093_HB3402sam002











                                     LRB093 09164 MKM 16673 a

 1                    AMENDMENT TO HOUSE BILL 3402

 2        AMENDMENT NO.     .  Amend House Bill 3402,  AS  AMENDED,
 3    by replacing the title with the following:
 4        "AN ACT concerning local government."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5. The Illinois State Auditing Act is amended by
 8    changing Section 3-1 as follows:

 9        (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
10        Sec. 3-1. Jurisdiction of Auditor  General.  The  Auditor
11    General has jurisdiction over all State agencies to make post
12    audits  and investigations authorized by or under this Act or
13    the Constitution.
14        The  Auditor  General   has   jurisdiction   over   local
15    government agencies and private agencies only:
16             (a)  to make such post audits authorized by or under
17        this  Act as are necessary and incidental to a post audit
18        of a State agency or of a program administered by a State
19        agency involving public funds  of  the  State,  but  this
20        jurisdiction  does  not  include  any authority to review
21        local governmental agencies in the  obligation,  receipt,
 
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 1        expenditure  or use of public funds of the State that are
 2        granted without limitation or condition imposed  by  law,
 3        other than the general limitation that such funds be used
 4        for public purposes;
 5             (b)  to  make  investigations authorized by or under
 6        this Act or the Constitution; and
 7             (c)  to  make  audits  of  the  records   of   local
 8        government   agencies   to   verify   actual   costs   of
 9        state-mandated  programs  when  directed  to do so by the
10        Legislative Audit Commission at the request of the  State
11        Board of Appeals under the State Mandates Act.
12        In  addition  to  the  foregoing, the Auditor General may
13    conduct an audit of  the  Metropolitan  Pier  and  Exposition
14    Authority,   the   Regional   Transportation  Authority,  the
15    Suburban Bus Division, the Commuter  Rail  Division  and  the
16    Chicago  Transit  Authority  and any other subsidized carrier
17    when authorized by the Legislative  Audit  Commission.   Such
18    audit may be a financial, management or program audit, or any
19    combination thereof.
20        The  audit  shall determine whether they are operating in
21    accordance with all applicable laws and regulations.  Subject
22    to  the  limitations  of  this  Act,  the  Legislative  Audit
23    Commission    may    by    resolution    specify   additional
24    determinations to be included in the scope of the audit.
25        In addition to the foregoing, the  Auditor  General  must
26    also  conduct  a  financial  audit  of  the  Illinois  Sports
27    Facilities   Authority's  expenditures  of  public  funds  in
28    connection with the reconstruction,  renovation,  remodeling,
29    extension,  or improvement of all or substantially all of any
30    existing "facility", as that term is defined in the  Illinois
31    Sports Facilities Authority Act.
32        The  Auditor  General  may  also  conduct  an audit, when
33    authorized  by  the  Legislative  Audit  Commission,  of  any
34    hospital which receives 10% or more  of  its  gross  revenues
 
                            -3-      LRB093 09164 MKM 16673 a
 1    from  payments  from  the  State  of  Illinois, Department of
 2    Public Aid, Medical Assistance Program.
 3        The Auditor General is authorized  to  conduct  financial
 4    and  compliance  audits  of  the  Illinois  Distance Learning
 5    Foundation and the Illinois Conservation Foundation.
 6        As soon as practical after the  effective  date  of  this
 7    amendatory  Act  of 1995, the Auditor General shall conduct a
 8    compliance and management audit of the City  of  Chicago  and
 9    any  other  entity  with  regard  to the operation of Chicago
10    O'Hare International  Airport,  Chicago  Midway  Airport  and
11    Merrill  C.  Meigs Field. The audit shall include, but not be
12    limited  to,  an  examination  of  revenues,  expenses,   and
13    transfers  of  funds; purchasing and contracting policies and
14    practices;  staffing  levels;  and   hiring   practices   and
15    procedures.  When  completed,  the  audit  required  by  this
16    paragraph  shall  be  distributed  in accordance with Section
17    3-14.
18        The  Auditor  General  shall  conduct  a  financial   and
19    compliance  and  program  audit  of  distributions  from  the
20    Municipal  Economic  Development  Fund during the immediately
21    preceding calendar year pursuant to Section  8-403.1  of  the
22    Public  Utilities  Act  at  no  cost to the city, village, or
23    incorporated town that received the distributions.
24        The Auditor General must conduct an audit of  the  Health
25    Facilities  Planning  Board  pursuant  to Section 19.5 of the
26    Illinois Health Facilities Planning Act.
27        The Auditor General must conduct an annual audit  of  the
28    water fund of a county water commission organized pursuant to
29    the Water Commission Act of 1985.
30    (Source:  P.A.  90-813,  eff.  1-29-99;  91-782, eff. 6-9-00;
31    91-935, eff. 6-1-01.)

