SB3247 104TH GENERAL ASSEMBLY

LRB104 20261 HLH 33712 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3247

Introduced 2/3/2026, by Sen. Elgie R. Sims, Jr.

SYNOPSIS AS INTRODUCED:

20 ILCS 3501/825-65
20 ILCS 3501/845-45
50 ILCS 105/3	from Ch. 102, par. 3

Amends the Illinois Finance Authority Act. In provisions concerning bond authorization and financing limits for clean coal projects, coal projects, energy efficiency projects, PACE projects, and renewable energy projects, provides that the limitations apply to outstanding bonds (instead of issued bonds). Provides that those limitations do not include bonds issued to refund the bonds of the Illinois Finance Authority or bonds of predecessor authorities. Provides that no member, officer, or employee of the Illinois Finance Authority may be in any manner financially interested in any contract or agreement upon which that person may be called to act or vote. Requires those members, officers, and employees to abstain from deliberating or voting on the award or material modification of any contract or agreement in which that person holds a financial interest. Provides that no member, officer, or employee of the Illinois Finance Authority may take or receive, or offer to take or receive, any money or other thing of value as a gift, bribe, or means of influencing that person's vote or action in that person's official capacity. Amends the Public Officer Prohibited Activities Act. Provides that certain provisions do not apply to the members and officers of the Illinois Finance Authority. Makes other changes.

A BILL FOR

AN ACT concerning finance.

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 825-65 and 845-45 as follows:

(20 ILCS 3501/825-65)

Sec. 825-65. Clean Coal, Coal, Energy Efficiency, PACE, and Renewable Energy Project Financing.

(a) Findings and declaration of policy.

(i) It is hereby found and declared that Illinois has abundant coal resources and, in some areas of Illinois, the demand for power exceeds the generating capacity. Incentives to encourage the construction of coal-fueled electric generating plants in Illinois to ensure power generating capacity into the future and to advance clean coal technology and the use of Illinois coal are in the best interests of all of the citizens of Illinois.

(ii) It is further found and declared that Illinois has abundant potential and resources to develop renewable energy resource projects and that there are many opportunities to invest in cost-effective energy efficiency projects throughout the State. The development of those projects will create jobs and investment as well as decrease environmental impacts and promote energy independence in Illinois. Accordingly, the development of those projects is in the best interests of all of the citizens of Illinois.

(iii) The Authority is authorized to issue bonds to help finance Clean Coal, Coal, Energy Efficiency, PACE, and Renewable Energy projects pursuant to this Section.

(b) Definitions.

(i) "Clean Coal Project" means (A) "clean coal facility", as defined in Section 1-10 of the Illinois Power Agency Act; (B) "clean coal SNG facility", as defined in Section 1-10 of the Illinois Power Agency Act; (C) transmission lines and associated equipment that transfer electricity from points of supply to points of delivery for projects described in this subsection (b); (D) pipelines or other methods to transfer carbon dioxide from the point of production to the point of storage or sequestration for projects described in this subsection (b); or (E) projects to provide carbon abatement technology for existing generating facilities.

(ii) "Coal Project" means new electric generating facilities or new gasification facilities, as defined in Section 605-332 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois, which may include mine-mouth power plants, projects that employ the use of clean coal technology, projects to provide scrubber technology for existing energy generating plants, or projects to provide electric transmission facilities or new gasification facilities.

(iii) "Energy Efficiency Project" means measures that reduce the amount of electricity or natural gas required to achieve a given end use, consistent with Section 1-10 of the Illinois Power Agency Act. "Energy Efficiency Project" also includes measures that reduce the total Btus of electricity and natural gas needed to meet the end use or uses consistent with Section 1-10 of the Illinois Power Agency Act.

