenient thereto; or (2) any land, |
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| buildings, machinery or equipment comprising an addition to or |
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| renovation, rehabilitation or improvement of any existing |
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| capital project. |
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| "Lease agreement" means an agreement whereby a project |
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| acquired by the Authority by purchase, gift, or lease is leased |
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| to any person or corporation that will use or cause the project |
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| to be used as a project as defined in this Act upon terms |
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| providing for lease rental payments at least sufficient to pay |
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| when due all principal of and interest and premium, if any, on |
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| any bonds, notes or other evidences of indebtedness of the |
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| Authority issued with respect to such project, providing for |
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| the maintenance, insurance, and operation of the project on |
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| terms satisfactory to the Authority, and providing for |
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| disposition of the project upon termination of the lease term, |
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| including purchase options or abandonment of the premises, with |
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| such other terms as may be deemed desirable by the Authority. |
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| The Authority may, directly or indirectly, lease or otherwise |
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| transfer property the Authority owns to another and such leased |
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| property shall remain tax exempt. |
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| "Loan agreement" means any agreement pursuant to which the |
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| Authority agrees to loan the proceeds of its bonds, notes, or |
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| other evidences of indebtedness issued with respect to a |
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| project to any person or corporation that will use or cause the |
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| project to be used as a project as defined in this Act upon |
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| terms providing for loan repayment installments at least |
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| sufficient to pay when due all principal and interest and |
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| premium, if any, on any bonds, notes, or other evidences of |
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| indebtedness of the Authority issued with respect to the |
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| project, providing for maintenance, insurance, and operation |
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| of the project on terms satisfactory to the Authority and |
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| providing for other matters as may be deemed advisable by the |
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| Authority. |
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| "Municipal poverty rate" is the percentage of total |
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| population of the municipality having income levels below the |
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| poverty level as determined by the Authority based upon the |
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| most recent data released by the United States Census Bureau |
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| before the beginning of such calendar year.
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| "Occupational license" means a license issued by the |
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| Illinois Gaming Board to a person or entity to perform an |
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| occupation which the Illinois Gaming Board has identified as |
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| requiring a license to engage in riverboat, dockside, or |
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| land-based gambling in Illinois. |
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| "Person" means any natural person, firm, partnership, |
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| corporation, both domestic and foreign, company, association, |
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| or joint stock association and includes any trustee, receiver, |
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| assignee, or personal representative thereof.
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| "Project" means an industrial, housing, residential, |
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| commercial, or service project, or any combination thereof, |
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| provided that all uses shall fall within one of those |
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| categories. Any project, of any nature whatsoever, shall |
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| automatically include all site improvements and new |
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| construction involving sidewalks, sewers, solid waste and |
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| wastewater treatment and disposal sites and other pollution |
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| control facilities, resource or waste reduction, recovery, |
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| treatment and disposal facilities, parks, open spaces, |
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| wildlife sanctuaries, streets, highways, and runways. |
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| "Revenue bond" means any bond issued by the Authority under |
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| the supervision of the Illinois Finance Authority, the |
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| principal and interest of which are payable solely from |
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| revenues or income derived from any project or activity of the |
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| Authority.
