[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ House Amendment 001 ] | [ House Amendment 002 ] |
| [ Senate Amendment 001 ] |
91_HB3852eng HB3852 Engrossed 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 HB3852 Engrossed -2- LRB9112662SMdv 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 HB3852 Engrossed -3- LRB9112662SMdv 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. However, the 7 municipality has no preference over the rights of any 8 purchaser, mortgagee, judgment creditor, or other lien holder 9 arising prior to the filing of the notice of such a lien in 10 the office of the recorder of the county in which such real 11 estate is located, or in the office of the registrar of 12 titles of such county if the property affected is registered 13 under "An Act concerning land titles", approved May 1, 1897, 14 as amended. This notice shall consist of a sworn statement 15 setting out (1) a description of such real estate sufficient 16 for the identification thereof, (2) the amount of money due 17 for such sewerage service, and (3) the date when such amount 18 became delinquent. The municipality shall send a copy of the 19 notice of the lien to the owner or owners of record of the 20 real estate, as referenced by the taxpayer's identification 21 number. The municipality has the power to foreclose this lien 22 in the same manner and with the same effect as in the 23 foreclosure of mortgages on real estate. In addition, liens 24 may be certified annually to the proper tax assessing office, 25 which shall enter the delinquent charges upon the next tax 26 roll against the premises to which the services were 27 rendered. Moneys collected on account of liens shall be 28 promptly remitted to the municipality. 29 The municipality also has the power, from time to time, 30 to sue the occupant or user of that real estate in a civil 31 action to recover money due for sewerage services, plus a 32 reasonable attorney's fee, to be fixed by the court. However, 33 whenever a judgment is entered in such a civil action, the 34 foregoing provisions in this section with respect to filing HB3852 Engrossed -4- LRB9112662SMdv 1 sworn statements of such delinquencies in the office of the 2 recorder and creating a lien against the real estate shall 3 not be effective as to the charges sued upon and no lien 4 shall exist thereafter against the real estate for the 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 municipality 16 providing sewerage service that payment of the charge for 17 sewerage service to the premises has become delinquent and 18 (ii) shall not resume water service until receiving written 19 notice from the municipality that the delinquency has been 20 removed. The municipality shall reimburse the privately 21 owned public utility, public or municipal corporation, or 22 political subdivision of the State for the reasonable 23 estimate of water service revenues lost as a result of the 24 discontinuation of water service due to delinquent sewerage 25 charges, and this cost may be placed as a charge upon the 26 person or persons receiving sewerage service. "Sewerage 27 service" means treatment, collection, or transport of 28 sewerage. 29 (Source: P.A. 87-1197.) 30 Section 10. The Sanitary District Revenue Bond Act is 31 amended by changing Sections 7, 11a, and 17 as follows: 32 (70 ILCS 3010/7) (from Ch. 42, par. 319.7) HB3852 Engrossed -5- LRB9112662SMdv 1 Sec. 7. The board of trustees of any sanitary district 2 that owns and operates or that may hereafter own and operate 3 a sewerage system constructed or acquired under the 4 provisions of any law of this State has the power to make, 5 enact, and enforce all needful rules and regulations in the 6 construction, acquisition, improvement, extension, 7 management, and maintenance of its sewerage system and for 8 the use thereof. The board of trustees of such a sanitary 9 district also has the power to make, enact, and enforce all 10 needful rules, regulations, and ordinances for the 11 improvement, care, and protection of its sewerage system, 12 which may be conducive to the preservation of the public 13 health, comfort, and convenience, and to render the sewage of 14 the sanitary district harmless in so far as it is reasonably 15 possible to do so. 16 The board of trustees of such a sanitary district has the 17 power, by ordinance, to charge the inhabitants thereof for 18 the use and service of its sewerage system and to establish 19 charges or rates for that purpose. Where bonds are issued as 20 provided in sections 2 and 3 of this Act, the board of 21 trustees shall establish rates or charges as provided in this 22 section, and these charges or rates shall be sufficient at 23 all times to pay the cost of operation and maintenance, to 24 provide an adequate depreciation fund, and to pay the 25 principal of and interest upon all revenue bonds issued under 26 Sections 2 and 3 hereof. 