(iv) "Renewable Energy Project" means (A) a project that uses renewable energy resources, as defined in Section 1-10 of the Illinois Power Agency Act; (B) a project that uses environmentally preferable technologies and practices that result in improvements to the production of renewable fuels, including but not limited to, cellulosic conversion, water and energy conservation, fractionation, alternative feedstocks, or reduced greenhouse gas emissions; (C) transmission lines and associated equipment that transfer electricity from points of supply to points of delivery for projects described in this subsection (b); or (D) projects that use technology for the storage of renewable energy, including, without limitation, the use of battery or electrochemical storage technology for mobile or stationary applications.

(c) Creation of reserve funds. The Authority may establish and maintain one or more reserve funds to enhance bonds issued by the Authority for a Clean Coal Project, a Coal Project, an Energy Efficiency Project, a PACE Project, or a Renewable Energy Project. There may be one or more accounts in these reserve funds in which there may be deposited:

(1) any proceeds of the bonds issued by the Authority required to be deposited therein by the terms of any contract between the Authority and its bondholders or any resolution of the Authority;

(2) any other moneys or funds of the Authority that it may determine to deposit therein from any other source; and

(3) any other moneys or funds made available to the Authority. Subject to the terms of any pledge to the owners of any bonds, moneys in any reserve fund may be held and applied to the payment of principal, premium, if any, and interest of such bonds.

(d) Powers and duties. The Authority has the power:

(1) To issue bonds in one or more series pursuant to one or more resolutions of the Authority for any Clean Coal Project, Coal Project, Energy Efficiency Project, PACE Project, or Renewable Energy Project authorized under this Section, within the authorization set forth in subsection (e).

(2) To provide for the funding of any reserves or other funds or accounts deemed necessary by the Authority in connection with any bonds issued by the Authority.

(3) To pledge any funds of the Authority or funds made available to the Authority that may be applied to such purpose as security for any bonds or any guarantees, letters of credit, insurance contracts or similar credit support or liquidity instruments securing the bonds.

(4) To enter into agreements or contracts with third parties, whether public or private, including, without limitation, the United States of America, the State or any department or agency thereof, to obtain any appropriations, grants, loans or guarantees that are deemed necessary or desirable by the Authority. Any such guarantee, agreement or contract may contain terms and provisions necessary or desirable in connection with the program, subject to the requirements established by the Act.

(4.5) To make loans under subsection (i) of Section 801-40 to finance loans for PACE Projects.

(5) To exercise such other powers as are necessary or incidental to the foregoing.

(e) Clean Coal Project, Coal Project, Energy Efficiency Project, PACE Project, and Renewable Energy Project bond authorization and financing limits. In addition to any other bonds authorized to be issued under Sections 801-40(w), 825-60, 830-25 and 845-5, the Authority may have outstanding, at any time, bonds for the purpose enumerated in this Section 825-65 in an aggregate principal amount that shall not exceed $3,000,000,000, subject to the following limitations: (i) up to $300,000,000 may be outstanding issued to finance projects, as described in clause (C) of subsection (b)(i) and clause (C) of subsection (b)(iv) of this Section 825-65; (ii) up to $500,000,000 may be outstanding issued to finance projects, as described in clauses (D) and (E) of subsection (b)(i) of this Section 825-65; (iii) up to $2,000,000,000 may be outstanding issued to finance Clean Coal Projects, as described in clauses (A) and (B) of subsection (b)(i) of this Section 825-65 and Coal Projects, as described in subsection (b)(ii) of this Section 825-65; and (iv) up to $2,000,000,000 may be outstanding issued to finance Energy Efficiency Projects, as described in subsection (b)(iii) of this Section 825-65, Renewable Energy Projects, as described in clauses (A), (B), and (D) of subsection (b)(iv) of this Section 825-65, and PACE Projects. The limitations on aggregate principal amounts outstanding set forth in this subsection shall exclude bonds issued to refund the bonds of the Authority or bonds of the predecessor authorities issued under this Section 825-65. An application for a loan financed from bond proceeds from a borrower or its affiliates for a Clean Coal Project, a Coal Project, Energy Efficiency Project, PACE Project, or a Renewable Energy Project may not be approved by the Authority for an amount in excess of $450,000,000 for any borrower or its affiliates. A Clean Coal Project, Coal Project, or PACE Project must be located within the State. An Energy Efficiency Project may be located within the State or outside the State, provided that, if the Energy Efficiency Project is located outside of the State, it must be owned, operated, leased, or managed by an entity located within the State or any entity affiliated with an entity located within the State. These bonds shall not constitute an indebtedness or obligation of the State of Illinois and it shall be plainly stated on the face of each bond that it does not constitute an indebtedness or obligation of the State of Illinois, but is payable solely from the revenues, income or other assets of the Authority pledged therefor.

