Public Act 101-0169
 
HB3501 EnrolledLRB101 09037 AWJ 54130 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Assessed Clean Energy Act is
amended by changing Sections 5, 10, 15, 20, 25, 30, and 35 and
by adding Sections 42, 45, and 50 as follows:
 
    (50 ILCS 50/5)
    Sec. 5. Definitions. As used in this Act:
    "Alternative energy improvement" means any fixture,
product, system, equipment, device, material, or interacting
group thereof intended the installation or upgrade of
electrical wiring, outlets, or charging stations to charge a
motor vehicle that is fully or partially powered by
electricity, including, but not limited to, electrical wiring,
outlets, or charging stations.
    "Assessment" means a special assessment imposed by a
governmental unit pursuant to an assessment contract.
    "Assessment contract" means a voluntary written contract
between the applicable governmental local unit of government
(or a permitted assignee) and record owner governing the terms
and conditions of financing and assessment under a program.
    "Authority" means the Illinois Finance Authority.
    "Capital provider" means any credit union, federally
insured depository institution, insurance company, trust
company, or other entity approved by a governmental unit or its
program administrator or program administrators that finances
or refinances an energy project by purchasing PACE bonds issued
by the governmental unit or the Authority for that purpose.
"Capital provider" also means any special purpose vehicle that
is directly or indirectly wholly owned by one or more of the
entities listed in this definition or any bond underwriter.
    "PACE area" means an area within the jurisdictional
boundaries of a local unit of government created by an
ordinance or resolution of the local unit of government to
provide financing for energy projects under a property assessed
clean energy program. A local unit of government may create
more than one PACE area under the program, and PACE areas may
be separate, overlapping, or coterminous.
    "Energy efficiency improvement" means any fixture,
product, system, equipment, device, material, or interacting
group thereof devices, or materials intended to decrease energy
consumption or enable promote a more efficient use of
electricity, natural gas, propane, or other forms of energy on
property, including, but not limited to, all of the following:
        (1) insulation in walls, roofs, floors, foundations,
    or heating and cooling distribution systems;
        (2) energy efficient storm windows and doors,
    multi-glazed windows and doors, heat-absorbing or
    heat-reflective glazed and coated window and door systems,
    and additional glazing, reductions in glass area, and other
    window and door systems system modifications that reduce
    energy consumption;
        (3) automated energy or water control systems;
        (4) high efficiency heating, ventilating, or
    air-conditioning and distribution systems system
    modifications or replacements;
        (5) caulking, weather-stripping, and air sealing;
        (6) replacement or modification of lighting fixtures
    to reduce the energy use of the lighting system;
        (7) energy controls or recovery systems;
        (8) day lighting systems;
        (8.1) any energy efficiency project, as defined in
    Section 825-65 of the Illinois Finance Authority Act; and
        (9) any other fixture, product, system, installation
    or modification of equipment, device, or material intended
    devices, or materials approved as a utility or other
    cost-savings measure as approved by the governmental unit
    governing body.
    "Energy project" means the acquisition, construction,
installation, or modification of an alternative energy
improvement, energy efficiency improvement, renewable energy
improvement, resiliency improvement, or water use improvement,
or the acquisition, installation, or improvement of a renewable
energy system that is affixed to real a stabilized existing
property (including new construction).
    "Governing body" means the legislative body, council,
board, commission, trustees, or any other body by whatever name
it is known having charge of the corporate affairs of a
governmental unit county board or board of county commissioners
of a county, the city council of a city, or the board of
trustees of a village.
    "Governmental Local unit of government" means any a county
or municipality , city, or village.
    "PACE area" means an area within the jurisdictional
boundaries of a governmental unit created by an ordinance or
resolution of the governmental unit to provide financing for
energy projects under a property assessed clean energy program.
A governmental unit may create more than one PACE area under
the program and PACE areas may be separate, overlapping, or
coterminous.
    "PACE bond" means any bond, note, or other evidence of
indebtedness representing an obligation to pay money,
including refunding bonds, issued under or in accordance with
Section 35.
