SB0550ham001 99TH GENERAL ASSEMBLY

Rep. Sonya M. Harper

Filed: 11/28/2016

09900SB0550ham001 LRB099 03301 MJP 51716 a

AMENDMENT TO SENATE BILL 550

AMENDMENT NO. ______. Amend Senate Bill 550 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Municipal Code is amended by adding Division heading 150.1 of Article 11 and Section 11-150.1-1 as follows:

(65 ILCS 5/Art. 11 Div. 150.1 heading new)

DIVISION 150.1. LEAD HAZARD COST RECOVERY FEE

(65 ILCS 5/11-150.1-1 new)

Sec. 11-150.1-1. Lead hazard cost recovery fee. The corporate authorities of any municipality that operates a waterworks system and that incurs reasonable costs to comply with Section 17.11 of the Environmental Protection Act or rules adopted by the Department of Public Health under Section 35.5 of the Illinois Plumbing License Law shall have the authority, by ordinance, to collect a fair and reasonable fee from users of the system in order to recover those reasonable costs. Fees collected pursuant to this Section shall be used exclusively for the purpose of complying with Section 17.11 of the Environmental Protection Act and rules adopted by the Department of Public Health under Section 35.5 of the Illinois Plumbing License Law.

Section 10. The Public Utilities Act is amended by adding Section 9-246 as follows:

(220 ILCS 5/9-246 new)

Sec. 9-246. Rates; lead hazard cost recovery by investor-owned water utilities. In determining the rates for an investor-owned public utility engaged in providing water service, the Commission shall allow the utility to recover annually any reasonable costs incurred by the utility to comply with Section 17.11 of the Environmental Protection Act and any reasonable costs incurred by the utility to comply with rules adopted by the Department of Public Health under Section 35.5 of the Illinois Plumbing License Law.

Section 15. The Illinois Plumbing License Law is amended by changing Section 8 and 19 and by adding Sections 29.6 and 35.5 as follows:

(225 ILCS 320/8) (from Ch. 111, par. 1107)

Sec. 8. Powers of the Director. The Director shall:

(1) Prepare forms for application for examination for a plumber's license.

(2) Prepare and issue licenses as provided in this Act.

(3) With the aid of the Board prescribe rules and regulations for examination of applicants for plumber's licenses.

(4) With the aid of the Board prepare and give uniform and comprehensive examinations to applicants for a plumber's license which shall test their knowledge and qualifications in the planning and design of plumbing systems, their knowledge, qualifications, and manual skills in plumbing, and their knowledge of the State's minimum code of standards relating to fixtures, materials, design and installation methods of plumbing systems, promulgated pursuant to this Act.

(5) Issue a plumber's license and license renewal to every applicant who has passed the examination and who has paid the required license and renewal fee.

(6) Prescribe rules for hearings to deny, suspend, revoke or reinstate licenses as provided in this Act.

(7) Maintain a current record showing (a) the names and addresses of registered plumbing contractors, licensed plumbers, licensed apprentice plumbers, and licensed retired plumbers, (b) the dates of issuance of licenses, (c) the date and substance of the charges set forth in any hearing for denial, suspension or revocation of any license, (d) the date and substance of the final order issued upon each such hearing, and (e) the date and substance of all petitions for reinstatement of license and final orders on such petitions.

(8) Prescribe, in consultation with the Board, uniform and reasonable rules defining what constitutes an approved course of instruction in plumbing, in colleges, universities, or trade schools, and approve or disapprove the courses of instruction offered by such colleges, universities, or trade schools by reference to their compliance or noncompliance with such rules. Such rules shall be designed to assure that an approved course of instruction will adequately teach the design, planning, installation, replacement, extension, alteration and repair of plumbing.

(9) Conduct hearings and impose civil penalties pursuant to this Act.

