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91_SB0941ham003
LRB9106232JMmbam01
1 AMENDMENT TO SENATE BILL 941
2 AMENDMENT NO. . Amend Senate Bill 941 by replacing
3 the title with the following:
4 "AN ACT to amend the Local Governmental and Governmental
5 Employees Tort Immunity Act by changing Section 9-107."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Local Governmental and Governmental
9 Employees Tort Immunity Act is amended by changing Section
10 9-107 as follows:
11 (745 ILCS 10/9-107) (from Ch. 85, par. 9-107)
12 Sec. 9-107. Tax levy. A local public entity may
13 annually levy or have levied on its behalf taxes upon all
14 taxable property within its territory at a rate that will
15 produce a sum that will be sufficient to: (i) pay the cost of
16 insurance, individual or joint self-insurance (including
17 reserves thereon), including all operating and administrative
18 costs and expenses directly associated therewith, claims
19 services and risk management directly attributable to loss
20 prevention and loss reduction, legal services directly
21 attributable to the insurance, self-insurance, or joint
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1 self-insurance program, and educational, inspectional, and
2 supervisory services directly relating to loss prevention and
3 loss reduction, participation in a reciprocal insurer as
4 provided in Sections 72, 76, and 81 of the Illinois Insurance
5 Code, or participation in a reciprocal insurer, all as
6 provided in settlements or judgments under Section 9-102,
7 including all costs and reserves directly attributable to
8 being a member of an insurance pool, under Section 9-103;
9 (ii) pay the costs of and principal and interest on bonds
10 issued under Section 9-105; (iii) pay judgments and
11 settlements under Section 9-104; and (iv) discharge
12 obligations under Section 34-18.1 of The School Code, as now
13 or hereafter amended, and to pay the cost of risk management
14 programs. Provided it complies with any other applicable
15 statutory requirements, the local public entity may
16 self-insure and establish reserves for expected losses for
17 any liability or loss for which the local public entity is
18 authorized to levy or have levied on its behalf taxes for the
19 purchase of insurance or the payment of judgments or
20 settlements under this Section. The decision of the board to
21 establish a reserve shall be based on reasonable actuarial or
22 insurance underwriting evidence and subject to the limits and
23 reporting provisions in Section 9-103.
24 Funds raised pursuant to this Section shall only be used
25 for the purposes specified in this Act, including protection
26 against and reduction of any liability or loss described
27 hereinabove and under Federal or State common or statutory
28 law, the Workers' Compensation Act, the Workers' Occupational
29 Diseases Act and the Unemployment Insurance Act. Funds
30 raised pursuant to this Section may be invested in any manner
31 in which other funds of local public entities may be invested
32 under Section 2 of the Public Funds Investment Act. Interest
33 on such funds shall be used only for purposes for which the
34 funds can be used or, if surplus, must be used for abatement
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1 of property taxes levied by the local taxing entity.
2 A local public entity may enter into intergovernmental
3 contracts with a term of not to exceed 12 years for the
4 provision of joint self-insurance which contracts may include
5 an obligation to pay a proportional share of a general
6 obligation or revenue bond or other debt instrument issued by
7 a local public entity which is a party to the
8 intergovernmental contract and is authorized by the terms of
9 the contract to issue the bond or other debt instrument.
10 Funds due under such contracts shall not be considered debt
11 under any constitutional or statutory limitation and the
12 local public entity may levy or have levied on its behalf
13 taxes to pay for its proportional share under the contract.
14 Funds raised pursuant to intergovernmental contracts for the
15 provision of joint self-insurance may only be used for the
16 payment of any cost, liability or loss against which a local
17 public entity may protect itself or self-insure pursuant to
18 Section 9-103 or for the payment of which such entity may
19 levy a tax pursuant to this Section, including tort judgments
20 or settlements, costs associated with the issuance,
21 retirement or refinancing of the bonds or other debt
22 instruments, the repayment of the principal or interest of
23 the bonds or other debt instruments, the costs of the
24 administration of the joint self-insurance fund, consultant,
25 and risk care management programs or the costs of insurance.
26 Any surplus returned to the local public entity under the
27 terms of the intergovernmental contract shall be used only
28 for purposes set forth in subsection (a) of Section 9-103 and
29 Section 9-107 or for abatement of property taxes levied by
30 the local taxing entity.
31 Any tax levied under this Section shall be levied and
32 collected in like manner with the general taxes of the entity
33 and shall be exclusive of and in addition to the amount of
34 tax that entity is now or may hereafter be authorized to levy
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1 for general purposes under any statute which may limit the
2 amount of tax which that entity may levy for general
3 purposes. The county clerk of the county in which any part of
4 the territory of the local taxing entity is located, in
5 reducing tax levies under the provisions of any Act
6 concerning the levy and extension of taxes, shall not
7 consider any tax provided for by this Section as a part of
8 the general tax levy for the purposes of the entity nor
9 include such tax within any limitation of the percent of the
10 assessed valuation upon which taxes are required to be
11 extended for such entity.
12 With respect to taxes levied under this Section, either
13 before, on, or after the effective date of this amendatory
14 Act of 1994:
15 (1) Those taxes are excepted from and shall not be
16 included within the rate limitation imposed by law on
17 taxes levied for general corporate purposes by the local
18 public entity authorized to levy a tax under this
19 Section.
20 (2) Those taxes that a local public entity has
21 levied in reliance on this Section and that are excepted
22 under paragraph (1) from the rate limitation imposed by
23 law on taxes levied for general corporate purposes by the
24 local public entity are not invalid because of any
25 provision of the law authorizing the local public
26 entity's tax levy for general corporate purposes that may
27 be construed or may have been construed to restrict or
28 limit those taxes levied, and those taxes are hereby
29 validated. This validation of taxes levied applies to all
30 cases pending on or after the effective date of this
31 amendatory Act of 1994.
32 (3) Paragraphs (1) and (2) do not apply to a
33 hospital organized under Article 170 or 175 of the
34 Township Code, under the Town Hospital Act, or under the
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1 Township Non-Sectarian Hospital Act and do not give any
2 authority to levy taxes on behalf of such a hospital in
3 excess of the rate limitation imposed by law on taxes
4 levied for general corporate purposes. A hospital
5 organized under Article 170 or 175 of the Township Code,
6 under the Town Hospital Act, or under the Township
7 Non-Sectarian Hospital Act is not prohibited from levying
8 taxes in support of tort liability bonds if the taxes do
9 not cause the hospital's aggregate tax rate from
10 exceeding the rate limitation imposed by law on taxes
11 levied for general corporate purposes.
12 Revenues derived from such tax shall be paid to the
13 treasurer of the local taxing entity as collected and used
14 for the purposes of this Section and of Section 9-102,
15 9-103, 9-104 or 9-105, as the case may be. If payments on
16 account of such taxes are insufficient during any year to
17 meet such purposes, the entity may issue tax anticipation
18 warrants against the current tax levy in the manner provided
19 by statute.
20 (Source: P.A. 88-545; 88-692, eff. 2-4-95; 89-150, eff.
21 7-14-95.)".