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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Finance Authority Act is amended by | ||||||
5 | adding Sections 825-105 and 825-110 as follows: | ||||||
6 | (20 ILCS 3501/825-105 new) | ||||||
7 | Sec. 825-105. Implementation of ARRA provisions regarding | ||||||
8 | recovery zone bonds. | ||||||
9 | (a) Findings. | ||||||
10 | Recovery zone bonds authorized by the American Recovery and | ||||||
11 | Reinvestment Act of
2009 are an important economic development | ||||||
12 | tool for the State. All counties in the State and
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13 | municipalities in the State with a population of 100,000 or | ||||||
14 | more have received an
allocation of recovery zone bond | ||||||
15 | authorization. Under federal law, those allocations must be
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16 | used on or before December 31, 2010. The State strongly | ||||||
17 | encourages counties and
municipalities to issue recovery zone | ||||||
18 | bonds to spur economic development in the State.
Under federal | ||||||
19 | law, the allocations may be voluntarily waived to the State for | ||||||
20 | reallocation
by the State to other jurisdictions and other | ||||||
21 | projects in the State. This Section sets forth the
process by | ||||||
22 | which the Authority, on behalf of the State, will receive |
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1 | otherwise unused
allocations and ensure that this valuable | ||||||
2 | economic development incentive will be used to the
fullest | ||||||
3 | extent feasible for the benefit of the citizens of the State of | ||||||
4 | Illinois. | ||||||
5 | (b) Definitions. | ||||||
6 | (i) "Affected local government" means either any | ||||||
7 | county in the State or a
municipality within the State if | ||||||
8 | the municipality has a population of 100,000 or more. | ||||||
9 | (ii) "Allocation amount" means the $666,972,000 amount | ||||||
10 | of recovery zone economic development bonds and | ||||||
11 | $1,000,457,000 amount of recovery zone facility bonds | ||||||
12 | authorized under ARRA for the financing of qualifying | ||||||
13 | projects located within the State and the sub-allocation of | ||||||
14 | those amounts among each affected local government. | ||||||
15 | (iii) "ARRA" means, collectively, the American | ||||||
16 | Recovery and Reinvestment Act of 2009, including, without | ||||||
17 | limitation, Sections 1400U-1, 1400U-2, and 1400U-3 of the | ||||||
18 | Code; the guidance provided by the Internal Revenue Service | ||||||
19 | applicable to recovery zone bonds; and any legislation | ||||||
20 | subsequently adopted by the United States Congress to | ||||||
21 | extend or expand the economic development bond financing | ||||||
22 | incentives authorized by ARRA. | ||||||
23 | (iv) "ARRA implementing regulations" means the | ||||||
24 | regulations promulgated by the Authority as further | ||||||
25 | described in subdivision (d)(iv) of this Section to |
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1 | implement the provisions of this Section. | ||||||
2 | (v) "Code" means the Internal Revenue Code of 1986, as | ||||||
3 | amended. | ||||||
4 | (vi) "Recovery zone" means any area designated | ||||||
5 | pursuant to Section 1400U-1 of the Code. | ||||||
6 | (vii) "Recovery zone bond" means any recovery zone | ||||||
7 | economic development bond or recovery zone facility bond | ||||||
8 | issued pursuant to Sections 1400U-2 and 1400U-3, | ||||||
9 | respectively, of the Code. | ||||||
10 | (viii) "Recovery zone bond allocation" means an | ||||||
11 | allocation of authority to issue recovery zone bonds | ||||||
12 | granted pursuant to Section 1400U-1 of the Code. | ||||||
13 | (ix) "Regional authority" means the Central Illinois | ||||||
14 | Economic Development Authority, Eastern Illinois Economic | ||||||
15 | Development Authority, Joliet Arsenal Development | ||||||
16 | Authority, Quad Cities Regional Economic Development | ||||||
17 | Authority, Riverdale Development Authority, Southeastern | ||||||
18 | Illinois Economic Development Authority, Southern Illinois | ||||||
19 | Development Authority, Southwestern Illinois Development | ||||||
