Full Text of HB6419 96th General Assembly
HB6419ham002 96TH GENERAL ASSEMBLY
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Rep. Fred Crespo
Filed: 3/23/2010
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| AMENDMENT TO HOUSE BILL 6419
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| AMENDMENT NO. ______. Amend House Bill 6419 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 1. Short title. This Act may be cited as the | 5 |
| School District Intergovernmental Cooperation Renewable Energy | 6 |
| Act. | 7 |
| Section 5. Findings. The General Assembly finds that there | 8 |
| is a need to promote the use of renewable energy resources, | 9 |
| including facilities designed to convert wind or solar power to | 10 |
| energy, and to promote employment in the construction and | 11 |
| operation of such facilities, and further finds that a means of | 12 |
| meeting such need is to authorize school districts to join | 13 |
| together to acquire and construct facilities for such purposes. | 14 |
| Section 10. Definitions. In this Act: | 15 |
| "Agency" means a joint action agency organized and |
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| operating under this Act.
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| "Applicable law" means any provision of law, including this | 3 |
| Act, authorizing school districts to issue bonds as that term | 4 |
| is defined in the Local Government Debt Reform Act.
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| "Board" means the board of directors of an agency organized | 6 |
| under this Act.
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| "Bond" means a bond as such term is defined in the Local | 8 |
| Government Debt Reform Act issued by an agency payable from one | 9 |
| or more of the agency's revenue sources and other sources as | 10 |
| the agency may lawfully pledge, which sources may include | 11 |
| school district bonds or proceeds or payments to be made | 12 |
| pursuant to an intergovernmental agreement.
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| "Eligible project" means any land or rights in land, plant, | 14 |
| works, system, facility, machinery, intellectual property, or | 15 |
| other real or personal property of any nature whatsoever, | 16 |
| together with all parts thereof and appurtenances thereto, used | 17 |
| or useful in the generation, production, such distribution or | 18 |
| transmission as may be required in a relevant electric service | 19 |
| agreement, purchase, sale, exchange, or interchange of | 20 |
| electrical energy derived from renewable energy sources | 21 |
| including wind, solar power, and other renewable sources, and | 22 |
| in the acquisition, extraction, conversion, transportation, | 23 |
| storage, or reprocessing of ancillary fuel of any kind for any | 24 |
| of those purposes, or any interest in, or right to the use, | 25 |
| services, output, or capacity of any plant, works, system, or | 26 |
| facilities.
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| "Governing body" means the school board having charge of | 2 |
| the corporate affairs of a school district.
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| "Intergovernmental agreement" means the agreement by which | 4 |
| an agency is formed by school districts pursuant to this Act.
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| "Members" means the school districts joining pursuant to | 6 |
| intergovernmental agreement to organize an agency under this | 7 |
| Act.
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| "Resolution" means a resolution duly adopted by a governing | 9 |
| body.
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| "Revenue source" means any revenue source as such term is | 11 |
| defined in the Local Government Debt Reform Act.
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| "School district" means a combined elementary district, a | 13 |
| combined high school district, a combined unit district, a unit | 14 |
| district, a combined high school unit district, an elementary | 15 |
| district, or an optional elementary unit district organized and | 16 |
| operating under the School Code of the State of Illinois, but | 17 |
| does not include any office, officer, department, division, | 18 |
| bureau, board, commission, or similar agency of the State of | 19 |
| Illinois.
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| "School district bond" means any bond as such term is | 21 |
| defined in the Local Government Debt Reform Act authorized or | 22 |
| issued by or on behalf of a school district under applicable | 23 |
| law.
