Illinois General Assembly - Full Text of HB3501
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Full Text of HB3501  101st General Assembly

HB3501sam004 101ST GENERAL ASSEMBLY

Sen. Melinda Bush

Filed: 5/17/2019

 

 


 

 


 
10100HB3501sam004LRB101 09037 AWJ 60825 a

1
AMENDMENT TO HOUSE BILL 3501

2    AMENDMENT NO. ______. Amend House Bill 3501, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Property Assessed Clean Energy Act is
6amended by changing Sections 5, 10, 15, 20, 25, 30, and 35 and
7by adding Sections 42, 45, and 50 as follows:
 
8    (50 ILCS 50/5)
9    Sec. 5. Definitions. As used in this Act:
10    "Alternative energy improvement" means any fixture,
11product, system, equipment, device, material, or interacting
12group thereof intended the installation or upgrade of
13electrical wiring, outlets, or charging stations to charge a
14motor vehicle that is fully or partially powered by
15electricity, including, but not limited to, electrical wiring,
16outlets, or charging stations.

 

 

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1    "Assessment" means a special assessment imposed by a
2governmental unit pursuant to an assessment contract.
3    "Assessment contract" means a voluntary written contract
4between the applicable governmental local unit of government
5(or a permitted assignee) and record owner governing the terms
6and conditions of financing and assessment under a program.
7    "Authority" means the Illinois Finance Authority.
8    "Capital provider" means any credit union, federally
9insured depository institution, insurance company, trust
10company, or other institution approved by a governmental unit
11or its program administrator or program administrators that
12finances or refinances an energy project by purchasing PACE
13bonds issued by the governmental unit or the Authority for that
14purpose. "Capital provider" also means any special purpose
15vehicle that is directly or indirectly wholly owned by one or
16more of the entities listed in this definition or any bond
17underwriter.
18    "PACE area" means an area within the jurisdictional
19boundaries of a local unit of government created by an
20ordinance or resolution of the local unit of government to
21provide financing for energy projects under a property assessed
22clean energy program. A local unit of government may create
23more than one PACE area under the program, and PACE areas may
24be separate, overlapping, or coterminous.
25    "Energy efficiency improvement" means any fixture,
26product, system, equipment, device, material, or interacting

 

 

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1group thereof devices, or materials intended to decrease energy
2consumption or enable promote a more efficient use of
3electricity, natural gas, propane, or other forms of energy on
4property, including, but not limited to, all of the following:
5        (1) insulation in walls, roofs, floors, foundations,
6    or heating and cooling distribution systems;
7        (2) energy efficient storm windows and doors,
8    multi-glazed windows and doors, heat-absorbing or
9    heat-reflective glazed and coated window and door systems,
10    and additional glazing, reductions in glass area, and other
11    window and door systems system modifications that reduce
12    energy consumption;
13        (3) automated energy or water control systems;
14        (4) high efficiency heating, ventilating, or
15    air-conditioning and distribution systems system
16    modifications or replacements;
17        (5) caulking, weather-stripping, and air sealing;
18        (6) replacement or modification of lighting fixtures
19    to reduce the energy use of the lighting system;
20        (7) energy controls or recovery systems;
21        (8) day lighting systems;
22        (8.1) any energy efficiency project, as defined in
23    Section 825-65 of the Illinois Finance Authority Act; and
24        (9) any other fixture, product, system, installation
25    or modification of equipment, device, or material intended
26    devices, or materials approved as a utility or other

 

 

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1    cost-savings measure as approved by the governmental unit
2    governing body.
3    "Energy project" means the acquisition, construction,
4installation, or modification of an alternative energy
5improvement, energy efficiency improvement, renewable energy
6improvement, resiliency improvement, or water use improvement,
7or the acquisition, installation, or improvement of a renewable
8energy system that is affixed to real a stabilized existing
9property (including new construction).
10    "Governing body" means the legislative body, council,
11board, commission, trustees, or any other body by whatever name
12it is known having charge of the corporate affairs of a
13governmental unit county board or board of county commissioners
14of a county, the city council of a city, or the board of
15trustees of a village.
16    "Governmental Local unit of government" means any a county
17or municipality , city, or village.
18    "PACE area" means an area within the jurisdictional
19boundaries of a governmental unit created by an ordinance or
20resolution of the governmental unit to provide financing for
21energy projects under a property assessed clean energy program.
22A governmental unit may create more than one PACE area under
23the program and PACE areas may be separate, overlapping, or
24coterminous.
25    "PACE bond" means any bond, note, or other evidence of
26indebtedness representing an obligation to pay money,

