Illinois New Laws 2026: A Complete Guide for Local Government Officials

Illinois municipalities face a comprehensive slate of new legislation taking effect in 2026 and 2027. This guide examines every law of municipal interest enacted during the 2025 Spring Legislative Session, organized by category to help city administrators, village officials, and local government staff understand their compliance obligations and new authorities. The following summaries are derived from the Illinois General Assembly’s official bill descriptions.

Economic Development / Tax Increment Financing / Enterprise Zones

DCEO Regional Manufacturing (P.A. 104-0342, SB 0058)

The Department of Commerce and Economic Opportunity may now enter into grants, contracts, or other agreements to provide technical assistance in support of regional manufacturing partnerships. These partnerships involve collaboration with employer associations representing manufacturers, secondary and postsecondary institutions including public universities and community colleges, and workforce stakeholders including local workforce innovation boards and local workforce innovation areas. Effective January 1, 2026. IML supported this legislation.

Energy

Building Stretch Codes (P.A. 104-0315, HB 3510)

This legislation amends the Energy Efficient Building Act regarding the Illinois Stretch Energy Code’s commercial components. The Capital Development Board must create and adopt a stretch energy code with a site energy index no greater than 0.50 of the 2006 International Energy Conservation Code by December 31, 2026 (previously December 31, 2025). Additional milestones require a site energy index no greater than 0.44 by December 31, 2029, and by December 31, 2031. Effective January 1, 2026.

Carbon Capture Compensation (P.A. 104-0390, SB 1697)

Amends the Safety and Aid for the Environment in Carbon Capture and Sequestration Act to provide that affected landowners are entitled to reasonable compensation from applicants granted a certificate of authority for damages resulting from access to property for pipeline construction activities. Effective January 1, 2026.

Environmental

PFAS in Firefighting PPE (P.A. 104-0221, HB 2409)

Beginning January 1, 2026, any entity selling firefighting personal protective equipment containing PFAS chemicals to any person, local government, or State agency must provide written notice at the time of sale stating that the equipment contains PFAS chemicals and the reason they are added. Both seller and purchaser must retain the notice for at least 3 years. Beginning January 1, 2027, the sale of firefighting personal protective equipment containing intentionally added PFAS chemicals is prohibited. Beginning January 1, 2030, the same prohibition extends to auxiliary firefighting personal protective equipment. Effective January 1, 2026.

EPA Local Siting Review (P.A. 104-0223, HB 2419)

When determining whether local siting review criteria have been met, county boards or municipal governing bodies must now consider vehicle emissions, potential cumulative impacts from adding facilities to existing pollution sources, disparate impacts on nearby communities, and potential disparate impacts. Local siting decisions must include a written statement describing whether procedures were conducted accessibly to the public, including individuals with disabilities and non-native English speakers. The Department of Transportation may charge fees for emissions studies related to traffic impact assessments. Effective January 1, 2026.

Consumer Electronics Recycling (P.A. 104-0274, HB 3098)

Updates the Consumer Electronics Recycling Act with changes to definitions and requirements. Adds nonprofit organizations or recyclers to provisions regarding retail or private network collection sites. The Consumer Electronics Recycling Act repeal date is extended to December 31, 2031 (from December 31, 2026). Manufacturers must include all brands and labels under which their covered electronic devices are marketed and sold to individuals in the State. Effective January 1, 2026.

Underground Storage Tank Fund (P.A. 104-0291, HB 3290)

Amends payment conditions from the Underground Storage Tank Fund. The EPA must make payment determinations within 120 days of receipt of both the complete application and the completion report, whichever is received later. For releases reported before June 8, 2010, owners or operators may access the Fund for costs incurred after the effective date with a $10,000 deductible. Effective January 1, 2026.

Water Main Installation (P.A. 104-0079, SB 0224)

For water main installation projects, all water mains and appurtenances including fire hydrants and valves under the ownership and control of a public water supply in public rights-of-way or utility access easements shall be included in the EPA’s written approval. Design review and permitting of water mains and fire hydrants is the sole responsibility of the EPA. Fire hydrants connected to plumbing systems must be installed in accordance with the Illinois Plumbing License Law. Effective January 1, 2026. IML was neutral on this legislation.

Sole-Source Aquifer Protection (P.A. 104-0119, SB 1723)

Prohibits carbon sequestration activity within a sequestration facility that overlies, underlies, or passes through a sole-source aquifer. Creates the Mahomet Aquifer Advisory Study Commission. Effective January 1, 2026. IML supported this legislation.