20 | Authority, Tri-County River Valley Development Authority, | ||||||
21 | Upper Illinois River Valley Development Authority, | ||||||
22 | Illinois Urban Development Authority, Western Illinois | ||||||
23 | Economic Development Authority, or Will-Kankakee Regional | ||||||
24 | Development Authority. | ||||||
25 | (x) "Sub-allocation" means the portion of the | ||||||
26 | allocation amount allocated to each affected local |
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1 | government. | ||||||
2 | (xi) "Waived recovery zone bond allocation" means the | ||||||
3 | amount of the recovery zone bond allocation voluntarily | ||||||
4 | waived by an affected local government. | ||||||
5 | (xii) "Waiver agreement" means an agreement between | ||||||
6 | the Authority and an
affected local government providing | ||||||
7 | for the voluntary waiver, in whole or in part, of that
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8 | affected local government's sub-allocation to the | ||||||
9 | Authority. The waiver agreement may provide for the payment | ||||||
10 | of an affected local
government's reasonable fees and costs | ||||||
11 | as determined by the Authority in connection with
the | ||||||
12 | affected local government's voluntary waiver of its | ||||||
13 | sub-allocation. | ||||||
14 | (c) Additional findings. | ||||||
15 | It is found and declared that: | ||||||
16 | (i) it is in the public interest and for the benefit of | ||||||
17 | the State to maximize the use of economic development | ||||||
18 | incentives authorized by ARRA; | ||||||
19 | (ii) those incentives include the maximum use of the | ||||||
20 | allocation amount for the issuance of recovery zone bonds | ||||||
21 | to promote job creation and economic development in any | ||||||
22 | area that has been designated as a recovery zone by an | ||||||
23 | affected local government under the applicable provisions | ||||||
24 | of ARRA; | ||||||
25 | (iii) those incentives also include the issuance by the |
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1 | Authority of recovery zone bonds for the purposes of | ||||||
2 | financing qualifying projects to be financed with proceeds | ||||||
3 | of recovery zone bonds; and | ||||||
4 | (iv) the provisions of this Section reflect the State's | ||||||
5 | determination in good faith and in its discretion of the | ||||||
6 | reasonable manner in which waived recovery zone bond | ||||||
7 | allocations should be reallocated by the Authority. | ||||||
8 | (d) Powers of Authority. | ||||||
9 | (i) In order to carry out the provisions of ARRA and | ||||||
10 | further the purposes of this Section, the Authority has: | ||||||
11 | (A) the power to receive from any affected local | ||||||
12 | government its sub-allocation that it voluntarily | ||||||
13 | waives to the Authority, in whole or in part, for | ||||||
14 | reallocation by the Authority to a regional authority | ||||||
15 | specifically designated by that affected local | ||||||
16 | government, and the Authority shall reallocate that | ||||||
17 | waived recovery zone bond allocation to the regional | ||||||
18 | authority specifically designated by that affected | ||||||
19 | local government; provided that (1) the affected local | ||||||
20 | government must take official action by resolution or | ||||||
21 | ordinance, as applicable, to waive the sub-allocation | ||||||
22 | to the Authority and specifically designate that its | ||||||
23 | waived recovery zone bond allocation should be | ||||||
24 | reallocated to a regional authority; (2) the regional | ||||||
25 | authority must use the sub-allocation to issue |
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1 | recovery zone bonds on or before August 16, 2010 and, | ||||||
2 | if recovery zone bonds are not issued on or before | ||||||
3 | August 16, 2010, the sub-allocation shall be deemed | ||||||
4 | waived to the Authority for reallocation by the | ||||||
5 | Authority to qualifying projects; and (3) the proceeds | ||||||
6 | of the recovery zone bonds must be used for qualified | ||||||
7 | projects within the jurisdiction of the applicable | ||||||
8 | regional authority; | ||||||
9 | (B) at the Authority's sole discretion, the power | ||||||
