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90_HB0093
New Act
25 ILCS 50/Act rep.
25 ILCS 55/Act rep.
25 ILCS 60/Act rep.
25 ILCS 65/Act rep.
25 ILCS 70/Act rep.
25 ILCS 80/Act rep.
Creates the Truth in Budgeting Note Act. Provides that a
Truth in Budgeting Note shall be prepared for every bill
(with specified exceptions) that could reasonably be expected
to increase or decrease revenues or expenditures of the
State, a unit of local government, a school district, or a
community college district. Provides for: requests for
Notes; preparation, contents, and filing of Notes; procedural
matters pertaining to requests for notes and handling of
bills requiring Notes; and review of Notes by the
Comptroller. Repeals the Fiscal Note Act, Pension Impact
Note Act, Judicial Note Act, State Debt Impact Note Act,
Correctional Budget and Impact Note Act, and Balanced Budget
Note Act. Effective immediately.
LRB9000695DNmgA
LRB9000695DNmgA
1 AN ACT in relation to truth in budgeting notes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Truth in Budgeting Note Act.
6 Section 5. Truth in Budgeting Note. A Truth in
7 Budgeting Note shall be prepared for every bill, except
8 appropriation bills that are not supplemental appropriation
9 bills, which could reasonably be expected to increase or
10 decrease either the revenues or expenditures of the State or
11 any unit of local government, school district, or community
12 college district in any fiscal year. The Note shall be filed
13 with the Clerk of the House or the Secretary of the Senate
14 before the bill is read a second time in either chamber. The
15 respective office shall apply a stamp to each Note it
16 receives indicating the date and time that the Note was
17 filed. The Note shall be prepared in the form and manner,
18 and shall have the character and scope, described in this
19 Act.
20 Section 10. Request for Note. For the purposes of this
21 Section, "State agency" is defined as in Section 1-7 of the
22 Illinois State Auditing Act. The sponsor of any bill
23 described in Section 5 shall provide a copy of the bill to
24 the State agency that would, in the opinion of the sponsor,
25 be most directly and substantially affected by the bill, and
26 request that the agency prepare a Note. Whenever the sponsor
27 of any bill has not requested that a Note be prepared, any
28 member of either house may request that a Note be prepared,
29 provided the request is made at least 10 calendar days before
30 the deadline for third reading. Any member of either house
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1 may also request that a second Note be prepared by another
2 agency, and the matter shall be decided by a majority of
3 those present and voting. The Department of Commerce and
4 Community Affairs shall prepare a Note for bills that affect
5 units of local government. The State Superintendent of
6 Education shall prepare a Note for bills that affect school
7 districts. The Illinois Community College Board shall
8 prepare a Note for bills that affect community college
9 districts.
10 Section 15. Preparation of Note. The State agency shall
11 provide the sponsor of the bill with a Note within 7 calendar
12 days after a request is received. The sponsor of the bill
13 may approve an extension of the deadline for another 7
14 calendar days. The subject matter of bills submitted to
15 State agencies for preparation of Notes shall be kept in
16 strict confidence, and no information relating to the bill or
17 its effects shall be divulged by any official or employee of
18 the agency before the bill is introduced in the General
19 Assembly. The name of the State agency or other entity
20 preparing the Note shall appear at the end of the Note, and
21 the Note shall be signed by the head of the agency or other
22 entity or a responsible representative designated by him for
23 the purpose. Copies of the Note shall be provided to the
24 presiding officer of each house, the minority leader of each
25 house, the Clerk of the House of Representatives, the
26 Secretary of the Senate, the Comptroller, the sponsor of the
27 bill, and any member who initiated the request for the Note.
28 Section 20. Contents of the Note. The Note shall
29 consist of 2 parts, the contents of which shall be as
30 follows:
31 (1) Overview and Analysis. The Note shall provide
32 a concise explanation of the bill, and an analysis of its
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1 probable effect on the State or units of local
2 government, school districts, or community college
3 districts. The Note shall provide a reasonable and
4 reliable dollar estimate of the most probable amount of
5 increase or decrease in revenues or expenditures under
6 the provisions of the bill. The Note shall provide an
7 estimate of the effect of the bill for at least the first
8 3 fiscal years in which it would be effective, and shall
9 address the long run effect of the bill whenever
10 reasonable and appropriate. If the agency that prepares
11 the Note determines that no dollar estimate is possible,
12 the Note shall contain an analysis of the bill explaining
13 why its probable effect cannot be reliably estimated.
