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91_HB2810
LRB9106041PTmb
1 AN ACT in relation to an Illinois Recyclable Markets
2 Development Advisory Council, amending a named Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 ARTICLE 1
6 Section 1-1. Short Title. This Act may be cited as the
7 Illinois Recyclable Markets Development Act.
8 Section 1-5. Legislative intent. The General Assembly
9 has found and determined and does declare that in this State
10 the following conditions exist:
11 (1) that there is in this State an inadequate supply
12 of funds at interest rates sufficiently low to enable
13 persons engaged in the development of markets for
14 recyclable materials in this State to pursue recyclable
15 markets operations at levels necessary to absorb the
16 available supply of recyclables being collected and
17 available for further processing and use;
18 (2) that a stable supply of adequate funds for
19 recyclable markets financing is required to encourage
20 companies and local governments to reduce the continuing
21 accumulation of solid waste in landfills;
22 (3) that the inability to pursue recyclable markets
23 operations lessens the supply of recyclable markets
24 commodities available to fulfill the needs of the
25 citizens of this State;
26 (4) that the inability to continue operations
27 decreases available employment in the recyclable markets
28 sector of the State and results in unemployment and its
29 attendant problems;
30 (5) that those conditions prevent the acquisition of
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1 an adequate capital stock of recyclable products
2 equipment and machinery, much of which is manufactured in
3 this State, therefore impairing the productivity of
4 recyclable markets companies and, further, causing
5 unemployment or lack of appropriate increase in
6 employment in manufacturing;
7 (6) that those conditions are conducive to a
8 decrease in value of recyclable materials, putting in
9 jeopardy the ability of local governments to maintain
10 recycling collection, sorting, and transfer programs;
11 (7) that those conditions result in a loss in
12 population, unemployment, and movement of persons from
13 the State to other areas;
14 (8) that there have been recurrent shortages of
15 funds from private sources at reasonable rates of
16 interest;
17 (9) that these shortages have made the sale and
18 purchase of recyclable markets equipment a virtual
19 impossibility in many parts of the State;
20 (10) that the ordinary operations of private
21 enterprise have not in the past corrected these
22 conditions;
23 (11) that the use of recyclable materials is in the
24 long run cheaper, more energy efficient, and far safer
25 for the environment than the continued accumulation of
26 solid waste in landfills and the depletion of virgin
27 materials being used when recycled materials are
28 available for similar purposes;
29 (12) that to the extent practicable the State needs
30 to devote resources to projects intended to aid difficult
31 to market recyclable market commodities;
32 (13) that to the extent practicable a Recycling
33 Markets Development Advisory Council should assist in
34 converting previously collected post consumer products
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1 that would otherwise be disposed of in landfills at
2 increasing costs to the taxpayers of Illinois;
3 (14) that any agreements among lenders, borrowers,
4 or political jurisdictions that require collected source
5 separated recyclable material be delivered to a
6 designated location shall not be a criteria for granting
7 guarantees under this Act; and
8 (15) that no new or existing businesses shall be
9 given any competitive advantage as a result of this Act.
10 Based upon the above findings and declarations it is
11 determined and declared that there exist conditions in the
12 State that require the creation of the Illinois Recyclable
13 Markets Development Advisory Council to review and recommend
14 any and all project applications relating to manufacturing,
15 production, or construction of recyclable markets
16 commodities, buildings, or facilities that shall be filed
17 with the Illinois Development Finance Authority. It is
18 further determined and declared that it is the intention of
19 the General Assembly to devote, by separate appropriation, a
20 portion of any unanticipated revenues from the Illinois
21 Estate and Generation-Skipping Transfer Tax Act in an amount
22 equal to 10% of the excess of $120,000,000 in collections
23 during each subsequent fiscal year until a reserve fund to
24 support the loan guarantees provided for in this Act is
25 established.
26 Section 1-10 Definitions. As used in this Act:
27 "Recyclable Markets Facility" means land, any building,
28 or other improvement thereon or thereto, and any personal
29 properties deemed necessary or suitable for use, whether or
30 not now in existence, in the production or use of recyclable
31 markets commodities (including, without limitation, the
32 products of paper, plastic, glass, aluminum, newsprint, tire,
33 or other commodities consisting of recycled materials) or the
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1 treating, processing, or storing of recyclable markets
2 commodities when the activities are customarily engaged in by
3 businesses engaged in utilizing, processing, or converting
4 recycled commodities into usable by-products, components, or
5 materials available for sale to other buyers.
