Bill Text: IL HB5669 | 2011-2012 | 97th General Assembly | Introduced
Bill Title: Creates the Local Government Bankruptcy Neutral Evaluation Act. Makes legislative findings. Defines terms. Authorizes a local public entity to initiate a neutral evaluation process if that entity is or likely will become unable to meet its financial obligations as and when those obligations are due or become due and owing. Sets forth procedures concerning the selection and qualifications of an evaluator, the evaluation process, cessation of an evaluation, declaration of a fiscal emergency, and liabilities. Further provides that any meetings or writings made in connection with the neutral evaluation process shall be prohibited from public viewing. Amends the Open Meetings Act. Provides that a public body may hold closed meetings when the meetings are made pursuant to the Local Government Bankruptcy Neutral Evaluation Act. Amends the Freedom of Information Act. Provides that all records and information prohibited from being disclosed pursuant to the Local Government Bankruptcy Neutral Evaluation Act are exempt from inspection and copying.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [HB5669 Detail]
Download: Illinois-2011-HB5669-Introduced.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Local | |||||||||||||||||||||||
5 | Government Bankruptcy Neutral Evaluation Act.
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6 | Section 3. Findings. Filing for Chapter 9 can reduce | |||||||||||||||||||||||
7 | service levels to the taxpayers and residents of a local public | |||||||||||||||||||||||
8 | entity. In some circumstances, it can have major short-and | |||||||||||||||||||||||
9 | long-term fiscal consequences for the entity, the surrounding | |||||||||||||||||||||||
10 | entities, and the State. Filing for bankruptcy protection under | |||||||||||||||||||||||
11 | Chapter 9 should be considered a last resort, to be instituted | |||||||||||||||||||||||
12 | only after other reasonable efforts have been made to avoid a | |||||||||||||||||||||||
13 | bankruptcy filing or otherwise appropriately plan for it. It is | |||||||||||||||||||||||
14 | in the interest of the State, units of local government, and | |||||||||||||||||||||||
15 | the public that local governmental entities have sufficiently | |||||||||||||||||||||||
16 | sound financial capacity to provide required services to the | |||||||||||||||||||||||
17 | public and meet their contractual and other obligations during | |||||||||||||||||||||||
18 | any restructuring or financial reorganization process. | |||||||||||||||||||||||
19 | Furthermore, it is in the best interest of the public, the | |||||||||||||||||||||||
20 | State, and local governmental entities that employees, trade | |||||||||||||||||||||||
21 | creditors, bondholders, and other interest-holders be included | |||||||||||||||||||||||
22 | in an appropriate restructuring process and have an adequate | |||||||||||||||||||||||
23 | understanding of the financial capacity of local governmental |
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1 | entities and their obligations, as a clear understanding of | ||||||
2 | both is necessary for any restructuring or reorganization | ||||||
3 | process. | ||||||
4 | To the extent financial relief granted through Chapter 9 | ||||||
5 | can affect debt service payments, the bondholders have a direct | ||||||
6 | interest in the Chapter 9 process, particularly prior to | ||||||
7 | filing. Therefore, it is important for those parties to be able | ||||||
8 | to participate in a prefiling confidential neutral evaluation | ||||||
9 | process that could assist parties in reaching a settlement and | ||||||
10 | avoiding a bankruptcy filing or otherwise lead to a | ||||||
11 | pre-negotiated consensual plan of readjustment as clearly | ||||||
12 | contemplated by subsection (c) of Section 109 of Title 11 of | ||||||
13 | the United States Code. | ||||||
14 | To the extent financial relief granted through Chapter 9 | ||||||
15 | could affect public employee compensation, employees have a | ||||||
16 | direct interest in the Chapter 9 process, particularly prior to | ||||||
17 | filing.
Therefore, it is important for those parties to be able | ||||||
18 | to participate in a prefiling confidential neutral evaluation | ||||||
19 | process that could assist parties in reaching a settlement or | ||||||
20 | otherwise lead to a pre-negotiated, consensual plan of | ||||||
21 | adjustment and avoid a Chapter 9 filing. | ||||||
22 | Given the connection between State allocations and local | ||||||
23 | budgets, the State has a role in assisting local public | ||||||
24 | entities to address potential insolvency with the goal of | ||||||
25 | averting bankruptcy filings where possible and providing a | ||||||
26 | process designed to make the debt restructuring process in or |
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1 | outside of a Chapter 9 bankruptcy as cost effective and | ||||||
2 | efficient as possible for all participants.
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3 | Illinois taxpayers who rely on public safety, senior, | ||||||
4 | recreational, health, library, and other public services, as | ||||||
5 | well as those who own and operate businesses in our | ||||||
6 | communities, deserve every reasonable and appropriate effort | ||||||
7 | that State and local government can make to avoid adverse | ||||||
8 | consequences of Chapter 9 bankruptcy filings, particularly | ||||||
9 | where a neutral evaluation may lead to the avoidance of Chapter | ||||||
10 | 9 filing by an out-of-court resolution of outstanding | ||||||
11 | obligations and disputes.
