Bill Text: IL SB1571 | 2021-2022 | 102nd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of the introduced bill with the following changes: Provides that the Foreign Fire Insurance Company Fees Division may be cited as the Foreign Fire Insurance License Fee Act. Provides that a license fee may be recovered from a third party. Provides that a foreign fire insurance board's or board secretary's designee may examine the books, records, and other papers for verification purposes. Provides that the provisions are applicable to receipts from contracts of marine fire insurance (rather than the entire Section shall not be applicable to receipts from contracts of marine insurance). Provides that the board may elect other officers, in addition to a chairman and treasurer, deemed necessary by the board. Strikes provisions concerning the treasurer giving bond to the municipality in which the fire department is organized. Provides that, in the contracting for the purchase of services using funds paid to the board, services may include, but are not limited to, the procurement and payment of all accounting, legal, collection, or other professional services deemed by the board to be necessary to the execution of its duties under the Division. Provides that binding arbitration is the exclusive method to solve disputes between a fire chief and the remaining members of a foreign fire insurance board concerning whether any expenditure of funds by the board is for the maintenance, use, or benefit of the department or for any other purpose authorized by the Division. Adds provisions concerning collection of licensing fees. Makes other changes. Effective January 1, 2023 (rather than effective immediately).
Spectrum: Bipartisan Bill
Status: (Passed) 2022-05-06 - Public Act . . . . . . . . . 102-0740 [SB1571 Detail]
Download: Illinois-2021-SB1571-Introduced.html
Bill Title: Reinserts the provisions of the introduced bill with the following changes: Provides that the Foreign Fire Insurance Company Fees Division may be cited as the Foreign Fire Insurance License Fee Act. Provides that a license fee may be recovered from a third party. Provides that a foreign fire insurance board's or board secretary's designee may examine the books, records, and other papers for verification purposes. Provides that the provisions are applicable to receipts from contracts of marine fire insurance (rather than the entire Section shall not be applicable to receipts from contracts of marine insurance). Provides that the board may elect other officers, in addition to a chairman and treasurer, deemed necessary by the board. Strikes provisions concerning the treasurer giving bond to the municipality in which the fire department is organized. Provides that, in the contracting for the purchase of services using funds paid to the board, services may include, but are not limited to, the procurement and payment of all accounting, legal, collection, or other professional services deemed by the board to be necessary to the execution of its duties under the Division. Provides that binding arbitration is the exclusive method to solve disputes between a fire chief and the remaining members of a foreign fire insurance board concerning whether any expenditure of funds by the board is for the maintenance, use, or benefit of the department or for any other purpose authorized by the Division. Adds provisions concerning collection of licensing fees. Makes other changes. Effective January 1, 2023 (rather than effective immediately).
Spectrum: Bipartisan Bill
Status: (Passed) 2022-05-06 - Public Act . . . . . . . . . 102-0740 [SB1571 Detail]
Download: Illinois-2021-SB1571-Introduced.html
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
1 | AN ACT concerning local government.
| ||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
4 | Section 5. The Illinois Municipal Code is amended by | ||||||||||||||||||||||||||
5 | changing Sections 11-10-1 and 11-10-2 as follows:
| ||||||||||||||||||||||||||
6 | (65 ILCS 5/11-10-1) (from Ch. 24, par. 11-10-1)
| ||||||||||||||||||||||||||
7 | Sec. 11-10-1. (a) In each municipality or fire protection | ||||||||||||||||||||||||||
8 | district, whether
incorporated under a general or special law, | ||||||||||||||||||||||||||
9 | which has a fire department
established and maintained by | ||||||||||||||||||||||||||
10 | municipal or fire protection district
ordinances, every | ||||||||||||||||||||||||||
11 | corporation, company, and association which is not
| ||||||||||||||||||||||||||
12 | incorporated under the laws of this state and which is engaged | ||||||||||||||||||||||||||
13 | in effecting
fire insurance in the municipality or fire | ||||||||||||||||||||||||||
14 | protection district, shall pay
to the foreign fire insurance | ||||||||||||||||||||||||||
15 | board or to the secretary of the fire
protection district for | ||||||||||||||||||||||||||
16 | the maintenance, use, and benefit of the fire
department | ||||||||||||||||||||||||||
17 | thereof, a sum of not exceeding 2% of the gross receipts | ||||||||||||||||||||||||||
18 | received
from fire insurance upon property situated within the | ||||||||||||||||||||||||||
19 | municipality or
district.
