103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5050

 

Introduced 2/8/2024, by Rep. Natalie A. Manley

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-44020
55 ILCS 5/5-44027 new
55 ILCS 5/5-44030
55 ILCS 5/5-44035
55 ILCS 5/5-44040
55 ILCS 5/5-44043
55 ILCS 5/5-44045
55 ILCS 5/5-44050
55 ILCS 5/5-44055

    Amends the Local Government Reduction and Efficiency Division of the Counties Code. Defines "district" as a township road and bridge district, sanitary district, drainage district, mosquito abatement district, or street light district. Provides that a county board may enact a resolution or ordinance or a county executive may issue an executive order to dissolve a district, but must first adopt or issue a plan that describes how the county will absorb and implement the services provided by the district, that provides a reason to discontinue the services provided, that describes how the county will pay for the transfer of services, and that shows long-term savings for taxpayers and file that plan with the State Comptroller. Provides that the State Comptroller may approve or deny the dissolution of the district based on the contents of the plan. Provides that, if the dissolution and transfer is approved by the State Comptroller, the county board may adopt a resolution or ordinance or a county executive may issue an executive order authorizing the dissolution of the district not less than 60 days following the court's appointment of a trustee-in-dissolution. Includes procedures for the dissolution of the district and designation of individuals to represent the district. Provides that the county must provide quarterly updates to the State Comptroller and that the State Comptroller shall publish those quarterly updates on the State Comptroller's local government Warehouse database. Makes conforming changes in the Division.


LRB103 36381 AWJ 66482 b

 

 

A BILL FOR

 

HB5050LRB103 36381 AWJ 66482 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 Counties Code is amended by changing
5Sections 5-44020, 5-44030, 5-44035, 5-44040, 5-44043, 5-44045,
65-44050, and 5-44055 and by adding Section 5-44027 as follows:
 
7    (55 ILCS 5/5-44020)
8    Sec. 5-44020. Definitions. In this Division 5-44:
9    "District" means a township road and bridge district,
10sanitary district, drainage district, mosquito abatement
11district, or street light district, notwithstanding how a
12district's governing board is appointed or elected.
13    "Fire protection jurisdiction" means a fire protection
14district, municipal fire department, or service organized
15under Section 5-1056.1 of the Counties Code, Sections 195 and
16200 of the Township Code, Section 10-2.1 of the Illinois
17Municipal Code, or the Illinois Fire Protection District Act.
18    "Governing board" means the individual or individuals who
19constitute the corporate authorities of a unit of local
20government or district.
21    "Unit of local government" or "unit" means any unit of
22local government located entirely within one county, to which
23the county board chairman or county executive directly

 

 

HB5050- 2 -LRB103 36381 AWJ 66482 b

1appoints a majority of its governing board with the advice and
2consent of the county board, but shall not include a fire
3protection district that directly employs any regular
4full-time employees, a conservation district organized under
5the Conservation District Act, a special district organized
6under the Water Commission Act of 1985, a community mental
7health board established under the Community Mental Health
8Board Act, or a board established under the Community Care for
9Persons with Developmental Disabilities Act.
10(Source: P.A. 99-709, eff. 8-5-16; 100-107, eff. 1-1-18;
11100-1129, eff. 1-1-19.)
 
12    (55 ILCS 5/5-44027 new)
13    Sec. 5-44027. Dissolution of districts.
14    (a) A county board or county executive may dissolve a
15district as provided in this Section.
16    (b) Before a county board may enact a resolution or
17ordinance or a county executive may issue an executive order
18to dissolve a district under this Section, the county board or
19county executive must adopt or issue a plan that describes how
20the county will absorb and implement the services provided by
21the district, that provides a reason to discontinue the
22services provided, that describes how the county will pay for
23the transfer of services, and that shows long-term savings for
24taxpayers. The plan must be filed with the State Comptroller.
25The State Comptroller may approve or deny the dissolution of

 

 