 

 

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1including refunding bonds, issued under or in accordance with
2Section 35.
3    "Permitted assignee" means (i) the Authority any body
4politic and corporate, (ii) any bond trustee, or (iii) any
5capital provider warehouse lender, or (iv) any other assignee
6of a governmental local unit of government designated by the
7governmental unit in an assessment contract.
8    "Person" means an individual, firm, partnership,
9association, corporation, limited liability company,
10unincorporated joint venture, trust, or any other type of
11entity that is recognized by law and has the title to or
12interest in property. "Person" does not include a local unit of
13government or a homeowner's or condominium association, but
14does include other governmental entities that are not local
15units of government.
16    "Program administrator" means a for-profit entity or a
17not-for-profit not-for profit entity that will administer a
18program on behalf of or at the discretion of the governmental
19unit local unit of government. It or its affiliates,
20consultants, or advisors shall have done business as a program
21administrator or capital provider for a minimum of 18 months
22and shall be responsible for arranging capital for the
23acquisition of bonds issued by the local unit of government or
24the Authority to finance energy projects.
25    "Property" means any privately-owned commercial,
26industrial, non-residential agricultural, or multi-family (of

 

 

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15 or more units) real property or any real property owned by a
2not-for-profit located within the governmental local unit of
3government, but does not include any real property owned by a
4governmental local unit of government or a homeowner's or
5condominium association.
6    "Property assessed clean energy program" or "program"
7means the program of a governmental unit to provide financing
8or refinancing for energy projects within PACE areas it has
9created under Section 10 and Section 15 a program as described
10in Section 10.
11    "Record owner" means the titleholder or person who is the
12titleholder or owner of the beneficial interest in real
13property.
14    "Renewable energy improvement" means any fixture, product,
15system, equipment, device, material, or interacting group
16thereof on the property of the record owner that uses one or
17more renewable energy resources to generate electricity,
18including any renewable energy project, as defined in Section
19825-65 of the Illinois Finance Authority Act.
20    "Renewable energy resource" includes energy and its
21associated renewable energy credit or renewable energy credits
22from wind energy, solar thermal energy, geothermal energy,
23photovoltaic cells and panels, biodiesel, anaerobic digestion,
24and hydropower that does not involve new construction or
25significant expansion of hydropower dams. For purposes of this
26Act, landfill gas produced in the State is considered a

 

 

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1renewable energy resource. The term "renewable energy
2resources" does not include the incineration or burning of any
3solid material.
4    "Renewable energy system" means a fixture, product,
5device, or interacting group of fixtures, products, or devices
6on the customer's side of the meter that use one or more
7renewable energy resources to generate electricity, and
8specifically includes any renewable energy project, as defined
9in Section 825-65 of the Illinois Finance Authority Act.
10    "Resiliency improvement" means any fixture, product,
11system, equipment, device, material, or interacting group
12thereof intended to increase resilience or improve the
13durability of infrastructure, including but not limited to,
14seismic retrofits, flood mitigation, fire suppression, wind
15resistance, energy storage, microgrids, and backup power
16generation.
17    "Warehouse fund" means any fund or account established by a
18governmental unit, the Authority, or a capital provider local
19unit of government, body politic and corporate, or warehouse
20lender.
21    "Warehouse lender" means any financial institution
22participating in a PACE area that finances an energy project
23from lawfully available funds in anticipation of issuing bonds
24as described in Section 35.
25    "Water use improvement" means any resiliency improvement,
26fixture, product, system, equipment, device, material, or

 

 

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1interacting group thereof intended to conserve for or serving
2any property that has the effect of conserving water resources
3or improve water quality on property, including, but not
4limited to, all of the following: through improved
5        (1) water management or efficiency systems; .
6        (2) water recycling;
7        (3) capturing, reusing, managing, and treating
8    stormwater;
9        (4) bioretention, trees, green roofs, porous
10    pavements, or cisterns for maintaining or restoring
11    natural hydrology;
12        (5) replacing or otherwise abating or mitigating the
13    use of lead pipes in the supply of water; and
14        (6) any other resiliency improvement, fixture,
15    product, system, equipment, device, or material intended
16    as a utility or other cost-savings measure as approved by
17    the governmental unit.
18(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19;
19revised 9-28-18.)
 
