STUART

Legal & Legislative Notes

by Robert A. Stuart General Counsel

ASSOCIATION LEGISLATIVE PROGRAM RECEIVING FAVORABLE CONSIDERATION IN COMMITTEE HEARINGS.

Faced with a staggering mountain of bills (almost 4500) the greater number of which were filed within the last week prior to the final day for filing, on April 19, both Houses of the General Assembly have been meeting in general session and committee hearings between 12 and 18 hours each day during the past two weeks. With May 2 set as the final day for hearing bills in Committee in the house of originiation the greater portion of the week of May 5 will be devoted to work on the floor in order to act on all bills in the house in which the bills were introduced.

As of this writing, all bills in the Association legislation program have reached the floor of either the House or the Senate, and the greater number are presently on passage stage.

While H.B. 1779 was referred to an Interim Study Committee as a result of the hearing before the Revenue Committee in the House (which effectively killed the bill) the identical bill in the Senate (S.B. 880) was voted out of the Revenue Committee with a recommendation of "To Pass" and is presently on third reading in the Senate. These bills which were introduced by Representative Ronald K. Hoffman in the House and Senator Harris W. Fawell in the Senate represent the most significant and important legislation relating to park districts in Illinois since the codefication of the park district in 1951. Senate Bill 880, if passed, will create a "Park Districts Distribution Fund" in an amount equal to 1/48th of the net revenue realized from the Illinois income tax from which fund monthly distribution will be made by the Department of Local Government Affairs to each Park District based upon the population of the district. At the hearing before the Senate Revenue Committee amendments to the bill as originally drawn to include the Chicago Park District as a participant in the Fund and to base the formula for distribution upon the population of those persons residing within park districts rather than the total population of the State, were adopted. It is estimated that the fund will total approximately 30 to 32 million dollars annually and produce a per capita distribution to each district of between $3 and $4.

The importance of this legislation is obvious. Park Districts in Illinois are charged with the responsibility of providing parks and recreation programs for the citizens of Illinois in more than 350 local and metropolitan areas throughout the State. The Illinois Supreme Court has repeatedly held that as subdivisions of State government and performing a governmental function the facilities and programs of each park district are available to each citizen of Illinois regardless of whether they reside within a local park district. While the demand in these communities for additional park and open space areas and recreational programs for all residents, but particularly for the youth and the senior citizens, is continually increasing, since the abolition of the personal property tax, the numerous exemptions granted by the General Assembly to real property owners since 1970, and the present trend of our national economy, the tax revenues available to park districts have been sharply curtailed. A survey conducted by the Association has indicated that between 13% and 30% of the total tax revenues formerly available to park districts has been lost in the past four years. To date, no legislative effort to replace these lost revenues has been made.

In many districts today, it is becoming difficult to find sufficient funds to maintain park and recreational facilities. Many of the recreational programs which are so vital to our young people and elder citizens, as well as to the economic health and growth of the community are having to be seriously curtailed or in numerous instances eliminated.

Senate Bill 880 is a measure designed primarily to replace those lost revenues. It is not designed for the purpose of providing substantially additional revenues to park districts above the level of the past years. Its provisions are similar to those set forth in the State Revenue Sharing statute which created the "Local Government Distributive Fund," a fund equal to 1/12th of the net revenue realized from the Illinois Income Tax Act, and which funds are distributed monthly to municipalities and counties upon the basis of population. The bill, if passed, would in no way affect the amount presently being distributed to municipalities and counties; it would not create an additional tax nor increase taxes upon the local taxpayer; it would not result in greatly increased administrative costs to the State in that it would be administered by the Department of Local Government Affairs in the same manner and in conjunction with the administration of the Local Government Distributive Fund.

Senate Bill 880, which has the full support of The Taxpayers Federation of Illinois, is a practical solution to furnishing lost revenues to park districts which are providing a most vital governmental service to the citizens of the State.

Of particular importance to all park districts are H.B. 1281 and S.B. 886, both of which are on second reading in their respective houses. If passed, these bills will eliminate from the provisions of Section 5.9 of The Park District Code the date of "July 1, 1973," which date has no particular significance, and will permit the levy of a tax of .025 for the purpose of "the organization, maintenance of, or contracting for a police system" by any park district. Such a levy under the proposed amendment would not require a referendum.