6 "Authority" means the Illinois Development Finance
7 Authority.
8 "Advisory Council" means Illinois Recyclable Markets
9 Development Advisory Council.
10 "Recyclable markets commodities" means any solid waste,
11 as defined in Section 3-3 of the Illinois Hazardous and Solid
12 Waste Recycling and Treatment Act, that may be converted by
13 any method, technique, or process into a usable or marketable
14 product.
15 "Fund" means the Illinois Recyclable Markets Loan
16 Guarantee Fund established under Section 7.96 of the Illinois
17 Development Finance Authority Act.
18 Section 1-15. Illinois Recyclable Markets Development
19 Advisory Council. There is hereby created the Illinois
20 Recyclable Markets Development Advisory Council. The
21 Advisory Council shall consist of 9 members, no more than 5
22 of whom may be of the same political party, 7 of whom shall
23 be appointed by the Governor, by and with the consent of the
24 Senate. If the Governor does not appoint those members by
25 January 1, 2000, the appointment power is transferred to the
26 Treasurer with the advice and consent of the Senate. The
27 Treasurer shall serve as a member of the Advisory Council.
28 The Lieutenant Governor shall serve as a member of the
29 Advisory Council. The Lieutenant Governor or the Treasurer
30 may appoint a representative to serve as a voting member of
31 the Advisory Council in their absence. The Advisory Council
32 shall consist of one person representing the recycling
33 industry; one person representing environmental
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1 organizations; one person being an environmental engineer;
2 one person representing an end user of recyclable
3 commodities; the Director of Energy and Natural Resources and
4 2 other persons. No other person may be appointed as a
5 member of the Advisory Council who is serving as an elected
6 officer for the State or employee of the State or for any
7 unit of local government or school district within the State.
8 The Chairman shall be elected annually from the members of
9 the Advisory Council.
10 All members shall be residents of the State, and shall be
11 knowledgeable in the fields of finance or recycling
12 materials. If the Senate is not in session when the first
13 appointments are made, the Governor shall make temporary
14 appointments as in the case of a vacancy. In making the first
15 appointments, the Governor shall designate 3 members to serve
16 until January, 2001, 2 members to serve until January, 2002,
17 and 2 members to serve until January, 2003 or until their
18 successors are appointed and qualified. Their successors
19 shall be appointed to serve for 3 year terms expiring on the
20 third Monday in January or until their successors are
21 appointed and qualified. Any vacancy occurring in the
22 Advisory Council whether by death, resignation, or otherwise,
23 shall be filled by appointment by the Governor in the same
24 manner as original appointments. A member appointed to fill
25 a vacancy shall serve for the remainder of the unexpired term
26 or until his successor is qualified.
27 Section 1-20. Related financial interests. No member of
28 the Advisory Council shall be employed by, hold any official
29 relation to, or have any financial interest in any
30 corporation or entity receiving loans, advances, or grants
31 under this Act or Sections 7.89 through 7.96 of the Illinois
32 Development Finance Authority Act or in any corporation or
33 entity providing services or materials to the Advisory
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1 Council or to any Recyclable Markets Facility financed or
2 assisted under this Act or Sections 7.89 through 7.96 of the
3 Illinois Development Finance Authority Act.
4 Section 1-25. Advisory Council duties. Any and all
5 project applications for the Illinois Recyclable Markets Loan
6 Guarantee Fund created under Section 7.96 of the Illinois
7 Development Finance Authority Act relating to manufacturing,
8 production, or construction of recyclable markets
9 commodities, buildings, or facilities shall be referred to
10 the Advisory Council created by this Act for review. The
11 Advisory Council shall make recommendations to the Authority
12 for the financing of the projects. Any applications from the
13 Advisory Council received by the Authority by the end of the
14 month shall be placed on the Authority's agenda no later than
15 the next month.
16 The Advisory Council shall file with the Governor, the
17 Secretary of the Senate, the Clerk of the House of
18 Representatives, and the Illinois Economic and Fiscal
19 Commission, by March 1 of each year, a written report
20 covering its activities for the previous fiscal year and,
21 when filed, the report shall be a public record and open for
22 inspection at the offices of the Advisory Council during
23 normal business hours. The report shall include a complete
24 list of (1) all applications for loans and other financial
25 assistance presented to the Advisory Council during the
26 fiscal year, (2) all persons that have received any form of
27 financial assistance from the Advisory Council during the
28 fiscal year, (3) the nature and amount of all the financial
29 assistance, and (4) and any other related information the
30 Advisory Council deems necessary.
31 As soon as practicable after creation of the Advisory
32 Council, the Advisory Council shall hold a meeting where
33 elective officers of the Advisory Council shall be elected,
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1 by-laws adopted, and a schedule of regular meetings adopted.