Each instructor participating in a program of instruction in plumbing shall be:

(a) an Illinois licensed plumber;

(b) an individual who possesses a provisional career and technical educator endorsement on an educator license, issued by the State Board of Education pursuant to Section 21B-20 of the School Code in a field related to plumbing, such as hydraulics, pneumatics, or water chemistry; or

(c) a representative of an industry or a manufacturing business related to plumbing, including, but not limited to, the copper industry, plastic pipe industry, or cast iron industry. Courses that are taught by industry representatives shall be educational and shall not be sales oriented. Industry representatives shall be assisted by an Illinois licensed plumber during the presentation of a course of instruction.

The instructor shall provide verification of the license or certificate. A copy of the instructor's educator license will establish verification.

(Source: P.A. 99-504, eff. 1-1-17.)

(225 ILCS 320/19) (from Ch. 111, par. 1118)

Sec. 19. The Director, after notice and opportunity for hearing to the applicant, license holder, or registrant, may deny, suspend, or revoke a license or registration in any case in which he or she finds that there has been a substantial failure to comply with the provisions of this Act or the standards, rules, and regulations established under this Act.

The Director, after notice and opportunity for hearing, may assess civil penalties to any person for any violation of Section 35.5 of this Act or any rule adopted pursuant to Section 35.5 of this Act.

Notice shall be provided by certified mail or by personal service setting forth the particular reasons for the proposed action and fixing a date, not less than 20 days from the date of the mailing or service, within which time the applicant or license holder must request in writing a hearing. Failure to serve upon the Department a request for hearing in writing within the time provided in the notice shall constitute a waiver of the person's right to an administrative hearing.

The hearing shall be conducted by the Director or by an individual designated in writing by the Director as a hearing officer to conduct the hearing. The Director or hearing officer shall give written notice of the time and place of the hearing, by certified mail or personal service, to the applicant, license holder, or registrant at least 10 days prior to the hearing. On the basis of the hearing, or upon default of the applicant, license holder, or registrant, the Director shall make a determination specifying his or her findings and conclusions. A copy of the determination shall be sent by certified mail or served personally upon the applicant, license holder, or registrant. The decision of the Director shall be final on issues of fact and final in all respects unless judicial review is sought as provided in this Act.

The procedure governing hearings authorized by this Section shall be in accordance with rules promulgated by the Department. A full and complete record shall be kept of all proceedings, including the notice of hearing, complaint, and all other documents in the nature of pleadings, written motions filed in the proceedings, and the report and orders of the Director and hearing officer.

The Department at its expense shall provide a court reporter to take testimony. Technical error in the proceedings before the Department or hearing officer or their failure to observe the technical rules of evidence shall not be grounds for the reversal of any administrative decision unless it appears to the Court that such error or failure materially affects the rights of any party and results in substantial injustice to them.

The Department or hearing officer, or any parties in an investigation or hearing before the Department, may cause the depositions of witnesses within the State to be taken in the manner prescribed by law for depositions in civil actions in courts of this State, and compel the attendance of witnesses and the production of books, papers, records, or memoranda.

The Department shall not be required to certify any record to the Court or file any answer in Court or otherwise appear in any Court in a judicial review proceeding, unless there is filed in the Court with the complaint a receipt from the Department acknowledging payment of the costs of furnishing and certifying the record. Such cost shall be paid by the party requesting a copy of the record. Failure on the part of the person requesting a copy of the record to pay the cost shall be grounds for dismissal of the action.

(Source: P.A. 91-678, eff. 1-26-00.)

(225 ILCS 320/29.6 new)

Sec. 29.6. Civil penalties for violations. Any person who violates any provision of Section 35.5 of this Act or any rule adopted pursuant to Section 35.5 of this Act shall, in addition to any other penalty provided in this Act, be subject to a civil penalty of $100 per day per violation. Civil penalties collected pursuant to this Section shall be deposited into the Plumbing Licensure and Program Fund.

(225 ILCS 320/35.5 new)

Sec. 35.5. Identification of lead hazards at high-risk facilities.

(a) For the purposes of this Section:

"Day care center" means any day care center as defined in Section 2.09 of the Child Care Act of 1969.

"Day care homes" means any day care home as defined in Section 2.18 of the Child Care Act of 1969.

"Group day care home" means any group day care home as defined in Section 2.20 of the Child Care Act of 1969.

