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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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1 |
| authorization. Under federal law, those allocations must be
|
2 |
| used on or before December 31, 2010. The State strongly |
3 |
| encourages counties and
municipalities to issue recovery zone |
4 |
| bonds to spur economic development in the State.
Under federal |
5 |
| law, the allocations may be voluntarily waived to the State for |
6 |
| reallocation
by the State to other jurisdictions and other |
7 |
| projects in the State. This Section sets forth the
process by |
8 |
| which the Authority, on behalf of the State, will receive |
9 |
| otherwise unused
allocations and ensure that this valuable |
10 |
| economic development incentive will be used to the
fullest |
11 |
| extent feasible for the benefit of the citizens of the State of |
12 |
| Illinois. |
13 |
| (b) Definitions. |
14 |
| (i) "Affected local government" means either any |
15 |
| county in the State or a
municipality within the State if |
16 |
| the municipality has a population of 100,000 or more. |
17 |
| (ii) "Allocation amount" means the $666,972,000 amount |
18 |
| of recovery zone economic development bonds and |
19 |
| $1,000,457,000 amount of recovery zone facility bonds |
20 |
| authorized under ARRA for the financing of qualifying |
21 |
| projects located within the State and the sub-allocation of |
22 |
| those amounts among each affected local government. |
23 |
| (iii) "ARRA" means, collectively, the American |
24 |
| Recovery and Reinvestment Act of 2009, including, without |
25 |
| limitation, Sections 1400U-1, 1400U-2, and 1400U-3 of the |
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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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| Code; the guidance provided by the Internal Revenue Service |
2 |
| applicable to recovery zone bonds; and any legislation |
3 |
| subsequently adopted by the United States Congress to |
4 |
| extend or expand the economic development bond financing |
5 |
| incentives authorized by ARRA. |
6 |
| (iv) "ARRA implementing regulations" means the |
7 |
| regulations promulgated by the Authority as further |
8 |
| described in subdivision (d)(iv) of this Section to |
9 |
| implement the provisions of this Section. |
10 |
| (v) "Code" means the Internal Revenue Code of 1986, as |
11 |
| amended. |
12 |
| (vi) "Recovery zone" means any area designated |
13 |
| pursuant to Section 1400U-1 of the Code. |
14 |
| (vii) "Recovery zone bond" means any recovery zone |
15 |
| economic development bond or recovery zone facility bond |
16 |
| issued pursuant to Sections 1400U-2 and 1400U-3, |
17 |
| respectively, of the Code. |
18 |
| (viii) "Recovery zone bond allocation" means an |
19 |
| allocation of authority to issue recovery zone bonds |
20 |
| granted pursuant to Section 1400U-1 of the Code. |
21 |
| (ix) "Regional authority" means the Central Illinois |
22 |
| Economic Development Authority, Eastern Illinois Economic |
23 |
| Development Authority, Joliet Arsenal Development |
24 |
| Authority, Quad Cities Regional Economic Development |
25 |
| Authority, Riverdale Development Authority, Southeastern |
26 |
| Illinois Economic Development Authority, Southern Illinois |
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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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| Development Authority, Southwestern Illinois Development |
2 |
| Authority, Tri-County River Valley Development Authority, |
3 |
| Upper Illinois River Valley Development Authority, |
4 |
| Illinois Urban Development Authority, Western Illinois |
5 |
| Economic Development Authority, or Will-Kankakee Regional |
6 |
| Development Authority. |
7 |
| (x) "Sub-allocation" means the portion of the |
8 |
| allocation amount allocated to each affected local |
9 |
| government. |
10 |
| (xi) "Waived recovery zone bond allocation" means the |
11 |
| amount of the recovery zone bond allocation voluntarily |
12 |
| waived by an affected local government. |
13 |
| (xii) "Waiver agreement" means an agreement between |
14 |
| the Authority and an
affected local government providing |
15 |
| for the voluntary waiver, in whole or in part, of that
|
16 |
| affected local government's sub-allocation to the |
17 |
| Authority. The waiver agreement may provide for the payment |
18 |
| of an affected local
government's reasonable fees and costs |
19 |
| as determined by the Authority in connection with
the |
20 |
| affected local government's voluntary waiver of its |
21 |
| sub-allocation. |
22 |
| (c) Additional findings. |
23 |
| It is found and declared that: |
24 |
| (i) it is in the public interest and for the benefit of |
25 |