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12 | Resolving local and State business and financial issues in | ||||||
13 | a timely, fair, and cost-effective manner is an integral part | ||||||
14 | of a successful government and is in the public interest. It | ||||||
15 | has long been recognized that alternative dispute resolution | ||||||
16 | proceedings, like a neutral evaluation, offer an economical, | ||||||
17 | discreet, and expeditious way to resolve potentially | ||||||
18 | devastating situations.
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19 | Through the neutral evaluation process, the neutral | ||||||
20 | evaluator, a specially trained, neutral third party, can assist | ||||||
21 | the local public entity and its creditors and stakeholders to | ||||||
22 | fully explore alternatives, while allowing the interested | ||||||
23 | parties to exchange information in a confidential environment | ||||||
24 | with the assistance and supervision of a neutral evaluator to | ||||||
25 | determine whether the entity's contractual and financial | ||||||
26 | obligations can be renegotiated on a consensual basis.
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1 | Section 5. Eligibility. A local public entity in this State | ||||||
2 | may file a petition and exercise powers pursuant to applicable | ||||||
3 | federal bankruptcy law if either of the following apply:
(i) | ||||||
4 | the local public entity has participated in a neutral | ||||||
5 | evaluation process pursuant to Section 15 of this Act, or
(ii) | ||||||
6 | the local public entity declares a fiscal emergency and adopts | ||||||
7 | a resolution by a majority vote of the governing board pursuant | ||||||
8 | to Section 20 of this Act.
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9 | Section 10. Definitions. As used in this Act the following | ||||||
10 | terms mean: | ||||||
11 | "Chapter 9" means Chapter 9 of Title 11 of the United | ||||||
12 | States Code. | ||||||
13 | "Creditor" means either of the following: | ||||||
14 | An entity that has a noncontingent claim against a | ||||||
15 | municipality that arose at the time of or before the | ||||||
16 | commencement of the neutral evaluation process and whose | ||||||
17 | claim represents at least $5,000,000 or comprises more than | ||||||
18 | 5% of the local public entity's debt or obligations, | ||||||
19 | whichever is less. | ||||||
20 | An entity that would have a noncontingent claim against | ||||||
21 | the municipality upon the rejection of an executory | ||||||
22 | contract or unexpired lease in a Chapter 9 case and whose | ||||||
23 | claim would represent at least $5,000,000 or comprises more | ||||||
24 | than 5% of the local public entity's debt or obligations, |
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1 | whichever is less. | ||||||
2 | "Debtor" means a local public entity that may file for | ||||||
3 | bankruptcy under Chapter 9. | ||||||
4 | "Good faith" means participation by a party in the neutral | ||||||
5 | evaluation process with the intent to negotiate toward a | ||||||
6 | resolution of the issues that are the subject of the neutral | ||||||
7 | evaluation process, including the timely provision of complete | ||||||
8 | and accurate information to provide the relevant parties | ||||||
9 | through the neutral evaluation process with sufficient | ||||||
10 | information, in a confidential manner, to negotiate the | ||||||
11 | readjustment of the local public entity's debt.
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12 | "Interested party" means a trustee, a committee of | ||||||
13 | creditors, an affected creditor, an indenture trustee, a | ||||||
14 | pension fund, a bondholder, a union that, under its collective | ||||||
15 | bargaining agreements, has standing to initiate contract or | ||||||
16 | debt restructuring negotiations with the local public entity, | ||||||
17 | or a representative selected by an association of retired | ||||||
18 | employees of the public entity who receive income from the | ||||||
19 | public entity convening the neutral evaluation. A local public | ||||||
20 | entity may invite holders of contingent claims to participate | ||||||
21 | as interested parties in the neutral evaluation if the local | ||||||
22 | public entity determines that the contingency is likely to | ||||||
23 | occur and the claim may represent $5,000,000 or comprise more | ||||||
24 | than 5% of the local public entity's debt or obligations, | ||||||
25 | whichever is less.
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26 | "Local public entity" means any county, municipality, |
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1 | township, special district, public authority, public agency, | ||||||
2 | or other entity that is a political subdivision or public | ||||||
3 | agency or instrumentality of the State, or that qualifies as a | ||||||
4 | debtor under any other federal bankruptcy law applicable to | ||||||
5 | local public entities.
For purposes of this Act, "local public | ||||||
6 | entity" does not include a school district.
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7 | "Local public entity representative" means the person or | ||||||
8 | persons designated by the local public agency with authority to | ||||||
9 | make recommendations and to attend the neutral evaluation on | ||||||
10 | behalf of the governing body of the local public agency.
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11 | "Neutral evaluation" is a form of alternative dispute | ||||||
12 | resolution that may be known as mandatory mediation. A "neutral | ||||||
13 | evaluator" may also be known as a mediator.
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14 | Section 15. Neutral evaluation process. | ||||||
15 | (a) A local public entity may initiate the neutral | ||||||
16 | evaluation process if the local public entity is or likely will | ||||||
17 | become unable to meet its financial obligations as and when | ||||||
18 | those obligations are due or become due and owing. The local | ||||||
19 | public entity shall initiate the neutral evaluation by | ||||||
20 | providing notice by certified mail of a request for neutral | ||||||
21 | evaluation to all interested parties, as defined in Section 10 | ||||||
22 | of this Act.
