SB1571 EnrolledLRB102 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 and by adding Sections
611-10-0.01 and 11-10-2.5 as follows:
 
7    (65 ILCS 5/11-10-0.01 new)
8    Sec. 11-10-0.01. Short title. This Division may be cited
9as the Foreign Fire Insurance License Fee Act.
 
10    (65 ILCS 5/11-10-1)  (from Ch. 24, par. 11-10-1)
11    Sec. 11-10-1. (a) In each municipality or fire protection
12district, whether incorporated under a general or special law,
13which has a fire department established and maintained by
14municipal or fire protection district ordinances, every
15corporation, company, and association which is not
16incorporated under the laws of this state and which is engaged
17in effecting fire insurance in the municipality or fire
18protection district, shall pay to the foreign fire insurance
19board or to the secretary of the fire protection district for
20the maintenance, use, and benefit of the fire department
21thereof, a sum of not exceeding 2% of the gross receipts
22received from fire insurance upon property situated within the

 

 

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

 

 

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1rate fixed by this subsection by the ordinance of the
2municipality or fire protection district for which his
3corporation, company, or association is accountable under this
4section and the ordinance.
5    If this account is not rendered on or before the fifteenth
6day of July of each year, or if the sum due remains unpaid
7after that day, it shall be unlawful for any corporation,
8company, or association, so in default, to transact any
9business in the municipality or fire protection district until
10the sum due has been fully paid. But this provision shall not
11relieve any corporation, company, or association from the
12payment of any loss upon any risk that may be taken in
13violation of this requirement.
14    The amount of this tax or license fee may be recovered from
15the corporation, company, or association, or any third party
16which owes it, or from its agent, by an action brought by a
17foreign fire insurance board in the name and for the use of the
18municipality or fire protection district as for money had and
19received.
20    The foreign fire insurance board municipal comptroller, if
21any, and if not, then the municipal clerk or the secretary of
22the fire protection district, or the board's or secretary's
23authorized designee, may examine the books, records, and other
24papers and documents of a designated agent, corporation,
25company, or association for the purpose of verifying the
26correctness of the report of the amounts received for fire

 

 

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1insurance.
2    This subsection is section shall not be applicable to
3receipts from contracts of marine fire insurance, even though
4they include insurance against fire, where the premium for the
5fire insurance is not separately specified.
6    (b) A foreign fire insurance board aggrieved by a
7violation of this Section may file suit in the Circuit Court in
8the county where the alleged violation occurred.
9    (c) The regulation of a foreign fire insurance board and
10its license fees are exclusive powers and functions of the
11State. A home rule municipality may not regulate a foreign
12fire insurance board and its license fees. This Section is a
13denial and limitation of home rule powers and functions under
14subsection (h) of Section 6 of Article VII of the Illinois
15Constitution.
16(Source: P.A. 95-807, eff. 8-12-08.)
 
17    (65 ILCS 5/11-10-2)  (from Ch. 24, par. 11-10-2)
18    Sec. 11-10-2. (a) A department foreign fire insurance
19board shall be created by and among the sworn members of within
20the fire department of each municipality with fewer than
21500,000 inhabitants that has an organized fire department. The
22board shall consist of 7 trustees; the fire chief, who shall
23hold office by virtue of rank, and 6 members, who shall be
24elected at large by the sworn members of the department. If
25there is an insufficient number of candidates to fill all

 

 

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1these positions, the number of board members may be reduced,
2but not to fewer than 3 trustees. All sworn members of the
3department shall be eligible to be elected as officers of the
4department foreign fire insurance board. The members of this
5board shall annually elect officers. These officers shall be a
6chairman, and a treasurer, and any other officers deemed
7necessary by the board. The members trustees of the department
8foreign fire insurance board shall make all needful rules and
9regulations with respect to the department foreign fire
10insurance board and the management of the funds money to be
11paid appropriated to the board. The foreign fire insurance
12board may establish, manage, and maintain an account for the
13holding and expenditure of all funds paid to the board. The
14foreign fire insurance board may contract for the purchase of
15goods and services using funds paid to the board. Contracting
16for services includes, but is not limited to, the procurement
17and payment of all accounting, legal, collection, or other
18professional services deemed by the board to be necessary to
19the execution of its duties under this Division using funds
20paid to the board. The foreign fire insurance board may sue all
21parties necessary to enforce its rights under this Section.
22The officers of the department foreign fire insurance board
23shall develop and maintain a listing of those items that the
24board feels are appropriate expenditures under this Act. The
25treasurer of the department foreign fire insurance board shall
26give a sufficient bond to the municipality in which the fire

 

 

