Illinois House Bill HB5278

Illinois 2023-2024 Regular Session

• Introduced: 2/8/24
• Refer: 2/9/24
• Refer: 2/28/24
• Refer: 4/5/24

Caption

GOV EMPLOYEE TORT IMMUNITY

Impact

If enacted, this legislation would enable local public entities to manage their financial obligations more effectively by providing an avenue for paying judgments in installments rather than in a lump sum. This could aid local governments that are struggling with tight budgets and high operating expenses, allowing them to fulfill legal obligations without facing immediate fiscal crisis. Additionally, it empowers governing bodies to seek judicial relief for restructuring settlement agreements in case of financial hardship.

Summary

House Bill 5278, introduced by Rep. William ''Will'' Davis, aims to amend the Local Governmental and Governmental Employees Tort Immunity Act. The bill specifically addresses the obligations of local public entities regarding the payment of tort judgments, court orders, and administrative agency orders. It establishes provisions that allow local entities to pay outstanding judgments and orders in installments if paying them in full at once would create unreasonable financial hardship.

Contention

While some may argue that the bill provides necessary support to local governments, critics could raise concerns about the implications of allowing installment payments. Opponents might contend that this could encourage financial irresponsibility among local entities, as the ability to pay in installments may reduce the incentive to maintain sufficient reserve funds to handle potential liabilities. Further, there might be concerns about the interests of plaintiffs who are owed payments, as prolonged payment periods could impact their financial situations.