Legal/Legislative Scene

Bond Clarification Passes General Assembly

by Peter M. Murphy
IAPD General Counsel

In the closing hours of the 1995 Legislative Session, the Illinois House of Representatives and State Senate restored the ability of local governments to issue bonds within the property tax cap.

This is a tremendous victory for all of you who worked so diligently to educate the Illinois General Assembly on the plight of park districts subject to the tax cap.

This effort also ends a four-year struggle to pass this legislation. Every member should take pride in this successful legislative effort. The language passed is a modification of that suggested by the Illinois Association of Park Districts. A brief overview follows:
• Permits a governmental unit to issue "limited bonds" from an established debt service extension base;
• Defines "limited bonds" as obligations that exclude notes, installment or financing contracts, leases, certificates, tax anticipation warrants or notes, vouchers, and any other evidence of indebtedness;
• Defines "debt service extension base" as an amount equal to the portion of the 1994 extension for payment of interest and principal on bonds issued by a taxing district without referendum, but excluding bonds issued under Section 15 of the Local Government Debt Reform Act (alternate bonds) and refunding obligation issued to refund or continue to refund obligations initially issued pursuant to referendum;
• Excludes from the definition of "aggregate extension" in the Property Tax Extension Limitation Law payments of principal and interest on limited bonds in an amount that does not exceed the established debt service extension base;
• Allows for a referendum for the establishment of a debt service extension

base, or an increase in the debt service extension base if: 1) the taxing district holds a referendum before the date on which the levy must be filed with the county clerk; and 2) a majority of electorate voting on the referenda approve the question;
• Requires the referenda question to be posed to the electors of a taxing district at a regularly scheduled election, and states the question to be posed on the ballot;
• Excludes from the definition of "aggregate extension" in the Property Tax Extension Limitation Law payments of principal and interest on bonds issued under Section 15 of the Local Government Debt Reform Act (alternate bonds).

On other fronts, attempts to raid the OSLAD fund and divert 22% of that fund (or $2.4 million) for state park development purposes designed to benefit private concessionaires has been stopped. This very dangerous threat to the OSLAD fund was proposed by political insiders to benefit special interests. The membership of the IAPD is to be congratulated for their prompt response on this issue.

The IMRF Early Retirement Incentive was passed by the Senate's Insurance, Pensions and Licensed Activities Committee as amendment #1 to HB 413.

Included within the bill are park districts, forest preserves, counties, townships and school districts. The version of Early Retirement Incentive passed by the committee provides for an optional plan. Employees must be age 50 with 20 years of service to be eligible. If the employer adopts the program, it is available for twelve months. The program could be adopted again once the cost is paid off, but no more than once every six years.

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$1 MILLION AWARDED IN BOAT ACCESS GRANTS
State grants totaling more than $1 million will be awarded to 17 local governments for construction and improvements to boat and canoe access areas.

Funds for the state-financed grant program come from marine motor fuel taxes and registration fees for boats and canoes.

Grants can provide up to 100 percent funding for construction and/or improvements to public boat access facilities and 50 percent funding for land acquisition costs associated with providing such facilities. The maximum grant per project is $200, 000. Grants must be used for boating-related projects and activities.

Administered by the Department of Conservation, the grants are awarded on a competition basis. This year, 20 applications totaling $1.8 million were submitted. Since the program's inception in 1968, more than 330 local boating projects totaling more than $26 million have been funded for about 160 communities.

Applications for project grants can be submitted to the Conservation Department between July 1 and September 1 each year. Local government units wanting more information or grant application forms can contact the Department of Conservation, Division of Grant Administration, 524 S. Second St., Springfield, IL 62701-1787 or call (217) 782-7481.

Following is a list of this year's grant recipients:
• Champaign County Forest Preserve District, $50, 000
• Chicago Park District, $143, 200
• Cook County Forest Preserve District $27, 500
• Sterling Park District $35, 800
• Wauconda Park District, $30, 000.

