103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1492

 

Introduced 2/7/2023, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.990 new
30 ILCS 115/2  from Ch. 85, par. 612
35 ILCS 5/901
65 ILCS 5/8-12-3  from Ch. 24, par. 8-12-3
65 ILCS 5/8-12-4  from Ch. 24, par. 8-12-4
65 ILCS 5/8-12-10  from Ch. 24, par. 8-12-10
65 ILCS 5/8-12-18  from Ch. 24, par. 8-12-18
65 ILCS 5/8-12-24  from Ch. 24, par. 8-12-24

    Amends the State Finance Act. Creates the Financially Distressed Cities Fund. Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that the Comptroller shall monthly transfer to the Financially Distressed Cities Fund an amount certified by the Department of Revenue equal to: (1) the amount that would have been distributed under the State Revenue Sharing Act to all financially distressed cities if the Treasurer had transferred to the Local Government Distributive Fund a sum calculated using 10% of the net revenue realized from the tax imposed by the Illinois Income Tax Act upon individuals, trusts, estates, and corporations during the preceding month; and (2) subtracting the amount distributed to all financially distressed cities from the Local Government Distributive Fund. Provides that the Department of Revenue shall monthly allocate an amount from the Financially Distressed Cities Fund that shall be paid to each financially distressed city. Amends the Financially Distressed City Law of the Illinois Municipal Code. Makes the law applicable to both home rule and non-home rule municipalities. Provides that a State agency or unit of local government may also render technical assistance to a municipality's Financial Advisory Authority as the Authority may request. Provides that the State shall not reduce revenues or impose additional costs affecting a financially distressed city affecting the municipality unless it is consistent with the Financial Plan and Budget in effect. Provides that State mandates enacted while a municipality is designated as a financially distressed city that would cause the municipality to incur costs are not valid or enforceable during the period when the municipality is under the financially distressed city designation. Effective January 1, 2024.


LRB103 28926 AWJ 55312 b

 

 

A BILL FOR

 

SB1492LRB103 28926 AWJ 55312 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.990 as follows:
 
6    (30 ILCS 105/5.990 new)
7    Sec. 5.990. The Financially Distressed Cities Fund.
 
8    Section 10. The State Revenue Sharing Act is amended by
9changing Section 2 as follows:
 
10    (30 ILCS 115/2)  (from Ch. 85, par. 612)
11    Sec. 2. Allocation and Disbursement.
12    (a) As soon as may be after the first day of each month,
13the Department of Revenue shall allocate among the several
14municipalities and counties of this State the amount available
15in the Local Government Distributive Fund and in the Income
16Tax Surcharge Local Government Distributive Fund, determined
17as provided in Sections 1 and 1a above. Except as provided in
18Sections 13 and 13.1 of this Act, the Department shall then
19certify such allocations to the State Comptroller, who shall
20pay over to the several municipalities and counties the
21respective amounts allocated to them. The amount of such Funds

 

 

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1allocable to each such municipality and county shall be in
2proportion to the number of individual residents of such
3municipality or county to the total population of the State,
4determined in each case on the basis of the latest census of
5the State, municipality or county conducted by the Federal
6government and certified by the Secretary of State and for
7annexations to municipalities, the latest Federal, State or
8municipal census of the annexed area which has been certified
9by the Department of Revenue. Allocations to the City of
10Chicago under this Section are subject to Section 6 of the
11Hotel Operators' Occupation Tax Act. For the purpose of this
12Section, the number of individual residents of a county shall
13be reduced by the number of individuals residing therein in
14municipalities, but the number of individual residents of the
15State, county and municipality shall reflect the latest census
16of any of them. The amounts transferred into the Local
17Government Distributive Fund pursuant to Section 9 of the Use
18Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the
19Service Occupation Tax Act, and Section 3 of the Retailers'
20Occupation Tax Act, each as now or hereafter amended, pursuant
21to the amendments of such Sections by Public Act 85-1135,
22shall be distributed as provided in said Sections.
23    (a-5) The Department of Revenue shall allocate, as soon as
24may be practicable after the first day of each month, among
25each financially distressed city, as that term is defined in
26Section 8-12-3 of the Illinois Municipal Code, funds

 

 