10 | to reallocate any sub-allocation deemed waived to the | ||||||
11 | Authority pursuant to subsection (d)(i)(A)(2) back to | ||||||
12 | the regional authority that had the sub-allocation; | ||||||
13 | (C) the power to enter into waiver agreements with | ||||||
14 | affected local governments
to provide for their | ||||||
15 | voluntary waivers, in whole or in part, of their | ||||||
16 | sub-allocations, to
receive waived recovery zone bond | ||||||
17 | allocations from those affected local governments, and | ||||||
18 | to use those waived recovery zone bond allocations, in | ||||||
19 | whole or in part, to issue recovery zone bonds of the | ||||||
20 | Authority for qualifying projects or to reallocate | ||||||
21 | those waived recovery zone bond allocations, in whole | ||||||
22 | or in part, to a county or municipality to issue its | ||||||
23 | own recovery zone bonds for qualifying projects; | ||||||
24 | (D) the power to designate areas within the State | ||||||
25 | as recovery zones or all of the State as a recovery | ||||||
26 | zone; and |
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1 | (E) the power to issue recovery zone bonds for any | ||||||
2 | project authorized to be financed with proceeds | ||||||
3 | thereof under the applicable provisions of ARRA. | ||||||
4 | (ii) In addition to the powers set forth in item (i), | ||||||
5 | the Authority shall be the sole recipient, on behalf of the | ||||||
6 | State, of any waived recovery zone bond allocations. | ||||||
7 | Recovery zone bond allocations can be waived to the | ||||||
8 | Authority only by voluntary waiver as provided in this | ||||||
9 | Section. | ||||||
10 | (iii) In addition to the powers set forth in items (i) | ||||||
11 | and (ii), the Authority has any powers otherwise enjoyed by | ||||||
12 | the Authority in connection with the issuance of its bonds | ||||||
13 | if those powers are not in conflict with any provisions | ||||||
14 | with respect to recovery zone bonds set forth in ARRA. | ||||||
15 | (iv) The Authority has the power to adopt regulations | ||||||
16 | providing for the implementation of any of the provisions | ||||||
17 | contained in this Section, including provisions regarding | ||||||
18 | waiver agreements and the reallocation of all or any | ||||||
19 | portion of the allocation amount and sub-allocations and | ||||||
20 | the issuance of recovery zone bonds; except that those | ||||||
21 | regulations shall not (1) apply to or affect any | ||||||
22 | designation of a recovery zone by a county or municipality, | ||||||
23 | (2) provide for any waiver or reallocation of an affected | ||||||
24 | local government's sub-allocation other than a voluntary | ||||||
25 | waiver as described in subsection (d), or (3) be | ||||||
26 | inconsistent with the provisions of subsection (d)(i). |
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1 | Regulations adopted by the Authority for determining | ||||||
2 | reallocation of all or any portion of a waived recovery | ||||||
3 | zone bond allocation may include, but are not limited to, | ||||||
4 | (1) the ability of the county or municipality to issue | ||||||
5 | recovery zone bonds on or before December 31, 2010, (2) the | ||||||
6 | amount of jobs that will be retained or created, or both, | ||||||
7 | by the qualifying project to be financed by recovery zone | ||||||
8 | bonds, and (3) the geographical proximity of the qualifying | ||||||
9 | project to be financed by recovery zone bonds to a county | ||||||
10 | or municipality that voluntarily waived its sub-allocation | ||||||
11 | to the Authority. | ||||||
12 | (v) Unless extended by an act of the United States | ||||||
13 | Congress, no recovery zone
bonds may be issued after | ||||||
14 | December 31, 2010. | ||||||
15 | (e) Established dates for notice. | ||||||
16 | Any affected local government or any regional authority | ||||||
17 | that has issued recovery zone bonds on or before the effective | ||||||
18 | date of this Section must report its issuance of recovery zone | ||||||
19 | bonds to the Authority within 30 days after the effective date | ||||||
20 | of this Section. After the effective date of this Section, any | ||||||
21 | affected local government or any regional authority must report | ||||||