$208, 000 IN URBAN FORESTRY ASSISTANCE GRANTS DISTRIBUTED
Urban Forestry Assistance grants totaling $208, 000 have been awarded to 33 Illinois communities to provide technical assistance for urban forestry programs.

Authorized through the Urban Forestry Assistance Act, the federal grants provide 50/50 cost share reimbursements for approved projects. The Conservation Department's Division of Forest Resources administers the grants in cooperation with the U.S. Forest Service.

Recipients can use the grants to develop comprehensive urban forestry management plans, establish a tree board and tree ordinance, conduct tree inventories, provide urban forestry education, conduct tree planting demonstrations on public lands, control insects and diseases, and develop tree management strategies for public areas.

Communities with populations of more than 275 are eligible to apply for the grants. There is a cap of $ 10, 000 for each community, with multi-community projects allowed.

For information about the Urban Forestry grant program, communities may contact the Department of Conservation, Division of Forest Resources, 524 S. Second St., Springfield, IL 62701-1787; phone (217) 782-2361.

More than 70 applications were received requesting about $570, 000 in grant funds. More than 100 communities have shared nearly $765, 000 in assistance since the program began in 1992.

LEGISLATIVE SYNOPSIS
House Bill 20 (Daniels)
Amends the Code of Civil Procedure by making numerous changes regarding: respondents in discovery; healing art malpractice and product liability actions; actions based upon apparent or ostensible agency; scope of discovery; jury instructions; limitations on recoveries in certain tort actions; itemized verdicts; contingent fees; limitations on punitive, noneconomic, and other damages; joint and several liability; collateral source payments; and other matters. Amends the Joint Tortfeasor Contribution Act regarding actions by a Tortfeasor against the plaintiff's employer. Amends the Premises Liability Act in relation to the duties owed to entrants and trespassers.

(3-9-95) Public Act 89-7. House Bill 143 (Balthis)
Creates the Unfunded Mandates Act Provides that a bill that would require the expenditure of funds by a unit of local government or school district or that would exempt property taxes or other items from the local tax base shall not become law except with (1) a three-fifths vote of each house or (2) a majority vote of each house and the passage of a companion appropriation bill for reimbursement of funds to implement the requirement or replace lost revenue.

(3-16-95) Assigned to the House Rules Committee.

House Bill 190 (Currie)
Amends the Freedom of Information Act. Decreases the time in which a public body must respond to an information request. Provides that unreasonable restrictions shall be deemed denial of information requests. Prohibits charging for mere inspection of public records. Eliminates appeal of a denial of access to the public body's head. On judicial review of a denial, prohibits a public body from denying access on any basis not originally invoked as the basis for denial.

(3-23-95) Assigned to the House Rules Committee.

House Bill 200 (Daniels)
Public Act 89-1 extends the provisions of the Property Tax Extension Limitation Law previously applicable only to non-home rule taxing districts located in DuPage, Kane, Lake, McHenry and Will Counties to non-home rule taxing districts in Cook County. The Law limits the annual growth in Cook County property tax extensions to (i) 5% for taxes extended in 1995 and (ii) the lessor of 5% or the percentage increase in the Consumer Price Index during the calendar year preceding the relevant levy year for taxes extended in years after 1995. Generally, extensions can be increased beyond this limitation only with referendum approval. Beginning March 1, 1995, general obligation bonds secured by an unlimited tax levy can only be issued with referendum approval, with limited exceptions such as for refunding bonds.

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Public Act 89-1 retains the provision in current law requiring the Cook County Clerk to extend taxes based on a taxing district's prior year's equalized assessed value. Public Act 89-1 includes the value of TIF property (in calculating the aggregate extension base) in the first year after a municipality terminates the designation of a TIF area under the Tax Increment Allocation Development Act or the Industrial Jobs Recovery Law. Public Act 89-1 does not affect home rule units or down-state taxing districts.

