Loading...
HomeMy WebLinkAboutOrd 6830 02/03/2026 Amending Chapter 5, "Board And Commissions", Article XVI, "Foreign Fire Insurance Tax Board" Of The Village Code Of Mount ProspectOrdinance No. 6830 AN ORDINANCE AMENDING CHAPTER 5, "BOARD AND COMMISSIONS", ARTICLE XVI, "FOREIGN FIRE INSURANCE TAX BOARD" OF THE VILLAGE CODE OF MOUNT PROSPECT WHEREAS, the Village of Mount Prospect (the "Village") is a home rule Illinois Municipal Corporation pursuant to Article VII, § 6 of the Illinois Constitution of 1970; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect desire to make certain amendments to the Village Code of Mount Prospect (the "Village Code") as set forth below; and WHEREAS, pursuant to its authority granted under Article VII, § 6 of the Illinois Constitution, the President and Board of Trustees of the Village of Mount Prospect find it in the best interest of the Village, the Village residents, and the public health, safety and welfare to amend the Village Code as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COUNTY OF COOK, STATE OF ILLINOIS AS FOLLOWS: SECTION ONE: Article XVI (Foreign Fire Insurance Tax Board) of Chapter 5 (Boards and Commissions), of the Village Code of Mount Prospect shall be amended to read as follows: Article XVI, "FOREIGN FIRE INSURANCE BOARD" of Chapter 5 (Boards and Commissions) of the Village Code of Mount Prospect SECTION TWO: Section 5.1600, "Definitions" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1600: CREATION AND PURPOSE: There is hereby established the Mount Prospect Foreign Fire Insurance Board. The Foreign Fire Insurance Board shall exercise the powers and duties provided herein consistent with 65 ILCS 5/11-10-1 through 11-10-3 and 11-10-2.5, as amended. The purpose of the Foreign Fire Insurance Board is to receive, administer, and expend foreign fire insurance license fee proceeds solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law. SECTION THREE: Section 5.1602, "Definitions" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1602: DEFINITIONS: Sworn Member shall mean a member of the Mount Prospect Fire Department who has taken an oath of office Department shall mean Mount Prospect Fire Department Fund shall mean the Foreign Fire Insurance Tax Fund Board shall mean the Mount Prospect Foreign Fire Insurance Board SECTION FOUR Section 5.1603, "Organization" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1603: ORGANIZATION A. Membership The Foreign Fire Insurance Board shall consist of seven (7) trustees, as follows: 1. The Fire Chief, who shall serve by virtue of rank; and 2. Six (6) sworn members of the Mount Prospect Fire Department, who shall be elected at large by the sworn members of the Department. If there is an insufficient number of candidates to fill all trustee positions, the number of trustees may be reduced, but shall not be fewer than three (3) trustees. All sworn members of the Department shall be eligible to be elected as trustees of the Foreign Fire Insurance Board. B. Officers The trustees shall annually elect officers from among themselves. Officers shall include Chairperson, Vice Chairperson, Treasurer, and Secretary The Foreign Fire Insurance Board may establish additional officer positions as it deems necessary. C. Village Liaison: The village finance director, or designee, shall serve as the village's liaison to the board. D. Term of Office Each trustee, except the Fire Chief, shall serve a two (2) year term, and until a successor assumes office. Initial terms of office shall begin thirty (30) days following completion of the election. A trustee shall be automatically removed from the Board upon resignation, retirement, or discharge from the Department, and the position shall be deemed vacant. E. Vacancies Vacancies on the Foreign Fire Insurance Board shall be filled by election of the sworn members of the Department for the balance of the unexpired term. Any person elected to fill a vacancy shall assume office immediately upon completion of the election. F. Election Procedures: 1. Temporary Election Procedure There is hereby established a temporary election committee consisting of five (5) sworn members of the Department. The Fire Chief shall serve as a member and as chairperson of the committee. The committee shall be responsible for organizing, conducting, and supervising the initial election of trustees. 