27 A depreciation fund is a fund for such replacements as 28 may be necessary from time to time for the continued 29 effective and efficient operation of the system. The 30 depreciation fund shall not be allowed to accumulate beyond a 31 reasonable amount necessary for that purpose, and shall not 32 be used for extensions to the system. 33 Charges or rates shall be established, revised, and 34 maintained by ordinance and become payable as the board of HB3852 Engrossed -6- LRB9112662SMdv 1 trustees may determine by ordinance. Such charges or rates 2 shall be liens upon the real estate upon or for which 3 sewerage service is supplied; provided, however, such liens 4 shall not attach to such real estate until such charges or 5 rates have become delinquent as provided by the ordinance of 6 the sanitary district fixing a delinquency date. A lien is 7 created under the preceding sentence only if the sanitary 8 district sends to the owner or owners of record of the real 9 estate, as referenced by the taxpayer's identification 10 number, (i) a copy of each delinquency notice sent to the 11 person who is delinquent in paying the charges or rates or 12 other notice sufficient to inform the owner or owners of 13 record, as referenced by the taxpayer's identification 14 number, that the charges or rates have become delinquent and 15 (ii) a notice that unpaid charges or rates may create a lien 16 on the real estate under this Section. Nothing in this 17 Section shall be construed to give the sanitary district a 18 preference over the rights of any purchaser, mortgagee, 19 judgment creditor or other lien holder arising prior to the 20 filing in the office of the recorder of the county in which 21 such real estate is located, or in the office of the 22 registrar of titles of such county if the property affected 23 is registered under the Torrens System, of notice of said 24 lien. The notice shall consist of a sworn statement setting 25 out (1) a description of the real estate sufficient for the 26 identification thereof, upon or for which the sewerage 27 service was supplied, (2) the amount or amounts of money due 28 for such sewerage service, and (3) the date or dates when 29 such amount or amounts became delinquent. The sanitary 30 district shall send a copy of the notice of the lien to the 31 owner or owners of record of the real estate, as referenced 32 by the taxpayer's identification number. The sanitary 33 district shall have the power to foreclose such lien in like 34 manner and with like effect as in the foreclosure of HB3852 Engrossed -7- LRB9112662SMdv 1 mortgages on real estate. In addition, liens may be certified 2 annually to the proper tax assessing office, which shall 3 enter the delinquent charges upon the next tax roll against 4 the premises to which the services were rendered. Moneys 5 collected on account of liens shall be promptly remitted to 6 the sanitary district. 7 The sanitary district also has the power, from time to 8 time, to sue the owner, occupant or user of that real estate, 9 or a person receiving any direct or indirect benefit from 10 such services, in a civil action to recover money due for 11 sewerage services, plus a reasonable attorney's fee, to be 12 fixed by the court; provided, however, that the sanitary 13 district shall give notice of its intention to bring such 14 action to the owner of record by regular mail not less than 7 15 days prior to filing such civil action. 16 Judgment in a civil action brought by the sanitary 17 district to recover or collect such charges shall not operate 18 as a release or waiver of the lien upon the real estate for 19 the amount of the judgment. Only satisfaction of the 20 judgment or the filing of a release and satisfaction of lien 21 shall release said lien. The lien for charges on account of 22 services or benefits provided for in this Section and the 23 rights created hereunder shall be in addition to and not in 24 derogation of the lien upon real estate created by and 25 imposed for general real estate taxes. 