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23 | (b) Interested parties shall respond within 10 business | ||||||
24 | days after receipt of notice of the local public entity's | ||||||
25 | request for neutral evaluation. |
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1 | (c) The local public entity and the interested parties | ||||||
2 | agreeing to participate in the neutral evaluation shall, | ||||||
3 | through a mutually agreed upon process, select the neutral | ||||||
4 | evaluator to oversee the neutral evaluation process and | ||||||
5 | facilitate all discussions in an effort to resolve their | ||||||
6 | disputes. | ||||||
7 | If the local public entity and interested parties fail to | ||||||
8 | agree on a neutral evaluator within 7 days after the interested | ||||||
9 | parties have responded to the notification sent by the public | ||||||
10 | entity, the public entity shall select 5 qualified neutral | ||||||
11 | evaluators and provide their names, references, and | ||||||
12 | backgrounds to the participating interested parties. Within 3 | ||||||
13 | business days, a majority of participating interested parties | ||||||
14 | may strike up to 4 names from the list. If a majority of | ||||||
15 | participating interested parties strikes 4 names, the | ||||||
16 | remaining candidate shall be the neutral evaluator. If the | ||||||
17 | majority of participating parties strikes fewer than 4 names, | ||||||
18 | the local public entity may choose which of the remaining | ||||||
19 | candidates shall be the neutral evaluator.
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20 | (d) A neutral evaluator shall have experience and training | ||||||
21 | in conflict resolution and alternative dispute resolution and | ||||||
22 | shall meet at least one of the following qualifications: | ||||||
23 | (1) at least 10 years of high-level business or legal | ||||||
24 | practice involving bankruptcy or service as a United States | ||||||
25 | Bankruptcy Judge; or | ||||||
26 | (2) professional experience or training in local |
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1 | government finance and one or more of the following areas: | ||||||
2 | local government organization, local government debt | ||||||
3 | restructuring, local government finances dispute | ||||||
4 | resolution, Chapter 9 bankruptcy, public finance, | ||||||
5 | taxation, Illinois Constitutional law, Illinois labor law, | ||||||
6 | or federal labor law. | ||||||
7 | (e) The neutral evaluator shall be impartial, objective, | ||||||
8 | independent, and free from prejudice. The neutral evaluator | ||||||
9 | shall not act with partiality or prejudice based on any | ||||||
10 | participant's personal characteristics, background, values or | ||||||
11 | beliefs, or performance during the neutral evaluation process. | ||||||
12 | (f) The neutral evaluator shall avoid a conflict of | ||||||
13 | interest or the appearance of a conflict of interest during the | ||||||
14 | neutral evaluation process. The neutral evaluator shall make a | ||||||
15 | reasonable inquiry to determine whether there are any facts | ||||||
16 | that a reasonable individual would consider likely to create a | ||||||
17 | potential or actual conflict of interest. Notwithstanding | ||||||
18 | subsection (n) of this Section, if the neutral evaluator is | ||||||
19 | informed of the existence of any facts that a reasonable | ||||||
20 | individual would consider likely to create a potential or | ||||||
21 | actual conflict of interest, the neutral evaluator shall | ||||||
22 | disclose these facts in writing to the local public entity and | ||||||
23 | all interested parties involved in the neutral evaluation. If | ||||||
24 | any party to the neutral evaluation objects to the neutral | ||||||
25 | evaluator, that party shall notify all other parties to the | ||||||
26 | neutral evaluation, including the neutral evaluator, within 15 |
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1 | days after receipt of the notice from the neutral evaluator, | ||||||
2 | and the neutral evaluator shall withdraw and a new neutral | ||||||
3 | evaluator shall be selected pursuant to subsections (a) and (b) | ||||||
4 | of this Section.
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5 | (g) Prior to the neutral evaluation process, the neutral | ||||||
6 | evaluator shall not establish another relationship with any of | ||||||
7 | the parties in a manner that would raise questions about the | ||||||
8 | integrity of the neutral evaluation, except that the neutral | ||||||
9 | evaluator may conduct further neutral evaluations regarding | ||||||
10 | other potential local public entities that may involve some of | ||||||
11 | the same or similar constituents to a prior mediation. | ||||||
12 | (h) The neutral evaluator shall conduct the neutral | ||||||
13 | evaluation process in a manner that promotes voluntary, | ||||||
14 | uncoerced decision-making in which each party makes free and | ||||||
15 | informed choices regarding the process and outcome.
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16 | (i) The neutral evaluator shall not impose a settlement on | ||||||
17 | the parties. The neutral evaluator shall use his or her best | ||||||
18 | efforts to assist the parties to reach a satisfactory | ||||||
19 | resolution of their disputes. Subject to the discretion of the | ||||||
20 | neutral evaluator, the neutral evaluator may make oral or | ||||||
21 | written recommendations for settlement or plan of readjustment | ||||||
22 | to a party privately or to all parties jointly.