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| Section 4. Illinois Urban Development Authority. There is |
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| hereby created a political subdivision, body politic and |
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| corporate by the name of Illinois Urban Development Authority. |
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| The exercise by the Authority of the powers conferred by law |
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| shall be an essential public function. The governing powers of |
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| the Authority shall be vested in a body consisting of 11 |
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| members appointed as follows: one member appointed by the Mayor |
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| of the City of Chicago; one member appointed by the President |
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| of the Cook County Board; 4 members appointed by the Governor |
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| who are residents of a municipality, other than a municipality |
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| with a population greater than 1,000,000, whose municipal |
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| poverty rate is greater than 3% in excess of the statewide |
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| average; 2 members appointed by the Governor that have an |
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| expertise, skill, and experience in labor relations; and 3 |
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| members appointed by the Governor that have an expertise, |
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| skill, and experience operating a business that is certified by |
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| the State of Illinois as a Disadvantaged Business Enterprise, |
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| Minority Business Enterprise, or Women Business Enterprise. |
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| Six members shall constitute a quorum. However, when a |
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| quorum of members of the Authority is physically present at the |
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| meeting site, other Authority members may participate in and |
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| act at any meeting through the use of a conference telephone or |
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| other communications equipment by means of which all persons |
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| participating in the meeting can hear each other. Participation |
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| in such meeting shall constitute attendance and presence in |
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| person at the meeting of the person or persons so |
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| participating. The Chairman of the Authority shall be elected |
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| by the Authority. All board members shall be persons of |
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| recognized ability and experience in one or more of the |
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| following areas: economic development, finance, banking, |
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| industrial development, small business management, real estate |
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| development, community development, venture finance, |
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| construction, and labor relations. |
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| The terms of all members of the Authority shall begin 30 |
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| days after the effective date of this Act. Of the 11 members |
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| first appointed pursuant to this Act, 4 shall serve until the |
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| third Monday in January 2011, 4 shall serve until the third |
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| Monday in January 2012, and 3 shall serve until the third |
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| Monday in January 2013. All board members shall hold office for |
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| a term of 4 years commencing the third Monday in January of the |
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| year in which their term commences, except in case of an |
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| appointment to fill a vacancy. In case of vacancy in the office |
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| when the Senate is not in session, the Governor may make a |
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| temporary appointment until the next meeting of the Senate when |
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| he shall nominate such person to fill such office, and any |
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| person so nominated who is confirmed by the Senate, shall hold |
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| his office during the remainder of the term and until his |
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| successor shall be appointed and qualified. If the Senate is |
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| not in session, the Governor may make temporary appointments in |
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| the case of vacancies. |
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| Members of the Authority shall not be entitled to |
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| compensation for their
services
as members but shall be |
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| entitled to reimbursement for all necessary expenses
incurred |
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| in
connection with the performance of their duties as members. |
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| The Governor may
remove
any member of the Authority in case of |
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| incompetency, neglect of duty, or
malfeasance in office, after |
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| service on the member of a copy of the written
charges
against |
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| the member and an opportunity to be publicly heard in person or |
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| by
counsel in
the his or her defense upon not less than 10 |
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| days' notice.
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| The members of the Authority shall appoint an Executive |
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| Director, who must be
a
person knowledgeable in the areas of |
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| financial markets and instruments and the
financing
of business |
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| enterprises, to hold office at the pleasure of the members. The
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| Executive
Director shall be the chief administrative and |
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| operational officer of the
Authority and
shall direct and |
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| supervise its administrative affairs and general management
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| and perform
such other duties as may be prescribed from time to |
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| time by the members and
shall
receive compensation fixed by the |
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| Authority. The Executive Director or any
committee of the |
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| members may carry out any responsibilities of the members as
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| the
members by resolution may delegate. The Executive Director |
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| shall attend all
meetings of the Authority; however, no action |
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| of the Authority shall be invalid on
account of the absence of |
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| the Executive Director from a meeting. The Authority may
engage |
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| the services of such other agents and employees, including |
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| attorneys, appraisers,
engineers, accountants, credit |
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| analysts, and other consultants, as it may deem
advisable
and |
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| may prescribe their duties and fix their compensation.
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| The Authority shall determine the municipal poverty rate |
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| and the statewide
average municipal poverty rate annually by |
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| using the most recent data released
by the
United States Census |
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| Bureau before the beginning of each calendar year. The
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| Authority
shall have the sole and exclusive authority to |
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| determine the municipal poverty
rate and
the statewide average |
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| municipal poverty rate and to determine whether a
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| municipality's
poverty rate is greater than 3% in excess of the |
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| statewide average so long as
the
determination is based on the |
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| most recent data released by the United States
Census
Bureau.
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| Section 5. Conflicts of interest.
