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91_HB3852
LRB9112662SMdv
1 AN ACT concerning liens.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5 changing Section 11-141-7 as follows:
6 (65 ILCS 5/11-141-7) (from Ch. 24, par. 11-141-7)
7 Sec. 11-141-7. The corporate authorities of any
8 municipality that owns and operates or that may hereafter own
9 and operate a sewerage system constructed or acquired under
10 the provisions of any law of this state may make, enact, and
11 enforce all needful rules, regulations, and ordinances for
12 the improvement, care, and protection of its sewerage system
13 and any other sewer or sewerage system, located outside the
14 corporate boundary of the municipality and not owned by it,
15 that directly or indirectly connects with the municipality's
16 sewerage system, which may be conducive to the preservation
17 of the public health, comfort, and convenience, and may
18 render the sewage carried in the sewerage system of the
19 municipality harmless in so far as it is reasonably possible
20 to do so.
21 The corporate authorities of such a municipality may, by
22 ordinance, charge the inhabitants thereof for the use and
23 service of its sewerage system whether by direct or indirect
24 connection therewith within or without the corporate
25 boundary, and to establish charges or rates for that purpose.
26 The corporate authorities of such a municipality may by
27 ordinance charge the users thereof, whether they be inside of
28 or outside of the municipality, for the use and service of
29 its sewerage system whether by direct or indirect connection
30 therewith, within or without the corporate boundary, and may
31 establish charges or rates for that purpose, provided however
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1 that where such users are residents of another municipality
2 with whom there is a contract for use and service of the
3 sewerage system, then such charges or rates shall be made in
4 accordance with the terms of the contract, either directly to
5 the users or to the contracting municipality as may be
6 provided by the provisions of the contract. In making such
7 rates and charges the municipality may provide for a rate to
8 the outside users in excess of the rate fixed for the
9 inhabitants of said municipality as may be reasonable. Where
10 bonds are issued as provided in Sections 11-141-2 and
11 11-141-3, the corporate authorities shall establish rates or
12 charges as provided in this section, and these charges or
13 rates shall be sufficient at all times to pay the cost of
14 operation and maintenance, to provide an adequate
15 depreciation fund, and to pay the principal of and interest
16 upon all revenue bonds issued under Sections 11-141-2 and
17 11-141-3.
18 A depreciation fund is a fund for such replacements as
19 may be necessary from time to time for the continued
20 effective and efficient operation of the system. The
21 depreciation fund shall not be allowed to accumulate beyond a
22 reasonable amount necessary for that purpose, and shall not
23 be used for extensions to the system.
24 Charges or rates shall be established, revised, and
25 maintained by ordinance and become payable as the corporate
26 authorities may determine by ordinance.
27 Such charges or rates are liens upon the real estate upon
28 or for which sewerage service is supplied whenever the
29 charges or rates become delinquent as provided by the
30 ordinance of the municipality fixing a delinquency date. A
31 lien is created under the preceding sentence only if the
32 municipality sends to the owner or owners of record, as
33 referenced by the taxpayer's identification number, of the
34 real estate (i) a copy of each delinquency notice sent to the
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1 person who is delinquent in paying the charges or rates or
2 other notice sufficient to inform the owner or owners of
3 record, as referenced by the taxpayer's identification
4 number, that the charges or rates have become delinquent and
5 (ii) a notice that unpaid charges or rates may create a lien
6 on the real estate under this Section. This lien shall be
7 superior to any other lien, regardless of when filed, except
8 for local, State, and federal tax liens and liens for the
9 support of dependent children. The However, the municipality
10 has no preference over the rights of any purchaser,
11 mortgagee, judgment creditor, or other lien holder arising
12 prior to the filing of the notice of such a lien in the
13 office of the recorder of the county in which such real
14 estate is located, or in the office of the registrar of
15 titles of such county if the property affected is registered
16 under "An Act concerning land titles", approved May 1, 1897,
17 as amended. This notice of lien shall consist of a sworn
18 statement setting out (1) a description of such real estate
19 sufficient for the identification thereof, (2) the amount of
20 money due for such sewerage service, and (3) the date when
21 such amount became delinquent. The municipality shall send a
22 copy of the notice of the lien to the owner or owners of
23 record of the real estate, as referenced by the taxpayer's
24 identification number. The municipality has the power to
25 foreclose this lien in the same manner and with the same
26 effect as in the foreclosure of mortgages on real estate. In
27 addition, liens may be certified annually to the proper tax
28 assessing office, which shall enter the delinquent charges
29 upon the next tax roll against the premises to which the
30 services were rendered. The charges shall be collected and
31 the lien shall be enforced in the same manner as provided for
32 the taxes assessed upon the tax roll and the enforcement of
33 the lien for those taxes. Moneys collected on account of
34 liens shall be promptly remitted to the municipality.
