Bill Text: IL HB5126 | 2011-2012 | 97th General Assembly | Introduced

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB5126 Detail]

Download: Illinois-2011-HB5126-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB5126 Introduced , by Rep. Jim Watson SYNOPSIS AS INTRODUCED:
New Act
735 ILCS 30/15-5-47 new
Creates the Illinois Rural Water Authority Act. Provides that the Board of the Illinois Rural Water Authority shall consist of 9 members appointed by the Governor. Sets forth the terms of the Board members. Sets forth the powers and duties of the Authority. Provides that the Authority may issue revenue bonds to develop, construct, acquire, or improve facilities for the development, transportation, and distribution of water and sewage. Provides that the Authority has the power of eminent domain and the power to acquire property. Amends the Eminent Domain Act to make conforming changes.
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FISCAL NOTE ACT MAY APPLY STATE DEBT IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Rural Water Authority Act.
Section 5. Findings and purpose. The General Assembly finds
that many units of local government, non-profit corporations,
public trusts, cooperative associations, and other similar
organizations have a common interest in the economic
development of the State and in the protection of the health
and welfare of the citizens of the State through the
development, transportation, and distribution of water in
rural areas of the State and through the provision of adequate
sewage treatment and disposal facilities in rural areas of the
State.
The purpose of this Act is to promote the economic
development of the State and to provide for the protection of
the health and welfare of citizens of the State through the
development, transportation, and distribution of water in
rural areas of the State and through the provision of adequate
sewage treatment and disposal facilities in rural areas of the
State.

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Section 10. Definitions. As used in this Act, the following
terms shall have the following meanings, unless a different
meaning clearly appears from the context:
"Authority" means the Illinois Rural Water Authority
created by this Act.
"Board" means the Illinois Rural Water Authority Board of
Directors.
"Costs incurred in connection with the development,
construction, acquisition, or improvement of a project" means
the following: the cost of purchase and construction of all
lands and improvements in connection therewith and equipment
and other property, rights, easements, and franchises which are
deemed necessary for such construction; financing charges;
interest costs with respect to bonds, notes, and other
evidences of indebtedness of the Authority before and during
construction and for a period of 6 months thereafter;
engineering and legal expenses; the costs of plans,
specifications, surveys, and estimates of costs and other
expenses necessary or incident to determining the feasibility
or practicability of any project; and any other expenses as may
be necessary or incident to the financing, insuring,
acquisition, and construction of a specific project and the
placing of the same in operation.
"Lease agreement" shall mean an agreement whereby a project
acquired by the Authority by purchase, gift, or lease is leased
to any member upon terms providing for lease rental payments at

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

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"Local government project" means a project or other
undertaking that is authorized or required by law to be
acquired, constructed, reconstructed, equipped, improved,
rehabilitated, replaced, maintained, or otherwise undertaken
in any manner by a unit of local government.
"Local government security" means a bond, note, or other
evidence of indebtedness that a unit of local government is
legally authorized to issue for the purpose of financing a
project or to issue for any other lawful public purpose under
any provision of the Constitution or laws of the State, whether
the obligation is payable from taxes or revenues, rates,
charges, assessments, appropriations, grants, or any other
lawful source or combination thereof, and specifically
includes, without limitation, obligations under any lease or
lease purchase agreement lawfully entered into by the unit of
local government for the acquisition or use of facilities or
equipment.
"Person" means any unit of local government, natural
person, firm, partnership, corporation, both domestic and
foreign, company, association, or joint stock association and
includes any trustee, receiver, assignee, or personal
representative thereof.
"Project" means facilities for the development,
transportation, and distribution of water and for the
transportation, treatment, and disposal of sewage, including
improvements or extensions thereof. Any project may include

