HB2872 97TH GENERAL ASSEMBLY

LRB097 02751 RLJ 42773 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2872

Introduced 2/22/2011, by Rep. Jim Watson

SYNOPSIS AS INTRODUCED:

New Act
735 ILCS 30/15-5-46 new

Creates the Illinois Rural Water Authority Act. Provides that the Board of the Illinois Rural Water Authority shall consist of 9 members appointed by the Governor. Sets forth the terms of the Board members. Sets forth the powers and duties of the Authority. Provides that the Authority may issue revenue bonds to develop, construct, acquire, or improve facilities for the development, transportation, and distribution of water and sewage. Provides that the Authority has the power of eminent domain and the power to acquire property. Amends the Eminent Domain Act to make conforming changes.

FISCAL NOTE ACT MAY APPLY

STATE DEBT IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

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

Section 1. Short title. This Act may be cited as the Illinois Rural Water Authority Act.

Section 5. Findings and purpose. The General Assembly finds that many units of local government, non-profit corporations, public trusts, cooperative associations, and other similar organizations have a common interest in the economic development of the State and in the protection of the health and welfare of the citizens of the State through the development, transportation, and distribution of water in rural areas of the State and through the provision of adequate sewage treatment and disposal facilities in rural areas of the State.

The purpose of this Act is to promote the economic development of the State and to provide for the protection of the health and welfare of citizens of the State through the development, transportation, and distribution of water in rural areas of the State and through the provision of adequate sewage treatment and disposal facilities in rural areas of the State.

Section 10. Definitions. As used in this Act, the following terms shall have the following meanings, unless a different meaning clearly appears from the context:

"Authority" means the Illinois Rural Water Authority created by this Act.

"Board" means the Illinois Rural Water Authority Board of Directors.

"Costs incurred in connection with the development, construction, acquisition, or improvement of a project" means the following: the cost of purchase and construction of all lands and improvements in connection therewith and equipment and other property, rights, easements, and franchises which are deemed necessary for such construction; financing charges; interest costs with respect to bonds, notes, and other evidences of indebtedness of the Authority before and during construction and for a period of 6 months thereafter; engineering and legal expenses; the costs of plans, specifications, surveys, and estimates of costs and other expenses necessary or incident to determining the feasibility or practicability of any project; and any other expenses as may be necessary or incident to the financing, insuring, acquisition, and construction of a specific project and the placing of the same in operation.

"Lease agreement" shall mean an agreement whereby a project acquired by the Authority by purchase, gift, or lease is leased to any member upon terms providing for lease rental payments at least sufficient to pay when due all principal of and interest and premium, if any, on any bonds, notes, or other evidences of indebtedness of the Authority issued with respect to such project, providing for the maintenance, insurance, and operation of the project on terms satisfactory to the Authority and providing for disposition of the project upon termination of the lease term, including purchase options or abandonment of the premises, with any other terms as may be deemed desirable by the Authority. For the purposes of this definition, "member" means any unit of local government, non-profit corporation, public trust, cooperative association, or similar organization.

"Loan agreement" means any agreement pursuant to which the Authority agrees to loan the proceeds of its bonds, notes, or other evidences of indebtedness issued with respect to a project to any member upon terms providing for loan repayment installments at least sufficient to pay when due all principal of and interest and premium, if any, on any bonds, notes, or other evidences of indebtedness of the Authority issued with respect to the project, providing for maintenance, insurance, and operation of the project on terms satisfactory to the Authority and providing for other matters as may be deemed advisable by the Authority. For the purposes of this definition, "member" means any unit of local government, non-profit corporation, public trust, cooperative association, or similar organization.

"Local government project" means a project or other undertaking that is authorized or required by law to be acquired, constructed, reconstructed, equipped, improved, rehabilitated, replaced, maintained, or otherwise undertaken in any manner by a unit of local government.