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1 The municipality also has the power, from time to time,
2 to sue the occupant or user of that real estate in a civil
3 action to recover money due for sewerage services, plus a
4 reasonable attorney's fee, to be fixed by the court. However,
5 whenever a judgment is entered in such a civil action, the
6 foregoing provisions in this section with respect to filing
7 sworn statements of such delinquencies in the office of the
8 recorder and creating a lien against the real estate shall
9 not be effective as to the charges sued upon and no lien
10 shall exist thereafter against the real estate for the
11 delinquency. Judgment in such a civil action operates as a
12 release and waiver of the lien upon the real estate for the
13 amount of the judgment.
14 The payment of delinquent charges for sewerage service to
15 any premises may be enforced by discontinuing either water
16 service or sewerage service to those premises, or both. A
17 charge is delinquent if it is more than 30 days overdue. Any
18 privately owned public utility, public or municipal
19 corporation, or political subdivision of the State furnishing
20 water service to a premises (i) shall discontinue that
21 service upon receiving written notice from the municipality
22 providing sewerage service that payment of the charge for
23 sewerage service to the premises has become delinquent and
24 (ii) shall not resume water service until receiving written
25 notice from the municipality that the delinquency has been
26 removed. The municipality shall reimburse the privately
27 owned public utility, public or municipal corporation, or
28 political subdivision of the State for the reasonable
29 estimate of water service revenues lost as a result of the
30 discontinuation of water service due to delinquent sewerage
31 charges, and this cost may be placed as a charge upon the
32 person or persons receiving sewerage service. "Sewerage
33 service" means treatment, collection, or transport of
34 sewerage.
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1 (Source: P.A. 87-1197.)
2 Section 10. The Sanitary District Revenue Bond Act is
3 amended by changing Sections 7, 11a, and 17 as follows:
4 (70 ILCS 3010/7) (from Ch. 42, par. 319.7)
5 Sec. 7. The board of trustees of any sanitary district
6 that owns and operates or that may hereafter own and operate
7 a sewerage system constructed or acquired under the
8 provisions of any law of this State has the power to make,
9 enact, and enforce all needful rules and regulations in the
10 construction, acquisition, improvement, extension,
11 management, and maintenance of its sewerage system and for
12 the use thereof. The board of trustees of such a sanitary
13 district also has the power to make, enact, and enforce all
14 needful rules, regulations, and ordinances for the
15 improvement, care, and protection of its sewerage system,
16 which may be conducive to the preservation of the public
17 health, comfort, and convenience, and to render the sewage of
18 the sanitary district harmless in so far as it is reasonably
19 possible to do so.
20 The board of trustees of such a sanitary district has the
21 power, by ordinance, to charge the inhabitants thereof for
22 the use and service of its sewerage system and to establish
23 charges or rates for that purpose. Where bonds are issued as
24 provided in sections 2 and 3 of this Act, the board of
25 trustees shall establish rates or charges as provided in this
26 section, and these charges or rates shall be sufficient at
27 all times to pay the cost of operation and maintenance, to
28 provide an adequate depreciation fund, and to pay the
29 principal of and interest upon all revenue bonds issued under
30 sections 2 and 3 hereof.