| the State to maximize the use of economic development |
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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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| incentives authorized by ARRA; |
2 |
| (ii) those incentives include the maximum use of the |
3 |
| allocation amount for the issuance of recovery zone bonds |
4 |
| to promote job creation and economic development in any |
5 |
| area that has been designated as a recovery zone by an |
6 |
| affected local government under the applicable provisions |
7 |
| of ARRA; |
8 |
| (iii) those incentives also include the issuance by the |
9 |
| Authority of recovery zone bonds for the purposes of |
10 |
| financing qualifying projects to be financed with proceeds |
11 |
| of recovery zone bonds; and |
12 |
| (iv) the provisions of this Section reflect the State's |
13 |
| determination in good faith and in its discretion of the |
14 |
| reasonable manner in which waived recovery zone bond |
15 |
| allocations should be reallocated by the Authority. |
16 |
| (d) Powers of Authority. |
17 |
| (i) In order to carry out the provisions of ARRA and |
18 |
| further the purposes of this Section, the Authority has: |
19 |
| (A) the power to receive from any affected local |
20 |
| government its sub-allocation that it voluntarily |
21 |
| waives to the Authority, in whole or in part, for |
22 |
| reallocation by the Authority to a regional authority |
23 |
| specifically designated by that affected local |
24 |
| government, and the Authority shall reallocate that |
25 |
| waived recovery zone bond allocation to the regional |
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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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| authority specifically designated by that affected |
2 |
| local government; provided that (1) the affected local |
3 |
| government must take official action by resolution or |
4 |
| ordinance, as applicable, to waive the sub-allocation |
5 |
| to the Authority and specifically designate that its |
6 |
| waived recovery zone bond allocation should be |
7 |
| reallocated to a regional authority; (2) the regional |
8 |
| authority must use the sub-allocation to issue |
9 |
| recovery zone bonds on or before August 16, 2010 and, |
10 |
| if recovery zone bonds are not issued on or before |
11 |
| August 16, 2010, the sub-allocation shall be deemed |
12 |
| waived to the Authority for reallocation by the |
13 |
| Authority to qualifying projects; and (3) the proceeds |
14 |
| of the recovery zone bonds must be used for qualified |
15 |
| projects within the jurisdiction of the applicable |
16 |
| regional authority; |
17 |
| (B) at the Authority's sole discretion, the power |
18 |
| to reallocate any sub-allocation deemed waived to the |
19 |
| Authority pursuant to subsection (d)(i)(A)(2) back to |
20 |
| the regional authority that had the sub-allocation; |
21 |
| (C) the power to enter into waiver agreements with |
22 |
| affected local governments
to provide for their |
23 |
| voluntary waivers, in whole or in part, of their |
24 |
| sub-allocations, to
receive waived recovery zone bond |
25 |
| allocations from those affected local governments, and |
26 |
| to use those waived recovery zone bond allocations, in |
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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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| whole or in part, to issue recovery zone bonds of the |
2 |
| Authority for qualifying projects or to reallocate |
3 |
| those waived recovery zone bond allocations, in whole |
4 |
| or in part, to a county or municipality to issue its |
5 |
| own recovery zone bonds for qualifying projects; |
6 |
| (D) the power to designate areas within the State |
7 |
| as recovery zones or all of the State as a recovery |
8 |
| zone; and |
9 |
| (E) the power to issue recovery zone bonds for any |
10 |
| project authorized to be financed with proceeds |
11 |
| thereof under the applicable provisions of ARRA. |
12 |
| (ii) In addition to the powers set forth in item (i), |
13 |
| the Authority shall be the sole recipient, on behalf of the |
14 |
| State, of any waived recovery zone bond allocations. |
15 |
| Recovery zone bond allocations can be waived to the |
16 |
| Authority only by voluntary waiver as provided in this |
17 |
| Section. |
18 |
| (iii) In addition to the powers set forth in items (i) |
19 |
| and (ii), the Authority has any powers otherwise enjoyed by |
20 |
| the Authority in connection with the issuance of its bonds |
21 |
| if those powers are not in conflict with any provisions |
22 |
| with respect to recovery zone bonds set forth in ARRA. |
23 |
| (iv) The Authority has the power to adopt regulations |
24 |
| providing for the implementation of any of the provisions |
