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Public Act 92-0479
HB2380 Enrolled LRB9206653OBpc
AN ACT concerning bonds.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Construction Bond Act is amended
by changing Section 3 as follows:
(30 ILCS 550/3)
Sec. 3. Builder or developer cash bond or other surety.
(a) A county or municipality may not require a cash
bond, irrevocable letter of credit, surety bond, or letter of
commitment issued by a bank, savings and loan association,
surety, or insurance company from a builder or developer to
guarantee completion of a project improvement when the
builder or developer has filed with the county or municipal
clerk a current, irrevocable letter of credit, surety bond,
or letter of commitment issued by a bank, savings and loan
association, surety, or insurance company, deemed good and
sufficient by the county or municipality accepting such
security, in an amount equal to or greater than 110% of the
amount of the bid on each project improvement. A builder or
developer has the option may elect to utilize a cash bond, an
irrevocable letter of credit, surety bond, or letter of
commitment, issued by a bank, savings and loan association,
surety, or insurance company, deemed good and sufficient by
the county or municipality, to satisfy any cash bond
requirement established by a county or municipality. Except
for a municipality or county with a population of 1,000,000
or more, the county or municipality must approve and deem a
surety or insurance company good and sufficient for the
purposes set forth in this Section if the surety or insurance
company is authorized by the Illinois Department of Insurance
to sell and issue sureties in the State of Illinois.
(b) If a county or municipality receives a cash bond,
irrevocable letter of credit, or surety bond from a builder
or developer to guarantee completion of a project
improvement, the county or municipality shall (i) register
the bond under the address of the project and the
construction permit number and (ii) give the builder or
developer a receipt for the bond. The county or municipality
shall establish and maintain a separate account for all cash
bonds received from builders and developers to guarantee
completion of a project improvement.
(c) The county or municipality shall refund a cash bond
to a builder or developer, or release the irrevocable letter
of credit or surety bond, within 60 days after the builder or
developer notifies the county or municipality in writing of
the completion of the project improvement for which the bond
was required. For these purposes, "completion" means that the
county or municipality has determined that the project
improvement for which the bond was required is complete or a
licensed engineer or licensed architect has certified to the
builder or developer and the county or municipality that the
project improvement has been completed to the applicable
codes and ordinances. The county or municipality shall pay
interest to the builder or developer, beginning 60 days after
the builder or developer notifies the county or municipality
in writing of the completion of the project improvement, on
any bond not refunded to a builder or developer, at the rate
of 1% per month.
(d) A home rule county or municipality may not require
or maintain cash bonds, irrevocable letters of credit, surety
bonds, or letters of commitment issued by a bank, savings and
loan association, surety, or insurance company from builders
or developers in a manner inconsistent with this Section.
This Section supercedes and controls over other provisions of
the Counties Code or Illinois Municipal Code as they apply to
and guarantee completion of a project improvement that is
required by the county or municipality, regardless of whether
the project improvement is a condition of annexation
agreements. This Section is a denial and limitation under
subsection (i) of Section 6 of Article VII of the Illinois
Constitution on the concurrent exercise by a home rule county
or municipality of powers and functions exercised by the
State.
(Source: P.A. 89-518, eff. 1-1-97; 90-558, eff. 12-12-97.)
Section 10. The Counties Code is amended by changing
Sections 5-1041 and 5-1123 as follows:
(55 ILCS 5/5-1041) (from Ch. 34, par. 5-1041)
Sec. 5-1041. Maps, plats and subdivisions. A county board
may prescribe, by resolution or ordinance, reasonable rules
and regulations governing the location, width and course of
streets and highways and of floodplain, stormwater and
floodwater runoff channels and basins, and the provision of
necessary public grounds for schools, public libraries, parks
or playgrounds, in any map, plat or subdivision of any block,
lot or sub-lot or any part thereof or any piece or parcel of
land, not being within any city, village or incorporated
town. The rules and regulations may include such reasonable
requirements with respect to water supply and sewage
collection and treatment as may be established by the
Environmental Protection Agency, and such reasonable
requirements with respect to floodplain and stormwater
management as may be established by the County Stormwater
Management Committee established under Section 5-1062 of this
Code, and such reasonable requirements with respect to street
drainage and surfacing as may be established by the county
engineer or superintendent of highways and which by
resolution shall be deemed to be the minimum requirements in
the interest of the health, safety, education and convenience
of the public of the county; and may provide by resolution
that the map, plat or subdivision shall be submitted to the
county board or to some officer to be designated by the
county board for their or his approval. The county board
shall have a qualified engineer make an estimate of the
probable expenditures necessary to enable any person to
conform with the standards of construction established by the
board pursuant to the provisions of this Section. Except as
provided in Section 3 of the Public Construction Bond Act,
each person who seeks the county board's approval of a map,
plat or subdivision shall post a good and sufficient cash
bond, irrevocable letter of credit, surety bond, or other
adequate security with the county clerk, in a penal sum
sufficient to cover the estimate of expenditures made by the
estimating engineer. The cash bond, irrevocable letter of
credit, surety bond, or other adequate security shall be
conditioned upon faithful adherence to the rules and
regulations of the county board promulgated pursuant to the
authorization granted to it by this Section or by Section
5-1062 of this Code, and in such cases no such map, plat or
subdivision shall be entitled to record in the proper county
or have any validity until it has been so approved. If the
county board requires a cash bond, letter of credit, surety,
or any other method to cover the costs and expenses and to
insure completion of the requirements, the requirements shall
be subject to the provisions of Section 5-1123 of this Code.
