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| Public Act 095-0244 |
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AN ACT concerning environmental liability.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The School Code is amended by changing Section | ||||
17-2.5 as follows:
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(105 ILCS 5/17-2.5) (from Ch. 122, par. 17-2.5)
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Sec. 17-2.5. Tax for tort immunity. The school board of any | ||||
district
may by proper resolution levy an annual tax upon the | ||||
value of the taxable
property within its territory as equalized | ||||
or assessed by the Department of
Revenue at a rate that will | ||||
produce a sum sufficient (i) to pay the cost of
settlements or | ||||
judgments under Section 9-102 of the Local Governmental and
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Governmental Employees Tort Immunity Act, (ii) to pay the cost | ||||
of settlements or judgments under the federal Comprehensive | ||||
Environmental Response, Compensation, and Liability Act of | ||||
1980 and the Environmental Protection Act, but only until | ||||
December 31, 2010, (iii)
as now or hereafter amended, to
pay | ||||
the costs of protecting itself or its employees against | ||||
liability,
property damage or loss, including all costs and | ||||
reserves of being a member
of an insurance pool, under Section | ||||
9-103 of the Local Governmental and Governmental Employees Tort | ||||
Immunity
that Act, (iv) to pay the costs of
and principal and | ||||
interest on bonds issued under Section 9-105 of the Local | ||||
Governmental and Governmental Employees Tort Immunity
that
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Act,
(v) to pay tort judgments or settlements under Section | ||
9-104 of the Local Governmental and Governmental Employees Tort | ||
Immunity
that Act to
the extent necessary to discharge such | ||
obligations, and (vi) to pay the cost of
risk care management | ||
programs in accordance with Section 9-107 of the Local | ||
Governmental and Governmental Employees Tort Immunity
that
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Act.
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(Source: P.A. 86-668.)
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Section 10. The Local Governmental and Governmental | ||
Employees Tort
Immunity Act is amended by changing Section | ||
9-107 as follows:
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(745 ILCS 10/9-107) (from Ch. 85, par. 9-107)
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Sec. 9-107. Policy; tax levy.
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(a) The General Assembly finds that the purpose of this | ||
Section is to
provide an extraordinary tax for funding expenses | ||
relating to (i) tort liability,
(ii) liability relating to | ||
actions brought under the federal Comprehensive Environmental | ||
Response, Compensation, and Liability Act of 1980 or the | ||
Environmental Protection Act, but only until December 31, 2010, | ||
(iii) insurance, and (iv) risk management programs. Thus, the | ||
tax has been excluded from
various limitations otherwise | ||
applicable to tax levies. Notwithstanding the
extraordinary | ||
nature of the tax authorized by this Section, however, it has
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become apparent that some units of
local government are using | ||
the tax revenue to fund expenses more properly paid
from | ||
general operating funds. These uses of the revenue are | ||
inconsistent with
the limited purpose of the tax authorization.
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Therefore, the General Assembly declares, as a matter of | ||
policy, that (i) the
use of the tax revenue authorized by this | ||
Section for purposes not expressly
authorized under this Act is | ||
improper and (ii) the provisions of this Section
shall be | ||
strictly construed
consistent with this declaration and the | ||
Act's express purposes.
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(b) A local public entity may annually levy or have levied | ||
on
its behalf taxes upon all taxable property within its | ||
territory at
a rate that will produce a sum that will be | ||
sufficient to:
(i) pay the cost
of insurance, individual or | ||
joint self-insurance (including
reserves thereon), including | ||
all operating and administrative costs and
expenses directly | ||
associated therewith, claims services and risk management
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directly attributable to loss prevention and loss reduction, | ||
legal services
directly attributable
to the insurance, | ||
self-insurance, or joint self-insurance program, and
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educational, inspectional, and supervisory
services directly | ||
relating to loss prevention and loss reduction, participation
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in a reciprocal
insurer as provided in Sections 72, 76, and 81 | ||
of the Illinois Insurance Code,
or participation in a
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reciprocal insurer, all as provided in settlements or judgments | ||
under
Section 9-102, including all costs and reserves directly | ||
attributable to
being a member of an insurance
pool, under | ||
Section 9-103; (ii) pay the costs of and principal
and interest | ||
on bonds issued under Section 9-105; (iii) pay judgments
and | ||
settlements under Section 9-104 of this Act; and (iv) discharge
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obligations under Section 34-18.1 of the
The School
Code; (v) | ||
pay judgments and settlements under the federal Comprehensive | ||
Environmental Response, Compensation, and Liability Act of | ||
1980 and the Environmental Protection Act, but only until | ||
December 31, 2010; , as now or hereafter amended, and (vi)
to
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pay the cost of
risk management programs.
Provided it complies | ||
with any other applicable
statutory requirements, the local | ||
public entity may self-insure and
establish reserves for | ||
expected losses for any property damage or for any
liability or | ||
loss for which
the local public entity is authorized to levy or | ||
have levied on its behalf
taxes for the purchase of insurance | ||
or the payment of judgments or
settlements under this Section. | ||
The decision of the board to establish a
reserve shall be based | ||
on reasonable actuarial or insurance underwriting
evidence and | ||
subject to the limits and reporting provisions in Section
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9-103.
