Rep. Michael J. Zalewski

Filed: 3/16/2011

 

 


 

 


 
09700HB1218ham001LRB097 00543 PJG 53177 a

1
AMENDMENT TO HOUSE BILL 1218

2    AMENDMENT NO. ______. Amend House Bill 1218 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Sections 1-120, 21-110, 21-115, 21-118, 21-165, 21-205,
621-225, 21-305, 21-398, 22-5, 22-10, and 22-25 as follows:
 
7    (35 ILCS 200/1-120)
8    Sec. 1-120. Property Index Number or Permanent Index
9Number; PIN. A number used to identify a parcel of property for
10assessment and taxation purposes. The index number shall
11constitute a sufficient description of the property to which it
12has been assigned, wherever a description is required by this
13Code. "Property Index Number" and "Permanent Index Number"
14shall be construed to be interchangeable terms.
15    The changes to this Section made by this amendatory Act of
16the 97th General Assembly shall be construed as being

 

 

09700HB1218ham001- 2 -LRB097 00543 PJG 53177 a

1declaratory of existing law and not as a new enactment.
2(Source: P.A. 88-455.)
 
3    (35 ILCS 200/21-110)
4    Sec. 21-110. Published notice of annual application for
5judgment and sale; delinquent taxes. At any time after all
6taxes have become delinquent in any year, the Collector shall
7publish an advertisement, giving notice of the intended
8application for judgment and sale of the delinquent properties.
9The advertisement shall include the street address and PIN
10number of each delinquent property. Except as provided below,
11the advertisement shall be in a newspaper published in the
12township or road district in which the properties are located.
13If there is no newspaper published in the township or road
14district, then the notice shall be published in some newspaper
15in the same county as the township or road district, to be
16selected by the county collector. When the property is in a
17city with more than 1,000,000 inhabitants, the advertisement
18may be in any newspaper published in the same county. When the
19property is in an incorporated town which has superseded a
20civil township, the advertisement shall be in a newspaper
21published in the incorporated town or if there is no such
22newspaper, then in a newspaper published in the county.
23    The provisions of this Section relating to the time when
24the Collector shall advertise intended application for
25judgment for sale are subject to modification by the governing

 

 

09700HB1218ham001- 3 -LRB097 00543 PJG 53177 a

1authority of a county in accordance with the provisions of
2subsection (c) of Section 21-40.
3(Source: P.A. 88-455; 88-518; 89-126, eff. 7-11-95.)
 
4    (35 ILCS 200/21-115)
5    Sec. 21-115. Times of publication of notice. The
6advertisement shall be published once at least (i) 10 days
7before the day on which judgment is to be applied for in Cook
8County and (ii) 30 days before the day on which judgment is to
9be applied for in all other counties, and shall contain a list
10of the delinquent properties upon which the taxes or any part
11thereof remain due and unpaid, the names of owners, if known,
12the total amount due, and the year or years for which they are
13due. In counties of less than 3,000,000 inhabitants,
14advertisement shall include notice of the registration
15requirement for persons bidding at the sale. Properties upon
16which taxes have been paid in full under protest shall not be
17included in the list.
18    The collector shall give notice that he or she will apply
19to the circuit court on a specified day for judgment against
20the properties for the taxes, and costs, and for an order to
21sell the properties for the satisfaction of the amount due.
22    The collector shall also give notice of a date within the
23next 5 business days after the date of application on which all
24the properties for the sale of which an order is made will be
25exposed to public sale at a location within the county

 

 

09700HB1218ham001- 4 -LRB097 00543 PJG 53177 a

1designated by the county collector, for the amount of taxes,
2and cost due. The advertisement published according to the
3provisions of this Section shall be deemed to be sufficient
4notice of the intended application for judgment and of the sale
5of properties under the order of the court. Notwithstanding the
6provisions of this Section and Section 21-110, in the 10 years
7following the completion of a general reassessment of property
8in any county with 3,000,000 or more inhabitants, made under an
9order of the Department, the publication shall be made not
10sooner than 10 days nor more than 90 days after the date when
11all unpaid taxes on property have become delinquent.
12(Source: P.A. 88-455; 89-126, eff. 7-11-95; 89-426, eff.
136-1-96; 89-626, eff. 8-9-96.)
 