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1department is organized. This bond shall be approved by the
2mayor or president, as the case may be, conditioned upon the
3faithful performance by the treasurer of his or her duties
4under the ordinance and the rules and regulations provided for
5in this section. The treasurer of the department foreign fire
6insurance board shall receive the funds paid as provided in
7Section 1 appropriated money and shall pay out the funds money
8upon the order of the department foreign fire insurance board
9for the maintenance, use, and benefit of the department or as
10otherwise permitted by this Division. These As part of the
11annual municipal audit, these funds shall be audited to verify
12that the funds have been expended by that board only for the
13maintenance, use, and benefit of the department using funds
14paid to the board. Contracting for services includes, but is
15not limited to, the procurement and payment of all accounting,
16legal, collection, or other professional services deemed by
17the board to be necessary to the execution of its duties under
18this Division using funds paid to the board.
19    Disputes between a fire chief and the remaining members of
20a foreign fire insurance board concerning whether any
21expenditure of funds by the board is for the maintenance, use,
22or benefit of the department or for any other purpose
23authorized by this Division shall be resolved through binding
24arbitration, pursuant to a written arbitration agreement
25established by the foreign fire insurance board, that is
26recognized under the Uniform Arbitration Act. Arbitrations

 

 

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1held pursuant to a written arbitration agreement are the
2exclusive remedy available for resolving such disputes.
3    (b) As used in this subsection, "active member" means a
4member of the Chicago Fire Department who is not receiving a
5disability pension, retired, or a deferred pensioner of the
6Firemen's Annuity and Benefit Fund of Chicago.
7    A department foreign fire insurance board is created
8within the Chicago Fire Department. The board shall consist of
97 trustees who shall be initially elected on or before January
101, 2019: the fire commissioner, who shall hold office by
11virtue of rank, and 6 elected trustees, who shall be elected at
12large by the sworn members of the department. If there is an
13insufficient number of candidates seeking election to each
14vacant trustee position, the number of board members is
15reduced to 5 trustees, including the fire commissioner of the
16department, until the next election cycle when there are
17enough active members seeking election to fill all 7 member
18seats. All active members are eligible to be elected as
19trustees of the department foreign fire insurance board. Of
20the trustees first elected, 3 trustees shall be elected to a
212-year term and 3 trustees shall be elected to a 3-year term.
22After the initial election, a trustee shall be elected for a
23term of 3 years. If a member of the board resigns, is removed,
24or is unable to continue serving on the board, the vacancy
25shall be filled by special election of the active members or,
26in the case of a vacancy that will exist for fewer than 180

 

 

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

 

 

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1Assembly is after July 31, 2018, then the City of Chicago
2shall, for budget year 2019 only, transfer only 50% of the
3proceeds to the board. Notwithstanding any other provision of
4law: 50% of the foreign fire insurance proceeds received by
5the board shall be used for the maintenance, use, benefit, or
6enhancement of fire stations or training facilities used by
7the active members of the fire department; 25% of the foreign
8fire insurance proceeds received by the board shall be used
9for the maintenance, use, benefit, or enhancement of emergency
10response vehicles, tools, and equipment used by the active
11members of the department; and 25% of the foreign fire
12insurance proceeds received by the board shall be used for the
13maintenance and enhancement of the department and for the use
14and benefit of the active members of the department in a manner
15otherwise consistent with this subsection. Foreign fire
16insurance proceeds may not be used to purchase, maintain, or
17enhance personal property of a member of the department,
18except for personal property used in the performance of his or
19her duties or training activities.
20    (c) The provisions of this Section shall be the exclusive
21power of the State, pursuant to subsection (h) of Section 6 of
22Article VII of the Constitution.
23(Source: P.A. 100-656, eff. 7-31-18.)
 
24    (65 ILCS 5/11-10-2.5 new)
25    Sec. 11-10-2.5. Collection of licensing fees. A foreign

 

 

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1fire insurance board created under this Division has the sole
2and exclusive authority to collect all licensing fees required
3to be paid by foreign fire insurance companies, corporations,
4associations, or third parties under this Division. This
5authority includes the right to designate a representative or
6agent authorized to collect such fees on their behalf.
7    A board created pursuant to subsection (a) of Section 2
8that does not collect licensing fees on its own accord, or that
9does not designate an authorized representative or agent to
10collect the fees on their behalf, shall have all fees
11collected on its behalf by a statewide organization of
12municipalities recognized under Section 1-8-1.
13    Licensing fees collected from foreign fire insurance
14companies, corporations, associations, or third parties under
15a representative or agent authorized to do so by a foreign fire
16insurance board or by a statewide organization of
17municipalities recognized under Section 1-8-1 shall be paid
18promptly and directly to the treasurer of the foreign fire
19insurance board, less reasonable costs and expenses associated
20with the collection of the fees, as agreed to by the board.
 
21    Section 99. Effective date. This Act takes effect January
221, 2023.