26 The payment of delinquent charges for sewerage service to 27 any premises may be enforced by discontinuing either water 28 service or sewerage service to those premises, or both. A 29 charge is delinquent if it is more than 30 days overdue. Any 30 privately owned public utility, public or municipal 31 corporation, or political subdivision of the State furnishing 32 water service to a premises (i) shall discontinue that 33 service upon receiving written notice from the sanitary 34 district providing sewerage service that payment of the HB3852 Engrossed -8- LRB9112662SMdv 1 charge for sewerage service to the premises has become 2 delinquent and (ii) shall not resume water service until 3 receiving written notice from the sanitary district that the 4 delinquency has been removed. The sanitary district shall 5 reimburse the privately owned public utility, public or 6 municipal corporation, or political subdivision of the State 7 for the reasonable estimate of water service revenues lost as 8 a result of the discontinuation of water service due to 9 delinquent sewerage charges, and this cost may be placed as a 10 charge upon the person or persons receiving sewerage service. 11 "Sewerage service" means treatment, collection, or transport 12 of sewerage. 13 (Source: P.A. 87-1197.) 14 (70 ILCS 3010/11a) (from Ch. 42, par. 319.11a) 15 Sec. 11a. The board of trustees of any sanitary district 16 shall have full power at any time to contract with the 17 corporate authorities of the municipality or municipalities 18 situated either wholly or partly within that sanitary 19 district for the treatment and disposal of the sewage of that 20 municipality or municipalities, and for the use of the 21 drains, conduits, treatment plants, pumping plants, and works 22 maintained by that sanitary district for the carrying off, 23 disposal, and treatment of sewage and industrial wastes, in 24 lieu of charging the inhabitants of that municipality or 25 municipalities. The corporate authorities so contracting 26 shall adopt an ordinance imposing rules and regulations with 27 respect to the use of sewers within that municipality and 28 provide for a charge to the inhabitants thereof for the use 29 thereof and for the payment of the charge to be paid to the 30 sanitary district under that contract. Such contracts shall 31 be irrevocable as long as any revenue bonds of the sanitary 32 district are outstanding, but the charge to be paid to the 33 sanitary district shall be payable only from the revenue HB3852 Engrossed -9- LRB9112662SMdv 1 derived by the municipalities from the charges made to the 2 inhabitants thereof. 3 The charges and rates fixed by the corporate authorities 4 shall be sufficient at all times to pay the charge to be paid 5 to the sanitary districts. Such charges or rates shall be 6 liens upon the real estate upon or for which sewerage service 7 is supplied; provided, however, such liens shall not attach 8 to such real estate until such charges or rates have become 9 delinquent as provided by the ordinance of the municipality 10 fixing a delinquency date. A lien is created under the 11 preceding sentence only if the sanitary district sends to the 12 owner or owners of record of the real estate, as referenced 13 by the taxpayer's identification number, (i) a copy of each 14 delinquency notice sent to the person who is delinquent in 15 paying the charges or rates or other notice sufficient to 16 inform the owner or owners of record, as referenced by the 17 taxpayer's identification number, that the charges or rates 18 have become delinquent and (ii) a notice that unpaid charges 19 or rates may create a lien on the real estate under this 20 Section. Nothing in this Section shall be construed to give 21 the municipality a preference over the rights of any 22 purchaser, mortgagee, judgment creditor or other lien holder 23 arising prior to the filing in the office of the recorder of 24 the county in which such real estate is located, or in the 25 office of the registrar of titles of such county if the 26 property affected is registered under "An Act concerning land 27 titles", approved May 1, 1897, as amended, of notice of the 28 lien. The notice shall consist of a sworn statement setting 29 out (1) a description of the real estate, sufficient for the 30 identification thereof, upon or for which the sewerage 31 service was supplied, (2) the amount or amounts of money due 32 for such sewerage service, and (3) the date or dates when 33 such amount or amounts became delinquent. The sanitary 34 district shall send a copy of the notice of the lien to the HB3852 Engrossed -10- LRB9112662SMdv 1 owner or owners of record of the real estate, as referenced 2 by the taxpayer's identification number. The municipality 3 shall have the power to foreclose such lien in like manner 4 and with like effect as in the foreclosure of mortgages on 5 real estate. In addition, liens may be certified annually to 6 the proper tax assessing office, which shall enter the 7 delinquent charges upon the next tax roll against the 8 premises to which the services were rendered. Moneys 9 collected on account of liens shall be promptly remitted to 10 the sanitary district. 