14    (35 ILCS 200/21-118 new)
15    Sec. 21-118. Tax sale; online database. At least 10 days
16prior to any tax sale authorized under this Article 21, the
17county collector of a county with a population of 10,000 or
18more, according to the most recent federal decennial census,
19shall post on his or her website a list of all properties that
20are eligible to be sold at the sale. The list shall include the
21street address and PIN number assigned to the property.
 
22    (35 ILCS 200/21-165)
23    Sec. 21-165. Payment of delinquent tax before sale. Any
24person owning or claiming properties upon which application for

 

 

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1judgment is applied for and any lienholder of record may, in
2person or by agent, pay the taxes, and costs due, or in
3counties with 3,000,000 or more inhabitants, the taxes, special
4assessments, interest and costs due, to the county collector at
5any time on or before the calendar day immediately preceding
6the day the taxes are sold, and the collector must accept those
7payments. A home rule unit may not regulate the hours and
8procedures employed by the county collector in a manner that is
9inconsistent with this Section. No deadline for the payment of
10taxes, special assessments, interest, or costs may be imposed
11by any county, including a home rule unit, if the deadline is
12inconsistent with this Section. This Section is a limitation
13under subsection (i) of Section 6 of Article VII of the
14Illinois Constitution on the concurrent exercise by home rule
15units of powers and functions exercised by the State. sale.
16(Source: P.A. 92-267, eff. 1-1-02.)
 
17    (35 ILCS 200/21-205)
18    Sec. 21-205. Tax sale procedures. The collector, in person
19or by deputy, shall attend, on the day and in the place
20specified in the notice for the sale of property for taxes, and
21shall, between 9:00 a.m. and 4:00 p.m., or later at the
22collector's discretion, proceed to offer for sale, separately
23and in consecutive order, all property in the list on which the
24taxes, special assessments, interest or costs have not been
25paid. However, in any county with 3,000,000 or more

 

 

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1inhabitants, the offer for sale shall be made between 8:00 a.m.
2and 8:00 p.m. The collector's office shall be kept open during
3all hours in which the sale is in progress. The sale shall be
4continued from day to day, until all property in the delinquent
5list has been offered for sale. However, any city, village or
6incorporated town interested in the collection of any tax or
7special assessment, may, in default of bidders, withdraw from
8collection the special assessment levied against any property
9by the corporate authorities of the city, village or
10incorporated town. In case of a withdrawal, there shall be no
11sale of that property on account of the delinquent special
12assessment thereon.
13    Until January 1, 2013, in In every sale of property
14pursuant to the provisions of this Code, the collector may
15employ any automated means that the collector deems
16appropriate. Beginning on January 1, 2013, the collector shall
17employ an automated bidding system that is programmed to accept
18the lowest redemption price bid by a tax purchaser, subject to
19the penalty percentage limitation set forth in Section 21-215.
20All , provided that bidders are required to personally attend
21the sale and the automated means must be certified by the
22Department. The changes made by this amendatory Act of the 94th
23General Assembly are declarative of existing law.
24(Source: P.A. 94-922, eff. 1-1-07.)
 
25    (35 ILCS 200/21-225)

 

 

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1    Sec. 21-225. Forfeited property. Every property offered at
2public sale, and not sold for want of bidders, unless it is
3released from sale by the withdrawal from collection of a
4special assessment levied thereon, shall be forfeited to the
5State of Illinois. However, when the court, county clerk and
6county treasurer certify that the taxes and special assessments
7not withdrawn from collection on forfeited property equal or
8exceed the actual value of the property, the county collector
9shall, on the receipt of such certificate, offer the property
10for sale to the highest bidder, after first giving 10 days'
11notice in counties with less than 10,000 inhabitants, according
12to the most recent federal decennial census, and 30 days'
13notice in all other counties, in the manner described in
14Sections 21-110 and 21-115, of the time and place of sale,
15together with a description of the property to be offered. A
16certificate of purchase shall be issued to the purchaser at the
17sale as in other cases provided in this Code. The county
18collector shall receive credit in the settlement with the
19taxing bodies for which the tax was levied for the amount not
20realized by the sale. The amount received from the sale shall
21be paid by the collector, pro rata, to the taxing bodies
22entitled to it.
23(Source: Laws 1965, p. 631; P.A. 88-455.)
 
