The Legislative Scene

By Peter M. Murphy, Director, Governmental Services, IAPD

New Bill Clarifies Liquor Sales — "Local Taxes in Local Hands" Revived — "Truth in Taxation Act" — Park District Code Amendments — Cutback Amendment.

Governor James R. Thompson approved House Bill 1178 on August 16, 1982. His action finalizes attempts which have been ongoing for many years to clarify the authority of park districts to control the sale and consumption of alcoholic liquor. H.B. 1178 provides park districts the authority to permit the sale or delivery of alcohol in any building owned by a park district subject to the approval of the governing board. The bill also provides forest preserve districts, with a population under 3,000,000, new authority to permit retail sales of alcohol in conjunction with food service facilities at golf courses. Note that this legislation does not authorize the establishment of a tavern or bar except in connection with a golf course. H.B. 1178 has the uniform effective date of January 1, 1983 and should be referenced as Public Act 82-917. Special thanks for the success of this legislation go to the sponsors Representative Terry Steczo (D-9th District), Representative Gene Hoffman (R-40th District), Senator Robert Egan (D-16th District) and Senator Jack Bowers (R-41st District).

TAX REFORM OR RELIEF?

In the last issue of IPR the "Legislative Scene"highlighted those pieces of legislation which were introduced during the 82nd General Assembly and would have in some way restricted the ability of local governments to raise revenue through the property tax base. The proposals ranged from changing the assessment level of property from 33-1/3% to some lower level (suggested 25%-30%) to a general freeze in property tax extensions tied to a set growth rate of from 3%-5% with the option that voters could increase this rate through referendum. As was reported none of these measures met with success much to the relief of local governments which are having to cope with poor economic factors as well as an increased demand for services.

One of the measures receiving the most attention at the beginning of the 1982 session was the "Local Taxes in Local Hands" proposal which Governor Thompson initiated in his "State of the State" message. Its intent was to neutralize the effects of the multiplier, which is used to equalize property assessments among counties, so that increases in the multiplier would not raise local tax bills. The effect of this initiative would be to remove the stigma the state is saddled with by raising taxes through the application of the multiplier and instead put the burden on local assessors to assess at the proper statutory level of 33-1/3%. Failure on the part of assessors to do so would result in tax relief but also a direct decrease in tax revenue for local government. While some taxing bodies have the capability to raise their tax rate to compensate for such action, park districts among others cannot raise rates without legislative or voter approval. Since historically the majority of local assessors have not assessed at the correct level the practical effect of the local taxes in local hands proposal would be to reduce taxes and revenue to local government. The plan would also create a situation where local governments would have to go into court to force assessors to raise assessments. This would not only be a lengthy process but an expensive practice as well.

The "Local Taxes in Local Hands" proposal which failed to receive the approval of the legislature during the regular session has been revived by Governor Thompson through an amendatory veto of House Bill 2485. To become law the Governor's recommended changes must receive the majority vote of both Houses. No action, however, will be taken before the November 2nd election.

The veto session will begin on November 5th with the filing of Governor Thompson's veto messages. Subsequent veto session dates as of this writing are November 17, 18, 19 and December 1, 2, and 3. This veto session promises to be filled with action as issues of tax reform, tax increases and/or finding other new sources of revenue for the State, and legislative salaries may be among a number of items for review.

LEGISLATION

With all but the final veto session completed, the Illinois General Assembly has introduced over 4,364 pieces of legislation (2,675 House; 1,689 Senate) and has passed 1,137 bills or roughly 26%. The total passage rate in the Senate of 32% or 555 bills fared slightly better than the House with a rate of 21% or 582 bills.

The following bills should be noted for their effect on park districts.

Senate

S.B. 1621 — McMILLAN — Amends the "Truth in Taxation Act" to change the publication requirements for those taxing bodies with a levy over 105% of the previous years extension. If the taxing district is located entirely in one county, the notice must be published in a newspaper of general circulation in the taxing district and if there is none then in a newspaper of general circulation published in the county and having circulation in the taxing district.

If the taxing district is located primarily in one county but extends into adjoining counties the notice shall be published in a newspaper of general circulation published in the taxing district, or if there is no such newspaper, then in a newspaper of

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general circulation published in each county in which any part of such district is located. This legislation also provides that if prior to January 1, 1982, a taxing district in Cook County, by including debt service levies as part of its aggregate levy, had a levy which was more than 105% of its previous years extension, exclusive of debt services levies and election costs, such levy shall not be deemed invalid due to noncompliance with the Act. Notice must now also include legal names of taxing districts. LAST ACTION: Governor approved — effective June 23, 1982. P.A. 82-760.

House

H.B. 2135 — LEVIN — Amends various acts relating to elections and the Election Code. Amends among other acts the "Park District Code" Sections 5-8, 9-19, 9.1-2, 9.2-2, 9.3-2, 11.1-7, and 11.2-2 relating to back-door referendums by adding the following language: "The publication or posting of the resolution shall include a notice of (1) the specific number of voters required to sign a petition requesting that the question of the adoption of the resolution be submitted to the electors of the district; (2) the time in which the petition must be filed; and (3) the date of the prospective referendum. The Secretary of the governing board of the park district shall provide a petition form to any individual requesting one.

LAST ACTION: Passed both Houses June 29, 1982.

H.B. 2294 — BOWER — Provides that no unit of local government including home rule unit, school district or community college district can increase its property tax revenue beyond its 1982 property tax revenue unless the increase is approved by referendum. Prohibits creation of new units of local government, school districts or community college districts without approval of 2/3 of the voters.

LAST ACTION: Lost in House 49 to 110, May 20, 1982.

H.B. 2375 — BOWER, VINSON and COLLINS, PW — Amends the Illinois Municipal Code and various Park District Acts. Provides that the ballots in bond referenda contain the dollar amount of the bonds issued, their annual interest rate, time of maturity and the dollar amount of principal and interest which must be repaid to the bondholders.

LAST ACTION: Tabled in House Cities and Villages Committee, May 3,1982.

NOVEMBER ELECTION

A look at the upcoming election indicates that the impact of the cutback amendment will have a profound effect on the makeup of the new 83rd General Assembly. Not only is partisan control of both Houses subject to change but candidates' constituencies are in a state of flux as well. The lack of head to head competition for state elective office in many districts bears this out. In the House there are 30 districts with no Republican opposition and 24 districts with no Democratic candidates running. In the Senate there are 13 districts where there is no Republican opposition and 10 without a Democratic candidate running. It is interesting to note that this will mean

(cont. on p.41)

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(cont. from p.37)

roughly 46% of the members of the House and 38% of the Senate membership will be elected without opposition in the fall. These numbers, of course, do not take into consideration the degree of difficulty the primary race presented but once elected the advantage of incumbency inmost cases will be insurmountable in future races.

Illinois Parks and Recreation 41 September/October 1982