Bill Text: IL HB2313 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the State Finance Act. Makes a technical change in a Section concerning special funds.

Sponsorship: Bipartisan Bill

Status: (Failed) 2013-01-08 - Session Sine Die [HB2313 Detail]

Download: Illinois-2011-HB2313-Amended.html

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Sen. John M. Sullivan

Filed: 5/17/2011

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AMENDMENT TO HOUSE BILL 2313
AMENDMENT NO. ______. Amend House Bill 2313 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Finance Authority Act is amended
by changing Sections 801-15, 825-80, and 840-5 as follows:
(20 ILCS 3501/801-15)
Sec. 801-15. There is hereby created a body politic and
corporate to be known as the Illinois Finance Authority. The
exercise of the powers conferred by law shall be an essential
public function. The Authority shall consist of 15 members, who
shall be appointed by the Governor, with the advice and consent
of the Senate. Upon the appointment of the Board and every 2
years thereafter, the chairperson of the Authority shall be
selected by the Governor to serve as chairperson for two years.
Appointments to the Authority shall be persons of recognized
ability and experience in one or more of the following areas:

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economic development, finance, banking, industrial
development, small business management, real estate
development, housing, health facilities financing, local
government financing, community development, venture finance,
construction, and labor relations, agribusiness, and
production agriculture. At the time of appointment, the
Governor shall designate 5 members to serve until the third
Monday in July 2005, 5 members to serve until the third Monday
in July 2006 and 5 members to serve until the third Monday in
July 2007. Thereafter, appointments shall be for 3-year terms.
On or after the effective date of this amendatory Act of the
97th General Assembly, no fewer than 2 members or 2
appointments to the Authority, or a combination thereof, shall
be persons of recognized ability and experience in agribusiness
or production agriculture; except that if a member of
recognized ability and experience in agribusiness or
production agriculture resigns, becomes incapacitated, or is
otherwise unable to discharge his or her duties as a member of
the Authority, that vacancy or inability to serve does not
otherwise adversely affect the requirements for a quorum, nor
prohibit the Authority from exercising its powers conferred by
law during the time of the vacancy or inability to act. A
member shall serve until his or her successor shall be
appointed and have qualified for office by filing the oath and
bond. Members of the Authority shall not be entitled to
compensation for their services as members, but shall be

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entitled to reimbursement for all necessary expenses incurred
in connection with the performance of their duties as members.
The Governor may remove any member of the Authority in case of
incompetence, neglect of duty, or malfeasance in office, after
service on him of a copy of the written charges against him and
an opportunity to be publicly heard in person or by counsel in
his own defense upon not less than 10 days' notice. From
nominations received from the Governor, the members of the
Authority shall appoint an Executive Director who shall be a
person knowledgeable in the areas of financial markets and
instruments, to hold office for a one-year term. The Executive
Director shall be the chief administrative and operational
officer of the Authority and shall direct and supervise its
administrative affairs and general management and 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 or any committee of the members may
carry out such responsibilities of the members as the members
by resolution may delegate. 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. The

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Authority may appoint Advisory Councils to (1) assist in the
formulation of policy goals and objectives, (2) assist in the
coordination of the delivery of services, (3) assist in
establishment of funding priorities for the various activities
of the Authority, and (4) target the activities of the
Authority to specific geographic regions. There may be an
Advisory Council on Economic Development. The Advisory Council
shall consist of no more than 12 members, who shall serve at
the pleasure of the Authority. Members of the Advisory Council
shall receive no compensation for their services, but may be
reimbursed for expenses incurred with their service on the
Advisory Council.
(Source: P.A. 93-205, eff. 1-1-04.)
(20 ILCS 3501/825-80)
Sec. 825-80. Fire truck revolving loan program.
(a) This Section is a continuation and re-enactment of the
fire truck revolving loan program enacted as Section 3-27 of
the Rural Bond Bank Act by Public Act 93-35, effective June 24,
2003, and repealed by Public Act 93-205, effective January 1,
2004. Under the Rural Bond Bank Act, the program was
administered by the Rural Bond Bank and the State Fire Marshal.
(a-5) For purposes of this Section, "brush truck" means a
pickup chassis with or equipped with a flatbed or a pickup box.
The truck must be rated by the manufacturer as between
three-fourths of a ton and one ton and outfitted with a fire or