14 The Note may include any comment or conclusion pertaining
15 to the merits of the bill that the agency preparing the
16 Note deems appropriate, if the comment or conclusion is
17 based on objective and accepted criteria that are
18 explicitly stated in the Note. The Note shall include
19 any other information required by rules and regulations
20 of either house of the General Assembly. A Note for any
21 bill affecting units of local government, school
22 districts, or community college districts shall include
23 cost estimates required by the State Mandates Act.
24 (2) Financial Worksheet. The Note shall include a
25 financial worksheet that: provides a full and complete
26 explanation of the methodology used to calculate the
27 estimate; contains any statistical, economic, or other
28 data on which the estimate is based; explicitly states
29 any assumptions on which the estimate is based; and cites
30 sources wherever appropriate. The worksheet shall
31 include a breakdown of any costs or savings to the State
32 by fund and by major object classification as described
33 in Section 13 of the State Finance Act. The worksheet
34 shall include a breakdown of any costs or savings to
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1 units of local government, school districts, and
2 community college districts by fund and appropriate
3 object categories.
4 Section 25. Amendments. Whenever a bill for which a
5 Note has been requested is amended in any committee of either
6 house or on the floor of either house, the sponsor shall
7 request that a Note be prepared in the same form and manner
8 as if the bill had been introduced with the provisions of the
9 amendment. Whenever a bill for which a Note has not been
10 requested is amended in any committee of either house or on
11 the floor of either house, any member may request that a Note
12 be prepared in the same form and manner as if the bill had
13 been introduced with the provisions of the amendment, and the
14 matter shall be decided by a majority of those present and
15 voting. In either case, the sponsor shall provide a copy of
16 the amended bill to the State agency that would, in the
17 opinion of the sponsor, be most directly and substantially
18 affected by the amended bill, and request that the agency
19 prepare a Note. The bill shall be held on second reading
20 until the note is received or until 7 calendar days have
21 elapsed. Copies of each new or revised Note shall be
22 provided to the persons named in Section 15.
23 Section 30. Hearing of the Bill. The fact that a Note
24 is requested or filed on any bill shall not preclude or
25 restrict in any way the testimony before any committee of the
26 General Assembly of any official, any authorized employee of
27 any State agency or any other entity, or any private citizen.
28 Section 35. Preemptive Note Request. A Note shall be
29 requested on a preemptive basis on certain bills as provided
30 in this Section. Whenever any such bill is introduced in
31 either house, the sponsor shall provide a copy of the bill to
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1 the State agency designated in this Section and request a
2 Note. The agency shall prepare the Note in the form and
3 manner required by this Act, and provide copies of the Note
4 to the person named in Section 15 within 14 calendar days. If
5 a Note on any such bill is not requested on a preemptive
6 basis, any member may request that a Note be prepared as if
7 the preemptive request had been made, provided the request is
8 made at least 15 calendar days before the deadline for third
9 reading. The preparation of a Note on any such bill under
10 other provisions of this Act may be deemed to satisfy the
11 requirements of this Section. The preparation of a Note on
12 any bill that is requested on a preemptive basis does not
13 exclude the bill from any other provisions of this Act.
14 (a) Children and Family Services. A Note shall be
15 requested on a preemptive basis on any bill that could
16 reasonably be expected to increase or decrease expenditures
17 by the Department of Children and Family Services. The
18 sponsor shall request that the Department of Children and
19 Family Services prepare a Note on any such bill that is
20 introduced in the General Assembly. The Note shall include
21 an estimate of the probable effect of the bill on the
22 caseload of the Department and on the Department's annual
23 budget, including the estimated costs of specific activities
24 required by the bill.
25 (b) Corrections. A Note shall be requested on a
26 preemptive basis on any bill that could reasonably be
27 expected to increase or decrease expenditures by the
28 Department of Corrections, including but not limited to any
29 bill that creates a new criminal offense for which a sentence
30 to the Department of Corrections may be imposed, or that
31 enhances any class or category of offense to a higher grade
32 or penalty for which a sentence to the Department of
33 Corrections is authorized, or that requires a mandatory
34 commitment to the Department of Corrections. The sponsor
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1 shall request that the Department of Corrections prepare a
2 Note on any such bill that is introduced in the General
3 Assembly. The Note shall include an estimate of the probable
4 effect of the bill on the resident population of the
5 Department of Corrections and on the Department's annual
6 budget, including the costs of specific activities required
7 by the bill.