The Association program is receiving excellent cooperative support from its member districts. Representatives of twenty-four districts attended the Committee hearings on S.B. 880 and H.B. 1779, including Arlington Heights, Beardstown, Blue Island, Champaign, Chicago Heights, Central of Maywood, Decatur, Dolton, Glencoe, Geneva,

Illinois Parks and Recreation 8 May/June, 1975

Highland Park, Joliet, Kewanee, Lockport Township, Markham, Mt. Prospect, Oak Lawn, Oak Forest, Peoria, Posen, Rockford, St. Charles, Waukegan, West Chicago and Winnetka. Such continued support is essential to a successful legislative program.

The following is a present status report of pending legislation of interest to all park districts:

HOUSE BILLS

H.B. 152—Juckett—Amends park district code; authorizes park district, by referendum or board resolution, to increase size of board from 5 to 7. (Passed House)

H.B. 154—Juckett—Amends park district code; authorizes park district by referendum or board resolution, to reduce term of park commissioners from 6 to 4 years. (3rd Reading /H)

H.B. 506—Geo-Karis—Authorizes park districts to enter into agreements with other governments on swimming pools or artificial ice skating rinks built by the park district with the proceeds of revenue bonds. Agreements give other governments right to use or operation of facility in exchange for payments. (Consent Calendar—3rd Reading/H)

H.B. 689—Leon et al—Amends the Chicago Park Employees' Retirement Board Article of the Illinois Pension Code. Improves single sum death benefit and modifies related contribution requirements. Establishes minimum widows annuity to surviving spouse of employee with 20 or more years of service. Increases pensions of surviving spouses currently receiving annuities. Revises date for commencement of post-retirement increment for retirement annuities. Authorizes compensation of secretary of board. Provides that annuities of surviving spouses are to be charged to the annuity reserve. Effectively immediately. (2nd Reading/H)

H.B. 967—R. K. Hoffman, et al—Amends Revenue Act of 1939 to provide that unimproved real estate set aside for park or recreational purposes is to be treated as "encumbered by a public easement" under certain conditions. In section regarding valuation of real property. (2nd Reading/H)

H.B. 990—Committee on Revenue—Amends Revenue Act sections on assessment of property to change amount of assessment from 50 per cent of fair cash value to 33-1/3 per cent of fair cash value. Other provisions. (39 Pages) (To Second without reference). (Passed House)

H.B. 1281—R. K. Hoffman—Amends Park District Code to authorize levy of a tax if participating in program established under Illinois Police Training Act. (2nd Reading/H)

H.B. 1282—R. K. Hoffman—Authorizes levy of additional tax of .05 per cent for Park Districts to establish and maintain recreational programs. Requires referendum. (3rd Reading/H)

H.B. 1283—R. K. Holfman—Increases from 5 per cent to 7 per cent allowable interest on Park District Bonds. (3rd Reading/H)

H.B. 1289—Hart—Provides that park districts may issue notes for purchase and payment of land for parks or boulevards; (presently only bonds may be issued for such purposes.) (3rd Reading/H)

H.B. 1459—Deavers—Removes from General Assembly and places in county boards the power to appoint trustees in multi-county park districts.

H.B. 1695—Chapman, et al—Allows a park district to improve and repair property as well as purchase it. (On installment contract) (3rd Reading/H)

H.B. 1779 (S.B. 880)—R. K. Hoffman, et al—Provides for distribution of 1/48th of state income tax to park districts on formula based on population. (Interim Study Calendar/ H)

H.B. 1782 (S.B. 881)—R. K. Hoffman, et al—Authorizes per diem for forest preserve district commissioners in exercise of duties by Board action. (2nd Reading/H)

H.B. 1828—Macdonald, et al—Creates Park District Problems Study Committee. (Reassigned to Comm. on Assignments)

H.B. 1829—Macdonald, et al—Appropriates $25,000 for Park District Problems Comsn. (Reassigned to Comm. on Assignments)

H.B. 1859—John Dunn, et al—Amends various acts to provide for members of governing boards of special districts which include territory in more than one county to be proportioned among the counties involved and sets up appointing powers.

H.B. 2062—Dyer, et al—Amends an Act to provide for the creation and management of forest preserve districts. Increases corporate tax rate from .025% to .075%. Allows district to tax for constructing improvements and development of forest and lands at rate not to exceed .025%. Makes other changes.