Firefighters

Higher Education Firefighter Credit (P.A. 104-0043, HB 1149)

Institutions of higher education with applicable programs offering courses for credit hours recommended by national higher education associations for firefighting training must adopt credit policies. Policies must be submitted by March 31, 2027, and annually thereafter for the subsequent fall semester. Effective January 1, 2026.

Lift-Assist Services Fees (P.A. 104-0057, HB 2336)

Municipalities or fire protection districts may fix, charge, and collect reasonable fees from assisted living facilities or nursing home facilities for every lift-assist service after the 6th lift assist provided to that facility in a calendar year. Effective January 1, 2026. IML supported this legislation.

First Responders Suicide Task Force (P.A. 104-0236, HB 2551)

Reinstates the First Responders Suicide Task Force with an additional member representing an organization providing mental health training and support for first responders. The Task Force must issue a final report to the General Assembly by December 31, 2026, and repeals January 1, 2027. Effective January 1, 2026.

Municipal EMS Vehicle Funds (P.A. 104-0258, HB 2977)

Municipalities with populations over 500,000 must set aside 10% of funds received from insurers for ambulance or fire services in a dedicated account. These funds may only be used for purchasing and maintaining ambulances, fire engines, and other emergency vehicles. This is in addition to existing funds and cannot replace them. Funds from public health programs or liability reimbursements are exempt. Effective January 1, 2026. IML opposed this legislation.

EMS Systems Dispute Resolution (P.A. 104-0321, HB 3645)

The Department of Public Health (rather than covered vehicle service providers) shall report overdose information from patient care reports to specified organizations. Overdose information shall not be used in opioid-related criminal investigations, prosecutions, welfare checks, or warrant checks of individuals treated for overdoses. Data submissions must not allow identification of individuals experiencing overdoses. Effective January 1, 2026.

MABAS Chief License Plates (P.A. 104-0081, SB 1158)

The Secretary of State may issue fire chief plates to chiefs of Mutual Aid Box Alarm Systems (MABAS). MABAS chiefs operating warning devices on non-municipal vehicles must display fire chief plates. Upon resignation or reassignment from MABAS, license plates must be surrendered immediately. MABAS chief vehicles may be equipped with emergency lights and sirens when responding to emergencies. Effective January 1, 2026.

Fire Marshal Death Tracking (P.A. 104-0102, SB 1446)

Beginning no later than 6 months after the effective date, the Office of the State Fire Marshal shall track and record the manner of death for all firefighters in Illinois, including suicide and various types of cancer. Effective January 1, 2026. IML was neutral on this legislation.

Rooftop Safety for First Responders (P.A. 104-0121, SB 1742)

Creates the Rooftop Safety for First Responders Act requiring installation of parapets, extended masonry, or guards for low-sloped roofs. Sets forth requirements for skylights and other roof openings. Municipalities must complete a survey of buildings in their jurisdiction and share results with local police and fire departments. Effective January 1, 2026. IML opposed this legislation.

Healthcare / Insurance

9-1-1 Telecommunicator CPR (P.A. 104-0027, HB 1697 & P.A. 104-0372, SB 1295)

Beginning January 1, 2026, all 9-1-1 telecommunicators who provide dispatch for emergency medical conditions must be trained in high-quality telecommunicator cardiopulmonary resuscitation (T-CPR) using nationally recognized emergency cardiovascular care guidelines. Emergency medical dispatchers must complete T-CPR training and provide prearrival instructions in compliance with EMS medical director protocols. Effective January 1, 2026. IML was neutral on this legislation.

Neonatal Intensive Care Cost Share (P.A. 104-0060, HB 2464)

If a beneficiary, insured, or enrollee receives neonatal intensive care from a nonparticipating provider or facility, health insurers must ensure the patient incurs no greater out-of-pocket costs than with a participating provider, as long as services are billed as emergency services. Effective January 1, 2026.

Insurance Provider Panels (P.A. 104-0333, HB 3796)

Network plans must permit beneficiaries to continue ongoing treatment with disaffiliating providers for 90 days from notice if the beneficiary has a confirmed appointment scheduled before notification. New beneficiaries also receive 90 days of continuity of care during transitions. Effective January 1, 2027.

Equine Therapy Coverage (P.A. 104-0068, SB 0069)

Group or individual accident and health insurance policies amended, delivered, issued, or renewed after January 1, 2027 shall provide coverage for medically necessary services incorporating equine movement as part of therapeutic intervention. Effective January 1, 2026.

