Bill Text: IL HB0439 | 2013-2014 | 98th General Assembly | Amended

---

Bill Title: Amends the Counties Code. Makes a technical change in a Section concerning the short title.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Failed) 2014-12-03 - Session Sine Die [HB0439 Detail]

Download: Illinois-2013-HB0439-Amended.html

---

Rep. Jack D. Franks

Filed: 4/11/2013

09800HB0439ham002 LRB098 03257 OMW 44259 a
AMENDMENT TO HOUSE BILL 439
AMENDMENT NO. ______. Amend House Bill 439 by replacing
everything after the enacting clause with the following:
"Section 5. The Counties Code is amended by adding the
Division 5-44 to Article 5 and Sections 5-44005, 5-44010,
5-44015, 5-44020, 5-44025, 5-44030, 5-44035, 5-44040, 5-44045,
5-44050, and 5-44055 as follows:
(55 ILCS 5/Div. 5-44 heading new)
Division 5-44.
Local Government Reduction and Efficiency
(55 ILCS 5/5-44005 new)
Sec. 5-44005. Findings and purpose.
(a) The General Assembly finds:
(1) Illinois has more units of local government than
any other state.

09800HB0439ham002 - 2 - LRB098 03257 OMW 44259 a
(2) The large number of units of local government
results in the inefficient delivery of governmental
services at a higher cost to taxpayers.
(3) In a number of cases, units of local government
provide services that are duplicative in nature, as they
are provided by other units of local government.
(4) It is in the best interest of taxpayers that more
efficient service delivery structures be established in
order to replace units of local government that are not
financially sustainable.
(5) Units of local government managed by appointed
governing boards not directly accountable to the
electorate can encourage a lack of oversight and
complacency that is not in the best interest of taxpayers.
(6) Various provisions of Illinois law governing the
dissolution of units of local government are inconsistent
and outdated.
(7) The lack of a streamlined method to consolidate
government functions and to dissolve units of local
government results in an unfair tax burden on the citizens
of the State of Illinois residing in those units of local
government and prevents the expenditure of limited public
funds for critical programs and services.
(b) The purpose of this Act is to provide county boards
with supplemental authority regarding the dissolution of units
of local government and the consolidation of governmental

09800HB0439ham002 - 3 - LRB098 03257 OMW 44259 a
functions.
(55 ILCS 5/5-44010 new)
Sec. 5-44010. Powers; supplemental. The provisions of this
Division are intended to be supplemental and in addition to all
other powers or authorities granted to any governmental unit,
shall be construed liberally, and shall not be construed as a
limitation of any power or authority otherwise granted.
(55 ILCS 5/5-44015 new)
Sec. 5-44015. Applicability. This Division applies only to
counties with a population of more than 900,000 and less than
3,000,000 that are contiguous to a county with a population of
more than 3,000,000 and units of local government within these
counties.
(55 ILCS 5/5-44020 new)
Sec. 5-44020. Definitions. In this Division:
"Governing board" means the individual or individuals who
constitute the corporate authorities of a unit of local
government.
"Unit of local government" or "unit" means any unit of
local government located entirely within one county, to which
the county board chairman or county executive directly appoints
a majority of the governing board or appoints a majority of its
governing board with the advice and consent of the county

09800HB0439ham002 - 4 - LRB098 03257 OMW 44259 a
board, but shall not include a fire protection district that
directly employs more than 3 regular full-time employees.
(55 ILCS 5/5-44025 new)
Sec. 5-44025. Authority of a county board to dissolve units
of local government.
(a) A county board may by ordinance propose the dissolution
of any unit of local government as defined under Section
5-44020 of this Division. The ordinance shall detail the
purpose and cost savings to be achieved by the dissolution and
shall be published in a newspaper of general circulation in the
area served by the unit of local government and on the county's
website, if it has one.
(b) Upon the effective date of an ordinance enacted
pursuant to subsection (a) of this Section, the chairman of the
county board shall cause an audit of (1) all claims against the
unit, (2) all receipts of the unit, (3) the inventory of all
real and personal property owned by the unit or under its
control or management, (4) any debts owed by the unit, and (5)
may, in his or her discretion, undertake any other audit or
financial review of the affairs of the unit. The person or
entity conducting the audit shall report its findings to the
county board and to the chairman of the county board within 30
days.
(c) Following the return of the audit report required by
subsection (b) of this Section, the county board may adopt an

09800HB0439ham002 - 5 - LRB098 03257 OMW 44259 a
ordinance dissolving the unit 120 days following the effective
date of the ordinance. Upon adoption of the ordinance, but
prior to its effective date, the chairman of the county board
shall petition the circuit court for an order designating a
trustee-in-dissolution for the unit, immediately terminating
the terms of the members of the governing board of the unit of
local government on the effective date of the ordinance, and
providing for the compensation of the trustee, which shall be
paid from the corporate funds of the unit.
(d) Upon the effective date of an ordinance enacted under
subsection (c) of this Section, and notwithstanding any other
provision of law, the State's attorney, or his or her designee,
shall become the exclusive legal representative of the
dissolved unit of local government. The county treasurer shall
become the treasurer of the unit of local government and the
county clerk shall become the secretary of the unit of local
government.
(55 ILCS 5/5-44030 new)
Sec. 5-44030. Powers and duties of the
trustee-in-dissolution. The trustee-in-dissolution shall have
the following powers and duties:
(a) execute all of the powers and duties of the previous
board;
(b) review all records of the unit of local government;
(c) levy and rebate taxes, subject to the approval of the