"High-risk facility" means (i) any day care center, day care home and group day care home that was constructed in whole or part before January 1, 1987, and (ii) any school that was constructed in whole or part before January 1, 1987.

"Lead hazard" has the meaning ascribed to that term in Section 2 of the Lead Poisoning Prevention Act.

"School" means any public, private, charter, or nonpublic day or residential educational institution that provides education from pre-kindergarten through grade 5.

(b) To protect children and other members of the public from any threat to public health that might be posed by lead in a school or child care facility's plumbing, the Department shall, as soon as practicable after the effective date of this amendatory Act of the 99th General Assembly but no later than June 30, 2018, adopt rules that:

(1) establish a program to identify, in each high-risk facility in the State, plumbing that is a lead hazard;

(2) require the water distribution system material inventories that are developed under subsection (c) of Section 17.11 of the Environmental Protection Act to be made publicly accessible; and

(3) require the operator of each high-risk facility to develop a water quality management plan that, at a minimum, does the following:

(A) describes comprehensively the facilities' potable water systems;

(B) sets forth a detailed set of procedures and practices to identify lead hazards and minimize lead levels in the facility's potable water system, taking into account, among other things, the results of testing conducted pursuant to Section 17.11 of the Environmental Protection Act; and

(C) requires the operator of each high-risk facility to promptly provide an individual notification, via written or electronic communication, to the parents or legal guardians of all enrolled students at the facility, as well as all occupants of the facility, of the laboratory analysis of any water sampling conducted for lead in the facility.

(4) require licensed day care centers, day care homes and group day care homes that serve children under the age of 6 to assess levels of lead in such centers and homes. Such rules shall, at a minimum, include provisions regarding testing parameters, the notification of sampling results, and training requirements for lead exposure.

Section 20. The Child Care Act of 1969 is amended by adding Section 5.9 as follows:

(225 ILCS 10/5.9 new)

Sec. 5.9. Lead testing of water in licensed day care centers, day care homes and group day care homes. The Department shall require that all rules that the Department of Public Health adopts pursuant to paragraph (4) of subsection (b) of Section 35.5 of the Illinois Plumbing License Law be met through the licensing process for day care centers, day care homes, and group day care homes.

Section 25. The Environmental Protection Act is amended by changing Sections 19.3 and 19.4 and by adding Section 17.11 as follows:

(415 ILCS 5/17.11 new)

Sec. 17.11. Lead in drinking water prevention.

(a) The General Assembly finds that lead has been detected in the drinking water of schools and residences in this State. The General Assembly also finds that infants and young children may suffer adverse health effects and developmental delays as a result of exposure to even low levels of lead. The General Assembly further finds that it is in the best interests of the people of the State to require school districts or chief school administrators, or the designees of school districts or chief school administrators, and the owners and operators of community water systems to test for lead in drinking water in school buildings and provide written notification of the test results and for the owners and operators of community water systems to create a comprehensive lead service line inventory.

The purpose of this Section is to require (i) school districts or chief school administrators, or the designees of school districts or chief school administrators, and the owners and operators of community water systems to test for lead with the goal of providing school building occupants with an adequate supply of safe, potable water for consumption that is free of lead; (ii) school districts or chief school administrators, or the designees of school districts or chief school administrator, to notify the parents and legal guardians of enrolled students of the sampling results from their respective school buildings; (iii) the owners and operators of community water systems to notify occupants of residences and water bill recipients, if different from the occupants, of their individual tap sampling results; (iv) the owners and operators of community water systems to provide notice to occupants of potentially affected residences of construction or repair work on water mains, lead service lines, or water meters; and (v) owners and operators of community water systems to create a comprehensive lead service line inventory.

(b) For the purposes of this Section:

"Community water system" has the meaning ascribed to that term in 35 Ill. Adm. Code 611.101.

"Potentially affected residence" means any residence where water service is or may be temporarily interrupted or shut off by or on behalf of an owner or operator of a community water system because construction or repair work is to be performed by or on behalf of the owner or operator of a community water system on or affecting a water main, service line, or water meter.

