State of Illinois
2007 and 2008


Introduced , by Rep. Michael J. Madigan


See Index

    Creates the Illinois Power Authority Act. Creates the Authority as a not-for-profit State agency with a 5-member board appointed by the Governor. Grants the Authority powers relating to procurement, generation and distribution of power, and the construction and acquisition of facilities. Requires the use of Illinois coal. Sets forth other powers. Exempts the Authority from the jurisdiction of the Illinois Commerce Commission. Allows acquisition of property by eminent domain and through quick-take powers. Authorizes the acquisition or creation of not-for-profit subsidiaries. Authorizes the issuance of notes and revenue bonds. Contains provisions relating to contracts, deposit and investment of moneys, exemption from taxation, repayment of State appropriations, and equal employment opportunities. Contains other provisions. Amends the Public Utilities Act and the Eminent Domain Act to make conforming changes. Amends the Illinois Pension Code. Encourages the trustees of public employee retirement systems to invest their system's assets to the greatest extent feasible within the bounds of financial and fiduciary prudence in the Illinois Power Authority. Provides that each retirement system subject to the Code shall prepare a report to be submitted to the Governor and the General Assembly by September 1 of each year. Provides that the report shall identify investments in the Illinois Power Authority, the percentage of the system's assets invested in the Illinois Power Authority, and the actions it has undertaken to increase investments in the Illinois Power Authority. Contains a severability clause. Effective immediately.

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1     AN ACT concerning economical power.
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
5 Illinois Power Authority Act.
6     Section 5. Legislative findings and declarations. The
7 General Assembly hereby finds and declares all of the
8 following:
9         (1) The health, welfare, and prosperity of all Illinois
10     citizens require the provision of adequate, efficient,
11     reliable, environmentally safe, and least-cost electric
12     service at prices that accurately reflect the long-term
13     average cost of such services and that are equitable to all
14     citizens, and that public utilities and alternative retail
15     electric suppliers have failed to provide electric service
16     that meets all of these criteria.
17         (2) Constantly escalating and excessive costs of
18     electricity in the State of Illinois pose a serious threat
19     to the economic well-being, health, and safety of the
20     residents of and the commerce and industry in the State.
21         (3) There is a lack of confidence that the electricity
22     needs of residents, commerce, and industry can be supplied
23     in a reliable, efficient, and economical manner in Illinois



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1     because ComEd and AmerenIP, AmerenCIPS, and AmerenCILCO
2     have (i) increased their rates unreasonably and
3     unnecessarily; (ii) repeatedly threatened bankruptcy;
4     (iii) failed to maintain their transmission and
5     distribution systems in a manner that ensures reliability;
6     and (iv) in some cases, failed to restore power to
7     customers for more than a week after an outage.
8         (4) These excessive costs and lack of confidence have
9     deterred commerce and industry from locating in Illinois
10     and have caused existing commerce and industry to seriously
11     consider moving out of the State.
12         (5) The auction that ComEd and Ameren used to procure
13     electricity resulted in rate increases of 26% to 55%,
14     causing consumers' electric bills to skyrocket and
15     straining the budgets of small and large ratepayers in the
16     State. Some bill increases have been between 100% and 300%.
17     Further substantial rate increases have been forecast by
18     the utilities.
19         (6) For all the these reasons, a situation threatening
20     the economy, health, and safety exists in the State.
21         (7) Dealing with this situation in an effective manner,
22     assuring the provision of an adequate supply of electricity
23     in a reliable, efficient, and economic manner, and
24     retaining existing commerce and industry in and attracting
25     new commerce and industry to the State are matters of State
26     concern within the scope of the State's powers.



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1         (8) These matters of State concern can best be dealt
2     with by creating a publicly-owned power authority. Such an
3     authority can best accomplish the purposes and objectives
4     of this Act by generating, producing, procuring, and
5     transmitting power to residents and businesses in the
6     State.
7     The General Assembly therefore finds that it is necessary
8 to create the Illinois Power Authority and that the goals and
9 objectives of such Authority shall be to:
10         (A) prepare an annual report that identifies the
11     least-cost mix of electric generation, energy-efficiency,
12     and demand-response resources needed to serve Illinois
13     residents and businesses 20 years into the future;
14         (B) procure least-cost supply-side and demand-side
15     resources through competitive procurement processes to
16     meet the electricity needs of all retail customers in the
17     service territories of electric utilities that on January
18     2, 2007 served at least 100,000 customers and all other
19     retail customers in those service territories who elect
20     service by the Illinois Power Authority;
21         (C) construct and operate electric generation and
22     cogeneration facilities that use indigenous coal and
23     renewable resources, financed with bonds issued by the
24     Illinois Power Authority; and
25         (D) sell electricity at cost to retail customers and to
26     municipal electric utilities and rural electric



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1     cooperatives.
2     The Authority's coal generating facilities will use only
3 Illinois coal and will provide safe and adequate service at
4 rates that will be lower than the rates that would otherwise
5 result and will facilitate investment in more beneficial energy
6 and demand-side management alternatives, resulting in savings
7 for the ratepayers in the State and otherwise restoring the
8 confidence and protecting the interests of ratepayers and the
9 economy in the State. Moreover, the competition with
10 investor-owned utilities by the authority will result in an
11 improved system, and reduction of future costs, a safer, more
12 efficient, reliable, and economical supply of electric energy.
13     The General Assembly further declares that the Authority
14 shall use, to the fullest extent practical, all economical
15 means of conservation, and technologies that rely on renewable
16 energy resources, cogeneration, and improvements in energy
17 efficiency that will benefit the interests of the ratepayers of
18 the State.
19     Section 10. Definitions. In this Act, unless a different
20 meaning clearly appears from the context:
21     "Acquire" means, with respect to any right, title, or
22 interest in or to any property, the act of taking by the
23 exercise of the power of eminent domain, or acquisition by
24 purchase or otherwise.
25     "Act" means the Illinois Power Authority Act.



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1     "Authority" means the Illinois Power Authority.
2     "Board" means the board of trustees of the Authority.
3     "Bonds" or "notes" mean the bonds, notes, or other
4 obligations issued by the Authority pursuant to this Act.
5     "Demand-side resource" means an energy efficiency or
6 load-management measure.
7     "Federal government" means the United States of America and
8 any agency or instrumentality, corporate or otherwise, of the
9 United States of America.
10     "Local government" means any unit of local government, as
11 defined in Section 1 of Article VII of the Illinois
12 Constitution, and any school district.
13     "Municipal cooperative" means a municipality that owns and
14 operates its own electric distribution system.
15     "Project" means an action undertaken by the Authority that:
16         (i) causes the Authority to issue bonds, notes, or
17     other obligations, or shares in any subsidiary
18     corporation;
19         (ii) significantly modifies the use of an asset valued
20     at more than $1,000,000 owned by the Authority or involves
21     the sale, lease, or other disposition of such an asset; or
22         (iii) commits the Authority to a contract or agreement
23     with a total consideration of greater than $1,000,000 and
24     does not involve the day-to-day operations of the
25     Authority.
26     "Prudent industry practices" at a particular time means any