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| (a) No member of the Authority or officer, agent, or |
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| employee thereof
shall, in the member's own name or in the name |
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| of a nominee, be an officer,
director, or
hold an ownership |
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| interest of more than 7.5% in any person, association, trust,
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| corporation, partnership, or other entity which is, in its own |
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| name or in the
name of a
nominee, a party to a contract or |
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| agreement upon which the member or officer,
agent
or employee |
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| may be called upon to act or vote.
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| (b) With respect to any direct or any indirect interest, |
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| other than an
interest
prohibited in subsection (a), in a |
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| contract or agreement upon which the member
or
officer, agent |
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| or employee may be called upon to act or vote, a member of the
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| Authority
or officer, agent, or employee thereof must disclose |
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| the interest to the
secretary
of the
Authority prior to the |
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| taking of final action by the Authority concerning the
contract |
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| or agreement and shall disclose the nature and extent of the
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| interest and his or her acquisition thereof, which shall be |
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| publicly
acknowledged by the Authority and entered upon the |
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| minutes of the Authority. If
a member of the Authority or |
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| officer, agent, or employee thereof holds such an
interest then |
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| the member shall refrain from any further official involvement |
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| in
regard to the contract or agreement, from voting on any |
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| matter pertaining to
the contract or agreement, and from |
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| communicating with other members of the
Authority or its |
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| officers, agents, and employees concerning the
contract or |
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| agreement. Notwithstanding any other provision of law, any |
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| contract
or agreement entered into in conformity with this |
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| subsection shall not be
void or
invalid by reason of the |
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| interest described in this subsection, nor shall any
person
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| disclosing an interest and refraining from further official |
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| involvement as
provided in this subsection be guilty of an |
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| offense, be removed from office, or
be subject
to any other |
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| penalty on account of the interest.
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| (c) Any contract or agreement made in violation of |
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| subsections (a) or (b)
shall be null and void, whether or not |
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| the contract performance
has been authorized, and shall give |
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| rise to no action against the Authority. No
real
estate to |
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| which a member or employee of the Authority holds legal title |
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| or in
which a member or employee of the Authority has
any |
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| beneficial interest, including any interest in a land trust, |
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| shall be
purchased by the
Authority or by a nonprofit |
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| corporation or limited-profit entity for a
development
to be |
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| financed under this Act.
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| All members and employees of the Authority shall file |
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| annually with the
Authority a record of all real estate in this |
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| State to which the member or
employee holds
legal title or
in |
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| which the member or employee has any beneficial interest, |
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| including any
interest in a
land trust.
In the event it is |
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| later disclosed that the Authority has purchased real
estate in |
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LRB096 03466 RLJ 13490 b |
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| which a
member or employee had an interest, that purchase shall |
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| be voidable by the
Authority
and the member or employee |
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| involved shall be disqualified from membership in or
employment |
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| by the Authority.
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| Section 6. Records and reports of the Authority. The |
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| secretary shall keep a
record of the proceedings of the |
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| Authority. The treasurer of the Authority
shall be
custodian of |
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| all Authority funds, and shall be bonded in such amount as the
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| other
members of the Authority may designate. The accounts and |
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| bonds of the Authority
shall
be set up and maintained in a |
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| manner approved by the Auditor General, and the
Authority
shall |
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| file with the Auditor General a certified annual report within |
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| 120 days
after the
close of its fiscal year. The Authority |
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| shall also file with the Governor, the
Secretary of
the Senate, |
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| the Clerk of the House of Representatives, and the Legislative |
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| Research Unit, by March 1 of each year, a written report
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| covering
its activities and any activities of any |
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| instrumentality corporation
established under
this Act for the |
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| previous fiscal year. In its report to be filed by March 1,
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| 2010, the
Authority shall present an economic development |
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| strategy for all municipalities
with a
municipal poverty rate |
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| greater than 3% in excess of the Statewide average, the
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| Authority
shall make modifications in the economic development |
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| strategy for the 4 years
beginning on the next ensuing July 1, |
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| to reflect changes in economic conditions
or
other factors, |
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HB0264 |
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LRB096 03466 RLJ 13490 b |
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| including the policies of the Authority and the State of
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| Illinois. It
shall also present an economic development |
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| strategy for the fifth year
beginning after the
next ensuing |
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| July 1. The strategy shall recommend specific legislative and
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| administrative action by the State, the Authority, units of |
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| local government,
or
other governmental agencies. These |
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| recommendations may include, but are not
limited to, new |
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| programs, modifications to existing programs, credit
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| enhancements for bonds issued by the Authority, and amendments |
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| to this Act.
