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| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB2749 Introduced 2/4/2020, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
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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 |
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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.
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| | FISCAL NOTE ACT MAY APPLY | | HOME RULE NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | SB2749 | | LRB101 16888 AWJ 66287 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 Illinois Municipal Code is amended by |
5 | | changing Sections 11-10-1 and 11-10-2 as follows:
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6 | | (65 ILCS 5/11-10-1) (from Ch. 24, par. 11-10-1)
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7 | | Sec. 11-10-1. (a) In each municipality or fire protection |
8 | | district, whether
incorporated under a general or special law, |
9 | | which has a fire department
established and maintained by |
10 | | municipal or fire protection district
ordinances, every |
11 | | corporation, company, and association which is not
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12 | | incorporated under the laws of this state and which is engaged |
13 | | in effecting
fire insurance in the municipality or fire |
14 | | protection district, shall pay
to the foreign fire insurance |
15 | | board or to the secretary of the fire
protection district for |
16 | | the maintenance, use, and benefit of the fire
department |
17 | | thereof, a sum of not exceeding 2% of the gross receipts |
18 | | received
from fire insurance upon property situated within the |
19 | | municipality or
district.
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20 | | Each municipality and fire protection district may |
21 | | prescribe by
ordinance the rate of the tax or license fee to be |
22 | | paid, but this rate
shall not exceed the rate specified in this |
23 | | section. Each designated
corporation, company, and association |
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| | SB2749 | - 2 - | LRB101 16888 AWJ 66287 b |
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1 | | shall pay at the rate so prescribed by this subsection ,
upon |
2 | | the amount of all premiums which have been received during the |
3 | | year
ending on every first day of July for all fire insurance |
4 | | effected or agreed
to be effected on property situated within |
5 | | the municipality or fire
protection district, by that |
6 | | corporation, company, or association
respectively.
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7 | | Every person who acts in any specified municipality or fire |
8 | | protection
district as agent, or otherwise, on behalf of a |
9 | | designated corporation,
company, or association, shall render |
10 | | to the treasurer of the foreign fire insurance board or |
11 | | secretary of the fire
protection district, on or before the |
12 | | fifteenth day of July of each year, a
full and true account, |
13 | | verified by his oath, of all of the premiums which,
during the |
14 | | year ending on the first day of July preceding the report, were
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15 | | received by him, or by any other person for him on behalf of |
16 | | that
corporation, company, or association. He shall specify in |
17 | | this report the
amounts received for fire insurance, and he |
18 | | shall pay to the treasurer of
the foreign fire insurance board, |
19 | | or to the secretary of the fire protection district, at
the |
20 | | time of rendering this report, the amount as determined by the |
21 | | rate
fixed by this subsection by the ordinance of the |
22 | | municipality or fire protection district for
which his |
23 | | corporation, company, or association is accountable under this
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24 | | section and the ordinance .
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25 | | If this account is not rendered on or before the fifteenth |
26 | | day of July
of each year, or if the sum due remains unpaid |
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| | SB2749 | - 3 - | LRB101 16888 AWJ 66287 b |
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1 | | after that day, it shall be
unlawful for any corporation, |
2 | | company, or association, so in default, to
transact any |
3 | | business in the municipality or fire protection district until
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4 | | the sum due has been fully paid. But this provision shall not |
5 | | relieve any
corporation, company, or association from the |
6 | | payment of any loss upon any
risk that may be taken in |
7 | | violation of this requirement.
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8 | | The amount of this tax or license fee may be recovered from |
9 | | the
corporation, company, or association which owes it, or from |
10 | | its agent, by
an action brought by a foreign fire insurance |
11 | | board in the name and for the use of the municipality or fire
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12 | | protection district as for money had and received .
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13 | | The foreign fire insurance board municipal comptroller, if |
14 | | any, and if not, then the municipal clerk
or the secretary of |
15 | | the fire protection district, or their designee, may examine |
16 | | the books,
records, and other papers and documents of a |
17 | | designated agent, corporation,
company, or association for the |
18 | | purpose of verifying the correctness of the
report of the |
19 | | amounts received for fire insurance.