| ||||||||||||||||||||||||||
20 | Each municipality and fire protection district may | ||||||||||||||||||||||||||
21 | prescribe by
ordinance the rate of the tax or license fee to be | ||||||||||||||||||||||||||
22 | paid, but this rate
shall not exceed the rate specified in this | ||||||||||||||||||||||||||
23 | section. Each designated
corporation, company, and association |
| |||||||
| |||||||
1 | shall pay at the rate so prescribed by this subsection ,
upon | ||||||
2 | the amount of all premiums which have been received during the | ||||||
3 | year
ending on every first day of July for all fire insurance | ||||||
4 | effected or agreed
to be effected on property situated within | ||||||
5 | the municipality or fire
protection district, by that | ||||||
6 | corporation, company, or association
respectively.
| ||||||
7 | Every person who acts in any specified municipality or | ||||||
8 | fire protection
district as agent, or otherwise, on behalf of | ||||||
9 | a designated corporation,
company, or association, shall | ||||||
10 | render to the treasurer of the foreign fire insurance board or | ||||||
11 | secretary of the fire
protection district, on or before the | ||||||
12 | fifteenth day of July of each year, a
full and true account, | ||||||
13 | verified by his oath, of all of the premiums which,
during the | ||||||
14 | year ending on the first day of July preceding the report, were
| ||||||
15 | received by him, or by any other person for him on behalf of | ||||||
16 | that
corporation, company, or association. He shall specify in | ||||||
17 | this report the
amounts received for fire insurance, and he | ||||||
18 | shall pay to the treasurer of
the foreign fire insurance | ||||||
19 | board, or to the secretary of the fire protection district, at
| ||||||
20 | the time of rendering this report, the amount as determined by | ||||||
21 | the rate
fixed by this subsection by the ordinance of the | ||||||
22 | municipality or fire protection district for
which his | ||||||
23 | corporation, company, or association is accountable under this
| ||||||
24 | section and the ordinance .
| ||||||
25 | If this account is not rendered on or before the fifteenth | ||||||
26 | day of July
of each year, or if the sum due remains unpaid |
| |||||||
| |||||||
1 | after that day, it shall be
unlawful for any corporation, | ||||||
2 | company, or association, so in default, to
transact any | ||||||
3 | business in the municipality or fire protection district until
| ||||||
4 | the sum due has been fully paid. But this provision shall not | ||||||
5 | relieve any
corporation, company, or association from the | ||||||
6 | payment of any loss upon any
risk that may be taken in | ||||||
7 | violation of this requirement.
| ||||||
8 | The amount of this tax or license fee may be recovered from | ||||||
9 | the
corporation, company, or association which owes it, or | ||||||
10 | from its agent, by
an action brought by a foreign fire | ||||||
11 | insurance board in the name and for the use of the municipality | ||||||
12 | or fire
protection district as for money had and received .
| ||||||
13 | The foreign fire insurance board municipal comptroller, if | ||||||
14 | any, and if not, then the municipal clerk
or the secretary of | ||||||
15 | the fire protection district, or their designee, may examine | ||||||
16 | the books,
records, and other papers and documents of a | ||||||
17 | designated agent, corporation,
company, or association for the | ||||||
18 | purpose of verifying the correctness of the
report of the | ||||||
19 | amounts received for fire insurance.
| ||||||
20 | This subsection section shall not be applicable to | ||||||
21 | receipts from contracts of
marine insurance, even though they | ||||||
22 | include insurance against fire, where
the premium for the fire | ||||||
23 | insurance is not separately specified. | ||||||
24 | (b) A foreign fire insurance board aggrieved by a | ||||||
25 | violation of this Section may file suit in the Circuit Court in | ||||||
26 | the county where the alleged violation occurred. |
| |||||||
| |||||||
1 | (c) The regulation of foreign fire insurance boards and | ||||||
2 | their taxes or license fees are exclusive powers and functions | ||||||
3 | of the State. A home rule municipality may not regulate | ||||||
4 | foreign fire insurance boards and their taxes or license fees. | ||||||
5 | This Section is a denial and limitation of home rule powers and | ||||||
6 | functions under subsection (h) of Section 6 of Article VII of | ||||||
7 | the Illinois Constitution.