When filed, the report shall be a public record |
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| and open for inspection at the
offices of the Authority during |
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| normal business hours.
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| Section 7. Approval of official acts. All official acts of |
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| the Authority
shall require the approval of
at least 6 members.
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| Section 8. Powers of the Authority.
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| (a) The Authority possesses all the powers of a body |
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| corporate necessary
and convenient to accomplish the purposes |
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| of this Act, including, without
limitation,
except as defined |
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| in Section 9.1 of the Act, the following:
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20 |
| (1) To enter into loans, contracts, agreements, and |
21 |
| mortgages in any
matter
connected with any of its corporate |
22 |
| purposes and to invest its funds.
|
23 |
| (2) To sue and be sued.
|
24 |
| (3) To employ agents and employees necessary to carry |
|
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LRB096 03466 RLJ 13490 b |
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| out its
purposes.
|
2 |
| (4) To have and use a common seal and to alter the same |
3 |
| at its
discretion.
|
4 |
| (5) To adopt all needful ordinances, resolutions, |
5 |
| by-laws, rules, and
regulations for the conduct of its |
6 |
| business and affairs and for the management
and
use of the |
7 |
| projects developed, constructed, acquired, and improved in
|
8 |
| furtherance
of its purposes.
|
9 |
| (6) To designate the fiscal year for the Authority.
|
10 |
| (7) To accept and expend appropriations.
|
11 |
| (8) To maintain an office or offices at such place as |
12 |
| the Authority may
designate.
|
13 |
| (9) To employ, either as regular employees or as |
14 |
| independent
contractors, such consultants, engineers, |
15 |
| architects, accountants, attorneys,
financial experts, |
16 |
| construction experts and personnel, superintendents,
|
17 |
| managers, and other professional personnel as may be |
18 |
| necessary in the judgment
of the Authority and to fix their |
19 |
| compensation.
|
20 |
| (10) To acquire, hold, lease, use, encumber, transfer, |
21 |
| or dispose of real
and personal property.
|
22 |
| (11) To enter into contracts of any kind and execute |
23 |
| all instruments
necessary or convenient with respect to its |
24 |
| carrying out the powers in this Act
to
accomplish the |
25 |
| purposes of the Authority.
|
26 |
| (12) To fix and revise from time to time and to charge |
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LRB096 03466 RLJ 13490 b |
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| and collect rates,
rents, fees, or other charges for the |
2 |
| use of facilities or for services
rendered in
connection |
3 |
| with the facilities.
|
4 |
| (13) To borrow money from any source for any corporate |
5 |
| purpose,
including working capital for its operations, |
6 |
| reserve funds, or the payment of
interest, to mortgage, |
7 |
| pledge, or otherwise encumber the property or funds of
the |
8 |
| Authority, and to contract with or engage the services of |
9 |
| any person in
connection with any financing, including |
10 |
| financial institutions, issuers of
letters of credit, or |
11 |
| insurers.
|
12 |
| (14) To borrow money and issue revenue bonds, notes, or |
13 |
| other evidences of indebtedness under the supervision of |
14 |
| the Illinois Finance Authority, as set forth under Section |
15 |
| 825-13.5 of the Illinois Finance Authority Act.
|
16 |
| (15) To receive and accept from any source, private or |
17 |
| public,
contributions, gifts, or grants of money or |
18 |
| property.
