Rep. Donald L. Moffitt
Filed: 5/3/2011
 
 


 




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1
AMENDMENT TO HOUSE BILL 1362




2 AMENDMENT NO. ______. Amend House Bill 1362, AS AMENDED, by 
3replacing everything after the enacting clause with the 
4following:


5 "Section 5. The Fire Protection District Act is amended by 
6changing Section 11a as follows:




7 (70 ILCS 705/11a) (from Ch. 127 1/2, par. 31a)



8 Sec. 11a. 
The Board of Trustees of any fire protection 
9district organized
hereunder may contract with any corporation 
10organized to furnish fire
protection service or with any 
11association organized to furnish fire
protection service or 
12with any city, village, incorporated town, or
organized fire 
13protection district lying adjacent to such district for fire

14protection service to be furnished by such corporation or such 
15association
or such municipality or fire protection district 
16for the property within
such district or to be furnished by 
 
 
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1such district for the property within
such municipality. The 
2board of trustees may also contract for the
installation, 
3rental or use of fire hydrants within the fire protection

4district and for the furnishing of water to be used within such 
5district
for fire protection purposes, and for mutual aid from 
6and to other fire
protection districts, and for mutual aid from 
7and to corporations and
associations organized to furnish fire 
8protection service and for mutual
aid from and to 
9municipalities.

10 A municipality's fiscal obligations for fire protection

11services under a contract with a fire protection district

12entered into under this Section shall comply with the Local

13Government Prompt Payment Act.
If a municipality fails to make 
14a payment within 90 days, an interest penalty of 1% of any 
15amount approved and unpaid shall be added for each 90 days or 
16fraction thereof after the expiration of the 90 day period, 
17until final payment is made. In the case of an action in court 
18to collect delinquent fees from a contract for services between 
19a municipality and a fire protection district, the losing party 
20shall pay all reasonable legal fees incurred in the proceeding. 
21 When the Board of Trustees of a Fire Protection District 
22purchases fire
protection services from an organization 
23(specifically including without
limitation a city, village, 
24incorporated town, or adjacent fire protection
district) that 
25is required to be audited by "An Act in relation to audits
of 
26the accounts of certain governmental units and to repeal an Act 
 
 
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1therein
named", approved May 10, 1967, or by The Illinois 
2Municipal Auditing Law,
the scope of the audit of the 
3organization providing the fire protection
services shall be 
4expanded to require the licensed public accountant
performing 
5the audit to specifically report on compliance with the terms 
6of
the contract as it relates to financial matters, including 
7but not limited
to the amount charged to the purchasing Fire 
8Protection District. To the
extent possible, the financial 
9statements of the providing organization
shall segregate 
10accounts relating to fire protection service transactions
and 
11present them as a separate fund or as a separate department 
12within a
fund. A copy of the providing organization audit 
13report shall be furnished
to the purchasing Fire Protection 
14District within 6 months after the close
of the fiscal year of 
15the organization providing the fire protection services.

16 When the Board of Trustees of a Fire Protection District 
17purchases fire
protection services from an organization 
18(specifically including without
limitation a not-for-profit 
19corporation or a for-profit corporation or
association) that is 
20not required to be audited by "An Act in relation to
audits of 
21the accounts of certain governmental units and to repeal an Act

22therein named", approved May 10, 1967, or by The Illinois 
23Municipal
Auditing Law, the organization providing the fire 
24protection services shall
employ a person licensed to practice 
25public accounting under the laws of
this State to annually 
26audit the providing organization's financial
statements of all 
 
 
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1accounts, funds, and other moneys in the care, custody,
or 
2control of the providing organization. Such audit shall be 
3conducted in
accordance with Generally Accepted Auditing 
4Standards and the scope of such
audit shall be expanded to 
5require the licensed public accountant
performing the audit to 
6specifically report on compliance with the terms of
the 
7contract as it relates to financial matters, including but not 
8limited
to the amount charged to the purchasing Fire Protection 
9District. To the
extent possible, the financial statements of 
10the providing organization
shall segregate accounts relating 
11to fire protection service transactions
and present them as a 
12separate fund or as a separate department within a
fund. A copy 
13of the providing organization audit report shall be furnished

14to the purchasing Fire Protection District within 6 months 
15after the close
of the fiscal year of the organization 
16providing the fire protection
services. Within 15 days after 
17the first meeting of the board of directors
or trustees of the 
18organization providing the fire protection services that

19occurs after receiving the audit report, the organization 
20providing the
fire protection services shall publish excerpts 
21from the audit report that
relate to fire protection service 
22operations in accordance with Section 7
of this Act. When fire 
23protection services are rendered in more than one
geographic 
24area, publication or distribution should be made in each

25geographic area served.

26(Source: P.A. 86-216; 86-1023.)



 
 
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1 Section 99. Effective date. This Act takes effect upon 
2becoming law.".