This Section is subject to the provisions of Section 5-1123.
The county board may, by resolution, provide a schedule
of fees sufficient to reimburse the county for the costs
incurred in reviewing such maps, plats and subdivisions
submitted for approval to the county board. The fees
authorized by this Section are to be paid into the general
corporate fund of the county by the party desiring to have
the plat approved.
No officer designated by a county board for the approval
of plats shall engage in the business of surveying, and no
map, plat or subdivision shall be received for record or have
any validity which has been prepared by or under the
direction of such plat officer.
It is the intention of this amendatory Act of 1990 to
repeal the language added to Section 25.09 of "An Act to
revise the law in relation to counties", approved March 31,
1874, by P.A. 86-614, Section 25.09 of that Act being the
predecessor of this Section.
(Source: P.A. 90-558, eff. 12-12-97; 91-328, eff. 1-1-00.)
(55 ILCS 5/5-1123)
Sec. 5-1123. Builder or developer cash bond or other
surety.
(a) A county may not require a cash bond, irrevocable
letter of credit, surety bond, or letter of commitment issued
by a bank, savings and loan association, surety, or insurance
company from a builder or developer to guarantee completion
of a project improvement when the builder or developer has
filed with the county clerk a current, irrevocable letter of
credit, surety bond, or letter of commitment, issued by a
bank, savings and loan association, surety, or insurance
company, deemed good and sufficient by the county accepting
such security, in an amount equal to or greater than 110% of
the amount of the bid on each project improvement. A builder
or developer has the option may elect to utilize a cash bond,
an irrevocable letter of credit, surety bond, or letter of
commitment issued by a bank, savings and loan association,
surety, or insurance company, deemed good and sufficient by
the county, to satisfy any cash bond requirement established
by a county. The county must approve and deem a surety or
insurance company good and sufficient for the purposes set
forth in this Section if the surety or insurance company is
authorized by the Illinois Department of Insurance to sell
and issue sureties in the State of Illinois.
(b) If a county receives a cash bond, irrevocable letter
of credit, or surety bond from a builder or developer to
guarantee completion of a project improvement, the county
shall (i) register the bond under the address of the project
and the construction permit number and (ii) give the builder
or developer a receipt for the bond. The county shall
establish and maintain a separate account for all cash bonds
received from builders and developers to guarantee completion
of a project improvement.
(c) The county shall refund a cash bond to a builder or
developer, or release the irrevocable letter of credit or
surety bond, within 60 days after the builder or developer
notifies the county in writing of the completion of the
project improvement for which the bond was required. For
these purposes, "completion" means that the county has
determined that the project improvement for which the bond
was required is complete or a licensed engineer or licensed
architect has certified to the builder or developer and the
county that the project improvement has been completed to the
applicable codes and ordinances. The county shall pay
interest to the builder or developer, beginning 60 days after
the builder or developer notifies the county in writing of
the completion of the project improvement, on any bond not
refunded to a builder or developer, at the rate of 1% per
month.
(d) A home rule county may not require or maintain cash
bonds, irrevocable letters of credit, surety bonds, or other
adequate securities from builders or developers in a manner
inconsistent with this Section. This Section supercedes and
controls over other provisions of this Code as they apply to
and guarantee completion of a project improvement that is
required by the county. This Section is a denial and
limitation under subsection (i) of Section 6 of Article VII
of the Illinois Constitution on the concurrent exercise by a
home rule county of powers and functions exercised by the
State.
(Source: P.A. 89-518, eff. 1-1-97; 90-14, eff. 7-1-97;
90-558, eff. 12-12-97.)
