Public Act 099-0499

SB1262 Enrolled LRB099 03635 AWJ 23643 b

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 5. The Upper Illinois River Valley Development

Authority Act is amended by changing Sections 4 and 7 as

follows:

(70 ILCS 530/4) (from Ch. 85, par. 7154)

Sec. 4. Establishment.

(a) There is hereby created a political subdivision, body

politic and municipal corporation named the Upper Illinois

River Valley Development Authority. The territorial

jurisdiction of the Authority is that geographic area within

the boundaries of Grundy, LaSalle, Bureau, Putnam, Kendall,

Kane, Lake, McHenry, and Marshall counties in the State of

Illinois and any navigable waters and air space located

therein.

(b) The governing and administrative powers of the

Authority shall be vested in a body consisting of 21 20 members

including, as ex officio members, the Director of Commerce and

Economic Opportunity, or his or her designee, and the Director

of the Department of Central Management Services, or his or her

designee. The other 19 18 members of the Authority shall be

designated "public members", 10 of whom shall be appointed by

the Governor with the advice and consent of the Senate and 9 8

of whom shall be appointed one each by the county board

chairmen of Grundy, LaSalle, Bureau, Putnam, Kendall, Kane,

Lake, McHenry, and Marshall counties. All public members shall

reside within the territorial jurisdiction of this Act. Eleven

members shall constitute a quorum. The public members shall be

persons of recognized ability and experience in one or more of

the following areas: economic development, finance, banking,

industrial development, small business management, real estate

development, community development, venture finance, organized

labor or civic, community or neighborhood organization. The

Chairman of the Authority shall be elected by the Board

annually from the 9 8 members appointed by the county board

chairmen.

(c) The terms of all initial members of the Authority shall

begin 30 days after the effective date of this Act. Of the 14

public members appointed pursuant to this Act, 4 appointed by

the Governor shall serve until the third Monday in January,

1992, 4 appointed by the Governor shall serve until the third

Monday in January, 1993, one appointed by the Governor shall

serve until the third Monday in January, 1994, one appointed by

the Governor shall serve until the third Monday in January

1999, the member appointed by the county board chairman of

LaSalle County shall serve until the third Monday in January,

1992, the members appointed by the county board chairmen of

Grundy County, Bureau County, Putnam County, and Marshall

County shall serve until the third Monday in January, 1994, and

the member appointed by the county board chairman of Kendall

County shall serve until the third Monday in January, 1999. The

initial members appointed by the chairmen of the county boards

of Kane and McHenry counties shall serve until the third Monday

in January, 2003. The initial members appointed by the chairman

of the county board of Lake County shall serve until the third

Monday in January, 2018. All successors shall be appointed by

the original appointing authority and hold office for a term of

3 years commencing the third Monday in January of the year in

which their term commences, except in case of an appointment to

fill a vacancy. Vacancies occurring among the public members

shall be filled for the remainder of the term. In case of

vacancy in a Governor-appointed membership when the Senate is

not in session, the Governor may make a temporary appointment

until the next meeting of the Senate when a person shall be

nominated to fill such office, and any person so nominated who

is confirmed by the Senate shall hold office during the

remainder of the term and until a successor shall be appointed

and qualified. Members of the Authority shall not be entitled

to compensation for their services as members but shall be

entitled to reimbursement for all necessary expenses incurred

in connection with the performance of their duties as members.

(d) The Governor may remove any public member of the

Authority in case of incompetency, neglect of duty, or

malfeasance in office.

(e) The Board shall appoint an Executive Director who shall

have a background in finance, including familiarity with the

legal and procedural requirements of issuing bonds, real estate

or economic development and administration. The Executive

Director shall hold office at the discretion of the Board. The

Executive Director shall be the chief administrative and

operational officer of the Authority, shall direct and

supervise its administrative affairs and general management,

shall perform such other duties as may be prescribed from time

to time by the members and shall receive compensation fixed by

the Authority. The Executive Director shall attend all meetings

of the Authority; however, no action of the Authority shall be

invalid on account of the absence of the Executive Director

from a meeting. The Authority may engage the services of such

other agents and employees, including attorneys, appraisers,

engineers, accountants, credit analysts and other consultants,

as it may deem advisable and may prescribe their duties and fix

their compensation.