32        Section 10.  The Illinois Municipal Code  is  amended  by
33    changing Section 11-124-1 as follows:
 
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 1        (65 ILCS 5/11-124-1) (from Ch. 24, par. 11-124-1)
 2        Sec. 11-124-1.  Contracts for supply of water.
 3        (a)  The  corporate  authorities of each municipality may
 4    contract with any person, corporation, municipal corporation,
 5    political subdivision, public water  district  or  any  other
 6    agency  for a supply of water. Any such contract entered into
 7    by a municipality shall provide  that  payments  to  be  made
 8    thereunder  shall  be  solely from the revenues to be derived
 9    from  the  operation  of  the  waterworks   system   of   the
10    municipality,  and  the  contract shall be a continuing valid
11    and binding obligation of the municipality payable  from  the
12    revenues  derived from the operation of the waterworks system
13    of the municipality for the period of years,  not  to  exceed
14    40,  as  may  be provided in such contract. Any such contract
15    shall not be a debt within the meaning of any  constitutional
16    or  statutory  limitation.  No  prior  appropriation shall be
17    required  before  entering  into  such  a  contract  and   no
18    appropriation  shall  be required to authorize payments to be
19    made under the terms of any such contract notwithstanding any
20    provision in this Code to the contrary. (a)  Payments  to  be
21    made  under  any  such  contract  shall  be  an operation and
22    maintenance  expense  of  the  waterworks   system   of   the
23    municipality.  Any such contract made by a municipality for a
24    supply   of   water   may   contain  provisions  whereby  the
25    municipality is obligated to pay for  such  supply  of  water
26    without  setoff  or  counterclaim and irrespective of whether
27    such supply of water is ever  furnished,  made  available  or
28    delivered  to the municipality or whether any project for the
29    supply  of  water  contemplated  by  any  such  contract   is
30    completed,  operable  or  operating  and  notwithstanding any
31    suspension,   interruption,   interference,   reduction    or
32    curtailment  of  the  supply of water from such project.  Any
33    such contract may provide that if one or more  of  the  other
34    purchasers   of   water   defaults  in  the  payment  of  its
 
                            -5-      LRB093 09164 MKM 16673 a
 1    obligations under such contract or a  similar  contract  made
 2    with  the supplier of the water, one or more of the remaining
 3    purchasers party to such contract or  such  similar  contract
 4    shall  be  required  to  pay  for  all  or  a  portion of the
 5    obligations of the defaulting purchasers. (b) Payments to  be
 6    made  under  any  such contract with a municipal joint action
 7    water agency  under  the  Intergovernmental  Cooperation  Act
 8    shall   be  an  operation  and  maintenance  expense  of  the
 9    waterworks system of the  municipality.   Any  such  contract
10    made by a municipality for a supply of water with a municipal
11    joint  action  water  agency  under  the  provisions  of  the
12    Intergovernmental  Cooperation  Act  may  contain  provisions
13    whereby  the municipality is obligated to pay for such supply
14    of water without setoff or counterclaim and  irrespective  of
15    whether   such  supply  of  water  is  ever  furnished,  made
16    available or delivered to the  municipality  or  whether  any
17    project  for  the  supply  of  water contemplated by any such
18    contract   is   completed,   operable   or   operating    and
19    notwithstanding  any  suspension, interruption, interference,
20    reduction or curtailment of the supply  of  water  from  such
21    project.   Any  such  contract  with a municipal joint action
22    water agency may provide that if one or  more  of  the  other
23    purchasers   of   water   defaults  in  the  payment  of  its
24    obligations under such contract or a  similar  contract  made
25    with  the supplier of the water, one or more of the remaining
26    purchasers party to such contract or  such  similar  contract
27    shall  be  required  to  pay  for  all  or  a  portion of the
28    obligations of the defaulting purchasers.
29        The changes in this Section made by these amendatory Acts
30    of 1984 are intended to be declarative of existing law.
31        (b)  A municipality with a water supply contract  with  a
32    county  water  commission  organized  pursuant  to  the Water
33    Commission Act of 1985 shall provide water to  unincorporated
34    areas  of  that  home  county in accordance with the terms of
 
