Legal & Legislative Notes

by Robert A. Stuart General Counsel

FINAL REPORT OF GOVERNOR'S ACTION ON LEGISLATION AFFECTING PARK DISTRICTS

On September 29 Governor Walker completed action on all measures passed by the 1975 Spring Session of the 79th General Assembly. On Wednesday, October 22, the General Assembly convened in its Fall Session at which Session the Illinois lawmakers will consider some 365 bills which were vetoed by the Governor. The most difficult job facing the Legislators will be their consideration of the 63 appropriation bills which were vetoed in whole or in part by the Governor. These vetoes cut more than $350,000,000 from appropriations affecting the General Revenue Fund. The largest portion of this reduction came in the sum of $152,000,000 which, by the Governor's action, was cut from funds appropriated for elementary and secondary education. In view of the serious problems resulting from the status of the State's cash flow the determination of veto overrides in the October-November session has become an extremely difficult and controversial one.

The present State economic situation involving the shortages in the General Revenue Fund will have a serious impact upon the House Revenue Committee's consideration of House Bill 1779 which presently is being studied by the House Revenue Committee's Sub-Committee on Income Tax. While most members of the Sub-Committee, as well as the greater majority of Legislators who have been contacted, appear to be in sympathy with the revenue needs of park districts throughout the State, the State General Revenue Fund as a source of funds for the creation of a proposed "Park District Distribution Fund" in view of the present situation would not appear to be a feasible one at the present time. However, the creation of such a fund, regardless of the amount of revenues to be allocated to it at this time, is of prime importance if park districts are to receive the relief which is so greatly needed. The favorable consideration by the Sub-Committee on Income Tax and the Revenue Committee itself is being diligently sought in the hearings which are being conducted in those Committees. Both Chairman Jack Beaupre, Chairman of the Sub-Committee, and Representative Sam Maragos, Chairman of the Revenue Committee, have been most cooperative in hearing and studying the proposed measure for tax relief submitted through the Illinois Association of Park Districts.

The following is a synopsis of the Governor's final action on other legislative measures affecting park districts in Illinois:

HOUSE BILLS

H.B. 152 (Public Act 79-1031) Juckett—Approved 9/18/75

Amends Section 2-12 of "The Park District Code" (Chap. 105 new paragraph 2-lOa). Authorizes park district by referendum or by board resolution to increase the size of the board from 5 to 7 commissioners. If referendum procedure followed it must comply with the provisions of Section 28-4 of the Election Code. Additional 2 members, if authorized by either board resolution or referendum, must be elected at the next following election held at least 60 days after the date upon which the resolution was adopted or a favorable referendum was held. If 7 member board is created under this Section the number of commissioners may later be reduced to 5 only by referendum.

No action taken under this amendment may affect the terms of any commissioners holding office at the time of a referendum or to be elected within 60 days of the referendum. No provision for appointment prior to election.

H.B. 154—Juckett—Amends Park District Code. Permits reduction of term of park commissioners from 6 to 4 years (see S.B. 965-A).

H.B. 506 (Public Act 79-356) Geo-Karis—Approved 8/7/75

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.

H.B. 689 (Public Act 79-478) Leon, et al—Approved 8/23/75

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.

H.B. 853 (Public Act 79-472) Matijevich—Approved 8/21/75

Creates Township Open Space Act. Permits townships after referendum to establish an open space program, acquire and hold land in a natural state and issue bonds for funding land acquisitions subject to referendum. Excepts bonds from Limitation on Indebtedness Act.

H.B. 854 (Public Act 79-473) Luft, et al—Approved 8/21/75

Amends Illinois Highway Code and State Bikeways Act. Grants Department of Transportation authority to acquire right-of-ways for bikeway purposes.

H.B. 909 (Public Act 79-895) Pierce, et al—Approved 9/10/75

Amends Dram Shop Act and Park District Code. Authorizes the sale or delivery of alcoholic liquors in recreational centers of a park district if there is no municipality within the boundaries of such park district. Such park district shall provide dram shop liability in maximum insurance coverage limits.

H.B. 990 (Public Act 79-703)—Approved 9/3/75

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)

H.B. 1278—Vetoed 7/13/75. Hoffman, et al.