|
19 |
| (16) To make loans from proceeds or funds otherwise |
20 |
| available to the
extent necessary or appropriate to |
21 |
| accomplish the purposes of the Authority.
|
22 |
| (17) To exercise all the corporate powers granted to |
23 |
| Illinois
corporations under the Business Corporation Act |
24 |
| of 1983, except to the extent
that any of these powers are |
25 |
| inconsistent with those of a body politic and
corporate of |
26 |
| the State.
|
|
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LRB096 03466 RLJ 13490 b |
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| (18) To have and exercise all powers and be subject to |
2 |
| all duties usually
incident to boards of directors of |
3 |
| corporations.
|
4 |
| (19) To enter into intergovernmental agreements with |
5 |
| the State of Illinois and the Illinois Finance Authority. |
6 |
| (20) To do all things necessary or convenient to carry |
7 |
| out the powers
granted by this Act.
|
8 |
| (b) The Authority shall not issue any bonds relating to the |
9 |
| financing of a
project located within the planning and |
10 |
| subdivision control jurisdiction of any
municipality or county |
11 |
| unless notice, including a description of the proposed
project |
12 |
| and the financing therefor, is submitted to the corporate |
13 |
| authorities
of the
municipality or, in the case of a proposed |
14 |
| project in an unincorporated area,
to the county
board.
|
15 |
| (c) If any of the powers set forth in this Act are |
16 |
| exercised within the
jurisdictional limits of any |
17 |
| municipality, all ordinances of the municipality
shall remain
|
18 |
| in full force and effect and shall be controlling.
|
19 |
| Section 9. Revenue bonds.
|
20 |
| (a) The Authority shall have the continuing power to issue |
21 |
| revenue bonds, notes, or other evidences of indebtedness in an |
22 |
| aggregate amount not to exceed $500,000,000 for the purpose of |
23 |
| developing, constructing, acquiring, or improving projects, |
24 |
| including those established by business entities locating or |
25 |
| expanding property within the territorial jurisdiction of the |
|
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| Authority, for entering into venture capital agreements with |
2 |
| businesses locating or expanding within the territorial |
3 |
| jurisdiction of the Authority, for acquiring and improving any |
4 |
| property necessary and useful in connection therewith, and for |
5 |
| the purposes of the Employee Ownership Assistance Act. The |
6 |
| bonds must be issued under the supervision of the Illinois |
7 |
| Finance Authority, as set forth under Section 825-13.5 of the |
8 |
| Illinois Finance Authority Act. For the purpose of evidencing |
9 |
| the obligations of the Authority to repay any money borrowed, |
10 |
| the Authority may, pursuant to resolution, from time to time |
11 |
| issue and dispose of its interest bearing revenue bonds, notes, |
12 |
| or other evidences of indebtedness and may also from time to |
13 |
| time issue and dispose of such bonds, notes, or other evidences |
14 |
| of indebtedness to refund, at maturity, at a redemption date or |
15 |
| in advance of either, any revenue bonds, notes, or other |
16 |
| evidences of indebtedness pursuant to redemption provisions or |
17 |
| at any time before maturity. All such revenue bonds, notes, or |
18 |
| other evidences of indebtedness shall be payable solely from |
19 |
| the revenues or income to be derived from loans made with |
20 |
| respect to projects, from the leasing or sale of the projects, |
21 |
| or from any other funds available to the Authority for such |
22 |
| purposes, including, when so provided by ordinance of the |
23 |
| Authority authorizing the issuance of revenue bonds or notes. |
24 |
| The revenue bonds, notes, or other evidences of indebtedness |
25 |
| may bear such date or dates, may mature at such time or times |
26 |
| not exceeding 35 years from their respective dates, may bear |
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LRB096 03466 RLJ 13490 b |
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| interest at such rate or rates not exceeding the maximum rate |
2 |
| permitted by the Bond Authorization Act, may be in such form, |
3 |