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| Section 15. Powers supplemental. The provisions of this Act | 25 |
| are intended to be supplemental and, in addition to all other |
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| powers or authorities granted to any school district, shall be | 2 |
| construed liberally and shall not be construed as a limitation | 3 |
| of any power or authority otherwise granted. | 4 |
| Section 20. Actions by resolution. All actions to be taken | 5 |
| by a school district or an agency pursuant to this Act shall be | 6 |
| fully effective if taken by resolution. | 7 |
| Section 25. Agency status. An agency organized under this | 8 |
| Act shall be a unit of local government of the State of | 9 |
| Illinois and a body politic and corporate. | 10 |
| Section 30. Organization. Any 2 or more school districts, | 11 |
| whether contiguous or noncontiguous, may form an agency by the | 12 |
| execution of an intergovernmental agreement authorized by | 13 |
| resolution adopted by the governing body of each school | 14 |
| district. The intergovernmental agreement shall state or may | 15 |
| state, as applicable, the following:
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| (1) the name of the agency and the date of its | 17 |
| establishment, which may be by reference to a date or the | 18 |
| dates of the resolutions adopted by the governing bodies, | 19 |
| and the duration of its existence, which may be perpetual;
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| (2) the names of the school districts that have adopted | 21 |
| the intergovernmental agreement and constitute the initial | 22 |
| members;
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| (3) the names and addresses of the persons initially |
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| appointed in the resolutions adopting the | 2 |
| intergovernmental agreement to serve as initial directors | 3 |
| on the board and provision for the organizational meeting | 4 |
| of the agency;
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| (4) provision for the terms of office of the directors | 6 |
| and for alternate directors, if so provided, but such | 7 |
| directors and alternate directors shall always be selected | 8 |
| and vacancies in their offices declared and filled by | 9 |
| resolutions adopted by the governing body of the respective | 10 |
| school districts;
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| (5) if so provided, provision for weighted voting among | 12 |
| the school districts or by the directors;
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| (6) the location by city, village, or incorporated town | 14 |
| in the State of Illinois of the principal office of the | 15 |
| agency;
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| (7) provision for amendment of the intergovernmental | 17 |
| agreement;
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| (8) if provided, initial funding for the agency, which | 19 |
| may include binding agreements of the school districts to | 20 |
| provide money or to issue school district bonds for the | 21 |
| benefit of the agency;
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| (9) provisions for the disposition, division, or | 23 |
| distribution of obligations, property, and assets of the | 24 |
| agency upon dissolution; and
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| (10) any other provisions for regulating the business | 26 |
| of the agency or the conduct of its affairs consistent with |
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| this Act.
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| Section 35. Officers; board; bylaws. | 3 |
| (a) At the organizational meeting of the board, the | 4 |
| directors shall elect from their members a presiding officer to | 5 |
| preside over the meetings of the board and an alternate | 6 |
| presiding officer and may elect an executive board. The board | 7 |
| shall determine and designate in the agency's bylaws the titles | 8 |
| for the presiding officers. The directors shall also elect a | 9 |
| secretary and treasurer, who need not be directors. The board | 10 |
| may select such other officers, employees, and agents as deemed | 11 |
| to be necessary, who need not be directors or residents of any | 12 |
| of the school districts that are members. The board may | 13 |
| designate appropriate titles for all other officers, | 14 |
| employees, and agents. All persons selected by the board shall | 15 |
| hold their respective offices at the pleasure of the board, and | 16 |
| give bond as may be required by the board.
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| (b) The board is the corporate authority of the agency and | 18 |
| shall exercise all the powers and manage and control all of the | 19 |
| affairs and property of the agency. The board shall have full | 20 |
| power to pass all necessary resolutions and rules for the | 21 |
| proper management and conduct of the business of the agency and | 22 |
| for carrying into effect the objects for which the agency was | 23 |
| established. The board shall have not less than one meeting | 24 |
| each year for the election of officers and the transaction of | 25 |
| any other business. Unless otherwise provided by this Act, the |
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| intergovernmental agreement, or the bylaws, an act of the | 2 |
| majority of the directors present at a meeting at which a | 3 |
| quorum is present is required for an act of the board.