    "Permitted assignee" means (i) the Authority any body
politic and corporate, (ii) any bond trustee, or (iii) any
capital provider warehouse lender, or (iv) any other assignee
of a governmental local unit of government designated by the
governmental unit in an assessment contract.
    "Person" means an individual, firm, partnership,
association, corporation, limited liability company,
unincorporated joint venture, trust, or any other type of
entity that is recognized by law and has the title to or
interest in property. "Person" does not include a local unit of
government or a homeowner's or condominium association, but
does include other governmental entities that are not local
units of government.
    "Program administrator" means a for-profit entity or a
not-for-profit not-for profit entity that will administer a
program on behalf of or at the discretion of the governmental
unit local unit of government. It or its affiliates,
consultants, or advisors shall have done business as a program
administrator or capital provider for a minimum of 18 months
and shall be responsible for arranging capital for the
acquisition of bonds issued by the local unit of government or
the Authority to finance energy projects.
    "Property" means any privately-owned commercial,
industrial, non-residential agricultural, or multi-family (of
5 or more units) real property or any real property owned by a
not-for-profit located within the governmental local unit of
government, but does not include any real property owned by a
governmental local unit of government or a homeowner's or
condominium association.
    "Property assessed clean energy program" or "program"
means the program of a governmental unit to provide financing
or refinancing for energy projects within PACE areas it has
created under Section 10 and Section 15 a program as described
in Section 10.
    "Record owner" means the titleholder or person who is the
titleholder or owner of the beneficial interest in real
property.
    "Renewable energy improvement" means any fixture, product,
system, equipment, device, material, or interacting group
thereof on the property of the record owner that uses one or
more renewable energy resources to generate electricity,
including any renewable energy project, as defined in Section
825-65 of the Illinois Finance Authority Act.
    "Renewable energy resource" includes energy and its
associated renewable energy credit or renewable energy credits
from wind energy, solar thermal energy, geothermal energy,
photovoltaic cells and panels, biodiesel, anaerobic digestion,
and hydropower that does not involve new construction or
significant expansion of hydropower dams. For purposes of this
Act, landfill gas produced in the State is considered a
renewable energy resource. The term "renewable energy
resources" does not include the incineration or burning of any
solid material.
    "Renewable energy system" means a fixture, product,
device, or interacting group of fixtures, products, or devices
on the customer's side of the meter that use one or more
renewable energy resources to generate electricity, and
specifically includes any renewable energy project, as defined
in Section 825-65 of the Illinois Finance Authority Act.
    "Resiliency improvement" means any fixture, product,
system, equipment, device, material, or interacting group
thereof intended to increase resilience or improve the
durability of infrastructure, including but not limited to,
seismic retrofits, flood mitigation, fire suppression, wind
resistance, energy storage, microgrids, and backup power
generation.
    "Warehouse fund" means any fund or account established by a
governmental unit, the Authority, or a capital provider local
unit of government, body politic and corporate, or warehouse
lender.
    "Warehouse lender" means any financial institution
participating in a PACE area that finances an energy project
from lawfully available funds in anticipation of issuing bonds
as described in Section 35.
    "Water use improvement" means any resiliency improvement,
fixture, product, system, equipment, device, material, or
interacting group thereof intended to conserve for or serving
any property that has the effect of conserving water resources
or improve water quality on property, including, but not
limited to, all of the following: through improved
        (1) water management or efficiency systems; .
        (2) water recycling;
        (3) capturing, reusing, managing, and treating
    stormwater;
        (4) bioretention, trees, green roofs, porous
    pavements, or cisterns for maintaining or restoring
    natural hydrology;
        (5) replacing or otherwise abating or mitigating the
    use of lead pipes in the supply of water; and
        (6) any other resiliency improvement, fixture,
    product, system, equipment, device, or material intended
    as a utility or other cost-savings measure as approved by
    the governmental unit.
(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19;
revised 9-28-18.)
 
    (50 ILCS 50/10)
    Sec. 10. Property assessed clean energy program; creation.