"Local government security" means a bond, note, or other evidence of indebtedness that a unit of local government is legally authorized to issue for the purpose of financing a project or to issue for any other lawful public purpose under any provision of the Constitution or laws of the State, whether the obligation is payable from taxes or revenues, rates, charges, assessments, appropriations, grants, or any other lawful source or combination thereof, and specifically includes, without limitation, obligations under any lease or lease purchase agreement lawfully entered into by the unit of local government for the acquisition or use of facilities or equipment.

"Person" means any unit of local government, natural person, firm, partnership, corporation, both domestic and foreign, company, association, or joint stock association and includes any trustee, receiver, assignee, or personal representative thereof.

"Project" means facilities for the development, transportation, and distribution of water and for the transportation, treatment, and disposal of sewage, including improvements or extensions thereof. Any project may include land acquisition, site improvements, sewage treatment and disposal facilities, water lines, pipes, pumps, meter stations, water towers, storage tanks, or any other appurtenances, as applicable.

"Revenue bond" means any bond issued by the Authority the principal and interest of which is payable solely from revenues or income derived from any project or activity of the Authority.

"Rural community or system" means any unit of local government with a population of less than 10,000 or any non-profit corporation, public trust, cooperative association, or similar organization that represents or serves one or more areas each with a population of less than 10,000.

"State" means the State of Illinois.

"Unit of local government" means (i) a unit of local government, as defined in Section 1 of Article VII of the Illinois Constitution and (ii) a local public entity, as that term is defined in Section 1-206 of the Local Governmental and Governmental Employees Tort Immunity Act.

Section 15. Illinois Rural Water Authority.

(a) There is hereby created a political subdivision, body politic, and municipal corporation named the Illinois Rural Water Authority. The territory of the Authority is coterminous with the boundaries of the State. The territory of the Authority shall be divided into 8 districts. Each district is composed of certain counties, and any navigable waters and air space located therein, described as follows:

District 1 consists of the counties of Bureau, Carroll, Henry, JoDaviess, Lee, Ogle, Rock Island, Stephenson, Whiteside, and Winnebago.

District 2 consists of the counties of Boone, Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will.

District 3 consists of the counties of Adams, Fulton, Hancock, Henderson, Knox, Mason, McDonough, Mercer, Peoria, Schuyler, Stark, Tazewell, and Warren.

District 4 consists of the counties of Iroquois, Kankakee, LaSalle, Livingston, Marshall, McLean, Putnam, and Woodford.

District 5 consists of the counties of Brown, Cass, Calhoun, Christian, DeWitt, Greene, Jersey, Logan, Macon, Macoupin, Menard, Montgomery, Morgan, Pike, Sangamon, and Scott.

District 6 consists of the counties of Champaign, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Ford, Jasper, Moultrie, Platt, Shelby, and Vermillion.

District 7 consists of the counties of Bond, Clay, Clinton, Edwards, Effingham, Fayette, Jefferson, Lawrence, Madison, Marion, Monroe, Perry, Randolph, Richland, St. Clair, Wabash, Washington, and Wayne.

District 8 consists of the counties of Alexander, Franklin, Gallatin, Hamilton, Hardin, Jackson, Johnson, Massac, Pope, Pulaski, Saline, Union, White, and Williamson.

(b) The governing and administrative powers of the Authority shall be vested in a board of directors consisting of 9 members. The Governor shall appoint one director from each of the districts described in subsection (a) and one additional director from the State at-large. The directors must be from a rural community or system. Of the initial directors, 5 directors shall serve for a term of 3 years, and 4 directors shall serve for a term of 6 years, as determined by lot. Thereafter, all terms shall be for 6 years. Vacancies shall be filled for the remainder of the term in accordance with the initial appointment.

(c) The Governor may remove any director in case of incompetency, neglect of duty, or malfeasance in office.

(d) Directors shall not be entitled to compensation for their services as Board members but may be reimbursed for all necessary expenses incurred in connection with the performance of their duties as directors.

(e) The Board shall appoint from its members a chairperson, secretary, and treasurer.