HB5050- 3 -LRB103 36381 AWJ 66482 b

1the district based on the contents of the plan.
2    (c) If the dissolution and transfer is approved by the
3State Comptroller, the county board may adopt a resolution or
4ordinance or a county executive may issue an executive order
5authorizing the dissolution of the district not less than 60
6days following the court's appointment of a
7trustee-in-dissolution as provided in this subsection. Upon
8adoption of the resolution or ordinance or the issuance of an
9executive order, the chairperson of the county board or county
10executive shall petition the circuit court for an order
11designating a trustee-in-dissolution for the district,
12immediately terminating the terms of the members of the
13governing board of the district, and providing for the
14compensation of the trustee-in-dissolution, which shall be
15paid from the corporate funds of the district.
16    (d) Upon the court's appointment of a
17trustee-in-dissolution, and notwithstanding any other
18provision of law, the State's attorney, or the State's
19attorney's designee, shall become the exclusive legal
20representative of the dissolving district. The county
21treasurer shall become the treasurer of the district and the
22county clerk shall become the secretary of the district.
23    (e) The county must provide quarterly updates to the State
24Comptroller, and the State Comptroller shall publish those
25quarterly updates on the State Comptroller's local government
26Warehouse database.
 

 

 

HB5050- 4 -LRB103 36381 AWJ 66482 b

1    (55 ILCS 5/5-44030)
2    Sec. 5-44030. Trustee-in-dissolution; powers and duties.
3    (a) The trustee-in-dissolution shall have the following
4powers and duties:
5        (1) to execute all of the powers and duties of the
6    previous board;
7        (2) to levy and rebate taxes, subject to the approval
8    of the county board, for the purpose of paying the debts,
9    obligations, and liabilities of the unit or district that
10    are outstanding on the date of the dissolution and the
11    necessary expenses of closing up the affairs of the
12    district if these funds are not available from the unit of
13    local government's or district's general fund;
14        (3) to present, within 30 days of his or her
15    appointment, a plan for the consolidation and dissolution
16    of the unit of local government or district to the county
17    board for its approval. The plan shall identify what
18    functions, if any, of the unit of local government or
19    district shall be undertaken by the county upon
20    dissolution and whether any taxes previously levied for
21    the provision of these functions shall be maintained;
22        (4) to enter into an intergovernmental agreement with
23    one or more governmental entities to utilize existing
24    resources including, but not limited to, labor, materials,
25    and property, as may be needed to carry out the foregoing

 

 

HB5050- 5 -LRB103 36381 AWJ 66482 b

1    duties;
2        (5) to enter into an intergovernmental agreement with
3    the county to combine or transfer any of the powers,
4    privileges, functions, or authority of the unit of local
5    government or district to the county as may be required to
6    facilitate the transition; and
7        (6) to sell the property of the unit or district and,
8    in case any excess remains after all liabilities of the
9    unit or district are paid, the excess shall be transferred
10    to a special fund created and maintained by the county
11    treasurer to be expended solely to defer the costs
12    incurred by the county in performing the duties of the
13    unit or district, subject to the requirements of Section
14    5-44035 of this Division. Nothing in this Section shall
15    prohibit the county from acquiring any or all real or
16    personal property of the unit or district.
17    (b) For fire protection jurisdictions, the
18trustee-in-dissolution shall not have:
19        (1) the powers enumerated in this Section unless the
20    dissolution of that unit of local government shall not
21    increase the average response times nor decrease the level
22    of services provided; and
23        (2) the power to decrease the levy that is in effect on
24    or before the date of dissolution of the fire protection
25    jurisdiction that affects the provision of fire and
26    emergency medical services.

 

 

HB5050- 6 -LRB103 36381 AWJ 66482 b

1(Source: P.A. 98-126, eff. 8-2-13.)
 
2    (55 ILCS 5/5-44035)
3    Sec. 5-44035. Outstanding indebtedness.
4    (a) In case any unit or district dissolved pursuant to
5this Division has bonds or notes outstanding that are a lien on
6funds available in the treasury at the time of consolidation,
7such lien shall be unimpaired by such dissolution and the lien
8shall continue in favor of the bond or note holders. The funds
9available subject to such a lien shall be set apart and held
10for the purpose of retiring such secured debt and no such funds
11shall be transferred into the general funds of the county.
12    (b) In case any unit or district dissolved pursuant to
13this Division has unsecured debts outstanding at the time of
14dissolution, any funds in the treasury of such unit or
15district or otherwise available and not committed shall, to
16the extent necessary, be applied to the payment of such debts.
17    (c) All property in the territory served by the dissolved
18unit of local government or district shall be subject to
19taxation to pay the debts, bonds, and obligations of the
20dissolved district. The county board shall abate this taxation
21upon the discharge of all outstanding obligations.
22(Source: P.A. 98-126, eff. 8-2-13.)
 
