98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2481

 

Introduced , by Rep. Dennis M. Reboletti

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/Div. 5-44 heading new
55 ILCS 5/5-44005 new
55 ILCS 5/5-44010 new
55 ILCS 5/5-44015 new
55 ILCS 5/5-44020 new
55 ILCS 5/5-44025 new
55 ILCS 5/5-44030 new
55 ILCS 5/5-44035 new
55 ILCS 5/5-44040 new
55 ILCS 5/5-44045 new
55 ILCS 5/5-44050 new
55 ILCS 5/5-44055 new

    Amends the Counties Code. Adds a Division addressing local government reduction and efficiency. Provides the General Assembly's findings regarding units of local government and possible inefficiencies. Provides that in certain counties, the county board may enact an ordinance proposing the dissolution of a unit of local government and, upon the effective date of that ordinance, the chairman of the county board shall issue an audit of the unit. Provides that following the return of this audit report, the county board may adopt an ordinance to dissolve the unit. Provides for a court-appointed trustee-in-dissolution that shall create and implement a plan for consolidation and dissolution of the unit of local government and exercise powers including, but not limited to, the powers and duties of the board of the dissolved unit of government, levying and rebating taxes, and entering into intergovernmental agreements to combine and transfer the functions of the dissolved unit. Further provides for any outstanding indebtedness of the unit, abatement of any tax levied by the unit, and pending litigation involving the unit. Effective immediately.


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A BILL FOR

 

HB2481LRB098 10582 OMW 40844 b

1    AN ACT concerning local government, which shall be known as
2the Government Reduction and Efficiency Law of 2013.
 
3    Be it enacted by the People of the State of Illinois,
4represented in the General Assembly:
 
5    Section 5. The Counties Code is amended by adding the
6Division 5-44 to Article 5 and Sections 5-44005, 5-44010,
75-44015, 5-44020, 5-44025, 5-44030, 5-44035, 5-44040, 5-44045,
85-44050 and 5-44055 as follows:
 
9    (55 ILCS 5/Div. 5-44 heading new)
10
Division 5-44.
11
Local Government Reduction and Efficiency

 
12    (55 ILCS 5/5-44005 new)
13    Sec. 5-44005. Findings. The General Assembly finds:
14    (a) Illinois has more units of local government than any
15other state;
16    (b) The large number of units of local government results
17in the inefficient delivery of governmental services at a
18higher cost to taxpayers;
19    (c) In a number of cases, units of local government provide
20services that are duplicative in nature because they are
21provided by other units of local government;
22    (d) It is in the best interest of taxpayers that more

 

 

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1efficient service delivery structures are established in order
2to replace units of local government that are not financially
3sustainable;
4    (e) Units of local government that are managed by appointed
5governing boards not directly accountable to the electorate can
6encourage a lack of oversight and complacency that is not in
7the best interest of taxpayers;
8    (f) Various provisions of Illinois law governing the
9dissolution of units of local government are inconsistent and
10outdated;
11    (g) The lack of a streamlined method to consolidate
12government functions and dissolve units of local government
13results in an unfair tax burden on the citizens of the State of
14Illinois residing in those units of local government than would
15otherwise be necessary and prevents the expenditure of limited
16public funds for critical programs and services;
17    (h) The General Assembly deems it advisable and in the best
18interests of the residents of Illinois that local governments
19exercise supplemental authority regarding the dissolution of
20units of local government and the consolidation of governmental
21functions.
 
22    (55 ILCS 5/5-44010 new)
23    Sec. 5-44010. Powers; supplemental. The provisions of this
24Division are intended to be supplemental and in addition to all
25other powers or authorities granted to any governmental unit,

 

 

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1shall be construed liberally, and shall not be construed as a
2limitation of any power or authority otherwise granted.
 
3    (55 ILCS 5/5-44015 new)
4    Sec. 5-44015. Applicability. This Division applies only to
5counties with a population of more than 900,000 and less than
63,000,000 that are contiguous to a county with a population of
7more than 3,000,000 and units of local government within these
8counties.
 
9    (55 ILCS 5/5-44020 new)
10    Sec. 5-44020. Definitions. In this Division:
11    "Governing board" means the individual or individuals who
12constitute the corporate authorities of a unit of local
13government.
14    "Unit of local government" or "unit" means any unit of
15local government located entirely within one county, to which
16the county board chairman or county executive directly appoints
17a majority of the governing board or appoints a majority of its
18governing board with the advice and consent of the county
19board, but shall not include a fire protection district that
20directly employs more than 3 regular full-time employees.
 
21    (55 ILCS 5/5-44025 new)
22    Sec. 5-44025. Authority of a county board to dissolve units
23of local government.

 

 

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1    (a) A county board may by ordinance propose the dissolution
2of any unit of local government as defined under Section
35-44020 of this Division. The ordinance shall detail the
4purpose and cost savings to be achieved by the dissolution and
5shall be published in a newspaper of general circulation in the
6area served by the unit of local government and on the county's
7website, if it has one.
8    (b) Upon the effective date of an ordinance enacted
9pursuant to subsection (a) of this Section, the chairman of the
10county board shall cause an audit of (1) all claims against the
11unit, (2) all receipts of the unit, (3) the inventory of all
12real and personal property owned by the unit or under its
13control or management, (4) any debts owed by the unit, and (5)
14may, in his or her discretion, undertake any other audit or
15financial review of the affairs of the unit. The person or
16entity conducting the audit shall report its findings to the
17county board and to the chairman of the county board within 30
18days.
19    (c) Following the return of the audit report required by
20subsection (b) of this Section, the county board may adopt an
21ordinance dissolving the unit 120 days following the effective
22date of the ordinance. Upon adoption of the ordinance, but
23prior to its effective date, the chairman of the county board
24shall petition the circuit court for an order designating a
25trustee-in-dissolution for the unit, immediately terminating
26the terms of the members of the governing board of the unit of

 

 

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1local government on the effective date of the ordinance, and
2providing for the compensation of the trustee, which shall be
3paid from the corporate funds of the unit.
4    (d) Upon the effective date of an ordinance enacted under
5subsection (c) of this Section, and notwithstanding any other
6provision of law, the State's attorney, or his or her designee,
7shall become the exclusive legal representative of the
8dissolving unit of local government. The county treasurer shall
9become the treasurer of the unit of local government and the
10county clerk shall become the secretary of the unit of local
11government.
 