20    (50 ILCS 50/10)
21    Sec. 10. Property assessed clean energy program; creation.
22    (a) Pursuant to the procedures provided in Section 15, a
23governmental a local unit of government may establish a
24property assessed clean energy program and, from time to time,
25create a PACE area or PACE areas under the program.

 

 

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1    (b) Under a program, the governmental local unit of
2government may enter into an assessment contract with the
3record owner of property within a PACE area to finance or
4refinance one or more energy projects on the property. The
5assessment contract shall provide for the repayment of all or a
6portion of the cost of an energy project through assessments
7upon the property benefited. The amount of the financing or
8refinancing may include any and all of the following: the cost
9of materials and labor necessary for acquisition,
10construction, installation, or modification of the energy
11project, permit fees, inspection fees, application and
12administrative fees, financing fees, reserves, capitalized
13interest, costs of billing the assessment bank fees, and all
14other fees, costs, and expenses that may be incurred by the
15record owner pursuant to the acquisition, construction,
16installation, or modification of the energy project, and the
17costs of issuance of PACE bonds on a specific or pro rata
18basis, as determined by the governmental local unit of
19government and may also include a prepayment premium.
20    (b-5) A governmental local unit of government may sell or
21assign, for consideration, any and all assessment contracts;
22the permitted assignee of the assessment contract shall have
23and possess the delegable same powers and rights at law or in
24equity as the applicable governmental local unit of government
25and its tax collector would have if the assessment contract had
26not been assigned with regard to (i) the precedence and

 

 

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1priority of liens evidenced by the assessment contract, (ii)
2the accrual of interest, and (iii) the fees and expenses of
3collection. The permitted assignee shall have the right same
4rights to enforce such liens pursuant to subsection (a) of
5Section 30 as any private party holding a lien on real
6property, including, but not limited to, foreclosure. Costs and
7reasonable attorney's fees incurred by the permitted assignee
8as a result of any foreclosure action or other legal proceeding
9brought pursuant to this Act Section and directly related to
10the proceeding shall be assessed in any such proceeding against
11each record owner subject to the proceedings. A governmental
12unit or the Authority may sell or assign assessment contracts
13without competitive bidding or the solicitation of requests for
14proposals or requests for qualifications Such costs and fees
15may be collected by the assignee at any time after demand for
16payment has been made by the permitted assignee.
17    (c) A program shall may be administered by either one or
18more than one program administrators or the governmental local
19unit, as determined by the governing body of government.
20(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
21    (50 ILCS 50/15)
22    Sec. 15. Program established.
23    (a) To establish a property assessed clean energy program,
24the governing body of a local unit of government shall adopt a
25resolution or ordinance that includes all of the following:

 

 

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1        (1) a finding that the financing or refinancing of
2    energy projects is a valid public purpose;
3        (2) a statement of intent to facilitate access to
4    capital (which may be from one or more program
5    administrators or as otherwise permitted by this Act) to
6    provide funds for energy projects, which will be repaid by
7    assessments on the property benefited with the agreement of
8    the record owners;
9        (3) a description of the proposed arrangements for
10    financing the program through the issuance of PACE bonds
11    under or in accordance with Section 35, which PACE bonds
12    may be purchased by one or more capital providers , which
13    may be through one or more program administrators;
14        (4) the types of energy projects that may be financed
15    or refinanced;
16        (5) a description of the territory within the PACE
17    area;
18        (6) a transcript of public comments if any
19    discretionary public hearing reference to a report on the
20    proposed program was previously held by the governmental
21    unit prior to the consideration of the resolution or
22    ordinance establishing the program; and as described in
23    Section 20;
24        (7) (blank); the time and place for a public hearing to
25    be held by the local unit of government if required for the
26    adoption of the proposed program by resolution or

 

 

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1    ordinance;
2        (8) the report on the proposed program as described in
3    matters required by Section 20 to be included in the
4    report; for this purpose, the resolution or ordinance may
5    incorporate the report or an amended version thereof by
6    reference; and shall be available for public inspection.
7        (9) (blank). a description of which aspects of the
8    program may be amended without a new public hearing and
9    which aspects may be amended only after a new public
10    hearing is held.
11    (b) A property assessed clean energy program may be amended
12in accordance with by resolution or ordinance of the governing
13body. Adoption of the resolution or ordinance establishing the
14program shall be preceded by a public hearing if required.
15(Source: P.A. 100-77, eff. 8-11-17; 100-863, eff. 8-14-18;
16100-980, eff. 1-1-19.)
 
