Illinois General Assembly - Full Text of SB0789
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Full Text of SB0789  94th General Assembly


Sen. Rickey R. Hendon

Filed: 3/27/2006





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2     AMENDMENT NO. ______. Amend Senate Bill 789, AS AMENDED,
3 with reference to page and line numbers of Senate Amendment No.
4 1, on page 1, line 5, by replacing "Section 7-109.3" with
5 "Sections 7-109.3 and 7-132"; and
6 on page 2, immediately below line 31, by inserting the
7 following:
8     "(40 ILCS 5/7-132)   (from Ch. 108 1/2, par. 7-132)
9     Sec. 7-132. Municipalities, instrumentalities and
10 participating instrumentalities included and effective dates.
11 (A) Municipalities and their instrumentalities.
12     (a) The following described municipalities, but not
13 including any with more than 1,000,000 inhabitants, and the
14 instrumentalities thereof, shall be included within and be
15 subject to this Article beginning upon the effective dates
16 specified by the Board:
17         (1) Except as to the municipalities and
18     instrumentalities thereof specifically excluded under this
19     Article, every county shall be subject to this Article, and
20     all cities, villages and incorporated towns having a
21     population in excess of 5,000 inhabitants as determined by
22     the last preceding decennial or subsequent federal census,
23     shall be subject to this Article following publication of



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1     the census by the Bureau of the Census. Within 90 days
2     after publication of the census, the Board shall notify any
3     municipality that has become subject to this Article as a
4     result of that census, and shall provide information to the
5     corporate authorities of the municipality explaining the
6     duties and consequences of participation. The notification
7     shall also include a proposed date upon which participation
8     by the municipality will commence.
9         However, for any city, village or incorporated town
10     that attains a population over 5,000 inhabitants after
11     having provided social security coverage for its employees
12     under the Social Security Enabling Act, participation
13     under this Article shall not be mandatory but may be
14     elected in accordance with subparagraph (3) or (4) of this
15     paragraph (a), whichever is applicable.
16         (2) School districts, other than those specifically
17     excluded under this Article, shall be subject to this
18     Article, without election, with respect to all employees
19     thereof.
20         (3) Towns and all other bodies politic and corporate
21     which are formed by vote of, or are subject to control by,
22     the electors in towns and are located in towns which are
23     not participating municipalities on the effective date of
24     this Act, may become subject to this Article by election
25     pursuant to Section 7-132.1.
26         (4) Any other municipality (together with its
27     instrumentalities), other than those specifically excluded
28     from participation and those described in paragraph (3)
29     above, may elect to be included either by referendum under
30     Section 7-134 or by the adoption of a resolution or
31     ordinance by its governing body. A copy of such resolution
32     or ordinance duly authenticated and certified by the clerk
33     of the municipality or other appropriate official of its
34     governing body shall constitute the required notice to the



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1     board of such action.
2     (b) A municipality that is about to begin participation
3 shall submit to the Board an application to participate, in a
4 form acceptable to the Board, not later than 90 days prior to
5 the proposed effective date of participation. The Board shall
6 act upon the application within 90 days, and if it finds that
7 the application is in conformity with its requirements and the
8 requirements of this Article, participation by the applicant
9 shall commence on a date acceptable to the municipality and
10 specified by the Board, but in no event more than one year from
11 the date of application.
12     (c) A participating municipality which succeeds to the
13 functions of a participating municipality which is dissolved or
14 terminates its existence shall assume and be transferred the
15 net accumulation balance in the municipality reserve and the
16 municipality account receivable balance of the terminated
17 municipality.
18     (d) In the case of a Veterans Assistance Commission whose
19 employees were being treated by the Fund on January 1, 1990 as
20 employees of the county served by the Commission, the Fund may
21 continue to treat the employees of the Veterans Assistance
22 Commission as county employees for the purposes of this
23 Article, unless the Commission becomes a participating
24 instrumentality in accordance with subsection (B) of this
25 Section.
26 (B) Participating instrumentalities.
27     (a) The participating instrumentalities designated in
28 paragraph (b) of this subsection shall be included within and
29 be subject to this Article if:
30         (1) an application to participate, in a form acceptable
31     to the Board and adopted by a two-thirds vote of the
32     governing body, is presented to the Board not later than 90
33     days prior to the proposed effective date; and



