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90_HB1399
55 ILCS 5/5-1047 from Ch. 34, par. 5-1047
55 ILCS 5/5-1047.5 new
65 ILCS 5/11-19-4 from Ch. 24, par. 11-19-4
65 ILCS 5/11-19-4.5 new
Amends the Illinois Municipal Code and the Counties Code.
Limits a municipality's or county's authority to directly
provide a waste collection, disposal or recycling service to
its residents when, by doing so, it displaces a private
company providing the same service. Requires a public
hearing, 5 years notice, and compensation to a displaced
company; provides exceptions. Preempts home rule powers.
LRB9000085DPccA
LRB9000085DPccA
1 AN ACT to amend the Counties Code by changing Section
2 5-1047 and adding Section 5-1047.5 and to amend the Illinois
3 Municipal Code by changing Section 11-19-4 and adding Section
4 11-19-4.5.
5 Be it enacted by the People of the State of Illinois,
6 represented in the General Assembly:
7 Section 5. The Counties Code is amended by changing
8 Section 5-1047 and adding Section 5-1047.5 as follows:
9 (55 ILCS 5/5-1047) (from Ch. 34, par. 5-1047)
10 Sec. 5-1047. Garbage, waste and refuse facilities.
11 Except as provided in Section 5-1047.5, a county board may
12 furnish grounds or other facilities for the disposal,
13 treatment or recycling of garbage, waste and refuse by
14 sanitary landfill methods or other appropriate technologies
15 and may charge a reasonable fee on the basis of weight for
16 disposal, treatment or recycling at such facility, and may
17 acquire property necessary or appropriate for such disposal
18 grounds or other facilities. The county board may issue and
19 sell revenue bonds, payable solely from revenues or income
20 derived from the operation of such dumping or disposal
21 grounds, or other facilities for the purpose of acquiring,
22 furnishing and operating such garbage and refuse disposal
23 grounds and other facilities and their improvement or
24 extension from time to time and of paying cost thereof
25 including engineering, inspection, legal and financial fees
26 and costs, working capital, interest on such bonds during
27 construction and for a reasonable period thereafter,
28 establishment of reserves to secure such bonds and all other
29 expenditures of the county incidental and necessary or
30 convenient thereto. In addition the county board may from
31 time to time issue revenue bonds to refund any such bonds at
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1 maturity or pursuant to redemption provisions or, with the
2 consent of the holders, at any time before maturity.
3 Bonds issued under this Section must be authorized by
4 ordinance adopted by the county board. To secure payment of
5 such bonds, the ordinance shall set forth the covenants and
6 undertakings of the county in connection with the issuance
7 thereof, and the issuance of additional bonds payable from
8 the revenues or income to be derived from the operation of
9 any grounds or other facilities for the disposal or recycling
10 of refuse, as the case may be, as well as the use and
11 operation thereof. No such bonds may be payable from taxes
12 nor constitute an indebtedness of the county within the
13 meaning of constitutional provisions and limitations, and
14 such fact shall be plainly stated on each bond.
15 Such bonds shall bear such date or dates, mature at such
16 time or serially at such times not more than 40 years from
17 their respective dates, may bear interest at a rate not
18 exceeding the rate specified in the general interest rate law
19 for units of local government, per year, payable
20 semi-annually, may be in such form, may carry such
21 registration privileges, may be executed in such manner, may
22 be payable at such place or places, may be subject to
23 redemption in such manner, and upon such terms with or
24 without premium as is stated on the face thereof, and may be
25 executed in such manner by such officers and may contain such
26 terms and covenants, all as provided by the ordinance
27 authorizing the issue.
28 Such bonds shall be sold in such manner as the board
29 determines.
30 Notwithstanding the form or tenor thereof, all such bonds
31 are negotiable unless it is expressly stated on their face
32 that they are non-negotiable.
33 If any officer whose signature appears on such bonds or
34 on coupons attached thereto is no longer an officer when the
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1 bonds are delivered to the purchaser, the signature is
2 nevertheless valid and sufficient for all purposes to the
3 same effect as if that officer was in office when the bonds
4 were delivered.
5 In order to secure repayment of revenue bonds issued to
6 finance regional pollution control facilities, to further
7 this State's policies and purposes, to advance the public
8 purposes served by resource recovery, and to authorize the
9 implementation of those solid waste management policies
10 counties deem in the public interest, any county which has
11 prepared a solid waste management plan or is a signatory to a
12 plan providing for the management of solid waste generated by
13 more than one county or municipality, shall have the
14 authority to require by ordinance, license, contract or other
15 means that all or any portion of solid waste, garbage, refuse
16 and ashes generated within the unincorporated areas of a
17 county be delivered to a regional pollution control facility
18 designated by the county board or a transfer station serving
19 such facility for treatment or disposal of such material.