Appropriates $100,000 to the Department of Transportation, Division of Waterways to repair erosion damage on Addison Creek at the Stevenson Park lagoon in Bellwood in Cook County, Effective July 1, 1975. Governor in veto message stated:

"This is a non-budget bill appropriating general revenue funds to repair erosion damage. The repairs involved in this project benefit only one property owner

Illinois Parks and Recreation 8 November/December, 1975

and, therefore, should not be paid for by the State. As a non-budget bill it must be vetoed in order to prevent appropriations from exceeding estimated resources . . ."

H.B. 1289 (Public Act 79-434) Hart—Approved 8/ 14/75

Amends Sections 6-2, 6-4, 6-5, 6-6 of The Park District Code to permit issuance of notes for purchase and payment of land for parks or boulevards (presently only bonds may be issued for such purposes or purchase made on installment contract). Such notes issued are subject to 1/2 of 1% limitation placed upon aggregate outstanding, unpaid balance of all bonds and notes unless approved by referendum.

H.B. 1459 Deavers—Vetoed 9/17/75 (See H.B. 1859).

H.B. 1465 (Public Act 79-955) Deavers—Approved 9/11/75

Amends Counties Act. Provides that personnel employed to provide police protection in park or recreational area owned by county, including areas partly within and partly outside the county, have the powers of police officers, including power of arrest.

H.B. 1695 (Public Act 79-593) Chapman, et al—Approved 8/26/75

Amends Section 8-15 of The Park District Code. Authorizes park district in addition to the power to purchase to improve or repair any real estate, equipment, machinery and other personal property for public purposes under contracts for sale. Limited to installment period of 10 years with interest not to exceed 7% per annum.

H.B. 1782 (Public Act 79-525) Hoftman, et al—Approved 8/25/75

Authorizes per diem for forest preserve district commissioners in exercise of duties by Board action. Increased from $25 to $36.

H.B. 1828 Vetoed 8/29/75 MacDonald, et al.

Creates park district problems study committee. Governor in his veto message stated: "Several legislative leaders have expressed a belief that there are too many commissions whose work could, and should, be carried out by the existing permanent legislative committees. The general subject matter of park district problems can properly be addressed by the standing committees of the House and Senate . . ."

H.B. 1859 (Public Act 79-855) Dunn, et al—Approved 9/9/75

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 set up appointing powers. Affects only Aurora (Fox River Valley Pleasure Driveway and Park District).

H.B. 2097 (Public Act 79-664) White—Approved 8/29/75

Amends Chicago Park District Act to raise permissible tax levy for aquariums and museums to .065 per cent.

H.B. 2098 (Public Act 79-665) White—Approved 8/29/75

Raises permissible tax levy for aquariums and museums to .065 per cent in districts over 500,000.

H.B. 2312 (Public Act 79-1053) Taylor—Approved 9/18/75

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

H.B. 2574 (Public Act 79-541) Palmer—Approved 8/25/75

Amends Section 2-4 and 2-13 of The Park District Code. Provides for the appointment of three persons to act as judges in an election to organize a park district. Authorizes the appointment of either 3 or 5 judges of election for each polling place in other park district elections.

H.B. 2596 (Public Act 79-542) Satterthwaite—Approved 8/25/75

Identical provisions to H.B. 2574.

H.B. 2704 Re-referred by Governor 9/19/75

Authorizes candidates in park district election to appoint challengers or watchers in each polling place. Governor's line veto directs elimination of word "party," inasmuch as park district elections are non-partisan elections.

H.B. 2837 (Public Act 1076) Dyer—Approved 9/22/75

Amends Section 11, Article VI of Dram Shop Act. Authorizes sale and delivery of alcoholic liquors by park districts in buildings of golf courses in connection with the operation of an established food serving facility during times when food is dispensed for consumption upon the premises. Removes requirement that food must be served to customer at a dining table. Permits service of alcoholic beverages across a bar. Does not settle question of whether park district must secure liquor license from municipality or county.

SENATE BILLS

S.B. 69 (Public Act 79-467) Vadalabene—Approved 8/21/75

Amends Township Act to permit township board of auditors to acquire lands without acreage limitation if received as a gift for purposes of maintaining and improving the same as public parks for the free use of the public. Acquisition by purchase or condemnation limited to 10 acres for any one park.