22 | its issuance of recovery zone bonds to the Authority not less | ||||||
23 | than 30 days after those bonds are issued. | ||||||
24 | (f) Reports to the General Assembly. |
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1 | Starting 60 days after the effective date of this Section | ||||||
2 | and ending on January 15, 2011, the Authority shall file a | ||||||
3 | report before the 15th day of each month with the General | ||||||
4 | Assembly detailing its implementation of this Section, | ||||||
5 | including but not limited to the dollar amount of the | ||||||
6 | allocation amount that has been reallocated by the Authority | ||||||
7 | pursuant to this Section, the recovery zone bonds issued in the | ||||||
8 | State as of the date of the report, and descriptions of the | ||||||
9 | qualifying projects financed by those recovery zone bonds. | ||||||
10 | (20 ILCS 3501/825-110 new) | ||||||
11 | Sec. 825-110. Implementation of ARRA provisions regarding | ||||||
12 | qualified energy conservation bonds. | ||||||
13 | (a) Definitions. | ||||||
14 | (i) "Affected local government" means any county or | ||||||
15 | municipality within the
State if the county or municipality | ||||||
16 | has a population of 100,000 or more, as defined in
Section | ||||||
17 | 54D(e)(2)(C) of the Code. | ||||||
18 | (ii) "Allocation amount" means the $133,846,000 amount | ||||||
19 | of qualified energy conservation bonds authorized under | ||||||
20 | ARRA for the financing of qualifying projects located | ||||||
21 | within the State and the sub-allocation of those amounts | ||||||
22 | among each affected local government. | ||||||
23 | (iii) "ARRA" means, collectively, the American | ||||||
24 | Recovery and Reinvestment Act of 2009, including, without |
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1 | limitation, Section 54D of the Code; the guidance provided | ||||||
2 | by the Internal Revenue Service applicable to qualified | ||||||
3 | energy conservation bonds; and any legislation | ||||||
4 | subsequently adopted by the United States Congress to | ||||||
5 | extend or expand the economic development bond financing | ||||||
6 | incentives authorized by ARRA. | ||||||
7 | (iv) "ARRA implementing regulations" means the | ||||||
8 | regulations promulgated by the Authority as further | ||||||
9 | described in subdivision (c)(iv) of this Section to | ||||||
10 | implement the provisions of this Section. | ||||||
11 | (v) "Code" means the Internal Revenue Code of 1986, as | ||||||
12 | amended. | ||||||
13 | (vi) "Qualified energy conservation bond" means any | ||||||
14 | qualified energy conservation bond issued pursuant to | ||||||
15 | Section 54D of the Code. | ||||||
16 | (vii) "Qualified energy conservation bond allocation" | ||||||
17 | means an allocation of authority to issue qualified energy | ||||||
18 | conservation bonds granted pursuant to Section 54D of the | ||||||
19 | Code. | ||||||
20 | (viii) "Regional authority" means the Central Illinois | ||||||
21 | Economic Development Authority, Eastern Illinois Economic | ||||||
22 | Development Authority, Joliet Arsenal Development | ||||||
23 | Authority, Quad Cities Regional Economic Development | ||||||
24 | Authority, Riverdale Development Authority, Southeastern | ||||||
25 | Illinois Economic Development Authority, Southern Illinois | ||||||
26 | Development Authority, Southwestern Illinois Development |
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1 | Authority, Tri-County River Valley Development Authority, | ||||||
2 | Upper Illinois River Valley Development Authority, | ||||||
3 | Illinois Urban Development Authority, Western Illinois | ||||||
4 | Economic Development Authority, or Will-Kankakee Regional | ||||||
5 | Development Authority. | ||||||
6 | (ix) "Sub-allocation" means the portion of the | ||||||
7 | allocation amount allocated to each affected local | ||||||
8 | government. | ||||||
9 | (x) "Waived qualified energy conservation bond | ||||||
10 | allocation" means the amount of the qualified energy | ||||||
11 | conservation bond allocation that an affected local | ||||||
12 | government elects to reallocate to the State pursuant to | ||||||
13 | Section 54D(e)(2)(B) of the Code. | ||||||
