Illinois General Assembly - Full Text of SB0494
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Full Text of SB0494  98th General Assembly


Sen. Thomas Cullerton

Filed: 3/15/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 494 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Counties Code is amended by adding the
5Division 5-44 to Article 5 and Sections 5-44005, 5-44010,
65-44015, 5-44020, 5-44025, 5-44030, 5-44035, 5-44040, 5-44045,
75-44050, and 5-44055 as follows:
8    (55 ILCS 5/Div. 5-44 heading new)
Division 5-44. Local Government Reduction and Efficiency

10    (55 ILCS 5/5-44005 new)
11    Sec. 5-44005. Findings and purpose.
12    (a) The General Assembly finds:
13        (1) Illinois has more units of local government than
14    any other state.
15        (2) The large number of units of local government



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1    results in the inefficient delivery of governmental
2    services at a higher cost to taxpayers.
3        (3) In a number of cases, units of local government
4    provide services that are duplicative in nature, as they
5    are provided by other units of local government.
6        (4) It is in the best interest of taxpayers that more
7    efficient service delivery structures be established in
8    order to replace units of local government that are not
9    financially sustainable.
10        (5) Units of local government managed by appointed
11    governing boards not directly accountable to the
12    electorate can encourage a lack of oversight and
13    complacency that is not in the best interest of taxpayers.
14        (6) Various provisions of Illinois law governing the
15    dissolution of units of local government are inconsistent
16    and outdated.
17        (7) The lack of a streamlined method to consolidate
18    government functions and to dissolve units of local
19    government results in an unfair tax burden on the citizens
20    of the State of Illinois residing in those units of local
21    government and prevents the expenditure of limited public
22    funds for critical programs and services.
23    (b) The purpose of this Act is to provide county boards
24with supplemental authority regarding the dissolution of units
25of local government and the consolidation of governmental



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1    (55 ILCS 5/5-44010 new)
2    Sec. 5-44010. Applicability. The powers and authorities
3provided by this Division 5-44 apply only to counties with a
4population of more than 900,000 and less than 3,000,000 that
5are contiguous to a county with a population of more than
63,000,000 and units of local government within such counties.
7    (55 ILCS 5/5-44015 new)
8    Sec. 5-44015. Powers; supplemental. The Sections of this
9Division 5-44 are intended to be supplemental and in addition
10to all other powers and authorities granted to any county
11board, shall be construed liberally, and shall not be construed
12as a limitation of any power or authority otherwise granted.
13    (55 ILCS 5/5-44020 new)
14    Sec. 5-44020. Definitions. In this Division 5-44:
15    "Governing board" means the individual or individuals who
16constitute the corporate authorities of a unit of local
17government; and
18    "Unit of local government" or "unit" means any unit of
19local government located entirely within one county, to which
20the county board chairman or county executive directly appoints
21a majority of its governing board with the advice and consent
22of the county board, but shall not include a fire protection
23district that directly employs any regular full-time employees



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1or a special district organized under the Water Commission Act
2of 1985.
3    (55 ILCS 5/5-44025 new)
4    Sec. 5-44025. Dissolution of units of local government.
5    (a) A county board may, by ordinance, propose the
6dissolution of a unit of local government. The ordinance shall
7detail the purpose and cost savings to be achieved by such
8dissolution, and be published in a newspaper of general
9circulation served by the unit of local government and on the
10county's website, if applicable.
11    (b) Upon the effective date of an ordinance enacted
12pursuant to subsection (a) of this Section, the chairman of the
13county board shall cause an audit of all claims against the
14unit, all receipts of the unit, the inventory of all real and
15personal property owned by the unit or under its control or
16management, and any debts owed by the unit. The chairman may,
17at his or her discretion, undertake any other audit or
18financial review of the affairs of the unit. The person or
19entity conducting such audit shall report the findings of the
20audit to the county board and to the chairman of the county
21board within 30 days.
22    (c) Following the return of the audit report required by
23subsection (b) of this Section, the county board may adopt an
24ordinance dissolving the unit 150 days following the effective
25date of the ordinance. Upon adoption of the ordinance, but



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1prior to its effective date, the chairman of the county board
2shall petition the circuit court for an order designating a
3trustee-in-dissolution for the unit, immediately terminating
4the terms of the members of the governing board of the unit of
5local government on the effective date of the ordinance, and
6providing for the compensation of the trustee, which shall be
7paid from the corporate funds of the unit.
8    (d) Upon the effective date of an ordinance enacted under
9subsection (c) of this Section, and notwithstanding any other
10provision of law, the State's attorney, or his or her designee,
11shall become the exclusive legal representative of the
12dissolving unit of local government. The county treasurer shall
13become the treasurer of the unit of local government and the
14county clerk shall become the secretary of the unit of local
16    (55 ILCS 5/5-44030 new)
17    Sec. 5-44030. Trustee-in-dissolution; powers and duties.
18The trustee-in-dissolution shall have the following powers and
20    (a) to execute all of the powers and duties of the previous
22    (b) to levy and rebate taxes, subject to the approval of
23the county board, for the purpose of paying the debts,
24obligations, and liabilities of the unit that are outstanding
25on the date of the dissolution and the necessary expenses of