S.B. 220 (Public Act 79-675) Fawell—Approved 9/3/75

Amends Section 5-8 of The Park District Code. Authorizes levy of a tax by park district not to exceed .02% for the purpose of funding the park district's share of expenses incurred under a joint agreement to provide recreational programs for the handicapped under Section 8-1 Ob of the Code. Levy subject to back door referendum. Requires publication of resolution within 15 days after the adoption thereof in a newspaper published and having a general circulation within the district or if no such newspaper then in a newspaper having general criculation in the county or by posting in 3 public places if no such qualifying newspaper. Period for filing petition calling for referendum extended to 30 days following publication. Petition calling for referendum must be filed by at least 5% of the total number of electors voting for park commissioners at the last preceding general park district election, but in no event less than 300 signers. Once approved tax may be levied and collected annually thereafter.

S.B. 221 (Public Act 79-676) Fawell—Approved 9/3/75

Amends Section 11-95-14 of the "Illinois Municipal Code." Authorizes tax levy of .02% by municipality for purpose of funding municipality's share of expense for providing programs under joint agreements for recreational programs for handicapped children. Same back door referendum provision as provided in S.B. 220.

S.B. 222 (Public Act 79-382) Fawell—Approved 8/14/75

Amends Section 3-14 of The Park District Code. Provides for a one year statute of limitations for contesting the annexation of any territory to a park district. This provision will aid park districts materially in cases involving the issuance of bonds and the assessed valuation of annexed territory.

S.B. 804 (Public Act 79-789) Dougherty—Approved 9/5/75

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.

S.B. 881 (Public Act 79-1028) Fawell—Approved 9/18/75

Amends Sections 3 a and 5 of Forest Preserve Act. Authorizes increase in per diem allowance from $25 per day to $36 per day. Amends Section 5 to permit forest preserve district to acquire lands in fee in any district in a county with a population of more than 300,000 to recycle secondary treating of sewage effluents or wastewater.

S.B. 882 (Public Act 79-496) Fawell—Approved 8/25/75

Amends Chapter 146 1/2, Section 3.1. Authorizes

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investment of park district funds which are set aside for use for particular purposes in Treasury notes and other securities issued by any agency of the United States (previously limited to bonds or other interest bearing obligations of the United States or the State of Illinois which were fully insured by the Federal Deposit Insurance Corporation).

S.B. 884 (Public Act 79-688) Fawell—Approved 9/3/75

Amends The Park District Code to authorize payment by park districts of 7% per annum interest on all obligations of the district.

*Note—Bond counsel has raised the question of whether or not the passage of this Bill was effective to increase limitation from 5% to 7% in view of the passage of H.B. 1289. H.B. 1289 contained an amendment to Section 6-2, 6-4, 6-5 and 6-6 and was passed for the purpose of permitting the issuance of notes as well as bonds for the securing of park district obligations. S.B. 884 passed the General Assembly on June 13. H.B. 1289 passed the General Assembly on June 24. The question raised by bond counsel was based upon the fact that H.B. 1289 inadvertently made reference to the 5% interest rate. Inasmuch as the House Bill was passed subsequent to the passage of the Senate measure, a strict construction might provide a basis for the position that the General Assembly reinstated by its latter action the 5% interest rate. Bond counsel and your general counsel are now in agreement that the intent of the Legislature was to increase the limitation to 7% and it is our understanding that no question in that regard is being raised on bonding issues at the present time.

S.B. 885 (Public Act 79-644) Fawell—Approved 8/29/75

Amends the Park District Code to add new Section 5-3a. Authorizes park district to levy additional tax not to exceed .05% for purpose of planning, establishing and maintaining recreational programs. Requires referendum.

*Note—With the addition of this new section a park district may levy a tax of .075% for recreation program without referendum and up to .17% with referendum for such purposes.