(f) The bonding authority granted under this Section is in addition to and not limited by the provisions of Section 845-5.

(Source: P.A. 100-201, eff. 8-18-17; 100-919, eff. 8-17-18.)

(20 ILCS 3501/845-45)

Sec. 845-45. Prohibited financial interest in contracts; other potential conflicts of interest.

(a) No member, officer, agent, or employee of the Authority may be in any manner financially interested, directly in that person's own name or indirectly in the name of any other person, association, trust, or corporation, in any contract or agreement upon which that person may be called to act or vote. No member, officer, or employee of the Authority may represent before the Authority, either as an agent or otherwise, any person, association, trust, or corporation, with respect to any application or bid for any contract or agreement upon which the person may be called to act or vote. No member, officer, or employee of the Authority may take or receive, or offer to take or receive, either directly or indirectly, any money or other thing of value as a gift, bribe, or means of influencing that person's vote or action in that person's official capacity. Any member, officer, or employee of the Authority who holds a financial interest prohibited by this Section shall abstain from deliberating or voting on the award or material modification of any contract or agreement in which that person holds a financial interest. If an Authority member abstains from deliberation or voting on a matter in accordance with this Section, the abstaining member shall be considered present for the purposes of establishing or maintaining a quorum. An officer or employee of the Authority that has abstained from the deliberation and awarding of a contract or agreement is permitted to perform any non-discretionary administrative duties necessary to carry out the decision of the Authority with respect to the contract or agreement. shall, in his or her own name or in the name of a nominee, be an officer or director or hold an ownership interest of more than 7 1/2% in any person, association, trust, corporation, partnership, or other entity that is, in its own name or in the name of a nominee, a party to a contract or agreement upon which the member, officer, agent, or employee may be called upon to act or vote.

(b) A member, officer, or employee of the Authority shall not be considered to have a financial interest in a contract or agreement if (i) the contract or agreement under consideration by the Authority is with a person, firm, partnership, association, corporation, cooperative association, or public body in which the member, officer, or employee of the Authority has less than a 5% share in the ownership of the entity, (ii) the interested member, officer, or employee discloses the nature and extent of the financial interest prior to deliberations concerning the proposed award or material modification of the contract or agreement, (iii) the contract or agreement is less than $1,500, and (iv) the cumulative amount of all contracts or agreements so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year does not exceed $25,000. The limitations on individual and cumulative contract or agreement amounts shall not apply to contracts or agreements that are awarded after a competitive sealed procurement or, in the case of a competitive grant opportunity, a merit-based review in which the interested member, officer, or employee was not involved. A member, officer, or employee of the Authority shall not be considered to have a financial interest in a contract or agreement involving a not-for-profit corporation, a unit of local government, a school district, or any other public body if such member, officer, or employee of the Authority serves as an officer, director, or member of the not-for-profit corporation, unit of local government, school district, or other public body on a volunteer basis with no compensation except for reimbursement by for expenses incurred as the result of the volunteer service. With respect to any direct or any indirect interest, other than an interest prohibited in subsection (a), in a contract or agreement upon which the member, officer, agent, or employee may be called upon to act or vote, a member, officer, agent, or employee of the Authority shall disclose the interest to the secretary of the Authority before the taking of final action by the Authority concerning the contract or agreement and shall so disclose the nature and extent of the interest and his or her acquisition of it, and those disclosures shall be publicly acknowledged by the Authority and entered upon the minutes of the Authority. If a member, officer, agent, or employee of the Authority holds such an interest, then he or she shall refrain from any further official involvement in regard to the contract or agreement, from voting on any matter pertaining to the contract or agreement, and from communicating with other members of the Authority or its officers, agents, and employees concerning the contract or agreement. Notwithstanding any other provision of law, any contract or agreement entered into in conformity with subsections (a) and this subsection (b) of this Section shall not be void or invalid by reason of the interest described in this subsection, nor shall any person so disclosing the interest and refraining from further official involvement as provided in subsections (a) and (b) of this Section this subsection be guilty of an offense, be removed from office, or be subject to any other penalty on account of that interest.

