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| | HB4371 Enrolled | | LRB099 13772 AWJ 37740 b |
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1 | | AN ACT concerning local government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Water Authorities Act is amended by changing |
5 | | Section 28 as follows: |
6 | | (70 ILCS 3715/28) |
7 | | Sec. 28. Cessation or dissolution of authority |
8 | | organization. |
9 | | (a) Notwithstanding any other provision of law, if a |
10 | | majority vote of the board of trustees is in favor of the |
11 | | proposition to annex the authority to another authority whose |
12 | | boundaries are contiguous, or consolidate the authority into a |
13 | | municipality with which the authority is coterminous or |
14 | | substantially coterminous, or consolidate the authority into |
15 | | the county in which the authority sits if the authority |
16 | | contains territory within only one county, and if the governing |
17 | | authorities of the governmental unit assuming the functions of |
18 | | the former authority agree by resolution to accept the |
19 | | functions (and jurisdiction over the territory, if applicable) |
20 | | of the consolidated or annexed authority, then the authority |
21 | | shall cease. On the effective date of the annexation or |
22 | | consolidation, all the rights, powers, duties, assets, |
23 | | property, liabilities, indebtedness, obligations, bonding |
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| | HB4371 Enrolled | - 2 - | LRB099 13772 AWJ 37740 b |
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1 | | authority, taxing authority, and responsibilities of the |
2 | | authority shall vest in and be assumed by the governmental unit |
3 | | assuming the functions of the former authority. |
4 | | The employees of the former authority shall be transferred |
5 | | to the governmental unit assuming the functions of the former |
6 | | authority. The governmental unit assuming the functions of the |
7 | | former authority shall exercise the rights and |
8 | | responsibilities of the former authority with respect to those |
9 | | employees. The status and rights of the employees of the former |
10 | | authority under any applicable contracts or collective |
11 | | bargaining agreements, historical representation rights under |
12 | | the Illinois Public Labor Relations Act, or under any pension, |
13 | | retirement, or annuity plan shall not be affected by this |
14 | | amendatory Act.
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15 | | (b) Any authority created under this Act, other than an |
16 | | authority servicing any part of the City of Chicago, which does
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17 | | not have any outstanding and unpaid revenue bonds issued under |
18 | | this Act
may be dissolved any time after a date which is 4 |
19 | | years after the date
of its creation as follows: |
20 | | Any 500 electors residing within the area of the authority |
21 | | may
petition the circuit court to order submitted to referendum
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22 | | the question whether the authority
should be dissolved. Upon |
23 | | the filing of the petition, and the determination
that it is in |
24 | | accordance with the general election law, the circuit court
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25 | | shall: designate the election at which this question is to be |
26 | | submitted;
order notice of the referendum in the manner
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| | HB4371 Enrolled | - 3 - | LRB099 13772 AWJ 37740 b |
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1 | | provided by the general election law; and certify the |
2 | | proposition to the
proper election officials for submission in |
3 | | accordance with the general election law.
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4 | | The proposition shall be in substantially
the following |
5 | | form:
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6 | | ------------------------------------------------------------- |
7 | | "Shall the (name of YES |
8 | | water authority) -------------- |
9 | | be dissolved?" NO |
10 | | -------------------------------------------------------------
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11 | | If a majority of the
votes cast on this question are in |
12 | | favor of dissolution of the authority
under this subsection, |
13 | | then such organization shall cease, the authority is dissolved, |
14 | | and the circuit court shall direct the
discharge of
all |
15 | | outstanding obligations.
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16 | | If the vote is in favor of dissolution of the authority
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17 | | under this subsection, there shall be no further appointments |
18 | | or elections for trustees.
Except as otherwise provided for in |
19 | | this subsection, the trustees acting at the time of this vote |
20 | | shall close up the business
affairs of the district and make |
21 | | the necessary conveyances of the title
to the district |
22 | | property. The terms of the trustees acting at the time of a |
23 | | vote in favor of dissolution are extended until the business |
24 | | affairs are closed up and conveyances of title are completed.
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| | HB4371 Enrolled | - 4 - | LRB099 13772 AWJ 37740 b |
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1 | | To the extent that the authority has entered into a |
2 | | multiyear lease on a real property asset (including, but not |
3 | | limited to, surface water property) that it possesses, the |
4 | | court, upon application of the trustees, may order the trustees |
5 | | to arrange the transfer of such real property asset, instead of |
6 | | liquidating the real property asset, to a unit of local |
7 | | government with legal authority to operate the real property |
8 | | asset. Such transfer may be made with or without compensation |
9 | | in the discretion of the court in accordance with this |
10 | | paragraph. In determining whether compensation shall be paid, |
11 | | the court shall determine if the same or substantially similar |
12 | | groups of citizens will benefit from the real property asset |
13 | | after transfer. To the extent that the same or substantially |
14 | | similar groups of citizens will continue to benefit from the |
15 | | real property asset, the court is not required to order |
16 | | compensation paid by the receiving unit of local government to |
17 | | the authority. To the extent that a substantial change occurs |
18 | | to the groups of citizens that will benefit from the real |
19 | | property asset after the transfer, the court shall determine, |
20 | | after receiving input from the trustees and the unit of local |
21 | | government, an equitable method of compensation, after |
22 | | receiving input from the trustees and the unit of local |
23 | | government, to be received from the unit of local government to |
24 | | whom the real property asset is being transferred. The court |
25 | | shall liberally construe this provision to provide for an |
26 | | equitable determination of relative benefit. |
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| | HB4371 Enrolled | - 5 - | LRB099 13772 AWJ 37740 b |
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1 | | If the vote is against dissolution of the authority, no
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2 | | petition for a referendum under this subsection may be filed |
3 | | within 4 years
of the previous referendum.
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4 | | The dissolution of any authority under this subsection does
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5 | | not affect the obligation of any bonds issued or contracts |
6 | | entered into
by such authority, nor invalidate the levy, |
7 | | extension or collection of
any taxes upon the property in the |
8 | | debtor authority, but all such bonds
and contracts shall be |
9 | | fulfilled or repaid as required under the terms of the bonds or |
10 | | contracts.
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11 | | All money remaining after the business affairs of the |
12 | | authority have
been closed up and all the debts and obligations |
13 | | of the authority have
been paid under this subsection, shall be |
14 | | paid to the township or townships in which such authority is |
15 | | situated, or the county or counties of any portion of such |
16 | | authority that is situated outside of a township, in the |
17 | | proportion that the taxable value the real property in the |
18 | | authority situated in each township or county bears to the |
19 | | taxable value of all the real property in the authority.
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20 | | All courts shall take judicial notice of the dissolution of |
21 | | such
authority. |
22 | | (Source: P.A. 98-1002, eff. 8-18-14.)
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23 | | Section 99. Effective date. This Act takes effect upon |
24 | | becoming law.
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