Illinois legislation · 104th General Assembly
Illinois HB5166: DISSOLVE SPECIAL DISTRICTS ACT
Status: Signed into law, June 26, 2026
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.
What the bill says
A bill FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB5166Introduced 2/10/2026, by Rep. Lawrence "Larry" Walsh, Jr.SYNOPSIS AS INTRODUCED: New Act New Act New Act Creates the Dissolution of Special Districts Act. Establishes amethod for the dissolution of special districts. Provides that a specialdistrict may dissolve upon the affirmative majority vote of its owngoverning body and the affirmative majority vote of a receiving unit oflocal government…
From the introduced text, February 5, 2026:
A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB5166Introduced 2/10/2026, by Rep. Lawrence "Larry" Walsh, Jr.SYNOPSIS AS INTRODUCED: New Act New Act New Act Creates the Dissolution of Special Districts Act. Establishes amethod for the dissolution of special districts. Provides that a specialdistrict may dissolve upon the affirmative majority vote of its owngoverning body and the affirmative majority vote of a receiving unit oflocal government. Provides that, on or before the date of dissolution, allreal and personal property, and any other assets, together with allpersonnel, contractual obligations, and liabilities of the dissolvingspecial district shall be transferred to the receiving unit of localgovernment. Provides that, on the date of dissolution, the dissolvingspecial district is dissolved. Provides that, on and after the date ofdissolution, all rights and duties of the dissolving special district maybe exercised by the receiving unit of local government. Provides that,before the date of dissolution, the receiving unit of local governmentshall submit a service continuation plan confirming that the receivingunit of local government has the resources to continue providing theservices provided by the dissolving special district. Effectiveimmediately. LRB104 19304 RTM 32750 b LRB104 19304 RTM 32750 b LRB104 19304 RTM 32750 b A BILL FOR HB5166LRB104 19304 RTM 32750 b HB5166 LRB104 19304 RTM 32750 b HB5166 LRB104 19304 RTM 32750 b AN ACT concerning local …