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| (c) The board shall adopt bylaws that may include without | 5 |
| limitation the following provisions:
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| (1) the rights and obligations of members consistent | 7 |
| with the intergovernmental agreement and this Act;
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| (2) if not governed in the intergovernmental | 9 |
| agreement, then the manner of adding new members and the | 10 |
| rights and obligations of the members;
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| (3) the time, place, and date of the regular meeting or | 12 |
| meetings and the procedures for calling special meetings of | 13 |
| the board;
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| (4) procedural rules:
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| (5) the composition, powers, and responsibilities of | 16 |
| any committee or executive board;
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| (6) the criteria as called for in item (20) of Section | 18 |
| 55 of this Act; and
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| (7) other rules or provisions for regulating the | 20 |
| affairs of the agency as the board shall determine to be | 21 |
| advisable.
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| Section 40. Filing. Within 3 months after the | 23 |
| organizational meeting, the board shall cause a certified copy | 24 |
| of the intergovernmental agreement to be filed with the | 25 |
| Secretary of State of Illinois. The Secretary of State shall |
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| accept such filing and issue a certificate of approval over his | 2 |
| or her signature and the Great Seal of the State. The Secretary | 3 |
| of State shall make and keep a register of agencies established | 4 |
| under this Act. | 5 |
| Section 45. Place of business. Every agency shall maintain | 6 |
| an office in the State of Illinois to be known as its principal | 7 |
| office. When an agency desires to change the location of such | 8 |
| office, it shall file with the Secretary of State a certificate | 9 |
| of change of location, stating the new address and the | 10 |
| effective date of change. Meetings of the board may be held at | 11 |
| any place within the State of Illinois designated by the board | 12 |
| after notice. | 13 |
| Section 50. Lawful expense of school district. Each member | 14 |
| shall have full power and authority to appropriate money from | 15 |
| its operation and maintenance fund, by whatever name now or | 16 |
| hereafter known, for the payment of the expenses of the agency | 17 |
| and of its representative in exercising its functions as a | 18 |
| member of the agency, which expenses may include payment of | 19 |
| principal of and interest on bonds of the agency for a period | 20 |
| not greater than 40 years after the dated date of any bonds. | 21 |
| Each member shall have full power and authority, subject to the | 22 |
| provisions of applicable law, to agree to the issuance and | 23 |
| delivery of school district bonds to aid the agency. |
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| Section 55. Powers and duties generally. An agency shall | 2 |
| have all the powers and duties enumerated in this Section in | 3 |
| furtherance of the purposes of this Act. In the exercise | 4 |
| thereof it shall be deemed to be performing an essential | 5 |
| governmental function and exercising a part of the sovereign | 6 |
| powers of the State of Illinois, separate and distinct from | 7 |
| member school districts, and shall have the privileges, | 8 |
| immunities, and rights of a public body politic and corporate, | 9 |
| municipal corporation, and unit of local government, but shall | 10 |
| not have taxing power. All powers of the agency shall be | 11 |
| exercised by its board unless otherwise provided by the bylaws. | 12 |
| (1) An agency may plan, finance, acquire, construct, | 13 |
| reconstruct, own, lease, operate, maintain, repair, | 14 |
| improve, extend, or otherwise participate in, individually | 15 |
| or jointly with other persons or other entities of any | 16 |
| type, one or more eligible projects, proposed, existing, or | 17 |
| under construction, within or without the State of | 18 |
| Illinois, acquire any interest in or any right to products | 19 |
| and services of an eligible project, purchase, own, sell, | 20 |
| dispose of, or otherwise participate in securities issued | 21 |
| in connection with the financing of an eligible project or | 22 |
| any portion thereof, create such subsidiary entity or | 23 |
| entities of any type as may be necessary or desirable, and | 24 |
| may act as agent, or designate one or more persons, public | 25 |
| agencies, or other entities of any type, whether or not | 26 |
| participating in an eligible project, to act as its agent, |
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| in connection with the planning, financing, acquisition, | 2 |
| construction, reconstruction, ownership, lease, operation, | 3 |
| maintenance, repair, extension, or improvement of the | 4 |
| eligible project.
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| (2) An agency may investigate the desirability of and | 6 |
| necessity for additional means of providing electrical | 7 |
| energy from wind sources of any kind for such purpose and | 8 |
| make studies, surveys, and estimates as may be necessary to | 9 |
| determine its feasibility and cost.
