Bill Text: IL HB3501 | 2019-2020 | 101st General Assembly | Enrolled


Bill Title: Amends the Public Officer Prohibited Activities Act. Provides that an elected or appointed official of a unit of local government may not hire or appoint himself or herself to a second position in the unit of local government if the second position is a salaried or hourly position. Allows the governing body of the unit of local government to hire or appoint an elected or appointed official to a second position in the unit of local government with a salary or hourly wages by ordinance or resolution if the ordinance or resolution states the salary or total compensation of an hourly position. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 12-4)

Status: (Enrolled) 2019-06-14 - Sent to the Governor [HB3501 Detail]

Download: Illinois-2019-HB3501-Enrolled.html



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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Property Assessed Clean Energy Act is
5amended by changing Sections 5, 10, 15, 20, 25, 30, and 35 and
6by adding Sections 42, 45, and 50 as follows:
7 (50 ILCS 50/5)
8 Sec. 5. Definitions. As used in this Act:
9 "Alternative energy improvement" means any fixture,
10product, system, equipment, device, material, or interacting
11group thereof intended the installation or upgrade of
12electrical wiring, outlets, or charging stations to charge a
13motor vehicle that is fully or partially powered by
14electricity, including, but not limited to, electrical wiring,
15outlets, or charging stations.
16 "Assessment" means a special assessment imposed by a
17governmental unit pursuant to an assessment contract.
18 "Assessment contract" means a voluntary written contract
19between the applicable governmental local unit of government
20(or a permitted assignee) and record owner governing the terms
21and conditions of financing and assessment under a program.
22 "Authority" means the Illinois Finance Authority.
23 "Capital provider" means any credit union, federally

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1insured depository institution, insurance company, trust
2company, or other entity approved by a governmental unit or its
3program administrator or program administrators that finances
4or refinances an energy project by purchasing PACE bonds issued
5by the governmental unit or the Authority for that purpose.
6"Capital provider" also means any special purpose vehicle that
7is directly or indirectly wholly owned by one or more of the
8entities listed in this definition or any bond underwriter.
9 "PACE area" means an area within the jurisdictional
10boundaries of a local unit of government created by an
11ordinance or resolution of the local unit of government to
12provide financing for energy projects under a property assessed
13clean energy program. A local unit of government may create
14more than one PACE area under the program, and PACE areas may
15be separate, overlapping, or coterminous.
16 "Energy efficiency improvement" means any fixture,
17product, system, equipment, device, material, or interacting
18group thereof devices, or materials intended to decrease energy
19consumption or enable promote a more efficient use of
20electricity, natural gas, propane, or other forms of energy on
21property, including, but not limited to, all of the following:
22 (1) insulation in walls, roofs, floors, foundations,
23 or heating and cooling distribution systems;
24 (2) energy efficient storm windows and doors,
25 multi-glazed windows and doors, heat-absorbing or
26 heat-reflective glazed and coated window and door systems,

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1 and additional glazing, reductions in glass area, and other
2 window and door systems system modifications that reduce
3 energy consumption;
4 (3) automated energy or water control systems;
5 (4) high efficiency heating, ventilating, or
6 air-conditioning and distribution systems system
7 modifications or replacements;
8 (5) caulking, weather-stripping, and air sealing;
9 (6) replacement or modification of lighting fixtures
10 to reduce the energy use of the lighting system;
11 (7) energy controls or recovery systems;
12 (8) day lighting systems;
13 (8.1) any energy efficiency project, as defined in
14 Section 825-65 of the Illinois Finance Authority Act; and
15 (9) any other fixture, product, system, installation
16 or modification of equipment, device, or material intended
17 devices, or materials approved as a utility or other
18 cost-savings measure as approved by the governmental unit
19 governing body.
20 "Energy project" means the acquisition, construction,
21installation, or modification of an alternative energy
22improvement, energy efficiency improvement, renewable energy
23improvement, resiliency improvement, or water use improvement,
24or the acquisition, installation, or improvement of a renewable
25energy system that is affixed to real a stabilized existing
26property (including new construction).