                            -6-      LRB093 09164 MKM 16673 a
 1    this subsection. The provision of water by  the  municipality
 2    shall  be  in accordance with a mandate of the home county as
 3    provided in Section 0.01 of the Water Commission Act of 1985.
 4    A home rule unit may not provide water in a  manner  that  is
 5    inconsistent  with  the  provisions of this amendatory Act of
 6    the 93rd General Assembly. This subsection  is  a  limitation
 7    under  subsection  (i)  of  Section  6  of Article VII of the
 8    Illinois Constitution on the concurrent exercise by home rule
 9    units of powers and functions exercised by the State.
10    (Source: P.A. 83-1123; 83-1524.)

11        Section 15.  The Water Commission Act of 1985 is  amended
12    by  changing  Section  2  and  by adding Sections 0.01, 0.02,
13    0.03, 0.04, and 0.05 as follows:

14        (70 ILCS 3720/2) (from Ch. 111 2/3, par. 252)
15        Sec. 2.  The General Assembly hereby finds  and  declares
16    that  it  is  necessary  and  in  the public interest to help
17    assure a sufficient and economic supply of a source of  water
18    within  those  county wide areas of this State where, because
19    of a growth  in  population  and  proximity  to  large  urban
20    centers,  the  health, safety and welfare of the residents is
21    threatened by an ever increasing shortage  of  a  continuing,
22    available  and  adequate  source  and  supply  of water on an
23    economically reasonable basis; however, it is not the  intent
24    of  the  General  Assembly  to  interfere  with  the power of
25    municipalities to provide  for  the  retail  distribution  of
26    water  to  their  residents  or  the customers of their water
27    systems.  Therefore, in order to provide for a sufficient and
28    economic supply of water to such areas, it is hereby declared
29    to be the law of this State that:
30        (a)  With respect to  any  water  commission  constituted
31    pursuant  to  Division  135 of the Illinois Municipal Code or
32    established by operation of law under Public Act 83-1123,  as
 
                            -7-      LRB093 09164 MKM 16673 a
 1    amended, which water commission includes municipalities which
 2    in the aggregate have within their corporate limits more than
 3    50% of the population of a county (hereinafter referred to as
 4    a  "home  county"), and such county is contiguous to a county
 5    which has a population in excess  of  1,000,000  inhabitants,
 6    the  provisions of this Act shall apply.  With respect to any
 7    such water commission (hereinafter referred to as  a  "county
 8    water commission"):
 9             (i)  the   terms   of   all  commissioners  of  such
10        commission holding office at the time a water  commission
11        becomes a county water commission shall terminate 30 days
12        after  such time and new commissioners shall be appointed
13        as the governing board of the county water commission  as
14        hereinafter provided in subsection (c); and
15             (ii)  the  county water commission shall continue to
16        be a body corporate and politic, and shall bear the  name
17        of  the home county but shall be independent from and not
18        a part of the county government and  shall  itself  be  a
19        political subdivision and a unit of local government, and
20        upon   appointment   of  the  new  commissioners  as  the
21        governing board of such water commission as  provided  in
22        subsection   (c),  such  water  commission  shall  remain
23        responsible  for  the  full  payment  of,  and  shall  by
24        operation of law be deemed to have assumed and shall  pay
25        when  due  all debts and obligations of the commission as
26        the same is constituted and as such debts and obligations
27        existed on the  date  such  water  commission  becomes  a
28        county  water  commission  and  such additional debts and
29        obligations as are incurred by such commission after such
30        date  and  prior  to   the   appointment   of   the   new
31        commissioners  as the governing board of such commission,
32        and further shall  continue  to  have  and  exercise  all
33        powers  and  functions  and  duties of a water commission
34        created  pursuant  to  Division  135  of   the   Illinois
 