House Bill 201 (Daniels)
Adds a preamble stating that it is the intent of the General Assembly that the repeal of the Structural Work Act by this Public Act shall bar any action accruing on or after the effective date of this Public Act, but that any action accruing under the Structural Work Act before the effective date of this Public Act may be maintained under the Structural Work Act. Adds an immediate effective date.

(2-14-95) Public Act 89-2.

House Bill 226 (Lindner)
Creates the School Land Dedication and School Facility Impact Fee Act.

House Amendment No. 4—Deletes everything after the enacting clause and restores only the short title.

(5-17-95) Placed on Senate Calendar of Third Reading.

House Bill 375 (Daniels)
Amends the Property Tax Code to add, in the definition of "aggregate extension" in the Property Tax Extension Limitation Law within the Code, amounts of extensions to pay principal of or interest on general obligation bonds issued without referendum under the Park District Code, the Chicago Park District Act, or the Downstate Forest Preserve District Act. Provides that any taxing district (now, a park district) that could issue general obligation bonds without a direct referendum before becoming subject to the Property Tax Extension Limitation Law may continue to do so. Amends the Property Tax Extension Limitation Law in the Property Tax Code to allow the county board of a county not subject to the Property Tax Extension Limitation Law. Allows voters in a taxing district that are wholly located within the county shall be subject to the Property Tax Extension Limitation Law. Allows voters in value in a single county to petition for a referendum on whether the Property Tax Extension Limitation Law should apply to that taxing district. Provides that if the voters approve the question, those taxing districts shall be subject to the Property Tax Extension Limitation Law. Effective immediately.

(5-18-95) Placed on House Calendar Order of Concurrence.

House Bill 413 (Hassert)
Amends the Illinois Municipal Retirement Fund Article of the Pension Code. Authorizes a one-year early retirement program that an employer may adopt as often as once every 5 years. Excludes cities, villages, and incorporated towns and their employees. Provides for up to 5 years of additional service credit and up to 5 years of age enhancement. Requires an employer to pay the resulting increase in unfunded liability over a specified period. Provides that benefits are forfeited upon return to service.

(5-22-95) Passed both Houses.

House Bill 661 (Balthis)
Amends the State Mandates Act to provide that the Department of Commerce and Community Affairs shall review applications for reimbursements from groups of local governments. Provides that the failure of the General Assembly to fund a mandate does not relieve the department from the duty to review the reimbursement applications. Allows a local government to appeal to the State Mandates Board if the Department fails to act upon an application. Requires the Department to pay a local government's attorneys fees for an appeal in which the local government prevails. Effective immediately.

House Amendment No. 1—Further amends the State Mandates Act to require the Department of Commerce and Community Affairs, upon the filing of a request for determination of a mandate, to determine whether a Public Act constitutes a mandate and the statewide cost of implementation.

Fiscal Note, Amended (DCCA)— HB 661, amended, does not have an impact on State revenues or expenditures.

(5-15-95) Passed both Houses.

House Bill 761 (Pankau)
Amends the Swimming Pool and Bathing Beach Act. Changes the title of this Act to the "Swimming Facility Act." Changes references referring to "swimming pools" and "public bathing beaches" to "swimming facility." Includes water slides under this Act. Authorizes the Department of Public Health to establish license fees (now license fees are $50). Makes other changes. Effective immediately.

(4-25-95) Recommitted to the House Rules Committee.

House Bill 952 (Kubik)
Amends the Open Meetings Act to provide that, at an open meeting for which there was proper notice, a closed meeting may be held with no further notice. Requires an agenda for each regular meeting to be posted at the principal office of the public body and at the place where the meeting will be held. Effective immediately.

(3-16-95) Assigned to the House Rules Committee.

House Bill 965 (Ryder)
Amends the State Finance Act to create the Conservation 2000 Fund and the Conservation 2000 Projects Fund, to be used for programs relating to natural resource protection, recreation, tourism, and compatible agricultural and economic development activities. Provides for monthly transfers from the General Revenue Fund to the Conservation 2000 Fund. Effective immediately.