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1 "Governing body" means the legislative body, council,
2board, commission, trustees, or any other body by whatever name
3it is known having charge of the corporate affairs of a
4governmental unit county board or board of county commissioners
5of a county, the city council of a city, or the board of
6trustees of a village.
7 "Governmental Local unit of government" means any a county
8or municipality , city, or village.
9 "PACE area" means an area within the jurisdictional
10boundaries of a governmental unit created by an ordinance or
11resolution of the governmental unit to provide financing for
12energy projects under a property assessed clean energy program.
13A governmental unit may create more than one PACE area under
14the program and PACE areas may be separate, overlapping, or
15coterminous.
16 "PACE bond" means any bond, note, or other evidence of
17indebtedness representing an obligation to pay money,
18including refunding bonds, issued under or in accordance with
19Section 35.
20 "Permitted assignee" means (i) the Authority any body
21politic and corporate, (ii) any bond trustee, or (iii) any
22capital provider warehouse lender, or (iv) any other assignee
23of a governmental local unit of government designated by the
24governmental unit in an assessment contract.
25 "Person" means an individual, firm, partnership,
26association, corporation, limited liability company,

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1unincorporated joint venture, trust, or any other type of
2entity that is recognized by law and has the title to or
3interest in property. "Person" does not include a local unit of
4government or a homeowner's or condominium association, but
5does include other governmental entities that are not local
6units of government.
7 "Program administrator" means a for-profit entity or a
8not-for-profit not-for profit entity that will administer a
9program on behalf of or at the discretion of the governmental
10unit local unit of government. It or its affiliates,
11consultants, or advisors shall have done business as a program
12administrator or capital provider for a minimum of 18 months
13and shall be responsible for arranging capital for the
14acquisition of bonds issued by the local unit of government or
15the Authority to finance energy projects.
16 "Property" means any privately-owned commercial,
17industrial, non-residential agricultural, or multi-family (of
185 or more units) real property or any real property owned by a
19not-for-profit located within the governmental local unit of
20government, but does not include any real property owned by a
21governmental local unit of government or a homeowner's or
22condominium association.
23 "Property assessed clean energy program" or "program"
24means the program of a governmental unit to provide financing
25or refinancing for energy projects within PACE areas it has
26created under Section 10 and Section 15 a program as described

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1in Section 10.
2 "Record owner" means the titleholder or person who is the
3titleholder or owner of the beneficial interest in real
4property.
5 "Renewable energy improvement" means any fixture, product,
6system, equipment, device, material, or interacting group
7thereof on the property of the record owner that uses one or
8more renewable energy resources to generate electricity,
9including any renewable energy project, as defined in Section
10825-65 of the Illinois Finance Authority Act.
11 "Renewable energy resource" includes energy and its
12associated renewable energy credit or renewable energy credits
13from wind energy, solar thermal energy, geothermal energy,
14photovoltaic cells and panels, biodiesel, anaerobic digestion,
15and hydropower that does not involve new construction or
16significant expansion of hydropower dams. For purposes of this
17Act, landfill gas produced in the State is considered a
18renewable energy resource. The term "renewable energy
19resources" does not include the incineration or burning of any
20solid material.
21 "Renewable energy system" means a fixture, product,
22device, or interacting group of fixtures, products, or devices
23on the customer's side of the meter that use one or more
24renewable energy resources to generate electricity, and
25specifically includes any renewable energy project, as defined
26in Section 825-65 of the Illinois Finance Authority Act.

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1 "Resiliency improvement" means any fixture, product,
2system, equipment, device, material, or interacting group
3thereof intended to increase resilience or improve the
4durability of infrastructure, including but not limited to,
5seismic retrofits, flood mitigation, fire suppression, wind
6resistance, energy storage, microgrids, and backup power
7generation.
8 "Warehouse fund" means any fund or account established by a
9governmental unit, the Authority, or a capital provider local
10unit of government, body politic and corporate, or warehouse
11lender.
12 "Warehouse lender" means any financial institution
13participating in a PACE area that finances an energy project
14from lawfully available funds in anticipation of issuing bonds
15as described in Section 35.
16 "Water use improvement" means any resiliency improvement,
17fixture, product, system, equipment, device, material, or
18interacting group thereof intended to conserve for or serving
19any property that has the effect of conserving water resources
20or improve water quality on property, including, but not
21limited to, all of the following: through improved
22 (1) water management or efficiency systems; .
23 (2) water recycling;
24 (3) capturing, reusing, managing, and treating
25 stormwater;
26 (4) bioretention, trees, green roofs, porous

