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Sen. Michael Noland
Filed: 4/2/2014
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1 | | AMENDMENT TO SENATE BILL 3108
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2 | | AMENDMENT NO. ______. Amend Senate Bill 3108 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Local Governmental and Governmental |
5 | | Employees Tort
Immunity Act is amended by changing Section |
6 | | 9-107 as follows:
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7 | | (745 ILCS 10/9-107) (from Ch. 85, par. 9-107)
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8 | | Sec. 9-107. Policy; tax levy.
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9 | | (a) The General Assembly finds that the purpose of this |
10 | | Section is to
provide an extraordinary tax for funding expenses |
11 | | relating to (i) tort liability,
(ii) liability relating to |
12 | | actions brought under the federal Comprehensive Environmental |
13 | | Response, Compensation, and Liability Act of 1980 or the |
14 | | Environmental Protection Act, but only until December 31, 2010, |
15 | | (iii) insurance, and (iv) risk management programs. Thus, the |
16 | | tax has been excluded from
various limitations otherwise |
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1 | | applicable to tax levies. Notwithstanding the
extraordinary |
2 | | nature of the tax authorized by this Section, however, it has
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3 | | become apparent that some units of
local government are using |
4 | | the tax revenue to fund expenses more properly paid
from |
5 | | general operating funds. These uses of the revenue are |
6 | | inconsistent with
the limited purpose of the tax authorization.
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7 | | Therefore, the General Assembly declares, as a matter of |
8 | | policy, that (i) the
use of the tax revenue authorized by this |
9 | | Section for purposes not expressly
authorized under this Act is |
10 | | improper and (ii) the provisions of this Section
shall be |
11 | | strictly construed
consistent with this declaration and the |
12 | | Act's express purposes.
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13 | | (b) A local public entity may annually levy or have levied |
14 | | on
its behalf taxes upon all taxable property within its |
15 | | territory at
a rate that will produce a sum that will be |
16 | | sufficient to:
(i) pay the cost
of insurance, individual or |
17 | | joint self-insurance (including
reserves thereon), including |
18 | | all operating and administrative costs and
expenses directly |
19 | | associated therewith, claims services and risk management
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20 | | directly attributable to loss prevention and loss reduction, |
21 | | legal services
directly attributable
to the insurance, |
22 | | self-insurance, or joint self-insurance program, and
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23 | | educational, inspectional, and supervisory
services directly |
24 | | relating to loss prevention and loss reduction, participation
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25 | | in a reciprocal
insurer as provided in Sections 72, 76, and 81 |
26 | | of the Illinois Insurance Code,
or participation in a
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1 | | reciprocal insurer, all as provided in settlements or judgments |
2 | | under
Section 9-102, including all costs and reserves directly |
3 | | attributable to
being a member of an insurance
pool, under |
4 | | Section 9-103; (ii) pay the costs of and principal
and interest |
5 | | on bonds issued under Section 9-105; (iii) pay judgments
and |
6 | | settlements under Section 9-104 of this Act; (iv) discharge
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7 | | obligations under Section 34-18.1 of the School
Code; (v) pay |
8 | | judgments and settlements under the federal Comprehensive |
9 | | Environmental Response, Compensation, and Liability Act of |
10 | | 1980 and the Environmental Protection Act, but only until |
11 | | December 31, 2010; (vi) pay the costs authorized by the |
12 | | Metro-East Sanitary District Act of 1974 as provided in |
13 | | subsection (a) of Section 5-1 of that Act (70 ILCS 2905/5-1); |
14 | | and (vii)
pay the cost of
risk management programs.
Provided it |
15 | | complies with any other applicable
statutory requirements, the |
16 | | local public entity may self-insure and
establish reserves for |
17 | | expected losses for any property damage or for any
liability or |
18 | | loss for which
the local public entity is authorized to levy or |
19 | | have levied on its behalf
taxes for the purchase of insurance |
20 | | or the payment of judgments or
settlements under this Section. |
21 | | The decision of the board to establish a
reserve shall be based |
22 | | on reasonable actuarial or insurance underwriting
evidence and |
23 | | subject to the limits and reporting provisions in Section
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24 | | 9-103.
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25 | | If a school district was a member of a |
26 | | joint-self-health-insurance
cooperative that had more |
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1 | | liability in outstanding claims than revenue to pay
those |
2 | | claims, the school board of that district may by resolution
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3 | | make a one-time transfer from any fund in which tort immunity |
4 | | moneys are
maintained to the fund
or funds from which
payments |
5 | | to a joint-self-health-insurance
cooperative can
be or have |
6 | | been made of an amount not to exceed the amount of the
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7 | | liability claim that the school district
owes to the |
8 | | joint-self-health-insurance cooperative or that the school |
9 | | district
paid within the 2 years immediately preceding the |
10 | | effective date of this
amendatory Act
of the 92nd General |
11 | | Assembly.
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12 | | Funds raised pursuant to this Section shall only be used |
13 | | for the purposes
specified in this Act, including protection |
14 | | against and reduction of any
liability or loss described
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15 | | hereinabove and under
Federal or State common or statutory law, |
16 | | the Workers' Compensation Act,
the Workers' Occupational |
17 | | Diseases Act , and the Unemployment Insurance Act or, in fire |
18 | | districts subject to the Property Tax Extension Limitation Law, |
19 | | the installation of sprinklers .
