Full Text of SB1797 102nd General Assembly
SB1797 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB1797 Introduced 2/26/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
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65 ILCS 5/11-10-1 | from Ch. 24, par. 11-10-1 |
65 ILCS 5/11-10-2 | from Ch. 24, par. 11-10-2 |
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Amends the Illinois Municipal Code. Provides that the fee that must be paid to a foreign fire insurance board by a corporation, company, or association that is not incorporated under the laws of the State and which is engaged in effecting fire insurance in the municipality or fire protection district shall be 2% of the gross receipts received from fire insurance upon property situated within the municipality or district (rather than a sum not exceeding 2%). Allows a foreign fire insurance board aggrieved by a violation relating to foreign fire insurance board fees to file suit. Provides that a department foreign fire insurance board may: (i) establish, manage, and maintain an account for the holding and expenditure of all funds paid to the board; (ii) contract for the purchase of goods and services; and (iii) sue all parties necessary to enforce its rights. Limits home rule powers. Makes other changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOME RULE NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | changing Sections 11-10-1 and 11-10-2 as follows:
| 6 | | (65 ILCS 5/11-10-1) (from Ch. 24, par. 11-10-1)
| 7 | | Sec. 11-10-1. (a) In each municipality or fire protection | 8 | | district, whether
incorporated under a general or special law, | 9 | | which has a fire department
established and maintained by | 10 | | municipal or fire protection district
ordinances, every | 11 | | corporation, company, and association which is not
| 12 | | incorporated under the laws of this state and which is engaged | 13 | | in effecting
fire insurance in the municipality or fire | 14 | | protection district, shall pay
to the foreign fire insurance | 15 | | board or to the secretary of the fire
protection district for | 16 | | the maintenance, use, and benefit of the fire
department | 17 | | thereof, a sum of not exceeding 2% of the gross receipts | 18 | | received
from fire insurance upon property situated within the | 19 | | municipality or
district.
| 20 | | Each municipality and fire protection district may | 21 | | prescribe by
ordinance the rate of the tax or license fee to be | 22 | | paid, but this rate
shall not exceed the rate specified in this | 23 | | section. Each designated
corporation, company, and association |
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| 1 | | shall pay at the rate so prescribed by this subsection ,
upon | 2 | | the amount of all premiums which have been received during the | 3 | | year
ending on every first day of July for all fire insurance | 4 | | effected or agreed
to be effected on property situated within | 5 | | the municipality or fire
protection district, by that | 6 | | corporation, company, or association
respectively.
| 7 | | Every person who acts in any specified municipality or | 8 | | fire protection
district as agent, or otherwise, on behalf of | 9 | | a designated corporation,
company, or association, shall | 10 | | render to the treasurer of the foreign fire insurance board or | 11 | | secretary of the fire
protection district, on or before the | 12 | | fifteenth day of July of each year, a
full and true account, | 13 | | verified by his oath, of all of the premiums which,
during the | 14 | | year ending on the first day of July preceding the report, were
| 15 | | received by him, or by any other person for him on behalf of | 16 | | that
corporation, company, or association. He shall specify in | 17 | | this report the
amounts received for fire insurance, and he | 18 | | shall pay to the treasurer of
the foreign fire insurance | 19 | | board, or to the secretary of the fire protection district, at
| 20 | | the time of rendering this report, the amount as determined by | 21 | | the rate
fixed by this subsection by the ordinance of the | 22 | | municipality or fire protection district for
which his | 23 | | corporation, company, or association is accountable under this
| 24 | | section and the ordinance .
| 25 | | If this account is not rendered on or before the fifteenth | 26 | | day of July
of each year, or if the sum due remains unpaid |
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| 1 | | after that day, it shall be
unlawful for any corporation, | 2 | | company, or association, so in default, to
transact any | 3 | | business in the municipality or fire protection district until
| 4 | | the sum due has been fully paid. But this provision shall not | 5 | | relieve any
corporation, company, or association from the | 6 | | payment of any loss upon any
risk that may be taken in | 7 | | violation of this requirement.