8 (c) Group Insurance. A Note shall be requested on a
9 preemptive basis on any bill that could reasonably be
10 expected to increase or decrease expenditures for the State
11 contribution to employee group insurance, as described in
12 Section 13 of the State Finance Act. The sponsor shall
13 request that the Department of Central Management Services
14 prepare a Note on any such bill that is introduced in the
15 General Assembly. The Note shall include an estimate of the
16 probable effect of the bill on the payment schedule and on
17 the funding requirements for group insurance.
18 (d) Health Care Programs. A Note shall be requested on
19 a preemptive basis on all bills that could reasonably be
20 expected to increase or decrease State expenditures for
21 health care programs. For the purposes of this Section,
22 "health care program" means a discrete entity administered by
23 the Department of Public Aid, the Department of Mental Health
24 and Developmental Disabilities, the Department of
25 Rehabilitation Services, or the Department of Human Services
26 as successor to those Departments, or the Department of
27 Veterans Affairs that provides awards or grants to or on
28 behalf of individuals for health care services or provides
29 funds for the maintenance of an individual. The sponsor shall
30 request that the Department primarily responsible for
31 administering the program affected by the bill prepare a Note
32 on any such bill that is introduced in the General Assembly.
33 The Note shall include an estimate of the probable effect of
34 the bill on the caseload of the Department and on the
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1 Department's annual budget, including the costs of specific
2 activities required by the bill.
3 (e) Human Services. A Note shall be requested on a
4 preemptive basis on all bills that could reasonably be
5 expected to increase or decrease State expenditures for the
6 Department of Human Services or any program administered by
7 the Department of Human Services. The sponsor shall request
8 that the Department prepare a Note on any bill affecting the
9 Department that is introduced in the General Assembly. The
10 Note shall include an estimate of the probable effect of the
11 bill on the workload of the Department and on the
12 Department's annual budget, including the costs of specific
13 activities required by the bill.
14 (f) Judicial Branch. A Note shall be requested on a
15 preemptive basis on all bills that could reasonably be
16 expected to increase or decrease State expenditures by the
17 judicial branch of government. The sponsor shall request that
18 the Supreme Court prepare a Note on any such bill that is
19 introduced in the General Assembly.
20 (g) Pensions. A Note shall be requested on a preemptive
21 basis on all bills that would amend, revise, or add to any
22 provision of the Illinois Pension Code. The sponsor shall
23 request that the Illinois Economic and Fiscal Commission
24 prepare a Note on any such bill introduced in the General
25 Assembly. The Note shall include an estimate of the probable
26 effect of the bill, in the short and long term, on any
27 affected pension system, and an analysis of the probable
28 effect of the bill in comparison with the Commission's
29 recommended standards. Copies of the Note shall be provided
30 to the persons named in Section 15; to the Chairman of the
31 House Committee on Personnel and Pensions; and to the
32 Chairman of the Senate Committee on Insurance, Pensions and
33 Licensed Activities.
34 (h) State Debt. A Note shall be requested on a
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1 preemptive basis on all bills that would increase or add new
2 long term debt authorization, or would require appropriation
3 of bond financed funds. For the purposes of this Section,
4 "long term debt authorization" means (i) the dollar amount of
5 any bonds or other evidences of indebtedness that may be
6 required to be repaid, directly or indirectly, from tax
7 revenue, and can be sold in support of designated purposes by
8 the State, any department, authority, public corporation or
9 quasi-public corporation of the State, any State college or
10 university, or any other public agency created by the State,
11 not including units of local government or school districts,
12 regardless of whether or not they are secured by the full
13 faith and credit of the State; or (ii) the dollar amount of
14 any installment purchase or lease purchase agreement having a
15 total principal value in excess of $250,000 or having a term
16 in excess of 5 years. The respective office shall request
17 that the Illinois Economic and Fiscal Commission prepare a
18 Note on any such bill introduced in the General Assembly.
19 For bills that would add new or increase existing bond
20 authorization levels, the Note shall include an assessment of
21 current outstanding, unissued, and retired bond authorization
22 levels and make reasonable projections of the cost associated
23 with the retirement of the additional bonds. For bills that
24 would require appropriation from bond funds, the Note shall
25 include a reliable estimate of the effect of the bill on the
26 State's debt service requirements; a description of the
27 estimated useful life and intended use of the project; and
28 maintenance and operating costs associated with the project.
