HB0933 101ST GENERAL ASSEMBLY

LRB101 06239 AWJ 51265 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0933

Introduced , by Rep. David McSweeney

SYNOPSIS AS INTRODUCED:

15 ILCS 320/8.5 new
55 ILCS 5/5-38012.5 new
75 ILCS 5/1-8 new
75 ILCS 16/1-60 new
75 ILCS 40/4.5 new

Amends the Counties Code, Illinois Local Library Act, Public Library District Act of 1991, and the Village Library Act. Provides that local libraries may not possess securities or financial assets in a fiscal year in excess of 200% of the total revenue (during the preceding fiscal year) of the local library. Provides that if a local library possesses securities or financial assets in excess of 200% of the total revenue, then it must reduce its property tax levy to ensure that the securities or financial assets plus revenue does not exceed 200% of the total revenue. Requires a voter referendum approving any capital improvement project that at least 50% of the projected cost of the project is to be paid for by the local library's securities or financial assets and it imposes additional operating costs on the local library. Requires a local library to disclose on its website its securities and financial assets when the local library's securities and financial assets are in excess of 50% of the total revenue of the local library. Defines terms. Amends the State Library Act. Requires the State Librarian to adopt rules governing when and how local libraries disclose the local library's securities and financial assets on their website.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

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 5. The State Library Act is amended by adding Section 8.5 as follows:

(15 ILCS 320/8.5 new)

Sec. 8.5. Disclosure by local libraries of securities and financial assets.

(a) As used in this Section:

"Financial asset" and "security" have the meanings given to those terms in Section 8-102 of the Uniform Commercial Code.

"Local library" means a public library or district library operated by a unit of local government. "Local library" does not include county law libraries established under Division 5-39 of the Counties Code.

"Total revenue" means the revenue of a local library during the preceding fiscal year of the local library.

(b) The State Librarian shall adopt rules governing when and how local libraries disclose the local library's securities and financial assets on their website when the local library's securities or financial assets are in excess of 50% of the total revenue of the local library.

Section 10. The Counties Code is amended by adding Section 5-38012.5 as follows:

(55 ILCS 5/5-38012.5 new)

Sec. 5-38012.5. Securities or financial assets; disclosure; capital improvement projects. The restrictions and requirements of Section 1-8 of the Illinois Local Library Act apply to a county library established under this Division and its county library board.

Section 15. The Illinois Local Library Act is amended by adding Section 1-8 as follows:

(75 ILCS 5/1-8 new)

Sec. 1-8. Securities or financial assets; disclosure; capital improvement projects.

(a) As used in this Section:

"Financial asset" and "security" have the meanings given to those terms in Section 8-102 of the Uniform Commercial Code.

"Total revenue" means the revenue of a public library during the preceding fiscal year of the public library.

(b) A public library may not possess securities or financial assets in a fiscal year in excess of 200% of the total revenue of the public library.

(c) If, on the effective date of this amendatory Act of the 101st General Assembly, a public library possesses securities or financial assets in in excess of 200% of the total revenue of the public library during the preceding fiscal year of the public library, the public library must, no later than one year after the effective date of this amendatory Act of the 101st General Assembly, reduce its property tax levy to ensure that the securities or financial assets plus revenue does not exceed 200% of the total revenue of the public library.

(d) If a public library seeks to initiate a capital improvement project that at least 50% of the projected cost of the project is to be paid for by the public library's securities or financial assets and the capital improvement project will impose additional operating costs upon the public library, then, prior to commencement of the project, the corporate authorities of the public library must submit the project to referendum for the voters of the public library to approve.

(e) The corporate authorities of a public library must disclose the public library's securities and financial assets on its website, as required by rules adopted by the State Librarian under Section 8.5 of the State Library Act, when the public library's securities and financial assets are in excess of 50% of the total revenue of the public library.

Section 20. The Public Library District Act of 1991 is amended by adding Section 1-60 as follows:

(75 ILCS 16/1-60 new)

Sec. 1-60. Securities or financial assets; disclosure; capital improvement projects. The restrictions and requirements of Section 1-8 of the Illinois Local Library Act apply to a district established under this Act and its board.

Section 25. The Village Library Act is amended by adding Section 4.5 as follows:

(75 ILCS 40/4.5 new)

Sec. 4.5. Securities or financial assets; disclosure; capital improvement projects. The restrictions and requirements of Section 1-8 of the Illinois Local Library Act apply to a public library established under this Act and its board of trustees.