17    (50 ILCS 50/20)
18    Sec. 20. Program Report. The report on the proposed program
19required under Section 15 shall include all of the following:
20        (1) a form of assessment contract between the
21    governmental local unit of government and record owner
22    governing the terms and conditions of financing and
23    assessment under the program; .
24        (2) identification of one or more officials an official
25    authorized to enter into an assessment contract on behalf

 

 

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1    of the governmental local unit of government;
2        (3) (blank); a maximum aggregate annual dollar amount
3    for all financing to be provided by the applicable program
4    administrator under the program;
5        (4) an application process and eligibility
6    requirements for financing or refinancing energy projects
7    under the program;
8        (5) a method for determining interest rates on amounts
9    financed or refinanced under assessment contracts
10    installments, repayment periods, and the maximum amount of
11    an assessment, if any;
12        (6) an explanation of the process for billing and
13    collecting how assessments will be made and collected;
14        (7) a plan to raise capital to finance improvements
15    under the program pursuant to the issuance sale of PACE
16    bonds under or in accordance with Section 35; , subject to
17    this Act or the Special Assessment Supplemental Bond and
18    Procedures Act, or alternatively, through the sale of bonds
19    by the Authority pursuant to subsection (d) of Section
20    825-65 of the Illinois Finance Authority Act;
21        (8) information regarding all of the following, to the
22    extent known, or procedures to determine the following in
23    the future:
24            (A) any revenue source or reserve fund or funds to
25        be used as security for PACE bonds described in
26        paragraph (7); and

 

 

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1            (B) any application, administration, or other
2        program fees to be charged to record owners
3        participating in the program that will be used to
4        finance and reimburse all or a portion of costs
5        incurred by the governmental local unit of government
6        as a result of its the program;
7        (9) a requirement that the term of an assessment not
8    exceed the useful life of the energy project financed or
9    refinanced under an assessment contract; provided that an
10    assessment contract financing or refinancing multiple
11    energy projects with varying lengths of useful life may
12    have a term that is calculated in accordance with the
13    principles established by the program report paid for by
14    the assessment; provided that the local unit of government
15    may allow projects that consist of multiple improvements
16    with varying lengths of useful life to have a term that is
17    no greater than the improvement with the longest useful
18    life;
19        (10) a requirement for an appropriate ratio of the
20    amount of the assessment to the greater of any of the
21    following: assessed value of the property or market value
22    of the property as determined by a recent appraisal no
23    older than 12 months;
24            (A) the value of the property as determined by the
25        office of the county assessor; or
26            (B) the value of the property as determined by an

 

 

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1        appraisal conducted by a licensed appraiser;
2        (11) a requirement that the record owner of property
3    subject to a mortgage obtain written consent from the
4    mortgage holder before participating in the program;
5        (12) provisions for marketing and participant
6    education; and
7        (13) (blank); provisions for an adequate debt service
8    reserve fund, if any; and
9        (14) quality assurance and antifraud measures.
10(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
11    (50 ILCS 50/25)
12    Sec. 25. Assessment contracts Contracts with record owners
13of property.
14    (a) A After creation of a program and PACE area, a record
15owner of property within the PACE area may apply to with the
16governmental local unit of government or its program
17administrator or program administrators for funding to finance
18or refinance an energy project under the governmental unit's
19program.
20    (b) A governmental local unit of government may impose an
21assessment under a property assessed clean energy program only
22pursuant to the terms of a recorded assessment contract with
23the record owner of the property to be assessed.
24    (c) Before entering into an assessment contract with a
25record owner under a program, the governmental unit or its

 

 