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20 | | This subsection section shall not be applicable to receipts |
21 | | from contracts of
marine insurance, even though they include |
22 | | insurance against fire, where
the premium for the fire |
23 | | insurance is not separately specified. |
24 | | (b) A foreign fire insurance board aggrieved by a violation |
25 | | of this Section may file suit in the Circuit Court in the |
26 | | county where the alleged violation occurred. |
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1 | | (c) The regulation of foreign fire insurance boards and |
2 | | their taxes or license fees are exclusive powers and functions |
3 | | of the State. A home rule municipality may not regulate foreign |
4 | | fire insurance boards and their taxes or license fees. This |
5 | | Section is a denial and limitation of home rule powers and |
6 | | functions under subsection (h) of Section 6 of Article VII of |
7 | | the Illinois Constitution.
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8 | | (Source: P.A. 95-807, eff. 8-12-08.)
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9 | | (65 ILCS 5/11-10-2) (from Ch. 24, par. 11-10-2)
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10 | | Sec. 11-10-2. (a) A department foreign fire insurance board |
11 | | shall be created by and among the sworn members of within the |
12 | | fire department of each municipality with fewer than 500,000 |
13 | | inhabitants that has an organized fire department. The board |
14 | | shall consist of 7 trustees; the fire chief, who shall hold |
15 | | office by virtue of rank, and 6 members, who shall be elected |
16 | | at large by the sworn members of the department. If there is an |
17 | | insufficient number of candidates to fill all these positions, |
18 | | the number of board members may be reduced, but not to fewer |
19 | | than 3 trustees. All members of the department shall be |
20 | | eligible to be elected as
officers of the department foreign |
21 | | fire insurance board. The members of this board shall annually |
22 | | elect officers. These officers
shall be a chairman and a |
23 | | treasurer. The trustees of the department foreign fire |
24 | | insurance board shall make all needful rules and
regulations |
25 | | with respect to the department foreign fire insurance board and
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| | SB2749 | - 5 - | LRB101 16888 AWJ 66287 b |
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1 | | the management of the money to be paid appropriated to the |
2 | | board. The department foreign fire insurance board may |
3 | | establish, manage, and maintain an account for the holding and |
4 | | expenditure of all funds paid to the board. The department |
5 | | foreign fire insurance board may contract for the purchase of |
6 | | goods and services. The department foreign fire insurance board |
7 | | may sue all parties necessary to enforce its rights under this |
8 | | Section. The officers of the department foreign fire insurance |
9 | | board
shall develop and maintain a listing of those items that |
10 | | the board feels are
appropriate
expenditures under this Act. |
11 | | The treasurer of the department foreign
fire insurance board |
12 | | shall give a sufficient bond to the municipality
in which the |
13 | | fire department is organized. This bond shall be approved by
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14 | | the mayor or president, as the case may be, conditioned upon |
15 | | the faithful
performance by the treasurer of his or her duties |
16 | | under the ordinance and
the rules and regulations provided for |
17 | | in this section. The treasurer
of the department foreign fire |
18 | | insurance board shall receive the
appropriated money and shall |
19 | | pay out the money upon the
order of the department foreign fire |
20 | | insurance board for the
maintenance, use, and benefit of the |
21 | | department.
As part of the annual municipal audit, these funds |
22 | | shall be audited to verify
that the funds have been expended by |
23 | | that board only for the maintenance, use, and benefit of the
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24 | | department.
