|
||||
Public Act 096-0946 |
||||
| ||||
| ||||
AN ACT concerning regulation.
| ||||
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 School | ||||
District Intergovernmental Cooperation Renewable Energy Act. | ||||
Section 5. Findings. The General Assembly finds that there | ||||
is a need to promote the use of renewable energy resources, | ||||
including facilities designed to convert wind or solar power to | ||||
energy, and to promote employment in the construction and | ||||
operation of such facilities, and further finds that a means of | ||||
meeting such need is to authorize school districts to join | ||||
together to acquire and construct facilities for such purposes. | ||||
Section 10. Definitions. In this Act: | ||||
"Agency" means a joint action agency organized and | ||||
operating under this Act.
| ||||
"Applicable law" means any provision of law, including this | ||||
Act, authorizing school districts to issue bonds as that term | ||||
is defined in the Local Government Debt Reform Act.
| ||||
"Board" means the board of directors of an agency organized | ||||
under this Act.
| ||||
"Bond" means a bond as such term is defined in the Local | ||||
Government Debt Reform Act issued by an agency payable from one |
or more of the agency's revenue sources and other sources as | ||
the agency may lawfully pledge, which sources may include | ||
school district bonds or proceeds or payments to be made | ||
pursuant to an intergovernmental agreement.
| ||
"Eligible project" means any land or rights in land, plant, | ||
works, system, facility, machinery, intellectual property, or | ||
other real or personal property of any nature whatsoever, | ||
together with all parts thereof and appurtenances thereto, used | ||
or useful in the generation, production, such distribution or | ||
transmission as may be required in a relevant electric service | ||
agreement, purchase, sale, exchange, or interchange of | ||
electrical energy derived from renewable energy resources as | ||
defined in Section 1-10 of the Illinois Power Agency Act, | ||
including wind, solar power, and other renewable resources, and | ||
in the acquisition, extraction, conversion, transportation, | ||
storage, or reprocessing of ancillary fuel of any kind for any | ||
of those purposes, or any interest in, or right to the use, | ||
services, output, or capacity of any plant, works, system, or | ||
facilities.
| ||
"Governing body" means the school board having charge of | ||
the corporate affairs of a school district.
| ||
"Intergovernmental agreement" means the agreement by which | ||
an agency is formed by school districts pursuant to this Act.
| ||
"Members" means the school districts joining pursuant to | ||
intergovernmental agreement to organize an agency under this | ||
Act.
|
"Resolution" means a resolution duly adopted by a governing | ||
body.
| ||
"Revenue source" means any revenue source as such term is | ||
defined in the Local Government Debt Reform Act.
| ||
"School district" means a combined elementary district, a | ||
combined high school district, a combined unit district, a unit | ||
district, a combined high school unit district, an elementary | ||
district, or an optional elementary unit district organized and | ||
operating under the School Code of the State of Illinois, but | ||
does not include any office, officer, department, division, | ||
bureau, board, commission, or similar agency of the State of | ||
Illinois.
| ||
"School district bond" means any bond as such term is | ||
defined in the Local Government Debt Reform Act authorized or | ||
issued by or on behalf of a school district under applicable | ||
law.