"School building" means any facility or portion thereof that may be occupied by more than 10 children or students, pre-kindergarten through grade 5, within (a) a school district or (b) a public, private, charter, or nonpublic day or residential educational institution, that receives water from a community water system.

"Source of potable water" means the point at which non-bottled water that may be ingested by children or used for food preparation exits any tap, faucet, drinking fountain, wash basin in a classroom occupied by children or students under grade 1, or similar point of use provided, however, that all (a) bathroom sinks and (b) wash basins used by janitorial staff are excluded from this definition.

(c) Each school district or chief school administrator, or the designee of the school district or chief school administrator, and the corresponding owner and operator of a community water system shall test each source of potable water in a school building for lead contamination as required in this subsection.

(1) Each school district or chief school administrator, or the designee of the school district or chief school administrator, shall collect a minimum of three 250 milliliter sequential samples of water from each source of potable water located at each corresponding school building. The water corresponding to the first 250 milliliter sample from each source of potable water shall have been standing in the plumbing pipes for at least 8 hours, but not more than 18 hours, without any flushing of the source of potable water before sample collection. Samples shall be collected pursuant to such other specifications as the Agency may determine appropriate.

(2) Each school district or chief school administrator, or the designee of the school district or chief school administrator, shall submit (A) the samples to an Agency-accredited laboratory for analysis for lead in accordance with the instructions supplied by the owners and operators of the community water system and (B) the written sampling results to the Agency and the Department of Public Health within 7 business days of receipt of the results.

(3) If any sample tests positive for lead, the school district or chief school administrator, or the designee of the school district or chief school administrator, shall promptly provide an individual notification of the sampling results, via written or electronic communication, to the parents or legal guardians of all enrolled students of the sampling results and include the following information: the corresponding sampling location within the school building and the United States Environmental Protection Agency's website for information about lead in drinking water.

(4) Sampling and analysis shall be completed by the following applicable deadlines: for school buildings constructed prior to January 1, 1987, by December 31, 2017; and for school buildings constructed on and after January 1, 1987, by December 31, 2018.

(5) The owner and operator of the community water system shall (A) provide each corresponding school district or chief school administrator, or the designee of the school district or chief school administrator, with the (i) sampling instructions, (ii) equipment necessary to collect all samples required under this subsection from the school buildings of each such school district or chief school administrator, or the designee of the school district or chief school administrator, and (iii) instructions for delivering the samples to an Agency-accredited laboratory; and (B) pay for the total cost of the laboratory analysis of all such required samples.

(6) The school district or chief school administrator, or the designee of the school district or chief school administrator, may provide written notice to the owner and operator of the corresponding community water system that it will undertake all responsibilities under this subsection. If the school district or chief school administrator, or the designee of the school district or chief school administrator, provides such written notice, the owner and operator of the corresponding community water system shall be exempt from the requirements of this subsection.

(7) A school district or chief school administrator, or the designee of the school district or chief school administrator, may seek a waiver of the requirements of this subsection from the Agency, in consultation with the Department of Public Health, if (A) the school district or chief school administrator, or the designee of the school district or chief school administrator, collected at least one 250 milliliter sample of water from each source of potable water that had been standing in the plumbing pipes for at least 6 hours and that was collected without flushing the source of potable water before collection, (B) an Agency-accredited laboratory analyzed the samples, (C) test results were obtained prior to the effective date of this amendatory Act of the 99th General Assembly, but after January 1, 2013, and (D) test results were submitted to the Agency and the Department of Public Health within 120 days of the effective date of this amendatory Act of the 99th General Assembly.

(8) Lead sampling results obtained shall not be used for purposes of determining compliance with the Board's rules that implement the national primary drinking water regulations for lead and copper.

