HB5278 103RD GENERAL ASSEMBLY

LRB103 35040 LNS 64977 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5278

Introduced 2/9/2024, by Rep. William "Will" Davis

SYNOPSIS AS INTRODUCED:

745 ILCS 10/9-104	from Ch. 85, par. 9-104
745 ILCS 10/9-106	from Ch. 85, par. 9-106

Amends the Local Governmental and Governmental Employees Tort Immunity Act. Provides that if a local public entity does not pay a court order or administrative agency order requiring payment to a local entity during the fiscal year it becomes final, or cannot pay a judgment, court order, or administrative agency order due to the overall revenue of the local public entity and the overall volume of operating expenses and debts, and if the payment of the judgment, court order, settlement agreement, or administrative agency order creates an unreasonable financial hardship for the local public entity, it shall pay the balance of the judgment, court order, settlement agreement, or administrative agency order in installments. Provides that a local public entity shall have the power of judicial relief to restructure the settlement agreement if the payment of the settlement agreement creates an unreasonable hardship for the local public entity. Provides that a local public entity that derives revenue for its maintenance and operation from rates and charges made for services or facilities it provides shall make rates and charges in an amount sufficient to pay all its tort judgments and settlements under the Payment of Claims and Judgment Article of the Act and its obligations under the Workers' Compensation Act, the Workers' Occupational Diseases Act, and the Unemployment Insurance Act, to the extent possible.

A BILL FOR

AN ACT concerning civil law.

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

Section 5. The Local Governmental and Governmental Employees Tort Immunity Act is amended by changing Sections 9-104 and 9-106 as follows:

(745 ILCS 10/9-104) (from Ch. 85, par. 9-104)

Sec. 9-104. Nonpayment of judgments, orders, or agreements; installment payments.

(a) Subject to subsection (b) of this Section, if a local public entity does not pay a tort judgment, other court order, or administrative agency order requiring a payment to a local entity during the fiscal year in which it becomes final, or cannot pay a judgment, court order, or administrative agency order under the terms ordered due to the overall revenue of the local public entity and the overall volume of operating expenses and debts, and if, in the opinion of its governing body, the payment of the judgment, court order, settlement agreement, or administrative agency order creates an unreasonable financial hardship for the local public entity, it shall pay the balance of the judgment, court order, settlement agreement, or administrative agency order, with interest thereon, in installments.

(b) The court which enters judgment shall order that the governing body pay the judgment, with interest thereon, in not exceeding 10 annual installments if both of the following conditions are satisfied:

(1) The governing body of the local public entity has adopted an ordinance or resolution finding that an unreasonable hardship will result unless the judgment is paid in installments.

(2) The court, after hearing, has found that payment of the judgment in installments as ordered by the court is necessary to avoid an unreasonable hardship.

(c) Each installment payment shall be of an equal portion of the principal of the judgment except that where a judgment is $500,000 or more the court may, upon a showing by the plaintiff of an extraordinary need for immediate funds in order to secure medical necessities immediately after judgment, including, but not limited to, equipment, supplies, medication, residence, or other items, order that unequal payments of the principal of the judgment be made in proportions to be determined by the court, but in no event shall any increase in a payment cause such payment to be greater than 50% of the judgment. The local public entity, in its discretion, may prepay any one or more installments or any part of an installment.

(d) A local public entity shall have the power to enter into a settlement agreement subject to a term not to exceed the period of years negotiated by the parties and shall have the power of judicial relief to restructure the settlement agreement if, in the opinion of the public body, the payment of the settlement agreement creates an unreasonable hardship for the local public entity.

(Source: P.A. 84-1431.)

(745 ILCS 10/9-106) (from Ch. 85, par. 9-106)

Sec. 9-106. Use of rates and charges to pay judgments and settlements. A local public entity that derives revenue for its maintenance and operation from rates and charges made for services or facilities it provides shall in each fiscal year make rates and charges or both, or otherwise provide funds, in an amount sufficient to pay all its tort judgments and settlements in accordance with this Article and its obligations under the Workers' Compensation Act, the Workers' Occupational Diseases Act, and the Unemployment Insurance Act, to the extent possible.

(Source: P.A. 82-783.)