[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
| [ Senate Amendment 003 ] |
92_HB2380enr HB2380 Enrolled LRB9206653OBpc 1 AN ACT concerning bonds. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Construction Bond Act is amended 5 by changing Section 3 as follows: 6 (30 ILCS 550/3) 7 Sec. 3. Builder or developer cash bond or other surety. 8 (a) A county or municipality may not require a cash 9 bond, irrevocable letter of credit, surety bond, or letter of 10 commitment issued by a bank, savings and loan association, 11 surety, or insurance company from a builder or developer to 12 guarantee completion of a project improvement when the 13 builder or developer has filed with the county or municipal 14 clerk a current, irrevocable letter of credit, surety bond, 15 or letter of commitment issued by a bank, savings and loan 16 association, surety, or insurance company, deemed good and 17 sufficient by the county or municipality accepting such 18 security, in an amount equal to or greater than 110% of the 19 amount of the bid on each project improvement. A builder or 20 developer has the optionmay electto utilize a cash bond,an21 irrevocable letter of credit, surety bond, or letter of 22 commitment, issued by a bank, savings and loan association, 23 surety, or insurance company, deemed good and sufficient by 24 the county or municipality, to satisfy any cash bond 25 requirement established by a county or municipality. Except 26 for a municipality or county with a population of 1,000,000 27 or more, the county or municipality must approve and deem a 28 surety or insurance company good and sufficient for the 29 purposes set forth in this Section if the surety or insurance 30 company is authorized by the Illinois Department of Insurance 31 to sell and issue sureties in the State of Illinois. HB2380 Enrolled -2- LRB9206653OBpc 1 (b) If a county or municipality receives a cash bond, 2 irrevocable letter of credit, or surety bond from a builder 3 or developer to guarantee completion of a project 4 improvement, the county or municipality shall (i) register 5 the bond under the address of the project and the 6 construction permit number and (ii) give the builder or 7 developer a receipt for the bond. The county or municipality 8 shall establish and maintain a separate account for all cash 9 bonds received from builders and developers to guarantee 10 completion of a project improvement. 11 (c) The county or municipality shall refund a cash bond 12 to a builder or developer, or release the irrevocable letter 13 of credit or surety bond, within 60 days after the builder or 14 developer notifies the county or municipality in writing of 15 the completion of the project improvement for which the bond 16 was required. For these purposes, "completion" means that the 17 county or municipality has determined that the project 18 improvement for which the bond was required is complete or a 19 licensed engineer or licensed architect has certified to the 20 builder or developer and the county or municipality that the 21 project improvement has been completed to the applicable 22 codes and ordinances. The county or municipality shall pay 23 interest to the builder or developer, beginning 60 days after 24 the builder or developer notifies the county or municipality 25 in writing of the completion of the project improvement, on 26 any bond not refunded to a builder or developer, at the rate 27 of 1% per month. 28 (d) A home rule county or municipality may not require 29 or maintain cash bonds, irrevocable letters of credit, surety 30 bonds, or letters of commitment issued by a bank, savings and 31 loan association, surety, or insurance company from builders 32 or developers in a manner inconsistent with this Section. 33 This Section supercedes and controls over other provisions of 34 the Counties Code or Illinois Municipal Code as they apply to HB2380 Enrolled -3- LRB9206653OBpc 1 and guarantee completion of a project improvement that is 2 required by the county or municipality, regardless of whether 3 the project improvement is a condition of annexation 4 agreements. This Section is a denial and limitation under 5 subsection (i) of Section 6 of Article VII of the Illinois 6 Constitution on the concurrent exercise by a home rule county 7 or municipality of powers and functions exercised by the 8 State. 9 (Source: P.A. 89-518, eff. 1-1-97; 90-558, eff. 12-12-97.) 