HB3474sam001 97TH GENERAL ASSEMBLY

Sen. Don Harmon

Filed: 2/21/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3474

2    AMENDMENT NO. ______. Amend House Bill 3474 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 7-132 as follows:
 
6    (40 ILCS 5/7-132)   (from Ch. 108 1/2, par. 7-132)
7    Sec. 7-132. Municipalities, instrumentalities and
8participating instrumentalities included and effective dates.
 
9(A) Municipalities and their instrumentalities.
10    (a) The following described municipalities, but not
11including any with more than 1,000,000 inhabitants, and the
12instrumentalities thereof, shall be included within and be
13subject to this Article beginning upon the effective dates
14specified by the Board:
15        (1) Except as to the municipalities and

 

 

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1    instrumentalities thereof specifically excluded under this
2    Article, every county shall be subject to this Article, and
3    all cities, villages and incorporated towns having a
4    population in excess of 5,000 inhabitants as determined by
5    the last preceding decennial or subsequent federal census,
6    shall be subject to this Article following publication of
7    the census by the Bureau of the Census. Within 90 days
8    after publication of the census, the Board shall notify any
9    municipality that has become subject to this Article as a
10    result of that census, and shall provide information to the
11    corporate authorities of the municipality explaining the
12    duties and consequences of participation. The notification
13    shall also include a proposed date upon which participation
14    by the municipality will commence.
15        However, for any city, village or incorporated town
16    that attains a population over 5,000 inhabitants after
17    having provided social security coverage for its employees
18    under the Social Security Enabling Act, participation
19    under this Article shall not be mandatory but may be
20    elected in accordance with subparagraph (3) or (4) of this
21    paragraph (a), whichever is applicable.
22        (2) School districts, other than those specifically
23    excluded under this Article, shall be subject to this
24    Article, without election, with respect to all employees
25    thereof.
26        (3) Towns and all other bodies politic and corporate

 

 

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1    which are formed by vote of, or are subject to control by,
2    the electors in towns and are located in towns which are
3    not participating municipalities on the effective date of
4    this Act, may become subject to this Article by election
5    pursuant to Section 7-132.1.
6        (4) Any other municipality (together with its
7    instrumentalities), other than those specifically excluded
8    from participation and those described in paragraph (3)
9    above, may elect to be included either by referendum under
10    Section 7-134 or by the adoption of a resolution or
11    ordinance by its governing body. A copy of such resolution
12    or ordinance duly authenticated and certified by the clerk
13    of the municipality or other appropriate official of its
14    governing body shall constitute the required notice to the
15    board of such action.
16    (b) A municipality that is about to begin participation
17shall submit to the Board an application to participate, in a
18form acceptable to the Board, not later than 90 days prior to
19the proposed effective date of participation. The Board shall
20act upon the application within 90 days, and if it finds that
21the application is in conformity with its requirements and the
22requirements of this Article, participation by the applicant
23shall commence on a date acceptable to the municipality and
24specified by the Board, but in no event more than one year from
25the date of application.
26    (c) A participating municipality which succeeds to the

 

 

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1functions of a participating municipality which is dissolved or
2terminates its existence shall assume and be transferred the
3net accumulation balance in the municipality reserve and the
4municipality account receivable balance of the terminated
5municipality.
6    (d) In the case of a Veterans Assistance Commission whose
7employees were being treated by the Fund on January 1, 1990 as
8employees of the county served by the Commission, the Fund may
9continue to treat the employees of the Veterans Assistance
10Commission as county employees for the purposes of this
11Article, unless the Commission becomes a participating
12instrumentality in accordance with subsection (B) of this
13Section.
 