                            -8-      LRB093 09164 MKM 16673 a
 1        Municipal  Code,  as  now  or  hereafter amended, and the
 2        county water commission may rely  on  that  Division,  as
 3        modified  and supplemented by the provisions of this Act,
 4        as lawful authority under which it may act.
 5        (b)  Any  county  water  commission  shall  have  as  its
 6    territory within its corporate limits,  subject  to  taxation
 7    for  its  purposes, and subject to the powers and limitations
 8    as conferred by this Act, (i) all of  the  territory  of  the
 9    home   county   except  that  territory  located  within  the
10    corporate limits of excluded units as hereinafter defined and
11    (ii) also all of  the  territory  located  outside  the  home
12    county  and  included  within  the  corporate  limits  of  an
13    included  unit  as hereinafter defined.  As used in this Act,
14    "excluded unit" means a unit of  local  government  having  a
15    waterworks  system  and  having  within  its corporate limits
16    territory within the home county and which, at the  time  any
17    commission  becomes  a  county water commission, receives, or
18    has contracted at such time for the receipt of, more than 25%
19    of the water distributed by such unit's water system  from  a
20    source  outside of the home county.  As used in this Section,
21    "included unit" means any unit of local government  having  a
22    waterworks  system  and  having  within  its corporate limits
23    territory  within  the  home  county,  which  unit  of  local
24    government  is  not  an  excluded  unit.   No   other   water
25    commission  shall  be  constituted  under Division 135 of the
26    Illinois  Municipal  Code  in  any  home  county  after   the
27    effective  date  of this Act to provide water from any source
28    located outside the home county.  Except as authorized  by  a
29    county  water  commission,  no  home  county or included unit
30    shall enter into any new or  renew  or  extend  any  existing
31    contract,  agreement or other arrangement for the acquisition
32    or sale of water from  any  source  located  outside  a  home
33    county;   provided,  however,  that  any  included  unit  may
34    contract for a  supply  of  water  in  case  of  a  temporary
 
                            -9-      LRB093 09164 MKM 16673 a
 1    emergency  from  any  other  unit  of local government or any
 2    entity.  In the event that any included unit elects to  serve
 3    retail  customers  outside  its  corporate  boundaries and to
 4    establish rates and charges for such water in excess of those
 5    charged within  its  corporate  boundaries,  such  rates  and
 6    charges  shall  have  a reasonable relationship to the actual
 7    cost of providing and delivering the water; this provision is
 8    declarative of existing law.  It is declared to be the law of
 9    this State pursuant to paragraphs (g) and (h) of Section 6 of
10    Article VII of the Illinois Constitution  that  in  any  home
11    county,  the  provisions  of this Act and Division 135 of the
12    Illinois Municipal Code, as modified and supplemented by this
13    Act and this amendatory Act of  the  93rd  General  Assembly,
14    constitute a limitation upon the power of any such county and
15    upon  all  units  of local government (except excluded units)
16    within such county, including home rule  units,  limiting  to
17    such  county,  units  of local government and home rule units
18    the power to  acquire,  supply  or  distribute  water  or  to
19    establish  any  water  commission for such purposes involving
20    water from any source located outside the home  county  in  a
21    manner  other  than  as provided or permitted by this Act and
22    Division 135, as modified and supplemented by this  Act,  and
23    further  constitute an exercise of exclusive State power with
24    respect to the acquisition, supply and distribution of  water
25    from  any  source located outside the home county by any such
26    county and by units  of  local  government  (except  excluded
27    units),  including  home  rule  units, within such county and
28    with respect to the establishment for such  purposes  of  any
29    water  commission  therein,  which power may not be exercised
30    concurrently by any unit of local  government  or  home  rule
31    unit.   Upon the request of any included unit, a county water
32    commission shall provide such  included  unit  Lake  Michigan
33    water  in  an  amount  up  to  the then current Department of
34    Transportation allocation of Lake  Michigan  water  for  such
 