10 Section 10. The Counties Code is amended by changing 11 Sections 5-1041 and 5-1123 as follows: 12 (55 ILCS 5/5-1041) (from Ch. 34, par. 5-1041) 13 Sec. 5-1041. Maps, plats and subdivisions. A county board 14 may prescribe, by resolution or ordinance, reasonable rules 15 and regulations governing the location, width and course of 16 streets and highways and of floodplain, stormwater and 17 floodwater runoff channels and basins, and the provision of 18 necessary public grounds for schools, public libraries, parks 19 or playgrounds, in any map, plat or subdivision of any block, 20 lot or sub-lot or any part thereof or any piece or parcel of 21 land, not being within any city, village or incorporated 22 town. The rules and regulations may include such reasonable 23 requirements with respect to water supply and sewage 24 collection and treatment as may be established by the 25 Environmental Protection Agency, and such reasonable 26 requirements with respect to floodplain and stormwater 27 management as may be established by the County Stormwater 28 Management Committee established under Section 5-1062 of this 29 Code, and such reasonable requirements with respect to street 30 drainage and surfacing as may be established by the county 31 engineer or superintendent of highways and which by 32 resolution shall be deemed to be the minimum requirements in HB2380 Enrolled -4- LRB9206653OBpc 1 the interest of the health, safety, education and convenience 2 of the public of the county; and may provide by resolution 3 that the map, plat or subdivision shall be submitted to the 4 county board or to some officer to be designated by the 5 county board for their or his approval. The county board 6 shall have a qualified engineer make an estimate of the 7 probable expenditures necessary to enable any person to 8 conform with the standards of construction established by the 9 board pursuant to the provisions of this Section. Except as 10 provided in Section 3 of the Public Construction Bond Act, 11 each person who seeks the county board's approval of a map, 12 plat or subdivision shall post a good and sufficient cash 13 bond, irrevocable letter of credit, surety bond, or other 14 adequate security with the county clerk, in a penal sum 15 sufficient to cover the estimate of expenditures made by the 16 estimating engineer. The cash bond, irrevocable letter of 17 credit, surety bond, or other adequate security shall be 18 conditioned upon faithful adherence to the rules and 19 regulations of the county board promulgated pursuant to the 20 authorization granted to it by this Section or by Section 21 5-1062 of this Code, and in such cases no such map, plat or 22 subdivision shall be entitled to record in the proper county 23 or have any validity until it has been so approved. If the 24 county board requires a cash bond, letter of credit, surety, 25 or any other method to cover the costs and expenses and to 26 insure completion of the requirements, the requirements shall 27 be subject to the provisions of Section 5-1123 of this Code. 28 This Section is subject to the provisions of Section 5-1123. 29 The county board may, by resolution, provide a schedule 30 of fees sufficient to reimburse the county for the costs 31 incurred in reviewing such maps, plats and subdivisions 32 submitted for approval to the county board. The fees 33 authorized by this Section are to be paid into the general 34 corporate fund of the county by the party desiring to have HB2380 Enrolled -5- LRB9206653OBpc 1 the plat approved. 2 No officer designated by a county board for the approval 3 of plats shall engage in the business of surveying, and no 4 map, plat or subdivision shall be received for record or have 5 any validity which has been prepared by or under the 6 direction of such plat officer. 7 It is the intention of this amendatory Act of 1990 to 8 repeal the language added to Section 25.09 of "An Act to 9 revise the law in relation to counties", approved March 31, 10 1874, by P.A. 86-614, Section 25.09 of that Act being the 11 predecessor of this Section. 12 (Source: P.A. 90-558, eff. 12-12-97; 91-328, eff. 1-1-00.) 13 (55 ILCS 5/5-1123) 14 Sec. 5-1123. Builder or developer cash bond or other 15 surety. 16 (a) A county may not require a cash bond, irrevocable 17 letter of credit, surety bond, or letter of commitment issued 18 by a bank, savings and loan association, surety, or insurance 19 company from a builder or developer to guarantee completion 20 of a project improvement when the builder or developer has 21 filed with the county clerk a current, irrevocable letter of 22 credit, surety bond, or letter of commitment, issued by a 23 bank, savings and loan association, surety, or insurance 24 company, deemed good and sufficient by the county accepting 25 such security, in an amount equal to or greater than 110% of 26 the amount of the bid on each project improvement. A builder 27 or developer has the optionmay electto utilize a cash bond, 28anirrevocable letter of credit, surety bond, or letter of 29 commitment issued by a bank, savings and loan association, 30 surety, or insurance company, deemed good and sufficient by 31 the county, to satisfy any cash bond requirement established 32 by a county. The county must approve and deem a surety or 33 insurance company good and sufficient for the purposes set HB2380 Enrolled -6- LRB9206653OBpc 1 forth in this Section if the surety or insurance company is 2 authorized by the Illinois Department of Insurance to sell 3 and issue sureties in the State of Illinois. 