14(B) Participating instrumentalities.
15    (a) The participating instrumentalities designated in
16paragraph (b) of this subsection shall be included within and
17be subject to this Article if:
18        (1) an application to participate, in a form acceptable
19    to the Board and adopted by a two-thirds vote of the
20    governing body, is presented to the Board not later than 90
21    days prior to the proposed effective date; and
22        (2) the Board finds that the application is in
23    conformity with its requirements, that the applicant has
24    reasonable expectation to continue as a political entity
25    for a period of at least 10 years and has the prospective

 

 

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

 

 

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1    transfer of rights and obligations from the predecessor
2    system to the successor system.
3        v. Regional Planning Commissions created under
4    Division 5-14 of the Counties Code or its predecessor law.
5        vi. Local Public Housing Authorities created under the
6    Housing Authorities Act, located in counties of less than
7    1,000,000 inhabitants.
8        vii. Illinois Municipal League.
9        viii. Northeastern Illinois Metropolitan Area Planning
10    Commission.
11        ix. Southwestern Illinois Metropolitan Area Planning
12    Commission.
13        x. Illinois Association of Park Districts.
14        xi. Illinois Supervisors, County Commissioners and
15    Superintendents of Highways Association.
16        xii. Tri-City Regional Port District.
17        xiii. An association, or not-for-profit corporation,
18    membership in which is authorized under Section 85-15 of
19    the Township Code.
20        xiv. Drainage Districts operating under the Illinois
21    Drainage Code.
22        xv. Local mass transit districts created under the
23    Local Mass Transit District Act.
24        xvi. Soil and water conservation districts created
25    under the Soil and Water Conservation Districts Law.
26        xvii. Commissions created to provide water supply or

 

 

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1    sewer services or both under Division 135 or Division 136
2    of Article 11 of the Illinois Municipal Code.
3        xviii. Public water districts created under the Public
4    Water District Act.
5        xix. Veterans Assistance Commissions established under
6    Section 9 of the Military Veterans Assistance Act that
7    serve counties with a population of less than 1,000,000.
8        xx. The governing body of an entity, other than a
9    vocational education cooperative, created under an
10    intergovernmental cooperative agreement established
11    between participating municipalities under the
12    Intergovernmental Cooperation Act, which by the terms of
13    the agreement is the employer of the persons performing
14    services under the agreement under the usual common law
15    rules determining the employer-employee relationship. The
16    governing body of such an intergovernmental cooperative
17    entity established prior to July 1, 1988 may make
18    participation retroactive to the effective date of the
19    agreement and, if so, the effective date of participation
20    shall be the date the required application is filed with
21    the fund. If any such entity is unable to pay the required
22    employer contributions to the fund, then the participating
23    municipalities shall make payment of the required
24    contributions and the payments shall be allocated as
25    provided in the agreement or, if not so provided, equally
26    among them.

 

 

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1        xxi. The Illinois Municipal Electric Agency.
2        xxii. The Waukegan Port District.
3        xxiii. The Fox Waterway Agency created under the Fox
4    Waterway Agency Act.
5        xxiv. The Illinois Municipal Gas Agency.
6        xxv. The Kaskaskia Regional Port District.
7        xxvi. The Southwestern Illinois Development Authority.
8        xxvii. The Cairo Public Utility Company.
9        xxviii. Except with respect to employees who elect to
10    participate in the State Employees' Retirement System of
11    Illinois under Section 14-104.13 of this Code, the Chicago
12    Metropolitan Agency for Planning created under the
13    Regional Planning Act, provided that, with respect to the
14    benefits payable pursuant to Sections 7-146, 7-150, and
15    7-164 and the requirement that eligibility for such
16    benefits is conditional upon satisfying a minimum period of
17    service or a minimum contribution, any employee of the
18    Chicago Metropolitan Agency for Planning that was
19    immediately prior to such employment an employee of the
20    Chicago Area Transportation Study or the Northeastern
21    Illinois Planning Commission, such employee's service at
22    the Chicago Area Transportation Study or the Northeastern
23    Illinois Planning Commission and contributions to the
24    State Employees' Retirement System of Illinois established
25    under Article 14 and the Illinois Municipal Retirement Fund
26    shall count towards the satisfaction of such requirements.