                            -10-     LRB093 09164 MKM 16673 a
 1    included unit.
 2        With   respect   to  a  water  commission  to  which  the
 3    provisions of subsection (a) apply, all uninhabited territory
 4    that is owned and solely occupied by such a commission and is
 5    located not within its home county but within a non-home rule
 6    municipality   adjacent   to   its   home    county    shall,
 7    notwithstanding  any  other provision of law, be disconnected
 8    from that municipality  by  operation  of  this  Act  on  the
 9    effective  date  of  this  amendatory  Act of 1991, and shall
10    thereafter  no  longer  be  within  the  territory   of   the
11    municipality for any purpose; except that for the purposes of
12    any  statute  that  requires  contiguity  of  territory,  the
13    territory  of  the  water commission shall be disregarded and
14    the municipality shall not be deemed to be  noncontiguous  by
15    virtue   of   the   disconnection  of  the  water  commission
16    territory.
17        (c)  The governing body of any water commission to  which
18    the  provisions  of  subsection (a) apply shall be a board of
19    commissioners, each to be appointed within 30 days after  the
20    water  commission becomes a county water commission to a term
21    commencing on such date, as follows:
22             (i)  one commissioner, who shall serve as  chairman,
23        who  shall  be  a  resident  of  the  home  county, to be
24        appointed by the chairman of the  county  board  of  such
25        county  with  the advice and consent of the county board,
26        provided that following the expiration  of  the  term  or
27        vacancy  of the current chairman serving on the effective
28        date of this amendatory Act of the 93rd General Assembly,
29        any subsequent appointment  as  chairman  shall  also  be
30        subject  to  the  advice  and consent of the county water
31        commission;
32             (ii)  one  commissioner  from  each   county   board
33        district  within  the home county, to be appointed by the
34        chairman of the county board of the home county with  the
 
                            -11-     LRB093 09164 MKM 16673 a
 1        advice and consent of the county board; and
 2             (iii)  one   commissioner  from  each  county  board
 3        district within the home county, to be appointed  by  the
 4        majority vote of the mayors of those included units which
 5        are municipalities and which have the greatest percentage
 6        of  their  respective  populations  residing  within such
 7        county board district of the home county.
 8        The mayors of the respective county board districts shall
 9    meet for the purpose of making said  respective  appointments
10    at  a  time and place designated by that mayor in each county
11    board  district  of  the  included  unit  with  the   largest
12    population  voting  for  a commissioner upon not less than 10
13    days' written notice to each other mayor entitled to vote.
14        The commissioners so appointed shall serve for a term  of
15    6  years,  or  until their successors have been appointed and
16    have  qualified  in  the  same   manner   as   the   original
17    appointments,  except  that  at  the  first  meeting  of such
18    commissioners, (A) the commissioners first appointed pursuant
19    to paragraph (ii) of this subsection shall determine publicly
20    by lot 1/3 of their number to serve for terms of 2 years, 1/3
21    of their number to serve for terms of  4  years  and  1/3  of
22    their number to serve for terms of 6 years, any odd number of
23    commissioners  so determined by dividing into thirds to serve
24    6 year terms,  and  (B)  the  commissioners  first  appointed
25    pursuant   to   paragraph  (iii)  of  this  subsection  shall
26    determine publicly by lot 1/3 of their number  to  serve  for
27    terms of 2 years, 1/3 of their number to serve for terms of 4
28    years  and 1/3 of their number to serve for terms of 6 years,
29    any odd number of commissioners  so  determined  by  dividing
30    into  thirds  to  serve 6 year terms.  The commissioner first
31    appointed pursuant to paragraph (i) of this  subsection,  who
32    shall  serve  as chairman, shall serve for a term of 6 years.
33    Any commissioner may be a member of the governing board or an
34    officer or employee of such  county  or  any  unit  of  local
 
                            -12-     LRB093 09164 MKM 16673 a
 1    government  within  such  county.  A commissioner is eligible
 2    for reappointment upon the expiration of his term.  A vacancy
 3    in the office of a  commissioner  shall  be  filled  for  the
 4    balance   of   the   unexpired   term   by   appointment  and
 5    qualification as to residency  in  the  same  manner  as  the
 6    original  appointment  was  made.   Each  commissioner  shall
 7    receive  the  same  compensation which shall not be more than
 8    $600 per year, except that no  such  commissioner  who  is  a
 9    member  of  the  governing board or an officer or employee of
10    such county or any  unit  of  local  government  within  such
11    county   may  receive  any  compensation  for  serving  as  a
12    commissioner.   Each  commissioner  may  be  removed  by  the
13    appointing authority for any cause for which any other county
14    or municipal  officer  may  be  removed.   The  county  water
15    commission  shall  determine  its own rules of proceeding.  A
16    quorum shall be a  majority  of  the  commissioners  then  in
17    office.  All ordinances or resolutions shall be passed by not
18    less  than  a  majority  of  a  quorum.   No  commissioner or
19    employee of the commission, no member of the county board  or
20    other  official  elected  within  such  county,  no  mayor or
21    president or other member of the corporate authorities of any
22    unit of local government within such county, and no  employee
23    of such county or any such unit of local government, shall be
24    interested  directly  or indirectly in any contract or job of
25    work or materials, or the profits thereof, or services to  be
26    performed  for  or  by the commission.  A violation of any of
27    the foregoing provisions of this  subsection  is  a  Class  C
28    misdemeanor.   A  conviction  is  cause  for the removal of a
29    person from his office or employment.
30        (d)  Except as provided in subsection (g), subject to the
31    referendum provided for in subsection  (e),  a  county  water
32    commission  may  borrow  money  for corporate purposes on the
33    credit of the commission, and issue general obligation  bonds
34    therefor,  in such amounts and form and on such conditions as
 