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1 of the practices, methods, and acts that, in the exercise of
2 reasonable judgment in light of the facts (including but not
3 limited to the practices, methods, and acts engaged in or
4 approved by a significant portion of the electrical utility
5 industry, as the case may be, prior thereto) known at the time
6 the decision was made, would have been expected to accomplish
7 the desired result at the lowest reasonable cost consistent
8 with reliability, safety, and expedition. Prudent industry
9 practices are not intended to be limited to the optimum
10 practice, method, or act, to the exclusion of all others, but
11 rather to be a spectrum of possible practices, methods, or
12 acts. In evaluating whether any matter conforms to prudent
13 industry practices, the parties shall take into account the
14 fact that the Authority is a State agency with statutory duties
15 and responsibilities.
16     "Real property" means lands, structures, franchises, and
17 interests in land, including lands under water and riparian
18 rights, and all other things and rights usually included within
19 that term, and includes also all interests in such property
20 less than full title, such as easements, rights-of-way, uses,
21 leases, licenses, and all other incorporeal hereditaments and
22 every estate, interest, or right, legal or equitable, including
23 terms for years and liens thereon by way of judgments,
24 mortgages, or otherwise, and also all claims for damages for
25 that real estate.
26     "Renewable energy resources" includes energy from wind,



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1 solar thermal energy, photovoltaic cells and panels, dedicated
2 crops grown for energy production and organic waste biomass,
3 hydropower that does not involve new construction or
4 significant expansion of hydropower dams, and other
5 alternative sources of environmentally preferable energy.
6 "Renewable energy resources" does not include, however, energy
7 from the incineration, burning, or heating of waste wood,
8 tires, garbage, general household, institutional, and
9 commercial waste, industrial lunchroom or office waste,
10 landscape waste, or construction or demolition debris.
11     "Rural electric cooperative" means an electric cooperative
12 as defined in Section 3.4 of the Electric Supplier Act.
13     "Security" means any note, stock (whether common or
14 preferred), bond, debenture, evidence of indebtedness,
15 transferable share, voting-trust certificate, or, in general,
16 any interest or instrument commonly known as a "security", or
17 any certificate of interest or participation in, temporary or
18 interim certificate for, receipt for, or warrant or right to
19 subscribe to or purchase any of the foregoing.
20     "State" means the State of Illinois.
21     "State agency" means any board, authority, agency,
22 department, commission, public corporation, body politic, or
23 instrumentality of the State.
24     "Supply-side resource" means an electric generation or
25 cogeneration facility.
26     "Trustees" means the trustees of the Authority appointed



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1 pursuant to Section 20 of this Act.
2     Section 15. Illinois Power Authority.
3     (a) For the purpose of effectuating the policy declared in
4 Section 5 of this Act, there is hereby created a State agency
5 to be known as the Illinois Power Authority, which shall be a
6 body corporate and politic, a political subdivision of the
7 State, exercising governmental and public powers, perpetual in
8 duration, capable of suing and being sued, and having a seal,
9 and which shall have the powers and duties enumerated in this
10 Act, together with such others conferred upon it by law.
11     (b) The Authority shall report annually to the Governor and
12 the General Assembly upon its operations and transactions. The
13 annual report shall identify the Authority by its statutory
14 name, and include a letter of transmittal in the report to the
15 Governor and the General Assembly. The annual report shall also
16 include, but not be limited to, the following: (1) the amount
17 of power and energy produced by each project facility; (2) the
18 quantity and price of any electricity procured by the Authority
19 under wholesale contracts; (3) the kilowatt-hour sales by
20 project facility and by customer, including all sales to
21 investor-owned electric corporations, municipal electric
22 systems, and rural electric cooperatives; (4) the revenues and
23 costs as allocated by the Authority for each project facility;
24 (5) the busbar cost for each facility; (6) the accumulated
25 provision for depreciation for each project facility; and (7)



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1 basic financial and operating information specifically
2 detailed for the reporting year and including, but not limited
3 to, income and expense statements, balance sheets, and changes
4 in financial position, all in accordance with generally
5 accepted accounting principles, debt structure, and a summary
6 of funds on a cash basis. The requirement to provide
7 information pursuant to this subsection is not intended to
8 affect the Authority's responsibilities or obligations under
9 this Act.
10     (c) The Authority is not created or organized, and its
11 operations shall not be conducted, for the purpose of making a
12 profit. No part of the revenues or assets of the Authority
13 shall inure to the benefit of or be distributable to any of its
14 trustees or officers or any other private persons, except as
15 provided in this Act for actual services rendered.
16     Section 20. Trustees.
17     (a) The Authority shall consist of 5 trustees, each of whom
18 shall serve respectively for terms of one, 2, 3, 4, or 5 years.
19 Each trustee shall hold office until a successor has been
20 appointed and qualified. The Governor shall appoint all
21 trustees. One appointee shall serve an initial term of one
22 year; the second appointee shall serve an initial term of 2
23 years; the third appointee shall serve an initial term of 3
24 years; the fourth appointee shall serve an initial term of 4
25 years; and the fifth appointee shall serve an initial term of 5



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1 years. Thereafter, all terms shall be for a period of 5 years.
2 Three trustees shall be attorneys, certified public
3 accountants, or professional engineers and shall each have at
4 least 10 years of experience. Two trustees must have at least
5 10 years of experience in one of the following fields: (i)
6 economics, (ii) finance, (iii) accounting, (iv) physical or
7 natural sciences, (v) natural resources, or (vi) environmental
8 studies.
9     (b) At the expiration of the term of each trustee, the
10 Governor shall appoint a successor, who shall hold office for a
11 term of 5 years. In the event of a vacancy occurring in the
12 office of the trustee by death, resignation, or otherwise, the
13 Governor shall appoint a successor, who shall hold office for
14 the unexpired term. Three trustees constitute a quorum for the
15 purpose of organizing the Authority and conducting its
16 business.
17     (c) The trustees shall receive an annual salary of $50,000
18 or an amount set by the Compensation Review Board, whichever is
19 greater. Each shall be entitled to reimbursement for reasonable
20 expenses in the performance of duties assigned under this Act.
21     (d) Notwithstanding the provisions of any other law, no
22 trustee, officer, or employee of the State, any State agency,
23 or any local government that is appointed a trustee shall be
24 deemed to have forfeited or shall forfeit his or her office or
25 employment by reason of his or her acceptance of a trusteeship
26 on the Authority, his or her service thereon, or his or her



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1 employment therewith.
2     (e) No trustee shall be employed by a public utility,
3 independent power producer, power marketer, alternative retail
4 electric supplier, or the Authority while serving as a trustee
5 for 2 years prior to appointment or for 2 years after he or she
6 leaves his or her position as a trustee.
7     (f) Trustees shall be prohibited from all of the following
8 while serving as a trustee and for 2 years prior to the
9 appointment or for 2 years after he or she leaves his or her
10 position as a trustee:
11         (1) Owning or holding, directly or indirectly, 5% or
12     more of the voting capital stock of the public utility,
13     independent power producer, power marketer, or alternative
14     retail electric supplier.
15         (2) Being in any chain of successive ownership of 5% or
16     more of the voting capital stock of any public utility,
17     independent power producer, power marketer, or alternative
18     retail electric supplier.
19         (3) Receiving any form of compensation, fee, payment,
20     or other consideration from a public utility, independent
21     power producer, power marketer, or alternative retail
22     electric supplier, including legal fees, consulting fees,
23     bonuses, or other sums.
24     Section 25. Officers and employees; expenses. The trustees
25 shall choose from among their own number a chairperson and