Funds
raised pursuant to this |
20 | | Section may be invested in any manner in which
other funds of |
21 | | local public entities may be invested under Section 2 of the
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22 | | Public Funds Investment Act. Interest on such
funds shall be |
23 | | used only for purposes for which the funds can be used or,
if |
24 | | surplus, must be used for abatement of property
taxes levied by |
25 | | the local taxing entity.
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26 | | A local public entity may enter into intergovernmental |
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1 | | contracts with a
term of not to exceed 12 years for the |
2 | | provision of joint self-insurance
which contracts may include |
3 | | an obligation to pay a proportional share of a
general |
4 | | obligation or revenue bond or other debt instrument issued by a
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5 | | local public entity which is a party to the intergovernmental |
6 | | contract and
is authorized by the terms of the contract to |
7 | | issue the bond or other debt
instrument. Funds due under such |
8 | | contracts shall not be considered debt
under any constitutional |
9 | | or statutory limitation and the local public
entity may levy or |
10 | | have levied on its behalf taxes to pay for its
proportional |
11 | | share under the contract. Funds raised pursuant to
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12 | | intergovernmental contracts for the provision of joint |
13 | | self-insurance may
only be used for the payment of any cost, |
14 | | liability or loss against which
a local public entity may |
15 | | protect itself or self-insure pursuant to Section
9-103 or for |
16 | | the payment of which such entity may levy a tax pursuant to
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17 | | this Section, including tort judgments or settlements, costs
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18 | | associated with the issuance, retirement or refinancing of the |
19 | | bonds or
other debt instruments, the repayment of the principal |
20 | | or interest of the
bonds or other debt instruments, the costs |
21 | | of the administration of the
joint self-insurance fund, |
22 | | consultant, and risk care management programs or
the costs of |
23 | | insurance. Any surplus returned to the local public entity
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24 | | under the terms of the intergovernmental contract shall be used |
25 | | only for
purposes set forth in subsection (a) of Section 9-103 |
26 | | and Section 9-107 or for
abatement of property
taxes levied by |
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1 | | the local taxing entity.
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2 | | Any tax levied under this Section shall be levied and |
3 | | collected in
like manner with the general taxes of the entity |
4 | | and shall be exclusive
of and in addition to the amount of tax |
5 | | that entity is now or may
hereafter be authorized to levy for |
6 | | general purposes under any statute
which may limit the amount |
7 | | of tax which that entity may levy for general
purposes. The |
8 | | county clerk of the county in which any part of the
territory |
9 | | of the local taxing entity is located, in reducing tax levies
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10 | | under the provisions of any Act concerning the levy and |
11 | | extension of
taxes, shall not consider any tax provided for by |
12 | | this Section as a part
of the general tax levy for the purposes |
13 | | of the entity nor include such
tax within any limitation of the |
14 | | percent of the assessed valuation upon
which taxes are required |
15 | | to be extended for such entity.
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16 | | With respect to taxes levied under this Section, either |
17 | | before, on, or
after the effective date of this amendatory Act |
18 | | of 1994:
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19 | | (1) Those taxes
are excepted from and shall not be |
20 | | included within the rate limitation imposed
by law on taxes |
21 | | levied for general corporate purposes by the local public
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22 | | entity authorized to levy a tax under this Section.
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23 | | (2) Those taxes that a local public entity has levied |
24 | | in reliance on this
Section and that are excepted under |
25 | | paragraph (1) from
the
rate limitation imposed by law on |
26 | | taxes levied for general corporate purposes
by the local |
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1 | | public entity are not
invalid because of any provision of
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2 | | the law authorizing the local public entity's tax levy for |
3 | | general corporate
purposes that may be construed or may |
4 | | have been construed to restrict or limit
those taxes |
5 | | levied, and those taxes are hereby validated.
This |
6 | | validation of taxes levied applies to all cases pending on |
7 | | or after the
effective date of this amendatory Act of 1994.
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8 | | (3) Paragraphs (1) and (2) do not apply to a hospital |
9 | | organized under
Article 170 or 175 of the Township Code, |
10 | | under the Town Hospital Act, or under
the Township |
11 | | Non-Sectarian Hospital Act and do not give any authority to |
12 | | levy
taxes on behalf of such a hospital in excess of the |
13 | | rate limitation imposed by
law on taxes levied for general |
14 | | corporate purposes. A hospital organized under
Article 170 |
15 | | or 175 of the Township Code, under the Town Hospital Act, |
16 | | or under
the Township Non-Sectarian Hospital Act is not
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17 | | prohibited from levying taxes in support of tort liability |
18 | | bonds if the taxes
do not cause the hospital's aggregate |
19 | | tax rate from exceeding the rate
limitation imposed by law |
20 | | on taxes levied for general corporate purposes.
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21 | | Revenues derived from such tax shall be paid to the |
22 | | treasurer of the
local taxing entity as collected and used for |
23 | | the purposes of this
Section and of Section 9-102, 9-103, 9-104 |
24 | | or 9-105, as the case may
be. If payments on account of such |
25 | | taxes are insufficient during any
year to meet such purposes, |
26 | | the entity may issue tax anticipation
warrants against the |