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23 | (j) The neutral evaluator shall inform the local public | ||||||
24 | entity and all parties of the provisions of Chapter 9 relative | ||||||
25 | to other chapters of the bankruptcy codes. This instruction | ||||||
26 | shall highlight the limited authority of United States |
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1 | bankruptcy judges in Chapter 9, including the lack of | ||||||
2 | flexibility available to judges to reduce or cram down debt | ||||||
3 | repayments and similar efforts not available to reorganize the | ||||||
4 | operations of the city that may be available to a corporate | ||||||
5 | entity.
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6 | (k) The neutral evaluator may request from the parties | ||||||
7 | documentation and other information that the neutral evaluator | ||||||
8 | believes may be helpful in assisting the parties to address the | ||||||
9 | obligations between them. This documentation may include the | ||||||
10 | status of funds of the local public entity that clearly | ||||||
11 | distinguishes between general funds and special funds, and the | ||||||
12 | proposed plan of readjustment prepared by the local public | ||||||
13 | entity.
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14 | (l) The neutral evaluator shall provide counsel and | ||||||
15 | guidance to all parties, shall not be a legal representative of | ||||||
16 | any party, and shall not have a fiduciary duty to any party.
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17 | (m) In the event of a settlement with all interested | ||||||
18 | parties, the neutral evaluator may assist the parties in | ||||||
19 | negotiating a pre-petitioned, pre-agreed plan of readjustment | ||||||
20 | in connection with a potential Chapter 9 filing.
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21 | (n) If at any time during the neutral evaluation process | ||||||
22 | the local public entity and a majority of the representatives | ||||||
23 | of the interested parties participating in the neutral | ||||||
24 | evaluation wish to remove the neutral evaluator, the local | ||||||
25 | public entity or any interested party may make a request to the | ||||||
26 | other interested parties to remove the neutral evaluator. If |
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1 | the local public entity and the majority of the interested | ||||||
2 | parties agree that the neutral evaluator should be removed, the | ||||||
3 | parties shall select a new neutral evaluator. | ||||||
4 | (o) The local public entity and all interested parties | ||||||
5 | participating in the neutral evaluation process shall | ||||||
6 | negotiate in good faith.
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7 | (p) The local public entity and interested parties shall | ||||||
8 | provide a representative of each party to attend all neutral | ||||||
9 | evaluation sessions. Each representative shall have the | ||||||
10 | authority to settle and resolve disputes or shall be in a | ||||||
11 | position to present any proposed settlement or plan of | ||||||
12 | readjustment to the parties participating in the neutral | ||||||
13 | evaluation.
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14 | (q) The parties shall maintain the confidentiality of the | ||||||
15 | neutral evaluation process and shall not disclose statements | ||||||
16 | made, information disclosed, or documents prepared or | ||||||
17 | produced, during the neutral evaluation process, at the | ||||||
18 | conclusion of the neutral evaluation process or during any | ||||||
19 | bankruptcy proceeding unless either of the following occur:
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20 | (i) all persons that conduct or otherwise participate | ||||||
21 | in the neutral evaluation expressly agree in writing or | ||||||
22 | orally to disclosure of the communication, document, or | ||||||
23 | writing; or
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24 | (ii) the information is deemed necessary by a judge | ||||||
25 | presiding over a bankruptcy proceeding pursuant to Chapter | ||||||
26 | 9 of Title 11 of the United States Code to determine |
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1 | eligibility of a local public entity to proceed with a | ||||||
2 | bankruptcy proceeding pursuant to subsection (c) of | ||||||
3 | Section 109 of Title 11 of the United States Code.
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4 | (r) The neutral evaluation established by this process | ||||||
5 | shall not last for more than 60 days after the date the | ||||||
6 | evaluator is selected, unless the local public entity or a | ||||||
7 | majority of participating interested parties elect to extend | ||||||
8 | the process for up to 30 additional days. The neutral | ||||||
9 | evaluation process shall not last for more than 90 days after | ||||||
10 | the date the evaluator is selected unless the local public | ||||||
11 | entity and a majority of the interested parties agree to an | ||||||
12 | extension.
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13 | (s) The local public entity shall pay 50% of the costs of | ||||||
14 | neutral evaluation, including but not limited to the fees of | ||||||
15 | the evaluator, and the creditors shall pay the balance, unless | ||||||
16 | otherwise agreed to by the parties.
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17 | (t) The neutral evaluation process shall end if any of the | ||||||
18 | following occur:
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19 | (i) the parties execute an settlement agreement; | ||||||
20 | (ii) the parties reach an agreement or proposed plan of | ||||||
21 | readjustment that requires the approval of a bankruptcy | ||||||
22 | judge; | ||||||
23 | (iii) the neutral evaluation process has exceeded 60 | ||||||
24 | days after the date the neutral evaluator was selected, the | ||||||
25 | parties have not reached an agreement, and neither the | ||||||
26 | local public entity or a majority of the interested parties |
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1 | elect to extend the neutral evaluation process past the | ||||||
2 | initial 60-day time period;
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3 | (iv) the local public entity initiated the neutral | ||||||
4 | evaluation process pursuant to subsection (a) of this | ||||||
5 | Section and received no responses from interested parties | ||||||
6 | within the time specified in subsection (b) of this | ||||||
7 | Section; or
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8 | (v) the fiscal condition of the local public entity | ||||||
9 | deteriorates to the point that a fiscal emergency is | ||||||
10 | declared pursuant to Section 20 of this Act and | ||||||
11 | necessitates the need to file a petition and exercise | ||||||
12 | powers pursuant to applicable federal bankruptcy law.