H.B. 2097—White—Amends Chicago Park District Act to raise permissible tax levy for aquariums and museums to .065 per cent.

H.B. 2098—White, et al—Raises permissible tax levy for aquariums and museums to .065 per cent in districts over 500,000.

H.B. 2191—Reed—Requires administrative head of each special district to register with clerks of counties in which district has territory.

H.B. 2308—Patrick—Bans formation of special districts after 1975.

H.B. 2312—Taylor—Adds severability clause to an Act in relation to the creation maintenance, operation and improvement of the Chicago Park District.

H.B. 2478—Daniels—Authorizes Forest Preserve Districts to acquire land for recycling pollutants and waste-water for agriculture use.

H.B. 2554—Jane Barnes—Removes referendum requirement regarding park district recreation tax; permits tax up to .12 per cent. (Tabled)

H. B. 2596—Satterthwaite—Requires Park boards to appoint either 3 or 5 Judges of election for each polling place. (Cities/H)

H.B. 2604—Chapman—Increases maximum term school property can be leased to another school district, city or body politic to 25 years (presently 10 years). (Elementary Educ/H)

H.B. 2704—Skinner—Authorizes candidates in park district election to appoint challengers or watchers in each polling place. (3rd Reading/H)

H.B. 2821—Patrick—Provides no new units of local government may be created.

H.B. 2823—McPartlin—Converts each special district in the state into a special service area of the most populous government unit within each district.

SENATE BILLS

S.B. 69—Vadalabene—Removes the ten-acre per park restriction from the Act authorizing townships to acquire lands for parks. (Passed Senate)

S.B. 220—Fawell, et al—Amends Park District Code. Deletes required referendum on tax levy for establishment of joint recreational programs for handicapped children, (3rd Reading/S-A w/Backdoor Referendum Provision)

S.B. 221—Fawell, et al—Amends Municipal Code. Deletes required referendum for tax levy for establishment of joint recreational programs for handicapped children. (3rd Reading/S-A w/Backdoor Referendum Provision)

S.B. 222—Fawell, et al—Amends the Park District Code providing a one year limitation period for contesting the annexation of any territory. (Passed Senate)

S. B. 730—Mohr—Creates Illinois Public Employment Relations Act with a board to resolve representation and unfair labor practice disputes. Prohibits strikes by public employees. (22 pages)

Continued on Page 30

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LEGAL & LEGISLATIVE...

Continued from Page 9

S.B. 754—Clarke, et al—Transfers state functions relating to the property tax to the Illinois State Property Tax commission from the Dept. of Local Govt. Affairs. (44 pages).

S.B. 804—Dougherty, et al—Amends Chicago Park District Act to authorize an increase in bonded indebtedness with referendum from 1 1/2 per cent to 2 per cent. Other authorization. (3rd Reading/S)

S.B. 880—Fawell—Creates "Park Districts Distribution Fund" in an amount equal to 1/48 of net revenue realized from Illinois income tax with monthly distribution on basis of population. (3rd Reading/S)

S.B. 881—(H.B. 1782)—Fawell—Authorizes per diem for Forest Preserve Districts by Board resolution. (2nd Reading/S)

S.B. 882—Fawell—Includes securities of federal agencies among authorized investments under act concerning municipal funds. (Comm/Finance/S)

S.B. 884 Fawell—Amends Park District Code to delete 5 per cent interest provision after July 1, 1975. Provides for interest not exceeding 7 per cent per annum. (3rd Reading/ S)

S.B. 885—Fawell—Adds to Park District Code provision for levy of additional tax of .05 per cent for planning recreational programs. Referendum. (3rd Reading/S)

S.B. 886—Fawell—Authorizes levy of a tax if park district is taking part in a program under Illinois Police Training Act. (2nd Reading/S)

S.B. 887—(H.B. 1780)—Fawell—Repeals Sections 3-12 and 3-13 of the Park District Code dealing with consolidation of park district territory and disconnection respectively. (3rd Reading/S)

S.B. 916—Philip—Extends the powers given park district police in certain districts to all park district police. (3rd Reading/S)

S.B. 965—Glass, et al—Allows park districts to reduce terms of commissioners from 6 years to 4 years. (3rd Reading/S)

S.B. 1013 (H.B. 2186)—Fawell—Permits issuance of liquor license to park districts upon application. (2nd Reading/S)

S.B. 1027—(H.B. 2247; H.B. 2492)—Netsch—Creates Local Government Boundary Board composed of 7 members appointed by governor, with power to approve or disapprove new incorporations and boundary adjustments and study existing boundaries.

