101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2749

 

Introduced 2/4/2020, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-10-1  from Ch. 24, par. 11-10-1
65 ILCS 5/11-10-2  from Ch. 24, par. 11-10-2

    Amends the Illinois Municipal Code. Provides that the fee that must be paid to a foreign fire insurance board by a corporation, company, or association that is not incorporated under the laws of the State and which is engaged in effecting fire insurance in the municipality or fire protection district shall be 2% of the gross receipts received from fire insurance upon property situated within the municipality or district (rather than a sum not exceeding 2%). Allows a foreign fire insurance board aggrieved by a violation relating to foreign fire insurance board fees to file suit. Provides that a department foreign fire insurance board may: (i) establish, manage, and maintain an account for the holding and expenditure of all funds paid to the board; (ii) contract for the purchase of goods and services; and (iii) sue all parties necessary to enforce its rights. Limits home rule powers. Makes other changes. Effective immediately.


LRB101 16888 AWJ 66287 b

FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2749LRB101 16888 AWJ 66287 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-10-1 and 11-10-2 as follows:
 
6    (65 ILCS 5/11-10-1)  (from Ch. 24, par. 11-10-1)
7    Sec. 11-10-1. (a) In each municipality or fire protection
8district, whether incorporated under a general or special law,
9which has a fire department established and maintained by
10municipal or fire protection district ordinances, every
11corporation, company, and association which is not
12incorporated under the laws of this state and which is engaged
13in effecting fire insurance in the municipality or fire
14protection district, shall pay to the foreign fire insurance
15board or to the secretary of the fire protection district for
16the maintenance, use, and benefit of the fire department
17thereof, a sum of not exceeding 2% of the gross receipts
18received from fire insurance upon property situated within the
19municipality or district.
20    Each municipality and fire protection district may
21prescribe by ordinance the rate of the tax or license fee to be
22paid, but this rate shall not exceed the rate specified in this
23section. Each designated corporation, company, and association

 

 

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1shall pay at the rate so prescribed by this subsection, upon
2the amount of all premiums which have been received during the
3year ending on every first day of July for all fire insurance
4effected or agreed to be effected on property situated within
5the municipality or fire protection district, by that
6corporation, company, or association respectively.
7    Every person who acts in any specified municipality or fire
8protection district as agent, or otherwise, on behalf of a
9designated corporation, company, or association, shall render
10to the treasurer of the foreign fire insurance board or
11secretary of the fire protection district, on or before the
12fifteenth day of July of each year, a full and true account,
13verified by his oath, of all of the premiums which, during the
14year ending on the first day of July preceding the report, were
15received by him, or by any other person for him on behalf of
16that corporation, company, or association. He shall specify in
17this report the amounts received for fire insurance, and he
18shall pay to the treasurer of the foreign fire insurance board,
19or to the secretary of the fire protection district, at the
20time of rendering this report, the amount as determined by the
21rate fixed by this subsection by the ordinance of the
22municipality or fire protection district for which his
23corporation, company, or association is accountable under this
24section and the ordinance.
25    If this account is not rendered on or before the fifteenth
26day of July of each year, or if the sum due remains unpaid

 

 

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1after that day, it shall be unlawful for any corporation,
2company, or association, so in default, to transact any
3business in the municipality or fire protection district until
4the sum due has been fully paid. But this provision shall not
5relieve any corporation, company, or association from the
6payment of any loss upon any risk that may be taken in
7violation of this requirement.
8    The amount of this tax or license fee may be recovered from
9the corporation, company, or association which owes it, or from
10its agent, by an action brought by a foreign fire insurance
11board in the name and for the use of the municipality or fire
12protection district as for money had and received.
13    The foreign fire insurance board municipal comptroller, if
14any, and if not, then the municipal clerk or the secretary of
15the fire protection district, or their designee, may examine
16the books, records, and other papers and documents of a
17designated agent, corporation, company, or association for the
18purpose of verifying the correctness of the report of the
19amounts received for fire insurance.
20    This subsection section shall not be applicable to receipts
21from contracts of marine insurance, even though they include
22insurance against fire, where the premium for the fire
23insurance is not separately specified.
24    (b) A foreign fire insurance board aggrieved by a violation
25of this Section may file suit in the Circuit Court in the
26county where the alleged violation occurred.

 

 

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1    (c) The regulation of foreign fire insurance boards and
2their taxes or license fees are exclusive powers and functions
3of the State. A home rule municipality may not regulate foreign
4fire insurance boards and their taxes or license fees. This
5Section is a denial and limitation of home rule powers and
6functions under subsection (h) of Section 6 of Article VII of
7the Illinois Constitution.
8(Source: P.A. 95-807, eff. 8-12-08.)
 