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1transferred to the Financially Distressed Cities Fund under
2subsection (b-5) of Section 901 of the Illinois Income Tax
3Act. The Department shall then pay over to each financially
4distressed city the respective amounts allocated to it. The
5amount of funds allocable to each financially distressed city
6shall be in proportion to the number of individual residents
7of the financially distressed city to the total population of
8all financially distressed cities combined, determined in each
9case on the basis of the latest census of the State,
10municipality, or county conducted by the Federal government
11and certified by the Secretary of State and for annexations to
12municipalities, the latest Federal, State, or municipal census
13of the annexed area which has been certified by the Department
14of Revenue.
15    (b) It is the intent of the General Assembly that
16allocations made under this Section shall be made in a fair and
17equitable manner. Accordingly, the clerk of any municipality
18to which territory has been annexed, or from which territory
19has been disconnected, shall notify the Department of Revenue
20in writing of that annexation or disconnection and shall (1)
21state the number of residents within the territory that was
22annexed or disconnected, based on the last census conducted by
23the federal, State, or municipal government and certified by
24the Illinois Secretary of State, and (2) furnish therewith a
25certified copy of the plat of annexation or, in the case of
26disconnection, the ordinance, final judgment, or resolution of

 

 

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1disconnection together with an accurate depiction of the
2territory disconnected. The county in which the annexed or
3disconnected territory is located shall verify that the number
4of residents stated on the written notice that is to be sent to
5the Department of Revenue is true and accurate. The verified
6statement of the county shall accompany the written notice.
7However, if the county does not respond to the municipality's
8request for verification within 30 days, this verification
9requirement shall be waived. The written notice shall be
10provided to the Department of Revenue (1) within 30 days after
11the effective date of this amendatory Act of the 96th General
12Assembly for disconnections occurring after January 1, 2007
13and before the effective date of this amendatory Act of the
1496th General Assembly or (2) within 30 days after the
15annexation or disconnection for annexations or disconnections
16occurring on or after the effective date of this amendatory
17Act of the 96th General Assembly. For purposes of this
18Section, a disconnection or annexation through court order is
19deemed to be effective 30 days after the entry of a final
20judgment order, unless stayed pending appeal. Thereafter, the
21monthly allocation made to the municipality and to any other
22municipality or county affected by the annexation or
23disconnection shall be adjusted in accordance with this
24Section to reflect the change in residency of the residents of
25the territory that was annexed or disconnected. The adjustment
26shall be made no later than 30 days after the Department of

 

 

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1Revenue's receipt of the written notice of annexation or
2disconnection described in this Section.
3(Source: P.A. 96-1040, eff. 7-14-10.)
 
4    Section 15. The Illinois Income Tax Act is amended by
5changing Section 901 as follows:
 
6    (35 ILCS 5/901)
7    Sec. 901. Collection authority.
8    (a) In general. The Department shall collect the taxes
9imposed by this Act. The Department shall collect certified
10past due child support amounts under Section 2505-650 of the
11Department of Revenue Law of the Civil Administrative Code of
12Illinois. Except as provided in subsections (b), (c), (e),
13(f), (g), and (h) of this Section, money collected pursuant to
14subsections (a) and (b) of Section 201 of this Act shall be
15paid into the General Revenue Fund in the State treasury;
16money collected pursuant to subsections (c) and (d) of Section
17201 of this Act shall be paid into the Personal Property Tax
18Replacement Fund, a special fund in the State Treasury; and
19money collected under Section 2505-650 of the Department of
20Revenue Law of the Civil Administrative Code of Illinois shall
21be paid into the Child Support Enforcement Trust Fund, a
22special fund outside the State Treasury, or to the State
23Disbursement Unit established under Section 10-26 of the
24Illinois Public Aid Code, as directed by the Department of

 

 

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1Healthcare and Family Services.
2    (b) Local Government Distributive Fund. Beginning August
31, 2017 and continuing through July 31, 2022, the Treasurer
4shall transfer each month from the General Revenue Fund to the
5Local Government Distributive Fund an amount equal to the sum
6of: (i) 6.06% (10% of the ratio of the 3% individual income tax
7rate prior to 2011 to the 4.95% individual income tax rate
8after July 1, 2017) of the net revenue realized from the tax
9imposed by subsections (a) and (b) of Section 201 of this Act
10upon individuals, trusts, and estates during the preceding
11month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
12income tax rate prior to 2011 to the 7% corporate income tax
13rate after July 1, 2017) of the net revenue realized from the
14tax imposed by subsections (a) and (b) of Section 201 of this
15Act upon corporations during the preceding month; and (iii)
16beginning February 1, 2022, 6.06% of the net revenue realized
17from the tax imposed by subsection (p) of Section 201 of this
18Act upon electing pass-through entities. Beginning August 1,
192022, the Treasurer shall transfer each month from the General
20Revenue Fund to the Local Government Distributive Fund an
21amount equal to the sum of: (i) 6.16% of the net revenue
22realized from the tax imposed by subsections (a) and (b) of
23Section 201 of this Act upon individuals, trusts, and estates
24during the preceding month; (ii) 6.85% of the net revenue
25realized from the tax imposed by subsections (a) and (b) of
26Section 201 of this Act upon corporations during the preceding