Alzheimer’s Treatment Coverage (P.A. 104-0001, SB 0126)

Health insurance policies renewed on or after January 1, 2027 shall provide coverage for all medically necessary diagnostic testing and FDA-approved treatments or medications to slow progression of Alzheimer’s disease or related dementia, as determined by a physician. Some provisions effective June 9, 2025, and some effective July 1, 2027.

Klinefelter Syndrome Testing (P.A. 104-0073, SB 0175)

Health insurance policies renewed on or after January 1, 2027 shall provide coverage for karyotype tests or related hormone testing to diagnose Klinefelter syndrome. Amends the Illinois Municipal Code to require municipal coverage. Effective January 1, 2026.

Nonopioid Pain Management (P.A. 104-0369, SB 1238)

Beginning January 1, 2027, health insurance issuers must develop plans to provide adequate coverage and access to a broad spectrum of pain management services, including nonopioid, nonnarcotic, and non-medication alternatives to opioid prescribing. Plans must be filed with the Department of Insurance and posted publicly. Effective January 1, 2026.

Managed Care & Insurance Cards (P.A. 104-0375, SB 1346)

Health care plans must annually provide enrollees, upon request, a statement of all basic health care services and mandated benefits, highlighting newly enacted State laws. Health benefit information cards must indicate whether plans are self-insured or fully funded and whether regulated by the Department of Insurance. The Office of Consumer Health Insurance must post annual reports on health insurance legislation. Effective January 1, 2026.

Peripheral Artery Disease Screening (P.A. 104-0379, SB 1418)

Health insurance policies renewed after January 1, 2026 must provide coverage at least once every 12 months for peripheral artery disease screening for at-risk individuals. Policies renewed on or after January 1, 2027 shall provide medically necessary coverage as defined by American College of Cardiology and American Heart Association guidelines. Effective January 1, 2026.

Housing

Mobile Home Utilities (P.A. 104-0064, HB 2849)

Park owners are prohibited from requiring tenants to pay for utility services in common areas where a public utility company charges for those services. If common area utility usage is not separately measured, park owners may not charge tenants for more than 80% of the public utility bill. Park owners must provide annual written explanations of how tenant utility charges are calculated. Effective January 1, 2026.

Affordable Housing Data (P.A. 104-0319, HB 3616)

The Illinois Housing Development Authority must collect data on owner-occupied and rental units affordable to households at various income levels (30%, 60%-80%, 80%-140% of median income) and publish this data for each local government and statewide at least once every 5 years. This data is for informational purposes only and does not affect exempt local government determinations. Effective January 1, 2026.

Criminal Trespass Eviction Clarification (P.A. 104-0029, SB 1563)

Clarifies that nothing in the Eviction Article prohibits law enforcement from enforcing criminal trespass offenses or interferes with law enforcement’s ability to remove persons or property when criminal trespass occurs. Effective January 1, 2026. IML supported this legislation.

Labor / Workers’ Compensation

Victims Safety Electronics (P.A. 104-0171, HB 1278)

Employers shall not retaliate against or deprive employees of employer-issued equipment because the employee used it to record domestic violence, sexual violence, gender violence, or other crimes committed against the employee or family members. Employers must grant employees access to recordings stored on employer-issued devices relating to such violence. Effective January 1, 2026. IML was neutral on this legislation.

Neonatal Intensive Care Leave (P.A. 104-0259, HB 2978)

Employees of employers with 16-50 employees may use up to 10 days of unpaid neonatal intensive care leave while their child is in a NICU. Employees of employers with 51+ employees may use up to 20 days. Employees must be reinstated to their former or substantially equivalent position with no loss of benefits. Effective June 1, 2026.

Workplace Transparency Confidentiality (P.A. 104-0320, HB 3638)

Settlement or termination agreements with confidentiality provisions related to alleged unlawful employment practices are valid only if confidentiality promises expire within 5 years from when the employee disclosed the alleged practice. Replaces “consequential damages” with “compensatory damages” and defines “concerted activity.” Effective January 1, 2026.

Meetings / Public Records

MHDD-OIG Investigations (P.A. 104-0327, HB 3718)

Expands Department of Human Services investigation provisions to include allegations of material obstruction of investigations, physical abuse, sexual abuse, non-de minimis financial exploitation (≥$100), or egregious neglect regarding facility employees’ alleged abuse of mental health or developmental disability service recipients. Effective January 1, 2026.

