Rep. Kathleen A. Ryg

Filed: 4/12/2005

 

 


 

 


 
09400HB0567ham001 LRB094 05520 BDD 45106 a

1
AMENDMENT TO HOUSE BILL 567

2     AMENDMENT NO. ______. Amend House Bill 567 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The State Mandates Act is amended by changing
5 Sections 3 and 8 as follows:
 
6     (30 ILCS 805/3)  (from Ch. 85, par. 2203)
7     Sec. 3. Definition. As used in this Act: (a) "Local
8 government" means a municipality, county, township, other unit
9 of local government, school district, or community college
10 district.
11     (b) "State mandate" means any State-initiated statutory or
12 executive action that requires a local government to establish,
13 expand or modify its activities in such a way as to necessitate
14 additional expenditures from local revenues, excluding any
15 order issued by a court other than any order enforcing such
16 statutory or executive action. State mandates may be
17 reimbursable or nonreimbursable as provided in this Act.
18 However, where the General Assembly enacts legislation to
19 comply with a federal mandate, the State shall be exempt from
20 the requirement of reimbursing for the cost of the mandated
21 program.
22     (c) "Local government organization and structure mandate"
23 means a State mandate concerning such matters as (1) the form
24 of local government and the adoption and revision of statutes

 

 

09400HB0567ham001 - 2 - LRB094 05520 BDD 45106 a

1 on the organization of local government; (2) the establishment
2 of multi-county districts, councils of governments, or other
3 forms and structures for interlocal cooperation and
4 coordination; (3) the holding of local elections; (4) the
5 designation of public officers, and their duties, powers and
6 responsibilities; and (5) the prescription of administrative
7 practices and procedures for local governing bodies.
8     (d) "Due process mandate" means a State mandate concerning
9 such matters as the (1) administration of justice; (2)
10 notification and conduct of public hearings; (3) procedures for
11 administrative and judicial review of actions taken by local
12 governing bodies and (4) protection of the public from
13 malfeasance, misfeasance, or nonfeasance by local government
14 officials.
15     (e) "Benefit spillover" means the process of accrual of
16 social or other benefits from a governmental service to
17 jurisdictions adjacent to or beyond the jurisdiction providing
18 the service.
19     (f) "Service mandate" means a State mandate as to creation
20 or expansion of governmental services or delivery standards
21 therefor and those applicable to services having substantial
22 benefit spillover and consequently being wider than local
23 concern. For purposes of this Act, applicable services include
24 but are not limited to (1) elementary and secondary education,
25 (2) community colleges, (3) public health, (4) hospitals, (5)
26 public assistance, (6) air pollution control, (7) water
27 pollution control, (8) solid waste treatment and disposal. A
28 State mandate that expands the duties of a public official by
29 requiring the provision of additional services is a "service
30 mandate" rather than a "local government organization and
31 structure mandate".
32     (g) "Tax exemption mandate" means a State mandate that
33 exempts privately owned property or other specified items from
34 the local tax base, such as (1) exemption of business

 

 

09400HB0567ham001 - 3 - LRB094 05520 BDD 45106 a

1 inventories from the local property tax base, and (2) exemption
2 of food or medicine from the local "sales" tax.
3     (h) "Personnel mandate" means a State mandate concerning or
4 affecting local government (1) salaries and wages; (2) employee
5 qualifications and training (except when any civil service
6 commission, professional licensing board, or personnel board
7 or agency established by State law sets and administers
8 standards relative to merit-based recruitment or candidates
9 for employment or conducts and grades examinations and rates
10 candidates in order of their relative excellence for purposes
11 of making appointments or promotions to positions in the
12 competitive division of the classified service of the public
13 employer served by such commission, board, or agency); (3)
14 hours, location of employment, and other working conditions;
15 and (4) fringe benefits including insurance, health, medical
16 care, retirement and other benefits.
17     (i) "Applicant" means a local government, other than a
18 school district, that petitions the Department of Commerce and
19 Economic Opportunity for a waiver or modification of a State
20 mandate.
21 (Source: P.A. 81-1562.)
 