31 A depreciation fund is a fund for such replacements as
32 may be necessary from time to time for the continued
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1 effective and efficient operation of the system. The
2 depreciation fund shall not be allowed to accumulate beyond a
3 reasonable amount necessary for that purpose, and shall not
4 be used for extensions to the system.
5 Charges or rates shall be established, revised, and
6 maintained by ordinance and become payable as the board of
7 trustees may determine by ordinance. Such charges or rates
8 shall be liens upon the real estate upon or for which
9 sewerage service is supplied; provided, however, such liens
10 shall not attach to such real estate until such charges or
11 rates have become delinquent as provided by the ordinance of
12 the sanitary district fixing a delinquency date. A lien is
13 created under the preceding sentence only if the sanitary
14 district sends to the owner or owners of record of the real
15 estate, as referenced by the taxpayer's identification
16 number, (i) a copy of each delinquency notice sent to the
17 person who is delinquent in paying the charges or rates or
18 other notice sufficient to inform the owner or owners of
19 record, as referenced by the taxpayer's identification
20 number, that the charges or rates have become delinquent and
21 (ii) a notice that unpaid charges or rates may create a lien
22 on the real estate under this Section. This lien shall be
23 superior to any other lien, regardless of when filed, except
24 for local, State, and federal tax liens and liens for the
25 support of dependent children. Nothing in this Section shall
26 be construed to give the sanitary district a preference over
27 the rights of any purchaser, mortgagee, judgment creditor or
28 other lien holder arising prior to the filing in the office
29 of the recorder of the county in which such real estate is
30 located, or in the office of the registrar of titles of such
31 county if the property affected is registered under the
32 Torrens System, of notice of said lien. The notice of lien
33 shall consist of a sworn statement setting out (1) a
34 description of the real estate sufficient for the
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1 identification thereof, upon or for which the sewerage
2 service was supplied, (2) the amount or amounts of money due
3 for such sewerage service, and (3) the date or dates when
4 such amount or amounts became delinquent. The sanitary
5 district shall send a copy of the notice of the lien to the
6 owner or owners of record of the real estate, as referenced
7 by the taxpayer's identification number. The sanitary
8 district shall have the power to foreclose such lien in like
9 manner and with like effect as in the foreclosure of
10 mortgages on real estate. In addition, liens may be certified
11 annually to the proper tax assessing office, which shall
12 enter the delinquent charges upon the next tax roll against
13 the premises to which the services were rendered. The
14 charges shall be collected and the lien shall be enforced in
15 the same manner as provided for the taxes assessed upon the
16 tax roll and the enforcement of the lien for those taxes.
17 Moneys collected on account of liens shall be promptly
18 remitted to the sanitary district.
19 The sanitary district also has the power, from time to
20 time, to sue the owner, occupant or user of that real estate,
21 or a person receiving any direct or indirect benefit from
22 such services, in a civil action to recover money due for
23 sewerage services, plus a reasonable attorney's fee, to be
24 fixed by the court; provided, however, that the sanitary
25 district shall give notice of its intention to bring such
26 action to the owner of record by regular mail not less than 7
27 days prior to filing such civil action.
28 Judgment in a civil action brought by the sanitary
29 district to recover or collect such charges shall not operate
30 as a release or waiver of the lien upon the real estate for
31 the amount of the judgment. Only satisfaction of the
32 judgment or the filing of a release and satisfaction of lien
33 shall release said lien. The lien for charges on account of
34 services or benefits provided for in this Section and the
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1 rights created hereunder shall be in addition to and not in
2 derogation of the lien upon real estate created by and
3 imposed for general real estate taxes.