2. Permanent Election Procedure The Foreign Fire Insurance Board shall adopt procedures governing the nomination and election of trustees consistent with this Article and State law. All rules and regulations with respect to the election process shall be posted throughout the Department a minimum of thirty (30) days prior to an election. SECTION FIVE: Section 5.1604, "Powers and Duties" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1604: POWERS AND DUTIES The Foreign Fire Insurance Board shall have all powers granted under State law and shall have the authority to: A. Make all needful rules and regulations with respect to the governance of the Mount Prospect Foreign Fire Insurance Board and the management of funds paid to the Board; B. Develop and maintain a listing of those items and services that the Board determines are appropriate expenditures under 65 ILCS 5/11-10-2; C. Receive, administer, and expend foreign fire insurance license fee proceeds, which shall be set apart as a separate fund for use by the Board; D. Approve expenditures solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law; E. Contract for the purchase of goods and services, including accounting, legal, collection, or other professional services necessary to carry out the Board's statutory duties; F. Ensure that all contracts and purchases made by the Board comply with the Village of Mount Prospect's generally applicable ordinances, rules, procedures, and procurement policies concerning the expenditure of municipal funds, including competitive bidding and conflict -of -interest requirements, provided that such compliance shall not be construed to require Village approval of expenditures or otherwise limit the Board's authority to contract as granted under State law; G. Provide that the funds administered by the Board shall be annually reviewed as part of the Village's audit to verify that expenditures were made lawfully and solely for the maintenance, use, and benefit of the Fire Department; and H. Provide that the Treasurer of the Board shall receive all funds paid pursuant to this Article and shall disburse such funds upon the order of the Board, in a manner consistent with applicable procurement requirements. Any expenditure made by the Treasurer pursuant to the order of the Board shall be solely for the maintenance, use, and benefit of the Fire Department. SECTION SIX: Section 5.1605, "Quorum; Special Meetings" of the Village Code is hereby renamed and repealed in its entirety and replaced with the following: 5.1605: MEETINGS; QUORUM; SPECIAL MEETINGS A. Meetings The Foreign Fire Insurance Board shall establish a regular time and place for its meetings and shall conduct its meetings in accordance with the Illinois Open Meetings Act (5 ILCS 120 /2.01). B. Quorum Except as otherwise provided herein, four (4) trustees shall constitute a quorum for the transaction of business. In the event the number of trustees serving on the Board is fewer than seven (7), the following quorum requirements shall apply: 1. For a Board composed of six (6) trustees, four (4) trustees shall constitute a quorum; 2. For a Board composed of five (5) trustees, three (3) trustees shall constitute a quorum; 3. For a Board composed of four (4) trustees, three (3) trustees shall constitute a quorum; and 4. For a Board composed of three (3) trustees, all three (3) trustees shall be present to constitute a quorum. C. Special Meetings The Chairperson may call a special meeting at any time, subject to the requirements of the Illinois Open Meetings Act. A special meeting may also be called upon written notice signed by three (3) trustees. Such notice shall describe, in brief, the nature or object of the special meeting. SECTION SEVEN: Section 5.1606, "Use of Funds" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1606: USE OF FUNDS Funds administered by the Foreign Fire Insurance Board may be used solely for the maintenance, use, and benefit of the Mount Prospect Fire Department, as authorized by State law. No funds shall be used for the personal benefit of any individual, or for any use or function not directly related to the Fire Department. Funds shall not be used for parties, alcoholic beverages, or any activity that violates Fire Department policies, Village policies, or applicable law. SECTION EIGHT: Section 5.1607, "Foreign Fire Insurance Tax Imposed" of the Village Code is hereby repealed in its entirety and replaced with the following: 5.1607: FOREIGN FIRE INSURANCE TAX IMPOSED Every corporation, company, or association not incorporated under the laws of the State of Illinois and engaged in effecting fire insurance upon property situated within the Village shall pay to the Foreign Fire Insurance Board, for the maintenance, use, and benefit of the Fire Department, a license fee equal to two percent (2%) of the gross receipts received from fire insurance upon property located within the Village. Each such corporation, company, or association shall pay the amount prescribed by this Section upon all premiums received during the year ending on the first day of July for all fire insurance effected or agreed to be effected on property situated within the Village. Every person acting within the Village as an agent, or otherwise, on behalf of any such corporation, company, or association shall, on or before July 15 of each year, render to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee