Bill Text: IL HB5174 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Finance Authority Act. Defines "municipal bond issuer" and "municipal bond program project". Provides that the Illinois Finance Authority may approve an application to finance or refinance a municipal bond program project located outside of the State only after it has made certain conclusive findings. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-01-08 - Session Sine Die [HB5174 Detail]

Download: Illinois-2011-HB5174-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB5174 Introduced , by Rep. Marlow H. Colvin SYNOPSIS AS INTRODUCED:
20 ILCS 3501/801-5
20 ILCS 3501/801-10
20 ILCS 3501/801-55
Amends the Illinois Finance Authority Act. Defines "municipal bond issuer" and "municipal bond program project". Provides that the Illinois Finance Authority may approve an application to finance or refinance a municipal bond program project located outside of the State only after it has made certain conclusive findings. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Finance Authority Act is amended by
changing Sections 801-5, 801-10, and 801-55 as follows:
(20 ILCS 3501/801-5)
Sec. 801-5. Findings and declaration of policy. The General
Assembly hereby finds, determines and declares:
(a) that there are a number of existing State authorities
authorized to issue bonds to alleviate the conditions and
promote the objectives set forth below; and to provide a
stronger, better coordinated development effort, it is
determined to be in the interest of promoting the health,
safety, morals and general welfare of all the people of the
State to consolidate certain of such existing authorities into
one finance authority;
(b) that involuntary unemployment affects the health,
safety, morals and general welfare of the people of the State
of Illinois;
(c) that the economic burdens resulting from involuntary
unemployment fall in part upon the State in the form of public
assistance and reduced tax revenues, and in the event the
unemployed worker and his family migrate elsewhere to find

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work, may also fall upon the municipalities and other taxing
districts within the areas of unemployment in the form of
reduced tax revenues, thereby endangering their financial
ability to support necessary governmental services for their
remaining inhabitants;
(d) that a vigorous growing economy is the basic source of
job opportunities;
(e) that protection against involuntary unemployment, its
economic burdens and the spread of economic stagnation can best
be provided by promoting, attracting, stimulating and
revitalizing industry, manufacturing and commerce in the
State;
(f) that the State has a responsibility to help create a
favorable climate for new and improved job opportunities for
its citizens by encouraging the development of commercial
businesses and industrial and manufacturing plants within the
State;
(g) that increased availability of funds for construction
of new facilities and the expansion and improvement of existing
facilities for industrial, commercial and manufacturing
facilities will provide for new and continued employment in the
construction industry and alleviate the burden of
unemployment;
(h) that in the absence of direct governmental subsidies
the unaided operations of private enterprise do not provide
sufficient resources for residential construction,

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rehabilitation, rental or purchase, and that support from
housing related commercial facilities is one means of
stimulating residential construction, rehabilitation, rental
and purchase;
(i) that it is in the public interest and the policy of
this State to foster and promote by all reasonable means the
provision of adequate capital markets and facilities for
borrowing money by units of local government, and for the
financing of their respective public improvements and other
governmental purposes within the State from proceeds of bonds
or notes issued by those governmental units; and to assist
local governmental units in fulfilling their needs for those
purposes by use of creation of indebtedness;
(j) that it is in the public interest and the policy of
this State to the extent possible, to reduce the costs of
indebtedness to taxpayers and residents of this State and to
encourage continued investor interest in the purchase of bonds
or notes of governmental units as sound and preferred
securities for investment; and to encourage governmental units
to continue their independent undertakings of public
improvements and other governmental purposes and the financing
thereof, and to assist them in those activities by making funds
available at reduced interest costs for orderly financing of
those purposes, especially during periods of restricted credit
or money supply, and particularly for those governmental units
not otherwise able to borrow for those purposes;

