HB 5278

Abstract

Amends the Local Governmental and Governmental Employees Tort Immunity Act. Provides that if a local public entity does not pay a court order or administrative agency order requiring payment to a local entity during the fiscal year it becomes final, or cannot pay a judgment, court order, or administrative agency order due to the overall revenue of the local public entity and the overall volume of operating expenses and debts, and if the payment of the judgment, court order, settlement agreement, or administrative agency order creates an unreasonable financial hardship for the local public entity, it shall pay the balance of the judgment, court order, settlement agreement, or administrative agency order in installments. Provides that a local public entity shall have the power of judicial relief to restructure the settlement agreement if the payment of the settlement agreement creates an unreasonable hardship for the local public entity. Provides that a local public entity that derives revenue for its maintenance and operation from rates and charges made for services or facilities it provides shall make rates and charges in an amount sufficient to pay all its tort judgments and settlements under the Payment of Claims and Judgment Article of the Act and its obligations under the Workers' Compensation Act, the Workers' Occupational Diseases Act, and the Unemployment Insurance Act, to the extent possible.