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91_SB0941
SRS91S0001PMcb
1 AN ACT to amend the Local Government and Governmental
2 Employees Tort Immunity Act by changing Section 9-107.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Local Government and Governmental
6 Employees Tort Immunity Act is amended by changing Section
7 9-107 as follows:
8 (745 ILCS 10/9-107) (from Ch. 85, par. 9-107)
9 Sec. 9-107. A local public entity may annually levy or
10 have levied on its behalf taxes upon all taxable property
11 within its territory at a rate that will produce a sum that
12 which will be sufficient to: (i) pay the cost of insurance,
13 individual or joint self-insurance (including reserves
14 thereon), including all operating and administrative costs
15 and expenses directly associated therewith, claims services
16 and risk management directly attributable to loss prevention
17 and loss reduction, legal services directly attributable to
18 the insurance, self-insurance, or joint self-insurance
19 program, and educational, inspectional, and supervisory
20 services directly relating to loss prevention and loss
21 reduction, participation in a reciprocal insurer as provided
22 in Sections 72, 76, and 81 of the Illinois Insurance Code, or
23 participation in a reciprocal insurer, all as provided in
24 settlements or judgments under Section 9-102, including all
25 costs and reserves directly attributable to being a member of
26 an insurance pool, under Section 9-103; (ii) pay the costs of
27 and principal and interest on bonds issued under Section
28 9-105; (iii) pay judgments and settlements under Section
29 9-104; and (iv) discharge obligations under Section 34-18.1
30 of The School Code, as now or hereafter amended, and to pay
31 the cost of risk management programs. Provided it complies
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1 with any other applicable statutory requirements, the local
2 public entity may self-insure and establish reserves for
3 expected losses for any liability or loss for which the local
4 public entity is authorized to levy or have levied on its
5 behalf taxes for the purchase of insurance or the payment of
6 judgments or settlements under this Section. The decision of
7 the board to establish a reserve shall be based on reasonable
8 actuarial or insurance underwriting evidence and subject to
9 the limits and reporting provisions in Section 9-103.
10 Funds raised pursuant to this Section shall only be used
11 for the purposes specified in this Act, including protection
12 against and reduction of any liability or loss described
13 hereinabove and under Federal or State common or statutory
14 law, the Workers' Compensation Act, the Workers' Occupational
15 Diseases Act and the Unemployment Insurance Act. Funds
16 raised pursuant to this Section may be invested in any manner
17 in which other funds of local public entities may be invested
18 under Section 2 of the Public Funds Investment Act. Interest
19 on such funds shall be used only for purposes for which the
20 funds can be used or, if surplus, must be used for abatement
21 of property taxes levied by the local taxing entity.
22 A local public entity may enter into intergovernmental
23 contracts with a term of not to exceed 12 years for the
24 provision of joint self-insurance which contracts may include
25 an obligation to pay a proportional share of a general
26 obligation or revenue bond or other debt instrument issued by
27 a local public entity which is a party to the
28 intergovernmental contract and is authorized by the terms of
29 the contract to issue the bond or other debt instrument.
30 Funds due under such contracts shall not be considered debt
31 under any constitutional or statutory limitation and the
32 local public entity may levy or have levied on its behalf
33 taxes to pay for its proportional share under the contract.
34 Funds raised pursuant to intergovernmental contracts for the
-3- SRS91S0001PMcb
1 provision of joint self-insurance may only be used for the
2 payment of any cost, liability or loss against which a local
3 public entity may protect itself or self-insure pursuant to
4 Section 9-103 or for the payment of which such entity may
5 levy a tax pursuant to this Section, including tort judgments
6 or settlements, costs associated with the issuance,
7 retirement or refinancing of the bonds or other debt
8 instruments, the repayment of the principal or interest of
9 the bonds or other debt instruments, the costs of the
10 administration of the joint self-insurance fund, consultant,
11 and risk care management programs or the costs of insurance.
12 Any surplus returned to the local public entity under the
13 terms of the intergovernmental contract shall be used only
14 for purposes set forth in subsection (a) of Section 9-103 and
15 Section 9-107 or for abatement of property taxes levied by
16 the local taxing entity.
17 Any tax levied under this Section shall be levied and
18 collected in like manner with the general taxes of the entity
19 and shall be exclusive of and in addition to the amount of
20 tax that entity is now or may hereafter be authorized to levy
21 for general purposes under any statute which may limit the
22 amount of tax which that entity may levy for general
23 purposes. The county clerk of the county in which any part of
24 the territory of the local taxing entity is located, in
25 reducing tax levies under the provisions of any Act
26 concerning the levy and extension of taxes, shall not
27 consider any tax provided for by this Section as a part of
28 the general tax levy for the purposes of the entity nor
29 include such tax within any limitation of the percent of the
30 assessed valuation upon which taxes are required to be
31 extended for such entity.
32 With respect to taxes levied under this Section, either
33 before, on, or after the effective date of this amendatory
34 Act of 1994:
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1 (1) Those taxes are excepted from and shall not be
2 included within the rate limitation imposed by law on
3 taxes levied for general corporate purposes by the local
4 public entity authorized to levy a tax under this
5 Section.
6 (2) Those taxes that a local public entity has
7 levied in reliance on this Section and that are excepted
8 under paragraph (1) from the rate limitation imposed by
9 law on taxes levied for general corporate purposes by the
10 local public entity are not invalid because of any
11 provision of the law authorizing the local public
12 entity's tax levy for general corporate purposes that may
13 be construed or may have been construed to restrict or
14 limit those taxes levied, and those taxes are hereby
15 validated. This validation of taxes levied applies to all
16 cases pending on or after the effective date of this
17 amendatory Act of 1994.
18 (3) Paragraphs (1) and (2) do not apply to a
19 hospital organized under Article 170 or 175 of the
20 Township Code, under the Town Hospital Act, or under the
21 Township Non-Sectarian Hospital Act and do not give any
22 authority to levy taxes on behalf of such a hospital in
23 excess of the rate limitation imposed by law on taxes
24 levied for general corporate purposes. A hospital
25 organized under Article 170 or 175 of the Township Code,
26 under the Town Hospital Act, or under the Township
27 Non-Sectarian Hospital Act is not prohibited from levying
28 taxes in support of tort liability bonds if the taxes do
29 not cause the hospital's aggregate tax rate from
30 exceeding the rate limitation imposed by law on taxes
31 levied for general corporate purposes.
32 Revenues derived from such tax shall be paid to the
33 treasurer of the local taxing entity as collected and used
34 for the purposes of this Section and of Section 9-102,
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1 9-103, 9-104 or 9-105, as the case may be. If payments on
2 account of such taxes are insufficient during any year to
3 meet such purposes, the entity may issue tax anticipation
4 warrants against the current tax levy in the manner provided
5 by statute.
6 (Source: P.A. 88-545; 88-692, eff. 2-4-95; 89-150, eff.
7 7-14-95.)