4 (b) If a county receives a cash bond, irrevocable letter 5 of credit, or surety bond from a builder or developer to 6 guarantee completion of a project improvement, the county 7 shall (i) register the bond under the address of the project 8 and the construction permit number and (ii) give the builder 9 or developer a receipt for the bond. The county shall 10 establish and maintain a separate account for all cash bonds 11 received from builders and developers to guarantee completion 12 of a project improvement. 13 (c) The county shall refund a cash bond to a builder or 14 developer, or release the irrevocable letter of credit or 15 surety bond, within 60 days after the builder or developer 16 notifies the county in writing of the completion of the 17 project improvement for which the bond was required. For 18 these purposes, "completion" means that the county has 19 determined that the project improvement for which the bond 20 was required is complete or a licensed engineer or licensed 21 architect has certified to the builder or developer and the 22 county that the project improvement has been completed to the 23 applicable codes and ordinances. The county shall pay 24 interest to the builder or developer, beginning 60 days after 25 the builder or developer notifies the county in writing of 26 the completion of the project improvement, on any bond not 27 refunded to a builder or developer, at the rate of 1% per 28 month. 29 (d) A home rule county may not require or maintain cash 30 bonds, irrevocable letters of credit, surety bonds, or other 31 adequate securities from builders or developers in a manner 32 inconsistent with this Section. This Section supercedes and 33 controls over other provisions of this Code as they apply to 34 and guarantee completion of a project improvement that is HB2380 Enrolled -7- LRB9206653OBpc 1 required by the county. This Section is a denial and 2 limitation under subsection (i) of Section 6 of Article VII 3 of the Illinois Constitution on the concurrent exercise by a 4 home rule county of powers and functions exercised by the 5 State. 6 (Source: P.A. 89-518, eff. 1-1-97; 90-14, eff. 7-1-97; 7 90-558, eff. 12-12-97.) 8 Section 15. The Illinois Municipal Code is amended by 9 changing Sections 11-12-8 and 11-39-3 as follows: 10 (65 ILCS 5/11-12-8) (from Ch. 24, par. 11-12-8) 11 Sec. 11-12-8. Compliance of plat with map; designation of 12 public lands; approval; bond; order; failure to act upon 13 plat. The corporate authorities of the municipality shall 14 determine whether a proposed plat of subdivision or 15 resubdivision complies with the official map. To secure such 16 determination, the person requesting the subdivision or 17 resubdivision shall file four copies of a plat thereof with 18 the clerk of the municipality, and shall furnish therewith 19 four copies of all data necessary to show compliance with all 20 applicable municipal regulations and shall make application 21 for preliminary or final approval of the proposed plat. 22 Whenever the reasonable requirements provided by the 23 ordinance including the official map shall indicate the 24 necessity for providing for a school site, park site, or 25 other public lands within any proposed subdivision for which 26 approval has been requested, and no such provision has been 27 made therefor, the municipal authority may require that lands 28 be designated for such public purpose before approving such 29 plat. Whenever a final plat of subdivision, or part thereof, 30 has been approved by the corporate authorities as complying 31 with the official map and there is designated therein a 32 school site, park site or other public land, the corporate HB2380 Enrolled -8- LRB9206653OBpc 1 authorities having jurisdiction of such use, be it a school 2 board, park board or other authority, such authority shall 3 acquire the land so designated by purchase or commence 4 proceedings to acquire such land by condemnation within one 5 year from the date of approval of such plat; and if it does 6 not do so within such period of one year, the land so 7 designated may then be used by the owners thereof in any 8 other manner consistent with the ordinance including the 9 official map and the zoning ordinance of the municipality. 10 The corporate authorities may by ordinance provide that a 11 plat of subdivision may be submitted initially to the plan 12 commission for preliminary approval. The application for 13 preliminary approval shall show location and width of 14 proposed streets and public ways, shall indicate proposed 15 location of sewers and storm drains, proposed dedication of 16 public grounds, if any, lot sizes, proposed easements for 17 public utilities, and proposed method of sewage and waste 18 disposal, but need not contain specifications for proposed 19 improvements. 