    (a) Pursuant to the procedures provided in Section 15, a
governmental a local unit of government may establish a
property assessed clean energy program and, from time to time,
create a PACE area or PACE areas under the program.
    (b) Under a program, the governmental local unit of
government may enter into an assessment contract with the
record owner of property within a PACE area to finance or
refinance one or more energy projects on the property. The
assessment contract shall provide for the repayment of all or a
portion of the cost of an energy project through assessments
upon the property benefited. The amount of the financing or
refinancing may include any and all of the following: the cost
of materials and labor necessary for acquisition,
construction, installation, or modification of the energy
project, permit fees, inspection fees, application and
administrative fees, financing fees, reserves, capitalized
interest, costs of billing the assessment bank fees, and all
other fees, costs, and expenses that may be incurred by the
record owner pursuant to the acquisition, construction,
installation, or modification of the energy project, and the
costs of issuance of PACE bonds on a specific or pro rata
basis, as determined by the governmental local unit of
government and may also include a prepayment premium.
    (b-5) A governmental local unit of government may sell or
assign, for consideration, any and all assessment contracts;
the permitted assignee of the assessment contract shall have
and possess the delegable same powers and rights at law or in
equity as the applicable governmental local unit of government
and its tax collector would have if the assessment contract had
not been assigned with regard to (i) the precedence and
priority of liens evidenced by the assessment contract, (ii)
the accrual of interest, and (iii) the fees and expenses of
collection. The permitted assignee shall have the right same
rights to enforce such liens pursuant to subsection (a) of
Section 30 as any private party holding a lien on real
property, including, but not limited to, foreclosure. Costs and
reasonable attorney's fees incurred by the permitted assignee
as a result of any foreclosure action or other legal proceeding
brought pursuant to this Act Section and directly related to
the proceeding shall be assessed in any such proceeding against
each record owner subject to the proceedings. A governmental
unit or the Authority may sell or assign assessment contracts
without competitive bidding or the solicitation of requests for
proposals or requests for qualifications Such costs and fees
may be collected by the assignee at any time after demand for
payment has been made by the permitted assignee.
    (c) A program shall may be administered by either one or
more than one program administrators or the governmental local
unit, as determined by the governing body of government.
(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
    (50 ILCS 50/15)
    Sec. 15. Program established.
    (a) To establish a property assessed clean energy program,
the governing body of a local unit of government shall adopt a
resolution or ordinance that includes all of the following:
        (1) a finding that the financing or refinancing of
    energy projects is a valid public purpose;
        (2) a statement of intent to facilitate access to
    capital (which may be from one or more program
    administrators or as otherwise permitted by this Act) to
    provide funds for energy projects, which will be repaid by
    assessments on the property benefited with the agreement of
    the record owners;
        (3) a description of the proposed arrangements for
    financing the program through the issuance of PACE bonds
    under or in accordance with Section 35, which PACE bonds
    may be purchased by one or more capital providers , which
    may be through one or more program administrators;
        (4) the types of energy projects that may be financed
    or refinanced;
        (5) a description of the territory within the PACE
    area;
        (6) a transcript of public comments if any
    discretionary public hearing reference to a report on the
    proposed program was previously held by the governmental
    unit prior to the consideration of the resolution or
    ordinance establishing the program; and as described in
    Section 20;
        (7) (blank); the time and place for a public hearing to
    be held by the local unit of government if required for the
    adoption of the proposed program by resolution or
    ordinance;
        (8) the report on the proposed program as described in
    matters required by Section 20 to be included in the
    report; for this purpose, the resolution or ordinance may
    incorporate the report or an amended version thereof by
    reference; and shall be available for public inspection.
        (9) (blank). a description of which aspects of the
    program may be amended without a new public hearing and
    which aspects may be amended only after a new public
    hearing is held.
    (b) A property assessed clean energy program may be amended
in accordance with by resolution or ordinance of the governing
body. Adoption of the resolution or ordinance establishing the
program shall be preceded by a public hearing if required.
(Source: P.A. 100-77, eff. 8-11-17; 100-863, eff. 8-14-18;
100-980, eff. 1-1-19.)