Municipal Governance

Illinois Century Network Priorities (P.A. 104-0166, HB 1062)

Connection of anchor institutions to the Illinois Century Network shall be prioritized by type, starting with schools and libraries. Priorities are changed to be based on distance from the existing middle-mile network and other criteria, rather than solely institution type. Effective January 1, 2026.

Municipal Audit Requirements (P.A. 104-0167, HB 1082)

Beginning Fiscal Year 2027, municipalities with populations of 1,000 or more must file annual audit reports and financial reports with the Comptroller. Municipalities under 1,000 must file annual financial reports. Municipalities under 1,000 with public utilities or bonded debt must file audit reports every 4 years unless the latest audit contains adverse opinions. Reports must be submitted within 180 days of fiscal year close unless an extension is granted. Effective January 1, 2026. IML supported this legislation.

Metro Water Reclamation Bonds (P.A. 104-0044, HB 1158)

Increases the annual bond issuance limit for Metropolitan Water Reclamation District obligations from $150,000,000 to $250,000,000, plus amounts authorized but not issued during the preceding 3 budget years. Effective January 1, 2026.

Township Open Space Leasing (P.A. 104-0048, HB 1367)

Township boards may lease open space for up to 25 years to individuals, nonprofits, or governments for purposes consistent with open space, including agricultural purposes. Reduces minimum acreage for open space from 50 to 12 acres. Township boards may sell open space to IDOT without referendum under specified conditions. Effective January 1, 2026.

Organ Donor Leave for Part-Time Employees (P.A. 104-0193, HB 1616)

Part-time employees may use up to 10 days of leave in any 12-month period to serve as organ donors. Employers must calculate daily average pay from the previous 2 months of employment and compensate part-time employees accordingly. Effective January 1, 2026. IML was neutral on this legislation.

Administrative Adjudication Enhancement (P.A. 104-0200, HB 1842)

Municipal administrative adjudication ordinances shall allow hearing officers to enter orders prohibiting further code violations, compelling remediation within specified timeframes, and authorizing municipalities to take all necessary steps to remediate code violations. Effective January 1, 2026. IML supported this legislation.

Library Opioid Antagonists (P.A. 104-0056, HB 1910)

Libraries must, during operating hours, take reasonable steps to have at least one person present trained to recognize and respond to opioid overdoses, including administering opioid antagonists. Training may be conducted by recognized organizations or created by libraries using free resources from IDPH or IDHS websites. Libraries and authorized personnel are immune from liability except for willful and wanton misconduct. Libraries may receive opioid antagonists from any lawful source. Effective January 1, 2026.

Swimming Facility Permits (P.A. 104-0269, HB 3050)

Permits for construction or major alteration of swimming facilities are now valid for 2 years (previously 1 year). Authorizes operation of cold spas in compliance with the Act. IDPH must adopt rules for cold spa operation. Effective January 1, 2026. IML was neutral on this legislation.

Local Government Billing Act (P.A. 104-0328, HB 3725)

Creates the Local Government Billing Act requiring units of local government to bill for utility services within 12 months (residential) or 24 months (non-residential) after service provision. Previously unbilled amounts must be labeled, prorated for varying rates, and customers must be offered payment arrangements. No time limit applies for unbilled service attributed to tampering, theft, or fraud. Effective January 1, 2026. IML was neutral on this legislation.

Swimming Pool Equipment (P.A. 104-0349, SB 0189)

IDPH rules must permit sporting goods and fitness equipment systems designed for pool use to be installed in swimming facilities according to manufacturer specifications. Such equipment shall not be considered obstructions. IDPH must include rules for aquatic features including overhead systems. Effective January 1, 2026.

Food Handler Celiac Disease Training (P.A. 104-0090, SB 1288)

All food handlers must complete training on celiac disease and safe handling of gluten-free foods, covering the nature and symptoms of celiac disease, importance of gluten-free handling, cross-contamination prevention, cleaning and sanitizing procedures, and gluten-free product labeling. Adds sesame to the definition of “major food allergen.” Effective January 1, 2026. IML was neutral on this legislation.

Utility Pole Use for Public Safety (P.A. 104-0097, SB 1380)

Counties or municipalities may use utility poles owned by the State or local governments, or public rights-of-way, for public safety purposes including equipment placement. Fees charged by pole owners must be at the lowest rate and cannot exceed costs. Equipment may not interfere with electric distribution systems. State agencies or local governments may create permitting processes for such use. Effective January 1, 2026. IML supported this legislation.