Section 15. The Illinois Municipal Code is amended by
changing Sections 11-12-8 and 11-39-3 as follows:
(65 ILCS 5/11-12-8) (from Ch. 24, par. 11-12-8)
Sec. 11-12-8. Compliance of plat with map; designation of
public lands; approval; bond; order; failure to act upon
plat. The corporate authorities of the municipality shall
determine whether a proposed plat of subdivision or
resubdivision complies with the official map. To secure such
determination, the person requesting the subdivision or
resubdivision shall file four copies of a plat thereof with
the clerk of the municipality, and shall furnish therewith
four copies of all data necessary to show compliance with all
applicable municipal regulations and shall make application
for preliminary or final approval of the proposed plat.
Whenever the reasonable requirements provided by the
ordinance including the official map shall indicate the
necessity for providing for a school site, park site, or
other public lands within any proposed subdivision for which
approval has been requested, and no such provision has been
made therefor, the municipal authority may require that lands
be designated for such public purpose before approving such
plat. Whenever a final plat of subdivision, or part thereof,
has been approved by the corporate authorities as complying
with the official map and there is designated therein a
school site, park site or other public land, the corporate
authorities having jurisdiction of such use, be it a school
board, park board or other authority, such authority shall
acquire the land so designated by purchase or commence
proceedings to acquire such land by condemnation within one
year from the date of approval of such plat; and if it does
not do so within such period of one year, the land so
designated may then be used by the owners thereof in any
other manner consistent with the ordinance including the
official map and the zoning ordinance of the municipality.
The corporate authorities may by ordinance provide that a
plat of subdivision may be submitted initially to the plan
commission for preliminary approval. The application for
preliminary approval shall show location and width of
proposed streets and public ways, shall indicate proposed
location of sewers and storm drains, proposed dedication of
public grounds, if any, lot sizes, proposed easements for
public utilities, and proposed method of sewage and waste
disposal, but need not contain specifications for proposed
improvements.
The plan Commission shall approve or disapprove the
application for preliminary approval within 90 days from the
date of the application or the filing by the applicant of the
last item of required supporting data, whichever date is
later, unless such time is extended by mutual consent. If
such plat is disapproved, then within said 90 days the plan
commission shall furnish to applicant in writing a statement
setting forth the reason for disapproval and specifying with
particularity the aspects in which the proposed plat fails to
conform to the ordinances including official map. If such
plat is approved the corporate authority shall accept or
reject said plat within 30 days after its next regular stated
meeting following the action of the plan commission.
Preliminary approval shall not qualify a plat for recording.
Application for final approval of a plat shall be made
not later than one year after preliminary approval has been
granted. This application must be supported by such drawings,
specifications and bond as may be necessary to demonstrate
compliance with all requirements of this statute and such
regulations as the corporate authorities may provide by
ordinance under authority of this statute. This Section is
subject to the provisions of Section 11-39-3 of this Code.
The applicant may elect to have final approval of a
geographic part or parts of the plat that received
preliminary approval, and may delay application for approval
of other parts until a later date or dates beyond one year
with the approval of the municipal authorities; provided, all
facilities required to serve the part or parts for which
final approval is sought have been provided. In such case
only such part or parts of the plat as have received final
approval shall be recorded.
When a person submitting a plat of subdivision or
resubdivision for final approval has supplied all drawings,
maps and other documents required by the municipal ordinances
to be furnished in support thereof, and if all such material
meets all municipal requirements, the corporate authorities
shall approve the proposed plat within 60 days from the date
of filing the last required document or other paper or within
60 days from the date of filing application for final
approval of the plat, whichever date is later. The applicant
and the corporate authorities may mutually agree to extend
the 60 day period.
Except as provided in Section 3 of the Public
Construction Bond Act, the corporate authorities may provide
that any person, firm or corporation seeking approval of a
subdivision or resubdivision map or plat shall post a good
and sufficient cash bond, irrevocable letter of credit, or
surety bond with the municipal clerk in a penal sum
sufficient to cover the estimate made by the municipal
engineer, or other authorized person, of expenditures,
including but not limited to reasonable inspection fees to be
borne by the applicant, necessary to conform to the
requirements established and conditioned upon completion of
said requirements in a reasonable time. The corporate
authorities may, by ordinance, prescribe the form of the cash
bond, irrevocable letter of credit, or surety bond and may
require surety to be approved by the corporate authorities;
provided, that a municipality may permit the depositing of
cash or other security acceptable to the corporate
authorities, to complete the improvements required in lieu of
a bond if it shall so provide by ordinance; and further
provided, that no bond or security shall be required to be
filed until the corporate authorities have approved the plat
in all other respects and have notified the applicant of such
approval. If the corporate authorities require a cash bond,
letter of credit, surety, or any other method to cover the
costs and expenses and to insure completion of the
requirements If the corporate authorities require a cash
bond, the requirements requirement shall be subject to the
provisions of Section 11-39-3 of this Code.