 
    (50 ILCS 50/20)
    Sec. 20. Program Report. The report on the proposed program
required under Section 15 shall include all of the following:
        (1) a form of assessment contract between the
    governmental local unit of government and record owner
    governing the terms and conditions of financing and
    assessment under the program; .
        (2) identification of one or more officials an official
    authorized to enter into an assessment contract on behalf
    of the governmental local unit of government;
        (3) (blank); a maximum aggregate annual dollar amount
    for all financing to be provided by the applicable program
    administrator under the program;
        (4) an application process and eligibility
    requirements for financing or refinancing energy projects
    under the program;
        (5) a method for determining interest rates on amounts
    financed or refinanced under assessment contracts
    installments, repayment periods, and the maximum amount of
    an assessment, if any;
        (6) an explanation of the process for billing and
    collecting how assessments will be made and collected;
        (7) a plan to raise capital to finance improvements
    under the program pursuant to the issuance sale of PACE
    bonds under or in accordance with Section 35; , subject to
    this Act or the Special Assessment Supplemental Bond and
    Procedures Act, or alternatively, through the sale of bonds
    by the Authority pursuant to subsection (d) of Section
    825-65 of the Illinois Finance Authority Act;
        (8) information regarding all of the following, to the
    extent known, or procedures to determine the following in
    the future:
            (A) any revenue source or reserve fund or funds to
        be used as security for PACE bonds described in
        paragraph (7); and
            (B) any application, administration, or other
        program fees to be charged to record owners
        participating in the program that will be used to
        finance and reimburse all or a portion of costs
        incurred by the governmental local unit of government
        as a result of its the program;
        (9) a requirement that the term of an assessment not
    exceed the useful life of the energy project financed or
    refinanced under an assessment contract; provided that an
    assessment contract financing or refinancing multiple
    energy projects with varying lengths of useful life may
    have a term that is calculated in accordance with the
    principles established by the program report paid for by
    the assessment; provided that the local unit of government
    may allow projects that consist of multiple improvements
    with varying lengths of useful life to have a term that is
    no greater than the improvement with the longest useful
    life;
        (10) a requirement for an appropriate ratio of the
    amount of the assessment to the greater of any of the
    following: assessed value of the property or market value
    of the property as determined by a recent appraisal no
    older than 12 months;
            (A) the value of the property as determined by the
        office of the county assessor; or
            (B) the value of the property as determined by an
        appraisal conducted by a licensed appraiser;
        (11) a requirement that the record owner of property
    subject to a mortgage obtain written consent from the
    mortgage holder before participating in the program;
        (12) provisions for marketing and participant
    education; and
        (13) (blank); provisions for an adequate debt service
    reserve fund, if any; and
        (14) quality assurance and antifraud measures.
(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
    (50 ILCS 50/25)
    Sec. 25. Assessment contracts Contracts with record owners
of property.
    (a) A After creation of a program and PACE area, a record
owner of property within the PACE area may apply to with the
governmental local unit of government or its program
administrator or program administrators for funding to finance
or refinance an energy project under the governmental unit's
program.
    (b) A governmental local unit of government may impose an
assessment under a property assessed clean energy program only
pursuant to the terms of a recorded assessment contract with
the record owner of the property to be assessed.
    (c) Before entering into an assessment contract with a
record owner under a program, the governmental unit or its
program administrator or program administrators local unit of
government shall verify that the applicable property is
entirely within the PACE area and receive evidence of all of
the following:
        (1) (blank); that the property is within the PACE area;
        (2) that there are no delinquent taxes, special
    assessments, or water or sewer charges on the property;
        (3) that there are no delinquent assessments on the
    property under a property assessed clean energy program;
        (4) whether there are any no involuntary liens on the
    property, including, but not limited to, construction or
    mechanics liens, lis pendens or judgments against the
    record owner, environmental proceedings, or eminent domain
    proceedings;
        (5) that no notices of default or other evidence of
    property-based debt delinquency have been recorded and not
    cured;
        (6) that the record owner is current on all mortgage
    debt on the property, the record owner has not filed for
    bankruptcy in the last 2 years, and the property is not an
    asset in to a current bankruptcy proceeding; .