24    (35 ILCS 200/21-305)
25    Sec. 21-305. Payments from Indemnity Fund.

 

 

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1    (a) Any owner of property sold under any provision of this
2Code who sustains loss or damage by reason of the issuance of a
3tax deed under Section 21-445 or 22-40 and who is barred or is
4in any way precluded from bringing an action for the recovery
5of the property shall have the right to indemnity for the loss
6or damage sustained, limited as follows:
7        (1) An owner who resided on property that contained 4
8    or less dwelling units on the last day of the period of
9    redemption and who is equitably entitled to compensation
10    for the loss or damage sustained has the right to
11    indemnity. An equitable indemnity award shall be limited to
12    the fair cash value of the property as of the date the tax
13    deed was issued less any mortgages or liens on the
14    property, and the award will not exceed $99,000. The Court
15    shall liberally construe this equitable entitlement
16    standard to provide compensation wherever, in the
17    discretion of the Court, the equities warrant the action.
18        An owner of a property that contained 4 or less
19    dwelling units who requests an award in excess of $99,000
20    must prove that the loss of his or her property was not
21    attributable to his or her own fault or negligence before
22    an award in excess of $99,000 will be granted.
23        (2) An owner who sustains the loss or damage of any
24    property occasioned by reason of the issuance of a tax
25    deed, without fault or negligence of his or her own, has
26    the right to indemnity limited to the fair cash value of

 

 

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1    the property less any mortgages or liens on the property.
2    In determining the existence of fault or negligence, the
3    court shall consider whether the owner exercised ordinary
4    reasonable diligence under all of the relevant
5    circumstances.
6        (3) In determining the fair cash value of property less
7    any mortgages or liens on the property, the fair cash value
8    shall be reduced by the principal amount of all taxes paid
9    by the tax purchaser or his or her assignee before the
10    issuance of the tax deed.
11        (4) If an award made under paragraph (1) or (2) is
12    subject to a reduction by the amount of an outstanding
13    mortgage or lien on the property, other than the principal
14    amount of all taxes paid by the tax purchaser or his or her
15    assignee before the issuance of the tax deed and the
16    petitioner would be personally liable to the mortgagee or
17    lienholder for all or part of that reduction amount, the
18    court shall order an additional indemnity award to be paid
19    directly to the mortgagee or lienholder sufficient to
20    discharge the petitioner's personal liability. The court,
21    in its discretion, may order the joinder of the mortgagee
22    or lienholder as an additional party to the indemnity
23    action.
24    (b) Indemnity fund; subrogation.
25        (1) Any person claiming indemnity hereunder shall
26    petition the Court which ordered the tax deed to issue,

 

 

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1    shall name the County Treasurer, as Trustee of the
2    indemnity fund, as defendant to the petition, and shall ask
3    that judgment be entered against the County Treasurer, as
4    Trustee, in the amount of the indemnity sought. The
5    provisions of the Civil Practice Law shall apply to
6    proceedings under the petition, except that neither the
7    petitioner nor County Treasurer shall be entitled to trial
8    by jury on the issues presented in the petition. The Court
9    shall liberally construe this Section to provide
10    compensation wherever in the discretion of the Court the
11    equities warrant such action.
12        (2) The County Treasurer, as Trustee of the indemnity
13    fund, shall be subrogated to all parties in whose favor
14    judgment may be rendered against him or her, and by third
15    party complaint may bring in as a defendant any person,
16    other than the tax deed grantee and its successors in
17    title, not a party to the action who is or may be liable to
18    him or her, as subrogee, for all or part of the
19    petitioner's claim against him or her.
20    (c) Any contract involving the proceeds of a judgment for
21indemnity under this Section, between the tax deed grantee or
22its successors in title and the indemnity petitioner or his or
23her successors, shall be in writing. In any action brought
24under Section 21-305, the Collector shall be entitled to
25discovery regarding, but not limited to, the following:
26        (1) the identity of all persons beneficially