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| (3) An agency may cooperate with other persons, public | 11 |
| agencies, or other entities of any type in the development | 12 |
| of means of providing electrical energy from wind sources | 13 |
| of any kind for those purposes and give assistance with | 14 |
| personnel and equipment in any eligible project.
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| (4) An agency may structure the ownership and | 16 |
| investment in an eligible project in such a way as to | 17 |
| maximize the use of any available United States federal | 18 |
| incentives for such projects, including, but not limited | 19 |
| to, New Markets Tax Credits under Section 45D of the | 20 |
| Internal Revenue Code of 1986, as amended, or any successor | 21 |
| provision.
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| (5) An agency may apply for consents, authorizations, | 23 |
| or approvals required for any eligible project within its | 24 |
| powers and take all actions necessary to comply with the | 25 |
| conditions thereof.
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| (6) An agency may perform any act authorized by this |
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| Act through, or by means of, its officers, agents, or | 2 |
| employees or by contract with others, including without | 3 |
| limitation the employment of engineers, architects, | 4 |
| attorneys, appraisers, financial advisors, and such other | 5 |
| consultants and employees as may be required in the | 6 |
| judgment of the agency, and fix and pay their compensation | 7 |
| from funds available to the agency.
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| (7) An agency may, individually or jointly with other | 9 |
| persons, public agencies, or other entities of any type, | 10 |
| acquire, hold, use, and dispose of income, revenues, funds, | 11 |
| and money.
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| (8) An agency may, individually or jointly with other | 13 |
| persons, public agencies, or other entities of any type, | 14 |
| acquire, own, hire, use, operate and dispose of personal | 15 |
| property and any interest therein.
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| (9) An agency may, individually or jointly with other | 17 |
| persons, public agencies, or other entities of any type, | 18 |
| acquire, own, use, lease as lessor or lessee, operate, and | 19 |
| dispose of real property and interests in real property, | 20 |
| including eligible projects existing, proposed, or under | 21 |
| construction, and make improvements thereon.
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| (10) An agency may grant the use by franchise, lease, | 23 |
| or otherwise and make charges for the use of any property | 24 |
| or facility owned or controlled by it.
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| (11) An agency may borrow money and issue negotiable | 26 |
| bonds, secured or unsecured, in accordance with this Act.
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| (12) An agency may invest money of the agency not | 2 |
| required for immediate use, including proceeds from the | 3 |
| sale of any bonds, in such obligations, securities, and | 4 |
| other investments as authorized by the provisions of the | 5 |
| Public Funds Investment Act. | 6 |
| (13) An agency may determine the location and character | 7 |
| of, and all other matters in connection with, any and all | 8 |
| eligible projects it is authorized to acquire, hold, | 9 |
| establish, effectuate, operate, or control.
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| (14) An agency may contract with any persons, public | 11 |
| agencies, or other entities of any type for the planning, | 12 |
| development, construction, or operation of any eligible | 13 |
| project or for the sale, transmission, or distribution of | 14 |
| the products and services of any eligible project, or for | 15 |
| any interest therein or any right to the products and | 16 |
| services thereof, on such terms and for such period not in | 17 |
| excess of 50 years of time as its board shall determine.
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| (15) An agency may enter into any contract or agreement | 19 |
| necessary, appropriate, or incidental to the effectuation | 20 |
| of its lawful purposes and the exercise of the powers | 21 |
| granted by this Act for a period not in excess of 50 years | 22 |
| in time, including without limitation contracts or | 23 |
| agreements for the purchase, sale, exchange, interchange, | 24 |
| wheeling, pooling, transmission, distribution, or storage | 25 |
| of electrical energy and fuel of any kind for any such | 26 |
| purposes, within and without the State of Illinois, in such |
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| amounts as it shall determine to be necessary and | 2 |
| appropriate to make the most effective use of its powers | 3 |
| and to meet its responsibilities, on such terms and for | 4 |
| such period of time as its board determines. Any such | 5 |
| contract or agreement may include provisions for | 6 |
| requirements purchases, restraints on resale or other | 7 |
| dealings, exclusive dealing, pricing, territorial | 8 |
| division, and other conduct or arrangements that may have | 9 |
| an anti-competitive effect.