4 The payment of delinquent charges for sewerage service to
5 any premises may be enforced by discontinuing either water
6 service or sewerage service to those premises, or both. A
7 charge is delinquent if it is more than 30 days overdue. Any
8 privately owned public utility, public or municipal
9 corporation, or political subdivision of the State furnishing
10 water service to a premises (i) shall discontinue that
11 service upon receiving written notice from the sanitary
12 district providing sewerage service that payment of the
13 charge for sewerage service to the premises has become
14 delinquent and (ii) shall not resume water service until
15 receiving written notice from the sanitary district that the
16 delinquency has been removed. The sanitary district shall
17 reimburse the privately owned public utility, public or
18 municipal corporation, or political subdivision of the State
19 for the reasonable estimate of water service revenues lost as
20 a result of the discontinuation of water service due to
21 delinquent sewerage charges, and this cost may be placed as a
22 charge upon the person or persons receiving sewerage service.
23 "Sewerage service" means treatment, collection, or transport
24 of sewerage.
25 (Source: P.A. 87-1197.)
26 (70 ILCS 3010/11a) (from Ch. 42, par. 319.11a)
27 Sec. 11a. The board of trustees of any sanitary district
28 shall have full power at any time to contract with the
29 corporate authorities of the municipality or municipalities
30 situated either wholly or partly within that sanitary
31 district for the treatment and disposal of the sewage of that
32 municipality or municipalities, and for the use of the
33 drains, conduits, treatment plants, pumping plants, and works
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1 maintained by that sanitary district for the carrying off,
2 disposal, and treatment of sewage and industrial wastes, in
3 lieu of charging the inhabitants of that municipality or
4 municipalities. The corporate authorities so contracting
5 shall adopt an ordinance imposing rules and regulations with
6 respect to the use of sewers within that municipality and
7 provide for a charge to the inhabitants thereof for the use
8 thereof and for the payment of the charge to be paid to the
9 sanitary district under that contract. Such contracts shall
10 be irrevocable as long as any revenue bonds of the sanitary
11 district are outstanding, but the charge to be paid to the
12 sanitary district shall be payable only from the revenue
13 derived by the municipalities from the charges made to the
14 inhabitants thereof.
15 The charges and rates fixed by the corporate authorities
16 shall be sufficient at all times to pay the charge to be paid
17 to the sanitary districts. Such charges or rates shall be
18 liens upon the real estate upon or for which sewerage service
19 is supplied; provided, however, such liens shall not attach
20 to such real estate until such charges or rates have become
21 delinquent as provided by the ordinance of the municipality
22 fixing a delinquency date. A lien is created under the
23 preceding sentence only if the sanitary district sends to the
24 owner or owners of record of the real estate, as referenced
25 by the taxpayer's identification number, (i) a copy of each
26 delinquency notice sent to the person who is delinquent in
27 paying the charges or rates or other notice sufficient to
28 inform the owner or owners of record, as referenced by the
29 taxpayer's identification number, that the charges or rates
30 have become delinquent and (ii) a notice that unpaid charges
31 or rates may create a lien on the real estate under this
32 Section. This lien shall be superior to any other lien,
33 regardless of when filed, except for local, State, and
34 federal tax liens and liens for the support of dependent
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1 children. Nothing in this Section shall be construed to give
2 the municipality a preference over the rights of any
3 purchaser, mortgagee, judgment creditor or other lien holder
4 arising prior to the filing in the office of the recorder of
5 the county in which such real estate is located, or in the
6 office of the registrar of titles of such county if the
7 property affected is registered under "An Act concerning land
8 titles", approved May 1, 1897, as amended, of notice of the
9 lien. The notice of lien shall consist of a sworn statement
10 setting out (1) a description of the real estate, sufficient
11 for the identification thereof, upon or for which the
12 sewerage service was supplied, (2) the amount or amounts of
13 money due for such sewerage service, and (3) the date or
14 dates when such amount or amounts became delinquent. The
15 sanitary district shall send a copy of the notice of the lien
16 to the owner or owners of record of the real estate, as
17 referenced by the taxpayer's identification number. The
18 municipality shall have the power to foreclose such lien in
19 like manner and with like effect as in the foreclosure of
20 mortgages on real estate. In addition, liens may be certified
21 annually to the proper tax assessing office, which shall
22 enter the delinquent charges upon the next tax roll against
23 the premises to which the services were rendered. The
24 charges shall be collected and the lien shall be enforced in
25 the same manner as provided for the taxes assessed upon the
26 tax roll and the enforcement of the lien for those taxes.
