HB2352ham001 95TH GENERAL ASSEMBLY

Rep. Wyvetter H. Younge

Filed: 4/18/2007

09500HB2352ham001 LRB095 00996 BDD 35135 a

AMENDMENT TO HOUSE BILL 2352

AMENDMENT NO. ______. Amend House Bill 2352 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Community Investment Corporation Development Act.

Section 5. Definitions. As used in this Act:

"Community investment corporation" means a for-profit, citizen-owned, professionally managed real estate planning and development corporation or land cooperative that may:

(i) receive title to land, natural resources, physical infrastructure or facility donated by a not-for-profit organization or government entity;

(ii) borrow money on behalf of its shareholders to purchase land, plan its use, and develop the land and natural resources for productive and ecologically suitable purposes; and

(iii) enable each citizen whose principal residence is situated in a local or regional area in which its future development will be controlled by a community investment corporation to acquire free as a right of citizenship an equal, lifetime, non-transferable, private property ownership stake in local land use and infrastructural development, share profits from land rentals, natural resource use or extraction revenues, and infrastructure user fees, and have a voice as an owner in the governance of future land development in the community.

"Commission" means the Community Investment Corporation Development Commission established in Section 10.

"Department" means the Department of Commerce and Economic Opportunity.

Section 10. Community Investment Corporation Development Commission.

(a) The Community Investment Corporation Development Commission is created within the Department.

(b) The Commission shall consist of 11 members appointed by the Governor, with the advice and consent of the Senate, one of whom shall be designated as chair of the Commission at the time of appointment.

(c) Of the members initially appointed, 3 members shall serve a term of one year, 3 members shall serve a term of 2 years, 3 members shall serve a term of 3 years, and 2 members, one of whom must be the chair, shall serve a term of 4 years. Thereafter, all terms shall be for 4 years.

Section 15. Operation of Commission.

(a) The Commission may begin to conduct business upon the appointment of a majority of the voting members, including the chair.

(b) The Commission may adopt bylaws, and it may establish committees and officers as it deems necessary.

(c) For purposes of Commission meetings, a quorum is 6 members. Meetings of the Commission are subject to the Open Meetings Act. The Commission must afford an opportunity for public comment at each meeting.

(d) Commission members shall serve without compensation, but may be reimbursed for their reasonable travel expenses from funds available for that purpose. The Department shall provide staff and administrative support services to the Commission.

Section 20. Recommendations concerning community investment corporations. The Commission shall gather information and make annual reports of recommendations to the Governor and to the General Assembly regarding the establishment and operation of community investment corporations. The reports must include recommendations concerning, without limitation:

(1) establishing policies regarding community investment corporations;

(2) approving community investment corporations in the State or regionally;

(3) establishing guidelines for citizens of localities to petition for local referenda to create community investment corporations and to determine the participation plan for allocation, shareholder governance and ownership rights, the issuance and cancellation of shares of community investment corporations, and the disposition of assets in the event of their dissolution;

(4) establishing tax reforms that encourage the use and effectiveness of community investment corporations through their exemption from all State and local taxes on their holdings of land, natural resources, improvements, other tangible and intangible assets, undistributed capital gains and undistributed profits, provided that at least 90 percent of their annual profits are distributed as taxable dividends, other forms of taxable distributions to its shareholders and workers, and debt service payments on its loans;

(5) encouraging local or regional pilot projects involving the delegation of eminent domain powers over land, natural resources, and infrastructural and other improvements in the community to the citizens residing in pilot project areas through community investment corporations;

(6) rendering assistance to localities on problems, concerns, and issues related to the development of community investment corporations;

(7) undertaking studies and gathering information and data to accomplish its purposes as set forth in this Section and to formulate and present its recommendations to the Governor and the General Assembly;

(8) applying for, accepting, and expending gifts, grants, loans, or donations from public, quasi-public, or private sources, including any matching funds as may be designated in an appropriation to the Department, to enable the Commission to carry out its purpose; and

(9) accounting annually on its fiscal activities, including any matching funds received or expended by the Commission.

Section 25. Funding sources.

(a) Subject to appropriation, the Department shall develop and maintain a program to make grants to communities seeking to establish community investment corporations and encourage them to become self-sustaining from land rentals and other fees within the first five years of their formation. The procedures for grant application shall be established by the Department by rule.

(b) The Commission, as a vital part of its function, shall seek funding from local, State, federal and private sources to make grants and loans and otherwise enhance the development of community investment corporations. The Department shall advise the Commission of all available sources of funding for economic development that it is aware of and shall assist the Commission and community investment corporations in securing such funding.

(c) Funds received under this Section shall be deposited into the Community Investment Corporation Fund, a special fund in the State treasury. Subject to appropriation, moneys in the Fund shall be expended for the purposes of this Act.

Section 30. Rules. The Commission and the Department may adopt rules necessary to implement and administer this Act.

Section 90. The State Finance Act is amended by adding Section 5.675 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The Community Investment Corporation Fund.".