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1 vice-chairperson. They shall from time to time select such
2 officers and employees, including a chief executive officer,
3 and such engineering, marketing, and legal officers and
4 employees, as they may require for the performance of their
5 duties and shall prescribe the duties and compensation of each
6 officer and employee. They shall adopt by-laws and rules and
7 regulations suitable to the purposes of this Act. As long as
8 and to the extent that the Authority is dependent upon
9 appropriations for the payment of its expenses, it shall incur
10 no obligations for salary, office, or other expenses prior to
11 the making of appropriations adequate to meet those expenses.
12     Section 30. General powers of the Authority.
13     (a) The Authority is authorized to procure power and energy
14 through a competitive solicitation process and to generate its
15 own power and energy.
16     (b) The Authority is authorized to construct, improve, and
17 rehabilitate throughout Illinois (1) coal-fired projects that
18 it deems necessary or desirable to contribute to the adequacy,
19 economy, and reliability of the supply of electric power and
20 energy; (2) cogeneration projects to save fuel and (3) other
21 Illinois facilities using new energy technologies or renewable
22 energy resources that in its judgment are necessary (i) to
23 supply low-cost power and energy to residential and commercial
24 customers; (ii) to supply industrial customers that allow
25 construction of new generation facilities on their property or



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1 expansion of existing facilities on their property if heat,
2 power, or energy is made available to such industrial
3 customers; and (iii) to supply the future needs of municipal
4 electric and rural electric cooperative customers.
5     (c) The first generating facility that the Authority
6 constructs, acquires, or completes shall be a coal-fired
7 project that is specified under item (1) of subsection (b) of
8 this Section. The Authority is authorized to construct,
9 acquire, and complete coal generating, transmission, and
10 related facilities pursuant to this Section that it deems
11 necessary or desirable to assist in maintaining an adequate and
12 dependable supply of electricity; except that (i) only coal
13 from the State of Illinois shall be used at any coal generating
14 facility that is owned or maintained by the Authority and (ii)
15 the price to be paid pursuant to any agreement entered into
16 with respect to the purchase, appropriation, or condemnation of
17 any completed or partially completed facility, as the case may
18 be, shall be subject to the approval of a majority of the
19 trustees. The Authority is further authorized to make energy
20 efficiency services, clean energy technologies, and power and
21 energy available throughout the State. The acquisition of
22 completed or partially completed facilities shall be after
23 public hearing.
24     (d) Except as otherwise limited by this Act, the Authority
25 shall have all of the powers necessary or convenient to carry
26 out the purposes and provisions of this Act, including without



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1 limitation, the power:
2         (1) To sue and be sued in all courts and to participate
3     in actions and proceedings, whether judicial,
4     administrative, arbitrative, or otherwise.
5         (2) To have a corporate seal, and to alter that seal at
6     pleasure, and to use it by causing it or a facsimile to be
7     affixed or impressed or reproduced in any other manner.
8         (3) To appoint officers, agents, and employees,
9     without regard to the Personnel Code or any other personnel
10     or civil service law, rule, or regulation of the State and
11     in accordance with guidelines adopted by the Authority,
12     prescribe their duties and qualifications, and fix and pay
13     their compensation.
14         (4) To purchase, receive, take by grant, gift, devise,
15     bequest, or otherwise, lease, or otherwise acquire, own,
16     hold, improve, employ, use, and otherwise deal in and with,
17     real or personal property whether tangible or intangible,
18     or any interest therein, within the State.
19         (5) To acquire real or personal property, whether
20     tangible or intangible, including without limitation
21     property rights, interests in property, franchises,
22     obligations, contracts, and debt and equity securities, by
23     the exercise of the power of eminent domain; except that
24     any real property acquired by the exercise of the power of
25     eminent domain must be located within the State.
26         (6) To sell, convey, lease, exchange, transfer,



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1     abandon, or otherwise dispose of, or mortgage, pledge, or
2     create a security interest in, any of its assets,
3     properties, or any interest therein, wherever situated.
4         (7) To purchase, take, receive, subscribe for, or
5     otherwise acquire, hold, make a tender offer for, vote,
6     employ, sell, lend, lease, exchange, transfer, or
7     otherwise dispose of, mortgage, pledge, or grant a security
8     interest in, use and otherwise deal in and with, bonds and
9     other obligations, shares, or other securities (or
10     interests therein) issued by others, whether engaged in a
11     similar or different business or activity.
12         (8) To make and execute agreements, contracts, and
13     other instruments necessary or convenient in the exercise
14     of the powers and functions of the Authority under this
15     Act, including contracts with any person, firm,
16     corporation, local government, State agency, or other
17     entity, and all State agencies and all local governments
18     are hereby authorized to enter into and do all things
19     necessary to perform any such agreement, contract, or other
20     instrument with the Authority.
21         (9) To borrow money at such rate or rates of interest
22     as the Authority may determine, issue its notes, bonds, or
23     other obligations to evidence that indebtedness, and
24     secure any of its obligations by mortgage or pledge of any
25     of its property or any interest therein, wherever situated.
26         (10) To arrange for guarantees of its bonds, notes, or



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1     other obligations by the federal government or by any
2     private insurer or otherwise, and to pay any premiums
3     therefor.
4         (11) To issue its bonds or notes or other obligations
5     whether or not the income therefrom is exempt from federal
6     income taxation.
7         (12) To purchase bonds, notes, or other obligations of
8     the Authority at such price or prices as the Authority may
9     determine.
10         (13) To lend money, invest and reinvest its funds, and
11     take and hold real and personal property as security for
12     the payment of funds loaned or invested.
13         (14) To procure insurance against any loss in
14     connection with its properties or operations in such amount
15     or amounts and from such insurers, including the federal
16     government, as it may deem necessary or desirable, and to
17     pay any premiums therefor.
18         (15) To negotiate and enter into agreements with
19     trustees or receivers appointed by United States
20     bankruptcy courts or federal district courts or in other
21     proceedings involving adjustment of debts and authorize
22     legal counsel for the Authority to appear in any such
23     proceedings.
24         (16) To file a petition under Chapter 9 of Title 11 of
25     the United States Bankruptcy Code or take other similar
26     action for the adjustment of its debts.