11 The municipality also has the power, from time to time, 12 to sue the occupant or user of the real estate in a civil 13 action to recover the money due for sewerage services, plus a 14 reasonable attorney's fee, to be fixed by the court. 15 However, when a judgment is obtained in such a civil action, 16 the foregoing provisions in this section with respect to 17 filing sworn statements of such delinquencies in the office 18 of the recorder and creating a lien against the real estate 19 shall not be effective as to charges sued upon and no lien 20 shall exist thereafter against the real estate for that 21 delinquency. Judgment in such a civil action operates as a 22 release and waiver of the lien upon the real estate for the 23 amount of the judgment. 24 The payment of delinquent charges for sewerage service to 25 any premises may be enforced by discontinuing either water 26 service or sewerage service to those premises, or both. A 27 charge is delinquent if it is more than 30 days overdue. Any 28 privately owned public utility, public or municipal 29 corporation, or political subdivision of the State furnishing 30 water service to a premises (i) shall discontinue that 31 service upon receiving written notice from the sanitary 32 district providing sewerage service that payment of the 33 charge for sewerage service to the premises has become 34 delinquent and (ii) shall not resume water service until HB3852 Engrossed -11- LRB9112662SMdv 1 receiving written notice from the sanitary district that the 2 delinquency has been removed. The sanitary district shall 3 reimburse the privately owned public utility, public or 4 municipal corporation, or political subdivision of the State 5 for the reasonable estimate of water service revenues lost as 6 a result of the discontinuation of water service due to 7 delinquent sewerage charges, and this cost may be placed as a 8 charge upon the person or persons receiving sewerage service. 9 "Sewerage service" means treatment, collection, or transport 10 of sewerage. 11 Such contract may contain appropriate provisions to 12 authorize the sanitary district to proceed, in the name of 13 the municipality, in the collection of such charges and rates 14 as are provided in this section, in the event that the 15 municipality fails to pay when due the charge to be paid to 16 the sanitary district. Any sanitary district, by a civil 17 action, may compel the officials of the municipality to 18 perform all duties imposed upon them by this section, 19 including the making and collection of sufficient charges and 20 rates for that purpose and the application of the revenue 21 therefrom. 22 (Source: P.A. 87-1197.) 23 (70 ILCS 3010/17) (from Ch. 42, par. 319.17) 24 Sec. 17. If after the public hearing the board of 25 trustees of the sanitary district adopts a resolution to 26 proceed with the construction or acquisition of the project, 27 the board of trustees has the power to make and enforce all 28 needful rules and regulations in connection with the 29 construction, acquisition, improvement, or extension, and 30 with the management and maintenance of the project to be 31 constructed or acquired. The board of trustees also has the 32 power to establish the rate or charge to each user of the 33 sewerage system or improvement or extension at a rate which HB3852 Engrossed -12- LRB9112662SMdv 1 will be sufficient to pay the principal and interest of any 2 bonds, issued to pay the cost thereof, maintenance, and 3 operation of the system, improvement, or extension and to 4 provide an adequate depreciation fund therefor. Charges or 5 rates shall be established, revised, and maintained by 6 ordinance and become payable as the board of trustees may 7 determine by ordinance. Such charges or rates shall be liens 8 upon the real estate upon or for which sewerage service is 9 supplied; provided, however, such liens shall not attach to 10 such real estate until such charges or rates have become 11 delinquent as provided by the ordinance of the sanitary 12 district