SB1666 95TH GENERAL ASSEMBLY

LRB095 06917 BDD 27036 b

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.

FISCAL NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Clean Water Bond Act.

Section 5. Findings. The General Assembly makes the following findings and determinations:

(1) There is a pressing need in the State to improve water quality through the making of loans or grants to local government entities and to encourage partnerships among federal, State, and local governments and not-for-profit organizations for:

(A) financing, repairing, upgrading, and constructing wastewater facilities;

(B) planning, engineering, acquiring, constructing, and improving watershed, drainage, and flood control improvements, which includes expenses related to land and easement acquisition, relocation, control structures, channel work, and clearing and appurtenant work;

(C) the protection, preservation, restoration, conservation, and improvement of water, including the making of grants to soil and water conservation districts for the planning and implementation of conservation practices and for funding contracts with the Soil Conservation Service for watershed planning and the provision of cost-sharing for the planning and implementation of conservation practices by farmers and landowners approved under federal programs of the United States Department of Agriculture;

(D) capital development and improvement of water projects, including planning and engineering costs, and the acquisition, from willing sellers, of open space lands related to the protection, preservation, restoration, conservation, and improvement of water, including the acquisition of easements and other property interests of less than fee simple ownership provided that these mechanisms are all voluntary on the part of the landowners and do not involve the use of eminent domain; and

(E) the removal and disposition of hazardous substances, including the cost of project management, equipment, laboratory analysis, and contractual services necessary for preventative and corrective actions related to water quality.

(2) The issuance and sale of bonds under the General Obligation Bond Act is an economical and efficient method of financing the goals of this Act.

Section 7. Definitions. As used in this Act:

"Local government entity" means a school district, a municipality, a county, a township, a conservation district, a soil or water conservation district, a drainage district, a forest preserve district, a park district, a port district, a river conservancy district, a sanitary district, a solid waste disposal district, a surface water protection district, a public water district, a water service district, a water authority, a water commission, or any other entity defined as a "unit of local government" by Section 1 of Article VII of the Illinois Constitution.

"Not-for-profit organization" means an entity that is organized as a not-for-profit corporation under the laws of this State and of the United States.

Section 10. Proceeds of bonds.

(a) Of the proceeds of the bonds issued under the General Obligation Bond Act for the purposes of this 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, a special fund in the State treasury, and, subject to appropriation, used by the Office of the Lieutenant Governor to fund the making of loans or grants. Loans or grants shall be awarded only to local government entities, as defined in Section 7 of this Act, however, this shall not be construed to prohibit or impede not-for-profit organizations from submitting applications for loans or grants in partnership with any entity of local government. Loans and grants shall be awarded for the following:

(1) the financing and construction of wastewater facilities;

(2) the planning, engineering, acquisition, construction, and improvement of watershed, drainage, and flood control improvements, which includes expenses related to land and easement acquisition from willing sellers, relocation, control structures, channel work, and clearing and appurtenant work;

(3) the protection, preservation, restoration, and conservation of water, including the making of grants to soil and water conservation districts for the planning and implementation of conservation practices and for funding contracts with the Soil Conservation Service for watershed planning and the provision of cost-sharing for the planning and implementation of conservation practices by farmers and landowners approved under federal programs of the United States Department of Agriculture;

(4) the capital development and improvement of water projects, including planning and engineering costs, and the acquisition, from willing sellers, of open space lands related to the improvement of water quality, including the acquisition of easements and other property interests of less than fee simple ownership provided that these mechanisms are all voluntary on the part of the landowners and do not involve the use of eminent domain; and

(5) the removal and disposition of hazardous substances, including the cost of project management, equipment, laboratory analysis, and contractual services necessary for preventative and corrective actions related to the preservation, restoration, and conservation of water.

(b) Moneys derived from the repayment of loans made under this Section shall be deposited into the Clean Water Trust Fund and, subject to appropriation, shall be used to fund new loans or grants under this Section or, if they cannot be so used, shall be transferred to the General Obligation Bond Retirement and Interest Fund and shall be applied to pay the principal of, interest on, or the redemption price of bonds payable from the General Obligation Bond Retirement and Interest Fund.