(f) The Board may, by majority vote, nominate up to 4

non-voting members for appointment by the Governor. Non-voting

members shall be persons of recognized ability and experience

in one or more of the following areas: economic development,

finance, banking, industrial development, small business

management, real estate development, community development,

venture finance, organized labor or civic, community or

neighborhood organization. Non-voting members shall serve at

the pleasure of the Board. All non-voting members may attend

meetings of the Board and shall be reimbursed as provided in

subsection (c).

(g) The Board shall create a task force to study and make

recommendations to the Board on the economic development of the

territory within the jurisdiction of this Act. The members of

the task force shall reside within the territorial jurisdiction

of this Act, shall serve at the pleasure of the Board and shall

be persons of recognized ability and experience in one or more

of the following areas: economic development, finance,

banking, industrial development, small business management,

real estate development, community development, venture

finance, organized labor or civic, community or neighborhood

organization. The number of members constituting the task force

shall be set by the Board and may vary from time to time. The

Board may set a specific date by which the task force is to

submit its final report and recommendations to the Board.

(Source: P.A. 94-793, eff. 5-19-06.)

(70 ILCS 530/7) (from Ch. 85, par. 7157)

Sec. 7. Bonds.

(a) The Authority, with the written approval of the

Governor, shall have the continuing power to issue bonds,

notes, or other evidences of indebtedness in an aggregate

amount outstanding not to exceed $500,000,000 for the purpose

of developing, constructing, acquiring or improving projects,

including those established by business entities locating or

expanding property within the territorial jurisdiction of the

Authority, for entering into venture capital agreements with

businesses locating or expanding within the territorial

jurisdiction of the Authority, for acquiring and improving any

property necessary and useful in connection therewith and for

the purposes of the Employee Ownership Assistance Act. For the

purpose of evidencing the obligations of the Authority to repay

any money borrowed, the Authority may, pursuant to resolution,

from time to time issue and dispose of its interest bearing

revenue bonds, notes or other evidences of indebtedness and may

also from time to time issue and dispose of such bonds, notes

or other evidences of indebtedness to refund, at maturity, at a

redemption date or in advance of either, any bonds, notes or

other evidences of indebtedness pursuant to redemption

provisions or at any time before maturity. All such bonds,

notes or other evidences of indebtedness shall be payable

solely and only from the revenues or income to be derived from

loans made with respect to projects, from the leasing or sale

of the projects or from any other funds available to the

Authority for such purposes. The bonds, notes or other

evidences of indebtedness may bear such date or dates, may

mature at such time or times not exceeding 40 years from their

respective dates, may bear interest at such rate or rates not

exceeding the maximum rate permitted by "An Act to authorize

public corporations to issue bonds, other evidences of

indebtedness and tax anticipation warrants subject to interest

rate limitations set forth therein", approved May 26, 1970, as

amended, may be in such form, may carry such registration

privileges, may be executed in such manner, may be payable at

such place or places, may be made subject to redemption in such

manner and upon such terms, with or without premium as is

stated on the face thereof, may be authenticated in such manner

and may contain such terms and covenants as may be provided by

an applicable resolution.

(b-1) The holder or holders of any bonds, notes or other

evidences of indebtedness issued by the Authority may bring

suits at law or proceedings in equity to compel the performance

and observance by any corporation or person or by the Authority

or any of its agents or employees of any contract or covenant

made with the holders of such bonds, notes or other evidences

of indebtedness, to compel such corporation, person, the

Authority and any of its agents or employees to perform any

duties required to be performed for the benefit of the holders

of any such bonds, notes or other evidences of indebtedness by

the provision of the resolution authorizing their issuance and

to enjoin such corporation, person, the Authority and any of

its agents or employees from taking any action in conflict with

any such contract or covenant.

(b-2) If the Authority fails to pay the principal of or

interest on any of the bonds or premium, if any, as the same

become due, a civil action to compel payment may be instituted

in the appropriate circuit court by the holder or holders of

the bonds on which such default of payment exists or by an

indenture trustee acting on behalf of such holders. Delivery of

a summons and a copy of the complaint to the Chairman of the

Board shall constitute sufficient service to give the circuit

court jurisdiction of the subject matter of such a suit and

jurisdiction over the Authority and its officers named as

defendants for the purpose of compelling such payment. Any

case, controversy or cause of action concerning the validity of

this Act relates to the revenue of the State of Illinois.