 

 

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1month; and (iii) 6.16% of the net revenue realized from the tax
2imposed by subsection (p) of Section 201 of this Act upon
3electing pass-through entities. Net revenue realized for a
4month shall be defined as the revenue from the tax imposed by
5subsections (a) and (b) of Section 201 of this Act which is
6deposited in the General Revenue Fund, the Education
7Assistance Fund, the Income Tax Surcharge Local Government
8Distributive Fund, the Fund for the Advancement of Education,
9and the Commitment to Human Services Fund during the month
10minus the amount paid out of the General Revenue Fund in State
11warrants during that same month as refunds to taxpayers for
12overpayment of liability under the tax imposed by subsections
13(a) and (b) of Section 201 of this Act.
14    Notwithstanding any provision of law to the contrary,
15beginning on July 6, 2017 (the effective date of Public Act
16100-23), those amounts required under this subsection (b) to
17be transferred by the Treasurer into the Local Government
18Distributive Fund from the General Revenue Fund shall be
19directly deposited into the Local Government Distributive Fund
20as the revenue is realized from the tax imposed by subsections
21(a) and (b) of Section 201 of this Act.
22    (b-5) Financially Distressed Cities Fund. The Department
23of Revenue shall certify to the Treasurer an amount equal to:
24        (1) the amount that would have been distributed under
25    subsection (a) of Section 2 of the State Revenue Sharing
26    Act to all financially distressed cities, as that term is

 

 

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1    defined in Section 8-12-3 of the Illinois Municipal Code,
2    if the Treasurer had transferred under subsection (b) to
3    the Local Government Distributive Fund a sum calculated
4    using (i) 10% of the net revenue realized from the tax
5    imposed by subsections (a) and (b) of Section 201 of this
6    Act upon individuals, trusts, and estates during the
7    preceding month and (ii) 10% of the net revenue realized
8    from the tax imposed by subsections (a) and (b) of Section
9    201 of this Act upon corporations during the preceding
10    month; and
11        (2) subtracting from the amount calculated under
12    paragraph (1) the amount distributed to all financially
13    distressed cities under subsection (a) of Section 2 of the
14    State Revenue Sharing Act during the current month.
15    Upon receipt of the certification from the Department of
16Revenue, the Treasurer shall order transferred and the
17Comptroller shall transfer from the General Revenue Fund to
18the Financially Distressed Cities Fund the amount shown on the
19certification.
20    If for any reason the aggregate appropriations made
21available are insufficient to meet the amount certified under
22this subsection, this subsection shall constitute a continuing
23appropriation of the amount certified. The General Assembly
24may appropriate lesser amounts by law.
25    (c) Deposits Into Income Tax Refund Fund.
26        (1) Beginning on January 1, 1989 and thereafter, the

 

 

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1    Department shall deposit a percentage of the amounts
2    collected pursuant to subsections (a) and (b)(1), (2), and
3    (3) of Section 201 of this Act into a fund in the State
4    treasury known as the Income Tax Refund Fund. Beginning
5    with State fiscal year 1990 and for each fiscal year
6    thereafter, the percentage deposited into the Income Tax
7    Refund Fund during a fiscal year shall be the Annual
8    Percentage. For fiscal year 2011, the Annual Percentage
9    shall be 8.75%. For fiscal year 2012, the Annual
10    Percentage shall be 8.75%. For fiscal year 2013, the
11    Annual Percentage shall be 9.75%. For fiscal year 2014,
12    the Annual Percentage shall be 9.5%. For fiscal year 2015,
13    the Annual Percentage shall be 10%. For fiscal year 2018,
14    the Annual Percentage shall be 9.8%. For fiscal year 2019,
15    the Annual Percentage shall be 9.7%. For fiscal year 2020,
16    the Annual Percentage shall be 9.5%. For fiscal year 2021,
17    the Annual Percentage shall be 9%. For fiscal year 2022,
18    the Annual Percentage shall be 9.25%. For fiscal year
19    2023, the Annual Percentage shall be 9.25%. For all other
20    fiscal years, the Annual Percentage shall be calculated as
21    a fraction, the numerator of which shall be the amount of
22    refunds approved for payment by the Department during the
23    preceding fiscal year as a result of overpayment of tax
24    liability under subsections (a) and (b)(1), (2), and (3)
25    of Section 201 of this Act plus the amount of such refunds
26    remaining approved but unpaid at the end of the preceding