22     (30 ILCS 805/8)  (from Ch. 85, par. 2208)
23     Sec. 8. Exclusions, reimbursement application, review,
24 appeals, and adjudication.
25     (a) Exclusions: Any of the following circumstances
26 inherent to, or associated with, a mandate shall exclude the
27 State from reimbursement liability under this Act. If the
28 mandate (1) accommodates a request from local governments or
29 organizations thereof; (2) imposes additional duties of a
30 nature which can be carried out by existing staff and
31 procedures at no appreciable net cost increase; (3) creates
32 additional costs but also provides offsetting savings
33 resulting in no aggregate increase in net costs; (4) imposes a

 

 

09400HB0567ham001 - 4 - LRB094 05520 BDD 45106 a

1 cost that is wholly or largely recovered from Federal, State or
2 other external financial aid; (5) imposes additional annual net
3 costs of less than $1,000 for each of the several local
4 governments affected or less than $50,000, in the aggregate,
5 for all local governments affected.
6     The failure of the General Assembly to make necessary
7 appropriations shall relieve the local government of the
8 obligation to implement any service mandates, tax exemption
9 mandates, and personnel mandates, as specified in Section 6,
10 subsections (b), (c), (d) and (e), unless the exclusion
11 provided for in this Section are explicitly stated in the Act
12 establishing the mandate. In the event that funding is not
13 provided for a State-mandated program by the General Assembly,
14 the local government may implement or continue the program upon
15 approval of its governing body. If the local government
16 approves the program and funding is subsequently provided, the
17 State shall reimburse the local governments only for costs
18 incurred subsequent to the funding.
19     (b) Reimbursement Estimation and Appropriation Procedure.
20         (1) When a bill is introduced in the General Assembly,
21     the Legislative Reference Bureau, hereafter referred to as
22     the Bureau, shall determine whether such bill may require
23     reimbursement to local governments pursuant to this Act.
24     The Bureau shall make such determination known in the
25     Legislative Synopsis and Digest.
26         In making the determination required by this
27     subsection (b) the Bureau shall disregard any provision in
28     a bill which would make inoperative the reimbursement
29     requirements of Section 6 above, including an express
30     exclusion of the applicability of this Act, and shall make
31     the determination irrespective of any such provision.
32         (2) Any bill or amended bill which creates or expands a
33     State mandate shall be subject to the provisions of "An Act
34     requiring fiscal notes in relation to certain bills",

 

 

09400HB0567ham001 - 5 - LRB094 05520 BDD 45106 a

1     approved June 4, 1965, as amended. The fiscal notes for
2     such bills or amended bills shall include estimates of the
3     costs to local government and the costs of any
4     reimbursement required under this Act. In the case of bills
5     having a potential fiscal impact on units of local
6     government, the fiscal note shall be prepared by the
7     Department. In the case of bills having a potential fiscal
8     impact on school districts, the fiscal note shall be
9     prepared by the State Superintendent of Education. In the
10     case of bills having a potential fiscal impact on community
11     college districts, the fiscal note shall be prepared by the
12     Illinois Community College Board. Such fiscal note shall
13     accompany the bill that requires State reimbursement and
14     shall be prepared prior to any final action on such a bill
15     by the assigned committee. However, if a fiscal note is not
16     filed by the appropriate agency within 30 days of
17     introduction of a bill, the bill can be heard in committee
18     and advanced to the order of second reading. The bill shall
19     then remain on second reading until a fiscal note is filed.
20     A bill discharged from committee shall also remain on
21     second reading until a fiscal note is provided by the
22     appropriate agency.
23         (3) The estimate required by paragraph (2) above, shall
24     include the amount estimated to be required during the
25     first fiscal year of a bill's operation in order to
26     reimburse local governments pursuant to Section 6, for
27     costs mandated by such bill. In the event that the
28     effective date of such a bill is not the first day of the
29     fiscal year the estimate shall also include the amount
30     estimated to be required for reimbursement for the next
31     following full fiscal year.
32         (4) For the initial fiscal year, reimbursement funds
33     shall be provided as follows: (i) any statute mandating
34     such costs shall have a companion appropriation bill, and