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land acquisition, site improvements, sewage treatment and
disposal facilities, water lines, pipes, pumps, meter
stations, water towers, storage tanks, or any other
appurtenances, as applicable.
"Revenue bond" means any bond issued by the Authority the
principal and interest of which is payable solely from revenues
or income derived from any project or activity of the
Authority.
"Rural community or system" means any unit of local
government with a population of less than 10,000 or any
non-profit corporation, public trust, cooperative association,
or similar organization that represents or serves one or more
areas each with a population of less than 10,000.
"State" means the State of Illinois.
"Unit of local government" means (i) a unit of local
government, as defined in Section 1 of Article VII of the
Illinois Constitution and (ii) a local public entity, as that
term is defined in Section 1-206 of the Local Governmental and
Governmental Employees Tort Immunity Act.
Section 15. Illinois Rural Water Authority.
(a) There is hereby created a political subdivision, body
politic, and municipal corporation named the Illinois Rural
Water Authority. The territory of the Authority is coterminous
with the boundaries of the State. The territory of the
Authority shall be divided into 8 districts. Each district is

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composed of certain counties, and any navigable waters and air
space located therein, described as follows:
District 1 consists of the counties of Bureau, Carroll,
Henry, JoDaviess, Lee, Ogle, Rock Island, Stephenson,
Whiteside, and Winnebago.
District 2 consists of the counties of Boone, Cook,
DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and
Will.
District 3 consists of the counties of Adams, Fulton,
Hancock, Henderson, Knox, Mason, McDonough, Mercer,
Peoria, Schuyler, Stark, Tazewell, and Warren.
District 4 consists of the counties of Iroquois,
Kankakee, LaSalle, Livingston, Marshall, McLean, Putnam,
and Woodford.
District 5 consists of the counties of Brown, Cass,
Calhoun, Christian, DeWitt, Greene, Jersey, Logan, Macon,
Macoupin, Menard, Montgomery, Morgan, Pike, Sangamon, and
Scott.
District 6 consists of the counties of Champaign,
Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Ford,
Jasper, Moultrie, Platt, Shelby, and Vermilion.
District 7 consists of the counties of Bond, Clay,
Clinton, Edwards, Effingham, Fayette, Jefferson, Lawrence,
Madison, Marion, Monroe, Perry, Randolph, Richland, St.
Clair, Wabash, Washington, and Wayne.
District 8 consists of the counties of Alexander,

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Franklin, Gallatin, Hamilton, Hardin, Jackson, Johnson,
Massac, Pope, Pulaski, Saline, Union, White, and
Williamson.
(b) The governing and administrative powers of the
Authority shall be vested in a board of directors consisting of
9 members. The Governor shall appoint one director from each of
the districts described in subsection (a) and one additional
director from the State at-large. The directors must be from a
rural community or system. Of the initial directors, 5
directors shall serve for a term of 3 years, and 4 directors
shall serve for a term of 6 years, as determined by lot.
Thereafter, all terms shall be for 6 years. Vacancies shall be
filled for the remainder of the term in accordance with the
initial appointment.
(c) The Governor may remove any director in case of
incompetency, neglect of duty, or malfeasance in office.
(d) Directors shall not be entitled to compensation for
their services as Board members but may be reimbursed for all
necessary expenses incurred in connection with the performance
of their duties as directors.
(e) The Board shall appoint from its members a chairperson,
secretary, and treasurer.
(f) The Board shall appoint an executive director who shall
have a background in the development of sewage treatment and
disposal facilities and water facilities. The executive
director shall hold office at the discretion of the Board. The

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executive director shall be the chief administrative and
operational officer of the Authority, shall direct and
supervise the Authority's administrative affairs and general
management, shall perform any other duties as may be prescribed
from time to time by the Board, and shall receive compensation
as fixed by the Board. The executive director shall attend all
meetings of the Authority. However, no action of the Authority
shall be invalid on account of the absence of the executive
director from a meeting. The Board may engage the services of
any other agents and employees, including attorneys,
appraisers, engineers, accountants, credit analysts, and other
consultants, as the Board may deem advisable and may prescribe
their duties and fix their compensation.
Section 20. Quorum. All official acts of the Authority
require the approval of at least a majority of a quorum of the
Board. A majority of the Board shall constitute a quorum for
the transaction of business at any meeting of the Board. It is
the duty of the Authority to promote the economic development
of the State and to protect the health and welfare of the
citizens of the State through the development, transportation,
and distribution of water in rural areas of the State and
through the provision of adequate sewage treatment and disposal
facilities in rural areas of the State. The Authority shall use
the powers conferred upon it under this Act to assist in the
development, construction, and acquisition of those water and