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rescue apparatus.
(b) The Authority and the State Fire Marshal shall jointly
administer a fire truck revolving loan program. The program
shall provide zero-interest loans for the purchase of fire
trucks by a fire department, a fire protection district, or a
township fire department. For the purchase of brush trucks by a
fire department, a fire protection district, or a township fire
department, the program shall provide loans at a 2% rate of
simple interest per year for a brush truck if both the chassis
and the apparatus are built outside of Illinois, a 1% rate of
simple interest per year for a brush truck if either the
chassis or the apparatus is built in Illinois, or a 0% rate of
interest for a brush truck if both the chassis and the
apparatus are built in Illinois. The Authority shall make loans
based on need, as determined by the State Fire Marshal.
(c) The loan funds, subject to appropriation, shall be paid
out of the Fire Truck Revolving Loan Fund, a special fund in
the State Treasury. The Fund shall consist of any moneys
transferred or appropriated into the Fund, as well as all
repayments of loans made under the program and any balance
existing in the Fund on the effective date of this Section. The
Fund shall be used for loans to fire departments and fire
protection districts to purchase fire trucks and brush trucks
and for no other purpose. All interest earned on moneys in the
Fund shall be deposited into the Fund.
(d) A loan for the purchase of fire trucks or brush trucks

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may not exceed $250,000 to any fire department or fire
protection district. A loan for the purchase of brush trucks
may not exceed $100,000 per truck. The repayment period for the
loan may not exceed 20 years. The fire department or fire
protection district shall repay each year at least 5% of the
principal amount borrowed or the remaining balance of the loan,
whichever is less. All repayments of loans shall be deposited
into the Fire Truck Revolving Loan Fund.
(e) The Authority and the State Fire Marshal may shall
adopt rules to administer the program.
(f) Notwithstanding the repeal of Section 3-27 of the Rural
Bond Bank Act, all otherwise lawful actions taken on or after
January 1, 2004 and before the effective date of this Section
by any person under the authority originally granted by that
Section 3-27, including without limitation the granting,
acceptance, and repayment of loans for the purchase of fire
trucks, are hereby validated, and the rights and obligations of
all parties to any such loan are hereby acknowledged and
confirmed.
(Source: P.A. 94-221, eff. 7-14-05.)
(20 ILCS 3501/840-5)
Sec. 840-5. The Authority shall have the following powers:
(a) To fix and revise from time to time and charge and
collect rates, rents, fees and charges for the use of and for
the services furnished or to be furnished by a project or other

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health facilities owned, financed or refinanced by the
Authority or any portion thereof and to contract with any
person, partnership, association or corporation or other body,
public or private, in respect thereto; to coordinate its
policies and procedures and cooperate with recognized health
facility rate setting mechanisms which may now or hereafter be
established.
(b) To establish rules and regulations for the use of a
project or other health facilities owned, financed or
refinanced by the Authority or any portion thereof and to
designate a participating health institution as its agent to
establish rules and regulations for the use of a project or
other health facilities owned by the Authority undertaken for
that participating health institution.
(c) To establish or contract with others to carry out on
its behalf a health facility project cost estimating service
and to make this service available on all projects to provide
expert cost estimates and guidance to the participating health
institution and to the Authority. In order to implement this
service and, through it, to contribute to cost containment, the
Authority shall have the power to require such reasonable
reports and documents from health facility projects as may be
required for this service and for the development of cost
reports and guidelines. The Authority may appoint a Technical
Committee on Health Facility Project Costs and Cost
Containment.

