100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4667

 

Introduced , by Rep. John Cavaletto

 

SYNOPSIS AS INTRODUCED:
 
745 ILCS 10/9-107  from Ch. 85, par. 9-107

    Amends the Local Governmental and Governmental Employees Tort Immunity Act. Provides that funds from certain taxes authorized under the Act may be used for the funding of health or medical insurance premiums or health savings plans. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Local Governmental and Governmental
5Employees Tort Immunity Act is amended by changing Section
69-107 as follows:
 
7    (745 ILCS 10/9-107)  (from Ch. 85, par. 9-107)
8    Sec. 9-107. Policy; tax levy.
9    (a) The General Assembly finds that the purpose of this
10Section is to provide an extraordinary tax for funding expenses
11relating to (i) tort liability, (ii) liability relating to
12actions brought under the federal Comprehensive Environmental
13Response, Compensation, and Liability Act of 1980 or the
14Environmental Protection Act, but only until December 31, 2010,
15(iii) insurance, and (iv) risk management programs. Thus, the
16tax has been excluded from various limitations otherwise
17applicable to tax levies. Notwithstanding the extraordinary
18nature of the tax authorized by this Section, however, it has
19become apparent that some units of local government are using
20the tax revenue to fund expenses more properly paid from
21general operating funds. These uses of the revenue are
22inconsistent with the limited purpose of the tax authorization.
23    Therefore, the General Assembly declares, as a matter of

 

 

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1policy, that (i) the use of the tax revenue authorized by this
2Section for purposes not expressly authorized under this Act is
3improper and (ii) the provisions of this Section shall be
4strictly construed consistent with this declaration and the
5Act's express purposes.
6    (b) A local public entity may annually levy or have levied
7on its behalf taxes upon all taxable property within its
8territory at a rate that will produce a sum that will be
9sufficient to: (i) pay the cost of insurance, individual or
10joint self-insurance (including reserves thereon), including
11all operating and administrative costs and expenses directly
12associated therewith, claims services and risk management
13directly attributable to loss prevention and loss reduction,
14legal services directly attributable to the insurance,
15self-insurance, or joint self-insurance program, and
16educational, inspectional, and supervisory services directly
17relating to loss prevention and loss reduction, participation
18in a reciprocal insurer as provided in Sections 72, 76, and 81
19of the Illinois Insurance Code, or participation in a
20reciprocal insurer, all as provided in settlements or judgments
21under Section 9-102, including all costs and reserves directly
22attributable to being a member of an insurance pool, under
23Section 9-103; (ii) pay the costs of and principal and interest
24on bonds issued under Section 9-105; (iii) pay judgments and
25settlements under Section 9-104 of this Act; (iv) discharge
26obligations under Section 34-18.1 of the School Code or make

 

 

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1transfers under Section 17-2A of the School Code; (v) pay
2judgments and settlements under the federal Comprehensive
3Environmental Response, Compensation, and Liability Act of
41980 and the Environmental Protection Act, but only until
5December 31, 2010; (vi) pay the costs authorized by the
6Metro-East Sanitary District Act of 1974 as provided in
7subsection (a) of Section 5-1 of that Act; and (vii) pay the
8cost of risk management programs. Provided it complies with any
9other applicable statutory requirements, the local public
10entity may self-insure and establish reserves for expected
11losses for any property damage or for any liability or loss for
12which the local public entity is authorized to levy or have
13levied on its behalf taxes for the purchase of insurance or the
14payment of judgments or settlements under this Section. The
15decision of the board to establish a reserve shall be based on
16reasonable actuarial or insurance underwriting evidence and
17subject to the limits and reporting provisions in Section
189-103.
19    If a school district was a member of a
20joint-self-health-insurance cooperative that had more
21liability in outstanding claims than revenue to pay those
22claims, the school board of that district may by resolution
23make a one-time transfer from any fund in which tort immunity
24moneys are maintained to the fund or funds from which payments
25to a joint-self-health-insurance cooperative can be or have
26been made of an amount not to exceed the amount of the