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| (16) An agency may procure insurance against any losses | 11 |
| in connection with its property, operations, or assets in | 12 |
| such amounts and from such insurers as it deems desirable | 13 |
| or may self-insure or enter into pooled insurance | 14 |
| arrangements with other school districts against such | 15 |
| losses.
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| (17) An agency may contract for and accept any gifts or | 17 |
| grants or loans of funds or property or financial or other | 18 |
| aid in any form from any source and may comply, subject to | 19 |
| the provisions of this Act, with the terms and conditions | 20 |
| thereof.
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| (18) An agency may mortgage, pledge, or grant a | 22 |
| security interest in any or all of its real and personal | 23 |
| property to secure the payment of its bonds or contracts.
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| (19) That part of an eligible project owned by an | 25 |
| agency shall be exempt from property taxes.
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| (20) An agency shall not be subject to any taxes of the |
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| State of Illinois based on or measured by income or | 2 |
| receipts or revenue.
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| (21) An agency may adopt a corporate seal and may sue | 4 |
| and be sued.
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| (22) An agency may exercise all other powers not | 6 |
| inconsistent with the Constitution of the State of Illinois | 7 |
| or the United States Constitution, which powers may be | 8 |
| reasonably necessary or appropriate for or incidental to | 9 |
| effectuate its authorized purposes or to the exercise of | 10 |
| any of the powers enumerated in this Act.
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| Section 60. Bonds. An agency may issue bonds pursuant to | 12 |
| applicable law and the following provisions:
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| (1) An agency may from time to time issue its bonds in | 14 |
| such principal amounts as the agency shall deem necessary | 15 |
| to provide sufficient funds to carry out any of its | 16 |
| corporate purposes and powers, including without | 17 |
| limitation the acquisition, construction, or termination | 18 |
| of any eligible project to be owned or leased, as lessor or | 19 |
| lessee, by the agency, or the acquisition of any interest | 20 |
| therein or any right to the products or services thereof, | 21 |
| the funding or refunding of the principal of, redemption | 22 |
| premium, if any, and interest on, any bonds issued by it | 23 |
| whether or not such bonds or interest to be funded or | 24 |
| refunded have or have not become due, the payment of | 25 |
| engineering, legal and other expenses, together with |
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| interest for a period of 3 years or to a date one year | 2 |
| subsequent to the estimated date of completion of the | 3 |
| project, whichever period is longer, the establishment or | 4 |
| increase of reserves to secure or to pay such bonds or | 5 |
| interest thereon, the providing of working capital and the | 6 |
| payment of all other costs or expenses of the agency | 7 |
| incident to and necessary or convenient to carry out its | 8 |
| corporate purposes and powers.
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| (2) Every issue of bonds of the agency shall be payable | 10 |
| out of the revenues or funds available to the agency, | 11 |
| subject to any agreements with the holders of particular | 12 |
| bonds pledging any particular revenues or funds. An agency | 13 |
| may issue types of bonds as it may determine, including | 14 |
| bonds as to which the principal and interest are payable | 15 |
| exclusively from the revenues from one or more projects, or | 16 |
| from an interest therein or a right to the products and | 17 |
| services thereof, or from one or more revenue producing | 18 |
| contracts made by the agency, or its revenues generally. | 19 |
| Any such bonds may be additionally secured by a pledge of | 20 |
| any grant, subsidy, or contribution from any source or a | 21 |
| pledge of any income or revenues, funds, or moneys of the | 22 |
| agency from any source whatsoever.
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| (3) All bonds of an agency shall have all the qualities | 24 |
| of negotiable instruments under the laws of this State.