 

 

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1    fiscal year, minus the amounts transferred into the Income
2    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
3    and the denominator of which shall be the amounts which
4    will be collected pursuant to subsections (a) and (b)(1),
5    (2), and (3) of Section 201 of this Act during the
6    preceding fiscal year; except that in State fiscal year
7    2002, the Annual Percentage shall in no event exceed 7.6%.
8    The Director of Revenue shall certify the Annual
9    Percentage to the Comptroller on the last business day of
10    the fiscal year immediately preceding the fiscal year for
11    which it is to be effective.
12        (2) Beginning on January 1, 1989 and thereafter, the
13    Department shall deposit a percentage of the amounts
14    collected pursuant to subsections (a) and (b)(6), (7), and
15    (8), (c) and (d) of Section 201 of this Act into a fund in
16    the State treasury known as the Income Tax Refund Fund.
17    Beginning with State fiscal year 1990 and for each fiscal
18    year thereafter, the percentage deposited into the Income
19    Tax Refund Fund during a fiscal year shall be the Annual
20    Percentage. For fiscal year 2011, the Annual Percentage
21    shall be 17.5%. For fiscal year 2012, the Annual
22    Percentage shall be 17.5%. For fiscal year 2013, the
23    Annual Percentage shall be 14%. For fiscal year 2014, the
24    Annual Percentage shall be 13.4%. For fiscal year 2015,
25    the Annual Percentage shall be 14%. For fiscal year 2018,
26    the Annual Percentage shall be 17.5%. For fiscal year

 

 

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1    2019, the Annual Percentage shall be 15.5%. For fiscal
2    year 2020, the Annual Percentage shall be 14.25%. For
3    fiscal year 2021, the Annual Percentage shall be 14%. For
4    fiscal year 2022, the Annual Percentage shall be 15%. For
5    fiscal year 2023, the Annual Percentage shall be 14.5%.
6    For all other fiscal years, the Annual Percentage shall be
7    calculated as a fraction, the numerator of which shall be
8    the amount of refunds approved for payment by the
9    Department during the preceding fiscal year as a result of
10    overpayment of tax liability under subsections (a) and
11    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
12    Act plus the amount of such refunds remaining approved but
13    unpaid at the end of the preceding fiscal year, and the
14    denominator of which shall be the amounts which will be
15    collected pursuant to subsections (a) and (b)(6), (7), and
16    (8), (c) and (d) of Section 201 of this Act during the
17    preceding fiscal year; except that in State fiscal year
18    2002, the Annual Percentage shall in no event exceed 23%.
19    The Director of Revenue shall certify the Annual
20    Percentage to the Comptroller on the last business day of
21    the fiscal year immediately preceding the fiscal year for
22    which it is to be effective.
23        (3) The Comptroller shall order transferred and the
24    Treasurer shall transfer from the Tobacco Settlement
25    Recovery Fund to the Income Tax Refund Fund (i)
26    $35,000,000 in January, 2001, (ii) $35,000,000 in January,

 

 