S.B.1117—Berning—Amends Swimming Pool and Bathing Beach Act to require licensing of contractors thereunder and require at least one operator at pools and beaches.

S.B. 1156—Sommer—Provides that any competitive bidding requirement for any special district is applicable only to purchases and contracts involving an expenditure of $4,000 or more.

S.B. 1178—Berning—Permits forest district boards to regulate, control and license all types of travel on paths, drives and roads under its jurisdiction.

S.B. 1197—Nudelman—Repeals Act enabling forest preserves to repay money received from the sale of defective bonds.

S.B. 1478—Shapiro—Amends municipal retirement, Chicago park district and Chicago sanitary district pensions; removes provisions requiring a reduction in widow's benefits on account of the age differential between spouses.

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RECENT DECISIONS

Karen Smith v The Waukegan Park District et al; 74 CH 110 Circuit Court, Nineteenth Judicial Circuit, Lake County, Illinois:

In a Memorandum opinion filed in the case of Smith v. Waukegan Park District, the Court held that (1) A taxpayer can maintain his action against a public body to enjoin a misuse of property held in trust for the public even though he does not suffer special damage and 2) a park district may not grant preferential treatment to former members of the Board of Commissioners, families of park commissioners or employees or other members of the general public.

In that case, the park district by ordinance and resolution had permitted its commissioners, certain employees and their immediate families to use the facilities of a park district golf course without charging and had created a policy of awarding lifetime family memberships to district golf courses under certain circumstances.

The Court said in its opinion:

Unfortunately for the defendants the Koehler (354 Ill. 347 (1933)) and Drosten (34 Ill. 2d 487 (1966)) cases no longer are the law in Illinois. In 1970 in the case of Paepcke vs. Public Building Commission of Chicago (46 III. 2d 330), the Illinois Supreme Court reconsidered the question of standing to sue in cases of this nature and gave its blessing to what is known as the "Public Trust Doctrine"—to wit that lands owned by Park Districts are held in trust for the equal benefit for all of the people of the state and that the alleged cause of action in such cases is based on the individual's status as a taxpayer and that it is his equitable interest, as a taxpayer, in the property which he claims is being allegedly disposed of or misused that determines his standing to maintain the action and his right to sue does not depend on any injury to his property.

The Court further stated with respect to the substantive issue in the case:

It has long been the law in this state that Park Districts are created for the purpose of establishing, maintaining and governing public parks for the recreation, health and benefit of the general public. And that as to land owned by it, the Park District occupies the position of trustee of said premises holding them in trust for the benefit of the public. The right to use such property is not limited to the citizens of the city or Park District in which such lands are dedicated but the citizens of the state generally have an equal right in them and the proper enjoyment of them. It follows that the facilities of Park Districts such as golf courses, swimming pools, etc., are for the equal benefit of all the people of the state and that Park Districts cannot operate their facilities or permit them to be operated in such a manner that a preferential use thereof is granted to any one person or to any group of persons. See Lincoln Park Traps vs. Chicago Park District, 323 Ill. App. 107 and the authorities cited therein.)

It is obvious in this case that the effect of the ordinances and resolutions of the Waukegan Park District which are in question is to grant a preferential use to a limited group of persons. Past and present Park Board members and their immediate families and certain individuals which the Park Board has designated by name are granted free use of the golf course and its facilities while all other citizens and taxpayers of the state must pay a fee.

It may be that in the carrying out of their duties to supervise the maintenance and operation of a Park Board facility such as a golf course it is advantageous and helpful that a park commissioner actually 'play' the course. This is a legislative decision of the Park Board with which this court cannot properly interfere. No such purpose can in any way be ascertained however, in permitting the free use of the golf course by members of the families of park commissioners, by the attorney or the secretary of the Park Board and their immediate families, by past members of the Park Board and their immediate families or by designated individuals and their immediate families whom the Board wishes to honor for past services. The defendant Park District has no authority to grant preferential treatment to such a group.

Illinois Parks and Recreation 30 May/June, 1975