HB5166 - 104th General Assembly (2025-2026)

DISSOLVE SPECIAL DISTRICTS ACT
Last Action
4/28/2026 - Senate: Assigned to Executive
Statutes Amended In Order of Appearance
New Act  
Synopsis As Introduced
Creates the Dissolution of Special Districts Act. Establishes a method for the dissolution of special districts. Provides that a special district may dissolve upon the affirmative majority vote of its own governing body and the affirmative majority vote of a receiving unit of local government. Provides that, on or before the date of dissolution, all real and personal property, and any other assets, together with all personnel, contractual obligations, and liabilities of the dissolving special district shall be transferred to the receiving unit of local government. Provides that, on the date of dissolution, the dissolving special district is dissolved. Provides that, on and after the date of dissolution, all rights and duties of the dissolving special district may be exercised by the receiving unit of local government. Provides that, before the date of dissolution, the receiving unit of local government shall submit a service continuation plan confirming that the receiving unit of local government has the resources to continue providing the services provided by the dissolving special district. Effective immediately.

House Committee Amendment No. 1
Deletes reference to:
New Act  
Adds reference to:
70 ILCS 605/10-3.5 new  
70 ILCS 2205/28.5 new  
70 ILCS 2305/30.5 new  
70 ILCS 2405/27.5 new  
70 ILCS 2805/33.2 new  
70 ILCS 2905/2-10.5 new  
70 ILCS 3020/25 new  
Replaces everything after the enacting clause. Amends the Illinois Drainage Code. Provides that a district having fewer than 1,000,000 inhabitants shall be dissolved upon the affirmative vote of (1) a majority of the commissioners of a district to dissolve the district on a specified date of dissolution and transfer the district's rights, duties, and liabilities to a receiving unit of local government on or before a specified date of dissolution and (2) a majority of the governing body of the receiving unit of local government to receive the rights, duties, and liabilities of the dissolving district on or before a specified date of dissolution. Provides that, on or before the date of dissolution, all real and personal property, and any other assets, together with all personnel, contractual obligations, and liabilities of the dissolving district shall be transferred to the receiving unit of local government. Provides that, on the date of dissolution, the dissolving district is dissolved. Provides that, on and after the date of dissolution, all rights and duties of the dissolving district may be exercised by the receiving unit of local government. Provides that, before the date of dissolution, the receiving unit of local government shall submit a service continuation plan confirming that the receiving unit of local government has the resources to continue providing the services provided by the dissolving district. Defines terms. Amends the Sanitary District Act of 1907, the North Shore Water Reclamation District Act, the Sanitary District Act of 1917, the Sanitary District Act of 1936, the Metro-East Sanitary District Act of 1974, and the Eastern Will Sanitary District Act. Adds similar provisions for sanitary districts organized under those Acts.

House Floor Amendment No. 3
Deletes reference to:
70 ILCS 2205/28.5 new  
70 ILCS 2305/30.5 new  
70 ILCS 2405/27.5 new  
70 ILCS 2905/2-10.5 new  
70 ILCS 3020/25 new  
Replaces everything after the enacting clause. Deletes changes to the Sanitary District Act of 1907, the North Shore Water Reclamation District Act, the Sanitary District of 1917, and the Metro-East Sanitary District Act of 1974. In provisions concerning the dissolution of sanitary and drainage districts, provides that the dissolution procedures described in the amendatory Act apply to drainage and sanitary districts operated under the Illinois Drainage Code or the Sanitary District Act of 1936 in a county that has more than 650,000 but fewer than 1,000,000 inhabitants (rather than to sanitary districts operated under the Illinois Drainage Code or the Sanitary District Act of 1936 in a county with fewer than 1,000,000 inhabitants). Makes changes concerning information that must be supplied to the Department of Revenue following the dissolution of such a district. Effective immediately.
Actions
DateChamberAction
2/05/2026HouseFiled with the Clerk by Rep. Lawrence "Larry" Walsh, Jr.
2/10/2026HouseFirst Reading
2/10/2026HouseReferred to Rules Committee
3/12/2026HouseAssigned to Counties & Townships Committee
3/24/2026HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Lawrence "Larry" Walsh, Jr.
3/24/2026HouseHouse Committee Amendment No. 1 Referred to Rules Committee
3/25/2026HouseHouse Committee Amendment No. 1 Rules Refers to Counties & Townships Committee
3/26/2026HouseHouse Committee Amendment No. 1 Adopted in Counties & Townships Committee; by Voice Vote
3/26/2026HouseDo Pass as Amended / Short Debate Counties & Townships Committee; 007-004-000
3/26/2026HouseAdded Chief Co-Sponsor Rep. Suzanne M. Ness
3/26/2026HousePlaced on Calendar 2nd Reading - Short Debate
4/10/2026HouseSecond Reading - Short Debate
4/10/2026HouseHeld on Calendar Order of Second Reading - Short Debate
4/14/2026HouseHouse Floor Amendment No. 2 Filed with Clerk by Rep. Lawrence "Larry" Walsh, Jr.
4/14/2026HouseHouse Floor Amendment No. 2 Referred to Rules Committee
4/14/2026HouseHouse Floor Amendment No. 2 Rules Refers to Counties & Townships Committee
4/15/2026HouseHouse Floor Amendment No. 3 Filed with Clerk by Rep. Lawrence "Larry" Walsh, Jr.
4/15/2026HouseHouse Floor Amendment No. 3 Referred to Rules Committee
4/15/2026HouseHouse Floor Amendment No. 3 Rules Refers to Counties & Townships Committee
4/16/2026HouseHouse Floor Amendment No. 3 Recommends Be Adopted Counties & Townships Committee; 011-000-000
4/16/2026HouseHouse Floor Amendment No. 3 Adopted
4/16/2026HousePlaced on Calendar Order of 3rd Reading - Short Debate
4/16/2026HouseThird Reading - Short Debate - Passed 105-000-000
4/16/2026HouseHouse Floor Amendment No. 2 Tabled
4/16/2026HouseAdded Chief Co-Sponsor Rep. Laura Faver Dias
4/21/2026SenateArrive in Senate
4/21/2026SenatePlaced on Calendar Order of First Reading
4/21/2026SenateChief Senate Sponsor Sen. Meg Loughran Cappel
4/21/2026SenateFirst Reading
4/21/2026SenateReferred to Assignments
4/28/2026SenateAssigned to Executive