HB3251 98TH GENERAL ASSEMBLY

LRB098 10963 OMW 41581 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3251

Introduced , by Rep. Jack D. Franks

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

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. Permits the question of dissolution of a unit of local government to be proposed to the voters of the county either by resolution of the county board or by petition by the voters. Provides that the referendum shall designate the county department or officer, or both, that shall assume the powers, duties, assets, records, property, liabilities, obligations, and responsibilities 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.

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, and 5-44045 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, as they are provided by other units of local government;

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

(e) Units of local government 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; and

(g) The lack of a streamlined method to consolidate government functions and to 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 and prevents the expenditure of limited public funds for critical programs and services.

Therefore, the General Assembly deems it advisable and in the best interests of the residents of Illinois that county boards exercise supplemental authority regarding the dissolution of local units of government and the consolidation of governmental functions.

(55 ILCS 5/5-44010 new)

Sec. 5-44010. Applicability. The powers and authorities provided by this Division 5-44 apply to all counties in this State.

(55 ILCS 5/5-44015 new)

Sec. 5-44015. Powers; supplemental. The Sections of this Division 5-44 are intended to be supplemental and in addition to all other powers and authorities granted to any county board, shall be construed liberally, and shall not be construed as a limitation of any power or authority otherwise granted.

(55 ILCS 5/5-44020 new)

Sec. 5-44020. Definitions. In this Division 5-44:

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

"Unit of local government" or "unit" means any special district or unit of local government, as defined by Article VII, Section 1 of the Illinois Constitution excluding a county, township, or municipality, located entirely within one county, 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. Dissolution of units of local government.

(a) Dissolution by county board.

(1) Proposal of dissolution. A county board may, by resolution, propose the dissolution of any unit of local government. The resolution shall be adopted 180 days prior to the next general election, detail the purpose and cost savings to be achieved by such dissolution, and be published in a newspaper of general circulation served by the unit of local government and on the county's website, if applicable.

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

(2) Dissolution; referendum. Following the return of the audit report described in subsection (a) of this Section, the county board may, by ordinance, propose the dissolution of the unit of local government to the electors of the county at a general election or consolidated election in accordance with general election law. The ordinance shall designate the county department or officer, or both, that shall assume the powers, duties, assets, property, liabilities, obligations, and responsibilities of the dissolved unit including, but not limited to: (1) assuming all taxing authority of the unit; (2) distributing existing revenue of the unit; (3) closing up all unfinished business of the unit; and (4) selling and disposing of any of the property belonging to the unit, as fully as might have been done by the unit itself, for the benefit of the inhabitants of the county.

The proposition shall be in substantially the following form:

Shall the [unit of local government] be discontinued in [name of county] and all duties, assets, property, liabilities, obligations, and responsibilities of [unit of local government] be assumed by [county department or officer, or both]?

The votes shall be recorded as "Yes" or "No".

If it appears by the returns of the election that a majority of the votes of the county cast on the question of the dissolution of the unit of local government at the election are in favor of the proposed dissolution, then that unit of local government shall cease in the county 75 days following the date of the election that the proposition was approved by the electors. Upon discontinuance of the unit of local government, all powers, duties, assets, records, property, liabilities, obligations, and responsibilities of the unit shall be assumed by the proposed county department or officer, or both.

Upon the dissolution of a unit of local government, the records of the unit shall be deposited in the county clerk's office.

(b) Dissolution by petition. Upon the petition of at least 500 persons, or 2% of the registered voters of a county, whichever is greater, as determined on the date registration closed before the regular election next preceding the last day on which the petition may be filed, the county board shall certify and cause to be submitted to the voters of the county at the next general election the question of the dissolution of the unit of local government. The county board shall certify the question no later than 150 days prior to the next general election.

A signature on a petition shall not be valid or counted in considering the petition unless the form requirements are complied with and the date of each signature is less than 90 days before the last day for filing the petition. The statement of the person who circulates the petition must include an attestation (i) indicating the dates on which that sheet was circulated, (ii) indicating the first and last date on which that sheet was circulated, or (iii) certifying that none of the signatures on the sheet was signed more than 90 days before the last day for filing the petition. The petition shall include the unit of local government to be dissolved and the unit of local government that shall assume the powers, duties, assets, property, liabilities, obligations, and responsibilities of the dissolved unit including, but not limited to: (1) assuming all taxing authority of the unit; (2) distributing existing revenue of the unit; (3) closing up all unfinished business of the unit; and (4) selling and disposing of any of the property belonging to the unit, as fully as might have been done by the unit itself, for the benefit of the inhabitants of the municipality. The petition must be filed at least 180 days prior to the next general election.

Objections to the petition shall be filed within 10 days of filing the petition and shall be heard by the county electoral board.

The proposition shall be substantially in the form:

Shall the [unit of local government] be discontinued in [name of county] and all duties, assets, property, liabilities, obligations, and responsibilities of [unit of local government] be assumed by [county department or officer, or both]?

The votes shall be recorded as "Yes" or "No".

If it appears by the returns of the election that a majority of the votes of the county cast on the question of the dissolution of the unit of local government at the election are in favor of the proposed dissolution, then that unit of local government shall cease in the county 75 days following the date of the election that the proposition was approved by the electors. Upon discontinuance of the unit of local government, all powers, duties, assets, records, property, liabilities, obligations, and responsibilities of the unit shall be assumed by the proposed county department or officer, or both.

(55 ILCS 5/5-44030 new)

Sec. 5-44030. Outstanding indebtedness.

(a) In case any unit dissolved pursuant to this Division has bonds or notes outstanding that are a lien on funds available in the treasury at the time of consolidation, such lien shall be unimpaired by such dissolution and the lien shall continue in favor of the bond or note holders. The funds available subject to such a lien shall be set apart and held for the purpose of retiring such 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 such unit or otherwise available and not committed shall, to the extent necessary, be applied to the payment of such 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 such taxation upon the discharge of all outstanding obligations.

(55 ILCS 5/5-44035 new)

Sec. 5-44035. 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, determine whether to continue any existing tax levy of the unit of government dissolved under this Division by a vote of the majority of the members of the county board.

(55 ILCS 5/5-44040 new)

Sec. 5-44040. Tax collection and enforcement. The dissolution of a unit of government pursuant to this Division shall not adversely affect proceedings for the collection or enforcement of any tax. Those proceedings shall continue 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 such taxes may be instituted and carried on in the name of the unit.

(55 ILCS 5/5-44045 new)

Sec. 5-44045. 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.