HB2481 98TH GENERAL ASSEMBLY

LRB098 10582 OMW 40844 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2481

Introduced , by Rep. Dennis M. Reboletti

SYNOPSIS AS INTRODUCED:

55 ILCS 5/Div. 5-44 heading new
55 ILCS 5/5-44005 new
55 ILCS 5/5-44010 new
55 ILCS 5/5-44015 new
55 ILCS 5/5-44020 new
55 ILCS 5/5-44025 new
55 ILCS 5/5-44030 new
55 ILCS 5/5-44035 new
55 ILCS 5/5-44040 new
55 ILCS 5/5-44045 new
55 ILCS 5/5-44050 new
55 ILCS 5/5-44055 new

Amends the Counties Code. Adds a Division addressing local government reduction and efficiency. Provides the General Assembly's findings regarding units of local government and possible inefficiencies. Provides that in certain counties, the county board may enact an ordinance proposing the dissolution of a unit of local government and, upon the effective date of that ordinance, the chairman of the county board shall issue an audit of the unit. Provides that following the return of this audit report, the county board may adopt an ordinance to dissolve the unit. Provides for a court-appointed trustee-in-dissolution that shall create and implement a plan for consolidation and dissolution of the unit of local government and exercise powers including, but not limited to, the powers and duties of the board of the dissolved unit of government, levying and rebating taxes, and entering into intergovernmental agreements to combine and transfer the functions of the dissolved unit. Further provides for any outstanding indebtedness of the unit, abatement of any tax levied by the unit, and pending litigation involving the unit. Effective immediately.

A BILL FOR

AN ACT concerning local government, which shall be known as the Government Reduction and Efficiency Law of 2013.

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

Section 5. The Counties Code is amended by adding the Division 5-44 to Article 5 and Sections 5-44005, 5-44010, 5-44015, 5-44020, 5-44025, 5-44030, 5-44035, 5-44040, 5-44045, 5-44050 and 5-44055 as follows:

(55 ILCS 5/Div. 5-44 heading new)

Division 5-44.

Local Government Reduction and Efficiency

(55 ILCS 5/5-44005 new)

Sec. 5-44005. Findings. The General Assembly finds:

(a) Illinois has more units of local government than any other state;

(b) The large number of units of local government results in the inefficient delivery of governmental services at a higher cost to taxpayers;

(c) In a number of cases, units of local government provide services that are duplicative in nature because they are provided by other units of local government;

(d) It is in the best interest of taxpayers that more efficient service delivery structures are established in order to replace units of local government that are not financially sustainable;

(e) Units of local government that are managed by appointed governing boards not directly accountable to the electorate can encourage a lack of oversight and complacency that is not in the best interest of taxpayers;

(f) Various provisions of Illinois law governing the dissolution of units of local government are inconsistent and outdated;

(g) The lack of a streamlined method to consolidate government functions and dissolve units of local government results in an unfair tax burden on the citizens of the State of Illinois residing in those units of local government than would otherwise be necessary and prevents the expenditure of limited public funds for critical programs and services;

(h) The General Assembly deems it advisable and in the best interests of the residents of Illinois that local governments exercise supplemental authority regarding the dissolution of units of local government and the consolidation of governmental functions.

(55 ILCS 5/5-44010 new)

Sec. 5-44010. Powers; supplemental. The provisions of this Division are intended to be supplemental and in addition to all other powers or authorities granted to any governmental unit, shall be construed liberally, and shall not be construed as a limitation of any power or authority otherwise granted.

(55 ILCS 5/5-44015 new)

Sec. 5-44015. Applicability. This Division applies only to counties with a population of more than 900,000 and less than 3,000,000 that are contiguous to a county with a population of more than 3,000,000 and units of local government within these counties.

(55 ILCS 5/5-44020 new)

Sec. 5-44020. Definitions. In this Division:

"Governing board" means the individual or individuals who constitute the corporate authorities of a unit of local government.

"Unit of local government" or "unit" means any unit of local government located entirely within one county, to which the county board chairman or county executive directly appoints a majority of the governing board or appoints a majority of its governing board with the advice and consent of the county board, but shall not include a fire protection district that directly employs more than 3 regular full-time employees.

(55 ILCS 5/5-44025 new)

Sec. 5-44025. Authority of a county board to dissolve units of local government.

(a) A county board may by ordinance propose the dissolution of any unit of local government as defined under Section 5-44020 of this Division. The ordinance shall detail the purpose and cost savings to be achieved by the dissolution and shall be published in a newspaper of general circulation in the area served by the unit of local government and on the county's website, if it has one.

(b) Upon the effective date of an ordinance enacted pursuant to subsection (a) of this Section, the chairman of the county board shall cause an audit of (1) all claims against the unit, (2) all receipts of the unit, (3) the inventory of all real and personal property owned by the unit or under its control or management, (4) any debts owed by the unit, and (5) may, in his or her discretion, undertake any other audit or financial review of the affairs of the unit. The person or entity conducting the audit shall report its findings to the county board and to the chairman of the county board within 30 days.