2 The by-laws and schedule may be amended from time to time
3 at the will of the Advisory Council. Special meetings of the
4 Advisory Council may be called by the chairman or any 2
5 members, and notice of special meetings shall be given to
6 members of the Advisory Council as provided in the by-laws
7 and otherwise as provided by law. Members may waive notice
8 and do so without further action by being present at any
9 meeting. Meetings of the Advisory Council shall be open to
10 the public.
11 Section 1-30. Board meetings. Five members of the
12 Advisory Council shall constitute a quorum at any meeting of
13 the Advisory Council and the affirmative vote of 5 members
14 shall be necessary for any action taken by the Advisory
15 Council at a meeting, except that a lesser number may adjourn
16 a meeting. No vacancy in the membership of the Advisory
17 Council shall impair the right of a quorum to exercise all
18 the rights and perform all the duties of the Advisory
19 Council.
20 Each member of the Advisory Council shall be reimbursed
21 for his necessary expenses incurred in the discharge of his
22 official duties.
23 Section 1-35. Liability. No member of the Advisory
24 Council or any authorized person executing the notes or bonds
25 or guarantees issued under Sections 7.89 through 7.96 of the
26 Illinois Development Finance Authority Act shall be liable
27 personally on the notes or bonds or be subject to any
28 personal liability or accountability by reason of the
29 issuance thereof.
30 Section 1-40. Cooperative agreements with the Department
31 of Energy and Natural Resources.
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1 (a) The Advisory Council may enter into cooperative
2 agreements with the Department of Energy and Natural
3 Resources to evaluate current and potential markets for
4 recyclable markets development. Under the agreements, the
5 Advisory Council may request from the Department evaluations
6 of existing recyclable materials markets and flows of
7 recyclable and non-recyclable materials in the Illinois
8 economy. The information may be used by the Advisory Council
9 when reviewing applications for loans or other financial
10 incentives and in the development of other incentives that
11 will enhance the performance of recyclable materials markets.
12 (b) A cooperative agreement entered into by the Advisory
13 Council and the Department may provide for payment for
14 services rendered by the Department under the cooperative
15 agreement from interest earnings remaining in the Illinois
16 Recyclable Markets Loan Guarantee Fund.
17 Section 1-45. Construction. This Act is necessary for
18 the welfare of the State and its inhabitants; therefore it
19 shall be liberally construed to effect its purposes.
20 ARTICLE 2
21 Section 2-1. The Illinois Development Finance Authority
22 Act is amended by adding Sections 7.89, 7.90, 7.91, 7.92,
23 7.93, 7.94, 7.95, and 7.96 as follows:
24 (20 ILCS 3505/7.89 new)
25 Sec. 7.89. Definitions. As used in Sections 7.90
26 through 7.96 of this Act:
27 "Recyclable markets facility" means land, any building,
28 or other improvement thereon or thereto, and any personal
29 properties deemed necessary or suitable for use, whether or
30 not now in existence, in the production or use of recyclable
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1 markets commodities (including, without limitation, the
2 products of paper, plastic, glass, aluminum, newsprint, tire,
3 or other commodities consisting of recycled materials) or the
4 treating, processing, or storing of recyclable markets
5 commodities when the activities are customarily engaged in by
6 businesses engaged in utilizing, processing, or converting
7 recycled commodities into usable by-products, components, or
8 materials available for sale to other buyers.
9 "Authority" means the Illinois Development Finance
10 Authority.
11 "Advisory council" means the Illinois Recyclable Markets
12 Development Advisory Council.
13 "Board" means the governing body of the Authority.
14 "Bonds" means and shall include bonds, notes,
15 certificates, bond, grant or revenue anticipation notes, or
16 any other evidence of indebtedness representing an obligation
17 to pay money.
18 "Lender" means any federal or State chartered bank,
19 federal or State chartered savings and loan association or
20 building and loan association, Small Business Investment
21 Company, or any other institution qualified within this State
22 to originate and service loans, including, but without
23 limitation to, insurance companies, credit unions, and
24 mortgage loan companies. "Lender" also means a wholly owned
25 subsidiary of a manufacturer, seller, or distributor of goods
26 or services that makes loans to businesses or individuals,
27 commonly known as a "captive finance company".
