95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1666

 

Introduced 2/9/2007, by Sen. Michael W. Frerichs

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.675 new
30 ILCS 330/2   from Ch. 127, par. 652
30 ILCS 330/6   from Ch. 127, par. 656

    Creates the Clean Water Bond Act. Provides that, of the proceeds of the bonds issued under the General Obligation Bond Act for the purposes of the Clean Water Bond Act, $35,000,000 shall be deposited into the Anti-Pollution Fund and, subject to appropriation, shall be transferred to the Clean Water Trust Fund and, subject to appropriation, be used by the Office of the Lieutenant Governor to fund the making of loans or grants to local government entities for projects concerning clean water. Amends the General Obligation Bond Act. Increases the amount of the authorization of State bonds from $27,658,149,369 to $27,693,149,369. Provides that the amount of $35,000,000 is authorized for use by the Office of the Lieutenant Governor for the purposes of the Clean Water Bond Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the Clean
5 Water Bond Act.
 
6     Section 5. Findings. The General Assembly makes the
7 following findings and determinations:
8         (1) There is a pressing need in the State to improve
9     water quality through the making of loans or grants to
10     local government entities and to encourage partnerships
11     among federal, State, and local governments and
12     not-for-profit organizations for:
13             (A) financing, repairing, upgrading, and
14         constructing wastewater facilities;
15             (B) planning, engineering, acquiring,
16         constructing, and improving watershed, drainage, and
17         flood control improvements, which includes expenses
18         related to land and easement acquisition, relocation,
19         control structures, channel work, and clearing and
20         appurtenant work;
21             (C) the protection, preservation, restoration,
22         conservation, and improvement of water, including the
23         making of grants to soil and water conservation

 

 

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1         districts for the planning and implementation of
2         conservation practices and for funding contracts with
3         the Soil Conservation Service for watershed planning
4         and the provision of cost-sharing for the planning and
5         implementation of conservation practices by farmers
6         and landowners approved under federal programs of the
7         United States Department of Agriculture;
8             (D) capital development and improvement of water
9         projects, including planning and engineering costs,
10         and the acquisition, from willing sellers, of open
11         space lands related to the protection, preservation,
12         restoration, conservation, and improvement of water,
13         including the acquisition of easements and other
14         property interests of less than fee simple ownership
15         provided that these mechanisms are all voluntary on the
16         part of the landowners and do not involve the use of
17         eminent domain; and
18             (E) the removal and disposition of hazardous
19         substances, including the cost of project management,
20         equipment, laboratory analysis, and contractual
21         services necessary for preventative and corrective
22         actions related to water quality.
23         (2) The issuance and sale of bonds under the General
24     Obligation Bond Act is an economical and efficient method
25     of financing the goals of this Act.
 

 

 

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1     Section 7. Definitions. As used in this Act:
2     "Local government entity" means a school district, a
3 municipality, a county, a township, a conservation district, a
4 soil or water conservation district, a drainage district, a
5 forest preserve district, a park district, a port district, a
6 river conservancy district, a sanitary district, a solid waste
7 disposal district, a surface water protection district, a
8 public water district, a water service district, a water
9 authority, a water commission, or any other entity defined as a
10 "unit of local government" by Section 1 of Article VII of the
11 Illinois Constitution.
12     "Not-for-profit organization" means an entity that is
13 organized as a not-for-profit corporation under the laws of
14 this State and of the United States.
 
15     Section 10. Proceeds of bonds.
16     (a) Of the proceeds of the bonds issued under the General
17 Obligation Bond Act for the purposes of this Act, $35,000,000
18 shall be deposited into the Anti-Pollution Fund and, subject to
19 appropriation, shall be transferred to the Clean Water Trust
20 Fund, a special fund in the State treasury, and, subject to
21 appropriation, used by the Office of the Lieutenant Governor to
22 fund the making of loans or grants. Loans or grants shall be
23 awarded only to local government entities, as defined in
24 Section 7 of this Act, however, this shall not be construed to
25 prohibit or impede not-for-profit organizations from

 

 

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1 submitting applications for loans or grants in partnership with
2 any entity of local government. Loans and grants shall be
3 awarded for the following:
4         (1) the financing and construction of wastewater
5     facilities;
6         (2) the planning, engineering, acquisition,
7     construction, and improvement of watershed, drainage, and
8     flood control improvements, which includes expenses
9     related to land and easement acquisition from willing
10     sellers, relocation, control structures, channel work, and
11     clearing and appurtenant work;
12         (3) the protection, preservation, restoration, and
13     conservation of water, including the making of grants to
14     soil and water conservation districts for the planning and
15     implementation of conservation practices and for funding
16     contracts with the Soil Conservation Service for watershed
17     planning and the provision of cost-sharing for the planning
18     and implementation of conservation practices by farmers
19     and landowners approved under federal programs of the
20     United States Department of Agriculture;
21         (4) the capital development and improvement of water
22     projects, including planning and engineering costs, and
23     the acquisition, from willing sellers, of open space lands
24     related to the improvement of water quality, including the
25     acquisition of easements and other property interests of
26     less than fee simple ownership provided that these

 

 

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1     mechanisms are all voluntary on the part of the landowners
2     and do not involve the use of eminent domain; and
3         (5) the removal and disposition of hazardous
4     substances, including the cost of project management,
5     equipment, laboratory analysis, and contractual services
6     necessary for preventative and corrective actions related
7     to the preservation, restoration, and conservation of
8     water.
9     (b) Moneys derived from the repayment of loans made under
10 this Section shall be deposited into the Clean Water Trust Fund
11 and, subject to appropriation, shall be used to fund new loans
12 or grants under this Section or, if they cannot be so used,
13 shall be transferred to the General Obligation Bond Retirement
14 and Interest Fund and shall be applied to pay the principal of,
15 interest on, or the redemption price of bonds payable from the
16 General Obligation Bond Retirement and Interest Fund.
 