                            -13-     LRB093 09164 MKM 16673 a
 1    it shall prescribe, but shall  not  become  indebted  in  any
 2    manner  or  for  any  purpose in an amount including existing
 3    indebtedness  in  the  aggregate  to  exceed  5.75%  of   the
 4    aggregate   value   of   the   taxable  property  within  the
 5    territorial boundaries of the  county  water  commission,  as
 6    equalized  and  assessed  by the Department of Revenue and as
 7    most recently available at the time  of  the  issue  of  said
 8    bonds.   Before or at the time of incurring any indebtedness,
 9    except as provided in subsection (g),  the  commission  shall
10    provide  for  the  collection  of  a direct annual tax, which
11    shall be unlimited as to rate or amount,  sufficient  to  pay
12    the interest on such debt as it falls due and also to pay and
13    discharge  the  principal thereof at maturity, which shall be
14    within 40 years after the date of issue thereof.    Such  tax
15    shall  be  levied  upon and collected from all of the taxable
16    property within the territory of the county water commission.
17    Dissolution of the county water  commission  for  any  reason
18    shall  not relieve the taxable property within such territory
19    of the county water commission from liability for  such  tax.
20    The  clerk  of  the commission shall file a certified copy of
21    the  resolution  or  ordinance  by  which  such   bonds   are
22    authorized  to  be  issued  and  such  tax is levied with the
23    County Clerk of each county in which any of the territory  of
24    the  county water commission is located and such filing shall
25    constitute, without the doing of  any  other  act,  full  and
26    complete  authority for each such County Clerk to extend such
27    tax for collection upon all the taxable property  within  the
28    territory  of the county water commission subject to such tax
29    in each  and  every  year  required  sufficient  to  pay  the
30    principal  of  and  interest  on  such  bonds,  as aforesaid,
31    without limit as to rate or amount, and shall be in  addition
32    to  and  in excess of all other taxes authorized to be levied
33    by  the  commission  or  any  included  unit.   The   general
34    obligation  bonds shall be issued pursuant to an ordinance or
 
                            -14-     LRB093 09164 MKM 16673 a
 1    resolution and may be issued in one or more series, and shall
 2    bear such date or dates, mature at such time or times and  in
 3    any  event  not  more than 40 years from the date thereof, be
 4    sold at such price at private or public sale as determined by
 5    a county water commission, bear  interest  at  such  rate  or
 6    rates such that the net effective interest rate received upon
 7    the  sale  of  such  bonds  does  not exceed the maximum rate
 8    determined under Section 2 of  the  Bond  Authorization  Act,
 9    which   rates   may   be   fixed  or  variable,  be  in  such
10    denominations, be in such form, either coupon or  registered,
11    carry such conversion, registration, and exchange privileges,
12    be  executed  in  such  manner,  be payable in such medium of
13    payment at such place or places within or without  the  State
14    of  Illinois,  be  subject  to  such terms of redemption, and
15    contain or be subject to such other terms as the ordinance or
16    resolution may provide, and shall not be  restricted  by  the
17    provisions  of  any  other  terms  of  obligations  of public
18    agencies or private persons.
19        (e)  No issue of general obligation  bonds  by  a  county
20    water  commission  (except bonds to refund an existing bonded
21    indebtedness)  shall  be  authorized  unless  the  commission
22    certifies the proposition of issuing such bonds to the proper
23    election officials, who shall submit the proposition  to  the
24    voters at an election in accordance with the general election
25    law,  and  the proposition has been approved by a majority of
26    those voting on the proposition.
27        The proposition shall be in the form provided in  Section
28    5 or shall be substantially in the following form:
29    -------------------------------------------------------------
30      Shall general obligation
31      bonds for the purpose of
32      (state purpose), in the           YES
33      sum of $....(insert amount),  -----------------------------
34      be issued by the .........        NO
 
