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| Public Act 098-0126
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| SB0494 Enrolled | LRB098 04716 OMW 34744 b |
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Counties Code is amended by adding 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:
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(55 ILCS 5/Div. 5-44 heading new) |
Division 5-44. Local Government Reduction and Efficiency
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(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
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any other state. |
(2) The large number of units of local government
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results in the inefficient delivery of governmental
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services at a higher cost to taxpayers. |
(3) In a number of cases, units of local government
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provide services that are duplicative in nature, as they
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are provided by other units of local government. |
(4) It is in the best interest of taxpayers that more
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efficient service delivery structures be established in
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order to replace units of local government that are not
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financially sustainable. |
(5) Units of local government managed by
appointed |
governing boards not directly accountable to the
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electorate can encourage a lack of oversight and
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complacency that is not in the best interest of taxpayers. |
(6) Various provisions of Illinois law governing the
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dissolution of units of local government are inconsistent
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and outdated. |
(7) The lack of a streamlined method to consolidate
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government functions and to dissolve units of local
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government results in an unfair tax burden on the citizens
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of the State of Illinois residing in those units of local
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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 |
functions.
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(55 ILCS 5/5-44010 new) |
Sec. 5-44010. Applicability. The powers and authorities |
provided by this Division 5-44 apply 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 such counties.
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(55 ILCS 5/5-44015 new) |
Sec. 5-44015. Powers; supplemental. The Sections of this |
Division 5-44
are intended to be supplemental and in addition |
to all
other powers and authorities granted to any county |
board, shall be construed liberally, and shall not be
construed |
as a limitation of any power or authority
otherwise granted.
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(55 ILCS 5/5-44020 new) |
Sec. 5-44020. Definitions. In this Division 5-44: |
"Fire protection jurisdiction" means a fire protection |
district, municipal fire department, or service organized |
under Section 5-1056.1 of the Counties Code, Sections 195 and |
200 of the Township Code, Section 10-2.1 of the Illinois |
Municipal Code, or the Illinois Fire Protection District Act. |
"Governing board" means the individual or individuals who |
constitute the
corporate authorities of a unit of local |
government; and |
"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 its governing board with the advice and consent |
of the county board, but shall not include a fire protection |
district that directly employs any regular full-time employees |
or a special district organized under the Water Commission Act |
of 1985.
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(55 ILCS 5/5-44025 new) |
Sec. 5-44025. Dissolution of units of local government. |
(a) A county board may, by ordinance, propose the |
dissolution of a unit of local government. The ordinance shall |
detail the purpose and cost savings to be achieved by such |
dissolution, and be published in a newspaper of general |
circulation served by the unit of local
government and on the |
county's website, if applicable. |
(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 all claims against the |
unit, all receipts of the unit, the inventory of all real and |
personal property owned by the unit or under its control or |
management, and any debts owed by the unit. The chairman may, |
at his or her discretion, undertake any other
audit or |
financial review of the affairs of the unit. The
person or |
entity conducting such audit shall report the
findings of the |
audit 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 |
ordinance dissolving the unit 150 days following the effective |
date of the ordinance. Upon adoption of the ordinance, but not |
before the end of the 30-day period set forth in subsection (e) |
of this Section and prior to its effective date, the chairman |
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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 |
dissolving 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. |
(e) Any dissolution of a unit of local government proposed |
pursuant to this Act shall be subject to a backdoor referendum. |
In addition to, or as part of, the authorizing ordinance |
enacted pursuant to subsection (c) of this Section, a notice |
shall be published that includes: (1) the specific number of |
voters required to sign a petition requesting that the question |
of dissolution be submitted to referendum; (2) the time when |
such petition must be filed; (3) the date of the prospective |
referendum; and (4) the statement of the cost savings and the |
purpose or basis for the dissolution as set forth in the |
authorizing ordinance under subsection (a) of this Section. The |
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county's election authority shall provide a petition form to |
anyone requesting one. If no petition is filed with the |
county's election authority within 30 days of publication of |
the authorizing ordinance and notice, the ordinance shall |
become effective. |
However, the election authority shall certify the question |
for submission at the next election held in accordance with |
general election law if a petition: (1) is filed within the |
30-day period; (2) is signed by electors numbering either 7.5% |
of the registered voters in the governmental unit or 200 |
registered voters, whichever is less; and (3) asks that the |
question of dissolution be submitted to referendum. |
The election authority shall submit the question to voters |
residing in the area served by the unit of local government in |
substantially the following form: |
Shall the county board be authorized to dissolve [name |
of unit of local government]? |
The election authority shall record the votes as "Yes" or |
"No". |
If a majority of the votes cast on the question at such |
election are in favor of dissolution of the unit of local |
government and provided that notice of the referendum was |
provided as set forth in Section 12-5 of the Election Code, the |
county board is authorized to proceed pursuant to subsection |
(c) of this Section.