 

 

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1    interested in the contract, directly or indirectly,
2    including at least the following information: the names and
3    addresses of any natural persons; the place of
4    incorporation of any corporation and the names and
5    addresses of its shareholders unless it is publicly held;
6    the names and addresses of all general and limited partners
7    of any partnership; the names and addresses of all persons
8    having an ownership interest in any entity doing business
9    under an assumed name, and the county in which the assumed
10    business name is registered; and the nature and extent of
11    the interest in the contract of each person identified;
12        (2) the time period during which the contract was
13    negotiated and agreed upon, from the date of the first
14    direct or indirect contact between any of the contracting
15    parties to the date of its execution;
16        (3) the name and address of each natural person who
17    took part in negotiating the contract, and the identity and
18    relationship of the party that the person represented in
19    the negotiations; and
20        (4) the existence of an agreement for payment of
21    attorney's fees by or on behalf of each party.
22    Any information disclosed during discovery may be subject
23to protective order as deemed appropriate by the court. The
24terms of the contract shall not be used as evidence of value.
25    (d) A petition of indemnity under this Section must be
26filed within 10 years after the date the tax deed was issued.

 

 

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1(Source: P.A. 91-564, eff. 8-14-99.)
 
2    (35 ILCS 200/21-398 new)
3    Sec. 21-398. Payments to certificate holders.
4    (a) Except as provided in subsections (b), (c), and (d),
5the county clerk shall distribute any redemption payments,
6along with any accrued interest and penalties, to the holder of
7the certificate of purchase (i) within 15 business days after
8payment is received from the redeeming party or (ii) upon
9surrender of the certificate of purchase by the certificate
10holder, whichever occurs later. The county clerk shall notify
11the certificate holder within 5 business days, either
12electronically or in writing, that the taxes have been
13redeemed.
14    (b) If a payment is made under protest as provided in
15Section 21-380 of this Code, then the county clerk shall
16distribute the redemption money to the holder of the
17certificate of purchase within 15 business days after a
18certified copy of the court order directing the county clerk to
19make such a distribution is presented to the county clerk.
20    (c) Partial redemption payments shall be distributed as
21provided in Section 21-375.
22    (d) If an order is entered setting aside a redemption, then
23any prior distributions to the holder of the certificate of
24purchase must be refunded to the county clerk and redemption
25payments shall be distributed as provided in Section 21-397.

 

 

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1    (e) If the certificate of purchase is assigned or
2reassigned to any party other than the tax purchaser, then the
3tax purchaser must notify the county clerk of that fact within
415 business days after the reassignment occurs.
5    (f) This Section does not apply in counties with more than
63,000,000 inhabitants.
 
7    (35 ILCS 200/22-5)
8    Sec. 22-5. Notice of sale and redemption rights. In order
9to be entitled to a tax deed, within 4 months and 15 days after
10any sale held under this Code, the purchaser or his or her
11assignee shall deliver to the county clerk a notice to be given
12to the party in whose name the taxes are last assessed as shown
13by the most recent tax collector's warrant books, in at least
1410 point type in the following form completely filled in:
15
TAKE NOTICE
16    County of ...............................................
17    Date Premises Sold ......................................
18    Certificate No. .........................................
19    Sold for General Taxes of (year) ........................
20    Sold for Special Assessment of (Municipality)
21    and special assessment number ...........................
22    Warrant No. ............... Inst. No. .................
23
THIS PROPERTY HAS BEEN SOLD FOR
24
DELINQUENT TAXES
25Property located at .........................................

