State of Illinois
90th General Assembly
Legislation

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90_SB0293

      70 ILCS 3010/1            from Ch. 42, par. 319.1
      70 ILCS 3010/7            from Ch. 42, par. 319.7
          Amends the Sanitary District Revenue Bond Act.  Makes the
      Act  applicable  to  the  North  Shore   Sanitary   District.
      Authorizes   discontinuance  of  water  service  or  sewerage
      service, or both, to a premises within  a  sanitary  district
      when  payment  of  the rate or charge for sewerage service to
      the premises has become delinquent.  States that the provider
      of sewerage service  shall  not  request  discontinuation  of
      water  service  before sending a notice of the delinquency to
      the sewer user and affording the user an  opportunity  to  be
      heard.   Provides  that a sanitary district shall reimburse a
      water service provider for any lost  water  service  revenues
      and  the  costs  of  discontinuing  water  service  and shall
      indemnify the water service provider  for  any  judgment  and
      related  attorney's  fees  resulting  from an action based on
      provisions authorizing discontinuance of water service.
                                                    LRB9000139DNmbA
                                              LRB9000139DNmbA
 1        AN ACT to amend the Sanitary District Revenue Bond Act by
 2    changing Sections 1 and 7.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The  Sanitary  District  Revenue Bond Act is
 6    amended by changing Sections 1 and 7 as follows:
 7        (70 ILCS 3010/1) (from Ch. 42, par. 319.1)
 8        Sec. 1. When used in this Act:
 9        "Sewerage system" means and includes any or  all  of  the
10    following:  a  sewage  treatment plant or plants, collecting,
11    intercepting  and  outlet  sewers,  force  mains,   conduits,
12    lateral  sewers  and  extensions,  pumping  stations, ejector
13    stations,  and  all  other  appurtenances,   extensions,   or
14    improvements  necessary  or  useful  and  convenient  for the
15    collection, treatment, and disposal, in a sanitary manner, of
16    sewage and industrial wastes.  The  term  also  includes  the
17    disconnection  of storm water drains and constructing outlets
18    therefor, where, in any  case,  such  work  is  necessary  to
19    relieve  existing  sanitary  sewers  of storm water loads, in
20    order to permit the  efficient  operation  of  such  sanitary
21    sewers  for collection, treatment, and disposal of sewage and
22    industrial wastes.
23        "Sanitary district" means a sanitary  district  organized
24    and  created  under  any of the laws of the State of Illinois
25    having a population of less than 500,000  and  also  means  a
26    sanitary  district  organized  under the North Shore Sanitary
27    District Act and any drainage district which comes within the
28    terms of "An Act relating to drainage districts that  collect
29    and  convey  sewage  and other wastes through long, continued
30    and common usage of district drainage facilities", enacted by
31    the 73rd General Assembly.
                            -2-               LRB9000139DNmbA
 1        "Board of trustees" means the  board  of  trustees  of  a
 2    sanitary   district   or  the  commissioners  of  a  drainage
 3    district.
 4        "Municipality" means a  city,  village,  or  incorporated
 5    town  in  the  State  of Illinois having a population of less
 6    than 500,000.
 7        "Corporate authorities" means the city council or similar
 8    body of cities and the board of trustees or similar  body  of
 9    villages or incorporated towns.
10    (Source: Laws 1963, p. 2986.)
11        (70 ILCS 3010/7) (from Ch. 42, par. 319.7)
12        Sec.  7.  The  board of trustees of any sanitary district
13    that owns and operates or that may hereafter own and  operate
14    a   sewerage   system   constructed  or  acquired  under  the
15    provisions of any law of this State has the  power  to  make,
16    enact,  and  enforce all needful rules and regulations in the
17    construction,    acquisition,     improvement,     extension,
18    management,  and  maintenance  of its sewerage system and for
19    the use thereof. The board of trustees  of  such  a  sanitary
20    district  also  has the power to make, enact, and enforce all
21    needful  rules,   regulations,   and   ordinances   for   the
22    improvement,  care,  and  protection  of its sewerage system,
23    which may be conducive to  the  preservation  of  the  public
24    health, comfort, and convenience, and to render the sewage of
25    the  sanitary district harmless in so far as it is reasonably
26    possible to do so.
27        The board of trustees of such a sanitary district has the
28    power, by ordinance, to charge the  inhabitants  thereof  for
29    the  use  and service of its sewerage system and to establish
30    charges or rates for that purpose. Where bonds are issued  as
31    provided  in  sections  2  and  3  of  this Act, the board of
32    trustees shall establish rates or charges as provided in this
33    section, and these charges or rates shall  be  sufficient  at
                            -3-               LRB9000139DNmbA
 1    all  times  to  pay the cost of operation and maintenance, to
 2    provide  an  adequate  depreciation  fund,  and  to  pay  the
 3    principal of and interest upon all revenue bonds issued under
 4    sections 2 and 3 hereof.
 5        A depreciation fund is a fund for  such  replacements  as
 6    may  be  necessary  from  time  to  time  for  the  continued
 7    effective   and   efficient  operation  of  the  system.  The
 8    depreciation fund shall not be allowed to accumulate beyond a