25 |
| contained in this Section, including provisions regarding |
26 |
| waiver agreements and the reallocation of all or any |
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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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|
1 |
| portion of the allocation amount and sub-allocations and |
2 |
| the issuance of recovery zone bonds; except that those |
3 |
| regulations shall not (1) apply to or affect any |
4 |
| designation of a recovery zone by a county or municipality, |
5 |
| (2) provide for any waiver or reallocation of an affected |
6 |
| local government's sub-allocation other than a voluntary |
7 |
| waiver as described in subsection (d), or (3) be |
8 |
| inconsistent with the provisions of subsection (d)(i). |
9 |
| Regulations adopted by the Authority for determining |
10 |
| reallocation of all or any portion of a waived recovery |
11 |
| zone bond allocation may include, but are not limited to, |
12 |
| (1) the ability of the county or municipality to issue |
13 |
| recovery zone bonds on or before December 31, 2010, (2) the |
14 |
| amount of jobs that will be retained or created, or both, |
15 |
| by the qualifying project to be financed by recovery zone |
16 |
| bonds, and (3) the geographical proximity of the qualifying |
17 |
| project to be financed by recovery zone bonds to a county |
18 |
| or municipality that voluntarily waived its sub-allocation |
19 |
| to the Authority. |
20 |
| (v) Unless extended by an act of the United States |
21 |
| Congress, no recovery zone
bonds may be issued after |
22 |
| December 31, 2010. |
23 |
| (e) Established dates for notice. |
24 |
| Any affected local government or any regional authority |
25 |
| that has issued recovery zone bonds on or before the effective |
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09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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| date of this Section must report its issuance of recovery zone |
2 |
| bonds to the Authority within 30 days after the effective date |
3 |
| of this Section. After the effective date of this Section, any |
4 |
| affected local government or any regional authority must report |
5 |
| its issuance of recovery zone bonds to the Authority not less |
6 |
| than 30 days after those bonds are issued. |
7 |
| (f) Reports to the General Assembly. |
8 |
| Starting 60 days after the effective date of this Section |
9 |
| and ending on January 15, 2011, the Authority shall file a |
10 |
| report before the 15th day of each month with the General |
11 |
| Assembly detailing its implementation of this Section, |
12 |
| including but not limited to the dollar amount of the |
13 |
| allocation amount that has been reallocated by the Authority |
14 |
| pursuant to this Section, the recovery zone bonds issued in the |
15 |
| State as of the date of the report, and descriptions of the |
16 |
| qualifying projects financed by those recovery zone bonds. |
17 |
| (20 ILCS 3501/825-110 new) |
18 |
| Sec. 825-110. Implementation of ARRA provisions regarding |
19 |
| qualified energy conservation bonds. |
20 |
| (a) Definitions. |
21 |
| (i) "Affected local government" means any county or |
22 |
| municipality within the
State if the county or municipality |
23 |
| has a population of 100,000 or more, as defined in
Section |
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09600HB2369sam003 |
- 10 - |
LRB096 10118 RCE 40889 a |
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1 |
| 54D(e)(2)(C) of the Code. |
2 |
| (ii) "Allocation amount" means the $133,846,000 amount |
3 |
| of qualified energy conservation bonds authorized under |
4 |
| ARRA for the financing of qualifying projects located |
5 |
| within the State and the sub-allocation of those amounts |
6 |
| among each affected local government. |
7 |
| (iii) "ARRA" means, collectively, the American |
8 |
| Recovery and Reinvestment Act of 2009, including, without |
9 |
| limitation, Section 54D of the Code; the guidance provided |
10 |
| by the Internal Revenue Service applicable to qualified |
11 |
| energy conservation bonds; and any legislation |
12 |
| subsequently adopted by the United States Congress to |
13 |
| extend or expand the economic development bond financing |
14 |
| incentives authorized by ARRA. |
15 |
| (iv) "ARRA implementing regulations" means the |
16 |
| regulations promulgated by the Authority as further |
17 |
| described in subdivision (c)(iv) of this Section to |
18 |
| implement the provisions of this Section. |
19 |
| (v) "Code" means the Internal Revenue Code of 1986, as |
20 |
| amended. |
21 |
| (vi) "Qualified energy conservation bond" means any |
22 |
| qualified energy conservation bond issued pursuant to |
23 |
| Section 54D of the Code. |
24 |
