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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
| [ Senate Amendment 003 ] |
92_HB2380eng HB2380 Engrossed LRB9206653OBpc 1 AN ACT concerning bonds. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Construction Bond Act is amended 5 by changing Section 3 as follows: 6 (30 ILCS 550/3) 7 Sec. 3. Builder or developer cash bond or other surety. 8 (a) A county or municipality may not require a cash 9 bond, irrevocable letter of credit, surety bond, or letter of 10 commitment issued by a bank, savings and loan association, 11 surety, or insurance company from a builder or developer to 12 guarantee completion of a project improvement when the 13 builder or developer has filed with the county or municipal 14 clerk a current, irrevocable letter of credit, surety bond, 15 or letter of commitment issued by a bank, savings and loan 16 association, surety, or insurance company, deemed good and 17 sufficient by the county or municipality accepting such 18 security, in an amount equal to or greater than 110% of the 19 amount of the bid on each project improvement. A builder or 20 developer has the optionmay electto utilize a cash bond,an21 irrevocable letter of credit, surety bond, or letter of 22 commitment, issued by a bank, savings and loan association, 23 surety, or insurance company, deemed good and sufficient by 24 the county or municipality, to satisfy any cash bond 25 requirement established by a county or municipality. The 26 county or municipality must approve and deem a surety or 27 insurance company good and sufficient for the purposes set 28 forth in this Section if the surety or insurance company is 29 authorized by the Illinois Department of Insurance to sell 30 and issue sureties in the State of Illinois. 31 (b) If a county or municipality receives a cash bond, HB2380 Engrossed -2- LRB9206653OBpc 1 irrevocable letter of credit, or surety bond from a builder 2 or developer to guarantee completion of a project 3 improvement, the county or municipality shall (i) register 4 the bond under the address of the project and the 5 construction permit number and (ii) give the builder or 6 developer a receipt for the bond. The county or municipality 7 shall establish and maintain a separate account for all cash 8 bonds received from builders and developers to guarantee 9 completion of a project improvement. 10 (c) The county or municipality shall refund a cash bond 11 to a builder or developer, or release the irrevocable letter 12 of credit or surety bond, within 60 days after the builder or 13 developer notifies the county or municipality in writing of 14 the completion of the project improvement for which the bond 15 was required. For these purposes, "completion" means that the 16 county or municipality has determined that the project 17 improvement for which the bond was required is complete or a 18 licensed engineer or licensed architect has certified to the 19 builder or developer and the county or municipality that the 20 project improvement has been completed to the applicable 21 codes and ordinances. The county or municipality shall pay 22 interest to the builder or developer, beginning 60 days after 23 the builder or developer notifies the county or municipality 24 in writing of the completion of the project improvement, on 25 any bond not refunded to a builder or developer, at the rate 26 of 1% per month. 27 (d) A home rule county or municipality may not require 28 or maintain cash bonds, irrevocable letters of credit, surety 29 bonds, or letters of commitment issued by a bank, savings and 30 loan association, surety, or insurance company from builders 31 or developers in a manner inconsistent with this Section. 32 This Section supercedes and controls over other provisions of 33 the Counties Code or Illinois Municipal Code as they apply to 34 and guarantee completion of a project improvement that is HB2380 Engrossed -3- LRB9206653OBpc 1 required by the county or municipality, regardless of whether 2 the project improvement is a condition of annexation 3 agreements. This Section is a denial and limitation under 4 subsection (i) of Section 6 of Article VII of the Illinois 5 Constitution on the concurrent exercise by a home rule county 6 or municipality of powers and functions exercised by the 7 State. 8 (Source: P.A. 89-518, eff. 1-1-97; 90-558, eff. 12-12-97.) 