| ||
Section 15. Powers supplemental. The provisions of this Act | ||
are intended to be supplemental and, in addition to all other | ||
powers or authorities granted to any school district, shall be | ||
construed liberally and shall not be construed as a limitation | ||
of any power or authority otherwise granted. | ||
Section 20. Actions by resolution. All actions to be taken | ||
by a school district or an agency pursuant to this Act shall be | ||
fully effective if taken by resolution. |
Section 25. Agency status. An agency organized under this | ||
Act shall be a unit of local government of the State of | ||
Illinois and a body politic and corporate. | ||
Section 30. Organization. Any 2 or more school districts, | ||
whether contiguous or noncontiguous, may form an agency by the | ||
execution of an intergovernmental agreement authorized by | ||
resolution adopted by the governing body of each school | ||
district. The intergovernmental agreement shall state or may | ||
state, as applicable, the following:
| ||
(1) the name of the agency and the date of its | ||
establishment, which may be by reference to a date or the | ||
dates of the resolutions adopted by the governing bodies, | ||
and the duration of its existence, which may be perpetual;
| ||
(2) the names of the school districts that have adopted | ||
the intergovernmental agreement and constitute the initial | ||
members;
| ||
(3) the names and addresses of the persons initially | ||
appointed in the resolutions adopting the | ||
intergovernmental agreement to serve as initial directors | ||
on the board and provision for the organizational meeting | ||
of the agency;
| ||
(4) provision for the terms of office of the directors | ||
and for alternate directors, if so provided, but such | ||
directors and alternate directors shall always be selected |
and vacancies in their offices declared and filled by | ||
resolutions adopted by the governing body of the respective | ||
school districts;
| ||
(5) if so provided, provision for weighted voting among | ||
the school districts or by the directors;
| ||
(6) the location by city, village, or incorporated town | ||
in the State of Illinois of the principal office of the | ||
agency;
| ||
(7) provision for amendment of the intergovernmental | ||
agreement;
| ||
(8) if provided, initial funding for the agency, which | ||
may include binding agreements of the school districts to | ||
provide money or to issue school district bonds for the | ||
benefit of the agency;
| ||
(9) provisions for the disposition, division, or | ||
distribution of obligations, property, and assets of the | ||
agency upon dissolution; and
| ||
(10) any other provisions for regulating the business | ||
of the agency or the conduct of its affairs consistent with | ||
this Act.
| ||
Section 35. Officers; board; bylaws. | ||
(a) At the organizational meeting of the board, the | ||
directors shall elect from their members a presiding officer to | ||
preside over the meetings of the board and an alternate | ||
presiding officer and may elect an executive board. The board |
shall determine and designate in the agency's bylaws the titles | ||
for the presiding officers. The directors shall also elect a | ||
secretary and treasurer, who need not be directors. The board | ||
may select such other officers, employees, and agents as deemed | ||
to be necessary, who need not be directors or residents of any | ||
of the school districts that are members. The board may | ||
designate appropriate titles for all other officers, | ||
employees, and agents. All persons selected by the board shall | ||
hold their respective offices at the pleasure of the board, and | ||
give bond as may be required by the board.
| ||
(b) The board is the corporate authority of the agency and | ||
shall exercise all the powers and manage and control all of the | ||
affairs and property of the agency. The board shall have full | ||
power to pass all necessary resolutions and rules for the | ||
proper management and conduct of the business of the agency and | ||
for carrying into effect the objects for which the agency was | ||
established. The board shall have not less than one meeting | ||
each year for the election of officers and the transaction of | ||
any other business. Unless otherwise provided by this Act, the | ||
intergovernmental agreement, or the bylaws, an act of the | ||
majority of the directors present at a meeting at which a | ||
quorum is present is required for an act of the board.
| ||
(c) The board shall adopt bylaws that may include without | ||
limitation the following provisions:
| ||
(1) the rights and obligations of members consistent | ||
with the intergovernmental agreement and this Act;
|
(2) if not governed in the intergovernmental | ||
agreement, then the manner of adding new members and the | ||
rights and obligations of the members;
| ||
(3) the time, place, and date of the regular meeting or | ||
meetings and the procedures for calling special meetings of | ||
the board;
| ||
(4) procedural rules;
| ||
(5) the composition, powers, and responsibilities of | ||
any committee or executive board;
| ||
(6) the criteria as called for in item (20) of Section | ||
55 of this Act; and
| ||
(7) other rules or provisions for regulating the | ||
affairs of the agency as the board shall determine to be | ||
advisable.