14 | (xi) "Waiver agreement" means an agreement between the | ||||||
15 | Authority and an
affected local government providing for | ||||||
16 | the reallocation, in whole or in part, of that
affected | ||||||
17 | local government's sub-allocation to the Authority. The | ||||||
18 | waiver agreement may provide for the payment of an affected | ||||||
19 | local
government's reasonable fees and costs as determined | ||||||
20 | by the Authority in connection with
the affected local | ||||||
21 | government's reallocation of its sub-allocation. | ||||||
22 | (b) Findings. | ||||||
23 | It is found and declared that: | ||||||
24 | (i) it is in the public interest and for the benefit of | ||||||
25 | the State to maximize the use of economic development |
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1 | incentives authorized by ARRA; | ||||||
2 | (ii) those incentives include the maximum use of the | ||||||
3 | allocation amount for the issuance of qualified energy | ||||||
4 | conservation bonds to promote energy conservation under | ||||||
5 | the applicable provisions of ARRA; and | ||||||
6 | (iii) those incentives also include the issuance by the | ||||||
7 | Authority of qualified energy conservation bonds for the | ||||||
8 | purposes of financing qualifying projects to be financed | ||||||
9 | with proceeds of qualified energy conservation bonds. | ||||||
10 | (c) Powers of Authority. | ||||||
11 | (i) In order to carry out the provisions of ARRA and | ||||||
12 | further the purposes of this Section, the Authority has: | ||||||
13 | (A) the power to receive from any affected local | ||||||
14 | government its sub-allocation that it voluntarily | ||||||
15 | waives to the Authority, in whole or in part, for | ||||||
16 | allocation by the Authority to a regional authority | ||||||
17 | specifically designated by that affected local | ||||||
18 | government, and the Authority shall reallocate that | ||||||
19 | waived qualified energy conservation bond allocation | ||||||
20 | to the regional authority specifically designated by | ||||||
21 | that affected local government; provided that (1) the | ||||||
22 | affected local government must take official action by | ||||||
23 | resolution or ordinance, as applicable, to waive the | ||||||
24 | sub-allocation to the Authority and specifically | ||||||
25 | designate that its waived qualified energy |
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1 | conservation bond allocation should be reallocated to | ||||||
2 | a regional authority; (2) the regional authority must | ||||||
3 | use the sub-allocation to issue qualified energy | ||||||
4 | conservation bonds on or before August 16, 2010 and, if | ||||||
5 | qualified energy conservation bonds are not issued on | ||||||
6 | or before August 16, 2010, the sub-allocation shall be | ||||||
7 | deemed waived to the Authority for reallocation by the | ||||||
8 | Authority to qualifying projects; and (3) the proceeds | ||||||
9 | of the qualified energy conservation bonds must be used | ||||||
10 | for qualified projects within the jurisdiction of the | ||||||
11 | applicable regional authority; | ||||||
12 | (B) at the Authority's sole discretion, the power | ||||||
13 | to reallocate any sub-allocation deemed waived to the | ||||||
14 | Authority pursuant to subsection (c)(i)(A)(2) back to | ||||||
15 | the Regional Authority that had the sub-allocation; | ||||||
16 | (C) the power to enter into waiver agreements with | ||||||
17 | affected local
governments to provide for the | ||||||
18 | reallocation, in whole or in part, of their | ||||||
19 | sub-allocations,
to receive waived qualified energy | ||||||
20 | conservation bond allocations from those affected | ||||||
21 | local governments, and to use those waived qualified | ||||||
22 | energy conservation bond allocations, in whole or in | ||||||
23 | part, to issue qualified energy conservation bonds of | ||||||
24 | the Authority for qualifying projects or to reallocate | ||||||
25 | those qualified energy conservation bond allocations, | ||||||
26 | in whole or in part, to a county or municipality to |
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1 | issue its own energy conservation bonds for qualifying | ||||||
