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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.)