STATEHOUSE INSIDER

ISSUES & INSIGHTS FROM THE LEGAL/LEGISLATIVE SCENE

Final Action on all Pending Legislation - Telephonic Meetings, CPI and Eminent Domain

By mid-August, Governor Rod Blagojevich had completed the approval and veto process for all legislation pending before him, including initiatives important to park districts, forest preserves, conservation and recreation agencies. Guaranteed Energy Savings Contracts Senate Bill 1827 (Public Act 94-1062) permits park districts the same authority to use Guaranteed Energy Savings Contracts that is currently granted to school districts, municipalities, community colleges and state universities. Park districts across the state have deferred maintenance on facilities built in the 1960s and 1970s. Allowing park districts to enter into Energy Conservation Performance Contracts with a maximum length of 10 years will help park districts upgrade facilities by making them more energy efficient without any additional cost to the taxpayers.

Virtual Meeting Attendance

With the signing of Senate Bill 585 (Public Act 94-1058), effective January 1, 2007, attendance at a meeting by a means other than physical presence is permissible under certain conditions. Specifically: (a) If a quorum of the members of the public body is physically present, a majority of the public body may allow a member of that body to attend the meeting by other means if the member is prevented from physically attending because of: (i) personal illness or disability; (ii) employment purposes or the business of the public body; or (iii) a family or other emergency.

"Other means" is by video or audio conference.

(b)  If a member wishes to attend a meeting by other ddmeans, the member must notify the recording secretary or clerk of the public body before the meeting unless advance notice is impractical.

(c) A majority of the public body may allow a member to attend a meeting by other means only in accordance with and to the extent allowed by rules adopted by the public body. The rules must conform to the requirements and restrictions of Section 7 of the Open Meetings Act, may further limit the extent to which attendance by other means is allowed and may provide for the giving of additional notice to the public or further facilitate public access to meetings.

Referendum Procedures

Senate Bill 1682 (Public Act 94-976) sets forth procedures that taxing districts must follow when seeking referendum approval after April 5, 2005 to increase (i) the maximum authorized tax rate for any fund for which the taxing district is authorized by statute to levy taxes and which rate is limited by prior referendum or statutory authorization and which rate is authorized by statute to be increased for a limited or unlimited number of years by direct (and not back door) referendum, except for increases that require an equal corresponding tax rate decrease for another fund or (ii) the maximum extended tax rate applicable only to the next taxes to be either levied or extended for any fund notwithstanding the limiting rate that would otherwise be applicable for such taxing district, which maximum extended tax rate applicable to the next taxes shall not exceed the tax rate for such fund.

The measure sets forth requirements for the form of ballot propositions and referendum notices and sets forth procedures for setting the new tax rates. The measure provides that a taxing district is limited to an extension limitation (instead of "extension increase") of five percent or the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year, whichever is less.

Changes to the Prevailing Wage Act

Senate Bill 2399 (Public Act 94-1023) amends the Prevailing Wage Act to provide that the certified payroll submitted monthly by a contractor or subcontractor may exclude the starting and ending times of work each day. The measure requires the contractor and each subcontractor to make the certified payroll records available to the public body in charge of the project, its officers and agents and to the director of labor and his or her deputies and agents upon seven (rather than two) days' notice. The measure is effective immediately.

Local Regulation of Smoking

Senate Bill 2400 (Public Act 94-917) on-home rule counties, in addition to home rule units and non-home rule municipalities, to regulate smoking in public places in a manner no less restrictive than regulation under the Act. The measure

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allows all municipalities and counties to regulate smoking in any enclosed indoor area used by the public or serving as a place of work, if the area does not fall within the definition of a "public place" under the Act. The measure is effective immediately.

Prohibitions on the Use of Eminent Domain

Senate Bill 3086 (Public Act 94-1055) amends the Statute on Statutes. This is an extensive rewrite of eminent domain law for Illinois. The legislation is available on the General Assembly's Web site (www.ilga.gov).

The measure provides that in all eminent domain actions in which a property owner is displaced, the displacing entity must pay certain costs related to the relocation and displacement of the property owner's residence, business or farm operation. The measure also makes changes concerning the valuation of condemned property and establishes guidelines for determining reasonable attorney's fees (i) if the court awards just compensation that exceeds the initial written offer of the condemning authority and (ii) if the court determines that the taking is not warranted.

The effective date of these changes is January 1, 2007.

Local Government Consolidation Commission

The first meeting of the Local Government Consolidation Commission was slated for August 29. As reported in this column, this commission is an outgrowth of a bill introduced by Representative Lou Lang The commission is required to make a final report to the Illinois General Assembly by December 31, 2006 on its recommendations to consolidate or reduce the number of units of local government in the state of Illinois. There will be more to follow on this issue.

Consumer Price Index Rises for 2006 - Extension Limit is 3.4 Percent

Section 18-185 of the Property Tax Code defines CPI as "the Consumer Price Index for all Urban Consumers for all items published by the United States Department of Labor." This index is sometimes referred to as CPI-U. Section 18-185 defines "extension limitation" as "the lesser of 5% or the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year."

For the 2006 extension (taxes payable in 2007), the CPI change is measured from December 2004 to December 2005. The U.S City Average CPI for December 2004 was 190.3 and for December 2005 was 196.8, so the change to be used for computing the extension limitation under Section 18-185 is 3.4%. This percentage change was calculated by subtracting the December 2004 CPI (190.3) from the December 2005 CPI (196.8), and then dividing the result by the December 2004 CPI (190.3).

Illinois Department of Revenue History of CPIs Used for the PTELL

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