17     Section 15. Acceptance of grants, loans, and
18 appropriations. The Office of the Lieutenant Governor may
19 apply for and accept grants, loans, or appropriations from the
20 federal government or any of its agencies or instrumentalities,
21 the State or any of its agencies or instrumentalities, or any
22 unit of local government to be used for any of the purposes of
23 this Act. Additionally, the Office of the Lieutenant Governor
24 may enter into any agreement with the federal or State
25 government or any of their agencies or instrumentalities or

 

 

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1 with any unit of local government concerning these grants,
2 loans, or appropriations. Any grants, donations, or
3 appropriations must be deposited into the Clean Water Trust
4 Fund.
 
5     Section 20. Grant and loan criteria.
6     (a) Priority shall be given to innovative pilot or
7 demonstrative projects that, if proven successful, may be
8 applied regionally or statewide.
9     (b) For all other projects, the following factors shall be
10 taken into account:
11         (1) the necessity of the project to the health and
12     safety of a community;
13         (2) the impending harm to the environment in the
14     location of the proposed project; and
15         (3) the financial status of the area benefiting from
16     the proposed project.
17     (c) Grants and loans shall be distributed throughout the
18 State without preference to any one region, local government
19 entity, or not-for-profit organization.
20     (d) The Office of the Lieutenant Governor shall adopt rules
21 concerning the selection of grant or loan recipients, amount of
22 grant or loan awards, and eligibility requirements for grants
23 or loans under this Act. The rules must include the following
24 additional requirements:
25         (1) funds may be used to purchase interests in land

 

 

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1     only from willing sellers;
2         (2) no real property acquired with grant or loan funds
3     may be sold, leased, exchanged, or otherwise encumbered,
4     unless it is used to qualify for a federal program or
5     transferred to the federal government, the State, or a unit
6     of local government for the protection, preservation,
7     restoration, improvement, or conservation of water; and
8         (3) no funds, whether a grant or loan, may be used to
9     acquire lands or interests in lands or real property by
10     eminent domain or to fund the costs of an eminent domain
11     proceeding.
 
12     Section 905. The State Finance Act is amended by adding
13 Section 5.675 as follows:
 
14     (30 ILCS 105/5.675 new)
15     Sec. 5.675. The Clean Water Trust Fund.
 
16     Section 910. The General Obligation Bond Act is amended by
17 changing Sections 2 and 6 as follows:
 
18     (30 ILCS 330/2)  (from Ch. 127, par. 652)
19     Sec. 2. Authorization for Bonds. The State of Illinois is
20 authorized to issue, sell and provide for the retirement of
21 General Obligation Bonds of the State of Illinois for the
22 categories and specific purposes expressed in Sections 2

 

 

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1 through 8 of this Act, in the total amount of $27,693,149,369
2 $27,658,149,369.
3     The bonds authorized in this Section 2 and in Section 16 of
4 this Act are herein called "Bonds".
5     Of the total amount of Bonds authorized in this Act, up to
6 $2,200,000,000 in aggregate original principal amount may be
7 issued and sold in accordance with the Baccalaureate Savings
8 Act in the form of General Obligation College Savings Bonds.
9     Of the total amount of Bonds authorized in this Act, up to
10 $300,000,000 in aggregate original principal amount may be
11 issued and sold in accordance with the Retirement Savings Act
12 in the form of General Obligation Retirement Savings Bonds.
13     Of the total amount of Bonds authorized in this Act, the
14 additional $10,000,000,000 authorized by Public this
15 amendatory Act 93-2 of the 93rd General Assembly shall be used
16 solely as provided in Section 7.2.
17     The issuance and sale of Bonds pursuant to the General
18 Obligation Bond Act is an economical and efficient method of
19 financing the long-term capital needs of the State. This Act
20 will permit the issuance of a multi-purpose General Obligation
21 Bond with uniform terms and features. This will not only lower
22 the cost of registration but also reduce the overall cost of
23 issuing debt by improving the marketability of Illinois General
24 Obligation Bonds.
25 (Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02;
26 92-598, eff. 6-28-02; 93-2, eff. 4-7-03; 93-839, eff. 7-30-04.)
 

 

 

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1     (30 ILCS 330/6)  (from Ch. 127, par. 656)
2     Sec. 6. Anti-Pollution.
3     (a) The amount of $319,815,000 is authorized for allocation
4 by the Environmental Protection Agency for grants or loans to
5 units of local government in such amounts, at such times and
6 for such purpose as the Agency deems necessary or desirable for
7 the planning, financing, and construction of municipal sewage
8 treatment works and solid waste disposal facilities and for
9 making of deposits into the Water Revolving Fund and the U.S.
10 Environmental Protection Fund to provide assistance in
11 accordance with the provisions of Title IV-A of the
12 Environmental Protection Act.
13     (b) The amount of $160,500,000 is authorized for allocation
14 by the Environmental Protection Agency for payment of claims
15 submitted to the State and approved for payment under the
16 Leaking Underground Storage Tank Program established in Title
17 XVI of the Environmental Protection Act.
18     (c) The amount of $35,000,000 is authorized for use by the
19 Office of the Lieutenant Governor for the purposes stated in
20 Section 10 of the Clean Water Bond Act.
21 (Source: P.A. 92-13, eff. 6-22-01; 92-598, eff. 6-28-02;
22 93-650, eff. 1-8-04.)
 
23     Section 999. Effective date. This Act takes effect upon
24 becoming law.