(d) The owner or operator of each community water system in the State shall develop a water distribution system material inventory that shall be submitted to the Agency and the Department of Public Health on or before April 15 of each year. In addition to meeting the requirements for water distribution system material inventories that are mandated by the United States Environmental Protection Agency, each water distribution system material inventory shall identify:

(1) all known lead service lines within or connected to its community water system distribution system, including privately owned lead service lines;

(2) the lead service lines that were added to the inventory after the previous year's submission;

(3) the total number of service lines within the community water supply distribution system;

(4) the percentage of service lines that are known to contain lead;

(5) the percentage of service lines that are known to be of a material other than lead; and

(6) the percentage of service lines added to the inventory after the previous submission of the annual lead service line inventory.

(e) Beginning January 1, 2017, when conducting routine inspections of community water systems as required under this Act, the Agency may conduct a separate audit to identify progress that the community water system has made toward completing the water distribution system material inventories required under subsection (d) of this Section.

(f) The owner or operator of a community water system shall provide a notice of the individual tap sampling results to the persons served by the water system at the specific sampling site from which the sample was taken (e.g., the occupants of the residence where the tap was tested) and to the persons who receive the water bills for each residence. In preparing such notice and providing it to the persons required under this subsection, the owner or operator of a community water system shall comply with the requirements set forth in 35 Ill. Adm. Code 611.355(d)(2)-(4). The notification described in this subsection (f) is in addition to any other notification that may be required.

(g) The owner or operator of the community water system shall provide notice of construction or repair work on a water main service line, or water meter in accordance with the following requirements:

(1) Within 14 days prior to beginning planned work to repair or replace any water mains or lead service lines, the owner or operator of a community water system shall notify, through an individual notice, each occupant of each potentially affected residence of the planned work. In cases where a community water system must perform construction or repair work on an emergency basis or where such work is not scheduled at least 14 days prior to work taking place, the community water system shall notify each occupant of each potentially affected residence as soon as reasonably possible. When work is to repair or replace a water meter, the notification shall be provided at the time the work is initiated.

(2) Such written notification shall include, at a minimum:

(A) a warning that the work may result in sediment, possibly containing lead, in the residence's water supply; and

(B) information concerning best practices for preventing the consumption of any lead in drinking water, including a recommendation to flush water lines during and after the completion of the repair or replacement work and to clean faucet aerator screens; and

(C) information regarding the dangers of lead in young children.

(3) To the extent that the owner or operator of a community water system serves non-English speaking consumers, the notification must contain information in the appropriate languages regarding the importance of the notice, and it must contain a telephone number or address where a person served may contact the owner or operator of the community water system to obtain a translated copy of the notification or to request assistance in the appropriate language.

(4) The notification requirements in this subsection (g) do not apply to work performed on water mains that are used to transmit treated water between community water systems and have no service connections.

(415 ILCS 5/19.3) (from Ch. 111 1/2, par. 1019.3)

Sec. 19.3. Water Revolving Fund.

(a) There is hereby created within the State Treasury a Water Revolving Fund, consisting of 3 interest-bearing special programs to be known as the Water Pollution Control Loan Program, the Public Water Supply Loan Program, and the Loan Support Program, which shall be used and administered by the Agency.

(b) The Water Pollution Control Loan Program shall be used and administered by the Agency to provide assistance for the following purposes:

(1) to accept and retain funds from grant awards, appropriations, transfers, and payments of interest and principal;

(2) to make direct loans at or below market interest rates and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit to finance the construction of treatments works, including storm water treatment systems that are treatment works, and projects that fulfill federal State Revolving Fund grant requirements for a green project reserve;

(2.5) with respect to funds provided under the American Recovery and Reinvestment Act of 2009:

(A) to make direct loans at or below market interest rates to any eligible local government unit and to provide additional subsidization to any eligible local government unit, including, but not limited to, forgiveness of principal, negative interest rates, and grants;

(B) to make direct loans at or below market interest rates to any eligible local government unit to buy or refinance debt obligations for treatment works incurred on or after October 1, 2008; and

(C) to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants for treatment works incurred on or after October 1, 2008;

(3) to make direct loans at or below market interest rates and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit to buy or refinance debt obligations for costs incurred after March 7, 1985, for the construction of treatment works, including storm water treatment systems that are treatment works, and projects that fulfill federal State Revolving Fund grant requirements for a green project reserve;

