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Public Act 102-0740


 

Public Act 0740 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0740
 
SB1571 EnrolledLRB102 12624 AWJ 17963 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 Municipal Code is amended by
changing Sections 11-10-1 and 11-10-2 and by adding Sections
11-10-0.01 and 11-10-2.5 as follows:
 
    (65 ILCS 5/11-10-0.01 new)
    Sec. 11-10-0.01. Short title. This Division may be cited
as the Foreign Fire Insurance License Fee Act.
 
    (65 ILCS 5/11-10-1)  (from Ch. 24, par. 11-10-1)
    Sec. 11-10-1. (a) In each municipality or fire protection
district, whether incorporated under a general or special law,
which has a fire department established and maintained by
municipal or fire protection district ordinances, every
corporation, company, and association which is not
incorporated under the laws of this state and which is engaged
in effecting fire insurance in the municipality or fire
protection district, shall pay to the foreign fire insurance
board or to the secretary of the fire protection district for
the maintenance, use, and benefit of the fire department
thereof, a sum of not exceeding 2% of the gross receipts
received from fire insurance upon property situated within the
municipality or district.
    Each municipality and fire protection district may
prescribe by ordinance the rate of the tax or license fee to be
paid, but this rate shall not exceed the rate specified in this
section. Each designated corporation, company, and association
shall pay the sum at the rate so prescribed by this subsection,
upon the amount of all premiums which have been received
during the year ending on every first day of July for all fire
insurance effected or agreed to be effected on property
situated within the municipality or fire protection district,
by that corporation, company, or association respectively.
    Every person who acts in any specified municipality or
fire protection district as agent, or otherwise, on behalf of
a designated corporation, company, or association, shall
render to the treasurer of the foreign fire insurance board or
secretary of the fire protection district, on or before the
fifteenth day of July of each year, a full and true account,
verified by his oath, of all of the premiums which, during the
year ending on the first day of July preceding the report, were
received by him, or by any other person for him on behalf of
that corporation, company, or association. He shall specify in
this report the amounts received for fire insurance, and he
shall pay to the treasurer of the foreign fire insurance
board, or to the secretary of the fire protection district, or
to the treasurer's or secretary's designee, at the time of
rendering this report, the sum amount as determined by the
rate fixed by this subsection by the ordinance of the
municipality or fire protection district for which his
corporation, company, or association is accountable under this
section and the ordinance.
    If this account is not rendered on or before the fifteenth
day of July of each year, or if the sum due remains unpaid
after that day, it shall be unlawful for any corporation,
company, or association, so in default, to transact any
business in the municipality or fire protection district until
the sum due has been fully paid. But this provision shall not
relieve any corporation, company, or association from the
payment of any loss upon any risk that may be taken in
violation of this requirement.
    The amount of this tax or license fee may be recovered from
the corporation, company, or association, or any third party
which owes it, or from its agent, by an action brought by a
foreign fire insurance board in the name and for the use of the
municipality or fire protection district as for money had and
received.
    The foreign fire insurance board municipal comptroller, if
any, and if not, then the municipal clerk or the secretary of
the fire protection district, or the board's or secretary's
authorized designee, may examine the books, records, and other
papers and documents of a designated agent, corporation,
company, or association for the purpose of verifying the
correctness of the report of the amounts received for fire
insurance.
    This subsection is section shall not be applicable to
receipts from contracts of marine fire insurance, even though
they include insurance against fire, where the premium for the
fire insurance is not separately specified.
    (b) A foreign fire insurance board aggrieved by a
violation of this Section may file suit in the Circuit Court in
the county where the alleged violation occurred.
    (c) The regulation of a foreign fire insurance board and
its license fees are exclusive powers and functions of the
State. A home rule municipality may not regulate a foreign
fire insurance board and its license fees. This Section is a
denial and limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the Illinois
Constitution.
(Source: P.A. 95-807, eff. 8-12-08.)
 