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1program administrator or program administrators local unit of
2government shall verify that the applicable property is
3entirely within the PACE area and receive evidence of all of
4the following:
5        (1) (blank); that the property is within the PACE area;
6        (2) that there are no delinquent taxes, special
7    assessments, or water or sewer charges on the property;
8        (3) that there are no delinquent assessments on the
9    property under a property assessed clean energy program;
10        (4) whether there are any no involuntary liens on the
11    property, including, but not limited to, construction or
12    mechanics liens, lis pendens or judgments against the
13    record owner, environmental proceedings, or eminent domain
14    proceedings;
15        (5) that no notices of default or other evidence of
16    property-based debt delinquency have been recorded and not
17    cured;
18        (6) that the record owner is current on all mortgage
19    debt on the property, the record owner has not filed for
20    bankruptcy in the last 2 years, and the property is not an
21    asset in to a current bankruptcy proceeding; .
22        (7) that all work requiring a license under any
23    applicable law to acquire, construct, install, or modify an
24    energy project make a qualifying improvement shall be
25    performed by a licensed registered contractor that has
26    agreed to adhere to a set of terms and conditions through a

 

 

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1    process established by the governmental local unit or its
2    program administrator or program administrators; of
3    government.
4        (8) that the contractor or contractors to be used have
5    signed a written acknowledgement that the governmental
6    unit or its program administrator or program
7    administrators local unit of government will not authorize
8    final payment to the contractor or contractors until the
9    governmental local unit of government has received written
10    confirmation from the record owner that the energy project
11    improvement was properly acquired, constructed, installed,
12    or modified and is operating as intended; provided,
13    however, that the contractor or contractors retain retains
14    all legal rights and remedies in the event there is a
15    disagreement with the record owner;
16        (9) that the aggregate amount financed or refinanced
17    under one or more amount of the assessment contracts does
18    not exceed 25% in relation to the greater of any of the
19    following:
20            (A) the value of the property as determined by the
21        office of the county assessor; or
22            (B) the value of the property as determined by an
23        appraisal conducted by a licensed appraiser the
24        assessed value of the property or the appraised value
25        of the property, as determined by a licensed appraiser,
26        does not exceed 25%; and

 

 

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1        (10) a requirement that an evaluation assessment of the
2    existing water or energy use and a modeling of expected
3    monetary savings have been conducted for any proposed
4    energy efficiency improvement, renewable energy
5    improvement, or water use improvement, unless the water use
6    improvement is undertaken to improve water quality
7    project.
8    (d) Before At least 30 days before entering into an
9assessment contract with the governmental local unit of
10government, the record owner shall provide to the mortgage
11holders of or loan servicers of any existing mortgages
12encumbering or otherwise secured by the property a notice of
13the record owner's intent to enter into an assessment contract
14with the governmental local unit of government, together with
15the maximum principal amount to be financed or refinanced and
16the maximum annual assessment necessary to repay that amount,
17along with an additional a request that the mortgage holders of
18or loan servicers of any existing mortgages consent to the
19record owner subjecting the property to the program. The
20governmental unit shall be provided with a A verified copy or
21other proof of those notices and the written consent of the
22existing mortgage holder for the record owner to enter into the
23assessment contract which acknowledges and acknowledging that
24(i) the existing mortgage or mortgages for which the consent
25was received will be subordinate to the financing and
26assessment contract and the lien created thereby and (ii) the

 

 

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1governmental agreement and that the local unit of government or
2its permitted assignee can foreclose the property if the
3assessments are assessment is not paid shall be provided to the
4local unit of government.
5    (e) (Blank). A provision in any agreement between a local
6unit of government and a public or private power or energy
7provider or other utility provider is not enforceable to limit
8or prohibit any local unit of government from exercising its
9authority under this Section.
10    (f) If the The record owner has signed a certification that
11the governmental local unit of government has complied with the
12provisions of this Section, then this which shall be conclusive
13evidence as to compliance with these provisions, but shall not
14relieve any contractor, or the governmental local unit of
15government, from any potential liability.
16    (g) (Blank). This Section is additional and supplemental to
17county and municipal home rule authority and not in derogation
18of such authority or limitation upon such authority.
19    (h) The imposition of any assessment pursuant to this Act
20shall be exempt from any other statutory procedures or
21requirements that condition the imposition of special
22assessments or other taxes against a property, except as
23specifically set forth in this Act.
24(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
25    (50 ILCS 50/30)

 

 