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1         (17) To enter into agreements to purchase power from
2     the State, any State agency, any local government, any
3     private entity, or any other available source at such price
4     or prices as may be negotiated for the purchase of that
5     power and on such terms as are consistent with the purposes
6     of this Act.
7         (18) To enter into management agreements for the
8     operation of any of the property or facilities owned by the
9     Authority.
10         (19) To transfer any asset of the Authority to one or
11     more municipal or rural electric agencies or cooperatives,
12     for such consideration and upon such terms as the Authority
13     may determine to be in the best interest of the citizens of
14     the State of Illinois.
15         (20) Subject to subsection (g) of Section 60 of this
16     Act and after holding public hearings upon reasonable
17     public notice, with at least one hearing to be held in Cook
18     County and at least one in Sangamon County, to fix rates
19     and charges for the furnishing or rendition of electric
20     power or of any related service at the lowest level
21     consistent with sound fiscal and operating practices of the
22     Authority and that provide for safe and adequate service.
23         (21) To enter upon any lands and within any building
24     whenever in its judgment it may be necessary for the
25     purpose of making surveys and examinations to accomplish
26     any purpose authorized by this Act.



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1         (22) To enter into agreements to pay annual sums in
2     lieu of taxes to any local government with respect to any
3     real property that is owned by the Authority and is located
4     in that local government.
5         (23) To maintain an office or offices at such place or
6     places in the State as it may determine.
7         (24) To make any inquiry, investigation, survey, or
8     study that the Authority may deem necessary to enable it
9     effectively to carry out the provisions of this Act.
10         (25) To adopt, revise, amend, and repeal rules and
11     regulations with respect to its operations, properties,
12     and facilities as may be necessary or convenient to carry
13     out the purposes of this Act, subject to the provisions of
14     the Illinois Administrative Procedure Act.
15     Section 35. Specific powers. Without limiting the
16 generality of the powers conferred upon the Authority by
17 Section 30 of this Act, the Authority shall have the specific
18 power:
19         (1) To acquire, construct, improve, rehabilitate,
20     maintain, and operate such generating, transmission, and
21     related facilities permitted under this Act as the
22     Authority deems necessary or desirable to maintain an
23     adequate and dependable supply of electric power within the
24     service area.
25         (2) To determine the location, type, size,



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1     construction, lease, purchase, ownership, acquisition,
2     use, and operation of any generating, transmission, or
3     other related facility, except that in making such
4     determinations relating to electric power facilities the
5     Authority shall give primary consideration to the
6     construction of cogeneration and other high-efficiency
7     facilities and implementation of energy conservation and
8     load management programs.
9         (3) To proceed with the physical construction or
10     completion of any generating, transmission, or related
11     facility.
12         (4) To apply to the appropriate agencies and officials
13     of the federal and State governments for such licenses,
14     permits, or approval of its plans or projects as it may
15     deem necessary or advisable, and to accept such licenses,
16     permits, or approvals as may be tendered to it by such
17     agencies or officials, upon such terms and conditions as it
18     may deem appropriate.
19         (5) To institute suit, or to apply to any legislative
20     body for legislation, or to take such other action as it
21     may deem necessary or advisable in the furtherance of the
22     purposes of this Act and for the protection of its rights
23     if for any reason the Authority shall fail to secure any
24     such license, permit, or approval as it may deem necessary
25     or advisable.
26         (6) To study means of maintaining and attracting



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1     commerce and industry to the State.
2         (7) To develop programs and policies designed to
3     implement net-metering, to promote energy efficiency and
4     demand-response measures to shift demand from periods of
5     high demand to periods of low demand, and to facilitate
6     interconnection of (i) solar and wind generating
7     equipment; (ii) farm waste electric generating equipment;
8     and (iii) cogeneration facilities.
9         (8) To develop, with public participation, a
10     comprehensive least-cost analysis of demand for
11     electricity in Illinois that considers practical and
12     economical use of conservation, renewable energy
13     resources, and cogeneration for providing service to its
14     customers.
15         (9) To cooperate with and to enter into contractual
16     arrangements with private companies, public entities, any
17     schools and universities, and municipal and rural electric
18     cooperatives:
19             (i) with respect to the construction and operation
20         of facilities by the Authority and the sale of all or
21         part of the output therefrom;
22             (ii) with respect to the construction, completion,
23         acquisition, ownership, and operation of generating
24         facilities, fuel docks, sidings, loading or unloading
25         equipment, storage facilities, and other subsidiary
26         facilities and the disposition of the output of such



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1         generating facilities; and
2             (iii) with respect to the construction,
3         acquisition, ownership, operation, and use of
4         transmission facilities.
5         (10) To cooperate with and to enter into contractual
6     arrangements with local governments with respect to the
7     construction, improvement, rehabilitation, ownership, and
8     operation of generating facilities.
9         (11) To cooperate with and to enter into contractual
10     arrangements, in the discretion of the Authority, with the
11     Capital Development Board in connection with the planning,
12     siting, development, construction, operation, and
13     maintenance of generating facilities of the Authority.
14     Section 40. Acquisition of property by condemnation.
15     (a) In light of the importance of providing clean,
16 affordable, and reliable power for everyone in the State of
17 Illinois and in furtherance of the goals of this Act, the
18 Authority has the discretionary authorities as set forth in
19 this Section.
20     (b) In connection with the acquisition, development, and
21 operation of electric generating facilities, the Authority has
22 the right to enter upon, take, or damage private property or
23 any interest therein by exercise of the power of condemnation,
24 including quick-take powers, in the manner provided for under
25 the Eminent Domain Act (735 ILCS 30/), that are necessary and



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1 convenient for the operations of the Authority and its
2 subsidiaries. The operations of the Authority and any of its
3 subsidiaries are hereby recognized and declared to be affected
4 with a public interest and all of the property used in those
5 operations is hereby recognized and declared to be a public
6 use.
7     Section 50. Notes of the Authority. The Authority is
8 authorized from time to time to issue its negotiable notes in
9 conformity with applicable provisions of the Uniform
10 Commercial Code for any corporate purpose and to refund from
11 time to time any notes by the issuance of new notes, whether
12 the notes to be refunded have or have not matured. The
13 Authority may issue notes partly to refund notes or to
14 discharge other obligations then outstanding and partly for any
15 other corporate purpose of the Authority. The notes may be
16 authorized, sold, executed, and delivered in the same manner as
17 bonds. Any resolution authorizing notes of the Authority or any
18 issue thereof may contain any provisions that the Authority is
19 authorized to include in any resolution authorizing bonds of
20 the Authority or any issue thereof, and the Authority may
21 include in any notes any terms, covenants, or conditions that
22 it is authorized to include in any bonds.
23     Section 55. Contracts for the sale of electricity from
24 facilities owned by the Authority.