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1    2002, and (iii) $35,000,000 in January, 2003.
2    (d) Expenditures from Income Tax Refund Fund.
3        (1) Beginning January 1, 1989, money in the Income Tax
4    Refund Fund shall be expended exclusively for the purpose
5    of paying refunds resulting from overpayment of tax
6    liability under Section 201 of this Act and for making
7    transfers pursuant to this subsection (d), except that in
8    State fiscal years 2022 and 2023, moneys in the Income Tax
9    Refund Fund shall also be used to pay one-time rebate
10    payments as provided under Sections 208.5 and 212.1.
11        (2) The Director shall order payment of refunds
12    resulting from overpayment of tax liability under Section
13    201 of this Act from the Income Tax Refund Fund only to the
14    extent that amounts collected pursuant to Section 201 of
15    this Act and transfers pursuant to this subsection (d) and
16    item (3) of subsection (c) have been deposited and
17    retained in the Fund.
18        (3) As soon as possible after the end of each fiscal
19    year, the Director shall order transferred and the State
20    Treasurer and State Comptroller shall transfer from the
21    Income Tax Refund Fund to the Personal Property Tax
22    Replacement Fund an amount, certified by the Director to
23    the Comptroller, equal to the excess of the amount
24    collected pursuant to subsections (c) and (d) of Section
25    201 of this Act deposited into the Income Tax Refund Fund
26    during the fiscal year over the amount of refunds

 

 

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1    resulting from overpayment of tax liability under
2    subsections (c) and (d) of Section 201 of this Act paid
3    from the Income Tax Refund Fund during the fiscal year.
4        (4) As soon as possible after the end of each fiscal
5    year, the Director shall order transferred and the State
6    Treasurer and State Comptroller shall transfer from the
7    Personal Property Tax Replacement Fund to the Income Tax
8    Refund Fund an amount, certified by the Director to the
9    Comptroller, equal to the excess of the amount of refunds
10    resulting from overpayment of tax liability under
11    subsections (c) and (d) of Section 201 of this Act paid
12    from the Income Tax Refund Fund during the fiscal year
13    over the amount collected pursuant to subsections (c) and
14    (d) of Section 201 of this Act deposited into the Income
15    Tax Refund Fund during the fiscal year.
16        (4.5) As soon as possible after the end of fiscal year
17    1999 and of each fiscal year thereafter, the Director
18    shall order transferred and the State Treasurer and State
19    Comptroller shall transfer from the Income Tax Refund Fund
20    to the General Revenue Fund any surplus remaining in the
21    Income Tax Refund Fund as of the end of such fiscal year;
22    excluding for fiscal years 2000, 2001, and 2002 amounts
23    attributable to transfers under item (3) of subsection (c)
24    less refunds resulting from the earned income tax credit,
25    and excluding for fiscal year 2022 amounts attributable to
26    transfers from the General Revenue Fund authorized by

 

 

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1    Public Act 102-700 this amendatory Act of the 102nd
2    General Assembly.
3        (5) This Act shall constitute an irrevocable and
4    continuing appropriation from the Income Tax Refund Fund
5    for the purposes of (i) paying refunds upon the order of
6    the Director in accordance with the provisions of this
7    Section and (ii) paying one-time rebate payments under
8    Sections 208.5 and 212.1.
9    (e) Deposits into the Education Assistance Fund and the
10Income Tax Surcharge Local Government Distributive Fund. On
11July 1, 1991, and thereafter, of the amounts collected
12pursuant to subsections (a) and (b) of Section 201 of this Act,
13minus deposits into the Income Tax Refund Fund, the Department
14shall deposit 7.3% into the Education Assistance Fund in the
15State Treasury. Beginning July 1, 1991, and continuing through
16January 31, 1993, of the amounts collected pursuant to
17subsections (a) and (b) of Section 201 of the Illinois Income
18Tax Act, minus deposits into the Income Tax Refund Fund, the
19Department shall deposit 3.0% into the Income Tax Surcharge
20Local Government Distributive Fund in the State Treasury.
21Beginning February 1, 1993 and continuing through June 30,
221993, of the amounts collected pursuant to subsections (a) and
23(b) of Section 201 of the Illinois Income Tax Act, minus
24deposits into the Income Tax Refund Fund, the Department shall
25deposit 4.4% into the Income Tax Surcharge Local Government
26Distributive Fund in the State Treasury. Beginning July 1,

 

 

