Full Text of SB3108 098th General Assembly
SB3108eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Local Governmental and Governmental | 5 | | Employees Tort
Immunity Act is amended by changing Section | 6 | | 9-107 as follows:
| 7 | | (745 ILCS 10/9-107) (from Ch. 85, par. 9-107)
| 8 | | Sec. 9-107. Policy; tax levy.
| 9 | | (a) The General Assembly finds that the purpose of this | 10 | | Section is to
provide an extraordinary tax for funding expenses | 11 | | relating to (i) tort liability,
(ii) liability relating to | 12 | | actions brought under the federal Comprehensive Environmental | 13 | | Response, Compensation, and Liability Act of 1980 or the | 14 | | Environmental Protection Act, but only until December 31, 2010, | 15 | | (iii) insurance, and (iv) risk management programs. Thus, the | 16 | | tax has been excluded from
various limitations otherwise | 17 | | applicable to tax levies. Notwithstanding the
extraordinary | 18 | | nature of the tax authorized by this Section, however, it has
| 19 | | become apparent that some units of
local government are using | 20 | | the tax revenue to fund expenses more properly paid
from | 21 | | general operating funds. These uses of the revenue are | 22 | | inconsistent with
the limited purpose of the tax authorization.
| 23 | | Therefore, the General Assembly declares, as a matter of |
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| 1 | | policy, that (i) the
use of the tax revenue authorized by this | 2 | | Section for purposes not expressly
authorized under this Act is | 3 | | improper and (ii) the provisions of this Section
shall be | 4 | | strictly construed
consistent with this declaration and the | 5 | | Act's express purposes.
| 6 | | (b) A local public entity may annually levy or have levied | 7 | | on
its behalf taxes upon all taxable property within its | 8 | | territory at
a rate that will produce a sum that will be | 9 | | sufficient to:
(i) pay the cost
of insurance, individual or | 10 | | joint self-insurance (including
reserves thereon), including | 11 | | all operating and administrative costs and
expenses directly | 12 | | associated therewith, claims services and risk management
| 13 | | directly attributable to loss prevention and loss reduction, | 14 | | legal services
directly attributable
to the insurance, | 15 | | self-insurance, or joint self-insurance program, and
| 16 | | educational, inspectional, and supervisory
services directly | 17 | | relating to loss prevention and loss reduction, participation
| 18 | | in a reciprocal
insurer as provided in Sections 72, 76, and 81 | 19 | | of the Illinois Insurance Code,
or participation in a
| 20 | | reciprocal insurer, all as provided in settlements or judgments | 21 | | under
Section 9-102, including all costs and reserves directly | 22 | | attributable to
being a member of an insurance
pool, under | 23 | | Section 9-103; (ii) pay the costs of and principal
and interest | 24 | | on bonds issued under Section 9-105; (iii) pay judgments
and | 25 | | settlements under Section 9-104 of this Act; (iv) discharge
| 26 | | obligations under Section 34-18.1 of the School
Code; (v) pay |
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| 1 | | judgments and settlements under the federal Comprehensive | 2 | | Environmental Response, Compensation, and Liability Act of | 3 | | 1980 and the Environmental Protection Act, but only until | 4 | | December 31, 2010; (vi) pay the costs authorized by the | 5 | | Metro-East Sanitary District Act of 1974 as provided in | 6 | | subsection (a) of Section 5-1 of that Act (70 ILCS 2905/5-1); | 7 | | and (vii)
pay the cost of
risk management programs.
Provided it | 8 | | complies with any other applicable
statutory requirements, the | 9 | | local public entity may self-insure and
establish reserves for | 10 | | expected losses for any property damage or for any
liability or | 11 | | loss for which
the local public entity is authorized to levy or | 12 | | have levied on its behalf
taxes for the purchase of insurance | 13 | | or the payment of judgments or
settlements under this Section. | 14 | | The decision of the board to establish a
reserve shall be based | 15 | | on reasonable actuarial or insurance underwriting
evidence and | 16 | | subject to the limits and reporting provisions in Section
| 17 | | 9-103.
| 18 | | If a school district was a member of a | 19 | | joint-self-health-insurance
cooperative that had more | 20 | | liability in outstanding claims than revenue to pay
those | 21 | | claims, the school board of that district may by resolution
| 22 | | make a one-time transfer from any fund in which tort immunity | 23 | | moneys are
maintained to the fund
or funds from which
payments | 24 | | to a joint-self-health-insurance
cooperative can
be or have | 25 | | been made of an amount not to exceed the amount of the
| 26 | | liability claim that the school district
owes to the |
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| 1 | | joint-self-health-insurance cooperative or that the school | 2 | | district
paid within the 2 years immediately preceding the | 3 | | effective date of this
amendatory Act
of the 92nd General | 4 | | Assembly.
| 5 | | Funds raised pursuant to this Section shall only be used | 6 | | for the purposes
specified in this Act, including protection | 7 | | against and reduction of any
liability or loss described
| 8 | | hereinabove and under
Federal or State common or statutory law, | 9 | | the Workers' Compensation Act,
the Workers' Occupational | 10 | | Diseases Act , and the Unemployment Insurance Act or, in fire | 11 | | protection districts subject to the Property Tax Extension | 12 | | Limitation Law, the installation of sprinklers .