| ||
Section 40. Filing. Within 3 months after the | ||
organizational meeting, the board shall cause a certified copy | ||
of the intergovernmental agreement to be filed with the | ||
Secretary of State of Illinois. The Secretary of State shall | ||
accept such filing and issue an acknowledgement of filing over | ||
his or her signature and the Great Seal of the State. The | ||
Secretary of State shall make and keep a register of agencies | ||
established under this Act. | ||
Section 45. Place of business. Every agency shall maintain | ||
an office in the State of Illinois to be known as its principal |
office. When an agency desires to change the location of such | ||
office, it shall file with the Secretary of State a certificate | ||
of change of location, stating the new address and the | ||
effective date of change. Meetings of the board may be held at | ||
any place within the State of Illinois designated by the board | ||
after notice. | ||
Section 50. Lawful expense of school district. Each member | ||
shall have full power and authority to appropriate money from | ||
its operation and maintenance fund, by whatever name now or | ||
hereafter known, for the payment of the expenses of the agency | ||
and of its representative in exercising its functions as a | ||
member of the agency, which expenses may include payment of | ||
principal of and interest on bonds of the agency for a period | ||
not greater than 40 years after the dated date of any bonds. | ||
Each member shall have full power and authority, subject to the | ||
provisions of applicable law, to agree to the issuance and | ||
delivery of school district bonds to aid the agency. | ||
Section 55. Powers and duties generally. An agency shall | ||
have all the powers and duties enumerated in this Section in | ||
furtherance of the purposes of this Act. In the exercise | ||
thereof it shall be deemed to be performing an essential | ||
governmental function and exercising a part of the sovereign | ||
powers of the State of Illinois, separate and distinct from | ||
member school districts, and shall have the privileges, |
immunities, and rights of a public body politic and corporate, | ||
municipal corporation, and unit of local government, but shall | ||
not have taxing power. All powers of the agency shall be | ||
exercised by its board unless otherwise provided by the bylaws. | ||
(1) An agency may plan, finance, acquire, construct, | ||
reconstruct, own, lease, operate, maintain, repair, | ||
improve, extend, or otherwise participate in, individually | ||
or jointly with other persons or other entities of any | ||
type, one or more eligible projects, proposed, existing, or | ||
under construction, within or without the State of | ||
Illinois, acquire any interest in or any right to products | ||
and services of an eligible project, purchase, own, sell, | ||
dispose of, or otherwise participate in securities issued | ||
in connection with the financing of an eligible project or | ||
any portion thereof, create such subsidiary entity or | ||
entities of any type as may be necessary or desirable, and | ||
may act as agent, or designate one or more persons, public | ||
agencies, or other entities of any type, whether or not | ||
participating in an eligible project, to act as its agent, | ||
in connection with the planning, financing, acquisition, | ||
construction, reconstruction, ownership, lease, operation, | ||
maintenance, repair, extension, or improvement of the | ||
eligible project.
| ||
(2) An agency may investigate the desirability of and | ||
necessity for additional means of providing electrical | ||
energy from wind sources of any kind for such purpose and |
make studies, surveys, and estimates as may be necessary to | ||
determine its feasibility and cost.
| ||
(3) An agency may cooperate with other persons, public | ||
agencies, or other entities of any type in the development | ||
of means of providing electrical energy from wind sources | ||
of any kind for those purposes and give assistance with | ||
personnel and equipment in any eligible project.
| ||
(4) An agency may structure the ownership and | ||
investment in an eligible project in such a way as to | ||
maximize the use of any available United States federal | ||
incentives for such projects, including, but not limited | ||
to, New Markets Tax Credits under Section 45D of the | ||
Internal Revenue Code of 1986, as amended, or any successor | ||
provision.
| ||
(5) An agency may apply for consents, authorizations, | ||
or approvals required for any eligible project within its | ||
powers and take all actions necessary to comply with the | ||
conditions thereof.
| ||
(6) An agency may perform any act authorized by this | ||
Act through, or by means of, its officers, agents, or | ||
employees or by contract with others, including without | ||
limitation the employment of engineers, architects, | ||
attorneys, appraisers, financial advisors, and such other | ||
consultants and employees as may be required in the | ||
judgment of the agency, and fix and pay their compensation | ||
from funds available to the agency.
|
(7) An agency may, individually or jointly with other | ||
persons, public agencies, or other entities of any type, | ||
acquire, hold, use, and dispose of income, revenues, funds, | ||
and money.
| ||
(8) An agency may, individually or jointly with other | ||
persons, public agencies, or other entities of any type, | ||
acquire, own, hire, use, operate and dispose of personal | ||
property and any interest therein.
| ||
(9) An agency may, individually or jointly with other | ||
persons, public agencies, or other entities of any type, | ||
acquire, own, use, lease as lessor or lessee, operate, and | ||
dispose of real property and interests in real property, | ||
including eligible projects existing, proposed, or under | ||
construction, and make improvements thereon.
| ||
(10) An agency may grant the use by franchise, lease, | ||
or otherwise and make charges for the use of any property | ||
or facility owned or controlled by it.