(f) The Board shall appoint an executive director who shall have a background in the development of sewage treatment and disposal facilities and water facilities. The executive director shall hold office at the discretion of the Board. The executive director shall be the chief administrative and operational officer of the Authority, shall direct and supervise the Authority's administrative affairs and general management, shall perform any other duties as may be prescribed from time to time by the Board, and shall receive compensation as fixed by the Board. The executive director shall attend all meetings of the Authority. However, no action of the Authority shall be invalid on account of the absence of the executive director from a meeting. The Board may engage the services of any other agents and employees, including attorneys, appraisers, engineers, accountants, credit analysts, and other consultants, as the Board may deem advisable and may prescribe their duties and fix their compensation.

Section 20. Quorum. All official acts of the Authority require the approval of at least a majority of a quorum of the Board. A majority of the Board shall constitute a quorum for the transaction of business at any meeting of the Board. It is the duty of the Authority to promote the economic development of the State and to protect the health and welfare of the citizens of the State through the development, transportation, and distribution of water in rural areas of the State and through the provision of adequate sewage treatment and disposal facilities in rural areas of the State. The Authority shall use the powers conferred upon it under this Act to assist in the development, construction, and acquisition of those water and sewage projects.

Section 25. Powers.

(a) The Authority possesses all the powers of a body corporate necessary and convenient to accomplish the purposes of this Act, including, without any intended limitation upon the general powers conferred by this Act, the following:

(1) to enter into loans, contracts, agreements, and mortgages in any matter connected with any of its corporate purposes and to invest its funds;

(2) to sue and be sued;

(3) to employ agents and employees necessary to carry out its purposes;

(4) to have and use a common seal and to alter the same at its discretion;

(5) to adopt all needful ordinances, resolutions, bylaws, rules, and regulations for the conduct of its business and affairs and for the management and use of the projects developed, constructed, acquired, and improved in furtherance of its purposes;

(6) to designate the fiscal year for the Authority;

(7) to accept and expend appropriations;

(8) to have and exercise all powers and be subject to all duties usually incident to boards of directors of corporations;

(9) to acquire, own, lease, sell, or otherwise dispose of interests in and to real property and improvements situated thereon and in personal property necessary to fulfill the purposes of the Authority; and

(10) to engage in any activity or operation which is incidental to and in furtherance of efficient operation to accomplish the Authority's purposes.

(b) If any of the powers set forth in this Act are exercised within the jurisdictional limits of any municipality, all ordinances of the municipality shall remain in full force and effect and shall control.

Section 30. Revenue bonds. The Authority shall have the continuing power to issue bonds, notes, or other evidences of indebtedness for the purpose of developing, constructing, acquiring, or improving projects. With respect to any local government project, the Authority is authorized to purchase from time to time pursuant to negotiated sale or to otherwise acquire from time to time any local government security upon terms and conditions as the Authority may prescribe in connection therewith. For the purpose of evidencing the obligations of the Authority to repay any money borrowed for any project, the Authority may, pursuant to resolution, from time to time issue and dispose of its interest bearing revenue bonds, notes, or other evidences of indebtedness and may also from time to time issue and dispose of those bonds, notes, or other evidences of indebtedness to refund, at maturity, at a redemption date or in advance of either, any bonds, notes, or other evidences of indebtedness pursuant to redemption provisions or at any time before maturity. All bonds, notes, or other evidences of indebtedness shall be payable solely and only from the revenues or income to be derived from loans made with respect to projects, from the leasing or sale of the projects, or from any other funds available to the Authority for those purposes. The bonds, notes, or other evidences of indebtedness may bear any date or dates, may mature at any time or times not exceeding 40 years from their respective dates, may bear interest at any rate or rates payable annually, semiannually, quarterly, or monthly, may be in any form, may carry any registration privileges, may be executed in any manner, may be payable at any place or places, may be made subject to redemption in any manner and upon any terms, with or without premium as is stated on the face thereof, may be authenticated in any manner, and may contain any terms and covenants as may be provided by resolution of the Board.

