102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1571

 

Introduced 2/26/2021, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
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

    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.


LRB102 12624 AWJ 17963 b

FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1571LRB102 12624 AWJ 17963 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-10-1 and 11-10-2 as follows:
 
6    (65 ILCS 5/11-10-1)  (from Ch. 24, par. 11-10-1)
7    Sec. 11-10-1. (a) In each municipality or fire protection
8district, whether incorporated under a general or special law,
9which has a fire department established and maintained by
10municipal or fire protection district ordinances, every
11corporation, company, and association which is not
12incorporated under the laws of this state and which is engaged
13in effecting fire insurance in the municipality or fire
14protection district, shall pay to the foreign fire insurance
15board or to the secretary of the fire protection district for
16the maintenance, use, and benefit of the fire department
17thereof, a sum of not exceeding 2% of the gross receipts
18received from fire insurance upon property situated within the
19municipality or district.
20    Each municipality and fire protection district may
21prescribe by ordinance the rate of the tax or license fee to be
22paid, but this rate shall not exceed the rate specified in this
23section. Each designated corporation, company, and association

 

 

SB1571- 2 -LRB102 12624 AWJ 17963 b

1shall pay at the rate so prescribed by this subsection, upon
2the amount of all premiums which have been received during the
3year ending on every first day of July for all fire insurance
4effected or agreed to be effected on property situated within
5the municipality or fire protection district, by that
6corporation, company, or association respectively.
7    Every person who acts in any specified municipality or
8fire protection district as agent, or otherwise, on behalf of
9a designated corporation, company, or association, shall
10render to the treasurer of the foreign fire insurance board or
11secretary of the fire protection district, on or before the
12fifteenth day of July of each year, a full and true account,
13verified by his oath, of all of the premiums which, during the
14year ending on the first day of July preceding the report, were
15received by him, or by any other person for him on behalf of
16that corporation, company, or association. He shall specify in
17this report the amounts received for fire insurance, and he
18shall pay to the treasurer of the foreign fire insurance
19board, or to the secretary of the fire protection district, at
20the time of rendering this report, the amount as determined by
21the rate fixed by this subsection by the ordinance of the
22municipality or fire protection district for which his
23corporation, company, or association is accountable under this
24section and the ordinance.
25    If this account is not rendered on or before the fifteenth
26day of July of each year, or if the sum due remains unpaid

 

 

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1after that day, it shall be unlawful for any corporation,
2company, or association, so in default, to transact any
3business in the municipality or fire protection district until
4the sum due has been fully paid. But this provision shall not
5relieve any corporation, company, or association from the
6payment of any loss upon any risk that may be taken in
7violation of this requirement.
8    The amount of this tax or license fee may be recovered from
9the corporation, company, or association which owes it, or
10from its agent, by an action brought by a foreign fire
11insurance board in the name and for the use of the municipality
12or fire protection district as for money had and received.
13    The foreign fire insurance board municipal comptroller, if
14any, and if not, then the municipal clerk or the secretary of
15the fire protection district, or their designee, may examine
16the books, records, and other papers and documents of a
17designated agent, corporation, company, or association for the
18purpose of verifying the correctness of the report of the
19amounts received for fire insurance.
20    This subsection section shall not be applicable to
21receipts from contracts of marine insurance, even though they
22include insurance against fire, where the premium for the fire
23insurance is not separately specified.
24    (b) A foreign fire insurance board aggrieved by a
25violation of this Section may file suit in the Circuit Court in
26the county where the alleged violation occurred.

 

 

SB1571- 4 -LRB102 12624 AWJ 17963 b

1    (c) The regulation of foreign fire insurance boards and
2their taxes or license fees are exclusive powers and functions
3of the State. A home rule municipality may not regulate
4foreign fire insurance boards and their taxes or license fees.
5This Section is a denial and limitation of home rule powers and
6functions under subsection (h) of Section 6 of Article VII of
7the Illinois Constitution.
8(Source: P.A. 95-807, eff. 8-12-08.)
 
9    (65 ILCS 5/11-10-2)  (from Ch. 24, par. 11-10-2)
10    Sec. 11-10-2. (a) A department foreign fire insurance
11board shall be created by and among the sworn members of within
12the fire department of each municipality with fewer than
13500,000 inhabitants that has an organized fire department. The
14board shall consist of 7 trustees; the fire chief, who shall
15hold office by virtue of rank, and 6 members, who shall be
16elected at large by the sworn members of the department. If
17there is an insufficient number of candidates to fill all
18these positions, the number of board members may be reduced,
19but not to fewer than 3 trustees. All members of the department
20shall be eligible to be elected as officers of the department
21foreign fire insurance board. The members of this board shall
22annually elect officers. These officers shall be a chairman
23and a treasurer. The trustees of the department foreign fire
24insurance board shall make all needful rules and regulations
25with respect to the department foreign fire insurance board

 