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| (4) Bonds of an agency shall be authorized by | 26 |
| resolution of its board and may be issued under such |
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| resolution or under a trust indenture or other security | 2 |
| agreement, in one or more series, and shall bear the date | 3 |
| or dates, mature at a time or times within the estimated | 4 |
| period of usefulness of the project involved and in any | 5 |
| event not more than 40 years after the date thereof, bear | 6 |
| interest at such rate or rates without regard to any | 7 |
| limitation in any other law, be in such denominations, be | 8 |
| in such form, either coupon or registered, carry such | 9 |
| conversion, registration, and exchange privileges, have | 10 |
| such rank or priority, be executed in such manner, be | 11 |
| payable in such medium of payment at such place or places | 12 |
| within or without the State of Illinois, be subject to such | 13 |
| terms of redemption with or without premium, and contain or | 14 |
| be subject to such other terms as the resolution, trust | 15 |
| indenture, or other security agreement may provide, and | 16 |
| shall not be restricted by the provisions of any other law | 17 |
| limiting the amounts, maturities, interest rates, or other | 18 |
| terms of obligations of units of local government or | 19 |
| private parties. The bonds shall be sold in a manner and at | 20 |
| such price as the board shall determine at private or | 21 |
| public sale.
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| (5) Bonds of an agency may be issued under the | 23 |
| provisions of this Act without obtaining the consent of any | 24 |
| department, division, commission, board, bureau, or agency | 25 |
| of the State of Illinois or of any member, except as may be | 26 |
| limited in an intergovernmental agreement, and without any |
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| other proceeding or the happening of any other condition or | 2 |
| occurrence except as specifically required by this Act.
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| (6) The resolution, trust indenture, or other security | 4 |
| agreement under which any bonds are issued shall constitute | 5 |
| a contract with the holders of the bonds and may contain | 6 |
| provisions, among others, prescribing:
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| (A) the terms and provisions of the bonds;
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| (B) the mortgage or pledge of and the grant of a | 9 |
| security interest in any real or personal property and | 10 |
| all or any part of the revenue from any project or any | 11 |
| revenue producing contract made by the agency to secure | 12 |
| the payment of bonds, subject to any agreements with | 13 |
| the holders of bonds which might then exist;
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| (C) the custody, collection, securing, | 15 |
| investments, and payment of any revenues, assets, | 16 |
| money, funds, or property with respect to which the | 17 |
| agency may have any rights or interest;
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| (D) the rates or charges for the products or | 19 |
| services rendered by the agency, the amount to be | 20 |
| raised by the rates or charges, and the use and | 21 |
| disposition of any or all revenue;
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| (E) the creation of reserves or sinking funds and | 23 |
| the regulation and disposition thereof;
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| (F) the purposes to which the proceeds from the | 25 |
| sale of any bonds then or thereafter to be issued may | 26 |
| be applied, and the pledge of revenues to secure the |
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| payment of the bonds;
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| (G) the limitations on the issuance of any | 3 |
| additional bonds, the terms upon which additional | 4 |
| bonds may be issued and secured, and the refunding of | 5 |
| outstanding bonds;
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| (H) the rank or priority of any bonds with respect | 7 |
| to any lien or security;
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| (I) the creation of special funds or moneys to be | 9 |
| held in trust or otherwise for operational expenses, | 10 |
| payment, or redemption of bonds, reserves or other | 11 |
| purposes, and the use and disposition of moneys held in | 12 |
| such funds;
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| (J) the procedure by which the terms of any | 14 |
| contract with or for the benefit of the holders of | 15 |
| bonds may be amended or revised, the amount of bonds | 16 |
| the holders of which must consent thereto, and the | 17 |
| manner in which consent may be given;
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| (K) the definition of the acts or omissions to act | 19 |
| that shall constitute a default in the duties of the | 20 |
| agency to holders of its bonds, and the rights and | 21 |
| remedies of the holders in the event of default, | 22 |
| including, if the agency so determines, the right to | 23 |
| accelerate the due date of the bonds or the right to | 24 |
| appoint a receiver or receivers of the property or | 25 |
| revenues subject to the lien of the resolution, trust | 26 |
| indenture, or other security agreement;
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| (L) any other or additional agreements with or for | 2 |
| the benefit of the holders of bonds or any covenants or | 3 |
| restrictions necessary or desirable to safeguard the | 4 |
| interests of the holders;
| 5 |
| (M) the custody of its properties or investments, | 6 |
| the safekeeping thereof, the insurance to be carried | 7 |
| thereon, and the use and disposition of insurance | 8 |
| proceeds;
| 9 |
| (N) the vesting in a trustee or trustees, within or | 10 |
| without the State of Illinois, of such properties, | 11 |
| rights, powers, and duties in trust as the agency may | 12 |
| determine; or the limiting or abrogating of the rights | 13 |
| of the holders of any bonds to appoint a trustee, or | 14 |
| the limiting of the rights, powers, and duties of such | 15 |
| trustee; or
| 16 |
| (O) the appointment of and the establishment of the | 17 |
| duties and obligations of any paying agent or other | 18 |
| fiduciary within or without the State of Illinois.