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(k) that in this State the following conditions exist: (i)
an inadequate supply of funds at interest rates sufficiently
low to enable persons engaged in agriculture in this State to
pursue agricultural operations at present levels; (ii) that
such inability to pursue agricultural operations lessens the
supply of agricultural commodities available to fulfill the
needs of the citizens of this State; (iii) that such inability
to continue operations decreases available employment in the
agricultural sector of the State and results in unemployment
and its attendant problems; (iv) that such conditions prevent
the acquisition of an adequate capital stock of farm equipment
and machinery, much of which is manufactured in this State,
therefore impairing the productivity of agricultural land and,
further, causing unemployment or lack of appropriate increase
in employment in such manufacturing; (v) that such conditions
are conducive to consolidation of acreage of agricultural land
with fewer individuals living and farming on the traditional
family farm; (vi) that these conditions result in a loss in
population, unemployment and movement of persons from rural to
urban areas accompanied by added costs to communities for
creation of new public facilities and services; (vii) that
there have been recurrent shortages of funds for agricultural
purposes from private market sources at reasonable rates of
interest; (viii) that these shortages have made the sale and
purchase of agricultural land to family farmers a virtual
impossibility in many parts of the State; (ix) that the

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ordinary operations of private enterprise have not in the past
corrected these conditions; and (x) that a stable supply of
adequate funds for agricultural financing is required to
encourage family farmers in an orderly and sustained manner and
to reduce the problems described above;
(l) that for the benefit of the people of the State of
Illinois, the conduct and increase of their commerce, the
protection and enhancement of their welfare, the development of
continued prosperity and the improvement of their health and
living conditions it is essential that all the people of the
State be given the fullest opportunity to learn and to develop
their intellectual and mental capacities and skills; that to
achieve these ends it is of the utmost importance that private
institutions of higher education within the State be provided
with appropriate additional means to assist the people of the
State in achieving the required levels of learning and
development of their intellectual and mental capacities and
skills and that cultural institutions within the State be
provided with appropriate additional means to expand the
services and resources which they offer for the cultural,
intellectual, scientific, educational and artistic enrichment
of the people of the State;
(m) that in order to foster civic and neighborhood pride,
citizens require access to facilities such as educational
institutions, recreation, parks and open spaces, entertainment
and sports, a reliable transportation network, cultural

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facilities and theaters and other facilities as authorized by
this Act, and that it is in the best interests of the State to
lower the costs of all such facilities by providing financing
through the State;
(n) that to preserve and protect the health of the citizens
of the State, and lower the costs of health care, that
financing for health facilities should be provided through the
State; and it is hereby declared to be the policy of the State,
in the interest of promoting the health, safety, morals and
general welfare of all the people of the State, to address the
conditions noted above, to increase job opportunities and to
retain existing jobs in the State, by making available through
the Illinois Finance Authority, hereinafter created, funds for
the development, improvement and creation of industrial,
housing, local government, educational, health, public purpose
and other projects; to issue its bonds and notes to make funds
at reduced rates and on more favorable terms for borrowing by
local governmental units through the purchase of the bonds or
notes of the governmental units; and to make or acquire loans
for the acquisition and development of agricultural
facilities; to provide financing for private institutions of
higher education, cultural institutions, health facilities and
other facilities and projects as authorized by this Act; and to
grant broad powers to the Illinois Finance Authority to
accomplish and to carry out these policies of the State which
are in the public interest of the State and of its taxpayers

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and residents; and
(o) that providing financing alternatives for projects
that are located outside the State that are owned, operated,
leased, managed by, or otherwise affiliated with, institutions
located within the State and providing for the issuance of the
Authority's bonds and notes to make funds available at reduced
rates and on more favorable terms for borrowing by local
governmental units and persons located in the State and outside
the State through the purchase of the bonds, notes, or
obligations of local governmental units or persons would
promote the economy of the State for the benefit of the health,
welfare, safety, trade, commerce, industry, and economy of the
people of the State by creating employment opportunities in the
State and lowering the cost of accessing housing, healthcare,
private education, or cultural institutions in the State by
reducing the cost of financing or operating those projects.
(Source: P.A. 96-1021, eff. 7-12-10.)
(20 ILCS 3501/801-10)
Sec. 801-10. Definitions. The following terms, whenever
used or referred to in this Act, shall have the following
meanings, except in such instances where the context may
clearly indicate otherwise:
(a) The term "Authority" means the Illinois Finance
Authority created by this Act.
(b) The term "project" means an industrial project,