 

 

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1liability claim that the school district owes to the
2joint-self-health-insurance cooperative or that the school
3district paid within the 2 years immediately preceding the
4effective date of this amendatory Act of the 92nd General
5Assembly.
6    Funds raised pursuant to this Section shall, unless
7lawfully transferred as provided in Section 17-2A of the School
8Code, only be used for the purposes specified in this Act,
9including protection against and reduction of any liability or
10loss described hereinabove and under Federal or State common or
11statutory law, the Workers' Compensation Act, the Workers'
12Occupational Diseases Act, and the Unemployment Insurance Act
13or the funding of health or medical insurance premiums or
14health savings plans. Funds raised pursuant to this Section may
15be invested in any manner in which other funds of local public
16entities may be invested under Section 2 of the Public Funds
17Investment Act. Interest on such funds shall be used only for
18purposes for which the funds can be used or, if surplus, must
19be used for abatement of property taxes levied by the local
20taxing entity.
21    A local public entity may enter into intergovernmental
22contracts with a term of not to exceed 12 years for the
23provision of joint self-insurance which contracts may include
24an obligation to pay a proportional share of a general
25obligation or revenue bond or other debt instrument issued by a
26local public entity which is a party to the intergovernmental

 

 

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1contract and is authorized by the terms of the contract to
2issue the bond or other debt instrument. Funds due under such
3contracts shall not be considered debt under any constitutional
4or statutory limitation and the local public entity may levy or
5have levied on its behalf taxes to pay for its proportional
6share under the contract. Funds raised pursuant to
7intergovernmental contracts for the provision of joint
8self-insurance may only be used for the payment of any cost,
9liability or loss against which a local public entity may
10protect itself or self-insure pursuant to Section 9-103 or for
11the payment of which such entity may levy a tax pursuant to
12this Section, including tort judgments or settlements, costs
13associated with the issuance, retirement or refinancing of the
14bonds or other debt instruments, the repayment of the principal
15or interest of the bonds or other debt instruments, the costs
16of the administration of the joint self-insurance fund,
17consultant, and risk care management programs or the costs of
18insurance. Any surplus returned to the local public entity
19under the terms of the intergovernmental contract shall be used
20only for purposes set forth in subsection (a) of Section 9-103
21and Section 9-107 or for abatement of property taxes levied by
22the local taxing entity.
23    Any tax levied under this Section shall be levied and
24collected in like manner with the general taxes of the entity
25and shall be exclusive of and in addition to the amount of tax
26that entity is now or may hereafter be authorized to levy for

 

 

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

 

 

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1    validation of taxes levied applies to all cases pending on
2    or after the effective date of this amendatory Act of 1994.
3        (3) Paragraphs (1) and (2) do not apply to a hospital
4    organized under Article 170 or 175 of the Township Code,
5    under the Town Hospital Act, or under the Township
6    Non-Sectarian Hospital Act and do not give any authority to
7    levy taxes on behalf of such a hospital in excess of the
8    rate limitation imposed by law on taxes levied for general
9    corporate purposes. A hospital organized under Article 170
10    or 175 of the Township Code, under the Town Hospital Act,
11    or under the Township Non-Sectarian Hospital Act is not
12    prohibited from levying taxes in support of tort liability
13    bonds if the taxes do not cause the hospital's aggregate
14    tax rate from exceeding the rate limitation imposed by law
15    on taxes levied for general corporate purposes.
16    Revenues derived from such tax shall be paid to the
17treasurer of the local taxing entity as collected and used for
18the purposes of this Section and of Section 9-102, 9-103, 9-104
19or 9-105, as the case may be. If payments on account of such
20taxes are insufficient during any year to meet such purposes,
21the entity may issue tax anticipation warrants against the
22current tax levy in the manner provided by statute.
23(Source: P.A. 99-922, eff. 1-17-17.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.