| ||
(11) An agency may borrow money and issue negotiable | ||
bonds, secured or unsecured, in accordance with this Act.
| ||
(12) An agency may invest money of the agency not | ||
required for immediate use, including proceeds from the | ||
sale of any bonds, in such obligations, securities, and | ||
other investments as authorized by the provisions of the | ||
Public Funds Investment Act. | ||
(13) An agency may determine the location and character | ||
of, and all other matters in connection with, any and all |
eligible projects it is authorized to acquire, hold, | ||
establish, effectuate, operate, or control.
| ||
(14) An agency may contract with any persons, public | ||
agencies, or other entities of any type for the planning, | ||
development, construction, or operation of any eligible | ||
project or for the sale, transmission, or distribution of | ||
the products and services of any eligible project, or for | ||
any interest therein or any right to the products and | ||
services thereof, on such terms and for such period not in | ||
excess of 50 years of time as its board shall determine.
| ||
(15) An agency may enter into any contract or agreement | ||
necessary, appropriate, or incidental to the effectuation | ||
of its lawful purposes and the exercise of the powers | ||
granted by this Act for a period not in excess of 50 years | ||
in time, including without limitation contracts or | ||
agreements for the purchase, sale, exchange, interchange, | ||
wheeling, pooling, transmission, distribution, or storage | ||
of electrical energy and fuel of any kind for any such | ||
purposes, within and without the State of Illinois, in such | ||
amounts as it shall determine to be necessary and | ||
appropriate to make the most effective use of its powers | ||
and to meet its responsibilities, on such terms and for | ||
such period of time as its board determines. Any such | ||
contract or agreement may include provisions for | ||
requirements purchases, restraints on resale or other | ||
dealings, exclusive dealing, pricing, territorial |
division, and other conduct or arrangements that do not | ||
have an anti-competitive effect.
Provided, however, that | ||
the production, interconnection, transmission, | ||
distribution, and sale at wholesale or retail of electric | ||
energy generated by the eligible project must be in | ||
accordance with all laws, regulations, and rules | ||
applicable to generators of electricity, alternative | ||
retail electric suppliers, municipal utilities, or | ||
electric cooperatives, as applicable, but further provided | ||
that this provision does not affect any exemption otherwise | ||
available under the Public Utilities Act. | ||
(16) An agency may procure insurance against any losses | ||
in connection with its property, operations, or assets in | ||
such amounts and from such insurers as it deems desirable | ||
or may self-insure or enter into pooled insurance | ||
arrangements with other school districts against such | ||
losses.
| ||
(17) An agency may contract for and accept any gifts or | ||
grants or loans of funds or property or financial or other | ||
aid in any form from any source and may comply, subject to | ||
the provisions of this Act, with the terms and conditions | ||
thereof.
| ||
(18) An agency may mortgage, pledge, or grant a | ||
security interest in any or all of its real and personal | ||
property to secure the payment of its bonds or contracts.
| ||
(19) That part of an eligible project owned by an |
agency shall be exempt from property taxes.
| ||
(20) An agency shall not be subject to any taxes of the | ||
State of Illinois based on or measured by income or | ||
receipts or revenue.
| ||
(21) An agency may adopt a corporate seal and may sue | ||
and be sued.
| ||
(22) An agency may exercise all other powers not | ||
inconsistent with the Constitution of the State of Illinois | ||
or the United States Constitution, which powers may be | ||
reasonably necessary or appropriate for or incidental to | ||
effectuate its authorized purposes or to the exercise of | ||
any of the powers enumerated in this Act.
| ||
Section 60. Bonds. An agency may issue bonds pursuant to | ||
applicable law and the following provisions:
| ||
(1) An agency may from time to time issue its bonds in | ||
such principal amounts as the agency shall deem necessary | ||
to provide sufficient funds to carry out any of its | ||
corporate purposes and powers, including without | ||
limitation the acquisition, construction, or termination | ||
of any eligible project to be owned or leased, as lessor or | ||
lessee, by the agency, or the acquisition of any interest | ||
therein or any right to the products or services thereof, | ||
the funding or refunding of the principal of, redemption | ||
premium, if any, and interest on, any bonds issued by it | ||
whether or not such bonds or interest to be funded or |
refunded have or have not become due, the payment of | ||
engineering, legal and other expenses, together with | ||
interest for a period of 3 years or to a date one year | ||
subsequent to the estimated date of completion of the | ||
project, whichever period is longer, the establishment or | ||
increase of reserves to secure or to pay such bonds or | ||
interest thereon, the providing of working capital and the | ||
payment of all other costs or expenses of the agency | ||
incident to and necessary or convenient to carry out its | ||
corporate purposes and powers.