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(55 ILCS 5/5-44030 new) |
Sec. 5-44030. Trustee-in-dissolution; powers and duties. |
(a) The trustee-in-dissolution shall have the following |
powers and duties: |
(1) to execute all of the powers and duties of the |
previous board; |
(2) to levy and rebate taxes, subject to the approval |
of the 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; |
(3) to present, within 30 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; |
(4) to 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; |
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(5) to 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 |
(6) to 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 Division. Nothing |
in this Section shall prohibit the county from acquiring |
any or all real or personal property of the district. |
(b) For fire protection jurisdictions, the |
trustee-in-dissolution shall not have: |
(1) the powers enumerated in this Section unless the |
dissolution of that unit of local government shall not |
increase the average response times nor decrease the level |
of services provided; and |
(2) the power to decrease the levy that is in effect on |
or before the date of dissolution of the fire protection |
jurisdiction that affects the provision of fire and |
emergency medical services.
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(55 ILCS 5/5-44035 new) |
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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 |
available in the
treasury at the time of consolidation, such |
lien shall be
unimpaired by such dissolution and the lien shall |
continue
in favor of the bond or note holders. The funds |
available
subject to such a lien shall be set apart and held |
for the
purpose of retiring such secured debt and no such funds
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shall be transferred into the general funds of the county. |
(b) In case any unit dissolved pursuant to this Division
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has unsecured debts outstanding at the time of dissolution,
any |
funds in the treasury of such unit or otherwise
available and |
not committed shall, to the extent necessary,
be applied to the |
payment of such 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 district. The |
county board shall abate this taxation upon the discharge of |
all outstanding obligations.
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(55 ILCS 5/5-44040 new) |
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 of the Property Tax Code that pertain to the |
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establishment of special service areas, all or part of the |
territory formerly served by the dissolved unit of local |
government may be established as a special service area or |
areas of the county if the county board by resolution |
determines that this designation is necessary for it to provide |
services. The special service area, if created, shall include |
all territory formerly served by the dissolved unit of local |
government if the dissolved unit has outstanding indebtedness. |
If the boundaries of a special service area created under this |
subsection 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. |
All or part of the territory formerly served by a dissolved |
fire protection jurisdiction shall not be established as a |
special service area unless the creation of the special service |
area does not increase the average response times nor decrease |
the level of service provided. |
(b) In addition to any other powers provided by law, the |
governing body of a special service area created pursuant to |
this subsection 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. However, the |
governing board shall not have the power to decrease the levy |
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that is in effect on or before the date of dissolution of the |
fire protection jurisdiction that affects the provision of fire |
and emergency medical services. |
(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 of the |
Property Tax Code.
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(55 ILCS 5/5-44045 new) |
Sec. 5-44045. Abatement of levy. Whenever a county has
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dissolved a unit of local government pursuant to this Division,
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the county or municipality 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 or municipality abates the levy in the manner set forth |
by the Special Service Area Tax Law of the Property Tax Code.
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(55 ILCS 5/5-44050 new) |
Sec. 5-44050. Tax collection and enforcement. The |
dissolution of a unit of
government pursuant to this Division |
shall not adversely affect
proceedings for the collection or |
enforcement of any tax.
Those proceedings shall continue to |
finality as
though no dissolution had taken place. The proceeds |
thereof
shall be paid over to the treasurer of the county to be
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used for the purpose for which the tax was levied
or assessed. |
Proceedings to collect and enforce such taxes
may be instituted |