 

 

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1Legal Description or Property Permanent Index No. ............
2.............................................................
3.............................................................
4    This notice is to advise you that the above property has
5been sold for delinquent taxes and that the period of
6redemption from the sale will expire on .....................
7    This notice is also to advise you that a petition will be
8filed for a tax deed which will transfer title and the right to
9possession of this property if redemption is not made on or
10before ......................................................
11    At the date of this notice the total amount which you must
12pay in order to redeem the above property is ................
13
YOU ARE URGED TO REDEEM IMMEDIATELY TO
14
PREVENT LOSS OF PROPERTY
15    Redemption can be made at any time on or before .... by
16applying to the County Clerk of .... County, Illinois at the
17Office of the County Clerk County Court House in ....,
18Illinois.
19    The above amount is subject to increase at 6 month
20intervals from the date of sale. Check with the county clerk as
21to the exact amount you owe before redeeming. Payment must be
22made by certified check, cashier's check, money order, or in
23cash.
24    For further information contact the County Clerk
25ADDRESS:............................
26TELEPHONE:..........................
 

 

 

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1
...............................
2
Purchaser or Assignee
3
Dated (insert date).

 
4    Within 10 days after receipt of said notice, the county
5clerk shall mail to the addresses supplied by the purchaser or
6assignee, by registered or certified mail, copies of said
7notice to the party in whose name the taxes are last assessed
8as shown by the most recent tax collector's warrant books. The
9purchaser or assignee shall pay to the clerk postage plus the
10sum of $10. The clerk shall write or stamp the date of
11receiving the notices upon the copies of the notices, and
12retain one copy.
13    The changes to this Section made by this amendatory Act of
14the 97th General Assembly apply only to tax sales that occur on
15or after the effective date of this amendatory Act of the 97th
16General Assembly.
17(Source: P.A. 94-380, eff. 7-29-05.)
 
18    (35 ILCS 200/22-10)
19    Sec. 22-10. Notice of expiration of period of redemption. A
20purchaser or assignee shall not be entitled to a tax deed to
21the property sold unless, not less than 3 months nor more than
226 months prior to the expiration of the period of redemption,
23he or she gives notice of the sale and the date of expiration

 

 

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1of the period of redemption to the owners, occupants, and
2parties interested in the property, including any mortgagee of
3record, as provided below.
4    The Notice to be given to the parties shall be in at least
510 point type in the following form completely filled in:
6TAX DEED NO. .................... FILED ....................
7
TAKE NOTICE
8    County of ...............................................
9    Date Premises Sold ......................................
10    Certificate No. ........................................
11    Sold for General Taxes of (year) ........................
12    Sold for Special Assessment of (Municipality)
13    and special assessment number ...........................
14    Warrant No. ................ Inst. No. .................
15
THIS PROPERTY HAS BEEN SOLD FOR
16
DELINQUENT TAXES
17Property located at .........................................
18Legal Description or Property Index No. .....................
19.............................................................
20.............................................................
21    This notice is to advise you that the above property has
22been sold for delinquent taxes and that the period of
23redemption from the sale will expire on .....................
24.............................................................
25    The amount to redeem is subject to increase at 6 month
26intervals from the date of sale and may be further increased if

 

 

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1the purchaser at the tax sale or his or her assignee pays any
2subsequently accruing taxes or special assessments to redeem
3the property from subsequent forfeitures or tax sales. Check
4with the county clerk as to the exact amount you owe before
5redeeming.
6    This notice is also to advise you that a petition has been
7filed for a tax deed which will transfer title and the right to
8possession of this property if redemption is not made on or
9before ......................................................
10    This matter is set for hearing in the Circuit Court of this
11county in ...., Illinois on .....
12    You may be present at this hearing but your right to redeem
13will already have expired at that time.
14
YOU ARE URGED TO REDEEM IMMEDIATELY
15
TO PREVENT LOSS OF PROPERTY
16    Redemption can be made at any time on or before .... by
17applying to the County Clerk of ...., County, Illinois at the
18Office of the County Clerk County Court House in ....,
19Illinois.
20    For further information contact the County Clerk
21ADDRESS:....................
22TELEPHONE:..................
 
23
..........................
24
Purchaser or Assignee.
25
Dated (insert date).