| (vii) "Qualified energy conservation bond allocation" |
25 |
| means an allocation of authority to issue qualified energy |
26 |
| conservation bonds granted pursuant to Section 54D of the |
|
|
|
09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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|
1 |
| Code. |
2 |
| (viii) "Regional authority" means the Central Illinois |
3 |
| Economic Development Authority, Eastern Illinois Economic |
4 |
| Development Authority, Joliet Arsenal Development |
5 |
| Authority, Quad Cities Regional Economic Development |
6 |
| Authority, Riverdale Development Authority, Southeastern |
7 |
| Illinois Economic Development Authority, Southern Illinois |
8 |
| Development Authority, Southwestern Illinois Development |
9 |
| Authority, Tri-County River Valley Development Authority, |
10 |
| Upper Illinois River Valley Development Authority, |
11 |
| Illinois Urban Development Authority, Western Illinois |
12 |
| Economic Development Authority, or Will-Kankakee Regional |
13 |
| Development Authority. |
14 |
| (ix) "Sub-allocation" means the portion of the |
15 |
| allocation amount allocated to each affected local |
16 |
| government. |
17 |
| (x) "Waived qualified energy conservation bond |
18 |
| allocation" means the amount of the qualified energy |
19 |
| conservation bond allocation that an affected local |
20 |
| government elects to reallocate to the State pursuant to |
21 |
| Section 54D(e)(2)(B) of the Code. |
22 |
| (xi) "Waiver agreement" means an agreement between the |
23 |
| Authority and an
affected local government providing for |
24 |
| the reallocation, in whole or in part, of that
affected |
25 |
| local government's sub-allocation to the Authority. The |
26 |
| waiver agreement may provide for the payment of an affected |
|
|
|
09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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|
1 |
| local
government's reasonable fees and costs as determined |
2 |
| by the Authority in connection with
the affected local |
3 |
| government's reallocation of its sub-allocation. |
4 |
| (b) Findings. |
5 |
| It is found and declared that: |
6 |
| (i) it is in the public interest and for the benefit of |
7 |
| the State to maximize the use of economic development |
8 |
| incentives authorized by ARRA; |
9 |
| (ii) those incentives include the maximum use of the |
10 |
| allocation amount for the issuance of qualified energy |
11 |
| conservation bonds to promote energy conservation under |
12 |
| the applicable provisions of ARRA; and |
13 |
| (iii) those incentives also include the issuance by the |
14 |
| Authority of qualified energy conservation bonds for the |
15 |
| purposes of financing qualifying projects to be financed |
16 |
| with proceeds of qualified energy conservation bonds. |
17 |
| (c) Powers of Authority. |
18 |
| (i) In order to carry out the provisions of ARRA and |
19 |
| further the purposes of this Section, the Authority has: |
20 |
| (A) the power to receive from any affected local |
21 |
| government its sub-allocation that it voluntarily |
22 |
| waives to the Authority, in whole or in part, for |
23 |
| allocation by the Authority to a regional authority |
24 |
| specifically designated by that affected local |
|
|
|
09600HB2369sam003 |
- 13 - |
LRB096 10118 RCE 40889 a |
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|
1 |
| government, and the Authority shall reallocate that |
2 |
| waived qualified energy conservation bond allocation |
3 |
| to the regional authority specifically designated by |
4 |
| that affected local government; provided that (1) the |
5 |
| affected local government must take official action by |
6 |
| resolution or ordinance, as applicable, to waive the |
7 |
| sub-allocation to the Authority and specifically |
8 |
| designate that its waived qualified energy |
9 |
| conservation bond allocation should be reallocated to |
10 |
| a regional authority; (2) the regional authority must |
11 |
| use the sub-allocation to issue qualified energy |
12 |
| conservation bonds on or before August 16, 2010 and, if |
13 |
| qualified energy conservation bonds are not issued on |
14 |
| or before August 16, 2010, the sub-allocation shall be |
15 |
| deemed waived to the Authority for reallocation by the |
16 |
| Authority to qualifying projects; and (3) the proceeds |
17 |
| of the qualified energy conservation bonds must be used |
18 |
| for qualified projects within the jurisdiction of the |
19 |
| applicable regional authority; |
20 |
| (B) at the Authority's sole discretion, the power |
21 |
| to reallocate any sub-allocation deemed waived to the |
22 |
| Authority pursuant to subsection (c)(i)(A)(2) back to |
23 |
| the Regional Authority that had the sub-allocation; |
24 |
| (C) the power to enter into waiver agreements with |
25 |