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1         (2) the Board finds that the application is in
2     conformity with its requirements, that the applicant has
3     reasonable expectation to continue as a political entity
4     for a period of at least 10 years and has the prospective
5     financial capacity to meet its current and future
6     obligations to the Fund, and that the actuarial soundness
7     of the Fund may be reasonably expected to be unimpaired by
8     approval of participation by the applicant.
9     The Board shall notify the applicant of its findings within
10 90 days after receiving the application, and if the Board
11 approves the application, participation by the applicant shall
12 commence on the effective date specified by the Board.
13     (b) The following participating instrumentalities, so long
14 as they meet the requirements of Section 7-108 and the area
15 served by them or within their jurisdiction is not located
16 entirely within a municipality having more than one million
17 inhabitants, may be included hereunder:
18         i. Township School District Trustees.
19         ii. Multiple County and Consolidated Health
20     Departments created under Division 5-25 of the Counties
21     Code or its predecessor law.
22         iii. Public Building Commissions created under the
23     Public Building Commission Act, and located in counties of
24     less than 1,000,000 inhabitants.
25         iv. A multitype, consolidated or cooperative library
26     system created under the Illinois Library System Act. Any
27     library system created under the Illinois Library System
28     Act that has one or more predecessors that participated in
29     the Fund may participate in the Fund upon application. The
30     Board shall establish procedures for implementing the
31     transfer of rights and obligations from the predecessor
32     system to the successor system.
33         v. Regional Planning Commissions created under
34     Division 5-14 of the Counties Code or its predecessor law.



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1         vi. Local Public Housing Authorities created under the
2     Housing Authorities Act, located in counties of less than
3     1,000,000 inhabitants.
4         vii. Illinois Municipal League.
5         viii. Northeastern Illinois Metropolitan Area Planning
6     Commission.
7         ix. Southwestern Illinois Metropolitan Area Planning
8     Commission.
9         x. Illinois Association of Park Districts.
10         xi. Illinois Supervisors, County Commissioners and
11     Superintendents of Highways Association.
12         xii. Tri-City Regional Port District.
13         xiii. An association, or not-for-profit corporation,
14     membership in which is authorized under Section 85-15 of
15     the Township Code.
16         xiv. Drainage Districts operating under the Illinois
17     Drainage Code.
18         xv. Local mass transit districts created under the
19     Local Mass Transit District Act.
20         xvi. Soil and water conservation districts created
21     under the Soil and Water Conservation Districts Law.
22         xvii. Commissions created to provide water supply or
23     sewer services or both under Division 135 or Division 136
24     of Article 11 of the Illinois Municipal Code.
25         xviii. Public water districts created under the Public
26     Water District Act.
27         xix. Veterans Assistance Commissions established under
28     Section 9 of the Military Veterans Assistance Act that
29     serve counties with a population of less than 1,000,000.
30         xx. The governing body of an entity, other than a
31     vocational education cooperative, created under an
32     intergovernmental cooperative agreement established
33     between participating municipalities under the
34     Intergovernmental Cooperation Act, which by the terms of



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1     the agreement is the employer of the persons performing
2     services under the agreement under the usual common law
3     rules determining the employer-employee relationship. The
4     governing body of such an intergovernmental cooperative
5     entity established prior to July 1, 1988 may make
6     participation retroactive to the effective date of the
7     agreement and, if so, the effective date of participation
8     shall be the date the required application is filed with
9     the fund. If any such entity is unable to pay the required
10     employer contributions to the fund, then the participating
11     municipalities shall make payment of the required
12     contributions and the payments shall be allocated as
13     provided in the agreement or, if not so provided, equally
14     among them.
15         xxi. The Illinois Municipal Electric Agency.
16         xxii. The Waukegan Port District.
17         xxiii. The Fox Waterway Agency created under the Fox
18     Waterway Agency Act.
19         xxiv. The Illinois Municipal Gas Agency.
20         xxv. The Kaskaskia Regional Port District.
21         xxvi. The Southwestern Illinois Development Authority.
22         xxvii. The Cairo Public Utility Company.
23     (c) The governing boards of special education joint
24 agreements created under Section 10-22.31 of the School Code
25 without designation of an administrative district shall be
26 included within and be subject to this Article as participating
27 instrumentalities when the joint agreement becomes effective.
28 However, the governing board of any such special education
29 joint agreement in effect before September 5, 1975 shall not be
30 subject to this Article unless the joint agreement is modified
31 by the school districts to provide that the governing board is
32 subject to this Article, except as otherwise provided by this
33 Section.
34     The governing board of the Special Education District of