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1 pavements, or cisterns for maintaining or restoring
2 natural hydrology;
3 (5) replacing or otherwise abating or mitigating the
4 use of lead pipes in the supply of water; and
5 (6) any other resiliency improvement, fixture,
6 product, system, equipment, device, or material intended
7 as a utility or other cost-savings measure as approved by
8 the governmental unit.
9(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19;
10revised 9-28-18.)
11 (50 ILCS 50/10)
12 Sec. 10. Property assessed clean energy program; creation.
13 (a) Pursuant to the procedures provided in Section 15, a
14governmental a local unit of government may establish a
15property assessed clean energy program and, from time to time,
16create a PACE area or PACE areas under the program.
17 (b) Under a program, the governmental local unit of
18government may enter into an assessment contract with the
19record owner of property within a PACE area to finance or
20refinance one or more energy projects on the property. The
21assessment contract shall provide for the repayment of all or a
22portion of the cost of an energy project through assessments
23upon the property benefited. The amount of the financing or
24refinancing may include any and all of the following: the cost
25of materials and labor necessary for acquisition,

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1construction, installation, or modification of the energy
2project, permit fees, inspection fees, application and
3administrative fees, financing fees, reserves, capitalized
4interest, costs of billing the assessment bank fees, and all
5other fees, costs, and expenses that may be incurred by the
6record owner pursuant to the acquisition, construction,
7installation, or modification of the energy project, and the
8costs of issuance of PACE bonds on a specific or pro rata
9basis, as determined by the governmental local unit of
10government and may also include a prepayment premium.
11 (b-5) A governmental local unit of government may sell or
12assign, for consideration, any and all assessment contracts;
13the permitted assignee of the assessment contract shall have
14and possess the delegable same powers and rights at law or in
15equity as the applicable governmental local unit of government
16and its tax collector would have if the assessment contract had
17not been assigned with regard to (i) the precedence and
18priority of liens evidenced by the assessment contract, (ii)
19the accrual of interest, and (iii) the fees and expenses of
20collection. The permitted assignee shall have the right same
21rights to enforce such liens pursuant to subsection (a) of
22Section 30 as any private party holding a lien on real
23property, including, but not limited to, foreclosure. Costs and
24reasonable attorney's fees incurred by the permitted assignee
25as a result of any foreclosure action or other legal proceeding
26brought pursuant to this Act Section and directly related to

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1the proceeding shall be assessed in any such proceeding against
2each record owner subject to the proceedings. A governmental
3unit or the Authority may sell or assign assessment contracts
4without competitive bidding or the solicitation of requests for
5proposals or requests for qualifications Such costs and fees
6may be collected by the assignee at any time after demand for
7payment has been made by the permitted assignee.
8 (c) A program shall may be administered by either one or
9more than one program administrators or the governmental local
10unit, as determined by the governing body of government.
11(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
12 (50 ILCS 50/15)
13 Sec. 15. Program established.
14 (a) To establish a property assessed clean energy program,
15the governing body of a local unit of government shall adopt a
16resolution or ordinance that includes all of the following:
17 (1) a finding that the financing or refinancing of
18 energy projects is a valid public purpose;
19 (2) a statement of intent to facilitate access to
20 capital (which may be from one or more program
21 administrators or as otherwise permitted by this Act) to
22 provide funds for energy projects, which will be repaid by
23 assessments on the property benefited with the agreement of
24 the record owners;
25 (3) a description of the proposed arrangements for

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1 financing the program through the issuance of PACE bonds
2 under or in accordance with Section 35, which PACE bonds
3 may be purchased by one or more capital providers , which
4 may be through one or more program administrators;
5 (4) the types of energy projects that may be financed
6 or refinanced;
7 (5) a description of the territory within the PACE
8 area;
9 (6) a transcript of public comments if any
10 discretionary public hearing reference to a report on the
11 proposed program was previously held by the governmental
12 unit prior to the consideration of the resolution or
13 ordinance establishing the program; and as described in
14 Section 20;
15 (7) (blank); the time and place for a public hearing to
16 be held by the local unit of government if required for the
17 adoption of the proposed program by resolution or
18 ordinance;
19 (8) the report on the proposed program as described in
20 matters required by Section 20 to be included in the
21 report; for this purpose, the resolution or ordinance may
22 incorporate the report or an amended version thereof by
23 reference; and shall be available for public inspection.
24 (9) (blank). a description of which aspects of the
25 program may be amended without a new public hearing and
26 which aspects may be amended only after a new public

