093_SB1382enr

 
SB1382 Enrolled                      LRB093 04039 MKM 04078 b

 1        AN ACT in relation to municipalities.

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

 4        Section  5.   The Official Bond Payment Act is amended by
 5    changing Section 1 as follows:

 6        (5 ILCS 270/1) (from Ch. 103, par. 16)
 7        Sec. 1.  The State or any county, township, municipality,
 8    or public board or body, whether organized under  general  or
 9    special  Act,  shall  pay  out  of  its funds the cost of any
10    official bond furnished by any officer of the State,  county,
11    township,  municipality,  or public board or body required by
12    its laws, rules, or regulations to execute the  bond  if  the
13    officer furnishes the bond with a surety company or companies
14    authorized  to  do  business  in this State under the laws of
15    this State and, if the surety on any  official  bond  is  not
16    such  a  surety  company  or  companies,  the  State, county,
17    township, municipality, or public board or body shall pay out
18    of its funds the cost of any bond or bonds  indemnifying  the
19    surety  against  liability  on  the  official bond. The total
20    amount of the indemnity,  however,  must  correspond  to  the
21    total  obligation of the surety on the official bond, and the
22    indemnitor or indemnitors must  be  a  company  or  companies
23    authorized   by  the  laws  of  this  State  to  execute  the
24    indemnifying bond or bonds.  A county  that  has  elected  to
25    self-insure under Section 9-103 of the Local Governmental and
26    Governmental  Employees  Tort  Immunity Act may also elect to
27    self-insure with respect to official bonds and  shall,  thus,
28    satisfy  the requirements of this Section. A township located
29    in a county with the township form of government and  a  road
30    district  comprised of that township may jointly obtain, from
31    a risk management  pool  of  townships,  any  official  bonds
 
SB1382 Enrolled             -2-      LRB093 04039 MKM 04078 b
 1    required  by  law to be furnished by officers of the township
 2    or road district. A road district located in a county without
 3    the township form of  government  may  obtain,  from  a  risk
 4    management pool of townships and road districts, any official
 5    bonds required by law to be furnished by officers of the road
 6    district.   A municipality may obtain, from a risk management
 7    pool of municipalities, any official bonds required by law to
 8    be furnished by officers of the municipality.
 9    (Source: P.A. 87-738; 88-360.)

10        Section 99. Effective date.  This  Act  takes  effect  on
11    January 1, 2004.