9    (65 ILCS 5/11-10-2)  (from Ch. 24, par. 11-10-2)
10    Sec. 11-10-2. (a) A department foreign fire insurance board
11shall be created by and among the sworn members of within the
12fire department of each municipality with fewer than 500,000
13inhabitants that has an organized fire department. The board
14shall consist of 7 trustees; the fire chief, who shall hold
15office by virtue of rank, and 6 members, who shall be elected
16at large by the sworn members of the department. If there is an
17insufficient number of candidates to fill all these positions,
18the number of board members may be reduced, but not to fewer
19than 3 trustees. All members of the department shall be
20eligible to be elected as officers of the department foreign
21fire insurance board. The members of this board shall annually
22elect officers. These officers shall be a chairman and a
23treasurer. The trustees of the department foreign fire
24insurance board shall make all needful rules and regulations
25with respect to the department foreign fire insurance board and

 

 

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1the management of the money to be paid appropriated to the
2board. The department foreign fire insurance board may
3establish, manage, and maintain an account for the holding and
4expenditure of all funds paid to the board. The department
5foreign fire insurance board may contract for the purchase of
6goods and services. The department foreign fire insurance board
7may sue all parties necessary to enforce its rights under this
8Section. The officers of the department foreign fire insurance
9board shall develop and maintain a listing of those items that
10the board feels are appropriate expenditures under this Act.
11The treasurer of the department foreign fire insurance board
12shall give a sufficient bond to the municipality in which the
13fire department is organized. This bond shall be approved by
14the mayor or president, as the case may be, conditioned upon
15the faithful performance by the treasurer of his or her duties
16under the ordinance and the rules and regulations provided for
17in this section. The treasurer of the department foreign fire
18insurance board shall receive the appropriated money and shall
19pay out the money upon the order of the department foreign fire
20insurance board for the maintenance, use, and benefit of the
21department. As part of the annual municipal audit, these funds
22shall be audited to verify that the funds have been expended by
23that board only for the maintenance, use, and benefit of the
24department.
25    (b) As used in this subsection, "active member" means a
26member of the Chicago Fire Department who is not receiving a

 

 

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1disability pension, retired, or a deferred pensioner of the
2Firemen's Annuity and Benefit Fund of Chicago.
3    A department foreign fire insurance board is created within
4the Chicago Fire Department. The board shall consist of 7
5trustees who shall be initially elected on or before January 1,
62019: the fire commissioner, who shall hold office by virtue of
7rank, and 6 elected trustees, who shall be elected at large by
8the sworn members of the department. If there is an
9insufficient number of candidates seeking election to each
10vacant trustee position, the number of board members is reduced
11to 5 trustees, including the fire commissioner of the
12department, until the next election cycle when there are enough
13active members seeking election to fill all 7 member seats. All
14active members are eligible to be elected as trustees of the
15department foreign fire insurance board. Of the trustees first
16elected, 3 trustees shall be elected to a 2-year term and 3
17trustees shall be elected to a 3-year term. After the initial
18election, a trustee shall be elected for a term of 3 years. If
19a member of the board resigns, is removed, or is unable to
20continue serving on the board, the vacancy shall be filled by
21special election of the active members or, in the case of a
22vacancy that will exist for fewer than 180 days until the term
23expires, by appointment by majority vote of the members of the
24board.
25    The members of the board shall annually elect officers.
26These officers shall be a chairman, treasurer, and secretary.

 

 

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1The trustees of the board shall make rules and regulations with
2respect to the board and the management of the money
3appropriated to the board. The officers of the board shall
4develop and maintain a listing of those items that the board
5believes are appropriate expenditures under this subsection.
6The treasurer of the board shall give a sufficient bond to the
7City of Chicago. The cost of the bond shall be paid out of the
8moneys in the board's fund. The bond shall be conditioned upon
9the faithful performance by the treasurer of his or her duties
10under the rules and regulations provided for in this
11subsection. The treasurer of the board shall receive the
12appropriated proceeds and shall disburse the proceeds upon the
13order of the board for the maintenance, use, and benefit of the
14department consistent with this subsection. As part of the
15annual municipal audit, these funds shall be audited to verify
16that the funds have been expended lawfully by the board
17consistent with this subsection.
18    Within 30 days after receipt of any foreign fire insurance
19proceeds by the City of Chicago, the City of Chicago shall
20transfer the proceeds to the board by depositing the proceeds
21into an account determined by the board, except that if the
22effective date of this amendatory Act of the 100th General
23Assembly is after July 31, 2018, then the City of Chicago
24shall, for budget year 2019 only, transfer only 50% of the
25proceeds to the board. Notwithstanding any other provision of
26law: 50% of the foreign fire insurance proceeds received by the

 

 

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1board shall be used for the maintenance, use, benefit, or
2enhancement of fire stations or training facilities used by the
3active members of the fire department; 25% of the foreign fire
4insurance proceeds received by the board shall be used for the
5maintenance, use, benefit, or enhancement of emergency
6response vehicles, tools, and equipment used by the active
7members of the department; and 25% of the foreign fire
8insurance proceeds received by the board shall be used for the
9maintenance and enhancement of the department and for the use
10and benefit of the active members of the department in a manner
11otherwise consistent with this subsection. Foreign fire
12insurance proceeds may not be used to purchase, maintain, or
13enhance personal property of a member of the department, except
14for personal property used in the performance of his or her
15duties or training activities.
16    (c) The provisions of this Section shall be the exclusive
17power of the State, pursuant to subsection (h) of Section 6 of
18Article VII of the Constitution.
19(Source: P.A. 100-656, eff. 7-31-18.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.