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11993, and continuing through June 30, 1994, of the amounts
2collected under subsections (a) and (b) of Section 201 of this
3Act, minus deposits into the Income Tax Refund Fund, the
4Department shall deposit 1.475% into the Income Tax Surcharge
5Local Government Distributive Fund in the State Treasury.
6    (f) Deposits into the Fund for the Advancement of
7Education. Beginning February 1, 2015, the Department shall
8deposit the following portions of the revenue realized from
9the tax imposed upon individuals, trusts, and estates by
10subsections (a) and (b) of Section 201 of this Act, minus
11deposits into the Income Tax Refund Fund, into the Fund for the
12Advancement of Education:
13        (1) beginning February 1, 2015, and prior to February
14    1, 2025, 1/30; and
15        (2) beginning February 1, 2025, 1/26.
16    If the rate of tax imposed by subsection (a) and (b) of
17Section 201 is reduced pursuant to Section 201.5 of this Act,
18the Department shall not make the deposits required by this
19subsection (f) on or after the effective date of the
20reduction.
21    (g) Deposits into the Commitment to Human Services Fund.
22Beginning February 1, 2015, the Department shall deposit the
23following portions of the revenue realized from the tax
24imposed upon individuals, trusts, and estates by subsections
25(a) and (b) of Section 201 of this Act, minus deposits into the
26Income Tax Refund Fund, into the Commitment to Human Services

 

 

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1Fund:
2        (1) beginning February 1, 2015, and prior to February
3    1, 2025, 1/30; and
4        (2) beginning February 1, 2025, 1/26.
5    If the rate of tax imposed by subsection (a) and (b) of
6Section 201 is reduced pursuant to Section 201.5 of this Act,
7the Department shall not make the deposits required by this
8subsection (g) on or after the effective date of the
9reduction.
10    (h) Deposits into the Tax Compliance and Administration
11Fund. Beginning on the first day of the first calendar month to
12occur on or after August 26, 2014 (the effective date of Public
13Act 98-1098), each month the Department shall pay into the Tax
14Compliance and Administration Fund, to be used, subject to
15appropriation, to fund additional auditors and compliance
16personnel at the Department, an amount equal to 1/12 of 5% of
17the cash receipts collected during the preceding fiscal year
18by the Audit Bureau of the Department from the tax imposed by
19subsections (a), (b), (c), and (d) of Section 201 of this Act,
20net of deposits into the Income Tax Refund Fund made from those
21cash receipts.
22(Source: P.A. 101-8, see Section 99 for effective date;
23101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
246-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
25eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22;
26102-813, eff. 5-13-22; revised 8-2-22.)
 

 

 

SB1492- 17 -LRB103 28926 AWJ 55312 b

1    Section 20. The Illinois Municipal Code is amended by
2changing Sections 8-12-3, 8-12-4, 8-12-10, 8-12-18, and
38-12-24 as follows:
 
4    (65 ILCS 5/8-12-3)  (from Ch. 24, par. 8-12-3)
5    Sec. 8-12-3. As used in this Division:
6    (1) "Authority" means the "(Name of Financially Distressed
7City) Financial Advisory Authority".
8    (2) "Financially distressed city" means any municipality
9which: is a home rule unit and which (i) is a home rule unit
10certified by the Department of Revenue as being in the highest
115% of all home rule municipalities in terms of the aggregate of
12the rate per cent of all taxes levied pursuant to statute or
13ordinance upon all taxable property of the municipality and as
14being in the lowest 5% of all home rule municipalities in terms
15of per capita tax yield, or is a non-home rule unit certified
16by the Department of Revenue as being in the highest 5% of all
17non-home rule municipalities in terms of the aggregate of the
18rate per cent of all taxes levied pursuant to statute or
19ordinance upon all taxable property of the municipality and as
20being in the lowest 5% of all non-home rule municipalities in
21terms of per capita tax yield; and (ii) is designated by joint
22resolution of the General Assembly as a financially distressed
23city.
24    (3) "Home rule municipality" means a municipality which is

 

 

SB1492- 18 -LRB103 28926 AWJ 55312 b

1a home rule unit as provided in Section 6 of Article VII of the
2Illinois Constitution.
3    (4) "Budget" means an annual appropriation ordinance or
4annual budget as described in Division 2 of Article 8, as from
5time to time in effect in the financially distressed city.
6    (5) "Chairperson" means the chairperson of the Authority
7appointed pursuant to Section 8-12-7.
8    (6) "Financial Plan" means the financially distressed
9city's financial plan as developed pursuant to Section
108-12-15, as from time to time in effect.
11    (7) "Fiscal year" means the fiscal year of the financially
12distressed city.
13    (8) "Obligations" means bonds, notes or other evidence of
14indebtedness issued by the Illinois Finance Authority in
15connection with the provision of financial aid to a
16financially distressed city pursuant to this Division and
17applicable provisions of the Illinois Finance Authority Act.
18(Source: P.A. 93-205, eff. 1-1-04.)
 