| ||
(2) Every issue of bonds of the agency shall be payable | ||
out of the revenues or funds available to the agency, | ||
subject to any agreements with the holders of particular | ||
bonds pledging any particular revenues or funds. An agency | ||
may issue types of bonds as it may determine, including | ||
bonds as to which the principal and interest are payable | ||
exclusively from the revenues from one or more projects, or | ||
from an interest therein or a right to the products and | ||
services thereof, or from one or more revenue producing | ||
contracts made by the agency, or its revenues generally. | ||
Any such bonds may be additionally secured by a pledge of | ||
any grant, subsidy, or contribution from any source or a | ||
pledge of any income or revenues, funds, or moneys of the | ||
agency from any source whatsoever.
| ||
(3) All bonds of an agency shall have all the qualities | ||
of negotiable instruments under the laws of this State.
|
(4) Bonds of an agency shall be authorized by | ||
resolution of its board and may be issued under such | ||
resolution or under a trust indenture or other security | ||
agreement, in one or more series, and shall bear the date | ||
or dates, mature at a time or times within the estimated | ||
period of usefulness of the project involved and in any | ||
event not more than 40 years after the date thereof, bear | ||
interest at such rate or rates without regard to any | ||
limitation in any other law, be in such denominations, be | ||
in such form, either coupon or registered, carry such | ||
conversion, registration, and exchange privileges, have | ||
such rank or priority, be executed in such manner, be | ||
payable in such medium of payment at such place or places | ||
within or without the State of Illinois, be subject to such | ||
terms of redemption with or without premium, and contain or | ||
be subject to such other terms as the resolution, trust | ||
indenture, or other security agreement may provide, and | ||
shall not be restricted by the provisions of any other law | ||
limiting the amounts, maturities, interest rates, or other | ||
terms of obligations of units of local government or | ||
private parties. The bonds shall be sold in a manner and at | ||
such price as the board shall determine at private or | ||
public sale.
| ||
(5) Bonds of an agency may be issued under the | ||
provisions of this Act without obtaining the consent of any | ||
department, division, commission, board, bureau, or agency |
of the State of Illinois or of any member, except as may be | ||
limited in an intergovernmental agreement, and without any | ||
other proceeding or the happening of any other condition or | ||
occurrence except as specifically required by this Act.
| ||
(6) The resolution, trust indenture, or other security | ||
agreement under which any bonds are issued shall constitute | ||
a contract with the holders of the bonds and may contain | ||
provisions, among others, prescribing:
| ||
(A) the terms and provisions of the bonds;
| ||
(B) the mortgage or pledge of and the grant of a | ||
security interest in any real or personal property and | ||
all or any part of the revenue from any project or any | ||
revenue producing contract made by the agency to secure | ||
the payment of bonds, subject to any agreements with | ||
the holders of bonds which might then exist;
| ||
(C) the custody, collection, securing, | ||
investments, and payment of any revenues, assets, | ||
money, funds, or property with respect to which the | ||
agency may have any rights or interest;
| ||
(D) the rates or charges for the products or | ||
services rendered by the agency, the amount to be | ||
raised by the rates or charges, and the use and | ||
disposition of any or all revenue;
| ||
(E) the creation of reserves or sinking funds and | ||
the regulation and disposition thereof;
| ||
(F) the purposes to which the proceeds from the |
sale of any bonds then or thereafter to be issued may | ||
be applied, and the pledge of revenues to secure the | ||
payment of the bonds;
| ||
(G) the limitations on the issuance of any | ||
additional bonds, the terms upon which additional | ||
bonds may be issued and secured, and the refunding of | ||
outstanding bonds;
| ||
(H) the rank or priority of any bonds with respect | ||
to any lien or security;
| ||
(I) the creation of special funds or moneys to be | ||
held in trust or otherwise for operational expenses, | ||
payment, or redemption of bonds, reserves or other | ||