    (65 ILCS 5/11-10-2)  (from Ch. 24, par. 11-10-2)
    Sec. 11-10-2. (a) A department foreign fire insurance
board shall be created by and among the sworn members of within
the fire department of each municipality with fewer than
500,000 inhabitants that has an organized fire department. The
board shall consist of 7 trustees; the fire chief, who shall
hold office by virtue of rank, and 6 members, who shall be
elected at large by the sworn members of the department. If
there is an insufficient number of candidates to fill all
these positions, the number of board members may be reduced,
but not to fewer than 3 trustees. All sworn members of the
department shall be eligible to be elected as officers of the
department foreign fire insurance board. The members of this
board shall annually elect officers. These officers shall be a
chairman, and a treasurer, and any other officers deemed
necessary by the board. The members trustees of the department
foreign fire insurance board shall make all needful rules and
regulations with respect to the department foreign fire
insurance board and the management of the funds money to be
paid appropriated to the board. The foreign fire insurance
board may establish, manage, and maintain an account for the
holding and expenditure of all funds paid to the board. The
foreign fire insurance board may contract for the purchase of
goods and services using funds paid to the board. Contracting
for services includes, but is not limited to, the procurement
and payment of all accounting, legal, collection, or other
professional services deemed by the board to be necessary to
the execution of its duties under this Division using funds
paid to the board. The foreign fire insurance board may sue all
parties necessary to enforce its rights under this Section.
The officers of the department foreign fire insurance board
shall develop and maintain a listing of those items that the
board feels are appropriate expenditures under this Act. The
treasurer of the department foreign fire insurance board shall
give a sufficient bond to the municipality in which the fire
department is organized. This bond shall be approved by the
mayor or president, as the case may be, conditioned upon the
faithful performance by the treasurer of his or her duties
under the ordinance and the rules and regulations provided for
in this section. The treasurer of the department foreign fire
insurance board shall receive the funds paid as provided in
Section 1 appropriated money and shall pay out the funds money
upon the order of the department foreign fire insurance board
for the maintenance, use, and benefit of the department or as
otherwise permitted by this Division. These As part of the
annual municipal audit, these funds shall be audited to verify
that the funds have been expended by that board only for the
maintenance, use, and benefit of the department using funds
paid to the board. Contracting for services includes, but is
not limited to, the procurement and payment of all accounting,
legal, collection, or other professional services deemed by
the board to be necessary to the execution of its duties under
this Division using funds paid to the board.
    Disputes between a fire chief and the remaining members of
a foreign fire insurance board concerning whether any
expenditure of funds by the board is for the maintenance, use,
or benefit of the department or for any other purpose
authorized by this Division shall be resolved through binding
arbitration, pursuant to a written arbitration agreement
established by the foreign fire insurance board, that is
recognized under the Uniform Arbitration Act. Arbitrations
held pursuant to a written arbitration agreement are the
exclusive remedy available for resolving such disputes.
    (b) As used in this subsection, "active member" means a
member of the Chicago Fire Department who is not receiving a
disability pension, retired, or a deferred pensioner of the
Firemen's Annuity and Benefit Fund of Chicago.
    A department foreign fire insurance board is created
within the Chicago Fire Department. The board shall consist of
7 trustees who shall be initially elected on or before January
1, 2019: the fire commissioner, who shall hold office by
virtue of rank, and 6 elected trustees, who shall be elected at
large by the sworn members of the department. If there is an
insufficient number of candidates seeking election to each
vacant trustee position, the number of board members is
reduced to 5 trustees, including the fire commissioner of the
department, until the next election cycle when there are
enough active members seeking election to fill all 7 member
seats. All active members are eligible to be elected as
trustees of the department foreign fire insurance board. Of
the trustees first elected, 3 trustees shall be elected to a
2-year term and 3 trustees shall be elected to a 3-year term.
After the initial election, a trustee shall be elected for a
term of 3 years. If a member of the board resigns, is removed,
or is unable to continue serving on the board, the vacancy
shall be filled by special election of the active members or,
in the case of a vacancy that will exist for fewer than 180
days until the term expires, by appointment by majority vote
of the members of the board.
    The members of the board shall annually elect officers.
These officers shall be a chairman, treasurer, and secretary.
The trustees of the board shall make rules and regulations
with respect to the board and the management of the money
appropriated to the board. The officers of the board shall
develop and maintain a listing of those items that the board
believes are appropriate expenditures under this subsection.
The treasurer of the board shall give a sufficient bond to the
City of Chicago. The cost of the bond shall be paid out of the
moneys in the board's fund. The bond shall be conditioned upon
the faithful performance by the treasurer of his or her duties
under the rules and regulations provided for in this
subsection. The treasurer of the board shall receive the
appropriated proceeds and shall disburse the proceeds upon the
order of the board for the maintenance, use, and benefit of the
department consistent with this subsection. As part of the
annual municipal audit, these funds shall be audited to verify
that the funds have been expended lawfully by the board
consistent with this subsection.
    Within 30 days after receipt of any foreign fire insurance
proceeds by the City of Chicago, the City of Chicago shall
transfer the proceeds to the board by depositing the proceeds
into an account determined by the board, except that if the
effective date of this amendatory Act of the 100th General
Assembly is after July 31, 2018, then the City of Chicago
shall, for budget year 2019 only, transfer only 50% of the
proceeds to the board. Notwithstanding any other provision of
law: 50% of the foreign fire insurance proceeds received by
the board shall be used for the maintenance, use, benefit, or
enhancement of fire stations or training facilities used by
the active members of the fire department; 25% of the foreign
fire insurance proceeds received by the board shall be used
for the maintenance, use, benefit, or enhancement of emergency
response vehicles, tools, and equipment used by the active
members of the department; and 25% of the foreign fire
insurance proceeds received by the board shall be used for the
maintenance and enhancement of the department and for the use
and benefit of the active members of the department in a manner
otherwise consistent with this subsection. Foreign fire
insurance proceeds may not be used to purchase, maintain, or
enhance personal property of a member of the department,
except for personal property used in the performance of his or
her duties or training activities.
    (c) The provisions of this Section shall be the exclusive
power of the State, pursuant to subsection (h) of Section 6 of
Article VII of the Constitution.
(Source: P.A. 100-656, eff. 7-31-18.)
 
    (65 ILCS 5/11-10-2.5 new)
    Sec. 11-10-2.5. Collection of licensing fees. A foreign
fire insurance board created under this Division has the sole
and exclusive authority to collect all licensing fees required
to be paid by foreign fire insurance companies, corporations,
associations, or third parties under this Division. This
authority includes the right to designate a representative or
agent authorized to collect such fees on their behalf.
    A board created pursuant to subsection (a) of Section 2
that does not collect licensing fees on its own accord, or that
does not designate an authorized representative or agent to
collect the fees on their behalf, shall have all fees
collected on its behalf by a statewide organization of
municipalities recognized under Section 1-8-1.
    Licensing fees collected from foreign fire insurance
companies, corporations, associations, or third parties under
a representative or agent authorized to do so by a foreign fire
insurance board or by a statewide organization of
municipalities recognized under Section 1-8-1 shall be paid
promptly and directly to the treasurer of the foreign fire
insurance board, less reasonable costs and expenses associated
with the collection of the fees, as agreed to by the board.
 
    Section 99. Effective date. This Act takes effect January
1, 2023.

Effective Date: 1/1/2023