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1 hearing is held.
2 (b) A property assessed clean energy program may be amended
3in accordance with by resolution or ordinance of the governing
4body. Adoption of the resolution or ordinance establishing the
5program shall be preceded by a public hearing if required.
6(Source: P.A. 100-77, eff. 8-11-17; 100-863, eff. 8-14-18;
7100-980, eff. 1-1-19.)
8 (50 ILCS 50/20)
9 Sec. 20. Program Report. The report on the proposed program
10required under Section 15 shall include all of the following:
11 (1) a form of assessment contract between the
12 governmental local unit of government and record owner
13 governing the terms and conditions of financing and
14 assessment under the program; .
15 (2) identification of one or more officials an official
16 authorized to enter into an assessment contract on behalf
17 of the governmental local unit of government;
18 (3) (blank); a maximum aggregate annual dollar amount
19 for all financing to be provided by the applicable program
20 administrator under the program;
21 (4) an application process and eligibility
22 requirements for financing or refinancing energy projects
23 under the program;
24 (5) a method for determining interest rates on amounts
25 financed or refinanced under assessment contracts

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1 installments, repayment periods, and the maximum amount of
2 an assessment, if any;
3 (6) an explanation of the process for billing and
4 collecting how assessments will be made and collected;
5 (7) a plan to raise capital to finance improvements
6 under the program pursuant to the issuance sale of PACE
7 bonds under or in accordance with Section 35; , subject to
8 this Act or the Special Assessment Supplemental Bond and
9 Procedures Act, or alternatively, through the sale of bonds
10 by the Authority pursuant to subsection (d) of Section
11 825-65 of the Illinois Finance Authority Act;
12 (8) information regarding all of the following, to the
13 extent known, or procedures to determine the following in
14 the future:
15 (A) any revenue source or reserve fund or funds to
16 be used as security for PACE bonds described in
17 paragraph (7); and
18 (B) any application, administration, or other
19 program fees to be charged to record owners
20 participating in the program that will be used to
21 finance and reimburse all or a portion of costs
22 incurred by the governmental local unit of government
23 as a result of its the program;
24 (9) a requirement that the term of an assessment not
25 exceed the useful life of the energy project financed or
26 refinanced under an assessment contract; provided that an

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1 assessment contract financing or refinancing multiple
2 energy projects with varying lengths of useful life may
3 have a term that is calculated in accordance with the
4 principles established by the program report paid for by
5 the assessment; provided that the local unit of government
6 may allow projects that consist of multiple improvements
7 with varying lengths of useful life to have a term that is
8 no greater than the improvement with the longest useful
9 life;
10 (10) a requirement for an appropriate ratio of the
11 amount of the assessment to the greater of any of the
12 following: assessed value of the property or market value
13 of the property as determined by a recent appraisal no
14 older than 12 months;
15 (A) the value of the property as determined by the
16 office of the county assessor; or
17 (B) the value of the property as determined by an
18 appraisal conducted by a licensed appraiser;
19 (11) a requirement that the record owner of property
20 subject to a mortgage obtain written consent from the
21 mortgage holder before participating in the program;
22 (12) provisions for marketing and participant
23 education; and
24 (13) (blank); provisions for an adequate debt service
25 reserve fund, if any; and
26 (14) quality assurance and antifraud measures.

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1(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
2 (50 ILCS 50/25)
3 Sec. 25. Assessment contracts Contracts with record owners
4of property.
5 (a) A After creation of a program and PACE area, a record
6owner of property within the PACE area may apply to with the
7governmental local unit of government or its program
8administrator or program administrators for funding to finance
9or refinance an energy project under the governmental unit's
10program.
11 (b) A governmental local unit of government may impose an
12assessment under a property assessed clean energy program only
13pursuant to the terms of a recorded assessment contract with
14the record owner of the property to be assessed.
15 (c) Before entering into an assessment contract with a
16record owner under a program, the governmental unit or its
17program administrator or program administrators local unit of
18government shall verify that the applicable property is
19entirely within the PACE area and receive evidence of all of
20the following:
21 (1) (blank); that the property is within the PACE area;
22 (2) that there are no delinquent taxes, special
23 assessments, or water or sewer charges on the property;
24 (3) that there are no delinquent assessments on the
25 property under a property assessed clean energy program;

