Public Act 102-0740
 
SB1571 EnrolledLRB102 12624 AWJ 17963 b


  
    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 Municipal Code is amended  by 
changing Sections 11-10-1 and 11-10-2 and by adding Sections 
11-10-0.01 and 11-10-2.5 as follows:
 
    (65 ILCS 5/11-10-0.01 new)
    Sec. 11-10-0.01. Short title. This Division may be cited 
as the Foreign Fire Insurance License Fee Act.
 



    (65 ILCS 5/11-10-1)  (from Ch. 24, par. 11-10-1)



    Sec. 11-10-1. (a) In each municipality or fire protection 
district, whether
incorporated under a general or special law, 
which has a fire department
established and maintained by 
municipal or fire protection district
ordinances, every 
corporation, company, and association which is not

incorporated under the laws of this state and which is engaged 
in effecting
fire insurance in the municipality or fire 
protection district, shall pay
to the foreign fire insurance 
board or to the secretary of the fire
protection district for 
the maintenance, use, and benefit of the fire
department 
thereof, a sum of not exceeding 2% of the gross receipts 
received
from fire insurance upon property situated within the 
municipality or
district.

    Each municipality and fire protection district may 
prescribe by
ordinance the rate of the tax or license fee to be 
paid, but this rate
shall not exceed the rate specified in this 
section. Each designated
corporation, company, and association 
shall pay the sum at the rate so prescribed by this subsection,

upon the amount of all premiums which have been received 
during the year
ending on every first day of July for all fire 
insurance effected or agreed
to be effected on property 
situated within the municipality or fire
protection district, 
by that corporation, company, or association
respectively.

    Every person who acts in any specified municipality or 
fire protection
district as agent, or otherwise, on behalf of 
a designated corporation,
company, or association, shall 
render to the treasurer of the foreign fire insurance board or 
secretary of the fire
protection district, on or before the 
fifteenth day of July of each year, a
full and true account, 
verified by his oath, of all of the premiums which,
during the 
year ending on the first day of July preceding the report, were

received by him, or by any other person for him on behalf of 
that
corporation, company, or association. He shall specify in 
this report the
amounts received for fire insurance, and he 
shall pay to the treasurer of
the foreign fire insurance 
board, or to the secretary of the fire protection district, or 
to the treasurer's or secretary's designee, at
the time of 
rendering this report, the sum amount as determined by the 
rate
fixed by this subsection by the ordinance of the 
municipality or fire protection district for
which his 
corporation, company, or association is accountable under this

section and the ordinance.

    If this account is not rendered on or before the fifteenth 
day of July
of each year, or if the sum due remains unpaid 
after that day, it shall be
unlawful for any corporation, 
company, or association, so in default, to
transact any 
business in the municipality or fire protection district until

the sum due has been fully paid. But this provision shall not 
relieve any
corporation, company, or association from the 
payment of any loss upon any
risk that may be taken in 
violation of this requirement.

    The amount of this tax or license fee may be recovered from 
the
corporation, company, or association, or any third party 
which owes it, or from its agent, by
an action brought by a 
foreign fire insurance board in the name and for the use of the 
municipality or fire
protection district as for money had and 
received.

    The foreign fire insurance board municipal comptroller, if 
any, and if not, then the municipal clerk
or the secretary of 
the fire protection district, or the board's or secretary's 
authorized designee, may examine the books,
records, and other 
papers and documents of a designated agent, corporation,

company, or association for the purpose of verifying the 
correctness of the
report of the amounts received for fire 
insurance.

    This subsection is section shall not be applicable to 
receipts from contracts of
marine fire insurance, even though 
they include insurance against fire, where
the premium for the 
fire insurance is not separately specified.
    (b) A foreign fire insurance board aggrieved by a 
violation of this Section may file suit in the Circuit Court in 
the county where the alleged violation occurred.
    (c) The regulation of a foreign fire insurance board and 
its license fees are exclusive powers and functions of the 
State. A home rule municipality may not regulate a foreign 
fire insurance board and its license fees. This Section is a 
denial and limitation of home rule powers and functions under 
subsection (h) of Section 6 of Article VII of the Illinois 
Constitution. 