| 8 | | The amount of this tax or license fee may be recovered from | 9 | | the
corporation, company, or association which owes it, or | 10 | | from its agent, by
an action brought by a foreign fire | 11 | | insurance board in the name and for the use of the municipality | 12 | | or fire
protection district as for money had and received .
| 13 | | The foreign fire insurance board municipal comptroller, if | 14 | | any, and if not, then the municipal clerk
or the secretary of | 15 | | the fire protection district, or their designee, may examine | 16 | | the books,
records, and other papers and documents of a | 17 | | designated agent, corporation,
company, or association for the | 18 | | purpose of verifying the correctness of the
report of the | 19 | | amounts received for fire insurance.
| 20 | | This subsection section shall not be applicable to | 21 | | receipts from contracts of
marine insurance, even though they | 22 | | include insurance against fire, where
the premium for the fire | 23 | | insurance is not separately specified. | 24 | | (b) A foreign fire insurance board aggrieved by a | 25 | | violation of this Section may file suit in the Circuit Court in | 26 | | the county where the alleged violation occurred. |
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| 1 | | (c) The regulation of foreign fire insurance boards and | 2 | | their taxes or license fees are exclusive powers and functions | 3 | | of the State. A home rule municipality may not regulate | 4 | | foreign fire insurance boards and their taxes or license fees. | 5 | | This Section is a denial and limitation of home rule powers and | 6 | | functions under subsection (h) of Section 6 of Article VII of | 7 | | the Illinois Constitution.
| 8 | | (Source: P.A. 95-807, eff. 8-12-08.)
| 9 | | (65 ILCS 5/11-10-2) (from Ch. 24, par. 11-10-2)
| 10 | | Sec. 11-10-2. (a) A department foreign fire insurance | 11 | | board shall be created by and among the sworn members of within | 12 | | the fire department of each municipality with fewer than | 13 | | 500,000 inhabitants that has an organized fire department. The | 14 | | board shall consist of 7 trustees; the fire chief, who shall | 15 | | hold office by virtue of rank, and 6 members, who shall be | 16 | | elected at large by the sworn members of the department. If | 17 | | there is an insufficient number of candidates to fill all | 18 | | these positions, the number of board members may be reduced, | 19 | | but not to fewer than 3 trustees. All members of the department | 20 | | shall be eligible to be elected as
officers of the department | 21 | | foreign fire insurance board. The members of this board shall | 22 | | annually elect officers. These officers
shall be a chairman | 23 | | and a treasurer. The trustees of the department foreign fire | 24 | | insurance board shall make all needful rules and
regulations | 25 | | with respect to the department foreign fire insurance board |
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| 1 | | and
the management of the money to be paid appropriated to the | 2 | | board. The department foreign fire insurance board may | 3 | | establish, manage, and maintain an account for the holding and | 4 | | expenditure of all funds paid to the board. The department | 5 | | foreign fire insurance board may contract for the purchase of | 6 | | goods and services. The department foreign fire insurance | 7 | | board may sue all parties necessary to enforce its rights | 8 | | under this Section. The officers of the department foreign | 9 | | fire insurance board
shall develop and maintain a listing of | 10 | | those items that the board feels are
appropriate
expenditures | 11 | | under this Act. The treasurer of the department foreign
fire | 12 | | insurance board shall give a sufficient bond to the | 13 | | municipality
in which the fire department is organized. This | 14 | | bond shall be approved by
the mayor or president, as the case | 15 | | may be, conditioned upon the faithful
performance by the | 16 | | treasurer of his or her duties under the ordinance and
the | 17 | | rules and regulations provided for in this section. The | 18 | | treasurer
of the department foreign fire insurance board shall | 19 | | receive the
appropriated money and shall pay out the money | 20 | | upon the
order of the department foreign fire insurance board | 21 | | for the
maintenance, use, and benefit of the department.