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13 | Section 20. Declaration of fiscal emergency. | ||||||
14 | Notwithstanding any other Section of this Act, a local public | ||||||
15 | entity may file a petition and exercise powers pursuant to | ||||||
16 | applicable federal bankruptcy law, if the local public entity | ||||||
17 | declares a fiscal emergency and adopts a resolution by a | ||||||
18 | majority vote of the governing board at a noticed public | ||||||
19 | hearing that includes findings that the financial state of the | ||||||
20 | local public entity jeopardizes the health, safety, or | ||||||
21 | well-being of the residents of the local public entity's | ||||||
22 | jurisdiction or service area absent the protections of Chapter | ||||||
23 | 9. The resolution shall make findings that the public entity is | ||||||
24 | or will be unable to pay its obligations within the next 60 | ||||||
25 | days. Prior to a declaration of fiscal emergency and adoption |
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1 | of a resolution, the local public entity shall place an item on | ||||||
2 | the agenda of a noticed public hearing on the fiscal condition | ||||||
3 | of the entity to take public comment. The board of supervisors | ||||||
4 | of a county that intends to take action pursuant to this | ||||||
5 | Section and places a notice on an agenda regarding a proposed | ||||||
6 | resolution to declare a fiscal emergency may require local | ||||||
7 | agencies with funds invested in the county treasury to provide | ||||||
8 | a 5-day notice of withdrawal before the county is required to | ||||||
9 | comply with a request for withdrawal of funds by that local | ||||||
10 | agency.
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11 | Section 25. Liabilities. This Act shall not impose any | ||||||
12 | liability or responsibility, in law or equity, upon the State, | ||||||
13 | any department, agency, or other entity of the State, or any | ||||||
14 | officer or employee of the State, for any action taken by any | ||||||
15 | local public entity pursuant to this Act, for any violation of | ||||||
16 | the provisions of this Act by any local public entity, or for | ||||||
17 | any failure to comply with the provisions of this Act by any | ||||||
18 | local public entity. No cause of action against the State, or | ||||||
19 | any department, agency, entity of the State, or any officer or | ||||||
20 | employee of the State acting in their official capacity may be | ||||||
21 | maintained for any activity authorized by this Act, or for the | ||||||
22 | act of a local public entity filing under Chapter 9 of Title 11 | ||||||
23 | of the United States Code, including any proceeding following a | ||||||
24 | local public entity's filing.
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1 | Section 30. Public access; meetings and information. Any | ||||||
2 | meetings or writings made pursuant to this Act are prohibited | ||||||
3 | from being disclosed to the public.
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4 | Section 35. The Open Meetings Act is amended by changing | ||||||
5 | Section 2 as follows:
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6 | (5 ILCS 120/2) (from Ch. 102, par. 42)
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7 | Sec. 2. Open meetings.
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8 | (a) Openness required. All meetings of public
bodies shall | ||||||
9 | be open to the public unless excepted in subsection (c)
and | ||||||
10 | closed in accordance with Section 2a.
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11 | (b) Construction of exceptions. The exceptions contained | ||||||
12 | in subsection
(c) are in derogation of the requirement that | ||||||
13 | public bodies
meet in the open, and therefore, the exceptions | ||||||
14 | are to be strictly
construed, extending only to subjects | ||||||
15 | clearly within their scope.
The exceptions authorize but do not | ||||||
16 | require the holding of
a closed meeting to discuss a subject | ||||||
17 | included within an enumerated exception.
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18 | (c) Exceptions. A public body may hold closed meetings to | ||||||
19 | consider the
following subjects:
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20 | (1) The appointment, employment, compensation, | ||||||
21 | discipline, performance,
or dismissal of specific | ||||||
22 | employees of the public body or legal counsel for
the | ||||||
23 | public body, including hearing
testimony on a complaint | ||||||
24 | lodged against an employee of the public body or
against |
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1 | legal counsel for the public body to determine its | ||||||
2 | validity.
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3 | (2) Collective negotiating matters between the public | ||||||
4 | body and its
employees or their representatives, or | ||||||
5 | deliberations concerning salary
schedules for one or more | ||||||
6 | classes of employees.
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7 | (3) The selection of a person to fill a public office,
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8 | as defined in this Act, including a vacancy in a public | ||||||
9 | office, when the public
body is given power to appoint | ||||||
10 | under law or ordinance, or the discipline,
performance or | ||||||
11 | removal of the occupant of a public office, when the public | ||||||
12 | body
is given power to remove the occupant under law or | ||||||
13 | ordinance.
