SB3617 104TH GENERAL ASSEMBLY

LRB104 13782 RTM 26549 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3617

Introduced 2/5/2026, by Sen. Li Arellano, Jr.

SYNOPSIS AS INTRODUCED:

New Act

Creates the Local Government Fraud Prevention Task Force Act. Requires the Task Force to make recommendations for improving fraud prevention, detection, and investigation in local government including: (1) monitoring the creation and reporting of bank accounts used by local governments; (2)expanding the investigative and prosecutorial capabilities of the State in regard to fraud at the local level; (3) examining the scope and standard practices of government auditing and accounting; (4) examining existing transparency laws; and (5) exploring possibilities for training new government officials on financial oversight responsibilities and powers. Provides that, the Department of Central Management Services shall provide administrative support to the Task Force as needed. Provides that, on or before December 31, 2026, the Task Force shall report its recommendations by filing copies of its report with the Governor and the General Assembly. Dissolves the Task Force upon the filing of the report. Provides that the Act is repealed on January 1, 2028. Effective immediately.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Local Government Fraud Prevention Task Force Act.

Section 5. Local Government Fraud Prevention Task Force. The Local Government Fraud Prevention Task Force is established. The Task Force is specifically charged with advising the General Assembly on steps needed to modernize and improve fraud prevention, detection, and investigation in local governments.

Section 10. Duties. The Task Force shall make recommendations to the General Assembly on how to prevent, detect, and investigate fraud at the local government level. The Task Force's recommendations shall include recommendations regarding the following actions, which may be taken to improve fraud prevention, detection, and investigation:

(1) monitoring the creation and reporting of bank accounts used by local governments;

(2) expanding the investigative and prosecutorial capabilities of the State in regard to corruption and fraud at the local level;

(3) examining the scope and standard practices of government auditing and accounting;

(4) examining existing transparency laws; and

(5) exploring possibilities for training new local government officials on financial oversight responsibilities and powers.

Section 15. Membership. The Task Force shall consist of the following members:

(1) a member of the General Assembly, appointed by the Speaker of the House of Representatives;

(2) a member of the General Assembly, appointed by the Minority Leader of the House of Representatives;

(3) a member of the General Assembly, appointed by the President of the Senate;

(4) a member of the General Assembly, appointed by the Minority Leader of the Senate;

(5) a representative from the Illinois Municipal League, appointed by the Governor;

(6) a representative of counties in the State, appointed by the Governor;

(7) a representative of townships in the State, appointed by the Governor;

(8) an active certified fraud examiner, appointed by the Governor;

(9) a retired certified fraud examiner with experience on Illinois cases, appointed by the Governor;

(10) a representative of the Illinois State Police and other relevant law enforcement agencies, appointed by the Governor; and

(11) a current or retired prosecutor with experience prosecuting fraud against local governments in Illinois, appointed by the Governor.

All members of the Task Force shall serve without compensation. The appointing authorities shall make appointments to the Task Force as soon as practicable after the effective date of this Act. At the initial meeting of the Task Force, the members of the Task Force shall elect 2 co-chairs from among the members of the Task Force appointed under paragraphs (1), (2), (3), and (4).

Section 20. Meetings. The Task Force shall hold its initial meeting within 120 days of the effective date of this Act. Subsequent meetings of the Task Force shall convene at the call of the co-chairs of the Task Force.

Section 25. Support. The Department of Central Management Services shall provide administrative support to the Task Force as needed.

Section 30. Report. On or before December 31, 2026, the Task Force shall report its recommendations by filing copies of a report with the Governor and the General Assembly. Upon filing its report, the Task Force is dissolved.

Section 35. Repeal. This Act is repealed on January 1, 2028.

Section 99. Effective date. This Act takes effect upon becoming law.