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1     (a) Contracts for the sale, transmission, and distribution
2 of power and energy generated by the Authority's projects shall
3 provide for the effectuation of the policies set forth in this
4 Act relating to its projects and shall ensure recovery of:
5         (1) All operating and maintenance expenses of the
6     projects.
7         (2) Interest on and amortization and reserve charges
8     sufficient within 50 years after the date of issuance to
9     retire the bonds of the Authority issued for the projects.
10     (b) The contracts shall also provide that:
11         (1) Notwithstanding any provisions in the Public
12     Utilities Act, wholesale purchasers of power and energy
13     from an Authority facility shall sell the power and energy
14     to retail customers at the same price paid to purchase
15     power and energy from the Authority.
16         (2) The purchaser shall make timely payment on all
17     bills rendered by the Authority.
18         (3) Violation of these contract terms, as well as such
19     other terms as the Authority may specify shall result in
20     cancellation and termination of the contract.
21         (4) Such other terms not inconsistent with the
22     provisions and policy of this Act as the Authority may deem
23     advisable.
24     (c) Contracts negotiated by the Authority as provided in
25 subsections (a) and (b) of this Section shall be entered into
26 and executed as follows:



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1         (1) After agreement upon the terms of the contracts has
2     been reached by the Authority and its co-party or
3     co-parties, the Authority shall promptly transmit a copy of
4     the proposed contract to the Governor, the Secretary of
5     State, the Attorney General, the Treasurer, the
6     Comptroller, and the legislative leaders of the General
7     Assembly and shall hold a public hearing or hearings upon
8     the terms thereof. At least 30 days' notice of the hearing
9     shall be given by publication once in each week during such
10     period in each of 6 newspapers within the State to be
11     selected by the Authority. Copies of proposed contracts
12     shall be available for public inspection during that period
13     of 30 days at the office or offices of the Authority and at
14     such other places throughout the State as it may designate.
15         (2) Following the public hearing, the Authority shall
16     reconsider the terms of the proposed contract or contracts
17     and shall negotiate such changes and modifications in the
18     contract or contracts as the Authority deems necessary or
19     advisable.
20         (3) When the contract or contracts are finally agreed
21     upon in terms satisfactory to the Authority and its
22     co-party or co-parties, and that the Authority believes to
23     be in the public interest, the Authority shall thereupon
24     report the proposed contract or contracts, together with
25     its recommendations and the record of the public hearings
26     thereon, to the Governor, the Secretary of State, the



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1     Attorney General, the Treasurer, the Comptroller, and the
2     General Assembly.
3         (4) The Attorney General shall review the contract to
4     ensure that it complies with all applicable laws and
5     prudent industry practices. If the Attorney General
6     determines that the contract meets all applicable laws or
7     prudent industry practices, then the trustees shall
8     approve the contract.
9         (5) The contract, after receiving the required number
10     of votes by the trustees, shall be executed by the
11     chairperson and secretary of the Authority and shall come
12     into full force and effect and be binding upon the
13     Authority and all other parties thereto in accordance with
14     its terms.
15     Section 60. Revenue bonds.
16     (a) The Authority shall have the continuing power to issue
17 revenue bonds, notes, or other evidences of indebtedness in an
18 aggregate amount not to exceed $4,000,000,000 for the purpose
19 of developing, constructing, acquiring, or improving projects
20 for acquiring and improving any property necessary and useful
21 in connection therewith, and for the purposes of the Employee
22 Ownership Assistance Act. The bonds must be issued under the
23 supervision of the Illinois Finance Authority, as set forth
24 under Section 825-13 of the Illinois Finance Authority Act. For
25 the purpose of evidencing the obligations of the Authority to



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1 repay any money borrowed, the Authority may, pursuant to
2 resolution, from time to time issue and dispose of its interest
3 bearing revenue bonds, notes, or other evidences of
4 indebtedness and may also from time to time issue and dispose
5 of such bonds, notes, or other evidences of indebtedness to
6 refund, at maturity, at a redemption date or in advance of
7 either, any revenue bonds, notes, or other evidences of
8 indebtedness pursuant to redemption provisions or at any time
9 before maturity. All such revenue bonds, notes, or other
10 evidences of indebtedness shall be payable solely from the
11 revenues or income to be derived from loans made with respect
12 to projects, from the leasing or sale of the projects, or from
13 any other funds available to the Authority for such purposes,
14 including, when so provided by ordinance of the Authority
15 authorizing the issuance of revenue bonds or notes. The revenue
16 bonds, notes, or other evidences of indebtedness may bear such
17 date or dates, may mature at such time or times not exceeding
18 40 years from their respective dates, may bear interest at such
19 rate or rates not exceeding the maximum rate permitted by the
20 Bond Authorization Act, may be in such form, may carry such
21 registration privileges, may be executed in such manner, may be
22 payable at such place or places, may be made subject to
23 redemption in such manner and upon such terms, with or without
24 premium as is stated on the face thereof, may be authenticated
25 in such manner, and may contain such terms and covenants as may
26 be provided by an applicable resolution.



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1     (b) The holder or holders of any revenue bonds, notes, or
2 other evidences of indebtedness issued by the Authority may
3 bring suits at law or proceedings in equity to compel the
4 performance and observance by any corporation or person or by
5 the Authority or any of its agents or employees of any contract
6 or covenant made with the holders of such revenue bonds, notes,
7 or other evidences of indebtedness, to compel such corporation,
8 person, the Authority, and any of its agents or employees to
9 perform any duties required to be performed for the benefit of
10 the holders of any such revenue bonds, notes, or other
11 evidences of indebtedness by the provision of the resolution
12 authorizing their issuance and to enjoin such corporation,
13 person, the Authority, and any of its agents or employees from
14 taking any action in conflict with any such contract or
15 covenant.
16     (c) If the Authority fails to pay the principal of or
17 interest on any of the revenue bonds or premium, if any, as the
18 same become due, a civil action to compel payment may be
19 instituted in the appropriate circuit court by the holder or
20 holders of the revenue bonds on which such default of payment
21 exists or by an indenture trustee acting on behalf of such
22 holders. Delivery of a summons and a copy of the complaint to
23 the Chairperson of the Board shall constitute sufficient
24 service to give the circuit court jurisdiction of the subject
25 matter of such a suit and jurisdiction over the Authority and
26 its officers named as defendants for the purpose of compelling



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1 such payment. Any case, controversy, or cause of action
2 concerning the validity of this Act relates to the revenue of
3 the State of Illinois.
4     (d) Notwithstanding the form and tenor of any such revenue
5 bonds, notes, or other evidences of indebtedness and in the
6 absence of any express recital on the face of any such revenue
7 bond, note, or other evidence of indebtedness that it is
8 nonnegotiable, all such revenue bonds, notes, and other
9 evidences of indebtedness shall be negotiable instruments.
10 Pending the preparation and execution of any such revenue
11 bonds, notes, or other evidences of indebtedness, temporary
12 revenue bonds, notes, or evidences of indebtedness may be
13 issued as provided by ordinance.
14     (e) To secure the payment of any or all of such revenue
15 bonds, notes, or other evidences of indebtedness, the revenues
16 to be received by the Authority from a lease agreement or loan
17 agreement shall be pledged, and, for the purpose of setting
18 forth the covenants and undertakings of the Authority in
19 connection with the issuance thereof and the issuance of any
20 additional revenue bonds, notes, or other evidences of
21 indebtedness payable from such revenues, income, or other funds
22 to be derived from projects, the Authority may execute and
23 deliver a mortgage or trust agreement. A remedy for any breach
24 or default of the terms of any such mortgage or trust agreement
25 by the Authority may be by mandamus proceedings in the
26 appropriate circuit court to compel the performance and