(3.5) to make loans, including, but not limited to, loans through a linked deposit program, at or below market interest rates for the implementation of a management program established under Section 319 of the Federal Water Pollution Control Act, as amended;

(4) to guarantee or purchase insurance for local obligations where such action would improve credit market access or reduce interest rates;

(5) as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the State or any political subdivision or instrumentality thereof, if the proceeds of such bonds will be deposited in the Fund;

(6) to finance the reasonable costs incurred by the Agency in the administration of the Fund;

(7) to transfer funds to the Public Water Supply Loan Program; and

(8) notwithstanding any other provision of this subsection (b), to provide, in accordance with rules adopted under this Title, any other financial assistance that may be provided under Section 603 of the Federal Water Pollution Control Act for any other projects or activities eligible for assistance under that Section or federal rules adopted to implement that Section.

(c) The Loan Support Program shall be used and administered by the Agency for the following purposes:

(1) to accept and retain funds from grant awards and appropriations;

(2) to finance the reasonable costs incurred by the Agency in the administration of the Fund, including activities under Title III of this Act, including the administration of the State construction grant program;

(3) to transfer funds to the Water Pollution Control Loan Program and the Public Water Supply Loan Program;

(4) to accept and retain a portion of the loan repayments;

(5) to finance the development of the low interest loan programs for water pollution control and public water supply projects;

(6) to finance the reasonable costs incurred by the Agency to provide technical assistance for public water supplies; and

(7) to finance the reasonable costs incurred by the Agency for public water system supervision programs, to administer or provide for technical assistance through source water protection programs, to develop and implement a capacity development strategy, to delineate and assess source water protection areas, and for an operator certification program in accordance with Section 1452 of the federal Safe Drinking Water Act.

(d) The Public Water Supply Loan Program shall be used and administered by the Agency to provide assistance to local government units and privately owned community water supplies for public water systems as defined in 40 CFR 141.2 and 40 CFR 35.3505 supplies for the following public purposes:

(1) to accept and retain funds from grant awards, appropriations, transfers, and payments of interest and principal;

(2) to make direct loans at or below market interest rates and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit or to any eligible privately owned community water supply to finance the construction of water supplies and projects that fulfill federal State Revolving Fund grant requirements for a green project reserve;

(2.5) with respect to funds provided under the American Recovery and Reinvestment Act of 2009:

(A) to make direct loans at or below market interest rates to any eligible local government unit or to any eligible privately owned community water supply, and to provide additional subsidization to any eligible local government unit or to any eligible privately owned community water supply, including, but not limited to, forgiveness of principal, negative interest rates, and grants;

(B) to buy or refinance the debt obligation of a local government unit for costs incurred on or after October 1, 2008; and

(C) to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants for a local government unit for costs incurred on or after October 1, 2008;

(3) to make direct loans at or below market interest rates and to provide additional subsidization, including, but not limited to, forgiveness of principal, negative interest rates, and grants, to any eligible local government unit or to any eligible privately owned community water supply to buy or refinance debt obligations for costs incurred on or after July 17, 1997, for the construction of water supplies and projects that fulfill federal State Revolving Fund requirements for a green project reserve;

(4) to guarantee local obligations where such action would improve credit market access or reduce interest rates;

(5) as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the State or any political subdivision or instrumentality thereof, if the proceeds of such bonds will be deposited into the Fund; and

(6) to transfer funds to the Water Pollution Control Loan Program; and .

(7) notwithstanding any other provision of this subsection (d), to provide any other financial assistance that may be provided under Section 1452 of the federal Safe Drinking Water Act for any expenditures eligible for assistance under that Section or federal rules adopted to implement that Section.

(e) The Agency is designated as the administering agency of the Fund. The Agency shall submit to the Regional Administrator of the United States Environmental Protection Agency an intended use plan which outlines the proposed use of funds available to the State. The Agency shall take all actions necessary to secure to the State the benefits of the federal Water Pollution Control Act and the federal Safe Drinking Water Act, as now or hereafter amended.