If the preliminary or final plat is approved, the
municipal clerk shall attach a certified copy of the order or
resolution of approval to a copy of the plat. If the proposed
plat is disapproved, the order or resolution shall state the
reasons for the disapproval, specifying with particularity
the aspects in which the proposed plat fails to conform to
the official map. A copy of the order or resolution shall be
filed in the office of the municipal clerk.
If the corporate authorities fail to act upon the final
plat within the time prescribed the applicant may, after
giving 5 days written notice to the corporate authorities,
file a complaint for summary judgment in the circuit court
and upon showing that the corporate authorities have failed
to act within the time prescribed the court shall enter an
order authorizing the recorder to record the plat as finally
submitted without the approval of the corporate authorities.
A plat so recorded shall have the same force and effect as
though that plat had been approved by the corporate
authorities. If the corporate authorities refuse to act upon
the final plat within the time prescribed and if their
failure to act thereon is wilful, upon such showing and upon
proof of damages the municipality shall be liable therefor.
(Source: P.A. 90-558, eff. 12-12-97; 91-328, eff. 1-1-00.)
(65 ILCS 5/11-39-3)
Sec. 11-39-3. Builder or developer cash bond or other
surety.
(a) A municipality may not require a cash bond,
irrevocable letter of credit, surety bond, or letter of
commitment issued by a bank, savings and loan association,
surety, or insurance company from a builder or developer to
guarantee completion of a project improvement when the
builder or developer has filed with the municipal clerk a
current, irrevocable letter of credit, surety bond, or letter
of commitment issued by a bank, savings and loan association,
surety, or insurance company, deemed good and sufficient by
the municipality accepting such security, in an amount equal
to or greater than 110% of the amount of the bid on each
project improvement. A builder or developer has the option
may elect to utilize a cash bond, an irrevocable letter of
credit, surety bond, or letter of commitment, issued by a
bank, savings and loan association, surety, or insurance
company, deemed good and sufficient by the municipality, to
satisfy any cash bond requirement established by a
municipality. Except for a municipality or county with a
population of 1,000,000 or more, the municipality must
approve and deem a surety or insurance company good and
sufficient for the purposes set forth in this Section if the
surety or insurance company is authorized by the Illinois
Department of Insurance to sell and issue sureties in the
State of Illinois.
(b) If a municipality receives a cash bond, irrevocable
letter of credit, or surety bond from a builder or developer
to guarantee completion of a project improvement, the
municipality shall (i) register the bond under the address of
the project and the construction permit number and (ii) give
the builder or developer a receipt for the bond. The
municipality shall establish and maintain a separate account
for all cash bonds received from builders and developers to
guarantee completion of a project improvement.
(c) The municipality shall refund a cash bond to a
builder or developer, or release the irrevocable letter of
credit or surety bond within 60 days after the builder or
developer notifies the municipality in writing of the
completion of the project improvement for which the bond was
required. For these purposes, "completion" means that the
municipality has determined that the project improvement for
which the bond was required is complete or a licensed
engineer or licensed architect has certified to the builder
or developer and the municipality that the project
improvement has been completed to the applicable codes and
ordinances. The municipality shall pay interest to the
builder or developer, beginning 60 days after builder or
developer notifies the municipality in writing of the
completion of the project improvement, on any bond not
refunded to a builder or developer, at the rate of 1% per
month.
(d) A home rule municipality may not require or maintain
cash bonds, irrevocable letters of credit, surety bonds, or
letters of commitment issued by a bank, savings and loan
association, surety, or insurance company from builders or
developers in a manner inconsistent with this Section. This
Section supercedes and controls over other provisions of this
Code as they apply to and guarantee completion of a project
improvement that is required by the municipality, regardless
of whether the project improvement is a condition of
annexation agreements. This Section is a denial and
limitation under subsection (i) of Section 6 of Article VII
of the Illinois Constitution on the concurrent exercise by a
home rule municipality of powers and functions exercised by
the State.
(Source: P.A. 89-518, eff. 1-1-97; 90-558, eff. 12-12-97.)
Passed in the General Assembly May 30, 2001.
Approved August 23, 2001.
Effective January 01, 2002.
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