| ||||||
8 | (Source: P.A. 95-807, eff. 8-12-08.)
| ||||||
9 | (65 ILCS 5/11-10-2) (from Ch. 24, par. 11-10-2)
| ||||||
10 | Sec. 11-10-2. (a) A department foreign fire insurance | ||||||
11 | board shall be created by and among the sworn members of within | ||||||
12 | the fire department of each municipality with fewer than | ||||||
13 | 500,000 inhabitants that has an organized fire department. The | ||||||
14 | board shall consist of 7 trustees; the fire chief, who shall | ||||||
15 | hold office by virtue of rank, and 6 members, who shall be | ||||||
16 | elected at large by the sworn members of the department. If | ||||||
17 | there is an insufficient number of candidates to fill all | ||||||
18 | these positions, the number of board members may be reduced, | ||||||
19 | but not to fewer than 3 trustees. All members of the department | ||||||
20 | shall be eligible to be elected as
officers of the department | ||||||
21 | foreign fire insurance board. The members of this board shall | ||||||
22 | annually elect officers. These officers
shall be a chairman | ||||||
23 | and a treasurer. The trustees of the department foreign fire | ||||||
24 | insurance board shall make all needful rules and
regulations | ||||||
25 | with respect to the department foreign fire insurance board |
| |||||||
| |||||||
1 | and
the management of the money to be paid appropriated to the | ||||||
2 | board. The department foreign fire insurance board may | ||||||
3 | establish, manage, and maintain an account for the holding and | ||||||
4 | expenditure of all funds paid to the board. The department | ||||||
5 | foreign fire insurance board may contract for the purchase of | ||||||
6 | goods and services. The department foreign fire insurance | ||||||
7 | board may sue all parties necessary to enforce its rights | ||||||
8 | under this Section. The officers of the department foreign | ||||||
9 | fire insurance board
shall develop and maintain a listing of | ||||||
10 | those items that the board feels are
appropriate
expenditures | ||||||
11 | under this Act. The treasurer of the department foreign
fire | ||||||
12 | insurance board shall give a sufficient bond to the | ||||||
13 | municipality
in which the fire department is organized. This | ||||||
14 | bond shall be approved by
the mayor or president, as the case | ||||||
15 | may be, conditioned upon the faithful
performance by the | ||||||
16 | treasurer of his or her duties under the ordinance and
the | ||||||
17 | rules and regulations provided for in this section. The | ||||||
18 | treasurer
of the department foreign fire insurance board shall | ||||||
19 | receive the
appropriated money and shall pay out the money | ||||||
20 | upon the
order of the department foreign fire insurance board | ||||||
21 | for the
maintenance, use, and benefit of the department.
As | ||||||
22 | part of the annual municipal audit, these funds shall be | ||||||
23 | audited to verify
that the funds have been expended by that | ||||||
24 | board only for the maintenance, use, and benefit of the
| ||||||
25 | department.