23    (55 ILCS 5/5-44040)
24    Sec. 5-44040. Effect of dissolution. Immediately upon the

 

 

HB5050- 7 -LRB103 36381 AWJ 66482 b

1dissolution of a unit of local government or district pursuant
2to this Division:
3    (a) Notwithstanding the provisions of the Special Service
4Area Tax Law of the Property Tax Code that pertain to the
5establishment of special service areas, all or part of the
6territory formerly served by the dissolved unit of local
7government or district may be established as a special service
8area or areas of the county if the county board by resolution
9determines that this designation is necessary for it to
10provide services. The special service area, if created, shall
11include all territory formerly served by the dissolved unit of
12local government or district if the dissolved unit or district
13has outstanding indebtedness. If the boundaries of a special
14service area created under this subsection include territory
15within a municipality, the corporate authorities of that
16municipality may, with the consent of the county, assume
17responsibility for the special service area and become its
18governing body.
19    All or part of the territory formerly served by a
20dissolved fire protection jurisdiction shall not be
21established as a special service area unless the creation of
22the special service area does not increase the average
23response times nor decrease the level of service provided.
24    (b) In addition to any other powers provided by law, the
25governing body of a special service area created pursuant to
26this subsection shall assume and is authorized to exercise all

 

 

HB5050- 8 -LRB103 36381 AWJ 66482 b

1the powers and duties of the dissolved unit or district with
2respect to the special service area. The governing body is
3also authorized to continue to levy any tax previously imposed
4by the unit of local government or district within the special
5service area. However, the governing board shall not have the
6power to decrease the levy that is in effect on or before the
7date of dissolution of the fire protection jurisdiction that
8affects the provision of fire and emergency medical services.
9    (c) Subsequent increases of the current tax levy within
10the special service area or areas shall be made in accordance
11with the provisions of the Special Service Area Tax Law of the
12Property Tax Code.
13(Source: P.A. 98-126, eff. 8-2-13.)
 
14    (55 ILCS 5/5-44043)
15    Sec. 5-44043. Rights and obligations of employees.
16    (a) The status and rights of employees represented by an
17exclusive bargaining representative shall not be affected by
18the dissolution of a unit of local government or district
19under this Division, except that this subsection does not
20apply in DuPage, Lake, and McHenry Counties for actions taken
21before the effective date of this amendatory Act of the 100th
22General Assembly.
23    (b) Obligations of the dissolving unit of local government
24or district assumed by the trustee-in-dissolution, county, or
25governing body of a special service area include the

 

 

HB5050- 9 -LRB103 36381 AWJ 66482 b

1obligation to honor representation rights under the Illinois
2Public Labor Relations Act and any collective bargaining
3agreements existing on the date of dissolution of the unit of
4local government or district.
5    (c) The rights of employees under any pensions, retirement
6plans, or annuity plans existing on the date of dissolution of
7the unit of local government or district are not affected by
8the dissolution of a unit of local government or district
9under this Division.
10(Source: P.A. 100-107, eff. 1-1-18.)
 
11    (55 ILCS 5/5-44045)
12    Sec. 5-44045. Abatement of levy. Whenever a county has
13dissolved a unit of local government or district pursuant to
14this Division, the county or municipality shall, within 6
15months of the effective date of the dissolution and every year
16thereafter, evaluate the need to continue any existing tax
17levy until the county or municipality abates the levy in the
18manner set forth by the Special Service Area Tax Law of the
19Property Tax Code.
20(Source: P.A. 98-126, eff. 8-2-13.)
 
21    (55 ILCS 5/5-44050)
22    Sec. 5-44050. Tax collection and enforcement. The
23dissolution of a unit of local government or district pursuant
24to this Division shall not adversely affect proceedings for

 

 

HB5050- 10 -LRB103 36381 AWJ 66482 b

1the collection or enforcement of any tax. Those proceedings
2shall continue to finality as though no dissolution had taken
3place. The proceeds thereof shall be paid over to the
4treasurer of the county to be used for the purpose for which
5the tax was levied or assessed. Proceedings to collect and
6enforce such taxes may be instituted and carried on in the name
7of the unit or district.
8(Source: P.A. 98-126, eff. 8-2-13.)
 
9    (55 ILCS 5/5-44055)
10    Sec. 5-44055. Litigation. All suits pending in any court
11on behalf of or against a unit or district dissolved pursuant
12to this Division may be prosecuted or defended in the name of
13the county by the State's attorney. All judgments obtained for
14a unit or district dissolved pursuant to this Division shall
15be collected and enforced by the county for its benefit.
16(Source: P.A. 98-126, eff. 8-2-13.)