 

 

09400HB0567ham001 - 6 - LRB094 05520 BDD 45106 a

1     (ii) any executive order mandating such costs shall be
2     accompanied by a bill to appropriate the funds therefor,
3     or, alternatively an appropriation for such funds shall be
4     included in the executive budget for the next following
5     fiscal year.
6         In subsequent fiscal years appropriations for such
7     costs shall be included in the Governor's budget or
8     supplemental appropriation bills.
9     (c) Reimbursement Application and Disbursement Procedure.
10         (1) For the initial fiscal year during which
11     reimbursement is authorized, each local government, or
12     more than one local government wishing to join in filing a
13     single claim, believing itself to be entitled to
14     reimbursement under this Act shall submit to the
15     Department, State Superintendent of Education or Illinois
16     Community College Board within 60 days of the effective
17     date of the mandate a claim for reimbursement accompanied
18     by its estimate of the increased costs required by the
19     mandate for the balance of the fiscal year. The Department,
20     State Superintendent of Education or Illinois Community
21     College Board shall review such claim and estimate, shall
22     apportion the claim into 3 equal installments and shall
23     direct the Comptroller to pay the installments at equal
24     intervals throughout the remainder of the fiscal year from
25     the funds appropriated for such purposes, provided that the
26     Department, State Superintendent of Education or Illinois
27     Community College Board may (i) audit the records of any
28     local government to verify the actual amount of the
29     mandated cost, and (ii) reduce any claim determined to be
30     excessive or unreasonable.
31         (2) For the subsequent fiscal years, local governments
32     shall submit claims as specified above on or before October
33     1 of each year. The Department, State Superintendent of
34     Education or Illinois Community College Board shall

 

 

09400HB0567ham001 - 7 - LRB094 05520 BDD 45106 a

1     apportion the claims into 3 equal installments and shall
2     direct the Comptroller to pay the first installment upon
3     approval of the claims, with subsequent installments to
4     follow on January 1 and March 1, such claims to be paid
5     from funds appropriated therefor, provided that the
6     Department, State Superintendent of Education or Illinois
7     Community College Board (i) may audit the records of any
8     local governments to verify the actual amount of the
9     mandated cost, (ii) may reduce any claim, determined to be
10     excessive or unreasonable, and (iii) shall adjust the
11     payment to correct for any underpayments or overpayments
12     which occurred in the previous fiscal year.
13         (3) Any funds received by a local government pursuant
14     to this Act may be used for any public purpose.
15         If the funds appropriated for reimbursement of the
16     costs of local government resulting from the creation or
17     expansion of a State mandate are less than the total of the
18     approved claims, the amount appropriated shall be prorated
19     among the local governments having approved claims.
20     (d) Appeals and Adjudication.
21         (1) Applicants Local governments may appeal
22     determinations made by State agencies acting pursuant to
23     subsection (c) above. The appeal must be submitted to the
24     Department of Commerce and Economic Opportunity for a
25     waiver or modification of a State Mandate if the applicant
26     demonstrates that it can address the intent of the rule or
27     mandate in a more effective, efficient, or economical
28     manner. An applicant seeking a waiver or modification of a
29     State Mandate must submit an application that includes a
30     written request and must demonstrate that the intent of the
31     mandate can be addressed in a more effective, efficient, or
32     economical manner. Any applicant requesting a waiver or
33     modification for the reason that the intent of the mandate
34     can be addressed in a more economical manner shall include

 

 