                            -15-     LRB093 09164 MKM 16673 a
 1      (insert corporate name of
 2      the county water commission)?
 3    -------------------------------------------------------------
 4        (f)  In  order  to  carry  out and perform its powers and
 5    functions and duties under the provisions  of  this  Act  and
 6    Division  135 of the Illinois Municipal Code, as modified and
 7    supplemented by this Act, the governing body  of  any  county
 8    water   commission  may  by  ordinance levy annually upon all
 9    taxable property within its territory a tax at a rate not  to
10    exceed  .005%  of the value of such property, as equalized or
11    assessed by the Department of Revenue for the year  in  which
12    the  levy  is  made. In addition, any county water commission
13    may by ordinance levy upon all taxable  property  within  its
14    territory,  for  one  year  only,  an additional tax for such
15    purposes at a rate not to exceed .20% of the  value  of  such
16    property,  as  equalized  or  assessed  by  the Department of
17    Revenue for that year; provided, however, that such  tax  may
18    not be levied more than once in any county water commission.
19        (g)  Any  county water commission shall have the power to
20    borrow money, subject to the indebtedness limitation provided
21    in subsection (d), from the home county or included units, in
22    such amounts and in such terms as  agreed  by  the  governing
23    bodies  of  the  commission  and  the home county or included
24    units.
25        (h)  No county water commission constituted  pursuant  to
26    the  Act  shall  engage in the retail sale or distribution of
27    water to residents or customers of any municipality.
28        (i)  Nothing in the Section requires any municipality  to
29    contract  with  a  county  water  commission  for a supply of
30    water.
31        (j)  The State  of  Illinois  recognizes  that  any  such
32    contract  for the supply of water executed by a unit of local
33    government and a county water commission  may  contain  terms
34    and conditions intended by the parties thereto to be absolute
 
                            -16-     LRB093 09164 MKM 16673 a
 1    conditions  thereof.   The  State of Illinois also recognizes
 2    that persons may loan funds  to  a  county  water  commission
 3    (including,  without  limitation,  the purchase of revenue or
 4    general obligation bonds of such commission) in reliance upon
 5    the terms and conditions of any such contract for the  supply
 6    of  water.   Therefore,  the  State  of  Illinois pledges and
 7    agrees to those parties and persons which make loans of funds
 8    to a county water commission that it will not impair or limit
 9    the power or ability of a county water commission or  a  unit
10    of   local  government  fully  to  carry  out  the  financial
11    obligations and obligation to furnish water pursuant  to  the
12    terms of any contract for the supply of water entered into by
13    such  county water commission or unit of local government for
14    the term of such contracts or  loans.  All  other  terms  and
15    conditions of such contracts and intergovernmental agreements
16    shall be binding to the extent that they are not inconsistent
17    with this amendatory Act of the 93rd General Assembly.
18    (Source: P.A. 87-145.)

19        (70 ILCS 3720/0.01 new)
20        Sec. 0.01.  Service to areas with contaminated or tainted
21    water.
22        (a)  Notwithstanding the terms of a water supply contract
23    existing  on the effective date of this amendatory Act of the
24    93rd General Assembly, a municipality  with  a  water  supply
25    contract with a county water commission must provide water to
26    territories  outside  that  municipality,  provided  that the
27    territory to be served currently receives well water that  is
28    tainted or contaminated. The home county board must find that
29    the water supply in such territory is tainted or contaminated
30    such  that  the health of persons served in that territory is
31    likely to be adversely affected now or  in  the  future.  The
32    county water commission shall determine which municipality in
33    the  home  county  is most appropriate for supplying water to
 
