IL HB5278

Amends the Local Governmental and Governmental Employees Tort Immunity Act to allow local public entities to pay judgments, court orders, and administrative agency orders in installments if payment creates unreasonable financial hardship.

Requires the governing body to adopt an ordinance or resolution finding unreasonable hardship and the court to hold a hearing and find installment payments necessary to avoid unreasonable hardship before installments are allowed.

Court-ordered installment payments shall not exceed 10 annual installments of equal principal portions, except judgments of $500,000 or more may have unequal initial payments (up to 50% maximum) if plaintiff demonstrates extraordinary need for immediate medical necessities.

Allows local public entities to enter into settlement agreements with payment terms negotiated by parties and to seek judicial relief to restructure settlement agreements if payment creates unreasonable hardship.

Requires local public entities that derive revenue from rates and charges for services or facilities to set rates and charges sufficient to pay all tort judgments, settlements, and obligations under workers' compensation, occupational diseases, and unemployment insurance acts to the extent possible.