HB4371 99TH GENERAL ASSEMBLY

LRB099 13772 AWJ 37740 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4371

Introduced , by Rep. Steven Andersson

SYNOPSIS AS INTRODUCED:

70 ILCS 3715/28

Amends the Water Authorities Act. Provides that a water authority may be dissolved upon referendum of the electors of the water authority. Provides that the business affairs of the water authority shall be closed after approval of a referendum dissolving the water authority and for the disposition of property following dissolution. Further provides that any money remaining shall be paid to the school treasurer of the school district or districts in which the water authority was situated. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Water Authorities Act is amended by changing Section 28 as follows:

(70 ILCS 3715/28)

Sec. 28. Cessation or dissolution of authority organization.

(a) Notwithstanding any other provision of law, if a majority vote of the board of trustees is in favor of the proposition to annex the authority to another authority whose boundaries are contiguous, or consolidate the authority into a municipality with which the authority is coterminous or substantially coterminous, or consolidate the authority into the county in which the authority sits if the authority contains territory within only one county, and if the governing authorities of the governmental unit assuming the functions of the former authority agree by resolution to accept the functions (and jurisdiction over the territory, if applicable) of the consolidated or annexed authority, then the authority shall cease. On the effective date of the annexation or consolidation, all the rights, powers, duties, assets, property, liabilities, indebtedness, obligations, bonding authority, taxing authority, and responsibilities of the authority shall vest in and be assumed by the governmental unit assuming the functions of the former authority.

The employees of the former authority shall be transferred to the governmental unit assuming the functions of the former authority. The governmental unit assuming the functions of the former authority shall exercise the rights and responsibilities of the former authority with respect to those employees. The status and rights of the employees of the former authority under any applicable contracts or collective bargaining agreements, historical representation rights under the Illinois Public Labor Relations Act, or under any pension, retirement, or annuity plan shall not be affected by this amendatory Act.

(b) Any authority created under this Act which does not have outstanding and unpaid any revenue bonds issued under this Act may be dissolved any time after a date which is 4 years after the date of its creation as follows:

Any 100 electors residing within the area of the authority may petition the circuit court to order submitted to referendum the question whether the authority should be dissolved. Upon the filing of the petition, and the determination that it is in accordance with the general election law, the circuit court shall: (1) designate the election at which this question is to be submitted; (2) order notice of the referendum in the manner provided by the general election law; and certify the proposition to the proper election officials for submission in accordance with the general election law.

The proposition shall be in substantially the following form: -------------------------------------------------------------

"Shall the (name of YES

water authority) --------------

be dissolved?" NO -------------------------------------------------------------

If a majority of the votes cast on this question are in favor of dissolution of the authority under this subsection, then such organization shall cease, the authority is dissolved, and the circuit court shall direct the discharge of all outstanding obligations.

If the vote is in favor of dissolution of the authority under this subsection, there shall be no further appointments or elections for trustees. The trustees acting at the time of this vote shall close up the business affairs of the district and make the necessary conveyances of the title to the district property. The terms of the trustees acting at the time of a vote in favor of dissolution are extended until the business affairs are closed up and conveyances of title are completed.

If the vote is against dissolution of the authority, no petition for a referendum under this subsection may be filed within 2 years of the previous referendum.

The dissolution of any authority under this subsection does not affect the obligation of any bonds issued or contracts entered into by such authority, nor invalidate the levy, extension or collection of any taxes upon the property in the debtor authority, but all such bonds and contracts shall be discharged.

All money remaining after the business affairs of the authority have been closed up and all the debts and obligations of the authority have been paid under this subsection, shall be paid to the school treasurer of the school district in which the authority was situated, not including high school districts. When the authority was situated in 2 or more such school districts the money shall be divided between the districts, each district to receive an amount based on the ratio of assessed valuation of real estate of the school district which was situated in the authority to the assessed valuation of the real estate of all school districts which were situated in the authority.

All courts shall take judicial notice of the dissolution of such authority.

(Source: P.A. 98-1002, eff. 8-18-14.)

Section 99. Effective date. This Act takes effect upon becoming law.