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1 compliance therewith, but the trust agreement may prescribe by
2 whom or on whose behalf the action may be instituted.
3     (f) The revenue bonds or notes shall be secured as provided
4 in the authorizing ordinance which may, notwithstanding any
5 other provision of this Act, include in addition to any other
6 security a specific pledge or assignment of and lien on or
7 security interest in any or all revenues or money of the
8 Authority from whatever source which may by law be used for
9 debt service purposes and a specific pledge or assignment of
10 and lien on or security interest in any funds or accounts
11 established or provided for by ordinance of the Authority
12 authorizing the issuance of such revenue bonds or notes.
13     (g) The State of Illinois pledges to and agrees with the
14 holders of the revenue bonds and notes of the Authority issued
15 pursuant to this Section that the State will not limit or alter
16 the rights and powers vested in the Authority by this Act so as
17 to impair the terms of any contract made by the Authority with
18 such holders or in any way impair the rights and remedies of
19 such holders until such revenue bonds and notes, together with
20 interest thereon, with interest on any unpaid installments of
21 interest, and all costs and expenses in connection with any
22 action or proceedings by or on behalf of such holders, are
23 fully met and discharged. The Authority is authorized to
24 include these pledges and agreements of the State in any
25 contract with the holders of revenue bonds or notes issued
26 pursuant to this Section.



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1     (h) In the event that the Authority determines that monies
2 of the Authority will not be sufficient for the payment of the
3 principal of and interest on its bonds during the next State
4 fiscal year, the Chairperson, as soon as practicable, shall
5 certify to the Governor the amount required by the Authority to
6 enable it to pay such principal of and interest on the bonds.
7 The Governor shall submit the amount so certified to the
8 General Assembly as soon as practicable, but no later than the
9 end of the current State fiscal year. This subsection (h) shall
10 apply only to any bonds or notes as to which the Authority
11 shall have determined, in the resolution authorizing the
12 issuance of the bonds or notes, that this subsection shall
13 apply. Whenever the Authority makes such a determination, that
14 fact shall be plainly stated on the face of the bonds or notes
15 and that fact shall also be reported to the Governor. In the
16 event of a withdrawal of moneys from a reserve fund established
17 with respect to any issue or issues of bonds of the Authority
18 to pay principal or interest on those bonds, the Chairperson of
19 the Authority, as soon as practicable, shall certify to the
20 Governor the amount required to restore the reserve fund to the
21 level required in the resolution or indenture securing those
22 bonds. The Governor shall submit the amount so certified to the
23 General Assembly as soon as practicable, but no later than the
24 end of the current State fiscal year. The Authority shall
25 obtain written approval from the Governor for any bonds and
26 notes to be issued under this Section.



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1     Section 65. State and local governments not liable on bonds
2 or notes. The bonds, notes, and other obligations of the
3 Authority shall not be a debt of the State or of any local
4 government, and neither the State nor any local government
5 shall be liable thereon. The Authority shall not have the power
6 to pledge the credit, the revenues, or the taxing power of the
7 State or of any local government, and neither the credit, the
8 revenues, nor the taxing power of the State or of any local
9 government shall be, or shall be deemed to be, pledged to the
10 payment of any bonds, notes, or other obligations of the
11 Authority. Each evidence of indebtedness of the Authority,
12 including the bonds and notes of the Authority, shall contain a
13 clear and explicit statement of the provisions of this Section.
14     Section 70. Deposit and investment of moneys of the
15 Authority.
16     (a) All moneys of the Authority from whatever source
17 derived, except as otherwise authorized or provided in this
18 Act, shall be paid to the treasurer of the Authority and shall
19 be deposited forthwith in a bank or banks designated by the
20 Authority. The moneys in such accounts shall be withdrawn on
21 the order of such person or persons as the Authority may
22 authorize.
23     (b) The Authority may contract with holders of any of its
24 bonds or notes, or any trustee therefor, as to the custody,



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1 collection, securing, investment, and payment of any moneys of
2 the Authority and of any moneys held in trust or otherwise for
3 the payment of bonds or notes, and to carry out any such
4 contract. Moneys held in trust or otherwise for the payment of
5 bonds or notes or in any way to secure bonds or notes and
6 deposits of such moneys and all banks and trust companies in
7 the State are authorized to give such security for such
8 deposits.
9     (c) Subject to agreements with noteholders and bondholders
10 or any trustee therefor, the Authority shall prescribe a
11 uniform system of accounts in accordance with generally
12 accepted accounting principles.
13     Section 75. Agreement of the State.
14     (a) The State of Illinois pledges and agrees with the
15 holders of any obligations issued under this Act and the
16 parties to any contracts with the Authority that the State will
17 not limit or alter the rights vested in the Authority until
18 those obligations together with the interest thereon are fully
19 met and discharged and those contracts are fully performed on
20 the part of the Authority, except that nothing in this Act
21 precludes such limitation or alteration if adequate provision
22 is made by law for the protection of the holders of the
23 obligations of the Authority, or those entering into such
24 contracts with the Authority. The Authority as agent for the
25 State is authorized to include this pledge and agreement by the



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1 State in all agreements with the holders of such obligations
2 and in all such contracts.
3     (b) Nothing in this Act shall be construed as diminishing
4 or enlarging any valid existing rights under any license
5 heretofore issued pursuant to the provisions of the Federal
6 Power Act.
7     Section 80. Exemption from taxation.
8     (a) It is hereby found and declared that the operation of
9 the Authority is primarily for the benefit of the people of the
10 State of Illinois, for the improvement of their health,
11 welfare, and prosperity, and has a public purpose, and the
12 Authority shall be regarded as performing an essential
13 governmental function in carrying out the provisions of this
14 Act.
15     (b) The Authority shall not be required to pay taxes or
16 assessments upon any of the property acquired or controlled by
17 it or upon its activities in the operation and maintenance
18 thereof or upon income derived therefrom, except that nothing
19 in this Act shall prevent the Authority from entering into
20 agreements to make payments in lieu of taxes with the governing
21 bodies of local governments with respect to property acquired
22 for any project when those payments are based solely on the
23 value of real property without regard to any improvement
24 thereof by the Authority.
25     (c) The securities and other obligations issued by the



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1 Authority, their transfer, and the income therefrom shall, at
2 all times, be free from taxation by the State or any local
3 government, except for estate and gift taxes.
4     (d) The securities and other obligations issued by the
5 Authority, their transfer, and the income therefrom shall, at
6 all times, be free from taxation within this State. It is
7 furthermore declared that the object and purpose of this Act is
8 that such projects shall be in all respects self-supporting.
9     Section 85. Repayment of State appropriations. All
10 appropriations made by the State to the Authority shall be
11 treated as advances by the State to the Authority, and shall be
12 repaid to the State without interest either out of the proceeds
13 of bonds issued by the Authority pursuant to this Act, or by
14 the delivery of non-interest bearing bonds of the Authority to
15 the State for all or any part of such advances, or out of
16 excess revenues of the Authority, at such times and on such
17 conditions as the State and the Authority mutually may agree
18 upon.
19     Section 90. ICC lacks jurisdiction. The generation,
20 transmission, distribution, and sale by the Authority of
21 electricity authorized by this Act and any other function or
22 duty of the Authority are not subject to the Public Utilities
23 Act or to the jurisdiction of the Illinois Commerce Commission.



