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Attorney General Opinions

Craig retains pension

Former state Rep. Robert Craig (D., Danville), convicted of bribery charges in June 1976, should continue to receive pension benefits, according to the attorney general (S-1330). Only persons convicted of felony charges after July 11, 1955, "relating to or arising out of or in connection with his service as a member" will be denied pension benefits. (Ill. Rev. Stat. 1975, ch. 1081/2, sec. 2-156). Craig is exempt from pension denial since he entered service in the General Assembly prior to July 11, 1955. He was convicted of accepting a $30,000 bribe to ensure passage of legislation favorable to the concrete industry.

In a similar situation, the heirs of former Gov. Otto Kerner have been granted leave to appeal an appellate court denial of Kerner's rights to a state pension. The Illinois Supreme Court will eventually hear the case, and may clear up interpretation of the law denying pension funds to persons convicted of a felony in connection with state employment.

Property tax appeal

The attorney general clarified four questions dealing with property tax assessment (S-1337). First, the supervisor of assessments cannot change an assessment after it has been reviewed by the board of review. Second, the board of review has authority to hear an appeal on the assessment of a particular parcel of property, even though the owner-complainant did not own the property on the assessment date. Third, a complaining taxpayer may appeal the board of review's application of a township multiplier to the Property Tax Appeal Board. Fourth, the Property Tax Appeal Board does not have jurisdiction to hear appeals on the application of township multipliers by the Department of Local Government Affairs.

Veterans scholarships, S-1333: Veterans awarded scholarships to state universities do not have to pay tuition or fees even if money appropriated to the Department of Veterans' Affairs does not cover the scholarships. The attorney general advised the department that veterans are exempt from paying tuition and fees. If there is not enough money to fund veterans' scholarships, the university, college or community college must absorb the costs until funds are made available to the Department of Veterans' Affairs by the legislature, or given directly to the university as authorized by law.

Student loans, S-1344: The statutory period of limitations for "promisory notes, ... or other evidence of indebtedness in writing" (Ill. Rev. Stat. 1975, Ch. 83, sec. 16) of ten years does not apply to defaulted Illinois State Scholarship Commission guaranteed loans in which the commission pays the amount of the loss. The commission, which is authorized to guarantee loans made by lenders, such as banks, to college students (Ill. Rev. Stat. 1975, Ch. 122, sees. 30-15.10 and 30-15.12), is a state agency; and statutes Of limitations, unless expressly provided, do not run against the state when the state is collecting obligations owed to it. The commission becomes subrogated to the rights of the lender when it pays the loss, making the debt one owed to the state.

Sick leave, S-1338: A "sick leave bank" is a permissible means of structuring compensation for Board of Education employees. The Board is given discretion within the limits of appropriations and unless otherwise limited by law to determine the amount and form of compensation for its employees, including a reasonable allowance for sickness. In a "sick leave bank" each employee who chooses to participate will contribute one or more of his or her own sick-leave days each year to a pool. Any member of the pool that stays sick beyond his or her accumulated sick-leave days can draw additional days from the pool and continue to be paid throughout the illness. The pool amounts to an insurance plan based on days rather than dollars.

Mental health budget, S-1335: The county board in a community has the authority to increase or decrease the amount in the budget submitted by the community mental health board. The community mental health board does not appropriate, rather it proposes a budget that will fulfill its needs to the county board for approval (NP-98, 1969). The county board then determines the amount to be appropriated.

Electric cooperatives, S-1326: The Department of Local Government Affairs has the authority to assess capital stock of rural electric cooperatives. The attorney general said that capital stock "refers not to shares but to the aggregate property of a corporation. There is no general exemption for non-profit corporations nor any specific exemption for electrical cooperatives."

Retirement eligibility, S-1332: State employees must work a minimum of eight years under their respective retirement systems to become eligible for pension benefits under that system. In an opinion to the director of personnel, the attorney general explained that a retiree in question was not eligible for insurance benefits under the State Employees Retirement System because she had worked only one year under that system. Director William Boys explained the retiree previously worked under the State Teachers Retirement System and then came to work for the state. When she retired, she did so under the State Employees Retirement System. Boys questioned whether the state was improperly assuming payments of insurance premiums. He said that insurance premium payments had already been made to this retiree, and to others, but that the Personnel Department would not seek repayment. Boys said that future payments would probably be made from the system under which the employees had retired.

April 1978/Illinois Issues/31


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