(f) The Agency shall have the power to enter into intergovernmental agreements with the federal government or the State, or any instrumentality thereof, for purposes of capitalizing the Water Revolving Fund. Moneys on deposit in the Water Revolving Fund may be used for the creation of reserve funds or pledged funds that secure the obligations of repayment of loans made pursuant to this Section. For the purpose of obtaining capital for deposit into the Water Revolving Fund, the Agency may also enter into agreements with financial institutions and other persons for the purpose of selling loans and developing a secondary market for such loans. The Agency shall have the power to create and establish such reserve funds and accounts as may be necessary or desirable to accomplish its purposes under this subsection and to allocate its available moneys into such funds and accounts. Investment earnings on moneys held in the Water Revolving Fund, including any reserve fund or pledged fund, shall be deposited into the Water Revolving Fund.

(Source: P.A. 98-782, eff. 7-23-14; 99-187, eff. 7-29-15.)

(415 ILCS 5/19.4) (from Ch. 111 1/2, par. 1019.4)

Sec. 19.4. Regulations; priorities.

(a) The Agency shall have the authority to promulgate regulations for the administration of this Title, including, but not limited to, rules setting forth procedures and criteria concerning loan applications and the issuance of loans. For loans to units of local government, the regulations shall include, but need not be limited to, the following elements:

(1) loan application requirements;

(2) determination of credit worthiness of the loan applicant;

(3) special loan terms, as necessary, for securing the repayment of the loan;

(4) assurance of payment;

(5) interest rates;

(6) loan support rates;

(7) impact on user charges;

(8) eligibility of proposed construction;

(9) priority of needs;

(10) special loan terms for disadvantaged communities;

(11) maximum limits on annual distributions of funds to applicants or groups of applicants;

(12) penalties for noncompliance with loan requirements and conditions, including stop-work orders, termination, and recovery of loan funds; and

(13) indemnification of the State of Illinois and the Agency by the loan recipient.

(b) The Agency shall have the authority to promulgate regulations to set forth procedures and criteria concerning loan applications for loan recipients other than units of local government. In addition to all of the elements required for units of local government under subsection (a), the regulations shall include, but need not be limited to, the following elements:

(1) types of security required for the loan;

(2) types of collateral, as necessary, that can be pledged for the loan; and

(3) staged access to fund privately owned community water supplies.

(c) Rules adopted under this Title shall also include, but shall not be limited to, criteria for prioritizing the issuance of loans under this Title according to applicant need. Priority in making loans from the Public Water Supply Loan Program must first be given to local government units and privately owned community water supplies that need to make capital improvements to protect human health and to achieve compliance with the State and federal primary drinking water standards adopted pursuant to this Act and the federal Safe Drinking Water Act, as now and hereafter amended. Rules for prioritizing loans from the Water Pollution Control Loan Program may include, but shall not be limited to, criteria designed to encourage green infrastructure, water efficiency, environmentally innovative projects, and nutrient pollution removal.

(d) The Agency shall have the authority to promulgate regulations to set forth procedures and criteria concerning loan applications for funds provided under the American Recovery and Reinvestment Act of 2009. In addition, due to time constraints in the American Recovery and Reinvestment Act of 2009, the Agency shall adopt emergency rules as necessary to allow the timely administration of funds provided under the American Recovery and Reinvestment Act of 2009. Emergency rules adopted under this subsection (d) shall be adopted in accordance with Section 5-45 of the Illinois Administrative Procedure Act.

(e) The Agency may adopt rules to create a linked deposit loan program through which loans made pursuant to paragraph (3.5) of subsection (b) of Section 19.3 may be made through private lenders. Rules adopted under this subsection (e) shall include, but shall not be limited to, provisions requiring private lenders, prior to disbursing loan proceeds through the linked deposit loan program, to verify that the loan recipients have been approved by the Agency for financing under paragraph (3.5) of subsection (b) of Section 19.3.

(Source: P.A. 98-782, eff. 7-23-14.)

Section 99. Effective date. This Act takes effect upon becoming law.".