(Source: P.A. 95-807, eff. 8-12-08.)

 



    (65 ILCS 5/11-10-2)  (from Ch. 24, par. 11-10-2)


    Sec. 11-10-2. (a) A department foreign fire insurance 
board shall be created by and among the sworn members of within 
the fire department of each municipality with fewer than 
500,000 inhabitants that has an organized fire department. The 
board shall consist of 7 trustees; the fire chief, who shall 
hold office by virtue of rank, and 6 members, who shall be 
elected at large by the sworn members of the department. If 
there is an insufficient number of candidates to fill all 
these positions, the number of board members may be reduced, 
but not to fewer than 3 trustees.  All sworn members of the 
department shall be eligible to be elected as
officers of the 
department foreign fire insurance board. The members of this 
board shall annually elect officers. These officers
shall be a 
chairman, and a treasurer, and any other officers deemed 
necessary by the board. The members trustees of the department 
foreign fire insurance board shall make all needful rules and

regulations with respect to the department foreign fire 
insurance board and
the management of the funds money to be 
paid appropriated to the board. The foreign fire insurance 
board may establish, manage, and maintain an account for the 
holding and expenditure of all funds paid to the board. The 
foreign fire insurance board may contract for the purchase of 
goods and services using funds paid to the board.  Contracting 
for services includes, but is not limited to, the procurement 
and payment of all accounting, legal, collection, or other 
professional services deemed by the board to be necessary to 
the execution of its duties under this Division using funds 
paid to the board.  The foreign fire insurance board may sue all 
parties necessary to enforce its rights under this Section.  
The officers of the department foreign fire insurance board

shall develop and maintain a listing of those items that the 
board feels are
appropriate
expenditures under this Act.  The 
treasurer of the department foreign
fire insurance board shall 
give a sufficient bond to the municipality
in which the fire 
department is organized. This bond shall be approved by
the 
mayor or president, as the case may be, conditioned upon the 
faithful
performance by the treasurer of his or her duties 
under the ordinance and
the rules and regulations provided for 
in this section. The treasurer
of the department foreign fire 
insurance board shall receive the funds paid as provided in 
Section 1
appropriated money and shall pay out the funds money 
upon the
order of the department foreign fire insurance board 
for the
maintenance, use, and benefit of the department or as 
otherwise permitted by this Division. These
As part of the 
annual municipal audit, these funds shall be audited to verify

that the funds have been expended by that board only for the 
maintenance, use, and benefit of the
department using funds 
paid to the board.  Contracting for services includes, but is 
not limited to, the procurement and payment of all accounting, 
legal, collection, or other professional services deemed by 
the board to be necessary to the execution of its duties under 
this Division using funds paid to the board.