Fiscal Note (Dept. Of Conservation)—Any additional fiscal impact is subject to the amount of bonds authorized.

(5-19-95) Senate Calendar Order of 3rd Reading.

House Bill 974 (Balthis-Hughes and Klemm)
Amends the Park District Code. Requires the annexing ordinance to be filed in the county where the annexation takes

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place rather than in each county in which the district lies. Allows park district owned property used as a recreational area to be annexed to the district by passage of an ordinance if the property is separated from the district by 1% miles or less and is not within the boundaries of any park district. Requires the ordinance and an accurate map of the annexed territory to be filed in the county clerk's and recorder's office of each county in which the annexation takes place. Gives condemnation power to park districts located in counties with a population over 450, 000 but with no territory located in a county over 3, 000, 000. Under current law, a park district located in more than one county with the majority of its territory located in a county over 450, 000 in population and none of its territory located in a county over 1, 000, 000 in population has condemnation power. Provides that whenever any property that is located within a park district also lies within a municipality that has established a recreation board, and the property is being taxed by both entities, 10% or more of the legal voters residing in the territory may petition to be disconnected from the park district. Applies only in counties over 3, 000, 000 and municipalities between 22, 000 and 25, 000. Establishes referendum procedures. Repeals these provisions on January 1, 1998. Amends the Down-state Forest Preserve District Act. Authorizes a forest preserve district located in a county under 400, 000 to sell parcels of land under one acre in size. Provides that the president of the board of commissioners of a forest preserve district shall have the power to appoint, with the advice and consent of the board, certain officers as may be necessary. Provides that the board may, by ordinance, establish procedures as it deems necessary concerning all matters involving district personnel. Effective immediately.

House Amendment No. 2—Deletes reference to 70 ILCS 1205/8-1. Removes provision that would have given a park district located in a county with a population over 450, 000 and with none of its territory located in a county with a population over 3, 000, 000 condemnation power.

(5-25-95) Placed on House Calendar Order of Concurrence. House Bill 1103 (Brunsvold) Senate Bill 852 (Cronin)
Amends the Park District Code. Requires park districts to issue a 10-year capital plan and update the plan every two years. Requires duplication of services by existing or planned community-based services to be specifically noted in the plan. Requires the plan to be available for public inspection at the park district. Requires projects to be presented in the plan for two years before construction on the project may begin. Allows the park district to issue bonds to develop recreational facilities. Allows the park districts to contract with not-for-profit organizations to administer the facility and to provide recreational facilities. Allows the park district to issue bonds to develop recreational facilities. Allows park districts to transfer the use of facilities on park district property to not- for-profit organizations to administer recreational and educational programs.

(3-23-95) Assigned to the House Rules Committee.

House Bill 1230 (Cowlishaw)
Amends the Park District Code. Allows park district-owned property used as a recreational area to be annexed to the district by passage of an ordinance if the property is separated from the district by 1 1/2 miles or less and is not within the boundaries of any park district. Requires the ordinance and an accurate map of the annexed territory to be filed in the county clerk's and recorder's office of each county in which the annexation takes place.

(3-16-95) Assigned to the House Rules Committee.

House Bill 1234 (Cowlishaw)
Amends the Downstate Forest Preserve District Act. Provides that if the boundaries of a forest preserve district are coextensive with the boundaries of a county having a population between 700, 000 and 3, 000, 000, district commissioners shall be elected from county board districts. (Now, county board members perform the duties of forest preserve district commissioners.)
House Amendment No. 1—Adds reference to 55 ILCS 5/2-3002.5 (new). Amends the Counties Code. Provides that beginning with the federal decennial census in 2000, counties having a population between 700, 000 and 3, 000, 000 shall reduce the number of members on their county board from 24 to 18. Provides that each county board district within a county having a population between 700, 000 and 3, 000, 000 shall elect three members to the county board.