S.B. 916 (Public Act 79-348) Philip—Approved 8/7/75

Amends Paragraph 330 a, Chapter 105. Authorizes any park district to establish and maintain a police force. Invests in every member of such police force full authority to arrest any person who "breaks the peace, or who may be found violating any ordinance of a city, town or village, or park district, or any criminal law of the State. Such arrest may be made by any such officer without a warrant when the criminal offense is committed or attempted in his presence or when a criminal offense has, in fact, been committed, and the officer has reasonable ground for belief that the person to be arrested has committed it . . ." In effect, therefore, this amendment gives to the authorized police force of any park district full authority to enforce municipal and park district ordinances and all criminal laws of the State of Illinois.

S.B. 965 (Public Act 79-497) Glass, et al—Approved 8/25/75

Amends Sections 2-12 and 3-8 and adds Section 2-12a to The Park District Code. Authorizes park districts by resolution or by referendum to reduce the terms of park district commissioners from 6 to 4 years. Provides for transition period in the event of change. Applies only to commissioners elected at the first regular park district election held not less than 60 days after the date the proposition was approved at referendum or the adoption of the resolution. No provision is contained which would permit reversion to the 6 year term in the event of favorable action on such referendum or the adoption of resolution.

Amends Section 3-8. Requires park district in annexation by ordinance to serve copy of ordinance on all owners of record of land within the territory being annexed not less than 30 days prior to the effective date of the ordinance. No provision for contest set forth.

S.B. 1178 (Public Act 79-559) Berning—Approved 8/26/75

Permits Forest Preserve District boards to regulate, control and license all types of travel on paths, drives and roads under its jurisdiction.

HOUSE BILL 1779 AND SENATE BILL 887 ARE BEING CONSIDERED IN HOUSE STUDY COMMITTEES

House Bill 1779, which would create a Park Districts Distribution Fund under the State Revenue Sharing Act, has been referred to the House Revenue Committee's Subcommittee on Income Tax for further consideration and recommendation. The Association has conducted a survey of all member districts for the purpose of determining as nearly as possible the amount of tax revenue which has been lost to park districts because of the elimination of the persona] property tax, the numerous exemptions which have been granted the Illinois taxpayer by removing automobiles and household furnishings from taxation, the granting of additional exemptions to senior citizens and the results of the varying assessment practices in the various counties throughout the State. The results of the survey clearly establish the substantial loss of tax revenues to park districts. This information will be presented to the Sub-Committee at a hearing during the present October-November session of the General Assembly. A share of the net revenues from the Illinois State income tax will be be urged as the only sound basis for the establishment of the Distribution Fund, although it may be suggested to the Committee that revenues from additional sources such as the Illinois State Lottery and Parimutuel Betting could be transferred into the Distribution Fund at a subsequent date.

Senate Bill 887, which was referred to a study committee in the House Committee on Cities and Villages was heard in that Committee on September 17. The study committee voted to recommend to the House Committee on Cities and Villages the repeal of Section 3-13 of The Park District Code. That recommendation will be considered by the whole Committee during the present Fall session.

AMENDMENTS TO LAND AND WATER CONSERVATION FUND ACT ARE BEING CONSIDERED BY CONGRESS

Two bills increasing the authorized spending level for the Land and Water Conservation Fund through 1989 are being considered at the present time in committee in the Congress. S. 327 is scheduled for hearing by the full Senate. That Bill would increase from $300,000 to a maximum of $1,000,000,000 the appropriation to the Land and Water Conservation Fund for each of the fiscal years from 1975 through 1989. H.R. 2763, which is being heard in the House Sub-Committee on National Parks and Recreation would increase the authorized funding level from the present $300,000,000 figure to $800,000,000. These measures would also result in limiting the use of a portion of the funds for covering outdoor swimming pools and ice skating rinks, although the measures as originally introduced would have permitted the use of not more than 25% of the amount allocated to a state for the planning and development of sheltered facilities for recreation activities normally pursued outdoors within areas where the Secretary of the Interior determines that (1) the unavailability of land or climatic conditions provide no feasible or prudent alternative to serve identified unmet demands for recreation resources; and (2) the increased public use thereby made possible justifies the construction of such facilities. It would appear that President Ford's present administration policy designed to cut federal income taxes with an attendant cut in spending portends a difficult road for such legislation.

Illinois Parks and Recreation 28 November/December, 1975