| affected local
governments to provide for the |
26 |
| reallocation, in whole or in part, of their |
|
|
|
09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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|
1 |
| sub-allocations,
to receive waived qualified energy |
2 |
| conservation bond allocations from those affected |
3 |
| local governments, and to use those waived qualified |
4 |
| energy conservation bond allocations, in whole or in |
5 |
| part, to issue qualified energy conservation bonds of |
6 |
| the Authority for qualifying projects or to reallocate |
7 |
| those qualified energy conservation bond allocations, |
8 |
| in whole or in part, to a county or municipality to |
9 |
| issue its own energy conservation bonds for qualifying |
10 |
| projects; and |
11 |
| (D) the power to issue qualified energy |
12 |
| conservation bonds for any project authorized to be |
13 |
| financed with proceeds thereof under the applicable |
14 |
| provisions of ARRA. |
15 |
| (ii) In addition to the powers set forth in item (i), |
16 |
| the Authority shall be the sole recipient, on behalf of the |
17 |
| State, of any waived qualified energy conservation bond |
18 |
| allocations. Qualified energy conservation bond |
19 |
| allocations can be reallocated to the Authority only by |
20 |
| voluntary waiver as provided in this Section. |
21 |
| (iii) In addition to the powers set forth in items (i) |
22 |
| and (ii), the Authority has any powers otherwise enjoyed by |
23 |
| the Authority in connection with the issuance of its bonds |
24 |
| if those powers are not in conflict with any provisions |
25 |
| with respect to qualified energy conservation bonds set |
26 |
| forth in ARRA. |
|
|
|
09600HB2369sam003 |
- 15 - |
LRB096 10118 RCE 40889 a |
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|
1 |
| (iv) The Authority has the power to adopt regulations |
2 |
| providing for the implementation of any of the provisions |
3 |
| contained in this Section, including the provisions |
4 |
| regarding waiver agreements and reallocation of all or any |
5 |
| portion of the allocation amount and sub-allocations and |
6 |
| the issuance of qualified energy conservation bonds; |
7 |
| except that those regulations shall not (1) provide any |
8 |
| waiver or reallocation of an affected local government's |
9 |
| sub-allocation other than a voluntary waiver as described |
10 |
| in subsection (c) or (2) be inconsistent with the |
11 |
| provisions of subsection (c)(i). Regulations adopted by |
12 |
| the Authority for determining reallocation of all or any |
13 |
| portion of a waived qualified energy conservation |
14 |
| allocation may include, but are not limited to, (1) the |
15 |
| ability of the county or municipality to issue qualified |
16 |
| energy conservation bonds by the end of a given calendar |
17 |
| year, (2) the amount of jobs that will be retained or |
18 |
| created, or both, by the qualifying project to be financed |
19 |
| by qualified energy conservation bonds, and (3) the |
20 |
| geographical proximity of the qualifying project to be |
21 |
| financed by qualified energy conservation bonds to a |
22 |
| municipality or county that reallocated its sub-allocation |
23 |
| to the Authority. |
24 |
| (d) Established dates for notice. |
25 |
| Any affected local government or regional authority that |
|
|
|
09600HB2369sam003 |
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LRB096 10118 RCE 40889 a |
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|
1 |
| has issued qualified energy conservation bonds on or before the |
2 |
| effective date of this Section must report its issuance of |
3 |
| qualified energy conservation bonds to the Authority within 30 |
4 |
| days after the effective date of this Section. After the |
5 |
| effective date of this Section, any affected local government |
6 |
| or any regional authority must report its issuance of qualified |
7 |
| energy conservation bonds to the Authority not less than 30 |
8 |
| days after those bonds are issued. |
9 |
| (e) Reports to the General Assembly. |
10 |
| Starting 60 days after the effective date of this Section |
11 |
| and ending when there is no longer any allocation amount, the |
12 |
| Authority shall file a report before the 15th day of each month |
13 |
| with the General Assembly detailing its implementation of this |
14 |
| Section, including but not limited to the dollar amount of the |
15 |
| allocation amount that has been reallocated by the Authority |
16 |
| pursuant to this Section, the qualified energy conservation |
17 |
| bonds issued in the State as of the date of the report, and |
18 |
| descriptions of the qualifying projects financed by those |
19 |
| qualified energy conservation bonds.
|
20 |
| Section 99. Effective date. This Act takes effect upon |
21 |
| becoming law.".
|