Public Act 93-0226

HB3402 Enrolled                      LRB093 09164 MKM 09396 b

    AN ACT concerning local government.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5. The Illinois State Auditing Act is amended by
changing Section 3-1 as follows:

    (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
    Sec. 3-1. Jurisdiction of Auditor  General.  The  Auditor
General has jurisdiction over all State agencies to make post
audits  and investigations authorized by or under this Act or
the Constitution.
    The  Auditor  General   has   jurisdiction   over   local
government agencies and private agencies only:
         (a)  to make such post audits authorized by or under
    this  Act as are necessary and incidental to a post audit
    of a State agency or of a program administered by a State
    agency involving public funds  of  the  State,  but  this
    jurisdiction  does  not  include  any authority to review
    local governmental agencies in the  obligation,  receipt,
    expenditure  or use of public funds of the State that are
    granted without limitation or condition imposed  by  law,
    other than the general limitation that such funds be used
    for public purposes;
         (b)  to  make  investigations authorized by or under
    this Act or the Constitution; and
         (c)  to  make  audits  of  the  records   of   local
    government   agencies   to   verify   actual   costs   of
    state-mandated  programs  when  directed  to do so by the
    Legislative Audit Commission at the request of the  State
    Board of Appeals under the State Mandates Act.
    In  addition  to  the  foregoing, the Auditor General may
conduct an audit of  the  Metropolitan  Pier  and  Exposition
Authority,   the   Regional   Transportation  Authority,  the
Suburban Bus Division, the Commuter  Rail  Division  and  the
Chicago  Transit  Authority  and any other subsidized carrier
when authorized by the Legislative  Audit  Commission.   Such
audit may be a financial, management or program audit, or any
combination thereof.
    The  audit  shall determine whether they are operating in
accordance with all applicable laws and regulations.  Subject
to  the  limitations  of  this  Act,  the  Legislative  Audit
Commission    may    by    resolution    specify   additional
determinations to be included in the scope of the audit.
    In addition to the foregoing, the  Auditor  General  must
also  conduct  a  financial  audit  of  the  Illinois  Sports
Facilities   Authority's  expenditures  of  public  funds  in
connection with the reconstruction,  renovation,  remodeling,
extension,  or improvement of all or substantially all of any
existing "facility", as that term is defined in the  Illinois
Sports Facilities Authority Act.
    The  Auditor  General  may  also  conduct  an audit, when
authorized  by  the  Legislative  Audit  Commission,  of  any
hospital which receives 10% or more  of  its  gross  revenues
from  payments  from  the  State  of  Illinois, Department of
Public Aid, Medical Assistance Program.
    The Auditor General is authorized  to  conduct  financial
and  compliance  audits  of  the  Illinois  Distance Learning
Foundation and the Illinois Conservation Foundation.
    As soon as practical after the  effective  date  of  this
amendatory  Act  of 1995, the Auditor General shall conduct a
compliance and management audit of the City  of  Chicago  and
any  other  entity  with  regard  to the operation of Chicago
O'Hare International  Airport,  Chicago  Midway  Airport  and
Merrill  C.  Meigs Field. The audit shall include, but not be
limited  to,  an  examination  of  revenues,  expenses,   and
transfers  of  funds; purchasing and contracting policies and
practices;  staffing  levels;  and   hiring   practices   and
procedures.  When  completed,  the  audit  required  by  this
paragraph  shall  be  distributed  in accordance with Section
3-14.
    The  Auditor  General  shall  conduct  a  financial   and
compliance  and  program  audit  of  distributions  from  the
Municipal  Economic  Development  Fund during the immediately
preceding calendar year pursuant to Section  8-403.1  of  the
Public  Utilities  Act  at  no  cost to the city, village, or
incorporated town that received the distributions.
    The Auditor General must conduct an audit of  the  Health
Facilities  Planning  Board  pursuant  to Section 19.5 of the
Illinois Health Facilities Planning Act.
    The Auditor General must conduct an annual audit  of  the
water fund of a county water commission organized pursuant to
the Water Commission Act of 1985.
(Source:  P.A.  90-813,  eff.  1-29-99;  91-782, eff. 6-9-00;
91-935, eff. 6-1-01.)