09800HB0439ham002 - 6 - LRB098 03257 OMW 44259 a
county board, for the purpose of paying the debts, obligations,
and liabilities of the unit that are outstanding on the date of
the dissolution and the necessary expenses of closing up the
affairs of the district if these funds are not available from
the unit of local government's general fund;
(d) present, within 14 days of his or her appointment, a
plan for the consolidation and dissolution of the unit of local
government to the county board for its approval. The plan shall
identify what functions, if any, of the unit of local
government shall be undertaken by the county upon dissolution
and whether any taxes previously levied for the provision of
these functions shall be maintained;
(e) enter into an intergovernmental agreement with one or
more governmental entities to utilize existing resources
including, but not limited to, labor, materials, and property,
as may be needed to carry out the foregoing duties;
(f) enter into an intergovernmental agreement with the
county to combine or transfer any of the powers, privileges,
functions, or authority of the unit of local government to the
county as may be required to facilitate the transition; and
(g) sell the property of the unit and, in case any excess
remains after all liabilities of the unit are paid, the excess
shall be transferred to a special fund created and maintained
by the county treasurer to be expended solely to defer the
costs incurred by the county in performing the duties of the
unit, subject to the requirements of Section 5-44035 of this

09800HB0439ham002 - 7 - LRB098 03257 OMW 44259 a
Division. Nothing in this Section shall prohibit the county
from acquiring any or all real or personal property of the
district.
(55 ILCS 5/5-44035 new)
Sec. 5-44035. Outstanding indebtedness.
(a) In case any unit dissolved pursuant to this Division
has bonds or notes outstanding that are a lien on funds on hand
in the treasury at the time of consolidation, the lien shall be
unimpaired by the dissolution and shall continue in favor of
the bond or note holders. The funds on hand subject to a lien
shall be set apart and held for the purpose of retiring the
secured debt, and no such funds shall be transferred into the
general funds of the county.
(b) In case any unit dissolved pursuant to this Division
has unsecured debts outstanding at the time of dissolution, any
funds in the treasury of the unit or otherwise available and
not committed shall, to the extent necessary, be applied to the
payment of these debts.
(c) All property in the territory served by the dissolved
unit of government shall be subject to taxation to pay the
debts, bonds, and obligations of the dissolved unit. The county
board shall abate this taxation upon the discharge of all
outstanding obligations.
(55 ILCS 5/5-44040 new)

09800HB0439ham002 - 8 - LRB098 03257 OMW 44259 a
Sec. 5-44040. Effect of dissolution. Immediately upon the
dissolution of a unit of local government pursuant to this
Division:
(a) Notwithstanding the provisions of the Special Service
Area Tax Law that pertain the establishment of special service
areas, all or part of the territory formerly served by the unit
of local government may be established as a special service
area or areas of the county if the county board determines that
this designation is necessary for it to provide services. If
the boundaries of a special service area created under Section
5-44035 of this Division include territory within a
municipality, the corporate authorities of that municipality
may, with the consent of the county, assume responsibility for
the special service area and become its governing body.
(b) In addition to any other powers provided by law, the
governing body of a special service area created pursuant to
Section 5-44035 of this Division shall assume and is authorized
to exercise all the powers and duties of the dissolved unit
with respect to the special service area. The governing body is
also authorized to continue to levy any tax previously imposed
by the unit of local government within the special service
area.
(c) Subsequent increases of the current tax levy within the
special service area or areas shall be made in accordance with
the provisions of the Special Service Area Tax Law.

09800HB0439ham002 - 9 - LRB098 03257 OMW 44259 a
(55 ILCS 5/5-44045 new)
Sec. 5-44045. Abatement of levy. Whenever a county has
dissolved a unit of local government pursuant to this Division,
it shall, within 6 months of the effective date of the
dissolution and every year thereafter, evaluate the need to
continue any existing tax levy until the county board abates
the levy in the manner proscribed by the Special Service Area
Law.
(55 ILCS 5/5-44050 new)
Sec. 5-44050. Tax collection. The dissolution of a unit of
government pursuant to this Division shall not adversely affect
proceedings for the collection or enforcement of any tax and
shall proceed to finality as though no dissolution had taken
place. The proceeds thereof shall be paid over to the treasurer
of the county to be used for the purpose for which the tax was
levied or assessed. Proceedings to collect and enforce these
taxes may be instituted and carried on in the name of the unit.
(55 ILCS 5/5-44055 new)
Sec. 5-44055. Litigation. All suits pending in any court on
behalf of or against any unit dissolved pursuant to this
Division may be prosecuted or defended in the name of the
county by the State's attorney. All judgments obtained for any
unit dissolved shall be collected and enforced by the county
for its benefit.

09800HB0439ham002 - 10 - LRB098 03257 OMW 44259 a
Section 99. Effective date. This Act takes effect upon
becoming law.".