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14 | (4) Evidence or testimony presented in open hearing, or | ||||||
15 | in closed
hearing where specifically authorized by law, to
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16 | a quasi-adjudicative body, as defined in this Act, provided | ||||||
17 | that the body
prepares and makes available for public | ||||||
18 | inspection a written decision
setting forth its | ||||||
19 | determinative reasoning.
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20 | (5) The purchase or lease of real property for the use | ||||||
21 | of
the public body, including meetings held for the purpose | ||||||
22 | of discussing
whether a particular parcel should be | ||||||
23 | acquired.
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24 | (6) The setting of a price for sale or lease of | ||||||
25 | property owned
by the public body.
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26 | (7) The sale or purchase of securities, investments, or |
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1 | investment
contracts.
| ||||||
2 | (8) Security procedures and the use of personnel and
| ||||||
3 | equipment to respond to an actual, a threatened, or a | ||||||
4 | reasonably
potential danger to the safety of employees, | ||||||
5 | students, staff, the public, or
public
property.
| ||||||
6 | (9) Student disciplinary cases.
| ||||||
7 | (10) The placement of individual students in special | ||||||
8 | education
programs and other matters relating to | ||||||
9 | individual students.
| ||||||
10 | (11) Litigation, when an action against, affecting or | ||||||
11 | on behalf of the
particular public body has been filed and | ||||||
12 | is pending before a court or
administrative tribunal, or | ||||||
13 | when the public body finds that an action is
probable or | ||||||
14 | imminent, in which case the basis for the finding shall be
| ||||||
15 | recorded and entered into the minutes of the closed | ||||||
16 | meeting.
| ||||||
17 | (12) The establishment of reserves or settlement of | ||||||
18 | claims as provided
in the Local Governmental and | ||||||
19 | Governmental Employees Tort Immunity Act, if
otherwise the | ||||||
20 | disposition of a claim or potential claim might be
| ||||||
21 | prejudiced, or the review or discussion of claims, loss or | ||||||
22 | risk management
information, records, data, advice or | ||||||
23 | communications from or with respect
to any insurer of the | ||||||
24 | public body or any intergovernmental risk management
| ||||||
25 | association or self insurance pool of which the public body | ||||||
26 | is a member.
|
| |||||||
| |||||||
1 | (13) Conciliation of complaints of discrimination in | ||||||
2 | the sale or rental
of housing, when closed meetings are | ||||||
3 | authorized by the law or ordinance
prescribing fair housing | ||||||
4 | practices and creating a commission or
administrative | ||||||
5 | agency for their enforcement.
| ||||||
6 | (14) Informant sources, the hiring or assignment of | ||||||
7 | undercover personnel
or equipment, or ongoing, prior or | ||||||
8 | future criminal investigations, when
discussed by a public | ||||||
9 | body with criminal investigatory responsibilities.
| ||||||
10 | (15) Professional ethics or performance when | ||||||
11 | considered by an advisory
body appointed to advise a | ||||||
12 | licensing or regulatory agency on matters
germane to the | ||||||
13 | advisory body's field of competence.
| ||||||
14 | (16) Self evaluation, practices and procedures or | ||||||
15 | professional ethics,
when meeting with a representative of | ||||||
16 | a statewide association of which the
public body is a | ||||||
17 | member.
| ||||||
18 | (17) The recruitment, credentialing, discipline or | ||||||
19 | formal peer review
of physicians or other
health care | ||||||
20 | professionals for a hospital, or
other institution | ||||||
21 | providing medical care, that is operated by the public | ||||||
22 | body.
| ||||||
23 | (18) Deliberations for decisions of the Prisoner | ||||||
24 | Review Board.
| ||||||
25 | (19) Review or discussion of applications received | ||||||
26 | under the
Experimental Organ Transplantation Procedures |
| |||||||
| |||||||
1 | Act.
| ||||||
2 | (20) The classification and discussion of matters | ||||||
3 | classified as
confidential or continued confidential by | ||||||
4 | the State Government Suggestion Award
Board.
| ||||||
5 | (21) Discussion of minutes of meetings lawfully closed | ||||||
6 | under this Act,
whether for purposes of approval by the | ||||||
7 | body of the minutes or semi-annual
review of the minutes as | ||||||
8 | mandated by Section 2.06.
| ||||||
9 | (22) Deliberations for decisions of the State
| ||||||
10 | Emergency Medical Services Disciplinary
Review Board.
| ||||||
11 | (23) The operation by a municipality of a municipal | ||||||
12 | utility or the
operation of a
municipal power agency or | ||||||
13 | municipal natural gas agency when the
discussion involves | ||||||
14 | (i) contracts relating to the
purchase, sale, or delivery | ||||||
15 | of electricity or natural gas or (ii) the results
or | ||||||
16 | conclusions of load forecast studies.
| ||||||
17 | (24) Meetings of a residential health care facility | ||||||
18 | resident sexual
assault and death review
team or
the | ||||||
19 | Executive
Council under the Abuse Prevention Review
Team | ||||||
20 | Act.