    Section 10.  The Illinois Municipal Code  is  amended  by
changing Section 11-124-1 as follows:

    (65 ILCS 5/11-124-1) (from Ch. 24, par. 11-124-1)
    Sec. 11-124-1.  Contracts for supply of water.
    (a)  The  corporate  authorities of each municipality may
contract with any person, corporation, municipal corporation,
political subdivision, public water  district  or  any  other
agency  for a supply of water. Any such contract entered into
by a municipality shall provide  that  payments  to  be  made
thereunder  shall  be  solely from the revenues to be derived
from  the  operation  of  the  waterworks   system   of   the
municipality,  and  the  contract shall be a continuing valid
and binding obligation of the municipality payable  from  the
revenues  derived from the operation of the waterworks system
of the municipality for the period of years,  not  to  exceed
40,  as  may  be provided in such contract. Any such contract
shall not be a debt within the meaning of any  constitutional
or  statutory  limitation.  No  prior  appropriation shall be
required  before  entering  into  such  a  contract  and   no
appropriation  shall  be required to authorize payments to be
made under the terms of any such contract notwithstanding any
provision in this Code to the contrary. (a)  Payments  to  be
made  under  any  such  contract  shall  be  an operation and
maintenance  expense  of  the  waterworks   system   of   the
municipality.  Any such contract made by a municipality for a
supply   of   water   may   contain  provisions  whereby  the
municipality is obligated to pay for  such  supply  of  water
without  setoff  or  counterclaim and irrespective of whether
such supply of water is ever  furnished,  made  available  or
delivered  to the municipality or whether any project for the
supply  of  water  contemplated  by  any  such  contract   is
completed,  operable  or  operating  and  notwithstanding any
suspension,   interruption,   interference,   reduction    or
curtailment  of  the  supply of water from such project.  Any
such contract may provide that if one or more  of  the  other
purchasers   of   water   defaults  in  the  payment  of  its
obligations under such contract or a  similar  contract  made
with  the supplier of the water, one or more of the remaining
purchasers party to such contract or  such  similar  contract
shall  be  required  to  pay  for  all  or  a  portion of the
obligations of the defaulting purchasers. (b) Payments to  be
made  under  any  such contract with a municipal joint action
water agency  under  the  Intergovernmental  Cooperation  Act
shall   be  an  operation  and  maintenance  expense  of  the
waterworks system of the  municipality.   Any  such  contract
made by a municipality for a supply of water with a municipal
joint  action  water  agency  under  the  provisions  of  the
Intergovernmental  Cooperation  Act  may  contain  provisions
whereby  the municipality is obligated to pay for such supply
of water without setoff or counterclaim and  irrespective  of
whether   such  supply  of  water  is  ever  furnished,  made
available or delivered to the  municipality  or  whether  any
project  for  the  supply  of  water contemplated by any such
contract   is   completed,   operable   or   operating    and
notwithstanding  any  suspension, interruption, interference,
reduction or curtailment of the supply  of  water  from  such
project.   Any  such  contract  with a municipal joint action
water agency may provide that if one or  more  of  the  other
purchasers   of   water   defaults  in  the  payment  of  its
obligations under such contract or a  similar  contract  made
with  the supplier of the water, one or more of the remaining
purchasers party to such contract or  such  similar  contract
shall  be  required  to  pay  for  all  or  a  portion of the
obligations of the defaulting purchasers.
    The changes in this Section made by these amendatory Acts
of 1984 are intended to be declarative of existing law.
    (b)  A municipality with a water supply contract  with  a
county  water  commission  organized  pursuant  to  the Water
Commission Act of 1985 shall provide water to  unincorporated
areas  of  that  home  county in accordance with the terms of
this subsection. The provision of water by  the  municipality
shall  be  in accordance with a mandate of the home county as
provided in Section 0.01 of the Water Commission Act of 1985.
A home rule unit may not provide water in a  manner  that  is
inconsistent  with  the  provisions of this amendatory Act of
the 93rd General Assembly. This subsection  is  a  limitation
under  subsection  (i)  of  Section  6  of Article VII of the
Illinois Constitution on the concurrent exercise by home rule
units of powers and functions exercised by the State.
(Source: P.A. 83-1123; 83-1524.)