20 The plan Commission shall approve or disapprove the 21 application for preliminary approval within 90 days from the 22 date of the application or the filing by the applicant of the 23 last item of required supporting data, whichever date is 24 later, unless such time is extended by mutual consent. If 25 such plat is disapproved, then within said 90 days the plan 26 commission shall furnish to applicant in writing a statement 27 setting forth the reason for disapproval and specifying with 28 particularity the aspects in which the proposed plat fails to 29 conform to the ordinances including official map. If such 30 plat is approved the corporate authority shall accept or 31 reject said plat within 30 days after its next regular stated 32 meeting following the action of the plan commission. 33 Preliminary approval shall not qualify a plat for recording. 34 Application for final approval of a plat shall be made HB2380 Enrolled -9- LRB9206653OBpc 1 not later than one year after preliminary approval has been 2 granted. This application must be supported by such drawings, 3 specifications and bond as may be necessary to demonstrate 4 compliance with all requirements of this statute and such 5 regulations as the corporate authorities may provide by 6 ordinance under authority of this statute. This Section is 7 subject to the provisions of Section 11-39-3 of this Code. 8 The applicant may elect to have final approval of a 9 geographic part or parts of the plat that received 10 preliminary approval, and may delay application for approval 11 of other parts until a later date or dates beyond one year 12 with the approval of the municipal authorities; provided, all 13 facilities required to serve the part or parts for which 14 final approval is sought have been provided. In such case 15 only such part or parts of the plat as have received final 16 approval shall be recorded. 17 When a person submitting a plat of subdivision or 18 resubdivision for final approval has supplied all drawings, 19 maps and other documents required by the municipal ordinances 20 to be furnished in support thereof, and if all such material 21 meets all municipal requirements, the corporate authorities 22 shall approve the proposed plat within 60 days from the date 23 of filing the last required document or other paper or within 24 60 days from the date of filing application for final 25 approval of the plat, whichever date is later. The applicant 26 and the corporate authorities may mutually agree to extend 27 the 60 day period. 28 Except as provided in Section 3 of the Public 29 Construction Bond Act, the corporate authorities may provide 30 that any person, firm or corporation seeking approval of a 31 subdivision or resubdivision map or plat shall post a good 32 and sufficient cash bond, irrevocable letter of credit, or 33 surety bond with the municipal clerk in a penal sum 34 sufficient to cover the estimate made by the municipal HB2380 Enrolled -10- LRB9206653OBpc 1 engineer, or other authorized person, of expenditures, 2 including but not limited to reasonable inspection fees to be 3 borne by the applicant, necessary to conform to the 4 requirements established and conditioned upon completion of 5 said requirements in a reasonable time. The corporate 6 authorities may, by ordinance, prescribe the form of the cash 7 bond, irrevocable letter of credit, or surety bond and may 8 require surety to be approved by the corporate authorities; 9 provided, that a municipality may permit the depositing of 10 cash or other security acceptable to the corporate 11 authorities, to complete the improvements required in lieu of 12 a bond if it shall so provide by ordinance; and further 13 provided, that no bond or security shall be required to be 14 filed until the corporate authorities have approved the plat 15 in all other respects and have notified the applicant of such 16 approval. If the corporate authorities require a cash bond, 17 letter of credit, surety, or any other method to cover the 18 costs and expenses and to insure completion of the 19 requirementsIf the corporate authorities require a cash20bond, the requirementsrequirementshall be subject to the 21 provisions of Section 11-39-3 of this Code. 22 If the preliminary or final plat is approved, the 23 municipal clerk shall attach a certified copy of the order or 24 resolution of approval to a copy of the plat. If the proposed 25 plat is disapproved, the order or resolution shall state the 26 reasons for the disapproval, specifying with particularity 27 the aspects in which the proposed plat fails to conform to 28 the official map. A copy of the order or resolution shall be 29 filed in the office of the municipal clerk. 