(c) Any contract or agreement made in violation of paragraphs (a) or (b) of this Section shall be null and void and give rise to no action against the Authority.

(d) In making determinations under this Section, to the extent applicable, the Authority may rely on precedent and Attorney General guidance involving the interpretation of Section 3 of the Public Officer Prohibited Activities Act. The Authority may, by resolution, adopt policies to interpret and effectuate this Section. Nothing in this Section shall be interpreted to supersede obligations under the State Officials and Employees Ethics Act, the Governmental Ethics Act, the Illinois Procurement Code, or the Grant Accountability and Transparency Act.

(Source: P.A. 93-205, eff. 1-1-04.)

Section 10. The Public Officer Prohibited Activities Act is amended by changing Section 3 as follows:

(50 ILCS 105/3) (from Ch. 102, par. 3)

Sec. 3. Prohibited interest in contracts.

(a) No person holding any office, either by election or appointment under the laws or Constitution of this State, may be in any manner financially interested directly in his own name or indirectly in the name of any other person, association, trust, or corporation, in any contract or the performance of any work in the making or letting of which such officer may be called upon to act or vote. No such officer may represent, either as agent or otherwise, any person, association, trust, or corporation, with respect to any application or bid for any contract or work in regard to which such officer may be called upon to vote. Nor may any such officer take or receive, or offer to take or receive, either directly or indirectly, any money or other thing of value as a gift or bribe or means of influencing his vote or action in his official character. Any contract made and procured in violation hereof is void. This Section shall not apply to any person serving on an advisory panel or commission, to the members and officers of the Illinois Finance Authority, to any director serving on a hospital district board as provided under subsection (a-5) of Section 13 of the Hospital District Law, or to any person serving as both a contractual employee and as a member of a public hospital board as provided under Article 11 of the Illinois Municipal Code in a municipality with a population between 13,000 and 16,000 that is located in a county with a population between 50,000 and 70,000.

(b) However, any elected or appointed member of the governing body may provide materials, merchandise, property, services, or labor, subject to the following provisions under either paragraph (1) or (2):

(1) If:

A. the contract is with a person, firm, partnership, association, corporation, or cooperative association in which such interested member of the governing body of the municipality has less than a 7 1/2% share in the ownership; and

B. such interested member publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract; and

C. such interested member abstains from voting on the award of the contract, though he shall be considered present for the purposes of establishing a quorum; and

D. such contract is approved by a majority vote of those members presently holding office; and

E. the contract is awarded after sealed bids to the lowest responsible bidder if the amount of the contract exceeds $1500, or awarded without bidding if the amount of the contract is less than $1500; and

F. the award of the contract would not cause the aggregate amount of all such contracts so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed $25,000.

(2) If:

A. the award of the contract is approved by a majority vote of the governing body of the municipality provided that any such interested member shall abstain from voting; and

B. the amount of the contract does not exceed $2,000; and

C. the award of the contract would not cause the aggregate amount of all such contracts so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed $4,000; and

D. such interested member publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract; and

E. such interested member abstains from voting on the award of the contract, though he shall be considered present for the purposes of establishing a quorum.