purposes, and the use and disposition of moneys held in | ||
such funds;
| ||
(J) the procedure by which the terms of any | ||
contract with or for the benefit of the holders of | ||
bonds may be amended or revised, the amount of bonds | ||
the holders of which must consent thereto, and the | ||
manner in which consent may be given;
| ||
(K) the definition of the acts or omissions to act | ||
that shall constitute a default in the duties of the | ||
agency to holders of its bonds, and the rights and | ||
remedies of the holders in the event of default, | ||
including, if the agency so determines, the right to | ||
accelerate the due date of the bonds or the right to | ||
appoint a receiver or receivers of the property or |
revenues subject to the lien of the resolution, trust | ||
indenture, or other security agreement;
| ||
(L) any other or additional agreements with or for | ||
the benefit of the holders of bonds or any covenants or | ||
restrictions necessary or desirable to safeguard the | ||
interests of the holders;
| ||
(M) the custody of its properties or investments, | ||
the safekeeping thereof, the insurance to be carried | ||
thereon, and the use and disposition of insurance | ||
proceeds;
| ||
(N) the vesting in a trustee or trustees, within or | ||
without the State of Illinois, of such properties, | ||
rights, powers, and duties in trust as the agency may | ||
determine; or the limiting or abrogating of the rights | ||
of the holders of any bonds to appoint a trustee, or | ||
the limiting of the rights, powers, and duties of such | ||
trustee; or
| ||
(O) the appointment of and the establishment of the | ||
duties and obligations of any paying agent or other | ||
fiduciary within or without the State of Illinois.
| ||
(7) For the security of bonds issued or to be issued by | ||
an agency, the agency may mortgage or execute deeds of | ||
trust of the whole or any part of its property and | ||
franchises. Any pledge of revenues, securities, contract | ||
rights, or other personal property made by an agency | ||
pursuant to this Act shall be valid and binding from the |
date the pledge is made. The revenues, securities, contract | ||
rights, or other personal property so pledged and then held | ||
or thereafter received by the agency or any fiduciary shall | ||
immediately be subject to the lien of the pledge without | ||
any physical delivery thereof or further act, and the lien | ||
of the pledge shall be valid and binding as against all | ||
parties having claims of any kind in tort, contract, or | ||
otherwise against the agency without regard to whether the | ||
parties have notice. The resolution, trust indenture, | ||
security agreement, or other instrument by which a pledge | ||
is created shall be recorded in the county in which the | ||
principal office is located in the manner provided by law.
| ||
(8) Neither the officials, the directors, nor the | ||
members of an agency nor any person executing bonds shall | ||
be liable personally on the bonds or be subject to any | ||
personal liability or accountability by reason of the | ||
issuance thereof. An agency shall have power to indemnify | ||
and to purchase and maintain insurance on behalf of any | ||
director, officer, employee, or agent of the agency, in | ||
connection with any threatened, pending, or completed | ||
action, suit, or proceeding.
| ||
(9) An agency shall have power to purchase out of any | ||
funds available therefor, bonds, and to hold for | ||
re-issuance, pledge, cancel, or retire the bonds and | ||
coupons prior to maturity, subject to and in accordance | ||
with any agreements with the holders.
|
(10) The principal of and interest upon any bonds | ||
issued by an agency shall be payable solely from the | ||
revenue sources or funds pledged or available for their | ||
payment as authorized in this Act. Each bond shall contain | ||
a statement that it constitutes an obligation of the agency | ||
issuing the bond, that its principal and interest are | ||
payable solely from revenues or funds of the agency and | ||
that neither the State of Illinois nor any political | ||
subdivision thereof, except the issuer, nor any school | ||
district that is a member of the agency, is obligated to | ||
pay the principal or interest on the bonds and that neither | ||
the faith and credit nor the taxing power of the State of | ||
Illinois or any such political subdivision thereof or of | ||
any such school district is pledged to the payment of the | ||
principal of or the interest on the bonds.