    Disputes between a fire chief and the remaining members of 
a foreign fire insurance board concerning whether any 
expenditure of funds by the board is for the maintenance, use, 
or benefit of the department or for any other purpose 
authorized by this Division shall be resolved through binding 
arbitration, pursuant to a written arbitration agreement 
established by the foreign fire insurance board, that is 
recognized under the Uniform Arbitration Act.  Arbitrations 
held pursuant to a written arbitration agreement are the 
exclusive remedy available for resolving such disputes. 
    (b) As used in this subsection, "active member" means a 
member of the Chicago Fire Department who is not receiving a 
disability pension, retired, or a deferred pensioner of the 
Firemen's Annuity and Benefit Fund of Chicago.
    A department foreign fire insurance board is created 
within the Chicago Fire Department.  The board shall consist of 
7 trustees who shall be initially elected on or before January 
1, 2019: the fire commissioner, who shall hold office by 
virtue of rank, and 6 elected trustees, who shall be elected at 
large by the sworn members of the department. If there is an 
insufficient number of candidates seeking election to each 
vacant trustee position, the number of board members is 
reduced to 5 trustees, including the fire commissioner of the 
department, until the next election cycle when there are 
enough active members seeking election to fill all 7 member 
seats. All active members are eligible to be elected as 
trustees of the department foreign fire insurance board. Of 
the trustees first elected, 3 trustees shall be elected to a 
2-year term and 3 trustees shall be elected to a 3-year term.  
After the initial election, a trustee shall be elected for a 
term of 3 years.  If a member of the board resigns, is removed, 
or is unable to continue serving on the board, the vacancy 
shall be filled by special election of the active members or, 
in the case of a vacancy that will exist for fewer than 180 
days until the term expires, by appointment by majority vote 
of the members of the board.
    The members of the board shall annually elect officers. 
These officers shall be a chairman, treasurer, and secretary. 
The trustees of the board shall make rules and regulations 
with respect to the board and the management of the money 
appropriated to the board.  The officers of the board shall 
develop and maintain a listing of those items that the board 
believes are appropriate expenditures under this subsection. 
The treasurer of the board shall give a sufficient bond to the 
City of Chicago. The cost of the bond shall be paid out of the 
moneys in the board's fund. The bond shall be conditioned upon 
the faithful performance by the treasurer of his or her duties 
under the rules and regulations provided for in this 
subsection. The treasurer of the board shall receive the 
appropriated proceeds and shall disburse the proceeds upon the 
order of the board for the maintenance, use, and benefit of the 
department consistent with this subsection. As part of the 
annual municipal audit, these funds shall be audited to verify 
that the funds have been expended lawfully by the board 
consistent with this subsection. 
    Within 30 days after receipt of any foreign fire insurance 
proceeds by the City of Chicago, the City of Chicago shall 
transfer the proceeds to the board by depositing the proceeds 
into an account determined by the board, except that if the 
effective date of this amendatory Act of the 100th General 
Assembly is after July 31, 2018, then the City of Chicago 
shall, for budget year 2019 only, transfer only 50% of the 
proceeds to the board.  Notwithstanding any other provision of 
law: 50% of the foreign fire insurance proceeds received by 
the board shall be used for the maintenance, use, benefit, or 
enhancement of fire stations or training facilities used by 
the active members of the fire department; 25% of the foreign 
fire insurance proceeds received by the board shall be used 
for the maintenance, use, benefit, or enhancement of emergency 
response vehicles, tools, and equipment used by the active 
members of the department; and 25% of the foreign fire 
insurance proceeds received by the board shall be used for the 
maintenance and enhancement of the department and for the use 
and benefit of the active members of the department in a manner 
otherwise consistent with this subsection. Foreign fire 
insurance proceeds may not be used to purchase, maintain, or 
enhance personal property of a member of the department, 
except for personal property used in the performance of his or 
her duties or training activities. 
    (c) The provisions of this Section shall be the exclusive 
power of the
State, pursuant to subsection (h) of Section 6 of 
Article VII of the
Constitution.

(Source: P.A. 100-656, eff. 7-31-18.)

 
    (65 ILCS 5/11-10-2.5 new)
    Sec. 11-10-2.5. Collection of licensing fees. A foreign 
fire insurance board created under this Division has the sole 
and exclusive authority to collect all licensing fees required 
to be paid by foreign fire insurance companies, corporations, 
associations, or third parties under this Division. This 
authority includes the right to designate a representative or 
agent authorized to collect such fees on their behalf.
    A board created pursuant to subsection (a) of Section 2 
that does not collect licensing fees on its own accord, or that 
does not designate an authorized representative or agent to 
collect the fees on their behalf, shall have all fees 
collected on its behalf by a statewide organization of 
municipalities recognized under Section 1-8-1. 
    Licensing fees collected from foreign fire insurance 
companies, corporations, associations, or third parties under 
a representative or agent authorized to do so by a foreign fire 
insurance board or by a statewide organization of 
municipalities recognized under Section 1-8-1 shall be paid 
promptly and directly to the treasurer of the foreign fire 
insurance board, less reasonable costs and expenses associated 
with the collection of the fees, as agreed to by the board.
 
 
    Section 99. Effective date. This Act takes effect January 
1, 2023.