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1    Sec. 30. Assessments constitute a lien; billing and
2collecting.
3    (a) An assessment contract shall be recorded with the
4county in which the PACE area is located. An assessment imposed
5under a property assessed clean energy program pursuant to an
6assessment contract, including any interest on the assessment
7and any penalty, shall, upon recording of the assessment
8contract in the county in which the PACE area is located,
9constitute a lien against the property on which the assessment
10is imposed until the assessment, including any interest or
11penalty, is paid in full. The lien of the assessment contract
12shall run with the property until the assessment is paid in
13full and a satisfaction or release for the same has been
14recorded by the governmental unit or its program administrator
15or program administrators with the local unit of government and
16shall have the same lien priority and status as other property
17tax and special assessment liens as provided in the Property
18Tax Code. The governmental local unit of government (or any
19permitted assignee) shall have all rights and remedies in the
20case of default or delinquency in the payment of an assessment
21as it does with respect to delinquent property taxes and other
22delinquent special assessments as set forth in Article 9 of the
23Illinois Municipal Code, including the lien, sale, and
24foreclosure remedies described in that Article. When the
25assessment, including any interest and penalty, is paid in
26full, the lien shall be removed and released from the property.

 

 

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1    (a-5) The assessment shall be imposed by the governmental
2local unit of government against each lot, block, tract, track
3and parcel of land set forth in within the assessment contract
4PACE area to be assessed in accordance with an assessment roll
5setting forth: (i) a description of the method of spreading the
6assessment; (ii) a list of lots, blocks, tracts and parcels of
7land in the PACE area; and (iii) the amount assessed on each
8parcel. The assessment roll shall be filed with the county
9clerk of the county in which the PACE area is located for use
10in establishing the lien and collecting the assessment.
11    (b) (Blank). Installments of assessments due under a
12program may be included in each tax bill issued under the
13Property Tax Code and may be collected at the same time and in
14the same manner as taxes collected under the Property Tax Code.
15Alternatively, installments may be billed and collected as
16provided in a special assessment ordinance of general
17applicability adopted by the local unit of government pursuant
18to State law or local charter. In no event will partial payment
19of an assessment be allowed.
20    (b-5) Assessments created under this Act may be billed and
21collected as follows:
22        (1) A county which has established a program may
23    include assessments in the regular property tax bills of
24    the county. The county collector of the county in which a
25    PACE area is located may bill and collect assessments with
26    the regular property tax bills of the county if requested

 

 

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1    by a municipality within its jurisdiction; no municipality
2    is required to make such a request of its county collector.
3    If the county collector agrees to bill and collect
4    assessments with the regular property tax bills of the
5    county, then the applicable assessment contract shall be
6    filed with the county collector and the annual amount due
7    as set forth in an assessment contract shall become due in
8    installments at the times property taxes shall become due
9    in accordance with each regular property tax bill payable
10    during the year in which such assessment comes due;
11        (2) If the county collector does not agree to bill and
12    collect assessments with the regular property tax bills of
13    the county or the governmental unit in which the PACE area
14    is located declines to request the county collector to do
15    so, then the governmental unit shall bill and collect the
16    assessments, either directly or as permitted in paragraph
17    (3) of this subsection, and the annual amount due as set
18    forth in an assessment contract shall become due in
19    installments on or about the times property taxes would
20    otherwise become due in accordance with each regular
21    property tax bill payable during the year in which such
22    assessment comes due; or
23        (3) If a governmental unit is billing and collecting
24    assessments pursuant to paragraph (2) of this subsection,
25    assessment installments may be billed and collected by the
26    governmental unit's program administrator or program

 

 

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1    administrators or another third party.
2    The assessment installments for assessments billed as
3provided for under any paragraph of this subsection shall be
4payable at the times and in the manner as set forth in the
5applicable bill.
6    (c) If a governmental unit, a program administrator, or
7another third party is billing and collecting assessments
8pursuant to subsection (b-5), and the applicable assessment
9becomes delinquent during any year, the applicable collector
10shall, on or before the date in such year required by the
11county in which the PACE area is located, make a report in
12writing to the general office of the county in which the
13applicable property subject to the assessment is situated and
14authorized by the general revenue laws of this State to apply
15for judgment and sell lands for taxes due the county and the
16State, of the assessments or installments thereof the
17applicable collector has billed for and not received as
18required under the applicable bill, including any interest or
19penalties that may be due as set forth in the applicable
20assessment contract. This report shall be certified by the
21applicable collector and shall include statements that (i) the
22report contains true and correct list of delinquent assessments
23that the collector has not received as required by the
24applicable bill and (ii) an itemization of the amount of the
25delinquent assessment, including interest and penalties, if
26applicable. The report of the applicable collector, when so

 

 