| 19 |
| (7) For the security of bonds issued or to be issued by | 20 |
| an agency, the agency may mortgage or execute deeds of | 21 |
| trust of the whole or any part of its property and | 22 |
| franchises. Any pledge of revenues, securities, contract | 23 |
| rights, or other personal property made by an agency | 24 |
| pursuant to this Act shall be valid and binding from the | 25 |
| date the pledge is made. The revenues, securities, contract | 26 |
| rights, or other personal property so pledged and then held |
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| or thereafter received by the agency or any fiduciary shall | 2 |
| immediately be subject to the lien of the pledge without | 3 |
| any physical delivery thereof or further act, and the lien | 4 |
| of the pledge shall be valid and binding as against all | 5 |
| parties having claims of any kind in tort, contract, or | 6 |
| otherwise against the agency without regard to whether the | 7 |
| parties have notice. The resolution, trust indenture, | 8 |
| security agreement, or other instrument by which a pledge | 9 |
| is created shall be recorded in the county in which the | 10 |
| principal office is located in the manner provided by law.
| 11 |
| (8) Neither the officials, the directors, nor the | 12 |
| members of an agency nor any person executing bonds shall | 13 |
| be liable personally on the bonds or be subject to any | 14 |
| personal liability or accountability by reason of the | 15 |
| issuance thereof. An agency shall have power to indemnify | 16 |
| and to purchase and maintain insurance on behalf of any | 17 |
| director, officer, employee, or agent of the agency, in | 18 |
| connection with any threatened, pending, or completed | 19 |
| action, suit, or proceeding.
| 20 |
| (9) An agency shall have power to purchase out of any | 21 |
| funds available therefor, bonds, and to hold for | 22 |
| re-issuance, pledge, cancel, or retire the bonds and | 23 |
| coupons prior to maturity, subject to and in accordance | 24 |
| with any agreements with the holders.
| 25 |
| (10) The principal of and interest upon any bonds | 26 |
| issued by an agency shall be payable solely from the |
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| revenue sources or funds pledged or available for their | 2 |
| payment as authorized in this Act. Each bond shall contain | 3 |
| a statement that it constitutes an obligation of the agency | 4 |
| issuing the bond, that its principal and interest are | 5 |
| payable solely from revenues or funds of the agency and | 6 |
| that neither the State of Illinois nor any political | 7 |
| subdivision thereof, except the issuer, nor any school | 8 |
| district that is a member of the agency, is obligated to | 9 |
| pay the principal or interest on the bonds and that neither | 10 |
| the faith and credit nor the taxing power of the State of | 11 |
| Illinois or any such political subdivision thereof or of | 12 |
| any such school district is pledged to the payment of the | 13 |
| principal of or the interest on the bonds.