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1     Section 95. Equal employment opportunity and
2 minority-owned and women-owned business enterprise programs.
3     (a) All contracts entered into by the Authority pursuant to
4 this Act of whatever nature and all documents soliciting bids
5 or proposals therefor shall contain or make reference to the
6 following provisions:
7         (1) The contractor will not discriminate against
8     employees or applicants for employment because of race,
9     creed, color, national origin, sex, age, disability, or
10     marital status, and will undertake or continue existing
11     programs of affirmative action to ensure that minority
12     group persons and women are afforded equal opportunity
13     without discrimination. Such programs shall include, but
14     not be limited to, recruitment, employment, job
15     assignment, promotion, upgrading, demotion, transfer,
16     layoff, termination, rates of pay or other forms of
17     compensation, and selection for training and retraining,
18     including apprenticeship and on-the-job training.
19         (2) At the request of the Authority, the contractor
20     shall request each employment agency, labor union, or
21     authorized representative of workers with which it has a
22     collective bargaining or other agreement or understanding
23     and that is involved in the performance of the contract
24     with the Authority to furnish a written statement that such
25     employment agency, labor union, or representative shall
26     not discriminate because of race, creed, color, national



HB4091 - 36 - LRB095 08900 MJR 34624 b

1     origin, sex, age, disability, or marital status and that
2     such union or representative will cooperate in the
3     implementation of the contractor's obligations under this
4     Act.
5         (3) The contractor shall state, in all solicitations or
6     advertisements for employees placed by or on behalf of the
7     contractor in the performance of the contract with the
8     Authority, that all qualified applicants will be afforded
9     equal employment opportunity without discrimination
10     because of race, creed, color, national origin, sex, age,
11     disability, or marital status.
12         (4) The contractor will include the provisions of
13     paragraphs (1) through (3) of this subsection in every
14     subcontract or purchase order in such a manner that the
15     provisions will be binding upon each subcontractor or
16     vendor as to its work in connection with the contract with
17     the Authority.
18     (b) The Authority shall establish measures, procedures,
19 and guidelines to ensure that contractors and subcontractors
20 undertake meaningful programs to employ and promote qualified
21 minority group members and women. The procedures may require,
22 after notice in a bid solicitation, the submission of a
23 minority and women workforce utilization program prior to the
24 award of any contract, or at any time thereafter, and may
25 require the submission of compliance reports relating to the
26 operation and implementation of any workforce utilization



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1 program. The Authority may take appropriate action, including
2 the imposition of sanctions for non-compliance, to effectuate
3 the provisions of this Section and shall be responsible for
4 monitoring compliance with this Act.
5     (c) In the performance of projects pursuant to this Act,
6 minority-owned and women-owned business enterprises shall be
7 given the opportunity for meaningful participation. The
8 Authority shall establish quantifiable standards and measures
9 and procedures to secure meaningful participation and identify
10 those contracts and items of work for which minority-owned and
11 women-owned business enterprises may best bid to actively and
12 affirmatively promote and assist their participation in
13 projects, so as to facilitate the award of a fair share of
14 contracts to such enterprises; except that nothing in this Act
15 shall be construed to limit the ability of the Authority to
16 assure that qualified minority-owned and women-owned business
17 enterprises may participate in the program.
18     The provisions of this subsection shall not be construed to
19 limit the ability of any minority business enterprise to bid on
20 any contract.
21     (d) In order to implement the requirements and objectives
22 of this Section, the Authority shall establish procedures to
23 monitor contractors compliance with provisions hereof, provide
24 assistance in obtaining competing qualified minority-owned and
25 women-owned business enterprises to perform contracts proposed
26 to be awarded, impose contractual sanctions for



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1 non-compliance, and take other appropriate measures to improve
2 the access of minority-owned and women-owned business
3 enterprises to these contracts.
4     Section 100. Authority subject to other Acts. The Authority
5 is subject to the provisions of the Open Meetings Act and the
6 Freedom of Information Act.
7     Section 105. Court proceedings; venue.
8     (a) The venue of any action or proceeding questioning the
9 validity of this Act shall be in the county in which the
10 principal office of the Authority is located.
11     (b) If any party appeals an award of compensation for the
12 taking by the Authority of stock or assets, that party shall
13 post a bond in such amount, if any, as the court of competent
14 jurisdiction shall deem appropriate to adequately protect the
15 interests of the other party under all the circumstances.
16     (c) All tort claims are subject to the Court of Claims Act.
17     Section 905. The Illinois Pension Code is amended by
18 changing Section 1-109.1 as follows:
19     (40 ILCS 5/1-109.1)  (from Ch. 108 1/2, par. 1-109.1)
20     Sec. 1-109.1. Allocation and Delegation of Fiduciary
21 Duties.
22     (1) Subject to the provisions of Section 22A-113 of this



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1 Code and subsections (2) and (3) of this Section, the board of
2 trustees of a retirement system or pension fund established
3 under this Code may:
4         (a) Appoint one or more investment managers as
5     fiduciaries to manage (including the power to acquire and
6     dispose of) any assets of the retirement system or pension
7     fund; and
8         (b) Allocate duties among themselves and designate
9     others as fiduciaries to carry out specific fiduciary
10     activities other than the management of the assets of the
11     retirement system or pension fund.
12     (2) The board of trustees of a pension fund established
13 under Article 5, 6, 8, 9, 10, 11, 12 or 17 of this Code may not
14 transfer its investment authority, nor transfer the assets of
15 the fund to any other person or entity for the purpose of
16 consolidating or merging its assets and management with any
17 other pension fund or public investment authority, unless the
18 board resolution authorizing such transfer is submitted for
19 approval to the contributors and pensioners of the fund at
20 elections held not less than 30 days after the adoption of such
21 resolution by the board, and such resolution is approved by a
22 majority of the votes cast on the question in both the
23 contributors election and the pensioners election. The
24 election procedures and qualifications governing the election
25 of trustees shall govern the submission of resolutions for
26 approval under this paragraph, insofar as they may be made



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1 applicable.
2     (3) Pursuant to subsections (h) and (i) of Section 6 of
3 Article VII of the Illinois Constitution, the investment
4 authority of boards of trustees of retirement systems and
5 pension funds established under this Code is declared to be a
6 subject of exclusive State jurisdiction, and the concurrent
7 exercise by a home rule unit of any power affecting such
8 investment authority is hereby specifically denied and
9 preempted.
10     (4) For the purposes of this Code, "emerging investment
11 manager" means a qualified investment adviser that manages an
12 investment portfolio of at least $10,000,000 but less than
13 $2,000,000,000 and is a "minority owned business" or "female
14 owned business" as those terms are defined in the Business
15 Enterprise for Minorities, Females, and Persons with
16 Disabilities Act.
17     It is hereby declared to be the public policy of the State
18 of Illinois to encourage the trustees of public employee
19 retirement systems to use emerging investment managers in
20 managing their system's assets to the greatest extent feasible
21 within the bounds of financial and fiduciary prudence, and to
22 take affirmative steps to remove any barriers to the full
23 participation of emerging investment managers in investment
24 opportunities afforded by those retirement systems.
25     Each retirement system subject to this Code shall prepare a
26 report to be submitted to the Governor and the General Assembly