The holder or holders of any bonds, notes, or other evidences of indebtedness issued by the Authority may bring suits at law or proceedings in equity to: (i) compel the performance and observance by any person or by the Authority or any of its agents or employees of any contract or covenant made with the holders of the bonds, notes, or other evidences of indebtedness; (ii) compel the person or the Authority and any of its agents or employees to perform any duties required to be performed for the benefit of the holders of the bonds, notes, or other evidences of indebtedness by the provision of the resolution authorizing their issuance; and (iii) enjoin the person or the Authority and any of its agents or employees from taking any action in conflict with the contract or covenant.

If the Authority fails to pay the principal of, premium, if any, or interest on any of its bonds as the same become due, a civil action to compel payment may be instituted in the appropriate circuit court by the holder or holders of the bonds on which the default of payment exists or by an indenture trustee acting on behalf of the holders. Delivery of a summons and a copy of the complaint to the chairperson of the Board shall constitute sufficient service to give the circuit court jurisdiction over the subject matter of the suit and jurisdiction over the Authority and its officers named as defendants for the purpose of compelling payment.

Notwithstanding the form and tenor of any bonds, notes, or other evidences of indebtedness and in the absence of any express recital on the face thereof that it is nonnegotiable, all bonds, notes, and other evidences of indebtedness shall be negotiable instruments. Pending the preparation and execution of any bonds, notes, or other evidences of indebtedness, temporary bonds, notes, or evidences of indebtedness may be issued as provided by resolution of the Board.

To secure the payment of any or all of such bonds, notes, or other evidences of indebtedness, the revenues to be received by the Authority from a lease agreement or loan agreement shall be pledged, and, for the purpose of setting forth the covenants and undertakings of the Authority in connection with the issuance thereof and the issuance of any additional bonds, notes, or other evidences of indebtedness payable from the revenues, income, or other funds to be derived from projects, the Authority may execute and deliver a mortgage or trust agreement. A remedy for any breach or default of the terms of any such mortgage or trust agreement by the Authority may be by mandamus proceedings in the appropriate circuit court to compel the performance and compliance therewith, but the trust agreement may prescribe by whom or on whose behalf an action may be instituted.

Bonds or notes shall be secured as provided in the authorizing resolution of the Board which may, notwithstanding any other provision of this Act, include in addition to any other security a specific pledge or assignment of and lien on or security interest in any or all revenues or money of the Authority from whatever source which may by law be used for debt service purposes and a specific pledge or assignment of and lien on or security interest in any funds or accounts established or provided for by resolution of the Board authorizing the issuance of the bonds or notes and, with respect to any local government project, may include without limitation a pledge of any local government securities, including any payments thereon.

The State pledges to and agrees with the holders of the bonds and notes of the Authority issued pursuant to this Section that the State will not limit or alter the rights and powers vested in the Authority by this Act so as to impair the terms of any contract made by the Authority with the holders or in any way impair the rights and remedies of those holders until the bonds and notes, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the holders, are fully met and discharged. The Authority is authorized to include this pledge and agreement of the State in any contract with the holders of bonds or notes issued under this Section.

Section 35. Issuance and sale of local government securities. Any unit of local government which is authorized to issue, sell, and deliver its local government securities under any provision of the Constitution or laws of the State may issue, sell, and deliver local government securities to the Authority as provided by this Act, provided that and notwithstanding any other provision of law to the contrary, any unit of local government may issue and sell any local government security at any interest rate, which rate or rates may be established by an index or formula which may be implemented by persons appointed or retained therefor, payable at any time or times and at any price or prices to which the unit of local government and the Authority may agree. Any unit of local government may pay any amount charged by the Authority. Any unit of local government may pay out of the proceeds of its local government securities or out of any other moneys or funds available to it for such purposes any costs, fees, interest deemed necessary, premiums, or revenues incurred or required for any financing or refinancing, including without limitation any fees charged by the Authority and its share, as determined by the Authority, of any costs, fees, interest deemed necessary, premiums, or revenues incurred or required pursuant to this Act. All local government securities purchased by the Authority pursuant to this Act shall upon delivery to the Authority be accompanied by an approving opinion of bond counsel as to the validity of those securities. The Authority shall have discretion to purchase or otherwise acquire those local government securities as it shall deem to be in the best interest of its financing program for all units of local government taken as a whole.