fixing a delinquency date. A lien is created under 13 the preceding sentence only if the sanitary district sends to 14 the owner or owners of record of the real estate, as 15 referenced by the taxpayer's identification number, (i) a 16 copy of each delinquency notice sent to the person who is 17 delinquent in paying the charges or rates or other notice 18 sufficient to inform the owner or owners of record, as 19 referenced by the taxpayer's identification number, that the 20 charges or rates have become delinquent and (ii) a notice 21 that unpaid charges or rates may create a lien on the real 22 estate under this Section. Nothing in this Section shall be 23 construed to give the sanitary district a preference over the 24 rights of any purchaser, mortgagee, judgment creditor or 25 other lien holder arising prior to the filing in the office 26 of the recorder of the county in which such real estate is 27 located, or in the office of the registrar of titles of such 28 county if the property affected is registered under the 29 Torrens System, of notice of said lien. The notice shall 30 consist of a sworn statement setting out (1) a description of 31 the real estate sufficient for the identification thereof, 32 upon or for which the sewerage service was supplied, (2) the 33 amount or amounts of money due for such sewerage service, and 34 (3) the date or dates when such amount or amounts became HB3852 Engrossed -13- LRB9112662SMdv 1 delinquent, (4) the owner of record of the premises. The 2 sanitary district shall send a copy of the notice of the lien 3 to the owner or owners of record of the real estate, as 4 referenced by the taxpayer's identification number. The 5 sanitary district shall have the power to foreclose such lien 6 in like manner and with like effect as in the foreclosure of 7 mortgages on real estate. In addition, liens may be certified 8 annually to the proper tax assessing office, which shall 9 enter the delinquent charges upon the next tax roll against 10 the premises to which the services were rendered. Moneys 11 collected on account of liens shall be promptly remitted to 12 the sanitary district. 13 The sanitary district also has the power, from time to 14 time, to sue the occupant or user of the real estate in a 15 civil action to recover the money due for sewerage services, 16 plus a reasonable attorney's fee, to be fixed by the court. 17 However, whenever a judgment is obtained in such a civil 18 action, the foregoing provision in this section with respect 19 to filing sworn statements of such delinquencies in the 20 office of the recorder of deeds and creating a lien against 21 the real estate shall not be effective as to the charges sued 22 upon and no lien shall exist thereafter against the real 23 estate for that delinquency. Judgment in such a civil action 24 operates as a release and waiver of the lien upon the real 25 estate for the amount of the judgment. The charge provided 26 in this section to be made against each user of an 27 improvement or extension shall be in addition to the charge, 28 if any, made of all users of the system under Section 7 29 hereof, and shall be kept separate and distinct therefrom. 30 The payment of delinquent charges for sewerage service to 31 any premises may be enforced by discontinuing either water 32 service or sewerage service to those premises, or both. A 33 charge is delinquent if it is more than 30 days overdue. Any 34 privately owned public utility, public or municipal HB3852 Engrossed -14- LRB9112662SMdv 1 corporation, or political subdivision of the State furnishing 2 water service to a premises (i) shall discontinue that 3 service upon receiving written notice from the sanitary 4 district providing sewerage service that payment of the 5 charge for sewerage service to the premises has become 6 delinquent and (ii) shall not resume water service until 7 receiving written notice from the sanitary district that the 8 delinquency has been removed. The sanitary district shall 9 reimburse the privately owned public utility, public or 10 municipal corporation, or political subdivision of the State 11 for the reasonable estimate of water service revenues lost as 12 a result of the discontinuation of water service due to 13 delinquent sewerage charges, and this cost may be placed as a 14 charge upon the person or persons receiving sewerage service. 15 "Sewerage service" means treatment, collection, or transport 16 of sewerage. 17 (Source: P.A. 87-1197.) 18 Section 99. Effective date. This Act takes effect upon 19 becoming law.