27 Moneys collected on account of liens shall be promptly
28 remitted to the sanitary district.
29 The municipality also has the power, from time to time,
30 to sue the occupant or user of the real estate in a civil
31 action to recover the money due for sewerage services, plus a
32 reasonable attorney's fee, to be fixed by the court.
33 However, when a judgment is obtained in such a civil action,
34 the foregoing provisions in this section with respect to
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1 filing sworn statements of such delinquencies in the office
2 of the recorder and creating a lien against the real estate
3 shall not be effective as to charges sued upon and no lien
4 shall exist thereafter against the real estate for that
5 delinquency. Judgment in such a civil action operates as a
6 release and waiver of the lien upon the real estate for the
7 amount of the judgment.
8 The payment of delinquent charges for sewerage service to
9 any premises may be enforced by discontinuing either water
10 service or sewerage service to those premises, or both. A
11 charge is delinquent if it is more than 30 days overdue. Any
12 privately owned public utility, public or municipal
13 corporation, or political subdivision of the State furnishing
14 water service to a premises (i) shall discontinue that
15 service upon receiving written notice from the sanitary
16 district providing sewerage service that payment of the
17 charge for sewerage service to the premises has become
18 delinquent and (ii) shall not resume water service until
19 receiving written notice from the sanitary district that the
20 delinquency has been removed. The sanitary district shall
21 reimburse the privately owned public utility, public or
22 municipal corporation, or political subdivision of the State
23 for the reasonable estimate of water service revenues lost as
24 a result of the discontinuation of water service due to
25 delinquent sewerage charges, and this cost may be placed as a
26 charge upon the person or persons receiving sewerage service.
27 "Sewerage service" means treatment, collection, or transport
28 of sewerage.
29 Such contract may contain appropriate provisions to
30 authorize the sanitary district to proceed, in the name of
31 the municipality, in the collection of such charges and rates
32 as are provided in this section, in the event that the
33 municipality fails to pay when due the charge to be paid to
34 the sanitary district. Any sanitary district, by a civil
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1 action, may compel the officials of the municipality to
2 perform all duties imposed upon them by this section,
3 including the making and collection of sufficient charges and
4 rates for that purpose and the application of the revenue
5 therefrom.
6 (Source: P.A. 87-1197.)
7 (70 ILCS 3010/17) (from Ch. 42, par. 319.17)
8 Sec. 17. If after the public hearing the board of
9 trustees of the sanitary district adopts a resolution to
10 proceed with the construction or acquisition of the project,
11 the board of trustees has the power to make and enforce all
12 needful rules and regulations in connection with the
13 construction, acquisition, improvement, or extension, and
14 with the management and maintenance of the project to be
15 constructed or acquired. The board of trustees also has the
16 power to establish the rate or charge to each user of the
17 sewerage system or improvement or extension at a rate which
18 will be sufficient to pay the principal and interest of any
19 bonds, issued to pay the cost thereof, maintenance, and
20 operation of the system, improvement, or extension and to
21 provide an adequate depreciation fund therefor. Charges or
22 rates shall be established, revised, and maintained by
23 ordinance and become payable as the board of trustees may
24 determine by ordinance. Such charges or rates shall be liens
25 upon the real estate upon or for which sewerage service is
26 supplied; provided, however, such liens shall not attach to
27 such real estate until such charges or rates have become
28 delinquent as provided by the ordinance of the sanitary
29 district fixing a delinquency date. A lien is created under
30 the preceding sentence only if the sanitary district sends to
31 the owner or owners of record of the real estate, as
32 referenced by the taxpayer's identification number, (i) a
33 copy of each delinquency notice sent to the person who is
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1 delinquent in paying the charges or rates or other notice
