Bill Text: IL SB2749 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Provides that the fee that must be paid to a foreign fire insurance board by a corporation, company, or association that is not incorporated under the laws of the State and which is engaged in effecting fire insurance in the municipality or fire protection district shall be 2% of the gross receipts received from fire insurance upon property situated within the municipality or district (rather than a sum not exceeding 2%). Allows a foreign fire insurance board aggrieved by a violation relating to foreign fire insurance board fees to file suit. Provides that a department foreign fire insurance board may: (i) establish, manage, and maintain an account for the holding and expenditure of all funds paid to the board; (ii) contract for the purchase of goods and services; and (iii) sue all parties necessary to enforce its rights. Limits home rule powers. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB2749 Detail]

Download: Illinois-2019-SB2749-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB2749 Introduced 2/4/2020, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-10-1 from Ch. 24, par. 11-10-1
65 ILCS 5/11-10-2 from Ch. 24, par. 11-10-2
Amends the Illinois Municipal Code. Provides that the fee that must be paid to a foreign fire insurance board by a corporation, company, or association that is not incorporated under the laws of the State and which is engaged in effecting fire insurance in the municipality or fire protection district shall be 2% of the gross receipts received from fire insurance upon property situated within the municipality or district (rather than a sum not exceeding 2%). Allows a foreign fire insurance board aggrieved by a violation relating to foreign fire insurance board fees to file suit. Provides that a department foreign fire insurance board may: (i) establish, manage, and maintain an account for the holding and expenditure of all funds paid to the board; (ii) contract for the purchase of goods and services; and (iii) sue all parties necessary to enforce its rights. Limits home rule powers. Makes other changes. Effective immediately.
LRB101 16888 AWJ 66287 b
FISCAL NOTE ACT MAY APPLY HOME RULE NOTE ACT MAY APPLY
A BILL FOR
SB2749 LRB101 16888 AWJ 66287 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Sections 11-10-1 and 11-10-2 as follows:
(65 ILCS 5/11-10-1) (from Ch. 24, par. 11-10-1)
Sec. 11-10-1. (a) In each municipality or fire protection
district, whether incorporated under a general or special law,
which has a fire department established and maintained by
municipal or fire protection district ordinances, every
corporation, company, and association which is not
incorporated under the laws of this state and which is engaged
in effecting fire insurance in the municipality or fire
protection district, shall pay to the foreign fire insurance
board or to the secretary of the fire protection district for
the maintenance, use, and benefit of the fire department
thereof, a sum of not exceeding 2% of the gross receipts
received from fire insurance upon property situated within the
municipality or district.
Each municipality and fire protection district may
prescribe by ordinance the rate of the tax or license fee to be
paid, but this rate shall not exceed the rate specified in this
section. Each designated corporation, company, and association

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shall pay at the rate so prescribed by this subsection, upon
the amount of all premiums which have been received during the
year ending on every first day of July for all fire insurance
effected or agreed to be effected on property situated within
the municipality or fire protection district, by that
corporation, company, or association respectively.
Every person who acts in any specified municipality or fire
protection district as agent, or otherwise, on behalf of a
designated corporation, company, or association, shall render
to the treasurer of the foreign fire insurance board or
secretary of the fire protection district, on or before the
fifteenth day of July of each year, a full and true account,
verified by his oath, of all of the premiums which, during the
year ending on the first day of July preceding the report, were
received by him, or by any other person for him on behalf of
that corporation, company, or association. He shall specify in
this report the amounts received for fire insurance, and he
shall pay to the treasurer of the foreign fire insurance board,
or to the secretary of the fire protection district, at the
time of rendering this report, the amount as determined by the
rate fixed by this subsection by the ordinance of the
municipality or fire protection district for which his
corporation, company, or association is accountable under this
section and the ordinance.
If this account is not rendered on or before the fifteenth
day of July of each year, or if the sum due remains unpaid

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after that day, it shall be unlawful for any corporation,
company, or association, so in default, to transact any
business in the municipality or fire protection district until
the sum due has been fully paid. But this provision shall not
relieve any corporation, company, or association from the
payment of any loss upon any risk that may be taken in
violation of this requirement.
The amount of this tax or license fee may be recovered from
the corporation, company, or association which owes it, or from
its agent, by an action brought by a foreign fire insurance
board in the name and for the use of the municipality or fire
protection district as for money had and received.
The foreign fire insurance board municipal comptroller, if
any, and if not, then the municipal clerk or the secretary of
the fire protection district, or their designee, may examine
the books, records, and other papers and documents of a
designated agent, corporation, company, or association for the
purpose of verifying the correctness of the report of the
amounts received for fire insurance.
This subsection section shall not be applicable to receipts
from contracts of marine insurance, even though they include
insurance against fire, where the premium for the fire
insurance is not separately specified.
(b) A foreign fire insurance board aggrieved by a violation
of this Section may file suit in the Circuit Court in the
county where the alleged violation occurred.