a full and true account, verified by oath, of all premiums received during the preceding year ending July 1. The agent shall specify the amounts received for fire insurance and shall pay, at the time of rendering such report, the sum due under this Section. If such account is not rendered on or before July 15, or if the sum due remains unpaid after that date, it shall be unlawful for the corporation, company, or association in default to transact any fire insurance business within the Village until the amount due has been fully paid. This provision shall not relieve any such corporation, company, or association from payment of any loss upon any risk taken in violation of this requirement. The amount of the license fee may be recovered from the corporation, company, association, or any third party owing the fee, or from its agent, by an action brought by the Foreign Fire Insurance Board. The Foreign Fire Insurance Board or its authorized designee may examine the books, records, and other documents of any agent, corporation, company, or association for the purpose of verifying the correctness of any report required under this Section. This Section applies to receipts from contracts of marine fire insurance. A Foreign Fire Insurance Board aggrieved by a violation of this Section may file suit in the Circuit Court of the county in which the alleged violation occurred. The regulation of a foreign fire insurance board and its license fees are exclusive powers and functions of the State of Illinois. A home rule municipality may not regulate a foreign fire insurance board or its license fees. This Section constitutes a denial and limitation of home rule powers and functions pursuant to subsection (h) of Section 6 of Article VII of the Illinois Constitution. (Source: 65 ILCS 5/11-10-1(c), as amended by P.A. 102-740, effective January 1, 2023.) SECTION NINE. Section 5.1608, "Account" of the Village Code is hereby renamed and repealed in its entirety and replaced with the following: 5.1608: ACCOUNTING AND PAYMENT Every person acting as a representative for or on behalf of any corporation, company, or association subject to this Article shall, on or before July 15 of each year, render to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee a full, true, and just account, verified by oath, of all premiums received during the preceding year ending July 1 on fire insurance policies covering property located within the Village. At the time of rendering such report, the agent shall pay the amount due to the Treasurer of the Foreign Fire Insurance Board or the Board's authorized designee, in accordance with this Article and State law. SECTION TEN: Section 5.1609, "Failure to Account Or Pay Tax" of the Village Code is hereby repealed in its entirety, renamed and replaced with the following: 5.1609: DISPUTE RESOLUTION — BINDING ARBITRATION Any dispute between the Fire Chief and the remaining members of the Foreign Fire Insurance Board concerning whether a proposed or approved expenditure of funds is for the maintenance, use, or benefit of the Fire Department, or is otherwise authorized under 65 ILCS 5/11-10-2, shall be resolved through binding arbitration. The Foreign Fire Insurance Board shall adopt a written arbitration agreement governing such disputes. Any arbitration conducted pursuant to this Section shall be recognized under and conducted in accordance with the Illinois Uniform Arbitration Act. Binding arbitration shall be the exclusive remedy available for resolving disputes described in this Section. No appeal to the Village Board, Village Manager, or any other municipal body shall be permitted for such disputes.: SECTION ELEVEN: Section 5.1610, "Marine Insurance" of the Village Code is hereby repealed in its entirety, renamed "Failure to Account Or Pay Tax", and replaced with the following: 5.1610: FAILURE TO ACCOUNT OR PAY TAX If the required account is not rendered on or before July 15 of each year, or if the amount due remains unpaid after that date, it shall be unlawful for any corporation, company, or association in default to transact fire insurance business within the Village until the amount due has been fully paid. This provision shall not relieve any corporation, company, or association from payment of any loss upon any risk taken in violation of this Article. SECTION TWELVE: Section 5.1611 shall be created, "Marine Insurance" to read as follows: 5.1611: MARINE INSURANCE This subsection shall be applicable to receipts from contracts of marine fire insurance. SECTION THIRTEEN: That this Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form in the manner provided by law. AYES: Dante, DiPrima, Gens, Grossi, Matuszak, Saccotelli NAYS: None ABSENT: None PASSED and APPROVED this 3rd day of February, 2026 0 j"i'AP ". µ-'?�o - wmm_ Paul Wm. Hoefert, Mayor ATTEST: Karen M. Agoranos, Village Clerk