    Section 15.  The Water Commission Act of 1985 is  amended
by  changing  Section  2  and  by adding Sections 0.01, 0.02,
0.03, 0.04, and 0.05 as follows:

    (70 ILCS 3720/2) (from Ch. 111 2/3, par. 252)
    Sec. 2.  The General Assembly hereby finds  and  declares
that  it  is  necessary  and  in  the public interest to help
assure a sufficient and economic supply of a source of  water
within  those  county wide areas of this State where, because
of a growth  in  population  and  proximity  to  large  urban
centers,  the  health, safety and welfare of the residents is
threatened by an ever increasing shortage  of  a  continuing,
available  and  adequate  source  and  supply  of water on an
economically reasonable basis; however, it is not the  intent
of  the  General  Assembly  to  interfere  with  the power of
municipalities to provide  for  the  retail  distribution  of
water  to  their  residents  or  the customers of their water
systems.  Therefore, in order to provide for a sufficient and
economic supply of water to such areas, it is hereby declared
to be the law of this State that:
    (a)  With respect to  any  water  commission  constituted
pursuant  to  Division  135 of the Illinois Municipal Code or
established by operation of law under Public Act 83-1123,  as
amended, which water commission includes municipalities which
in the aggregate have within their corporate limits more than
50% of the population of a county (hereinafter referred to as
a  "home  county"), and such county is contiguous to a county
which has a population in excess  of  1,000,000  inhabitants,
the  provisions of this Act shall apply.  With respect to any
such water commission (hereinafter referred to as  a  "county
water commission"):
         (i)  the   terms   of   all  commissioners  of  such
    commission holding office at the time a water  commission
    becomes a county water commission shall terminate 30 days
    after  such time and new commissioners shall be appointed
    as the governing board of the county water commission  as
    hereinafter provided in subsection (c); and
         (ii)  the  county water commission shall continue to
    be a body corporate and politic, and shall bear the  name
    of  the home county but shall be independent from and not
    a part of the county government and  shall  itself  be  a
    political subdivision and a unit of local government, and
    upon   appointment   of  the  new  commissioners  as  the
    governing board of such water commission as  provided  in
    subsection   (c),  such  water  commission  shall  remain
    responsible  for  the  full  payment  of,  and  shall  by
    operation of law be deemed to have assumed and shall  pay
    when  due  all debts and obligations of the commission as
    the same is constituted and as such debts and obligations
    existed on the  date  such  water  commission  becomes  a
    county  water  commission  and  such additional debts and
    obligations as are incurred by such commission after such
    date  and  prior  to   the   appointment   of   the   new
    commissioners  as the governing board of such commission,
    and further shall  continue  to  have  and  exercise  all
    powers  and  functions  and  duties of a water commission
    created  pursuant  to  Division  135  of   the   Illinois
    Municipal  Code,  as  now  or  hereafter amended, and the
    county water commission may rely  on  that  Division,  as
    modified  and supplemented by the provisions of this Act,
    as lawful authority under which it may act.
    (b)  Any  county  water  commission  shall  have  as  its
territory within its corporate limits,  subject  to  taxation
for  its  purposes, and subject to the powers and limitations
as conferred by this Act, (i) all of  the  territory  of  the
home   county   except  that  territory  located  within  the
corporate limits of excluded units as hereinafter defined and
(ii) also all of  the  territory  located  outside  the  home
county  and  included  within  the  corporate  limits  of  an
included  unit  as hereinafter defined.  As used in this Act,
"excluded unit" means a unit of  local  government  having  a
waterworks  system  and  having  within  its corporate limits
territory within the home county and which, at the  time  any
commission  becomes  a  county water commission, receives, or
has contracted at such time for the receipt of, more than 25%
of the water distributed by such unit's water system  from  a
source  outside of the home county.  As used in this Section,
"included unit" means any unit of local government  having  a
waterworks  system  and  having  within  its corporate limits
territory  within  the  home  county,  which  unit  of  local
government  is  not  an  excluded  unit.   No   other   water
commission  shall  be  constituted  under Division 135 of the
Illinois  Municipal  Code  in  any  home  county  after   the
effective  date  of this Act to provide water from any source
located outside the home county.  Except as authorized  by  a
county  water  commission,  no  home  county or included unit
shall enter into any new or  renew  or  extend  any  existing
contract,  agreement or other arrangement for the acquisition
or sale of water from  any  source  located  outside  a  home
county;   provided,  however,  that  any  included  unit  may
contract for a  supply  of  water  in  case  of  a  temporary
emergency  from  any  other  unit  of local government or any
entity.  In the event that any included unit elects to  serve
retail  customers  outside  its  corporate  boundaries and to
establish rates and charges for such water in excess of those
charged within  its  corporate  boundaries,  such  rates  and
charges  shall  have  a reasonable relationship to the actual
cost of providing and delivering the water; this provision is
declarative of existing law.  It is declared to be the law of
this State pursuant to paragraphs (g) and (h) of Section 6 of
Article VII of the Illinois Constitution  that  in  any  home
county,  the  provisions  of this Act and Division 135 of the
Illinois Municipal Code, as modified and supplemented by this
Act and this amendatory Act of  the  93rd  General  Assembly,
constitute a limitation upon the power of any such county and
upon  all  units  of local government (except excluded units)
within such county, including home rule  units,  limiting  to
such  county,  units  of local government and home rule units
the power to  acquire,  supply  or  distribute  water  or  to
establish  any  water  commission for such purposes involving
water from any source located outside the home  county  in  a
manner  other  than  as provided or permitted by this Act and
Division 135, as modified and supplemented by this  Act,  and
further  constitute an exercise of exclusive State power with