Human Trafficking Enforcement (P.A. 104-0099, SB 1422)

Units of local government regulating employers or law enforcement agencies with jurisdiction may monitor and enforce compliance with the Human Trafficking Recognition Training Act. Upon discovering violations, employers must be given 30 days’ notice to cure. Employers violating the Act are guilty of a business offense with fines up to $1,500 per offense. Effective January 1, 2026.

Property Fraud Alert Systems (P.A. 104-0382, SB 1523)

Persons filing fraudulent, unlawfully altered, or title-clouding deeds may be held liable to rightful property owners. Every county must establish and maintain a property fraud alert system. Every recorder must establish a fraud referral and review process for deeds and instruments. Effective January 1, 2026. IML supported this legislation.

Library Security Grants (P.A. 104-0108, SB 1550)

State grants for library systems shall include planning and construction grants and grants to improve or enhance library security. Effective January 1, 2026. IML supported this legislation.

Design-Build Projects (P.A. 104-0401, SB 1941)

Removes requirement for municipalities to develop preliminary design plans for design-build projects. Design-build entities cannot be disqualified solely for previously being awarded projects. If only one Phase I response is received, municipalities may proceed with Phase II evaluation if in their best interest. Fire protection districts may enter design-build contracts. Effective January 1, 2026. IML supported this legislation.

Web-Based Signatures (P.A. 104-0406, SB 2044)

Municipalities may allow persons to sign documents with web-based signatures if the municipality uses a secure web-based platform. This does not apply to nominating, candidate, or referendum petitions. Effective January 1, 2026. IML supported this legislation.

Pension Benefits

Firefighter Pension Payment Redirects (P.A. 104-0196, HB 1648)

Downstate firefighter pensioners, annuitants, applicants, and beneficiaries cannot transfer or assign pensions by mortgage or otherwise. However, annuitants or disability beneficiaries may direct monthly payments to associations affiliated with their fire service or for hospitalization insurance. Effective January 1, 2026. IML was neutral on this legislation.

Pension Code Various Updates (P.A. 104-0284, HB 3193)

Makes numerous changes to the Illinois Pension Code including provisions concerning pension cancellation due to re-employment, persons holding elective office under IMRF, service credit transfers, employer contributions, military service credit, MWRD ordinary disease benefits, Chicago Teachers service computation, trustee indemnification, Chicago Firefighters occupational disease benefits, Firefighters’ Pension Investment Fund elections, State Universities final earnings calculations, Downstate Teachers optional defined contribution benefits, and State Employees alternative retirement annuities. The Joliet Regional Port District may participate in IMRF. Some provisions effective August 15, 2025, and some effective January 1, 2026.

Police Officers

Seizure & Forfeiture Reporting (P.A. 104-0194, HB 1628)

Law enforcement agencies that seize property must report certain information. If agencies made no seizures, they must file reports stating so. Prosecuting authorities issuing notices of pending forfeiture must report information to Illinois State Police within 60 days after December 31 of the year notices are issued. The public searchable database shall not provide personally identifying information. Effective January 1, 2026.

Traffic Signal Preemption Devices (P.A. 104-0226, HB 2442)

Vehicles used by local or county emergency management services agencies may install and operate traffic control signal preemption devices when responding to bona fide emergencies and used with red oscillating, rotating, or flashing lights. Effective January 1, 2026. IML was neutral on this legislation.

Care for Retired Police Dogs (P.A. 104-0276, HB 3140)

Creates the Care for Retired Police Dogs Program within the University of Illinois System to fund veterinary care for retired police dogs. The Board of Trustees shall contract with a nonprofit to administer the program. Annual disbursements to former handlers or adopters cannot exceed $1,500 per dog. Illinois Police K-9 Memorial Fund moneys shall be used for this program. Effective January 1, 2026. IML supported this legislation.

Crime Victims Rights (P.A. 104-0326, HB 3710)

Crime victims have the right to be treated with fairness and respect during investigations, including being free from deception, which is defined as the knowing communication of false facts about evidence. Effective January 1, 2026.

Amber Alerts for Disabled Persons (P.A. 104-0384, SB 1548)

The Illinois State Police community outreach program to promote Endangered Missing Person Advisory awareness may include outreach to people with developmental disabilities and organizations serving them. Effective January 1, 2026. IML supported this legislation.

Police Supervisor Definition (P.A. 104-0118, SB 1701)

For police officers, a supervisor is defined as any officer in a permanent rank for which the officer is appointed. For State Police, supervisor includes Lieutenant Colonel or above. For municipal police officers other than State Police, “permanent rank” means those not subject to promotional testing under the Illinois Municipal Code. Effective July 1, 2026. IML opposed this legislation.