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1 (4) whether there are any no involuntary liens on the
2 property, including, but not limited to, construction or
3 mechanics liens, lis pendens or judgments against the
4 record owner, environmental proceedings, or eminent domain
5 proceedings;
6 (5) that no notices of default or other evidence of
7 property-based debt delinquency have been recorded and not
8 cured;
9 (6) that the record owner is current on all mortgage
10 debt on the property, the record owner has not filed for
11 bankruptcy in the last 2 years, and the property is not an
12 asset in to a current bankruptcy proceeding; .
13 (7) that all work requiring a license under any
14 applicable law to acquire, construct, install, or modify an
15 energy project make a qualifying improvement shall be
16 performed by a licensed registered contractor that has
17 agreed to adhere to a set of terms and conditions through a
18 process established by the governmental local unit or its
19 program administrator or program administrators; of
20 government.
21 (8) that the contractor or contractors to be used have
22 signed a written acknowledgement that the governmental
23 unit or its program administrator or program
24 administrators local unit of government will not authorize
25 final payment to the contractor or contractors until the
26 governmental local unit of government has received written

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1 confirmation from the record owner that the energy project
2 improvement was properly acquired, constructed, installed,
3 or modified and is operating as intended; provided,
4 however, that the contractor or contractors retain retains
5 all legal rights and remedies in the event there is a
6 disagreement with the record owner;
7 (9) that the aggregate amount financed or refinanced
8 under one or more amount of the assessment contracts does
9 not exceed 25% in relation to the greater of any of the
10 following:
11 (A) the value of the property as determined by the
12 office of the county assessor; or
13 (B) the value of the property as determined by an
14 appraisal conducted by a licensed appraiser the
15 assessed value of the property or the appraised value
16 of the property, as determined by a licensed appraiser,
17 does not exceed 25%; and
18 (10) a requirement that an evaluation assessment of the
19 existing water or energy use and a modeling of expected
20 monetary savings have been conducted for any proposed
21 energy efficiency improvement, renewable energy
22 improvement, or water use improvement, unless the water use
23 improvement is undertaken to improve water quality
24 project.
25 (d) Before At least 30 days before entering into an
26assessment contract with the governmental local unit of

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1government, the record owner shall provide to the mortgage
2holders or loan servicers of any existing mortgages encumbering
3or otherwise secured by the property a notice of the record
4owner's intent to enter into an assessment contract with the
5governmental local unit of government, together with the
6maximum principal amount to be financed or refinanced and the
7maximum annual assessment necessary to repay that amount, along
8with an additional a request that the mortgage holders or loan
9servicers of any existing mortgages consent to the record owner
10subjecting the property to the program. The governmental unit
11shall be provided with a A verified copy or other proof of
12those notices and the written consent of the existing mortgage
13holder for the record owner to enter into the assessment
14contract which acknowledges and acknowledging that (i) the
15existing mortgage or mortgages for which the consent was
16received will be subordinate to the financing and assessment
17contract and the lien created thereby and (ii) the governmental
18agreement and that the local unit of government or its
19permitted assignee can foreclose the property if the
20assessments are assessment is not paid shall be provided to the
21local unit of government.
22 (e) (Blank). A provision in any agreement between a local
23unit of government and a public or private power or energy
24provider or other utility provider is not enforceable to limit
25or prohibit any local unit of government from exercising its
26authority under this Section.

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1 (f) If the The record owner has signed a certification that
2the governmental local unit of government has complied with the
3provisions of this Section, then this which shall be conclusive
4evidence as to compliance with these provisions, but shall not
5relieve any contractor, or the governmental local unit of
6government, from any potential liability.
7 (g) (Blank). This Section is additional and supplemental to
8county and municipal home rule authority and not in derogation
9of such authority or limitation upon such authority.
10 (h) The imposition of any assessment pursuant to this Act
11shall be exempt from any other statutory procedures or
12requirements that condition the imposition of special
13assessments or other taxes against a property, except as
14specifically set forth in this Act.
15(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
16 (50 ILCS 50/30)
17 Sec. 30. Assessments constitute a lien; billing and
18collecting.
19 (a) An assessment contract shall be recorded with the
20county in which the PACE area is located. An assessment imposed
21under a property assessed clean energy program pursuant to an
22assessment contract, including any interest on the assessment
23and any penalty, shall, upon recording of the assessment
24contract in the county in which the PACE area is located,
25constitute a lien against the property on which the assessment