(b-5) In addition to the above exemptions, any elected or appointed member of the governing body may provide materials, merchandise, property, services, or labor if:

A. the contract is with a person, firm, partnership, association, corporation, or cooperative association in which the interested member of the governing body of the municipality, advisory panel, or commission has less than a 1% share in the ownership; and

B. the award of the contract is approved by a majority vote of the governing body of the municipality provided that any such interested member shall abstain from voting; and

C. such interested member publicly discloses the nature and extent of his interest before or during deliberations concerning the proposed award of the contract; and

D. such interested member abstains from voting on the award of the contract, though he shall be considered present for the purposes of establishing a quorum.

(c) A contract for the procurement of public utility services by a public entity with a public utility company is not barred by this Section by one or more members of the governing body of the public entity being an officer or employee of the public utility company or holding an ownership interest of no more than 7 1/2% in the public utility company, or holding an ownership interest of any size if the public entity is a municipality with a population of less than 7,500 and the public utility's rates are approved by the Illinois Commerce Commission. An elected or appointed member of the governing body of the public entity having such an interest shall be deemed not to have a prohibited interest under this Section.

(d) Notwithstanding any other provision of this Section or any other law to the contrary, until January 1, 1994, a member of the city council of a municipality with a population under 20,000 may purchase real estate from the municipality, at a price of not less than 100% of the value of the real estate as determined by a written MAI certified appraisal or by a written certified appraisal of a State certified or licensed real estate appraiser, if the purchase is approved by a unanimous vote of the city council members then holding office (except for the member desiring to purchase the real estate, who shall not vote on the question).

(e) For the purposes of this Section only, a municipal officer shall not be deemed interested if the officer is an employee of a company or owns or holds an interest of 1% or less in the municipal officer's individual name in a company, or both, that company is involved in the transaction of business with the municipality, and that company's stock is traded on a nationally recognized securities market, provided the interested member: (i) publicly discloses the fact that he or she is an employee or holds an interest of 1% or less in a company before deliberation of the proposed award of the contract; (ii) refrains from evaluating, recommending, approving, deliberating, or otherwise participating in negotiation, approval, or both, of the contract, work, or business; (iii) abstains from voting on the award of the contract though he or she shall be considered present for purposes of establishing a quorum; and (iv) the contract is approved by a majority vote of those members currently holding office.

A municipal officer shall not be deemed interested if the officer owns or holds an interest of 1% or less, not in the officer's individual name but through a mutual fund or exchange-traded fund, in a company, that company is involved in the transaction of business with the municipality, and that company's stock is traded on a nationally recognized securities market.

(f) Under either of the following circumstances, a municipal, county, or township officer may hold a position on the board of a not-for-profit corporation that is interested in a contract, work, or business of the municipality, county, or township:

(1) If the municipal, county, or township officer is appointed by the governing body of the municipality, county, or township to represent the interests of the municipality, county, or township on a not-for-profit corporation's board, then the municipal, county, or township officer may actively vote on matters involving either that board or the municipality, county, or township, at any time, so long as the membership on the not-for-profit board is not a paid position, except that the municipal, county, or township officer may be reimbursed by the not-for-profit board for expenses incurred as the result of membership on the not-for-profit board.

(2) If the municipal, county, or township officer is not appointed to the governing body of a not-for-profit corporation by the governing body of the municipality, county, or township, then the municipal, county, or township officer may continue to serve; however, the municipal, county, or township officer shall abstain from voting on any proposition before the municipal, county, or township governing body directly involving the not-for-profit corporation and, for those matters, shall not be counted as present for the purposes of a quorum of the municipal, county, or township governing body.

(Source: P.A. 103-25, eff. 1-1-24.)