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conservation project, housing project, public purpose project,
higher education project, health facility project, cultural
institution project, municipal bond program project,
agricultural facility or agribusiness, and "project" may
include any combination of one or more of the foregoing
undertaken jointly by any person with one or more other
persons.
(c) The term "public purpose project" means any project or
facility including without limitation land, buildings,
structures, machinery, equipment and all other real and
personal property, which is authorized or required by law to be
acquired, constructed, improved, rehabilitated, reconstructed,
replaced or maintained by any unit of government or any other
lawful public purpose which is authorized or required by law to
be undertaken by any unit of government.
(d) The term "industrial project" means the acquisition,
construction, refurbishment, creation, development or
redevelopment of any facility, equipment, machinery, real
property or personal property for use by any instrumentality of
the State or its political subdivisions, for use by any person
or institution, public or private, for profit or not for
profit, or for use in any trade or business including, but not
limited to, any industrial, manufacturing or commercial
enterprise and which is (1) a capital project including but not
limited to: (i) land and any rights therein, one or more
buildings, structures or other improvements, machinery and

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equipment, whether now existing or hereafter acquired, and
whether or not located on the same site or sites; (ii) all
appurtenances and facilities incidental to the foregoing,
including, but not limited to utilities, access roads, railroad
sidings, track, docking and similar facilities, parking
facilities, dockage, wharfage, railroad roadbed, track,
trestle, depot, terminal, switching and signaling or related
equipment, site preparation and landscaping; and (iii) all
non-capital costs and expenses relating thereto or (2) any
addition to, renovation, rehabilitation or improvement of a
capital project or (3) any activity or undertaking which the
Authority determines will aid, assist or encourage economic
growth, development or redevelopment within the State or any
area thereof, will promote the expansion, retention or
diversification of employment opportunities within the State
or any area thereof or will aid in stabilizing or developing
any industry or economic sector of the State economy. The term
"industrial project" also means the production of motion
pictures.
(e) The term "bond" or "bonds" shall include bonds, notes
(including bond, grant or revenue anticipation notes),
certificates and/or other evidences of indebtedness
representing an obligation to pay money, including refunding
bonds.
(f) The terms "lease agreement" and "loan agreement" shall
mean: (i) an agreement whereby a project acquired by the

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Authority by purchase, gift or lease is leased to any person,
corporation or unit of local government which will use or cause
the project to be used as a project as heretofore defined upon
terms providing for lease rental payments at least sufficient
to pay when due all principal of, interest and premium, if any,
on any bonds of the Authority issued with respect to such
project, providing for the maintenance, insuring and operation
of the project on terms satisfactory to the Authority,
providing for disposition of the project upon termination of
the lease term, including purchase options or abandonment of
the premises, and such other terms as may be deemed desirable
by the Authority, or (ii) any agreement pursuant to which the
Authority agrees to loan the proceeds of its bonds issued with
respect to a project or other funds of the Authority to any
person which will use or cause the project to be used as a
project as heretofore defined upon terms providing for loan
repayment installments at least sufficient to pay when due all
principal of, interest and premium, if any, on any bonds of the
Authority, if any, issued with respect to the project, and
providing for maintenance, insurance and other matters as may
be deemed desirable by the Authority.
(g) The term "financial aid" means the expenditure of
Authority funds or funds provided by the Authority through the
issuance of its bonds, notes or other evidences of indebtedness
or from other sources for the development, construction,
acquisition or improvement of a project.

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(h) The term "person" means an individual, corporation,
unit of government, business trust, estate, trust, partnership
or association, 2 or more persons having a joint or common
interest, or any other legal entity.
(i) The term "unit of government" means the federal
government, the State or unit of local government, a school
district, or any agency or instrumentality, office, officer,
department, division, bureau, commission, college or
university thereof.
(j) The term "health facility" means: (a) any public or
private institution, place, building, or agency required to be
licensed under the Hospital Licensing Act; (b) any public or
private institution, place, building, or agency required to be
licensed under the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act, or the ID/DD Community Care
Act; (c) any public or licensed private hospital as defined in
the Mental Health and Developmental Disabilities Code; (d) any
such facility exempted from such licensure when the Director of
Public Health attests that such exempted facility meets the
statutory definition of a facility subject to licensure; (e)
any other public or private health service institution, place,
building, or agency which the Director of Public Health attests
is subject to certification by the Secretary, U.S. Department
of Health and Human Services under the Social Security Act, as
now or hereafter amended, or which the Director of Public
Health attests is subject to standard-setting by a recognized