30 If the corporate authorities fail to act upon the final 31 plat within the time prescribed the applicant may, after 32 giving 5 days written notice to the corporate authorities, 33 file a complaint for summary judgment in the circuit court 34 and upon showing that the corporate authorities have failed HB2380 Enrolled -11- LRB9206653OBpc 1 to act within the time prescribed the court shall enter an 2 order authorizing the recorder to record the plat as finally 3 submitted without the approval of the corporate authorities. 4 A plat so recorded shall have the same force and effect as 5 though that plat had been approved by the corporate 6 authorities. If the corporate authorities refuse to act upon 7 the final plat within the time prescribed and if their 8 failure to act thereon is wilful, upon such showing and upon 9 proof of damages the municipality shall be liable therefor. 10 (Source: P.A. 90-558, eff. 12-12-97; 91-328, eff. 1-1-00.) 11 (65 ILCS 5/11-39-3) 12 Sec. 11-39-3. Builder or developer cash bond or other 13 surety. 14 (a) A municipality may not require a cash bond, 15 irrevocable letter of credit, surety bond, or letter of 16 commitment issued by a bank, savings and loan association, 17 surety, or insurance company from a builder or developer to 18 guarantee completion of a project improvement when the 19 builder or developer has filed with the municipal clerk a 20 current, irrevocable letter of credit, surety bond, or letter 21 of commitment issued by a bank, savings and loan association, 22 surety, or insurance company, deemed good and sufficient by 23 the municipality accepting such security, in an amount equal 24 to or greater than 110% of the amount of the bid on each 25 project improvement. A builder or developer has the option 26may electto utilize a cash bond,anirrevocable letter of 27 credit, surety bond, or letter of commitment, issued by a 28 bank, savings and loan association, surety, or insurance 29 company, deemed good and sufficient by the municipality, to 30 satisfy any cash bond requirement established by a 31 municipality. Except for a municipality or county with a 32 population of 1,000,000 or more, the municipality must 33 approve and deem a surety or insurance company good and HB2380 Enrolled -12- LRB9206653OBpc 1 sufficient for the purposes set forth in this Section if the 2 surety or insurance company is authorized by the Illinois 3 Department of Insurance to sell and issue sureties in the 4 State of Illinois. 5 (b) If a municipality receives a cash bond, irrevocable 6 letter of credit, or surety bond from a builder or developer 7 to guarantee completion of a project improvement, the 8 municipality shall (i) register the bond under the address of 9 the project and the construction permit number and (ii) give 10 the builder or developer a receipt for the bond. The 11 municipality shall establish and maintain a separate account 12 for all cash bonds received from builders and developers to 13 guarantee completion of a project improvement. 14 (c) The municipality shall refund a cash bond to a 15 builder or developer, or release the irrevocable letter of 16 credit or surety bond within 60 days after the builder or 17 developer notifies the municipality in writing of the 18 completion of the project improvement for which the bond was 19 required. For these purposes, "completion" means that the 20 municipality has determined that the project improvement for 21 which the bond was required is complete or a licensed 22 engineer or licensed architect has certified to the builder 23 or developer and the municipality that the project 24 improvement has been completed to the applicable codes and 25 ordinances. The municipality shall pay interest to the 26 builder or developer, beginning 60 days after builder or 27 developer notifies the municipality in writing of the 28 completion of the project improvement, on any bond not 29 refunded to a builder or developer, at the rate of 1% per 30 month. 31 (d) A home rule municipality may not require or maintain 32 cash bonds, irrevocable letters of credit, surety bonds, or 33 letters of commitment issued by a bank, savings and loan 34 association, surety, or insurance company from builders or HB2380 Enrolled -13- LRB9206653OBpc 1 developers in a manner inconsistent with this Section. This 2 Section supercedes and controls over other provisions of this 3 Code as they apply to and guarantee completion of a project 4 improvement that is required by the municipality, regardless 5 of whether the project improvement is a condition of 6 annexation agreements. This Section is a denial and 7 limitation under subsection (i) of Section 6 of Article VII 8 of the Illinois Constitution on the concurrent exercise by a 9 home rule municipality of powers and functions exercised by 10 the State. 11 (Source: P.A. 89-518, eff. 1-1-97; 90-558, eff. 12-12-97.)