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sewage projects.
Section 25. Powers.
(a) The Authority possesses all the powers of a body
corporate necessary and convenient to accomplish the purposes
of this Act, including, without any intended limitation upon
the general powers conferred by this Act, the following:
(1) to enter into loans, contracts, agreements, and
mortgages in any matter connected with any of its corporate
purposes and to invest its funds;
(2) to sue and be sued;
(3) to employ agents and employees necessary to carry
out its purposes;
(4) to have and use a common seal and to alter the same
at its discretion;
(5) to adopt all needful ordinances, resolutions,
bylaws, rules, and regulations for the conduct of its
business and affairs and for the management and use of the
projects developed, constructed, acquired, and improved in
furtherance of its purposes;
(6) to designate the fiscal year for the Authority;
(7) to accept and expend appropriations;
(8) to have and exercise all powers and be subject to
all duties usually incident to boards of directors of
corporations;
(9) to acquire, own, lease, sell, or otherwise dispose

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of interests in and to real property and improvements
situated thereon and in personal property necessary to
fulfill the purposes of the Authority; and
(10) to engage in any activity or operation which is
incidental to and in furtherance of efficient operation to
accomplish the Authority's purposes.
(b) If any of the powers set forth in this Act are
exercised within the jurisdictional limits of any
municipality, all ordinances of the municipality shall remain
in full force and effect and shall control.
Section 30. Revenue bonds. The Authority shall have the
continuing power to issue bonds, notes, or other evidences of
indebtedness for the purpose of developing, constructing,
acquiring, or improving projects. With respect to any local
government project, the Authority is authorized to purchase
from time to time pursuant to negotiated sale or to otherwise
acquire from time to time any local government security upon
terms and conditions as the Authority may prescribe in
connection therewith. For the purpose of evidencing the
obligations of the Authority to repay any money borrowed for
any project, the Authority may, pursuant to resolution, from
time to time issue and dispose of its interest bearing revenue
bonds, notes, or other evidences of indebtedness and may also
from time to time issue and dispose of those bonds, notes, or
other evidences of indebtedness to refund, at maturity, at a

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redemption date or in advance of either, any bonds, notes, or
other evidences of indebtedness pursuant to redemption
provisions or at any time before maturity. All bonds, notes, or
other evidences of indebtedness shall be payable solely and
only from the revenues or income to be derived from loans made
with respect to projects, from the leasing or sale of the
projects, or from any other funds available to the Authority
for those purposes. The bonds, notes, or other evidences of
indebtedness may bear any date or dates, may mature at any time
or times not exceeding 40 years from their respective dates,
may bear interest at any rate or rates payable annually,
semiannually, quarterly, or monthly, may be in any form, may
carry any registration privileges, may be executed in any
manner, may be payable at any place or places, may be made
subject to redemption in any manner and upon any terms, with or
without premium as is stated on the face thereof, may be
authenticated in any manner, and may contain any terms and
covenants as may be provided by resolution of the Board.
The holder or holders of any bonds, notes, or other
evidences of indebtedness issued by the Authority may bring
suits at law or proceedings in equity to: (i) compel the
performance and observance by any person or by the Authority or
any of its agents or employees of any contract or covenant made
with the holders of the bonds, notes, or other evidences of
indebtedness; (ii) compel the person or the Authority and any
of its agents or employees to perform any duties required to be