9 Section 10. The Counties Code is amended by changing 10 Sections 5-1041 and 5-1123 as follows: 11 (55 ILCS 5/5-1041) (from Ch. 34, par. 5-1041) 12 Sec. 5-1041. Maps, plats and subdivisions. A county board 13 may prescribe, by resolution or ordinance, reasonable rules 14 and regulations governing the location, width and course of 15 streets and highways and of floodplain, stormwater and 16 floodwater runoff channels and basins, and the provision of 17 necessary public grounds for schools, public libraries, parks 18 or playgrounds, in any map, plat or subdivision of any block, 19 lot or sub-lot or any part thereof or any piece or parcel of 20 land, not being within any city, village or incorporated 21 town. The rules and regulations may include such reasonable 22 requirements with respect to water supply and sewage 23 collection and treatment as may be established by the 24 Environmental Protection Agency, and such reasonable 25 requirements with respect to floodplain and stormwater 26 management as may be established by the County Stormwater 27 Management Committee established under Section 5-1062 of this 28 Code, and such reasonable requirements with respect to street 29 drainage and surfacing as may be established by the county 30 engineer or superintendent of highways and which by 31 resolution shall be deemed to be the minimum requirements in 32 the interest of the health, safety, education and convenience HB2380 Engrossed -4- LRB9206653OBpc 1 of the public of the county; and may provide by resolution 2 that the map, plat or subdivision shall be submitted to the 3 county board or to some officer to be designated by the 4 county board for their or his approval. The county board 5 shall have a qualified engineer make an estimate of the 6 probable expenditures necessary to enable any person to 7 conform with the standards of construction established by the 8 board pursuant to the provisions of this Section. Except as 9 provided in Section 3 of the Public Construction Bond Act, 10 each person who seeks the county board's approval of a map, 11 plat or subdivision shall post a good and sufficient cash 12 bond, irrevocable letter of credit, surety bond, or other 13 adequate security with the county clerk, in a penal sum 14 sufficient to cover the estimate of expenditures made by the 15 estimating engineer. The cash bond, irrevocable letter of 16 credit, surety bond, or other adequate security shall be 17 conditioned upon faithful adherence to the rules and 18 regulations of the county board promulgated pursuant to the 19 authorization granted to it by this Section or by Section 20 5-1062 of this Code, and in such cases no such map, plat or 21 subdivision shall be entitled to record in the proper county 22 or have any validity until it has been so approved. If the 23 county board requires a cash bond, letter of credit, surety, 24 or any other method to cover the costs and expenses and to 25 insure completion of the requirements, the requirements shall 26 be subject to the provisions of Section 5-1123 of this Code. 27 This Section is subject to the provisions of Section 5-1123. 28 The county board may, by resolution, provide a schedule 29 of fees sufficient to reimburse the county for the costs 30 incurred in reviewing such maps, plats and subdivisions 31 submitted for approval to the county board. The fees 32 authorized by this Section are to be paid into the general 33 corporate fund of the county by the party desiring to have 34 the plat approved. HB2380 Engrossed -5- LRB9206653OBpc 1 No officer designated by a county board for the approval 2 of plats shall engage in the business of surveying, and no 3 map, plat or subdivision shall be received for record or have 4 any validity which has been prepared by or under the 5 direction of such plat officer. 6 It is the intention of this amendatory Act of 1990 to 7 repeal the language added to Section 25.09 of "An Act to 8 revise the law in relation to counties", approved March 31, 9 1874, by P.A. 86-614, Section 25.09 of that Act being the 10 predecessor of this Section. 11 (Source: P.A. 90-558, eff. 12-12-97; 91-328, eff. 1-1-00.) 12 (55 ILCS 5/5-1123) 13 Sec. 5-1123. Builder or developer cash bond or other 14 surety. 15 (a) A county may not require a cash bond, irrevocable 16 letter of credit, surety bond, or letter of commitment issued 17 by a bank, savings and loan association, surety, or insurance 18 company from a builder or developer to guarantee completion 19 of a project improvement when the builder or developer has 20 filed with the county clerk a current, irrevocable letter of 21 credit, surety bond, or letter of commitment, issued by a 22 bank, savings and loan association, surety, or insurance 23 company, deemed good and sufficient by the county accepting 24 such security, in an amount equal to or greater than 110% of 25 the amount of the bid on each project improvement. A builder 26 or developer has the optionmay electto utilize a cash bond, 27anirrevocable letter of credit, surety bond, or letter of 28 commitment issued by a bank, savings and loan association, 29 surety, or insurance company, deemed good and sufficient by 30 the county, to satisfy any cash bond requirement established 31 by a county. The county must approve and deem a surety or 32 insurance company good and sufficient for the purposes set 33 forth in this Section if the surety or insurance company is HB2380 Engrossed -6- LRB9206653OBpc 1 authorized by the Illinois Department of Insurance to sell 2 and issue sureties in the State of Illinois. 