28 "Person" means, unless limited to a natural person by the
29 context in which it is used, a person, corporation,
30 association, trust, partnership, or cooperative.
31 "Recyclable Markets Business" means any sole
32 proprietorship, limited partnership, copartnership, joint
33 venture, corporation, or cooperative that operates or will
34 operate a facility located within the State of Illinois that
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1 converts or will convert "recyclable markets commodities"
2 into usable or marketable products or engage in the
3 manufacturing, production, or construction of recyclable
4 markets buildings, structures, equipment, implements, and
5 supplies, or any other facilities or processes used in
6 recyclable products production but does not include the
7 recovery of materials for fuel in combination or energy
8 production processes.
9 "Recyclable markets commodities" means any solid waste,
10 as defined in Section 3-3 of the Illinois Hazardous and Solid
11 Waste Recycling and Treatment Act, that may be converted by
12 any method, technique, or process into a usable or marketable
13 product.
14 "Fund" means the Illinois Recyclable Markets Loan
15 Guarantee Fund established under this Act.
16 "State Guarantee" means a note held by a person for which
17 the State of Illinois shall be liable for 85% of the total
18 principal and interest of the note as determined by the
19 Authority.
20 "Secondary Guarantee" means a security held by a person
21 for which the State of Illinois be liable for 100% of the
22 total principal and interest of the security as determined by
23 the Authority.
24 (20 ILCS 3505/7.90 new)
25 Sec. 7.90. All project applications for the Recyclable
26 Markets Loan Guarantee Fund created under Section 7.96
27 relating to manufacturing, production, or construction of
28 recyclable markets commodities, buildings, or facilities
29 shall be referred to the Illinois Recyclable Markets
30 Development Advisory Council created by the Illinois
31 Recyclable Markets Development Act for review. The Advisory
32 Council shall make recommendations to the Authority for the
33 financing of the projects. Any applications from the
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1 Advisory Council received by the Authority by the end of the
2 month shall be placed on the Authority's agenda no later than
3 the next month.
4 (20 ILCS 3505/7.91 new)
5 Sec. 7.91. Authority powers. The Authority shall have
6 the power to receive and accept from any source aid,
7 contributions, or loans of money, property, labor, or other
8 items of value for furtherance of any of its purposes,
9 subject to any conditions not inconsistent with this Act or
10 with the laws of this State pertaining to contributions,
11 including, but without limitation to, gifts, guarantees, or
12 grants from any department, agency, or instrumentality of the
13 United States of America and may participate in any other way
14 in any federal, State, or local government program.
15 (20 ILCS 3505/7.92 new)
16 Sec. 7.92. Bonds of the Authority. The Authority may
17 issue bonds or secondary guarantees for the purposes of
18 establishing secondary markets for the guaranteed loans
19 authorized herein. The Advisory Council shall develop a
20 report on developing secondary markets and submit it to the
21 Governor and the General Assembly no later than January 1,
22 1995.
23 (20 ILCS 3505/7.93 new)
24 Sec. 7.93. State Guarantees limit. The Authority shall
25 not have outstanding at any one time State Guarantees under
26 Section 7.95 in an aggregate principal amount exceeding
27 $20,000,000, provided that until such time as the Illinois
28 Recyclable Markets Loan Guarantee Fund achieves a balance of
29 $4,000,000, the Authority shall not have outstanding at any
30 one time, State Guarantees under Section 7.95 in an aggregate
31 principal amount exceeding 5 times the balance of the Fund.
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1 (20 ILCS 3505/7.94 new)
2 Sec. 7.94. Notes and bonds of the Authority. The notes
3 and bonds of the Authority are securities in which all public
4 officers and bodies of this State and all municipalities and
5 municipal subdivisions, all insurance companies, and
6 associations, and other persons carrying on an insurance
7 business, all banks, trust companies, savings banks, and
8 savings associations, saving and loan associations,
9 investment companies, all administrators, guardians,
10 executors, trustees and other fiduciaries, and all other
11 persons who are authorized to invest in bonds or other
12 obligations of the State, may properly and legally invest
13 funds, including capital, in their control or belonging to
14 them.
15 (20 ILCS 3505/7.95 new)
16 Sec. 7.95. Issuance of State Guarantees.
17 (a) The Authority is authorized to issue State Guarantees
18 for Recyclable Markets Business debts held by a lender. The
19 Authority and the Advisory Council shall establish the
20 maximum permissible debt to asset ratio based on criteria
21 established by the Authority.