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1 Lake County shall become subject to this Article as a
2 participating instrumentality on July 1, 1997. Notwithstanding
3 subdivision (a)1 of Section 7-139, on the effective date of
4 participation, employees of the governing board of the Special
5 Education District of Lake County shall receive creditable
6 service for their prior service with that employer, up to a
7 maximum of 5 years, without any employee contribution.
8 Employees may establish creditable service for the remainder of
9 their prior service with that employer, if any, by applying in
10 writing and paying an employee contribution in an amount
11 determined by the Fund, based on the employee contribution
12 rates in effect at the time of application for the creditable
13 service and the employee's salary rate on the effective date of
14 participation for that employer, plus interest at the effective
15 rate from the date of the prior service to the date of payment.
16 Application for this creditable service must be made before
17 July 1, 1998; the payment may be made at any time while the
18 employee is still in service. The employer may elect to make
19 the required contribution on behalf of the employee.
20     The governing board of a special education joint agreement
21 created under Section 10-22.31 of the School Code for which an
22 administrative district has been designated, if there are
23 employees of the cooperative educational entity who are not
24 employees of the administrative district, may elect to
25 participate in the Fund and be included within this Article as
26 a participating instrumentality, subject to such application
27 procedures and rules as the Board may prescribe.
28     The Boards of Control of cooperative or joint educational
29 programs or projects created and administered under Section
30 3-15.14 of the School Code, whether or not the Boards act as
31 their own administrative district, shall be included within and
32 be subject to this Article as participating instrumentalities
33 when the agreement establishing the cooperative or joint
34 educational program or project becomes effective.



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1     The governing board of a special education joint agreement
2 entered into after June 30, 1984 and prior to September 17,
3 1985 which provides for representation on the governing board
4 by less than all the participating districts shall be included
5 within and subject to this Article as a participating
6 instrumentality. Such participation shall be effective as of
7 the date the joint agreement becomes effective.
8     The governing boards of educational service centers
9 established under Section 2-3.62 of the School Code shall be
10 included within and subject to this Article as participating
11 instrumentalities. The governing boards of vocational
12 education cooperative agreements created under the
13 Intergovernmental Cooperation Act and approved by the State
14 Board of Education shall be included within and be subject to
15 this Article as participating instrumentalities. If any such
16 governing boards or boards of control are unable to pay the
17 required employer contributions to the fund, then the school
18 districts served by such boards shall make payment of required
19 contributions as provided in Section 7-172. The payments shall
20 be allocated among the several school districts in proportion
21 to the number of students in average daily attendance for the
22 last full school year for each district in relation to the
23 total number of students in average attendance for such period
24 for all districts served. If such educational service centers,
25 vocational education cooperatives or cooperative or joint
26 educational programs or projects created and administered
27 under Section 3-15.14 of the School Code are dissolved, the
28 assets and obligations shall be distributed among the districts
29 in the same proportions unless otherwise provided.
30     (d) The governing boards of special recreation joint
31 agreements created under Section 8-10b of the Park District
32 Code, operating without designation of an administrative
33 district or an administrative municipality appointed to
34 administer the program operating under the authority of such



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1 joint agreement shall be included within and be subject to this
2 Article as participating instrumentalities when the joint
3 agreement becomes effective. However, the governing board of
4 any such special recreation joint agreement in effect before
5 January 1, 1980 shall not be subject to this Article unless the
6 joint agreement is modified, by the districts and
7 municipalities which are parties to the agreement, to provide
8 that the governing board is subject to this Article.
9     If the Board returns any employer and employee
10 contributions to any employer which erroneously submitted such
11 contributions on behalf of a special recreation joint
12 agreement, the Board shall include interest computed from the
13 end of each year to the date of payment, not compounded, at the
14 rate of 7% per annum.
15     (e) Each multi-township assessment district, the board of
16 trustees of which has adopted this Article by ordinance prior
17 to April 1, 1982, shall be a participating instrumentality
18 included within and subject to this Article effective December
19 1, 1981. The contributions required under Section 7-172 shall
20 be included in the budget prepared under and allocated in
21 accordance with Section 2-30 of the Property Tax Code.
22     (f) The Illinois Medical District Commission created under
23 the Illinois Medical District Act may be included within and
24 subject to this Article as a participating instrumentality,
25 notwithstanding that the location of the District is entirely
26 within the City of Chicago. To become a participating
27 instrumentality, the Commission must apply to the Board in the
28 manner set forth in paragraph (a) of this subsection (B). If
29 the Board approves the application, under the criteria and
30 procedures set forth in paragraph (a) and any other applicable
31 rules, criteria, and procedures of the Board, participation by
32 the Commission shall commence on the effective date specified
33 by the Board.



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1 (C) Prospective participants.
2      (f) Beginning January 1, 1992, each prospective
3 participating municipality or participating instrumentality
4 shall pay to the Fund the cost, as determined by the Board, of
5 a study prepared by the Fund or its actuary, detailing the
6 prospective costs of participation in the Fund to be expected
7 by the municipality or instrumentality.
8 (Source: P.A. 92-424, eff. 8-17-01; 93-777, eff. 7-21-04.)".