 9    reasonable amount necessary for that purpose, and  shall  not
10    be used for extensions to the system.
11        Charges  or  rates  shall  be  established,  revised, and
12    maintained by ordinance and become payable as  the  board  of
13    trustees  may  determine  by ordinance. Such charges or rates
14    shall be liens  upon  the  real  estate  upon  or  for  which
15    sewerage  service  is supplied; provided, however, such liens
16    shall not attach to such real estate until  such  charges  or
17    rates  have become delinquent as provided by the ordinance of
18    the sanitary district fixing a delinquency date.  A  lien  is
19    created  under  the  preceding  sentence only if the sanitary
20    district sends to the owner or owners of record of  the  real
21    estate,   as  referenced  by  the  taxpayer's  identification
22    number, (i) a copy of each delinquency  notice  sent  to  the
23    person  who  is  delinquent in paying the charges or rates or
24    other notice sufficient to inform  the  owner  or  owners  of
25    record,   as  referenced  by  the  taxpayer's  identification
26    number, that the charges or rates have become delinquent  and
27    (ii)  a notice that unpaid charges or rates may create a lien
28    on the real  estate  under  this  Section.  Nothing  in  this
29    Section  shall  be  construed to give the sanitary district a
30    preference over  the  rights  of  any  purchaser,  mortgagee,
31    judgment  creditor  or other lien holder arising prior to the
32    filing in the office of the recorder of the county  in  which
33    such  real  estate  is  located,  or  in  the  office  of the
34    registrar of titles of such county if the  property  affected
                            -4-               LRB9000139DNmbA
 1    is  registered  under  the  Torrens System, of notice of said
 2    lien.  The notice shall consist of a sworn statement  setting
 3    out  (1)  a description of the real estate sufficient for the
 4    identification  thereof,  upon  or  for  which  the  sewerage
 5    service was supplied, (2) the amount or amounts of money  due
 6    for  such  sewerage  service,  and (3) the date or dates when
 7    such  amount  or  amounts  became  delinquent.  The  sanitary
 8    district shall send a copy of the notice of the lien  to  the
 9    owner  or  owners of record of the real estate, as referenced
10    by  the  taxpayer's  identification  number.   The   sanitary
11    district  shall have the power to foreclose such lien in like
12    manner  and  with  like  effect  as  in  the  foreclosure  of
13    mortgages on real estate.
14        The payment of delinquent charges for sewerage service to
15    any premises may be  enforced  by  discontinuing  either  the
16    water  service  or  the sewerage service to that premises, or
17    both.  A rate or charge is delinquent if it is more  than  30
18    days   overdue.   Any  public  or  municipal  corporation  or
19    political subdivision of the State furnishing  water  service
20    to  a  premises  (i)  shall  discontinue  that  service  upon
21    receiving  written notice from the sanitary district in which
22    the premises lies that payment of  the  rate  or  charge  for
23    sewerage  service  to  the premises has become delinquent and
24    (ii) shall not resume water service until receiving a similar
25    notice that the delinquency has been removed. The provider of
26    sewerage service shall not request discontinuation  of  water
27    service  before  sending  a  notice of the delinquency to the
28    sewer user and affording the user an opportunity to be heard.
29    The sanitary district shall reimburse the public or municipal
30    corporation or political subdivision of  the  State  for  the
31    reasonable  cost  of the discontinuance and the resumption of
32    water service.  The sanitary district may contract  with  any
33    privately  owned  public  utility  for  the discontinuance of
34    water service to a premises with respect to which the payment
                            -5-               LRB9000139DNmbA
 1    of  a  rate  or  charge  for  sewerage  service  has   become
 2    delinquent.  The  sanitary district shall reimburse the water
 3    service provider for any lost water service revenues and  the
 4    costs of discontinuing water service, and shall indemnify the
 5    water   service   provider   for  any  judgment  and  related
 6    attorney's  fees  resulting  from  an  action  based  on  any
 7    provision of this paragraph.
 8        The sanitary district also has the power,  from  time  to
 9    time, to sue the owner, occupant or user of that real estate,
10    or  a  person  receiving  any direct or indirect benefit from
11    such services, in a civil action to  recover  money  due  for
12    sewerage  services,  plus  a reasonable attorney's fee, to be
13    fixed by the court;  provided,  however,  that  the  sanitary
14    district  shall  give  notice  of its intention to bring such
15    action to the owner of record by regular mail not less than 7
16    days prior to filing such civil action.
17        Judgment in  a  civil  action  brought  by  the  sanitary
18    district to recover or collect such charges shall not operate
19    as  a  release or waiver of the lien upon the real estate for
20    the  amount  of  the  judgment.   Only  satisfaction  of  the
21    judgment or the filing of a release and satisfaction of  lien
22    shall  release said lien.  The lien for charges on account of
23    services or benefits provided for in  this  Section  and  the
24    rights  created  hereunder shall be in addition to and not in
25    derogation of the  lien  upon  real  estate  created  by  and
26    imposed for general real estate taxes.
27    (Source: P.A. 87-1197.)

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