Section 40. Pledge of local government securities.

(a) Any unit of local government that receives funds which are at any time in the custody of the State Treasurer, the State Comptroller, or the Department of Revenue may, by appropriate proceedings, pledge to the Authority or any entity acting on behalf of the Authority (including, without limitation, any trustee), any or all of those receipts to the extent that the receipts are necessary to provide revenues to pay the principal of, premium, if any, and interest on, and other fees related to, or to secure, any of the local government securities of the unit of local government which have been sold or delivered to the Authority or its designee or to pay lease rental payments to be made by the unit of local government to the extent that such lease rental payments secure the payment of the principal of, premium, if any, and interest on, and other fees related to, any local government securities which have been sold or delivered to the Authority or its designee. Any pledge of such receipts (or any portion thereof) shall constitute a first and prior lien thereon and shall be binding from the time the pledge is made.

(b) Any unit of local government may, by such proceedings, direct that all or any of the pledged receipts payable to the unit of local government be paid directly to the Authority or any other entity (including, without limitation, any trustee) for the purpose of paying the principal of, premium, if any, and interest on, and fees relating to, such local government securities or for the purpose of paying such lease rental payments to the extent necessary to pay the principal of, premium, if any, and interest on, and other fees related to, such local government securities secured by such lease rental payments. Upon receipt of a certified copy of the proceedings by the State Treasurer, the State Comptroller, and the Department of Revenue, the State Comptroller and State Treasurer shall pay to, or on behalf of, the Authority or any other entity (including, without limitation, any trustee) all or a portion of the pledged receipts from the Department of Revenue sufficient to pay the principal of and premium, if any, and interest on, and other fees related to, the local governmental securities for which the pledge was made or to pay such lease rental payments securing such local government securities for which the pledge was made. The proceedings shall constitute authorization for such a directive to the State Comptroller to cause orders to be drawn and to the State Treasurer to pay in accordance with such directive. To the extent that the Authority or its designee notifies the Department of Revenue that the unit of local government has previously paid to the Authority or its designee the amount of any principal, premium, interest, and fees payable from such pledged receipts, the State Comptroller shall cause orders to be drawn and the State Treasurer shall pay such pledged receipts to the unit of local government as if they were not pledged receipts. To the extent that such receipts are pledged and paid to the Authority or any other entity, any taxes which have been levied or fees or charges assessed pursuant to law on account of the issuance of such local government securities shall be paid to the unit of local government and may be used for the purposes which the pledged receipts would have been used.

(c) Any unit of local government may, by such proceedings, direct that the pledged receipts payable to the unit of local government be paid to the Authority or any other entity (including, without limitation, any trustee) upon a default in the payment of any principal of, premium, if any, or interest on, or fees relating to, any of the local government securities of the unit of local government which have been sold or delivered to the Authority or its designee or any of the local government securities which have been sold or delivered to the Authority or its designee and which are secured by such lease rental payments. If such local governmental security is in default as to the payment of principal thereof, premium, if any, or interest thereon, or fees relating thereto, to the extent that the State Treasurer, the State Comptroller, or the Department of Revenue shall be the custodian at any time of any other available funds or moneys pledged to the payment of such local government securities or such lease rental payments securing such local government securities pursuant to this Section and due or payable to such a unit of local government at any time subsequent to written notice to the State Comptroller and State Treasurer from the Authority or any entity acting on behalf of the Authority (including, without limitation, any trustee) to the effect that the unit of local government has not paid or is in default as to payment of the principal of, premium, if any, or interest on, or fees relating to, any local government security sold or delivered to the Authority or any other entity (including, without limitation, any trustee) or has not paid or is in default as to the payment of such lease rental payments securing the payment of the principal of, premiums, if any, or interest on, or other fees relating to, any local government security sold or delivered to the Authority or any other entity (including, without limitation, any trustee), the following shall apply:

(1) The State Comptroller and the State Treasurer shall withhold the payment of such funds or moneys from the unit of local government until the amount of the principal, premium, if any, interest, or fees then due and unpaid has been paid to the Authority or any other entity (including, without limitation, any trustee), or the State Comptroller and the State Treasurer have been advised that arrangements, satisfactory to the Authority or such entity, have been made for the payment of the principal, premium, if any, interest, and fees.

(2) Within 10 days after a demand for payment by the Authority or any other entity given to the unit of local government, the State Treasurer, and the State Comptroller, the State Treasurer shall pay such funds or moneys as are legally available therefor to the Authority or such entity for the payment of principal of, premium, if any, or interest on, or fees relating to, such local government securities. The Authority or any other entity may carry out this Section and exercise all the rights, remedies, and provisions provided or referred to in this Section.

(d) Upon the sale or delivery of any local government securities of the Authority or its designee, the local government which issued such local government securities shall be deemed to have agreed that upon its failure to pay interest or premium, if any, on, or principal of, or fees relating to, the local government securities sold or delivered to the Authority or any entity acting on behalf of the Authority (including, without limitation, any trustee) when payable, all statutory defenses to nonpayment are thereby waived. Upon a default in the payment of principal of or interest on any local government securities issued by a unit of local government and sold or delivered to the Authority or its designee, and upon demand on the unit of local government for payment, if the local government securities are payable from property taxes and funds are not legally available in the treasury of the unit of local government to make payment, an action in mandamus for the levy of a tax by the unit of local government to pay the principal of or interest on the local government securities shall lie, and the Authority or such entity shall be constituted a holder or owner of the local government securities as being in default. Upon the occurrence of any failure or default with respect to any local government securities issued by a unit of local government, the Authority or such entity may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the unit of local government.

Section 45. Bond issues for multiple projects. The Authority may issue a single bond issue pursuant to this Act for a group of projects. A bond issue for multiple projects as provided in this Section shall be subject to all requirements for a bond issue as established by this Act.

Section 50. Acquisition of property.

(a) The Authority may, but need not, acquire title to any project with respect to which it exercises its authority.

(b) The Authority has the power to acquire by purchase, lease, gift, or otherwise any property or rights therein from any person or persons, the State, any unit of local government, the government of the United States, any agency or instrumentality of the United States, or any other body politic useful for its purposes, whether improved for the purposes of any prospective project or unimproved. The Authority may also accept any donation of funds for its purposes from any of those sources. The Authority may acquire any real property, or rights therein, upon condemnation. The acquisition by eminent domain of such real property or any interest therein by the Authority shall be in the manner provided by the Eminent Domain Act, including Article 20.

The Authority shall not exercise any quick-take eminent domain powers granted by State law within the corporate limits of a municipality unless the governing authority of the municipality authorizes the Authority to do so. The Authority shall not exercise any quick-take eminent domain powers granted by State law within the unincorporated areas of a county unless the county board authorizes the Authority to do so.

(c) The Authority has the power to develop, construct, and improve, either under its own direction or through collaboration with any approved applicant, or to acquire through purchase or otherwise any project, using for that purpose the proceeds derived from its sale of revenue bonds, notes, or other evidences of indebtedness or governmental loans or grants and to hold title in the name of the Authority to those projects.

(d) The Authority has the power to enter into intergovernmental agreements with the State, the Illinois Finance Authority, the United States government, any agency or instrumentality of the United States, any unit of local government, or any other unit of government to the extent allowed by Section 10 of Article VII of the Illinois Constitution and the Intergovernmental Cooperation Act.