3 (b) If a county receives a cash bond, irrevocable letter 4 of credit, or surety bond from a builder or developer to 5 guarantee completion of a project improvement, the county 6 shall (i) register the bond under the address of the project 7 and the construction permit number and (ii) give the builder 8 or developer a receipt for the bond. The county shall 9 establish and maintain a separate account for all cash bonds 10 received from builders and developers to guarantee completion 11 of a project improvement. 12 (c) The county shall refund a cash bond to a builder or 13 developer, or release the irrevocable letter of credit or 14 surety bond, within 60 days after the builder or developer 15 notifies the county in writing of the completion of the 16 project improvement for which the bond was required. For 17 these purposes, "completion" means that the county has 18 determined that the project improvement for which the bond 19 was required is complete or a licensed engineer or licensed 20 architect has certified to the builder or developer and the 21 county that the project improvement has been completed to the 22 applicable codes and ordinances. The county shall pay 23 interest to the builder or developer, beginning 60 days after 24 the builder or developer notifies the county in writing of 25 the completion of the project improvement, on any bond not 26 refunded to a builder or developer, at the rate of 1% per 27 month. 28 (d) A home rule county may not require or maintain cash 29 bonds, irrevocable letters of credit, surety bonds, or other 30 adequate securities from builders or developers in a manner 31 inconsistent with this Section. This Section supercedes and 32 controls over other provisions of this Code as they apply to 33 and guarantee completion of a project improvement that is 34 required by the county. This Section is a denial and HB2380 Engrossed -7- LRB9206653OBpc 1 limitation under subsection (i) of Section 6 of Article VII 2 of the Illinois Constitution on the concurrent exercise by a 3 home rule county of powers and functions exercised by the 4 State. 5 (Source: P.A. 89-518, eff. 1-1-97; 90-14, eff. 7-1-97; 6 90-558, eff. 12-12-97.) 7 Section 15. The Illinois Municipal Code is amended by 8 changing Sections 11-12-8 and 11-39-3 as follows: 9 (65 ILCS 5/11-12-8) (from Ch. 24, par. 11-12-8) 10 Sec. 11-12-8. Compliance of plat with map; designation of 11 public lands; approval; bond; order; failure to act upon 12 plat. The corporate authorities of the municipality shall 13 determine whether a proposed plat of subdivision or 14 resubdivision complies with the official map. To secure such 15 determination, the person requesting the subdivision or 16 resubdivision shall file four copies of a plat thereof with 17 the clerk of the municipality, and shall furnish therewith 18 four copies of all data necessary to show compliance with all 19 applicable municipal regulations and shall make application 20 for preliminary or final approval of the proposed plat. 21 Whenever the reasonable requirements provided by the 22 ordinance including the official map shall indicate the 23 necessity for providing for a school site, park site, or 24 other public lands within any proposed subdivision for which 25 approval has been requested, and no such provision has been 26 made therefor, the municipal authority may require that lands 27 be designated for such public purpose before approving such 28 plat. Whenever a final plat of subdivision, or part thereof, 29 has been approved by the corporate authorities as complying 30 with the official map and there is designated therein a 31 school site, park site or other public land, the corporate 32 authorities having jurisdiction of such use, be it a school HB2380 Engrossed -8- LRB9206653OBpc 1 board, park board or other authority, such authority shall 2 acquire the land so designated by purchase or commence 3 proceedings to acquire such land by condemnation within one 4 year from the date of approval of such plat; and if it does 5 not do so within such period of one year, the land so 6 designated may then be used by the owners thereof in any 7 other manner consistent with the ordinance including the 8 official map and the zoning ordinance of the municipality. 9 The corporate authorities may by ordinance provide that a 10 plat of subdivision may be submitted initially to the plan 11 commission for preliminary approval. The application for 12 preliminary approval shall show location and width of 13 proposed streets and public ways, shall indicate proposed 14 location of sewers and storm drains, proposed dedication of 15 public grounds, if any, lot sizes, proposed easements for 16 public utilities, and proposed method of sewage and waste 17 disposal, but need not contain specifications for proposed 18 improvements. 