Emergency Vehicle Right-of-Way (P.A. 104-0400, SB 1922)

Drivers must yield right-of-way to authorized emergency vehicles engaged in work on highways, whether stationary or not, displaying flashing lights. Drivers must also yield to emergency workers and pedestrians directly involved in emergency scenes. The Secretary of State may suspend or revoke driving privileges for violations resulting in property damage, death, or injury. Effective June 1, 2026.

Public Health and Safety

Wastewater Industrial Use (P.A. 104-0219, HB 2391)

Use of treated municipal wastewater from publicly owned treatment works is now authorized for both irrigation and industrial use (previously only irrigation) when conducted under EPA permits. Effective January 1, 2026. IML supported this legislation.

Epinephrine Liability – Dillon’s Law (P.A. 104-0229, HB 2462)

Authorized individuals acting in good faith to provide or administer epinephrine delivery systems in emergencies shall not be liable for civil damages except for willful and wanton misconduct. This limitation applies only to the act of providing or administering epinephrine and does not extend to other care or treatment. Effective January 1, 2026. IML was neutral on this legislation.

Warehouse Tornado Preparedness (P.A. 104-0262, HB 2987)

Warehouse operators must prepare tornado safety plans within 120 days of the effective date for existing warehouses, or within 7 days of becoming operational for new warehouses. Plans must be reviewed annually and filed with fire departments/protection districts and local emergency services agencies. New warehouse construction must meet life-safety performance levels for tornado loading. County and municipal building inspectors must hold International Code Council certifications, with a one-year grace period for new hires. Some provisions effective August 15, 2025, and some effective January 1, 2027. IML was neutral on this legislation.

School Hazardous Substance Safety (P.A. 104-0344, SB 0071)

Includes hazardous substance incidents from rail transport in school evacuation and shelter-in-place drills. Schools must develop hazardous substance release guidance coordinated with local emergency management and planning agencies. By July 1, 2026, IEMA must develop and provide guidance to all local emergency planning committees and school districts regarding potential impacts from hazardous substance releases. Effective January 1, 2026. IML supported this legislation.

Nonresident Emergency Vehicles (P.A. 104-0087, SB 1249)

Nonresidents employed as public safety workers may operate authorized emergency vehicles in Illinois if they possess the license class required by their state of residence for similar equipment. Effective January 1, 2026. IML supported this legislation.

Public Works / Transportation

Boards and Commissions Review (P.A. 104-0435, HB 1863)

Beginning in 2027 during odd-numbered years, appointing authorities may review boards, commissions, and task forces to determine activity levels and recommend abolition of inactive entities. The Legislative Reference Bureau shall draft revisory bills proposing repeal of boards found inactive. Amends various Acts to abolish governmental entities per Executive Order 2018-11. Some provisions effective immediately, some effective July 1, 2026.

EMS Chief License Plates (P.A. 104-0213, HB 2359)

The Secretary of State may begin issuing EMS chief license plates in the 2027 registration year. Upon resignation or reassignment from EMS chief positions, plates must be immediately surrendered. Exempt from the 2,000 application requirement. Permanent EMS chief plates may be issued for a one-time $8 fee. Effective January 1, 2026. IML was neutral on this legislation.

Farm CDL Extended Season (P.A. 104-0366, SB 0849)

Restricted commercial driver’s licenses for farm-related service industries are valid for a seasonal period not to exceed 210 days (previously 180 days) in any 12-month period. Effective January 1, 2026.

Lake Shore Drive AI Camera Study (P.A. 104-0381, SB 1507)

The University of Illinois Chicago Urban Transportation Center shall conduct a study of DuSable Lake Shore Drive crash data, including research on AI-powered cameras for improving compliance and reducing crashes, analysis of risky driving patterns, assessment of psychological deterrence effects, and evaluation of technical options for reducing fatalities. IDOT shall adopt implementing rules. Effective January 1, 2026.

IDOT Pedestrian Fatality Studies (P.A. 104-0110, SB 1559)

IDOT must conduct traffic studies following any crash involving a pedestrian fatality at State or municipal highway intersections. IDOT must conduct timely analysis of each fatal traffic crash on State or municipal highways, identify trends and patterns, and identify potential safety actions with cost estimates and funding options. Results must be publicly available upon request. Effective January 1, 2026.