respect to the acquisition, supply and distribution of  water
from  any  source located outside the home county by any such
county and by units  of  local  government  (except  excluded
units),  including  home  rule  units, within such county and
with respect to the establishment for such  purposes  of  any
water  commission  therein,  which power may not be exercised
concurrently by any unit of local  government  or  home  rule
unit.   Upon the request of any included unit, a county water
commission shall provide such  included  unit  Lake  Michigan
water  in  an  amount  up  to  the then current Department of
Transportation allocation of Lake  Michigan  water  for  such
included unit.
    With   respect   to  a  water  commission  to  which  the
provisions of subsection (a) apply, all uninhabited territory
that is owned and solely occupied by such a commission and is
located not within its home county but within a non-home rule
municipality   adjacent   to   its   home    county    shall,
notwithstanding  any  other provision of law, be disconnected
from that municipality  by  operation  of  this  Act  on  the
effective  date  of  this  amendatory  Act of 1991, and shall
thereafter  no  longer  be  within  the  territory   of   the
municipality for any purpose; except that for the purposes of
any  statute  that  requires  contiguity  of  territory,  the
territory  of  the  water commission shall be disregarded and
the municipality shall not be deemed to be  noncontiguous  by
virtue   of   the   disconnection  of  the  water  commission
territory.
    (c)  The governing body of any water commission to  which
the  provisions  of  subsection (a) apply shall be a board of
commissioners, each to be appointed within 30 days after  the
water  commission becomes a county water commission to a term
commencing on such date, as follows:
         (i)  one commissioner, who shall serve as  chairman,
    who  shall  be  a  resident  of  the  home  county, to be
    appointed by the chairman of the  county  board  of  such
    county  with  the advice and consent of the county board,
    provided that following the expiration  of  the  term  or
    vacancy  of the current chairman serving on the effective
    date of this amendatory Act of the 93rd General Assembly,
    any subsequent appointment  as  chairman  shall  also  be
    subject  to  the  advice  and consent of the county water
    commission;
         (ii)  one  commissioner  from  each   county   board
    district  within  the home county, to be appointed by the
    chairman of the county board of the home county with  the
    advice and consent of the county board; and
         (iii)  one   commissioner  from  each  county  board
    district within the home county, to be appointed  by  the
    majority vote of the mayors of those included units which
    are municipalities and which have the greatest percentage
    of  their  respective  populations  residing  within such
    county board district of the home county.
    The mayors of the respective county board districts shall
meet for the purpose of making said  respective  appointments
at  a  time and place designated by that mayor in each county
board  district  of  the  included  unit  with  the   largest
population  voting  for  a commissioner upon not less than 10
days' written notice to each other mayor entitled to vote.
    The commissioners so appointed shall serve for a term  of
6  years,  or  until their successors have been appointed and
have  qualified  in  the  same   manner   as   the   original
appointments,  except  that  at  the  first  meeting  of such
commissioners, (A) the commissioners first appointed pursuant
to paragraph (ii) of this subsection shall determine publicly
by lot 1/3 of their number to serve for terms of 2 years, 1/3
of their number to serve for terms of  4  years  and  1/3  of
their number to serve for terms of 6 years, any odd number of
commissioners  so determined by dividing into thirds to serve
6 year terms,  and  (B)  the  commissioners  first  appointed
pursuant   to   paragraph  (iii)  of  this  subsection  shall
determine publicly by lot 1/3 of their number  to  serve  for
terms of 2 years, 1/3 of their number to serve for terms of 4
years  and 1/3 of their number to serve for terms of 6 years,
any odd number of commissioners  so  determined  by  dividing
into  thirds  to  serve 6 year terms.  The commissioner first
appointed pursuant to paragraph (i) of this  subsection,  who
shall  serve  as chairman, shall serve for a term of 6 years.
Any commissioner may be a member of the governing board or an
officer or employee of such  county  or  any  unit  of  local
government  within  such  county.  A commissioner is eligible
for reappointment upon the expiration of his term.  A vacancy
in the office of a  commissioner  shall  be  filled  for  the
balance   of   the   unexpired   term   by   appointment  and
qualification as to residency  in  the  same  manner  as  the
original  appointment  was  made.   Each  commissioner  shall
receive  the  same  compensation which shall not be more than
$600 per year, except that no  such  commissioner  who  is  a
member  of  the  governing board or an officer or employee of
such county or any  unit  of  local  government  within  such
county   may  receive  any  compensation  for  serving  as  a
commissioner.   Each  commissioner  may  be  removed  by  the
appointing authority for any cause for which any other county
or municipal  officer  may  be  removed.   The  county  water
commission  shall  determine  its own rules of proceeding.  A
quorum shall be a  majority  of  the  commissioners  then  in
office.  All ordinances or resolutions shall be passed by not
less  than  a  majority  of  a  quorum.   No  commissioner or
employee of the commission, no member of the county board  or
other  official  elected  within  such  county,  no  mayor or
president or other member of the corporate authorities of any
unit of local government within such county, and no  employee
of such county or any such unit of local government, shall be
interested  directly  or indirectly in any contract or job of
work or materials, or the profits thereof, or services to  be
performed  for  or  by the commission.  A violation of any of
the foregoing provisions of this  subsection  is  a  Class  C
misdemeanor.   A  conviction  is  cause  for the removal of a
person from his office or employment.
    (d)  Except as provided in subsection (g), subject to the
referendum provided for in subsection  (e),  a  county  water
commission  may  borrow  money  for corporate purposes on the
credit of the commission, and issue general obligation  bonds
therefor,  in such amounts and form and on such conditions as
it shall prescribe, but shall  not  become  indebted  in  any
manner  or  for  any  purpose in an amount including existing