29 Copies of the Note shall be provided to the persons named
30 in Section 15 and to the Chair and Minority Spokesmen of the
31 appropriation committees of both houses.
32 (i) Supplemental Appropriation Bills. A Note shall be
33 requested on a preemptive basis on all supplemental
34 appropriation bills. For the purposes of this Section,
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1 "supplemental appropriation bill" means any appropriation
2 bill that (i) is introduced or on which a record vote is
3 taken on or after July 1 of a fiscal year and (ii) proposes
4 to authorize, increase, decrease, or reallocate any general
5 funds appropriation for that same fiscal year. The general
6 funds consist of the General Revenue Fund, the Common School
7 Fund, the General Revenue Common School Special Account Fund,
8 and the Education Assistance Fund. The sponsor shall request
9 that each agency to which the supplemental appropriation
10 would be made prepare a Note on any supplemental
11 appropriation bill and any amendment that is filed on any
12 supplemental appropriation bill. For any conference
13 committee report on a supplemental appropriation bill, the
14 conference committee shall be responsible for the preparation
15 and filing of the Note.
16 The Note on a supplemental appropriation bill shall
17 include a discussion of the proposed reduction in other
18 appropriations or increases in State revenue that would allow
19 the measure to be adopted without adversely affecting the
20 State budget for that fiscal year. If a supplemental
21 appropriation bill appropriates money from a bond-financed
22 fund or for the purpose of allowing the recipient agency to
23 enter into an installment purchase or lease purchase
24 agreement having a total principal value in excess of
25 $250,000 or having a term in excess of 5 years, the Note
26 shall also include an estimated annual schedule of any
27 principal and interest payments related to such
28 appropriations.
29 Copies of the Note on a supplemental appropriation bill
30 shall be provided to the persons named in Section 15 and to
31 the Chair and Minority Spokesman of the appropriation
32 committee to which the supplemental appropriation bill is
33 currently assigned or to which the supplemental appropriation
34 bill was originally assigned.
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1 (j) Tax Expenditures. A Note shall be requested on a
2 preemptive basis on all bills that create, expand, or revise
3 a tax expenditure. For the purposes of this Section, "tax
4 expenditure" means any tax incentive authorized by law that
5 by exemption, exclusion, deduction, allowance, credit,
6 preferential tax rate, abatement, or other device reduces the
7 amount of tax revenues that would otherwise accrue to the
8 State. The sponsor shall request that the Department of
9 Revenue prepare a Note on any such bill that is introduced in
10 the General Assembly. The Note shall include an estimate of
11 the total cost of the tax expenditure for the first 2 fiscal
12 years, and an assessment of the effect of the tax expenditure
13 on the incidence of the tax in terms of the relative shares
14 of revenue received if the tax expenditure were in effect
15 compared to the revenue received if the tax expenditure were
16 not in effect for those fiscal years.
17 Copies of the Note shall be provided to the persons named
18 in Section 15 and to the Chair and Minority Spokesmen of the
19 revenue committees of both houses.
20 Section 40. Comptroller Review. The Comptroller shall
21 review all Notes and worksheets for completeness and
22 accuracy, and provide regular updates on the overall effect
23 of legislation on which Notes have been requested and filed.
24 The updates shall be published and provided to the Governor
25 and members of the General Assembly.
26 Section 45. Procedural Requirements. The requirements
27 imposed on bills by this Act shall be deemed to be procedural
28 requirements for passage within the meaning of Section 8 of
29 Article IV of the Constitution of Illinois, and the
30 certification of the Speaker of the House and the President
31 of the Senate shall be conclusive that a certified bill has
32 met the requirements of this Act.
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1 Section 499. Severability. The provisions of this Act
2 are severable under Section 1.31 of the Statute on Statutes.
3 (25 ILCS 50/Act rep.)
4 Section 950. The Fiscal Note Act is repealed.
5 (25 ILCS 55/Act rep.)
6 Section 955. The Pension Impact Note Act is repealed.
7 (25 ILCS 60/Act rep.)
8 Section 960. The Judicial Note Act is repealed.
9 (25 ILCS 65/Act rep.)
10 Section 965. The State Debt Impact Note Act is repealed.
11 (25 ILCS 70/Act rep.)
12 Section 970. The Correctional Budget and Impact Note Act
13 is repealed.
14 (25 ILCS 80/Act rep.)
15 Section 975. The Balanced Budget Note Act is repealed.
16 Section 999. Effective date. This Act takes effect upon
17 becoming law.