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1is imposed until the assessment, including any interest or
2penalty, is paid in full. The lien of the assessment contract
3shall run with the property until the assessment is paid in
4full and a satisfaction or release for the same has been
5recorded by the governmental unit or its program administrator
6or program administrators with the local unit of government and
7shall have the same lien priority and status as other property
8tax and special assessment liens as provided in the Property
9Tax Code. The governmental local unit of government (or any
10permitted assignee) shall have all rights and remedies in the
11case of default or delinquency in the payment of an assessment
12as it does with respect to delinquent property taxes and other
13delinquent special assessments as set forth in Article 9 of the
14Illinois Municipal Code, including the lien, sale, and
15foreclosure remedies described in that Article. When the
16assessment, including any interest and penalty, is paid in
17full, the lien shall be removed and released from the property.
18 (a-5) The assessment shall be imposed by the governmental
19local unit of government against each lot, block, tract, track
20and parcel of land set forth in within the assessment contract
21PACE area to be assessed in accordance with an assessment roll
22setting forth: (i) a description of the method of spreading the
23assessment; (ii) a list of lots, blocks, tracts and parcels of
24land in the PACE area; and (iii) the amount assessed on each
25parcel. The assessment roll shall be filed with the county
26clerk of the county in which the PACE area is located for use

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1in establishing the lien and collecting the assessment.
2 (b) (Blank). Installments of assessments due under a
3program may be included in each tax bill issued under the
4Property Tax Code and may be collected at the same time and in
5the same manner as taxes collected under the Property Tax Code.
6Alternatively, installments may be billed and collected as
7provided in a special assessment ordinance of general
8applicability adopted by the local unit of government pursuant
9to State law or local charter. In no event will partial payment
10of an assessment be allowed.
11 (b-5) Assessments created under this Act may be billed and
12collected as follows:
13 (1) A county which has established a program may
14 include assessments in the regular property tax bills of
15 the county. The county collector of the county in which a
16 PACE area is located may bill and collect assessments with
17 the regular property tax bills of the county if requested
18 by a municipality within its jurisdiction; no municipality
19 is required to make such a request of its county collector.
20 If the county collector agrees to bill and collect
21 assessments with the regular property tax bills of the
22 county, then the applicable assessment contract shall be
23 filed with the county collector and the annual amount due
24 as set forth in an assessment contract shall become due in
25 installments at the times property taxes shall become due
26 in accordance with each regular property tax bill payable

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1 during the year in which such assessment comes due;
2 (2) If the county collector does not agree to bill and
3 collect assessments with the regular property tax bills of
4 the county or the governmental unit in which the PACE area
5 is located declines to request the county collector to do
6 so, then the governmental unit shall bill and collect the
7 assessments, either directly or as permitted in paragraph
8 (3) of this subsection, and the annual amount due as set
9 forth in an assessment contract shall become due in
10 installments on or about the times property taxes would
11 otherwise become due in accordance with each regular
12 property tax bill payable during the year in which such
13 assessment comes due; or
14 (3) If a governmental unit is billing and collecting
15 assessments pursuant to paragraph (2) of this subsection,
16 assessment installments may be billed and collected by the
17 governmental unit's program administrator or program
18 administrators or another third party.
19 The assessment installments for assessments billed as
20provided for under any paragraph of this subsection shall be
21payable at the times and in the manner as set forth in the
22applicable bill.
23 (c) If a governmental unit, a program administrator, or
24another third party is billing and collecting assessments
25pursuant to subsection (b-5), and the applicable assessment
26becomes delinquent during any year, the applicable collector

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1shall, on or before the date in such year required by the
2county in which the PACE area is located, make a report in
3writing to the general office of the county in which the
4applicable property subject to the assessment is situated and
5authorized by the general revenue laws of this State to apply
6for judgment and sell lands for taxes due the county and the
7State, of the assessments or installments thereof the
8applicable collector has billed for and not received as
9required under the applicable bill, including any interest or
10penalties that may be due as set forth in the applicable
11assessment contract. This report shall be certified by the
12applicable collector and shall include statements that (i) the
13report contains true and correct list of delinquent assessments
14that the collector has not received as required by the
15applicable bill and (ii) an itemization of the amount of the
16delinquent assessment, including interest and penalties, if
17applicable. The report of the applicable collector, when so
18made, shall be prima facie evidence that all requirements of
19the law in relation to making the report have been complied
20with and that the assessments or the matured installments
21thereof, and the interest thereon, and the interest accrued on
22installments not yet matured, mentioned in the report, are due
23and unpaid. Upon proper filing of such report, at the direction
24of the governmental unit or its permitted assignee, the county
25collector shall enforce the collection of the assessments in
26the manner provided by law.