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If a school district was a member of a | ||
joint-self-health-insurance
cooperative that had more | ||
liability in outstanding claims than revenue to pay
those | ||
claims, the school board of that district may by resolution
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make a one-time transfer from any fund in which tort immunity | ||
moneys are
maintained to the fund
or funds from which
payments | ||
to a joint-self-health-insurance
cooperative can
be or have | ||
been made of an amount not to exceed the amount of the
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liability claim that the school district
owes to the | ||
joint-self-health-insurance cooperative or that the school | ||
district
paid within the 2 years immediately preceding the | ||
effective date of this
amendatory Act
of the 92nd General | ||
Assembly.
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Funds raised pursuant to this Section shall only be used | ||
for the purposes
specified in this Act, including protection | ||
against and reduction of any
liability or loss described
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hereinabove and under
Federal or State common or statutory law, | ||
the Workers' Compensation Act,
the Workers' Occupational | ||
Diseases Act and the Unemployment Insurance Act.
Funds
raised | ||
pursuant to this Section may be invested in any manner in which
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other funds of local public entities may be invested under | ||
Section 2 of the
Public Funds Investment Act. Interest on such
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funds shall be used only for purposes for which the funds can | ||
be used or,
if surplus, must be used for abatement of property
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taxes levied by the local taxing entity.
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A local public entity may enter into intergovernmental | ||
contracts with a
term of not to exceed 12 years for the | ||
provision of joint self-insurance
which contracts may include | ||
an obligation to pay a proportional share of a
general | ||
obligation or revenue bond or other debt instrument issued by a
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local public entity which is a party to the intergovernmental | ||
contract and
is authorized by the terms of the contract to | ||
issue the bond or other debt
instrument. Funds due under such | ||
contracts shall not be considered debt
under any constitutional | ||
or statutory limitation and the local public
entity may levy or | ||
have levied on its behalf taxes to pay for its
proportional | ||
share under the contract. Funds raised pursuant to
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intergovernmental contracts for the provision of joint | ||
self-insurance may
only be used for the payment of any cost, | ||
liability or loss against which
a local public entity may | ||
protect itself or self-insure pursuant to Section
9-103 or for | ||
the payment of which such entity may levy a tax pursuant to
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this Section, including tort judgments or settlements, costs
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associated with the issuance, retirement or refinancing of the | ||
bonds or
other debt instruments, the repayment of the principal | ||
or interest of the
bonds or other debt instruments, the costs | ||
of the administration of the
joint self-insurance fund, | ||
consultant, and risk care management programs or
the costs of | ||
insurance. Any surplus returned to the local public entity
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under the terms of the intergovernmental contract shall be used | ||
only for
purposes set forth in subsection (a) of Section 9-103 | ||
and Section 9-107 or for
abatement of property
taxes levied by | ||
the local taxing entity.
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Any tax levied under this Section shall be levied and | ||
collected in
like manner with the general taxes of the entity | ||
and shall be exclusive
of and in addition to the amount of tax | ||
that entity is now or may
hereafter be authorized to levy for | ||
general purposes under any statute
which may limit the amount | ||
of tax which that entity may levy for general
purposes. The | ||
county clerk of the county in which any part of the
territory | ||
of the local taxing entity is located, in reducing tax levies
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under the provisions of any Act concerning the levy and | ||
extension of
taxes, shall not consider any tax provided for by | ||
this Section as a part
of the general tax levy for the purposes | ||
of the entity nor include such
tax within any limitation of the | ||
percent of the assessed valuation upon
which taxes are required | ||
to be extended for such entity.
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With respect to taxes levied under this Section, either | ||
before, on, or
after the effective date of this amendatory Act | ||
of 1994:
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(1) Those taxes
are excepted from and shall not be | ||
included within the rate limitation imposed
by law on taxes | ||
levied for general corporate purposes by the local public
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entity authorized to levy a tax under this Section.
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(2) Those taxes that a local public entity has levied | ||
in reliance on this
Section and that are excepted under | ||
paragraph (1) from
the
rate limitation imposed by law on | ||
taxes levied for general corporate purposes
by the local | ||
public entity are not
invalid because of any provision of
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the law authorizing the local public entity's tax levy for | ||
general corporate
purposes that may be construed or may | ||
have been construed to restrict or limit
those taxes | ||
levied, and those taxes are hereby validated.
This | ||
validation of taxes levied applies to all cases pending on | ||
or after the
effective date of this amendatory Act of 1994.
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(3) Paragraphs (1) and (2) do not apply to a hospital | ||
organized under
Article 170 or 175 of the Township Code, | ||
under the Town Hospital Act, or under
the Township | ||
Non-Sectarian Hospital Act and do not give any authority to | ||
levy
taxes on behalf of such a hospital in excess of the | ||
rate limitation imposed by
law on taxes levied for general | ||
corporate purposes. A hospital organized under
Article 170 | ||
or 175 of the Township Code, under the Town Hospital Act, | ||
or under
the Township Non-Sectarian Hospital Act is not
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prohibited from levying taxes in support of tort liability | ||
bonds if the taxes
do not cause the hospital's aggregate | ||
tax rate from exceeding the rate
limitation imposed by law | ||
on taxes levied for general corporate purposes.
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Revenues derived from such tax shall be paid to the | ||
treasurer of the
local taxing entity as collected and used for | ||
the purposes of this
Section and of Section 9-102, 9-103, 9-104 | ||
or 9-105, as the case may
be. If payments on account of such | ||
taxes are insufficient during any
year to meet such purposes, | ||
the entity may issue tax anticipation
warrants against the | ||
current tax levy in the manner provided by statute.
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(Source: P.A. 91-628, eff. 1-1-00; 92-732, eff. 7-25-02.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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