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IL HB5166

IL HB5166
DISSOLVE SPECIAL DISTRICTS ACT


summary

Introduced
02/05/2026
In Committee
02/10/2026
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Creates the Dissolution of Special Districts Act. Establishes a method for the dissolution of special districts. Provides that a special district may dissolve upon the affirmative majority vote of its own governing body and the affirmative majority vote of a receiving unit of local government. Provides that, on or before the date of dissolution, all real and personal property, and any other assets, together with all personnel, contractual obligations, and liabilities of the dissolving special district shall be transferred to the receiving unit of local government. Provides that, on the date of dissolution, the dissolving special district is dissolved. Provides that, on and after the date of dissolution, all rights and duties of the dissolving special district may be exercised by the receiving unit of local government. Provides that, before the date of dissolution, the receiving unit of local government shall submit a service continuation plan confirming that the receiving unit of local government has the resources to continue providing the services provided by the dissolving special district. Effective immediately.

AI Summary

This bill, titled the Dissolution of Special Districts Act, establishes a new process for special districts, which are local government entities created for a specific purpose, to be dissolved. Under this act, a special district can be dissolved if both its own governing body (which includes entities like boards or county boards) and the governing body of another local government unit that will take over its responsibilities, known as the "receiving unit of local government," vote in favor of the dissolution. Before the dissolution occurs, the receiving unit of local government must submit a service continuation plan to prove it has the necessary resources to continue providing the services the dissolving special district offered. On the date of dissolution, all of the dissolving special district's property, personnel, contracts, and debts will be transferred to the receiving unit of local government, which will then assume all of its rights and duties. This method of dissolution is in addition to any other existing legal ways to dissolve such districts.

Sponsors (1)

Last Action

Referred to Rules Committee (on 02/10/2026)

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