| may carry such registration privileges, may be executed in such |
4 |
| manner, may be payable at such place or places, may be made |
5 |
| subject to redemption in such manner and upon such terms, with |
6 |
| or without premium as is stated on the face thereof, may be |
7 |
| authenticated in such manner, and may contain such terms and |
8 |
| covenants as may be provided by an applicable resolution. |
9 |
| (b) The holder or holders of any revenue bonds, notes, or |
10 |
| other evidences of indebtedness issued by the Authority may |
11 |
| bring suits at law or proceedings in equity to compel the |
12 |
| performance and observance by any corporation or person or by |
13 |
| the Authority or any of its agents or employees of any contract |
14 |
| or covenant made with the holders of such revenue bonds, notes, |
15 |
| or other evidences of indebtedness, to compel such corporation, |
16 |
| person, the Authority, and any of its agents or employees to |
17 |
| perform any duties required to be performed for the benefit of |
18 |
| the holders of any such revenue bonds, notes, or other |
19 |
| evidences of indebtedness by the provision of the resolution |
20 |
| authorizing their issuance and to enjoin such corporation, |
21 |
| person, the Authority, and any of its agents or employees from |
22 |
| taking any action in conflict with any such contract or |
23 |
| covenant. |
24 |
| (c) If the Authority fails to pay the principal of or |
25 |
| interest on any of the revenue bonds or premium, if any, as the |
26 |
| same become due, a civil action to compel payment may be |
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| instituted in the appropriate circuit court by the holder or |
2 |
| holders of the revenue bonds on which such default of payment |
3 |
| exists or by an indenture trustee acting on behalf of such |
4 |
| holders. Delivery of a summons and a copy of the complaint to |
5 |
| the Chairperson of the Board shall constitute sufficient |
6 |
| service to give the circuit court jurisdiction of the subject |
7 |
| matter of such a suit and jurisdiction over the Authority and |
8 |
| its officers named as defendants for the purpose of compelling |
9 |
| such payment. Any case, controversy, or cause of action |
10 |
| concerning the validity of this Act relates to the revenue of |
11 |
| the State of Illinois. |
12 |
| (d) Notwithstanding the form and tenor of any such revenue |
13 |
| bonds, notes, or other evidences of indebtedness and in the |
14 |
| absence of any express recital on the face of any such revenue |
15 |
| bond, note, or other evidence of indebtedness that it is |
16 |
| nonnegotiable, all such revenue bonds, notes, and other |
17 |
| evidences of indebtedness shall be negotiable instruments. |
18 |
| Pending the preparation and execution of any such revenue |
19 |
| bonds, notes, or other evidences of indebtedness, temporary |
20 |
| revenue bonds, notes, or evidences of indebtedness may be |
21 |
| issued as provided by ordinance. |
22 |
| (e) To secure the payment of any or all of such revenue |
23 |
| bonds, notes, or other evidences of indebtedness, the revenues |
24 |
| to be received by the Authority from a lease agreement or loan |
25 |
| agreement shall be pledged, and, for the purpose of setting |
26 |
| forth the covenants and undertakings of the Authority in |
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| connection with the issuance thereof and the issuance of any |
2 |
| additional revenue bonds, notes, or other evidences of |
3 |
| indebtedness payable from such revenues, income, or other funds |
4 |
| to be derived from projects, the Authority may execute and |
5 |
| deliver a mortgage or trust agreement. A remedy for any breach |
6 |
| or default of the terms of any such mortgage or trust agreement |
7 |
| by the Authority may be by mandamus proceedings in the |
8 |
| appropriate circuit court to compel the performance and |
9 |
| compliance therewith, but the trust agreement may prescribe by |
10 |
| whom or on whose behalf the action may be instituted. |
11 |
| (f) The revenue bonds or notes shall be secured as provided |
12 |
| in the authorizing ordinance which may, notwithstanding any |
13 |
| other provision of this Act, include in addition to any other |
14 |