indebtedness  in  the  aggregate  to  exceed  5.75%  of   the
aggregate   value   of   the   taxable  property  within  the
territorial boundaries of the  county  water  commission,  as
equalized  and  assessed  by the Department of Revenue and as
most recently available at the time  of  the  issue  of  said
bonds.   Before or at the time of incurring any indebtedness,
except as provided in subsection (g),  the  commission  shall
provide  for  the  collection  of  a direct annual tax, which
shall be unlimited as to rate or amount,  sufficient  to  pay
the interest on such debt as it falls due and also to pay and
discharge  the  principal thereof at maturity, which shall be
within 40 years after the date of issue thereof.    Such  tax
shall  be  levied  upon and collected from all of the taxable
property within the territory of the county water commission.
Dissolution of the county water  commission  for  any  reason
shall  not relieve the taxable property within such territory
of the county water commission from liability for  such  tax.
The  clerk  of  the commission shall file a certified copy of
the  resolution  or  ordinance  by  which  such   bonds   are
authorized  to  be  issued  and  such  tax is levied with the
County Clerk of each county in which any of the territory  of
the  county water commission is located and such filing shall
constitute, without the doing of  any  other  act,  full  and
complete  authority for each such County Clerk to extend such
tax for collection upon all the taxable property  within  the
territory  of the county water commission subject to such tax
in each  and  every  year  required  sufficient  to  pay  the
principal  of  and  interest  on  such  bonds,  as aforesaid,
without limit as to rate or amount, and shall be in  addition
to  and  in excess of all other taxes authorized to be levied
by  the  commission  or  any  included  unit.   The   general
obligation  bonds shall be issued pursuant to an ordinance or
resolution and may be issued in one or more series, and shall
bear such date or dates, mature at such time or times and  in
any  event  not  more than 40 years from the date thereof, be
sold at such price at private or public sale as determined by
a county water commission, bear  interest  at  such  rate  or
rates such that the net effective interest rate received upon
the  sale  of  such  bonds  does  not exceed the maximum rate
determined under Section 2 of  the  Bond  Authorization  Act,
which   rates   may   be   fixed  or  variable,  be  in  such
denominations, be in such form, either coupon or  registered,
carry such conversion, registration, and exchange privileges,
be  executed  in  such  manner,  be payable in such medium of
payment at such place or places within or without  the  State
of  Illinois,  be  subject  to  such terms of redemption, and
contain or be subject to such other terms as the ordinance or
resolution may provide, and shall not be  restricted  by  the
provisions  of  any  other  terms  of  obligations  of public
agencies or private persons.
    (e)  No issue of general obligation  bonds  by  a  county
water  commission  (except bonds to refund an existing bonded
indebtedness)  shall  be  authorized  unless  the  commission
certifies the proposition of issuing such bonds to the proper
election officials, who shall submit the proposition  to  the
voters at an election in accordance with the general election
law,  and  the proposition has been approved by a majority of
those voting on the proposition.
    The proposition shall be in the form provided in  Section
5 or shall be substantially in the following form:
-------------------------------------------------------------
  Shall general obligation
  bonds for the purpose of
  (state purpose), in the           YES
  sum of $....(insert amount),  -----------------------------
  be issued by the .........        NO
  (insert corporate name of
  the county water commission)?
-------------------------------------------------------------
    (f)  In  order  to  carry  out and perform its powers and
functions and duties under the provisions  of  this  Act  and
Division  135 of the Illinois Municipal Code, as modified and
supplemented by this Act, the governing body  of  any  county
water   commission  may  by  ordinance levy annually upon all
taxable property within its territory a tax at a rate not  to
exceed  .005%  of the value of such property, as equalized or
assessed by the Department of Revenue for the year  in  which
the  levy  is  made. In addition, any county water commission
may by ordinance levy upon all taxable  property  within  its
territory,  for  one  year  only,  an additional tax for such
purposes at a rate not to exceed .20% of the  value  of  such
property,  as  equalized  or  assessed  by  the Department of
Revenue for that year; provided, however, that such  tax  may
not be levied more than once in any county water commission.
    (g)  Any  county water commission shall have the power to
borrow money, subject to the indebtedness limitation provided
in subsection (d), from the home county or included units, in
such amounts and in such terms as  agreed  by  the  governing
bodies  of  the  commission  and  the home county or included
units.
    (h)  No county water commission constituted  pursuant  to
the  Act  shall  engage in the retail sale or distribution of
water to residents or customers of any municipality.
    (i)  Nothing in the Section requires any municipality  to
contract  with  a  county  water  commission  for a supply of
water.
    (j)  The State  of  Illinois  recognizes  that  any  such
contract  for the supply of water executed by a unit of local
government and a county water commission  may  contain  terms
and conditions intended by the parties thereto to be absolute
conditions  thereof.   The  State of Illinois also recognizes
that persons may loan funds  to  a  county  water  commission
(including,  without  limitation,  the purchase of revenue or
general obligation bonds of such commission) in reliance upon
the terms and conditions of any such contract for the  supply
of  water.   Therefore,  the  State  of  Illinois pledges and
agrees to those parties and persons which make loans of funds
to a county water commission that it will not impair or limit
the power or ability of a county water commission or  a  unit
of   local  government  fully  to  carry  out  the  financial
obligations and obligation to furnish water pursuant  to  the
terms of any contract for the supply of water entered into by
such  county water commission or unit of local government for
the term of such contracts or  loans.  All  other  terms  and
conditions of such contracts and intergovernmental agreements
shall be binding to the extent that they are not inconsistent
with this amendatory Act of the 93rd General Assembly.
(Source: P.A. 87-145.)