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1made, shall be prima facie evidence that all requirements of
2the law in relation to making the report have been complied
3with and that the assessments or the matured installments
4thereof, and the interest thereon, and the interest accrued on
5installments not yet matured, mentioned in the report, are due
6and unpaid. Upon proper filing of such report, at the direction
7of the governmental unit or its permitted assignee, the county
8collector shall enforce the collection of the assessments in
9the manner provided by law.
10    (d) Payment received by mail and postmarked on or before
11the required due date is not delinquent. From and after the due
12date of any installment of an assessment, an additional rate of
13interest of 1 1/2% per month may be imposed with respect to the
14delinquent amount of such installment, which shall be payable
15to the applicable governmental unit or other permitted assignee
16as set forth in the applicable bill.
17(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19;
18revised 9-28-18.)
 
19    (50 ILCS 50/35)
20    Sec. 35. Issuance of PACE bonds Bonds.
21    (a) Except as provided for in subsection (k), a
22governmental unit shall A local unit of government may issue
23PACE bonds under this Act or the Special Assessment
24Supplemental Bond and Procedures Act, or the Authority shall
25may issue PACE bonds in accordance with this Act and pursuant

 

 

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1to under subsection (d) of Section 825-65 of the Illinois
2Finance Authority Act upon assignment of the assessment
3contracts securing such bonds by the local unit of government
4to the Authority, in either case to finance or refinance energy
5projects under a property assessed clean energy program.
6Interim financing prior to the issuance of bonds authorized by
7this Section may be provided only by a warehouse fund, except
8that warehouse funds established by a warehouse lender may only
9hold assessment contracts for 36 months or less.
10    (b) PACE bonds issued under this Act or in accordance with
11this Act and pursuant to subsection (d) of Section 825-65 of
12the Illinois Finance Authority Act: Bonds issued under
13subsection (a) shall
14        (1) shall not be general obligations of the
15    governmental local unit of government or the Authority, as
16    applicable, but shall be secured by the following as
17    provided by the governing body in the resolution or
18    ordinance approving the bonds:
19            (A) (1) payments under one or more assessment
20        contracts of assessments on benefited property or
21        properties within the PACE area or PACE areas
22        specified; and
23            (B) if applicable, municipal bond insurance,
24        letters of credit, or public or private guarantees or
25        sureties; and
26            (C) (2) if applicable, revenue sources or reserves

 

 

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1        established by the governmental local unit of
2        government or the Authority from bond proceeds or other
3        lawfully available funds; .
4        (2) may be secured on a parity basis with PACE bonds of
5    another series or subseries issued by the governmental unit
6    or the Authority pursuant to the terms of a master
7    indenture entered into as authorized by an ordinance or
8    resolution adopted by the governing body or the Authority,
9    as applicable;
10        (3) may bear interest at any rate or rates not to
11    exceed such rate or rates as the governing body or the
12    Authority shall determine by ordinance or resolution;
13        (4) may pay interest upon the date or dates described
14    in such PACE bonds;
15        (5) shall have a maturity no more than 40 years from
16    the date of issuance;
17        (6) may be subject to redemption with or without
18    premium upon such terms and provisions as may be provided
19    under the terms of a master indenture entered into as
20    authorized by an ordinance or resolution adopted by the
21    governing body or the Authority, as applicable, including,
22    without limitation, terms as to the order of redemption
23    (numerical, pro rata, by series, subseries, or otherwise)
24    and as to the timing thereof;
25        (7) shall be negotiable instruments under Illinois law
26    and be subject to the Registered Bond Act; and

 

 

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1        (8) may be payable either serially or at term, or any
2    combination thereof, in such order of preference,
3    priority, lien position, or rank (including, without
4    limitation, numerical, pro rata, by series, subseries, or
5    otherwise) as the governing body or Authority may provide.
6    (c) A pledge of assessments, funds, or contractual rights
7made by a governmental unit or the Authority governing body in
8connection with the issuance of PACE bonds by a local unit of
9government under this Act or in accordance with this Act and
10pursuant to Section 825-65 of the Illinois Finance Authority
11Act constitutes a statutory lien on the assessments, funds, or
12contractual rights so pledged in favor of the person or persons
13to whom the pledge is given, without further action taken by a
14governmental unit or the Authority, as applicable by the
15governing body. The statutory lien is valid and binding against
16all other persons, with or without notice.
17    (d) (Blank). Bonds of one series issued under this Act may
18be secured on a parity with bonds of another series issued by
19the local unit of government or the Authority pursuant to the
20terms of a master indenture or master resolution entered into
21or adopted by the governing body of the local unit of
22government or the Authority.
23    (d-5) The State pledges to and agrees with the holders of
24any PACE bonds issued under this Act or in accordance with the
25Act and pursuant to Section 825-65 of the Illinois Finance
26Authority Act that the State will not limit or alter the rights