| ||||||
26 | (b) As used in this subsection, "active member" means a |
| |||||||
| |||||||
1 | member of the Chicago Fire Department who is not receiving a | ||||||
2 | disability pension, retired, or a deferred pensioner of the | ||||||
3 | Firemen's Annuity and Benefit Fund of Chicago. | ||||||
4 | A department foreign fire insurance board is created | ||||||
5 | within the Chicago Fire Department. The board shall consist of | ||||||
6 | 7 trustees who shall be initially elected on or before January | ||||||
7 | 1, 2019: the fire commissioner, who shall hold office by | ||||||
8 | virtue of rank, and 6 elected trustees, who shall be elected at | ||||||
9 | large by the sworn members of the department. If there is an | ||||||
10 | insufficient number of candidates seeking election to each | ||||||
11 | vacant trustee position, the number of board members is | ||||||
12 | reduced to 5 trustees, including the fire commissioner of the | ||||||
13 | department, until the next election cycle when there are | ||||||
14 | enough active members seeking election to fill all 7 member | ||||||
15 | seats. All active members are eligible to be elected as | ||||||
16 | trustees of the department foreign fire insurance board. Of | ||||||
17 | the trustees first elected, 3 trustees shall be elected to a | ||||||
18 | 2-year term and 3 trustees shall be elected to a 3-year term. | ||||||
19 | After the initial election, a trustee shall be elected for a | ||||||
20 | term of 3 years. If a member of the board resigns, is removed, | ||||||
21 | or is unable to continue serving on the board, the vacancy | ||||||
22 | shall be filled by special election of the active members or, | ||||||
23 | in the case of a vacancy that will exist for fewer than 180 | ||||||
24 | days until the term expires, by appointment by majority vote | ||||||
25 | of the members of the board. | ||||||
26 | The members of the board shall annually elect officers. |
| |||||||
| |||||||
1 | These officers shall be a chairman, treasurer, and secretary. | ||||||
2 | The trustees of the board shall make rules and regulations | ||||||
3 | with respect to the board and the management of the money | ||||||
4 | appropriated to the board. The officers of the board shall | ||||||
5 | develop and maintain a listing of those items that the board | ||||||
6 | believes are appropriate expenditures under this subsection. | ||||||
7 | The treasurer of the board shall give a sufficient bond to the | ||||||
8 | City of Chicago. The cost of the bond shall be paid out of the | ||||||
9 | moneys in the board's fund. The bond shall be conditioned upon | ||||||
10 | the faithful performance by the treasurer of his or her duties | ||||||
11 | under the rules and regulations provided for in this | ||||||
12 | subsection. The treasurer of the board shall receive the | ||||||
13 | appropriated proceeds and shall disburse the proceeds upon the | ||||||
14 | order of the board for the maintenance, use, and benefit of the | ||||||
15 | department consistent with this subsection. As part of the | ||||||
16 | annual municipal audit, these funds shall be audited to verify | ||||||
17 | that the funds have been expended lawfully by the board | ||||||
18 | consistent with this subsection. | ||||||
19 | Within 30 days after receipt of any foreign fire insurance | ||||||
20 | proceeds by the City of Chicago, the City of Chicago shall | ||||||
21 | transfer the proceeds to the board by depositing the proceeds | ||||||
22 | into an account determined by the board, except that if the | ||||||
23 | effective date of this amendatory Act of the 100th General | ||||||
24 | Assembly is after July 31, 2018, then the City of Chicago | ||||||
25 | shall, for budget year 2019 only, transfer only 50% of the | ||||||
26 | proceeds to the board. Notwithstanding any other provision of |
| |||||||
| |||||||
1 | law: 50% of the foreign fire insurance proceeds received by | ||||||
2 | the board shall be used for the maintenance, use, benefit, or | ||||||
3 | enhancement of fire stations or training facilities used by | ||||||
4 | the active members of the fire department; 25% of the foreign | ||||||
5 | fire insurance proceeds received by the board shall be used | ||||||
6 | for the maintenance, use, benefit, or enhancement of emergency | ||||||
7 | response vehicles, tools, and equipment used by the active | ||||||
8 | members of the department; and 25% of the foreign fire | ||||||
9 | insurance proceeds received by the board shall be used for the | ||||||
10 | maintenance and enhancement of the department and for the use | ||||||
11 | and benefit of the active members of the department in a manner | ||||||
12 | otherwise consistent with this subsection. Foreign fire | ||||||
13 | insurance proceeds may not be used to purchase, maintain, or | ||||||
14 | enhance personal property of a member of the department, | ||||||
15 | except for personal property used in the performance of his or | ||||||
16 | her duties or training activities. | ||||||
17 | (c) The provisions of this Section shall be the exclusive | ||||||
18 | power of the
State, pursuant to subsection (h) of Section 6 of | ||||||
19 | Article VII of the
Constitution.
| ||||||
20 | (Source: P.A. 100-656, eff. 7-31-18.)
| ||||||
21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.
|