As | 22 | | part of the annual municipal audit, these funds shall be | 23 | | audited to verify
that the funds have been expended by that | 24 | | board only for the maintenance, use, and benefit of the
| 25 | | department.
| 26 | | (b) As used in this subsection, "active member" means a |
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| 1 | | member of the Chicago Fire Department who is not receiving a | 2 | | disability pension, retired, or a deferred pensioner of the | 3 | | Firemen's Annuity and Benefit Fund of Chicago. | 4 | | A department foreign fire insurance board is created | 5 | | within the Chicago Fire Department. The board shall consist of | 6 | | 7 trustees who shall be initially elected on or before January | 7 | | 1, 2019: the fire commissioner, who shall hold office by | 8 | | virtue of rank, and 6 elected trustees, who shall be elected at | 9 | | large by the sworn members of the department. If there is an | 10 | | insufficient number of candidates seeking election to each | 11 | | vacant trustee position, the number of board members is | 12 | | reduced to 5 trustees, including the fire commissioner of the | 13 | | department, until the next election cycle when there are | 14 | | enough active members seeking election to fill all 7 member | 15 | | seats. All active members are eligible to be elected as | 16 | | trustees of the department foreign fire insurance board. Of | 17 | | the trustees first elected, 3 trustees shall be elected to a | 18 | | 2-year term and 3 trustees shall be elected to a 3-year term. | 19 | | After the initial election, a trustee shall be elected for a | 20 | | term of 3 years. If a member of the board resigns, is removed, | 21 | | or is unable to continue serving on the board, the vacancy | 22 | | shall be filled by special election of the active members or, | 23 | | in the case of a vacancy that will exist for fewer than 180 | 24 | | days until the term expires, by appointment by majority vote | 25 | | of the members of the board. | 26 | | The members of the board shall annually elect officers. |
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| 1 | | These officers shall be a chairman, treasurer, and secretary. | 2 | | The trustees of the board shall make rules and regulations | 3 | | with respect to the board and the management of the money | 4 | | appropriated to the board. The officers of the board shall | 5 | | develop and maintain a listing of those items that the board | 6 | | believes are appropriate expenditures under this subsection. | 7 | | The treasurer of the board shall give a sufficient bond to the | 8 | | City of Chicago. The cost of the bond shall be paid out of the | 9 | | moneys in the board's fund. The bond shall be conditioned upon | 10 | | the faithful performance by the treasurer of his or her duties | 11 | | under the rules and regulations provided for in this | 12 | | subsection. The treasurer of the board shall receive the | 13 | | appropriated proceeds and shall disburse the proceeds upon the | 14 | | order of the board for the maintenance, use, and benefit of the | 15 | | department consistent with this subsection. As part of the | 16 | | annual municipal audit, these funds shall be audited to verify | 17 | | that the funds have been expended lawfully by the board | 18 | | consistent with this subsection. | 19 | | Within 30 days after receipt of any foreign fire insurance | 20 | | proceeds by the City of Chicago, the City of Chicago shall | 21 | | transfer the proceeds to the board by depositing the proceeds | 22 | | into an account determined by the board, except that if the | 23 | | effective date of this amendatory Act of the 100th General | 24 | | Assembly is after July 31, 2018, then the City of Chicago | 25 | | shall, for budget year 2019 only, transfer only 50% of the | 26 | | proceeds to the board. Notwithstanding any other provision of |
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| 1 | | law: 50% of the foreign fire insurance proceeds received by | 2 | | the board shall be used for the maintenance, use, benefit, or | 3 | | enhancement of fire stations or training facilities used by | 4 | | the active members of the fire department; 25% of the foreign | 5 | | fire insurance proceeds received by the board shall be used | 6 | | for the maintenance, use, benefit, or enhancement of emergency | 7 | | response vehicles, tools, and equipment used by the active | 8 | | members of the department; and 25% of the foreign fire | 9 | | insurance proceeds received by the board shall be used for the | 10 | | maintenance and enhancement of the department and for the use | 11 | | and benefit of the active members of the department in a manner | 12 | | otherwise consistent with this subsection. Foreign fire | 13 | | insurance proceeds may not be used to purchase, maintain, or | 14 | | enhance personal property of a member of the department, | 15 | | except for personal property used in the performance of his or | 16 | | her duties or training activities. | 17 | | (c) The provisions of this Section shall be the exclusive | 18 | | power of the
State, pursuant to subsection (h) of Section 6 of | 19 | | Article VII of the
Constitution.
| 20 | | (Source: P.A. 100-656, eff. 7-31-18.)
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
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