 

 

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1and powers vested in governmental units by this Act or in the
2Authority in accordance with this Act and pursuant to Section
3825-65 of the Illinois Finance Authority Act so as to impair
4the terms of any contract made by a governmental unit or by the
5Authority with those bondholders or in any way to impair the
6rights or remedies of those bondholders until the PACE bonds,
7together with the interest thereon, and all costs and expenses
8in connection with any actions or proceedings by or on behalf
9of those bondholders are fully met and discharged.
10    (e) (Blank). Bonds issued under this Act are subject to the
11Bond Authorization Act and the Registered Bond Act.
12    (f) PACE bonds Bonds issued under this Act or in accordance
13with this Act and pursuant to Section 825-65 of the Illinois
14Finance Authority Act further essential public and
15governmental purposes, including, but not limited to, reduced
16energy costs and , reduced greenhouse gas emissions, enhanced
17water quality and conservation, economic stimulation and
18development, improved property resiliency and valuation, and
19increased employment.
20    (g) A capital provider program administrator can assign its
21rights to purchase PACE the bonds issued by the governmental
22unit or the Authority to a designated transferee to a third
23party.
24    (h) A law firm shall be retained to give a written bond
25opinion in connection with any PACE bond issued under this Act
26or in accordance with this Act and pursuant to Section 825-65

 

 

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1of the Illinois Finance Authority Act in form and substance as
2requested by the issuer of the PACE bonds or the capital
3provider.
4    (i) PACE bonds Bonds issued by the Authority in accordance
5with under this Act and pursuant to subsection (d) of Section
6825-65 of the Illinois Finance Authority Act shall not be
7entitled to the benefits of Section 825-75 of the Illinois
8Finance Authority Act.
9    (j) PACE bonds issued by a governmental unit may otherwise
10have any attributes permitted to bonds under the Local
11Government Debt Reform Act, as the governing body may provide.
12    (k) Interim financing prior to the issuance of PACE bonds
13authorized by this Section may be provided only by a warehouse
14fund, except that warehouse funds established by capital
15providers shall only interim finance energy projects secured by
16one or more assessment contracts for 36 months or less from the
17date of recording of the applicable assessment contract.
18(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
 
19    (50 ILCS 50/42 new)
20    Sec. 42. Supplemental powers.
21    (a) The provisions of this Act are intended to be
22supplemental and in addition to all other powers or authorities
23granted to any governmental unit, shall be construed liberally,
24and shall not be construed as a limitation of any power or
25authority otherwise granted.

 

 

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1    (b) A governmental unit may use the provisions of this Act
2by referencing this Act in the resolution or ordinance
3described in Section 15.
 
4    (50 ILCS 50/45 new)
5    Sec. 45. Recital. PACE bonds that are issued under this Act
6or in accordance with this Act and pursuant to Section 825-65
7of the Illinois Finance Authority Act may contain a recital to
8that effect and any such recital shall be conclusive as against
9the issuer thereof and any other person as to the validity of
10the PACE bonds and as to their compliance with the provisions
11of this Act and, as applicable, the provisions of Section
12825-65 of the Illinois Finance Authority Act.
 
13    (50 ILCS 50/50 new)
14    Sec. 50. Validation. All actions taken by the Authority or
15any governmental unit under this Act prior to the effective
16date of this amendatory Act of the 101st General Assembly,
17including, without limitation, creation of a property assessed
18clean energy program under Section 10 and Section 15,
19preparation and approval of a report on the proposed program
20under Section 20, entering into assessment contracts under
21Section 25, and issuance of bonds, notes, and other evidences
22of indebtedness under Section 35 shall be unaffected by the
23enactment of this amendatory Act of the 101st General Assembly
24and shall continue to be legal, valid, and in full force and

 

 

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1effect, notwithstanding any lack of compliance with the
2requirements of this amendatory Act of the 101st General
3Assembly.
 
4    (50 ILCS 50/40 rep.)
5    Section 10. The Property Assessed Clean Energy Act is
6amended by repealing Section 40.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.".