    (70 ILCS 3720/0.01 new)
    Sec. 0.01.  Service to areas with contaminated or tainted
water.
    (a)  Notwithstanding the terms of a water supply contract
existing  on the effective date of this amendatory Act of the
93rd General Assembly, a municipality  with  a  water  supply
contract with a county water commission must provide water to
territories  outside  that  municipality,  provided  that the
territory to be served currently receives well water that  is
tainted or contaminated. The home county board must find that
the water supply in such territory is tainted or contaminated
such  that  the health of persons served in that territory is
likely to be adversely affected now or  in  the  future.  The
county water commission shall determine which municipality in
the  home  county  is most appropriate for supplying water to
the territory with the contaminated wells within 30 days of a
county board finding that there is a tainted or  contaminated
water supply.
    The  municipality  shall provide access to water for such
territory no later  than  90  days  after  the  county  water
commission has determined by resolution that the municipality
is  the most appropriate municipality for providing access to
water for the territory.  "Access to water"  includes  access
through  the  municipal  main,  but the municipality need not
otherwise provide infrastructure to deliver  water  from  the
municipal  main.   The  municipality  may  sell water to such
territory at a rate higher than the rate charged to municipal
customers, in accordance with existing law.
    (b)  Unless  otherwise  provided  by  law,  property   in
unincorporated   territory   receiving   water   pursuant  to
subsection (a) of this Section shall not be  annexed  without
consent  of  the  owner  of  the  property.  A municipality's
furnishing water pursuant to subsection (a) of  this  Section
may not be conditioned on an agreement to annex.  "Owner" for
the  purpose  of  this subsection is any person or persons in
title, or in the case of property owned in trust, having  the
beneficial ownership of such property, who owned the property
on the date water is first so received pursuant to subsection
(a)  of  this  Section.  Upon  transfer  of ownership of such
property, the municipality may annex it by ordinance.
    (c)  This amendatory Act of the 93rd General Assembly  is
a limitation under subsection (i) of Section 6 of Article VII
of  the  Illinois  Constitution on the concurrent exercise by
home rule units of powers  and  functions  exercised  by  the
State.