| security a specific pledge or assignment of and lien on or |
15 |
| security interest in any or all revenues or money of the |
16 |
| Authority from whatever source which may by law be used for |
17 |
| debt service purposes and a specific pledge or assignment of |
18 |
| and lien on or security interest in any funds or accounts |
19 |
| established or provided for by ordinance of the Authority |
20 |
| authorizing the issuance of such revenue bonds or notes. |
21 |
| (g) The State of Illinois pledges to and agrees with the |
22 |
| holders of the revenue bonds and notes of the Authority issued |
23 |
| pursuant to this Section that the State will not limit or alter |
24 |
| the rights and powers vested in the Authority by this Act so as |
25 |
| to impair the terms of any contract made by the Authority with |
26 |
| such holders or in any way impair the rights and remedies of |
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| such holders until such revenue bonds and notes, together with |
2 |
| interest thereon, with interest on any unpaid installments of |
3 |
| interest, and all costs and expenses in connection with any |
4 |
| action or proceedings by or on behalf of such holders, are |
5 |
| fully met and discharged. The Authority is authorized to |
6 |
| include these pledges and agreements of the State in any |
7 |
| contract with the holders of revenue bonds or notes issued |
8 |
| pursuant to this Section. |
9 |
| (h) Under no circumstances shall any bonds issued by the |
10 |
| Authority or any other obligation of the Authority be or become |
11 |
| an indebtedness or obligation of the State of Illinois or of |
12 |
| any other political subdivision of or municipality within the |
13 |
| State, nor shall any such bond or obligation be or become an |
14 |
| indebtedness of the Authority within the purview of any |
15 |
| constitutional limitation or provision, and it shall be plainly |
16 |
| stated on the face of each bond that it does not constitute |
17 |
| such an indebtedness or obligation but is payable solely from |
18 |
| the revenues or income as aforesaid. |
19 |
| (i) For the purpose of financing a project pursuant to this |
20 |
| Act, the Authority shall be authorized to apply for an |
21 |
| allocation of tax-exempt bond financing authorization provided |
22 |
| by Section 11143 of the Safe, Accountable, Flexible, Efficient |
23 |
| Transportation Equity Act: A Legacy for Users (SAFETEA-LU), |
24 |
| Public Law 109-59, as well as financing available under any |
25 |
| other federal law or program.
|
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| Section 9.1. Limitation.
|
2 |
| (a) The Authority may issue its bonds or notes (including |
3 |
| refunding bond or
notes) only if the financed project is |
4 |
| situated within the territorial
jurisdiction of a
municipality |
5 |
| with a municipal poverty rate greater than 3% in excess of the
|
6 |
| statewide
average.
|
7 |
| (b) If a project is situated in 2 or more municipalities |
8 |
| where one
municipality
has a municipal poverty rate greater |
9 |
| than 3% in excess of the Statewide average
and the
other does |
10 |
| not, the project shall be deemed to be within the municipality |
11 |
| with
a
municipal
poverty rate greater than 3% in excess of the |
12 |
| Statewide average.
|
13 |
| Section 10. Legality for investment. Any financial |
14 |
| institution, investment
company, insurance company, or |
15 |
| association and any personal representative,
guardian,
|
16 |
| trustee, or other fiduciary, may legally invest any moneys |
17 |
| belonging to them or
within
their control in any bonds issued |
18 |
| by the Authority.
|
19 |
| Section 11. Tax exemption. The Authority shall not be |
20 |
| required to pay any
taxes
or assessments of any kind whatsoever |
21 |
| and its bonds, their transfer, the
interest payable
on them, |
22 |
| and any income derived from them shall be exempt at the time of
|
23 |
| issuance and
at all times from every kind and nature of |
24 |
| taxation by this State or by any of
its political
subdivisions, |
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| municipal corporations, or public agencies of any kind, except
|
2 |
| for estate,
transfer, and inheritance taxes as provided in |
3 |
| Section 12.
