In an effort to provide guidance on Public Act 96-0505, we have developed a synopsis of the Act which you may find helpful when implementing the changes within your fire departments.

·         HB 587 was signed on August 14, 2009 by Governor Quinn and became effective immediately as Public Act 96-0505.

·         The bill amended the Illinois Municipal Code by changing Section 11-10-2 and it also amended the Fire Protection District Act by adding Section 11i.

·         It has always been the intent of AFFI Convention Resolutions and introduced legislation in the General Assembly that both municipal and fire protection district fire departments have identical Foreign Fire Insurance language within their respective statutes.

  Municipal Fire Departments  

All Municipal fire departments should have already had a Foreign Fire Insurance Board seated as directed by ordinance. According to the new Act and legislative intent, the following changes have been made;

1.       A Foreign Fire Insurance Board shall be created within the fire department of each municipality with fewer than 500,000 inhabitants. Previous language stated 250,000.

2.       Prior to the new Act, language did not exist in relation to board make-up. New language requires that the board consist of seven members. One of them is the Fire Chief and the other six are sworn members that are elected by sworn members.

3.       If there is an insufficient number to fill these positions, the number may be reduced, but not to fewer than three.

4.       The members of the Foreign Fire Insurance Board shall annually elect a chairman and treasurer of the board.

5.       As part of the municipal audit, foreign fire insurance funds shall be audited to verify that the funds have been expended by that board only.

 

The Board still maintains the authority to make all needful rules and regulations with respect to the board and the management of the money to be appropriated to the board.

 

 

New language has been added to the Fire Protection District Act that will allow sworn members of the fire department to seat a Foreign Fire Insurance Board. Prior to the new Act, sworn personnel were not allowed to participate in any capacity as it related to foreign fire insurance funds. Below are additions to the statute, legislative intent, and guidance.

 

1.       The board shall consist of seven members. One must be the Fire Chief and the other six are to be sworn members elected by sworn members. To facilitate the creation of the board it may be helpful that the Local Executive Board and/or Fire Chief initiate an election process.

2.       A Foreign Fire Insurance Board shall exist within the fire department that employs any full-time firefighters and is subject to a collective bargaining agreement.

3.       If there are an insufficient number of candidates to fill the seven positions, the number of board members may be reduced to three at a minimum.

4.       Once the board is created those individuals seated must elect a Chairman and Treasurer from within the board on an annual basis.

5.       The members of the board shall make rules with respect to the board and the management of the money to be appropriated to the board. For guidance we suggest calling neighboring municipal fire departments that have had boards in place for some time. They may be able to share some of their rules/regulations determining election cycles, budgeting of money, frequency of meetings, how requests for expenditures are submitted and processed, etc..

6.       All of the money paid to the secretary of the fire protection district shall be set apart and shall be appropriated annually by the board of trustees of the fire protection district to the department Foreign Fire Insurance Board.

7.       As part of the annual fire protection district audit, these funds shall be audited to verify that the funds have been expended by the foreign fire insurance board ONLY for the maintenance, use, and benefit of the department.