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1closing up the affairs of the district if these funds are not
2available from the unit of local government's general fund;
3    (c) to present, within 30 days of his or her appointment, a
4plan for the consolidation and dissolution of the unit of local
5government to the county board for its approval. The plan shall
6identify what functions, if any, of the unit of local
7government shall be undertaken by the county upon dissolution
8and whether any taxes previously levied for the provision of
9these functions shall be maintained;
10    (d) to enter into an intergovernmental agreement with one
11or more governmental entities to utilize existing resources
12including, but not limited to, labor, materials, and property,
13as may be needed to carry out the foregoing duties;
14    (e) to enter into an intergovernmental agreement with the
15county to combine or transfer any of the powers, privileges,
16functions, or authority of the unit of local government to the
17county as may be required to facilitate the transition; and
18    (f) to sell the property of the unit and, in case any
19excess remains after all liabilities of the unit are paid, the
20excess shall be transferred to a special fund created and
21maintained by the county treasurer to be expended solely to
22defer the costs incurred by the county in performing the duties
23of the unit, subject to the requirements of Section 5-44035 of
24this Division. Nothing in this Section shall prohibit the
25county from acquiring any or all real or personal property of
26the district.



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1    (55 ILCS 5/5-44035 new)
2    Sec. 5-44035. Outstanding indebtedness.
3    (a) In case any unit dissolved pursuant to this Division
4has bonds or notes outstanding that are a lien on funds
5available in the treasury at the time of consolidation, such
6lien shall be unimpaired by such dissolution and the lien shall
7continue in favor of the bond or note holders. The funds
8available subject to such a lien shall be set apart and held
9for the purpose of retiring such secured debt and no such funds
10shall be transferred into the general funds of the county.
11    (b) In case any unit dissolved pursuant to this Division
12has unsecured debts outstanding at the time of dissolution, any
13funds in the treasury of such unit or otherwise available and
14not committed shall, to the extent necessary, be applied to the
15payment of such debts.
16    (c) All property in the territory served by the dissolved
17unit of government shall be subject to taxation to pay the
18debts, bonds, and obligations of the dissolved district. The
19county board shall abate this taxation upon the discharge of
20all outstanding obligations.
21    (55 ILCS 5/5-44040 new)
22    Sec. 5-44040. Effect of dissolution. Immediately upon the
23dissolution of a unit of local government pursuant to this



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1    (a) Notwithstanding the provisions of the Special Service
2Area Tax Law of the Property Tax Code that pertain to the
3establishment of special service areas, all or part of the
4territory formerly served by the dissolved unit of local
5government may be established as a special service area or
6areas of the county if the county board by resolution
7determines that this designation is necessary for it to provide
8services. The special service area, if created, shall include
9all territory formerly served by the dissolved unit of local
10government if the dissolved unit has outstanding indebtedness.
11If the boundaries of a special service area created under this
12subsection include territory within a municipality, the
13corporate authorities of that municipality may, with the
14consent of the county, assume responsibility for the special
15service area and become its governing body.
16    (b) In addition to any other powers provided by law, the
17governing body of a special service area created pursuant to
18this subsection shall assume and is authorized to exercise all
19the powers and duties of the dissolved unit with respect to the
20special service area. The governing body is also authorized to
21continue to levy any tax previously imposed by the unit of
22local government within the special service area.
23    (c) Subsequent increases of the current tax levy within the
24special service area or areas shall be made in accordance with
25the provisions of the Special Service Area Tax Law of the
26Property Tax Code.



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1    (55 ILCS 5/5-44045 new)
2    Sec. 5-44045. Abatement of levy. Whenever a county has
3dissolved a unit of local government pursuant to this Division,
4the county or municipality shall, within 6 months of the
5effective date of the dissolution and every year thereafter,
6evaluate the need to continue any existing tax levy until the
7county or municipality abates the levy in the manner set forth
8by the Special Service Area Tax Law of the Property Tax Code.
9    (55 ILCS 5/5-44050 new)
10    Sec. 5-44050. Tax collection and enforcement. The
11dissolution of a unit of government pursuant to this Division
12shall not adversely affect proceedings for the collection or
13enforcement of any tax. Those proceedings shall continue to
14finality as though no dissolution had taken place. The proceeds
15thereof shall be paid over to the treasurer of the county to be
16used for the purpose for which the tax was levied or assessed.
17Proceedings to collect and enforce such taxes may be instituted
18and carried on in the name of the unit.
19    (55 ILCS 5/5-44055 new)
20    Sec. 5-44055. Litigation. All suits pending in any court on
21behalf of or against a unit dissolved pursuant to this Division
22may be prosecuted or defended in the name of the county by the
23state's attorney. All judgments obtained for a unit dissolved



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1pursuant to this Division shall be collected and enforced by
2the county for its benefit.
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".