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1 by September 1 of each year. The report shall identify the
2 emerging investment managers used by the system, the percentage
3 of the system's assets under the investment control of emerging
4 investment managers, and the actions it has undertaken to
5 increase the use of emerging investment managers, including
6 encouraging other investment managers to use emerging
7 investment managers as subcontractors when the opportunity
8 arises.
9     The use of an emerging investment manager does not
10 constitute a transfer of investment authority for the purposes
11 of subsection (2) of this Section.
12     (5) For the purposes of this Code, "Illinois Power
13 Authority" means the Authority created under the Illinois Power
14 Authority Act.
15     It is hereby declared to be the public policy of the State
16 of Illinois to encourage the trustees of public employee
17 retirement systems to invest their system's assets to the
18 greatest extent feasible within the bounds of financial and
19 fiduciary prudence in the Illinois Power Authority.
20     Each retirement system subject to this Code shall prepare a
21 report to be submitted to the Governor and the General Assembly
22 by September 1 of each year. The report shall identify
23 investments in the Illinois Power Authority, the percentage of
24 the system's assets invested in the Illinois Power Authority,
25 and the actions it has undertaken to increase investments in
26 the Illinois Power Authority.



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1 (Source: P.A. 94-471, eff. 8-4-05.)
2     Section 910. The Public Utilities Act is amended by
3 changing Section 3-105 as follows:
4     (220 ILCS 5/3-105)  (from Ch. 111 2/3, par. 3-105)
5     Sec. 3-105. Public utility. "Public utility" means and
6 includes, except where otherwise expressly provided in this
7 Section, every corporation, company, limited liability
8 company, association, joint stock company or association,
9 firm, partnership or individual, their lessees, trustees, or
10 receivers appointed by any court whatsoever that owns,
11 controls, operates or manages, within this State, directly or
12 indirectly, for public use, any plant, equipment or property
13 used or to be used for or in connection with, or owns or
14 controls any franchise, license, permit or right to engage in:
15         a. the production, storage, transmission, sale,
16     delivery or furnishing of heat, cold, power, electricity,
17     water, or light, except when used solely for communications
18     purposes;
19         b. the disposal of sewerage; or
20         c. the conveyance of oil or gas by pipe line.
21     "Public utility" does not include, however:
22         1. public utilities that are owned and operated by any
23     political subdivision, public institution of higher
24     education or municipal corporation of this State, or public



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1     utilities that are owned by such political subdivision,
2     public institution of higher education, or municipal
3     corporation and operated by any of its lessees or operating
4     agents;
5         2. water companies which are purely mutual concerns,
6     having no rates or charges for services, but paying the
7     operating expenses by assessment upon the members of such a
8     company and no other person;
9         3. electric cooperatives as defined in Section 3-119;
10         4. the following natural gas cooperatives:
11             (A) residential natural gas cooperatives that are
12         not-for-profit corporations established for the
13         purpose of administering and operating, on a
14         cooperative basis, the furnishing of natural gas to
15         residences for the benefit of their members who are
16         residential consumers of natural gas. For entities
17         qualifying as residential natural gas cooperatives and
18         recognized by the Illinois Commerce Commission as
19         such, the State shall guarantee legally binding
20         contracts entered into by residential natural gas
21         cooperatives for the express purpose of acquiring
22         natural gas supplies for their members. The Illinois
23         Commerce Commission shall establish rules and
24         regulations providing for such guarantees. The total
25         liability of the State in providing all such guarantees
26         shall not at any time exceed $1,000,000, nor shall the



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1         State provide such a guarantee to a residential natural
2         gas cooperative for more than 3 consecutive years; and
3             (B) natural gas cooperatives that are
4         not-for-profit corporations operated for the purpose
5         of administering, on a cooperative basis, the
6         furnishing of natural gas for the benefit of their
7         members and that, prior to 90 days after the effective
8         date of this amendatory Act of the 94th General
9         Assembly, either had acquired or had entered into an
10         asset purchase agreement to acquire all or
11         substantially all of the operating assets of a public
12         utility or natural gas cooperative with the intention
13         of operating those assets as a natural gas cooperative;
14         5. sewage disposal companies which provide sewage
15     disposal services on a mutual basis without establishing
16     rates or charges for services, but paying the operating
17     expenses by assessment upon the members of the company and
18     no others;
19         6. the Illinois Power Authority and its subsidiaries as
20     provided in Section 90 of the Illinois Power Authority Act
21     (Blank);
22         7. cogeneration facilities, small power production
23     facilities, and other qualifying facilities, as defined in
24     the Public Utility Regulatory Policies Act and regulations
25     promulgated thereunder, except to the extent State
26     regulatory jurisdiction and action is required or



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1     authorized by federal law, regulations, regulatory
2     decisions or the decisions of federal or State courts of
3     competent jurisdiction;
4         8. the ownership or operation of a facility that sells
5     compressed natural gas at retail to the public for use only
6     as a motor vehicle fuel and the selling of compressed
7     natural gas at retail to the public for use only as a motor
8     vehicle fuel; and
9         9. alternative retail electric suppliers as defined in
10     Article XVI.
11 (Source: P.A. 94-738, eff. 5-4-06.)
12     Section 930. The Eminent Domain Act is amended by adding
13 Sections 15-5-45 and 25-5-5 and by changing the heading of Part
14 5 of Article 25 as follows:
15     (735 ILCS 30/15-5-45 new)
16     Sec. 15-5-45. Eminent domain powers in new Acts. The
17 following provisions of law may include express grants of the
18 power to acquire property by condemnation or eminent domain:
19     Illinois Power Authority Act.
20     (735 ILCS 30/Art. 25, Pt. 5 heading)
Part 5. New Quick-take Powers
23 (Source: P.A. 94-1055, eff. 1-1-07.)



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1     (735 ILCS 30/25-5-5 new)
2     Sec. 25-5-5. Quick-take; Illinois Power Authority.
3 Quick-take proceedings under Article 20 may be used by the
4 Illinois Power Authority for the purposes specified in the
5 Illinois Power Authority Act.
6     Section 990. Severability. The provisions of this Act are
7 severable, and if any part or provision of this Act, or the
8 application thereof to any person or circumstance, is adjudged
9 by any court of competent jurisdiction to be invalid or
10 unenforceable, that judgment does not affect, impair, or
11 invalidate the remainder of this Act or the application of that
12 provision to any other person or circumstance, but shall be
13 confined in its operation to the provision, person, or
14 circumstance directly involved in the controversy in which the
15 judgment has been rendered.
16     Section 999. Effective date. This Act takes effect upon
17 becoming law.



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2 Statutes amended in order of appearance
3     New Act
4     40 ILCS 5/1-109.1 from Ch. 108 1/2, par. 1-109.1
5     220 ILCS 5/3-105 from Ch. 111 2/3, par. 3-105
6     735 ILCS 30/15-5-45 new
7     735 ILCS 30/Art. 25, Pt. 5
8     heading
9     735 ILCS 30/25-5-5 new