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performed for the benefit of the holders of the bonds, notes,
or other evidences of indebtedness by the provision of the
resolution authorizing their issuance; and (iii) enjoin the
person or the Authority and any of its agents or employees from
taking any action in conflict with the contract or covenant.
If the Authority fails to pay the principal of, premium, if
any, or interest on any of its bonds as the same become due, a
civil action to compel payment may be instituted in the
appropriate circuit court by the holder or holders of the bonds
on which the default of payment exists or by an indenture
trustee acting on behalf of the holders. Delivery of a summons
and a copy of the complaint to the chairperson of the Board
shall constitute sufficient service to give the circuit court
jurisdiction over the subject matter of the suit and
jurisdiction over the Authority and its officers named as
defendants for the purpose of compelling payment.
Notwithstanding the form and tenor of any bonds, notes, or
other evidences of indebtedness and in the absence of any
express recital on the face thereof that it is nonnegotiable,
all bonds, notes, and other evidences of indebtedness shall be
negotiable instruments. Pending the preparation and execution
of any bonds, notes, or other evidences of indebtedness,
temporary bonds, notes, or evidences of indebtedness may be
issued as provided by resolution of the Board.
To secure the payment of any or all of such bonds, notes,
or other evidences of indebtedness, the revenues to be received

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by the Authority from a lease agreement or loan agreement shall
be pledged, and, for the purpose of setting forth the covenants
and undertakings of the Authority in connection with the
issuance thereof and the issuance of any additional bonds,
notes, or other evidences of indebtedness payable from the
revenues, income, or other funds to be derived from projects,
the Authority may execute and deliver a mortgage or trust
agreement. A remedy for any breach or default of the terms of
any such mortgage or trust agreement by the Authority may be by
mandamus proceedings in the appropriate circuit court to compel
the performance and compliance therewith, but the trust
agreement may prescribe by whom or on whose behalf an action
may be instituted.
Bonds or notes shall be secured as provided in the
authorizing resolution of the Board which may, notwithstanding
any other provision of this Act, include in addition to any
other security a specific pledge or assignment of and lien on
or security interest in any or all revenues or money of the
Authority from whatever source which may by law be used for
debt service purposes and a specific pledge or assignment of
and lien on or security interest in any funds or accounts
established or provided for by resolution of the Board
authorizing the issuance of the bonds or notes and, with
respect to any local government project, may include without
limitation a pledge of any local government securities,
including any payments thereon.

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The State pledges to and agrees with the holders of the
bonds and notes of the Authority issued pursuant to this
Section that the State will not limit or alter the rights and
powers vested in the Authority by this Act so as to impair the
terms of any contract made by the Authority with the holders or
in any way impair the rights and remedies of those holders
until the bonds and notes, together with interest thereon, with
interest on any unpaid installments of interest, and all costs
and expenses in connection with any action or proceedings by or
on behalf of the holders, are fully met and discharged. The
Authority is authorized to include this pledge and agreement of
the State in any contract with the holders of bonds or notes
issued under this Section.
Section 35. Issuance and sale of local government
securities. Any unit of local government which is authorized to
issue, sell, and deliver its local government securities under
any provision of the Constitution or laws of the State may
issue, sell, and deliver local government securities to the
Authority as provided by this Act, provided that and
notwithstanding any other provision of law to the contrary, any
unit of local government may issue and sell any local
government security at any interest rate, which rate or rates
may be established by an index or formula which may be
implemented by persons appointed or retained therefor, payable
at any time or times and at any price or prices to which the

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unit of local government and the Authority may agree. Any unit
of local government may pay any amount charged by the
Authority. Any unit of local government may pay out of the
proceeds of its local government securities or out of any other
moneys or funds available to it for such purposes any costs,
fees, interest deemed necessary, premiums, or revenues
incurred or required for any financing or refinancing,
including without limitation any fees charged by the Authority
and its share, as determined by the Authority, of any costs,
fees, interest deemed necessary, premiums, or revenues
incurred or required pursuant to this Act. All local government
securities purchased by the Authority pursuant to this Act
shall upon delivery to the Authority be accompanied by an
approving opinion of bond counsel as to the validity of those
securities. The Authority shall have discretion to purchase or
otherwise acquire those local government securities as it shall
deem to be in the best interest of its financing program for
all units of local government taken as a whole.
Section 40. Pledge of local government securities.
(a) Any unit of local government that receives funds which
are at any time in the custody of the State Treasurer, the
State Comptroller, or the Department of Revenue may, by
appropriate proceedings, pledge to the Authority or any entity
acting on behalf of the Authority (including, without
limitation, any trustee), any or all of those receipts to the