20 Such ordinance, license, contract or other means may be
21 utilized by a county to ensure a constant flow of solid waste
22 to the facility notwithstanding the fact that competition may
23 be displaced or that such measures have an anti-competitive
24 effect. A county may contract with private industry to
25 operate the designated facility and may enter into contracts
26 with private firms or local governments for the delivery of
27 waste to the facility. Signatories to a solid waste
28 management plan shall have the right of first access to the
29 capacity of the facility notwithstanding such contracts with
30 private firms or other units of local government.
31 (Source: P.A. 86-962; 86-1028.)
32 (55 ILCS 5/5-1047.5 new)
33 Sec. 5-1047.5. Displacement of private waste companies.
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1 (a) For purposes of this Section, "displace" or
2 "displacement" means a county's provision of a service, or
3 enactment of an ordinance to provide a service, that
4 prohibits a private company from providing the same service
5 and which the company is providing at the time the decision
6 to displace is made. "Displace" or "displacement" does not
7 mean: (1) competition between the public sector and private
8 companies for individual contracts; (2) situations where a
9 county, at the end of a contract with a private company, do
10 not renew the contract and award the contract to another
11 private company; (3) situations where action is taken against
12 a private company because the company has acted in a manner
13 threatening to the health and safety of county residents or
14 resulting in a substantial public nuisance; (4) situations
15 where action is taken against a private company because the
16 company has materially breached its contract with the county;
17 (5) situations where a private company refuses to continue
18 operations under the terms and conditions of its existing
19 agreement during the 5-year notice period; or (6) entering
20 into a contract with a private company to provide a service
21 so long as the contract is not entered into pursuant to an
22 ordinance which displaces or authorizes the displacement of
23 another private company providing the same service.
24 (b) No county or combination of counties shall displace
25 a private company providing a garbage, waste, or refuse
26 disposal or recycling service without first (1) holding at
27 least one public hearing seeking comment on the advisability
28 of the county providing that service; (2) providing at least
29 45 days written notice of the hearing, delivered by first
30 class mail to all private companies that provide the service
31 in the county or counties and that the county or counties are
32 able to identify through local government records; and (3)
33 providing public notice of the hearing. Following the public
34 hearing required by this subsection, but in no event longer
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1 than one year after the hearing, the county or counties may
2 proceed to take measures necessary to provide the garbage,
3 waste or refuse disposal or recycling service.
4 (c) Before a county or combination of counties engages
5 in the actual provision of a garbage, waste or refuse
6 disposal or recycling service that displaces a private
7 company, the county or counties shall:
8 (1) Provide 5 years notice to the private company
9 or, as an alternative to delaying displacement during the
10 5-year notice period, the county or counties may pay a
11 displaced company an amount equal to the company's
12 preceding 12 months' gross receipts for the garbage,
13 waste or refuse disposal or recycling service in the
14 displacement area. The 5-year period shall lapse as to
15 any private company being displaced when that company
16 ceases to provide service within the displacement area.
17 (2) Negotiate with the displaced company to
18 compensate the company for actual losses incurred from
19 the displacement and pay an agreed amount to the company
20 or, as an alternative to negotiating compensation, pay
21 the displaced company an amount equal to the company's
22 gross receipts during the 3-year period preceding
23 displacement.
24 (d) This Section applies to a county or counties
25 electing to provide garbage, waste or refuse disposal or
26 recycling services in combination with one or more than one
27 county, municipality or any other local government entity
28 exercising the powers granted under Section 5-1047 of this
29 Code or Division 19 of the Illinois Municipal Code. In the
30 case of a county providing the service in combination with
31 one or more counties, municipalities or other local
32 government entities, the combined entity is responsible for
33 meeting the requirements of this Section.
34 Home rule units may not provide waste collection,
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1 disposal or recycling services in a manner inconsistent with
2 this Section. This subsection is a limitation under
3 subsection (i) of Section 6 of Article VII of the Illinois
4 Constitution on the concurrent exercise by home rule units of
5 powers and functions exercised by the State.
6 Section 10. The Illinois Municipal Code is amended by
7 changing Section 11-19-4 and adding Section 11-19-4.5 as
8 follows:
9 (65 ILCS 5/11-19-4) (from Ch. 24, par. 11-19-4)
10 Sec. 11-19-4. Except as otherwise provided in this
11 Division, the corporate authorities of each city, village and
12 incorporated town, whether organized under the general law or
13 special charter, with a population of less than 500,000, may
14 establish and maintain systems or plants, by contract or by
15 direct provision, for the collection and disposal, treatment
16 or recycling or solely for the collection or solely for the
17 disposal, treatment or recycling of garbage, refuse and ashes
18 in the city, village or incorporated town and for this
19 purpose may levy a tax. In municipalities with a population
20 of less than 25,001, the tax rate may not exceed .20% or the
21 rate limit in effect on July 1, 1967, whichever is greater,
22 of the value, as equalized or assessed by the Department of
23 Revenue, on all of the taxable property in the city or
24 village for the current year. In municipalities with a
25 population of more than 25,000 the tax rate may not exceed
26 .10% or the rate limit in effect on July 24, 1969, whichever
27 is greater, of the value as equalized or assessed by the
28 Department of Revenue on all of the taxable property in the
29 city or village for the current year. The annual garbage tax
30 shall be in addition to the amount authorized to be levied
31 for general purposes as provided by Section 8-3-1.