| ||||||
21 | (25) Meetings of an independent team of experts under | ||||||
22 | Brian's Law. | ||||||
23 | (26) Meetings of a mortality review team appointed | ||||||
24 | under the Department of Juvenile Justice Mortality Review | ||||||
25 | Team Act. | ||||||
26 | (27) Confidential information, when discussed by one |
| |||||||
| |||||||
1 | or more members of an elder abuse fatality review team, | ||||||
2 | designated under Section 15 of the Elder Abuse and Neglect | ||||||
3 | Act, while participating in a review conducted by that team | ||||||
4 | of the death of an elderly person in which abuse or neglect | ||||||
5 | is suspected, alleged, or substantiated; provided that | ||||||
6 | before the review team holds a closed meeting, or closes an | ||||||
7 | open meeting, to discuss the confidential information, | ||||||
8 | each participating review team member seeking to disclose | ||||||
9 | the confidential information in the closed meeting or | ||||||
10 | closed portion of the meeting must state on the record | ||||||
11 | during an open meeting or the open portion of a meeting the | ||||||
12 | nature of the information to be disclosed and the legal | ||||||
13 | basis for otherwise holding that information confidential. | ||||||
14 | (28) Correspondence and records (i) that may not be | ||||||
15 | disclosed under Section 11-9 of the Public Aid Code or (ii) | ||||||
16 | that pertain to appeals under Section 11-8 of the Public | ||||||
17 | Aid Code. | ||||||
18 | (29) (28) Meetings between internal or external | ||||||
19 | auditors and governmental audit committees, finance | ||||||
20 | committees, and their equivalents, when the discussion | ||||||
21 | involves internal control weaknesses, identification of | ||||||
22 | potential fraud risk areas, known or suspected frauds, and | ||||||
23 | fraud interviews conducted in accordance with generally | ||||||
24 | accepted auditing standards of the United States of | ||||||
25 | America. | ||||||
26 | (30) Meetings held pursuant to the Local Government |
| |||||||
| |||||||
1 | Bankruptcy Neutral Evaluation Act. | ||||||
2 | (d) Definitions. For purposes of this Section:
| ||||||
3 | "Employee" means a person employed by a public body whose | ||||||
4 | relationship
with the public body constitutes an | ||||||
5 | employer-employee relationship under
the usual common law | ||||||
6 | rules, and who is not an independent contractor.
| ||||||
7 | "Public office" means a position created by or under the
| ||||||
8 | Constitution or laws of this State, the occupant of which is | ||||||
9 | charged with
the exercise of some portion of the sovereign | ||||||
10 | power of this State. The term
"public office" shall include | ||||||
11 | members of the public body, but it shall not
include | ||||||
12 | organizational positions filled by members thereof, whether
| ||||||
13 | established by law or by a public body itself, that exist to | ||||||
14 | assist the
body in the conduct of its business.
| ||||||
15 | "Quasi-adjudicative body" means an administrative body | ||||||
16 | charged by law or
ordinance with the responsibility to conduct | ||||||
17 | hearings, receive evidence or
testimony and make | ||||||
18 | determinations based
thereon, but does not include
local | ||||||
19 | electoral boards when such bodies are considering petition | ||||||
20 | challenges.
| ||||||
21 | (e) Final action. No final action may be taken at a closed | ||||||
22 | meeting.
Final action shall be preceded by a public recital of | ||||||
23 | the nature of the
matter being considered and other information | ||||||
24 | that will inform the
public of the business being conducted.
| ||||||
25 | (Source: P.A. 96-1235, eff. 1-1-11; 96-1378, eff. 7-29-10; | ||||||
26 | 96-1428, eff. 8-11-10; 97-318, eff. 1-1-12; 97-333, eff. |
| |||||||
| |||||||
1 | 8-12-11; 97-452, eff. 8-19-11; revised 9-2-11.)