2 sufficient to inform the owner or owners of record, as
3 referenced by the taxpayer's identification number, that the
4 charges or rates have become delinquent and (ii) a notice
5 that unpaid charges or rates may create a lien on the real
6 estate under this Section. This lien shall be superior to any
7 other lien, regardless of when filed, except for local,
8 State, and federal tax liens and liens for the support of
9 dependent children. Nothing in this Section shall be
10 construed to give the sanitary district a preference over the
11 rights of any purchaser, mortgagee, judgment creditor or
12 other lien holder arising prior to the filing in the office
13 of the recorder of the county in which such real estate is
14 located, or in the office of the registrar of titles of such
15 county if the property affected is registered under the
16 Torrens System, of notice of said lien. The notice of lien
17 shall consist of a sworn statement setting out (1) a
18 description of the real estate sufficient for the
19 identification thereof, upon or for which the sewerage
20 service was supplied, (2) the amount or amounts of money due
21 for such sewerage service, and (3) the date or dates when
22 such amount or amounts became delinquent, (4) the owner of
23 record of the premises. The sanitary district shall send a
24 copy of the notice of the lien to the owner or owners of
25 record of the real estate, as referenced by the taxpayer's
26 identification number. The sanitary district shall have the
27 power to foreclose such lien in like manner and with like
28 effect as in the foreclosure of mortgages on real estate. In
29 addition, liens may be certified annually to the proper tax
30 assessing office, which shall enter the delinquent charges
31 upon the next tax roll against the premises to which the
32 services were rendered. The charges shall be collected and
33 the lien shall be enforced in the same manner as provided for
34 the taxes assessed upon the tax roll and the enforcement of
-14- LRB9112662SMdv
1 the lien for those taxes. Moneys collected on account of
2 liens shall be promptly remitted to the sanitary district.
3 The sanitary district also has the power, from time to
4 time, to sue the occupant or user of the real estate in a
5 civil action to recover the money due for sewerage services,
6 plus a reasonable attorney's fee, to be fixed by the court.
7 However, whenever a judgment is obtained in such a civil
8 action, the foregoing provision in this section with respect
9 to filing sworn statements of such delinquencies in the
10 office of the recorder of deeds and creating a lien against
11 the real estate shall not be effective as to the charges sued
12 upon and no lien shall exist thereafter against the real
13 estate for that delinquency. Judgment in such a civil action
14 operates as a release and waiver of the lien upon the real
15 estate for the amount of the judgment. The charge provided
16 in this section to be made against each user of an
17 improvement or extension shall be in addition to the charge,
18 if any, made of all users of the system under Section 7
19 hereof, and shall be kept separate and distinct therefrom.
20 The payment of delinquent charges for sewerage service to
21 any premises may be enforced by discontinuing either water
22 service or sewerage service to those premises, or both. A
23 charge is delinquent if it is more than 30 days overdue. Any
24 privately owned public utility, public or municipal
25 corporation, or political subdivision of the State furnishing
26 water service to a premises (i) shall discontinue that
27 service upon receiving written notice from the sanitary
28 district providing sewerage service that payment of the
29 charge for sewerage service to the premises has become
30 delinquent and (ii) shall not resume water service until
31 receiving written notice from the sanitary district that the
32 delinquency has been removed. The sanitary district shall
33 reimburse the privately owned public utility, public or
34 municipal corporation, or political subdivision of the State
-15- LRB9112662SMdv
1 for the reasonable estimate of water service revenues lost as
2 a result of the discontinuation of water service due to
3 delinquent sewerage charges, and this cost may be placed as a
4 charge upon the person or persons receiving sewerage service.
5 "Sewerage service" means treatment, collection, or transport
6 of sewerage.
7 (Source: P.A. 87-1197.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.