    (70 ILCS 3720/0.02 new)
    Sec. 0.02.  Rate equalization.  Notwithstanding the terms
of  a water supply contract existing on the effective date of
this amendatory Act of the 93rd General Assembly, all parties
to a water supply contract with a  county  water  commission,
irrespective  of  whether  such  party is a charter member or
subsequent entrant, shall pay rates equal to the  rates  paid
by  other parties to such water supply contract and shall not
pay  any  additional  fees,  costs,  or  differentials  as  a
condition of becoming a party to such water supply  contract.
Subsequent  entrants  to  a  water  supply contract shall pay
their pro-rata portion of the original capital costs less any
rebates and the actual  costs  of  connection  to  the  water
commission system.
    (70 ILCS 3720/0.03 new)
    Sec.  0.03.  Water  subsidy  guaranty.  Except to satisfy
the obligations of persons who loaned  funds  to  the  county
water  commission,  the water rates charged to municipalities
that are in effect on the effective date of  this  amendatory
Act  of  the 93rd General Assembly may not be increased for a
period of 5 years.

    (70 ILCS 3720/0.04 new)
    Sec. 0.04.  Five-year annual transfer of  funds  to  home
county.   Beginning  July 1, 2003 and prior to July 1 of each
year through and including 2007, each county water commission
shall from any legally available sources transfer the sum  of
$15,000,000 to the county board of the home county to be used
for county purposes.  This amendatory Act of the 93rd General
Assembly  is  subordinate  to any legally required payment of
principal, interest, or  required  reserve  pursuant  to  the
county water commission's debt obligations.

    (70 ILCS 3720/0.05 new)
    Sec.  0.05.  Home rule.  A municipality, including a home
rule unit, must regulate its water systems and provide access
to water as required under the provisions of this  amendatory
Act  of  the 93rd General Assembly.  This Section is a denial
and limitation under subsection (i) of Section 6  of  Article
VII  of  the Illinois Constitution on the concurrent exercise
by home rule units of powers and functions exercised  by  the
State.

    Section  90.  The State Mandates Act is amended by adding
Section 8.27 as follows:

    (30 ILCS 805/8.27 new)
    Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
and  8 of this Act, no reimbursement by the State is required
for  the  implementation  of  any  mandate  created  by  this
amendatory Act of the 93rd General Assembly.

    Section 97.  Severability.  The provisions  of  this  Act
are severable under Section 1.31 of the Statute on Statutes.

    Section  99.  Effective  date. This Act takes effect upon
becoming law.