103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3563

 

Introduced 2/9/2024, by Sen. Erica Harriss

 

SYNOPSIS AS INTRODUCED:
 
75 ILCS 5/4-9  from Ch. 81, par. 4-9
75 ILCS 10/5  from Ch. 81, par. 115
75 ILCS 16/30-45

    Amends the Illinois Local Library Act. Provides that the bond of a library treasurer or custodian of the moneys paid over to a library board shall not be less than 10% (rather than 50%) of the total funds received by the library in the last fiscal year or the treasurer or custodian of the moneys paid over to a library board may provide insurance coverage for negligent and intentional acts by library officials and employees that could result in the loss of library funds in an amount at least equal to 10% (rather than 50%) of the average amount of the library's operating fund from the prior 3 fiscal years. Makes similar changes in the Illinois Library System Act and the Public Library District Act of 1991 relating to treasurer bonds. Effective immediately.


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A BILL FOR

 

SB3563LRB103 36270 AWJ 66367 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Local Library Act is amended by
5changing Section 4-9 as follows:
 
6    (75 ILCS 5/4-9)  (from Ch. 81, par. 4-9)
7    Sec. 4-9. In townships and in cities, villages and
8incorporated towns having a population of 500,000 or less, the
9board of trustees shall require the treasurer of such board or
10such other person as may be designated as the custodian of the
11moneys paid over to such board to give a bond to be approved by
12such board and in such amount, not less than 10% 50% of the
13total funds received by the library in the last fiscal year,
14conditioned that he will safely keep and pay over upon the
15order of such board all funds received and held by him for such
16board of trustees. For a library in a city, village,
17incorporated town or township, the board of library trustees
18may designate the treasurer of the corporate authority, or the
19supervisor in the case of a township, as the custodian of the
20library fund, and the bond given by the treasurer or the
21supervisor shall satisfy the bond requirements of this section
22when properly endorsed. The cost of any surety bond shall be
23borne by the library. As an alternative to a personal bond on

 

 

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1the treasurer or custodian of funds, the board of trustees may
2require the treasurer or custodian to secure for the library
3an insurance policy or other insurance instrument that
4provides the library with coverage for negligent or
5intentional acts by library officials and employees that could
6result in the loss of library funds. The coverage shall be in
7an amount at least equal to 10% 50% of the average amount of
8the library's operating fund from the prior 3 fiscal years.
9The coverage shall be placed with an insurer approved by the
10board. The cost of any such coverage shall be borne by the
11library. The library shall provide the Illinois State Library
12a copy of the library's certificate of insurance at the time
13the library's annual report is filed.
14(Source: P.A. 97-101, eff. 1-1-12.)
 
15    Section 10. The Illinois Library System Act is amended by
16changing Section 5 as follows:
 
17    (75 ILCS 10/5)  (from Ch. 81, par. 115)
18    Sec. 5. Each library system created as provided in Section
194 of this Act shall be governed by a board of directors
20numbering at least 5 and no more than 15 persons, except as
21required by Section 6 for library systems in cities with a
22population of 500,000 or more. The board shall be
23representative of the variety of library interests in the
24system, and at least a majority shall be elected or selected

 

 

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1from the governing boards of the member public libraries, with
2not more than one director representing a single member
3library. For library systems as defined in subparagraph (3) of
4the definition of "library system" in Section 2, the board
5members shall be representative of the types of libraries that
6library system serves. The number of directors, the manner of
7election or selection, the term of office and the provision
8for filling vacancies shall be determined by the system
9governing board except that all board members must be eligible
10electors in the geographical area of the system. No director
11of any library system, however, shall be permitted to serve
12for more than a total of 6 years unless 2 years have elapsed
13since his sixth year of service.
14    The board of directors shall elect a president, secretary
15and treasurer. Before entering upon his duties, the treasurer
16shall be required to give a bond in an amount to be approved by
17the board, but in no case shall such amount be less than 10%
1850% of the system's area and per capita grant for the previous
19year, conditioned that he will safely keep and pay over upon
20the order of such board all funds received and held by him for
21the library system. As an alternative to a personal bond on the
22treasurer, the board of trustees may require the treasurer to
23secure for the system an insurance policy or other insurance
24instrument that provides the library with coverage for
25negligent or intentional acts by system officials and
26employees that could result in the loss of system funds. The

 

 

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1coverage shall be in an amount at least equal to 10% 50% of the
2average amount of the system's operating fund from the prior 3
3fiscal years. The coverage shall be placed with an insurer
4approved by the board. The cost of any such coverage shall be
5borne by the system. The system shall provide the Illinois
6State Library a copy of the system's certificate of insurance
7at the time the system's annual report is filed. The funds of
8the library system shall be deposited in a bank or savings and
9loan association designated by the board of directors and
10shall be expended only under the direction of such board upon
11properly authenticated vouchers.
12    No bank or savings and loan association shall receive
13public funds as permitted by this Section, unless it has
14complied with the requirements established pursuant to Section
156 of the Public Funds Investment Act.
16    The members of the board of directors of the library
17system shall serve without compensation but their actual and
18necessary expenses shall be a proper charge against the
19library fund.
20(Source: P.A. 97-101, eff. 1-1-12.)
 
21    Section 15. The Public Library District Act of 1991 is
22amended by changing Section 30-45 as follows:
 
23    (75 ILCS 16/30-45)
24    Sec. 30-45. Duties of officers.

 

 

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1    (a) The duties of the officers of the board are as provided
2in this Section.
3    (b) The president shall preside over all meetings, appoint
4members of committees authorized by the district's
5regulations, and perform other duties specified by the
6district's regulations, ordinances, or other appropriate
7action. In the president's absence, the vice president shall
8preside at meetings. The president shall not have or exercise
9veto powers.
10    (c) The vice president's duties shall be prescribed by
11regulations.
12    (d) The treasurer shall keep and maintain accounts and
13records of the district during the treasurer's term in office,
14indicating in those accounts and records a record of all
15receipts, disbursements, and balances in any funds.
16    Annual audit and financial report requirements shall
17conform with Section 3 of the Governmental Account Audit Act.
18    (e) The treasurer shall give bond to the district to
19faithfully discharge the duties of the office and to account
20to the district for all district funds coming into the
21treasurer's hands. The bond shall be in an amount and with
22sureties approved by the board. The amount of the bond shall be
23based upon a minimum of 10% 50% of the total funds received by
24the district in the last previous fiscal year. The cost of any
25surety bond shall be borne by the district. As an alternative
26to a personal bond on the treasurer, the treasurer may secure

 

 

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1for the district an insurance policy or other insurance
2instrument that provides the district with coverage for
3negligent or intentional acts by district officials and
4employees that could result in the loss of district funds. The
5coverage shall be in an amount at least equal to 10% 50% of the
6average amount of the district's operating fund from the prior
73 fiscal years. The coverage shall be placed with an insurer
8approved by the board. The cost of any such coverage shall be
9borne by the district. The system shall provide the Illinois
10State Library a copy of the district's certificate of
11insurance at the time the district's annual report is filed.
12    (f) Any person, entity, or public body or agency
13possessing district funds, property, or records shall, upon
14demand by any trustee, transfer and release the funds,
15property, or records to the treasurer.
16    (g) The secretary shall keep and maintain appropriate
17records for his or her term in office and shall include in
18those records a record of the minutes of all meetings, the
19names of those in attendance, the ordinances enacted, the
20resolutions and regulations adopted, and all other pertinent
21written matter affecting the operation of the district. The
22secretary may administer oaths and affirmations for the
23purposes of this Act.
24(Source: P.A. 97-101, eff. 1-1-12.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.