|
4 |
| For purposes of Section 250 of the Illinois Income Tax Act, |
5 |
| the exemption of
the income from bonds issued by the Authority |
6 |
| shall terminate after all of the
bonds have been paid. The |
7 |
| amount of such income that shall be added and then
subtracted |
8 |
| on the Illinois income tax return of a taxpayer, under Section |
9 |
| 203
of the Illinois Income Tax Act, from federal adjusted gross |
10 |
| income or federal
taxable
income in computing Illinois base |
11 |
| income shall be the interest net of any bond
premium
|
12 |
| amortization.
|
13 |
| Section 12. Additional powers and duties.
|
14 |
| (a) The Authority may, but need not, acquire title to any |
15 |
| project with
respect
to which it exercises its authority.
|
16 |
| (b) The Authority shall have the power to enter into |
17 |
| intergovernmental
agreements with the State of Illinois, the |
18 |
| United States government and any
agency or
instrumentality of |
19 |
| the United States, any unit of local government, or any
other |
20 |
| unit
of government to the extent allowed by Article VII, |
21 |
| Section 10 of the Illinois
Constitution
and the |
22 |
| Intergovernmental Cooperation Act.
|
23 |
| (c) The Authority shall have the power to share employees |
24 |
| with other units
of government, including agencies of the |
25 |
| United States, agencies of the State
of
Illinois, and agencies |
|
|
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| or personnel of any unit of local government.
|
2 |
| (d) The Authority shall have the power to exercise powers |
3 |
| and issue bonds as
if it were a municipality so authorized in |
4 |
| Divisions 12.1, 74, 74.1, 74.3,
74.4, and 74.5 of Article 11 of |
5 |
| the Illinois Municipal Code.
|
6 |
| Section 13. Fees and charges. The Authority may collect |
7 |
| fees and charges in
connection with its loans, commitments, and |
8 |
| servicing and may provide technical
assistance in the |
9 |
| development of the region.
|
10 |
| Section 14. Designation of depository. The Authority shall |
11 |
| biennially designate a national or State bank or banks as |
12 |
| depositories of its money. Those depositories shall be |
13 |
| designated only within the State and upon condition that bonds |
14 |
| approved as to form and surety by the Authority and at least |
15 |
| equal in amount to the maximum sum expected to be on deposit at |
16 |
| any one time shall be first given by the depositories to the |
17 |
| Authority, those bonds to be conditioned for the safekeeping |
18 |
| and prompt repayment of the deposits. When any of the funds of |
19 |
| the Authority shall be deposited by the treasurer in any such |
20 |
| depository, the treasurer and the sureties on his official bond |
21 |
| shall, to that extent, be exempt from liability for the loss of |
22 |
| any of the deposited funds by reason of the failure, |
23 |
| bankruptcy, or any other act or default of the depository. |
24 |
| However, the Authority may accept assignments of collateral by |
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| any depository of its funds to secure the deposits to the same |
2 |
| extent and conditioned in the same manner as assignments of |
3 |
| collateral are permitted by law to secure deposits of the funds |
4 |
| of any city.
|
5 |
| Section 90. The Illinois Finance Authority Act is amended |
6 |
| by adding Section 825-13.5 as follows:
|
7 |
| (20 ILCS 3501/825-13.5 new)
|
8 |
| Sec. 825-13.5. Supervision of the Illinois Urban |
9 |
| Development Authority bond issuances. |
10 |
| (a) All bond issuances of the Illinois Urban Development |
11 |
| Authority are subject to supervision, management, control, and |
12 |
| approval of the Authority.
|
13 |
| (b) All bonds issued by the Illinois Urban Development |
14 |
| Authority under the supervision of the Authority are subject to |
15 |
| the terms and conditions that are set forth in the Illinois |
16 |
| Urban Development Authority Act.
|
17 |
| (c) The bonds issued by the Illinois Urban Development |
18 |
| Authority under the supervision of the Authority are not debts |
19 |
| of the Authority or of the State.
|