 

 

 

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1    In counties with 3,000,000 or more inhabitants, the notice
2shall also state the address, room number and time at which the
3matter is set for hearing.
4    The changes to this Section made by this amendatory Act of
5the 97th General Assembly apply only to matters in which a
6petition for tax deed is filed on or after the effective date
7of this amendatory Act of the 97th General Assembly.
8    This amendatory Act of 1996 applies only to matters in
9which a petition for tax deed is filed on or after the
10effective date of this amendatory Act of 1996.
11    The changes to this Section made by this amendatory Act of
12the 95th General Assembly apply only to matters in which a
13petition for tax deed is filed on or after the effective date
14of this amendatory Act of the 95th General Assembly.
15(Source: P.A. 94-380, eff. 7-29-05; 95-477, eff. 6-1-08.)
 
16    (35 ILCS 200/22-25)
17    Sec. 22-25. Mailed notice. In addition to the notice
18required to be served not less than 3 months nor more than 6
19months prior to the expiration of the period of redemption, the
20purchaser or his or her assignee shall prepare and deliver to
21the clerk of the Circuit Court of the county in which the
22property is located, the notice provided for in this Section,
23together with the statutory costs for mailing the notice by
24certified mail, return receipt requested. The form of notice to

 

 

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1be mailed by the clerk shall be identical in form to that
2provided by Section 22-10 for service upon owners residing upon
3the property sold, except that it shall bear the signature of
4the clerk instead of the name of the purchaser or assignee and
5shall designate the parties to whom it is to be mailed. The
6clerk may furnish the form. The clerk shall promptly mail the
7notices delivered to him or her by certified mail, return
8receipt requested. The certificate of the clerk that he or she
9has mailed the notices, together with the return receipts,
10shall be filed in and made a part of the court record. The
11notices shall be mailed to the owners of the property at their
12last known addresses, and to those persons who are entitled to
13service of notice as occupants.
14    The changes to this Section made by this amendatory Act of
15the 97th General Assembly shall be construed as being
16declaratory of existing law and not as a new enactment.
17    The changes to this Section made by this amendatory Act of
18the 95th General Assembly apply only to matters in which a
19petition for tax deed is filed on or after the effective date
20of this amendatory Act of the 95th General Assembly.
21(Source: P.A. 95-477, eff. 6-1-08.)
 
22    Section 10. The Counties Code is amended by changing
23Section 3-10008 as follows:
 
24    (55 ILCS 5/3-10008)  (from Ch. 34, par. 3-10008)

 

 

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1    Sec. 3-10008. Office hours. Except as otherwise provided in
2this Section, the The county treasurer shall keep his office
3open and attend to the duties thereof from eight o'clock in the
4forenoon to five o'clock in the afternoon on each working day
5excepting such days as under law are legal holidays, and may
6close his office at 12 o'clock on Saturday of each week;
7Provided, that the county treasurer shall not be compelled to
8open his office before the hour of nine o'clock a. m. and, by
9permission of the county board, the treasurer may close his
10office all day Saturday: Provided, further, that, except with
11respect to the required office hours applicable to tax sales,
12the hours of opening and closing of the office of the county
13treasurer may be changed and otherwise fixed and determined by
14the county board of any county. Any such action taken by the
15county board shall be by an appropriate resolution passed at a
16regular meeting. Notwithstanding the provisions of this
17Section or any other provision of law, the county treasurer
18must keep his or her office open from 8:00 a.m. until 5:00 p.m.
19on the day before the commencement of a tax sale held in the
20county pursuant to Division 3.5 of Article 21 of the Property
21Tax Code and during the same hours each day the tax sale is
22pending. A home rule unit may not regulate the hours employed
23by the county treasurer in a manner that is inconsistent with
24this Section. This Section is a limitation under subsection (i)
25of Section 6 of Article VII of the Illinois Constitution on the
26concurrent exercise by home rule units of powers and functions

 

 

09700HB1218ham001- 21 -LRB097 00543 PJG 53177 a

1exercised by the State.
2(Source: P.A. 86-962.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".