Vehicle Towing Safety (P.A. 104-0133, SB 2040)

Personal property in towed vehicles is subject to liens, with exceptions for certain items claimable by immediate family members. Commercial vehicle safety relocators must designate registered agents within Illinois. Adds provisions concerning vehicle impoundment, fines for Commission violations, and suspension of tow truck registrations. Effective January 1, 2026.

IDOT Online Portal for Local Governments (P.A. 104-0409, SB 2129)

IDOT shall establish an online portal allowing units of local government to submit forms electronically. The portal shall provide tracking features and Department contact information. Effective January 1, 2026. IML supported this legislation.

Bicycle Definition Update (P.A. 104-0141, SB 2285)

Redefines “bicycle” as every human-powered device and every low-speed electric bicycle with 2 or more wheels not less than 12 inches in diameter, operable pedals, and designated seats for one or more persons. Effective January 1, 2026.

Revenue & Taxation

Revenue Various – Including Grocery Tax (P.A. 104-0006, HB 2755)

Makes changes to various revenue provisions including tax amnesty, business interest deductions, Road Fund deposits, Environmental Protection Act civil penalties, short-term rentals, tobacco products, grocery taxes, the 9-8-8 suicide prevention system, marketplace facilitators, motor fuel taxes, affordable housing property tax credits, and tobacco/cigarette taxes. Creates the American Hostage Tax Liability Postponement Act, the Advancing Innovative Manufacturing for Illinois Tax Credit Act, and the Digital Advertisement Tax Act. Effective dates vary: some immediately, some July 1, 2025, some January 1, 2026, and some January 1, 2027.

Open Space Grants to Governments (P.A. 104-0423, SB 2466)

Distressed location projects in distressed communities are eligible for up to 100% assistance for open space land acquisition and capital development. Projects in distressed communities (regardless of distressed location status) are eligible for up to 90%. Distressed location projects not in distressed communities are eligible for up to 75%. DNR shall prioritize grants for projects in distressed locations and communities. Effective January 1, 2026. IML supported this legislation.

State Governance

FY2026 Budget Implementation (P.A. 104-0002, HB 1075)

Creates the Fiscal Year 2026 Budget Implementation Act with various statutory changes needed to implement the State budget. Effective dates vary: some June 16, 2025, some July 1, 2025, some January 1, 2026, and some March 1, 2026.

Day Care Center Definition – Arboretums (P.A. 104-0045, HB 1168)

The definition of “day care center” does not include special activities programs conducted by civic, charitable, or governmental organizations on a periodic basis. Adds arboretum programs to exemptions if the arboretum conducts background investigations on program employees. Effective January 1, 2026.

Joliet Arsenal Development Authority (P.A. 104-0177, HB 1364)

The Joliet Arsenal Development Authority Board of Directors expands from 10 to 15 members. The Will County Executive appoints 1 member (previously 6) and the Chairperson. Mayors of Channahon, Crest Hill, Elwood, Joliet, Lockport, Manhattan, Rockdale, Romeoville, Symerton, and Wilmington each appoint one member. The Board meets upon call of Chairperson or written notice of 8 members (previously 6). Official acts require simple majority votes of present members (previously at least 6 members). Effective January 1, 2026. IML supported this legislation.

O’Hare Driver Safety (P.A. 104-0184, HB 1502)

Illinois State Police (rather than the Illinois Toll Highway Authority) shall issue violations for stopping or standing within one-half mile of O’Hare International Airport and shall procure and oversee automated traffic safety systems. The Authority and IDOT shall allow installation of systems on light poles under their jurisdiction. State Police shall issue notices of violations and adopt implementing rules. Effective January 1, 2026. IML supported this legislation.

DoIT Powers and Duties (P.A. 104-0195, HB 1631)

Makes changes to the Department of Innovation and Technology including scope of services and classes of persons served. DoIT may charge fees to all State agencies under the Governor’s jurisdiction. Principal executive officers of specified local governments must designate primary contacts for local cybersecurity issues and provide information to the Statewide Chief Information Security Officer. Governmental agencies using electronic records and signatures may specify required formats. Effective January 1, 2026. IML was neutral on this legislation.

EPA Provisional Operator Certificates (P.A. 104-0050, HB 1699)

EPA shall establish provisional wastewater operator certification and operator-in-training programs for persons without high school diplomas. EPA shall also establish operator-in-training community water-supply operator programs. Effective January 1, 2026. IML supported this legislation.