 

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1and the management of the money to be paid appropriated to the
2board. The department foreign fire insurance board may
3establish, manage, and maintain an account for the holding and
4expenditure of all funds paid to the board. The department
5foreign fire insurance board may contract for the purchase of
6goods and services. The department foreign fire insurance
7board may sue all parties necessary to enforce its rights
8under this Section. The officers of the department foreign
9fire insurance board shall develop and maintain a listing of
10those items that the board feels are appropriate expenditures
11under this Act. The treasurer of the department foreign fire
12insurance board shall give a sufficient bond to the
13municipality in which the fire department is organized. This
14bond shall be approved by the mayor or president, as the case
15may be, conditioned upon the faithful performance by the
16treasurer of his or her duties under the ordinance and the
17rules and regulations provided for in this section. The
18treasurer of the department foreign fire insurance board shall
19receive the appropriated money and shall pay out the money
20upon the order of the department foreign fire insurance board
21for the maintenance, use, and benefit of the department. As
22part of the annual municipal audit, these funds shall be
23audited to verify that the funds have been expended by that
24board only for the maintenance, use, and benefit of the
25department.
26    (b) As used in this subsection, "active member" means a

 

 

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1member of the Chicago Fire Department who is not receiving a
2disability pension, retired, or a deferred pensioner of the
3Firemen's Annuity and Benefit Fund of Chicago.
4    A department foreign fire insurance board is created
5within the Chicago Fire Department. The board shall consist of
67 trustees who shall be initially elected on or before January
71, 2019: the fire commissioner, who shall hold office by
8virtue of rank, and 6 elected trustees, who shall be elected at
9large by the sworn members of the department. If there is an
10insufficient number of candidates seeking election to each
11vacant trustee position, the number of board members is
12reduced to 5 trustees, including the fire commissioner of the
13department, until the next election cycle when there are
14enough active members seeking election to fill all 7 member
15seats. All active members are eligible to be elected as
16trustees of the department foreign fire insurance board. Of
17the trustees first elected, 3 trustees shall be elected to a
182-year term and 3 trustees shall be elected to a 3-year term.
19After the initial election, a trustee shall be elected for a
20term of 3 years. If a member of the board resigns, is removed,
21or is unable to continue serving on the board, the vacancy
22shall be filled by special election of the active members or,
23in the case of a vacancy that will exist for fewer than 180
24days until the term expires, by appointment by majority vote
25of the members of the board.
26    The members of the board shall annually elect officers.

 

 

SB1571- 7 -LRB102 12624 AWJ 17963 b

1These officers shall be a chairman, treasurer, and secretary.
2The trustees of the board shall make rules and regulations
3with respect to the board and the management of the money
4appropriated to the board. The officers of the board shall
5develop and maintain a listing of those items that the board
6believes are appropriate expenditures under this subsection.
7The treasurer of the board shall give a sufficient bond to the
8City of Chicago. The cost of the bond shall be paid out of the
9moneys in the board's fund. The bond shall be conditioned upon
10the faithful performance by the treasurer of his or her duties
11under the rules and regulations provided for in this
12subsection. The treasurer of the board shall receive the
13appropriated proceeds and shall disburse the proceeds upon the
14order of the board for the maintenance, use, and benefit of the
15department consistent with this subsection. As part of the
16annual municipal audit, these funds shall be audited to verify
17that the funds have been expended lawfully by the board
18consistent with this subsection.
19    Within 30 days after receipt of any foreign fire insurance
20proceeds by the City of Chicago, the City of Chicago shall
21transfer the proceeds to the board by depositing the proceeds
22into an account determined by the board, except that if the
23effective date of this amendatory Act of the 100th General
24Assembly is after July 31, 2018, then the City of Chicago
25shall, for budget year 2019 only, transfer only 50% of the
26proceeds to the board. Notwithstanding any other provision of

 

 

SB1571- 8 -LRB102 12624 AWJ 17963 b

1law: 50% of the foreign fire insurance proceeds received by
2the board shall be used for the maintenance, use, benefit, or
3enhancement of fire stations or training facilities used by
4the active members of the fire department; 25% of the foreign
5fire insurance proceeds received by the board shall be used
6for the maintenance, use, benefit, or enhancement of emergency
7response vehicles, tools, and equipment used by the active
8members of the department; and 25% of the foreign fire
9insurance proceeds received by the board shall be used for the
10maintenance and enhancement of the department and for the use
11and benefit of the active members of the department in a manner
12otherwise consistent with this subsection. Foreign fire
13insurance proceeds may not be used to purchase, maintain, or
14enhance personal property of a member of the department,
15except for personal property used in the performance of his or
16her duties or training activities.
17    (c) The provisions of this Section shall be the exclusive
18power of the State, pursuant to subsection (h) of Section 6 of
19Article VII of the Constitution.
20(Source: P.A. 100-656, eff. 7-31-18.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.