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1 (d) Payment received by mail and postmarked on or before
2the required due date is not delinquent. From and after the due
3date of any installment of an assessment, an additional rate of
4interest of 1 1/2% per month may be imposed with respect to the
5delinquent amount of such installment, which shall be payable
6to the applicable governmental unit or other permitted assignee
7as set forth in the applicable bill.
8(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19;
9revised 9-28-18.)
10 (50 ILCS 50/35)
11 Sec. 35. Issuance of PACE bonds Bonds.
12 (a) Except as provided for in subsection (k), a
13governmental unit shall A local unit of government may issue
14PACE bonds under this Act or the Special Assessment
15Supplemental Bond and Procedures Act, or the Authority shall
16may issue PACE bonds in accordance with this Act and pursuant
17to under subsection (d) of Section 825-65 of the Illinois
18Finance Authority Act upon assignment of the assessment
19contracts securing such bonds by the local unit of government
20to the Authority, in either case to finance or refinance energy
21projects under a property assessed clean energy program.
22Interim financing prior to the issuance of bonds authorized by
23this Section may be provided only by a warehouse fund, except
24that warehouse funds established by a warehouse lender may only
25hold assessment contracts for 36 months or less.

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1 (b) PACE bonds issued under this Act or in accordance with
2this Act and pursuant to subsection (d) of Section 825-65 of
3the Illinois Finance Authority Act: Bonds issued under
4subsection (a) shall
5 (1) shall not be general obligations of the
6 governmental local unit of government or the Authority, as
7 applicable, but shall be secured by the following as
8 provided by the governing body in the resolution or
9 ordinance approving the bonds:
10 (A) (1) payments under one or more assessment
11 contracts of assessments on benefited property or
12 properties within the PACE area or PACE areas
13 specified; and
14 (B) if applicable, municipal bond insurance,
15 letters of credit, or public or private guarantees or
16 sureties; and
17 (C) (2) if applicable, revenue sources or reserves
18 established by the governmental local unit of
19 government or the Authority from bond proceeds or other
20 lawfully available funds; .
21 (2) may be secured on a parity basis with PACE bonds of
22 another series or subseries issued by the governmental unit
23 or the Authority pursuant to the terms of a master
24 indenture entered into as authorized by an ordinance or
25 resolution adopted by the governing body or the Authority,
26 as applicable;

HB3501 Enrolled- 26 -LRB101 09037 AWJ 54130 b
1 (3) may bear interest at any rate or rates not to
2 exceed such rate or rates as the governing body or the
3 Authority shall determine by ordinance or resolution;
4 (4) may pay interest upon the date or dates described
5 in such PACE bonds;
6 (5) shall have a maturity no more than 40 years from
7 the date of issuance;
8 (6) may be subject to redemption with or without
9 premium upon such terms and provisions as may be provided
10 under the terms of a master indenture entered into as
11 authorized by an ordinance or resolution adopted by the
12 governing body or the Authority, as applicable, including,
13 without limitation, terms as to the order of redemption
14 (numerical, pro rata, by series, subseries, or otherwise)
15 and as to the timing thereof;
16 (7) shall be negotiable instruments under Illinois law
17 and be subject to the Registered Bond Act; and
18 (8) may be payable either serially or at term, or any
19 combination thereof, in such order of preference,
20 priority, lien position, or rank (including, without
21 limitation, numerical, pro rata, by series, subseries, or
22 otherwise) as the governing body or Authority may provide.
23 (c) A pledge of assessments, funds, or contractual rights
24made by a governmental unit or the Authority governing body in
25connection with the issuance of PACE bonds by a local unit of
26government under this Act or in accordance with this Act and