(c) Notwithstanding the form and tenor of any such bonds,

notes or other evidences of indebtedness and in the absence of

any express recital on the face thereof that it is

non-negotiable, all such bonds, notes and other evidences of

indebtedness shall be negotiable instruments. Pending the

preparation and execution of any such bonds, notes or other

evidences of indebtedness, temporary bonds, notes or evidences

of indebtedness may be issued as provided by ordinance.

(d) To secure the payment of any or all of such bonds,

notes or other evidences of indebtedness, the revenues to be

received by the Authority from a lease agreement or loan

agreement shall be pledged, and, for the purpose of setting

forth the covenants and undertakings of the Authority in

connection with the issuance thereof and the issuance of any

additional bonds, notes or other evidences of indebtedness

payable from such revenues, income or other funds to be derived

from projects, the Authority may execute and deliver a mortgage

or trust agreement. A remedy for any breach or default of the

terms of any such mortgage or trust agreement by the Authority

may be by mandamus proceedings in the appropriate circuit court

to compel the performance and compliance therewith, but the

trust agreement may prescribe by whom or on whose behalf such

action may be instituted.

(e) Such bonds or notes shall be secured as provided in the

authorizing ordinance which may, notwithstanding any other

provision of this Act, include in addition to any other

security a specific pledge or assignment of and lien on or

security interest in any or all revenues or money of the

Authority from whatever source which may by law be used for

debt service purposes and a specific pledge or assignment of

and lien on or security interest in any funds or accounts

established or provided for by ordinance of the Authority

authorizing the issuance of such bonds or notes.

(f) (Blank). In the event that the Authority determines

that monies of the Authority will not be sufficient for the

payment of the principal of and interest on its bonds during

the next State fiscal year, the Chairman, as soon as

practicable, shall certify to the Governor the amount required

by the Authority to enable it to pay such principal of and

interest on the bonds. The Governor shall submit the amount so

certified to the General Assembly as soon as practicable, but

no later than the end of the current State fiscal year. This

Section shall not apply to any bonds or notes as to which the

Authority shall have determined, in the resolution authorizing

the issuance of the bonds or notes, that this Section shall not

apply. Whenever the Authority makes such a determination, that

fact shall be plainly stated on the face of the bonds or notes

and that fact shall also be reported to the Governor.

In the event of a withdrawal of moneys from a reserve fund

established with respect to any issue or issues of bonds of the

Authority to pay principal or interest on those bonds, the

Chairman of the Authority, as soon as practicable, shall

certify to the Governor the amount required to restore the

reserve fund to the level required in the resolution or

indenture securing those bonds. The Governor shall submit the

amount so certified to the General Assembly as soon as

practicable, but no later than the end of the current State

fiscal year. This subsection (f) shall not apply to any bond

issued on or after the effective date of this amendatory Act of

the 97th General Assembly.

(g) The State of Illinois pledges to and agrees with the

holders of the bonds and notes of the Authority issued pursuant

to this Section that the State will not limit or alter the

rights and powers vested in the Authority by this Act so as to

impair the terms of any contract made by the Authority with

such holders or in any way impair the rights and remedies of

such holders until such bonds and notes, together with interest

thereon, with interest on any unpaid installments of interest,

and all costs and expenses in connection with any action or

proceedings by or on behalf of such holders, are fully met and

discharged. In addition, the State pledges to and agrees with

the holders of the bonds and notes of the Authority issued

pursuant to this Section that the State will not limit or alter

the basis on which State funds are to be paid to the Authority

as provided in this Act, or the use of such funds, so as to

impair the terms of any such contract. The Authority is

authorized to include these pledges and agreements of the State

in any contract with the holders of bonds or notes issued

pursuant to this Section.

(h) (Blank).

(Source: P.A. 97-312, eff. 8-11-11; 98-750, eff. 1-1-15.)

Section 99. Effective date. This Act takes effect upon

becoming law.