| 14 |
| Section 65. Charges. An agency may establish, levy, and | 15 |
| collect or may authorize, by contract, franchise, lease, or | 16 |
| otherwise, the establishment, levying, and collection of | 17 |
| rents, rates, and other charges for the products and services | 18 |
| afforded by the agency or by or in connection with any eligible | 19 |
| project or properties that it may construct, acquire, own, | 20 |
| operate, or control or with respect to which it may have any | 21 |
| interest or any right to the products and services thereof as | 22 |
| it may deem necessary, proper, desirable, or reasonable. Rents, | 23 |
| rates, and other charges shall be established so as to be | 24 |
| sufficient to meet the operation, maintenance, and other | 25 |
| expenses thereof, including reasonable reserves, interest, and |
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| principal payments, including payments into one or more sinking | 2 |
| funds for the retirement of principal. An agency may pledge its | 3 |
| rates, rents, and other revenue, or any part thereof, as | 4 |
| security for the repayment, with interest and premium, if any, | 5 |
| of any moneys borrowed by it or advanced to it for any of its | 6 |
| authorized purposes and as security for the payment of amounts | 7 |
| due and owing by it under any contract. | 8 |
| Section 70. School districts may contract. | 9 |
| (a) In order to accomplish the purposes of this Act, a | 10 |
| school district may enter into and carry out contracts and | 11 |
| agreements for the sale, lease, or other use of property, real | 12 |
| or personal, cooperative provision of services, such as police | 13 |
| services, or the purchase of power from an agency, or | 14 |
| transmission services, development services, and other | 15 |
| services.
| 16 |
| (b) Any contract and agreement shall be for a period not to | 17 |
| exceed 50 years and shall contain other terms, conditions, and | 18 |
| provisions that are not inconsistent with the provisions of | 19 |
| this Act as the governing body of such school district shall | 20 |
| approve, including without limitation provisions whereby the | 21 |
| school district is obligated to pay for the products and | 22 |
| services of an agency without set-off or counterclaim and | 23 |
| irrespective of whether such products or services are | 24 |
| furnished, made available, or delivered to the school district, | 25 |
| or whether any project contemplated by any such contract and |
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| agreement is completed, operable or operating, and | 2 |
| notwithstanding suspension, interruption, interference, | 3 |
| reduction, or curtailment of the products and services of the | 4 |
| project.
| 5 |
| (c) Any contract and agreement may be pledged by the agency | 6 |
| to secure its obligations and may provide that if one or more | 7 |
| school districts defaults in the payment of its obligations | 8 |
| under such contract and agreement, the remaining school | 9 |
| districts having such contracts and agreements shall be | 10 |
| required to pay for and shall be entitled proportionately to | 11 |
| use or otherwise dispose of the products and services that were | 12 |
| to be purchased by the defaulting school district.
| 13 |
| (c) Any contract and agreement providing for payments by a | 14 |
| school district shall be an obligation of the school district | 15 |
| payable from and secured by such lawfully available funds as | 16 |
| may be made pursuant to applicable law. Notwithstanding the | 17 |
| sources of funds pledged, any contract between the agency and | 18 |
| its members with respect to an eligible project shall not | 19 |
| constitute an indebtedness of such members within any statutory | 20 |
| limitation.
| 21 |
| (d) Nothing in this Act shall be construed to preclude a | 22 |
| school district from appropriating and using taxes and other | 23 |
| revenues received in any year to make payments due or to comply | 24 |
| with covenants to be performed during that year under any | 25 |
| contract or agreement for a term of years entered into as | 26 |
| contemplated in this Act, subject to the provisions of |
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| applicable law.
| 2 |
| (e) Any contract or agreement may include provisions for | 3 |
| requirements purchases, restraints on resale or other | 4 |
| dealings, exclusive dealing, pricing, territorial division, | 5 |
| and other conduct or arrangements that may have an | 6 |
| anti-competitive effect.
| 7 |
| (f) Notwithstanding the provisions of any other law, in the | 8 |
| making of a contract or agreement between an agency and a | 9 |
| member, the director of the agency who represents such member | 10 |
| must recuse himself or herself from participation in | 11 |
| discussions or voting as director, but may participate and vote | 12 |
| in his or her capacity as an officer of the governing body of | 13 |
| such member, and such participation and voting shall not be a | 14 |
| conflict of interest.
| 15 |
| Section 97. Severability. The provisions of this Act are | 16 |
| severable under Section 1.31 of the Statute on Statutes.
| 17 |
| Section 999. Effective date. This Act takes effect upon | 18 |
| becoming law.".
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