2 | projects; and | ||||||
3 | (D) the power to issue qualified energy | ||||||
4 | conservation bonds for any project authorized to be | ||||||
5 | financed with proceeds thereof under the applicable | ||||||
6 | provisions of ARRA. | ||||||
7 | (ii) In addition to the powers set forth in item (i), | ||||||
8 | the Authority shall be the sole recipient, on behalf of the | ||||||
9 | State, of any waived qualified energy conservation bond | ||||||
10 | allocations. Qualified energy conservation bond | ||||||
11 | allocations can be reallocated to the Authority only by | ||||||
12 | voluntary waiver as provided in this Section. | ||||||
13 | (iii) In addition to the powers set forth in items (i) | ||||||
14 | and (ii), the Authority has any powers otherwise enjoyed by | ||||||
15 | the Authority in connection with the issuance of its bonds | ||||||
16 | if those powers are not in conflict with any provisions | ||||||
17 | with respect to qualified energy conservation bonds set | ||||||
18 | forth in ARRA. | ||||||
19 | (iv) The Authority has the power to adopt regulations | ||||||
20 | providing for the implementation of any of the provisions | ||||||
21 | contained in this Section, including the provisions | ||||||
22 | regarding waiver agreements and reallocation of all or any | ||||||
23 | portion of the allocation amount and sub-allocations and | ||||||
24 | the issuance of qualified energy conservation bonds; | ||||||
25 | except that those regulations shall not (1) provide any | ||||||
26 | waiver or reallocation of an affected local government's |
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1 | sub-allocation other than a voluntary waiver as described | ||||||
2 | in subsection (c) or (2) be inconsistent with the | ||||||
3 | provisions of subsection (c)(i). Regulations adopted by | ||||||
4 | the Authority for determining reallocation of all or any | ||||||
5 | portion of a waived qualified energy conservation | ||||||
6 | allocation may include, but are not limited to, (1) the | ||||||
7 | ability of the county or municipality to issue qualified | ||||||
8 | energy conservation bonds by the end of a given calendar | ||||||
9 | year, (2) the amount of jobs that will be retained or | ||||||
10 | created, or both, by the qualifying project to be financed | ||||||
11 | by qualified energy conservation bonds, and (3) the | ||||||
12 | geographical proximity of the qualifying project to be | ||||||
13 | financed by qualified energy conservation bonds to a | ||||||
14 | municipality or county that reallocated its sub-allocation | ||||||
15 | to the Authority. | ||||||
16 | (d) Established dates for notice. | ||||||
17 | Any affected local government or regional authority that | ||||||
18 | has issued qualified energy conservation bonds on or before the | ||||||
19 | effective date of this Section must report its issuance of | ||||||
20 | qualified energy conservation bonds to the Authority within 30 | ||||||
21 | days after the effective date of this Section. After the | ||||||
22 | effective date of this Section, any affected local government | ||||||
23 | or any regional authority must report its issuance of qualified | ||||||
24 | energy conservation bonds to the Authority not less than 30 | ||||||
25 | days after those bonds are issued. |
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1 | (e) Reports to the General Assembly. | ||||||
2 | Starting 60 days after the effective date of this Section | ||||||
3 | and ending when there is no longer any allocation amount, the | ||||||
4 | Authority shall file a report before the 15th day of each month | ||||||
5 | with the General Assembly detailing its implementation of this | ||||||
6 | Section, including but not limited to the dollar amount of the | ||||||
7 | allocation amount that has been reallocated by the Authority | ||||||
8 | pursuant to this Section, the qualified energy conservation | ||||||
9 | bonds issued in the State as of the date of the report, and | ||||||
10 | descriptions of the qualifying projects financed by those | ||||||
11 | qualified energy conservation bonds.
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12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
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