IllinoisHB5166104th General Assembly (2025–2026)HouseWALLET

DISSOLVE SPECIAL DISTRICTS ACT

Sponsored By: Sponsor information unavailable

Became Law

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.

counties & townshipsassignmentsexecutive

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Law takes effect immediately

The Act takes effect when it becomes law. The new dissolution and transfer rules apply now.

New process to dissolve drainage districts

The law sets a way to dissolve a drainage district in Illinois counties with 650,000 to 1,000,000 people. A majority of the district board must vote to end the district on a set date, and a majority of a receiving local government’s board must vote to accept it by that date. By the dissolution date, all property, funds, staff, contracts, and debts move to the receiving unit. On that date, the district ends, and the receiving unit takes over all rights and duties. Before dissolution, the receiving unit must file a plan showing it has the resources to keep services going. Within 30 days of the key dates, the dissolving district and the receiving unit must send certified copies of their votes to the Illinois Department of Revenue and the affected counties.

New process to dissolve sanitary districts

The law sets a way to dissolve a sanitary district in Illinois counties with 650,000 to 1,000,000 people. A majority of the district board must vote to end the district on a set date, and a majority of a receiving local government’s board must vote to accept it by that date. By the dissolution date, all property, funds, staff, contracts, and debts move to the receiving unit. On that date, the district ends, and the receiving unit takes over all rights and duties. Before dissolution, the receiving unit must file a plan showing it has the resources to keep services going. Within 30 days of the key dates, the dissolving district and the receiving unit must send certified copies of their votes to the Illinois Department of Revenue and the affected counties.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Chris Balkema

    Affiliation unavailable

  • Laura Faver Dias

    Affiliation unavailable

  • Lawrence "Larry" Walsh, Jr.

    Affiliation unavailable

  • Meg Loughran Cappel

    Affiliation unavailable

  • Suzanne M. Ness

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 184 • No: 9

Senate vote 5/21/2026

Third Reading - Passed;

Yes: 52 • No: 3

Senate vote 5/6/2026

Do Pass Executive;

Yes: 9 • No: 2

House vote 4/16/2026

House Floor Amendment No. 3 Recommends Be Adopted Counties & Townships Committee;

Yes: 11 • No: 0

House vote 4/16/2026

Third Reading - Short Debate - Passed

Yes: 105 • No: 0

House vote 3/26/2026

Do Pass as Amended / Short Debate Counties & Townships Committee;

Yes: 7 • No: 4

Actions Timeline

  1. Public Act . . . . . . . . . 104-0513

    6/26/2026House
  2. Effective Date June 26, 2026

    6/26/2026House
  3. Governor Approved

    6/26/2026House
  4. Sent to the Governor

    6/18/2026House
  5. Added as Alternate Chief Co-Sponsor Sen. Chris Balkema

    5/21/2026Senate
  6. Passed Both Houses

    5/21/2026House
  7. Third Reading - Passed; 052-003-000

    5/21/2026Senate
  8. Placed on Calendar Order of 3rd Reading May 18, 2026

    5/14/2026Senate
  9. Second Reading

    5/14/2026Senate
  10. Placed on Calendar Order of 2nd Reading May 7, 2026

    5/6/2026Senate
  11. Do Pass Executive; 009-002-000

    5/6/2026Senate
  12. Assigned to Executive

    4/28/2026Senate
  13. Referred to Assignments

    4/21/2026Senate
  14. First Reading

    4/21/2026Senate
  15. Chief Senate Sponsor Sen. Meg Loughran Cappel

    4/21/2026Senate
  16. Placed on Calendar Order of First Reading

    4/21/2026Senate
  17. Arrive in Senate

    4/21/2026Senate
  18. Added Chief Co-Sponsor Rep. Laura Faver Dias

    4/16/2026House
  19. House Floor Amendment No. 2 Tabled

    4/16/2026House
  20. Third Reading - Short Debate - Passed 105-000-000

    4/16/2026House
  21. Placed on Calendar Order of 3rd Reading - Short Debate

    4/16/2026House
  22. House Floor Amendment No. 3 Adopted

    4/16/2026House
  23. House Floor Amendment No. 3 Recommends Be Adopted Counties & Townships Committee; 011-000-000

    4/16/2026House
  24. House Floor Amendment No. 3 Rules Refers to Counties & Townships Committee

    4/15/2026House
  25. House Floor Amendment No. 3 Referred to Rules Committee

    4/15/2026House

Bill Text

  • Engrossed

  • Enrolled

  • House Amendment 1

  • House Amendment 2

  • House Amendment 3

  • Introduced

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