(e) The Authority has the power to share employees with other units of government, including agencies of the United States, agencies of the State, and agencies or personnel of any unit of local government.

(f) The Authority shall have the power to exercise powers and issue bonds as if it were a municipality so authorized in Divisions 12.1, 74, 74.1, 74.3, and 74.5 of Article 11 of the Illinois Municipal Code.

Section 55. Eminent domain. Notwithstanding any other provision of this Act, any power granted under this Act to acquire property by condemnation or eminent domain is subject to, and shall be exercised in accordance with, the Eminent Domain Act.

Section 60. Depositories. The Authority shall biennially designate a national or State bank or banks as depositories of its money. The depositories shall be designated only within the State and upon condition that bonds approved as to form and surety by the Authority and at least equal in amount to the maximum sum expected to be on deposit at any one time shall be first given by the depositories to the Authority, those bonds to be conditioned for the safe keeping and prompt repayment of the deposits. If any of the funds of the Authority shall be deposited by the treasurer in any such depository, then the treasurer and the sureties on his or her official bond shall, to that extent, be exempt from liability for the loss of any of the deposited funds by reason of the failure, bankruptcy, or any other act or default of the depository. However, the Authority may accept assignments of collateral by any depository of its funds to secure the deposits to the same extent and conditioned in the same manner as assignments of collateral are permitted by law to secure deposits of the funds of any unit of local government.

Section 65. Conflicts of interest.

(a) No member of the Authority or officer, agent, or employee of the Authority shall, in his or her own name or in the name of a nominee, be an officer or director of or hold an ownership interest of more than 7.5% in any person, association, trust, corporation, partnership, or other entity that is, in its own name or in the name of a nominee, a party to a contract or agreement upon which the member, officer, agent, or employee may be called upon to act or vote.

(b) With respect to any direct or any indirect interest, other than an interest prohibited in subsection (a), in a contract or agreement upon which the member, officer, agent, or employee may be called upon to act or vote, the member, officer, agent, or employee shall disclose that interest to the secretary of the Authority before the taking of final action by the Authority concerning that contract or agreement and shall also disclose the nature and extent of that interest and his or her acquisition of that interest, which disclosures shall be publicly acknowledged by the Authority and entered upon the minutes of the Authority. If a member of the Authority or an officer, agent, or employee of the Authority holds such an interest, then he or she shall refrain from any further official involvement in regard to the contract or agreement, from voting on any matter pertaining to the contract or agreement, and from communicating with other members of the Authority or its officers, agents, and employees concerning the contract or agreement. Notwithstanding any other provision of law, any contract or agreement entered into in conformity with this subsection shall not be void or invalid by reason of an interest described in this subsection, nor shall any person so disclosing the interest and refraining from further official involvement as provided in this subsection be guilty of an offense, be removed from office, or be subject to any other penalty on account of that interest.

(c) Any contract or agreement made in violation of subsection (a) or (b) is void and gives rise to no action against the Authority.

Section 70. Prohibition of taxing authority. The Authority shall have no right or authority to levy any tax or special assessment, to pledge the credit of the State or any other subdivision or municipal corporation thereof, or to incur any obligation enforceable upon any property, either within or without the territory of the Authority.

Section 75. Fees and charges. The Authority may collect fees and charges in connection with its loans, commitments, and servicing and provide technical assistance in connection with the development, transportation, and distribution of water and the provision of adequate sewage treatment and disposal facilities in rural areas of the State.

Section 85. The Eminent Domain Act is amended by adding Section 15-5-46 as follows:

(735 ILCS 30/15-5-46 new)

Sec. 15-5-46. Eminent domain powers in new Acts. The following provisions of law may include express grants of the power to acquire property by condemnation or eminent domain: Illinois Rural Water Authority Act; Illinois Rural Water Authority; for general purposes.