| ||||||
2 | Section 40. The Freedom of Information Act is amended by | ||||||
3 | changing Section 7.5 as follows:
| ||||||
4 | (5 ILCS 140/7.5) | ||||||
5 | Sec. 7.5. Statutory Exemptions. To the extent provided for | ||||||
6 | by the statutes referenced below, the following shall be exempt | ||||||
7 | from inspection and copying: | ||||||
8 | (a) All information determined to be confidential under | ||||||
9 | Section 4002 of the Technology Advancement and Development Act. | ||||||
10 | (b) Library circulation and order records identifying | ||||||
11 | library users with specific materials under the Library Records | ||||||
12 | Confidentiality Act. | ||||||
13 | (c) Applications, related documents, and medical records | ||||||
14 | received by the Experimental Organ Transplantation Procedures | ||||||
15 | Board and any and all documents or other records prepared by | ||||||
16 | the Experimental Organ Transplantation Procedures Board or its | ||||||
17 | staff relating to applications it has received. | ||||||
18 | (d) Information and records held by the Department of | ||||||
19 | Public Health and its authorized representatives relating to | ||||||
20 | known or suspected cases of sexually transmissible disease or | ||||||
21 | any information the disclosure of which is restricted under the | ||||||
22 | Illinois Sexually Transmissible Disease Control Act. | ||||||
23 | (e) Information the disclosure of which is exempted under | ||||||
24 | Section 30 of the Radon Industry Licensing Act. |
| |||||||
| |||||||
1 | (f) Firm performance evaluations under Section 55 of the | ||||||
2 | Architectural, Engineering, and Land Surveying Qualifications | ||||||
3 | Based Selection Act. | ||||||
4 | (g) Information the disclosure of which is restricted and | ||||||
5 | exempted under Section 50 of the Illinois Prepaid Tuition Act. | ||||||
6 | (h) Information the disclosure of which is exempted under | ||||||
7 | the State Officials and Employees Ethics Act, and records of | ||||||
8 | any lawfully created State or local inspector general's office | ||||||
9 | that would be exempt if created or obtained by an Executive | ||||||
10 | Inspector General's office under that Act. | ||||||
11 | (i) Information contained in a local emergency energy plan | ||||||
12 | submitted to a municipality in accordance with a local | ||||||
13 | emergency energy plan ordinance that is adopted under Section | ||||||
14 | 11-21.5-5 of the Illinois Municipal Code. | ||||||
15 | (j) Information and data concerning the distribution of | ||||||
16 | surcharge moneys collected and remitted by wireless carriers | ||||||
17 | under the Wireless Emergency Telephone Safety Act. | ||||||
18 | (k) Law enforcement officer identification information or | ||||||
19 | driver identification information compiled by a law | ||||||
20 | enforcement agency or the Department of Transportation under | ||||||
21 | Section 11-212 of the Illinois Vehicle Code. | ||||||
22 | (l) Records and information provided to a residential | ||||||
23 | health care facility resident sexual assault and death review | ||||||
24 | team or the Executive Council under the Abuse Prevention Review | ||||||
25 | Team Act. | ||||||
26 | (m) Information provided to the predatory lending database |
| |||||||
| |||||||
1 | created pursuant to Article 3 of the Residential Real Property | ||||||
2 | Disclosure Act, except to the extent authorized under that | ||||||
3 | Article. | ||||||
4 | (n) Defense budgets and petitions for certification of | ||||||
5 | compensation and expenses for court appointed trial counsel as | ||||||
6 | provided under Sections 10 and 15 of the Capital Crimes | ||||||
7 | Litigation Act. This subsection (n) shall apply until the | ||||||
8 | conclusion of the trial of the case, even if the prosecution | ||||||
9 | chooses not to pursue the death penalty prior to trial or | ||||||
10 | sentencing. | ||||||
11 | (o) Information that is prohibited from being disclosed | ||||||
12 | under Section 4 of the Illinois Health and Hazardous Substances | ||||||
13 | Registry Act. | ||||||
14 | (p) Security portions of system safety program plans, | ||||||
15 | investigation reports, surveys, schedules, lists, data, or | ||||||
16 | information compiled, collected, or prepared by or for the | ||||||
17 | Regional Transportation Authority under Section 2.11 of the | ||||||
18 | Regional Transportation Authority Act or the St. Clair County | ||||||
19 | Transit District under the Bi-State Transit Safety Act. | ||||||
20 | (q) Information prohibited from being disclosed by the | ||||||
21 | Personnel Records Review Act. | ||||||
22 | (r) Information prohibited from being disclosed by the | ||||||
23 | Illinois School Student Records Act. | ||||||
24 | (s) Information the disclosure of which is restricted under | ||||||
25 | Section 5-108 of the Public Utilities Act.
| ||||||
26 | (t) All identified or deidentified health information in |
| |||||||
| |||||||
1 | the form of health data or medical records contained in, stored | ||||||
2 | in, submitted to, transferred by, or released from the Illinois | ||||||
3 | Health Information Exchange, and identified or deidentified | ||||||
4 | health information in the form of health data and medical | ||||||
5 | records of the Illinois Health Information Exchange in the | ||||||
6 | possession of the Illinois Health Information Exchange | ||||||
7 | Authority due to its administration of the Illinois Health | ||||||
8 | Information Exchange. The terms "identified" and | ||||||
9 | "deidentified" shall be given the same meaning as in the Health | ||||||
10 | Insurance Accountability and Portability Act of 1996, Public | ||||||
11 | Law 104-191, or any subsequent amendments thereto, and any | ||||||
12 | regulations promulgated thereunder. | ||||||
13 | (u) Records and information provided to an independent team | ||||||
14 | of experts under Brian's Law. | ||||||
15 | (v) Names and information of people who have applied for or | ||||||
16 | received Firearm Owner's Identification Cards under the | ||||||
17 | Firearm Owners Identification Card Act. | ||||||
18 | (w) (v) Personally identifiable information which is | ||||||
19 | exempted from disclosure under subsection (g) of Section 19.1 | ||||||
20 | of the Toll Highway Act. | ||||||
21 | (x) All records and information prohibited from being | ||||||
22 | disclosed by the Local Government Bankruptcy Neutral | ||||||
23 | Evaluation Act. | ||||||
24 | (Source: P.A. 96-542, eff. 1-1-10; 96-1235, eff. 1-1-11; | ||||||
25 | 96-1331, eff. 7-27-10; 97-80, eff. 7-5-11; 97-333, eff. | ||||||
26 | 8-12-11; 97-342, eff. 8-12-11; revised 9-2-11.)
|