        (7) that all work requiring a license under any
    applicable law to acquire, construct, install, or modify an
    energy project make a qualifying improvement shall be
    performed by a licensed registered contractor that has
    agreed to adhere to a set of terms and conditions through a
    process established by the governmental local unit or its
    program administrator or program administrators; of
    government.
        (8) that the contractor or contractors to be used have
    signed a written acknowledgement that the governmental
    unit or its program administrator or program
    administrators local unit of government will not authorize
    final payment to the contractor or contractors until the
    governmental local unit of government has received written
    confirmation from the record owner that the energy project
    improvement was properly acquired, constructed, installed,
    or modified and is operating as intended; provided,
    however, that the contractor or contractors retain retains
    all legal rights and remedies in the event there is a
    disagreement with the record owner;
        (9) that the aggregate amount financed or refinanced
    under one or more amount of the assessment contracts does
    not exceed 25% in relation to the greater of any of the
    following:
            (A) the value of the property as determined by the
        office of the county assessor; or
            (B) the value of the property as determined by an
        appraisal conducted by a licensed appraiser the
        assessed value of the property or the appraised value
        of the property, as determined by a licensed appraiser,
        does not exceed 25%; and
        (10) a requirement that an evaluation assessment of the
    existing water or energy use and a modeling of expected
    monetary savings have been conducted for any proposed
    energy efficiency improvement, renewable energy
    improvement, or water use improvement, unless the water use
    improvement is undertaken to improve water quality
    project.
    (d) Before At least 30 days before entering into an
assessment contract with the governmental local unit of
government, the record owner shall provide to the mortgage
holders of or loan servicers of any existing mortgages
encumbering or otherwise secured by the property a notice of
the record owner's intent to enter into an assessment contract
with the governmental local unit of government, together with
the maximum principal amount to be financed or refinanced and
the maximum annual assessment necessary to repay that amount,
along with an additional a request that the mortgage holders or
loan servicers of any existing mortgages consent to the record
owner subjecting the property to the program. The governmental
unit shall be provided with a A verified copy or other proof of
those notices and the written consent of the existing mortgage
holder for the record owner to enter into the assessment
contract which acknowledges and acknowledging that (i) the
existing mortgage or mortgages for which the consent was
received will be subordinate to the financing and assessment
contract and the lien created thereby and (ii) the governmental
agreement and that the local unit of government or its
permitted assignee can foreclose the property if the
assessments are assessment is not paid shall be provided to the
local unit of government.
    (e) (Blank). A provision in any agreement between a local
unit of government and a public or private power or energy
provider or other utility provider is not enforceable to limit
or prohibit any local unit of government from exercising its
authority under this Section.
    (f) If the The record owner has signed a certification that
the governmental local unit of government has complied with the
provisions of this Section, then this which shall be conclusive
evidence as to compliance with these provisions, but shall not
relieve any contractor, or the governmental local unit of
government, from any potential liability.
    (g) (Blank). This Section is additional and supplemental to
county and municipal home rule authority and not in derogation
of such authority or limitation upon such authority.
    (h) The imposition of any assessment pursuant to this Act
shall be exempt from any other statutory procedures or
requirements that condition the imposition of special
assessments or other taxes against a property, except as
specifically set forth in this Act.
(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
    (50 ILCS 50/30)
    Sec. 30. Assessments constitute a lien; billing and
collecting.
    (a) An assessment contract shall be recorded with the
county in which the PACE area is located. An assessment imposed
under a property assessed clean energy program pursuant to an
assessment contract, including any interest on the assessment
and any penalty, shall, upon recording of the assessment
contract in the county in which the PACE area is located,
constitute a lien against the property on which the assessment
is imposed until the assessment, including any interest or
penalty, is paid in full. The lien of the assessment contract
shall run with the property until the assessment is paid in
full and a satisfaction or release for the same has been
recorded by the governmental unit or its program administrator
or program administrators with the local unit of government and
shall have the same lien priority and status as other property
tax and special assessment liens as provided in the Property
Tax Code. The governmental local unit of government (or any
permitted assignee) shall have all rights and remedies in the
case of default or delinquency in the payment of an assessment
as it does with respect to delinquent property taxes and other
delinquent special assessments as set forth in Article 9 of the
Illinois Municipal Code, including the lien, sale, and
foreclosure remedies described in that Article. When the
assessment, including any interest and penalty, is paid in
full, the lien shall be removed and released from the property.