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(d) To make mortgage or other secured or unsecured loans to
or for the benefit of any participating health institution for
the cost of a project in accordance with an agreement between
the Authority and the participating health institution;
provided that no such loan shall exceed the total cost of the
project as determined by the participating health institution
and approved by the Authority; provided further that such loans
may be made to any entity affiliated with a participating
health institution if the proceeds of such loan are made
available to or applied for the benefit of such participating
health institution.
(e) To make mortgage or other secured or unsecured loans to
or for the benefit of a participating health institution in
accordance with an agreement between the Authority and the
participating health institution to refund outstanding
obligations, loans, indebtedness or advances issued, made,
given or incurred by such participating health institution for
the cost of a project; including the function to issue bonds
and make loans to or for the benefit of a participating health
institution to refinance indebtedness incurred by such
participating health institution in projects undertaken and
completed or for other health facilities acquired prior to or
after the enactment of this Act when the Authority finds that
such refinancing is in the public interest, and either
alleviates a financial hardship of such participating health
institution, or is in connection with other financing by the

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Authority for such participating health institution or may be
expected to result in a lessened cost of patient care and a
saving to third parties, including government, and to others
who must pay for care, or any combination thereof; provided
further that such loans may be made to any entity affiliated
with a participating health institution if the proceeds of such
loan are made available to or applied for the benefit of such
participating health institution.
(f) To mortgage all or any portion of a project or other
health facilities and the property on which any such project or
other health facilities are located whether owned or thereafter
acquired, and to assign or pledge mortgages, deeds of trust,
indentures of mortgage or trust or similar instruments, notes,
and other securities of participating health institutions to
which or for the benefit of which the Authority has made loans
or of entities affiliated with such institutions and the
revenues therefrom, including payments or income from any
thereof owned or held by the Authority, for the benefit of the
holders of bonds issued to finance such project or health
facilities or issued to refund or refinance outstanding
obligations, loans, indebtedness or advances of participating
health institutions as permitted by this Act.
(g) To lease to a participating health institution the
project being financed or refinanced or other health facilities
conveyed to the Authority in connection with such financing or
refinancing, upon such terms and conditions as the Authority

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shall deem proper, and to charge and collect rents therefor and
to terminate any such lease upon the failure of the lessee to
comply with any of the obligations thereof; and to include in
any such lease, if desired, provisions that the lessee thereof
shall have options to renew the lease for such period or
periods and at such rent as shall be determined by the
Authority or to purchase any or all of the health facilities or
that upon payment of all of the indebtedness incurred by the
Authority for the financing of such project or health
facilities or for refunding outstanding obligations, loans,
indebtedness or advances of a participating health
institution, then the Authority may convey any or all of the
project or such other health facilities to the lessee or
lessees thereof with or without consideration.
(h) To make studies of needed health facilities that could
not sustain a loan were it made under this Act and to recommend
remedial action to the General Assembly; to do the same with
regard to any laws or regulations that prevent health
facilities from benefiting from this Act.
(i) To assist the Department of Commerce and Economic
Opportunity to establish and implement a program to assist
health facilities to identify and arrange financing for energy
conservation projects in buildings and facilities owned or
leased by health facilities.
(j) To assist the Department of Human Services in
establishing a low interest loan program to help child care

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centers and family day care homes serving children of low
income families under Section 22.4 of the Children and Family
Services Act. The Authority, on or after the effective date of
this amendatory Act of the 97th General Assembly, is authorized
to convert existing agreements for financial aid in accordance
with Section 840-5(j) to permanent capital to leverage
additional private capital and establish a revolving loan fund
for nonprofit corporations providing human services under
contract to the State.
(k) To assist the Department of Public Health and nursing
homes in undertaking nursing home conversion projects in
accordance with the Older Adult Services Act.
(Source: P.A. 93-205, eff. 1-1-04; 93-1031, eff. 8-27-04.)
Section 99. Effective date. This Act takes effect upon
becoming law.".