HB5050 103RD GENERAL ASSEMBLY

LRB103 36381 AWJ 66482 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5050

Introduced 2/8/2024, by Rep. Natalie A. Manley

SYNOPSIS AS INTRODUCED:

55 ILCS 5/5-44020
55 ILCS 5/5-44027 new
55 ILCS 5/5-44030
55 ILCS 5/5-44035
55 ILCS 5/5-44040
55 ILCS 5/5-44043
55 ILCS 5/5-44045
55 ILCS 5/5-44050
55 ILCS 5/5-44055

Amends the Local Government Reduction and Efficiency Division of the Counties Code. Defines "district" as a township road and bridge district, sanitary district, drainage district, mosquito abatement district, or street light district. Provides that a county board may enact a resolution or ordinance or a county executive may issue an executive order to dissolve a district, but must first adopt or issue a plan that describes how the county will absorb and implement the services provided by the district, that provides a reason to discontinue the services provided, that describes how the county will pay for the transfer of services, and that shows long-term savings for taxpayers and file that plan with the State Comptroller. Provides that the State Comptroller may approve or deny the dissolution of the district based on the contents of the plan. Provides that, if the dissolution and transfer is approved by the State Comptroller, the county board may adopt a resolution or ordinance or a county executive may issue an executive order authorizing the dissolution of the district not less than 60 days following the court's appointment of a trustee-in-dissolution. Includes procedures for the dissolution of the district and designation of individuals to represent the district. Provides that the county must provide quarterly updates to the State Comptroller and that the State Comptroller shall publish those quarterly updates on the State Comptroller's local government Warehouse database. Makes conforming changes in the Division.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Counties Code is amended by changing Sections 5-44020, 5-44030, 5-44035, 5-44040, 5-44043, 5-44045, 5-44050, and 5-44055 and by adding Section 5-44027 as follows:

(55 ILCS 5/5-44020)

Sec. 5-44020. Definitions. In this Division 5-44:

"District" means a township road and bridge district, sanitary district, drainage district, mosquito abatement district, or street light district, notwithstanding how a district's governing board is appointed or elected.

"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 or district.

"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, a conservation district organized under the Conservation District Act, a special district organized under the Water Commission Act of 1985, a community mental health board established under the Community Mental Health Board Act, or a board established under the Community Care for Persons with Developmental Disabilities Act.

(Source: P.A. 99-709, eff. 8-5-16; 100-107, eff. 1-1-18; 100-1129, eff. 1-1-19.)

(55 ILCS 5/5-44027 new)

Sec. 5-44027. Dissolution of districts.

(a) A county board or county executive may dissolve a district as provided in this Section.

(b) Before a county board may enact a resolution or ordinance or a county executive may issue an executive order to dissolve a district under this Section, the county board or county executive must adopt or issue a plan that describes how the county will absorb and implement the services provided by the district, that provides a reason to discontinue the services provided, that describes how the county will pay for the transfer of services, and that shows long-term savings for taxpayers. The plan must be filed with the State Comptroller. The State Comptroller may approve or deny the dissolution of the district based on the contents of the plan.

(c) If the dissolution and transfer is approved by the State Comptroller, the county board may adopt a resolution or ordinance or a county executive may issue an executive order authorizing the dissolution of the district not less than 60 days following the court's appointment of a trustee-in-dissolution as provided in this subsection. Upon adoption of the resolution or ordinance or the issuance of an executive order, the chairperson of the county board or county executive shall petition the circuit court for an order designating a trustee-in-dissolution for the district, immediately terminating the terms of the members of the governing board of the district, and providing for the compensation of the trustee-in-dissolution, which shall be paid from the corporate funds of the district.

(d) Upon the court's appointment of a trustee-in-dissolution, and notwithstanding any other provision of law, the State's attorney, or the State's attorney's designee, shall become the exclusive legal representative of the dissolving district. The county treasurer shall become the treasurer of the district and the county clerk shall become the secretary of the district.

(e) The county must provide quarterly updates to the State Comptroller, and the State Comptroller shall publish those quarterly updates on the State Comptroller's local government Warehouse database.

(55 ILCS 5/5-44030)

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 or district 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 or district'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 or district to the county board for its approval. The plan shall identify what functions, if any, of the unit of local government or district 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;

(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 or district to the county as may be required to facilitate the transition; and

(6) to sell the property of the unit or district and, in case any excess remains after all liabilities of the unit or district 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 or district, 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 unit or 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.

(Source: P.A. 98-126, eff. 8-2-13.)

(55 ILCS 5/5-44035)

Sec. 5-44035. Outstanding indebtedness.

(a) In case any unit or district 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 shall be transferred into the general funds of the county.

(b) In case any unit or district dissolved pursuant to this Division has unsecured debts outstanding at the time of dissolution, any funds in the treasury of such unit or district 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 local government or district 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.

(Source: P.A. 98-126, eff. 8-2-13.)

(55 ILCS 5/5-44040)

Sec. 5-44040. Effect of dissolution. Immediately upon the dissolution of a unit of local government or district pursuant to this Division:

(a) Notwithstanding the provisions of the Special Service Area Tax Law of the Property Tax Code that pertain to the establishment of special service areas, all or part of the territory formerly served by the dissolved unit of local government or district 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 or district if the dissolved unit or district 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 or district 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 or district within the special service area. However, the governing board shall not have 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.

(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.

(Source: P.A. 98-126, eff. 8-2-13.)

(55 ILCS 5/5-44043)

Sec. 5-44043. Rights and obligations of employees.

(a) The status and rights of employees represented by an exclusive bargaining representative shall not be affected by the dissolution of a unit of local government or district under this Division, except that this subsection does not apply in DuPage, Lake, and McHenry Counties for actions taken before the effective date of this amendatory Act of the 100th General Assembly.

(b) Obligations of the dissolving unit of local government or district assumed by the trustee-in-dissolution, county, or governing body of a special service area include the obligation to honor representation rights under the Illinois Public Labor Relations Act and any collective bargaining agreements existing on the date of dissolution of the unit of local government or district.

(c) The rights of employees under any pensions, retirement plans, or annuity plans existing on the date of dissolution of the unit of local government or district are not affected by the dissolution of a unit of local government or district under this Division.

(Source: P.A. 100-107, eff. 1-1-18.)

(55 ILCS 5/5-44045)

Sec. 5-44045. Abatement of levy. Whenever a county has dissolved a unit of local government or district pursuant to this Division, 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.

(Source: P.A. 98-126, eff. 8-2-13.)

(55 ILCS 5/5-44050)

Sec. 5-44050. Tax collection and enforcement. The dissolution of a unit of local government or district 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 used for the purpose for which the tax was levied or assessed. Proceedings to collect and enforce such taxes may be instituted and carried on in the name of the unit or district.

(Source: P.A. 98-126, eff. 8-2-13.)

(55 ILCS 5/5-44055)

Sec. 5-44055. Litigation. All suits pending in any court on behalf of or against a unit or district dissolved pursuant to this Division may be prosecuted or defended in the name of the county by the State's attorney. All judgments obtained for a unit or district dissolved pursuant to this Division shall be collected and enforced by the county for its benefit.

(Source: P.A. 98-126, eff. 8-2-13.)