12    (55 ILCS 5/5-44030 new)
13    Sec. 5-44030. Powers and duties of the
14trustee-in-dissolution. The trustee-in-dissolution shall have
15the following powers and duties:
16    (a) To execute all of the powers and duties of the previous
17board;
18    (b) To levy and rebate taxes, subject to the approval of
19the county board, for the purpose of paying the debts,
20obligations, and liabilities of the unit that are outstanding
21on the date of the dissolution and the necessary expenses of
22closing up the affairs of the district if these funds are not
23available from the unit of local government's general fund;
24    (c) To present, within 14 days of his or her appointment, a
25plan for the consolidation and dissolution of the unit of local

 

 

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1government to the county board for its approval. The plan shall
2identify what functions, if any, of the unit of local
3government shall be undertaken by the county upon dissolution
4and whether any taxes previously levied for the provision of
5these functions shall be maintained;
6    (d) To enter into an intergovernmental agreement with one
7or more governmental entities to utilize existing resources
8including, but not limited to, labor, materials, and property,
9as may be needed to carry out the foregoing duties;
10    (e) To enter into an intergovernmental agreement with the
11county to combine or transfer any of the powers, privileges,
12functions, or authority of the unit of local government to the
13county as may be required to facilitate the transition; and
14    (f) To sell the property of the unit and, in case any
15excess remains after all liabilities of the unit are paid, the
16excess shall be transferred to a special fund created and
17maintained by the county treasurer to be expended solely to
18defer the costs incurred by the county in performing the duties
19of the unit, subject to the requirements of Section 5-44035 of
20this Division. Nothing in this Section shall prohibit the
21county from acquiring any or all real or personal property of
22the district.
 
23    (55 ILCS 5/5-44035 new)
24    Sec. 5-44035. Outstanding indebtedness.
25    (a) In case any unit dissolved pursuant to this Division

 

 

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1has bonds or notes outstanding that are a lien on funds on hand
2in the treasury at the time of consolidation, the lien shall be
3unimpaired by the dissolution and shall continue in favor of
4the bond or note holders. The funds on hand subject to a lien
5shall be set apart and held for the purpose of retiring the
6secured debt, and no such funds shall be transferred into the
7general funds of the county.
8    (b) In case any unit dissolved pursuant to this Division
9has unsecured debts outstanding at the time of dissolution, any
10funds in the treasury of the unit or otherwise available and
11not committed shall, to the extent necessary, be applied to the
12payment of these debts.
13    (c) All property in the territory served by the dissolved
14unit of government shall be subject to taxation to pay the
15debts, bonds, and obligations of the consolidated district. The
16county board shall abate this taxation upon the discharge of
17all outstanding obligations.
 
18    (55 ILCS 5/5-44040 new)
19    Sec. 5-44040. Effect of dissolution. Immediately upon the
20dissolution of a unit of local government pursuant to this
21Division:
22    (a) Notwithstanding the provisions of the Special Service
23Area Tax Law that pertain the establishment of special service
24areas, all or part of the territory formerly served by the unit
25of local government may be established as a special service

 

 

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1area or areas of the county if the county board determines that
2this designation is necessary for it to provide services. If
3the boundaries of a special service area created under Section
45-44035 of this Division include territory within a
5municipality, the corporate authorities of that municipality
6may, with the consent of the county, assume responsibility for
7the special service area and become its governing body.
8    (b) In addition to any other powers provided by law, the
9governing body of a special service area created pursuant to
10Section 5-44035 of this Division shall assume and is authorized
11to exercise all the powers and duties of the unit with respect
12to the special service area. The governing body is also
13authorized to continue to levy any tax previously imposed by
14the unit of local government within the special service area.
15    (c) Subsequent increases of the current tax levy within the
16special service area or areas shall be made in accordance with
17the provisions of the Special Service Area Tax Law.
 
18    (55 ILCS 5/5-44045 new)
19    Sec. 5-44045. Abatement of levy. Whenever a county has
20dissolved a unit of local government pursuant to this Division,
21it shall, within 6 months of the effective date of the
22dissolution and every year thereafter, evaluate the need to
23continue any existing tax levy until the county board abates
24the levy in the manner proscribed by the Special Service Area
25Law.
 

 

 

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1    (55 ILCS 5/5-44050 new)
2    Sec. 5-44050. Tax collection. The dissolution of a unit of
3government pursuant to this Division shall not adversely affect
4proceedings for the collection or enforcement of any tax and
5shall proceed to finality as though no dissolution had taken
6place. The proceeds thereof shall be paid over to the treasurer
7of the county to be used for the purpose for which the tax was
8levied or assessed. Proceedings to collect and enforce these
9taxes may be instituted and carried on in the name of the unit.
 
10    (55 ILCS 5/5-44055 new)
11    Sec. 5-44055. Litigation. All suits pending in any court on
12behalf of or against any unit dissolved pursuant to this
13Division may be prosecuted or defended in the name of the
14county by the State's attorney. All judgments obtained for any
15unit dissolved shall be collected and enforced by the county
16for its benefit.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.