HB4055 94TH GENERAL ASSEMBLY

LRB094 09440 AJO 42453 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4055

Introduced 2/28/2005, by Rep. Jay C. Hoffman

SYNOPSIS AS INTRODUCED:

50 ILCS 705/9	from Ch. 85, par. 509
50 ILCS 705/9.2 new

Amends the Illinois Police Training Act. Provides that, subject to appropriation, 40% of the amount deposited into the Traffic and Criminal Conviction Surcharge Fund is allocated to the Department of State Police and 60% of the Fund is allocated to the Illinois Law Enforcement Training Standards Board. Provides that the Department of State Police may use such moneys for ordinary, contingent, and capital development expenses; grants to fund community policing; the Illinois State Police Academy; and the training of State or local governmental employees. Provides that the Board may use such moneys for: supplemental expenditures under the Law Enforcement Officer's Training Act; grants in-aid to State and local law-enforcement agencies; law enforcement research and technical assistance; training programs; reform programs; and enhanced crime detection and prevention. Provides that the Secretary of Financial and Professional Regulation shall collect an annual Law Enforcement Revitalization and Public Protection Surcharge from insurance companies classified to do business in the State under Classes 2 and 3 of Section 4 of the Illinois Insurance Code. The surcharge is 1% of the premiums written and of the credit receipts for premiums written in Illinois during calendar year 2006 and thereafter. From July 1, 2005 through December 31, 2005, the surcharge is 2%. A company shall remit the surcharge based on its Property/Casualty Quarterly report to NAIC. An entity that refuses or neglects to pay the surcharge when due is liable for a penalty of 10% of the deficiency for each month there is an unpaid balance. The Department may revoke the license of any entity that violates these requirements and enforce collections by legal action. To recoup collection costs, the Department receives 2% of all moneys collected. Provides that this 2% is transferred to the Illinois Insurance Financial Regulation Fund. Effective July 1, 2005.

FISCAL NOTE ACT MAY APPLY

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 Illinois Police Training Act is amended by changing Section 9 and adding Section 9.2 as follows:

(50 ILCS 705/9) (from Ch. 85, par. 509)

Sec. 9. A special fund is hereby established in the State Treasury to be known as "The Traffic and Criminal Conviction Surcharge Fund" and shall be financed as provided in Sections Section 9.1 and 9.2 of this Act and Section 5-9-1 of the "Unified Code of Corrections", unless the fines, costs or additional amounts imposed are subject to disbursement by the circuit clerk under Section 27.5 of the Clerks of Courts Act. Moneys in this Fund shall be expended as follows:

(1) A portion of the total amount deposited in the Fund may be used, as appropriated by the General Assembly, for the ordinary and contingent expenses and capital development expenses of the Illinois Law Enforcement Training Standards Board;

(2) A portion of the total amount deposited in the Fund shall be appropriated for the reimbursement of local governmental agencies participating in training programs certified by the Board, in an amount equaling 1/2 of the total sum paid by such agencies during the State's previous fiscal year for mandated training for probationary police officers or probationary county corrections officers and for optional advanced and specialized law enforcement or county corrections training. These reimbursements may include the costs for tuition at training schools, the salaries of trainees while in schools, and the necessary travel and room and board expenses for each trainee. If the appropriations under this paragraph (2) are not sufficient to fully reimburse the participating local governmental agencies, the available funds shall be apportioned among such agencies, with priority first given to repayment of the costs of mandatory training given to law enforcement officer or county corrections officer recruits, then to repayment of costs of advanced or specialized training for permanent police officers or permanent county corrections officers;

(3) A portion of the total amount deposited in the Fund may be used to fund the "Intergovernmental Law Enforcement Officer's In-Service Training Act", veto overridden October 29, 1981, as now or hereafter amended, at a rate and method to be determined by the board;

(4) A portion of the Fund also may be used by the Illinois Department of State Police for its ordinary and contingent expenses and capital development expenses, grants to fund community policing, the Illinois State Police Academy, and expenses incurred in the training of employees from any State, county or municipal agency whose function includes enforcement of criminal or traffic law;

(5) A portion of the Fund may be used by the Board to fund grant-in-aid programs and services for the training of employees from any county or municipal agency whose functions include corrections or the enforcement of criminal or traffic law. Of the amount going to the Board, a portion of the total amount deposited into the Fund in accordance with Section 9.2 may be used to supplement the Intergovernmental Law Enforcement Officer's In-Service Training Act at a rate and method to be determined by the Board. In addition, the Board may, subject to appropriation, fund grants-in-aid programs and services, including, but not limited to, (i) grants available to State and local law enforcement agencies, (ii) law enforcement research and technical assistance initiatives, (iii) law enforcement technology and equipment enhancements, (iv) executive, in-service, and advanced training programs, and (v) other prioritized programs to reform, renew, and enhance law enforcement operations and practices or to enhance the detection and prevention of crime within the State of Illinois.