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extent that the receipts are necessary to provide revenues to
pay the principal of, premium, if any, and interest on, and
other fees related to, or to secure, any of the local
government securities of the unit of local government which
have been sold or delivered to the Authority or its designee or
to pay lease rental payments to be made by the unit of local
government to the extent that such lease rental payments secure
the payment of the principal of, premium, if any, and interest
on, and other fees related to, any local government securities
which have been sold or delivered to the Authority or its
designee. Any pledge of such receipts (or any portion thereof)
shall constitute a first and prior lien thereon and shall be
binding from the time the pledge is made.
(b) Any unit of local government may, by such proceedings,
direct that all or any of the pledged receipts payable to the
unit of local government be paid directly to the Authority or
any other entity (including, without limitation, any trustee)
for the purpose of paying the principal of, premium, if any,
and interest on, and fees relating to, such local government
securities or for the purpose of paying such lease rental
payments to the extent necessary to pay the principal of,
premium, if any, and interest on, and other fees related to,
such local government securities secured by such lease rental
payments. Upon receipt of a certified copy of the proceedings
by the State Treasurer, the State Comptroller, and the
Department of Revenue, the State Comptroller and State

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

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

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any trustee) or has not paid or is in default as to the payment
of such lease rental payments securing the payment of the
principal of, premiums, if any, or interest on, or other fees
relating to, any local government security sold or delivered to
the Authority or any other entity (including, without
limitation, any trustee), the following shall apply:
(1) The State Comptroller and the State Treasurer shall
withhold the payment of such funds or moneys from the unit
of local government until the amount of the principal,
premium, if any, interest, or fees then due and unpaid has
been paid to the Authority or any other entity (including,
without limitation, any trustee), or the State Comptroller
and the State Treasurer have been advised that
arrangements, satisfactory to the Authority or such
entity, have been made for the payment of the principal,
premium, if any, interest, and fees.
(2) Within 10 days after a demand for payment by the
Authority or any other entity given to the unit of local
government, the State Treasurer, and the State
Comptroller, the State Treasurer shall pay such funds or
moneys as are legally available therefor to the Authority
or such entity for the payment of principal of, premium, if
any, or interest on, or fees relating to, such local
government securities. The Authority or any other entity
may carry out this Section and exercise all the rights,
remedies, and provisions provided or referred to in this

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

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and the failure to exercise or exert any rights or remedies
within a time or period provided by law may not be raised as a
defense by the unit of local government.
Section 45. Bond issues for multiple projects. The
Authority may issue a single bond issue pursuant to this Act
for a group of projects. A bond issue for multiple projects as
provided in this Section shall be subject to all requirements
for a bond issue as established by this Act.
Section 50. Acquisition of property.
(a) The Authority may, but need not, acquire title to any
project with respect to which it exercises its authority.
(b) The Authority has the power to acquire by purchase,
lease, gift, or otherwise any property or rights therein from
any person or persons, the State, any unit of local government,
the government of the United States, any agency or
instrumentality of the United States, or any other body politic
useful for its purposes, whether improved for the purposes of
any prospective project or unimproved. The Authority may also
accept any donation of funds for its purposes from any of those
sources. The Authority may acquire any real property, or rights
therein, upon condemnation. The acquisition by eminent domain
of such real property or any interest therein by the Authority
shall be in the manner provided by the Eminent Domain Act,
including Article 20.

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The Authority shall not exercise any quick-take eminent
domain powers granted by State law within the corporate limits
of a municipality unless the governing authority of the
municipality authorizes the Authority to do so. The Authority
shall not exercise any quick-take eminent domain powers granted
by State law within the unincorporated areas of a county unless
the county board authorizes the Authority to do so.
(c) The Authority has the power to develop, construct, and
improve, either under its own direction or through
collaboration with any approved applicant, or to acquire
through purchase or otherwise any project, using for that
purpose the proceeds derived from its sale of revenue bonds,
notes, or other evidences of indebtedness or governmental loans
or grants and to hold title in the name of the Authority to
those projects.
(d) The Authority has the power to enter into
intergovernmental agreements with the State, the Illinois
Finance Authority, the United States government, any agency or
instrumentality of the United States, any unit of local
government, or any other unit of government to the extent
allowed by Section 10 of Article VII of the Illinois
Constitution and the Intergovernmental Cooperation Act.
(e) The Authority has the power to share employees with
other units of government, including agencies of the United
States, agencies of the State, and agencies or personnel of any
unit of local government.

