SB-1167 Summary

• A petition signed by at least 15% of registered village electors requesting disincorporation must be filed with the township clerk, which then verifies signatures and schedules a ballot question requiring a 2/3 voter approval to proceed.

• Upon voter approval, the county board of commissioners must pass a resolution vacating the village incorporation, and village officers must deposit all records with the county clerk while village debts are assessed and collected from the former village territory.

• Villages disincorporating into multiple townships or counties must have those jurisdictions apportion the village's indebtedness based on the last assessment roll before vacation.

• The village council may alternatively elect to establish a disincorporation commission composed of village and township representatives to develop a detailed disincorporation plan addressing land use, debt payment, property disposition, employee transfers, utilities, and fiscal impacts, requiring ratification by both the council and affected township boards.

• Under the commission process, voter approval requires a majority vote from village electors and a majority vote from each affected township's electors (excluding village residents), and a new disincorporation petition cannot be filed for at least 2 years if the proposal is rejected.