19 The plan Commission shall approve or disapprove the 20 application for preliminary approval within 90 days from the 21 date of the application or the filing by the applicant of the 22 last item of required supporting data, whichever date is 23 later, unless such time is extended by mutual consent. If 24 such plat is disapproved, then within said 90 days the plan 25 commission shall furnish to applicant in writing a statement 26 setting forth the reason for disapproval and specifying with 27 particularity the aspects in which the proposed plat fails to 28 conform to the ordinances including official map. If such 29 plat is approved the corporate authority shall accept or 30 reject said plat within 30 days after its next regular stated 31 meeting following the action of the plan commission. 32 Preliminary approval shall not qualify a plat for recording. 33 Application for final approval of a plat shall be made 34 not later than one year after preliminary approval has been HB2380 Engrossed -9- LRB9206653OBpc 1 granted. This application must be supported by such drawings, 2 specifications and bond as may be necessary to demonstrate 3 compliance with all requirements of this statute and such 4 regulations as the corporate authorities may provide by 5 ordinance under authority of this statute. This Section is 6 subject to the provisions of Section 11-39-3 of this Code. 7 The applicant may elect to have final approval of a 8 geographic part or parts of the plat that received 9 preliminary approval, and may delay application for approval 10 of other parts until a later date or dates beyond one year 11 with the approval of the municipal authorities; provided, all 12 facilities required to serve the part or parts for which 13 final approval is sought have been provided. In such case 14 only such part or parts of the plat as have received final 15 approval shall be recorded. 16 When a person submitting a plat of subdivision or 17 resubdivision for final approval has supplied all drawings, 18 maps and other documents required by the municipal ordinances 19 to be furnished in support thereof, and if all such material 20 meets all municipal requirements, the corporate authorities 21 shall approve the proposed plat within 60 days from the date 22 of filing the last required document or other paper or within 23 60 days from the date of filing application for final 24 approval of the plat, whichever date is later. The applicant 25 and the corporate authorities may mutually agree to extend 26 the 60 day period. 27 Except as provided in Section 3 of the Public 28 Construction Bond Act, the corporate authorities may provide 29 that any person, firm or corporation seeking approval of a 30 subdivision or resubdivision map or plat shall post a good 31 and sufficient cash bond, irrevocable letter of credit, or 32 surety bond with the municipal clerk in a penal sum 33 sufficient to cover the estimate made by the municipal 34 engineer, or other authorized person, of expenditures, HB2380 Engrossed -10- LRB9206653OBpc 1 including but not limited to reasonable inspection fees to be 2 borne by the applicant, necessary to conform to the 3 requirements established and conditioned upon completion of 4 said requirements in a reasonable time. The corporate 5 authorities may, by ordinance, prescribe the form of the cash 6 bond, irrevocable letter of credit, or surety bond and may 7 require surety to be approved by the corporate authorities; 8 provided, that a municipality may permit the depositing of 9 cash or other security acceptable to the corporate 10 authorities, to complete the improvements required in lieu of 11 a bond if it shall so provide by ordinance; and further 12 provided, that no bond or security shall be required to be 13 filed until the corporate authorities have approved the plat 14 in all other respects and have notified the applicant of such 15 approval. If the corporate authorities require a cash bond, 16 letter of credit, surety, or any other method to cover the 17 costs and expenses and to insure completion of the 18 requirementsIf the corporate authorities require a cash19bond, the requirementsrequirementshall be subject to the 20 provisions of Section 11-39-3 of this Code. 21 If the preliminary or final plat is approved, the 22 municipal clerk shall attach a certified copy of the order or 23 resolution of approval to a copy of the plat. If the proposed 24 plat is disapproved, the order or resolution shall state the 25 reasons for the disapproval, specifying with particularity 26 the aspects in which the proposed plat fails to conform to 27 the official map. A copy of the order or resolution shall be 28 filed in the office of the municipal clerk. 