HB4371 EngrossedLRB099 13772 AWJ 37740 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 Water Authorities Act is amended by changing
5Section 28 as follows:
 
6    (70 ILCS 3715/28)
7    Sec. 28. Cessation or dissolution of authority
8organization.
9    (a) Notwithstanding any other provision of law, if a
10majority vote of the board of trustees is in favor of the
11proposition to annex the authority to another authority whose
12boundaries are contiguous, or consolidate the authority into a
13municipality with which the authority is coterminous or
14substantially coterminous, or consolidate the authority into
15the county in which the authority sits if the authority
16contains territory within only one county, and if the governing
17authorities of the governmental unit assuming the functions of
18the former authority agree by resolution to accept the
19functions (and jurisdiction over the territory, if applicable)
20of the consolidated or annexed authority, then the authority
21shall cease. On the effective date of the annexation or
22consolidation, all the rights, powers, duties, assets,
23property, liabilities, indebtedness, obligations, bonding

 

 

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1authority, taxing authority, and responsibilities of the
2authority shall vest in and be assumed by the governmental unit
3assuming the functions of the former authority.
4    The employees of the former authority shall be transferred
5to the governmental unit assuming the functions of the former
6authority. The governmental unit assuming the functions of the
7former authority shall exercise the rights and
8responsibilities of the former authority with respect to those
9employees. The status and rights of the employees of the former
10authority under any applicable contracts or collective
11bargaining agreements, historical representation rights under
12the Illinois Public Labor Relations Act, or under any pension,
13retirement, or annuity plan shall not be affected by this
14amendatory Act.
15    (b) Any authority created under this Act, other than an
16authority servicing any part of the City of Chicago, which does
17not have any outstanding and unpaid revenue bonds issued under
18this Act may be dissolved any time after a date which is 4
19years after the date of its creation as follows:
20    Any 500 electors residing within the area of the authority
21may petition the circuit court to order submitted to referendum
22the question whether the authority should be dissolved. Upon
23the filing of the petition, and the determination that it is in
24accordance with the general election law, the circuit court
25shall: designate the election at which this question is to be
26submitted; order notice of the referendum in the manner

 

 

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1provided by the general election law; and certify the
2proposition to the proper election officials for submission in
3accordance with the general election law.
4    The proposition shall be in substantially the following
5form:
 
6------------------------------------------------------------- 
7    "Shall the (name of                         YES 
8    water authority)                       -------------- 
9    be dissolved?"                               NO 
10------------------------------------------------------------- 
 
11    If a majority of the votes cast on this question are in
12favor of dissolution of the authority under this subsection,
13then such organization shall cease, the authority is dissolved,
14and the circuit court shall direct the discharge of all
15outstanding obligations.
16    If the vote is in favor of dissolution of the authority
17under this subsection, there shall be no further appointments
18or elections for trustees. Except as otherwise provided for in
19this subsection, the trustees acting at the time of this vote
20shall close up the business affairs of the district and make
21the necessary conveyances of the title to the district
22property. The terms of the trustees acting at the time of a
23vote in favor of dissolution are extended until the business
24affairs are closed up and conveyances of title are completed.

 

 

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1    To the extent that the authority has entered into a
2multiyear lease on a real property asset (including, but not
3limited to, surface water property) that it possesses, the
4court, upon application of the trustees, may order the trustees
5to arrange the transfer of such real property asset, instead of
6liquidating the real property asset, to a unit of local
7government with legal authority to operate the real property
8asset. Such transfer may be made with or without compensation
9in the discretion of the court in accordance with this
10paragraph. In determining whether compensation shall be paid,
11the court shall determine if the same or substantially similar
12groups of citizens will benefit from the real property asset
13after transfer. To the extent that the same or substantially
14similar groups of citizens will continue to benefit from the
15real property asset, the court is not required to order
16compensation paid by the receiving unit of local government to
17the authority. To the extent that a substantial change occurs
18to the groups of citizens that will benefit from the real
19property asset after the transfer, the court shall determine,
20after receiving input from the trustees and the unit of local
21government, an equitable method of compensation, after
22receiving input from the trustees and the unit of local
23government, to be received from the unit of local government to
24whom the real property asset is being transferred. The court
25shall liberally construe this provision to provide for an
26equitable determination of relative benefit.

 

 

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1    If the vote is against dissolution of the authority, no
2petition for a referendum under this subsection may be filed
3within 4 years of the previous referendum.
4    The dissolution of any authority under this subsection does
5not affect the obligation of any bonds issued or contracts
6entered into by such authority, nor invalidate the levy,
7extension or collection of any taxes upon the property in the
8debtor authority, but all such bonds and contracts shall be
9fulfilled or repaid as required under the terms of the bonds or
10contracts.
11    All money remaining after the business affairs of the
12authority have been closed up and all the debts and obligations
13of the authority have been paid under this subsection, shall be
14paid to the township or townships in which such authority is
15situated, or the county or counties of any portion of such
16authority that is situated outside of a township, in the
17proportion that the taxable value the real property in the
18authority situated in each township or county bears to the
19taxable value of all the real property in the authority.
20    All courts shall take judicial notice of the dissolution of
21such authority.
22(Source: P.A. 98-1002, eff. 8-18-14.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.