Section 15. Acceptance of grants, loans, and appropriations. The Office of the Lieutenant Governor may apply for and accept grants, loans, or appropriations from the federal government or any of its agencies or instrumentalities, the State or any of its agencies or instrumentalities, or any unit of local government to be used for any of the purposes of this Act. Additionally, the Office of the Lieutenant Governor may enter into any agreement with the federal or State government or any of their agencies or instrumentalities or with any unit of local government concerning these grants, loans, or appropriations. Any grants, donations, or appropriations must be deposited into the Clean Water Trust Fund.

Section 20. Grant and loan criteria.

(a) Priority shall be given to innovative pilot or demonstrative projects that, if proven successful, may be applied regionally or statewide.

(b) For all other projects, the following factors shall be taken into account:

(1) the necessity of the project to the health and safety of a community;

(2) the impending harm to the environment in the location of the proposed project; and

(3) the financial status of the area benefiting from the proposed project.

(c) Grants and loans shall be distributed throughout the State without preference to any one region, local government entity, or not-for-profit organization.

(d) The Office of the Lieutenant Governor shall adopt rules concerning the selection of grant or loan recipients, amount of grant or loan awards, and eligibility requirements for grants or loans under this Act. The rules must include the following additional requirements:

(1) funds may be used to purchase interests in land only from willing sellers;

(2) no real property acquired with grant or loan funds may be sold, leased, exchanged, or otherwise encumbered, unless it is used to qualify for a federal program or transferred to the federal government, the State, or a unit of local government for the protection, preservation, restoration, improvement, or conservation of water; and

(3) no funds, whether a grant or loan, may be used to acquire lands or interests in lands or real property by eminent domain or to fund the costs of an eminent domain proceeding.

Section 905. The State Finance Act is amended by adding Section 5.675 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The Clean Water Trust Fund.

Section 910. The General Obligation Bond Act is amended by changing Sections 2 and 6 as follows:

(30 ILCS 330/2) (from Ch. 127, par. 652)

Sec. 2. Authorization for Bonds. The State of Illinois is authorized to issue, sell and provide for the retirement of General Obligation Bonds of the State of Illinois for the categories and specific purposes expressed in Sections 2 through 8 of this Act, in the total amount of $27,693,149,369 $27,658,149,369.

The bonds authorized in this Section 2 and in Section 16 of this Act are herein called "Bonds".

Of the total amount of Bonds authorized in this Act, up to $2,200,000,000 in aggregate original principal amount may be issued and sold in accordance with the Baccalaureate Savings Act in the form of General Obligation College Savings Bonds.

Of the total amount of Bonds authorized in this Act, up to $300,000,000 in aggregate original principal amount may be issued and sold in accordance with the Retirement Savings Act in the form of General Obligation Retirement Savings Bonds.

Of the total amount of Bonds authorized in this Act, the additional $10,000,000,000 authorized by Public this amendatory Act 93-2 of the 93rd General Assembly shall be used solely as provided in Section 7.2.

The issuance and sale of Bonds pursuant to the General Obligation Bond Act is an economical and efficient method of financing the long-term capital needs of the State. This Act will permit the issuance of a multi-purpose General Obligation Bond with uniform terms and features. This will not only lower the cost of registration but also reduce the overall cost of issuing debt by improving the marketability of Illinois General Obligation Bonds.

(Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02; 92-598, eff. 6-28-02; 93-2, eff. 4-7-03; 93-839, eff. 7-30-04.)

(30 ILCS 330/6) (from Ch. 127, par. 656)

Sec. 6. Anti-Pollution.

(a) The amount of $319,815,000 is authorized for allocation by the Environmental Protection Agency for grants or loans to units of local government in such amounts, at such times and for such purpose as the Agency deems necessary or desirable for the planning, financing, and construction of municipal sewage treatment works and solid waste disposal facilities and for making of deposits into the Water Revolving Fund and the U.S. Environmental Protection Fund to provide assistance in accordance with the provisions of Title IV-A of the Environmental Protection Act.

(b) The amount of $160,500,000 is authorized for allocation by the Environmental Protection Agency for payment of claims submitted to the State and approved for payment under the Leaking Underground Storage Tank Program established in Title XVI of the Environmental Protection Act.

(c) The amount of $35,000,000 is authorized for use by the Office of the Lieutenant Governor for the purposes stated in Section 10 of the Clean Water Bond Act.

(Source: P.A. 92-13, eff. 6-22-01; 92-598, eff. 6-28-02; 93-650, eff. 1-8-04.)

Section 999. Effective date. This Act takes effect upon becoming law.