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(c) The regulation of foreign fire insurance boards and
their taxes or license fees are exclusive powers and functions
of the State. A home rule municipality may not regulate foreign
fire insurance boards and their taxes or license fees. This
Section is a denial and limitation of home rule powers and
functions under subsection (h) of Section 6 of Article VII of
the Illinois Constitution.
(Source: P.A. 95-807, eff. 8-12-08.)
(65 ILCS 5/11-10-2) (from Ch. 24, par. 11-10-2)
Sec. 11-10-2. (a) A department foreign fire insurance board
shall be created by and among the sworn members of within the
fire department of each municipality with fewer than 500,000
inhabitants that has an organized fire department. The board
shall consist of 7 trustees; the fire chief, who shall hold
office by virtue of rank, and 6 members, who shall be elected
at large by the sworn members of the department. If there is an
insufficient number of candidates to fill all these positions,
the number of board members may be reduced, but not to fewer
than 3 trustees. All members of the department shall be
eligible to be elected as officers of the department foreign
fire insurance board. The members of this board shall annually
elect officers. These officers shall be a chairman and a
treasurer. The trustees of the department foreign fire
insurance board shall make all needful rules and regulations
with respect to the department foreign fire insurance board and

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the management of the money to be paid appropriated to the
board. The department foreign fire insurance board may
establish, manage, and maintain an account for the holding and
expenditure of all funds paid to the board. The department
foreign fire insurance board may contract for the purchase of
goods and services. The department foreign fire insurance board
may sue all parties necessary to enforce its rights under this
Section. The officers of the department foreign fire insurance
board shall develop and maintain a listing of those items that
the board feels are appropriate expenditures under this Act.
The treasurer of the department foreign fire insurance board
shall give a sufficient bond to the municipality in which the
fire department is organized. This bond shall be approved by
the mayor or president, as the case may be, conditioned upon
the faithful performance by the treasurer of his or her duties
under the ordinance and the rules and regulations provided for
in this section. The treasurer of the department foreign fire
insurance board shall receive the appropriated money and shall
pay out the money upon the order of the department foreign fire
insurance board for the maintenance, use, and benefit of the
department. As part of the annual municipal audit, these funds
shall be audited to verify that the funds have been expended by
that board only for the maintenance, use, and benefit of the
department.
(b) As used in this subsection, "active member" means a
member of the Chicago Fire Department who is not receiving a

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disability pension, retired, or a deferred pensioner of the
Firemen's Annuity and Benefit Fund of Chicago.
A department foreign fire insurance board is created within
the Chicago Fire Department. The board shall consist of 7
trustees who shall be initially elected on or before January 1,
2019: the fire commissioner, who shall hold office by virtue of
rank, and 6 elected trustees, who shall be elected at large by
the sworn members of the department. If there is an
insufficient number of candidates seeking election to each
vacant trustee position, the number of board members is reduced
to 5 trustees, including the fire commissioner of the
department, until the next election cycle when there are enough
active members seeking election to fill all 7 member seats. All
active members are eligible to be elected as trustees of the
department foreign fire insurance board. Of the trustees first
elected, 3 trustees shall be elected to a 2-year term and 3
trustees shall be elected to a 3-year term. After the initial
election, a trustee shall be elected for a term of 3 years. If
a member of the board resigns, is removed, or is unable to
continue serving on the board, the vacancy shall be filled by
special election of the active members or, in the case of a
vacancy that will exist for fewer than 180 days until the term
expires, by appointment by majority vote of the members of the
board.
The members of the board shall annually elect officers.
These officers shall be a chairman, treasurer, and secretary.

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The trustees of the board shall make rules and regulations with
respect to the board and the management of the money
appropriated to the board. The officers of the board shall
develop and maintain a listing of those items that the board
believes are appropriate expenditures under this subsection.
The treasurer of the board shall give a sufficient bond to the
City of Chicago. The cost of the bond shall be paid out of the
moneys in the board's fund. The bond shall be conditioned upon
the faithful performance by the treasurer of his or her duties
under the rules and regulations provided for in this
subsection. The treasurer of the board shall receive the
appropriated proceeds and shall disburse the proceeds upon the
order of the board for the maintenance, use, and benefit of the
department consistent with this subsection. As part of the
annual municipal audit, these funds shall be audited to verify
that the funds have been expended lawfully by the board
consistent with this subsection.
Within 30 days after receipt of any foreign fire insurance
proceeds by the City of Chicago, the City of Chicago shall
transfer the proceeds to the board by depositing the proceeds
into an account determined by the board, except that if the
effective date of this amendatory Act of the 100th General
Assembly is after July 31, 2018, then the City of Chicago
shall, for budget year 2019 only, transfer only 50% of the
proceeds to the board. Notwithstanding any other provision of
law: 50% of the foreign fire insurance proceeds received by the

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board shall be used for the maintenance, use, benefit, or
enhancement of fire stations or training facilities used by the
active members of the fire department; 25% of the foreign fire
insurance proceeds received by the board shall be used for the
maintenance, use, benefit, or enhancement of emergency
response vehicles, tools, and equipment used by the active
members of the department; and 25% of the foreign fire
insurance proceeds received by the board shall be used for the
maintenance and enhancement of the department and for the use
and benefit of the active members of the department in a manner
otherwise consistent with this subsection. Foreign fire
insurance proceeds may not be used to purchase, maintain, or
enhance personal property of a member of the department, except
for personal property used in the performance of his or her
duties or training activities.
(c) The provisions of this Section shall be the exclusive
power of the State, pursuant to subsection (h) of Section 6 of
Article VII of the Constitution.
(Source: P.A. 100-656, eff. 7-31-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.