    (a-5) The assessment shall be imposed by the governmental
local unit of government against each lot, block, tract, track
and parcel of land set forth in within the assessment contract
PACE area to be assessed in accordance with an assessment roll
setting forth: (i) a description of the method of spreading the
assessment; (ii) a list of lots, blocks, tracts and parcels of
land in the PACE area; and (iii) the amount assessed on each
parcel. The assessment roll shall be filed with the county
clerk of the county in which the PACE area is located for use
in establishing the lien and collecting the assessment.
    (b) (Blank). Installments of assessments due under a
program may be included in each tax bill issued under the
Property Tax Code and may be collected at the same time and in
the same manner as taxes collected under the Property Tax Code.
Alternatively, installments may be billed and collected as
provided in a special assessment ordinance of general
applicability adopted by the local unit of government pursuant
to State law or local charter. In no event will partial payment
of an assessment be allowed.
    (b-5) Assessments created under this Act may be billed and
collected as follows:
        (1) A county which has established a program may
    include assessments in the regular property tax bills of
    the county. The county collector of the county in which a
    PACE area is located may bill and collect assessments with
    the regular property tax bills of the county if requested
    by a municipality within its jurisdiction; no municipality
    is required to make such a request of its county collector.
    If the county collector agrees to bill and collect
    assessments with the regular property tax bills of the
    county, then the applicable assessment contract shall be
    filed with the county collector and the annual amount due
    as set forth in an assessment contract shall become due in
    installments at the times property taxes shall become due
    in accordance with each regular property tax bill payable
    during the year in which such assessment comes due;
        (2) If the county collector does not agree to bill and
    collect assessments with the regular property tax bills of
    the county or the governmental unit in which the PACE area
    is located declines to request the county collector to do
    so, then the governmental unit shall bill and collect the
    assessments, either directly or as permitted in paragraph
    (3) of this subsection, and the annual amount due as set
    forth in an assessment contract shall become due in
    installments on or about the times property taxes would
    otherwise become due in accordance with each regular
    property tax bill payable during the year in which such
    assessment comes due; or
        (3) If a governmental unit is billing and collecting
    assessments pursuant to paragraph (2) of this subsection,
    assessment installments may be billed and collected by the
    governmental unit's program administrator or program
    administrators or another third party.
    The assessment installments for assessments billed as
provided for under any paragraph of this subsection shall be
payable at the times and in the manner as set forth in the
applicable bill.
    (c) If a governmental unit, a program administrator, or
another third party is billing and collecting assessments
pursuant to subsection (b-5), and the applicable assessment
becomes delinquent during any year, the applicable collector
shall, on or before the date in such year required by the
county in which the PACE area is located, make a report in
writing to the general office of the county in which the
applicable property subject to the assessment is situated and
authorized by the general revenue laws of this State to apply
for judgment and sell lands for taxes due the county and the
State, of the assessments or installments thereof the
applicable collector has billed for and not received as
required under the applicable bill, including any interest or
penalties that may be due as set forth in the applicable
assessment contract. This report shall be certified by the
applicable collector and shall include statements that (i) the
report contains true and correct list of delinquent assessments
that the collector has not received as required by the
applicable bill and (ii) an itemization of the amount of the
delinquent assessment, including interest and penalties, if
applicable. The report of the applicable collector, when so
made, shall be prima facie evidence that all requirements of
the law in relation to making the report have been complied
with and that the assessments or the matured installments
thereof, and the interest thereon, and the interest accrued on
installments not yet matured, mentioned in the report, are due
and unpaid. Upon proper filing of such report, at the direction
of the governmental unit or its permitted assignee, the county
collector shall enforce the collection of the assessments in
the manner provided by law.