22 Lenders shall apply for the State Guarantees on forms
23 provided by the Authority and certify that the application
24 and any other documents submitted are true and correct. The
25 lender or borrower, or both, in consideration, shall pay an
26 administrative fee as determined by the Authority. The
27 applicant shall be responsible for paying any fees or charges
28 involved in recording mortgages, releases, financing
29 statements, insurance for secondary issues, and any other
30 similar fees or charges as the Authority may require. The
31 application shall at a minimum contain the business name,
32 address, present credit, and financial information, including
33 cash flow statements, financial statements, balance sheets,
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1 and any other information pertinent to the application, and
2 the collateral to be used to secure the State Guarantee. In
3 addition, the lender must agree to charge a fixed or
4 adjustable interest rate which the Authority determines to be
5 below the rate of interest generally available to the
6 borrower, taking into account the marketability of the loan
7 to potential secondary markets. If both the lender and
8 applicant agree, the interest rate on the State Guarantee
9 Loan can be converted to a fixed interest rate at any time
10 during the term of the loan.
11 (b) The Authority shall provide or renew a State
12 Guarantee to a lender if:
13 (1) A fee equal to 25 basis points on the loan is
14 paid to the Authority on an annual basis by the lender.
15 (2) The application provides collateral acceptable
16 to the Authority that is at least equal to the State's
17 portion of the Guarantee to be provided.
18 (3) The lender assumes all responsibility and costs
19 for pursuing legal action on collecting any loan that is
20 delinquent or in default.
21 (4) The lender is responsible for the first 15% of
22 the outstanding principal of the note for which the State
23 Guarantee has been applied.
24 (20 ILCS 3505/7.96 new)
25 Sec. 7.96. Illinois Recyclable Markets Loan Guarantee
26 Fund. There is hereby created inside of the State Treasury a
27 trust fund to be known as the Illinois Recyclable Markets
28 Loan Guarantee Fund. The State Treasurer shall be ex officio
29 custodian of the Fund. Any amounts in the Illinois
30 Recyclable Markets Loan Guarantee Fund not currently needed
31 to meet the obligations of the Fund shall be invested as
32 provided by law and all interest earned from the investments
33 shall be retained in the Illinois Recyclable Markets Loan
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1 Guarantee Fund. Monies in the trust fund are not subject to
2 appropriation by the General Assembly. The Authority shall
3 provide for its expenses from its operations by the charges
4 and fees or from the proceeds of investments on its reserve
5 fund as it may decide or from investment earnings from
6 Illinois Recyclable Markets Loan Guarantee Fund or special
7 funds that the Authority is empowered to use.
8 In the event of default on any guaranteed loan, the
9 lender shall be entitled and the Authority shall direct
10 payment on the State Guarantee after 90 days of delinquency.
11 All payments by the Authority shall be made from the Illinois
12 Recyclable Markets Loan Guarantee Fund to satisfy claims
13 against the State Guarantee. The Illinois Recyclable Markets
14 Loan Guarantee Fund shall guarantee receipt of payment of the
15 85% of the principal and interest owed on the State Guarantee
16 Loan by the borrower to the guarantee holder.
17 It shall be the responsibility of the lender to proceed
18 with the collecting and disposing of collateral on the State
19 Guarantee within 14 months of the time the State Guarantee is
20 declared delinquent; provided, however, that the lender shall
21 not collect or dispose of collateral on the State Guarantee
22 without the express written prior approval of the Authority.
23 If the lender does not dispose of the collateral within 14
24 months, the lender shall be liable to repay to the State
25 interest on the State Guarantee equal to the same rate that
26 the lender charges on the State Guarantee; provided, however,
27 that the Authority may extend the 14 month period for a
28 lender in the case of bankruptcy or extenuating
29 circumstances. The Fund shall be reimbursed for any amounts
30 paid under this Section upon liquidation of the collateral.
31 The Authority, by resolution of the Board, may borrow sums
32 from the Fund and provide for repayment as soon as practical
33 upon receipt of payments of principal and interest by a
34 borrower. Money may be borrowed from the Fund by the
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1 Authority for the sole purpose of paying certain interest
2 costs for borrowers associated with selling a loan subject to
3 a State Guarantee in a secondary market as may be deemed
4 reasonable and necessary by the Authority.
5 ARTICLE 3
6 Section 3-1. This Act takes effect upon becoming law.