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1pursuant to Section 825-65 of the Illinois Finance Authority
2Act constitutes a statutory lien on the assessments, funds, or
3contractual rights so pledged in favor of the person or persons
4to whom the pledge is given, without further action taken by a
5governmental unit or the Authority, as applicable by the
6governing body. The statutory lien is valid and binding against
7all other persons, with or without notice.
8 (d) (Blank). Bonds of one series issued under this Act may
9be secured on a parity with bonds of another series issued by
10the local unit of government or the Authority pursuant to the
11terms of a master indenture or master resolution entered into
12or adopted by the governing body of the local unit of
13government or the Authority.
14 (d-5) The State pledges to and agrees with the holders of
15any PACE bonds issued under this Act or in accordance with the
16Act and pursuant to Section 825-65 of the Illinois Finance
17Authority Act that the State will not limit or alter the rights
18and powers vested in governmental units by this Act or in the
19Authority in accordance with this Act and pursuant to Section
20825-65 of the Illinois Finance Authority Act so as to impair
21the terms of any contract made by a governmental unit or by the
22Authority with those bondholders or in any way to impair the
23rights or remedies of those bondholders until the PACE bonds,
24together with the interest thereon, and all costs and expenses
25in connection with any actions or proceedings by or on behalf
26of those bondholders are fully met and discharged.

HB3501 Enrolled- 28 -LRB101 09037 AWJ 54130 b
1 (e) (Blank). Bonds issued under this Act are subject to the
2Bond Authorization Act and the Registered Bond Act.
3 (f) PACE bonds Bonds issued under this Act or in accordance
4with this Act and pursuant to Section 825-65 of the Illinois
5Finance Authority Act further essential public and
6governmental purposes, including, but not limited to, reduced
7energy costs and , reduced greenhouse gas emissions, enhanced
8water quality and conservation, economic stimulation and
9development, improved property resiliency and valuation, and
10increased employment.
11 (g) A capital provider program administrator can assign its
12rights to purchase PACE the bonds issued by the governmental
13unit or the Authority to a designated transferee to a third
14party.
15 (h) A law firm shall be retained to give a written bond
16opinion in connection with any PACE bond issued under this Act
17or in accordance with this Act and pursuant to Section 825-65
18of the Illinois Finance Authority Act in form and substance as
19requested by the issuer of the PACE bonds or the capital
20provider.
21 (i) PACE bonds Bonds issued by the Authority in accordance
22with under this Act and pursuant to subsection (d) of Section
23825-65 of the Illinois Finance Authority Act shall not be
24entitled to the benefits of Section 825-75 of the Illinois
25Finance Authority Act.
26 (j) PACE bonds issued by a governmental unit may otherwise

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1have any attributes permitted to bonds under the Local
2Government Debt Reform Act, as the governing body may provide.
3 (k) Interim financing prior to the issuance of PACE bonds
4authorized by this Section may be provided only by a warehouse
5fund, except that warehouse funds established by capital
6providers shall only interim finance energy projects secured by
7one or more assessment contracts for 36 months or less from the
8date of recording of the applicable assessment contract.
9(Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19.)
10 (50 ILCS 50/42 new)
11 Sec. 42. Supplemental powers.
12 (a) The provisions of this Act are intended to be
13supplemental and in addition to all other powers or authorities
14granted to any governmental unit, shall be construed liberally,
15and shall not be construed as a limitation of any power or
16authority otherwise granted.
17 (b) A governmental unit may use the provisions of this Act
18by referencing this Act in the resolution or ordinance
19described in Section 15.
20 (50 ILCS 50/45 new)
21 Sec. 45. Recital. PACE bonds that are issued under this Act
22or in accordance with this Act and pursuant to Section 825-65
23of the Illinois Finance Authority Act may contain a recital to
24that effect and any such recital shall be conclusive as against

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1the issuer thereof and any other person as to the validity of
2the PACE bonds and as to their compliance with the provisions
3of this Act and, as applicable, the provisions of Section
4825-65 of the Illinois Finance Authority Act.
5 (50 ILCS 50/50 new)
6 Sec. 50. Validation. All actions taken by the Authority or
7any governmental unit under this Act prior to the effective
8date of this amendatory Act of the 101st General Assembly,
9including, without limitation, creation of a property assessed
10clean energy program under Section 10 and Section 15,
11preparation and approval of a report on the proposed program
12under Section 20, entering into assessment contracts under
13Section 25, and issuance of bonds, notes, and other evidences
14of indebtedness under Section 35 shall be unaffected by the
15enactment of this amendatory Act of the 101st General Assembly
16and shall continue to be legal, valid, and in full force and
17effect, notwithstanding any lack of compliance with the
18requirements of this amendatory Act of the 101st General
19Assembly.
20 (50 ILCS 50/40 rep.)
21 Section 10. The Property Assessed Clean Energy Act is
22amended by repealing Section 40.
23 Section 99. Effective date. This Act takes effect upon
24becoming law.
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