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public or voluntary accrediting or standard-setting agency;
(f) any public or private institution, place, building or
agency engaged in providing one or more supporting services to
a health facility; (g) any public or private institution,
place, building or agency engaged in providing training in the
healing arts, including but not limited to schools of medicine,
dentistry, osteopathy, optometry, podiatry, pharmacy or
nursing, schools for the training of x-ray, laboratory or other
health care technicians and schools for the training of
para-professionals in the health care field; (h) any public or
private congregate, life or extended care or elderly housing
facility or any public or private home for the aged or infirm,
including, without limitation, any Facility as defined in the
Life Care Facilities Act; (i) any public or private mental,
emotional or physical rehabilitation facility or any public or
private educational, counseling, or rehabilitation facility or
home, for those persons with a developmental disability, those
who are physically ill or disabled, the emotionally disturbed,
those persons with a mental illness or persons with learning or
similar disabilities or problems; (j) any public or private
alcohol, drug or substance abuse diagnosis, counseling
treatment or rehabilitation facility, (k) any public or private
institution, place, building or agency licensed by the
Department of Children and Family Services or which is not so
licensed but which the Director of Children and Family Services
attests provides child care, child welfare or other services of

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the type provided by facilities subject to such licensure; (l)
any public or private adoption agency or facility; and (m) any
public or private blood bank or blood center. "Health facility"
also means a public or private structure or structures suitable
primarily for use as a laboratory, laundry, nurses or interns
residence or other housing or hotel facility used in whole or
in part for staff, employees or students and their families,
patients or relatives of patients admitted for treatment or
care in a health facility, or persons conducting business with
a health facility, physician's facility, surgicenter,
administration building, research facility, maintenance,
storage or utility facility and all structures or facilities
related to any of the foregoing or required or useful for the
operation of a health facility, including parking or other
facilities or other supporting service structures required or
useful for the orderly conduct of such health facility. "Health
facility" also means, with respect to a project located outside
the State, any public or private institution, place, building,
or agency which provides services similar to those described
above, provided that such project is owned, operated, leased or
managed by a participating health institution located within
the State, or a participating health institution affiliated
with an entity located within the State.
(k) The term "participating health institution" means (i) a
private corporation or association or (ii) a public entity of
this State, in either case authorized by the laws of this State

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or the applicable state to provide or operate a health facility
as defined in this Act and which, pursuant to the provisions of
this Act, undertakes the financing, construction or
acquisition of a project or undertakes the refunding or
refinancing of obligations, loans, indebtedness or advances as
provided in this Act.
(l) The term "health facility project", means a specific
health facility work or improvement to be financed or
refinanced (including without limitation through reimbursement
of prior expenditures), acquired, constructed, enlarged,
remodeled, renovated, improved, furnished, or equipped, with
funds provided in whole or in part hereunder, any accounts
receivable, working capital, liability or insurance cost or
operating expense financing or refinancing program of a health
facility with or involving funds provided in whole or in part
hereunder, or any combination thereof.
(m) The term "bond resolution" means the resolution or
resolutions authorizing the issuance of, or providing terms and
conditions related to, bonds issued under this Act and
includes, where appropriate, any trust agreement, trust
indenture, indenture of mortgage or deed of trust providing
terms and conditions for such bonds.
(n) The term "property" means any real, personal or mixed
property, whether tangible or intangible, or any interest
therein, including, without limitation, any real estate,
leasehold interests, appurtenances, buildings, easements,