29 If the corporate authorities fail to act upon the final 30 plat within the time prescribed the applicant may, after 31 giving 5 days written notice to the corporate authorities, 32 file a complaint for summary judgment in the circuit court 33 and upon showing that the corporate authorities have failed 34 to act within the time prescribed the court shall enter an HB2380 Engrossed -11- LRB9206653OBpc 1 order authorizing the recorder to record the plat as finally 2 submitted without the approval of the corporate authorities. 3 A plat so recorded shall have the same force and effect as 4 though that plat had been approved by the corporate 5 authorities. If the corporate authorities refuse to act upon 6 the final plat within the time prescribed and if their 7 failure to act thereon is wilful, upon such showing and upon 8 proof of damages the municipality shall be liable therefor. 9 (Source: P.A. 90-558, eff. 12-12-97; 91-328, eff. 1-1-00.) 10 (65 ILCS 5/11-39-3) 11 Sec. 11-39-3. Builder or developer cash bond or other 12 surety. 13 (a) A municipality may not require a cash bond, 14 irrevocable letter of credit, surety bond, or letter of 15 commitment issued by a bank, savings and loan association, 16 surety, or insurance company from a builder or developer to 17 guarantee completion of a project improvement when the 18 builder or developer has filed with the municipal clerk a 19 current, irrevocable letter of credit, surety bond, or letter 20 of commitment issued by a bank, savings and loan association, 21 surety, or insurance company, deemed good and sufficient by 22 the municipality accepting such security, in an amount equal 23 to or greater than 110% of the amount of the bid on each 24 project improvement. A builder or developer has the option 25may electto utilize a cash bond,anirrevocable letter of 26 credit, surety bond, or letter of commitment, issued by a 27 bank, savings and loan association, surety, or insurance 28 company, deemed good and sufficient by the municipality, to 29 satisfy any cash bond requirement established by a 30 municipality. The municipality must approve and deem a surety 31 or insurance company good and sufficient for the purposes set 32 forth in this Section if the surety or insurance company is 33 authorized by the Illinois Department of Insurance to sell HB2380 Engrossed -12- LRB9206653OBpc 1 and issue sureties in the State of Illinois. 2 (b) If a municipality receives a cash bond, irrevocable 3 letter of credit, or surety bond from a builder or developer 4 to guarantee completion of a project improvement, the 5 municipality shall (i) register the bond under the address of 6 the project and the construction permit number and (ii) give 7 the builder or developer a receipt for the bond. The 8 municipality shall establish and maintain a separate account 9 for all cash bonds received from builders and developers to 10 guarantee completion of a project improvement. 11 (c) The municipality shall refund a cash bond to a 12 builder or developer, or release the irrevocable letter of 13 credit or surety bond within 60 days after the builder or 14 developer notifies the municipality in writing of the 15 completion of the project improvement for which the bond was 16 required. For these purposes, "completion" means that the 17 municipality has determined that the project improvement for 18 which the bond was required is complete or a licensed 19 engineer or licensed architect has certified to the builder 20 or developer and the municipality that the project 21 improvement has been completed to the applicable codes and 22 ordinances. The municipality shall pay interest to the 23 builder or developer, beginning 60 days after builder or 24 developer notifies the municipality in writing of the 25 completion of the project improvement, on any bond not 26 refunded to a builder or developer, at the rate of 1% per 27 month. 28 (d) A home rule municipality may not require or maintain 29 cash bonds, irrevocable letters of credit, surety bonds, or 30 letters of commitment issued by a bank, savings and loan 31 association, surety, or insurance company from builders or 32 developers in a manner inconsistent with this Section. This 33 Section supercedes and controls over other provisions of this 34 Code as they apply to and guarantee completion of a project HB2380 Engrossed -13- LRB9206653OBpc 1 improvement that is required by the municipality, regardless 2 of whether the project improvement is a condition of 3 annexation agreements. This Section is a denial and 4 limitation under subsection (i) of Section 6 of Article VII 5 of the Illinois Constitution on the concurrent exercise by a 6 home rule municipality of powers and functions exercised by 7 the State. 8 (Source: P.A. 89-518, eff. 1-1-97; 90-558, eff. 12-12-97.)