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(f) The Authority shall have the power to exercise powers
and issue bonds as if it were a municipality so authorized in
Divisions 12.1, 74, 74.1, 74.3, and 74.5 of Article 11 of the
Illinois Municipal Code.
Section 55. Eminent domain. Notwithstanding any other
provision of this Act, any power granted under this Act to
acquire property by condemnation or eminent domain is subject
to, and shall be exercised in accordance with, the Eminent
Domain Act.
Section 60. Depositories. The Authority shall biennially
designate a national or State bank or banks as depositories of
its money. The depositories shall be designated only within the
State and upon condition that bonds approved as to form and
surety by the Authority and at least equal in amount to the
maximum sum expected to be on deposit at any one time shall be
first given by the depositories to the Authority, those bonds
to be conditioned for the safe keeping and prompt repayment of
the deposits. If any of the funds of the Authority shall be
deposited by the treasurer in any such depository, then the
treasurer and the sureties on his or her official bond shall,
to that extent, be exempt from liability for the loss of any of
the deposited funds by reason of the failure, bankruptcy, or
any other act or default of the depository. However, the
Authority may accept assignments of collateral by any

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depository of its funds to secure the deposits to the same
extent and conditioned in the same manner as assignments of
collateral are permitted by law to secure deposits of the funds
of any unit of local government.
Section 65. Conflicts of interest.
(a) No member of the Authority or officer, agent, or
employee of the Authority shall, in his or her own name or in
the name of a nominee, be an officer or director of or hold an
ownership interest of more than 7.5% in any person,
association, trust, corporation, partnership, or other entity
that is, in its own name or in the name of a nominee, a party to
a contract or agreement upon which the member, officer, agent,
or employee may be called upon to act or vote.
(b) With respect to any direct or any indirect interest,
other than an interest prohibited in subsection (a), in a
contract or agreement upon which the member, officer, agent, or
employee may be called upon to act or vote, the member,
officer, agent, or employee shall disclose that interest to the
secretary of the Authority before the taking of final action by
the Authority concerning that contract or agreement and shall
also disclose the nature and extent of that interest and his or
her acquisition of that interest, which disclosures shall be
publicly acknowledged by the Authority and entered upon the
minutes of the Authority. If a member of the Authority or an
officer, agent, or employee of the Authority holds such an

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interest, then he or she shall refrain from any further
official involvement in regard to the contract or agreement,
from voting on any matter pertaining to the contract or
agreement, and from communicating with other members of the
Authority or its officers, agents, and employees concerning the
contract or agreement. Notwithstanding any other provision of
law, any contract or agreement entered into in conformity with
this subsection shall not be void or invalid by reason of an
interest described in this subsection, nor shall any person so
disclosing the interest and refraining from further official
involvement as provided in this subsection be guilty of an
offense, be removed from office, or be subject to any other
penalty on account of that interest.
(c) Any contract or agreement made in violation of
subsection (a) or (b) is void and gives rise to no action
against the Authority.
Section 70. Prohibition of taxing authority. The Authority
shall have no right or authority to levy any tax or special
assessment, to pledge the credit of the State or any other
subdivision or municipal corporation thereof, or to incur any
obligation enforceable upon any property, either within or
without the territory of the Authority.
Section 75. Fees and charges. The Authority may collect
fees and charges in connection with its loans, commitments, and

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servicing and provide technical assistance in connection with
the development, transportation, and distribution of water and
the provision of adequate sewage treatment and disposal
facilities in rural areas of the State.
Section 85. The Eminent Domain Act is amended by adding
Section 15-5-47 as follows:
(735 ILCS 30/15-5-47 new)
Sec. 15-5-47. Eminent domain powers in new Acts. The
following provisions of law may include express grants of the
power to acquire property by condemnation or eminent domain:
Illinois Rural Water Authority Act; Illinois Rural Water
Authority; for general purposes.