Sen. Thomas Cullerton

Filed: 4/15/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 494, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 5. The Counties Code is amended by adding Division
65-44 to Article 5 and Sections 5-44005, 5-44010, 5-44015,
75-44020, 5-44025, 5-44030, 5-44035, 5-44040, 5-44045, 5-44050,
8and 5-44055 as follows:
9    (55 ILCS 5/Div. 5-44 heading new)
Division 5-44. Local Government Reduction and Efficiency

11    (55 ILCS 5/5-44005 new)
12    Sec. 5-44005. Findings and purpose.
13    (a) The General Assembly finds:
14        (1) Illinois has more units of local government than
15    any other state.



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1        (2) The large number of units of local government
2    results in the inefficient delivery of governmental
3    services at a higher cost to taxpayers.
4        (3) In a number of cases, units of local government
5    provide services that are duplicative in nature, as they
6    are provided by other units of local government.
7        (4) It is in the best interest of taxpayers that more
8    efficient service delivery structures be established in
9    order to replace units of local government that are not
10    financially sustainable.
11        (5) Units of local government managed by appointed
12    governing boards not directly accountable to the
13    electorate can encourage a lack of oversight and
14    complacency that is not in the best interest of taxpayers.
15        (6) Various provisions of Illinois law governing the
16    dissolution of units of local government are inconsistent
17    and outdated.
18        (7) The lack of a streamlined method to consolidate
19    government functions and to dissolve units of local
20    government results in an unfair tax burden on the citizens
21    of the State of Illinois residing in those units of local
22    government and prevents the expenditure of limited public
23    funds for critical programs and services.
24    (b) The purpose of this Act is to provide county boards
25with supplemental authority regarding the dissolution of units
26of local government and the consolidation of governmental



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2    (55 ILCS 5/5-44010 new)
3    Sec. 5-44010. Applicability. The powers and authorities
4provided by this Division 5-44 apply only to counties with a
5population of more than 900,000 and less than 3,000,000 that
6are contiguous to a county with a population of more than
73,000,000 and units of local government within such counties.
8    (55 ILCS 5/5-44015 new)
9    Sec. 5-44015. Powers; supplemental. The Sections of this
10Division 5-44 are intended to be supplemental and in addition
11to all other powers and authorities granted to any county
12board, shall be construed liberally, and shall not be construed
13as a limitation of any power or authority otherwise granted.
14    (55 ILCS 5/5-44020 new)
15    Sec. 5-44020. Definitions. In this Division 5-44:
16    "Fire protection jurisdiction" means a fire protection
17district, municipal fire department, or service organized
18under Section 5-1056.1 of the Counties Code, Sections 195 and
19200 of the Township Code, Section 10-2.1 of the Illinois
20Municipal Code, or the Illinois Fire Protection District Act.
21    "Governing board" means the individual or individuals who
22constitute the corporate authorities of a unit of local
23government; and



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1    "Unit of local government" or "unit" means any unit of
2local government located entirely within one county, to which
3the county board chairman or county executive directly appoints
4a majority of its governing board with the advice and consent
5of the county board, but shall not include a fire protection
6district that directly employs any regular full-time employees
7or a special district organized under the Water Commission Act
8of 1985.
9    (55 ILCS 5/5-44025 new)
10    Sec. 5-44025. Dissolution of units of local government.
11    (a) A county board may, by ordinance, propose the
12dissolution of a unit of local government. The ordinance shall
13detail the purpose and cost savings to be achieved by such
14dissolution, and be published in a newspaper of general
15circulation served by the unit of local government and on the
16county's website, if applicable.
17    (b) Upon the effective date of an ordinance enacted
18pursuant to subsection (a) of this Section, the chairman of the
19county board shall cause an audit of all claims against the
20unit, all receipts of the unit, the inventory of all real and
21personal property owned by the unit or under its control or
22management, and any debts owed by the unit. The chairman may,
23at his or her discretion, undertake any other audit or
24financial review of the affairs of the unit. The person or
25entity conducting such audit shall report the findings of the



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1audit to the county board and to the chairman of the county
2board within 30 days.
3    (c) Following the return of the audit report required by
4subsection (b) of this Section, the county board may adopt an
5ordinance dissolving the unit 150 days following the effective
6date of the ordinance. Upon adoption of the ordinance, but
7prior to its effective date, the chairman of the county board
8shall petition the circuit court for an order designating a
9trustee-in-dissolution for the unit, immediately terminating
10the terms of the members of the governing board of the unit of
11local government on the effective date of the ordinance, and
12providing for the compensation of the trustee, which shall be
13paid from the corporate funds of the unit.
14    (d) Upon the effective date of an ordinance enacted under
15subsection (c) of this Section, and notwithstanding any other
16provision of law, the State's attorney, or his or her designee,
17shall become the exclusive legal representative of the
18dissolving unit of local government. The county treasurer shall
19become the treasurer of the unit of local government and the
20county clerk shall become the secretary of the unit of local
22    (55 ILCS 5/5-44030 new)
23    Sec. 5-44030. Trustee-in-dissolution; powers and duties.
24    (a) The trustee-in-dissolution shall have the following
25powers and duties:



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1        (1) to execute all of the powers and duties of the
2    previous board;
3        (2) to levy and rebate taxes, subject to the approval
4    of the county board, for the purpose of paying the debts,
5    obligations, and liabilities of the unit that are
6    outstanding on the date of the dissolution and the
7    necessary expenses of closing up the affairs of the
8    district if these funds are not available from the unit of
9    local government's general fund;
10        (3) to present, within 30 days of his or her
11    appointment, a plan for the consolidation and dissolution
12    of the unit of local government to the county board for its
13    approval. The plan shall identify what functions, if any,
14    of the unit of local government shall be undertaken by the
15    county upon dissolution and whether any taxes previously
16    levied for the provision of these functions shall be
17    maintained;
18        (4) to enter into an intergovernmental agreement with
19    one or more governmental entities to utilize existing
20    resources including, but not limited to, labor, materials,
21    and property, as may be needed to carry out the foregoing
22    duties;
23        (5) to enter into an intergovernmental agreement with
24    the county to combine or transfer any of the powers,
25    privileges, functions, or authority of the unit of local
26    government to the county as may be required to facilitate



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1    the transition; and
2        (6) to sell the property of the unit and, in case any
3    excess remains after all liabilities of the unit are paid,
4    the excess shall be transferred to a special fund created
5    and maintained by the county treasurer to be expended
6    solely to defer the costs incurred by the county in
7    performing the duties of the unit, subject to the
8    requirements of Section 5-44035 of this Division. Nothing
9    in this Section shall prohibit the county from acquiring
10    any or all real or personal property of the district.
11    (b) For fire protection jurisdictions, the
12trustee-in-dissolution shall not have:
13        (1) the powers enumerated in this Section unless the
14    dissolution of that unit of local government shall not
15    increase the average response times nor decrease the level
16    of services provided; and
17        (2) the power to decrease the levy that is in effect on
18    or before the date of dissolution of the fire protection
19    jurisdiction that affects the provision of fire and
20    emergency medical services.
21    (55 ILCS 5/5-44035 new)
22    Sec. 5-44035. Outstanding indebtedness.
23    (a) In case any unit dissolved pursuant to this Division
24has bonds or notes outstanding that are a lien on funds
25available in the treasury at the time of consolidation, such



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1lien shall be unimpaired by such dissolution and the lien shall
2continue in favor of the bond or note holders. The funds
3available subject to such a lien shall be set apart and held
4for the purpose of retiring such secured debt and no such funds
5shall be transferred into the general funds of the county.
6    (b) In case any unit dissolved pursuant to this Division
7has unsecured debts outstanding at the time of dissolution, any
8funds in the treasury of such unit or otherwise available and
9not committed shall, to the extent necessary, be applied to the
10payment of such debts.
11    (c) All property in the territory served by the dissolved
12unit of government shall be subject to taxation to pay the
13debts, bonds, and obligations of the dissolved district. The
14county board shall abate this taxation upon the discharge of
15all outstanding obligations.
16    (55 ILCS 5/5-44040 new)
17    Sec. 5-44040. Effect of dissolution. Immediately upon the
18dissolution of a unit of local government pursuant to this
20    (a) Notwithstanding the provisions of the Special Service
21Area Tax Law of the Property Tax Code that pertain to the
22establishment of special service areas, all or part of the
23territory formerly served by the dissolved unit of local
24government may be established as a special service area or
25areas of the county if the county board by resolution



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1determines that this designation is necessary for it to provide
2services. The special service area, if created, shall include
3all territory formerly served by the dissolved unit of local
4government if the dissolved unit has outstanding indebtedness.
5If the boundaries of a special service area created under this
6subsection include territory within a municipality, the
7corporate authorities of that municipality may, with the
8consent of the county, assume responsibility for the special
9service area and become its governing body.
10    All or part of the territory formerly served by a dissolved
11fire protection jurisdiction shall not be established as a
12special service area unless the creation of the special service
13area does not increase the average response times nor decrease
14the level of service provided.
15    (b) In addition to any other powers provided by law, the
16governing body of a special service area created pursuant to
17this subsection shall assume and is authorized to exercise all
18the powers and duties of the dissolved unit with respect to the
19special service area. The governing body is also authorized to
20continue to levy any tax previously imposed by the unit of
21local government within the special service area. However, the
22governing board shall not have the power to decrease the levy
23that is in effect on or before the date of dissolution of the
24fire protection jurisdiction that affects the provision of fire
25and emergency medical services.
26    (c) Subsequent increases of the current tax levy within the



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1special service area or areas shall be made in accordance with
2the provisions of the Special Service Area Tax Law of the
3Property Tax Code.
4    (55 ILCS 5/5-44045 new)
5    Sec. 5-44045. Abatement of levy. Whenever a county has
6dissolved a unit of local government pursuant to this Division,
7the county or municipality shall, within 6 months of the
8effective date of the dissolution and every year thereafter,
9evaluate the need to continue any existing tax levy until the
10county or municipality abates the levy in the manner set forth
11by the Special Service Area Tax Law of the Property Tax Code.
12    (55 ILCS 5/5-44050 new)
13    Sec. 5-44050. Tax collection and enforcement. The
14dissolution of a unit of government pursuant to this Division
15shall not adversely affect proceedings for the collection or
16enforcement of any tax. Those proceedings shall continue to
17finality as though no dissolution had taken place. The proceeds
18thereof shall be paid over to the treasurer of the county to be
19used for the purpose for which the tax was levied or assessed.
20Proceedings to collect and enforce such taxes may be instituted
21and carried on in the name of the unit.
22    (55 ILCS 5/5-44055 new)
23    Sec. 5-44055. Litigation. All suits pending in any court on



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1behalf of or against a unit dissolved pursuant to this Division
2may be prosecuted or defended in the name of the county by the
3state's attorney. All judgments obtained for a unit dissolved
4pursuant to this Division shall be collected and enforced by
5the county for its benefit.
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".