32 The foregoing limitations upon tax rates, insofar as they
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1 are applicable to cities, villages and incorporated towns of
2 less than 500,000 population, may be increased or decreased
3 under the referendum provisions of the General Revenue Law of
4 Illinois.
5 The corporate authorities may, in addition to the levy of
6 a garbage tax, finance the establishment and maintenance of
7 systems or plants, by contract or by direct provision, for
8 the collection and disposal, treatment or recycling or solely
9 for the collection or solely for the disposal, treatment or
10 recycling of garbage, refuse and ashes by service charges to
11 be collected from persons, firms and corporations receiving
12 service. Such service charges shall be established as can
13 reasonably be expected to yield revenues not in excess of
14 contract obligations and the costs of operation, maintenance,
15 and an adequate depreciation fund. If a city, village or
16 incorporated town assesses a service charge, the schedule of
17 charges shall be adopted by ordinance, and a copy of the
18 schedule shall be furnished to each customer.
19 (Source: P.A. 84-963.)
20 (65 ILCS 5/11-19-4.5 new)
21 Sec. 11-19-4.5. Displacement of private waste companies.
22 (a) As used in this Section:
23 "Combination of municipalities" includes any city,
24 village, or incorporated town electing to provide a waste
25 collection, disposal, or recycling service in combination
26 with one or more than one city, village, incorporated town,
27 county, or any other local government entity exercising
28 powers granted in this Division or Section 5-1047 of the
29 County Code and also includes a Municipal Joint Action Agency
30 created under Section 3.2 of the Intergovernmental
31 Cooperation Act.
32 "Displace" or "displacement" means a municipality's or
33 combination of municipalities' provision of a service, or
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1 enactment of an ordinance to provide a service, that
2 prohibits a private company from providing the same service
3 and which the company is providing at the time the decision
4 to displace is made. "Displace" or "displacement" does not
5 mean: (1) competition between the public sector and private
6 companies for individual contracts; (2) situations where a
7 municipality or municipalities, at the end of a contract with
8 a private company, do not renew the contract and award the
9 contract to another private company; (3) situations where
10 action is taken against a private company because the company
11 has acted in a manner threatening to the health and safety of
12 a municipality's or municipalities' residents or resulting in
13 a substantial public nuisance; (4) situations where action is
14 taken against a private company because the company has
15 materially breached its contract with the municipality or
16 municipalities; (5) situations where a private company
17 refuses to continue operations under the terms and conditions
18 of its existing agreement during the 5-year notice period;
19 (6) entering into a contract with a private company to
20 provide a service so long as the contract is not entered into
21 pursuant to an ordinance which displaces or authorizes the
22 displacement of another private company providing the same
23 service.
24 "Waste" means garbage, refuse or ashes as defined in
25 Section 11-19-2.
26 (b) No municipality or combination of municipalities
27 shall displace a private company providing a waste
28 collection, disposal or recycling service without first (1)
29 holding at least one public hearing seeking comment on the
30 advisability of the municipality or municipalities providing
31 that service; (2) providing at least 45 days' written notice
32 of the hearing, delivered by first class mail to all private
33 companies that provide the service in the municipality or
34 municipalities and that the municipality or municipalities
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1 are able to identify through local government records; and
2 (3) providing public notice of the hearing. Following the
3 public hearing required by this subsection, but in no event
4 longer than one year after the hearing, the municipality or
5 municipalities may proceed to take measures necessary to
6 provide the waste collection, disposal or recycling service.
7 (c) Before a municipality or municipalities engage in
8 the actual provision of the waste collection, disposal or
9 recycling service that displaces the private company, the
10 municipality or municipalities shall:
11 (1) Provide 5 years notice to the private company
12 or, as an alternative to delaying displacement during the
13 5-year notice period, a municipality or municipalities
14 may pay a displaced company an amount equal to the
15 company's preceding 12 months' gross receipts for the
16 waste collection, disposal or recycling service in the
17 displacement area. The 5-year period shall lapse as to
18 any private company being displaced when that company
19 ceases to provide service within the displacement area.
20 (2) Negotiate with the displaced company to
21 compensate the company for actual losses incurred from
22 the displacement and pay an agreed amount to the company,
23 or, as an alternative to negotiating compensation, pay
24 the displaced company an amount equal to the company's
25 gross receipts during the 3-year period preceding
26 displacement.
27 (d) Home rule units may not provide waste collection,
28 disposal or recycling services in a manner inconsistent with
29 this Section. This subsection is a limitation under
30 subsection (i) of Section 6 of Article VII of the Illinois
31 Constitution on the concurrent exercise by home rule units of
32 powers and functions exercised by the State.