Statewide Domestic Violence Hotline (P.A. 104-0247, HB 2774)

DHS shall provide a single, easy-to-use telephone number for public access to domestic violence information and referrals. DHS may contract with a lead entity meeting specific qualifications including: ability to provide statewide, toll-free, 24/7, multi-lingual, confidential referral services; at least 2 years of effective victim-centered service; Illinois 501(c)(3) nonprofit status; and up-to-date technology for deaf and hard of hearing access. Effective January 1, 2026. IML supported this legislation.

Bond Authorization Act of 2025 (P.A. 104-0008, HB 3374)

Amends the State Finance Act, General Obligation Bond Act, and Build Illinois Bond Act to make changes concerning bond authorization amounts. Effective January 1, 2026.

Hospital Homelessness Support (P.A. 104-0332, HB 3761)

The Office to Prevent and End Homelessness within DHS must maintain website information on how hospitals and health care providers may connect homeless patients with shelter and support services for each continuum of care. Information must include phone numbers, email addresses, physical addresses, and primary agencies for each territory. Voluntary training shall be available for hospitals on using the continuum of care website. Effective January 1, 2026. IML supported this legislation.

Government Advertising Transparency (P.A. 104-0077, SB 0213)

By October 1, 2026, and annually thereafter, each State agency or department shall report advertising spending amounts and distribution to the General Assembly and post reports on their websites. If vendors place advertisements on behalf of agencies, agencies must make good faith efforts to collect sufficient compliance information. Effective January 1, 2026.

DCFS Community Services (P.A. 104-0351, SB 0324)

Changes Family Support Program services to publicly funded community and residential services. If minors are determined eligible for such services, courts shall conduct hearings within 14 days upon notification. For minors in DCFS temporary custody, courts shall determine whether urgent necessity exists to continue custody. DCFS remains fiscally responsible for providing services to minors continuing in custody. Effective January 1, 2026.

Interstate Mutual Emergency Aid (P.A. 104-0364, SB 0784)

Any public safety agency may provide assistance to any other public safety agency in Illinois or bordering states at the time of a disaster. Effective January 1, 2026. IML supported this legislation.

Homeless Status Notarization (P.A. 104-0083, SB 1173)

Notaries public shall not charge fees for notarial acts related to execution of Illinois Secretary of State Department of Driver Services Homeless Status Certification forms. Effective January 1, 2026.

Capital Development Board Reporting (P.A. 104-0085, SB 1230)

By July 1, 2026, and annually thereafter, the Capital Development Board shall submit reports to the General Assembly and Governor concerning all planned and ongoing projects constructed by or under Board supervision. Effective January 1, 2026. IML supported this legislation.

Community Reinvestment Consideration (P.A. 104-0092, SB 1301)

The State Treasurer or any public agency may consider current and historical ratings under the Illinois Community Reinvestment Act when deciding whether to deposit State or public funds in financial institutions. Funds already deposited may not be withdrawn prior to maturity solely based on less than satisfactory ratings. Effective January 1, 2026.

Utilities

School Safety Drills for Substitutes (P.A. 104-0198, HB 1787)

Training shall be provided in person when available. School districts shall provide support for substitute personnel by ensuring recommendations are implemented, including prominent display of maps indicating all school exits in every classroom and information packets for full-time employees including evacuation and lockdown procedures. Effective January 1, 2026. IML was neutral on this legislation.

Water Main Installation Permitting (P.A. 104-0277, HB 3141)

For water main installation projects, all water mains and appurtenances including fire hydrants and valves under public water supply ownership in public rights-of-way or utility access easements shall be included in EPA written approval. Design review and permitting of water mains and fire hydrants is the sole responsibility of the EPA. Fire hydrants connected to plumbing systems must be installed in accordance with the Illinois Plumbing License Law. Effective January 1, 2026. IML was neutral on this legislation.

Conclusion

The 2026 legislative session brings substantial changes affecting Illinois municipalities across virtually every area of local government operations. From environmental regulations and firefighter support to housing policies, labor laws, and public safety enhancements, municipal officials must carefully review these new requirements to ensure compliance and take advantage of new authorities granted to local governments.

Key areas requiring immediate municipal attention include library opioid antagonist requirements, property fraud alert system establishment, building inspector certification requirements, neonatal intensive care leave provisions, and the expanded Local Government Billing Act requirements. Officials should also note the several laws with 2027 effective dates that require advance planning.

SnapSite provides comprehensive website and digital solutions for municipalities navigating these complex regulatory changes. Contact us to learn how we can help your community communicate effectively with residents about new laws and requirements.