    (d) Payment received by mail and postmarked on or before
the required due date is not delinquent. From and after the due
date of any installment of an assessment, an additional rate of
interest of 1 1/2% per month may be imposed with respect to the
delinquent amount of such installment, which shall be payable
to the applicable governmental unit or other permitted assignee
as set forth in the applicable bill.
(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19;
revised 9-28-18.)
 
    (50 ILCS 50/35)
    Sec. 35. Issuance of PACE bonds Bonds.
    (a) Except as provided for in subsection (k), a
governmental unit shall A local unit of government may issue
PACE bonds under this Act or the Special Assessment
Supplemental Bond and Procedures Act, or the Authority shall
may issue PACE bonds in accordance with this Act and pursuant
to under subsection (d) of Section 825-65 of the Illinois
Finance Authority Act upon assignment of the assessment
contracts securing such bonds by the local unit of government
to the Authority, in either case to finance or refinance energy
projects under a property assessed clean energy program.
Interim financing prior to the issuance of bonds authorized by
this Section may be provided only by a warehouse fund, except
that warehouse funds established by a warehouse lender may only
hold assessment contracts for 36 months or less.
    (b) PACE bonds issued under this Act or in accordance with
this Act and pursuant to subsection (d) of Section 825-65 of
the Illinois Finance Authority Act: Bonds issued under
subsection (a) shall
        (1) shall not be general obligations of the
    governmental local unit of government or the Authority, as
    applicable, but shall be secured by the following as
    provided by the governing body in the resolution or
    ordinance approving the bonds:
            (A) (1) payments under one or more assessment
        contracts of assessments on benefited property or
        properties within the PACE area or PACE areas
        specified; and
            (B) if applicable, municipal bond insurance,
        letters of credit, or public or private guarantees or
        sureties; and
            (C) (2) if applicable, revenue sources or reserves
        established by the governmental local unit of
        government or the Authority from bond proceeds or other
        lawfully available funds; .
        (2) may be secured on a parity basis with PACE bonds of
    another series or subseries issued by the governmental unit
    or the Authority pursuant to the terms of a master
    indenture entered into as authorized by an ordinance or
    resolution adopted by the governing body or the Authority,
    as applicable;
        (3) may bear interest at any rate or rates not to
    exceed such rate or rates as the governing body or the
    Authority shall determine by ordinance or resolution;
        (4) may pay interest upon the date or dates described
    in such PACE bonds;
        (5) shall have a maturity no more than 40 years from
    the date of issuance;
        (6) may be subject to redemption with or without
    premium upon such terms and provisions as may be provided
    under the terms of a master indenture entered into as
    authorized by an ordinance or resolution adopted by the
    governing body or the Authority, as applicable, including,
    without limitation, terms as to the order of redemption
    (numerical, pro rata, by series, subseries, or otherwise)
    and as to the timing thereof;
        (7) shall be negotiable instruments under Illinois law
    and be subject to the Registered Bond Act; and
        (8) may be payable either serially or at term, or any
    combination thereof, in such order of preference,
    priority, lien position, or rank (including, without
    limitation, numerical, pro rata, by series, subseries, or
    otherwise) as the governing body or Authority may provide.
    (c) A pledge of assessments, funds, or contractual rights
made by a governmental unit or the Authority governing body in
connection with the issuance of PACE bonds by a local unit of
government under this Act or in accordance with this Act and
pursuant to Section 825-65 of the Illinois Finance Authority
Act constitutes a statutory lien on the assessments, funds, or
contractual rights so pledged in favor of the person or persons
to whom the pledge is given, without further action taken by a
governmental unit or the Authority, as applicable by the
governing body. The statutory lien is valid and binding against
all other persons, with or without notice.
    (d) (Blank). Bonds of one series issued under this Act may
be secured on a parity with bonds of another series issued by
the local unit of government or the Authority pursuant to the
terms of a master indenture or master resolution entered into
or adopted by the governing body of the local unit of
government or the Authority.