(5-3-95) Recommitted to the House Rules Committee.

House Bill 1239 (Bigger)
Amends the Property Tax Extension Limitation Law in the Property Tax Code to provide that if a new rate increase was approved by referendum, the taxing district may increase its rate to that allowed by referendum and the taxing district shall not be subject to the extension limitation.

(3-16-95) Referred to House Rules Committee.

House Bill 1470 (Churchill)
Amends the Workers' Compensation Act by adding a Section caption to the Section concerning appointments of secretaries and arbitrators by the Industrial Commission.

(5-26-95) House Concurrence Committee—Appointed.

House Bill 2145 (Murphy, M.)
Creates the Health and Fitness Center Fair Competition Act of 1995. Amends the Park District Code, the Chicago Park District Act, Downstate Forest Preserve District Act, and the Cook County Forest Preserve Act. Requires the local district to submit the question of whether to increase its aggregate extension under the Property Tax Code or levy, extend, or increase any local tax to pay the principal or interest on bonds or expend public funds to construct or operate health or fitness centers to direct referendum at the next general election. Requires a public hearing in the district. Requires specific findings to be made and adopted by at least a 3/5 vote of the governing body of the local district. Allows for review under Administrative Review Law. Effective immediately.

(3-16-95) Assigned to the House Rules Committee.

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House Bill 2179 (Wait)
Amends the Property Tax Code to allow the voters of certain counties to subject all taxing districts located entirely within those counties to the Property Tax Extension Limitation Law at referendum. Allows taxing districts located in more than one of those counties to conduct similar referenda.

House Amendment No. 1—Provides that only specified counties or taxing districts may hold a referendum for purposes of applying the Property Tax Extension Limitation Law to the county or taxing district.

(5-3-95) Recommitted to the House Rules Committee.

Senate Bill 63 (Klemm)
Amends the Local Governmental and Governmental Employees Tort Immunity Act. Provides that a local public entity or a public employee acting in the scope of his or her employment is not liable for the provision of information by computer or any other electronic transmission.

(5-25-95) Sent to the Governor.

Senate Bill 134 (Peterson)
Amends the Property Tax Extension Limitation Law and the One-Year Property Tax Extension Limitation Law in the Property Tax Code to include in the definition of "new property" real property that was exempt from taxation for the preceding levy year, but which is no longer exempt. Effective immediately.

(5-24-95) Sent to the Governor.

Senate Bill 204 (DeAngelis)
Amends the Property Tax Code to provide that determinations as to whether items are real or personal property shall be made according to legal precedents and rules in effect before the adoption of the 1970 Illinois Constitution.

(4-25-95) Referred to the House Rules Committee.

Senate Bill 212 (DeAngelis)
(5-24-95) Recommitted to the House Rules Committee. Senate Bill 257 (Butler)
Amends the Prevailing Wage Act. Provides that the Act does not apply to wages for work performed under a contract if the amount of the contract is $500, 000 or less.

(5-4-95) Assigned to the Senate Rules Committee.

Senate Bill 289 (Parley)
Creates the Lake Michigan Protection Authority to control the protection, development, and use of the water, shore, and bed of Lake Michigan; transfers to the Authority the powers and functions of the Illinois Department of Transportation that relate to Lake Michigan; authorizes the Authority to assume, by rule, any power or function of a unit of local government that relates to Lake Michigan; authorizes the Authority to review and oversee the expenditure of public funds for the protection or development of the Lake, and the development of related policies and comprehensive plans. Preempts home rule powers. Effective immediately.

(5-4-95) Assigned to Senate Rules Committee.

Senate Bill 300 (Woodyard)
Amends the State Finance Act to create the Conservation 2000 Fund and the Conservation 2000 Projects Fund, to be used for programs relating to natural resource protection, recreation, tourism, and compatible agricultural and economic development activities. Provides for monthly transfers from the General Revenue Fund to the Conservation 2000 Fund. Effective immediately.