Funds
raised | 13 | | pursuant to this Section may be invested in any manner in which
| 14 | | other funds of local public entities may be invested under | 15 | | Section 2 of the
Public Funds Investment Act. Interest on such
| 16 | | funds shall be used only for purposes for which the funds can | 17 | | be used or,
if surplus, must be used for abatement of property
| 18 | | taxes levied by the local taxing entity.
| 19 | | A local public entity may enter into intergovernmental | 20 | | contracts with a
term of not to exceed 12 years for the | 21 | | provision of joint self-insurance
which contracts may include | 22 | | an obligation to pay a proportional share of a
general | 23 | | obligation or revenue bond or other debt instrument issued by a
| 24 | | local public entity which is a party to the intergovernmental | 25 | | contract and
is authorized by the terms of the contract to | 26 | | issue the bond or other debt
instrument. Funds due under such |
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| 1 | | contracts shall not be considered debt
under any constitutional | 2 | | or statutory limitation and the local public
entity may levy or | 3 | | have levied on its behalf taxes to pay for its
proportional | 4 | | share under the contract. Funds raised pursuant to
| 5 | | intergovernmental contracts for the provision of joint | 6 | | self-insurance may
only be used for the payment of any cost, | 7 | | liability or loss against which
a local public entity may | 8 | | protect itself or self-insure pursuant to Section
9-103 or for | 9 | | the payment of which such entity may levy a tax pursuant to
| 10 | | this Section, including tort judgments or settlements, costs
| 11 | | associated with the issuance, retirement or refinancing of the | 12 | | bonds or
other debt instruments, the repayment of the principal | 13 | | or interest of the
bonds or other debt instruments, the costs | 14 | | of the administration of the
joint self-insurance fund, | 15 | | consultant, and risk care management programs or
the costs of | 16 | | insurance. Any surplus returned to the local public entity
| 17 | | under the terms of the intergovernmental contract shall be used | 18 | | only for
purposes set forth in subsection (a) of Section 9-103 | 19 | | and Section 9-107 or for
abatement of property
taxes levied by | 20 | | the local taxing entity.
| 21 | | Any tax levied under this Section shall be levied and | 22 | | collected in
like manner with the general taxes of the entity | 23 | | and shall be exclusive
of and in addition to the amount of tax | 24 | | that entity is now or may
hereafter be authorized to levy for | 25 | | general purposes under any statute
which may limit the amount | 26 | | of tax which that entity may levy for general
purposes. The |
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| 1 | | county clerk of the county in which any part of the
territory | 2 | | of the local taxing entity is located, in reducing tax levies
| 3 | | under the provisions of any Act concerning the levy and | 4 | | extension of
taxes, shall not consider any tax provided for by | 5 | | this Section as a part
of the general tax levy for the purposes | 6 | | of the entity nor include such
tax within any limitation of the | 7 | | percent of the assessed valuation upon
which taxes are required | 8 | | to be extended for such entity.
| 9 | | With respect to taxes levied under this Section, either | 10 | | before, on, or
after the effective date of this amendatory Act | 11 | | of 1994:
| 12 | | (1) Those taxes
are excepted from and shall not be | 13 | | included within the rate limitation imposed
by law on taxes | 14 | | levied for general corporate purposes by the local public
| 15 | | entity authorized to levy a tax under this Section.
| 16 | | (2) Those taxes that a local public entity has levied | 17 | | in reliance on this
Section and that are excepted under | 18 | | paragraph (1) from
the
rate limitation imposed by law on | 19 | | taxes levied for general corporate purposes
by the local | 20 | | public entity are not
invalid because of any provision of
| 21 | | the law authorizing the local public entity's tax levy for | 22 | | general corporate
purposes that may be construed or may | 23 | | have been construed to restrict or limit
those taxes | 24 | | levied, and those taxes are hereby validated.
This | 25 | | validation of taxes levied applies to all cases pending on | 26 | | or after the
effective date of this amendatory Act of 1994.
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| 1 | | (3) Paragraphs (1) and (2) do not apply to a hospital | 2 | | organized under
Article 170 or 175 of the Township Code, | 3 | | under the Town Hospital Act, or under
the Township | 4 | | Non-Sectarian Hospital Act and do not give any authority to | 5 | | levy
taxes on behalf of such a hospital in excess of the | 6 | | rate limitation imposed by
law on taxes levied for general | 7 | | corporate purposes. A hospital organized under
Article 170 | 8 | | or 175 of the Township Code, under the Town Hospital Act, | 9 | | or under
the Township Non-Sectarian Hospital Act is not
| 10 | | prohibited from levying taxes in support of tort liability | 11 | | bonds if the taxes
do not cause the hospital's aggregate | 12 | | tax rate from exceeding the rate
limitation imposed by law | 13 | | on taxes levied for general corporate purposes.
| 14 | | Revenues derived from such tax shall be paid to the | 15 | | treasurer of the
local taxing entity as collected and used for | 16 | | the purposes of this
Section and of Section 9-102, 9-103, 9-104 | 17 | | or 9-105, as the case may
be. If payments on account of such | 18 | | taxes are insufficient during any
year to meet such purposes, | 19 | | the entity may issue tax anticipation
warrants against the | 20 | | current tax levy in the manner provided by statute.
| 21 | | (Source: P.A. 95-244, eff. 8-17-07; 95-723, eff. 6-23-08.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.
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