All payments from The Traffic and Criminal Conviction Surcharge Fund shall be made each year from moneys appropriated for the purposes specified in this Section. The amount available from the Traffic and Criminal Conviction Surcharge Fund for appropriation to the Board shall be 60% of annual receipts in the Fund and the amount available for appropriation to the Department of State Police shall be 40% of annual receipts in the Fund. No more than 50% of any appropriation under this Act shall be spent in any city having a population of more than 500,000. The State Comptroller and the State Treasurer shall from time to time, at the direction of the Governor, transfer from The Traffic and Criminal Conviction Surcharge Fund to the General Revenue Fund in the State Treasury such amounts as the Governor determines are in excess of the amounts required to meet the obligations of The Traffic and Criminal Conviction Surcharge Fund.

(Source: P.A. 88-586, eff. 8-12-94; 89-464, eff. 6-13-96.)

(50 ILCS 705/9.2 new)

Sec. 9.2. Law Enforcement Revitalization and Public Protection Surcharge.

(a) The Secretary of Financial and Professional Regulation shall collect the Law Enforcement Revitalization and Public Protection Surcharge from every insurance company classified to transact business in this State pursuant to paragraphs (b), (c), (e), (f), (g), (h), (i), or (j) of Class 2 and pursuant to Class 3 of Section 4 of the Illinois Insurance Code. For premiums written during calendar year 2006, the surcharge shall be in an amount equal to 1% of the premium on the following lines of business: multiple peril (non-liability portion), commercial multiple peril (liability portion), ocean marine, financial guaranty, products liability, commercial auto no-fault and other commercial auto liability, commercial physical damage, fidelity, surety, boiler and machinery, and credit receipts of the insurance company from business done in the State of Illinois during the preceding year, and shall be used in accordance with items (6), (7), and (8) of Section 9 of this Act and shall be collected on July 31, 2007 and annually thereafter.

(b) For premiums written on or after July 1, 2005 and before January 1, 2006, the surcharge shall be in an amount equal to 2% of the premium written on the following lines of business: multiple peril (non-liability portion), commercial multiple peril (liability portion), ocean marine, financial guaranty, products liability, commercial auto no-fault and other commercial auto liability, commercial physical damage, fidelity, surety, boiler and machinery, and credit receipts of the insurance company from business done in the State of Illinois during the preceding year, and shall be used in accordance with items (6), (7), and (8) of Section 9 of this Act. Premiums written after July 1, 2005 shall be payable in 2 installments. The surcharge due on January 15, 2006 is based on the premiums written from July through September 2005. The second installment is due July 15, 2006 based on the premiums written from October through December of 2005. For purposes of this subsection (b), the company shall remit the surcharge based on the Property/Casualty Quarterly Statement Blank, as filed with the National Association of Insurance Commissioners.

(c) The Department of Financial and Professional Regulation may revoke the license of any company, association, co-partnership, or aggregation of individuals licensed by the Department to do business in the State of Illinois if that entity is found to be in violation of the requirements of this Section 9.2.

(d) If a company fails to pay the full amount of a Law Enforcement Revitalization and Public Protection Surcharge of $100 or more due under this Section, 10% of the deficiency shall be added to the amount due as a penalty for each month or part of a month that the surcharge remains unpaid.

(e) The Department of Financial and Professional Regulation may enforce the collection of any delinquent payment or penalty by legal action or in any other manner by which the collection of debts due the State of Illinois may be enforced under the laws of this State.

(f) To recoup the collection costs of the Department of Financial and Professional Regulation, each year 2% of all moneys collected under this Section shall be transferred to the Insurance Financial Regulation Fund.

Section 99. Effective date. This Act takes effect July 1, 2005.