Fiscal Note (Dept. Of Conservation)—Any additional fiscal impact is subject to the amount of bonds authorized.

(5-23-95) Sent to the Governor.

Senate Bill 326 (Syverson)
Amends the Limitation Law to include in the definition of "aggregate extension" the greater of (A) the amount of the extension made in the year 1992 or (B) the amount of the most recent extension made for a park district or forest preserve district to pay principal of or interest on general obligation bonds issued without referendum pursuant to the Park District Code, the Chicago Park District Act or the Downstate Forest Preserve Act. Provides that any taxing district (now, only a park district) may issue general obligation bonds without a direct referendum, provided that the extension to pay debt service shall be part of the aggregate extension limitation under the Limitation Law.

Allows the voters of a county not subject to the Limitation Law to petition for a referendum in the county on the question of whether taxing districts that are wholly located within the county shall be subject to the Limitation Law. Allows voters in a taxing district that does not have the majority of its total equalized assessed value in a single county to petition for a referendum on whether the Limitation Law should apply to that taxing district. The number of petitioners must equal at least 10% of the votes cast for Governor in the respective county or taxing district. Provides that if the voters approve the question, those taxing districts shall be subject to the Limitation Law beginning on the January 1 following the election. Effective immediately upon becoming law.

(5-24-95) Recommitted to the House Rules Committee.

Senate Bill 401 (DeAngelis)
Senate Amendment No. 1—Amends the Property Tax Extension Limitation Law and the One-year Property Tax Extension Limitation Law in the Property Tax Code to exclude from the definition of "aggregate extension" special extensions made for a municipality to pay principal or interest on alternate bonds issued under the Local Government Debt Reform Act when the revenue pledged is not from bonds issued under the Illinois Municipal Code by municipalities with fewer than 500, 000 inhabitants. Effective immediately.

Senate Amendment No. 2—Amends the Property Tax Extension Limitation Law in the Property Tax Code to exclude from the definition of aggregate extension those extensions made for educational purposes at a rate, authorized in the Ar-

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tide of the School Code concerning a school district in a city of over 500, 000 inhabitants, in excess of the maximum rate authorized to be levied in 1994. Provides that these taxes may be levied by the school district without a direct referendum.

Senate Amendment No. 3—Further amends the Property Tax Code to remove the required use of the prior year's equalized assessed value in computing tax extensions in counties of 3, 000, 000 or more. Amends the Property Tax Extension Limitation Law and the One-Year Property Tax Extension Limitation Law in the Property Tax Code to exclude from the definition of "aggregate extension" certain extensions by school districts for school safety and security.

(5-3-95) Referred to House Rules Committee.

Senate Bill 586 (Klemm)
Reinserts provisions of the Local Governmental and Governmental Employees Tort Immunity Act concerning insurance contracts and tax levies from the bill as introduced and makes the following changes. Requires reserves to be based on reasonable actuarial or insurance underwriting evidence (instead of historical annual expenditures). Prohibits a property tax levy if the reserve would be increased beyond 125% of certain estimated ultimate losses (instead of the reasonable-evidence based amount). Restores existing law concerning the ability of local taxing entities to issue bonds for the purpose of creating certain reserves. Makes changes concerning the purposes for which a local public entity may levy taxes. Makes other changes. Adds an immediate effective date.

Senate Amendment No. 3—Amends the Local Governmental and Governmental Employees Tort Immunity Act to include loss reduction supervisory services in addition to loss prevention supervisory as means by which a local public entity may protect itself against any liability, property damage, or loss.

(5-24-95) Recommited to the House Rules Committee.

Senate Bill 829 (O'Malley)
Amends the Code of Civil Procedure. Provides that a party filing a complaint for condemnation has the burden of proving at hearing by clear and convincing evidence that the property to be acquired is needed for a specific and presently necessary project.

(5-4-95) Assigned to House Rules Committee.

Illinois Parks & Recreation* May/June 1995* 17