 

 

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1        xxix. United Counties Council (formerly the Urban
2    Counties Council), but only if the Council has a ruling
3    from the United States Internal Revenue Service that it is
4    a governmental entity.
5        xxx. The Will County Governmental League, but only if
6    the League has a ruling from the United States Internal
7    Revenue Service that it is a governmental entity.
8    (c) The governing boards of special education joint
9agreements created under Section 10-22.31 of the School Code
10without designation of an administrative district shall be
11included within and be subject to this Article as participating
12instrumentalities when the joint agreement becomes effective.
13However, the governing board of any such special education
14joint agreement in effect before September 5, 1975 shall not be
15subject to this Article unless the joint agreement is modified
16by the school districts to provide that the governing board is
17subject to this Article, except as otherwise provided by this
18Section.
19    The governing board of the Special Education District of
20Lake County shall become subject to this Article as a
21participating instrumentality on July 1, 1997. Notwithstanding
22subdivision (a)1 of Section 7-139, on the effective date of
23participation, employees of the governing board of the Special
24Education District of Lake County shall receive creditable
25service for their prior service with that employer, up to a
26maximum of 5 years, without any employee contribution.

 

 

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1Employees may establish creditable service for the remainder of
2their prior service with that employer, if any, by applying in
3writing and paying an employee contribution in an amount
4determined by the Fund, based on the employee contribution
5rates in effect at the time of application for the creditable
6service and the employee's salary rate on the effective date of
7participation for that employer, plus interest at the effective
8rate from the date of the prior service to the date of payment.
9Application for this creditable service must be made before
10July 1, 1998; the payment may be made at any time while the
11employee is still in service. The employer may elect to make
12the required contribution on behalf of the employee.
13    The governing board of a special education joint agreement
14created under Section 10-22.31 of the School Code for which an
15administrative district has been designated, if there are
16employees of the cooperative educational entity who are not
17employees of the administrative district, may elect to
18participate in the Fund and be included within this Article as
19a participating instrumentality, subject to such application
20procedures and rules as the Board may prescribe.
21    The Boards of Control of cooperative or joint educational
22programs or projects created and administered under Section
233-15.14 of the School Code, whether or not the Boards act as
24their own administrative district, shall be included within and
25be subject to this Article as participating instrumentalities
26when the agreement establishing the cooperative or joint

 

 

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1educational program or project becomes effective.
2    The governing board of a special education joint agreement
3entered into after June 30, 1984 and prior to September 17,
41985 which provides for representation on the governing board
5by less than all the participating districts shall be included
6within and subject to this Article as a participating
7instrumentality. Such participation shall be effective as of
8the date the joint agreement becomes effective.
9    The governing boards of educational service centers
10established under Section 2-3.62 of the School Code shall be
11included within and subject to this Article as participating
12instrumentalities. The governing boards of vocational
13education cooperative agreements created under the
14Intergovernmental Cooperation Act and approved by the State
15Board of Education shall be included within and be subject to
16this Article as participating instrumentalities. If any such
17governing boards or boards of control are unable to pay the
18required employer contributions to the fund, then the school
19districts served by such boards shall make payment of required
20contributions as provided in Section 7-172. The payments shall
21be allocated among the several school districts in proportion
22to the number of students in average daily attendance for the
23last full school year for each district in relation to the
24total number of students in average attendance for such period
25for all districts served. If such educational service centers,
26vocational education cooperatives or cooperative or joint

 

 

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1educational programs or projects created and administered
2under Section 3-15.14 of the School Code are dissolved, the
3assets and obligations shall be distributed among the districts
4in the same proportions unless otherwise provided.
5    The governing board of Paris Cooperative High School shall
6be included within and be subject to this Article as a
7participating instrumentality on the effective date of this
8amendatory Act of the 96th General Assembly. If the governing
9board of Paris Cooperative High School is unable to pay the
10required employer contributions to the fund, then the school
11districts served shall make payment of required contributions
12as provided in Section 7-172. The payments shall be allocated
13among the several school districts in proportion to the number
14of students in average daily attendance for the last full
15school year for each district in relation to the total number
16of students in average attendance for such period for all
17districts served. If Paris Cooperative High School is
18dissolved, then the assets and obligations shall be distributed
19among the districts in the same proportions unless otherwise
20provided.
21    The Philip J. Rock Center and School shall be included
22within and be subject to this Article as a participating
23instrumentality on the effective date of this amendatory Act of
24the 97th General Assembly. The Philip J. Rock Center and School
25shall certify to the Fund the dates of service of all employees
26within 90 days of the effective date of this amendatory Act of