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equipment, furnishings, furniture, improvements, machinery,
rights of way, structures, accounts, contract rights or any
interest therein.
(o) The term "revenues" means, with respect to any project,
the rents, fees, charges, interest, principal repayments,
collections and other income or profit derived therefrom.
(p) The term "higher education project" means, in the case
of a private institution of higher education, an educational
facility to be acquired, constructed, enlarged, remodeled,
renovated, improved, furnished, or equipped, or any
combination thereof.
(q) The term "cultural institution project" means, in the
case of a cultural institution, a cultural facility to be
acquired, constructed, enlarged, remodeled, renovated,
improved, furnished, or equipped, or any combination thereof.
(r) The term "educational facility" means any property
located within the State, or any property located outside the
State, provided that, if the property is located outside the
State, it must be owned, operated, leased or managed by an
entity located within the State or an entity affiliated with an
entity located within the State, in each case constructed or
acquired before or after the effective date of this Act, which
is or will be, in whole or in part, suitable for the
instruction, feeding, recreation or housing of students, the
conducting of research or other work of a private institution
of higher education, the use by a private institution of higher

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education in connection with any educational, research or
related or incidental activities then being or to be conducted
by it, or any combination of the foregoing, including, without
limitation, any such property suitable for use as or in
connection with any one or more of the following: an academic
facility, administrative facility, agricultural facility,
assembly hall, athletic facility, auditorium, boating
facility, campus, communication facility, computer facility,
continuing education facility, classroom, dining hall,
dormitory, exhibition hall, fire fighting facility, fire
prevention facility, food service and preparation facility,
gymnasium, greenhouse, health care facility, hospital,
housing, instructional facility, laboratory, library,
maintenance facility, medical facility, museum, offices,
parking area, physical education facility, recreational
facility, research facility, stadium, storage facility,
student union, study facility, theatre or utility.
(s) The term "cultural facility" means any property located
within the State, or any property located outside the State,
provided that, if the property is located outside the State, it
must be owned, operated, leased or managed by an entity located
within the State or an entity affiliated with an entity located
within the State, in each case constructed or acquired before
or after the effective date of this Act, which is or will be,
in whole or in part, suitable for the particular purposes or
needs of a cultural institution, including, without

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limitation, any such property suitable for use as or in
connection with any one or more of the following: an
administrative facility, aquarium, assembly hall, auditorium,
botanical garden, exhibition hall, gallery, greenhouse,
library, museum, scientific laboratory, theater or zoological
facility, and shall also include, without limitation, books,
works of art or music, animal, plant or aquatic life or other
items for display, exhibition or performance. The term
"cultural facility" includes buildings on the National
Register of Historic Places which are owned or operated by
nonprofit entities.
(t) "Private institution of higher education" means a
not-for-profit educational institution which is not owned by
the State or any political subdivision, agency,
instrumentality, district or municipality thereof, which is
authorized by law to provide a program of education beyond the
high school level and which:
(1) Admits as regular students only individuals having
a certificate of graduation from a high school, or the
recognized equivalent of such a certificate;
(2) Provides an educational program for which it awards
a bachelor's degree, or provides an educational program,
admission into which is conditioned upon the prior
attainment of a bachelor's degree or its equivalent, for
which it awards a postgraduate degree, or provides not less
than a 2-year program which is acceptable for full credit

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toward such a degree, or offers a 2-year program in
engineering, mathematics, or the physical or biological
sciences which is designed to prepare the student to work
as a technician and at a semiprofessional level in
engineering, scientific, or other technological fields
which require the understanding and application of basic
engineering, scientific, or mathematical principles or
knowledge;
(3) Is accredited by a nationally recognized
accrediting agency or association or, if not so accredited,
is an institution whose credits are accepted, on transfer,
by not less than 3 institutions which are so accredited,
for credit on the same basis as if transferred from an
institution so accredited, and holds an unrevoked
certificate of approval under the Private College Act from
the Board of Higher Education, or is qualified as a "degree
granting institution" under the Academic Degree Act; and
(4) Does not discriminate in the admission of students
on the basis of race or color. "Private institution of
higher education" also includes any "academic
institution".
(u) The term "academic institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in, or
facilitates academic, scientific, educational or professional