                            -17-     LRB093 09164 MKM 16673 a
 1    the territory with the contaminated wells within 30 days of a
 2    county board finding that there is a tainted or  contaminated
 3    water supply.
 4        The  municipality  shall provide access to water for such
 5    territory no later  than  90  days  after  the  county  water
 6    commission has determined by resolution that the municipality
 7    is  the most appropriate municipality for providing access to
 8    water for the territory.  "Access to water"  includes  access
 9    through  the  municipal  main,  but the municipality need not
10    otherwise provide infrastructure to deliver  water  from  the
11    municipal  main.   The  municipality  may  sell water to such
12    territory at a rate higher than the rate charged to municipal
13    customers, in accordance with existing law.
14        (b)  Unless  otherwise  provided  by  law,  property   in
15    unincorporated   territory   receiving   water   pursuant  to
16    subsection (a) of this Section shall not be  annexed  without
17    consent  of  the  owner  of  the  property.  A municipality's
18    furnishing water pursuant to subsection (a) of  this  Section
19    may not be conditioned on an agreement to annex.  "Owner" for
20    the  purpose  of  this subsection is any person or persons in
21    title, or in the case of property owned in trust, having  the
22    beneficial ownership of such property, who owned the property
23    on the date water is first so received pursuant to subsection
24    (a)  of  this  Section.  Upon  transfer  of ownership of such
25    property, the municipality may annex it by ordinance.
26        (c)  This amendatory Act of the 93rd General Assembly  is
27    a limitation under subsection (i) of Section 6 of Article VII
28    of  the  Illinois  Constitution on the concurrent exercise by
29    home rule units of powers  and  functions  exercised  by  the
30    State.

31        (70 ILCS 3720/0.02 new)
32        Sec. 0.02.  Rate equalization.  Notwithstanding the terms
33    of  a water supply contract existing on the effective date of
 
                            -18-     LRB093 09164 MKM 16673 a
 1    this amendatory Act of the 93rd General Assembly, all parties
 2    to a water supply contract with a  county  water  commission,
 3    irrespective  of  whether  such  party is a charter member or
 4    subsequent entrant, shall pay rates equal to the  rates  paid
 5    by  other parties to such water supply contract and shall not
 6    pay  any  additional  fees,  costs,  or  differentials  as  a
 7    condition of becoming a party to such water supply  contract.
 8    Subsequent  entrants  to  a  water  supply contract shall pay
 9    their pro-rata portion of the original capital costs less any
10    rebates and the actual  costs  of  connection  to  the  water
11    commission system.

12        (70 ILCS 3720/0.03 new)
13        Sec.  0.03.  Water  subsidy  guaranty.  Except to satisfy
14    the obligations of persons who loaned  funds  to  the  county
15    water  commission,  the water rates charged to municipalities
16    that are in effect on the effective date of  this  amendatory
17    Act  of  the 93rd General Assembly may not be increased for a
18    period of 5 years.

19        (70 ILCS 3720/0.04 new)
20        Sec. 0.04.  Five-year annual transfer of  funds  to  home
21    county.   Beginning  July 1, 2003 and prior to July 1 of each
22    year through and including 2007, each county water commission
23    shall from any legally available sources transfer the sum  of
24    $15,000,000 to the county board of the home county to be used
25    for county purposes.  This amendatory Act of the 93rd General
26    Assembly  is  subordinate  to any legally required payment of
27    principal, interest, or  required  reserve  pursuant  to  the
28    county water commission's debt obligations.

29        (70 ILCS 3720/0.05 new)
30        Sec.  0.05.  Home rule.  A municipality, including a home
31    rule unit, must regulate its water systems and provide access
 
                            -19-     LRB093 09164 MKM 16673 a
 1    to water as required under the provisions of this  amendatory
 2    Act  of  the 93rd General Assembly.  This Section is a denial
 3    and limitation under subsection (i) of Section 6  of  Article
 4    VII  of  the Illinois Constitution on the concurrent exercise
 5    by home rule units of powers and functions exercised  by  the
 6    State.

 7        Section  90.  The State Mandates Act is amended by adding
 8    Section 8.27 as follows:

 9        (30 ILCS 805/8.27 new)
10        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
11    and  8 of this Act, no reimbursement by the State is required
12    for  the  implementation  of  any  mandate  created  by  this
13    amendatory Act of the 93rd General Assembly.

14        Section 97.  Severability.  The provisions  of  this  Act
15    are severable under Section 1.31 of the Statute on Statutes.

16        Section  99.  Effective  date. This Act takes effect upon
17    becoming law.".