19    (65 ILCS 5/8-12-4)  (from Ch. 24, par. 8-12-4)
20    Sec. 8-12-4. In order to receive assistance as provided in
21this Division, a home rule municipality shall first, by
22ordinance passed by its corporate authorities, request (i)
23that the Department of Revenue certify that it is in the
24highest 5% of all home rule or non-home rule municipalities,
25respectively, in terms of the aggregate of the rate per cent of

 

 

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1all taxes levied pursuant to statute or ordinance upon all
2taxable property of the municipality and in the lowest 5% of
3all home rule or non-home rule municipalities, respectively,
4in terms of per capita tax yield, and (ii) that the General
5Assembly by joint resolution designate it as a financially
6distressed city. A home rule municipality which is so
7certified and designated as a financially distressed city and
8which desires to receive assistance as provided in this
9Division shall, by ordinance passed by its corporate
10authorities, request that a financial advisory authority be
11appointed for the municipality and that the municipality city
12and that the city receive assistance as provided in this
13Division, and shall file a certified copy of that ordinance
14with the Governor, with the Clerk of the House of
15Representatives and with the Secretary of the Senate. Upon the
16filing of the certified copies of that ordinance as required
17by this Section this Division and all of its provisions shall
18then and thereafter be applicable to the financially
19distressed city, shall govern and control its financial
20accounting, budgeting and taxing procedures and practices,
21and, subject to the limitations of subsection (a) of Section
228-12-22, shall remain in full force and effect with respect
23thereto until such time as the financial advisory authority
24established under Section 8-12-5 is abolished as provided in
25subsection (c) of Section 8-12-22.
26(Source: P.A. 86-1211.)
 

 

 

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1    (65 ILCS 5/8-12-10)  (from Ch. 24, par. 8-12-10)
2    Sec. 8-12-10. Any State agency or unit of local
3government, within its respective function, may render such
4services and technical assistance to the Authority as the
5Authority may request. Upon the Authority's request any such
6agency or unit of local government may transfer to the
7Authority such officers and employees as the Authority and any
8such agency or unit of local government deem necessary to
9carry out the Authority's functions and duties. Officers and
10employees so transferred shall not lose or forfeit their
11employment status or rights.
12(Source: P.A. 86-1211.)
 
13    (65 ILCS 5/8-12-18)  (from Ch. 24, par. 8-12-18)
14    Sec. 8-12-18. (a) The financially distressed city shall
15meet its debt service obligations as they become due. No other
16expenditure shall be made by the city unless it is consistent
17with the Financial Plan and Budget in effect. The State shall
18not reduce revenues or impose additional costs affecting the
19financially distressed city, including, but not limited to,
20the revenue offsets authorized under Sections 3-125, 4-118,
21and 7-172.1 of the Illinois Pension Code and deductions from
22warrants under Section 10.05 of the State Comptroller Act
23unless it is consistent with the Financial Plan and Budget in
24effect. This subsection does not limit the Department of

 

 

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1Revenue's authority to reduce revenues to correct an error.
2    (b) State mandates enacted while a municipality is
3designated as a financially distressed city that would cause
4the municipality to incur additional costs are not valid or
5enforceable against the municipality during the period when
6the municipality is under the financially distressed city
7designation.
8(Source: P.A. 86-1211.)
 
9    (65 ILCS 5/8-12-24)  (from Ch. 24, par. 8-12-24)
10    Sec. 8-12-24. A municipality home rule unit which is a
11financially distressed city to which this Division is
12applicable as provided in Section 8-12-4 may not employ
13financial or fiscal accounting or budgetary procedures or
14systems, nor place into effect any Financial Plan or Budget,
15nor enter into any contract or make any expenditure, nor
16otherwise conduct its financial and fiscal affairs or take
17other action in a manner inconsistent with the provisions of
18this Division, until such time as the powers and
19responsibilities of the Authority are terminated as provided
20in Section 8-12-22. This Section is a limitation under
21subsection (i) of Section 6 of Article VII of the Illinois
22Constitution on the concurrent exercise by home rule units
23which are financially distressed cities to which this Division
24is applicable as provided in Section 8-12-4 of powers and
25functions exercised by the State.

 

 

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1(Source: P.A. 86-1211.)
 
2    Section 99. Effective date. This Act takes effect January
31, 2024.