DISSOLVE SPECIAL DISTRICTS ACT
HB5166 creates a new, county-specific process for dissolving drainage districts and sanitary districts in Illinois counties with more than 650,000 but fewer than 1,000,000 residents. The bill allows dissolution only if a majority of the dissolving district’s governing body and a majority of the receiving local government’s governing body both approve the transfer, and it requires the dissolution plan to specify a date and a receiving unit of local government.
The bill requires that, by the dissolution date, all property, assets, personnel, contractual obligations, rights, duties, and liabilities of the dissolving district be transferred to the receiving local government. It also requires the receiving government to submit a service continuation plan showing it has the resources to keep providing the district’s services. In addition, both the dissolving district and the receiving government must notify the Illinois Department of Revenue and affected counties within 30 days and provide certified copies of the relevant ordinances or resolutions, especially for purposes of ending or changing any special-district taxes.
HB5166 amends the Illinois Drainage Code and the Sanitary District Act of 1936 by adding new dissolution provisions for drainage districts and sanitary districts in mid-sized counties. It creates a new statutory mechanism for transferring special-district functions to municipalities, townships, counties, or other local governments, and it imposes notice, documentation, and service-continuity requirements tied to tax administration and the assumption of liabilities.
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or opposition in the available materials. Based on the bill text, the measure appears administrative and transitional in nature, aimed at orderly consolidation or elimination of special districts while preserving services and clarifying responsibility for assets and debts.
The main likely points of contention are the mandatory transfer of liabilities and personnel to the receiving local government, the requirement that the receiving unit demonstrate it can continue services, and the county population limitation that makes the bill applicable only to certain counties. Stakeholders such as drainage or sanitary district boards, county governments, municipalities, townships, taxpayers, and the Department of Revenue could differ over whether dissolution should be easier, who should inherit financial obligations, and how special-district taxes should be discontinued or adjusted.