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research or learning in a field or fields of study taught at a
private institution of higher education. Academic institutions
include, without limitation, libraries, archives, academic,
scientific, educational or professional societies,
institutions, associations or foundations having such
purposes.
(v) The term "cultural institution" means any
not-for-profit institution which is not owned by the State or
any political subdivision, agency, instrumentality, district
or municipality thereof, which institution engages in the
cultural, intellectual, scientific, educational or artistic
enrichment of the people of the State. Cultural institutions
include, without limitation, aquaria, botanical societies,
historical societies, libraries, museums, performing arts
associations or societies, scientific societies and zoological
societies.
(w) The term "affiliate" means, with respect to financing
of an agricultural facility or an agribusiness, any lender, any
person, firm or corporation controlled by, or under common
control with, such lender, and any person, firm or corporation
controlling such lender.
(x) The term "agricultural facility" means land, any
building or other improvement thereon or thereto, and any
personal properties deemed necessary or suitable for use,
whether or not now in existence, in farming, ranching, the
production of agricultural commodities (including, without

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limitation, the products of aquaculture, hydroponics and
silviculture) or the treating, processing or storing of such
agricultural commodities when such activities are customarily
engaged in by farmers as a part of farming.
(y) The term "lender" with respect to financing of an
agricultural facility or an agribusiness, means any federal or
State chartered bank, Federal Land Bank, Production Credit
Association, Bank for Cooperatives, federal or State chartered
savings and loan association or building and loan association,
Small Business Investment Company or any other institution
qualified within this State to originate and service loans,
including, but without limitation to, insurance companies,
credit unions and mortgage loan companies. "Lender" also means
a wholly owned subsidiary of a manufacturer, seller or
distributor of goods or services that makes loans to businesses
or individuals, commonly known as a "captive finance company".
(z) The term "agribusiness" means any sole proprietorship,
limited partnership, co-partnership, joint venture,
corporation or cooperative which operates or will operate a
facility located within the State of Illinois that is related
to the processing of agricultural commodities (including,
without limitation, the products of aquaculture, hydroponics
and silviculture) or the manufacturing, production or
construction of agricultural buildings, structures, equipment,
implements, and supplies, or any other facilities or processes
used in agricultural production. Agribusiness includes but is

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not limited to the following:
(1) grain handling and processing, including grain
storage, drying, treatment, conditioning, mailing and
packaging;
(2) seed and feed grain development and processing;
(3) fruit and vegetable processing, including
preparation, canning and packaging;
(4) processing of livestock and livestock products,
dairy products, poultry and poultry products, fish or
apiarian products, including slaughter, shearing,
collecting, preparation, canning and packaging;
(5) fertilizer and agricultural chemical
manufacturing, processing, application and supplying;
(6) farm machinery, equipment and implement
manufacturing and supplying;
(7) manufacturing and supplying of agricultural
commodity processing machinery and equipment, including
machinery and equipment used in slaughter, treatment,
handling, collecting, preparation, canning or packaging of
agricultural commodities;
(8) farm building and farm structure manufacturing,
construction and supplying;
(9) construction, manufacturing, implementation,
supplying or servicing of irrigation, drainage and soil and
water conservation devices or equipment;
(10) fuel processing and development facilities that

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produce fuel from agricultural commodities or byproducts;
(11) facilities and equipment for processing and
packaging agricultural commodities specifically for
export;
(12) facilities and equipment for forestry product
processing and supplying, including sawmilling operations,
wood chip operations, timber harvesting operations, and
manufacturing of prefabricated buildings, paper, furniture
or other goods from forestry products;
(13) facilities and equipment for research and
development of products, processes and equipment for the
production, processing, preparation or packaging of
agricultural commodities and byproducts.
(aa) The term "asset" with respect to financing of any
agricultural facility or any agribusiness, means, but is not
limited to the following: cash crops or feed on hand; livestock
held for sale; breeding stock; marketable bonds and securities;
securities not readily marketable; accounts receivable; notes
receivable; cash invested in growing crops; net cash value of
life insurance; machinery and equipment; cars and trucks; farm
and other real estate including life estates and personal
residence; value of beneficial interests in trusts; government
payments or grants; and any other assets.
(bb) The term "liability" with respect to financing of any
agricultural facility or any agribusiness shall include, but
not be limited to the following: accounts payable; notes or

