Executive Report

Attorney General Opinions

Child abuse

Illinois' provisions to protect the rights of victims of child abuse and neglect do comply with federal regulations, despite differences in semantics, laws and procedures. The attorney general clarified two items in question (S-1298). First, "reasonable cause to believe," the term used in the state's Abused and Neglected Child Reporting Act (Ill. Rev. Stat. 1975, Ch. 23, sec. 2054 etseq.) means the same as "suspect," the term used in the federal regulations. Both refer to the same circumstances that could lead to reporting instances of child abuse and neglect. Second, the legal system in Illinois does insure that the rights of child abuse and neglect victims are protected although the responsibility is not the state's attorney alone. The Juvenile Court Act (Ill. Rev. Stat. 1975, Ch. 37, sees. 704-5 (1) (c)) requires the appointment of a guardian ad litem for a reported case of abuse and neglect and a legal representative for minors whose abuse and neglect has not been reported.

Telephone service licensing, NP-1296: The Dangerous Drugs Commission has authority to license telephone services "which in fact provide treatment, care, rehabilitation, training or education," to drug users. "The initial contact by a drug addict may be crucial in determining whether he continues to seek help and whether the help which is rendered is the most effective," the attorney general said.

Home loans, S-1297: Home mortgage loans made by savings and loan associations under the Graduated Payment Mortgage Program are legal in Illinois. The program, sponsored by the federal Department of Housing and Urban Development (HUD), does not violate state legal provisions concerning mortgages. "Three possible legal problems in such a program should be considered: (1) the attachment of a lien for the new principal created out of unpaid interest; (2) legal restrictions on the compounding of interest; and (3) an Illinois statute prohibiting variable-rate mortgage loans," the attorney general said. He dismissed all three objections.

Retirement pensions, S-1295: Under the Illinois Pension Code (Ill. Rev. Stat. 1976 Supp., Ch. 108 1/2, sec. 1-101 et seq.) persons employed with funds from the Federal Comprehensive Employment and Training(CETA) program must participate in the "various retirement systems of their employers." Thus state or local CETA-paid employees must enroll in either the State Employees' Retirement System of Illinois or the Illinois Municipal Retirement Fund program. However, "while all the employees are required by the Pension Code to participate in retirement systems, not all of them will come within the provisions of ... the regulations." So the General Assembly needs to make changes in some provisions of the Pension Code to "make them consistent with the new Federal regulations." The governor cannot make such changes with an executive order.

Property tax paradox

"Even with full funding more than 60 percent of Illinois school districts will receive less money next year from the state than they received last year." This was the prediction of Supt. Joseph M. Cronin at the October meeting of the State Board of Education. He also noted that the state's share in education costs could drop to less than 50 per cent, which is contrary, he said, to state education policy. Warning that the prospect of full funding of the state aid formula in 1978 may prove to be a hollow victory, Cronin recommended that attention be given to formula revision and property tax reduction.

Decline in the number of pupils is cause for the dip in state aid, but the principal factor next year will be the upward surge of 1977 property taxes which reflected

26/December 1977/ Illinois Issues


for the first time the steep increase in real state values. Property taxes for 1977 were figured on soaring 1976 assessments, but scool aid was calculated on the lower 1975 assessments. As a result, several dozen school districts got more from the state in 1977 than they were entitled to and will have to pay it back next year. But the seesaw effect doesn't stop there. School aid allotments for 1978-79 will be based on 1976 assessments and will result in less state money for many schools.

Although the dollar amount a district receives remains the same whether they come from the state or the local property tax, state aid goes to the district's education fund while tax revenues must be divided among other school funds as well. A drop in state aid can therefore mean less operating money for the district. Districts with low tax rates and declining enrollments may lose still more state aid because of the way the funding formula works, even though their local assessments increase tax revenues.

Rural districts and state board officials wondering about the impact of the new farmland assessment act which bases tax assessments on the land's productivity rather than its market value. Farm assessments being made this year for 1977 taxes (extended in 1978) will be frozen at 1976 rates, and farmland assessment rates will not be used in determining the multipliers that equalize assessments at 33 per cent. This could give a tax break to homeowners and result in lower residential property taxes in rural counties. In that case, the state might owe the schools money in 1979.

Farmland assessments for the 1979 tax year will use the productivity formula. Once again school districts and state education officials will be figuring out where they are in relation to previous years, while township assessors and county assessment supervisors try to make the new system work.

Contracts by phone

The Attorney General's Office made an out of settlement in its pending lawsuit against two Nevada magazine subscription firms. The consumer lawsuit had been entered as a result of more than 100 complaints about the sales practices of the firms. The firms, operating out of Chicago and Arlington Heights, recorded telephone conversations with consumers and used them as binding contracts for magazine orders, despite the fact that the consumers were told the recordings were being made for "office purposes" only. The settlement aginst two firms calls for each to pay a $12,000 civil penalty to the state, provide restitution to consumers and agree to comply with a consent decree filed before the Sangamon County Circuit Court. The decree specifies that: "contracts will be written, if oral, will be cancellable at any time; telephone collection efforts will be confined to one contact per week between the hours of 8:00 a.m. and 9:00 p.m.; taperecorded 'orders' will not be represented to consumers as binding contracts; future sales of the firm will be in compliance with the Illinois Consumer Fraud and Deceptive Business Practices Act" (Ill. Rev. Stat. 1975, Ch. 121 1/2, sec. 261 et seq.).

Illinois items

Local governments must be informed by public utilities of cutoffs in heating services to residences between the months of November and March. Under Public Act 80-953, effective this winter, a utility must notify either the director of the local health department, the township supervisor or the county sheriff when it makes a cutoff not requested by the customer. A landlord or mortgagee who requests it, can also receive the cutoff warning. In addition, the utility must inform the customer that others are getting notice of the cutoff. The law does not say what local authorities are to do with the information and specifies that none of them are liable for death or damages caused by a cutoff. The extra paperwork does, however, give local governments information they could act on during severe cold spells to prevent tragedies.

Operation DIAL (Disabled Individuals Assistance Line), a toll-free line devoted to handling problems of the handicapped, began October 7. DIAL is designed to provide information about programs, services, agencies and organizations for handicapped persons in Illinois. The program also aids persons who have problems dealing with agencies or organizations, especially where the agency has not responded to a request for service. The number, 312/793-5000, can be called collect from anywhere in Illinois from 9 a.m. to 5 p.m. Monday through Friday, except for state holidays.

Chicago hotels and other businesses have lost an estimated $15 million in revenue because of a boycott by supporters of the U.S. Equal Rights Amendment(ERA). Over 40 national groups have agreed to keep their conventions out of states which have not ratified the ERA. The Chicago Convention and Tourism Bureau voted to support the ERA and urged members of the General Assembly to vote for the amendment.

The license of a real estate broker was ordered revoked October 24 by the Illinois Department of Registration and Education for renting apartments in four slum buildings in Chicago found to violate the city's building codes, endangering the health and safety of the occupants. Complaints from residents of the buildings led to the department's unprecedented action.

More than 200 state employees were removed from welfare rolls after it was discovered they were ineligible for welfare payments. Reportedly, Gov. Thompson plans to fire them as well, regardless of whether there is enough evidence to support criminal charges. This summer an additional 1,740 public employees, including federal and local as well as state employees were eliminated from the rolls.

Centralia and Hillsboro have been chosen as sites for two new medium-security prisons. Each will hold 750 prisoners, employ 400 persons and cost $29 million to build. They should be ready for occupancy by late 1979.

December 1977/ Illinois Issues/27


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