 

 

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1the 97th General Assembly. The Fund shall transfer to the IMRF
2account of the Philip J. Rock Center and School all creditable
3service and all employer contributions made on behalf of the
4employees for service at the Philip J. Rock Center and School
5that were reported and paid to IMRF by another employer prior
6to this date. If the Philip J. Rock Center and School is unable
7to pay the required employer contributions to the Fund, then
8the amount due will be paid by all employers as defined in item
9(2) of paragraph (a) of subsection (A) of this Section. The
10payments shall be allocated among these employers in proportion
11to the number of students in average daily attendance for the
12last full school year for each district in relation to the
13total number of students in average attendance for such period
14for all districts. If the Philip J. Rock Center and School is
15dissolved, then its IMRF assets and obligations shall be
16distributed in the same proportions unless otherwise provided.
17    Financial Oversight Panels established under Article 1H of
18the School Code shall be included within and be subject to this
19Article as a participating instrumentality on the effective
20date of this amendatory Act of the 97th General Assembly. If
21the Financial Oversight Panel is unable to pay the required
22employer contributions to the fund, then the school districts
23served shall make payment of required contributions as provided
24in Section 7-172. If the Financial Oversight Panel is
25dissolved, then the assets and obligations shall be distributed
26to the district served.

 

 

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1    (d) The governing boards of special recreation joint
2agreements created under Section 8-10b of the Park District
3Code, operating without designation of an administrative
4district or an administrative municipality appointed to
5administer the program operating under the authority of such
6joint agreement shall be included within and be subject to this
7Article as participating instrumentalities when the joint
8agreement becomes effective. However, the governing board of
9any such special recreation joint agreement in effect before
10January 1, 1980 shall not be subject to this Article unless the
11joint agreement is modified, by the districts and
12municipalities which are parties to the agreement, to provide
13that the governing board is subject to this Article.
14    If the Board returns any employer and employee
15contributions to any employer which erroneously submitted such
16contributions on behalf of a special recreation joint
17agreement, the Board shall include interest computed from the
18end of each year to the date of payment, not compounded, at the
19rate of 7% per annum.
20    (e) Each multi-township assessment district, the board of
21trustees of which has adopted this Article by ordinance prior
22to April 1, 1982, shall be a participating instrumentality
23included within and subject to this Article effective December
241, 1981. The contributions required under Section 7-172 shall
25be included in the budget prepared under and allocated in
26accordance with Section 2-30 of the Property Tax Code.

 

 

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1    (f) The Illinois Medical District Commission created under
2the Illinois Medical District Act may be included within and
3subject to this Article as a participating instrumentality,
4notwithstanding that the location of the District is entirely
5within the City of Chicago. To become a participating
6instrumentality, the Commission must apply to the Board in the
7manner set forth in paragraph (a) of this subsection (B). If
8the Board approves the application, under the criteria and
9procedures set forth in paragraph (a) and any other applicable
10rules, criteria, and procedures of the Board, participation by
11the Commission shall commence on the effective date specified
12by the Board.
 
13(C) Prospective participants.
14     Beginning January 1, 1992, each prospective participating
15municipality or participating instrumentality shall pay to the
16Fund the cost, as determined by the Board, of a study prepared
17by the Fund or its actuary, detailing the prospective costs of
18participation in the Fund to be expected by the municipality or
19instrumentality.
20(Source: P.A. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09;
2196-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff.
228-16-11.)
 
23    Section 90. The State Mandates Act is amended by adding
24Section 8.36 as follows:
 

 

 

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1    (30 ILCS 805/8.36 new)
2    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 97th General Assembly.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".