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other indebtedness owed to any source; taxes; rent; amounts
owed on real estate contracts or real estate mortgages;
judgments; accrued interest payable; and any other liability.
(cc) The term "Predecessor Authorities" means those
authorities as described in Section 845-75.
(dd) The term "housing project" means a specific work or
improvement undertaken to provide residential dwelling
accommodations, including the acquisition, construction or
rehabilitation of lands, buildings and community facilities
and in connection therewith to provide nonhousing facilities
which are part of the housing project, including land,
buildings, improvements, equipment and all ancillary
facilities for use for offices, stores, retirement homes,
hotels, financial institutions, service, health care,
education, recreation or research establishments, or any other
commercial purpose which are or are to be related to a housing
development.
(ee) The term "conservation project" means any project
including the acquisition, construction, rehabilitation,
maintenance, operation, or upgrade that is intended to create
or expand open space or to reduce energy usage through
efficiency measures. For the purpose of this definition, "open
space" has the definition set forth under Section 10 of the
Illinois Open Land Trust Act.
(ff) The term "significant presence" means the existence
within the State of the national or regional headquarters of an

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entity or group or such other facility of an entity or group of
entities where a significant amount of the business functions
are performed for such entity or group of entities.
(gg) The term "municipal bond issuer" means the State or
any other state or commonwealth of the United States, or any
unit of local government, school district, agency or
instrumentality, office, officer, department, division,
bureau, commission, college, or university thereof.
(hh) The term "municipal bond program project" means a
program established for the funding of the purchase of bonds,
notes, or other obligations issued by or on behalf of a
municipal bond issuer.
(Source: P.A. 96-339, eff. 7-1-10; 96-1021, eff. 7-12-10;
97-38, eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-7-11.)
(20 ILCS 3501/801-55)
Sec. 801-55. Required findings for projects located
outside the State. The Authority may approve an application to
finance or refinance a project, other than a municipal bond
program project, located outside of the State only after it has
made the following findings with respect to such financing or
refinancing, all of which shall be deemed conclusive:
(a) the entity financing or refinancing a project
located outside the State, or an affiliate thereof, is also
engaged in the financing or refinancing of a project
located within the State or, alternately, the entity

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seeking the financing or refinancing, or an affiliate
thereof, maintains a significant presence within the
State;
(b) financing or refinancing the out-of-state project
would promote the economy of the State for the benefit of
the health, welfare, safety, trade, commerce, industry and
economy of the people of the State by creating employment
opportunities in the State or lowering the cost of
accessing housing, healthcare, private education, or
cultural institutions in the State by reducing the cost of
financing or operating projects; and
(c) after giving effect to the financing or refinancing
of the out-of-state project, the Authority shall have the
ability to issue at least an additional $1,000,000,000 of
bonds under Section 845-5(a) of this Act.
The Authority may approve an application to finance or
refinance a municipal bond program project located outside of
the State only after it has made the following findings with
respect to such financing or refinancing, all of which shall be
deemed conclusive:
(a) the municipal bond program project includes the
purchase of bonds, notes, or obligations issued by or on
behalf of the State or any unit of local government, school
district, agency or instrumentality, office, officer,
department, division, bureau, commission, college, or
university thereof; and

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(b) financing or refinancing the municipal bond
program project would promote the economy of the State for
the benefit of the health, welfare, safety, trade,
commerce, industry, and economy of the people of the State
by reducing the cost of borrowing to the State or any unit
of local government, school district, agency or
instrumentality, office, officer, department, division,
bureau, commission, college, or university thereof.
The Authority shall not provide financing for any project,
or portion thereof, located outside the boundaries of the
United States of America.
Notwithstanding any other provision of this Act, the
Authority shall not provide financing that uses State volume
cap under Section 146 of the Internal Revenue Code of 1986, as
amended, or constitutes an indebtedness or obligation, general
or moral, or a pledge of the full faith or loan of credit of the
State for any project, or portion thereof, that is located
outside of the State.
(Source: P.A. 96-1021, eff. 7-12-10.)
Section 99. Effective date. This Act takes effect upon
becoming law.