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25 | | (b) As used in this subsection, "active member" means a |
26 | | member of the Chicago Fire Department who is not receiving a |
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1 | | disability pension, retired, or a deferred pensioner of the |
2 | | Firemen's Annuity and Benefit Fund of Chicago. |
3 | | A department foreign fire insurance board is created within |
4 | | the Chicago Fire Department. The board shall consist of 7 |
5 | | trustees who shall be initially elected on or before January 1, |
6 | | 2019: the fire commissioner, who shall hold office by virtue of |
7 | | rank, and 6 elected trustees, who shall be elected at large by |
8 | | the sworn members of the department. If there is an |
9 | | insufficient number of candidates seeking election to each |
10 | | vacant trustee position, the number of board members is reduced |
11 | | to 5 trustees, including the fire commissioner of the |
12 | | department, until the next election cycle when there are enough |
13 | | active members seeking election to fill all 7 member seats. All |
14 | | active members are eligible to be elected as trustees of the |
15 | | department foreign fire insurance board. Of the trustees first |
16 | | elected, 3 trustees shall be elected to a 2-year term and 3 |
17 | | trustees shall be elected to a 3-year term. After the initial |
18 | | election, a trustee shall be elected for a term of 3 years. If |
19 | | a member of the board resigns, is removed, or is unable to |
20 | | continue serving on the board, the vacancy shall be filled by |
21 | | special election of the active members or, in the case of a |
22 | | vacancy that will exist for fewer than 180 days until the term |
23 | | expires, by appointment by majority vote of the members of the |
24 | | board. |
25 | | The members of the board shall annually elect officers. |
26 | | These officers shall be a chairman, treasurer, and secretary. |
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1 | | The trustees of the board shall make rules and regulations with |
2 | | respect to the board and the management of the money |
3 | | appropriated to the board. The officers of the board shall |
4 | | develop and maintain a listing of those items that the board |
5 | | believes are appropriate expenditures under this subsection. |
6 | | The treasurer of the board shall give a sufficient bond to the |
7 | | City of Chicago. The cost of the bond shall be paid out of the |
8 | | moneys in the board's fund. The bond shall be conditioned upon |
9 | | the faithful performance by the treasurer of his or her duties |
10 | | under the rules and regulations provided for in this |
11 | | subsection. The treasurer of the board shall receive the |
12 | | appropriated proceeds and shall disburse the proceeds upon the |
13 | | order of the board for the maintenance, use, and benefit of the |
14 | | department consistent with this subsection. As part of the |
15 | | annual municipal audit, these funds shall be audited to verify |
16 | | that the funds have been expended lawfully by the board |
17 | | consistent with this subsection. |
18 | | Within 30 days after receipt of any foreign fire insurance |
19 | | proceeds by the City of Chicago, the City of Chicago shall |
20 | | transfer the proceeds to the board by depositing the proceeds |
21 | | into an account determined by the board, except that if the |
22 | | effective date of this amendatory Act of the 100th General |
23 | | Assembly is after July 31, 2018, then the City of Chicago |
24 | | shall, for budget year 2019 only, transfer only 50% of the |
25 | | proceeds to the board. Notwithstanding any other provision of |
26 | | law: 50% of the foreign fire insurance proceeds received by the |
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1 | | board shall be used for the maintenance, use, benefit, or |
2 | | enhancement of fire stations or training facilities used by the |
3 | | active members of the fire department; 25% of the foreign fire |
4 | | insurance proceeds received by the board shall be used for the |
5 | | maintenance, use, benefit, or enhancement of emergency |
6 | | response vehicles, tools, and equipment used by the active |
7 | | members of the department; and 25% of the foreign fire |
8 | | insurance proceeds received by the board shall be used for the |
9 | | maintenance and enhancement of the department and for the use |
10 | | and benefit of the active members of the department in a manner |
11 | | otherwise consistent with this subsection. Foreign fire |
12 | | insurance proceeds may not be used to purchase, maintain, or |
13 | | enhance personal property of a member of the department, except |
14 | | for personal property used in the performance of his or her |
15 | | duties or training activities. |
16 | | (c) The provisions of this Section shall be the exclusive |
17 | | power of the
State, pursuant to subsection (h) of Section 6 of |
18 | | Article VII of the
Constitution.
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19 | | (Source: P.A. 100-656, eff. 7-31-18.)
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20 | | Section 99. Effective date. This Act takes effect upon |
21 | | becoming law.
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