100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0644
 
Introduced , by Rep. Daniel J. Burke
 
SYNOPSIS AS INTRODUCED:
 

 
New Act

     Creates the Municipal Financial Distress Alert System Act. Requires the State Comptroller to establish an index system to identify municipalities that are in or approaching financial distress. Provides that the Comptroller shall use the index system to indicate municipalities that have failed to submit annual audits or financial reports to the Comptroller as required by law. Requires the Comptroller to annually review audits and financial reports obtained under the Governmental Account Audit Act and publish a report identifying municipalities that are in or approaching financial distress. Defines terms.
  


LRB100 00378 RJF 10382 b

 
 
A BILL FOR
 

  
HB0644LRB100 00378 RJF 10382 b


  
1    AN ACT concerning State government.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 1. Short title. This Act may be cited as the 
5Municipal Financial Distress Alert System Act.
 
6    Section 5. Purpose. The purpose of this Act is to establish 
7an alert system, directed by the State Comptroller, to annually 
8identify municipalities that are in or approaching financial 
9distress.
 
10    Section 10. Definitions. For the purpose of this Act, 
11unless context indicates otherwise:
12    "Municipality" means a city or village with a population of 
13less than 100,000 that is subject to the Governmental Account 
14Audit Act.
15    "Financial distress" means a financial state in which a 
16municipality is in danger of being unable to provide basic 
17services or pay bills as they come due, according to criteria 
18established by the State Comptroller in consultation with the 
19State Comptroller Local Government Advisory Board.
20    "Financial indicators" means a municipality's reported 
21revenues, expenditures, debt, liabilities, assets, and pension 
22liabilities across all funds and component units derived from 
 
 
HB0644- 2 -LRB100 00378 RJF 10382 b

1audits and financial reports submitted to the State Comptroller 
2or other documents available to the State Comptroller.
 
3    Section 15. Index system.
4    (a) The State Comptroller shall establish an index system 
5to identify municipalities that are in or approaching financial 
6distress.
7    (b) If any municipality has failed to submit annual audits 
8or financial reports to the State Comptroller as required by 
9law, then the Comptroller shall indicate in the annual index 
10that the municipality is not in compliance.
 
11    Section 20. Review of audits. The State Comptroller shall 
12annually review audits and financial reports obtained under the 
13Governmental Account Audit Act and publish a report identifying 
14municipalities that are in or approaching financial distress.