    (d-5) The State pledges to and agrees with the holders of
any PACE bonds issued under this Act or in accordance with the
Act and pursuant to Section 825-65 of the Illinois Finance
Authority Act that the State will not limit or alter the rights
and powers vested in governmental units by this Act or in the
Authority in accordance with this Act and pursuant to Section
825-65 of the Illinois Finance Authority Act so as to impair
the terms of any contract made by a governmental unit or by the
Authority with those bondholders or in any way to impair the
rights or remedies of those bondholders until the PACE bonds,
together with the interest thereon, and all costs and expenses
in connection with any actions or proceedings by or on behalf
of those bondholders are fully met and discharged.
    (e) (Blank). Bonds issued under this Act are subject to the
Bond Authorization Act and the Registered Bond Act.
    (f) PACE bonds Bonds issued under this Act or in accordance
with this Act and pursuant to Section 825-65 of the Illinois
Finance Authority Act further essential public and
governmental purposes, including, but not limited to, reduced
energy costs and , reduced greenhouse gas emissions, enhanced
water quality and conservation, economic stimulation and
development, improved property resiliency and valuation, and
increased employment.
    (g) A capital provider program administrator can assign its
rights to purchase PACE the bonds issued by the governmental
unit or the Authority to a designated transferee to a third
party.
    (h) A law firm shall be retained to give a written bond
opinion in connection with any PACE bond issued under this Act
or in accordance with this Act and pursuant to Section 825-65
of the Illinois Finance Authority Act in form and substance as
requested by the issuer of the PACE bonds or the capital
provider.
    (i) PACE bonds Bonds issued by the Authority in accordance
with under this Act and pursuant to subsection (d) of Section
825-65 of the Illinois Finance Authority Act shall not be
entitled to the benefits of Section 825-75 of the Illinois
Finance Authority Act.
    (j) PACE bonds issued by a governmental unit may otherwise
have any attributes permitted to bonds under the Local
Government Debt Reform Act, as the governing body may provide.
    (k) Interim financing prior to the issuance of PACE bonds
authorized by this Section may be provided only by a warehouse
fund, except that warehouse funds established by capital
providers shall only interim finance energy projects secured by
one or more assessment contracts for 36 months or less from the
date of recording of the applicable assessment contract.
(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
    (50 ILCS 50/42 new)
    Sec. 42. Supplemental powers.
    (a) The provisions of this Act are intended to be
supplemental and in addition to all other powers or authorities
granted to any governmental unit, shall be construed liberally,
and shall not be construed as a limitation of any power or
authority otherwise granted.
    (b) A governmental unit may use the provisions of this Act
by referencing this Act in the resolution or ordinance
described in Section 15.
 
    (50 ILCS 50/45 new)
    Sec. 45. Recital. PACE bonds that are issued under this Act
or in accordance with this Act and pursuant to Section 825-65
of the Illinois Finance Authority Act may contain a recital to
that effect and any such recital shall be conclusive as against
the issuer thereof and any other person as to the validity of
the PACE bonds and as to their compliance with the provisions
of this Act and, as applicable, the provisions of Section
825-65 of the Illinois Finance Authority Act.
 
    (50 ILCS 50/50 new)
    Sec. 50. Validation. All actions taken by the Authority or
any governmental unit under this Act prior to the effective
date of this amendatory Act of the 101st General Assembly,
including, without limitation, creation of a property assessed
clean energy program under Section 10 and Section 15,
preparation and approval of a report on the proposed program
under Section 20, entering into assessment contracts under
Section 25, and issuance of bonds, notes, and other evidences
of indebtedness under Section 35 shall be unaffected by the
enactment of this amendatory Act of the 101st General Assembly
and shall continue to be legal, valid, and in full force and
effect, notwithstanding any lack of compliance with the
requirements of this amendatory Act of the 101st General
Assembly.
 
    (50 ILCS 50/40 rep.)
    Section 10. The Property Assessed Clean Energy Act is
amended by repealing Section 40.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.