Sen. Michael Noland

Filed: 4/4/2014

 

 


 

 


 
09800SB3108sam004LRB098 19073 HEP 58177 a

1
AMENDMENT TO SENATE BILL 3108

2    AMENDMENT NO. ______. Amend Senate Bill 3108, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Local Governmental and Governmental
6Employees Tort Immunity Act is amended by changing Section
79-107 as follows:
 
8    (745 ILCS 10/9-107)  (from Ch. 85, par. 9-107)
9    Sec. 9-107. Policy; tax levy.
10    (a) The General Assembly finds that the purpose of this
11Section is to provide an extraordinary tax for funding expenses
12relating to (i) tort liability, (ii) liability relating to
13actions brought under the federal Comprehensive Environmental
14Response, Compensation, and Liability Act of 1980 or the
15Environmental Protection Act, but only until December 31, 2010,
16(iii) insurance, and (iv) risk management programs. Thus, the

 

 

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1tax has been excluded from various limitations otherwise
2applicable to tax levies. Notwithstanding the extraordinary
3nature of the tax authorized by this Section, however, it has
4become apparent that some units of local government are using
5the tax revenue to fund expenses more properly paid from
6general operating funds. These uses of the revenue are
7inconsistent with the limited purpose of the tax authorization.
8    Therefore, the General Assembly declares, as a matter of
9policy, that (i) the use of the tax revenue authorized by this
10Section for purposes not expressly authorized under this Act is
11improper and (ii) the provisions of this Section shall be
12strictly construed consistent with this declaration and the
13Act's express purposes.
14    (b) A local public entity may annually levy or have levied
15on its behalf taxes upon all taxable property within its
16territory at a rate that will produce a sum that will be
17sufficient to: (i) pay the cost of insurance, individual or
18joint self-insurance (including reserves thereon), including
19all operating and administrative costs and expenses directly
20associated therewith, claims services and risk management
21directly attributable to loss prevention and loss reduction,
22legal services directly attributable to the insurance,
23self-insurance, or joint self-insurance program, and
24educational, inspectional, and supervisory services directly
25relating to loss prevention and loss reduction, participation
26in a reciprocal insurer as provided in Sections 72, 76, and 81

 

 

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1of the Illinois Insurance Code, or participation in a
2reciprocal insurer, all as provided in settlements or judgments
3under Section 9-102, including all costs and reserves directly
4attributable to being a member of an insurance pool, under
5Section 9-103; (ii) pay the costs of and principal and interest
6on bonds issued under Section 9-105; (iii) pay judgments and
7settlements under Section 9-104 of this Act; (iv) discharge
8obligations under Section 34-18.1 of the School Code; (v) pay
9judgments and settlements under the federal Comprehensive
10Environmental Response, Compensation, and Liability Act of
111980 and the Environmental Protection Act, but only until
12December 31, 2010; (vi) pay the costs authorized by the
13Metro-East Sanitary District Act of 1974 as provided in
14subsection (a) of Section 5-1 of that Act (70 ILCS 2905/5-1);
15and (vii) pay the cost of risk management programs. Provided it
16complies with any other applicable statutory requirements, the
17local public entity may self-insure and establish reserves for
18expected losses for any property damage or for any liability or
19loss for which the local public entity is authorized to levy or
20have levied on its behalf taxes for the purchase of insurance
21or the payment of judgments or settlements under this Section.
22The decision of the board to establish a reserve shall be based
23on reasonable actuarial or insurance underwriting evidence and
24subject to the limits and reporting provisions in Section
259-103.
26    If a school district was a member of a

 

 

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1joint-self-health-insurance cooperative that had more
2liability in outstanding claims than revenue to pay those
3claims, the school board of that district may by resolution
4make a one-time transfer from any fund in which tort immunity
5moneys are maintained to the fund or funds from which payments
6to a joint-self-health-insurance cooperative can be or have
7been made of an amount not to exceed the amount of the
8liability claim that the school district owes to the
9joint-self-health-insurance cooperative or that the school
10district paid within the 2 years immediately preceding the
11effective date of this amendatory Act of the 92nd General
12Assembly.
13    Funds raised pursuant to this Section shall only be used
14for the purposes specified in this Act, including protection
15against and reduction of any liability or loss described
16hereinabove and under Federal or State common or statutory law,
17the Workers' Compensation Act, the Workers' Occupational
18Diseases Act, and the Unemployment Insurance Act or, in fire
19protection districts subject to the Property Tax Extension
20Limitation Law, the installation of sprinklers. Funds raised
21pursuant to this Section may be invested in any manner in which
22other funds of local public entities may be invested under
23Section 2 of the Public Funds Investment Act. Interest on such
24funds shall be used only for purposes for which the funds can
25be used or, if surplus, must be used for abatement of property
26taxes levied by the local taxing entity.