| ||
Section 65. Charges. An agency may establish, levy, and | ||
collect or may authorize, by contract, franchise, lease, or | ||
otherwise, the establishment, levying, and collection of | ||
rents, rates, and other charges for the products and services | ||
afforded by the agency or by or in connection with any eligible | ||
project or properties that it may construct, acquire, own, | ||
operate, or control or with respect to which it may have any | ||
interest or any right to the products and services thereof as | ||
it may deem necessary, proper, desirable, or reasonable, except | ||
that such agency shall not sell electricity to end-use |
customers otherwise than in accordance with the provisions of | ||
the Public Utilities Act, but further provided that this | ||
provision does not affect any exemption otherwise available to | ||
the agency under the Public Utilities Act. Rents, rates, and | ||
other charges shall be established so as to be sufficient to | ||
meet the operation, maintenance, and other expenses thereof, | ||
including reasonable reserves, interest, and principal | ||
payments, including payments into one or more sinking funds for | ||
the retirement of principal. An agency may pledge its rates, | ||
rents, and other revenue, or any part thereof, as security for | ||
the repayment, with interest and premium, if any, of any moneys | ||
borrowed by it or advanced to it for any of its authorized | ||
purposes and as security for the payment of amounts due and | ||
owing by it under any contract. | ||
Section 70. School districts may contract. | ||
(a) In order to accomplish the purposes of this Act, a | ||
school district may enter into and carry out contracts and | ||
agreements for the sale, lease, or other use of property, real | ||
or personal, cooperative provision of services, such as police | ||
services, or the purchase of power from an agency, or | ||
transmission services, development services, and other | ||
services.
| ||
(b) Any contract and agreement shall be for a period not to | ||
exceed 50 years and shall contain other terms, conditions, and | ||
provisions that are not inconsistent with the provisions of |
this Act as the governing body of such school district shall | ||
approve, including without limitation provisions whereby the | ||
school district is obligated to pay for the products and | ||
services of an agency without set-off or counterclaim and | ||
irrespective of whether such products or services are | ||
furnished, made available, or delivered to the school district, | ||
or whether any project contemplated by any such contract and | ||
agreement is completed, operable or operating, and | ||
notwithstanding suspension, interruption, interference, | ||
reduction, or curtailment of the products and services of the | ||
project.
| ||
(c) Any contract and agreement may be pledged by the agency | ||
to secure its obligations and may provide that if one or more | ||
school districts defaults in the payment of its obligations | ||
under such contract and agreement, the remaining school | ||
districts having such contracts and agreements shall be | ||
required to pay for and shall be entitled proportionately to | ||
use or otherwise dispose of the products and services that were | ||
to be purchased by the defaulting school district.
| ||
(d) Any contract and agreement providing for payments by a | ||
school district shall be an obligation of the school district | ||
payable from and secured by such lawfully available funds as | ||
may be made pursuant to applicable law. Notwithstanding the | ||
sources of funds pledged, any contract between the agency and | ||
its members with respect to an eligible project shall not | ||
constitute an indebtedness of such members within any statutory |
limitation.
| ||
(e) Nothing in this Act shall be construed to preclude a | ||
school district from appropriating and using taxes and other | ||
revenues received in any year to make payments due or to comply | ||
with covenants to be performed during that year under any | ||
contract or agreement for a term of years entered into as | ||
contemplated in this Act, subject to the provisions of | ||
applicable law.
| ||
(f) Any contract or agreement may include provisions for | ||
requirements purchases, restraints on resale or other | ||
dealings, exclusive dealing, pricing, territorial division, | ||
and other conduct or arrangements that do not have an | ||
anti-competitive effect.
Provided, however, that the | ||
production, interconnection, transmission, distribution, and | ||
sale at wholesale or retail of electric energy generated by the | ||
eligible project must be in accordance with all laws, | ||
regulations, and rules applicable to generators of | ||
electricity, alternative retail electric suppliers, municipal | ||
utilities, or electric cooperatives, as applicable, but | ||
further provided that this provision does not affect any | ||
exemption otherwise available under the Public Utilities Act. | ||
(g) Notwithstanding the provisions of any other law, in the | ||
making of a contract or agreement between an agency and a | ||
member, the director of the agency who represents such member | ||
must recuse himself or herself from participation in | ||
discussions or voting as director, but may participate and vote |
in his or her capacity as an officer of the governing body of | ||
such member, and such participation and voting shall not be a | ||
conflict of interest.
| ||
Section 97. Severability. The provisions of this Act are | ||
severable under Section 1.31 of the Statute on Statutes.
| ||
Section 999. Effective date. This Act takes effect upon | ||
becoming law.
|