(c) Following the return of the audit report required by subsection (b) of this Section, the county board may adopt an ordinance dissolving the unit 120 days following the effective date of the ordinance. Upon adoption of the ordinance, but prior to its effective date, the chairman of the county board shall petition the circuit court for an order designating a trustee-in-dissolution for the unit, immediately terminating the terms of the members of the governing board of the unit of local government on the effective date of the ordinance, and providing for the compensation of the trustee, which shall be paid from the corporate funds of the unit.

(d) Upon the effective date of an ordinance enacted under subsection (c) of this Section, and notwithstanding any other provision of law, the State's attorney, or his or her designee, shall become the exclusive legal representative of the dissolving unit of local government. The county treasurer shall become the treasurer of the unit of local government and the county clerk shall become the secretary of the unit of local government.

(55 ILCS 5/5-44030 new)

Sec. 5-44030. Powers and duties of the trustee-in-dissolution. The trustee-in-dissolution shall have the following powers and duties:

(a) To execute all of the powers and duties of the previous board;

(b) To levy and rebate taxes, subject to the approval of the county board, for the purpose of paying the debts, obligations, and liabilities of the unit that are outstanding on the date of the dissolution and the necessary expenses of closing up the affairs of the district if these funds are not available from the unit of local government's general fund;

(c) To present, within 14 days of his or her appointment, a plan for the consolidation and dissolution of the unit of local government to the county board for its approval. The plan shall identify what functions, if any, of the unit of local government shall be undertaken by the county upon dissolution and whether any taxes previously levied for the provision of these functions shall be maintained;

(d) To enter into an intergovernmental agreement with one or more governmental entities to utilize existing resources including, but not limited to, labor, materials, and property, as may be needed to carry out the foregoing duties;

(e) To enter into an intergovernmental agreement with the county to combine or transfer any of the powers, privileges, functions, or authority of the unit of local government to the county as may be required to facilitate the transition; and

(f) To sell the property of the unit and, in case any excess remains after all liabilities of the unit are paid, the excess shall be transferred to a special fund created and maintained by the county treasurer to be expended solely to defer the costs incurred by the county in performing the duties of the unit, subject to the requirements of Section 5-44035 of this Division. Nothing in this Section shall prohibit the county from acquiring any or all real or personal property of the district.

(55 ILCS 5/5-44035 new)

Sec. 5-44035. Outstanding indebtedness.

(a) In case any unit dissolved pursuant to this Division has bonds or notes outstanding that are a lien on funds on hand in the treasury at the time of consolidation, the lien shall be unimpaired by the dissolution and shall continue in favor of the bond or note holders. The funds on hand subject to a lien shall be set apart and held for the purpose of retiring the secured debt, and no such funds shall be transferred into the general funds of the county.

(b) In case any unit dissolved pursuant to this Division has unsecured debts outstanding at the time of dissolution, any funds in the treasury of the unit or otherwise available and not committed shall, to the extent necessary, be applied to the payment of these debts.

(c) All property in the territory served by the dissolved unit of government shall be subject to taxation to pay the debts, bonds, and obligations of the consolidated district. The county board shall abate this taxation upon the discharge of all outstanding obligations.

(55 ILCS 5/5-44040 new)

Sec. 5-44040. Effect of dissolution. Immediately upon the dissolution of a unit of local government pursuant to this Division:

(a) Notwithstanding the provisions of the Special Service Area Tax Law that pertain the establishment of special service areas, all or part of the territory formerly served by the unit of local government may be established as a special service area or areas of the county if the county board determines that this designation is necessary for it to provide services. If the boundaries of a special service area created under Section 5-44035 of this Division include territory within a municipality, the corporate authorities of that municipality may, with the consent of the county, assume responsibility for the special service area and become its governing body.

(b) In addition to any other powers provided by law, the governing body of a special service area created pursuant to Section 5-44035 of this Division shall assume and is authorized to exercise all the powers and duties of the unit with respect to the special service area. The governing body is also authorized to continue to levy any tax previously imposed by the unit of local government within the special service area.

(c) Subsequent increases of the current tax levy within the special service area or areas shall be made in accordance with the provisions of the Special Service Area Tax Law.

(55 ILCS 5/5-44045 new)

Sec. 5-44045. Abatement of levy. Whenever a county has dissolved a unit of local government pursuant to this Division, it shall, within 6 months of the effective date of the dissolution and every year thereafter, evaluate the need to continue any existing tax levy until the county board abates the levy in the manner proscribed by the Special Service Area Law.

(55 ILCS 5/5-44050 new)

Sec. 5-44050. Tax collection. The dissolution of a unit of government pursuant to this Division shall not adversely affect proceedings for the collection or enforcement of any tax and shall proceed to finality as though no dissolution had taken place. The proceeds thereof shall be paid over to the treasurer of the county to be used for the purpose for which the tax was levied or assessed. Proceedings to collect and enforce these taxes may be instituted and carried on in the name of the unit.

(55 ILCS 5/5-44055 new)

Sec. 5-44055. Litigation. All suits pending in any court on behalf of or against any unit dissolved pursuant to this Division may be prosecuted or defended in the name of the county by the State's attorney. All judgments obtained for any unit dissolved shall be collected and enforced by the county for its benefit.

Section 99. Effective date. This Act takes effect upon becoming law.