Public Act 96-0505 Foreign Fire Insurance Boards
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.