 

 

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1    A local public entity may enter into intergovernmental
2contracts with a term of not to exceed 12 years for the
3provision of joint self-insurance which contracts may include
4an obligation to pay a proportional share of a general
5obligation or revenue bond or other debt instrument issued by a
6local public entity which is a party to the intergovernmental
7contract and is authorized by the terms of the contract to
8issue the bond or other debt instrument. Funds due under such
9contracts shall not be considered debt under any constitutional
10or statutory limitation and the local public entity may levy or
11have levied on its behalf taxes to pay for its proportional
12share under the contract. Funds raised pursuant to
13intergovernmental contracts for the provision of joint
14self-insurance may only be used for the payment of any cost,
15liability or loss against which a local public entity may
16protect itself or self-insure pursuant to Section 9-103 or for
17the payment of which such entity may levy a tax pursuant to
18this Section, including tort judgments or settlements, costs
19associated with the issuance, retirement or refinancing of the
20bonds or other debt instruments, the repayment of the principal
21or interest of the bonds or other debt instruments, the costs
22of the administration of the joint self-insurance fund,
23consultant, and risk care management programs or the costs of
24insurance. Any surplus returned to the local public entity
25under the terms of the intergovernmental contract shall be used
26only for purposes set forth in subsection (a) of Section 9-103

 

 

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1and Section 9-107 or for abatement of property taxes levied by
2the local taxing entity.
3    Any tax levied under this Section shall be levied and
4collected in like manner with the general taxes of the entity
5and shall be exclusive of and in addition to the amount of tax
6that entity is now or may hereafter be authorized to levy for
7general purposes under any statute which may limit the amount
8of tax which that entity may levy for general purposes. The
9county clerk of the county in which any part of the territory
10of the local taxing entity is located, in reducing tax levies
11under the provisions of any Act concerning the levy and
12extension of taxes, shall not consider any tax provided for by
13this Section as a part of the general tax levy for the purposes
14of the entity nor include such tax within any limitation of the
15percent of the assessed valuation upon which taxes are required
16to be extended for such entity.
17    With respect to taxes levied under this Section, either
18before, on, or after the effective date of this amendatory Act
19of 1994:
20        (1) Those taxes are excepted from and shall not be
21    included within the rate limitation imposed by law on taxes
22    levied for general corporate purposes by the local public
23    entity authorized to levy a tax under this Section.
24        (2) Those taxes that a local public entity has levied
25    in reliance on this Section and that are excepted under
26    paragraph (1) from the rate limitation imposed by law on

 

 

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1    taxes levied for general corporate purposes by the local
2    public entity are not invalid because of any provision of
3    the law authorizing the local public entity's tax levy for
4    general corporate purposes that may be construed or may
5    have been construed to restrict or limit those taxes
6    levied, and those taxes are hereby validated. This
7    validation of taxes levied applies to all cases pending on
8    or after the effective date of this amendatory Act of 1994.
9        (3) Paragraphs (1) and (2) do not apply to a hospital
10    organized under Article 170 or 175 of the Township Code,
11    under the Town Hospital Act, or under the Township
12    Non-Sectarian Hospital Act and do not give any authority to
13    levy taxes on behalf of such a hospital in excess of the
14    rate limitation imposed by law on taxes levied for general
15    corporate purposes. A hospital organized under Article 170
16    or 175 of the Township Code, under the Town Hospital Act,
17    or under the Township Non-Sectarian Hospital Act is not
18    prohibited from levying taxes in support of tort liability
19    bonds if the taxes do not cause the hospital's aggregate
20    tax rate from exceeding the rate limitation imposed by law
21    on taxes levied for general corporate purposes.
22    Revenues derived from such tax shall be paid to the
23treasurer of the local taxing entity as collected and used for
24the purposes of this Section and of Section 9-102, 9-103, 9-104
25or 9-105, as the case may be. If payments on account of such
26taxes are insufficient during any year to meet such purposes,

 

 

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1the entity may issue tax anticipation warrants against the
2current tax levy in the manner provided by statute.
3(Source: P.A. 95-244, eff. 8-17-07; 95-723, eff. 6-23-08.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".