09400HB0567ham001 - 8 - LRB094 05520 BDD 45106 a

1     in the application a fiscal analysis showing current or
2     expected expenditures on the mandate and projected savings
3     resulting from the waiver or modification. Applicants and
4     plans developed by the applicant must be approved by the
5     corporate authority of the applicant seeking the waiver or
6     modification following a public hearing on the application
7     and plan. The public hearing may be held during a regularly
8     scheduled meeting of the corporate authority. The public
9     hearing must be preceded by at least one published notice
10     occurring at least 7 days prior to the hearing in a
11     newspaper of general circulation within the affected area
12     that sets forth the time, date, place and general subject
13     matter of the hearing.
14         A request for a waiver or modification of a State
15     Mandate shall be submitted to the Department of Commerce
16     and Economic Opportunity within 15 days after the approval
17     by the corporate authority. The application as submitted to
18     the Department shall include a description of the public
19     hearing. The description shall included, but need not be
20     limited to, the means of notice, the number of people in
21     attendance, the number of people who spoke as proponents or
22     opponents of the waiver, a brief description of their
23     comments and whether there were any written statements
24     submitted. The Department shall review the applications
25     and requests for completeness, with the assistance of the
26     Illinois Community College Board, and shall compile the
27     requests in reports to be filed with the General Assembly.
28         The Department shall file reports outlining the
29     waivers requested with the Senate and the House of
30     Representatives before each May 1 and October 1. The
31     General Assembly may disapprove the report of the
32     Department in whole or in part within 30 calendar days
33     after each house of the General Assembly next convenes
34     after the report is filed by adoption of a resolution by a

 

 

09400HB0567ham001 - 9 - LRB094 05520 BDD 45106 a

1     record vote of the majority of members elected in each
2     house. If the General Assembly fails to disapprove any
3     waiver request within that 30 day period, the waiver or
4     modification shall be deemed granted. Any resolution
5     adopted by the General Assembly disapproving a report of
6     the Department in whole or in part shall be binding on the
7     Department.
8         (2) On or before February 1 of each year, the
9     Department shall submit a cumulative report summarizing
10     all types of waivers or modifications of State Mandates
11     granted by the General Assembly. The report shall identify
12     the topic of the waiver along with the number and
13     percentage of applicants for which the waiver has been
14     granted. State Mandates Board of Review created by Section
15     9.1 of this Act within 60 days following the date of
16     receipt of the determination being appealed. The appeal
17     must include evidence as to the extent to which the mandate
18     has been carried out in an effective manner and executed
19     without recourse to standards of staffing or expenditure
20     higher than specified in the mandatory statute, if such
21     standards are specified in the statute. The State Mandates
22     Board of Review, after reviewing the evidence submitted to
23     it, may increase or reduce the amount of a reimbursement
24     claim. The decision of the State Mandates Board of Review
25     shall be final subject to judicial review. However, if
26     sufficient funds have not been appropriated, the
27     Department shall notify the General Assembly of such cost,
28     and appropriations for such costs shall be included in a
29     supplemental appropriation bill.
30         (2) A local government may also appeal directly to the
31     State Mandates Board of Review in those situations in which
32     the Department of Commerce and Community Affairs does not
33     act upon the local government's application for
34     reimbursement or request for mandate determination

 

 

09400HB0567ham001 - 10 - LRB094 05520 BDD 45106 a

1     submitted under this Act. The appeal must include evidence
2     that the application for reimbursement or request for
3     mandate determination was properly filed and should have
4     been reviewed by the Department.
5         An appeal may be made to the Board if the Department
6     does not respond to a local government's application for
7     reimbursement or request for mandate determination within
8     120 days after filing the application or request. In no
9     case, however, may an appeal be brought more than one year
10     after the application or request is filed with the
11     Department.
12 (Source: P.A. 89-304, eff. 8-11-95; 89-626, eff. 8-9-96;
13 revised 12-6-03.)".